Document:

EXHIBIT 10.2.4

                                                         Series 1 Class C Notes

(Multicurrency - Cross Border)

                                      ISDA(R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                          dated as of 23 September 2002

CDC IXIS Capital Markets ("Party A")
------------------------------------

                                    and

                                       The Bank of New York (the "Note Trustee")
                                       Granite Mortgages 02-2 plc ("Party B").
                                        ---------------------------------------

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

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

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

      (v) ADDITIONAL TERMINATION EVENT. If 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)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

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

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

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

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

      (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)(1) 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 specifying any
      amount payable under Section 6(e)) and (2) giving details of the relevant
      account to which any amount payable to it is to be paid. In the absence of
      written confirmation from the source of a quotation obtained in
      determining a Market Quotation, the records of the party obtaining such
      quotation will be conclusive evidence of the existence and accuracy of
      such quotation.

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

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

      (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
      of Default: --

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

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

            (3) Second Method and 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 (II) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to Y; and

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

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

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

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

                                       10                           ISDA(R) 1992

<PAGE>

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 the 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 1(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 from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

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

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

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

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

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

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

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

                                       14                           ISDA(R) 1992

<PAGE>

"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)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 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.

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

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

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

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

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

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

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

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

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

                                       17                           ISDA(R) 1992

<PAGE>

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.

CDC IXIS Capital Markets                       Granite Mortgages 02-2 plc,
being Party A                                  being Party B
---------------------------------------        ---------------------------------
         (Name of Party)                                 (Name of Party)

By: ...................................        By: .............................
    Name:                                          Name:
    Title:                                         Title:
    Date:                                          Date:

                                               The Bank of New York
                                               being the Note Trustee
By: ...................................        ---------------------------------
    Name:                                                (Name of Party)
    Title:
    Date:

                                               By: .............................
                                                   Name:
                                                   Title:
                                                   Date:

                                       18                           ISDA(R) 1992

<PAGE>

                                                       (SERIES 1 CLASS C NOTES)

                                    SCHEDULE

                                     TO THE

                                MASTER AGREEMENT

                         dated as of 23 September, 2002

between

(1)      CDC IXIS CAPITAL MARKETS ("PARTY A");

(2)      GRANITE MORTGAGES 02-2 plc ("PARTY B"); and

(3)      THE BANK OF NEW YORK (as Note Trustee and which has agreed to become a
         party to this Agreement solely for the purpose of taking the benefit of
         Parts 5(c) and (h) of the Schedule to this Agreement).

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.

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

(d)      The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) will
         apply to Party A and will not apply to Party B.

                                       1

<PAGE>

(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 purposes of Section 6(e) of this
         Agreement:-

         (i)      Market Quotation will apply.

         (ii)     The Second Method will apply.

(g)      "TERMINATION CURRENCY" means Sterling.

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, Party A makes the representation specified below (the
         "ADDITIONAL TAX REPRESENTATION"):-

         (i)  it is a party to each Transaction solely for the purposes of a
              trade (or part of a trade) carried on by it in the United Kingdom
              through a branch or agency; or

         (ii) it is resident in the United Kingdom or in a jurisdiction with
              which the United Kingdom has a double tax treaty which makes
              provision, whether for relief or otherwise, in relation to
              interest.

(c)      ADDITIONAL TERMINATION EVENT. The Additional Tax Representation proves
         to have been incorrect or misleading in any material respect with
         respect to one or more Transactions (each an "Affected Transaction" for
         the purposes of this Additional Termination Event) when made or
         repeated or deemed to have been made or repeated. The Affected Party
         shall be Party A only.

                                       2

<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      FORM/DOCUMENT/               DATE BY WHICH TO BE
         DELIVER DOCUMENT       CERTIFICATE                  DELIVERED
         ----------------       -------------                -------------------
         <S>                    <C>                          <C>

                                None

(b)      Other documents to be delivered are:-

<CAPTION>

         PARTY REQUIRED                                                               COVERED BY
         TO DELIVER           FORM/DOCUMENT/                 DATE BY WHICH            SECTION 3(D)
         DOCUMENT             CERTIFICATE                    TO BE DELIVERED          REPRESENTATION
         --------------       --------------                 ---------------          --------------
         <S>                  <C>                            <C>                      <C>
         Party A and          Appropriate                    On signing of            Yes
         Party B              evidence of                    this Agreement
                              its signatory's
                              authority

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

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

         Party B              Legal opinion of the           On signing of            No
                              counsel to Party B             this Agreement
                              in form and substance
                              satisfactory to Party A
</TABLE>

                                       3

<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:          CDC IXIS Capital Markets
                           Cannon Bridge
                           25 Dowgate Hill
                           London EC4R 2GN

         Attention:        Guillaume Barrier (Head of Strategic Credit) and
                           Brett Townsend/John Powell (Derivative Sales)

         Facsimile No.:    0207 648 6901

         Telephone No.:    0207 648 6900

         With a copy to:   CDC IXIS Capital Markets
                           56, rue de Lille
                           75356 Paris

         Attention:        Emmanuel Baud (Joint Head of Derivative Products BO)

         Facsimile No.:    + 33 1 4049 1301

         Telephone No.:    + 33 1 4049 3906

         Attention:        Sophie Gallouin (Head of Derivative Products BO)

         Facsimile No.:    + 33 1 4049 1301

         Telephone No.:    + 33 1 4049 2018

         Address for notices or communications to Party B:-

         Address:          Granite Mortgages 02-2 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

                                       4

<PAGE>

         Attention:        Keith M. Currie

         Facsimile No.:    0191 279 4694

         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.:    020 7964 6061

(b)      PROCESS AGENT.  For this purpose of Section 13(c) of this Agreement:-

         Party A appoints as its Process Agent:  none.

         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
         each Confirmation.

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

         In respect of Party A:     None.

         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.

                                       5

<PAGE>

(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.

(ii)     "AFFILIATE" will have the meaning specified in Section 14 of this
         Agreement.

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 Master Definitions
         Schedule as amended and restated by (and appearing in Appendix 1 to)
         the Master Definitions Schedule Third Amendment Deed executed by, among
         others, the Note Trustee on 23 September 2002 and the Issuer Master
         Definitions Schedule signed for the purposes of identification by
         Sidley Austin Brown & Wood and Allen & Overy on 23 September, 2002 (as
         the same have been and may be amended, varied or supplemented from time
         to time with the consent of the parties hereto). The Issuer Master
         Definitions Schedule specified above shall prevail to the extent that
         it conflicts with the Master Definitions Schedule.

(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.

         (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 Note
         Trustee (or any successor thereto) pursuant to and in accordance with
         the Current Issuer Deed of Charge and acknowledges notice of such
         assignment. Each of the parties hereby confirms and agrees that the
         Note Trustee shall not be liable for any of the obligations of Party B
         hereunder.

(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),(7) and (9).

                                       6

<PAGE>

(e)      DISAPPLICATION OF CERTAIN TERMINATION EVENTS

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

(f)      ADDITIONAL EVENT OF DEFAULT

         The following shall constitute an additional Event of Default:

         "NOTE ENFORCEMENT NOTICE. The Note Trustee serves a Note Enforcement
         Notice on Party B (in which case Party B shall be the Defaulting
         Party)."

(g)      NORTHERN ROCK PLC AS PARTY B'S AGENT

         Party B hereby declares that pursuant to the Current 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 Current
         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 agrees with Party B and the Note Trustee to be bound by
               the terms of the Current Issuer Deed of Charge and the Current
               Issuer Cash Management Agreement and, in particular, confirms
               that: (i) no sum shall be payable by or on behalf of Party B to
               it except in accordance with the Current Issuer Priority of
               Payments as set out in the Current Issuer Cash Management
               Agreement or, as applicable, the Current Issuer Deed of Charge
               (as the same may be amended from time to time); and (ii) it will
               not take any steps for the winding up, dissolution or
               reorganisation 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 Current 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 Current Issuer Priority of Payments,
               the Current Issuer Cash Management Agreement and/or, as
               applicable the Current Issuer Deed of Charge.

         (iii) If, on any date, Party B does not pay the full amount it would
               otherwise owe under any Transaction (including, for the avoidance
               of doubt, any related Conditional Transactions, and after the
               application of Section 2(c) to such Transaction) because of the
               limitation contained in clause (i) of this paragraph (h),

                                       7

<PAGE>

               then (i) payment by Party B of the shortfall will not then fall
               due but will instead be deferred until the first Payment Date
               thereafter on which sufficient funds are available (subject to
               the limitation in clause (i) of this paragraph (h)), (ii) failure
               by Party B to make the full payment under such Transaction
               (including, for the avoidance of doubt, any related Conditional
               Transactions, and 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 (iii) 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 absent such limitation.

          (iv) For the avoidance of doubt, if an Early Termination Date results
               from an Event of Default, any amount payable (the payment of
               which was deferred or not paid in the circumstances described
               under clause (iii) of this Part 5(h) 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.

(i)      SCOPE OF AGREEMENT

         It is hereby understood and agreed that the provisions of this
         Agreement shall only apply to the Transactions (including, for the
         avoidance of doubt, the Conditional Transactions) entered into between
         Party A and Party B on the date as of which this Agreement is made as
         evidenced by the Confirmation substantially in the form attached hereto
         as Appendix A, and that no other Transaction may be entered into
         pursuant hereto except in accordance with sub-paragraphs
         (i)(A),(ii)(D), (iii)(D) or (iv)(A) of Part 5(k) or where the Rating
         Agencies have confirmed in writing that the then current ratings of the
         Current 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 throughout the
         course of any Transaction) that it is an authorised person for the
         purposes of the Financial Services and Markets Act 2000.

(k)      RATINGS DOWNGRADE OF PARTY A

         (i)  In the event that the long-term, unsecured and unsubordinated
              debt obligations of Party A (or its successor), or any Credit
              Support Provider of Party A, cease to be rated at least as high
              as "AA-" (or its equivalent) by Standard & Poor's Rating
              Services, a division of The McGraw-Hill Companies Inc. ("S&P")
              and as a result of such downgrade the then current rating of the
              Notes may in the reasonable opinion of S&P be downgraded or
              placed under review for possible downgrade, then Party A shall,
              within 30 days of the occurrence of such downgrade, at its own
              cost either:-

                                       8

<PAGE>

              (A)  put in place an appropriate mark-to-market collateral
                   agreement, (which may be based on the credit support
                   documentation published by ISDA, or otherwise, and relates
                   to collateral in the form of cash or securities or both) in
                   support of its obligations under this Agreement provided
                   that (x) Party A shall be deemed to have satisfied the
                   requirements of S&P if the amount of collateral agreed to be
                   provided in the form of cash and/or securities (the
                   "COLLATERAL AMOUNT") is determined on a basis which is no
                   more onerous than the S&P Criteria (as defined below) and
                   (y) the Collateral Amount shall not be required to exceed
                   such amount as would be required (in accordance with the S&P
                   Criteria) to restore the rating of the Notes to the level
                   they would have been at immediately prior to such
                   downgrading; 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 obligations are rated at
                   least as high as "AA-" (or its equivalent) by S&P or such
                   other rating as is commensurate with the rating assigned to
                   the Notes by S&P from time to time; or

              (C)  procure another person to become co-obligor in respect of
                   the obligations of Party A under this Agreement whose
                   long-term, unsecured and unsubordinated debt obligations are
                   rated at least as high as "AA-" (or its equivalent) by S&P
                   or such other rating as is commensurate with the rating
                   assigned to the 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 Notes then outstanding following
                   the taking of such action being rated no lower than the
                   rating of the Notes immediately prior to such downgrade.

         "S&P CRITERIA" means the criteria published in January 1999 as amended
         in June 2000 which enable entities rated lower than a specified level
         to participate in structured finance transactions which, through
         collateralisation, are rated at a higher level (as referred to, in
         part, in the article entitled New Interest Rate Currency Swap Criteria
         Broadens Allowable Counterparties in the January 1999 issue of S&P's
         Structured Finance publication).

(ii)     In the event that (aa) the long-term, unsecured and unsubordinated debt
         obligations of Party A (or its successor) and, if relevant, any Credit
         Support Provider of Party A, cease to be rated at least as high as "A1"
         (or its equivalent) by Moody's Investors Service Limited ("MOODY'S") or
         (bb) the short-term, unsecured and unsubordinated debt obligations of
         Party A (or its successor) and, if relevant, any Credit Support
         Provider of Party A, cease to be rated at least as high as "Prime-1"
         (or its equivalent) by Moody's and as a result of such downgrade the
         then current ratings of the Notes may in the opinion of Moody's be
         downgraded or placed under review for possible downgrade (such
         downgrade or, as applicable, placing under review for downgrade being a
         "NOTE DOWNGRADE

                                       9

<PAGE>

         EVENT"), then Party A will, 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 in relation to whom Moody's has confirmed that there would
              be no Note Downgrade Event;or

         (B)  procure another person to become co-obligor in respect of the
              obligations of Party A under this Agreement. Such co-obligor 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 in
              relation to whom Moody's has confirmed that there would be no
              Note Downgrade Event; or

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

         Pending compliance with any of (ii)(A), (ii)(B) or (ii)(C) above,
         Party A will, at its own cost:

         (D)  within 30 days of the occurrence of such downgrade, put in place
              a mark-to-market collateral agreement in a form and substance
              acceptable to Moody's (which may be based on the credit support
              documentation published by ISDA, or otherwise, and relates to
              collateral in the form of cash or securities or both) in support
              of its obligations under this Agreement which complies with
              Moody's Criteria (or such other amount as may be agreed with
              Moody's).

         If any of (ii)(A), (ii)(B) or (ii)(C) are satisfied at any time, all
         collateral (or the equivalent thereof, as appropriate) transferred by
         Party A pursuant to (ii)(D) will be retransferred to Party A and Party
         A will not be required to transfer any additional collateral.

(iii)    In the event that (aa) the long-term, unsecured and unsubordinated debt
         obligations of Party A (or its successor) and, if relevant, any Credit
         Support Provider of Party A, cease to be rated at least as high as "A3"
         (or its equivalent) by Moody's or (bb) the short-term, unsecured and
         unsubordinated debt obligations of Party A (or its successor) and, if
         relevant, any Credit Support Provider of Party A, cease to be rated at
         least as high as "Prime-2" (or its equivalent) by Moody's and as a
         result of such downgrade the then current rating of the Notes may in
         the opinion of Moody's be downgraded or placed under review for
         possible downgrade (such downgrade or, as applicable, placing under
         review for downgrade being a "NOTE DOWNGRADE EVENT"), then Party A
         will, on a reasonable efforts basis, within 30 days of the occurrence
         of such downgrade, and at its own cost:

                                       10

<PAGE>

          (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 in relation
               to whom Moody's has confirmed that there would be no Note
               Downgrade Event; or

          (B)  procure another person to become co-obligor in respect of the
               obligations of Party A under this Agreement. Such co-obligor 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 in
               relation to whom Moody's has confirmed that there would be no
               Note Downgrade Event; or

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

          Pending compliance with (iii)(A), (iii)(B) or (iii)(C), Party A will
          at its own cost:

          (D)  put in place a mark-to-market collateral agreement in a form and
               substance acceptable to Moody's (which may be based on the credit
               support documentation published by ISDA, or otherwise, and
               relates to collateral in the form of cash or securities or both)
               in support of its obligations under this Agreement which complies
               with Moody's Criteria (or such other amount as may be agreed with
               Moody's).

          If any of (iii)(A), (iii)(B) or (iii)(C) are satisfied at any time,
          all collateral (or the equivalent thereof, as appropriate) transferred
          by Party A pursuant to (iii)(D) will be retransferred to Party A and
          Party A will not be required to transfer any additional collateral.

          For the purposes of (ii) and (iii), "REQUIRED RATINGS" means, in
          respect of the relevant entity, its short-term, unsecured and
          unsubordinated debt obligations are rated at least as high as
          "Prime-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.

          "MOODY'S CRITERIA" means that the Collateral Amount shall equal the
          sum of (a) the product of A multiplied by the mark-to-market value of
          the outstanding Transactions as determined by Party A in good faith on
          each Local Business Day and (b) the product of B multiplied by the
          current aggregate notional amounts of the outstanding Transactions,
          where:

          (i)  "A" means 102% and "B" means 1.4% if the long-term, unsecured and
               unsubordinated debt obligations or the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor) and
               any Credit Support Provider of Party A cease to be rated as high
               as "A1" or "Prime-1" by Moody's;

                                       11

<PAGE>

          (ii) "A" means 102% and "B" means 2.5% if the long-term, unsecured and
               unsubordinated debt obligations or the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor) and
               any Credit Support Provider of Party A cease to be rated as high
               as "A3" or "Prime-2" by Moody's;

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

          (iv) In the event that the long-term, unsecured and unsubordinated
               debt obligations of Party A (or its successor), or any Credit
               Support Provider of Party A, cease to be rated at least as high
               as "AA-" (or its equivalent) by Fitch Ratings Ltd ("FITCH") and
               as a result the then current rating of the Notes may in the
               reasonable opinion of Fitch be downgraded or placed on credit
               watch for possible downgrade, then Party A will, on a reasonable
               efforts basis, within 30 days of the occurrence of such
               downgrade, at its own cost, either:-

               (A)  put in place an appropriate mark-to-market collateral
                    agreement (which may be based on the credit support
                    documentation published by ISDA, or otherwise, and relates
                    to collateral in the form of cash or securities or both) in
                    support of its obligations under this Agreement provided
                    that (x) Party A shall be deemed to have satisfied the
                    requirements of Fitch if the Collateral Amount is determined
                    on a basis which is no more onerous than the Fitch Criteria
                    (as defined below) and (y) the Collateral Amount shall not
                    be required to exceed such amount as would be required (in
                    accordance with the Fitch Criteria) to restore the rating of
                    the Notes to the level they would have been at immediately
                    prior to such downgrading; or

               (B)  attempt to 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 AA- (or its equivalent) by Fitch
                    or such other rating as is commensurate with the rating
                    assigned to the 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 AA- (or its equivalent) by
                    Fitch or such other rating as is commensurate with the
                    rating assigned to the 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 Notes then outstanding
                    being maintained.

               "FITCH CRITERIA" means the Collateral Amount shall not exceed 100
               per cent. of the mark-to-market value of the outstanding
               Transactions as determined by Party A in good faith from time to
               time provided that if the long-term, unsecured and unsubordinated
               debt obligations of Party A (or its successor, assignee or
               novatee) cease to be rated as high as "AA-" by Fitch then the
               applicable Collateral Amount

                                       12

<PAGE>

               shall not exceed the sum of (i) 100 per cent, of the
               mark-to-market value of the outstanding Transactions determined
               by Party A in good faith from time to time, and (ii) an amount
               determined in respect of the Series 1 Class C Notes equal to the
               Principal Amount Outstanding as of the date of determination
               multiplied by the number of days remaining from the date of the
               determination to the original Expected Repayment Date, divided by
               365 (such aggregate, the "BUFFER NOTIONAL") multiplied by 0.10
               per cent. "EXPECTED REPAYMENT DATE" means the Payment Date
               falling in January 2008.

          (v)  If Party A does not take any of the measures described in (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 such downgrade with Party A as the sole
               Affected Party and all Transactions shall be Affected
               Transactions.

               If Party A does not take the measures described in (ii)(D) 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 downgrade with Party A as the sole Affected Party
               and all Transactions shall be Affected Transactions.

               If Party A does not take the measures described in (iii)(D) 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 downgrade 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 (iii)(D), Party A has failed to either transfer
               as described in (iii)(A), find a co-obligor as described in
               (iii)(B) or take such other action as described in (iii)(C), and
               such Additional Termination Event shall be deemed to have
               occurred on the thirtieth day following such downgrade with Party
               A as the sole Affected Party and all Transactions shall be
               Affected Transactions.

               If Party A does not take any of the measures described in (iv)
               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 downgrade with Party A as the sole
               Affected Party and all Transactions shall be Affected
               Transactions.

               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 Part 5(k)
               if Party B has found a replacement counterparty willing to enter
               into a new transaction on terms that reflect as closely as
               reasonably possible the economic, legal and credit terms of the
               Terminated Transactions with Party A.

               Each Additional Termination Event described in this sub-part (v)
               shall, on its occurrence, constitute a "DOWNGRADE TERMINATION
               EVENT".

                                       13

<PAGE>

         (vi) Each of Party B and the Note Trustee shall use their reasonable
              endeavours to co-operate with Party A in putting in place such
              credit support documentation, including agreeing to such
              arrangements in such documentation as may satisfy S&P, Moody's
              and Fitch with respect to the operation and management of the
              collateral (subject always to proviso (x) and (y) in (i)(A) and
              (iv)(A) above) and entering into such documents as may reasonably
              be requested by Party A in connection with the provision of such
              collateral.

(l)      ADDITIONAL REPRESENTATION

         Section 3 is amended by the addition at the end thereof of the
         following additional representations:-

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

         (ii) The following additional representation shall be given by Party A
              only:

              "(h) PARI PASSU. Its obligations under this Agreement rank pari
              passu with all of its other unsecured, unsubordinated obligations
              except those obligations preferred by operation of law."

(m)      RECORDING OF CONVERSATIONS

         Each party to this Agreement acknowledges and agrees to the tape
         recording of conversations between the parties to this Agreement
         whether by one or other or both of the parties.

(n)      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

                                       14

<PAGE>

              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 (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
              or an adviser for it in respect of that Transaction."

(o)      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 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.

                                       15

<PAGE>

          (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 any
                         deduction or withholding giving rise to such payment or
                         in the case of Section 2(d)(ii)(B) the amount to be
                         assessed, it shall pay to Party A on the next Interest
                         Payment Date after receipt of the same so much of the
                         cash benefit (as calculated 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 (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

                                       16

<PAGE>

                         together, in either case, with any related interest or
                         similar payment obtained by Party B; and

                    (3)  It will use all reasonable endeavours to obtain any Tax
                         credit, allowance, set-off or repayment as soon as is
                         reasonably practicable provided that it shall be the
                         sole judge of the amount of any such Tax credit,
                         allowance, set-off or repayment 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, allowance, set-off
                         or repayment 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."

(p)      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 short term
         unsecured, unsubordinated and unguaranteed debt obligation rating of at
         least P-1 (in the case of Moody's) and A-1 (in the case of S&P)."

(q)      CONDITION PRECEDENT

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

(r)      REPRESENTATIONS

         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.

(s)      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) as amended in the Schedule,
               Party A may transfer all its interest and obligations in and
               under this Agreement upon providing five Business Days prior
               written notice to the Note Trustee, to any other entity (a
               "Transferee") provided that:

                                       17

<PAGE>

               (a)  the Transferee's long-term, unguaranteed, unsecured and
                    unsubordinated debt obligations are then rated not less than
                    "AA-" by S&P, "A1" by Moody's and "AA-" 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, unguaranteed, unsecured and
                    unsubordinated debt obligations are then rated not less than
                    "AA-" by S&P, "A1" by Moody's and "AA-" by Fitch (or its
                    equivalent by any substitute rating agency);

               (b)  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;

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

               (d)  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

               (e)  (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 Notes will not be adversely affected.

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

          (ii) Save as otherwise provided for in this Agreement and
               notwithstanding Section 7, Party A shall not be permitted to
               transfer (by way of security or otherwise) this Agreement nor any
               interest or obligation in or under this Agreement without the
               prior written consent of the Note Trustee.

(t)      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.

(u)      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 15.3(l)(i) (Dollar Currency Swap
         Agreements) of the Current Issuer Deed of Charge, upon the occurrence
         of an Event of Default or an Additional Termination Event with respect
         to Party A, 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:

                                       18

<PAGE>

          (i)  For the purposes of Clause 6(d)(i), 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 existing
                    confirmations hereto (and the Reference Market-maker is
                    rated not less than "AA-" by S&P, "A1" by Moody's and "AA-"
                    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 such Rating Agency) or
                    the Rating Agencies have confirmed in writing such proposed
                    documentation will not adversely impact the ratings of the
                    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 either (a) the lower of the two quotations where
                    there would be a sum payable by Party A to Party B, or (b)
                    the higher of the two quotations where there would be a sum
                    payable by Party B to Party A. 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 (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 6 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

                                       19
<PAGE>

                    Market Quotation in respect of the Terminated Transaction
                    cannot be determined.

          (iv) Party B will be deemed to have discharged its obligations under
               (iii)(A) above if it promptly requests, in writing, Party A (such
               request to be made within two Local Business Days after the
               occurrence of the Early Termination Date) to obtain 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.

                                       20

<PAGE>

                                   APPENDIX A

                                       1

<PAGE>

                                                       (SERIES 1 CLASS C NOTES)

From:             CDC IXIS Capital Markets
                  Cannon Bridge
                  25 Dowgate Hill
                  London EC4R 2GN

To:               Granite Mortgages 02-2 plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

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

Attention:        Corporate Trust (Global Structured Finance)

                                                              23 September, 2002

Dear Sirs,

RE:      CROSS CURRENCY SWAP TRANSACTIONS RELATING TO GRANITE MORTGAGES 02-2 PLC
         U.S. $88,000,000 SERIES 1 CLASS C NOTES DUE JANUARY 2043

The purpose of this letter is to confirm the terms and conditions of the swap
transactions entered into between us on the Trade Date specified below (the
"SWAP TRANSACTIONS"). This letter constitutes a "CONFIRMATION" as referred to in
the 1992 ISDA Master Agreement (Multicurrency-Cross Border) entered into between
us and both of you on the date hereof as amended and supplemented from time to
time (the "AGREEMENT").

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps & Derivatives Association, Inc. (the
"DEFINITIONS") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
shall prevail. Any terms not otherwise defined herein or in the Definitions
shall have the meanings given to them in the Master Definitions Schedule as
amended and restated by (and appearing in Appendix 1 to) the Master Definitions
Schedule Third Amendment Deed executed by, among others, the Note Trustee on 23
September 2002 and the Issuer Master Definitions Schedule signed for the
purposes of identification by Sidley Austin Brown & Wood and Allen & Overy on 23
September, 2002 (as the same have been and may be amended, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule specified above shall prevail to the extent
that it conflicts with the Master Definitions Schedule.

                                       2
<PAGE>

1     This Confirmation supplements, forms part of, and is subject to, the
      Agreement. All provisions contained in, incorporated in, or incorporated
      by reference to, the Agreement shall govern this Confirmation except as
      expressly modified below.

2     The terms of the particular Swap Transactions to which this Confirmation
      relates are as follows:

Party A:                                CDC IXIS Capital Markets

Party B:                                Granite Mortgages 02-2 plc

Trade Date:                             10 September, 2002

Effective Date:                         23 September, 2002

Termination Date:                       The earlier of (i) the Payment Date
                                        falling in January 2043 and (ii) the
                                        date on which the Series 1 Class C Notes
                                        are redeemed or repaid in full

Payment Date:                           Each Payment Date in respect of the
                                        Series 1 Class C Notes

USD Amortisation Amount:                in respect of a Payment Date, the amount
                                        (in USD) to be applied in repayment of
                                        the principal amount of the Series 1
                                        Class C Notes on such Payment Date as
                                        notified to the Calculation Agent by the
                                        Cash Manager

Exchange Rate:                          GBP 1.00:USD 1.54

A. FLOATING PAYMENTS

FLOATING AMOUNTS FOR PARTY A:

Floating Rate Payer:                    Party A

Party A Currency Amount:                USD 88,000,000

Party A Payment Dates:                  each Payment Date

Floating Rate Option:                   USD-LIBOR-BBA

                                       3

<PAGE>

Designated Maturity:                    3 months; except for the initial
                                        Calculation Period which shall be the
                                        linear interpolation of 3 and 4 months

Spread A for the Calculation            1.25% per annum
Periods up to and including the
Calculation Period ending
immediately prior to the Payment
Date in January 2008:

Spread A for the Calculation            2.25% per annum
Periods from and including
the Calculation Period beginning
on (and including) the
Payment Date in January 2008:

Party A Floating Rate Day               Actual/360
Count Fraction:

Reset Dates:                            The first day of each Calculation
                                        Period

FLOATING AMOUNTS FOR PARTY B:

Floating Rate Payer:                    Party B

Party B Currency Amount:                GBP 57,142,857

Party B Payment Dates:                  Each Payment Date

Floating Rate Option:                   GBP-LIBOR-BBA

Designated Maturity:                    3 months except for the initial
                                        Calculation Period which shall be the
                                        linear interpolation of 3 and 4 months

Spread B for the Calculation            1.3225% per annum
Periods up to and including the
Calculation Period ending
immediately prior to the Payment
Date in January 2008:

Spread B for the Calculation            2.3225% per annum
Periods from and including
the Calculation Period beginning
on (and including) the
Payment Date in January 2008 up
to and including the
Calculation Period ending
immediately prior to the
Termination Date:

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

                                       4

<PAGE>

Reset Dates:                            the first day of each Calculation Period

Calculation Agent:                      Party A

B. EXCHANGE:

Initial Exchange Date:                  Effective Date

Party A Initial Exchange Amount:        Party B Currency Amount

Party B Initial Exchange Amount:        Party A Currency Amount

Final Exchange Date:                    Termination Date

Party A Final Exchange Amount:          Party A Currency Amount

Party B Final Exchange Amount:          Party B Currency Amount

The Transactions referred to above are hereinafter referred to as the
"PRINCIPAL TRANSACTION"

C. CONDITIONAL INTEREST RATE AND CURRENCY TRANSACTIONS

The terms set out below are applicable to each of the additional interest rate
and currency Transactions (comprising the Additional Initial Exchanges Amounts
and Additional Final Exchange Amounts, Party A Additional Floating Amounts and
Party B Additional Floating Amounts set out below). The following terms reflect
such additional 8,800 Transactions each on the terms set out below and each such
Transaction shall be referred to in numerical sequence beginning with
"Transaction 1" through "Transaction 8,800" (together, the "CONDITIONAL
TRANSACTIONS") and such Transactions are to become effective on a sequential
basis, starting on the first Additional Initial Exchange Date on which the
conditions referred to below are satisfied for that Transaction.

The first Transaction shall be conditional upon the USD Amortisation Amount for
any Payment Date being greater than or equal to the Party B Additional Currency
Amount (as defined below) (each a "FIRST CONDITION") and each subsequent
Transaction shall be conditional upon, (i) the First Condition having occurred,
(ii) the immediately preceding Transactions having become effective, and (iii)
the then relevant USD Amortisation Amount less the aggregate of the Party A
Additional Initial Exchange Amounts of the preceding Transactions which have
become effective on (but not prior to) the relevant Additional Initial Exchange
Date equalling or exceeding the Party A Additional Initial Exchange Amount on
such Transaction.

On each Calculation Date, Party B shall notify Party A as to the USD
Amortisation Amount and the Conditional Transactions in numerical order that are
then currently effective and are to become effective on the next Party A Payment
Date.

                                       5

<PAGE>

(1) ADDITIONAL INITIAL EXCHANGE AMOUNTS
AND ADDITIONAL FINAL EXCHANGE AMOUNTS

Additional Initial Exchange Date        the Payment Date on which the
and the Effective Date:                 conditions referred to above for the
                                        relevant Transaction comprising one of
                                        the Conditional Transactions are
                                        satisfied (being the "RELEVANT PAYMENT
                                        DATE" for that Transaction)

Party A Additional Initial
Exchange Amount:                        Party B Additional Currency Amount

Party B Additional Initial
Exchange Amount:                        Party A Additional Currency Amount

Party A Additional Final
Exchange Amount:                        Party A Additional Currency Amount

Party B Additional Final
Exchange Amount:                        Party B Additional Currency Amount

Additional Final Exchange Date:         Termination Date

(2) ADDITIONAL FLOATING AMOUNTS

PARTY A ADDITIONAL FLOATING AMOUNTS

Party A Additional Currency Amount:     GBP 6493.51

Party A Additional Floating             Party A
Amount Payer:

Party A Additional Floating Amount      each Payment Date following the Relevant
Payer Payment Dates:                    Payment Date

Party A Additional Floating Rate        GBP - LIBOR - BBA
Option:

Designated Maturity:                    3 months

Spread A for the Calculation            1.3225% per annum
Periods up to and including
the Calculation Period ending
immediately prior to the
Payment Date in January 2008:

Spread A for the Calculation            2.3225% per annum
Periods from and including  the
Calculation Period beginning on
(and including) the Payment
Date in January 2008:

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

                                       6

<PAGE>

Reset Dates:                            The first day of each Calculation
                                        Period

PARTY B ADDITIONAL FLOATING AMOUNTS

Party B Additional Currency Amount:     USD 10,000

Party B Additional Floating             Party B
Amount Payer:

Party B Additional Floating             each Party A Payment Date following
Amount Payer Payment Date:              the Relevant Payment Date

Party B Additional Floating             USD - LIBOR - BBA
Rate Option:

Designated Maturity:                    3 months

Spread B For the Calculation            1.25% per annum
Period up to and including
the Calculation Period ending
immediately prior to the
Payment Date in January 2008:

Spread B for the Calculation            2.25% per annum
Period from and including  the
Calculation Period beginning
on (and including) the Payment
Date in January
2008:

Party B Additional Floating             Actual/360
Rate Day Count Fraction:

Reset Dates:                            the first day of each Calculation
                                        Period

(3) ACCOUNT DETAILS:

PAYMENTS TO PARTY A:

Account for Payments in USD:            Bankers Trust Company New York New
                                        YorkSwift: BKTRUS33 Beneficiary
                                        Institution: CDC IXIS, Paris (CDCFFRPP)
                                        Further Credit: CDC IXIS Capital
                                        Markets, Paris (CDCMFRPP)

Account for Payments in GBP:            Barclays Bank PLC LondonSwift: BARCGB22
                                        Beneficiary Institution: CDC IXIS,
                                        Paris (CDCFFRPP) Further Credit: CDC
                                        IXIS Capital Markets, Paris (CDCMFRPP)

                                       7

<PAGE>

PAYMENTS TO PARTY B:

Account for Payments in USD:            Citibank, N.A., New York 10990765
                                        Citibank, N.A., London Agency and Trust
                                        S.W.I.F.T. CITIUS33 for further credit
                                        to A/C Granite Mortgages 02-2 plc A/C
                                        10456837.

Account for Payments in GBP:            Citibank N.A., London 8378088 Agency
                                        and Trust Sort Code 18-50-08 for
                                        further credit to A/C Granite Mortgages
                                        02-2 plc A/C 10456845.

(4) NOTICE DETAILS:

Party A:                                CDC IXIS Capital Markets

Address:                                Cannon Bridge
                                        25 Dowgate Hill
                                        London EC4R 2GN

Facsimile Number:                       0207 648 6901

Attention:                              Guillaume Barrier (Head of Strategic
                                        Credit) and Brett Townsend/John Powell
                                        (Derivative Sales)

With a copy to:                         CDC IXIS Capital Markets
                                        56, rue de
                                        Lille 75356 Paris

Attention:                              Emmanuel Baud (Joint Head
                                        of Derivative Products
                                        BO)

Facsimile No.:                          + 33 1 4049 1301

Attention:                              Sophie Gallouin (Head of Derivative
                                        Products BO)

Facsimile No.:                          + 33 1 4049 1301

Party B:                                Granite Mortgages 02-2 plc

                                       8

<PAGE>

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:                       44-191-279-4694

Attention:                              Keith M. Currie

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

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

Facsimile Number:                       020 7964 6061

(5) OFFICES:                            The Office of Party A for each of the
                                        Transactions evidenced by this
                                        Confirmation is London.
(6) MISCELLANEOUS:

(a)    Section 2(c)(ii) of the Agreement will not apply to the Transactions
       evidenced by this Confirmation.

(b)    If any payment of any amounts by Party A and Party B is deferred in
       accordance with Section 5(h)(iii) of the Schedule to this agreement then
       the amount so deferred on the Party A Floating Amount shall, subject to
       the terms of this Agreement, be payable on the next Party A Payment Date
       (together with an additional floating amount accrued thereon at the
       applicable Party A Floating Rate) and the Party A Floating Amount due on
       such date shall be deemed to include such amounts.

       The amount so deferred on the Party B Floating Amount shall, subject to
       the terms of this Agreement, be payable on the next Party B Payment Date
       (together with an additional floating amount accrued thereon accrued at
       the applicable Party B Floating Rate) and the Party B Floating Amount due
       on such date shall be deemed to include such amounts.

                                        9

<PAGE>

Yours faithfully,

CDC IXIS CAPITAL MARKETS

By:

Name:
Title: As attorney for CDC IXIS Capital Markets

By:

Name:
Title: As attorney for CDC IXIS Capital Markets

Confirmed as of the date first written:

GRANITE MORTGAGES 02-2 PLC

By:

Name:
Title:

THE BANK OF NEW YORK

 as Note Trustee

By:

Name:
Title:EXHIBIT 10.3.1

                                                          Series 2 Class A Notes

(MULTICURRENCY - CROSS BORDER)

                                     ISDA(R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                          dated as of 23 September 2002

                                       The Bank of New York (the "Note Trustee")
CDC IXIS Capital Markets ("Party A")   Granite Mortgages 02-2 plc ("Party B").
----------------------------------- and ---------------------------------------

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

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

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

      (v) ADDITIONAL TERMINATION EVENT. If 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)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

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

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

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

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

      (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)(1) 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 specifying any
      amount payable under Section 6(e)) and (2) giving details of the relevant
      account to which any amount payable to it is to be paid. In the absence of
      written confirmation from the source of a quotation obtained in
      determining a Market Quotation, the records of the party obtaining such
      quotation will be conclusive evidence of the existence and accuracy of
      such quotation.

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

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

      (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
      of Default: --

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

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

            (3) Second Method and 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 (II) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to Y; and

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

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

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

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

                                       10                           ISDA(R) 1992

<PAGE>

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 the 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 1(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 from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

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

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

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

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

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

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

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

                                       14                           ISDA(R) 1992

<PAGE>

"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)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 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.

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

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

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

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

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

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

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

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

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

                                       17                           ISDA(R) 1992

<PAGE>

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.

CDC IXIS Capital Markets                       Granite Mortgages 02-2 plc,
being Party A                                  being Party B
---------------------------------------        ---------------------------------
         (Name of Party)                                 (Name of Party)

By: ...................................        By: .............................
    Name:                                          Name:
    Title:                                         Title:
    Date:                                          Date:

                                               The Bank of New York
                                               being the Note Trustee
                                               ---------------------------------
                                              (Name of Party)

                                               By: .............................
                                                   Name:
                                                   Title:
                                                   Date:

                                       18                           ISDA(R) 1992

<PAGE>

                                                        (SERIES 2 CLASS A NOTES)

                                    SCHEDULE

                                     TO THE

                                MASTER AGREEMENT

                         dated as of 23 September, 2002

between

(1)      CDC IXIS CAPITAL MARKETS ("PARTY A");

(2)      GRANITE MORTGAGES 02-2 plc ("PARTY B"); and

(3)      THE BANK OF NEW YORK (as Note Trustee and which has agreed to become a
         party to this Agreement solely for the purpose of taking the benefit of
         Parts 5(c) and (h) of the Schedule to this Agreement).

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.

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

(d)      The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) will
         apply to Party A and will not apply to Party B.

                                       1

<PAGE>

(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 purposes of Section 6(e) of this
         Agreement:-

         (i)      Market Quotation will apply.

         (ii)     The Second Method will apply.

(g)      "TERMINATION CURRENCY" means Sterling.

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, Party A makes the representation specified below (the
         "ADDITIONAL TAX REPRESENTATION"):-

         (i)  it is a party to each Transaction solely for the purposes of a
              trade (or part of a trade) carried on by it in the United Kingdom
              through a branch or agency; or

         (ii) it is resident in the United Kingdom or in a jurisdiction with
              which the United Kingdom has a double tax treaty which makes
              provision, whether for relief or otherwise, in relation to
              interest.

(c)      ADDITIONAL TERMINATION EVENT. The Additional Tax Representation proves
         to have been incorrect or misleading in any material respect with
         respect to one or more Transactions (each an "Affected Transaction" for
         the purposes of this Additional Termination Event) when made or
         repeated or deemed to have been made or repeated. The Affected Party
         shall be Party A only.

                                       2

<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      FORM/DOCUMENT/               DATE BY WHICH TO BE
         DELIVER DOCUMENT       CERTIFICATE                  DELIVERED
         ----------------       -------------                -------------------
         <S>                    <C>                          <C>

                                None

(b)      Other documents to be delivered are:-

<CAPTION>

         PARTY REQUIRED                                                               COVERED BY
         TO DELIVER           FORM/DOCUMENT/                 DATE BY WHICH            SECTION 3(D)
         DOCUMENT             CERTIFICATE                    TO BE DELIVERED          REPRESENTATION
         --------------       --------------                 ---------------          --------------
         <S>                  <C>                            <C>                      <C>
         Party A and          Appropriate                    On signing of            Yes
         Party B              evidence of                    this Agreement
                              its signatory's
                              authority

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

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

         Party B              Legal opinion of the           On signing of            No
                              counsel to Party B             this Agreement
                              in form and substance
                              satisfactory to Party A
</TABLE>

                                       3

<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:          CDC IXIS Capital Markets
                           Cannon Bridge
                           25 Dowgate Hill
                           London EC4R 2GN

         Attention:        Guillaume Barrier (Head of Strategic Credit) and
                           Brett Townsend/John Powell (Derivative Sales)

         Facsimile No.:    0207 648 6901

         Telephone No.:    0207 648 6900

         With a copy to:   CDC IXIS Capital Markets
                           56, rue de Lille
                           75356 Paris

         Attention:        Emmanuel Baud (Joint Head of Derivative Products BO)

         Facsimile No.:    + 33 1 4049 1301

         Telephone No.:    + 33 1 4049 3906

         Attention:        Sophie Gallouin (Head of Derivative Products BO)

         Facsimile No.:    + 33 1 4049 1301

         Telephone No.:    + 33 1 4049 2018

         Address for notices or communications to Party B:-

         Address:          Granite Mortgages 02-2 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

                                       4

<PAGE>

         Attention:        Keith M. Currie

         Facsimile No.:    0191 279 4694

         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.:    020 7964 6061

(b)      PROCESS AGENT.  For this purpose of Section 13(c) of this Agreement:-

         Party A appoints as its Process Agent:  none.

         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 each
         Confirmation.

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

         In respect of Party A:     None.

         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.

                                       5

<PAGE>

(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.

(ii)     "AFFILIATE" will have the meaning specified in Section 14 of this
         Agreement.

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 Master Definitions
         Schedule as amended and restated by (and appearing in Appendix 1 to)
         the Master Definitions Schedule Third Amendment Deed executed by, among
         others, the Note Trustee on 23 September 2002 and the Issuer Master
         Definitions Schedule signed for the purposes of identification by
         Sidley Austin Brown & Wood and Allen & Overy on 23 September, 2002 (as
         the same have been and may be amended, varied or supplemented from time
         to time with the consent of the parties hereto). The Issuer Master
         Definitions Schedule specified above shall prevail to the extent that
         it conflicts with the Master Definitions Schedule.

(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.

         (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 Note
         Trustee (or any successor thereto) pursuant to and in accordance with
         the Current Issuer Deed of Charge and acknowledges notice of such
         assignment. Each of the parties hereby confirms and agrees that the
         Note Trustee shall not be liable for any of the obligations of Party B
         hereunder.

(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),(7) and (9).

                                       6

<PAGE>

(e)      DISAPPLICATION OF CERTAIN TERMINATION EVENTS

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

(f)      ADDITIONAL EVENT OF DEFAULT

         The following shall constitute an additional Event of Default:

         "NOTE ENFORCEMENT NOTICE. The Note Trustee serves a Note Enforcement
         Notice on Party B (in which case Party B shall be the Defaulting
         Party)."

(g)      NORTHERN ROCK PLC AS PARTY B'S AGENT

         Party B hereby declares that pursuant to the Current 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 Current
         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 agrees with Party B and the Note Trustee to be bound by
               the terms of the Current Issuer Deed of Charge and the Current
               Issuer Cash Management Agreement and, in particular, confirms
               that: (i) no sum shall be payable by or on behalf of Party B to
               it except in accordance with the Current Issuer Priority of
               Payments as set out in the Current Issuer Cash Management
               Agreement or, as applicable, the Current Issuer Deed of Charge
               (as the same may be amended from time to time); and (ii) it will
               not take any steps for the winding up, dissolution or
               reorganisation 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 Current 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 Current Issuer Priority of Payments,
               the Current Issuer Cash Management Agreement and/or, as
               applicable the Current Issuer Deed of Charge.

         (iii) If, on any date, Party B does not pay the full amount it would
               otherwise owe under any Transaction (including, for the avoidance
               of doubt, any related Conditional Transactions, and after the
               application of Section 2(c) to such Transaction) because of the
               limitation contained in clause (i) of this paragraph (h),

                                       7

<PAGE>

               then (i) payment by Party B of the shortfall will not then fall
               due but will instead be deferred until the first Payment Date
               thereafter on which sufficient funds are available (subject to
               the limitation in clause (i) of this paragraph (h)), (ii) failure
               by Party B to make the full payment under such Transaction
               (including, for the avoidance of doubt, any related Conditional
               Transactions, and 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 (iii) 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 absent such limitation.

          (iv) For the avoidance of doubt, if an Early Termination Date results
               from an Event of Default, any amount payable (the payment of
               which was deferred or not paid in the circumstances described
               under clause (iii) of this Part 5(h) 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.

(i)      SCOPE OF AGREEMENT

         It is hereby understood and agreed that the provisions of this
         Agreement shall only apply to the Transactions (including, for the
         avoidance of doubt, the Conditional Transactions) entered into between
         Party A and Party B on the date as of which this Agreement is made as
         evidenced by the Confirmation substantially in the form attached hereto
         as Appendix A, and that no other Transaction may be entered into
         pursuant hereto except in accordance with sub-paragraphs
         (i)(A),(ii)(D), (iii)(D) or (iv)(A) of Part 5(k) or where the Rating
         Agencies have confirmed in writing that the then current ratings of the
         Current 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 throughout the
         course of any Transaction) that it is an authorised person for the
         purposes of the Financial Services and Markets Act 2000.

(k)      RATINGS DOWNGRADE OF PARTY A

         (i)  In the event that the long-term, unsecured and unsubordinated
              debt obligations of Party A (or its successor), or any Credit
              Support Provider of Party A, cease to be rated at least as high
              as "AA-" (or its equivalent) by Standard & Poor's Rating
              Services, a division of The McGraw-Hill Companies Inc. ("S&P")
              and as a result of such downgrade the then current rating of the
              Notes may in the reasonable opinion of S&P be downgraded or
              placed under review for possible downgrade, then Party A shall,
              within 30 days of the occurrence of such downgrade, at its own
              cost either:-

                                       8

<PAGE>

              (A)  put in place an appropriate mark-to-market collateral
                   agreement, (which may be based on the credit support
                   documentation published by ISDA, or otherwise, and relates
                   to collateral in the form of cash or securities or both) in
                   support of its obligations under this Agreement provided
                   that (x) Party A shall be deemed to have satisfied the
                   requirements of S&P if the amount of collateral agreed to be
                   provided in the form of cash and/or securities (the
                   "COLLATERAL AMOUNT") is determined on a basis which is no
                   more onerous than the S&P Criteria (as defined below) and
                   (y) the Collateral Amount shall not be required to exceed
                   such amount as would be required (in accordance with the S&P
                   Criteria) to restore the rating of the Notes to the level
                   they would have been at immediately prior to such
                   downgrading; 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 obligations are rated at
                   least as high as "AA-" (or its equivalent) by S&P or such
                   other rating as is commensurate with the rating assigned to
                   the Notes by S&P from time to time; or

              (C)  procure another person to become co-obligor in respect of
                   the obligations of Party A under this Agreement whose
                   long-term, unsecured and unsubordinated debt obligations are
                   rated at least as high as "AA-" (or its equivalent) by S&P
                   or such other rating as is commensurate with the rating
                   assigned to the 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 Notes then outstanding following
                   the taking of such action being rated no lower than the
                   rating of the Notes immediately prior to such downgrade.

         "S&P CRITERIA" means the criteria published in January 1999 as amended
         in June 2000 which enable entities rated lower than a specified level
         to participate in structured finance transactions which, through
         collateralisation, are rated at a higher level (as referred to, in
         part, in the article entitled New Interest Rate Currency Swap Criteria
         Broadens Allowable Counterparties in the January 1999 issue of S&P's
         Structured Finance publication).

(ii)     In the event that (aa) the long-term, unsecured and unsubordinated debt
         obligations of Party A (or its successor) and, if relevant, any Credit
         Support Provider of Party A, cease to be rated at least as high as "A1"
         (or its equivalent) by Moody's Investors Service Limited ("MOODY'S") or
         (bb) the short-term, unsecured and unsubordinated debt obligations of
         Party A (or its successor) and, if relevant, any Credit Support
         Provider of Party A, cease to be rated at least as high as "Prime-1"
         (or its equivalent) by Moody's and as a result of such downgrade the
         then current ratings of the Notes may in the opinion of Moody's be
         downgraded or placed under review for possible downgrade (such
         downgrade or, as applicable, placing under review for downgrade being a
         "NOTE DOWNGRADE

                                       9

<PAGE>

         EVENT"), then Party A will, 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 in relation to whom Moody's has confirmed that there would
              be no Note Downgrade Event; or

         (B)  procure another person to become co-obligor in respect of the
              obligations of Party A under this Agreement. Such co-obligor 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 in
              relation to whom Moody's has confirmed that there would be no
              Note Downgrade Event; or

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

         Pending compliance with any of (ii)(A), (ii)(B) or (ii)(C) above,
         Party A will, at its own cost:

         (D)  within 30 days of the occurrence of such downgrade, put in place
              a mark-to-market collateral agreement in a form and substance
              acceptable to Moody's (which may be based on the credit support
              documentation published by ISDA, or otherwise, and relates to
              collateral in the form of cash or securities or both) in support
              of its obligations under this Agreement which complies with
              Moody's Criteria (or such other amount as may be agreed with
              Moody's).

         If any of (ii)(A), (ii)(B) or (ii)(C) are satisfied at any time, all
         collateral (or the equivalent thereof, as appropriate) transferred by
         Party A pursuant to (ii)(D) will be retransferred to Party A and Party
         A will not be required to transfer any additional collateral.

(iii)    In the event that (aa) the long-term, unsecured and unsubordinated debt
         obligations of Party A (or its successor) and, if relevant, any Credit
         Support Provider of Party A, cease to be rated at least as high as "A3"
         (or its equivalent) by Moody's or (bb) the short-term, unsecured and
         unsubordinated debt obligations of Party A (or its successor) and, if
         relevant, any Credit Support Provider of Party A, cease to be rated at
         least as high as "Prime-2" (or its equivalent) by Moody's and as a
         result of such downgrade the then current rating of the Notes may in
         the opinion of Moody's be downgraded or placed under review for
         possible downgrade (such downgrade or, as applicable, placing under
         review for downgrade being a "NOTE DOWNGRADE EVENT"), then Party A
         will, on a reasonable efforts basis, within 30 days of the occurrence
         of such downgrade, and at its own cost:

                                       10

<PAGE>

          (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 in relation
               to whom Moody's has confirmed that there would be no Note
               Downgrade Event; or

          (B)  procure another person to become co-obligor in respect of the
               obligations of Party A under this Agreement. Such co-obligor 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 in
               relation to whom Moody's has confirmed that there would be no
               Note Downgrade Event; or

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

          Pending compliance with (iii)(A), (iii)(B) or (iii)(C), Party A will
          at its own cost:

          (D)  put in place a mark-to-market collateral agreement in a form and
               substance acceptable to Moody's (which may be based on the credit
               support documentation published by ISDA, or otherwise, and
               relates to collateral in the form of cash or securities or both)
               in support of its obligations under this Agreement which complies
               with Moody's Criteria (or such other amount as may be agreed with
               Moody's).

          If any of (iii)(A), (iii)(B) or (iii)(C) are satisfied at any time,
          all collateral (or the equivalent thereof, as appropriate) transferred
          by Party A pursuant to (iii)(D) will be retransferred to Party A and
          Party A will not be required to transfer any additional collateral.

          For the purposes of (ii) and (iii), "REQUIRED RATINGS" means, in
          respect of the relevant entity, its short-term, unsecured and
          unsubordinated debt obligations are rated at least as high as
          "Prime-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.

          "MOODY'S CRITERIA" means that the Collateral Amount shall equal the
          sum of (a) the product of A multiplied by the mark-to-market value of
          the outstanding Transactions as determined by Party A in good faith on
          each Local Business Day and (b) the product of B multiplied by the
          current aggregate notional amounts of the outstanding Transactions,
          where:

          (i)  "A" means 102% and "B" means 1.4% if the long-term, unsecured and
               unsubordinated debt obligations or the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor) and
               any Credit Support Provider of Party A cease to be rated as high
               as "A1" or "Prime-1" by Moody's;

                                       11

<PAGE>

          (ii) "A" means 102% and "B" means 2.5% if the long-term, unsecured and
               unsubordinated debt obligations or the short-term, unsecured and
               unsubordinated debt obligations of Party A (or its successor) and
               any Credit Support Provider of Party A cease to be rated as high
               as "A3" or "Prime-2" by Moody's;

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

          (iv) In the event that the long-term, unsecured and unsubordinated
               debt obligations of Party A (or its successor), or any Credit
               Support Provider of Party A, cease to be rated at least as high
               as "AA-" (or its equivalent) by Fitch Ratings Ltd ("FITCH") and
               as a result the then current rating of the Notes may in the
               reasonable opinion of Fitch be downgraded or placed on credit
               watch for possible downgrade, then Party A will, on a reasonable
               efforts basis, within 30 days of the occurrence of such
               downgrade, at its own cost, either:-

               (A)  put in place an appropriate mark-to-market collateral
                    agreement (which may be based on the credit support
                    documentation published by ISDA, or otherwise, and relates
                    to collateral in the form of cash or securities or both) in
                    support of its obligations under this Agreement provided
                    that (x) Party A shall be deemed to have satisfied the
                    requirements of Fitch if the Collateral Amount is determined
                    on a basis which is no more onerous than the Fitch Criteria
                    (as defined below) and (y) the Collateral Amount shall not
                    be required to exceed such amount as would be required (in
                    accordance with the Fitch Criteria) to restore the rating of
                    the Notes to the level they would have been at immediately
                    prior to such downgrading; or

               (B)  attempt to 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 AA- (or its equivalent) by Fitch
                    or such other rating as is commensurate with the rating
                    assigned to the 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 AA- (or its equivalent) by
                    Fitch or such other rating as is commensurate with the
                    rating assigned to the 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 Notes then outstanding
                    being maintained.

               "FITCH CRITERIA" means the Collateral Amount shall not exceed 100
               per cent. of the mark-to-market value of the outstanding
               Transactions as determined by Party A in good faith from time to
               time provided that if the long-term, unsecured and unsubordinated
               debt obligations of Party A (or its successor, assignee or
               novatee) cease to be rated as high as "AA-" by Fitch then the
               applicable Collateral Amount

                                       12

<PAGE>

               shall not exceed the sum of (i) 100 per cent, of the
               mark-to-market value of the outstanding Transactions determined
               by Party A in good faith from time to time, and (ii) an amount
               determined in respect of the Series 2 Class A Notes equal to the
               Principal Amount Outstanding as of the date of determination
               multiplied by the number of days remaining from the date of the
               determination to the original Expected Repayment Date, divided by
               365 (such aggregate, the "BUFFER NOTIONAL") multiplied by 0.10
               per cent. "EXPECTED REPAYMENT DATE" means the Payment Date
               falling in January 2008.

          (v)  If Party A does not take any of the measures described in (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 such downgrade with Party A as the sole
               Affected Party and all Transactions shall be Affected
               Transactions.

               If Party A does not take the measures described in (ii)(D) 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 downgrade with Party A as the sole Affected Party
               and all Transactions shall be Affected Transactions.

               If Party A does not take the measures described in (iii)(D) 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 downgrade 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 (iii)(D), Party A has failed to either transfer
               as described in (iii)(A), find a co-obligor as described in
               (iii)(B) or take such other action as described in (iii)(C), and
               such Additional Termination Event shall be deemed to have
               occurred on the thirtieth day following such downgrade with Party
               A as the sole Affected Party and all Transactions shall be
               Affected Transactions.

               If Party A does not take any of the measures described in (iv)
               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 downgrade with Party A as the sole
               Affected Party and all Transactions shall be Affected
               Transactions.

               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 Part 5(k)
               if Party B has found a replacement counterparty willing to enter
               into a new transaction on terms that reflect as closely as
               reasonably possible the economic, legal and credit terms of the
               Terminated Transactions with Party A.

               Each Additional Termination Event described in this sub-part (v)
               shall, on its occurrence, constitute a "DOWNGRADE TERMINATION
               EVENT".

                                       13

<PAGE>

         (vi) Each of Party B and the Note Trustee shall use their reasonable
              endeavours to co-operate with Party A in putting in place such
              credit support documentation, including agreeing to such
              arrangements in such documentation as may satisfy S&P, Moody's
              and Fitch with respect to the operation and management of the
              collateral (subject always to proviso (x) and (y) in (i)(A) and
              (iv)(A) above) and entering into such documents as may reasonably
              be requested by Party A in connection with the provision of such
              collateral.

(l)      ADDITIONAL REPRESENTATION

         Section 3 is amended by the addition at the end thereof of the
         following additional representations:-

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

         (ii) The following additional representation shall be given by Party A
              only:

              "(h) PARI PASSU. Its obligations under this Agreement rank pari
              passu with all of its other unsecured, unsubordinated obligations
              except those obligations preferred by operation of law."

(m)      RECORDING OF CONVERSATIONS

         Each party to this Agreement acknowledges and agrees to the tape
         recording of conversations between the parties to this Agreement
         whether by one or other or both of the parties.

(n)      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

                                       14

<PAGE>

              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 (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
              or an adviser for it in respect of that Transaction."

(o)      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 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.

                                       15

<PAGE>

          (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 any
                         deduction or withholding giving rise to such payment or
                         in the case of Section 2(d)(ii)(B) the amount to be
                         assessed, it shall pay to Party A on the next Interest
                         Payment Date after receipt of the same so much of the
                         cash benefit (as calculated 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 (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

                                       16

<PAGE>

                         together, in either case, with any related interest or
                         similar payment obtained by Party B; and

                    (3)  It will use all reasonable endeavours to obtain any Tax
                         credit, allowance, set-off or repayment as soon as is
                         reasonably practicable provided that it shall be the
                         sole judge of the amount of any such Tax credit,
                         allowance, set-off or repayment 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, allowance, set-off
                         or repayment 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."

(p)      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 short term
         unsecured, unsubordinated and unguaranteed debt obligation rating of at
         least P-1 (in the case of Moody's) and A-1 (in the case of S&P)."

(q)      CONDITION PRECEDENT

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

(r)      REPRESENTATIONS

         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.

(s)      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) as amended in the Schedule,
               Party A may transfer all its interest and obligations in and
               under this Agreement upon providing five Business Days prior
               written notice to the Note Trustee, to any other entity (a
               "Transferee") provided that:

                                       17

<PAGE>

               (a)  the Transferee's long-term, unguaranteed, unsecured and
                    unsubordinated debt obligations are then rated not less than
                    "AA-" by S&P, "A1" by Moody's and "AA-" 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, unguaranteed, unsecured and
                    unsubordinated debt obligations are then rated not less than
                    "AA-" by S&P, "A1" by Moody's and "AA-" by Fitch (or its
                    equivalent by any substitute rating agency);

               (b)  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;

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

               (d)  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

               (e)  (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 Notes will not be adversely affected.

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

          (ii) Save as otherwise provided for in this Agreement and
               notwithstanding Section 7, Party A shall not be permitted to
               transfer (by way of security or otherwise) this Agreement nor any
               interest or obligation in or under this Agreement without the
               prior written consent of the Note Trustee.

(t)      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.

(u)      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 15.3(l)(i) (Dollar Currency Swap
         Agreements) of the Current Issuer Deed of Charge, upon the occurrence
         of an Event of Default or an Additional Termination Event with respect
         to Party A, 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:

                                       18

<PAGE>

          (i)  For the purposes of Clause 6(d)(i), 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 existing
                    confirmations hereto (and the Reference Market-maker is
                    rated not less than "AA-" by S&P, "A1" by Moody's and "AA-"
                    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 such Rating Agency) or
                    the Rating Agencies have confirmed in writing such proposed
                    documentation will not adversely impact the ratings of the
                    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 either (a) the lower of the two quotations where
                    there would be a sum payable by Party A to Party B, or (b)
                    the higher of the two quotations where there would be a sum
                    payable by Party B to Party A. 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 (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 6 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

                                       19
<PAGE>

                    Market Quotation in respect of the Terminated Transaction
                    cannot be determined.

          (iv) Party B will be deemed to have discharged its obligations under
               (iii)(A) above if it promptly requests, in writing, Party A (such
               request to be made within two Local Business Days after the
               occurrence of the Early Termination Date) to obtain 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.

                                       20

<PAGE>

                                   APPENDIX A

                                       1
<PAGE>

                                                        (SERIES 2 CLASS A NOTES)

From:             CDC IXIS Capital Markets
                  Cannon Bridge
                  25 Dowgate Hill
                  London EC4R 2GN

To:               Granite Mortgages 02-2 plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

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

Attention:        Corporate Trust (Global Structured Finance)

                                                              23 September, 2002

Dear Sirs,

RE:      CROSS CURRENCY SWAP TRANSACTIONS RELATING TO GRANITE MORTGAGES 02-2 PLC
         [X]1,100,000,000 SERIES 2 CLASS A NOTES DUE JANUARY 2043

The purpose of this letter is to confirm the terms and conditions of the swap
transactions entered into between us on the Trade Date specified below (the
"SWAP TRANSACTIONS"). This letter constitutes a "CONFIRMATION" as referred to in
the 1992 ISDA Master Agreement (Multicurrency-Cross Border) entered into between
us and both of you on the date hereof as amended and supplemented from time to
time (the "AGREEMENT").

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps & Derivatives Association, Inc. (the
"DEFINITIONS") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
shall prevail. Any terms not otherwise defined herein or in the Definitions
shall have the meanings given to them in the Master Definitions Schedule as
amended and restated by (and appearing in Appendix 1 to) the Master Definitions
Schedule Third Amendment Deed executed by, among others, the Note Trustee on 23
September 2002 and the Issuer Master Definitions Schedule signed for the
purposes of identification by Sidley Austin Brown & Wood and Allen & Overy on 23
September, 2002 (as the same have been and may be amended, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule specified above shall prevail to the extent
that it conflicts with the Master Definitions Schedule.

                                       2
<PAGE>

1       This Confirmation supplements, forms part of, and is subject to, the
        Agreement. All provisions contained in, incorporated in, or incorporated
        by reference to, the Agreement shall govern this Confirmation except as
        expressly modified below.

2       The terms of the particular Swap Transactions to which this Confirmation
        relates are as follows:

Party A:                                  CDC IXIS Capital Markets

Party B:                                  Granite Mortgages 02-2 plc

Trade Date:                               10 September, 2002

Effective Date:                           23 September, 2002

Termination Date:                         The earlier of (i) the Payment Date
                                          falling in January 2043 and (ii) the
                                          date on which the Series 2 Class A
                                          Notes are redeemed or repaid in full

Payment Date:                             Each Payment Date in respect of the
                                          Series 2 Class A Notes

EUR Amortisation Amount:                  in respect of a Payment Date, the
                                          amount (in EUR) to be applied in
                                          repayment of the principal amount of
                                          the Series 2 Class A Notes on such
                                          Payment Date as notified to the
                                          Calculation Agent by the Cash Manager

Exchange Rate:                            GBP 1.00:EUR 1.57

A. FLOATING PAYMENTS

FLOATING AMOUNTS FOR PARTY A:

Floating Rate Payer:                      Party A

Party A Currency Amount:                  EUR 1,100,000,000

Party A Payment Dates:                    each Payment Date

Floating Rate Option:                     EUR-EURIBOR - Telerate

                                       3
<PAGE>

Designated Maturity:                      3 months; except for the initial
                                          Calculation Period which shall be the
                                          linear interpolation of 3 and 4 months

Spread A for the Calculation Periods      0.19% per annum
up to and including the Calculation
Period ending immediately prior to
the Payment Date in January 2008:

Spread A for the Calculation Periods      0.38% per annum
from and including the Calculation
Period beginning on (and including)
the Payment Date in January 2008:

Party A Floating Rate Day Count
Fraction:                                 Actual/360

Reset Dates:                              The first day of each Calculation
                                          Period

FLOATING AMOUNTS FOR PARTY B:

Floating Rate Payer:                      Party B

Party B Currency Amount:                  GBP 700,636,943

Party B Payment Dates:                    Each Payment Date

Floating Rate Option:                     GBP-LIBOR-BBA

Designated Maturity:                      3 months except for the initial
                                          Calculation Period which shall be the
                                          linear interpolation of 3 and 4 months

Spread B for the Calculation Periods      0.18% per annum
up to and including the Calculation
Period ending immediately prior to
the Payment Date in January 2008:

Spread B for the Calculation Periods      0.66% per annum
from and including the Calculation
Period beginning on (and including)
the Payment Date in January 2008 up
to and including the Calculation
Period ending immediately prior to
the Termination Date:

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

                                        4
<PAGE>

Reset Dates:                              the first day of each Calculation
                                          Period

Calculation Agent:                        Party A

B. EXCHANGE:

Initial Exchange Date:                    Effective Date

Party A Initial Exchange Amount:          Party B Currency Amount

Party B Initial Exchange Amount:          Party A Currency Amount

Final Exchange Date:                      Termination Date

Party A Final Exchange Amount:            Party A Currency Amount

Party B Final Exchange Amount:            Party B Currency Amount

The Transactions referred to above are hereinafter referred to as the "PRINCIPAL
TRANSACTION"

C. CONDITIONAL INTEREST RATE AND CURRENCY TRANSACTIONS

The terms set out below are applicable to each of the additional interest rate
and currency Transactions (comprising the Additional Initial Exchanges Amounts
and Additional Final Exchange Amounts, Party A Additional Floating Amounts and
Party B Additional Floating Amounts set out below). The following terms reflect
such additional 110,000 Transactions each on the terms set out below and each
such Transaction shall be referred to in numerical sequence beginning with
"Transaction 1" through "Transaction 110,000" (together, the "CONDITIONAL
TRANSACTIONS") and such Transactions are to become effective on a sequential
basis, starting on the first Additional Initial Exchange Date on which the
conditions referred to below are satisfied for that Transaction.

The first Transaction shall be conditional upon the EUR Amortisation Amount for
any Payment Date being greater than or equal to the Party B Additional Currency
Amount (as defined below) (each a "FIRST CONDITION") and each subsequent
Transaction shall be conditional upon, (i) the First Condition having occurred,
(ii) the immediately preceding Transactions having become effective, and (iii)
the then relevant EUR Amortisation Amount less the aggregate of the Party A
Additional Initial Exchange Amounts of the preceding Transactions which have
become effective on (but not prior to) the relevant Additional Initial Exchange
Date equalling or exceeding the Party A Additional Initial Exchange Amount on
such Transaction.

On each Calculation Date, Party B shall notify Party A as to the EUR
Amortisation Amount and the Conditional Transactions in numerical order that are
then currently effective and are to become effective on the next Party A Payment
Date.

                                       5
<PAGE>

(1) ADDITIONAL INITIAL EXCHANGE AMOUNTS
AND ADDITIONAL FINAL EXCHANGE AMOUNTS

Additional Initial Exchange Date and      the Payment Date on which the
the Effective Date:                       conditions referred to above for the
                                          relevant Transaction comprising one of
                                          the Conditional Transactions are
                                          satisfied (being the "RELEVANT PAYMENT
                                          DATE" for that Transaction)

Party A Additional Initial Exchange
Amount:                                   Party B Additional Currency Amount

Party B Additional Initial Exchange
Amount:                                   Party A Additional Currency Amount

Party A Additional Final Exchange
Amount:                                   Party A Additional Currency Amount

Party B Additional Final Exchange
Amount:                                   Party B Additional Currency Amount

Additional Final Exchange Date:           Termination Date

(2) ADDITIONAL FLOATING AMOUNTS

PARTY A ADDITIONAL FLOATING AMOUNTS

Party A Additional Currency Amount:       GBP 6369.43

Party A Additional Floating Amount
Payer:                                    Party A

Party A Additional Floating Amount        each Payment Date following the
Payer Payment Dates:                      Relevant Payment Date

Party A Additional Floating Rate
Option:                                   GBP - LIBOR - BBA

Designated Maturity:                      3 months

Spread A for the Calculation Periods      0.18% per annum
up to and including the Calculation
Period ending immediately prior to
the Payment Date in January 2008:

Spread A for the Calculation Periods
from and including 0.66% per annum
the Calculation Period beginning on
(and including) the Payment Date in
January 2008:

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

                                       6
<PAGE>

Reset Dates:                              The first day of each Calculation
                                          Period

PARTY B ADDITIONAL FLOATING AMOUNTS

Party B Additional Currency Amount:       EUR 10,000

Party B Additional Floating Amount        Party B
Payer:

Party B Additional Floating Amount        each Party A Payment Date following
Payer Payment Date:                       the Relevant Payment Date

Party B Additional Floating Rate          EUR - EURIBOR - Telerate
Option:

Designated Maturity:                      3 months

Spread B For the Calculation Period       0.19% per annum
up to and including the Calculation
Period ending immediately prior to
the Payment Date in January 2008:

Spread B for the Calculation Period       0.38% per annum
from and including the Calculation
Period beginning on (and including)
the Payment Date in January 2008:

Party B Additional Floating Rate Day      Actual/360
Count Fraction:

Reset Dates:                              the first day of each Calculation
                                          Period

(3) ACCOUNT DETAILS:

PAYMENTS TO PARTY A:

Account for Payments in EUR:              CDC IXIS
                                          ParisSwift:  CDCFFRPP (RIB:
                                          14598-00001-000430299HB60)
                                          Beneficiary Institution: CDC IXIS
                                          Capital Markets, Paris (CDCMFRPP)

Account for Payments in GBP:              Barclays Bank PLC
                                          LondonSwift:  BARCGB22
                                          Beneficiary Institution: CDC IXIS,
                                          Paris (CDCFFRPP)
                                          Further Credit: CDC IXIS Capital
                                          Markets, Paris (CDCMFRPP)

                                       7
<PAGE>

PAYMENTS TO PARTY B:

Account for Payments in EUR:              Citibank, N.A., London
                                          Agency and Trust
                                          S.W.I.F.T. CITIGB2L
                                          for further credit to
                                          A/C Granite Mortgages 02-2 plc
                                          A/C 10456853.

Account for Payments in GBP:              Citibank N.A., London
                                          8378088
                                          Agency and Trust
                                          Sort Code 18-50-08
                                          for further credit to
                                          A/C Granite Mortgages 02-2 plc
                                          A/C 10456845.

(4) NOTICE DETAILS:

Party A:                                  CDC IXIS Capital Markets

Address:                                  Cannon Bridge
                                          25 Dowgate Hill
                                          London EC4R 2GN

Facsimile Number:                         0207 648 6901

Attention:                                Guillaume Barrier (Head of Strategic
                                          Credit) and Brett Townsend/John Powell
                                          (Derivative Sales)

With a copy to:                           CDC IXIS Capital Markets
                                          56, rue de Lille
                                          75356 Paris

Attention:                                Emmanuel Baud (Joint Head of
                                          Derivative Products BO)

Facsimile No.:                            + 33 1 4049 1301

Attention:                                Sophie Gallouin (Head of Derivative
                                          Products BO)

Facsimile No.:                            + 33 1 4049 1301

Party B:                                  Granite Mortgages 02-2 plc

                                       8
<PAGE>

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:                         44-191-279-4694

Attention:                                Keith M. Currie

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

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

Facsimile Number:                         020 7964 6061

(5) OFFICES:                              The Office of Party A for each of the
                                          Transactions evidenced by this
                                          Confirmation is London.

(6) MISCELLANEOUS:

(a) Section 2(c)(ii) of the Agreement will not apply to the Transactions
    evidenced by this Confirmation.

(b) If any payment of any amounts by Party A and Party B is deferred in
    accordance with Section 5(h)(iii) of the Schedule to this agreement then the
    amount so deferred on the Party A Floating Amount shall, subject to the
    terms of this Agreement, be payable on the next Party A Payment Date
    (together with an additional floating amount accrued thereon at the
    applicable Party A Floating Rate) and the Party A Floating Amount due on
    such date shall be deemed to include such amounts.

    The amount so deferred on the Party B Floating Amount shall, subject to the
    terms of this Agreement, be payable on the next Party B Payment Date
    (together with an additional floating amount accrued thereon accrued at the
    applicable Party B Floating Rate) and the Party B Floating Amount due on
    such date shall be deemed to include such amounts.

                                       9
<PAGE>

Yours faithfully,

CDC IXIS CAPITAL MARKETS

By:

Name:
Title:  As attorney for CDC IXIS Capital Markets

By:

Name:
Title:  As attorney for CDC IXIS Capital Markets

Confirmed as of the date first written:

GRANITE MORTGAGES 02-2 PLC

By:

Name:
Title:

THE BANK OF NEW YORK
     as Note Trustee

By:

Name:
Title:

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]