Document:

Exhibit 10.3

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                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                  as Seller,

                                      and

                       POOLED AUTO SECURITIES SHELF LLC,
                                 as Purchaser

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

                        RECEIVABLES PURCHASE AGREEMENT

                        Dated as of _________ __, 200_

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

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                               TABLE OF CONTENTS

                                                                          Page
                                                                          ----

                                  ARTICLE ONE

                                  DEFINITIONS

Section 1.01.  Definitions...................................................1
Section 1.02.  Other Definitional Provisions.................................6

                                  ARTICLE TWO

                           CONVEYANCE OF RECEIVABLES

Section 2.01.  Sale and Conveyance of Receivables............................7
Section 2.02.  Purchase Price; Payments on the Receivables...................9
Section 2.03.  Transfer of Receivables......................................10
Section 2.04.  Examination of Receivable Files..............................10
Section 2.05.  Expenses.....................................................10

                                 ARTICLE THREE

                        REPRESENTATIONS AND WARRANTIES

Section 3.01.  Representations and Warranties of the Purchaser..............11
Section 3.02.  Representations and Warranties of the Seller.................12
Section 3.03.  Representations and Warranties as to the Receivables.........14

                                 ARTICLE FOUR

                                  CONDITIONS

Section 4.01.  Conditions to Obligation of the Purchaser....................16
Section 4.02.  Conditions to Obligation of the Seller.......................19

                                 ARTICLE FIVE

                            COVENANTS OF THE SELLER

Section 5.01.  Protection of Right, Title and Interest in, to and
               Under the Receivables........................................20
Section 5.02.  Security Interests...........................................21
Section 5.03.  Delivery of Payments.........................................21
Section 5.04.  No Impairment................................................21
Section 5.05.  Costs and Expenses...........................................22
Section 5.06.  Sale.........................................................22
Section 5.07.  Hold Harmless................................................22

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                                  ARTICLE SIX

                                INDEMNIFICATION

Section 6.01.  Indemnification..............................................23

                                 ARTICLE SEVEN

                           MISCELLANEOUS PROVISIONS

Section 7.01.  Amendment....................................................26
Section 7.02.  Termination..................................................26
Section 7.03.  GOVERNING LAW................................................26
Section 7.04.  Notices......................................................26
Section 7.05.  Severability of Provisions...................................26
Section 7.06.  Further Assurances...........................................27
Section 7.07.  No Waiver; Cumulative Remedies...............................27
Section 7.08.  Counterparts.................................................27
Section 7.09.  Third-Party Beneficiaries....................................27
Section 7.10.  Headings.....................................................27
Section 7.11.  Representations, Warranties and Agreements to Survive........27
Section 7.12.  No Proceedings...............................................27

                                   SCHEDULES

Schedule A - Schedule of Receivables......................................SA-1
Schedule B - Location of Receivable Files.................................SB-1

                                   EXHIBITS

Exhibit A - Representations and Warranties as to the Receivables...........A-1
Exhibit B - Form of First-Tier Initial Assignment..........................B-1
Exhibit C - Form of First-Tier Subsequent Assignment.......................C-1
Exhibit D - Officer's Certificate of Wachovia Bank.........................D-1
Exhibit E - Opinion of Counsel for Wachovia Bank...........................E-1

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                        RECEIVABLES PURCHASE AGREEMENT

     This Receivables Purchase Agreement, dated as of _________ __, 200_ is
between Wachovia Bank, National Association, a national banking association
("Wachovia Bank"), as seller (the "Seller"), and Pooled Auto Securities Shelf
LLC, a Delaware limited liability company ("PASS"), as purchaser (the
"Purchaser").

     WHEREAS, in the regular course of its business, the Seller purchases
motor vehicle retail installment sale contracts secured by new and used motor
vehicles (the "Receivables");

     WHEREAS, the Seller intends to convey all of its right, title and
interest in and to certain initial Receivables to the Purchaser on __________
__, 200_, and certain subsequent Receivables to the Purchaser from time to
time thereafter, and the Purchaser shall convey all of its right, title and
interest in and to the Receivables to Wachovia Auto Owner Trust 200_-_ (the
"Issuer") pursuant to the sale and servicing agreement, dated as of __________
__, 200_, among the Issuer, PASS, and Wachovia Bank; and

     WHEREAS, the Seller and the Purchaser wish to set forth the terms
pursuant to which the Receivables are to be sold by the Seller to the
Purchaser.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

                                  ARTICLE ONE

                                  DEFINITIONS

     Section 1.01. Definitions. Whenever used in this Agreement, the following
words and phrases shall have the following meanings:

     "Agreement" means this Receivables Purchase Agreement.

     "Amount Financed" has the meaning specified in the Sale and Servicing
Agreement.

     "Basic Documents" has the meaning specified in the Sale and Servicing
Agreement.

     "Certificate" has the meaning specified in the Trust Agreement.

     "Certificateholder" has the meaning specified in the Trust Agreement.

     "Class A Note" has the meaning specified in the Indenture.

     "Class B Final Scheduled Distribution Date" has the meaning specified in
the Indenture.

     "Closing Date" has the meaning specified in the Indenture.

     "Collateral Term Sheet" has the meaning specified in the Underwriting
Agreement.

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     "Collection Period" has the meaning specified in the Indenture.

     "Commission" has the meaning specified in the Sale and Servicing
Agreement.

     "Computational Materials" has the meaning specified in the Underwriting
Agreement.

     "Contract Rate" has the meaning specified in the Sale and Servicing
Agreement.

     "Controlling Class" has the meaning specified in the Indenture.

     "Cutoff Date" has the meaning specified in the Sale and Servicing
Agreement.

     "Dealer" has the meaning specified in the Sale and Servicing Agreement.

     "Dealer Agreement" has the meaning specified in the Sale and Servicing
Agreement.

     "Dealer Recourse" has the meaning specified in the Sale and Servicing
Agreement.

     "Deposit Date" has the meaning specified in Sale and Servicing Agreement.

     "Depositor" has the meaning specified in the Trust Agreement.

     "DTC" means The Depository Trust Company.

     "Exchange Act" has the meaning specified in the Indenture.

     "FDIC Rule" means 12 C.F.R. Section 360.6.

     "Financed Vehicle" has the meaning specified in the Sale and Servicing
Agreement.

     "First-Tier Initial Assignment" means the First-Tier Initial Assignment,
in substantially the form of Exhibit B hereto.

     "First-Tier Subsequent Assignment" means a First-Tier Subsequent
Assignment, in substantially the form of Exhibit C hereto.

     "Holder" has the meaning specified in the Trust Agreement.

     "Indenture" means the indenture, dated as of __________ __, 200_, between
the Issuer and the Indenture Trustee.

     "Indenture Trustee" has the meaning specified in the Indenture.

     "Initial Cutoff Date" has the meaning specified in the Sale and Servicing
Agreement.

     "Initial Receivables" has the meaning specified in the Sale and Servicing
Agreement.

     "Initial Receivables Purchase Price" means $____________.

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     "Issuer" has the meaning specified in the recitals.

     "Lien" has the meaning specified in the Sale and Servicing Agreement.

     "Master Servicer" has the meaning specified in the Sale and Servicing
Agreement.

     "Monthly Payment" has the meaning specified in the Sale and Servicing
Agreement.

     "Moody's" has the meaning specified in the Indenture.

     "Net Liquidation Proceeds" has the meaning specified in the Sale and
Servicing Agreement.

     "Note Balance" has the meaning specified in the Indenture.

     "Noteholders" has the meaning specified in the Indenture.

     "Notes" has the meaning specified in the Indenture.

     "Obligor" has the meaning specified in the Sale and Servicing Agreement.

     "Officer's Certificate" has the meaning specified in the Sale and
Servicing Agreement

     "Opinion of Counsel" has the meaning specified in Sale and Servicing
Agreement.

     "Owner Trustee" has the meaning specified in the Trust Agreement.

     "PASS" has the meaning specified in the preamble.

     "PASS Holding" means PASS Holding LLC.

     "Pre-Funding Account" has the meaning specified in the Sale and Servicing
Agreement.

     "Principal Balance" has the meaning specified in the Sale and Servicing
Agreement.

     "Preliminary Prospectus" means the preliminary prospectus supplement,
dated __________ __, 200_, and the prospectus, dated ___________ __, 200_, of
the Purchaser relating to the public offering by the Purchaser of the
Underwritten Notes.

     "Prospectus" means the prospectus supplement, dated __________ __, 200_,
and the prospectus, dated __________ __, 200_, of the Purchaser relating to
the public offering by the Purchaser of the Underwritten Notes.

     "Purchase Amount" has the meaning specified in Sale and Servicing
Agreement.

     "Purchase Price" means the Initial Receivables Purchase Price or the
Subsequent Purchase Price, as the context may require.

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     "Purchaser" means PASS, in its capacity as purchaser of the Receivables
under this Agreement, and its successors in such capacity.

     "Rating Agency" has the meaning specified in the Indenture.

     "Rating Agency Condition" has the meaning specified in the Indenture.

     "Receivable" means each motor vehicle retail installment sale contract
sold by the Seller to the Purchaser pursuant to this Agreement and identified
on the Schedule of Receivables.

     "Receivable Files" has the meaning specified in the Sale and Servicing
Agreement.

     "Recoveries" has the meaning specified in the Sale and Servicing
Agreement.

     "Representative" means Wachovia Capital Markets, LLC, as representative
of the Underwriters.

     "Reserve Fund" has the meaning specified in the Sale and Servicing
Agreement.

     "Reserve Fund Initial Deposit" has the meaning specified in Sale and
Servicing Agreement.

     "Sale and Servicing Agreement" means the sale and servicing agreement,
dated as of __________ __, 200_, among the Issuer, the Depositor, the Seller
and the Master Servicer.

     "Schedule of Initial Receivables" means the schedule of Receivables
attached as Schedule A.

     "Schedule of Receivables" means the Schedule of Initial Receivables, as
supplemented by one or more Schedules of Subsequent Receivables.

     "Schedule of Subsequent Receivables" means any list of Subsequent
Receivables attached as Schedule A to the related First-Tier Subsequent
Assignment.

     "Securities" means the Notes and the Certificates.

     "Securities Act" has the meaning specified in the Sale and Servicing
Agreement.

     "Seller" means Wachovia Bank, in its capacity as seller of the
Receivables under this Agreement, and its successors in such capacity.

     "Seller Information" means the information set forth in the Prospectus
under the headings "Summary - Principal Parties - Seller and Master Servicer",
"Risk Factors - Geographic concentration may result in more risk to you", "The
Receivables Pool", "The Seller" and "Material Legal Issues Relating to the
Receivables".

     "Simple Interest Receivable" has the meaning specified in the Sale and
Servicing Agreement.

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     "Standard & Poor's" has the meaning specified in the Indenture.

     "State" has the meaning specified in the Indenture.

     "Structural Term Sheet" has the meaning specified in the Underwriting
Agreement.

     "Subsequent Cutoff Date" has the meaning specified in the Sale and
Servicing Agreement.

     "Subsequent Receivables" has the meaning specified in the Sale and
Servicing Agreement.

     "Subsequent Receivables Purchase Price" means, with respect to any
Subsequent Receivables to be sold, transferred, assigned and otherwise
conveyed to the Purchaser on the related Subsequent Transfer Date, the
Principal Balance of such Subsequent Receivables as of the related Subsequent
Cutoff Date, plus any premium or minus any discount agreed upon by the Seller
and the Purchaser.

     "Subsequent Transfer Date" has the meaning specified in the Sale and
Servicing Agreement.

     "Term Sheet" means any term sheet prepared by the Purchaser relating to
the public offering of the Underwritten Notes by the Purchaser.

     "Trust Agreement" means the amended and restated trust agreement, dated
as of __________ __, 200_, between the Depositor and the Owner Trustee.

     "Trustee" means either the Owner Trustee or the Indenture Trustee, as the
context requires.

     "UCC" has the meaning specified in the Indenture.

     "Underwriters" means the underwriters named in Schedule A to the
Underwriting Agreement.

     "Underwriting Agreement" means the underwriting agreement, dated
__________ __, 200_, between PASS and the Representative.

     "Underwritten Notes" means the Class A Notes.

     "United States" has the meaning specified in the Indenture.

     "Wachovia Bank" has the meaning specified in the Sale and Servicing
Agreement.

     "Yield Supplement Account" has the meaning specified in the Sale and
Servicing Agreement.

     "Yield Supplement Account Initial Deposit" has the meaning specified in
the Sale and Servicing Agreement.

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     Section 1.02. Other Definitional Provisions.

     (a) Capitalized terms used herein that are not otherwise defined shall
have the meanings ascribed thereto in the Indenture or the Sale and Servicing
Agreement, as the case may be.

     (b) With respect to all terms in this Agreement, unless the context
otherwise requires: (i) a term has the meaning assigned to it; (ii) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from
time to time in the United States; (iii) "or" is not exclusive; (iv)
"including" means including without limitation; (v) words in the singular
include the plural and words in the plural include the singular; (vi) any
agreement, document, instrument or statute defined or referred to herein or in
any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments)
references to all attachments thereto and instruments incorporated therein;
(vii) references to a Person are also to its successors and permitted assigns;
(viii) the words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; (ix) Section,
subsection, Schedule and Exhibit references contained in this Agreement are
references to Sections, subsections, Schedules and Exhibits in or to this
Agreement unless otherwise specified; (x) references to "writing" include
printing, typing, lithography and other means of reproducing words in a
visible form; and (xi) the term "proceeds" has the meaning set forth in the
applicable UCC.

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                                  ARTICLE TWO

                           CONVEYANCE OF RECEIVABLES

     Section 2.01. Sale and Conveyance of Receivables. On the Closing Date and
on each Subsequent Transfer Date, subject to the terms and conditions of this
Agreement, the Seller agrees to sell to the Purchaser, and the Purchaser
agrees to purchase from the Seller, the Receivables set forth in the related
Schedule of Initial Receivables or Schedule of Subsequent Receivables, as
applicable and the other property relating thereto (as described below).

     (a) Subject to satisfaction of the conditions set forth in Section
4.01(a), on the Closing Date, and simultaneously with the transactions to be
consummated pursuant to the Indenture, the Sale and Servicing Agreement and
the Trust Agreement, the Seller shall, pursuant to the First-Tier Initial
Assignment, sell, transfer, assign and otherwise convey to the Purchaser, and
the Purchaser hereby purchases from the Seller, without recourse (subject to
the Seller's obligations hereunder), all of the right, title and interest of
the Seller in, to and under, whether now owned or existing or hereafter
acquired or arising, in, to and under the following:

          (i) the Initial Receivables and all amounts due and collected on or
     in respect of the Initial Receivables (including proceeds of the
     repurchase of Initial Receivables by the Seller pursuant to Section
     3.03(c)) after the Initial Cutoff Date;

          (ii) the security interests in the Financed Vehicles granted by the
     Obligors pursuant to the Initial Receivables and any other interest of
     the Seller in such Financed Vehicles;

          (iii) all proceeds from claims on or refunds of premiums of any
     physical damage or theft insurance policies and extended warranties
     covering such Financed Vehicles and any proceeds or refunds of premiums
     of any credit life or credit disability insurance policies relating to
     the Initial Receivables, the related Financed Vehicles or the related
     Obligors;

          (iv) the Receivable Files that relate to the Initial Receivables;

          (v) any proceeds of Dealer Recourse that relate to the Initial
     Receivables;

          (vi) the right to realize upon any property (including the right to
     receive future Net Liquidation Proceeds and Recoveries) that shall have
     secured an Initial Receivable and have been repossessed by or on behalf
     of the Seller; and

          (vii) all present and future claims, demands, causes of action and
     choses in action in respect of any or all of the foregoing, and all
     payments on or under and all proceeds of every kind and nature whatsoever
     in respect of any or all of the foregoing, including all proceeds of the
     conversion thereof, voluntary or involuntary, into cash or other liquid
     property, all accounts, accounts receivable, general intangibles, chattel
     paper, documents, money, investment property, deposit accounts, letters
     of credit, letter of credit rights, insurance proceeds, condemnation
     awards, notes, drafts, acceptances, rights to payment of any and every
     kind and other forms of obligations and receivables,

                                      7
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     instruments and other property which at any time constitute all or part
     of or are included in the proceeds of any of the foregoing.

     (b) Subject to the satisfaction of the conditions set forth in Section
4.01(b), the Depositor shall, pursuant to a First-Tier Subsequent Assignment,
irrevocably sell, transfer, assign and otherwise convey to the Issuer, without
recourse (subject to the obligations of the Depositor set forth herein), all
right, title and interest of the Depositor, whether now owned or existing or
hereafter acquired or arising, in, to and under the following:

          (i) the Subsequent Receivables listed on the related Schedule of
     Subsequent Receivables and all amounts due and collected on or in respect
     of the Subsequent Receivables (including proceeds of the repurchase of
     Subsequent Receivables by the Seller pursuant to Section 3.03(c)) after
     the related Subsequent Cutoff Date;

          (ii) the security interests in the Financed Vehicles granted by the
     Obligors pursuant to the Subsequent Receivables and any other interest of
     the Seller in such Financed Vehicles;

          (iii) all proceeds from claims on or refunds of premiums of any
     physical damage or theft insurance policies and extended warranties
     covering such Financed Vehicles and any proceeds of or refunds of
     premiums of any credit life or credit disability insurance policies
     relating to the Subsequent Receivables, the related Financed Vehicles or
     the related Obligors;

          (iv) the Receivable Files that relate to the Subsequent Receivables;

          (v) any proceeds of Dealer Recourse that relate to the Subsequent
     Receivables;

          (vi) the right to realize upon any property (including the right to
     receive future Net Liquidation Proceeds and Recoveries) that shall have
     secured a Subsequent Receivable and have been repossessed by or on behalf
     of the Seller;

          (vii) all of the Seller's rights under the related First-Tier
     Subsequent Assignment; and

          (viii) all present and future claims, demands, causes of action and
     choses in action in respect of any or all of the foregoing, and all
     payments on or under and all proceeds of every kind and nature whatsoever
     in respect of any or all of the foregoing, including all proceeds of the
     conversion thereof, voluntary or involuntary, into cash or other liquid
     property, all accounts, accounts receivable, general intangibles, chattel
     paper, documents, money, investment property, deposit accounts, notes,
     drafts, acceptances, letters of credit, letter of credit rights,
     insurance proceeds, condemnation awards, rights to payment of any and
     every kind and other forms of obligations and receivables, instruments
     and other property which at any time constitutes all or part of, or is
     included in, the proceeds of any of the foregoing.

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     (c) In connection with each of the foregoing conveyances, the Seller
further agrees, at its own expense, on or prior to the Closing Date (in the
case of the Initial Receivables) or the related Subsequent Transfer Date (in
the case of the Subsequent Receivables) to (i) annotate and indicate in its
books, records and computer files that the related Receivables have been sold
and transferred to the Purchaser pursuant to this Agreement, (ii) deliver to
the Purchaser a computer file or printed or microfiche list of the Schedule of
Initial Receivables or, in the case of Subsequent Receivables, the related
Schedule of Subsequent Receivables containing a true and complete list of the
related Receivables, identified by account number and by the Principal Balance
as of the related Cutoff Date, each of which files or lists shall be marked as
Schedule A and is hereby incorporated into and made a part of this Agreement
and (iii) deliver or cause to be delivered the related Receivable Files to or
upon the order of the Purchaser.

     (d) The parties hereto intend that each conveyance of Receivables and
related property hereunder be a sale and not a loan. In the event that any
conveyance hereunder is for any reason not considered a sale, including in the
event of an insolvency proceeding with respect to the Seller or any of the
Seller's properties, the Seller hereby grants to the Purchaser a first
priority perfected security interest in all of the Seller's right, title and
interest in, to and under the related Receivables, and all other property
conveyed hereunder and all proceeds of the foregoing. The parties intend that
this Agreement constitute a security agreement under applicable law. Such
grant is made to secure the payment of all amounts payable hereunder,
including the Initial Receivables Purchase Price and any Subsequent
Receivables Purchase Price. If any such conveyance is for any reason
considered to be a loan and not a sale, the Seller consents to the Purchaser
transferring such security interest in favor of the Indenture Trustee and
transferring the obligation secured thereby to the Indenture Trustee.

     (e) The Seller and the Purchaser intend that the (i) FDIC Rule shall
apply to the transactions contemplated by this Agreement and the other Basic
Documents and (ii) transactions contemplated by this Agreement and the other
Basic Documents, taken as a whole, constitute a "securitization" within the
meaning of the FDIC Rule.

     Section 2.02. Purchase Price; Payments on the Receivables.

     (a) On the Closing Date, in exchange for the Receivables and other assets
described in Section 2.01(a), the Purchaser shall pay the Seller the Initial
Receivables Purchase Price in cash or immediately available funds. The
Purchaser, as set forth in the Sale and Servicing Agreement, shall deposit,
from funds it receives from the sale of the Notes and Certificates, the (i)
Reserve Fund Initial Deposit into the Reserve Fund, (ii) Yield Supplement
Account Initial Deposit into the Yield Supplement Account, (iii) Pre-Funding
Account Initial Deposit into the Pre-Funding Account and (iv) the Maximum
Negative Carry Amount into the Negative Carry Account, each of which amounts
shall be an asset of the Issuer. PASS Holding shall receive and shall be the
Holder of, the Certificates.

     (b) On each Subsequent Transfer Date, in exchange for the Subsequent
Receivables and the other property related thereto described in Section
2.01(b) to be sold, transferred, assigned and otherwise conveyed to the
Purchaser on such Subsequent Transfer Date, the Purchaser shall pay to or upon
the order of the Seller, the related Subsequent Receivables Purchase Price in
cash. Such Subsequent Receivables Purchase Price shall be an amount equal

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to the funds it receives from the Pre-Funding Account pursuant to Section
4.08(a) of the Sale and Servicing Agreement, relating to the sale of such
Subsequent Receivables, and payments relating to increases in the value of the
Certificate (as more fully described in Section 2 of the Purchase Agreement)
due to such Subsequent Receivables, less, the sum of (i) the Reserve Fund
Subsequent Deposit, which will be deposited into the Reserve Fund and (ii) the
Yield Supplement Account Subsequent Deposit, if any, which will be deposited
into the Yield Supplement Account, each of which amounts shall be an asset of
the Issuer.

     (c) The Purchaser shall be entitled to, and shall convey such right to
the Issuer pursuant to the Sale and Servicing Agreement, all amounts due and
collected on or in respect of the Receivables received after the related
Cutoff Date or Dates.

     Section 2.03. Transfer of Receivables. Pursuant to the Sale and Servicing
Agreement, the Purchaser will assign all of its right, title and interest in,
to and under the Receivables and other assets described in Sections 2.01(a)
and 2.01(b) to the Issuer. The parties hereto acknowledge that the Issuer will
pledge its rights in, to and under the Receivables and other assets described
in Sections 2.01(a) and 2.01(b) to the Indenture Trustee pursuant to the
Indenture. The Purchaser shall have the right to assign its interest under
this Agreement as may be required to effect the purposes of the Sale and
Servicing Agreement, without the consent of the Seller, and the Issuer as
assignee shall succeed to the rights hereunder of the Purchaser.

     Section 2.04. Examination of Receivable Files. The Seller will make the
Receivable Files available to the Purchaser or its agent for examination at
the Seller's offices or such other location as otherwise shall be agreed upon
by the Purchaser and the Seller.

     Section 2.05. Expenses. The Seller will reimburse the Purchaser for
certain of the expenses of the Purchaser in connection with the issuance and
delivery of the Securities and sale of the Notes, including: (i) expenses
incident to the printing, reproducing and distributing of the Term Sheet if
any, the Preliminary Prospectus and the Prospectus, (ii) any fees charged by
Moody's and Standard & Poor's in connection with the rating of the Notes,
(iii) the fees of DTC in connection with the book-entry registration of the
Notes, (iv) the reasonable expenses incurred by the Purchaser in connection
with the initial qualification of the Underwritten Notes for sale under the
laws of such jurisdictions in the United States as the Purchaser or the
Representative may designate, (v) the fees and disbursements of the Trustees
and their respective counsel, (vi) the fees and disbursements of Sidley Austin
llp, counsel to the Purchaser, in connection with the purchase of the
Receivables hereunder and the issuance and delivery of the Securities and sale
of the Underwritten Notes and (vii) the SEC registration fee in the amount
equal to the sum of the product of (a) _____________ and (b) $_______________.

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                                 ARTICLE THREE

                        REPRESENTATIONS AND WARRANTIES

     Section 3.01. Representations and Warranties of the Purchaser. The
Purchaser hereby represents and warrants to the Seller as of the date of this
Agreement, the Closing Date and as of each Subsequent Transfer Date that:

          (a) Organization and Good Standing. The Purchaser has been duly
     organized and is validly existing as a limited liability company in good
     standing under the laws of the State of Delaware, with power and
     authority to own its properties and to conduct its business as such
     properties are currently owned and such business is presently conducted,
     and had at all relevant times, and has, power, authority and legal right
     to acquire, own and purchase the Receivables.

          (b) Due Qualification. The Purchaser is duly qualified to do
     business as a foreign limited liability company in good standing and has
     obtained all necessary licenses and approvals in each jurisdiction in
     which the failure to so qualify or to obtain such licenses and approvals
     would, in the reasonable judgment of the Purchaser, materially and
     adversely affect the performance by the Purchaser of its obligations
     under, or the validity or enforceability of, this Agreement.

          (c) Power and Authority. The Purchaser has the power and authority
     to execute and deliver, and perform its obligations under, this Agreement
     and each other Basic Document to which it is a party. The Purchaser has
     full power and authority to sell and assign the property listed in
     Section 2.01(a) that it is acquiring from the Seller and shall sell and
     assign to and deposit with the Issuer such property and shall duly
     authorize such sale and assignment by all necessary limited liability
     company action; and the execution, delivery and performance of this
     Agreement and each other Basic Document to which the Purchaser is a party
     has been duly authorized by the Purchaser by all necessary limited
     liability company action.

          (d) No Violation. The execution, delivery and performance by the
     Purchaser of this Agreement and of the purchase of the Receivables and
     the consummation of the transactions contemplated hereby and by each
     other Basic Document to which it is a party and the fulfillment of the
     terms hereof and thereof will not conflict with, result in any breach of
     any of the terms and provisions of, nor constitute (with or without
     notice or lapse of time or both) a default under, the certificate of
     formation or limited liability company agreement of the Purchaser, nor
     conflict with or violate any of the material terms or provisions of, or
     constitute (with or without notice or lapse of time or both) a default
     under, any indenture, agreement or other instrument to which the
     Purchaser is a party or by which it shall be bound; nor result in the
     creation or imposition of any Lien upon any of its properties pursuant to
     the terms of any such indenture, agreement or other instrument (other
     than Liens created by this Agreement and the other Basic Documents); nor
     violate any law or, to the Purchaser's knowledge, any order, rule or
     regulation applicable to the Purchaser of any court or of any federal or
     State regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the

                                      11
<PAGE>

     Purchaser or its properties, which breach, default, conflict, Lien or
     violation would have a material adverse effect on the earnings, business
     affairs or business prospects of the Purchaser or on the ability of the
     Purchaser to perform its obligations under this Agreement.

          (e) No Proceedings. There are no proceedings or investigations
     pending, or to the Purchaser's knowledge, threatened against the
     Purchaser, before any court, regulatory body, administrative agency or
     other governmental instrumentality having jurisdiction over the Purchaser
     or its properties: (i) asserting the invalidity of this Agreement or any
     other Basic Document to which it is a party, (ii) seeking to prevent the
     issuance and delivery of the Securities, the sale of the Notes or the
     consummation of any of the transactions contemplated by this Agreement or
     any other Basic Document to which the Purchaser is a party or (iii)
     seeking any determination or ruling that might materially and adversely
     affect the performance by the Purchaser of its obligations under, or the
     validity or enforceability of, this Agreement or any other Basic Document
     to which it is a party.

     Section 3.02. Representations and Warranties of the Seller. The Seller
hereby represents and warrants to the Purchaser as of the date of this
Agreement, the Closing Date and as of each Subsequent Transfer Date that:

          (a) Organization and Good Standing. The Seller has been duly
     organized and is validly existing as a national banking association under
     the laws of the United States and continues to hold a valid certificate
     to do business as such, and has the power to own its assets and to
     transact the business in which it is currently engaged. The Seller is
     duly authorized to transact business and has obtained all necessary
     licenses and approvals, and is in good standing in each jurisdiction in
     which the character of the business transacted by it or any properties
     owned or leased by it requires such authorization.

          (b) Power and Authority. The Seller has the power and authority to
     execute and deliver and perform its obligations under this Agreement and
     each other Basic Document to which the Seller is a party, and the
     execution, delivery and performance of this Agreement and each other
     Basic Document to which the Seller is a party has been duly authorized by
     the Seller. When executed and delivered, this Agreement and the other
     Basic Documents to which the Seller is a party will constitute legal,
     valid and binding obligations of the Seller enforceable in accordance
     with their respective terms, except that such enforceability may be
     subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent
     conveyance, fraudulent transfer and other similar laws relating to or
     affecting creditors generally, and creditors of national banking
     associations and financial institutions the accounts of which are insured
     by the Federal Deposit Insurance Corporation in particular, and to
     general equitable principles (regardless of whether considered in a
     proceeding in equity or at law), including concepts of commercial
     reasonableness, good faith and fair dealing and the possible
     unavailability of specific performance or injunctive relief.

          (c) No Violation. The execution, delivery and performance by the
     Seller of this Agreement and the sale of the Receivables, the
     consummation of the transactions contemplated hereby and by each other
     Basic Document to which it is a party and the

                                      12
<PAGE>

     fulfillment of the terms hereof and thereof will not conflict with,
     result in a breach of any of the terms and provisions of, or constitute
     (with or without notice or lapse of time or both) a default under, its
     articles of incorporation or bylaws, nor conflict with or violate any of
     the material terms or provisions of, or constitute (with or without
     notice or lapse of time or both) a default under, any indenture,
     agreement or other instrument to which it is a party or by which it shall
     be bound; nor result in the creation or imposition of any Lien upon any
     of its properties pursuant to the terms of any such indenture, agreement
     or other instrument (other than this Agreement); nor violate any law or,
     to its knowledge, any order, rule or regulation applicable to it of any
     court or of any federal or State regulatory body, administrative agency
     or other governmental instrumentality having jurisdiction over it or its
     properties, which breach, default, conflict, Lien or violation would have
     a material adverse effect on the Seller's earnings, business affairs or
     business prospects or on the ability of the Seller to perform its
     obligations under this Agreement.

          (d) No Proceedings. There are no proceedings or investigations
     pending or, to the Seller's knowledge, threatened against the Seller
     before any court, regulatory body, administrative agency or other
     governmental instrumentality having jurisdiction over the Seller or its
     properties (i) asserting the invalidity of this Agreement or any other
     Basic Document to which the Seller is a party, (ii) seeking to prevent
     the issuance and delivery of the Securities, the sale of the Notes or the
     consummation of any of the transactions contemplated by this Agreement or
     any other Basic Document to which the Seller is a party or (iii) seeking
     any determination or ruling that might materially and adversely affect
     the performance by the Seller of its obligations under, or the validity
     or enforceability of, this Agreement or any other Basic Document to which
     the Seller is a party.

          (e) Principal Executive Office. The chief executive office of the
     Seller is One Wachovia Center, 301 South College Street, Charlotte, North
     Carolina 28288.

          (f) No Consents. The Seller is not required to obtain the consent of
     any other party or any consent, license, approval, registration,
     authorization, or declaration of or with any governmental authority,
     bureau or agency in connection with the execution, delivery, performance,
     validity, or enforceability of this Agreement or any other Basic Document
     to which it is a party that has not already been obtained.

          (g) Other Information. No certificate of an officer, statement or
     document furnished in writing or report delivered pursuant to the terms
     hereof by the Seller contains any untrue statement of a material fact or
     omits to state any material fact necessary to make the certificate,
     statement, document or report not misleading.

          (h) Solvency. The sale of the Receivables to the Purchaser is not
     being made with any intent to hinder, delay or defraud any of its
     creditors. The Seller is not insolvent, nor will the Seller be made
     insolvent by the transfer of the Receivables, nor does the Seller
     anticipate any pending insolvency.

                                      13
<PAGE>

          (i) Official Record. This Agreement is and shall remain at all times
     prior to the termination hereof an official record of the Seller as
     referred to in Section 13(e) of the Federal Deposit Insurance Act, as
     amended by 12 U.S.C. Section 1823(e).

          (j) Prospectus. As of the date of the Prospectus and as of the
     Closing Date, the Seller Information does not include an untrue statement
     of a material fact or omit to state a material fact necessary in order to
     make the statements therein, in the light of the circumstances under
     which they were made, not misleading.

     Section 3.03. Representations and Warranties as to the Receivables.

     (a) Eligibility of Receivables. The Seller makes the representations and
warranties set forth in Exhibit A with respect to the Receivables, on which
the Purchaser relies in accepting the Receivables and in transferring the
Receivables to the Issuer under the Sale and Servicing Agreement and on which
the Issuer relies in pledging the same to the Indenture Trustee pursuant to
the Indenture. Except as otherwise provided, such representations and
warranties speak as of the date of execution and delivery of this Agreement,
the Closing Date (in the case of the Initial Receivables) and as of each
Subsequent Transfer Date (in the case of the related Subsequent Receivables),
but shall survive the sale, transfer and assignment of the Receivables to the
Purchaser, the subsequent sale, transfer and assignment of the Receivables by
the Purchaser to the Issuer pursuant to the Sale and Servicing Agreement and
the pledge of the Receivables by the Issuer to the Indenture Trustee pursuant
to the Indenture.

     (b) Notice of Breach. The Purchaser, the Seller, the Issuer, the Owner
Trustee or the Indenture Trustee, as the case may be, shall inform the other
parties promptly, in writing, upon discovery of any breach of the Seller's
representations and warranties pursuant to Section 3.03(a) which materially
and adversely affects the interests of the Noteholders in any Receivable.

     (c) Repurchase of Receivables. In the event of a breach of any
representation or warranty set forth pursuant to Section 3.03(a) which
materially and adversely affects the interests of the Purchaser, the Issuer or
the Noteholders in any Receivable that shall not have been cured by the close
of business on the last day of the Collection Period which includes the 30th
day after the date on which the Seller becomes aware of, or receives written
notice from the Master Servicer, the Purchaser, the Issuer or any Noteholder
of such breach, the Seller shall repurchase such Receivable from the Issuer on
the related Deposit Date. This repurchase obligation shall apply to all
representations and warranties contained in Section 3.03(a) except as
otherwise noted whether or not the Seller or the Purchaser has knowledge of
the breach at the time of the breach or at the time the representations and
warranties were made. In consideration of the repurchase of any such
Receivable the Seller shall remit an amount equal to the Purchase Amount in
respect of such Receivable to the Issuer in the manner set forth in the Sale
and Servicing Agreement. In the event that, as of the date of execution and
delivery of this Agreement, any Liens or claims shall have been filed,
including Liens for work, labor or materials relating to a Financed Vehicle,
that shall be prior to, or equal or coordinate with, the Lien granted by the
related Receivable (whether or not the Seller has knowledge thereof), which
Liens or claims shall not have been satisfied or otherwise released in full as
of the Closing Date, the Seller shall repurchase such Receivable on the terms
and in the manner specified above. Upon any such repurchase, the Purchaser
shall, without further action, be deemed to transfer, assign, set-over and
otherwise

                                      14
<PAGE>

convey to the Seller, without recourse, representation or warranty, all the
right, title and interest of the Purchaser in, to and under such repurchased
Receivable, all other related assets described in Section 2.01(a) or 2.01(b)
and all monies due or to become due with respect thereto and all proceeds
thereof. The Purchaser, the Issuer, the Owner Trustee or the Indenture
Trustee, as applicable, shall execute such documents and instruments of
transfer or assignment and take such other actions as shall reasonably be
requested by the Seller to effect the conveyance of such Receivable pursuant
to this Section. The sole remedy of the Purchaser, the Issuer, the Trustees or
the Noteholders with respect to a breach of the Seller's representations and
warranties pursuant to Section 3.03(a) or with respect to the existence of any
such Liens or claims shall be to require the Seller to repurchase the related
Receivables pursuant to this Section.

                                      15
<PAGE>

                                 ARTICLE FOUR

                                  CONDITIONS

     Section 4.01. Conditions to Obligation of the Purchaser.

     (a) The obligation of the Purchaser to purchase the Initial Receivables
from the Seller on the Closing Date is subject to the satisfaction of the
following conditions:

          (i) Representations and Warranties True. The representations and
     warranties of the Seller contained herein and in the other Basic
     Documents shall be true and correct on the Closing Date with the same
     effect as if made on the Closing Date, and each of the Seller and the
     Master Servicer shall have performed all obligations to be performed by
     it hereunder and under the other Basic Documents on or before the Closing
     Date.

          (ii) Computer Files Marked. The Seller shall, at its own expense, on
     or before the Closing Date, indicate in its computer files that the
     Initial Receivables have been sold to the Purchaser pursuant to this
     Agreement and deliver to the Purchaser an Officer's Certificate
     confirming that its computer files have been marked pursuant to this
     subsection, and shall deliver to the Purchaser the Schedule of Initial
     Receivables, certified by an authorized officer of the Seller to be true,
     correct and complete.

          (iii) Documents to be Delivered. The Purchaser shall have received
     the following, all of which shall be dated as of the Closing Date or such
     other date as specified:

               (A) the Schedule of Initial Receivables;

               (B) the First-Tier Initial Assignment;

               (C) an Officer's Certificate of the Seller and the Master
          Servicer, substantially in the form of Exhibit D;

               (D) opinions of counsel for the Seller and the Master Servicer,
          in the aggregate substantially in the form of Exhibit E, addressed
          to the Purchaser and the Underwriters;

               (E) copies of resolutions of the board of directors of the
          Seller approving the execution, delivery and performance of the
          other Basic Documents to which the Seller is a party, and the
          performance of the transactions contemplated hereunder and
          thereunder, certified by the Secretary or an Assistant Secretary of
          the Seller;

               (F) copies of the articles of association of the Seller,
          together with all amendments, revisions and supplements thereto,
          certified by the Comptroller of the Currency as of a recent date, to
          the effect that the Seller has been duly organized, is duly
          authorized to transact business and is validly existing as a banking
          institution in good standing;

                                      16
<PAGE>

               (G) UCC search reports from the appropriate offices in the
          State of North Carolina as to the Seller;

               (H) a letter from ____________ as to certain financial and
          statistical information in the Prospectus, which letter shall be
          acceptable in form and substance to the Purchaser;

               (I) reliance letters to each opinion of counsel to the Seller
          or the Master Servicer delivered to Standard & Poor's or Moody's in
          connection with the purchase of the Initial Receivables hereunder or
          the issuance of the Securities or the sale of the Notes;

               (J) the Seller shall record and file, at its own expense, on or
          prior to the Closing Date, a financing statement in each
          jurisdiction in which such filing is required by applicable law,
          executed by the Seller, as seller or debtor, and naming the
          Purchaser, as purchaser or secured party, and the Issuer, as
          assignee, naming the Receivables and the related property described
          in Section 2.01 as collateral, meeting the requirements of the laws
          of each such jurisdiction and in such manner as is necessary to
          perfect the sale, transfer, assignment and conveyance of the
          Receivables to the Purchaser; and the Seller shall deliver a
          file-stamped copy, or other evidence satisfactory to the Purchaser
          of such filing, to the Purchaser on the Closing Date; and

               (K) such other documents, certificates and opinions as may be
          requested by the Purchaser or its counsel.

          (iv) Execution of Basic Documents. The Basic Documents shall have
     been executed and delivered by the parties thereto.

          (v) Rating of the Notes. (i) Moody's and Standard & Poor's,
     respectively, shall have assigned ratings of (A) "Prime-1" and "A-1+" to
     the Class A-1 Notes, (B) "Aaa" and "AAA" to the Class A-2 Notes, the
     Class A-3 Notes, the Class A-4 Notes and the Class A-5 Notes and (C)
     "Baa3" and "BBB" to the Class B Notes.

          (vi) Other Transactions. The transactions contemplated by the Basic
     Documents shall be consummated on the Closing Date.

          (vii) No Termination of the Underwriting Agreement. The Purchaser
     may terminate this Agreement at any time at or prior to the Closing Date
     if (i) the Underwriting Agreement has been terminated in accordance with
     its terms, (ii) there has been, since the time of execution of the
     Underwriting Agreement or since the respective dates as of which
     information is given in the Prospectus, any material adverse change in
     the condition, financial or otherwise, or in the earnings, business
     affairs or business prospects of the Purchaser or the Seller, whether or
     not arising in the ordinary course of business, (iii) there has occurred
     any material adverse change in the financial markets in the United
     States, any outbreak of hostilities or escalation thereof or other
     calamity or crisis or any change or development involving a prospective
     change in national or international political, financial or economic
     conditions, in each case the effect of which

                                      17
<PAGE>

     is such as to make it, in the judgment of the Representative,
     impracticable or inadvisable to market the Underwritten Notes or to
     enforce contracts for the sale of the Underwritten Notes, (iv) trading in
     any securities of the Purchaser, the Seller or any of their respective
     Affiliates has been suspended or materially limited by the Commission or
     if trading generally on the American Stock Exchange, the New York Stock
     Exchange or in the Nasdaq National Market has been suspended or
     materially limited, or minimum or maximum prices for trading have been
     fixed, or maximum ranges for prices have been required, by any of said
     exchanges or by such system or by order of the Commission, the National
     Association of Securities Dealers, Inc. or any other governmental
     authority, (v) a material disruption has occurred in commercial banking
     or securities settlement or clearing services in the United States or
     (vi) if a banking moratorium has been declared by Federal, North Carolina
     or New York authorities.

     (b) The obligation of the Purchaser to purchase Subsequent Receivables
from the Seller on the related Subsequent Transfer Date is subject to the
satisfaction of the following conditions:

          (i) Representations and Warranties True. The representations and
     warranties of the Seller contained herein and in the other Basic
     Documents shall be true and correct on such Subsequent Transfer Date with
     the same effect as if made on such Subsequent Transfer Date, and each of
     the Seller and the Master Servicer shall have performed all obligations
     to be performed by it hereunder and under the other Basic Documents on or
     before such Subsequent Transfer Date.

          (ii) Computer Files Marked. The Seller shall, at its own expense, on
     or before such Subsequent Transfer Date, indicate in its computer files
     that the related Receivables have been sold to the Purchaser pursuant to
     this Agreement and deliver to the Purchaser an Officer's Certificate
     confirming that its computer files have been marked pursuant to this
     subsection, and shall deliver to the Purchaser the related Schedule of
     Subsequent Receivables, certified by an authorized officer of the Seller
     to be true, correct and complete.

          (iii) Documents to be Delivered. The Purchaser shall have received
     the following, all of which shall be dated as of such Subsequent Transfer
     Date or such other date as specified:

               (A) the related Schedule of Subsequent Receivables;

               (B) the related First-Tier Subsequent Assignment;

               (C) within ten days of the related Subsequent Transfer Date,
          the Seller shall record and file, at its own expense, a UCC
          financing statement in each jurisdiction in which required by
          applicable law, executed by the Seller, as seller or debtor, and
          naming the Purchaser, as purchaser or secured party, naming such
          Subsequent Receivables and the other property conveyed under Section
          2.01(b) as collateral, meeting the requirements of the laws of each
          such jurisdiction and in such manner as is necessary to perfect the
          sale, transfer, assignment and

                                      18
<PAGE>

          conveyance of such Subsequent Receivables to the Purchaser; and the
          Seller shall deliver a file-stamped copy, or other evidence
          satisfactory to the Purchaser of such filing, to the Purchaser
          within ten days of the related Subsequent Transfer Date;

               (D) an Officer's Certificate of the Seller and Master Servicer,
          substantially in the form of Exhibit D; and

               (E) such other documents, certificates and opinions as may be
          requested by the Purchaser or its counsel, including a letter from
          KPMG LLP as to certain information as to the aggregate
          characteristics of the Initial Receivables and all Subsequent
          Receivables in a report on Form 8-K that the Purchaser shall file
          with the Commission within 15 days after the end of the Pre-Funding
          Period.

          (iv) Satisfaction of Sale and Servicing Agreement Conditions. All of
     the conditions to the transfer of the Subsequent Receivables from the
     Purchaser to the Trust specified in Section 2.01(d) of the Sale and
     Servicing Agreement shall have been satisfied.

     Section 4.02. Conditions to Obligation of the Seller. The obligation of
the Seller to sell the Initial Receivables to the Purchaser on the Closing
Date and any Subsequent Receivables to the Purchaser on the related Subsequent
Transfer Date is subject to the satisfaction of the following conditions:

          (a) Representations and Warranties True. The representations and
     warranties of the Purchaser contained herein and in the other Basic
     Documents shall be true and correct on the Closing Date or the related
     Subsequent Transfer Date, as the case may be, with the same effect as if
     then made, and the Purchaser shall have performed all obligations to be
     performed by it hereunder and under the other Basic Documents on or
     before the Closing Date or the related Subsequent Transfer Date, as the
     case may be.

          (b) Payment of Initial and Subsequent Receivables Purchase Price. In
     consideration of the sale of the Receivables from the Seller to the
     Purchaser as provided in Section 2.01, (i) on the Closing Date the
     Purchaser shall have paid to the Seller an aggregate amount equal to the
     Initial Receivables Purchase Price, and (ii) on each Subsequent Transfer
     Date the Purchaser shall have paid to the Seller an aggregate amount
     equal to the related Subsequent Receivables Purchase Price.

                                      19
<PAGE>

                                 ARTICLE FIVE

                            COVENANTS OF THE SELLER

     Section 5.01. Protection of Right, Title and Interest in, to and Under
the Receivables.

     (a) The Seller, at its expense, shall cause this Agreement and all
financing statements and continuation statements and any other necessary
documents covering the Purchaser's right, title and interest in, to and under
the Receivables and other property conveyed by the Seller to the Purchaser
hereunder to be promptly authorized, recorded, registered and filed, and at
all times to be kept recorded, registered and filed, all in such manner and in
such places as may be required by law fully to preserve and protect the right,
title and interest of the Purchaser hereunder to the Receivables and such
other property. The Seller shall deliver to the Purchaser file-stamped copies
of, or filing receipts for, any document recorded, registered or filed as
provided above, as soon as available following such recording, registration or
filing. The Purchaser shall cooperate fully with the Seller in connection with
the obligations set forth above and will execute any and all documents
reasonably required to fulfill the intent of this subsection.

     (b) Within 30 days after the Seller makes any change in its name,
identity or organizational structure which would make any financing statement
or continuation statement filed in accordance with Section 4.01(a)(iii)(J) or
4.01(b)(iii)(C) seriously misleading within the meaning of the UCC as in
effect in the applicable State, the Seller shall give the Purchaser notice of
any such change and within 30 days after such change shall authorize, execute
and file such financing statements or amendments as may be necessary to
continue the perfection of the Purchaser's security interest in the
Receivables and the proceeds thereof.

     (c) The Seller shall give the Purchaser written notice within 60 days of
any relocation of any office from which the Seller keeps records concerning
the Receivables or of its principal executive office or its jurisdiction of
organization and whether, as a result of such relocation, the applicable
provisions of the UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement and within 60 days after such relocation shall authorize, execute
and file such financing statements or amendments as may be necessary to
continue the perfection of the interest of the Purchaser in the Receivables
and the proceeds thereof. The Seller shall at all times maintain its
jurisdiction of organization, its principal place of business, its chief
executive office and the location of the office where the Receivables Files
and any accounts and records relating to the Receivables are kept within the
United States.

     (d) The Seller shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know
at any time the status of such Receivable, including payments and recoveries
made and payments owing (and the nature of each) and (ii) reconciliation
between payments or recoveries on (or with respect to) each Receivable.

     (e) The Seller shall maintain its computer systems so that, from and
after the time of the transfer of the Receivables to the Purchaser pursuant to
this Agreement, the Seller's master computer records (including any back-up
archives) that refer to a Receivable shall indicate

                                      20
<PAGE>

clearly and unambiguously that such Receivable is owned by the Purchaser (or,
upon transfer of the Receivables to the Issuer, by the Issuer). Indication of
the Purchaser's ownership of a Receivable shall be deleted from or modified on
the Seller's computer systems when, and only when, such Receivable shall have
been paid in full or repurchased by the Seller.

     (f) If at any time the Seller shall propose to sell, grant a security
interest in or otherwise transfer any interest in any motor vehicle retail
installment sale contract to any prospective purchaser, lender or other
transferee, the Seller shall give to such prospective purchaser, lender or
other transferee computer tapes, compact disks, records or print-outs
(including any restored from back-up archives) that, if they shall refer in
any manner whatsoever to any Receivable, shall indicate clearly and
unambiguously that such Receivable has been sold and is owned by the Purchaser
(or, upon transfer of the Receivables to the Issuer, the Issuer), unless such
Receivable has been paid in full or repurchased by the Seller.

     (g) The Seller shall permit the Purchaser and its agents at any time
during normal business hours to inspect, audit and make copies of and
abstracts from the Seller's records regarding any Receivable, upon reasonable
prior notice.

     (h) If the Seller has repurchased one or more Receivables from the
Purchaser or the Issuer pursuant to Section 3.03(c), the Seller shall, upon
request, furnish to the Purchaser, within ten Business Days, a list of all
Receivables (by Receivable number and name of Obligor) then owned by the
Purchaser or the Issuer, together with a reconciliation of such list to the
Schedule of Receivables.

     Section 5.02. Security Interests. Except for the conveyances hereunder,
the Seller covenants that it will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Lien on
any Receivable, whether now existing or hereafter created, or any interest
therein; the Seller will immediately notify the Purchaser of the existence of
any Lien on any Receivable and, in the event that the interests of the
Noteholders in such Receivable are materially and adversely affected, such
Receivable shall be repurchased from the Purchaser by the Seller in the manner
and with the effect specified in Section 3.03(c), and the Seller shall defend
the right, title and interest of the Purchaser and its assigns in, to and
under the Receivables, whether now existing or hereafter created, against all
claims of third parties claiming through or under the Seller; provided,
however, that nothing in this subsection shall prevent or be deemed to
prohibit the Seller from suffering to exist upon a Receivable any Lien for
municipal or other local taxes if such taxes shall not at the time be due and
payable or if the Seller shall currently be contesting the validity of such
taxes in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

     Section 5.03. Delivery of Payments. The Seller covenants and agrees to
deliver in kind upon receipt to the Master Servicer under the Sale and
Servicing Agreement all payments received by or on behalf of the Seller in
respect of the Receivables as soon as practicable after receipt thereof by the
Seller.

     Section 5.04. No Impairment. The Seller covenants that it shall take no
action, nor omit to take any action, which would impair the rights of the
Purchaser, the Issuer or the Noteholders

                                      21
<PAGE>

in any Receivable, nor shall it, except as otherwise provided in this
Agreement or the Sale and Servicing Agreement, reschedule, revise or defer
payments due on any Receivable.

     Section 5.05. Costs and Expenses. The Seller shall pay all reasonable
costs and expenses incurred in connection with the perfection of the
Purchaser's right, title and interest in, to and under the Receivables.

     Section 5.06. Sale. The Seller agrees to treat the conveyances hereunder
for all purposes (including financial accounting purposes) as an absolute
transfer on all relevant books, records, financial statements and related
documents.

     Section 5.07. Hold Harmless. The Seller shall protect, defend, indemnify
and hold the Purchaser and the Issuer and their respective assigns and their
attorneys, accountants, employees, officers and directors harmless from and
against all losses, costs, liabilities, claims, damages and expenses of every
kind and character, as incurred, resulting from or relating to or arising out
of (i) the inaccuracy, nonfulfillment or breach of any representation,
warranty, covenant or agreement made by the Seller in this Agreement, (ii) any
legal action, including any counterclaim, that has either been settled by the
litigants (which settlement, if the Seller is not a party thereto shall be
with the consent of the Seller) or has proceeded to judgment by a court of
competent jurisdiction, in either case to the extent it is based upon alleged
facts that, if true, would constitute a breach of any representation,
warranty, covenant or agreement made by the Seller in this Agreement, (iii)
any actions or omissions of the Seller or any employee or agent of the Seller
occurring prior to the Closing Date with respect to any Initial Receivable or
the related Financed Vehicle or occurring prior to the related Subsequent
Transfer Date with respect to any Subsequent Receivables or the related
Financed Vehicle or (iv) any failure of a Receivable to be originated in
compliance with all requirements of law. These indemnity obligations shall be
in addition to any obligation that the Seller may otherwise have.

                                      22
<PAGE>

                                  ARTICLE SIX

                                INDEMNIFICATION

     Section 6.01. Indemnification.

     (a) The Seller agrees to indemnify and hold harmless the Purchaser, each
Underwriter and each person, if any, who controls the Purchaser or any
Underwriter within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act as follows:

          (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact contained in the Seller Information
     or any similar information contained in each Collateral Term Sheet (if
     any), each Structural Term Sheet (if any), all Computational Materials
     (if any), the Preliminary Prospectus or the Prospectus (or any amendment
     or supplement thereto), or the omission or alleged omission therefrom of
     a material fact necessary in order to make the statements therein, in the
     light of the circumstances under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, to the extent of the aggregate amount paid in
     settlement of any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or of any claim
     whatsoever, based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission; provided that (subject to Section
     6.01(c)) any such settlement is effected with the written consent of the
     Seller; and

          (iii) against any and all expense whatsoever, as incurred (including
     the fees and disbursements of counsel chosen by the Purchaser or the
     Underwriters), reasonably incurred in investigating, preparing or
     defending against any litigation, or any investigation or proceeding by
     any governmental agency or body, commenced or threatened, or any claim
     whatsoever, based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission, to the extent that any such expense
     is not paid under clause (i) or (ii) above.

     (b) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify
an indemnifying party shall not relieve such indemnifying party from any
liability hereunder to the extent it is not materially prejudiced as a result
thereof and in any event shall not relieve it from any liability which it may
have otherwise than on account of this indemnity agreement. Counsel to the
indemnified parties shall be selected by the Purchaser or the Representative,
subject to the consent of the indemnifying party (which consent shall not be
unreasonably withheld). An indemnifying party may participate at its own
expense in the defense of any such action; provided, however, that counsel to
the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party. In no event shall the
indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar
or

                                      23
<PAGE>

related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from
all liability arising out of such litigation, investigation, proceeding or
claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

     (c) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6.01(a)(ii) effected without
its written consent if such (i) settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii)
indemnifying party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into and (iii)
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

     (d) If recovery is not available under the provisions of this Section for
any reason other than as specified herein, or is insufficient to hold harmless
any indemnified party in respect of any losses, liabilities, claims, damages
and expenses herein, the indemnified parties shall be entitled to contribution
in respect of any losses, liabilities, claims, damages and expenses herein,
except to the extent that contribution is not permitted under Section 11(f) of
the Securities Act. In determining the amount of contribution to which the
indemnified parties are entitled, there shall be considered the relative
benefits received by each party, the parties' relative fault, which
incorporates, among other things, their respective knowledge, access to
information concerning the matter with respect to which the claim was asserted
and opportunity to correct and prevent any statement or omission, and any
other equitable considerations appropriate under the circumstances. The
parties hereto agree that it would not be equitable if the amount of such
contribution were determined by pro rata or per capita allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to above in this Section. The aggregate amount of
losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever, based upon any such untrue or alleged
untrue statement or omission or alleged omission.

     Notwithstanding the other provisions of this Section, the relative
benefits received by the Underwriters shall be deemed to be in the same
proportion as the total underwriting discounts and commissions received by the
Underwriters, bear to the aggregate initial public offering price of the
Underwritten Notes.

                                      24
<PAGE>

     No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

                                      25
<PAGE>

                                 ARTICLE SEVEN

                           MISCELLANEOUS PROVISIONS

     Section 7.01. Amendment.

     (a) This Agreement may be amended from time to time by a written
amendment duly executed and delivered by the Purchaser and the Seller, without
the consent of any Noteholder, to cure any ambiguity, to correct or supplement
any provision herein which may be inconsistent with any other provision herein
or to add any other provision with respect to matters or questions arising
under this Agreement which shall not be inconsistent with the provisions of
this Agreement or the Sale and Servicing Agreement; provided, however, that
any such amendment shall not, as evidenced by an Opinion of Counsel to the
Seller delivered to the Indenture Trustee, adversely affect in any material
respect the interests of any Noteholder.

     (b) This Agreement may also be amended from time to time for any other
purpose by a written amendment duly executed and delivered by the Seller and
by the Purchaser; provided, however, that any such amendment that materially
adversely affects the interests of the Noteholders under the Indenture, the
Sale and Servicing Agreement or the Trust Agreement must be consented to by
the Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class of Notes. Promptly after the execution of any such
amendment, the Seller shall furnish written notification of the substance of
such amendment to the Owner Trustee, the Indenture Trustee and the Rating
Agencies.

     Section 7.02. Termination. The respective obligations and
responsibilities of the Seller and the Purchaser created hereby shall
terminate, except for the indemnity obligations of the Seller as provided
herein, upon the termination of the Issuer as provided in the Trust Agreement.

     SECTION 7.03. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 7.04. Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or sent by telecopier, overnight courier or mailed by registered
mail, return receipt requested, in the case of the (i) Purchaser, to Pooled
Auto Securities Shelf LLC, 301 South College Street, Suite E, Charlotte, North
Carolina, 28288-5578, Attention: Treasury ABS Department and (ii) Seller, to
Wachovia Bank, National Association, 301 South College Street, 10th Floor,
Charlotte, North Carolina 28244-0610, Attention: Treasury Department; or, as
to either of such Persons, at such other address as shall be designated by
such Person in a written notice to the other Persons.

     Section 7.05. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the

                                      26
<PAGE>

remaining covenants, agreements, provisions and terms of this Agreement and
shall in no way affect the validity or enforceability of the other covenants,
agreements, provisions and terms of this Agreement.

     Section 7.06. Further Assurances. The Seller and the Purchaser agree to
do and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the other party hereto
or by the Issuer or the Indenture Trustee more fully to effect the purposes of
this Agreement, including the execution of any financing statements,
amendments, continuation statements or releases relating to the Receivables
for filing under the provisions of the UCC or other law of any applicable
jurisdiction.

     Section 7.07. No Waiver; Cumulative Remedies. No failure to exercise and
no delay in exercising, on the part of the Purchaser, the Issuer, the
Indenture Trustee, the Noteholders or the Seller, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

     Section 7.08. Counterparts. This Agreement may be executed in two or more
counterparts (and by different parties on separate counterparts), each of
which shall be an original, but all of which together shall constitute one and
the same instrument.

     Section 7.09. Third-Party Beneficiaries. This Agreement will inure to the
benefit of and be binding upon the parties hereto, the Issuer, the Indenture
Trustee, the Owner Trustee, the Noteholders and the Underwriters. Except as
otherwise provided in this Agreement, no other Person will have any right or
obligation hereunder.

     Section 7.10. Headings. The Article and Section headings and the Table of
Contents herein are for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision hereof.

     Section 7.11. Representations, Warranties and Agreements to Survive. The
respective agreements, representations, warranties and other statements by the
Seller and by the Purchaser set forth in or made pursuant to this Agreement
shall remain in full force and effect and will survive the closing hereunder
of the transfers and assignments by the Seller to the Purchaser and by the
Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the
Trustees and the Noteholders.

     Section 7.12. No Proceedings. So long as this Agreement is in effect, and
for one year plus one day following its termination, the Seller agrees that it
will not file any involuntary petition or otherwise institute any bankruptcy,
reorganization arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or State bankruptcy law or similar law against
the Purchaser or the Issuer.

                                      27
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers, thereunto duly authorized, as of
the day and year first above written.

                                    WACHOVIA BANK, NATIONAL ASSOCIATION,
                                    as Seller

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

                                    POOLED AUTO SECURITIES SHELF LLC,
                                    as Purchaser

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

<PAGE>

                                                                    SCHEDULE A

                            SCHEDULE OF RECEIVABLES

                [Original on file at Master Servicer's office]

                                     SA-1
<PAGE>

                                                                    SCHEDULE B

                         LOCATION OF RECEIVABLE FILES

                                     SB-1
<PAGE>

                                                                     EXHIBIT A

             REPRESENTATIONS AND WARRANTIES AS TO THE RECEIVABLES

       [Exhibit A to Sale and Servicing Agreement will be copied to here
                     once that Exhibit has been finalized]

                                     A-1
<PAGE>

                                                                     EXHIBIT B

                     FORM OF FIRST-TIER INITIAL ASSIGNMENT

     For value received, in accordance with the receivables purchase
agreement, dated as of __________ __, 200_ (the "Receivables Purchase
Agreement"), between Wachovia Bank, National Association (the "Seller") and
Pooled Auto Securities Shelf LLC (the "Purchaser"), the Seller does hereby
irrevocably sell, transfer, assign, set over and otherwise convey unto the
Purchaser, without recourse (subject to the obligations of the Seller herein
and in the Receivables Purchase Agreement), all right, title and interest of
the Seller in, to and under, whether now owned or existing or hereafter
acquired or arising, in, to and under the following

          (i) the Initial Receivables listed on Schedule A hereto (the
     "Initial Receivables") and all amounts due and received on or in respect
     of the Initial Receivables (including proceeds of the repurchase of
     Initial Receivables by the Seller pursuant to the Receivables Purchase
     Agreement) after the Initial Cutoff Date;

          (ii) the security interests in the Financed Vehicles granted by the
     Obligors pursuant to the Initial Receivables and any other interest of
     the Seller in such Financed Vehicles;

          (iii) all proceeds from claims on or refunds of premiums of any
     physical damage or theft insurance policies and extended warranties
     covering the Financed Vehicles and any proceeds or refunds of premiums of
     any credit life or credit disability insurance policies relating to the
     Initial Receivables, the related Financed Vehicles or the related
     Obligors;

          (iv) the Receivable Files that relate to the Initial Receivables;

          (v) any proceeds of Dealer Recourse;

          (vi) the right to realize upon any property (including the right to
     receive future Net Liquidation Proceeds and Recoveries) that shall have
     secured an Initial Receivable and have been repossessed by or on behalf
     of the Seller; and

          (vii) all present and future claims, demands, causes of action and
     choses in action in respect of any or all of the foregoing, and all
     payments on or under and all proceeds of every kind and nature whatsoever
     in respect of any or all of the foregoing, including all proceeds of the
     conversion thereof, voluntary or involuntary, into cash or other liquid
     property, all accounts, accounts receivable, general intangibles, chattel
     paper, documents, money, investment property, deposit accounts, letters
     of credit, letter of credit rights, insurance proceeds, condemnation
     awards, notes, drafts, acceptances, rights to payment of any and every
     kind and other forms of obligations and receivables, instruments and
     other property which at any time constitute all or part of or are
     included in the proceeds of any of the foregoing.

                                     B-1
<PAGE>

     In the event that the foregoing sale, transfer, assignment and conveyance
is deemed to be a pledge, the Seller hereby grants to the Purchaser a first
priority security interest in all of the Seller's right to and interest in the
Initial Receivables and other property described in clauses (i) through (viii)
above to secure a loan deemed to have been made by the Purchaser to the Seller
in an amount equal to the sum of the initial principal amount of the Notes
plus accrued interest thereon.

     THIS FIRST-TIER INITIAL ASSIGNMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS OF THE SELLER UNDER THIS
FIRST-TIER INITIAL ASSIGNMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

     This First-Tier Initial Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Receivables Purchase Agreement and is to be governed by the
Receivables Purchase Agreement.

     Capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Receivables Purchase Agreement.

     IN WITNESS WHEREOF, the undersigned has caused this First-Tier Initial
Assignment to be duly executed as of _________ __, 200_.

                                    WACHOVIA BANK, NATIONAL ASSOCIATION

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

                                     B-2
<PAGE>

                                                                     EXHIBIT C

                   FORM OF FIRST-TIER SUBSEQUENT ASSIGNMENT

     For value received, in accordance with the receivables purchase
agreement, dated as of _________ __, 200_ (the "Receivables Purchase
Agreement"), between Wachovia Bank, National Association (the "Seller") and
Pooled Auto Securities Shelf LLC (the "Purchaser"), the Seller does hereby
irrevocably sell, transfer, assign, set over and otherwise convey unto the
Purchaser, without recourse (subject to the obligations of the Seller herein
and in the Receivables Purchase Agreement), all right, title and interest of
the Seller in, to and under, whether now owned or existing or hereafter
acquired or arising, in, to and under the following

          (i) the Subsequent Receivables listed on Schedule A hereto (the
     "Subsequent Receivables") and all amounts due and received on or in
     respect of the Subsequent Receivables (including proceeds of the
     repurchase of Subsequent Receivables by the Seller pursuant to the
     Receivables Purchase Agreement) after the Subsequent Cutoff Date;

          (ii) the security interests in the Financed Vehicles granted by the
     Obligors pursuant to the Subsequent Receivables;

          (iii) all proceeds from claims on or refunds of premiums of any
     physical damage or theft insurance policies and extended warranties
     covering the Financed Vehicles and any proceeds or refunds of premiums of
     any credit life or credit disability insurance policies relating to the
     Subsequent Receivables, the related Financed Vehicles or the related
     Obligors;

          (iv) the Receivable Files that relate to the Subsequent Receivables;

          (v) any proceeds of Dealer Recourse;

          (vi) the right to realize upon any property (including the right to
     receive future Net Liquidation Proceeds and Recoveries) that shall have
     secured an Initial Receivable and have been repossessed by or on behalf
     of the Seller; and

          (vii) all present and future claims, demands, causes of action and
     choses in action in respect of any or all of the foregoing, and all
     payments on or under and all proceeds of every kind and nature whatsoever
     in respect of any or all of the foregoing, including all proceeds of the
     conversion thereof, voluntary or involuntary, into cash or other liquid
     property, all accounts, accounts receivable, general intangibles, chattel
     paper, documents, money, investment property, deposit accounts, letters
     of credit, letter of credit rights, insurance proceeds, condemnation
     awards, notes, drafts, acceptances, rights to payment of any and every
     kind and other forms of obligations and receivables, instruments and
     other property which at any time constitute all or part of or are
     included in the proceeds of any of the foregoing.

                                     C-1
<PAGE>

     The Subsequent Cutoff Date with respect to each Subsequent Receivable is
____________, 200_.

     The Seller hereby represents that as of the Subsequent Cutoff Date, the
aggregate Principal Balance of the Subsequent Receivables was $_________.

     In the event that the foregoing sale, transfer, assignment and conveyance
is deemed to be a pledge, the Seller hereby grants to the Subsequent Purchaser
a first priority security interest in all of the Seller's right to and
interest in the Subsequent Receivables and other property described in clauses
(i) through (viii) above to secure a loan deemed to have been made by the
Purchaser to the Seller in an amount equal to the sum of the initial principal
amount of the Notes plus accrued interest thereon.

         THIS FIRST-TIER SUBSEQUENT ASSIGNMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS OF THE
SELLER UNDER THIS FIRST-TIER SUBSEQUENT ASSIGNMENT SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

     This First-Tier Subsequent Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Receivables Purchase Agreement and is to be governed by the
Receivables Purchase Agreement.

     Capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Receivables Purchase Agreement.

     IN WITNESS WHEREOF, the undersigned has caused this First-Tier Subsequent
Assignment to be duly executed as of ________ __, 200_.

                                    WACHOVIA BANK, NATIONAL ASSOCIATION

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

                                     C-2
<PAGE>

                                                                     EXHIBIT D

                      WACHOVIA BANK, NATIONAL ASSOCIATION
                       OFFICER'S CERTIFICATE PURSUANT TO
                    SECTION 4.01(a)(iii)(C) and (b)(iii)(D)
                     OF THE RECEIVABLES PURCHASE AGREEMENT

     I, ______________, do hereby certify that I am a duly elected, qualified
and acting Vice President of Wachovia Bank, National Association, a national
banking association (the "Bank"), and that, as such, I am authorized to
execute this certificate on behalf of the Bank. Pursuant to Section
4.01(a)(iii)(B) of the receivables purchase agreement, dated as of _________
__, 200_ (the "Receivables Purchase Agreement"), between the Bank and Pooled
Auto Securities Shelf LLC ("PASS"), I hereby further certify on behalf of the
Bank as follows:

     1. Each of the representations and warranties of the Bank contained or
incorporated by reference in Section 3.02 of the Receivables Purchase
Agreement and Section 6.01 of the Sale and Servicing Agreement is true and
correct on and as of the date hereof.

     2. There is no litigation pending, or to my knowledge, threatened, which,
if determined adversely to the Bank, (i) would adversely affect the
enforceability of a material portion of the Receivables, the sale of the
Receivables, the execution, delivery or enforceability of the Basic Documents
to which the Bank is a party or the ability of the Bank to service and
administer the Receivables in accordance with the terms of the Sale and
Servicing Agreement, (ii) would breach the representations and warranties of
the Bank contained in or incorporated by reference in the Receivables Purchase
Agreement or the Sale and Servicing Agreement or (iii) is likely to have a
material adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Bank.

     3. The Bank has complied with all agreements to which it is a party in
connection with the transactions contemplated by the Basic Documents to which
the Bank is a party, and has satisfied all the conditions on its part to be
performed or satisfied prior to the Closing Date.

     4. No event of default in the performance of any of the Bank's covenants
or agreements under the Basic Documents to which the Bank is a party has
occurred and is continuing, nor has an event occurred which with the passage
of time or notice or both would become such an event of default.

     Capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Receivables Purchase Agreement.

                                     D-1
<PAGE>

     IN WITNESS WHEREOF, I have signed by name as of this ____ day of ________
200_.

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

                                     D-2
<PAGE>

                                                                     EXHIBIT E

                     OPINION OF COUNSEL FOR WACHOVIA BANK

                                     E-1Exhibit 4.1

                STRATSSM CERTIFICATES SERIES SUPPLEMENT 2006-1

                                    between

                   SYNTHETIC FIXED-INCOME SECURITIES, INC.,
                                  as Trustor

                                      and

                             THE BANK OF NEW YORK,
                    as Trustee and Securities Intermediary

         STRATS(SM) TRUST FOR PROCTER & GAMBLE SECURITIES, SERIES 2006-1

<PAGE>

                               TABLE OF CONTENTS

                                                                           Page

PRELIMINARY STATEMENT.........................................................1

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

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

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

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

Section 5.   Certificate Stated Amount and Denominations......................6

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

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

Section 8.   Swap Payments; Collateral Account................................7

Section 9.   Certain Provisions of Base Trust Agreement Not Applicable........7

Section 10.  Distributions....................................................7

Section 11.  Termination of Trust............................................10

Section 12.  Limitation of Powers and Duties.................................10

Section 13.  Compensation of Trustee.........................................11

Section 14.  Modification or Amendment of the Base Trust Agreement,
             the Series Supplement or the Swap Agreement.....................12

Section 15.  Assignment of Rights under the Swap Agreement...................13

Section 16.  Accounting......................................................13

Section 17.  No Investment of Amounts Received on Underlying Securities......13

Section 18.  No Event of Default.............................................13

Section 19.  Notices.........................................................13

Section 20.  Access to Certain Documentation.................................14

Section 21.  Advances........................................................14

                                      i

 <PAGE>

Section 22.  Ratification of Agreement.......................................14

Section 23.  Counterparts....................................................14

Section 24.  Governing Law...................................................14

Section 25.  Certificate of Compliance.......................................15

Section 26.  Certain Filing to be Made by the Trustee........................15

Section 27.  Establishment of Accounts.......................................15

Section 28.  Statement of Intent.............................................15

Section 29.  Filing of Partnership Returns...................................16

Section 30.  "Financial Assets" Election.....................................16

Section 31.  Trustee's Entitlement Orders....................................16

Section 32.  Conflict with Other Agreements..................................16

Section 33.  Additional Trustee and Securities Intermediary Representations..16

Section 34.  Additional Trustor Representations..............................17

Section 35.  Certification Requirements......................................17

Section 36.  Additional Rights of the Swap Counterparty......................17

Section 37.  Modification of Certain Provisions of Base Trust Agreement......17

Section 38.  Evidence of Integration for Tax Purposes........................18

Section 39.  Optional Exchange...............................................18

Exhibit A -- Identification of the Underlying Securities as of Closing Date
Exhibit B -- Terms of the Certificates as of Closing Date
Exhibit C -- Form of Certificates
Exhibit D -- Form of Swap Agreement
Exhibit E -- Evidence of Integration for Tax Purposes

                                      ii
<PAGE>

         STRATSSM SERIES SUPPLEMENT 2006-1, dated as of February 28, 2006
         (this "Series Supplement"), between SYNTHETIC FIXED-INCOME
         SECURITIES, INC., a Delaware corporation, as Trustor (the "Trustor"),
         and THE BANK OF NEW YORK, a New York banking corporation as trustee
         (the "Trustee") and as securities intermediary (the "Securities
         Intermediary").

                             PRELIMINARY STATEMENT

          Pursuant to the Base Trust Agreement, dated as of February 28, 2006
(the "Base Trust Agreement" and, as supplemented pursuant to the Series
Supplement, the "Agreement"), between the Trustor and the Trustee, such
parties may at any time and from time to time enter into a series supplement
supplemental to the Base Trust Agreement for the purpose of creating a trust.
Section 5.13 of the Base Trust Agreement provides that the Trustor may at any
time and from time to time direct the Trustee to authenticate and deliver, on
behalf of any such trust, a new Series of trust certificates. Each trust
certificate of such new Series of trust certificates will represent a
fractional undivided beneficial interest in such trust. Certain terms and
conditions applicable to each such Series are to be set forth in the related
series supplement to the Base Trust Agreement.

          Pursuant to this Series Supplement, the Trustor and the Trustee
shall create and establish a new trust to be known as STRATSSM Trust For
Procter & Gamble Securities, Series 2006-1, and a new Series of trust
certificates to be issued thereby, which certificates shall be known as the
STRATSSM Certificates, Series 2006-1, and the Trustor and the Trustee shall
herein specify certain terms and conditions in respect thereof. The Trust
shall also enter into a swap agreement (the "Swap Agreement") pursuant to
which the Trust will exchange interest payments due on the Underlying
Securities for payments from the Swap Counterparty which will be passed
through to the Certificateholders.

          The STRATSSM Certificates, Series 2006-1 shall be floating rate
Certificates (the "Certificates") issued in the form thereof set forth in
Exhibit C.

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

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

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

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

          "Accounts": Collectively the Certificate Account and the Collateral
Account.

          "Affected Party": Shall have the meaning provided under the Swap
Agreement.

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

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

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

          "Calculation Agent": Wachovia Bank, National Association, in its
capacity as calculation agent under the Swap Agreement.

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

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

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

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

          "Closing Date": February 28, 2006.

          "Collateral Account": With respect to this Series, the Eligible
Account, which shall be a securities account established and maintained by the
Securities Intermediary in the Trustee's name, to which any Posted Collateral
and all proceeds thereof shall be credited in accordance with the Swap
Agreement.

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

                                      2
<PAGE>

          "Corporate Trust Office": The Bank of New York, 101 Barclay Street,
New York, NY 10286 or such other corporate trust office as the Trustee shall
designate in writing to the Trustor and the Certificateholders.

          "Defaulting Party": Shall have the meaning provided under the Swap
Agreement.

          "Depositary": The Depositary Trust Company.

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

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

          "Interest Collections": For any Distribution Date, the sum of (i)
all amounts received during the Collection Period ending on such Distribution
Date from the Swap Counterparty pursuant to the Swap Agreement and (ii) any
amounts representing interest on the Underlying Securities that are actually
received by the Trust pursuant to the Underlying Securities on such
Distribution Date and not required to be paid to the Swap Counterparty
pursuant to the Swap Agreement.

          "Maturity Date": August 15, 2034.

          "Optional Exchange": Any exchange of Certificates held by the
Depositor for Underlying Securities under Section 39 of this Series
Supplement.

          "Payment Default": A default by the Underlying Securities Issuer in
the payment of any amount due on the Underlying Securities after the same
becomes due and payable on any Underlying Securities Payment Date (and the
expiration of any applicable grace period on the Underlying Securities).

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

          "Posted Collateral": Shall have the meaning provided under the Swap
Agreement.

          "Rating Agency": S&P and any successor thereto. References to "the
Rating Agency" in the Agreement shall be deemed to be such credit rating
agency.

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

          "Regulation AB": Regulations promulgated by the Securities and
Exchange Commission and codified under 17 C.F.R. Subpart 229.1100.

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

                                      3
<PAGE>

          "Scheduled Distribution Date": (i) For so long as the Swap Agreement
shall not have been terminated the 15th day of each calendar month, or, if any
such day is not a Business Day, then the immediately following Business Day,
commencing March 15, 2006, until the date on which the Certificates have been
retired; provided, however, that payment on each Scheduled Distribution Date
shall be subject to prior payment of interest or principal, as applicable, on
the Underlying Securities or

          (ii) upon the occurrence of a Swap Agreement Termination Event that
is not also a Trust Termination Event, Scheduled Distribution Dates will
thereafter occur semi-annually on each February 15 and August 15, or the
immediately following Business Day, until the Certificates have been retired.

          "SEC Reporting Failure": Any circumstance in which the Underlying
Securities Issuer either (x) states in writing that it intends permanently to
cease filing periodic reports required under the Securities Exchange Act of
1934 or (y) fails to file its required periodic reports for any quarterly
reporting period, and (2) the Trustor determines after consultation with the
Securities and Exchange Commission, that under applicable securities laws,
rules or regulations the Trust must be liquidated or the Underlying Securities
distributed.

          "Specified Currency": United States Dollars.

          "Swap Agreement": The ISDA Master Agreement dated as of the Closing
Date, between the Trust and the Swap Counterparty (including the Schedule
thereto) as supplemented by Confirmation Number 1357973, 1357967 in the form
attached hereto as Exhibit D.

          "Swap Agreement Termination Event": The occurrence of any "Event of
Default" or "Termination Event" under the Swap Agreement.

          "Swap Counterparty": Wachovia Bank, N.A., or any permitted successor
or assign thereto.

          "Trust": STRATSSM Trust For Procter & Gamble Securities, Series
2006-1.

          "Trust Termination Event": (a) the payment in full at maturity or
upon early redemption of the Certificates, (b) the final distribution of the
proceeds received upon a recovery on the Underlying Securities (after
deducting the costs incurred in connection therewith) after an Acceleration or
other default with respect to the Underlying Securities (and the expiration of
any applicable grace period on the Underlying Securities), (c) the
distribution (or liquidation and distribution) of the Underlying Securities in
accordance with Section 10(i) hereof in the event of an SEC Reporting Failure,
(d) any Swap Agreement Termination Event pursuant to which the Trust is the
Defaulting Party or an Affected Party and amounts are owed by the Trust under
the Swap Agreement that are in excess of the redemption proceeds or other
current distributions on the Underlying Securities or (e) any Optional
Exchange of all Certificates then outstanding.

          "Underlying Securities": As of the Closing Date, $33,000,000 of
5.80% Notes due 2034 issued by the Underlying Securities Issuer, sold to the
Trustee by Wachovia Securities and identified on Exhibit A hereto.

                                      4
<PAGE>

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

          "Underlying Securities Issuer": The Procter & Gamble Company.

          "Underlying Securities Payment Date": The 15th day of each February
and August ending on August 15, 2034; provided, however, that if any
Underlying Securities Payment Date would otherwise fall on a day that is not a
Business Day, such Underlying Securities Payment Date will be the following
Business Day.

          "Underlying Securities Redemption Distribution Date": Any date on
which the payment of the principal of the Underlying Securities, either in
whole or in part, is paid to the Trustee.

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

          "Unpaid Amounts": As to the Trust or the Swap Counterparty,
respectively, an amount equal to the regular scheduled payments that such
party is otherwise required to make under the Swap Agreement, through, but
excluding, the date on which the Swap Agreement is terminated.

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

          "Wachovia Securities": Wachovia Capital Markets, LLC.

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

          (b) The Trustor, acting as Depositor, does hereby sell, assign,
convey and set-over to the Trustee, on behalf and for the benefit of the
Trust, the Underlying Securities at a purchase price of $34,635,027 in cash.
The Trustee shall pay the full purchase price for the Underlying Securities by
delivering to Wachovia Securities, for the account of the Depositor, and as
the assignee of Depositor with respect to such amounts, (i) $34,565,910 on the
Closing Date and (ii) $69,116.67 on August 15, 2006, which represents the
accrued and unpaid interest of the Underlying Securities on the Closing Date.
The amounts to be paid to Wachovia Securities set forth in clause (i) above,
shall be paid from the proceeds of the issuance of the Certificates to be
received by the Trustee on the Closing Date. The amounts to be paid to
Wachovia Securities set forth in clause (ii) above, shall be paid from the
interest payment on the Underlying Securities to be received by the Trustee on
August 15, 2006. In the event that such interest payment on the Underlying
Securities is not received by the Trustee on such date or is otherwise
insufficient to pay such amount of accrued and unpaid interest to Wachovia
Securities, Wachovia

                                      5
<PAGE>

Securities, for the account of the Depositor, and as assignee of
Depositor with respect to such amounts, shall have a claim for the unpaid
portion of such amount and shall share pari passu with Certificateholders to
the extent of such claim in the proceeds from the sale or recovery of the
Underlying Securities. The Trustor hereby instructs the Trustee on behalf of
and for the benefit of the Trust to enter into and execute the Swap Agreement
and perform the obligations thereunder on behalf of the Trust, including, but
not limited to, receiving and returning any collateral posted by the Swap
Counterparty in accordance with the Swap Agreement.

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

          Section 3. Designation. There is hereby created a Series of trust
certificates to be issued pursuant to the Base Trust Agreement and this Series
Supplement to be known as the "STRATSSM Certificates, Series 2006-1". The
Certificates shall have the terms provided for in this Series Supplement. The
Certificates shall be issued in the amount set forth in Section 5 and with the
additional terms set forth in Exhibit B to this Series Supplement. The
Certificates shall be issued in substantially the form set forth in Exhibit C
to this Series Supplement with such necessary or appropriate changes as shall
be approved by the Trustor and the Trustee, such approval to be manifested by
the execution and authentication thereof by the Trustee. The Certificates
shall evidence undivided ownership interests in the assets of the Trust,
subject to the liabilities of the Trust and shall be payable solely from
payments or property received by the Trustee on or in respect of the
Underlying Securities and the Swap Agreement.

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

          Section 5. Certificate Stated Amount and Denominations. On the
Closing Date, up to 1,320,000 Certificates with an aggregate Stated Amount of
$33,000,000 may be authenticated and delivered under the Base Trust Agreement
and this Series Supplement. The Stated Amount of the Certificates shall equal
100% of the initial principal amount of Underlying Securities sold to the
Trustee and deposited in the Trust. Such Stated Amount shall be calculated
without regard to Certificates authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Certificates pursuant
to Sections 5.3, 5.4 or 5.5 of the Base Trust Agreement.

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

                                      6
<PAGE>

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

          Section 8. Swap Payments; Collateral Account. (a) The Trust shall
pay to the Swap Counterparty (i) for so long as the Swap Agreement shall not
have been terminated, an amount equal to all interest payments received by the
Trust in respect of the Underlying Securities on each Underlying Securities
Payment Date or on any other date such amounts are received by the Trust,
excluding any amount of interest that accrued with respect to the Underlying
Securities from the Underlying Securities Payment Date immediately preceding
the Closing Date to, but excluding, the Closing Date and (ii) all other
amounts owing to the Swap Counterparty under the Swap Agreement to the extent
Trust assets are sufficient therefor, including but not limited to all Unpaid
Amounts upon the occurrence of any Swap Agreement Termination Event

          (b) The Trustee shall, within 3 Business Days of the Closing Date,
establish the Collateral Account. Any and all amounts at any time on deposit
in the Collateral Account shall be held in trust by the Trustee for the
benefit of Certificateholders and the Swap Counterparty; provided, that, the
only permitted withdrawal from or application of funds on deposit in, or
otherwise to the credit of, the Collateral Account shall be (i) for
application to obligations of the Swap Counterparty to the Trust under the
Swap Agreement in accordance with the terms of the Swap Agreement, or (ii) to
return Posted Collateral to the Swap Counterparty when and as required by the
Swap Agreement, which the Trustee shall return to the Swap Counterparty in
accordance with the related Swap Agreement. In the event any cash is held in
the Collateral Account, the Trustee shall hold such cash uninvested unless
otherwise directed by the Trustor in writing.

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

          Section 10. Distributions. (a) On each Distribution Date so long as
no Swap Agreement Termination Event has occurred for which the Trust is the
Defaulting Party or an Affected Party, the Trustee shall distribute to the
Certificateholders the Interest Collections. On the Maturity Date, and to the
extent received on any other Scheduled Distribution Date or any Underlying
Securities Redemption Distribution Date, so long as no Swap Agreement
Termination Event has occurred for which the Trust is the Defaulting Party or
an Affected Party, the Trustee shall distribute to the Certificateholders, the
principal amount of the Underlying Securities to the extent the principal of
the Underlying Securities is received by the Trustee on such date or during
the related Collection Period plus any accrued interest thereon.

                                      7
<PAGE>

          (b) If a Swap Agreement Termination Event has occurred for which the
Trust is the Defaulting Party or an Affected Party, the Trustee, first, shall
distribute all collections received on the Underlying Securities to the Swap
Counterparty until all amounts owing to the Swap Counterparty under the Swap
Agreement for payments in connection with such Swap Agreement Termination
Event (including any Unpaid Amounts) have been paid in full and, second, shall
distribute all remaining amounts to the Certificateholders. If the
distribution in the preceding sentence is insufficient to pay in full all
amounts owing to the Swap Counterparty, the Trustee shall proceed to liquidate
or distribute the Underlying Securities in accordance with Section 10(h). Upon
any liquidation of the Underlying Securities, the Trustee, first, shall
distribute the proceeds thereof to the Swap Counterparty until all amounts
owing to the Swap Counterparty have been paid in full and, second, shall
distribute all remaining amounts to the Certificateholders. In the event of a
Swap Agreement Termination Event, after paying all amounts due to the Swap
Counterparty as set forth in the first sentence of this Section 10(b), if no
Trust Termination Event has occurred, all Interest Collections shall
thereafter be distributed to Certificateholders on each applicable
Distribution Date. If a Swap Agreement Termination Event has occurred for
which the Swap Counterparty is the Defaulting Party or the only Affected
Party, notwithstanding the termination of the Swap Agreement, the Trustee
shall distribute any Unpaid Amounts to the Swap Counterparty from Interest
Collections on the Underlying Securities.

          (c) In all cases hereunder, if any payment with respect to the
Underlying Securities is made to the Trustee after the Underlying Securities
Payment Date on which such payment was due, the Trustee shall distribute such
amount received on the Business Day following such receipt.

          (d) In the event of a Payment Default while the Swap Agreement is in
effect and if any payment is due to the Swap Counterparty, the Underlying
Securities will be liquidated in accordance with Section 10(h). Otherwise, in
the event of a Payment Default, the Trustee shall proceed against the
Underlying Securities Issuer on behalf of the Certificateholders to enforce
the Underlying Securities or otherwise to protect the interests of the
Certificateholders, subject to the receipt of indemnity in form and substance
satisfactory to the Trustee; provided, that Holders of the Certificates
representing a majority of the Voting Rights on the Certificates will be
entitled to direct the Trustee in any such proceeding or direct the Trustee to
sell the Underlying Securities, subject to the Trustee's receipt of
satisfactory indemnity.

          (e) In the event of an Acceleration and a corresponding payment on
the Underlying Securities prior to any liquidation of the Underlying
Securities hereunder, the Trustee shall distribute the proceeds to the
Certificateholders no later than two (2) Business Days after the receipt of
immediately available funds pursuant to Section 10(b).

          (f) In the event the Trustee receives property other than cash in
respect of the Underlying Securities such property will be applied first, to
the Swap Counterparty until all amounts owing to the Swap Counterparty have
been paid in full and, second, to the Certificateholders. Property other than
cash will be liquidated by the Trustee, and the proceeds thereof distributed
in cash, to the extent necessary to pay to the Swap Counterparty all amounts
owed to it under the Swap Agreement and, thereafter, to the extent necessary
to avoid distribution of fractional securities to Certificateholders. In-kind
distribution of Underlying

                                      8
<PAGE>

Securities or other property to Certificateholders will be deemed to reduce
the Stated Amount of Certificates on a proportionate basis. Following
such in-kind distribution, all Certificates will be cancelled. No amounts will
be distributed to the Trustor in respect of the Underlying Securities. The
Swap Counterparty shall direct the Trustee with respect to any liquidation of
such property to the extent of the full amount owed to it under the Swap
Agreement.

          (g) If an SEC Reporting Failure occurs, then the Trustor shall
promptly notify the Trustee, the Swap Counterparty and the Rating Agency of
such SEC Reporting Failure and the Trustee shall, only if instructed by the
Trustor, proceed to liquidate or distribute the Underlying Securities in
accordance with Section 10(h).

          (h) If at any time, the Trustee is directed to sell the Underlying
Securities, the Trustee shall solicit bids for the sale of the Underlying
Securities with settlement thereof on or before the third (3rd) Business Day
after such sale from three leading dealers in the relevant market, which may
include but is not limited to any three of the following dealers: (1) Wachovia
Securities, (2) Goldman, Sachs & Co., (3) Lehman Brothers Inc., (4) Merrill
Lynch, Pierce, Fenner & Smith Incorporated, (5) Citigroup Global Markets Inc.,
(6) J.P. Morgan Securities Inc. and (7) Deutsche Bank Securities Inc.;
provided, however, that no bid from Wachovia Securities or any affiliate
thereof shall be accepted unless such bid equals the then fair market value of
such Underlying Securities. The Trustee shall not be responsible for the
failure to obtain a bid so long as it has made reasonable efforts to obtain
bids. If a bid for the sale of the Underlying Securities has been accepted by
the Trustee but the sale has failed to settle on the proposed settlement date,
the Trustee shall request new bids from such leading dealers. In any
circumstance in which the sale of the Underlying Securities is required
hereunder, the Trustee shall, to the extent it is so directed by the Trustor,
provide Certificateholders with the option to elect to receive an "in-kind"
distribution of their pro rata share of the Underlying Securities; provided,
that, (1) an in-kind distribution shall be subject to the prior sale of
Underlying Securities in accordance with the provisions of this Section 10(h)
to the extent necessary, to pay any amounts owing to the Swap Counterparty
under Section 10(b), (2) a Certificateholders' pro rata share of the
Underlying Securities shall be a principal amount of Underlying Securities
equal to the aggregate principal amount of the Underlying Securities minus the
amount required to be distributed to the Swap Counterparty pursuant to the
second sentence of Section 10(b) multiplied by a fraction the numerator of
which is the Stated Amount of that holder's Certificates and the denominator
of which is the aggregate principal amount of the Underlying Securities and
(3) odd-lot amounts that cannot be distributed in-kind because they are not
within the authorized denominations of the Underlying Securities shall be
distributed in cash. Any such in-kind distribution shall constitute the final
distribution in respect of the Certificates as to which such option is
exercised.

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

          (j) All distributions to Certificateholders shall be allocated pro
rata among the Certificates based on their respective Outstanding Amounts as
of the Record Date.

          (k) Notwithstanding any provision of the Agreement to the contrary,
to the extent funds are available, the Trustee will initiate payment in
immediately available funds by 1:00 P.M. (New York City time) on each
Distribution Date of all amounts payable to each

                                      9
<PAGE>

Certificateholder with respect to any Certificate held by such
Certificateholder or its nominee (without the necessity for any presentation
or surrender thereof or any notation of such payment thereon) in the manner
and at the address as each Certificateholder may from time to time direct the
Trustee in writing 15 days prior to such Distribution Date requesting that
such payment will be so made and designating the bank account to which such
payments shall be so made. The Trustee shall be entitled to rely on the last
instruction delivered by the Certificateholder pursuant to this Section 10(k)
unless a new instruction is delivered 15 days prior to a Distribution Date.

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

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

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

          (c) In the event that there is any Posted Collateral remaining in
the Collateral Account upon a Trust Termination Event, the Trustee shall
return such remaining collateral to the Swap Counterparty no later than the
date of termination of the Trust.

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

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

          (c) The parties acknowledge that the Trustee, as the holder of the
Underlying Securities, has the right to vote and give consents and waivers in
respect of the Underlying

                                      10
<PAGE>

Securities and enforce the other rights, if any, of a holder of the
Underlying Securities, except as otherwise limited by the Base Trust Agreement
or this Series Supplement. In the event that the Trustee receives a request
from the Underlying Securities Trustee, the Underlying Securities Issuer or,
if applicable, the Depositary with respect to the Underlying Securities, for
the Trustee's consent to any amendment, modification or waiver of the
Underlying Securities, or any document relating thereto, or receives any other
solicitation for any action with respect to the Underlying Securities, the
Trustee shall within two (2) Business Days mail a notice of such proposed
amendment, modification, waiver or solicitation to the Swap Counterparty and
each Certificateholder of record as of the date of such request. The Trustee
shall request instructions from the Certificateholders as to what action to
take in response to such request and shall be protected in taking no action if
no direction is received. Except as otherwise provided herein, the Trustee
shall consent or vote, or refrain from consenting or voting, in the same
proportion as the Certificates were actually voted or not voted by the Holders
thereof as of the date determined by the Trustee prior to the date such vote
or consent is required; provided, however, that, notwithstanding anything to
the contrary in the Base Trust Agreement or this Series Supplement, the
Trustee shall at no time vote in favor of or consent to any matter (i) which
would alter the timing or amount of any payment on the Underlying Securities
(including, without limitation, any demand to accelerate the Underlying
Securities) or (ii) which would result in the exchange or substitution of any
Underlying Security whether or not pursuant to a plan for the refunding or
refinancing of such Underlying Security, except in each case with the
unanimous consent of the Certificateholders; provided, further, that the
Trustee shall not take any such action if it would affect the method, amount
or timing of payments due to the Swap Counterparty or otherwise materially
adversely affect the interests of the Swap Counterparty under the Swap
Agreement and result in a Swap Agreement Termination Event, in each case
without the prior written consent of the Swap Counterparty. The Trustee shall
have no liability for any failure to act or to refrain from acting resulting
from the Certificateholders' late return of, or failure to return, directions
requested by the Trustee from the Certificateholders.

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

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

          Section 13. Compensation of Trustee. The Trustee shall be
entitled to receive from the Trustor as compensation for its services
hereunder (which shall include the Trustee acting in any other capacity in
this transaction including, without limitation, as holder of collateral under
any Credit Support Instrument), trustee's fees pursuant to a separate
agreement between the Trustee and the Trustor, and shall be reimbursed for all
reasonable expenses, disbursements and advances incurred or made by it
(including the reasonable compensation, disbursements and expenses of its
counsel and other persons not regularly in its employ). The Trustor shall
indemnify and hold harmless the Trustee and its successors, assigns, agents
and servants against any and all loss, liability or reasonable expense
(including attorney's fees) incurred by it in connection with the
administration of this trust and the performance of its duties

                                      11
<PAGE>

thereunder (which shall include the Trustee acting in any other
capacity in this transaction including, without limitation, as holder of
collateral under any Credit Support Instrument). The Trustee shall notify the
Trustor promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Trustor shall not relieve the Trustor of its
obligations hereunder. The Trustor need not reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own willful misconduct, negligence or bad faith. The indemnities
contained in this Section 13 shall survive the resignation or termination of
the Trustee or the termination of this Agreement.

          Failure by the Trustor to pay, reimburse or indemnify the Trustee
shall not entitle the Trustee to any payment, reimbursement or indemnification
from the Trust, nor shall such failure release the Trustee from the duties it
is required to perform under this Series Supplement. Any unpaid, unreimbursed
or unindemnified amounts shall not be borne by the Trust and shall not
constitute a claim against the Trust, but shall be borne by the Trustee in its
individual capacity, and the Trustee shall have no recourse against the Trust
with respect thereto.

          Section 14. Modification or Amendment of the Base Trust Agreement,
the Series Supplement or the Swap Agreement. (a) The Trustee shall not enter
into any modification or amendment of the Base Trust Agreement or this Series
Supplement unless such modification or amendment is in accordance with Section
10.1 of the Base Trust Agreement. If the Rating Agency Condition is not
satisfied with respect to any proposed modification or amendment of the Base
Trust Agreement or this Series Supplement, then any such modification or
amendment must be approved by 100% of the Certificateholders. The Trustee
shall not enter into any amendment or modification of this Agreement that
would affect the method, amount or timing of payment due to the Swap
Counterparty or the consent rights of the Swap Counterparty hereunder or
otherwise materially adversely affect the interests of the Swap Counterparty
under the Swap Agreement and result in a Swap Agreement Termination Event, in
each case without the prior written consent of the Swap Counterparty. The
Trustee shall provide fifteen Business Days written notice to the Swap
Counterparty before entering into any amendment or modification of this
Agreement pursuant to this Section 14.

          (b) The Trustee shall not enter into any modification or amendment
of the Swap Agreement without the prior written consent of holders of
Certificates representing 66 ?% of the Voting Rights and without prior written
confirmation from the Rating Agency that such amendment will not result in a
reduction or withdrawal of the then current rating of the Certificates;
provided, however, that each of the Swap Counterparty and the Trustee may
amend the Swap Agreement without the prior written consent of
Certificateholders to cure any ambiguity in, or to correct or supplement any
provision of the Swap Agreement which may be inconsistent with any other
provision of the Swap Agreement, or to otherwise cure any defect in the Swap
Agreement, provided that any such amendment does not materially adversely
affect the interest of the Certificateholders and that the Rating Agency will
have given its prior written confirmation that such amendment will not result
in a reduction or withdrawal of the then current rating of the Certificates;
provided further, however, that notwithstanding anything to the contrary, no
amendment may alter the timing or amount of any payment on the Swap Agreement
without the prior consent of 100% of the Certificateholders and without giving
the Rating Agency prior written notice of any such amendment.

                                      12
<PAGE>

          (c) Until a Responsible Officer of the Trustee has actual knowledge
of the occurrence of an event that would constitute a Swap Agreement
Termination Event, the Trustee shall be entitled to assume (and shall be fully
protected, indemnified and held harmless in doing so) that no Swap Agreement
Termination Event has occurred and may accordingly seek instructions under
Section 12 and this Section 14 exclusively from the Swap Counterparty.

          Section 15. Assignment of Rights under the Swap Agreement. The
Trustee may consent to any transfer or assignment by the Swap Counterparty of
its rights under the Swap Agreement, so long as the Rating Agency shall have
given its prior written confirmation that such transfer or assignment will not
result in a reduction or withdrawal of the then current rating of the
Certificates.

          Section 16. Accounting. Notwithstanding Section 3.16 of the Base
Trust Agreement, "Independent Public Accountants' Administration Report," no
such accounting reports shall be required. Pursuant to Section 4.2 of the Base
Trust Agreement, "Reports to Certificateholders," the Trustee shall cause the
statement described in Section 4.2 to be prepared and forwarded as provided
therein.

          Section 17. No Investment of Amounts Received on Underlying
Securities. All amounts received on or with respect to the Underlying
Securities and all payments made to the Trust on or with respect to the Swap
Agreement shall be held uninvested by the Trustee.

          Section 18. No Event of Default. There shall be no Events of Default
defined with respect to the Certificates.

          Section 19. Notices. (a) All directions, demands and notices
hereunder and under the Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered or mailed by first
class mail, postage prepaid or by express delivery service or by certified
mail, return receipt requested or delivered in any other manner specified
herein, (i) in the case of the Trustor, to Synthetic Fixed-Income Securities,
Inc., One Wachovia Center 301 South College Street, DC-7 Charlotte, NC 28288,
Attention: Structured Notes Desk, or such other address as may hereafter be
furnished to the Trustee in writing by the Trustor, and (ii) in the case of
the Trustee, to The Bank of New York, 101 Barclay Street, New York, NY 10286,
Attention: Corporate Trust, facsimile number (212) 815-2940, or such other
address as may hereafter be furnished to the Trustor in writing by the
Trustee.

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

          (c) In the event a Payment Default or an Acceleration occurs, the
Trustee shall promptly give notice to the Swap Counterparty and to the
Depositary or, for any Certificates which are not then held by the Depositary
or any other depository, directly to the registered holders of the
Certificates thereof. Such notice shall set forth (i) the identity of the
issue of Underlying Securities, (ii) the date and nature of such Payment
Default or Acceleration,

                                      13
<PAGE>

(iii) the principal amount of the interest or principal in default, (iv) the
Certificates affected by the Payment Default or Acceleration, and (v) any
other information which the Trustee may deem appropriate.

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

          (e) The Trustee shall, in connection with any notice or delivery of
documents to Certificateholders (whether or not such notice or delivery is
required pursuant to the Agreement), provide such notice or documents to the
Swap Counterparty concurrently with the delivery thereof to the
Certificateholders.

          Section 20. Access to Certain Documentation. Access to documentation
regarding the Underlying Securities will be afforded without charge to any
Certificateholder so requesting pursuant to Section 3.17 of the Base Trust
Agreement, "Access to Certain Documentation." Additionally, the Trustee shall
provide at the request of any Certificateholder without charge to such
Certificateholder the name and address of each Certificateholder of
Certificates hereunder as recorded in the Certificate Register for purposes of
contacting the other Certificateholders with respect to their rights hereunder
or for the purposes of effecting purchases or sales of the Certificates,
subject to the transfer restrictions set forth herein.

          Section 21. Advances. There is no Administrative Agent specified
herein; hence no person (including the Trustee) shall be permitted or
obligated to make Advances as described in Section 4.3 of the Base Trust
Agreement, "Advances."

          Section 22. Ratification of Agreement. With respect to the Series
issued hereby, the Base Trust Agreement (including the grant of a security
interest in Section 10.8 of the Base Trust Agreement with respect to the
Underlying Securities conveyed hereunder), as supplemented by this Series
Supplement, is in all respects ratified and confirmed, and the Base Trust
Agreement as so supplemented by this Series Supplement shall be read, taken
and construed as one and the same instrument. To the extent there is any
inconsistency between the terms of the Base Trust Agreement and this Series
Supplement, the terms of this Series Supplement shall govern.

          Section 23. Counterparts. This Series Supplement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and
the same instrument.

          Section 24. Governing Law. This Series Supplement and each
Certificate issued hereunder shall be governed by and construed in accordance
with the laws of the State of New York applicable to agreements made and to be
performed entirely therein without reference to such State's principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws. The State of New York is the securities intermediary's jurisdiction of
the Securities Intermediary for purposes of the UCC.

                                      14
<PAGE>

          Section 25. Certificate of Compliance. The Trustor shall deliver to
the Trustee and the Swap Counterparty on or prior to June 30 of each year
prior to a Trust Termination Event the Officer's Certificate as to compliance
as required by Section 6.1(b) of the Base Trust Agreement.

          Section 26. Certain Filing to be Made by the Trustee. In the event
that an event requiring the sale of the Underlying Securities under this
Agreement occurs and the Underlying Securities are liquidated at a loss, the
Trustee will disclose pursuant to Treasury Regulation Section 1.6011-4 the
loss in accordance with the procedures of such regulation, unless the Trustee
obtains advice from counsel that such disclosure is not necessary. In general,
the Trustee will (x) attach a completed Form 8886 to its tax return in the
year the requisite loss occurs and (y) file a completed form with the Office
of Tax Shelter Analysis (OTSA) at: Internal Revenue Service LM:PFTG:OTSA,
Large and Midsize Business Division, 1111 Constitution Avenue., NW.,
Washington DC 20224 (or such other address subsequently required).

          Section 27. Establishment of Accounts. The Securities Intermediary
and the Trustee hereby represent and warrant that:

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

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

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

          Section 28. Statement of Intent. It is the intention of the parties
hereto that, for purposes of federal income taxes, state and local income and
franchise taxes and any other taxes imposed upon, measured by or based upon
gross or net income, the Trust shall be treated as a grantor trust, but
failing that, as a partnership (other than a publicly traded partnership
taxable as a corporation) and, in any event, shall not be classified as a
corporation. The parties hereto agree that, unless otherwise required by
appropriate tax authorities, the Trustee shall file or cause to be filed
annual or other necessary returns, reports and other forms consistent with
such intended characterization. In the event that the Trust is characterized
by appropriate tax authorities as a partnership for federal income tax
purposes, each Certificateholder, by its acceptance of its Certificate, agrees
to report its respective share of the items of income, deductions, and credits
of the Trust on its respective returns. As further consideration for each
Certificateholder's purchase of a Certificate, each such Certificateholder is
deemed to agree not to irrevocably delegate to any person (for a period of
more than one year) authority to purchase, sell or exchange its Certificates.

          Each Certificateholder (and each beneficial owner of a Certificate)
by acceptance of its Certificate (or its beneficial interest therein) agrees,
unless otherwise required by

                                      15
<PAGE>

appropriate tax authorities, to file its own tax returns and reports in a
manner consistent with the characterization indicated above.

          Section 29. Filing of Partnership Returns. In the event that the
Trust is characterized (by appropriate tax authorities) as a partnership for
United States federal income tax purposes the Trustor agrees to reimburse the
Trust for any expenses associated with the filing of partnership returns (or
returns related thereto).

          Section 30. "Financial Assets" Election. The Securities Intermediary
hereby agrees that the Underlying Securities credited to the Certificate
Account and any Posted Collateral credited to the Collateral Account shall be
treated as a "financial asset" within the meaning of Section 8-102(a)(9) of
the UCC.

          Section 31. Trustee's Entitlement Orders. If at any time the
Securities Intermediary shall receive any order from the Trustee directing the
transfer or redemption of any Underlying Securities credited to the Accounts,
the Securities Intermediary shall comply with such entitlement order without
further consent by the Trustor or any other Person. The Securities
Intermediary shall take all instructions (including without limitation all
notifications and entitlement orders) with respect to the Accounts solely from
the Trustee.

          Section 32. Conflict with Other Agreements. The Securities
Intermediary hereby confirms and agrees that:

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

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

          (c) It has not entered into, and until the termination of the
Agreement will not enter into, any agreement with any Person purporting to
limit or condition the obligation of the Securities Intermediary to comply
with entitlement orders as set forth in Section 31 hereof.

          Section 33. Additional Trustee and Securities Intermediary
Representations. The Trustee and the Securities Intermediary each hereby
represents and warrants as follows:

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

          (b) The Trustee and the Securities Intermediary each has not granted
any lien on the Underlying Securities nor are the Underlying Securities
subject to any lien on properties of the Trustee or the Securities
Intermediary in its individual capacity; the Trustee and the Securities
Intermediary each has no actual knowledge and has not received actual notice
of any

                                      16
<PAGE>

lien on the Underlying Securities (other than any liens of the Trustee
in favor of the beneficiaries of the Trust Agreement); other than the
interests of the Trustee, the Certificateholders and the Swap Counterparty,
the books and records of the Trustee and the Securities Intermediary each do
not identify any Person as having an interest in the Underlying Securities;
and

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

          Section 34. Additional Trustor Representations. The Trustor hereby
represents and warrants to the Trustee as follows:

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

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

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

          Section 35. Assesment and Attestation Requirements. The Trustee
agrees to provide, at the Trustor's direction and expense (i) reports on
assessments of compliance with servicing criteria and (ii) attestation reports
on assessments of compliance with servicing criteria prepared by an
independent public accountant sufficient for the Trustor on behalf of the
Trust, both in order to satisfy the Trustor's obligations under Rules 13a-18
and 15d-18 of the Exchange Act and Items 1122 and 1123 of Regulation AB.

          Section 36. Additional Rights of the Swap Counterparty. Section
10.8 of the Base Trust Agreement is hereby modified for purposes of this
Series Supplement to provide that the security interest referred to and
created pursuant thereto in the Trust assets shall, in addition to the
obligations provided for under Section 10.8(b)(3), secure all of the
obligations of the Trustor and the Trust to the Swap Counterparty under the
Swap Agreement and this Agreement. The Swap Counterparty shall have the rights
of a third party beneficiary with respect to this Agreement.

          Section 37. Modification of Certain Provisions of Base Trust
Agreement. The provisions of the Base Trust Agreement shall be modified as
they are applied with respect to this Series of Certificates to provide that
(i) notwithstanding Section 3.9 of the Base Trust Agreement, the Certificate
Account shall be held for the benefit of Certificateholders and the Swap
Counterparty and amounts in the Certificate Account shall be used to make
distributions to

                                      17
<PAGE>

the Swap Counterparty as and when required under this Series
Supplement, (ii) the appointment of any successor of the Trustee under Section
8.7 of the Base Trust Agreement shall be subject to the prior approval of the
Swap Counterparty and (iii) notwithstanding Section 9.1(a) of the Base Trust
Agreement and subject to the proviso therein, the respective obligations and
responsibilities under this Agreement of the Trustor and the Trustee shall
terminate upon the distribution to Certificateholders and the Swap
Counterparty of all amounts held in all the Accounts and required to be paid
to such Holders or the Swap Counterparty pursuant to this Agreement and the
Swap Agreement on the Distribution Date coinciding with or following the final
payment on or other liquidation of the Underlying Securities and the
disposition of all amounts acquired therefrom in accordance with this
Agreement and the Swap Agreement and the disposition of the final payments
received under the Swap Agreement.

          Section 38. Evidence of Integration for Tax Purposes. The Trustee
retains Exhibit E on behalf of each Certificateholder.

          Section 39. Optional Exchange.

          (a) On any Business Day occurring on or after April 15, 2006,
subject to satisfaction of all of the conditions set forth in clause (b), the
Depositor may exchange Certificates held by it for a distribution of
Underlying Securities representing the same percentage of the Underlying
Securities as such Certificates represent of all outstanding Certificates.

          (b) The following conditions shall apply to any Optional Exchange:

             (A) A notice specifying the number of Certificates being
          surrendered and the optional exchange date shall be delivered to the
          Trustee no less than 5 days (or such shorter period acceptable to
          the Trustee) but not more than 30 days before the optional exchange
          date.

             (B) Certificates shall be surrendered to the trustee no
          later than 10:00 a.m. (New York City time) on the optional exchange
          date.

             (C) The Trustee shall have received an opinion of counsel
          stating that the Optional Exchange would not cause the Trust to be
          classified as a corporation or publicly traded partnership taxable
          as a corporation for federal income tax purposes.

             (D) The Trustee shall not be obligated to determine
          whether an Optional Exchange complies with the applicable provisions
          for exemption under Rule 3a-7 of the Investment Company Act of 1940,
          as amended, or the rules or regulations promulgated thereunder.

             (E) The provisions of Section 4.5 of the Base Trust
          Agreement shall not apply to an Optional Exchange pursuant to this
          Section 39. This Section 39 shall not provide any Person with a lien
          against, an interest in or a right to specific performance with
          respect to the Underlying Securities; provided that satisfaction of
          the conditions set forth in this Section 39 shall entitle the
          Depositor to a distribution thereof.

                                      18
<PAGE>

             (F) The aggregate principal balance of Certificates
          exchanged in connection with any Optional Exchange pursuant to this
          Section 39 shall be in an amount that results in a distribution of
          Underlying Securities in an even multiple of the minimum
          denomination of the Underlying Securities.

             (G) No Swap Agreement Termination Event shall have
          occurred as a result of the Optional Exchange except to the extent
          of a termination resulting from the reduction in the Hedge Notional
          Amount (as defined in the Swap Agreement) to an amount equal to the
          principal amount of the Underlying Securities after giving effect to
          the Optional Exchange.

              (H) Any payments due under the Swap Agreement as a result
          of the reduction in such Hedge Notional Amount and any such Swap
          Agreement Termination Event (x) that are due to the Swap
          Counterparty (including but not limited to Unpaid Amounts) shall
          have been paid to the Swap Counterparty by the Depositor and (y)
          that are payable by the Swap Counterparty, shall be payable for the
          account of the Depositor.

          (c) The Trustee shall on behalf of the Trust, prepare for signature
by the Depositor and file with the Commission, following the execution thereof
by the Depositor, a report on Form 8-K within 4 business days after each
optional exchange pursuant this Section 39.

                                      19
<PAGE>

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

                                       SYNTHETIC FIXED-INCOME SECURITIES,
                                       INC.

                                       By: /s/ Jeremy Swinson
                                           -------------------------------------
                                                   Authorized Signatory

                                       THE BANK OF NEW YORK, as Trustee and
                                       Securities Intermediary

                                       By: /s/ Kevin Pennant
                                           -------------------------------------
                                                   Responsible Officer

<PAGE>

                                                                      EXHIBIT A

          IDENTIFICATION OF THE UNDERLYING SECURITIES AS OF CLOSING DATE

Underlying Securities Issuer:                 The Procter & Gamble Company

Underlying Securities:                        $33,000,000 5.80% Notes due 2034

Maturity Date/Final Distribution Date:        August 15, 2034

Original Principal Amount Issued:             $600,000,000.

CUSIP No.:                                    742718DB2.

Stated Interest Rate:                         5.80% per annum

Interest Payment Dates:                       February 15 and August 15

Principal Amount of Underlying                $33,000,000
Securities Deposited Under Trust
Agreement:

The Underlying Securities will be held by the Trustee as securities
entitlements credited to an account of the Trustee or its agent at the
Depositary.

                                     A-1
<PAGE>

                                                                      EXHIBIT B

                 TERMS OF THE CERTIFICATES AS OF CLOSING DATE

Maximum Number of STRATSSM             1,320,000.
Certificates, Series 2006-1:

Aggregate Stated Amount of STRATSSM    $33,000,000.
Certificates Series 2006-1:

Authorized Denomination:               $25 and integral multiples thereof.

Rating Agency:                         S&P.

Closing Date:                          February 28, 2006.

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

Trustee's Fees:                        The Trustee's fees shall be payable by
                                       the Trustor pursuant to a separate fee
                                       agreement between the Trustee and the
                                       Trustor.

Initial Certificate Registrar:         The Bank of New York

Corporate Trust Office:                The Bank of New York, 101 Barclay
                                       Street, New York, NY 10286
                                       Attention: Corporate Trust Department,
                                       Regarding STRATSSM Trust For Procter
                                       & Gamble Securities, Series 2006-1

                                     B-1
<PAGE>

                                                                      EXHIBIT C

                              FORM OF CERTIFICATE

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

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

CERTIFICATE NUMBER:  1                    $33,000,000 Certificate Stated Amount
CUSIP:  863121208                                        1,320,000 Certificates
CERTIFICATE INTEREST RATE:                               Variable Floating Rate

                     STRATSSM CERTIFICATES, SERIES 2006-1

evidencing an undivided interest in the Trust, as defined below, the assets of
which include $33,000,000 of 5.80% Notes due 2034 issued by the Underlying
Securities Issuer.

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

      THIS CERTIFIES THAT Cede & Co. is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in STRATSSM Trust For
Procter & Gamble Securities, Series 2006-1 (the "Trust") formed by SYNTHETIC
FIXED-INCOME SECURITIES, INC., as Trustor (the "Trustor") evidenced by
Certificates in the number and the Stated Amount set forth above.

      The Trust was created pursuant to a Base Trust Agreement, dated as of
February 28, 2006 (as amended and supplemented, the "Agreement"), between the
Trustor and The Bank of New York, a New York banking corporation, not in its
individual capacity but solely as Trustee (the "Trustee"), as supplemented by
the STRATSSM Certificates Series Supplement 2006-1, dated as of February 28,
2006 (the "Series Supplement" and, together with the Agreement, the "Trust

                                      C-1
<PAGE>

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

      This Certificate is one of the duly authorized Certificates designated
as "STRATSSM Certificates, Series 2006-1 (herein called the "Certificate" or
"Certificates"). This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, to which Trust Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound. The assets of the Trust include the Underlying
Securities, all proceeds of the Underlying Securities and the Trust's rights
under the Swap Agreement.

      Under the Trust Agreement, there shall be distributed on the dates
specified in the Trust Agreement (a "Distribution Date"), to the person in
whose name this Certificate is registered at the close of business on the
related Record Date, such Certificateholder's fractional undivided interest in
the amount of distributions of the Underlying Securities to be distributed to
Certificateholders on such Distribution Date and distributions to the Trust
under the Swap Agreement. The Underlying Securities will pay interest on
February 15 and August 15 of each year. The principal of the Underlying
Securities is scheduled to be paid on August 15, 2034. The Swap Agreement
provides for payments on the 15th calendar day of each month, commencing on
March 15, 2006.

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

      The Underlying Securities held by the Trust are subject to the rights of
the Swap Counterparty, as provided for in the Series Supplement and the Swap
Agreement, and each Certificateholder, by accepting its Certificate,
acknowledges such rights in accordance with the terms of the Series Supplement
and the Swap Agreement.

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

      By acceptance of a Certificate, each Certificateholder (1) elects to
integrate the Underlying Securities and the Swap Agreement for United States
federal income tax purposes, (2) authorizes and directs the trustee (or the
trustee's agent) to retain, as part of the Certificateholder's books and
records, information that (a) describes the Underlying Securities and the Swap
Agreement, (b) identifies the two positions as integrated for federal income
tax

                                      C-2
<PAGE>

purposes and (c) describes the features of the resulting "synthetic" debt
instrument and (3) agrees to retain copies of such information as provided to
the Certificateholder by the Trust.

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

      Certificates may not be acquired by or for the account of any employee
benefit plan, trust or account, including an individual retirement account,
that is subject to the requirements of Title I of the Employee Retirement
Income Security Act of 1974, as amended, or that is described in Section
4975(e)(1) of the Code, or by or for the account of any entity whose
underlying assets include any assets subject to these laws by reason of
investment in that entity by such plans, trusts or accounts. By accepting and
holding this Certificate, the holder of this Certificate will be deemed to
have represented and warranted that it is not a plan or entity described
above, and that its acquisition and holding of this Certificate are in
compliance with the foregoing restrictions.

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

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

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

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

                                     C-3
<PAGE>

IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed as of the date set forth below.

                                     STRATSSM TRUST FOR PROCTER &
                                     GAMBLE SECURITIES, SERIES 2006-1

                                     By:  THE BANK OF NEW YORK, not in its
                                     individual capacity but solely as Trustee

                                     By:__________________________________
                                        Authorized Signatory

Dated:  February 28, 2006

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the STRATSSM Certificates, Series 2006-1, described in the
Trust Agreement referred to herein.

THE BANK OF NEW YORK,
not in its individual capacity but solely as Trustee

By:______________________________
        Authorized Signatory

                                     C-4
<PAGE>

                                  ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

_______________________________________________________________________________

(Please print or type name and address, including postal zip code, of
assignee) __________________________ the within Certificate, and all rights
thereunder, hereby irrevocably constituting and appointing __________________
Attorney to transfer said Certificate on the books of the Certificate
Register, with full power of substitution in the premises.

Dated:

                                               ______________________________*

*NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Signatures must be guaranteed
by an "eligible guarantor institution" meeting the requirements of the
Certificate Registrar, which requirements include membership or participation
in the Security Transfer Agent Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Certificate
Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                     C-5
<PAGE>

                                                                      EXHIBIT D

                                                                    Exhibit D-1

(Multicurrency -- Cross Border)

                                    ISDA(R)
                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

                         dated as of February 28, 2006

Wachovia Bank, National Association and STRATS(SM) Trust for Procter & Gamble
Securities, Series 2006-1

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.

                                    D-1-1
<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.

                                    D-1-2
<PAGE>

         (ii) Liability. If: --

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

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

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

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

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

3.   Representations

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

(a)  Basic Representations.

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

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

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

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

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

                                    D-1-3
<PAGE>

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

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

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

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

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

4.   Agreements

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

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

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

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

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

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

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

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

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

(e)  Payment of Stamp Tax. Subject to Section 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,

                                    D-1-4
<PAGE>

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

5.   Events of Default and Termination Events

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

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

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

         (iii) Credit Support Default.

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

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

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

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

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

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

                                    D-1-5
<PAGE>

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

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

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

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

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

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

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

                                    D-1-6
<PAGE>

Upon Merger if the event is specified pursuant to (iv) below or an Additional
Termination Event if the event is specified pursuant to (v) below: --

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

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

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

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

         (iii) Tax Event Upon Merger. The party (the "Burdened Party") on the
         next succeeding Scheduled Payment Date will either (1) be required to
         pay an additional amount in respect of an 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.

                                    D-1-7
<PAGE>

6.   Early Termination

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

                                    D-1-8
<PAGE>

         continuing, designate a day not earlier than the day such notice is
         effective as an Early Termination Date in respect of all Affected
         Transactions.

(c)  Effect of Designation.

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

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

(d)  Calculations.

         (i) Statement. On or as soon as reasonably practicable following the
         occurrence of an Early Termination Date, each party will make the
         calculations on its part, if any, contemplated by Section 6(e) and
         will provide to the other party a statement (1) showing, in
         reasonable detail, such calculations (including all relevant
         quotations and 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

                                    D-1-9
<PAGE>

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

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

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

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

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

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

                                    D-1-10
<PAGE>

7.   Transfer

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

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

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

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

8.   Contractual Currency

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

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

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

(d)  Evidence of Loss. For 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.

                                    D-1-11
<PAGE>

9.   Miscellaneous

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

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

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

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

(e)  Counterparts and Confirmations.

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

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

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

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

10.  Offices; Multibranch Parties

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

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

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

11.  Expenses

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

                                    D-1-12
<PAGE>

to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12.  Notices

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

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

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

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

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

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

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

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

13.  Governing Law and Jurisdiction

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

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

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

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

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 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

                                    D-1-13
<PAGE>

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

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

14.  Definitions

As used in this Agreement: --

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

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

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

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

"Applicable Rate" means: --

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

(b)  in respect of an obligation to pay an amount under Section 6(e) of either
party 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.

                                    D-1-14
<PAGE>

"Defaulting Party" has the meaning specified in Section 6(a).

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

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

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

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

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

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

"Loss" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be
its total losses and costs (or gain, in which case expressed as a negative
number) in connection with this Agreement or that Terminated Transaction or
group of Terminated Transactions, as the case may be, including any loss of
bargain, cost of funding or, at the election of such party but without
duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position
(or any gain resulting from any of them). Loss includes losses and costs (or
gains) in respect of any payment or delivery required to have been made
(assuming satisfaction of each applicable condition precedent) on or before
the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(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

                                    D-1-15
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

                                    D-1-16
<PAGE>

"Specified Indebtedness" means, subject to the Schedule, any obligation
(whether present or future, contingent or otherwise, as principal or surety or
otherwise) in respect of borrowed money.

"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

                                    D-1-17
<PAGE>

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

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

WACHOVIA BANK, NATIONAL ASSOCIATION        STRATS(SM) TRUST FOR PROCTER & GAMBLE
                                           SECURITIES, SERIES 2006-1

                                           By: The Bank of New York, as Trustee

By: /s/ Bruce Young                        By:  /s/ Kevin Pennant
    -------------------------------            --------------------------------
     Name:   Bruce Young                       Name:  Kevin Pennant
     Title:                                    Title:
     Date:  February 28, 2006                  Date:  February 28, 2006

                                    D-1-18
<PAGE>
                                                                   Exhibit D-2

                                  Exhibit D-2

                                   SCHEDULE
                                    to the
                               MASTER AGREEMENT
                     dated as of February 28, 2006 between
                WACHOVIA BANK, NATIONAL ASSOCIATION ("Party A")
                                      and
                STRATS(SM) TRUST FOR PROCTER & GAMBLE SECURITIES,
                           SERIES 2006-1 ("Party B")

Part 1. Termination Provisions

(a)   "Specified Entity" means, with respect to Party A for all purposes of
      this Agreement, none specified, and with respect to Party B for all
      purposes of this Agreement, none specified.

(b)   "Specified Transaction" has its meaning as defined in Section 14 of this
      Agreement.

(c)   "Cross Default" does not apply to Party A or Party B.

(d)   "Credit Event Upon Merger" does not apply to Party A or Party B.

(e)   "Automatic Early Termination" does not apply to Party A or Party B.

(f)   Payments on Early Termination. Except as otherwise provided in this
      Schedule, "Market Quotation" and the "Second Method" apply. In the case
      of any Terminated Transaction that is, or is subject to, any unexercised
      option, the words "economic equivalent of any payment or delivery"
      appearing in the definition of "Market Quotation" shall be construed to
      take into account the economic equivalent of the option. Additionally,
      in the event an Early Termination Date is designated by Party B in
      connection with an Event of Default or Termination Event with respect to
      which Party A is the Defaulting Party or sole Affected Party, then in no
      event shall any amount be payable under Section 6(e) of the Agreement by
      either Party A or Party B.

(g)   "Termination Currency" means United States Dollars.

(h)   Limitation on Defaults. The Events of Default specified in Section 5 of
      this Agreement shall not apply to Party A or Party B except for the
      following:

      (i)   Section 5(a)(i) of this Agreement (Failure to Pay or Deliver).

      (ii)  Section 5(a)(vii) of this Agreement (Bankruptcy), provided that,
            the failure to make any payment of interest on or principal of the
            Certificates which does not give rise to an event of default
            pursuant to the terms of the Trust Agreement shall not be deemed
            to constitute a Bankruptcy within the meaning of clause (2)
            thereof with respect to Party B; and

      (iii) Section 5(a)(viii) of this Agreement (Merger Without Assumption).

                                    D-2-1
<PAGE>

(i)   Additional Termination Events.

      (i)   The occurrence of any of the following events shall be an
            Additional Termination Event:

            (A)   the unsecured and unsubordinated debt obligations of Party
                  A, or its Credit Support Provider, as applicable, are
                  assigned a rating by S&P below the Hedge Counterparty
                  Required Rating ("S&P Required Rating Downgrade Event"), and
                  Party A fails to make a Permitted Transfer in accordance
                  with the provisions of Part 6(a)(ii) of this Schedule within
                  seven (7) Business Days of such S&P Required Rating
                  Downgrade Event, provided, however, that termination due to
                  any such S&P Required Rating Downgrade Event shall not be
                  permitted if S&P agrees in writing that it will not
                  downgrade, reduce, suspend or withdraw S&P's then-current
                  rating on the Certificates if this Agreement remains in full
                  force and effect with respect to each Transaction hereunder.
                  Party A shall notify Party B within one (1) Business Day of
                  the occurrence of a S&P Required Rating Downgrade Event;

            (B)   the unsecured and unsubordinated debt obligations of Party A
                  or its Credit Support Provider, as applicable, are assigned
                  a rating by S&P below the Hedge Counterparty Collateral
                  Threshold Rating ("Collateral Rating Downgrade Event"),
                  unless Party A either (i) amends the Credit Support Annex
                  with Party B and S&P confirms in writing that such amended
                  Credit Support Annex will not cause the reduction or
                  withdrawal of its then current rating of any outstanding
                  class of Certificates under the Trust Agreement with respect
                  to which it has previously issued a rating and Party A
                  transfers to Party B's Custodian under such amended Credit
                  Support Annex an amount of Eligible Collateral equal to the
                  Delivery Amount required to be transferred with respect to
                  the Affected Transactions in accordance with such amended
                  Credit Support Annex or (ii) makes a Permitted Transfer with
                  respect to the Affected Transactions or (iii) provides
                  Alternative Credit Support (as defined below) with respect
                  to the Affected Transactions, on or before the Credit
                  Support Commencement Date. Party A shall notify Party B
                  within five (5) Business Days of the occurrence of a
                  Collateral Rating Downgrade Event;

            (C)   The Certificates become due and payable prior to their final
                  scheduled maturity date for any reason;

            (D)   Party B fails to comply with sub-paragraph (e)(i) of Part 6
                  of this Schedule; any prepayment, redemption, retirement,
                  liquidation or distribution of the Underlying Securities
                  (including as a result of a Payment Default, an Acceleration
                  or an SEC Reporting Failure (as such terms are defined in
                  the Trust Agreement)) or other prepayment in full of all
                  Certificates outstanding occurs under the Trust Agreement
                  (or any notice is given to that effect and such prepayment,
                  redemption, retirement, liquidation or distribution of the
                  Underlying Securities is not capable of being rescinded);
                  any Trust

                                    D-2-2
<PAGE>

                  Termination Event (as defined in the Trust Agreement) occurs
                  under the Trust Agreement (or any notice is given by the
                  Trustee or any other party authorized by the terms of the
                  Trust Agreement of by law) and the Trustee, the
                  Certificateholders or any other authorized party thereunder
                  takes any action or exercises any rights or remedies under
                  the Trust Agreement or under law that would result in (1)
                  the appropriation of all right, title and interest in and to
                  the assets under the Trust Agreement in satisfaction, in
                  whole or in part, of the obligations secured thereby, (2)
                  the sale, liquidation or disposition of the assets under the
                  Trust Agreement and the application of the proceeds thereof,
                  in whole or in part, to the obligations secured thereby, or
                  (3) the release of the security interest in the assets
                  granted under the Trust Agreement in exchange for receiving
                  either the payment, in whole or in part, of the obligations
                  secured thereby or substitute collateral or credit support;

            (E)   Party B fails to comply with sub-paragraph (j)(i) of Part 1
                  of this Schedule, or any Additional Termination Event occurs
                  under paragraph (j) of Part 1 of this Schedule in either
                  event to the extent of the applicable Affected Notional
                  Amount as described in that paragraph; or

            (F)   On any Distribution Date, the significance percentage
                  represented by the Transactions under this Agreement is 10%
                  or more and Party A fails to: (x) post Collateral to secure
                  its obligations hereunder in accordance with the terms of
                  the Credit Support Annex in an amount sufficient to reduce
                  the significance percentage to 7% or less; (y) provide
                  financial information and all necessary consents meeting the
                  applicable requirements of Item 1115(b) of Regulation AB; or
                  (z) transfer this Agreement in accordance with Part 6(a)
                  hereof to another swap provider that provides, as to itself,
                  the financial information and consents described in clause
                  (y) and that is otherwise acceptable to Party B, the
                  Depositor and Trustee and as to which S&P has given its
                  prior written confirmation that such transfer will not
                  result in a reduction or withdrawal of the then current
                  rating of the Certificates.

      (ii)  For purposes of the right to terminate under Section 6(b)(iv),
            Party A will be the sole Affected Party for any Additional
            Termination Event described in clause (A), (B) and clause (F) of
            sub-paragraph (i) above, and Party B will be the sole Affected
            Party for any other Additional Termination Event.

      (iii) Notwithstanding which party is the Affected Party for any
            Additional Termination Event, upon the occurrence of an Early
            Termination Date for any Additional Termination Event under this
            Part 1(i), Party A shall make the calculations under Section 6(e)
            of this Agreement as though it were the non-Affected Party for
            purposes of Section 6(e)(ii)(1) of this Agreement.

      (iv)  "Hedge Counterparty Required Rating" means, as applicable, at any
            time that any Certificates are outstanding under the Trust
            Agreement and have a long-term rating of at least A by S&P, with
            respect to a Person as an issuer or with respect to long-

                                    D-2-3
<PAGE>

            term senior unsecured debt of such Person, BBB- by S&P (for so
            long as any Certificates are outstanding under the Trust Agreement
            and are rated by S&P); provided that should S&P effect an overall
            downward adjustment of its short-term or long-term ratings, then
            the applicable Hedge Counterparty Required Rating shall be
            downwardly adjusted accordingly; provided further, that any
            adjustment to the Hedge Counterparty Required Rating shall be
            subject to the prior written consent of S&P.

      (v)   "Hedge Counterparty Collateral Threshold Rating" means, so long as
            any Certificates are outstanding under the Trust Agreement and are
            rated by S&P, the applicable "Party A Long-Term Collateral
            Threshold Rating" as set forth in the following table and
            determined based upon the applicable "Actual Certificate Rating"
            and the applicable "Party A Short-Term Collateral Threshold
            Rating":

                        Party A Short-Term       Party A Long-Term
  Actual Certificate    Collateral Threshold     Collateral Threshold
  Rating(1)             Rating(2)                Rating(3)
  ------------------    --------------------     -------------------------
  AA- or above          A-1                      A
  AA- or above          Unrated                  A+
  A+                    A-2 or unrated           A-
  A                     A-2 or unrated           A-
  A- or below           Not applicable           Same rating as the Actual
                                                 Certificate Rating

            provided that should S&P effect an overall downward adjustment of
            its short-term or long-term ratings, then the applicable Hedge
            Counterparty Collateral Threshold Rating shall be downwardly
            adjusted accordingly; provided further, that any adjustment to the
            Hedge Counterparty Collateral Threshold Rating shall be subject to
            the prior written consent of S&P.

      (vi)  "Alternative Credit Support" means an absolute and unconditional
            guarantee, credit intermediation arrangement, letter of credit or
            other additional credit support or collateral, in a form which
            meets S&P's then current criteria with respect to such types of
            credit support reasonably acceptable to S&P and for which S&P
            confirms in writing that such support will not cause the reduction
            or withdrawal of its then current rating of any outstanding class
            of Certificates under the Trust Agreement with respect to which it
            has previously issued a rating.

--------------------------
1 For purposes hereof, the term "Actual Certificate Rating" means the actual
long-term rating assigned by S&P with respect to the Certificates outstanding
under the Trust Agreement, and in the event S&P has assigned more than one
long-term rating with respect to the Certificates, then the Actual Certificate
Rating shall be the highest of such long-term ratings.

2 For purposes hereof, the term "Party A Short-Term Collateral Threshold
Rating shall mean the rating assigned by S&P with respect to the short-term
debt of Party A, if any.

3 For purposes hereof, the term "Party A Long-Term Collateral Threshold Rating
shall mean the rating assigned by S&P with respect to the long-term debt of
Party A.

                                    D-2-4
<PAGE>

      (vii) "S&P" means, Standard & Poor's Ratings Services, a division of The
            McGraw-Hill Companies ("S&P") (so long as any Certificates deemed
            outstanding under the Trust Agreement are rated by S&P).

(j)   Mandatory Reduction Events. To protect Party A's interest in the Trust
      Agreement as a source of payment for Party B's obligations hereunder,
      including the priority of those payments under the Trust Agreement, the
      following provisions shall apply with respect to all Transactions
      hereunder:

      (i)   If either (x) without the prior written consent of Party A, Party
            B enters into any "Swap Agreement" (as defined in the Trust
            Agreement) on any date (a "Principal Payment Date") with any
            person or entity that would result in the Hedge Notional Amount
            exceeding the remaining Principal Balance on any date or (y) as
            the result of any payment, repayment, retirement or redemption of
            any amount of the Principal Balance under the Trust Agreement on
            any date (a "Principal Payment Date"), (A) the Principal Balance
            would be reduced to zero, or (B) the Hedge Notional Amount would
            exceed the remaining Principal Balance (after giving effect to
            that repayment), (each, a "Mandatory Reduction Event"), then not
            later than 1:00 p.m. (New York City time) on the date ("Mandatory
            Reduction Date") which is the second New York Business Day prior
            to that Principal Payment Date, Party B shall:

            (1)   notify Party A of that Mandatory Reduction Event, including
                  the amount to be repaid and the outstanding Hedge Notional
                  Amount; and

            (2)   specify in that notice each outstanding Transaction
                  hereunder and the corresponding amount by which the
                  Transactional Notional Amount of that Transaction is to be
                  reduced for that Mandatory Reduction Event ("Affected
                  Notional Amount") so that the Hedge Notional Amount for any
                  date (after giving effect to all such reductions) would not
                  exceed the Principal Balance for that date (after giving
                  effect to any repayment) (except that if the Principal
                  Balance is reduced to zero, the Hedge Notional Amount shall
                  be reduced to zero).

      "Hedge Notional Amount" means, as of the date of determination, an
      amount equal to the aggregate Notional Amount outstanding on that date
      and for the then current Calculation Period of all Transactions
      outstanding under any Swap Agreement (as defined in the Trust Agreement)
      then in effect.

      "Principal Balance" means, on any date, the aggregate principal amount
      of the Certificates, outstanding under the Trust Agreement on that date,
      after giving effect to all repayments, redemptions, advances or
      distributions of principal thereon on that date.

(ii)  For each Transaction for which a corresponding Affected Notional Amount
      is specified ("Affected Transaction") pursuant to sub-paragraph (i)
      above, the Notional Amount of that Affected Transaction shall be reduced
      as of the Mandatory Reduction Date by an amount equal to the Affected
      Notional Amount (and, if the Notional

                                    D-2-5
<PAGE>

      Amount otherwise accretes or amortizes after the Mandatory Reduction
      Date, the effect of that reduction shall be to reduce proportionately
      the Notional Amount of each future Calculation Period remaining under
      the Transaction), and an Additional Termination Event and Early
      Termination Date shall be deemed to have occurred on the Mandatory
      Reduction Date for that Transaction and Party B will be the sole
      Affected Party. For purposes of such Early Termination Date, the term
      "Terminated Transaction" as used in Section 6(e) of this Agreement shall
      be only that part of the Affected Transaction relating to the Affected
      Notional Amount, and the remainder of the Affected Transaction shall
      continue in full force and effect as a Transaction hereunder subject to
      the terms of this Agreement. The amount payable under Section 6(e) of
      this Agreement with respect to any such Early Termination Date shall be
      due and payable in accordance with such Section 6(e), provided that such
      payment shall be made no later than the next "Distribution Date" under
      the Trust Agreement to occur after the Mandatory Reduction Date, and
      provided further that the Market Quotation with respect to any
      Terminated Transaction under this sub-paragraph (ii) shall be determined
      on the basis of the quotation of one Reference Market-maker selected by
      Party A, which may be Party A to the extent its quotation is reasonably
      determined in good faith.

(k)   Events of Default. An Event of Default shall not occur with respect to
      Party A under Section 5(a)(v)(1) or (2) or Section 5(a)(vi) when the
      failure to pay or deliver, or the default, event of default or other
      similar condition or event, as the case may be, arises solely (i) out of
      a wire transfer problem or an operational or administrative error or
      omission (so long as the required funds or property required to make
      that payment or delivery were otherwise available to Party A), or (ii)
      from the general unavailability of the relevant currency due to exchange
      controls or other similar governmental action, but in either case only
      if the payment or delivery is made within three Local Business Days
      after the problem has been corrected, the error or omission has been
      discovered or the currency becomes generally available.

(l)   Modification of Section 5(a)(i) - Failure to Pay or Deliver. Section
      5(a)(i) is hereby amended to add the following language immediately
      after the word "party" at the end of the third line of such subsection
      "provided, however, such cure period shall not apply with respect to any
      amounts payable on the Termination Date".

(m)   Reports. For purposes hereof, Party B shall cause to be delivered to
      Party A within 10 days of the end of each calendar month a statement
      ("Reporting Statement") showing the Stated Amount of all Outstanding
      Certificates as of the end of such month and the Hedge Notional Amount
      as of the end of such month and each following month during the term of
      this Agreement for all outstanding Transactions under all Swap
      Agreements which Party B has entered into, whether the same have already
      commenced or are scheduled to commence on a future date.

Part 2.  Tax Provisions

(a)   Payer Tax Representations. For the purpose of Section 3(e) of this
      Agreement, each party makes the following representation:

                                    D-2-6
<PAGE>

      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, a party may rely on (i) the accuracy of
      any representations made by the other party pursuant to Section 3(f) of
      this Agreement, (ii) the satisfaction of the agreement 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) above and the
      other party does not deliver a form or document under Section 4(a)(iii)
      by reason of material prejudice to its legal or commercial position.

(b)   Payee Tax Representations. For the purpose of Section 3(f) of this
      Agreement:

      (i)   Party A makes the following representation(s):

            (A)   It is a national banking association organized or formed
                  under the laws of the United States and is a United States
                  resident for United States federal income tax purposes.

            (B)   Party A makes no other Payee Tax Representations.

      (ii)  Party B makes the following representation(s):

            (A)   It is a common law trust organized or formed under the laws
                  of New York.

(c)   Tax Forms.

      (i)   Delivery of Tax Forms. For the purpose of Section 4(a)(i), and
            without limiting Section 4(a)(iii), each party agrees to duly
            complete, execute and deliver to the other party the tax forms
            specified below with respect to it (A) before the first Payment
            Date under this Agreement, (B) promptly upon reasonable demand by
            the other party and (C) promptly upon learning that any such form
            previously provided by the party has become obsolete or incorrect.

            In addition, in the case of any tax form that is a Periodic Tax
            Form required to be delivered by Party B under this Agreement,
            Party B agrees to renew such tax form prior to its expiration by
            completing, executing and delivering to Party A that tax form
            ("Renewal Tax Form") in each succeeding third year following the
            year of execution of any such tax form or Renewal Tax Form
            delivered by Party B to Party A under this Agreement so that Party
            A receives each Renewal Tax Form not later than December 31 of the
            relevant year. "Periodic Tax Form" means any IRS Form W-9

                                    D-2-7
<PAGE>

            that is delivered by Party B to Party A without a U.S. Taxpayer
            Identification Number.

      (ii)  Tax Forms to be Delivered by Party A:

            Party A will deliver a correct, complete and duly executed U.S.
            Internal Revenue Service Form W-9 (or successor thereto), together
            with appropriate attachments, that eliminates U.S. federal
            withholding and backup withholding tax on payments to Party A
            under this Agreement.

      (iii) Tax forms to be Delivered by Party B:

            Party B will deliver a correct, complete and duly executed U.S.
            Internal Revenue Service Form W-9 (or successor thereto), together
            with appropriate attachments, that eliminates U.S. federal
            withholding and backup withholding tax on payments to Party B
            under this Agreement.

Part 3.  Documents

(a)   Delivery of Documents. When it delivers this Agreement, each party shall
      also deliver its Closing Documents to the other party in form and
      substance reasonably satisfactory to the other party. For each
      Transaction, a party shall deliver, promptly upon request, a duly
      executed incumbency certificate for the person(s) executing the
      Confirmation for that Transaction on behalf of that party.

(b)   Closing Documents.

      (i)   For Party A, "Closing Documents" mean:

            (A)   an opinion of Party A's counsel addressed to Party B in form
                  and substance acceptable to Party B;

            (B)   a duly executed incumbency certificate for each person
                  executing this Agreement for Party A, or in lieu thereof, a
                  copy of the relevant pages of its official signature book;
                  and

            (C)   each Credit Support Document (if any) specified for Party A
                  in this Schedule, together with a duly executed incumbency
                  certificate for the person(s) executing that Credit Support
                  Document, or in lieu thereof, a copy of the relevant pages
                  of its official signature book.

      (ii)  For Party B, "Closing Documents" mean:

            (A)   an opinion of Party B's counsel addressed to Party A in form
                  and substance acceptable to Party A;

            (B)   a duly executed copy of the Trust Agreement and the other
                  operative documents relating thereto and referred to
                  therein, executed and delivered by the parties thereto.

                                    D-2-8
<PAGE>

            (C)   a copy, certified by the secretary or assistant secretary of
                  Party B, of the resolutions of the board of directors or
                  extracts from the bylaws of Party B authorizing the
                  execution, delivery and performance by Party B of this
                  Agreement and authorizing Party B to enter into Transactions
                  hereunder; and

            (D)   a duly executed certificate of the secretary or assistant
                  secretary of Party B certifying the name and true signature
                  of each person authorized to execute this Agreement and
                  enter into Transactions for Party B.

Part 4.  Miscellaneous

(a)   Addresses for Notices. For purposes of Section 12(a) of this Agreement,
      all notices to a party shall, with respect to any particular
      Transaction, be sent to its address, telex number or facsimile number
      specified in the relevant Confirmation, provided that any notice under
      Section 5 or 6 of this Agreement, and any notice under this Agreement
      not related to a particular Transaction, shall be sent to a party at its
      address, telex number or facsimile number specified below; provided
      further that any notice under the Credit Support Annex shall be sent to
      a party at its address, telex number or facsimile number specified in
      the Credit Support Annex.

      To Party A:

      WACHOVIA BANK, NATIONAL ASSOCIATION
      301 South College, DC-8
      Charlotte, NC 28202-0600
      Attention: Bruce M. Young
      Senior Vice President, Risk Management

      Fax: (704) 383-0575
      Phone: (704) 383-8778

      To Party B:

      STRATS(SM) Trust for Proctor & Gamble Securities, Series 2006-1
      The Bank of New York
      101 Barclay Street
      New York, NY 10286

      Attention: Fernando Acebedo

      Fax:     (212) 815-2830
      Phone:   (212) 815-2915

(b)   Process Agent. Not applicable.

(c)   Offices. Section 10(a) applies.

                                    D-2-9
<PAGE>

(d)   Multibranch Party. Neither party is a Multibranch Party.

(e)   "Calculation Agent" means Party A.

(f)   Credit Support Document.

      (i)   For Party A, the following is a Credit Support Document: a Credit
            Support Annex dated the date hereof and duly executed and
            delivered by Party A and Party B and any applicable document
            governing Alternative Credit Support beginning on the effective
            date of such document.

      (ii)  For Party B, the following is a Credit Support Document: a Credit
            Support Annex dated the date hereof and duly executed and
            delivered by Party A and Party B.

(g)   Credit Support Provider.

      (i)   For Party A, Credit Support Provider means: none specified;
            provided that such party (other than Party A) executing a document
            governing Alternative Credit Support shall be a Credit Support
            Provider hereunder beginning on the effective date of such
            document.

      (ii)  For Party B, Credit Support Provider means: none specified.

(h)   Governing Law. This Agreement will be governed by and construed in
      accordance with the law (and not the law of conflicts except with
      respect to ss.ss. 5-1401 and 5-1402 of the New York General Obligations
      Law) of the State of New York.

(i)   Waiver of Jury Trial. To the extent permitted by applicable law, each
      party irrevocably waives any and all right to trial by jury in any legal
      proceeding in connection with this Agreement, any Credit Support
      Document to which it is a party, or any Transaction.

(j)   Netting of Payments. Section 2(c)(ii) of this Agreement will apply.

(k)   "Affiliate" has its meaning as defined in Section 14 of this Agreement.

Part 5.  Other Provisions

(a)   ISDA Publications.

      (i)   2000 ISDA Definitions. This Agreement and each Transaction are
            subject to the 2000 ISDA Definitions (including its Annex)
            published by the International Swaps and Derivatives Association,
            Inc. (together, the "2000 ISDA Definitions") and will be governed
            by the provisions of the 2000 ISDA Definitions. The provisions of
            the 2000 ISDA Definitions are incorporated by reference in, and
            shall form part of, this Agreement and each Confirmation. Any
            reference to a "Swap Transaction" in the 2000 ISDA Definitions is
            deemed to be a reference to a "Transaction" for purposes of this
            Agreement or any Confirmation, and any reference to a
            "Transaction" in this

                                    D-2-10
<PAGE>

            Agreement or any Confirmation is deemed to be a reference to a
            "Swap Transaction" for purposes of the 2000 ISDA Definitions. The
            provisions of this Agreement (exclusive of the 2000 ISDA
            Definitions) shall prevail in the event of any conflict between
            such provisions and the 2000 ISDA Definitions.

(b)   Additional Representations. Section 3 is amended by adding the following
      Sections 3(g), (h), (i) and (j):

      "(g) Non-Reliance. For any Relevant Agreement: (i) it acts as principal
      and not as agent; (ii) it acknowledges that the other party acts only at
      arm's length and is not its agent, broker, advisor or fiduciary in any
      respect, and any agency, brokerage, advisory or fiduciary services that
      the other party (or any of its affiliates) may otherwise provide to the
      party (or to any of its affiliates) excludes the Relevant Agreement;
      (iii) with respect to Party A, it understands the Relevant Agreement and
      those risks, has determined they are appropriate for it, and willingly
      assumes those risks, and with respect to Party B, it has been directed
      to execute the Relevant Agreement and it understands the Relevant
      Agreement and those risks and willingly assumes those risks; (iv) it has
      not relied and will not be relying upon any evaluation or advice
      (including any recommendation, opinion, or representation) from the
      other party, or the representatives or advisors of the other party
      (except representations expressly made in the Relevant Agreement or an
      opinion of counsel required thereunder); and (vi) if a party is acting
      as a Calculation Agent or Valuation Agent, it does so not as the other
      party's agent or fiduciary, but on an arm's length basis for the purpose
      of performing an administrative function in good faith.

      "Relevant Agreement" means this Agreement, each Transaction, each
      Confirmation, any Credit Support Document, and any agreement (including
      any amendment, modification, transfer or early termination) between the
      parties relating thereto or to any Transaction.

      (h) Eligibility. It is an "eligible contract participant" within the
      meaning of the Commodity Exchange Act (as amended by the Commodity
      Futures Modernization Act of 2000).

      (i) FDIC Requirements. If it is a bank subject to the requirements of 12
      U.S.C. ss. 1823(e), its execution, delivery and performance of this
      Agreement (including the Credit Support Annex and each Confirmation)
      have been approved by its board of directors or its loan committee, such
      approval is reflected in the minutes of said board of directors or loan
      committee, and this Agreement (including the Credit Support Annex and
      each Confirmation) will be maintained as one of its official records
      continuously from the time of its execution (or in the case of any
      Confirmation, continuously until such time as the relevant Transaction
      matures and the obligations therefor are satisfied in full).

      (j) ERISA. It is not (i) an employee benefit plan as defined in Section
      3(3) of the Employee Retirement Income Security Act of 1974, as amended
      ("ERISA") or a plan as defined in Section 4975(e) of the Internal
      Revenue Code of 1986, as amended (the "Code"), subject to Title I of
      ERISA or Section 4975 of the Code, or a plan as so defined but which is
      not subject to Title I of ERISA or Section 4975 of the Code (each, an
      "ERISA Plan"), (ii) a person or

                                    D-2-11
<PAGE>

      entity acting on behalf of an ERISA Plan, or (iii) a person or entity
      the assets of which constitute assets of an ERISA Plan.

(c)   Recorded Conversations. Each party and any of its Affiliates may
      electronically record any of its telephone conversations with the other
      party or with any of the other party's Affiliates in connection with
      this Agreement or any Transaction, and any such recordings may be
      submitted in evidence in any proceeding to establish any matters
      pertinent to this Agreement or any Transaction.

(d)   Confirmation Procedures. Upon receipt thereof, Party B shall examine the
      terms of each Confirmation sent by Party A, and unless Party B objects
      to the terms within three New York business days after receipt of that
      Confirmation, those terms shall be deemed accepted and correct absent
      manifest error, in which case that Confirmation will be sufficient to
      form a binding supplement to this Agreement notwithstanding Section
      9(e)(ii) of this Agreement.

Part 6.  Additional Terms Relating to the Trust Agreement

(a)   Permitted Transfers.

      (i)   Notwithstanding Section 7 of this Agreement, Party A may make a
            Permitted Transfer without the prior written consent of Party B,
            and at Party A's own cost and expense, if either of the following
            events occurs:

            (A)   the unsecured and unsubordinated debt obligations of Party A
                  are rated below the Hedge Counterparty Required Rating or
                  the Hedge Counterparty Collateral Threshold Rating by S&P at
                  the time of the transfer;

            (B)   any Tax Event or Tax Event Upon Merger exists with respect
                  to Party A at the time of the transfer.

      (ii)  "Permitted Transfer" means a transfer, in whole but not in part,
            of all of Party A's rights and obligations under this Agreement
            and which meets all of the following requirements:

            (A)   the transferee is a "Qualified Hedge Party " (as defined in
                  the Trust Agreement) or a recognized dealer in interest rate
                  swaps organized under the laws of the United States of
                  America or a jurisdiction located in the United States of
                  America (or another jurisdiction reasonably acceptable to
                  Party B and the Trustee under the Trust Agreement) that, at
                  the time of the transfer, maintains (or its proposed
                  guarantor maintains) the Hedge Counterparty Required Rating
                  from S&P on its unsecured and unsubordinated debt, deposit
                  or letter of credit obligations;

            (B)   S&P confirms in writing that such transfer will not result
                  in a reduction or withdrawal of its then current rating of
                  the Certificates under the Trust Agreement with respect to
                  which it has previously issued a rating;

                                    D-2-12
<PAGE>

            (C)   neither an Event of Default with respect to the transferee
                  nor a Termination Event would exist immediately after that
                  transfer;

            (D)   the transferee executes and delivers a written agreement
                  reasonably satisfactory to Party B and the Trustee under the
                  Trust Agreement in which the transferee, among other things,
                  legally and effectively accepts all the rights and assumes
                  all the obligations of Party A under this Agreement; and

            (E)   such transfer otherwise complies with the terms of the Trust
                  Agreement.

(b)   Transfer. No Party to this Agreement may transfer its obligations under
      this Agreement pursuant to Sections 6(b)(ii) or 7(a) of this Agreement
      except upon written confirmation from S&P that, any such reduction would
      not cause S&P's then-current rating on the Certificates to be adversely
      qualified, reduced, suspended or withdrawn. Upon the occurrence of a
      Collateral Rating Downgrade Event, Party A will use its best efforts to
      make a Permitted Transfer with respect to the Affected Transactions,
      provided that Party A does not otherwise elect to avoid an Additional
      Termination Event under Part 1(i)(i)(B) of this Scheduled by either (i)
      amending the Credit Support Annex with Party B, or (ii) providing
      Alternative Credit Support, each in accordance with the provisions
      specified in Part 1(i)(i)(B) of this Schedule; provided, however, in no
      event shall Party A's failure to make any such Permitted Transfer
      constitute an Event of Default.

(c)   Payments. All payments to Party B under this Agreement or any
      Transaction shall be made to the Certificate Account created under the
      Trust Agreement.

(d)   Set-off. Party A and Party B hereby waive any and all right of set-off
      with respect to any amounts due under this Agreement or any Transaction,
      provided that nothing herein shall be construed to waive or otherwise
      limit the netting provisions contained in Sections 2(c) and 6(e) of this
      Agreement or the setoff rights contained in any Credit Support Annex.

(e)   Trust Agreement

      (i)   Party B hereby acknowledges that Party A is a secured party under
            the Trust Agreement with respect to this Agreement and a
            third-party beneficiary under the Trust Agreement and Party B
            agrees for the benefit of Party A that neither it nor any other
            Person will take any action (whether in the form of an amendment,
            a modification, waiver, approval, consent or otherwise) which may
            have a material adverse effect with respect to the rights,
            interest or benefits granted to Party A under the Trust Agreement
            with respect to this Agreement, whether or not this Agreement is
            specifically referred to or identified therein.

      (ii)  On the date Party B executes and delivers this Agreement and on
            each date on which a Transaction is entered into, Party B hereby
            represents and warrants to Party A: that the Trust Agreement is in
            full force and effect; that Party B is not party to any separate
            agreement with any of the parties to the Trust Agreement that
            would have the effect of diminishing or impairing the rights,
            interests or benefits that have been

                                    D-2-13
<PAGE>

            granted to Party A under, and which are expressly set forth in,
            the Trust Agreement; that Party B's obligations under this
            Agreement are secured under the Trust Agreement; and that nothing
            herein violates or conflicts with any of the provisions of the
            Trust Agreement or any other documents executed in connection
            therewith.

(f)   Consent to Notice & Communications. Party B hereby consents to the
      giving to the Trustee of notice by Party A of Party A's address and
      telecopy and telephone numbers for all purposes of the Trust Agreement,
      and in addition, Party A shall also be entitled at any time to provide
      the Trustee with copies of this Agreement, including all Confirmations.
      In addition, Party A shall not be precluded from communicating with the
      Trustee or any party to, or any third party beneficiary under, the Trust
      Agreement for the purpose of exercising, enforcing or protecting any of
      Party A's rights or remedies under this Agreement or any rights,
      interests or benefits granted to Party A under the Trust Agreement.

(g)   No Bankruptcy Petition. Party A agrees that, prior to the date which is
      at least one year and one day after all Rated Indebtedness (as
      hereinafter defined) has been paid in full, it will not institute
      against, or join any other person or entity in instituting against,
      Party B any bankruptcy, reorganization, arrangement, insolvency,
      moratorium or liquidation proceedings, or other proceedings under
      federal or State bankruptcy or similar laws, provided that nothing
      herein shall preclude, or be deemed to estop, Party A from taking any
      action in any case or proceeding voluntarily filed or commenced by or on
      behalf of Party B or in any involuntary case or proceeding after it has
      commenced.

(h)   Limitation of Liability. Notwithstanding anything contained herein to
      the contrary, in executing this Agreement (including the Credit Support
      Annex and each Confirmation) on behalf of Party B, the Trustee is acting
      solely in its capacity as trustee of Party B and not in its individual
      capacity, and in no event shall the Trustee, in its individual capacity
      or as beneficial owner of Party B, have any liability for the
      representations, warranties, covenants, agreements or other obligations
      of Party B hereunder, for which recourse shall be had solely to the
      assets of Party B.

(i)   Party A Rights Solely Against Collateral. The liability of Party B to
      Party A hereunder is limited in recourse to the assets of Party B and to
      the extent that the proceeds of such assets, when applied in accordance
      with the Trust Agreement, are insufficient to meet the obligations of
      Party B hereunder in full, Party B shall have no further liability in
      respect of any such outstanding obligations and any obligations of Party
      B which remain outstanding shall be extinguished. Party A further agrees
      that it shall not take any action against the directors, shareholders,
      administrator or officers of Party B to recover any amounts due
      hereunder (absent fraud or willful misconduct by any such person). This
      clause shall survive the termination of this agreement for any reason.

Part 7.  Definitions:

      All capitalized terms used herein and not defined, shall have the
      definition ascribed to them in the Trust Agreement.

                                    D-2-14
<PAGE>

      "Credit Support Commencement Date" means the thirtieth (30th) day after
      the occurrence of the Collateral Rating Downgrade Event.

      "Depositor" means Synthetic Fixed-Income Securities, Inc.

      "Rated Indebtedness," means the Certificates issued under the Trust
      Agreement.

      "Securities Intermediary" means The Bank of New York or any successor,
      acting as Securities Intermediary pursuant to the Trust Agreement.

      "Trust Agreement" means that certain trust agreement dated February 28,
      2006 and including the related series supplement dated February 28, 2006
      between Synthetic Fixed-Income Securities, Inc. and The Bank of New
      York, as trustee, pursuant to which Party B was formed.

      "Trustee" means The Bank of New York or any successor, acting as Trustee
      pursuant to the Trust Agreement.

                                    D-2-15
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Schedule by their duly
authorized signatories as of the date hereof.

WACHOVIA BANK, NATIONAL ASSOCIATION

By: /s/ Bruce Young
    ----------------------------------
     Name:  Bruce Young
     Title:

STRATS(SM) TRUST FOR PROCTER & GAMBLE SECURITIES, SERIES 2006-1

By:  The Bank of New York, as Trustee

By:   /s/ Kevin Pennant
    ----------------------------------
Name:  Kevin Pennant
Title:

                                    D-2-16
<PAGE>

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

                             CREDIT SUPPORT ANNEX
                            to the Schedule to the
                             ISDA MASTER AGREEMENT
                         dated as of February 28, 2006
                                    between
                WACHOVIA BANK, NATIONAL ASSOCIATION ("Party A")
                                      and
                STRATS(SM) TRUST FOR PROCTER & GAMBLE SECURITIES,
                                 SERIES 2006-1

                                  ("Party B")

This Annex supplements, forms part of, and is subject to, the ISDA Master
Agreement referred to above (this "Agreement"), is part of its Schedule and is
a Credit Support Document under this Agreement with respect to Party A.

Accordingly, the parties agree as follows:

Paragraphs 1 - 12.  Incorporation

Paragraphs 1 through 12 inclusive of the ISDA Credit Support Annex (Bilateral
Form) (ISDA Agreements Subject to New York Law Only) published in 1994 by the
International Swaps and Derivatives Association, Inc. are incorporated herein
by reference and made a part hereof, except as follows:

         Paragraph 1(b) is hereby amended in its entirety to read as follows:

         "(b)     Secured Party and Pledgor. Notwithstanding anything
                  contained in this Annex to the contrary, (i) all references
                  in this Annex to the "Secured Party" and all references to
                  "other party" in Paragraphs 2, 9 and 11(b) of this Annex,
                  will be to Party B exclusively, and (iii) all references in
                  this Annex to the "Pledgor" and all references to "Each
                  party" or "a party" in Paragraphs 2, 9 and 11(b) of this
                  Annex, will be to Party A exclusively."

Paragraph 13.  Elections and Variables

(a)      Security Interest for "Obligations". The term "Obligations" as used
         in this Annex includes no obligations of Secured Party and, for
         purposes of the definition of Obligations in Paragraph 12, includes
         no additional obligations of Pledgor.

(b)      Credit Support Obligations.

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

                                    D-2-17
<PAGE>

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

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

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

         (ii) Eligible Collateral. The following items will qualify as
"Eligible Collateral":

                                    D-2-18
<PAGE>

                                                                 Valuation
                                                             Percentage (S&P):
    (A)      U.SCash:  U.S. Dollars in depositary                   100%
             account form.

    (B)      U.S.  Treasury  Securities:  negotiable  debt          98.60%
             obligations   issued  by  the  U.S.  Treasury
             Department  ("Treasuries") having a remaining
             maturity of up to and not more than 1 year.

    (C)      Treasuries  having a  remaining  maturity  of          94.10%
             greater  than  1 year  but  not  more  than 5
             years.

    (D)      Treasuries  having a  remaining  maturity  of          90.70%
             greater  than 5 years  but not  more  than 10
             years.

    (E)      Treasuries  having a  remaining  maturity  of          85.30%
             greater  than 10 years  but not more  than 20
             years.

    (F)      Treasuries having a remaining maturity of              85.30%
             greater than 20 years not more than 30 years.

                                    D-2-19
<PAGE>

         (iii)    Other Eligible Support. Not applicable.

         (iv)     Thresholds.

                  "Independent Amount" means for Pledgor:  zero.

                  "Independent Amount" means for Secured Party:  zero

                  (A)      "Threshold" means an amount equal to seven percent
                           (7%) of the Underlying Securities (as defined in
                           the Trust Agreement) held by Party B, as calculated
                           by Party A.

                  (B)      "Minimum Transfer Amount" is $50,000.00 for any
                           Delivery Amount of Pledgor, and zero for any Return
                           Amount of Secured Party.

                  (C)      Rounding: The Delivery Amount and the Return Amount
                           will be rounded down to the nearest integral
                           multiple of $10,000.

(c)      Valuation and Timing.

         (i)      "Valuation Agent" means, for purposes of Paragraphs 3,
                  4(d)(ii), 5 and 6(d), the Pledgor.

         (ii)     "Valuation Date" means, monthly on the 15th calendar day of
                  each month, commencing on March 15, 2006, or if such date is
                  not a business day, the next succeeding business day.

         (iii)    "Valuation Time" means the close of business in New York
                  City on the Local Business Day before the Valuation Date or
                  date of calculation, as applicable; provided that the
                  calculations of Value and Exposure will be made as of
                  approximately the same time on the same date.

         (iv)     "Notification Time" means 11:00 a.m., New York time, on a
                  Local Business Day.

(d) Conditions Precedent and Secured Party's Rights and Remedies. No Specified
Conditions apply.

(e)      Substitution.

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

         (ii)     Consent. The Pledgor is not required to obtain the Secured
                  Party's consent for any substitution pursuant to Paragraph
                  4(d).

                                    D-2-20
<PAGE>

(f)      Dispute Resolution.

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

         (ii)     Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the
                  Value of Posted Credit Support other than Cash will be
                  calculated based upon the mid-point between the bid and
                  offered purchase rates or prices for that Posted Credit
                  Support as reported on the Bloomberg electronic service as
                  of the Resolution Time, of if unavailable, as quoted to the
                  Valuation Agent as of the Resolution Time by a dealer in
                  that Posted Credit Support of recognized standing selected
                  in good faith by the Valuation Agent, which calculation
                  shall include any unpaid interest on that Posted Credit
                  Support.

         (iii)    Alternative. The provisions of Paragraph 5 will apply.

(g)      Holding and Using Posted Collateral.

         (i)      Eligibility to Hold Posted Collateral; Custodians. Secured
                  Party will not be entitled to hold Posted Collateral itself,
                  and instead the Secured Party will be entitled to hold
                  Posted Collateral through a Custodian pursuant to Paragraph
                  6(b), provided that (1) Posted Collateral may be held in New
                  York or an alternative jurisdiction acceptable to Party A,
                  (2) the Custodian shall at all times be a bank or trust
                  company with total assets in excess of $10 billion and
                  having a rating assigned to its unsecured and unsubordinated
                  long-term debt or deposit obligations of at least BBB+ from
                  S&P and (3) Posted Collateral may be held by the Trustee
                  (acting as trustee on behalf of the Secured Party).
                  Initially the Custodian will be The Bank of New York.

         (ii)     Use of Posted Collateral. The provisions of Paragraph 6(c)
                  will not apply to Secured Party and without prejudice to
                  Secured Party's rights under Paragraph 8 of the Credit
                  Support Annex, Secured Party will not take any action
                  specified in such Section 6(c).

(h)      Interest Amount.

         (i)      Interest Rate. The "Interest Rate" will be the rate actually
                  earned by the Custodian on the Posted Collateral as from
                  time to time in effect and the Custodian shall hold all
                  Posted Collateral in the form of Cash in Eligible
                  Investments (as defined in the Trust Agreement) at the
                  direction of the Pledgor. Custodian will provide details
                  concerning such earnings upon Party A's request.

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

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

                                    D-2-21
<PAGE>

(i) Additional Representation(s). Not applicable.

(j)      Other Eligible Support and Other Posted Support. Not applicable.

(k)      Demands and Notices. All demands, specifications and notices under
         this Annex will be made to a party as follows unless otherwise
         specified from time to time by that party for purposes of this Annex
         in a written notice given to the other party:

         To Pledgor:
         WACHOVIA BANK, NATIONAL ASSOCIATION
         201 South College Street, 6th Floor
         Charlotte, NC 28288-0601

         Attention:  Collateral Management Group

         Fax:      (704) 383-3194
         Phone:    (704) 383-9529

         To Secured Party:
         STRATS(SM) TRUST FOR PROCTOR & GAMBLE SECURITIES, SERIES 2006-1
         The Bank of New York
         101 Barclay Street
         New York, NY 10286

         Attention: Fernando Acebedo

         Fax:     (212) 815-2830
         Phone:   (212) 815-2915

(l)      Addresses for Transfers.

         (i)      For each Transfer hereunder to Pledgor, instructions will be
                  provided by Pledgor for that specific Transfer.

         (ii)     For each Transfer hereunder to Secured Party, instructions
                  will be provided by Secured Party for that specific
                  Transfer.

(m)      Miscellaneous.

         (i)      Exposure. The definition of "Exposure" in Paragraph 12 is
                  amended in its entirety to read as follows:

                  "Exposure" means for any Valuation Date or other date for
                  which Exposure is calculated, and subject to Paragraph 5 in
                  the case of a dispute, the amount calculated by Party A
                  based upon a reasonable good faith estimate of the
                  unmitigated maximum probable credit exposure that Party B
                  has to Party A with respect to all Transactions under the
                  Agreement. The calculation of Exposure shall be made in
                  substantially the

                                    D-2-22
<PAGE>

                  same manner as that used in Party A's internal risk
                  management process in respect of similar agreements.

         (ii)     Limited Applicability. Notwithstanding anything contained
                  herein or in the Agreement, to the contrary, in no event
                  shall Party A be required to post any Collateral to Party B
                  under the terms of this Credit Support Annex, and Party B
                  shall immediately return, or cause its Custodian to return,
                  to Party A any and all Posted Collateral, in the event that:
                  (x) Party A elects to provide to Party B the financial
                  information and all necessary consents to meet the
                  applicable requirements of Item 1115(b) of Regulation AB (as
                  reasonably determined by Party B and the Depositor); (y) the
                  "significance percentage" (as described in Item 1115 of
                  Regulation AB) represented by the Transactions under this
                  Agreement, and exclusive of any Posted Collateral under this
                  Credit Support Annex, is less than 10% (as reasonably
                  determined by Party B and the Depositor); or (z) Regulation
                  AB is either (i) amended or modified in such a manner as to
                  no longer required the disclosure of financial information
                  concerning Party A with respect to the Agreement, or (ii)
                  withdrawn or repealed, and no other similar rule, regulation
                  or statute that applies to Party B or the Certificates is
                  enacted or adopted which would require the disclosure of
                  financial information concerning Party A with respect to the
                  Agreement.

                                    D-2-23
<PAGE>

IN WITNESS WHEREOF the parties have executed this Credit Support Annex as of
the date hereof.

WACHOVIA BANK, NATIONAL ASSOCIATION

By: /s/ Bruce Young
    ---------------------------------------
     Name:  Bruce Young
     Title:

STRATS(SM) TRUST FOR PROCTER & GAMBLE SECURITIES, SERIES 2006-1

By:  The Bank of New York, as Trustee

By:  /s/ Kevin Pennant
    ----------------------------------------
     Name:   Kevin Pennant
     Title:

                                    D-2-24
<PAGE>
                                                                    Exhibit D-3

Date:                   February 15, 2006
To:                     STRATS SM Trust for Procter & Gamble Securities,
                        Series 2006-1 ("Counterparty")
Address:                The Bank of New York
                        101 Barclay Street
                        New York, NY 10286
Fax:                    212-815-2940
Attention:              Sir or Madam
From:                   Wachovia Bank, N.A. ("Wachovia")
Ref. No:                1357973, 1357967

Dear Sir or Madam:

This confirms the terms of the Transaction described below between
Counterparty and Wachovia. The definitions and provisions contained in the
2000 ISDA Definitions, as published by the International Swaps and Derivatives
Association, Inc., are incorporated into this Confirmation. In the event of
any inconsistency between those definitions and provisions and this
Confirmation, this Confirmation will govern. Fixed Amounts and Floating
Amounts for each applicable Payment Date hereunder will be calculated in
accordance with the ISDA Definitions, and if any Fixed Amount and Floating
Amount are due for the same Payment Date hereunder, then those amounts shall
not be payable and instead the Fixed Rate Payer shall pay the positive
difference, if any, between the Fixed Amount and the Floating Amount, and the
Floating Rate Payer shall pay the positive difference, if any, between the
Floating Amount and the Fixed Amount.

1. The terms of the particular Transaction to which the Confirmation relates
are as follows:
<TABLE>
<CAPTION>
<S>                                                   <C>

Transaction Type:                                Interest Rate Swap
Currency for Payments:                           U.S. Dollars
Notional Amount:                                 USD 33,000,000.00
Term:
     Trade Date:                                 February 15, 2006
     Effective Date:                             February 18, 2006 in respect of Floating Amounts
                                                 February 28, 2006 in respect of Fixed Amounts
     Termination Date:                           August 05, 2034 in respect of Floating Amounts
                                                 August 15, 2034 in respect of Fixed Amounts

Fixed Amounts:

     Fixed Rate Payer:                           Counterparty
     Period End Dates:                           Semi-annually on the 15th of each August and February commencing
                                                 August 15, 2006, through and including the Termination Date; No
                                                 Adjustment.
     Payment Dates:                              Semi-annually on the 15th of each August and February commencing
                                                 August 15, 2006, through and including the Termination Date
     Business Day Convention:                    Modified Following
     Business Day:                               New York
     Fixed Rate:                                 5.80%
     Fixed Rate Day Count Fraction:              30/360

Additional Fixed Amounts I:

     Fixed Amount Payer:                         Wachovia
     Fixed Amount:                               USD 3,321,800.00
     Fixed Amount
     Payment Date:                               February 28, 2006

                                    D-3-1
<PAGE>

Floating Amounts:

     Floating Rate Payer:                        Wachovia
     Period End Dates:                           Monthly on the 5th of each month commencing March 05, 2006, through
                                                 and including the Termination Date; No Adjustment.
     Payment                                     Dates: Monthly on the 15th of
                                                 each month commencing March
                                                 15, 2006, through and
                                                 including August 15, 2034.
                                                 Notwithstanding the
                                                 provisions of Section 4.9(a)
                                                 of the 2000 ISDA Definitions,
                                                 the Termination Date shall
                                                 not be a Payment Date
                                                 hereunder. The final Payment
                                                 Date shall be August 15,
                                                 2034.
     Business Day Convention:                    Modified Following
     Business Day:                               New York
     Floating Rate Option:                       USD-TBILL-H15
     Designated Maturity:                        3 Months
     Spread:                                     Plus 0.70%
     Floating Rate Day Count Fraction:           Actual/Actual
     Reset Dates:                                Weekly on Monday
     Method of Averaging:                        Unweighted Average
     Compounding:                                Inapplicable
     Rounding convention:                        5 decimal places per the ISDA Definitions.

Interest Rate Cap:

     Floating Rate Payer:                        Counterparty
     Cap Rate:                                   7.50%
     Period End Dates:                           Monthly on the 5th of each month commencing March 05, 2006, through
                                                 and including the Termination Date; No Adjustment.
     Payment                                     Dates: Monthly on the 15th of
                                                 each month commencing March
                                                 15, 2006, through and
                                                 including August 15, 2034.
                                                 Notwithstanding the
                                                 provisions of Section 4.9(a)
                                                 of the 2000 ISDA Definitions,
                                                 the Termination Date shall
                                                 not be a Payment Date
                                                 hereunder. The final Payment
                                                 Date shall be August 15,
                                                 2034.
     Business Day Convention:                    Modified Following
     Business Day:                               New York
     Floating Rate Option:                       USD-TBILL-H15
     Designated Maturity:                        3 Months
     Spread:                                     Plus 0.70%
     Floating Rate Day
     Count Fraction:                             Actual/Actual
     Reset Dates:                                Weekly on Monday
     Method of Averaging:                        Unweighted Average
     Compounding:                                Inapplicable
     Rounding Convention:                        5 decimal places per the ISDA Definitions.

2. The additional provisions of this Confirmation are as follows:

Calculation Agent: Wachovia                      Wachovia Bank, N.A.
Payment Instructions:                            CIB Group, ABA 053000219
                                                 Ref: Derivative Desk (Trade No: 1357973, 1357967)
                                                 Account #: 04659360006116
Wachovia Contacts:                               Settlement and/or Rate Resets:
                                                 1-800-249-3865
                                                 1-704-383-8429
                                     D-3-2

<PAGE>

                                                 Documentation:
                                                 Tel: (704) 383-4599
                                                 Fax: (704) 383-9139

                                                 Collateral:
                                                 Tel: (704) 383-9529
                                                 Please quote transaction reference number.
Payments to Counterparty:                        The Bank of New York
                                                 ABA #: 021000018
                                                 GLA #: 111-565
                                                 Account #: 338133 STRATS Procter & Gamble 2006-1
                                                 Phone: (212) 815-2849 Fax: (212) 815-2940
</TABLE>

Documentation

This Confirmation supplements, forms part of, and is subject to, the Master
Agreement between Wachovia and Counterparty dated as of February 28, 2006, as
amended and supplemented from time to time (the "ISDA Master Agreement"). All
provisions contained or incorporated by reference in the Master Agreement will
govern this Confirmation except as expressly modified herein.

Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing a copy of this Confirmation and returning it to us.

                                             Very truly yours,
                                             Wachovia Bank, N.A.

                                             By:/s/  Bruce Young
                                                -------------------------------
                                                Name:  Bruce Young
                                                Title:  Senior Vice President

                                                SP__

                                                Ref. No.1357973,1357967

Accepted and Confirmed as of date first
written above:
STRATS SM Trust for Procter &
Gamble Securities, Series 2006-1
By: The Bank of New York, as Trustce

By:____________________________
Name:
Title:

                                      D-3-4

<PAGE>

                                                                      EXHIBIT E

                   EVIDENCE OF INTEGRATION FOR TAX PURPOSES

          This information is retained on behalf of each Certificateholder and
is intended to comply with requirements imposed by Section 1.1275-6(e) of the
United States Treasury Regulations.

         (1) The date the qualifying debt instrument was issued or acquired
         (or is expected to be issued or acquired) by the taxpayer and the
         date the Section 1.1275-6 hedge was entered into by the taxpayer.

         The Trust acquired the qualifying debt instrument on February 28,
         2006 and entered into the Section 1.1275-6 hedge on the same date.
         Each Certificateholder simultaneously acquires its interest in the
         qualifying debt instrument and enters into the Section 1.1275-6 hedge
         on the trade date identified in the trade confirmation for the
         purchase of Certificates.

         (2) A description of the qualifying debt instrument and the Section
         1.1275-6 hedge.

         The qualifying debt instrument is $33,000,000 in aggregate principal
         amount of 5.80% Senior Notes Due 2034 issued by The Procter & Gamble
         Company. The Section 1.1275-6 hedge is a swap agreement between the
         Trust and Wachovia Bank, N.A., as evidenced by an ISDA Master
         Agreement (including a schedule thereto) dated as of February 28,
         2006 and as supplemented by a confirmation number 1357973, 1357967,
         in the form attached to this series supplement as Exhibit D.

         (3) A summary of the cash flows and accruals resulting from treating
         the qualifying debt instrument and the Section 1.1275-6 hedge as an
         integrated transaction (that is, the cash flows and accruals on the
         synthetic debt instrument).

          A single principal payment of $33,000,000 is payable on the maturity
date of August 15, 2034. Interest payments at the three-month Treasury Bill
Average plus 0.70% per annum (but no more than 7.50% per annum) (each such
interest payment, an "Interest Payment") are payable on the 15th day of each
calendar month (or if the 15th calendar day is not a business day, on the next
succeeding business day).

          For any Interest Period (as hereinafter defined), the "three-month
Treasury Bill Average" will be, with respect to any Interest Period, the
unweighted average of the USD-TBILL-H.15 rate for each Reset Date that
occurred during the Reset Period applicable to that Interest Period.

          For purposes hereof, the term "USD-TBILL-H.15 rate" shall mean the
rate for a Reset Date which appears on either the Telerate page 56 or the
Telerate page 57 opposite the three (3) month designated maturity under the
heading "INVEST RATE." If United States Treasury bills of the three (3) month
designated maturity have been auctioned on a Reset Date but such rate for such
Reset Date does not appear on either the Telerate Page 56 or the Telerate

                                      E-1
<PAGE>

Page 57, the rate for that Reset Date will be the Bond Equivalent
Yield of the rate set forth in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying such rate, for that day
in respect of the three (3) month designated maturity under the caption "U.S.
Government securities/Treasury bills/Auction high." If United States Treasury
bills of the three (3) month designated maturity have been auctioned on a
Reset Date but such rate for such Reset Date does not appear on either the
Telerate Page 56 or the Telerate page 57 and such rate is not set forth in the
H.15 Daily Update in respect of the three (3) month designated maturity under
the caption "U.S. Government securities/Treasury bills/Auction high" or
another recognized electronic source, the rate for that Reset Date will be the
Bond Equivalent Yield of the auction rate for those Treasury bills as
announced by the United States Department of the Treasury. If the United
States Treasury bills of the three (3) month designated maturity are not
auctioned during any period of seven consecutive calendar days ending on, and
including, any Friday and a Reset Date would have occurred if such Treasury
bills had been auctioned during that seven-day period, a Reset Date will be
deemed to have occurred on the day during that seven-day period on which such
Treasury bills would have been auctioned in accordance with the usual
practices of the United States Department of the Treasury, and the rate for
that Reset Date will be determined as if the parties had specified
"USD-TBILL-Secondary Market" as the applicable USD-TBILL-H.15 rate. For
purposes hereof, the terms "Bond Equivalent Yield", "H.15 Daily Update" and
"USD-TBILL-Secondary Market" shall each have the meanings set forth in the
Annex to the 2000 ISDA Definitions (June 2000 Version) as published by the
International Swaps and Derivatives Association, Inc.

          For purposes hereof, the term "USD-TBILL-H.15 rate" shall mean the
rate for a Reset Date which appears on either the Telerate page 56 or the
Telerate page 57 opposite the three (3) month designated maturity under the
heading "INVEST RATE." If United States Treasury bills of the three (3) month
designated maturity have been auctioned on a Reset Date but such rate for such
Reset Date does not appear on either the Telerate Page 56 or the Telerate Page
57, the rate for that Reset Date will be the Bond Equivalent Yield of the rate
set forth in H.15 Daily Update, or such other recognized electronic source
used for the purpose of displaying such rate, for that day in respect of the
three (3) month designated maturity under the caption "U.S. Government
securities/Treasury bills/Auction high." If United States Treasury bills of
the three (3) month designated maturity have been auctioned on a Reset Date
but such rate for such Reset Date does not appear on either the Telerate Page
56 or the Telerate page 57 and such rate is not set forth in the H.15 Daily
Update in respect of the three (3) month designated maturity under the caption
"U.S. Government securities/Treasury bills/Auction high" or another recognized
electronic source, the rate for that Reset Date will be the Bond Equivalent
Yield of the auction rate for those Treasury bills as announced by the United
States Department of the Treasury. If the United States Treasury bills of the
three (3) month designated maturity are not auctioned during any period of
seven consecutive calendar days ending on, and including, any Friday and a
Reset Date would have occurred if such Treasury bills had been auctioned
during that seven-day period, a Reset Date will be deemed to have occurred on
the day during that seven-day period on which such Treasury bills would have
been auctioned in accordance with the usual practices of the United States
Department of the Treasury, and the rate for that Reset Date will be
determined as if the parties had specified "USD-TBILL-Secondary Market" as the
applicable USD-TBILL-H.15 rate. For purposes hereof, the terms "Bond
Equivalent Yield", "H.15 Daily Update" and "USD-TBILL-Secondary Market" shall
each have the meanings set

                                      E-2
<PAGE>

forth in the Annex to the 2000 ISDA Definitions (June 2000 Version) as
published by the International Swaps and Derivatives Association, Inc.

          "Interest Period" means, with respect to the first distribution
date, the period from and including the original issue date of the
Certificates to, but excluding, March 15, 2006, and thereafter, so long as the
Swap Agreement is in effect, the period from and including the 15th day of the
preceding calendar month to, but excluding, the 15th day of the current
calendar month.

          For each Interest Period, the term "Reset Date" means each Monday
during the Reset Period applicable to that Interest Period, provided, however,
that if any such Monday is not a Business Day, then the Reset Date shall be
deemed to be the next succeeding Business Day and if pursuant to the
next-to-last sentence of the prior paragraph, a Reset Date would be deemed to
have occurred during such Reset Period on other than a Monday, then the Reset
Date shall be deemed to have been such other date. The term "Reset Period"
means, for each Interest Period, the period that starts 10 calendar days prior
to the first day of such Interest Period and ends 10 calendar days prior to
the last day of such Interest Period. "Business Day" means any other day other
than a Saturday, a Sunday or a day on which banking institutions in New York,
New York are authorized or obligated by law or executive order to be closed.

          "Telerate Page 56" and "Telerate Page 57" mean the display pages so
designated on Moneyline's Telerate Service (or such other page as may replace
that page on that service, or such other service as may be nominated as the
information vendor, for the purpose of displaying the USD-TBILL-H.15 rate).

                                     E-3

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