Document:

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                                                                     EXHIBIT 4.3

CUSIP NO.: 872375 AB 6                           PRINCIPAL AMOUNT:  $200,000,000

REGISTERED NO. 1

TECO ENERGY, INC.

7% Remarketable or Redeemable Securities Due 2015

|X|      Check this box if the Note is a Global Note.

         Applicable if the Note is a Global Note:

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

     This Note is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of Cede & Co., or such
other nominee of The Depository Trust Company, a New York corporation, or any
successor depositary ("Depositary"), as requested by an authorized
representative of the Depositary. This Note is exchangeable for Notes registered
in the name of a person other than the Depositary or its nominee only in the
limited circumstances described in the Indenture and may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the
Depositary.

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

ORIGINAL ISSUE DATE:   INTEREST PAYMENT DATES: April 1   INITIAL CALLHOLDER:
September 25, 2000     and October 1 of each year,       Salomon Smith Barney
                       up to but excluding               Inc. or its assignee
ISSUE PRICE: 99.804%   October 1, 2002 and commencing    or successor
(as a percentage       October 1, 2000. From and
of principal amount)   including October 1, 2002,        SINKING FUND: N/A
                       on the dates described in
STATED MATURITY:       Annex A hereto.                   YIELD TO MATURITY: N/A
October 1, 2015,
subject to mandatory   SPECIFIED CURRENCY: U.S. dollars  REDEMPTION, REPURCHASE
tender to the          (if other than U.S. dollars):     AND CONVERSION OPTIONS:
Callholder, if any,    N/A                               See reverse of this
as described on                                          Note.
the reverse of this    AUTHORIZED DENOMINATIONS: N/A
Note.                  (Only applicable if Specified     REMARKETING PROVISIONS:
                       Currency is other than U.S.       See reverse of this
INTEREST RATE: To      dollars)                          Note.
but excluding
October 1, 2002        DEPOSITORY: The Depository
7% per annum.          Trust Company
Thereafter, at the
interest rate set
forth in Annex A
hereto.

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THIS NOTE SHALL NOT BE VALID FOR ANY PURPOSE UNLESS PRESENTED TOGETHER WITH AN
ANNEX A HERETO (INCLUDING ANY CONTINUATION THEREOF). REFERENCE IS MADE TO ANNEX
A FOR CERTAIN TERMS OF THIS NOTE.

     TECO ENERGY, INC., a corporation duly organized and existing under the laws
of the State of Florida (herein called the "COMPANY," which term includes any
successor Corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal sum set forth in Annex A on the Stated Maturity, upon the presentation
and surrender hereof at the principal corporate trust office of The Bank of New
York, or its successor in trust (the "TRUSTEE") or such other office as the
Trustee has designated in writing, and to pay interest on the unpaid principal
balance hereof at a rate per annum (assuming a 360-day year consisting of twelve
30-day months) equal to the Initial Interest Rate set forth in Annex A for the
period from the Original Issue Date to, but excluding, October 1, 2002 (the
"INITIAL ROARS REMARKETING DATE"). If the Initial Callholder (as defined above
and set forth in Annex A) elects to purchase this Note on the Initial ROARS
Remarketing Date, except in the limited circumstances described on the reverse
of this Note, (a) this Note will be subject to mandatory tender to the Initial
Callholder at 100% of the aggregate principal amount thereof for remarketing on
the Initial ROARS Remarketing Date, on the terms and subject to the conditions
described on the reverse of this Note, and (b) will for the period from the
Initial ROARS Remarketing Date to, but excluding, October 1, 2012, bear interest
at the ROARS Coupon Reset Rate (as defined on the reverse of this Note). If the
Initial Callholder does not purchase this Note on the Initial ROARS Remarketing
Date, this Note automatically will be subject to mandatory tender at 100% of the
principal amount thereof for redemption on such date by the Company or for
remarketing on such date by a Remarketing Agent (as defined on the Reverse of
this Note) in a Commercial Paper Term Mode, Long Term Rate Mode or a new ROARS
Mode and will bear interest at a rate and for a period set forth in Annex A
hereto.

     Interest will be payable on the Interest Payment Dates to the Person in
whose name this Note is registered at the close of business on the related
Record Date as provided below or as set forth in Annex A. In each case, payments
shall be made in accordance with the provisions hereof, including any additional
terms specified in Annex A, until the principal hereof is paid or duly made
available for payment. References herein to "this Note," "hereof," "herein" and
comparable terms shall include Annex A.

     So long as this Note bears interest in the Commercial Paper Term Mode,
interest will be payable on the Interest Rate Adjustment Date which commences
the next succeeding Interest Rate Period for this Note and on such other dates
(if any) as will be established by the Company and set forth in Annex A upon
conversion of this Note to the Commercial Paper Term Mode or upon remarketing of
this Note in a new Interest Rate Period in the Commercial Paper Term Mode. So
long as this Note bears interest in the Long Term Rate Mode or the ROARS Mode,
interest will be payable no less frequently than semiannually on such dates as
will be established by the Company and set forth in Annex A upon conversion of
this Note to the Long Term Rate Mode or the ROARS Mode (or upon remarketing of
this Note in a new Interest Rate Period in the Long Term Rate Mode or the ROARS
Mode, as the case may be) in the case of a fixed interest rate, or as set forth
below under "INTEREST RATE" in the case of a floating interest

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rate and on the Interest Rate Adjustment Date commencing the next succeeding
Interest Rate Period. Such interest will be payable to the Holder hereof as of
the related Record Date, which, so long as this Note bears interest (i) in the
Initial Interest Rate Period, are the dates specified in Annex A; (ii) in the
Commercial Paper Term Mode, is the Business Day prior to the related Interest
Payment Date; and (iii) in the Long Term Rate Mode or the ROARS Mode, is the
fifteenth calendar day (whether or not a Business Day) immediately preceding the
related Interest Payment Date. Except as provided below under "Floating Interest
Rates," if any Interest Payment Date would otherwise be a day that is not a
Business Day, such Interest Payment Date will be postponed to the next
succeeding Business Day, and no interest will accrue on such payment for the
period from and after such Interest Payment Date to the date of such payment on
the next succeeding Business Day. Interest on this Note while bearing interest
in the Commercial Paper Term Mode or at a floating interest rate during a Long
Term Rate Period or a ROARS Rate Period will be computed on the basis of actual
days elapsed over 360; PROVIDED that, if an applicable Interest Rate Basis is
the CMT Rate or Treasury Rate (each as defined below), interest will be computed
on the basis of actual days elapsed over the actual number of days in the year.
Interest on this Note while bearing interest in the Long Term Rate Mode or the
ROARS Mode will be computed on the basis of a year of 360 days consisting of
twelve 30-day months. Interest on this Note while bearing interest at the
Initial Interest Rate will be computed on the basis of a year of 360 days
consisting of twelve 30-day months.

     Payment of the principal of (and premium, if any) and any such interest on
this Note shall be made in immediately available funds at the office or agency
of the Company maintained for that purpose in the City of New York in the State
of New York, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.

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

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

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     IN WITNESS WHEREOF, TECO ENERGY, INC. has caused this instrument to be duly
executed.

Dated:  September 25, 2000

TRUSTEE'S CERTIFICATE                          TECO ENERGY, INC.
OF AUTHENTICATION
This is one of the series
designated therein referred                    By: /S/ SANDRA W. CALLAHAN
to in the within-mentioned                        ----------------------
Indenture.                                     Name: Sandra W. Callahan
                                               Title: Vice President - Treasurer

THE BANK OF NEW YORK,
as Authenticating Agent for the Trustee
                                               [SEAL]

By: /S/ JAMES HALL
   -----------------------
Name: James Hall
Authorized signatory

[SEAL]

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(REVERSE OF NOTE)

TECO ENERGY, INC.

7% Remarketable or Redeemable Securities Due 2015

     This Note is one of a duly authorized issue of securities of the Company
(herein called the "NOTES"), issued and to be issued under an Indenture dated as
of August 17, 1998, as supplemented by the Second Supplemental Indenture, dated
as of September 15, 2000 (as previously supplemented by the First Supplemental
Indenture dated September 1, 1998, and as further amended or supplemented, the
"INDENTURE"), between the Company and The Bank of New York, as trustee (the
"TRUSTEE", which term includes any successor Trustee under the Indenture), to
which Indenture 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
Notes are, and are to be, authenticated and delivered. This Note is one of the
securities of the series designated on the face hereof, limited in aggregate
principal amount to $200,000,000.

                                   DEFINITIONS

     The following terms, as used herein, have the following meanings unless the
context or use clearly indicates another or different meaning or intent:

     "APPLICABLE SPREAD" shall mean the lowest bid indication, expressed as a
spread (in the form of a percentage or in basis points) above the Base Rate,
obtained by the Callholder on the applicable Determination Date from the bids
quoted by up to five Reference Corporate Dealers for the full aggregate
outstanding principal amount of the Notes at the Dollar Price, but assuming (i)
a settlement date that is the Initial ROARS Remarketing Date, with settlement on
such date without accrued interest, (ii) a maturity date equal to the next
succeeding Interest Rate Adjustment Date of the Notes, (iii) a stated annual
interest rate, payable semiannually on each Interest Payment Date, equal to the
Base Rate plus the spread bid by the applicable Reference Corporate Dealer, and
(iv) the benefit of any credit support provided by the Company, if the Company
elects to provide credit support. If fewer than five Reference Corporate Dealers
bid as described above, then the Applicable Spread shall be the lowest of such
bid indications obtained as described above. The ROARS Coupon Reset Rate
announced by the Callholder, absent manifest error, shall be binding and
conclusive upon the Beneficial Owners and holders of the Notes, the Company and
the Trustee.

     "BASE RATE" shall mean the interest rate established by the Callholder,
after consultation with the Company, as the applicable "base rate" at or prior
to the commencement of the ROARS Mode and set forth in Annex A hereto.

     "BENEFICIAL OWNER" shall mean, if this Note is in book-entry form, the
Person who acquires an interest in the Note, which is reflected on the records
of Depositary through its participants.

     "BOND EQUIVALENT YIELD" shall have the meaning set forth under "Treasury
Rate" below.

     "BUSINESS DAY" shall mean any day other than a Saturday or Sunday that is
(a) neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulations to close (x) in the City of New
York or (y) for Notes denominated in a specified currency other than U.S.
dollars, Australian dollars or Euro, in the principal financial center of the
country of the specified currency or (z)

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for Notes denominated in Australian dollars, in Sydney and (b) for Notes
denominated in Euro, that is also a day on which the Trans-European Automated
Real-time Gross Settlement Express Transfer System, commonly referred to as
"TARGET", is operating.

     "CALCULATION AGENT" shall mean, if this Note bears interest at a floating
rate, an entity selected by the Company that will determine the interest rate in
effect for each Interest Reset Period of this Note subsequent to the initial
Interest Reset Date.

     "CALCULATION DATE" shall have the meaning set forth under "FLOATING
INTEREST RATES" below.

     "CALLHOLDER" shall mean the remarketing agent granted the option under a
ROARS Remarketing Agreement to purchase this Note in the ROARS Mode and
subsequently remarket the repurchased Note at a ROARS Coupon Reset Rate.

     "CD RATE" shall have the meaning set forth under "FLOATING INTEREST RATES"
below.

     "CMT RATE" shall have the meaning set forth under "FLOATING INTEREST RATES"
below.

     "COMMERCIAL PAPER TERM MODE" shall mean the Interest Rate Mode in which the
interest rate on this Note is reset on a periodic basis that shall not be less
than one calendar day nor more than 364 consecutive calendar days and interest
is paid as provided for such Interest Rate Mode as set forth herein.

     "COMMERCIAL PAPER TERM PERIOD" shall mean the Interest Rate Period for this
Note in the Commercial Paper Term Mode that is a period of not less than one nor
more than 364 consecutive calendar days, as determined by the Company (as
described below under "CONVERSION") or, if not so determined, by the Remarketing
Agent for this Note (in its best judgment in order to obtain the lowest interest
cost for such Note). Each Commercial Paper Term Period will commence on the
Interest Rate Adjustment Date therefor and end on the day preceding the date
specified by such Remarketing Agent as the first day of the next Interest Rate
Period for this Note. The interest rate for any Commercial Paper Term Period
relating to this Note will be determined not later than 11:50 a.m., New York
City time, on the Interest Rate Adjustment Date for this Note, which is the
first day of each Interest Rate Period for this Note.

     "COMPARABLE TREASURY ISSUES" shall mean the United States Treasury security
or securities selected by the Callholder as having an actual or interpolated
maturity or maturities comparable or applicable to the remaining term to the
next succeeding Interest Rate Adjustment Date of the Notes being purchased,
except that for the purposes of determining the initial ROARS Coupon Reset Rate,
Comparable Treasury Issues shall mean the United States Treasury security or
securities selected by the Callholder as being the current on-the-run ten year
United States Treasury security.

     "COMPARABLE TREASURY PRICE" shall mean, with respect to a ROARS Remarketing
Date, (a) the offer prices for the Comparable Treasury Issues (expressed in each
case as a percentage of its principal amount) at 11:00 a.m. on the Determination
Date, as set forth on Telerate Page 500 (or such other page as may replace
Telerate Page 500) or (b) if such page (or any successor page) is not displayed
or does not contain such offer prices on such Determination Date, (i) the
average of the Reference Treasury Dealer Quotations for such ROARS Remarketing
Date, after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (ii) if the applicable Callholder obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such Reference Treasury
Dealer Quotations. "TELERATE PAGE 500" shall mean the display designated as
"Telerate Page 500" on Dow Jones Markets (or

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such other page as may replace Telerate Page 500 on such service) or such other
service displaying the offer prices specified in (a) above as may replace Dow
Jones Markets.

     "DEPOSITARY" shall mean The Depository Trust Company or any successor
depositary.

     "DESIGNATED CMT TELERATE PAGE" shall mean the display on the Dow Jones
Markets (or any successor service) on the page specified in the applicable
Floating Interest Rate Notice (or any other page as may replace such page on
such service for the purpose of displaying Treasury Constant Maturities as
reported in H.15(519)) for the purpose of displaying Treasury Constant
Maturities as reported in H.15(519). If no such page is specified in the
applicable Floating Interest Rate Notice, the page shall be 7052 for the most
recent week.

     "DESIGNATED CMT MATURITY INDEX" shall mean the original period to maturity
of the United States Treasury securities (either 1, 2, 3, 5, 7, 10, 20 or 30
years) specified in the applicable Floating Interest Rate Notice with respect to
which the CMT Rate will be calculated. If no such maturity is specified in the
applicable Floating Interest Rate Notice, the Designated CMT Maturity Index
shall be 2 years.

     "DESIGNATED LIBOR PAGE" shall mean (a) if "LIBOR Reuters" is specified in
the applicable Floating Interest Rate Notice, the display on the Reuters Monitor
Money Rates Service for the purpose of displaying the London interbank rates of
major banks for the applicable Index Currency, or (b) if "LIBOR Telerate" is
specified in the applicable Floating Interest Rate Notice, the display on the
Bridge Telerate, Inc. (or any successor service) on the page specified in the
applicable Floating Interest Rate Notice (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 applicable Index Currency.

     "DETERMINATION DATE" shall mean the third Business Day immediately
preceding the applicable ROARS Remarketing Date.

     "DOLLAR PRICE" shall mean the present value determined by the
Callholder, as of the applicable ROARS Remarketing Date, of the Remaining
Scheduled Payments discounted to such ROARS Remarketing Date, on a semiannual
basis (assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate.

     "DTC PARTICIPANT" shall mean an account maintained by an institution with
the Depositary through which securities are held by such institution and
accounted for by a book-entry registration and transfer system.

     "FEDERAL FUNDS RATE" shall have the meaning set forth under "FLOATING
INTEREST RATES" below.

     "FLOATING INTEREST RATE NOTICE" shall mean the notice described under
"FLOATING INTEREST RATES" below, which is to be provided by the Company to the
Trustee and the Remarketing Agent in the event the Company elects to apply a
floating interest rate to this Note.

     "FLOATING RATE MAXIMUM INTEREST RATE" and "FLOATING RATE MINIMUM INTEREST
RATE" have the respective meanings specified under "Floating Interest Rates"
below.

     "H.15 (519)" shall mean "Statistical Release H.15(519), Selected Interest
Rates" published by the Board of Governors of the Federal Reserve System or any
successor publication.

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     "INDEX CURRENCY" shall mean the currency or composite currency specified in
the applicable Floating Interest Rate Notice as to which LIBOR will be
calculated. If no such currency or composite currency is specified in the
applicable Floating Interest Rate Notice, the Index Currency will be United
States dollars.

     "INDEX MATURITY" shall mean the period to maturity of the instrument or
obligation with respect to which the related Interest Rate Basis or Bases will
be calculated.

     "INITIAL INTEREST RATE" shall mean the annual rate of interest applicable
to this Note during the Initial Interest Rate Period as set forth on Annex A
hereto.

     "INITIAL INTEREST RATE PERIOD" shall mean the period from the Original
Issuance Date to, but excluding, the Initial ROARS Remarketing Date.

     "INITIAL CALLHOLDER" means the Callholder with the option to purchase this
Note on the Initial ROARS Remarketing Date, the identity of which Initial
Callholder is set forth in Annex A hereto.

     "INITIAL ROARS REMARKETING DATE" shall mean the date designated by the
Initial Callholder, after consultation with the Company, upon which the Initial
Callholder may, if it has so elected, remarket this Note at the ROARS Coupon
Reset Rate, which date is set forth in Annex A hereto.

     "INTEREST DETERMINATION DATE" shall have the meaning specified under
"FLOATING INTEREST RATES" below.

     "INTEREST PAYMENT DATE" shall mean the date on which interest on this Note
is paid, which date(s) shall be set forth in Annex A hereto.

     "INTEREST RATE ADJUSTMENT DATE" shall mean (i) for a particular Interest
Rate Period in any Interest Rate Mode, each date, which shall be a Business Day,
on which interest and, in the case of a floating interest rate, the Spread (if
any) and the Spread Multiplier (if any) on this Note subject thereto commences
to accrue at the rate determined and announced by the applicable Remarketing
Agent for such Interest Rate Period, and (ii) during the Initial Interest Rate
Period, the Original Issue Date.

     "INTEREST RATE BASIS" shall mean the interest rate or interest rate formula
to be referenced in determining a floating interest rate, as described under
"Floating Interest Rates" below.

     "INTEREST RATE MODE" shall mean the mode in which the interest rate on a
Note is being determined, I.E., the Commercial Paper Term Mode, the Long Term
Rate Mode or the ROARS Mode.

     "INTEREST RATE PERIOD" shall mean (a) if this Note is in the Commercial
Paper Mode or Long Term Rate Mode, the period of time commencing on the Interest
Rate Adjustment Date and extending either (i) to, but not including, the
immediately succeeding Interest Rate Adjustment Date or (ii), if there is no
succeeding Interest Rate Adjustment date, to, but excluding, the Stated
Maturity, and during which this Note bears interest at a particular fixed
interest rate or floating interest rate; and (b) if this Note is in a ROARS
Mode, the ROARS Rate Period.

     "INTEREST RESET DATE" and "INTEREST RESET PERIOD" have the respective
meanings specified under "FLOATING INTEREST RATES" below.

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     "LONDON BUSINESS DAY" shall mean any day on which dealings in deposits in
the relevant index currency are transacted in the London interbank market.

     "LIBOR" shall have the meaning specified under "FLOATING INTEREST RATES"
below.

     "LONG TERM RATE MODE" shall mean the Interest Rate Mode in which the
interest rate on this Note is reset in a Long Term Rate Period and interest is
paid as provided for such Interest Rate Mode as set forth herein.

     "LONG TERM RATE PERIOD" shall mean any period of more than 364 days and not
exceeding the remaining term to the Stated Maturity of this Note.

     "NOTIFICATION DATE" shall mean a Business Day not later than five Business
Days prior to the applicable ROARS Remarketing Date.

     "OPTIONAL REDEMPTION" shall mean the redemption of this Note prior to its
maturity at the option of the Company as described herein.

     "OPTIONAL REDEMPTION PRICE" shall mean, at any given time, the greater of
either (i) 100% of the principal amount of this Note or (ii) the Dollar Price
plus in either case any amount necessary for any accrued and unpaid interest
from the ROARS Remarketing Date on the principal amount being redeemed to the
date of redemption.

     "ORIGINAL ISSUE DATE" shall have the meaning set forth on the face hereof.

     "PRIME RATE" shall have the meaning specified under "FLOATING INTEREST
RATES" below.

     "REFERENCE CORPORATE DEALERS" shall mean such corporate dealers as shall be
appointed by the Callholder after consultation with the Company and each to be
set forth in Annex A hereto.

     "REFERENCE TREASURY DEALERS" shall mean such treasury dealers as shall be
appointed by the Callholder after consultation with the Company and each to be
set forth in Annex A hereto.

     "REFERENCE TREASURY DEALER QUOTATION" shall mean, with respect to each
Reference Treasury Dealer and the ROARS Remarketing Date, the offer prices for
the Comparable Treasury Issues (expressed in each case as a percentage of its
principal amount) quoted in writing to the Callholder by such Reference Treasury
Dealer by 3:30 p.m., New York City time, on the Determination Date.

     "REMAINING SCHEDULED PAYMENTS" shall mean the remaining scheduled payments
of the principal thereof and interest thereon, calculated at the Base Rate only,
that would be due after the ROARS Remarketing Date to and including the next
succeeding Interest Rate Adjustment Date.

     "REMARKETING AGENT" shall mean such agent or agents, including any standby
remarketing agent (each a "STANDBY REMARKETING AGENT"), as the Company may
appoint from time to time for the purpose of remarketing of this Note, as set
forth in the remarketing agreement that the Company shall enter into prior to
the remarketing of such Notes.

     "ROARS COUPON RESET RATE" shall mean the rate equal to the Base Rate
established by a Callholder, after consultation with the Company, at or prior to
the commencement of the applicable ROARS Mode, plus the Applicable Spread, which
will be based on the Dollar Price.

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     "ROARS MODE" shall mean the Interest Rate Mode in which this Note shall
bear interest and be subject to remarketing as "Remarketable or Redeemable
Securities."

     "ROARS PERIOD" shall mean, if this Note is remarketed by the Initial
Callholder on the Initial ROARS Remarketing Date, that portion of the ROARS Rate
Period commencing on the Initial ROARS Remarketing Date up to, but excluding,
the next succeeding Interest Rate Adjustment Date. The ROARS Period is set forth
in Annex A hereto.

     "ROARS RATE PERIOD" shall mean an Interest Rate Period for this Note if in
a ROARS Mode established by the Company as a period of more than 364 days and
less than the remaining term to the Stated Maturity of such Note; PROVIDED,
HOWEVER, that such Interest Rate Period must end on the day prior to an Interest
Payment Date for such Note. The ROARS Rate Period shall consist of the period to
and excluding the ROARS Remarketing Date and the period from and including the
ROARS Remarketing Date to, but excluding, the next succeeding Interest Rate
Adjustment Date.

     "ROARS REMARKETING AGREEMENT" shall mean the agreement by and between the
Company and the Callholder dated as of the date commencing the applicable ROARS
Rate Period which sets forth the rights and obligations of the Company and the
Callholder with respect to the remarketing of Notes in the ROARS Mode.

     "ROARS REMARKETING DATE" shall mean the date designated by the Callholder,
after consultation with the Company, upon which the Callholder may elect to
remarket this Note at the ROARS Coupon Reset Rate.

     "REUTERS SCREEN U.S. PRIME 1 PAGE" shall mean the display designated as
page "U.S. PRIME 1" on the Reuters Monitor Money Rates Service (or any successor
service) on the U.S. PRIME 1 Page (or such other page as may replace the U.S.
PRIME 1 Page on such service) for the purpose of displaying prime rates or base
lending rates of major United States banks.

     "SPECIAL INTEREST RATE" shall have the meaning set forth below under
subsection (d) of "INTEREST RATE."

     "SPECIAL MANDATORY PURCHASE" shall mean the obligation of the Company to
purchase Notes not successfully remarketed by the Remarketing Agent and the
applicable Standby Remarketing Agent(s) by 3:00 p.m., New York City time, on any
Interest Rate Adjustment Date.

     "SPREAD" shall mean the number of basis points to be added to or subtracted
from the related Interest Rate Basis or Bases applicable to an Interest Rate
Period for such Note.

     "SPREAD MULTIPLIER" shall mean the percentage of the related Interest Rate
Basis or Bases applicable to an Interest Rate Period by which such Interest Rate
Basis or Bases will be multiplied to determine the applicable interest rate from
time to time for an Interest Rate Period.

     "STATED MATURITY" shall mean October 1, 2015.

     "TREASURY BILLS" shall have the meaning specified under "FLOATING INTEREST
RATES" below.

     "TREASURY RATE" shall have the meaning specified under "FLOATING INTEREST
RATES" below, except that with respect to the Initial ROARS Remarketing Date,
"Treasury Rate" shall mean the

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rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issues, assuming a price for the Comparable Treasury Issues
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the Initial ROARS Remarketing Date.

     "WEEKLY RATE PERIOD" is a Commercial Paper Term Period and will be a period
of seven days commencing on any Interest Rate Adjustment Date and ending on the
day preceding the first day of the next Interest Rate Period for such Note.

                                  INTEREST RATE

     (a) INITIAL INTEREST RATE. This Note will bear interest at the rate per
annum (assuming a 360-day year consisting of twelve 30-day months) during the
Initial Interest Rate Period identified as the Initial Interest Rate in Annex A
hereto.

     (b) SUBSEQUENT INTEREST RATES.(i) If the Initial Callholder elects to
purchase this Note as described herein, this Note will be subject to mandatory
tender to the Initial Callholder on the Initial ROARS Remarketing Date, except
in the limited circumstances described herein, and will, for the ROARS Period
bear interest at the ROARS Coupon Reset Rate as defined herein and which will be
set forth in Annex A hereto.

          (ii) If the Initial Callholder does not purchase this Note on the
Initial ROARS Remarketing Date, this Note automatically will be subject to
mandatory tender at 100% of the principal amount thereof for redemption on such
date by the Company or for remarketing on such date by a Remarketing Agent in a
Commercial Paper Term Mode, a Long Term Rate Mode or a new ROARS Mode and will
bear interest at a rate and for a period set forth in Annex A hereto.

          (iii) The interest rate and, in the case of a floating interest rate,
the Spread (if any) and the Spread Multiplier (if any) for this Note will be
announced by the applicable Remarketing Agent on or prior to the Interest Rate
Adjustment Date for the next succeeding Interest Rate Period, and will be the
minimum interest rate per annum and, in the case of a floating interest rate,
the Spread (if any) and the Spread Multiplier (if any) necessary, during the
Interest Rate Period commencing on such Interest Rate Adjustment Date, in the
judgement of the Remarketing Agent, to produce a par bid in the secondary market
for this Note on the date the interest rate is established. Such rate will be
effective for the next succeeding Interest Rate Period for this Note commencing
on such Interest Rate Adjustment Date.

     (c) FLOATING INTEREST RATES. The provisions governing floating interest
rates for this Note appear below under "FLOATING INTEREST RATES."

     (d) FAILURE OF REMARKETING AGENT OR AGENTS TO ANNOUNCE INTEREST. In the
event that (i) the applicable Remarketing Agent has been removed or has resigned
and no successor has been appointed, or (ii) such Remarketing Agent has failed
to announce the appropriate interest rate, Spread (if any) or Spread Multiplier
(if any), as the case may be, on the Interest Rate Adjustment Date of this Note
for whatever reason, or (iii) the appropriate interest rate, Spread (if any), or
Spread Multiplier (if any), as the case may be, or Interest Rate Period cannot
be determined for this Note for whatever reason, then the next succeeding
Interest Rate Period for this Note will be automatically converted to a Weekly
Rate Period, and the rate of interest thereon will be equal to the Federal Funds
Rate (the "SPECIAL INTEREST RATE").

     (e) NOTICE OF INTEREST RATE; BINDING EFFECT. After any Interest Rate
Adjustment Date of this Note, the Remarketing Agent or the Callholder, as the
case may be, will notify the Company and the

                                       11
<PAGE>

Trustee of the interest rate, Spread (if any) and the Spread Multiplier (if
any). Immediately upon receipt of such notice, the Trustee will transmit such
information to the Depositary in accordance with the Depositary's procedures as
in effect from time to time and note such rate in Annex A. The Trustee shall
confirm to the Depositary the interest rate for the following Interest Rate
Period in accordance with the Depositary's procedures as in effect from time to
time. Any Beneficial Owner may contact the Trustee or the Remarketing Agent in
order to be advised of the interest rate applicable to such Beneficial Owner's
remarketed Notes. No notice of the applicable interest rate will be sent to
Beneficial Owners.

     The interest rate and other terms announced by the Remarketing Agent,
absent manifest error, will be binding and conclusive upon the Beneficial
Owners, the Company and the Trustee.

     (f) CONVERSION. This Note may be converted at the option of the Company to
the Commercial Paper Term Mode, Long Term Rate Mode or ROARS Mode on any
Interest Rate Adjustment Date for this Note in accordance with the procedures
set forth in the Indenture, and will be subject to mandatory tender by the
Beneficial Owner thereof as described herein on such Interest Rate Adjustment
Date. The Beneficial Owner of this Note will be deemed to have automatically
tendered for purchase such Note on each Interest Rate Adjustment Date upon which
such conversion occurs and will not be entitled to further accrual of interest
on this Note after such date.

                                     TENDER

     This Note will be automatically tendered for purchase, or deemed tendered
for purchase, on each Interest Rate Adjustment Date relating hereto. Notes will
be purchased on such Interest Rate Adjustment Date in accordance with the
procedures set forth in "REMARKETING AND SETTLEMENT" or, as the case may be,
"ROARS MODE" below.

                           REMARKETING AND SETTLEMENT

     INTEREST RATE ADJUSTMENT DATE; DETERMINATION OF INTEREST RATE. By 11:00
a.m., New York City time, on the Interest Rate Adjustment Date for this Note,
the applicable Remarketing Agent will determine the interest rate for such Note
being remarketed to the nearest one hundred thousandth (0.00001) of one percent
per annum for the next Interest Rate Period in the case of a fixed interest
rate, and the Spread (if any) and Spread Multiplier (if any) in the case of a
floating interest rate; PROVIDED, that between 11:00 a.m., New York City time,
and 11:50 a.m., New York City time, the Remarketing Agent and the Standby
Remarketing Agent, if any, will use their reasonable efforts to determine the
interest rate for this Note if it is not successfully remarketed as of the
applicable deadline specified in this paragraph. In determining the applicable
interest rate for this Note and other terms, such Remarketing Agent will, after
taking into account market conditions as reflected in the prevailing yields on
fixed and variable rate taxable debt securities, (i) consider the principal
amount of all Notes tendered or to be tendered on such date and the principal
amount of such Notes prospective purchasers are or may be willing to purchase
and (ii) contact, by telephone or otherwise, prospective purchasers and
ascertain the interest rates therefor at which they would be willing to hold or
purchase such Notes.

     NOTIFICATION OF RESULTS; SETTLEMENT. By 12:30 p.m., New York City time, on
the Interest Rate Adjustment Date of this Note, the applicable Remarketing Agent
will notify the Company and the Trustee in writing (which may include facsimile
or other electronic transmission), of (i) the interest rate or, in the case of a
floating interest rate, the initial interest rate, the Spread and Spread
Multiplier and the initial Interest Reset Date, applicable to this Note for the
next Interest Rate Period, (ii) the Interest Rate Adjustment Date, (iii) the
Interest Payment Dates if this Notes is in the Commercial Paper Term Mode (if
other than the Interest Rate Adjustment Date), the Long Term Rate Mode or the
ROARS Mode, (iv)

                                       12
<PAGE>

the optional redemption terms, if any, and early remarketing terms, if any, in
the case of a remarketing into a Long Term Rate Period, (v) the aggregate
principal amount of all tendered Notes and (vi) the aggregate principal amount
of such tendered Notes that such Remarketing Agent was able to remarket, at a
price equal to 100% of the principal amount thereof plus accrued interest, if
any. Immediately after receiving such notice and, in any case, not later than
1:30 p.m., New York City time, the Trustee will transmit such information and
any other settlement information required by the Depositary to the Depositary in
accordance with the Depositary's procedures as in effect from time to time.

     By telephone at approximately 1:00 p.m., New York City time, on such
Interest Rate Adjustment Date, the applicable Remarketing Agent will advise each
purchaser of this Note (or the DTC Participant of each such purchaser who it is
expected in turn will advise such purchaser) of the principal amount of such
Notes that such purchaser is to purchase.

     Each purchaser of this Note in a remarketing will be required to give
instructions to its DTC Participant to pay the purchase price therefor in same
day funds to the applicable Remarketing Agent against delivery of the principal
amount of this Note by book-entry through the Depositary by 3:00 p.m., New York
City time, on the Interest Rate Adjustment Date.

     When tendered, or deemed tendered, this Note will be automatically
delivered to the account of the Trustee (or such other account meeting the
requirements of the Depositary's procedures as in effect from time to time), by
book-entry through the Depositary against payment of the purchase price or
redemption price therefor, on the Interest Rate Adjustment Date relating
thereto.

     The applicable Remarketing Agent will make, or cause the Trustee to make,
payment to the DTC participant of each tendering Beneficial Owner of Notes
subject to a remarketing, by book-entry through the Depositary by the close of
business on the Interest Rate Adjustment Date against delivery through the
Depositary of such Beneficial Owner's tendered Notes, of the purchase price for
tendered Notes that have been sold in the remarketing. If this Note was
purchased pursuant to a Special Mandatory Purchase, subject to receipt of funds
from the Company or, if applicable, an institution providing credit support, as
the case may be, the Trustee will make such payment of the purchase price of
this Notes plus accrued interest, if any, to such date.

     The transactions described above for a remarketing of this Note will be
executed on the Interest Rate Adjustment Date for this Note through the
Depositary in accordance with the procedures of the Depositary, and the accounts
of the respective DTC Participants will be debited and credited and such Notes
delivered by book-entry as necessary to effect the purchases and sales thereof,
in each case as determined in the related remarketing.

     Except as otherwise set forth below, this Note when tendered in a
remarketing will be purchased solely out of the proceeds received from
purchasers of this Note in such remarketing, and none of the Trustee, the
applicable Remarketing Agent, any Standby Remarketing Agent or the Company will
be obligated to provide funds to make payment upon any Beneficial Owner's tender
in a remarketing.

     Although tendered Notes will be subject to purchase by a Remarketing Agent
in a remarketing, such Remarketing Agent and any Standby Remarketing Agent will
not be obligated to purchase any such Notes.

     The settlement and remarketing procedures described above, including
provisions for payment by purchasers of tendered Notes or for payment to selling
Beneficial Owners of tendered Notes, may be modified to the extent required by
the Depositary. In addition, each Remarketing Agent may, in

                                       13
<PAGE>

accordance with the terms of the Indenture, modify the settlement and
remarketing procedures set forth above in order to facilitate the settlement and
remarketing process.

     As long as the Depositary's nominee holds the certificates representing
this Note in the book-entry system of the Depositary, no certificates for this
Note will be delivered by any selling Beneficial Owner to reflect any transfer
of Notes effected in any remarketing.

     FAILED REMARKETING. If on any Interest Rate Adjustment Date for this Note
the applicable Remarketing Agent and applicable Standby Remarketing Agent(s)
have not successfully remarketed this Note, it will be subject to Special
Mandatory Purchase by the Company, as described under "REDEMPTION AND
ACCELERATION - Special Mandatory Purchase" below.

                              TRANSFER OR EXCHANGE

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registerable in the Security Register, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of (and premium, if any) and
interest on this Note are payable, 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 Notes of this series and of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons and, except
for such Notes issued in book-entry form, only in denominations of $100,000 and
any integral multiple of $1,000. As provided in the Indenture and subject to
certain limitations therein set forth, this Note is exchangeable for a like
aggregate principal amount of Notes of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

     No service charge shall be made for any such registration of transfer or
exchange, but the 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 Note for registration of transfer, the
Company or the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

                           REDEMPTION AND ACCELERATION

     SPECIAL MANDATORY PURCHASE. Subject to certain exceptions, if on any
Interest Rate Adjustment Date for this Note, the applicable Remarketing Agent
and applicable Standby Remarketing Agent(s) have not remarketed all the Notes,
Notes that have not been remarketed are subject to Special Mandatory Purchase by
the Company. The Company shall be obligated to pay all accrued and unpaid
interest, if any, on unremarketed Notes to such Interest Rate Adjustment Date.
Payment of the principal amount of unremarketed Notes by the Company, and
payment of accrued and unpaid interest, if any, by the Company, will be made by
deposit of same-day funds with the Trustee (or such other account meeting the
requirements of the Depositary's procedures as in effect from time to time)
irrevocably in trust for the benefit of the Beneficial Owners of Notes subject
to Special Mandatory Purchase by 3:00 p.m., New York City time, on such Interest
Rate Adjustment Date.

                                       14
<PAGE>

     Failure by the Company to purchase this Note pursuant to a Special
Mandatory Purchase will constitute an Event of Default under the Indenture in
which event the date of such failure shall constitute a date of Maturity for
this Note and the principal thereof may be declared due and payable in the
manner and with the effect provided in the Indenture. Following such failure to
pay pursuant to a Special Mandatory Purchase, this Note will bear interest at
the Special Interest Rate as provided above "INTEREST RATE."

     OPTIONAL REDEMPTION ON ANY INTEREST RATE ADJUSTMENT DATE. This Note is
subject to redemption at the option of the Company in whole or in part on any
Interest Rate Adjustment Date relating thereto without notice to the holders
thereof at a redemption price equal to 100% of the principal amount set forth in
Annex A hereto.

     REDEMPTION WHILE THIS NOTE IS IN THE LONG TERM RATE MODE. If this Note is
in the Long Term Rate Mode, it is subject to redemption at the option of the
Company at the times and upon the terms specified at the time of conversion to
or within such Long Term Rate Mode as set forth in Annex A hereto.

     Notice of redemption shall be given by mail to the registered owner of this
Note, not less than 30 nor more than 60 days prior to the Redemption Date, all
as provided in the Indenture. The Company shall not be required to (a) issue,
register the transfer of or exchange Notes of this series during a period
beginning at the opening of business 15 days before the day of the mailing of
the relevant notice of redemption and ending at the close of business on the day
of such mailing or (b) register the transfer of or exchange any Notes selected
for redemption, in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     In the event of redemption of this Note in part only, a new Note or Notes
of this series, of like tenor, for the unredeemed portion hereof will be issued
in the name of the registered owner hereof upon the cancellation hereof.

     ALLOCATION. Except in the case of a Special Mandatory Purchase, if this
Note is to be redeemed in part, the Depositary, after receiving notice of
redemption specifying the aggregate principal amount of this Note to be so
redeemed, will determine by lot (or otherwise in accordance with the procedures
of the Depositary) the principal amount this Note to be redeemed from the
account of each DTC Participant. After making its determination as described
above, the Depositary will give notice of such determination to each DTC
Participant from whose account this Notes is to be redeemed. Each such DTC
Participant, upon receipt of such notice will in turn determine the principal
amount of this Note to be redeemed from the accounts of the Beneficial Owners of
this Note for which it serves as DTC Participant, and give notice of such
determination to the Remarketing Agent.

     ACCELERATION. If any Event of Default with respect to the Notes shall occur
and be continuing, the principal of the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

                                   ROARS MODE

     Notwithstanding anything herein to the contrary, the provisions of this
section shall apply to this Note when it is in a ROARS Mode and shall supersede
any conflicting provisions of general applicability contained elsewhere herein,
during the period from, and including, the commencement of a ROARS Rate Period
to, but excluding, the next succeeding Interest Rate Adjustment Date (or, if the
Callholder does not elect to purchase this Note on the applicable ROARS
Remarketing Date designated

                                       15
<PAGE>

for such ROARS Mode or if after electing to so purchase this Note the Callholder
fails to so purchase this Note for any reason, to the ROARS Remarketing Date).
During the period in which this Note is in a ROARS Mode, this Note shall bear
interest and be subject to remarketing by the applicable Callholder designated
by the Company as described herein and identified in Annex A hereto.

     With respect to this Note in the ROARS Rate Period commencing on the
Original Issue Date, references herein to (i) the Callholder and ROARS
Remarketing Date shall mean the Initial Callholder and the Initial ROARS
Remarketing Date and (ii) the Interest Rate Adjustment Date on which the ROARS
Rate Period commences shall mean the Original Issue Date.

     (a) INTEREST TO ROARS REMARKETING DATE. The Interest Rate Period for this
Note in the ROARS Mode will be established by the Company (as described under
"INTEREST RATE" above) as a period of more than 364 days and not exceeding the
remaining term to the Stated Maturity of this Note; PROVIDED, HOWEVER, that such
Interest Rate Period must end on the day prior to an Interest Payment Date for
this Note. A ROARS Rate Period shall consist of the period to and excluding the
ROARS Remarketing Date and the period from and including the ROARS Remarketing
Date to but excluding the next succeeding Interest Rate Adjustment Date (set
forth in Annex A hereto), or, if the Remarketing Agent does not purchase the
Notes thereon, the Interest Rate Adjustment Date. The interest rate and, in the
case of a floating interest rate, the Spread (if any), and the Spread Multiplier
(if any), to the ROARS Remarketing Date for this Note if it is in the ROARS Mode
will be determined not later than 11:50 a.m., New York City time, on the
Interest Rate Adjustment Date of this Note, which for the ROARS Mode is the
first day of each Interest Rate Period for this Note. Such interest rate will be
the minimum rate of interest and, in the case of a floating interest rate,
Spread (if any) and Spread Multiplier (if any) necessary in the judgment of such
Callholder to produce a par bid in the secondary market for this Note on the
date the interest is established. The designated ROARS Remarketing Date shall be
an Interest Payment Date within such Interest Rate Period.

     (b) MANDATORY TENDER. Provided that the Callholder gives notice to the
Company and the Trustee on or before the Notification Date of its intention to
purchase the Notes for remarketing, this Note will be automatically tendered to
such Callholder for purchase on the applicable ROARS Remarketing Date, except in
the circumstances described under "Conversion or Redemption" below. The purchase
price for the tendered Notes to be paid by the Callholder will be equal to 100%
of the aggregate principal amount thereof. When this Note is tendered to the
Callholder for remarketing, the Callholder may remarket the Note for its own
account at varying prices to be determined by the Callholder at the time of each
sale. If the Callholder elects to remarket the Note, the obligation of the
Callholder to purchase the Note on the ROARS Remarketing Date is subject to
certain condition including no material adverse change in the condition of the
Company and its subsidiaries, considered as one enterprise, shall have occurred
and that no Event of Default (as defined in the Indenture), or any event which,
with the giving of notice or passage of time, or both, would constitute an Event
of Default, with respect to this Note shall have occurred and be continuing.

     (c) REMARKETING; ROARS COUPON RESET RATE. The ROARS Coupon Reset Rate will
be determined by the Callholder by 3:30 p.m., New York City time, on the
Determination Date to the nearest one hundred-thousandth (0.00001) of one
percent per annum, and will be equal to the sum of the Base Rate and the
Applicable Spread, which will be based on the Dollar Price of the Notes as of
the ROARS Remarketing Date.

     (d) NOTIFICATION OF RESULTS; SETTLEMENT. Provided the Callholder has
previously notified the Company and the Trustee on the Notification Date of its
intention to purchase all tendered Notes on the ROARS Remarketing Date, the
Callholder will notify the Company, the Trustee and the Depositary by

                                       16
<PAGE>

telephone, confirmed in writing, by 4:00 p.m., New York City time, on the
Determination Date, of the ROARS Coupon Reset Rate.

     If the Callholder does not elect to purchase this Note for remarketing on
the ROARS Remarketing Date or if the Callholder gives notice of its election to
remarket this Note but for any reason does not purchase all tendered Notes on
the ROARS Remarketing Date, then this Note will be subject to remarketing on
such date by a Remarketing Agent appointed by the Company in the Commercial
Paper Term Mode or the Long Term Rate Mode or a new ROARS Mode established by
the Company; PROVIDED that, in such case, the notice period required for
conversion shall be the lesser of ten (10) days and the period commencing the
date that the Callholder notifies the Company that it will not purchase the
Notes for remarketing on the ROARS Remarketing Date or fails to so purchase, as
the case may be.

     The tendered Note will be automatically delivered to the account of the
Trustee, by book-entry through the Depositary pending payment of the purchase
price therefor, on the applicable ROARS Remarketing Date.

     The Callholder will make or cause the Trustee to make payment to the
Participant of each tendering Beneficial Owner of Notes, by book-entry through
the Depositary by the close of business on the ROARS Remarketing Date against
delivery through the Depositary by the close of business on the ROARS
Remarketing Date of such Beneficial Owner's tendered Notes.

     The transactions described above will be executed on the ROARS Remarketing
Date through the Depositary in accordance with the procedures of the Depositary,
and the accounts of the respective DTC Participants will be debited and credited
and the Notes delivered by book-entry as necessary to effect the purchases and
sales thereof.

     Transactions involving the sale and purchase of the Notes remarketed by a
Callholder on or after a ROARS Remarketing Date will settle in immediately
available funds through the Depositary's Same-Day Funds Settlement System.

     The tender and settlement procedures described above, including provisions
for payment by purchasers of Notes in the remarketing or for payment to selling
Beneficial Owners of tendered Notes, may be modified, notwithstanding any
contrary terms of the Indenture, to the extent required by the Depositary or, if
the book-entry system is no longer available this Note at the time of the
remarketing, to the extent required to facilitate the tendering and remarketing
of this Note in certificated form. In addition, the Callholder may,
notwithstanding any contrary terms of the Indenture, modify the settlement
procedures set forth above in order to facilitate the settlement process.

     As long as the Depositary's nominee holds the certificates representing any
Notes in the book-entry system of the Depositary, no certificates for this Note
will be delivered by any selling Beneficial Owner to reflect any transfer of
such Notes effected in the remarketing. In addition, under the terms of this
Note, the Company has agreed that, notwithstanding any provision to the contrary
set forth in the Indenture, (a) it will use reasonable commercial efforts to
maintain this Note in book-entry form with the Depositary or any successor
thereto and to appoint a successor depositary to the extent necessary to
maintain this Note in book-entry form and (b) it will waive any discretionary
right it otherwise has under the Indenture to cause this Note to be issued in
certificated form.

     (e) CONVERSION OR REDEMPTION. If the Callholder elects to remarket the
Notes on the ROARS Remarketing Date, this Note will be subject to mandatory
tender to the Callholder for remarketing on such date, subject to the Company's
right to convert the Note to a new Interest Rate

                                       17
<PAGE>

Mode or to redeem the Note from the Callholder, in each case as described in the
next sentence. The Company will notify the Callholder and the Trustee not later
than the Business Day immediately preceding the Determination Date if the
Company irrevocably elects to exercise its right to either convert the Note to a
new Interest Rate Mode or to redeem the Note from the Callholder at the Optional
Redemption Price, in each case, on the applicable ROARS Remarketing Date.

     In the event that the Company irrevocably elects to convert the Note to a
new Interest Rate Mode, then as of the ROARS Remarketing Date, this Note will be
subject to remarketing on such date by a Remarketing Agent appointed by the
Company in a new ROARS Mode, a Long Term Rate Mode or a Commercial Paper Term
Mode established by the Company in accordance with the procedures set forth
herein; PROVIDED that, in such case, the notice required for conversion shall be
given no later than 3:30 p.m. New York City time on the Initial Determination
Date. In such case, the Company shall pay to the Initial Callholder the excess
of the Dollar Price of the Notes over 100% of the principal amount of the Notes
in same-day funds by wire transfer to an account designated by the Initial
Callholder.

     In the event that the Company irrevocably elects to redeem this Note from
the Callholder, it shall pay such Callholder the Optional Redemption Price in
same-day funds by wire transfer to an account designated by the Callholder on
the ROARS Remarketing Date.

     If notice has been given as provided in the Indenture and funds for the
redemption of this Note called for redemption shall have been made available on
the redemption date referred to in such notice, this Note shall cease to bear
interest on the date fixed for such redemption specified in such notice and the
only right of the Callholder from and after the redemption date shall be to
receive payment of the Optional Redemption Price upon surrender of this Note in
accordance with such notice.

                             FLOATING INTEREST RATES

     While this Note bears interest in the Long Term Rate Mode or the ROARS Mode
(with respect to the period from, and including, the Interest Rate Adjustment
Date commencing such period to, but excluding, the ROARS Remarketing Date), the
Company may elect a floating interest rate by providing a notice, which will be
submitted or promptly confirmed in writing (which includes facsimile or
appropriate electronic media), received by the Trustee and the Remarketing Agent
(a "FLOATING INTEREST RATE NOTICE") for such Note not less than ten (10) days
prior to the Interest Rate Adjustment Date for such Long Term Rate Period or
ROARS Rate Period. The Floating Interest Rate Notice must identify by CUSIP
number or otherwise the portion of the Note to which it relates and state the
Interest Rate Period (or portion thereof, in the case of the ROARS Mode)
therefor to which it relates. Each Floating Interest Rate Notice must also state
the Interest Rate Basis or Bases, the initial Interest Reset Date, the Interest
Reset Period and Interest Reset Dates, the Interest Rate Period and Interest
Payment Dates, the Index Maturity and the Floating Rate Maximum Interest Rate
and/or Floating Rate Minimum Interest Rate, if any. If one or more of the
applicable Interest Rate Bases is LIBOR or the CMT Rate, the Floating Interest
Rate Notice will also specify the Index Currency and Designated LIBOR Page or
the Designated CMT Maturity Index and Designated CMT Telerate Page,
respectively.

     If this Note bears interest at a floating rate in a Long Term Rate Period
or ROARS Rate Period, such Note will bear interest at the rate determined by
reference to the applicable Interest Rate Basis or Bases (a) plus or minus the
Spread, if any, and/or (b) multiplied by the Spread Multiplier, if any,
specified by the Remarketing Agent, in the case of a Long Term Rate Period, or
the Callholder, in the case of a ROARS Rate Period. Commencing on the Interest
Rate Adjustment Date for such Interest Rate Period, the rate at which interest
on such Note will be payable will be reset as of each Interest Reset Date during
such Interest Rate Period specified in the applicable Floating Interest Rate
Notice.

                                       18
<PAGE>

     The applicable floating interest rate on this Note during any Interest Rate
Period will be determined by reference to the applicable Interest Rate Basis or
Interest Rate Bases, which may include (i) the CD Rate, (ii) the CMT Rate, (iii)
the Federal Funds Rate, (iv) LIBOR, (v) the Prime Rate, (vi) the Treasury Rate
or (vii) such other Interest Rate Basis or interest rate formula as may be
specified in the applicable Floating Interest Rate Notice (each, an "INTEREST
RATE BASIS").

     Unless otherwise specified in the applicable Floating Interest Rate Notice,
the interest rate with respect to each Interest Rate Basis will be determined in
accordance with the applicable provisions below. Except as set forth above or in
the applicable Floating Interest Rate Notice, the interest rate in effect on
each day will be (i) if such day is an Interest Reset Date, the interest rate
determined as of the Interest Determination Date immediately preceding such
Interest Reset Date or (ii), if such day is not an Interest Reset Date, the
interest rate determined as of the Interest Determination Date immediately
preceding the most recent Interest Reset Date. If any Interest Reset Date would
otherwise be a day that is not a Business Day, such Interest Reset Date will be
postponed to the next succeeding Business Day, unless LIBOR is an applicable
Interest Rate Basis and such Business Day falls in the next succeeding calendar
month, in which case such Interest Reset Date will be the immediately preceding
Business Day. In addition, if the Treasury Rate is an applicable Interest Rate
Basis and the Interest Determination Date would otherwise fall on an Interest
Reset Date, then such Interest Reset Date will be postponed to the next
succeeding Business Day.

     The applicable Floating Interest Rate Notice will specify whether the rate
of interest will be reset daily, weekly, monthly, quarterly, semiannually or
annually or on such other specified basis (each, an "INTEREST RESET PERIOD") and
the dates on which such rate of interest will be reset (each, an "INTEREST RESET
DATE"). Unless otherwise specified in the applicable Floating Interest Rate
Notice, the Interest Reset Dates will be, in the case of a floating interest
rate which resets: (i) daily, each Business Day; (ii) weekly, the Wednesday of
each week (unless the Treasury Rate is an applicable Interest Rate Basis, in
which case the Tuesday of each week except as described below); (iii) monthly,
the third Wednesday of each month; (iv) quarterly, the third Wednesday of March,
June, September and December of each year, (v) semiannually, the third Wednesday
of the two months specified in the applicable Floating Interest Rate Notice; and
(vi) annually, the third Wednesday of the month specified in the applicable
Floating Interest Rate Notice.

     The interest rate applicable to each Interest Reset Period commencing on
the related Interest Reset Date will be the rate determined as of the applicable
Interest Determination Date. The "Interest Determination Date" with respect to
the CD Rate, the CMT Rate, the Federal Funds Rate and the Prime Rate will be the
second Business Day immediately preceding the applicable Interest Reset Date;
and the "Interest Determination Date" with respect to LIBOR will be the second
London Business Day immediately preceding the applicable Interest Reset Date,
unless the Index Currency is British pounds sterling, in which case the
"Interest Determination Date" will be the applicable Interest Reset Date. The
"Interest Determination Date" with respect to the Treasury Rate will be the day
within the week in which the applicable Interest Reset Date falls upon which day
Treasury Bills (as defined below) are normally auctioned (Treasury Bills are
normally sold at an auction held on Monday of each week, unless that day is a
legal holiday, in which case the auction is normally held on the following
Tuesday, except that such auction may be held on the preceding Friday);
PROVIDED, HOWEVER, that if an auction is held on the Friday of the week
preceding the applicable Interest Reset Date, the "Interest Determination Date"
will be such preceding Friday. If the interest rate of this Note is a floating
interest rate determined with reference to two or more Interest Rate Bases
specified in the applicable Floating Interest Rate Notice, the "Interest
Determination Date" pertaining to this Note will be the most recent Business Day
which is at least two Business Days prior to the applicable Interest Reset Date
on which each Interest Rate Basis is

                                       19
<PAGE>

determinable. Each Interest Rate Basis will be determined as of such date, and
the applicable interest rate will take effect on the related Interest Reset
Date.

     Either or both of the following may also apply to the floating interest
rate on this Note for an Interest Rate Period: (i) a floating rate maximum
interest rate, or ceiling, that may accrue during any Interest Reset Period (the
"FLOATING RATE MAXIMUM INTEREST RATE") and (ii) a floating rate minimum interest
rate, or floor, that may accrue during any Interest Reset Period (the "FLOATING
RATE MINIMUM INTEREST RATE"). In addition to any Floating Rate Maximum Interest
Rate that may apply, the interest rate on this Note will in no event be higher
than the maximum rate permitted by New York law, as the same may be modified by
United States laws of general application.

     Except as provided below or in the applicable Floating Interest Rate
Notice, interest will be payable, in the case of floating interest rates which
reset: (i) daily, weekly or monthly, on the third Wednesday of each month or on
the third Wednesday of March, June, September and December of each year, as
specified in the applicable Floating Interest Rate Notice; (ii) quarterly, on
the third Wednesday of March, June, September and December of each year; (iii)
semiannually, on the third Wednesday of the two months of each year specified in
the applicable Floating Interest Rate Notice; and (iv) annually, on the third
Wednesday of the month of each year specified in the applicable Floating
Interest Rate Notice and, in each case, on the Business Day immediately
following the applicable Long Term Rate Period or ROARS Rate Period, as the case
may be. If any Interest Payment Date for the payment of interest at a floating
rate (other than following the end of the applicable Long Term Rate Period or
ROARS Rate Period, as the case may be) would otherwise be a day that is not a
Business Day, such Interest Payment Date will be postponed to the next
succeeding Business Day, except that if LIBOR is an applicable Interest Rate
Basis and such Business Day falls in the next succeeding calendar month, such
Interest Payment Date will be the immediately preceding Business Day.

     All percentages resulting from any calculation of floating interest rates
will be rounded to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upwards (e.g., 9.876545%
(or .09876545) would be rounded to 9.87655% (or .0987655)), and all amounts used
in or resulting from such calculation will be rounded, in the case of United
States dollars, to the nearest cent or, in the case of a foreign currency or
composite currency, to the nearest unit (with one-half cent or unit being
rounded upwards).

     Accrued floating rate interest will be calculated by multiplying the
principal amount of the this Note by an accrued interest factor. Such accrued
interest factor will be computed by adding the interest factor calculated for
each day in the applicable Interest Reset Period. Unless otherwise specified in
the applicable Floating Interest Rate Notice, the interest factor for each such
day will be computed by dividing the interest rate applicable to such day by
360, if an applicable Interest Rate Basis is the CD Rate, the Federal Funds
Rate, LIBOR or the Prime Rate, or by the actual number of days in the year if an
applicable Interest Rate Basis is the CMT Rate or the Treasury Rate. Unless
otherwise specified in the applicable Floating Interest Rate Notice, if the
floating interest rate is calculated with reference to two or more Interest Rate
Bases, the interest factor will be calculated in each period in the same manner
as if only one of the applicable Interest Rate Bases applied as specified in the
applicable Floating Interest Rate Notice.

     If this Note bears interest at a floating rate, the applicable Remarketing
Dealer will determine the interest rate in effect from the Interest Rate
Adjustment Date for this Note to the initial Interest Reset Date. A calculation
agent selected by the Company (a "CALCULATION AGENT") will determine the
interest rate in effect for each Interest Reset Period thereafter. Upon request
of the Beneficial Owner of this Note, after any Interest Rate Adjustment Date,
the Calculation Agent or the Remarketing Dealer will

                                       20
<PAGE>

disclose the interest rate and, in the case of a floating interest rate,
Interest Rate Basis or Bases, Spread (if any) and Spread Multiplier (if any),
and in each case the other terms applicable to this Note then in effect and, if
determined, the interest rate that will become effective as a result of a
determination made for the next succeeding Interest Reset Date with respect to
this Note. Except as described herein if this Note is earning interest at
floating rates, no notice of the applicable interest rate, Spread (if any) or
Spread Multiplier (if any) will be sent to the Beneficial Owner of this Note.

     Unless otherwise specified in the applicable Floating Interest Rate Notice,
the "CALCULATION DATE," if applicable, pertaining to any Interest Determination
Date will be the earlier of (i) the tenth calendar day after such Interest
Determination Date or, if such day is not a Business Day, the next succeeding
Business Day or (ii) the Business Day immediately preceding the applicable
Interest Payment Date or Maturity, as the case may be.

     CD RATE. If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "CD RATE," the CD Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to the CD Rate (a "CD RATE
INTEREST DETERMINATION DATE"), the rate on such date for negotiable United
States dollar certificates of deposit having the Index Maturity specified in the
applicable Floating Interest Rate Notice as published in H.15(519) under the
heading "CDs (Secondary Market)," or, if not published by 9:00 a.m., New York
City time, on the related Calculation Date, the CD Rate will be the rate on such
CD Rate Interest Determination Date set forth in the daily update of H.15(519) ,
available through the world wide website 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 ("H.15 Daily Update") for the day in respect of
certificates of deposit having the Index Maturity specified in the applicable
Floating Interest Rate Notice under the caption "CDs (Secondary Market)." If
such rate is not yet published in either H.15(519) or the H.15 Daily Update by
3:00 p.m., New York City time, on the related Calculation Date, then the CD Rate
on such CD Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the arithmetic mean of the secondary market
offered rates as of 10:00 a.m., New York City time, on such CD Rate Interest
Determination Date, of three leading nonbank dealers in negotiable United States
dollar certificates of deposit in the City of New York (which may include the
Remarketing Agent or its affiliates) selected by the Calculation Agent, after
consultation with the Company, for negotiable United States dollars certificates
of deposit of major United States money center banks of the highest credit
standing in the market for negotiable certificates of deposit with a remaining
maturity closest to the Index Maturity specified in the applicable Floating
Interest Rate Notice in an amount that is representative for a single
transaction in that market at that time; PROVIDED, HOWEVER, that if the dealers
so selected by the Calculation Agent are not quoting as mentioned in this
sentence, the CD Rate determined as of such CD Rate Interest Determination Date
will be the CD Rate in effect on such CD Rate Interest Determination Date.

     CMT RATE. If an Interest Rate Basis for this Note is specified in the
applicable Floating Interest Rate Notice as the "CMT RATE," the CMT Rate shall
mean, with respect to any Interest Determination Date relating to this Note for
which the interest rate is determined with reference to the CMT Rate (a "CMT
RATE INTEREST DETERMINATION DATE"), 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 7055, the rate on such CMT Rate
Interest Determination Date and (ii) if the Designated CMT Telerate Page is
7052, the weekly or monthly average, as specified in the Floating Interest Rate
Notice, for the week or the month, as applicable, ended immediately preceding
the week or the month, as applicable, in which the related CMT Rate Interest
Determination Date occurs. If such rate is no longer displayed on the relevant
page or is

                                       21
<PAGE>

not displayed by 3:00 p.m., New York City time, on the related Calculation Date,
then the CMT Rate for such CMT Rate Interest Determination Date will be such
treasury constant maturity rate for the Designated CMT Maturity Index as
published in H.15(519). If such rate is no longer published or is not published
by 3:00 p.m., New York City time, on the related Calculation Date, then the CMT
Rate on such CMT Rate Interest Determination Date will be such treasury constant
maturity rate for the Designated CMT Maturity Index (or other United States
Treasury rate for the Designated CMT Maturity Index) for the CMT Rate Interest
Determination Date with respect to such Interest Reset Date 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
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 related Calculation Date, then the CMT Rate on
the CMT Rate Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity, based on the arithmetic mean of the
secondary market closing offer side prices as of approximately 3:30 p.m., New
York City time, on such CMT Rate Interest Determination Date reported, according
to their written records, by three leading primary United States government
securities dealers (each, a "REFERENCE DEALER") in the City of New York (which
may include the Remarketing Agent or its affiliates) selected by the Calculation
Agent after consultation with the Company (from five such Reference Dealers
selected by the Calculation Agent, after consultation with the Company, and
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest)), for the most recently issued direct noncallable fixed rate obligations
of the United States ("TREASURY NOTES") with an original maturity of
approximately the Designated CMT Maturity Index and a remaining term to maturity
of not less than such Designated CMT Maturity Index minus one year. If the
Calculation Agent is unable to obtain three such Treasury Note quotations, the
CMT Rate on such CMT Rate Interest Determination Date will be calculated by the
Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market offer side prices as of approximately 3:30 p.m., New
York City time, on such CMT Rate Interest Determination Date of three Reference
Dealers in the City of New York (from five such Reference Dealers selected by
the Calculation Agent, after consultation with the Company, and eliminating the
highest quotation (or, in the event of equality, one of the highest) and the
lowest quotation (or, in the event of equality, one of the lowest)), for
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 and in an amount of at least U.S.
$100 million. If three or four (and not five) of such Reference Dealers are
quoting as described above, then the CMT Rate will be based on the arithmetic
mean of the offer prices obtained and neither the highest nor the lowest of such
quotes will be eliminated; PROVIDED, HOWEVER, that if fewer than three Reference
Dealers so selected by the Calculation Agent, after consultation with the
Company, are quoting as mentioned herein, the CMT Rate determined as of such CMT
Rate Interest Determination Date will be the CMT Rate in effect on such CMT Rate
Interest Determination Date. If two Treasury Notes with an original maturity as
described in the second preceding sentence have remaining terms to maturity
equally close to the Designated CMT Maturity Index, the Calculation Agent, after
consultation with the Company, will obtain from five Reference Dealers
quotations for the Treasury Note with the shorter remaining term to maturity.

     FEDERAL FUNDS RATE. If an Interest Rate Basis for any Note is specified in
the applicable Floating Interest Rate Notice as the "FEDERAL FUNDS RATE," the
Federal Funds Rate shall mean, with respect to any Interest Determination Date
relating to a Note for which the interest rate is determined with reference to
the Federal Funds Rate (a "FEDERAL FUNDS RATE INTEREST DETERMINATION DATE"), the
rate on such date for United States dollar federal funds as published in
H.15(519) under the heading "Federal Funds (Effective)" as displayed on Bridge
Telerate, Inc. (or any successor service) on page 120 or any other page as may
replace the applicable page on that service ("Telerate Page 120"). If such rate
is not

                                       22
<PAGE>

displayed on Telerate Page 120 or is not published by 9 a.m., New York City
time, on the related Calculation Date, the Federal Funds Rate will be the rate
on such Federal Funds Rate Interest Determination Date as published in the H.15
Daily Update under the heading "Federal Funds/(Effective)." If no such rate is
published in either H.15(519) or H.15 Daily Update by 3 p.m., New York City
time, on the related Calculation Date, then the Federal Funds Rate on such
Federal Funds Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the arithmetic mean of the rates for the last
transaction in overnight United States dollar federal funds arranged by three
leading brokers of federal funds transactions in The City of New York (which may
include the Remarketing Agent or its affiliates) selected by the Calculation
Agent after consultation with the Company, prior to 9:00 a.m., New York City
time, on such Federal Funds Rate Interest Determination Date; PROVIDED, HOWEVER,
that if the brokers so selected by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate determined as of such Federal
Funds Rate Interest Determination Date shall be the Federal Funds Rate in effect
on such Federal Funds Rate Interest Determination Date.

     LIBOR. If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as "LIBOR," LIBOR shall mean the rate
determined by the Calculation Agent as of the applicable Interest Determination
Date (a "LIBOR INTEREST DETERMINATION DATE") in accordance with the following
provisions:

          (i) If (a) "LIBOR Reuters" is specified in the applicable Floating
     Interest Rate Notice, the arithmetic mean of the offered rates (unless the
     Designated LIBOR Page by its terms provides only for a single rate, in
     which case such single rate will be used) for deposits in the Index
     Currency having the Index Maturity specified in the applicable Floating
     Interest Rate Notice, commencing on the second London Business Day
     immediately following such LIBOR Interest Determination Date, that appear
     on the Designated LIBOR Page as of 11:00 a.m., London time, on that LIBOR
     Interest Determination Date, if at least two such offered rates appear
     (unless, as aforesaid, only a single rate is required) on such Designated
     LIBOR Page, or (b) "LIBOR Telerate" is specified in the applicable Floating
     Interest Rate Notice, the rate for deposits in the Index Currency having
     the Index Maturity designated in the applicable Floating Interest Rate
     Notice, commencing on the second London Business Day immediately following
     such LIBOR Interest Rate Determination Date, that appears on such
     Designated LIBOR Page as of 11:00 a.m., London time, on that LIBOR Interest
     Determination Date. If fewer than two such offered rates appear (if "LIBOR
     Reuters" is specified in the applicable Floating Interest Rate Notice), or
     if no such rate appears (if "LIBOR Telerate" is specified in the applicable
     Floating Interest Rate Notice), LIBOR on such LIBOR Interest Determination
     Date will be determined in accordance with the provisions described below.

          (ii) With respect to a LIBOR Interest Determination Date on which
     fewer than two such offered rates appear (if "LIBOR Reuters" is specified
     in the applicable Floating Interest Rate Notice), or if no such rate
     appears (if "LIBOR Telerate" is specified in the applicable Floating
     Interest Rate Notice), the Calculation Agent shall request the principal
     London offices of each of four major reference banks in the London
     interbank market, as selected by the Calculation Agent, to provide the
     Calculation Agent with its offered quotation for deposits in the Index
     Currency for the period of the Index Maturity specified in the applicable
     Floating Interest Rate Notice, commencing on the second London Business Day
     immediately following such LIBOR Interest Determination Date, to prime
     banks in the London interbank market at

                                       23
<PAGE>

     approximately 11:00 a.m., London time, on such LIBOR Interest Determination
     Date and in a principal amount that is representative of a single
     transaction in such Index Currency in such market at such time.

          (iii) If at least two such quotations are provided, LIBOR determined
     on such LIBOR Interest Determination Date will be the arithmetic mean of
     such quotations, If fewer than two quotations are provided, LIBOR
     determined on such LIBOR Interest Determination Date will be the arithmetic
     mean of the rates quoted at approximately 11:00 am (or such other time
     specified in the applicable Floating Interest Rate Notice), in the
     applicable principal financial center for the country of the Index Currency
     on such LIBOR Interest Determination Date, by three major banks in such
     principal financial center selected by the Calculation Agent for the loans
     in the Index Currency to leading European banks, having the Index Maturity
     designated in the applicable Floating Interest Rate Notice and in a
     principal amount that is representative for a single transaction in such
     Index Currency in such market at such time; provided, however, that if the
     banks so selected by the Calculation Agent are not quoting as mentioned in
     this sentence, LIBOR in effect for the applicable period will be the same
     as LIBOR for the immediately preceding Interest Reset Period (or, if there
     was no such Interest Reset Period, the rate of interest payable on the
     Notes for which such LIBOR is being determined shall be the Initial
     Interest Rate).

     PRIME RATE. If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "PRIME RATE," Prime Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to the Prime Rate (a "PRIME
RATE INTEREST DETERMINATION DATE"), the rate on such date as such rate is
published in H.15(519) under the heading "Bank Prime Loan." If such rate is not
published prior to 3:00 p.m., New York City time, on the related Calculation
Date, then the Prime Rate shall be the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Screen U.S. PRIME 1
Page (as defined below) as such bank's prime rate or base lending rate as in
effect for such Prime Rate Interest Determination Date. If fewer than four such
rates appear on the Reuters Screen U.S. PRIME 1 Page for such Prime Rate
Interest Determination Date, the Prime Rate shall be the arithmetic mean of the
prime rates quoted on the basis of the actual number of days in the year divided
by a 360-day year as of the close of business on such Prime Rate Interest
Determination Date by four major money center banks (which may include the
Calculation Agent) in the City of New York selected by the Calculation Agent,
after consultation with the Company. If fewer than four such quotations are so
provided, the Prime Rate shall be the arithmetic mean of four prime rates quoted
on the basis of the actual number of days in the year divided by a 360-day year
as of the close of business on such Prime Rate Interest Determination Date as
furnished in the City of New York by the major money center banks, if any, that
have provided such quotations and by as many substitute banks or trust companies
(which may include the Calculation Agent) as necessary in order to obtain four
such prime rate quotations, PROVIDED such substitute banks or trust companies
are organized and doing business under the laws of the United States, or any
State thereof, have total equity capital of at least U.S. $500 million and are
each subject to supervision or examination by Federal or State authority,
selected by the Calculation Agent, after consultation with the Company, to
provide such rate or rates; PROVIDED, HOWEVER, that if the banks or trust
companies so selected by the Calculation Agent are not quoting as mentioned in
this sentence, the Prime Rate determined as of such Prime Rate Interest
Determination Date shall be the Prime Rate in effect on such Prime Rate Interest
Determination Date.

     TREASURY RATE. If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "TREASURY RATE," Treasury Rate
shall mean, with respect to any Interest

                                       24
<PAGE>

Determination Date relating to a Note for which the interest rate is determined
with reference to the Treasury Rate (a "TREASURY RATE INTEREST DETERMINATION
DATE"), the following:

          (i) the rate from the auction held on the applicable Treasury Rate
     Interest Determination Date (the "AUCTION") of direct obligations of the
     United States ("TREASURY BILLS") having the Index Maturity specified in the
     applicable Floating Interest Rate Notice that rate appears under the
     caption "INVESTMENT RATE" on the display of Bridge Telerate, Inc., or any
     successor service, on page 56 or any other page as may replace page 56 on
     that service ("TELERATE PAGE 56") or page 57 or any other page as may
     replace page 57 on that service ("TELERATE PAGE 57"); or

          (ii) if the rate described above is not published by 3:00 p.m., New
     York City time, on the Calculation Date, the Bond Equivalent Yield of the
     rate for the applicable Treasury Bills as published in the H.15 Daily
     Update, or other recognized electronic source used for the purpose of
     displaying the applicable rate, under the captions "U.S. Government
     Securities/Treasury Bills/Auction High;" or

          (iii) if the rate described above is not published by 3:00 p.m., New
     York City time, on the related Calculation Date, the Bond Equivalent Yield
     of the Auction rate of the applicable Treasury Bills, announced by the
     United States Department of the Treasury; or

          (iv) in the event that the rate described above is not announced by
     the United States Department of the Treasury, or if the Auction is not
     held, the Bond Equivalent Yield of the rate on the applicable Interest
     Determination Date of Treasury Bills having the Index Maturity specified in
     the applicable Floating Interest Rate Notice published in H.15(519) under
     the caption "U.S. Government Securities/Treasury Bills/Secondary Market;"
     or

          (v) if the rate described above is not so published by 3:00 p.m., New
     York City time, on the related Calculation Date, the rate on the applicable
     Interest Determination Date of the applicable Treasury Bills as published
     in H.15 Daily Update, or other recognized electronic source used for the
     purpose of displaying the applicable rate, under the caption "U.S.
     Government Securities/Treasury Bills/Secondary Market;" or

          (vi) if the rate described above is not so published by 3:00 p.m., New
     York City time, on the related Calculation Date, the rate on the applicable
     Interest Determination Date calculated by the Calculation Agent as the Bond
     Equivalent Yield of the arithmetic mean of the secondary market bid rates,
     as of approximately 3:30 p.m., New York City time, on the applicable
     Interest Determination Date, of three primary United States government
     securities dealers, which may include the Calculation Agent or its
     affiliates, selected by the Calculation Agent, for the issue of Treasury
     Bills with a remaining maturity closest to the Index Maturity specified in
     the applicable Floating Interest Rate Notice; or

          (vii) if the dealers selected by the Calculation Agent are not quoting
     as described above, the Treasury Rate for the immediately preceding
     Interest Reset Period, or, if there was no Interest Reset Period, the rate
     of interest payable shall be the Initial Interest Rate.

                                       25
<PAGE>

     The "BOND EQUIVALENT YIELD" shall mean a yield calculated in accordance
with the following formula and expressed as a percentage:

     Bond Equivalent Yield =      D x N
                              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 interest period for which interest is
being calculated.

                                OTHER PROVISIONS

     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 to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected and of the Holders of 66 2/3%
in principal amount of the Securities at the time Outstanding of all series to
be affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such series,
to waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. To the extent
permitted by law, any such consent or waiver by the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Note.

     No reference herein to the Indenture and no provision of this Note 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 Note at the times, place and rate, and in the coin or currency,
herein prescribed.

     All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

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

                                       26
<PAGE>

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         UNIF GIFT MIN ACT--_____ CUSTODIAN_____
TEN ENT -- as tenants by the entireties                    (Cust)       (Minor)
JT TEN  -- as joint tenants with right  Under Uniform Gifts to Minors Act
           of survivorship and not as
           tenants in common             ___________________________
                                                    (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 TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

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

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

the within Security of TECO ENERGY, INC. and does hereby irrevocably constitute
and appoint _______________________________________________ attorney to transfer
said Security on the books of the Company, with full power of substitution in
the premises.

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

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

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

                                       27
<PAGE>

                                                                         ANNEX A

                7% REMARKETABLE OR REDEEMABLE SECURITIES DUE 2015

                          INITIAL INTEREST RATE PERIOD

CUSIP Number:                 872375 AB 6

Principal Amount:             $200,000,000

Original Issue Date:          September 25, 2000

Issue Price:                  99.804%

Stated Maturity:              October 1, 2015

Initial Interest Rate:        7% per annum

Interest Payment Dates:       October 1 and April 1, commencing October 1, 2000

Record Dates:                 Fifteenth calendar day immediately
                              preceding the related Interest Payment
                              Date whether or not a Business Day,
                              except that the Record Date for the
                              Interest Payment Date occurring on
                              October 1, 2000 shall be the date
                              upon which the Company delivered the
                              Notes.

Initial Callholder:           Salomon Smith Barney Inc., or its assignee or
                              successor

Initial ROARS
Remarketing Date:             October 1, 2002

ROARS Period:                 October 1, 2002 up to, but excluding,
                              October 1, 2012

Base Rate:                    5.86%

ROARS Coupon Reset Rate:      __________ %

Reference Corporate Dealers:  Chase Securities Inc.
                              Salomon Smith Barney Inc.
                              Morgan Stanley & Co. Incorporated
                              Merrill Lynch & Co., Inc.
                              Banc of America Securities LLC
                              Goldman Sachs & Co.

                              Five of the six dealers listed above will be
                              agreed upon by the Company and the Initial
                              Callholder

Reference Treasury Dealers:   Chase Securities Inc.
                              Salomon Smith Barney Inc.
                              Morgan Stanley & Co. Incorporated
                              Merrill Lynch & Co., Inc.
                              Banc of America Securities LLC
                              Goldman Sachs & Co.

                              Five of the six dealers listed above will be
                              agreed upon by the Company and the Initial
                              Callholder

                                  Annex A -- 1
<PAGE>

                       SUBSEQUENT INTEREST RATE PERIOD(S)

CUSIP Number:

Principal Amount:

Interest Rate Adjustment Date:

Record Date(s):

Interest Payment Date(s):

Interest Rate Mode:

      [  ]  Commercial Paper Term Mode

      [  ]  Long Term Rate Mode

      [  ]  ROARS Mode

              [  ]  Callholder:

              [  ]  ROARS Remarketing Date:

              [  ]  ROARS Rate Period:

              [  ]  Base Rate:

              [  ]  ROARS Coupon Reset Rate:

              [  ]  Reference Corporate Dealers:

              [  ]  Reference Treasury Dealers:

                                  Annex A -- 2
<PAGE>

Interest Rate:

      [  ]  Fixed Rate:

      [  ]  Floating Rate:

              Calculation Agent: _________________________________

              Initial Interest Rate to Initial Interest Reset Date:____________

      Interest Rate Basis(es):

      [  ]  CD Rate
            Index Maturity:

      [  ]  CMT Rate
            Index Maturity:

            Designated CMT Telerate Page:

      [  ]  Commercial Paper Rate
            Index Maturity:

      [  ]  Federal Funds Rate

      [  ]  LIBOR

            [ ] LIBOR Reuters
                     Index Currency:
                     Index Maturity:

            [ ] LIBOR Telerate
                     Index Currency:
                     Index Maturity:

      [  ]  Prime Rate

      [  ]  Treasury Rate
                 Index Maturity:

Spread (+/-):

Spread Multiplier:

Floating Rate Maximum Interest Rate:

Floating Rate Minimum Interest Rate:

Initial Interest Reset Date:

Interest Reset Date:

Interest Reset Period(s):

Day Count Convention:

      [  ]  Actual/360
      [  ]  Actual/Actual
      [  ]  30/360

Applicable Interest Rate Basis:

                                  Annex A -- 3
<PAGE>

Optional Redemption Provisions (Long Term Rate Mode):

     APPLICABLE REDEMPTION PERIOD                        REDEMPTION PRICE

         Other or Alternative Terms of Optional Repayment:

Early Remarketing Provisions (Long Term Rate Mode):

         Initial Early Remarketing Date:_____________

         Initial Early Remarketing Premium:__________

         Annual Early Remarketing Premium Percentage Reduction:_________

         Other or Alternative Terms of Early Remarketing:

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

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

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

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

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

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

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

Other Provisions:

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

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

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

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

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

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

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

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

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

                                  Annex A -- 4<PAGE>

                                                                   EXHIBIT 10(a)

         SUBCONTRACT AGREEMENT BETWEEN SUPERCONDUCTIVE COMPONENTS, INC.
                                       AND
                  THE OHIO STATE UNIVERSITY RESEARCH FOUNDATION

The following describes the terms and conditions under which The Ohio State
University Research Foundation whose address is 1960 Kenny Road, Columbus, Ohio
43210-1063; hereinafter referred to as "SUBCONTRACTOR", acting on behalf of the
College of Engineering, agrees to conduct studies as described below under
subcontract to Superconductive Components, Inc., whose address is 1145
Chesapeake Ave., Columbus, Ohio 43212, hereinafter referred to as COMPANY.

1.       WORKSCOPE
         SUBCONTRACTOR agrees to conduct research and development services. The
         scope of work described in the SUBCONTACTOR's proposal 66443-55-00 and
         attached hereto as Attachment A, shall be completed. The work will be
         conducted to partly satisfy COMPANY's, Small Business Technology
         Transfer contract with the National Science Foundation, entitled "NOx
         Sensor for Internal Combustion Engines", Dr. Prabir Dutta will act as
         the SUBCONTRACTOR's Principal Investigator and direct the technical
         activity of the subcontracted work.

2.       PERIOD OF PERFORMANCE
         This agreement is effective on April 1, 2000 and end March 31, 2001
         unless extended.

3.       PRICE
         SUBCONTRACTOR agrees to perform the workscope on a Firm-Fixed Price
         basis, in the amount of $20,000. Any additional charges for services
         not provided for in the workscope must be approved in writing in
         advance.

4.       REPORTING
         SUBCONTRACTOR will provide a technical progress report on or about
         November 15, 2000 and a final technical report on or before April 30,
         2001.

6.       BILLING AND PAYMENT
         COMPANY will pay according to the following payment schedule:

                  April 2000        $4,000           June 2000         $4,000
                  May 2000          $4,000           July 2000         $4,000
                  August 2000       $4,000

         SUBCONTRACTOR will provide invoices in accordance with the above
         payment schedule Payments will be made by COMPANY within thirty (30)
         days of invoices, SUBCONTRACTOR hereby acknowledges receipt of $12,000,
         representing the first three (3) payments under this Agreement.

6.       STANDARD OF PERFORMANCE
         SUBCONTRACTOR will perform the workscope in accordance with generally
         accepted professional practices. HOWEVER, AND BECAUSE OF THE NATURE OF
         SUCH EFFORT, SUBCONTRACTOR MAKES NO WARRANTY OR GUARANTEE WHATSOEVER IN
         CONNECTION WITH THE FURNISHING OF THE SERVICES OR THE USE OR
         IMPLEMENTATION OS SUCH SERVICES BY PURCHASER.

7.       MATERIALS, APPLIANCES, EMPLOYEES
         Unless otherwise stipulated, the SUBCONTRACTOR shall provide and pay
         for all materials, labor, tools, equipment, transportation and other
         facilities necessary for the execution and completion of the work.

<PAGE>

8.       TERMINATION
         Performance under this agreement may be terminated by either party upon
         thirty (30) days written notice. Upon termination, SUBCONTRACTOR will
         be reimbursed for all costs and non-cancelable commitments incurred in
         the performance of the work, but not to exceed the fixed price
         specified in PRICE. Non-cancelable commitments include scheduled
         stipends to graduate students.

9.       RIGHT TO PUBLISH
         SUBCONTRACTOR reserves the right to publish the results of this
         investigation. Before publishing, however, SUBCONTRACTOR shall notify
         COMPANY of its intention to publish, and shall submit the manuscript to
         COMPANY for review and comment. COMPANY shall have thirty (30) days
         from receipt of the manuscript to present any comments, which shall be
         in writing, to SUBCONTRACTOR. COMPANY'S comments shall be given due
         consideration by SUBCONTRACTOR. Furthermore, SUBCONTRACTOR agrees to
         not publish COMPANY'S Proprietary or Confidential Information without
         the prior written consent of COMPANY. The publication of the results
         may be delayed for a period not to exceed six (6) months if it contains
         a disclosure of an invention(s) on which either party desires to file a
         United States or foreign patent. It is understood that in no case can
         this provision for delay of publication pending patent filing cause a
         delay in the normal academic progress of a SUBCONTRACTOR graduate
         student with respect to preparation and submission of a graduate thesis
         or dissertation. SUBCONTRACTOR agrees to not incorporate COMPANY'S
         Confidential or Proprietary Information in any thesis or dissertation.

10.      CONFIDENTIAL INFORMATION
         A.       During the course of performing the workscope described,
                  SUBCONTRACTOR may be exposed to Proprietary Information of
                  COMPANY. The Proprietary Information may include, for example,
                  documents, data, know-how, formulae, processes, designs,
                  customer lists, specifications, samples, reports, findings,
                  inventions or ideas, but not limited to these forms.
                  Regardless of the form in which the Proprietary Information
                  was disclosed to SUBCONTRACTOR, such Information must be
                  identified in writing as being proprietary and confidential
                  information of the COMPANY.

         B.       SUBCONTRACTOR shall not use Proprietary Information disclosed
                  by COMPANY under this subcontract for any purpose except for
                  the purpose of performing the workscope described.

         C.       SUBCONTRACTOR agrees to maintain COMPANY'S Proprietary
                  Information in confidence, and not to disclose it to any Third
                  parties except COMPANY further agrees that the obligation of
                  confidence undertaken above does not prevent the disclosing of
                  any information pursuant to the subpoena power of any court of
                  any civil investigation demand issued by a governmental agency
                  or as otherwise may be required by law.

         D.       Nothing contained herein shall deprive the SUBCONTRACTOR of
                  the right to disclose or use any information that is:

                  (i)      generally known or which becomes generally known as
                           evidenced by printed publications through no fault of
                           the SUBCONTRACTOR; or

                  (ii)     which is possessed by SUBCONTRACTOR as evidenced by
                           dated, written records kept in the ordinary course of
                           business, before receipt from COMPANY; or

                  (iii)    which is disclosed to SUBCONTRACTOR by a third party
                           who has an independent right to such information.

         E.       The obligation of confidentiality undertaken by the
                  SUBCONTRACTOR shall survive any termination of this Agreement.

                                  -2-
<PAGE>

11.      INTELLECTUAL PROPERTY
         Intellectual Property shall be governed by the Cooperative Agreement
         dated December 11, 1998 and attached hereto, as Attachment B.

12.      ASSIGNMENT
         Neither party to the Contract shall assign or sublet it as a whole
         without the written consent of the other, nor shall the SUBCONTRACTOR
         assign any money due or to become due to him hereunder, without the
         previous written consent of COMPANY.

13.      APPLICABLE LAW
         This agreement shall be governed and construed in accordance with the
         laws of the State of Ohio.

14.      EQUAL OPPORTUNITY
         During the performance of the Contract and to the extent that Executive
         Order Number 11246 may be applicable to this contract, SUBCONTRACTOR
         agrees as follows:

         A.       SUBCONTRACTOR will not discriminate against any employee or
                  applicant for employment because of race, color, religion,
                  sex, national origin, ancestry, physical handicap, mental
                  condition, marital status, age, or veteran status.
                  SUBCONTRACTOR agrees to post in conspicuous places, available
                  to employees and applicants for employment, any notices
                  provided to the SUBCONTRACTOR, which set forth the provisions
                  of this nondiscrimination clause.

         B.       SUBCONTRACTOR will, in all solicitations or advertisements for
                  employees placed by or on behalf of SUBCONTRACTOR, state that
                  all qualified applicants will receive consideration for
                  employment without regard to race, color, religion, sex,
                  national origin, ancestry, physical handicap, mental
                  condition, marital status, age, or veteran status.

15.      CERTIFICATION OF NONSEGREGATED FACILITIES
         A.       "Segregated facilities", as used in this provision, means any
                  waiting rooms, work areas, rest rooms and washrooms,
                  restaurants and other eating areas, time clocks, locker rooms
                  and other storage or dressing areas, parking lots, drinking
                  fountains, recreation or entertainment areas, transportation,
                  and housing facilities provided for employees, that are
                  segregated by explicit directive or are in fact segregated on
                  the basis of race, color, religion, or national origin because
                  of habit, local custom, or otherwise.

         B.       SUBCONTRACTOR certifies that it does not and will not maintain
                  or provide for its employee any segregated facilities at any
                  of its establishments, and that it does not and will not
                  permit its employees to perform their services at any location
                  under its control where segregated facilities are maintained.
                  SUBCONTRACTOR agrees that a breach of this certification is a
                  violation of the Equal Opportunity clause in this contract.

16.      CLEAN AIR AND WATER CERTIFICATION
         SUBCONTRACTOR certifies that any facility to be used in performance of
         this contract is not X listed on the Environmental Protection Agency
         List of Violating Facilities.

         SUBCONTRACTOR agrees to notify COMPANY immediately, in writing, of the
         receipt of any communication from the Administrator, or a designee, of
         the Environmental Protection Agency, indicating that any facility
         intended or being used in performance of this contract is under
         consideration to be listed on the EPA List of Violating Facilities.

17.      SURVIVABILITY
         The provisions of Sections 9, 10 and 11 shall survive any termination
         or expiration of this Agreement

                                  -3-
<PAGE>

Agreed to and Accepted:

The Ohio State University                   COMPANY
Research Foundation                         Superconductive Components, Inc.

By                                          By:
  -------------------------------------       ----------------------------------
Signed:                                     Signed:
       --------------------------------            -----------------------------
Title:                                      Title:
      ---------------------------------           ------------------------------
Date:                                       Date:
    -----------------------------------          -------------------------------

                                  -4-
<PAGE>

                                                                    ATTACHMENT A

                                STATEMENT OF WORK

                TITLE: NOx SENSOR FOR INTERNAL COMBUSTION ENGINES

1)       Synthesis and the characterization of the auxiliary phases

         Responsibilities:

         CISM:
         -        Formulation of the compound
         -        Microstructural studies

         SCI:
         -        Synthesis of the powder
         -        Characterization of the powder

         ACTIVITIES

         1.       Formulation of the compound
         2.       Synthesis of the powder
         3.       Calcination of the powder
         4.       Phase analysis by XRD
         5.       Stoichiometry  verification by ICP
         6.       Particle size analysis
         7.       Microstructural studies

2)       Preparation and characterization of the zeolite

         Responsibilities:

         CISM:
         -        Formulation of the compound
         -        Preparation of the powder
         -        Microstructural studies
         -        Characterization of the powder

         ACTIVITIES

         1.       Preparation of ion-exchange solutions
         2.       Prepare HY and CUY, various loading levels
         3.       Phase analysis by XRD
         4.       Stoichiometry  verification by ICP
         5.       Particle size analysis
         6.       Microstructural studies

3)       Fabrication of the sensor

         Responsibilities:

         CISM:
         -        Fabrication of the sensor

         SCI:
         -        Packaging of the sensor

                                  -5-
<PAGE>

         ACTIVITIES

         1.       Design the prototype
         2.       Preparation of zeolite materials
         3.       Deposition of electrodes, zeolite, and metal oxide
         4.       Packaging of the sensor

                                  -6-
<PAGE>

                                                                    ATTACHMENT B

                              COOPERATIVE AGREEMENT

SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) PROGRAM ALLOCATION OF RIGHTS IN
INTELLECTUAL PROPERTY AND RIGHTS TO CARRY OUT FOLLOW-ON RESEARCH, DEVELOPMENT,
OR COMMERCIALIZATION.

 This Agreement between Superconductive Components, Inc., a small business
concern organized as an Ohio Corporation under the laws of the State of Ohio and
having a principal place of business at 1145 Chesapeake Ave., Columbus, OH
43212, ("SBC") and The Ohio State University Research Foundation, a research
institution having a principal place of business at 1960 Kenny Road, Columbus,
OH 43210, ("RI") is entered into for the purpose of allocating between the
parties certain rights relating to an STTR project to be carried out by SBC and
RI (hereinafter referred to as the "PARTIES") under an STTR funding agreement
that may be awarded by the National Science Foundation (NSF) to SBC to fund a
proposal entitled "NOx Sensor for Internal Combustion Engines," submitted, or to
be submitted, to NSF by SBC on or about December 14, 1998.

1.       Applicability of this Agreement.

         (a)      This Agreement shall be applicable only to matters relating to
                  the STTR project referred to in the preamble above.

         (b)      If a funding, agreement for an STTR project is awarded to an
                  SBC based upon the STIR proposal referred to in the preamble
                  above, SBC will promptly provide a copy of such funding
                  agreement to RI, and SBC will make a subaward to RI in
                  accordance with the funding agreement, the proposal, and this
                  Agreement. If the terms of such funding agreement appear to be
                  inconsistent with the provisions of this Agreement, the
                  Parties will attempt in good faith to resolve any such
                  inconsistencies. However, if such resolution is not achieved
                  within a reasonable period, SBC shall not be obligated to
                  award nor RI to accept the subaward. If a subaward is made by
                  SBC and accepted by RI, this Agreement shall not be applicable
                  to contradict the terms of such subaward or of the funding
                  agreement awarded by NSF to SBC except on the grounds of
                  fraud, misrepresentation, or mistake, but shall be considered
                  to resolve ambiguities in the terms of the subaward.

         (c)      The provisions of this Agreement shall apply to any and all
                  consultants, subcontractors, independent contractors, or other
                  individuals employed by SBC or RI for the purposes of this
                  STTR project.

2.       Background Intellectual Property.

         (a)      "Background Intellectual Property" means property and the
                  legal right therein of either or both parties developed before
                  or independent of this Agreement including inventions, patent
                  applications) patents, copyrights, trademarks, mask works,
                  trade secrets and any information embodying proprietary dam
                  such as technical data and computer software.

         (b)      This Agreement shall not be construed as implying that either
                  party hereto shall have the right to use Background
                  Intellectual Property of the other in connection with this
                  STTR project except as otherwise provided hereunder.

                  (1)      The following Background Intellectual Property Of SBC
                           may be used nonexclusively and, except as noted,
                           without compensation by RI in connection with
                           research or development activities for this STTR
                           project (if "none" so state):

                           NONE:

                                  -7-
<PAGE>

                  (2)      The following Background Intellectual Property of RI
                           may be used nonexclusively and, except as noted,
                           without compensation by SBC in connection with
                           research or development activities for this STTR
                           project (if "none" so state):

                           NONE:

                  (3)      The following Background Intellectual Property of RI
                           may be used by SBC nonexclusively in connection with
                           commercialization of the results of this STTR
                           project, to the extent that such use is reasonably
                           necessary for practical, efficient and competitive
                           commercialization of such results but not for
                           commercialization independent of the
                           commercialization of such results upon the condition
                           that SBC pay to RI, in addition to any other royalty
                           including any royalty specified in the following
                           list, a royalty of 2% of net sales or leases made by
                           or under the authority of SBC of any product or
                           service that embodies, or the manufacture or normal
                           use of which entails the use of, all or any part of
                           such Background Intellectual Property (if "none" so
                           state):

                           BACKGROUND INTELLECTUAL PROPERTY WILL CONSIST OF THE
                           OHIO STATE UNIVERSITY RESEARCH FOUNDATION INVENTION
                           DISCLOSURE 97ID66F ENTITLED POTENTIOMETRIC TYPE NOx
                           WITH ZEOLITE COATED ELECTRODES.

3.       Project Intellectual Property.

         (a)      "Project Intellectual Property" means the legal rights
                  relating to inventions (including Subject Inventions as
                  defined in 37 CFR Section 401), patent applications, patents,
                  copyrights, trademarks, mask works, trade secrets and any
                  other legally protectable information, including computer
                  software, first made or generated during the performance of
                  this STTR Agreement.

         (b)      Except as otherwise provided herein, ownership of Project
                  Intellectual Property shall vest in the party whose personnel
                  conceived the subject matter or first actually reduced the
                  subject matter to practice, and such party may perfect legal
                  protection therein in its own name and at its own expense.
                  Jointly made or generated Project Intellectual Property shall
                  be jointly owned by the Parties unless otherwise agreed in
                  writing. The SBC shall have the first option to perfect the
                  rights in jointly made or generated Project Intellectual
                  Property unless otherwise agreed in writing.

                  (1)      Profits, resulting from any product, process, or
                           other innovation or invention based on the
                           cooperative agreement shall be negotiated in good
                           faith at the conclusion of the project.

                  (2)      Expenses and other liabilities associated with the
                           development and marketing of any product, process, or
                           other innovation or invention shall be allocated as
                           follows: the SBC will be responsible for one hundred
                           percent (100%) and the RI will be responsible for
                           zero (0) percent.

         (c)      The Parties agree to disclose to each other, in writing, each
                  and every Subject Invention which may be patentable or
                  otherwise protectable under the United States patent laws in
                  Title 35, United States Code. The Parties acknowledge that
                  they will disclose Subject Inventions to each other and the
                  awarding agency within one (1) month after their respective
                  inventor(s) first disclose the invention in writing to the
                  person(s) responsible for patent matters of the H disclosing
                  Party. All written disclosures of such inventions shall
                  contain sufficient detail of the invention, identification of
                  any statutory bars, and shall be marked confidential, in
                  accordance with 35 U.S.C. Section 205.

         (d)      Each party hereto may use Project Intellectual Property of the
                  other nonexclusively and without compensation in connection
                  with research or development activities for this STTR project,
                  including inclusion in STTR project reports to the NSF and
                  proposals to the NSF for continued funding of this STTR
                  project through additional phases.

                                  -8-
<PAGE>

         (e)      In addition to the Government's rights under the Patent Rights
                  clause of 37 CFR Section 401.14, the Parties agree that the
                  Government shall have an irrevocable, royalty free,
                  nonexclusive license for any governmental purpose in any
                  Project Intellectual Property.

         (f)      SBC will have an option to commercialize the Project
                  Intellectual Property of RI, subject to any rights of the
                  Government therein, as follows --

                  1)       Where Project Intellectual Property of RI is a
                           potentially patentable invention, SBC will have an
                           exclusive option for a license to such invention, for
                           an initial option period of six (6) months after such
                           invention has been reported to SBC. SBC may, at its
                           election and subject to the patent expense
                           reimbursement provisions of this section, extend such
                           option for an additional three (3) months by giving
                           written notice of such election to RI prior to the
                           expiration of the initial option period. During the
                           period of such option following notice by SBC of
                           election to extend, RI will pursue and maintain any
                           patent protection for the invention requested in
                           writing by SBC and, except with the written consent
                           of SBC or upon the failure of SBC to reimburse
                           patenting expenses as required under this section,
                           will not voluntarily discontinue the pursuit and
                           maintenance of, any United States patent protection
                           for the invention initiated by RI or of any patent
                           protection requested by SBC. For any invention for
                           which SBC gives notice of its election to extend the
                           option, SBC will, within thirty (30) days after
                           invoice, reimburse RI for the expenses incurred by RI
                           prior to expiration or termination of the option
                           period in pursuing and maintaining (i) any United
                           States patent protection initiated by RI and (ii) any
                           patent protection requested by SBC. SBC may terminate
                           such option at will by giving written notice to RI in
                           which case further accrual of reimbursable patenting
                           expenses hereunder, other than prior commitments not
                           practically revocable, will cease upon RI's receipt
                           of such notice. At any time prior to the expiration
                           or termination of an option, SBC may exercise such
                           option by giving written notice to RI, whereupon the
                           parties will promptly and in good faith enter into
                           negotiations for a license under RI's patent rights
                           in the invention for SBC to make, use and/or sell
                           products and/or services that embody, or the
                           development, manufacture and/or use of which involves
                           employment of the invention. The terms of such
                           license will include: (i) payment of reasonable
                           royalties to RI on sales of products or services
                           which embody, or the development, manufacture or use
                           of which involves employment of the invention, (ii)
                           reimbursement by SBC of expenses incurred by RI in
                           seeking and maintaining patent protection for the
                           invention in countries covered by the license (which
                           reimbursement, as well as any such patent expenses
                           incurred directly by SBC with RI's authorization,
                           insofar as deriving from RI's interest in such
                           invention, may be offset in full against up to fifty
                           percent (50%) of accrued royalties in excess of any
                           minimum royalties due RI); and, in the case of an
                           exclusive license, (iii) reasonable commercialization
                           milestones and/or minimum royalties.

                  (2)      Where Project Intellectual Property of RI is other
                           than a potentially patentable invention, SBC will
                           have an exclusive option for a license, for an option
                           period extending until L months following completion
                           of RI's performance of that phase of this STTR
                           project in which such Project Intellectual Property
                           of R1 was developed by RI SBC may exercise such
                           option by giving written notice to RI, whereupon the
                           parties will promptly and in good faith enter into
                           negotiations for a license under RI's interest in the
                           subject matter for SBC to make, use and/or sell
                           products or, services which embody, or the
                           development, manufacture and/or use of which involve
                           employment of, such Project Intellectual Property of
                           RI. The terms of such license will include: (i)
                           payment of reasonable royalties to RI on sales of
                           products or services that embody, or the development,
                           manufacture or use of which involves employment of,
                           the Project Intellectual Property of RI and, in the
                           case of an exclusive license, (ii) reasonable
                           commercialization milestones and/or minimum
                           royalties.

                                  -9-
<PAGE>

                  (3)      Where more than one royalty might otherwise be due in
                           respect of any unit of product or service under a
                           license pursuant to this Agreement, the parties shall
                           in good faith negotiate to ameliorate any effect
                           thereof that would threaten the commercial viability
                           of tile affected products or services by providing in
                           such license(s) for a reasonable discount or cap on
                           total royalties due in respect of any such unit.

4.       Follow-on Research or Development.

         All follow-on work, including any licenses, contracts, subcontracts,
         sublicenses or arrangements of any type, shall contain appropriate
         provisions to implement the Project Intellectual Property rights
         provisions of this agreement and insure that the Parties and the
         Government obtain and retain such rights granted herein in all future
         resulting research, development, or commercialization work.

5. Confidentiality/Publication.

         (a)      Background Intellectual Property and Project Intellectual
                  Property of a party, as well as other property or confidential
                  information of a party, disclosed by that party to the other
                  in connection with this STTR project shall be received and
                  held in confidence by the receiving party and, except with the
                  consent of the disclosing party or as permitted under this
                  Agreement, neither used by the receiving party nor disclosed
                  by the receiving party to others, provided that the receiving
                  party has notice that such information is regarded by the
                  disclosing party as proprietary or confidential. However,
                  these confidentiality obligations shall not apply to use or
                  disclosure by the receiving party after such information is or
                  becomes known to the public without breach of this provision
                  or is or becomes known to the receiving party from a source
                  reasonably believed to be independent of the disclosing party
                  or is developed by or for the receiving party independently of
                  its disclosure by the disclosing party.

         (b)      Subject to the terms of paragraph (a) above, either party may
                  publish its results from this STTR project, However, the
                  publishing party will negotiate the right of review with the
                  other party with respect to a proposed publication, as well as
                  a 30 day period in which to review proposed publications and
                  submit comments, which will be given full consideration before
                  publication. Furthermore, upon request of the reviewing parry,
                  publication will be deferred for up to 150 additional days for
                  preparation and filing of a patent application which the
                  reviewing party has the right to file or to have filed at its
                  request by the publishing party.

6.       Liability.

         (a)      Each party disclaims all warranties running to the other or
                  through the other to third parties, whether express or
                  implied, including without limitation warranties of
                  merchantability, fitness for a particular purpose, and freedom
                  from infringement, as to any information, result, design,
                  prototype, product or process deriving directly or indirectly
                  and in whole or pan from such party in connection with this
                  STTR project.

         (b)      SBC will indemnify and hold harmless RI with regard to any
                  claims arising in connection with commercialization of the
                  results of this STTR project by or under the authority of SBC.
                  To extent permitted under Ohio law, the PARTIES will indemnify
                  and hold harmless the Government with regard to any claims
                  arising in connection with commercialization of the results of
                  this STTR project.

7.       Termination.

         (a)      This agreement ma be terminated by either Party upon thirty
                  (30) days written notice to the other Party. This agreement
                  may also be terminated by either Party in the event of the
                  failure of the other Party to comply with the terms of this
                  agreement.

                                  -10-
<PAGE>

         (b)      In the event of termination by either Parry, each Party shall
                  be responsible for its share of the costs incurred through the
                  effective date of termination, as well as its share of the
                  costs incurred after the effective date of termination, and
                  which are related to the termination. The confidentiality,
                  use, and/or non-disclosure obligations of this agreement shall
                  survive any termination of this agreement.

8.       Governing Law.

         (a)      This agreement shall be governed by the state of Ohio and
                  shall also be subject to applicable U.S. federal laws and
                  regulations which derive from the prime National Science
                  Foundation grant to SBC.

AGREED TO AND ACCEPTED

Small Business Concern

By:                                             Date:
   -----------------------------------               --------------------------

Print Name:
           ---------------------------

Title:
      --------------------------------

Research Institution

By:                                             Date:
   -----------------------------------               --------------------------

Print Name:
           ---------------------------

Title:
      --------------------------------

                                  -11-

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