Document:

Deutsche Bank

To:        All Lenders party to the MBIA Credit Agreements dated August 28, 1998

From:      Deutsche Bank
           MBIA0

Date:      August 29, 2000

Re:        Extension of MBIA's $650 Million Corporate Credit Facilities

We are pleased to report that the Credit Facilities totaling $650 million for
MBIA have been extended successfully. On behalf of MBIA, Deutsche Bank as the
Administrative Agent thanks you for your enthusiastic support for the
transaction.

The following provides a listing of all banks' commitments to the respective
facilities:

Lender                    Multi-year        364-day         Title
                          Commitment        Commitment
                          (US$ millions)    (US$ millions)

Deutsche Bank AG, New     $76.5             $38.5           Administrative Agent
York Branch

Banc One, NA              $56.7             $28.3           Syndication Agent

Fleet National Bank       $56.7             $28.3           Documentation Agent

Banca Monte Dei Paschi D  $50.0             $25.0           Lender
Siena Spa

Bank of Montreal          $33.3             $16.7           Lender

Chase Manhattan Bank      $33.3             $16.7           Lender

Fortis (USA) Finance LLC  $33.0             $17.0           Lender

Bank of America National  $26.7             $13.3           Lender
Trust & Savings Associat

Banco Santander S.A., Ne  $16.7             $8.3            Lender
York Branch

Commerzbank AG, New York  $16.7             $8.3            Lender
Branch

National Australia Bank   $16.7             $8.3            Lender
Limited, New York Branch

Norddeutsche Landesbank   $16.7             $8.3            Lender
Girozentrale, New York
and/or
Cayman Islands Branches

Total                     $433.0            $217.0

<PAGE>   2

The 364-Day Facility will be extended as of August 25, 2000 with a final
maturity of August 24, 2001 and the Four-Year Facility will be extended as of
August 28, 2000 with a final maturity of August 28, 2004. Extension fees will be
paid on August 30, 2000.

Should you have any questions, please don't hesitate to call John McGill,
Deutsche Bank at (212) 469-8666.

<PAGE>   3

Monte Dei Paschi Di Siena

August 11, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10501

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York NY 10019

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Ladies and Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York Branch as
Administrative Agent; The First National Bank of Chicago as Syndication Agent,
and Fleet National Bank as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $50,000,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Banca Monte dei Paschi di Siena S.p.A

By: /s/ Gurilio Nomilcchi
Senior Vice President & General Manager

By: /s/ Brian T. Landy
Vice President

<PAGE>   4

                                                                   Deutsche Bank
                                                       Deutsche Bank AG New York
                                                             31 West 52nd Street
August 29, 2000                                                New York NY 10019

Tel 212-469-8000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Director
Deutsche Bank AG, New York Branch
31 West 52nd Street
New York, NY 10019
(Tel 212-469-8666)
(Fax 212-469-8366)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Ladies and Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York Branch as
Administrative Agent; The First National Bank of Chicago as Syndication Agent,
and Fleet National Bank as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $76,500,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Deutsche Bank AG, New York and/or Cayman Islands Branches

By: /s/ John S. McGill                                   By: /s/ Alan Frouk
Title: Director                                          Title: Vice President

<PAGE>   5

  Timothy J. Stambaugh            Bank One, NA                  tel 212.373.1124
  Senior Vice President           Insurance Division            fax 212.373.1499
                                  153 West 51st Street
                                  New York, NY 10019

Bank One

August 9, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019
(Tel 212-469-8666)
(Fax 212-469-8366)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York Branch, as
Administrative Agent; Bank One, NA (formerly known as The First National Bank of
Chicago), as Syndication Agent, and Fleet National Bank, as Documentation Agent
(the "Credit Agreement"). Terms defined in the Credit Agreement are used herein
with the same meaning. It is also understood that Mr. Sevely is an officer of
both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $56,950,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Bank One, NA (formerly known as The First National Bank of Chicago)

By:/s/ Timothy J. Stambaugh
Title: Senior Vice President

<PAGE>   6

                                           Bank of Montreal
                                           Corporate Banking
                                           15 South LaSalle Street, 12th Floor
                                           Chicago, Illinois 60603
                                           (312) 750-4300

August 9, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 9l4-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019
(Tel 212-469-8666)
(Fax 212-469-9366)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $33,333,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Bank at Montreal

/s/ Karen Modi
Karen Modi
Director

<PAGE>   7

                                                             Jan-Gee W. McCollam
                                                               Managing Director
                                                          Financial Institutions

                                                         Mail Stop: CT EH 40225C
                                                                 777 Main Street
                                                             Hartford, CT  06115
FLEET                                                           860 986-4535 tel
Corporate and                                                   860 986-7264 fax
Investment Banking                                  jan-gee_w_mccollam@fleet.com

August 21, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019
(Tel 212-469-8666)
(Fax 212-469-8377)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $56,700,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Fleet National Bank

By: /s/ Jan-Gee W. McCollam
Jan-Gee W. McCollam
Title: Managing Director

<PAGE>   8

                                        CHASE
The Chase Manhattan Bank
270 Park Avenue, 20th Floor
New York, NY 10017

August 14,2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019
(Tel 212-469-8666)
(Fax 212-469-8366)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28th, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch,
as Administrative Agent; The First National Bank of Chicago, as Syndication
Agent, and Fleet National Bank, as Documentation Agent (the "Credit Agreement").
Terms defined in the Credit Agreement are used herein with the same meaning. It
is also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $33,300,000 such that the extended Final
Maturity Date shall be August 28, 2004.

The Chase Manhattan Bank

By: /s/ MaryBeth Mueller
Vice President

<PAGE>   9

                                              FORTIS
                                              Solid partners. flexible solutions

August 10, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $33,000,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Sincerely,

Fortis (USA) Finance LLC

By: /s/ E. Matthews                           By: /s/ Robert Fakhoury
Title: VP                                     Title: Treasurer

<PAGE>   10

                                Bank of America

August 11, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
Tel: 914-765-3327
Fax: 914-755-3410

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
Now York, NY 10019
Tel: 212-469-9665
Fax: 212-469-8366

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $26,700,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Bank of America, N.A.

/s/ Joan D'Amico
Joan D'Amico
Managing Director

<PAGE>   11

Banco
Santander Central Hispano

August 15, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York NY 10019
(Tel 212-459-0666)
(Fax 212-469-8365)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $16,686,667 such that the extended Final
Maturity Date shall be August 28, 2004.

BANCO SANLANDER CENTRAL HISPANO, S.A., New York Branch.

By: /s/ John Hennessy                      By: /s/ Meeta Anand
Title: Manager Asset Backed Finance        Title: Assistant Vice President

<PAGE>   12

COMMERZBANK                                             2 World Financial Center
AKTIENGESELSCHAFT                                         NEW YORK, NY 10281-050
NEW YORK BRANCH                                         Telephone (212) 266-7200

August 10, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York NY 10019
(Tel 212-459-0666)
(Fax 212-469-8365)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $16,700,000 such that the extended Final
Maturity Date shall be August 28, 2004.

                               Very truly yours,
                                 COMMERZBANK AG
                                New York Branch

         /s/ Thomas Ausfahl                          /s/ James F. Ahern
           Thomas Ausfahl                              James F. Ahern
           Vice President                           Senior Vice President

<PAGE>   13

National Australia Bank

<TABLE>
<CAPTION>
<S>                          <C>                            <C>                                  <C>
National Australia           34th Floor                     Telex 3728852 NATAUS                 Telephone (212) 916-9800
Bank Limited                 200 Park Avenue                SWIM NATAUS33                        Facsimile (212) 983-1969
A.C.N. 004044937             New York, N.Y. 10166                                                (212) 983-1960
</TABLE>
August 11, 2000

Mr. Joseph Sevely
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York, NY 10019
(Tel 212-459-0666)
(Fax 212-469-8365)

RE: NOTICE OF EXTENSION OF FINAL MATURITY DATE

Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for $400,000,000
(subsequently increased to $433,000,000 ) among MBIA Inc., MBIA Insurance
Corporation, Various Lending Institutions, Deutsche Bank AG, New York, Branch as
Administrative Agent; The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent (the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $16,700,000 such that the extended Final
Maturity Date shall be August 28, 2004.

National Australia Bank Limited

By: /s/ Craig Manning
Title: Vice President

<PAGE>   14

                                     NORD/LB
                             NORDDEUTSCHE LANDESBANK
                                  GIROZENTRALE
                             NEW YORK/CAYMAN ISLANDS

Mr. Joseph Sevely                                            August 10, 2000
Treasurer
MBIA Inc.
113 King Street
Armonk, NY 10504
(Tel 914-765-3327)
(Fax 914-765-3410)

Mr. John S. McGill
Vice President
Deutsche Bank AG New York
31 West 52nd Street
New York NY 10019
(Tel 212-459-0666)
(Fax 212-469-8365)

RE: MBIA/Notice of Extension of final maturity date

Ladies and Gentlemen:

Reference is made to the August 28, 1998 Credit Agreement for 200,000,000
(subsequently increased to $433,000,000 ) among MBIA Insurance Corporation,
Various Lending Institutions, Deutsche Bank AG, New York Branch, as
Administrative Agent, The First National Bank of Chicago, as Syndication Agent,
and Fleet National Bank, as Documentation Agent ("Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meaning. It is
also understood that Mr. Sevely is an officer of both Parent and Corp.

Pursuant to Section 1.15 Recommitment: Replacement of Non-Continuing Lender of
the Credit Agreement, the undersigned Lender hereby notifies you that it has
elected to Recommit its commitment of $56,950,000 such that the extended Final
Maturity Date shall be August 28, 2004.

Sincerely,

                      Norddeutsche Landesbank Girozentrale
                     New York and/or Cayman Islands Branch

      /s/ Stephanie Finnen                            /s/ Josef Haas
          Stephanie Finnen                                Josef Haas
          Vice President                                  Vice President<PAGE>   1
                                                                   EXHIBIT 10.19

(Multicurrency-Cross Border)

                                     ISDA(R)

                  International Swap Dealers Association. Inc.

                                MASTER AGREEMENT

                             dated as of May 2, 2000

                         DEUTSCHE BANK AG and MBIA, INC.

have entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:

1.       Interpretation

                  (a) Definitions. The terms defined in Section 14 and in the
         Schedule will have the meanings therein specified for the purpose of
         this Master Agreement.

                  (b) Inconsistency. In the event of any inconsistency between
         the provisions of the Schedule and the other provisions of this Master
         Agreement, the Schedule will prevail. In the event of any inconsistency
         between the provisions of any Confirmation and this Master Agreement
         (including the Schedule), such Confirmation will prevail for the
         purpose of the relevant Transaction.

                  (c) Single Agreement. All Transactions are entered into in
         reliance on the fact that this Master Agreement and all Confirmations
         form a single agreement between the parties (collectively referred to
         as this "Agreement"), and the parties would not otherwise enter into
         any Transactions.

2.       Obligations

                  (a) General Conditions.

                           (i) Each party will make each payment or delivery
                  specified in each Confirmation to be made by it, subject to
                  the other provisions of this Agreement.

                           (ii) Payments under this Agreement will be made on
                  the due date for value on that date in the place of the
                  account specified in the relevant Confirmation or otherwise
                  pursuant to this Agreement, in freely transferable funds and
                  in the manner customary for payments in the required currency.
                  Where settlement is by delivery (that is, other than by
                  payment), such delivery will be made for receipt on the due
                  date in the manner customary for the relevant obligation
                  unless otherwise specified in the relevant Confirmation or
                  elsewhere in this Agreement.

                           (iii) Each obligation of each party under Section
                  2(a)(i) is subject to (1) the condition precedent that no
                  Event of Default or Potential Event of Default with respect to
                  the other party has occurred and is continuing, (2) the
                  condition precedent that no Early Termination Date in respect
                  of the relevant Transaction has occurred or been effectively
                  designated and (3) each other applicable condition precedent
                  specified in this Agreement.

        Copyright(C)1992 by International Swap Dealers Association. Inc.
<PAGE>   2
                  (b) Change of Account. Either party may change its account for
         receiving a payment or delivery by giving notice to the other party at
         least five Local Business Days prior to the scheduled date for the
         payment or delivery to which such change applies unless such other
         party gives timely notice of a reasonable objection to such change.

                  (c) Netting. If on any date amounts would otherwise be
         payable:

                           (i) in the same currency; and

                           (ii) in respect of the same Transaction,

         by each party to the other. then, on such date, each party's obligation
         to make payment of any such amount will be automatically satisfied and
         discharged and, if the aggregate amount that would otherwise have been
         payable by one party exceeds the aggregate amount that would otherwise
         have been payable by the other party, replaced by an obligation upon
         the party by whom the larger aggregate amount would have been payable
         to pay to the other party the excess of the larger aggregate amount
         over the smaller aggregate amount.

         The parties may elect in respect of two or more Transactions that a net
         amount will be determined in respect of all amounts payable out We same
         date in the same currency in respect of such Transactions, regardless
         of whether such amounts are payable in respect of the same Transaction.
         The election may be made in the Schedule or a Confirmation by
         specifying that subparagraph (ii) above will not apply to the
         Transactions identified as being subject to the election, together with
         the starting date (in which case subparagraph (ii) above will not, or
         will cease to, apply to such Transactions from such date). This
         election may be made separately for different groups of Transactions
         and will apply separately to each pairing of Offices through which the
         parties make and receive payments or deliveries.

                  (d) Deduction or Withholding for Tax.

                           (i) Gross-Up. All payments under this Agreement will
                  be made without any deduction or withholding for or on account
                  of any Tax unless such deduction or withholding is required by
                  any applicable law, as modified by the practice of any
                  relevant governmental revenue authority, then in effect. If a
                  party is so required to deduct or withhold, then that party
                  ("X") will:

                                    (1) promptly notify the other party ("Y") of
                           such requirement;

                                    (2) pay to the relevant authorities the full
                           amount required to be deducted or withheld (including
                           the full amount required to be deducted or withheld
                           from any additional amount paid by X to Y under this
                           Section 2(d)) promptly upon the earlier of
                           determining that such deduction or withholding is
                           required or receiving notice that such amount has
                           been assessed against Y;

                                    (3) promptly forward to Y an official
                           receipt (or a certified copy), or other documentation
                           reasonably acceptable to Y, evidencing such payment
                           to such authorities; and

                                    (4) if such Tax is an Indemnifiable Tax, pay
                           to Y, in addition to the payment to which Y is
                           otherwise entitled under this Agreement, such
                           additional amount as is necessary to ensure that the
                           net amount actually received by Y (free and clear of
                           Indemnifiable Taxes, whether assessed against X or Y)
                           will equal the full amount Y would have received had
                           no such deduction or withholding been required.
                           However, X will not be required to pay any additional
                           amount to Y to the extent that it would not be
                           required to be paid but for:

                                             (A) the failure by Y to comply with
                                    or perform any agreement contained in
                                    Section 4(a)(i), 4(a)(iii) or 4(d); or

                                             (B) the failure of a representation
                                    made by Y pursuant to Section 3(f) to be
                                    accurate and true unless such failure would
                                    not have occurred but for (I) any action
                                    taken by a taxing authority, or brought in a
                                    court of competent jurisdiction, on or after
                                    the date on which a Transaction is entered
                                    into (regardless of whether such action is
                                    taken or brought with respect to a party to
                                    this Agreement) or (II) a Change in Tax Law.

                                 2                                  ISDA(R)1992
<PAGE>   3
                           (ii) Liability. If:

                                    (1) X is required by any applicable law, as
                           modified by the practice of any relevant governmental
                           revenue authority, to make any deduction or
                           withholding in respect of which X would not be
                           required to pay an additional amount to Y under
                           Section 2(d)(i)(4);

                                    (2) X does not so deduct or withhold; and

                                    (3) a liability resulting from such Tax is
                           assessed directly against X,

                  then, except to the extent Y has satisfied or then satisfies
                  the liability resulting from such Tax, Y will promptly pay to
                  X the amount of such liability (including any related
                  liability for interest, but including any related liability
                  for penalties only if Y has failed to comply with or perform
                  any agreement contained in Section 4(a)(i), 4(a)(iii) or
                  4(d)).

                  (e) Default Interest; Other Amounts. Prior to the occurrence
         or effective designation of an Early Termination Date in respect of the
         relevant Transaction, a party that defaults in the performance of any
         payment obligation will, to the extent permitted by law and subject to
         Section 6(c), be required to pay interest (before as well as after
         judgment) on the overdue amount to the other party on demand in the
         same currency as such overdue amount, for the period from (and
         including) the original due date for payment to (but excluding) the
         date of actual payment, at the Default Rate. Such interest will be
         calculated on the basis of daily compounding and the actual number of
         days elapsed. If, prior to the occurrence or effective designation of
         an Early Termination Date in respect of the relevant Transaction, a
         party defaults in the performance of any obligation required to be
         settled by delivery, it will compensate the other party on demand if
         and to the extent provided for in the relevant Confirmation or
         elsewhere in this Agreement.

3.       Representations

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:

                  (a) Basic Representations.

                           (i) Status. It is duly organised and validly existing
                  under the laws of the jurisdiction of its organisation or
                  incorporation and, if relevant under such laws, in good
                  standing;

                           (ii) Powers. It has the power to execute this
                  Agreement and any other documentation relating to this
                  Agreement to which it is a party, to deliver this Agreement
                  and any other documentation relating to this Agreement that it
                  is required by this Agreement to deliver and to perform its
                  obligations under this Agreement and any obligations it has
                  under any Credit Support Document to which it is a party and
                  has taken all necessary action to authorise such execution,
                  delivery and performance;

                           (iii) No Violation or Conflict. Such execution,
                  delivery and performance do not violate or conflict with any
                  law applicable to it, any provision of its constitutional
                  documents, any order or judgment of any court or other agency
                  of government applicable to it or any of its assets or any
                  contractual restriction binding on or affecting it or any of
                  its assets;

                           (iv) Consents. All governmental and other consents
                  that are required to have been obtained by it with respect to
                  this Agreement or any Credit Support Document to which it is a
                  party have been obtained and are in full force and effect and
                  all conditions of any such consents have been complied with;
                  and

                           (v) Obligations Binding. Its obligations under this
                  Agreement and any Credit Support Document to which it is a
                  party constitute its legal, valid and binding obligations,
                  enforceable in accordance with their respective terms (subject
                  to applicable bankruptcy, reorganisation, insolvency,
                  moratorium or similar laws affecting creditors' rights
                  generally and subject, as to enforceability, to equitable
                  principles of general application (regardless of whether
                  enforcement is sought in a proceeding in equity or at law)).

                                       3                            ISDA(R)1992
<PAGE>   4
                  (b) Absence of Certain Events. No Event of Default or
         Potential Event of Default or, to its knowledge, Termination Event with
         respect to it has occurred and is continuing and no such event or
         circumstance would occur as a result of its entering into or performing
         its obligations under this Agreement or any Credit Support Document to
         which it is a party.

                  (c) Absence of Litigation. There is not pending or, to its
         knowledge, threatened against it or any of its Affiliates any action.
         suit or proceeding at law or in equity or before any court, tribunal,
         governmental body, agency or official or any arbitrator that is likely
         to affect the legality, validity or enforceability against it of this
         Agreement or any Credit Support Document to which it is a party or its
         ability to perform its obligations under this Agreement or such Credit
         Support Document.

                  (d) Accuracy of Specified Information. All applicable
         information that is furnished in writing by or on behalf of it to the
         other party and is identified for the purpose of this Section 3(d) in
         the Schedule is, as of the date of the information, true, accurate and
         complete in every material respect.

                  (e) Payer Tax Representation. Each representation specified in
         the Schedule as being made by it for the purpose of this Section 3(e)
         is accurate and true.

                  (f) Payee Tax Representations. Each representation specified
         in the Schedule as being made by it for the purpose of this Section
         3(f) is accurate and true.

4.       Agreements

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party:

                  (a) Furnish Specified Information. It will deliver to the
         other party or, in certain cases under subparagraph (iii) below, to
         such government or taxing authority as the other party reasonably
         directs:

                           (i) any forms, documents or certificates relating to
                  taxation specified in the Schedule or any Confirmation;

                           (ii) any other documents specified in the Schedule or
                  any Confirmation; and

                           (iii) upon reasonable demand by such other party, any
                  form or document that may be required or reasonably requested
                  in writing in order to allow such other party or its Credit
                  Support Provider to make a payment under this Agreement or any
                  applicable Credit Support Document without any deduction or
                  withholding for or on account of any Tax or with such
                  deduction or withholding at a reduced rate (so long as the
                  completion, execution or submission of such form or document
                  would not materially prejudice the legal or commercial
                  position of the party in receipt of such demand), with any
                  such form or document to be accurate and completed in a manner
                  reasonably satisfactory to such other party and to be executed
                  and to be delivered with any reasonably required
                  certification,

         in each case by the date specified in the Schedule or such Confirmation
         or, if none is specified, as soon as reasonably practicable.

                  (b) Maintain Authorisations. It will use all reasonable
         efforts to maintain in full force and effect all consents of any
         governmental or other authority that are required to be obtained by it
         with respect to this Agreement or any Credit Support Document to which
         it is a party and will use all reasonable efforts to obtain any that
         may become necessary in the future.

                  (c) Comply with Laws. It will comply in all material respects
         with all applicable laws and orders to which it may be subject if
         failure so to comply would materially impair its ability to perform its
         obligations under this Agreement or any Credit Support Document to
         which it is a party.

                  (d) Tax Agreement. It will give notice of any failure of a
         representation made by it under Section 3(f) to be accurate and true
         promptly upon learning of such failure.

                  (e) Payment of Stamp Tax. Subject to Section 11, it will pay
         any Stamp Tax levied or imposed upon it or in respect of its execution
         or performance of this Agreement by a jurisdiction in which it is
         incorporated,

                                       4                            ISDA(R)1994
<PAGE>   5
         organised, managed and controlled, or considered to have it's seat, or
         in which a branch or office through which it is acting for the purpose
         of this Agreement is located ("Stamp Tax Jurisdiction") and will
         indemnify the other party against any Stamp Tax levied or imposed upon
         the other party or in respect of the other party's execution or
         performance of this Agreement by any such Stamp Tax Jurisdiction which
         is not also a Stamp Tax Jurisdiction with respect to the other party.

5.       Events of Default and Termination Events

                  (a) Events of Default. The occurrence at any time with respect
         to a party or, if applicable, any Credit Support Provider of such party
         or any Specified Entity of such party of any of the following events
         constitutes an event of default (an "Event of Default") with respect to
         such party:

                           (i) Failure to Pay or Deliver. Failure by the party
                  to make, when due, any payment under this Agreement or
                  delivery under Section 2(a)(i) or 2(e) required to be made by
                  it if such failure is not remedied on or before the third
                  Local Business Day after notice of such failure is given to
                  the party:

                           (ii) Breach of Agreement. Failure by the party to
                  comply with or perform any agreement or obligation (other than
                  an obligation to make any payment under this Agreement or
                  delivery under Section 2(a)(i) or 2(e) or to give notice. of a
                  Termination Event or any agreement or obligation under Section
                  4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed
                  by the party in accordance with this Agreement if such failure
                  is not remedied on or before the thirtieth day after notice of
                  such failure is given to the party;

                           (iii) Credit Support Default.

                                    (1) Failure by the party or any Credit
                           Support Provider of such party to comply with or
                           perform any agreement or obligation to be complied
                           with or performed by it in accordance with any Credit
                           Support Document if such failure is continuing after
                           any applicable grace period has elapsed;

                                    (2) the expiration or termination of such
                           Credit Support Document or the failing or ceasing of
                           such Credit Support Document to be in full force and
                           effect for the purpose of this Agreement (in either
                           case other than in accordance with its terms) prior
                           to the satisfaction of all obligations of such party
                           under each Transaction to which such Credit Support
                           Document relates without the written consent of the
                           other party; or

                                    (3) the party or such Credit Support
                           Provider disaffirms, disclaims, repudiates or
                           rejects, in whole or in part, or challenges the
                           validity of, such Credit Support Document;

                           (iv) Misrepresentation. A representation (other than
                  a representation under Section 3(e) or (f)) made or repeated
                  or deemed to have been made or repeated by the party or any
                  Credit Support Provider of such party in this Agreement or any
                  Credit Support Document proves to have been incorrect or
                  misleading in any material respect when made or repeated or
                  deemed to have been made or repeated.

                           (v) Default under Specified Transaction. The party,
                  any Credit Support Provider of such party or any applicable
                  Specified Entity of such party (1) defaults under a Specified
                  Transaction and, after giving effect to any applicable notice
                  requirement or grace period, there occurs a liquidation of an
                  acceleration of obligations under, or an early termination of,
                  the Specified Transaction, (2) defaults, after giving effect
                  to any applicable notice requirement or grace period, in
                  making any payment or delivery due on the last payment,
                  delivery or exchange date of or any payment on early
                  termination of, a Specified Transaction (or such default
                  continues for at least three Local Business Days if there is
                  no applicable notice requirement or grace period) or (3)
                  disaffirms, disclaims, repudiates or rejects in whole or in
                  part, a Specified Transaction (or such action is taken by any
                  person or entity appointed or empowered to operate it or act
                  on its behalf);

                           (vi) Cross Default. If "Cross Default" is specified
                  in the Schedule as applying to the party, the occurrence or
                  existence of (1) a default, event of default or other similar
                  condition or event (however

                                       5                            ISDA(R)1992
<PAGE>   6
                  described) in respect of such party, any Credit Support
                  Provider of such party or any applicable Specified Entity of
                  such party under one or more agreements or instruments
                  relating to Specified Indebtedness of any of them
                  (individually or collectively) in an aggregate amount of not
                  less than the applicable Threshold Amount (as specified in the
                  Schedule) which has resulted in such Specified Indebtedness
                  becoming, or becoming capable at such time of being declared,
                  due and payable under such agreements or instruments, before
                  it would otherwise have been due and payable or (2) a default
                  by such party, such Credit Support Provider or such Specified
                  Entity (individually or collectively) in making one or more
                  payments on the due date thereof in an aggregate amount of not
                  less than the applicable Threshold Amount under such
                  agreements or instruments (after giving effect to any
                  applicable notice requirement or grace period);

                           (vii) Bankruptcy. The party, any Credit Support
                  Provider of such party or any applicable Specified Entity of
                  such party:

                                    (1) is dissolved (other than pursuant to a
                           consolidation, amalgamation or merger); (2) becomes
                           insolvent or is unable to pay its debts or fails or
                           admits in writing its inability generally to pay its
                           debts as they become due; (3) makes a general
                           assignment, arrangement or composition with or for
                           the benefit of its creditors; (4) institutes or has
                           instituted against it a proceeding seeking a judgment
                           of insolvency or bankruptcy or any other relief under
                           any bankruptcy or insolvency law or other similar law
                           affecting creditors' rights, or a petition is
                           presented for its winding-up or liquidation, and, in
                           the case of any such proceeding or petition
                           instituted or presented against it such proceeding or
                           petition (A) results in a judgment of insolvency or
                           bankruptcy or the entry of an order for relief or the
                           making of an order for its winding-up or liquidation
                           or (B) is not dismissed, discharged, stayed or
                           restrained in each case within 30 days of the
                           institution or presentation thereof, (5) has a
                           resolution passed for its winding-up, official
                           management or liquidation (other than pursuant to a
                           consolidation, amalgamation or merger); (6) seeks or
                           becomes subject to the appointment of an
                           administrator, provisional liquidator, conservator,
                           receiver, trustee, custodian or other similar
                           official for it or for all or substantially all its
                           assets; (7) has a secured party take possession of
                           all or substantially all its assets or has a
                           distress, execution, attachment, sequestration or
                           other legal process levied, enforced or sued on or
                           against all or substantially all its assets and such
                           secured party maintains possession, or any such
                           process is not dismissed, discharged, stayed or
                           restrained, in each case within 30 days thereafter;
                           (8) causes or is subject to any event with respect to
                           it which, under the applicable laws of any
                           jurisdiction, has an analogous effect to any of the
                           events specified in clauses (1) to (7) (inclusive);
                           or (9) takes any action in furtherance of, or
                           indicating its consent to, approval of, or
                           acquiescence in, any of the foregoing acts; or

                           (viii) Merger Without Assumption. The party or any
                  Credit Support Provider of such party consolidates or
                  amalgamates with, or merges with or into, or transfers all or
                  substantially all its assets to, another entity and, at the
                  time of such consolidation, amalgamation, merger or transfer,

                                    (1) the resulting, surviving or transferee
                           entity fails to assume all the obligations of such
                           party or such Credit Support Provider under this
                           Agreement or any Credit Support Document to which it
                           or its predecessor was a party by operation of law or
                           pursuant to an agreement reasonably satisfactory to
                           the other party to this Agreement; or

                                    (2) the benefits of any Credit Support
                           Document fail to extend (without the consent of the
                           other party) to the performance by such resulting,
                           surviving or transferee entity of its obligations
                           under this Agreement.

                  (b) Termination Events. The occurrence at any time with
         respect to a party or, if applicable, any Credit Support Provider of
         such party or any Specified Entity of such party of any event specified
         below constitutes an Illegality if the event is specified in (i) below,
         a Tax Event if the event is specified in (ii) below or a Tax Event Upon
         Merger if the event is specified in (iii) below, and, if specified to
         be applicable, a Credit Event

                                       6                             ISDA(R)1992
<PAGE>   7
         Upon Merger if the event is specified pursuant to (iv) below or an
         Additional Termination Event if the event is specified pursuant to (v)
         below:

                           (i) Illegality. Due to the adoption of, or any change
                  in, any applicable law after the date on which a Transaction
                  is entered into, or due to the promulgation of, or any change
                  in, the interpretation by any court, tribunal or regulatory
                  authority with competent jurisdiction of any applicable law
                  after such date, it becomes unlawful (other than as a result
                  of a breach by the party of Section 4(b)) for such party
                  (which will be the Affected Party):

                                    (1) to perform any absolute or contingent
                           obligation to make a payment or delivery or to
                           receive a payment or delivery in respect of such
                           Transaction or to comply with any other material
                           provision of this Agreement relating to such
                           Transaction; or

                                    (2) to perform, or for any Credit Support
                           Provider of such party to perform, any contingent or
                           other obligation which the party (or such Credit
                           Support Provider) has under any Credit Support
                           Document relating to such Transaction;

                           (ii) Tax Event. Due to (x) any action taken by a
                  taxing authority, or brought in a court of competent
                  jurisdiction, on or after the date on which a Transaction is
                  entered into (regardless of whether such action is taken or
                  brought with respect to a party to this Agreement) or (y) a
                  Change in Tax Law, the party (which will be the Affected
                  Party) will, or there is a substantial likelihood that it
                  will, on the next succeeding Scheduled Payment Date (1) be
                  required to pay to the other party an additional amount in
                  respect of an Indemnifiable Tax under Section 2(d)(i)(4)
                  (except in respect of interest under Section 2(e), 6(d)(ii) or
                  6(e)) or (2) receive a payment from which an amount is
                  required to be deducted or withheld for or on account of a Tax
                  (except in respect of interest under Section 2(e), 6(d)(ii) or
                  6(e)) and no additional amount is required to be paid in
                  respect of such Tax under Section 2(d)(i)(4) (other than by
                  reason of Section 2(d)(i)(4)(A) or (B));

                           (iii) Tax Event Upon Merger. The party (the "Burdened
                  Party") on the next succeeding Scheduled Payment Date will
                  either (1) be required to pay an additional amount in respect
                  of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
                  respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or
                  (2) receive a payment from which an amount has been deducted
                  or withheld for or on account of any Indemnifiable Tax in
                  respect of which the other party is not required to pay an
                  additional amount (other than by reason of Section
                  2(d)(i)(4)(A) or (B)), in either case as a result of a party
                  consolidating or amalgamating with, or merging with or into,
                  or transferring all or substantially all its assets to,
                  another entity (which will be the Affected Party) where such
                  action does not constitute an event described in Section
                  5(a)(viii);

                           (iv) Credit Event Upon Merger. If "Credit Event Upon
                  Merger" is specified in the Schedule as applying to the party,
                  such party ("X"), any Credit Support Provider of X or any
                  applicable Specified Entity of X consolidates or amalgamates
                  with, or merges with or into, or transfers all or
                  substantially all its assets to, another entity and such
                  action does not constitute an event described in Section
                  5(a)(viii) but the creditworthiness of the resulting,
                  surviving or transferee entity is materially weaker than that
                  of X, such Credit Support Provider or such Specified Entity,
                  as the case may be, immediately prior to such action (and, in
                  such event, X or its successor or transferee, as appropriate,
                  will be the Affected Party); or

                           (v) Additional Termination Event. If "Additional
                  Termination Event" is specified in the Schedule or any
                  Confirmation as applying, the occurrence of such event (and,
                  in such event, the Affected Party or Affected Parties shall be
                  as specified for such Additional Termination Event in the
                  Schedule or such Confirmation).

                  (c) Event of Default and Illegality. If an event or
         circumstance which would otherwise constitute or give rise to an Event
         of Default also constitutes an Illegality, it will be treated as an
         Illegality and will not constitute an Event of Default.

                                       7                             ISDA(R)1992
<PAGE>   8
6.       Early Termination

                  (a) Right to Terminate Following Event of Default. If at any
         time an Event of Default with respect to a party (the "Defaulting
         Party") has occurred and is then continuing, the other party (the
         "Non-defaulting Party") may, by not more than 20 days notice to the
         Defaulting Party specifying the relevant Event of Default, designate a
         day not earlier than the day such notice is effective as an Early
         Termination Date in respect of all outstanding Transactions. If,
         however, "Automatic Early Termination" is specified in the Schedule as
         applying to a party, then an Early Termination Date in respect of all
         outstanding Transactions will occur immediately upon the occurrence
         with respect to such party of an Event of Default specified in Section
         5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8),
         and as of the time immediately preceding the institution of the
         relevant proceeding or the presentation of the relevant petition upon
         the occurrence with respect to such party of an Event of Default
         specified in Section 5(a)(vii)(4) or, to the extent analogous thereto,
         (8).

                  (b) Right to Terminate Following Termination Event.

                           (i) Notice. If a Termination Event occurs, an
                  Affected Party will, promptly upon becoming aware of it,
                  notify the other party, specifying the nature of that
                  Termination Event and each Affected Transaction and will also
                  give such other information about that Termination Event as
                  the other party may reasonably require.

                           (ii) Transfer to Avoid Termination Event. If either
                  an, Illegality under Section 5(b)(i)(1) or a Tax Event occurs
                  and there is only one Affected Party, or if a Tax Event Upon
                  Merger occurs and the Burdened Party is the Affected Party,
                  the Affected Party will, as a condition to its right to
                  designate an Early Termination Date under Section 6(b)(iv),
                  use all reasonable efforts (which will not require such party
                  to incur a loss, excluding immaterial, incidental expenses) to
                  transfer within 20 days after it gives notice under Section
                  6(b)(i) all its rights and obligations under this Agreement in
                  respect of the Affected Transactions to another of its Offices
                  or Affiliates so that such Termination Event ceases to exist.

         If the Affected Party is not able to make such a transfer it will give
         notice to the other party to that effect within such 20 day period,
         whereupon the other party may effect such a transfer within 30 days
         after the notice is given under Section 6(b)(i).

         Any such transfer by a party under this Section 6(b)(ii) will be
         subject to and conditional upon the prior written consent of the other
         party, which consent will not be withheld if such other party's
         policies in effect at such time would permit it to enter into
         transactions with the transferee on the terms proposed.

                           (iii) Two Affected Parties. If an Illegality under
                  Section 5(b)(i)(l) or a Tax Event occurs and there are two
                  Affected Parties, each party will use all reasonable efforts
                  to reach agreement within 30 days after notice thereof is
                  given under Section 6(b)(i) on action to avoid that
                  Termination Event.

                           (iv) Right to Terminate. If:

                                    (1) a transfer under Section 6(b)(ii) or an
                           agreement under Section 6(b)(iii), as the case may
                           be, has not been effected with respect to all
                           Affected Transactions within 30 days after an
                           Affected Party gives notice under Section 6(b)(i); or

                                    (2) an Illegality under Section 5(b)(i)(2),
                           a Credit Event Upon Merger or an Additional
                           Termination Event occurs, or a Tax Event Upon Merger
                           occurs and the Burdened Party is not the Affected
                           Party,

         either party in the case of an Illegality, the Burdened Party in the
         case of a Tax Event Upon Merger, any Affected Party in the case of a
         Tax Event or an Additional Termination Event if there is more than one
         Affected Party, or the party which is not the Affected Party in the
         case of a Credit Event Upon Merger or an Additional Termination Event
         if there is only one Affected Party may, by not more than 20 days
         notice to the other party and provided that the relevant Termination
         Event is then

                                       8                             ISDA(R)1992
<PAGE>   9
         continuing, designate a day not earlier than the day such notice is
         effective as an Early Termination Date in respect of all Affected
         Transactions.

                  (c) Effect of Designation.

                           (i) If notice designating an Early Termination Date
                  is given under Section 6(a) or (b), the Early Termination Date
                  will occur on the date so designated, whether or not the
                  relevant Event of Default or Termination Event is then
                  continuing.

                           (ii) Upon the occurrence or effective designation of
                  an Early Termination Date, no further payments or deliveries
                  under Section 2(a)(i) or 2(e) in respect of the Terminated
                  Transactions will be required to be made, but without
                  prejudice to the other provisions of this Agreement. The
                  amount, if any payable in respect of an Early Termination Date
                  shall be determined pursuant to Section 6(e).

                  (d) Calculations.

                           (i) Statement. On or as soon as reasonably
                  practicable following the occurrence of an Early Termination
                  Date, each party will make the calculations on its part, if
                  any, contemplated by Section 6(e) and will provide to the
                  other party a statement (1) showing, in reasonable detail,
                  such calculations (including all relevant quotations and
                  specifying any amount payable under Section 6(e)) and (2)
                  giving details of the relevant account to which any amount
                  payable to it is to be paid. In the absence of written
                  confirmation from the source of a quotation obtained in
                  determining a Market Quotation, the records of the party
                  obtaining such quotation will be conclusive evidence of the
                  existence and accuracy of such quotation.

                           (ii) Payment Date. An amount calculated as being due
                  in respect of any Early Termination Date under Section 6(e)
                  will be payable on the day that notice of the amount payable
                  is effective (in the case of an Early Termination Date which
                  is designated or occurs as a result of an Event of Default)
                  and on the day which is two Local Business Days after the day
                  on which notice of the amount payable is effective (in the
                  case of an Early Termination Date which is designated as a
                  result of a Termination Event). Such amount will be paid
                  together with (to the extent permitted under applicable law)
                  interest thereon (before as well as after judgment) in the
                  Termination Currency, from (and including) the relevant Early
                  Termination Date to (but excluding) the date such amount is
                  paid, at the Applicable Rate. Such interest will be calculated
                  on the basis of daily compounding and the actual number of
                  days elapsed.

                  (e) Payments on Early Termination. If an Early Termination
         Date occurs, the following provisions shall apply based on the parties'
         election in the Schedule of a payment measure, either "Market
         Quotation" or "Loss", and a payment method, either the "First Method"
         or the "Second Method". If the parties fail to designate a payment
         measure or payment method in the Schedule, it will be deemed that
         "Market Quotation" or the "Second Method", as the case may be, shall
         apply. The amount, if any, payable in respect of an Early Termination
         Date and determined pursuant to this Section will be subject to any
         Set-off.

                           (i) Events of Default. If the Early Termination Date
                  results from an Event of Default:

                                    (1) First Method and Market Quotation. If
                           the First Method and Market Quotation apply, the
                           Defaulting Party will pay to the Non-defaulting Party
                           the excess, if a positive number, of (A) the sum of
                           the Settlement Amount (determined by the
                           Non-defaulting Party) in respect of the Terminated
                           Transactions and the Termination Currency Equivalent
                           of the Unpaid Amounts owing to the Non-defaulting
                           Party over (B) the Termination Currency Equivalent of
                           the Unpaid Amounts owing to the Defaulting Party.

                                    (2) First Method and Loss. If the First
                           Method and Loss apply, the Defaulting Party will pay
                           to the Non-defaulting Party, if a positive number,
                           the Non-defaulting Party's Loss in respect of this
                           Agreement.

                                    (3) Second Method and Marker Quotation. If
                           the Second Method and Market Quotation apply, an
                           amount will be payable equal to (A) the sum of the
                           Settlement Amount (determined by the

                                       9                             ISDA(R)1992
<PAGE>   10
                           Non-defaulting Party) in respect of the Terminated
                           Transactions and the Termination Currency Equivalent
                           of the Unpaid Amounts owing to the Non-defaulting
                           Party less (B) the Termination Currency Equivalent of
                           the Unpaid Amounts owing to the Defaulting Party. If
                           that amount is a positive number, the Defaulting
                           Party will pay it to the Non-defaulting Party; if it
                           is a negative number, the Non-defaulting Party will
                           pay the absolute value of that amount to the
                           Defaulting Party.

                                    (4) Second Method and Loss. If the Second
                           Method and Loss apply, an amount will be payable
                           equal to the Non-defaulting Party's Loss in respect
                           of this Agreement. If that amount is a positive
                           number, the Defaulting Party will pay it to the
                           Non-defaulting Party; if it is a negative number, the
                           Non-defaulting Party will pay the absolute value of
                           that amount to the Defaulting Party.

                           (ii) Termination Events. If the Early Termination
                  Date results from a Termination Event:

                                    (1) One Affected Party. If there is one
                           Affected Party, the amount payable will be determined
                           in accordance with Section 6(c)(i)(3), if Market
                           Quotation applies, or Section 6(e)(i)(4), if Loss
                           applies, except that, in either case, references to
                           the Defaulting Party and to the Non-defaulting Party
                           will be deemed to be references to the Affected Party
                           and the party which is not the Affected Party,
                           respectively, and, if Loss applies and fewer than all
                           the Transactions are being terminated, Loss shall be
                           calculated in respect of all Terminated Transactions.

                                    (2) Two Affected Parties. If there are two
                           Affected Parties:

                                             (A) if Market Quotation applies,
                                    each party will determine a Settlement
                                    Amount in respect of the Terminated
                                    Transactions, and an amount will be payable
                                    equal to (I) the sum of (a) one-half of the
                                    difference between the Settlement Amount of
                                    the party with the higher Settlement Amount
                                    ("X") and the Settlement Amount of the party
                                    with the lower Settlement Amount ("Y") and
                                    (b) the Termination Currency Equivalent of
                                    the Unpaid Amounts owing to X less (II) the
                                    Termination Currency Equivalent of the
                                    Unpaid Amounts owing to Y; and

                                             (B) if Loss applies, each party
                                    will determine its Loss in respect of this
                                    Agreement (or, if fewer than all the
                                    Transactions are being terminated, in
                                    respect of all Terminated Transactions) and
                                    an amount will be payable equal to one-half
                                    of the difference between the Loss of the
                                    party with the higher Loss ("X") and the
                                    Loss of the party with the lower Loss ("Y").

                           If the amount payable is a positive number, Y will
                           pay it to X; if it is a negative number, X will pay
                           the absolute value of that amount to Y.

                           (iii) Adjustment for Bankruptcy. In circumstances
                  where an Early Termination Date occurs because "Automatic
                  Early Termination" applies in respect of a party, the amount
                  determined under this Section 6(e) will be subject to such
                  adjustments as are appropriate and permitted by law to.
                  reflect any payments or deliveries made by one party to the
                  other under this Agreement (and retained by such other party)
                  during the period from the relevant Early Termination Date to
                  the date for payment determined under Section 6(d)(ii).

                           (iv) Pre-Estimate. The parties agree that if Market
                  Quotation applies an amount recoverable under this Section
                  6(e) is a reasonable pre-estimate of loss and not a penalty.
                  Such amount is payable for the loss of bargain and the loss of
                  protection against future risks and except as otherwise
                  provided in this Agreement neither party will be entitled to
                  recover any additional damages as a consequence of such
                  losses.

                                       10                            ISDA(R)1992
<PAGE>   11
7.       Transfer

Subject to Section 6(b)(ii), neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that:

                  (a) a party may make such a transfer of this Agreement
         pursuant to a consolidation or amalgamation with, or merger with or
         into, or transfer of all or substantially all its assets to, another
         entity (but without prejudice to any other right or remedy under this
         Agreement); and

                  (b) a party may make such a transfer of all or any part of its
         interest in any amount payable to it from a Defaulting Party under
         Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8.       Contractual Currency

                  (a) Payment in the Contractual Currency. Each payment under
         this Agreement will be made in the relevant currency specified in this
         Agreement for that payment (the "Contractual Currency"). To the extent
         permitted by applicable law, any obligation to make payments under this
         Agreement in the Contractual Currency will not be discharged or
         satisfied by any tender in any currency other than the Contractual
         Currency, except to the extent such tender results in the actual
         receipt by the party to which payment is owed, acting in a reasonable
         manner and in good faith in converting the currency so tendered into
         the Contractual Currency, of the full amount in the Contractual
         Currency of all amounts payable in respect of this Agreement. If for
         any reason the amount in the Contractual Currency so received falls
         short of the amount in the Contractual Currency payable in respect of
         this Agreement, the party required to make the payment will, to the
         extent permitted by applicable law, immediately pay such additional
         amount in the Contractual Currency as may be necessary to compensate
         for the shortfall. If for any reason the amount in the Contractual
         Currency so received exceeds the amount in the Contractual Currency
         payable in respect of this Agreement, the party receiving the payment
         will refund promptly the amount of such excess.

                  (b) Judgments. To the extent permitted by applicable law, if
         any judgment or order expressed in a currency other than the
         Contractual Currency is rendered (i) for the payment of any amount
         owing in respect of this Agreement, (ii) for the payment of any amount
         relating to any early termination in respect of this Agreement or (iii)
         in respect of a judgement or order of another court for the payment of
         any amount described in (i) or (ii) above, the party seeking recovery,
         after recovery in full of the aggregate amount to which such party is
         entitled pursuant to the judgment or order, will be entitled to receive
         immediately from the other party the amount of any shortfall of the
         Contractual Currency received by such party as a consequence of sums
         paid in such other currency and will refund promptly to the other party
         any excess of the Contractual Currency received by such party as a
         consequence of sums paid in such other currency if such shortfall or
         such excess arises or results from any variation between the rate of
         exchange at which the Contractual Currency is converted into the
         currency of the judgment or order for the purposes of such judgment or
         order and the rate of exchange at which such party is able, acting in a
         reasonable manner and in good faith in converting the currency received
         into the Contractual Currency, to purchase the Contractual Currency
         with the amount of the currency of the judgment or order actually
         received by such party. The term "rate of exchange" includes, without
         limitation, any premiums and costs of exchange payable in connection
         with the purchase of or conversion into Contractual Currency.

                  (c) Separate Indemnities. To the extent permitted by
         applicable law, these indemnities constitute separate and independent
         obligations from the other obligations in this Agreement, will be
         enforceable as separate and independent causes of action, will apply
         notwithstanding any indulgence granted by the party to which any
         payment is owed and will not be affected by judgment being obtained or
         claim or proof being made for any other sums payable in respect of this
         Agreement.

                  (d) Evidence of Loss. For the purpose of this Section 8, it
         will be sufficient for a party to demonstrate that it would have
         suffered a loss bad an actual exchange or purchase been made.

                                       11                           ISDA(R)1992
<PAGE>   12
9.       Miscellaneous

                  (a) Entire Agreement. This Agreement constitutes the entire
         agreement and understanding of the parties with respect to its subject
         matter and supersedes all oral communication and prior writings with
         respect thereto.

                  (b) Amendments. No amendment, modification or waiver in
         respect of this Agreement will be effective unless in writing
         (including a writing evidenced by a facsimile transmission) and
         executed by each of the parties or confirmed by an exchange of telexes
         or electronic messages on an electronic messaging system.

                  (c) Survival of Obligations. Without prejudice to Sections
         2(a)(iii) and 6(c)(ii), the obligations of the parties under this
         Agreement will survive the termination of any Transaction.

                  (d) Remedies Cumulative. Except as provided in this Agreement,
         the rights, powers, remedies and privileges provided in this Agreement
         are cumulative and not exclusive of any rights, powers, remedies and
         privileges provided by law.

                  (e) Counterparts and Confirmations.

                           (i) This Agreement (and each amendment, modification
                  and waiver in respect of it) may be executed and delivered in
                  counterparts (including by facsimile transmission), each of
                  which will be deemed an original.

                           (ii) The parties intend that they are legally bound
                  by the terms of each Transaction from the moment they agree to
                  those terms (whether orally or otherwise). A Confirmation
                  shall be entered into as soon as practicable and may be
                  executed and delivered in counterparts (including by facsimile
                  transmission) or be created by an exchange of telexes or by an
                  exchange of electronic messages on an electronic messaging
                  system, which in each case will be sufficient for all purposes
                  to evidence a binding supplement to this Agreement. The
                  parties will specify therein or through another effective
                  means that any such counterpart, telex or electronic message
                  constitutes a Confirmation.

                  (f) No Waiver of Rights. A failure or delay in exercising any
         right, power or privilege in respect of this Agreement will not be
         presumed to operate as a waiver, and a single or partial exercise of
         any right, power or privilege will not be presumed to preclude any
         subsequent or further exercise, of that right, power or privilege or
         the exercise of any other right, power or privilege.

                  (g) Headings. The headings used in this Agreement are for
         convenience of reference only and are not to affect the construction of
         or to be taken into consideration in interpreting this Agreement.

10.      Offices; Multibranch Parties

                  (a) If Section 10(a) is specified in the Schedule as applying,
         each party that enters into a Transaction through an Office other than
         its head or home office represents to the other party that,
         notwithstanding the place of booking office or jurisdiction of
         incorporation or organisation of such party, the obligations of such
         party are the same as if it had entered into the Transaction through
         its head or home office. This representation will be deemed to be
         repeated by such party on each date on which a Transaction is entered
         into.

                  (b) Neither party may change the Office through which it makes
         and receives payments or deliveries for the purpose of a Transaction
         without the prior written consent of the other party.

                  (c) If a party is specified as a Multibranch Party in the
         Schedule, such Multibranch Party may make and receive payments or
         deliveries under any Transaction through any Office listed in the
         Schedule, and the Office through which it makes and receives payments
         or deliveries with respect to a Transaction will be specified in the
         relevant Confirmation

11.      Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document

                                       12                            ISDA(R)1992
<PAGE>   13
to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12.      Notices

                  (a) Effectiveness. Any notice or other communication in
         respect of this Agreement may be given in any manner set forth below
         (except that a notice or other communication under Section 5 or 6 may
         not be given by facsimile transmission or electronic messaging system)
         to the address or number or in accordance with the electronic messaging
         system details provided (see the Schedule) and will be deemed effective
         as indicated:

                           (i) if in writing and delivered in person or by
                  courier, on the date it is delivered;

                           (ii) if sent by telex, on the date the recipient's
                  answerback is received;

                           (iii) if sent by facsimile transmission, on the date
                  that transmission is received by a responsible employee of the
                  recipient in legible form (it being agreed that the burden of
                  proving receipt will be on the sender and will not be met by a
                  transmission report generated by the sender's facsimile
                  machine);

                           (iv) if sent by certified or registered mail
                  (airmail, if overseas) or the equivalent (return receipt
                  requested), on the date that mail is delivered or its delivery
                  is attempted; or

                           (v) if sent by electronic messaging system, on the
                  date that electronic message is received,

         unless the date of that delivery (or attempted delivery) or that
         receipt, as applicable, is not a Local Business Day or that
         communication is delivered (or attempted) or received, as applicable,
         after the close of business on a Local Business Day, in which case that
         communication shall be deemed given and effective on the first
         following day that is a Local Business Day.

                  (b) Change of Addresses. Either party may by notice to the
         other change the address, telex or facsimile number or electronic
         messaging system details at which notices or other communications are
         to be given to it.

13.      Governing Law and Jurisdiction

                  (a) Governing Law. This Agreement will be governed by and
         construed in accordance with the law specified in the Schedule.

                  (b) Jurisdiction. With respect to any suit, action or
         proceedings relating to this Agreement ("Proceedings"), each party
         irrevocably:

                           (i) submits to the jurisdiction of the English
                  courts, if this Agreement is expressed to be governed by
                  English law, or to the non-exclusive jurisdiction of the
                  courts of the State of New York and the United States District
                  Court located in the Borough of Manhattan in New York City, if
                  this Agreement is expressed to be governed by the laws of the
                  State of New York; and

                           (ii) waives any objection which it may have at
                  anytime to the laying of venue of any Proceedings brought in
                  any such court, waives any claim that such Proceedings have
                  been brought in an inconvenient forum and further waives the
                  right to object, with respect to such Proceedings, that such
                  court does not have any jurisdiction over such party.

         Nothing in this Agreement precludes either party from bringing
         Proceedings in any other jurisdiction (outside, if this Agreement is
         expressed to be governed by English law, the Contracting States, as
         defined in Section 10) of the Civil Jurisdiction and Judgments Act 1982
         or any modification, extension or re-enactment thereof for the time
         being in force) nor will the bringing of Proceedings in any one or more
         jurisdictions preclude the bringing of Proceedings in any other
         jurisdiction.

                  (c) Service of Process. Each party irrevocably appoints the
         Process Agent (if any) specified opposite its name in the Schedule to
         receive, for it and on its behalf, service of process in any
         Proceedings. If for any

                                       13                            ISDA(R)1992
<PAGE>   14
         reason any party's Process Agent is unable to act as such, such party
         will promptly notify the other party and within 30 days appoint a
         substitute process agent acceptable to the other Party. The parties
         irrevocably consent to service of process given in the manner provided
         for notices in Section 12. Nothing in this Agreement will affect the
         right of either party to serve process in any other manner permitted by
         law.

                  (d) Waiver of Immunities. Each party irrevocably waives, to
         the fullest extent permitted by applicable law, with respect to itself
         and its revenues and assets (irrespective of their use or intended
         use), all immunity on the grounds of sovereignty or other similar
         grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by
         way of injunction, order for specific performance or for recovery of
         property, (iv) attachment of its assets (whether before or after
         judgment) and (v) execution or enforcement of any judgment to which it
         or its revenues or assets might otherwise be entitled in any
         Proceedings in the courts of any jurisdiction and irrevocably agrees,
         to the extent permitted by applicable law, that it will not claim any
         such immunity it, any Proceedings.

14.      Definitions

As used in this Agreement:

"Additional Termination Event" has, the meaning specified in Section 5(b).

"Affected Party" has the meaning specified in Section 5(b).

"Affected Transactions" means (a) with respect to any Termination Event
consisting of an Illegality Tax Event or Tax Event Upon Merger, all Transactions
affected by the occurrence of such Termination Event and (b) with respect to any
other Termination Event, all Transactions.

"Affiliate" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"Applicable Rate" means:

                  (a) in respect of obligations payable or deliverable (or which
         would have been but for Section 2(a)(iii)) by a Defaulting Party, the
         Default Rate;

                  (b) in respect of an obligation to pay an amount under Section
         6(e) of either party from and after the date (determined in accordance
         with Section 6(d)(ii)) on which that amount is payable, the Default
         Rate;

                  (c) in respect of all other obligations payable or deliverable
         (or which would have been but for Section 2(a)(iii)) by a
         Non-defaulting Party, the Non-default Rate; and

                  (d) in all other cases, the Termination Rate.

"Burdened Party" has the meaning specified in Section 5(b).

"Change in Tax Law" means the enactment. promulgation, execution or ratification
of or any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

"consent" includes a consent, approval, action, authorisation, exemption,
notice, filing, registration or exchange control consent.

"Credit Event Upon Merger" has the meaning specified in Section 5(b).

"Credit Support Document" means any agreement or instrument that is specified as
such in this Agreement.

"Credit Support Provider" has the meaning specified in the Schedule.

"Default Rate" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

                                       14                            ISDA(R)1992
<PAGE>   15
"Defaulting Party" has the meaning specified in Section 6(a).

"Early Termination Date" means the date determined in accordance with Section
6(a) or 6(b)(iv).

"Event of Default" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"Illegality" has the meaning specified in Section 5(b).

"Indemnifiable Tax" means any Tax other than a Tax that would not be imposed in
respect of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction.
or being or having been organised, present or engaged in a trade or business in
such jurisdiction or having had a permanent establishment or fixed place of
business in such jurisdiction, but excluding a connection arising solely from
such recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

"law" includes any treaty, law, rule or regulation (as modified, in the case of
tax matters, by the practice of any relevant governmental revenue authority) and
"lawful" and "unlawful" will be construed accordingly.

"Local Business Day" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2) in the relevant locations for performance
with respect to such Specified Transaction.

"Loss" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section II. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"Market Quotation" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have

                                       15                           ISDA(R)1992
<PAGE>   16
been required after that date. For this purpose, Unpaid Amounts in respect of
the Terminated Transaction or group of Terminated Transactions are to be
excluded but, without limitation, any payment or delivery that would, but for
the relevant Early Termination Date, have been required (assuming satisfaction
of each applicable condition precedent) after that Early Termination Date is to
be included. The Replacement Transaction would be subject to such documentation
as such party and the Reference Market-maker may, in good faith, agree. The
party making the determination (or its agent) will request each Reference
Market-maker to provide its quotation to the extent reasonably practicable as of
the same day and time (without regard to different time zones) on or as soon as
reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the lowest values. If exactly three such
quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more
than one quotation has the same highest value or lowest value, then one of such
quotations shall be disregarded. If fewer than three quotations are provided, it
will be deemed that the Market Quotation in respect of such Terminated
Transactions or group of Terminated Transactions cannot be determined.

"Non-default Rate" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"Non-defaulting Party" has the meaning specified in Section 6(a).

"Office" means a branch or office of a party, which may be such party's head or
home office.

"Potential Event of Default" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

"Reference Market-makers" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"Relevant Jurisdiction" means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organised. managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

"Scheduled Payment Date" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"Set-off" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by or imposed
on, such payer.

"Settlement Amount" means, with respect to a party and any Early Termination
Date, the sum of:

                  (a) the Termination Currency Equivalent of the Market
         Quotations (whether positive or negative) for each Terminated
         Transaction or group of Terminated Transactions for which a Market
         Quotation is determined; and

                  (b) such party's Loss (whether positive or negative and
         without reference to any Unpaid Amounts) for each Terminated
         Transaction or group of Terminated Transactions for which a Market
         Quotation cannot be determined or would not (in the reasonable belief
         of the party making the determination) produce a commercially
         reasonable result.

"Specified Entity" has the meaning specified in the Schedule.

                                       16                            ISDA(R)1992
<PAGE>   17
"Specified Indebtedness" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"Specified Transaction " means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange, transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b)these transactions and
(c) any other transaction identified as a Specified Transaction in this
Agreement or the relevant confirmation.

"Stamp Tax" means any stamp, registration, documentation or similar tax.

"Tax" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

"Tax Event" has the meaning specified in Section 5(b).

"Tax Event Upon Merger" has the meaning specified in Section 5(b).

"Terminated Transactions" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"Termination Currency" has the meaning specified in the Schedule.

"Termination Currency Equivalent" means, in respect of any amount denominated in
the Termination Currency, such Termination Currency amount and, in respect of
any amount denominated in a currency other than the Termination Currency (the
"Other Currency"), the amount in the Termination Currency determined by the
party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if
the relevant Market Quotation or Loss (as the case may be), is determined as of
a later date, that later date, with the Termination Currency at the rate equal
to the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the parties.

"Termination Event" means an Illegality, a Tax Event or a Tax Event Upon Merger
or, if specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

"Termination Rate" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"Unpaid Amounts" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section, 2(a)(iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market

                                       17                            ISDA(R)1992
<PAGE>   18
value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

DEUTSCHE BANK AG                                 MBIA, INC.
(Name of Party)                                  (Name of Party)

By:   /s/ A. Levenson                            By:  /s/ Joseph . Sevely
Name: A. Levenson                                Name: Joseph Sevely
Title:                                           Title: Treasurer
Date:                                            Date: May 3, 2000

By: /s/ D. Nestler
Name: D. Nestler
Title:

                                       18                            ISDA(R)1992

<PAGE>   19
                                    SCHEDULE
                                     to the
                              ISDA Master Agreement

                             dated as of May 2, 2000
                                     between
                          Deutsche Bank AG ("Party A"))
                                       and
                             MBIA, Inc. ("Party B")

Part 1. Termination Provisions.

         (a) "Specified Entity" means:

                  (i) in relation to Party A: Not Applicable

                  (ii) in relation to Party B: Not Applicable

         (b) "Specified Transaction" shall have the meaning specified in Section
14 of this Agreement save that Section 14 shall be hereby amended by adding the
text "commodity transaction, credit derivative transaction, repurchase or
reverse repurchase transaction, securities lending transaction" after the words
"foreign exchange transaction" in the sixth line thereof.

         (c) The "Cross Default" provisions of Section 5(a)(vi) will apply to
both parties subject to amendment by adding at the end thereof the following
words:

"and in either case, the other party determines in good faith that it has
reasonable grounds to conclude that the performance by the Defaulting Party of
its financial obligations hereunder is endangered."

With regard to Party A, "Threshold Amount" means 2% of its shareholders' equity
(i.e., the sum of capital and disclosed reserves as reported in the most
recently published annual audited consolidated financial statements of Deutsche
Bank AG).

With regard to Party B or any Credit Support Provider, "Threshold Amount" means
2% of its shareholders' equity (as calculated in accordance with generally
accepted accounting principles applicable to it).

         (d) The "Credit Event Upon Merger" provision of Section 5(b)(iv) will
apply to both Party A and Party B.

                                       19
<PAGE>   20
         (e) The "Automatic Early Termination" provision of Section 6(a) will
not apply to Party A and will not apply to Party B.

         (f) Payments on Early Termination. For the purpose of Section 6(e) of
this Agreement:

                  (i)Loss will apply. (ii)The Second Method will apply.

"Termination Currency" means United States Dollars.

         (h) "Additional Termination Event" will not apply to either party.

Part 2. Tax Representations.

         (a) Payer Tax Representations. For the purposes of Section 3(e) of this
Agreement, Party A and Party B will each make the following representations to
the other:

It is not required by any applicable law, as modified by the practice of any
relevant governmental revenue authority, of any Relevant Jurisdiction to make
any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(10 or 6(e) of this Agreement) to
be made by it to the other party under this Agreement. In making this
representation, each party may rely on:

                  (i)the accuracy of any representations made by the other party
         pursuant to Section 3(f) of this Agreement;

                  (ii)the satisfaction of the agreement of the other party
         contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the
         accuracy and effectiveness of any document provided by the other party
         pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement, and

                  (iii)the satisfaction of the agreement of the other party
         contained in Section 4(d) of this Agreement,

provided that it shall not be a breach of this representation where reliance is
placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice to its legal or
commercial position.

         (b) Payee Tax Representations. For the purpose of Section 3(f) of this
Agreement, Party A and Party B each represent to the other that, in respect of
each Transaction which it enters into through an Office or discretionary agent
in the United States of America ("U.S."),

                                       20
<PAGE>   21
each payment received or to be received by it under that Transaction will be
effectively connected with its conduct of a trade or business in the U.S.

Part 3. Documents to be delivered.

         (a) For the purpose of Section 4(a)(i), the documents to be delivered
are:

<TABLE>
<CAPTION>
Party required to              Form/Document/                       Date by which to be          Section
deliver document               Certificate                          delivered                    3(d) Representation

<S>                            <C>                                  <C>                          <C>
Party A                        An executed United                   (i) Upon execution of        Not Applicable
                               States Internal                      this Agreement, (ii)
                               Revenue Service Form                 promptly upon
                               W-8ECI (or any                       reasonable demand by
                               successor thereto) and               Party B and (iii)
                               an executed United                   promptly upon
                               States Internal                      learning that any such
                               Revenue Service Form                 form previously
                               W-8BEN (or any                       provided by Party A
                               successor thereto).                  has become obsolete
                                                                    or incorrect.

Party B                        An executed United                    (i) Upon execution of       Not Applicable
                               States Internal                       this Agreement, (ii)
                               Revenue Service Form                  promptly upon
                               W-8ECI (or any                        reasonable demand by
                               successor thereto),                   Party A and (iii)
                               Form W-8BEN (or                       promptly upon
                               any successor thereto),               learning that any such
                               or W-9 (or any                        form previously
                               successor thereto), as                provided by Party B
                               applicable.                           has become obsolete
                                                                     or incorrect.
</TABLE>

         (b) For the purposes of Section 4(a)(11), the other documents to be
delivered are as follows:

                                       21
<PAGE>   22
<TABLE>
<CAPTION>
Party required to              Form/Document/                        Date by which to be         Section 3(d)
deliver document               Certificate                           delivered                   representation:

<S>                            <C>                                   <C>                         <C>
Party A and                    Evidence of the                       Upon or prior to the        Applicable
Party B                        authority, incumbency                 execution and delivery
                               and specimen                          of this Agreement and,
                               signature of each                     with respect to any
                               person executing this                 Confirmation upon
                               Agreement or any                      request by the other
                               Confirmation, Credit                  party.
                               Support Document or
                               other document
                               entered into in
                               connection with this
                               Agreement on its
                               behalf or on behalf of
                               a Credit Support
                               Provider or otherwise,
                               as the case may be.

Party A and                    A copy of the most                    Promptly after request      Applicable
Party B                        recent annual report                  by the other party.
                               containing consolidated
                               financial statements of
                               each party or its Credit
                               Support Provider, if
                               any, and such other public
                               information respecting
                               the condition or operations,
                               financial or otherwise of such
                               party or its Credit Support
                               Provider, if any, as the other
                               party may reasonably request from
                               time to time.

Party A and Party B            A duly executed and                   As of execution of this     Applicable
                               delivered copy of the                 Agreement
                               Credit Support
                               Document.
</TABLE>

                                       22

<PAGE>   23
<TABLE>
<S>                            <C>                                   <C>                         <C>
Party A and Party B            Legal opinions in                     As of execution of this     Applicable
                               form and substance                    Agreement
                               satisfactory to the
                               other party.
</TABLE>

Part 4. Miscellaneous.

(a) Address for Notices. For the purpose of Section 12(a) of this Agreement, the
addresses for notices and communications to Party A and Party B shall be as
follows:

         TO PARTY A:

                  (i)

         Deutsche Bank AG, Head Office
         Taunusanlage 12
         60262 Frankfurt
         GERMANY
         Attention: Legal Department
         Telex No: 411836 or 416731 or 41233
         Answerback: DBF-D

                  (ii) All notices to Party A (other than those provided for in
         paragraph (i) above) shall be sent directly to the office through which
         Party A is acting for the relevant Transaction, using the address and
         contact particulars specified in the Confirmation for the purposes of
         confirming that Transaction. If no such particulars are so specified,
         such notices shall be sent to the address of the relevant office set
         out below:

                                       23

<PAGE>   24
<TABLE>
<CAPTION>
Where Party A is acting through its                              Where Party A is acting through its
Frankfurt Head Office:                                           London Branch:

<S>                                                              <C>
Deutsche Bank AG, Head Office                                    Deutsche Bank AG, London Branch
Taunusanlage 12                                                  6, Bishopsgate
60262 Frankfurt                                                  London EC2N 4DA
GERMANY                                                          UNITED KINGDOM
Attention: Trading & Sales/Evidenz                               Attn: OTC Derivatives
Tel: (49)(69) 910 33339                                          Tel: (44)(171) 545 8000
Fax No: (49) (69) 910-38406                                      Fax: (44)(171) 545 4455
Telex No: 41730-701                                              Telex: 94015555
Answerback: 41730-702 FMD                                        Answerback: DBLN G

Where Party A is acting through its New York Branch:

Deutsche Bank AG, New York Branch
31 W. 52nd Street
New York, New York 10019
USA
Attn: Swap Group
Tel: (1)(212) 469-4338
Fax: (1)(212) 469-4654
Telex: 429166
Answerback: DEUTNYK

TO PARTY B:

MBIA, Inc.
113 King St.
Armonk, NY 10504
Attention: Treasurer
Fax No: (914) 765-3375
</TABLE>

and for purposes of notices under Sections 5 or 6 of the Agreement (other than
notices under Section 5(a)(i)), a copy to:

MBIA, Inc.
113 King St.
Armonk, NY 10504
Attention: General Counsel
Fax No: (914) 765-3919

                                       24

<PAGE>   25
         (b) Process Agent. For the purposes of Section 13(c) of this Agreement:

             Party A appoints as its Process Agent:      Not applicable.

             Party B appoints as its Process Agent:      Not applicable.

         (c) Offices. The provisions of Section 10(a) will apply to this
Agreement.

         (d) Multibranch Party. For purposes of Section 10(c) of this Agreement:

                  (i) Party A is a Multibranch Party and may act through the
         following offices:

                  New York Branch, London Branch and Head Office, Frankfurt

                  (ii) Party B is not a Multibranch Party

         (e) The Calculation Agent shall be Party A.

         (f) Credit Support Document. Details of any Credit Support Document:

         With respect to Party A and Party B: the Credit Support Annex attached
         hereto and incorporated herein by reference.

         (g) Credit Support Provider. Credit Support Provider means in relation
to Party A and Party B:

         Not applicable

         (h) Governing Law. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York (without
reference to its choice of law doctrine).

                  (i) "Affiliate" will have the meaning specified in Section 14
         of this Agreement.

Part 5. Other Provisions.

         (a) Representations.

                  (i) Non-Reliance, Etc. Each party will be deemed to represent
         to the other party on the date that it enters into a Transaction that
         (absent a written agreement between the parties that expressly imposes
         affirmative obligations to the contrary for that Transaction):

                                       25

<PAGE>   26
         (1) Non-Reliance. It is acting for its own account, and it has made its
own independent decisions to enter into that Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment and upon
advice from such advisers as it has deemed necessary. It is not relying on any
communication (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that
information and explanations related to the terms and conditions of a
Transaction shall not be considered to be investment advice or a recommendation
to enter into that Transaction. No communication (written or oral) received from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of that Transaction.

         (2) Assessment and Understanding. It is capable of assessing the merits
of and understanding (on its own behalf or through independent professional
advice), and understands and accepts the terms and conditions and risks of that
Transaction. It is also capable of assuming, and assumes, the risks of that
Transaction.

         (3) Status of Parties. The other party is not acting as a fiduciary for
or adviser to it in respect of that Transaction.

                  (ii) Commodity Exchange Act. Each party represents to the
         other party on and as of the date hereof and on each date on which a
         Transaction is entered into between them that:

         (1) each Transaction is intended to be exempt from, or otherwise not
subject to regulation under, the Commodity Exchange Act;

         (2) such party is an "eligible swap participant" within the meaning of
CFTC Regulation Section 35.1(b)(2); and

         (3) such party is entering into each Transaction in connection with its
line of business and not for purposes of speculation.

                  (iii) Securities Act Representations. Each party represents to
         the other party (which representations will be deemed to be repeated by
         each party on each date on which a Transaction is entered into) that:

         (1) it acknowledges that certain Transactions under the Agreement may
involve the purchase or sale of "securities" as defined under the U.S.
Securities Act of 1933, as amended (the "Securities Act") and understands that
any such purchase or sale of securities will not be registered under the
Securities Act and that any such securities may not be reoffered, resold,

                                       26
<PAGE>   27
pledged or otherwise transferred except (1) pursuant to an effective
registration statement under the Securities Act or pursuant to an exemption from
the registration requirements of the Securities Act and (2) in accordance with
any applicable securities laws of any state of the United States.

         (2) it is a "qualified institutional buyer" as defined in Rule 144A
under the Securities Act, or an "accredited investor" as defined under the
Securities Act; and

         (3) unless otherwise expressly provided in a Confirmation for a
Transaction, any securities it is required to deliver under this Agreement and
any Transaction will ' not at the time of such delivery constitute "restricted
securities" or be subject to restrictions on transfer (including so-called
"control securities") under the Securities Act (as defined above) or otherwise.
This representation will be deemed repeated at the time of such delivery.

                  (b) Consent to Recording.

Each party (i) consents to the recording of the telephone conversations of
trading and marketing and/or other personnel of the parties and their Affiliates
in connection with this Agreement or any potential Transaction (ii) agrees to
obtain any necessary consent of and give notice of such recording to such
personnel of it and its Affiliates; and (iii) agrees that recordings may be
submitted in evidence in any Proceedings relating to this Agreement.

                  (c) Tax Provisions.

                           (i) The definition of Tax Event, Section 5 (b)(ii),
                  is hereby modified by adding the

following provision at the end thereof

"provided, however, that for purposes of clarification, the parties acknowledge
that the introduction or proposal of legislation shall not, in and of itself,
give rise to a presumption that a Tax Event has occurred."

                           (ii) The definition of term "Indemnifiable Tax" is
                  amended by adding the following provisions at the end thereof.

"Notwithstanding the foregoing, Indemnifiable Tax" also means any Tax imposed in
respect of a payment under this Agreement by reasons of a Change in Tax Law by a
government or taxing authority of a Relevant Jurisdiction of the party making
such payment, unless the other party is incorporated, organized, managed and
controlled or considered to have its

                                       27
<PAGE>   28
seat in such jurisdiction, or is acting for purposes of this Agreement through a
branch or office located in such jurisdiction."

         5. Set-off

Section 6 of this Agreement is amended by the addition of the following Sections
6(f) at the end thereof:

                  (f) Any amount (the "Early Termination Amount") payable to one
         party (the "Payee") by the other party (the "Payer") under Section
         6(e), in circumstances where there is a Defaulting Party or one
         Affected Party in the case where a Termination Event under Section
         5(b)(iv) has occurred, will, at the option of the party ("X") other
         than the Defaulting Party or the Affected Party (and without prior
         notice to the Defaulting Party or the Affected Party), be reduced by
         being set-off against any amount(s) (the "Other Agreement Amount")
         payable (whether at such time or in the future or upon the occurrence
         of a contingency) by the Payee to the Payer (irrespective of the
         currency, place of payment or booking office of the obligation) under
         any other agreements) between the Payee and the Payer or instrument(s)
         or undertaking(s) issued or executed by one party to, or in favor of,
         the other party (and the Other Agreement Amount will be discharged
         promptly and in all respects to the extent it is so set-off). X will
         give notice to the other party of any set-off effected under this
         Section 6(f). For the purpose of this provision, either the Early
         Termination Amount or the Other Agreement Amount (or the relevant
         portion of such amounts) may be converted by X into the currency in
         which the other is denominated at the rate of exchange at which such
         party would be able, acting in a reasonable manner and in good faith,
         to purchase the relevant amount of such currency. If an obligation
         under this provision is unascertained, X may in good faith estimate
         such amount and effect a set-off hereunder in the amount of such
         estimate, subject to the relevant party accounting to the other when
         the amount of the obligation is ascertain. Nothing in this Section 6(f)
         shall be effective to create a charge or other security interest. This
         Section shall be without prejudice and in addition to any right of
         set-off, combination of accounts, lien or other right to which any
         party is at any time otherwise entitled (whether by operation of law,
         contract or otherwise)."

                  (e) Escrow.

On any date on which both parties are required to make payments hereunder,
either party may at its option and in its sole discretion notify the other party
that payments on that

                                       28
<PAGE>   29
date are to be made in escrow. In this case deposit of the payment due earlier
on that date shall be made by 2:00 p.m. (local time at the place for the earlier
payment if there is a time difference between the cities in which payments are
to be made) on that date with an escrow agent selected by the party giving the
notice and reasonably acceptable to the other party, accompanied by irrevocable
payment instructions (a) to release the deposited payment to the intended
recipient upon receipt by the escrow agent of the required deposit of the
corresponding payment from the other party on the same date accompanied by
irrevocable payment instructions to the same effect or (b) if the required
deposit of the corresponding payment is not made on that same date, to return
the payment deposited to the party that paid it into escrow at such party's
request. The party that elects to have payments made in escrow shall pay the
costs of the escrow arrangements and shall cause those arrangements to provide
that the intended recipient of the payment due to be deposited first shall be
entitled ' to interest on that deposited payment for each day in the period of
its deposit at the rate offered by the escrow agent for that day for overnight
deposits in the relevant currency in the office where it holds that deposited
payment (at 11:00 a.m. local time on that day) if that payment is not released
by 5:00 p.m. local time on the date it is deposited for any reason other than
the intended recipient's failure to make the escrow deposit it is required to
make hereunder in a timely fashion.

Additional Acknowledgments and Agreements of the Parties.

                           (i) Deutsche Bank Securities Inc. Each party
                  acknowledges and agrees that (i) Deutsche Bank Securities Inc.
                  or another designated Affiliate of Party A (the "Designated
                  Agent") will act as agent for Party A in connection with
                  certain Transactions when so specified in the Transaction
                  Confirmation; and (ii) the Designated Agent is acting solely
                  as agent and shall have no liability for the performance of
                  either party's obligations under this Agreement or any
                  Transaction, or for costs, expenses, damages or claims arising
                  out of the failure of either party to perform any such
                  obligation.

                           (ii) Bankruptcy Code. Without limiting the
                  applicability if any, of any other provision of the U.S.
                  Bankruptcy Code as amended (the "Bankruptcy Code") (including
                  without limitation Sections 362, 546, 556, and 560 thereof and
                  the applicable definitions in Section 101 thereof), the
                  parties acknowledge and agree that all Transactions entered
                  into hereunder will constitute "forward contracts" or "swap
                  agreements" as defined in Section 101 of the Bankruptcy Code
                  or "commodity contracts" as defined in Section 761 of the
                  Bankruptcy Code, that the rights of the parties under Section
                  6 of this Agreement will constitute contractual rights to
                  liquidate Transactions, that any margin or collateral provided
                  under any margin, collateral, security, pledge, or similar
                  agreement related hereto will constitute a "margin payment" as
                  defined in Section 101 of the Bankruptcy Code, and that the
                  parties are entities entitled to the rights under, and
                  protections afforded by, Sections 362, 546, 556, and 560 of
                  the Bankruptcy Code.

                                       29

<PAGE>   30

                           (iii) Waiver of Right to Trial by Jury. Each of the
                  parties hereby irrevocably waives any and all right to a trial
                  by jury with respect to any legal proceeding arising out of or
                  relating to this Agreement or any Transaction.

                  (g) Confirmations for Foreign Exchange Transactions.

                           (i) With effect from the date hereof, any FX
                  Transaction or Currency Option (as defined in the 1998 FX and
                  Currency Option Definitions, as published by the International
                  Swaps and Derivatives Association, Inc., the Emerging Markets
                  Traders Association and The Foreign Exchange Committee (the
                  "FX Definitions")) which the parties may enter or may have
                  entered into prior to the date hereof, in respect of which the
                  Confirmation fails by its terms expressly to exclude the
                  application of this Agreement, shall (to the extent not
                  otherwise provided for in this Agreement) be deemed to
                  incorporate the terms of and shall be governed by and be
                  subject to this Agreement (in substitution for any existing
                  terms, if any, whether express or implied) and, for the
                  purposes hereof, shall be deemed to be a Transaction.

                           (ii) Where a Transaction is confirmed by means of
                  exchange of electronic messages on an electronic messaging
                  system or other document or other confirming evidence
                  exchanged between the parties confirming such Transaction such
                  messages, document or evidence will constitute a Confirmation
                  for the purposes of this Agreement even where not so specified
                  therein.

                           (iii) Reference is made to the FX Definitions with
                  respect to any FX Transaction or Currency Option. Unless
                  other-wise specified in a Confirmation relating to a FX
                  Transaction or a Currency Option, any terms used in that
                  Confirmation which are not otherwise defined herein and which
                  are contained in the FX Definitions shall have the meaning set
                  forth in those definitions. In the event of any inconsistency
                  between the provisions of this Agreement and the FX
                  Definitions, the provisions of this Agreement shall prevail.

                  (h) Premium Payments

If any Premium relating to a Currency Option is not received on the Premium
Payment Date, the Seller may elect: (1) to accept a late payment of such
Premium; (2) to give written notice of such non-payment and, if such payment
shall not be received within two (2) Local Business Days of such notice, treat
the related Currency Option as void; or (3) to give written notice of such
non-payment and, if such payment shall not be received within two (2) Local
Business Days of such notice, treat such non-payment as an Event of Default
under Section 5(a)(i). If the Seller elects to act under either clause (1) or
(2) of the preceding sentence, the Buyer shall pay all out-of-pocket costs and
actual damages incurred in connection with such unpaid or late Premium or void
Currency Option, including, without limitation, interest on such Premium in the
same currency as such

                                       30
<PAGE>   31
Premium at the then prevailing market rate and any other costs or expenses
incurred by the Seller in covering its obligations (including, without
limitation, any hedge) with respect to such Currency Option.

DEUTSCHE BANK AG                       MBIA, INC.
By: /s/A. Levenson                     By:
    -----------------------                ----------------------------
    Name: A. Levenson                      Name:
    Title:                                 Title:
    Date:                                  Date:

By: /s/D. Nestler                       By: /s/ Joseph Sevely
    -----------------------                ----------------------------
    Name: D. Nestler                       Name: Joseph Sevely
    Title:                                 Title: Treasurer
    Date:                                  Date:  May 3, 2000

                                       31
<PAGE>   32
Paragraph 13. Elections and Variables

                  (a) Security Interest for "Obligations". The term
         "Obligations" as used in this Annex includes the following additional
         obligations.

With respect to Party A and Party B: Inapplicable.

                  (b) Credit Support Obligations.

                           (i) Delivery Amount, Return Amount and Credit Support
                  Amount.

                                    (A) "Delivery Amount" has the meaning
                           specified in Paragraph 3(a).

                                    (B) "Return Amount" has the meaning
                           specified in Paragraph 3(b).

                                    (C) "Credit Support Amount" has the meaning
                           specified in Paragraph 3, except that, if an
                           Independent Amount or Independent Amounts are
                           specified for a party, the Credit Support Amount for
                           such party will never be less than the aggregate of
                           all Independent Amounts applicable to that party.

                           (ii) Eligible Collateral. The following items will
                  qualify as "Eligible Collateral" for the party specified:

<TABLE>
<CAPTION>
                                                              Party A            Party B                  Valuation
                                                                                                          Percentage
<S>                                                           <C>                <C>                      <C>
(A) Cash                                                          [X]              [X]                        100%

(B) negotiable debt obligations issued by the U.S.                [X]              [X]                         98%
Treasury Department having a remaining maturity of
less than one year

(C) negotiable debt obligations issued by the U.S.                [X]              [X]                         95%
Treasury Department having a remaining maturity of
1-10 years

(D) negotiable debt obligations issued by the U.S.                [X]              [X]                         90%
Treasury Department having a remaining maturity of
more than 10 years

(E)single-class mortgage participation certificates               [X]              [X]                         90%
("FHLMC Certificates") in book-entry form backed by
single-family residential mortgage loans, the full and
timely payment of interest at the applicable certificate
rate and the ultimate collection of principal of which
are guaranteed by the Federal Home Loan Mortgage
Corporation (excluding Real Estate Mortgage
Investment Conduit ("REMIC") or other multi-class
Pass-through certificates, collateralized mortgage
obligations, pass-through certificates backed by
adjustable rate mortgages, securities paying interest or
principal only and similar derivative securities);
</TABLE>

                                       32
<PAGE>   33

<TABLE>
<S>                                                           <C>                <C>                      <C>
(F) single-class mortgage pass-through certificates               [X]             [X]                         90%
("FNMA Certificates") in book-entry form backed by
single-family residential mortgage loans, the full and
timely payment of interest at the applicable certificate
rate and ultimate collection of principal of which are
guaranteed by the Federal National Mortgage
Association (excluding REMIC or other multi-class
pass-through certificates, pass-through certificates
backed by adjustable rate mortgages collateralized
mortgage obligations, securities paying interest or
principal only and similar derivative securities);

(G) single-class fully modified pass-through certificates          [X]           [X]                          90%
("GNMA Certificates" in book-entry form backed by
single-family residential mortgage loans, the full and
timely payment of principal and interest of which is
guaranteed by the Government National Mortgage
Association (excluding REMIC or other multi-class
Pass-through certificates, collateralized mortgage
obligations, pass-through certificates backed by
adjustable rate mortgages, securities paying interest
or principal only and similar derivatives securities).

(H) Such other collateral as Party A and Party B may               [X]           [X]                         As may be agreed
</TABLE>

                           (iii) Other Eligible Support. The following items
                  will qualify as "Other Eligible Support" for the party
                  specified:

<TABLE>
<CAPTION>
                                                                       Party A                 Party B

<S>                                                                    <C>                     <C>
(A) Inapplicable                                                         [ ]                     [ ]

(B) Inapplicable                                                         [ ]                     [ ]
</TABLE>

                                       33
<PAGE>   34
                           (iv) Thresholds.

                                    (A) "Independent Amount" means with respect
                           to Party A: $ Inapplicable

"Independent Amount" means with respect to Party B:  $ Inapplicable

                                    (B) "Threshold" means, with respect to each
                           Party A and Party B, the amount set forth opposite
                           the lower of the ratings in the table set forth below
                           in effect on any Valuation Date for the
                           unsubordinated, unsecured, long-term debt of Party A
                           or of Party B, respectively;

provided however that if the unsubordinated, unsecured, long-term debt of Party
A or of Party B ceases to be rated by either Standard & Poor's Ratings Services,
a division of the McGraw-Hill Companies ("S&P") or Moody's Investors Service
("Moody's"), then the rating by whichever of S&P or Moody's that has continued
to rate the unsubordinated, unsecured, long-term debt of such entity shall be
used as the sole rating of such entity for purposes of this table; and

provided further that, if

                           (x) an Event of Default, Potential Event of Default,
                  Termination Event, Additional Termination Event or Specified
                  Condition has occurred and is continuing with respect to (i)
                  Party A or (ii) Party B or

                           (y) (i) Party A or (ii) of Party B has no
                  unsubordinated, unsecured, long-term debt rated by either
                  Standard & Poor's Corporation or Moody's,

then the Threshold of the applicable party shall be zero.

<TABLE>
<CAPTION>
Rating by S&P                           Rating by Moody's                      Threshold in Dollars
<S>                                     <C>                                    <C>
AAA to AA-                              Aaa to Aa3                             $75,000,000.00
A+                                      Al                                     $5,000,000.00
A&A-                                    A2 & A3                                $3,000,000
BBB+ or below                           Baa 1                                  $0
</TABLE>

                                    (C) "Minimum Transfer Amount" means with
                           respect to Party A: $250,000; provided, however, that
                           the Minimum Transfer Amount for such party shall be
                           zero upon the occurrence and during the continuance
                           of an Event of Default, Potential Event of Default,
                           Termination Event, Additional Termination Event, or
                           Specified Condition with respect to such party.

                                    "Minimum Transfer Amount" means with respect
                           to Party B: $250,000; provided, however, that the
                           Minimum Transfer Amount for such party shall be zero
                           upon the occurrence and during the continuance of an
                           Event of Default, Potential Event of Default,
                           Termination Event, Additional Termination Event, or
                           Specified Condition with respect to such party.

                                       34
<PAGE>   35
                                    (D) Rounding. The Delivery Amount and the
                           Return Amount will be rounded up and down to the
                           nearest integral multiple of $50,000.00,
                           respectively, or to zero, in the case of a return
                           amount lower than $50,000.00.

                  (c) Valuation and Timing.

                           (i) "Valuation Agent" means:, for purposes of
                  Paragraphs 3 and 5, the party making the demand under
                  Paragraph 3, and, for purposes of Paragraph 6(d), the Secured
                  Party receiving or deemed to receive the Distributions or the
                  Interest Amount, as applicable.

                           (ii) "Valuation Date" means: Any Local Business Day.

                           (iii) "Valuation Time" means:

[ ] the close of business in the city of the Valuation Agent on the Valuation
Date or date of calculation, as applicable;

[X] the close of business on the Local Business Day before the Valuation Date or
date of calculation, as applicable;

provided that the calculations of Value and Exposure will be made as of
approximately the same time on the same date.

                           (iv) "Notification Time" means 1:00pm, New York time,
                  on a Local Business Day.

                           (v) "Exposure" has the meaning provided in Paragraph
                  12 except that the proviso in the definition of "Exposure" is
                  deleted and the following is substituted therefor: "provided,
                  that Market Quotation will be determined by the Valuation
                  Agent (i) in respect of any equity-based total return swap,
                  using the closing price or last sale price (as applicable) of
                  each stock, basket, or index (as applicable) on the relevant
                  determination date or (ii) in respect of any other Transaction
                  type (including, without limitation, equity-related option)
                  using its good faith estimate at mid-market of the amounts
                  that would be payable for Replacement Transactions (as that
                  term is defined in the definition of "Market Quotation").

         (d) Conditions Precedent and Secured Party's Rights and Remedies. Each
Termination Event specified below with respect to a party will be a "Specified
Condition" for that party (the specified party being the Affected Party if a
Termination Event or Additional Termination Event occurs with respect to that
party):

<TABLE>
<CAPTION>
                                                   Party A                   Party B

<S>                                                <C>                       <C>
Illegality                                           [X]                       [X]
Tax Event                                            [ ]                       [ ]
Tax Event Upon Merger                                [ ]                       [ ]
Credit Event Upon Merger                             [X]                       [X]
The Additional Termination Events
specified in Part I of the Schedule to
this Agreement or any event which,
with the giving of notice or the lapse of
time or both, would constitute an
Additional Termination Event.
</TABLE>

         (e) Substitution.

                                       35
<PAGE>   36
                           (i) "Substitution Date" has the meaning specified in
                  Paragraph 4(d)(ii).

                           (ii) Consent. If specified here as applicable, then
                  the Pledgor must obtain the Secured Party's consent for any
                  substitution pursuant to Paragraph 4(d): Inapplicable

         (f) Dispute Resolution.

                           (i) "Resolution Time" means 1:00 p.m., New York time,
                  on the Local Business Day following the date on which the
                  notice is given that gives rise to a dispute under Paragraph
                  5.

                           (ii) Value. For the purpose of Paragraphs 5(i)(C) and
                  5(ii), the Value of Posted Credit Support will be calculated
                  as follows: as set forth for other purposes in Paragraph 12.

                           (iii) Alternative. The provisions of Paragraph 5 will
                  apply, except to the following extent: (A) pending the
                  resolution of a dispute, Transfer of the undisputed Value of
                  Eligible Credit Support or Posted Credit Support involved in
                  the relevant demand will be due as provided in Paragraph 5 if
                  the demand is given by the Notification Time, but will be due
                  on the second Local Business Day after the demand if the
                  demand is given after the Notification Time; and (B) the
                  Disputing Party need not comply with the provisions of
                  Paragraph 5(11)(2) if the amount to be Transferred does not
                  exceed the Disputing Party's Minimum Transfer Amount.

                  (g) Holding and Using Posted Collateral.

                           (i) Eligibility to Hold Posted Collateral,
                  Custodians. Party A and its Custodian will be entitled to hold
                  Posted Collateral pursuant to Paragraph 6(b); provided that
                  the following conditions applicable to it are satisfied:

                                    (A) Party A is not a Defaulting Party.

                                    (B) Posted Collateral may be held only in
                           the following jurisdictions: New York.

Initially, the Custodian for Party A is: Deutsche Bank AG New York Branch.

Party B and its Custodian will be entitled to hold Posted Collateral pursuant to
Paragraph 6(b); provided that the following conditions applicable to it are
satisfied:

                                    (A) Party B is not a Defaulting Party.

                                    (B) Posted Collateral may be held only in
                           the following jurisdictions: New York.

                                    (C) In the event that the Custodian holds
                           Posted Collateral, the long-term unsubordinated
                           unsecured debt of the Custodian is rated at least A
                           by Standard & Poors, a division of The McGraw-Hill
                           Companies, Inc. (or any successor thereto) and at
                           least A2 by Moody's Investors Service, Inc. (or any
                           successor thereto).

Initially, the Custodian for Party B is: as agreed upon from time to time.

                           (ii) Use of Posted Collateral. The provisions of
                  Paragraph 6(c) will not apply to Party A and Party B.

                  (h) Distributions and Interest Amount.

                           (i) Interest Rate. The "Interest Rate" will be with
                  respect to Eligible Collateral in the form of Cash, for any
                  day, the rate opposite the caption "Federal Funds (Effective)"
                  for such day as published for such

                                       36
<PAGE>   37
                  day in Federal Reserve Publication H.15(519) or any successor
                  publication as published by the Board of Governors of the
                  Federal Reserve System.

                           (ii) Transfer of interest Amount. The Transfer of the
                  Interest Amount will be made on the first Local Business Day
                  of each calendar month and on any Local Business Day that
                  Posted Collateral in the form of Cash is Transferred to the
                  Pledgor pursuant to Paragraph 3(b).

                           (iii) Alternative to Interest Amount. The provisions
                  of Paragraph 6(d)(ii) will apply.

                  (i) Other Eligible Support and Other Posted Support.

                           (i) "Value" with respect to Other Eligible Support
                  and Other Posted Support means: Inapplicable

                           (ii) "Transfer" with respect to Other Eligible
                  Support and Other Posted Support means: Inapplicable

                  (j) Demands and Notices. All demands, specifications and
         notices under this Annex will be made pursuant to the Notices Section
         of this Agreement, unless otherwise specified here:

Party A:                    Deutsche Bank AG
                            31 West 52nd Street
                            New York, NY  10019
                            Attention: Global Margin Management

Party B:                    MBIA, Inc.
                            113 King St.
                            Armonk, NY  10504
                            Attention: Treasurer
                            Fax No: (914) 765-3375

                  (k) Addresses for Transfers

Party A:          For Cash: DBAG NY, ABA: 026003780, Ref: A C# [to be provided]

                  For Eligible Collateral:  Bank of NYC / DBNYC, ABA: 021000018,
                                            Ref. GMM /[Client name]

Party B:          To be provided.

                  (l) Other Provisions.

                           (i) Limit on Secured Party's Liability. The Secured
                  Party will not be liable for any losses or damages that the
                  Pledgor may suffer as a result of any failure by the Secured
                  Party to perform, or any delay by it in performing, any of its
                  obligations under this Annex if the failure or delay results
                  from circumstances beyond the reasonable control of the
                  Secured Party or its Custodian, such as interruption or loss
                  of computer or communication services, labor disturbance,
                  natural disaster or local or national emergency.

                           (ii) Further Assurances. If the Pledgor fails (a) to
                  execute and deliver to the Secured Party such financing
                  statements, assignments, or other documents or (b) to do such
                  other things relating to the Posted Collateral as the Secured
                  Party may reasonably request in order to protect and maintain
                  its security interest in the Posted Collateral and to protect,
                  preserve, and realize upon the Posted Collateral, then the
                  Secured Party is hereby authorized by the Pledgor (but not
                  required) to complete and execute such financing

                                       37
<PAGE>   38
                  statements, assignments, and other documents as the Secured
                  Party deems appropriate for such purposes. The Pledgor hereby
                  appoints the Secured Party, during the term of this Agreement,
                  as the Pledgor's agent and attorney-in-fact to complete and
                  execute such financing statements, assignments and other
                  documents and to perform all other acts which the Secured
                  Party may deem appropriate to protect and maintain its
                  security interest in the Posted Collateral and to protect,
                  preserve, and realize upon the Posted Collateral. The
                  power-of-attorney granted herein to the Secured Party is
                  coupled with an interest and is irrevocable during the term of
                  this Agreement.

                           (iii) The following is added as a new paragraph 1
                  l(g):

                  (g) Pledgor shall deliver to the Secured Party an opinion of
         counsel in form and substance, satisfactory to the Secured Party but
         with customary exceptions and qualifications, to the effect that the
         Transfer of the Posted Collateral effects a valid perfected security
         interest, such opinion to be requested by the Secured Party in writing
         within one week of the first Transfer of Posted Collateral by the
         Pledgor and such opinion will be delivered in writing within thirty
         (30) Local Business Days of such request. If counsel is unable to
         render such an opinion, the parties agree that they will work in good
         faith to amend the Agreement and the Credit Support Annex as required
         in order to permit such an opinion to be rendered.

DEUTSCHE BANK AG                            MBIA, INC.
By: /s/A. Levenson                          By: /s/ Joseph Sevely
    -------------------------                   ---------------------------
Name: A. Levenson                           Name: Joseph Sevely
Title:                                      Title: Treasurer

By: /s/D. Nestler
    ------------------------
Name: D. Nestler
Title:

                                       38
<PAGE>   39
                                     ISDA(R)
              International Swaps and Derivatives Association, Inc.

                              CREDIT SUPPORT ANNEX
                             to the Schedule to the
                                MASTER AGREEMENT
                             dated as of May 2, 2000
                                     between

                         DEUTSCHE BANK AG and MBIA, INC.
                             ("Party A") ("Party B")

This Annex supplements, forms part of, and is subject to, the above-referenced
Agreement, is part of its Schedule and is a Credit Support Document under this
Agreement with respect to each party.

Accordingly, the parties agree as follows:

Paragraph 1. Interpretation

         (a) Definitions and Inconsistency. Capitalized terms not otherwise
defined herein or elsewhere in this Agreement have the meanings specified
pursuant to Paragraph 12, and all references in this Annex to Paragraphs are to
Paragraphs of this Annex. In the event of any inconsistency between this Annex
and the other provisions of this Schedule, this Annex will prevail, and in the
event of any inconsistency between Paragraph 13 and the other provisions of this
Annex, Paragraph 13 will prevail.

         (b) Secured Party and Pledgor. All references in this Annex to the
"Secured Party" will be to either party when acting in that capacity and all
corresponding references to the "Pledgor" will be to the other party when acting
in that capacity; provided, however, that if Other Posted Support is held by a
party to this Annex, all references herein to that party as the Secured Party
with respect to that Other Posted Support will be to that party as the
beneficiary thereof and will not subject that support or that party as the
beneficiary thereof to provisions of law generally relating to security
interests and secured parties.

Paragraph 2. Security Interest

Each party, as the Pledgor, hereby pledges to the other party, as the Secured
Party, as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party hereunder.
Upon the Transfer by the Secured Party to the Pledgor of Posted Collateral, the
security interest and lien granted hereunder on that Posted Collateral will be
released immediately and, to the extent possible, without any further action by
either party.

   Copyright (C) 1994 by International Swaps and Derivatives Association, Inc.
<PAGE>   40
Paragraph 3. Credit Support Obligations

         (a) Delivery Amount Subject to Paragraphs 4 and 5, upon a demand made
by the Secured Party on or promptly following a Valuation Date, if the Delivery
Amount for that Valuation Date equals or exceeds the Pledgor's Minimum Transfer
Amount, then the Pledgor will Transfer to the Secured Party Eligible Credit
Support having a Value as of the date of Transfer at least equal to the
applicable Delivery Amount (rounded pursuant to Paragraph 13). Unless otherwise
specified in Paragraph 13, the "Delivery Amount" applicable to the Pledgor for
any Valuation Date will equal the amount by which:

                  (i) the Credit Support Amount

exceeds

                  (ii) the Value as of that Valuation Date of all Posted Credit
         Support held by the Secured Party.

         (b) Return Amount. Subject to Paragraphs 4 and 5, upon a demand made by
the Pledgor on or promptly following a Valuation Date, if the Return Amount for
that Valuation Date equals or exceeds the Secured Party's Minimum Transfer
Amount, then the Secured Party will Transfer to the Pledgor Posted Credit
Support specified by the Pledgor in that demand having a Value as of the date of
Transfer as close as practicable to the applicable Return Amount (rounded
pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the
"Return Amount" applicable to the Secured Party for any Valuation Date will
equal the amount by which:

                  (i) the Value as of that Valuation Date of all Posted Credit
         Support held by the Secured Party

exceeds

                  (ii) the Credit Support Amount.

"Credit Support Amount" means, unless otherwise specified in Paragraph 13, for
any Valuation Date (i) the Secured Party's Exposure for that Valuation Date plus
(ii) the aggregate of all Independent Amounts applicable to the Pledgor, if any,
minus (iii) all Independent Amounts applicable to the Secured Party, if any,
minus (iv) the Pledgor's Threshold; provided, however, that the Credit Support
Amount will be deemed to be zero whenever the calculation of Credit Support
Amount yields a number less than zero.

Paragraph 4. Conditions Precedent, Transfer Timing, Calculations and
Substitutions

         (a) Conditions Precedent. Each Transfer obligation of the Pledgor under
Paragraphs 3 and 5 and of the Secured Party under Paragraphs 3, 4(d)(ii), 5 and
6(d) is subject to the conditions precedent that:

                  (i) no Event of Default, Potential Event of Default or
         Specified Condition has occurred and is continuing with respect to the
         other party; and

                  (ii) no Early Termination Date for which any unsatisfied
         payment obligations exist has occurred or been designated as the result
         of an Event of Default or Specified Condition with respect to the other
         party.

         (b) Transfer Timing. Subject to Paragraphs 4(a) and 5 and unless
otherwise specified, if a demand for the Transfer of Eligible Credit Support or
Posted Credit Support is made by the Notification Time, then the relevant
Transfer will be made not later than the close of business on the next Local
Business Day; if a demand is made after the Notification Time, then the relevant
Transfer will be made not later than the close of business on the second Local
Business Day thereafter.

         (c) Calculations. All calculations of Value and Exposure for purposes
of Paragraphs 3 and 6(d) will be made by the Valuation Agent as of the Valuation
Time. The Valuation Agent will notify each party (or the other party, if the
Valuation Agent is a party) of its calculations not later than the Notification
Time on the Local Business Day following the applicable Valuation Date (or in
the case of Paragraph 6(d), following the date of calculation).

                                       2                            ISDA(R) 1994
<PAGE>   41
         (d) Substitutions.

                  (i) Unless otherwise specified in Paragraph 13, upon notice to
         the Secured Party specifying the item of Posted Credit Support to be
         exchanged, the Pledgor may, on any Local Business Day, Transfer to the
         Secured Party substitute Eligible Credit Support (the "Substitute
         Credit Support"); and

                  (ii) subject to Paragraph 4(a), the Secured Party wilt
         Transfer to the Pledgor the items of Posted Credit Support specified by
         the Pledgor in its notice not later than the Local Business Day
         following the date on which the Secured Party receives the Substitute
         Credit Support, unless otherwise specified in Paragraph 13 (the
         "Substitution Date"); provided that the Secured Party will only be
         obligated to Transfer Posted Credit Support with a Value as of the date
         of Transfer of that Posted Credit Support equal to the Value as of that
         date of the Substitute Credit Support.

Paragraph 5. Dispute Resolution

If a party (a "Disputing Party") disputes (I) the Valuation Agent's calculation
of a Delivery Amount or a Return Amount or (II) the Value of any Transfer of
Eligible Credit Support or Posted Credit Support, then (1) the Disputing Party
will notify the other party and the Valuation Agent (if the Valuation Agent is
not the other party) not later than the close of business on the Local Business
Day following (X) the date that the demand is made under Paragraph 3 in the case
of (I) above or (Y) the date of Transfer in the case of (II) above, (2) subject
to Paragraph 4(a), the appropriate party will Transfer the undisputed amount to
the other party not later than the close of business on the Local Business Day'
following (X) the date that the demand is made under Paragraph 3 in the case of
(I) above or (Y) the date of Transfer in the case of (II) above, (3) the parties
will consult with each other in an attempt to resolve the dispute and (4) if
they fail to resolve the dispute by the Resolution Time, then:

                  (i) In the case of a dispute involving a Delivery Amount or
         Return Amount, unless otherwise specified in Paragraph 13, the
         Valuation Agent will recalculate the Exposure and the Value as of the
         Recalculation Date by:

                           (A) utilizing any calculations of Exposure for the
                  Transactions (or Swap Transactions) that the parties have
                  agreed are not in dispute;

                           (B) calculating the Exposure for the Transactions (or
                  Swap Transactions) in dispute by seeking four actual
                  quotations at mid-market from Reference Market-makers for
                  purposes of calculating Market Quotation, and taking the
                  arithmetic average of those obtained; provided that if four
                  quotations are not available for a particular Transaction (or
                  Swap Transaction), then fewer than four quotations may be used
                  for that Transaction (or Swap Transaction); and if no
                  quotations are available for a particular Transaction (or Swap
                  Transaction), then the Valuation Agent's original calculations
                  will be used for that Transaction (or Swap Transaction); and

                           (C) utilizing the procedures specified in Paragraph
                  13 for calculating the Value, if disputed, of Posted Credit
                  Support.

                  (ii) In the case of a dispute involving the Value of any
         Transfer of Eligible Credit Support or Posted Credit Support, the
         Valuation Agent will recalculate the Value as of the date of Transfer
         pursuant to Paragraph 13.

Following a recalculation pursuant to this Paragraph, the Valuation Agent will
notify each party (or the other party, if the Valuation Agent is a party) not
later than the Notification Time on the Local Business Day following the
Resolution Time. The appropriate party will, upon demand following that notice
by the Valuation Agent or a resolution pursuant to (3) above and subject to
Paragraphs 4(a) and 4(b), make the appropriate Transfer.

                                        3
<PAGE>   42
Paragraph 6. Holding and Using Posted Collateral

            (a) Care of Posted Collateral. Without limiting the Secured Party's
      rights under Paragraph 6(c), the Secured Party will exercise reasonable
      care to assure the safe custody of all Posted Collateral to the extent
      required by applicable law, and in any event the Secured Party will be
      deemed to have exercised reasonable care if it exercises at least the same
      degree of care as it would exercise with respect to its own property.
      Except as specified in the preceding sentence, the Secured Party will have
      no duty with respect to Posted Collateral, including, without limitation,
      any duty to collect any Distributions, or enforce or preserve any rights
      pertaining thereto.

            (b) Eligibility to Hold Posted Collateral; Custodians.

                  (i) General. Subject to the satisfaction of any conditions
            specified in Paragraph 13 for holding Posted Collateral, the Secured
            Party will be entitled to hold Posted Collateral or to appoint an
            agent (a "Custodian") to hold Posted Collateral for the Secured
            Party. Upon notice by the Secured Party to the Pledgor of the
            appointment of a Custodian, the Pledgor's obligations to make any
            Transfer will be discharged by making the Transfer to that
            Custodian. The holding of Posted Collateral by a Custodian will be
            deemed to be the holding of that Posted Collateral by the Secured
            Party for which the Custodian is acting.

                  (ii) Failure to Satisfy Conditions. If the Secured Party or
            its Custodian fails to satisfy any conditions for holding Posted
            Collateral, then upon a demand made by the Pledgor, the Secured
            Party will, not later than five Local Business Days after the
            demand, Transfer or cause its Custodian to Transfer all Posted
            Collateral held by it to a Custodian that satisfies those conditions
            or to the Secured Party if it satisfies those conditions.

                  (iii) Liability. The Secured Party will be liable for the acts
            or omissions of its Custodian to the same extent that the Secured
            Party would be liable hereunder for its own acts or omissions.

            (c) Use of Posted Collateral. Unless otherwise specified in
      Paragraph 13 and without limiting the rights and obligations of the
      parties under Paragraphs 3, 4(d)(ii), 5, 6(d) and 8, if the Secured Party
      is not a Defaulting Party or an Affected Party with respect to a Specified
      Condition and no Early Termination Date has occurred or been designated as
      the result of an Event of Default or Specified Condition with respect to
      the Secured Party, then the Secured Party will, notwithstanding Section
      9-207 of the New York Uniform Commercial Code, have the right to:

                  (i) sell, pledge, rehypothecate, assign, invest, use,
            commingle or otherwise dispose of, or otherwise use in its business
            any Posted Collateral it holds, free from any claim or right of any
            nature whatsoever of the Pledgor, including any equity or right of
            redemption by the Pledgor; and

                  (ii) register any Posted Collateral in the name of the Secured
            Party, its Custodian or a nominee for either.

For purposes of the obligation to Transfer Eligible Credit Support or Posted
Credit Support pursuant to Paragraphs 3 and 5 and any rights or remedies
authorized under this Agreement, the Secured Party will be deemed to continue to
hold all Posted Collateral and to receive Distributions made thereon, regardless
of whether the Secured Party has exercised any rights with respect to any Posted
Collateral pursuant to (i) or (ii) above.

            (d) Distributions and Interest Amount.

                  (i) Distributions. Subject to Paragraph 4(a), if the Secured
            Party receives or is deemed to receive Distributions on a Local
            Business Day, it will Transfer to the Pledgor not later than the
            following Local Business Day any Distributions it receives or is
            deemed to receive to the extent that a Delivery Amount would not be
            created or increased by that Transfer, as calculated by the
            Valuation Agent (and the date of calculation will be deemed to be a
            Valuation Date for this purpose).

                                        4                            ISDA(R)1994
<PAGE>   43
                  (ii) Interest Amount. Unless otherwise specified in Paragraph
            13 and subject to Paragraph 4(a), in lieu of any interest, dividends
            or other amounts paid or deemed to have been paid with respect to
            Posted Collateral in the form of Cash (all of which may be retained
            by the Secured Party), the Secured Party will Transfer to the
            Pledgor at the times specified in Paragraph 13 the Interest Amount
            to the extent that a Delivery Amount would not be created or
            increased by that Transfer, as calculated by the Valuation Agent
            (and the date of calculation will be deemed to be a Valuation Date
            for this purpose). The Interest Amount or portion thereof not
            Transferred pursuant to this Paragraph will constitute Posted
            Collateral in the form of Cash and will be subject to the security
            interest granted under Paragraph 2.

Paragraph 7. Events of Default

For purposes of Section 5(a)(iii)(1) of this Agreement, an Event of Default will
exist with respect to a party if:

                  (i) that party fails (or fails to cause its Custodian) to
            make, when due, any Transfer of Eligible Collateral, Posted
            Collateral or the Interest Amount, as applicable, required to be
            made by it and that failure continues for two Local Business Days
            after notice of that failure is given to that party;

                  (ii) that party fails to comply with any restriction or
            prohibition specified in this Annex with respect to any of the
            rights specified in Paragraph 6(c) and that failure continues for
            five Local Business Days after notice of that failure is given to
            that party; or

                  (iii) that party fails to comply with or perform any agreement
            or obligation other than those specified in Paragraphs 7(i) and
            7(ii) and that failure continues for 30 days after notice of that
            failure is given to that party.

Paragraph 8. Certain Rights and Remedies

            (a) Secured Party's Rights and Remedies. If at any time (1) an Event
      of Default or Specified Condition with respect to the Pledgor has occurred
      and is continuing or (2) an Early Termination Date has occurred or been
      designated as the result of an Event of Default or Specified Condition
      with respect to the Pledgor, then, unless the Pledgor has paid in full all
      of its Obligations that are then due, the Secured Party may exercise one
      or more of the following rights and remedies:

                  (i) all rights and remedies available to a secured party under
            applicable law with respect to Posted Collateral held by the Secured
            Party;

                  (ii) any other rights and remedies available to the Secured
            Party under the terms of Other Posted Support, if any;

                  (iii) the right to Set-off any amounts payable by the Pledgor
            with respect to any Obligations against any Posted Collateral or the
            Cash equivalent of any Posted Collateral held by the Secured Party
            (or any obligation of the Secured Party to Transfer that Posted
            Collateral); and

                  (iv) the right to liquidate any Posted Collateral held by the
            Secured Party through one or more public or private sales or other
            dispositions with such notice, if any, as may be required under
            applicable law, free from any claim or right of any nature
            whatsoever of the Pledgor, including any equity or right of
            redemption by the Pledgor (with the Secured Party having the right
            to purchase any or all of the Posted Collateral to be sold) and to
            apply the proceeds (or the Cash equivalent thereof) from the
            liquidation of the Posted Collateral to any amounts payable by the
            Pledgor with respect to any Obligations in that order as the Secured
            Party may elect.

Each party acknowledges and agrees that Posted Collateral in the form of
securities may decline speedily in value and is of a type customarily sold on a
recognized market, and, accordingly, the Pledgor is not entitled to prior notice
of any sale of that Posted Collateral by the Secured Party, except any notice
that is required under applicable law and cannot be waived.

                                        5                            ISDA(R)1994
<PAGE>   44
            (b) Pledgor's Rights and Remedies. If at any time an Early
      Termination Date has occurred or been designated as the result of an Event
      of Default or Specified Condition with respect to the Secured Party, then
      (except in the case of an Early Termination Date relating to less than all
      Transactions (or Swap Transactions) where the Secured Party has paid in
      full all of its obligations that are then due under Section 6(e) of this
      Agreement):

                  (i) the Pledgor may exercise all rights and remedies available
            to a pledgor under applicable law with respect to Posted Collateral
            held by the Secured Party;

                  (ii) the Pledgor may exercise any other rights and remedies
            available to the Pledgor under the terms of Other Posted Support, if
            any;

                  (iii) the Secured Party will be obligated immediately to
            Transfer all Posted Collateral and the Interest Amount to the
            Pledgor', and

                  (iv) to the extent that Posted Collateral or the Interest
            Amount is not so Transferred pursuant to (iii) above, the Pledgor
            may:

                        (A) Set-off any amounts payable by the Pledgor with
                  respect to any Obligations against any Posted Collateral or
                  the Cash equivalent of any Posted Collateral held by the
                  Secured Party (or any obligation of the Secured Party to
                  Transfer that Posted Collateral); and

                        (B) to the extent that the Pledgor does not Set-off
                  under (iv)(A) above, withhold payment of any remaining amounts
                  payable by the Pledgor with respect to any Obligations, up to
                  the Value of any remaining Posted Collateral held by the
                  Secured Party, until that Posted Collateral is Transferred to
                  the Pledgor.

            (c) Deficiencies and Excess Proceeds. The Secured Party will
      Transfer to the Pledgor any proceeds and Posted Credit Support remaining
      after liquidation, Set-off and/or application under Paragraphs 8(a) and
      8(b) after satisfaction in full of all amounts payable by the Pledgor with
      respect to any Obligations; the Pledgor in all events will remain liable
      for any amounts remaining unpaid after any liquidation, Set-off and/or
      application under Paragraphs 8(a) and 8(b).

            (d) Final Returns. When no amounts are or thereafter may become
      payable by the Pledgor with respect to any Obligations (except for any
      potential liability under Section 2(d) of this Agreement), the Secured
      Party will Transfer to the Pledgor all Posted Credit Support and the
      Interest Amount, if any.

Paragraph 9. Representations

Each party represents to the other party (which representations will be deemed
to be repeated as of each date on which it, as the Pledgor, Transfers Eligible
Collateral) that:

                  (i) it has the power to grant a security interest in and lien
            on any Eligible Collateral it Transfers as the Pledgor and has taken
            all necessary actions to authorize the granting of that security
            interest and lien;

                  (ii) it is the sole owner of or otherwise has the right to
            Transfer all Eligible Collateral it Transfers to the Secured Party
            hereunder, free and clear of any security interest, lien,
            encumbrance or other restrictions other than the security interest
            and lien granted under Paragraph 2;

                  (iii) upon the Transfer of any Eligible Collateral to the
            Secured Party under the terms of this Annex, the Secured Party will
            have a valid and perfected first priority security interest therein
            (assuming that any central clearing corporation or any third-party
            financial intermediary or other entity not within the control of the
            Pledgor involved in the Transfer of that Eligible Collateral gives
            the notices and takes the action required of it under applicable law
            for perfection of that interest); and

                  (iv) the performance by it of its obligations under this Annex
            will not result in the creation of any security interest, lien or
            other encumbrance on any Posted Collateral other than the security
            interest and lien granted under Paragraph 2.

                                        6                             ISDA@ 1994
<PAGE>   45
Paragraph 10. Expenses

            (a) General. Except as otherwise provided in Paragraphs 10(b) and
      10(c), each party will pay its own costs and expenses in connection with
      performing its obligations under this Annex and neither party will be
      liable for any costs and expenses incurred by the other party in
      connection herewith.

            (b) Posted Credit Support. The Pledgor will promptly pay when due
      all taxes, assessments or charges of any nature that are imposed with
      respect to Posted Credit Support held by the Secured Party upon becoming
      aware of the same, regardless of whether any portion of that Posted Credit
      Support is subsequently disposed of under Paragraph 6(c), except for those
      taxes, assessments and charges that result from the exercise of the
      Secured Party's rights under Paragraph 6(c).

            (c) Liquidation/Application of Posted Credit Support. All reasonable
      costs and expenses incurred by or on behalf of the Secured Party or the
      Pledgor in connection with the liquidation and/or application of any
      Posted Credit Support under Paragraph 8 will be payable, on demand and
      pursuant to the Expenses Section of this Agreement, by the Defaulting
      Party or, if there is no Defaulting Party, equally by the parties.

Paragraph 11. Miscellaneous

            (a) Default Interest. A Secured Party that fails to make, when due,
      any Transfer of Posted Collateral or the Interest Amount will be obligated
      to pay the Pledgor (to the extent permitted under applicable law) an
      amount equal to interest at the Default Rate multiplied by the Value of
      the items of property that were required to be Transferred, from (and
      including) the date that Posted Collateral or Interest Amount was required
      to be Transferred to (but excluding) the date of Transfer of that Posted
      Collateral or Interest Amount. This interest will be calculated on the
      basis of daily compounding and the actual number of days elapsed.

            (b) Further Assurances. Promptly following a demand made by a party,
      the other party will execute, deliver, file and record any financing
      statement, specific assignment or other document and take any other action
      that may be necessary or desirable and reasonably requested by that party
      to create, preserve, perfect or validate any security interest or lien
      granted under Paragraph 2, to enable that party to exercise or enforce its
      rights under this Annex with respect to Posted Credit Support or an
      Interest Amount or to effect or document a release of a security interest
      on Posted Collateral or an Interest Amount.

            (c) Further Protection. The Pledgor will promptly give notice to the
      Secured Party of, and defend against, any suit, action, proceeding or lien
      that involves Posted Credit Support Transferred by the Pledgor or that
      could adversely affect the security interest and lien granted by it under
      Paragraph 2, unless that suit, action, proceeding or lien results from the
      exercise of the Secured Party's rights under Paragraph 6(c).

            (d) Good Faith and Commercially Reasonable Manner. Performance of
      all obligations under this Annex, including, but not limited to, all
      calculations, valuations and determinations made by either party, will be
      made in good faith and in a commercially reasonable manner.

            (e) Demands and Notices. All demands and notices made by a party
      under this Annex will be made as specified in the Notices Section of this
      Agreement, except as otherwise provided in Paragraph 13.

            (f) Specifications of Certain Matters. Anything referred to in this
      Annex as being specified in Paragraph 13 also may be specified in one or
      more Confirmations or other documents and this Annex will be construed
      accordingly.

                                        7                            ISDA(R)1994
<PAGE>   46
Paragraph 12. Definitions

As used in this Annex:

      "Cash" means the lawful currency of the United States of America.

      "Credit Support Amount" has the meaning specified in Paragraph 3.

      "Custodian" has the meaning specified in Paragraphs 6(b)(i) and 13.

      "Delivery Amount" has the meaning specified in Paragraph 3(a).

      "Disputing Party" has the meaning specified in Paragraph 5.

      "Distributions" means with respect to Posted Collateral other than Cash,
all principal, interest and other payments and distributions of cash or other
property with respect thereto, regardless of whether the Secured Party has
disposed of that Posted Collateral under Paragraph 6(c). Distributions will not
include any item of property acquired by the Secured Party upon any disposition
or liquidation of Posted Collateral or, with respect to any Posted Collateral in
the form of Cash, any distributions on that collateral, unless otherwise
specified herein.

      "Eligible Collateral" means, with respect to a party, the item, if any,
specified as such for that party in Paragraph 13.

      "Eligible Credit Support" means Eligible Collateral and Other Eligible
Support.

      "Exposure" means for any Valuation Date or other date for which Exposure
is calculated and subject to Paragraph 5 in the case of a dispute, the amount,
if any, that would be payable to a party that is the Secured Party by the other
party (expressed as a positive number) or by a party that is the Secured Party
to the other party (expressed as a negative number) pursuant to Section
6(e)(ii)(2)(A) of this Agreement as if all Transactions (or Swap Transactions)
were being terminated as of the relevant Valuation Time; provided that Market
Quotation will be determined by the Valuation Agent using its estimates at
mid-market of the amounts that would be paid for Replacement Transactions (as
that term is defined in the definition of "Market Quotation").

      "Independent Amount" means, with respect to a party, the amount specified
as such for that party in Paragraph 13; if no amount is specified, zero.

      "Interest Amount" means, with respect to an Interest Period, the aggregate
sum of the amounts of interest calculated for each day in that Interest Period
on the principal amount of Posted Collateral in the form of Cash held by the
Secured Party on that day, determined by the Secured Party for each such day as
follows:

            (x) the amount of that Cash on that day; multiplied by

            (y) the Interest Rate in effect for that day; divided by

            (z) 360.

      "Interest Period" means the period from (and including) the last Local
Business Day on which an Interest Amount was Transferred (or, if no Interest
Amount has yet been Transferred, the Local Business Day on which Posted
Collateral in the form of Cash was Transferred to or received by the Secured
Party) to (but excluding), the Local Business Day on which the current Interest
Amount is to be Transferred.

      "Interest Rate" means the rate specified in Paragraph 13.

      "Local Business Day", unless otherwise specified in Paragraph 13, has the
meaning specified in the Definitions Section of this Agreement, except that
references to a payment in clause (b) thereof will be deemed to include a
Transfer under this Annex.

                                        8                            ISDA(R)1994
<PAGE>   47
      "Minimum Transfer Amount" means, with respect to a party, the amount
specified as such for that party in Paragraph 13; if no amount is specified,
zero.

      "Notification Time" has the meaning specified in Paragraph 13.

      "Obligations" means, with respect to a party, all present and future
obligations of that party under this Agreement and any additional obligations
specified for that party in Paragraph 13.

      "Other Eligible Support" means, with respect to a party, the items, if
any, specified as such for that party in Paragraph 13.

      "Other Posted Support" means all Other Eligible Support Transferred to the
Secured Party that remains in effect for the benefit of that Secured Party.

      "Pledgor" means either party, when that party (i) receives a demand for or
is required to Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has
Transferred Eligible Credit Support under Paragraph 3(a).

      "Posted Collateral" means all Eligible Collateral, other property,
Distributions, and all proceeds thereof that have been Transferred to or
received by the Secured Party under this Annex and not Transferred to the
Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or 6(d)(i) or released by the
Secured Party under Paragraph 8. Any Interest Amount or portion thereof not
Transferred pursuant to Paragraph 6(d)(ii) will constitute Posted Collateral in
the form of Cash.

      "Posted Credit Support" means Posted Collateral and Other Posted Support.

      "Recalculation Date" means the Valuation Date that gives rise to the
dispute under Paragraph 5; provided, however, that if a subsequent Valuation
Date occurs under Paragraph 3 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 3.

      "Resolution Time" has the meaning specified in Paragraph 13.

      "Return Amount" has the meaning specified in Paragraph 3(b).

      "Secured Party" means either party, when that party (i) makes a demand for
or is entitled to receive Eligible Credit Support under Paragraph 3(a) or (ii)
holds or is deemed to hold Posted Credit Support.

      "Specified Condition" means, with respect to a party, any event specified
as such for that party in Paragraph 13.

      "Substitute Credit Support" has the meaning specified in Paragraph
4(d)(i).

      "Substitution Date" has the meaning specified in Paragraph 4(d)(ii).

      "Threshold" means, with respect to a party, the amount specified as such
for that party in Paragraph 13; if no amount is specified, zero.

      "Transfer" means, with respect to any Eligible Credit Support, Posted
Credit Support or Interest Amount, and in accordance with the instructions of
the Secured Party, Pledgor or Custodian, as applicable:

                  (i) in the case of Cash, payment or delivery by wire transfer
            into one or more bank accounts specified by the recipient;

                  (ii) in the case of certificated securities that cannot be
            paid or delivered by book-entry, payment or delivery in appropriate
            physical form to the recipient or its account accompanied by any
            duly executed instruments of transfer, assignments in blank,
            transfer tax stamps and any other documents necessary to constitute
            a legally valid transfer to the recipient;

                  (iii) in the case of securities that can be paid or delivered
            by book-entry, the giving of written instructions to the relevant
            depository institution or other entity specified by the recipient,
            together with a written copy thereof to the recipient, sufficient if
            complied with to result in a legally effective transfer of the
            relevant interest to the recipient; and

                  (iv) in the case of Other Eligible Support or Other Posted
            Support, as specified in Paragraph 13.

                                        9                            ISDA(R)1994
<PAGE>   48
      "Valuation Agent" has the meaning specified in Paragraph 13.

      "Valuation Date" means each date specified in or otherwise determined
pursuant to Paragraph 13.

      "Valuation Percentage" means, for any item of Eligible Collateral, the
percentage specified in Paragraph 13.

      "Valuation Time" has the meaning specified in Paragraph 13.

      "Value" means for any Valuation Date or other date for which Value is
calculated and subject to Paragraph 5 in the case of a dispute, with respect to:

                  (i) Eligible Collateral or Posted Collateral that is:

                        (A) Cash, the amount thereof, and

                        (B) a security, the bid price obtained by the Valuation
                  Agent multiplied by the applicable Valuation Percentage, if
                  any;

                  (ii) Posted Collateral that consists of items that are not
            specified as Eligible Collateral, zero; and

                  (iii) Other Eligible Support and Other Posted Support, as
            specified in Paragraph 13.

                                       10                            ISDA(R)1994
<PAGE>   49
Deutsche Bank
Aktiengesellschaft

                         Revised as of January 11, 2001

Date:             November 15, 2000

To:               MBIA Inc.

Attention:        Joe Buonadonna
Facsimile no.:    914-765-3410

Our Reference:    603260 - MJ

Re:               Cross Currency Swap Transaction - This Confirmation supersedes
                  and replaces all prior communication between the parties
                  hereto with respect to the Transaction described below

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between Deutsche Bank AG ("DBAG") and MBIA Inc.
("Counterparty") on the Trade Date specified below (the "Transaction"). This
letter agreement constitutes a "Confirmation" as referred to in the Agreement
specified below.

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

      1. This Confirmation supplements, forms part of, and is subject to, the
ISDA Master Agreement dated as of May 2, 2000, (as the same may be amended or
supplemented from time to time, the "Agreement"), between DBAG and Counterparty.
All provisions contained in the Agreement shall govern this Confirmation except
as modified below.

      2. The terms of the particular Transaction to which this Confirmation
relates are as follows:

Trade Date:                         November 13, 2000

Effective Date:                     December 15, 2000

Termination Date:                   June 15, 2010

Fixed Amounts I:

Fixed Rate Payer:                   DBAG
<PAGE>   50
Fixed Rate Payer
Currency Amount:                    CHF 175,000,000.00

Fixed Rate Payer
Payment Dates:                      The 15th day of June of each year,
                                    commencing June 15, 2001, through and
                                    including the Termination Date.

Fixed Amounts:                      With respect to the period from and
                                    including the Effective Date to but
                                    excluding June 15, 2001*, CHF 3,941,437.50;
                                    With respect to the period from and
                                    including June 15, 2001* to but excluding
                                    June 15, 2009*, CHF; 7,882,875.00.

                                    With respect to the period from and
                                    including June 15, 2009 to but excluding the
                                    Termination Date, CHF 7,900,375.00.

                                    *subject to adjustment in accordance with
                                    the Following Business Day Convention, with
                                    No Adjustment to Period End Dates.

Business Days:                      Zurich

Fixed Amounts II:

Fixed Rate Payer:                   Counterparty

Fixed Rate Payer
Currency Amount:                    USD 99,262,621.00

Fixed Rate Payer
Payment Dates:                      The 15th day of June and December of each
                                    year, commencing June 15, 2001, through and
                                    including the Termination Date, subject to
                                    adjustment in accordance with the Following
                                    Business Day Convention, with No Adjustment
                                    to Period End Dates.

Initial Fixed Rate Payer
Calculation Period:                 From and including December 15, 2000, to but
                                    excluding June 15, 2001.

                                        2
<PAGE>   51
Fixed Rate:                         7.56%

       Fixed Rate
       Day Count Fraction:          30/360

       Business Days:               New York and London

Initial Exchange:

Initial Exchange Date:              The Effective Date

DBAG Initial Exchange Amount:       USD 99,262,621.00

Counterparty Initial
Exchange Amount:                    CHF 175,000,000.00

Final Exchange:

Final Exchange Date:                The Termination Date

DBAG Final Exchange Amount:         CHF 175,000,000.00

Counterparty Final Exchange Amount: USD 99,262,621.00

Business Days for Final Exchange:   Zurich, London, and New York

3.    HEDGE IDENTIFICATION

On this day, November 13, 2000, this swap entered into on November 13, 2000 with
Deutsche Banc Alex Brown has been identified by MBIA Inc. under IRC 1221(b)(2)
and Treasury Regulation 1.1221-2 as a "hedging transaction" with respect to the
following debt issuance of MBIA, Inc.:

Description of Debt:                CHF 175mm 4.50% Notes

Date of Debt Issuance:              December 15, 200

Maturity Date:                      June 15, 2010

Principal Amount:                   CHF 175,000,000
                                    USD 99,262,621

Annual Coupon:                      4.50%

                                     3
<PAGE>   52
4.    Account Details

Account Details for DBAG:

Deutsche Bank AG New York Branch (Direct)
CHIPS UID 053335 ABA #: 026003780
A/c: 100440170004 / Ref: Interest Rate Swaps

Account Details for Counterparty:

Chase Manhattan Bank
Brooklyn, NY
ABA # 021000021
For credit to: MBIA Inc. Custody DDA
A/C #  323-8-97274
Ref: Debt issue proceeds

5.    Offices:

The Office of DBAG for this Transaction is New York.

6.    Calculation Agent:            DBAG

7.    Representations

Each party will be deemed to represent to the other party on the date on which
it enters into this Transaction that (absent a written agreement between the
parties that expressly imposes affirmative obligations to the contrary for this
Transaction):

            (i) Non-Reliance. It is acting for its own account, and it has made
      its own independent decisions to enter into this Transaction and as to
      whether this Transaction is appropriate or proper for it based upon its
      own judgment and upon advice from such advisers as it has deemed
      necessary. It is not relying on any communication (written or oral) of the
      other party as investment advice or as a recommendation to enter into this
      Transaction; it being understood that information and explanations related
      to the terms and conditions of this Transaction shall not be considered
      investment advice or a recommendation to enter into this Transaction. No
      communication (written or oral) received from the other party shall be
      deemed to be an assurance or guarantee as to the expected results of this
      Transaction.

            (ii) Assessment and Understanding. It is capable of assessing the
      merits of and understanding (on its own behalf or through independent
      professional advice), and understands and accepts, the terms, conditions
      and risks of this Transaction. It is also capable of assuming, and
      assumes, the risks of this Transaction.

            (iii) Status of Parties. The other party is not acting as a
      fiduciary for, or an adviser to it in respect of this Transaction.

                                     4
<PAGE>   53
8.    Please confirm that the foregoing correctly sets forth the terms of our
agreement by having an authorized officer sign this Confirmation and return it
by facsimile to:

Attention Swap Documentation
Telephone: (212) 250-5360
Facsimile: (212) 250-7263

This message will be the only form of Confirmation dispatched by us. If you wish
to exchange hard copy forms of this Confirmation, please contact us.

Yours sincerely,

Deutsche Bank AG

By: /s/ Katherine Andrews
Name: Katherine Andrews
Authorized Signatory

By: /s/ Eric Lip
Name: Eric Lip
Authorized Signatory

Confirmed as of the date first written above:
MBIA Inc.

By: /s/ Joseph Sevely
Name: Joseph Sevely
Title: Treasurer

                                    5
<PAGE>   54
Deutsche Bank
Aktiengesellschaft

Date:             May 5, 2000

To:               MBIA Inc.

Attention:        Mr. Joe Buonadonna
Facsimile no.:    914-765-3410

Our Reference:    527323 - EC
Re:               Interest Rate Swap Transaction

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between Deutsche Bank AG ("DBAG") and MBIA Inc.
("Counterparty") on the Trade Date specified below (the "Transaction""). This
letter agreement constitutes a "Confirmation" as referred to in the Agreement
specified below.

The definitions and provisions contained in the 1991 ISDA Definitions (as
supplemented by the 1998 Supplement)(the "Definitions") as published by the
International Swaps and Derivatives Association, Inc. are incorporated by
reference herein. In the event of any inconsistency between the Definitions and
this Confirmation, this Confirmation will govern.

For the purpose of this Confirmation, references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.    This Confirmation supplements, forms part of, and is subject to, the ISDA
Master Agreement dated as of May 2, 2000, (as the same may be amended or
supplemented from time to time, the "Agreement"), between DBAG and Counterparty.
All provisions contained in the Agreement shall govern this Confirmation except
as expressly modified below.

2.    The terms of the particular Transaction to which this Confirmation relates
are as follows:

Notional Amount:                    USD 100,000,000.00

Trade Date:                         May 3, 2000

Effective Date:                     May 5, 2000

Termination Date:                   October 1, 2022, (the "Scheduled Termination
                                    Date"), subject to the provisions of Section
                                    3 and 4 of this Confirmation.

Fixed Amounts:

Fixed Rate Payer:                   DBAG
<PAGE>   55
Fixed Rate Payer
Payment Dates:                      The 1st day of April and October of each
                                    year, commencing October 1, 2000, through
                                    and including the Termination Date, subject
                                    to adjustment in accordance with the
                                    Modified Following Business Day Convention,
                                    with No Adjustment to Period End Dates.

Fixed Rate:                         8.20%

Fixed Raft Day
Count Fraction:                     30/360

Floating Amounts:

Floating Rate Payer:                Counterparty

Floating Rate Payer
Payment Dates:                      The 1st day of April and October of each
                                    year, commencing October 2, 2000, through
                                    and including the Termination Date, subject
                                    to adjustment in accordance with the
                                    Modified Following Business Day Convention.

Floating Rate Option:               USD-LIBOR-BBA

Designated Maturity:                Six months

Spread:                             Minus 0.015%

Floating Rate Day
Count Fraction:                     Actual/360

Floating Rate for initial
Calculation Period:                 6.71%(inclusive of Spread)

Reset Dates:                        The first Business Day in each Calculation
                                    Period or Compounding Period, if Compounding
                                    is applicable.

Compounding:                        Inapplicable

Business Days:                      London and New York

                                    2
<PAGE>   56
3.    (a) Early Termination:

Optional Early Termination:         Applicable

Option Style:                       American

Seller:                             Counterparty

Buyer:                              DBAG

Seller Business Day:                New York

      (b) Procedure for Exercise:

Commencement Daft:                  October 1, 2002

Exercise Period:                    All days which are Seller Business Days
                                    from, and including, the Commencement Date,
                                    to, but excluding, the Expiration Date
                                    between 9:00 a.m., New York time, to, and
                                    including, the Expiration Time

Expiration Date:                    Thirty (30) calendar days preceding 0ctober
                                    1, 2022, provided that if such date that
                                    would otherwise be the Expiration Date is
                                    not a Seller Business Day, such date shall
                                    be adjusted in accordance with the Preceding
                                    Business Day Convention and Business Days
                                    for such purpose shall be a day that is a
                                    Seller Business Day

Expiration Time:                    11:00 a.m., Now York time

Optional Termination Date:          Thirty calendar days following the Exercise
                                    Date, subject to adjustment in accordance
                                    with the Modified Following Business Day
                                    Convention

Multiple Exercise:                  Inapplicable

      (c) Settlement Terms:

Cash Settlement:                    Inapplicable

                                   3
<PAGE>   57
            Special Provisions:     In the event that the Exercising Party
                                    exercises its Option pursuant to the
                                    foregoing terms and conditions, the amounts
                                    payable by the parties on the Optional
                                    Termination Date shall be calculated as if
                                    the Optional Termination Dam were the final
                                    Payment Date for this Transaction. No
                                    further rights or obligations shall exist
                                    between the parties with respect to this
                                    Transaction upon payment of any such amounts
                                    due in accordance with this provision

            Additional Payment:     On Optional Termination Date, subject to
                                    adjustment in accordance with the Modified
                                    Following Business Day Convention, Buyer
                                    shall pay to Seller a Termination Fee, (a
                                    "Termination Fee") determined in accordance
                                    with the schedule set forth below.

If the Optional Termination Date is Designated within the period from and
Including "A" to but excluding "B"

<TABLE>
<CAPTION>
   A*                      B*            Termination Fee
<S>                  <C>                 <C>
October 1, 2001      October 1, 2002     3.999% x Fixed Rate Payer Calculation Amount
October 1, 2002      October 1, 2003     3.589% x Fixed Rate Payer Calculation Amount
October 1, 2003      October 1, 2004     3.190% x Fixed Rate Payer Calculation Amount
October 1, 2004      October 1, 2005     2.791% x Fixed Rate Payer Calculation Amount
October 1, 2005      October 1, 2006     2.393% x Fixed Rate Payer Calculation Amount
October 1, 2006      October 1, 2007     1.994% x Fixed Raw Payer Calculation Amount
October 1, 2007      October 1, 2008     1.595% x Fixed Rate Payer Calculation Amount
October 1, 2008      October 1, 2009     1.196% x Fixed Rate Payer Calculation Amount
October 1, 2009      October 1, 2010     0.7986 x Fixed Rate Payer Calculation Amount
October 1, 2010      October 1. 2011     0.399% x Fixed Rate Payer Calculation Amount
</TABLE>

4.    (a) Early Termination:

Optional Early Termination:         Applicable, provided that no Event of
                                    Default or Potential Event of Default with
                                    respect to the Exercising Party shall have
                                    occurred and be continuing

Option Style:                       Bermuda

Seller Business Day:                New York

      (b) Procedure for Exercise

           Exercise Period:         Each Bermuda Option Exercise Date and the
                                    Expiration Date from, and including 9:00
                                    am., New York time, to, and including the
                                    Expiration Time

                                    4
<PAGE>   58
Bermuda Option Exercise Dates:      Five Seller Business Days preceding each
                                    1st day of October of each year, commencing
                                    October 1, 2010 subject to adjustment in
                                    accordance with the Modified Following
                                    Business Day Convention

            Expiration Date:        Five Seller Business Days preceding October
                                    1, 2021, subject to adjustment in according
                                    with the Modified Following Business Day
                                    Convention

            Expiration Time:        11:00 a.m., New York time

            Multiple Exercise:      Inapplicable

            (c) Settlement Terms:

Cash Settlement:                    Applicable

Cash Settlement Valuation Time:     11:00 am., New York time

Cash Settlement Valuation Date:     Two Valuation Business Days preceding the
                                    Cash Settlement Payment Daft

Valuation Business Days:            New York and London

Cash Settlement Payment Deft:       Five Seller Business Days following the
                                    Exercise Date

Business Day Convention for
Cash Settlement Payment Date:       Modified Following

Cash Settlement Method:             Cash Price

Settlement Rate:                    Inapplicable

Quotation Rate:                     Mid

5.              Account Details:

Account Details for DBAG:

Deutsche Bank AG New York Branch (Direct)
CHIPS UID 053335 ABA #: 026003780

Account Details for Counterparty:

Chase Manhattan Bank Brooklyn, NY 11245
ABA # 021 000021
For Credit: MBIA Inc. Operations
A/C # 9102 723153

                                     5
<PAGE>   59
6.              Offices:

The Office of DBAG for this Transaction is Now York.

7.    Calculation Agent:              DBAG

8.    Representations

Each party will be deemed to represent to the other party on the date on which
it enters into this Transaction that (absent a written agreement between the
parties that expressly imposes affirmative obligations to the contrary for this
Transaction):

            (i) Non-Reliance. It is acting for its own account, and it has made
      its own independent decisions to enter into this Transaction and as to
      whether this Transaction is appropriate or proper for it based upon its
      own judgment and upon advice from such advisers as it has deemed
      necessary. It is not relying on any communication (written or oral) of the
      other party as investment advice or as a recommendation to enter into this
      Transaction; it being understood that information and explanations related
      to the terms and conditions of this Transaction shall not be considered
      investment advice or & recommendation to enter into this Transaction. No
      communication (written or oral) received from the other party shall be
      deemed to be an assurance or guarantee as to the expected results of this
      Transaction.

            (ii) Assessment and Understanding. It is capable of assessing the
      merits of and understanding (on its own behalf or through independent
      professional advice), and understands and accepts, the terms, conditions
      and risks of this Transaction. It is also capable of assuming. and
      assumes, the risks of this Transaction.

            (iii) Status of Parties The other party is not acting as a fiduciary
      for, or an adviser to it in respect of this Transaction.

9.    Please confirm that the foregoing correctly sets forth the terms of
our agreement by having an authorized officer sign this Confirmation and return
it by facsimile to:

Attention Edward Childs - Swap Documentation
Telephone: (212) 250-5360
Facsimile: (212) 669-1592

                                        6
<PAGE>   60
This message will be the only form of Confirmation dispatched by us. If you wish
to exchange hard copy forms of this Confirmation, please contact us.

Yours sincerely,

Deutsche Bank AG

By: /s/ Maria Costagliola
Name:
Authorized Signatory

By: /s/ Katherine Andrews
Name: Katherine Andrews
Authorized Signatory

Confirmed as of the date first written above:

MBIA Inc.

By: /s/ Joseph Sevely
Name: Joseph Sevely
Title: Treasurer

                                   7

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