Document:

Exhibit 4.1

                               SERIES SUPPLEMENT

                   REPACKAGED AMERICAN GENERAL FLOATING RATE

                              TRUST CERTIFICATES,

                              SERIES 2003-1 TRUST

                                    between

                            LEHMAN ABS CORPORATION,

                                 as Depositor,

                                      and

                     U.S. BANK TRUST NATIONAL ASSOCIATION,

                                  as Trustee,

                              TRUST CERTIFICATES

                           Dated as of July 2, 2003

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                                                 Table of Contents

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Section 1. Incorporation of Standard Terms........................................................................1
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Section 2. Definitions............................................................................................2
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Section 3. Designation of Trust and Certificates..................................................................9
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Section 4. Trust Certificates.....................................................................................9
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Section 5. Distributions.........................................................................................10
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Section 6. Early Redemption of Certificates......................................................................11
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Section 7. Partial Unwind of Certificates........................................................................12
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Section 8. Trustee's Fees........................................................................................14
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Section 9. Swap Payments.........................................................................................15
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Section 10. Notices of Swap Termination Events...................................................................15
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Section 11. Miscellaneous........................................................................................15
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Section 12. Governing Law........................................................................................18
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Section 13. Counterparts.........................................................................................18
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Section 14. Termination of the Trust.............................................................................18
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Section 15. Sale of Underlying Securities........................................................................18
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Section 16. Amendments...........................................................................................18
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Section 17. Voting of Underlying Securities, Modification of Underlying Securities Indenture.....................19
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Section 18. Additional Depositor Representation..................................................................21
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SCHEDULE I     SERIES 2003-1 UNDERLYING SECURITIES SCHEDULE
EXHIBIT A      FORM OF TRUST CERTIFICATE
EXHIBIT B      FORM OF SWAP AGREEMENT

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                               SERIES SUPPLEMENT

         REPACKAGED AMERICAN GENERAL FLOATING RATE TRUST CERTIFICATES
                              SERIES 2003-1 TRUST

          SERIES SUPPLEMENT, Repackaged American General Floating Rate Trust
Certificates Series 2003-1, dated as of July 2, 2003 (the "Series
Supplement"), by and between LEHMAN ABS CORPORATION, as Depositor (the
"Depositor"), and U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee (the
"Trustee").

                             W I T N E S S E T H:

          WHEREAS, the Depositor desires to create the Trust designated herein
(the "Trust") by executing and delivering this Series Supplement, which shall
incorporate the terms of the Standard Terms for Trust Agreements, dated as of
January 16, 2001 (the "Standard Terms" and, together with this Series
Supplement, the "Trust Agreement"), by and between the Depositor and the
Trustee, as modified by this Series Supplement;

          WHEREAS, the Depositor desires to deposit into the Trust the
Underlying Securities set forth on Schedule I attached hereto (the "Underlying
Securities Schedule") the general terms of which are described in the
Prospectus Supplement under the heading "Description of the Underlying
Securities";

          WHEREAS, the Depositor desires that the Trust enter into a 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 the Certificateholders;

          WHEREAS, in connection with the creation of the Trust, the deposit
therein of the Underlying Securities and the entering into the Swap Agreement
thereby, it is desired to provide for the issuance of trust certificates
evidencing undivided interests in the Trust; and

          WHEREAS, the Trustee has joined in the execution of the Standard
Terms and this Series Supplement to evidence the acceptance by the Trustee of
the Trust.

          NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants expressed herein, it is hereby agreed by and between the
Depositor and the Trustee as follows:

     Section 1. Incorporation of Standard Terms. Except as otherwise provided
herein, all of the provisions of the Standard Terms are hereby incorporated
herein by reference in their entirety, and this Series Supplement and the
Standard Terms shall form a single agreement between the parties. In the event
of any inconsistency between the provisions of this Series Supplement and the
provisions of the Standard Terms, the provisions of this Series Supplement
will control with respect to the Repackaged American General Floating Rate
Trust Certificates, Series 2003-1 Certificates and the transactions described
herein.

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     Section 2. Definitions.

     (a) Except as otherwise specified herein or as the context may otherwise
require, the following terms shall have the respective meanings set forth
below for all purposes under this Series Supplement. (Section 2(b) below sets
forth terms listed in the Standard Terms which are not applicable to this
Series.) Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Standard Terms.

          "Affiliated Owner" shall have the meaning set forth in Section 7(a).

          "Available Funds" shall mean, for any Distribution Date, Available
Interest Funds and Available Principal Funds for such Distribution Date.

          "Available Interest Funds" shall mean, for any Distribution Date,
the sum of (i) all amounts received from the Swap Counterparty pursuant to the
Swap Agreement during the preceding Interest Accrual Period and (ii) any
amounts representing interest on the Underlying Securities that are actually
received by the Trust pursuant to the Underlying Securities Indenture on such
Distribution Date and not required to be paid to the Swap Counterparty
pursuant to the Swap Agreement.

          "Available Principal Funds" shall mean all amounts received from the
Underlying Securities Issuer or the Underlying Securities Guarantor with
respect to principal of the Underlying Securities on the Final Scheduled
Distribution Date or any other date.

          "Business Day" shall mean any 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.

          "Calculation Agent" shall mean Lehman Brothers Derivative Products
Inc.

          "Certificate Account" shall have the meaning specified in the
Standard Terms.

          "Certificates" shall mean the Certificates, in the form attached
hereto as Exhibit A, to be issued by the Trust representing a proportionate
undivided beneficial ownership interest in certain distributions to be made by
the Trust and having the characteristics described herein and in the
Certificates.

          "Closing Date" shall mean July 2, 2003.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Corporate Trust Office" shall mean the office of U.S. Bank Trust
National Association located at 100 Wall Street, New York, New York 10005.

          "Currency" shall mean United States Dollars.

          "Depository" shall mean The Depository Trust Company, its nominees
and their respective successors.

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          "Discontinuation Date" shall mean the date determined by the
Depositor within a reasonable time following the Underlying Securities
Guarantor's either (x) having stated in writing that it intends permanently to
cease filing periodic reports required under the Exchange Act or (y) having
failed to file all required periodic reports for one full year.

          "Distribution Date" shall mean January 15th, April 15th, July 15th
and October 15th of each year (or if such date is not a Business Day, the next
succeeding Business Day), commencing on July 15, 2003, and ending on the
earlier of the Final Scheduled Distribution Date and any date on which all
Underlying Securities are redeemed pursuant to the Underlying Securities
Indenture or prepaid or liquidated in whole for any reason other than at their
maturity.

          "Early Termination Date" shall mean the date so designated as such
in accordance with the terms of the Swap Agreement.

          "Early Termination Payment" shall mean, with respect to any Early
Termination Date, the amount payable by the Swap Counterparty or the Trust, as
applicable, on such Early Termination Date pursuant to the Swap Agreement.

          "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

          "Exchange Act" shall mean the United States Securities and Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder.

          "Exercise Date" shall mean the date on which an Affiliated Owner
delivers a Partial Unwind Agreement to the Trustee, accompanied by a
certificate of the Marketing Agent pursuant to Section 7(a) hereof.

          "Final Scheduled Distribution Date" shall mean July 15, 2025, or, if
such day is not a Business Day, the next succeeding Business Day.

          "Interest Accrual Period" shall mean for any Distribution Date, the
period from and including the preceding Distribution Date (or in the case of
the first Interest Accrual Period, from and including July 2, 2003) to but
excluding the current Distribution Date.

          "Interest Distribution Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the outstanding
Certificate Principal Amount, (ii) the applicable Interest Rate for the
preceding Interest Accrual Period and (iii) the actual number of days in such
Interest Accrual Period divided by 360, as determined in accordance with the
terms of the Swap Agreement.

          "Interest Rate" shall mean, 1.42054% per annum until the
Distribution Date in July 2003 and, thereafter, for each Interest Accrual
Period, Three-Month LIBOR plus 0.30%.

          "LIBOR Determination Date" shall mean for each Interest Accrual
Period, the second London Banking Day preceding the commencement of such
Interest Accrual Period.

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          "London Banking Day" shall mean, any day on which commercial banks
are open for business (including dealings in foreign exchange and foreign
currency deposits) in London.

          "Liquidation Price" shall mean the price at which the Trustee sells
the Underlying Securities.

          "Liquidation Proceeds" shall mean (i) with respect to a liquidation
of the Underlying Securities in accordance with the Sale Procedures, the net
proceeds received from the sale by the Marketing Agent, in accordance with the
Sale Procedures, of the entire principal amount of the Underlying Securities
or (ii) with respect to an Underlying Acceleration Termination, the payments
received by the Trustee in respect of the related acceleration of the
Underlying Securities.

          "Marketing Agent" shall mean Lehman Brothers Inc.

          "Maturity Date" shall have the meaning specified in Schedule I
hereto.

          "Moody's" shall mean Moody's Investors Service, Inc.

          "Optional Termination Amount" shall mean, in connection with the
execution of a Partial Unwind Agreement, the principal amount of Underlying
Securities corresponding to the principal amount of an Affiliated Owner's
Certificates to be redeemed pursuant to such Partial Unwind Agreement.

          "Ordinary Expenses" shall mean the Trustee's ordinary expenses and
overhead in connection with its services as Trustee, including the items
referred to in the definition of Ordinary Expenses in the Standard Terms.

          "Partial Unwind Agreement" means an agreement between an Affiliated
Owner and the Swap Counterparty, and subject to countersignature by the
Trustee on behalf of the Trust.

          "Partial Unwind Amount" means the dollar amount (which shall, except
in the case of the Depositor or any Affiliate thereof, be at least $1,000,000)
specified in the related Partial Unwind Agreement, which dollar amount
corresponds to the principal amount of the Certificates to be delivered to the
Trustee and the principal amount of Underlying Securities to be delivered or
sold by the Trustee, in each case in accordance with Section 7(a).

          "Partial Unwind Date" has the meaning specified in Section 7(a).

          "Plan" means (a) an employee benefit plan (as defined in Section
3(3) of ERISA), (b) a plan described in Section 4975(e)(1) of the Code or (c)
any entity whose underlying assets are treated as assets of any such plan by
reason of such plan's investment in the entity.

          "Prepaid Ordinary Expenses" shall be zero for this Series.

          "Pro Rata Share" shall mean, with respect to any Certificateholder,
a fraction the numerator of which equals the Outstanding principal amount of
the Certificates owned by such

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Certificateholder and the denominator of which equals the aggregate
Outstanding principal amount of the Certificates.

          "Prospectus Supplement" shall mean the Prospectus Supplement, dated
June 20, 2003, relating to the Certificates.

          "Rating Agency" shall mean Moody's and S&P.

          "Record Date" shall mean, with respect to each Distribution Date,
the day immediately preceding the related Distribution Date.

          "Required Percentage-Amendment" shall be 66-2/3% of the aggregate
Voting Rights.

          "Required Percentage-Direction of Trustee" shall be 66-2/3% of the
aggregate Voting Rights.

          "Required Percentage-Remedies" shall be 66-2/3% of the aggregate
Voting Rights.

          "Required Percentage-Removal" shall be 66-2/3% of the aggregate
Voting Rights.

          "Required Rating" shall mean, in the case of Moody's, the rating
assigned to the Underlying Securities by Moody's as of the Closing Date, and,
in the case of S&P, the rating assigned to the Underlying Securities by S&P as
of the Closing Date.

          "S&P" shall mean Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc.

          "Sale Procedure" shall mean the process by which the Marketing
Agent, on behalf of the Trust, will sell the Underlying Securities to the
solicited bidder (which bidders will be determined by the Marketing Agent in
its sole and absolute discretion and which bidders may include Lehman Brothers
Inc. or any of its affiliates but in any case shall include at least two
bidders which are not affiliated with Lehman Brothers Inc.; provided, however,
that neither Lehman Brothers Inc. or any of its affiliates is obligated to
bid, and that such bidders need not be limited to recognized broker dealers;
and provided further that if Lehman Brothers Inc. or any of its affiliates are
bidders, any bid made by them shall not be greater than the fair value of the
Underlying Securities) that provides the highest firm bid for the Underlying
Securities. In the sole judgement of the Marketing Agent, bids may be
evaluated on the basis of bids for all or a portion of the Underlying
Securities being sold or any other basis selected in a commercially reasonable
manner by the Marketing Agent.

          "SEC Reporting Failure" shall mean the date determined by the
Depositor within a reasonable time following the Underlying Securities
Guarantor's either (x) having stated in writing that it intends permanently to
cease filing periodic reports required under the Exchange Act or (y) having
failed to file all required periodic reports for one full year.

          "Securities Act" shall mean the United States Securities Act of
1933, as amended.

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          "Securities Intermediary" shall have the meaning set forth in
Section 18 hereof.

          "Series" shall mean Repackaged American General Floating Rate Trust
Certificates, Series 2003-1.

          "Special Redemption Date" shall mean the tenth Business Day
following the Discontinuation Date.

          "Special Termination Event" shall mean a Swap Termination Event
caused by the occurrence of (i) an event specified in Sections 5(a)(i) of the
Swap Agreement, (ii) an event specified in Section 5(a)(vii) of the Swap
Agreement or (iii) a Trigger Event.

          "Swap Agreement" shall mean the ISDA Master Agreement dated as of
the Closing Date, between the Trust and the Swap Counterparty (including the
Schedule thereto) as supplemented by the Confirmation dated July 2, 2003, in
the form attached hereto as Exhibit B.

          "Swap Counterparty" shall mean Lehman Brothers Derivative Products
Inc, or any permitted successor or assign thereto.

          "Swap Termination Event" shall mean the occurrence of any event that
would constitute an "Event of Default" or "Termination Event" under the Swap
Agreement.

          "Swap Redemption Date" shall mean the fifth Business Day following
any Early Termination Date.

          "Telerate Page 3750" shall mean the display on the Dow Jones
Telerate Service on page 3750 (or any other page as may replace such page on
that service for the purpose of displaying LIBOR).

          "Three-Month LIBOR" shall mean, with respect to any LIBOR
Determination Date, the London interbank offered rate for three-month (such
period being referred to as the "Index Maturity") United States dollar
deposits, commencing on the second London Banking Day immediately following
such LIBOR Determination Date, which appears on Telerate Page 3750 as of 11:00
A.M., London time, on such LIBOR Determination Date. If Telerate Page 3750 is
unavailable at such time, LIBOR for the appropriate Index Maturity will be
determined at approximately 11:00 A.M., London time, on such LIBOR
Determination Date on the basis of the rate at which LIBOR having such Index
Maturity is offered by four major banks selected by the Calculation Agent in
the London interbank market commencing on the second London Banking Day
immediately following such LIBOR Determination Date. The Calculation Agent
will request the principal London office of each of such banks to provide a
quotation of its rate. If at least two such quotations are provided, LIBOR for
such Index Maturity will be the arithmetic mean of such quotations. If fewer
than two quotations are provided, LIBOR for a given Index Maturity for such
LIBOR Determination Date will be the arithmetic mean of LIBOR quoted at
approximately 11:00 A.M., New York City time, on such LIBOR Determination Date
by three major banks in New York City selected by the Calculation Agent for
LIBOR having such Index Maturity, commencing on the second London Banking Day
immediately following such LIBOR Determination Date; provided, however, that
if the banks selected as aforesaid by

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the Calculation Agent are not quoting as mentioned in this sentence, LIBOR for
such Index Maturity will be LIBOR for such Index Maturity in effect on such
LIBOR Determination Date.

          "Trigger Event" shall have the meaning specified in the Swap
Agreement.

          "Trustee Fee" shall mean the amount paid to the Trustee by the
Depositor on the Closing Date.

          "Trust Property" shall mean the Underlying Securities described on
Schedule I hereto and the Swap Agreement and the Certificate Account; each
subject to the obligations of the Trust under the Swap Agreement.

          "Underlying Acceleration Termination" shall have the meaning
specified in the Swap Agreement.

          "Underlying Securities" shall mean $10,000,000 aggregate principal
amount of 7 1/2% Notes, issued by the Underlying Securities Issuer, as set
forth in Schedule I attached hereto.

          "Underlying Securities Guarantor" shall mean American International
Group, Inc.

          "Underlying Securities Indenture" shall mean the indenture dated May
15, 1995, between the Underlying Securities Issuer and the Underlying
Securities Trustee, pursuant to which the Underlying Securities were issued.

          "Underlying Securities Issuer" shall mean American General
Corporation.

          "Underlying Securities Trustee" shall mean Chemical Bank or any
successor thereto acting as indenture trustee pursuant to the Underlying
Securities Indenture.

          "Underwriter" shall mean Lehman Brothers Inc.

          "Universal Business Day" shall mean a day on which commercial banks
are open for business (including dealings in foreign exchange and foreign
currency deposits) in Frankfurt, London, New York and Tokyo.

          "Voting Rights" shall be allocated among all Certificateholders in
proportion to the then unpaid Certificate Principal Amounts of their
respective Certificates.

     (b) The terms listed below are not applicable to this Series.

               "Accounting Date"

               "Administrative Fees"

               "Advance"

               "Allowable Expense Amounts"

               "Basic Documents"

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               "Call Premium Percentage"

               "Credit Support"

               "Credit Support Instrument"

               "Credit Support Provider"

               "Cut-off Date"

               "Eligible Expense"

               "Eligible Investment"

               "Exchange Rate Agent"

               "Fixed Pass-Through Rate"

               "Guaranteed Investment Contract"

               "Letter of Credit"

               "Limited Guarantor"

               "Limited Guaranty"

               "Minimum Wire Denomination"

               "Optional Exchange Dates"

               "Pass-Through Rate"

               "Place of Distribution"

               "Purchase Price"

               "Required Premium"

               "Required Principal"

               "Requisite Reserve Amount"

               "Retained Interest"

               "Sub-Administration Account"

               "Sub-Administration Agreement"

               "Sub-Administration Agent"

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<PAGE>

               "Surety Bond"

               "Swap Guarantee"

               "Swap Guarantor"

     Section 3. Designation of Trust and Certificates. The Trust created
hereby shall be known as the "Repackaged American General Floating Rate Trust
Certificates, Series 2003-1 Trust." The Certificates evidencing certain
undivided ownership interests therein shall be known as "Repackaged American
General Floating Rate Trust Certificates, Series 2003-1."

     (a) The Certificates shall be held through the Depository in book-entry
form and shall be substantially in the form attached hereto as Exhibit A. The
Certificates shall be issued in denominations of $1,000. Except as provided in
the Standard Terms, the Trust shall not issue additional Certificates or incur
any indebtedness.

     (b) The Certificates have an initial aggregate certificate principal
amount (the "Certificate Principal Amount") of $10,000,000.

     (c) The holders of the Certificates will be entitled to receive on each
Distribution Date the Interest Distribution Amount.

     (d) The Depositor may sell to the Trustee additional Underlying
Securities on any date hereafter upon at least 3 Business Days' notice to the
Trustee (or such shorter period as shall be mutually satisfactory to the
Depositor and the Trustee) and upon (i) satisfaction of the Rating Agency
Condition, (ii) prior consent of the Swap Counterparty and (iii) delivery of
an Opinion of Counsel to the effect that the sale of such additional
Underlying Securities will not cause the Trust to be taxed as an association
or publicly traded partnership taxable as a corporation for federal income tax
purposes. Each condition to be satisfied with respect to a sale of Underlying
Securities on or prior to the Closing Date shall be satisfied with respect to
a sale of additional Underlying Securities no later than the date of sale
thereof, each representation and warranty set forth in the Standard Terms to
be made on the Closing Date shall be made on such date of sale, and from and
after such date of sale, all Underlying Securities held by the Trustee shall
be held on the same terms and conditions. Upon such sale to the Trustee, the
Trustee shall deposit such additional Underlying Securities in the Certificate
Account, and shall authenticate and deliver to the Depositor, on its order,
Certificates in a Certificate Principal Balance equal to the principal amount
of such additional Underlying Securities. Any such additional Certificates
authenticated and delivered shall have the same terms and rank pari passu with
the Certificates previously issued in accordance with this Series Supplement.

     Section 4. Trust Certificates. The Trustee hereby acknowledges receipt,
on or prior to the Closing Date, of:

     (a) the Underlying Securities set forth on Schedule I hereto;

     (b) the duly authorized and executed Swap Agreement; and

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     (c) all documents required to be delivered to the Trustee pursuant to
Section 2.01 of the Standard Terms.

     Section 5. Distributions.

     (a) Except as otherwise provided in Section 3(c) and Section 6, on each
applicable Distribution Date, the Trustee shall apply Available Funds in the
Certificate Account as follows:

          (i) The Trustee will pay from Available Interest Funds:

               (1) first, to the Trustee, as reimbursement for any
          Extraordinary Trust Expenses incurred by the Trustee in accordance
          with Section 8(b) below and approved by 100% of the
          Certificateholders; and

               (2) second, to the holders of the Certificates, interest
          accrued and unpaid, pro rata in proportion to their entitlements
          thereto;

          provided, however, that if the Trustee has not received any amounts
of Available Interest Funds on or prior to the related Distribution Date, such
amounts shall be applied in accordance with this Section 5(a) promptly upon
receipt of such amounts.

          (ii) The Trustee will pay Available Principal Funds, first, to the
     Trustee, as reimbursement for any Extraordinary Trust Expenses incurred
     by the Trustee in accordance with Section 8(b) below and approved by 100%
     of the Certificateholders; and second, to the Certificateholders, pro
     rata, from Available Principal Funds, the then outstanding principal on
     the Certificates.

          (iii) any Available Funds remaining in the Certificate Account after
     the payments set forth in clauses 5(a)(i) and 5(a)(ii) above shall be
     paid first, to the Trustee, as reasonable compensation for services
     rendered to the Depositor, up to $1,000 and, thereafter, to the
     Certificateholders, pro rata.

Any portion of the Available Funds (i) that does not constitute principal of,
or interest on, the Underlying Securities, (ii) that is not received in
connection with a redemption, prepayment or liquidation of the Underlying
Securities and (iii) for which allocation by the Trustee is not otherwise
contemplated by this Series Supplement, shall be remitted by the Trustee to
the Depositor.

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     Section 6. Early Redemption of Certificates.

     (a) If a Special Termination Event occurs, the Trustee shall, no later
than one Business Day following the applicable Early Termination Date, notify
the Certificateholders of the occurrence of such Special Termination Event.
Subject to the next succeeding sentence, the Trustee shall, on the applicable
Swap Redemption Date, distribute to each Certificateholder its Pro Rata Share
of (i) the Underlying Securities in-kind and (ii) any Early Termination
Payment received by the Trust from the Swap Counterparty in connection with
such Special Termination Event. Notwithstanding the preceding sentence, the
Certificateholders may elect, by affirmative vote of 100% of the Certificates
outstanding, to notify the Trustee no later than three Business Days prior to
the applicable Swap Redemption Date, to direct the Marketing Agent to sell, in
accordance with the Sale Procedures, the entire principal balance of the
Underlying Securities held by the Trust for settlement on the Early
Termination Date and distribute to each Certificateholder on such date its Pro
Rata Share of the sum of (i) the Liquidation Proceeds and (ii) any Early
Termination Payment received by the Trust from the Swap Counterparty in
connection with such Special Termination Event.

     (b) If a Swap Termination Event occurs that is not a Special Termination
Event, promptly following the applicable Early Termination Date, the Trustee
will direct the Marketing Agent to sell, in accordance with the Sale
Procedures, the entire principal balance of the Underlying Securities held by
the Trust for settlement on the Early Termination Date and distribute to each
Certificateholder on such date the greater of (a) zero and (b) its Pro Rata
Share of (i) the Liquidation Proceeds plus (ii) any Early Termination Payment
received by the Trust from the Swap Counterparty in connection with such
Special Termination Event, minus (iii) any Early Termination Payment paid by
the Trust to the Swap Counterparty in connection with such Special Termination
Event.

     (c) Notwithstanding Section 3.12 of the Standard Terms, upon the
occurrence of an SEC Reporting Failure, the Depositor shall within a
reasonable time after the Discontinuation Date, (i) subject to the second
succeeding sentence and subject to the consent of the Swap Counterparty in
accordance with the terms of the Swap Agreement, instruct the Trustee to (A)
distribute to each Certificateholder, on the Special Redemption Date, its Pro
Rata Share of the Underlying Securities and (B) assign to each
Certificateholder its Pro Rata Share of all rights and obligations of the
Trust in and to the Swap Agreement. If the Swap Counterparty does not consent
to the assignment of the Swap Agreement to the Certificateholders, and subject
to the next succeeding sentence, the Trustee will direct the Marketing Agent
to sell, in accordance with the Sale Procedures, the entire principal balance
of the Underlying Securities held by the Trust for settlement on the Early
Termination Date and distribute to each Certificateholder on such date the
greater of (a) zero and (b) its Pro Rata Share of (i) the Liquidation Proceeds
plus (ii) any Early Termination Payment received by the Trust from the Swap
Counterparty in connection with the related Swap Termination Event, minus
(iii) any Early Termination Payment paid by the Trust to the Swap Counterparty
in connection with such Swap Termination Event. Notwithstanding the foregoing
subject to the consent of the Swap Counterparty in accordance with the terms
of the Swap Agreement, the Certificateholders may elect, by affirmative vote
of 100% of the Certificates outstanding, to notify the Trustee no later than
three Business Days prior to the applicable Special Redemption Date to take
another action (which proposed action must be reasonably acceptable to the
Trustee) with respect to the Underlying Securities and the

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Swap Agreement as may be agreed upon by the Certificateholders and the Swap
Counterparty, including, without limitation, transferring the Underlying
Securities and the Swap Agreement to a new special purpose entity and to
receive, instead of the Underlying Securities and the Swap Agreement,
interests in such special purpose entity.

     (d) If the Trustee receives non-cash property in respect of the
Underlying Securities as a result of a payment default on the Underlying
Securities (including from the sale thereof), the Trustee will promptly give
notice to the Depository, or for any Certificates which are not then held by
DTC or any other depository, directly to the registered holders of the
Certificates then outstanding and unpaid. Such notice shall state that the
Trustee shall and the Trustee shall, not later than 30 days after the receipt
of such property, allocate and distribute such property to the Holders of
Certificates then outstanding and unpaid (after deducting the costs incurred
in connection therewith) their pro rata portion of such property. Property
other than cash will be liquidated by the Trustee, and the proceeds thereof
distributed in cash, only to the extent necessary to avoid distribution of
fractional securities to Certificateholders. In-kind distribution of such
property to Certificateholders, based on the market value of such property as
of the date of distribution to Certificateholders, will be deemed to reduce
the Certificate Principal Amount on a dollar-for-dollar basis.

     Section 7. Partial Unwind of Certificates.

     (a) If the beneficial owner of any Certificate is Lehman Brothers Inc. or
any affiliate thereof (an "Affiliated Owner"), and such Affiliated Owner has
been a registered Certificateholder for at least six calendar months, and
subject to agreement by the two parties as to the termination payment owed
under the Swap Agreement, the Swap Counterparty shall enter into a Partial
Unwind Agreement with such Affiliated Owner, at its request. In the event an
Affiliated Owner and the Swap Counterparty enter into and deliver to the
Trustee a Partial Unwind Agreement, specifying a date (the "Partial Unwind
Date"), which is at least five Business Days thereafter, on which the
Affiliated Owner and the Swap Counterparty propose that the actions referred
to in the fourth succeeding sentence would occur, the Trustee may, in its sole
discretion (but shall not be obligated to) countersign such Partial Unwind
Agreement; provided, however, that (i) no Affiliated Owner will be permitted
to enter into a Partial Unwind Agreement prior to the one-year anniversary of
the Closing Date, (ii) no Affiliated Owner will be permitted to enter into a
Partial Unwind Agreement more frequently than once in any six month calendar
period and (iii) each Partial Unwind Agreement shall be in a minimum amount of
$1,000,000. Any such Partial Unwind Agreement shall specify a Partial Unwind
Date which is on or before the next succeeding Distribution Date (so that no
Distribution Date falls between the date such Partial Unwind Agreement (as
executed by an Affiliated Owner and the Swap Counterparty) is delivered to the
Trustee and a Distribution Date). In addition, in determining whether to
countersign a Partial Unwind Agreement, the Trustee may rely on a
certification of the Marketing Agent, which the Marketing Agent shall provide,
as to whether entering into and giving effect to such Partial Unwind Agreement
(a) will expose the Trust to any liability or expense or (b) have an adverse
impact on or consequence for the Trust including (x) the treatment of the
Certificates and the Trust for Federal income tax purposes (as specified in
the Trust Agreement), or (y) under the Investment Company Act, ERISA or the
Code or (c) would adversely affect in any material respect the interests of
any Certificateholder (other than the applicable Affiliated Owner). The
Trustee shall also be entitled to receive an Opinion of

                                      12

<PAGE>

Counsel with respect to the foregoing legal matters and the cost of such
Opinion of Counsel shall be borne by the applicable Affiliated Owner. In order
to give effect to the provisions of a Partial Unwind Agreement which the
Trustee has elected to countersign, the Trustee shall, effective on such
Partial Unwind Date and upon confirmation to the Trustee from the Swap
Counterparty that such Affiliated Owner has paid to the Swap Counterparty any
breakage or termination payment due under the Swap Agreement in connection
with the partial termination provided for in the Partial Unwind Agreement,
deliver to such Affiliated Owner, against tender by such Affiliated Owner or
its nominee of a Certificate having a principal balance equal to the Partial
Unwind Amount, either Underlying Securities having a principal amount equal to
the Partial Unwind Amount or the cash proceeds from the sale by the Marketing
Agent on behalf of such Certificateholder of such Underlying Securities (as
specified in the Partial Unwind Agreement) plus (to the extent such has
actually been paid to the Trustee by the Swap Counterparty) any breakage or
termination payment payable by the Swap Counterparty in connection with the
partial termination provided for in the Partial Unwind Agreement. Failure by
the Trustee to execute and deliver to such Certificateholder and Swap
Counterparty a Partial Unwind Agreement by not later than the second Business
Day before the proposed Partial Unwind Date shall be deemed to constitute
notice by the Trustee that it has elected not to countersign such Partial
Unwind Agreement. In the event that the Trustee elects not to countersign a
Partial Unwind Agreement, the Trust shall continue as if no Partial Unwind
Agreement had been tendered to the Trustee for countersignature. The execution
by such Certificateholder and the Swap Counterparty of such Partial Unwind
Agreement, taken together with the countersignature by the Trustee of such
Partial Unwind Agreement, shall be deemed to constitute an amendment to this
Trust Agreement under subsection 10.01(a) and, accordingly, shall not require
the consent of any Certificateholder other than the applicable Affiliated
Owner. In the event the Trustee elects to countersign a Partial Unwind
Agreement, the Trustee shall notify each Rating Agency rating such series of
Certificates of such Partial Unwind of Underlying Securities.

     (b) Certificates with respect to which a Partial Unwind Agreement relates
shall be delivered to the Trustee on the Partial Unwind Date. Each such
Certificate not so delivered shall be deemed delivered on the books of the
Trustee on the Partial Unwind Date. With respect to each Certificate deemed
delivered to the Trustee, the Trustee shall make any required payments or
deliveries on such Partial Unwind Date (or such later date as the Trustee is
actually in receipt of such payments or deliveries) to the applicable
Affiliated Owner listed on the Certificate Register and such Certificate shall
be deemed cancelled.

     (c) If the Underlying Securities underlying the Certificates with respect
to which a Partial Unwind Agreement shall have occurred are held by the
Trustee in certificated form, the Trustee shall, if necessary, request the
registrar for such Underlying Securities to deliver to the Trustee in
certificated form in appropriate denominations the Underlying Securities
evidenced by the Certificates so surrendered for withdrawal and, if the
requested Underlying Securities are received within 30 calendar days, the
Trustee shall deliver such Underlying Securities to the applicable Affiliated
Owner without unreasonable delay. If the requested certificated Underlying
Securities are not received within 30 calendar days, the Trustee shall
re-deliver the surrendered Certificates to such Affiliated Owner; provided,
however, the Trustee shall continue to seek to obtain the requested
certificated Underlying Securities and shall re-deliver the surrendered
Certificates, if the Affiliated Owner so requests and directs the Trustee and
delivers its Certificates.

                                      13

<PAGE>

     (d) If the Underlying Securities underlying the Certificates with respect
to which a Partial Unwind Agreement shall have occurred are held by the
Trustee in book-entry form, the Trustee shall arrange for beneficial ownership
thereof to be transferred to the applicable Affiliated Owner, or its designee,
on the records of the Clearing Agency with which the certificate evidencing
such Underlying Securities is on deposit.

     (e) Delivery of Underlying Securities in certificated form and
re-delivery of any Certificate pursuant to paragraph (c) above shall be made
by the Trustee at its Corporate Trust Office in New York City, except that, at
the written request, risk and expense of the Affiliated Owner surrendering
such Certificates and for the account of the Affiliated Owner thereof, such
delivery may be made at such other place as may be designated by such
Affiliated Owner and reasonably agreed to by the Trustee.

     (f) Upon delivery by the Trustee of any Underlying Security to an
Affiliated Owner pursuant to this Section 7, such Underlying Security and the
surrendered Certificate shall cease to be entitled to the benefit of this
Trust Agreement for all purposes of this Trust Agreement and the Trustee shall
have no further obligation to such Affiliated Owner with respect thereto.

     (g) The Affiliated Owner who surrenders Certificates to the Trustee as
provided herein in return for the Underlying Securities (whether in
certificated form or by book-entry) may not thereafter redeposit such
Underlying Securities with the Trustee and receive the benefit of this Trust
Agreement.

     (h) As a condition precedent to the delivery of Underlying Securities to
an Affiliated Owner upon delivery of a Partial Unwind Agreement, the Trustee
may require payment by such Affiliated Owner of a sum sufficient for
reimbursement of any tax or other governmental charge with respect thereto and
any other reasonable out-of-pocket costs or expenses incurred by the Trustee
in connection with such delivery, including the costs of delivery to any
office other than the Trustee's designated office in New York City.

     Section 8. Trustee's Fees.

     (a) As compensation for its services hereunder, the Trustee shall be
entitled to the Trustee Fee and any amounts payable under clauses 5(a)(iii)
above. The Trustee Fee shall be paid by the Depositor and not from Trust
Property. The Trustee shall bear all Ordinary Expenses. Failure by the
Depositor to pay such amount shall not entitle the Trustee to any payment or
reimbursement from the Trust, nor shall such failure release the Trustee from
the duties it is required to perform under the Trust Agreement.

     (b) Extraordinary Trust Expenses shall not be paid out of the Trust
Property unless all the holders of the Certificates then outstanding have
directed the Trustee to incur such Extraordinary Trust Expenses. The Trustee
may incur other Extraordinary Trust Expenses if any lesser percentage of the
Certificateholders requesting such action pursuant hereto reimburse the
Trustee for the cost thereof from their own funds in advance. If Extraordinary
Trust Expenses are not approved unanimously as set forth in the first sentence
of this Section 8(b), such Extraordinary Trust Expenses shall not be an
obligation of the Trust, and the Trustee shall not

                                      14

<PAGE>

file any claim against the Trust therefor notwithstanding failure of
Certificateholders to reimburse the Trustee.

     Section 9. Swap Payments. The Trust shall pay to the Swap Counterparty,
(i) all interest payments paid to the Trust in respect of the Underlying
Securities on the 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 next preceding the Closing Date to, but
excluding, the Closing Date and (ii) upon the occurrence of a Swap Termination
Event, other than a Special Termination Event, an amount equal to any Early
Termination Payment owed by it to the Swap Counterparty under the Swap
Agreement. All amounts received by the Trustee from the Swap Counterparty on
any date under the Swap Agreement shall be deposited into the Certificate
Account on such date.

     Section 10. Notices of Swap Termination Events.

          As promptly as practicable after, and in any event within 30 days
after, the occurrence of any Swap Termination Event actually known to the
Trustee, the Trustee shall give notice of such Swap Termination Event to the
Depository, or, if any Certificates are not then held by DTC or any other
depository, directly to the registered holders of such Certificates.

     Section 11. Miscellaneous.

     (a) The provisions of Section 4.04, Advances, of the Standard Terms shall
not apply to the Repackaged American General Floating Rate Trust Certificates,
Series 2003-1 Certificates.

     (b) The provisions of Section 4.07, Optional Exchange, of the Standard
Terms shall not apply to the Repackaged American General Floating Rate Trust
Certificates, Series 2003-1 Certificates.

     (c) The Trustee shall simultaneously forward reports to
Certificateholders and to the Swap Counterparty pursuant to Section 4.03 of
the Standard Terms and to the New York Stock Exchange.

     (d) Except as expressly provided herein, the Certificateholders shall not
be entitled to terminate the Trust or cause the sale or other disposition of
the Underlying Securities.

     (e) The provisions of Section 3.07(d) of the Standard Terms shall not
apply to the Repackaged American General Floating Rate Trust Certificates,
Series 2003-1 Certificates.

     (f) The outstanding principal balance of the Certificates shall not be
reduced by the amount of any Realized Losses (as defined in the Standard
Terms).

     (g) The Trust may not engage in any business or activities other than in
connection with, or relating to, the holding, protecting and preserving of the
Trust Property and the issuance of the Certificates, and other than those
required or authorized by the Trust Agreement or the Swap Agreement or
incidental and necessary to accomplish such activities. The Trust may not
issue or sell any certificates or other obligations other than the
Certificates or otherwise incur,

                                      15

<PAGE>

assume or guarantee any indebtedness for money borrowed. Notwithstanding
Section 3.05 of the Standard Terms, funds on deposit in the Certificate
Account shall not be invested. Section 2.01(f) of the Standard Terms shall be
superseded by this provision.

     (h) Notwithstanding anything in the Trust Agreement to the contrary, the
Trustee may be removed upon 60 days prior written notice delivered by the
holders of Certificates representing the Required Percentage-Removal. Section
2.01(f) of the Standard Terms shall be superseded by this provision.

     (i) In the event that the Internal Revenue Service challenges the
characterization of the Trust as a grantor trust, the Trustee shall then file
such forms as the Depositor may specify to establish the Trust's election
pursuant to Section 761 of the Code to exclude the Trust from the application
of Subchapter K of the Code and is hereby empowered to execute such forms on
behalf of the Certificateholders.

     (j) Notwithstanding anything in the Standard Terms to the contrary, the
Trustee, upon written direction by the Depositor, will execute the
Certificates.

     (k) The Trustee shall appoint a firm of independent certified public
accountants to review each of the distribution reports prepared by the Trustee
pursuant to Section 4.03 of the Standard Terms and to verify (x) that such
reports and the calculations made therein were made accurately and in
accordance with the terms of the Trust Agreement and (y) that the Depositor
and the Trustee have each fulfilled their obligations under this Trust
Agreement. The Trustee shall instruct the accountants (i) to promptly report
to the Trustee any errors in such distribution reports discovered in verifying
such calculations and (ii) to render to the Trustee an annual examination
report, prepared in compliance with established or stated criteria as set
forth in the professional standards of the American Institute of Certified
Public Accountants, within 45 days (or such longer period as may be acceptable
to the Trustee) following the end of each calendar year that specifies the
calculations made in reviewing the distribution reports prepared by the
Trustee for the previous calendar year and such accountants' associated
findings.

     (l) In relation to Section 7.01(f) of the Standard Terms, any periodic
reports filed by the Trustee pursuant to the Exchange Act in accordance with
the customary practices of the Depositor, need not contain any independent
reports.

     (m) Notwithstanding anything in the Trust Agreement to the contrary, the
Trustee will have no recourse to the Underlying Securities.

     (n) The Trust will not merge or consolidate with any other entity without
written confirmation from each Rating Agency that such merger or consolidation
will not result in the qualification, reduction or withdrawal of its
then-current rating on the Certificates.

     (o) All directions, demands and notices hereunder or under the Standard
Terms shall be in writing and shall be delivered as set forth below (unless
written notice is otherwise provided to the Trustee).

                                      16

<PAGE>

          If to the Depositor, to:

               Lehman ABS Corporation
               745 Seventh Avenue
               New York, New York  10019
               Attention:  Structured Credit Trading
               Telephone:  (212) 526-6575
               Facsimile:  (201) 508-4621

          If to the Trustee, to:

               U.S. Bank Trust National Association
               100 Wall Street New York, New York 10005
               Attention: Corporate Trust
               Telephone: (212) 361-2500
               Facsimile: (212) 809-5459

          If to the Rating Agencies, to:

               Moody's Investors Service, Inc.
               99 Church Street 21W
               New York, New York  10007
               Attention:  CBO/CLO Monitoring Department
               Telephone:  (212) 553-1494
               Facsimile:  (212) 553-0355

     and to:

               Standard & Poor's Ratings Services
               55 Water Street
               New York, New York  10041
               Attention:  Structured Finance Surveillance Group
               Telephone:  (212) 438-2482
               Facsimile:  (212) 438-2664

          If to the New York Stock Exchange, to:

               New York Stock Exchange, Inc.
               20 Broad Street
               New York, New York  10005
               Attention:  Vincent Patten
               Telephone:  (212) 656-5276
               Facsimile:  (212) 656-5780

                                      17

<PAGE>

          If to the Swap Counterparty, to:

               Lehman Brothers Derivative Products Inc.
               c/o Lehman Brothers Inc.
               745 Seventh Avenue, 28th Floor
               New York, New York  10019
               Attention:  Documentation Manager
               Telephone:  (212) 526-7187
               Facsimile:  (212) 526-7672

          Any notices given to the Depositor under this Agreement shall also
be given to the Swap Counterparty.

     (p) Each of the representations, covenants and agreements made herein by
each of the Depositor and the Trustee are for the benefit of the
Certificateholders.

     (q) The provisions of the Section 2.01(d)(iii) of the Standard Terms
shall not apply to the Repackaged American General Floating Rate Trust
Certificates, Series 2003-1 Certificates and the following shall be deemed to
be inserted in its place:

          "at the time of delivery of the Underlying Securities, the Depositor
owns such Underlying Securities, has the right to transfer its interest in
such Underlying Securities and such Underlying Securities are free and clear
of any lien, pledge, encumbrance, right, charge, claim or other security
interest; and"

     Section 12. Governing Law. THIS SERIES SUPPLEMENT AND THE TRANSACTIONS
DESCRIBED HEREIN SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED
WITHIN THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS
PROVISIONS THEREOF.

     Section 13. Counterparts. This Series Supplement may be executed in any
number of counterparts, each of which shall be deemed to be an original, and
all such counterparts shall constitute but one and the same instrument.

     Section 14. Termination of the Trust. The Trust shall terminate upon the
earliest to occur of (i) the distribution in full of all amounts due to the
Certificateholders following a Swap Termination Event; (ii) the Final
Scheduled Distribution Date and (iii) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James, living on the date
hereof.

     Section 15. Sale of Underlying Securities. In the event of a sale of the
Underlying Securities pursuant to Section 6 hereof, the Marketing Agent shall
sell the Underlying Securities in accordance with the Sale Procedure.

     Section 16. Amendments. Notwithstanding anything in the Trust Agreement
to the contrary, in addition to the other restrictions on modification and
amendment contained therein, the Trustee shall not enter into any amendment or
modification of the Trust Agreement which

                                      18

<PAGE>

would adversely affect in any material respect the interests of the holders of
any class of Certificates without the consent of the holders of 100% of such
class of Certificates; provided, however, that no such amendment or
modification will be permitted which would cause the Trust to be taxed as an
association or publicly traded partnership taxable as a corporation for
federal income tax purposes. The Trustee shall not enter into any amendment or
modification of the Trust Agreement that would affect the method, amount or
timing of payments due to the Swap Counterparty or the consent rights of the
Swap Counterparty hereunder without the prior written consent of the Swap
Counterparty. Unless otherwise agreed, the Trustee shall provide five Business
Days written notice to each Rating Agency and the Swap Counterparty before
entering into any amendment or modification of the Trust Agreement pursuant to
this Section 16.

     Section 17. Voting of Underlying Securities, Modification of Underlying
Securities Indenture, Modification of Swap Agreement.

     (a) The Trustee, as holder of the Underlying Securities, has the right to
vote and give consents and waivers in respect of the Underlying Securities as
permitted by the Depository and except as otherwise limited by the Trust
Agreement. In the event that the Trustee receives a request from the
Depository, the Underlying Securities Trustee or the Underlying Securities
Issuer for its consent to any amendment, modification or waiver of the
Underlying Securities, the Underlying Securities Indenture or any other
document thereunder or relating thereto, or receives any other solicitation
for any action with respect to the Underlying Securities, the Trustee shall
mail a notice of such proposed amendment, modification, waiver or solicitation
to the Swap Counterparty and each Certificateholder of record as of such date.
Notwithstanding anything in the Trust Agreement to the contrary, until a Swap
Termination Event has occurred, the Swap Counterparty shall have all rights to
vote on any matters with respect to the Underlying Securities. During the
continuance of a Swap Termination Event, the Certificateholders shall have all
rights to vote on any matters with respect to the Underlying Securities, and
in such event: (i) the Trustee shall request instructions from the
Certificateholders as to whether or not to consent to or vote to accept such
amendment, modification, waiver or solicitation; (ii) the Trustee shall
consent or vote, or refrain from consenting or voting, in the same proportion
(based on the relative outstanding Certificate Principal Amounts of the
Certificates) as the Certificates of the Trust were actually voted or not
voted by the Certificateholders thereof as of a date determined by the Trustee
prior to the date on which such consent or vote is required. However,
notwithstanding anything in the Trust Agreement to the contrary (including
this Section 17), the Trustee shall at no time vote on or consent to any
matter (A) unless such vote or consent would not (based on an opinion of
counsel) cause the Trust to be taxed as an association or publicly traded
partnership taxable as a corporation under the Code, (B) which would alter the
timing or amount of any payment on the Underlying Securities, including,
without limitation, any demand to accelerate the Underlying Securities, except
in the event of a default under the Underlying Securities or an event which
with the passage of time would become an event of default under the Underlying
Securities and with (prior to a Swap Termination Event) the consent of the
Swap Counterparty or (during the continuance of a Swap Termination Event) the
unanimous consent of holders of all outstanding Certificates, or (C) which
would result in the exchange or substitution of any of the outstanding
Underlying Securities pursuant to a plan for the refunding or refinancing of
such Underlying Securities except in the event of a default under the
Underlying Securities Indenture and only with the consent of (prior to a Swap
Termination Event) the Swap Counterparty or (during the continuance of a Swap
Termination Event) Certificateholders

                                      19

<PAGE>

representing 100% of the Certificates. The Trustee shall have no liability for
any failure to act resulting from late return of, or failure to return,
directions requested by the Trustee from the Certificateholders or the Swap
Counterparty.

     (b) In the event that an offer is made by the Underlying Securities
Issuer or any other Person to issue new obligations in exchange and
substitution for any of the Underlying Securities, pursuant to a plan for the
refunding or refinancing of the outstanding Underlying Securities or any other
offer is made for the Underlying Securities, the Trustee shall notify the Swap
Counterparty and the Certificateholders of such offer promptly. The Trustee
must reject any such offer unless, prior to the occurrence of a Swap
Termination Event, the Trustee is directed by the Swap Counterparty to accept
such offer and the Trustee has received the tax opinion described above.
During the continuance of a Swap Termination Event, the Trustee must reject
any such offer unless a default on the Underlying Securities shall have
occurred, and the Trustee is directed by affirmative vote of the holders of
100% of the Certificates to accept such offer and the Trustee has received the
tax opinion described above. If pursuant to the preceding two sentences, the
Trustee accepts any such offer the Trustee shall promptly notify the Rating
Agencies.

     (c) If an event of default under the Underlying Securities Indenture
occurs and is continuing, and if directed by the Swap Counterparty, or, during
the continuance of a Swap Termination Event, a majority of the outstanding
Certificateholders, the Trustee shall vote the Underlying Securities in favor
of directing, or take such other action as may be appropriate to direct, the
Underlying Securities Trustee to declare the unpaid principal amount of the
Underlying Securities and any accrued and unpaid interest thereon to be due
and payable.

     (d) Until a Responsible Officer of the Trustee has actual knowledge of
the occurrence of an event that would constitute a Swap Termination Event, the
Trustee shall be entitled to assume (and shall be fully protected, indemnified
and held harmless in doing so, in accordance with Section 7.12 of the Standard
Terms) that no Swap Termination Event has occurred and may accordingly seek
instructions under this Section 17 exclusively from the Swap Counterparty.

     (e) The Trustee shall not consent to any amendment to the Swap Agreement
unless (i) it shall have received the prior consent to such amendment of
Certificateholders representing 66 2/3% of the aggregate Voting Rights and
(ii) each Rating Agency shall have confirmed in writing that such amendment
will not result in a reduction or withdrawal of the then current rating of the
Certificates; provided, however, the Trustee may consent to any amendment to
the Swap Agreement without the consent of the 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 thereof, or to otherwise
cure any defect therein, provided that any such amendment does not materially
adversely affect the interest of the certificateholders and that each Rating
Agency shall 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, the Trustee shall not consent to any amendment to the Swap Agreement
that alters the timing or amount of any payment on the Swap Agreement unless
(i) it shall have received the prior consent to such amendment of
certificateholders representing 100% of the aggregate Voting Rights and (ii)
each Rating Agency

                                      20

<PAGE>

been given prior written notice of any such amendment (and no rating
confirmation shall be required).

     Section 18. Additional Depositor Representation. It is the express intent
of the parties hereto that the conveyance of the Underlying Securities by the
Depositor to the Trustee be, and be construed as, a sale of the Underlying
Securities by the Depositor and not a pledge of any Underlying Securities by
the Depositor to secure a debt or other obligation of the Depositor. In the
event that, notwithstanding the aforementioned intent of the parties, any
Underlying Securities are held to be property of the Depositor, then, it is
the express intent of the parties that such conveyance be deemed a pledge of
such Underlying Securities and all proceeds thereof by the Depositor to the
Trustee to secure a debt or other obligation of the Depositor, pursuant to
Section 10.07 of the Standard Terms. In connection with any such grant of a
security interest in the Underlying Securities and all proceeds thereof
(including any such grant in connection with any sale of additional Underlying
Securities pursuant to Section 3(d)), the Depositor hereby represents and
warrants to Trustee as follows:

     (i)    In the event the Underlying Securities are held to be property of
            the Depositor, then the Trust Agreement creates a valid and
            continuing security interest (as defined in the UCC) in the
            Underlying Securities in favor of the Securities Intermediary
            which security interest is prior to all other liens, and is
            enforceable as such as against creditors of, and purchasers from,
            the Depositor.

     (ii)   The Underlying Securities have been credited to a trust account
            (the "Securities Account") established in the name of the Trustee
            in accordance with Section 2.01 of the Standard Terms. U.S. Bank
            Trust National Association, as securities intermediary (the
            "Securities Intermediary") has established the Securities Account
            and has agreed to treat the Underlying Securities as "financial
            assets" within the meaning of the UCC.

     (iii)  Immediately prior to the transfer of the Underlying Securities to
            the Trust, the Depositor owned and had good and marketable title
            to the Underlying Securities free and clear of any lien, claim or
            encumbrance of any Person.

     (iv)   The Depositor has received all consents and approvals required by
            the terms of the Underlying Securities for the transfer to the
            Trustee all of the Depositor's interest and rights in the
            Underlying Securities as contemplated by the Trust Agreement.

     (v)    The Depositor has taken all steps necessary to cause the
            Securities Intermediary to identify on its records that the
            Trustee is the Person owning the security entitlements credited to
            the Securities Account.

     (vi)   Other than the security interest granted to the Trust pursuant to
            this Agreement, the Depositor 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).
            The Depositor has not authorized the filing of and is not aware of
            any

                                      21

<PAGE>

            financing statements against the Depositor that include a
            description of the Underlying Securities other than any financing
            statement relating to the security interest granted to the Trust
            hereunder. The Depositor is not aware of any judgment or tax lien
            filings against the Depositor.

     (vii)  The Securities Account is not in the name of any Person other than
            the Trustee. The Depositor has not consented to the compliance by
            the Securities Intermediary, with entitlement orders of any Person
            other than the Trustee.

                                      22

<PAGE>

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

                              LEHMAN ABS CORPORATION,
                                  as Depositor

                              By:____________________________
                                 Name:
                                 Title:

                              U.S. BANK TRUST NATIONAL ASSOCIATION,
                                 not in its individual capacity but solely as
                                 Trustee on behalf of the
                                 Repackaged American General Floating Rate
                                 Trust Certificates,
                                 Series 2003-1 Trust

                              By:____________________________
                                 Name:
                                 Title:

                                      23

<PAGE>

                                                                    SCHEDULE I

         REPACKAGED AMERICAN GENERAL FLOATING RATE TRUST CERTIFICATES
                                 SERIES 2003-1

                        UNDERLYING SECURITIES SCHEDULE

Underlying Securities:                    7 1/2% Notes.

Issuer:                                   American General Corporation.

CUSIP Number:                             026351AU0.

Principal Amount Deposited:               $10,000,000.

Original Issue Date:                      The Underlying Securities were
                                          issued on July 11, 1995.

Principal Amount of
Underlying Securities
Originally Issued:                        $150,000,000.

Maturity Date:                            July 15, 2025.

Interest Rate:                            7 1/2% per annum.

Interest Payment Dates:                   January 15th and July 15th.

Record Dates:                             January 1st and July 1st.

                                      I-1

<PAGE>

                                   EXHIBIT A
                           FORM OF TRUST CERTIFICATE

                               TRUST CERTIFICATE
                               -----------------

NUMBER 1                                                           $10,000,000
                                                         CUSIP NO. 76027Y AA 2

                      SEE REVERSE FOR CERTAIN DEFINITIONS

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER
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 DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), 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.

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

                                      A-1

<PAGE>

                            LEHMAN ABS CORPORATION

                                  $10,000,000

         REPACKAGED AMERICAN GENERAL FLOATING RATE TRUST CERTIFICATES
                                 SERIES 2003-1

INTEREST RATE: 1.42054% UNTIL THE DISTRIBUTION DATE IN JULY 2003 AND
THREE-MONTH LIBOR PLUS 0.30% THEREAFTER

          evidencing a proportionate undivided beneficial ownership interest
in the Trust, as defined below, the property of which consists principally of
$10,000,000 aggregate principal amount of 7 1/2% Notes due 2025, issued by
American General Corporation (the "Underlying Securities Issuer") and all
payments received thereon, deposited in trust by Lehman ABS Corporation (the
"Depositor"), and certain rights of the Trust under the Swap Agreement (the
"Trust Property").

          THIS CERTIFIES THAT CEDE & CO. is the registered owner of an
aggregate of $10,000,000 principal amount nonassessable, fully-paid,
proportionate undivided beneficial ownership interest in the Repackaged
American General Floating Rate Trust Certificates Series 2003-1 Trust, formed
by the Depositor.

                                      A-2

<PAGE>

          The Trust was created pursuant to a Standard Terms for Trust
Agreements, dated as of January 16, 2001 (the "Standard Terms"), between the
Depositor and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the Series Supplement in respect of the
Repackaged American General Floating Rate Trust Certificates, Series 2003-1,
dated as of July 2, 2003 (the "Series Supplement" and, together with the
Standard Terms, the "Trust Agreement"), between the Depositor 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 the "Repackaged American General Floating Rate Trust
Certificates, Series 2003-1" (herein called the "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 Trust Property consists of: (i) Underlying Securities
described in the Trust Agreement, (ii) all payments on or collections in
respect of the Underlying Securities accrued on or after July 2, 2003,
together with any and all income, proceeds and payments with respect thereto;
provided, however, that any income from the investment of Trust funds in
certain permitted investments ("Eligible Investments") does not constitute
Trust Property and (iii) the rights of the Trust under the Swap Agreement
(subject to the Trust's obligations to the Swap Counterparty under the Swap
Agreement).

          Subject to the terms and conditions of the Trust Agreement
(including the availability of funds for distributions) and until the
obligation created by the Trust Agreement shall have terminated in accordance
therewith, distributions will be made on each Distribution Date, to the Person
in whose name this Certificate is registered on the applicable Record Date, in
an amount equal to such Certificateholder's proportionate undivided beneficial
ownership interest in the amount required to be distributed to the Holders of
the Certificates on such Distribution Date. The Record Date applicable to any
Distribution Date is the close of business on the day immediately preceding
such Distribution Date (whether or not a Business Day). If a payment with
respect to the Underlying Securities is made to the Trustee after the date on
which such payment was due, then the Trustee will distribute any such amounts
received on the next occurring Business Day.

          Each Certificateholder, by its acceptance of a Certificate,
covenants and agrees that such Certificateholder will not at any time
institute against the Trust, or join in any institution against the Trust of,
any bankruptcy proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Certificates
or the Trust Agreement.

          Distributions made on this Certificate will be made as provided in
the Trust Agreement by the Trustee by wire transfer in immediately available
funds, or check mailed to the Certificateholder of record in the Certificate
Register without the presentation or surrender of

                                      A-3

<PAGE>

this Certificate or the making of any notation hereon, except that with
respect to Certificates registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee shall be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the Corporate Trust Office or such other location as may be specified in
such notice.

          Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
or on behalf 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.

          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 HOLDER HEREOF SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      A-4

<PAGE>

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

                             REPACKAGED AMERICAN GENERAL
                             FLOATING RATE TRUST CERTIFICATES,
                             SERIES 2003-1

                             By: U.S. BANK TRUST NATIONAL
                             ASSOCIATION
                             not in its individual capacity but solely as
                             Trustee,

                             By:
                                --------------------------------------------
                                Authorized Signatory

Dated:  July 2, 2003

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Repackaged American General Floating Rate Trust
Certificates, Series 2003-1, described in the Trust Agreement referred to
herein.

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

By:
   --------------------------
     Authorized Signatory

                                      A-5

<PAGE>

                           (REVERSE OF CERTIFICATE)

          The Certificates are limited in right of distribution to certain
payments and collections respecting the Swap Agreement and the Underlying
Securities, all as more specifically set forth herein and in the Trust
Agreement. The registered Holder hereof, by its acceptance hereof, agrees that
it will look solely to the Trust Property (to the extent of its rights
therein) for distributions hereunder.

          The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the Trustee and the rights of the
Certificateholders under the Trust Agreement at any time by the Depositor and
the Trustee with the consent of the Swap Counterparty and the Holders of the
Certificates in the manner set forth in the Series Supplement and the Standard
Terms. Any such consent by the Holder of this Certificate (or any predecessor
Certificate) shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange hereof or in lieu hereof whether or not a
notation of such consent is made upon this Certificate. The Trust Agreement
also permits the amendment thereof, in certain limited circumstances, without
the consent of the Holders of any of the Certificates.

          The Certificates are issuable in fully registered form only in
denominations of $1,000.

          As provided in the Trust Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate
for registration of transfer at the offices or agencies of the Certificate
Registrar maintained by the Trustee in the Borough of Manhattan, the City of
New York, duly endorsed by or accompanied by an assignment in the form below
and by such other documents as required by the Trust Agreement, and thereupon
one or more new Certificates of the same class in authorized denominations
evidencing the same principal amount will be issued to the designated
transferee or transferees. The initial Certificate Registrar appointed under
the Trust Agreement is U.S. Bank Trust National Association.

          No service charge will be made for any registration of transfer or
exchange, but the Trustee may require exchange of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Certificates.

          The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Depositor, the Trustee, nor
any such agent shall be affected by any notice to the contrary.

          It is the intention of the parties to the Trust Agreement that the
Trust created thereunder shall constitute a fixed investment trust for federal
income tax purposes under Treasury Regulation Section 301.7701-4, and the
Certificateholder agrees to treat the Trust, any distributions therefrom and
its beneficial interest in the Certificates consistently with such
characterization.

                                      A-6

<PAGE>

          The Trust and the obligations of the Depositor and the Trustee
created by the Trust Agreement with respect to the Certificates shall
terminate upon the earliest to occur of (i) the distribution in full of all
amounts due to the Certificateholders following a Swap Termination Event; (ii)
the Final Scheduled Distribution Date and (iii) the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy,
the late Ambassador of the United States to the Court of St. James, living on
the date hereof.

          An employee benefit plan subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), a plan described in Section
4975(e) of the Code, an entity whose underlying assets include plan assets by
reason of any such plan's investment in the entity, including an individual
retirement account or Keogh plan (any such, a "Plan") may purchase and hold
Certificates if the Plan can represent and warrant that its purchase and
holding of the Certificates would not be prohibited under ERISA or the Code.

                                      A-7

<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:

                                                              *

                                                   Signature Guaranteed:

                                                              *

*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.

                                      A-8

<PAGE>

                                   EXHIBIT B
                            FORM OF SWAP AGREEMENT

(Multicurrency - Cross Border)

                                    ISDA(R)

                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

                         dated as of July 2, 2003

                                        REPACKAGED AMERICAN GENERAL
LEHMAN BROTHERS DERIVATIVE              FLOATING RATE TRUST
PRODUCTS INC.                    and    CERTIFICATES, SERIES 2003-1 TRUST

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: --

     Section 19. 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.

     Section 20. 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

                                     B-1

<PAGE>

     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.

     (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

                                     B-2

<PAGE>

               (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:-

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

          (ii) 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.

          (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.

     Section 21. 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;

                                     B-3

<PAGE>

          (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)).

     (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.

     Section 22. 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;

                                     B-4

<PAGE>

          (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, 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.

     Section 23. 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

                                     B-5

<PAGE>

          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 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,

                                     B-6

<PAGE>

          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 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));

                                     B-7

<PAGE>

          (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.

     Section 24. 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.

                                     B-8

<PAGE>

     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
     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

                                     B-9

<PAGE>

     (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 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: --

          (i)  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)

                                     B-10

<PAGE>

               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

          (ii) 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.

     Section 25. 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.

     Section 26. 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

                                     B-11

<PAGE>

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.

     Section 27. Miscellaneous

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

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

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

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

     (e) Counterparts and Confirmations.

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

          (ii) The parties intend that they are legally bound by the terms of
     each Transaction from the moment they agree to those terms (whether
     orally or otherwise). A Confirmation shall he entered into as soon as
     practicable and may he executed and delivered in counterparts (including
     by facsimile

                                     B-12

<PAGE>

     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.

     Section 28. 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.

     Section 29. 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 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.

     Section 30. 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

                                     B-13

<PAGE>

          (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.

     Section 31. 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 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.

     Section 32. Definitions

          As used in this Agreement: --

                                     B-14

<PAGE>

          "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.

          "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).

                                     B-15

<PAGE>

          "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 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

                                     B-16

<PAGE>

time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than
three quotations are provided, the Market Quotation will be the arithmetic
mean of the quotations, without regard to the quotations having the highest
and lowest values. If exactly three such quotations are provided, the Market
Quotation will be the quotation remaining after disregarding the highest and
lowest quotations. For this purpose, if more than one quotation has the same
highest value or lowest value, then one of such quotations shall be
disregarded. If fewer than three quotations are provided, it will be deemed
that the Market Quotation in respect of such Terminated Transaction or group
of Terminated Transactions cannot be determined.

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

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

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

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

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

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

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

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

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

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

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

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

          "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

                                     B-17

<PAGE>

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 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

                                     B-18

<PAGE>

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.

<TABLE>
<S>                                                          <C>
       LEHMAN BROTHERS DERIVATIVE PRODUCTS INC.                    REPACKAGED AMERICAN GENERAL FLOATING RATE TRUST
                                                                          CERTIFICATES, SERIES 2003-1 TRUST
                     (Party A)                                                      (Party B)

                                                             By:   U.S. Bank Trust National Association, not in
                                                                   its individual capacity but solely as Trustee
By:    ________________________________                            under the Trust Agreement
       Name:
       Title:

                                                             By:   ________________________________
                                                                   Name:
                                                                   Title:
</TABLE>

                                     B-19

<PAGE>

                                   SCHEDULE
                            to the Master Agreement
                           dated as of July 2, 2003

                                    between

             LEHMAN BROTHERS DERIVATIVE PRODUCTS INC. ("Party A"),
                         a corporation organized under
                                  the laws of
                             the State of Delaware
                                      and

                   REPACKAGED AMERICAN GENERAL FLOATING RATE
              TRUST CERTIFICATES, SERIES 2003-1 TRUST("Party B")
            a trust created under the laws of the State of New York
              pursuant to the Trust Agreement (as defined herein)

     Section 33. Termination Provisions.

In this Agreement:-

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

     Section 5(a)(v)                                  Not Applicable.
     ---------------
     Section 5(a)(vi)                                 Not Applicable.
     ----------------
     Section 5(a)(vii)                                Not Applicable.
     -----------------
     Section 5(b)(iv)                                 Not Applicable.
     ----------------

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

     Section 5(a)(v)                                  Not Applicable.
     ---------------
     Section 5(a)(vi)                                 Not Applicable.
     ----------------
     Section 5(a)(vii)                                Not Applicable.
     -----------------
     Section 5(b)(iv)                                 Not Applicable.
     ----------------

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

     (c) Failure to Pay or Deliver. Section 5(a) is hereby amended by
replacing the word "third" with the word "tenth" in the last line of
subsection (i) thereof.

     (d) Section 5(a) is hereby amended by: (1) deleting the word "or" at the
end of Subsection (vii) thereof; (2) deleting the period at the end of
Subsection (viii) thereof and replacing it with "; or" and (3) adding the
following Subsection (ix) at the end of such Section 5(a):

                                     B-20

<PAGE>

       (ix)Underlying Securities Termination Default. An Underlying Securities
       Termination Default shall have occurred and be continuing.

       For the purpose of the foregoing Event of Default, the Defaulting Party
       shall be Party B.

     (e) The provisions of Section 5(a) (as modified by (c) and (d) above) and
Section 5(b) will apply to Party A and to Party B as follows:-

<TABLE>
<CAPTION>
     Section 5(a)                                                Party A                 Party B
     ------------                                                -------                 -------
<S>                                                              <C>                     <C>
     (i)     "Failure to Pay or Deliver"                         Applicable.             Applicable.
     (ii)    "Breach of Agreement"                               Not Applicable.         Not Applicable.
     (iii)   "Credit Support Default"                            Not Applicable.         Not Applicable.
     (iv)    "Misrepresentation"                                 Not Applicable.         Not Applicable.
     (v)     "Default under Specified Transaction"               Not Applicable.         Not Applicable.
     (vi)    "Cross Default"                                     Not Applicable.         Not Applicable.
     (vii)   "Bankruptcy"                                        Applicable.             Not Applicable.
     (viii)  "Merger Without Assumption"                         Not Applicable.         Not Applicable.
     (ix)    "Underlying Securities Termination
                      Default"                                   Not Applicable.         Applicable.

     Section 5(b)                                                Party A                 Party B
     ------------                                                -------                 -------

     (i)     "Illegality"                                        Applicable.             Applicable.
     (ii)    "Tax Event"                                         Not Applicable.         Not Applicable.
     (iii)   "Tax Event Upon Merger"                             Not Applicable.         Not Applicable.
     (iv)    "Credit Event Upon Merger"                          Not Applicable.         Not Applicable.
     (v)     "Additional Termination Event"                      Applicable.             Applicable.
</TABLE>

     (f) The following shall each be specified as "Additional Termination
Events" pursuant to Section 5(b)(v):

          Partial Unwind. The exercise of a partial unwind of the Underlying
          Securities by a Certificateholder in accordance with Section 7 of
          the Series Supplement, in which case, (1) a portion of the Notional
          Amount of the Transactions equal to the related Partial Unwind
          Amount shall be terminated and (2) the Early Termination Date with
          respect to such portion of the Notional Amount of the Transactions
          shall be the related Partial Unwind Date. For the purposes the
          foregoing Additional Termination Event, Party A shall be the
          Affected Party.

          Trigger Event. The occurrence of a Trigger Event, in which case the
          entire Notional Amount of the Transaction shall be terminated. Each
          of the following events shall constitute a Trigger Event:

          (1) Downgrade. Party A ceases to maintain a Single A Quality
          financial program, counterparty or similar rating from both of the
          Relevant Rating Agencies;

                                     B-21

<PAGE>

          (2) Failure To Deliver Collateral. The occurrence of an Event of
          Default under the ISDA Master Agreement dated July 16, 1998 between
          Party A and LBSF (the "Offsetting Transaction Master Agreement") as
          a result of LBSF's failure to deliver, or procure delivery of,
          collateral to Party A in the amounts and within the time required
          (subject to any applicable cure period) thereunder and under the
          terms of any applicable Credit Support Document, as such may be
          amended from time to time without the consent of, or notice to,
          Party B, provided such amendments are consistent with the
          requirements of Party A's financial program as represented to the
          Relevant Rating Agencies;

          (3) Bankruptcy. LBHI or LBSF: (A) is dissolved (other than pursuant
          to a consolidation, amalgamation or merger); (B) 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; (C) makes a
          general assignment, arrangement or composition with or for the
          benefit of its creditors; (D) 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 (x) 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 (y) is not dismissed,
          discharged, stayed or restrained in each case within 30 days of the
          institution or presentation thereof; (E) has a resolution passed for
          its winding-up, official management or liquidation (other than
          pursuant to a consolidation, amalgamation or merger); (F) 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;
          (G) 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; (H) 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 (A) through (G) inclusive; or (I)
          takes any action in furtherance of, or indicating its consent to,
          approval of, or acquiescence in, any of the foregoing acts; and

          (4) Capital Requirement. Party A shall fail to maintain capital in
          the amount consistent with its financial program as represented to
          the Relevant Rating Agencies.

          For the purposes of the foregoing Additional Termination Event,
          Party A shall be the Affected Party.

          Underlying Acceleration Termination. The occurrence of an Underlying
          Acceleration Termination, in which case, (1) the entire Notional
          Amount of the

                                     B-22

<PAGE>

          Transaction shall be terminated and (2) the Early Termination Date
          shall be the date of receipt by Party B of the related accelerated
          payments. For the purposes of the foregoing Additional Termination
          Event, Party B shall be the Affected Party.

     (g) Event of Default or Other Termination Event After Trigger Event. If a
Trigger Event shall have occurred and an event or circumstance which would
otherwise constitute or give rise to (1) an Event of Default with Party A as
the Defaulting Party (other than an Event of Default pursuant to Sections
5(a)(vii) or 5(a)(ix)), (2) a Termination Event other than a Trigger Event
shall occur, or (3) a Credit Assignment Event (as defined in part 5(a)(1)
hereof), such Trigger Event will prevail and such other event or circumstance
will not constitute an Event of Default, a Termination Event or a Credit
Assignment Event, as the case may be.

     (h) Effect of Trigger Event. Notwithstanding anything to the contrary
contained in this Agreement, if a Trigger Event occurs the following
provisions shall apply:

          (1) Notice. Party A shall, within one Business Day of becoming aware
          of such occurrence, notify Party B by facsimile transmission or
          electronic messaging system (the date such notice is transmitted,
          the "Notice Date"), specifying the nature of the Trigger Event and
          designating the Early Termination Date in respect of all
          Transactions. The Early Termination Date so designated shall be no
          later than the fifth Universal Business Day following such Notice
          Date. The Early Termination Date so designated shall be subject to
          change as specified in paragraph (h)(4)(a) below and, in the case of
          affected Transactions only, as specified in paragraph (h)(4)(b)
          below.

          (2) Market Quotation. For the purposes of determining the Settlement
          Amount pursuant to Section 6(e)(iv), the "Market Quotation" of a
          Terminated Transaction (which may be positive or negative) shall be
          the amount determined by Party A, using Market Rates and
          Volatilities and by polling the Dealer Group as required, to be the
          mid-market value of the Transaction as of the close of business (New
          York time) on the Early Termination Date. Party A shall perform such
          determinations in good faith in accordance with its usual operating
          procedures and pursuant to industry standards. For purposes of this
          definition, if the Market Quotation of a Terminated Transaction
          represents an amount payable to Party A, it shall be expressed as a
          negative number, and if the Market Quotation represents an amount
          payable to Party B, it shall be expressed as a positive number. For
          purposes of determining the Settlement Amount, Unpaid Amounts (which
          shall be determined by Party A) in respect of the Terminated
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the Early Termination Date, have
          been required (assuming satisfaction of each applicable condition
          precedent) after the Early Termination Date is to be included. Party
          A shall notify Party B of the Market Quotation of each Terminated
          Transaction, the Settlement Amount and the Termination Currency
          Equivalent of any Unpaid Amounts within two Business Days following
          the Early Termination Date.

          (3) Payment Date. The amount calculated as being due as a result of
          a Termination Event that arises as a result of a Trigger Event
          pursuant to

                                     B-23

<PAGE>

          Section 6(e)(iv) will be payable, in the case of an amount due and
          owing to Party A, within ten Universal Business Days following the
          Early Termination Date, and in the case of an amount due and owing
          to Party B, within ten Universal Business Days following the Early
          Termination Date. Party A and Party B agree that the party that is
          required to pay such amount shall be required to pay interest on
          such amount for the period from (and including) the Early
          Termination Date to (but excluding) the date payment is required to
          be made, at the Agreed Interest Rate. If either party fails to pay
          such amount on the due date, such failure shall constitute a breach
          of this Agreement, but shall not constitute an Event of Default
          (including an Event of Default pursuant to Section 5(a)(i) or
          5(a)(ii)) for purposes of this Agreement. In the event of any such
          failure by either party, such party shall be required to pay
          interest on such overdue amount for the period from (and including)
          such due date to (but excluding) the date of actual payment, at the
          default rate, which is the Agreed Interest Rate plus 3% per annum.
          Interest payable under this paragraph will be calculated on the
          basis of daily compounding and the actual number of days elapsed
          divided by 360.

          (4) Effect of Market Disruption Event. (a) In the event that a
          Market Disruption Event exists on any Early Termination Date, such
          date shall not be an Early Termination Date for any outstanding
          Transaction. In such event Party A shall notify Party B and the
          earlier to occur of (i) the next succeeding Universal Business Day
          on which a Market Disruption Event does not exist and (ii) the
          eighth Universal Business Day following the day on which notice of
          the occurrence of a Trigger Event was given shall be considered the
          Early Termination Date for all outstanding Transactions and a
          Settlement Amount shall be obtained for that Early Termination Date
          in accordance with the terms set forth in this paragraph (h). As
          used herein, "Market Disruption Event" means any of the following
          events, the existence of which shall be determined by Party A: (i)
          any suspension or material limitation of trading (excluding daily
          settlement limits in the normal course of trading) on the New York
          Stock Exchange, London Stock Exchange or other recognized stock
          exchange the effect of which on financial markets makes it
          impracticable or inadvisable, in the view of Party A, to proceed
          with the determination of the Settlement Amount, (ii) the
          declaration of a banking moratorium by the Bank of England, United
          States federal authorities, New York State or other recognized
          international, national or regional banking authority authorities
          the effect of which on financial markets makes it impracticable or
          inadvisable, in the view of Party A, to proceed with the
          determination of the Settlement Amount, (iii) the occurrence of any
          outbreak or escalation of hostilities or a declaration by the United
          States of a national emergency or war the effect of which on
          financial markets makes it impracticable or inadvisable, in the view
          of Party A, to proceed with the determination of the Settlement
          Amount, or (iv) the occurrence of any other calamity or crisis or
          any other event the effect of which, in the view of Party A and a
          majority of eleven randomly selected unaffiliated Qualified
          Counterparties of Party A (who are not Affiliates of Party A) whose
          Settlement Amounts otherwise would have been determined on such
          Early Termination Date, makes it impracticable or

                                     B-24

<PAGE>

          inadvisable to proceed with the determination of such Settlement
          Amounts on such Early Termination Date.

               (b) If on an Early Termination Date as to which there is no
          Market Disruption Event, there are conditions in a local market
          that, in the judgment of Party A, materially would impede its
          ability to determine the Market Quotation for certain Transactions
          in that market (a "Local Market Disruption Event"), Party A shall
          notify Party B of those conditions no later than one hour prior to
          the scheduled time for determining the Market Quotation for such
          affected Transactions on that date. Upon receipt of such notice,
          Party B shall have the right to delay the Early Termination Date for
          the affected Transactions (without affecting the Early Termination
          Date for any other Transactions under this Agreement) by notifying
          Party A within one hour of its election to exercise that right (to
          be subsequently confirmed in writing). In such event, the Early
          Termination Date for each such affected Transaction shall be the
          next day on which Party A and Party B agree that the Local Market
          Disruption Event ceases to exist, but in any case not later than the
          due date for Settlement Amount payments owed to Party A with respect
          to unaffected Transactions as provided in paragraph (h)(3). Market
          Quotations so obtained for any affected Transaction shall be
          included in the calculation of the Settlement Amount to paid as
          provided in paragraph (h)(3). No delay in the Early Termination Date
          for any affected Transaction as provided above shall affect the days
          on which payments would otherwise be required to be made pursuant to
          paragraph (h)(3) had no such delay occurred, it being understood,
          however, that interest shall begin to accrue pursuant to such
          paragraph with respect to any such affected Transaction only from
          (and including) the delayed Early Termination Date.

          (5) Payments on Early Termination. This Agreement shall be amended
          by adding the following new subsection (v) to Section 6(e):

               "(v) Trigger Event. If an Early Termination Date results from a
               Trigger Event, Party A shall determine the Settlement Amount of
               all Terminated Transactions on such date, and the amount
               payable will be equal to (A) the Settlement Amount in respect
               of the Terminated Transactions plus (B) the Termination
               Currency Equivalent of Unpaid Amounts owing to Party B minus
               (C) the Termination Currency Equivalent of Unpaid Amounts owing
               to Party A. If that amount is a positive number, Party A will
               pay it to Party B; if it is a negative number, no amount will
               be paid by Party B to Party A. For purposes of determining the
               Settlement Amount under this subsection, clause (b) of the
               definition of Settlement Amount shall not apply."

     (i) Automatic Early Termination. The "Automatic Early Termination"
provisions of Section 6(a) will not apply to Party A or Party B.

     (j) Effect of Underlying Acceleration Termination. No Early Termination
Payment shall be payable by either party upon the occurrence of an Underlying
Acceleration

                                     B-25

<PAGE>

Termination unless another Early Termination Event shall have occurred on or
prior to the Early Termination Date for such Underlying Acceleration
Termination, in which case, the Early Termination Payment, if any, for such
other Early Termination Event, shall be payable.

     (k) Additional Definitions.

     As used in this Schedule, the following terms shall have the following
meanings:

     "Agreed Interest Rate" for any day means the overnight ask rate in effect
     for such day, as set forth opposite the caption "ON" under the heading
     "Euro-Dollar" on Telerate Page 4756 (or any successor page thereto), as
     of 11:00 a.m., New York time, on such day.

     "Business Day" means any day (which is neither a Saturday nor a Sunday)
     nor a day on which banks in New York City or the place of payment in
     respect of the Underlying Securities are authorized or required to be
     closed.

     "Dealer Group" means the following entities and such other entities as
     may be selected by Party A from time to time: JPMorgan Chase Bank,
     Citibank, N.A., Barclays Bank PLC, Merrill Lynch Capital Services, Inc.,
     Deutsche Bank AG, The Royal Bank of Scotland plc, HSBC Bank USA, Sumitomo
     Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi Limited, Westpac
     Bank Corp., Goldman Sachs & Co. and BNP Paribas.

     Notwithstanding the definition of Dealer Group, (i) for U.S. dollar and
     Canadian dollar information, the dealers that may be polled shall be
     JPMorgan Chase Bank, Citibank, N.A., Deutsche Bank AG, Merrill Lynch
     Capital Services, Inc., and Goldman Sachs & Co.; and (ii) for European
     currency information, the dealers that may be polled shall be those
     listed in clause (i) of this paragraph and, in addition, Barclays Bank
     PLC, Deutsche Bank AG, The Royal Bank of Scotland plc and BNP Paribas.

     "LBHI" means Lehman Brothers Holdings Inc.

     "LBSF" means Lehman Brothers Special Financing Inc.

     "Market Rates and Volatilities" means, in the case of interest rates and
     volatilities, the interest rates and volatilities obtained from the
     Telerate and Reuters screens where practicable and from polling the
     Dealer Group and, in the case of foreign exchange rates and volatilities
     and other pricing parameters, the foreign exchange rates and volatilities
     or pricing parameters obtained from polling the Dealer Group. In each
     case, for all rates, volatilities or other parameters obtained, at least
     five members of the Dealer Group shall be polled, the highest and lowest
     of such returns (including, in the case of interest rates and
     volatilities, the rates and volatilities obtained from the Telerate and
     Reuters screens, if any) shall be discarded and the simple mathematical
     average of the remaining values shall be used to perform the applicable
     determination.

     "Moody's" means Moody's Investors Service, Inc.

                                     B-26

<PAGE>

     "Person" means any individual, partnership, joint venture, firm,
     corporation, association, trust or other enterprise or any government or
     political subdivision or any agency, department or instrumentality
     thereof.

     "Relevant Rating Agencies" means, S&P and Moody's, or such of them as
     then assigns a financial program, counterparty or similar rating to Party
     A at Party A's request, or any other nationally recognized rating agency
     then rating Party A at Party A's request (each, individually, a Relevant
     Rating Agency).

     "S&P" means Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

     "Single A Quality" means, in the case of S&P, A, in the case of Moody's,
     A, in the case of Fitch, Inc., A, and, in the case of any other Relevant
     Rating Agency, a designation of similar quality.

     "Universal Business Day" means a day on which commercial banks are open
     for business (including dealings in foreign exchange and foreign currency
     deposits) in Frankfurt, London, New York, Tokyo and the city in which
     Party B's head or home office is located.

     (l) "Termination Currency" means United States Dollars ("USD").

     Section 34. Tax Representations.

(A)  Payer Tax Representation. For the purpose of Section 3(e) of this
     Agreement, Party A and Party B each make the following representations:

     It is not required by any applicable law, as modified by the practice of
     any relevant governmental revenue authority, of any Relevant Jurisdiction
     to make any deduction or withholding for or on account of any Tax from
     any payment (other than interest under Section 2(e), 6(d)(ii), or 6(e) of
     this Agreement) to be made by it to the other party under this Agreement.
     In making this representation, it may rely on (i) the accuracy of any
     representations made by the other party pursuant to Section 3(f) of this
     Agreement, (ii) the satisfaction of the agreement contained in Section
     4(a)(i) or 4(a)(iii) of this Agreement, and the accuracy and
     effectiveness of any document provided by the other party pursuant to
     Section 4(a)(i) or 4(a)(iii) of this Agreement, and (iii) the
     satisfaction of the agreement of the other party contained in Section
     4(d) of this Agreement, provided that it shall not be a breach of this
     representation where reliance is placed on clause (ii) and the other
     party does not deliver a form or document under Section 4(a)(iii) by
     reason of material prejudice to its legal or commercial position.

(B)  Payee Tax Representations. For the purpose of Section 3(f) of this
     Agreement, Party A makes the following representations:-

          (i)  The following representation applies to Party A:-

               Party A is a corporation organized under the laws of the State
               of Delaware.

                                     B-27

<PAGE>

     (ii) The following representation applies to Party B:-

          Party B is a trust that has not elected to be treated as a
          corporation for U.S. federal income tax purposes.

     Section 35. Agreement to Deliver Documents.

For the purpose of Section 4(a)(i) and Section 4(a)(ii) of this Agreement,
Party A and Party B each agree to deliver the following documents, as
applicable:-
     (a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>

                                           Form, Document                          Date by which            Covered by
       Party                               or Certificate                         to be Delivered          Section 3(d)
       required to                         --------------                         ---------------          ------------
       deliver document
       ----------------

       <S>                  <C>                                           <C>                                   <C>
       Party A              A complete and executed U.S. Internal         (i)  Before the first Payment         No
                            Revenue Service Form W-9 (or any successor    Date under this Agreement,
                            thereto), that eliminates U.S. federal        (ii) promptly upon reasonable
                            backup withholding tax on payments under      demand by Party B, and (iii)
                            this Agreement.                               promptly upon learning that
                                                                          any such Form previously
                                                                          provided by Party A has become
                                                                          obsolete or incorrect.

       Party B              A complete and executed U.S. Internal         (i)  Before the first Payment         No
                            Revenue Service Form W-9 (or any successor    Date under this Agreement,
                            thereto) and a complete and executed U.S.     (ii) promptly upon reasonable
                            Internal Revenue Service Form W-8BEN,         demand by Party A, and (iii)
                            W-8IMY, W-8ECI or W-9 (or any successor       promptly upon learning that
                            thereto) from each Certificateholder (and,    any such Form previously
                            where applicable, such forms from the         provided by Party B has become
                            beneficial owners of such Certificates) and   obsolete or incorrect.
                            in any case in which the Certificateholder
                            is eligible for the benefits of an income
                            tax treaty with the United States, a Form
                            W-8BEN including a

                                     B-28
<PAGE>

                                           Form, Document                          Date by which            Covered by
       Party                               or Certificate                         to be Delivered          Section 3(d)
       required to                         --------------                         ---------------          ------------
       deliver document
       ----------------

                            claim of treaty benefits under Part II,
                            claiming such benefits with respect
                            to all payments received with respect
                            to the Certificates, and with Part
                            III marked, in each case that eliminates
                            U.S. federal withholding tax and backup
                            withholding on payments under this
                            Agreement.

</TABLE>

     (b)  Other documents to be delivered are:

<TABLE>
<CAPTION>

                                  Form, Document                     Date by which                   Covered by
       Party                      or Certificate                     to be Delivered                 Section 3(d)
       required to                --------------                     ---------------                 ------------
       deliver document
       ----------------

       <S>                        <C>                                 <C>                            <C>
       Party A                    An opinion of counsel to Party A   Promptly after execution of          No
                                  substantially in the form of       this Agreement.
                                  Exhibit B to this Schedule.

       Party A                    An incumbency certificate with     Upon execution of this               Yes
                                  respect to the signatory of this   Agreement.
                                  Agreement.

       Party B                    An opinion of counsel to Party B   Promptly after execution of          No
                                  substantially in the form of       this Agreement.
                                  Exhibit C to this Schedule.

       Party B (with              An incumbency certificate with     Upon execution of this               Yes
       respect to                 respect to the signatory           Agreement.
       the Trustee)               of this Agreement.

       Party B (with              A certified copy of the            Upon execution of this               Yes
       respect to                resolution or resolutions or        Agreement (unless an
       the Trustee)               applicable Bylaws (the             Authorizing Resolution has
                                  "Authorizing Resolution") of the   previously been furnished by
                                  Board of Directors or loan         the Trustee to Party A)
                                  committee of the

                                     B-29
<PAGE>

                                  Form, Document                     Date by which                   Covered by
       Party                      or Certificate                     to be Delivered                 Section 3(d)
       required to                --------------                     ---------------                 ------------
       deliver document
       ----------------

                                  Trustee,certified by a secretary,   and, with respect to each Swap
                                  or an assistant secretary of the    Transaction not covered by a
                                  Trustee, pursuant to which the      previously furnished
                                  Trustee is authorized, on behalf    Authorizing Resolution,
                                  of the Trust, to enter into this    within five Business Days of
                                  Agreement and each Swap             the Trade Date.
                                  Transaction entered into under
                                  this Agreement.

       Party B                    A certified copy of the Trust       Upon execution of this              Yes
                                  Agreement and each amendment        Agreement and on the date of
                                  thereof.                            each amendment thereof.

</TABLE>

     Section 36. Miscellaneous.

     (a)  Addresses for Notices. For purpose of Section 10(a):

     Address for notices or communications to Party A:-

     Address:          Lehman Brothers Derivative Products Inc.
                       c/o Lehman Brothers Inc.
                       745 Seventh Avenue, 28th Floor
                       New York, New York  10019

     Attention:        Documentation Manager

     Telephone No.:    (212) 526-7187

     Facsimile No.:    (212) 526-7672

     Address for notices or communications to Party B:-

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

     Attention:         Corporate Trust

     Facsimile No.:     (212) 809-5459
     (b)  Process Agent. For the purpose of Section 13(c):-

                                     B-30
<PAGE>

     Party A appoints as its Process Agent: Not Applicable.

     Party B appoints as its Process Agent: Not Applicable.

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

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

     Party A is not a Multibranch Party.

     Party B is not a Multibranch Party.

     (e) Calculation Agent. The Calculation Agent is Party A. The failure of
Party A to perform its obligations as Calculation Agent shall not be construed
as an Event of Default or Termination Event.

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

     In the case of Party A, not applicable.

     In the case of Party B, not applicable.
     (g)  Credit Support Provider.

     Credit Support Provider means in relation to Party A: Not Applicable.

     Credit Support Provider means in relation to Party B: Not Applicable.
     (h) Limitation on Trustee Liability. In the absence of negligence,
willful misconduct or bad faith on the part of the Trustee, the Trustee shall
have no personal liability for the payment of any indebtedness or expenses of
Party B or be personally liable for the breach or any failure of any
obligation, representation, warranty or covenant made or undertaken by Party B
under this Transaction or the Trust Agreement within the scope of the
Trustee's discharge of its duties under this Transaction or the Trust
Agreement or for any amounts due under this Transaction from Party B, such
amounts to be paid solely from the assets of Party B in accordance with the
Trust Agreement.

     (i) Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York (without regard to choice of
law doctrine).

     (j) Jurisdiction. Section 13(b) is hereby amended by: (i) deleting in the
second line of subparagraph (i) thereof the word "non-"; and (ii) deleting the
final paragraph thereof.

     (k) Netting of Payments. Section 2(c)(ii) will not apply to all
Transactions.

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

     Section 37. Other Provisions.

     (a)  Credit Assignment Event.

                                     B-31
<PAGE>

     (i)  A "Credit Assignment Event" shall occur if at any time during the
          term of this Agreement, the Certificates cease to meet the Minimum
          Rating Requirement (as defined below) from both Moody's and S&P.
          Following the occurrence of a Credit Assignment Event, the rights
          and obligations of Party A under this Agreement and all Transactions
          hereunder shall automatically, and without any further action by any
          party, be deemed to have been assigned and delegated to LBSF,
          effective on the third Business Day following notification by Party
          A to Party B of such assignment and Party B expressly and
          irrevocably consents to such assignment and assumption, except that
          no such assignment and assumption shall occur at any time after the
          occurrence of any event of default under any master agreement
          between Party A and LBSF. As of and from the effective date of such
          assignment, LBSF shall succeed to all rights and obligations of
          Party A under this Agreement and all Transactions hereunder.

          "Minimum Rating Requirement" means (A) with respect to Moody's, a
          long-term credit rating of at least Baa3; and (B) with respect to
          S&P, long-term credit rating of at least BBB-.

     (ii) Party A represents that it has provided separate consideration to
          LBSF for the right to assign this Agreement and the Transactions
          hereunder to LBSF pursuant to clause (i), and Party B shall not owe
          Party A any termination or other payment upon any such assignment.

     (iii) Notwithstanding clauses (i) and (ii) above, no transfer or
          assignment payment shall be due to or owing from either Party A or
          Party B other than its obligations under the Transactions.

     (iv) Notwithstanding the foregoing, the assignment provisions of this
          paragraph shall not take effect if, at the time such assignment
          would be required, Party B shall have satisfied in full all of its
          payment obligations under Section 2(a) of this Agreement and shall
          at such time have no future payment obligations, whether absolute or
          contingent, under such Section.

     (v)  The assignment provisions of this paragraph shall not take effect
          if, at the time such assignment would be required, LBSF or its
          guarantor shall have a long-term credit rating lower than that
          assigned to the Certificates. In such case, Party A shall be
          permitted to assign its rights and obligations under this agreement,
          without the consent of any party, to an entity that has (or whose
          guarantor has) a long-term credit rating not lower than that
          assigned to the Certificates.

     (vi) Upon an assignment pursuant to this Part 5(a), a Trigger Event shall
          cease to constitute an Additional Termination Event.

     (vii) Upon the occurrence of a Credit Assignment Event, Party A shall
          provide notice to each Rating Agency within five Business Days.

     (b) Confirmation. Each Confirmation supplements, forms part of, and will
be read and construed as one with the Agreement. A form of Confirmation is set
forth as Exhibit A hereto.

     (c) Early Termination. Notwithstanding any other provision of this
Agreement, in the event of the occurrence of an Event of Default with respect
to Party A, Party B shall not be

                                     B-32
<PAGE>

entitled to designate an Early Termination Date unless directed to do so by a
majority of the holders of the Certificates. In addition, the Early
Termination Date so designated shall be at least five Business Days following
the date on which Party B receives such direction from a majority of the
holders of the Certificates.

     (d) No Bankruptcy Petition. Prior to the date that is one year and one
day after the date upon which the trust created under the Trust Agreement is
terminated in accordance with the terms thereof, Party A shall not institute
against, or join any other person in instituting against, the trust created
thereby, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any federal or state
bankruptcy or similar law.

     (e) Transfer. Section 7 is hereby amended by: (i) adding the words
"(which consent may not be unreasonably withheld)" after the word "consent" in
the second line thereof, (ii) adding the words "(and notice of the transferee
to)" after the word "of" in the third line thereof, (iii) adding the words
"and the consent of holders of 100% of the then outstanding Certificates, and
each Rating Agency shall have given its prior written confirmation that such
transfer will not result in a reduction or withdrawal of the then current
rating of the Certificates" after the word "party" in the third line thereof,
(iv) adding the words "(subject to providing written notice of the transferee
to the other party)" after the word "transfer" in the fourth and seventh line
thereof, (v) deleting the word "and" at the end of the sixth line thereof,
(vi) adding the word "and" after the words "Section 6(e)" in the eighth line
thereof and (vii) adding the following section (c) at the start of the ninth
line thereof "(c) unless Party A otherwise consents in its sole discretion, no
transfer may be made by Party B of all or part of its interest in this
Agreement unless the transferee has a Single A Quality financial program,
counterparty or similar rating from a Relevant Rating Agency." Party B shall
not consent to any transfer or assignment by Party A of its rights and
obligations hereunder unless holders of 100% of the outstanding Certificates
have consented to such assignment or transfer.

     (f) Commencement of Voluntary Bankruptcy. So long as Party A is solvent,
Party A shall not (i) admit in writing its inability generally to pay its
debts as they become due; (ii) make a general assignment, arrangement or
composition with or for the benefit of its creditors; (iii) institute a
proceeding seeking a judgment of insolvency or bankruptcy or any other relief
in respect of Party A under any bankruptcy or insolvency law or other similar
law affecting creditors' rights; (iv) pass a resolution for its winding-up,
official management or liquidation (other than pursuant to a consolidation,
amalgamation or merger); or (v) seek 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.

     (g) No Capital Contribution to Party A. Party A, LBHI and LBSF have each
acknowledged to and agreed with each other, and Party B hereby acknowledges,
that neither LBHI nor LBSF nor any Affiliate of Party A is under any
obligation whatsoever (whether express or implied) to contribute capital to
Party A. Party B represents and warrants to Party A that in executing and
delivering this Agreement, and performing its obligations hereunder, Party B
is relying on the credit of Party A alone, and not on the credit of any other
entity that may be affiliated with Party A.

                                     B-33
<PAGE>

     (h) Intention to Enter into a "Swap Agreement". Each of Party A and Party
B hereby acknowledges and agrees that this Agreement and all Additional Direct
Agreements and each Transaction hereunder or thereunder is intended to be a
"swap agreement" as that term is defined in the U.S. Bankruptcy Code (as
amended from time to time) and that the rights granted to each party under
Section 6 include a contractual right to terminate a "swap agreement" and to
offset and net out termination values and payments in conjunction therewith.

     (i) Waiver of Right to Trial by Jury. Each party hereby irrevocably
waives, to the fullest extent permitted by applicable law, any right it may
have to a trial by jury in respect of any suit, action or proceeding relating
to this Agreement or any Credit Support Document. Each party (i) certifies
that no representative, agent or attorney of the other party or any Credit
Support Provider has represented, expressly or otherwise, that such other
party would not, in the event of such a suit, action or proceeding, seek to
enforce the foregoing waiver and (ii) acknowledges that it and the other party
have been induced to enter into this Agreement and provide for any Credit
Support Document, as applicable, by, among other things, the mutual waivers
and certifications in this section.

     (j) Accuracy of Specified Information. Section 3(d) is hereby amended by
adding in the third line thereof after the word "respect" and before the
period the words "or, in the case of audited or unaudited financial
statements, a fair presentation, in all material respects, of the financial
condition of the relevant person."

     (k) Additional Representations. For purposes of Section 3 of this
Agreement, the following shall be added, immediately following paragraph (f)
thereof:

     (g)  No Agency. It is entering into this Agreement and each Transaction
          as principal (and not as agent or in any other capacity, fiduciary
          or otherwise); provided, that the Trustee is acting not in its
          individual capacity but solely as Trustee for Party B.

     (h)  Eligible Contract Participant. It is an "eligible contract
          participant" as that term is defined in the Commodity Exchange Act,
          as amended.

     (i)  Non-Reliance. Party A is acting for its own account, and it has made
          its own independent decisions to enter into that Transaction and as
          to whether that Transaction is appropriate or proper for it based
          upon its own judgment and upon advice from such advisers as it has
          deemed necessary. Party B is entering into the Transaction pursuant
          to the terms of the Trust Agreement. Neither party is relying on any
          communication (written or oral) of the other party as investment
          advice or as a recommendation to enter into that Transaction; it
          being understood that information and explanations related to the
          terms and conditions of a Transaction shall not be considered
          investment advice or a recommendation to enter into that
          Transaction. No communication (written or oral) received from the
          other party shall be deemed to be an assurance or guarantee as to
          the expected results of that Transaction.

                                     B-34
<PAGE>

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

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

     (l) No Setoff to Party A Affiliates. Party B agrees that all payments
required to be made by it under this Agreement shall be made without setoff or
counterclaim for, and that it shall not withhold payment or delivery under
this Agreement in respect of, any default by any Affiliate of Party A under
any Other Agreement or any amount relating to any Other Agreement between
Party B and such Affiliate of Party A or between an Affiliate of Party B and
such Affiliate of Party A. As used herein, "Other Agreement" means any
agreement, including, but not limited to, (i) any transaction (including an
agreement with respect thereto) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
currency option or any other similar transaction (including any option with
respect to any of these transactions), (ii) any liability, claim or obligation
(whether present or future, contingent or otherwise), or (iii) any combination
of one or more of the transactions described above. This paragraph (l) shall
supersede any setoff right contained in any Other Agreement or any agreement
relating to any Other Agreement between Party B and any such Affiliate of
Party A or between an Affiliate of Party B and such Affiliate of Party A.

     (m) Pledge of Swap Payment Rights and Other Property by Party A. Party A
has pledged its rights to receive payments under this Agreement and under
certain other swap agreements entered into or to be entered into by Party A
("Other Swap Agreements"), and has pledged or will pledge certain other
property for the benefit of Party B and the counterparties under such Other
Swap Agreements, ratably to secure Party A's obligations to make certain
payments to Party B and such counterparties under this Agreement and the Other
Swap Agreements. To the extent of any payments made by the provider(s) of any
Qualified Credit Enhancement (as defined in Party A's Operating Guidelines)
for the benefit of Party B, such provider(s) will be subrogated to the rights
of Party B under this Agreement; provided that such provider(s) shall not be
entitled to enforce such subrogation hereunder until all obligations of Party
A to Party B under this Agreement shall have been paid in full.

     (n) Partial Unwind. Section 7 of the Series Supplement and all other
provisions of the Trust Agreement relating to the partial unwind of the
Underlying Securities shall apply to the Certificates; provided, however, only
Lehman Brothers Inc. or any affiliate thereof which is a beneficial owner of a
Certificate will be permitted under the Trust Agreement to enter into a
Partial Unwind Agreement.

     (o) Notices. For the purposes of subsections (iii) and (v) of Section
12(a), the date of receipt shall be presumed to be the date sent if sent on a
Local Business Day or, if not sent on a Local Business Day, the date of
receipt shall be presumed to be the first Local Business Day following the
date sent.

                                     B-35
<PAGE>

     (p) Service of Process. The penultimate sentence of Section 13(c) shall
be amended by adding the following language at the end thereof: "if permitted
in the jurisdiction where the proceedings are initiated and in the
jurisdiction where service is to be made."

     (q) Additional Definitions.

     "Certificates" shall mean Repackaged American General Floating Rate Trust
     Certificates, Series 2003-1 Trust Certificates, due July 15, 2025, issued
     pursuant to the Trust Agreement.

     "Liquidation Proceeds" shall have the meaning specified therefor in the
     Trust Agreement.

     "Market Agent" shall mean Lehman Brothers Inc. as market agent of the
     Trust under the Market Agent Agreement.

     "Market Agent Agreement" shall mean the Market Agent Agreement, dated
     July 2, 2003, between the Market Agent and the Trust.

     "Trigger Event Special Redemption Date" shall have the meaning specified
     therefor in the Trust Agreement

     "Trust Agreement" shall mean, collectively, the Series Supplement (the
     "Series Supplement"), dated as of July 2, 2003, which supplements and
     amends the Standard Terms for Trust Agreements ("Standard Terms"), dated
     as of January 16, 2001, each between Lehman ABS Corporation, as
     depositor, and U.S. Bank Trust National Association, as trustee, as the
     same may be amended or supplemented from time to time as provided
     therein.

     "Trustee" shall mean U.S. Bank Trust National Association, as Trustee of
     Party B, and any additional or successor trustee of Party B.

     "Underlying Securities" shall have the meaning specified therefor in the
     Trust Agreement.

     "Underlying Acceleration Termination" shall mean the occurrence of an
     event of default with respect to the Underlying Securities (other than an
     Underlying Securities Termination Default), which event results in the
     acceleration and final payment of the Underlying Securities.

     "Underlying Securities Termination Default" shall mean the occurrence of
     any of the following events: (i) the failure by the Underlying Securities
     Issuer to pay interest or principal with respect to the Underlying
     Securities within any applicable grace period after the same shall become
     due or (ii) any event of bankruptcy, insolvency or reorganization that
     would be an event of default under the Underlying Securities Indenture.

                                     B-36
<PAGE>

     Terms used herein and not otherwise defined shall have the meaning
     ascribed to them in the Trust Agreement.

                                     B-37
<PAGE>

     The parties executing this Schedule have executed the Master Agreement
and have agreed as to the contents of this Schedule.

                                  LEHMAN BROTHERS DERIVATIVE PRODUCTS INC.

                                  By:__________________________________
                                      Name:
                                      Title:

                                  REPACKAGED AMERICAN GENERAL FLOATING RATE
                                  TRUST CERTIFICATES,
                                    SERIES 2003-1 TRUST

                                  By:   U.S. Bank Trust National Association,
                                        not in its individual capacity but
                                        solely as Trustee under the
                                        Trust Agreement

                                  By:_________________________________
                                     Name:
                                     Title:

                                     B-38
<PAGE>

                             EXHIBIT A TO SCHEDULE
                             ---------------------

                             FORM OF CONFIRMATION

                                 Confirmation
                                 ------------

DATE:       July 2, 2003

TO:         Repackaged American General Floating Rate Trust Certificates,
            Series 2003-1 Trust

FROM:       Lehman Brothers Derivative Products Inc.

SUBJECT:    INTEREST RATE SWAP TRANSACTION

To U.S. Bank Trust National Association, as Trustee:

          The purpose of this communication is to set forth the terms and
conditions of the transaction entered into on the Trade Date referred to below
(the "Transaction"), between Lehman Brothers Derivative Products Inc. ("Party
A") and Repackaged American General Floating Rate Trust Certificates, Series
2003-1 Trust ("Party B"), a trust created under the laws of the State of New
York pursuant to that certain Series Trust Agreement (the "Series
Supplement"), dated July 2, 2003, which incorporates the Standard Terms for
Trust Agreements (collectively, the "Trust Agreement"). This communication
constitutes a "Confirmation" as referred to in the Master Agreement specified
below.

          1. This Confirmation supplements, forms a part of and is subject to
the 1992 ISDA Master Agreement (Multicurrency - Cross Border), (the "Master
Agreement") (including the Schedule thereto), dated as of July 2, 2003,
between Party A and Party B. All provisions contained in, or incorporated by
reference to, such Master Agreement shall govern this Confirmation except as
expressly modified below.

          2. This communication incorporates the definitions and provisions
contained in the 2000 ISDA Definitions (as published by the International
Swaps and Derivatives Association, Inc.) (the "Definitions"). In addition,
certain capitalized terms used herein but not defined herein shall have the
meaning ascribed to them in the Trust Agreement. In the event of any
inconsistency between this Confirmation and the Definitions or Master
Agreement, this Confirmation shall prevail.

          3. The terms of the particular Transaction to which this
communication relates are as follows:

Party A:                         Lehman Brothers Derivative Products Inc.

                                    B-A-1
<PAGE>

Party B:                         Repackaged American General Floating Rate
                                 Trust Certificates, Series 2003-1 Trust

Trade Date:                      June 20, 2003

Effective Date:                  July 2, 2003

Scheduled Termination Date:      July 15, 2025, subject to adjustment in
                                 accordance with the Modified Following
                                 Business Day Convention.

Calculation Agent:               Party A

Business                         Days: Any day (which is neither a Saturday
                                 nor a Sunday) nor a day on which banks in New
                                 York City and the place of payment in respect
                                 of the Underlying Securities are authorized
                                 or required to be closed, subject to the
                                 Modified Following Business Day Convention.

                                 The "Modified Following Business Day
                                 Convention" shall apply if the specified day
                                 is not a Business Day and shall mean the
                                 first following day that is a Business Day
                                 unless that day falls in the next calendar
                                 month, in which case that date will be first
                                 preceding day that is a Business Day.

Notional Amount:                 $10,000,000, subject to reduction as a result
                                 of an early termination of all or a portion
                                 of the Transaction. The Notional Amount shall
                                 at all times equal the outstanding principal
                                 amount of the Certificates. See "Early
                                 Termination Payment" below

Party A Floating Rate
Payer Payment Amounts:

     Party A Payment Dates:      The 15th day of each January, April, July and
                                 October during the term of this Transaction,
                                 commencing in July 2003 and ending on July
                                 15, 2025, subject to adjustments in
                                 accordance with the Modified Following
                                 Business Day Convention.

     Party A Floating Rate
     for the Initial
     Calculation Period:         1.42054% (inclusive of the Floating Rate
                                 Spread)

                                    B-A-2
<PAGE>

     Party A Floating
     Rate Option:                USD-LIBOR-BBA (Telerate Page 3750)

     Designated Maturity:        Three Months

     Party A Floating Rate
     Spread:                     plus 0.30%

     Party A Day Count
     Fraction:                   Actual/360

     Reset Dates:                The first day of each Calculation Period.

     Other:                      Party A will have no obligation to make a
                                 Party A Floating Rate Payment Amount unless
                                 and until Party B has made the related
                                 payment, if any, to Party A.

Party B Fixed Rate Payment Amounts:

     Party B Fixed Rate
     Payment Amounts:            Any amounts received by Party B in respect of
                                 interest on the Underlying Securities.

     Party B Payment Dates:      Any date on which distributions are received
                                 by Party B in respect of interest on the
                                 Underlying Securities, commencing in July
                                 2003.

     Underlying Securities:      Issuer:            American General Corporation

                                 Maturity Date:     July 15, 2025

                                 Coupon:            7 1/2%

                                 Day Count:         30/360

                                 Payment Dates:     The  15th day of each
                                                    January and July
                                                    (subject to applicable
                                                    grace periods) commencing
                                                    in July 2003 and ending
                                                    on the Final Scheduled
                                                    Distribution Date

     Other:                      In the event of a discrepancy between the
                                 Party B Fixed Rate Payment Amounts due in
                                 respect of any Calculation Period and the
                                 interest amount payable on the Underlying
                                 Securities for the related period (as
                                 calculated in accordance with the terms of
                                 the Underlying Securities), the terms of the
                                 Underlying

                                    B-A-3
<PAGE>

                                 Securities shall govern the calculation of
                                 the Party B Fixed Rate Payment Amount for
                                 such Calculation Period.

Early Termination Payment:       Section 6(e) of the Master Agreement is
                                 hereby deleted, other than with respect to
                                 Section 6(e)(iv) and 6(e)(v), and replaced
                                 with the following:

                                 (e) Payments on Early Termination.

                                 (i) If notice is given designating an Early
                                 Termination Date in respect of a portion of
                                 the Notional Amount equal to the Partial
                                 Unwind Amount in connection with the exercise
                                 by a Certificateholder of the partial unwind
                                 provisions of Section 7 of the Series
                                 Supplement, Party A and such exercising
                                 Certificateholder shall agree in accordance
                                 with such Section 7 of the Series Supplement
                                 on the termination payment to be paid by
                                 either such party on such Early Termination
                                 Date; provided, however, that under no
                                 circumstances will such termination payment
                                 be paid by Party B or the assets of Party B

                                 (ii) If an Early Termination Date is
                                 designated in respect of the entire Notional
                                 Amount of the Transaction, Market Quotation
                                 and Second Method shall be used to calculate
                                 any termination payments owing by either
                                 party under Section 6(e) of the Master
                                 Agreement.

                                 (iii) No termination payment shall be payable
                                 by Party B to Party A following the
                                 occurrence of a Special Termination Event. a
                                 "Special Termination Event" is an Early
                                 Termination event caused by the occurrence of
                                 (A) an event specified in Section 5(a)(i) of
                                 the Master Agreement, (B) an event specified
                                 in Section 5(a)(vii) of the Master Agreement
                                 or (C) a Trigger Event.

                                 (iv) No Early Termination Payment shall be
                                 payable by either party upon the occurrence
                                 of an Underlying Acceleration Termination
                                 unless another Early Termination Event shall
                                 have occurred on or prior to the Early
                                 Termination Date for such Underlying
                                 Acceleration Termination, in

                                    B-A-4
<PAGE>

                                 which case, the Early Termination Payment, if
                                 any, for such other Early Termination Event,
                                 shall be payable.

Amendment:                       Section 9(b) of the Master Agreement is
                                 hereby deleted and replaced with the
                                 following:

                                 No amendment to this Agreement shall be
                                 effective unless each of the parties hereto
                                 shall have consented to such amendment in
                                 writing. Notwithstanding anything contained
                                 herein to the contrary, in connection with
                                 any sale of additional Underlying Securities
                                 to the Trust pursuant to Section 3(d) of the
                                 Series Supplement, the parties hereto shall
                                 enter into a Supplement to this Confirmation
                                 whereby the Notional Amount shall be
                                 increased by an amount equal to the principal
                                 amount of the additional Underlying
                                 Securities sold to the Trust.

4. Other Terms

(a)  Interpretation. Each reference to the singular shall include the plural
and vice versa.

(b)  Transfer. Neither party may transfer this Transaction or any interest in
or under this Transaction without the prior written consent of the
nontransferring party and the consent of holders of 100% of the then
outstanding Certificates, and each Rating Agency shall have given its prior
written confirmation that such transfer will not result in a reduction or
withdrawal of the then current rating of the Certificates. Any purported
transfer without such consents and such confirmation will be void.

(c) Limitation on Trustee Liability. In the absence of negligence, willful
misconduct or bad faith on the part of the Trustee, the Trustee shall have no
personal liability for the payment of any indebtedness or expenses of Party B
or be personally liable for the breach or any failure of any obligation,
representation, warranty or covenant made or undertaken by Party B under this
Transaction or the Trust Agreement within the scope of the Trustee's discharge
of its duties under this Transaction or the Trust Agreement or for any amounts
due under this Transaction from Party B, such amounts to be paid solely from
the assets of Party B in accordance with the Trust Agreement.

5. Account Details

                 Payments to Party A

                   Account for payments: JPMorgan Chase Bank

                                         ABA # 021000021
                                         A/C # 066143543
                                         For the account of:  Lehman Brothers
                                         Derivative Products Inc.

                                    B-A-5
<PAGE>

                 Payments to Party B

                                                 Account for payments:  U.S.
                                         Bank National Association,
                                         Minneapolis, MN
                                         ABA# 091 000 022 For Credit to A/C
                                         1801 2116 7365 FBO: U.S. Bank Trust
                                         N.A. For further Credit to A/C
                                         4730017 OBI = CBTC 2003-1 AMERICAN
                                         GENERAL A/C, 77135800

                                    B-A-6
<PAGE>

          Please confirm that the foregoing correctly sets forth the terms of
our agreement by executing the copy of this Confirmation enclosed for that
purpose and returning it to us.

                                    Yours sincerely,

                                    LEHMAN BROTHERS DERIVATIVE PRODUCTS INC.

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

Confirmed as of the date first written:

REPACKAGED AMERICAN GENERAL FLOATING RATE TRUST CERTIFICATES,
 SERIES 2003-1 TRUST

By:    U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
       individual capacity but solely as
       Trustee under the Trust Agreement

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

                                    B-A-7
<PAGE>

                             EXHIBIT B TO SCHEDULE
                             ---------------------

                    FORM OF OPINION OF COUNSEL FOR PARTY A

                                                      July 2, 2003
To the Persons listed on
Schedule A hereto

            Re:   Lehman ABS Corporation
                  Repackaged American General Floating Rate
                  Trust Certificates, Series 2003-1
                  ------------------------------------------------

Ladies and Gentlemen:

     We have acted as special counsel in connection with (i) the transfer of
$10,000,000 aggregate principal amount of 7 1/2% Notes due 2025 (the
"Underlying Securities") of American General Corporation, by Lehman ABS
Corporation ("LABS") to the Repackaged American General Floating Rate Trust
Certificates, Series 2003-1 Trust (the "Trust") established by LABS and (ii)
the issuance by the Trust on July 2, 2003 (the "Closing Date") of the
Repackaged American General Floating Rate Trust Certificates, Series 2003-1
(the "Certificates"), issued pursuant to a standard terms for trust
agreements, dated as of January 16, 2001 (the "Standard Terms"), between LABS
and U.S. Bank Trust National Association ("U.S. Bank"), as trustee (the
"Trustee"), as supplemented by a series supplement thereto, dated as of July
2, 2003 (the "Series Supplement" and, together with the Standard Terms, the
"Trust Agreement"), between LABS and the Trustee. Capitalized terms defined in
the Trust Agreement and used but not otherwise defined herein are used herein
as so defined.

     In connection with this opinion, we have examined and are familiar with
originals or copies certified or otherwise identified to our satisfaction of:
(i) the Trust Agreement; (ii) a securities account control agreement dated as
of July 2, 2003 between LABS and U.S. Bank, as trustee and securities
intermediary; (iii) the form of the Certificates; (iv) an ISDA Master
Agreement, dated as of July 2, 2003 (the "ISDA Master Agreement"), between the
Trust and Lehman Brothers Derivative Products Inc. (the "Swap Counterparty"),
dated as of July 2, 2003, a schedule thereto dated July 2, 2003 (the
"Schedule"), between the Trust and the Swap Counterparty and a confirmation
thereunder dated July 2, 2003 (the "Confirmation" and, together with the ISDA
Master Agreement and the Schedule, the "Swap Agreement"); (v) an underwriting
agreement dated June 20, 2003 between LABS and Lehman, as underwriter; and
(vi) such corporate records, agreements, documents and other instruments, and
such certificates or comparable documents of public officials and of officers
and representatives of LABS, and have made such inquiries of such officers and
representatives, as we have deemed relevant and necessary as a basis for the
opinions hereinafter set forth.

                                    B-B-1
<PAGE>

     As to all questions of fact material to this opinion that have not been
independently established, we have relied upon certificates or comparable
documents of officers and representatives of LABS, the Swap Counterparty and
the Trustee and upon the representations and warranties of the Swap
Counterparty and the Trust contained in the Swap Agreement. We have also
assumed (i) the due organization and valid existence of the Swap Counterparty
and the Trustee, (ii) that the Swap Counterparty and the Trustee have all
requisite corporate power and authority to execute and deliver the Swap
Agreement and to perform their obligations thereunder, (iii) the due and valid
authorization by all necessary corporate action of the Swap Counterparty and
the Trustee of the execution, delivery and performance by them of the Swap
Agreement, (iv) the due and valid execution and delivery by the Swap
Counterparty and the Trustee of the Swap Agreement, (v) that the Swap
Agreement constitutes the legal, valid and binding obligation of the Swap
Counterparty and the Trust, enforceable against the Swap Counterparty and the
Trust in accordance with its terms and (vi) the absence of any agreement or
understanding among the parties other than those contained in the Swap
Agreement or otherwise called to our attention.

     Based on the foregoing, and subject to the qualifications stated herein,
we are of the opinion that:

1.   The execution and delivery by the Swap Counterparty of the Swap Agreement
     and the performance by Swap Counterparty of its obligations thereunder
     will not conflict with, constitute a default under, or violate any New
     York, Delaware corporate or federal law or regulation (other than federal
     and state securities or blue sky laws, as to which we express no opinion
     in this paragraph).

2.   The Swap Agreement is not subject to regulation under the Commodity
     Exchange Act, as amended, or the rules and regulations thereunder.

                                    * * * *

     We are members of the bar of the State of New York, and we do not express
any opinion as to any laws other than the law of the State of New York, the
General Corporation Law of the State of Delaware and the federal laws of the
United States.

     This opinion letter is not intended to be employed in any transaction
other than the one described above and is being delivered to you on the
understanding that neither it nor its contents may be published, communicated
or otherwise made available, in whole or in part, to any other party or
entity, without in each instance, our specific prior written consent.

                                              Very truly yours,

                                    B-B-2
<PAGE>

                                  Schedule A

Lehman ABS Corporation
745 Seventh Avenue
New York, New York  10019

Lehman Brothers Inc.
745 Seventh Avenue
New York, New York  10019

Lehman Brothers Derivative Products Inc.
745 Seventh Avenue
New York, New York  10019

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

                                    B-B-3
<PAGE>

                                                              July 2, 2003

To the Addressees Listed on the Attached Schedule I

Ladies and Gentlemen:

          I have acted as counsel to Lehman Brothers Derivative Products Inc.,
a Delaware corporation ("Party A"), and am familiar with matters pertaining to
the execution and delivery of the 1992 ISDA Master Agreement
(Multicurrency--Cross Border) (the "Master Agreement") dated as of July 2,
2003 between Party A and the Repackaged American General Floating Rate Trust
Certificates, Series 2003-1 Trust ("Party B"). The Master Agreement is
supplemented by a confirmation of swap transaction dated as of July 2, 2003
between Party A and Party B (the "Confirmation"), and the Master Agreement and
the Confirmation together constitute one agreement.

          In connection with this opinion, I have examined or have had
examined on my behalf an executed copy of the Master Agreement and the
Confirmation, certificates and statements of public officials and officers
and/or employees of Party A and such other agreements, instruments, documents
and records as I have deemed necessary or appropriate for the purposes of this
opinion.

          Based upon the foregoing, but subject to the assumptions,
exceptions, qualifications and limitations hereinafter expressed, I am of the
opinion that:

          1. Party A is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware.

          2. The execution, delivery and performance of the Master Agreement
and the Confirmation are within the corporate power of Party A, have been duly
authorized by all necessary corporate action and do not conflict with any
provision of its certificate of incorporation or by-laws.

          3. The Master Agreement and the Confirmation have been duly executed
and delivered by Party A and constitute legally valid and binding obligations
of Party A enforceable against it in accordance with their respective terms.

                                    B-B-4
<PAGE>

          The foregoing opinions are subject to the following assumptions,
exceptions, qualifications and limitations:

          A. My opinion in paragraph 3 above is subject to the effect of any
bankruptcy, insolvency, reorganization, receivership, moratorium or similar
laws affecting the enforcement of creditors' rights generally (including,
without limitation, the effect of statutory or other laws regarding fraudulent
or other similar transfers) and general principles of equity, regardless of
whether enforceability is considered in a proceeding in equity or at law.

          B. I am a member of the Bar of the State of New York and render no
opinion on the laws of any jurisdiction other than the laws of the State of
New York, the federal laws of the United States of America and the General
Corporation Law of the State of Delaware.

          C. My opinions are limited to the present laws and to the facts as
they presently exist and no opinion is to be inferred or implied beyond the
matters expressly so stated. I assume no obligation to revise or supplement
this opinion should the present laws of the jurisdictions referred to in
paragraph B above be changed by legislative action, judicial decision or
otherwise.

          D. This letter is rendered to you in connection with the Master
Agreement and the Confirmation and the transactions related thereto and may
not be relied upon by any other person, entity or agency or by you in any
other context or for any other purpose, except that Sidley Austin Brown & Wood
LLP, counsel to Party A, may rely on this opinion in connection with an
opinion to be rendered by them of even date herewith. This letter may not be
quoted in whole or in part, nor may copies thereof be furnished or delivered
to any other person, without the prior written consent of Lehman Brothers
Derivative Products Inc., except that you may furnish copies hereof (i) to
your independent auditors and attorneys, (ii) to any United States, state or
local authority having jurisdiction over you or over Party A, (iii) pursuant
to the order of any legal process of any court of competent jurisdiction or
any governmental agency, and (iv) in connection with any legal action arising
out of the Master Agreement or the Confirmation.

          E. I have assumed with your permission (i) the genuineness of all
signatures by each party other than Party A, (ii) the authenticity of
documents submitted to me as originals and the conformity to authentic
original documents of all documents submitted to me as copies, and (iii) the
due execution and delivery, pursuant to due authorization, of the Master
Agreement and the Confirmation by each party thereto other than Party A.

                                     Very truly yours,

                                    B-B-5
<PAGE>

                                  SCHEDULE I

Moody's Investors Service, Inc.
99 Church Street
New York, New York  10007

Standard and Poor's, a
    Division of The McGraw-Hill Companies, Inc.
55 Water Street
New York, New York  10041

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

New York Stock Exchange, Inc.
20 Broad Street
New York, New York  10005

                                    B-B-6
<PAGE>

                             EXHIBIT C TO SCHEDULE
                             ---------------------
                    FORM OF OPINION OF COUNSEL FOR PARTY B

         July 2, 2003

                                          Standard and Poor's, a Division of
Lehman Brothers Inc.                      The McGraw-Hill Companies, Inc.
745 Seventh Avenue                        55 Water Street
New York, New York 10019                  New York, New York 10041

Lehman ABS Corporation                    Moody's Investors Service, Inc.
745 Seventh Avenue                        99 Church Street
New York, New York 10019                  New York, New York 10007

         Re:  Repackaged American General
              Floating Rate Trust Certificates,
              Series 2003-1 Trust (the "Trust" or the Issuer")
              -------------------------------------------------

Dear Ladies and Gentlemen:

          We have acted as special counsel to U.S. Bank Trust National
Association as trustee (the "Trustee") in connection with a Standard Terms For
Trust Agreements, dated as of January 16, 2001 (as supplemented by the Series
Supplement, Series 2003-1 dated as of July 2, 2003, and collectively referred
to herein as the "Trust Agreement"), between Lehman ABS Corporation, a
Delaware corporation (the "Depositor") and the Trustee. Pursuant to the Trust
Agreement, the Trust shall issue certain Certificates on the Closing Date (the
"Securities").

          For purposes of giving the opinion hereinafter set forth, we have
examined executed or conformed counterparts, or copies otherwise proved to our
satisfaction, of the Trust Agreement, the Securities, the Securities Account
Control Agreement dated as of the date hereof (the "Control Agreement") among
the Depositor, the Trustee and U.S. Bank Trust National Association, as
securities intermediary (the "Securities Intermediary") and the ISDA Master
Agreement between the Trust and Lehman Brothers Derivative Products Inc. (the
"Swap Counterparty"), the Schedule thereto and the Confirmation thereunder,
each dated as of the date hereof (collectively, the "Swap Agreement", which
together with the Trust Agreement, the Securities, and the Control Agreement
are hereinafter collectively referred to herein as the "Documents").
Capitalized terms used and not otherwise defined herein shall have the
respective meanings ascribed thereto in the Documents, as applicable.

          We have also obtained or have been furnished with, and have relied
exclusively upon, the Trust Permit and the Charter of the Office of the
Comptroller of the Currency in rendering this opinion. We have made no other
investigations or examinations in rendering this opinion, and our opinions
expressed herein are solely in reliance on the aforementioned documents and on
the Documents. With respect to all documents examined by us, we have assumed
that (i) all signatures on documents examined by us are genuine, (ii) all
documents submitted to us as originals are authentic, and (iii) all documents
submitted to us as copies

                                    B-C-1
<PAGE>

conform with the original copies of those documents.

          For the purpose of this opinion, we have assumed (i) the legal
capacity for all purposes relevant hereto of all natural persons, (ii) the due
authorization, execution and delivery by all parties thereto of all documents
examined by us, (iii) that each party to the Documents (other than the Trustee
and the Securities Intermediary) has the power and authority to enter in and
perform all of its obligations thereunder, (iv) that the Documents are the
legal, valid and binding obligations of the Issuer enforceable against the
Issuer in accordance with their terms, and (v) that the Issuer is an "eligible
contract participant" as that term is defined in the Commodity Exchange Act.

          Based upon the foregoing, and having regard to legal considerations
which we deem relevant, we are of the opinion that:

          1. The Trustee is a national banking association with trust powers
validly existing, duly organized and in good standing under the laws of the
United States of America. The Trustee has all requisite power to execute and
deliver the Documents, perform its obligations thereunder, and to authenticate
the Securities. The Securities Intermediary has all requisite power to execute
and deliver the Control Agreement and to perform its obligations thereunder;

          2. The Documents have been duly executed and delivered by the
Trustee and the Control Agreement has been duly executed and delivered by the
Securities Intermediary;

          3. The Securities have been authenticated by a duly authorized
signatory of the Trustee; and

          4. The Trust Agreement and the Control Agreement each constitutes
the legal, valid and binding obligation of the Trustee, enforceable against
the Trustee in accordance with its terms. The Swap Agreement constitutes the
legal, valid and binding obligation of the Trustee on behalf of the Trust,
enforceable against the Trustee on behalf of the Trust in accordance with its
terms. The Control Agreement constitutes the legal, valid and binding
obligation of the Securities Intermediary, enforceable against the Securities
Intermediary in accordance with its terms.

          The opinions set forth above are subject to the following
qualifications and exceptions:

          (a) Our opinions in paragraph 4 above are subject to the effect of
applicable receivership, conservatorship, insolvency, reorganization,
moratorium, fraudulent transfer or similar laws of general application
affecting creditors' or secured creditors' rights.

          (b) Our opinions in paragraph 4 above are subject to the effect of
general principles of equity, including, without limitation, concepts of
materiality, diligence, reasonableness, good faith and fair dealing, election
of remedies, estoppels and other similar doctrines affecting the
enforceability of agreements generally in any proceeding in equity or at law.

                                    B-C-2
<PAGE>

          (c) The enforceability of provisions in the Documents to the effect
that terms may not be waived or modified except in writing may be limited
under certain circumstances.

          (d) The availability of specific performance, injunctive relief and
other equitable remedies is subject to the discretion of the tribunal before
which any proceeding therefor may be brought.

          (e) We express no opinion as to the enforceability of provisions of
the Documents to the extent they contain forum selection provisions or waivers
of any constitutional rights or remedies.

          (f) We express no opinion as to the enforceability of provisions of
the Documents to the extent they contain cumulative remedies to the extent
such cumulative remedies purport to compensate, or would have the effect of
compensating, the party entitled to the benefits thereof in an amount in
excess of the actual loss suffered by such party.

          (g) We express no opinion as to the enforceability of provisions of
the Documents to the extent they contain remedies that are determined to
result in a penalty, or otherwise to result in a recovery that is determined
to be unreasonable in relation to the actual damages or grossly
disproportionate to the actual damages suffered.

          (h) We express no opinion with respect to (i) the compliance with,
or the effect of non-compliance with, any federal or state securities laws or
regulations, the Commodity Exchange Act, as amended, or the rules and
regulations of the Commodity Futures Trading Commission promulgated
thereunder, (ii) the creation, validity, perfection or priority of any
security interest granted under any Document, (iii) any indemnification or
contribution provision under any Document or (iv) Section 6(e) of the ISDA
Master Agreement insofar as it relates to the amount of damages payable by a
party upon termination.

          The foregoing opinions are limited to matters involving the laws of
the State of New York and the federal laws of the United States of America. We
express no opinion as to any matter other than as expressly set forth above,
and no other opinion may be implied or interpreted herefrom. Our opinions are
rendered only with respect to such laws, and the rules, regulations and orders
thereunder, that are currently in effect, and we disclaim any obligation to
advise you of any change in law or fact that occurs after the date hereof.

          This letter is furnished by us solely for your benefit in connection
with the transactions referred to in the Documents and may not be circulated
to, or relied upon by, any other person without our prior written consent.

                                  Sincerely,

                                    B-C-3EXHIBIT 10.28

                          INDEMNIFICATION AGREEMENT

      This Agreement is made  effective as of April  1, 2003, by and  between
 Sport Supply Group, Inc., a Delaware  corporation (the "Company"), and  Carl
 Harnick ("Director").

                             W I T N E S S E T H:

      WHEREAS, public  companies have  experienced increasing  difficulty  in
 obtaining directors' and officers' liability insurance, significantly higher
 premiums than had historically been charged, and reductions in the  coverage
 of such insurance; and

      WHEREAS, although the Company currently maintains such insurance, there
 can be no assurance that such insurance will be available to the Company and
 Director in the future, and that the cost of such insurance, if  obtainable,
 may not be acceptable to the Company; and

      WHEREAS, the  Company, in  order  to induce  Director  to serve  or  to
 continue to  serve the  Company, has  agreed to  provide Director  with  the
 benefits contemplated by this Agreement;

      NOW,  THEREFORE,  in   consideration  of   the  promises,   conditions,
 representations, and warranties set forth  herein, the Company and  Director
 hereby agree as follows:

      1.   Definitions.  The following terms, as used herein, shall have  the
 following respective meanings:

           "Change in Control" shall  be deemed to have  occurred if (i)  any
      "person" (as  such term  is used  in Sections  13(d) and  14(d) of  the
      Securities Exchange Act of  1934, as amended  (the "Act")), other  than
      Emerson Radio Corp. (including all of  its successors and assigns,  and
      any stockholder of Emerson Radio  Corp. receiving the Company's  common
      stock as a result  of a pro rata  distribution of the Company's  Common
      Stock made by  Emerson Radio  Corp.) or  a trustee  or other  fiduciary
      holding securities under an employee benefit  plan of the Company or  a
      corporation owned directly  or indirectly  by the  stockholders of  the
      Company in substantially  the same  proportions as  their ownership  of
      stock of the Company, is or becomes the "beneficial owner" (as  defined
      in Rule 13d-3 under the Act), directly or indirectly, of securities  of
      the Company  representing  20%  or  more  of  the  total  voting  power
      represented by the Company's  then outstanding voting securities,  (ii)
      during any  period of  two consecutive  years, individuals  who at  the
      beginning of  such period  constitute the  Board  of Directors  of  the
      Company and any new director whose  election by the Board of  Directors
      or nomination for election by  the Company's stockholders was  approved
      by a vote of at least two-thirds  (2/3) of the directors then still  in
      office who either  were directors  at the  beginning of  the period  or
      whose election or nomination for  election was previously so  approved,
      cease, for  any  reason, to  constitute  a  majority of  the  Board  of
      Directors, (iii) the stockholders  of the Company  approve a merger  or
      consolidation of the Company with any  other corporation, other than  a
      merger or consolidation that would result  in the voting securities  of
      the  Company  outstanding  immediately  prior  thereto  continuing   to
      represent (either by remaining outstanding  or by being converted  into
      voting securities of the  surviving entity) at least  80% of the  total
      voting power represented  by the voting  securities of  the Company  or
      such surviving  entity outstanding  immediately  after such  merger  or
      consolidation, or (iv) the stockholders of  the Company approve a  plan
      of complete liquidation  of the  Company or  an agreement  for sale  or
      disposition by the Company of all or substantially all of the Company's
      assets.

           "Claim" means any threatened, pending, or completed action,  suit,
      or proceeding, or any inquiry or investigation, whether conducted by or
      on behalf of  the Company  or any other  party, that  Director in  good
      faith believes might lead to the institution of any such action,  suit,
      or proceeding, whether civil, criminal, administrative,  investigative,
      or other.

           "Covered  Act"  means   any  breach  of   duty,  neglect,   error,
      misstatement, misleading  statement, omission,  or  other act  done  or
      wrongfully attempted by Director or any of the foregoing alleged by any
      claimant or any event or occurrence  related to the fact that  Director
      is or was  a director, officer,  employee, agent, or  fiduciary of  the
      Company or  is or  was serving  at  the request  of  the Company  as  a
      director, officer, employee,  trustee, agent, or  fiduciary of  another
      corporation, partnership, joint venture, trust, or other entity.

           "Determination" means a determination, based on the facts known at
      the time, by:

                (i)   A majority vote of a quorum of disinterested directors;

                (ii)  Special, independent legal counsel in a written opinion
           prepared at the request of a majority of a quorum of disinterested
           directors or pursuant to Section 4(a);

                (iii) A majority  of  the disinterested stockholders  of  the
           Company; or

                (iv)  A  final  adjudication   by  a   court   of   competent
           jurisdiction.

      "Determined" shall have a correlative meaning.

           "Excluded Claim" means any Claim:

                (i)  Based upon or attributable  to Director gaining in  fact
           any  personal  profit  or  advantage  to  which  Director  is  not
           entitled;

                (ii) For the return by Director  of any remuneration paid  to
           Director without the previous approval of the stockholders of  the
           Company which is illegal;

                (iii) For  an  accounting  of  profits in fact made from  the
           purchase or sale by Director of  securities of the Company  within
           the meaning of Section 16 of the Act or similar provisions of  any
           state law;

                (iv)  Resulting   from   Director's   knowingly   fraudulent,
           dishonest, or willful misconduct; or

                (v)  Any claim  for which  indemnification is  prohibited  by
           applicable law.

           "Expenses" means any expense incurred by Director as a result of a
      Claim or Claims made  against him for  Covered Acts including,  without
      limitation,  attorneys'  fees  and  all  other  costs,  expenses,   and
      obligations  paid  or  incurred   in  connection  with   investigating,
      defending, being  a  witness  in, or  participating  in  (including  on
      appeal), or preparing to defend, be a witness in, or participate in any
      Claim relating to any Covered Act, but shall not include Fines.

           "Fines" means any fine,  penalty or, with  respect to an  employee
      benefit plan, any excise tax or penalty assessed with respect thereto.

           "Losses" means any  amount that Director  is legally obligated  to
      pay as a result of a Claim or Claims made against him for Covered  Acts
      including, without limitation, damages and  judgments and sums paid  in
      settlement of a Claim or Claims, but shall not include Fines.

      2.   Maintenance of Directors' and Officers' Liability Insurance.

           (a)  The Company  hereby covenants  and agrees  that, so  long  as
      Director shall  continue to  serve as  a director  of the  Company  and
      thereafter so long as  Director shall be subject  to any Claim for  any
      Covered Act, the Company, subject to  Section 2(c), shall use its  best
      efforts to maintain in full force  and effect directors' and  officers'
      liability insurance.

           (b)  In  all  policies  of  directors'  and  officers'   liability
      insurance maintained  by the  Company, Director  shall be  named as  an
      insured in such  a manner as  to provide Director  the same rights  and
      benefits, subject  to the  same limitations,  as  are accorded  to  the
      Company's directors or officers most favorably insured by such policy.

           (c)  The Company shall have  no obligation to maintain  directors'
      and officers'  liability insurance  if the  Board of  Directors of  the
      Company determines in good faith that such insurance is not  reasonably
      available, the premium costs for such insurance is disproportionate  to
      the amount  of coverage  provided, or  the  coverage provided  by  such
      insurance is limited  by exclusions so  as to  provide an  insufficient
      benefit.

      3.   Indemnification.  The  Company shall indemnify  Director and  hold
 him harmless from  any and all  Losses, Expenses, and  Fines to the  fullest
 extent  authorized,  permitted,  or  not  prohibited  (i)  by  the   General
 Corporation Law  of  the  State  of  Delaware  (the  "GCL"),  or  any  other
 applicable  law   (including   judicial,   regulatory,   or   administrative
 interpretations or  readings thereof),  the Company's  Amended and  Restated
 Certificate of Incorporation, or Amended and Restated Bylaws as in effect on
 the date  hereof,  or (ii)  by  any  amendment thereof  or  other  statutory
 provisions authorizing or  permitting such indemnification  that is  adopted
 after the date hereof, subject to the further provisions of this  Agreement.
 In the event  that after the  date hereof the  Company provides any  greater
 right of indemnification, in any respect, to any other person serving as  an
 officer  or  director   of  the  Company,   then  such   greater  right   of
 indemnification shall inure  to the  benefit of and  shall be  deemed to  be
 incorporated in this Agreement.

      4.   Excluded Coverage.

           (a)  The Company shall  have no obligation  to indemnify  Director
      for and hold  him harmless from  any Loss, Expense,  or Fine which  has
      been Determined to constitute an Excluded  Claim, provided that in  the
      event of  a  Change  in  Control, then  with  respect  to  all  matters
      thereafter arising  concerning  the  rights of  Director  to  indemnity
      payments and  Expense  advances  under this  Agreement,  or  any  other
      agreements or bylaws now or hereafter in effect relating to Claims  for
      Covered Acts, a Determination with respect  to an Excluded Claim  shall
      be made  only by  a  court of  competent  jurisdiction or  by  special,
      independent legal  counsel selected  by Director  and approved  by  the
      Company (which approval  shall not be  unreasonably withheld), and  who
      has not otherwise performed services for  the Company or Director.   In
      the event that  Director and  the Company are  unable to  agree on  the
      selection of  the special,  independent  legal counsel,  such  special,
      independent legal counsel shall be selected by lot from among at  least
      five law firms designated by Director, each in the State of Delaware or
      Dallas, Texas, having more than thirty-five (35) attorneys and having a
      rating of "av"  or better in  the then  current Martindale-Hubbell  Law
      Directory.  Such selection  shall be made in  the presence of  Director
      (and Director's  legal  counsel or  either  of them,  as  Director  may
      elect).  Such special, independent  legal counsel, among other  things,
      shall determine whether and to what extent Director would be  permitted
      to be indemnified  under applicable law  and shall  render its  written
      opinion to the Company and Director to such effect.

           If there  has  been  a  Determination  that  the  Company  is  not
      obligated to  indemnify  Director as  a  result of  an  Excluded  Claim
      (whether by special, independent legal counsel or otherwise),  Director
      shall have the right to commence  litigation in any court in the  State
      of Delaware having  subject matter jurisdiction  thereof, and in  which
      venue is proper, challenging any such Determination; provided that  the
      Company shall  be entitled  to be  reimbursed by  Director (who  hereby
      agrees to reimburse the Company) for all such amounts theretofore  paid
      with respect  to  such  Excluded Claim  (only  upon  a  final  judicial
      Determination that  Director is  not entitled  to indemnification  made
      with respect thereto as  to which all rights  of appeal therefrom  have
      been exhausted  or  lapsed)  and the  Company  shall  be  obligated  to
      indemnify or advance any  additional amounts to  Director until such  a
      judicial Determination has been made.

           (b)  The  Company  shall  use  its   best  efforts  to  make   the
      Determination contemplated herein promptly.  Upon request by  Director,
      in  connection   with  any   matter   for  which   indemnification   or
      reimbursement may be sought hereunder,  the Company agrees to  promptly
      make a Determination whether such matter constitutes an Excluded Claim.
      In this connection, the Company agrees:

                (i)  if the  Determination is  to be  made by  a majority  of
           disinterested directors  of the  Company or  a committee  thereof,
           such Determination shall be made not later than fifteen (15)  days
           after a  written  request for  a  Determination (a  "Request")  is
           delivered to the Company by Director;

                (ii) if  the  Determination  is   to  be  made  by   special,
           independent legal counsel,  such Determination shall  be made  not
           later than ninety (90)  days after a Request  is delivered to  the
           Company by Director; and

                (iii)   if   the   Determination  is   to  be  made  by   the
           stockholders of the Company, such Determination shall be made  not
           later than  one  hundred  fifty (150)  days  after  a  Request  is
           delivered to the Company by Director.

           The failure  to make  a Determination  within the  above-specified
      time  periods   shall  constitute   a  Determination   approving   full
      indemnification or reimbursement of Director.  All costs of making  the
      Determination shall be borne solely by the Company.

           (c)  The Company shall  have no obligation  to indemnify  Director
      and hold him harmless for any Loss, Expense, or Fine to the extent that
      Director is actually and finally reimbursed for such Loss, Expense,  or
      Fine by  the Company  pursuant to  the Company's  Amended and  Restated
      Bylaws or otherwise.

           (d)  The Company shall  have no obligation  to indemnify  Director
      and  hold  him  harmless  for  any  Fines  to  the  extent  that   such
      indemnification is prohibited by the GCL.

      5.   Indemnification Procedures.

           (a)  Promptly  after  receipt  by   Director  of  notice  of   the
      commencement of or the  threat of commencement  of any Claim,  Director
      shall, if indemnification with respect thereto is being sought from the
      Company under this  Agreement, notify the  Company of the  commencement
      thereof, provided  that failure  to so  notify  the Company  shall  not
      relieve the Company  from any liability  that it may  have to  Director
      under this  Agreement  unless  such failure  materially  and  adversely
      affects the rights of the Company thereunder.

           (b)  If, at the time  of the receipt of  such notice, the  Company
      has directors' and officers' liability insurance in effect, the Company
      shall give prompt and proper notice  of the commencement of such  Claim
      to the insurer.   The Company  shall thereafter take  all necessary  or
      desirable action to pay or to cause  such insurer to pay, on behalf  of
      Director, all Losses, Expenses, and Fines  payable as a result of  such
      Claim in accordance with the terms of such policies.

           (c)  To the  extent the  Company  does not,  at  the time  of  the
      commencement of  or the  threat of  commencement  of such  Claim,  have
      applicable directors' and officers' liability insurance, or if the full
      amount of any Expenses arising out of such action, suit, or Claim  will
      not be payable under such insurance  then in effect, the Company  shall
      be obligated to pay the Expenses relating to any such Claim in  advance
      of the final disposition thereof and the Company, if appropriate, shall
      be  entitled  to  assume  the  defense  of  such  Claim,  with  counsel
      satisfactory to  Director, upon  the delivery  to Director  of  written
      notice of its election so  to do.  After  delivery of such notice,  the
      Company will not  be liable to  Director under this  Agreement for  any
      legal or other Expenses subsequently incurred by Director in connection
      with  such  defense  other  than  reasonable  costs  of  investigation,
      provided that Director shall  have the right to  employ its counsel  in
      any such Claim but the fees and expenses of such counsel incurred after
      delivery of notice from the Company  of its assumption of such  defense
      shall be at the  Director's expense, provided further  that if (i)  the
      employment of counsel by Director has been previously authorized by the
      Company, (ii) Director shall have  reasonably concluded that there  may
      be a  conflict of  interest between  the Company  and Director  in  the
      conduct of any such defense, or  (iii) the Company shall not, in  fact,
      have employed counsel to  assume the defense of  such action, the  fees
      and expenses of counsel shall be at the expense of the Company.

           (d)  All payments  on  account of  the  Company's  indemnification
      obligations under this  Agreement shall be  made promptly,  but in  any
      event within thirty (30) days  of Director's written request  therefor,
      provided that  all payments  on account  of the  Company's  obligations
      under Paragraph 5(c) of this Agreement  prior to the final  disposition
      of any Claim, shall be made within ten (10) days of Director's  written
      request therefor.

           (e)  Director agrees that  he will reimburse  the Company for  all
      Losses, Expenses, and Fines paid by  the Company on behalf of  Director
      in connection with any Claim against Director in the event and only  to
      the extent that a Determination  shall have been made  by a court in  a
      final adjudication from which there is no further right of appeal  that
      the Director is not entitled to be indemnified by the Company for  such
      amounts because the Claim is an  Excluded Claim or because Director  is
      otherwise not entitled to payment under this Agreement.

      6.   Final Determination; Settlement.  The Company shall pay all Losses
 or  Fines  for   which  Director   is  indemnified   hereunder  upon   final
 determination thereof.  The  Company shall have  no obligation to  indemnify
 Director under this  Agreement for  any amounts  paid in  settlement of  any
 Claim effected without  the Company's prior  written consent.   The  Company
 shall not settle any claim in any manner which would impose any Fine or  any
 obligation on  Director without  Director's written  consent.   Neither  the
 Company nor  Director  shall  unreasonably withhold  their  consent  to  any
 proposed settlement.

      7.   Rights Not Exclusive.  The rights provided hereunder shall not  be
 deemed exclusive of any other rights to which Director may be entitled under
 any  charter  provision,  bylaw,  agreement,  vote  of  stockholders  or  of
 disinterested directors  or otherwise,  both as  to action  in his  official
 capacity and as to action in any other capacity by holding such office,  and
 shall continue after Director ceases to serve the Company as a director.

      8.   Enforcement.

           (a)  Director's right to indemnification  shall be enforceable  by
      Director only in the state courts of the State of Delaware and shall be
      enforceable notwithstanding  any adverse  Determination.   In any  such
      action, if a prior adverse Determination  has been made, the burden  of
      proving that indemnification is required under this Agreement shall  be
      on  Director.  The  Company  shall  have  the burden  of  proving  that
      indemnification  is not  required  under this  Agreement  if  no  prior
      adverse Determination shall have been made.

           (b)  In the event that any action is instituted by Director  under
      this Agreement, or  to enforce or  interpret any of  the terms of  this
      Agreement, Director shall be  entitled to be paid  all court costs  and
      expenses, including reasonable counsel fees, incurred by Director  with
      respect to such action,  unless the court determines  that each of  the
      material assertions made by  Director as a basis  for such action  were
      not made in good faith or were frivolous.

      9.   Severability.  In the event that  any provision of this  Agreement
 is determined by a court to  require the Company to do or  to fail to do  an
 act which is in violation of applicable law, such provision shall be limited
 or modified in its  application to the minimum  extent necessary to avoid  a
 violation of law,  and, as so  limited or modified,  such provision and  the
 balance of this Agreement shall be enforceable in accordance with its terms.

      10.  Choice of Law.  This Agreement shall be governed by and  construed
 and enforced in accordance with the laws of the State of Delaware.

      11.  Consent to Jurisdiction.   The  Company and  Director each  hereby
 irrevocably consent  to the  jurisdiction  of the  courts  of the  State  of
 Delaware for all purposes in connection  with any action or proceeding  that
 arises out  of  or relates  to  this Agreement  and  agree that  any  action
 instituted under this Agreement shall be brought only in the state courts of
 the State of Delaware.

      12.  Successors and Assigns.  This Agreement shall be (i) binding  upon
 all successors and assigns of the  Company (including any transferee of  all
 or substantially all of its assets and any successor by merger or  otherwise
 by operation of law) and (ii) shall be  binding on and inure to the  benefit
 of the heirs, personal representatives, and estate of Director.

      13.  Amendment.     No   amendment,   modification,   termination,   or
 cancellation of this Agreement shall be  effective unless made in a  writing
 signed by each of the parties hereto.

      14.  Subrogation.  In the  event of payment  under this Agreement,  the
 Company shall be  subrogated to the  extent of such  payment to  all of  the
 rights of  recovery  of the  Director,  who shall  execute  all  instruments
 required and  shall do  everything  that may  be  necessary to  secure  such
 rights, including the  execution of such  documents as may  be necessary  to
 enable the Company effectively to bring suit to enforce such rights.

      IN WITNESS  WHEREOF,  the  Company  and  Director  have  executed  this
 Agreement as of the day and year first above written.

                                 SPORT SUPPLY GROUP, INC.

                                 By: _____________________________
                                     John P. Walker
                                     President

                                     _____________________________
                                     Carl Harnick
                                     Director

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