Document:

<PAGE>   1

                                                                    Exhibit 4(l)

                                 [FACE OF NOTE]

CUSIP NO.

REGISTERED                                                          FACE AMOUNT
PRINCIPAL AMOUNT
No. FL -

                                EATON CORPORATION
                                MEDIUM-TERM NOTE
                              (SINGLE INDEXED NOTE)
                                 (FLOATING RATE)

                  If the registered owner of this Security (as indicated below)
is The Depository Trust Company (the "Depository") or a nominee of the
Depository, this Security is a Global Security and the following two legends
apply:

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

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH
NOMINEE TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

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

<PAGE>   2
                                       2
<TABLE>
<CAPTION>
<S>                                            <C>
ISSUE PRICE:                                   OPTION TO ELECT REPAYMENT:   [ ] YES  [ ] NO

ORIGINAL ISSUE DATE:                           OPTIONAL REPAYMENT DATE[S]:

STATED MATURITY DATE:

INITIAL INTEREST RATE:                         OPTIONAL REDEMPTION:  [ ] YES  [ ] NO

BASE RATE:                                     INITIAL REDEMPTION DATE:
  If LIBOR: [ ] LIBOR Telerate
            [ ] LIBOR Reuters                  INITIAL REDEMPTION PERCENTAGE:
            [ ] Other
            Designated LIBOR Page:             ANNUAL REDEMPTION PERCENTAGE REDUCTION:
            Designated LIBOR Currency:

INDEX MATURITY:                                MINIMUM DENOMINATIONS:
                                               [ ] $1,000
SPREAD (PLUS OR MINUS):                        [ ] Other:

                                               SPECIFIED CURRENCY:
SPREAD MULTIPLIER:                             United States Dollars:
                                               [ ] YES   [ ] NO
                                               Foreign Currency:
CALCULATION AGENT:
                                               OPTION TO RECEIVE PAYMENTS
                                               IN SPECIFIED CURRENCY
CALCULATION DATE:                              OTHER THAN U.S. DOLLARS:
                                               [ ] YES   [ ] NO

SINKING FUND:                                  EXCHANGE RATE AGENT:

MAXIMUM INTEREST RATE:

MINIMUM INTEREST RATE:

INTEREST DETERMINATION DATE:                   ADDITIONAL AMOUNTS:

INTEREST RESET PERIOD:                         DEFEASANCE:  [ ] YES  [ ] NO

INTEREST RESET DATES:                          COVENANT DEFEASANCE:  [ ] YES  [ ] NO

INTEREST PAYMENT PERIOD:                       INDEXED CURRENCY:

                                               United States Dollars:  [  ] YES  [  ] NO
INTEREST PAYMENT DATES:
                                               Foreign Currency:

                                               PRINCIPAL FINANCIAL CENTER

REGULAR RECORD DATES:                          BASE EXCHANGE RATE:

TOTAL AMOUNT OF OID:
                                               DETERMINATION AGENT:

INITIAL ACCRUAL PERIOD OID:

YIELD TO MATURITY:                             REFERENCE DEALERS:
                                               1. ___
OTHER/DIFFERENT PROVISIONS:                    2. ___
                                               3. ___
</TABLE>

<PAGE>   3

                  EATON CORPORATION, an Ohio corporation (herein referred to as
the "Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to

____________________, or registered assigns, in the Specified Currency on the
Stated Maturity Date shown above (except to the extent redeemed or repaid prior
to the Stated Maturity Date), the principal sum of _______ (the "Face Amount"),
plus or minus an amount determined by the Determination Agent (specified above)
in accordance with the formula set forth below, and to pay interest on the Face
Amount as described below and on the reverse hereof.

                  If the Spot Rate exceeds or equals the Base Exchange Rate, the
principal amount of this Security payable on the Maturity Date (as defined
below) shall equal:

         Face Amount  +   (Face Amount  x    Spot Rate - Base Exchange Rate)
                                             ------------------------------
                                                   Base Exchange Rate

                  If the Base Exchange Rate exceeds the Spot Rate, the principal
amount of this Security payable on the Maturity Date shall equal:

         Face Amount  -  (Face Amount  x     Base Exchange Rate - Spot Rate)
                                             ------------------------------
                                                   Base Exchange Rate

; provided, however, that in no event shall such principal amount be less than
zero.

                  In making the above calculations, the (i) "Base Exchange Rate"
is the exchange rate specified as such above and (ii) "Spot Rate" is the rate at
which the Specified Currency can be exchanged for the Indexed Currency specified
above (such rate stated as units of Indexed Currency per unit of the Specified
Currency) as determined on the second Exchange Rate Day, as defined below, prior
to the Maturity Date (the "Determination Date") by the Determination Agent based
upon the arithmetic mean of the open market spot offer quotations for such
Indexed Currency (spot bid quotations for the Specified Currency) obtained by
the Determination Agent from the Reference Dealers specified above in The City
of New York at 11:00 A.M., New York City time, on the Determination Date, for an
amount of Indexed Currency equal to the Face Amount of this Security multiplied
by the Base Exchange Rate, in terms of the Specified Currency for settlement on
the Maturity Date. If such quotations from the Reference Dealers are not
available on the Determination Date due to circumstances beyond the control of
the Company or the Determination Agent, the Spot Rate will be determined on the
basis of the most

<PAGE>   4

                                        2

recently available quotations from the Reference Dealers. If any of the
Reference Dealers shall be unwilling or unable to provide the requested
quotations, the Company may select other major money center bank or banks in The
City of New York, in consultation with the Determination Agent, to act as
Reference Dealer or Dealers in replacement therefor. In the absence of manifest
error, the determination by the Determination Agent of the Spot Rate and the
principal amount of this Security payable on the Maturity Date shall be final
and binding on the Company, the Trustee (referred to on the reverse hereof) and
the Holder (as defined below) of this Security.

         "Exchange Rate Day" means any day which is a Business Day in The City
of New York and, if the Specified Currency or Indexed Currency is any currency
or currency unit other than U.S. dollars, in the Principal Financial Center of
the country of such Specified Currency or Indexed Currency.

                  The Company shall pay interest on the Face Amount hereof at
the Interest Rate shown above from the Original Issue Date shown above until the
first Interest Reset Date shown above following the Original Issue Date (if the
first Interest Reset Date is later than the Original Issue Date) and thereafter
at the interest rate determined by reference to the Base Rate shown above, plus
or minus the Spread, if any, or multiplied by the Spread Multiplier, if any,
shown above, or adjusted by such other formula, if any, set forth on the face
hereof, until the principal hereof is paid or made available for payment;
provided, however, that the interest rate in effect for the ten days immediately
prior to the Maturity Date (as defined below) of this Security will be that in
effect on the tenth day preceding such date. The Company will pay interest on
each Interest Payment Date, if any, specified above, commencing with the first
Interest Payment Date next succeeding the Original Issue Date, and on the Stated
Maturity Date, any Redemption Date or Repayment Date (each such date being
hereinafter referred to as the "Maturity Date" with respect to the principal
repayable on such date); provided, however, that any payment of principal (or
premium, if any) or interest, if any, to be made on any Interest Payment Date or
on the Maturity Date that is not a Business Day (as defined below) shall be made
on the next succeeding Business Day (except that if the Base Rate specified
above is LIBOR, and such day falls in the next succeeding calendar month, such
payment will be made on the next preceding Business Day) as described on the
reverse hereof. For purposes of this Security, unless otherwise specified on the
face hereof, "Business Day" means any day that is not a Saturday or Sunday and
that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The
City of New York; provided, however, that, if the Specified Currency shown above
is a Foreign Currency, such day is also not a day on which commercial banks are
authorized or required by law, regulation or executive order to close in the
Principal Financial Center (as defined below) of the country issuing the
Specified Currency (or, if the Specified Currency is the euro, such day is also
a day on which the Trans-European Automated Real-Time Gross Settlement Express
Transfer (TARGET) System is open); provided further that, with respect to
Securities as to which LIBOR is an applicable Base Rate, such day is also a
London Business Day. "London Business Day" means a day on which

<PAGE>   5
                                        3

commercial banks are open for business (including dealings in the LIBOR Currency
(as defined below)) in London. "Principal Financial Center" means (i) the
capital city of the country issuing the Specified Currency or the Indexed
Currency, as the case may be, or (ii) the capital city of the country to which
the LIBOR Currency relates, as applicable, except, in the case of (i) or (ii)
above, that with respect to United States dollars, Australian dollars, Canadian
dollars, Deutsche marks, Dutch guilders, Portuguese escudos, South African rand
and Swiss francs, the "Principal Financial Center" shall be The City of New
York, Sydney and (solely in the case of the Specified Currency) Melbourne,
Toronto, Frankfurt, Amsterdam, London (solely in the case of the LIBOR
Currency), Johannesburg and Zurich, respectively.

                  Interest on this Security will accrue from, and including, the
immediately preceding Interest Payment Date to which interest has been paid or
duly provided for (or from, and including, the Original Issue Date if no
interest has been paid or duly provided for) to, but excluding, the applicable
Interest Payment Date or the Maturity Date, as the case may be (each, an
"Interest Period"). The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture
and subject to certain exceptions described herein (referred to on the reverse
hereof), be paid to the person (the "Holder") in whose name this Security (or
one or more Predecessor Securities) is registered at the close of business on
the fifteenth day (whether or not a Business Day) next preceding such Interest
Payment Date (a "Regular Record Date"); provided, however, that, if this
Security was issued between a Regular Record Date and the initial Interest
Payment Date relating to such Regular Record Date, interest for the period
beginning on the Original Issue Date and ending on such initial Interest Payment
Date shall be paid on the Interest Payment Date following the next succeeding
Regular Record Date to the Holder hereof on such Regular Record Date; and
provided further that interest payable on the Maturity Date will be payable to
the person to whom the principal hereof shall be payable. Any such interest not
so punctually paid or duly provided for on any Interest Payment Date other than
the Maturity Date ("Defaulted Interest") will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a special record date (the "Special Record Date")
for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to the Holder of this Security not less than ten days
prior to such Special Record Date, or may be paid at any time in any other
lawful manner, all as more fully provided in the Indenture.

                  Unless otherwise specified above, all payments in respect of
this Security will be made in U.S. dollars regardless of the Specified Currency
shown above unless the Holder hereof makes the election described below. If the
Specified Currency shown above is other than U.S. dollars, the Exchange Rate
Agent (referred to on the reverse hereof) will arrange to convert any such
amounts so payable in respect hereof into U.S. dollars in the manner described
on the reverse hereof; provided, however, that the Holder hereof may, if so
indicated above, elect to receive all or a specified portion of any payment of
principal, premium, if any, and/or interest, if

<PAGE>   6
                                        4

any, in respect of this Security in such Specified Currency by delivery of a
written request to the corporate trust office of the Trustee in The City of New
York, on or prior to the applicable Regular Record Date or at least fifteen days
prior to the Maturity Date, as the case may be. Such request may be in writing
(mailed or hand delivered) or by cable, telex or other form of facsimile
transmission. The Holder hereof may elect to receive payment in such Specified
Currency for all principal, premium, if any, and interest payments, if any, and
need not file a separate election for each payment. Such election will remain in
effect until revoked by written notice to the Trustee, but written notice of any
such revocation must be received by the Trustee on or prior to the applicable
Regular Record Date or at least fifteen days prior to the Maturity Date, as the
case may be.

                  Notwithstanding the foregoing, if the Company determines that
the Specified Currency is not available for making payments in respect hereof
due to the imposition of exchange controls or other circumstances beyond the
Company's control, or is no longer used by the government of the country issuing
such currency or for the settlement of transactions by public institutions of or
within the international banking community, then the Holder hereof may not so
elect to receive payments in the Specified Currency and any such outstanding
election shall be automatically suspended, until the Company determines that the
Specified Currency is again available for making such payments. Any payment made
under such circumstances in U.S. dollars where the required payment is in a
Specified Currency will not constitute a default under the Indenture.

                  In the event of an official redenomination of the Specified
Currency, the obligations of the Company with respect to payments on this
Security shall be deemed, immediately following such redenomination, to provide
for payment of that amount of redenominated currency representing the amount of
such obligations immediately before such redenomination. Except as set forth
above, in no event shall any adjustment be made to any amount payable hereunder
as a result of any change in the value of the Specified Currency shown above
relative to any other currency due solely to fluctuations in exchange rates.

                  Until this Security is paid in full or payment therefor in
full is duly provided for, the Company will at all times maintain a Paying Agent
(which Paying Agent may be the Trustee) in The City of New York (which, unless
otherwise specified above, shall be the "Place of Payment"). The Company has
initially appointed The Chase Manhattan Bank, at its office in The City of New
York as Paying Agent.

                  Unless otherwise shown above, payment of interest on this
Security (other than on the Maturity Date) will be made by check mailed to the
registered address of the Holder hereof as of the Regular Record Date; provided,
however, that, if (i) the Specified Currency is U.S. dollars and this is a
Global Security (as defined on the reverse hereof) or (ii) the Specified
Currency is a Foreign Currency, and the Holder has elected to receive payments
in such Specified Currency as

<PAGE>   7

                                        5

provided for above, such interest payments will be made by transfer of
immediately available funds, but only if appropriate wire transfer instructions
have been received in writing by the Trustee on or prior to the applicable
Regular Record Date. Simultaneously with any election by the Holder hereof to
receive payments in respect hereof in the Specified Currency (if other than U.S.
dollars), such Holder may provide appropriate wire transfer instructions to the
Trustee, and all such payments will be made in immediately available funds to an
account maintained by the payee with a bank, but only if such bank has
appropriate facilities therefor. Unless otherwise specified above, the principal
hereof (and premium, if any) and interest hereon payable on the Maturity Date
will be paid in immediately available funds upon surrender of this Security at
the office of the Trustee maintained for that purpose in the Borough of
Manhattan, The City of New York (or at such other location as may be specified
above). The Company will pay any administrative costs imposed by banks in making
payments in immediately available funds but, except as otherwise provided under
Additional Amounts above, any tax, assessment or governmental charge imposed
upon payments will be borne by the Holders of the Securities in respect of which
such payments are made.

                  Interest on this Security, if any, will be computed on the
basis of a 360-day year of twelve 30-day months.

                  REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

<PAGE>   8

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

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

                                         EATON CORPORATION

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

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

[CORPORATE SEAL]

Attest:
       -------------------------
       Name:
       Title: Secretary

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Dated:                                THE CHASE MANHATTAN BANK,
                                              as Trustee

                                              By:
                                                  -----------------------------
                                                      Authorized Officer

<PAGE>   9

                                [REVERSE OF NOTE]

                                EATON CORPORATION
                                MEDIUM-TERM NOTE

                  Section 1. General. This Security is one of a duly authorized
issue of securities (herein called the "Securities") of the Company, issued and
to be issued in one or more series under an indenture, dated as of April 1,
1994, as it may be supplemented from time to time (herein called the
"Indenture"), between the Company and The Chase Manhattan Bank (formerly known
as Chemical Bank), Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture with respect to a series of which this
Security is a part), to which Indenture and all indentures supplemental thereto,
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof limited in aggregate principal amount to
U.S.$800,000,000 (or the equivalent thereof in one or more foreign currencies)
or such other principal amount as shall be provided pursuant to the Indenture.

                  Section 2. Payments. If the Specified Currency is other than
U.S. dollars and the Holder hereof fails to elect payment in such Specified
Currency in accordance with the procedures set forth on the face hereof, the
amount of U.S. dollar payments to be made in respect hereof will be determined
by the Exchange Rate Agent specified on the face hereof or a successor thereto
(the "Exchange Rate Agent") based on the highest bid quotation in The City of
New York at approximately 11:00 A.M., New York City time, on the second Business
Day preceding the applicable payment date received by the Exchange Rate Agent
from three recognized foreign exchange dealers (one of whom may be the Exchange
Rate Agent) selected by the Exchange Rate Agent and approved by the Company for
the purchase by the quoting dealer of the Specified Currency for U.S. dollars
for settlement on such payment date in the aggregate amount of the Specified
Currency payable to all Holders of Securities scheduled to receive U.S. dollar
payments and at which the applicable dealer commits to execute a contract. If
three such bid quotations are not available, payments will be made in the
Specified Currency.

                  If the Specified Currency is other than U.S. dollars and the
Holder hereof has elected payment in such Specified Currency in accordance with
the procedures set forth on the face hereof and the Specified Currency is not
available due to the imposition of exchange controls or to other circumstances
beyond the Company's control, the Company will be entitled to satisfy its
obligations to the Holder of this Security by making such payment in U.S.
dollars on the basis of the noon buying rate in The City of New York for cable
transfers of such Specified Currency as certified for customs purposes (or, if
not so certified as otherwise determined) by the Federal Reserve Bank of New
York (the "Market Exchange Rate") as computed by the Exchange Rate Agent on the
second Business Day prior to the applicable payment date or, if the Market

<PAGE>   10

                                        2

Exchange Rate is then not available, on the basis of the most recently available
Market Exchange Rate or as otherwise indicated above. Any payment made under
such circumstances in U.S. dollars where the required payment is in a Specified
Currency will not constitute a default under the Indenture.

                  All determinations referred to above made by the Exchange Rate
Agent shall be at its sole discretion (except to the extent expressly provided
that any determination is subject to approval by the Company) and, in the
absence of manifest error, shall be conclusive for all purposes and binding on
the Holder of this Security, and the Exchange Rate Agent shall have no liability
therefor.

                  All currency exchange costs will be borne by the Company.

                  Section 3. Interest Rate Calculations. Unless otherwise set
forth on the face hereof, the following provisions of this Section 3 shall apply
to the calculation of interest on this Security. If the first Interest Reset
Date is later than the Original Issue Date, this Security will bear interest
from its Original Issue Date to the first Interest Reset Date at the Initial
Interest Rate set forth on the face hereof. Thereafter, the interest rate hereon
for each Interest Reset Period (as defined below) will be determined by
reference to the Base Rate set forth on the face hereof, as adjusted by the
Spread, the Spread Multiplier or other formula, if any, set forth on the face
hereof.

                  As set forth on the face hereof, this Security may also have
either or both of the following: (i) a maximum limitation, or ceiling, on the
rate at which interest may accrue during any Interest Period (as defined below)
("Maximum Interest Rate"); and (ii) a minimum limitation, or floor, on the rate
at which interest may accrue during any Interest Period ("Minimum Interest
Rate"). In addition to any Maximum Interest Rate that may be set forth on the
face hereof, the interest rate on this Security will in no event be higher than
the maximum rate permitted by New York law, as the same may be modified by
United States law of general application.

                  The rate of interest hereon will be reset daily, weekly,
monthly, quarterly, semiannually or annually or at another interval (each, an
"Interest Reset Period"), as set forth on the face hereof. The date or dates on
which interest will be reset (each, an "Interest Reset Date") will be, if this
Security resets (i) daily, each Business Day; (ii) weekly, the Wednesday of each
week (unless the Base Rate set forth on the face hereof is the Treasury Rate, in
which case, the Tuesday of each week (except as provided below)); (iii) monthly,
the third Wednesday of each month; (iv) quarterly, the third Wednesday of each
of the four months set forth on the face hereof; (v) semiannually, the third
Wednesday of each of the two months set forth on the face hereof; and (vi)
annually, the third Wednesday of the month of each year set forth on the face
hereof; provided, however, that (a) if the first Interest Reset Date is later
than the Original Issue

<PAGE>   11

                                        3

Date, the interest rate in effect from the Original Issue Date to the first
Interest Reset Date will be the Initial Interest Rate as set forth on the face
hereof and (b) the interest rate in effect for the ten days immediately prior to
the Maturity Date will be that in effect on the tenth day preceding the Maturity
Date. If the Base Rate set forth on the face hereof is the Treasury Rate and a
Treasury auction shall fall on the Interest Reset Date for this Security, then
such Interest Reset Date shall instead be the first Business Day immediately
following such Treasury auction. If any Interest Reset Date would otherwise be a
day that is not a Business Day, such Interest Reset Date shall be postponed to
the next succeeding Business Day, except that, if the Base Rate set forth on the
face hereof is LIBOR, if such Business Day is in the next succeeding calendar
month, such Interest Reset Date shall be the immediately preceding Business Day.

                  The interest payable hereon on each Interest Payment Date and
on the Maturity Date shall be the amount of interest accrued from and including
the Original Issue Date or the next preceding Interest Payment Date in respect
of which interest, if any, has been paid or duly provided for, as the case may
be, to, but excluding, the next succeeding Interest Payment Date or the Maturity
Date, as the case may be, (each such period, an "Interest Period"). If the
Maturity Date falls on a day which is not a Business Day, the payment of
principal, premium, if any, and interest, if any, with respect to the Maturity
Date will be paid on the next succeeding Business Day with the same force and
effect as if made on the Maturity Date, and no interest shall accrue on the
amount so payable as a result of such delayed payment. If an Interest Payment
Date other than the Maturity Date falls on a day that is not a Business Day,
such Interest Payment Date will be postponed to the next day that is a Business
Day and interest will accrue for the period of such postponement (except if the
Base Rate specified above is LIBOR, and such day falls in the next succeeding
calendar month, such Interest Payment Date will be advanced to the immediately
preceding Business Day), it being understood that, to the extent this sentence
is inconsistent with Section 112 of the Indenture, the provisions of this
sentence shall apply in lieu of such Section.

                  Accrued interest will be calculated by multiplying the
principal amount hereof by an accrued interest factor. Such accrued interest
factor will be computed by adding the interest factor calculated for each day in
the Interest Period or from the date from which accrued interest is being
calculated. The interest factor for each such day is computed by dividing the
interest rate applicable on such day by 360, if the Base Rate set forth on the
face hereof is the CD Rate, Commercial Paper Rate, Federal Funds Rate, Prime
Rate or LIBOR (each as described below), or by the actual number of days in the
year, if the Base Rate set forth on the face hereof is the Treasury Rate or the
CMT Rate (each as described below). The interest rate applicable to any day that
is an Interest Reset Date is the interest rate as determined, in accordance with
the procedures hereinafter set forth, with respect to the Interest Determination
Date (as defined below) pertaining to such Interest Reset Date. The interest
rate applicable to any other day is the interest rate for the immediately
preceding Interest Reset Date (or, if none, the Initial Interest Rate, as set
forth on the face hereof).

<PAGE>   12

                                        4

                  All percentages resulting from any calculation with respect
hereto will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward
(e.g., 7.123455% (or 0.07123455) being rounded to 7.123455% (or 0.07123455) and
7.12345% (or 0.0712345) being rounded to 7.12345% (or 0.0712345)), and all
currency amounts used in or resulting from such calculation will be rounded to
the nearest one-hundredth of a unit (with five one-thousandths of a unit being
rounded upwards).

                  Interest will be payable on, if this Security resets (i)
daily, weekly or monthly, the third Wednesday of each month; (ii) quarterly, the
third Wednesday of the four months set forth on the face hereof; (iii)
semiannually, the third Wednesday of the two months set forth on the face
hereof; and (iv) annually, the third Wednesday of the month set forth on the
face hereof (each, an "Interest Payment Date"), and in each case, on the
Maturity Date.

                  If the Base Rate set forth on the face hereof is the CD Rate,
the CMT Rate, the Commercial Paper Rate, the Federal Funds Rate or the Prime
Rate, the "Interest Determination Date" pertaining to an Interest Reset Date for
this Security will be the second Business Day immediately preceding such
Interest Reset Date; if the Base Rate set forth on the face hereof is LIBOR, the
"Interest Determination Date" pertaining to an Interest Reset Date for this
Security will be the second London Business Day immediately preceding such
Interest Reset Date unless the Designated LIBOR Currency is British pounds
sterling, in which case the "Interest Determination Date" will be such Interest
Reset Date; and if the Base Rate set forth on the face hereof is the Treasury
Rate, the "Interest Determination Date" pertaining to an Interest Reset Date for
this Security will be the day of the week in which such Interest Reset Date
falls on which Treasury bills (as defined below) would normally be auctioned.
Treasury bills are usually sold at auction on Monday of each week, unless that
day is a legal holiday, in which case the auction is usually held on the
following Tuesday, except that sometimes such auction may be held on the
preceding Friday. If, as the result of a legal holiday, an auction is so held on
the preceding Friday, such Friday will be the Interest Determination Date
pertaining to the Interest Reset Date occurring in the next succeeding week.

                  Unless otherwise set forth on the face hereof, the
"Calculation Date", where applicable, pertaining to an Interest Determination
Date is the earlier of (i) the tenth calendar day after such Interest
Determination Date, or if any such day is not a Business Day, the next
succeeding Business Day and (ii) the Business Day immediately preceding the
applicable Interest Payment Date or the Maturity Date, as the case may be.

                  The Company will appoint and enter into an agreement with an
agent (a "Calculation Agent") to calculate the rate of interest on the
Securities of this series which bear interest at a floating rate. Unless
otherwise set forth on the face hereof, The Chase Manhattan Bank will be the
Calculation Agent. At the request of the Holder hereof, the Calculation Agent

<PAGE>   13
                                        5

will provide the interest rate then in effect and, if determined, the interest
rate that will become effective on the next Interest Reset Date.

                  Subject to applicable provisions of law and except as
specified herein, with respect to each Interest Determination Date, the rate of
interest shall be the rate determined by the Calculation Agent in accordance
with the provisions of the applicable heading below.

                  Determination of CD Rate. If the Base Rate set forth on the
face hereof is the CD Rate, this Security will bear interest for each Interest
Reset Period at the interest rate calculated with reference to the CD Rate and
the Spread, Spread Multiplier or other formula, if any, set forth on the face
hereof. Unless otherwise set forth on the face hereof, the "CD Rate" means, with
respect to any Interest Determination Date pertaining thereto, the rate on such
date for negotiable certificates of deposit having the Index Maturity set forth
on the face hereof as published in H.15(519) (as defined below), under the
heading "CDs (secondary market)" or, if not yet published by 3:00 P.M., New York
City time, on the Calculation Date pertaining to such Interest Determination
Date, the CD Rate will be the rate on such Interest Determination Date for
negotiable certificates of deposit having the Index Maturity set forth on the
face hereof as published in H.15 Daily Update (as defined below), or such other
recognized electronic source used for the purpose of displaying such rate, under
the caption "CDs (secondary market)". If by 3:00 P.M., New York City time, on
the Calculation Date pertaining to such Interest Determination Date such rate is
not yet published in H.15(519), H.15 Daily Update or such other recognized
electronic source, the CD Rate on such Interest Determination Date will be
calculated by the Calculation Agent and will be the average of the secondary
market offered rates as of 10:00 A.M., New York City time, on such Interest
Determination Date, of three leading non-bank dealers in negotiable U.S. dollar
certificates of deposit in The City of New York selected by the Calculation
Agent (after consultation with the Company) for negotiable certificates of
deposit of major United States money market banks of the highest credit standing
(in the market for negotiable certificates of deposit) having a remaining
maturity closest to the Index Maturity set forth on the face hereof in a
denomination of U.S. $5,000,000; provided, however, that, if fewer than three
dealers are quoting as mentioned in this sentence, the interest rate for the
period commencing on the Interest Reset Date following such Interest
Determination Date will be the interest rate in effect on such Interest
Determination Date. "H.15(519)" means the weekly statistical release designated
as such, or any successor publication, published by the Board of Governors of
the Federal Reserve System. "H.15 Daily Update" means the daily update of
H.15(519), available through the world-wide web site of the Board of Governors
of the Federal Reserve System at http://www.bog.frb.fed.us/releases/h15/update,
or any successor site or publication.

                  Determination of Commercial Paper Rate. If the Base Rate set
forth on the face hereof is the Commercial Paper Rate, this Security will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the Commercial Paper Rate and the Spread,

<PAGE>   14
                                        6

Spread Multiplier or other formula, if any, set forth on the face hereof. Unless
otherwise set forth on the face hereof, the "Commercial Paper Rate" means, with
respect to any Interest Determination Date pertaining thereto, the Money Market
Yield (calculated as described below) of the rate on such date for commercial
paper having the Index Maturity set forth on the face hereof, as such rate shall
be published in H.15(519) under the caption "Commercial Paper -- Nonfinancial"
or, if not yet published by 3:00 P.M., New York City time, on the Calculation
Date pertaining to such Interest Determination Date, the Commercial Paper Rate
shall be the Money Market Yield of the rate on such Interest Determination Date
for commercial paper having the Index Maturity set forth on the face hereof as
published in H.15 Daily Update, or such other recognized electronic source used
for the purpose of displaying such rate, under the caption "Commercial Paper --
Nonfinancial". If by 3:00 P.M., New York City time, on the Calculation Date
pertaining to such Interest Determination Date such rate is not yet published in
H.15(519), H.15 Daily Update or such other recognized electronic source, the
Commercial Paper Rate on such Interest Determination Date shall be calculated by
the Calculation Agent and shall be the Money Market Yield of the average of the
offered rates as of 11:00 A.M., New York City time, on such Interest
Determination Date of three leading dealers in U.S. dollar commercial paper in
The City of New York selected by the Calculation Agent (after consultation with
the Company) for commercial paper having the Index Maturity set forth on the
face hereof placed for an industrial issuer whose bond rating is "Aa", or the
equivalent, from a nationally recognized securities rating agency; provided,
however, that, if fewer than three dealers are quoting as mentioned in this
sentence, the interest rate for the period commencing on the Interest Reset Date
following such Interest Determination Date will be the interest rate in effect
on such 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 applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal; and "M" refers to the actual
number of days in the Interest Period for which interest is being calculated.

                  Determination of Federal Funds Rate. If the Base Rate set
forth on the face hereof is the Federal Funds Rate, this Security will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the Federal Funds Rate and the Spread, Spread Multiplier or other
formula, if any, set forth on the face hereof. Unless otherwise set forth on the
face hereof, the "Federal Funds Rate" means, with respect to any Interest
Determination Date pertaining thereto, the rate on such date for federal funds
as published in H.15(519) under the caption "Federal Funds (Effective)" as such
rate is displayed on Telerate Page 120 (or any other

<PAGE>   15
                                        7

page as may replace such page on such service) ("Telerate Page 120"). If such
rate does not appear on Telerate Page 120 or is not yet published in H.15(519)
by 3:00 P.M., New York City time, on the Calculation Date pertaining to such
Interest Determination Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying such rate, under
the caption "Federal Funds (Effective)". If by 3:00 P.M., New York City time, on
the Calculation Date pertaining to such Interest Determination Date such rate
does not appear on Telerate Page 120 or is not yet published in H.15(519), H.15
Daily Update or such other recognized electronic source, the Federal Funds Rate
for such Interest Determination Date will be calculated by the Calculation Agent
and will be the average of the rates for the last transaction in overnight
Federal Funds arranged by three leading dealers of Federal Funds transactions in
The City of New York, which dealers have been selected by the Calculation Agent
(after consultation with the Company), as of 9:00 A.M., New York City time, on
such Interest Determination Date; provided, however, that, if fewer than three
dealers are quoting as mentioned in this sentence, the interest rate for the
period commencing on the Interest Reset Date following such Interest
Determination Date will be the interest rate in effect on such Interest
Determination Date.

                  Determination of LIBOR. If the Base Rate set forth on the face
hereof is LIBOR, this Security will bear interest for each Interest Reset Period
at the interest rate calculated with reference to LIBOR and the Spread, Spread
Multiplier or other formula, if any, set forth on the face hereof. Unless
otherwise set forth on the face hereof, "LIBOR" means the rate determined by the
Calculation Agent in accordance with the following provisions:

                  (i) If "LIBOR Reuters" is specified on the face hereof, LIBOR
         will be the average of the offered rates for deposits in the LIBOR
         Currency having the Index Maturity set forth on the face hereof on the
         applicable Interest Reset Date, as such rates appear on the Designated
         LIBOR Page as of 11:00 A.M., London time, on that Interest
         Determination Date, if at least two such offered rates appear on the
         Designated LIBOR Page.

                  (ii) If "LIBOR Telerate" is specified on the face hereof,
         LIBOR will be the rate for deposits in the LIBOR Currency having the
         Index Maturity set forth on the face hereof on the applicable Interest
         Reset Date, as such rate appears on the Designated LIBOR Page as of
         11:00 A.M., London time, on that Interest Determination Date. If such
         rate does not appear, LIBOR for such Interest Determination Date will
         be determined as described in (iii) below.

                  (iii) If the Designated LIBOR Page by its terms provides only
         for a single rate, that single rate will be used regardless of whether
         the foregoing provisions require more than one rate. With respect to an
         Interest Determination Date, if LIBOR Reuters is the applicable method
         for determining LIBOR and fewer than two offered rates (or no rate, if

<PAGE>   16
                                        8

         applicable) appear on the Designated LIBOR Page as specified in (i)
         above or if LIBOR Telerate is the applicable method for determining
         LIBOR and no rate appears on the Designated LIBOR Page as specified in
         (ii) above, then LIBOR will be determined on the basis of the offered
         rates at which deposits in the LIBOR Currency for the period of the
         Index Maturity set forth on the face hereof on the Interest
         Determination Date and in a principal amount that is representative of
         a single transaction in that market at that time are offered by four
         major banks in the London interbank market at approximately 11:00 AM.,
         London time, for the period commencing on the Interest Reset Date to
         prime banks in the London interbank market. The Calculation Agent will
         select the four banks and request the principal London office of each
         of those banks to provide a quotation of its rate for deposits in the
         LIBOR Currency. If at least two quotations are provided, LIBOR for that
         Interest Determination Date will be the average of those quotations. If
         fewer than two quotations are provided as mentioned above, LIBOR will
         be the average of the rates quoted by three major banks in the
         Principal Financial Center selected by the Calculation Agent at
         approximately 11:00 A.M. in the Principal Financial Center, on the
         Interest Determination Date for loans to leading European banks in the
         LIBOR Currency having the Index Maturity set forth on the face hereof,
         for the period commencing on the Interest Reset Date and in a principal
         amount that is representative for a single transaction in the LIBOR
         Currency in that market at that time. The Calculation Agent will select
         the three banks referred to above. If fewer than three banks selected
         by the Calculation Agent are quoting as mentioned above, the interest
         rate for the period commencing on the Interest Reset Date following
         such Interest Determination Date will be the interest rate in effect on
         such Interest Determination Date.

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

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

                   Determination of Prime Rate. If the Base Rate set forth on
the face hereof is the Prime Rate, this Security will bear interest for each
Interest Reset Period at the interest rate

<PAGE>   17
                                        9

calculated with reference to the Prime Rate and the Spread, Spread Multiplier or
other formula, if any, set forth on the face hereof. Unless otherwise set forth
on the face hereof, the "Prime Rate" means, with respect to any Interest
Determination Date pertaining thereto, the rate on such date as published in
H.15(519) under the caption "Bank Prime Loan" or, if not yet published by 3:00
P.M., New York City time, on the Calculation Date pertaining to such Interest
Determination Date, the rate on such Interest Determination Date as published in
H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "Bank Prime Loan."

                  If the rate is not published in H.15 (519), H.15 Daily Update
or another recognized electronic source by 3:00 P.M., New York City time, on the
Calculation Date, then the Calculation Agent will determine the Prime Rate to be
the average of the rates of interest publicly announced by each bank that
appears on the Reuters Screen US PRIME1 Page as that bank's prime rate or base
lending rate as in effect for that Interest Determination Date. If at least one
rate but fewer than four rates appear on the Reuters Screen US PRIME1 Page on
the Interest Determination Date, then the Prime Rate will be the average 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 the
Interest Determination Date by three major money center banks in the City of New
York selected by the Calculation Agent. If the banks selected by the Calculation
Agent are not quoting as mentioned above, the interest rate for the period
commencing on the Interest Reset Date following such Interest Determination Date
will be the interest rate in effect on such Interest Determination Date.

                  "Reuters Screen US PRIME1 Page" means the display designated
as Page "USPRIME1" on the Reuters Monitor Money Rates Service (or any successor
service, or such other page as may replace the USPRIME1 Page on that service)
for the purpose of displaying prime rates or base lending rates of major United
States banks.

                  Determination of Treasury Rate. If the Base Rate set forth on
the face hereof is the Treasury Rate, this Security will bear interest for each
Interest Reset Period at the interest rate calculated with reference to the
Treasury Rate and the Spread, Spread Multiplier or other formula, if any, set
forth on the face hereof. Unless otherwise set forth on the face hereof, the
"Treasury Rate" means, with respect to any Interest Determination Date
pertaining thereto, the rate for the auction of direct obligations of the United
States ("Treasury bills") held on such Interest Determination Date having the
Index Maturity set forth on the face hereof under the caption "INVESTMENT RATE"
on the display on Telerate on page 56 (or any other page as may replace such
page on such service) ("Telerate Page 56") or page 57 (or any other page as may
replace such page on such service) ("Telerate Page 57") by 3:00 P.M., New York
City time, on the Calculation date for that Interest Determination Date.

<PAGE>   18
                                       10

                  The following procedures will be followed if the Treasury Rate
cannot be determined as described above:

                  If the rate is not published by 3:00 P.M., New York City time,
on the Calculation Date, the Treasury Rate will be the Bond Equivalent Yield of
the auction rate of such Treasury bills as published in H.15 Daily Update or
such recognized electronic source used for the purpose of displaying such rate
under the caption "U.S. Government securities/ Treasury bills/Auction high."

                  If the rate is not published by 3:00 P.M., New York City time,
on the Calculation Date and cannot be determined as described in the immediately
preceding paragraph, the Treasury Rate will be the Bond Equivalent Yield of the
auction rate of such Treasury bills as otherwise announced by the United States
Department of Treasury.

                  If the results of the most recent auction of Treasury bills
having the Index Maturity set forth on the face hereof are not published or
announced as described above by 3:00 P.M., New York City time, on the
Calculation Date, or if no auction is held on the Interest Determination Date,
then the Treasury Rate will be the Bond Yield Equivalent on such Interest
Determination Date of Treasury bills having the Index Maturity set forth on the
face hereof as published in H.15(519) under the caption "U.S. Government
securities/Treasury bills/Secondary market" or, if not yet published by 3:00
p.m., New York City time, on the related Calculation Date, the rate on such
Interest Determination Date of such Treasury Bills as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying such rate, under the caption "U.S. Government securities/Treasury
bills/Secondary market."

                  If such rate is not published in H.15 (519), H.15 Daily Update
or another recognized electronic source, then the Calculation Agent will
determine the Treasury Rate to be the Bond Yield Equivalent of the average of
the secondary market bid rates, as of approximately 3:30 P.M., New York City
time, on the Interest Determination Date of three leading primary United States
government securities dealers for the issue of Treasury bills with a remaining
maturity closest to the Index Maturity set forth on the face hereof. The
Calculation Agent will select the three dealers referred to above.

                  If fewer than three dealers are quoting as described above,
the interest rate for the period commencing on the Interest Reset Date following
such Interest Determination Date will be the interest rate in effect on such
Interest Determination Date.

<PAGE>   19
                                       11

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

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

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

                  Determination of CMT Rate. If the Base Rate set forth on the
face hereof is the CMT Rate, this Security will bear interest for each Interest
Reset Period at the interest rate calculated with reference to the CMT Rate and
the Spread, Spread Multiplier, or other formula, if any, set forth on the face
hereof. Unless otherwise set forth on the face hereof, the "CMT Rate" means,
with respect to any Interest Determination Date pertaining thereto, the rate
displayed on the Designated CMT Telerate Page (as defined below) under the
caption ". . . Treasury Constant Maturities . . . Federal Reserve Board Release
H.15 . . . Mondays Approximately 3:45 P.M.", under the column for the Designated
CMT Maturity Index (as defined below) for (i) if the Designated CMT Telerate
Page is 7051 or any successor page, the rate on such Interest Determination Date
and (ii) if the Designated CMT Telerate Page is 7052 or any successor page, the
rate for the weekly or the monthly average, as applicable, ended immediately
preceding the week or month in which the related Interest Determination Date
occurs. If such rate is no longer displayed on the relevant page, or if not
displayed by 3:00 P.M., New York City time, on the Calculation Date pertaining
to such Interest Determination Date, then the interest rate for such Interest
Determination Date shall be the rate for the Designated CMT Maturity Index as
published in H.15(519). If such rate is no longer published, or if not published
by 3:00 P.M., New York City time, on the Calculation Date pertaining to such
Interest Determination Date, then the interest rate for such Interest
Determination Date shall be the rate for the Designated CMT Maturity Index (or
other United States Treasury rate for the Designated CMT Maturity Index) as may
then be published by either the Board of Governors of the Federal Reserve System
or the United States Department of the Treasury that the Calculation Agent
determines (with the concurrence of the Company) to be comparable to the rate
formerly displayed on the Designated CMT Telerate Page and published in
H.15(519). If such information is not provided by 3:00 P.M., New York City time,
on the Calculation Date pertaining to such Interest Determination Date, then the
interest rate for such Interest Determination Date shall be calculated by the
Calculation Agent and shall be a yield to maturity, based on the arithmetic
average of the secondary market closing offer side prices as of approximately
3:30 P.M., New York City time, on such Interest Determination Date, reported by
three leading primary United States government securities dealers (each, a
"Reference Dealer") in The City of New York, for the most recently issued direct
noncallable fixed rate obligations of the United States ("U.S. Treasury Notes")
with an original maturity of approximately the Designated CMT Maturity Index and
a

<PAGE>   20
                                       12

remaining term to maturity of not less than such Designated CMT Maturity Index
minus one year. The three Reference Dealers shall be determined by (i) the
selection of five Reference Dealers by the Calculation Agent (after consultation
with the Company) and (ii) the elimination of the Reference Dealers providing
the highest (or, in the event of equality, one of the highest) and the lowest
(or, in the event of equality, one of the lowest) quotations for such Interest
Determination Date. If the Calculation Agent cannot obtain three such U.S.
Treasury Note quotations, the interest rate for such Interest Determination Date
shall be calculated by the Calculation Agent and shall be a yield to maturity
based on the arithmetic average of the secondary market offer side prices as of
approximately 3:30 P.M., New York City time, on the Interest Determination Date
reported, according to their written records, by three Reference Dealers in The
City of New York, selected in the manner described above, for U.S. Treasury
Notes with an original maturity of the number of years that is the next highest
to the Designated CMT Maturity Index and a remaining term to maturity closest to
the Designated CMT Maturity Index, which has an outstanding balance of at least
$100 million. If only three or four of such Reference Dealers are quoting as
described above, then the interest rate shall be based on the arithmetic average
of the offer side prices so obtained from all such Reference Dealers, without
eliminating the Reference Dealers providing the highest and the lowest of such
quotes. If fewer than three such Reference Dealers are quoting as described
above, the interest rate for the period commencing on the Interest Reset Date
following such Interest Determination Date will be the interest rate in effect
on such Interest Determination Date. If two such U.S. Treasury Notes have
remaining terms to maturity equally close to the Designated CMT Maturity Index,
the quotes for the U.S. Treasury Note with the shorter remaining term to
maturity shall be used.

                  "Designated CMT Telerate Page" means the display on Telerate
         on the page set forth on the face hereof (or any other page as may
         replace such page on that service for the purpose of displaying
         treasury constant maturities as reported in H.15(519)). If no such page
         is so specified, the Designated CMT Telerate Page shall be 7052.

                  "Designated CMT Maturity Index" means the original period to
         maturity of the U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20
         or 30 years) specified on the face hereof with respect to which the CMT
         Rate will be calculated. If no such maturity is so specified, the
         Designated CMT Maturity Index shall be two years.

                   References herein to "U.S. dollars" or "U.S. $" or "$" are to
the currency of the United States of America.

                  Section 4. Redemption. If so specified on the face hereof, the
Company may at its option redeem this Security in whole or from time to time in
part in increments of $1,000 (provided that any remaining principal amount of
this Security shall not be less than the Minimum Denomination specified on the
face hereof) on or after the date designated as the Initial Redemption Date on
the face hereof at 100% of the unpaid principal amount hereof or the

<PAGE>   21
                                       13

portion thereof redeemed (or, if this Security is a Discount Security, such
lesser amount as is provided for below) multiplied by the Initial Redemption
Percentage specified on the face hereof, together with accrued interest to the
Redemption Date. Such Initial Redemption Percentage shall decline at each
anniversary of the Initial Redemption Date by an amount equal to the Annual
Redemption Percentage Reduction, if any, specified on the face hereof until the
Redemption Price is 100% of the unpaid principal amount hereof. The Company may
exercise such option by causing the Trustee to mail a notice of such redemption
at least 30 but not more than 60 days prior to the Redemption Date. In the event
of redemption of this Security in part only, a new Security or Securities for
the unredeemed portion hereof shall be issued in the name of the Holder hereof
upon the cancellation hereof. If less than all of the Securities with like tenor
and terms to this Security are to be redeemed, the Securities to be redeemed
shall be selected by the Trustee by such method as the Trustee shall deem fair
and appropriate. However, if less than all the Securities of the series with
differing tenor and terms to this Security are to be redeemed then the Company
in its sole discretion shall select the particular Securities to be redeemed and
shall notify the Trustee in writing thereof at least 45 days prior to the
relevant Redemption Date.

                  Section 5. Repayment. If so specified on the face hereof, this
Security shall be repayable prior to the Stated Maturity Date at the option of
the Holder on each applicable Optional Repayment Date shown on the face hereof
at a repayment price equal to 100% of the principal amount to be repaid,
together with accrued interest to the Repayment Date. In order for this Security
to be repaid, the Trustee must receive at least 30 but not more than 45 days
prior to an Optional Repayment Date, this Security with the form attached hereto
entitled "Option to Elect Repayment" duly completed. Any tender of this Security
for repayment shall be irrevocable. The repayment option may be exercised by the
Holder of this Security in whole or in part in increments of $1,000 (provided
that any remaining principal amount of this Security shall not be less than the
Minimum Denomination specified on the hereof). Upon any partial repayment, this
Security shall be canceled and a new Security or Securities for the remaining
principal amount hereof shall be issued in the name of the Holder of this
Security.

                  Section 6. Discount Securities. If this Security (such
Security being referred to as a "Discount Security") (a) has been issued at an
Issue Price lower, by more than a de minimis amount (as determined under United
States federal income tax rules applicable to original issue discount
instruments), than the stated redemption price at maturity (as defined below)
hereof and (b) would be considered an original issue discount security for
United States federal income tax purposes, then the amount payable on this
Security in the event of redemption by the Company, repayment at the option of
the Holder or acceleration of the maturity hereof, in lieu of the principal
amount due at the Stated Maturity Date hereof, shall be the Amortized Face
Amount (as defined below) of this Security as of the date of such redemption,
repayment or acceleration. The "Amortized Face Amount" of this Security shall be
the amount equal to the sum of (a) the Issue Price (as set forth on the face
hereof) plus (b) the aggregate of the portions of the original issue discount
(the excess of the amounts considered as part of the "stated redemption price at

<PAGE>   22
                                       14

maturity" of this Security within the meaning of Section 1273(a)(2) of the
Internal Revenue Code of 1986, as amended (the "Code"), whether denominated as
principal or interest, over the Issue Price of this Security) which shall
theretofore have accrued pursuant to Section 1272 of the Code (without regard to
Section 1272(a)(7) of the Code) from the date of issue of this Security to the
date of determination, minus (c) any amount considered as part of the "stated
redemption price at maturity" of this Security which has been paid on this
Security from the date of issue to the date of determination.

                  Section 7. Modification and Waivers; Obligation of the Company
Absolute. The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series. Such
amendment may be effected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal
amount of all Outstanding Securities of each series affected thereby. The
Indenture also contains provisions permitting the Holders of not less than a
majority in principal amount of the Outstanding Securities of any series at the
time, on behalf of the Holders of all Outstanding Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture.
Provisions in the Indenture also permit the Holders of not less than a majority
in principal amount of all Outstanding Securities of any series to waive on
behalf of all of the Holders of Securities of such series certain past defaults
under the Indenture and their consequences. Any such consent or waiver shall be
conclusive and binding upon the Holder of this Security and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

                  The Securities are unsecured and rank pari passu with all
other unsecured and unsubordinated indebtedness of the Company.

                  No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place and rate, and
in the Specified Currency herein prescribed, except as set forth in Section 2 on
the reverse hereof.

                  Section 8. Defeasance and Covenant Defeasance. The Indenture
contains provisions for defeasance at any time of (a) the entire indebtedness of
the Company on this Security and (b) certain restrictive covenants and the
related defaults and Events of Default, upon compliance by the Company with
certain conditions set forth therein, which provisions apply to this Security,
unless otherwise specified on the face hereof.

<PAGE>   23
                                       15

                  Section 9. Minimum Denominations. Authorized Denominations.
Unless otherwise provided on the face hereof, this Security is issuable only in
registered form without coupons in denominations of $1,000 or any amount in
excess thereof which is an integral multiple of $1,000. If this Security is
denominated in a Specified Currency other than U.S. dollars or is a Discount
Security, this Security shall be issuable in the denominations set forth on the
face hereof.

                  Section 10. Registration of Transfer. As provided in the
Indenture and subject to certain limitations herein and therein set forth, the
transfer of this Security is registrable in the Security Register upon surrender
of this Security for registration of transfer at a Place of Payment for the
series of Securities of which this Security forms a part, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series, of like authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  If the registered owner of this Security is the Depository
(such a Security being referred to as a "Global Security"), and (i) the
Depository is at any time unwilling or unable to continue as depository and a
successor depository is not appointed by the Company within 90 days following
notice to the Company, or (ii) an Event of Default occurs, the Company will
issue Securities in certificated form in exchange for this Global Security. In
addition, the Company may at any time, and in its sole discretion, determine not
to have Securities represented by a Global Security and, in such event, will
issue Securities in certificated form in exchange in whole for this Global
Security representing such Security. In any exchange pursuant to this paragraph,
the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of individual Securities of this series in
exchange for this Global Security, will authenticate and deliver individual
Securities of this series in certificated form in an aggregate principal amount
equal to the principal amount of this Global Security in exchange herefor.
Securities issued in exchange for this Global Security pursuant to this
paragraph shall be registered in such names and in such authorized denominations
as the Depository, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. None of the Company, the
Trustee, any Paying Agent or the Security Registrar will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests in this Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. For purposes of the Indenture, this Global Security
constitutes a Security issued in permanent global form. Securities so issued in
certificated form will be issued in denominations of $1,000 (or such other
Minimum Denomination specified on the face hereof) or any amount in excess
thereof which is an integral multiple of $1,000 (or such Minimum Denomination)
and will be issued in registered form only, without coupons.

<PAGE>   24
                                       16

                  As provided in the Indenture and subject to certain
limitations therein and herein set forth, this Security is exchangeable for a
like aggregate principal amount of Securities of this series of different
authorized denominations but otherwise having the same terms and conditions, as
requested by the Holder hereof surrendering the same.

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

                  Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Holder as the owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

                  Section 11. Events of Default. If an Event of Default with
respect to the Securities of the series of which this Security forms a part
shall have occurred and be continuing, the principal of this Security may be
declared due and payable in the manner and with the effect provided in the
Indenture.

                  Section 12. Defined Terms. All terms used in this Security
which are defined in the Indenture and are not otherwise defined herein shall
have the meanings assigned to them in the Indenture.

                  Section 13. Governing Law. Unless otherwise specified on the
face hereof, this Security shall be governed by and construed in accordance with
the law of the State of New York.

<PAGE>   25

                            OPTION TO ELECT REPAYMENT

                  The undersigned hereby irrevocably requests and instructs the
Company to repay this Security (or the portion thereof specified below),
pursuant to its terms, on the "Optional Repayment Date" first occurring after
the date of receipt of the within Security as specified below (the "Repayment
Date"), at a Repayment Price equal to 100% of the principal amount thereof,
together with interest thereon accrued to the Repayment Date, to the undersigned
at:

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

----------------------------------
(Please Print or Type Name and Address of the Undersigned.)

                  For this Option to Elect Repayment to be effective, this
Security with the Option to Elect Repayment duly completed must be received at
least 30 but not more than 45 days prior to the Optional Repayment Date (or, if
such Repayment Date is not a Business Day, the next succeeding Business Day) by
the Company at its office or agency in The City of New York, which will be
located initially at the office of the Trustee at 450 West 33rd Street, New
York, New York 10001-2697.

                  If less than the entire principal amount of the within
Security is to be repaid, specify the portion thereof (which shall be $1,000 or
an integral multiple thereof) which is to be repaid: $           .

                  If less than the entire principal amount of this Security is
to be repaid, specify the denomination(s) of the Security(ies) to be issued for
the unpaid amount ($1,000 or any integral multiple of $1,000; provided that any
remaining principal amount of this Security shall not be less than the Minimum
Denomination): $            .

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

<PAGE>   26
                                  -------------
                                  ABBREVIATIONS

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

                  TEN COM - as tenants in common
                  TEN ENT - as tenants by the entireties
                  JT TEN  - as joint tenants with right of survivorship and not
                            as tenants in common

                  UNIF GIFT MIN ACT -         Custodian
                                      -------------------------
                                     (Cust.)              (Minor)
                        Under Uniform Gifts to Minors Act
                        .................................
                                     (State)

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

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

PLEASE INSERT SOCIAL SECURITY OR OTHER
    IDENTIFYING NUMBER OF ASSIGNEE

_______________________________________
|                                     |
|                                     |
|_____________________________________|________________________________________
          Please print or type name and address, including zip code of assignee

--------------------------------------------
the within Security of EATON CORPORATION and all rights thereunder and does
hereby irrevocably constitute and appoint

                                                                       Attorney
-----------------------------------------------------------------------
to transfer the said Security on the books of the within-named Company, with
full power of substitution in the premises.

Dated
      -----------------

SIGNATURE GUARANTEED:
                     ----------------------------------

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

                                                      -----------------
                                            NOTICE: The signature to this
                                            assignment must correspond with the
                                            name as it appears upon the face of
                                            the Security in every particular,
                                            without alteration or enlargement or
                                            any change whatsoever.FORM OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF OLATHE
                              EMPLOYMENT AGREEMENT

         This Agreement is made  effective as of the ____ day of  _____________,
2000 by and between  First  Federal  Savings & Loan  Association  of Olathe (the
"Association"),  a  federally-chartered  stock  savings  association,  with  its
principal  administrative  office at 100 East Park Street,  Olathe, Kansas 66061
and Mitch Ashlock (the  "Executive").  Any  reference to "Company"  herein shall
mean First Federal of Olathe Bancorp, Inc., a Kansas-chartered  corporation,  or
any successor thereto.

         WHEREAS,  the  Association  wishes  to assure  itself of the  continued
services of Executive for the period provided in this Agreement; and

         WHEREAS, Executive is willing to continue to serve in the employ of the
Association on a full-time basis for said period.

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained,  and upon the other terms and conditions  hereinafter  provided,  the
parties hereby agree as follows:

1.       POSITION AND RESPONSIBILITIES

         During  the period of his  employment  hereunder,  Executive  agrees to
serve as  President  and Chief  Executive  Officer  of the  Association  and the
Company.  During said period,  Executive also agrees to serve, if elected, as an
officer and director of any subsidiary or affiliate of the Association.  Failure
to reelect  Executive  as  President  and Chief  Executive  Officer  without the
consent of the Executive  during the term of this Agreement  shall  constitute a
breach of this Agreement.

2.       TERMS AND DUTIES

         (a) The period of Executive's  employment  under this  Agreement  shall
begin as of the date first above written and shall continue for thirty-six  (36)
full calendar months  thereafter.  Commencing on the date of the  organizational
meeting following the Company's annual meeting of stockholders (the "Anniversary
Date") and continuing at each Anniversary Date thereafter, unless the Employment
Period has been previously  terminated,  the Board shall, at least 60 days prior
to each such Anniversary Date,  conduct a comprehensive  performance  evaluation
and review of the  Executive for purposes of  determining  whether to extend the
Agreement and the results  thereof shall be included in the minutes of the Board
meeting.  The Board shall give the Executive  notice of its decision  whether or
not to extend the  Employment  Period at least 60 days prior to the  Anniversary
Date, and if such notice is that the Employment  Period shall not be extended (a
"Non-Renewal  Notice"),  the  Employment  Period shall not be extended.  In such
case, the Agreement  shall  terminate in accordance with its terms at the end of
thirty-six (36) months following such Anniversary Date.

                                        1

<PAGE>

         (b)  During  the  Employment  Period,  except  for  periods  of absence
occasioned by illness,  reasonable  vacation  periods,  and reasonable leaves of
absence,  Executive  shall  faithfully  perform his duties  hereunder  including
activities and services related to the organization, operation and management of
the Association.

3.       COMPENSATION AND REIMBURSEMENT

         (a) The  compensation  specified under this Agreement shall  constitute
the salary and  benefits  paid for the duties  described  in Section  2(b).  The
Association  shall  pay  Executive  as  compensation  a salary  of not less than
$65,747 per year ("Base Salary").  Such Base Salary shall be payable  bi-weekly.
During the Employment Period, Executive's Base Salary shall be reviewed at least
annually;  the first such review  will be made no later than  January 31 of each
year during the term of this Agreement and shall be effective from the first day
of said  month  through  the end of the  calendar  year.  Such  review  shall be
conducted by a Committee  designated  by the Board,  and the Board may increase,
but not  decrease,  Executive's  Base Salary (any  increase in Base Salary shall
become the "Base  Salary" for  purposes of this  Agreement).  In addition to the
Base  Salary  provided in this  Section  3(a),  the  Association  shall  provide
Executive at no cost to Executive  with all such other  benefits as are provided
uniformly to permanent full-time employees of the Association.

         (b) The Association will provide Executive with employee benefit plans,
arrangements  and  perquisites   substantially  equivalent  to  those  in  which
Executive was participating or otherwise deriving benefit from immediately prior
to the beginning of the term of this Agreement,  and the  Association  will not,
without  Executive's  prior  written  consent,  make any  changes in such plans,
arrangements or perquisites which would adversely affect  Executive's  rights or
benefits thereunder. Without limiting the generality of the foregoing provisions
of this Subsection (b),  Executive will be entitled to participate in or receive
benefits  under  any  employee  benefit  plans  including  but not  limited  to,
retirement plans,  supplemental retirement plans, pension plans,  profit-sharing
plans, health-and-accident plans, medical coverage or any other employee benefit
plan or  arrangement  made  available  by the  Association  in the future to its
senior  executives  and  key  management  employees,  subject  to and on a basis
consistent with the terms,  conditions and overall  administration of such plans
and  arrangements.  Executive  will be entitled to  incentive  compensation  and
bonuses  as  provided  in any  plan of the  Association  in which  Executive  is
eligible to  participate  (and he shall be  entitled to a pro rata  distribution
under  any  incentive  compensation  or  bonus  plan as to any  year in  which a
termination of employment  occurs,  other than  termination for Cause).  Nothing
paid to the Executive under any such plan or arrangement will be deemed to be in
lieu of other  compensation  to which  the  Executive  is  entitled  under  this
Agreement.

         (c) In addition to the Base Salary  provided  for by  paragraph  (a) of
this  Section  3, the  Association  shall  pay or  reimburse  Executive  for all
reasonable travel and other reasonable expenses incurred by Executive performing
his   obligations   under  this  Agreement  and  may  provide  such   additional
compensation  in such form and such  amounts  as the Board may from time to time
determine.

                                        2

<PAGE>

4.       PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION

         The  provisions of this Section shall in all respects be subject to the
terms and conditions stated in Sections 7 and 14.

         (a) The  provisions of this Section shall apply upon the  occurrence of
an Event of  Termination  (as herein  defined)  during the  Executive's  term of
employment  under  this  Agreement.  As used in this  Agreement,  an  "Event  of
Termination" shall mean and include any one or more of the following:

         (i) the  termination  by the  Association or the Company of Executive's
full-time  employment  hereunder  for any reason  other than (A)  Disability  or
Retirement,  as  defined  in Section 5 below,  or (B)  Termination  for Cause as
defined in Section 6 hereof; or

         (ii) Executive's resignation from the Association's employ, upon any

                  (A)  failure to elect or  reelect  or to appoint or  reappoint
                  Executive as President and Chief Executive Officer,

                  (B)  material  change  in  Executive's  function,  duties,  or
                  responsibilities,   which  change   would  cause   Executive's
                  position to become one of lesser  responsibility,  importance,
                  or scope from the position and attributes thereof described in
                  Section 1, above,

                  (C) a relocation of Executive's  principal place of employment
                  by more than 30 miles from its location at the effective  date
                  of this Agreement.

                  (D)  liquidation or dissolution of the  Association or Company
                  other than  liquidations  or  dissolutions  that are caused by
                  reorganizations that do not affect the status of Executive, or

                  (E) breach of this Agreement by the Association.

Upon the occurrence of any event  described in clauses (ii) (A), (B), (C)or (D),
above, Executive shall have the right to elect to terminate his employment under
this  Agreement by  resignation  upon sixty (60) days prior written notice given
within a reasonable  period of time not to exceed four calendar months after the
initial event giving rise to said right to elect.  Notwithstanding the preceding
sentence,  in  the  event  of a  continuing  breach  of  this  Agreement  by the
Association,  the Executive,  after giving due notice within the prescribed time
frame of an initial  event  specified  above,  shall not waive any of his rights
solely  under  this  Agreement  and this  Section  4 by  virtue of the fact that
Executive has submitted his  resignation  but has remained in the  employment of
the  Association  and is  engaged  in good  faith  discussions  to  resolve  any
occurrence of an event described in clauses (A), (B), (C), (D), or (E) above.

                                        3

<PAGE>

         (iii) Executive's  voluntary  resignation from the Association's employ
on the effective date of, or at any time  following,  a Change in Control during
the term of this  Agreement.  For these  purposes,  a Change in  Control  of the
Association  or the Company shall mean a change in control of a nature that: (i)
would be required to be reported in response to Item 1(a) of the current  report
on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of
the Securities  Exchange Act of 1934 (the "Exchange  Act"); or (ii) results in a
Change in Control of the  Association  or the Company  within the meaning of the
Home  Owners  Loan  Act,  as  amended,  and  applicable  rules  and  regulations
promulgated  thereunder,  as in  effect  at the time of the  Change  in  Control
(collectively, the "HOLA"); or (iii) without limitation such a Change in Control
shall be deemed to have  occurred at such time as (a) any  "person" (as the term
is used in  Sections  13(d) and 14(d) of the  Exchange  Act) is or  becomes  the
"beneficial  owner" (as defined in Rule 13d-3 under the Exchange Act),  directly
or  indirectly,  of  securities of the Company  representing  25% or more of the
combined  voting  power  of  Company's  outstanding  securities  except  for any
securities  purchased by the  Association's  employee  stock  ownership  plan or
trust;  or (b)  individuals  who  constitute  the Board on the date  hereof (the
"Incumbent  Board")  cease for any  reason  to  constitute  at least a  majority
thereof,  provided  that any person  becoming a director  subsequent to the date
hereof whose election was approved by a vote of at least  three-quarters  of the
directors  comprising the Incumbent  Board, or whose  nomination for election by
the Company's stockholders was approved by the same Nominating Committee serving
under an Incumbent Board, shall be, for purposes of this clause (b),  considered
as  though  he  were  a  member  of  the  Incumbent  Board;  or  (c) a  plan  of
reorganization,  merger,  consolidation,  sale of all or  substantially  all the
assets of the  Association  or the Company or similar  transaction  in which the
Association or Company is not the surviving  institution  occurs; or (d) a proxy
statement  soliciting proxies from stockholders of the Company, by someone other
than the current management of the Company,  seeking  stockholder  approval of a
plan of  reorganization,  merger or  consolidation  of the  Company  or  similar
transaction with one or more  corporations or financial  institutions,  and as a
result such proxy solicitation a plan of reorganization, merger consolidation or
similar  transaction  involving the Company is approved by the requisite vote of
the Company's stockholders; or (e) a tender offer is made for 25% or more of the
voting securities of the Company and the shareholders  owning beneficially or of
record 25% or more of the outstanding securities of the Company have tendered or
offered to sell their  shares  pursuant to such tender  offer and such  tendered
shares have been accepted by the tender offeror.

         (b) Upon the  occurrence  of an  Event of  Termination,  on the Date of
Termination,  as defined in Section 7, the Association shall pay Executive,  or,
in the event of his subsequent death, his beneficiary or  beneficiaries,  or his
estate, as the case may be, as severance pay or liquidated  damages,  or both, a
sum equal to 299% of the Executive's  "base amount" of compensation,  as defined
in Section 280G(b)(3) of the Internal Revenue Code ("Code").  At the election of
the Executive,  which election is to be made on an annual basis during the month
of January,  and which  election is  irrevocable  for the year in which made and
upon the occurrence of an Event of Termination,  any payments shall be made in a
lump sum or paid monthly during the remaining  term of this Agreement  following
the Executive's  termination.  In the event that no election is made, payment to
the Executive will be made on a monthly basis during the remaining term of this

                                        4

<PAGE>

Agreement. Such payments shall not be reduced in the event the Executive obtains
other employment following termination of employment.

         (c) Upon the  occurrence of an Event of  Termination,  the  Association
will  cause to be  continued  life,  medical,  dental  and  disability  coverage
substantially  identical  to the  coverage  maintained  by the  Association  for
Executive prior to his  termination.  Such coverage shall continue for 36 months
from the Date of Termination.

         (d) Notwithstanding the preceding  paragraphs of this Section 4, in the
event that:

                  (i)      the  aggregate  payments  or  benefits  to be made or
                           afforded  to  Executive  under said  paragraphs  (the
                           "Termination Benefits") would be deemed to include an
                           "excess parachute  payment" under Section 280G of the
                           Code or any successor thereto, and

                  (ii)     if  such  Termination  Benefits  were  reduced  to an
                           amount (the  "Non-Triggering  Amount"),  the value of
                           which is one dollar ($1.00) less than an amount equal
                           to the total  amount of  payments  permissible  under
                           Section 280G of the Code or any successor thereto,

                  then the Termination Benefits to be paid to Executive shall be
                  so reduced so as to be a Non-Triggering Amount.

5.       TERMINATION UPON RETIREMENT, DISABILITY OR DEATH

         For purposes of this  Agreement,  termination by the Association of the
Executive based on "Retirement"  shall mean  termination  upon attainment of age
65, or such later age as may be required by law or as consented to by the Board.
Upon  termination of Executive upon  Retirement,  Executive shall be entitled to
all benefits under any  retirement  plan of the  Association  and other plans to
which Executive is a party.

         In the event  Executive  is unable to  perform  his  duties  under this
Agreement  on a full-time  basis for a period of six (6)  consecutive  months by
reason of illness or other  physical  or mental  disability,  the  Employer  may
terminate  this  Agreement,  provided  that the  Employer  shall  continue to be
obligated to pay the  Executive  his Base Salary for the  remaining  term of the
Agreement,  or one year,  whichever is the longer  period of time,  and provided
further that any amounts  actually paid to Executive  pursuant to any disability
insurance or other  similar such program  which the Employer has provided or may
provide  on behalf of its  employees  or  pursuant  to any  workman's  or social
security  disability  program  shall reduce the  compensation  to be paid to the
Executive pursuant to this paragraph.

         In the event of Executive's death during the term of the Agreement, his
estate,  legal  representatives or named beneficiaries (as directed by Executive
in writing) shall be paid Executive's

                                        5

<PAGE>

Base  Salary  as  defined  in  Paragraph  3(a) at the rate in effect at the time
Executive's  death for a period of one (1) year from the date of the Executive's
death,  and the Employers will continue to provide medical,  dental,  family and
other  benefits  normally  provided for an  Executive's  family for one (1) year
after the Executive's death.

6.        TERMINATION FOR CAUSE

         The term "Termination for Cause" shall mean termination  because of the
Executive's personal dishonesty, incompetence, willful misconduct, any breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule, or regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of this Agreement. In determining incompetence, the acts
or omissions shall be measured  against  standards  generally  prevailing in the
savings institutions industry. For purposes of this paragraph, no act or failure
to act on the part of Executive  shall be considered  "willful"  unless done, or
omitted to be done, by the  Executive not in good faith and with out  reasonable
belief that the  Executive's  action or omission was in the best interest of the
Associa tion.  Notwithstanding  the foregoing,  Executive shall not be deemed to
have been  Terminated for Cause unless and until there shall have been delivered
to him a copy of a resolution duly adopted by the  affirmative  vote of not less
than a majority  of the  disinterested  members of the Board at a meeting of the
Board called and held for that purpose (after reasonable notice to Executive and
an opportunity  for him,  together with counsel,  to be heard before the Board),
finding  that in the good faith  opinion of the Board,  Executive  was guilty of
conduct justifying  Termination for Cause and specifying the particulars thereof
in detail.  For these purposes,  reasonable  notice shall be deemed to have been
provided if delivered in person or by registered mail,  telegram,  or courier to
the  principal  residence of the  Executive no less than five (5) business  days
prior to such Board meeting. Notwithstanding the above, the Board shall have the
right to place Executive on paid administrative leave until the Board meeting at
which  Termination  for  Cause is  determined,  if to do so would be in the best
interest  of the  Association.  If in the good faith  opinion of the Board,  the
Executive is guilty of conduct  justifying  Termination  for Cause,  a Notice of
Termination  shall be issued to Executive in  accordance  with Section 7 hereof.
The Executive shall not have the right to receive compensation or other benefits
for any period after  Termination for Cause,  except in the event that a dispute
concerning the Termination  for Cause is resolved in favor of the Executive,  in
accordance  with Section 7(c). Any stock options  granted to Executive under any
stock option plan of the Association, the Company or any subsidiary or affiliate
thereof, shall become null and void effective upon Executive's receipt of Notice
of  Termination  for  Cause  pursuant  to  Section  7  hereof,  and shall not be
exercisable by Executive at any time  subsequent to such  Termination for Cause,
except  in the event  that a dispute  concerning  the  Termination  for Cause is
resolved in favor of the Executive, in accordance with Section 7(c) hereof.

7.       NOTICE

         (a) Any purported  termination by the Association or by Executive shall
be communicated by Notice of Termination to the other party hereto. For purposes
of this Agreement,  a "Notice of Termination"  shall mean a written notice which
shall indicate the specific termination provision in

                                        6

<PAGE>

this  Agreement  relied upon and shall set forth in reasonable  detail the facts
and  circumstances  claimed to provide a basis for  termination  of  Executive's
employment  under the  provision  so  indicated.  Notice of  Termination  may be
delivered,  in person, by registered mail,  telegram or courier to the principal
administrative  office of the  Association,  in the case of Notice  given by the
Executive,  and in the case of Notice of Termination  of the  Executive,  to the
Executive's principal place of residence within 72 hours of the determination of
termination.

         (b) "Date of Termination"  shall mean (A) if Executive's  employment is
terminated  for  Disability,  thirty (30) days after a Notice of  Termination is
given (provided that he shall not have returned to the performance of his duties
on a  full-time  basis  during  such  thirty  (30) day  period),  and (B) if his
employment is terminated for any other reason,  the date specified in the Notice
of Termination  (which, in the case of a Termination for Cause, may be immediate
if, in the sole discretion of the Board of Directors,  immediate  termination is
in the best interest of the Association).

         (c) If,  within  thirty  (30) days after any Notice of  Termination  is
given,  the party receiving such Notice of Termination  notifies the other party
that a dispute  exists  concerning  the  termination,  except upon the voluntary
termination by the Executive in which case the Date of Termination  shall be the
date specified in the Notice, the Date of Termination shall be the date on which
the dispute is finally  determined,  either by mutual  written  agreement of the
parties, by a binding arbitration award, or by a final judgment, order or decree
of a court of competent  jurisdiction (the time for appeal having expired and no
appeal having been perfected) and provided  further that the Date of Termination
shall be  extended  by a notice of dispute  only if such notice is given in good
faith and the party giving such notice  pursues the  resolution  of such dispute
with  reasonable  diligence.  Notwithstanding  the pendency of any such dispute,
except in the case of voluntary  termination by the Executive or Termination for
Cause, the Association  will continue to pay Executive his full  compensation in
effect when the notice giving rise to the dispute was given (including,  but not
limited  to,  Base  Salary)  and  continue  Executive  as a  participant  in all
compensation,  benefit and insurance plans in which he was participating,  until
the dispute is finally resolved in accordance with this Agreement, provided such
dispute  is  resolved  within  the  term  of this  Agreement.  In the  event  of
Termination for Cause, no compensation shall be paid to the Executive during the
pendency of any dispute,  provided,  however,  that in the event such dispute is
finally  determined  (by  mutual  written  agreement  of  the  parties,  binding
arbitration  or  final  judgement,  order  or  decree  of a court  of  competent
jurisdiction) in favor of the Executive,  the Executive shall be entitled to all
compensation previously withheld (including Base Salary, incentive compensation,
stock options, and contributions to qualified and nonqualifed benefit plans) and
reimbursement for any insurance  coverage  purchased by the Executive to replace
coverage  previously  provided by the Association  pursuant to the terms of this
Agreement.  If such dispute is not resolved  within the term of this  Agreement,
the Association  shall not be obligated,  upon final resolution of such dispute,
to pay Executive  compensation  and other payments  accruing  beyond the term of
this  Agreement.  Amounts  paid under this  Section  shall be offset  against or
reduce any other amounts due under this Agreement.

8.       POST-TERMINATION OBLIGATIONS

                                        7

<PAGE>

         (a) All payments and benefits to Executive  under this Agreement  shall
be subject to Executive's compliance with paragraph (b) of this Section 8 during
the term of this  Agreement  and for one (1) full year after the  expiration  or
termination hereof.

         (b) Executive shall, upon reasonable  notice,  furnish such information
and  assistance  to  the  Association  as  may  reasonably  be  required  by the
Association  in  connection  with  any  litigation  in  which  it or  any of its
subsidiaries or affiliates is, or may become, a party.

9.       NON-COMPETITION

         (a) Upon any  termination of Executive's  employment  hereunder,  other
than a termination,  (whether  voluntary or  involuntary)  in connection  with a
Change in  Control,  as a result of which the  Association  is paying  Executive
benefits under Section 4 of this Agreement, Executive agrees not to compete with
the  Association  and/or the Company for a period of one (1) year following such
termination  within  twenty-five  (25)  miles  of  any  existing  branch  of the
Association or any subsidiary of the Company or within twenty-five (25) miles of
any office for which the Association, the Company or a subsidiary of the Company
has filed an  application  for  regulatory  approval  to  establish  an  office,
determined as of the  effective  date of such  termination,  except as agreed to
pursuant to a resolution duly adopted by the Board. Executive agrees that during
such period and within said area,  cities,  towns and counties,  Executive shall
not work for or advise, consult or otherwise serve with, directly or indirectly,
any entity whose business  materially  competes with the depository,  lending or
other business  activities of the  Association  and/or the Company.  The parties
hereto,  recognizing  that  irreparable  injury will  result to the  Association
and/or the Company, its business and property in the event of Executive's breach
of this Subsection 9(a) agree that in the event of any such breach by Executive,
the  Association  and/or the Company will be entitled,  in addition to any other
remedies and damages  available,  to an  injunction  to restrain  the  violation
hereof  by  Executive,   Executive's  partners,  agents,  servants,   employers,
employees and all persons acting for or with Executive. Executive represents and
admits that Executive's  experience and capabilities are such that Executive can
obtain  employment  in a business  engaged in other lines  and/or of a different
nature than the  Association  and/or the Company,  and that the enforcement of a
remedy  by  way  of  injunction  will  not  prevent  Executive  from  earning  a
livelihood.  Nothing  herein will be construed as  prohibiting  the  Association
and/or the Company from pursuing any other remedies available to the Association
and/or the Company for such breach or threatened breach,  including the recovery
of damages from Executive.

         (b) Executive  recognizes  and  acknowledges  that the knowledge of the
business  activities and plans for business  activities of the  Association  and
affiliates  thereof,  as it may exist from time to time, is a valuable,  special
and unique asset of the business of the Association.  Executive will not, during
or  after  the term of his  employment,  disclose  any  knowledge  of the  past,
present,  planned  or  considered  business  activities  of the  Association  or
affiliates  thereof to any person,  firm,  corporation,  or other entity for any
reason or purpose  whatsoever  (except for such disclosure as may be required to
be provided to any federal banking agency with jurisdiction over the Association
or  Executive).  Notwithstanding  the  foregoing,  Executive  may  disclose  any
knowledge of banking,  financial and/or economic  principles,  concepts or ideas
which are not solely and exclusively derived from the

                                        8

<PAGE>

business plans and activities of the Association, and Executive may disclose any
information regarding the Association or the Company which is otherwise publicly
available. In the event of a breach or threatened breach by the Executive of the
provisions of this Section 9, the Association  will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of the
past,  present,  planned or considered business activities of the Association or
affiliates  thereof,  or  from  rendering  any  services  to any  person,  firm,
corporation,  other entity to whom such knowledge, in whole or in part, has been
disclosed or is threatened to be disclosed.  Nothing herein will be construed as
prohibiting  the Association  from pursuing any other remedies  available to the
Association  for such breach or  threatened  breach,  including  the recovery of
damages from Executive.

10.      SOURCE OF PAYMENTS

         All payments provided in this Agreement shall be timely paid in cash or
check  from  the  general  funds  of  the  Association.  The  Company,  however,
guarantees  payment and  provision of all amounts and benefits due  hereunder to
Executive  and, if such amounts and benefits  due from the  Association  are not
timely paid or provided by the  Association,  such amounts and benefits shall be
paid or provided by the Company.

11.      EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS

         This Agreement  contains the entire  understanding  between the parties
hereto and supersedes any prior employment  agreement between the Association or
any  predecessor of the  Association  and Executive,  except that this Agreement
shall not affect or operate to reduce any benefit or compensation inuring to the
Executive of a kind elsewhere provided.  No provision of this Agreement shall be
interpreted to mean that  Executive is subject to receiving  fewer benefits than
those available to him without reference to this Agreement.

12.      REQUIRED PROVISIONS

         (a) The  Association  may terminate the  Executive's  employment at any
time.  Executive  shall  not have the  right to  receive  compensation  or other
benefits for any period after  Termination  for Cause as defined in Section 2(c)
hereinabove.

         (b) If the  Executive  is  suspended  from  office  and/or  temporarily
prohibited from  participating in the conduct of the Association's  affairs by a
notice  served  under  Section  8(e)(3) (12 USC  ss.1818(e)(3))  or 8(g) (12 USC
ss.1818(g))  of the Federal  Deposit  Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and Enforcement  Act of 1989, the  Association's
obligations  under this  contract  shall be suspended as of the date of service,
unless  stayed by  appropriate  proceedings.  If the  charges  in the notice are
dismissed,  the  Association  may in its discretion (i) pay the Executive all or
part  of  the  compensation  withheld  while  their  contract  obligations  were
suspended and (ii) reinstate (in whole or in part) any of the obligations  which
were suspended.

         (c) If the  Executive is removed  and/or  permanently  prohibited  from
participating  in the conduct of the  Association's  affairs by an order  issued
under  Section  8(e)  (12 USC  ss.1818(e))  or 8(g) (12 USC  ss.1818(g))  of the
Federal Deposit Insurance Act, as amended by the Financial Institutions Reform,

                                        9

<PAGE>

Recovery and Enforcement  Act of 1989, all obligations of the Association  under
this contract shall terminate as of the effective date of the order,  but vested
rights of the contracting parties shall not be affected.

         (d) If the Association is in default as defined in Section 3(x) (12 USC
ss.1813(x)(1)) of the Federal Deposit Insurance Act, as amended by the Financial
Institutions  Reform,  Recovery and  Enforcement Act of 1989, all obligations of
the  Association  under this contract shall terminate as of the date of default,
but this  paragraph  shall not  affect  any  vested  rights  of the  contracting
parties.

         (e) All  obligations  of the  Association  under this contract shall be
terminated, except to the extent determined that continuation of the contract is
necessary for the  continued  operation of the  Association,  (i) by the Federal
Deposit  Insurance  Corporation  ("FDIC"),  at the time the FDIC  enters into an
agreement to provide  assistance  to or on behalf of the  Association  under the
authority  contained in Section 13(c) (12 USC ss.1823(c)) of the Federal Deposit
Insurance  Act, as amended by the Financial  Institutions  Reform,  Recovery and
Enforcement  Act of 1989;  or (ii) by the FDIC at the time the FDIC  approves  a
statutory  merger  related  to the  operation  of the  Association  or when  the
Association  is determined by the FDIC to be in an unsafe or unsound  condition.
Any  rights of the  parties  that have  already  vested,  however,  shall not be
affected by such action.

         (f) Any  payments  made to  Executive  pursuant to this  Agreement,  or
otherwise,  are subject to and conditioned  upon their compliance with 12 U.S.C.
Section 1828(k) and any regulations promulgated thereunder.

13.      NO ATTACHMENT

         (a) Except as required by law, no right to receive  payments under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

         (b) This Agreement  shall be binding upon, and inure to the benefit of,
Executive and the Association and their respective successors and assigns.

14.      MODIFICATION AND WAIVER

         (a)  This  Agreement  may  not be  modified  or  amended  except  by an
instrument in writing signed by the parties hereto.

         (b) No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically  stated therein,  and each such waiver shall operate only as
to the specific  term or condition  waived and shall not  constitute a waiver of
such term or condition for the future as to any act other than that specifically
waived.

                                       10

<PAGE>

15.      SEVERABILITY

         If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision and part thereof shall to the full extent  consistent with
law continue in full force and effect.

16.      HEADINGS FOR REFERENCE ONLY

         The headings of sections and paragraphs  herein are included solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

17.      GOVERNING LAW

         This Agreement shall be governed by the laws of the State of Kansas but
only to the extent not superseded by federal law.

18.      ARBITRATION

         Any dispute or  controversy  arising under or in  connection  with this
Agreement shall be settled exclusively by arbitration,  conducted before a panel
of three arbitrators sitting in a location selected by the employee within fifty
(50) miles from the location of the Association, in accordance with the rules of
the American Arbitration  Association then in effect. Judgment may be entered on
the arbitrator's award in any court having jurisdiction.

19.      PAYMENT OF LEGAL FEES

         All reasonable legal fees paid or incurred by Executive pursuant to any
dispute or question of  interpretation  relating to this Agreement shall be paid
or reimbursed by the  Association,  provided that the dispute or  interpretation
has been settled by Executive and the Association or resolved in the Executive's
favor.

20.      INDEMNIFICATION

         The Association shall provide Executive (including his heirs, executors
and  administrators)  with coverage  under a standard  directors'  and officers'
liability  insurance policy at its expense,  and shall indemnify  Executive (and
his heirs,  executors and  administrators) to the fullest extent permitted under
federal law against all expenses and liabilities  reasonably  incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be  involved  by  reason  of  his  having  been a  director  or  officer  of the
Association (whether or not he continues to be a director or officer at the time
of incurring  such expenses or  liabilities),  such expenses and  liabilities to
include,  but not be limited to, judgments,  court costs and attorneys' fees and
the cost of reasonable  settlements  (such  settlements  must be approved by the
Board of Directors of the Association). If such action, suit or

                                       11

<PAGE>

proceeding  is  brought  against  Executive  in his  capacity  as an  officer or
director of the Association,  however,  such indemnification shall not extend to
matters as to which  Executive  is  finally  adjudged  to be liable for  willful
misconduct in the performance of his duties.

21.      SUCCESSOR TO THE ASSOCIATION

         The Association shall require any successor or assignee, whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise,  to  all or
substantially  all the  business or assets of the  Association  or the  Company,
expressly and  unconditionally  to assume and agree to perform the Association's
obligations under this Agreement, in the same manner and to the same extent that
the Association would be required to perform if no such succession or assignment
had taken place.

                     [Remainder of Page Intentionally Blank]

                                       12

<PAGE>

                                   SIGNATURES

         IN WITNESS  WHEREOF,  the  Association and the Company have caused this
Agreement  to be executed  and their seals to be affixed  hereunto by their duly
authorized officers,  and Executives have signed this Agreement,  on the day and
date first above written.

ATTEST:                                         FIRST FEDERAL SAVINGS & LOAN
                                                ASSOCIATION OF OLATHE

                                       By:
-----------------------------------       --------------------------------------

ATTEST:                                         FIRST FEDERAL OF OLATHE BANCORP,
                                                INC.

                                       By:
-----------------------------------       --------------------------------------

WITNESS:                                        EXECUTIVE:

                                       By:
-----------------------------------       --------------------------------------

                                       13

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