Document:

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                                                                 EXHIBIT 10.84.1

(Multicurrency - Cross Border)

                                     ISDA(R)

                  INTERNATIONAL SWAP DEALERS ASSOCIATION, INC.

                                MASTER AGREEMENT

                           DATED AS OF MARCH 18, 2005
     MERRILL LYNCH CAPITAL                        ALTERRA HEALTHCARE CORPORATION
       SERVICES, INC.
        ("PARTY A")                                        ("PARTY B")

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

Accordingly, the parties agree as follows: --

1.    INTERPRETATION

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

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

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

2.    OBLIGATIONS

      (a) General Conditions.

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

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

   COPYRIGHT (C)1994 BY INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.
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            (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;

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

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

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

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

            (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

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compensate the other party on demand if and to the extent provided for in the
relevant Confirmation or elsewhere in this Agreement.

3.    REPRESENTATIONS

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

      (a) Basic Representations.

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

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

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

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

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

      (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

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enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

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

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

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

4.    AGREEMENTS

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

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

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

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

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

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

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

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      (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.

5.    EVENTS OF DEFAULT AND TERMINATION EVENTS

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

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

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

            (iii) CREDIT SUPPORT DEFAULT.

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

                  (2) the expiration or termination of such Credit Support
                  Document or the failing or ceasing of such Credit Support
                  Document to be in full force and effect for the purpose of
                  this Agreement (in either case other than in accordance with
                  its terms) prior to the satisfaction of all obligations of
                  such party under each

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                  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

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

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

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

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

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

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      in, the interpretation by any court, tribunal or regulatory authority with
      competent jurisdiction of any applicable law after such date, it becomes
      unlawful (other than as a result of a breach by the party of Section 4(b))
      for such party (which will be the Affected Party): --

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

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

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

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

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

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      (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.

6.    EARLY TERMINATION

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

      (b) Right to Terminate Following Termination Event.

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

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

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

            Any such transfer by a party under this Section 6(b)(ii) will be
            subject to and conditional upon the prior written consent of the
            other party, which consent will not be withheld if

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            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

                                       11
<PAGE>
            party obtaining such quotation will be conclusive evidence of the
            existence and accuracy of such quotation.

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

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

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

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

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

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

                                       12
<PAGE>
                  (4) Second Method and Loss. If the Second Method and Loss
                  apply, an amount will be payable equal to the Non-defaulting
                  Party's Loss in respect of this Agreement. If that amount is a
                  positive number, the Defaulting Party will pay it to the
                  Non-defaulting Party; if it is a negative number, the
                  Non-defaulting Party will pay the absolute value of that
                  amount to the Defaulting Party.

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

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

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

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

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

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

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

                                       13
<PAGE>
         (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.

7.    TRANSFER

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

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

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

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

8.    CONTRACTUAL CURRENCY

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

      (b) Judgments. To the extent permitted by applicable law, if any judgment
or order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums

                                       14
<PAGE>
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.

9.    MISCELLANEOUS

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

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

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

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

      (e) Counterparts and Confirmations.

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

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

                                       15
<PAGE>
            this Agreement. The parties will specify therein or through another
            effective means that any such counterpart, telex or electronic
            message constitutes a Confirmation.

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

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

10.   OFFICES; MULTIBRANCH PARTIES

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

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

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

11.   EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document to
which the Defaulting Party is a party or by reason of the early termination of
any Transaction, including, but not limited to, costs of collection.

12.   NOTICES

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

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

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

                                       16
<PAGE>
            (iii) if sent by facsimile transmission, on the date that
            transmission is received by a responsible employee of the recipient
            in legible form (it being agreed that the burden of proving receipt
            will be on the sender and will not be met by a transmission report
            generated by the sender's facsimile machine);

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

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

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

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

13.   GOVERNING LAW AND JURISDICTION

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

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

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

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

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

      (c) Service of Process. Each party irrevocably appoints the Process Agent
(if any) specified opposite its name in the Schedule to receive, for it and on
its behalf, service of process in any Proceedings. If for any reason any party's
Process Agent is unable to act as such, such party will

                                       17
<PAGE>
promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service
of process given in the manner provided for notices in Section 12. Nothing in
this Agreement will affect the right of either party to serve process in any
other manner permitted by law.

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

14.   DEFINITIONS

As used in this Agreement: --

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

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

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

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

"Applicable Rate" means:  --

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

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

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

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

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

                                       18
<PAGE>
"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).

"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.

                                       19
<PAGE>
"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 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.

                                       20
<PAGE>
"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-Maker"" 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 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,

                                       21
<PAGE>
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

                                       22
<PAGE>
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 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.

MERRILL LYNCH CAPITAL SERVICES, INC.           ALTERRA HEALTHCARE CORPORATION

By: /s/ Rich Zaleski                           By: /s/ Kristin A. Ferge
    -------------------------------------          -----------------------------
    Name: Rich Zaleski                             Name: Kristin A. Ferge
    Title:                                         Title: CFO/VP
    Date:                                          Date: 5/19/05

                                       23
<PAGE>
                                    SCHEDULE

                                     TO THE

                                MASTER AGREEMENT

                           DATED AS OF MARCH 18, 2005

                                     BETWEEN

               MERRILL LYNCH CAPITAL SERVICES, INC., A CORPORATION
                ORGANIZED UNDER THE LAWS OF THE STATE OF DELAWARE
                                   ("PARTY A")

                                       AND

          ALTERRA HEALTHCARE CORPORATION, A CORPORATION ORGANIZED UNDER
                              THE LAWS OF DELAWARE
                                   ("PARTY B")

                                     PART 1

                             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

         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 unless another meaning is specified here: No change from Section
14.

(c) The "CROSS DEFAULT" provisions of Section 5(a)(vi) will apply to Party A and
to Party B.
<PAGE>
If such provisions apply:

"SPECIFIED INDEBTEDNESS" will have the meaning specified in Section 14 of this
Agreement unless another meaning is specified here: No change from Section 14.

"THRESHOLD AMOUNT" means, in respect of Party A, USD 100,000,000 or its
equivalent in other currencies, and in respect of Party B, USD 35,000,000 or its
equivalent in other currencies.

(d) The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) will apply to
Party A and Party B.

(e) The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will not apply
to either Party A or to Party B.

(f) PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e) of this
Agreement:

    (i)      Market Quotation will apply.

    (ii)     The Second Method will apply.

(g) "TERMINATION CURRENCY" means United States Dollars.

(h) ADDITIONAL TERMINATION EVENT will not apply.

                                     PART 2

                               TAX REPRESENTATIONS

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

    It is not required by any applicable law, as modified by the practice of any
    relevant governmental revenue authority, of any Relevant Jurisdiction to
    make any deduction or withholding for or on account of any Tax from any
    payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this
    Agreement) to be made by it to the other party under this Agreement. In
    making this representation, it may rely on (i) the accuracy of any
    representations made by the other party pursuant to Section 3(f) of this
    Agreement, (ii) the satisfaction of the agreement 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.

                                       25
<PAGE>
(b) PAYEE REPRESENTATIONS. For the purpose of Section 3(f) of this Agreement,
Party A and Party B make the following representations: --

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

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

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

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

                                       26
<PAGE>
                                     PART 3

                         AGREEMENT TO DELIVER DOCUMENTS

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

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

<TABLE>
<CAPTION>
            PARTY REQUIRED TO
             DELIVER DOCUMENT                      FORM/DOCUMENT/CERTIFICATE               DATE BY WHICH TO BE DELIVERED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                       <C>
Party B                                     A correct, complete and executed U.S.
                                            Internal Revenue Service Form W-9 (or     (i) Before the first Payment Date under
                                            any successor thereto), including         this Agreement, (ii) promptly upon
                                            appropriate attachments, that             reasonable demand by Party A, and (iii)
                                            eliminates U.S. federal backup            promptly upon learning that any such
                                            withholding tax on payments under this    form previously provided by Party B has
                                            Agreement.                                become obsolete or incorrect.
</TABLE>

(b) Other Documents to be delivered are:

<TABLE>
<CAPTION>
      PARTY REQUIRED                                                                                            COVERED BY
        TO DELIVER                                                                   DATE BY WHICH              SECTION 3(D)
         DOCUMENT                     FORM/DOCUMENT/CERTIFICATE                     TO BE DELIVERED            REPRESENTATION
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                                                 <C>                            <C>
Party A/Party B.            Annual audited financial statements (or, in       Promptly after request.               Yes.
                            the case of Party A, of its Credit Support
                            Provider) prepared in accordance with generally
                            accepted accounting principles in the country
                            in which the party (or, in the case of Party A,
                            its Credit Support Provider) is organized.

Party A/Party B.            Quarterly unaudited financial statements (or,     Promptly after request.               Yes.
                            in the case of Party A, of its Credit Support
                            Provider) prepared in accordance with
                            generally accepted accounting principles in
                            the country in which the party (or, in the
                            case of Party A, its Credit Support Provider)
                            is organized.

Party A/Party B.            Credit Support Document, if any, specified in     Concurrently with the                 No.
                            Part 4 of the Schedule, such Credit Support       execution of this Agreement.
                            Document being duly executed if required.
</TABLE>

                                       27
<PAGE>
<TABLE>
<CAPTION>
      PARTY REQUIRED                                                                                            COVERED BY
        TO DELIVER                                                                   DATE BY WHICH              SECTION 3(D)
         DOCUMENT                     FORM/DOCUMENT/CERTIFICATE                     TO BE DELIVERED            REPRESENTATION
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                                                 <C>                            <C>
Party A/Party B.            Certified copies of the resolution(s) of its      Concurrently with the                 Yes.
                            board of directors or other documents             execution of this Agreement.
                            authorizing the execution and delivery of
                            this Agreement.

Party A/Party B.            Incumbency certificate or other documents         Concurrently with the                 Yes.
                            evidencing the authority of the party             execution of this Agreement
                            entering into this Agreement or any other         or of any other documents
                            document executed in connection with this         executed in connection with
                            Agreement.                                        this Agreement.

Party B.                    Opinions of counsel with respect to Party B       Concurrently with the                 No.
                            in form and substance acceptable to Party A.      execution of this Agreement.
</TABLE>

                                       28
<PAGE>
                                     PART 4

                                  MISCELLANEOUS

(a) ADDRESSES FOR NOTICES: For the purpose of Section 12(a) of this Agreement:-

Address for notices or communications to PARTY A: -

Address:                MERRILL LYNCH WORLD HEADQUARTERS
                        4 WORLD FINANCIAL CENTER, 18TH FLOOR
                        NEW YORK, NEW YORK 10080
Attention:              SWAP GROUP
Facsimile No.           646 805-0218            Telephone No.:  212 449-7403

(For all purposes)

Additionally, a copy of all notices pursuant to Sections 5, 6, and 7 as well as
any changes to counterparty's address, telephone number or facsimile number
should be sent to:

                           GMI COUNSEL
                           MERRILL LYNCH WORLD HEADQUARTERS
                           4 WORLD FINANCIAL CENTER, 12TH FLOOR
                           NEW YORK, NEW YORK 10080
                           ATTENTION: SWAPS LEGAL
                           FACSIMILE NO.: 212 449-6993

Address for notices or communications to PARTY B: -

Address:                ALTERRA HEALTHCARE CORPORATION
                        6737 W. WASHINGTON STREET,
                        SUITE 2300
                        MILWAUKEE, WI 53214

Attention:              KRISTIN FERGE
                        STAN YOUNG

Facsimile No.           414 918-5055            Telephone No.:  414-918-5506
                        312 977-3699

(FOR ALL PURPOSES/ONLY WITH RESPECT TO SWAP TRANSACTIONS THROUGH THIS OFFICE)

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

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.

                                       29
<PAGE>
(d) MULTIBRANCH PARTY. For the purpose of Section 10(c) of this Agreement:

Party A is not a Multibranch Party.

Parry B is not a Multibranch Party.

(e) CALCULATION AGENT. The Calculation Agent is Party A, unless otherwise
specified in a Confirmation in relation to the relevant Transaction.

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

Party A: Guarantee of Merrill Lynch & Co., Inc. ("ML&Co.") in the form attached
hereto as Exhibit A.

Party B: the Credit Support Annex which supplements, forms part of, and is
subject to this Agreement and any Confirmation which provides for credit support
or enhancement of a Transaction.

(g) CREDIT SUPPORT PROVIDER.

Credit Support Provider means in relation to Party A, ML & Co.

Credit Support Provider means in relation to Party B, Not Applicable.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York without reference to choice of
law doctrine.

(i) NETTING OF PAYMENTS. Subparagraph (ii) of Section 2(c) of this Agreement
will apply, unless one party provides at least fifteen days' prior notice to the
other that subparagraph (ii) will not apply.

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

                                       30
<PAGE>
                                     PART 5

                                OTHER PROVISIONS

(1) FINANCIAL STATEMENTS. Section 3(d) is hereby amended by adding in the third
line thereof after the word "respect" and before the period:

    "or, in the case of financial statements, a fair presentation of the
    financial condition of the relevant party".

(2) ADDITIONAL REPRESENTATIONS. For purposes of Section 3, the following shall
be added, immediately following paragraph (f) thereto:

    (g) It is an "eligible contract participant" within the meaning of the
    United States Commodity Exchange Act.

    (h) It has entered into this Agreement (including each Transaction evidenced
    hereby) in conjunction with its line of business (including financial
    intermediation services) or the financing of its business.

    (i) It is entering into this Agreement, any Credit Support Document to which
    it is a party, each Transaction and any other documentation relating to this
    Agreement or any Transaction as principal (and not as agent or in any other
    capacity, fiduciary or otherwise).

In addition, the parties each represent (which representations will be deemed to
be repeated on each date on which a Transaction is entered into) that:

    (j) NON-RELIANCE. Each party represents to the other party (which
    representation will be deemed to be repeated by each party on each date on
    which a Transaction is entered into or amended, extended or otherwise
    modified) that it is acting for its own account, and has made its own
    independent decisions to enter into this Agreement and any Transaction
    hereunder and as to whether this Agreement and any Transaction hereunder is
    appropriate or proper for it based on its own judgment and upon advice from
    such advisors as it has deemed necessary. It is not relying on any
    communication (written or oral) of the other party as investment advice or
    as a recommendation to enter into this Agreement or any Transaction
    hereunder, it being understood that information and explanations related to
    the terms and conditions of this Agreement and any Transaction hereunder
    shall not be considered investment advice or a recommendation to enter into
    this Agreement or any Transaction hereunder. 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 any Transaction hereunder.

(3) TRANSFER. Notwithstanding the provisions of Section 7, Party A may assign
its rights and delegate its obligations under any Transaction, in whole or in
part, to any affiliate (an "Assignee") of ML & Co., effective (the "Effective
Date") upon delivery to Party B of both (a) an executed acceptance and
assumption by the Assignee of the transferred obligations of Party A under the
Transaction(s) (the "Transferred Obligations"); and (b) an executed guarantee of
ML & Co., of the Transferred Obligations,

                                       31
<PAGE>
substantially in the form of Exhibit A hereto. On the Effective Date, (a) Party
A shall be released from all obligations and liabilities arising under the
Transferred Obligations; and (b) the Transferred Obligations shall cease to be
Transaction(s) under this Agreement and shall be deemed to be Transaction(s)
under the master agreement between Assignee and Party B, provided that, if at
such time Assignee and Party B have not entered into a master agreement,
Assignee and Party B shall be deemed to have entered into an ISDA form of Master
Agreement (Multicurrency-Cross Border) without any Schedule attached thereto.

(4) METHOD OF NOTICE. Section 12(a)(ii) of the Master Agreement is deleted in
its entirety.

(5) JURISDICTION.

    (a) Section 13(b)(i) of the Agreement is amended to read in its entirety as
    follows:

    " (i) submits to the 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, which submission shall be exclusive unless none of such courts
    has lawful jurisdiction over such Proceedings;" and

    (b) the final paragraph of Section 13(b) of the Agreement is hereby deleted.

(6) SET-OFF.

    (a) Without affecting the provisions of this Agreement requiring the
    calculation of certain net payment amounts, all payments under this
    Agreement will be made without setoff or counterclaim; provided, however,
    that in addition to any rights of setoff a party may have as a matter of law
    or otherwise, upon the designation or deemed designation of an Early
    Termination Date, the non-Defaulting Party or non-Affected party (in either
    case, "X") may without prior notice set off any sum or obligation (whether
    or not arising under this Agreement, whether or not matured, whether or not
    contingent and regardless of the currency, place of payment or booking
    office of the obligation) owed or due by the Defaulting Party or Affected
    Party (in either case, "Y") to X against any sum or obligation (whether or
    not arising under this Agreement, whether or not matured, whether or not
    contingent and regardless of the currency, place of payment or booking
    office of the obligation) owed or due by X or any Affiliate of X to Y.

    (b) For the purposes of cross-currency set-off, X may convert any obligation
    to another currency at a market rate determined by X.

    (c) If an obligation is unascertained, X may in good faith estimate that
    obligation and set off in respect of the estimate, subject to the relevant
    party accounting to the other when the obligation is ascertained.

(7) ESCROW. If by reason of the time difference between the cities in which
payments are to be made, it is not possible for simultaneous payments to be made
on any date on which both parties are required to make payments hereunder,
either party may, at its option and in its sole discretion, notify the other
party that payments on that date are to be made in escrow. In this case, deposit
of the payment due earlier on that date shall be made by 2:00 p.m. (local time
at the place for the earlier payment) on that date with an escrow agent selected
by the notifying party, accompanied by irrevocable payment

                                       32
<PAGE>
instruction (i) to release the deposited payment to the intended recipient upon
receipt by the escrow agent of the required deposit of the corresponding payment
from the other party on the same date accompanied by irrevocable payment
instructions to the same effect or (ii) if the required deposit of the
corresponding payment is not made on that same date, to return the payment
deposited to the party that paid it in escrow. The party that elects to have
payments made in escrow shall pay the costs of the escrow arrangements and shall
cause those arrangements to provide that the intended recipient of the payment
due to be deposited first shall be entitled to interest on that deposited
payment for each day in the period of its deposit at the rate offered by the
escrow agent for that day for overnight deposits in the relevant currency in the
office where it holds that deposited payment (at 11:00 a.m. local time on that
day) if that payment is not released by 5:00 p.m. local time on the date it is
deposited for any reason, other than the intended recipient's failure to make
the escrow deposit it is required to make hereunder in a timely fashion.

(8) CONSENT TO RECORDING. The parties agree that each may electronically record
all telephonic conversations between marketing and trading personnel in
connection with this Agreement.

(9) WAIVER OF JURY TRIAL. Each party hereby irrevocably waives any and all right
to trial by jury with respect to any legal proceeding arising out of or relating
to this Agreement or any Transaction contemplated hereunder.

                                       33
<PAGE>
                                                                       EXHIBIT A

                     GUARANTEE OF MERRILL LYNCH & CO., INC.

         FOR VALUE RECEIVED, receipt of which is hereby acknowledged, Merrill
Lynch & Co., Inc., a corporation duly organized and existing under the laws of
the State of Delaware ("ML & CO."), hereby unconditionally guarantees to ALTERRA
HEALTHCARE CORPORATION (the "Company"), the due and punctual payment of any and
all amounts payable by Merrill Lynch Capital Services, Inc., a corporation
organized under the laws of the State of Delaware ("MLCS"), its successors and
permitted assigns, to the extent such successors or permitted assigns are direct
or indirect subsidiaries of ML & Co., under the terms of the Master Agreement
between the Company and MLCS, dated as of March 18, 2005 (the "Agreement"),
including, in case of default, interest on any amount due, when and as the same
shall become due and payable, whether on the scheduled payment dates, at
maturity, upon declaration of termination or otherwise, according to the terms
thereof. In case of the failure of MLCS punctually to make any such payment, ML
& Co. hereby agrees to make such payment, or cause such payment to be made,
promptly upon demand made by the Company to ML & Co.; provided, however that
delay by the Company in giving such demand shall in no event affect ML & Co.'s
obligations under this Guarantee. This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any payment
guaranteed hereunder, in whole or in part, is rescinded or must otherwise be
returned by the Company upon the insolvency, bankruptcy or reorganization of
MLCS or otherwise, all as though such payment had not been made.

         ML & Co. hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Agreement; the absence of any action to enforce the same; any waiver or consent
by the Company concerning any provisions thereof; the rendering of any judgment
against MLCS or any action to enforce the same; or any other circumstances that
might otherwise constitute a legal or equitable discharge of a guarantor or a
defense of a guarantor. ML & Co. covenants that this guarantee will not be
discharged except by complete payment of the amounts payable under the
Agreement. This Guarantee shall continue to be effective if MLCS merges or
consolidates with or into another entity, loses its separate legal identity or
ceases to exist.

         ML & Co. hereby waives diligence; presentment; protest; notice of
protest, acceleration, and dishonor; filing of claims with a court in the event
of insolvency or bankruptcy of MLCS; all demands whatsoever, except as noted in
the first paragraph hereof; and any right to require a proceeding first against
MLCS.

         ML & Co. hereby certifies and warrants that this Guarantee constitutes
the valid obligation of ML & Co. and complies with all applicable laws.

         This Guarantee shall be governed by, and construed in accordance with,
the laws of the State of New York.

         This Guarantee may be terminated at any time by notice by ML & Co. to
the Company given in accordance with the notice provisions of the Agreement,
effective upon receipt of such notice by the Company or such later date as may
be specified in such notice; provided, however, that this Guarantee

                                       34
<PAGE>
shall continue in full force and effect with respect to any obligation of MLCS
under the Agreement entered into prior to the effectiveness of such notice of
termination.

         This Guarantee becomes effective concurrent with the effectiveness of
the Agreement, according to its terms.

         IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed
in its corporate name by its duly authorized representative.

                                            MERRILL LYNCH & CO., INC.

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

                                            Date:
                                                  ------------------------------

                                       35
<PAGE>
(BILATERAL FORM)

                                  (ISDA AGREEMENTS SUBJECT TO NEW YORK LAW ONLY)

                                     ISDA(R)

              INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

                              CREDIT SUPPORT ANNEX

                             TO THE SCHEDULE TO THE
                              ISDA MASTER AGREEMENT

                           DATED AS OF MARCH 18, 2005

                                     BETWEEN

MERRILL LYNCH CAPITAL                  AND                    ALTERRA HEALTHCARE
    SERVICES, INC.                                               CORPORATION
     ("PARTY A")                                                  ("PARTY B")

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

Accordingly, the parties agree as follows:

PARAGRAPH 1.  INTERPRETATION

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

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

PARAGRAPH 2.  SECURITY INTEREST

Each party, as the Pledgor, hereby pledges to the other party, as the Secured
Party, as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party hereunder.
Upon the Transfer by the Secured Party to the Pledgor of Posted Collateral, the
security interest and lien

                                       1
<PAGE>
granted hereunder on that Posted Collateral will be released immediately and, to
the extent possible, without any further action by either party.

PARAGRAPH 3.  CREDIT SUPPORT OBLIGATIONS

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

         (i) the Credit Support Amount

         exceeds

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

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

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

         exceeds

         (ii) the Credit Support Amount.

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

PARAGRAPH 4. CONDITIONS PRECEDENT, TRANSFER TIMING, CALCULATIONS AND
SUBSTITUTIONS

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

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

                                       2
<PAGE>
         (ii) no Early Termination Date for which any unsatisfied payment
         obligations exist has occurred or been designated as the result of an
         Event of Default or Specified Condition with respect to the other
         party.

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

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

(d)      Substitutions.

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

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

PARAGRAPH 5. DISPUTE RESOLUTION

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

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

                                       3
<PAGE>
                  (A) utilizing any calculations of Exposure for the
                  Transactions (or Swap Transactions) that the parties have
                  agreed are not in dispute;

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

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

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

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

PARAGRAPH 6. HOLDING AND USING POSTED COLLATERAL

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

(b)      Eligibility to Hold Posted Collateral; Custodians.

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

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

                                       4
<PAGE>

         Custodian to Transfer all Posted Collateral held by it to a Custodian
         that satisfies those conditions or to the Secured Party if it satisfies
         those conditions.

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

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

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

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

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

(d)      Distributions and Interest Amount.

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

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

                                       5
<PAGE>
PARAGRAPH 7. EVENTS OF DEFAULT

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

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

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

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

PARAGRAPH 8. CERTAIN RIGHTS AND REMEDIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PARAGRAPH 9. REPRESENTATIONS

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

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

                                       7

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

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

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

PARAGRAPH 10. EXPENSES

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

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

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

PARAGRAPH 11. MISCELLANEOUS

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

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

                                       8
<PAGE>
Amount or to effect or document a release of a security interest on
Posted Collateral or an Interest Amount.

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

(d) GOOD FAITH AND COMMERCIALLY REASONABLE MANNER. Performance of all
obligations under this Annex, including, but not limited to, all calculations,
valuations and determinations made by either party, will be made in good faith
and in a commercially reasonable manner.

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

(f) SPECIFICATIONS OF CERTAIN MATTERS. Anything referred to in this Annex as
being specified in Paragraph 13 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.

PARAGRAPH 12. DEFINITIONS

As used in this Annex: --

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

"CREDIT SUPPORT AMOUNT" has the meaning specified in Paragraph 3.

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

"DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a).

"DISPUTING PARTY" has the meaning specified in Paragraph 5.

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

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

"ELIGIBLE CREDIT SUPPORT" means Eligible Collateral and Other Eligible Support.

                                       9
<PAGE>
"EXPOSURE" means for any Valuation Date or other date for which Exposure is
calculated and subject to Paragraph 5 in the case of a dispute, the amount, if
any, that would be payable to a party that is the Secured Party by the other
party (expressed as a positive number) or by a party that is the Secured Party
to the other party (expressed as a negative number) pursuant to Section
6(e)(ii)(2)(A) of this Agreement as if all Transactions (or Swap Transactions)
were being terminated as of the relevant Valuation Time; provided that Market
Quotation will be determined by the Valuation Agent using its estimates at
mid-market of the amounts that would be paid for Replacement Transactions (as
that term is defined in the definition of "Market Quotation").

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

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

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

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

     (z)  360.

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

"INTEREST RATE" means the rate specified in Paragraph 13.

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

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

"NOTIFICATION TIME" has the meaning specified in Paragraph 13.

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

"OTHER ELIGIBLE SUPPORT" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 13.

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

                                       10
<PAGE>
"PLEDGOR" means either party, when that party (i) receives a demand for or is
required to Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has
Transferred Eligible Credit Support under Paragraph 3(a).

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

"POSTED CREDIT SUPPORT" means Posted Collateral and Other Posted Support.

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

"RESOLUTION TIME" has the meaning specified in Paragraph 13.

"RETURN AMOUNT" has the meaning specified in Paragraph 3(b).

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

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

"SUBSTITUTE CREDIT SUPPORT" has the meaning specified in Paragraph 4(d)(i).

"SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

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

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

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

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

          (iii) in the case of securities that. can be paid or delivered by
          book-entry, the giving of written instructions to the relevant
          depository institution or other entity specified by the recipient,

                                       11
<PAGE>
          together with a written copy thereof to the recipient, sufficient if
          complied with to result in a legally effective transfer of the
          relevant interest to the recipient; and

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

"VALUATION AGENT" has the meaning specified in Paragraph 13.

"VALUATION DATE" means each date specified in or otherwise determined pursuant
to Paragraph 13.

"VALUATION PERCENTAGE" means, for any item of Eligible Collateral, the
percentage specified in Paragraph 13. "Valuation Time" has the meaning specified
in Paragraph 13.

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

          (i) Eligible Collateral or Posted Collateral that is:

               (A) Cash, the amount thereof; and

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

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

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

                                       12
<PAGE>
PARAGRAPH 13. ELECTIONS AND VARIABLES

(a) SECURITY INTEREST FOR "OBLIGATIONS". The term "OBLIGATIONS" as used in this
Annex includes the following additional obligations: Not Applicable.

(b) Credit Support Obligations.

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

          (A) "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a).

          (B) "RETURN AMOUNT" has the meaning specified in Paragraph 3(b).

          (C) "CREDIT SUPPORT AMOUNT" means, for any Valuation Date (i) the
          Secured Party's Exposure for that Valuation Date plus (ii) the
          aggregate of all Independent Amounts applicable to the Pledgor, if
          any, minus (iii) the Pledgor's Threshold; provided, however, that (x)
          in the case where the sum of the Independent Amounts applicable to the
          Pledgor exceeds zero, the Credit Support Amount will not be less than
          the sum of all Independent Amounts applicable to the Pledgor and (y)
          in all other cases, the Credit Support Amount will be deemed to be
          zero whenever the calculation of Credit Support Amount yields an
          amount less than zero.

     (ii) ELIGIBLE COLLATERAL. The following items will qualify as "ELIGIBLE
     COLLATERAL":

<Table>
<Caption>
                                                                                            VALUATION
                                                                                           PERCENTAGE
<S>                                                                                        <C>
          (A) Cash;                                                                           100%

          (B) Negotiable debt obligations issued by the U.S. Treasury Department               99%
          having a remaining maturity of not more than one year;

          (C) Non-Callable Agency Debt having a remaining maturity of not more                 98%
          than one year, for purposes hereof, "Non-Callable Agency Debt" means
          fixed-rate, non-callable, non-amortizing U.S. Dollar-denominated
          senior debt securities of fixed maturity in book entry form issued by
          the Federal Home Loan Banks (including their consolidated obligations
          issued through the Office of Finance of the Federal Home Loan Bank
          System) ("FHLB"), Fannie Mae, the Federal Home Loan Mortgage
          Corporation ("Freddie Mac"), the Federal Farm Credit Banks ("FFCB") or
          the Government National Mortgage Association ("Ginnie Mae");
</TABLE>

                                       13
<PAGE>
<TABLE>
<S>                                                                                            <C>

          (D) Non-Callable Agency Discount Notes having a remaining maturity of                98%
          not more than twelve months, for purposes hereof, "Non-Callable Agency
          Discount Notes" means non-callable U.S. Dollar-denominated discount
          notes sold at a discount from their principal amount payable at
          maturity with an original maturity of 360 days or less in book entry
          form and issued by Fannie Mae, Freddie Mac, FHLB, FFCB or Ginnie Mae;

          (E) Negotiable debt obligations issued by the U.S. Treasury Department               97%
          having a remaining maturity of more than one year but not more than
          ten years;

          (F) Non-Callable Agency Debt having a remaining maturity of more than                96%
          one year but not more than ten years; and

          (G) Negotiable debt obligations issued by the U.S. Treasury Department               95%
          having a remaining maturity of more than ten years.
</Table>

     (iii) OTHER ELIGIBLE SUPPORT. There shall be no "OTHER ELIGIBLE SUPPORT"
     for either Party A or Party B.

     (iv) THRESHOLDS.

          (A) "INDEPENDENT AMOUNT" means, for Party B, with respect to each
          Transaction, zero (unless a different amount is specified in the
          Confirmation of that Transaction as that party's Independent Amount).

          (B) "THRESHOLD" for the Pledgor means zero.

          (C) "MINIMUM TRANSFER AMOUNT" means, with respect to Party B, USD
          250,000; provided, that if an Event of Default or Specified Condition
          has occurred and is continuing with respect to Party B, the Minimum
          Transfer Amount with respect to Party B shall be zero.

          (D) "ROUNDING". The Delivery Amount and the Return Amount will be
          rounded up or down respectively to the nearest integral multiple of
          USD 10,000.

(c) VALUATION AND TIMING.

                                       14
<PAGE>
     (i) "VALUATION AGENT" means, for purposes of Paragraph 3 and 5, the party
     making the demand under Paragraph 3; for the purpose of Paragraph 4(d)(ii),
     the Secured Party receiving the Substitute Credit Support; and for purposes
     of Paragraph 6(d), the Secured Party receiving or deemed to receive the
     Distributions or the Interest Amount, as applicable.

     (ii) "VALUATION DATE" means (a) the Trade Date of each Transaction, if
     Party B has an Independent Amount greater than zero for that Transaction,
     (b) each Friday of the relevant calendar month (or if such day is not a
     Local Business Day then the immediately preceding Local Business Day) and
     (c) each other Local Business Day designated as a Valuation Date by notice
     given by one party to the other no later than the Notification Time on the
     Local Business Day before the Valuation Date so designated.

     (iii) "VALUATION TIME" means the close of business in the city of the
     Valuation Agent on the Local Business Day preceding the Valuation Date or
     date of calculation, as applicable; provided that the calculations of Value
     and Exposure will be made as of approximately the same time on the same
     date.

     (iv) "NOTIFICATION TIME" means 10:00 a.m., New York time, on a Local
     Business Day.

(d) CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. For purposes
of Paragraph 8(a), each Termination Event will constitute a Specified Condition
with respect to Pledgor, if the Pledgor fails to pay when due any amount payable
by it in connection with an Early Termination Date designated in connection with
that Termination Event. For all other purposes of this Annex, each Termination
Event specified below with respect to a party will be a "SPECIFIED CONDITION"
for that party.

          Credit Event Upon Merger                                 [X]
          Additional Termination Events (if any)                   [X]

(e) SUBSTITUTION.

     (i) "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

     (ii) "CONSENT." The Pledgor may substitute Eligible Credit Support pursuant
     to Paragraph 4(d) without consent from the Secured Party.

(f) DISPUTE RESOLUTION.

     (i) "RESOLUTION TIME" means 1:00 p.m., New York time, on the first Local
     Business Day following the date on which notice of a dispute is given under
     Paragraph 5.

     (ii) "VALUE." For the purpose of Paragraph 5(i)(C) and 5(ii), the Value of
     Eligible Collateral other than Cash will be calculated as follows:

          the sum of (i) (x) the arithmetic mean of the closing bid prices
     quoted on the relevant date of three nationally recognized principal market
     makers (which may include

                                       15
<PAGE>
     an affiliate of Party A) for such security chosen by the Valuation Agent
     multiplied by the applicable Valuation Percentage or (y) if no quotations
     are available from such principal market makers on the relevant date, the
     arithmetic mean of the closing bid prices on the next preceding date
     multiplied by the applicable Valuation Percentage plus (ii) the accrued
     interest on such security (except to the extent Transferred to a party
     pursuant to any applicable provision of this Agreement or included in the
     applicable price referred to in (i) of this clause) as of such date.

     (iii) "ALTERNATIVE." Not Applicable.

(g) HOLDING AND USING POSTED COLLATERAL.

     (i) "ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS." As long as the
     conditions set forth in clause (A) below are satisfied, Party A shall be
     entitled to hold Posted Collateral pursuant to Paragraph 6(b). As long as
     the condition set forth in clause (B) below are satisfied, any Custodian
     for Party A shall be entitled to hold Posted Collateral pursuant to
     Paragraph 6(b).

          (A) Party A: (a) The long-term, unsecured, unsubordinated debt ratings
          of ML & Co. are at least BBB+ (in the case of S&P) and Baal (in the
          case of Moody's) and (b) Party A is not a Defaulting Party.

          (B) The Custodian: The Custodian is either: (a) a wholly owned, direct
          or indirect, Affiliate of ML & Co. or (b) a bank or trust company
          located in the State of New York having total assets of at least USD
          10,000,000,000.

          Initially, the CUSTODIAN for Party A is: Merrill Lynch, Pierce, Fenner
          & Smith Inc.

     (ii) "USE OF POSTED COLLATERAL." The provisions of Paragraph 6(c) will
     apply.

(h) DISTRIBUTIONS AND INTEREST AMOUNT.

     (i) "INTEREST RATE." The Interest Rate will be the rate per annum equal to
     the overnight Federal Funds Rate (the "Fed Funds Rate") for each day cash
     is held by the Secured Party as reported in Federal Reserve Publication
     H.15-519.

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

     (iii) "ALTERNATIVE TO INTEREST AMOUNT." Not Applicable.

(i) ADDITIONAL REPRESENTATION(S). Not Applicable.

(j) "OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT."

                                       16
<PAGE>
     (i) "VALUE" with respect to Other Eligible Support and Other Posted Support
     means: Not Applicable.

     (ii) "TRANSFER" with respect to Other Eligible Support and Other Posted
     Support means: Not Applicable.

(k) DEMANDS AND NOTICES. All demands, specifications and notices made by a party
to this Annex will be made pursuant to the Notices Section of this Agreement.

(l) ADDRESSES FOR TRANSFERS. Not Applicable.

(m) OTHER PROVISIONS.

     (i) AGREEMENT AS TO SINGLE SECURED PARTY AND PLEDGOR. Party A and Party B
     agree that, notwithstanding anything to the contrary in the recital to this
     Annex, Paragraph 1(b) or Paragraph 2 or the definitions in Paragraph 12,
     (a) the term "Secured Party" as used in this Annex means only Party A, (b)
     the term "Pledgor" as used in this Annex means only Party B, (c) only Party
     B makes the pledge and grant in Paragraph 2, the acknowledgment in the
     final sentence of Paragraph 8(a) and the representations in Paragraph 9 and
     (d) only Party B will be required to make Transfers of Eligible Credit
     Support hereunder. Party A and Party B further agree that, notwithstanding
     anything to the contrary in the recital to this Annex or Paragraph 7, this
     Annex will constitute a Credit Support Document only with respect to Party
     B, and the Events of Default in Paragraph 7 will only apply to Party B.

     (ii) FIRREA. Party B, if an FDIC-insured depository institution, represents
     that (i) this Annex has been executed and delivered by a duly appointed or
     elected and authorized officer of Party B of the level of vice president or
     higher and (ii) Party B has taken all necessary action to authorize the
     execution, delivery and performance of this Annex.

     (iii) ADDITIONS TO PARAGRAPH 3. The following subparagraph (c) is hereby
     added to Paragraph 3 of this Annex:

     (c) NO OFFSET. On any Valuation Date, if either (i) each party is required
     to make a Transfer under Paragraph 3(a) or (ii) each party is required to
     make a Transfer under Paragraph 3(b), then the amounts of those obligations
     will not offset each other.

     (iv) Posted Collateral. The definition of Posted Collateral shall also
     include any and all accounts in which Cash Collateral is held.

                                       17
<PAGE>
MERRILL LYNCH
[LOGO]

                                 COVER STATEMENT
                        CLIENT/COUNTERPARTY RELATIONSHIP

Dear Client/Counterparty:

     Merrill Lynch is pleased to provide the attached statement of Generic Risks
Associated with Over-the-Counter FX and Derivative Transactions ("OTC
Transactions") under this Cover Statement that concerns, among other things, the
nature of our relationship with you in the context of such transactions. This
statement was developed for our new and our ongoing client/counterparties in
response to suggestions that over-the-counter FX and derivative dealers consider
taking steps to ensure that market participants utilizing OTC Transactions
understand their risk exposures and the nature of their relationships with
dealers before they enter into OTC Transactions.

     Merrill Lynch ("we") are providing to you and your organization ("you") the
attached statement of Generic Risks Associated with OTC Transactions in order to
identify, in general terms, certain of the principal risks associated with
individually negotiated OTC Transactions. The attached statement does not
purport to identify the nature of the specific market or other risks associated
with a particular transaction.

     Before entering into an OTC Transaction, you should ensure that you fully
understand the terms of the transaction, relevant risk factors, the nature and
extent of your risk of loss and the nature of the contractual relationship into
which you are entering. You should also carefully evaluate whether the
transaction is appropriate for you in light of your experience, objectives,
financial resources, and other relevant circumstances and whether you have the
operational resources in place to monitor the associated risks and contractual
obligations over the term of the transaction. If you are acting as a financial
adviser or agent, you should evaluate these considerations in light of the
circumstances applicable to your principal and the scope of your authority.

     If you believe you need assistance in evaluating and understanding the
terms or risks of a particular OTC Transaction, you should consult appropriate
advisers before entering into the transaction.

     Unless we have expressly agreed in writing to act as your adviser with
respect to a particular OTC Transaction pursuant to terms and conditions
specifying the nature and scope of our advisory relationship, we are acting in
the capacity of an arm's length contractual counterparty to you in connection
with the transaction and not as your financial adviser or fiduciary.
Accordingly, unless we have so agreed to act as your adviser, you should not
regard transaction proposals, suggestions or other written or oral
communications from us as recommendations or advice or as expressing our view as
to whether a particular transaction is appropriate for you or meets your
financial objectives.

     Finally, we and/or our affiliates may from time to time take proprietary
positions and/or make a market in instruments identical or economically related
to OTC Transactions entered into with you, or may have an investment banking or
other commercial relationship with and access to information from the issuer(s)
of securities, financial instruments, or other interests underlying OTC
Transactions entered into with you. We may also undertake proprietary
activities, including hedging transactions related to the initiation or
termination of an OTC Transaction with you, that may adversely affect the market
price,
<PAGE>
rate index or other market factor(s) underlying an OTC Transaction entered
into with you and consequently the value of the transaction.
<PAGE>
MERRILL LYNCH
[LOGO]

                          GENERIC RISKS ASSOCIATED WITH
                 OVER-THE-COUNTER FX AND DERIVATIVE TRANSACTIONS

Over-the-counter FX and derivative transactions ("OTC Transactions"), like other
financial transactions, involve a variety of significant risks. The specific
risks presented by a particular OTC Transaction necessarily depend upon the
terms of the transaction and your circumstances. In general, however, all OTC
Transactions involve some combination of market risk, credit risk, funding risk
and operational risk.

     MARKET RISK is the risk that the value of a transaction will be adversely
     affected by fluctuations in the level or volatility of or correlation or
     relationship between one or more market prices, rates or indices or other
     market factors or by illiquidity in the market for the relevant transaction
     or in a related market.

     CREDIT RISK is the risk that a counterparty will fail to perform its
     obligations to you when due.

     FUNDING RISK is the risk that, as a result of mismatches or delays in the
     timing of cash flows due from or to your counterparties in OTC Transactions
     or related hedging, trading, collateral or other transactions, you or your
     counterparty will not have adequate cash available to fund current
     obligations.

     OPERATIONAL RISK is the risk of loss to you arising from inadequacies in or
     failures of your internal systems and controls for monitoring and
     quantifying the risks and contractual obligations associated with OTC
     Transactions, for recording and valuing OTC and related Transactions, or
     for detecting human error, systems failure or management failure.

There may be other significant risks that you should consider based on the terms
of a specific transaction. Highly customized OTC Transactions in particular may
increase liquidity risk and introduce other significant risk factors of a
complex character. Highly leveraged transactions may experience substantial
gains or losses in value as a result of relatively small changes in the value or
level of an underlying or related market factor.

Because the price and other terms on which you may enter into or terminate an
OTC Transaction are individually negotiated, these may not represent the best
price or terms available to you from other sources.

In evaluating the risks and contractual obligations associated with a particular
OTC Transaction, you should also consider that an OTC Transaction may be
modified or terminated only by mutual consent of the original parties and
subject to agreement on individually negotiated terms. Accordingly, it may not
be possible for you to modify, terminate or offset your obligations or your
exposure to the risks associated with a transaction prior to its scheduled
termination date.

Similarly, while market makers and dealers generally quote prices or terms for
entering into or terminating OTC Transactions and provide indicative or
mid-market quotations with respect to outstanding OTC Transactions, they are
generally not contractually obligated to do so. In addition, it
<PAGE>
may not be possible to obtain indicative or mid-market quotations for an OTC
Transaction from a market maker or dealer that is not a counterparty to the
transaction. Consequently, it may also be difficult for you to establish an
independent value for an outstanding OTC Transaction. You should not regard your
counterparty's provision of a valuation or indicative price at your request as
an offer to enter into or terminate the relevant transaction at that value or
price, unless the value or price is identified by the counterparty as firm or
binding.

THIS BRIEF STATEMENT DOES NOT PURPORT TO DISCLOSE ALL OF THE RISKS AND OTHER
MATERIAL CONSIDERATIONS ASSOCIATED WITH OTC TRANSACTIONS. YOU SHOULD NOT
CONSTRUE THIS GENERIC DISCLOSURE STATEMENT AS BUSINESS, LEGAL, TAX OR ACCOUNTING
ADVICE OR AS MODIFYING APPLICABLE LAW. YOU SHOULD CONSULT YOUR OWN BUSINESS,
LEGAL, TAX AND ACCOUNTING ADVISERS WITH RESPECT TO PROPOSED OTC TRANSACTIONS AND
YOU SHOULD REFRAIN FROM ENTERING INTO ANY OTC TRANSACTION UNLESS YOU HAVE FULLY
UNDERSTOOD THE TERMS AND RISKS OF THE TRANSACTION, INCLUDING THE EXTENT OF YOUR
POTENTIAL RISK OF LOSS.
<PAGE>

                     GUARANTEE OF MERRILL LYNCH & CO., INC.

     FOR VALUE RECEIVED, receipt of which is hereby acknowledged, Merrill Lynch
& Co., Inc., a corporation duly organized and existing under the laws of the
State of Delaware ("ML & CO."), hereby unconditionally guarantees to ALTERRA
HEALTHCARE CORPORATION (the "Company"), the due and punctual payment of any and
all amounts payable by Merrill Lynch Capital Services, Inc., a corporation
organized under the laws of the State of Delaware ("MLCS"), its successors and
permitted assigns, to the extent such successors or permitted assigns are direct
or indirect subsidiaries of ML & Co., under the terms of the Master Agreement
between the Company and MLCS, dated as of March 18, 2005 (the "Agreement"),
including, in case of default, interest on any amount due, when and as the same
shall become due and payable, whether on the scheduled payment dates, at
maturity, upon declaration of termination or otherwise, according to the terms
thereof. In case of the failure of MLCS punctually to make any such payment, ML
& Co. hereby agrees to make such payment, or cause such payment to be made,
promptly upon demand made by the Company to ML & Co.; provided, however that
delay by the Company in giving such demand shall in no event affect ML & Co.'s
obligations under this Guarantee. This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any payment
guaranteed hereunder, in whole or in part, is rescinded or must otherwise be
returned by the Company upon the insolvency, bankruptcy or reorganization of
MLCS or otherwise, all as though such payment had not been made.

     ML & Co. hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Agreement; the absence of any action to enforce the same; any waiver or consent
by the Company concerning any provisions thereof; the rendering of any judgment
against MLCS or any action to enforce the same; or any other circumstances that
might otherwise constitute a legal or equitable discharge of a guarantor or a
defense of a guarantor. ML & Co. covenants that this guarantee will not be
discharged except by complete payment of the amounts payable under the
Agreement. This Guarantee shall continue to be effective if MLCS merges or
consolidates with or into another entity, loses its separate legal identity or
ceases to exist.

     ML & Co. hereby waives diligence; presentment; protest; notice of protest,
acceleration, and dishonor; filing of claims with a court in the event of
insolvency or bankruptcy of MLCS; all demands whatsoever, except as noted in the
first paragraph hereof; and any right to require a proceeding first against
MLCS.

     ML & Co. hereby certifies and warrants that this Guarantee constitutes the
valid obligation of ML & Co. and complies with all applicable laws.

     This Guarantee shall be governed by, and construed in accordance with, the
laws of the State of New York.

     This Guarantee may be terminated at any time by notice by ML & Co. to the
Company given in accordance with the notice provisions of the Agreement,
effective upon receipt of such notice by the Company or such later date as may
be specified in such notice; provided, however, that this Guarantee shall
continue in full force and effect with respect to any obligation of MLCS under
the Agreement entered into prior to the effectiveness of such notice of
termination.
<PAGE>
     This Guarantee becomes effective concurrent with the effectiveness of the
Agreement, according to its terms.

     IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in
its corporate name by its duly authorized representative.

                                     MERRILL LYNCH & CO., INC.

                                     By:  /s/ Patricia Kropiewnicki
                                          Name:  Patricia Kropiewnicki
                                          Title:    Designated Signatory

                                     Date:  May 25, 2005
<PAGE>
                                    EXHIBIT A

RESOLVED, that any persons designated from time to time by the President and
Chief Executive Officer of the Corporation be, and each of such persons hereby
is, authorized:

     (i)  to enter into, on behalf of the Corporation, agreements and
          transactions (including options thereon) that (A) provide, in whole or
          in part, on a firm or contingent basis, for the purchase or sale
          ,of, or that are based on the value of, one or more commodities
          (including without limitation , electricity and natural gas),
          securities, currencies, interest or other rates, indices,'
          quantitative measures, or other financial or economic interests or
          real or personal property of any kind, (B) involve any payment or
          delivery that is dependent on the occurrence or non-occurrence of any
          event associated with a potential financial, economic, or commercial
          consequence, (C) constitute any and all similar products, (D)
          constitute any borrowing or lending transactions related to any of the
          foregoing, or (E) involve any combination or permutation of any of the
          foregoing (the "Product Transactions");

     (ii) to enter into any transactions with the purpose of hedging the
          obligations of the Corporation or positions of the Corporation in
          respect of Product Transactions, including, but not limited to, the
          purchase or sale of securities or commodities, options to purchase or
          sell securities or commodities, contracts for future delivery of
          securities or commodities or options on such contracts, or spot or
          forward foreign exchange transactions (the "Hedging Transactions");
          and

    (iii) to enter into any and all ancillary and related agreements (including
          by way of example only pledge agreements, confidentiality agreements
          and third-party custodian, transmission and other service agreements)
          that are necessary or appropriate to effect any of the foregoing (the
          "Related Agreements");

RESOLVED, that any Vice President, Treasurer or more senior officer of the
Corporation, and-any person (each, a "Designated Signatory") designated by any
such officer, be, and each of such persons hereby is, authorized to execute and
deliver agreements, contracts, instruments or other documentation evidencing the
Product Transactions, the Hedging Transactions and the Related Agreements (the
"Trading Documentation"), including master agreements relating thereto; and

RESOLVED, that all Trading Documentation executed and delivered prior to the
date hereof by any officer of the Corporation then serving, or any person
designated to execute and deliver such Trading Documentation by any officer of
the Corporation then serving, be, and it hereby is ratified and approved, and
that all such designations shall remain in full force and effect until revoked
or superseded by a subsequent designation, but in any event only for so long as
the relevant designated person shall be a full time employee of the Corporation
or any of its affiliates.
<PAGE>
                      MERRILL LYNCH CAPITAL SERVICES, INC.

                     CERTIFICATE OF INCUMBENCY AND AUTHORITY

     I, Locke R. McMurray, Secretary of Merrill Lynch Capital Services, Inc.
("the Corporation"), a corporation organized and existing under the laws of
Delaware, do hereby certify that:

     1.   Attached hereto as Exhibit A is a true and correct copy of certain
          resolutions (the "Resolutions") of the Board of Directors of the
          Corporation adopted on January 24, 2000, which resolutions have not
          been amended or rescinded since such date and are in full force and
          effect.

     2.   The person whose name appears below is and has been continuously
          authorized since April 19th, 2001 to execute and deliver, for or on
          behalf of the Corporation, confirmations, agreements, contracts,
          instruments or other documentation evidencing the transactions
          described in Exhibit A hereto.

     3.   The signature set forth opposite the below-listed name is the genuine
          signature of the person so named.

     NAME                                   SIGNATURE

     Richard Zaleski                        /s/ Rich Zaleski
     Signatory

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
said Corporation this May 25, 2005

                                     /s/ Locke R. McMurray
                                     Name:    Locke R. McMurray
                                     Title:      SecretaryMERRILL LYNCH

DATE:        MARCH 28, 2005

TO:          ALTERRA HEALTHCARE CORPORATION  ("Counterparty")
ATTENTION:   AKHIL SHARMA
TEL:         212-479-5280
FAX:         212-798-6070

FROM:        MERRILL LYNCH CAPITAL SERVICES, INC. ("MLCS")
CONTACT:     ANNE WON
EMAIL:       awon@exchange.ml.com
TEL:         212-449-8711
FAX:         917-778-0836

RE:          SWAP TRANSACTION

ML REF:      05DL04157, 2057792

Dear Sir or Madam:

     The purpose of this communication is to confirm the terms and conditions of
the transaction entered into between us on the Trade Date specified below (the
"Transaction"). This communication constitutes a "Confirmation" as referred to
in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. For these purposes, all
references in those Definitions to a "Swap Transaction" shall be deemed to apply
to the Transaction referred to herein. In the event of any inconsistency between
the Definitions and this Confirmation, the terms of this Confirmation shall
govern.

     This Confirmation evidences a complete and binding agreement between you
and us as to the terms of the Transaction to which this Confirmation relates. In
addition, you and we agree to use all reasonable efforts promptly to negotiate,
execute and deliver an agreement in the form of the ISDA Master Agreement
(Multicurrency-Cross Border) (the "Master Form"), with such modifications as you
and we will in good faith agree (the "Agreement"). Upon the execution by you and
us of the Agreement, this Confirmation will supplement, form a part of, and be
subject to the Agreement. All provisions contained in or incorporated by
reference in the Agreement upon its execution will govern this Confirmation
except as expressly modified below. Until we execute and deliver the Agreement,
this Confirmation, together with all other documents referring to the Master
Form (each a "Confirmation") confirming transactions (each a "Transaction")
entered into between us (notwithstanding anything to the contrary in a
Confirmation), shall supplement, form a part of, and subject to, an agreement in
the form of the Master Form as if we had executed an agreement in such form (but
without any Schedule except for the election of the laws of the State of New
York as the governing law and US Dollars as the Termination Currency) on the
Trade Date of the first such Transaction between us.
<PAGE>
MERRILL LYNCH

In the event of any inconsistency between the provisions of that agreement and
this Confirmation, this Confirmation will prevail for the purpose of this
Transaction.

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

<TABLE>
<S>                             <C>
Notional Amount:                USD 70,000,000.00

Trade Date:                     March 18, 2005

Effective Date:                 March 22, 2005

Termination Date:               March 22, 2012

Fixed Amounts:

Fixed Rate Payer:               Counterparty

Fixed Rate Payer
Payment Date:                   The 22nd day of each month in each year,
                                commencing on April 22, 2005 and ending on the
                                Termination Date, inclusive, subject to
                                adjustment in accordance with the Modified
                                Following Business Day Convention.

Fixed Rate:                     4.700000% per annum

Fixed Rate Payer
Day Count Fraction:             30/360

No Adjustment of
Period End Dates:               Inapplicable

Floating Amounts:

Floating Rate Payer:            MLCS

Floating Rate Payer
Payment Date:                   The 22nd day of each month in each year,
                                commencing on April 22, 2005 and ending on the
                                Termination Date, inclusive, subject to
                                adjustment in accordance with the Modified
                                Following Business Day Convention.
</TABLE>
<PAGE>
MERRILL LYNCH

<TABLE>
<S>                             <C>
Floating Rate for
initial Calculation Period:     2.850000%

Floating Rate Option:           USD-LIBOR-BBA

Designated Maturity:            One Month

Spread:                         Inapplicable

Floating Rate Payer
Day Count Fraction:             Actual/360

No Adjustment of
Period End Dates:               Inapplicable

Reset Dates:                    The first day of each Floating Rate Payer
                                Calculation Period

Rate Cut-Off Dates:             Inapplicable

Averaging:                      Inapplicable

Compounding:                    Inapplicable

Business Days:                  New York and London

Calculation Agent:              MLCS, unless otherwise specified in the
                                Agreement

Collateral:                     (a) Until the execution of a Credit Support
                                Annex between the parties, this Confirmation
                                shall constitute a pledge agreement (and a
                                Credit Support Document under the Agreement)
                                securing the payment and performance of
                                Counterparty's obligations to MLCS under this
                                and any other Transaction between the parties.
                                Promptly after the execution hereof, MLCS and
                                Counterparty agree to execute a Credit Support
                                Annex in form and substance reasonably
                                satisfactory to the parties. Upon execution, the
                                Credit Support Annex shall supersede and replace
                                the pledge agreement created hereby.

                                (b) If at any time a Required Amount (as defined
                                below) exists, Counterparty, as security for its
                                obligations to MLCS, shall, promptly upon
</TABLE>
<PAGE>
MERRILL LYNCH

<TABLE>
<S>                             <C>
                                demand by MLCS, pledge, transfer and deliver to
                                MLCS, and grant MLCS a first priority continuing
                                security interest in and right of set-off
                                against, Eligible Collateral (as defined below)
                                having a minimum market value equal to the
                                Required Amount.

                                (c) Upon any default by Counterparty in the
                                performance of its obligations to MLCS hereunder
                                or under any other Transaction with MLCS, MLCS
                                shall have all rights of a secured creditor
                                under the New York Uniform Commercial Code.

                                (d) The term "Eligible Collateral" means U.S.
                                denominated cash, U.S. Treasury Securities and
                                any other form of collateral agreed to between
                                the parties.

                                The term "Required Amount" means the amount by
                                which the value of any positive "Net Market
                                Quotation" (as defined below) exceeds USD 0/USD
                                0. A positive Net Market Quotation shall mean
                                that MLCS is exposed to Counterparty and a
                                negative Net Market Quotation shall mean that
                                Counterparty is exposed to MLCS.

                                The term "Net Market Quotation" means an amount
                                equal to the sum of all Market Quotations (both
                                positive and negative) for all Transactions
                                between the parties assuming all such
                                Transactions were being terminated as of the
                                relevant date of valuation; provided, however,
                                that Market Quotation will be determined by MLCS
                                using its mid-market estimates of the amounts
                                that would be paid for Replacement Transactions
                                (as such term is defined in the definition of
                                "Market Quotation").

                                Please contact Collateral Management, at
                                telephone: (212) 449-3782, facsimile: (212)
                                738-1492, for delivery instructions for
                                securities.

Non-Reliance:                   Each party represents to the other party that it
                                is acting for its own account, and has made its
                                own independent decisions to enter into this
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<PAGE>
MERRILL LYNCH

<TABLE>
<S>                             <C>
                                Transaction and as to whether this Transaction
                                is appropriate or proper for it based on its own
                                judgement and upon advice from such advisors as
                                it has deemed necessary. It is not relying on
                                any communication (written or oral) of the other
                                party as investment advice or as a
                                recommendation to enter into this Transaction,
                                it being understood that information and
                                explanations related to the terms and conditions
                                of this Transaction shall not be considered
                                investment advice or a recommendation to enter
                                into this Transaction. No communication (written
                                or oral) received from the other party shall be
                                deemed to be an assurance or guarantee as to the
                                expected results of this Transaction.

Account Details:

USD payments to MLCS:           DEUTSCHE BANK TRUST COMPANY
                                AMERICAS (NEW YORK, NY: 021001033)
                                FAO: MERRILL LYNCH CAPITAL
                                SERVICES, INC., NEW YORK., NY
                                Acct: 00-811-874

USD payments to Counterparty:   Please Advise
</TABLE>
<PAGE>
MERRILL LYNCH

Please confirm that the foregoing correctly sets the terms of our agreement by
executing this Confirmation and returning it to us by facsimile transmission.

Yours sincerely,

MERRILL LYNCH CAPITAL SERVICES, INC.

By: /s/ Angelina Lopes
    --------------------------------
Authorized Signatory

Accepted and confirmed as of the Trade
Date written above:

ALTERRA HEALTHCARE CORPORATION

By: /s/ Kristin A. Ferge
    --------------------------------
Authorized Signatory
Name: Kristin A. Ferge
      ------------------------------
Title: CFO/VP
       -----------------------------

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