Document:

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                                  Exhibit 10.29
          Registrant's Amended and Restated 1999 Equity Incentive Plan

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                              ESCALON MEDICAL CORP.

                              AMENDED AND RESTATED
                           1999 EQUITY INCENTIVE PLAN

         1.       PURPOSE. The purpose of the Escalon Medical Corp. 1999 Equity
Incentive Plan is to enhance the ability of Escalon Medical Corp. (the
"Company") and any subsidiaries to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional
incentives to such personnel and to promote the success of the Company. To
accomplish these purposes, this Plan provides a means whereby employees,
directors and consultants may receive stock options ("Options") to purchase the
Company's Common Stock, no par value, (the "Common Stock").

         2.       ADMINISTRATION.

         (a)      COMPOSITION OF THE COMMITTEE. This Plan shall be administered
by a committee (the "Committee"), which shall be appointed by and serve at the
pleasure of the Company's Board of Directors (the "Board"). The Committee shall
be comprised of two or more members of the Board. Each member of the Committee
shall be (i) a "non-employee director" within the meaning of Rule 16b-3 under
the Securities Exchange Act of 1934 (the "Exchange Act") and (ii) an "outside
director" within the meaning of Section 162(m) of the Internal Revenue Code of
1986, as amended (the "Code"). Subject to the foregoing, from time to time the
Board may increase or decrease the size of the Committee, appoint additional
members thereof, remove members (with or without cause), appoint new members in
substitution therefor, fill vacancies or remove all members of the Committee and
thereafter directly administer this Plan.

         (b)      AUTHORITY OF THE COMMITTEE. The Committee shall have full and
final authority, in its sole discretion, to interpret the provisions of this
Plan and to decide all questions of fact arising in its application; to
determine the employees, directors and consultants to whom awards shall be made
and the type, amount, size and terms of each such award; to determine the time
when awards shall be granted; and to make all other determinations necessary or
advisable for the administration of this Plan. The Committee shall have the
authority to adopt, amend and rescind such rules, regulations and procedures as,
in its opinion, may be advisable in the administration of this Plan, including,
without limitation, rules, regulations and procedures that: (i) deal with
satisfaction of an optionee's tax withholding obligations pursuant to Section 13
hereof, (ii) include arrangements to facilitate an optionee's ability to borrow
funds for the payment of the exercise price of an Option, if applicable, from
securities' brokers and dealers, and (iii) include arrangements that provide for
the payment of some or all of an Option's exercise price by delivery of
previously owned shares of Common Stock or other property and/or by withholding
some of the shares of Common Stock being acquired upon exercise of an Option.
All decisions, determinations and interpretations of the Committee shall be
final and binding on all optionees and all other holders of Options granted
under this Plan.

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         (c)      AUTHORITY OF THE BOARD. Notwithstanding anything to the
contrary set forth in this Plan, all authority granted hereunder to the
Committee may be exercised at any time and from time to time by the Board. All
decisions, determinations and interpretations of the Board shall be final and
binding on all optionees and all other holders of Options granted under this
Plan.

         3.       STOCK SUBJECT TO THIS PLAN. Subject to Section 16 hereof, the
shares that may be issued under this Plan shall not exceed in the aggregate
1,035,000 shares of Common Stock. Such shares may be authorized and unissued
shares or shares issued and subsequently reacquired by the Company. Except as
otherwise provided herein, any shares subject to an Option that for any reason
expires or is terminated unexercised as to such shares shall again be available
under this Plan.

         4.       ELIGIBILITY TO RECEIVE OPTIONS. Persons eligible to receive
Options under this Plan shall be limited to those consultants, directors,
officers and other employees of the Company and any subsidiary (as defined in
Section 424 of the Code or any amendment or substitute thereto), who are in
positions in which their decisions, actions and counsel significantly impact
upon the profitability and success of the Company and any subsidiary. Directors
of the Company who are not also employees of the Company or any subsidiary and
consultants shall not be eligible to be awarded Incentive Stock Options (as
defined in Section 5 hereof). Notwithstanding anything to the contrary set forth
in this Plan, the maximum number of shares of Common Stock for which Options may
be granted to any employee in any calendar year shall be 100,000 shares.

         5.       TYPES OF OPTIONS. Grants may be made at any time and from time
to time by the Committee in the form of Options to purchase shares of Common
Stock. Options granted hereunder may be Options that are intended to qualify as
incentive stock options within the meaning of Section 422 of the Code or any
amendment or substitute thereto ("Incentive Stock Options") or Options that are
not intended to so qualify ("Nonqualified Stock Options").

         6.       OPTION AGREEMENTS. Options for the purchase of Common Stock
shall be evidenced by written agreements in such form not inconsistent with this
Plan as the Committee shall approve from time to time. The Options granted
hereunder may be evidenced by a single agreement or by multiple agreements, as
determined by the Committee in its sole discretion. Each Option agreement shall
contain in substance the following terms and conditions:

         (a)      TYPE OF OPTION. Each Option agreement shall identify the
Options represented thereby as Incentive Stock Options or Nonqualified Stock
Options, as the case may be.

         (b)      OPTION PRICE. Each Option agreement shall set forth the
purchase price of the Common Stock purchasable upon the exercise of the Option
evidenced thereby. Subject to the limitation set forth in Section 6(d)(ii)
hereof, the purchase price of the

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Common Stock subject to an Incentive Stock Option shall be not less than 100% of
the fair market value of such stock on the date the Option is granted, as
determined by the Committee, but in no event less than the par value of such
stock. The purchase price of the Common Stock subject to a Nonqualified Stock
Option shall be not less than 85% of the fair market value of such stock on the
date the Option is granted, as determined by the Committee. For this purpose,
fair market value on any date shall mean the closing price of the Common Stock,
as reported in The Wall Street Journal or if not so reported, as otherwise
reported by the National Association of Securities Dealers Automated Quotation
("Nasdaq") System, or if the Common Stock is not reported by Nasdaq, the fair
market value shall be as determined by the Committee pursuant to Section 422 of
the Code.

         (c)      EXERCISE TERM. Each Option agreement shall state the period or
periods of time within which the Option may be exercised, in whole or in part,
which shall be such a period or periods of time as may be determined by the
Committee, provided that no Option shall be exercisable after ten years from the
date of grant thereof. The Committee shall have the power to permit an
acceleration of previously established exercise terms, subject to the
requirements set forth herein, upon such circumstances and subject to such terms
and conditions as the Committee deems appropriate.

         (d)      INCENTIVE STOCK OPTIONS. In the case of an Incentive Stock
Option, each Option agreement shall contain such other terms, conditions and
provisions as the Committee determines necessary or desirable in order to
qualify such Option as a tax-favored Option (within the meaning of Section 422
of the Code or any amendment or substitute thereto or regulation thereunder)
including without limitation, each of the following, except that any of these
provisions may be omitted or modified if it is no longer required in order to
have an Option qualify as a tax-favored Option within the meaning of Section 422
of the Code or any substitute therefor:

                  (i)      The aggregate fair market value (determined as of the
date the Option is granted) of the Common Stock with respect to which Incentive
Stock Options are first exercisable by any employee during any calendar year
(under all plans of the Company) shall not exceed $100,000.

                  (ii)     No Incentive Stock Options shall be granted to any
employee if, at the time the Option is granted, the employee owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company or its parent or its subsidiaries unless, at the time such
Option is granted, the Option price is at least 110% of the fair market value of
the stock subject to the Option and, by its terms, the Option is not exercisable
after the expiration of five years from the date of grant.

                  (iii)    No Incentive Stock Options shall be exercisable more
than three months (or one year, in the case of an employee who dies or becomes
disabled within the meaning of Section 72(m)(7) of the Code or any substitute
therefor) after termination of employment.

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         (e)      SUBSTITUTION OF OPTIONS. Options may be granted under this
Plan from time to time in substitution for stock options held by directors,
consultants and employees of other corporations who are about to become, and who
do concurrently with the grant of such options become, directors, consultants or
employees of the Company or a subsidiary as a result of a merger or
consolidation of the employing corporation with the Company or a subsidiary, or
the acquisition by the Company or a subsidiary of the assets or capital stock of
the employing corporation or a subsidiary of the employing corporation. The
terms and conditions of the substitute options so granted may vary from the
terms and conditions set forth in this Section 6 to such extent as the Committee
at the time of grant may deem appropriate to conform, in whole or in part, to
the provisions of the stock options in substitution for which they are granted.

         7.       DATE OF GRANT. The date on which an Option shall be deemed to
have been granted under this Plan shall be the date of the Committee's
authorization of the Option or such later date as may be determined by the
Committee at the time the Option is authorized. Notice of the determination
shall be given to each individual to whom an Option is so granted within a
reasonable time after the date of such grant.

         8.       EXERCISE AND PAYMENT FOR SHARES. Options may be exercised in
whole or in part, from time to time, by giving written notice of exercise to the
Secretary of the Company, specifying the number of shares to be purchased,
except that no Option may be exercised in whole or in part during the first six
months after the Option is granted unless expressly permitted by the Committee.
The purchase price of the shares with respect to which an Option is exercised
shall be payable in full at the time notice is given in cash, Common Stock at
fair market value, or a combination thereof, as the Committee may determine from
time to time and subject to such terms and conditions as may be prescribed by
the Committee for such purpose. The Committee may also, in its discretion and
subject to prior notification to the Company by an optionee, permit an optionee
to enter into an agreement with the Company's transfer agent or a brokerage firm
of national standing whereby the optionee will simultaneously exercise the
Option and sell the shares acquired thereby through the Company's transfer agent
or such a brokerage firm and either the Company's transfer agent or the
brokerage firm executing the sale will remit the Company from the proceeds of
sale the exercise price of the shares as to which the Option has been exercised.

         9.       RIGHTS UPON TERMINATION OF SERVICE. In the event that an
optionee ceases to be a consultant, director, officer or employee of the Company
or any subsidiary, for any reason other than death, retirement, as hereinafter
defined, or disability (within the meaning of Section 72(m)(7) of the Code or
any substitute therefor), the optionee shall have the right to exercise the
Option during its term within a period of three months after such termination to
the extent that the Option was exercisable at the time of termination, or within
such other period, and subject to such terms and conditions as may be specified
by the Committee. In the event that an optionee dies, becomes disabled or, in
the case of any employee, retires prior to the expiration of his Option and
without having fully exercised his Option, the optionee or his successor shall
have the right to exercise the Option during its term within a period of one
year after termination of

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service due to death, disability (within the meaning of Section 72(m)(7) of the
Code) or, in the case of an employee, retirement, in each case only to the
extent that the Option was exercisable at the time of termination, or within
such other period, and subject to such terms and conditions as may be specified
by the Committee. As used in this Section 9, "retirement" means a termination of
employment by reason of an optionee's retirement at or after his earliest
permissible retirement date pursuant to and in accordance with his employer's
regular retirement plan or personnel practices. Notwithstanding the provisions
of Section 6(d)(iii) hereof, an Incentive Stock Option may be exercised more
than three months after termination of employment due to retirement, as provided
in this Section 9, but in that event, the Option shall lose its status as an
Incentive Stock Option and shall be treated as a Nonqualified Stock Option.

         10.      GENERAL RESTRICTIONS. Each Option granted under this Plan
shall be subject to the requirement that if at any time the Committee shall
determine that (i) the listing, registration or qualification of the shares of
Common Stock subject or related thereto upon any securities exchange or under
any state or federal law, or (ii) the consent or approval of any government
regulatory body, or (iii) an agreement by the recipient of an Option with
respect to the disposition of shares of Common Stock is necessary or desirable
as a condition of or in connection with the granting of such Option or the
issuance or purchase of shares of Common Stock thereunder, such Option shall not
be consummated in whole or in part unless such listing, registration,
qualification, consent, approval or agreement shall have been effected or
obtained free of any conditions not acceptable to the Committee.

         11.      RIGHTS OF A SHAREHOLDER. The recipient of any Option under
this Plan, unless otherwise provided by this Plan, shall have no rights as a
shareholder unless and until certificates for shares of Common Stock are issued
and delivered to him.

         12.      RIGHT TO TERMINATE EMPLOYMENT. Nothing contained in this Plan
or in any agreement entered into pursuant to this Plan shall confer upon any
optionee the right to continue in the employment of the Company or any
subsidiary or affect any right that the Company or any subsidiary may have to
terminate the employment of such optionee or consulting relationship with such
optionee.

         13.      WITHHOLDING. Whenever the Company proposes or is required to
issue or transfer shares of Common Stock under this Plan, the Company shall have
the right to require the recipient to remit to the Company an amount sufficient
to satisfy any federal, state or local withholding tax requirements prior to the
delivery of any certificate or certificates for such shares. If and to the
extent authorized by the Committee, in its sole discretion, an optionee may make
an election, by means of a form of election to be prescribed by the Committee,
to have shares of Common Stock that are acquired upon exercise of an Option
withheld by the Company or to tender other shares of Common Stock or other
securities of the Company owned by the optionee to the Company at the time of
exercise of an Option to pay the amount of tax that would otherwise be required
by law to be withheld by the Company as a result of any exercise of an Option.
Any such election shall be irrevocable and shall be subject to the disapproval
of the Committee at

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any time. Any securities so withheld or tendered will be valued by the Committee
as of the date of exercise.

         14.      NON-ASSIGNABILITY. No Option under this Plan shall be
assignable or transferable by the recipient thereof except by will or by the
laws of descent and distribution or by such other means as the Committee may
approve. During the life of the recipient such Option shall be exercisable only
by such person or by such person's guardian or legal representative.

         15.      NON-UNIFORM DETERMINATIONS. The Committee's determinations
under this Plan (including without limitation determinations of the persons to
receive Options, the form, amount and timing of such grants, the terms and
provisions of Options, and the agreements evidencing same) need not be uniform
and may be made selectively among persons who receive, or are eligible to
receive, grants of Options under this Plan whether or not such persons are
similarly situated.

         16.      ADJUSTMENTS.

         (a)      CHANGES IN CAPITALIZATION. Subject to any required action by
the shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and the number of shares of Common Stock that have been
authorized for issuance under this Plan but as to which no Options have yet been
granted or which have been returned to this Plan upon cancellation or expiration
of an Option, as well as the price per share of Common Stock covered by each
such outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Committee, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

         (b)      DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, all outstanding Options will
terminate immediately prior to the consummation of such proposed action, unless
otherwise provided by the Committee. The Committee may, in the exercise of its
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Committee and give each Option holder the right to exercise
his Option as to all or any part of the shares of Common Stock covered by the
Option, including shares as to which the Option would not otherwise be
exercisable.

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         (c)      SALE OR MERGER. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, the Committee, in the exercise of its sole
discretion, may take such action as it deems desirable, including, but not
limited to: (i) causing an Option to be assumed or an equivalent option to be
substituted by the successor corporation or a parent or subsidiary of such
successor corporation, (ii) providing that an Option holder shall have the right
to exercise his Option as to all of the shares of Common Stock covered by the
Option, including shares as to which the Option would not otherwise be
exercisable, or (iii) declaring that an Option shall terminate at a date fixed
by the Committee provided that the Option holder is given notice and opportunity
to exercise the then exercisable portion of his Option prior to such date.

         17.      AMENDMENT. The Board may terminate or amend this Plan at any
time with respect to shares as to which Options have not been granted, subject
to any required shareholder approval or any shareholder approval that the Board
may deem to be advisable for any reason, such as for the purpose of obtaining or
retaining any statutory or regulatory benefits under tax, securities or other
laws or satisfying any applicable stock exchange listing requirements. The Board
may not, without the consent of the holder of an Option, alter or impair any
Option previously granted under this Plan, except as specifically authorized
herein.

         18.      CONDITIONS UPON ISSUANCE OF SHARES.

         (a)      COMPLIANCE WITH SECURITIES LAWS. Shares of the Company's
Common Stock shall not be issued pursuant to the exercise of an Option unless
the exercise of such Option and the issuance and delivery of such shares
pursuant thereto shall comply with all relevant provisions of law, including,
without limitation, the Securities Act of 1933, as amended, the Exchange Act,
the rules and regulations promulgated thereunder, and the requirements of any
stock exchange upon which the Common Stock of the Company may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

         (b)      INVESTMENT REPRESENTATIONS. As a condition to the exercise of
an Option, the Company may require the person exercising such Option to
represent and warrant at the time of any such exercise that the shares of Common
Stock are being purchased only for investment and without any present intention
to sell or distribute such shares if, in the opinion of counsel for the Company,
such representation is required by any of the aforementioned relevant provisions
of law.

         19.      RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of shares as
shall be sufficient to satisfy the requirements of this Plan. Inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any shares hereunder, shall

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relieve the Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have been obtained.

         20.      EFFECT ON OTHER PLANS. Participation in this Plan shall not
affect an employee's eligibility to participate in any other benefit or
incentive plan of the Company or any subsidiary. Any Options granted pursuant to
this Plan shall not be used in determining the benefits provided under any other
plan of the Company or any subsidiary unless specifically provided.

         21.      DURATION OF THIS PLAN. This Plan shall remain in effect until
all Options granted under this Plan have been satisfied by the issuance of
shares, but no Option shall be granted more than ten years after the earlier of
the date this Plan is adopted by the Company or is approved by the Company's
shareholders.

         22.      FORFEITURE FOR DISHONESTY. Notwithstanding anything to the
contrary in this Plan, if the Committee finds, by a majority vote, after full
consideration of the facts presented on behalf of both the Company and any
optionee, that the optionee has been engaged in fraud, embezzlement, theft,
commission of a felony or dishonest conduct in the course of his employment or
retention by the Company or any subsidiary that damaged the Company or any
subsidiary or that the optionee has disclosed trade secrets of the Company or
any subsidiary, the optionee shall forfeit all unexercised Options and all
exercised Options under which the Company has not yet delivered the
certificates. The decision of the Committee in interpreting and applying the
provisions of this Section 22 shall be final. No decision of the Committee,
however, shall affect the finality of the discharge or termination of such
optionee by the Company or any subsidiary in any manner.

         23.      NO PROHIBITION ON CORPORATE ACTION. No provision of this Plan
shall be construed to prevent the Company or any officer or director thereof
from taking any corporate action deemed by the Company or such officer or
director to be appropriate or in the Company's best interest, whether or not
such action could have an adverse effect on this Plan or any Options granted
hereunder, and no optionee or optionee's estate, personal representative or
beneficiary shall have any claim against the Company or any officer or director
thereof as a result of the taking of such action.

         24.      INDEMNIFICATION. With respect to the administration of this
Plan, the Company shall indemnify each present and future member of the
Committee and the Board against, and each member of the Committee and the Board
shall be entitled without further action on his part to indemnity from the
Company for all expenses (including the amount of judgments and the amount of
approved settlements made with a view to the curtailment of costs of litigation,
other than amounts paid to the Company itself) reasonably incurred by him in
connection with or arising out of, any action, suit or proceeding in which he
may be involved by reason of his being or having been a member of the Committee
and the Board, whether or not he continues to be such member at the time of
incurring such expenses; provided, however, that such indemnity shall not
include any expenses incurred by any such member of the Committee or the Board
(i) in respect

<PAGE>

of matters as to which he shall be finally adjudged in any such action, suit or
proceeding to have been guilty of gross negligence or willful misconduct in the
performance of his duty as such member of the Committee or the Board; or (ii) in
respect of any matter in which any settlement is effected for an amount in
excess of the amount approved by the Company on the advice of its legal counsel;
and provided further that no right of indemnification under the provisions set
forth herein shall be available to or enforceable by any such member of the
Committee and the Board unless, within 60 days after institution of any such
action, suit or proceeding, he shall have offered the Company in writing the
opportunity to handle and defend same at its own expense. The foregoing right of
indemnification shall inure to the benefit of the heirs, executors or
administrators of each such member of the Committee and the Board and shall be
in addition to all other rights to which such member may be entitled as a matter
of law, contract or otherwise.

         25.      MISCELLANEOUS PROVISIONS.

         (a)      COMPLIANCE WITH PLAN PROVISIONS. No optionee or other person
shall have any right with respect to this Plan, the Common Stock reserved for
issuance under this Plan or in any Option until a written option agreement shall
have been executed by the Company and the optionee and all the terms, conditions
and provisions of this Plan and the Option applicable to such optionee (and each
person claiming under or through him) have been met.

         (b)      APPROVAL OF COUNSEL. In the discretion of the Committee, no
shares of Common Stock, other securities or property of the Company, or other
forms of payment shall be issued hereunder with respect to any Option unless
counsel for the Company shall be satisfied that such issuance will be in
compliance with applicable federal, state, local and foreign legal, securities
exchange and other applicable requirements.

         (c)      COMPLIANCE WITH RULE 16b-3. To the extent that Rule 16b-3
under the Exchange Act applies to this Plan or to Options granted under this
Plan, it is the intention of the Company that this Plan comply in all respects
with the requirements of Rule 16b-3, that any ambiguities or inconsistencies in
construction of this Plan be interpreted to give effect to such intention and
that, if this Plan shall not so comply, whether on the date of adoption or by
reason of any later amendment to or interpretation of Rule 16b-3, the provisions
of this Plan shall be deemed to be automatically amended so as to bring them
into full compliance with such rule.

         (d)      UNFUNDED PLAN. This Plan shall be unfunded. The Company shall
not be required to establish any special or separate fund or to make any other
segregation of assets under this Plan.

         (e)      EFFECTS OF ACCEPTANCE OF OPTION. By accepting any Option or
other benefit under this Plan, each optionee and each person claiming under or
through him shall be conclusively deemed to have indicated his acceptance and
ratification of, and consent to, any action taken under this Plan by the
Company, the Board and/or the Committee or its delegates.

<PAGE>

         (f)      CONSTRUCTION. The masculine pronoun shall include the feminine
and neuter, and the singular shall include the plural, where the context so
indicates.

         26.      SHAREHOLDER APPROVAL. The Company shall submit this Plan to
the shareholders entitled to vote hereon for approval within twelve months after
the date of adoption by the Board in order to meet the requirements of Section
422 of the Code and the regulations thereunder, Section 162(m) of the Code and
regulations thereunder, and the National Association of Securities Dealers, Inc.
for the quotation of the Common Stock on the Nasdaq System. The exercise of any
Option granted under this Plan shall be subject to the approval of this Plan by
the shareholders.

                  As Amended by the Board of Directors through August 13, 2003.

                  As Approved by the Shareholders on November 11, 2003.Exhibit 4.1

                                                                EXECUTION COPY

                STRATS(SM) CERTIFICATES SERIES SUPPLEMENT 2004-2

                                    between

                   SYNTHETIC FIXED-INCOME SECURITIES, INC.,
                                  as Trustor

                                      and

                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                    as Trustee and Securities Intermediary

                STRATS(SM) TRUST FOR SPRINT CAPITAL CORPORATION
                           SECURITIES, SERIES 2004-2

<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----

Preliminary Statement........................................................1

Section 1.  Certain Defined Terms............................................1

Section 2.  Creation and Declaration of Trust; Sale of Underlying
            Securities; Acceptance by Trustee................................5

Section 3.  Designation......................................................6

Section 4.  Date of the Certificates.........................................6

Section 5.  Certificate Stated Amount and Denominations; Additional
            Underlying Securities............................................6

Section 6.  Currency of the Certificates.....................................7

Section 7.  Form of Securities...............................................7

Section 8.  Call Warrants....................................................7

Section 9.  Certain Provisions of Base Trust Agreement Not Applicable........8

Section 10. Distributions....................................................8

Section 11. Termination of Trust............................................11

Section 12. Limitation of Powers and Duties.................................11

Section 13. Compensation of Trustee.........................................12

Section 14. Modification or Amendment.......................................13

Section 15. Accounting......................................................13

Section 16. No Investment of Amounts Received on Underlying Securities......13

Section 17. No Event of Default.............................................13

Section 18. Notices.........................................................13

Section 19. Access to Certain Documentation.................................14

Section 20. Advances........................................................14

Section 21. Ratification of Agreement.......................................14

                                       i
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

Section 22. Counterparts....................................................14

Section 23. Governing Law...................................................14

Section 24. Certificate of Compliance.......................................14

Section 25. Certain Filing to be Made by the Trustee........................15

Section 26. Establishment of Certificate Account............................15

Section 27. Statement of Intent.............................................15

Section 28. Filing of Partnership Returns...................................16

Section 29. "Financial Assets" Election.....................................16

Section 30. Trustee's Entitlement Orders....................................16

Section 31. Conflict with Other Agreements..................................16

Section 32. Additional Trustee and Securities Intermediary
            Representations.................................................16

Section 33. Additional Trustor Representations..............................17

Section 34. Certification Requirements......................................17

Section 35. Transfer Restrictions for Class A-2 Certificates................17

Exhibit A -- Identification of the Underlying Securities as of Closing Date
Exhibit B -- Terms of the Certificates as of Closing Date
Exhibit C -- Form of Certificates
Exhibit D -- Form of Call Warrant
Exhibit E -- Form of Class A-2 Transfer Certificate

                                      ii
<PAGE>

       STRATS(SM) SERIES SUPPLEMENT 2004-2, dated as of January 30, 2004
       (this "Series Supplement"), between SYNTHETIC FIXED-INCOME
       SECURITIES, INC., a Delaware corporation, as Trustor (the
       "Trustor"), and U.S. Bank Trust National Association, a national
       banking association, as trustee (the "Trustee") and as securities
       intermediary (the "Securities Intermediary").

                             PRELIMINARY STATEMENT

            Pursuant to the Base Trust Agreement, dated as of September 26,
2003 (the "Base Trust Agreement" and, as supplemented pursuant to the Series
Supplement, the "Agreement"), between the Trustor and the Trustee, such
parties may at any time and from time to time enter into a series supplement
supplemental to the Base Trust Agreement for the purpose of creating a trust.
Section 5.13 of the Base Trust Agreement provides that the Trustor may at any
time and from time to time direct the Trustee to authenticate and deliver, on
behalf of any such trust, a new Series of trust certificates. Each trust
certificate of such new Series of trust certificates will represent a
fractional undivided beneficial interest in such trust. Certain terms and
conditions applicable to each such Series are to be set forth in the related
series supplement to the Base Trust Agreement.

            Pursuant to this Series Supplement, the Trustor and the Trustee
shall create and establish a new trust to be known as STRATS(SM) Trust For
Sprint Capital Corporation Securities, Series 2004-2, and a new Series of
trust certificates to be issued thereby, which certificates shall be known as
the STRATS(SM) Certificates, Series 2004-2, and the Trustor and the Trustee
shall herein specify certain terms and conditions in respect thereof.

            The Certificates shall be Fixed Rate Certificates issued in two
Classes (the "Class A-1 Certificates" and "Class A-2 Certificates,"
respectively, each in the form thereof set forth in Exhibit C, and
collectively, the "Certificates"). The Trust shall hold the Underlying
Securities subject to call options created pursuant to the Warrant Agent
Agreement with respect to the Underlying Securities (the "Call Warrants").

            On behalf of and pursuant to the authorizing resolutions of the
Board of Directors of the Trustor, an authorized officer of the Trustor has
authorized the execution, authentication and delivery of the Certificates, and
has authorized the Base Trust Agreement and this Series Supplement in
accordance with the terms of Section 5.13 of the Base Trust Agreement.

            Section 1. Certain Defined Terms. (a) All terms used in this Series
Supplement that are defined in the Base Trust Agreement, either directly or by
reference therein, have the meanings assigned to such terms therein, except to
the extent such terms are defined or modified in this Series Supplement or the
context requires otherwise. The Base Trust Agreement also contains rules as to
usage which shall be applicable hereto.

            (b) Pursuant to Article I of the Base Trust Agreement, the meaning
of certain defined terms used in the Base Trust Agreement shall, when applied
to the trust certificates of a particular Series, be as defined in Article I
but with such additional provisions and modifications as are specified in the
related series supplement. With respect to the Certificates, the following
definitions shall apply:

<PAGE>

            "761 Election": shall have the meaning set forth in Section 27 of
this Series Supplement.

            "Acceleration": The acceleration of the maturity of the Underlying
Securities after the occurrence of any default on the Underlying Securities
other than a Payment Default.

            "Agreement": Agreement shall have the meaning specified in the
Preliminary Statement to this Series Supplement.

            "Allocation Ratio": A distribution allocated pari passu among the
Class A-1 Certificates and the Class A-2 Certificates in accordance with the
ratio of the Class A-1 Allocation to the Class A-2 Allocation.

            "Base Trust Agreement": Base Trust Agreement shall have the
meaning specified in the Preliminary Statement to this Series Supplement.

            "Business Day": Any day other than a Saturday, Sunday or a day on
which banking institutions in New York, New York are authorized or obligated
by law, executive order or governmental decree to be closed.

            "Call Warrant": Call Warrant shall have the meaning specified in
the Preliminary Statement to this Series Supplement.

            "Certificate Account": With respect to this Series, the Eligible
Account, which shall be a securities account established and maintained by the
Securities Intermediary in the Trustee's name, to which the Underlying
Securities and all payments made on or with respect to the related Underlying
Securities shall be credited.

            "Certificateholder" or "Holder": With respect to any Certificate,
the Holder thereof.

            "Certificateholders" or "Holders": The Holders of the
Certificates.

            "Class A-1 Allocation": On any Scheduled Distribution Date, the
sum of the present values of any unpaid interest and principal due or to
become due on the Class A-1 Certificates, using a discount rate of 6.50% and
assuming that interest and principal payments on the Underlying Securities
were paid when due and that the related Underlying Securities were not
redeemed, prepaid or liquidated prior to the Maturity Date.

            "Class A-2 Allocation": On any Scheduled Distribution Date, the
sum of the present values of any unpaid interest due or to become due on the
Class A-2 Certificates, using a discount rate of 7.61% and assuming that
interest payments on the Underlying Securities were paid when due and that the
related Underlying Securities were not redeemed, prepaid or liquidated prior
to the Maturity Date.

            "Class A-1 Certificates": Class A-1 Certificates shall have the
meaning specified in the Preliminary Statement to this Series Supplement.

                                      2
<PAGE>

            "Class A-2 Certificates": Class A-2 Certificates shall have the
meaning specified in the Preliminary Statement to this Series Supplement.

            "Closing Date": January 30, 2004.

            "Collection Period": The period from (but excluding) the preceding
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date), through and including the current Distribution
Date.

            "Corporate Trust Office": U.S. Bank Trust National Association,
100 Wall Street, Suite 1600, New York, New York 10005 or such other corporate
trust office as the Trustee shall designate in writing to the Trustor and the
Certificateholders.

            "Depositary": The Depositary Trust Company.

            "Depositor": The Trustor acting specifically with respect to the
conveyance of the Underlying Securities under this Series Supplement.

            "Distribution Date": Any Scheduled Distribution Date, the Maturity
Date or any Underlying Securities Default Distribution Date or, if applicable,
any Underlying Securities Redemption Distribution Date.

            "Fixed Payment": Each equal semiannual installment of interest
payable on the Underlying Securities on each May 15 and November 15 or, if any
such day is not a Business Day, then the immediately following Business Day,
commencing on May 17, 2004 through and including November 15, 2028.

            "Interest Collections": With respect to any Distribution Date, all
payments received by the Trustee, during the Collection Period ending on such
Distribution Date, in respect of (i) interest on the Underlying Securities and
(ii) penalties or other amounts required to be paid because of late payments
on the Underlying Securities.

            "Make Whole Amount": For any Distribution Date, the sum of the
present values of any unpaid interest due or to become due on the Class A-2
Certificates (or on the portion thereof represented by any partial reduction
of the Notional Amount), using a discount rate of 7.61% and assuming that
interest payments on the Underlying Securities were paid when due and that the
related Underlying Securities were not redeemed, prepaid or liquidated prior
to the Maturity Date.

            "Maturity Date": November 15, 2028.

            "Moody's": Moody's Investors Service, Inc., or any successor
thereto.

            "Outstanding Amount": With respect to the Class A-1 Certificates
and any date of determination, the Stated Amount of such Class, and with
respect to the Class A-2 Certificates and any date of determination, the
Notional Amount of such Class.

            "Payment Default": A default by the Underlying Securities Issuer
in the payment

                                      3
<PAGE>

of any amount due on the Underlying Securities after the same becomes due and
payable (and the expiration of any applicable grace period on the Underlying
Securities).

            "Place of Distribution": New York, New York.

            "Rating Agency": Each of S&P and Moody's, and any successor to
either of the foregoing. References to "the Rating Agency" in the Agreement
shall be deemed to be each such credit rating agency.

            "Record Date": With respect to any Distribution Date, the day
immediately preceding such Distribution Date.

            "SEC Reporting Failure": Shall have the meaning set forth in
Section 10(g).

            "S&P": Standard & Poor's Ratings Services or any successor
thereto.

            "Scheduled Distribution Date": The 15th day of each May and
November or, if any such day is not a Business Day, then the immediately
following Business Day, commencing May 17, 2004, through and including
November 15, 2028; provided, however, that payment on each Scheduled
Distribution Date shall be subject to prior payment of interest or principal,
as applicable, on the Underlying Securities.

            "Specified Currency": United States Dollars.

            "Trust": STRATS(SM) Trust For Sprint Capital Corporation
Securities, Series 2004-2.

            "Trust Termination Event": (a) the payment in full at maturity or
upon early redemption of the Certificates or (b) the distribution of the
proceeds received upon a recovery on the Underlying Securities (in the case of
Payment Default, after deducting the costs incurred in connection therewith)
after a Payment Default, (c) the distribution (or liquidation and
distribution) of the Underlying Securities in accordance with Section 10(g)
hereof in the event that periodic reports required to be filed by the
Underlying Securities Issuer are no longer being filed, or (d) the sale by the
Trust in accordance with the Call Warrants of all the Underlying Securities
and the distribution in full of all amounts due to Certificateholders.

            "Underlying Securities": As of the Closing Date, $38,000,000
aggregate principal amount of 6.875% Notes due 2028 issued by the Underlying
Securities Issuer, sold to the Trustee by Wachovia Securities and identified
on Exhibit A hereto. Additional Underlying Securities may also be sold to the
Trustee from time to time pursuant to Section 5 of this Series Supplement.

            "Underlying Securities Default Distribution Date": The date on
which the Trustee makes a distribution of the proceeds received in connection
with a recovery on the Underlying Securities (in the case of Payment Default,
after deducting any costs incurred in connection therewith) following a
Payment Default or an Acceleration or other default with respect to the
Underlying Securities.

                                      4
<PAGE>

            "Underlying Securities Issuer": Sprint Capital Corporation.

            "Underlying Securities Payment Date": The 15th day of each May and
November; provided, however, that if any Underlying Securities Payment Date
would otherwise fall on a day that is not a Business Day, such Underlying
Securities Payment Date will be the following Business Day, commencing on May
17, 2004 and ending on November 15, 2028.

            "Underlying Securities Redemption Distribution Date": The date on
which the Trustee receives the proceeds from a redemption of Underlying
Securities in accordance with their terms.

            "Underlying Securities Trustee": The trustee for the Underlying
Securities.

            "Voting Rights": The Class A-1 Certificateholders shall have 100%
of the total Voting Rights with respect to the Certificates, which Voting
Rights shall be allocated among all Holders of Certificates in proportion to
the Stated Amounts held by such Holders on any date of determination.

            "Wachovia Securities": Wachovia Capital Markets, LLC.

            "Warrant Agent Agreement": The Warrant Agent Agreement, dated as
of the date hereof, between the Trustor and U.S. Bank Trust National
Association, as Warrant Agent and as Trustee, as the same may be amended or
modified from time to time.

            "Warrant Exercise Date": Warrant Exercise Date shall have the
meaning given to such term in the Call Warrant.

            "Warrant Exercise Purchase Price": Warrant Exercise Purchase Price
shall have the meaning given to such term in the Call Warrant.

            Section 2. Creation and Declaration of Trust; Sale of Underlying
Securities; Acceptance by Trustee. (a) The Trust, of which the Trustee is the
trustee, is hereby created under the laws of the State of New York for the
benefit of the holders of the Certificates. The Trust shall be irrevocable.

            (b) The Trustor, acting as Depositor, does hereby sell, assign,
convey and set-over to the Trustee, on behalf and for the benefit of the
Trust, the Underlying Securities at a purchase price of $36,803,000 in cash.
The Trustee shall pay the full purchase price for the Underlying Securities by
delivering to Wachovia Securities, for the account of the Depositor, and as
the assignee of the Depositor with respect to such amounts, (i) $36,803,000 on
the Closing Date and (ii) $544,270.83 on May 17, 2004, which represents the
accrued and unpaid interest of the Underlying Securities on the Closing Date.
The amounts to be paid to Wachovia Securities set forth in clause (ii) above,
shall be paid from the Fixed Payment to be received by the Trustee on May 17,
2004. In the event that such Fixed Payment is not received by the Trustee on
such date or is otherwise insufficient to pay such amount of accrued and
unpaid interest to Wachovia Securities, Wachovia Securities, for the account
of the Depositor, and as the assignee of the Depositor with respect to such
amounts, shall have a claim for the unpaid portion of such

                                      5
<PAGE>

amount and shall share pari passu with Certificateholders to the extent of
such claim in the proceeds from the sale or recovery of the Underlying
Securities.

            (c) The Trustee hereby (i) acknowledges such sale, deposit and
delivery, pursuant to subsection (b) above, and receipt by it of the
Underlying Securities, (ii) accepts the trusts created hereunder in accordance
with the provisions hereof and of the Base Trust Agreement but subject to the
Trustee's obligation, as and when the same may arise, to make any payment or
other distribution of the assets of the Trust as may be required pursuant to
this Series Supplement, the Base Trust Agreement and the Certificates, and
(iii) agrees to perform the duties herein or therein required and any failure
to receive reimbursement of expenses and disbursements under Section 13 hereof
shall not release the Trustee from its duties herein or therein.

            Section 3. Designation. There is hereby created a Series of trust
certificates to be issued pursuant to the Base Trust Agreement and this Series
Supplement to be known as the "STRATS(SM) Certificates, Series 2004-2." The
Certificates shall be issued in two Classes, the Class A-1 Certificates and
the Class A-2 Certificates, having the terms provided for in this Series
Supplement. Each Class of Certificates shall be issued in the respective
amounts set forth in Section 5 and with the additional terms set forth in
Exhibit B to this Series Supplement. The Certificates shall be issued in
substantially the form set forth in Exhibit C to this Series Supplement with
such necessary or appropriate changes as shall be approved by the Trustor and
the Trustee, such approval to be manifested by the execution and
authentication thereof by the Trustee. The Certificates shall evidence
undivided ownership interests in the assets of the Trust, subject to the
liabilities of the Trust and shall be payable solely from payments or property
received by the Trustee on or in respect of the Underlying Securities.

            Section 4. Date of the Certificates. The Certificates that are
authenticated and delivered by the Trustee to or upon Trustor Order on the
Closing Date shall be dated the Closing Date. All other Certificates that are
authenticated after the Closing Date for any other purpose under the Agreement
shall be dated the date of their authentication.

            Section 5. Certificate Stated Amount and Denominations; Additional
Underlying Securities. On the Closing Date, up to 1,520,000 Class A-1
Certificates with an aggregate Stated Amount of $38,000,000 and up to 76 Class
A-2 Certificates with an aggregate Notional Amount of $38,000,000 may be
authenticated and delivered under the Base Trust Agreement and this Series
Supplement. Each of the Stated Amount of the Class A-1 Certificates and the
Notional Amount of the Class A-2 Certificates shall equal 100% of the initial
principal amount of Underlying Securities sold to the Trustee and deposited in
the Trust. Such Stated Amount and such Notional Amount shall be calculated
without regard to Certificates authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Certificates pursuant
to Sections 5.3, 5.4 or 5.5 of the Base Trust Agreement. The Depositor may
sell to the Trustee additional Underlying Securities on any date hereafter
upon at least ten (10) Business Days notice to the Trustee and upon (i)
satisfaction of the Rating Agency Condition and (ii) delivery of an Opinion of
Counsel to the effect that the sale of such additional Underlying Securities
will not materially increase the likelihood that the Trust would fail to
qualify as a grantor trust under the Code. Upon such sale to the Trustee, the
Trustee shall deposit such additional Underlying Securities in the Certificate
Account, and shall authenticate and deliver to

                                      6
<PAGE>

the Trustor, or its order, additional Class A-1 Certificates in a Stated
Amount and additional Class A-2 Certificates in a Notional Amount equal to
100% of the principal amount of such additional Underlying Securities. Any
such additional Certificates authenticated and delivered shall have the same
terms and shall rank pari passu with the corresponding Classes of Certificates
previously issued in accordance with this Series Supplement.

            Section 6. Currency of the Certificates. All distributions on the
Certificates will be made in the Specified Currency.

            Section 7. Form of Securities. The Trustee shall execute and
deliver the Certificates in the form of one or more global certificates
registered in the name of the Depositary or its nominee.

            Section 8. Call Warrants. (a) Concurrently with the execution of
this Series Supplement, the Trustee, on behalf of the Trust, shall execute the
Warrant Agent Agreement and a single certificate, dated as of the date hereof
and substantially in the form of Exhibit D hereto, initially evidencing all of
the Call Warrants. The Trustee shall perform the Trust's obligations under the
Warrant Agent Agreement and the Call Warrants in accordance with their
respective terms.

            (b) The Trustee may not enter into any amendment or modification
of the Call Warrant except as provided in Section VI.4 of the Call Warrant.

            (c) The Trustee shall notify the Certificateholders and the Rating
Agencies upon receipt of any notice, pursuant to the provision of the Call
Warrants, of a Warrantholder's intent to exercise its Call Warrants. Such
notice from the Trustee shall state (i) the Warrant Exercise Date, (ii) that
such exercise of the Call Warrant is conditional upon receipt by the Trustee
of the Warrant Exercise Purchase Price with respect to such exercise and (iii)
that the Trustee will select by lot for redemption (or in the event redemption
by lot is not practicable, by pro rata reduction of the aggregate Stated
Amount or Notional Amount, as applicable) a Stated Amount of Class A-1
Certificates and a Notional Amount of Class A-2 Certificates equal to 100% of
the principal amount of Underlying Securities to be purchased and that such
redemption of the Certificates will occur on the Warrant Exercise Date at a
price equal (x) with respect to the Class A-1 Certificates, to 100% of the
Stated Amount of the Class A-1 Certificates to be redeemed ($25 per each Class
A-1 Certificate that is redeemed in full) plus accrued and unpaid interest to
the date of redemption and (y) with respect to the Class A-2 Certificates, to
accrued and unpaid interest on the Notional Amount of the Class A-2
Certificates to be redeemded to the date of redemption, plus (without
duplication as to accrued and unpaid interest) the Make Whole Amount. A holder
of a Call Warrant may rescind its notice given pursuant to the terms of the
Call Warrant and any rescission of such notice or failure to pay the Warrant
Exercise Purchase Price pursuant to a rescinded notice shall not adversely
affect the right of a Warrantholder to deliver a notice thereafter. The
Trustee shall promptly notify Certificateholders of any rescission of such a
notice and that the redemption of Certificates in connection with such
exercise is also rescinded.

            (d) Upon the exercise of any Call Warrant in accordance with the
terms of the Call Warrants, the Trustee, after receipt of the Warrant Exercise
Purchase Price and the Call

                                      7
<PAGE>

Warrants being exercised, shall deliver or cause to be delivered upon the
written direction of the Warrant Agent, by 1:00 p.m. (New York City time) on
the related Warrant Exercise Date, the Underlying Securities as specified in
the exercised Call Warrant by instructing the Depositary to credit such
Underlying Securities to the account of the exercising Warrantholder or its
nominee, provided that the Trustee shall have received notice of the exercise
of such Call Warrant from the Warrant Agent in accordance with the terms of
the Call Warrants and shall have received from the Warrant Agent an amount, in
immediately available funds in a form acceptable to the Trustee, equal to the
Warrant Exercise Purchase Price for such Underlying Securities by 1:00 p.m.
(New York City time) on the related Warrant Exercise Date.

            (e) Upon receipt of the Warrant Exercise Purchase Price pursuant
to this Section 8 and the Call Warrants being exercised, the Trustee shall
deposit the amount of the Warrant Exercise Purchase Price in the Certificate
Account on or before the related Warrant Exercise Date and pay to the
Certificateholders the amount described in Section 8(c)(iii) above. The
Certificates to be redeemed will be selected by the Trustee or DTC by lot (or
in the event redemption by lot is not practicable, by pro rata reduction of
the aggregate Stated Amount or Notional Amount, as applicable) and will be
paid for on the Warrant Exercise Date.

            Section 9. Certain Provisions of Base Trust Agreement Not
Applicable. The provisions of Sections 5.11, 5.16, 6.2, Article VII, 8.1, 8.2
and 8.10 of the Base Trust Agreement and any other provision of the Base Trust
Agreement which imposes obligations on or creates rights in favor of the
Trustee or the Certificateholders as a result of or in connection with an
"Event of Default" or "Administrative Agent Termination Event" shall be
inapplicable with respect to the Certificates. In addition, there is no
"Administrative Agent" specified herein, and all references to "Administrative
Agent" in the Base Trust Agreement, therefore shall be inapplicable with
respect to the Certificates.

            Section 10. Distributions. (a) On each Scheduled Distribution
Date, the Trustee shall distribute to the Certificateholders the Fixed
Payment, to the extent of Interest Collections, and shall allocate such amount
pari passu to the Class A-1 Certificates and the Class A-2 Certificates based
on the respective Interest Rates (as set forth in Exhibit B hereto) of each
such Class. In addition, on any other Distribution Date, the Trustee shall
distribute Interest Collections to the Certificateholders and shall allocate
pari passu to the Class A-1 Certificates and the Class A-2 Certificates based
on the respective Interest Rates of each such Class. On the Maturity Date, and
to the extent received on any other Scheduled Distribution Date or redemption
date, the Trustee shall distribute to the Class A-1 Certificateholders, the
principal amount of the Underlying Securities to the extent the principal of
the Underlying Securities is received by the Trustee on such date or during
the related Collection Period plus any accrued interest thereon. In the event
any redemption or other premium is paid on the Underlying Securities, such
amount shall be distributed to the Class A-2 Certificateholders in an amount
up to the then applicable Make Whole Amount. No distributions of principal
shall be made on the Class A-2 Certificates. Notwithstanding the foregoing, if
any payment with respect to the Underlying Securities is made to the Trustee
after the Underlying Securities Payment Date on which such payment was due,
the Trustee shall distribute such amount received on the Business Day
following such receipt.

            (b) In the event of a Payment Default, the Trustee shall proceed
against the Underlying Securities Issuer on behalf of the Certificateholders
to enforce the Underlying Securities or otherwise to protect the interests of
the Certificateholders, subject to the receipt of indemnity in form and
substance satisfactory to the Trustee; provided that, holders of the

                                      8
<PAGE>

Certificates representing a majority of the Voting Rights on the Certificates
will be entitled to direct the Trustee in any such proceeding or direct the
Trustee to sell the Underlying Securities, subject to the Trustee's receipt of
satisfactory indemnity. If the Trustee is directed to sell the Underlying
Securities, the Trustee shall solicit bids for the sale of the Underlying
Securities with settlement thereof on or before the third (3rd) Business Day
after such sale from three leading dealers in the relevant market, which may
include but not limited but is not limited to any three of the following
dealers: (1) Wachovia Securities (2) Goldman, Sachs & Co., (3) Lehman Brothers
Inc., (4) Merrill Lynch, Pierce, Fenner & Smith Incorporated, (5) Citigroup
Global Markets Inc., (6) J.P. Morgan Securities Inc. and (7) Deutsche Bank
Securities Inc.; provided, however, that no bid from Wachovia Securities or
any affiliate thereof shall be accepted unless such bid equals the then fair
market value of such Underlying Securities. The Trustee shall not be
responsible for the failure to obtain a bid so long as it has made reasonable
efforts to obtain bids. If a bid for the sale of the Underlying Securities has
been accepted by the Trustee but the sale has failed to settle on the proposed
settlement date, the Trustee shall request new bids from such leading dealers.
In the event of an Acceleration and a corresponding payment on the Underlying
Securities, the Trustee shall distribute the proceeds to the
Certificateholders no later than two (2) Business Days after the receipt of
immediately available funds.

            (c) In the event that the Trustee receives money or other property
in respect of the Underlying Securities (other than a scheduled payment on or
with respect to an interest payment date) as a result of a Payment Default on
the Underlying Securities (including from the sale thereof), the Trustee will
promptly give notice as provided in Section 18(c) to the Depositary, or for
any Certificates which are not then held by the Depositary or any other
depository, directly to the registered holders of the Certificates then
outstanding and unpaid. Such notice shall state that, not later than 30 days
after the receipt of such moneys or other property, the Trustee will allocate
and distribute such moneys or other property to the holders of Certificates
then outstanding and unpaid, pro rata between each Class of Certificates by
Allocation Ratio (after deducting the costs incurred in connection therewith
and subject to clause (b)(ii) of Section 2). Property other than cash will be
liquidated by the Trustee, and the proceeds thereof distributed in cash, only
to the extent necessary to avoid distribution of fractional securities to
Certificateholders. In-kind distribution of Underlying Securities to
Certificateholders will be deemed to reduce the Outstanding Amount of
Certificates on a proportionate basis. Following such in kind distribution,
all Certificates will be cancelled. No amounts will be distributed to the
Trustor in respect of the Underlying Securities.

            (d) Distributions to the Certificateholders on each Distribution
Date will be made to the Certificateholders of record on the Record Date.

            (e) All distributions to Certificateholders of a Class shall be
allocated pro rata among the Certificates of such Class based on their
respective Outstanding Amount as of the Record Date.

            (f) Notwithstanding any provision of the Agreement to the
contrary, to the extent funds are available, the Trustee will initiate payment
in immediately available funds by 1:00 P.M. (New York City time) on each
Distribution Date of all amounts payable to each Certificateholder with
respect to any Certificate held by such Certificateholder or its nominee
(without the necessity for any presentation or surrender thereof or any
notation of such payment

                                      9
<PAGE>

thereon) in the manner and at the address as each Certificateholder may from
time to time direct the Trustee in writing 15 days prior to such Distribution
Date requesting that such payment will be so made and designating the bank
account to which such payments shall be so made. The Trustee shall be entitled
to rely on the last instruction delivered by the Certificateholder pursuant to
this Section 10(f) unless a new instruction is delivered 15 days prior to a
Distribution Date.

            (g) (A) If (1) the Underlying Securities Issuer either (x) states
      in writing that it intends permanently to cease filing periodic reports
      required under the Securities Exchange Act of 1934 or (y) fails to file
      all required periodic reports for one full year and (2) the Trustor
      determines after consultation with the Securities and Exchange
      Commission, that under applicable securities laws, rules or regulations
      the Trust must be liquidated or the Underlying Securities distributed
      (an "SEC Reporting Failure"), then the Trustor shall promptly notify the
      Trustee, each Rating Agency and to the extent permitted by applicable
      law, the Warrantholders of such SEC Reporting Failure and the Trustee
      shall liquidate or distribute in kind, as directed by the Trustor, any
      remaining Underlying Securities and the Trustee will allocate and
      distribute such moneys or other property to the holders of Certificates
      then outstanding and unpaid, pro rata between each Class of Certificates
      by Allocation Ratio.

            (B) In addition, the Call Warrants will become immediately
      exercisable upon the occurrence of an SEC Reporting Failure and, if the
      Call Warrants are in the money, as defined below, they will be deemed to
      be exercised without further action by the Warrantholders and will be
      cash settled concurrently with the distribution to Certificateholders.

            (C) If an SEC Reporting Failure occurs, the Trustee shall solicit
      bids for the sale of the Underlying Securities with settlement thereof
      on or before the third (3rd) Business Day after such sale from three
      leading dealers in the relevant market and the Warrantholders, and may
      solicit additional bids from such other parties as the Trustor deems
      appropriate. For purposes of this Section 10(g), the Call Warrants will
      be deemed to be "in the money" if the highest firm bid received with
      respect to all Underlying Securities held by the Trust exceeds the
      Warrant Exercise Purchase Price for such Underlying Securities, and cash
      settlement shall be made in an amount equal to such excess (but only if
      the Underlying Securities are actually sold at a price equal to the
      amount of such bid). Any of the following dealers shall be deemed to
      qualify as leading dealers: (1) Wachovia Securities (2) Goldman, Sachs &
      Co., (3) Lehman Brothers Inc., (4) Merrill Lynch, Pierce, Fenner & Smith
      Incorporated, (5) Citigroup Global Markets Inc., (6) J.P. Morgan
      Securities Inc. and (7) Deutsche Bank Securities Inc.; provided,
      however, that the Trustee may also solicit bids from other leading
      dealers; provided, further, that no bid from Wachovia Securities or any
      affiliate thereof shall be accepted unless such bid equals the then fair
      market value of such Underlying Securities. The Trustee shall not be
      responsible for the failure to obtain a bid so long as it has made
      reasonable efforts to obtain bids. If a bid for the sale of the
      Underlying Securities has been accepted by the Trustee but the sale has
      failed to settle on the proposed settlement date, the Trustee shall
      request new bids from such leading dealers.

                                      10
<PAGE>

            (D) Notwithstanding the foregoing, if at any time an SEC Reporting
      Failure occurs and is continuing, Warrantholders will continue to have
      the right to exercise the Call Warrants in accordance with Section 8 so
      long as the Call Warrants are exercised prior to the liquidation or
      distribution of the Underlying Securities. Any payments to
      Certificateholders in connection with such exercise shall be made as set
      forth in Section 8.

            (h) The rights of the Certificateholders to receive distributions
in respect of the Certificates, and all interests of the Certificateholders in
such distributions, shall be as set forth in this Series Supplement. The
Trustee shall in no way be responsible or liable to the Certificateholders nor
shall any Certificateholder in any way be responsible or liable to any other
Certificateholder in respect of amounts previously distributed on the
Certificates based on their respective Outstanding Amounts.

            Section 11. Termination of Trust. (a) The Trust shall terminate
upon the occurrence of any Trust Termination Event.

            (b) Except for any reports and other information required to be
provided to Certificateholders hereunder and under the Base Trust Agreement
and except as otherwise specified herein and therein, the obligations of the
Trustee will terminate upon the distribution to Certificateholders of all
amounts required to be distributed to them and the disposition of all
Underlying Securities held by the Trustee. The Trust shall thereupon
terminate, except for surviving rights of indemnity.

            Section 12. Limitation of Powers and Duties. (a) The Trustee shall
administer the Trust and the Underlying Securities solely as specified herein
and in the Base Trust Agreement.

            (b) The Trust is constituted solely for the purpose of acquiring
and holding the Underlying Securities. The Trustee is not authorized to
acquire any other investments or engage in any activities not authorized
herein and, in particular, unless expressly provided in the Agreement, the
Trustee is not authorized (i) to sell, assign, transfer, exchange, pledge,
set-off or otherwise dispose of any of the Underlying Securities, once
acquired, or interests therein, including to Certificateholders, (ii) to merge
or consolidate the Trust with any other entity, or (iii) to do anything that
would materially increase the likelihood that the Trust will fail to qualify
as a grantor trust for United States federal income tax purposes. In addition,
the Trustee has no power to create, assume or incur indebtedness or other
liabilities in the name of the Trust other than as contemplated herein and in
the Base Trust Agreement.

            (c) The parties acknowledge that the Trustee, as the holder of the
Underlying Securities, has the right to vote and give consents and waivers in
respect of the Underlying Securities and enforce the other rights, if any, of
a holder of the Underlying Securities, except as otherwise limited by the Base
Trust Agreement or this Series Supplement. In the event that the Trustee
receives a request from the Underlying Securities Trustee, the Underlying
Securities Issuer or, if applicable, the Depositary with respect to the
Underlying Securities, for the Trustee's consent to any amendment,
modification or waiver of the Underlying Securities, or any document relating
thereto, or receives any other solicitation for any action with respect to the

                                      11
<PAGE>

Underlying Securities, the Trustee shall within two (2) Business Days mail a
notice of such proposed amendment, modification, waiver or solicitation to
each Certificateholder of record as of the date of such request. The Trustee
shall request instructions from the Certificateholders as to what action to
take in response to such request and shall be protected in taking no action if
no direction is received. Except as otherwise provided herein, the Trustee
shall consent or vote, or refrain from consenting or voting, in the same
proportion (based on the Stated Amounts of the Class A-1 Certificates) as the
Class A-1 Certificates of the Trust were actually voted or not voted by the
Holders thereof as of the date determined by the Trustee prior to the date
such vote or consent is required; provided, however, that, notwithstanding
anything to the contrary in the Base Trust Agreement or this Series
Supplement, the Trustee shall at no time vote in favor of or consent to any
matter (i) which would alter the timing or amount of any payment on the
Underlying Securities (including, without limitation, any demand to accelerate
the Underlying Securities) or (ii) which would result in the exchange or
substitution of any Underlying Security whether or not pursuant to a plan for
the refunding or refinancing of such Underlying Security, except in each case
with the unanimous consent of the Certificateholders. The Trustee shall have
no liability for any failure to act or to refrain from acting resulting from
the Certificateholders' late return of, or failure to return, directions
requested by the Trustee from the Certificateholders.

            (d) Notwithstanding any provision of the Agreement to the
contrary, the Trustee may require from the Certificateholders prior to taking
any action at the direction of the Certificateholders, an indemnity agreement
of a Certificateholder or any of its Affiliates to provide for security or
indemnity against the costs, expenses and liabilities the Trustee may incur by
reason of any such action. An unsecured indemnity agreement, if acceptable to
the Trustee, shall be deemed to be sufficient to satisfy such security or
indemnity requirement.

            (e) Notwithstanding any provision of the Agreement to the
contrary, the Trustee shall act as the sole Authenticating Agent, Paying Agent
and Registrar.

            Section 13. Compensation of Trustee. The Trustee shall be entitled
to receive from the Trustor as compensation for its services hereunder,
trustee's fees pursuant to a separate agreement between the Trustee and the
Trustor, and shall be reimbursed for all reasonable expenses, disbursements
and advances incurred or made by it (including the reasonable compensation,
disbursements and expenses of its counsel and other persons not regularly in
its employ). The Trustor shall indemnify and hold harmless the Trustee and its
successors, assigns, agents and servants against any and all loss, liability
or reasonable expense (including attorney's fees) incurred by it in connection
with the administration of this trust and the performance of its duties
thereunder. The Trustee shall notify the Trustor promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify the Trustor
shall not relieve the Trustor of its obligations hereunder. The Trustor need
not reimburse any expense or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee's own willful misconduct,
negligence or bad faith. The indemnities contained in this Section 13 shall
survive the resignation or termination of the Trustee or the termination of
this Agreement.

            Failure by the Trustor to pay, reimburse or indemnify the Trustee
shall not entitle the Trustee to any payment, reimbursement or indemnification
from the Trust, nor shall such failure release either the Trustee from the
duties it is required to perform under this Series Supplement. Any unpaid,
unreimbursed or unindemnified amounts shall not be borne by the

                                      12
<PAGE>

Trust and shall not constitute a claim against the Trust, but shall be borne
by the Trustee in its individual capacity, and the Trustee shall have no
recourse against the Trust with respect thereto.

            Section 14. Modification or Amendment. The Trustee shall not enter
into any modification or amendment of the Base Trust Agreement or this Series
Supplement unless such modification or amendment is in accordance with Section
10.1 of the Base Trust Agreement. If the Rating Agency Condition is not
satisfied with respect to any proposed modification or amendment of the Base
Trust Agreement or this Series Supplement, then any such modification or
amendment must be approved by 100% of the Certificateholders. Pursuant to
Section 5 of this Series Supplement, the Trustor may sell to the Trustee
additional Underlying Securities from time to time without violation or
trigger of this Section 14.

            Section 15. Accounting. Notwithstanding Section 3.16 of the Base
Trust Agreement, "Independent Public Accountants' Administration Report," no
such accounting reports shall be required. Pursuant to Section 4.2 of the Base
Trust Agreement, "Reports to Certificateholders," the Trustee shall cause the
statement described in Section 4.2 to be prepared and forwarded as provided
therein.

            Section 16. No Investment of Amounts Received on Underlying
Securities. All amounts received on or with respect to the Underlying
Securities shall be held uninvested by the Trustee.

            Section 17. No Event of Default. There shall be no Events of
Default defined with respect to the Certificates.

            Section 18. Notices. (a) All directions, demands and notices
hereunder and under the Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered or mailed by first
class mail, postage prepaid or by express delivery service or by certified
mail, return receipt requested or delivered in any other manner specified
herein, (i) in the case of the Trustor, to Synthetic Fixed-Income Securities,
Inc., One Wachovia Center 301 South College Street, DC-8 Charlotte, NC 28288,
Attention: Investment Grade Debt Syndicate Desk, or such other address as may
hereafter be furnished to the Trustee in writing by the Trustor, and (ii) in
the case of the Trustee, to U.S. Bank Trust National Association, 100 Wall
Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust,
facsimile number (212) 809-5459, or such other address as may hereafter be
furnished to the Trustor in writing by the Trustee.

            (b) For purposes of delivering notices to the Rating Agency under
Section 10.07 of the Base Trust Agreement, "Notice to Rating Agency," or
otherwise, such notices shall be mailed or delivered as provided in such
Section 10.07, "Notice to Rating Agency," to: Standard & Poor's Ratings
Services, 55 Water Street, New York, New York 10041; and Moody's Investors
Service, Inc., Structured Derivative Products, 99 Church Street, New York, New
York 10007; or such other address as the Rating Agency may designate in
writing to the parties hereto.

            (c) In the event a Payment Default or an Acceleration occurs, the
Trustee shall promptly give notice to the Depositary or, for any Certificates
which are not then held by

                                      13
<PAGE>

the Depositary or any other depository, directly to the registered holders of
the Certificates thereof. Such notice shall set forth (i) the identity of the
issue of Underlying Securities, (ii) the date and nature of such Payment
Default or Acceleration, (iii) the principal amount of the interest or
principal in default, (iv) the Certificates affected by the Payment Default or
Acceleration, and (v) any other information which the Trustee may deem
appropriate.

            (d) Notwithstanding any provisions of the Agreement to the
contrary, the Trustee shall deliver all notices or reports required to be
delivered to or by the Trustee or the Trustor to the Certificateholders
without charge to such Certificateholders.

            Section 19. Access to Certain Documentation. Access to
documentation regarding the Underlying Securities will be afforded without
charge to any Certificateholder so requesting pursuant to Section 3.17 of the
Base Trust Agreement, "Access to Certain Documentation." Additionally, the
Trustee shall provide at the request of any Certificateholder without charge
to such Certificateholder the name and address of each Certificateholder of
Certificates hereunder as recorded in the Certificate Register for purposes of
contacting the other Certificateholders with respect to their rights hereunder
or for the purposes of effecting purchases or sales of the Certificates,
subject to the transfer restrictions set forth herein.

            Section 20. Advances. There is no Administrative Agent specified
herein; hence no person (including the Trustee) shall be permitted or
obligated to make Advances as described in Section 4.3 of the Base Trust
Agreement, "Advances."

            Section 21. Ratification of Agreement. With respect to the Series
issued hereby, the Base Trust Agreement (including the grant of a security
interest in Section 10.8 of the Base Trust Agreement with respect to the
Underlying Securities conveyed hereunder), as supplemented by this Series
Supplement, is in all respects ratified and confirmed, and the Base Trust
Agreement as so supplemented by this Series Supplement shall be read, taken
and construed as one and the same instrument. To the extent there is any
inconsistency between the terms of the Base Trust Agreement and this Series
Supplement, the terms of this Series Supplement shall govern.

            Section 22. Counterparts. This Series Supplement may be executed
in any number of counterparts, each of which so executed shall be deemed to be
an original, but all of such counterparts shall together constitute but one
and the same instrument.

            Section 23. Governing Law. This Series Supplement and each
Certificate issued hereunder shall be governed by and construed in accordance
with the laws of the State of New York applicable to agreements made and to be
performed entirely therein without reference to such State's principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws. The State of New York is the securities intermediary's jurisdiction of
the Securities Intermediary for purposes of the UCC.

            Section 24. Certificate of Compliance. The Trustor shall deliver
to the Trustee on or prior to June 30 of each year prior to a Trust
Termination Event the Officer's Certificate as to compliance as required by
Section 6.1(b) of the Base Trust Agreement.

                                      14
<PAGE>

            Section 25. Certain Filing to be Made by the Trustee. In the event
that a Payment Default or a SEC Reporting Failure occurs and the Underlying
Securities are liquidated at a loss, the Trustee will disclose pursuant to
Treasury Regulation Section 1.6011-4 the loss in accordance with the
procedures of such regulation, unless the Trustees obtain advice from counsel
that such disclosure in not necessary. In general, the Trustee will (x) attach
a completed Form 8886 to its tax return in the year the requisite loss occurs
and (y) file a completed form with the Office of Tax Shelter Analysis (OTSA)
at: Internal Revenue Service LM:PFTG:OTSA, Large and Midsize Business
Division, 1111 Constitution Avenue., NW., Washington DC 20224 (or such other
address subsequently required).

            Section 26. Establishment of Certificate Account. The Securities
Intermediary and the Trustee hereby represent and warrant that:

            (a) The Certificate Account for the Trust is a "securities
account" within the meaning of Section 8-501 of the UCC and is held only in
the name of the Trustee on behalf of the Trust. The Securities Intermediary is
acting in the capacity of a "securities intermediary" within the meaning of
Section 8-102(a)(14) of the UCC;

            (b) All Underlying Securities have been (i) delivered to the
Securities Intermediary pursuant to the Agreement and (ii) credited to the
Certificate Account; and

            (c) The Certificate Account is an account to which financial
assets are or may be credited, and the Securities Intermediary shall treat the
Trustee as entitled to exercise the rights that comprise any financial asset
credited to the Certificate Account.

            Section 27. Statement of Intent. It is the intention of the
parties hereto that, for purposes of federal income taxes, state and local
income and franchise taxes and any other taxes imposed upon, measured by or
based upon gross or net income, the Trust shall be treated as a grantor trust,
but failing that, as a partnership (other than a publicly traded partnership
treated as a corporation) and, in any event, not taxable as a corporation. The
parties hereto agree that, unless otherwise required by appropriate tax
authorities, the Trustee shall file or cause to be filed annual or other
necessary returns, reports and other forms consistent with such intended
characterization. In the event that the Trust is characterized by appropriate
tax authorities as a partnership for federal income tax purposes, each
Certificateholder, by its acceptance of its Certificate, agrees to report its
respective share of the items of income, deductions, and credits of the Trust
on its respective returns (making such elections as to individual items as may
be appropriate) in accordance with Treasury Regulations Section 1.761-2(b)
(the "761 Election") and in a manner consistent with the exclusion of the
Trust from partnership tax accounting. The terms of the Agreement shall be
interpreted to further these intentions of the parties. As further
consideration for each Certificateholder's purchase of a Certificate, each
such Certificateholder is deemed to agree not to irrevocably delegate to any
person (for a period of more than one year) authority to purchase, sell or
exchange its Certificates.

            Each Certificateholder (and each beneficial owner of a
Certificate) by acceptance of its Certificate (or its beneficial interest
therein) agrees, unless otherwise required by appropriate tax authorities, to
file its own tax returns and reports in a manner consistent with the
characterization indicated above.

                                      15
<PAGE>

            Section 28. Filing of Partnership Returns. In the event that the
Trust is characterized (by appropriate tax authorities) as a partnership for
United States federal income tax purposes, and the 761 Election is
ineffective, the Trustor agrees to reimburse the Trust for any expenses
associated with the filing of partnership returns (or returns related
thereto).

            Section 29. "Financial Assets" Election. The Securities
Intermediary hereby agrees that the Underlying Securities credited to the
Certificate Account shall be treated as a "financial asset" within the meaning
of Section 8-102(a)(9) of the UCC.

            Section 30. Trustee's Entitlement Orders. If at any time the
Securities Intermediary shall receive any order from the Trustee directing the
transfer or redemption of any Underlying Securities credited to the
Certificate Account, the Securities Intermediary shall comply with such
entitlement order without further consent by the Trustor or any other Person.
The Securities Intermediary shall take all instructions (including without
limitation all notifications and entitlement orders) with respect to the
Certificate Account solely from the Trustee.

            Section 31. Conflict with Other Agreements. The Securities
Intermediary hereby confirms and agrees that:

            (a) There are no other agreements entered into between the
Securities Intermediary and the Trustor with respect to the Certificate
Account. The Certificate Account and all property credited to the Certificate
Account is not subject to, and the Securities Intermediary hereby waives, any
lien, security interest, right of set off, or encumbrance in favor of the
Securities Intermediary or any Person claiming through the Securities
Intermediary (other than the Trustee);

            (b) It has not entered into, and until the termination of the
Agreement will not enter into, any agreement with any other Person relating to
the Certificate Account and/or any financial assets credited thereto pursuant
to which it has agreed to comply with entitlement orders of any Person other
than the Trustee; and

            (c) It has not entered into, and until the termination of the
Agreement will not enter into, any agreement with any Person purporting to
limit or condition the obligation of the Securities Intermediary to comply
with entitlement orders as set forth in Section 30 hereof.

            Section 32. Additional Trustee and Securities Intermediary
Representations. The Trustee and the Securities Intermediary each hereby
represents and warrants as follows:

            (a) The Trustee and the Securities Intermediary each maintains its
books and records with respect to its securities accounts in the State of New
York;

            (b) The Trustee and the Securities Intermediary each has not
granted any lien on the Underlying Securities nor are the Underlying
Securities subject to any lien on properties of the Trustee or the Securities
Intermediary in its individual capacity; the Trustee and the Securities
Intermediary each has no actual knowledge and has not received actual notice
of any lien on the Underlying Securities (other than any liens of the Trustee
in favor of the beneficiaries of the Trust Agreement); other than the
interests of the Trustee and the Certificateholders and the

                                      16
<PAGE>

potential interests of the Warrantholders, the books and records of the
Trustee and the Securities Intermediary each do not identify any Person as
having an interest in the Underlying Securities; and

            (c) The Trustee and the Securities Intermediary each makes no
representation as to (i) the validity, legality, sufficiency or enforceability
of any of the Underlying Securities or (ii) the collectability, insurability,
effectiveness or suitability of any of the Underlying Securities.

            Section 33. Additional Trustor Representations. The Trustor hereby
represents and warrants to the Trustee as follows:

            (a) Immediately prior to the sale of the Underlying Securities to
the Trustee, the Trustor owned and had good and marketable title to the
Underlying Securities free and clear of any lien, claim or encumbrance of any
Person;

            (b) The Trustor has received all consents and approvals required
by the terms of the Underlying Securities to the sale to the Trustee of its
interest and rights in the Underlying Securities as contemplated by the
Agreement; and

            (c) The Trustor has not assigned, pledged, sold, granted a
security interest in or otherwise conveyed any interest in the Underlying
Securities (or, if any such interest has been assigned, pledged or otherwise
encumbered, it has been released), except such interests sold pursuant to the
Agreement. The Trustor has not authorized the filing of and is not aware of
any financing statements against the Trustor that includes a description of
the Underlying Securities, other than any such filings pursuant to the
Agreement. The Trustor is not aware of any judgment or tax lien filings
against Trustor.

            Section 34. Certification Requirements. The Trustee agrees to
obtain, at the Trustor's direction and expense, a report of an independent
public accountant sufficient for the Trustor on behalf of the Trust to satisfy
its obligations with respect to certification requirements under Rules 13a-14
and 15d-14 of the Exchange Act.

            Section 35. Transfer Restrictions for Class A-2 Certificates. (a)
The Class A-2 Certificates may not be transferred except to a transferee whom
the transferor of the Class A-2 Certificates reasonably believes is (A) a
"Qualified Institutional Buyer" (as defined in Rule 144A under the Securities
Act) and (B) acquiring the Class A-2 Certificates for its own account or for
the account of an investor of the type described in clause (A) above as to
which the transferee exercises sole investment discretion. In addition, each
transferee shall be required to deliver to the Trustee an investment letter in
the form of Exhibit E hereto. The Class A-2 Certificates (or the Class A-2
Certificates issued upon the transfer of the Class A-2 Certificates) shall be
issued with a legend in substantially the following form:

      "These Class A-2 Certificates have not been registered under the
      Securities Act of 1933, as amended and may not be transferred, sold or
      otherwise disposed of except while a registration under such Act is in
      effect or pursuant to the exemption therefrom under such Act provided
      pursuant to Rule 144A thereunder. The Class A-2 Certificates represented
      hereby may be transferred only in compliance with the conditions
      specified in these Class A-2 Certificates including the delivery of an
      Investment Letter in the form attached

                                      17
<PAGE>

      hereto. Each prospective transferee of these Class A-2 Certificates
      shall be required to represent that it is (A) a "Qualified Institutional
      Buyer" (as defined in Rule 144A) and (B) acquiring the Class A-2
      Certificates for its own account or for the account of an investor of
      the type described in clause (A) above as to which the transferee
      exercises sole investment discretion."

            (b) The Class A-2 Certificates may not be acquired by, on behalf
of, or with plan assets of (and each person that acquires an interest in the
Class A-2 Certificates will be required to represent that it is not and is not
investing on behalf of or with plan asset of an employee benefit plan (as
defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA")) or a plan (as defined in Section 4975(e)(1) of the
Internal Revenue Code) that is subject to Title I of ERISA, Section 4975 of
the Code, or any substantially similar federal, state, or local law. The Class
A-2 Certificates shall be issued with a legend in substantially the following
form:

      "These Class A-2 Certificates may not be acquired by or with plan assets
      of an employee benefit plan (as defined in Section 3(3) of ERISA) or a
      plan (as defined in Section 4975(e)(1) of the Internal Revenue Code)
      that is subject to Title I of ERISA, Section 4975 of the Code, or any
      substantially similar federal, state, or local law, and each transferee
      shall be required to deliver to the trustee a representation that its
      acquisition of the Class A-2 Certificate does not violate the foregoing
      restriction."

                                      18
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Series
Trust Agreement to be executed by their respective duly authorized officers as
of the date first above written.

                                    SYNTHETIC FIXED-INCOME SECURITIES, INC.

                                     By:  /s/ Teresa Hee
                                        -------------------------------------
                                        Name:   Teresa Hee
                                        Title:  Vice President

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                    as Trustee

                                     By:  /s/ Janet O'Hara
                                        -------------------------------------
                                        Name:   Janet O'Hara
                                        Title:  Assistant Vice President

<PAGE>

                                                                     EXHIBIT A

        IDENTIFICATION OF THE UNDERLYING SECURITIES AS OF CLOSING DATE

Underlying Issuer:                        Sprint Capital Corporation

Underlying Securities:                    6.875% Notes due 2028

Underlying Securities Guarantor:          Sprint Corporation

Maturity Date/Final Distribution Date:    November 15, 2028

Original Principal Amount Issued:         $2,500,000,000

CUSIP No.:                                852060AD4

Stated Interest Rate:                     6.875% per annum

Interest Payment Dates:                   May 15 and November 15

Optional Redemption:                      The Underlying Securities will be
                                          redeemable, in whole or in part, at
                                          the option of the Underlying
                                          Securities Issuer, at any time or
                                          from time to time, at a redemption
                                          price equal to the greater of (i)
                                          100% of the principal amount of the
                                          Underlying Securities to be
                                          redeemed or (ii) the sum of the
                                          present values of the remaining
                                          scheduled payments of principal and
                                          interest on the related Underlying
                                          Securities discounted, on a
                                          semiannual basis, assuming a
                                          360-day year consisting of twelve
                                          30-day months, at the Treasury Rate
                                          (a yield determined in accordance
                                          with the related Indenture and
                                          based on a United States Treasury
                                          security that would be utilized, at
                                          the time of selection and in
                                          accordance with customary financial
                                          practice, in pricing new issues of
                                          corporate debt securities of
                                          comparable maturity to the
                                          remaining term of the related
                                          Underlying Securities) plus 25
                                          basis points, in each case,
                                          together with accrued interest on
                                          the principal amount of Underlying
                                          Securities being redeemed to the

                                     A-1
<PAGE>

                                          date of redemption.

Principal Amount of Underlying
Securities Deposited
Under Trust Agreement:                    $38,000,000

The Underlying Securities will be held by the Trustee as book-entry credits to
an account of the Trustee or its agent at the Depositary.

                                      A-2
<PAGE>

                                                                     EXHIBIT B

                 TERMS OF THE CERTIFICATES AS OF CLOSING DATE

Maximum Number of STRATS(SM),
   Series 2004-2:                       Class A-1:  Up to 1,520,000
                                        Class A-2:  Up to 76

Aggregate Outstanding Amount of
   STRATS(SM) Certificates,
   Series 2004-2:                       Class A-1:  $38,000,000 (Stated Amount)
                                        Class A-2:  $38,000,000 (Notional
                                                    Amount)

Authorized Denomination:                Class A-1:  $25 and integral multiples
                                                    thereof

                                        Class A-2:  $500,000 and integral
                                                    multiples thereof

Rating Agencies:                        Moody's and S&P

Closing Date:                           January 30, 2004

Distribution Dates:                     May 15 and November 15 or any
                                        Underlying Securities Default
                                        Distribution Date.

Interest Rate:                          Class A-1: 6.500% per annum,
                                        calculated on the outstanding Stated
                                        Amount Class A-2: 0.375% per annum,
                                        calculated on the outstanding Notional
                                        Amount

Notional Amount:                        For the Class A-2 Certificates,
                                        initially $500,000 per Certificate and
                                        $38,000,000 in the aggregate, and at
                                        any time an amount equal to the
                                        outstanding principal balance of the
                                        Underlying Securities, allocated pro
                                        rata among the Class A-2 Certificates.

Maturity Date/
   Final Distribution Date:             November 15, 2028

Record Date:                            With respect to any Distribution
                                        Date, the day immediately preceding
                                        such Distribution Date.

Trustee's Fees:                         The Trustee's fees shall be payable
                                        by the

                                     B-1
<PAGE>

                                        Trustor pursuant to a separate fee
                                        agreement between the Trustee and the
                                        Trustor.

Initial Certificate Registrar:          U.S. Bank Trust National Association

Corporate Trust Office:                 U.S. Bank Trust National Association
                                        100 Wall Street, Suite 1600 New York,
                                        New York 10005 Attention: Corporate
                                        Trust Department, Regarding STRAT(SM)
                                        Trust For Sprint Capital Corporation
                                        Securities, Series 2004-2

                                     B-2
<PAGE>

                                                                     EXHIBIT C

                        FORM OF CLASS A-1 CERTIFICATES

THIS CERTIFICATE REPRESENTS AN UNDIVIDED INTEREST IN THE TRUST AND DOES NOT
EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT GUARANTEED BY THE
TRUSTOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
CERTIFICATE NOR THE DEPOSITED ASSETS ARE INSURED OR GUARANTEED BY ANY
GOVERNMENTAL AGENCY OR ANY OTHER PERSON.

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

CERTIFICATE NUMBER       [____]                         1,520,000 Certificates
CUSIP:   [   ]                           $38,000,000 Certificate Stated Amount
CLASS A-1 INTEREST RATE:  6.50% per annum.

                    STRATS(SM) CERTIFICATES, SERIES 2004-2

evidencing an undivided interest in the Trust, as defined below, the assets of
which include 6.875% Notes due 2028 issued by the Underlying Securities
Issuer.

This Certificate does not represent an interest in or obligation of the
Trustor or any of its affiliates.

      THIS CERTIFIES THAT Cede & Co. is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in STRATS(SM) Trust
For Sprint Capital Corporation Securities, Series 2004-2 (the "Trust") formed
by SYNTHETIC FIXED-INCOME SECURITIES, INC., as Trustor (the "Trustor")
evidenced by Class A-1 Certificates in the number and the Stated Amount set
forth above.

      The Trust was created pursuant to a Base Trust Agreement, dated as of
September 26, 2003 (as amended and supplemented, the "Agreement"), between the
Trustor and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the STRATS(SM) Certificates Series

                                     C-1
<PAGE>

Supplement 2004-2, dated as of January 30, 2004 (the "Series Supplement" and,
together with the Agreement, the "Trust Agreement"), between the Trustor and
the Trustee. This Certificate does not purport to summarize the Trust
Agreement and reference is hereby made to the Trust Agreement for information
with respect to the interests, rights, benefits, obligations, proceeds and
duties evidenced hereby and the rights, duties and obligations of the Trustee
with respect hereto. A copy of the Trust Agreement may be obtained from the
Trustee by written request sent to the Corporate Trust Office. Capitalized
terms used but not defined herein have the meanings assigned to them in the
Trust Agreement.

      This Certificate is one of the duly authorized Certificates designated
as "STRATS(SM) Certificates, Series 2004-2 Class A-1 (herein called the
"Certificate" or "Certificates"). This Certificate is issued under and is
subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound. The assets of the
Trust include the Underlying Securities and all proceeds of the Underlying
Securities. Additional Underlying Securities may be sold to the Trustee and
additional Certificates may be authenticated and delivered from time to time
as provided in the Trust Agreement, which additional Certificates shall rank
pari passu with all other Certificates issued in accordance with the Series
Supplement.

      Under the Trust Agreement, there shall be distributed on the dates
specified in the Trust Agreement (a "Distribution Date"), to the person in
whose name this Certificate is registered at the close of business on the
related Record Date, such Certificateholder's fractional undivided interest in
the amount of distributions of the Underlying Securities to be distributed to
Certificateholders on such Distribution Date. The Underlying Securities will
pay interest on May 15 and November 15 of each year commencing on May 17,
2004. The principal of the Underlying Securities is scheduled to be paid on
November 15, 2028.

      The distributions in respect of this Certificate are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts as set forth in the
Series Trust Agreement.

      It is the intent of the Trustor and the Certificateholders that the
Trust will be classified as a grantor trust under subpart E, Part I of
subchapter J of the Internal Revenue Code of 1986, as amended. Except as
otherwise required by appropriate taxing authorities, the Trustor and the
Trustee, by executing the Trust Agreement, and each Certificateholder, by
acceptance of a Certificate, agrees to treat, and to take no action
inconsistent with the treatment of, the Certificates for such tax purposes as
interests in a grantor trust and the provisions of the Trust Agreement shall
be interpreted to further this intention of the parties.

      Each Certificateholder, by its acceptance of a Certificate, covenants
and agrees that such Certificateholder shall not, prior to the date which is
one year and one day after the termination of the Trust Agreement, acquiesce,
petition or otherwise invoke or cause the Trustor to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a
case against the Trustor under any federal or state bankruptcy, insolvency,
reorganization or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Trustor or
any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Trustor.

                                     C-2
<PAGE>

      The Trust Agreement permits the amendment thereof, in certain
circumstances, without the consent of the Holders of any of the Certificates.

      Unless the certificate of authentication hereon shall have been executed
by an authorized officer of the Trustee by manual signature, this Certificate
shall not entitle the Holder hereof to any benefit under the Trust Agreement
or be valid for any purpose.

      A copy of the Trust Agreement is available upon request and all of its
terms and conditions are hereby incorporated by reference and made a part
hereof.

      THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                        FORM OF CLASS A-2 CERTIFICATES

THIS CERTIFICATE REPRESENTS AN UNDIVIDED INTEREST IN THE TRUST AND DOES NOT
EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT GUARANTEED BY THE
TRUSTOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
CERTIFICATE NOR THE DEPOSITED ASSETS ARE INSURED OR GUARANTEED BY ANY
GOVERNMENTAL AGENCY OR ANY OTHER PERSON.

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

THESE CLASS A-2 CERTIFICATES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF
EXCEPT WHILE A REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO THE
EXEMPTION THEREFROM UNDER SUCH ACT PROVIDED PURSUANT TO RULE 144A THEREUNDER.
THE CLASS A-2 CERTIFICATES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN

                                     C-3
<PAGE>

COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THESE CLASS A-2 CERTIFICATES
INCLUDING THE DELIVERY OF AN INVESTMENT LETTER IN THE FORM ATTACHED HERETO.
EACH PROSPECTIVE TRANSFEREE OF THESE CLASS A-2 CERTIFICATES SHALL BE REQUIRED
TO REPRESENT THAT IT IS (A) A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A) AND (B) ACQUIRING THE CLASS A-2 CERTIFICATES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF AN INVESTOR OF THE TYPE DESCRIBED IN CLAUSE (A) ABOVE AS TO
WHICH THE TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION.

THESE CLASS A-2 CERTIFICATES MAY NOT BE ACQUIRED BY OR WITH PLAN ASSETS OF AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF ERISA) OR A PLAN (AS
DEFINED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE) THAT IS SUBJECT TO
TITLE I OF ERISA, SECTION 4975 OF THE CODE, OR ANY SUBSTANTIALLY SIMILAR
FEDERAL, STATE, OR LOCAL LAW, AND EACH TRANSFEREE SHALL BE REQUIRED TO DELIVER
TO THE TRUSTEE A REPRESENTATION THAT ITS ACQUISITION OF THE CLASS A-2
CERTIFICATE DOES NOT VIOLATE THE FOREGOING RESTRICTION.

CERTIFICATE NUMBER       [____]                                76 Certificates
CUSIP:   [   ]                         $38,000,000 Certificate Notional Amount
CLASS A-2 INTEREST RATE:  0.375% per annum.

                    STRATS(SM) CERTIFICATES, SERIES 2004-2

evidencing an undivided interest in the Trust, as defined below, the assets of
which include 6.875% Notes due 2028 issued by the Underlying Securities
Issuer.

This Certificate does not represent an interest in or obligation of the
Trustor or any of its affiliates.

      THIS CERTIFIES THAT Cede & Co. is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in STRATS(SM) Trust
For Sprint Capital Corporation Securities, Series 2004-2 (the "Trust") formed
by SYNTHETIC FIXED-INCOME SECURITIES, INC., as Trustor (the "Trustor")
evidenced by Class A-2 Certificates in the number and the Notional Amount set
forth above.

      The Trust was created pursuant to a Base Trust Agreement, dated as of
September 26, 2003 (as amended and supplemented, the "Agreement"), between the
Trustor and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the STRATS(SM) Certificates Series Supplement
2004-2, dated as of January 30, 2004 (the "Series Supplement" and, together
with the Agreement, the "Trust Agreement"), between the Trustor and the
Trustee. This Certificate does not purport to summarize the Trust Agreement
and reference is hereby made to the Trust Agreement for information with
respect to the interests, rights, benefits, obligations, proceeds and duties
evidenced hereby and the rights, duties and obligations of the Trustee with
respect hereto. A copy of the Trust Agreement may be obtained from the Trustee
by written request sent to the Corporate Trust Office. Capitalized terms used
but not defined herein have the meanings

                                     C-4
<PAGE>

assigned to them in the Trust Agreement.

      This Certificate is one of the duly authorized Certificates designated
as "STRATS(SM) Certificates, Series 2004-2 Class A-2" (herein called the
"Certificate" or "Certificates"). This Certificate is issued under and is
subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound. The assets of the
Trust include the Underlying Securities and all proceeds of the Underlying
Securities. Additional Underlying Securities may be sold to the Trustee and
additional Certificates may be authenticated and delivered from time to time
as provided in the Trust Agreement, which additional Certificates shall rank
pari passu with all other Certificates issued in accordance with the Series
Supplement.

      Under the Trust Agreement, there shall be distributed on the dates
specified in the Trust Agreement (a "Distribution Date"), to the person in
whose name this Certificate is registered at the close of business on the
related Record Date, such Certificateholder's fractional undivided interest in
the amount of distributions of the Underlying Securities to be distributed to
Certificateholders on such Distribution Date. The Underlying Securities will
pay interest on May 15 and November 15 of each year commencing on May 17,
2004.

      The distributions in respect of this Certificate are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts as set forth in the
Series Trust Agreement.

      It is the intent of the Trustor and the Certificateholders that the
Trust will be classified as a grantor trust under subpart E, Part I of
subchapter J of the Internal Revenue Code of 1986, as amended. Except as
otherwise required by appropriate taxing authorities, the Trustor and the
Trustee, by executing the Trust Agreement, and each Certificateholder, by
acceptance of a Certificate, agrees to treat, and to take no action
inconsistent with the treatment of, the Certificates for such tax purposes as
interests in a grantor trust and the provisions of the Trust Agreement shall
be interpreted to further this intention of the parties.

      Each Certificateholder, by its acceptance of a Certificate, covenants
and agrees that such Certificateholder shall not, prior to the date which is
one year and one day after the termination of the Trust Agreement, acquiesce,
petition or otherwise invoke or cause the Trustor to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a
case against the Trustor under any federal or state bankruptcy, insolvency,
reorganization or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Trustor or
any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Trustor.

      The Trust Agreement permits the amendment thereof, in certain
circumstances, without the consent of the Holders of any of the Certificates.

      Unless the certificate of authentication hereon shall have been executed
by an authorized officer of the Trustee by manual signature, this Certificate
shall not entitle the Holder hereof to any benefit under the Trust Agreement
or be valid for any purpose.

      A copy of the Trust Agreement is available upon request and all of its
terms and

                                     C-5
<PAGE>

conditions are hereby incorporated by reference and made a part hereof.

      THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                     C-6
<PAGE>

                                                                     EXHIBIT D

                                 CALL WARRANT

   STRATS(SM) TRUST FOR SPRINT CAPITAL CORPORATION SECURITIES, SERIES 2004-2

                                 Call Warrant

                         Dated as of January 30, 2004

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

THESE CALL WARRANTS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT
WHILE A REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO THE EXEMPTION
THEREFROM UNDER SUCH ACT PROVIDED PURSUANT TO RULE 144A THEREUNDER. THE CALL
WARRANTS REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH THE
CONDITIONS SPECIFIED IN THESE CALL WARRANTS INCLUDING THE DELIVERY OF AN
INVESTMENT LETTER IN THE FORM ATTACHED HERETO. EACH PROSPECTIVE TRANSFEREE OF
THESE CALL WARRANTS SHALL BE REQUIRED TO REPRESENT THAT IT IS (A) A "QUALIFIED
INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) AND (B) ACQUIRING THE CALL
WARRANTS FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AN INVESTOR OF THE TYPE
DESCRIBED IN CLAUSE (A) ABOVE AS TO WHICH THE TRANSFEREE EXERCISES SOLE
INVESTMENT DISCRETION.

   STRATS(SM) TRUST FOR SPRINT CAPITAL CORPORATION SECURITIES, SERIES 2004-2

                                 Call Warrant

76 Warrants; Each Warrant Relating to $500,000 principal amount of Underlying
                                  Securities

No. W-1                                                        January 30, 2004

      U.S. Bank Trust National Association, as warrant agent (the "Warrant
Agent") under the Warrant Agent Agreement dated as of January 30, 2004 by and
among Synthetic Fixed-Income Securities, Inc. (the "Trustor"), U.S. Bank Trust
National Association, a national banking association, not in its individual
capacity but solely as Trustee (the "Trustee") and the Warrant Agent, in
connection with $38,000,000 principal amount of Sprint Capital Corporation
6.875% Notes due 2028 (the "Underlying Securities") deposited in STRATS(SM)
Trust For Sprint Capital Corporation Securities, Series 2004-2 (the "Trust"),
a trust created under the laws of the State of New York pursuant to a Base
Trust Agreement, dated as of September 26, 2003 (the "Agreement"), between the
Trustor and the Trustee, as supplemented by the STRATS(SM) Series

                                     D-1
<PAGE>

Supplement 2004-2, dated as of January 30, 2004 (the "Series Supplement" and,
together with the Agreement, the "Trust Agreement"), between the Trustor and
the Trustee, for value received, hereby certifies that [ ] or registered
assigns, is entitled to purchase Underlying Securities of $500,000 principal
amount, per each Call Warrant, on any Warrant Exercise Date (as defined below)
designated by the holder of these instruments (the "Call Warrants") at a
purchase price equal to the Warrant Exercise Purchase Price (as defined
below), all subject to the terms and conditions set forth below.

      Certain capitalized terms used in this Call Warrant are defined in
Article IV hereof; capitalized terms used but not defined herein shall have
the respective meanings set forth in the Trust Agreement; references to an
"Exhibit" are, unless otherwise specified, to one of the Exhibits attached to
this Call Warrant and references to a "Section" are, unless otherwise
specified, to one of the sections of this Call Warrant.

                                  Article I

                             Exercise of Warrants
                             --------------------

      Section I.1 Manner of Exercise. (a) Each of these Call Warrants may be
exercised by the holder hereof (each, a "Warrantholder"), on any Warrant
Exercise Date. Each Call Warrant must be exercised in whole and not in part;
however on any Warrant Exercise Date the Warrantholder may exercise any one,
or all, or any intermediate whole number of the unexercised Call Warrants held
by it on such Warrant Exercise Date. The following conditions shall apply to
any exercise of these Call Warrants:

            (i) A written notice in the form of Exhibit I hereto (the "Call
      Notice") specifying the number of Call Warrants being exercised and the
      Warrant Exercise Date shall be delivered to the Warrant Agent and the
      Trustee at least 10 but not greater than 60 days before such Warrant
      Exercise Date.

            (ii) The Warrantholder shall surrender these Call Warrants to the
      Warrant Agent at its office specified in Section VI.3 hereof no later
      than 11:00 a.m. (New York City time) on such Warrant Exercise Date.

            (iii) The Warrantholder shall have made payment to the Warrant
      Agent, by wire transfer or other immediately available funds acceptable
      to the Warrant Agent, in the amount of the Warrant Exercise Purchase
      Price for the exercised Call Warrants, no later than 11:00 a.m. (New
      York City time) on the Warrant Exercise Date and shall have delivered in
      connection with its payment, an executed subscription for the Underlying
      Securities in the form of Exhibit II hereto.

            (iv) The Warrantholder shall have satisfied all conditions to the
      exercise of Call Warrants set forth in Section 8 of the Series
      Supplement.

      Upon exercise of these Call Warrants, the Warrantholder shall be
entitled to delivery of the Called Underlying Securities. The "Called
Underlying Securities" shall be Underlying Securities having a principal
amount equal to $500,000 per exercised Call Warrant.

                                     D-2
<PAGE>

      (b) The Warrant Agent shall notify the Trustee immediately upon receipt
by the Warrant Agent of a notice by the holder of this Call Warrant and upon
receipt of payment of the applicable Warrant Exercise Purchase Price from such
holder pursuant to clause (a) of this Section I.1. The Warrant Agent shall
transfer each payment made by the holder hereof pursuant to clause (a) of this
Section I.1 to the Trustee in immediately available funds, for application
pursuant to the Trust Agreement no later than 1:00 p.m. (New York City time)
on the applicable Warrant Exercise Date (and, pending such transfer, shall
hold each such payment for the benefit of the holder hereof in a segregated
trust account).

      (c) A notice by the holder of a Call Warrant does not impose any
obligations on a holder of a Call Warrant in any way to pay any Warrant
Exercise Purchase Price. If, by 11:00 a.m. (New York City time) on the Warrant
Exercise Date, the holder of the Call Warrant being exercised has not paid the
Warrant Exercise Purchase Price, then such notice shall automatically expire
and none of the holders of such Call Warrant, the Warrant Agent and the
Trustee shall have any obligations with respect to such notice by the holder
of such Call Warrant. The expiration of a notice by the holder of this Call
Warrant shall in no way affect a holder of a Call Warrant's right to
subsequently deliver a notice which satisfies the terms of the Trust
Agreement.

      (d) The Call Warrants will become immediately exercisable upon an SEC
Reporting Failure and, if the Call Warrants are in the money, as defined in
the Trust Agreement, they will be deemed to be exercised without further
action by the Warrantholders and will be cash settled concurrently with the
distribution to Certificateholders, as provided in Section 10(g) of the Trust
Agreement.

      Section I.2 Transfer of Underlying Securities. As soon as practicable
after each surrender of these Call Warrants, and no later than 11:00 a.m. (New
York City time) on the Warrant Exercise Date and upon satisfaction of all
other requirements described in this Call Warrant, the Warrant Agent shall
instruct the Trustee to cause the Called Underlying Securities represented by
the number of Warrants being exercised hereunder to be registered on the
book-entry system of the related depositary in the registered name or names
furnished by the holder, and, in case such exercise is of less than all of
these Call Warrants, new Call Warrants of like tenor, representing the
remaining unexercised and outstanding Call Warrants of the holder, shall be
delivered by the Warrant Agent to the holder hereof. The Trustee shall cause
the delivery of the Called Underlying Securities to the holder or its nominee
no later than 1:00 p.m. (New York City time) on the applicable Warrant
Exercise Date in accordance with Section 8(e) of the Series Supplement.

      Section I.3 Cancellation and Destruction of Call Warrant. All Call
Warrants surrendered to the Warrant Agent for the purpose of exercise pursuant
to Section I.1 and actually exercised, or for the purpose of transfer or
exchange pursuant to Article III, shall be cancelled by the Warrant Agent, and
no Call Warrant (other than that reflecting such transfer or exchange) shall
be issued in lieu thereof. The Warrant Agent shall destroy all cancelled Call
Warrants.

      Section I.4 No Rights as Holder of Underlying Securities Conferred by
Warrants. Prior to the exercise hereof, these Call Warrants shall not entitle
the holder hereof to any of the rights of a holder of the Underlying
Securities, including, without limitation, the right to receive

                                     D-3
<PAGE>

the payment of any amount on or in respect of the Underlying Securities or to
enforce any of the covenants of the Trust Agreement.

      Section I.5 Pro Rata Reduction of Call Warrants if Partial Redemption of
Underlying Securities. If Underlying Securities are redeemed in part by the
Underlying Issuer and the Warrant Holders do not exercise their call rights in
connection with such partial redemption, then the number of Call Warrants held
by each Warrant Holder shall be reduced proportionately so that the aggregate
amount of Underlying Securities callable by Call Warrants shall equal the
amount of Underlying Securities held by the Trust after giving effect to such
partial redemption. The Warrant Agent shall make such adjustments to its
records as shall be necessary to reflect such reductions, shall round the
adjusted number of Warrants as appropriate to ensure (to the extent
practicable) that each Warrant Holder continues to have the right to call
Underlying Securities in increments of $25, and shall notify each Warrant
Holder of such adjustments.

      Section I.6 Selection of Called Underlying Securities in the event of a
Call in Connection with a Partial Redemption. If a Warrant Holder exercises
Call Warrants in connection with a partial redemption of the Underlying
Securities, the Trustee shall, to the extent possible, select Called
Underlying Securities for transfer to the Warrant Holder that have been
selected by the Underlying Issuer for redemption. If more than one Warrant
Holder exercises Call Warrants in such circumstances, such Called Underlying
Securities that have been selected for redemption shall be allocated among
such Warrant Holders in proportion to the number of Call Warrants exercised by
each.

                                  Article II

                           Restrictions on Transfer
                           ------------------------

      Section II.1 Restrictive Legends. These Call Warrants may not be
transferred except to a transferee whom the transferor of these Call Warrants
reasonably believes is (A) a "Qualified Institutional Buyer" (as defined in
Rule 144A under the Securities Act) and (B) acquiring the Call Warrants for
its own account or for the account of an investor of the type described in
clause (A) above as to which the transferee exercises sole investment
discretion. In addition, each transferee shall be required to deliver to the
Warrant Agent an investment letter in the form of Exhibit III hereto.

Except as otherwise permitted by this Article II, the Call Warrants (or the
Call Warrants issued upon the transfer of the Call Warrants) shall be issued
with a legend in substantially the following form:

      "These Call Warrants have not been registered under the Securities Act
of 1933, as amended and may not be transferred, sold or otherwise disposed of
except while a registration under such Act is in effect or pursuant to the
exemption therefrom under such Act provided pursuant to Rule 144A thereunder.
The Call Warrants represented hereby may be transferred only in compliance
with the conditions specified in these Call Warrants including the delivery of
an Investment Letter in the form attached hereto. Each prospective transferee
of these Call Warrants shall be required to represent that it is (A) a
"Qualified Institutional Buyer" (as defined in Rule 144A) and (B) acquiring
the Call Warrants for its own account or for the account of an

                                     D-4
<PAGE>

investor of the type described in clause (A) above as to which the transferee
exercises sole investment discretion."

      Section II.2 Notice of Proposed Transfer; Opinions of Counsel. Prior to
any transfer of any Call Warrant, the holder hereof will give five (5)
Business Days (or such lesser period acceptable to the Warrant Agent) prior
written notice to the Warrant Agent of such holder's intention to effect such
transfer and to comply in all other respects with this Section II.2. Each
transfer of Call Warrants must be for a whole number of Call Warrants.

                                 Article III

               Registration and Transfer of Call Warrants, etc.
               ------------------------------------------------

      Section III.1 Warrant Register; Ownership of Call Warrants. The Warrant
Agent will keep a register in which the Warrant Agent will provide for the
registration of Call Warrants and the registration of transfers of Call
Warrants representing whole numbers of Warrants. The Trustee and the Warrant
Agent may treat the Person in whose name any Call Warrant is registered on
such register as the owner thereof for all purposes, and the Trustee and the
Warrant Agent shall not be affected by any notice to the contrary.

      Section III.2 Transfer and Exchange of Call Warrants. Upon surrender of
any Call Warrant for registration of transfer or for exchange to the Warrant
Agent, the Warrant Agent shall (subject to compliance with Article II) execute
and deliver, and cause the Trustee, on behalf of the Trust, to execute and
deliver, in exchange therefor, a new Call Warrant of like tenor and evidencing
a like whole number of Call Warrants, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes or
government charges) may direct. The Call Warrants may be transferred in
minimum amounts equal to one Call Warrant and in whole multiples in excess
thereof. Fractional transfers of Call Warrants are not permitted.

      Section III.3 Replacement of Call Warrants. Upon receipt of evidence
reasonably satisfactory to the Warrant Agent of the loss, theft, destruction
or mutilation of any Call Warrant and, in the case of any such loss, theft or
destruction of any Call Warrant, upon delivery of an indemnity bond in such
reasonable amount as the Warrant Agent may determine, or, in the case of any
such mutilation, upon the surrender of such Call Warrant for cancellation to
the Warrant Agent, the Warrant Agent shall execute and deliver, and cause the
Trustee, on behalf of the Trust, to execute and deliver, in lieu thereof, a
new Call Warrant of like tenor bearing a number not contemporaneously
outstanding.

      Section III.4 Execution and Delivery of Call Warrants by Trustee. The
Trustee, on behalf of the Trust, hereby agrees (subject to compliance with
Article II) to execute and deliver such new Call Warrants issued in accordance
with Section I.2 or this Article III as the Warrant Agent shall request in
accordance herewith.

                                  Article IV

                                  Definitions
                                  -----------

      As used herein, unless the context otherwise requires, the following
terms have the

                                     D-5
<PAGE>

following respective meanings:

      "Business Day": As defined in the Trust Agreement.

      "Call Warrant": As defined in the introduction to these Call Warrants.

      "Closing Date": January 30, 2004.

      "Called Underlying Securities": As defined in Section I.1(a) hereof.

      "Make Whole Amount": As defined in the Trust Agreement.

      "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.

      "Rating Agencies": Standard & Poor's Ratings Services and Moody's
Investors Service, Inc. and any successor thereto.

      "Responsible Officer": As defined in the Trust Agreement.

      "Securities Act": The Securities Act of 1933, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect at the time.

      "Trust": As defined in the introduction to these Call Warrants.

      "Trust Agreement": The Base Trust Agreement, dated as of September 26,
2003, between the Trustor and the Trustee, as supplemented by the STRATS(SM)
Supplement 2004-2, dated as of January 30, 2004, between the Trustor and the
Trustee, incorporating by reference the definitions and assumptions thereto,
as the same may be amended or modified from time to time.

      "Trustee": As defined in the introduction to these Call Warrants, or any
successor thereto under the Trust Agreement.

      "Trustor": As defined in the introduction to these Call Warrants, or any
successor thereto under the Trust Agreement.

      "Trustor Order":  As defined in the Trust Agreement.

      "Warrant Agent": U.S. Bank Trust National Association, a national
banking association, in its capacity as warrant agent hereunder, or any
successor thereto hereunder.

      "Warrant Exercise Date": Any Business Day on or after January 30, 2009
and any Business Day during any earlier period during which (i) an Event of
Default with respect to the Underlying Securities has occurred and is
continuing, (ii) a tender offer for the Underlying Securities has occurred and
is currently exercisable, (iii) any redemption or other unscheduled payment on
the Underlying Securities has been announced and the record date for the
payment has not yet occurred or (iv) an SEC Reporting Failure has occurred and
is continuing, in each case as set forth in the notice from the Warrantholder
to the Warrant Agent and the Trustee.

                                     D-6
<PAGE>

      "Warrant Exercise Purchase Price": An amount paid by the Warrantholder
on each Warrant Exercise Date equal to 100% of the principal amount of the
Underlying Securities being purchased pursuant to the exercise of the Call
Warrants, in each case, plus accrued and unpaid interest to and including the
Warrant Exercise Date plus the Make Whole Amount.

                                   Article V

                                 Warrant Agent
                                 -------------

      Section V.1 Limitation on Liability. The Warrant Agent shall be
protected against, and shall incur no, liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration
of the Call Warrants in reliance upon any instrument of assignment or
transfer, power of attorney, endorsement, affidavit, letter, notice,
direction, consent, certificate, statement or other paper or document in good
faith believed by it to be genuine and to be signed, executed and, where
necessary, verified and acknowledged, by the proper Person or Persons; unless
a court of competent jurisdiction enter in a non-appealable judgment that such
liability resulted from the gross negligence or willful misconduct of the
Warrant Agent.

      Section V.2 Duties of Warrant Agent. The Warrant Agent undertakes only
the specific duties and obligations imposed hereunder upon the following terms
and conditions, by all of which the Trustor, the Trust, the Trustee and each
Warrantholder shall be bound:

      (a) The Warrant Agent may consult with legal counsel (who may be legal
counsel for the Trustor), and the opinion of such counsel shall be full and
complete authorization and protection to the Warrant Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion,
provided the Warrant Agent shall have exercised reasonable care in the
selection by it of such counsel.

      (b) Whenever in the performance of its duties hereunder, the Warrant
Agent shall deem it necessary or desirable that any fact or matter be proved
or established by the Trustor or the Trustee prior to taking or suffering any
action hereunder, such fact or matter may be deemed to be conclusively proved
and established by a Trustor Order or a certificate signed by a Responsible
Officer of the Trustee and delivered to the Warrant Agent; and such
certificate shall be full authorization to the Warrant Agent for any action
taken or suffered in good faith by it hereunder in reliance upon such
certificate.

      (c) The Warrant Agent shall be liable hereunder only for its own gross
negligence, willful misconduct or bad faith.

      (d) The Warrant Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained herein or be required to verify the
same, but all such statements and recitals are and shall be deemed to have
been made by the Trust and the Trustor only.

      (e) The Warrant Agent shall not have any responsibility in respect of
and makes no representation as to the validity of this Call Warrant or the
execution and delivery hereof (except the due execution hereof by the Warrant
Agent); nor shall it be responsible for any breach by the Trust of any
covenant or condition contained in this Call Warrant; nor shall it by any act

                                     D-7
<PAGE>

hereunder be deemed to make any representation or warranty as to the
Underlying Securities to be purchased hereunder.

      (f) The Warrant Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the Chief Executive Officer, Chief Financial Officer,
Chief Operating Officer, President, a Vice President, its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary of the Trustor,
and any Responsible Officer of the Trustee, and to apply to such officers for
advice or instructions in connection with its duties, and it shall not be
liable for any action taken or suffered to be taken by it in good faith in
accordance with instructions of any such officer.

      (g) The Warrant Agent and any shareholder, director, officer or employee
of the Warrant Agent may buy, sell or deal in any of these Call Warrants or
other securities of the Trust or otherwise act as fully and freely as though
it were not Warrant Agent hereunder, so long as such persons do so in full
compliance with all applicable laws. Nothing herein shall preclude the Warrant
Agent from acting in any other capacity for the Trust, the Trustor or for any
other legal entity.

      (h) The Warrant Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either by itself or
by or through its attorneys or agents.

      (i) The Warrant Agent shall act solely as the agent of the Trust
hereunder. The Warrant Agent shall not be liable except for the failure to
perform such duties as are specifically set forth herein, and no implied
covenants or obligations shall be read into these Call Warrants against the
Warrant Agent, whose duties shall be determined solely by the express
provisions hereof. The Warrant Agent shall not be deemed to be a fiduciary.

      (j) The Warrant Agent shall not have any duty to calculate or determine
any adjustments with respect either to the Warrant Exercise Purchase Price or
to the kind and amount of property receivable by holders of Call Warrants upon
the exercise thereof.

      (k) The Warrant Agent shall not be responsible for any failure on the
part of the Trustee to comply with any of its covenants and obligations
contained herein.

      (l) The Warrant Agent shall not be under any obligation or duty to
institute, appear in or defend any action, suit or legal proceeding in respect
hereof, unless first indemnified to its satisfaction, but this provision shall
not affect the power of the Warrant Agent to take such action as the Warrant
Agent may consider proper, whether with or without such indemnity. The Warrant
Agent shall promptly notify the Trustor and the Trustee in writing of any
claim made or action, suit or proceeding instituted against it arising out of
or in connection with these Call Warrants.

      (m) The Trustee will perform, execute, acknowledge and deliver or cause
to be performed, executed, acknowledged and delivered all such further acts,
instruments and assurances as may be required by the Warrant Agent in order to
enable it to carry out or perform its duties hereunder.

                                     D-8
<PAGE>

      Section V.3 Change of Warrant Agent. The Warrant Agent may resign and be
discharged from its duties hereunder upon thirty (30) days' notice in writing
mailed to the Trustor and the Trustee by registered or certified mail, and to
the holders of the Call Warrants by first-class mail at the expense of the
Trustor; provided that no such resignation or discharge shall become effective
until a successor Warrant Agent shall have been appointed hereunder. The
Trustor may remove the Warrant Agent or any successor Warrant Agent upon
thirty (30) days' notice in writing, mailed to the Warrant Agent or successor
Warrant Agent, as the case may be, and to the holders of the Call Warrants by
first-class mail; provided further that no such removal shall become effective
until a successor Warrant Agent shall have been appointed hereunder. If the
Warrant Agent shall resign or be removed or shall otherwise become incapable
of acting, the Trustor shall promptly appoint a successor to the Warrant
Agent, which may be designated as an interim Warrant Agent. If an interim
Warrant Agent is designated, the Trustor shall then appoint a permanent
successor to the Warrant Agent, which may be the interim Warrant Agent. If the
Trustor shall fail to make such appointment of a permanent successor within a
period of thirty (30) days after such removal or within sixty (60) days after
notification in writing of such resignation or incapacity by the resigning or
incapacitated Warrant Agent or by the holder of a Call Warrant, then the
Warrant Agent or registered holder of any Warrant may apply to any court of
competent jurisdiction for the appointment of such a successor. Any successor
to the Warrant Agent (or any parent of such successor) appointed hereunder
must have long-term unsecured debt obligations that are rated in one of the
four highest rating categories by the Rating Agencies. Any entity which may be
merged or consolidated with or which shall otherwise succeed to substantially
all of the trust or agency business of the Warrant Agent shall be deemed to be
the successor Warrant Agent without any further action.

                                  Article VI

                                 Miscellaneous
                                 -------------

      Section VI.1 Remedies. The remedies at law of the Warrantholder in the
event of any default or threatened default by the Warrant Agent in the
performance of or compliance with any of the terms of these Call Warrants are
not and will not be adequate and, to the fullest extent permitted by law, such
terms may be specifically enforced by a decree for the specific performance of
any agreement contained herein or by an injunction against a violation of any
of the terms hereof or otherwise.

      Section VI.2 Limitation on Liabilities of Holder. Nothing contained in
these Call Warrants shall be construed as imposing any obligation on the
holder hereof to purchase any of the Underlying Securities except in
accordance with the terms hereof.

      Section VI.3 Notices. All notices and other communications under these
Call Warrants shall be in writing and shall be delivered, or mailed by
registered or certified mail, return receipt requested, by a nationally
recognized overnight courier, postage prepaid, addressed (a) if to any holder
of any Call Warrant, at the registered address of such holder as set forth in
the register kept by the Warrant Agent, or (b) if to the Warrant Agent, to 100
Wall Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust
or to such other address notice of which the Warrant Agent shall have given to
the holder hereof and the Trustee or (c) if to the Trust or the

                                     D-9
<PAGE>

Trustee, to the Corporate Trust Office (as set forth in the Trust Agreement);
provided that the exercise of any Call Warrant shall be effective in the
manner provided in Article I.

      Section VI.4 Amendment. (a) These Call Warrants may be amended from time
to time by the Trustor, the Trustee and the Warrant Agent without the consent
of the holder hereof, upon receipt of an opinion of counsel satisfactory to
the Warrant Agent that the provisions hereof have been satisfied and that such
amendment would not alter the status of the Trust to be treated as a
corporation or publicly traded partnership taxable as a corporation under the
Code, for any of the following purposes: (i) to cure any ambiguity or to
correct or supplement any provision herein which may be defective or
inconsistent with any other provision herein or to provide for any other terms
or modify any other provisions with respect to matters or questions arising
under these Call Warrants which shall not adversely affect in any material
respect the interests of the holder hereof or any holder of a Certificate or
(ii) to evidence and provide for the acceptance of appointment hereunder of a
Warrant Agent other than U.S. Bank Trust National Association.

      (b) Without limiting the generality of the foregoing, this Call Warrant
may also be modified or amended from time to time by the Trustor, the Trustee
and the Warrant Agent with the consent of the holders of 66-2/3% of the
outstanding Call Warrants, upon receipt of an opinion of counsel satisfactory
to the Warrant Agent that the provisions hereof (including, without
limitation, the following proviso) have been satisfied, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Call Warrants or of modifying in any manner the rights of
the holders of the Call Warrants; provided, however, that no such amendment
shall (i) adversely affect in any material respect the interests of holders of
Certificates without the consent of the holders of Certificates evidencing not
less than the Required Percentage-Amendment of the aggregate Voting Rights of
such affected Certificates (as such terms are defined in the Trust Agreement)
and without written confirmation from the Rating Agencies that such amendment
will not result in a downgrading or withdrawal of its rating of the
Certificates; (ii) alter the dates on which Call Warrants are exercisable or
the amounts payable upon exercise of a Call Warrant without the consent of the
holders of Certificates evidencing 100% of the aggregate Voting Rights of such
affected Certificates and the holders of 100% of the affected Call Warrants or
(iii) reduce the percentage of aggregate Voting Rights required by (i) or (ii)
without the consent of the holders of all such affected Certificates.
Notwithstanding any other provision of these Call Warrants, this Section
VI.4(b) shall not be amended without the consent of the holders of 100% of the
affected Call Warrants.

      (c) The Warrant Agent shall notify the Rating Agencies of any such
proposed amendment or modification prior to the execution thereof and promptly
after the execution of any such amendment or modification, the Warrant Agent
shall furnish a copy of such amendment or modification to each holder of a
Call Warrant, to each holder of a Certificate and to the Rating Agencies. It
shall not be necessary for the consent of holders of Call Warrants or
Certificates under this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof shall be subject to such reasonable
regulations as the Warrant Agent may prescribe.

      Section VI.5 Expiration. The right to exercise these Call Warrants shall
expire on the earliest to occur of (a) the cancellation hereof, (b) the
termination of the Trust Agreement or (c)

                                     D-10
<PAGE>

the liquidation, disposition or payment in full (whether by maturity,
redemption or otherwise) of all of the Underlying Securities.

      Section VI.6 Descriptive Headings. The headings in these Call Warrants
are for purposes of reference only and shall not limit or otherwise affect the
meaning hereof.

      Section VI.7 GOVERNING LAW. THIS WARRANT INSTRUMENT SHALL BE CONSTRUED
                   -------------- ------------------------------------------
AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE
-----------------------------------------------------------------------
GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
------------------------------------------------------------------------------
CONFLICT OF LAWS.
----------------

      Section VI.8 Judicial Proceedings; Waiver of Jury. Any judicial
proceeding brought against the Trust, the Trustee or the Warrant Agent with
respect to these Call Warrants may be brought in any court of competent
jurisdiction in the County of New York, State of New York or of the United
States of America for the Southern District of New York and, by execution and
delivery of these Call Warrants, the Trustee on behalf of the Trust and the
Warrant Agent (a) accepts, generally and unconditionally, the nonexclusive
jurisdiction of such courts and any related appellate court, and irrevocably
agrees that the Trust, the Trustee and the Warrant Agent shall be bound by any
judgment rendered thereby in connection with these Call Warrants, subject to
any rights of appeal, and (b) irrevocably waives any objection that the Trust,
the Trustee or the Warrant Agent may now or hereafter have as to the venue of
any such suit, action or proceeding brought in such a court or that such court
is an inconvenient forum.

      Section VI.9 Nonpetition Covenant; No Recourse. Each of (i) the
Warrantholder, by its acceptance hereof, and (ii) the Warrant Agent, agrees
that it shall not (and, in the case of the holder, that it shall not direct
the Warrant Agent to), until the date which is one year and one day after the
payment in full of the Certificates and all other securities issued by the
Trust, the Trustor or entities formed, established or settled by the Trustor,
acquiesce, petition or otherwise invoke or cause the Trust, the Trustor or any
such other entity to invoke the process of the United States of America, any
State or other political subdivision thereof or any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government for the purpose of commencing or sustaining a case by
or against the Trust, the Trustor or any such other entity under a federal or
state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar
official of the Trust, the Trustor or any such other entity or all or any part
of the property or assets of Trust, the Trustor or any such other entity or
ordering the winding up or liquidation of the affairs of the Trust, the
Trustor or any such other entity.

      Section VI.10 Amendments to the Trust Agreement. The Trustee hereby
agrees not to consent to any amendments to the Trust Agreement which will
adversely affect the rights of the Warrantholders in a material manner without
the consent of the Warrantholders.

                                     D-11
<PAGE>

      Each of (i) the holder of these Call Warrants, by its acceptance hereof,
and (ii) the Warrant Agent agrees that it shall not have any recourse to the
Underlying Securities.

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      not in its individual capacity but solely
                                      as Trustee and Authenticating Agent

                                    By:_______________________________________
                                       Authorized Signatory

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Warrant Agent

                                    By:_______________________________________
                                       Authorized Signatory

                                     D-12
<PAGE>

                                                                     Exhibit I

                              FORM OF CALL NOTICE

      To:   STRATS(SM) Trust for Sprint Capital Corporation Securities,
            Series 2004-2
            U.S. Bank Trust National Association, as Trustee
            100 Wall Street, Suite 1600
            New York, New York 10005
            Attention:  Corporate Trust

      The undersigned registered holder of [76] [or if different, insert the
number of unexercised warrants held by the undersigned] Call Warrants, hereby
gives notice by registered or certified mail, return receipt requested or by a
nationally recognized overnight courier, postage prepaid, and in accordance
with the terms of the Call Warrants, hereby and irrevocably elects that it
will exercise [76] [or if different, insert the number of unexercised warrants
held by the undersigned to be exercised] Call Warrants on [        ], [20__]
(the "Warrant Exercise Date"), such date being not less than 10 or more than 60
days prior to the date this notice is delivered to the Warrant Agent at the
above address, and agrees that on or prior to the Warrant Exercise Date it
will deliver payment of $[       ] therefor. In connection therewith, the
undersigned hereby certifies that it is solvent as of the date hereof.

Dated:

      (Signature  must  conform in all respects to name of holder as specified
on the face of these Call Warrants)

      (Street Address)
      (City) (State) (Zip Code)

                                 Exhibit I-1
<PAGE>

                                                                    Exhibit II

                             FORM OF SUBSCRIPTION
                             --------------------

             [To be executed only upon exercise of Call Warrants]

To:  STRATS(SM) Trust for Sprint Capital Corporation Securities, Series 2004-2

    U.S. Bank Trust National Association, as Trustee
    100 Wall Street, Suite 1600
    New York, New York 10005
    Attention: Corporate Trust

      The undersigned registered holder of _____ [Insert the number of
unexercised warrants held by the undersigned] Call Warrants, having previously
given notice thereof in accordance with the terms of the Call Warrants, hereby
irrevocably exercises ____ [insert the number of warrants to be exercised]
Call Warrant(s) for, and purchases pursuant thereto, the Called Underlying
Securities receivable upon such exercise, and herewith makes payment of $[   ]
per exercised Call Warrant therefor, and requests that such Called Underlying
Securities be transferred to [insert information required for transfer of
Called Underlying Securities]. In connection therewith, the undersigned hereby
certifies that it is solvent as of the date hereof, as required by Section I.1
of the Call Warrants.

Dated:

      (Signature  must  conform in all respects to name of holder as specified
on the face of Warrant)

      (Street Address)
      (City)(State)(Zip Code)

                                 Exhibit II-1
<PAGE>

                                                                   Exhibit III

                           FORM OF INVESTMENT LETTER

                         QUALIFIED INSTITUTIONAL BUYER

Dated:                                                       [_______________]

U.S. Bank Trust National Association,
100 Wall Street
New York, New York  10005

Synthetic Fixed-Income Securities, Inc.
301 S. Tryon St.
Charlotte, North Carolina  28288-0630

Ladies and Gentlemen:

      In connection with our proposed purchase of [insert number] of the Call
Warrants dated _______________, issued with respect to $_______________
principal amount of _______________ ___% Debentures due _______________, CUSIP
_______________, (the "Call Warrants"), the investor on whose behalf the
undersigned is executing this letter (the "Purchaser") confirms that:

      (1) The Purchaser has received a copy of such information as the
Purchaser deems necessary in order to make its investment decision and the
Purchaser has been provided the opportunity to ask questions of, and receive
answers from, the Trustor, concerning the terms and conditions of the Call
Warrants. The Purchaser has received and understands the above, and
understands that substantial risks are involved in an investment in the Call
Warrants. The Purchaser represents that in making its investment decision to
acquire the Call Warrants, the Purchaser has not relied on representations,
warranties, opinions, projections, financial or other information or analysis,
if any, supplied to it by any person, including you, the Trustor or the
Trustee referred to above or any of their affiliates. The Purchaser has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of an investment in the Call Warrants, and the
Purchaser is able to bear the substantial economic risks of such an
investment. The Purchaser has relied upon its own tax, legal and financial
advisors in connection with its decision to purchase the Call Warrants.

      (2) The Purchaser is (A) a "Qualified Institutional Buyer" (as defined
in Rule 144A under the Securities Act of 1933, as amended (the "1933 Act"))
and (B) acquiring the Call Warrants for its own account or for the account of
an investor of the type described in clause (A) above as to which the
Purchaser exercises sole investment discretion. The Purchaser is purchasing
the Call Warrants for investment purposes and not with a view to, or for, the
offer or sale in connection with, a public distribution or in any other manner
that would violate the 1933 Act or the securities or blue sky laws of any
state.

      (3) The Purchaser understands that the Call Warrants have not been and
will not be registered under the 1933 Act or under the securities or blue sky
laws of any state, and that if it

                                 Exhibit III-1
<PAGE>

decides to resell, pledge or otherwise transfer the Call Warrants, such Call
Warrants may be resold, pledged or transferred without registration only to an
entity that has delivered to the Trustor and the Trustee a certification in
the form of this letter. The Purchaser understands that (i) any transference
of the Call Warrants must be an entity that the Purchaser reasonably believes
to be a Qualified Institutional Buyer that purchases (1) for its own account
or (2) for the account of such a Qualified Institutional Buyer, that is, in
either case, aware that the resale, pledge or transfer is being made in
reliance on said Rule 144A under the 1933 Act and (ii) it will, and each
subsequent holder will be required to, notify any purchaser of the Call
Warrants from it of the resale restrictions referred to herein.

      (4) The Purchaser understands that the Call Warrants will bear a legend
to the following effect, unless otherwise agreed by the Trustor and the
Trustee:

      "THESE CALL WARRANTS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF
EXCEPT WHILE A REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO THE
EXEMPTION THEREFROM UNDER SUCH ACT PROVIDED PURSUANT TO RULE 144A THEREUNDER.
THE CALL WARRANTS REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN COMPLIANCE
WITH THE CONDITIONS SPECIFIED IN THESE CALL WARRANTS INCLUDING THE DELIVERY OF
AN INVESTMENT LETTER IN THE FORM ATTACHED HERETO. EACH PROSPECTIVE TRANSFEREE
OF THESE CALL WARRANTS SHALL BE REQUIRED TO REPRESENT THAT IT IS (A) A
"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) AND (B) ACQUIRING
THE CALL WARRANT FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AN INVESTOR OF THE
TYPE DESCRIBED IN CLAUSE (A) ABOVE AS TO WHICH THE TRANSFEREE EXERCISES SOLE
INVESTMENT DISCRETION."

      (5) The Purchaser agrees that if at some time in the future it wishes to
transfer or exchange the Call Warrants, it will not transfer or exchange the
Call Warrants unless such transfer or exchange is in accordance with Section
3.2 of the Warrant Agent Agreement. The Purchaser understands that any
purported transfer of the Call Warrants in contravention of any of the
restrictions and conditions in the Warrant Agent Agreement, shall be void, and
the purported transferee in such transfer shall not be recognized by the Trust
or any other Person as a Warrant Holder.

      (6) The Purchaser understands that the Call Warrants may be transferred
in minimum amounts equal to one Call Warrant and in whole multiples in excess
thereof and that fractional transfers of Call Warrants are not permitted.

                                 Exhibit III-2
<PAGE>

      You and the Warrant Agent are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                       Very truly yours,

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

                                       Medallion Stamp to be affixed here]

                                       Registration Information:

                                 Exhibit III-3
<PAGE>

                              FORM OF ASSIGNMENT

      [To be executed only upon transfer of these Call Warrants]

      For value received, the undersigned registered holder of these Call
Warrants hereby sells, assigns and transfers unto ______ [insert number] of
the Call Warrants to purchase Underlying Securities to which these Call
Warrants relate, and appoints an Attorney to make such transfer on the books
of the Warrant Agent maintained for such purpose, with full power of
substitution in the premises.

Dated:

      (Signature  must  conform in all respects to name of holder as specified
on the face of these Call Warrants)

      (Street Address)
      (City State) (Zip Code)

Signed in the presence of:

                                 Exhibit III-4
<PAGE>

                                                                     Exhibit E

                           FORM OF INVESTMENT LETTER

                         QUALIFIED INSTITUTIONAL BUYER

                                                      Dated: [_______________]

U.S. Bank Trust National Association,
100 Wall Street
New York, New York  10005

Synthetic Fixed-Income Securities, Inc.
301 S. Tryon St.
Charlotte, North Carolina  28288-0630

Ladies and Gentlemen:

      In connection with our proposed purchase of [insert number] of the ___%
Class A-2 Certificates of STRATS(SM) TRUST FOR [_________________________]
SECURITIES, SERIES 200_-_, CUSIP _______________, (the "Certificates"), issued
pursuant to the STRATS(SM) SERIES SUPPLEMENT 200_-_, dated as of ________-, 200_
to the Base Trust Agreement (the "Series Supplement"), between the above
Trustor and Trustee (capitalized terms used and not defined herein having the
meanings ascribed pursuant to the Series Supplement), the investor on whose
behalf the undersigned is executing this letter (the "Purchaser") confirms
that:

      (1) The Purchaser has received a copy of such information as the
Purchaser deems necessary in order to make its investment decision and the
Purchaser has been provided the opportunity to ask questions of, and receive
answers from, the Trustor, concerning the terms and conditions of the
Certificates. The Purchaser has received and understands the above, and
understands that substantial risks are involved in an investment in the
Certificates. The Purchaser represents that in making its investment decision
to acquire the Certificates, the Purchaser has not relied on representations,
warranties, opinions, projections, financial or other information or analysis,
if any, supplied to it by any person, including you, the Trustor or the
Trustee referred to above or any of their affiliates. The Purchaser has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of an investment in the Certificates, and the
Purchaser is able to bear the substantial economic risks of such an
investment. The Purchaser has relied upon its own tax, legal and financial
advisors in connection with its decision to purchase the Certificates.

      (2) The Purchaser is (A) a "Qualified Institutional Buyer" (as defined
in Rule 144A under the Securities Act of 1933, as amended (the "1933 Act"))
and (B) acquiring the Certificates for its own account or for the account of
an investor of the type described in clause (A) above as to which the
Purchaser exercises sole investment discretion. The Purchaser is purchasing
the Certificates for investment purposes and not with a view to, or for, the
offer or sale in connection with, a public distribution or in any other manner
that would violate the 1933 Act or the securities or blue sky laws of any
state.

                                     E-1
<PAGE>

      (3) The Purchaser understands that the Certificates have not been and
will not be registered under the 1933 Act or under the securities or blue sky
laws of any state, and that if it decides to resell, pledge or otherwise
transfer the Certificates, such Certificates may be resold, pledged or
transferred without registration only to an entity that has delivered to the
Trustor and the Trustee a certification in the form of this letter. The
Purchaser understands that (i) any transference of the Certificates must be an
entity that the Purchaser reasonably believes to be a Qualified Institutional
Buyer that purchases (1) for its own account or (2) for the account of such a
Qualified Institutional Buyer, that is, in either case, aware that the resale,
pledge or transfer is being made in reliance on said Rule 144A under the 1933
Act and (ii) it will, and each subsequent holder will be required to, notify
any purchaser of the Certificates from it of the resale restrictions referred
to herein.

      (4) The Purchaser understands that the Class A-2 Certificates may not be
acquired by, on behalf of, or with plan assets of (and each person that
acquires an interest in the Class A-2 Certificates will be required to
represent that it is not and is not investing on behalf of or with plan asset
of an employee benefit plan (as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA")) or a plan (as
defined in Section 4975(e)(1) of the Internal Revenue Code) that is subject to
Title I of ERISA, Section 4975 of the Code, or any substantially similar
federal, state, or local law.

      (5) The Purchaser understands that the Certificates will bear a legend
to the following effect, unless otherwise agreed by the Trustor and the
Trustee:

"THESE CLASS A-2 CERTIFICATES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
OF EXCEPT WHILE A REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO THE
EXEMPTION THEREFROM UNDER SUCH ACT PROVIDED PURSUANT TO RULE 144A THEREUNDER.
THE CLASS A-2 CERTIFICATES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN
COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THESE CLASS A-2 CERTIFICATES
INCLUDING THE DELIVERY OF AN INVESTMENT LETTER IN THE FORM ATTACHED HERETO.
EACH PROSPECTIVE TRANSFEREE OF THESE CLASS A-2 CERTIFICATES SHALL BE REQUIRED
TO REPRESENT THAT IT IS (A) A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A) AND (B) ACQUIRING THE CLASS A-2 CERTIFICATES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF AN INVESTOR OF THE TYPE DESCRIBED IN CLAUSE (A) ABOVE AS TO
WHICH THE TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION.

"THESE CLASS A-2 CERTIFICATES MAY NOT BE ACQUIRED BY OR WITH PLAN ASSETS OF AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF ERISA) OR A PLAN (AS
DEFINED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE) THAT IS SUBJECT TO
TITLE I OF ERISA, SECTION 4975 OF THE CODE, OR ANY SUBSTANTIALLY SIMILAR
FEDERAL, STATE, OR LOCAL LAW, AND EACH TRANSFEREE SHALL BE REQUIRED TO DELIVER
TO THE TRUSTEE A REPRESENTATION THAT ITS ACQUISITION OF THE CLASS A-2
CERTIFICATE DOES NOT VIOLATE THE FOREGOING RESTRICTION."

                                     E-2
<PAGE>

      (6) The Purchaser agrees that if at some time in the future it wishes to
transfer or exchange the Certificates, it will not transfer or exchange the
Certificates unless such transfer or exchange is in accordance with Section 35
of the Series Supplement. The Purchaser understands that any purported
transfer of the Certificates in contravention of any of the restrictions and
conditions in the Series Supplement, shall be void, and the purported
transferee in such transfer shall not be recognized by the Trust or any other
Person as a Certificateholder.

      (7) The Purchaser understands that the Certificates may be transferred
in minimum amounts equal to $500,000 initial Notional Amount and in whole
multiples in excess thereof and that fractional transfers of Certificates are
not permitted.

                                     E-3
<PAGE>

      You and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                       Very truly yours,

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

                                       Medallion Stamp to be affixed here]

                                       Registration Information:

                                     E-4

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