Document:

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                                LICENSE AGREEMENT

                                     between

                             SMITHKLINE BEECHAM PLC

                                       and

                        PACIFIC HEALTH LABORATORIES INC.

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              [Portions of this Exhibit have been omitted pursuant
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                    to a Request for Confidential Treatment]
                    ---------------------------------------

THE SYMBOL "[*]" IS USED TO INDICATE WHERE A PORTION OF THIS EXHIBIT HAS BEEN
OMITTED. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. A COMPLETE COPY OF THIS EXHIBIT, CONTAINING ALL OF THE OMITTED
PORTIONS, HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
TOGETHER WITH THE REQUEST FOR CONFIDENTIAL TREATMENT.

                                LICENSE AGREEMENT
                                -----------------

THIS LICENSE AGREEMENT (hereinafter "AGREEMENT"), made as of the ___ day of June
2001 between SMITHKLINE BEECHAM PLC (doing business as GlaxoSmithKline), a
corporation incorporated in England and Wales, having a principal place of
business at New Horizons Court, Brentford Middlesex, England and PACIFIC HEALTH
LABORATORIES INC., a corporation of the State of Delaware, having a principal
place of business at 1480 Route 9 North, Suite 204, Woodbridge, New Jersey
07095.

                                WITNESSETH THAT:
                                ----------------

         WHEREAS, PACIFIC, as defined below, is the owner of all right, title
and interest in certain patents, identified in Appendix A hereto, and know-how
relating to certain products in the field of appetite suppression, meal
replacement, weight loss and/or weight management under development and/or
marketed by PACIFIC under the brand name "Satietrol(R)"; and
         WHEREAS, GSK, as defined below, desires to obtain certain licenses from
PACIFIC to develop and commercialize such products under the aforesaid patents
and know-how, and PACIFIC is willing to grant to GSK such licenses;

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         NOW, THEREFORE, in consideration of the covenants and obligations
expressed herein, and intending to be legally bound, and otherwise to be bound
by proper and reasonable conduct, the parties agree as follows:

1.       DEFINITIONS
         -----------
         1.01  "AFFILIATES" shall mean any corporation, firm, partnership or
other entity, whether de jure or de facto, which directly or indirectly owns, is
owned by or is under common ownership with a party to this AGREEMENT to the
extent of at least fifty percent (50%) of the equity (or such lesser percentage
which is the maximum allowed to be owned by a foreign corporation in a
particular jurisdiction) having the power to vote on or direct the affairs of
the entity and any person, firm, partnership, corporation or other entity
actually controlled by, controlling or under common control with such party.
         1.02  "EFFECTIVE DATE" shall mean the date upon which this AGREEMENT is
effective and shall be the date of this AGREEMENT first written above.
         1.03. "FIELD" shall mean all human uses of LICENSED PRODUCT.
         1.04  "GSK" shall mean SmithKline Beecham plc and its AFFILIATES.
         1.05  "KNOW-HOW" shall mean all present and future technical
information and know-how in the FIELD which is owned or controlled by PACIFIC
and relates to LICENSED PRODUCT and shall include, without limitation, all
formulation, biological, chemical, pharmacological, toxicological, clinical,
assay, control and manufacturing data and any other information relating to
LICENSED PRODUCT and useful for the development and commercialization of
LICENSED PRODUCT.
         1.06  "NET SALES" shall mean the gross receipts representing sales of
LICENSED PRODUCT in the TERRITORY under this AGREEMENT by GSK and its
sublicensees ("the Selling Party") to THIRD PARTIES in finished product form
(i.e., packaged and labeled for sale to the ultimate consumer) less deductions
for:
          (i)  transportation charges to the extent they are included in the
               selling price or otherwise paid by the THIRD PARTY purchaser,
               including insurance, for transporting LICENSED PRODUCT;

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             (ii) sales and excise taxes and duties and any other governmental
                  charges imposed upon the production, importation, use or sale
                  of such LICENSED PRODUCT;
            (iii) trade, quantity and cash discounts and/or trade rebates (in
                  each case, excluding advertising and promotional
                  considerations included in the selling price ) allowed on
                  LICENSED PRODUCT;
             (iv) allowances or credits to customers on account of rejection or
                  return of LICENSED PRODUCT or on account of retroactive price
                  reductions affecting such LICENSED PRODUCT.
      Sales between GSK and its sublicensees shall be excluded from the
computation of NET SALES and no royalties will be payable on such sales.
         1.07 "LICENSED PRODUCT" shall mean all products concerning or relating
to appetite suppression, meal replacement products used in weight management,
weight loss and/or weight management under development by PACIFIC as of the
Effective Date and/or marketed by PACIFIC under the brand name "Satietrol(R)" as
of the EFFECTIVE DATE, the manufacture, use, sale or import of which, but for
the license granted under this AGREEMENT, infringes any PATENT or employs any
KNOW HOW; together with all improvements, line extensions and enhancements to
such products created by or on behalf of PACIFIC during the term of the License
Agreement.
         1.08 "PACIFIC" shall mean Pacific Health Laboratories Inc. and its
AFFILIATES.
         1.09 "PATENTS" shall mean all patents and patent applications in the
FIELD which are or become owned or controlled by PACIFIC, or to which PACIFIC
otherwise has, now or in the future, the right to grant licenses, which
generically or specifically claim LICENSED PRODUCT, a process for manufacturing
or formulating LICENSED PRODUCT, an intermediate used in such process or a use
of LICENSED PRODUCT. Included within the definition of PATENTS are all
continuations, continuations-in-part, divisions, patents of addition, reissues,
renewals or extensions thereof and all SPCs. Also included within the definition
of PATENTS are any patents or patent applications which generically or
specifically claim any improvements on LICENSED PRODUCT or intermediates or
manufacturing processes required or useful for production of LICENSED PRODUCT

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which are developed by PACIFIC, or which PACIFIC otherwise has the right to
grant licenses, now or in the future, during the term of this AGREEMENT. The
current list of patent applications and patents encompassed within PATENTS is
set forth in Appendix A attached hereto.
         1.10 "PER PRODUCT BASIS" shall mean each distinct form or presentation
or use of LICENSED PRODUCT, for example, and without limitation to the
foregoing, a meal replacement product is a distinct form of LICENSED PRODUCT to
a pre-meal beverage, and the addition of vitamins to an existing formulation
will not constitute a distinct form or presentation of LICENSED PRODUCT. In
determining whether a particular LICENSED PRODUCT is a distinct form or
presentation, no account will be taken of minor changes, such as flavor,
packaging or enhancements to an existing form or presentation of LICENSED
PRODUCT. In the event that two existing forms and/or presentations of LICENSED
PRODUCT are packaged in combination and sold together to THIRD PARTIES, the NET
SALES pertaining to such a combination will be apportioned between each
individual form or presentation of such LICENSED PRODUCTS in accordance with the
relative selling price of each such LICENSED PRODUCT when sold individually by
GSK and/or its sublicensees.
       1.11 "SPC" shall mean a right based upon a PATENT to exclude others from
making, using or selling LICENSED PRODUCT, such as a Supplementary Protection
Certificate
       1.12 "TERRITORY" shall mean worldwide.
       1.13 "THIRD PARTY(IES)" shall mean any party other than GSK, PACIFIC and
their respective AFFILIATES.
       1.14 "USA" shall mean the United States of America, including all of its
territories and possessions.

2.       GRANT AND RIGHT OF FIRST REFUSAL
         --------------------------------
         2.01 PACIFIC hereby grants to GSK an exclusive license, with the right
to grant sublicenses under PATENTS and KNOW-HOW to make, have made, use, sell,
offer for sale, and import LICENSED PRODUCT, in the FIELD, in the TERRITORY,
subject to the other terms and conditions of this AGREEMENT. The rights to make,

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have made, use and sell shall include all activities concerning the subject
matter of PATENTS and KNOW-HOW which activities would, but for the license
herein granted, infringe PATENTS and KNOW-HOW.
         2.02 In the event that GSK in its absolute discretion elects not to
develop and/or market LICENSED PRODUCTS in any particular country and notifies
PACIFIC of this intention, then GSK's exclusive license shall terminate in
respect of LICENSED PRODUCTS in such country only and such exclusive rights
shall vest in PACIFIC. PACIFIC shall not seek customers or establish any branch
outside of any country in which PACIFIC regains such exclusive rights from GSK
("PACIFIC COUNTRY") in connection with LICENSED PRODUCT or maintain any
distribution depot for the LICENSED PRODUCT outside of a PACIFIC COUNTRY.
PACIFIC warrants and undertakes that it will impose this same obligation upon
its licensees and distributors of LICENSED PRODUCT within a PACIFIC COUNTRY. In
the event that a) GSK fails to submit, within [*] from "Launch by GSK of
LICENSED PRODUCT in USA", a written description of GSK's intent to launch
LICENSED PRODUCT in respect of any particular country, or b) LICENSED PRODUCT is
not launched within [*] after "Launch by GSK of LICENSED PRODUCT in USA" by GSK
in countries for which a description of GSK's intent to launch LICENSED PRODUCT
was submitted under Section 2.02 (a), then such a country shall be deemed to be
a PACIFIC COUNTRY.
        2.03 PACIFIC hereby grants to GSK the right of first refusal to obtain
an exclusive license in the TERRITORY to make, have made, use, sell, offer for
sale, and import product, with the right to grant sublicenses, in respect of all
new product development concerning or relating to appetite suppression, meal
replacement for weight management, weight loss and/or weight management not
covered by PATENTS or KNOW-HOW and in respect of which PACIFIC intends to use a
THIRD PARTY to further develop and/or commercialize such new product, upon terms
to be mutually negotiated by the parties in good faith. PACIFIC shall grant GSK
an Exclusive Period of ninety (90) days following notification of each such new
product development to negotiate and agree the terms of an exclusive license. In
the event that PACIFIC and GSK fail to agree on mutually acceptable terms for
the exclusive license during such period, then PACIFIC shall be free to
negotiate and enter into a license with a THIRD PARTY, provided that in no event

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will PACIFIC offer a license to such THIRD PARTY on terms more favorable than
the terms that were acceptable to GSK but unacceptable to PACIFIC. The term
`Exclusive Period' shall mean that PACIFIC will not, nor will it permit its
directors, AFFILIATES, representatives or agents to do, directly or indirectly,
any of the following:
negotiate, undertake, authorize, recommend, propose or enter into any
transaction involving such new product development ("Competing Transaction"); or
    a) facilitate, encourage, solicit or initiate or in any way engage in any
       discussion, negotiation or submission of a proposal or offer in respect
       of a Competing Transaction; or
    b) furnish or cause to be furnished to any THIRD PARTY any information
       concerning the new product development in connection with a Competing
       Transaction; or
    c) otherwise cooperate in any way with or assist or participate in,
       facilitate or encourage, any effort or attempt by any THIRD PARTY to do
       or seek any of the foregoing.
This Section 2.03 shall not apply in the event that PACIFIC is subject to a
Change of Control. For the purpose of this Section 2.03, "Change of Control"
will take place if control of more than fifty percent (50%) of the ownership of
PACIFIC is obtained by any THIRD PARTY that does not have direct or indirect
control or ownership of PACIFIC as at the EFFECTIVE DATE.

3.       PAYMENTS, EQUITY AND ROYALTIES
         ------------------------------
         3.01 In consideration for the license under PATENTS and KNOW-HOW
granted to GSK in this AGREEMENT, GSK shall make the following payments to
PACIFIC, up to an aggregate maximum of [*], in the specified incremental
amounts, within thirty (30) days after the occurrence of the following
milestones:
(a) EFFECTIVE DATE                                              $ 1,000,000
(b) [*]
(c) [*]
(d) [*]

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provided that:

(1)  each such payment shall be made only one time regardless of how many times
     such milestones are achieved and regardless of how many LICENSED PRODUCTS
     achieve such milestones, and no payment shall be owed for a milestone which
     is not reached;
(2)  notwithstanding the above, each of the milestones pertaining to "EFFECTIVE
     DATE" [*] will be paid by GSK to PACIFIC within 10 working days after each
     such milestone is achieved;
(3)  all milestones shall become due and payable, to the extent not already paid
     by GSK to PACIFIC in the event of [*].
(4)  each such payment shall be non-refundable and non-creditable to GSK;
(5)  the determination of whether or not a particular milestone has been
     achieved shall be made in good faith by GSK in its sole and absolute
     discretion;
(6)  by the term [*];
(7)  In the event that GSK elects in its sole and absolute discretion to
     terminate this AGREEMENT prior to [*], then GSK will provide to PACIFIC
     (free of charge) all results derived from GSK's further evaluation of
     LICENSED PRODUCTS, as set out in Section 3.01 (6), to the extent only that
     such results are specific to LICENSED PRODUCT, and PACIFIC shall have a
     non-exclusive right to use such results (without the right to disclose,
     sub-license or assign the use of such results to a THIRD PARTY) but only to
     the extent such use is related to the LICENSED PRODUCT from which such
     results were derived.
(8)  By the term [*].
(9)  By the term [*].
(10) By the term [*].
(11) By the term [*].
(12) [*].

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         3.02 Contemporaneously with the execution of this AGREEMENT, the
parties hereto shall execute or procure the execution of a Stock Purchase
Agreement.
         3.03 As further consideration for the license under PATENTS and KNOW
HOW granted to GSK under this AGREEMENT and subject to the provisions of this
Section 3, GSK shall pay a Patent Royalty to PACIFIC for NET SALES of LICENSED
PRODUCT in respect of which there is a granted, unchallenged, and valid PATENT
which claims LICENSED PRODUCT at the time such NET SALES occur. Patent Royalties
will be payable by GSK to PACIFIC on a PER PRODUCT BASIS in respect of LICENSED
PRODUCTS sold by GSK in the USA and Canada. GSK's Patent Royalty obligations
under this Section 3.03 shall become effective in each country of the TERRITORY
at such time as a valid and unchallenged PATENT is granted in such country
claiming the LICENSED PRODUCT sold by GSK. GSK shall not dispute the validity of
a PATENT for purposes of this Section 3.03 unless GSK or PACIFIC has received
notification from a THIRD PARTY challenging the validity of the PATENT. GSK's
Patent Royalty obligations under Paragraph 3.03 shall expire on a country by
country basis upon the expiration of the last remaining enforceable PATENT
claiming the LICENSED PRODUCT sold in such country. Patent Royalties shall be
reduced by fifty percent (50%) in those countries in which there is no issued
patent claiming the LICENSED PRODUCT sold in such country ("Know How Royalty").
In the event that the Know How Royalty becomes payable by GSK to PACIFIC in any
particular country, the obligation to make payments under such Know How Royalty
shall terminate and GSK will have no further obligation to make such payments
after ten (10) years from First Commercial Sale of first LICENSED PRODUCT in
such country. As soon as reasonably practicable and, in any event, before the
first launch of LICENSED PRODUCTS into a country other than USA and Canada, GSK
and PACIFIC shall determine an appropriate Patent Royalty rate for the country
concerned. Such a Patent Royalty rate shall not exceed the Patent Royalty rates
agreed for USA and Canada, as set out below:

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         A) COMPUTATION OF PERIOD OF NET SALES USED TO DETERMINE PATENT ROYALTY
RATE IN USA AND CANADA
The royalty rates to be applied to NET SALES in a particular country in any
calendar quarter shall be determined by reference to the NET SALES in such
country during that calendar quarter together with the NET SALES in such country
of the preceding three (3) calendar quarters. Notwithstanding the above, the NET
SALES in a particular country to be used in determining the royalty rate in
respect of the first four calendar quarters from First Commercial Sale within
such country shall be the aggregate total NET SALES to the end of the calendar
quarter in respect of which a royalty payment is to be calculated.
         B)  DETERMINATION OF ROYALTY RATE IN USA AND CANADA
The royalty rate will be determined by reference to the period of NET SALES set
out in Section 3.03 (A) above. The royalty rate will be applied to NET SALES
achieved in a particular country in the most recent completed calendar quarter,
as follows:
                  i) [*], and
                  ii) [*], and
                  iii) [*].
         C)  COMPUTATION OF ROYALTY PAYMENT IN USA AND CANADA
It is agreed that, subject to the provisions of this Section 3, the royalties to
be paid by GSK to PACIFIC will be calculated as follows:
                  i)  [*].
                  ii) [*]:
                  x)  [*];
                  y)  [*].; and
                  z)  [*].
         3.04 An appropriate adjustment of the Patent Royalties and Know How
Royalties for NET SALES of LICENSED PRODUCT formulated in combination with one
or more additional therapeutically active ingredients shall be mutually agreed
upon, when appropriate, in good faith, by the parties.
         3.05 In the event that a THIRD PARTY initiates any legal or
administrative proceeding challenging the validity, scope or enforceability of a
PATENT claiming LICENSED PRODUCT sold on the date of such a challenge in any
particular country of the TERRITORY, then the Patent Royalty obligation under
Paragraph 3.03 in such country shall be amended during such challenge period

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such that only fifty percent (50%) of the Patent Royalty otherwise due and
payable in such country will continue to be paid by GSK to PACIFIC in accordance
with the terms of this AGREEMENT and fifty percent (50%) of the Patent Royalty
otherwise due and payable in such country shall be retained by GSK during the
pendency of the proceeding. If the validity and enforceability of (i) any
individual PATENT claiming the LICENSED PRODUCT sold in such particular country
is upheld by a court or other legal or administrative tribunal from which no
appeal is or can be taken, then GSK shall pay the retained Patent Royalty plus
all interest accruing to such retained Patent Royalty to PACIFIC, or (ii) all
the PATENT(S) claiming the LICENSED PRODUCT sold in a particular country are not
upheld by such court or other legal or administrative tribunal, then the
retained Patent Royalty shall be for GSK's account, GSK shall retain the license
granted herein in such country and the royalty to be paid by GSK to PACIFIC
shall be limited to the Know How Royalty for the period set out in Section 3.03.
         3.06 Subject to the provisions of Section 7.02 (ii), any and all
filing, maintenance and prosecution costs ("Maintenance Costs") incurred by GSK
which are related to PATENTS shall be fully creditable against any future
payments owed to PACIFIC by GSK under this AGREEMENT.
         3.07 In no circumstances will the deduction of Third Party Payments (as
defined in Section 4.02) and Maintenance Costs reduce royalty payments owed by
GSK to PACIFIC in respect of any one calendar quarter by more than fifty percent
(50%) of the royalty due and payable prior to such deduction ("Royalty
Threshold"). Uncredited Third Party Payments and Maintenance Costs will be
applied and credited to all future payments owed by GSK to PACIFIC until they
are fully credited.
         3.08 Patent Royalties will be reduced by fifty percent (50%) in the
event that LICENSED PRODUCT faces "Substantial Competition". [*].

4.       COMPULSORY LICENSES AND THIRD PARTY LICENSES
         --------------------------------------------
         4.01 In the event that a governmental agency in any country grants or
compels PACIFIC to grant a license to any THIRD PARTY for LICENSED PRODUCT, GSK
shall have the benefit in such country or territory of the terms granted to such
THIRD PARTY to the extent that such terms are more favorable than those of this
AGREEMENT.

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         4.02 If, during the term of this AGREEMENT, GSK, in its sole
discretion, deems it necessary to seek or exercise or execute a license from any
THIRD PARTY in order to avoid infringement of intellectual property owned or
controlled by such THIRD PARTY as a result of the exercise by GSK and/or its
sublicensees of the license herein granted, fifty percent (50%) of any royalties
or other fees paid to such THIRD PARTY ("Third Party Payments") under such
license shall be deducted from royalties otherwise due to PACIFIC under this
AGREEMENT. Uncredited Third Party Payments will be applied and credited to all
future payments owed by GSK to PACIFIC until they are fully credited. GSK shall
notify and consult with PACIFIC prior to entering into any such license with a
THIRD PARTY.

     5.  DEVELOPMENT AND SUPPLY OF PRODUCT
         ---------------------------------
         5.01 As of the EFFECTIVE DATE, and during the term of the AGREEMENT,
GSK shall, subject to the terms of Section 8.02, have full control,
responsibility and authority over research, development and commercialization of
LICENSED PRODUCT in the TERRITORY. GSK will exercise its reasonable efforts and
diligence in developing and commercializing LICENSED PRODUCT in accordance with
its business, legal, medical and scientific judgment. In the event that GSK
decides not to launch each and every form or presentation of LICENSED PRODUCT in
any particular country, such a decision in and of itself shall not be construed
as or deemed a failure on the part of GSK to exercise its reasonable efforts and
diligence in developing and commercializing LICENSED PRODUCT in such country.
         5.02 GSK shall keep PACIFIC informed on a semi-annual basis of the
progress of GSK's efforts to develop and commercialize LICENSED PRODUCT in the
TERRITORY.
         5.03 PACIFIC shall provide to GSK, at GSK's request, reasonable
technical assistance within its area of expertise concerning development,
production and commercialization of LICENSED PRODUCT. Provision of such
technical assistance shall include, but not be limited to, visits by PACIFIC
personnel to GSK, at PACIFIC's expense, and visits by GSK personnel to PACIFIC,

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at GSK's expense, at times and for periods of time upon which the parties will
agree, and the supply of any KNOW-HOW that GSK may require.
         5.04 [*].
         5.05 GSK will be responsible for the manufacture and supply of LICENSED
PRODUCT. PACIFIC will assist GSK in arranging for due diligence to be carried
out on the manufacturing and packaging of LICENSED PRODUCT at its current
site(s).

 6.      EXCHANGE OF INFORMATION AND CONFIDENTIALITY
         -------------------------------------------
         6.01 Promptly after the EFFECTIVE DATE, PACIFIC shall disclose and
supply to GSK all KNOW-HOW within PACIFIC's possession which was not already
supplied to GSK prior to the EFFECTIVE DATE. Thereafter, PACIFIC shall promptly
disclose and supply to GSK any further KNOW-HOW that may become known to
PACIFIC.
         6.02 During the term of this AGREEMENT and for five (5) years
thereafter, irrespective of any termination earlier than the expiration of the
term of this AGREEMENT, PACIFIC and GSK shall not use or reveal or disclose to
THIRD PARTIES any confidential information received from the other party or
otherwise developed by either party in the performance of activities in
furtherance of this AGREEMENT without first obtaining the written consent of the
disclosing party, except as may be otherwise provided herein, or as may be
required for purposes of investigating, developing, manufacturing or marketing
LICENSED PRODUCT or for securing essential or desirable authorizations,
privileges or rights from governmental agencies, or is required to be disclosed
to a governmental agency or is necessary to file or prosecute patent
applications concerning LICENSED PRODUCT or to carry out any litigation
concerning LICENSED PRODUCT. This confidentiality obligation shall not apply to
such information which is or becomes a matter of public knowledge, or is already
in the possession of the receiving party, or is disclosed to the receiving party
by a THIRD PARTY having the right to do so, or is subsequently and independently
developed by employees of the receiving party or AFFILIATES thereof who had no
knowledge of the confidential information disclosed, or is required by law to be

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disclosed. The parties shall take reasonable measures to assure that no
unauthorized use or disclosure is made by others to whom access to such
information is granted.
         6.03 Nothing herein shall be construed as preventing GSK from
disclosing any information received from PACIFIC hereunder to a sublicensee or
distributor of GSK, provided, in the case of a sublicensee or distributor, such
sublicensee or distributor has undertaken a similar obligation of
confidentiality with respect to the confidential information. Nothing herein
shall be construed as preventing PACIFIC from disclosing any information
received from GSK hereunder to a banker, investor or distributor of PACIFIC,
provided, in the case of a banker, investor or distributor, such banker,
investor or distributor has undertaken a similar obligation of confidentiality
with respect to the confidential information. PACIFIC shall not be permitted to
disclose any information received from GSK hereunder to a sublicensee of PACIFIC
or other THIRD PARTY with regard to LICENSED PRODUCT. In the event that GSK
terminates this AGREEMENT in its entirety prior to [*], then PACIFIC will be
entitled to use and disclose the results of such study to a THIRD PARTY provided
that GSK shall, at GSK's sole election, be entitled to redact any reference to
GSK from the details of the study prior to such disclosure.
         6.04 All confidential information disclosed by one party to the other
shall remain the intellectual property of the disclosing party. In the event
that a court or other legal or administrative tribunal, directly or through an
appointed master, trustee or receiver, assumes partial or complete control over
the assets of a party to this AGREEMENT based on the insolvency or bankruptcy of
such party, the bankrupt or insolvent party shall promptly notify the court or
other tribunal (i) that confidential information received from the other party
under this AGREEMENT remains the property of the other party and (ii) of the
confidentiality obligations under this AGREEMENT. In addition, the bankrupt or
insolvent party shall, to the extent permitted by law, take all steps necessary
or desirable to maintain the confidentiality of the other party's confidential
information and to ensure that the court, other tribunal or appointee maintains
such information in confidence in accordance with the terms of this AGREEMENT.
         6.05 No public announcement or other disclosure to THIRD PARTIES
concerning the existence of or terms of this AGREEMENT shall be made, either

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directly or indirectly, by any party to this AGREEMENT without first obtaining
the approval of the other party and agreement upon the nature and text of such
announcement or disclosure. The party desiring to make any such public
announcement or other disclosure shall inform the other party of the proposed
announcement or disclosure at least five (5) business days prior to public
release, and shall provide the other party with a written copy thereof, in order
to allow such other party to comment upon such announcement or disclosure. Each
party agrees that it shall cooperate fully with the other with respect to all
disclosures regarding this AGREEMENT to the Securities Exchange Commission and
any other governmental or regulatory agencies, including requests for
confidential treatment of proprietary information of either party included in
any such disclosure.
         6.06 PACIFIC shall not submit for written or oral publication any
manuscript, abstract or the like which includes data or other information
relating to LICENSED PRODUCT or other information generated and provided by GSK
without first obtaining the prior written consent of GSK. GSK's contribution
shall be noted in all publications or presentations by acknowledgment or
coauthorship, whichever is appropriate.
         6.07 Nothing in this AGREEMENT shall be construed as preventing or in
any way inhibiting either party from complying with statutory and regulatory
requirements governing the development, manufacture, use and sale or other
distribution of LICENSED PRODUCT in any manner which it reasonably deems
appropriate, including, for example, by disclosing to regulatory authorities
confidential or other information received from the other party or THIRD
PARTIES.
         6.08 The reporting of adverse events related to LICENSED PRODUCT to
regulatory authorities in the TERRITORY shall be performed in accordance with
the Pharmacovigilance Agreement attached to this AGREEMENT as Appendix B.

7.       PATENT PROSECUTION AND LITIGATION
         ---------------------------------
         7.01 Each party shall have and retain sole and exclusive title to all
inventions, discoveries and know-how which are made, conceived, reduced to
practice or generated by its employees, agents, or other persons acting under
its authority in the course of or as a result of this AGREEMENT. Each party

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shall own a fifty percent (50%) undivided interest in all such inventions,
discoveries and know-how made, conceived, reduced to practice or generated
jointly by employees, agents, or other persons acting under the authority of
both parties in the course of or as a result of this AGREEMENT. Except as
expressly provided in this AGREEMENT, each joint owner may make, use, sell,
keep, license, assign, or mortgage such jointly owned inventions, discoveries
and know-how, and otherwise undertake all activities a sole owner might
undertake with respect to such inventions, discoveries and know-how, without the
consent of and without accounting to the other joint owner.
         7.02 Each party shall promptly notify the other upon the making,
conceiving or reducing to practice of any invention or discovery under Section
7.01 concerning LICENSED PRODUCT. With respect to any such invention,
                  (i)    GSK shall have the first right, using in-house or
                         outside legal counsel selected at GSK's sole
                         discretion, to prepare, file, prosecute, maintain and
                         extend patent applications and patents concerning all
                         such inventions and discoveries related to LICENSED
                         PRODUCT in the TERRITORY owned in whole by GSK or
                         jointly by GSK and PACIFIC with appropriate credit to
                         PACIFIC's representatives, including the naming of such
                         parties as inventors where appropriate and in
                         accordance with the relevant legal requirements. GSK
                         may solicit PACIFIC's advice and review of the nature
                         and text of such patent applications and important
                         prosecution matters related thereto in reasonably
                         sufficient time prior to filing thereof, and GSK shall
                         take into account PACIFIC's reasonable comments related
                         thereto.
                  (ii)   PACIFIC shall, using in-house or outside legal counsel
                         approved by each of GSK and PACIFIC, prepare, file,
                         prosecute, maintain and extend patent applications and
                         patents concerning all such inventions and discoveries
                         related to LICENSED PRODUCT, including PATENTS owned in
                         whole or controlled by PACIFIC, for which PACIFIC shall
                         bear the costs. PACIFIC shall solicit GSK's advice and
                         review of the nature and text of such patent
                         applications and important prosecution matters related
                         thereto in reasonably sufficient time prior to filing

                                                                         Page 16
<PAGE>

                         thereof, and PACIFIC shall take into account GSK's
                         reasonable comments related thereto.

                 (iii)   If GSK, prior or subsequent to filing certain patent
                         applications on any inventions or discoveries which are
                         owned jointly by PACIFIC and GSK, elects not to file,
                         prosecute or maintain such patent applications or
                         ensuing patents or certain claims encompassed by such
                         patent applications or ensuing patents in any country
                         of the TERRITORY, GSK shall give PACIFIC notice thereof
                         within a reasonable period prior to allowing such
                         patent applications or patents or such certain claims
                         encompassed by such patent applications or patents to
                         lapse or become abandoned or unenforceable, and PACIFIC
                         shall thereafter have the right, at its sole expense,
                         to prepare, file, prosecute and maintain patent
                         applications and patents or divisional applications
                         related to such certain claims encompassed by such
                         patent applications or patents concerning all such
                         inventions and discoveries in countries of its choice
                         throughout the world.
                  (iv)   The party filing patent applications for jointly owned
                         inventions and discoveries shall do so in the name of
                         and on behalf of both GSK and PACIFIC. Each of PACIFIC
                         and GSK shall hold all information it presently knows
                         or acquires under this Paragraph which is related to
                         all such patents and patent applications as
                         confidential subject to the provisions of Section 6.
         7.03 PACIFIC warrants and represents that it has disclosed to GSK the
complete texts of all patent applications filed by PACIFIC as of the EFFECTIVE
DATE which relate to LICENSED PRODUCT in the TERRITORY as well as all
information received as of the EFFECTIVE DATE concerning the institution or
possible institution of any interference, opposition, re-examination, reissue,
revocation, nullification or any official proceeding involving a PATENT anywhere
in the TERRITORY. PACIFIC further warrants and represents that it will disclose
to GSK the complete texts of all patent applications filed by PACIFIC after the

                                                                         Page 17
<PAGE>

EFFECTIVE DATE which relate to LICENSED PRODUCT in the TERRITORY as well as all
information received after the EFFECTIVE DATE concerning the institution or
possible institution of any interference, opposition, re-examination, reissue,
revocation, nullification or any official proceeding involving a PATENT anywhere
in the TERRITORY. In addition to GSK's rights under Section 7.02, GSK shall have
the right to review all such pending applications and other proceedings and make
recommendations to PACIFIC concerning them and their conduct. PACIFIC agrees to
keep GSK promptly and fully informed of the course of patent prosecution or
other proceedings including by providing GSK with copies of substantive
communications, search reports and third party observations submitted to or
received from patent offices throughout the TERRITORY. GSK shall provide such
patent consultation to PACIFIC at no cost to PACIFIC. GSK shall hold all
information disclosed to it under this section as confidential subject to the
provisions of Section 6.
         7.04 GSK shall have the right, but not the obligation, to assume
responsibility for any PATENT or any part of a PATENT, which PACIFIC intends to
abandon or otherwise cause or allow to be forfeited. PACIFIC shall give GSK
reasonable written notice prior to abandonment or other forfeiture of any PATENT
or any part of a PATENT so as to permit GSK to exercise its rights under this
Section 7.04.
         7.05 In the event of the institution of any suit by a THIRD PARTY
against PACIFIC, GSK or its sublicensees or distributors for patent infringement
involving the manufacture, use, sale, distribution or marketing of LICENSED
PRODUCT anywhere in the TERRITORY, the party sued shall promptly notify the
other party in writing. GSK shall have the right, but not the obligation, to
defend such suit at its own expense and shall notify PACIFIC as to whether or
not GSK intends to defend such a suit within ten (10) working days of GSK
becoming aware of the institution of the suit. PACIFIC and GSK shall provide
reasonable assistance to one another and reasonably cooperate in any such
litigation at the other's request without expense to the requesting party.
         7.06 In the event that PACIFIC or GSK becomes aware of actual or
threatened infringement of a PATENT anywhere in the TERRITORY, that party shall
promptly notify the other party in writing. GSK shall have the first right, but
not the obligation, to bring, at its own expense, an infringement action against
any THIRD PARTY and to use PACIFIC's name in connection therewith and to name
PACIFIC as a party thereto. If GSK does not commence a particular infringement

                                                                         Page 18
<PAGE>

action within ninety (90) days of receipt of the notice of infringement, then
PACIFIC, after notifying GSK in writing, shall be entitled to bring such
infringement action at its own expense. The party conducting such action shall
have full control over its conduct, including settlement thereof subject to
Section 7.08. In any event, PACIFIC and GSK shall provide reasonable assistance
to one another and shall reasonably cooperate in any such litigation at the
other's request without expense to the requesting party.
         7.07 PACIFIC and GSK shall recover their respective actual
out-of-pocket expenses, or equitable proportions thereof, associated with any
litigation or settlement thereof from any recovery made by any party. Any excess
amount shall be shared by the parties and distributed proportionately between
GSK and PACIFIC (calculated on the basis of the parties' respective financial
interest in the sales of LICENSED PRODUCT), provided that PACIFIC's share of the
excess amount shall be presumed to be equal to the royalties which would
otherwise be due to PACIFIC in the event that such excess amount were to be
treated as NET SALES of LICENSED PRODUCT by GSK or its sublicensees under this
AGREEMENT.
         7.08 The parties shall keep one another informed of the status of and
of their respective activities regarding any litigation or settlement thereof
concerning LICENSED PRODUCT, provided however that no settlement or consent
judgment or other voluntary final disposition of any suit defended or action
brought by a party pursuant to this Section 7 may be entered into without the
consent of the other party if such settlement would require the other party to
be subject to an injunction or to make a monetary payment or would otherwise
adversely affect the other party's rights under this AGREEMENT.
         7.09 GSK shall have the right but not the obligation to seek extensions
of the terms of PATENTS. At GSK's request, PACIFIC shall either authorize GSK to
act as PACIFIC's agent for the purpose of making any application for any
extensions of the term of PATENTS and provide reasonable assistance therefor to
GSK or shall diligently seek to obtain such extensions, in either event, at
PACIFIC's expense.
         7.10 At GSK's request, PACIFIC shall seek to obtain SPCs based on
PATENTS or authorize GSK to obtain SPCs based on PATENTS on PACIFIC's behalf.

                                                                         Page 19
<PAGE>

Where GSK holds a relevant marketing authorization issued by a competent
regulatory authority, GSK shall, at its sole discretion, provide to PACIFIC a
copy of said marketing authorization and any information necessary for the
purpose of obtaining an SPC based on a PATENT.
         7.11 At GSK's request, PACIFIC shall cooperate with GSK to obtain
"pipeline" protection for PATENTS which may be available under the patent laws
of countries in the TERRITORY in which the patent laws thereof are amended to
provide improved protection for LICENSED PRODUCT.
         7.12 Notwithstanding Sections 7.09 and 7.10, PACIFIC shall have the
right, but not the obligation, to seek extensions of the terms of PATENTS and to
seek to obtain SPCs based on PATENTS at its own expense.

8.       TRADEMARKS AND TRANSITIONAL PERIOD
         ----------------------------------
         8.01 GSK shall be solely responsible for the selection of all
trademarks, which it employs in connection with LICENSED PRODUCT in the
TERRITORY. PACIFIC shall assign to GSK the worldwide rights, title and interest
in and to the registered and unregistered "SATIETROL" trademarks, together with
any associated trademark applications (the "Marks") and associated internet
domain names owned by PACIFIC (as set out in Appendix C). GSK shall thereafter
assume all costs and responsibilities for registering, maintaining, and
defending the Marks and domain names in the TERRITORY. Such assignment shall be
free of charge to GSK in each country in which the Marks are assigned to GSK
until the expiration of GSK's Patent Royalty and Know How Royalty obligation in
such country, after which GSK shall pay to PACIFIC a royalty of [*] on the
annual NET SALES of product, in the USA only, to which the Marks are affixed by
GSK. Such a trademark royalty shall be payable for a maximum period of five (5)
years per product. For the avoidance of doubt, product shall not include
different variants, enhancements or improvements to an existing presentation of
such product. GSK shall be entitled to affix the Marks to any product and will
not be under any obligation to commercialize LICENSED PRODUCT using the Marks.
In the event that GSK terminates this AGREEMENT in its entirety prior to Launch
by GSK of LICENSED PRODUCT in USA, then GSK shall promptly assign back to

                                                                         Page 20
<PAGE>

PACIFIC the worldwide rights, title and interest in and to the Marks, together
with any associated trademark applications and internet domain names assigned to
GSK by PACIFIC under this Section 8.01.
         8.02 PACIFIC shall cooperate with and assist GSK (at GSK's expense) in
recording such trademark assignments at the appropriate trademarks offices and
in effecting a prompt transfer to GSK of such domain names as are associated
with the Marks with the relevant THIRD PARTY internet service provider.
         8.03 For the period of time only prior to First Commercial Sale of
LICENSED PRODUCT by GSK ("Transitional Period"), GSK hereby grants PACIFIC an
exclusive, royalty-free license, under the PATENTS and KNOW HOW, to
commercialize the pre-meal variant of LICENSED PRODUCT ("PMV"). PACIFIC shall
only commercialize PMV in the USA and such other countries (as set out in
Appendix D) in which PACIFIC commercializes PMV as at the EFFECTIVE DATE.
Further and subject to PACIFIC's strict compliance with the terms of Section
8.04, PACIFIC shall be entitled to so commercialize PMV under the Marks. PACIFIC
undertakes and warrants that, during the Transitional Period, PACIFIC will only
commercialize PMV within the Health Food Channel. For the purposes of this
Section 8, "Health Food Channel" shall mean health food stores and web sites
specific to health food only. " Health Food Channel" also includes health food
chains such as GNC, Whole Foods, Vitamin Shop, Vitamin World and the website
Drugstore.com, whether or not Drugstore.com would otherwise be considered within
the Health Food Channel. "Health Food Channel" does not include grocery stores,
food stores, convenience outlets, mass merchandisers, drug stores and any other
regional wholesaler or direct buying account or distributors and their
respective internet and mail order operations. Further, PACIFIC undertakes and
warrants that a) during the Transitional Period, PACIFIC will utilize no more
than the amount of time, resource and money dedicated to advertising and
promotion of PMV by PACIFIC per calendar quarter as at the EFFECTIVE DATE, and
b) PACIFIC will immediately cease all use of the Marks and will discontinue all
manufacturing, marketing, support, supply and sale of PMV to THIRD PARTIES prior
to First Commercial Sale of LICENSED PRODUCT by GSK.

                                                                         Page 21
<PAGE>

         8.04 GSK hereby grants to PACIFIC an exclusive license, for the
duration of the Transitional Period only, to use the Marks in connection with
PACIFIC's continued commercialization of PMV and MRP ( as defined in Section
8.05) in accordance with the terms set out in this Section 8. PACIFIC agrees
that GSK will have the right to control the nature of use of the Marks on PMV
and MRP to ensure that the Marks are used properly in accordance with GSK's
standards of quality control and trademark usage and that use of the Marks by
PACIFIC inures to the benefit of GSK. PACIFIC shall provide GSK with samples of
all literature, brochures, signs, advertising and packaging prepared by or on
behalf of PACIFIC in connection with the use of the Marks. When using the Marks
under this AGREEMENT, PACIFIC undertakes to comply substantially with all laws
pertaining to use of the goods enforced at any time in the covered territory.
PACIFIC agrees to cooperate in all matters involving infringement of any of the
Marks.
         8.05 GSK hereby grants to PACIFIC, for the term of this AGREEMENT, an
exclusive license, under the PATENTS and KNOW HOW, to commercialize within the
Health Food Channel only, and within the USA and Canada only, the meal
replacement variant (in powder form only) of LICENSED PRODUCT ("MRP"). Such an
exclusive license shall permit GSK to commercialize MRP in accordance with the
terms of this AGREEMENT except in the Health Food Channel. PACIFIC's rights
under this Section 8.05 are subject to PACIFIC's strict compliance with each of
the following terms and conditions:
         (1) PACIFIC shall not assign, delegate, sub-contract or further
sub-license any rights granted to PACIFIC under this Section 8.05 to any THIRD
PARTY; and
         (2) The sub-license granted by GSK to PACIFIC under this Section 8.05
is concerned with and pertains only to a powder presentation of MRP. PACIFIC
hereby undertakes that it will not develop MRP or cause MRP to be developed in
any form (for example, a ready to eat presentation of a meal replacement
product) other than a powder presentation; and
         (3) PACIFIC shall cease all use of the Marks and will discontinue all
manufacturing, marketing, support, supply and sale of MRP under the Marks to
THIRD PARTIES prior to First Commercial Sale of LICENSED PRODUCT by GSK; and

                                                                         Page 22
<PAGE>

         (4) PACIFIC undertakes and warrants that it will commercialize MRP only
within the Health Food Channel.
         (5) As further consideration for the sub-license to PACIFIC of certain
rights under PATENTS and KNOW HOW under this Section 8.05, PACIFIC shall pay a
royalty to GSK ("PACIFIC ROYALTY") in respect of NET SALES of MRP achieved by
PACIFIC in the USA and Canada during the period commencing [*] years after
Launch by GSK of LICENSED PRODUCT in USA. The PACIFIC ROYALTY shall be
calculated and paid on the same basis as that set out in Section 3.03 (A), (B)
and (C), and Section 9. This sublicense shall be terminated forthwith on GSK
serving notice of termination pursuant to Section 10.02 or Section 10.05.
Termination of PACIFIC's rights under this Section 8.05 shall be without
prejudice to the survival of the remaining terms and conditions of this
AGREEMENT.

9. STATEMENTS AND REMITTANCES
    -------------------------
         9.01 GSK shall keep and require its AFFILIATES and sublicensees to keep
complete and accurate records of all sales of LICENSED PRODUCT under the
licenses granted herein. PACIFIC shall have the right, at PACIFIC's expense,
through an independent certified public accountant or like person reasonably
acceptable to GSK, to examine such records during regular business hours during
the life of this AGREEMENT and for six (6) months after its termination;
provided, however, that such examination shall not take place more often than
once a year and shall not cover such records for more than the preceding two (2)
years and provided further that such accountant shall report to PACIFIC only as
to the accuracy of the royalty statements and payments.
          9.02 Within forty five (45) days after the end of each calendar
quarter, GSK shall provide a true accounting of all LICENSED PRODUCT sold by
GSK, its AFFILIATES and its sublicensees during such quarter. Such accounting
shall show sales on a country-by-country basis. Simultaneously with the
submission of the accounting, GSK shall pay to PACIFIC all the royalties due to
PACIFIC hereunder, and shall submit to PACIFIC, together with each such royalty
payment, a written royalty statement describing the calculation of royalties and
applicable exchange rates.
         9.03 All royalties due under this AGREEMENT shall be payable in US
dollars. With regard to sales made by a sublicensee of GSK only, in the event

                                                                         Page 23
<PAGE>

that governmental regulations prevent remittances from a foreign country, the
obligation of GSK to pay royalties on sales in that country shall be suspended
until such remittances are possible. PACIFIC shall have the right, upon giving
written notice to GSK, to receive payment in that country in local currency.
         9.04 Any tax, duty or other levy paid or required to be withheld by GSK
on account of royalties payable to PACIFIC under this AGREEMENT shall be
deducted from the amount of royalties otherwise due. GSK shall secure and send
to PACIFIC proof of any such taxes, duties or other levies withheld and paid by
GSK or its sublicensees for the benefit of PACIFIC.
         9.05 Monetary conversion from the currency of a foreign country, in
which LICENSED PRODUCT is sold, into U.S. Dollars shall be calculated at the
actual average rates of exchange for the pertinent calendar quarter as used by
GSK in producing its quarterly and annual accounts, as confirmed by GSK's
auditors.

10.      TERM AND TERMINATION
         --------------------
         10.01 Unless otherwise terminated, this AGREEMENT shall expire upon the
later of a) expiration, lapse or invalidation of the last remaining PATENT in
the TERRITORY which claims LICENSED PRODUCT, or b) expiration of GSK's
obligation (if any) to pay a Know How Royalty to PACIFIC in the TERRITORY.
Following expiration or termination of this AGREEMENT, other than due to
material breach of this AGREEMENT by GSK or GSK's termination of this AGREEMENT
described in Section 10.03 or Pacific's termination of this AGREEMENT under
Section 10.05, GSK shall be entitled to make, have made, use and sell LICENSED
PRODUCT and to use KNOW-HOW in the TERRITORY without any further payment
obligations to PACIFIC. For the avoidance of doubt, the expiration of this
AGREEMENT shall result in a fully paid up PATENT and KNOW HOW license for the
benefit of GSK. If this AGREEMENT is terminated by PACIFIC due to material
breach by GSK, or pursuant to Section 10.03 or 10.05, GSK shall have no further
rights or licenses with respect to the PATENTS or LICENSED PRODUCT (except as
described in Section 10.07 and 11.02).
         10.02 If either party materially fails or neglects to perform covenants
or provisions of this AGREEMENT and if such default is not corrected within

                                                                         Page 24
<PAGE>

sixty (60) days after receiving written notice from the other party with respect
to such default, and in the case of any payment obligation hereunder within ten
(10) working days after receiving written notice from the other party with
respect to such default, such other party shall have the right to terminate this
AGREEMENT by giving written notice to the party in default provided the notice
of termination is given within six (6) months of the default and prior to
correction of the default.
         10.03 In the event that GSK notifies PACIFIC under Section 3.01 (6) or
Section 3.01(8) that GSK does not intend to proceed with further development
and/or commercialization of LICENSED PRODUCTS, then this AGREEMENT shall
terminate forthwith.
         10.04 GSK may terminate this AGREEMENT on a country by country basis,
or in its entirety, by giving PACIFIC at least thirty (30) days written notice
thereof at any time based on a reasonable determination by GSK, using the same
standards GSK would use in assessing whether or not to continue development of a
product of its own making, that the patent, medical/scientific, technical,
regulatory or commercial profile (including, but without limitation, the failure
to achieve the milestones set out in Section 3.01) of LICENSED PRODUCT does not
justify continued development or commercialization of LICENSED PRODUCT.
Termination of this AGREEMENT in all countries of the TERRITORY shall constitute
a termination of this AGREEMENT in its entirety. For the avoidance of doubt, it
is agreed that a failure of any Quantitative Analysis carried out prior to
Launch of Licensed Product in the USA will be deemed a sufficient and reasonable
reason for GSK to exercise its right to terminate this AGREEMENT on grounds of
commercial profile. Quantitative Analysis will comprise a BASES II study and/or
(at GSK's sole election) a Test Market. Quantitative Analysis will be deemed
successful in the event that the results of such Quantitative Analysis are
successful in all material respects, including, but not limited to, a
demonstration that sales of LICENSED PRODUCT are likely to [*]. A "Test Market"
will comprise a form of controlled market testing of LICENSED PRODUCT, with no
restriction on packaging, branding, pricing or other strategic commercial
issues, which will in no circumstances be directed at more than fifteen percent
(15%) of the marketplace in the USA.

                                                                         Page 25
<PAGE>

         10.05 Either party may terminate this AGREEMENT if, at any time, the
other party shall file in any court or agency pursuant to any statute or
regulation of any state or country, a petition in bankruptcy or insolvency or
for reorganization or for an arrangement or for the appointment of a receiver or
trustee of the party or of its assets, or if the other party proposes a written
agreement of composition or extension of its debts, or if the other party shall
be served with an involuntary petition against it, filed in any insolvency
proceeding, and such petition shall not be dismissed with sixty (60) days after
the filing thereof, or if the other party shall propose or be a party to any
dissolution or liquidation, or if the other party shall make an assignment for
the benefit of creditors.
         10.06 Notwithstanding the bankruptcy of PACIFIC, or the impairment of
performance by PACIFIC of its obligations under this AGREEMENT as a result of
bankruptcy or insolvency of PACIFIC, GSK shall be entitled to retain the
licenses granted herein, subject to PACIFIC 's rights to terminate this
AGREEMENT for reasons other than bankruptcy or insolvency as expressly provided
in this AGREEMENT.
         10.07 All rights and distribution rights granted under or pursuant to
this AGREEMENT by PACIFIC to GSK are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to
"intellectual property" as defined under Section 101(52) of the U.S. Bankruptcy
Code. The parties agree that GSK, as a licensee of such rights under this
AGREEMENT, shall retain and may fully exercise all of its rights and elections
under the U.S. Bankruptcy Code, subject to performance by GSK of its preexisting
obligations under this AGREEMENT. The parties further agree that, in the event
of the commencement of a bankruptcy proceeding by or against PACIFIC under the
U.S. Bankruptcy Code, GSK shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all
embodiments of such intellectual property, and same, if not already in its
possession, shall be promptly delivered to GSK (a) upon any such commencement of
a bankruptcy proceeding upon written request therefor by GSK, unless PACIFIC
elects to continue to perform all of its obligations under this AGREEMENT, or
(b) if not delivered under (a) above, upon the rejection of this AGREEMENT by or
on behalf of PACIFIC upon written request therefor by GSK, provided, however,
that upon PACIFIC's (or its successor's) written notification to GSK that it is

                                                                         Page 26
<PAGE>

again willing and able to perform all of its obligations under this AGREEMENT,
GSK shall promptly return all such tangible materials to PACIFIC, but only to
the extent that GSK does not require continued access to such materials to
enable GSK to perform its obligations under this AGREEMENT.

11.      RIGHTS AND DUTIES UPON TERMINATION
         ----------------------------------
         11.01 Upon termination of this AGREEMENT, PACIFIC shall have the right
to retain any sums already paid by GSK hereunder.
         11.02 Upon termination of this AGREEMENT in its entirety or with
respect to LICENSED PRODUCT in any country, GSK shall notify PACIFIC of the
amount of LICENSED PRODUCT GSK and its sublicensees then have on hand, the sale
of which would, but for the termination, be subject to royalty, and GSK and its
sublicensees shall thereupon be permitted to sell that amount of LICENSED
PRODUCT for a period not exceeding twelve (12) months of such termination,
provided that GSK shall pay the royalty thereon at the time herein provided for.
This Section 11.02 shall not apply in the event of termination of this AGREEMENT
by GSK as a result of a material breach by PACIFIC.
         11.03 Termination of this AGREEMENT shall terminate all outstanding
obligations and liabilities between the parties arising from this AGREEMENT
except those described in Sections 6,7,8,9,10,11, and any other obligations
otherwise provided by this AGREEMENT which have accrued. In addition, any other
provision required to interpret and enforce the parties' rights and obligations
under this AGREEMENT shall also survive, but only to the extent required for the
full observation and performance of this AGREEMENT.
         11.04 Termination of the AGREEMENT in accordance with the provisions
hereof shall not limit remedies, which may be otherwise available in law or
equity.

12. WARRANTIES AND REPRESENTATIONS
    ------------------------------
         12.01 PACIFIC warrants and represents that it owns the entire right,
title and interest in the PATENTS listed in Appendix A, or filed by or on behalf
of PACIFIC pursuant to Section 7, and the KNOW-HOW provided to GSK under this

                                                                         Page 27
<PAGE>

AGREEMENT, and that it otherwise has the right to enter into this AGREEMENT.
PACIFIC further warrants and represents that it will not encumber any such
PATENTS and KNOW-HOW with liens, mortgages, security interests or otherwise.
PACIFIC further warrants and represents that there is nothing in any THIRD PARTY
agreement PACIFIC has entered into as of the EFFECTIVE DATE which, in any way,
will directly limit PACIFIC's ability to perform all of the obligations
undertaken by PACIFIC hereunder, and that it will not enter into any AGREEMENT
after the EFFECTIVE DATE under which PACIFIC would incur any such limitations.
         12.02 Nothing in this AGREEMENT shall be construed as a warranty that
PATENTS are valid or enforceable as of the EFFECTIVE DATE or that they will be
so during the term of this AGREEMENT. PACIFIC hereby warrants and represents
that it has no present knowledge from which it can be inferred that PATENTS are
invalid or that their exercise would infringe patent rights of THIRD PARTIES.
PACIFIC further warrants and represents that it has no present knowledge that
the process of manufacturing LICENSED PRODUCT, and all intermediates of such
process, will infringe patent rights of THIRD PARTIES in the TERRITORY.
         12.03 PACIFIC warrants and represents that it has not, up through and
including the EFFECTIVE DATE, omitted to furnish GSK with any information in its
possession concerning LICENSED PRODUCT or the transactions contemplated by this
AGREEMENT, which would be material to GSK's decision to enter into this
AGREEMENT and to undertake the commitments and obligations set forth herein.
         12.04 PACIFIC warrants and represents that it has no present knowledge
of the existence of any pre-clinical or clinical data or information concerning
the LICENSED PRODUCT which it has not provided to GSK prior to the EFFECTIVE
DATE which suggests that there may exist quality, toxicity, safety and/or
efficacy concerns which may materially impair the utility and/or safety of the
LICENSED PRODUCT.
         12.05 PACIFIC warrants and represents that it will not knowingly engage
in any activity regarding development of LICENSED PRODUCT outside of the FIELD
which is or ought to be recognized by PACIFIC as posing a present or potential
harm to the development of LICENSED PRODUCT in the FIELD in the TERRITORY.
PACIFIC further warrants that it will require all of its AFFILIATES and, in the

                                                                         Page 28
<PAGE>

event that this exclusive license becomes non-exclusive with regard to LICENSED
PRODUCT in any particular country pursuant to Section 2 of this AGREEMENT,
sublicensees of PRODUCT to enter in a binding agreement with PACIFIC which
contains the same warranty and representation as outlined in this Section 12.05.
         12.06 GSK shall defend, indemnify and hold harmless PACIFIC and its and
their respective officers, directors, employees, agents, successors and assigns
from any loss, damage, or liability, including reasonable attorney's fees,
resulting from any claim, complaint, suit, proceeding or cause of action against
any of them attributable to the manufacturing or marketing of LICENSED PRODUCT
by or on behalf of GSK (or its permitted sublicensees), or alleging physical or
other injury, including death, arising out of the administration, utilization
and/or ingestion of LICENSED PRODUCT manufactured, sold or otherwise provided to
the injured party by GSK (or its permitted sublicensees) provided:
                  (a)    GSK shall not be obligated under this Section 12.06 if
                         it is shown by evidence acceptable in a court of law
                         having jurisdiction over the subject matter and meeting
                         the appropriate degree of proof for such action, that
                         the injury was the result of the negligence or willful
                         misconduct of any employee or agent of PACIFIC or the
                         breach of any warranty or representation made by
                         PACIFIC in this AGREEMENT;
                  (b)    GSK shall have no obligation under this Section 12.06
                         unless PACIFIC (i) gives GSK prompt written notice of
                         any claim or lawsuit or other action for which it seeks
                         to be indemnified under this AGREEMENT, (ii) GSK is
                         granted full authority and control over the defense,
                         including settlement, against such claim or lawsuit or
                         other action, and (iii) PACIFIC cooperates fully with
                         GSK and its agents in defense of the claims or lawsuit
                         or other action; and
                  (e)    PACIFIC shall have the right to participate in the
                         defense of any such claim, complaint, suit, proceeding
                         or cause of action referred to in this Section 12.06
                         utilizing attorneys of its choice, at its own expense,
                         provided, however, that GSK shall have full authority

                                                                         Page 29
<PAGE>

                         and control to handle any such claim, complaint, suit,
                         proceeding or cause of action, including any settlement
                         or other disposition thereof, for which PACIFIC seeks
                         indemnification under this Section 12.06 provided that
                         GSK shall first obtain a general release and discharge
                         from all liability pertaining to the subject matter of
                         such settlement for the benefit of PACIFIC.
         12.07 PACIFIC shall defend, indemnify and hold harmless GSK and its and
their officers, directors, employees, agents, successors, sublicensees and
assigns from any loss, damage, or liability, including reasonable attorney's
fees, resulting from any claim, complaint, suit, proceeding or cause of action
against any of them attributable to the manufacturing or marketing of LICENSED
PRODUCT (including as a result of any permitted use of the Marks during the
Transitional Period set out in Section 8.03) by or on behalf of PACIFIC (or its
permitted sublicensees), or alleging physical or other injury, including death,
arising out of the administration, utilization and/or ingestion of LICENSED
PRODUCT manufactured, sold or otherwise provided to the injured party by
PACIFIC, including, in each case, where such loss, damage, or liability arises
as a result of PACIFIC exercising its rights to commercialize LICENSED PRODUCT
under Section 8 and, in the case of a PACIFIC COUNTRY, as a result of the
actions or omissions of PACIFIC's sublicensees, provided:
                  (a)    PACIFIC shall not be obligated under this Section 12.07
                         if it is shown by evidence acceptable in a court of law
                         having jurisdiction over the subject matter and meeting
                         the appropriate degree of proof for such action, that
                         the injury was the result of the negligence or willful
                         misconduct of any employee or agent of GSK or the
                         breach of any warranty or representation made by GSK in
                         this AGREEMENT;
                  (b)    PACIFIC shall have no obligation under this Section
                         12.07 unless GSK (i) gives PACIFIC prompt written
                         notice of any claim or lawsuit or other action for
                         which it seeks to be indemnified under this AGREEMENT,
                         (ii) PACIFIC is granted full authority and control over
                         the defense, including settlement, against such claim

                                                                         Page 30
<PAGE>

                         or lawsuit or other action, and (iii) GSK cooperates
                         fully with PACIFIC and its agents in defense of the
                         claims or lawsuit or other action; and
                  (c)    GSK shall have the right to participate in the defense
                         of any such claim, complaint, suit, proceeding or cause
                         of action referred to in this Section 12.07 utilizing
                         attorneys of its choice, at its own expense, provided,
                         however, that PACIFIC shall have full authority and
                         control to handle any such claim, complaint, suit,
                         proceeding or cause of action, including any settlement
                         or other disposition thereof, for which GSK seeks
                         indemnification under this Section 12.07 provided that
                         PACIFIC shall first obtain a general release and
                         discharge from all liability pertaining to the subject
                         matter of such settlement for the benefit of GSK.
         12.08 During the entire period of time commencing on Launch by GSK of
LICENSED PRODUCT in USA and until five (5) years after the expiration of this
AGREEMENT or earlier termination, each party shall obtain and/or maintain,
respectively, at its sole cost and expense, product liability insurance in
amounts, respectively, which are reasonable and customary in the respective
industries of the parties for companies of comparable size and activities.
Notwithstanding anything in this AGREEMENT to the contrary, PACIFIC shall
maintain product liability insurance in an amount not less than ten (10) million
US dollars per occurrence (or claim) and in the aggregate annually. Such product
liability insurance shall insure against all liability, including liability for
personal injury, physical injury and property damage. Each party shall provide
written proof of the existence of such insurance to the other party upon
request.

13.      FORCE MAJEURE
         -------------
         13.01 If the performance of any part of this AGREEMENT by either party,
or of any obligation under this AGREEMENT, is prevented, restricted, interfered
with or delayed by reason of any cause beyond the reasonable control of the
party liable to perform, unless conclusive evidence to the contrary is provided,
the party so affected shall, upon giving written notice to the other party, be

                                                                         Page 31
<PAGE>

excused from such performance to the extent of such prevention, restriction,
interference or delay, provided that the affected party shall use its reasonable
efforts to avoid or remove such causes of non-performance and shall continue
performance with the utmost dispatch whenever such causes are removed. When such
circumstances arise, the parties shall discuss what, if any, modification of the
terms of this AGREEMENT may be required in order to arrive at an equitable
solution.

14.      GOVERNING LAW AND DISPUTE RESOLUTION
         ------------------------------------
         14.01 This AGREEMENT shall be governed by the laws of the Commonwealth
of Pennsylvania and its form, execution, validity, construction and effect shall
be determined in accordance with the same.
         14.02 Any dispute, controversy or claim arising out of or relating to
this AGREEMENT (hereinafter collectively referred to as "Dispute") shall be
attempted to be settled by the parties, in good faith, by submitting each such
Dispute to appropriate senior management representatives of each party in an
effort to effect a mutually acceptable resolution thereof.
         14.03 In the event no mutually acceptable resolution of such Dispute is
achieved in accordance with Paragraph 14.02 within a reasonable period of time,
then either party shall be entitled to seek final settlement of such Dispute by
any administrative or judicial mechanism which may be available.

15.      WAIVER OF BREACH
         ----------------
         15.01 The failure of either party at any time or times to require
performance of any provision hereof shall in no manner affect its rights at a
later time to enforce the same. No waiver by either party of any condition or
term in any one or more instances shall be construed as a further or continuing
waiver of such condition or term or of another condition or term.

16.      SEPARABILITY
         ------------
         16.01 In the event any portion of this AGREEMENT shall be held illegal,
void or ineffective, the remaining portions hereof shall remain in full force
and effect.

                                                                         Page 32
<PAGE>

         16.02 If any of the terms or provisions of this AGREEMENT are in
conflict with any applicable statute or rule of law, then such terms or
provisions shall be deemed inoperative to the extent that they may conflict
therewith and shall be deemed to be modified to conform with such statute or
rule of law.
         16.03 In the event that the terms and conditions of this AGREEMENT are
materially altered as a result of Paragraphs 16.01 or 16.02, the parties will
renegotiate the terms and conditions of this AGREEMENT to resolve any
inequities.

17.      ENTIRE AGREEMENT
         ----------------
         17.01 This AGREEMENT, together with a Stock Purchase Agreement and a
Trademark Assignment, each entered into as of the EFFECTIVE DATE, constitute the
entire agreement between the parties relating to the subject matter hereof and
supersedes all previous writings and understandings. No terms or provisions of
this AGREEMENT shall be varied or modified by any prior or subsequent statement,
conduct or act of either of the parties, except that the parties may amend this
AGREEMENT by written instruments specifically referring to and executed in the
same manner as this AGREEMENT.

18.      NOTICES
         -------
         18.01 Notices required or permitted under this AGREEMENT shall be in
writing and sent by prepaid registered or certified air mail or by overnight
express mail (e.g., FedEx), or by facsimile confirmed by prepaid registered or
certified air mail letter or by overnight express mail (e.g., FedEx), and shall
be deemed to have been properly served to the addressee upon receipt of such
written communication, to the following addresses of the parties:

                  If to PACIFIC:    Pacific Health Laboratories, Inc.
                                            1480 Route 9 North
                                            Suite 204
                                            Woodbridge, NJ  07095
                                            Attention:  President
                                            Facsimile No._  732-636-7410

                                                                         Page 33
<PAGE>

                  Copy to:                  Gary A. Miller
                                            Eckert Seamans Cherin & Mellott
                                            1515 Market St., 9th Floor
                                            Philadelphia, PA 19102
                                            Facsimile No.: 215-851-8383

                  If to GSK:    Vice President and Director, Consumer Healthcare
                                Worldwide Business Development
                                SmithKline Beecham Corporation (trading as
                                GlaxoSmithKline)
                                One Franklin Plaza
                                P.O. Box 7929
                                Philadelphia, Pennsylvania 19101,  U.S.A.
                                Facsimile No.: 215-751- 4221

                  Copy to:

                           SmithKline Beecham Corporation (trading as
                           GlaxoSmithKline)
                           One Franklin Plaza (Mail Code FP2360)
                           P.O. Box 7929
                           Philadelphia, Pennsylvania  19101,  U.S.A.
                           Attention:  Corporate Law - U.S.
                           Facsimile No.: 215-751-3935

19.      ASSIGNMENT
         ----------
         19.01 This AGREEMENT and the licenses herein granted shall be binding
upon and inure to the benefit of the successors in interest of the respective
parties. Neither this AGREEMENT nor any interest hereunder shall be assignable
by either party without the written consent of the other provided, however, that
each party may assign this AGREEMENT or any part of its rights and obligations
hereunder to any AFFILIATE of such party or to any corporation with which such
party may merge or consolidate, or to which it may transfer all or substantially
all of its assets to which this AGREEMENT relates, without obtaining the consent
of the other party hereto.

20.      RECORDING
         ---------
         20.01 GSK shall have the right, at any time, to record, register, or
otherwise notify this AGREEMENT in appropriate governmental or regulatory
offices anywhere in the TERRITORY, and PACIFIC shall provide reasonable
assistance to GSK in effecting such recording, registering or notifying.

                                                                         Page 34
<PAGE>

21.      EXECUTION IN COUNTERPARTS
         -------------------------
         21.01 This AGREEMENT may be executed in any number of counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties, through their authorized officers,
have executed this AGREEMENT as of the date first written above.

SMITHKLINE BEECHAM PLC

BY:__________________

TITLE: ______________

PACIFIC HEALTH LABORATORIES INC.

BY:__________________

TITLE:_______________

                                                                         Page 35
<PAGE>

                                LICENSE AGREEMENT

                                   APPENDIX A
                                 PATENT APPENDIX
<TABLE>
<CAPTION>
------------------------ --------------------- --------------------- ---------------------------------------------------
       File No.               Serial No.            Patent No.                             Title
                             Filing Date            Issue Date
------------------------ --------------------- --------------------- ---------------------------------------------------
    Pacific 3.0-003           09/510,809            6,207,638             Nutritional Intervention Composition for
                               2/23/00               3/27/01                  Enhancing and Extending Satiety
------------------------ --------------------- --------------------- ---------------------------------------------------
<S>                      <C>                   <C>                   <C>
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
          [*]                    [*]                                                        [*]
------------------------ --------------------- --------------------- ---------------------------------------------------
</TABLE>

                                                                         Page 36
<PAGE>

                                   APPENDIX B
                           PHARMACOVIGILANCE AGREEMENT
                  Procedure for Exchange of Adverse Event data

BACKGROUND:

Pacific and GSK have entered into an Agreement for the development and
commercialization of "Satietrol(R)".

DEFINITIONS
-----------
The following definitions reflect and are consistent with FDA and International
Conference on Harmonization (ICH) regulations/guidelines.

Adverse Experience (AE)
-----------------------
The ICH has defined an AE as "any untoward medical occurrence in a patient or
clinical investigation subject administered a pharmaceutical product and which
does not necessarily have to have a causal relationship with this treatment."

o   Adverse Drug Reaction (ADR)
    ---------------------------
    In the pre-approval clinical experience or in other clinical trial
    experiences The ICH has defined an ADR in clinical trials as "all noxious
    and unintended responses to a medical product related to any dose". The
    phrase "responses to a medicinal product" means that a causal relationship
    between a medicinal product and an adverse event is at least a reasonable
    possibility, i.e. the relationship cannot be ruled out.

    For marketed medical products: The ICH had defined an ADR in marketed
        medicinal products as "a response to a drug which is noxious and
        unintended and which occurs at doses normally used in man for
        prophylaxis, diagnosis or therapy of disease or for modification of
        physiological function."

o   Unexpected ADR
    --------------
    The ICH has defined an unexpected ADR as "an adverse reaction, the nature or
    severity of which is not consistent with the applicable product information
    (e.g. Investigator Brochure) for an unapproved investigational medicinal
    product.

    This definition includes an AE/adr of which the nature, specificity, or
    severity is inconsistent with the applicable product information. For an
    AE/ADR from a clinical trial, the reference document shall be the
    Investigator Brochure.

                                                                         Page 37
<PAGE>

Serious AE or Serious ADR
-------------------------
A serious AE or ADR is any untoward medical occurrence that:
* results in death
* is life-threatening
        NOTE: The term "life-threatening" in the definition of "serious" refers
    to an event in which the patient was at risk of death at the time of the
    event; it does not refer to an event which hypothetically might have
    caused death if it were more severe.
* requires inpatient hospitalization or prolongation of existing hospitalization
* results in persistent or significant disability/incapacity * is a congenital
  anomaly/birth defect.

Medical and scientific judgment should be exercised in deciding whether
expedited reporting is appropriate in other situations, such as important
medical events that may not be immediately life-threatening or result in death
or hospitalization but may jeopardize the patient or may require intervention to
prevent one of the other outcomes listed in the definition above. These should
also usually be considered serious. (Examples of such events are intensive
treatment in an emergency room or at home for allergic bronchospasm; blood
dyscrasias or convulsions that do not result in hospitalization; or development
of drug dependency or drug abuse.)

o    Non-Serious AE
     --------------
     A non-serious AE is any experience, which does not meet the definition of
serious as defined above.

     Clinical trial experiences which are not considered "serious" include:
     hospitalization for a pre-planned/elective procedure for a medical
     condition present before treatment started; a pre-existing medical
     condition which does not increase in severity or frequency following
     treatment; or an experience which is simply a treatment failure according
     to the efficacy criteria for the study.

o    Spontaneous reports
     Reports from any source other than a clinical trial source, including
     regulatory agencies, health care professionals, consumers and literature,
     shall be classified for reporting purposes as a spontaneous report.

REPORTING
---------
o    Reports of Pregnancy and Overdose
     ---------------------------------
     While such reports are not AEs or ADRs as defined herein, reports of
     pregnancies should be followed up until the outcome of the pregnancy is
     known. "Overdose" will be defined as any single dose that exceeds the
     recommended total daily dose.

o    Minimum criteria for reporting
     ------------------------------
     Initial reports should be submitted within the agreed timelines as long as
     the following minimum criteria are met:

                                                                         Page 38
<PAGE>

       an identifiable patient; a suspect medicinal product; an identifiable
       reporting source; and an event or outcome

o    Follow-up of Cases
     ------------------
     The party who is the initial recipient of an AE/ADR report shall be
     responsible for appropriate follow-up of that AE/ADR report and timely
     transmission of relevant new information to the other party.

POLICY
------
o    GSK will hold the recognized worldwide safety database for LICENSED PRODUCT
o    GSK is responsible for regulatory reporting in the TERRITORY.
o    If either party becomes aware of a safety issue they will immediately
     inform the other party.
o    Each party will inform the other party of any safety related queries from a
     regulatory authority.

DATA EXCHANGE
-------------
o    Data will be transferred in English by fax.
o    GSK is responsible for receiving and forwarding reports to and from other
     GSK sub-licensees (if applicable)
o    GSK will notify Pacific either electronically or by facsimile of all
     serious AE reports (including both clinical trial and spontaneous AEs) that
     GSK receives within two calendar days of receipt of such reports by the GSK
     Safety Department in the United Kingdom. When the minimum information
     required for reporting can not be transmitted due to translation
     difficulties, GSK shall notify Pacific within three working days of initial
     receipt of such reports.
o    GSK will notify Pacific by facsimile of any fatal or life-threatening ADRs
     within twenty-four (24) hours of receipt.
o    Pacific will provide GSK with CIOMS I forms (electronically or by
     facsimile) for all serious AEs within two (2) calendar days of receipt.
o    Pacific will notify GSK by facsimile of any fatal or life-threatening ADRs
     within twenty-four (24) hours of receipt by CPI.
o    Non-serious spontaneous AE reports received by Pacific will be submitted to
     GSK within five working days of receipt of such reports by Pacific.
o    Pacific is responsible for receiving and forwarding reports to and from
     other Pacific-licensees (if applicable).
o    GSK is responsible for receiving and forwarding reports to and from other
     GSK-sublicensees (if applicable).

LITERATURE REPORTS:

Each party shall be responsible for scanning the literature for case reports in
any territory in which it holds registration rights as set forth in this
Agreement.

                                                                         Page 39
<PAGE>

REGULATORY REPORTING:

o    Reporting (where appropriate) of domestic or foreign cases to the local
     regulatory authorities is the responsibility of the local registration
     holder.
     o   GSK shall be responsible for reporting of cases to the local regulatory
         authorities in those countries where GSK is the local registration
         holder. In some territories, regulatory submission of serious cases is
         not a requirement, but is undertaken voluntarily by GSK.
     o   Pacific shall be responsible for reporting cases (where appropriate) to
         the local regulatory authorities in those countries where Pacific is
         the local registration holder.

GSK will send PACIFIC
----------------------
Copies of end of study reports

PACIFIC will send to GSK:
-------------------------
Copies of end of study reports

PHARMACOVIGILANCE CONTACTS IN EACH PARTY:
-----------------------------------------

    For GSK:

    Contact for AEs originating in countries other
    than the Americas:
    Barbara D Jones
    Product Safety Manager
    GSK CH Research & Development
    St George's Ave
    Weybridge,
    Surrey
    UK
    Tel +44 1932 82 21 50
    Fax+44 1932 82 21 56

    Contact for AEs originating in the Americas:
    Dr Reineirio Deza
    Director, NA Medical Affairs & Safety
    GSK Consumer Healthcare
    100 Beecham Drive
    Pittsburgh, PA 15205 USA
    Tel: (412)928-1085
    Fax: (412)928-6958

                                                                         Page 40
<PAGE>

    For PACIFIC:
    ------------

     Dr Robert Portman
     President
     Pacific Healthcare Laboratories Inc.
     1480 Route 9 NorthSuite 204
     Woodbridge, NJ  07095
     Facsimile No._  732-636-7410

                                                                         Page 41
<PAGE>

                                   APPENDIX C
TRADE MARKS AND DOMAIN NAMES TO BE ASSIGNED TO GSK
DOMAIN NAME:
www.satietrol.com
TRADEMARKS:

SATIETROL - serial number: 75/742,879
SATIETROL COMPLETE  - serial number: 76/ 154,906 (application pending as at the
EFFECTIVE DATE)

(in each case registered / filed in US only)

                                                                         Page 42
<PAGE>

                                   APPENDIX D
COUNTRIES IN WHICH PACIFIC IS ACTIVELY COMMERCIALIZING THE PMV VARIANT OF
LICENSED PRODUCT AS AT THE EFFECTIVE DATE.

BRAZIL
GUATEMALA
JAPAN
KOREA
MEXICO
SOUTH AFRICA
SINGAPORE
USA

                                                                         Page 43<PAGE>   1
                                                                     Exhibit 4.1

         PUBLIC CREDIT AND REPACKAGED SECURITIES(SM) (PCARS)(SM) TRUSTS

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

                       STANDARD TERMS FOR TRUST AGREEMENTS

                   Credit And Repackaging Vehicle Corporation
                                  as Depositor

                                       and

                Wells Fargo Bank Minnesota, National Association
                                   as Trustee

                               Dated July -, 2001

--------------------------------------------------------------------------------
<PAGE>   2
Certain Sections of these Standards Terms for Trust Agreements relating to
Sections 310 through 318, inclusive, of the Trust Indenture Act of 1939:

<TABLE>
<CAPTION>
Trust Indenture                                                                          Indenture Section
Act Section
<S>                                                                                      <C>
Section 310(a)(1)..................................................................................10.06(a)
                                                                                                   10.07(c)
           (a)(2)..................................................................................10.06(a)
           (a)(3)..................................................................................10.10(b)
           (a)(4)............................................................................Not applicable
           (a)(5)..................................................................................10.06(a)
           (b).....................................................................................10.06(b)
Section 311(a).........................................................................................6.05
           (b).........................................................................................6.05
Section 312(a)...............................................................................Not applicable
           (b)......................................................................................4.05(b)
           (c)......................................................................................4.05(c)
Section 313(a)......................................................................................4.02(f)
           (b)......................................................................................4.02(f)
           (c)......................................................................................4.02(f)
                                                                                                    6.04(c)
                                                                                                    8.01(c)
           (d)......................................................................................4.02(f)
Section 314(a)(1)...................................................................................6.04(a)
           (a)(2)...................................................................................6.04(b)
           (a)(3)...................................................................................6.04(c)
           (a)(4)............................................................................Not applicable
           (b)...............................................................................Not applicable
           (c)...............................................................................Not applicable
           (d)...............................................................................Not applicable
           (e)...............................................................................Not applicable
Section 315(a)..................................................................................10.01(e)(i)
           (b)......................................................................................8.01(c)
           (c).....................................................................................10.01(c)
           (d).....................................................................................10.01(e)
           (d)(2)..............................................................................10.01(e)(ii)
           (d)(3)............................................................................Not applicable
           (e)...............................................................................Not applicable
Section 316(a)(1)............................................................................Not applicable
           (a)(1)(A).........................................................................Not applicable
           (a)(1)(B)...............................................................................12.01(c)
           (a)(2)............................................................................Not applicable
           (b)...............................................................................Not applicable
           (c)...............................................................................Not applicable
Section 317(a)......................................................................................8.01(a)
           (b)......................................................................................5.10(a)
Section 318 ..........................................................................................12.09
</TABLE>

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of any Trust Agreement.
<PAGE>   3
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                <C>
                                    ARTICLE I

                            DEFINITIONS; CONSTRUCTION

SECTION 1.01.    Definitions.....................................................................    2

SECTION 1.02.    Rules of Construction...........................................................   13

SECTION 1.03.    Article and Section References..................................................   14

SECTION 1.04.    References to Credit Support, Swap Agreement
                 and Call Right..................................................................   14

                                   ARTICLE II

                DECLARATION OF TRUST; ENTRY INTO SWAP AGREEMENT;
                            ISSUANCE OF CERTIFICATES

SECTION 2.01.    Creation and Declaration of Trust; Assignment of Securities.....................   14

SECTION 2.02.    Swap Agreement, Swap Guarantee and Underwriting Agreement.......................   15

SECTION 2.03.    Acceptance by Trustee...........................................................   16

SECTION 2.04.    Sale............................................................................   16

SECTION 2.05.    Representations and Warranties of the Depositor.................................   16

SECTION 2.06.    Agreement to Execute, Authenticate and Deliver Certificates.....................   17

                                   ARTICLE III

               TRUST POWERS; ADMINISTRATION OF THE TRUST PROPERTY

SECTION 3.01.    Trust Property..................................................................   18

SECTION 3.02.    Administration of the Trust.....................................................   18

SECTION 3.03.    Collection of Certain Payments..................................................   20

SECTION 3.04.    Certificate Account.............................................................   20

SECTION 3.05.    Investment of Funds in the Accounts.............................................   21

SECTION 3.06.    Retained Interest...............................................................   22

SECTION 3.07.    Access to Certain Documentation.................................................   22
</TABLE>
<PAGE>   4
<TABLE>
<S>                                                                                                <C>
                                   ARTICLE IV

                DISTRIBUTIONS TO CERTIFICATEHOLDERS AND REPORTING

SECTION 4.01.    Distributions...................................................................   22

SECTION 4.02.    Reports to Certificateholders...................................................   22

SECTION 4.03.    Calculation of Interest Rates...................................................   25

SECTION 4.04.    Compliance with Tax Reporting and Withholding Requirements......................   25

SECTION 4.05.    Preservation of Information, Communications to Holders..........................   25

                             ARTICLE V

                         THE CERTIFICATES

SECTION 5.01.    The Certificates................................................................   26

SECTION 5.02.    Execution, Authentication and Delivery..........................................   26

SECTION 5.03.    Temporary Certificates..........................................................   27

SECTION 5.04.    Registration; Registration of Transfer and Exchange.............................   28

SECTION 5.05.    Mutilated, Destroyed, Lost and Stolen Certificates..............................   29

SECTION 5.06.    Distributions in Respect of Certificates........................................   30

SECTION 5.07.    Persons Deemed Owners...........................................................   30

SECTION 5.08.    Cancellation....................................................................   31

SECTION 5.09.    Currency of Distributions in Respect of Certificates; Redenomination............   31

SECTION 5.10.    Appointment of Paying Agent.....................................................   31

SECTION 5.11.    Authenticating Agent............................................................   33

SECTION 5.12.    Issuance and Transfer Restrictions..............................................   34

SECTION 5.13.    Optional Exchange...............................................................   38

SECTION 5.14.    Callable Certificates...........................................................   39

                            ARTICLE VI

                           THE DEPOSITOR

SECTION 6.01.    Liability of the Depositor......................................................   40

SECTION 6.02.    Limitation on Liability of the Depositor........................................   41
</TABLE>
<PAGE>   5
<TABLE>
<S>                                                                                                <C>
SECTION 6.03.    Depositor May Purchase Certificates.............................................   41

SECTION 6.04.    Preparation and Filing of Exchange Act Reports; Obligations of the Depositor....   41

SECTION 6.05.    Preferential Collection of Claims Against Depositor.............................   42

                            ARTICLE VII

                   RIGHTS OF CERTIFICATEHOLDERS

SECTION 7.01.    Voting Rights with Respect to Securities........................................   42

SECTION 7.02.    Amendments and Waivers Under Swap Agreement and Swap Guarantee..................   44

                                  ARTICLE VIII

                   DEFAULT ON SECURITIES, CREDIT SUPPORT, SWAP
               AGREEMENT, SWAP GUARANTEE OR PERMITTED INVESTMENTS

SECTION 8.01.    Realization Upon Default........................................................   44

                            ARTICLE IX

                 WIND-UP AND LIQUIDATION OF TRUST

SECTION 9.01.    Trust Wind-Up Events............................................................   45

SECTION 9.02.    Liquidation Events..............................................................   46

SECTION 9.03.    Trust Property Made Available...................................................   46

SECTION 9.04.    Limitation on Notice Requirement................................................   48

SECTION 9.05.    Excess Expense Event............................................................   49

                             ARTICLE X

                      CONCERNING THE TRUSTEE

SECTION 10.01.   Duties of Trustee...............................................................   49

SECTION 10.02.   Certain Matters Affecting the Trustee...........................................   50

SECTION 10.03.   Limitation on Liability of Trustee..............................................   52

SECTION 10.04.   Trustee May Own Certificates....................................................   52

SECTION 10.05.   Trustee Fees and Expenses; Limited Indemnification..............................   52
</TABLE>
<PAGE>   6
<TABLE>
<S>                                                                                                <C>
SECTION 10.06.   Eligibility Requirements for Trustee............................................   53

SECTION 10.07.   Resignation or Removal of the Trustee...........................................   54

SECTION 10.08.   Successor Trustee...............................................................   55

SECTION 10.09.   Merger or Consolidation of Trustee..............................................   55

SECTION 10.10.   Appointment of Co-Trustee.......................................................   55

SECTION 10.11.   Representations and Warranties of Trustee.......................................   56

SECTION 10.12.   Non-Petition....................................................................   58

                            ARTICLE XI

                            TERMINATION

SECTION 11.01.   Termination of the Trust........................................................   58

                            ARTICLE XII

                        MISCELLANEOUS TERMS

SECTION 12.01.   Amendment of Trust Agreement....................................................   59

SECTION 12.02.   Counterparts....................................................................   60

SECTION 12.03.   Limitation on Rights of Certificateholders......................................   60

SECTION 12.04.   Governing Law; Jurisdiction.....................................................   61

SECTION 12.05.   Notices.........................................................................   61

SECTION 12.06.   Severability of Terms...........................................................   61

SECTION 12.07.   Perfection of Swap Counterparty Security Interest...............................   62

SECTION 12.08.   No Recourse.....................................................................   62

SECTION 12.09.   Conflict With Trust Indenture Act...............................................   62

EXHIBIT A                    Form of Trust Agreement and Terms Schedule

EXHIBIT B                    Form of Certificate
</TABLE>
<PAGE>   7
         PUBLIC CREDIT AND REPACKAGED SECURITIES(SM) (PCARS)(SM) TRUSTS

                               STANDARD TERMS FOR
                                TRUST AGREEMENTS

         These Standard Terms for Trust Agreements, dated July [ ], 2001 (these
"Standard Terms"), may be incorporated by reference in one or more trust
agreements (each, a "Trust Terms Agreement") relating to a particular series of
Public Credit and Repackaged Securities(SM) (PCARS)(SM) Trust Certificates
described in the Prospectus dated July [ ], 2001 and the applicable Prospectus
Supplement. Each Trust Terms Agreement may be in the form of Exhibit A hereto or
such other form as Credit And Repackaging Vehicle Corporation, as depositor (the
"Depositor"), and Wells Fargo Bank Minnesota, National Association, as trustee
(the "Trustee"), may approve, such approval to be evidenced by their execution
of such Trust Agreement. Incorporation by reference of these Standard Terms into
a Trust Terms Agreement is for convenience only to avoid the necessity of
physically including these Standard Terms in such Trust Terms Agreement, and
each trust created by a Trust Terms Agreement shall be a legally separate and
distinct trust from any other trust created by a Trust Terms Agreement into
which these Standard Terms may also be incorporated by reference. These Standard
Terms shall by themselves be of no force and effect, and shall only have effect
as and to the extent incorporated by reference into a Trust Terms Agreement.
Execution hereof by the Trustee and the Depositor is for purposes of
identification only and the absence of such execution shall not affect the
validity of any Trust Agreement or these Standard Terms to the extent
incorporated therein. Each Trust Terms Agreement into which these Standard Terms
are incorporated by reference, including the Terms Schedule attached thereto and
made a part thereof and these Standard Terms so incorporated by reference
therein, as amended, modified or supplemented from time to time, shall together
constitute a single trust agreement and are referred to herein as the "Trust
Agreement". In the event of a conflict between any Trust Terms Agreement,
including the Terms Schedule attached thereto, and these Standard Terms, the
Trust Terms Agreement the Terms Schedule shall control.
<PAGE>   8
                                   ARTICLE I

                            Definitions; Construction

SECTION 1.01.     Definitions

         Except as otherwise specified herein or as the context may otherwise
require, the following terms have the respective meanings set forth below for
all purposes of these Standard Terms:

         "Affected Securities". With respect to any Liquidation Event, the
Securities affected by a Security Default, Disqualified Securities or Securities
related to a Disqualified Swap Transaction, as the case may be.

         "Affected Swap Party". As defined in the Swap Agreement.

         "Affected Swap Transaction". As defined in the Swap Agreement.

         "Affiliate". With respect to any Person, any other Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, such Person. For purposes of this definition, "control", when used
with respect to any Person, means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

         "Alternative ERISA Restrictions". The restrictions on transfer of
Certificates set forth in Section 5.12(c)(i).

         "Authenticating Agent". As defined in Section 5.11.

         "Available Funds". With respect to any Distribution Date, the sum of
(i) all amounts received by the Trustee on or with respect to the Securities or
other Trust Property, plus (ii) all investment income from Permitted
Investments, plus (iii) all Swap Amounts, if any, paid to the Trustee by the
Swap Counterparty pursuant to the Swap Agreement, or by any Swap Guarantor
pursuant to any Swap Guarantee, minus (iv) all amounts paid or payable to the
Swap Counterparty by the Trustee pursuant to the Swap Agreement, minus (v) any
amounts reimbursable to the Trustee under Section 10.02(ix). To the extent that
the amount constituting such sum is on deposit in the Certificate Account and
available for distribution on such Distribution Date.

         "Bearer Certificate". Any Certificate (with or without coupons), title
of which passes by delivery only, but exclusive of any coupons.

         "Benefit Plan". As defined in Section 5.12(c)(i).

         "Book-Entry Certificate". A Certificate represented by a Global
Certificate.

                                       2
<PAGE>   9
         "Business Day". Unless otherwise specified in the Terms Schedule, any
day, other than a Saturday or Sunday, that is (i) not a day on which banking
institutions are authorized or required by law or regulation to be closed in (A)
The City of New York or in the city where the Corporate Trust Office is located
or (B) if the Specified Currency is other than Dollars, the financial center of
the country issuing the Specified Currency and (ii) if the Interest Rate is
based on the London Interbank Borrowing Rate, a day on which dealings in
deposits in the Specified Currency are transacted in the London interbank
market.

         "Calculation Agent". As specified in the Terms Schedule, if so
specified.

         "Call Date". As defined in Section 5.14(a).

         "Call Price". As defined in Section 5.14(a).

         "Call Right". As defined in Section 5.14(a).

         "Callable Series". A Series so designated in the Terms Schedule
providing for a Call Right with respect to the Certificates of such Series.

         "Certificate Account". As defined in Section 3.04.

         "Certificate Document". A certificate in the form attached as Exhibit
B, evidencing a Certificate.

         "Certificate of Non-U.S. Beneficial Ownership". As defined in Section
5.12(b)(iii).

         "Certificate Register" and "Certificate Registrar". As defined in
Section 5.04.

         "Certificateholder". In the case of a Registered Certificate, the
Person in whose name such Certificate is registered in the Certificate Register
on the applicable Record Date, and in the case of a Bearer Certificate, the
bearer of such Certificate.

         "Certificates". The securities authorized by, and authenticated and
delivered under, the Trust Agreement and evidenced by one or more Certificate
Documents.

         "Class". A separately denominated class of Certificates of any Series,
entitled to specified rights with respect to the Trust Property.

         "Clearstream". Clearstream Banking operated by Clearstream
International.

         "Closing Date". As specified in the Terms Schedule.

         "Code". The Internal Revenue Code of 1986, as amended, and Treasury
Regulations promulgated thereunder.

                                       3
<PAGE>   10
         "Commission". The Securities and Exchange Commission, or any successor
agency.

         "Concentrated Security". Any Security that on the Closing Date
constitutes 10% or more of the Securities held by the Trust.

         "Corporate Trust Office". The Trustee's offices at 213 Court Street,
Suite 902, Middletown, CT 06457, or such other address as the Trustee may
designate from time to time by notice to the Certificateholders, the Depositor,
the Swap Counterparty and the Swap Guarantor.

         "Credit Support". With respect to any Series (or any Class within such
Series), any combination of insurance policies, letters of credit, reserve
accounts and other types of rights or assets designed to support or ensure the
servicing and distribution of amounts due in respect of the Trust Property,
which in each case is specified as such in the Terms Schedule.

         "Credit Support Default". As specified in the Terms Schedule.

         "Credit Support Provider". With respect to any Series (or any Class
within such Series), the bank issuing a letter of credit or the financial
guarantor or surety company issuing a financial guaranty or surety bond that
serves as Credit Support.

         "Currency". Dollars or Foreign Currency.

         "Cut-Off Date". As defined in the Terms Schedule.

         "Definitive Registered Certificate". A Registered Certificate in
definitive, certificated form without coupons attached.

         "Depositary". DTC or, if specified in the Terms Schedule, Euroclear or
Clearstream or any other depositary.

         "Depositor". As defined in the preamble hereto, including any
successors and permitted assigns.

         "Disqualified Credit Support". Any Credit Support with respect to which
(i) the Credit Support Provider ceases to be an Eligible Issuer and no means of
replacing such Credit Support Provider or otherwise satisfying the Depositor's
reporting obligations under the Exchange Act regarding such Credit Support is
described in the Terms Schedule, or (ii) whether or not the Credit Support
Provider was initially an Eligible Issuer, it becomes impossible or
impracticable for the Depositor to satisfy its reporting obligations under the
Exchange Act regarding such Credit Support.

         "Disqualified Security". Any (i) Concentrated Security the issuer of
which ceases to be an Eligible Issuer and (ii) any Security other than a
Concentrated Security the issuer

                                       4
<PAGE>   11
of which ceases to be an Eligible Issuer or a Reporting Issuer, in each case of
clauses (i) and (ii) unless any additional means of providing current
information regarding such Security Issuer is described in the Terms Schedule
and available.

         "Disqualified Swap Transaction". Any Swap Transaction with respect to
which (i) the Swap Counterparty ceases to be an Eligible Issuer, unless any
means of replacing such Swap Counterparty or otherwise satisfying the
Depositor's reporting obligations under the Exchange Act is described in the
Terms Schedule and available, (ii) whether or not the related Swap Counterparty
was initially an Eligible Issuer, it becomes impossible or impracticable for the
Depositor to satisfy its reporting obligations under the Exchange Act, or (iii)
in the case of a credit swap transaction, the Deliverable Obligation (as defined
in the Swap Agreement) has become a Disqualified Security.

         "Distribution Date". As specified in the Terms Schedule.

         "Dollar", "$" or "USD". Such currency of the United States as at the
time of payment is legal tender for the payment of public and private debts.

         "DTC". The Depository Trust Company, a limited purpose trust company
organized under the laws of the State of New York, including any successors and
assigns.

         "Early Swap Termination Date". The "Early Termination Date" as defined
in the Swap Agreement.

         "Eligible Account". A non-interest bearing account, held in the United
States, in the name of the Trustee for the benefit of the Certificateholders,
that is either (i) a segregated account maintained with a Federal or State
chartered depository institution or trust company the short-term and long-term
unsecured debt obligations of which (or, in the case of a depository institution
or trust company that is the principal subsidiary of a holding company, the
short-term and long-term unsecured debt obligations of which) are rated P-1 and
Aaa by Moody's, or A-1+ and AAA by S&P at the time any amounts are held on
deposit therein, including when such amounts are initially deposited therein, or
(ii) a segregated trust account maintained as a segregated account and held by
the Trustee at its Corporate Trust Office in trust for the benefit of the
Certificateholders.

         "Eligible Issuer". Any corporation, limited partnership, trust, limited
liability company or other organization, banking organization or insurance
company, in each case which (i) is eligible to register and offer securities
under paragraph I.B.1 of the General Instructions to Form S-3 under the
Securities Act, (ii) has (or is a direct or indirect subsidiary of a
corporation, limited partnership, trust, limited liability company or other
organization, banking organization or insurance company, in each case which has)
common equity securities registered under Section 12 of the Exchange Act and
(iii) is subject to the reporting requirements of the Exchange Act and which, in
accordance therewith, files reports and other information with the Commission
(or another applicable agency pursuant to Section 12(i) of the Exchange Act).
For all purposes under the Trust

                                       5
<PAGE>   12
Agreement, a Person which is fully guaranteed by a guarantor that is an Eligible
Issuer shall be considered an Eligible Issuer.

         "ERISA". The Employee Retirement Income Security Act of 1974, as
amended, including any successor statute.

         "ERISA Plan". As defined in Section 5.12(c)(iii).

         "Euroclear". The Euroclear System operated by Euroclear Bank S.A./N.V.

         "Excess Expense Event". As defined in Section 9.05(a).

         "Exchange Act". The Securities Exchange Act of 1934, as amended.

         "Exchange Rate Agent". Unless otherwise specified in the Terms
Schedule, Goldman Sachs or any Affiliate or agent of Goldman Sachs designated by
it.

         "Exchangeable Series". A series so designated in the Terms Schedule
which grants Certificateholders the right to exchange their Certificates for pro
rata portions of the Trust Property.

         "Executive Officer". With respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any
Assistant Treasurer thereof; with respect to any partnership, any general
partner thereof.

         "Extraordinary Trust Expense". As defined in Section 10.05(b).

         "Foreign Currency". A currency issued by the government of any country
other than the United States or a composite currency the value of which is
determined by reference to the values of the currencies of any group of
countries.

         "Global Certificate". A Certificate in global form issued to the
Depositary and (in the case of a Registered Certificate) registered in the name
of the Depositary or its nominee.

         "Goldman Sachs". Goldman, Sachs & Co., including any successors and
permitted assigns.

         "Initial Security Accrual Period". The period from and including the
Closing Date to but excluding the next Security Payment Date.

         "Initial Swap Rate Accrual Period". The period from and including the
Closing Date to but excluding the next Swap Payment Date.

                                       6
<PAGE>   13
         "Interest Rate". The interest rate applicable to the Certificates as
determined in accordance with Section 4.03, including, if applicable, by
reference to the Terms Schedule.

         "Investment Company Act". The Investment Company Act of 1940, as
amended.

         "Liquidation Event". Any of the events described in Section 9.02.

         "Maximum Reimbursable Amount". As specified in the Terms Schedule (or
any other amount specified by the party agreeing to indemnify the Trustee).

         "Moody's". Moody's Investors Service Inc., including any successor
rating agency.

         "Notional Amount". The notional amount specified in the Terms Schedule
with respect to any Class of Certificates, with respect to which distributions
of interest or other distributions are determined but which does not represent a
Principal Balance.

         "Officers' Certificate". The certificate signed by any one (or, if
specified in the Trust Agreement, more than one) Executive Officer of the
applicable Person, and delivered to the Trustee.

         "Opinion of Counsel". A written opinion of counsel, who may, except as
otherwise expressly provided in the Trust Terms Agreement, be counsel for the
Depositor, acceptable to the Trustee.

         "Optional Exchange Date". As defined in Section 5.13(c).

         "Outstanding". As of any date of determination, all Certificates
theretofore authenticated and delivered under the Trust Agreement, except for:

         (i)      Certificates theretofore canceled by the Certificate Registrar
                  or delivered to the Trustee for cancellation;

         (ii)     Certificates for whose payment or redemption money in the
                  necessary amount has been deposited with the Trustee or any
                  Paying Agent (other than the Depositor) in trust, or set aside
                  and segregated in trust by the Depositor (if the Depositor is
                  acting as its own Paying Agent), for the holders of such
                  Certificates, provided, if such Certificates are to be
                  redeemed, notice of such redemption has been duly given
                  pursuant to the Trust Agreement or provision therefore
                  satisfactory to the Trustee has been made; and

         (iii)    Certificates in exchange for or in lieu of which other
                  Certificates have been authenticated and delivered pursuant to
                  the Trust Agreement, unless proof satisfactory to the Trustee
                  is presented that any such Certificates are

                                       7
<PAGE>   14
                  held by a bona fide purchaser in whose hands such Certificates
                  represent interests in the Trust.

         "Paying Agent".  As defined in Section 5.10.

         "Permitted Investments". All investments made by the Trustee pursuant
to Section 3.05 in any one or more of the following; provided that the total
return specified by the terms of each such obligation or security shall be at
least equal to the purchase price thereof; provided, further, that each such
obligation or security shall be held in the name of the Trustee on behalf of the
Trust:

         (i)      direct obligations of, and obligations fully guaranteed by,
                  the United States, the Federal Home Loan Mortgage Corporation,
                  the Federal National Mortgage Association, the Federal Farm
                  Credit System or any agency or instrumentality of the United
                  States the obligations of which are explicitly backed by the
                  full faith and credit of the United States; provided that
                  obligations of, or guaranteed by, the Federal Home Loan
                  Mortgage Corporation, the Federal National Mortgage
                  Association or the Federal Farm Credit System shall be
                  Permitted Investments only if, at the time and during the
                  course of investment, such entity has a credit rating at the
                  time of acquisition of at least P-1 or Aaa by Moody's or A-1+
                  or AAA by S&P;

         (ii)     demand and time deposits in, certificates of deposit of, or
                  bankers' acceptances issued by, any depository institution or
                  trust company (including the Trustee or any agent of the
                  Trustee acting in their respective commercial capacities)
                  incorporated under the laws of the United States or any State
                  thereof and subject to supervision and examination by Federal
                  or State banking authorities so long as the commercial paper
                  or the short-term debt obligations of such depository
                  institution or trust company, at the time and during the
                  course of such investment or contractual commitment providing
                  for such investment, have a credit rating at the time of
                  acquisition of at least P-1 or Aaa by Moody's or A-l+ or AAA
                  by S&P (or, in the case of a depository institution which is
                  the principal subsidiary of a holding company, the commercial
                  paper or other short-term debt obligations of such holding
                  company have a credit rating at the time of acquisition of at
                  least P-1 or Aaa by Moody's or A-1+ or AAA by S&P);

         (iii)    commercial paper having a maturity of not more than 180 days
                  and having, at the time and during the course of such
                  investment, a credit rating at the time of acquisition of at
                  least P-1 by Moody's or A-1+ by S&P;

         (iv)     repurchase agreements with respect to (A) any security
                  described in clause (i) above or (B) any other security issued
                  or guaranteed by an agency or instrumentality of the United
                  States with an entity having a credit rating at the time of
                  acquisition of at least P-1 or Aaa by Moody's or A-1+ or AAA

                                       8
<PAGE>   15
                  by S&P. Copies of any repurchase agreement entered into by the
                  Trustee on behalf of the Trust shall be delivered to the
                  Rating Agencies; and

         (v)      money market funds having a credit rating at the time of
                  acquisition of at least Aaa by Moody's or AAA by S&P,
                  including any funds for which the Trustee or any of its
                  Affiliates serves as an investment advisor, administrator,
                  shareholder servicing agent, custodian or subcustodian, in
                  each case the sole assets of which consist of U.S. Treasury
                  securities.

In no event shall a Permitted Investment at any time constitute (x) a swap
agreement, as defined in the United States Bankruptcy Code, 11 U.S.C. Section
101 et seq., (y) an interest-only or principal-only security or (z) a liability
of the Trust in excess of the principal amount invested by the Trustee.
Permitted Investments shall include, without limitation, any investments with
respect to which the Trustee or an Affiliate of the Trustee provides services.

         "Person". Any individual, corporation, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.

         "Predecessor Certificate". With respect to any particular Certificate,
each previous Certificate evidencing all or a portion of the same interest as
that evidenced by such Certificate; provided that, for purposes of this
definition, any Certificate authenticated and delivered under Section 5.05 in
lieu of a lost, destroyed or stolen Certificate shall be deemed to evidence the
same interest as such lost, destroyed or stolen Certificate.

         "Principal Balance". With respect to a Certificate that is Outstanding,
as determined at any time, the maximum amount that the holder thereof is
entitled to receive as distributions allocable to principal payments on the
Securities.

         "Proceeding". Any suit in equity, action at law or other judicial or
administrative proceeding.

         "Rating Agencies". As specified in the Terms Schedule.

         "Rating Agency Condition". Any condition the occurrence of which would
cause the Rating Agencies to reduce or withdraw the then current rating of the
Certificates.

         "Record Date". As specified in the Terms Schedule.

         "Registered Certificate". Any Certificate in registered form the
ownership of which is evidenced by the Certificate Register.

         "Reporting Issuer". Either an Eligible Issuer or a domestic
corporation, limited partnership, trust, limited liability company or other
domestic organization, domestic

                                       9
<PAGE>   16
banking organization or domestic insurance company which is subject to the
information requirements of the Exchange Act and which, in accordance therewith,
files reports and other information with the Securities and Exchange Commission
(or another applicable agency pursuant to Section 12(i) of the Exchange Act).
For all purposes under the Trust Agreement, a Person which is fully guaranteed
by a guarantor that is a Reporting Issuer shall be considered a Reporting
Issuer.

         "Responsible Officer". With respect to the Trustee, any officer within
its Corporate Trust Office, including any Vice President, Assistant Vice
President, Secretary, Assistant Secretary and (i) any other officer of the
Trustee customarily performing functions similar to those performed by any of
the aforementioned officers and (ii) any other officer of the Trustee to whom a
particular matter is referred because of such officer's knowledge of and
familiarity with the particular subject. The foregoing definition shall apply
mutatis mutandis with respect to the Certificate Registrar.

         "Retained Interest". With respect to any Security or other Trust
Property, any ownership interest therein and any right to a portion of the
payments thereon, as specified in the Terms Schedule, held by a Person other
than a Certificateholder, as specified in the Terms Schedule.

         "S&P". Standard & Poor's, a division of the McGraw-Hill Companies Inc.,
including any successor rating agency.

         "Scheduled Final Distribution Date". As specified in the Terms
Schedule.

         "Securities". As specified in the Terms Schedule. In the event that the
Depositor transfers more than one series (or more than one class of the same
series) of Securities to the Trust, "Securities" shall mean each such series or
class specified in the Terms Schedule.

         "Securities Act". The Securities Act of 1933, as amended.

         "Security Accrual Period". The Initial Security Accrual Period and each
period from and including a Security Payment Date to but excluding the next
succeeding Security Payment Date.

         "Security Default". Unless otherwise specified in the Terms Schedule,
(i) the acceleration of the maturity of the Securities under the Securities or
the Security Issuance Agreement whether by declaration of the holders thereof or
the Security Trustee or otherwise, (ii) the failure to pay an installment of
principal of, or any amount of interest due on, the Securities on the due date,
after the expiration of any applicable cure period, (iii) the occurrence of any
event of default relating to bankruptcy or insolvency of the Security Issuer
under the Securities or the Security Issuance Agreement or (iv) the occurrence
of a waiver, deferral, restructuring, rescheduling, exchange or other adjustment
with respect to the Security such that the Swap Counterparty reasonably
determines that (A) the economic terms of the Security are materially different
or (B) the

                                       10
<PAGE>   17
Security represents materially greater credit or other risks. In the case of
clauses (i) and (ii) of the preceding sentence, a Security Default shall be
deemed to have occurred for all purposes of the Trust Agreement notwithstanding
any rescission or annulment of any such acceleration or any subsequent payment
(after the default and after any applicable grace period) of such overdue
principal or interest.

         "Security Issuance Agreement". The indenture, fiscal agency agreement
or other agreement under which the Securities were issued.

         "Security Issuer". As specified in the Terms Schedule. In the event
that the Depositor transfers more than one series (or more than one class of the
same series) of Securities to the Trust, "Security Issuer" shall mean the issuer
of each such series or class specified in the Terms Schedule.

         "Security Payment Date". As specified in the Terms Schedule.

         "Security Rate". As specified in the Terms Schedule.

         "Security Trustee". As specified in the Terms Schedule.

         "Selling Agent". Unless otherwise specified in the Terms Schedule,
Goldman Sachs or any Affiliate of Goldman Sachs designated by it.

         "Series". All of the Certificates issued by the Trust.

         "Special Depositor Wind-up Event". As defined in Section 9.01(f).

         "Specified Currency". Unless otherwise specified in the Terms Schedule,
Dollars.

         "Standard Terms". As defined in the preamble hereto.

         "State". Any one of the 50 states of the United States or the District
of Columbia.

         "Swap Agreement". The ISDA Master Agreement (including the Schedule
thereto, the Confirmation or Confirmations thereunder and any Credit Support
Annex forming a part thereof), if any, to which the Trust is a party, as
specified in the Terms Schedule. In the event that the Trust enters into more
than one ISDA Master Agreement, "Swap Agreement" shall mean each such ISDA
Master Agreement specified in the Terms Schedule.

         "Swap Amount". With respect to each Swap Payment Date, an amount,
payable by, or on behalf of, the Swap Counterparty, equal to the accrued
interest or other payment obligation calculated with reference to the Swap
Notional Amount for the immediately preceding Swap Rate Accrual Period at the
Swap Rate.

                                       11
<PAGE>   18

         "Swap Calculation Agent". The "Calculation Agent" as defined in the
Swap Agreement.

         "Swap Counterparty". Goldman Sachs, unless another Person is identified
in the Terms Schedule as the counterparty of the Trust under the Swap Agreement,
including any successors and permitted assignees. In the event that the Trust
enters into more than one Swap Agreement, "Swap Counterparty" shall mean each
counterparty of the Trust specified in the Terms Schedule.

         "Swap Default". Any "Event of Default" as defined in the Swap
Agreement.

         "Swap Guarantee". The guarantee (if any) specified in the Terms
Schedule of the obligations of the Swap Counterparty under the Swap Agreement.

         "Swap Guarantor". The guarantor (if any) who issues, and is specified
in, the Swap Guarantee, including any successors and permitted assigns.

         "Swap Notional Amount". As specified in the Terms Schedule.

         "Swap Payment Date". As specified in the Terms Schedule.

         "Swap Rate". As specified in the Terms Schedule.

         "Swap Rate Accrual Period". The Initial Swap Rate Accrual Period and
each period from and including a Swap Payment Date to but excluding the next
succeeding Swap Payment Date.

         "Swap Termination Event". Any "Termination Event" as defined in the
Swap Agreement.

         "Swap Termination Payment". Any amounts payable under the Swap
Agreement in accordance with its terms, whether to or by the Trust, as the case
may be, as a result of an early termination of one or more Swap Transactions.

         "Swap Transaction". Any "Transaction" as defined in the Swap Agreement.

         "Terms Schedule". The schedule or schedules (which may be in the form
of "Schedule I - Trust Property and Certificates", "Schedule II - Trust
Property" and "Schedule III - Swap Agreement", attached to Exhibit A hereto)
which contains information with respect to the terms of the Certificates, as
well as the Securities, the Swap Agreement and any other Trust Property.

         "TIA". The Trust Indenture Act of 1939, as amended.

         "Trigger Amount". As specified in the Terms Schedule.

         "Trust". The trust created by the Trust Agreement.

                                       12
<PAGE>   19
         "Trust Agreement". As defined in the preamble hereto.

         "Trust Property". As defined in Section 3.01(a).

         "Trust Terms Agreement". As defined in the preamble hereto.

         "Trust Wind-Up Event". As defined in Section 9.01.

         "Trustee". As defined in the preamble hereto, including any successor
trustee or co-trustee appointed in accordance with the Trust Agreement.

         "Trustee Fee Letter". A letter agreement between the Trustee and the
Depositor dated on or before the Closing Date setting forth the fees and
expenses of the Trust and the Trustee which are subject to reimbursement by the
Depositor.

         "Trustee Fees". The amount or amounts set forth in the Trustee Fee
Letter.

         "UCC". The Uniform Commercial Code as in effect from time to time in
the relevant jurisdiction or, with respect to the State of Louisiana, the
equivalent body of statutory and common law.

         "Underwriter". Each Person acting as underwriter, dealer, placement
agent or in any similar capacity in connection with the distribution of the
Certificates.

         "Underwriting Agreement". The agreement between the Underwriter or
Underwriters and the Depositor relating to the distribution of the Certificates.

         "United States" or "U.S.". The United States of America (including the
several States and the District of Columbia), its territories, its possessions
and other areas subject to its jurisdiction.

         "U.S. Person". A citizen or resident of the United States, a
corporation, partnership or other entity created or organized in or under the
laws of the United States or any political subdivision thereof, an estate the
income of which is subject to U.S. federal income taxation regardless of its
source or a trust if (i) a U.S. court is able to exercise primary supervision
over the trust's administration and (ii) one or more U.S. persons have the
authority to control all of the trust's substantial decisions.

         Certain additional defined terms have the meanings assigned thereto in
other provisions hereof.

         SECTION 1.02. Rules of Construction

         Unless the context otherwise requires:

                  (i)      a term has the meaning assigned to it;

                                       13
<PAGE>   20
                  (ii)     an accounting term not otherwise defined has the
         meaning assigned to it in accordance with generally accepted accounting
         principles applicable in the United States from time to time;

                  (iii)    "or" is not exclusive;

                  (iv)     the words "herein", "hereof", "hereunder" and other
         words of similar import refer to the Trust Agreement as a whole and not
         to any particular Article, section or other subdivision thereof;

                  (v)      "including" means including without limitation; and

                  (vi)     words in the singular include the plural and words in
         the plural include the singular.

         SECTION 1.03. Article and Section References.

         All Article and Section references used in these Standard Terms, unless
otherwise provided, are to Articles and Sections of these Standard Terms. Any
reference to "this Section" appearing within a particular paragraph of a Section
is a reference to such Section as a whole.

         SECTION 1.04. References to Credit Support, Swap Agreement and Call
Right

         If the Terms Schedule does not specify any Credit Support or Swap
Agreement, all references herein to the "Credit Support" or the "Swap
Agreement", as the case may be, including in each case all related terms and
provisions, shall be deemed to be deleted. In the case of any Series that is not
designated as a "Callable Series" in the Terms Schedule, all references herein
to the "Call Right", including all related terms and provisions, shall be deemed
to be deleted.

                                   ARTICLE II

                Declaration of Trust; Entry into Swap Agreement;
                            Issuance of Certificates

         SECTION 2.01. Creation and Declaration of Trust; Assignment of
Securities

         (a) The Depositor, concurrently with the execution and delivery of the
Trust Agreement, shall transfer to the Trustee, on behalf and for the benefit of
the Certificateholders and without recourse, all the right, title and interest
of the Depositor, in, to and under (i) the Securities, (ii) the Certificate
Account, including all income from the investment of funds on deposit therein,
(iii) all payments on or under and all proceeds of any of the foregoing
(including all proceeds of the conversion thereof, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
insurance

                                       14
<PAGE>   21
proceeds, condemnation awards, causes of action, rights to payment of any and
every kind and other forms of obligations, receivables, instruments and other
property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing) and (iv) all other assets included or to be
included in the Trust Property, in each case of clauses (i) through (iv) except
for any Retained Interest. The transfer of the Securities in accordance with the
immediately preceding sentence shall include all rights, powers and options of
the Depositor thereunder, including the first priority and continuing right to
claim for, collect, receive and give receipt for principal, premium, if any, and
interest payments in respect of the Securities and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings and generally to do and receive anything that the Depositor is or
may be entitled to do or receive thereunder or with respect thereto.

         (b) In connection with the transfer of the Securities referred to in
paragraph (a) above, the Depositor shall, not later than the Closing Date, (i)
deposit the Securities with the Trustee by physical delivery of such Securities,
duly endorsed, to the Trustee or cause the Securities to be registered by
book-entry in the name of the Trustee (provided that the book-entry depositary
shall be an agency of the United States, DTC or another book-entry institution
acceptable to the Depositor) and (ii) deliver or cause to be delivered to the
Trustee all documents necessary to transfer the Securities to the Trustee.

         SECTION 2.02. Swap Agreement, Swap Guarantee and Underwriting Agreement

         Concurrently with the execution of the Trust Agreement, (i) the Trust
shall (A) execute and deliver the Swap Agreement and (B) accept any Swap
Guarantee and (ii) the Depositor shall enter into the Underwriting Agreement
with the Underwriter or Underwriters. It shall be a condition to the
effectiveness of the Trust Agreement that the Swap Agreement be effective as of
the date of the Trust Agreement. The Trustee shall, on behalf of the Trust,
perform the obligations of the Trust under the Swap Agreement in accordance with
its terms and shall make demands under any Swap Guarantee immediately upon
obtaining notice of any payment default by the Swap Counterparty under the Swap
Agreement. The Trustee and the Depositor agree, and each Certificateholder by
acquiring Certificates shall be deemed to agree, that the Swap Agreement does
not represent an ownership interest in the Trust or its assets and that none of
them shall treat the Swap Agreement as an ownership interest in the Trust for
any purpose. Except as expressly set forth in the Trust Agreement and in the
Swap Agreement, the receipt by the Trustee of the Securities and the execution
by the Trustee of the Swap Agreement shall not constitute, and is not intended
to result in, an assumption by the Trustee or any Certificateholder of any
obligation of the Security Issuer or the Swap Counterparty or any other Person
in connection with the Securities or the Swap Agreement or under any agreements
or instruments relating to any of them.

                                       15
<PAGE>   22
         SECTION 2.03. Acceptance by Trustee

         The Trustee shall acknowledge receipt by it of (i) the Securities and
the related documents referred to in Section 2.01, (ii) the Swap Agreement, (ii)
any Swap Guarantee and (iv) the documents specified in the Swap Agreement (in
Part 3 of the Schedule to the ISDA Master Agreement), and declare that it will
hold such assets and all other assets comprising the Trust Property in trust,
for the exclusive use and benefit of all present and future Certificateholders
and for the purposes and subject to the terms and conditions set forth in the
Trust Agreement.

         SECTION 2.04. Sale

         The parties agree and intend that the transfer of Securities, the Swap
Agreement and all proceeds of any of the foregoing pursuant to this Article II
shall be treated as a sale and purchase by the Trust and not a loan or a pledge
to secure a loan. If for any reason and for any purpose whatsoever such transfer
is deemed to be a loan or a pledge to secure a loan, the parties intend that the
Trust Agreement shall be a security agreement pursuant to which there shall be
deemed to have been granted by the Depositor to the Trustee, for the benefit of
the Certificateholders, a security interest in all of the Depositor's right,
title and interest in the Securities, the Swap Agreement and all proceeds of any
of the foregoing, subject to a prior security interest in favor of the Swap
Counterparty pursuant to the Swap Agreement and to any obligation of the Trust
to pay Extraordinary Trust Expenses pursuant to Section 10.05(c). If the Trust
terminates prior to the satisfaction of the claims of any Certificateholder
under any Certificate, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent
for the benefit of such Certificateholder, subject to the prior security
interest of the Swap Counterparty under the Swap Agreement and to any obligation
of the Trust to pay Extraordinary Trust Expenses pursuant to Section 10.05(c).

         SECTION 2.05. Representations and Warranties of the Depositor

         (a) The Depositor represents and warrants to the Trustee that, as of
the Closing Date or as of such other date specified in the Trust Agreement:

                  (i) the Depositor is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Delaware;

                  (ii) to the Depositor's knowledge after due inquiry, the
         Depositor has full power and authority to enter into and consummate all
         transactions contemplated by the Trust Agreement, has duly authorized
         the execution, delivery and performance of the Trust Agreement and has
         duly executed and delivered the Trust Agreement. The Trust Agreement,
         upon its execution and delivery thereof by the Depositor and assuming
         the due authorization, execution and delivery thereof by the Trustee,
         will constitute a valid, legal and binding obligation of the Depositor,
         enforceable against it in accordance with the terms thereof, subject to

                                       16
<PAGE>   23
         bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
         or similar laws of general applicability relating to or affecting
         creditors' rights and to general equity principles;

                  (iii) the execution and delivery of the Trust Agreement by the
         Depositor and its performance of and compliance with the terms thereof
         will not violate the Depositor's certificate of incorporation or
         by-laws or constitute a default (or an event which, with notice or
         lapse of time, or both, would constitute a default) under, or result in
         the breach or acceleration of, any material contract, agreement or
         other instrument to which the Depositor is a party or by which the
         Depositor is bound or to which the Depositor or any of its assets is
         subject;

                  (iv) to the Depositor's knowledge after due inquiry, the
         Depositor is not in violation, and the execution and delivery of the
         Trust Agreement by the Depositor and its performance and compliance
         with the terms thereof will not constitute a violation, of any order or
         decree of any court or any order or regulation of any Federal, State,
         municipal or governmental agency having jurisdiction over the Depositor
         or its properties, which violation would reasonably be expected to have
         a material and adverse effect on the duties and obligations of the
         Depositor under the Trust Agreement; and

                  (v) to the Depositor's knowledge after due inquiry, there are
         no liens or encumbrances on the Securities immediately prior to the
         time of transfer, except those created by the Trust Agreement.

         It is understood and agreed that the representations and warranties of
the Depositor in this paragraph (a) shall survive delivery of the respective
documents to the Trustee and shall inure to the benefit of the Trustee on behalf
of the Certificateholders notwithstanding any restrictive or qualified
endorsement or assignment.

         (b) Upon discovery or receipt of notice by the Depositor that any
representations and warranties of the Depositor in paragraph (a) above is
inaccurate in any material respect, the Depositor shall (i) promptly notify the
Trustee thereof and (ii) if such inaccuracy, or the facts or circumstances to
which such inaccuracy relates, materially and adversely affects or affect the
rights of the Certificateholders to receive distributions under the Trust
Agreement when due and payable, promptly notify the Rating Agencies thereof. The
Depositor shall take such steps as may be required to ensure that the relevant
representation and warranty becomes accurate in all material respects within two
Business Days from the earlier of discovery or receipt of notice by it of such
inaccuracy.

         SECTION 2.06. Agreement to Execute, Authenticate and Deliver
Certificates

         The Trustee shall, concurrently with the transfer to and receipt by it
of the Securities and any Swap Guarantee and delivery to it by the Depositor of
the executed Trust Agreement and by the Swap Counterparty of the executed Swap
Agreement, and in

                                       17
<PAGE>   24
exchange therefor, cause to be executed, authenticated and delivered to or upon
the order of the Depositor, Certificates duly executed and authenticated by or
on behalf of the Trustee in authorized denominations evidencing ownership of the
entire Trust Property, all in accordance with Section 5.02.

                                  ARTICLE III

               Trust Powers; Administration of the Trust Property

         SECTION 3.01. Trust Property

         (a) The "Trust Property" of the Trust shall consist of: (i) the
Securities and all payments on or collections in respect of the Securities due
after the Cut-off Date; (ii) all Permitted Investments and all funds from time
to time on deposit in the Certificate Account; (iii) all the right, title and
interest of the Trustee in, to and under the Credit Support; (iv) all the right,
title and interest of the Trustee in, to and under the Swap Agreement and any
Swap Guarantee; and (v) any other asset described in the Terms Schedule as
constituting a portion of the Trust Property, in each case of clauses (i)
through (v) exclusive of any Retained Interest.

         (b) The Trust Property of the Trust shall not constitute trust property
of any other Trust. The holders of all Certificates together shall have an equal
and ratable undivided ownership interest in the Trust Property; provided that
the Terms Schedule may specify that certain assets constituting a part of the
Trust Property may be beneficially owned solely by or deposited solely for the
benefit of one Class or a group of Classes within the Series. In such event, the
other Classes of the Series shall not possess any beneficial ownership interest
in those specified assets constituting a part of the Trust Property.

         SECTION 3.02. Administration of the Trust

         (a) The Trustee shall administer the Trust Property for the benefit of
the Certificateholders. The duties of the Trustee shall be performed in
accordance with applicable local, State and Federal law.

         (b) Subject to Article X, the Trustee is authorized to perform, and
from time to time hereafter shall perform, only those acts which are described
in the Trust Agreement as obligations of the Trustee. Notwithstanding the
generality of the foregoing, the Trustee is hereby specifically authorized and
directed to do the following on behalf of the Trust: (i) accept delivery of the
Securities; (ii) accept, or execute and deliver, as applicable, any
documentation relating to the Credit Support; (iii) execute and deliver any
documentation relating to the Call Right, (iv) execute and deliver, and perform
its obligations and exercise its rights under, the Swap Agreement; (v) accept,
and exercise its rights under, any Swap Guarantee; (vi) issue Certificate
Documents and establish and maintain the Certificate Account; (vii) pledge the
assets of the Trust (including the Securities) to secure obligations of the
Trust, including obligations under

                                       18
<PAGE>   25
the Swap Agreement; (viii) sell Securities through the Selling Agent in
accordance with Section 9.03; (ix) make Permitted Investments pursuant to
Section 3.05; and (x) liquidate the Trust pursuant to Article IX and make
distributions pursuant to Article IV.

         (c) Notwithstanding anything to the contrary herein, the Trust shall
not engage in any business or activities other than receiving and holding the
Securities and any Credit Support or other Trust Property, accepting, or
executing and delivering, any documentation relating to the Credit Support,
executing and delivering any documentation relating to the Call Right, entering
into the Swap Agreement, accepting the benefits of, and making demands and
exercising its rights, under any Swap Guarantee, issuing Certificate Documents,
making Permitted Investments in accordance with Section 3.05 and engaging in any
business activities related or incidental to the foregoing. In no event shall
the Trust engage in any business or activity which would cause it to be or
become an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of
the Investment Company Act, or to be or become a closed-end investment company
required to be registered, but not so registered, under the Investment Company
Act.

         (d) The Trustee shall not transfer, assign, pledge, sale, or otherwise
dispose of, the Securities, the Swap Agreement, any Swap Guarantee, the Credit
Support or other Trust Property, or any interest therein, to any Person or
Persons, except (i) to a successor trustee in accordance with Section 10.08,
(ii) through the Selling Agent in accordance with Section 9.03, (iii) in
accordance with Section 10.02(a)(x), (iv) as required under the Swap Agreement
or (v) as otherwise expressly permitted hereunder. This paragraph (d) shall not
be construed to prohibit transfers of the Certificates.

         (e) The Trustee shall have the legal power to exercise all of the
rights, powers and privileges of holders of the Securities, subject to the other
provisions of this Section 3.02, Article X and the other provisions hereof.
Except as specifically provided in Section 8.01 or elsewhere in the Trust
Agreement or in the TIA, neither the Trustee nor the Depositor shall be under
any obligation whatsoever to appear in, prosecute or defend any Proceeding in
respect of the Securities.

         (f) Except for actions expressly authorized by the Trust Agreement, the
Trustee shall not take any actions that are reasonably likely to (nor fail to
take any actions, if such failure would be reasonably likely to) (i) impair the
interests of the Trust in the Securities, the Swap Agreement, any Swap
Guarantee, the Credit Support, or any other Trust Property, (ii) impair the
value of the Securities, the Credit Support, the Swap Agreement, any Swap
Guarantee or any other Trust Property, (iii) alter the classification of the
Trust for U.S. federal income tax purposes or (iv) impair the Trust's ability to
rely upon Rule 3a-7 under the Investment Company Act for exemption from status
as an investment company thereunder.

         (g) Except as expressly provided in the Trust Agreement, the Trustee
shall have no power to vary the corpus of the Trust Property, whether by (i)
accepting any

                                       19
<PAGE>   26
substitute obligation or asset for any Security or any Credit Support (except in
connection with any exchange of, or substitution for, any Securities approved in
accordance with Section 7.01(c)), (ii) entering into any amendment or
modification of the Securities or the Swap Agreement, (iii) accepting any
substitute guarantee for any Swap Guarantee, (iv) adding any other investment,
obligation or security to the Trust Property, (v) withdrawing from the Trust
Property any Securities or Credit Support, (vi) terminating the Swap Agreement
other than in accordance with its terms or (vii) rejecting or otherwise failing
to accept the continuing benefits of any Swap Guarantee.

         SECTION 3.03. Collection of Certain Payments

         The Trustee shall make reasonable efforts to collect all payments
required to be made pursuant to the terms of the Securities in a manner
consistent with the terms of the Trust Agreement, the Securities, the Swap
Agreement and any Swap Guarantee, as applicable. In engaging in such activities,
the Trustee shall follow or cause to be followed collection procedures in
accordance with the terms of the Trust Agreement, the Securities, the Swap
Agreement and any Swap Guarantee, as applicable.

         SECTION 3.04. Certificate Account

         (a) The Trustee shall establish and maintain one or more Eligible
Accounts (collectively, the "Certificate Account"), held in trust for the
benefit of the Certificateholders, subject to the prior security interest of the
Swap Counterparty under the Swap Agreement and to any obligation of the Trust to
pay Extraordinary Trust Expenses pursuant to Section 10.05(c). The Trustee, on
behalf of the Certificateholders, shall possess all right, title and interest in
all funds from time to time on deposit in the Certificate Account and in all
proceeds thereof, subject to the prior security interest of the Swap
Counterparty pursuant to the Swap Agreement and to any obligation of the Trust
to pay Extraordinary Trust Expenses pursuant to Section 10.05(c). The
Certificate Account shall be under the sole dominion and control of the Trustee.
The Trustee shall deposit or cause to be deposited in the Certificate Account
all amounts collected with respect to the Securities, the Swap Agreement and any
Swap Guarantee, including:

                  (i) all payments received by the Trustee on account of
         principal of the Securities;

                  (ii) all payments received by the Trustee on account of
         interest (if any) on the Securities;

                  (iii) all payments received by the Trustee on account of
         premium (if any) on the Securities;

                  (iv) all payments received by the Trustee in connection with
         the consummation of any exchange of, substitution or tender for, or
         consent solicitation relating to, any Securities approved in accordance
         with Section 7.01(c);

                                       20
<PAGE>   27
                  (v) all payments received by the Trustee on account of the
         Credit Support;

                  (vi) all Swap Amounts and all other payments (if any) received
         by the Trustee on account of the Swap Agreement;

                  (vii) all payments received by the Trustee on account of any
         Swap Guarantee;

                  (viii) the Principal Balance, if applicable;

                  (ix) all payments in the nature of prepayment or redemption
         penalties, late payment charges or assumption fees which may be
         received by the Trustee;

                  (x) all payments held in trust pursuant to the second sentence
         of Section 11.01(c); and

                  (xi) any portion of the net proceeds of any sale made pursuant
         to Section 5.13(b) not paid to a Certificateholder pursuant to such
         Section.

         (b) If at any time a formerly Eligible Account constituting a part of
the Certificate Account no longer satisfies the requirements for Eligible
Accounts, the Trustee shall, no later than the fifth Business Day after the day
of such occurrence or prior to the next succeeding Distribution Date, whichever
occurs earlier, establish a new Account meeting such requirements and transfer
any cash and investments on deposit in the formerly Eligible Account to such new
Eligible Account, and from the date of such transfer, such new Eligible Account
shall constitute a part of the Certificate Account for all purposes of the Trust
Agreement.

         (c) The Trustee shall give notice to the Depositor and the Rating
Agencies of the location of each Eligible Account constituting a part of the
Certificate Account.

         SECTION 3.05. Investment of Funds in the Accounts

         The Depositor, on behalf of the Trust, shall direct in writing the
Trustee or any depositary institution maintaining any Eligible Account
constituting a part of the Certificate Account to invest the funds on deposit
therein in one or more Permitted Investments bearing interest or sold at a
discount, which shall be held to maturity unless payable on demand. If the
Depositor does not provide any investment directions to the Trustee, then the
Trustee shall invest, or cause to be invested, all funds from time to time on
deposit in the Certificate Account in Permitted Investments of a type specified
in clause (i) or (v) of the definition thereof upon receipt of such funds;
provided that such Permitted Investments shall mature at least one calendar day
prior to the next Distribution Date.

                                       21
<PAGE>   28
         SECTION 3.06. Retained Interest

         The Retained Interest, if any, in any Security or other Trust Property
shall initially be held by the Person specified in the Terms Schedule. Unless
otherwise specified in the Terms Schedule, a portion corresponding to the
Retained Interest, if any, with respect to any Security or other Trust Property
(i) shall be deducted by the Trustee from applicable collections in respect of
such Security or other Trust Property, (ii) shall not be deposited in the
Certificate Account, (iii) shall not constitute a part of the Trust and (iv)
shall be distributed to the holder of such Retained Interest.

         SECTION 3.07. Access to Certain Documentation

         The Trustee shall provide to any Federal, State or local regulatory
authority with jurisdiction over the Depositor, the Swap Counterparty, the Swap
Guarantor or any Certificateholder access to the documentation regarding the
Securities, the Swap Agreement and any Swap Guarantee required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Trustee designated by it. In addition, access to the documentation regarding the
Securities, the Swap Agreement and any Swap Guarantee shall be provided to the
Depositor, the Swap Counterparty, the Swap Guarantor or any Certificateholder
upon reasonable request during normal business hours at the offices of the
Trustee designated by it, at the expense of the Person requesting such access.

                                   ARTICLE IV

                Distributions to Certificateholders and Reporting

         SECTION 4.01. Distributions

         On each Distribution Date for the Certificates (including the Scheduled
Final Distribution Date), the Trustee shall distribute to each Certificateholder
the pro rata portion of the Available Funds as of such date that is allocable to
such Certificateholder.

         SECTION 4.02. Reports to Certificateholders

         (a) On each Distribution Date, the Trustee shall provide or cause to be
provided to the Depositor and each Certificateholder a statement setting forth:

                  (i) the amounts distributed on such Distribution Date to
         Certificateholders in respect of, respectively, principal of or
         interest or premium, if any, on the Certificates;

                  (ii) the applicable Interest Rate;

                                       22
<PAGE>   29
                  (iii) the aggregate stated principal amount of the Securities
         as of such Distribution Date and, to the extent that such information
         has been provided to the Trustee, the interest rate applicable to the
         Securities for the immediately following Security Accrual Period;

                  (iv) the amounts received by the Trustee in respect of the
         Securities during the immediately preceding Security Accrual Period;

                  (v) any change in the available amount of each element of
         Credit Support;

                  (vi) the amounts and the recipients of any payments under the
         Swap Agreement during the immediately preceding Swap Rate Accrual
         Period;

                  (vii) if feasible, the new Swap Rate applicable to the
         immediately following Swap Rate Accrual Period;

                  (viii) the aggregate Principal Balance (or Notional Amount, if
         applicable) at the close of business on the Business Day immediately
         preceding such Distribution Date;

                  (ix) the current ratings of the Certificates and the
         Securities, respectively, and the names of the Rating Agencies that
         assigned such ratings, all to the extent that such information has been
         provided to the Trustee by the Depositor;

                  (x) the cumulative amount of Extraordinary Trust Expenses, if
         any, as of such Distribution Date; and

                  (xi) any additional information relevant to the
         Certificateholders, as specified in the Terms Schedule.

In the case of information furnished pursuant to clause (i) above, each amount
shall be expressed as a Dollar amount (or the equivalent thereof in any other
Specified Currency) per minimum denomination of Certificates or for any other
specified portion thereof. Within a reasonable period of time after the end of
each calendar year, the Trustee shall furnish to each Person who at any time
during such year was a Certificateholder a statement containing the information
set forth in clause (i) above, aggregated for such year or the applicable
portion thereof during which such Person was a Certificateholder, which
statement shall contain sufficient information to enable each Certificateholder
to calculate its U.S. Federal income tax liability with respect to the
Certificates. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information has been
provided by the Trustee in accordance with any applicable requirements of the
Code.

         (b) At any time when the Trust (or the Depositor on behalf of the
Trust) is not subject to Section 13 or 15(d) of the Exchange Act, upon receiving
a request by a Certificateholder, or a prospective purchaser from a
Certificateholder, for the information

                                       23
<PAGE>   30
required pursuant to Rule 144A(d)(4)(i) under the Securities Act, the Trustee
shall promptly notify the Depositor of such request, and the Depositor shall
promptly thereafter provide such information to the Trustee, and the Trustee
shall forward such information to such Certificateholder or prospective
purchaser, as the case may be; provided that, for purposes of this paragraph
(b), the information required by Rule 144A(d)(4)(i) shall be as interpreted in
Release No. 33-6862, Part D.

         (c) The Trustee shall furnish to Certificateholders, as promptly as
possible, copies of any and all notices and communications that it receives from
the Security Issuer, including notice of any call of Securities by the Security
Issuer. The Trustee shall also notify the Certificateholders of any call of
Securities by the Swap Counterparty in accordance with the Swap Agreement.

         (d) If so specified in the Terms Schedule, the Trustee shall use
reasonable efforts to cause a firm of independent public accountants to furnish
to the Trustee, commencing on a date specified in the Terms Schedule and on or
before each anniversary of such date, a statement to the effect that such firm
has examined certain documents and records relating to the administration of the
Trust Property during the immediately preceding 12-month period (or, in the case
of the first such report, the period ending on or before the date specified in
the Terms Schedule, which date shall not be more than one year after the related
Closing Date) and that, on the basis of certain agreed upon procedures
considered appropriate under the circumstances, such firm is of the opinion that
such administration was conducted in compliance with the terms of the Trust
Agreement, except for such exceptions as such firm believes to be immaterial and
such other exceptions and qualifications as shall be set forth in such report.

         If so specified in the Terms Schedule, the Trustee shall furnish to the
Depositor, upon written request by the Depositor, on or before a specified date
in each year, an annual statement signed by one or more Responsible Officers of
the Trustee to the effect that the Trustee has fulfilled its obligations under
the Trust Agreement during the immediately preceding 12-month period with
respect to the Certificates.

         Copies of the annual accountants' statement and the statement of
officers of the Trustee, in each case if applicable, may be obtained by
Certificateholders without charge upon written request to the Trustee.

         (e) Promptly upon receiving any notice of the exercise of the Call
Right, if any, with respect to the Certificates by a Person entitled to exercise
the Call Right, the Trustee shall provide notice thereof as specified in the
Terms Schedule.

         (f) The Trustee shall transmit to Certificateholders such reports
concerning the Trustee and its actions under the Trust Agreement as may be
required pursuant to the TIA at the times and in the manner provided therein. A
copy of any such report shall, at the time of such transmission to
Certificateholders, be filed by the Trustee with each stock exchange on which
the Certificates are then listed, with the Commission and with

                                       24
<PAGE>   31
the Depositor. The Depositor shall notify the Trustee when the Certificates are
listed on any stock exchange.

         SECTION 4.03. Calculation of Interest Rates

         Unless otherwise specified in the Terms Schedule, the Interest Rate
shall be the rate applicable to payments received by the Trust under the
Securities or the Swap Agreement (as determined by the Swap Calculation Agent),
as applicable. If the Terms Schedule specifies a Calculation Agent, such
Calculation Agent shall calculate the Interest Rate applicable to the
Certificates from time to time in the manner specified in the Terms Schedule.
All calculations by the Calculation Agent hereunder shall, in the absence of
manifest error, be conclusive for all purposes and binding on
Certificateholders. Each of the protections, releases, indemnities and other
terms applicable to the Trustee under Sections 10.01, 10.02, 10.03 and 10.05
shall apply, mutatis mutandis, to the Calculation Agent in connection with its
actions as such.

         SECTION 4.04. Compliance with Tax Reporting and Withholding
Requirements

         Unless otherwise specified in the Terms Schedule, the Trustee shall
file or cause to be filed, within the time limits established by law, Federal
and State income tax returns and information statements as a grantor trust for
each of the Trust's taxable years. The Trust's taxable year shall be the
calendar year. Notwithstanding any other provision of the Trust Agreement to the
contrary, the Trustee shall comply with all Federal withholding requirements
regarding distributions to, or receipts of amounts on behalf of,
Certificateholders that the Trustee reasonably believes are applicable under the
Code. The consent of Certificateholders shall not be required for any such
withholding. In the event that the Trustee withholds any amount from interest or
original issue discount distributions to any Certificateholder pursuant to
Federal withholding requirements, the Trustee shall indicate in any statement
required to be provided to such Certificateholder pursuant to Section 4.02(d)
the amount so withheld.

         SECTION 4.05. Preservation of Information, Communications to Holders

         (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Registered Certificateholders
contained in the most recent list furnished to the Trustee and the names and
addresses of Registered Certificateholders received by the Trustee in its
capacity as Certificate Registrar. The Trustee may destroy any list furnished to
it as provided upon receipt of a new list.

         (b) Certificateholders shall have the right to communicate pursuant to
TIA Section 312(b) with other Certificateholders with respect to their rights
under this Agreement or under the Certificates.

                                       25
<PAGE>   32
         (c) Irrespective of whether the TIA shall apply to this Agreement, the
Depositor, the Trustee, the Paying Agent and the Certificate Registrar shall
have the benefit of protections equivalent to those provided by TIA Section
312(c).

                                   ARTICLE V

                                The Certificates

         SECTION 5.01. The Certificates

         (a) The Certificates shall be represented by one or more Certificate
Documents in the denominations specified in the Terms Schedule; provided that,
unless provided otherwise in the Trust Terms Agreement, all Certificates
denominated in Dollars shall be issued in minimum denominations of $1,000 and
integral multiples of $1,000 in excess thereof. No interests in the Trust other
than the Certificates shall be issued, except in accordance with Section 5.05.

         (b) Each Series may be limited to a single class, or, if so specified
in the Terms Schedule, may include two or more Classes differing as to
entitlement to distributions of principal, interest or premium, and one or more
Classes may be subordinated in certain respects to other Classes of the same
Series with respect to the allocation of losses arising from any defaults with
respect to the Trust Property. All Certificates of a particular Class shall be
identical in all respects, except for the denominations thereof.

         (c) Unless otherwise specified in the Terms Schedule, all Certificates
of a particular Series (or, if more than one Class exists within the same
Series, any particular Class within such Series) will, upon issuance, be
represented by one or more Global Certificates that will be deposited with, or
on behalf of, DTC (in the case of Registered Certificates denominated and
payable in Dollars), Euroclear, Clearstream or any other Depositary specified in
the Terms Schedule. Global Certificates may be issued as either Registered
Certificates or Bearer Certificates and in either temporary or permanent form.
Global Certificates representing Registered Certificates shall be registered in
the name of a nominee of the Depositary, and shall clear and settle in
book-entry form only through the facilities of one or more Depositaries.

         SECTION 5.02. Execution, Authentication and Delivery

         (a) The Certificates shall be executed on behalf of the Trust by a
Responsible Officer of the Trustee. The signature of any of these officers may
be manual or in facsimile form. Certificates bearing the manual or facsimile
signature of individuals who were at any time the proper officers of the Trustee
shall be binding, notwithstanding the fact that such individuals or any of them
may have ceased to hold such offices prior to the authentication and delivery of
such Certificates or did not hold such offices at the date of such Certificates.

                                       26
<PAGE>   33
         (b) The Trustee shall not be required to authenticate any Certificates
if the issuance of such Certificates pursuant to the Trust Agreement would
adversely affect the Trustee's own rights, duties or immunities under the Trust
Agreement.

         (c) Each Certificate shall be dated as of the date of its
authentication.

         (d) No Certificate shall be entitled to any benefit under the Trust
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in the form set
forth in Exhibit B hereto, executed manually by one of the Responsible Officers
of the Trustee, except as provided otherwise in Section 5.11(e). Such
certificate of authentication shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered under
the Trust Agreement and is entitled to the benefits of the Trust Agreement.
Notwithstanding the foregoing, if any Certificate has been authenticated and
delivered hereunder but never issued and sold by or on behalf of the Trust, and
such Certificate is delivered by or on behalf of the Trust to the Trustee for
cancellation pursuant to Section 5.08, for all purposes of the Trust Agreement
such Certificate shall be deemed never to have been authenticated and delivered
and shall never be entitled to the benefits of the Trust Agreement.

         SECTION 5.03. Temporary Certificates

         Pending the preparation of definitive Certificates of any Series, the
Trustee shall cause one of its Responsible Officers to execute, authenticate and
deliver temporary Certificates of such Series, substantially in the form of the
definitive Certificate in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as such
Responsible Officer may determine, as evidenced by the execution of such
Certificates by such Responsible Officer.

         If temporary Certificates of any Series are issued, the Trustee shall
cause definitive Certificates of such Series to be prepared without unreasonable
delay. After the preparation of definitive Certificates of such Series, the
temporary Certificates of such Series shall be exchangeable (subject to Section
5.12(b), if applicable) for definitive Certificates of such Series upon
surrender of the temporary Certificates of such Series at the office or agency
of the Trustee for such purpose, without charge to the holder thereof. Upon
surrender for cancellation of any temporary Certificates of any Series, the
Trustee shall cause one of its Responsible Officers to execute, authenticate and
deliver one or more definitive Certificates of such Series of any authorized
denomination or denominations of like tenor and aggregate Principal Balance (or
Notional Amount, as applicable). Until so exchanged, the temporary Certificates
of any Series shall in all respects be entitled to the same benefits under the
Trust Agreement as definitive Securities of such Series.

                                       27
<PAGE>   34
         SECTION 5.04. Registration; Registration of Transfer and Exchange

         (a) The Trustee shall cause to be kept at its Corporate Trust office a
register for Registered Certificates (the registers maintained in such office
and in any other office or agency of the Trustee from which distributions are
made are collectively referred to as the "Certificate Register") in which,
subject to such reasonable regulations as it may prescribe, a transfer agent and
registrar (which may be the Trustee) (the "Certificate Registrar") shall provide
for the registration of Registered Certificates and of transfers and exchanges
thereof. The Trustee shall have the right to rely upon a certificate executed on
behalf of the Certificate Registrar by one or more of its Responsible Officers
as to the names and addresses of the holders of Registered Certificates and the
Principal Balance (or Notional Amount, as applicable) thereof held by each such
holder.

         The Trustee is initially appointed as Certificate Registrar for
purposes of registering Registered Certificates and transfers and exchanges
thereof as herein provided and shall remain Certificate Registrar for such
purposes until the earliest to occur of (i) the appointment by the Depositor of
a different Certificate Registrar, (ii) the resignation or termination of the
Trustee and appointment of a successor trustee in accordance with Section 10.08,
in which case such successor trustee shall be deemed to be appointed as
Certificate Registrar and (iii) the termination of the Trust and discharge of
the Trustee's obligations under the Trust Agreement in accordance with the
applicable terms of Articles IX and XI; provided, however, that the Trustee may
appoint one or more co-Certificate Registrars. Upon the resignation of any
Certificate Registrar appointed by the Depositor pursuant to clause (i) of the
immediately preceding sentence, the Trustee shall promptly assume the duties of
Certificate Registrar. Upon (i) the appointment by the Depositor of a Person
other than the Trustee as Certificate Registrar, (ii) the appointment of any
co-Certificate Registrar or (iii) any change in the identity of the Certificate
Registrar or any co-Certificate Registrar, the Depositor shall, within three
Business Days from such occurrence, give notice thereof to each of the Trustee
and the Rating Agencies, which notice shall also specify the location, and any
change in the location, of the Certificate Register.

         (b) Upon surrender for registration of transfer of any Registered
Certificate at the office or agency of the Trustee, if the requirements of
Section 8-401(1) of the UCC are met to the Trustee's satisfaction, and subject
to the transfer restrictions set forth in Section 5.12, the Trustee shall
execute, authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Registered Certificates of any authorized
denominations, of like tenor and aggregate Principal Balance (or Notional
Amount, as applicable). All transfers of Registered Certificates are subject to
the approval of the Trustee and the Trustee shall not approve any transfer of
Registered Certificates if such transfer would violate any provision of the
Trust Agreement.

         At the option of the holder of any Registered Certificate, such
Certificate may be exchanged for one or more other Registered Certificates of
any authorized denomination or denominations of like tenor and aggregate
Principal Balance (or Notional Amount, as

                                       28
<PAGE>   35
applicable) upon surrender of the Registered Certificate to be exchanged at the
office or agency of the Trustee maintained for such purpose. Whenever any
Registered Certificates are so surrendered for exchange, the Trustee shall
execute, authenticate and deliver the Registered Certificates that the
exchanging holder is entitled to receive.

         All Registered Certificates issued upon registration of any transfer or
exchange of Registered Certificates shall constitute complete and indefeasible
evidence of ownership in the Trust Property and be entitled to the same benefits
under the Trust Agreement as the Registered Certificates surrendered upon such
registration of transfer or exchange.

         (c) Each Registered Certificate presented or surrendered for
registration of transfer or exchange shall (if so required by the Trustee or the
Certificate Registrar) (i) be duly endorsed, or be accompanied by a written
instrument of transfer in a form satisfactory to the Trustee and the Certificate
Registrar duly executed, by the holder thereof or such holder's attorney duly
authorized in writing, which signature shall be guaranteed by a commercial bank
or trust company or by a member firm of a national securities exchange, and (ii)
be accompanied by such other documents as the Trustee may require.

         (d) No service charge shall be imposed on a Certificateholder for any
registration of transfer or exchange of Registered Certificates, but the Trustee
may require payment by the Holders of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange, except in the case of any exchange pursuant to Section
5.03, 5.12(a)(ii) or 5.13(a).

         SECTION 5.05. Mutilated, Destroyed, Lost and Stolen Certificates

         If (i) any mutilated Certificate is presented to the Depositor or the
Trustee or (ii) the Depositor and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and the
Depositor and the Trustee receive such security or indemnity as they may require
to save each of them and any Paying Agent harmless, and neither the Depositor
nor the Trustee receives notice that such Certificate has been acquired by a
bona fide purchaser, then, in each case, the Trustee shall cause one of its
Responsible Officers to execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor and Principal Balance (or Notional Amount, as
applicable), bearing a number not contemporaneously Outstanding, so that neither
gain nor loss in interest shall result from such exchange or substitution.

         Upon the issuance of any new Certificate under this Section 5.05, the
Trustee may require the payment by the Person that will become the holder of
such Certificate of a sum sufficient to cover any tax or other governmental
charge that may be imposed with respect thereto and any other expenses
(including the fees and expenses of the Trustee) in connection therewith.

                                       29
<PAGE>   36
         Each new Certificate issued pursuant to this Section 5.05 shall
constitute complete and indefeasible evidence of a beneficial ownership interest
in the Trust Property, whether or not the destroyed, lost or stolen Certificate
shall at any time be enforceable by anyone, and shall be entitled to all the
benefits of the Trust Agreement equally and proportionately with any and all
other Certificates duly issued thereunder.

         The terms of this Section 5.05 are exclusive and shall preclude (to the
extent permitted by applicable law) all other rights and remedies with respect
to the replacement or payment of mutilated, destroyed, lost or stolen
Certificates.

         SECTION 5.06. Distributions in Respect of Certificates

         (a) Any amount in respect of a Registered Certificate that is payable
and is punctually paid or duly provided for on any Distribution Date or any
other date shall be distributed to the Person in whose name such Registered
Certificate (or one or more Predecessor Certificates) is registered at the close
of business on the related Record Date, notwithstanding any cancellation of such
Registered Certificate upon any transfer or exchange subsequent to such Record
Date. Distributions on Registered Certificates shall be made, in accordance with
arrangements satisfactory to the Trustee, by wire transfer to an account
designated in writing by the Person entitled to receive such Distributions, or,
in the case of distributions of Securities in kind, by delivery of such
Securities to any DTC or other Depositary account designated in writing by such
Person, or, if such arrangements with respect to any Person are not so made no
later than 15 calendar days prior to the applicable Distribution Date, at the
Corporate Trust Office (with respect to the final distribution and distributions
in kind of Securities) or by check mailed to the address of the Person entitled
thereto as such address appears in the Certificate Register.

         (b) Unless otherwise specified in the Terms Schedule, subject to
Section 5.12 and to applicable law, any amount in respect of a Bearer
Certificate that is punctually paid or duly provided for on any Distribution
Date or any other date shall be payable only upon surrender of the applicable
coupons or Certificates, as the case may be, and at such offices or agencies
outside the United States as the Trustee may from time to time designate.

         (c) Subject to paragraphs (a) and (b) above, each Certificate delivered
under the Trust Agreement upon transfer of or in exchange for or in lieu of any
other Certificate shall carry the rights to amounts to be distributed that are
accrued and undistributed, and to accrue, that were carried by such other
Certificate.

         SECTION 5.07. Persons Deemed Owners

         The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name any Registered Certificate is
registered as the owner of such Certificate on the relevant Record Date for the
purpose of receiving distributions of principal of, and any premium and any
interest on, such Certificate and for all other purposes whatsoever, whether or
not such Certificate shall be overdue, and neither the

                                       30
<PAGE>   37
Depositor, the Trustee, nor any agent of the Depositor or the Trustee shall be
affected by notice to the contrary. All distributions made to any such Person,
or upon the order of such Person, shall be valid, and, to the extent of the sum
or sums paid, effectual to satisfy and discharge the liability for moneys
distributable in respect of such Certificate.

         SECTION 5.08. Cancellation

         All Certificates surrendered for payment, redemption or registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly canceled by it. Any
Certificates previously authenticated and delivered hereunder (i) which may have
been acquired on behalf of the Trust or (ii) which have not been issued and sold
on behalf of the Trust, may be delivered on behalf of the Trust to the Trustee
(or to any other Person for delivery to the Trustee) for cancellation, and all
Certificates so delivered shall be promptly canceled by the Trustee. No
Certificates shall be authenticated in lieu of or in exchange for any
Certificates surrendered as provided in this Section 5.08, except as expressly
permitted by the Trust Agreement.

         SECTION 5.09. Currency of Distributions in Respect of Certificates;
Redenomination

         (a) Except as provided in (b) below, distributions of the principal of,
or any premium or any interest on, Certificates shall be made in the Specified
Currency.

         (b) Unless otherwise provided in the Terms Schedule, if distributions
in respect of a Certificate are required to be made in a Specified Currency
other than Dollars, and such currency is unavailable due to the imposition of
exchange controls or other circumstances beyond the control of the Depositor,
the Trust and their respective Affiliates, or is no longer used by the
government of the country issuing such currency or for the settlement of
transactions by public institutions of or within the international banking
community, then all distributions in respect of such Certificate shall be made
at a time and in a manner determined by the Exchange Rate Agent in its sole
discretion, which may be in the Specified Currency at such reasonable time as
such currency is again available or so used, or in such other currency and at
such rates as the Exchange Rate Agent may determine.

         Each of the protections, releases, indemnities and other terms
applicable to the Trustee under Sections 10.01, 10.02, 10.03 and 10.05 shall
apply, mutatis mutandis, to the Exchange Rate Agent in connection with its
actions as Exchange Rate Agent for the Trust.

         SECTION 5.10. Appointment of Paying Agent

         (a) The Trustee may appoint one or more paying agents (each, a "Paying
Agent") with respect to the Certificates, and shall appoint at least one Paying
Agent outside the United States in respect of payments to be made on any Bearer
Certificates.

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<PAGE>   38
Any such Paying Agent shall be authorized to make distributions to
Certificateholders pursuant to the Trust Agreement and shall report the amounts
of such distributions to the Trustee. The Trustee may remove the Paying Agent if
the Trustee determines in its sole discretion that the Paying Agent has failed
to perform its obligations under the Trust Agreement in any material respect or
if the Paying Agent fails to satisfy the eligibility requirements set forth in
paragraph (b) below. The Paying Agent shall initially be the Trustee and any
co-Paying Agent selected by the Depositor and acceptable to the Trustee. Any
Paying Agent shall be permitted to resign as Paying Agent upon at least 30 days'
prior written notice to the Trustee. In the event that the Trustee is no longer
the Paying Agent, the Trustee shall appoint a successor or additional Paying
Agent. The Trustee shall cause each such Paying Agent to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the
Trustee that it will hold any and all sums held by it for distribution to the
Certificateholders in an Eligible Account in trust for the benefit of the
Certificateholders entitled thereto until such sums are distributed to such
Certificateholders. The Paying Agent shall return all unclaimed funds to the
Trustee within two years from the time such funds were first eligible to be
claimed and, in the event of its removal by the Trustee, shall promptly return
all funds in its possession to the Trustee.

         (b) The Paying Agent shall at all times be a corporation or an
association, the combined capital and surplus of which is at least $50,000,000
and the long-term debt obligations of which are rated in one of the four highest
categories assigned to long-term debt obligations by each of the Rating
Agencies, and which is subject to supervision or examination by Federal or State
authorities. If such corporation or association publishes reports of conditions
at least annually, the combined capital and surplus of such corporation or
association at any time shall be deemed to be its combined capital and surplus
as set forth in its most recent report of conditions so published. In the event
that the Paying Agent at any time ceases to be eligible in accordance with the
terms of this paragraph (b), the Paying Agent shall promptly return all funds
then in its possession to the Trustee and then resign immediately. Upon such
resignation, the Trustee shall act as Paying Agent until the appointment of a
successor Paying Agent in accordance with paragraph (a) above.

         (c) The Trustee shall pay to each Paying Agent from time to time
reasonable compensation for its services under this Section 5.10.

         (d) The provisions of Sections 10.01, 10.02, 10.03, 10.05 and 10.06
shall apply to the Trustee also in its role as Paying Agent, if and for so long
as the Trustee acts as Paying Agent in accordance with this Section 5.10.

         (e) Any reference in the Trust Agreement to the Paying Agent shall
include any co-Paying Agent, unless the context requires otherwise.

         (f) Any funds returned by the Paying Agent to the Trustee pursuant to
the last sentence of paragraph (a) or the penultimate sentence of paragraph (b)
above shall be set

                                       32
<PAGE>   39
aside and held in trust by the Trustee for the benefit of the Certificateholders
entitled to such funds.

         SECTION 5.11. Authenticating Agent

         (a) The Trustee may appoint one or more Authenticating Agents (each, an
"Authenticating Agent") with respect to the Certificates, each of which shall be
authorized to act on behalf of the Trustee in authenticating Certificates in
connection with the issuance, delivery and registration of transfer or exchange
thereof. Whenever reference is made in the Trust Agreement to the authentication
of Certificates by the Trustee or the Trustee's certificate of any
authentication, such reference shall be deemed to include any authentication on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent must
be acceptable to the Depositor.

         (b) Any institution succeeding to the corporate agency business of any
Authenticating Agent shall be an Authenticating Agent without the execution or
filing of any power or any further act on the part of the Trustee or such
institution. An Authenticating Agent may at any time resign by giving notice of
resignation to the Trustee and the Depositor. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving a notice of
termination to such Authenticating Agent and the Depositor. Upon receiving such
a notice of resignation or giving such a notice of termination, or in the event
that at any time an Authenticating Agent shall cease to be acceptable to the
Trustee or the Depositor, as the case may be, the Trustee shall act as
Authenticating Agent until the appointment of a successor Authenticating Agent
in accordance with paragraph (a) above.

         (c) The Trustee shall pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 5.11.

         (d) The provisions of Sections 10.01, 10.02, 10.03, 10.05 and 10.06
shall apply to the Trustee also in its role as Authenticating Agent if and for
so long as the Trustee acts as Authenticating Agent in accordance with this
Section 5.11.

         (e) If an Authenticating Agent (other than the Trustee) is appointed
pursuant to this Section 5.11, the Certificates may have endorsed thereon, in
lieu of the Trustee's certificate of authentication pursuant to Section 5.02(d),
an alternate certificate of authentication in substantially the following form:

         This is one of the Certificates referred to in the within-mentioned
Trust Agreement.

                      ______________________________
                      as Authenticating Agent for
                      the Trustee

                                       33
<PAGE>   40
                  By: ______________________________
                      Authorized Signatory

         SECTION 5.12. Issuance and Transfer Restrictions

         (a) If the Terms Schedule specifies that the Certificates shall be
Registered Certificates that are Book-Entry Certificates:

                  (i) Such Certificates shall be represented by one or more
         Global Certificates registered in the name of a Depositary or its
         nominee;

                  (ii) Unless otherwise provided in the Certificates or the
         Terms Schedule, any Global Certificate representing such Certificates
         shall be exchangeable for Certificate Documents registered in the name
         of Persons other than the Depositary or its nominee only if (A) the
         Depositary is no longer willing or able to act as a depositary and the
         Trustee is unable to locate a qualified successor Depository within 30
         days or (B) a Trust Wind-Up Event has occurred and be continuing. Upon
         any such exchange, the Trustee shall register such Certificate
         Documents in the name of, and cause such Certificate Documents to be
         delivered to, such other Persons; and

                  (iii) Any Global Certificate representing such Certificates
         shall bear a legend in substantially the following form:

                           "THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
                  MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS
                  REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
                  THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR
                  A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE
                  IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
                  PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
                  IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST
                  AGREEMENT."

         (b) If the Terms Schedule specifies that the Certificates shall be
Bearer Certificates:

                  (i) The Underwriting Agreement with respect to such
         Certificates shall provide that, in connection with the original
         issuance of such Certificates and during the period ending 40 days
         after such issuance, the Underwriter or Underwriters thereunder shall
         not offer, sell or deliver such Certificates, directly or indirectly,
         to a U.S. Person or to any Person within the United States, except to
         the extent permitted under U.S. Treasury regulations;

                  (ii) Such Certificates shall bear a legend to the following
         effect.

                                       34
<PAGE>   41
                  "ANY U.S. PERSON WHO HOLDS THIS OBLIGATION SHALL BE SUBJECT TO
         LIMITATIONS UNDER U.S. INCOME TAX LAWS, INCLUDING THE LIMITATIONS
         PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE INTERNAL REVENUE CODE.";
         and

                  (iii) Pending the availability of a permanent Global
         Certificate or definitive Bearer Certificates, as the case may be,
         Certificates that are issuable as Bearer Certificates may initially be
         represented by a single temporary Global Certificate, without interest
         coupons, to be deposited with a common depositary in London for
         Euroclear and Clearstream for credit to the accounts designated by or
         on behalf of the purchasers thereof. Following the availability of a
         permanent Global Certificate in bearer form, without coupons attached,
         or definitive Bearer Certificates, and subject to any further
         limitations specified in the Terms Schedule, any such temporary Global
         Certificate shall be exchangeable, in accordance with Section 5.03, for
         interests in such permanent Global Certificate or for definitive Bearer
         Certificates, respectively, only upon receipt by the Trustee of a
         certificate acceptable to the Depositor and the Trustee to the effect
         that a beneficial interest in a temporary Global Certificate is owned
         by a Person that is not a U.S. Person or is owned by or through a
         financial institution in compliance with applicable U.S. Treasury
         regulations (a "Certificate of Non-U.S. Beneficial Ownership"). No
         Bearer Certificate shall be delivered in or to the United States. If so
         specified in the Terms Schedule, interest on a temporary Global
         Certificate will be distributed to each of Euroclear and Clearstream
         with respect to that portion of such temporary Global Certificate held
         by it, but only upon receipt by the Trustee as of the relevant
         Distribution Date of a Certificate of Non-U.S. Beneficial Ownership.

         (c) (i) Subject to clause (ii) below, if the Terms Schedule specifies
that the "Alternative ERISA Restrictions" apply:

                           (A) The Certificates shall be issued only as
                  definitive Registered Certificates and no transfer of any
                  Certificate Document shall be made to any employee benefit
                  plan, domestic or foreign, whether or not subject to ERISA, or
                  described in Section 4975(e)(1) of the Code, or comparable
                  terms of any subsequent enactments, or a trustee of any such
                  plan, or an entity whose underlying assets include the assets
                  of any such plan (each of the foregoing a "Benefit Plan"),
                  unless immediately after such transfer Certificates
                  representing a percentage interest of not more than 24.9% are
                  held by Benefit Plans (for this purpose the percentage
                  interest shall be calculated as if any Certificates held by
                  the Depositor, the Trustee or any of their affiliates (within
                  the meaning of Department of Labor Reg. ss. 2510.3-101(f)(3))
                  were not outstanding);

                                       35
<PAGE>   42
                           (B) any prospective transferee shall be required to
                  certify whether or not it is a Benefit Plan or is acquiring
                  the Certificates with the assets of any Benefit Plan; and

                           (C) after the initial distribution of the
                  Certificates subject to the Alternative ERISA Restrictions,
                  neither the Depositor nor the Trustee or any of their
                  Affiliates shall acquire any Certificate, unless immediately
                  after such acquisition Certificates held by Benefit Plans
                  would not represent a percentage interest of more than 24.9%
                  (calculated as described in subclause (A) of this clause (i)).

         (ii) If the Terms Schedule specifies that the "Deemed Representations"
apply:

                           (A) The restrictions described in clause (i) above
                  shall not apply and the Certificates shall be issued in
                  reliance on certain exemptions from the prohibited transaction
                  provisions of Section 406 of ERISA and Section 4975 of the
                  Code which may be applicable, depending in part on the type of
                  Plan fiduciary making the decision to acquire a Certificate
                  and the circumstances under which such decision is made.
                  Included among these exemptions are Prohibited Transaction
                  Class Exemption ("PTCE") 91-38 (relating to investments by
                  bank collective investment funds), PTCE 84-14 (relating to
                  transactions effected by a "qualified professional asset
                  manager"), PTCE 90-1 (relating to investments by insurance
                  company pooled separate accounts), PTCE 95-60 (relating to
                  transactions involving insurance company general accounts) and
                  PTCE 96-23 (relating to transactions determined by in-house
                  asset managers);

                           (B) BY ITS PURCHASE OF ANY CERTIFICATE, THE PURCHASER
                  WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED EITHER THAT
                  (1) IT IS NOT AN ERISA PLAN OR OTHER PLAN, A GOVERNMENTAL PLAN
                  WHICH IS SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS
                  SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF SECTION 406 OF
                  ERISA OR SECTION 4975 OF THE CODE OR AN ENTITY WHOSE
                  UNDERLYING ASSETS INCLUDE THE ASSETS OF ANY SUCH ERISA PLAN OR
                  OTHER PLAN, OR (2) ITS PURCHASE, HOLDING AND DISPOSITION OF A
                  CERTIFICATE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER
                  SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE
                  CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR
                  FEDERAL, STATE OR LOCAL LAW) FOR WHICH AN EXEMPTION IS NOT
                  AVAILABLE; AND

                                       36
<PAGE>   43
                           (C) Each Person that acquires a Certificate, and each
                  fiduciary which causes a Person to acquire a Certificate, in
                  such fiduciary's individual capacity, hereby agrees to
                  indemnify and hold harmless the Depositor, the Trustee and
                  their respective affiliates from any cost, damage, loss or
                  expense incurred by them as a result of the representation set
                  forth in subclause (B) of this clause (ii) not being true.

                           (iii) Unless the Terms Schedule specifies that either
                  the "Alternative ERISA Restrictions" or the "Deemed
                  Representations" apply:

                           (A) no Certificate may be transferred to any Benefit
                  Plan that is subject to the fiduciary responsibility
                  provisions of Title I of ERISA or Section 4975(e) of the Code
                  (an "ERISA Plan"), or that is a governmental or other plan
                  subject to substantially similar legal requirements, or to any
                  Person that is acquiring the Certificate with the assets of
                  any such Benefit Plan. Any purported transfer in violation of
                  this restriction shall be void ab initio;

                           (B) BY ITS PURCHASE OF ANY CERTIFICATE, THE PURCHASER
                  WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS
                  NOT AN ERISA PLAN, IS NOT A GOVERNMENTAL OR OTHER PLAN SUBJECT
                  TO SUBSTANTIALLY SIMILAR LEGAL REQUIREMENTS, AND IS NOT USING
                  THE ASSETS OF ANY SUCH BENEFIT PLAN TO PURCHASE THE
                  CERTIFICATE; AND

                           (C) each Person that acquires a Certificate, and each
                  fiduciary which causes a Person to acquire a Certificate, in
                  such fiduciary's individual capacity, hereby agrees to
                  indemnify and hold harmless the Depositor, the Trustee and
                  their respective affiliates from any cost, damage, loss or
                  expense incurred by them as a result of the representation set
                  forth in subclause (B) of this clause (iii) not being true.

         (d) Each of the Trustee and the Depositor is entitled to request
additional evidence from a proposed transferee of any Certificate to ensure to
its sole satisfaction the accuracy of the representations in the Underwriting
Agreement relating to the matters identified in the preceding paragraphs.

         (e) If, at any time, the Trustee learns that any of the representations
or warranties provided by a transferee or prospective transferee of any
Certificate is inaccurate or that any agreement made therein has been breached,
any purported transfer of such Certificate to such transferee or prospective
transferee shall be null and void ab initio. The Trustee shall arrange for the
compulsory sale (at a price determined by the Depositor) for any purported
transfer of a Certificate in contravention of any of the transfer restrictions
set forth herein. The Trustee shall also have such other powers as

                                       37
<PAGE>   44
may be necessary, in its sole discretion, to effect compliance with the terms of
this Section 5.12.

         SECTION 5.13. Optional Exchange

         (a) In order for a Certificate of any Exchangeable Series (or Class
within such Exchangeable Series) to be exchanged by a holder thereof, the
Trustee must receive, at least 30 (or such shorter period acceptable to the
Trustee) but not more than 45 days prior to an Optional Exchange Date, (i) such
Certificate with the form entitled "Option to Elect Exchange" duly completed or
(ii) in the case of a Registered Certificate, a telegram, telex, facsimile
transmission or letter from a member of a national securities exchange, the
National Association of Securities Dealers, Inc., the Depositary (in accordance
with its normal procedures) or a commercial bank or trust company in the United
States, which shall set forth the name of such holder, the Principal Balance (or
Notional Amount, as applicable) to be exchanged, the certificate number or a
description of the tenor and terms of such Registered Certificate, a statement
that the option to elect exchange is being exercised thereby and a guarantee
that such Registered Certificate with the form entitled "Option to Elect
Exchange" duly completed will be received by such Trustee not later than five
Business Days after the date of such telegram, telex, facsimile transmission or
letter. If the procedure described in clause (ii) of the immediately preceding
sentence is chosen, then such Registered Certificate and duly completed form
must be received by the Trustee by such fifth Business Day. Any tender of a
Certificate by the holder thereof for exchange shall be irrevocable. The
exchange option may be exercised by the holder of a Certificate for less than
the entire Principal Balance (or Notional Amount, as applicable), of such
Certificate, provided the Principal Balance (or Notional Amount, as applicable),
of such Certificate remaining outstanding after such exchange is an authorized
denomination and any other requirements specified in the Terms Schedule are
satisfied. Upon any such partial exchange, such Certificate shall be canceled
and a new Certificate or Certificates of like tenor for the remaining Principal
Balance (or Notional Amount, as applicable) thereof shall be issued in the name
of the holder of such exchanged Certificate.

         (b) Unless otherwise specified in the Terms Schedule, upon satisfaction
of the conditions specified in paragraph (a) above and any applicable conditions
with respect to the related Trust Property, the exchanging Certificateholder
shall be entitled to receive a distribution of a pro rata share of such Trust
Property, in the manner and to the extent specified in the Terms Schedule.
Alternatively, if so specified in the Terms Schedule, the exchanging
Certificateholder, upon satisfaction of such conditions, may direct the Trustee
to sell, on behalf of such Certificateholder, such pro rata share of such Trust
Property, in which case the Certificateholder shall be entitled to receive the
net proceeds of such sale, less any costs and expenses incurred by the Trustee
in facilitating such sale, subject to any additional adjustments set forth in
the Terms Schedule. Notwithstanding the foregoing, to the extent that any
portion of such pro rata share does not correspond to an even number of related
Securities (or of any other elements of such Trust Property that are
indivisible), the Trustee shall sell the number of such Securities (or such
other

                                       38
<PAGE>   45
elements, as the case may be) most closely corresponding to such portion, in
which case the Certificateholder shall be entitled to receive such portion of
the net proceeds of such sale, less any costs and expenses incurred by the
Trustee in facilitating such sale, with the balance of such proceeds to be
deposited in the Certificate Account.

         (c) Notwithstanding the preceding paragraphs, any right of exchange in
respect of an Exchangeable Series shall be exercisable only to the extent that
the Depositor determines that such exchange would not be inconsistent with the
Depositor's and the Trust's continued satisfaction of the applicable
requirements for exemption under Rule 3a-7 under the Investment Company Act. The
Terms Schedule shall specify any additional terms pertaining to any right of
exchange, including the following:

                  (i) a requirement that the exchanging Holder tender to the
         Trustee Certificates of each Class within the Exchangeable Series;

                  (ii) a minimum Principal Balance (or Notional Amount, as
         applicable), with respect to each Certificate being tendered for
         exchange;

                  (iii) a requirement that the Principal Balance (or Notional
         Amount, as applicable), of each Certificate tendered for exchange be an
         integral multiple of a specified amount;

                  (iv) specified dates on which a Holder may effect such an
         exchange (each, an "Optional Exchange Date");

                  (v) limitations on the right of an exchanging Holder to
         receive any benefit upon exchange from any Credit Support or other
         non-Securities constituting a part of the Trust Property; and

                  (vi) a requirement that the exchanging holder obtain the
         consent of the Swap Counterparty to such exchange and tender to the
         Swap Counterparty a termination payment for termination of the portion
         of the Swap Agreement corresponding to the portion of the Securities to
         be distributed by the Trustee.

         (d) If the Terms Schedule specifies that "Depositor Optional Exchange"
is applicable to the Certificates, any Certificates held by the Depositor or its
Affiliates from time to time shall be subject to a right of exchange by the
Depositor or such Affiliates, but not by other Certificateholders, for a pro
rata portion of the Trust Property of the related Trust, subject to one or more
of the conditions set forth or referred in paragraphs (b) and (c) above and as
specified in the Terms Schedule.

         SECTION 5.14. Callable Certificates

         (a) If one or more specified Persons has or have the right to purchase
all or a portion of the Certificates (a "Call Right"), the Terms Schedule shall
designate such

                                       39
<PAGE>   46
Series as a "Callable Series," and specify the terms and conditions upon which
such right may be exercised. Such terms and conditions may include the
following:

                  (i) a minimum Principal Balance (or Notional Amount, as
         applicable) with respect to each Certificate being purchased;

                  (ii) a requirement that the Principal Balance (or Notional
         Amount, as applicable) of each Certificate being purchased be an
         integral multiple of a specified amount;

                  (iii) specified dates during which such a purchase may be
         effected (each, a "Call Date"); and

                  (iv) the price at which such a purchase may be effected (the
         "Call Price").

         After receiving notice of the exercise of any Call Right, the Trustee
shall give notice thereof in the manner specified in the Terms Schedule.

         (b) Prior to the redemption date specified in the Terms Schedule, the
Person exercising the Call Right shall deposit, or cause to be deposited, with
the Trustee or with a Paying Agent (or, if such Person is acting as its own
Paying Agent, shall segregate and hold in trust), an amount of money to pay the
Call Price of, and (unless the redemption date is an interest payment date)
accrued interest on, all Certificates which are to be purchased on such date.

         (c) On the redemption date specified in the Terms Schedule, the
Certificates being purchased shall become due and payable at the Call Price, and
from and after such date (unless the Person exercising the Call Right defaults
in the payment of the Call Price and any accrued interest) such Certificates
shall cease to bear interest. Upon surrender of any such Certificate for
redemption in accordance with the notice given by the Trustee in accordance with
the last sentence of paragraph (a) above, such Certificate shall be paid by the
Person exercising the Call Right at the Call Price, together with accrued
interest to the redemption date; provided that, unless otherwise specified in
the Terms Schedule, installments of interest becoming due and payable on or
prior to the redemption date shall be payable to the holder of such Certificate,
or one or more Predecessor Certificates, registered as such at the close of
business on the relevant Record Date.

                                   ARTICLE VI

                                  The Depositor

         SECTION 6.01. Liability of the Depositor

         The Depositor shall be liable in accordance with the Trust Agreement
only to the extent of the obligations specifically imposed thereby on the
Depositor.

                                       40
<PAGE>   47
         SECTION 6.02. Limitation on Liability of the Depositor

         (a) Except as may be otherwise expressly specified in the Trust
Agreement, the Depositor shall not be under any obligation to (i) expend or risk
its own funds, except to the extent of its obligation to pay any amount payable
under the Trustee Fee Letter or under Section 10.05(b), or (ii) otherwise incur
financial liability in the performance of its duties thereunder or in the
exercise of any of its rights or powers, in each case of clauses (i) and (ii) to
the extent that reasonable grounds exist for believing that the repayment of
such funds or adequate indemnity against such liability is not reasonably
assured to it.

         (b) Neither the Depositor nor any of its directors, officers, employees
or agents shall be under any liability to the Trustee, the Trust or the
Certificateholders for taking any action, or refraining from taking any action,
in good faith pursuant to the Trust Agreement, or for errors in judgment;
provided, however, that this sentence shall not protect any such Person against
any liability (i) related to the inaccuracy or breach of any representation,
warranty or agreement of the Depositor in the Trust Agreement, (ii) specifically
imposed on the Depositor pursuant to the Trust Agreement, or (iii) by reason of
willful misfeasance, bad faith or negligence in the performance of, or reckless
disregard of, obligations specifically set forth in the Trust Agreement.

         (c) The Depositor shall not be under any obligation to appear in,
prosecute or defend any Proceeding unless such Proceeding is related to its
obligations under the Trust Agreement and, in its reasonable opinion, does not
involve it in any expense or liability; provided, however, that the Depositor
may in its discretion appear in, prosecute or defend any such Proceeding which
it may deem necessary or desirable with respect to the Trust Agreement and the
rights and duties of the parties thereto and the interests of the
Certificateholders.

         SECTION 6.03. Depositor May Purchase Certificates

         The Depositor or its Affiliates may at any time purchase Certificates
in the open market or otherwise. Certificates so purchased may, at the
discretion of the Depositor, be held, resold or, to the extent permitted under
the terms thereof, exchanged or called by the Depositor or such Affiliates.

         SECTION 6.04. Preparation and Filing of Exchange Act Reports;
Obligations of the Depositor

         The Depositor shall:

         (a) On behalf of the Trust, prepare, sign and file with the Commission,
with copies to the Trustee, within the applicable time periods set forth below,
such reports as may from time to time be required to be filed by or on behalf of
the Trust with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act (collectively, the "Exchange Act Reports") with respect to the Trust. Such
Exchange Act Reports include:

                                       41
<PAGE>   48
                  (i) Form 8-K, to be filed in such circumstances and within
         such time periods prescribed therefor by the Commission under the
         Exchange Act; and

                  (ii) Form 10-K, to be filed within the time period prescribed
         therefore by the Commission under the Exchange Act.

         (b) Deliver to the Trustee, within 15 days after same are required to
be filed with the Commission, such additional information, documents and reports
with respect to compliance by the Depositor with the conditions and covenants of
the Trust Agreement, if any, as may be required to be filed with the Commission
from time to time; and

         (c) Deliver to the Trustee, which shall then transmit by mail to
Certificateholders in accordance with TIA Section 313(c), such summaries of any
information, documents and reports required to be filed by the Depositor and
received pursuant to paragraphs (a) and (b) above, as may be required to be
filed by the rules and regulations prescribed from time to time by the
Commission under the Exchange Act.

         SECTION 6.05. Preferential Collection of Claims Against Depositor

         Irrespective of whether the TIA shall apply to the Trust Agreement, the
Trustee shall comply with the obligations set forth in TIA Section 311(a),
taking into account the exclusion set forth in TIA Section 311(b). A trustee
that has resigned or has been removed shall be subject to such obligations to
the extent set forth in TIA Section 311(a).

                                  ARTICLE VII

                          Rights of Certificateholders

         SECTION 7.01. Voting Rights with Respect to Securities

         (a) Within five Business Days after receipt of notice of any meeting
of, or other occasion for the exercise of voting rights or the giving of
consents by, owners of the Securities, the Trustee shall give notice to the
Certificateholders, which notice shall contain (i) such information as is
contained in such notice to owners of the Securities, (ii) a statement that the
Certificateholders will be entitled, subject to the applicable law and any
applicable provision of the Securities, to instruct the Trustee as to the
exercise of voting rights, if any, pertaining to the Securities and (iii) a
statement as to the manner in which instructions may be given to the Trustee to
give a discretionary proxy to a Person designated in the notice received by the
Trustee. Such notice shall be given by the Trustee to the Certificateholders of
record as soon as practicable after, but in any event within three Business Days
from, the date on which the relevant notice to owners of the Securities is
received by the Trustee.

         (b) Unless otherwise specified in the Terms Schedule, the voting rights
allocable to owners of the Securities pursuant to the terms thereof shall be
allocated among the Certificateholders pro rata, in the proportion that the
Principal Balance (or

                                       42
<PAGE>   49
Notional Amount, as applicable) of each such holder bears to the aggregate
Principal Balance (or Notional Amount, as applicable) of all such holders; and
upon the written request of each Certificateholder, if received on or before the
date established by the Trustee for such purpose, the Trustee shall endeavor,
insofar as practicable and permitted under applicable law and any applicable
provision of the Securities, to vote in accordance with any nondiscretionary
instruction set forth in such written request; provided that the Trustee shall
not vote except as specifically authorized and directed by written instructions
from each Certificateholder entitled to give such instructions; provided,
further, that if the aggregate Principal Balance (or Notional Amount, as
applicable) held by all Certificateholders instructing the Trustee to vote on a
particular matter in a certain manner does not correspond to an even number of
Securities, the Trustee shall vote the number of Securities most closely
corresponding to such aggregate Principal Balance (or Notional Amount, as
applicable) in such manner, with any portion of the Principal Balance (or
Notional Amount, as applicable) representing less than half of a Security not so
voted and any portion of the Principal Balance (or Notional Amount, as
applicable) representing half or more of a Security so voted.

         (c) Notwithstanding paragraph (b) above, the Trustee shall reject any
vote to (i) alter the currency, amount or timing of payment of, or the method or
rate of accruing, any principal or interest on the Securities, (ii) consent to
any redemption or prepayment of the Securities, or (iii) unless otherwise
specified in the Terms Schedule, consent to any exchange of, substitution or
tender for, any Securities pursuant to a plan or refunding of Securities or any
other offer for the Securities, in each case of clauses (i) through (iii) unless
(x) the Trustee is directed by the affirmative vote of all Certificateholders to
accept such amendment or offer, as the case may be and (y) the Trustee receives
advice of nationally recognized independent tax counsel, designated by the
Depositor, that such exercise of voting rights would not result in a "sale or
other disposition" of such Securities within the meaning of Section 1001(a) of
the Code. The Trustee shall not grant any consent (other than a unanimous
consent) solicited from the owners of the Securities with respect to any of the
matters specified in clauses (i) through (iii) above, nor shall it accept or
take any action in respect of any consent, proxy or instructions received from
any Certificateholder in contravention of such provisions unless otherwise
directed by the affirmative vote of all Certificateholders. In addition, if the
Trustee determines (based upon advice of nationally recognized independent tax
counsel, whether obtained at the request of any Certificateholder or otherwise)
that any exercise of voting rights with respect to the Securities could result
in a "sale or other disposition" of such Securities within the meaning of
Section 1001(a) of the Code, the Trustee shall exercise such voting rights in a
manner that would not result in any such "sale or other disposition", unless
otherwise directed by the affirmative vote of all Certificateholders. The
Trustee shall have no responsibility to undertake on its own initiative to
determine that any exercise of voting rights with respect to the Securities
would result in any such sale or other disposition, and in any event need not
undertake to make such determination unless receiving an indemnity reasonably
satisfactory to it against the costs of such determination.

                                       43
<PAGE>   50
         SECTION 7.02. Amendments and Waivers Under Swap Agreement and Swap
Guarantee

         Without the need for consent of any Certificateholder, the Trustee
shall enter into any amendment of the Swap Agreement or any Swap Guarantee
requested by the Swap Counterparty or any Swap Guarantor, respectively, to cure
any ambiguity or manifest error in, or to correct or supplement any provision
of, the Swap Agreement or any Swap Guarantee, provided (i) the Trustee
determines that such amendment would not adversely affect the interests of the
Certificateholders and (ii) the Trustee has received an Opinion of Counsel, at
the expense of the Swap Counterparty or any Swap Guarantor, as applicable, to
the effect that such amendment would not adversely affect the interests of the
Certificateholders and would not alter the classification of the Trust for U.S.
Federal income tax purposes. The Trustee shall not agree to any other request
from the Swap Counterparty or any Swap Guarantor for approval of any consent,
waiver or other modification of the Swap Agreement or any Swap Guarantee,
respectively, without the unanimous consent of the Certificateholders and
compliance with clause (ii) of the immediately preceding sentence.

                                  ARTICLE VIII

             Default on Securities, Credit Support, Swap Agreement,
                    Swap Guarantee or Permitted Investments

         SECTION 8.01. Realization Upon Default

         (a) The Trustee, on behalf of the Certificateholders, shall assert
claims under the Securities, the Credit Support, the Swap Agreement, any Swap
Guarantee and the Permitted Investments, and shall take such reasonable steps as
may be necessary to receive payment or to permit recovery thereunder in the case
of any Security Default, Credit Support Default, Swap Default or any default
related to the Permitted Investments, as the case may be, subject in all cases
to Article X.

         (b) If the Trustee is unable to obtain full recovery in respect of a
Security, Credit Support, Swap Agreement, Swap Guarantee or Permitted Investment
affected by a Security Default, Credit Support Default, Swap Default or default
related to such Permitted Investment, as the case may be, the Trustee shall
follow or cause to be followed such normal practices and procedures as it may
deem necessary or advisable to realize upon such Security, Credit Support, Swap
Agreement, Swap Guarantee or Permitted Investment, as the case may be, subject
in all cases to Article X.

         (c) If the Trustee becomes aware of any Security Default, Credit
Support Default, Swap Default or default related to any Permitted Investment, it
shall give notice thereof to the Certificateholders as promptly as practicable
in accordance with Section 12.05, and in the manner and to the extent provided
in TIA Section 313(c) within 90 days after such default occurs.

                                       44
<PAGE>   51
                                   ARTICLE IX

                        Wind-Up and Liquidation of Trust

         SECTION 9.01. Trust Wind-Up Events

         If any of the following events (each, a "Trust Wind-Up Event") occurs
and is continuing:

         (a) any Security Default resulting either (i) in a Security Default
with respect to all Securities held by the Trust or (ii) in a Swap Termination
Event with respect to which all Swap Transactions are Affected Swap
Transactions;

         (b) any Security held by the Trust becomes a Disqualified Security and
(i) the Trust holds no other Security that is not a Disqualified Security or
(ii) the Terms Schedule specifies that a Trust Wind-Up Event shall occur upon
such Security becoming a Disqualified Security;

         (c) any Credit Support becomes Disqualified Credit Support and the
Terms Schedule specifies that a Trust Wind-Up Event shall occur upon such Credit
Support becoming Disqualified Credit Support;

         (d) any Swap Default arising from any action taken or failure to act,
by the Swap Counterparty;

         (e) any Swap Termination Event with respect to which the Swap
Counterparty is the sole Affected Party (as defined in the Swap Agreement) and
all Swap Transactions are Affected Swap Transactions, provided at the time of
such occurrence no Swap Settlement Amount (as defined in the Swap Agreement)
would be payable by the Trust to the Swap Counterparty upon designation of an
Early Swap Termination Date by the Trust;

         (f) any Swap Transaction becomes a Disqualified Swap Transaction and
(i) the Trust holds no trust property other than Securities related to
Disqualified Transactions or (ii) the Terms Schedule specifies that a Trust
Wind-Up Event shall occur upon such Swap Transaction becoming a Disqualified
Swap Transaction;

         (g) the designation of an Early Swap Termination Date by the Swap
Counterparty under the Swap Agreement with respect to all Swap Transactions;

         (h) the Depositor owns 100% of the Principal Balance (or Notional
Amount, as applicable) of the Certificates, and the Depositor decides to
terminate the Trust (a "Special Depositor Wind-Up Event");

         (i) any Excess Expense Event; or

                                       45
<PAGE>   52
         (j) any other Trust Wind-Up Event specified in the Terms Schedule;

then, in each such case, the Trustee shall, (x) by notice to the Swap
Counterparty, terminate the Swap Agreement (including all Swap Transactions
thereunder) if such notice is required under the Swap Agreement, (y) sell, or
cause the Selling Agent to sell, the Trust Property in accordance with Section
9.03(b) and (z) distribute to each Certificateholder its pro rata share of the
proceeds from such sale in accordance with Section 9.03(d), whereupon the Trust
shall terminate; provided that, if the Certificateholders exercise their right
under Section 9.03(c) prior to the sale of all the Trust Property by the Trustee
or the Selling Agent, as the case may be, the Trust shall continue
notwithstanding such Trust Wind-Up Event.

         SECTION 9.02. Liquidation Events

         (a) In the event that (i) a Security Default occurs which under the
terms of the Swap Agreement results in the termination of at least one but less
than all Swap Transactions or (ii) any Security becomes a Disqualified Security,
but the Trust holds one or more other Securities which are not Disqualified
Securities, and in each case of clauses (i) and (ii), a Trust Wind-Up Event has
not otherwise occurred, then the Affected Securities (and, if necessary, other
Trust Property) shall be sold in accordance with Section 9.03(b) to the extent
necessary to make any Termination Payment applicable to the Affected Swap
Transaction, and any balance of the proceeds from such sale shall be distributed
to the Certificateholders in accordance with Section 9.03(d), but the Trust
shall continue.

         (b) In the event that any Swap Transaction becomes a Disqualified Swap
Transaction but the Trust holds one or more other Securities other than the
Affected Securities which are not Disqualified Securities and a Trust Wind-Up
Event has not otherwise occurred, then the Affected Securities (and, if
necessary, other Trust Property) shall be sold in accordance with Section
9.03(b) to the extent necessary to make any Termination Payment applicable to
the Disqualified Swap Transaction, and any balance of the proceeds from such
sale shall be distributed to the Certificateholders in accordance with Section
9.03(d), but the Trust shall continue.

         (c) In the event that any Credit Support becomes Disqualified Credit
Support but a Trust Wind-Up Event has not otherwise occurred, then such Credit
Support shall be terminated and any proceeds resulting from such termination
shall be distributed to the Certificateholders in accordance with Section
9.03(d), but the Trust shall continue.

         SECTION 9.03. Trust Property Made Available

         (a) Subject to Section 9.04, as promptly as possible after the
occurrence of a Trust Wind-Up Event or Liquidation Event, and in any case within
five Business Days after such occurrence, the Trustee shall provide notice to
the Certificateholders and the Rating Agencies of such occurrence, the
termination of the Swap Agreement or the particular Affected Swap Transaction or
Transactions thereunder, the amount of any

                                       46
<PAGE>   53
related Swap Termination Payment and the right of the Certificateholders under
paragraph (c) below. In the case of a Trust Wind-Up Event, such notice shall
also state (i) that the Trust will terminate and that Certificateholders should
surrender their Certificates to the Trustee or deliver security or indemnity
reasonably acceptable to the Trustee in exchange for cash, (ii) the cause of
such Trust Wind-Up Event, (iii) the location and business hours of the Corporate
Trust Office at which Certificates should be presented and surrendered and (iv)
that each Certificateholder must supply transfer instructions in writing with
respect to any distributions.

         (b) Subject to Section 9.04, upon the occurrence of a Trust Wind-Up
Event or Liquidation Event, the Trustee shall notify the Selling Agent that the
Trust is required to sell Securities or other Trust Property, and the Selling
Agent shall undertake to sell Securities or other Trust Property on behalf of
the Trust, unless and until the Selling Agent receives notice from the Trustee
of an exercise by the Certificateholders of their right under paragraph (c)
below; provided, however, that the Selling Agent may elect not to act as Selling
Agent with respect to all or a part of the Securities or other Trust Property to
be sold by written notice to that effect to the Trustee. The timing, price and
other terms of any sale conducted by the Selling Agent shall be determined by
the Selling Agent in its sole discretion, but all such sales shall be completed
within 30 days or such longer period of time as may be reasonable with respect
to the Securities or other Trust Property to be sold. In the case of a
Liquidation Event, sales made under this paragraph (b) shall be limited to the
Affected Securities, except to the extent that the proceeds from such sales
would be insufficient to make the Termination Payment.

         (c) In the circumstances described in paragraph (b) above, the
Certificateholders, acting unanimously, may instruct the Trustee in writing to
discontinue any sale of Trust Property, provided they also pay to the Trustee
the amount of (i) any Termination Payment required to be made by the Trust plus
(ii) in the case of an Excess Expense Event, any Extraordinary Trust Expenses
required to be paid by the Trust pursuant to Section 10.05(c). Promptly upon
receiving notice from the Trustee of the exercise by the Certificateholders of
their right under this paragraph (c), the Selling Agent shall discontinue any
sale of Trust Property; provided that the Selling Agent and the Trustee may
complete the settlement of any sale already agreed. It is expressly understood
and agreed that the Selling Agent and the Trustee are authorized to, and may,
sell Trust Property during the time necessary for the Certificateholders to be
notified of and act upon their right under this paragraph (c).

         (d) Subject to the security interest granted in favor of the Swap
Counterparty pursuant to the Swap Agreement and any obligation of the Trust to
pay Extraordinary Trust Expenses pursuant to Section 10.05(c), each
Certificateholder shall be entitled to receive a pro rata portion of the net
proceeds of any sale of Trust Property pursuant to paragraph (b) above, upon
surrender, or delivery of security or indemnity acceptable to the Trustee, by
such holder of its Certificates at the Corporate Trust Office referred to in
paragraph (a) above.

                                       47
<PAGE>   54
         (e) The only distributions to which the Certificateholders are entitled
are, subject to the security interest granted in favor of the Swap Counterparty
pursuant to the Swap Agreement and any obligation of the Trust to pay
Extraordinary Trust Expenses pursuant to Section 10.05(c), payments on the
Securities (including any payments in connection with any exchange of,
substitution or tender for, or consent solicitation relating to, any
Securities), any and all amounts recovered under the Swap Agreement or any Swap
Guarantee, received by the Trustee after the occurrence of the relevant Trust
Wind-Up Event and any other remaining Trust Property. Such amounts shall be
distributed by the Trustee to the Certificateholders in accordance with Section
4.01 upon satisfaction of the conditions for transfer of Securities referred to
in paragraph (b) above.

         (f) Except for the obligation to provide reports and other information
required to be provided to Certificateholders under the Trust Agreement, the
obligations of the Trustee and the Depositor shall terminate upon the
distribution to Certificateholders of all amounts required to be distributed to
them and the disposition of all Securities held by the Trustee, and such
distribution shall constitute full satisfaction of all of the interests of the
Certificateholders in respect of the Trust.

         (g) In the event that the Selling Agent resigns or declines to sell any
Securities, the Trustee shall proceed in accordance with Section 10.02(a)(x).

         (h) The Selling Agent is an agent of the Trustee only and shall have no
fiduciary or other duties to the Certificateholders, nor shall the Selling Agent
have any liability to the Trust in the absence of the Selling Agent's bad faith
or willful default. The Selling Agent shall be permitted to sell Securities to
its Affiliates. The Selling Agent may resign at any time by written notice to
the Trustee, such resignation to take effect immediately upon notice. Except as
provided in the first sentence of this paragraph (h), each of the protections,
releases, indemnities and other terms applicable to the Trustee under Sections
10.01, 10.02, 10.03 and 10.05 shall apply, mutatis mutandis, to the Selling
Agent in connection with its actions as Selling Agent for the Trust.

         (i) No Certificateholder shall have any liability as a seller of Trust
Property in connection with any sale of Trust Property by the Trustee or the
Selling Agent.

         SECTION 9.04. Limitation on Notice Requirement

         The Trustee shall not be responsible for terminating the Swap Agreement
(or any Swap Transaction thereunder) or giving notice of a Trust Wind-Up Event
unless and until (i) the Trustee does not receive funds due on the Securities or
under the Swap Agreement when due or within any applicable grace period, (ii)
receipt by the Trustee of notice from the Swap Counterparty of the occurrence of
a Swap Default or Swap Termination Event or upon actual knowledge of a Swap
Default or Swap Termination Event by a Responsible Officer of the Trustee or
(iii) receipt by the Trustee of notice from the Security Issuer of the
occurrence of a Security Default.

                                       48
<PAGE>   55
         SECTION 9.05. Excess Expense Event

         (a) Promptly upon the incurrence by the Trustee of Extraordinary Trust
Expenses in an aggregate amount exceeding the Trigger Amount, and in any event
within three Business Days after such incurrence, the Trustee shall provide
notice thereof to each Certificateholder, the Swap Counterparty and the Rating
Agencies. Such notice shall state that an "Excess Expense Event" shall occur on
the seventh calendar day (or, if such day is not a Business Day, on the next
succeeding day that is a Business Day) following the provision of such notice
unless prior to such day either the Certificateholders unanimously agree, or the
Swap Counterparty agrees, to indemnify the Trustee for all Extraordinary Trust
Expenses exceeding the Maximum Reimbursable Amount (or for any other amount
specified by the party agreeing to indemnify the Trustee) and actually incurred
by the Trustee as of the date of such agreement, to the reasonable satisfaction
of the Trustee; provided that in no event shall the Trustee be released from its
obligations under the Trust Agreement until such seventh calendar day (or, if
such day is not a Business Day, the next succeeding day that is a Business Day).

         (b) Nothing in this Section 9.05 shall be construed to excuse the
Depositor or the Trust from their respective indemnification obligations under
Section 10.05.

                                   ARTICLE X

                             Concerning the Trustee

         SECTION 10.01. Duties of Trustee

         (a) The Trustee undertakes to perform such duties and only such duties
as are specifically set forth in the Trust Agreement. Any permissive right of
the Trustee enumerated in the Trust Agreement shall not be construed as a duty.

         (b) The Trustee, upon receipt of any resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of the Trust Agreement, shall examine such instruments to determine
whether they conform to the requirements of the Trust Agreement. If any such
instrument is found not to conform to the requirements of the Trust Agreement,
the Trustee shall take such action as it deems appropriate to have such
instrument corrected, and if such instrument is not corrected to the Trustee's
satisfaction, the Trustee shall provide notice thereof to the Depositor, the
Certificateholders and (if a copy of such instrument was originally furnished to
the Rating Agencies) the Rating Agencies.

         (c) Upon a Security Default, a Credit Support Default, a default by the
Swap Counterparty in making any payment due under the Swap Agreement or a
default by the Swap Guarantor after the Trustee makes a demand under any Swap
Guarantee, the Trustee shall exercise such rights and powers vested in it by the
Trust Agreement, and

                                       49
<PAGE>   56
shall use the same degree of care and skill in such exercise as a prudent Person
would use under the circumstances in the conduct of such Person's own affairs.

         (d) In the event that the Authentication Agent, the Paying Agent or the
Certificate Registrar fails to perform any obligation, duty or agreement in the
manner in which or on the day on which such obligation, duty or agreement is
required to be performed by it under the Trust Agreement, the Trustee shall be
obligated promptly upon its knowledge thereof to perform such obligation, duty
or agreement in the manner so required.

         (e) No provision of the Trust Agreement shall be construed to relieve
the Trustee from liability for its own negligent actions, its own negligent
failure to act or its own misconduct; provided, however, that:

                  (i) the duties and obligations of the Trustee shall be
         determined solely by the express terms of the Trust Agreement, the
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in the Trust Agreement,
         no implied covenants or obligations (except for a fiduciary duty to the
         beneficiaries of the Trust) shall be read into the Trust Agreement
         against the Trustee and, in the absence of negligence, bad faith or
         willful misconduct on the part of the Trustee, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon any certificates or
         opinions furnished to the Trustee that conform to the requirements of
         the Trust Agreement;

                  (ii) the Trustee shall not be personally liable for any error
         of judgment made in good faith by a Responsible Officer or Responsible
         Officers of the Trustee; and

                  (iii) except with respect to actions or duties required to be
         taken or performed, as applicable, by the Trustee under the express
         terms of the Trust Agreement, the Trustee shall not be required to
         expend or risk its own funds or otherwise incur financial liability in
         the performance of any of its duties or in the exercise of any of its
         rights or powers under the Trust Agreement if there is reasonable
         ground for believing that the repayment of such funds or adequate
         indemnity against such risk or liability is not reasonably assured to
         it.

         SECTION 10.02. Certain Matters Affecting the Trustee

         (a) Except as otherwise provided in Section 10.01:

                  (i) the Trustee may request and rely upon and shall be
         protected in acting or refraining from acting upon any resolution,
         Officers' Certificate, certificate of auditors or any other
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, appraisal, bond or other paper or document reasonably

                                       50
<PAGE>   57
         believed by it to be genuine and to have been signed by the proper
         party or parties;

                  (ii) the Trustee may consult with counsel and any advice or
         Opinion of Counsel shall be full and complete authorization and
         protection in respect of any action taken or suffered or omitted by it
         under the Trust Agreement in good faith and in accordance with such
         advice or Opinion of Counsel;

                  (iii) except for the duties and obligations of the Trustee
         expressly created by the Trust Agreement, the Trustee shall be under no
         obligation to exercise any of the trusts or powers vested in it by the
         Trust Agreement or to institute, conduct or defend any litigation
         thereunder or in relation thereto, at the request, order or direction
         of any of the Certificateholders, pursuant to the terms of the Trust
         Agreement, unless such Certificateholders or the Depositor have, to the
         reasonable satisfaction of the Trustee, offered to the Trustee security
         or indemnity against the costs, expenses and liabilities which may be
         incurred in connection therewith;

                  (iv) the Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by the Trust Agreement;

                  (v) the Trustee shall not be bound to make any investigation
         into the facts of matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, appraisal, approval, bond or other paper or document reasonably
         believed by it to be genuine;

                  (vi) the Trustee may execute any of the trusts or powers or
         perform any duties under the Trust Agreement either directly or by or
         through agents or attorneys or a custodian or administrative agent;

                  (vii) the Trustee shall not be personally liable for any loss
         resulting from the investment of funds held in the Certificate Account
         in accordance with Section 3.05;

                  (viii) the Trustee shall not be deemed to have notice or
         knowledge of any matter unless a Responsible Officer has actual
         knowledge thereof or unless written notice thereof is received by the
         Trustee at the Corporate Trust Office and such notice references the
         Certificates or the Trust Agreement;

                  (ix) the Trustee shall have the power to reimburse itself for
         any unpaid Extraordinary Trust Expenses actually incurred in accordance
         with the terms and conditions of the Trust Agreement prior to the
         distribution of funds or Trust Property to Certificateholders; and

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<PAGE>   58
                  (x) the Trustee shall have the power to sell Securities or
         other Trust Property, in accordance with Articles IX and XI, through
         the Selling Agent or, if the Selling Agent has resigned or declined to
         sell some or all of the Securities, any broker selected by the Trustee
         (with the consent of the Depositor) with reasonable care, in an amount
         sufficient to pay any amount due to the Swap Counterparty under the
         Swap Agreement or reimbursable to itself in respect of unpaid
         Extraordinary Trust Expenses, in each case prior to the distribution of
         funds or Trust Property to Certificateholders. The Selling Agent or
         such broker shall be instructed by the Trustee to sell Trust Property
         in a reasonable manner designed to maximize the sale proceeds.

         (b) All rights of action under the Trust Agreement or the Certificates
that are enforceable by the Trustee may be enforced by it without the possession
of any of the Certificates, or the production thereof at any Proceeding relating
thereto, and any Proceeding instituted by the Trustee shall be brought in its
name for the benefit of all the Certificateholders, subject to the terms of the
Trust Agreement.

         SECTION 10.03. Limitation on Liability of Trustee

         The Trustee assumes no responsibility for the correctness of the
recitals or any other factual statements contained in the Trust Agreement, the
Certificates, the Swap Agreement and any Swap Guarantee, or in any document
issued in connection with the sale of the Certificates. The sole obligor (i)
with respect to the Securities, shall be the Security Issuer, (ii) with respect
to the Swap Agreement, shall be the Swap Counterparty and (iii) with respect to
any Swap Guarantee, shall be any Swap Guarantor. Except as set forth in Section
10.11, the Trustee makes no representations or warranties as to the validity or
sufficiency of the Trust Agreement, the Certificates (other than with respect to
the signature and authentication thereof), the Securities, the Swap Agreement,
any Swap Guarantee or of any related document. The Trustee shall not be
accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of the Certificates, or for the use or
application of any funds paid to the Depositor or the Swap Counterparty in
respect of the Securities. The Certificates do not represent interests in or
obligations of the Trustee and the Trustee shall not be responsible or
accountable for any tax, accounting or other treatment proposed to be applied to
the Certificates or any interest therein, except as expressly provided in the
Trust Agreement.

         SECTION 10.04. Trustee May Own Certificates

         The Trustee in its individual capacity or any other capacity may become
the owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

         SECTION 10.05. Trustee Fees and Expenses; Limited Indemnification

         (a) As compensation for its regular and customary services and in
payment of its regular and customary expenses under the Trust Agreement
(including the reasonable

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<PAGE>   59
compensation, expenses and disbursements of its counsel for regular and
customary services hereunder) the Trustee shall be entitled to the Trustee Fees
(which shall not be limited by any provision of law in regard to compensation or
payment of a trustee of an express trust). The Depositor agrees to pay the
Trustee Fees when due in accordance with the Trustee Fee Letter; provided,
however, that, subject to paragraph (b) below, the Depositor shall be under no
obligation to make any other payment for any other services and expenses,
disbursements and advances of the Trustee.

         The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified for, and held harmless against, by the Depositor, any loss,
liability or expense incurred in connection with any Proceeding relating to the
Trust Agreement, the Swap Agreement or the Certificates or the performance of
any of the Trustee's duties under the Trust Agreement, other than any loss,
liability or expense (i) that constitutes a specific liability of the Trustee
under the Trust Agreement or (ii) incurred by reason of willful misfeasance, bad
faith or negligence in the performance, or reckless disregard of, the Trustee's
obligations thereunder (such loss, liability or expense, other than as described
in clauses (i) and (ii) of this sentence, an "Extraordinary Trust Expense");
provided, however, that with respect to any such Proceeding: (x) the Trustee
shall have given the Depositor notice thereof promptly upon obtaining knowledge
thereof; (y) while maintaining control over its own defense in any such
Proceeding, the Trustee shall consult with the Depositor in preparing such
defense; and (z) the Depositor shall in no event be obligated to indemnify the
Trustee for any Extraordinary Trust Expenses to the extent that such
Extraordinary Trust Expenses, when aggregated with all Extraordinary Trust
Expenses previously indemnified, exceeds the Maximum Reimbursable Amount.
Subject to clause (z) of the proviso to the immediately preceding sentence, the
indemnity for Extraordinary Trust Expenses shall survive the termination of the
Trust Agreement and any resignation or removal of the Trustee. In the event that
the Trustee is not indemnified by the Depositor, whether due to the Depositor's
bankruptcy or insolvency or for any other reason, pursuant to the first sentence
of this paragraph (b), the Trustee shall nevertheless remain obligated to
perform its duties under the Trust Agreement.

         SECTION 10.06. Eligibility Requirements for Trustee

         (a) The Trustee shall at all times satisfy the requirements of TIA
Section 310(a) and Section (a)(4)(i) of Rule 3a-7 under the Investment Company
Act. The Trustee shall at all times be a corporation which is not an Affiliate
of the Depositor (but may have normal banking relationships with the Depositor
or any obligor and their respective Affiliates with respect to the Securities)
organized and doing business under the laws of any State or the United States,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by Federal or State authorities, and the long-term debt obligations
of which are rated in one of the four highest categories assigned long-term debt
obligations by each of the Rating Agencies. If such corporation or association
publishes reports of conditions at least annually, pursuant to law or to the
requirements of any supervising or examining authority, then the combined
capital and surplus of such

                                       53
<PAGE>   60
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of conditions so published. In
the event that at any time the Trustee shall cease to be eligible in accordance
with the terms of this Section 10.06, the Trustee shall resign immediately in
the manner and with the effect specified in Section 10.07.

         (b) The Trustee shall comply with Section 310(b) of the TIA.

         SECTION 10.07. Resignation or Removal of the Trustee

         (a) Subject to the last sentence of this paragraph (a), the Trustee may
at any time resign and be discharged from the Trust by giving written notice
thereof to the Depositor, the Swap Counterparty, the Swap Guarantor and all
Certificateholders. Upon receiving such notice of resignation, the Depositor,
with the consent of the Swap Counterparty and the Swap Guarantor (which consent
shall not be unreasonably withheld), shall as promptly as possible (and in any
event within 30 days after the date of such notice of resignation) appoint a
successor trustee by written instrument, in duplicate, which instrument shall be
delivered to the resigning Trustee and to the successor trustee. A copy of such
instrument shall be delivered to the Certificateholders, the Swap Counterparty
and the Swap Guarantor by the Depositor. If no successor Trustee has been so
appointed and has accepted appointment within such 30-day period, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee. Upon any appointment of a successor trustee pursuant to
this paragraph (a), the resigning Trustee shall be solely liable for (i) the
payment of such successor trustee's fees and expenses and (ii) provision of
adequate indemnities satisfactory to such successor trustee (it being understood
that the indemnification obligations of the Depositor pursuant to Section
10.05(b) shall inure to the benefit of such successor trustee, but that any
Extraordinary Trust Expense previously indemnified by the Depositor shall reduce
the Maximum Reimbursable Amount with respect to such Successor trustee on a
Dollar-for-Dollar basis). In the event that the Trustee fails to satisfy the
conditions contained in clauses (i) and (ii) above, the Trustee may not resign
pursuant to this paragraph (a).

         (b) If at any time the Trustee ceases to be eligible under Section
10.06 and fails to resign after a written request therefor by the Depositor, or
if at any time the Trustee becomes incapable of acting, or is adjudged bankrupt
or insolvent, or a receiver of the Trustee or of its property is appointed, or
any public officer takes charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may, with the consent of the Swap Counterparty and the Swap Guarantor
(which consent shall not be unreasonably withheld), remove the Trustee and
appoint a successor trustee by written instrument, in duplicate, which
instrument shall be delivered to the Trustee so removed and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
the Swap Counterparty and the Swap Guarantor by the Depositor.

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<PAGE>   61
         (c) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the terms of this Section 10.07 shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 10.08.

         SECTION 10.08. Successor Trustee

         (a) Any successor trustee appointed as provided in Section 10.07 shall
execute, acknowledge and deliver to the Depositor and the predecessor trustee an
instrument accepting such appointment under the Trust Agreement, and thereupon
the resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor under the Trust Agreement, with like effect as if originally named
as trustee in the Trust Agreement. The predecessor trustee shall deliver to the
successor trustee all documents and statements held by it under the Trust
Agreement, and the Depositor and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in the successor trustee all
such rights, powers, duties and obligations. No successor trustee shall accept
appointment as provided in this Section 10.8 unless at the time of such
acceptance it is eligible to serve as a trustee hereunder pursuant to Section
10.06.

         (b) Upon acceptance of appointment by a successor trustee as provided
in this Section 10.08, the Depositor shall transmit notice of the succession of
such trustee under the Trust Agreement to all Certificateholders in the manner
set forth in Section 12.05.

         SECTION 10.09. Merger or Consolidation of Trustee

         Any corporation or association into which the Trustee may be merged or
converted or with which it may be consolidated or any corporation or association
resulting from any merger, conversion or consolidation to which the Trustee may
be a party, or any corporation or association succeeding to the business of the
Trustee, shall be the successor of the Trustee under the Trust Agreement,
provided such corporation or association is eligible to serve as a trustee
pursuant to Section 10.06, without the execution or filing of any paper or any
further act on the part of any of the parties to the Trust Agreement, anything
in the Trust Agreement to the contrary notwithstanding.

         SECTION 10.10. Appointment of Co-Trustee

         (a) Notwithstanding any other terms of the Trust Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any party of the Trust Property may at the time be located, the Depositor
and the Trustee acting jointly shall have the power and shall execute and
deliver all instruments to appoint one or more Persons approved by the Trustee
to act as co-trustee or co-trustees, jointly with the Trustee, of all or any
part of the Trust Property, and to vest in such Person or Persons, in such
capacity, such title to the Trust Property, or any part thereof, and, subject to
the other terms of this Section 10.10, such powers, duties, obligations, rights
and trusts as the

                                       55
<PAGE>   62
Depositor and the Trustee may consider necessary or desirable. If the Depositor
does not join in such appointment within 15 days after receiving a request so to
do, the Trustee alone shall have the power to make such appointment. No
co-trustee under the Trust Agreement shall be required to be eligible to serve
as a trustee pursuant to Section 10.06 and no notice to Certificateholders of
the appointment of a co-trustee or co-trustees shall be required under this
Section 10.10.

         (b) In the case of any appointment of a co-trustee pursuant to this
Section 10.10, all rights, powers, duties and obligations conferred or imposed
upon the Trustee shall be conferred or imposed upon and exercised or performed
by the Trustee and such co-trustee jointly, except to the extent that under any
law of any jurisdiction in which any particular act or acts are to be performed
by the Trustee, the Trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to such Trust Property or any portion thereof in
any such jurisdiction) shall be exercised and performed by such co-trustee at
the direction of the Trustee.

         (c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the co-trustees, as effectively as if given
to each of them. Every instrument appointing any co-trustee shall refer to the
Trust Agreement and the conditions of this Article X. Each co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, jointly with the Trustee subject to
all the terms of the Trust Agreement, specifically including every provision of
the Trust Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Each such instrument shall be filed with
the Trustee.

         (d) Any co-trustee may at any time constitute the Trustee, its agent or
attorney-in-fact, with full power and authority, to the extent not prohibited by
applicable law, to engage in any lawful act under or in respect of the Trust
Agreement on its behalf and in its name. If any co-trustee shall die, become
incapable of acting, resign or be removed, all its estates, properties, rights,
remedies and trusts shall vest in and be exercised by the Trustee, to the extent
permitted by applicable law, without the appointment of a new or successor
co-trustee.

         SECTION 10.11. Representations and Warranties of Trustee

         (a) The Trustee represents and warrants, for the benefit of the
Depositor and the Certificateholders, that, as of the Closing Date or as of such
other date specified in the Trust Agreement:

                  (i) the Trustee is a corporation duly organized, validly
         existing and in good standing under the laws of its jurisdiction of
         incorporation or association;

                  (ii) the Trustee has full power, authority and right to
         execute, deliver and perform its duties and obligations under the Trust
         Agreement, the Certificates and

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<PAGE>   63
         the Swap Agreement and has taken all necessary action to authorize the
         execution, delivery and performance by it (or, with respect to the
         Certificates, by an Authenticating Agent on its behalf, if applicable)
         of the Trust Agreement, the Certificates and the Swap Agreement;

                  (iii) each of the Trust Agreement, the Certificates and the
         Swap Agreement has been duly executed and delivered by the Trustee (or,
         with respect to the Certificates, by an Authenticating Agent on its
         behalf, if applicable) and each of the Trust Agreement, the
         Certificates and the Swap Agreement constitutes the legal, valid and
         binding obligation of the Trustee, enforceable in accordance with the
         terms thereof, subject to bankruptcy, insolvency, fraudulent transfer,
         reorganization, moratorium or similar laws of general applicability
         relating to or affecting creditors' rights and to general equity
         principles;

                  (iv) the execution and delivery of the Trust Agreement, the
         Certificates and the Swap Agreement by the Trustee and its performance
         of and compliance with the terms of the Trust Agreement, the
         Certificates and the Swap Agreement will not violate the Trustee's
         articles of incorporation, association or other constitutive documents
         or by-laws or constitute a default under, or result in the breach or
         acceleration of, any material contract, agreement or other instrument
         to which the Trustee is a party or by which the Trustee is bound or to
         which the Trustee or any of its assets is subject;

                  (v) the Trustee is not in violation, and the execution and
         delivery of the Trust Agreement, the Certificates and the Swap
         Agreement by the Trustee and its performance and compliance with the
         terms of the Trust Agreement, the Certificates and the Swap Agreement
         will not constitute a violation, of any order or decree of any court or
         any order or regulation of any Federal, State, municipal or
         governmental agency having jurisdiction over the Trustee or its
         properties, which violation would reasonably be expected to have a
         material adverse effect on the condition (financial or otherwise) or
         operations of the Trustee or its properties or on the performance of
         its duties thereunder;

                  (vi) there are no actions or proceedings against, or
         investigations of, the Trustee pending, or, to the knowledge of the
         Trustee, threatened, before any court, administrative agency or other
         tribunal (A) that could reasonably be expected to prohibit its entering
         into the Trust Agreement or the Swap Agreement or to render the
         Certificates invalid, (B) seeking to prevent the issuance of the
         Certificates or the consummation of any of the transactions
         contemplated by the Trust Agreement or the Swap Agreement or (C) that
         could reasonably be expected to prohibit or materially and adversely
         affect the performance by the Trustee of its obligations under, or the
         validity or enforceability of, the Trust Agreement, the Certificates
         and the Swap Agreement; and

                                       57
<PAGE>   64
                  (vii) no consent, approval, authorization or order of any
         court or governmental agency or body is required for the execution,
         delivery and performance by the Trustee of, or compliance by the
         Trustee with, the Trust Agreement, the Certificates and the Swap
         Agreement, or for the consummation of the transactions contemplated by
         the Trust Agreement or the Swap Agreement, except for such consents,
         approvals, authorizations and orders, if any, that have been obtained
         prior to the Closing Date.

         (b) Within 30 days of discovery or receipt of notice by the Trustee
that any of its representations and warranties in paragraph (a) above is
inaccurate in any material respect, the Trustee shall take such steps as may be
required to ensure that the relevant representation and warranty becomes
accurate within two Business Days from the earlier of discovery or receipt of
notice by it of such inaccuracy. The Trustee shall promptly cure such breach in
all material respects.

         SECTION 10.12. Non-Petition

         Prior to the date that is one year and one day after all distributions
in respect of the Certificates have been made, neither the Trustee nor the
Depositor shall take any action or institute any proceeding against the other
under the U.S. Bankruptcy Code or any other liquidation, insolvency, bankruptcy,
moratorium, reorganization or similar law applicable to either of them, now or
hereafter in effect, or which would be reasonably likely to cause the other to
be subject to, or seek the protection of, any such law.

                                   ARTICLE XI

                                   Termination

         SECTION 11.01. Termination of the Trust

         (a) Except as otherwise provided in Article IX, the respective
obligations and responsibilities of the Depositor and the Trustee under the
Trust Agreement (other than the obligations imposed by Section 10.05(b) and the
obligations of the Trustee to provide reports and other information under the
Trust Agreement and to make distributions to the Certificateholders in
accordance with paragraph (c) below) shall terminate upon the distribution to
the Certificateholders of all amounts held in the Certificate Account and
required to be paid to the Certificateholders pursuant to the Trust Agreement;
provided, however, that in no event shall the Trust continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Queen Elizabeth II of England, living on the date of the Trust Agreement.

         (b) Written notice of termination shall be provided to each
Certificateholder, the Depositor, the Swap Counterparty, the Swap Guarantor and
the Rating Agencies within 10 Business Days from such termination, unless such
termination occurs on the Scheduled Final Distribution Date.

                                       58
<PAGE>   65
         (c) On the Scheduled Final Distribution Date, the Trustee shall
distribute to each holder presenting and surrendering its Certificates (or
delivering such security or indemnity to the Trustee as the Trustee may require
to save the Trustee and hold the Trustee harmless) the amount distributable on
such date pursuant to Section 4.01. Any funds not distributed on such date shall
be set aside and held in trust for the benefit of Certificateholders either (i)
not presenting and surrendering their Certificates in the aforesaid manner or
(ii) not delivering such security or indemnity to the Trustee, and shall be
disposed of in accordance with this Section 11.01(c) and Section 4.01.
Immediately following the deposit of such funds, the Trust shall terminate.

                                  ARTICLE XII

                               Miscellaneous Terms

         SECTION 12.01. Amendment of Trust Agreement

         (a) The Trust Agreement may be amended from time to time by the
Depositor and the Trustee without the consent of any of the Certificateholders,
upon delivery by the Depositor of an Opinion of Counsel acceptable to the
Trustee to the effect that such amendment will not adversely affect in any
material respect the interests of any Certificateholder, for any of the
following purposes: (i) to cure any ambiguity; (ii) to correct or supplement any
provision which may be inconsistent with any other provision or with the Terms
Schedule; (iii) to add or supplement Credit Support for the benefit of
Certificateholders; (iv) to add to the covenants, restrictions or obligations of
the Depositor or the Trustee for the benefit of any Certificateholders; (v) to
add, change or eliminate any other provisions so long as (A) any such addition,
change or elimination would not, as evidenced by an Opinion of Counsel, affect
the tax status of the trust or result in a sale or exchange of any Certificate
for tax purposes and (B) the Trustee has received written confirmation from each
Rating Agency that such addition, change or elimination will not cause such
Rating Agency to qualify, reduce or withdraw its then current rating of the
Certificates; (vi) to comply with any requirements imposed by the Code or other
applicable law; (vii) to amend the definitions of Trigger Amount and Maximum
Reimbursable Amount so as to increase, but not decrease, the respective amounts
contained in such definitions or to otherwise amend or waive the terms of
Section 10.05(b) in any manner which shall not adversely affect the
Certificateholders in any material respect; (viii) to evidence and provide for
the acceptance of appointment under the Trust Agreement by a successor Trustee;
or (ix) to add or change any of the terms of the Trust Agreement as may be
necessary to provide for or facilitate the administration of the Trust;
provided, however, that in the case of any amendment pursuant to any of clauses
(i) through (viii) above, the Rating Agency Condition shall be satisfied with
respect to such amendment.

         (b) In addition to the foregoing, the Trust Agreement may also be
modified or amended from time to time by the Depositor and the Trustee, with the
consent of Certificateholders representing more than 50% of the Principal
Balance (or Notional

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<PAGE>   66
Amount, as applicable), for the purpose of adding, changing or eliminating any
provision or modifying the rights of Certificateholders.

         (c) Certificateholders representing more than 50% of the Principal
Balance (or Notional Amount, as applicable), may, on behalf of all
Certificateholders (i) waive compliance by the Depositor or the Trustee with any
restrictive provisions of the Trust Agreement before the time for such
compliance or (ii) waive any past default under the Trust Agreement, except for
(A) any such default resulting from any failure to distribute amounts received
as principal of (and premium, if any) or any interest on any Certificate and (B)
any such default in respect of any covenant or provision the modification or
amendment of which would require the consent of the holder of each outstanding
Certificate affected by the default.

         (d) Promptly after the execution of any amendment, modification or
waiver made in accordance with paragraph (a), (b) or (c) above, the Trustee
shall furnish a copy of such amendment, modification or waiver to each
Certificateholder.

         (e) Notwithstanding the foregoing, no amendment or modification to the
Trust Agreement shall be permitted unless the Trustee first receives an Opinion
of Counsel that such amendment or modification will not alter the classification
of the Trust for U.S. federal income tax purposes.

         SECTION 12.02. Counterparts

         The Trust Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute but one and the same instrument.

         SECTION 12.03. Limitation on Rights of Certificateholders

         (a) The death or incapacity of any Certificateholder shall not operate
to terminate the Trust Agreement or the Trust, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations and liabilities of the
parties thereto or any of them.

         (b) Except as otherwise expressly provided herein, no Certificateholder
shall have any right to control the operation and management of any Trust
Property, or the obligations of the parties with respect thereto, nor shall
anything set forth in the Trust Agreement, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to the Trust Agreement pursuant to any provision
thereof.

                                       60
<PAGE>   67
         (c) No Certificateholder shall have any right by virtue of any
provision of the Trust Agreement to institute any Proceeding under or with
respect to the Trust Agreement.

         SECTION 12.04. Governing Law; Jurisdiction

         The Trust Agreement and each Certificate issued thereunder shall be
governed by, and construed in accordance with, the laws of the State of New
York.

         The Federal and State courts in the Borough of Manhattan in The City of
New York shall have non-exclusive jurisdiction in respect of any Proceeding
arising out of or relating to the Trust Agreement or any Certificate.

         SECTION 12.05. Notices

         All directions, demands and notices under the Trust Agreement shall be
in writing and shall be delivered to the offices of the Trustee or the
Depositor, as the case may be, specified in the offering documents for the
Certificates. Unless otherwise specified in the Terms Schedule, any notice
required to be furnished to a holder of a Registered Certificate shall be (i)
sent by facsimile to such number as may be specified therefor by such holder to
the Trustee or (ii) mailed to the address of such holder set forth in the
applicable Certificate Register. Any notices so sent by facsimile shall be
effective upon confirmation (including electronic confirmation) of effective
transmission. Any notice so mailed within the time prescribed in the Trust
Agreement shall be presumed to have been given when mailed, whether or not the
Certificateholder actually receives such notice.

         Notice shall be presumed to be furnished to holders of Bearer
Certificates (i) if published in a leading daily newspaper of general
circulation in such city or cities as may be specified in such Certificates on a
Business Day and (ii) in the case of a Global Certificate, if also delivered to
Euroclear or Clearstream, as applicable, for communication by them to the
persons shown in their respective records as having interests therein. If it
becomes impracticable to publish any notice to holders of Bearer Certificates as
provided above, then such notice shall be given in such manner as may be
approved by the Trustee and the Depositor.

         SECTION 12.06. Severability of Terms

         If any one or more of the covenants, agreements or terms of the Trust
Agreement for any reason whatsoever is held invalid or unenforceable, then such
covenants, agreements or terms shall be deemed severable from the remaining
covenants, agreements or terms of the Trust Agreement and such invalidity or
unenforceability shall in no way affect the validity or enforceability of the
other terms of the Trust Agreement or of the Certificates or the rights of the
holders thereof.

                                       61
<PAGE>   68
         SECTION 12.07. Perfection of Swap Counterparty Security Interest

         At the request of the Swap Counterparty, the Trustee shall assist the
Swap Counterparty in the perfection of the security interest in the Trust
Property described in Section 3.07 and granted by the Trust to the Counterparty
under the Swap Agreement.

         SECTION 12.08. No Recourse

         Each Certificateholder by accepting a Certificate acknowledges that
such Certificateholder's Certificates represent beneficial interests in the
Trust only and do not represent interests in or obligations of the Depositor,
the Trustee, the Swap Counterparty, the Swap Guarantor or any Affiliate of the
foregoing Persons, and there shall be no recourse against any such Persons or
their respective assets, except as may be expressly set forth in the Trust
Agreement, the Swap Agreement or the Certificates.

         SECTION 12.09. Conflict With Trust Indenture Act

         (a) The Trust Agreement shall be subject to the provisions of the TIA
that are required to be a part of the Trust Agreement and shall, to the extent
applicable, be governed by those provisions. If any provision of the Trust
Agreement limits, qualifies or conflicts with a provision of the TIA which is
required under the TIA to be a part of and govern the Trust Agreement, the
latter provision shall control. If any provision of the Trust Agreement modifies
or excludes any provision of the TIA which may be so modified or excluded, the
latter provision shall be deemed to apply to the Trust Agreement as so modified
or to be excluded, as the case may be.

         (b) Without limiting the generality of paragraph (a) above, the
provisions of TIA Sections 310 through 317 that impose duties on any Person
(including the provisions automatically deemed to be included therein unless
expressly excluded by the Trust Agreement) are a part of and govern the Trust
Agreement, whether or not physically contained therein.

         (c) Except as expressly provided in the Trust Agreement, all provisions
therein specifically referencing the TIA shall be inapplicable until such time
as the Trust Agreement is qualified under the TIA.

                                       62
<PAGE>   69
                                                                       EXHIBIT A

                             FORM OF TRUST AGREEMENT

         TRUST AGREEMENT made as of the __ day of _______, 20__, by and between
Credit And Repackaging Vehicle Corporation, as depositor (the "Depositor"), and
Wells Fargo Bank Minnesota, National Association, as trustee (the "Trustee"),
consisting of this agreement and Schedules I, II and III attached hereto, which
Schedules are made a part hereof and are hereinafter referred to collectively as
the "Terms Schedule". The terms of the Standard Terms for Trust Agreements,
dated July --, 2001 (the "Standard Terms"), agreed between the Depositor and the
Trustee are, except to the extent otherwise expressly specified herein, hereby
incorporated by reference herein in their entirety with the same force and
effect as though set forth herein. Capitalized terms used and not otherwise
defined herein shall have the meanings assigned to them in the Standard Terms.
The words "herein", "hereof", "hereunder", "this Trust Agreement" and other
words of similar import refer to this agreement including the Terms Schedule and
the Standard Terms so incorporated by reference.

         WHEREAS, the Depositor and the Trustee desire to establish the trust
identified in Schedule I attached hereto (the "Trust") for the primary purposes
of (i) holding the Securities, (ii) entering into the Swap Agreement with the
Swap Counterparty and (iii) issuing the Certificates;

         WHEREAS, the Depositor desires that the beneficial interests in the
Trust be divided into transferable fractional shares, such shares to be
represented by the Certificates;

         WHEREAS, the Depositor desires to appoint the Trustee as trustee of the
Trust and the Trustee desires to accept such appointment;

         WHEREAS, the Depositor desires to transfer to the Trust, without
recourse, and the Trust desires to acquire, all of the Depositor's right, title
and interest in, to and under the Securities and other property identified in
Schedule II to the Trust Agreement (the "Trust Property"); and

         WHEREAS, the Trust desires to acquire the Trust Property specified
herein in consideration for issuing Certificates having an initial Principal
Balance (or Notional Amount, as applicable) identified in Schedule I attached
hereto, subject to the terms and conditions specified in the Trust Agreement;

         NOW, THEREFORE, In consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties hereto hereby agree
as follows:

1.       The Depositor hereby appoints the Trustee as trustee of the Trust and
requests the Trustee to receive (i) the Securities and any related documents,
(ii) the Swap Agreement,

                                      A-1
<PAGE>   70
(iii) any Swap Guarantee and (iv) the documents specified in the Swap Agreement
(in Part 3 of the Schedule to the ISDA Master Agreement).

2.       The Trustee hereby accepts the appointment referred to in Section 1 and
declares that it will hold the assets referred to in Section 1 and all other
assets comprising the Trust Property in trust, for the exclusive use and benefit
of all present and future Certificateholders and for the purposes and subject to
the terms and conditions set forth in the Trust Agreement.

3.       It is intended that the Trust be classified as a [grantor trust] for
U.S. federal income tax purposes and the Trustee hereby agrees, and each
Certificateholder by acquiring one or more Certificates agrees, to take no
action or reporting position that is inconsistent with such classification.

4.       This agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

5.       This agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute but one and the same instrument.

         IN WITNESS WHEREOF, each of the Depositor and the Trustee has caused
this instrument to be executed by its duly authorized officer as of the date
first written above.

                                  CREDIT AND REPACKAGING VEHICLE
                                       CORPORATION

                                  By:________________________________________
                                       Name:
                                       Title:

                                  WELLS FARGO BANK MINNESOTA,
                                       NATIONAL ASSOCIATION, as Trustee on
                                       behalf of the Trust identified in
                                       Schedule I hereto, and not in its
                                       individual capacity

                                  By: _______________________________________
                                       Name:
                                       Title:

       Attachments: Terms Schedule (consisting of Schedules I, II and III)

                                      A-2
<PAGE>   71
                                   SCHEDULE I

                        (Terms of Trust and Certificates)
  Trust:                             Public Credit and Repackaged Securities(SM)
                                     (PCARS)(SM) Trust Series -
  Class of Certificates:
  Date of Trust Agreement:
  Trustee:
  Notional Amount:
  Issue Price:
  Closing Date:
  Specified Currency:                [if not United States dollars]
  Exchange Rate Agent:               [if not Goldman Sachs]
  Business Day:
  Interest Rate:                     [Swap Rate] [other]
  Calculation Agent:                 [Swap Calculation Agent] [other]
  Rating:
  Rating Agencies:
  Method of Distribution:
  Scheduled Final Distribution Date:
  Distribution Date:
  Record Date:
  Allocation of Voting Rights:       [if not pro rata]
  Form of Certificate:               [Global/Definitive] [Registered/Bearer]
  Depositary:                        [if not DTC]
  Alternative ERISA Restrictions:    [Apply] [Do Not Apply]
  Deemed Representations:            [Apply] [Do Not Apply]
  Additional Trust Wind-Up Event:
  Trigger Amount:
  Maximum Reimbursable Amount:
  Exchangeable Series Terms:
  Depositor Optional Exchange:
  Terms of Retained Interest:
  Callable Series:
  Call Right Terms and Notice:       [if other than as specified in
                                       Section 12.05]
  Notice Mechanics:
  Additional Reports:                [Accountants' Statement]
                                     [Statement of Officers of the Trustee]
  Other Terms:

                                     A-I-1
<PAGE>   72
                                   SCHEDULE II

                            (Terms of Trust Property)

Concentrated Securities:
Other Securities:
Security Issuer:
Principal Amount:
Security Rate:
Credit Ratings:
Listing:
Security Issuance Agreement:
Events of Security Default:
Form of Security:
Currency of Denomination:
Acquisition Price by Trust:               Certificates having an initial
                                          [Principal Balance] [Notional
                                          Amount] of [$______].
Security Payment Date:
Original Issue Date:
Maturity Date:
Sinking Fund Terms:
Redemption Terms:
CUSIP No./ISIN No.:
Security Trustee:
Available Information Regarding the       [[name of issuer of Securities] is
Security Issuer:                          subject to the informational
                                          requirements of the Securities
                                          Exchange Act of 1934, as amended, and
                                          in accordance therewith files, reports
                                          and other information with the
                                          Securities and Exchange Commission
                                          (the "Commission"). Such reports and
                                          other information can be inspected and
                                          copied at the public reference
                                          facilities maintained by the
                                          Commission at 450 Fifth Street, N.W.,
                                          Washington, D.C. 20549 and at the
                                          Regional Offices of the Commission, at
                                          7 World Trade Center, 13th Floor, New
                                          York, New York 10048 and Northwest
                                          Atrium Center, 500 West Madison
                                          Street, Chicago, Illinois 60661.
                                          Copies of such materials can be
                                          obtained from the Public Reference
                                          Section of the Commission at 450 Fifth
                                          Street, N.W., Washington, D.C. 20549
                                          at prescribed rates.] [In addition,
                                          [attached to the Prospectus is a copy
                                          of] [name of issuer of Securities] has
                                          also filed with the Commission] a
                                          Prospectus, dated ________ __, ____,
                                          relating to the original offering of
                                          the Securities.]

                                     A-II-1

<PAGE>   73

Cut-Off Date:
Selling Agent:                            [if not Goldman Sachs]
Credit Support:
Credit Support Default:
Other Trust Property:

                                     A-II-2
<PAGE>   74
                                  SCHEDULE III

                                (Swap Agreement)

  Swap Agreement:
  Swap Counterparty:                      Party A to the Swap Agreement
  Swap Guarantee (if any):
  Swap Notional Amount:
  Swap Payment Date:                      [Each Payment Date specified for Party
                                          A]
  Swap Rate:                              [The [Fixed][Floating] Rate for the
                                          applicable Calculation Period under
                                          the Swap Agreement, plus or minus the
                                          specified spread].

                                    A-III-1
<PAGE>   75
                                                                     EXHIBIT B-2

                               FORM OF CERTIFICATE

[In the case of a Global Certificate representing Registered Certificates,
insert the following - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS
CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT.]

[In addition, in the case of a Global Certificate for which DTC is acting as
Depositary, insert the following - UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO A PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

[In the case of a Bearer Certificate, insert the following - ANY U.S. PERSON WHO
HOLDS THIS OBLIGATION SHALL BE SUBJECT TO LIMITATIONS UNDER U.S. INCOME TAX
LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE
INTERNAL REVENUE CODE.]

                                     B-2-2
<PAGE>   76
Certificate Number -                             Number of Trust Certificates -
                                                             Fractional Share -

                                 CUSIP NO. [__]

                             Certificate Evidencing
   Public Credit and Repackaged Securities(SM) (PCARS)(SM) Trust Certificates
                                    Series -

         This certifies that [in the case of a Registered Certificate, insert
the following - - (the "Holder") is the registered] [in the case of a Bearer
Certificate, insert the following - the bearer hereof (the "Bearer") is the]
owner of - Certificates of Public Credit and Repackaged Securities(SM)
(PCARS)(SM) Trust Series - (the "Trust") representing an undivided fractional
interest in the Trust Property (the "Certificates").

         The designations, rights, privileges, restrictions, preferences and
other terms and provisions of the Certificates evidenced hereby are set forth
in, and this certificate and such Certificates are issued and shall in all
respects be subject to the terms and provisions of, the Trust Agreement of the
Trust, dated as of --, by and between Credit and Repackaging Vehicle
Corporation, as depositor, and Wells Fargo Bank Minnesota, National Association,
as trustee (the "Trustee"), as the same may be amended or supplemented from time
to time (the "Trust Agreement"). The Trustee will furnish a copy of the Trust
Agreement to the [Holder] [Bearer] without charge upon written request to the
Trustee at its principal place of business or registered office. All capitalized
terms used and not otherwise defined herein shall have the respective meanings
assigned to them in the Trust Agreement.

         The amount due on the Certificates evidenced hereby on any Distribution
Date shall be determined by multiplying the Fractional Share stated on this
certificate by the amount of the Available Funds to be distributed on such
Distribution Date.

         [If applicable, specify principal terms of any Call Right or right of
optional exchange.]

         Upon execution of the certificate of authentication hereon by a
Responsible Officer of the Trustee or an authorized officer of the
Authenticating Agent and receipt of this certificate by the [Holder] [Bearer],
the [Holder] [Bearer] shall be bound by the Trust Agreement and entitled to the
benefits thereunder.

         [In the case of a Registered Certificate, insert the following - The
Certificates evidenced hereby are transferable on the books and records of the
Trust, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed or accompanied by a written instrument of transfer in
proper form, in accordance with Section 5.04 of the Trust Agreement.]

                                     B-2-3
<PAGE>   77
         This certificate and the Certificates evidenced hereby shall be
governed by, and construed in accordance with, the laws of the State of New
York.

         IN WITNESS WHEREOF, the Trustee, on behalf of the Trust, and not in its
individual capacity, has caused this certificate to be duly executed.

                                      PUBLIC CREDIT AND REPACKAGED
                                      SECURITIES(SM) (PCARS)(SM) TRUST SERIES -

                                      By:   Wells Fargo Bank Minnesota, National
                                            Association, as Trustee

                                      By:   ______________________________
                                            Authorized Signatory
DATED:

[SEAL]

                                     B-2-4
<PAGE>   78
                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificate Documents referred to in the
within-mentioned Trust Agreement.

                                    [________________________], [Authenticating
                                     Agent for the] [as] Trustee

                                     By:   ______________________________
                                           Authorized Signatory

                                     B-2-5
<PAGE>   79
                            [OPTION TO ELECT EXCHANGE

         The undersigned hereby irrevocably requests and instructs the Trustee
to exchange the Certificates represented by the attached certificate (or such
portion of the Certificates specified below) for the Trust Property in which the
Certificates evidence (or such portion thereof evidences) a beneficial interest,
pursuant to their terms and in accordance with the Trust Agreement, to be
delivered to the undersigned, at

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
        (Please print or typewrite name and address of the undersigned.)

         If less than all of the Certificates represented by the attached
certificate are to be exchanged, specify below the portion thereof to be
exchanged and the denomination (which must be an authorized denomination) of
each certificate to be issued for the portion not being exchanged. (In the
absence of any such specification, one certificate will be issued for any
portion not being exchanged).

Portion to be exchanged (expressed as a number of Certificates): _______
Denomination(s) of certificates to be issued for portion not being exchanged:
_______

Date:_____________

                                            ____________________________
                                            [Signature]]

                                     B-2-6
<PAGE>   80
                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned assigns and transfers the
Certificates to:

_______________________________________________________________________________
        (Insert assignee's social security or tax identification number)

_______________________________________________________________________________

_______________________________________________________________________________
                    (Insert address and zip code of assignee)

and irrevocably appoints ___________________________________________________

_______________________________________________________________________________

agent to transfer the Certificates on the books of the Trust. The agent may
substitute another individual to act for him or her.

Date:  __________________

Signature:_______________________________________________________________
    (Sign exactly as your name appears on the other side of this certificate)

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                     B-2-7

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