Document:

Exhibit 10.1.1

                            Agreed Form Cover Sheet

                              dated 6 March 2006,

attaching:

1. the form of 1992 ISDA Master Agreement (Multicurrency - Cross Border);

2. the Agreed Form Schedule thereto (Sidley Austin document number: 964905);

3. the form of 1995 ISDA Credit and Support Annex (Bilateral Form - Transfer)
   (the "CSA pre-printed form") forming part of the Schedule; and

4. the Agreed Form Paragraph 11 to the CSA pre-printed form (Sidley Austin
   document number: 966856),

between

(1) ABN AMRO BANK N.V., LONDON BRANCH; and

(2) GRANITE MASTER ISSUER plc, and

signed for the purposes of identification by:

/s/ Illegible Signature  /S/ Illegible Signature
-------------------------------------------------

ABN AMRO Bank N.V., London Branch

on 6th March 2006; and

/s/ Sidley Austin
-------------------------------------------------

SIDLEY AUSTIN

on 6 March 2006.

<PAGE>

(Multicurrency - Cross Border)

                                     ISDA,
                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

         dated as of the Effective Date specified in the Confirmation

        ABN AMRO BANK N.V., LONDON BRANCH and GRANITE MASTER ISSUER plc
               ---------------------------   ---------------------------

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>

(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 on the 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 (11) a Change in Tax
               Law.

                                      2                           ISDA(R) 1992
<PAGE>

     (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>

(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 1 1, 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) 1992
<PAGE>

organised, managed and controlled, or considered to have its 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, that 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>

     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>

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 lndemnifiable 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 any "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>

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)(l), (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)(l) 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>

     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 specifLing 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 Market 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>

          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(e)(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 (11) 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>

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 judgment 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 the 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 tbe purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

                                      11                           ISDA(R) 1992
<PAGE>

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 he entered into as soon as practicable
     and may he 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>

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 any time 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 l(3) 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>

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 in 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 fiom 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 hnding the relevant amount plus 1% per annum.

                                      14                           ISDA(R) 1992
<PAGE>

"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 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)(l) 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 11. 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>

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 quotations having the highest and 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 Transaction 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 meanings specified in the Schedule.

                                      16                          ISDA(R) 1992
<PAGE>

"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.

"Specialed 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) any combination of 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 ofany
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:OO 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>

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.

ABN AMRO BANK N.V., LONDON BRANCH                 GRANITE MASTER ISSUER plc
----------------------------------        --------------------------------
     (Name of Party)                           (Name of Party)

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

                                      18                          ISDA(R) 1992
<PAGE>

                                            ABN AMRO/Granite Master Issuer plc
                                    Cross Currency/Interest Rate ISDA Schedule
                                                Agreed Form Version: 06.03.06.

                             Agreed Form Schedule

(Multicurrency - Cross Border)

                                   SCHEDULE

                                    to the

                                   1992 ISDA

                               MASTER AGREEMENT

         dated as of the Effective Date specified in the Confirmation,

between

(1) ABN AMRO BANK N.V., LONDON BRANCH ("Party A"); and

(2) GRANITE MASTER ISSUER plc ("Party B").

Part 1.  Termination Provisions.

(a) "Specified Entity" means in relation to Party A for the purpose of:-

     Section 5(a)(v), none

     Section 5(a)(vi), none

     Section 5(a)(vii), none

     Section 5(b)(iv), none

     and in relation to Party B for the purpose of:-

     Section 5(a)(v), none

     Section 5(a)(vi), none

     Section 5(a)(vii), none

     Section 5(b)(iv), none

(b) "Specified Transaction" will have the meaning specified in Section 14.

                                      19
<PAGE>

(c)  The "Cross Default" provisions of Section 5(a)(vi) will apply to Party A
     and will not apply to Party B.

     "Specified Indebtedness" will have the meaning specified in Section 14 of
     this Agreement.

     "Threshold Amount" means, with respect to Party A, an amount equal to two
     per cent. (2%) of its total shareholders' equity as specified from time
     to time in the most recent annual report of ABN AMRO Holding N.V.
     containing consolidated financial statements, prepared in accordance with
     accounting principles that are generally accepted for institutions of its
     type in the jurisdiction of its organization and certified by independent
     public accountants, or its equivalent in any other currency.

(d)  The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will apply
     to Party A and will not apply to Party B.

(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)  Market Quotation will apply.

     (ii) The Second Method will apply.

(g)  "Termination Currency" means Sterling.

(h)  Additional Termination Event will apply. The events which constitute
     Additional Termination Events are set forth in Part 5(f), Part 5(k)(iii),
     Part 5(l)(iv) and Part 5(m)(v) of this Agreement.

                                      20
<PAGE>

Part 2. Tax Representations

(a)  Payer Representations. For the purpose of Section 3(e) of this Agreement,
     Party A and Party B will each make the following representation:

     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)(ii) or 6(e) of
     this Agreement) to be made by it to the other party under this Agreement.
     In making this representation, it 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 Representations. For the purposes of Section 3(f) of the Agreement,
     neither Party A nor Party B make any representation.

                                      21
<PAGE>

Part 3. Agreement to Deliver Documents

     For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each
     party agrees to deliver the following documents, as applicable:-

(a) Tax forms, documents or certificates to be delivered are:-

         Party required to      Form/Document/         Date by which to be
         deliver document       Certificate            delivered
         None                   None                   None

<TABLE>
<CAPTION>

(b) Other documents to be delivered are:-

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

         <S>                    <C>                            <C>                      <C>
         Party A and            Appropriate evidence of its    On signing of this       Yes
         Party B                signatory's authority          Agreement

         Party B                Certified copy of              On signing of this       Yes
                                board resolution               Agreement

         Party A                Legal opinion of counsel (in   On signing of this       No
                                form and substance             Agreement
                                satisfactory to Part B)

         Party B                Legal opinion of counsel (in   On signing of this       No
                                form and substance             Agreement
                                satisfactory to Part A)

         Party A                An executed original of the    On signing of this       No
                                Credit Support Document        Agreement
                                listed in Part 4(f) below

</TABLE>

                                      22
<PAGE>

Part 4. Miscellaneous

(a)  Addresses for Notices. For the purpose of Section 12(a) of this
     Agreement:-

     Address for notices or communications to Party A:-

     Address:            250 Bishopsgate
                         London
                         EC2M 4AA

     Attention:          Jennie Gilbertson/Peter Wightwick/
                         Paul James Wood/Miriam Corcoran

     Facsimile No:       +44 (0)20 7678 3666

     Address for notices or communications to Party B:-

     Address:            Granite Master Issuer plc
                         Fifth Floor
                         100 Wood Street
                         London
                         EC2V 7EX

     With a copy to:     Northern Rock plc
                         Northern Rock House
                         Gosforth
                         Newcastle upon Tyne
                         NE3 4PL

     Attention:          Andy McClean

     Facsimile No.:      +44 (0)191 279 4929

     With a copy to the Note Trustee:-

     Address:            The Bank of New York
                         One Canada Square
                         48th Floor
                         London
                         E14 5AL

     Attention:          Corporate Trust (Global Structured Finance)

     Facsimile No.:      +44 (0)20 7964 6399

(b)  Process Agent. For the purpose of Section 13(c) of this Agreement:-

     Party A appoints as its Process Agent: None.

                                      23
<PAGE>

     Party B appoints as its Process Agent: None.

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

(d)  Multibranch Party. For the purpose of Section 10(c) of this Agreement:-

     Party A is not a Multibranch Party and will act through its London
     branch.

     Party B is not a Multibranch Party.

(e)  Calculation Agent. The Calculation Agent shall be as specified in the
     Confirmation.

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

     In respect of Party A: the 1995 Credit Support Annex (Bilateral Form -
     Transfer) between Party A and Party B dated as of the Effective Date
     specified in the Confirmation (the "Credit Support Annex").

     In respect of Party B: none.

(g)  Credit Support Provider.

     Credit Support Provider means, in relation to Party A, none.

     Credit Support Provider means, in relation to Party B, none.

(h)  Governing Law. This Agreement will be governed by and construed in
     accordance with English law.

(i)  Netting of Payments. Sub-paragraph (ii) of Section 2(c) of this Agreement
     will apply to Transactions entered into under this Agreement unless
     otherwise specified in a Confirmation.

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

                                      24
<PAGE>

Part 5. Other Provisions

(a)  Definitions and Interpretation

     Capitalised terms used in this Agreement shall, except where the context
     otherwise requires and save where otherwise defined in this Agreement,
     bear the meanings given to them in the Programme Master Definitions
     Schedule and the Issuer Master Definitions Schedule (each as described in
     the Confirmation). Such Issuer Master Definitions Schedule shall prevail
     to the extent that it conflicts with such Programme Master Definitions
     Schedule.

     For the purposes of this Agreement:

     "Issuer Notes" has the meaning given to such term in the Confirmation.

(b)  No Set-Off

     (i)  All payments under this Agreement shall be made without set-off or
          counterclaim, except as expressly provided for in Section 6. For the
          avoidance of doubt, Section 2(c) shall not be affected by this
          provision.

     (ii) Section 6(e) shall be amended by the deletion of the following
          sentence: "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."

(c)  Security Interest

     Notwithstanding Section 7, Party A hereby agrees and consents to the
     assignment by way of security by Party B of its interests under this
     Agreement (without prejudice to, and after giving effect to, any
     contractual netting provision contained in this Agreement) to the Issuer
     Security Trustee (or any successor thereto) pursuant to and in accordance
     with the terms and conditions of the Issuer Deed of Charge and
     acknowledges notice of such assignment.

(d)  Disapplication of certain Events of Default

     Section 5(a)(ii), Section 5(a)(iii), Section 5(a)(iv), Section 5(a)(v),
     Section 5(a)(vii)(2),(5),(6),(7) and (9) and Section 5(a)(viii) will not
     apply in respect of Party B.

     Section 5(a)(vii)(8) will not apply to Party B to the extent that it
     applies to Section 5(a)(vii)(2),(5),(6) and (7).

     Sections 5(a)(vii)(3) and 5(a)(vii)(4) are deleted in their entirety and
     replaced with the following:

     "(3) makes a general assignment, arrangement or composition with or for
     the benefit of its creditors, provided that where such general
     assignment, arrangement and/or

                                      25
<PAGE>

     composition is contemplated by the Transaction Documents, this Section
     5(a)(vii)(3) shall not apply to Party B; (4) institutes or has instituted
     against it a proceeding seeking a judgment of insolvency or bankruptcy or
     a petition is presented for its winding-up or liquidation or the making
     of an administration order against it and such proceeding or petition
     results in a judgment of insolvency or bankruptcy or the making of an
     order for its winding-up, administration or liquidation".

(e)  Disapplication of certain Termination Events

     The "Tax Event" and "Tax Event Upon Merger" provisions of Sections
     5(b)(ii) and 5(b)(iii) will not apply to Party A or to Party B.

(f)  Additional Termination Events

     (A)  Party B Additional Termination Events:

     The following shall each constitute an Additional Termination Event with
     respect to Party B:

     (i)  Note Enforcement Notice. The Note Trustee serves an Issuer
          Enforcement Notice on Party B in accordance with Condition 9 (Events
          of Default) of the Issuer Notes.

     (ii) Early Redemption. The Issuer Notes are redeemed in full in
          accordance with Condition 5(E) or (F) at any time prior to their
          Final Maturity Date.

     In the case of (i) and (ii) above, Party B shall be the sole Affected
     Party[, except that: in the case of (i), if the event described therein
     occurs on or after the Termination Date (as defined in the Confirmation),
     there shall be deemed to be two Affected Parties for the purposes only of
     Section 6(b)(iv)].(1)

     (B)  Party A Additional Termination Event:

     The following shall constitute an Additional Termination Event with
     respect to Party A:

     Without prejudice to any other remedies available to Party B under this
     Agreement or otherwise, it shall be an Additional Termination Event under
     this Agreement if the Additional Tax Representation in Part 5(n)(iii)
     proves to have been incorrect or misleading in any material respect with
     respect to one or more Transactions when made or repeated or deemed to
     have been made or repeated. The sole Affected Party shall be Party A.

---------------------
(1)  The words in square brackets will be incorporated into the Confirmation
     only where the Class of the Issuer Notes referred to therein are rated on
     their issuance "AAA" (or equivalent) by S&P, "AAA" (or equivalent) by
     Fitch and "Aaa" (or equivalent) by Moody's.

                                      26
<PAGE>

(g)  Northern Rock plc as Party B's Agent

     Party B hereby declares that pursuant to the Issuer Cash Management
     Agreement it has appointed Northern Rock plc to act as its agent for the
     purpose, inter alia, of the operation of this Agreement and dealing with
     payments hereunder. Accordingly, unless and until written notice is
     received by Party A from the Note Trustee that such appointment has been
     terminated, Party A shall be entitled to treat all communications and
     acts relating to this Agreement received from or carried out by Northern
     Rock plc as agent for Party B under the Issuer Cash Management Agreement
     as being those of Party B, and Party B hereby agrees to ratify and
     confirm the same.

(h)  Security, Enforcement and Limited Recourse

     (i)  Party A confirms to Party B that it is, or will be, by the date
          hereof, bound by the terms of the Issuer Deed of Charge and, in
          particular, confirms that: (i) save as otherwise expressly set out
          in the Issuer Deed of Charge, no sum shall be payable by or on
          behalf of Party B to it except in accordance with the Issuer
          Priority of Payments as set out in the Issuer Deed of Charge (as the
          same may be amended, restated, supplemented and/or otherwise
          modified from time to time); and (ii) it will not take any steps for
          the winding up, dissolution or reorganization or for the appointment
          of a receiver, administrator, administrative receiver, trustee,
          liquidator, sequestrator or similar officer of Party B or of any or
          all of its revenues and assets nor participate in any ex parte
          proceedings nor seek to enforce any judgment against Party B except
          as provided in the Issuer Deed of Charge.

     (ii) In relation to all sums due and payable by Party B to Party A, Party
          A agrees that it shall have recourse only to sums available to Party
          B for the purpose of making payments to Party A in accordance with
          the relevant Issuer Priority of Payments and the Issuer Deed of
          Charge.

    (iii) If, on any payment date under a Transaction, an amount is payable
          by Party B to Party A and Party B does not pay such amount in full
          on such date (after the application of Section 2(c) to such
          Transaction) because of the limitation contained in Part 5(h)(i)
          above, then: (A) payment by Party B of the shortfall (and the
          corresponding payment obligation of Party A with respect to such
          shortfall (being the full amount Party A would otherwise owe on such
          date less the actual amount payable by Party A determined in
          accordance with Part 5(h)(iii)(C) below)) will not then fall due,
          [but will instead be deferred until the first Payment Date (as
          defined in the Confirmation) thereafter on which sufficient funds
          are available (subject to the limitation in Part 5(h)(i) above)](2),
          (B) failure by Party B to make the full payment under such
          Transaction (after the application of Section

---------------------
(2)  The words in square brackets will not be incorporated into the
     Confirmation where the Class of the Issuer Notes referred to therein are
     rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
     equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      27
<PAGE>

          2(c) to such Transaction) shall not constitute an Event of Default
          for the purpose of Section 5(a)(i), and (C) the obligation of Party
          A to make payment to Party B, in respect of the same Transaction, on
          such date, will be reduced so that Party A will be obligated to pay
          the Equivalent Percentage of the amount it would otherwise owe under
          that Transaction. "Equivalent Percentage" means the percentage
          obtained by dividing the amount paid by Party B by the amount it
          would have paid on the relevant date absent such limitation
          multiplied by one hundred provided that, in respect of any
          Transaction where the Confirmation provides that Party B makes
          payments on a monthly basis and Party A makes payments on a
          quarterly basis, the Equivalent Percentage shall be adjusted by the
          Calculation Agent so as to reflect all of the amounts paid by Party
          B during the relevant quarterly period applicable to Party A's
          quarterly payment.

     (iv) If an Early Termination Date results from an Event of Default or a
          Termination Event, any amount payable (the payment of which was
          deferred or not paid in the circumstances described under Part
          5(h)(iii) above by Party A or by Party B, as the case may be, under
          this Agreement) will be deemed to be Unpaid Amounts owing to Party B
          or, as the case may be, owing to Party A on the Early Termination
          Date.

     (v)  Following the calculation thereof, and in any event no later than
          two Local Business Days prior to any relevant Payment Date (as
          defined in the Confirmation), Party B agrees to notify Party A of
          the amount of any shortfall[, the payment of which by Party B is
          deferred in accordance with Part 5(h)(iii) above)](3).

(i)  Scope of Agreement

     It is hereby understood and agreed that the provisions of this Agreement
     shall only apply to the Transaction entered into between Party A and
     Party B on the Trade Date specified in the only Confirmation (other than
     the Credit Support Annex) that supplements, forms part of, and is subject
     to this Agreement (and, for the avoidance of doubt, all references in
     this Agreement to "Confirmation" shall be to such Confirmation or, as the
     context requires, the Credit Support Annex) and that no other Transaction
     may be entered into pursuant hereto except in accordance with sub-Parts
     5(k)(i)(A), 5(k)(ii)(B), 5(l)(i)(D), 5(l)(iii), 5(m)(i)(A), 5(m)(ii)(A)
     or 5(m)(iv), or where the Rating Agencies have confirmed in writing that
     the then current ratings of the Issuer Notes would not be adversely
     affected by such other Transaction.

---------------------
(3)  The words in square brackets will not be incorporated into the
     Confirmation where the Class of the Issuer Notes referred to therein are
     rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
     equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      28
<PAGE>

(j)  Authorised Person

     For the purposes of Section 3 of this Agreement, Party A represents to
     Party B (which representation will be deemed to be repeated by Party A on
     each date on which a Transaction is entered into and until all
     outstanding payment and delivery obligations of Party A, from time to
     time, under this Agreement have been satisfied in full) that it is an
     authorised person for the purposes of the Financial Services and Markets
     Act 2000 (or any successor to it).

(k)  Ratings Downgrade of Party A - Standard & Poor's Rating Services, a
     division of The McGraw-Hill Companies Inc. ("S&P")

     (i)  Initial S&P Note Downgrade Event

     In the event that an Initial S&P Note Downgrade Event occurs, then Party
     A shall, within 30 days of the occurrence of such Initial S&P Note
     Downgrade Event, at its own cost, either:-

     (A)  provide collateral in the form of cash and/or securities or both in
          support of its obligations under this Agreement in accordance with
          the provisions of the Credit Support Annex; or

     (B)  transfer all of its rights and obligations with respect to this
          Agreement to a replacement third party whose short-term, unsecured
          and unsubordinated debt obligations are rated at least as high as
          "A-1+" (or its equivalent) by S&P or such other rating as is
          commensurate with the rating assigned to the Issuer Notes by S&P
          from time to time; or

     (C)  procure another person to become co-obligor or guarantor in respect
          of the obligations of Party A under this Agreement whose short-term,
          unsecured and unsubordinated debt obligations are rated at least as
          high as "A-1+" (or its equivalent) by S&P or such other rating as is
          commensurate with the rating assigned to the Issuer Notes by S&P
          from time to time; or

     (D)  take such other action as Party A may agree with S&P as will result
          in the rating of the Issuer Notes then outstanding following the
          taking of such action being rated no lower than the rating of the
          Issuer Notes immediately prior to such downgrade.

     If any of sub-paragraphs (k)(i)(B), (k)(i)(C) or (k)(i)(D) above are
     satisfied at any time, all collateral (or the equivalent thereof, as
     appropriate) transferred by Party A pursuant to sub-paragraph (k)(i)(A)
     above will be transferred back to Party A, and Party A will not be
     required to transfer any additional collateral in respect of such
     particular Initial S&P Note Downgrade Event.

     (ii) Subsequent S&P Note Downgrade Event

                                      29
<PAGE>

          (A)  Party A shall, within 10 days of the occurrence of a Subsequent
               S&P Note Downgrade Event, at its own cost and expense, use its
               best endeavours to take the action set out in sub-paragraph
               (k)(i)(B) above; and

          (B)  if, at the time a Subsequent S&P Note Downgrade Event occurs,
               Party A has provided collateral in accordance with the
               provisions of the Credit Support Annex pursuant to
               sub-paragraph (k)(i)(A) above following an Initial S&P Note
               Downgrade Event, it will continue to provide collateral
               notwithstanding the occurrence of a Subsequent S&P Note
               Downgrade Event until such time as the action in sub-paragraph
               (k)(ii)(A) above has been taken.

     If the action set out in sub-paragraph (k)(ii)(A) above is taken at any
     time, all collateral (or the equivalent thereof, as appropriate)
     transferred by Party A pursuant to sub-paragraph (k)(i)(A) above will be
     transferred back to Party A, and Party A will not be required to transfer
     any additional collateral in respect of such Subsequent S&P Note
     Downgrade Event.

     (iii) Additional Termination Events

          If Party A does not take any of the measures described in
          sub-paragraphs (k)(i) or (k)(ii) above such failure shall not be or
          give rise to an Event of Default but shall constitute an Additional
          Termination Event with respect to Party A and shall be deemed to
          have occurred on the thirtieth day following the Initial S&P Note
          Downgrade Event or Subsequent S&P Note Downgrade Event, as
          applicable, with Party A as the sole Affected Party.

          However, in the event that Party B were to designate an Early
          Termination Date and there would be a payment due to Party A, Party
          B may only designate such an Early Termination Date in respect of an
          Additional Termination Event under this sub-paragraph (k)(iii) if
          Party B has found a replacement counterparty willing to enter into a
          new transaction with Party B on terms that reflect as closely as
          reasonably possible (as the Note Trustee, on behalf of Party B may,
          in its absolute discretion, determine) the economic, legal and
          credit terms of the Terminated Transaction with Party A.

     (iv) S&P Definitions

          For the purposes of this Part 5(k):

          an "Initial S&P Note Downgrade Event" will occur where:

          (a)  the short-term, unsecured and unsubordinated debt obligations
               of Party A (or its successor), or any guarantor of Party A's
               obligations under this Agreement (or its successor), cease to
               be rated at least as high as "A-1+" (or its equivalent) by S&P,
               and

                                      30
<PAGE>

          (b)  as a result of such cessation, the then current rating of the
               Issuer Notes may, in the reasonable opinion of S&P, be
               downgraded or placed under review for possible downgrade; and

          a "Subsequent Note Downgrade Event" will occur where:

          (a)  the long-term, unsecured and unsubordinated debt obligations of
               Party A (or its successor), or any guarantor of Party A's
               obligations under this Agreement (or its successor), cease to
               be rated at least as high as "BBB-" (or its equivalent) by S&P,
               and

          (b)  as a result of such cessation, the then current rating of the
               Issuer Notes may, in the reasonable opinion of S&P, be
               downgraded or placed under review for possible downgrade.

(l)  Ratings Downgrade of Party A - Moody's Investors Service Limited
     ("Moody's")

     (i)  Initial Moody's Note Downgrade Event

          Within 30 days of the occurrence of an Initial Moody's Note
          Downgrade Event, Party A shall, on a reasonable efforts basis and at
          its own cost, attempt to:

          (A)  transfer all of its rights and obligations with respect to this
               Agreement to either (x) a replacement third party with the
               Required Ratings (as defined below) domiciled in the same legal
               jurisdiction as Party A or Party B or (y) a replacement third
               party which, as agreed with Moody's, will not adversely affect
               the ratings of the Issuer Notes; or

          (B)  procure another person to become co-obligor or guarantor in
               respect of the obligations of Party A under this Agreement.
               Such co-obligor or guarantor may be either (x) a person with
               the Required Ratings domiciled in the same legal jurisdiction
               as Party A or Party B, or (y) a person, who as agreed with
               Moody's, will not adversely affect the ratings of the Issuer
               Notes; or

          (C)  take such other action as Moody's shall confirm to Party A will
               remedy an Initial Moody's Note Downgrade Event; or

          (D)  provide collateral in the form of cash or securities or both,
               in support of its obligations under this Agreement in
               accordance with the provisions of the Credit Support Annex.

          If any of sub-paragraphs (l)(i)(A), (l)(i)(B) or (l)(i)(C) above are
          satisfied at any time, all collateral (or the equivalent thereof, as
          appropriate) transferred by Party A pursuant to sub-paragraph
          (l)(i)(D) above will be transferred back to Party A and Party A will
          not be required to transfer any additional collateral as a
          consequence of such particular Initial Moody's Note Downgrade Event.

                                      31
<PAGE>

     (ii) Subsequent Moody's Note Downgrade Event

          Party A shall, within 30 days of the occurrence of a Subsequent
          Moody's Note Downgrade Event, on a reasonable efforts basis and at
          its own cost, attempt to:

          (A)  transfer all of its rights and obligations with respect to this
               Agreement to either (x) a replacement third party with the
               Required Ratings domiciled in the same legal jurisdiction as
               Party A or Party B, or (y) a replacement third party which, as
               agreed with Moody's, will not adversely affect the ratings of
               the Issuer Notes; or

          (B)  procure another person to become co-obligor or guarantor in
               respect of the obligations of Party A under this Agreement.
               Such co-obligor or guarantor may be either (x) a person with
               the Required Ratings domiciled in the same legal jurisdiction
               as Party A or Party B, or (y) a person, who as agreed with
               Moody's, will not adversely affect the ratings of the Issuer
               Notes; or

          (C)  take such other action as Moody's shall confirm to Party A will
               remedy a Subsequent Moody's Note Downgrade Event.

     (iii) Subsequent Moody's Note Downgrade Event - Collateral Requirements

          Pending compliance with any of sub-paragraphs (l)(ii)(A), (l)(ii)(B)
          or (l)(ii)(C) above, Party A will at its own cost and within 10 days
          of such Subsequent Moody's Note Downgrade Event or 30 days of the
          occurrence of an Initial Moody's Note Downgrade Event, whichever is
          the earlier, provide collateral in the form of cash or securities or
          both, in support of its obligations under this Agreement in
          accordance with the provisions of the Credit Support Annex; provided
          that, if at the time when a Subsequent Moody's Note Downgrade Event
          occurs, Party A has provided collateral pursuant to the Credit
          Support Annex pursuant to sub-paragraph (l)(i)(D) above, it will
          continue to provide collateral notwithstanding the occurrence of a
          Subsequent Moody's Note Downgrade Event.

          If any of sub-paragraphs (l)(ii)(A), (l)(ii)(B) or (l)(ii)(C) above
          are satisfied at any time, all collateral (or the equivalent
          thereof, as appropriate) transferred by Party A pursuant to this
          sub-paragraph (l)(iii) will be transferred back to Party A and Party
          A will not be required to transfer any additional collateral
          (subject always to any collateral which may be required pursuant to
          sub-paragraph (l)(i)(D) above and unless a further Subsequent
          Moody's Note Downgrade Event occurs).

     (iv) Additional Termination Events and Event of Default

          If Party A does not take the measures described in sub-paragraph
          (l)(i) above such failure shall not be or give rise to an Event of
          Default but shall constitute an Additional Termination Event with
          respect to Party A and shall be deemed to have occurred on the
          thirtieth day following an Initial Moody's Note Downgrade Event with
          Party A as the sole Affected Party.

                                      32
<PAGE>

          If Party A does not take the measures described in sub-paragraph
          (l)(iii) above such failure shall give rise to an Event of Default
          with respect to Party A and shall be deemed to have occurred on the
          tenth day following such Subsequent Moody's Note Downgrade Event
          with Party A as the sole Defaulting Party. Further, it shall
          constitute an Additional Termination Event with respect to Party A
          if, even after satisfying the requirements of sub-paragraph
          (l)(iii), Party A has failed, having applied reasonable efforts, to
          comply with any of sub-paragraphs (l)(ii)(A), (l)(ii)(B) or
          (l)(ii)(C) and such Additional Termination Event shall be deemed to
          have occurred on the thirtieth day following such Subsequent Moody's
          Note Downgrade Event with Party A as the sole Affected Party.

          However, in the event that Party B were to designate an Early
          Termination Date and there would be a payment due to Party A, Party
          B may only designate such an Early Termination Date in respect of an
          Additional Termination Event under this sub-paragraph (l)(iv) if
          Party B has found a replacement counterparty willing to enter into a
          new transaction with Party B on terms that reflect as closely as
          reasonably possible (as the Note Trustee, on behalf of Party B, may,
          in its absolute discretion, determine) the economic, legal and
          credit terms of the Terminated Transactions with Party A.

     (v)  Mark-to-Market valuation

          In relation to paragraphs (l)(i)(D) and (iii) above, Party A will,
          upon receipt of reasonable notice from Moody's demonstrate to
          Moody's the calculation by it of the mark-to-market value of the
          outstanding Transactions. In relation to paragraph (iii) above,
          Party A will, on receipt of reasonable notice from Moody's (which,
          for the avoidance of doubt, will be no less than 30 days) arrange a
          third party valuation of the mark-to-market value of the outstanding
          Transactions.

     (vi) Moody's Definitions

          For the purposes of this Part 5(l):

          an "Initial Moody's Note Downgrade Event" will occur where:

          (a)  the long-term, unsecured and unsubordinated debt obligations of
               Party A (or its successor) and, if relevant, any guarantor of
               Party A's obligations under this Agreement (or its successor),
               cease to be rated at least as high as "A1" (or its equivalent)
               by Moody's, or

          (b)  the short-term, unsecured and unsubordinated debt obligations
               of Party A (or its successor) and, if relevant, any guarantor
               of Party A's obligations under this Agreement (or its
               successor), cease to be rated at least as high as "P-1" (or its
               equivalent) by Moody's;

          a "Subsequent Moody's Note Downgrade Event" will occur where:

                                      33
<PAGE>

          (a)  the long-term, unsecured and unsubordinated debt obligations of
               Party A (or its successor) and, if relevant, any guarantor of
               Party A's obligations under this Agreement (or its successor),
               cease to be rated at least as high as "A3" (or its equivalent)
               by Moody's, or

          (b)  the short-term, unsecured and unsubordinated debt obligations
               of Party A (or its successor) and, if relevant, any guarantor
               of Party A's obligations under this Agreement (or its
               successor), cease to be rated at least as high as "P-2" (or its
               equivalent) by Moody's; and

          "Required Ratings" means, in respect of a person, its short-term,
          unsecured and unsubordinated debt obligations are rated at least as
          high as "P-1" and its long-term, unsecured and unsubordinated debt
          obligations are rated at least as high as "A1", or such other
          ratings as may be agreed with Moody's from time to time.

(m)  Ratings Downgrade of Party A - Fitch Ratings Ltd ("Fitch")

     (i)  Initial Fitch Note Downgrade Event

          Party A will, on a reasonable efforts basis, within 30 days of the
          occurrence of an Initial Fitch Note Downgrade Event, at its own
          cost, either:-

          (A)  provide collateral in the form of cash or securities or both,
               in support of its obligations under this Agreement, in
               accordance with the provisions of the Credit Support Annex; or

          (B)  transfer all of its rights and obligations with respect to this
               Agreement to a replacement third party whose long-term,
               unsecured and unsubordinated debt ratings are rated at least as
               high as "A+" (or its equivalent) by Fitch, and whose
               short-term, unsecured and unsubordinated debt ratings are rated
               at least as high as "F1" (or its equivalent) by Fitch or such
               other rating as is commensurate with the rating assigned to the
               Issuer Notes by Fitch from time to time; or

          (C)  procure another person to become co-obligor or guarantor in
               respect of the obligations of Party A under this Agreement
               whose long-term, unsecured and unsubordinated debt ratings are
               rated at least as high as "A+" (or its equivalent) by Fitch,
               and whose short-term, unsecured and unsubordinated debt ratings
               are rated at least as high as "F1" (or its equivalent) by Fitch
               or such other rating as is commensurate with the rating
               assigned to the Issuer Notes by Fitch from time to time; or

          (D)  take such other action as Party A may agree with Fitch as will
               result in the rating of the Issuer Notes then outstanding being
               maintained, or obtain confirmation from Fitch that there is no
               adverse effect on the rating of the Issuer Notes as a result of
               that Initial Fitch Downgrade Event so that none of the courses
               of action outlined at (m)(i)(A), (m)(i)(B) or (m)(i)(C) above
               need be pursued in respect of such Initial Fitch Downgrade
               Event.

                                      34
<PAGE>

               If any of sub-paragraphs (m)(i)(B), (m)(i)(C) or (m)(i)(D) are
               satisfied at any time all collateral (or the equivalent
               thereof, as appropriate) transferred by Party A pursuant to
               sub-paragraph (m)(i)(A) will be transferred back to Party A and
               Party A will not be required to transfer any additional
               collateral in consequence of the particular Initial Fitch Note
               Downgrade Event.

          (ii) First Subsequent Fitch Note Downgrade Event

               Party A will,

               (A)  at its own cost, within 30 days of the occurrence of a
                    First Subsequent Fitch Note Downgrade Event provide
                    collateral in the form of cash or securities or both, in
                    support of its obligations under this Agreement in
                    accordance with the provisions of the Credit Support
                    Annex; provided that, if at the time when a First
                    Subsequent Fitch Note Downgrade Event Party A has provided
                    collateral pursuant to the Credit Support Annex pursuant
                    to sub-paragraph (m)(i)(A) above it will continue to
                    provide collateral notwithstanding the occurrence of a
                    First Subsequent Fitch Note Downgrade Event; provided
                    further that, in either case, the mark-to-market
                    calculations and the correct and timely provision of
                    collateral thereunder are verified by an independent third
                    party within five Local Business Days of the date on which
                    collateral is provided pursuant to this sub-paragraph
                    (l)(ii)(A) and thereafter, on a periodic basis on every
                    fifth Local Business Day whilst collateral is being
                    provided pursuant to this sub-paragraph (l)(ii)(A) (with
                    the costs of such independent verification being borne by
                    Party A); or

               on a reasonable efforts basis, within 30 days of the occurrence
               of a First Subsequent Fitch Note Downgrade Event, at its own
               cost, either:

               (B)  transfer all of its rights and obligations with respect to
                    this Agreement to a replacement third party whose
                    long-term, unsecured and unsubordinated debt ratings are
                    rated at least as high as "A+" (or its equivalent) by
                    Fitch, and whose short-term, unsecured and unsubordinated
                    debt ratings are rated at least as high as "F1" (or its
                    equivalent) by Fitch or such other rating as is
                    commensurate with the rating assigned to the Issuer Notes
                    by Fitch from time to time; or

               (C)  procure another person to become co-obligor or guarantor
                    in respect of the obligations of Party A under this
                    Agreement whose long-term, unsecured and unsubordinated
                    debt ratings are rated at least as high as "A+" (or its
                    equivalent) by Fitch, and whose short-term, unsecured and
                    unsubordinated debt ratings are rated at least as high as
                    "F1" (or its equivalent) by Fitch or such other rating as
                    is commensurate with the rating assigned to the Issuer
                    Notes by Fitch from time to time; or

                                      35
<PAGE>

               (D)  take such other action as Party A may agree with Fitch as
                    will result in the rating of the Issuer Notes then
                    outstanding being maintained, or obtain confirmation from
                    Fitch that there is no adverse effect on the rating of the
                    Issuer Notes as a result of that First Subsequent Fitch
                    Downgrade Event so that none of the courses of action
                    outlined at (m)(ii)(A), (m)(ii)(B) or (m)(ii)(C) above
                    need be pursued in respect of such First Subsequent Fitch
                    Downgrade Event.

               If any of sub-paragraphs (m)(ii)(B), (m)(ii)(C) or (m)(ii)(D)
               above are satisfied at any time, all collateral (or the
               equivalent thereof, as appropriate) transferred by Party A
               pursuant to sub-paragraph (m)(ii)(A) above will be transferred
               back to Party A and Party A will not be required to transfer
               any additional collateral as a consequence of the particular
               First Subsequent Fitch Note Downgrade Event.

         (iii) Second Subsequent Fitch Note Downgrade Event

               Party A will, on a reasonable efforts basis, within 30 days of
               the occurrence of a Second Subsequent Fitch Note Downgrade
               Event, at its own cost, either:

               (A)  transfer all of its rights and obligations with respect to
                    this Agreement to a replacement third party whose
                    long-term, unsecured and unsubordinated debt ratings are
                    rated at least as high as "A+" (or its equivalent) by
                    Fitch, and whose short-term, unsecured and unsubordinated
                    debt ratings are rated at least as high as "F1" (or its
                    equivalent) by Fitch or such other rating as is
                    commensurate with the rating assigned to the Issuer Notes
                    by Fitch from time to time; or

               (B)  procure another person to become co-obligor or guarantor
                    in respect of the obligations of Party A under this
                    Agreement whose long-term, unsecured and unsubordinated
                    debt ratings are rated at least as high as "A+" (or its
                    equivalent) by Fitch, and whose short-term, unsecured and
                    unsubordinated debt ratings are rated at least as high as
                    "F1" (or its equivalent) by Fitch or such other rating as
                    is commensurate with the rating assigned to the Issuer
                    Notes by Fitch from time to time; or

               (C)  take such other action as Party A may agree with Fitch as
                    will result in the rating of the Issuer Notes then
                    outstanding being maintained, or obtain confirmation from
                    Fitch that there is no adverse effect on the rating of the
                    Issuer Notes as a result of that Second Subsequent Fitch
                    Downgrade Event so that none of the courses of action
                    outlined at (m)(iii)(A) or (m)(iii)(B) above need be
                    pursued in respect of such Second Subsequent Fitch
                    Downgrade Event.

          (iv) Second Subsequent Fitch Note Downgrade Event - Collateral
               Requirements

                                      36
<PAGE>

               Pending compliance with any of sub-paragraphs (m)(iii)(A),
               (m)(iii)(B) or (m)(iii)(C) above, Party A will provide, at its
               own cost, within 10 days of such Second Subsequent Fitch Note
               Downgrade Event or 30 days of the occurrence of First
               Subsequent Fitch Note Downgrade Event, whichever is the
               earlier, collateral in the form of cash or securities or both,
               in support of its obligations under this Agreement in
               accordance with the provisions of the Credit Support Annex;
               provided that, if at the time when an Initial Fitch Note
               Downgrade Event or a First Subsequent Fitch Note Downgrade
               Event, as the case may be, occurs Party A has provided
               collateral pursuant to the Credit Support Annex pursuant to
               sub-paragraphs (m)(i)(A) or (m)(ii)(A) above, it will continue
               to provide collateral notwithstanding the occurrence of a
               Second Subsequent Fitch Note Downgrade Event; provided further
               that in either case, the mark-to-market calculations and the
               correct and timely provision of collateral thereunder are
               verified by an independent third party (with the costs of such
               independent verification being borne by Party A).

               If any of sub-paragraphs (m)(iii)(A), (m)(iii)(B) or
               (m)(iii)(C) above are satisfied at any time, all collateral (or
               the equivalent thereof, as appropriate) transferred by Party A
               pursuant to this sub-paragraph (m)(iv) will be transferred back
               to Party A and Party A will not be required to transfer any
               additional collateral as a consequence of the particular Second
               Subsequent Fitch Note Downgrade Event.

          (v)  Additional Termination Events

               If Party A does not take any of the measures described in
               sub-paragraphs (m)(i), (m)(ii) or (m)(iii) above such failure
               shall not be or give rise to an Event of Default but shall
               constitute an Additional Termination Event with respect to
               Party A and shall be deemed to have occurred on the thirtieth
               day following such Initial Fitch Note Downgrade Event, First
               Subsequent Fitch Note Downgrade Event or Second Subsequent
               Fitch Note Downgrade Event, as the case may be, with Party A as
               the sole Affected Party.

               However, in the event that Party B were to designate an Early
               Termination Date and there would be a payment due to Party A,
               Party B may only designate such an Early Termination Date in
               respect of an Additional Termination Event under this
               sub-paragraph (m)(v) if Party B has found a replacement
               counterparty willing to enter a new transaction with Party B on
               terms that reflect as closely as reasonably possible (as the
               Note Trustee, on behalf of Party B, may, in its absolute
               discretion, determine) the economic, legal and credit terms of
               the Terminated Transactions with Party A.

          (vi) Fitch Definitions

               For the purposes of this Part 5(m):

               an "Initial Fitch Note Downgrade Event" will occur where, the
               long-term, unsecured and unsubordinated debt obligations of
               Party A (or its successor) or, if

                                      37
<PAGE>

               relevant, any guarantor of Party A's obligations under this
               Agreement (or its successor) cease to be rated at least as high
               as "A+" (or its equivalent) by Fitch, and the short-term,
               unsecured and unsubordinated debt obligations of Party A (or
               its successor) or any guarantor of Party A's obligations under
               this Agreement (or its successor), cease to be rated at least
               as high as "F1" (or its equivalent) by Fitch;

               a "First Subsequent Fitch Note Downgrade Event" will occur
               where, the long-term, unsecured and unsubordinated debt
               obligations of Party A (or its successor) or, if relevant, any
               guarantor of Party A's obligations under this Agreement (or its
               successor), cease to be rated at least as high as "BBB+" (or
               its equivalent) by Fitch, and the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor)
               or any guarantor of Party A's obligations under this Agreement
               (or its successor), cease to be rated at least as high as "F2"
               (or its equivalent) by Fitch; and

               a "Second Subsequent Fitch Note Downgrade Event" will occur
               where, the long-term, unsecured and unsubordinated debt
               obligations of Party A (or its successor) or, if relevant, any
               guarantor of Party A's obligations under this Agreement (or its
               successor), cease to be rated at least as high as "BBB-" (or
               its equivalent) by Fitch, and the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor)
               or any guarantor of Party A's obligations under this Agreement
               (or its successor), cease to be rated at least as high as "F3"
               (or its equivalent) by Fitch.

     (n)  Additional Section 3 and Tax Deductibility Representations

          (i)  Section 3 is amended by the addition at the end thereof of the
               following additional representation:-

               "(g) No Agency. It is entering into this Agreement and each
               Transaction as principal and not as agent of any person."

          (ii) Party A represents to Party B (which representation will be
               deemed to be repeated by Party A on each date on which a
               Transaction is entered into) that its obligations under this
               Agreement rank pari passu with all of its other unsecured,
               unsubordinated obligations except those obligations preferred
               by operation of law.

         (iii) The following representation (the "Additional Tax
               Representation") will apply to Party A and will not apply to
               Party B and will be deemed to be repeated by Party A at all
               times until the termination of this Agreement. In relation to
               each Transaction, either:

               (A)  it is resident in the United Kingdom for United Kingdom
                    tax purposes, or

               (B)  the conditions of Paragraph 31(6) or Paragraph 31(7) of
                    Schedule 26 of the Finance Act 2002 (in each case as
                    amended or re-enacted from time to time) are satisfied
                    with respect to the relevant Transaction.

                                      38
<PAGE>

     (o)  Recording of Conversations

          Each party: (i) consents to the recording of telephone conversations
          between the trading, marketing and other relevant personnel of the
          parties in connection with this Agreement or any potential
          Transaction, (ii) agrees to obtain any necessary consent of, and
          give any necessary notice of such recording to, its relevant
          personnel, and (iii) agrees, to the extent permitted by applicable
          law, that recordings may be submitted in evidence in any
          Proceedings.

     (p)  Relationship between the parties

          The Agreement is amended by the insertion after Section 14 of an
          additional Section 15, reading in its entirety as follows:

          "15. Relationship between the parties

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

          (i)  Non Reliance. It is acting for its own account, and it has made
               its own decisions to enter into that Transaction and as to
               whether that Transaction is appropriate or proper for it based
               upon its own judgment and 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
               investment advice or a recommendation to enter into that
               Transaction. It has not received from the other party any
               assurance or guarantee as to the expected results of that
               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 that Transaction. It is also
               capable of assuming, and assumes, the financial and other risks
               of that Transaction.

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

     (q)  Tax

          The Agreement is amended by deleting Section 2(d) in its entirety
          and replacing it with the following:

          "(d) Deduction or Withholding for Tax

          (i) Requirement to Withhold

                                      39
<PAGE>

          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 (including, for the avoidance of doubt, if
          such deduction or withholding is required in order for the payer to
          obtain relief from Tax) by any applicable law, as modified by the
          practice of any relevant governmental revenue authority, then in
          effect. If a party ("X") is so required to deduct or withhold, then
          that party (the "Deducting Party"):-

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

          (B)  will 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 Gross Up Amount (as defined
               below) paid by the Deducting Party 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;

          (C)  will 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

          (D)  if X is Party A, X will promptly pay in addition to the payment
               to which Party B is otherwise entitled under this Agreement,
               such additional amount (the "Gross Up Amount") as is necessary
               to ensure that the net amount actually received by Party B will
               equal the full amount which Party B would have received had no
               such deduction or withholding been required.

     (ii) Liability

          If:

          (A)  X is required by any applicable law, as modified by the
               practice of any relevant governmental revenue authority, to
               make any deduction or withholding for or on account of any Tax
               in respect of payments under this Agreement; and

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

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

          then, except to the extent that Y has satisfied or then satisfies
          the liability resulting from such Tax, (A) where X is Party B, Party
          A will promptly pay to Party B the amount of such liability (the
          "Liability Amount") (including any related liability for interest
          and together with an amount equal to the Tax payable by Party B on
          receipt of such amount but including any related liability for
          penalties only if Party A has failed to comply with or perform any
          agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)) and Party
          B will promptly pay to the

                                      40
<PAGE>

          relevant government revenue authority the amount of such liability
          (including any related liability for interest and penalties) and (B)
          where X is Party A and Party A would have been required to pay a
          Gross Up Amount to Party B, Party A will promptly pay to the
          relevant government revenue authority the amount of such liability
          (including any related liability for interest and penalties).

    (iii) Tax Credit, etc.

          (a)  Where Party A pays an amount in accordance with Section
               2(d)(i)(D) or 2(d)(ii)(C) above, Party B undertakes as
               follows:-

               (1)  to the extent that Party B obtains any Tax credit,
                    allowance, set-off or repayment from the tax authorities
                    of any jurisdiction relating to any deduction or
                    withholding giving rise to such payment or in the case of
                    Section 2(d)(ii)(B) the amount to be assessed ("Tax
                    Credit"), it shall pay to Party A on the next Note
                    Interest Payment Date after receipt of the same so much of
                    the cash benefit (as determined in accordance with
                    sub-paragraph (iii)(a)(2) below) relating thereto which it
                    has received as will leave Party B in substantially the
                    same (but in any event no worse) position as Party B would
                    have been in if no such deduction or withholding had been
                    required or the amount had not been so assessed;

               (2)  the "cash benefit" shall, in the case of credit, allowance
                    or set-off, be the additional amount of Tax which would
                    have been payable by Party B in the jurisdiction referred
                    to in sub-paragraph (iii)(a)(1) above but for the
                    obtaining by it of the said Tax credit, allowance or
                    set-off and, in the case of a repayment, shall be the
                    amount of the repayment together, in either case, with any
                    related interest or similar payment obtained by Party B;
                    and

               (3)  it will use all best endeavours to obtain any Tax Credit
                    as soon as is reasonably practicable, provided that it
                    shall be the sole judge of the amount of any such Tax
                    Credit and of the date on which the same is received and
                    shall not be obliged to disclose to Party A any
                    information regarding its tax affairs or tax computations
                    save that Party B shall, upon request by Party A, supply
                    Party A with a reasonably detailed explanation of its
                    calculation of the amount of any such Tax Credit and of
                    the date on which the same is received.

                    The definition of "Indemnifiable Tax" in Section 14 shall
                    be deleted and the following shall be substituted
                    therefor:

                    "Indemnifiable Tax" means any Tax."

                                      41
<PAGE>

     (r)  Change of Account

          Section 2(b) of this Agreement is hereby amended by the addition of
          the following at the end thereof:

          "; provided that such new account shall be in the same legal and tax
          jurisdiction as the original account and such new account, in the
          case of Party B, is held with a financial institution with a
          long-term unsecured and unsubordinated debt obligation rating of at
          least "A1" by Moody's and a short-term unsecured, unsubordinated and
          unguaranteed debt obligation rating of at least "P-1" by Moody's and
          "A-1+" by S&P."

     (s)  Condition Precedent

          Section 2(a)(iii) shall be amended by the deletion of the words "or
          Potential Event of Default" in respect of conditions precedent to
          the obligations of Party A only.

     (t)  Representations

          (i)  Section 3(a)(v) shall be amended by the addition of the words
               "(with the exception of Section 11 insofar as it relates to any
               Stamp Tax)" after the words "this Agreement".

          (ii) Section 3(b) shall be amended by the deletion of the words "or
               Potential Event of Default" in respect of the representation
               given by Party B only.

     (u)  Transfers

          (i)  Section 7 of this Agreement shall not apply to Party A, who
               shall be required to comply with, and shall be bound by, the
               following:

               Without prejudice to Section 6(b)(ii) Party A may transfer all
               its interest and obligations in and under this Agreement to any
               other entity (a "Transferee"), provided that:

               (a)  it has given five Business Days prior written notice to
                    the Note Trustee;

               (b)  the Transferee's long-term, unsecured and unsubordinated
                    debt obligations are then rated not less than "A1" by
                    Moody's and its short-term, unsecured and unsubordinated
                    debt obligations are then rated not less than "P-1" by
                    Moody's, "A-1+" by S&P and "F1" by Fitch (or its
                    equivalent by any substitute rating agency) or such
                    Transferee's obligations under this Agreement are
                    guaranteed by an entity whose long-term, unsecured and
                    unsubordinated debt obligations are then rated not less
                    than "A1" by Moody's and whose short-term, unsecured and
                    unsubordinated debt obligations are then rated not less
                    than "P-1" by Moody's, "A-1+" by S&P and "F1"by Fitch (or
                    its equivalent by any substitute rating agency);

                                      42
<PAGE>

               (c)  as of the date of such transfer the Transferee will not,
                    as a result of such transfer, be required to withhold or
                    deduct on account of Tax under this Agreement;

               (d)  a Termination Event or an Event of Default does not occur
                    under this Agreement as a result of such transfer;

               (e)  no additional amount will be payable by Party B to Party A
                    or the Transferee on the next succeeding Scheduled Payment
                    Date as a result of such transfer; and

               (f)  (if the Transferee is domiciled in a different country
                    from both Party A and Party B) S&P, Moody's and Fitch have
                    provided prior written notification that the then current
                    ratings of the Issuer Notes will not be adversely
                    affected.

               Following such transfer all references to Party A shall be
               deemed to be references to the Transferee.

     (v)  Contracts (Rights of Third Parties) Act 1999

          A person who is not a party to this Agreement shall have no right
          under the Contracts (Rights of Third Parties) Act 1999 to enforce
          any of its terms but this shall not affect any right or remedy of a
          third party which exists or is available apart from that Act.

     (w)  Calculations if an Early Termination Date occurs as a result of an
          Event of Default or Additional Termination Event where Party A is
          the Defaulting Party or the sole Affected Party.

          Subject to compliance with clause 14.3(m) (Issuer Swap Agreements)
          of the Issuer Deed of Charge, upon the occurrence of an Event of
          Default or an Additional Termination Event where Party A is the
          Defaulting Party or the sole Affected Party, as applicable, Party B
          will be entitled (but not obliged in the event that it does not
          designate an Early Termination Date) to proceed in accordance with
          Section 6 of the Agreement subject to the following:

          (i)  For the purposes of Section 6(d)(i) of this Agreement, Party
               B's obligation with respect to the extent of information to be
               provided with its calculations is limited to information Party
               B has already received in writing and provided Party B is able
               to release this information without breaching the provisions of
               any law applicable to, or any contractual restriction binding
               upon, Party B.

          (ii) The following amendments shall be deemed to be made to the
               definitions of "Market Quotation":

               (a)  the word "firm" shall be added before the word
                    "quotations" in the second line; and

                                      43
<PAGE>

               (b)  the words "provided that the documentation relating
                    thereto is either the same as this Agreement and the
                    Confirmations with respect to the Terminated Transactions
                    (and the long-term unsecured and unsubordinated debt
                    obligations of the Reference Market-maker are rated not
                    less than "A1" by Moody's, and its short-term, unsecured
                    and unsubordinated debt obligations are rated not less
                    than "P-1" by Moody's, "A-1+" by S&P and "F1" by Fitch
                    (or, if such Reference Market-maker is not rated by a
                    Rating Agency, at such equivalent rating (by another
                    rating agency) that is acceptable to each such Rating
                    Agency) or the Rating Agencies have confirmed in writing
                    such proposed documentation will not adversely impact the
                    ratings of the Issuer Notes" shall be added after "agree"
                    in the sixteenth line; and

               (c)  the last sentence shall be deleted and replaced with the
                    following:

                    "If, on the last date set for delivery of quotations,
                    exactly two quotations are provided, the Market Quotation
                    will be the arithmetic mean of the two quotations. If only
                    one quotation is provided on such date, Party B may, in
                    its discretion, accept such quotation as the Market
                    Quotation and if Party B does not accept such quotation
                    (or if no quotation has been provided), it will be deemed
                    that the Market Quotation in respect of the Terminated
                    Transaction cannot be determined."

         (iii) For the purpose of the definition of "Market Quotation", and
               without limitation of the general rights of Party B under the
               Agreement:

               (A)  Party B will undertake to use its reasonable efforts to
                    obtain at least three firm quotations as soon as
                    reasonably practicable after the Early Termination Date
                    and in any event within the time period specified pursuant
                    to sub-paragraph (w)(iii)(C) below;

               (B)  Party A shall, for the purposes of Section 6(e), be
                    permitted to obtain quotations from Reference
                    Market-makers; and

               (C)  if no quotations have been obtained within six Local
                    Business Days after the occurrence of the Early
                    Termination Date or such longer period as Party B may
                    specify in writing to Party A, then it will be deemed that
                    the Market Quotation in respect of the Terminated
                    Transaction cannot be determined.

          (iv) Party B will be deemed to have discharged its obligations under
               sub-paragraph (w)(iii)(A) above if it requests that Party A
               (such request to be in writing and made within two Local
               Business Days after the occurrence of the Early Termination
               Date) obtains quotations from Reference Market-makers and Party
               A agrees to act in accordance with such request.

          (v)  Party B will not be obliged to consult with Party A as to the
               day and time of obtaining any quotations.

                                      44
<PAGE>

                                    ISDA(R)
             International Swaps and Derivatives Association, Inc.

                             CREDIT SUPPORT ANNEX

                            to the Schedule to the

                             ISDA Master Agreement

           dated as of the Trade Date specified in the Confirmation

                                    between

ABN AMRO BANK N.V., LONDON BRANCH       and          GRANITE MASTER ISSUER plc
         ("Party A")                                       ("Party B")

This Annex supplements, forms part of, and is subject to, the ISDA Master
Agreement referred to above and is part of its Schedule. For the purposes of
this Agreement, including, without limitation, Sections 1(c), 2(a), 5 and 6,
the credit support arrangements set out in this Annex constitute a Transaction
(for which this Annex constitutes the Confirmation).

Paragraph 1. Interpretation

Capitalised terms not otherwise defined in this Annex or elsewhere in this
Agreement have the meanings specified pursuant to Paragraph 10, 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 11 and the other provisions of this Annex, Paragraph 11 will
prevail. For the avoidance of doubt, references to "transfer" in this Annex
mean, in relation to cash, payment, and in relation to the assets, delivery.

Paragraph 2.  Credit Support Obligations

(a) Delivery Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferee on or promptly following a Valuation Date, if the Delivery Amount
for that Valuation Date equals or exceeds the Transferor's Minimum Transfer
Amount, then the Transferor will transfer to the Transferee Eligible Credit
Support having a Value as of the date of transfer at least equal to the
applicable Delivery Amount (rounded pursuant to Paragraph 11(b)(iii)(D)).
Unless otherwise specified in Paragraph 11(b), the "Delivery Amount"
applicable to the Transferor for any Valuation Date will equal the amount by
which:

     (i) the Credit Support Amount

<PAGE>

     exceeds

     (ii) the Value as of that Valuation Date of the Transferor's Credit
     Support Balance (adjusted to include any prior Delivery Amount and to
     exclude any prior Return Amount, the transfer of which, in each case, has
     not yet been completed and for which the relevant Settlement Day falls on
     or after such Valuation Date).

(b) Return Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferor on or promptly following a Valuation Date, if the Return Amount for
that Valuation Date equals or exceeds the Transferee's Minimum Transfer
Amount, then the Transferee will transfer to the Transferor Equivalent Credit
Support specified by the Transferor 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 11(b)(iii)(D)) and the Credit Support Balance
will, upon such transfer, be reduced accordingly. Unless otherwise specified
in Paragraph 11(b), the "Return Amount" applicable to the Transferee for any
Valuation Date will equal the amount by which:

     (i) the Value as of that Valuation Date of the Transferor's Credit
     Support Balance (adjusted to include any prior Delivery Amount and to
     exclude any prior Return Amount, the transfer of which, in each case, has
     not yet been completed and for which the relevant Settlement Day falls on
     or after such Valuation Date).

     exceeds

     (ii) the Credit Support Amount.

Paragraph 3. Transfers, Calculations and Exchanges

(a) Transfers. All transfers under this Annex of any Eligible Credit Support,
Equivalent Credit Support, Interest Amount or Equivalent Distributions shall
be made in accordance with the instructions of the Transferee or Transferor,
as applicable, and shall be made:

     (i) in the case of cash, by transfer into one or more bank accounts
     specified by the recipient;

     (ii) in the case of certificated securities which cannot or which the
     parties have agreed will not be delivered by book-entry, by delivery in
     appropriate physical form to the recipient or its account accompanied by
     any duly executed instruments of transfer, transfer tax stamps and any
     other documents necessary to constitute a legally valid transfer of the
     transferring party's legal and beneficial title to the recipient; and

     (iii) in the case of securities which the parties have agreed will be
     delivered by book-entry, by the giving of written instructions
     (including, for the avoidance of doubt, instructions given by telex,
     facsimile transmission or electronic messaging system) to the relevant
     depository institution or other entity specified by the recipient,
     together with a written copy of the instructions to the recipient,
     sufficient, if complied with, to result in a legally effective transfer
     of the transferring party's legal and beneficial title to the recipient.

Subject to Paragraph 4 and unless otherwise specified, if a demand for the
transfer of Eligible Credit Support or Equivalent Credit Support is received
by the Notification Time, then the

<PAGE>

relevant transfer will be made not later than the close of business on the
Settlement Day relating to the date such demand is received; if a demand is
received after the Notification Time, then the relevant transfer will be made
not later than the close of business on the Settlement Day relating to the day
after the date such demand is received.

(b) Calculations. All calculations of Value and Exposure for purposes of
Paragraphs 2 and 4(a) will be made by the relevant Valuation Agent as of the
relevant 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 4(a), following the date of
calculation).

(c) Exchanges.

     (i) Unless otherwise specified in Paragraph 11, the Transferor may on any
     Local Business Day by notice inform the Transferee that it wishes to
     transfer to the Transferee Eligible Credit Support specified in that
     notice (the "New Credit Support") in exchange for certain Eligible Credit
     Support (the "Original Credit Support") specified in that notice
     comprised in the Transferor's Credit Support Balance.

     (ii) If the Transferee notifies the Transferor that it has consented to
     the proposed exchange, (A) the Transferor will be obliged to transfer the
     New Credit Support to the Transferee on the first Settlement Day
     following the date on which it receives notice (which may be oral
     telephonic notice) from the Transferee of its consent and (B) the
     Transferee will be obliged to transfer to the Transferor Equivalent
     Credit Support in respect of the Original Credit Support not later than
     the Settlement Day following the date on which the Transferee receives
     the New Credit Support, unless otherwise specified in Paragraph 11(d)
     (the "Exchange Date"); provided that the Transferee will only be obliged
     to transfer Equivalent Credit Support with a Value as of the date of
     transfer as close as practicable to, but in any event not more than, the
     Value of the New Credit Support as of that date.

Paragraph 4. Dispute Resolution

(a) Disputed Calculations or Valuations. If a party (a "Disputing Party")
reasonably 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 Equivalent 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, in the case of (I)
     above, the date that the demand is received under Paragraph 2 or, in the
     case of (II) above, the date of transfer;

     (2) in the case of (I) above, the appropriate party will transfer the
     undisputed amount to the other party not later than the close of business
     on the Settlement Day following the date that the demand is received
     under Paragraph 2;

     (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:

<PAGE>

          (i) in the case of a dispute involving a Delivery Amount or Return
          Amount, unless otherwise specified in Paragraph 11(c), the Valuation
          Agent will recalculate the Exposure and the Value as of the
          Recalculation Date by:

               (A) utilising any calculations of that part of the Exposure
               attributable to the Transactions that the parties have agreed
               are not in dispute;

               (B) calculating that part of the Exposure attributable to the
               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, then fewer than four
               quotations may be used for that Transaction, and if no
               quotations are available for a particular Transaction, then the
               Valuation Agent's original calculations will be used for the
               Transaction; and

               (C) utilising the procedures specified in Paragraph 11(e)(ii)
               for calculating the Value, if disputed, of the outstanding
               Credit Support Balance;

          (ii) in the case of a dispute involving the Value of any transfer of
          Eligible Credit Support or Equivalent Credit Support, the Valuation
          Agent will recalculate the Value as of the date of transfer pursuant
          to Paragraph 11(e)(ii).

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) as
soon as possible but in any event not later than the Notification Time on the
Local Business Day following the Resolution Time. The appropriate party will,
upon demand following such notice given the Valuation Agent or resolution
pursuant to (3) above and subject to Paragraph 3(a), make the appropriate
transfer.

(b) No Event of Default. The failure by a party to make a transfer of any
amount which is the subject of a dispute to which Paragraph 4(a) applies will
not constitute an Event of Default for as long as the procedures set out in
this Paragraph 4 are being carried out. For the avoidance of doubt, upon
completion of those procedures, Section 5(a)(i) of this Agreement will apply
to any failure by a party to make a transfer required under the final sentence
of Paragraph 4(a) on the relevant due date.

Paragraph 5. Transfer of Title, No Security Interest, Distributions and
Interest Amount

(a) Transfer of Title. Each party agrees that all right, title and interest in
and to any Eligible Credit Support, Equivalent Credit Support, Equivalent
Distributions or Interest Amount which it transfers to the other party under
the terms of this Annex shall vest in the recipient free and clear of any
liens, claims, charges or encumbrances or any other interest of the
transferring party or of any third person (other than a lien routinely imposed
on all securities in a relevant clearance system).

(b) No Security Interest. Nothing in this Annex is intended to create or does
create in favour of either party any mortgage, charge, lien, pledge,
encumbrance or other security interest

<PAGE>

in any cash or other property transferred by one party to the other party
under the terms of this Annex.

(c) Distributions and Interest Amount.

     (i) Distributions. The Transferee will transfer to the Transferor not
     later than the Settlement Day following each Distributions Date cash,
     securities or other property of the same type, nominal value, description
     and amount as the relevant Distributions ("Equivalent Distributions") to
     the extent that a Delivery Amount would not be created or increased by
     the transfer, as calculated by the Valuation Agent (and the date of
     calculation will be deemed a Valuation Date for this purpose).

     (ii) Interest Amount. Unless otherwise specified in Paragraph 11(f)(iii),
     the Transferee will transfer to the Transferor at the times specified in
     Paragraph 11(f)(ii) the relevant Interest Amount to the extent that a
     Delivery Amount would not be created or increased by the transfer, as
     calculated by the Valuation Agent (and the date of calculation will be
     deemed a Valuation Date for this purpose).

Paragraph 6. Default

If any Early Termination Date is designated or deemed to occur as a result of
an Event of Default in relation to a party, an amount equal to the Value of
the Credit Support Balance, determined as though the Early Termination Date
were a Valuation Date, will be deemed to be an Unpaid Amount due to the
Transferor (which may or may not be the Defaulting Party) for purposes of
Section 6(e). For the avoidance of doubt, if Market Quotation is the
applicable payment measure for purposes of Section 6(e), then the Market
Quotation determined under Section 6(e) in relation to the Transaction
constituted by this Annex will be deemed to be zero, and if Loss is the
applicable payment measure for purposes of Section 6(e), then the Loss
determined under Section 6(e) in relation to the Transaction will be limited
to the Unpaid Amount representing the Value of the Credit Support Balance.

Paragraph 7. Representation

Each party represents to the other party (which representation will be deemed
to be repeated as of each date on which it transfers Eligible Credit Support,
Equivalent Credit Support or Equivalent Distributions) that is the sole owner
of or otherwise has the right to transfer all Eligible Credit Support,
Equivalent Credit Support or Equivalent Distributions it transfers to the
other party under this Annex, free and clear of any security interest, lien
encumbrance or other restriction (other than lien routinely imposed on all
securities in a relevant clearance system).

Paragraph 8. Expenses

Each party will pay its own costs and expenses (including any stamp, transfer,
or similar transaction tax or duty payable on any transfer it is required to
make under this Annex) in connection with performing its obligations under
this Annex, and neither party will be liable for any such costs and expenses
incurred by the other party.

Paragraph 9. Miscellaneous

<PAGE>

(a) Default Interest. Other than in the case of an amount which is the subject
of dispute under Paragraph 4(a), if a Transferee fails to make, when due, any
transfer of Equivalent Credit Support, Equivalent Distributions or the
Interest Amount, it will be obliged to pay the Transferor (to the extent
permitted under applicable law) an amount equal to interest at the Default
Rate multiplied by the Value on the relevant Valuation Date of the items of
property that were required to be transferred, from (and including) the date
that the Equivalent Credit Support, Equivalent Distributions or Interest
Amount were required to be transferred to (but excluding) the date of transfer
of the Equivalent Credit Support, Equivalent Distributions or Interest Amount.
This interest will be calculated on the basis of daily compounding and the
actual number of days elapsed.

(b) 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.

(c) Demands and Notices. All demands and notices given by a party under this
Annex will be given as specified in Section 12 of this Agreement.

(d) Specifications of Certain Matters. Anything referred to in this Annex as
being specified in Paragraph 11 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.

Paragraph 10. Definitions

As used in this Annex:

"Base Currency" means the currency specified as such in Paragraph 11(a)(i).

"Base Currency Equivalent" means, with respect to an amount on a Valuation
Date, in the case of an amount denominated in the Base Currency, such Base
Currency and, in the case of an amount denominated in a currency other than
the Base Currency (the "Other Currency"), the amount of Base Currency required
to purchase such amount of the Other Currency at the spot exchange rate
determined by the Valuation Agent for value on such Valuation Date.

"Credit Support Amount" means, with respect to a Transferor on a Valuation
Date, (i) the Transferee's Exposure plus (ii) all Independent Amounts
applicable to the Transferor, if any, minus (iii) all Independent Amounts
applicable to the Transferee, if any, minus (iv) the Transferor'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.

"Credit Support Balance" means, with respect to a Transferor on a Valuation
Date, the aggregate of all Eligible Credit Support that has been transferred
to or received by the Transferee under this Annex, together with any
Distributions and all proceeds of any such Eligible Credit Support or
Distributions, as reduced pursuant to Paragraph 2(b), 3(c)(ii) or 6. Any
Equivalent Distributions or Interest Amount (or portion of either) not
transferred pursuant to Paragraph 5(c)(i) or (ii) will form part of the Credit
Support Balance.

"Delivery Amount" has the meaning specified in Paragraph 2(a).

"Disputing Party" has the meaning specified in Paragraph 4.

<PAGE>

"Distributions" means, with respect to any Eligible Credit Support comprised
in the Credit Support Balance consisting of securities, all principal,
interest and other payments and distributions of cash or other property to
which a holder of securities of the same type, nominal value, description and
amount as such Eligible Credit Support would be entitled from time to time.

"Distribution Date" means, with respect to any Eligible Credit Support
comprised in the Credit Support Balance other than cash, each date on which a
holder of such Eligible Credit Support is entitled to receive Distributions
or, if that date is not a Local Business Day, the next following Local
Business Day.

"Eligible Credit Support" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 11(b)(ii) including, in relation
to any securities, if applicable, the proceeds of any redemption in whole or
in party of such securities by the relevant issuer.

"Eligible Currency" means each currency specified as such in Paragraph
11(a)(ii), if such currency is freely available.

"Equivalent Credit Support" means, in relation to any Eligible Credit Support
comprised in the Credit Support Balance, Eligible Credit Support of the same
type, nominal value, description and amount as that Eligible Credit Support.

"Equivalent Distributions" has the meaning specified in Paragraph 5(c)(i).

"Exchange Date" has the meaning specified in Paragraph 11(d).

"Exposure" means, with respect to a party on a Valuation Date and subject to
Paragraph 4 in the case of a dispute, the amount, if any, that would be
payable to that party by the other party (expressed as a positive number) or
by that party to the other party (expressed as a negative number) pursuant to
Section 6(e)(ii)(1) of this Agreement if all Transactions (other than the
Transaction constituted by this Annex) were being terminated as of the
relevant Valuation Time, on the basis that (i) that party is not the Affected
Party and (ii) the Base Currency is the Termination Currency; provided that
Market Quotations will be determined by the Valuation Agent on behalf of that
party 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 Base Currency
Equivalent of the amount specified as such for that party in Paragraph
11(b)(iii)(A); if not amount is specified, zero.

"Interest Amount" means, with respect to an Interest Period, the aggregate sum
of the Base Currency Equivalents of the amounts of interest determined for
each relevant currency and calculated for each day in that Interest Period on
the principal amount of the portion of the Credit Support Balance comprised of
cash in such currency, determined by the Valuation Agent for each such day as
follows:

     (x) the amount of cash in such currency on that day; multiplied by

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

<PAGE>

     (z) 360 (or, in the case of pounds sterling, 365).

"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 Eligible
Credit Support or Equivalent Credit Support in the form of cash was
transferred to or received by the Transferee) to (but excluding) the Local
Business Day on which the current Interest Amount is transferred.

"Interest Rate" means with respect to an Eligible Currency, the rate specified
in Paragraph 11(f)(i) for that currency.

"Local Business Day" , unless otherwise specified in Paragraph 11(h), means:

     (i) in relation to a transfer of cash or other property (other than
     securities) under this Annex, a day on which commercial banks are open
     for business (including dealings in foreign exchange and foreign currency
     deposits) 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;

     (ii) in relation to a transfer of securities under this Annex, a day on
     which the clearance system agreed between the parties for delivery of the
     securities is open for the acceptance and execution of settlement
     instructions or, if delivery of the securities is contemplated by other
     means, a day on which commercial banks are open for business (including
     dealings in foreign exchange and foreign currency deposits) in the
     place(s) agreed between the parties for this purpose.

     (iii) in relation to a valuation under this Annex, a day on which
     commercial banks are open for business (including dealings in foreign
     exchange and foreign currency deposits) in the place of location of the
     Valuation Agent and in the place(s) agreed between the parties for this
     purpose; and

     (iv) in relation to any notice or other communication under this Annex, a
     day on which commercial banks are open for business (including dealings
     in foreign exchange and foreign currency deposits) in the place specified
     in the address for notice most recently provided by the recipient.

"Minimum Transfer Amount" means, with respect to a party, the amount specified
as such for that party in Paragraph 11(b)(iii)(C); if no amount is specified,
zero.

"New Credit Support" has the meaning specified in Paragraph 3(c)(i).

"Notification Time" has the meaning specified in Paragraph 11(c)(iv).

"Recalculation Date" means the Valuation Date that gives rise to the dispute
under Paragraph 4; provided however, that if a subsequent Valuation Date
occurs under Paragraph 2 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 2.

"Resolution Time" has the meaning specified in Paragraph 11(c)(i).

"Return Amount" has the meaning specified in Paragraph 2(b).

<PAGE>

"Settlement Day" means, in relation to a date, (i) with respect to a transfer
of cash or other property (other than securities), the next Local Business Day
and (ii) with respect to a transfer of securities, the first Local Business
Day after such date on which settlement of a trade in the relevant securities,
if effected on such date, would have been settled in accordance with customary
practice when settling through the clearance system agreed between the parties
for delivery of such securities or, otherwise, on the market in which such
securities are principally traded (or, in either case, if there is no such
customary practice, on the first Local Business Day after such date on which
it is reasonably practicable to deliver such securities).

"Threshold" means, with respect to a party, the Base Currency Equivalent of
the amount specified as such for that party in Paragraph 11(b)(iii)(B); if no
amount is specified, zero.

"Transferee" means, in relation to each Valuation Date, the party in respect
of which Exposure is a positive number and, in relation to a Credit Support
Balance, the party which, subject to this Annex, owes such Credit Support
Balance or, as the case may be, the Value of such Credit Support Balance to
the other party.

"Transferor" means, in relation to a Transferee, the other party.

"Valuation Agent" has the meaning specified in Paragraph 11(c)(i).

"Valuation Date" means each date specified in or otherwise determined pursuant
to Paragraph 11(c)(ii).

"Valuation Percentage" means, for any item of Eligible Credit Support, the
percentage specified in Paragraph 11(b)(ii).

"Valuation Time" has the meaning specified in Paragraph 11(c)(iii).

"Value" means, for any Valuation Date or other date for which Value is
calculated, and subject to Paragraph 4 in the case of a dispute, with respect
to:

     (i)  Eligible Credit Support comprised in a Credit Support Balance that
          is:

          (A) an amount of cash, the Base Currency Equivalent of such amount
          multiplied by the applicable Valuation Percentage, if any; and

          (B) a security, the Base Currency Equivalent of the bid price
          obtained by the Valuation Agent multiplied by the applicable
          Valuation Percentage, if any; and

     (ii) items that are comprised in a Credit Support Balance and are not
          Eligible Credit Support, zero.

<PAGE>

                                            ABN AMRO/Granite Master Issuer plc
              Cross Currency/Interest Rate Paragraph 11 to the English law CSA
                                                 Agreed Form Version: 06.03.06

                           Agreed Form Paragraph 11

Paragraph 11.  Elections and Variables

(a)  Base Currency and Eligible Currency.

     (i)  "Base Currency" means Pounds Sterling.

     (ii) "Eligible Currency" means the Base Currency and each other currency
          specified here:
          If the Transaction is a EUR/GBP cross currency swap transaction, Euro;
          If the Transaction is a USD/GBP cross currency swap transaction, US
          Dollars.

     It is agreed by the parties that where the Credit Support Amount is
     transferred in a currency other than the Eligible Currency, the Valuation
     Percentage specified in Paragraph 11(b)(ii) shall be reduced by a
     percentage agreed by the parties and approved by the relevant rating
     agency ("Additional Valuation Percentage"), such Additional Valuation
     Percentage being as agreed by the parties and approved by the relevant
     rating agency. For the purpose of this Annex, references to the "relevant
     rating agency" shall mean the rating agency whose Ratings Criteria will
     be used to determine the amount of Eligible Credit Support that Party A
     is required to transfer to Party B following a credit ratings downgrade
     of Party A.

(b)  Credit Support Obligations.

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

          (A)  "Delivery Amount" has the meaning specified in Paragraph 2(a),
               except that the words "upon a demand made by the Transferee"
               shall be deleted.

          (B)  "Return Amount" has the meaning specified in Paragraph 2(b).

          (C)  "Credit Support Amount" has the meaning specified in Paragraph
               11 (h)(vi).

     (ii) Eligible Credit Support. The following items will qualify as
          "Eligible Credit Support" for Party A:

<TABLE>
<CAPTION>
                                                                      Valuation               Valuation
                                                                      Percentage              Percentage
                                                                    in respect of          in respect of S&P
                                                                        Moody's

          <S>                                                         <C>                     <C>
          (A)       cash in an Eligible Currency                         100 %                    100 %

                                      11
<PAGE>

          (B)       Negotiable debt obligations denominated     In relation to residual       In relation to
                    in an Eligible Currency issued by the         maturity as set out      residual maturity as
                    Government of any one of the following:              below:               set out below:
                    Austria, Belgium, Finland, France,
                    Germany, Italy, Luxembourg, the                   (i)      98.5%          (i)      98.5%
                    Netherlands, Portugal, Spain and the
                    Republic of Ireland in each case having a         (ii)     tbd            (ii)     tbd
                    residual maturity at the date of their
                    transfer to Party B (i) of not more than          (iii)    tbd            (iii)    tbd
                    one year; (ii) equal to or greater than
                    one year but less than five years; (iii)          (iv)     tbd            (iv)     tbd
                    equal to or greater than five years but
                    less than ten years; or (iv) equal to or
                    greater than ten years (with local and
                    foreign currency long term issuer ratings
                    of Moody's Aa3, S&P AA- and Fitch AA- or
                    above)

          (C)       Negotiable debt obligations denominated     In relation to residual       In relation to
                    in an Eligible Currency issued by the         maturity as set out      residual maturity as
                    Government of the United Kingdom having a            below:               set out below:
                    residual maturity at the date of their
                    transfer to Party B (i) of not more than          (i)      98.5%          (i)      98.5%
                    one year; (ii) equal to or greater than
                    one year but less than five years; (iii)          (ii)     tbd            (ii)     tbd
                    equal to or greater than five years but
                    less than ten years; or (iv) equal to or          (iii)    tbd            (iii)    tbd
                    greater than ten years (with local and
                    foreign currency long term issuer ratings         (iv)     tbd            (iv)     tbd
                    of Moody's Aa3, S&P AA- and Fitch AA- or
                    above)

          (D)       Negotiable debt obligations denominated     In relation to residual       In relation to
                    in an Eligible Currency issued after 18       maturity as set out      residual maturity as
                    July 1984 by the U.S. Treasury Department            below:               set out below:
                    having a residual maturity at the date of
                    their transfer to Party B (i) of not more         (i)      98.5%          (i)      98.5%
                    than one year; (ii) equal to or greater
                    than one year but less than five years;           (ii)     tbd            (ii)     tbd
                    (iii) equal to or greater than five years
                    but less than ten years; or (iv) equal to         (iii)    tbd            (iii)    tbd
                    or greater than ten years (with local and
                    foreign currency long term issuer ratings         (iv)     tbd            (iv)     tbd
                    of Moody's Aa3, S&P AA- and Fitch AA- or
                    above)

                                      12
<PAGE>

          (E)       Negotiable debt obligations of the US       In relation to residual       In relation to
                    Government National Mortgage Association,     maturity as set out      residual maturity as
                    the US Federal Home Loan Mortgage                    below:               set out below:
                    Corporation, the US Student Loans
                    Marketing Association or a US Federal             (i)      98.5%          (i)      98.5%
                    Home Loan Bank in each case having a
                    residual maturity at the date of their            (ii)     tbd            (ii)     tbd
                    transfer to Party B (i) of not more than
                    one year; (ii) equal to or greater than           (iii)    tbd            (iii)    tbd
                    one year but less than five years; (iii)
                    equal to or greater than five years but           (iv)     tbd            (iv)     tbd
                    less than ten years; or (iv) equal to or
                    greater than ten years (with local and
                    foreign currency long term issuer ratings
                    of Moody's Aa1, S&P AA+ and Fitch AA+ or
                    above)

          (F)       such other items as agreed between Party              tbd                      tbd
                    A and the Rating Agencies, from time to
                    time, which Party B can lawfully receive
                    from, and transfer back to, Party A as
                    required, that will qualify as Eligible
                    Credit Support.

</TABLE>

          "tbd" means a percentage to be determined in accordance with the
          relevant Rating Agency.

          For the purposes of Fitch, Valuation Percentage shall mean, in
          respect of paragraphs 11(b)(ii)(B) to (F), the Advanced Rate as
          published by Fitch under the heading "Notes: Rating/AAA" in the
          table entitled "Advance Rates (%)" in Appendix 3 to Fitch's
          Structured Finance Report entitled "Counterparty Risk in Structured
          Finance Transactions: Swap Criteria" dated 13 September 2004, save
          that Valuation Percentage shall mean, for the purposes of Fitch,
          100% in respect of paragraph 11(b)(ii)(A) only.

          Where negotiable debt obligations are rated by only one of the above
          relevant rating agencies, the rating applied will be based on the
          rating of that agency.

          Where the ratings and/or the Valuation Percentages of the relevant
          rating agencies differ with respect to the same negotiable debt
          obligation, for the purposes of (B) to (E) above the lower of the
          ratings and/or the Valuation Percentages, as the case may be, shall
          apply.

    (iii) Thresholds.

          (A)  "Independent Amount" means, for Party A and Party B, with
               respect to each Transaction, zero.

          (B)  "Threshold" means for Party A:

                                      13
<PAGE>

               infinity, unless (A) (i) an Initial S&P Note Downgrade Event
               and/or an Initial Moody's Note Downgrade Event and/or an
               Initial Fitch Note Downgrade Event has occurred AND (ii) Party
               A has not otherwise complied with Part 5(k)(i)(B), (C) or (D)
               and/or Part 5(l)(i)(A), (B) or (C) and/or Part 5(m)(i)(B), (C)
               or (D), respectively, of the Agreement, OR (B) (i) a Subsequent
               S&P Note Downgrade Event and/or a Subsequent Moody's Note
               Downgrade Event and/or a First Subsequent Fitch Note Downgrade
               Event and/or a Second Subsequent Fitch Note Downgrade Event has
               occurred AND (ii) Party A has not otherwise complied with Part
               5(k)(ii)(A) and/or Part 5(l)(iii)(A), (B) or (C) and/or Part
               5(m)(ii)(B), (C) or (D) or Part 5(m)(iii)(A), (B) or (C)
               respectively, of the Agreement, then its Threshold shall be
               zero.

               "Threshold" means for Party B: infinity.

          (C)  "Minimum Transfer Amount" means, with respect to Party A and
               Party B, GBP 1,000,000 provided, that if (1) an Event of
               Default has occurred and is continuing in respect of which
               Party A is the Defaulting Party, or (2) an Additional
               Termination Event has occurred in respect of which Party A is
               an Affected Party, the Minimum Transfer Amount with respect to
               Party A shall be zero.

               Notwithstanding the provisions of Paragraph 11(iii)(C), when
               the Credit Support Amount with respect to a Transferor on a
               Valuation Date is zero, then for the purposes of any Return
               Amount due to such Transferor, the Minimum Transfer Amount with
               respect to the Transferee shall be zero.

          (D)  "Rounding". The Delivery Amount and the Return Amount will be
               rounded up and down to the nearest integral multiple of GBP
               10,000 respectively, subject to the maximum Return Amount being
               equal to the Credit Support Balance.

(c)  Valuation and Timing.

     (i)  "Valuation Agent" means Party A in all circumstances.

     (ii) "Valuation Date" means each Local Business Day.

    (iii) "Valuation Time" means the close of business on the Local Business
          Day immediately preceding 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 1:00 p.m., London time, on a Local
          Business Day.

(d)  Exchanges.

     (i)  For the purposes of Paragraph 3(c) notice must be given by the
          "Exchange Notification Time" which will be 1:00 p.m., London time,
          on a Local Business Day failing which the relevant notice will be
          deemed to have been received on the following Local Business Day.

     (ii) "Exchange Date" has the meaning specified in Paragraph 3(c)(ii).

                                      14
<PAGE>

(e)  Dispute Resolution.

     (i)  "Resolution Time" means 1:00 p.m., London time, on the Local
          Business Day following the date on which the notice is given that
          gives rise to a dispute under Paragraph 4.

     (ii) Value. For the purpose of Paragraphs 4(a)(4)(i)(C) and 4(a)(4)(ii),
          the Value of the outstanding Credit Support Balance or of any
          transfer of Eligible Credit Support or Equivalent Credit Support, as
          the case may be, will be an amount calculated as follows:

          (A)  with respect to any Eligible Credit Support or Equivalent
               Credit Support comprising securities ("Securities") the Base
               Currency Equivalent of the sum of:

               (a)  (x) the last bid price on such date for such Securities on
                    the principal national securities exchange on which such
                    Securities are listed, multiplied by the applicable
                    Valuation Percentage; or (y) where any Securities are not
                    listed on a national securities exchange, the bid price
                    for such Securities quoted as at the close of business on
                    such date by any principal market maker (which shall not
                    be and shall be independent from the Valuation Agent) for
                    such Securities chosen by the Valuation Agent, multiplied
                    by the applicable Valuation Percentage, or (z) if no such
                    bid price is able to be obtained for such date under
                    sub-paragraphs (x) or (y) above, the last bid price listed
                    determined pursuant to sub-paragraph (x), or failing which
                    sub-paragraph (y), as of the day next preceding such date
                    on which such prices were available, multiplied by the
                    applicable Valuation Percentage; and

               (b)  the accrued interest where applicable on such Securities
                    (except to the extent that such interest shall have been
                    paid to the Transferor pursuant to Paragraph 5(c)(ii) or
                    included in the applicable price referred to in Paragraph
                    11(e)(ii)(A)(a) above) as of such date, provided that it
                    is understood that in no circumstances shall the
                    Transferee be required to transfer a Return Amount in
                    excess of the Credit Support Balance;

          (B)  with respect to any Cash, the Base Currency Equivalent of the
               amount thereof.

     (iii) Alternative. The provisions of Paragraph 4 will apply.

(f)  Distributions and Interest Amount.

     (i)  Interest Rate. The "Interest Rate" in relation to each Eligible
          Currency specified below will be determined on the following basis:

<TABLE>
<CAPTION>

          Eligible Currency                Rate Source                                 Spread

          <S>                              <C>                                         <C>
          Euro                             EONIA (as defined below)                    Zero

                                      15
<PAGE>

          US Dollars                       USD-Federal Funds-H.15 (as defined          Zero
                                           in the 2000 Definitions (as
                                           defined below))

          GB Sterling                      SONIA (as defined below)                    Zero

</TABLE>

     (ii) Transfer of Interest Amount. The Interest Amount in relation to each
          currency comprised in the Credit Support Balance for each Interest
          Period will be credited to the Credit Support Balance on the first
          Local Business Day following the end of each calendar month to the
          extent that Party B has earned and received such amount of interest
          and that a Delivery Amount would not be created or increased by that
          transfer, and on any other Local Business Day on which Equivalent
          Credit Support is transferred to the Transferor pursuant to
          Paragraph 2(b).

    (iii) Alternative to Interest Amount. The provisions of Paragraph
          5(c)(ii) will apply. For the purposes of calculating the Interest
          Amount the amount of interest calculated for each day of the
          Interest Period shall, with respect to any Eligible Currency, be
          compounded daily.

(g)  Addresses for Transfers.

     Party A:

     FedWire Securities

     To be advised by Party A

     USD Cash

     To be advised by Party A

     All other Cash and Securities

     To be advised by Party A

     Party B:

     To be advised by Party B

(h)  Other Provisions.

     (i)  Definitions. The following amendments shall be made to Paragraph 10.

          (a)  The following definition shall be added:

"Collateralised Transaction" means the Transaction designated as such in the
Confirmation and/or specified in the Appendix A to this Annex. For the
avoidance of doubt, the Transaction constituted by this Annex is not a
Collateralised Transaction.

The definition of "Exposure" shall be amended to replace the words
"Transactions (other than the Transaction constituted by this Annex)" in the
fourth line with the words "Collateralised Transactions".

                                      16
<PAGE>

     (ii) Interest Amount. The following amendments shall be made to the
          definitions of "Interest Amount", "Interest Period" and "Interest
          Rate":

          (a)  The definition of "Interest Amount" shall be deleted and
               replaced with the following:

               "Interest Amount" means, with respect to an Interest Period and
               each portion of the Credit Support Balance comprised of cash in
               an Eligible Currency, the sum of the amounts of interest
               determined for each day in that Interest Period by the
               Valuation Agent as follows:

               (x)  the amount of such currency comprised in the Credit
                    Support Balance at the close of business for general
                    dealings in the relevant currency on such day (or, if such
                    day is not a Local Business Day, on the immediately
                    preceding Local Business Day); multiplied by

               (y)  the relevant Interest Rate; divided by

               (z)  360 (or in the case of pounds sterling, 365).

          (b)  The definition of "Interest Period" shall be deleted and
               replaced with the following:

               "Interest Period" means each calendar month.

          (c)  The definition of "Interest Rate" shall be deleted and replaced
               with the following:

               "Interest Rate" for any day during an Interest Period means,
               with respect to cash in an Eligible Currency, the rate equal to
               the sum of (a) the rate determined in accordance with the Rate
               Source specified in Paragraph 11(f)(i), and (b) the Spread
               (which may be a negative number) specified in Paragraph
               11(f)(i). Notwithstanding the foregoing, in relation to any day
               of the Interest Period which is not a Local Business Day for
               the relevant Eligible Currency, the applicable rate shall be
               the rate determined for the immediately preceding Local
               Business Day. Where a Rate Source is specified in Paragraph
               11(f)(i) using a Floating Rate Option defined in Section 7.1 of
               the Annex to the 2000 ISDA Definitions (the "2000
               Definitions"), then the Rate Source shall be determined in
               accordance with the relevant Floating Rate Option as though
               such day (or where relevant, the immediately preceding Local
               Business Day) were a Reset Date.

          (d)  "SONIA" for any day, means the reference rate equal to the
               overnight rate as calculated by the Wholesale Market Brokers
               Association which appears on the Telerate Page 3937 under the
               heading "Sterling Overnight Index" as of 9:00 a.m., London
               time, on the first London Banking Day following that day.

          (e)  "EONIA" for any day means the reference rate equal to the
               overnight rate as calculated by the European Central Bank and
               appearing on the Telerate Page 247 on the first TARGET
               Settlement Day following that day. For the purposes of this
               Annex, TARGET Settlement Day means any day on which the
               Trans-European Automated Real-Time Gross Settlement Express
               Transfer (TARGET) System is open.

                                      17
<PAGE>

          (f)  "Rating Agency" means any one of Fitch, S&P or Moody's, as the
               context requires.

          (g)  "Fitch" means Fitch Ratings Ltd and includes any successors
               thereto.

          (h)  "Moody's" means Moody's Investors Service Limited and includes
               any successors thereto.

          (i)  "S&P" means Standard & Poor's Rating Services, a division of
               The McGraw-Hill Companies Inc. and includes any successors
               thereto.

    (iii) Implementation of Credit Support Annex.

          Notwithstanding anything to the contrary in this Agreement and for
          the avoidance of doubt, Party A's obligation to transfer Eligible
          Credit Support pursuant to the terms of this Credit Support Annex
          will be subject to the provisions of Part 5(k), (l) and (m) of the
          Schedule to this Agreement.

     (iv) The definitions of "Transferee" and "Transferor" in Paragraph 10 of
          this Annex shall be deleted in their entirety and replaced with the
          following in lieu thereof:

          "Transferor" means Party A; and

          "Transferee" means Party B,

          and, for the avoidance of Party B shall have no obligation to make
          transfer of any Delivery Amounts to Party A pursuant to the terms of
          this Annex.

     (v)  Credit Support Amount.

          "Credit Support Amount" shall have the meaning set out in (a), (b)
          or (c) below, as appropriate, save that if credit support is
          required to be provided hereunder by Party A to Party B pursuant to
          the provisions of more than one of Part 5(k), (l) and (m) of the
          Schedule to this Agreement, the amount of such credit support shall
          be determined by reference to the definition of "Credit Support
          Amount" that would yield the greatest Delivery Amount:

          (a)  where the credit support is to be provided pursuant to the
               provisions of Part 5(k)(i) or (ii) of the Schedule to this
               Agreement, an amount calculated in accordance with the S&P
               criteria used by S&P in S&P's Structured Finance report
               entitled "Global Interest Rate and Currency Swaps: Calculating
               the Collateral Required Amount" published on 26 February 2004
               and S&P's article entitled "Standard and Poor's Global Interest
               Rate and Currency Swap Counterparty Rating Criteria Expanded"
               publication dated 17 December 2003;

          (b)  where the credit support is to be provided pursuant to the
               provisions of Part 5(l)(i) or (iii) of the Schedule to this
               Agreement, with respect to a Transferor on a Valuation Date,
               (i) the product of A multiplied by the Transferee's Exposure
               plus (ii) the product of B multiplied by the current aggregate
               notional amount of all outstanding Transactions at that time;
               plus (iii) all Independent Amounts applicable to the Transferor
               (if any) minus (iv) all Independent Amounts applicable to the
               Transferee (if any) minus (v) the Transferor's Threshold;
               provided however, that the Credit Support Amount

                                      18
<PAGE>

               will be deemed to be zero whenever the calculation of Credit
               Support Amount yields a number less than zero, where "A" and
               "B" shall have the meanings given to them in Appendix C hereto;
               and

          (c)  where the credit support is to be provided pursuant to the
               provisions of Part 5(m)(i), (ii) or (iv) of the Schedule to
               this Agreement, with respect to a Transferor on a Valuation
               Date, (i) the Transferee's Exposure plus (ii) the applicable
               volatility cushion at that time determined by reference to the
               table set out in Appendix D hereto or such other data as may be
               provided by Fitch at that time multiplied by 105% (and for such
               purpose calculating the relevant weighted average life assuming
               a zero prepayment rate and zero default rate in relation to the
               Mortgages beneficially owned by the Issuer) multiplied by the
               aggregate notional amount of all outstanding Transactions at
               that time; plus (iii) all Independent Amounts applicable to the
               Transferor (if any) minus (iv) all Independent Amounts
               applicable to the Transferee (if any) minus (v) the
               Transferor'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.

     (vi) Transfer Timing.

          (a)  The final paragraph of Paragraph 3(a) shall be deleted and
               replaced with the following:

                    "Subject to Paragraph 4, and unless otherwise specified,
                    any transfer of Eligible Credit Support or Equivalent
                    Credit Support (whether by the Transferor pursuant to
                    Paragraph 2(a) or by the Transferee pursuant to Paragraph
                    2(b)) shall be made not later than the close of business
                    on the Settlement Day."

          (b)  The definition of Settlement Day shall be deleted and replaced
               with the following:

                    "Settlement Day" means the next Local Business Day after
                    the Demand Date

          (c)  For the purposes of this Paragraph 11(h)(i):

                    "Demand Date" means, with respect to a transfer by a
                    party:

                    (i)  in the case of a transfer pursuant to Paragraph 2,
                         Paragraph 3 (other than a transfer pursuant to
                         Paragraph 3(c)(ii)(A)) or Paragraph 4(a)(2), the
                         relevant Valuation Date. For the avoidance of doubt,
                         for the purposes of Paragraph 2 and Paragraph
                         4(a)(2), the Transferor will be deemed to receive
                         notice of the demand by the Transferee to make a
                         transfer of Eligible Credit Support;

                    (ii) in the case of a transfer pursuant to Paragraph
                         3(c)(ii)(A), the date on which the Transferee has
                         given its consent to the proposed exchange; and

                   (iii) in the case of a transfer pursuant to Paragraph
                         5(c)(i), the Distributions Date.

                                      19
<PAGE>

                    (vii) Early Termination.

                          The heading for Paragraph 6 shall be deleted and
                          replaced with "Early Termination" and the following
                          shall be added after the word "Default" in the
                          first line of Paragraph 6, "or a Termination Event
                          in relation to all (but not less than all)
                          Transactions".

                   (viii) Costs of Transfer on Exchange.

          Notwithstanding Paragraph 8, the Transferor will be responsible for,
          and will reimburse the Transferee for, all costs and expenses
          (including any stamp, transfer or similar Transaction tax or duty
          payable on any transfer that it is required to make under this
          Annex) in connection with performing both its and the Transferee's
          obligations under this Annex, including but not limited to those
          involved in the transfer of Eligible Credit Support or Equivalent
          Credit Support either from the Transferor to the Transferee or from
          the Transferee to the Transferor hereto.

                                      20
<PAGE>

                                  APPENDIX A

                          COLLATERALISED TRANSACTIONS

The following Transaction is a Collateralised Transaction,

either the cross-currency rate swap Transaction, or the rate swap Transaction,
as applicable, between Party A and Party B as evidenced by the Confirmation
(as defined in the ISDA Master Agreement).

                                      21
<PAGE>

                                  APPENDIX B

Volatility Buffer for Issuer Notes rated 'AA-' or higher by S&P, where the
Collateralised Transaction is a USD/GBP cross currency swap transaction

<TABLE>
<CAPTION>

---------------------------- ---------------------------- ---------------------------- ---------------------------
Counterparty rating          Maturities up to 5 years     Maturities up to 10          Maturities up to 30
                             (%)                          years (%)                    years (%)
---------------------------- ---------------------------- ---------------------------- ---------------------------
<S>                          <C>                          <C>                          <C>
A-1                          6.00                         7.00                         7.50
A-2                          9.00                         11.25                        13.25
A-3                          11.00                        15.50                        18.25
BB+ or lower                 15.25                        21.00                        26.50
---------------------------- ---------------------------- ---------------------------- ---------------------------
Volatility Buffer for Issuer Notes rated 'AA-' or higher by S&P, where the
Collateralised Transaction is a EUR/GBP cross currency swap transaction

---------------------------- ---------------------------- ---------------------------- ---------------------------
Counterparty rating          Maturities up to 5 years     Maturities up to 10          Maturities up to 30
                             (%)                          years (%)                    years (%)
---------------------------- ---------------------------- ---------------------------- ---------------------------
A-1                          4.50                         5.50                         6.25
A-2                          6.50                         7.75                         9.25
A-3                          7.75                         9.50                         12.00
BB+ or lower                 10.50                        13.00                        15.00
---------------------------- ---------------------------- ---------------------------- ---------------------------
Volatility Buffer for Issuer Notes rated 'A' or 'A+' by S&P, where the
Collateralised Transaction is a USD/GBP cross currency swap transaction

---------------------------- ---------------------------- ---------------------------- ---------------------------
Counterparty rating          Maturities up to 5 years     Maturities up to 10          Maturities up to 30
                             (%)                          years (%)                    years (%)
---------------------------- ---------------------------- ---------------------------- ---------------------------
A-2                          8.00                         9.25                         10.75
A-3                          9.50                         12.00                        14.50
BB+ or lower                 12.75                        16.50                        20.75
------------------------------ --------------------------- --------------------------- ---------------------------
Volatility Buffer for Issuer Notes rated 'A' or 'A+', by S&P where the
Collateralised Transaction is a EUR/GBP cross currency swap transaction

---------------------------- ---------------------------- ---------------------------- ---------------------------
Counterparty rating          Maturities up to 5 years     Maturities up to 10          Maturities up to 30
                             (%)                          years (%)                    years (%)
---------------------------- ---------------------------- ---------------------------- ---------------------------
A-2                          5.75                         7.00                         8.25
A-3                          7.00                         8.00                         10.00
BB+ or lower                 9.00                         11.25                        13.75
------------------------------ --------------------------- --------------------------- ---------------------------

</TABLE>

                                      22
<PAGE>

                                  APPENDIX C

(i)   In the case of an Initial Moody's Note Downgrade Event, where the
      Transferee's Exposure is a positive number, "A" means 102% or where the
      Transferee's Exposure is equal to zero or is a negative number, "A" means
      98% and "B" means 1.6%;

(ii)  In the case of a Subsequent Moody's Note Downgrade Event, where the
      Transferee's Exposure is a positive number, "A" means equal to or greater
      than 102% or where the Transferee's Exposure is equal to zero or is a
      negative number, "A" means equal to or greater than 98% and "B" means
      equal to or greater than 3.7%; and

(iii) In all other cases, , "A" means 0% and "B" means 0%.

                                      23
<PAGE>

                                  APPENDIX D

                       Volatility Cushion for all Notes

Where the Collateralised Transaction is a USD/GBP cross currency swap
transaction

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
                                                Weighted Average Life (Years)
---------------------------------------------------------------------------------------------------------------------
<S>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
Notes'      1      2      3      4      5      6      7      8      9      10     11     12     13     14     >=15
rating
AA- or      1.1    2.4    3.8    5.1    6.2    7.3    8.5    9.6    10.7   11.8   12.8   13.9   14.9   15.9   16.8
better
A+ or A     0.8    1.7    2.7    3.6    4.4    5.2    6.0    6.8    7.6    8.4    9.1    9.8    10.6   11.2   11.9
A-/BBB+     0.7    1.5    2.3    3.1    3.9    4.5    5.2    5.9    6.6    7.3    7.9    8.6    9.2    9.8    10.4
---------------------------------------------------------------------------------------------------------------------

Where the Collateralised Transaction is a EUR/GBP cross currency swap transaction

---------------------------------------------------------------------------------------------------------------------
                                                Weighted Average Life (Years)
---------------------------------------------------------------------------------------------------------------------
Notes'      1      2      3      4      5      6      7      8      9      10     11     12     13     14     >=15
rating
AA- or      0.9    2.1    3.2    4.2    5.0    5.8    6.7    7.5    8.4    9.2    10.00  10.8   11.6   12.4   13.2
better
A+ or A     0.6    1.5    2.3    3.0    3.6    4.1    4.7    5.3    5.9    6.5    7.1    7.7    8.3    8.8    9.4
A-/BBB+     0.6    1.3    2.0    2.6    3.1    3.6    4.1    4.6    5.2    5.7    6.2    6.7    7.2    7.7    8.2
---------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

From:             ABN AMRO Bank N.V., London Branch
                  250 Bishopsgate
                  London
                  EC2M 4AA

Attention:        Jennie Gilbertson/Peter Wightwick/Paul James Wood/Miriam
                  Corcoran

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                               24 January 2007

Dear Sirs,

      Re:   Interest Rate Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the " Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Trade Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
and signed for the purposes of identification by Sidley Austin (now known as
Sidley Austin (UK) LLP) and ABN AMRO Bank N.V., London Branch on 6 March 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley

                                      1
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen & Overy
LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and
the Issuer Master Definitions Schedule signed for the purposes of
identification by Sidley Austin Brown & Wood (now known as Sidley Austin (UK)
LLP) and Allen & Overy LLP on 19 January 2005 (as the same may be amended,
restated, varied or supplemented from time to time with the consent of the
parties hereto). The Issuer Master Definitions Schedule shall prevail to the
extent that it conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc GBP Series 2007-1 Class 6A1
Notes due 2054. 1 The terms of the particular Swap Transaction to which this
Confirmation relates are as follows:

<TABLE>
<CAPTION>
<S>                                                              <C>
Party A:                                                         ABN AMRO Bank N.V., London Branch

Party B:                                                         Granite Master Issuer plc

Trade Date:                                                      19 January 2007.

Effective Date:                                                  24 January 2007.

Termination Date:                                                The earlier to occur of (i) the Payment Date
                                                                 falling in December 2013 and (ii) a
                                                                 Pass-Through Trigger Event.

A.       Fixed Payments

Fixed Amounts for Party A:

Fixed Rate Payer:                                                Party A

Party A Calculation Amount:                                      For any Calculation Period, an amount in GBP
                                                                 equal to the Principal Amount Outstanding of
                                                                 the Issuer Notes on the first day of such
                                                                 Calculation Period after any reduction of such
                                                                 Principal Amount Outstanding on such date or,
                                                                 if such date is not a Business Day, the

                                      2
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

                                                                 next following Business Day (in accordance with
                                                                 Condition 6).

Party A Payment Dates:                                           Each Party A Period End Date.  If the relevant
                                                                 Party A Period End Date is not a Business Day
                                                                 then the Party A Payment Date shall be the
                                                                 next following Business Day.  On the Party A
                                                                 Payment Date falling in December, 2007 the
                                                                 Fixed Amount shall be GBP 25,315,050.00

Fixed Rate:                                                      5.60 per cent. per annum

Party A Fixed Rate Day Count Fraction:                           Actual / Actual ISMA (as defined in the
                                                                 Conditions)

Party A Period End Dates:                                        Each Note Payment Date.  A Party A Period End
                                                                 Date shall not be subject to adjustment in
                                                                 accordance with any Business Day Convention.

B.       Floating Amounts for Party B:

Floating Rate Payer:                                             Party B

Party B Calculation Amount:                                      As at any Party B Payment Date, an amount in
                                                                 GBP equal to the Principal Amount Outstanding
                                                                 of the Issuer Notes on (x) the immediately
                                                                 preceding Note Payment Date (as defined in the
                                                                 Conditions) after any reduction of such
                                                                 Principal Amount Outstanding on such date or
                                                                 if such date is not a Business Day, the next
                                                                 following Business Day (in accordance with
                                                                 Condition 6) or (y) the Effective Date (being
                                                                 GBP 500,000,000 on such date), with respect to
                                                                 each Party B Payment Date falling on or prior
                                                                 to the first Note Payment Date.

                                                                 Provided that if the Party B Payment Date in
                                                                 December of any year falls immediately
                                                                 following the Note Payment Date in such month,
                                                                 the

                                                       3
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

                                                                 Party B Calculation Amount shall be
                                                                 calculation by reference to the Note Payment
                                                                 Date falling in December of the prior year or
                                                                 , if such date is not a Business Day, the next
                                                                 following Business Day (in accordance with
                                                                 Condition 6).

Party B Payment Dates:                                           The 20th day of each calendar month in each
                                                                 year during the Term from, and including,
                                                                 February 2007 to, but excluding, the
                                                                 Termination Date, subject to adjustment in
                                                                 accordance with the Following Business Day
                                                                 Convention and the Termination Date.

Floating Rate Option:                                            GBP-LIBOR-BBA.

Designated Maturity:                                             3 months; except in respect of the initial
                                                                 Calculation Period for which Linear
                                                                 Interpolation is applicable and in respect of
                                                                 which the Linear Interpolation shall be
                                                                 applied by reference to the 1 month and 2
                                                                 month rates.

Spread B for the Party B Calculation Periods up to and           0.07769 per cent. per annum
including the Calculation Period ending on but excluding
the Termination Date:

Party B Floating Rate Day Count Fraction:                        Actual/365(Fixed)

Reset Dates:                                                     The first day of each Calculation Period;
                                                                 provided however, that in respect of every
                                                                 Party B Calculation Period (other than the
                                                                 first Calculation Period) that does not start
                                                                 on a Quarterly Reset Date, the Floating Rate
                                                                 in effect for such Calculation Period shall be
                                                                 the Floating Rate for the immediately
                                                                 preceding Party B Calculation Period.

Quarterly Reset Date                                             Each Monthly Payment Date (as defined in the
                                                                 Conditions) scheduled to fall in March, June,
                                                                 September and

                                                       4
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

                                                                 December starting in March 2007.

Initial Payment                                                  On the Effective Date Party A will pay Party B
                                                                 GBP 300,000.

Calculation Agent:                                               Party A

Business Days:                                                   London

C. Account Details:

Payments to Party A:

Account for Payments in GBP:                                     Agent BIC Code:  ABNAGB2L
                                                                 Beneficiary BIC Code:  ABNAGB2L
                                                                 Favour:   ABN AMRO Bank London
                                                                 Direct Chaps Code: 40 50 30
                                                                 Ref: DCM
                                                                 IBAN: GB79 ABNA 4050 3000 1040 78

Payments to Party B:

Account for Payments in GBP:                                     Citibank, N.A., London
                                                                 A/C No. 10860255
                                                                 Sort Code 18-50-08
                                                                 Ref: GATS/Granite Master Issuer plc.

D.       Notice Details:

Party A:                                                         ABN AMRO Bank N.V., London Branch

Address:                                                         250 Bishopsgate
                                                                 London
                                                                 EC2M 4AA
Facsimile Number:                                                +44 (0)20 7678 3666

Attention:                                                       Jennie Gilbertson/Peter Wightwick/Paul James
                                                                 Wood/Miriam Corcoran

Party B:                                                         Granite Master Issuer plc

                                                       5
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

Address:                                                         Fifth Floor
                                                                 100 Wood Street
                                                                 London
                                                                 EC2V 7EX

With a copy to:                                                  Northern Rock plc
                                                                 Northern Rock House
                                                                 Gosforth
                                                                 Newcastle upon Tyne
                                                                 NE3 4PL

Facsimile Number:                                                +44 (0)191 279 4629

Attention:                                                       Andy McLean / Claire Blackett

With a copy to the                                               The Bank of New York
Issuer Security Trustee:

Address:                                                         One Canada Square
                                                                 48th Floor
                                                                 London
                                                                 E14 5AL

Facsimile Number:                                                +44 (0)20 7964 6399

E. Offices:                                                      The Office of Party A is London.
</TABLE>

F.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      incorporated into this Confirmation and the square brackets are
      accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are not incorporated into this
      Confirmation and the square brackets and words therein are accordingly
      deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are not incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                       6
<PAGE>

                   ABN AMRO Bank- Interest Rate Confirmation (Class 6A1 Notes)
                                                                Execution Copy

Yours faithfully

ABN AMRO BANK N.V., LONDON BRANCH

By:  /s/ Kenneth A. Nicoll
     ----------------------------
Name:  Kenneth A. Nicoll
Title: Director

By:

Name:
Title:

Confirmed as of the date first written:

GRANITE MASTER ISSUER PLC

By:  /s/ Ian Bowden
     ------------------------------
Name:  Ian Bowden
Title: Representing L.D.C.
       Securitisation Director No. 1 Limited
       Director

                                       7Exhibit 10.2

                            Agreed Form Cover Sheet

                             dated 23 January 2007

attaching:

1.    the form of 1992 ISDA Master Agreement (Multicurrency - Cross Border);

2.    the Agreed Form Schedule thereto (Sidley Austin document number:
      1494615v2);

3.    the form of 1995 ISDA Credit and Support Annex (Bilateral Form -
      Transfer) (the "CSA pre-printed form") forming part of the Schedule; and

4.    the Agreed Form Paragraph 11 to the CSA pre-printed form (Sidley Austin
      document number: 1496828v1) to the CSA pre-printed form,

between

(1)   BARCLAYS BANK PLC; and

(2)   GRANITE MASTER ISSUER plc,

signed for the purposes of identification by:

/s/ Jonathan Martin
-------------------------------------------------

Jonathan Martin
Associate Director -
Legal UK & Europe
Authorised to Sign

on 23 January 2007; and

/s/ Sidley Austin (UK) LLP
-------------------------------------------------

SIDLEY AUSTIN (UK) LLP

on 23 January 2007.

<PAGE>

(Multicurrency - Cross Border)

                                    ISDA,
                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

        dated as of   the Trade Date specified in the Confirmation
                      ------------------------------------------------

                  BARCLAYS BANK PLC and GRANITE MASTER ISSUER plc
         --------------------------     ---------------------------

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>

(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 on the 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 (11) a Change in Tax Law.

                                      2
<PAGE>

      (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
<PAGE>

(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 1 1, 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
<PAGE>

organised, managed and controlled, or considered to have its 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, that 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
<PAGE>

      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
<PAGE>

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 lndemnifiable 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 any "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
<PAGE>

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)(l), (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)(l) 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
<PAGE>

      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
      specifLing 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 Market 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
<PAGE>

            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(e)(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 (11) 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
<PAGE>

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 judgment 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 the 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 tbe purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

                                      11

<PAGE>

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 he entered into as soon as practicable
      and may he 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
<PAGE>

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 any time 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 l(3) 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
<PAGE>

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 in 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 fiom 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 hnding the relevant amount plus 1% per annum.

                                      14
<PAGE>

"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 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)(l) 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 11. 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
<PAGE>

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 quotations having the highest and 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 Transaction 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-of" 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 meanings specified in the Schedule.

                                      16
<PAGE>

"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.

"Specialed 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) any combination of 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 ofany
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:OO 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
<PAGE>

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.

BARCLAYS BANK PLC                          GRANITE MASTER ISSUER plc
----------------------------------        --------------------------------
     (Name of Party)                           (Name of Party)

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

                                      18

<PAGE>

                                              Barclays/Granite Master Issuer plc
                          Cross Currency/Interest Rate Agreed Form ISDA Schedule
                                                  Agreed Form Version: 23.01.07.

                              Agreed Form Schedule
(Multicurrency - Cross Border)

                                    SCHEDULE

                                     to the

                                    1992 ISDA

                                MASTER AGREEMENT

            dated as of the Trade Date specified in the Confirmation,

between

(1)   BARCLAYS BANK PLC ("Party A"); and

(2)   GRANITE MASTER ISSUER plc ("Party B").

Part 1. Termination Provisions.

(a)   "Specified Entity" means in relation to Party A for the purpose of:-

      Section 5(a)(v), none

      Section 5(a)(vi), none

      Section 5(a)(vii), none

      Section 5(b)(iv), none

      and in relation to Party B for the purpose of:-

      Section 5(a)(v), none

      Section 5(a)(vi), none

      Section 5(a)(vii), none

      Section 5(b)(iv), none

(b)   "Specified Transaction" will have the meaning specified in Section 14.

                                       1
<PAGE>

(c)   The "Cross Default" provisions of Section 5(a)(vi) will apply to Party A
      and will not apply to Party B.

      "Specified Indebtedness" will have the meaning specified in Section 14 of
      this Agreement, other than any obligations in respect of deposits received
      at any time in the ordinary course of Party A's banking business.

      "Threshold Amount" means, with respect to Party A, 2 per cent. of the
      shareholders' equity of Party A.

      For the purposes of the above, shareholders' equity shall be determined by
      reference to Party A's most recent consolidated balance sheet. Such
      balance sheet shall be prepared in accordance with accounting principles
      that are generally accepted in Party A's country of organization.

(d)   The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will apply
      to Party A and will not apply to Party B.

(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)   Market Quotation will apply.

      (ii)  The Second Method will apply.

(g)   "Termination Currency" means Sterling.

(h)   Additional Termination Event will apply. The events which constitute
      Additional Termination Events are set forth in Part 5(f), Part 5(k)(iii),
      Part 5(l)(iv) and Part 5(m)(v) of this Agreement.

                                      2
<PAGE>

Part 2. Tax Representations

(a)   Payer Representations. For the purpose of Section 3(e) of this Agreement,
      Party A and Party B will each make the following representation:

      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)(ii) or 6(e) of this
      Agreement) to be made by it to the other party under this Agreement. In
      making this representation, it 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 Representations. For the purposes of Section 3(f) of the Agreement,
      neither Party A nor Party B make any representation.

                                      3
<PAGE>

Part 3. Agreement to Deliver Documents

      For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party
      agrees to deliver the following documents, as applicable:-

(a)   Tax forms, documents or certificates to be delivered are:-

<TABLE>
<CAPTION>
Party required to deliver document   Form/Document/ Certificate                    Date by which to be delivered
<S>                                  <C>                                           <C>
Party B                              An executed United States Internal Revenue    On signing of this Agreement
                                     Service Form W8-BEN signed by Party B
                                     certifying at Part II thereof that Party B
                                     is a resident of the United Kingdom within
                                     the meaning of the income tax treaty
                                     between the United States and the United
                                     Kingdom and accompanied by a statement
                                     indicating that any income from notional
                                     principal contracts to which Party B is
                                     party is not expected to result in income
                                     effectively connected with the conduct of a
                                     trade or business in the United States.
</TABLE>

(b)   Other documents to be delivered are:-

<TABLE>
<CAPTION>
Party required                       Form/Document/                                Date by which           Covered by
to deliver                           Certificate                                   to be delivered         Section 3(d)
document                                                                                                   Representation
<S>                                  <C>                                           <C>                     <C>
Party A and                          Appropriate evidence of its signatory's       On signing of this      Yes
Party B                              authority                                     Agreement

Party B                              Certified copy of                             On signing of this      Yes
                                     board resolution                              Agreement

                                      4
<PAGE>

Party A                              Legal opinion of counsel (in form and         On signing of this      No
                                     substance satisfactory to Party B)            Agreement

Party B                              Legal opinion of counsel (in form and         On signing of this      No
                                     substance satisfactory to Party A)            Agreement

Party A                              An executed original of the Credit Support    On signing of this      No
                                     Document listed in Part 4(f) below            Agreement
</TABLE>

                                      5
<PAGE>

Part 4. Miscellaneous

(a)      Addresses for Notices.  For the purpose of Section 12(a) of this
         Agreement:-

         Address for notices or communications to Party A:-

         Address:            5, The North Colonnade
                             Canary Wharf
                             London E14 4BB

         Attention:          Derivatives Director, Legal Division

         Facsimile No:       +44 207 773 4932

         Address for notices or communications to Party B:-

         Address:            Granite Master Issuer plc
                             Fifth Floor
                             100 Wood Street
                             London
                             EC2V 7EX

         With a copy to:     Northern Rock plc
                             Northern Rock House
                             Gosforth
                             Newcastle upon Tyne
                             NE3 4PL

         Attention:          Andy McClean

         Facsimile No.:      +44 (0)191 279 4929

         With a copy to the Note Trustee:-

         Address:            The Bank of New York
                             One Canada Square
                             48th Floor
                             London
                             E14 5AL

         Attention:          Corporate Trust (Global Structured Finance)

         Facsimile No.:      +44 (0)20 7964 6399

(b)      Process Agent.  For the purpose of Section 13(c) of this Agreement:-

         Party A appoints as its Process Agent:  None.

                                      6
<PAGE>

      Party B appoints as its Process Agent: None.

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

(d)   Multibranch Party. For the purpose of Section 10(c) of this Agreement:-

      Party A is a Multibranch Party and will act through its London branch and
      New York branch.

      Party B is not a Multibranch Party.

(e)   Calculation Agent. The Calculation Agent shall be as specified in the
      Confirmation.

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

      In respect of Party A: the 1995 Credit Support Annex (Bilateral Form -
      Transfer) between Party A and Party B dated as of the Trade Date specified
      in the Confirmation (the "Credit Support Annex").

      In respect of Party B: none.

(g)   Credit Support Provider.

      Credit Support Provider means, in relation to Party A, none.

      Credit Support Provider means, in relation to Party B, none.

(h)   Governing Law. This Agreement will be governed by and construed in
      accordance with English law.

(i)   Netting of Payments. Sub-paragraph (ii) of Section 2(c) of this Agreement
      will apply to Transactions entered into under this Agreement unless
      otherwise specified in a Confirmation.

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

                                      7
<PAGE>

Part 5. Other Provisions

(a)   Definitions and Interpretation

      Capitalised terms used in this Agreement shall, except where the context
      otherwise requires and save where otherwise defined in this Agreement,
      bear the meanings given to them in the Programme Master Definitions
      Schedule and the Issuer Master Definitions Schedule (each as described in
      the Confirmation). Such Issuer Master Definitions Schedule shall prevail
      to the extent that it conflicts with such Programme Master Definitions
      Schedule.

      For the purposes of this Agreement:

      "Issuer Notes" has the meaning given to such term in the Confirmation.

(b)   No Set-Off

      (i)   All payments under this Agreement shall be made without set-off or
            counterclaim, except as expressly provided for in Section 6. For the
            avoidance of doubt, Section 2(c) shall not be affected by this
            provision.

      (ii)  Section 6(e) shall be amended by the deletion of the following
            sentence: "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."

(c)   Security Interest

      Notwithstanding Section 7, Party A hereby agrees and consents to the
      assignment by way of security by Party B of its interests under this
      Agreement (without prejudice to, and after giving effect to, any
      contractual netting provision contained in this Agreement) to the Issuer
      Security Trustee (or any successor thereto) pursuant to and in accordance
      with the terms and conditions of the Issuer Deed of Charge and
      acknowledges notice of such assignment.

(d)   Disapplication of certain Events of Default

      Section 5(a)(ii), Section 5(a)(iii), Section 5(a)(iv), Section 5(a)(v),
      Section 5(a)(vii)(2),(5),(6),(7) and (9) and Section 5(a)(viii) will not
      apply in respect of Party B.

      Section 5(a)(vii)(8) will not apply to Party B to the extent that it
      applies to Section 5(a)(vii)(2),(5),(6) and (7).

      Sections 5(a)(vii)(3) and 5(a)(vii)(4) are deleted in their entirety and
      replaced with the following:

      "(3) makes a general assignment, arrangement or composition with or for
      the benefit of its creditors, provided that where such general assignment,
      arrangement and/or composition is contemplated by the Transaction
      Documents, this Section 5(a)(vii)(3)

                                      8
<PAGE>

      shall not apply to Party B; (4) institutes or has instituted against it a
      proceeding seeking a judgment of insolvency or bankruptcy or a petition is
      presented for its winding-up or liquidation or the making of an
      administration order against it and such proceeding or petition results in
      a judgment of insolvency or bankruptcy or the making of an order for its
      winding-up, administration or liquidation."

(e)   Disapplication of certain Termination Events

      The "Tax Event" and "Tax Event Upon Merger" provisions of Sections
      5(b)(ii) and 5(b)(iii) will not apply to Party A or to Party B.

(f)   Additional Termination Events

      (A)   Party B Additional Termination Events:

      The following shall each constitute an Additional Termination Event with
      respect to Party B:

      (i)   Note Enforcement Notice. The Note Trustee serves an Issuer
            Enforcement Notice on Party B in accordance with Condition 9 (Events
            of Default) of the Issuer Notes.

      (ii)  Early Redemption. The Issuer Notes are redeemed in full in
            accordance with Condition 5(E) or (F) at any time prior to their
            Final Maturity Date.

      In the case of (i) and (ii) above, Party B shall be the sole Affected
      Party.

      (B)   Party A Additional Termination Event:

      The following shall constitute an Additional Termination Event with
      respect to Party A:

      Without prejudice to any other remedies available to Party B under this
      Agreement or otherwise, it shall be an Additional Termination Event under
      this Agreement if the Additional Tax Representation in Part 5(n)(iii)
      proves to have been incorrect or misleading in any material respect with
      respect to one or more Transactions when made or repeated or deemed to
      have been made or repeated. The sole Affected Party shall be Party A.

      (C)   Withholding Tax Event:

            The following shall constitute an Additional Termination 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 (l) be required to make a payment from which an amount is
      required to be

                                      9
<PAGE>

      deducted or withheld for or on account of United Kingdom Tax or (2)
      receive a payment from which an amount is required to be deducted or
      withheld for or on account of United Kingdom Tax (except in each case in
      respect of interest under Section 2(e), 6(d)(ii) or 6(e)). In respect of
      such Additional Termination Event, all Transactions affected by the
      occurrence of such Additional Termination Event will be Affected
      Transactions. For the purposes of the foregoing, United Kingdom Tax means
      any Tax imposed or assessed by or within the United Kingdom or any
      authority therein or thereof having power to tax.

            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 60 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 Additional 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 60 day period,
      whereupon the other party may effect a transfer to any person or entity
      within 70 days after the notice is given under Section 6(b)(i) so that
      such Additional Termination Event ceases to exist.

            Any such transfer by a party under this Part 5(f)(C) will be subject
      to and conditional upon the prior written consent of the other party (the
      "Consenting Party"), which consent will not be unreasonably withheld. Such
      consent will be considered "reasonably withheld" if such other party's
      policies in effect at such time would prevent it from entering into a
      novation of a transaction with the transferee on the terms proposed. The
      Consenting Party shall provide the transferring party under this Part
      5(f)(c) any such assistance and cooperation as may reasonably be required
      by the transferring party to effect such a transfer.

(g)   Northern Rock plc as Party B's Agent

      Party B hereby declares that pursuant to the Issuer Cash Management
      Agreement it has appointed Northern Rock plc to act as its agent for the
      purpose, inter alia, of the operation of this Agreement and dealing with
      payments hereunder. Accordingly, unless and until written notice is
      received by Party A from the Note Trustee that such appointment has been
      terminated, Party A shall be entitled to treat all communications and acts
      relating to this Agreement received from or carried out by Northern Rock
      plc as agent for Party B under the Issuer Cash Management Agreement as
      being those of Party B, and Party B hereby agrees to ratify and confirm
      the same.

(h)   Security, Enforcement and Limited Recourse

      (i)   Party A confirms to Party B that it is, or will be, by the date
            hereof, bound by the terms of the Issuer Deed of Charge and, in
            particular, confirms that: (i) save as otherwise expressly set out
            in the Issuer Deed of Charge, no sum shall be payable by or on
            behalf of Party B to it except in accordance with the Issuer
            Priority of Payments as set out in the Issuer Deed of Charge (as the
            same may be amended,

                                      10
<PAGE>

            restated, supplemented and/or otherwise modified from time to time);
            and (ii) it will not take any steps for the winding up, dissolution
            or reorganization or for the appointment of a receiver,
            administrator, administrative receiver, trustee, liquidator,
            sequestrator or similar officer of Party B or of any or all of its
            revenues and assets nor participate in any ex parte proceedings nor
            seek to enforce any judgment against Party B except as provided in
            the Issuer Deed of Charge.

      (ii)  In relation to all sums due and payable by Party B to Party A, Party
            A agrees that it shall have recourse only to sums available to Party
            B for the purpose of making payments to Party A in accordance with
            the relevant Issuer Priority of Payments and the Issuer Deed of
            Charge.

      (iii) If, on any payment date under a Transaction, an amount is payable by
            Party B to Party A and Party B does not pay such amount in full on
            such date (after the application of Section 2(c) to such
            Transaction) because of the limitation contained in Part 5(h)(i)
            above, then: (A) payment by Party B of the shortfall (and the
            corresponding payment obligation of Party A with respect to such
            shortfall (being the full amount Party A would otherwise owe on such
            date less the actual amount payable by Party A determined in
            accordance with Part 5(h)(iii)(C) below)) will not then fall due,
            [but will instead be deferred until the first Payment Date (as
            defined in the Confirmation) thereafter on which sufficient funds
            are available (subject to the limitation in Part 5(h)(i) above)](1),
            (B) failure by Party B to make the full payment under such
            Transaction (after the application of Section 2(c) to such
            Transaction) shall not constitute an Event of Default for the
            purpose of Section 5(a)(i), and (C) the obligation of Party A to
            make payment to Party B, in respect of the same Transaction, on such
            date, will be reduced so that Party A will be obligated to pay the
            Equivalent Percentage of the amount it would otherwise owe under
            that Transaction. "Equivalent Percentage" means the percentage
            obtained by dividing the amount paid by Party B by the amount it
            would have paid on the relevant date absent such limitation
            multiplied by one hundred provided that, in respect of any
            Transaction where the Confirmation provides that Party B makes
            payments on a monthly basis and Party A makes payments on a
            quarterly basis, the Equivalent Percentage shall be adjusted by the
            Calculation Agent so as to reflect all of the amounts paid by Party
            B during the relevant quarterly period applicable to Party A's
            quarterly payment.

      (iv)  If an Early Termination Date results from an Event of Default or a
            Termination Event, any amount payable (the payment of which was
            deferred or not paid in the circumstances described under Part
            5(h)(iii) above by Party A or by Party B, as the case may be, under
            this Agreement) will be deemed to be Unpaid Amounts

------------------------
(1)   The words in square brackets will not be incorporated into the
      Confirmation where the Class of the Issuer Notes referred to therein are
      rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
      equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      11
<PAGE>

            owing to Party B or, as the case may be, owing to Party A on the
            Early Termination Date.

      (v)   Following the calculation thereof, and in any event no later than
            two Local Business Days prior to any relevant Payment Date (as
            defined in the Confirmation), Party B agrees to notify Party A of
            the amount of any shortfall[, the payment of which by Party B is
            deferred in accordance with Part 5(h)(iii) above)](2).

(i)   Scope of Agreement

      It is hereby understood and agreed that the provisions of this Agreement
      shall only apply to the Transaction entered into between Party A and Party
      B on the Trade Date specified in the only Confirmation (other than the
      Credit Support Annex) that supplements, forms part of, and is subject to
      this Agreement (and, for the avoidance of doubt, all references in this
      Agreement to "Confirmation" shall be to such Confirmation or, as the
      context requires, the Credit Support Annex) and that no other Transaction
      may be entered into pursuant hereto except in accordance with sub-Parts
      5(k)(i)(A), 5(k)(ii)(B), 5(l)(i)(D), 5(l)(iii), 5(m)(i)(A), 5(m)(ii)(A) or
      5(m)(iv), or where the Rating Agencies have confirmed in writing that the
      then current ratings of the Issuer Notes would not be adversely affected
      by such other Transaction.

(j)   Authorised Person

      For the purposes of Section 3 of this Agreement, Party A represents to
      Party B (which representation will be deemed to be repeated by Party A on
      each date on which a Transaction is entered into and until all outstanding
      payment and delivery obligations of Party A, from time to time, under this
      Agreement have been satisfied in full) that it is an authorised person for
      the purposes of the Financial Services and Markets Act 2000 (or any
      successor to it).

(k)   Ratings Downgrade of Party A - Standard & Poor's Rating Services, a
      division of The McGraw-Hill Companies Inc. ("S&P")

      (i)   Initial S&P Note Downgrade Event

      In the event that an Initial S&P Note Downgrade Event occurs, then Party A
      shall, within 30 days of the occurrence of such Initial S&P Note Downgrade
      Event, at its own cost, either:-

-------------------
(2)   The words in square brackets will not be incorporated into the
      Confirmation where the Class of the Issuer Notes referred to therein are
      rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
      equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      12
<PAGE>

      (A)   provide collateral in the form of cash and/or securities or both in
            support of its obligations under this Agreement in accordance with
            the provisions of the Credit Support Annex; or

      (B)   transfer all of its rights and obligations with respect to this
            Agreement to a replacement third party whose short-term, unsecured
            and unsubordinated debt obligations are rated at least as high as
            "A-1+" (or its equivalent) by S&P or such other rating as is
            commensurate with the rating assigned to the Issuer Notes by S&P
            from time to time; or

      (C)   procure another person to become co-obligor or guarantor in respect
            of the obligations of Party A under this Agreement whose short-term,
            unsecured and unsubordinated debt obligations are rated at least as
            high as "A-1+" (or its equivalent) by S&P or such other rating as is
            commensurate with the rating assigned to the Issuer Notes by S&P
            from time to time; or

      (D)   take such other action as Party A may agree with S&P as will result
            in the rating of the Issuer Notes then outstanding following the
            taking of such action being rated no lower than the rating of the
            Issuer Notes immediately prior to such downgrade.

      If any of sub-paragraphs (k)(i)(B), (k)(i)(C) or (k)(i)(D) above are
      satisfied at any time, all collateral (or the equivalent thereof, as
      appropriate) transferred by Party A pursuant to sub-paragraph (k)(i)(A)
      above will be transferred back to Party A, and Party A will not be
      required to transfer any additional collateral in respect of such
      particular Initial S&P Note Downgrade Event.

      (ii)  Subsequent S&P Note Downgrade Event

            (A)   Party A shall, within 10 days of the occurrence of a
                  Subsequent S&P Note Downgrade Event, at its own cost and
                  expense, use its best endeavours to take the action set out in
                  sub-paragraph (k)(i)(B), (k)(i)(C) or (k)(i)(D) above; and

            (B)   if, at the time a Subsequent S&P Note Downgrade Event occurs,
                  Party A has provided collateral in accordance with the
                  provisions of the Credit Support Annex pursuant to
                  sub-paragraph (k)(i)(A) above following an Initial S&P Note
                  Downgrade Event, it will continue to provide collateral
                  notwithstanding the occurrence of a Subsequent S&P Note
                  Downgrade Event until such time as the action in sub-paragraph
                  (k)(ii)(A) above has been taken.

      If the action set out in sub-paragraph (k)(ii)(A) above is taken at any
      time, all collateral (or the equivalent thereof, as appropriate)
      transferred by Party A pursuant to sub-paragraph (k)(i)(A) above will be
      transferred back to Party A, and Party A will not be required to transfer
      any additional collateral in respect of such Subsequent S&P Note Downgrade
      Event.

                                      13
<PAGE>

      (iii) Additional Termination Events

      If Party A does not take any of the measures described in sub-paragraphs
      (k)(i) or (k)(ii) above such failure shall not be or give rise to an Event
      of Default but shall constitute an Additional Termination Event with
      respect to Party A and shall be deemed to have occurred on the thirtieth
      day following the Initial S&P Note Downgrade Event or Subsequent S&P Note
      Downgrade Event, as applicable, with Party A as the sole Affected Party.

      However, in the event that Party B were to designate an Early Termination
      Date and there would be a payment due to Party A, Party B may only
      designate such an Early Termination Date in respect of an Additional
      Termination Event under this sub-paragraph (k)(iii) if Party B has found a
      replacement counterparty willing to enter into a new transaction with
      Party B on terms that reflect as closely as reasonably possible (as the
      Note Trustee, on behalf of Party B may, in its absolute discretion,
      determine) the economic, legal and credit terms of the Terminated
      Transaction with Party A.

      (iv)  S&P Definitions

      For the purposes of this Part 5(k):

      an "Initial S&P Note Downgrade Event" will occur where:

            (a)   the short-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor), or any guarantor of Party A's
                  obligations under this Agreement (or its successor), cease to
                  be rated at least as high as "A-1+" (or its equivalent) by
                  S&P, and

            (b)   as a result of such cessation, the then current rating of the
                  Issuer Notes may, in the reasonable opinion of S&P, be
                  downgraded or placed under review for possible downgrade; and

            a "Subsequent Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor), or any guarantor of Party A's
                  obligations under this Agreement (or its successor), cease to
                  be rated at least as high as "BBB-" (or its equivalent) by
                  S&P, and

            (b)   as a result of such cessation, the then current rating of the
                  Issuer Notes may, in the reasonable opinion of S&P, be
                  downgraded or placed under review for possible downgrade.

(l)   Ratings Downgrade of Party A - Moody's Investors Service Limited
      ("Moody's")

      (i)   Initial Moody's Note Downgrade Event

                                      14
<PAGE>

            Within 30 days of the occurrence of an Initial Moody's Note
            Downgrade Event, Party A shall, on a reasonable efforts basis and at
            its own cost, attempt to:

            (A)   transfer all of its rights and obligations with respect to
                  this Agreement to either (x) a replacement third party with
                  the Required Ratings (as defined below) domiciled in the same
                  legal jurisdiction as Party A or Party B or (y) a replacement
                  third party which, as agreed with Moody's, will not adversely
                  affect the ratings of the Issuer Notes; or

            (B)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement.
                  Such co-obligor or guarantor may be either (x) a person with
                  the Required Ratings domiciled in the same legal jurisdiction
                  as Party A or Party B, or (y) a person, who as agreed with
                  Moody's, will not adversely affect the ratings of the Issuer
                  Notes; or

            (C)   take such other action as Moody's shall confirm to Party A
                  will remedy an Initial Moody's Note Downgrade Event; or

            (D)   provide collateral in the form of cash or securities or both,
                  in support of its obligations under this Agreement in
                  accordance with the provisions of the Credit Support Annex.

            If any of sub-paragraphs (l)(i)(A), (l)(i)(B) or (l)(i)(C) above are
            satisfied at any time, all collateral (or the equivalent thereof, as
            appropriate) transferred by Party A pursuant to sub-paragraph
            (l)(i)(D) above will be transferred back to Party A and Party A will
            not be required to transfer any additional collateral as a
            consequence of such particular Initial Moody's Note Downgrade Event.

      (ii)  Subsequent Moody's Note Downgrade Event

            Party A shall, within 30 days of the occurrence of a Subsequent
            Moody's Note Downgrade Event, on a reasonable efforts basis and at
            its own cost, attempt to:

            (A)   transfer all of its rights and obligations with respect to
                  this Agreement to either (x) a replacement third party with
                  the Required Ratings domiciled in the same legal jurisdiction
                  as Party A or Party B, or (y) a replacement third party which,
                  as agreed with Moody's, will not adversely affect the ratings
                  of the Issuer Notes; or

            (B)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement.
                  Such co-obligor or guarantor may be either (x) a person with
                  the Required Ratings domiciled in the same legal jurisdiction
                  as Party A or Party B, or (y) a person, who as agreed with
                  Moody's, will not adversely affect the ratings of the Issuer
                  Notes; or

                                      15
<PAGE>

            (C)   take such other action as Moody's shall confirm to Party A
                  will remedy a Subsequent Moody's Note Downgrade Event.

      (iii) Subsequent Moody's Note Downgrade Event - Collateral Requirements

            Pending compliance with any of sub-paragraphs (l)(ii)(A), (l)(ii)(B)
            or (l)(ii)(C) above, Party A will at its own cost and within 10 days
            of such Subsequent Moody's Note Downgrade Event or 30 days of the
            occurrence of an Initial Moody's Note Downgrade Event, whichever is
            the earlier, provide collateral in the form of cash or securities or
            both, in support of its obligations under this Agreement in
            accordance with the provisions of the Credit Support Annex; provided
            that, if at the time when a Subsequent Moody's Note Downgrade Event
            occurs, Party A has provided collateral pursuant to the Credit
            Support Annex pursuant to sub-paragraph (l)(i)(D) above, it will
            continue to provide collateral notwithstanding the occurrence of a
            Subsequent Moody's Note Downgrade Event.

            If any of sub-paragraphs (l)(ii)(A), (l)(ii)(B) or (l)(ii)(C) above
            are satisfied at any time, all collateral (or the equivalent
            thereof, as appropriate) transferred by Party A pursuant to this
            sub-paragraph (l)(iii) will be transferred back to Party A and Party
            A will not be required to transfer any additional collateral
            (subject always to any collateral which may be required pursuant to
            sub-paragraph (l)(i)(D) above and unless a further Subsequent
            Moody's Note Downgrade Event occurs).

      (iv)  Additional Termination Events and Event of Default

            If Party A does not take the measures described in sub-paragraph
            (l)(i) above such failure shall not be or give rise to an Event of
            Default but shall constitute an Additional Termination Event with
            respect to Party A and shall be deemed to have occurred on the
            thirtieth day following an Initial Moody's Note Downgrade Event with
            Party A as the sole Affected Party.

            If Party A does not take the measures described in sub-paragraph
            (l)(iii) above such failure shall give rise to an Event of Default
            with respect to Party A and shall be deemed to have occurred on the
            tenth day following such Subsequent Moody's Note Downgrade Event
            with Party A as the sole Defaulting Party. Further, it shall
            constitute an Additional Termination Event with respect to Party A
            if, even after satisfying the requirements of sub-paragraph
            (l)(iii), Party A has failed, having applied reasonable efforts, to
            comply with any of sub-paragraphs (l)(ii)(A), (l)(ii)(B) or
            (l)(ii)(C) and such Additional Termination Event shall be deemed to
            have occurred on the thirtieth day following such Subsequent Moody's
            Note Downgrade Event with Party A as the sole Affected Party.

            However, in the event that Party B were to designate an Early
            Termination Date and there would be a payment due to Party A, Party
            B may only designate such an Early Termination Date in respect of an
            Additional Termination Event under this sub-paragraph (l)(iv) if
            Party B has found a replacement counterparty willing to enter into a
            new transaction with Party B on terms that reflect as closely as

                                      16
<PAGE>

            reasonably possible (as the Note Trustee, on behalf of Party B, may,
            in its absolute discretion, determine) the economic, legal and
            credit terms of the Terminated Transactions with Party A.

      (v)   Mark-to-Market valuation

            In relation to paragraphs (l)(i)(D) and (iii) above, Party A will,
            upon receipt of reasonable notice from Moody's demonstrate to
            Moody's the calculation by it of the mark-to-market value of the
            outstanding Transactions. In relation to paragraph (iii) above,
            Party A will, at its own cost, on receipt of reasonable notice from
            Moody's (which, for the avoidance of doubt, will be no less than 30
            days) arrange a third party valuation of the mark-to-market value of
            the outstanding Transactions.

      (vi)  Moody's Definitions

            For the purposes of this Part 5(l):

            an "Initial Moody's Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor), cease to be rated at least as high as "A1" (or its
                  equivalent) by Moody's, or

            (b)   the short-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor), cease to be rated at least as high as "P-1" (or
                  its equivalent) by Moody's;

            a "Subsequent Moody's Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor), cease to be rated at least as high as "A3" (or its
                  equivalent) by Moody's, or

            (b)   the short-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor), cease to be rated at least as high as "P-2" (or
                  its equivalent) by Moody's; and

            "Required Ratings" means, in respect of a person, its short-term,
            unsecured and unsubordinated debt obligations are rated at least as
            high as "P-1" and its long-term, unsecured and unsubordinated debt
            obligations are rated at least as high as "A1", or such other
            ratings as may be agreed with Moody's from time to time.

                                      17
<PAGE>

(m)   Ratings Downgrade of Party A - Fitch Ratings Ltd ("Fitch")

      (i)   Initial Fitch Note Downgrade Event

            Party A will, on a reasonable efforts basis, within 30 days of the
            occurrence of an Initial Fitch Note Downgrade Event, at its own
            cost, either:-

            (A)   provide collateral in the form of cash or securities or both,
                  in support of its obligations under this Agreement, in
                  accordance with the provisions of the Credit Support Annex; or

            (B)   transfer all of its rights and obligations with respect to
                  this Agreement to a replacement third party whose long-term,
                  unsecured and unsubordinated debt ratings are rated at least
                  as high as "A+" (or its equivalent) by Fitch, and whose
                  short-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "F1" (or its equivalent) by Fitch or
                  such other rating as is commensurate with the rating assigned
                  to the Issuer Notes by Fitch from time to time; or

            (C)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement
                  whose long-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "A+" (or its equivalent) by Fitch,
                  and whose short-term, unsecured and unsubordinated debt
                  ratings are rated at least as high as "F1" (or its equivalent)
                  by Fitch or such other rating as is commensurate with the
                  rating assigned to the Issuer Notes by Fitch from time to
                  time; or

            (D)   take such other action as Party A may agree with Fitch as will
                  result in the rating of the Issuer Notes then outstanding
                  being maintained, or obtain confirmation from Fitch that there
                  is no adverse effect on the rating of the Issuer Notes as a
                  result of that Initial Fitch Downgrade Event so that none of
                  the courses of action outlined at (m)(i)(A), (m)(i)(B) or
                  (m)(i)(C) above need be pursued in respect of such Initial
                  Fitch Downgrade Event.

            If any of sub-paragraphs (m)(i)(B), (m)(i)(C) or (m)(i)(D) are
            satisfied at any time all collateral (or the equivalent thereof, as
            appropriate) transferred by Party A pursuant to sub-paragraph
            (m)(i)(A) will be transferred back to Party A and Party A will not
            be required to transfer any additional collateral in consequence of
            the particular Initial Fitch Note Downgrade Event.

      (ii)  First Subsequent Fitch Note Downgrade Event

            Party A will,

            (A)   at its own cost, within 30 days of the occurrence of a First
                  Subsequent Fitch Note Downgrade Event provide collateral in
                  the form of cash or securities or both, in support of its
                  obligations under this Agreement in accordance with the
                  provisions of the Credit Support Annex; provided

                                      18
<PAGE>

                  that, if at the time when a First Subsequent Fitch Note
                  Downgrade Event Party A has provided collateral pursuant to
                  the Credit Support Annex pursuant to sub-paragraph (m)(i)(A)
                  above it will continue to provide collateral notwithstanding
                  the occurrence of a First Subsequent Fitch Note Downgrade
                  Event; provided further that, in either case, the
                  mark-to-market calculations and the correct and timely
                  provision of collateral thereunder are verified by an
                  independent third party within five Local Business Days of the
                  date on which collateral is provided pursuant to this
                  sub-paragraph (l)(ii)(A) and thereafter, on a periodic basis
                  on every fifth Local Business Day whilst collateral is being
                  provided pursuant to this sub-paragraph (l)(ii)(A) (with the
                  costs of such independent verification being borne by Party
                  A); or

            on a reasonable efforts basis, within 30 days of the occurrence of a
            First Subsequent Fitch Note Downgrade Event, at its own cost,
            either:

            (B)   transfer all of its rights and obligations with respect to
                  this Agreement to a replacement third party whose long-term,
                  unsecured and unsubordinated debt ratings are rated at least
                  as high as "A+" (or its equivalent) by Fitch, and whose
                  short-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "F1" (or its equivalent) by Fitch or
                  such other rating as is commensurate with the rating assigned
                  to the Issuer Notes by Fitch from time to time; or

            (C)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement
                  whose long-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "A+" (or its equivalent) by Fitch,
                  and whose short-term, unsecured and unsubordinated debt
                  ratings are rated at least as high as "F1" (or its equivalent)
                  by Fitch or such other rating as is commensurate with the
                  rating assigned to the Issuer Notes by Fitch from time to
                  time; or

            (D)   take such other action as Party A may agree with Fitch as will
                  result in the rating of the Issuer Notes then outstanding
                  being maintained, or obtain confirmation from Fitch that there
                  is no adverse effect on the rating of the Issuer Notes as a
                  result of that First Subsequent Fitch Downgrade Event so that
                  none of the courses of action outlined at (m)(ii)(A),
                  (m)(ii)(B) or (m)(ii)(C) above need be pursued in respect of
                  such First Subsequent Fitch Downgrade Event.

            If any of sub-paragraphs (m)(ii)(B), (m)(ii)(C) or (m)(ii)(D) above
            are satisfied at any time, all collateral (or the equivalent
            thereof, as appropriate) transferred by Party A pursuant to
            sub-paragraph (m)(ii)(A) above will be transferred back to Party A
            and Party A will not be required to transfer any additional
            collateral as a consequence of the particular First Subsequent Fitch
            Note Downgrade Event.

      (iii) Second Subsequent Fitch Note Downgrade Event

                                      19
<PAGE>

            Party A will, on a reasonable efforts basis, within 30 days of the
            occurrence of a Second Subsequent Fitch Note Downgrade Event, at its
            own cost, either:

            (A)   transfer all of its rights and obligations with respect to
                  this Agreement to a replacement third party whose long-term,
                  unsecured and unsubordinated debt ratings are rated at least
                  as high as "A+" (or its equivalent) by Fitch, and whose
                  short-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "F1" (or its equivalent) by Fitch or
                  such other rating as is commensurate with the rating assigned
                  to the Issuer Notes by Fitch from time to time; or

            (B)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement
                  whose long-term, unsecured and unsubordinated debt ratings are
                  rated at least as high as "A+" (or its equivalent) by Fitch,
                  and whose short-term, unsecured and unsubordinated debt
                  ratings are rated at least as high as "F1" (or its equivalent)
                  by Fitch or such other rating as is commensurate with the
                  rating assigned to the Issuer Notes by Fitch from time to
                  time; or

            (C)   take such other action as Party A may agree with Fitch as will
                  result in the rating of the Issuer Notes then outstanding
                  being maintained, or obtain confirmation from Fitch that there
                  is no adverse effect on the rating of the Issuer Notes as a
                  result of that Second Subsequent Fitch Downgrade Event so that
                  none of the courses of action outlined at (m)(iii)(A) or
                  (m)(iii)(B) above need be pursued in respect of such Second
                  Subsequent Fitch Downgrade Event.

      (iv)  Second Subsequent Fitch Note Downgrade Event - Collateral
            Requirements

            Pending compliance with any of sub-paragraphs (m)(iii)(A),
            (m)(iii)(B) or (m)(iii)(C) above, Party A will provide, at its own
            cost, within 10 days of such Second Subsequent Fitch Note Downgrade
            Event or 30 days of the occurrence of First Subsequent Fitch Note
            Downgrade Event, whichever is the earlier, collateral in the form of
            cash or securities or both, in support of its obligations under this
            Agreement in accordance with the provisions of the Credit Support
            Annex; provided that, if at the time when an Initial Fitch Note
            Downgrade Event or a First Subsequent Fitch Note Downgrade Event, as
            the case may be, occurs Party A has provided collateral pursuant to
            the Credit Support Annex pursuant to sub-paragraphs (m)(i)(A) or
            (m)(ii)(A) above, it will continue to provide collateral
            notwithstanding the occurrence of a Second Subsequent Fitch Note
            Downgrade Event; provided further that in either case, the
            mark-to-market calculations and the correct and timely provision of
            collateral thereunder are verified by an independent third party
            (with the costs of such independent verification being borne by
            Party A).

            If any of sub-paragraphs (m)(iii)(A), (m)(iii)(B) or (m)(iii)(C)
            above are satisfied at any time, all collateral (or the equivalent
            thereof, as appropriate) transferred by

                                      20
<PAGE>

            Party A pursuant to this sub-paragraph (m)(iv) will be transferred
            back to Party A and Party A will not be required to transfer any
            additional collateral as a consequence of the particular Second
            Subsequent Fitch Note Downgrade Event.

      (v)   Additional Termination Events

            If Party A does not take any of the measures described in
            sub-paragraphs (m)(i), (m)(ii) or (m)(iii) above such failure shall
            not be or give rise to an Event of Default but shall constitute an
            Additional Termination Event with respect to Party A and shall be
            deemed to have occurred on the thirtieth day following such Initial
            Fitch Note Downgrade Event, First Subsequent Fitch Note Downgrade
            Event or Second Subsequent Fitch Note Downgrade Event, as the case
            may be, with Party A as the sole Affected Party.

            However, in the event that Party B were to designate an Early
            Termination Date and there would be a payment due to Party A, Party
            B may only designate such an Early Termination Date in respect of an
            Additional Termination Event under this sub-paragraph (m)(v) if
            Party B has found a replacement counterparty willing to enter a new
            transaction with Party B on terms that reflect as closely as
            reasonably possible (as the Note Trustee, on behalf of Party B, may,
            in its absolute discretion, determine) the economic, legal and
            credit terms of the Terminated Transactions with Party A.

      (vi)  Fitch Definitions

            For the purposes of this Part 5(m):

            an "Initial Fitch Note Downgrade Event" will occur where, the
            long-term, unsecured and unsubordinated debt obligations of Party A
            (or its successor) or, if relevant, any guarantor of Party A's
            obligations under this Agreement (or its successor) cease to be
            rated at least as high as "A+" (or its equivalent) by Fitch, and the
            short-term, unsecured and unsubordinated debt obligations of Party A
            (or its successor) or any guarantor of Party A's obligations under
            this Agreement (or its successor), cease to be rated at least as
            high as "F1" (or its equivalent) by Fitch;

            a "First Subsequent Fitch Note Downgrade Event" will occur where,
            the long-term, unsecured and unsubordinated debt obligations of
            Party A (or its successor) or, if relevant, any guarantor of Party
            A's obligations under this Agreement (or its successor), cease to be
            rated at least as high as "BBB+" (or its equivalent) by Fitch, and
            the short-term, unsecured and unsubordinated debt obligations of
            Party A (or its successor) or any guarantor of Party A's obligations
            under this Agreement (or its successor), cease to be rated at least
            as high as "F2" (or its equivalent) by Fitch; and

            a "Second Subsequent Fitch Note Downgrade Event" will occur where,
            the long-term, unsecured and unsubordinated debt obligations of
            Party A (or its successor) or, if relevant, any guarantor of Party
            A's obligations under this

                                      21
<PAGE>

            Agreement (or its successor), cease to be rated at least as high as
            "BBB-" (or its equivalent) by Fitch, and the short-term, unsecured
            and unsubordinated debt obligations of Party A (or its successor) or
            any guarantor of Party A's obligations under this Agreement (or its
            successor), cease to be rated at least as high as "F3" (or its
            equivalent) by Fitch.

(n)   Additional Section 3 and Tax Deductibility Representations

      (i)   Section 3 is amended by the addition at the end thereof of the
            following additional representation:-

            "(g) No Agency. It is entering into this Agreement and each
            Transaction as principal and not as agent of any person."

      (ii)  Party A represents to Party B (which representation will be deemed
            to be repeated by Party A on each date on which a Transaction is
            entered into) that its obligations under this Agreement rank pari
            passu with all of its other unsecured, unsubordinated obligations
            except those obligations preferred by operation of law.

      (iii) The following representation (the "Additional Tax Representation")
            will apply to Party A and will not apply to Party B and will be
            deemed to be repeated by Party A at all times until the termination
            of this Agreement. In relation to each Transaction, either:

            (A)   it is resident in the United Kingdom for United Kingdom tax
                  purposes, or

            (B)   the conditions of Paragraph 31(6) or Paragraph 31(7) of
                  Schedule 26 of the Finance Act 2002 (in each case as amended
                  or re-enacted from time to time) are satisfied with respect to
                  the relevant Transaction.

(o)   Recording of Conversations

      Each party: (i) consents to the recording of telephone conversations
      between the trading, marketing and other relevant personnel of the parties
      in connection with this Agreement or any potential Transaction, (ii)
      agrees to obtain any necessary consent of, and give any necessary notice
      of such recording to, its relevant personnel, and (iii) agrees, to the
      extent permitted by applicable law, that recordings may be submitted in
      evidence in any Proceedings.

(p)   Relationship between the parties

      The Agreement is amended by the insertion after Section 14 of an
      additional Section 15, reading in its entirety as follows:

                                      22
<PAGE>

      "15. Relationship between the parties

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

      (i)   Non Reliance. It is acting for its own account, and it has made its
            own decisions to enter into that Transaction and as to whether that
            Transaction is appropriate or proper for it based upon its own
            judgment and 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 investment advice or a recommendation to
            enter into that Transaction. It has not received from the other
            party any assurance or guarantee as to the expected results of that
            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 that Transaction. It is also capable of
            assuming, and assumes, the financial and other risks of that
            Transaction.

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

(q)   Tax

      The Agreement is amended by deleting Section 2(d) in its entirety and
      replacing it with the following:

      "(d)  Deduction or Withholding for Tax

      (i)   Requirement to Withhold

            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 (including, for the avoidance of doubt, if
            such deduction or withholding is required in order for the payer to
            obtain relief from Tax) by any applicable law, as modified by the
            practice of any relevant governmental revenue authority, then in
            effect. If a party ("X") is so required to deduct or withhold, then
            that party (the "Deducting Party"):-

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

            (B)   will 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 Gross Up Amount (as
                  defined below) paid by the Deducting

                                      23
<PAGE>

                  Party 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;

            (C)   will 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

            (D)   if X is Party A, X will promptly pay in addition to the
                  payment to which Party B is otherwise entitled under this
                  Agreement, such additional amount (the "Gross Up Amount") as
                  is necessary to ensure that the net amount actually received
                  by Party B will equal the full amount which Party B would have
                  received had no such deduction or withholding been required.

      (ii)  Liability

            If:

            (A)   X is required by any applicable law, as modified by the
                  practice of any relevant governmental revenue authority, to
                  make any deduction or withholding for or on account of any Tax
                  in respect of payments under this Agreement; and

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

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

            then, except to the extent that Y has satisfied or then satisfies
            the liability resulting from such Tax, (A) where X is Party B, Party
            A will promptly pay to Party B the amount of such liability (the
            "Liability Amount") (including any related liability for interest
            and together with an amount equal to the Tax payable by Party B on
            receipt of such amount but including any related liability for
            penalties only if Party A has failed to comply with or perform any
            agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)) and Party
            B will promptly pay to the relevant government revenue authority the
            amount of such liability (including any related liability for
            interest and penalties) and (B) where X is Party A and Party A would
            have been required to pay a Gross Up Amount to Party B, Party A will
            promptly pay to the relevant government revenue authority the amount
            of such liability (including any related liability for interest and
            penalties).

      (iii) Tax Credit, etc.

            (a)   Where Party A pays an amount in accordance with Section
                  2(d)(i)(D) or 2(d)(ii)(C) above, Party B undertakes as
                  follows:-

                  (1)   to the extent that Party B obtains any Tax credit,
                        allowance, set-off or repayment from the tax authorities
                        of any jurisdiction relating to

                                      24
<PAGE>

                        any deduction or withholding giving rise to such payment
                        or in the case of Section 2(d)(ii)(B) the amount to be
                        assessed ("Tax Credit"), it shall pay to Party A on the
                        next Note Interest Payment Date after receipt of the
                        same so much of the cash benefit (as determined in
                        accordance with sub-paragraph (iii)(a)(2) below)
                        relating thereto which it has received as will leave
                        Party B in substantially the same (but in any event no
                        worse) position as Party B would have been in if no such
                        deduction or withholding had been required or the amount
                        had not been so assessed;

                  (2)   the "cash benefit" shall, in the case of credit,
                        allowance or set-off, be the additional amount of Tax
                        which would have been payable by Party B in the
                        jurisdiction referred to in sub-paragraph (iii)(a)(1)
                        above but for the obtaining by it of the said Tax
                        credit, allowance or set-off and, in the case of a
                        repayment, shall be the amount of the repayment
                        together, in either case, with any related interest or
                        similar payment obtained by Party B; and

                  (3)   it will use all best endeavours to obtain any Tax Credit
                        as soon as is reasonably practicable, provided that it
                        shall be the sole judge of the amount of any such Tax
                        Credit and of the date on which the same is received and
                        shall not be obliged to disclose to Party A any
                        information regarding its tax affairs or tax
                        computations save that Party B shall, upon request by
                        Party A, supply Party A with a reasonably detailed
                        explanation of its calculation of the amount of any such
                        Tax Credit and of the date on which the same is
                        received.

                        The definition of "Indemnifiable Tax" in Section 14
                        shall be deleted and the following shall be substituted
                        therefor:

                        "Indemnifiable Tax" means any Tax."

(r)   Change of Account

      Section 2(b) of this Agreement is hereby amended by the addition of the
      following at the end thereof:

      "; provided that such new account shall be in the same legal and tax
      jurisdiction as the original account and such new account, in the case of
      Party B, is held with a financial institution with a long-term unsecured
      and unsubordinated debt obligation rating of at least "A1" by Moody's and
      a short-term unsecured, unsubordinated and unguaranteed debt obligation
      rating of at least "P-1" by Moody's and "A-1+" by S&P."

(s)   Condition Precedent

      Section 2(a)(iii) shall be amended by the deletion of the words "or
      Potential Event of Default" in respect of conditions precedent to the
      obligations of Party A only.

                                      25
<PAGE>

(t)   Representations

      (i)   Section 3(a)(v) shall be amended by the addition of the words "(with
            the exception of Section 11 insofar as it relates to any Stamp Tax)"
            after the words "this Agreement".

      (ii)  Section 3(b) shall be amended by the deletion of the words "or
            Potential Event of Default" in respect of the representation given
            by Party B only.

(u)   Transfers

      (i)   Section 7 of this Agreement shall not apply to Party A, who shall be
            required to comply with, and shall be bound by, the following:

            Without prejudice to Section 6(b)(ii) or Part 5(f) Party A may
            transfer all its interest and obligations in and under this
            Agreement to any other entity (a "Transferee"), provided that:

            (a)   it has given five Business Days prior written notice to the
                  Note Trustee;

            (b)   the Transferee's long-term, unsecured and unsubordinated debt
                  obligations are then rated not less than "A1" by Moody's and
                  its short-term, unsecured and unsubordinated debt obligations
                  are then rated not less than "P-1" by Moody's, "A-1+" by S&P
                  and "F1" by Fitch (or its equivalent by any substitute rating
                  agency) or such Transferee's obligations under this Agreement
                  are guaranteed by an entity whose long-term, unsecured and
                  unsubordinated debt obligations are then rated not less than
                  "A1" by Moody's and whose short-term, unsecured and
                  unsubordinated debt obligations are then rated not less than
                  "P-1" by Moody's, "A-1+" by S&P and "F1"by Fitch (or its
                  equivalent by any substitute rating agency);

            (c)   as of the date of such transfer the Transferee will not, as a
                  result of such transfer, be required to withhold or deduct on
                  account of Tax under this Agreement;

            (d)   a Termination Event or an Event of Default does not occur
                  under this Agreement as a result of such transfer;

            (e)   no additional amount will be payable by Party B to Party A or
                  the Transferee on the next succeeding Scheduled Payment Date
                  as a result of such transfer; and

            (f)   (if the Transferee is domiciled in a different country from
                  both Party A and Party B) S&P, Moody's and Fitch have provided
                  prior written notification that the then current ratings of
                  the Issuer Notes will not be adversely affected.

                                      26
<PAGE>

            Following such transfer all references to Party A shall be deemed to
            be references to the Transferee.

(v)   Contracts (Rights of Third Parties) Act 1999

      A person who is not a party to this Agreement shall have no right under
      the Contracts (Rights of Third Parties) Act 1999 to enforce any of its
      terms but this shall not affect any right or remedy of a third party which
      exists or is available apart from that Act.

(w)   Calculations if an Early Termination Date occurs as a result of an Event
      of Default or Additional Termination Event where Party A is the Defaulting
      Party or the sole Affected Party.

      Subject to compliance with clause 14.3(m) (Issuer Swap Agreements) of the
      Issuer Deed of Charge, upon the occurrence of an Event of Default or an
      Additional Termination Event where Party A is the Defaulting Party or the
      sole Affected Party, as applicable, Party B will be entitled (but not
      obliged in the event that it does not designate an Early Termination Date)
      to proceed in accordance with Section 6 of the Agreement subject to the
      following:

      (i)   For the purposes of Section 6(d)(i) of this Agreement, Party B's
            obligation with respect to the extent of information to be provided
            with its calculations is limited to information Party B has already
            received in writing and provided Party B is able to release this
            information without breaching the provisions of any law applicable
            to, or any contractual restriction binding upon, Party B.

      (ii)  The following amendments shall be deemed to be made to the
            definitions of "Market Quotation":

            (a)   the word "firm" shall be added before the word "quotations" in
                  the second line; and

            (b)   the words "provided that the documentation relating thereto is
                  either the same as this Agreement and the Confirmations with
                  respect to the Terminated Transactions (and the long-term
                  unsecured and unsubordinated debt obligations of the Reference
                  Market-maker are rated not less than "A1" by Moody's, and its
                  short-term, unsecured and unsubordinated debt obligations are
                  rated not less than "P-1" by Moody's, "A-1+" by S&P and "F1"
                  by Fitch (or, if such Reference Market-maker is not rated by a
                  Rating Agency, at such equivalent rating (by another rating
                  agency) that is acceptable to each such Rating Agency) or the
                  Rating Agencies have confirmed in writing such proposed
                  documentation will not adversely impact the ratings of the
                  Issuer Notes" shall be added after "agree" in the sixteenth
                  line; and

            (c)   the last sentence shall be deleted and replaced with the
                  following:

                                      27
<PAGE>

                  "If, on the last date set for delivery of quotations, exactly
                  two quotations are provided, the Market Quotation will be the
                  arithmetic mean of the two quotations. If only one quotation
                  is provided on such date, Party B may, in its discretion,
                  accept such quotation as the Market Quotation and if Party B
                  does not accept such quotation (or if no quotation has been
                  provided), it will be deemed that the Market Quotation in
                  respect of the Terminated Transaction cannot be determined."

      (iii) For the purpose of the definition of "Market Quotation", and without
            limitation of the general rights of Party B under the Agreement:

            (A)   Party B will undertake to use its reasonable efforts to obtain
                  at least three firm quotations as soon as reasonably
                  practicable after the Early Termination Date and in any event
                  within the time period specified pursuant to sub-paragraph
                  (w)(iii)(C) below;

            (B)   Party A shall, for the purposes of Section 6(e), be permitted
                  to obtain quotations from Reference Market-makers; and

            (C)   if no quotations have been obtained within six Local Business
                  Days after the occurrence of the Early Termination Date or
                  such longer period as Party B may specify in writing to Party
                  A, then it will be deemed that the Market Quotation in respect
                  of the Terminated Transaction cannot be determined.

      (iv)  Party B will be deemed to have discharged its obligations under
            sub-paragraph (w)(iii)(A) above if it requests that Party A (such
            request to be in writing and made within two Local Business Days
            after the occurrence of the Early Termination Date) obtains
            quotations from Reference Market-makers and Party A agrees to act in
            accordance with such request.

      (v)   Party B will not be obliged to consult with Party A as to the day
            and time of obtaining any quotations.

                                      29
<PAGE>

                                     ISDA(R)

              International Swaps and Derivatives Association, Inc.

                              CREDIT SUPPORT ANNEX

                             to the Schedule to the

                              ISDA Master Agreement

            dated as of the Trade Date specified in the Confirmation

                                     between

   BARCLAYS BANK PLC                   and            GRANITE MASTER ISSUER plc
      ("Party A")                                             ("Party B")

This Annex supplements, forms part of, and is subject to, the ISDA Master
Agreement referred to above and is part of its Schedule. For the purposes of
this Agreement, including, without limitation, Sections 1(c), 2(a), 5 and 6, the
credit support arrangements set out in this Annex constitute a Transaction (for
which this Annex constitutes the Confirmation).

Paragraph 1. Interpretation

Capitalised terms not otherwise defined in this Annex or elsewhere in this
Agreement have the meanings specified pursuant to Paragraph 10, 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 11 and the other provisions of this Annex, Paragraph 11 will prevail.
For the avoidance of doubt, references to "transfer" in this Annex mean, in
relation to cash, payment, and in relation to the assets, delivery.

Paragraph 2. Credit Support Obligations

(a) Delivery Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferee on or promptly following a Valuation Date, if the Delivery Amount for
that Valuation Date equals or exceeds the Transferor's Minimum Transfer Amount,
then the Transferor will transfer to the Transferee Eligible Credit Support
having a Value as of the date of transfer at least equal to the applicable
Delivery Amount (rounded pursuant to Paragraph 11(b)(iii)(D)). Unless otherwise

                                      30
<PAGE>

specified in Paragraph 11(b), the "Delivery Amount" applicable to the Transferor
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 the Transferor's Credit
      Support Balance (adjusted to include any prior Delivery Amount and to
      exclude any prior Return Amount, the transfer of which, in each case, has
      not yet been completed and for which the relevant Settlement Day falls on
      or after such Valuation Date).

(b) Return Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferor on or promptly following a Valuation Date, if the Return Amount for
that Valuation Date equals or exceeds the Transferee's Minimum Transfer Amount,
then the Transferee will transfer to the Transferor Equivalent Credit Support
specified by the Transferor 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 11(b)(iii)(D)) and the Credit Support Balance will, upon
such transfer, be reduced accordingly. Unless otherwise specified in Paragraph
11(b), the "Return Amount" applicable to the Transferee for any Valuation Date
will equal the amount by which:

      (i) the Value as of that Valuation Date of the Transferor's Credit Support
      Balance (adjusted to include any prior Delivery Amount and to exclude any
      prior Return Amount, the transfer of which, in each case, has not yet been
      completed and for which the relevant Settlement Day falls on or after such
      Valuation Date).

      exceeds

      (ii) the Credit Support Amount.

Paragraph 3. Transfers, Calculations and Exchanges

(a) Transfers. All transfers under this Annex of any Eligible Credit Support,
Equivalent Credit Support, Interest Amount or Equivalent Distributions shall be
made in accordance with the instructions of the Transferee or Transferor, as
applicable, and shall be made:

      (i) in the case of cash, by transfer into one or more bank accounts
      specified by the recipient;

      (ii) in the case of certificated securities which cannot or which the
      parties have agreed will not be delivered by book-entry, by delivery in
      appropriate physical form to the recipient or its account accompanied by
      any duly executed instruments of transfer, transfer tax stamps and any
      other documents necessary to constitute a legally valid transfer of the
      transferring party's legal and beneficial title to the recipient; and

      (iii) in the case of securities which the parties have agreed will be
      delivered by book-entry, by the giving of written instructions (including,
      for the avoidance of doubt,

                                      31
<PAGE>

      instructions given by telex, facsimile transmission or electronic
      messaging system) to the relevant depository institution or other entity
      specified by the recipient, together with a written copy of the
      instructions to the recipient, sufficient, if complied with, to result in
      a legally effective transfer of the transferring party's legal and
      beneficial title to the recipient.

Subject to Paragraph 4 and unless otherwise specified, if a demand for the
transfer of Eligible Credit Support or Equivalent Credit Support is received by
the Notification Time, then the relevant transfer will be made not later than
the close of business on the Settlement Day relating to the date such demand is
received; if a demand is received after the Notification Time, then the relevant
transfer will be made not later than the close of business on the Settlement Day
relating to the day after the date such demand is received.

(b) Calculations. All calculations of Value and Exposure for purposes of
Paragraphs 2 and 4(a) will be made by the relevant Valuation Agent as of the
relevant 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 4(a), following the date of
calculation).

(c) Exchanges.

      (i) Unless otherwise specified in Paragraph 11, the Transferor may on any
      Local Business Day by notice inform the Transferee that it wishes to
      transfer to the Transferee Eligible Credit Support specified in that
      notice (the "New Credit Support") in exchange for certain Eligible Credit
      Support (the "Original Credit Support") specified in that notice comprised
      in the Transferor's Credit Support Balance.

      (ii) If the Transferee notifies the Transferor that it has consented to
      the proposed exchange, (A) the Transferor will be obliged to transfer the
      New Credit Support to the Transferee on the first Settlement Day following
      the date on which it receives notice (which may be oral telephonic notice)
      from the Transferee of its consent and (B) the Transferee will be obliged
      to transfer to the Transferor Equivalent Credit Support in respect of the
      Original Credit Support not later than the Settlement Day following the
      date on which the Transferee receives the New Credit Support, unless
      otherwise specified in Paragraph 11(d) (the "Exchange Date"); provided
      that the Transferee will only be obliged to transfer Equivalent Credit
      Support with a Value as of the date of transfer as close as practicable
      to, but in any event not more than, the Value of the New Credit Support as
      of that date.

Paragraph 4. Dispute Resolution

(a) Disputed Calculations or Valuations. If a party (a "Disputing Party")
reasonably 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 Equivalent 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

                                      32
<PAGE>

      Business Day following, in the case of (I) above, the date that the demand
      is received under Paragraph 2 or, in the case of (II) above, the date of
      transfer;

      (2) in the case of (I) above, the appropriate party will transfer the
      undisputed amount to the other party not later than the close of business
      on the Settlement Day following the date that the demand is received under
      Paragraph 2;

      (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 11(c), the Valuation
            Agent will recalculate the Exposure and the Value as of the
            Recalculation Date by:

                  (A) utilising any calculations of that part of the Exposure
                  attributable to the Transactions that the parties have agreed
                  are not in dispute;

                  (B) calculating that part of the Exposure attributable to the
                  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, then fewer
                  than four quotations may be used for that Transaction, and if
                  no quotations are available for a particular Transaction, then
                  the Valuation Agent's original calculations will be used for
                  the Transaction; and

                  (C) utilising the procedures specified in Paragraph 11(e)(ii)
                  for calculating the Value, if disputed, of the outstanding
                  Credit Support Balance;

            (ii) in the case of a dispute involving the Value of any transfer of
            Eligible Credit Support or Equivalent Credit Support, the Valuation
            Agent will recalculate the Value as of the date of transfer pursuant
            to Paragraph 11(e)(ii).

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) as
soon as possible but in any event not later than the Notification Time on the
Local Business Day following the Resolution Time. The appropriate party will,
upon demand following such notice given the Valuation Agent or resolution
pursuant to (3) above and subject to Paragraph 3(a), make the appropriate
transfer.

(b) No Event of Default. The failure by a party to make a transfer of any amount
which is the subject of a dispute to which Paragraph 4(a) applies will not
constitute an Event of Default for as long as the procedures set out in this
Paragraph 4 are being carried out. For the avoidance of doubt, upon completion
of those procedures, Section 5(a)(i) of this Agreement will apply to any failure
by a party to make a transfer required under the final sentence of Paragraph
4(a) on the relevant due date.

                                      33
<PAGE>

Paragraph 5. Transfer of Title, No Security Interest, Distributions and Interest
Amount

(a) Transfer of Title. Each party agrees that all right, title and interest in
and to any Eligible Credit Support, Equivalent Credit Support, Equivalent
Distributions or Interest Amount which it transfers to the other party under the
terms of this Annex shall vest in the recipient free and clear of any liens,
claims, charges or encumbrances or any other interest of the transferring party
or of any third person (other than a lien routinely imposed on all securities in
a relevant clearance system).

(b) No Security Interest. Nothing in this Annex is intended to create or does
create in favour of either party any mortgage, charge, lien, pledge, encumbrance
or other security interest in any cash or other property transferred by one
party to the other party under the terms of this Annex.

(c) Distributions and Interest Amount.

      (i) Distributions. The Transferee will transfer to the Transferor not
      later than the Settlement Day following each Distributions Date cash,
      securities or other property of the same type, nominal value, description
      and amount as the relevant Distributions ("Equivalent Distributions") to
      the extent that a Delivery Amount would not be created or increased by the
      transfer, as calculated by the Valuation Agent (and the date of
      calculation will be deemed a Valuation Date for this purpose).

      (ii) Interest Amount. Unless otherwise specified in Paragraph 11(f)(iii),
      the Transferee will transfer to the Transferor at the times specified in
      Paragraph 11(f)(ii) the relevant Interest Amount to the extent that a
      Delivery Amount would not be created or increased by the transfer, as
      calculated by the Valuation Agent (and the date of calculation will be
      deemed a Valuation Date for this purpose).

Paragraph 6. Default

If any Early Termination Date is designated or deemed to occur as a result of an
Event of Default in relation to a party, an amount equal to the Value of the
Credit Support Balance, determined as though the Early Termination Date were a
Valuation Date, will be deemed to be an Unpaid Amount due to the Transferor
(which may or may not be the Defaulting Party) for purposes of Section 6(e). For
the avoidance of doubt, if Market Quotation is the applicable payment measure
for purposes of Section 6(e), then the Market Quotation determined under Section
6(e) in relation to the Transaction constituted by this Annex will be deemed to
be zero, and if Loss is the applicable payment measure for purposes of Section
6(e), then the Loss determined under Section 6(e) in relation to the Transaction
will be limited to the Unpaid Amount representing the Value of the Credit
Support Balance.

Paragraph 7. Representation

Each party represents to the other party (which representation will be deemed to
be repeated as of each date on which it transfers Eligible Credit Support,
Equivalent Credit Support or Equivalent Distributions) that is the sole owner of
or otherwise has the right to transfer all Eligible Credit Support, Equivalent
Credit Support or Equivalent Distributions it transfers to the other party under

                                      34
<PAGE>

this Annex, free and clear of any security interest, lien encumbrance or other
restriction (other than lien routinely imposed on all securities in a relevant
clearance system).

Paragraph 8. Expenses

Each party will pay its own costs and expenses (including any stamp, transfer,
or similar transaction tax or duty payable on any transfer it is required to
make under this Annex) in connection with performing its obligations under this
Annex, and neither party will be liable for any such costs and expenses incurred
by the other party.

Paragraph 9. Miscellaneous

(a) Default Interest. Other than in the case of an amount which is the subject
of dispute under Paragraph 4(a), if a Transferee fails to make, when due, any
transfer of Equivalent Credit Support, Equivalent Distributions or the Interest
Amount, it will be obliged to pay the Transferor (to the extent permitted under
applicable law) an amount equal to interest at the Default Rate multiplied by
the Value on the relevant Valuation Date of the items of property that were
required to be transferred, from (and including) the date that the Equivalent
Credit Support, Equivalent Distributions or Interest Amount were required to be
transferred to (but excluding) the date of transfer of the Equivalent Credit
Support, Equivalent Distributions or Interest Amount. This interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed.

(b) 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.

(c) Demands and Notices. All demands and notices given by a party under this
Annex will be given as specified in Section 12 of this Agreement.

(d) Specifications of Certain Matters. Anything referred to in this Annex as
being specified in Paragraph 11 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.

Paragraph 10. Definitions

As used in this Annex:

"Base Currency" means the currency specified as such in Paragraph 11(a)(i).

"Base Currency Equivalent" means, with respect to an amount on a Valuation Date,
in the case of an amount denominated in the Base Currency, such Base Currency
and, in the case of an amount denominated in a currency other than the Base
Currency (the "Other Currency"), the amount of Base Currency required to
purchase such amount of the Other Currency at the spot exchange rate determined
by the Valuation Agent for value on such Valuation Date.

"Credit Support Amount" means, with respect to a Transferor on a Valuation Date,
(i) the Transferee's Exposure plus (ii) all Independent Amounts applicable to
the Transferor, if any, minus

                                      35
<PAGE>

(iii) all Independent Amounts applicable to the Transferee, if any, minus (iv)
the Transferor'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.

"Credit Support Balance" means, with respect to a Transferor on a Valuation
Date, the aggregate of all Eligible Credit Support that has been transferred to
or received by the Transferee under this Annex, together with any Distributions
and all proceeds of any such Eligible Credit Support or Distributions, as
reduced pursuant to Paragraph 2(b), 3(c)(ii) or 6. Any Equivalent Distributions
or Interest Amount (or portion of either) not transferred pursuant to Paragraph
5(c)(i) or (ii) will form part of the Credit Support Balance.

"Delivery Amount" has the meaning specified in Paragraph 2(a).

"Disputing Party" has the meaning specified in Paragraph 4.

"Distributions" means, with respect to any Eligible Credit Support comprised in
the Credit Support Balance consisting of securities, all principal, interest and
other payments and distributions of cash or other property to which a holder of
securities of the same type, nominal value, description and amount as such
Eligible Credit Support would be entitled from time to time.

"Distribution Date" means, with respect to any Eligible Credit Support comprised
in the Credit Support Balance other than cash, each date on which a holder of
such Eligible Credit Support is entitled to receive Distributions or, if that
date is not a Local Business Day, the next following Local Business Day.

"Eligible Credit Support" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 11(b)(ii) including, in relation
to any securities, if applicable, the proceeds of any redemption in whole or in
party of such securities by the relevant issuer.

"Eligible Currency" means each currency specified as such in Paragraph
11(a)(ii), if such currency is freely available.

"Equivalent Credit Support" means, in relation to any Eligible Credit Support
comprised in the Credit Support Balance, Eligible Credit Support of the same
type, nominal value, description and amount as that Eligible Credit Support.

"Equivalent Distributions" has the meaning specified in Paragraph 5(c)(i).

"Exchange Date" has the meaning specified in Paragraph 11(d).

"Exposure" means, with respect to a party on a Valuation Date and subject to
Paragraph 4 in the case of a dispute, the amount, if any, that would be payable
to that party by the other party (expressed as a positive number) or by that
party to the other party (expressed as a negative number) pursuant to Section
6(e)(ii)(1) of this Agreement if all Transactions (other than the Transaction
constituted by this Annex) were being terminated as of the relevant Valuation
Time, on the basis that (i) that party is not the Affected Party and (ii) the
Base Currency is the Termination Currency; provided that Market Quotations will
be determined by the Valuation Agent on behalf of that party

                                      36
<PAGE>

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 Base Currency
Equivalent of the amount specified as such for that party in Paragraph
11(b)(iii)(A); if not amount is specified, zero.

"Interest Amount" means, with respect to an Interest Period, the aggregate sum
of the Base Currency Equivalents of the amounts of interest determined for each
relevant currency and calculated for each day in that Interest Period on the
principal amount of the portion of the Credit Support Balance comprised of cash
in such currency, determined by the Valuation Agent for each such day as
follows:

      (x)   the amount of cash in such currency on that day; multiplied by

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

      (z)   360 (or, in the case of pounds sterling, 365).

"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 Eligible Credit Support or
Equivalent Credit Support in the form of cash was transferred to or received by
the Transferee) to (but excluding) the Local Business Day on which the current
Interest Amount is transferred.

"Interest Rate" means with respect to an Eligible Currency, the rate specified
in Paragraph 11(f)(i) for that currency.

"Local Business Day" , unless otherwise specified in Paragraph 11(h), means:

      (i) in relation to a transfer of cash or other property (other than
      securities) under this Annex, a day on which commercial banks are open for
      business (including dealings in foreign exchange and foreign currency
      deposits) 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;

      (ii) in relation to a transfer of securities under this Annex, a day on
      which the clearance system agreed between the parties for delivery of the
      securities is open for the acceptance and execution of settlement
      instructions or, if delivery of the securities is contemplated by other
      means, a day on which commercial banks are open for business (including
      dealings in foreign exchange and foreign currency deposits) in the
      place(s) agreed between the parties for this purpose.

      (iii) in relation to a valuation under this Annex, a day on which
      commercial banks are open for business (including dealings in foreign
      exchange and foreign currency deposits) in the place of location of the
      Valuation Agent and in the place(s) agreed between the parties for this
      purpose; and

                                      37
<PAGE>

      (iv) in relation to any notice or other communication under this Annex, a
      day on which commercial banks are open for business (including dealings in
      foreign exchange and foreign currency deposits) in the place specified in
      the address for notice most recently provided by the recipient.

"Minimum Transfer Amount" means, with respect to a party, the amount specified
as such for that party in Paragraph 11(b)(iii)(C); if no amount is specified,
zero.

"New Credit Support" has the meaning specified in Paragraph 3(c)(i).

"Notification Time" has the meaning specified in Paragraph 11(c)(iv).

"Recalculation Date" means the Valuation Date that gives rise to the dispute
under Paragraph 4; provided however, that if a subsequent Valuation Date occurs
under Paragraph 2 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 2.

"Resolution Time" has the meaning specified in Paragraph 11(c)(i).

"Return Amount" has the meaning specified in Paragraph 2(b).

"Settlement Day" means, in relation to a date, (i) with respect to a transfer of
cash or other property (other than securities), the next Local Business Day and
(ii) with respect to a transfer of securities, the first Local Business Day
after such date on which settlement of a trade in the relevant securities, if
effected on such date, would have been settled in accordance with customary
practice when settling through the clearance system agreed between the parties
for delivery of such securities or, otherwise, on the market in which such
securities are principally traded (or, in either case, if there is no such
customary practice, on the first Local Business Day after such date on which it
is reasonably practicable to deliver such securities).

"Threshold" means, with respect to a party, the Base Currency Equivalent of the
amount specified as such for that party in Paragraph 11(b)(iii)(B); if no amount
is specified, zero.

"Transferee" means, in relation to each Valuation Date, the party in respect of
which Exposure is a positive number and, in relation to a Credit Support
Balance, the party which, subject to this Annex, owes such Credit Support
Balance or, as the case may be, the Value of such Credit Support Balance to the
other party.

"Transferor" means, in relation to a Transferee, the other party.

"Valuation Agent" has the meaning specified in Paragraph 11(c)(i).

"Valuation Date" means each date specified in or otherwise determined pursuant
to Paragraph 11(c)(ii).

"Valuation Percentage" means, for any item of Eligible Credit Support, the
percentage specified in Paragraph 11(b)(ii).

                                      38
<PAGE>

"Valuation Time" has the meaning specified in Paragraph 11(c)(iii).

"Value" means, for any Valuation Date or other date for which Value is
calculated, and subject to Paragraph 4 in the case of a dispute, with respect
to:

      (i)   Eligible Credit Support comprised in a Credit Support Balance that
            is:

            (A) an amount of cash, the Base Currency Equivalent of such amount
            multiplied by the applicable Valuation Percentage, if any; and

            (B) a security, the Base Currency Equivalent of the bid price
            obtained by the Valuation Agent multiplied by the applicable
            Valuation Percentage, if any; and

      (ii)  items that are comprised in a Credit Support Balance and are not
            Eligible Credit Support, zero.

<PAGE>

                                              Barclays/Granite Master Issuer plc
                Cross Currency/Interest Rate Paragraph 11 to the English law CSA
                                                   Agreed Form Version: 23.01.07

                            Agreed Form Paragraph 11

Paragraph 11. Elections and Variables

(a)   Base Currency and Eligible Currency.

      (i)   "Base Currency" means GBP.

      (ii)  "Eligible Currency" means the Base Currency, and, where relevant,

            if the Transaction is a EUR/GBP cross currency swap transaction,
            Euro; and if the Transaction is a USD/GBP cross currency swap
            transaction, U.S. Dollars.

It is agreed by the parties that where the Credit Support Amount is transferred
in a currency other than the Eligible Currency, the Valuation Percentage
specified in Paragraph 11(b)(ii) shall be reduced by a percentage agreed by the
parties and approved by the relevant rating agency ("Additional Valuation
Percentage"), such Additional Valuation Percentage as agreed by the parties and
approved by the relevant rating agency. For the purpose of this Annex,
references to the "relevant rating agency" shall mean the rating agency whose
Ratings Criteria will be used to determine the amount of Eligible Credit Support
that Party A is required to transfer to Party B following a credit ratings
downgrade of Party A.

(b)   Credit Support Obligations.

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

            (A)   "Delivery Amount" has the meaning specified in Paragraph 2(a),
                  except that the words, "upon a demand made by the Transferee"
                  shall be deleted.

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

            (C)   "Credit Support Amount" has the meaning given to such term in
                  respect of each of the Rating Agencies' criteria set out in
                  Paragraph 11(h)(v) below. In circumstances where more than one
                  of the Ratings Criteria apply to Party A, the Credit Support
                  Amount shall be calculated by reference to the Ratings
                  Criteria which would result in Party A transferring the
                  greatest amount of Eligible Credit Support. Under no
                  circumstances will Party A be required to transfer more
                  Eligible Credit Support than the greatest amount calculated in
                  accordance with the Ratings Criteria set out below.

                                       1
<PAGE>

(ii)  Eligible Credit Support. The following items will qualify as "Eligible
      Credit Support" for Party A:

<TABLE>
<CAPTION>
<S>       <C>                                                                        <C>
                                                                                     Valuation Percentage
(A)       cash in an Eligible Currency                                               100 per cent.

(B)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P and Moody's, 98.5
          Kingdom, the Federal Republic of Germany, the Republic of France,          per cent. and for the purposes of  Fitch,
          Italy, Netherlands, Sweden, Belgium or the United States of America        the Advanced Rate (the "Advanced Rate")
          (with local and foreign currency issuer ratings equal to or greater        under the heading "Notes' Rating/AAA" in the
          than AA- by S&P, AA- by Fitch and Aa3 by Moody's) having a                 table entitled "Advanced Rates (%)" in
          remaining time to maturity of not more than one year;                      Appendix 3 to Fitch's Structured Finance
                                                                                     Report entitled "Counterparty Risk in
                                                                                     Structured Finance Transactions: Swap
                                                                                     Criteria" dated 13 September 2004  (the
                                                                                     "Fitch Report").

(C)       negotiable debt obligations issued by the Government of the United         To be agreed between Party A, Party B,
          Kingdom, the Federal Republic of Germany, the Republic of France,          Fitch, S&P and Moody's from time to time.
          Italy, Netherlands, Sweden, Belgium or the United States of America
          (with local and foreign currency issuer ratings equal to or greater
          than AA- by S&P, AA- by Fitch and Aa3 by Moody's) having a
          remaining time to maturity of more than one year but not more than
          5 years;

(D)       negotiable debt obligations issued by the Government of the United         To be agreed between Party A, Party B,
          Kingdom, the Federal Republic of Germany, the Republic of France,          Fitch, S&P and Moody's from time to time.
          Italy, Netherlands, Sweden, Belgium or the United States of America
          (with local and foreign currency issuer ratings equal to or greater
          than AA- by S&P, AA- by Fitch and Aa3 by Moody's) having a
          remaining time to maturity of more than 5 years but not more than
          10

                                       2
<PAGE>

          years;

(E)       negotiable debt obligations issued by the Government of the United         To be agreed between Party A, Party B,
          Kingdom, the Federal Republic of Germany, the Republic of France,          Fitch, S&P and Moody's from time to time.
          Italy, Netherlands, Sweden, Belgium or the United States of America
          (with local and foreign currency issuer ratings equal to or greater
          than AA- by S&P, AA- by Fitch and Aa3 by Moody's) having a
          remaining time to maturity of more than 10 years; or

(F)       such other items as agreed between Party A and the Rating Agencies,        Such Valuation Percentage as agreed between
          from time to time, which Party B can lawfully receive from, and            Party A and the Rating Agencies from time to
          transfer back to, Party A as required, that will qualify as                time in respect of such Eligible Credit
          Eligible Credit Support.                                                   Support.
</TABLE>

      Where negotiable debt obligations are rated by only one of the above
      relevant rating agencies, the rating applied will be based on the rating
      of that agency.

      Where the ratings and/or the Valuation Percentages of the relevant rating
      agencies differ with respect to the same negotiable debt obligation, for
      the purposes of B to E above the lower of the ratings and/or the Valuation
      Percentages, as the case maybe, shall apply.

(iii) Thresholds.

      (A)   "Independent Amount" means, for Party A and Party B, zero.

      (B)   "Threshold" means, for Party A,

            infinity, unless Party A, in the event of: (a) an Initial S&P Note
            Downgrade Event or a Subsequent S&P Note Downgrade Event (which in
            each case, is continuing) has not otherwise complied with Part
            5(k)(i)(B), Part 5(k)(i)(C) or Part 5(k)(i)(D) or Part 5(k)(ii)(A)
            of the Agreement, as the case may be, and/or (b) an Initial Moody's
            Note Downgrade Event or a Subsequent Moody's Note Downgrade Event
            (which in each case, is continuing), has not otherwise complied with
            Part 5(l)(i)(A), Part 5(l)(i)(B), Part 5(l)(i)(C), Part 5(l)(ii)(A),
            Part 5(l)(ii)(B) or Part 5(l)(ii)(C) of the Agreement, as the case
            may be, and/or (c) an Initial Fitch Note Downgrade Event or a First
            Subsequent Fitch Note Downgrade Event or a Second Subsequent Fitch
            Note Downgrade Event (which in each case, is continuing) has not
            otherwise complied with Part 5(m)(i)(B), Part 5(m)(i)(C), Part
            5(m)(i)(D), Part 5(m)(ii)(B), Part 5(m)(ii)(C), Part 5(m)(ii)(D),
            Part 5(m)(iii)(A), Part

                                       3
<PAGE>

            5(m)(iii)(B) or Part 5(m)(iii)(C) of the Agreement, as the case may
            be, then its Threshold shall be zero, and

            "Threshold" means, for Party B: infinity

      (C)   "Minimum Transfer Amount" means, with respect to Party A and Party
            B, GBP 50,000 provided, that if (1) an Event of Default has occurred
            and is continuing in respect of which Party A is the Defaulting
            Party, or (2) an Additional Termination Event has occurred in
            respect of which Party A is an Affected Party, the Minimum Transfer
            Amount with respect to Party A shall be zero.

      (D)   "Rounding". The Delivery Amount and the Return Amount will be
            rounded up and down to the nearest integral multiple of GBP 10,000
            respectively, subject to the maximum Return Amount being equal to
            the Credit Support Balance.

(c)   Valuation and Timing.

      (i)   "Valuation Agent" means Party A in all circumstances.

      (ii)  "Valuation Date" means each Local Business Day.

      (iii) "Valuation Time" means the close of business on the Local Business
            Day immediately preceding 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 by 2:00 p.m., London time, on a Local
            Business Day.

(d)   Exchange Date. "Exchange Date" has the meaning specified in Paragraph
      3(c)(ii).

(e)   Dispute Resolution.

      (i)   "Resolution Time" means 2:00 p.m., London time, on the Local
            Business Day following the date on which notice is given that gives
            rise to a dispute under Paragraph 4.

      (ii)  Value. For the purpose of Paragraphs 4(a)(4)(i)(C) and 4(a)(4)(ii),
            the Value of the outstanding Credit Support Balance or of any
            transfer of Eligible Credit Support or Equivalent Credit Support, as
            the case may be, on the relevant date will be calculated as follows:

            (A)   with respect to any Eligible Credit Support or Equivalent
                  Credit Support comprising securities ("Securities") the Base
                  Currency Equivalent of the sum of:

                                       4
<PAGE>

                  (a)   (x) the last bid price on such date for such Securities
                        on the principal national securities exchange on which
                        such Securities are listed, multiplied by the applicable
                        Valuation Percentage, or (y) where any Securities are
                        not listed on a national securities exchange, the bid
                        price for such Securities quoted as at the close of
                        business on such date by any principal market maker
                        (which shall not be and shall be independent from the
                        Valuation Agent) for such Securities chosen by the
                        Valuation Agent, multiplied by the applicable Valuation
                        Percentage, or (z) if no such bid price is able to be
                        obtained for such date under sub-paragraphs (x) or (y)
                        above, the last bid price listed determined pursuant to
                        sub-paragraph (x), or failing which sub-paragraph (y),
                        as of the day next preceding such date on which such
                        prices were available, multiplied by the applicable
                        Valuation Percentage; and

                  (b)   the accrued interest where applicable on such Securities
                        (except to the extent that such interest shall have been
                        paid to the Transferor pursuant to Paragraph 5(c)(ii) or
                        included in the applicable price referred to in
                        Paragraph 11(e)(ii)(A)(a) above) as of such date,

                  provided that it is understood that in no circumstances shall
                  the Transferee be required to transfer a Return Amount in
                  excess of the Credit Support Balance;

            (B)   with respect to any Cash, the Base Currency Equivalent of the
                  amount thereof; and

            (C)   with respect to any Eligible Credit Support or Equivalent
                  Credit Support other than Securities and Cash, the Base
                  Currency Equivalent of the fair market value thereof on such
                  date, as determined in any reasonable manner chosen by the
                  Valuation Agent, multiplied by the applicable Valuation
                  Percentage.

      (iii) Alternative. The provisions of Paragraph 4 will apply.

(f)   Distribution and Interest Amount.

      (i)   Interest Rate. The "Interest Rate" in relation to each Eligible
            Currency specified below will be:

<TABLE>
<CAPTION>
            Eligible Currency                                      Interest Rate
            <S>                                                    <C>
            USD                                                    For the relevant determination date, the effective
                                                                   federal funds rate in U.S. Dollars published on
                                                                   Telerate Screen Page 118 for the

                                       5
<PAGE>

                                                                   relevant day at the close of business in New York on
                                                                   such day.

            Euro                                                   For the relevant determination date, "EONIA", which
                                                                   means the overnight rate for such day, as set forth
                                                                   under the heading on Telerate Screen Page 247 or any
                                                                   successor page.

            GBP                                                    For the relevant determination date, "SONIA" which
                                                                   means the reference rate equal to the overnight rate
                                                                   as calculated by the Wholesale Market Brokers
                                                                   Association which appears on Telerate Page 3937 under
                                                                   the heading "Sterling Overnight Index" as of 9.00
                                                                   a.m., London time, on the first London Banking Day
                                                                   following that day.
</TABLE>

      (ii)  Transfer of Interest Amount. The transfer of the Interest Amount
            will be made on the first Local Business Day following the end of
            each calendar month, provided that: (1) Party B has earned and
            received such amount of interest, and (2) a Delivery Amount would
            not arise as a result of, or if already existing, would not be
            increased by, such transfer on such date or on any other Local
            Business Day on which Equivalent Credit Support is to be transferred
            to the Transferor pursuant to Paragraph 2(b).

      (iii) Alternative to Interest Amount. The provisions of Paragraph 5(c)(ii)
            will apply. For the purposes of calculating the Interest Amount the
            amount of interest calculated for each day of the Interest Period
            shall, with respect to any Eligible Currency, be compounded daily.

      (iv)  Interest Amount. The definition of "Interest Amount" in Paragraph 10
            shall be deleted and replaced with the following:

            ""Interest Amount" means, with respect to an Interest Period and
            each portion of the Credit Support Balance comprised of cash in an
            Eligible Currency, the sum of the amounts of interest determined for
            each day in that Interest Period by the Valuation Agent as follows:

            (x)   the amount of such currency comprised in the Credit Support
                  Balance at the close of business for general dealings in the
                  relevant currency on such day (or, if such day is not a Local
                  Business Day, on the immediately preceding Local Business
                  Day); multiplied by

            (y)   the relevant Interest Rate; divided by

            (z)   360 (or in the case of Pounds Sterling, 365)."

(g)   Addresses for Transfers.

                                       6
<PAGE>

      Party A:

<TABLE>
<CAPTION>
GBP Cash                     EUR Cash                     USD Cash
--------                     --------                     --------
<S>                          <C>                          <C>
Barclays Bank London         Barclays Bank London         Barclays Bank PLC
Sort Code 20-00-00           Sort Code 20-00-00           Sort Code 20-00-00
A/c number: 50654140         A/c number 44295577          A/C 050035428
A/c name: Barclays Capital   A/c name: Barclays Capital   A/c name: Barclays Capital
Ref: Granite Collateral      Ref: Granite Collateral      Ref: Granite Collateral
</TABLE>

      Party B: To be advised.

(h)   Other Provisions.

      (i)   Transfer Timing

            (A)   The final paragraph of Paragraph 3(a) shall be deleted and
                  replaced with the following:

                  "Subject to Paragraph 4, and unless otherwise specified, any
                  transfer of Eligible Credit Support or Equivalent Credit
                  Support (whether by the Transferor pursuant to Paragraph 2(a)
                  or by the Transferee pursuant to Paragraph 2(b)) shall be made
                  not later than the close of business on the Settlement Day."

            (B)   The definition of Settlement Day shall be deleted and replaced
                  with the following:

                  "Settlement Day" means the next Local Business Day after the
                  Demand Date.

            (C)   For the purposes of this Paragraph 11(h)(i):

                  "Demand Date" means, with respect to a transfer by a party:

                  (i)   in the case of a transfer pursuant to Paragraph 2,
                        Paragraph 3 or Paragraph 4(a)(2), the relevant Valuation
                        Date (assuming that, in the case of any transfer to be
                        made by the Transferee, the Transferee has received a
                        demand on such date from the Transferor). For the
                        purposes of Paragraph 2 and Paragraph 4(a)(2), the
                        Transferor will be deemed to receive notice of the
                        demand by the Transferee to make a transfer of Eligible
                        Credit Support; and

                  (ii)  in the case of a transfer pursuant to Paragraph
                        3(c)(ii)(A), the date on which the Transferee has given
                        its consent to the proposed exchange.

                  On each Demand Date the Transferor shall deliver to the
                  Transferee and the Note Trustee a statement showing the amount
                  of Eligible Credit Support to be delivered.

                                       7
<PAGE>

      (ii)  Early Termination

            The heading for Paragraph 6 shall be deleted and replaced with
            "Early Termination" and the following shall be added after the word
            "party" in the second line of Paragraph 6, "or a Termination Event
            where all Transactions are Affected Transactions".

      (iii) Costs of Transfer on Exchange

            Notwithstanding Paragraph 8, the Transferor will be responsible for,
            and will reimburse the Transferee for, all costs and expenses
            (including any stamp, transfer or similar transaction tax or duty
            payable on any transfer that it is required to make under this
            Annex) in connection with performing both its and the Transferee's
            obligations under this Annex, including but not limited to those
            involved in the transfer of Eligible Credit Support or Equivalent
            Credit Support either from the Transferor to the Transferee or from
            the Transferee to the Transferor hereto.

      (iv)  Single Transferor and Single Transferee

            Party A and Party B agree that the definitions of "Transferee" and
            "Transferor" in Paragraph 10 of this Annex shall be deleted in their
            entirety and replaced with the following in lieu thereof:
            ""Transferor" means Party A; and "Transferee" means Party B, and,
            for the avoidance of doubt, only Party A will be required to make
            transfers of Delivery Amounts hereunder.

      (v)   "Ratings Criteria" means, the criteria used by S&P (as set out in
            S&P's Structure Finance report entitled "Global Interest Rate and
            Currency Swaps: Calculating the Collateral Required Amount"
            publication dated 26 February 2004 and S&P's article entitled
            "Standard and Poor's Global Interest Rate and Currency Swap
            Counterparty Rating Criteria Expanded" publication dated 17 December
            2003 (the "S&P Publications")) ("S&P Criteria"), the criteria used
            by Moody's ("Moody's Criteria") and the criteria used by Fitch (as
            set out in the Fitch Report) ("Fitch Criteria") for the purposes of
            determining the amount of Eligible Credit Support Party A is
            required to transfer hereunder following a credit ratings downgrade
            where Party A has opted to or is required to transfer Eligible
            Credit Support in support of its obligations under the Agreement
            pursuant to Part 5(k), Part 5(l) and/or Part 5(m), as the case may
            be, of the Schedule to the Agreement, in respect of each of which
            the definition of "Credit Support Amount" is set out below.

            Moody's Criteria

            "Credit Support Amount" shall be calculated in accordance with the
            meaning specified in Paragraph 10, provided however, that the words
            "plus the Additional Collateral Amount" shall be added after the
            words "Transferee's Exposure" in the second line thereof.

                                       8
<PAGE>

      For such purposes "Additional Collateral Amount" means with respect to a
      Valuation Date, the sum of (a) the Transferee's Exposure multiplied by "A"
      and (b) the product of "B" multiplied by the Transaction Notional Amount,
      where:

      (i)   "A" means 2 per cent. and "B" means 1.6 per cent. if the long-term,
            unsecured and unsubordinated debt obligations of Party A (or its
            successor) or any guarantor of Party A's obligations under the
            Agreement are downgraded below "A1" by Moody's, or the short-term,
            unsecured and unsubordinated debt obligations of Party A (or its
            successor) or any guarantor of Party A's obligations under the
            Agreement are downgraded below "Prime-1" by Moody's;

      (ii)  "A" means 2 per cent. and "B" shall be equal to 3.7 per cent. if the
            long-term, unsecured and unsubordinated debt obligations of Party A
            (or its successor) or any guarantor of Party A's obligations under
            the Agreement, are downgraded below "A3" by Moody's, or the short-
            term, unsecured and unsubordinated debt obligations of Party A (or
            its successor) or any guarantor of Party A's obligations under the
            Agreement, are downgraded below "Prime-2" by Moody's; and

      (iii) "A" means 0 per cent. and "B" means 0 per cent. in all other cases.

      S&P Criteria

      "Credit Support Amount" shall mean an amount calculated in accordance with
      the S&P criteria as set out in the S&P Publications.

      Fitch Criteria

      "Credit Support Amount" shall mean at any time for the purposes of the
      Fitch Criteria with respect to a Transferor on a Valuation Date the result
      of the following formula:

            max[MV plus VC multiplied by 105 per cent multiplied by N;0]

      where:

      "max" means maximum;

      "MV" means the Transferee's Exposure;

      "VC" means the applicable volatility cushion at that time determined by
      reference to the table headed "Volatility Cushion (%)" appearing at the
      end of Appendix 2 to the Fitch Criteria (and for such purpose calculating
      the relevant Weighted Average Life

                                       9
<PAGE>

      assuming a zero prepayment rate and zero default rate in relation to the
      Mortgages beneficially owned by Party B); and

      "N" means the Transaction Notional Amount at that time.

      (vi)  Calculations

            Paragraph 3(b) of this Annex shall be amended by inserting the words
            "and shall provide each party (or the other party, if the Valuation
            Agent is a party) with a description in reasonable detail of how
            such calculations were made, upon reasonable request" after the word
            "calculations" in the third line thereof.

      (vii) Demands and Notices

            All demands, specifications and notices under this Annex will be
            made pursuant to Section 12 of this Agreement.

      (viii) Exposure

            For the purpose of calculating Exposure pursuant to the meaning set
            out in Paragraph 10 of the Annex, the Valuation Agent shall, unless
            otherwise agreed in writing by the Rating Agencies, seek two
            quotations from Reference Market-makers; provided that if two
            Reference Market-makers are not available to provide a quotation,
            then fewer than two Reference Market-makers may be used for such
            purpose, and if no Reference Market-maker is available, then the
            Valuation Agent's estimate at mid-market will be used. Where more
            than one quotation is obtained, the quotation representing the
            greatest amount of the Transferee's Exposure shall be used by the
            Valuation Agent.

      (ix)  Paragraph 6

            For the purposes of determining the Credit Support Balance pursuant
            to Paragraph 6, the definition of Value in Paragraph 10 shall be
            amended by deleting the words "multiplied by the applicable
            Valuation Percentage, if any" from sub-paragraphs (i)(A) and (i)(B).

      (x)   Distributions

            "Distributions" has the meaning specified in Paragraph 10, except
            that the words "to which a holder of securities of the same type,
            nominal value, description and amount as such Eligible Credit
            Support would be entitled from time to time" shall be deleted and
            replaced by the words "received by the Transferee in respect of such
            Eligible Credit Support".

            "Distribution Date" has the meaning specified in Paragraph 10,
            except that the words "a holder of such Eligible Credit Support is
            entitled to receive Distributions" shall be deleted and replaced by
            the words "Distributions are received by the Transferee".

                                       10
<PAGE>

      (xi)  Definitions

            As used in this Annex, the following terms shall mean:

            "Cross Currency Transaction" means, if applicable, the
            cross-currency swap rate transaction between Party A and Party B
            entered into pursuant to the Agreement as evidenced by the
            Confirmation;

            "Fitch" means Fitch Ratings Ltd and includes any successors thereto;

            "Interest Rate Transaction" means, if applicable, the interest rate
            swap transaction entered into pursuant to the Agreement between
            Party A and Party B as evidenced by the Confirmation;

            "Moody's" means Moody's Investors Service Limited and includes any
            successors thereto;

            "Rating Agencies" means Moody's, S&P and Fitch;

            "S&P" means Standard & Poor's Rating Services, a division of The
            McGraw-Hill Companies Inc. and includes any successors thereto;

            "Transaction" means the Cross Currency Transaction or the Interest
            Rate Transaction; and

            "Transaction Notional Amount" means in respect of a Valuation Date,
            the Currency Amount applicable to Party A in respect of a Cross
            Currency Swap Transaction, or in respect of an Interest Rate Swap
            Transaction, the Notional Amount of such Interest Rate Swap
            Transaction, each as at such Valuation Date.

                                       11

<PAGE>

                     Barclays Bank PLC Cross-Currency Confirmation (Class 1A1)
                                                                Execution Copy

From:         Barclays Bank PLC
              5, The North Colonnade
              Canary Wharf
              London
              E14 4BB

Attention:    Derivatives Director, Legal Division

To:           Granite Master Issuer plc
              Fifth Floor
              100 Wood Street
              London
              EC2V 7EX

Attention:    Securitisation Team, Risk Operations

                                                               24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Trade Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
and signed for the purposes of identification by Sidley Austin (UK) LLP and
Barclays Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
 will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin (UK) LLP) and Allen & Overy LLP on 19 January 2005 (as the same
may be amended, restated, varied or supplemented from time to time with the
consent of the parties hereto), and the Issuer Master

<PAGE>

Definitions Schedule signed for the purposes of identification by Sidley
Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen & Overy
LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 1,350,000,000 Series
2007-1 Class 1A1 Notes due December 2030.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

Party A:                                     Barclays Bank PLC

Party B:                                     Granite Master Issuer plc.

Trade Date:                                  19 January 2007.

Effective Date:                              24 January 2007.

Termination Date:                            The earlier of (a) the Floating
                                             Rate Payer I Payment Date falling
                                             in December 2030; (b) any other
                                             date on which the Issuer Notes are
                                             redeemed in full accordance with
                                             their terms; and (c) the date on
                                             which the Issuer Security Trustee
                                             has fully enforced the security
                                             under the Issuer Deed of Charge and
                                             distributed the full proceeds
                                             thereof in accordance with the
                                             Issuer Post-Enforcement Priority of
                                             Payments.

Exchange Rate:                               GBP 1.00: USD 1.96.

A. Floating Payments Floating Amounts I:

         Floating Rate Payer I:              Party A.

         Floating Rate Payer I               On any Floating Rate Payer I
         Currency Amount:                    Payment Date, USD 1,350,000,000
                                             less the

                                       2
<PAGE>

                                             aggregate of the Floating Rate
                                             Payer I Interim Exchange Amounts
                                             paid prior to such date.

         Floating Rate Payer I               Each Note Payment Date (as defined
                                             in the

         Payment Dates:                      Conditions).

         Floating Rate Payer I               LIBOR (as defined in the
                                             Conditions).

         Floating Rate Option:

         Floating Rate Payer I               1 month; except in respect of the
                                             initial Designated Maturity:
                                             Calculation Period for which Linear
                                             Interpolation is applicable and in
                                             respect of which the Linear
                                             Interpolation shall be applied by
                                             reference to the 2 week and 1 month
                                             rates.

         Floating Rate Payer I Spread:       0.03 per cent. per annum for the
                                             Calculation Periods up to and
                                             including the Calculation Period
                                             ending on, but excluding, the
                                             Payment Date falling in June 2010;
                                             and thereafter 0.06 per cent. per
                                             annum.

         Floating Rate Payer I               Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I               The first day of each Calculation
                                             Period. Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:             Party B.

         Floating Rate Payer II              On any Floating Rate Payer II
         Currency Amount:                    Payment Date, GBP 688,775,510.20
                                             less the aggregate of the Floating
                                             Rate Payer II Interim Exchange
                                             Amounts paid prior to such date.

         Floating Rate Payer II              The 20th day of each calendar month
                                             in each Payment Dates: year during
                                             the Term from, and including,
                                             February 2007 to, but excluding,
                                             the Termination Date, subject to
                                             adjustment in accordance with the
                                             Following Business Day Convention
                                             and the Termination Date.

         Floating Rate Payer II              GBP-LIBOR-BBA.
         Floating Rate Option:

                                       3
<PAGE>

         Floating Rate Payer II              3 months; except in respect of the
         Designated Maturity:                initial Calculation Period for
                                             which Linear Interpolation is
                                             applicable and in respect of which
                                             the Linear Interpolation shall be
                                             applied by reference to the 1 month
                                             and 2 month rates; or 1 month,
                                             following the occurrence of a
                                             Pass-Through Trigger Event or
                                             Step-Up Date.

         Floating Rate Payer II Spread:      0.0161 per cent. per annum for the
                                             Calculation Periods up to and
                                             including the Calculation Period
                                             ending on, but excluding, the
                                             Payment Date falling in June 2010;
                                             and thereafter 0.1822 per cent. per
                                             annum.

         Floating Rate Payer II              Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II              The first day of each Calculation
                                             Period; Reset Dates: provided
                                             however, that in respect of every
                                             Floating Rate Payer II Calculation
                                             Period (other than the first
                                             Calculation Period and any
                                             Calculation Period following the
                                             occurrence of a Pass-Through
                                             Trigger Event or Step-Up Date) that
                                             does not start on a Quarterly Reset
                                             Date, the Floating Rate in effect
                                             for such Calculation Period shall
                                             be the Floating Rate for the
                                             immediately preceding Floating Rate
                                             Payer II Calculation Period.
                                             Quarterly Reset Date Each Monthly
                                             Payment Date (as defined in the
                                             Conditions) scheduled to fall in
                                             March, June, September and December
                                             starting in March 2007.

Calculation Agent:                           Party A.

Business Days:                               London and New York.

B.    Initial Exchange:

Initial Exchange Date:                       Effective Date.

Party A Initial Exchange Amount:             GBP 688,775,510.20.

                                       4
<PAGE>

Party B Initial Exchange Amount:             USD 1,350,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                      Each Note Payment Date (as defined
                                             in the Conditions) on which a USD
                                             Amortisation Amount is payable.

Floating Rate Payer I                        In respect of an Interim Exchange
Interim Exchange Amount:                     Date, the amount in USD (if any)
                                             equal to the principal amount of
                                             the Issuer Notes required to be so
                                             repaid, prepaid or otherwise
                                             redeemed (howsoever described) in
                                             accordance with the Conditions and
                                             as determined by the Cash Manager
                                             pursuant to the Issuer Cash
                                             Management Agreement; and notified
                                             to the Calculation Agent by the
                                             Issuer Cash Manager pursuant to the
                                             Issuer Cash Management Agreement
                                             (the "USD Amortisation Amount").

Floating Rate Payer II                       In respect of any Interim Exchange
Interim Exchange Amount:                     Date, an amount in GBP equal to the
                                             Floating Rate Payer I Interim
                                             Exchange Amount converted into GBP
                                             at the Exchange Rate.

D.    Final Exchange:

Final Exchange Date:                         The Termination Date.

Floating Rate Payer I                        A USD amount equal to the Floating
Final Exchange Amount:                       Rate Payer II Final Exchange Amount
                                             converted into USD at the Exchange
                                             Rate.

Floating Rate Payer II                       The Floating Rate Payer II Currency
Final Exchange Amount:                       Amount.

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                 Federal Reserve Bank of New York,
                                             New York
                                             ABA No:       026-0025-74
                                             Account:      Barclays Bank plc,
                                                           New York

                                       5
<PAGE>

                                             Favor:        Barclays Swaps &
                                                           Options Group,
                                                           New York
                                             Account No.:  050-01922-8

Account for Payments in GBP:                 Barclays Bank PLC, 54 Lombard
                                             Street London
                                             Sort Code:    20-00-00
                                             Swift:        BARCGB22
                                             Account:      Barclays Swaps
                                             Account No.:  00152021

Payments to Floating Rate Payer II:
Account for Payments in USD:                 Citibank, N.A., New York
                                             SWIFT:       CITIUS33
                                             A/C Citibank, N.A., London
                                             A/C No. 10990765
                                             SWIFT:       CITIGB2L
                                             for further credit to account:
                                             10860263
                                             Ref: GATS/Granite Master Issuer
                                             plc.

Account for Payments in GBP:                 Citibank, N.A., London
                                             A/C No. 10860255
                                             Sort Code 18-50-08
                                             Ref: GATS/Granite Master Issuer
                                             plc.

F.    Notice Details:

Floating Rate Payer I:                       Barclays Bank PLC

         Address:                            5, The North Colonnade
                                             Canary Wharf
                                             London
                                             E14 4BB

         Facsimile Number:                   +44 207 773 4932

         Attention:                          Derivatives Director, Legal
                                             Division

Floating Rate Payer II:                      Granite Master Issuer plc

         Address:                            Fifth Floor
                                             100 Wood Street
                                             London
                                             EC2V 7EX

With a copy to:                              Northern Rock plc
                                             Northern Rock House
                                             Gosforth
                                             Newcastle upon Tyne

                                       6
<PAGE>

                                             NE3 4PL

         Facsimile Number:                   +44 (0)191 279 4929

         Attention:                          Andy McLean / Claire Blackett

With a copy to the                           The Bank of New York
Issuer Security Trustee:

         Address:                            One Canada Square
                                             48th Floor
                                             London
                                             E14 5AL

         Facsimile Number:                   +44 (0)20 7964 6399

G. Offices:                                  The Office of Party A is London.

H. Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party. I. Miscellaneous:

1. It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are not incorporated into this Confirmation and
      the square brackets and words therein are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are not incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

1.3   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

                                       7
<PAGE>

Barclays Bank PLC

By:           /s/ Jonathan Martin

Name:         Jonathan Martin
Title:        Associate Director -
              Legal UK & Europe
              Authorised to Sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:           /s/ Ian Bowden

Name:         Ian Bowden
Title:        Representing L.D.C. Securitisation Director No 1 Limited
              Director

<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 2A1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re: Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 1,450,000,000 Series
2007-1 Class 2A1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                             <C>
Party A:                                        Barclays Bank PLC

Party B:                                        Granite Master Issuer plc.

Trade Date:                                     19 January 2007.

Effective Date:                                 24 January 2007.

Termination Date:                               The earlier of (a) the Floating Rate Payer I Payment
                                                Date falling in December 2054; (b) any other date on
                                                which the Issuer Notes are redeemed in full
                                                accordance with their terms; and (c) the date on
                                                which the Issuer Security Trustee has fully enforced
                                                the security under the Issuer Deed of Charge and
                                                distributed the full proceeds thereof in accordance
                                                with the Issuer Post-Enforcement Priority of
                                                Payments.

Exchange Rate:                                  GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                 Party A.

         Floating Rate Payer I                  On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                       1,450,000,000 less the aggregate of the Floating
                                                Rate Payer I Interim Exchange Amounts paid prior to
                                                such date.

         Floating Rate Payer I                  Each Note Payment Date (as defined in the
         Payment Dates:                         Conditions).

         Floating Rate Payer I                  LIBOR (as defined in the Conditions).
         Floating Rate Option:

         Floating Rate Payer I                  3 months; except in respect of the initial
         Designated Maturity:                   Calculation Period for which Linear Interpolation is
                                                applicable and in respect of which the Linear
                                                Interpolation shall be applied by reference to the 1
                                                month and 2 month rates; or 1 month, in the event
                                                that the frequency of the Floating Rate Payer I
                                                Payment Dates alter to monthly due to the occurrence
                                                of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:          0.07 per cent. per annum for the Calculation Periods
                                                up to and including the Calculation Period ending
                                                on, but excluding, the Payment Date falling in June
                                                2010; and thereafter 0.14 per cent. per annum.

         Floating Rate Payer I                  Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                  The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                Party B.

                                       3
<PAGE>

         Floating Rate Payer II                 On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                       739,795,918.37 less the aggregate of the Floating
                                                Rate Payer II Interim Exchange Amounts paid prior to
                                                such date.

         Floating Rate Payer II                 The 20th day of each calendar month in each year
         Payment Dates:                         during the Term from, and including, February 2007
                                                to, but excluding, the Termination Date, subject to
                                                adjustment in accordance with the Following Business
                                                Day Convention and the Termination Date.

         Floating Rate Payer II                 GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                 3 months; except in respect of the initial
         Designated Maturity:                   Calculation Period for which Linear Interpolation is
                                                applicable and in respect of which the Linear
                                                Interpolation shall be applied by reference to the 1
                                                month and 2 month rates; or 1 month, following the
                                                occurrence of a Pass-Through Trigger Event or
                                                Step-Up Date.

         Floating Rate Payer II Spread:         0.0708 per cent. per annum for the Calculation
                                                Periods up to and including the Calculation Period
                                                ending on, but excluding, the Payment Date falling
                                                in June 2010; and thereafter 0.2916 per cent. per
                                                annum.

         Floating Rate Payer II                 Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                 The first day of each Calculation Period; provided
         Reset Dates:                           however, that in respect of every Floating Rate
                                                Payer II Calculation Period (other than the first
                                                Calculation Period and any Calculation Period
                                                following the occurrence of a Pass-Through Trigger
                                                Event or Step-Up Date) that does not start on a Note
                                                Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                Floating Rate in effect for such Calculation Period
                                                shall be the Floating Rate for the immediately
                                                preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                              Party A.

Business Days:                                  London and New York.

B.    Initial Exchange:

Initial Exchange Date:                          Effective Date.

Party A Initial Exchange Amount:                GBP 739,795,918.37.

Party B Initial Exchange Amount:                USD 1,450,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                         Each Note Payment Date (as defined in the
                                                Conditions) on which a USD Amortisation Amount is
                                                payable.

Floating Rate Payer I                           In respect of an Interim Exchange Date, the amount
Interim Exchange Amount:                        in USD (if any) equal to the principal amount of the
                                                Issuer Notes required to be so repaid, prepaid or
                                                otherwise redeemed (howsoever described) in
                                                accordance with the Conditions and as determined by
                                                the Cash Manager pursuant to the Issuer Cash
                                                Management Agreement; and notified to the
                                                Calculation Agent by the Issuer Cash Manager
                                                pursuant to the Issuer Cash Management Agreement
                                                (the "USD Amortisation Amount").

Floating Rate Payer II                          In respect of any Interim Exchange Date, an amount
Interim Exchange Amount:                        in GBP equal to the Floating Rate Payer I Interim
                                                Exchange Amount converted into GBP at the Exchange
                                                Rate.

                                       5
<PAGE>

D.    Final Exchange:

Final Exchange Date:                            The Termination Date.

Floating Rate Payer I                           A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                          Final Exchange Amount converted into USD at the
                                                Exchange Rate.

Floating Rate Payer II                          The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Federal Reserve Bank of New York, New York
                                               ABA No:           026-0025-74
                                               Account:          Barclays Bank plc, New York
                                               Favor:            Barclays Swaps & Options Group, New
                                                                 York
                                               Account No.:      050-01922-8

Account for Payments in GBP:                   Barclays Bank PLC, 54 Lombard Street London
                                               Sort Code:        20-00-00
                                               Swift:            BARCGB22
                                               Account:          Barclays Swaps
                                               Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT:            CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT:            CITIGB2L
                                               for further credit to account: 10860263
                                               Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08

                                       6
<PAGE>

                                               Ref: GATS/Granite Master Issuer plc.

F.    Notice Details:

Floating Rate Payer I:                         Barclays Bank PLC

         Address:                              5, The North Colonnade
                                               Canary Wharf
                                               London
                                               E14 4BB
         Facsimile Number:                     +44 207 773 4932

         Attention:                            Derivatives Director, Legal Division

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne
                                               NE3 4PL

         Facsimile Number:                     +44 (0)191 279 4929

         Attention:                            Andy McLean / Claire Blackett

With a copy to the                             The Bank of New York
Issuer Security Trustee:

         Address:                              One Canada Square
                                               48th Floor
                                               London
                                               E14 5AL

         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are not incorporated into this Confirmation and
      the square brackets and words therein are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are not incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

1.3   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       8

<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 3A1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 1,500,000,000 Series
2007-1 Class 3A1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                           <C>
Party A:                                      Barclays Bank PLC

Party B:                                      Granite Master Issuer plc.

Trade Date:                                   19 January 2007.

Effective Date:                               24 January 2007.

Termination Date:                             The earlier of (a) the Floating Rate Payer I Payment
                                              Date falling in December 2054; (b) any other date on
                                              which the Issuer Notes are redeemed in full
                                              accordance with their terms; and (c) the date on
                                              which the Issuer Security Trustee has fully enforced
                                              the security under the Issuer Deed of Charge and
                                              distributed the full proceeds thereof in accordance
                                              with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:               Party A.

         Floating Rate Payer I                On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                     1,500,000,000 less the aggregate of the Floating Rate
                                              Payer I Interim Exchange Amounts paid prior to such
                                              date.

         Floating Rate Payer I                Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                3 months; except in respect of the initial
         Designated Maturity:                 Calculation Period for which Linear Interpolation is
                                              applicable and in respect of which the Linear
                                              Interpolation shall be applied by reference to the 1
                                              month and 2 month rates; or 1 month, in the event
                                              that the frequency of the Floating Rate Payer I
                                              Payment Dates alter to monthly due to the occurrence
                                              of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:        0.10 per cent. per annum for the Calculation Periods
                                              up to and including the Calculation Period ending on,
                                              but excluding, the Payment Date falling in June 2012;
                                              and thereafter 0.20 per cent. per annum.

         Floating Rate Payer I                Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:              Party B.

                                       3
<PAGE>

         Floating Rate Payer II               On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                     765,306,122.45 less the aggregate of the Floating
                                              Rate Payer II Interim Exchange Amounts paid prior to
                                              such date.

         Floating Rate Payer II               The 20th day of each calendar month in each year
         Payment Dates:                       during the Term from, and including, February 2007
                                              to, but excluding, the Termination Date, subject to
                                              adjustment in accordance with the Following Business
                                              Day Convention and the Termination Date.

         Floating Rate Payer II               GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II               3 months; except in respect of the initial
         Designated Maturity:                 Calculation Period for which Linear Interpolation is
                                              applicable and in respect of which the Linear
                                              Interpolation shall be applied by reference to the 1
                                              month and 2 month rates; or 1 month, following the
                                              occurrence of a Pass-Through Trigger Event or Step-Up
                                              Date.

         Floating Rate Payer II Spread:       0.1083 per cent. per annum for the Calculation
                                              Periods up to and including the Calculation Period
                                              ending on, but excluding, the Payment Date falling in
                                              June 2012; and thereafter 0.3666 per cent. per annum.

         Floating Rate Payer II               Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II               The first day of each Calculation Period; provided
         Reset Dates:                         however, that in respect of every Floating Rate Payer
                                              II Calculation Period (other than the first
                                              Calculation Period and any Calculation Period
                                              following the occurrence of a Pass-Through Trigger
                                              Event or Step-Up Date) that does not start on a Note
                                              Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                              Floating Rate in effect for such Calculation Period
                                              shall be the Floating Rate for the immediately
                                              preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                            Party A.

Business Days:                                London and New York.

B.       Initial Exchange:

Initial Exchange Date:                        Effective Date.

Party A Initial Exchange Amount:              GBP 765,306,122.45.

Party B Initial Exchange Amount:              USD 1,500,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                       Each Note Payment Date (as defined in the Conditions)
                                              on which a USD Amortisation Amount is payable.

Floating Rate Payer I                         In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                      USD (if any) equal to the principal amount of the
                                              Issuer Notes required to be so repaid, prepaid or
                                              otherwise redeemed (howsoever described) in
                                              accordance with the Conditions and as determined by
                                              the Cash Manager pursuant to the Issuer Cash
                                              Management Agreement; and notified to the Calculation
                                              Agent by the Issuer Cash Manager pursuant to the
                                              Issuer Cash Management Agreement (the "USD
                                              Amortisation Amount").

Floating Rate Payer II                        In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                      GBP equal to the Floating Rate Payer I Interim
                                              Exchange Amount converted into GBP at the Exchange
                                              Rate.

                                       5
<PAGE>

D.    Final Exchange:

Final Exchange Date:                          The Termination Date.

Floating Rate Payer I                         A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                        Final Exchange Amount converted into USD at the
                                              Exchange Rate.

Floating Rate Payer II                        The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                  Federal Reserve Bank of New York, New York
                                              ABA No:           026-0025-74
                                              Account:          Barclays Bank plc, New York
                                              Favor:            Barclays Swaps & Options Group, New
                                                                York
                                              Account No.:      050-01922-8

Account for Payments in GBP:                  Barclays Bank PLC, 54 Lombard Street London
                                              Sort Code:        20-00-00
                                              Swift:            BARCGB22
                                              Account:          Barclays Swaps
                                              Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                  Citibank, N.A., New York
                                              SWIFT:            CITIUS33
                                              A/C Citibank, N.A., London
                                              A/C No. 10990765
                                              SWIFT:            CITIGB2L
                                              for further credit to account: 10860263
                                              Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                  Citibank, N.A., London
                                              A/C No. 10860255
                                              Sort Code 18-50-08

                                       6
<PAGE>

                                              Ref: GATS/Granite Master Issuer plc.

F.    Notice Details:

Floating Rate Payer I:                        Barclays Bank PLC

         Address:                             5, The North Colonnade
                                              Canary Wharf
                                              London
                                              E14 4BB
         Facsimile Number:                    +44 207 773 4932

         Attention:                           Derivatives Director, Legal Division

Floating Rate Payer II:                       Granite Master Issuer plc

         Address:                             Fifth Floor
                                              100 Wood Street
                                              London
                                              EC2V 7EX

With a copy to:                               Northern Rock plc
                                              Northern Rock House
                                              Gosforth
                                              Newcastle upon Tyne
                                              NE3 4PL

         Facsimile Number:                    +44 (0)191 279 4929

         Attention:                           Andy McLean / Claire Blackett

With a copy to the                            The Bank of New York
Issuer Security Trustee:

         Address:                             One Canada Square
                                              48th Floor
                                              London
                                              E14 5AL

         Facsimile Number:                    +44 (0)20 7964 6399

G.       Offices:                             The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are not incorporated into this Confirmation and
      the square brackets and words therein are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are not incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

1.3   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       8
<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 4A1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London

                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London

                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 1,000,000,000 Series
2007-1 Class 4A1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                                <C>
Party A:                                           Barclays Bank PLC

Party B:                                           Granite Master Issuer plc.

Trade Date:                                        19 January 2007.

Effective Date:                                    24 January 2007.

Termination Date:                                  The earlier of (a) the Floating Rate Payer I Payment
                                                   Date falling in December 2054; (b) any other date on
                                                   which the Issuer Notes are redeemed in full
                                                   accordance with their terms; and (c) the date on
                                                   which the Issuer Security Trustee has fully enforced
                                                   the security under the Issuer Deed of Charge and
                                                   distributed the full proceeds thereof in accordance
                                                   with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                     GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                    Party A.

         Floating Rate Payer I                     On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                          1,000,000,000 less the aggregate of the Floating Rate
                                                   Payer I Interim Exchange Amounts paid prior to such
                                                   date.

         Floating Rate Payer I                     Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                     LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                     3 months; except in respect of the initial
         Designated Maturity:                      Calculation Period for which Linear Interpolation is
                                                   applicable and in respect of which the Linear
                                                   Interpolation shall be applied by reference to the 1
                                                   month and 2 month rates; or 1 month, in the event
                                                   that the frequency of the Floating Rate Payer I
                                                   Payment Dates alter to monthly due to the occurrence
                                                   of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:             0.11 per cent. per annum for the Calculation Periods
                                                   up to and including the Calculation Period ending on,
                                                   but excluding, the Payment Date falling in June 2012;
                                                   and thereafter 0.22 per cent. per annum.

         Floating Rate Payer I                     Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                     The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                   Party B.

                                       3
<PAGE>

         Floating Rate Payer II                    On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                          510,204,081.63 less the aggregate of the Floating
                                                   Rate Payer II Interim Exchange Amounts paid prior to
                                                   such date.

         Floating Rate Payer II                    The 20th day of each calendar month in each year
         Payment Dates:                            during the Term from, and including, February 2007
                                                   to, but excluding, the Termination Date, subject to
                                                   adjustment in accordance with the Following Business
                                                   Day Convention and the Termination Date.

         Floating Rate Payer II                    GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                    3 months; except in respect of the initial
         Designated Maturity:                      Calculation Period for which Linear Interpolation is
                                                   applicable and in respect of which the Linear
                                                   Interpolation shall be applied by reference to the 1
                                                   month and 2 month rates; or 1 month, following the
                                                   occurrence of a Pass-Through Trigger Event or Step-Up
                                                   Date.

         Floating Rate Payer II Spread:            0.1215 per cent. per annum for the Calculation
                                                   Periods up to and including the Calculation Period
                                                   ending on, but excluding, the Payment Date falling in
                                                   June 2012; and thereafter 0.3930 per cent. per annum.

         Floating Rate Payer II                    Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                    The first day of each Calculation Period; provided
         Reset Dates:                              however, that in respect of every Floating Rate Payer
                                                   II Calculation Period (other than the first
                                                   Calculation Period and any Calculation Period
                                                   following the occurrence of a Pass-Through Trigger
                                                   Event or Step-Up Date) that does not start on a Note
                                                   Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                   Floating Rate in effect for such Calculation Period
                                                   shall be the Floating Rate for the immediately
                                                   preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                                 Party A.

Business Days:                                     London and New York.

B.       Initial Exchange:

Initial Exchange Date:                             Effective Date.

Party A Initial Exchange Amount:                   GBP 510,204,081.63.

Party B Initial Exchange Amount:                   USD 1,000,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                            Each Note Payment Date (as defined in the Conditions)
                                                   on which a USD Amortisation Amount is payable.

Floating Rate Payer I                              In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                           USD (if any) equal to the principal amount of the
                                                   Issuer Notes required to be so repaid, prepaid or
                                                   otherwise redeemed (howsoever described) in
                                                   accordance with the Conditions and as determined by
                                                   the Cash Manager pursuant to the Issuer Cash
                                                   Management Agreement; and notified to the Calculation
                                                   Agent by the Issuer Cash Manager pursuant to the
                                                   Issuer Cash Management Agreement (the "USD
                                                   Amortisation Amount").

Floating Rate Payer II                             In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                           GBP equal to the Floating Rate Payer I Interim
                                                   Exchange Amount converted into GBP at the Exchange
                                                   Rate.

                                       5
<PAGE>

D.       Final Exchange:

Final Exchange Date:                               The Termination Date.

Floating Rate Payer I                              A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                             Final Exchange Amount converted into USD at the
                                                   Exchange Rate.

Floating Rate Payer II                             The Floating Rate Payer II Currency Amount.
Final Exchange Amount:
</TABLE>

E.       Account Details:

Payments to Floating Rate Payer I:

<TABLE>
<CAPTION>
<S>                                           <C>
Account for Payments in USD:                  Federal Reserve Bank of New York, New York
                                              ABA No:           026-0025-74
                                              Account:          Barclays Bank plc, New York
                                              Favor:            Barclays Swaps & Options
                                                                Group, New York
                                              Account No.:      050-01922-8

Account for Payments in GBP:                  Barclays Bank PLC, 54 Lombard Street London
                                              Sort Code:        20-00-00
                                              Swift:            BARCGB22
                                              Account:          Barclays Swaps
                                              Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                  Citibank, N.A., New York
                                              SWIFT:            CITIUS33
                                              A/C Citibank, N.A., London
                                              A/C No. 10990765
                                              SWIFT:            CITIGB2L
                                              for further credit to account: 10860263
                                              Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                  Citibank, N.A., London
                                              A/C No. 10860255
                                              Sort Code 18-50-08

                                       6
<PAGE>

                                              Ref: GATS/Granite Master Issuer plc.

F.       Notice Details:

Floating Rate Payer I:                        Barclays Bank PLC

         Address:                             5, The North Colonnade
                                              Canary Wharf
                                              London
                                              E14 4BB
         Facsimile Number:                    +44 207 773 4932

         Attention:                           Derivatives Director, Legal Division

Floating Rate Payer II:                       Granite Master Issuer plc

         Address:                             Fifth Floor
                                              100 Wood Street
                                              London
                                              EC2V 7EX

With a copy to:                               Northern Rock plc
                                              Northern Rock House
                                              Gosforth
                                              Newcastle upon Tyne
                                              NE3 4PL

         Facsimile Number:                    +44 (0)191 279 4929

         Attention:                           Andy McLean / Claire Blackett

With a copy to the                            The Bank of New York
Issuer Security Trustee:

         Address:                             One Canada Square
                                              48th Floor
                                              London
                                              E14 5AL

         Facsimile Number:                    +44 (0)20 7964 6399

G.       Offices:                             The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are not incorporated into this Confirmation and
      the square brackets and words therein are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are not incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

1.3   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       8

<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 1B1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 84,000,000 Series 2007-1
Class 1B1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                              <C>
Party A:                                         Barclays Bank PLC

Party B:                                         Granite Master Issuer plc.

Trade Date:                                      19 January 2007.

Effective Date:                                  24 January 2007.

Termination Date:                                The earlier of (a) the Floating Rate Payer I Payment
                                                 Date falling in December 2054; (b) any other date on
                                                 which the Issuer Notes are redeemed in full
                                                 accordance with their terms; and (c) the date on
                                                 which the Issuer Security Trustee has fully enforced
                                                 the security under the Issuer Deed of Charge and
                                                 distributed the full proceeds thereof in accordance
                                                 with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                   GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                  Party A.

         Floating Rate Payer I                   On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                        84,000,000 less the aggregate of the Floating Rate
                                                 Payer I Interim Exchange Amounts paid prior to such
                                                 date.

         Floating Rate Payer I                   Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                   LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                   3 months; except in respect of the initial
         Designated Maturity:                    Calculation Period for which Linear Interpolation is
                                                 applicable and in respect of which the Linear
                                                 Interpolation shall be applied by reference to the 1
                                                 month and 2 month rates; or 1 month, in the event
                                                 that the frequency of the Floating Rate Payer I
                                                 Payment Dates alter to monthly due to the occurrence
                                                 of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:           0.07 per cent. per annum for the Calculation Periods
                                                 up to and including the Calculation Period ending on,
                                                 but excluding, the Payment Date falling in June 2010;
                                                 and thereafter 0.14 per cent. per annum.

         Floating Rate Payer I                   Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                   The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                 Party B.

                                       3
<PAGE>

         Floating Rate Payer II                  On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                        42,857,142.86 less the aggregate of the Floating Rate
                                                 Payer II Interim Exchange Amounts paid prior to such
                                                 date.

         Floating Rate Payer II                  The 20th day of each calendar month in each year
         Payment Dates:                          during the Term from, and including, February 2007
                                                 to, but excluding, the Termination Date, subject to
                                                 adjustment in accordance with the Following Business
                                                 Day Convention and the Termination Date.

         Floating Rate Payer II                  GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                  3 months; except in respect of the initial
         Designated Maturity:                    Calculation Period for which Linear Interpolation is
                                                 applicable and in respect of which the Linear
                                                 Interpolation shall be applied by reference to the 1
                                                 month and 2 month rates; or 1 month, following the
                                                 occurrence of a Pass-Through Trigger Event or Step-Up
                                                 Date.

         Floating Rate Payer II Spread:          0.0698 per cent. per annum for the Calculation
                                                 Periods up to and including the Calculation Period
                                                 ending on, but excluding, the Payment Date falling in
                                                 June 2010; and thereafter 0.2896 per cent. per annum.

         Floating Rate Payer II                  Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                  The first day of each Calculation Period; provided
         Reset Dates:                            however, that in respect of every Floating Rate Payer
                                                 II Calculation Period (other than the first
                                                 Calculation Period and any Calculation Period
                                                 following the occurrence of a Pass-Through Trigger
                                                 Event or Step-Up Date) that does not start on a Note
                                                 Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                 Floating Rate in effect for such Calculation Period
                                                 shall be the Floating Rate for the immediately
                                                 preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                               Party A.

Business Days:                                   London and New York.

B.       Initial Exchange:

Initial Exchange Date:                           Effective Date.

Party A Initial Exchange Amount:                 GBP 42,857,142.86.

Party B Initial Exchange Amount:                 USD 84,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                          Each Note Payment Date (as defined in the Conditions)
                                                 on which a USD Amortisation Amount is payable.

Floating Rate Payer I                            In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                         USD (if any) equal to the principal amount of the
                                                 Issuer Notes required to be so repaid, prepaid or
                                                 otherwise redeemed (howsoever described) in
                                                 accordance with the Conditions and as determined by
                                                 the Cash Manager pursuant to the Issuer Cash
                                                 Management Agreement; and notified to the Calculation
                                                 Agent by the Issuer Cash Manager pursuant to the
                                                 Issuer Cash Management Agreement (the "USD
                                                 Amortisation Amount").

Floating Rate Payer II                           In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                         GBP equal to the Floating Rate Payer I Interim
                                                 Exchange Amount converted into GBP at the Exchange
                                                 Rate.

                                       5
<PAGE>

D.       Final Exchange:

Final Exchange Date:                             The Termination Date.

Floating Rate Payer I                            A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                           Final Exchange Amount converted into USD at the
                                                 Exchange Rate.

Floating Rate Payer II                           The Floating Rate Payer II Currency Amount.
Final Exchange Amount:
</TABLE>

E.       Account Details:

Payments to Floating Rate Payer I:

<TABLE>
<CAPTION>
<S>                                          <C>
Account for Payments in USD:                 Federal Reserve Bank of New York, New York
                                             ABA No:           026-0025-74
                                             Account:          Barclays Bank plc, New York
                                             Favor:            Barclays Swaps & Options
                                                               Group, New York
                                             Account No.:      050-01922-8

Account for Payments in GBP:                 Barclays Bank PLC, 54 Lombard Street London
                                             Sort Code:        20-00-00
                                             Swift:            BARCGB22
                                             Account:          Barclays Swaps
                                             Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                 Citibank, N.A., New York
                                             SWIFT:            CITIUS33
                                             A/C Citibank, N.A., London
                                             A/C No. 10990765
                                             SWIFT:            CITIGB2L
                                             for further credit to account: 10860263
                                             Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                 Citibank, N.A., London
                                             A/C No. 10860255
                                             Sort Code 18-50-08

                                       6
<PAGE>

                                             Ref: GATS/Granite Master Issuer plc.

F.       Notice Details:

Floating Rate Payer I:                       Barclays Bank PLC

         Address:                            5, The North Colonnade
                                             Canary Wharf
                                             London
                                             E14 4BB
         Facsimile Number:                   +44 207 773 4932

         Attention:                          Derivatives Director, Legal Division

Floating Rate Payer II:                      Granite Master Issuer plc

         Address:                            Fifth Floor
                                             100 Wood Street
                                             London
                                             EC2V 7EX

With a copy to:                              Northern Rock plc
                                             Northern Rock House
                                             Gosforth
                                             Newcastle upon Tyne
                                             NE3 4PL
         Facsimile Number:                   +44 (0)191 279 4929

         Attention:                          Andy McLean / Claire Blackett

With a copy to the                           The Bank of New York
Issuer Security Trustee:

         Address:                            One Canada Square
                                             48th Floor
                                             London
                                             E14 5AL

         Facsimile Number:                   +44 (0)20 7964 6399

G.       Offices:                            The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are incorporated into this Confirmation and the
      square brackets are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are incorporated into this Confirmation and
      the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred Amounts and
      the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating Rate
      Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and the
      Floating Amount II Deferred Interest.

2.1   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                       8
<PAGE>

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       9
<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 2B1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 80,000,000 Series 2007-1
Class 2B1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                                                         <C>
Party A:                                                                    Barclays Bank PLC

Party B:                                                                    Granite Master Issuer plc.

Trade Date:                                                                 19 January 2007.

Effective Date:                                                             24 January 2007.

Termination Date:                                                           The earlier of (a) the Floating Rate Payer I Payment
                                                                            Date falling in December 2054; (b) any other date on
                                                                            which the Issuer Notes are redeemed in full
                                                                            accordance with their terms; and (c) the date on
                                                                            which the Issuer Security Trustee has fully enforced
                                                                            the security under the Issuer Deed of Charge and
                                                                            distributed the full proceeds thereof in accordance
                                                                            with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                                              GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                             Party A.

         Floating Rate Payer I                                              On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                                                   80,000,000 less the aggregate of the Floating Rate
                                                                            Payer I Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer I                                              Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                                              LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                                              3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, in the event
                                                                            that the frequency of the Floating Rate Payer I
                                                                            Payment Dates alter to monthly due to the occurrence
                                                                            of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:                                      0.12 per cent. per annum for the Calculation Periods
                                                                            up to and including the Calculation Period ending on,
                                                                            but excluding, the Payment Date falling in June 2010;
                                                                            and thereafter 0.24 per cent. per annum.

         Floating Rate Payer I                                              Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                                              The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                                            Party B.

                                       3
<PAGE>

         Floating Rate Payer II                                             On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                                                   40,816,326.53 less the aggregate of the Floating Rate
                                                                            Payer II Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer II                                             The 20th day of each calendar month in each year
         Payment Dates:                                                     during the Term from, and including, February 2007
                                                                            to, but excluding, the Termination Date, subject to
                                                                            adjustment in accordance with the Following Business
                                                                            Day Convention and the Termination Date.

         Floating Rate Payer II                                             GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                                             3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, following the
                                                                            occurrence of a Pass-Through Trigger Event or Step-Up
                                                                            Date.

         Floating Rate Payer II Spread:                                     0.1289 per cent. per annum for the Calculation
                                                                            Periods up to and including the Calculation Period
                                                                            ending on, but excluding, the Payment Date falling in
                                                                            June 2010; and thereafter 0.4078 per cent. per annum.

         Floating Rate Payer II                                             Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                                             The first day of each Calculation Period; provided
         Reset Dates:                                                       however, that in respect of every Floating Rate Payer
                                                                            II Calculation Period (other than the first
                                                                            Calculation Period and any Calculation Period
                                                                            following the occurrence of a Pass-Through Trigger
                                                                            Event or Step-Up Date) that does not start on a Note
                                                                            Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                                            Floating Rate in effect for such Calculation Period
                                                                            shall be the Floating Rate for the immediately
                                                                            preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                                                          Party A.

Business Days:                                                              London and New York.

B.       Initial Exchange:

Initial Exchange Date:                                                      Effective Date.

Party A Initial Exchange Amount:                                            GBP 40,816,326.53.

Party B Initial Exchange Amount:                                            USD 80,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                                     Each Note Payment Date (as defined in the Conditions)
                                                                            on which a USD Amortisation Amount is payable.

Floating Rate Payer I                                                       In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                                                    USD (if any) equal to the principal amount of the
                                                                            Issuer Notes required to be so repaid, prepaid or
                                                                            otherwise redeemed (howsoever described) in
                                                                            accordance with the Conditions and as determined by
                                                                            the Cash Manager pursuant to the Issuer Cash
                                                                            Management Agreement; and notified to the Calculation
                                                                            Agent by the Issuer Cash Manager pursuant to the
                                                                            Issuer Cash Management Agreement (the "USD
                                                                            Amortisation Amount").

Floating Rate Payer II                                                      In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                                                    GBP equal to the Floating Rate Payer I Interim
                                                                            Exchange Amount converted into GBP at the Exchange
                                                                            Rate.

                                       5
<PAGE>

D.       Final Exchange:

Final Exchange Date:                                                        The Termination Date.

Floating Rate Payer I                                                       A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                                                      Final Exchange Amount converted into USD at the
                                                                            Exchange Rate.

Floating Rate Payer II                                                      The Floating Rate Payer II Currency Amount.
Final Exchange Amount:
</TABLE>

E.       Account Details:

<TABLE>
<CAPTION>
<S>                                                              <C>
Payments to Floating Rate Payer I:

Account for Payments in USD:                                     Federal Reserve Bank of New York, New York
                                                                 ABA No:           026-0025-74
                                                                 Account:          Barclays Bank plc, New York
                                                                 Favor:            Barclays Swaps & Options
                                                                                   Group, New York
                                                                 Account No.:      050-01922-8

Account for Payments in GBP:                                     Barclays Bank PLC, 54 Lombard Street London
                                                                 Sort Code:        20-00-00
                                                                 Swift:            BARCGB22
                                                                 Account:          Barclays Swaps
                                                                 Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                                     Citibank, N.A., New York
                                                                 SWIFT:            CITIUS33
                                                                 A/C Citibank, N.A., London
                                                                 A/C No. 10990765
                                                                 SWIFT:            CITIGB2L
                                                                 for further credit to account: 10860263
                                                                 Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                                     Citibank, N.A., London
                                                                 A/C No. 10860255
                                                                 Sort Code 18-50-08
                                                                 Ref: GATS/Granite Master Issuer plc.

                                       6
<PAGE>

F.       Notice Details:

Floating Rate Payer I:                                           Barclays Bank PLC

         Address:                                                5, The North Colonnade
                                                                 Canary Wharf
                                                                 London
                                                                 E14 4BB

         Facsimile Number:                                       +44 207 773 4932

         Attention:                                              Derivatives Director, Legal Division

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London
                                                                 EC2V 7EX

With a copy to:                                                  Northern Rock plc
                                                                 Northern Rock House
                                                                 Gosforth
                                                                 Newcastle upon Tyne
                                                                 NE3 4PL

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

With a copy to the                                               The Bank of New York

Issuer Security Trustee:
         Address:                                                One Canada Square
                                                                 48th Floor
                                                                 London
                                                                 E14 5AL

         Facsimile Number:                                       +44 (0)20 7964 6399

G.       Offices:                                                The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
 xchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC.  For the purposes
of this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are incorporated into this Confirmation and the
      square brackets are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are incorporated into this Confirmation and
      the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred Amounts and
      the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating Rate
      Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and the
      Floating Amount II Deferred Interest.

2.1   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                       8
<PAGE>

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       9
<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 1M1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 84,000,000 Series 2007-1
Class 1M1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                                                         <C>
Party A:                                                                    Barclays Bank PLC

Party B:                                                                    Granite Master Issuer plc.

Trade Date:                                                                 19 January 2007.

Effective Date:                                                             24 January 2007.

Termination Date:                                                           The earlier of (a) the Floating Rate Payer I Payment
                                                                            Date falling in December 2054; (b) any other date on
                                                                            which the Issuer Notes are redeemed in full
                                                                            accordance with their terms; and (c) the date on
                                                                            which the Issuer Security Trustee has fully enforced
                                                                            the security under the Issuer Deed of Charge and
                                                                            distributed the full proceeds thereof in accordance
                                                                            with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                                              GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                             Party A.

         Floating Rate Payer I                                              On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                                                   84,000,000 less the aggregate of the Floating Rate
                                                                            Payer I Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer I                                              Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                                              LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                                              3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, in the event
                                                                            that the frequency of the Floating Rate Payer I
                                                                            Payment Dates alter to monthly due to the occurrence
                                                                            of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:                                      0.15 per cent. per annum for the Calculation Periods
                                                                            up to and including the Calculation Period ending on,
                                                                            but excluding, the Payment Date falling in June 2010;
                                                                            and thereafter 0.30 per cent. per annum.
         Floating Rate Payer I                                              Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                                              The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                                            Party B.

                                       3
<PAGE>

         Floating Rate Payer II                                             On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                                                   42,857,142.86 less the aggregate of the Floating Rate
                                                                            Payer II Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer II                                             The 20th day of each calendar month in each year
         Payment Dates:                                                     during the Term from, and including, February 2007
                                                                            to, but excluding, the Termination Date, subject to
                                                                            adjustment in accordance with the Following Business
                                                                            Day Convention and the Termination Date.

         Floating Rate Payer II                                             GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                                             3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, following the
                                                                            occurrence of a Pass-Through Trigger Event or Step-Up
                                                                            Date.

         Floating Rate Payer II Spread:                                     0.1589 per cent. per annum for the Calculation
                                                                            Periods up to and including the Calculation Period
                                                                            ending on, but excluding, the Payment Date falling in
                                                                            June 2010; and thereafter 0.4678 per cent. per annum.

         Floating Rate Payer II                                             Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                                             The first day of each Calculation Period; provided
         Reset Dates:                                                       however, that in respect of every Floating Rate Payer
                                                                            II Calculation Period (other than the first
                                                                            Calculation Period and any Calculation Period
                                                                            following the occurrence of a Pass-Through Trigger
                                                                            Event or Step-Up Date) that does not start on a Note
                                                                            Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                                            Floating Rate in effect for such Calculation Period
                                                                            shall be the Floating Rate for the immediately
                                                                            preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                                                          Party A.

Business Days:                                                              London and New York.

B.       Initial Exchange:

Initial Exchange Date:                                                      Effective Date.

Party A Initial Exchange Amount:                                            GBP 42,857,142.86.

Party B Initial Exchange Amount:                                            USD 84,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                                     Each Note Payment Date (as defined in the Conditions)
                                                                            on which a USD Amortisation Amount is payable.

Floating Rate Payer I                                                       In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                                                    USD (if any) equal to the principal amount of the
                                                                            Issuer Notes required to be so repaid, prepaid or
                                                                            otherwise redeemed (howsoever described) in
                                                                            accordance with the Conditions and as determined by
                                                                            the Cash Manager pursuant to the Issuer Cash
                                                                            Management Agreement; and notified to the Calculation
                                                                            Agent by the Issuer Cash Manager pursuant to the
                                                                            Issuer Cash Management Agreement (the "USD
                                                                            Amortisation Amount").

Floating Rate Payer II                                                      In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                                                    GBP equal to the Floating Rate Payer I Interim
                                                                            Exchange Amount converted into GBP at the Exchange
                                                                            Rate.

                                       5
<PAGE>

D.       Final Exchange:

Final Exchange Date:                                                        The Termination Date.

Floating Rate Payer I                                                       A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                                                      Final Exchange Amount converted into USD at the
                                                                            Exchange Rate.

Floating Rate Payer II                                                      The Floating Rate Payer II Currency Amount.
Final Exchange Amount:
</TABLE>

E.       Account Details:

Payments to Floating Rate Payer I:

<TABLE>
<CAPTION>
<S>                                                              <C>
Account for Payments in USD:                                     Federal Reserve Bank of New York, New York
                                                                 ABA No:           026-0025-74
                                                                 Account:          Barclays Bank plc, New York
                                                                 Favor:            Barclays Swaps & Options
                                                                                   Group, New York
                                                                 Account No.:      050-01922-8

Account for Payments in GBP:                                     Barclays Bank PLC, 54 Lombard Street London
                                                                 Sort Code:        20-00-00
                                                                 Swift:            BARCGB22
                                                                 Account:          Barclays Swaps
                                                                 Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                                     Citibank, N.A., New York
                                                                 SWIFT:            CITIUS33
                                                                 A/C Citibank, N.A., London
                                                                 A/C No. 10990765
                                                                 SWIFT:            CITIGB2L
                                                                 for further credit to account: 10860263
                                                                 Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                                     Citibank, N.A., London
                                                                 A/C No. 10860255
                                                                 Sort Code 18-50-08

                                       6
<PAGE>

                                                                 Ref: GATS/Granite Master Issuer plc.

F.       Notice Details:

Floating Rate Payer I:                                           Barclays Bank PLC

         Address:                                                5, The North Colonnade
                                                                 Canary Wharf
                                                                 London
                                                                 E14 4BB
         Facsimile Number:                                       +44 207 773 4932

         Attention:                                              Derivatives Director, Legal Division

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London
                                                                 EC2V 7EX

With a copy to:                                                  Northern Rock plc
                                                                 Northern Rock House
                                                                 Gosforth
                                                                 Newcastle upon Tyne
                                                                 NE3 4PL

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

With a copy to the                                               The Bank of New York
Issuer Security Trustee:

         Address:                                                One Canada Square
                                                                 48th Floor
                                                                 London
                                                                 E14 5AL

         Facsimile Number:                                       +44 (0)20 7964 6399

G.       Offices:                                                The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are incorporated into this Confirmation and the
      square brackets are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are incorporated into this Confirmation and
      the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred Amounts and
      the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating Rate
      Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and the
      Floating Amount II Deferred Interest.

2.1   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                       8
<PAGE>

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       9
<PAGE>

                       Barclays Bank PLC Cross-Currency Confirmation (Class 2M1)
                                                                  Execution Copy

From:             Barclays Bank PLC
                  5, The North Colonnade
                  Canary Wharf
                  London
                  E14 4BB

Attention:        Derivatives Director, Legal Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed to
have entered into an agreement relating to the Issuer Notes on the terms of the
Agreed Form Agreement (the "Agreement") dated as of the Trade Date specified
below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA Credit
Support Annex (Bilateral Form - Transfer) forming part of the Schedule) and
signed for the purposes of identification by Sidley Austin (UK) LLP and Barclays
Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the meanings
given to them in the

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto), and the
Issuer Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen &
Overy LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it conflicts
with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer Trust
Deed), and any reference to a numbered Condition shall be construed accordingly;
and

"Issuer Notes" means the Granite Master Issuer plc USD 80,000,000 Series 2007-1
Class 2M1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

<TABLE>
<CAPTION>
<S>                                                                         <C>
Party A:                                                                    Barclays Bank PLC

Party B:                                                                    Granite Master Issuer plc.

Trade Date:                                                                 19 January 2007.

Effective Date:                                                             24 January 2007.

Termination Date:                                                           The earlier of (a) the Floating Rate Payer I Payment
                                                                            Date falling in December 2054; (b) any other date on
                                                                            which the Issuer Notes are redeemed in full
                                                                            accordance with their terms; and (c) the date on
                                                                            which the Issuer Security Trustee has fully enforced
                                                                            the security under the Issuer Deed of Charge and
                                                                            distributed the full proceeds thereof in accordance
                                                                            with the Issuer Post-Enforcement Priority of Payments.

Exchange Rate:                                                              GBP 1.00: USD 1.96.

                                       2
<PAGE>

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                             Party A.

         Floating Rate Payer I                                              On any Floating Rate Payer I Payment Date, USD
         Currency Amount:                                                   80,000,000 less the aggregate of the Floating Rate
                                                                            Payer I Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer I                                              Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                                              LIBOR (as defined in the Conditions).

         Floating Rate Option:

         Floating Rate Payer I                                              3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, in the event
                                                                            that the frequency of the Floating Rate Payer I
                                                                            Payment Dates alter to monthly due to the occurrence
                                                                            of a Pass-Through Trigger Event or Step-Up Date.

         Floating Rate Payer I Spread:                                      0.25 per cent. per annum for the Calculation Periods
                                                                            up to and including the Calculation Period ending on,
                                                                            but excluding, the Payment Date falling in June 2010;
                                                                            and thereafter 0.50 per cent. per annum.

         Floating Rate Payer I                                              Actual/360.
         Floating Rate Day Count Fraction:

         Floating Rate Payer I                                              The first day of each Calculation Period.
         Reset Dates:

Floating Amounts II:

         Floating Rate Payer II:                                            Party B.

                                       3
<PAGE>

         Floating Rate Payer II                                             On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                                                   40,816,326.53 less the aggregate of the Floating Rate
                                                                            Payer II Interim Exchange Amounts paid prior to such
                                                                            date.

         Floating Rate Payer II                                             The 20th day of each calendar month in each year
         Payment Dates:                                                     during the Term from, and including, February 2007
                                                                            to, but excluding, the Termination Date, subject to
                                                                            adjustment in accordance with the Following Business
                                                                            Day Convention and the Termination Date.

         Floating Rate Payer II                                             GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                                             3 months; except in respect of the initial
         Designated Maturity:                                               Calculation Period for which Linear Interpolation is
                                                                            applicable and in respect of which the Linear
                                                                            Interpolation shall be applied by reference to the 1
                                                                            month and 2 month rates; or 1 month, following the
                                                                            occurrence of a Pass-Through Trigger Event or Step-Up
                                                                            Date.

         Floating Rate Payer II Spread:                                     0.2724 per cent. per annum for the Calculation
                                                                            Periods up to and including the Calculation Period
                                                                            ending on, but excluding, the Payment Date falling in
                                                                            June 2010; and thereafter 0.6948 per cent. per annum.

         Floating Rate Payer II                                             Actual/365 (Fixed).
         Floating Rate Day Count Fraction:

         Floating Rate Payer II                                             The first day of each Calculation Period; provided
         Reset Dates:                                                       however, that in respect of every Floating Rate Payer
                                                                            II Calculation Period (other than the first
                                                                            Calculation Period and any Calculation Period
                                                                            following the occurrence of a Pass-Through Trigger
                                                                            Event or Step-Up Date) that does not start on a Note
                                                                            Payment Date (as defined in the Issuer Notes), the

                                       4
<PAGE>

                                                                            Floating Rate in effect for such Calculation Period
                                                                            shall be the Floating Rate for the immediately
                                                                            preceding Floating Rate Payer II Calculation Period.

Calculation Agent:                                                          Party A.

Business Days:                                                              London and New York.

B.       Initial Exchange:

Initial Exchange Date:                                                      Effective Date.

Party A Initial Exchange Amount:                                            GBP 40,816,326.53.

Party B Initial Exchange Amount:                                            USD 80,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                                     Each Note Payment Date (as defined in the Conditions)
                                                                            on which a USD Amortisation Amount is payable.

Floating Rate Payer I                                                       In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                                                    USD (if any) equal to the principal amount of the
                                                                            Issuer Notes required to be so repaid, prepaid or
                                                                            otherwise redeemed (howsoever described) in
                                                                            accordance with the Conditions and as determined by
                                                                            the Cash Manager pursuant to the Issuer Cash
                                                                            Management Agreement; and notified to the Calculation
                                                                            Agent by the Issuer Cash Manager pursuant to the
                                                                            Issuer Cash Management Agreement (the "USD
                                                                            Amortisation Amount").

Floating Rate Payer II                                                      In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                                                    GBP equal to the Floating Rate Payer I Interim
                                                                            Exchange Amount converted into GBP at the Exchange
                                                                            Rate.

                                       5
<PAGE>

D.       Final Exchange:

Final Exchange Date:                                                        The Termination Date.

Floating Rate Payer I                                                       A USD amount equal to the Floating Rate Payer II
Final Exchange Amount:                                                      Final Exchange Amount converted into USD at the
                                                                            Exchange Rate.

Floating Rate Payer II                                                      The Floating Rate Payer II Currency Amount.
Final Exchange Amount:
</TABLE>

E.       Account Details:

Payments to Floating Rate Payer I:

<TABLE>
<CAPTION>
<S>                                                              <C>
Account for Payments in USD:                                     Federal Reserve Bank of New York, New York
                                                                 ABA No:           026-0025-74
                                                                 Account:          Barclays Bank plc, New York
                                                                 Favor:            Barclays Swaps & Options
                                                                                   Group, New York
                                                                 Account No.:      050-01922-8

Account for Payments in GBP:                                     Barclays Bank PLC, 54 Lombard Street London
                                                                 Sort Code:        20-00-00
                                                                 Swift:            BARCGB22
                                                                 Account:          Barclays Swaps
                                                                 Account No.:      00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                                     Citibank, N.A., New York
                                                                 SWIFT:            CITIUS33
                                                                 A/C Citibank, N.A., London
                                                                 A/C No. 10990765
                                                                 SWIFT:            CITIGB2L
                                                                 for further credit to account: 10860263
                                                                 Ref: GATS/Granite Master Issuer plc.

Account for Payments in GBP:                                     Citibank, N.A., London
                                                                 A/C No. 10860255
                                                                 Sort Code 18-50-08

                                       6
<PAGE>

                                                                 Ref: GATS/Granite Master Issuer plc.

F.       Notice Details:

Floating Rate Payer I:                                           Barclays Bank PLC
         Address:                                                5, The North Colonnade
                                                                 Canary Wharf
                                                                 London
                                                                 E14 4BB

         Facsimile Number:                                       +44 207 773 4932

         Attention:                                              Derivatives Director, Legal Division

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London
                                                                 EC2V 7EX

With a copy to:                                                  Northern Rock plc
                                                                 Northern Rock House
                                                                 Gosforth
                                                                 Newcastle upon Tyne
                                                                 NE3 4PL

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

With a copy to the                                               The Bank of New York
Issuer Security Trustee:

         Address:                                                One Canada Square
                                                                 48th Floor
                                                                 London
                                                                 E14 5AL

         Facsimile Number:                                       +44 (0)20 7964 6399

G.       Offices:                                                The Office of Party A is London.
</TABLE>

                                       7
<PAGE>

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes of
this Additional Termination Event, Party A shall be the sole Affected Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in Part 5(h)(iii) falling after the words
      "will not then fall due" are incorporated into this Confirmation and the
      square brackets are accordingly deleted.

1.2   The words in the square brackets at the end of Part 5(h)(v) falling after
      the words "of any shortfall" are incorporated into this Confirmation and
      the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred Amounts and
      the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating Rate
      Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and the
      Floating Amount II Deferred Interest.

2.1   For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
      Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                       8
<PAGE>

Yours faithfully

Barclays Bank PLC

By:    /s/ Jonathan Martin
       ---------------------
Name:  Jonathan Martin
Title: Associate Director-
       Legal UK & Europe
       Authorised to sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:    /s/ Ian Bowden
       ------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securitisation
       Director No. 1 Limited
       Director

                                       9

<PAGE>

                     Barclays Bank PLC Cross-Currency Confirmation (Class 1C1)
                                                                Execution Copy

From:       Barclays Bank PLC
            5, The North Colonnade
            Canary Wharf
            London
            E14 4BB

Attention:  Derivatives Director, Legal Division

To:         Granite Master Issuer plc
            Fifth Floor
            100 Wood Street
            London
            EC2V 7EX

Attention:  Securitisation Team, Risk Operations

                                                               24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Trade Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
and signed for the purposes of identification by Sidley Austin (UK) LLP and
Barclays Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin (UK) LLP) and Allen & Overy LLP on 19 January 2005 (as the same
may be amended, restated, varied or supplemented from time to time with the
consent of the parties hereto), and the Issuer Master

<PAGE>

Definitions Schedule signed for the purposes of identification by Sidley
Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen & Overy
LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 94,600,000 Series
2007-1 Class 1C1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

Party A:                                    Barclays Bank PLC

Party B:                                    Granite Master Issuer plc.

Trade Date:                                 19 January 2007.

Effective Date:                             24 January 2007.

Termination Date:                           The earlier of (a) the  Floating
                                            Rate Payer I Payment Date falling
                                            in December 2054; (b) any other
                                            date on which the Issuer Notes are
                                            redeemed in full accordance with
                                            their terms; and (c) the date on
                                            which the Issuer Security Trustee
                                            has fully enforced the security
                                            under the Issuer Deed of Charge
                                            and distributed the full proceeds
                                            thereof in accordance with the
                                            Issuer Post-Enforcement Priority
                                            of Payments.

Exchange Rate:                              GBP 1.00: USD 1.96.

A. Floating Payments Floating Amounts I:

      Floating Rate Payer I:                Party A.

      Floating Rate Payer I                 On any  Floating  Rate  Payer  I
      Currency Amount:                      Payment  Date,   USD  94,600,000
                                            less the

                                      2
<PAGE>

                                            aggregate of the Floating Rate
                                            Payer I Interim Exchange Amounts
                                            paid prior to such date.

      Floating Rate Payer I                 Each  Note   Payment   Date  (as
      Payment Dates:                        defined in the Conditions).

      Floating Rate Payer I                 LIBOR   (as   defined   in   the
      Floating Rate Option:                 Conditions).

      Floating Rate Payer I                 3 months;  except in  respect of
      Designated Maturity:                  the initial  Calculation  Period
                                            for which Linear Interpolation is
                                            applicable and in respect of which
                                            the Linear Interpolation shall be
                                            applied by reference to the 1
                                            month and 2 month rates; or 1
                                            month, in the event that the
                                            frequency of the Floating Rate
                                            Payer I Payment Dates alter to
                                            monthly due to the occurrence of a
                                            Pass-Through Trigger Event or
                                            Step-Up Date.

      Floating Rate Payer I Spread:         0.30 per  cent.  per  annum  for
                                            the  Calculation  Periods  up to
                                            and  including  the  Calculation
                                            Period     ending     on,    but
                                            excluding,   the  Payment   Date
                                            falling   in  June   2010;   and
                                            thereafter  0.60 per  cent.  per
                                            annum.

      Floating Rate Payer I                 Actual/360.
      Floating Rate Day Count Fraction:

      Floating Rate Payer I                 The    first    day   of    each
      Reset Dates:                          Calculation Period.

Floating Amounts II:

      Floating Rate Payer II:               Party B.

      Floating Rate Payer II                On any  Floating  Rate  Payer II
      Currency Amount:                      Payment Date, GBP  48,265,306.12
                                            less the aggregate of the Floating
                                            Rate Payer II Interim Exchange
                                            Amounts paid prior to such date.

      Floating Rate Payer II                The  20th  day of each  calendar
      Payment Dates:                        month in each  year  during  the
                                            Term from, and including, February
                                            2007 to, but excluding, the
                                            Termination Date, subject to
                                            adjustment in accordance with the
                                            Following Business Day

                                      3
<PAGE>

                                            Convention and the Termination
                                            Date.

      Floating Rate Payer II                GBP-LIBOR-BBA.
      Floating Rate Option:

      Floating Rate Payer II                3 months;  except in  respect of
      Designated Maturity:                  the initial  Calculation  Period
                                            for which Linear Interpolation is
                                            applicable and in respect of which
                                            the Linear Interpolation shall be
                                            applied by reference to the 1
                                            month and 2 month rates; or 1
                                            month, following the occurrence of
                                            a Pass-Through Trigger Event or
                                            Step-Up Date.

      Floating Rate Payer II Spread:        0.3146  per cent.  per annum for
                                            the  Calculation  Periods  up to
                                            and  including  the  Calculation
                                            Period     ending     on,    but
                                            excluding,   the  Payment   Date
                                            falling   in  June   2010;   and
                                            thereafter  0.7792 per cent. per
                                            annum.

      Floating Rate Payer II                Actual/365 (Fixed).
      Floating Rate Day Count Fraction:

      Floating Rate Payer II                The    first    day   of    each
      Reset Dates:                          Calculation   Period;   provided
                                            however,   that  in  respect  of
                                            every  Floating  Rate  Payer  II
                                            Calculation  Period  (other than
                                            the  first  Calculation   Period
                                            and   any   Calculation   Period
                                            following  the  occurrence  of a
                                            Pass-Through  Trigger  Event  or
                                            Step-Up   Date)  that  does  not
                                            start  on a  Note  Payment  Date
                                            (as   defined   in  the   Issuer
                                            Notes),  the  Floating  Rate  in
                                            effect   for  such   Calculation
                                            Period  shall  be  the  Floating
                                            Rate    for   the    immediately
                                            preceding  Floating  Rate  Payer
                                            II Calculation Period.

Calculation Agent:                          Party A.

Business Days:                              London and New York.

B.    Initial Exchange:

Initial Exchange Date:                      Effective Date.

Party A Initial Exchange Amount:            GBP 48,265,306.12.

                                      4
<PAGE>

Party B Initial Exchange Amount:            USD 94,600,000.

C.    Interim Exchange:

Interim Exchange Dates:                     Each  Note   Payment   Date  (as
                                            defined  in the  Conditions)  on
                                            which a USD Amortisation  Amount
                                            is payable.

Floating Rate Payer I                       In   respect   of   an   Interim
Interim Exchange Amount:                    Exchange  Date,  the  amount  in
                                            USD (if any) equal to the
                                            principal amount of the Issuer
                                            Notes required to be so repaid,
                                            prepaid or otherwise redeemed
                                            (howsoever described) in
                                            accordance with the Conditions and
                                            as determined by the Cash Manager
                                            pursuant to the Issuer Cash
                                            Management Agreement; and notified
                                            to the Calculation Agent by the
                                            Issuer Cash Manager pursuant to
                                            the Issuer Cash Management
                                            Agreement (the "USD Amortisation
                                            Amount").

Floating Rate Payer II                      In   respect   of  any   Interim
Interim Exchange Amount:                    Exchange  Date, an amount in GBP
                                            equal to the Floating Rate Payer I
                                            Interim Exchange Amount converted
                                            into GBP at the Exchange Rate.

D. Final Exchange:
Final Exchange Date:                        The Termination Date.

Floating Rate Payer I                       A  USD   amount   equal  to  the
Final Exchange Amount:                      Floating  Rate  Payer  II  Final
                                            Exchange Amount converted into USD
                                            at the Exchange Rate.

Floating Rate Payer II                      The Floating Rate Payer II
Final Exchange Amount:                      Currency Amount.

E. Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                Federal Reserve Bank of New
                                            York, New York
                                            ABA No:      026-0025-74
                                            Account:     Barclays Bank plc,
                                                         New York

                                      5
<PAGE>

                                            Favor:       Barclays Swaps &
                                                         Options Group, New
                                                         York
                                            Account No.: 050-01922-8

Account for Payments in GBP:                Barclays Bank PLC, 54 Lombard
                                            Street London
                                            Sort Code:   20-00-00
                                            Swift:       BARCGB22
                                            Account:     Barclays Swaps
                                            Account No.: 00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                Citibank, N.A., New York
                                            SWIFT:       CITIUS33
                                            A/C Citibank, N.A., London
                                            A/C No. 10990765
                                            SWIFT:       CITIGB2L
                                            for further credit to account:
                                            10860263
                                            Ref: GATS/Granite Master Issuer
                                            plc.

Account for Payments in GBP:                Citibank, N.A., London
                                            A/C No. 10860255
                                            Sort Code 18-50-08
                                            Ref: GATS/Granite Master Issuer
                                            plc.

F. Notice Details:

Floating Rate Payer I:                      Barclays Bank PLC

      Address:                              5, The North Colonnade
                                            Canary Wharf
                                            London
                                            E14 4BB
      Facsimile Number:                     +44 207 773 4932

      Attention:                            Derivatives Director, Legal
                                            Division

Floating Rate Payer II:                     Granite Master Issuer plc

      Address:                              Fifth Floor
                                            100 Wood Street
                                            London
                                            EC2V 7EX

With a copy to:                             Northern Rock plc
                                            Northern Rock House
                                            Gosforth
                                            Newcastle upon Tyne

                                      6
<PAGE>

                                            NE3 4PL

      Facsimile Number:                     +44 (0)191 279 4929

      Attention:                            Andy McLean / Claire Blackett

With a copy to the                          The Bank of New York
Issuer Security Trustee:

      Address:                              One Canada Square
                                            48th Floor
                                            London
                                            E14 5AL

      Facsimile Number:                     +44 (0)20 7964 6399

G. Offices:                                 The Office of Party A is London.

H. Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.   It is understood and agreed that in the Schedule to the Agreement:

1.1  The words in the square brackets in Part 5(h)(iii) falling after the
     words "will not then fall due" are incorporated into this Confirmation
     and the square brackets are accordingly deleted.

1.2  The words in the square brackets at the end of Part 5(h)(v) falling after
     the words "of any shortfall" are incorporated into this Confirmation and
     the square brackets are accordingly deleted.

2.   If the payment of any Floating Amount I is deferred in accordance with
     Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
     deferred (the "Floating Amount I Deferred Amount") shall, subject to the
     terms of this Confirmation, be payable on the next Floating Rate Payer I
     Payment Date (the "Floating Amount I Deferred Payment Date") (together
     with interest thereon (the "Floating Amount I Deferred Interest") at the
     Floating Rate Payer I Floating Rate for the relevant Calculation Period)
     and the Floating Amount I due on such Floating Amount I Deferred Payment
     Date shall be deemed to include the Floating Amount I Deferred Amounts
     and the Floating Amount I Deferred Interest.

     If the payment of any Floating Amount II is deferred in accordance with
     Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
     Amount II

                                      7
<PAGE>

     Deferred Amount") shall, subject to the terms of this Confirmation, be
     payable on the next Floating Rate Payer II Payment Date (the "Floating
     Amount II Deferred Payment Date") (together with interest thereon (the
     "Floating Amount II Deferred Interest") at the Floating Rate Payer II
     Floating Rate for the relevant Calculation Period) and the Floating
     Amount II due on such Floating Amount II Deferred Payment Date shall be
     deemed to include the Floating Amount II Deferred Amounts and the
     Floating Amount II Deferred Interest.

2.1  For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
     Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Barclays Bank PLC

By:      /s/ Jonathan Martin

Name:    Jonathan Martin
Title:   Associate Director -
         Legal UK & Europe
         Authorised to Sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:      /s/ Ian Bowden

Name:    Ian Bowden
Title:   Representing L.D.C. Securitisation Director No 1 Limited
         Director

                                      8

<PAGE>

                     Barclays Bank PLC Cross-Currency Confirmation (Class 2C1)
                                                                Execution Copy

From:       Barclays Bank PLC
            5, The North Colonnade
            Canary Wharf
            London
            E14 4BB

Attention:  Derivatives Director, Legal Division

To:         Granite Master Issuer plc
            Fifth Floor
            100 Wood Street
            London
            EC2V 7EX

Attention:  Securitisation Team, Risk Operations

                                                               24 January 2007

Dear Sirs,

Re:   Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Trade Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
and signed for the purposes of identification by Sidley Austin (UK) LLP and
Barclays Bank PLC on 23 January 2007.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin (UK) LLP) and Allen & Overy LLP on 19 January 2005 (as the same
may be amended, restated, varied or supplemented from time to time with the
consent of the parties hereto), and the Issuer Master

<PAGE>

Definitions Schedule signed for the purposes of identification by Sidley
Austin Brown & Wood (now known as Sidley Austin (UK) LLP) and Allen & Overy
LLP on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 19 January 2007 and the Final Terms dated 22 January
2007 (as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 30,000,000 Series
2007-1 Class 2C1 Notes due December 2054.

1     The terms of the particular Swap Transaction to which this Confirmation
      relates are as follows:

Party A:                                    Barclays Bank PLC

Party B:                                    Granite Master Issuer plc.

Trade Date:                                 19 January 2007.

Effective Date:                             24 January 2007.

Termination Date:                           The earlier of (a) the  Floating
                                            Rate Payer I Payment Date falling
                                            in December 2054; (b) any other
                                            date on which the Issuer Notes are
                                            redeemed in full accordance with
                                            their terms; and (c) the date on
                                            which the Issuer Security Trustee
                                            has fully enforced the security
                                            under the Issuer Deed of Charge
                                            and distributed the full proceeds
                                            thereof in accordance with the
                                            Issuer Post-Enforcement Priority
                                            of Payments.

Exchange Rate:                              GBP 1.00: USD 1.96.

A. Floating Payments Floating Amounts I:

      Floating Rate Payer I:                Party A.

      Floating Rate Payer I                 On any  Floating  Rate  Payer  I
      Currency Amount:                      Payment  Date,   USD  30,000,000
                                            less the

                                      2
<PAGE>

                                            aggregate of the Floating Rate
                                            Payer I Interim Exchange Amounts
                                            paid prior to such date.

      Floating Rate Payer I                 Each  Note   Payment   Date  (as
      Payment Dates:                        defined in the Conditions).

      Floating Rate Payer I                 LIBOR   (as   defined   in   the
      Floating Rate Option:                 Conditions).

      Floating Rate Payer I                 3 months;  except in  respect of
      Designated Maturity:                  the initial  Calculation  Period
                                            for which Linear Interpolation is
                                            applicable and in respect of which
                                            the Linear Interpolation shall be
                                            applied by reference to the 1
                                            month and 2 month rates; or 1
                                            month, in the event that the
                                            frequency of the Floating Rate
                                            Payer I Payment Dates alter to
                                            monthly due to the occurrence of a
                                            Pass-Through Trigger Event or
                                            Step-Up Date.

      Floating Rate Payer I Spread:         0.43 per  cent.  per  annum  for
                                            the  Calculation  Periods  up to
                                            and  including  the  Calculation
                                            Period     ending     on,    but
                                            excluding,   the  Payment   Date
                                            falling   in  June   2010;   and
                                            thereafter  0.86 per  cent.  per
                                            annum.

      Floating Rate Payer I                 Actual/360.
      Floating Rate Day Count Fraction:

      Floating Rate Payer I                 The    first    day   of    each
      Reset Dates:                          Calculation Period.

Floating Amounts II:

      Floating Rate Payer II:               Party B.

      Floating Rate Payer II                On any  Floating  Rate  Payer II
      Currency Amount:                      Payment Date, GBP  15,306,122.45
                                            less the aggregate of the Floating
                                            Rate Payer II Interim Exchange
                                            Amounts paid prior to such date.

      Floating Rate Payer II                The  20th  day of each  calendar
      Payment Dates:                        month in each  year  during  the
                                            Term from, and including, February
                                            2007 to, but excluding, the
                                            Termination Date, subject to
                                            adjustment in accordance with the
                                            Following Business Day

                                      3
<PAGE>

                                            Convention and the Termination
                                            Date.

      Floating Rate Payer II                GBP-LIBOR-BBA.
      Floating Rate Option:

      Floating Rate Payer II                3 months;  except in  respect of
      Designated Maturity:                  the initial  Calculation  Period
                                            for which Linear Interpolation is
                                            applicable and in respect of which
                                            the Linear Interpolation shall be
                                            applied by reference to the 1
                                            month and 2 month rates; or 1
                                            month, following the occurrence of
                                            a Pass-Through Trigger Event or
                                            Step-Up Date.

      Floating Rate Payer II Spread:        0.4637  per cent.  per annum for
                                            the  Calculation  Periods  up to
                                            and  including  the  Calculation
                                            Period     ending     on,    but
                                            excluding,   the  Payment   Date
                                            falling   in  June   2010;   and
                                            thereafter  1.0774 per cent. per
                                            annum.

      Floating Rate Payer II                Actual/365 (Fixed).
      Floating Rate Day Count Fraction:

      Floating Rate Payer II                The    first    day   of    each
      Reset Dates:                          Calculation   Period;   provided
                                            however,   that  in  respect  of
                                            every  Floating  Rate  Payer  II
                                            Calculation  Period  (other than
                                            the  first  Calculation   Period
                                            and   any   Calculation   Period
                                            following  the  occurrence  of a
                                            Pass-Through  Trigger  Event  or
                                            Step-Up   Date)  that  does  not
                                            start  on a  Note  Payment  Date
                                            (as   defined   in  the   Issuer
                                            Notes),  the  Floating  Rate  in
                                            effect   for  such   Calculation
                                            Period  shall  be  the  Floating
                                            Rate    for   the    immediately
                                            preceding  Floating  Rate  Payer
                                            II Calculation Period.

Calculation Agent:                          Party A.

Business Days:                              London and New York.

B.    Initial Exchange:

Initial Exchange Date:                      Effective Date.

Party A Initial Exchange Amount:            GBP 15,306,122.45.

                                      4
<PAGE>

Party B Initial Exchange Amount:            USD 30,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                     Each  Note   Payment   Date  (as
                                            defined  in the  Conditions)  on
                                            which a USD Amortisation  Amount
                                            is payable.

Floating Rate Payer I                       In   respect   of   an   Interim
Interim Exchange Amount:                    Exchange  Date,  the  amount  in
                                            USD (if any) equal to the
                                            principal amount of the Issuer
                                            Notes required to be so repaid,
                                            prepaid or otherwise redeemed
                                            (howsoever described) in
                                            accordance with the Conditions and
                                            as determined by the Cash Manager
                                            pursuant to the Issuer Cash
                                            Management Agreement; and notified
                                            to the Calculation Agent by the
                                            Issuer Cash Manager pursuant to
                                            the Issuer Cash Management
                                            Agreement (the "USD Amortisation
                                            Amount").

Floating Rate Payer II                      In   respect   of  any   Interim
Interim Exchange Amount:                    Exchange  Date, an amount in GBP
                                            equal to the Floating Rate Payer I
                                            Interim Exchange Amount converted
                                            into GBP at the Exchange Rate.

D. Final Exchange:

Final Exchange Date:                        The Termination Date.

Floating Rate Payer I                       A  USD   amount   equal  to  the
Final Exchange Amount:                      Floating  Rate  Payer  II  Final
                                            Exchange Amount converted into USD
                                            at the Exchange Rate.

Floating Rate Payer II                      The Floating Rate Payer II
Final Exchange Amount:                      Currency Amount.

E. Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                Federal Reserve Bank of New
                                            York, New York
                                            ABA No:      026-0025-74
                                            Account:     Barclays Bank plc,
                                                         New York

                                      5
<PAGE>

                                            Favor:       Barclays Swaps &
                                                         Options Group, New
                                                         York
                                            Account No.: 050-01922-8

Account for Payments in GBP:                Barclays Bank PLC, 54 Lombard
                                            Street London
                                            Sort Code:   20-00-00
                                            Swift:       BARCGB22
                                            Account:     Barclays Swaps
                                            Account No.: 00152021

Payments to Floating Rate Payer II:

Account for Payments in USD:                Citibank, N.A., New York
                                            SWIFT:       CITIUS33
                                            A/C Citibank, N.A., London
                                            A/C No. 10990765
                                            SWIFT:       CITIGB2L
                                            for further credit to account:
                                            10860263
                                            Ref: GATS/Granite Master Issuer
                                            plc.

Account for Payments in GBP:                Citibank, N.A., London
                                            A/C No. 10860255
                                            Sort Code 18-50-08
                                            Ref: GATS/Granite Master Issuer
                                            plc.

F. Notice Details:

Floating Rate Payer I:                      Barclays Bank PLC

      Address:                              5, The North Colonnade
                                            Canary Wharf
                                            London
                                            E14 4BB
      Facsimile Number:                     +44 207 773 4932

      Attention:                            Derivatives Director, Legal
                                            Division

Floating Rate Payer II:                     Granite Master Issuer plc

      Address:                              Fifth Floor
                                            100 Wood Street
                                            London
                                            EC2V 7EX

With a copy to:                             Northern Rock plc
                                            Northern Rock House
                                            Gosforth
                                            Newcastle upon Tyne

                                      6
<PAGE>

                                            NE3 4PL

      Facsimile Number:                     +44 (0)191 279 4929

      Attention:                            Andy McLean / Claire Blackett

With a copy to the                          The Bank of New York
Issuer Security Trustee:

      Address:                              One Canada Square
                                            48th Floor
                                            London
                                            E14 5AL

      Facsimile Number:                     +44 (0)20 7964 6399

G. Offices: The Office of Party A is London.

H. Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.   It is understood and agreed that in the Schedule to the Agreement:

1.1  The words in the square brackets in Part 5(h)(iii) falling after the
     words "will not then fall due" are incorporated into this Confirmation
     and the square brackets are accordingly deleted.

1.2  The words in the square brackets at the end of Part 5(h)(v) falling after
     the words "of any shortfall" are incorporated into this Confirmation and
     the square brackets are accordingly deleted.

2.   If the payment of any Floating Amount I is deferred in accordance with
     Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
     deferred (the "Floating Amount I Deferred Amount") shall, subject to the
     terms of this Confirmation, be payable on the next Floating Rate Payer I
     Payment Date (the "Floating Amount I Deferred Payment Date") (together
     with interest thereon (the "Floating Amount I Deferred Interest") at the
     Floating Rate Payer I Floating Rate for the relevant Calculation Period)
     and the Floating Amount I due on such Floating Amount I Deferred Payment
     Date shall be deemed to include the Floating Amount I Deferred Amounts
     and the Floating Amount I Deferred Interest.

     If the payment of any Floating Amount II is deferred in accordance with
     Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
     Amount II

                                      7
<PAGE>

     Deferred Amount") shall, subject to the terms of this Confirmation, be
     payable on the next Floating Rate Payer II Payment Date (the "Floating
     Amount II Deferred Payment Date") (together with interest thereon (the
     "Floating Amount II Deferred Interest") at the Floating Rate Payer II
     Floating Rate for the relevant Calculation Period) and the Floating
     Amount II due on such Floating Amount II Deferred Payment Date shall be
     deemed to include the Floating Amount II Deferred Amounts and the
     Floating Amount II Deferred Interest.

2.1  For the avoidance of doubt, Part 5(h)(iii) applies to payments under this
     Confirmation.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Barclays Bank PLC

By:      /s/ Jonathan Martin

Name:    Jonathan Martin
Title:   Associate Director -
         Legal UK & Europe
         Authorised to Sign

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:      /s/ Ian Bowden

Name:    Ian Bowden
Title:   Representing L.D.C. Securitisation Director No 1 Limited
         Director

                                      8

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