Document:

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(MULTICURRENCY--CROSS BORDER)

                             [ISDA LOGO OMITTED] (R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                         dated as of                 2003

                        BARCLAYS BANK PLC ("PARTY A") AND

  PERPETUAL TRUSTEES VICTORIA LIMITED (ABN 47 004 027 258) IN ITS CAPACITY AS
                                 TRUSTEE OF THE
            INTERSTAR MILLENNIUM SERIES 2003-3G TRUST ("PARTY B") AND
 INTERSTAR SECURITISATION MANAGEMENT PTY LIMITED (ACN 100 346 898) (THE "TRUST
                                   MANAGER")

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.

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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;

               (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

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               (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 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 organized and validly existing under the laws of
         the jurisdiction of its organization or incorporation and, if relevant
         under such laws, in good standing;

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         (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 authorize 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, reorganization,
         insolvency, moratorium or similar laws affecting creditors' rights
         generally and subject, as to enforceability, to equitable principles of
         general application (regardless of whether enforcement is sought in a
         proceeding in equity or at law)).

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

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

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

(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

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

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

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

(e)      PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated, organized, 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;

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         (iii) CREDIT SUPPORT DEFAULT.

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

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

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

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

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

         (vi) CROSS DEFAULT. If "Cross Default" is specified in the Schedule as
         applying to the party, the occurrence or existence of (1) a default,
         event of default or other similar condition or event (however
         described) in respect of such party, any Credit Support Provider of
         such party or any applicable Specified Entity of such party under one
         or more agreements or instruments relating to Specified Indebtedness of
         any of them (individually or collectively) in an aggregate amount of
         not less than the applicable Threshold Amount (as specified in the
         Schedule) which has resulted in such Specified Indebtedness becoming,
         or becoming capable at such time of being declared, due and payable
         under such agreements or instruments, before it would otherwise have
         been due and payable or (2) a default by such party, such Credit
         Support Provider or such Specified Entity (individually or
         collectively) in making one or more payments on the due date thereof in
         an aggregate amount of not less than the applicable Threshold Amount
         under such agreements or instruments (after giving effect to any
         applicable notice requirement or grace period);

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

                (1) is dissolved (other than pursuant to a consolidation,
                amalgamation or merger); (2) becomes insolvent or is unable to
                pay its debts or fails or admits in writing its inability
                generally to pay its debts as they become due; (3) makes a
                general assignment, arrangement or composition with or for the
                benefit of its creditors; (4) institutes or has instituted
                against it a proceeding seeking a judgment of insolvency or
                bankruptcy or any other relief under any bankruptcy or
                insolvency law or other similar law affecting creditors' rights,
                or a petition is presented for its winding-up

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                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 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;

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

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

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

         (v) ADDITIONAL TERMINATION EVENT. If any "Additional Termination Event"
         is specified in the Schedule or any Confirmation as applying, the
         occurrence of such event (and, in such event, the Affected Party or
         Affected Parties shall be as specified for such Additional Termination
         Event in the Schedule or such Confirmation).

(c)      EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which
would otherwise constitute or give rise to an Event of Default also constitutes
an Illegality, it will be treated as an Illegality and will not constitute an
Event of Default.

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).

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(b)      RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

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

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

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

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

         (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)(1)
         or a Tax Event occurs and there are two Affected Parties, each party
         will use all reasonable efforts to reach agreement within 30 days after
         notice thereof is given under Section 6(b)(i) on action to avoid that
         Termination Event.

         (iv)  RIGHT TO TERMINATE.  If:--

               (1) a transfer under Section 6(b)(ii) or an agreement under
               Section 6(b)(iii), as the case may be, has not been effected with
               respect to all Affected Transactions within 30 days after an
               Affected Party gives notice under Section 6(b)(i); or

               (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon
               Merger or an Additional Termination Event occurs, or a Tax Event
               Upon Merger occurs and the Burdened Party is not the Affected
               Party,

         either party in the case of an Illegality, the Burdened Party in the
         case of a Tax Event Upon Merger, any Affected Party in the case of a
         Tax Event or an Additional Termination Event if there is more than one
         Affected Party, or the party which is not the Affected Party in the
         case of a Credit Event Upon Merger or an Additional Termination Event
         if there is only one Affected Party may, by not more than 20 days
         notice to the other party and provided that the relevant Termination
         Event is then 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.

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

(d)      CALCULATIONS.

         (i) STATEMENT. On or as soon as reasonably practicable following the
         occurrence of an Early Termination Date, each party will make the
         calculations on its part, if any, contemplated by Section 6(e) and will
         provide to the other party a statement (1) showing, in reasonable
         detail, such calculations (including all relevant quotations and
         specifying any amount payable under Section 6(e)) and (2) giving
         details of the relevant account to which any amount payable to it is to
         be paid. In the absence of written confirmation from the source of a
         quotation obtained in determining a Market Quotation, the records of
         the party obtaining such quotation will be conclusive evidence of the
         existence and accuracy of such quotation.

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

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

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

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

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

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

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                                                                         Page 10

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               number, the Defaulting Party will pay it to the Non-defaulting
               Party; if it is a negative number, the Non-defaulting Party will
               pay the absolute value of that amount to the Defaulting Party.

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

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

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

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

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

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

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

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

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

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                                                                         Page 11

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7.       TRANSFER

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

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

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

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

8.       CONTRACTUAL CURRENCY

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

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

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

(d)      EVIDENCE OF LOSS. For the purpose of this Section 8, it will be
sufficient for a party to demonstrate that it would have suffered a loss had an
actual exchange or purchase been made.

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                                                                         Page 12

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9.       MISCELLANEOUS

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

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

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

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

(e)      COUNTERPARTS AND CONFIRMATIONS.

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

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

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

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

10.      OFFICES; MULTIBRANCH PARTIES

(a)      If Section 10(a) is specified in the Schedule as applying, each party
that enters into a Transaction through an Office other than its head or home
office represents to the other party that, notwithstanding the place of booking
office or jurisdiction of incorporation or organization 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.

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                                                                         Page 13

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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;

         (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 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.

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

(c)      SERVICE OF PROCESS. Each party irrevocably appoints the Process Agent
(if any) specified opposite its name in the Schedule to receive, for it and on
its behalf, service of process in any Proceedings. If for any reason any party's
Process Agent is unable to act as such, such party will promptly notify the
other party and within 30 days appoint a substitute process agent acceptable to
the other party. The parties irrevocably consent to service of process given in
the manner provided for notices in Section 12. Nothing in this Agreement will
affect the right of either party to serve process in any other manner permitted
by law.

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

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).

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                                                                         Page 15

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"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, authorization, 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.

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

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

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

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

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

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

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

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

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

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

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

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

"SPECIFIED ENTITY" has the meaning specified in the Schedule.

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

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

"STAMP TAX" means any stamp, registration, documentation or similar tax.

"TAX" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

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

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

--------------------------------------------------------------------------------
                                                                         Page 18

<PAGE>

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 19

<PAGE>

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.

<TABLE>
<CAPTION>
<S>                                                         <C>
                                                            Perpetual Trustees Victoria Limited (ABN 47 004 027
                Barclays Bank PLC                            258) in its capacity as trustee of the Interstar
                                                                      Millennium Series 2003-3G Trust
....................................................        ......................................................
                    (Party A)                                                    (Party B)

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

 Interstar Securitisation Management Pty Limited
                (ACN 100 346 898)

....................................................
                 (Trust Manager)

By:................................................
    Name:
    Title:
    Date:
</TABLE>

--------------------------------------------------------------------------------
nuas S0111112412v2 000000  27.5.2003                                     Page 20
<PAGE>

                                    SCHEDULE

                                     TO THE

                              ISDA MASTER AGREEMENT

                         DATED AS OF                 2003

                                     Between

                          BARCLAYS BANK PLC ("PARTY A")

                                       AND

   PERPETUAL TRUSTEES VICTORIA LIMITED (ABN 47 004 027 258) IN ITS CAPACITY AS
      TRUSTEE OF THE INTERSTAR MILLENNIUM SERIES 2003-3G TRUST ("PARTY B")

                                       AND

     INTERSTAR SECURITISATION MANAGEMENT PTY LIMITED (ACN 100 346 898) (THE
                                "TRUST MANAGER")

                                     PART 1

                             TERMINATION PROVISIONS

(a)  "SPECIFIED ENTITY" is not applicable in relation to Party A or Party B.

(b)  "SPECIFIED TRANSACTION" is not applicable.

(c)  (i)  (A)  Sections 5(a)(ii), (iii), (iv), (v), (vi), 5(b)(ii), (iii) and
               (iv) will not apply to Party B.

          (B)  Sections 5(a)(ii), (iii), (iv), (v), (vi), 5(b)(ii), (iii) and
               (iv) will not apply to Party A.

     (ii) Replace Section 5(a)(i) with:

          "(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 at or
          before 10:00am on the tenth Local Business Day after the due date,
          except that:

               (A) no Event of Default shall result from Party B's failure to
               pay an amount due under this Agreement where Party B has
               sufficient funds with its bankers (as certified by the Trust
               Manager on behalf of Party B in a written notice to Party A
               immediately upon the Trust Manager becoming aware of Party B's
               inability to pay such due amount) with which the bank accounts of
               the Trust are held and has given instructions to those bankers to
               make that payment, and that payment would have been made but for
               temporary technical or administrative difficulties outside the
               control of Party B (as certified by the Trust Manager on behalf
               of Party B in a

--------------------------------------------------------------------------------
                                                                         Page 21

<PAGE>

               written notice to Party A within 10 Local Business Days after the
               due date or immediately thereafter); and

               (B) in the event that sub-paragraph (A) applies, Party A has no
               obligation to make a corresponding payment under this Agreement
               until such time as it actually receives funds from Party B;".

(d)  Section 5(a)(vii) "BANKRUPTCY" is replaced with the following:

     "An Insolvency Event has occurred in respect of Party A or Party B.
     However, the occurrence of an Insolvency Event in respect of Party B in its
     personal capacity will not constitute an Event of Default provided that
     within thirty Business Days of that occurrence, Party B and the Trust
     Manager are able to procure the novation of this Agreement and all
     Transactions to a third party (who is notified to Party A) in respect of
     which the Designated Rating Agencies confirm that the novation will not
     cause a reduction or withdrawal of the rating of any Notes."

(e)  Section 5(b)(i) "ILLEGALITY" is amended by adding the following paragraph
     at the end:

     "This sub paragraph (i) does not apply to the imposition by the Australian
     government or any agency of the Australian government of any exchange
     control restrictions or prohibitions ("EXCHANGE CONTROLS"). For the
     avoidance of doubt:

     (A)  exchange controls do not constitute an Illegality or Event of Default
          or Termination Event under this Agreement, and do not entitle a party
          to terminate a Transaction or otherwise refuse to make any payments it
          is obliged to make under a Transaction; and

     (B)  to the extent permitted by law, delivery by Party B of Australian
          dollar amounts required to be paid by it under any relevant
          Confirmation to the bank account specified in that Confirmation will
          constitute proper payment of those amounts by Party B and Party A's
          obligations under this Agreement will be unaffected by any such
          exchange controls."

(f)  For the purpose of Section 5(b)(v), "ADDITIONAL TERMINATION EVENT" means
     each of the following:

     (i)  Party B or a Paying Agent becomes obliged to make a withholding or
          deduction for or on account of Tax in respect of any Notes or any
          payment to Party A under any Transaction or an Obligor becomes obliged
          to make a withholding or deduction for or on account of Tax in respect
          of any payout under a Purchased Loan and the Notes are redeemed as a
          result in accordance with clause 6.6(d) of the Series Notice (in which
          case Party A is the Affected Party only for the purpose of
          termination) (but for the purposes of Section 6(e)(ii)(1), Party A
          will be the Non-defaulting Party);

     (ii) Party A fails to comply with the requirements of Section 18 (in which
          case Party A is the Affected Party); and

--------------------------------------------------------------------------------
                                                                         Page 22

<PAGE>

     (iii) an Event of Default (as defined in the Security Trust Deed) occurs
          and the Security Trustee enforces the security under the Security
          Trust Deed (in which case Party B is the Affected Party (unless the
          Event of Default results from a failure by Party A to fulfil its
          obligations under this Agreement, in which case Party A is the
          Affected Party)).

(g)  The "AUTOMATIC EARLY TERMINATION" provisions of Section 6(a):

     will not apply to Party A.

     will not apply to Party B.

(h)  Section 6(a) is amended by replacing "20 days" in line 3 with "10 Local
     Business Days".

(i)  Add a new Section 6(aa) after Section 6(a):

               "(aa) RESTRICTED TERMINATION RIGHTS

                    (i)  TERMINATION BY PARTY B: Subject to Part 5(s) of this
                         Schedule, Party B must not designate an Early
                         Termination Date without the prior written consent of
                         the Note Trustee.

                    (ii) NOTIFICATION: Each Party may only designate an Early
                         Termination Date following written notification to the
                         other Party as to the timing of the Early Termination
                         Date (which must be a date not earlier than 2 Local
                         Business Days after the delivery of such notification)
                         and, in the case of Party B, after consultation with
                         the Note Trustee.

                    (iii) TRANSFER WHERE PARTY B DOES NOT GROSS-UP: If any
                         payment by Party B to Party A under this Agreement is,
                         or is likely to be, made subject to any deduction or
                         withholding on account of Tax, Party B will endeavor to
                         procure the substitution as principal obligor under
                         this Agreement in respect of each affected Transaction
                         of a Party B incorporated in another jurisdiction
                         approved by Party A and the Note Trustee and in respect
                         of which the Designated Rating Agencies confirm that
                         the substitution will not cause a reduction or
                         withdrawal of the rating of any Notes."

(j)  In Section 6(b)(ii), add the words "or to any other person" after the word
     "Affiliates" in the second last line of the first paragraph and add the
     words "so long as the transfer in respect of that Transaction would not
     lead to a

--------------------------------------------------------------------------------
                                                                         Page 23

<PAGE>

     downgrade or withdrawal of the rating of any Notes" after the words "ceases
     to exist" at the end of the first paragraph.

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

     (i)  Market Quotation will apply; and

     (ii) the Second Method will apply.

(l)  In Section 6(e), delete the sentence at the end of the first paragraph:
     "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."

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

(n)  (i)  Replace paragraph (a) of Section 7 with the following:

          "(a) (i) (subject to sub-paragraph (ii)) Party A may make such a
          transfer, without the prior consent of any Designated Rating Agency or
          the other parties, pursuant to a consolidation, amalgamation with, or
          merger with or into, or transfer of all or substantially all of its
          assets to, or reorganisation, incorporation, reincorporation or
          reconstitution into or as another entity (but without prejudice to any
          other right or remedy under this Agreement); and

               (ii) the transfer referred to in sub-paragraph (i) may only be
          made where the transferee of all of Party A's interest or obligation
          in or under this Agreement has a short term credit rating of A-1+ from
          S&P and a long term credit rating of at least A2 and a short term
          credit rating of P-1 from Moody's; and"

     (ii) Add a new paragraph to Section 7, immediately below paragraph (b):

          "(c) in the event that a trustee is appointed as a successor to Party
          B under the Master Trust Deed and the Series Notices (the "SUCCESSOR
          TRUSTEE"), Party A undertakes that it shall (unless, at the time the
          Successor Trustee is so appointed, Party A is entitled to terminate
          the Transaction under Section 6, in which case it may) execute a
          novation agreement novating to the Successor Trustee the Transaction
          on the same terms or on other terms to be agreed between Party A,
          Party B and the Successor Trustee, and give written notice to each
          Designated Rating Agency of such novation."

--------------------------------------------------------------------------------
                                                                         Page 24

<PAGE>

                                     PART 2

                               TAX REPRESENTATIONS

(a)  PAYER TAX REPRESENTATIONS

     For the purpose of Section 3(e), each of Party A and Party B makes the
     following representation:

     It is not required by any current 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)) to be made by it to the other party under this Agreement. In making
     this representation, it may rely on:

     (i)  the satisfaction of the agreement contained in Section 4(a)(i) or
          4(a)(iii) and the accuracy and effectiveness of any document provided
          by the other party pursuant to Section 4(a)(i) or 4(a)(iii); and

     (ii) the satisfaction of the agreement of the other party contained in
          Section 4(d),

     provided that it shall not be a breach of this representation where
     reliance is placed on paragraph (i) and the other party does not deliver a
     form or document under Section 4(a)(iii) by reason of material prejudice to
     its legal or commercial position.

(b)  PAYEE TAX REPRESENTATIONS

     (i) For the purpose of Section 3(f), Party B makes the following
     representations:

     (A) It is an Australian resident and does not derive the payments under
     this Agreement in part or in whole in carrying on business in a country
     outside Australia at or through a permanent establishment of itself in that
     country and;

     (B) It is a non-United States branch of a foreign person for United States
     Federal income tax purposes.

     (ii) For the purpose of Section 3(f), Party A makes the following
     representations:

     (A) With respect to payments made to Party A which are not effectively
     connected to the United States:

     It is a non United States branch of a foreign person for United States
     Federal income tax purposes; and

     (B) With respect to payments made to Party A which are effectively
     connected to the United States:

--------------------------------------------------------------------------------
                                                                         Page 25

<PAGE>

         Each payment received or to be received by it in connection with this
         Agreement will be effectively connected with its conduct of a trade or
         business in the United States.

                                     PART 3

                            DOCUMENTS TO BE DELIVERED

For the purposes of Section 4(a)(i) and (ii) 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        DOCUMENT                        DATE BY WHICH TO BE DELIVERED
DELIVER
------------------------ ------------------------------- -------------------------------------------
<S>                      <C>                             <C>
Party A and              Any document or certificate     (i)  On the execution of this Agreement;
Party B.                 reasonably required or               and
                         reasonably requested by a
                         party in connection with its    (ii) subsequently, upon demand.
                         obligations to make a payment
                         under this Agreement which
                         would enable that party to
                         make the payment free from
                         any deduction or withholding
                         for or on account of Tax or
                         as would reduce the rate at
                         which deduction or
                         withholding for or on account
                         of Tax is applied to that
                         payment.
------------------------ ------------------------------- -------------------------------------------
</TABLE>

(b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
------------------------ ------------------------------- ------------------------ ------------------
PARTY REQUIRED TO        DOCUMENT                        DATE BY WHICH TO BE      COVERED BY
DELIVER                                                  DELIVERED                SECTION 3(d)
                                                                                  REPRESENTATIONS
------------------------ ------------------------------- ------------------------ ------------------
<S>                      <C>                             <C>                      <C>
Party A, Party B and     A copy of the power of          On execution and         Yes.
the Trust Manager.       attorney authorising            delivery of this
                         execution by the attorney of    Agreement.
                         this Agreement.
------------------------ ------------------------------- ------------------------ ------------------
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 26
<PAGE>

<TABLE>
------------------------ ------------------------------- ------------------------ ------------------
<S>                      <C>                             <C>                      <C>
Party A, Party B and     A list of authorised            On execution of any      Yes.
the Trust Manager.       signatories for the party and   relevant Confirmation.
                         evidence satisfactory in form
                         and substance to the other
                         parties of the authority of
                         the authorised signatories of
                         the party to execute each
                         Confirmation on behalf of that
                         party.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of the Master Trust      On execution and         No.
                         Deed, the Series Notice, the    delivery of this
                         Security Trust Deed, the Note   Agreement or in the
                         Trust Deed, the Notice of       case of a document not
                         Creation of Trust and the       executed as at the
                         Agency Agreement.               date of this
                                                         Agreement, upon
                                                         execution of that
                                                         document.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of an Australian legal   On or before the Note    No.
                         opinion addressed to, among     Issue Date.
                         others, Party A in form and
                         substance satisfactory to
                         Party A.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of an Australian tax     On or before the Note    No.
                         opinion addressed to, among     Issue Date.
                         others, Party A in form and
                         substance satisfactory to
                         Party A.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of any notice provided   At such time as the      Yes.
                         by the Trust Manager to Class   relevant notice is
                         A2 Noteholders.                 provided by the Trust
                                                         Manager to Class A2
                                                         Noteholders.
------------------------ ------------------------------- ------------------------ ------------------
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 27

<PAGE>

                                     PART 4

                                  MISCELLANEOUS

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

     ADDRESS FOR NOTICES TO PARTY A:

     For notices regarding operation, payment and confirmation matters only,
     notices should be sent to the branch set out in the relevant Confirmation
     (as may be amended from time to time) with a copy, in the case of notices
     or communications relating to Sections 5, 6, 7, 11 or 13, to:

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

     Attention:        Derivatives Director, Legal Division (marked urgent)

     Facsimile:        (+44) 207 773 4932

     Telephone:        (+44) 207 773 2224

     ADDRESS FOR NOTICES TO PARTY B:

     Level 7, 9 Castlereagh Street, Sydney, New South Wales, 2000

     Attention:        Manager Securitisation

     Facsimile:        612 9221 7870

     Telex:            N/A

     ADDRESS FOR NOTICES TO THE TRUST MANAGER:

     Level 31, 367 Collins Street, Melbourne, Victoria, 3000, Australia

     Attention:        Managing Director

     Facsimile:        613 9621 2368

     Telex:            N/A

(b)  PROCESS AGENT: For the purposes of Section 13(c) of this Agreement:

     Party A appoints as its Process Agent:               Not applicable.

     Party B appoints as its Process Agent:

     Mallesons Stephen Jaques London
     6th Floor
     Alder Castle
     10 Noble Street
     London EC2V 7JX

     OFFICES:  The provisions of Section 10(a) will not apply to this Agreement.

(c)  MULTIBRANCH PARTY: For the purposes of Section 10(c) of this Agreement:

     Party A is a Multibranch Party and may act through its Offices in London,
     New York, Tokyo, Hong Kong, Singapore and Sydney.

--------------------------------------------------------------------------------
                                                                         Page 28

<PAGE>

     Party B is not a Multibranch Party.

(d)  CALCULATION AGENT: The Calculation Agent is Party A unless:

     (i)  otherwise specified in a Confirmation in relation to the relevant
          Transaction; or

     (ii) an Event of Default (where Party A is the Defaulting Party) has
          occurred, in which case the Calculation Agent will be the Trust
          Manager.

     All calculations made by the Calculation Agent must be made in good faith
     and through the exercise of the Calculation Agent's commercially reasonable
     judgment. If any party objects in good faith to any calculation made by the
     Calculation Agent, the parties must negotiate in good faith to agree on an
     independent lead dealer to make such calculation, and if they cannot so
     agree within three Business Days, they will each promptly choose an
     independent leading dealer and instruct such dealers to agree on another
     independent leading dealer to make such calculation. The calculation of any
     such dealer so appointed will be binding on the parties in the absence of
     manifest error and the costs of such appointment will be shared equally
     between Party A and Party B.

(e)  CREDIT SUPPORT DOCUMENT: Details of any Credit Support Document:

     (i)  In relation to Party A: Nil.

     (ii) In relation to Party B: Nil.

(f)  CREDIT SUPPORT PROVIDER:

     (i)  In relation to Party A: Nil.

     (ii) In relation to Party B: Nil.

(g)  GOVERNING LAW: This Agreement will be governed by and construed in
     accordance with the laws of England and Wales.

(h)  NETTING OF PAYMENTS: Sub-paragraph (ii) of Section 2(c) will not apply.

(i)  "AFFILIATE" will have the meaning specified in Section 14. For the purposes
     of Section 3(c), Party B is deemed not to have any Affiliates.

                                     PART 5

                                OTHER PROVISIONS

(a)  In Section 2(a)(i) add the following sentence:

     Each payment will be by way of exchange for the corresponding payment or
     payments payable by the other party and, in the case of any payment payable
     by Party A to Party B, will be discharged by Party A depositing that
     payment on the due date into the US$ Account."

--------------------------------------------------------------------------------
                                                                         Page 29

<PAGE>

(b)  In Section 2(a)(ii), after "freely transferable funds" add "free of any
     set-off, counterclaim, deduction or withholding (except as expressly
     provided in this Agreement)".

(c)  Add the following new sentence to Section 2(b):

          "Each new account so designed must be in the same tax jurisdiction as
          the original account."

(d)  Delete the word "if" at the beginning of Section 2(d)(i)(4) and insert the
     following words instead:

          "if and only if X is Party A and".

(e)  In Section 2(d)(ii) insert the words "(if and only if Y is Party A)" after
     the word "then" at the beginning of the last paragraph. Party B will have
     no obligation to pay any amount to Party A under Section 2(d)(ii), and may
     make any payment under or in connection with this Agreement net of any
     deduction or withholding referred to in Section 2(d)(i).

(F)  ADDITIONAL REPRESENTATIONS: In Section 3 add the following immediately
     after paragraph (f):

          "(g) NON ASSIGNMENT. It has not assigned (whether absolutely, in
          equity or otherwise) or declared any trust over any of its rights
          under this Agreement or any Transaction (other than, in respect of
          Party B, the trust created pursuant to the Master Trust Deed and the
          Series Notice) and has not given any charge over its rights under this
          Agreement or any Transaction in the case of Party A, or any charge
          over the assets of the Trust (other than under the Security Trust
          Deed), in the case of Party B."

(g)  In Section 4 add a new paragraph as follows:

          "(f) CONTRACTING AS PRINCIPAL. Party A will enter into all
          Transactions as principal and not otherwise and Party B will enter
          into all Transactions in its capacity as trustee of the Trust and not
          otherwise. Any reference to Party B in this Agreement is in its
          capacity as trustee of the Trust."

(h)  CONFIRMATIONS. With respect to each Transaction entered into pursuant to
     this Agreement and for the purposes of Section 9(e)(ii), Party A will, on
     or promptly after the relevant Trade Date, send Party B (with a copy to the
     Trust Manager) a Confirmation confirming that Transaction and both Party B
     and the Trust Manager must promptly then confirm the accuracy of or request
     the correction of such Confirmation. Notwithstanding the provisions of
     Section 9(e)(ii), where a Transaction is confirmed by means of facsimile or
     an electronic messaging system, such message will constitute a Confirmation
     even where not so specified in that Confirmation.

(i)  Section 12 is amended as follows:

     (i)  In Section 12(a), delete the words "(except that a notice or other
          communication under Section 5 or 6 may not be given by facsimile
          transmission or electronic messaging system)" in lines 2 and 3.

--------------------------------------------------------------------------------
                                                                         Page 30

<PAGE>

     (ii) Section 12(a)(iii) is replaced with:

          "(iii) if sent by facsimile transmission, on the date a transmission
          report is produced by the machine from which the facsimile was sent
          which indicates that the facsimile was sent in its entirety to the
          facsimile number of the recipient notified for the purpose of this
          Section, unless the recipient notifies the sender within one Local
          Business Day of the facsimile being sent that the facsimile was not
          received in its entirety and in legible form."

     (iii) In Section 12(a)(v), replace the words "electronic message is
          received" with "the facsimile transmission confirming the electronic
          message is sent and deemed effective in accordance with sub-paragraph
          (iii)".

(j)  Section 14 of the Agreement is modified as follows:

(i)  New definitions are inserted as follows:

          "ACCEPTABLE ARRANGEMENT" means an arrangement which each relevant
          Designated Rating Agency has confirmed in writing will result in the
          avoidance or reversal of any Note Downgrade.

          "AGENCY SECURITIES" means negotiable debt obligations which are fully
          guaranteed as to both principal and interest by the Federal National
          Mortgage Association, the Government National Mortgage Association or
          the Federal Home Loan Mortgage Corporation.

          "APPROVED BANK" means a Bank which has a short term credit rating of
          A-1+ from S&P and P-1 from Moody's.

          "CASH COLLATERAL AMOUNT" means, at any time, an amount equal to the
          lesser of:

          (a)  CCR; and

          (b)  an amount acceptable to Moody's and sufficient to maintain the
               credit rating assigned to the Notes by Moody's immediately prior
               to the relevant Downgrade.

          "CCR" means the amount calculated as follows:

                           CCR = CR X 1.030

          "CR" means MTM + VB.

          "DOWNGRADE" means the withdrawal or downgrade of Party A's credit
          rating by a Designated Rating Agency resulting in Party A not having
          the Required Rating.

          "ELIGIBLE INVESTMENT" means:

          (a) US$ Cash;

--------------------------------------------------------------------------------
                                                                         Page 31

<PAGE>

          (b) Negotiable debt obligations issued by the United States Treasury
          Department having a remaining maturity of one year or less from the
          Valuation Date;

          (c) Negotiable debt obligations issued by the United States Treasury
          Department having a remaining maturity of more than one year but less
          than ten years from the Valuation Date;

          (d) Negotiable debt obligations issued by the United States Treasury
          Department having a remaining maturity of ten years or more from the
          Valuation Date;

          (e) Agency Securities having a remaining maturity of one year or less
          from the Valuation Date;

          (f) Agency Securities having a remaining maturity of more than one
          year but less than ten years from the Valuation Date;

          (g) Agency Securities having a remaining maturity of ten years or more
          from the Valuation Date;

          (h) any other form of collateral acceptable to the Designated Rating
          Agencies,

          each with a valuation percentage agreed by the Designated Rating
          Agency in good faith using commercially reasonable procedures.

          "EXPOSURE" means, with respect to a party on a Valuation Date, the
          amount, if any, that would be payable to that party by the other party
          (expressed as a positive number) or by that party to the other party
          (expressed as a negative number) pursuant to Section 6(e)(ii)(1) of
          this Agreement if all Transactions were being terminated as of the
          relevant Valuation Time.

          "MASTER TRUST DEED" means that the Master Trust Deed dated 2 December
          1999 between Perpetual Trustees Victoria Limited and Interstar
          Securities (Australia) Pty Limited.

          "MAJOR DOWNGRADE" means a Downgrade resulting in Party A having:

          (a) a short term credit rating of less than A-1 by S&P; or

          (b)  a long term credit rating of less than A3 by Moody's.

          "MINOR DOWNGRADE" means any Downgrade which is not a Major Downgrade.

--------------------------------------------------------------------------------
                                                                         Page 32

<PAGE>

          "MORTGAGED PROPERTY" has the meaning given in the Security Trust Deed.

          "MTM" means the mark-to-market value of the Transactions outstanding
          under this Agreement. Party A will have to mark the Transactions to
          market and post collateral on a daily basis, with a cure period of 3
          days.

          In determining the MTM, Party A will:

          (a) rely upon the following assumptions:

          (i) no amortisation on the swap for N months and then 100%
          amortisation, which takes into consideration the current historical
          prepayment rates as well as future prepayment volatility up to a 99%
          confidence interval, assuming no clean up call; and

          (ii) Party A is paying a spread of [0.27%] + X%,

          or

          (b) use any other method as agreed between Party A and each Designated
          Rating Agency.

          If, within 5 Business Days of the relevant downgrade, or as otherwise
          agreed with each Designated Rating Agency, Party A and the Designated
          Rating Agencies are unable to agree upon the collateral amount, the
          Valuation Agent will recalculate the Exposure by:

                    calculating that part of the Exposure attributable to the
                    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, then fewer than four quotations may be used, and
                    if no quotations are available for a particular Transaction,
                    then the Valuation Agent's calculations will be used for the
                    Transaction, using commercially reasonable terms and
                    assumptions, as such are agreed with the Designated Rating
                    Agencies.

          "NOTE DOWNGRADE" means any actual or proposed withdrawal or downgrade
          of the rating assigned to any Class of Notes by a Designated Rating
          Agency which results or would result in any rating assigned to that
          Class of Notes being less than that specified in clause 4.2(f) of the
          Series Notice.

--------------------------------------------------------------------------------
                                                                         Page 33

<PAGE>

          "REPLACEMENT CURRENCY SWAP PROVIDER" means, at any time, a person that
          has agreed to replace Party A at that time and has a credit rating not
          less than the Required Rating.

          "REQUIRED RATING" means a credit rating of not less than:

          (a)  A-1+ (short term) by S&P;

          (b)  A2 (long term) by Moody's; and

          (c)  P-1 (short term) by Moody's.

          "SERIES NOTICE" means the Series Notice dated on or about the date of
          this Agreement in relation to the Trust.

          "SWAP COLLATERAL ACCOUNT" means a US$ account in the name of Party B
          with an Approved Bank.

          "TRUST" means the Interstar Millennium Series 2003-3G Trust.

          "VALUATION AGENT" means Party A.

          "VALUATION DATE" means every day; provided that if such day is not a
          Local Business Day then the Valuation Date shall be the following day
          that is a Local Business Day.

          "VALUATION TIME" means 5.00 p.m. New York time on the Local Business
          Day immediately preceding the Valuation Date or date of calculation
          (as applicable).

          "VB" means the value calculated by multiplying the outstanding
          notional of the Transaction at the time of the calculation by the
          relevant percentage calculated from the greater of:

          (a) 3% in relation to MTM calculated under paragraph (1) and (2) of
          the definition of MTM, otherwise 4.6% or such lower amount as agreed
          with Moody's; and

          (b) the following table (for the purposes of interpreting the table,
          "Counterparty rating" is the credit rating assigned to Party A by S&P
          and "Maturities" is the period from and including the date of
          calculation to but excluding the scheduled maturity of the last
          expiring Transaction outstanding under this Agreement):

                              VOLATILITY BUFFER (%)

<TABLE>
<CAPTION>
          ---------------------- ---------------- ------------------ --------------------
          COUNTERPARTY RATING    MATURITIES UP    MATURITIES UP TO   MATURITIES MORE
                                 TO 5 YEARS       10 YEARS           THAN 10 YEARS
          ---------------------- ---------------- ------------------ --------------------
          <S>                    <C>              <C>                <C>
          A+                     1.05             1.75               3.0
          ---------------------- ---------------- ------------------ --------------------
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 34
<PAGE>

<TABLE>
          A                      1.35             2.45               4.5
          ---------------------- ---------------- ------------------ --------------------
          <S>                    <C>              <C>                <C>
          A-1*                   1.5              3.15               6.0
          ---------------------- ---------------- ------------------ --------------------
</TABLE>

          *    The A-1 rating will be taken to be the counterparty's short term
               rating.

          (ii) The definition of Tax is replaced with:

               "TAX" has the meaning given in the Master Trust Deed.

          (iii) Insert the following additional paragraph at the end of Section
               14:

               "Words and expressions which are defined or incorporated by
               reference in the Series Notice have the same meanings when used
               in this Agreement unless the context otherwise requires or unless
               otherwise defined in this Agreement."

(K)  MASTER TRUST DEED, SERIES NOTICE AND SECURITY TRUST DEED: The parties
     acknowledge and agree and for the purposes of the Master Trust Deed, the
     Series Notice and the Security Trust Deed:

     (a)  all Transactions under this Agreement are "Hedge Agreements"; and

     (b)  Party A is a "Support Facility Provider".

(l)  ISDA DEFINITIONS: This Agreement, each Confirmation and each Transaction
     are subject to the 2000 ISDA Definitions (as published by the International
     Swap & Derivatives Association, Inc.) as amended from time to time (the
     "ISDA DEFINITIONS"), and will be governed in all respects by any provisions
     set forth in the ISDA Definitions. The ISDA Definitions are incorporated by
     reference in, and shall be deemed to be part of, this Agreement and each
     Confirmation.

(m)  INCONSISTENCY: In the event of any inconsistency between any two or more of
     the following documents, they shall take precedence over each other in the
     following descending order:

     (i)  any Confirmation;

     (ii) the Schedule to the Master Agreement;

     (iii) the other provisions of the Master Agreement; and

     (iv) the ISDA Definitions.

(n)  Any reference to a:

     (i)  "Swap Transaction" in the ISDA Definitions is deemed to be a reference
          to a "Transaction" for the purpose of interpreting this Agreement or
          any Confirmation; and

     (ii) "Transaction" in this Agreement or any Confirmation is deemed to be a
          reference to a "Swap Transaction" for the purposes of interpreting the
          ISDA Definitions.

--------------------------------------------------------------------------------
                                                                         Page 35

<PAGE>

(o)  Insert new Sections 15, 16 and 17 as follows:

     "15. LIMITATION OF PARTY B'S LIABILITY

     (a)  Party B enters into this Agreement only in its capacity as trustee of
          the Trust and in no other capacity. A liability incurred by Party B
          acting in its capacity as trustee of the Trust arising under or in
          connection with this Agreement is limited to and can be enforced
          against Party B only to the extent to which it can be satisfied out of
          the assets of the Trust out of which Party B is actually indemnified
          for the liability. This limitation of the Party B's liability applies
          despite any other provision of this Agreement and extends to all
          liabilities and obligations of Party B in any way connected with any
          representation, warranty, conduct, omission, agreement or transaction
          related to this Agreement.

     (b)  The parties other than Party B may not sue Party B in any capacity
          other than as trustee of the Trust or seek the appointment of a
          receiver (except in relation to the assets of the Trust), liquidator,
          administrator or similar person to Party B or prove in any
          liquidation, administration or arrangements of or affecting Party B
          (except in relation to the assets of the Trust).

     (c)  The provisions of this Section 15 do not apply to any obligation or
          liability of Party B to the extent that it is not satisfied because
          under a Transaction Document or by operation of law there is a
          reduction in the extent of Party B's indemnification out of the assets
          of the Trust as a result of the Party B's fraud, negligence or wilful
          default.

     (d)  It is acknowledged that the Relevant Parties are responsible under the
          Transaction Documents for performing a variety of obligations relating
          to the Trust. No act or omission of Party B (including any related
          failure to satisfy its obligations or breach of representation or
          warranty under the Transaction Documents) will be considered fraud,
          negligence or wilful default of Party B for the purpose of paragraph
          (c) of this Section 15 to the extent to which the act or omission was
          caused or contributed to by any failure by the Relevant Parties (other
          than a person whose acts or omissions Party B is liable for in
          accordance with the Transaction Documents) to fulfil its obligations
          relating to the Trust or by any other act or omission of the Relevant
          Parties (other than a person whose acts or omissions Party B is liable
          for in accordance with the Transaction Documents) regardless of
          whether or not that act or omission is purported to be done on behalf
          of Party B.

     (e)  No attorney, agent, receiver or receiver and manager appointed in
          accordance with a Transaction Document has authority to act on behalf
          of Party B in a way which exposes Party B to any personal liability
          and no act or omission of any such person will be

--------------------------------------------------------------------------------
                                                                         Page 36

<PAGE>

          considered fraud, negligence or wilful default of Party B for the
          purpose of paragraph (c) of this Section 15, provided (in the case of
          any person selected and appointed by Party B) that Party B has
          exercised reasonable care in the selection of such persons.

     (f)  In this Section 15, "Relevant Party" means each of the Trust Manager,
          the Servicer, the Calculation Agent, each Paying Agent, the Note
          Trustee and any Support Facility Provider (as those terms are defined
          in the Master Trust Deed and the Series Notice).

     16.  REPLACEMENT CURRENCY SWAP

     (a)  If this Agreement is terminated, Party B must, at the direction of the
          Trust Manager, enter into one or more Currency Swaps which replace the
          Transactions under this Agreement (in a form reasonably satisfactory
          to Party B)(collectively a "REPLACEMENT CURRENCY SWAP") but only on
          the following conditions:

          (i)  the Settlement Amount payable (if any) by Party B to Party A upon
               termination of this Agreement will be paid in full when due in
               accordance with the Series Notice and this Agreement;

          (ii) the Designated Ratings Agencies confirm that the Replacement
               Currency Swap will not cause a Note Downgrade; and

          (iii) the liability of Party B under the Replacement Currency Swap is
               limited to at least the same extent that its liability is limited
               under this Agreement.

     (b)  If the conditions in Section 16(a) are satisfied, Party B must, at the
          direction of the Trust Manager, enter into the Replacement Currency
          Swap and if it does so it must direct the Replacement Currency Swap
          provider to pay any upfront premium to enter into the Replacement
          Currency Swap due to Party B directly to Party A in satisfaction of
          and to the extent of Party B's obligation to pay the Settlement Amount
          to Party A as referred to in Section 16(a) and to the extent that such
          premium is not greater than or equal to the Settlement Amount, the
          balance must be satisfied by Party B as an Expense of the Trust.

     (c)  If the conditions in Section 16(a) are satisfied and Party B has
          entered into the Replacement Currency Swap, Party B must direct Party
          A to pay any Settlement Amount payable by Party A to Party B on
          termination of this Agreement directly to the Replacement Currency
          Swap provider as payment and to the extent of any premium payable by
          Party B to enter into the Replacement Currency Swap, in satisfaction
          of and to the extent of Party A's obligation to pay that part of the
          Settlement Amount to Party B.

--------------------------------------------------------------------------------
                                                                         Page 37

<PAGE>

     17.  NOVATION

          Party A may at any time novate its obligations under this Agreement to
          any of its Affiliates (the "NEW COUNTERPARTY") provided that:

          (a)  the New Counterparty provides a legal opinion to Party B that
               this Agreement, as novated, is valid, binding and enforceable
               against it (subject to equitable doctrines and creditors' rights
               generally); and

          (b)  the Designated Ratings Agencies confirm that the novation to the
               New Counterparty will not cause a Note Downgrade.

          Party B and the Trust Manager will execute all such documents (each in
          a form reasonably satisfactory to Party B) as are reasonably necessary
          to give effect to that novation."

     (p)  TELEPHONE RECORDING: Each party consents to the recording of the
          telephone conversations of trading and marketing personnel in
          connection with this Agreement or any potential Transaction and
          consents to such recording being used as evidence in court
          proceedings.

     (q)  RELATIONSHIP BETWEEN PARTIES: Each party will be deemed to represent
          to each other party on the date on which it enters into a Transaction
          that:

          (i)  NON-RELIANCE. It is acting for its own account (or, in the case
               of Party B, as trustee of the Trust), and it has made its own
               independent decisions to enter into that Transaction and as to
               whether that Transaction is appropriate or proper for it based
               upon its own judgment (in the case of Party B, also on the
               judgment of the Trust Manager) and upon advice from such advisers
               as it has deemed necessary. It is not relying on any
               communication (written or oral) of the other party as investment
               advice or as a recommendation to enter into that Transaction; it
               being understood that information and explanations related to the
               terms and conditions of a Transaction shall not be considered
               investment advice or a recommendation to enter into that
               Transaction. No communication (written or oral) received from the
               other party shall be deemed to be an assurance or guarantee as to
               the expected results of that Transaction.

          (ii) EVALUATION AND UNDERSTANDING. It is capable of evaluating and
               understanding (on its own behalf or through independent
               professional advice), and understands and accepts, the terms,
               conditions and risks of that Transaction. It is also capable of
               assuming, and assumes, the financial and other risks of that
               Transaction.

          (iii) NON-FIDUCIARY. No other party is acting as a fiduciary for it or
               as an advisor to it for the Transaction.

     (r)  Insert new Section 18 as follows:

--------------------------------------------------------------------------------
                                                                         Page 38

<PAGE>

     18.  RATING DOWNGRADE

     (a)  If, at any time, a Downgrade occurs and the downgrade constitutes a
          Minor Downgrade, Party A shall, within 30 days (or such greater period
          as agreed by the relevant Designated Rating Agency), comply with
          Section 18(c)(i).

     (b)  If, at any time, a Downgrade occurs and the downgrade constitutes a
          Major Downgrade, Party A shall:

          (i)  within 30 Business Days (or such greater period as agreed by the
               relevant Designated Rating Agency) comply with Sections 18(c)(ii)
               or (c)(iii); and

          (ii) until such time as a Replacement Currency Swap has been entered
               into in accordance with Section 18(c)(ii) or an Acceptable
               Arrangement has been entered into in accordance with Section
               18(c)(iii), comply or continue to comply with Section 18(c)(i).

     (c)  Where Party A is required to comply with this Section 18(c) it must,
          at its cost:

          (i)  either:

               (A)  within 5 Business Days (or such greater period as agreed by
                    the relevant Designated Rating Agency) deposit into a Swap
                    Collateral Account and maintain in that Swap Collateral
                    Account (whilst the relevant Downgrade subsists) sufficient
                    funds to ensure that the amount standing to the credit of
                    the Swap Collateral Account is not less than the Cash
                    Collateral Amount; or

               (B)  acquire in the name of Party B or transfer to Party B
                    Eligible Investments that mature on or prior to the next
                    Payment Date with an aggregate face amount not less than the
                    Cash Collateral Amount;

          (ii) procure a novation of its rights and obligations under each
               Transaction to a Replacement Currency Swap Provider; or

          (iii) enter, or procure entry, into an Acceptable Arrangement.

     (d)  If, at any time, Party A's obligations under a Transaction are novated
          in accordance with Section 18(c)(ii) or any Acceptable Arrangement is
          entered into in accordance with Section 18(c)(iii) which results in
          Party A being replaced as Currency Swap Provider (the "REPLACED
          CURRENCY SWAP PROVIDER"), the Replaced Currency Swap Provider shall be
          immediately entitled to any Cash

--------------------------------------------------------------------------------
                                                                         Page 39

<PAGE>

          Collateral Amount which it has deposited in a Swap Collateral Account.

     (e)  Where Party B has not established a Swap Collateral Account and Party
          A is required to deposit monies into a Swap Collateral Account, the
          Trust Manager must direct Party B to, and Party B must, establish, as
          soon as practicable, and maintain, in the name of Party B a US$
          account with an Approved Bank, which account shall be, for the
          purposes of this Section 18, the "SWAP COLLATERAL ACCOUNT".

     (f)  Party B may only dispose of any Eligible Investment acquired or
          transferred to it under Section 18(c)(i)(B) or make withdrawals from
          the Swap Collateral Account if directed to do so by the Trust Manager
          and then only for the purpose of:

          (i)  novating the Replaced Currency Swap Provider's obligations under
               each Transaction in accordance with Section 18(c)(ii) or entering
               into any other Acceptable Arrangement in accordance with
               18(c)(iii);

          (ii) refunding to Party A the amount of any reduction in the Cash
               Collateral Amount, from time to time, and provided the Designated
               Rating Agencies have confirmed in writing that such refund will
               not result in a Note Downgrade;

          (iii) withdrawing any amount which has been incorrectly deposited into
               the Swap Collateral Account;

          (iv) paying any bank accounts debit tax or other equivalent Taxes
               payable in respect of the Swap Collateral Account; or

          (v)  funding the amount of any payment due to be made by Party A under
               this Agreement following the failure by Party A to make that
               payment.

          For the purposes of this Section 18 and the Series Notice, a Downgrade
          will be deemed to "SUBSIST" until the earlier of the following dates:

          (i)  the date on which the credit rating of Party A is restored to the
               Required Rating;

          (ii) the date on which a Replacement Currency Swap has been entered
               into in accordance with Section 18(c)(ii); and

          (iii) the date on which an Acceptable Arrangement has been entered
               into in accordance with Section 18(c)(iii).

--------------------------------------------------------------------------------
                                                                         Page 40

<PAGE>

     (g)  Party B, at the direction of the Trust Manager, may only invest any
          amounts standing to the credit of a Swap Collateral Account in
          Eligible Investments that mature on or prior to the next Payment Date.

     (h)  All interest accrued on and other income derived from the acquisition
          or transfer to it of any Eligible Investments under Section
          18(c)(i)(B) or the investment of any amounts credited to a Swap
          Collateral Account will be payable monthly to the party that provided
          the relevant Eligible Investments or Cash Collateral Amount, provided
          that any such interest or income will only be payable to the extent
          that any payment will not reduce the balance of the Swap Collateral
          Account to less than the amount required to be maintained in
          accordance with this Section 18.

This Agreement may be executed in counterparts, each of which will be deemed an
original.

EXECUTED in London and Sydney.

Each attorney executing this Agreement states that he or she has no notice of
revocation or suspension of his or her power of attorney.

--------------------------------------------------------------------------------
                                                                         Page 41

<PAGE>

PARTY A

<TABLE>
<CAPTION>
<S>                                                     <C>
SIGNED on behalf of                                   )
BARCLAYS BANK PLC                                     ) -----------------------------------------
by its attorneys under power of attorney              ) Signature
in the presence of:                                   )

                                                        ----------------------------------------
                                                        Print name

-------------------------------------------------------
Witness
                                                         ----------------------------------------
                                                         Signature

-------------------------------------------------------
Print name
                                                         -----------------------------------------
                                                         Print name

PARTY B

SIGNED on behalf of                                   )
PERPETUAL TRUSTEES VICTORIA LIMITED                   )
by its attorney under power of attorney               )
in the presence of:                                   )

-------------------------------------------------------  ---------------------------------------
Witness                                                  Signature

-------------------------------------------------------  -----------------------------------------
Print name                                               Print name

TRUST MANAGER

SIGNED on behalf of                                   )
INTERSTAR SECURITISATION MANAGEMENT PTY LIMITED       )
by its attorney under power of attorney               )
in the presence of:                                   )

-------------------------------------------------------  ----------------------------------------
Witness                                                  Signature

-------------------------------------------------------  -----------------------------------------
Print name                                               Print name
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 42<PAGE>

                                      LEASE

         LEASE, dated as of February 1, 2003, between 345 W. 37TH CORP., a New
York corporation, having an office at 341-345 West 37th Street, New York, New
York 10018 (the "Landlord"), and G-III LEATHER FASHIONS INC., a New York
corporation, having an office at 512 Seventh Avenue, New York, New York 10018
(the "Tenant").

                                   WITNESSETH:

                                   ARTICLE ONE

                      1. DEMISE OF PREMISES, TERM AND RENT

         1.1. The Landlord does hereby lease and demise to the Tenant, and the
Tenant does hereby hire and take from the Landlord, subject and subordinate to
the Qualified Encumbrances (as hereinafter defined) and upon and subject to the
provisions of this Lease, for the term hereinafter stated, the space
substantially as shown hatched on the diagram attached hereto as Exhibit A and
designated as Suite 500 on the 5th Floor of the building known as 341-345 West
37th Street, New York, New York 10018 (the "Building"), situated upon a plot of
land (the "Land") in the Borough of Manhattan, New York, New York, together with
all fixtures, equipment, improvements, installations and appurtenances which at
the commencement of or during the term of this Lease are thereto attached
(except items not deemed to be included therein and removable by the Tenant as
provided in Article Four hereof) and three (3) parking spaces located on the
Land and adjacent to the Building (the "Parking Spaces"); which space, fixtures,
equipment, improvements, installations, appurtenances and Parking Spaces are
sometimes herein collectively called the "Premises".

         1.2. The term of this Lease shall commence on February 1, 2003 and
shall end on January 31, 2006, or on such earlier date upon which the term may
expire or be terminated pursuant to any of the conditions of limitation or other
provisions of this Lease or pursuant to law.

         1.3. The Premises, other than the Parking Spaces, may be used for the
following, but no other, purposes, namely: warehousing and general office use.
The Parking Spaces may be used only by the Tenant's employees, guests or
invitees for the purpose of parking their motor vehicles while such persons are
working at or visiting the Premises.

         1.4. The rent reserved under this Lease for the term of this Lease
shall consist of fixed rent of (i) One Hundred Eighty Thousand Dollars
($180,000) for the Premises, other than the Parking Spaces, and (ii) Thirty-Six
Thousand Dollars ($36,000) for the Parking Spaces, for an aggregate fixed rent
of Two Hundred Sixteen Thousand Dollars ($216,000), payable in equal monthly
installments in advance on the first day of each and every calendar month of the
term of this Lease, plus (b) the additional rent payable as provided in this
Lease; all to be paid to

<PAGE>

the Landlord, at its office as set forth above, or at such other place or places
as the Landlord shall designate to the Tenant, in lawful money of the United
States of America. If the termination date of the Lease term is other than the
last day of a calendar month, fixed rent for the calendar month in which the
Lease term shall terminate shall be appropriately adjusted on a prorated, per
diem basis.

         1.5. The Tenant shall pay the fixed rent, additional rent and Billboard
Rent (as that term is hereinafter defined in Article Thirty hereof)
(collectively, "Rent") as and when the same shall become due and payable as
provided in this Lease, without demand therefor, and without any setoff or
deduction whatsoever, and keep, observe and perform, and permit no violation of,
each and every provision contained in this Lease on the part of the Tenant to be
kept, observed and performed.

         1.6. In determining the rentable area and, where applicable, the
useable area of the Building or any portion thereof pursuant to any provision of
this Lease, the rentable area or useable area of the Building or the portion, as
the case may be, shall be the rentable area or useable area thereof in square
feet determined in accordance with the Standard Method of Floor Measurement for
Office Buildings approved by The Real Estate Board of New York, Inc., which
became effective on January 1, 1987, assuming a 20% loss factor from rentable to
useable. The parties agree that as of the date hereof the Premises contain 6,600
rentable square feet.

         1.7. The term "Qualified Encumbrances" means (a) matters of record
affecting the Premises, Building or Land on the date of this Lease or hereafter,
(b) the underlying mortgages and underlying leases to which this Lease is
subordinate pursuant to Article Thirteen, (c) any declaration of restrictions or
other document in respect of the transfer of use or development rights, (d) any
declaration or other document which subjects all or any portion of the Land
and/or the Building to a condominium regime, (e) any preservation or similar
easement, declaration or agreement containing covenants, restrictions or
agreements in respect of the maintenance of the Building and/or the Land as a
landmark site with or held by a governmental agency or an entity designated or
accepted by a governmental agency, and (f) any special zoning district rules or
regulations.

                                  ARTICLE TWO

                                  2. OCCUPANCY

         2.1. The Tenant has examined and shall accept the Premises in their
existing condition and state of repair and understands that no work is to be
performed by the Landlord in connection therewith.

         2.2. The Tenant by taking possession of any part of the Premises shall
be conclusively deemed to have agreed that same was in satisfactory condition as
of the date of such possession.

                                       -2-
<PAGE>

                                 ARTICLE THREE

                               3. USE OF PREMISES

         3.1. The Tenant shall not, except with the prior written consent of the
Landlord, use, or suffer or permit the use of, the Premises or any part thereof
for any purpose other than the uses permitted in Article One, provided, that the
portions, if any, of the Premises which are identified as toilets or utility
areas shall be used by the Tenant only for the purposes for which they are
designed and the portions, if any, of the Premises which are identified as
storage areas shall be used only for storage purposes.

         3.2. The Tenant shall not use, or suffer or permit the use of, the
Premises or any part thereof in any manner or for any purpose or do, bring or
keep anything, or suffer or permit anything to be done, brought or kept, therein
(including, without limitation, the installation or operation of any electrical,
electronic or other equipment) which (i) would violate any provision of this
Lease or is unlawful or in contravention of the Certificate of Occupancy for the
Building, or (ii) in the reasonable judgment of the Landlord may in any way
impair or interfere with any of the Building services or the proper and economic
heating, air conditioning, cleaning or other servicing of the Building or the
Premises or impair or interfere with the use of any of the other areas of the
Building by, or occasion discomfort, inconvenience or annoyance to, any other
tenant of the Building or impair the appearance of the Building; nor shall the
Tenant use, or suffer or permit the use of, the Premises or any part thereof in
any manner, or do, or suffer or permit the doing of, anything therein or in
connection with the Tenant's business or advertising which, in the reasonable
judgment of the Landlord, may be prejudicial to the business of the Landlord or
the reputation of the Landlord or the Building or reflect unfavorably on the
Landlord or the Building or confuse or mislead the public as to any connection
or relationship between the Landlord and the Tenant.

         3.3. If any governmental license or permit shall be required for the
proper and lawful conduct of any business or other activity carried on in the
Premises and, if the failure to secure such license or permit would, in any way,
affect the Landlord, the Tenant shall promptly procure and thereafter maintain
such license or permit, submit the same to inspection by the Landlord, and
comply with the terms and conditions thereof.

                                  ARTICLE FOUR

                                  4. FIXTURES

         4.1. All fixtures, equipment, improvements and installations
("Fixtures") attached to, or built into, the Premises at the commencement of or
during the term of this Lease, whether or not installed at the expense of the
Tenant or by the Tenant, shall be and remain part of the Premises and be deemed
the property of the Landlord and shall not be removed by the Tenant except as
otherwise expressly provided in this Lease. All electric, plumbing, heating,
sprinkling, elevator, fixtures and outlets, partitions, railings, gates, doors,
vaults, stairs, paneling, molding, shelving, radiator enclosures, floors, and
ventilating, silencing, air conditioning and cooling equipment shall be deemed
to be included in Fixtures, whether or not attached to or built into the
Premises. Notwithstanding the foregoing, the Tenant shall (i) close up any slab
penetration in

                                      -3-
<PAGE>

the Premises and (ii) remove from the Building all Fixtures furnished and
installed in any part of the Premises (whether or not attached thereto or built
therein) at the sole expense of the Tenant with respect to which no credit or
allowance shall have been granted to the Tenant, as well as any safes, vault
areas, lead-lined rooms, conveyors, pneumatic tubes, mechanical and electrical
rooms and telephone switchrooms and the equipment therein. All such closing and
removal shall be performed not later than the expiration or termination of the
Lease and shall be performed subject to the provisions of this Lease, including,
without limitation, subsection (e) of Article Six. The Tenant shall repair any
damage to the Premises arising from such closing and removal described in the
preceding sentence. The cost of repairing any damage to the Premises or the
Building arising from such closing and removal described in the preceding
sentences shall be paid by the Tenant upon demand. If any Fixture which as
aforesaid may or is required to be removed by the Tenant is not so removed
within the time above specified therefor, then the Landlord may at its election
deem that the same has been abandoned by the Tenant to the Landlord, but no such
election shall relieve the Tenant of its obligation to pay the cost and expense
of removing the same or the cost of repairing damage arising from such removal.
Notwithstanding the foregoing, the Landlord may, by notice to the Tenant,
prohibit the closing of any slab penetration not theretofore closed and the
removal of any or all items the Tenant is required to remove pursuant to this
Section 4.1 but has not theretofore removed.

         4.2. All the perimeter walls of the Premises, any balconies, terraces
or roofs, if any, adjacent to the Premises (including any flagpoles or other
installations on said walls, balconies, terraces or roofs), and any space in
and/or adjacent to the Premises used for shafts, stairways, stacks, pipes,
conduits, ducts, electric or other utilities, sinks, fans or other Building
facilities, and the use thereof, as well as access thereto through the Premises
for the purposes of such use and the operation, improvement, replacement,
addition, repair, maintenance or decoration thereof, are expressly reserved to
the Landlord.

                                  ARTICLE FIVE

                          5. ELECTRIC CURRENT AND WATER

         5.1. The Landlord shall furnish, through the existing transmission
facilities installed by it in the Building, alternating electric current to the
electric closets and panels provided by the Landlord and serving the Premises in
such reasonable quantity as may be required for the Tenant's ordinary use of the
Premises for the purposes herein specified, but such quantity shall not exceed,
in the aggregate, an average of four watts per useable square foot of space in
the Premises. Such alternating electric current shall be measured by an
electronic meter or meters and meter equipment provided by the Landlord at the
Tenant's cost and expense and installed by the Tenant at its cost at such
location or locations as the Tenant shall select with the reasonable approval of
the Landlord. The Tenant shall pay to the Landlord, as billed by the Landlord,
at the end of each billing period of the public utility company then supplying
such alternating electric current to the Building, an amount which shall be the
sum of (i) one hundred percent (100%) of the product obtained by multiplying the
Tenant's actual number of kilowatt hours and kilowatts of electric current
consumed by the Tenant in such billing period by the amount charged the Landlord
for use of the same by said public utility in such billing period plus (ii) any
taxes applicable to the amount determined pursuant to the foregoing clause (i).

                                      -4-
<PAGE>

         5.2. The Landlord may, at its option, upon not less than thirty (30)
days' prior written notice to the Tenant, discontinue the furnishing of electric
current to the Premises or any part thereof and, in such event, the Tenant shall
contract for the supplying of such electric current thereto with the public
service company supplying electric current to the neighborhood, and the Landlord
shall permit its risers, conduits and feeders serving the Premises, to the
extent available, suitable and safely capable, to be used for the purpose of
supplying such electric current.

         5.3. The Tenant shall purchase and install all lamps, starters and
ballasts (including replacements thereof) used in the lighting fixtures in the
Premises.

         5.4. Water will be furnished by the Landlord for normal use in lavatory
and toilet facilities, if any, in the Premises. Where any water is otherwise
furnished or any steam is furnished by the Landlord, the Tenant shall pay (i)
the cost of supplying, installing and maintaining a meter to measure the water
or steam so furnished, (ii) the reasonable charges of the Landlord for the water
or steam so furnished and, in the case of water, for any required pumping and/or
heating thereof, and (iii) any taxes, sewer rent or other charges which may be
imposed by any government or agency thereof based upon the quantity of water or
steam so furnished or the charge therefor.

         5.5. The Landlord shall in no way be liable for any failure, inadequacy
or defect in the character or supply of electric current, water or steam
furnished to the Premises except for actual damage suffered by the Tenant by
reason of any such failure, inadequacy or defect caused solely by the gross
negligence or willful misconduct of the Landlord.

                                  ARTICLE SIX

                              6. VARIOUS COVENANTS

         6.1. The Tenant shall:

         (a) take good care of the Premises, keep the Premises clean, and pay
the cost of making good any injury, damage or breakage (including, without
limitation, the cost of removing stains from floors and walls) done by the
Tenant, any other occupant of the Premises (other than the Landlord), any
affiliate thereof, or any of their respective employees, officers, directors,
partners, contractors, agents, licensees or invitees (each, a "Tenant Party"),
other than any damage with respect to which the Tenant is released from
liability pursuant to Section 9.3.;

         (b) observe and comply with the rules and regulations annexed to, and
made a part of, this Lease and such other and further rules and regulations as
the Landlord hereafter at any time may make and communicate to the Tenant and
which, in the judgment of the Landlord, shall be necessary or desirable for the
reputation, safety, care or appearance of the Building, or the preservation of
good order therein, or the operation or maintenance of the Building, or the
equipment thereof, or the comfort of tenants or others in the Building;
provided, however, that in the case of any conflict between the provisions of
this Lease and any such rule or regulation, the provisions of this Lease shall
control;

                                      -5-
<PAGE>

         (c) permit the Landlord, any landlord under any of the underlying
leases, any mortgagee under any of the underlying mortgages and any other party
designated by the Landlord, and their respective representatives, to enter the
Premises at such hours as shall not unreasonably interfere with the Tenant's
business but without notice, for the purposes of inspection and permit them or
any of their agents or contractors to enter at any time without notice in case
of emergency and otherwise at any time with reasonable notice for the purpose of
complying with any and all laws, ordinances, rules, orders and regulations of
all governmental and quasi-governmental authorities and of all insurance bodies,
at any time duly issued and in force (collectively, "Requirements") applicable
to the Land, the Building or the Premises, or any part thereof, or exercising
any right reserved to the Landlord under Article Eight or elsewhere by this
Lease (it being understood that the parties specified in this subsection are
third-party beneficiaries of the covenants specified in this subsection in the
event of the Landlord's breach of any obligation it may have to any such party
to exercise a right of access on such party's behalf);

         (d) make no claim against the Landlord or any landlord under any of the
underlying leases for any injury or damage to the Tenant or to any other person
or for any damage to, or loss (by theft or otherwise) of, or loss of use of, any
property of the Tenant or of any other person, irrespective of the cause of such
injury, damage or loss, unless caused solely by the gross negligence or willful
misconduct of the Landlord, its agents, servants or employees, in the operation
or maintenance of the Premises or the Building, it being understood that no
property other than such as might normally be brought upon or kept in the
Premises as an incident to the reasonable use of the Premises for the purposes
specified in this Lease will be brought upon or kept in the Premises;

         (e) make no alteration, change, addition, improvement, repair or
replacement (an "Alteration") in, to, or about the Premises, and do no work in
such connection, without in each case the prior review and written consent of
the Landlord, and then only by workmen and contractors acceptable to the
Landlord, and upon terms and conditions and at times, consented to by the
Landlord and in accordance with the rules, regulations and guidelines of the
Landlord pertaining to the performance of such Alterations, and make no contract
for nor employ any labor in connection with the maintenance, cleaning or other
servicing of the Premises (a "Tenant Service") without like consent, which
consents, to the extent granting same shall not impose any additional burden on
the Landlord, but only in the case of nonstructural Alterations, shall not be
unreasonably withheld; in addition, the Tenant shall:

                  (i) notwithstanding anything in this Lease to the contrary,
make all changes (once reviewed and consented to by the Landlord), whether or
not structural and whether or not in the Premises, required by any Requirement
as a result of any Alteration or Tenant Service;

                  (ii) pay as and when the same become due and payable all
charges incurred by it in connection with any Alteration (it being understood
that any such consent may be conditioned upon the Landlord being furnished with
such security as it shall reasonably determine to be adequate to insure such
payment) including, but not limited to, the Landlord's reasonable charges for
making such reviews and inspections as it may deem

                                      -6-
<PAGE>

necessary or desirable in connection with the consideration of the granting of,
and compliance with, any such consent;

                  (iii) if any notice or claim of any lien be given or filed by
or against the Building or the Land for any work, labor or services performed,
or for any materials, products or equipment used, furnished or manufactured for
use, therein or thereon or in connection with the performance of any Alteration
or Tenant Service, promptly, but in all events within thirty (30) days,
discharge or remove the same by payment, bonding or otherwise;

                  (iv) notwithstanding any such review and consent, not permit
the use of any contractors, workmen, labor, material or equipment in the
performance of any Alteration or Tenant Service if the use thereof, in the
Landlord's judgment, will disturb harmony with any trade engaged in performing
any other work, labor or service in or about the Building or contribute to any
labor dispute;

                  (v) permit no such work to be undertaken in connection with
any Alteration or Tenant Service unless insurance protecting the Tenant and each
of the Tenant's consultants, contractors and subcontractors, and the Indemnitees
(as hereinafter defined), against liability for worker's compensation and for
bodily injuries and death, as well as for property damage arising out of or in
connection with the performance and completion of such Alteration, shall be
procured and maintained in full force and effect throughout the prosecution
thereof, at the sole cost and expense of the Tenant and/or its consultants,
contractors and subcontractors; all such insurance to be commercially reasonable
as to form, amounts and insurers and reasonably acceptable to the Landlord, and
the Tenant will furnish to the Landlord certificates of such insurance prior to
the commencement of such work; and

                  (vi) deliver, within thirty (30) days after completion of the
Alteration, record drawings and specifications of the Premises reflecting the
Alteration in form and substance reasonably acceptable to the Landlord;

         (f) not violate, or permit the violation of, any condition imposed by
the standard fire insurance policy issued for office buildings in the Borough of
Manhattan, New York, New York, and not do, suffer or permit anything to be done,
or keep, suffer or permit anything to be kept, in the Premises, which would
increase the fire or other casualty insurance rate on the Building or property
therein, or which would result in insurance companies of good standing refusing
to insure the Building or any such property in amounts and against risks as
reasonably determined by the Landlord;

         (g) permit the Landlord to show the Premises at reasonable times during
Business Hours (as hereinafter defined) to any lessee, or any prospective
purchaser, lessee, mortgagee or assignee of any mortgage or underlying lease, of
the Building and/or the Land or of the Landlord's interest therein, and their
representatives, and during the 12 months preceding the expiration of this Lease
with respect to any part of the Premises, similarly show such part to any person
contemplating the leasing of all or a portion of the same;

         (h) at the expiration or any earlier termination of this Lease with
respect to any part of the Premises, terminate its occupancy of, and quit and
surrender to the

                                      -7-
<PAGE>

Landlord, such part of the Premises broom-clean and in as good condition as it
was at the commencement of such term, except for (1) ordinary wear and tear, and
(2) loss or damage by fire or other casualty which shall not have been
occasioned by the fault of any Tenant Party or with respect to which the Tenant
is released from liability pursuant to Section 9.3.;

         (i) at any time and from time to time upon not less than ten (10) days'
prior notice by the Landlord, execute, acknowledge and deliver to the Landlord a
statement of the Tenant (or if the Tenant is a corporation or a partnership, an
appropriate officer or partner, as the case may be, of the Tenant) certifying
that this Lease is unmodified and in full force and effect (or if there have
been modifications, that the same is in full force and effect as modified and
stating the modifications), and the dates to which the Rent has been paid in
advance, if any, stating whether or not to the best knowledge of the signer of
such certificate the Landlord is in default in the keeping, observance or
performance of any provision contained in this Lease and, if so, specifying each
such default, and such other information as Landlord may reasonably request, it
being intended that any such statement may be relied upon by any lessee or
mortgagee, or any prospective purchaser, lessee or mortgagee or any assignee of
any underlying mortgage (as defined in Article Thirteen hereof);

         (j) indemnify, and save harmless, the Landlord, and its agents and
partners and its and their respective contractors, licensees, invitees,
servants, officers, directors, agents and employees, any mortgagee under any
underlying mortgage and any landlord under any of the underlying leases (the
"Indemnitees") from and against all liability (statutory or otherwise), claims,
suits, demands, damages, judgments, costs, interest and expenses (including
reasonable counsel fees and disbursements incurred in the defense thereof) to
which any Indemnitee may (except insofar as it arises solely out of the gross
negligence or willful misconduct of any such Indemnitee in the operation and
maintenance of the Building) be subject or suffer whether by reason of, or by
reason of any claim for, any injury to, or death of, any person or persons or
damage to property (including any loss of use thereof) or otherwise arising from
or in connection with the use of, or from any work or thing whatsoever done in,
any part of the Premises during the term of this Lease or during the period of
time, if any, prior to the commencement of such term that the Tenant may have
been given access to such part for the purpose of doing work or otherwise, or as
a result of any Tenant Party performing any such work or otherwise that subjects
any Indemnitee to any Requirement to which such Indemnitee would not otherwise
be subject, or arising from any condition of the Premises due to or resulting
from any default by the Tenant in the keeping, observance or performance of any
provision contained in this Lease or from any act or negligence of any Tenant
Party; and

         (k) maintain, at all times during the term of this Lease and during any
other times the Tenant is granted access to the Premises, a policy or policies
of commercial general liability insurance (including, without limitation,
insurance of the Tenant's contractual liability under this Lease) written on an
occurrence basis with the premiums fully paid on or before the due date, issued
by a reputable insurance company licensed to do business in the State of New
York, having a minimum rating A- by A.M. Best & Company or such other financial
rating as the Landlord may at any time consider appropriate, and reasonably
acceptable to the Landlord. Such insurance shall afford minimum limits as the
Landlord may reasonably designate from time to time, but in no event less than
$2,000,000 per occurrence with a $4,000,000 aggregate in respect of injury or
death to any number of persons and not less than

                                      -8-
<PAGE>

$1,000,000 for damage to or loss of use of property in any one occurrence. Each
such policy shall provide that it cannot be cancelled except upon 30 days' prior
notice to the Landlord and shall name the Indemnitees and such other designees
as the Landlord may from time to time designate as additional insureds
thereunder. The Tenant shall furnish original certificates of such insurance to
the Landlord prior to the term commencement date (or any date on which the
Tenant is granted earlier access) and thereafter not less than 30 days prior to
the expiration of each such policy and any renewals or replacements thereof.

                                  ARTICLE SEVEN

                  7. ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.

         7.1. The Tenant covenants, for the Tenant and its successors, assigns
and legal representatives, that neither this Lease nor the term and estate
hereby granted, nor any part hereof or thereof, will be assigned, mortgaged,
pledged, encumbered or otherwise transferred (it being agreed that (y) issuance
by the Tenant of stock and/or the transfer of already-issued stock/partnership
interest, in one or more transactions so as to transfer control or transfer 50%
or more of an interest in the Tenant, other than through over-the-counter or
national securities exchange transactions, or (z) sale or transfer of 25% or
more of the assets of the Tenant in one or more transactions, other than in the
ordinary course of business, shall, in either event, be deemed an assignment of
this Lease), and that neither the Premises, nor any part thereof, will be
encumbered in any manner by reason of any act or omission on the part of the
Tenant, or will be used or occupied, or permitted to be used or occupied, or
utilized for desk space, for mailing privileges or as a concession, by anyone
other than the Tenant, or will be sublet, or offered or advertised for
subletting; provided, however, that, if the Tenant is a corporation, the
assignment or transfer of this Lease, and the term and estate hereby granted, to
any corporation into which the Tenant is merged or with which the Tenant is
consolidated (such corporation being hereinafter in this Article called the
"Assignee") without the prior consent of the Landlord shall not be deemed to be
prohibited hereby if, and upon the express conditions that, (i) the primary
purpose for such merger or consolidation is other than the transfer of this
Lease, (ii) the surviving entity has a net worth at least equal to that of the
Tenant's on the date hereof or the date of merger or consolidation, whichever is
greater, and (iii) at least thirty (30) days prior to the merger or
consolidation, the Assignee shall have executed and delivered to the Landlord an
agreement in form and substance satisfactory to the Landlord whereby the
Assignee shall agree to be personally bound by and upon all the provisions set
forth in this Lease on the part of the Tenant to be kept, observed or performed,
and whereby the Assignee shall expressly agree that the provisions of this
Article shall, notwithstanding such assignment or transfer, continue to be
binding upon it with respect to all future assignments and transfers.

                                 ARTICLE EIGHT

                     8. CHANGES OR ALTERATIONS BY LANDLORD

         8.1. The Landlord reserves the right to make such changes, alterations,
additions, improvements, repairs or replacements in or to the Building
(including the Premises) and the fixtures and equipment thereof, as well as in
or to the street entrances, halls, passages, elevators, and stairways and other
parts of the Building, and to erect, maintain and use pipes,

                                      -9-
<PAGE>

ducts and conduits in and through the Premises, all as it may reasonably deem
necessary or desirable; provided, that the exercise of such rights shall not
result in an unreasonable obstruction of the means of access to the Premises or
unreasonable interference with the use of the Premises. Nothing in this Section
or in Article Six shall be deemed to relieve the Tenant of any duty, obligation
or liability to make any repair, replacement or improvement or comply with any
Requirement.

                                  ARTICLE NINE

                            9. DAMAGE BY FIRE, ETC.

         9.1. If any part of the Premises shall be damaged by fire or other
perils, the Tenant shall give prompt notice thereof to the Landlord and the
Landlord shall proceed with reasonable diligence, subject to adjustment and
collection of any insurance proceeds and the provisions of any Qualified
Encumbrance, to repair such damage, and, if any part of the Premises shall be
rendered untenantable by reason of such damage (including untenantability due to
lack of access thereto), the annual fixed rent payable under this Lease, to the
extent that such fixed rent relates to such part of the Premises, shall be
abated for the period from the date of such damage to the date when such part of
the Premises shall have been made tenantable or to such earlier date upon which
either such part of the Premises would have been tenantable but for the act or
omission of a Tenant Party, unless (a) the Landlord shall make available to the
Tenant, during the period of such repair, other space in the Building reasonably
suitable for the temporary carrying on of the Tenant's business, or (b) such
fire or other damage shall have resulted from the negligence of any Tenant
Party. The Landlord shall not be liable for any inconvenience or annoyance to
the Tenant or injury to the business of the Tenant resulting in any way from
such damage or the repair thereof. The Tenant understands that the Landlord will
not carry insurance of any kind on (w) the Tenant's goods, furniture or
furnishings, (x) on any Fixtures removable by the Tenant as provided in this
Lease, (y) on Tenant improvements or betterments or (z) on any property in the
care, custody and control of the Tenant, and that the Landlord shall not be
obligated to repair any damage thereto or replace the same.

         9.2. If substantial alteration or reconstruction of the Building shall,
in the opinion of the Landlord, be required as a result of damage by fire or
other perils (whether or not the Premises shall have been damaged by such fire
or other casualty), then this Lease and the term and estate hereby granted may
be terminated by the Landlord by a notice, given within sixty (60) days of such
damage specifying a date, not less than thirty (30) days after the giving of
such notice, for such termination. In addition, if a substantial part of the
Premises is rendered untenantable as a result of such damage by fire or other
peril and it is determined by the Landlord that such part of the Premises cannot
be made tenantable within a period of nine (9) months after the occurrence of
such fire or other peril, then this Lease and the term and estate hereby granted
may be terminated by the Landlord or the Tenant by a notice specifying a date,
not less than thirty (30) days after the giving of such notice for such
termination, which notice must be given within sixty (60) days of such damage.
In the event of the giving of notice of termination, this Lease and the term and
estate hereby granted shall expire as of the date specified in such notice with
the same effect as if such date were the date initially specified in this Lease
as the expiration date, and the fixed rent payable under this Lease shall be
apportioned as of such date of termination, subject to abatement, if any, as and
to the extent above provided.

                                      -10-
<PAGE>

         9.3. Nothing in this Lease shall relieve the Tenant from any liability
to the Landlord or to its insurers in connection with any damage to the Premises
or the Building by fire or other peril if the Tenant shall be legally liable in
such respect, except that the Landlord and the Tenant hereby release each other
with respect to any liability which the released party might otherwise have to
the releasing party for any damage to the Building or the Premises or the
contents thereof by fire or other peril occurring during the term of this Lease
to the extent of the proceeds received under a policy or policies of insurance
permitting such release. Each party will use best efforts to cause its property
and/or other applicable insurance policy to include a provision permitting such
a release of liability; provided, that if such a provision is obtainable from
such insurer only at an additional expense, the insured party shall notify the
other party and, unless the other party pays such additional expense within ten
(10) days thereafter, the insured party shall thereafter be free of its waiver
of subrogation so long as an additional cost is required under the policy in
question.

         9.4. This Lease shall be considered an express agreement governing any
case of damage to or destruction of, or any part of, the Building or the
Premises by fire or other peril, and Section 227 of the Real Property Law of the
State of New York providing for such a contingency in the absence of express
agreement, and any other law of like import now or hereafter in force, shall
have no application in such case.

                                  ARTICLE TEN

                                10. CONDEMNATION

         10.1. If all of the Premises shall be lawfully condemned or taken in
any manner for any public or quasi-public use, this Lease and the term and
estate hereby granted shall forthwith cease and terminate as of the date of
vesting of title in such condemnation or taking. If only a part of the Premises
shall be so condemned or taken, then the term and estate hereby granted with
respect to such part of the Premises shall forthwith cease and terminate as of
the date of vesting of title in such condemnation or taking and the annual fixed
rent payable under this Lease, to the extent that such fixed rent relates to
such part of the Premises, shall be abated for the period from the date of such
vesting of title to the date specified in this Lease for the expiration of the
full term of this Lease with respect to such part of the Premises. If only a
part of the Building shall be so condemned or taken, then (a) if substantial
alteration or reconstruction of the Building or the Premises shall, in the
opinion of the Landlord, be necessary or desirable as a result of such
condemnation or taking, this Lease and the term and estate hereby granted may be
terminated by the Landlord within sixty (60) days following the date on which
the Landlord shall have received notice of such vesting of title, by a notice to
the Tenant specifying a date, not less than thirty (30) days after the
Landlord's notice, for such termination, or (b) if such condemnation or taking
shall be of a substantial part of the Premises or of a substantial part of the
means of access thereto, this Lease and the term and estate hereby granted may
be terminated by the Tenant, within sixty (60) days following the date upon
which the Tenant shall have received notice of such vesting of title, by a
notice to the Landlord specifying a date, not less than thirty (30) days after
the Tenant's notice, for such termination, or (c) if neither the Landlord nor
the Tenant elects to terminate this Lease, this Lease shall not be affected by
such condemnation or taking, except that this Lease and the term and estate
hereby granted with respect to the part of the Premises so condemned or taken
shall expire on the date of the vesting

                                      -11-
<PAGE>

of title to such part and except that the fixed rent payable under this Lease
shall be abated to the extent, if any, hereinabove provided in this Article. If
only a part of the Premises shall be so condemned or taken and this Lease and
the term and estate hereby granted with respect to the remaining portion of the
Premises are not terminated, the Landlord will proceed with reasonable
diligence, subject to the provisions of any Qualified Encumbrance and without
requiring the Landlord to expend more than it collects as an award therefor, to
restore the remaining portion of the Premises as nearly as practicable to the
same condition as it was in prior to such condemnation or taking.

         10.2. The termination of this Lease and the term and estate hereby
granted in any of the cases specified in this Article shall be with the same
effect as if the date of such termination were the date originally specified for
the expiration of the full term of this Lease, and the fixed rent payable under
this Lease shall be apportioned as of such date of termination.

         10.3. If there is any condemnation or taking of all or a part of the
Building, the Landlord shall be entitled to receive the entire award in the
condemnation proceeding, including any award made for the value of the estate
vested by this Lease in the Tenant, and the Tenant hereby expressly assigns to
the Landlord any and all right, title and interest of the Tenant now or
hereafter arising in or to any such award or any part thereof, and the Tenant
shall be entitled to receive no part of such award; provided, that the Tenant
shall not be precluded from intervening for the Tenant's own interest in any
such condemnation proceeding to claim or receive from the condemning authority
any compensation to which the Tenant may otherwise lawfully be entitled in such
case in respect of property removable by the Tenant under Article Four or for
moving expenses, but only to the extent such compensation does not reduce the
award otherwise payable to the Landlord.

         10.4. If the whole or any part of the Premises, or of the Tenant's
leasehold estate, shall be taken in condemnation proceedings or by any right of
eminent domain for temporary use or occupancy, the foregoing provisions of this
Article Ten shall not apply and the Tenant shall continue to pay, in the manner
and at the times herein specified, the full amount of the rent and other charges
payable by the Tenant under this Lease, and, except only to the extent that the
Tenant may be prevented from so doing pursuant to the terms of the order of the
condemning authority, the Tenant shall perform and observe all of the other
provisions of this Lease upon the part of the Tenant to be performed and
observed, as though such taking had not occurred. In the event of any taking
referred to in this Section 10.4., the Landlord shall be entitled to receive any
portion of the condemnation proceeds paid as compensation for the cost of
restoration of the Building and the Tenant shall be entitled to receive the
balance of the condemnation proceeds paid for such taking, whether paid by way
of damages, rent or otherwise, unless such period of temporary use or occupancy
shall extend beyond the expiration or termination of this Lease, in which case
the balance of the condemnation proceeds shall be apportioned between the
Landlord and the Tenant as of the date of the expiration or termination of this
Lease. The Landlord shall, upon the expiration of any such period of temporary
use or occupancy, restore the Building, as nearly as may be reasonably possible
within the balance of the term of the Lease, to the condition in which the same
was immediately prior to such taking, subject to the provisions of any Qualified
Encumbrance and without requiring the Landlord to expend more than it collects
as an award therefor.

                                      -12-
<PAGE>

                                 ARTICLE ELEVEN

                            11. COMPLIANCE WITH LAWS

         11.1. The Tenant shall comply with all Requirements applicable to the
Premises or any part thereof, to the Tenant's use thereof or to the Tenant's
observance of any provision of this Lease, except that the Tenant shall not be
under any obligation to comply with any Requirement requiring any structural
alteration of or in connection with the Premises solely by reason of the use
thereof for any of the purposes permitted in Article One and not by reason of
(i) a condition which has been created by, or at the instance of, any Tenant
Party, (ii) a breach by any Tenant Party of any provision of this Lease or (iii)
a Requirement having as a primary purpose the benefit of disabled persons. Where
any structural alteration of or in connection with the Premises is required by
any such Requirement, and, by reason of the express exception specified above,
the Tenant is not under any obligation to make such alteration, then the
Landlord shall have the option of making such alteration or of terminating this
Lease and the term and estate hereby granted by giving to the Tenant not less
than thirty (30) days' prior notice of such termination; provided, that, if
within fifteen (15) days after the giving of notice of termination, the Tenant
shall request the Landlord to make such alteration at the expense of the Tenant,
then such notice of termination shall be ineffective; the Landlord shall proceed
with reasonable diligence to make such alteration and the Tenant shall pay to
the Landlord all costs and expenses incurred by the Landlord in connection
therewith and shall maintain on deposit with the Landlord such security for the
payment of such costs and expenses as the Landlord shall from time to time
request. For purposes of this Article, providing and installing of sprinklers
shall be deemed to be a non-structural alteration.

         11.2. If a notice of termination shall be given by the Landlord under
this Article and such notice shall not become ineffective as above provided,
this Lease and the term and estate hereby granted shall terminate on the date
specified in such notice with the same effect as if such date were the date
originally specified for the expiration of this Lease, and the fixed rent
payable under this Lease shall be apportioned as of such date of termination.

                                 ARTICLE TWELVE

                  12. ACCIDENTS TO SANITARY AND OTHER SYSTEMS

         12.1. The Tenant shall give to the Landlord prompt notice of any damage
to, or defective condition in, any part or appurtenance of the Building's
sanitary, electrical, heating, air conditioning, ventilating or other systems
serving, located in, or passing through, the Premises. Any such damage or
defective condition shall be remedied by the Landlord with reasonable diligence
except to the extent Tenant is specifically required to remedy same under the
terms of this Lease, but if such damage or defective condition (other than any
damage with respect to which the Tenant is relieved from liability pursuant to
Section 9.3.) was caused by, or by the use by, any Tenant Party or is with
respect to any Fixture, installed by or at the request of Tenant or in
connection with the initial build-out of the Premises, the cost of the remedy
thereof shall be paid by the Tenant upon demand. The Tenant shall not be
entitled to claim any damages against the Landlord arising from any such damage
or defective condition unless the same shall have been caused solely by the
gross negligence or willful misconduct of the Landlord in the

                                      -13-
<PAGE>

operation or maintenance of the Premises or the Building and the same shall not
have been remedied by the Landlord with reasonable diligence after notice from
the Tenant; nor shall the Tenant be entitled to claim any damages against any
other party (including, without limitation, any third party vendor or other
supplier of services to the Landlord) arising from any such damage or defective
condition unless the same shall have been caused solely by the gross negligence
or willful misconduct of such party in the operation or maintenance of the
Premises or the Building and the same shall not have been remedied by such party
with reasonable diligence after notice thereof; nor shall the Tenant be entitled
to claim any eviction by reason of any such damage or defective condition unless
the same shall have been caused solely by the gross negligence or willful
misconduct of the Landlord in the operation or maintenance of the Premises or
the Building and shall not have been made tenantable by the Landlord within a
reasonable time after notice from the Tenant.

                                ARTICLE THIRTEEN

                               13. SUBORDINATION

         13.1. This Lease and the term and estate hereby granted are and shall
be subject and subordinate to the lien of each mortgage which may now or at any
time hereafter affect the Premises, the Building and/or the Land, or the
Landlord's interest therein (collectively, the "underlying mortgages"). This
Lease shall also be subject and subordinate to any future ground or net lease of
the Land and/or the Building. All of said leases as so modified, supplemented,
extended and renewed are herein collectively called the "underlying leases". The
foregoing provisions for the subordination of this Lease and the term and the
estate hereby granted shall be self-operative and no further instrument shall be
required to effect any such subordination; but the Tenant shall, from time to
time, upon request by the Landlord, execute and deliver any and all instruments
that may be necessary or proper to effect such subordination or to confirm or
evidence the same, and in the event that the Tenant shall fail to execute and
deliver any such instrument, the Landlord, in addition to any other remedies,
may, as the agent or attorney-in-fact of the Tenant, execute and deliver the
same, and the Tenant hereby irrevocably constitutes and appoints the Landlord
the Tenant's agent and attorney-in-fact, coupled with an interest, for such
purpose. If the Landlord's interest in the Building or the Land shall be sold or
conveyed to any person, firm or corporation upon the exercise of any remedy
provided for in any underlying mortgage or by law or equity, or if the
Landlord's interest in this Lease is assigned or conveyed to the landlord under
any ground lease as a result of a default by the tenant under the ground lease
and a resulting termination thereof, such person, firm or corporation succeeding
to the Landlord's interest in the Building or Land or this Lease and each
person, firm or corporation thereafter succeeding to its interest in the
Building or the Land or this Lease (i) shall not be liable for any act or
omission of the Landlord under this Lease occurring prior to such sale or
conveyance, (ii) shall not be subject to any offset, defense or counterclaim
accruing prior to such sale or conveyance, (iii) shall not be bound by any
payment prior to such sale or conveyance of Rent for more than one month in
advance (except prepayments in the nature of security for the performance by the
Tenant of its obligations hereunder), (iv) shall not be bound by any amendment
or modification of this Lease made (y) after notice to the Tenant of the
execution of the underlying mortgage or underlying lease in question and (z)
without the consent of such mortgagee or lessor (or their nominees, successors
or assigns), where required, (v) shall not be bound by any covenant to perform
(including, without limitation, any covenant to complete) any

                                      -14-
<PAGE>

renovation or construction in connection with the Premises or the Building or to
pay any sums to the Tenant in connection therewith, in either case arising or
accruing prior to the date of such sale or conveyance of the Landlord's
interest; and (vi) shall be liable for the performance of the other obligations
of the Landlord under this Lease only during the period such successor landlord
shall hold such interest.

         13.2. If this Lease and the term and estate hereby granted are subject
and subordinate to any underlying lease, then the Tenant hereby agrees (a) that
it will attorn to the lessor under said underlying lease effective as of the
expiration or earlier termination of the term of said underlying lease and will
recognize said lessor as the Landlord under this Lease, and (b) that,
notwithstanding such expiration or earlier termination of the term of said
underlying lease, this Lease shall continue for the balance of the term of this
Lease in accordance with its provisions.

                                ARTICLE FOURTEEN

                                   14. NOTICES

         14.1. Any notice, consent, approval, request, communication, bill,
demand or statement (collectively, "Notices") under this Lease by either party
to the other party shall be in writing and shall be deemed to have been duly
given when delivered personally or by overnight mail service to such other party
and a receipt has been obtained or on the third day after being mailed in a
postpaid envelope (registered or certified, return receipt requested) addressed
to such other party, which address for the Landlord shall be as above set forth
and for the Tenant shall be the Tenant's address at the Premises, or if the
address of such other party for notices shall have been duly changed as
hereinafter provided, if so mailed to such other party at such changed address.
Either party may at any time change the address for Notices by a Notice stating
the change and setting forth the changed address. If the term "Tenant" as used
in this Lease refers to more than one person, any Notice to any one of such
persons shall be deemed to have been duly given to the Tenant. If and to the
extent requested by the Landlord, the Tenant shall give copies of all Notices to
the Landlord to holders of underlying mortgages and underlying leases of which
the Tenant has notice.

                                ARTICLE FIFTEEN

                          15. CONDITIONS OF LIMITATION

         15.1. This Lease and the term and estate hereby granted are subject to
the limitation that:

         (a) if the Tenant shall default in the payment of any Rent and any such
default shall continue for five (5) days after notice,

         (b) if the Tenant shall default in observing any provision of Article
Three or of subsection (e) or (f) of Section 6.1. and such default shall
continue and shall not be remedied by the Tenant within seventy-two (72) hours
after notice,

                                      -15-
<PAGE>

         (c) if the Tenant shall default in observing any provision of this
Lease (other than a default of the character referred to in subsection (a) or
(b) of this Section), and if such default shall continue and shall not be
remedied by the Tenant within fifteen (15) days after notice or, if such default
cannot for causes beyond the Tenant's control, with due diligence be cured
within said period of fifteen (15) days, if the Tenant (i) shall not, promptly
upon the giving of such notice, give the Landlord notice of the Tenant's
intention to duly institute all steps necessary to remedy such default, (ii)
shall not duly institute and thereafter diligently prosecute to completion all
steps necessary to remedy the same, or (iii) shall not remedy the same within a
reasonable time after the date of the giving of said notice by the Landlord,
which period shall in no event exceed ninety (90) days,

         (d) if any event shall occur or any contingency shall arise whereby
this Lease or the estate hereby granted or the unexpired balance of the full
term of this Lease would, by operation of law or otherwise, devolve upon or pass
to any person, firm or corporation other than the Tenant (except as permitted
under Article Seven), or if the Tenant shall desert or abandon the Premises or
the same shall become vacant (whether or not the keys be surrendered or the rent
is paid), or

         (e) when and to the extent permitted by law, if a petition in
bankruptcy shall be filed by or against the Tenant, or if the Tenant shall make
a general assignment for the benefit of its creditors, or the Tenant shall
receive the benefit of any insolvency or reorganization act, or if a receiver or
trustee is appointed for any portion of the Tenant's property and such
appointment is not vacated within sixty (60) days, or if an execution or
attachment shall be issued under which the Premises shall be taken or occupied
by anyone other than the Tenant,

then in any of said cases the Landlord may give to the Tenant a notice of
intention to end the term of this Lease, and, if such notice is given, this
Lease and the term and estate hereby granted (whether or not the term shall
theretofore have commenced) shall terminate upon the expiration of five (5) days
from the date the notice is deemed given with the same effect as if the last of
said five (5) days were the date originally specified as the expiration of the
full term of this Lease, but the Tenant shall remain liable for damages as
provided in this Lease or pursuant to law. If this Lease shall have been
assigned, the term "Tenant", as used in subsections (a) to (e), inclusive, of
this Section 15.1., shall be deemed to include the assignee and the assignor or
either of them under any such assignment unless the Landlord shall, in
connection with such assignment, release the assignor from any further liability
under this Lease, in which event the term "Tenant", as used in said subsections,
shall not include the assignor so released.

                                ARTICLE SIXTEEN

                            16. RE-ENTRY BY LANDLORD

         16.1. If this Lease shall terminate under Article Fifteen, or if the
Tenant shall default in the payment of any Rent on any date upon which the same
becomes due, and if such default shall continue for five (5) days after the
Landlord shall have given to the Tenant a notice specifying such default, the
Landlord or the Landlord's agents and servants may immediately or at any time
thereafter re-enter the Premises, or any part thereof in the name of the whole,
either

                                      -16-
<PAGE>

by summary dispossess proceedings or by any suitable action or proceeding at law
or by force or otherwise, without being liable to indictment, prosecution or
damages therefor, and may repossess the same, and may remove any persons
therefrom, to the end that the Landlord may have, hold and enjoy the Premises
again as and of its first estate and interest therein. The words "re-enter",
"re-entry", and "re-entering" as used in this Lease are not restricted to their
technical legal meanings.

         16.2. If this Lease shall terminate under the provisions of Article
Fifteen or if the Landlord undertakes any summary dispossess or other proceeding
or action or other measure for the enforcement of its right of re-entry (any
such termination of this Lease or undertaking by the Landlord being a "Default
Termination"), the Tenant shall thereupon pay to the Landlord the Rent up to the
time of such Default Termination, and shall likewise pay to the Landlord all
such damages which, by reason of such Default Termination, shall be payable by
the Tenant as provided in this Lease or pursuant to law. Also in the event of a
Default Termination the Landlord shall be entitled to retain all moneys, if any,
paid by the Tenant to the Landlord, whether as advance rent or as security for
rent, but such moneys shall be credited by the Landlord against any Rent due
from the Tenant at the time of such Default Termination or, at the Landlord's
option, against any damages payable by the Tenant as provided in this Lease or
pursuant to law.

         16.3. In the event of a breach or threatened breach on the part of the
Tenant of any of its obligations under this Lease, the Landlord shall also have
the right of injunction. The specified remedies to which the Landlord may resort
under this Lease are cumulative and are not intended to be exclusive of any
other remedies or means of redress to which the Landlord may lawfully be
entitled at any time, and the Landlord may invoke any remedy allowed at law or
in equity as if specific remedies were not provided for in this Lease.

                               ARTICLE SEVENTEEN

                                  17. DAMAGES

         17.1. If there is a Default Termination of this Lease, the Tenant shall
pay to the Landlord as damages, at the election of the Landlord, either:

         (a) a sum which, at the time of such Default Termination, represents
the then present value (such computation to be made by using the then prevailing
rate of most recently issued bonds or notes issued by the United States Treasury
having a maturity closest to but not exceeding the period commencing with the
day following the date of such Default Termination and ending with the date
originally specified as the expiration date of this Lease (the "Remaining
Period")) of the excess, if any, of (1) the aggregate of the fixed rent and the
additional rent under Article Twenty-four (if any) which, had this Lease not so
terminated, would have been payable under this Lease by the Tenant for the
Remaining Period over (2) the aggregate rental value of the Premises for the
same period, or

         (b) sums equal to the aggregate of the fixed rent and the additional
rent under Article Twenty-four (if any) which would have been payable by the
Tenant had this Lease

                                      -17-
<PAGE>

not terminated by such Default Termination, payable upon the due dates therefor
specified in this Lease following such Default Termination and until the date
originally specified as the expiration of this Lease; provided, that if the
Landlord shall relet all or any part of the Premises for all or any part of the
Remaining Period (the Landlord having no obligation to so relet the Premises),
the Landlord shall credit the Tenant with the net rents received by the Landlord
from such reletting, such net rents to be determined by first deducting from the
gross rents as and when received by the Landlord from such reletting the
expenses incurred by the Landlord in terminating this Lease and re-entering the
Premises and of securing possession thereof, as well as the expenses of
reletting, including altering and preparing the Premises for new tenants,
brokers' commissions, and all other expenses properly chargeable against the
Premises and the rental therefrom in connection with such reletting, it being
understood that any such reletting may be for a period equal to or shorter or
longer than said period; provided, further, that (i) in no event shall the
Tenant be entitled to receive any excess of such net rents over the sums payable
by the Tenant to the Landlord, (ii) in no event shall the Tenant be entitled, in
any suit for the collection of damages pursuant to this subsubsection (b), to a
credit in respect of any net rents from a reletting except to the extent that
such net rents are actually received by the Landlord prior to the commencement
of such suit, and (iii) if the Premises or any part thereof should be relet in
combination with other space, then proper apportionment on a square foot
rentable area basis shall be made of the rent received from such reletting and
of the expenses of reletting.

         17.2. For the purposes of this Article, the amount of additional rent
which would have been payable by the Tenant under Article Twenty-four for each
Tax Year or Operating Year (as those terms are defined in Article Twenty-four)
ending after such Default Termination shall be in an amount as shall be
reasonably determined by the Landlord. Suit or suits for the recovery of any
damages payable by the Tenant, or any installments thereof, may be brought by
the Landlord from time to time at its election, and nothing in this Lease shall
be deemed to require the Landlord to postpone suit until the date when the term
of this Lease would have expired but for such Default Termination.

         17.3. Nothing in this Lease shall be construed as limiting or
precluding the recovery by the Landlord against the Tenant of any sums or
damages to which, in addition to the damages specified above, the Landlord may
lawfully be entitled by reason of any default under this Lease on the part of
the Tenant.

                                ARTICLE EIGHTEEN

                             18. WAIVERS BY TENANT

         18.1. The Tenant, for itself and all other Tenant Parties, and on
behalf of any and all persons, firms, entities and corporations claiming through
or under any Tenant Party, including, without limitation, creditors of all
kinds, does hereby waive and surrender all right and privilege which they or any
of them might have under or by reason of any present or future law to redeem the
Premises or to have a continuance of this Lease for the full term hereby demised
after the Tenant is dispossessed or ejected therefrom by process of law or under
the terms of this Lease or after the expiration or termination of this Lease as
provided in this Lease or pursuant to law. The Tenant also waives (a) the right
of the Tenant to trial by jury in any summary dispossess or other proceeding
that may hereafter be instituted by the Landlord against the

                                      -18-
<PAGE>

Tenant with respect to the Premises or in any action that may be brought to
recover rent, damages or other sums payable under this Lease, and (b) the
provisions of any law relating to notice and/or delay in levy of execution in
case of an eviction or dispossess of a tenant for nonpayment of rent, and of any
other law of like import now or hereafter in effect. If the Landlord commences
any such summary dispossess proceeding, the Tenant will not interpose any
counterclaim of whatever nature or description in such proceeding, other than a
compulsory counterclaim.

                                ARTICLE NINETEEN

                              19. TENANT'S REMOVAL

         19.1. Any personal property which shall remain in any part of the
Premises after the expiration or termination of the term of this Lease with
respect to such part shall be deemed to have been abandoned, and either may be
retained by the Landlord as its property or may be disposed of in such manner as
the Landlord may see fit at the Tenant's cost; provided, that the Tenant will,
upon request of the Landlord, remove from the Building any such personal
property by the later of the expiration or termination of this Lease or thirty
(30) days after the Landlord's request.

         19.2. If during the last month of the term of this Lease with respect
to any part of the Premises, such part of the Premises shall no longer be
occupied by the Tenant in the conduct of its business, the Landlord may, and the
Tenant hereby irrevocably grants to the Landlord a license to, enter such part
of the Premises and make such alterations in and redecorate such part of the
Premises as the Landlord shall determine in its sole discretion and the Tenant
shall not be entitled to any abatement of fixed rent or other compensation on
account thereof.

                                 ARTICLE TWENTY

                    20. ELEVATORS, CLEANING, SERVICES, ETC.

         20.1. The Landlord will (i) supply, during Business Hours, an elevator
for the transmission of freight and/or passengers to the floor on which the
Premises is located, (ii) subject to any applicable policies or regulations
adopted by any utility or governmental authority, supply during Business Hours
in the heating season heat for the warming of the Premises and the public
portions of the Building, and (iii) subject to any applicable policies or
regulations adopted by any utility or governmental authority, supply during
Business Hours air conditioning (including cooling during the cooling season as,
in the Landlord's judgment, may be necessary) and ventilation to all portions of
the Premises, if any, which are served by the Building's air conditioning and
ventilation systems. No representation is made by the Landlord with respect to
the adequacy or fitness of such air conditioning or ventilation. Unless
otherwise provided in this Lease, "Business Hours", means the generally
customary daytime business hours of the Tenant (but not before 8:00 A.M. or
after 6:00 P.M.) of days other than Saturdays, Sundays and, as established by
the Landlord, holidays.

         20.2. The Landlord shall, when and to the extent reasonably requested
by the Tenant, and to the extent available furnish (i) additional heating and/or
ventilating and (ii) cleaning services, all upon such reasonable terms and
conditions as shall be determined by

                                      -19-
<PAGE>

the Landlord, including the payment by the Tenant of the Landlord's reasonable
charge therefor. The Tenant will also pay the Landlord's reasonable charge for
(a) any cleaning of the Premises required because of the carelessness or
indifference of any Tenant Party or because of the nature of any Tenant Party
business, and (b) the removal of any refuse and rubbish of any Tenant Party from
the Premises and the Building.

         20.3. The Landlord reserves the right, without liability to the Tenant
and without constituting any claim of constructive eviction, to stop or
interrupt any heating, elevator, lighting, ventilating, air conditioning, power,
water, cleaning or other service and to interrupt the use of any Building
facilities, at such times as may be necessary and for as long as may reasonably
be required by reason of accidents, strikes, the making of repairs, alterations
or improvements, inability to secure a proper supply of fuel, steam, water,
electricity, labor or supplies, or by reason of any other cause beyond the
reasonable control of the Landlord.

                               ARTICLE TWENTY-ONE

                  21. LEASE CONTAINS ALL AGREEMENTS-NO WAIVERS

         21.1. This Lease contains all of the understandings relating to the
leasing of the Premises and the Landlord's obligations in connection therewith
and neither the Landlord nor any agent or representative of the Landlord has
made or is making, and the Tenant in executing and delivering this Lease is not
relying upon, any warranties, representations, promises or statements
whatsoever, except to the extent expressly set forth in this Lease. All
understandings and agreements, if any, heretofore had between the parties are
merged in this Lease, which alone fully and completely expresses the agreement
of the parties.

         21.2. The failure of the Landlord to insist in any instance upon the
strict keeping, observance or performance of any provision of this Lease or to
exercise any election in this Lease shall not be construed as a waiver or
relinquishment for the future of such provision, but the same shall continue and
remain in full force and effect. No waiver or modification by the Landlord of
any provision of this Lease shall be deemed to have been made unless expressed
in writing and signed by the Landlord. No surrender of possession of the
Premises or of any part thereof or of any remainder of the term of this Lease
shall release the Tenant from any of its obligations under this Lease unless
accepted by the Landlord in writing. The receipt and retention by the Landlord
of Rent from anyone other than the Tenant shall not be deemed a waiver of the
breach by the Tenant of any provision in this Lease, or the acceptance of such
other person as a tenant, or a release of the Tenant from its further observance
of the provisions of this Lease. The receipt and retention by the Landlord of
Rent with knowledge of the breach of any provision of this Lease shall not be
deemed a waiver of such breach.

                               ARTICLE TWENTY-TWO

                         22. PARTIES BOUND; EXCULPATION

         22.1. The provisions of this Lease shall bind and benefit the
respective successors, assigns and legal representatives of the parties to this
Lease except that (1) no violation of the provisions of Article Seven shall
operate to vest any rights in any successor, assignee or legal representative of
the Tenant and (2) the provisions of this Article shall not be

                                      -20-
<PAGE>

construed as modifying the conditions of limitation contained in Article
Fifteen. The obligations of the Landlord under this Lease shall not, however, be
binding upon the Landlord herein named (or any transferee of its interest in the
Building or the Premises) with respect to the period subsequent to the transfer
of its interest in the Building or the Premises (a lease of the entire interest
being deemed such a transfer).

         22.2. The Tenant shall look solely to the Landlord's interest in the
Land and the Building (or the proceeds thereof) for the satisfaction of any
monetary claim under this Lease, or for the collection of any judgment (or other
judicial process) based thereon, and no other property or assets of the Landlord
(or any affiliate, shareholder, director, officer, employee, partner, agent,
representative, or beneficiary of the Landlord, disclosed or undisclosed) shall
be subject to levy, execution or other enforcement procedure for the
satisfaction of such claim or judgment (or other judicial process).

                              ARTICLE TWENTY-THREE

                 23. CURING TENANT'S DEFAULTS-ADDITIONAL RENTS

         23.1. If the Tenant shall default in the observance of any provision of
this Lease, the Landlord, without thereby waiving such default, may perform the
same for the account and at the expense of the Tenant (a) immediately or at any
time thereafter and without notice in the case of emergency or in case such
default unreasonably interferes with the use by any other tenant of any space in
the Building or with the efficient operation of the Building or will result in a
violation of any Requirement applicable to the Land, the Building or the
Premises or any part thereof, to the Tenant's use thereof or to the Tenant's
observance of any provision of this Lease, or in a cancellation of an insurance
policy maintained by the Landlord, and (b) in any other case if such default
continues after fifteen (15) days from the date of the giving by the Landlord of
notice of the Landlord's intention so to perform the same, provided, however,
that if the Tenant's default constitutes a default under any underlying lease or
underlying mortgage and the lessor or mortgagee thereof notifies the Landlord of
such default, then if the cure period afforded the Tenant extends beyond the
tenth day preceding the end of the cure period permitted to the Landlord under
the underlying lease or underlying mortgage, the Landlord may so notify the
Tenant, in which event the Landlord's right to cure the Tenant's default will
commence upon such tenth day. All costs and expenses incurred by the Landlord in
connection with any such performance by it for the account of the Tenant and all
costs and expenses, including reasonable counsel fees and disbursements incurred
by the Landlord in any action or proceeding (including any summary dispossess
proceeding) brought by the Landlord to enforce any obligation of the Tenant
under this Lease and/or right of the Landlord in or to the Premises, shall be
paid by the Tenant to the Landlord upon demand. Except as expressly provided to
the contrary in this Lease, all costs and expenses which, pursuant to this Lease
(including the rules and regulations referred to in this Lease) are incurred by
the Landlord and payable to it by the Tenant and all charges, amounts and sums
payable to the Landlord by the Tenant for any property, material, labor, utility
or other services which, pursuant to this Lease or at the request and for the
account of the Tenant, are provided, furnished or rendered by the Landlord shall
become due and payable by the Tenant to the Landlord in accordance with the
terms of bills therefor to be rendered by the Landlord to the Tenant. If any
cost, expense, charge, amount or sum referred to in this Section or elsewhere in
this Lease is not paid when due as provided in this Lease, the same shall become
due by the

                                      -21-
<PAGE>

Tenant as additional rent under this Lease. If any Rent or damages payable under
this Lease is not paid when due, the same shall bear interest at the rate of 2%
per month (but in no event at a rate in excess of that permitted by law) from
the due date thereof until paid and the amount of such interest shall be deemed
additional rent under this Lease. If there is a nonpayment by the Tenant of any
such additional rent and/or any other additional rent becoming due under this
Lease, the Landlord, in addition to any other right or remedy, shall have the
same rights and remedies as in the case of default by the Tenant in the payment
of the fixed rent. If the Tenant is in arrears in payment of Rent, the Tenant
waives the Tenant's right, if any, to designate the items against which any
payments made by the Tenant are to be credited, and the Landlord may apply any
payments made by the Tenant to any items the Landlord sees fit, irrespective of
and notwithstanding any designation or request by the Tenant as to the items
against which any such payments shall be credited. The Landlord reserves the
right, without liability to the Tenant and without constituting any claim of
constructive eviction, to suspend furnishing or rendering to the Tenant any
property, material, labor, utility or other service, wherever the Landlord is
obligated to furnish or render the same at the expense of the Tenant, in the
event that (but only so long as) the Tenant is in arrears in paying the Landlord
therefor at the expiration of five (5) days after the Landlord shall have given
to the Tenant notice demanding the payment of such arrears.

                              ARTICLE TWENTY-FOUR

                  24. REAL ESTATE TAXES AND OPERATING EXPENSES

         24.1. The following terms shall have the meanings set forth below:

         "Landlord's Statement" means an instrument or instruments stating
either (i) the Taxes for any Tax Year, or (ii) the Operating Expenses for any
Operating Year.

         "Taxes" shall include the aggregate amount of (i) all real estate
taxes, assessments (special or otherwise), sewer and water rents, rates and
charges, business improvement district impositions and any other governmental
levies, impositions or charges, whether general, special, ordinary,
extraordinary, foreseen or unforeseen, which may be assessed, levied or imposed
upon all or any part of the Land or the Building, and (ii) any expenses
(including attorneys' fees and disbursements and experts' and other witness'
fees) incurred in contesting any of the foregoing or the assessed value of all
or any part of the Land or the Building. If at any time after the date hereof
the methods of taxation prevailing at the date hereof shall be altered so that
in lieu of or as an addition to or as a substitute for the whole or any part of
any Taxes there shall be assessed, levied or imposed (A) a tax, assessment,
levy, imposition or charge based on the rents received from the Land or the
Building, whether or not wholly or partially as a capital levy or otherwise, (B)
a license fee measured by the rents, or (C) any other tax, assessment, levy,
imposition, charges or license fee however described, measured by or based in
whole or in part upon all or any part of the Land or the Building and imposed
upon the Landlord, then all such taxes, assessments, levies, impositions,
charges or license fees or the part thereof so measured or based shall be deemed
to be Taxes. Taxes shall not include franchise, gift, inheritance, estate, sales
or gross receipts taxes imposed upon the Landlord by any governmental authority.

         "Excess Taxes" shall mean the amount equal to the difference between
(i) Taxes for any Tax Year, and (ii) Taxes for the Tax Year ending June 30,
2003. In the event that Taxes for any

                                      -22-
<PAGE>

specific Tax Year are less than the Taxes for the Tax Year ending June 30, 2003,
then Excess Taxes shall be zero.

         "Tax Year" means the period July 1 through June 30 (or such other
period as may be duly adopted by the City of New York as its fiscal year for
real estate tax purposes), all or any portion of which falls within the Lease
term.

         "Tenant's Projected Tax Payment" means the Landlord's estimate of the
Tenant's Tax Payment for the then current Tax Year, payable in equal monthly
installments by the Tenant to the Landlord as additional rent, which may be
revised by the Landlord from time to time during any Tax Year.

         "Tenant's Share" means eighteen percent (18%).

         "Tenant's Tax Payment" means Tenant's Share of the Excess Taxes for any
Tax Year.

         "Operating Year" means each calendar year, all or any portion of which
falls within the Lease term.

         "Operating Expenses" shall include the aggregate of all costs and
expenses (and taxes, if any, thereon) paid or incurred by or on behalf of the
Landlord (whether directly or through independent contractors) in accordance
with generally accepted accounting principles consistently applied in respect of
the operation, maintenance, repair, replacement, management and security of the
Land and the Building, including insurance premiums (and the additional costs,
if any, of commercially reasonable endorsements and waiver of the insurer's
right of subrogation), the cost of electricity, gas, oil, steam, water, air
conditioning and other fuel and utilities serving common areas of the Building
(i.e., areas not leased to the Tenant or other tenants of the Building which are
used or usable for the benefit of all tenants generally), the reasonable costs
of leasing and operating any Building management office at the Building,
attorneys' fees and disbursements and auditing, management and other
professional fees and expenses, and cleaning and janitorial services for common
areas, but specifically excluding (i) Taxes, (ii) franchise or income taxes
imposed upon the Landlord, (iii) mortgage amortization and interest, (iv)
leasing commissions, (v) the cost of tenant installations and decorations
incurred in connection with preparing space for a new tenant, (vi) the cost of
electricity supplied to Building tenants (including the Tenant) for their
separate use which is paid for by such tenants, (vii) administrative salaries
and wages of the Landlord's employees above the grade of Building manager,
(viii) ground rent, (ix) the cost of repairs or other work incurred by reason of
fire, windstorm or other casualty, except those expenses not covered by
insurance proceeds and (x) the cost of capital improvements or alterations,
except for capital improvements which (A) are required in order to comply with
Requirements, (B) constitute improvements or replacements to structural elements
of the Building or Building systems made following the expiration of the useful
lives thereof, or (C) result in reducing Operating Expenses (as, for example, a
labor-saving improvement). The cost of such capital improvements, amortized on a
straight-line basis, with interest at the rate of ten percent (10%) per annum,
shall be added to Operating Expenses for each Operating Year during the Lease
term from and after the date any such capital improvement is made. If the
occupancy of the Building during any Operating Year is less than ninety-five
percent (95%), the Landlord shall make an appropriate adjustment of the variable

                                      -23-
<PAGE>

components of Operating Expenses that would have been incurred had the Building
been ninety-five percent (95%) occupied. For purposes hereof, "variable
components" shall include only those components of Operating Expenses that are
directly affected by variations in occupancy levels.

         "Excess Operating Expenses" shall mean the amount equal to the
difference between (i) Operating Expenses for any Operating Year, and (ii)
Operating Expenses for the twelve (12)-month period ended December 31, 2002
("Base Operating Year"). In the event that Operating Expenses for any specific
Operating Year are less than the Operating Expenses for the Base Operating Year,
then Excess Operating Expenses shall be zero.

         "Tenant's Operating Payment" means Tenant's Share of the Excess
Operating Expenses payable for any Operating Year.

         "Tenant's Projected Operating Payment" means the Landlord's reasonable
estimate of Tenant's Operating Payment for the then current Operating Year,
payable in equal monthly installments by the Tenant to the Landlord as
additional rent, which may be revised by the Landlord from time to time during
any Operating Year.

                  24.2. (a) During the Lease term, the Tenant shall pay Tenant's
         Tax Payment to the Landlord commencing on and as of July 1, 2003, and
         Tenant's Operating Payment to the Landlord commencing on and as of
         February 1, 2003. The Tenant shall pay Tenant's Projected Tax Payment
         and Tenant's Projected Operating Payment to the Landlord on each fixed
         rent payment date ("Payment Date") from and after the respective dates
         set forth in the preceding sentence. Notwithstanding the foregoing, the
         Landlord may elect to collect Tenant's Tax Payment in full or in
         quarterly or biannual or other installments on any Payment Date the
         Landlord designates in writing. If the Landlord shall fail to provide
         to the Tenant a statement of Tenant's Projected Tax Payment or Tenant's
         Projected Operating Payment for any Tax Year or Operating Year, or
         shall revise Tenant's Projected Tax Payment or Tenant's Projected
         Operating Payment during any Tax Year or Operating Year, then until
         such statement or revised statement is provided to the Tenant, the
         Tenant shall continue to pay Tenant's Projected Tax Payment and
         Tenant's Projected Operating Payment in the amount payable by the
         Tenant in respect of the preceding Tax Year or Operating Year.

         (b) After the end of each Tax Year and Operating Year, the Landlord
shall furnish to the Tenant a Landlord's Statement for such Tax Year and
Operating Year. Each such Landlord's Statement shall be accompanied by a
computation of the actual amount of Taxes and Operating Expenses for the Land
and the Building for the preceding Tax Year or Operating Year. If any Landlord's
Statement shall show that the sums paid by the Tenant resulted in (i) an
underpayment by the Tenant of Tenant's Tax Payment or Tenant's Operating
Payment, the Tenant shall pay to the Landlord the amount of the underpayment
within thirty (30) days after notice from the Landlord, or (ii) an overpayment
by the Tenant of Tenant's Tax Payment or Tenant's Operating Payment, the
Landlord shall apply a credit in the amount of the overpayment against the next
installments of additional rent payable by the Tenant under this Lease, and if
any such credit remains outstanding as of the expiration or termination date of
the Lease term and there is no default by the Tenant in the performance of its
Lease obligations which is then

                                      -24-
<PAGE>

continuing beyond the expiration of any applicable notice and cure period(s),
the Landlord will pay the amount thereof to the Tenant within ninety (90) days
thereafter. Each of the parties' respective obligations under this Lease in the
case of overpayment or underpayment shall survive the expiration or earlier
termination of this Lease.

         (c) Only the Landlord shall be eligible to institute Tax reduction or
other proceedings to reduce the assessed value of the Land and/or the Building,
and the filing of any Tax reduction or other proceedings by the Tenant without
the Landlord's prior consent shall constitute a default under this Lease. If
during the Lease term the Landlord shall receive a refund or reduction of Taxes
for any Tax Year after the Tax Year ending June 30, 2003, or any Tax abatement,
exemption or deferral, the Landlord shall, within thirty (30) days after such
refund, discount, abatement or other benefit is actually received or credited
against Taxes then due and payable, either pay to the Tenant, or at the
Landlord's election, credit against the future installments of fixed rent due
under this Lease, an amount equal to Tenant's Share of the refund or reduction,
provided that such amount shall not exceed Tenant's Tax Payment paid for such
Tax Year. Nothing herein contained shall obligate the Landlord to file any
application or institute any proceeding seeking a reduction in Taxes or the
assessed value of the Land and/or the Building.

         (d) Tenant's Tax Payment shall be made as provided in this Section 24.2
regardless of the fact that the Tenant may be exempt, in whole or in part, from
the payment of any taxes by reason of the Tenant's tax exempt status or for any
other reason whatsoever.

                              ARTICLE TWENTY-FIVE

                               25. MISCELLANEOUS

         25.1. Without incurring any liability to the Tenant, the Landlord may
permit access to the Premises and open the same, whether or not the Tenant shall
be present, upon demand of any receiver, trustee, assignee for the benefit of
creditors, sheriff, marshal or court officer entitled to, or reasonably
purporting to be entitled to, such access for the purpose of taking possession
of, or removing, the Tenant's property or for any other purpose (but this
provision and any action by the Landlord hereunder shall not be deemed a
recognition by the Landlord that the person or official making such demand has
any right or interest in or to this Lease, or in or to the Premises), or upon
demand of any representative of the fire, police, building, sanitation or other
department of the city, state or federal government.

         25.2. If an excavation shall be made upon any land adjacent to the
Building, or shall be authorized to be made, the Tenant shall afford to the
person causing or authorized to cause such excavation a license to enter upon
the Premises for the purpose of doing such work as said person shall deem
necessary to preserve the Building from injury or damage, all without any claim
for damages or indemnity against the Landlord or diminution or abatement of
rent.

         25.3. The Tenant shall not be entitled to exercise any right of
termination or other option granted to it by this Lease at any time when the
Tenant is in default under this Lease. With respect to any such exercise, time
shall be of the essence.

                                      -25-
<PAGE>

         25.4. The headings of the Articles of this Lease are for convenience
only and are not to be considered in construing said Articles. The Tenant
understands, acknowledges and agrees that (a) this Lease has been freely
negotiated by both parties hereto with the assistance of competent counsel, and
(b) in any controversy, dispute, contest, proceeding or action over the meaning,
interpretation, validity or enforceability of this Lease, or any term,
provision, agreement or condition herein, there shall be no inference,
presumption or conclusion drawn whatsoever against either party by virtue of
such party having drafted, or caused to be drafted, this Lease or any portion
hereof, and, to the fullest extent possible, this Lease and all of its
provisions shall be construed without regard to any presumption or other rule
requiring construction against the party drafting, or causing to be drafted,
this Lease.

         25.5. If the Tenant holds-over in the Premises after the expiration or
termination of this Lease without the consent of the Landlord, the Tenant shall:

         (a) pay as hold-over rental for each month of the hold-over tenancy an
amount equal to the greater of (i) one and one-half times the fair market rental
value of the Premises for such month (as reasonably determined by Landlord) or
(ii) one and one-half times the Rent which Tenant was obligated to pay for the
month immediately preceding the expiration or termination of this Lease;

         (b) be liable to the Landlord for (i) any payment or rent concession
which Landlord may be required to make to any tenant obtained by the Landlord
for all or any part of the Premises (a "New Tenant") in order to induce such New
Tenant not to terminate its lease by reason of the holding-over by the Tenant
and (ii) the loss of the benefit of the bargain if any New Tenant shall
terminate its lease by reason of the holding-over by the Tenant; and

         (c) indemnify the Landlord against all claims for damages by any New
Tenant.

         No holding-over by the Tenant, nor the payment to the Landlord of the
amounts specified above, shall operate to extend the term of this Lease.

         25.6. Any obligation of the Landlord or the Tenant which by its nature
or under the circumstances can only be, or by the provisions of this Lease may
be, performed after the expiration or earlier termination of this Lease, and any
liability for a payment which shall have accrued to or with respect to any
period ending at the time of such expiration or termination, unless expressly
otherwise provided in this Lease, shall survive the expiration or earlier
termination of this Lease.

         25.7. If any provision of this Lease or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such provision to persons or
circumstances other than those as to which it is invalid or unenforceable, shall
not be affected thereby, and each provision of this Lease shall be valid and be
enforced to the fullest extent permitted by law.

         25.8. It is the intention of the Landlord and the Tenant to create the
relationship of landlord and tenant, and no other relationship whatsoever, and
nothing herein shall be

                                      -26-
<PAGE>

construed to make the Landlord and the Tenant partners or joint venturers, or to
render either party hereto liable for any of the debts or obligations of the
other party.

         25.9. The Landlord and the Tenant acknowledge that (i) improvements
(including Fixtures) made or installed by the Tenant in the Premises do not
constitute consideration for the granting of this Lease to the Tenant and (ii)
there has been no adjustment in the fixed or additional rent payable under this
Lease on account of such improvements (including Fixtures).

         25.10. If there is any payment required to be made by the Tenant under
this Lease for which no time period is stated within which the payment must be
made, such payment shall be made within thirty (30) days after demand by the
Landlord.

                               ARTICLE TWENTY-SIX

                            26. INTENTIONALLY OMITTED

                              ARTICLE TWENTY-SEVEN

                            27. BROKERAGE COMMISSION

         27.1. The Tenant represents that it has dealt with no brokers in
connection with this Lease. The Tenant shall indemnify, defend (with legal
counsel reasonably acceptable to the Landlord) and hold harmless the Indemnitees
from and against all liability, claims, suits, demands, judgments, costs,
interest and expenses (including reasonable counsel fees and disbursements
incurred in the defense thereof) to which the Indemnitees may be subject or
suffer by reason of any claim made by any person, firm or corporation for any
commission, expense or other compensation as a result of the execution and
delivery of this Lease or the demising of the Premises by the Landlord to the
Tenant pursuant to this Lease.

                              ARTICLE TWENTY-EIGHT

                               28. QUIET ENJOYMENT

         28.1. If, and so long as, the Tenant performs each and every provision
in this Lease on the part of the Tenant to be performed, the Tenant shall
quietly enjoy the Premises without hindrance or molestation by the Landlord
subject, however, to the provisions of this Lease and to the Qualified
Encumbrances.

                              ARTICLE TWENTY-NINE

                            29. HAZARDOUS SUBSTANCES

         29.1. The Tenant shall not (i) cause or permit to be brought to the
Building or the Land any hazardous substances, (ii) cause or permit the storage
or use of hazardous substances in any manner not permitted by any Requirements
applicable to the Land, the Building or the Premises or any part thereof, or
(iii) cause or permit the escape, disposal or release of any hazardous
substances on or in the vicinity of the Building or Land; provided, that

                                      -27-
<PAGE>

nothing herein shall prevent the Tenant's use of any hazardous substances
customarily used in the ordinary course of office work if such use is for such
ordinary course of office work and is in accordance with all Requirements
applicable to the Land, the Building or the Premises or any part thereof.

         29.2. "Hazardous substances" are (i) any "hazardous wastes" as defined
by the Resource, Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901
et seq.), as amended, and regulations promulgated thereunder; (ii) any
"hazardous, toxic or dangerous waste, substance or material" specifically
defined as such in (or for purposes of) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et
seq.), as amended, and regulations promulgated thereunder; and (iii) any
hazardous, toxic or dangerous chemical, biological or other waste, substance or
material as defined in any so-called "superfund" or "superlien" law or any other
federal, state or local statute, law, ordinance, code, rule, regulation, order
or decree regulating, relating to or imposing liability or standards of conduct
concerning such waste, substance or material; including, without limiting the
generality of the foregoing, asbestos, radon, urea formaldehyde, polychlorinated
biphenyls, and petroleum products including gasoline, fuel oil, crude oil and
various constituents of such products. Without limiting the generality of
Section 6.1(j) hereof, the Tenant agrees that the covenants and warranties
contained in this Article are included within the matters as to which the
Indemnitees shall be indemnified pursuant to said Section 6.1(j).

         29.3. The covenants contained in this Article shall survive the
expiration or earlier termination of this Lease.

                                 ARTICLE THIRTY

                                  30. BILLBOARD

         30.1. Subject to the terms and conditions of this Lease, the Tenant
shall have the right to display advertisements on the billboard currently
attached to the east side of the Building (the "Billboard"), provided that any
and all such advertisements shall have been, in each instance, approved by the
Landlord prior to the display of same, such approval of the Landlord not to be
unreasonably withheld or delayed. The Tenant's acceptance and use of the
Billboard shall be governed by the terms and provisions of this Lease which
relate to the acceptance, use and occupancy of the Premises, including, without
limitation, Sections 2.1, 3.2, 3.3, 4.1, 6.1, 11.1 and 19.1 hereof. In
consideration for the right to display advertisements on the Billboard pursuant
to this Article, the Tenant shall pay the Landlord the sum of Eight Thousand
Dollars ($8,000) per month (the "Billboard Rent") at such time and place that
fixed rent shall be paid to the Landlord pursuant to Article One hereof. Either
party hereto shall have the option to terminate the Tenant's right to use the
Billboard as herein provided upon sixty (60) days prior written notice to the
other party hereto. From and after the effective date of such termination
notice, the Tenant shall have no further right to display advertisements on the
Billboard and shall not be obligated to pay the Billboard Rent. In the event
neither party hereto shall have exercised its option to terminate the Tenant's
right to utilize the Billboard as herein contemplated prior to a Default
Termination, then in addition to any other sums due to the Landlord by the
Tenant hereunder or otherwise in connection with a Default Termination, the
Tenant shall pay to the Landlord as damages an amount equal to Sixteen Thousand
Dollars ($16,000), less any net rents

                                      -28-
<PAGE>

received by the Landlord with respect to the lease of the Billboard during the
sixty (60) day period following a Default Termination, such net rents to be
determined by first deducting from the gross rents as and when received by the
Landlord from such reletting the expenses incurred by the Landlord in reletting
the Billboard, including altering and preparing the Billboard for new tenants,
brokers' commissions, and all other expenses properly chargeable against the
Billboard and the rental therefrom in connection with such reletting, it being
understood that any such reletting may be for a period equal to or shorter or
longer than said sixty (60) day period; provided, further, that (i) in no event
shall the Tenant be entitled to receive any excess of such net Billboard rents
over the sum of Sixteen Thousand Dollars ($16,000), and (ii) if the Billboard or
any part thereof should be relet in combination with other space, then proper
apportionment shall be made of the rent received from such reletting and of the
expenses of reletting.

                                      -29-
<PAGE>

         IN WITNESS WHEREOF, the Landlord and the Tenant have duly executed this
Lease as of the day and year first above written.

                                            LANDLORD:
                                            345 W. 37TH CORP.

                                            BY:     /S/ Morris Goldfarb
                                                    ---------------------------
                                            NAME:   MORRIS GOLDFARB
                                            TITLE:  CHIEF EXECUTIVE OFFICER

                                            TENANT:

                                            G-III LEATHER FASHIONS INC.

                                            BY:     /S/ Wayne Miller
                                                    ---------------------------
                                            NAME:   WAYNE S. MILLER
                                            TITLE:  CHIEF FINANCIAL OFFICER

                                      -30-
<PAGE>

                              RULES AND REGULATIONS

         1. The rights of the Tenant in the sidewalks, entrances, corridors,
stairways and elevators of the Building are limited to ingress to and egress
from the Premises for any Tenant Party, and the Tenant shall not invite to the
Premises, nor permit the visit thereto by, persons in such numbers or under such
conditions as to interfere with the use and enjoyment by others of the
sidewalks, entrances, corridors, stairways, elevators or any other facilities of
the Building. Fire exits and stairways are for emergency use only, and they
shall not be used for any other purpose by any Tenant Party. The Landlord shall
have the right to regulate the use of and operate the public portions of the
Building, as well as portions furnished for the common use of the tenants, in
such manner as it deems best for the benefit of the tenants generally.

         2. The Landlord may refuse admission to the Building outside of
Business Hours to any person not having a pass issued by the Landlord or not
properly identified, and may require all persons admitted to or leaving the
Building outside of Business Hours to register. Any person whose presence in the
Building at any time shall, in the judgment of the Landlord, be prejudicial to
the safety, character, reputation and interests of the Building or of its
tenants may be denied access to the Building or may be ejected therefrom. In
case of invasion, riot, public excitement or other commotion the Landlord may
prohibit all access to the Building during the continuance of the same, by
closing doors or otherwise, for the safety of the tenants or protection of
property in the Building. The Landlord shall, in no way, be liable to the Tenant
for damages or loss arising from the admission, exclusion or ejection of any
person to or from the Premises or the Building under the provisions of this
rule. The Landlord may require any person leaving the Building with any package
or other object to exhibit a pass from the tenant from whose Premises the
package or object is being removed, but the establishment or enforcement of such
requirement shall not impose any responsibility on the Landlord for the
protection of the Tenant against the removal of property from the Premises of
the Tenant.

         3. The Tenant shall not obtain or accept for use in the Premises ice,
drinking water, food, beverage, towel, linen, uniform, barbering, bootblacking
or similar or related services from any persons not authorized by the Landlord
to furnish such services. Such services shall be furnished only at such hours,
in such places within the Premises and under such regulations as may be fixed by
the Landlord.

         4. Where any damage to the public portions of the Building or to any
portions used in common with other tenants is caused by any Tenant Party, the
cost of repairing the same shall be paid by the Tenant upon demand.

         5. No lettering, sign, advertisement, trademark, emblem, notice or
object shall be displayed in or on the windows or doors, or on the outside of
the Premises, or at any point inside the Premises where the same might be
visible outside the Premises, except that the name of the Tenant may be
displayed on the entrance door of the Premises, subject to the approval of the
Landlord as to the location, size, color and style of such display.

         6. No awnings or other projections of any kind over or around the
windows or entrances of the Premises shall be installed by the Tenant, and only
such window blinds and

                                      -31-
<PAGE>

shades as are approved by the Landlord shall be used in the Premises. Linoleum,
tile or other floor covering shall be laid in the Premises only in a manner
approved by the Landlord.

         7. The Landlord shall have the right to prescribe the weight and
position of safes and other objects of excessive weight, and no safe or other
object whose weight exceeds the lawful load for the area upon which it would
stand shall be brought into or kept upon the Premises. If, in the judgment of
the Landlord, it is necessary to distribute the concentrated weight of any safe
or heavy object, the work involved in such distribution shall be done in such
manner as the Landlord shall determine and the expense thereof shall be paid by
the Tenant. The moving of safes and other heavy objects shall take place only
upon previous notice to, and at times and in a manner approved by, the Landlord,
and the persons employed to move the same in and out of the Building shall be
acceptable to the Landlord. No machines, machinery or electrical or electronic
equipment or appliances of any kind shall be placed or operated so as to disturb
other tenants. Freight, furniture, business equipment, merchandise and packages
of any description shall be delivered to and removed from the Premises only in
the freight elevators and through the service entrances and corridors, and only
during hours and in a manner approved by the Landlord.

         8. No noise, including the playing of any musical instrument, radio or
television, which, in the judgment of the Landlord, might disturb other tenants
in the Building, shall be made or permitted by the Tenant. No animal shall be
brought into or kept in the Building or the Premises. No dangerous, inflammable,
combustible or explosive object or material shall be brought into or kept in the
Building by the Tenant or with the permission of the Tenant, except as permitted
by law and the insurance companies insuring the Building or the property
therein. The Tenant shall not cause or permit any odors of cooking or other
processes, or any unusual or other objectionable odors, to permeate in or
emanate from the Premises. Any trash containers or receptacles used as such in
the Premises shall be emptied, cared for and cleaned by the Tenant.

         9. No additional locks or bolts of any kind shall be placed upon any of
the doors or windows in the Premises and no lock on any door shall be changed or
altered in any respect. Duplicate keys for the Premises and toilet rooms shall
be procured only from the Landlord, and the Tenant shall pay to the Landlord the
Landlord's reasonable charge therefor. Upon the expiration or termination of the
Lease, all keys to the Premises and toilet rooms shall be delivered to the
Landlord.

         10. All entrance doors in the Premises shall be left locked by the
Tenant when the Premises are not in use. No door (other than a door in an
interior partition of the Premises) shall be left open at any time.

         11. The Landlord reserves the right to rescind, alter or waive any rule
or regulation at any time prescribed by the Landlord when, in its judgment, it
deems it necessary, desirable or proper for its best interest or for the best
interests of the tenants, and no recission, alteration or waiver of any rule or
regulation in favor of one tenant shall operate as a recission, alteration or
waiver in favor of any other tenant. The Landlord shall not be responsible to
the Tenant for the nonobservance or violation by any other tenant of any of the
rules or regulations at any time prescribed by the Landlord.

                                      -32-
<PAGE>

         12. The Tenant shall promptly notify the Landlord of any inspection of
the Premises by governmental agencies having jurisdiction over matters involving
health or safety.

         13. The Tenant shall be responsible for maintaining the Premises rodent
and insect free. Extermination services shall be provided by the Tenant, at its
sole cost and expense, on a monthly basis.

         14. All food storage areas shall be adequately protected against vermin
entry by a contractor approved in advance by the Landlord.

         15. Drain pipes shall be kept free of obstructions and operable at all
times.

         16. Exit signs shall be illuminated, and other exit identification
shall be operable, at all times.

         17. Emergency lighting, including battery components, shall be in good
working condition at all times.

                                      -33-
<PAGE>

         1.       Demise of Premises, Term and Rent.....................1

         2.       Occupancy.............................................2

         3.       Use of Premises.......................................3

         4.       Fixtures..............................................3

         5.       Electric Current and Water............................4

         6.       Various Covenants.....................................5

         7.       Assignment, Mortgaging, Subletting, etc...............9

         8.       Changes or Alterations by Landlord...................10

         9.       Damage by Fire, etc..................................10

         10.      Condemnation.........................................11

         11.      Compliance with Laws.................................13

         12.      Accidents to Sanitary and other Systems..............13

         13.      Subordination........................................14

         14.      Notices..............................................15

         15.      Conditions of Limitation.............................15

         16.      Re-entry by Landlord.................................17

         17.      Damages..............................................17

         18.      Waivers by Tenant....................................19

         19.      Tenant's Removal.....................................19

         20.      Elevators, Cleaning, Services, etc...................19

         21.      Lease Contains All Agreements-No Waivers.............20

         22.      Parties Bound; Exculpation...........................21

         23.      Curing Tenant's Defaults-Additional Rents............21

         24.      Real Estate Taxes and Operating Expenses.............22

         25.      Miscellaneous........................................25

         26.      Intentionally Omitted................................27

         27.      Brokerage Commission.................................27

         28.      Quiet Enjoyment......................................28

         29.      Hazardous Substances.................................28

         30.      Billboard............................................28

                                      -i-

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