Document:

Exhibit 4.10

                                                               EXECUTION VERSION

                                Dated 24 May 2006

                                NORTHERN ROCK PLC
                                   as Servicer

                        GRANITE FINANCE TRUSTEES LIMITED
                              as Mortgages Trustee

                                NORTHERN ROCK PLC
                            as Seller and Beneficiary

                         GRANITE FINANCE FUNDING LIMITED
                          as Funding and a Beneficiary

                        GRANITE FINANCE FUNDING 2 LIMITED
                         as Funding 2 and a Beneficiary

                                     - and -

                              THE BANK OF NEW YORK
    as Security Trustee, Funding 2 Security Trustee and Note Trustee to each
                             of the Funding Issuers

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

                            ADMINISTRATION AGREEMENT
                    EIGHTH DEED OF AMENDMENT AND RESTATEMENT

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

                           SIDLEY AUSTIN BROWN & WOOD
                                WOOLGATE EXCHANGE
                              25 BASINGHALL STREET
                                 LONDON EC2V 5HA
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937

<PAGE>

THIS DEED is made on 24 May 2006

BETWEEN:

(1)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as Servicer;

(2)   GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
      limited company incorporated under the laws of Jersey, Channel Islands
      whose registered office is at 22 Grenville Street, St. Helier, Jersey JE4
      8PX, Channel Islands in its capacity as Mortgages Trustee;

(3)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as Seller and in its capacity as a Beneficiary;

(4)   GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
      limited company incorporated under the laws of Jersey, Channel Islands but
      acting out of its offices established in England (registered overseas
      company number FC022999 and branch number BR005916) at 69 Park Lane,
      Croydon CR9 1TQ in its capacity as Funding and a Beneficiary;

(5)   GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387), a private
      limited company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX in
      its capacity as Funding 2 and a Beneficiary; and

(6)   THE BANK OF NEW YORK a New York banking corporation whose London branch
      address is at One Canada Square, 48th Floor, London E14 5AL in its
      capacity as (1) Security Trustee, (2) Funding 2 Security Trustee and (3)
      Note Trustee to each of the Funding Issuers.

WHEREAS:

(A)   The Servicer carries on the business of, inter alia, administering and
      servicing mortgage loans secured on residential properties within the
      United Kingdom.

(B)   The Seller has sold and assigned to the Mortgages Trustee certain Mortgage
      Loans, together with the benefit of Related Security for the same on the
      terms and subject to the conditions set out in the Mortgages Sale
      Agreement among the parties hereto.

(C)   The Servicer has agreed to administer the Mortgage Loans on behalf of
      the Mortgages Trustee (for and on behalf of the Seller, Funding and
      Funding 2) and to provide certain other administration and management
      services to the Mortgages Trustee, the Seller, Funding and Funding 2 on
      the terms and subject to the conditions contained in the Administration
      Agreement dated 26 March 2001 (as amended, varied, novated or
      supplemented from time to time, the "Administration Agreement").

<PAGE>

(D)   The parties (excluding Funding 2 and the Funding 2 Security Trustee) have
      agreed to amend and restate the Administration Agreement (the "First
      Amended and Restated Administration Agreement") pursuant to the provisions
      set out in a deed of amendment and restatement dated 28 September 2001
      (the "First Deed of Amendment and Restatement").

(E)   The parties (excluding Funding 2 and the Funding 2 Security Trustee) have
      agreed to amend and restate the First Amended and Restated Administration
      Agreement (the "Second Amended and Restated Administration Agreement")
      pursuant to the provisions set out in a deed of amendment and restatement
      dated 27 January 2003 (the "Second Deed of Amendment and Restatement").

(F)   The parties (excluding Funding 2 and the Funding 2 Security Trustee) have
      agreed to amend and restate the Second Amended and Restated Administration
      Agreement (the "Third Amended and Restated Administration Agreement")
      pursuant to the provisions set out in a deed of amendment and restatement
      dated 24 September 2003 (the "Third Deed of Amendment and Restatement").

(G)   The parties (excluding Funding 2 and the Funding 2 Security Trustee) have
      agreed to amend and restate the Third Amended and Restated Administration
      Agreement (the "Fourth Amended and Restated Administration Agreement")
      pursuant to the provisions set out in a deed of amendment and restatement
      dated 28 January 2004 (the "Fourth Deed of Amendment and Restatement").

(H)   The parties (excluding Funding 2 and the Funding 2 Security Trustee) have
      agreed to amend and restate the Fourth Amended and Restated Administration
      Agreement (the "Fifth Amended and Restated Administration Agreement")
      pursuant to the provisions set out in a deed of amendment and restatement
      dated 25 June 2004 (the "Fifth Deed of Amendment and Restatement").

(I)   The parties have agreed to amend and restate the Fifth Amended and
      Restated Administration Agreement (the "Sixth Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed of
      amendment and restatement dated 19 January 2005 (the "Sixth Deed of
      Amendment and Restatement").

(J)   The parties have agreed to amend and restate the Sixth Amended and
      Restated Administration Agreement (the "Seventh Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed of
      amendment and restatement dated 24 August 2005 (the "Seventh Deed of
      Amendment and Restatement").

(K)   The parties wish to amend and restate, the Seventh Amended and Restated
      Administration Agreement pursuant to the provisions set out herein.

(L)   With effect from the date hereof, the provisions of the Administration
      Agreement, the First Amended and Restated Administration Agreement, the
      Second Amended and Restated Administration Agreement, the Third Amended
      and Restated Administration Agreement, the Fourth Amended and Restated
      Administration Agreement, the Fifth Amended and Restated Administration
      Agreement, the Sixth Amended and Restated

                                       2
<PAGE>

      Administration Agreement, the Seventh Amended and Restated Administration
      Agreement and this Deed shall be read and construed as follows.

NOW IT IS HEREBY AGREED as follows:

1.    INTERPRETATION

1.1   The provisions of the Programme Master Definitions Schedule signed for the
      purposes of identification on 19 January 2005 by Sidley Austin Brown &
      Wood and Allen & Overy LLP (as the same may be amended, varied or
      supplemented from time to time with the consent of the parties hereto) is
      expressly and specifically incorporated into and shall apply to this Deed.

1.2   The Administration Agreement as amended and restated pursuant to the First
      Deed of Amendment and Restatement, the Second Deed of Amendment and
      Restatement, the Third Deed of Amendment and Restatement, the Fourth Deed
      of Amendment and Restatement, the Fifth Deed of Amendment and Restatement,
      the Sixth Deed of Amendment and Restatement, the Seventh Deed of Amendment
      and Restatement and pursuant hereto shall be referred to herein as the
      "Amended and Restated Administration Agreement".

1.3   As used in the Amended and Restated Administration Agreement the terms
      "Administration Agreement", "this Administration Agreement", "Agreement",
      "this Agreement", "herein", "hereinafter", "hereof", "hereto" and other
      words of similar import shall mean or refer to the Amended and Restated
      Administration Agreement, unless the context otherwise specifically
      requires.

2.    AMENDMENTS TO THE SEVENTH AMENDED ADMINISTRATION AGREEMENT

2.1   Upon execution of this Deed by each of the parties hereto:

      (a)   the Seventh Amended and Restated Administration Agreement shall be
            and hereby is amended and restated in the form of Appendix I hereto;
            and

      (b)   each party shall be bound by the terms of the Amended and Restated
            Administration Agreement.

3.    NOTE TRUSTEE

3.1   The Note Trustee for each Funding Issuer, for the purposes of Clause 17.1
      (Modifications to Transaction Documents) of the Funding Deed of Charge,
      hereby consents to the amendments to the Seventh Amended and Restated
      Administration Agreement, and is a party to this Deed solely for the
      purposes of providing such consent.

4.    SECURITY TRUSTEE AND FUNDING 2 SECURITY TRUSTEE

      The Security Trustee, for the purposes of Clause 15.2 (Negative Covenants)
      of the Funding Deed of Charge and the Funding 2 Security Trustee for the
      purposes of Clause 15.2 (Negative Covenants) of the Funding 2 Deed of
      Charge hereby consents

                                       3
<PAGE>

      to the amendments to the Seventh Amended and Restated Administration
      Agreement, and are party to this Deed solely for the purposes of providing
      such consent.

5.    CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      No person shall have any right to enforce any provision of this Deed or
      any provision of the Amended and Restated Administration Agreement under
      the Contract (Rights of Third Parties) Act 1999 but this shall not affect
      any right or remedy of a third party which exists or is available apart
      from that Act.

6.    COUNTERPARTS

      This Deed may be executed in any number of counterparts, and has the same
      effect as if the signatures and/or seals on the counterparts were on a
      single copy of this Deed.

7. GOVERNING LAW

7.1   This Deed is governed by, and shall be construed in accordance with,
      English law.

7.2   Each of the parties hereto irrevocably agrees that the courts of England
      shall have jurisdiction to hear and determine any suit, action or
      proceeding, and to settle any disputes, which may arise out of or in
      connection with this Deed and, for such purposes, irrevocably submits to
      the jurisdiction of such courts.

                                       4
<PAGE>

                                 EXECUTION PAGE

IN WITNESS WHEREOF this Deed has been executed as a deed and delivered by the
parties hereto on the day and year first above written.

as Servicer, Beneficiary and Seller

EXECUTED AND DELIVERED AS A DEED                )
for and on behalf of                            )
NORTHERN ROCK PLC                               )
by its duly authorised attorney                 )

/s/ Christopher Job
-------------------------------

Name: Christopher Job

in the presence of:

                                Signature /s/ Tom Ranger
                                          -------------------------
                                          Witness
                                Full name   Tom Ranger
                                Occupation  Securitisation Manager
                                Address     NORTHERN ROCK PLC
                                            Northern Rock House
                                            Gosforth
                                            Newcastle upon Tyne
                                            NE3 4PL

                                       5
<PAGE>

as Mortgages Trustee
EXECUTED AND DELIVERED AS A DEED                         )
for and on behalf of                                     )
GRANITE FINANCE TRUSTEES LIMITED                         )
a company incorporated in Jersey, Channel Islands, by    )
                   and             , being persons       )
who, in accordance with the laws of that territory are   )
acting under the authority of the company                )

/s/ Dean Godwin
-------------------------------

Name: Dean Godwin

in the presence of:

                                Signature /s/ Harvey Austin-Vautier
                                          -------------------------
                                          Witness
                                Full name   Harvey Austin-Vautier
                                Occupation  Administrator
                                Address     22 Grenville Street
                                            St. Helier
                                            Jersey
                                            JE4 8PX

                                       6
<PAGE>

as Funding and a Beneficiary

EXECUTED AND DELIVERED AS A DEED                            )
for and on behalf of                                        )
GRANITE FINANCE FUNDING LIMITED                             )
a company incorporated in Jersey, Channel Islands, by       )
V. Rapley, being a person who, in accordance with           )
the laws of that territory is acting under the              )
authority of the company                                    )

/s/ Vincent Rapley
-------------------------------

Name: Vincent Rapley

in the presence of:
                                Signature /s/ Rinaldo Marcoz
                                          -------------------------
                                          Witness
                                Full name   Rinaldo Marcoz
                                Occupation  Fund Administrator
                                Address     69 Park Lane
                                            Croydon CR9 1TQ

                                       7
<PAGE>

as Funding 2 and a Beneficiary
EXECUTED AND DELIVERED AS A DEED                )
for and on behalf of                            )
GRANITE FINANCE FUNDING 2 LIMITED               )
acting by two directors                         )

-------------------------------
for and on behalf of
LDC Securitisation Director No. 1 Limited
Director

Name:

-------------------------------
for and on behalf of
LDC Securitisation Director No. 2 Limited
Director

Name:

as Security Trustee, Funding 2 Security Trustee
and Note Trustee to each of the Funding Issuers
EXECUTED AND DELIVERED AS A DEED                            )
for and on behalf of                                        )
THE BANK OF NEW YORK                                        )
by its duly authorised signatory                            )

/s/ Kate Russell
-------------------------------
Name: Kate Russell
      Vice President

                                       8
<PAGE>

                                   Appendix I

                  Amended and Restated Administration Agreement

                                       9

<PAGE>

                                                             EXECUTION VERSION

                            Dated 19 January, 2005

                               NORTHERN ROCK PLC
                                  as Servicer

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                           as Seller and Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                       GRANITE FINANCE FUNDING 2 LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
              as Security Trustee and Funding 2 Security Trustee

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

                          EIGHTH AMENDED AND RESTATED
                           ADMINISTRATION AGREEMENT

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

<PAGE>

                                   CONTENTS

1.    Definitions and Interpretation.......................................2

2.    Appointment of Servicer..............................................3

3.    The Administration Services..........................................4

4.    Interest Rates.......................................................7

5.    Administration of Mortgages.........................................11

6.    No Liability........................................................18

7.    New Mortgage Loans..................................................19

8.    Product Switching and Further Advances..............................19

9.    Redemption of Mortgages.............................................19

10.   Powers of Attorney..................................................20

11.   Costs and Expenses..................................................21

12.   Information.........................................................21

13.   Remuneration........................................................23

14.   Insurances..........................................................24

15.   Title Deeds.........................................................26

16.   Data Protection.....................................................26

17.   Covenants and Representations and Warranties of Servicer............28

18.   Services Non-exclusive..............................................29

19.   Termination.........................................................29

20.   Further Assurances..................................................32

21.   Miscellaneous.......................................................33

22.   Confidentiality.....................................................34

23.   No Partnership......................................................35

24.   Assignment..........................................................35

25.   Security Trustee; Authorised Third Party............................36

<PAGE>

26.   New Intercompany Loan Agreements....................................37

27.   Non Petition Covenant; Limited Recourse.............................37

28.   Amendments and Waiver...............................................38

29.   Notices.............................................................39

30.   Third Party Rights..................................................40

31.   Execution in Counterparts; Severability.............................40

32.   Governing Law and Submission to Jurisdiction........................40

33.   Process Agent.......................................................41

34.   Appropriate Forum...................................................41

SCHEDULE 1  THE SERVICES..................................................42

SCHEDULE 2  FORM OF INVESTORS' MONTHLY REPORT.............................43

SCHEDULE 3  SERVICER REPRESENTATIONS AND WARRANTIES.......................44

SCHEDULE 4  AUTHORISED THIRD PARTY........................................46

SCHEDULE 5  MINIMUM SERVICING STANDARDS...................................49

SCHEDULE 6  FORM OF ANNUAL CERTIFICATION..................................51

SCHEDULE 7  FORM OF SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT
      OF COMPLIANCE STATEMENT.............................................53

<PAGE>

THIS AGREEMENT IS MADE ON 26 MARCH, 2001 AND AMENDED AND RESTATED PURSUANT TO
THE DEEDS OF AMENDMENT AND RESTATEMENT DATED 28 SEPTEMBER 2001, 27 JANUARY
2003, 21 MAY 2003, 24 SEPTEMBER 2003, 28 JANUARY 2004, 25 JUNE 2004, 19
JANUARY 2005, 24 AUGUST 2005 AND 24 MAY, 2006 BETWEEN:

(1)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as servicer (the "Servicer" or the "Administrator");

(2)   GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
      limited company incorporated under the laws of Jersey whose registered
      office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
      Islands in its capacity as Mortgages Trustee;

(3)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as Seller and its capacity as a Beneficiary;

(4)   GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
      limited company incorporated under the laws of Jersey but acting out of
      its branch office established in England (registered overseas company
      number FC022999 and branch number BR0051916) at 69 Park Lane, Croydon
      CR9 1TQ in its capacity as a Beneficiary;

(5)   GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387), a private
      limited company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX in
      its capacity as a Beneficiary; and

(6)   THE BANK OF NEW YORK, a New York banking corporation whose London branch
      address is at One Canada Square, 48th Floor, London E14 5AL, in its
      capacity as Security Trustee and as Funding 2 Security Trustee.

WHEREAS:

(A)   The Servicer carries on the business of, inter alia, administering and
      servicing mortgage loans secured on residential properties located
      within the United Kingdom.

(B)   By the Mortgage Sale Agreement, the Seller has agreed to sell and assign
      Mortgage Loans and their Related Security to the Mortgages Trustee. The
      Mortgages Trustee shall hold the Mortgage Portfolio together with any
      New Mortgage Portfolio on trust

<PAGE>

      for Funding, Funding 2 and the Seller pursuant to the terms of the
      Mortgages Trust Deed.

(C)   The Servicer is willing to administer and service the Mortgage Loans on
      behalf of the Mortgages Trustee and to provide certain other
      administration and management services to the Mortgages Trustee, the
      Seller, Funding and Funding 2 on the terms and subject to the conditions
      contained in this Agreement in relation to, inter alia, the Mortgage
      Loans and Related Security sold and assigned to the Mortgages Trustee by
      the Seller.

IT IS HEREBY AGREED as follows:

1.    Definitions and Interpretation

1.1   Definitions: The provisions of the Programme Master Definitions Schedule
      signed for the purposes of identification by Sidley Austin Brown & Wood
      and Allen & Overy LLP on 19 January 2005 (as the same have been and may
      be amended, varied or supplemented from time` to time with the consent
      of the parties hereto) are expressly and specifically incorporated into
      and shall apply to this Agreement.

      For the purposes of this Agreement:

      "Commission" means the United States Securities and Exchange Commission;

      "Regulation AB" means Subpart 229.1100 - Asset Backed Securities
      (Regulation AB), 17 C.F.R. ss.ss.229.1100-229.1123, as such may be
      amended from time to time, and subject to such clarification and
      interpretation as have been provided by the Commission in the adopting
      release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70
      Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from
      time to time;

       "Sarbanes-Oxley  Certification"  has the meaning  specified in Clause
      5.8(a)(iv);

      "Servicing  Criteria"  means  the  "servicing  criteria"  set forth in
      Item 1122(d) of Regulation AB; and

      "Subcontractor" means any vendor, subcontractor or other Person that is
      not responsible for the overall servicing (as "servicing" is commonly
      understood by participants in the mortgage-backed securities market) of
      Mortgage Loans but performs one or more discrete functions identified in
      Item 1122(d) of Regulation AB with respect to the Mortgage Loans under
      the direction or authority of the Servicer.

1.2   Exercise of Discretion: Any reference in this Agreement to any
      discretion, power or right on the part of the Mortgages Trustee shall be
      exercised by the Mortgages Trustee only as directed by the Beneficiaries
      but subject in each case to the provisions of the Mortgages Trust Deed
      and the Controlling Beneficiary Deed.

1.3   Schedules: For the avoidance of doubt, the parties hereto agree that the
      Schedules attached to this Agreement shall form a part of this
      Agreement, and the provisions of this Agreement shall be construed in
      accordance with such Schedules.

                                      2
<PAGE>

2.    Appointment of Servicer

2.1   Appointment: Subject to Clause 4.5 (Termination of Authority) herein,
      and until termination pursuant to Clause 19 herein (Termination), the
      Mortgages Trustee hereby appoints the Servicer to administer and service
      the Mortgages Loans on its behalf, and each of the Mortgage Trustee, the
      Seller and Funding (according to their respective estates and interests)
      hereby appoints the Servicer as its lawful agent on its behalf to
      provide certain other administration and management services and to
      exercise their respective rights, powers and discretions, and to perform
      their respective duties, under and in relation to the Mortgage Loans,
      their Related Security and the applicable Mortgage Conditions. The
      Servicer in each case hereby accepts such appointment on the terms and
      subject to the conditions of this Agreement. The Security Trustee
      consents to the appointment of the Servicer on the terms of and subject
      to the conditions of this Agreement.

2.2   Appointment by Funding 2: Subject to Clause 4.5 (Termination of
      Authority) herein, and until termination pursuant to Clause 19
      (Termination) herein, Funding 2 (according to its estates and interests)
      hereby appoints the Servicer as its lawful agent on its behalf to
      provide certain other administration and management services and to
      exercise its rights, powers and discretions, and to perform its duties,
      under and in relation to the Mortgage Loans, their Related Security and
      the applicable Mortgage Conditions. The Servicer hereby accepts such
      appointment on the terms and subject to the conditions of this
      Agreement. The Funding 2 Security Trustee consents to the appointment of
      the Servicer on the terms of and subject to the conditions of this
      Agreement.

2.3   Power and Authority: For the avoidance of doubt and in connection with
      the rights, powers and discretions conferred under Clause 2.1
      (Appointment) and Clause 2.2 (Appointment by Funding 2) herein, during
      the continuance of its appointment hereunder, the Servicer shall,
      subject to the terms and conditions of this Agreement, the Mortgage
      Conditions, the Mortgage Sale Agreement and the Mortgages Trust Deed,
      have the full power, authority and right to do or cause to be done any
      and all things which it reasonably considers necessary, convenient or
      incidental to the administration of the Mortgage Loans and their Related
      Security or the exercise of such rights, powers and discretions,
      provided however that neither the Mortgages Trustee, the Funding
      Beneficiaries nor their respective directors shall be required or
      obliged at any time to enter into any transaction or to comply with any
      directions which the Servicer may give with respect to the operating and
      financial policies of the Mortgages Trustee and/or the Funding
      Beneficiaries and the Servicer hereby acknowledges that all powers to
      determine such policies (including the determination of whether or not
      any particular policy is for the benefit of the Mortgages Trustee or any
      Funding Beneficiary) are, and shall at all times remain, vested, as the
      case may be, in the Mortgages Trustee and/or each Funding Beneficiary
      (and their respective directors) and none of the provisions of this
      Agreement shall be construed in a manner inconsistent with this proviso.

2.4   Appointment Conditional: The appointment pursuant to Clause 2.1
      (Appointment) herein is conditional upon the issue of the First Issuer
      Notes having taken place and shall take effect upon and from the Initial
      Closing Date automatically without any further action on the part of any
      person PROVIDED THAT if the issue of the First Issuer Notes has not
      occurred by 30 April 2001, or such later date as the First Issuer

                                      3
<PAGE>

      and the Lead Manager may agree, this Agreement shall cease to be of
      further effect.

2.5   Appointment by Funding 2 Conditional: The appointment pursuant to Clause
      2.2 (Appointment by Funding 2) herein is conditional upon the
      acquisition by Funding 2 from the Seller of a portion of the Seller's
      beneficial interest in the Mortgages Trust pursuant to the Seller
      (Mortgages Trust) Assignment Agreement and shall take effect upon and
      from the Funding 2 Programme Date automatically without any further
      action on the part of any person PROVIDED THAT if Funding 2 has not
      acquired from the Seller a portion of the Seller's beneficial interest
      in the Mortgages Trust by 31 January, 2005, or such later date as
      Funding 2 and the Seller may agree, the appointment of the Servicer as
      agent of Funding 2 under Clause 2.2 (Appointment by Funding 2) shall not
      take effect.

3.    The Administration Services

3.1   General:

      (a)   The duty of the Servicer shall be to provide the services set out
            in this Agreement including Schedule 1 (the "Services").

      (b)   If and when the Servicer is required to confirm or state the
            capacity in which it is administering or servicing the Mortgage
            Loans and their Related Security in the Mortgage Portfolio and
            related matters pursuant to this Agreement by any Borrower or any
            third party to this Agreement and to whom the Servicer is by law
            obliged to disclose such information, unless otherwise indicated
            herein, the Servicer shall confirm or state that it is acting in
            its capacity as Servicer of such Mortgage Loans and their Related
            Security and related matters as agent for and on behalf of the
            Mortgages Trustee and not on its own behalf.

3.2   Sub-contracts:

      (a)   The Servicer may sub-contract or delegate the performance of all
            or any of its powers and obligations under this Agreement,
            provided that (but subject to Clause 3.2(b) herein):

            (i)   the prior written consent of the Mortgages Trustee to the
                  proposed arrangement (including, if the Funding
                  Beneficiaries consider it necessary after consulting with
                  the Funding Security Trustees, approving any contract which
                  sets out the terms on which such arrangements are to be
                  made) has been obtained, the Funding Security Trustees have
                  been consulted and notification has been given to each of
                  the Rating Agencies;

            (ii)  where the arrangements involve the custody or control of any
                  Mortgage Loan Files and/or Title Deeds relating to the
                  Mortgage Portfolio for the purpose of performing any
                  delegated Services, the Subcontractor or delegate has
                  executed an acknowledgement in writing acceptable to the
                  Funding Beneficiaries and the Funding Security Trustees to
                  the effect that any such Mortgage Loan Files and/or Title
                  Deeds are and will be held to the order of the Mortgages
                  Trustee (as trustee for the Beneficiaries);

                                      4
<PAGE>

            (iii) where the arrangements involve or may involve the receipt by
                  the Subcontractor or delegate of monies belonging to the
                  Mortgages Trustee and/or the Beneficiaries which, in
                  accordance with this Agreement, are to be paid into the
                  relevant Collection Account, the Subcontractor or delegate
                  has executed a declaration in writing acceptable to the
                  Funding Beneficiaries and the Funding Security Trustees that
                  any such monies held by it or to its order are held on trust
                  for the Mortgages Trustee (as trustee for the Beneficiaries)
                  and will be paid forthwith into the relevant Collection
                  Account in accordance with the terms of the Mortgages Trust
                  Deed;

            (iv)  any such Subcontractor or delegate has executed a written
                  waiver of any Security Interest arising in connection with
                  such delegated Services (to the extent that such Security
                  Interest relates to the Mortgage Portfolio or any amount
                  referred to in (iii) above); and

            (v)   neither the Mortgages Trustee, the Funding Security Trustees
                  nor the Beneficiaries shall have any liability for any
                  costs, charges or expenses payable to or incurred by such
                  Subcontractor or delegate or arising from the entering into,
                  the continuance or the termination of any such arrangement.

      (b)   The provisos in Clause 3.2(a) (i), (ii) and (iii) herein shall not
            apply:

            (i)   to the engagement by the Servicer of:

                  (A)   any receiver, solicitor, insurance broker, valuer,
                        surveyor, accountant, estate agent, insolvency
                        practitioner, auctioneer, bailiff, debt counsellor,
                        tracing agent, property management agent, licensed or
                        qualified conveyancer or other professional adviser
                        acting as such; or

                  (B)   any locksmith, builder or other contractor acting as
                        such in relation to a Mortgaged Property,

                  in any such case being a person or persons whom the Servicer
                  would be willing to appoint in respect of its own mortgages
                  in connection with the performance by the Servicer of any of
                  its obligations or functions or in connection with the
                  exercise of its powers under this Agreement; or

            (ii)  to any delegation to any wholly-owned subsidiary of the
                  Seller from time to time.

      (c)   The Mortgages Trustee and/or the Funding Beneficiaries and the
            Funding Security Trustees may require the Servicer to assign to
            the Mortgages Trustee any rights which the Servicer may have
            against any Subcontractor or delegate arising from the performance
            of services by such person in association with any matter
            contemplated by this Agreement and the Servicer acknowledges that
            such rights assigned to the Mortgages Trustee will be exercised by
            the

                                      5
<PAGE>

            Mortgages Trustee as trustee for the Beneficiaries subject to the
            terms of the Mortgages Trust Deed.

      (d)   Notwithstanding any sub-contracting or delegation of the
            performance of the Servicer's obligations under this Agreement:

            (i)   the Servicer shall not thereby be released or discharged
                  from any liability hereunder;

            (ii)  the Servicer shall remain responsible for the performance of
                  the obligations of the Servicer under this Agreement;

            (iii) the performance or non-performance or the manner of
                  performance of any Subcontractor or delegate of any of the
                  Services shall not affect the Servicer's obligations under
                  this Agreement;

            (iv)  any breach in the performance of the Services by any
                  Subcontractor or delegate shall, subject to the Servicer
                  being entitled for a period of twenty (20) Business Days
                  from receipt of notice of the breach to remedy such breach
                  by any Subcontractor or delegate, be treated as a breach of
                  this Agreement by the Servicer; and

            (v)   the Funding Security Trustees shall have no liability for
                  any act or omission of the Subcontractor or delegate and
                  shall have no responsibility for monitoring or investigating
                  the suitability of any such Subcontractor or delegate.

3.3   Notices etc.

      (a)   Within fifteen (15) days after the Initial Closing Date, the
            Servicer will:

            (i)   on behalf of the Mortgages Trustee (at the direction of the
                  Beneficiaries or with their consent), give to third parties
                  such notices as any of the Beneficiaries are required to
                  give pursuant to the Mortgage Sale Agreement; and

            (ii)  submit for registration at the Companies Registry a duly
                  completed Form 395 and original executed copy of the First
                  Issuer Deed of Charge pursuant to Chapter 1 of Part XII of
                  the Companies Act 1985,

            and in each case, the Servicer shall take all reasonable steps to
            ensure the return by the relevant recipient of the duplicate
            notices of assignment by way of acknowledgement thereof.

      (b)   Promptly upon request by the Funding Beneficiaries and the Funding
            Security Trustees, the Servicer shall procure that any notices
            permitted to be given by the Mortgages Trustee under Clause 6.4
            (Prior to Perfection) of the Mortgage Sale Agreement are so given
            by the Servicer on the Mortgages Trustee's behalf.

3.4   Liability of Servicer:

                                      6
<PAGE>

      (a)   The Servicer shall indemnify each of the Mortgages Trustee and the
            Beneficiaries on demand on an after-tax basis for any loss,
            liability, claim, expense or damage suffered or incurred by either
            of them in respect of the negligence or wilful default of the
            Servicer in carrying out its functions as Servicer under this
            Agreement or the other Transaction Documents or as a result of a
            breach by the Servicer of the terms and provisions of this
            Agreement or the other Transaction Documents in relation to such
            functions.

      (b)   For the avoidance of doubt, the Servicer shall not be liable in
            respect of any loss, liability, claim, expense or damage suffered
            or incurred by the Mortgages Trustee and/or the Beneficiaries
            and/or any other person as a result of the proper performance of
            the Services by the Servicer save where such loss, liability,
            claim, expense or damage is suffered or incurred as a result of
            any negligence or wilful default of the Servicer or as a result of
            a breach by the Servicer of the terms and provisions of this
            Agreement or the other Transaction Documents in relation to such
            functions.

      (c)   Any indemnification under this Clause 3.4 in respect of loss
            suffered by the Beneficiaries whilst Northern Rock is the
            Servicer, shall be paid for by reducing the Seller Share of the
            Trust Property by an amount equal to the relevant loss incurred by
            the Beneficiaries in accordance with Clause 8.5 (Adjustments to
            Trust Property) of the Mortgages Trust Deed and Schedule 2 to the
            Cash Management Agreement.

3.5   Perfection of Mortgages Trustee's and Beneficiaries' Title to the
      Mortgage Loans

      Subject to Clause 6 of the Mortgage Sale Agreement:

      (a)   upon the receipt by the Seller of a written request in accordance
            with Clause 6.2 (Perfection) of the Mortgage Sale Agreement to
            execute transfers and/or assignments, the Servicer shall execute
            or procure the execution of such transfers and/or assignments on
            behalf of the Seller or shall provide sufficient information to
            enable the Mortgages Trustee, either Funding Beneficiary or either
            Funding Security Trustee to do so; and

      (b)   upon the Seller being required to do so in accordance with Clause
            6.1 (Perfection Events) of the Mortgage Sale Agreement, the
            Servicer shall do all or any of the acts, matters or things
            referred to in Clauses 6.2 (Perfection) and 6.3 (Transfer
            Documents) of the Mortgage Sale Agreement.

4.    Interest Rates

4.1   Determination of Interest Rates: Subject to the provisions of applicable
      law, regulations and rules and any regulatory undertakings binding on
      the Servicer or the Issuer from time to time and subject to the
      following provisions of this Clause 4, the Mortgages Trustee and each of
      the Beneficiaries each hereby grants the Servicer full right, liberty
      and authority from time to time to determine:

      (a)   in accordance with the applicable Mortgage Conditions, Mortgage
            Terms and the Base Rate Pledge, the Standard Variable Rate and any
            other discretionary

                                      7
<PAGE>

            rates and margins applicable to the Mortgage Loans chargeable to
            Borrowers from time to time; and

      (b)   the Existing Borrowers' Re-Fix Rate in accordance with Clause 4.4
            (Existing Borrowers' Re-Fix Rate) herein.

      In exercising such right, liberty and authority the Servicer undertakes
      to each of the other parties to this Agreement that it shall not at any
      time set or maintain the Standard Variable Rate and any other
      discretionary rates and margins applicable to the Mortgage Loans at
      rates which are higher than the then prevailing equivalent rates offered
      by the Seller, unless the Servicer is required to do so pursuant to
      Clause 4.3 (Interest Rate Shortfall) herein, and, subject to that
      requirement, that it shall not change the Standard Variable Rate and any
      other discretionary rates and margins applicable to the Mortgage Loans
      save for the same reasons as the Seller was entitled, under the Mortgage
      Conditions, to change the then prevailing equivalent rates offered by
      the Seller prior to the sale and assignment to the Mortgages Trustee of
      the Mortgage Loans comprised in the Mortgage Portfolio and their Related
      Security. Each Issuer, Funding Beneficiary and Funding Security Trustee
      shall be bound by any Mortgage Rates (including the Existing Borrowers'
      Re-Fix Rate) determined by the Servicer in accordance with this Clause
      4.

4.2   Notification to Borrowers: The Servicer shall take all steps necessary
      pursuant to the relevant Mortgage Conditions and/or applicable law,
      regulations and rules to bring each change in the Standard Variable Rate
      and any other discretionary rate or margin applicable to the Mortgage
      Loans and any consequent changes in Monthly Payments to the attention of
      the relevant Borrowers and shall, as soon as reasonably practicable
      after any change in such rates, provide details of such changes to the
      Mortgages Trustee, each Funding Security Trustee and each Beneficiary,
      and shall, upon receipt of a request from any of such parties, notify
      such requesting party of any changes in the Monthly Payments in relation
      to the Mortgage Loans.

4.3   Interest Rate Shortfall:

      (a)   On each Monthly Payment Date the Servicer shall determine, having
            regard to:

            (i)   the income which each of Funding and Funding 2 would expect
                  to receive during the next succeeding Interest Period;

            (ii)  the Mortgage Rates in respect of the Mortgage Loans which
                  the Servicer proposes to set under this Clause 4; and

            (iii) the other resources available to Funding including (but not
                  limited to) the Funding Reserve Fund and amounts standing to
                  the credit of any applicable Issuer Reserve Fund and/or any
                  applicable Issuer Liquidity Reserve Fund and the other
                  resources available to Funding 2 including (but not limited
                  to) the Funding 2 Reserve Fund, the Funding 2 Liquidity
                  Reserve Fund and any applicable Issuer Reserve Fund,

            whether:

                                      8
<PAGE>

                  (A)   Funding would receive an amount of income during that
                        Interest Period which when aggregated with the funds
                        otherwise available to it is less than the amount
                        which is the aggregate of (1) the amount of interest
                        which will be payable by Funding in order to fund
                        (whether by payment to a swap provider or otherwise)
                        the amount of interest payable in respect of the Class
                        A Notes of the Funding Issuers and all amounts which
                        rank in priority thereto on the Payment Date occurring
                        at the end of such Interest Period, and (2) all other
                        amounts payable by Funding which rank in priority to
                        or pari passu with interest due on each Funding
                        Intercompany Loan in respect of interest which is
                        payable on the Class A Notes of the Funding Issuers
                        (the amount (if any) by which it is less being the
                        "Funding Interest Rate Shortfall"); and

                  (B)   Funding 2 would receive an amount of income during
                        that Interest Period which when aggregated with the
                        funds otherwise available to it is less than the
                        amount which is the aggregate of (1) the amount of
                        interest which would be payable by Funding 2 in order
                        to fund (whether by payment to a swap provider or
                        otherwise) the amount of interest payable in respect
                        of the AAA Loan Tranches of each Funding 2
                        Intercompany Loan and all amounts which rank in
                        priority thereto on the Monthly Payment Date occurring
                        at the end of such Interest Period and (2) all other
                        amounts payable by Funding 2 which rank in priority to
                        or pari passu with interest due on each Funding 2
                        Intercompany Loan in respect of the AAA Loan Tranches
                        (the amount (if any) by which it is less being a
                        "Funding 2 Interest Rate Shortfall").

            (b)   If the Servicer determines that there will be either a
                  Funding Interest Rate Shortfall or a Funding 2 Interest Rate
                  Shortfall, it will within one (1) London Business Day of
                  such determination give written notice thereof to the
                  Mortgages Trustee, each Funding Beneficiary and each Funding
                  Security Trustee of such Interest Rate Shortfall(s) and of
                  the Standard Variable Rate and other discretionary rates and
                  margins applicable to the Mortgage Loans which would, in the
                  Servicer's opinion, need to be set in order for:

                  (i)   no Funding Interest Rate Shortfall to arise, having
                        regard to the obligations of Funding under all Funding
                        Intercompany Loans;

                  (ii)  no Funding 2 Interest Rate Shortfall to arise, having
                        regard to the obligations of Funding 2 under all
                        Funding 2 Intercompany Loans; and

                  (iii) no Interest Rate Shortfalls to arise, having regard to
                        the obligations of Funding and Funding 2 under all
                        Intercompany Loans.

            (c)   If the Mortgages Trustee, Funding and/or the Security
                  Trustee notify the Servicer that, having regard to the
                  obligations of Funding, the Standard Variable Rate and other
                  discretionary rates and margins should be increased in order
                  for no Funding Interest Rate Shortfall to arise, but no
                  notification is

                                      9
<PAGE>

                  provided to the Servicer in accordance with Clause 4.3(d)
                  then the Servicer, as agent for and on behalf of the
                  Mortgages Trustee, shall take all steps which are necessary,
                  including publishing any notice which is required in
                  accordance with the Mortgage Terms, to effect the changes in
                  such rates (such changes being those previously notified in
                  relation to Clause 4.3(b)(i)) on the date(s) specified in
                  the notice referred to in Clause 4.3(b) herein.

            (d)   If the Mortgage Trustee, Funding 2 and/or the Funding 2
                  Security Trustee notify the Servicer that having regard to
                  the obligations of Funding 2, the Standard Variable Rate and
                  the other discretionary rates and margins should be
                  increased in order for no Funding 2 Interest Rate Shortfall
                  to arise, but no notification is provided to the Servicer in
                  accordance with Clause 4.3(c) then the Servicer, as agent
                  for and on behalf of the Mortgages Trustee, shall take all
                  steps which are necessary, including publishing any notice
                  which is required in accordance with the Mortgage Terms, to
                  effect the changes in such rates (such changes being those
                  previously notified in relation to Clause 4.3(b)(ii)) on the
                  date(s) specified in the notice referred to in Clause 4.3(b)
                  herein.

            (e)   If the Servicer receives notification from:

                  (i)   the Mortgages Trustee, Funding and/or the Security
                        Trustee in accordance with Clause 4.3(c); and

                  (ii)  the Mortgage Trustee, Funding 2 and/or the Funding 2
                        Security Trustee in accordance with Clause 4.3(d),

                  then the Servicer, as agent for and on behalf of the
                  Mortgages Trustee, shall take all steps which are necessary,
                  including publishing any notice which is required in
                  accordance with the Mortgage Terms, to effect the changes in
                  such rates (such changes being those previously notified in
                  relation to Clause 4.3(b)(iii)) on the date(s) specified in
                  the notice referred to in Clause 4.3(b) herein.

4.4   Existing Borrowers' Re-Fix Rate:

            (a)   The Servicer shall, in relation to each Fixed Rate Mortgage
                  Loan, serve on the Seller as agent for and on behalf of,
                  inter alios, the Mortgages Trustee and the Beneficiaries the
                  notice referred to in Clause 8.6(a) of the Mortgage Sale
                  Agreement sixty (60) days before the expiry of the initial
                  fixed rate period (as defined in Clause 8.6(a) of the
                  Mortgage Sale Agreement) applicable to that Fixed Rate
                  Mortgage Loan.

            (b)   If Clause 8.6(b) of the Mortgage Sale Agreement applies to
                  any Fixed Rate Mortgage Loan, the Servicer shall take all
                  steps which are necessary to perform the obligations of the
                  Seller and exercise the rights under such Clause.

            (c)   The Servicer shall, on behalf of the Seller, whenever Clause
                  8.6(d) of the Mortgage Sale Agreement applies to a Fixed
                  Rate Mortgage Loan, determine (after consultation with the
                  Swap Providers, and any other swap provider the Servicer
                  (acting reasonably) determines appropriate) the rate (and
                  terms) upon which the Existing Borrowers' Re-Fix Rate should
                  be set having regard to the

                                      10
<PAGE>

                  interests of each Swap Provider (except to the extent that
                  the Servicer believes that the interests of any Swap
                  Provider are materially prejudicial to the interests of the
                  Noteholders in respect of the Funding Issuers and/or the
                  Noteholders in respect of the Funding 2 Issuers). The
                  Servicer will give written notice of such determination
                  within one Business Day thereof to the Mortgages Trustee and
                  the Beneficiaries recommending what the Existing Borrowers'
                  Re-Fix Rate should be and the terms at which it should be
                  offered, having regard to the interests of the Swap
                  Providers (except to the extent that the Servicer believes
                  that the interests of any Swap Provider are materially
                  prejudicial to the interests of the Noteholders in respect
                  of the Funding Issuers and/or the Noteholders in respect of
                  the Funding 2 Issuers). The Servicer will solicit quotations
                  on rates from each of (i) the Mortgages Trustee, (ii)
                  Funding, (iii) Funding 2 and (iv) other trustees for
                  re-fixed mortgage loans in relation to other outstanding
                  securitisations of the Seller (if any), and shall notify the
                  Mortgages Trustee and the Beneficiaries as to the higher of
                  (x) any rate provided by any of the parties in (i) through
                  (iv) herein and (y) current rates for re-fixed mortgage
                  loans (not included in any Mortgage Portfolio) in relation
                  to other Mortgage Loans of the Servicer. If the Mortgages
                  Trustee agrees in writing with such recommendation, or
                  (whether or not it has received the Servicer's
                  recommendation) requires alternative rates and/or terms
                  (such agreement or requirement being the "EBRR
                  Determination") the Servicer shall immediately notify the
                  Seller, each Funding Beneficiary and each Issuer of the EBRR
                  Determination, and take all steps which are necessary to
                  enable each Funding Beneficiary and each Issuer to enter
                  into the relevant swap agreement with the applicable Swap
                  Provider(s) (or other swap provider whose appointment would
                  not adversely affect the then current ratings of the Notes)
                  at the rate (and on the terms) required in accordance with
                  the EBRR Determination (the "Required Rate and Terms").
                  Nothing in this Clause 4.4(c) shall prevent the Mortgages
                  Trustee from setting the Existing Borrowers' Re-Fix Rate in
                  accordance with its powers under the Mortgage Sale
                  Agreement.

            (d)   If Clause 8.6 (Purchase of Product Switches, Further
                  Advances and purchases relating to Personal Secured Loans)
                  of the Mortgage Sale Agreement applies to any Fixed Rate
                  Mortgage Loan, and the Seller fails to set the Existing
                  Borrowers' Re-Fix Rate immediately upon being required to do
                  so in accordance with the Required Rate and Terms or
                  otherwise to perform its obligations under Clause 8.6(d) of
                  the Mortgage Sale Agreement, the Servicer as attorney for
                  the Mortgages Trustee and the Beneficiaries shall set the
                  Existing Borrowers' Re-Fix Rate on the Required Rate and
                  Terms.

4.5   Termination of Authority: The Mortgages Trustee and/or the Funding
      Beneficiaries and the Funding Security Trustees may terminate the
      authority of the Servicer under Clauses 4.1 (Determination of Interest
      Rates) and 4.3 (Interest Rate Shortfall) herein to determine either of
      the Mortgage Rate(s) or Existing Borrowers' Re-Fix Rate on or after the
      occurrence of a Termination Event pursuant to Clause 19 (Termination)
      herein, in which case the Mortgages Trustee shall set the Mortgage
      Rate(s) or Existing Borrowers' Re-Fix Rate, as applicable, in accordance
      with this Clause 4.

5.    Administration of Mortgages

                                      11
<PAGE>

5.1   Collection of Payments:

            (a)   For the purposes of collecting amounts due from any Borrower
                  in respect of a Mortgage Loan, where such Borrower makes a
                  Monthly Payment by way of Direct Debit, Northern Rock
                  (whether or not it is the Servicer) will, unless otherwise
                  agreed in writing with the Beneficiaries:

                  (i)   act as collecting agent for the Mortgages Trustee and
                        for the Beneficiaries under the Direct Debiting
                        Scheme;

                  (ii)  comply with the obligations on its part set out in the
                        Bank Account Agreement including, without limitation,
                        the specific provisions relating to the collection of
                        monies set out in Clause 4 of the Bank Account
                        Agreement;

                  (iii) comply in all material respects with the requirements
                        from time to time of the Direct Debiting Scheme; and;

                  (iv)  using its reasonable endeavours, credit any Monthly
                        Payment made by a Borrower by way of Direct Debit to
                        the relevant Collection Account within one (1) London
                        Business Day of receipt (and in any event within three
                        (3) London Business Days of such receipt) into the
                        relevant Collection Account.

            (b)   The Servicer may agree with a Borrower that the Direct
                  Debiting Scheme shall not apply to Monthly Payments to be
                  made by such Borrower, provided that (i) alternative payment
                  arrangements are made which are intended to ensure the
                  timely making of Monthly Payments due from the Borrower to
                  the Mortgages Trustee, and (ii) the change in arrangements
                  was made at the instigation of the Borrower or by the
                  Servicer in accordance with the procedures which would be
                  adopted by a reasonable and prudent mortgage lender.
                  Northern Rock (whether or not it is the Servicer) shall,
                  using its reasonable endeavours, credit Monthly Payments
                  made by a Borrower under an alternative payment arrangement
                  as follows to the relevant Collection Account:

                  (i)   by standing order, by close of business on the second
                        (2nd) London Business Day following the day on which
                        such amount is received or credited by it;

                  (ii)  by payment of cash, transfer payment from another
                        account of the Seller or check where reference to the
                        relevant Borrower is provided or payments made by way
                        of paying-in book, by close of business on the London
                        Business Day which immediately follows the day on
                        which such amount is received or credited by it; and

                  (iii) in the case of any payment by check where a reference
                        to the relevant Borrower is not provided, by close of
                        business on the next London Business Day after
                        notification to it of the identity of the Borrower,

                                      12
<PAGE>

            provided however, that in any event Northern Rock shall credit
            Monthly Payments made by a Borrower under an alternative payment
            arrangement within three (3) London Business Days of such receipt.

            (c)   The Servicer may, notwithstanding the proviso in Clause
                  5.2(b) herein, agree such procedures for the payment by a
                  Borrower of (i) overdue amounts and (ii) amounts payable on
                  redemption of a Mortgage in whole or in part other than
                  through the Direct Debiting Scheme as would be agreed by a
                  reasonable and prudent mortgage lender.

            (d)   Where a Borrower permits a Direct Debit to be made to his
                  bank account, the Servicer will endeavour to procure that
                  such Borrower maintains a valid and effective mandate
                  relating to such Direct Debit in relation to each Monthly
                  Payment due from that Borrower, provided that in any case
                  where a Borrower will not permit a Direct Debit to be made
                  to his bank account the Servicer will endeavour to make
                  alternative arrangements acceptable to a reasonable and
                  prudent mortgage lender so that such Borrower nevertheless
                  pays each Monthly Payment on the due date.

            (e)   In the event that the Bankers Automated Clearing System
                  ceases to operate for any reason Northern Rock will use
                  reasonable endeavours to make alternative arrangements for
                  the use of the back-up systems available to each Account
                  Bank.

5.2   Administration and Enforcement of Mortgages:

            (a)   The Mortgages Trustee as trustee for the Beneficiaries
                  hereby directs the Servicer to administer and service the
                  Mortgage Loans comprised in the Mortgage Portfolio and carry
                  out its specific obligations under this Agreement in
                  accordance with the Administration Procedures.

            (b)   The Servicer will, in relation to any default by a Borrower
                  in connection with a Mortgage Loan or a Mortgage comprised
                  in the Mortgage Portfolio, comply with the Enforcement
                  Procedures or, to the extent that the Enforcement Procedures
                  are not applicable having regard to the nature of the
                  default in question, take such action as is not materially
                  prejudicial to the interests of the Mortgages Trustee (as
                  trustee for the Beneficiaries) and the Beneficiaries under
                  the relevant MIG Policy, provided that:

                  (i)   the Servicer shall only become obliged to comply with
                        the Enforcement Procedures (to the extent applicable)
                        or to take action as aforesaid after it has become
                        aware of the default;

                  (ii)  it is acknowledged by the Beneficiaries that mortgage
                        lenders generally exercise discretion in pursuing
                        their respective enforcement procedures and that the
                        Servicer may exercise such discretion as would a
                        reasonable and prudent mortgage lender in applying the
                        Enforcement Procedures to any particular defaulting
                        Borrower or taking action as aforesaid, provided that
                        in exercising such discretion the interest of Funding
                        and/or Funding 2 in the Mortgage Portfolio is not
                        materially prejudiced; and

                                      13
<PAGE>

                  (iii) in any case where any of the Insurance Policies
                        requires exact compliance with certain enforcement
                        procedures, the Servicer shall procure the prior
                        written consent of the relevant insurance company for
                        any deviation by it from such enforcement procedures.

5.3   Records: The Servicer shall keep and maintain records in relation to the
      Mortgage Portfolio, on a Mortgage Loan by Mortgage Loan basis, for the
      purposes of identifying amounts paid by each Borrower, any amount due
      from a Borrower and the balance from time to time outstanding on a
      Borrower's account and such other records as would be kept by a
      reasonable and prudent mortgage lender. Subject always to the
      restrictions and conditions set forth in Clause 16 (Data Protection),
      the Servicer will provide such information to the Mortgages Trustee
      and/or each Funding Beneficiary and/or each Funding Security Trustee at
      any time upon reasonable notice, subject to the Servicer being
      reasonably capable of providing such information without significant
      additional cost and subject to the provisions of the Data Protection Act
      1998 and other applicable legislation from time to time, and provided
      that no duty of confidence and no industry code of practice will or may
      be breached thereby.

5.4   Trust:

      (a)   If the Servicer, in carrying out its functions as Servicer under
            this Agreement, receives (including in its capacity as agent for
            the Mortgages Trustee as trustee for the Beneficiaries) any money
            whatsoever arising from the Mortgage Loans and their Related
            Security, which money belongs to the Mortgages Trustee (as trustee
            for the Beneficiaries) and is to be paid to the relevant
            Collection Account pursuant to this Agreement or any of the other
            Transaction Documents or otherwise, it will hold such monies on
            trust for the Mortgages Trustee and shall keep such money separate
            from all other monies held by the Servicer and shall, as soon as
            reasonably practicable and in any event within three (3) London
            Business Days of receipt of the same, pay the monies into the
            relevant Collection Account.

      (b)   All other sums received by the Servicer in respect of the Mortgage
            Loans and their Related Security shall be held by the Servicer for
            itself.

5.5   Together Connections Mortgage Loans and Connections Mortgage Loans:

      (a)   The Seller shall, upon request, use its reasonable endeavours to:

            (i)   provide the Mortgages Trustee, each Funding Beneficiary and
                  the Servicer with such information (including, but not
                  limited to documentary information) in its possession; and

            (ii)  do such other acts and things,

            that the Mortgages Trustee, each Funding Beneficiary and the
            Servicer may require in order for such parties to exercise their
            rights and comply with their obligations under the Mortgage
            Conditions relating to the Together Connections Mortgage Loans and
            the Connections Mortgage Loans and under the Transaction Documents
            with respect to the administration of such Mortgage Loans.

                                      14
<PAGE>

      (b)   Each of the Mortgages Trustee, each Funding Beneficiary and the
            Servicer shall, upon request, use their reasonable endeavours to:

            (i)   provide the Seller with such information (including, but not
                  limited to documentary information) in its possession; and

            (ii)  do such other acts and things,

            that the Seller may require in order for the Seller to exercise
            its rights and comply with its obligations under the Together
            Connection Conditions and the Connection Conditions (where such
            rights and obligations are not required to be administered and
            serviced by the Mortgages Trustee, any Funding Beneficiary or the
            Servicer under the Transaction Documents) and in respect of the
            products linked to the Together Connections Mortgage Loans and
            Connections Mortgage Loans.

      (c)   Any notice, letter or other communication:

            (i)   received or given by the Seller under the Together
                  Connection Conditions or the Connection Conditions shall be
                  copied by the Seller to the Servicer; and

            (ii)  received or given by the Mortgages Trustee, any Funding
                  Beneficiary or the Servicer under the Together Connection
                  Conditions or the Connection Conditions shall be copied by
                  such parties to the Seller.

      (d)   The Servicer shall act in accordance with the instructions of the
            Seller in any matter where the powers, rights, obligations or
            commercial interests of the Seller under the Together Connection
            Conditions or the Connection Conditions or with respect to the
            products linked to the Together Connections Mortgage Loan or the
            Connections Mortgage Loan may be affected in a material manner.
            Such matters may include, but not limited to, the following:

            (i)   any request from a Borrower to amend the allocation of the
                  Together Connections Benefit or the Connections Benefit that
                  may accrue to such Borrower under the terms of the relevant
                  Together Connection Conditions or Connection Conditions;

            (ii)  any amendment to the Together Connection Conditions or the
                  Connection Conditions;

            (iii) except where the Servicer is required to act in accordance
                  with Clause 4.3 (Interest Rate Shortfall), the determination
                  or variation of the Connection Interest Rate (provided that
                  such rate shall not at any time be set at a rate which is
                  higher than the equivalent rate offered by the Seller);

            (iv)  any change to the availability or amendment to the
                  eligibility of any product to be linked to a Together
                  Connections Mortgage Loan or a Connections Mortgage Loan;
                  and

                                      15
<PAGE>

            (v)   the termination of the Together Connection Conditions or the
                  Connection Conditions.

            In all other cases where the Servicer, on behalf of the other
            parties hereto is required to exercise its judgment or discretion
            in the application of the Together Connection Conditions or the
            Connection Conditions, the Servicer shall undertake the same in
            consultation with the Seller.

      (e)   The Seller shall not have any right to provide instructions to the
            Servicer in respect of any amendment to the Together Connection
            Conditions or Connection Conditions where such amendment will
            result in a Product Switch in respect of the applicable Together
            Connections Mortgage Loans or Connections Mortgage Loans unless
            the Seller has given confirmation in accordance with the terms of
            the Mortgage Sale Agreement that it has elected to repurchase such
            Together Connections Mortgage Loans or Connections Mortgage Loans.

5.6   Annual Servicer Compliance Statement: On or before March 31 of each
      calendar year, commencing in 2007, the Servicer shall deliver to the
      Mortgages Trustee a statement of compliance with respect to such
      calendar year, which statement will be in the form of an officer's
      certificate stating, as to the authorised signatory thereof, that (i) a
      review of the activities of the Servicer during the immediately
      preceding calendar year (or applicable portion thereof) and of its
      performance under this Agreement during such period has been made under
      such officer's supervision and (ii) to the best of such officer's
      knowledge, based on such review, the Servicer has fulfilled all of its
      obligations under this Agreement in all material respects throughout
      such calendar year (or applicable portion thereof), or, if there has
      been a failure to fulfill any such obligation in any material respect,
      specifying each such failure known to such officer and the nature and
      status thereof.

5.7   Independent Auditors' Annual Servicer Compliance Certificate: On or
      before March 31 of each calendar year, commencing in 2007, the Servicer
      shall cause a registered public accounting firm to furnish to the
      Servicer and the Mortgages Trustee an attestation report on assessment
      of compliance with the Servicing Criteria with respect to the Servicer
      or any affiliate thereof during the immediately preceding calendar year
      delivered by such accountants pursuant to Rule 13(a)-18 or Rule 15(d)-18
      of the Exchange Act and Item 1122 of Regulation AB; provided, however,
      that solely with respect to the fiscal year ending December 31, 2006,
      the Servicer, in its sole and absolute discretion, rather than cause the
      report described above to be furnished, may cause a registered public
      accounting firm to furnish to the Servicer and the Mortgages Trustee:

      (a)   an attestation report on assessment of compliance with the
            Servicing Criteria with respect to the Servicer during the
            six-month period ending December 31, 2006 delivered by such
            accountants pursuant to Rule 13(a)-18 or Rule 15(d)-18 of the
            Exchange Act and Item 1122 of Regulation AB; and

      (b)   a report substantially to the effect that (a) such accounting firm
            has examined certain documents and records of the Servicer
            relating to the servicing of Mortgage Loans under this Agreement
            during the period from January 1, 2006 to and including May 31,
            2006, (b) such examination (i) included such tests

                                      16
<PAGE>

            and auditing procedures as such firm considered necessary in the
            circumstances, and (ii) was conducted in compliance with the
            attestation standards of the American Institute of Certified
            Public Accountants, (c) management of the Servicer has asserted to
            such firm that the Servicer has complied with the minimum
            servicing standards set out in Schedule 5 and (d) in the opinion
            of such firm, such assertion of the Servicer's management is
            fairly stated in all material respects (or, if such assertion of
            the Servicer's management is not correct, stating why such
            assertion is not correct).

5.8   Report on Assessment of Compliance and Attestation:

      (a)   On or before March 31 of each calendar year, commencing in 2007,
            the Servicer shall:

            (i)   deliver to the Mortgages Trustee a report regarding the
                  Servicer's assessment of compliance with the Servicing
                  Criteria during the immediately preceding calendar year, as
                  required under Rules 13a-18 and 15d-18 of the Exchange Act
                  and Item 1122 of Regulation AB. Such report shall be
                  addressed to the Mortgages Trustee and signed by an
                  authorized officer of the Servicer, and shall address each
                  of Servicing Criteria specified on a certification
                  substantially in the form of Schedule 7 delivered to the
                  Mortgages Trustee concurrently with the execution of this
                  Agreement. To the extent any of the Servicing Criteria are
                  not applicable to the Servicer, with respect to asset-backed
                  securities transactions taken as a whole involving the
                  Servicer and that are backed by the same asset type backing
                  the Notes, such report shall include a statement to that
                  effect;

            (ii)  deliver to the Mortgages Trustee a report of a registered
                  public accounting firm reasonably acceptable to the
                  Mortgages Trustee that attests to, and reports on, the
                  assessment of compliance made by the Servicer and delivered
                  pursuant to paragraph (i) above. Such attestation shall be
                  in accordance with Rules 1-02(a)(3) and 2-02(g) of
                  Regulation S-X under the Securities Act and the Exchange
                  Act, including, without limitation that in the event that an
                  overall opinion cannot be expressed, such registered public
                  accounting firm shall state in such report why it was unable
                  to express such an opinion. Such report must be available
                  for general use and not contain restricted use language. To
                  the extent any of the Servicing Criteria are not applicable
                  to the Servicer, with respect to asset-backed securities
                  transactions taken as a whole involving the Servicer and
                  that are backed by the same asset type backing the Notes,
                  such report shall include a statement to that effect;

            (iii) cause each Subcontractor determined by the Servicer pursuant
                  to Clause 5.8(b) to be "participating in the servicing
                  function" within the meaning of Item 1122 of Regulation AB,
                  to deliver to the Mortgages Trustee an assessment of
                  compliance and accountants' attestation as and when provided
                  in paragraphs (a) and (b) of this Clause 5.8; and

                                      17
<PAGE>

            (iv)  deliver or cause to be delivered to any Person that will be
                  responsible for signing the certification (a "Sarbanes
                  Certification") required by Rules 13a-14(d) and 15d-14(d)
                  under the Exchange Act (pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002 and the rules and regulations of
                  the Commission promulgated thereunder (including any
                  interpretations thereof by the Commission's staff) a
                  certification in the form attached hereto as Schedule 6.

            The Servicer acknowledges that any Person identified in clause
            (a)(iv) above may rely on the certification provided by the
            Servicer pursuant to such clause in signing a Sarbanes
            Certification and filing such with the Commission.

      (b)   Each assessment of compliance provided by a Subcontractor pursuant
            to Clause 5.8(a)(iv) shall address each of the Servicing Criteria
            specified on a certification substantially in the form of Schedule
            6 hereto delivered to the Mortgages Trustee concurrently with the
            execution of this Agreement. An assessment of compliance provided
            by a Subcontractor pursuant to Clause 5.8(a)(iv) need not address
            any elements of the Servicing Criteria other than those specified
            by the Servicer pursuant to Clause 5.8(a)(i).

5.9   Use of Subcontractors: The Servicer shall promptly upon request provide
      the Mortgages Trustee a written description (in form and substance
      satisfactory to the Mortgages Trustee) of the role and function of each
      Subcontractor utilized by the Servicer, specifying (i) the identity of
      each such Subcontractor, (ii) which (if any) of such Subcontractors are
      "participating in the servicing function" within the meaning of Item
      1122 of Regulation AB, and (iii) which elements of the Servicing
      Criteria will be addressed in assessments of compliance provided by each
      Subcontractor identified pursuant to clause (ii) of this paragraph. As a
      condition to the utilization of any Subcontractor determined to be
      "participating in the servicing function" within the meaning of Item
      1122 of Regulation AB, the Servicer shall cause any such Subcontractor
      used by the Servicer for the benefit of the Mortgages Trustee to comply
      with the provisions of Clause 5.8 of this Agreement to the same extent
      as if such Subcontractor were the Servicer. The Servicer shall be
      responsible for obtaining from each Subcontractor and delivering to the
      Mortgages Trustee any assessment of compliance and attestation required
      to be delivered by such Subcontractor under Clause 5.8, in each case as
      and when required to be delivered.

5.10  Moody's Portfolio Variation Test: Where it is so required under the
      terms of the Transaction Documents, or where it is otherwise agreed
      between the Seller and Moody's, the Servicer shall use reasonable
      efforts to operate the Moody's Portfolio Variation Test to the Mortgage
      Loans in the Mortgage Portfolio in accordance with instructions provided
      by Moody's to the Servicer from time to time. The Servicer will, as soon
      as practicable after operating the Moody's Portfolio Variation Test,
      send written notification to Moody's of the Moody's Portfolio Variation
      Test Value determined thereunder. The Servicer shall be entitled to rely
      upon the opinion or advice of Moody's in relation to the Moody's
      Portfolio Valuation Test and shall not be responsible for any loss,
      liability, damage or expenses that my be caused by the operation of the
      Moody's Portfolio Variation Test.

6.    No Liability

                                      18
<PAGE>

6.1   No Guarantee of Mortgage Loan: The Servicer shall have no liability for
      any obligation of a Borrower in respect of any Mortgage Loan comprised
      in the Mortgage Portfolio or any Related Security and nothing herein
      shall constitute a guarantee, or similar obligation, by the Servicer of
      any Mortgage Loan, Mortgage or any Borrower.

6.2   No Guarantee to Mortgages Trustee or Beneficiaries: Save as otherwise
      provided in this Agreement, the Servicer shall have no liability for the
      obligations of the Mortgages Trustee or the Beneficiaries under any of
      the Transaction Documents or otherwise and nothing herein shall
      constitute a guarantee, or similar obligation, by the Servicer of the
      Mortgages Trustee or the Beneficiaries in respect of any of them.

7.    New Mortgage Loans

7.1   New Mortgage  Portfolio:  The Mortgage Portfolio may be augmented from
      time to time by the sale and  assignment to the  Mortgages  Trustee on
      any Distribution Date of a New Mortgage Portfolio by the Seller.

7.2   Sale and Assignment subject to Terms: The sale and assignment of each
      New Mortgage Portfolio to the Mortgages Trustee will in all cases be
      subject to the terms set out in the Mortgage Sale Agreement including,
      without limitation, the conditions set out in Clause 4 (Sale and
      Purchase of New Mortgage Portfolios) of the Mortgage Sale Agreement and
      the representations and warranties set out in Clause 8 (Warranties and
      Repurchase by the Seller) of the Mortgage Sale Agreement.

8.    Product Switching and Further Advances

8.1   Acceptance of Application: The Servicer may accept an application for a
      Further Advance or a Product Switch on behalf of the Seller, upon
      receipt of written confirmation from the Seller that the Seller would,
      if invited to do so by the Mortgages Trustee, purchase the relevant
      Mortgage Loan and its Related Security from the Mortgages Trustee.

8.2   Notification: Subject to complying with the terms of Clause 8.1
      (Acceptance of Application) herein, where the Servicer accepts a Product
      Switch or a Further Advance, the Servicer shall then promptly notify the
      Seller and the Mortgages Trustee in writing.

8.3   Existing Borrowers Re-Fix Rate: Notwithstanding Clause 8.1 (Acceptance
      of Application) herein, whenever Clause 8.6 (Existing Borrowers' Re-Fix
      Rate) of the Mortgage Sale Agreement applies to a Fixed Rate Mortgage
      Loan, the Servicer may accept the exercise of an option by a Borrower to
      set the Existing Borrowers' Re-Fix Rate, subject to the terms of Clause
      4.4 (Existing Borrowers' Re-Fix Rate) herein.

8.4   Procedures: Subject to complying with the terms of Clauses 8.1
      (Acceptance of Application) and 8.3 (Existing Borrowers' Re-Fix Rate)
      herein, the Servicer may accept requests from Borrowers for Product
      Switches and Further Advances provided that the Servicer acts in
      accordance with its then procedure which would be acceptable to a
      reasonable and prudent mortgage lender.

9.    Redemption of Mortgages

9.1   Receipt or Discharge: Upon repayment in full of all sums secured by a
      Mortgage

                                      19
<PAGE>

      and/or other Related Security comprised in the Mortgage Portfolio, the
      Servicer shall, and is hereby authorised by the Mortgages Trustee as
      trustee for the Beneficiaries to, execute a receipt or discharge or
      relevant Form DS1 (of the Land Registry) of the Mortgage and any such
      other or further instrument or deed of satisfaction regarding such
      Mortgage and/or the Related Security as it considers to be necessary or
      advisable and to release the relevant Title Deeds (if any) to the person
      or persons entitled thereto.

9.2   Title Deeds: The Servicer undertakes that prior to any actual release by
      it of any relevant Title Deeds it will take reasonable and appropriate
      steps to satisfy itself that the relevant Title Deeds are being released
      to the person or persons entitled thereto.

9.3   Payment of Sums Due: The Servicer shall procure that if, upon completion
      of the Enforcement Procedures, an amount in excess of all sums due from
      the relevant Borrower is recovered or received, the balance, after
      discharge of all sums due from the Borrower, is paid to the person or
      persons next entitled thereto.

10.   Powers of Attorney

10.1  Appointment: The Mortgages Trustee hereby appoints the Servicer as its
      attorney on its behalf, and in its own or the attorney's name, for the
      following purposes:

      (a)   executing all documents necessary for the purpose of discharging a
            Mortgage comprised in the Mortgage Portfolio which has been repaid
            in full and any Related Security or for the sale of a Mortgaged
            Property as Mortgagee;

      (b)   executing all documents necessary for the purpose of releasing a
            Borrower in accordance with Clause 9 (Redemption of Mortgages)
            herein;

      (c)   executing all documents and doing all acts and things which in the
            reasonable opinion of the Servicer are necessary or desirable for
            the efficient provision of the Services hereunder; and

      (d)   exercising its rights, powers and discretion under Mortgage
            Conditions including the right to fix the rate of interest payable
            in respect of the Mortgage Loans or any related rights (but
            subject, in relation to the right to set the interest rate under
            the Base Rate Pledge and the Existing Borrowers' Re-Fix Rate, to
            the limitations, conditions and qualifications set out in the
            Mortgage Sale Agreement and the powers of attorney executed
            pursuant to it),

      provided that, for the avoidance of doubt, these powers of attorney
      shall not authorise the Servicer to sell any of the Mortgage Loans
      and/or their Related Security comprised in the Mortgage Portfolio except
      as specifically authorised in the Transaction Documents. For the
      avoidance of doubt, neither the Mortgages Trustee nor the Funding
      Beneficiaries shall be liable or responsible for the acts of the
      Servicer or any failure by the Servicer to act under or in respect of
      these powers of attorney.

10.2  Appointments Irrevocable: The appointments contained in Clause 10.1
      (Appointment) herein shall be irrevocable unless and until the Mortgages
      Trustee and/or the Funding Beneficiaries and the Funding Security
      Trustees serve notice pursuant to Clause 19 (Termination) herein to
      terminate the Servicer's appointment

                                      20
<PAGE>

      under this Agreement upon which the appointments contained in Clause
      10.1 (Appointment) herein shall be automatically revoked.

11.   Costs and Expenses

      The Mortgages Trustee will on each Distribution Date reimburse, in
      accordance with Clause 10.2(b) of the Mortgages Trust Deed, the Servicer
      for all out-of-pocket costs, expenses and charges (inclusive of any
      amounts in respect of Irrecoverable VAT due thereon) properly incurred
      by the Servicer in the performance of the Services including any such
      costs, expenses or charges not reimbursed to the Servicer on any
      previous Distribution Date and the Servicer shall supply the Mortgages
      Trustee with an appropriate VAT invoice issued by the person making the
      supply.

12.   Information

12.1  Maintenance of Records:

      (a)   The Servicer shall keep the Mortgage Loan Files relating to the
            Mortgage Portfolio in safe custody and shall take appropriate
            technical and organisational measures against the unauthorised or
            unlawful processing of personal data and against accidental loss
            or destruction of, or damage to, personal data. The Servicer shall
            maintain in an adequate form such records as are necessary to
            enforce each Mortgage comprised in the Mortgage Portfolio and,
            where relevant, any other Related Security. The Servicer shall
            keep the Mortgage Loan Files in relation to the Mortgage Portfolio
            in such a way that they can be distinguished from information held
            by the Servicer for its own behalf as mortgagee or heritable
            creditor or for other third persons.

      (b)   A duplicate of any computer records held by the Servicer which
            contains information relating to the Mortgage Loans and the
            Related Security shall be lodged by the Servicer on a quarterly
            basis in a location separate from that in which the original
            computer records are stored and in an environment conducive to the
            safe storage of electronic media and which allows the information
            to be stored in an incorruptible form, such records to be held to
            the order of the Mortgages Trustee and to be replaced by a revised
            duplicate as and when the original records are revised. The
            Servicer shall keep the Mortgages Trustee informed of the location
            of the Mortgage Loan Files and duplicate computer records.

12.2  Use of information technology  systems:

      (a)   The Servicer will use all reasonable endeavours to negotiate with
            the relevant parties so that any intellectual property rights not
            owned by it but used by it in connection with the performance of
            its obligations under this Agreement and in particular all
            software programmes used in connection with the Mortgage Loans and
            the Related Security therefor and their administration are
            licensed or sub-licensed to the Mortgages Trustee as trustee for
            the Beneficiaries so as to permit the Mortgages Trustee as trustee
            for the Beneficiaries to use such intellectual property rights
            only in connection with the administration of the Mortgage Loans
            free of charge for so long as any of the Mortgage Loans are
            outstanding. For the avoidance of doubt, the Servicer shall not be
            in breach of

                                      21
<PAGE>

            its obligations under this Agreement if such rights and/or
            software programmes are not so licensed or sub-licensed to the
            Mortgages Trustee as trustee for the Beneficiaries at any time
            after it has ceased to be the Servicer:

      (b)   If this Agreement is terminated, then for a period of six months
            following such termination (or such shorter period as may be
            necessary to allow the administration and servicing of the
            Mortgage Loans to be transferred to another person) the Servicer
            shall use reasonable endeavours to assist the Mortgages Trustee
            and/or the Beneficiaries and/or any substitute or successor
            Servicer to:

            (i)   establish and implement a computer system for administering
                  and servicing the Mortgage Loans; and

            (ii)  load the data held by the Servicer in relation to Borrowers
                  and the Mortgage Loans on to such computer system,

            and, prior to (i) and (ii) having taken place, the Servicer will
            provide all necessary access and assistance to the Mortgages
            Trustee and/or the Beneficiaries and/or the substitute Servicer in
            respect of its own intellectual property rights in relation to the
            administration and servicing of the Mortgage Loans.

      (c)   Subject always to the restrictions and conditions set forth in
            Clause 16, upon termination of the appointment of the Servicer
            under this Agreement, the Servicer shall forthwith deliver to the
            Mortgages Trustee and/or the Beneficiaries and/or the substitute
            Servicer all computer and data records in its possession or under
            its control relating to the affairs of or belonging to the
            Mortgages Trustee and the Beneficiaries and/or relating to the
            Mortgage Loans and the Related Security in a form agreeable to
            each of the Servicer, the Mortgages Trustee and/or the
            Beneficiaries and/or the substitute Servicer which accords with
            the standard practice of the electronic data processing industry
            at the time the event occurs.

      (d)   The Servicer covenants that it will take no action, nor omit to
            take any action, the effect or likely effect of such action or
            omission will be to terminate any existing licence agreement in
            relation to any such intellectual property rights, provided that a
            licence agreement may be terminated if it is replaced by a
            substitute arrangement under which the intellectual property
            rights, including rights to computer software, are such that the
            services resulting therefrom are equivalent to the previous
            arrangement.

12.3  Access to Books and Records: Subject to all applicable laws, and subject
      always to the restrictions and conditions set forth in Clause 16 (Data
      Protection), the Servicer shall permit the Mortgages Trustee (and its
      auditors), each Funding Beneficiary (and their auditors), each Funding
      Security Trustee and any other person nominated by any of the
      Beneficiaries or the Funding Security Trustees (to whom the Servicer has
      no reasonable objection) upon reasonable notice during normal office
      hours to have access, or procure that such person or persons are granted
      access, to all books of record and account (including, for the avoidance
      of doubt, the Title Deeds and Mortgage Loan Files) relating to the
      administration and servicing of the Mortgage

                                      22
<PAGE>

      Loans and the Related Security comprised in the Mortgage Portfolio and
      related matters in accordance with this Agreement.

12.4  Information Covenants:

      (a)   The Servicer shall, within ten (10) Business Days following each
            Monthly Payment Date, provide the Mortgages Trustee, the
            Beneficiaries, the Rating Agencies, the Lead Manager, Bloomberg
            L.P. (unless otherwise prohibited by law) and any other party as
            the Mortgages Trustee may direct with a monthly report in, or
            substantially in, the form set out in Schedule 2 (Form of
            Investors' Monthly Report) hereto (or such other form reasonably
            requested by the Mortgages Trustee and approved by the
            Beneficiaries and the Rating Agencies) and shall assist the Cash
            Manager in the production of reports substantially in the forms
            set out in Schedule 3 of the Cash Management Agreement.

      (b)   The Servicer shall notify the Rating Agencies in writing of the
            details of (i) any material amendment to the Transaction
            Documents, (ii) any proposed material change in the valuation
            procedures or policies applied or to be applied in relation to
            Mortgaged Properties by it in connection with its mortgage
            business (details of which change may be included in a report
            provided under subparagraph (a) above) and (iii) any other
            information relating to its mortgage business and financial
            condition or the Mortgage Portfolio as the Rating Agencies may
            reasonably request in connection with the ratings of the Notes of
            any Issuer and other matters contemplated by the Transaction,
            provided that such request does not adversely interfere with the
            Servicer's day to day provision of the Services under the other
            terms of this Agreement.

      (c)   The Servicer shall, at the request of Funding and the Security
            Trustee or Funding 2 and the Funding 2 Security Trustee (where the
            Servicer is the Seller) and at the request of any of the
            Beneficiaries (where the Servicer is no longer the Seller),
            furnish Funding and the Security Trustee and/or Funding 2 and the
            Funding 2 Security Trustee and/or the Beneficiaries (as
            appropriate) and the Rating Agencies with such other information
            relating to its business and financial condition as it may be
            reasonable for Funding and the Security Trustee and/or Funding 2
            and the Funding 2 Security Trustee and/or the Beneficiaries (as
            appropriate) to request in connection with the ratings of the
            Notes of any Issuer and other matters contemplated by the
            Transaction, provided that Funding and the Security Trustee or
            Funding 2 and the Funding 2 Security Trustee or the Beneficiaries
            (as is appropriate) shall not make such a request more than once
            every three months unless, in the belief of Funding and the
            Security Trustee or Funding 2 and the Funding 2 Security Trustee
            or the Beneficiaries (as is appropriate), an Intercompany Loan
            Event of Default or a Termination Event pursuant to Clause 19
            (Termination) herein shall have occurred and is continuing or may
            reasonably be expected to occur.

13.   Remuneration

13.1  Administration Fee: The Mortgages Trustee shall pay to the Servicer for
      its Services hereunder an administration fee (the "Administration Fee")
      (inclusive of VAT) which:

                                      23
<PAGE>

      (a)   shall be calculated in relation to each Trust Calculation Period
            on the basis of the number of days elapsed and a 365 day year (or,
            in the case of a Trust Calculation Period ending in a leap year, a
            366 day year) at the Administration Fee Rate, inclusive of VAT, on
            the aggregate amount of the Funding Share and the Funding 2 Share
            of the Trust Property as at close of business of such Trust
            Calculation Period; and

      (b)   shall be paid to the Servicer on each Distribution Date in the
            manner contemplated by and in accordance with the provisions of
            Clause 10 (Distribution of Revenue Receipts) of the Mortgages
            Trust Deed.

13.2  Substitute or Successor Servicer: If a substitute or successor Servicer
      shall be appointed under this Agreement with respect to any of the
      Mortgage Loans, the Mortgages Trustee shall set the Administration Fee
      Rate with such substitute or successor Servicer at the time such
      substitute or successor Servicer enters into an administration
      agreement.

14.   Insurances

14.1  Administration: The Servicer will administer the arrangements for
      insurance to which the Mortgages Trustee is a party or in which either
      the Seller or the Mortgages Trustee has an interest and which relate to
      the Mortgage Loans and the Mortgages comprised in the Mortgage Portfolio
      or the business of the Mortgages Trustee.

14.2  Action of Servicer: The Servicer shall not knowingly take or omit to
      take any action which would:

      (a)   result in the avoidance or termination of any of the Insurance
            Policies in relation to any Mortgage Loans and Mortgages to which
            any Insurance Policy applies;

      (b)   reduce the amount payable on any claim made on behalf of the
            Mortgages Trustee (as trustee for the Beneficiaries) under any
            Insurance Policy; or

      (c)   invalidate any Insurance Policy.

14.3  Submission of Claims: The Servicer shall prepare and submit any claim
      under the Insurance Policies in accordance with the requirements of the
      relevant Insurance Policy and otherwise with the usual procedures
      undertaken by a reasonable and prudent mortgage lender on behalf of the
      Mortgages Trustee as trustee for the Beneficiaries and shall comply with
      the other requirements of the insurer under the relevant Insurance
      Policy.

14.4  Proceeds: The Servicer shall use its reasonable endeavours to credit to
      the relevant Collection Account all proceeds received from any claim
      made under each Insurance Policy in relation to any Mortgage Loan by
      close of business on the London Business Day which immediately follows
      the day on which such amounts are received or credited by the Servicer
      (and in any event within three (3) London Business Days of such receipt)
      and which is applied either in whole or in part in repayment of a
      Mortgage Loan.

                                      24
<PAGE>

14.5  MIG Policies:

      (a)   Without prejudice to Clause 3 (The Administration Services)
            herein, the Mortgages Trustee as trustee for the Beneficiaries
            acknowledges that the Servicer may settle or compromise claims on
            a Mortgage Loan by Mortgage Loan basis in respect of any MIG
            Policy in a manner consistent with its normal practice in respect
            of mortgage indemnity polices, provided that the Servicer shall
            not, without the prior written consent of the Mortgages Trustee,
            settle any claims or initiate any legal proceedings or other legal
            process in respect of a group of class of mortgages or in respect
            of the MIG Policies as a whole and provided further that each such
            MIG Policy and all proceeds thereof remain as Trust Property.

            If the Enforcement Procedures require the Servicer to make a claim
            under the relevant MIG Policy and the Servicer has failed to make
            such a claim, then the Beneficiaries may direct the Mortgages
            Trustee on their behalf to direct the Servicer to make a claim or,
            in default thereof by the Servicer, the Beneficiaries may direct
            the Mortgages Trustee to make a claim itself under such policy and
            the Servicer shall, within ten (10) London Business Days of
            receiving a written request from the Mortgages Trustee (as trustee
            for the Beneficiaries), provide the Mortgages Trustee with such
            information as the Mortgages Trustee may require to enable it to
            make a claim under the relevant MIG Policy.

      (b)   Without prejudice to the rights of the Servicer under Clause
            14.5(b) herein, the Servicer shall, in administering and servicing
            the Mortgage Loans, ensure that the cover under any MIG Policy
            relating to any Mortgage is not adversely affected.

14.6  Buildings Policies:

      (a)   Upon receipt of notice that any Borrower whose Mortgage Loan is
            secured by a mortgage of a leasehold (or, in Scotland, a standard
            security of a long leasehold) Mortgaged Property has failed to
            make a payment when due of any sums due under the relevant lease
            in respect of the insurance of the property, the Servicer may
            debit such Borrower's account with the relevant amount which shall
            then be paid to the relevant landlord.

      (b)   If the Servicer becomes aware that a Borrower has failed to pay
            premiums due under any Buildings Policy, the Servicer shall take
            such action as would a reasonable and prudent mortgage lender with
            a view to ensuring that the relevant Mortgaged Property continues
            to be insured in accordance with the applicable Mortgage Terms or
            the Alternative Insurance Requirements.

14.7  Life Policies:

      (a)   The Servicer shall use its reasonable endeavours to ensure that
            upon maturity of a Life Policy or on the death of a Borrower, if
            earlier, all sums which it is agreed between the Seller and the
            relevant Borrower are due to be paid under the Life Policy are
            paid by the relevant insurance company in repayment of

                                      25
<PAGE>

            the Mortgage for which such Life Policy is collateral security and
            credited to the relevant Collection Account.

      (b)   If so requested by a Borrower the Servicer may, on behalf of the
            Beneficiaries, exercise its discretion as a reasonable and prudent
            mortgage lender to agree to the release of a Life Policy from the
            relevant legal or equitable charge granted by the related Borrower
            in favour of the Seller.

15.   Title Deeds

15.1  Custody: To the extent not held in electronic form by the Land Registry,
      the Servicer shall keep the Title Deeds relating to the Mortgage
      Portfolio in safe custody and shall not without the prior written
      consent of the Mortgages Trustee and the Beneficiaries part with
      possession, custody or control of them otherwise than to a Subcontractor
      or delegate appointed pursuant to Clause 3.2 (Sub-Contracts) herein or
      to a solicitor, licensed or qualified conveyancer or authorised
      practitioner, subject to the usual undertaking to hold them to the order
      of the Seller (who in turn will hold them to the order of the Mortgages
      Trustee (as trustee for the Beneficiaries)) or to the Land Registry or
      the Registers of Scotland or, upon repayment in full of the relevant
      Mortgage Loan, to the order of the Borrower.

15.2  Identification: Subject to Clause 15.1 (Custody), the Title Deeds
      relating to the Mortgage Portfolio shall be kept in a manner such that a
      computer record is maintained of their location and they are
      identifiable and retrievable by reference to an account number and pool
      identifier and identifiable and distinguishable from the title deeds
      relating to other properties and mortgages in respect of which the
      Servicer is mortgagee or heritable creditor or Servicer.

15.3  Access: Subject to Clause 15.1 (Custody), the Servicer shall provide
      access, or procure that access is provided to, the Title Deeds relating
      to the Mortgage Portfolio to the Mortgages Trustee, the Beneficiaries
      and their respective agents at all reasonable times and upon reasonable
      notice. The Servicer acknowledges that the Title Deeds and Mortgage Loan
      Files relating to the Mortgage Portfolio in its possession, custody or
      control will be held to the order of the Mortgages Trustee (as trustee
      for the Beneficiaries) and that it has, in its capacity as Servicer, no
      beneficial interest therein and the Servicer (in its capacity as such
      but not in its capacity as a Beneficiary) irrevocably waives any rights
      or any Security Interest which it might have therein or to which it
      might at any time be entitled.

15.4  Delivery upon Termination: Subject to Clause 15.1 (Custody), the
      Servicer shall, forthwith on the termination of the appointment of the
      Servicer pursuant to Clause 19 (Termination) herein, deliver the Title
      Deeds and Mortgage Loan Files to or to the order of the Mortgages
      Trustee or to such person as the Mortgages Trustee elects as a
      substitute Servicer in accordance with the terms of this Agreement upon
      written request by the Mortgages Trustee made at any time on or after
      notice of, or on or after, termination of the appointment of the
      Servicer pursuant to Clause 19 (Termination) herein.

16.   Data Protection

                                      26
<PAGE>

      The Servicer represents that as at the date hereof the Servicer has and
      hereafter it will maintain on behalf of itself and on behalf of the
      Mortgages Trustee (as trustee for the Beneficiaries) all appropriate
      registrations, licences and authorities (if any) required under the Data
      Protection Act 1998 to enable each of them to perform their respective
      obligations under this Agreement. In addition to the foregoing and
      notwithstanding any of the other provisions of this Agreement, each of
      the Servicer and the Mortgages Trustee hereby agree and covenant as
      follows:

      (a)   that only non-"personal data" (as described in the Data Protection
            Act 1998) may be transferred by the Servicer to the Mortgages
            Trustee or any other entity located in Jersey (unless Jersey is
            declared an "approved state" by the European Commission, in which
            case the Servicer may transfer such personal data to the Mortgages
            Trustee in Jersey);

      (b)   that, to the extent that circumstances enable the Mortgages
            Trustee to exercise its right to demand that the Servicer transfer
            inter alia personal data to the Mortgages Trustee, the Servicer
            shall only transfer such personal data to an agent of the
            Mortgages Trustee that is located in the United Kingdom and
            maintains all appropriate registrations, licences and authorities
            (if any) required under the Data Protection Act 1998 (unless
            Jersey is declared an "approved state" by the European Commission,
            in which case the Servicer may transfer such personal data to the
            Mortgages Trustee in Jersey);

      (c)   that, to the extent that circumstances enable the Mortgages
            Trustee to exercise its right to demand that the Servicer transfer
            inter alia personal data to the Mortgages Trustee, the Servicer
            notify each Borrower that the Mortgages Trustee is a "data
            controller" (as defined in the Data Protection Act 1998) and
            provide each such Borrower with the address of the Mortgages
            Trustee;

      (d)   that the Servicer and the Mortgages Trustee will only use any data
            in relation to the Mortgage Loans and the related Borrowers for
            the purposes of administering and/or managing the Mortgage
            Portfolio, and will not sell such data to any third party or allow
            any third party to use such data other than in compliance with the
            conditions stated in this Clause 16 and for the sole purpose of
            administering and/or managing the Mortgage Portfolio;

      (e)   that the Mortgages Trustee will comply with the provisions of the
            Data Protection (Jersey) Law 1987 (as amended) and (so long as the
            provisions of the Data Protection Act 1998 do not conflict with
            the provisions of the Data Protection (Jersey) Law 1987) with the
            provisions of the Data Protection Act 1998 (as amended);

      (f)   that, upon the request of a Borrower, the Servicer will inform
            such Borrower that both the Servicer and the Mortgages Trustee are
            "data controllers" as described in the Data Protection Act 1998;
            and

      (g)   that both the Servicer and the Mortgages Trustee shall maintain a
            written record of their reasons for applying the Data Protection
            Order 2000 (as set forth under the Conditions under paragraph 3 of
            Part II of Schedule I of such Order).

                                      27
<PAGE>

17.   Covenants and Representations and Warranties of Servicer

17.1  Covenants: The Servicer hereby covenants with and undertakes to the
      Mortgages Trustee, each Beneficiary and each Funding Security Trustee
      that, without prejudice to any of its specific obligations hereunder, it
      will:

      (a)   administer and service the Mortgage Loans and their Related
            Security as if the same had not been sold and assigned to the
            Mortgages Trustee but had remained on the books of the Seller;

      (b)   provide the Services in such manner and with the same level of
            skill, care and diligence as would a reasonable and prudent
            mortgage lender;

      (c)   comply with any reasonable directions, orders and instructions
            which the Mortgages Trustee or the Beneficiaries may from time to
            time give to it in accordance with the provisions of this
            Agreement and, in the event of any conflict, those of the
            Mortgages Trustee shall prevail;

      (d)   keep in force all licences, approvals, authorisations, permissions
            and consents which may be necessary in connection with the
            performance of the Services and prepare and submit all necessary
            applications and requests for any further approval, authorisation,
            consent or licence required in connection with the performance of
            the Services and in particular any necessary registrations under
            the Data Protection Act 1998;

      (e)   not knowingly fail to comply with any legal requirements in the
            performance of the Services;

      (f)   make all payments required to be made by it pursuant to this
            Agreement on the due date for payment thereof in pounds sterling
            (or as otherwise required under the Transaction Documents) in
            immediately available funds for value on such day without set-off
            (including, without limitation, any fees owed to it) or
            counterclaim, but subject to any deductions required by law;

      (g)   not without the prior written consent of the Mortgages Trustee
            amend or terminate any of the Transaction Documents save in
            accordance with their terms;

      (h)   whilst the Seller is the Servicer, forthwith upon becoming aware
            of any event which may reasonably give rise to an obligation of
            the Seller to repurchase any Mortgage Loan pursuant to Clause 8
            (Warranties and Repurchase by the Seller) of the Mortgage Sale
            Agreement, notify the Mortgages Trustee and the Beneficiaries in
            writing of such event;

17.2  Covenants to Survive: The covenants of the Servicer in Clause 17.1
      (Covenants) herein shall remain in force until this Agreement is
      terminated but without prejudice to any right or remedy of the Mortgages
      Trustee and/or the Seller and/or each Funding Beneficiary arising from
      breach of any such covenant prior to the date of termination of this
      Agreement.

17.3  Representations and Warranties: The Servicer hereby makes the
      representations and warranties to the Mortgages Trustee, each
      Beneficiary and each Funding Security

                                      28
<PAGE>

      Trustee that are specified on Schedule 3 (Servicer Representations and
      Warranties) hereto.

18.   Services Non-exclusive

      Nothing in this Agreement shall prevent the Servicer from rendering or
      performing services similar to those provided for in this Agreement to
      or for itself or other persons or from carrying on business similar to
      or in competition with the business of the Mortgages Trustee and the
      Beneficiaries.

19.   Termination

19.1  Termination   Event:   If  any  of  the   following   events  (each  a
      "Termination Event") shall occur:

      (a)   default is made by the Servicer in the payment on the due date of
            any payment due and payable by it under this Agreement and such
            default continues unremedied for a period of five London Business
            Days after the Servicer becoming aware of such default;

      (b)   default is made by the Servicer in the performance or observance
            of any of its other covenants and material obligations under this
            Agreement or any of the other Transaction Documents, where:

            (i)   the Security Trustee, having been informed thereof in
                  accordance with Clause 19.5 (Notification of Termination
                  Event), is of the opinion that such default is materially
                  prejudicial to the interests of the holders of the Notes
                  issued by the Funding Issuers and then outstanding; and/or

            (ii)  the Funding 2 Security Trustee, having been informed thereof
                  in accordance with Clause 19.5 (Notification of Termination
                  Event), is of the opinion that such default is materially
                  prejudicial to the interests of the holders of the Notes
                  issued by the Funding 2 Issuers and then outstanding,

            and such default continues unremedied for a period of twenty (20)
            days after the Servicer becoming aware of such default, provided
            however that where the relevant default occurs as a result of a
            default by any person to whom the Servicer has sub-contracted or
            delegated part of its obligations hereunder, such default shall
            not constitute a Termination Event if within such twenty (20) day
            period the Servicer replaces the relevant Subcontractor or
            delegate with an entity capable of remedying such default or
            alternatively indemnifies the Mortgages Trustee and the
            Beneficiaries against the consequences of such default;

      (c)   the Servicer at any time fails to obtain or maintain the necessary
            license, permission or regulatory approval required by any UK
            mortgage or credit regulatory regime which would be required in
            order to enable it to continue administering and servicing the
            Mortgage Loans; or

      (d)   the Servicer becomes subject to an Insolvency Event,

                                      29
<PAGE>

      then the Mortgages Trustee and/or Funding and the Security Trustee
      and/or Funding 2 and the Funding 2 Security Trustee may at once or at
      any time thereafter while such default continues, by notice in writing
      to the Servicer, terminate its appointment as Servicer under this
      Agreement with effect from a date (not earlier than the date of the
      notice) specified in such notice. Upon termination of the appointment of
      the Servicer, the Funding Security Trustees shall use their reasonable
      endeavours (subject to the terms of the Funding Beneficiary Deed) to
      appoint a substitute Servicer that satisfies the conditions set forth in
      Clause 19.2(c), (d) and (e), provided that in the event the Funding
      Security Trustees have not, having used reasonable endeavours (subject
      to the terms of the Funding Beneficiary Deed) appointed a substitute
      Servicer, they shall have no liability to any person and,
      notwithstanding any other provision of the Transaction Documents, shall
      not themselves be required to perform any duties of the Servicer.

19.2  Resignation: The Servicer may resign under this Agreement at any time
      following the expiry of not less than 12 months' notice of resignation
      given by the Servicer to the Mortgages Trustee and the Beneficiaries
      provided that:

      (a)   the Mortgages Trustee and the Beneficiaries consent in writing to
            such termination;

      (b)   a substitute Servicer is appointed by the Mortgages Trustee, the
            Funding Beneficiaries and the Funding Security Trustees (and in
            the event of failure to agree, by the Funding Security Trustees),
            such appointment to be effective not later than the date of such
            termination (and the Servicer shall notify the Rating Agencies in
            writing of the identity of such substitute Servicer);

      (c)   if required to be qualified to act as Servicer under the FSMA,
            such substitute Servicer is so qualified;

      (d)   if possible, such substitute Servicer has experience in
            administering and servicing mortgage loans secured on residential
            property in England, Wales and Scotland and, in any event (in so
            far as is required by any applicable laws and regulations) has all
            authorisations, permissions and licences for the purposes of
            administering and servicing mortgages of residential property in
            England, Wales and Scotland;

      (e)   such substitute Servicer enters into an agreement on substantially
            the same terms as the relevant provisions of this Agreement and
            the Servicer shall not be released from its obligations under the
            relevant provisions of this Agreement until such substitute
            Servicer has entered into such new agreement; and

      (f)   the then current ratings (if any) of the Notes of any Issuer are
            not reduced, withdrawn or qualified as a result thereof, unless
            otherwise agreed by an Extraordinary Resolution (as defined in the
            applicable Note Trust Deed) of the holders of the relevant class
            or classes of Notes.

19.3  Termination of Authority: On and after resignation by, or termination of
      the appointment of, the Servicer under this Agreement pursuant to this
      Clause 19, all authority and power of the Servicer under this Agreement
      and each other Transaction

                                      30
<PAGE>

      Document to which it is a party shall be terminated and be of no further
      effect and the Servicer shall not thereafter hold itself out in any way
      as the agent of the Mortgages Trustee and/or the Beneficiaries pursuant
      to this Agreement and each other Transaction Document to which it is a
      party.

19.4  Delivery of Files: Upon resignation by, or termination of the
      appointment of, the Servicer under this Agreement pursuant to this
      Clause 19, the Servicer shall:

      (a)   forthwith deliver to (and in the meantime hold on trust for, and
            to the order of) the Mortgages Trustee or as it shall direct the
            Mortgage Loan Files, the Title Deeds (if any), all books of
            account, papers, records, registers, correspondence and documents
            in its possession or under its control relating to the affairs of,
            or belonging to, the Mortgages Trustee (as trustee for the
            Beneficiaries) and the Mortgages in the Mortgage Portfolio and any
            other Related Security, (if practicable, on the date of receipt)
            any monies then held by the Servicer on behalf of the Mortgages
            Trustee and any other assets of the Mortgages Trustee as trustee
            for the Beneficiaries;

      (b)   take such further action as the Mortgages Trustee, the Funding
            Beneficiaries and the Funding Security Trustees may reasonably
            direct at the expense of the Beneficiaries (including in relation
            to the appointment of a substitute Servicer) provided that neither
            the Mortgages Trustee nor each Funding Security Trustee shall be
            required to take or direct to be taken such further action unless
            it has been indemnified to its satisfaction;

      (c)   provide all relevant information contained on computer records in
            the form of magnetic tape, together with details of the layout of
            the files encoded on such magnetic tapes; and

      (d)   co-operate and consult with and assist the Mortgages Trustee, each
            Funding Beneficiary, each Funding Security Trustee and their
            nominees (which shall, for the avoidance of doubt, include any new
            Servicer appointed by any of them) for the purposes of explaining
            the file layouts and the format of the magnetic tapes generally
            containing such computer records on the computer system of the
            Mortgages Trustee or such nominee.

19.5  Notification of Termination Event: The Servicer shall notify the
      Mortgages Trustee, each Funding Security Trustee and each Beneficiary as
      soon as reasonably practicable but in any event within five (5) days of
      becoming aware of any Termination Event or any event which with the
      giving of notice or lapse of time or certification would constitute the
      same. Such notification shall specify which event in Clause 19
      (Termination) occurred and was the cause of such Termination Event (or
      any event which with the giving of notice or lapse of time or
      certification would constitute a Termination Event), a description of
      the details of such Termination Event, and a reference to the provision
      in this Agreement or the other Transaction Documents which the Servicer
      has breached.

19.6  No Prejudice: Termination of this Agreement or the appointment of the
      Servicer under this Agreement shall be without prejudice to the
      liabilities of the Mortgages Trustee as trustee for the Beneficiaries to
      the Servicer or vice versa incurred before the date of such termination.
      The Servicer shall have no right of set-off or any lien in

                                      31
<PAGE>

      respect of such amounts against amounts held by it on behalf of the
      Mortgages Trustee.

19.7  Automatic Termination: This Agreement shall terminate at such time as
      the Mortgages Trustee has no further interest in any of the Mortgage
      Loans or the Mortgages which have been comprised in the Mortgage
      Portfolio.

19.8  Further Compensation: Upon resignation by, or termination of the
      appointment of, the Servicer under the provisions of this Clause 19, the
      Servicer shall be entitled to receive all fees and other monies accrued
      up to the date of resignation or termination, as the case may be, but
      shall not be entitled to any other or further compensation. Such monies
      so receivable by the Servicer shall be paid by the Mortgages Trustee on
      the dates on which they would otherwise have fallen due hereunder. For
      the avoidance of doubt, such resignation or termination shall not affect
      the Servicer's rights to receive payment of all amounts (if any) due to
      it from the Mortgages Trustee other than under this Agreement.

19.9  Co-operation: Prior to termination of this Agreement, the Servicer, the
      Seller, the Mortgages Trustee and the Funding Beneficiaries shall
      co-operate to obtain the agreement of the Borrowers to a new bank
      mandate permitting the Mortgages Trustee to operate the Direct Debiting
      Scheme.

19.10 Survival of Terms: Any provision of this Agreement which is stated to
      continue after termination of the Agreement shall remain in full force
      and effect notwithstanding termination.

19.11 No Supervision: Neither Funding Security Trustee shall be obliged to
      monitor or supervise the performance by any substitute Servicer of its
      duties hereunder or in relation to the other Transaction Documents, nor
      shall the Funding Security Trustees be responsible or liable for any act
      or omission of such substitute Servicer or for any loss caused thereby.

20.   Further Assurances

20.1  Co-operation: The parties hereto agree that they will co-operate fully
      to do all such further acts and things and execute any further documents
      as may be necessary or desirable to give full effect to the arrangements
      contemplated by this Agreement.

20.2  Powers of Attorney: Without prejudice to the generality of Clause 20.1
      (Co-Operation) herein, the Mortgages Trustee as trustee for the
      Beneficiaries shall upon request by the Servicer forthwith give to the
      Servicer such further powers of attorney or other written
      authorisations, mandates or instruments as are necessary to enable the
      Servicer to perform the Services.

20.3  Notice to Rating Agencies: In the event that there is any change in the
      identity of the Mortgages Trustee or an additional Mortgages Trustee is
      appointed, the remaining Mortgages Trustee and/or the retiring Mortgages
      Trustee, as the case may be, shall execute such documents with any other
      parties to this Agreement and take such actions as such new Mortgages
      Trustee may reasonably require for the purposes of vesting in such new
      Mortgages Trustee the rights of the Mortgages Trustee under this
      Agreement and releasing the retiring Mortgages Trustee from further
      obligations

                                      32
<PAGE>

      thereunder and while any Note remains outstanding shall give notice
      thereof to the Rating Agencies.

20.4  No Obligations: Nothing herein contained shall impose any obligation or
      liability on the Mortgages Trustee to assume or perform any of the
      obligations of the Servicer hereunder or render it liable for any breach
      hereof.

21.   Miscellaneous

21.1  Insufficient Funds: Subject to Clause 21.2 (Reduction of Fees) herein,
      in the event that the funds available to the Mortgages Trustee on any
      Distribution Date are not sufficient to satisfy in full the aggregate
      amount payable to the Servicer by the Mortgages Trustee on such
      Distribution Date then the amount payable to the Servicer on such
      Distribution Date shall be reduced by the amount of the shortfall and
      such shortfall shall (subject always to the provisions of this Clause
      21) be payable on the immediately succeeding Distribution Date.

21.2  Reduction of Fees: In the event that:

      (a)   after redemption in full of the Intercompany Loans; or

      (b)   after service of an Intercompany Loan Enforcement Notice and
            payment of all other prior claims,

      the remaining sums available to the Mortgages Trustee or remaining
      proceeds of enforcement are insufficient to satisfy in full the
      outstanding fees or other claims of the Servicer, such fees shall be
      reduced by the amount of the deficiency.

21.3  Set-Off:  Each of the  Seller  and the  Servicer  agrees  that it will
      not:

      (a)   set off or purport to set off any amount which the Mortgages
            Trustee, each Funding Beneficiary or each Issuer is or will become
            obliged to pay to it under any of the Transaction Documents
            against any amount from time to time standing to the credit of or
            to be credited to any Collection Account, any Mortgages Trustee
            Bank Account, any Funding Bank Account, any Funding 2 Bank
            Account, any Issuer Transaction Account or in any other account
            prior to transfer to any Collection Account, any Mortgages Trustee
            Bank Account, any Funding Bank Account, any Funding 2 Bank Account
            or any Issuer Transaction Account, as appropriate; or

      (b)   make or exercise any claims or demands, any rights of counterclaim
            or any other equities against or withhold payment of any and all
            sums of money which may at any time and from time to time be
            standing to the credit of any Collection Account, any Mortgages
            Trustee Bank Account, any Funding Bank Account, any Funding 2 Bank
            Account or any Issuer Transaction Account.

21.4  No Petition: The Servicer agrees that for so long as any Notes of any
      Issuer are outstanding it will not petition nor commence proceedings for
      the administration or winding up of the Mortgages Trustee, any Funding
      Beneficiary or any Issuer nor participate in any ex parte proceedings
      with regard thereto.

21.5  Limited Recourse: In relation to all sums due and payable by the
      Mortgages Trustee

                                      33
<PAGE>

      to the Servicer, the Servicer agrees that it shall have recourse only to
      sums paid to or received by (or on behalf of) the Mortgages Trustee
      pursuant to the provisions of the Mortgage Sale Agreement, the other
      Transaction Documents and in relation to the Mortgages.

21.6  No Prejudice: For the avoidance of doubt, no Beneficiary shall be liable
      to pay any amounts due under Clauses 11 (Costs and Expenses) or 13
      (Remuneration) herein without prejudice to the obligations of the
      Mortgages Trustee in respect of such amounts.

21.7 Termination: Notwithstanding any other provisions of this Agreement:

      (a)   all obligations to, and rights of, Funding under or in connection
            with this Agreement (other than its obligations under Clause 22
            (Confidentiality) herein) shall automatically terminate upon the
            discharge in full of all amounts owing by it under any Funding
            Intercompany Loan Agreement, provided that this shall be without
            prejudice to any claims in respect of such obligations and rights
            arising on or prior to such date; and

      (b)   all obligations to, and rights of, Funding 2 under or in
            connection with this Agreement (other than its obligations under
            Clause 22 (Confidentiality) herein) shall automatically terminate
            upon the discharge in full of all amounts owing by it under any
            Funding 2 Intercompany Loan Agreement provided that this shall be
            without prejudice to any claims in respect of such obligations and
            rights arising on or prior to such date.

22.   Confidentiality

      From the date of this Agreement and notwithstanding its termination,
      each of the Mortgages Trustee and the Beneficiaries shall use its best
      endeavours not to disclose to any person whatsoever any information
      relating to the business, finances or other matters of a confidential
      nature of any other party hereto of which it may by virtue of being
      party to the Transaction Documents have become possessed and shall use
      all reasonable endeavours to prevent any such disclosure as aforesaid,
      provided however that the provisions of this Clause 22 shall not apply:

      (a)   to any information already known to the Mortgages Trustee or the
            Beneficiaries otherwise than as a result of entering into any of
            the Transaction Documents;

      (b)   to any information subsequently received by the Mortgages Trustee
            or the Beneficiaries which it would otherwise be free to disclose;

      (c)   to any information which is or becomes public knowledge otherwise
            than as a result of the conduct of the Mortgages Trustee or the
            Beneficiaries;

      (d)   to the extent that any of the Mortgages Trustee or the
            Beneficiaries is required to disclose the same pursuant to any
            Transaction Document, pursuant to any law or order of any court or
            pursuant to any direction, request or requirement (whether or not
            having the force of law) of any central bank or any

                                      34
<PAGE>

            governmental or other authority (including, without limitation,
            any official bank examiners or regulators);

      (e)   to the extent that any of the Mortgages Trustee or the
            Beneficiaries needs to disclose the same for determining the
            existence of, or declaring, an Intercompany Loan Event of Default
            or a Termination Event, the protection or enforcement of any of
            its rights under any of the Transaction Documents or in connection
            herewith or therewith or for the purpose of discharging, in such
            manner as it thinks fit, its duties under or in connection with
            such agreements in each case to such persons as require to be
            informed of such information for such purposes; or

      (f)   in relation to any information disclosed to the professional
            advisers of the Mortgages Trustee or the Beneficiaries or (in
            connection with the review of current ratings of the Notes of any
            Issuer or with a prospective rating of any debt to be issued by an
            Issuer) to any credit rating agency or any prospective new
            Servicer or Mortgages Trustee.

23.   No Partnership

      It is hereby acknowledged and agreed by the parties that nothing in this
      Agreement shall be construed as giving rise to any partnership between
      any of the parties.

24.   Assignment

24.1  Consent: The Mortgages Trustee may not assign or transfer any of its
      rights and obligations under this Agreement without the prior written
      consent of each of the Beneficiaries.

24.2  Agreement: The Servicer may not assign or transfer any of its rights or
      obligations under this Agreement (a) without the prior written consent
      of the Mortgages Trustee (as trustee for the Beneficiaries) and each of
      the Beneficiaries and (b) other than to a person who agrees to be bound
      by the provisions contained in Clause 5 of the Funding Deed of Charge
      and Clause 5 of the Funding 2 Deed of Charge as if such person had been
      named as an original party thereto in place of Northern Rock but without
      prejudice to their obligations under such Clause.

24.3  Assignment of Rights to Security Trustee: The Servicer acknowledges that
      Funding has assigned its rights under this Agreement to the Security
      Trustee pursuant to the Funding Deed of Charge and acknowledges that
      pursuant to the terms of the Funding Deed of Charge, Funding has, inter
      alia, authorised the Security Trustee, following the Funding Security
      becoming enforceable, to exercise, or refrain from exercising, all of
      Funding's rights, powers, authorities, discretions and remedies under or
      in respect of the Funding Transaction Documents, including this
      Agreement, in such manner as in the Security Trustee's absolute
      discretion it shall think fit.

24.4  Assignment of Rights to Funding 2 Security Trustee: The Servicer
      acknowledges that Funding 2 has assigned its rights under this Agreement
      to the Funding 2 Security Trustee pursuant to the Funding 2 Deed of
      Charge and acknowledges that pursuant to the terms of the Funding 2 Deed
      of Charge, Funding 2 has, inter alia, authorised the Funding 2 Security
      Trustee, following the Funding 2 Security becoming enforceable,

                                      35
<PAGE>

      to exercise, or refrain from exercising, all of Funding 2's rights,
      powers, authorities, discretions and remedies under or in respect of the
      Funding 2 Transaction Documents, including this Agreement, in such
      manner as in the Funding 2 Security Trustee's absolute discretion it
      shall think fit.

25.   Security Trustee; Authorised Third Party

25.1  Vesting of Rights: If there is any change in the identity of the
      security trustee in accordance with the Funding Deed of Charge, the
      Servicer, the Seller, each Funding Beneficiary, the Funding 2 Security
      Trustee and the Mortgages Trustee shall execute such documents and take
      such action as the successor security trustee and the outgoing security
      trustee may reasonably require for the purpose of vesting in the
      successor security trustee the rights and obligations of the outgoing
      security trustee under this Agreement and releasing the outgoing
      security trustee from its future obligations under this Agreement. If
      there is any change in the identity of the security trustee in
      accordance with the Funding 2 Deed of Charge, the Servicer, the Seller,
      each Funding Beneficiary, the Security Trustee and the Mortgages Trustee
      shall execute such documents and take such action as the successor
      security trustee and the outgoing security trustee may reasonably
      require for the purpose of vesting in the successor security trustee the
      rights and obligations of the outgoing security trustee under this
      Agreement and releasing the outgoing security trustee from its future
      obligations under this Agreement.

25.2  No Assumption: It is hereby acknowledged and agreed that by its
      execution of this Agreement, each Funding Security Trustee shall not
      assume or have any of the obligations or liabilities of the Servicer,
      the Seller, each Funding Beneficiary, the Mortgages Trustee or the other
      Funding Security Trustee under this Agreement. Furthermore, any liberty
      or power which may be exercised or any determination which may be made
      hereunder by each Funding Security Trustee may, subject to the terms of
      the Funding Beneficiary Deed:

      (a)   in relation to the Security Trustee, be exercised or made in the
            Security Trustee's absolute discretion without any obligation to
            give reasons therefor, but in any event must be exercised or made
            in accordance with the provisions of the Funding Deed of Charge
            and Schedule 4 (Authorised Third Party) hereto;

      (b)   in relation to the Funding 2 Security Trustee, be exercised or
            made in the Funding 2 Security Trustee's absolute discretion
            without any obligation to give reasons therefor, but in any event
            must be exercised or made in accordance with the provisions of the
            Funding 2 Deed of Charge and Schedule 4 (Authorised Third Party)
            hereto.

25.3  Delegation: Each Funding Security Trustee may delegate the performance
      of all or any of its powers and obligations under all or any of the
      Operating Agreements pursuant to the terms of Schedule 4 (Authorised
      Third Party) of this Agreement and subject always to the provisions of
      the Funding Deed of Charge or the Funding 2 Deed of Charge (as
      applicable) and the Funding Beneficiary Deed.

                                      36
<PAGE>

26.   New Intercompany Loan Agreements

      On each occasion that a Funding Beneficiary enters into an Intercompany
      Loan Agreement or is the recipient of a loan advance under an
      Intercompany Loan Agreement, then the Servicer, the Seller, each Funding
      Beneficiary, each Funding Security Trustee and the Mortgages Trustee
      shall execute such documents and take such action as may be necessary or
      required by the Rating Agencies for the purpose of including the
      relevant Issuer, any Swap Provider, any Start-up Loan Provider and any
      other person who has executed an Accession Undertaking or any such
      Intercompany Loan Agreement in the Transaction Documents or to take
      account of such Intercompany Loan or loan advance.

27.   Non Petition Covenant; Limited Recourse

27.1  Non Petition Covenant: Each of the parties hereto (except for, in the
      case of Funding, the Security Trustee and, in the case of Funding 2, the
      Funding 2 Security Trustee) hereby agrees that it shall not institute
      against any Funding Beneficiary or the Mortgages Trustee any winding-up,
      administration, insolvency or similar proceedings so long as any sum is
      outstanding under any Intercompany Loan Agreement of any Issuer or for
      two years plus one day since the last day on which any such sum was
      outstanding.

27.2  Limited Recourse:  Each of the parties hereto agrees that:

      (a)   in relation to the Mortgages Trustee, any amount payable by the
            Mortgages Trustee to any other party to this Agreement under this
            Agreement not being an amount payable out of the Trust Property in
            accordance with the terms of the Mortgages Trust Deed shall only
            be payable to the extent that on that date the Mortgages Trustee
            has sufficient funds to pay such amount out of fees paid to it
            under the Mortgages Trust Deed; and

      (b)   in relation to Funding:

            (i)   only the Security Trustee may enforce the security created
                  in favour of the Security Trustee under the Funding Deed of
                  Charge in accordance with the provisions thereof;

            (ii)  notwithstanding any other provision of this Agreement or any
                  other Transaction Document, no sum due or owing to any party
                  to this Agreement from or by Funding under this Agreement
                  shall be payable by Funding except to the extent that
                  Funding has sufficient funds available or (following
                  enforcement of the Funding Security) the Security Trustee
                  has realised sufficient funds from the Funding Security to
                  pay such sum subject to and in accordance with the relevant
                  Funding Priority of Payments and provided that all
                  liabilities of Funding required to be paid in priority
                  thereto or pari passu therewith pursuant to such Funding
                  Priority of Payments have been paid, discharged and/or
                  otherwise provided for in full; and

            (iii) it shall not take any steps for the purpose of recovering
                  any amount payable by Funding or enforcing any rights
                  arising out of this

                                      37
<PAGE>

                  Agreement against Funding otherwise than in accordance with
                  the Funding Deed of Charge.

      (c)   in relation to Funding 2:

            (i)   only the Funding 2 Security Trustee may enforce the security
                  created in favour of the Funding 2 Security Trustee under
                  the Funding 2 Deed of Charge in accordance with the
                  provisions thereof;

            (ii)  notwithstanding any other provision of this Agreement or any
                  other Transaction Document, no sum due or owing to any party
                  to this Agreement from or by Funding 2 under this Agreement
                  shall be payable by Funding 2 except to the extent that
                  Funding 2 has sufficient funds available or (following
                  enforcement of the Funding 2 Security) the Funding 2
                  Security Trustee has realised sufficient funds from the
                  Funding 2 Security to pay such sum subject to and in
                  accordance with the relevant Funding 2 Priority of Payments
                  and provided that all liabilities of Funding 2 required to
                  be paid in priority thereto or pari passu therewith pursuant
                  to such Funding 2 Priority of Payments have been paid,
                  discharged and/or otherwise provided for in full; and

            (iii) it shall not take any steps for the purpose of recovering
                  any amount payable by Funding 2 or enforcing any rights
                  arising out of this Agreement against Funding 2 otherwise
                  than in accordance with the Funding 2 Deed of Charge.

27.3  Corporate Obligations: To the extent permitted by law, no recourse under
      any obligation, covenant, or agreement of any person contained in this
      Agreement shall be had against any shareholder, officer or director of
      such person as such, by the enforcement of any assessment or by any
      legal proceeding, by virtue of any statute or otherwise; it being
      expressly agreed and understood that this Agreement is a corporate
      obligation of each person expressed to be a party hereto and no personal
      liability shall attach to or be incurred by the shareholders, officers,
      agents or directors of such person as such, or any of them, under or by
      reason of any of the obligations, covenants or agreements of such person
      contained in this Agreement, or implied therefrom, and that any and all
      personal liability for breaches by such person of any of such
      obligations, covenants or agreements, either under any applicable law or
      by statute or constitution, of every such shareholder, officer, agent or
      director is hereby expressly waived by each person expressed to be a
      party hereto as a condition of and consideration for the execution of
      this Agreement.

28.   Amendments and Waiver

28.1  Entire Agreement: This Agreement sets out the entire agreement and
      understanding between the parties with respect to the subject matter of
      this Agreement superseding all prior oral or written understandings
      other than the other Transaction Documents.

28.2  Amendments and Waiver: No amendment or waiver of any provision of this
      Agreement nor consent to any departure by any of the parties therefrom
      shall in any event be effective unless the same shall be in writing and
      signed by each of the parties hereto. In the case of a waiver or
      consent, such waiver or consent shall be effective

                                      38
<PAGE>

      only in the specific instance and as against the party or parties giving
      it for the specific purpose for which it is given.

28.3  Rights Cumulative: The respective rights of each of the parties to this
      Agreement are cumulative and may be exercised as often as they consider
      appropriate. No failure on the part of any party to exercise, and no
      delay in exercising, any right hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such right
      preclude any other or further exercise thereof or the exercise of any
      other right. The remedies in this Agreement are cumulative and not
      exclusive of any remedies provided by law.

28.4  Variation or Waiver: No variation or waiver of this Agreement shall be
      made if the same would adversely affect the then current ratings of any
      of the Notes.

29.   Notices

      Any notices or other communication or document to be given or delivered
      pursuant to this Agreement to any of the parties hereto shall be
      sufficiently served if sent by prepaid first class post, by hand or by
      facsimile transmission and shall be deemed to be given (in the case of
      facsimile transmission) when despatched or (where delivered by hand) on
      the day of delivery if delivered before 17.00 hours on a London Business
      Day or on the next London Business Day if delivered thereafter or (in
      the case of first class post) when it would be received in the ordinary
      course of the post and shall be sent:

      (a)   in the case of the Servicer and the Seller, to Northern Rock PLC,
            Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
            (facsimile number: 0191 213 2203) for the attention of the Group
            Secretary;

      (b)   in the case of the Mortgages Trustee, to Granite Finance Trustees
            Limited, c/o 22 Grenville Street, St. Helier, Jersey JE4 8PX,
            Channel Islands (facsimile number 01534 609 333) for the attention
            of the Company Secretary;

      (c)   in the case of Funding, to Granite Finance Funding Limited, 69
            Park Lane, Croydon CR8 1TQ (facsimile number 020 8409 8911) for
            the attention of the Company Secretary;

      (d)   in the case of the Security Trustee, to The Bank of New York, 48th
            Floor, One Canada Square, London E14 5AL (facsimile number 020
            7964 6399) for the attention of Corporate Trust (Global Structured
            Finance);

      (e)   in the case of Funding 2, to Granite Finance Funding 2 Limited at
            Fifth Floor, 100 Wood Street, London, EC2V 7EX (facsimile number
            020 7606 0643) for the attention of the Company Secretary (with a
            copy to the Seller in accordance with (a) above);

      (f)   in the case of the Funding 2 Security Trustee, to The Bank of New
            York, 48th Floor, One Canada Square, London, E14 5AL (facsimile
            number 020 7964 6399) for the attention of Global Structured
            Finance (Corporate Trust);

                                      39
<PAGE>

      (g)   in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2
            Eldon Street, London EC2M 7UA (facsimile number 020 7417 6262) for
            the attention of European Structured Finance Surveillance;

      (h)   in the case of Moody's, to Moody's Investors Services, Inc., at
            1st Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB
            (facsimile number 020 7772 5400) for the attention of RMBS
            Monitoring;

      (i)   in the case of S&P, to Standard & Poor's Ratings Services, a
            division of The McGraw-Hill Companies, Inc., at Garden House, 18
            Finsbury Circus, London EC2M 7NJ (facsimile number 020 7826 3598)
            for the attention of Andre Vollmann;

      or to such other address or facsimile number or for the attention of
      such other person or entity as may from time to time be notified by any
      party or by any Rating Agency to the others by written notice in
      accordance with the provisions of this Clause 29. All notices served
      under this Agreement shall be simultaneously copied to each Funding
      Security Trustee by the person serving the same.

30.   Third Party Rights

      A person who is not a party to this Agreement may not enforce any of its
      terms under the Contracts (Rights of Third Parties) Act 1999, but this
      shall not affect any right or remedy of a third party which exists or is
      available apart from that Act.

31.   Execution in Counterparts; Severability

31.1  Counterparts: This Agreement may be executed in any number of
      counterparts (manually or by facsimile) and by different parties hereto
      in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which when taken together shall constitute
      one and the same instrument.

31.2  Severability: Where any provision in or obligation under this Agreement
      shall be invalid, illegal or unenforceable in any jurisdiction, the
      validity, legality and enforceability of the remaining provisions or
      obligations under this Agreement, or of such provision or obligation in
      any other jurisdiction, shall not be affected or impaired thereby.

32.   Governing Law and Submission to Jurisdiction

32.1  Governing  Law: This  Agreement is governed by, and shall be construed
      in accordance with, English law.

32.2  Submission to Jurisdiction: Each of the parties hereto irrevocably
      agrees that the courts of England shall have jurisdiction to hear and
      determine any suit, action or proceeding, and to settle any disputes,
      which may arise out of or in connection with this Agreement and, for
      such purposes, irrevocably submits to the jurisdiction of such courts.

                                      40
<PAGE>

33.   Process Agent

      The Mortgages Trustee irrevocably and unconditionally appoints Mourant &
      Co. Capital (SPV) Limited at 69 Park Lane, Croydon, CR9 1TQ or otherwise
      at its registered office for the time being as its agent for service of
      process in England in respect of any proceedings in respect of this
      Agreement and undertakes that in the event of Mourant & Co. Capital
      (SPV) Limited ceasing so to act it will appoint another person with a
      registered office in London as its agent for service of process.

34.   Appropriate Forum

      Each of the parties hereto irrevocably waives any objection which it
      might now or hereafter have to the courts of England being nominated as
      the forum to hear and determine any Proceedings and to settle any
      disputes, and agrees not to claim that any such court is not a
      convenient or appropriate forum.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed as a
deed the day and year first before written.

                                      41
<PAGE>

                                  SCHEDULE 1

                                 THE SERVICES

In addition to the Services set out in the body of the Administration
Agreement, the Servicer shall:

(a)   keep records (written or computerised) and books of account for the
      Mortgages Trustee in relation to the Mortgage Loans comprised in the
      Mortgage Portfolio;

(b)   keep records for all taxation purposes and VAT;

(c)   notify relevant Borrowers of any change in their Monthly Payments;

(d)   assist the auditors of the Mortgages Trustee and each Funding
      Beneficiary and provide information to them upon reasonable request;

(e)   provide a redemption statement to a Borrower or any person acting on the
      Borrower's behalf, in each case upon written request or otherwise at the
      discretion of the Servicer;

(f)   notify relevant Borrowers of any other matter or thing which the
      applicable Mortgage Conditions or Offer Conditions require them to be
      notified of in the manner and at the time required by the relevant
      Mortgage Terms;

(g)   subject to the provisions of this Agreement (including, without
      limitation, Clause 5.2 herein (Administration and Enforcement of
      Mortgages)) take all reasonable steps to recover all sums due to the
      Mortgages Trustee including without limitation by the institution of
      proceedings and/or the enforcement of any Mortgage Loan comprised in the
      Mortgage Portfolio or any New Mortgage Portfolio or any Related
      Security;

(h)   take all other action and do all other things which it would be
      reasonable to expect a reasonable and prudent mortgage lender to do in
      administering and servicing its mortgages;

(i)   keep a Mortgage Account for each Mortgage Loan which shall record all
      proceeds received in respect of that Mortgage Loan and all amounts
      debited to such Mortgage Account;

(j)   at its discretion, prepare and send on request an annual statement to
      Borrowers in relation to each calendar year in the agreed form; and

(k)   assist the Cash Manager in the preparation of the reports substantially
      in the form set out in the Cash Management Agreement.

                                      42
<PAGE>

                                  SCHEDULE 2

                       FORM OF INVESTORS' MONTHLY REPORT

                          [On file with the Servicer]

                                      43
<PAGE>

                                    SCHEDULE 3

                    SERVICER REPRESENTATIONS AND WARRANTIES

The Servicer makes the following representations and warranties to the
Mortgages Trustee, each Funding Beneficiary and each Funding Security Trustee:

1.    Status: It is a public limited company duly incorporated, validly
      existing and registered under the laws of the jurisdiction in which it
      is incorporated, capable of being sued in its own right and not subject
      to any immunity from any proceedings, and it has the power to own its
      property and assets and to carry on its business as it is being
      conducted.

2.    Powers and authority: It has the power to enter into, perform and
      deliver, and has taken all necessary corporate and other action to
      authorise the execution, delivery and performance by it of each of the
      Transaction Documents to which it is or will be a party, and each such
      Transaction Document has been duly executed and delivered by it.

3.    Legal validity: Each Transaction Document to which it is or will be a
      party constitutes or when executed in accordance with its terms will
      constitute its legal, valid and binding obligation.

4.    Non-conflict: The execution by it of each of the Transaction Documents
      to which it is a party and the exercise by it of its rights and the
      performance of its obligations under such Transaction Documents will
      not:

      (a)   result in the existence or imposition of, nor oblige it to create,
            any Security Interest in favour of any person over all or any of
            its present or future revenues or assets;

      (b)   conflict with any document which is binding upon it or any of its
            assets;

      (c)   conflict with its constitutional documents; or

      (d)   conflict with any law, regulation or official or judicial order of
            any government, governmental body or court, domestic or foreign,
            having jurisdiction over it.

5.    No litigation: It is not a party to any material litigation, arbitration
      or administrative proceedings and, to its knowledge, no material
      litigation, arbitration or administrative proceedings are pending or
      threatened against it.

6.    Consents and Licences: All governmental consents, licences and other
      approvals, permissions and authorisations required by it (in its
      capacity as Servicer) in connection with the entry into, performance,
      validity and enforceability of, and the transactions contemplated by,
      the Transaction Documents have been obtained or effected (as
      appropriate) and are in full force and effect.

7.    Solvency: No Insolvency Event has occurred in respect of the Servicer,
      and the Servicer is not insolvent.

                                      44
<PAGE>

8.    Financial Statements: The most recent financial statements of the
      Servicer:

      (a)   were prepared in accordance with accounting principles generally
            accepted in England and Wales consistently applied;

      (b)   disclose all liabilities (contingent or otherwise) and all
            unrealised and or anticipated losses of the Servicer; and

      (c)   save as disclosed therein, give a true and fair view of the
            financial condition and operations of the Servicer during the
            relevant financial year.

9.    No Adverse Change: Since the date as of which the most recent financial
      statements of the Servicer were stated to be prepared, there has been:

      (a)   no significant change in the financial position of the Servicer;
            and

      (b)   no material adverse change in the financial position or prospects
            of the Servicer.

10.   Ranking of Claims

       Under the laws of England and Wales in force as at the date of making
      this representation, claims against the Servicer under the Transaction
      Documents will rank at least pari passu with the claims of all its other
      unsecured and unsubordinated creditors, save those whose claims are
      preferred solely by any bankruptcy, liquidation or other similar laws of
      general application.

11. Information in Prospectus and Reg S Prospectus:

      (a)   All information in the Prospectus and the Reg S Prospectus with
            regard to the Servicer, its business and its experience in
            administering and servicing mortgage loans (including its arrears
            and repossession experience) are true and accurate in all material
            respects and not misleading in any material respect.

      (b)   Any opinions, predictions and intentions expressed in the
            Prospectus and/or the Reg S Prospectus on the part of the Servicer
            are honestly held and not misleading in any material respect.

      (c)   Each of the Prospectus and the Reg S Prospectus does not omit to
            state any material fact necessary to make such information,
            opinions, predictions or intentions not misleading in any material
            respect.

      (d)   The Servicer has made all proper inquiries to ascertain and to
            verify the foregoing.

                                      45
<PAGE>

                                  SCHEDULE 4

                            AUTHORISED THIRD PARTY

1.    Agreement to Allow Delegation

1.1.  The Seller and the Servicer agree (subject to the other provisions of
      this Schedule, including paragraph 2 (Appointment and Payment) and
      subject to the Funding Deed of Charge or the Funding 2 Deed of Charge,
      as applicable) that a Funding Security Trustee may appoint or facilitate
      the appointment of an Authorised Third Party to implement, administer
      and carry out the duties and powers of such Funding Security Trustee:

      (a)   under the Seller's Power of Attorney;

      (b)   in connection with and following a Completion Event; and

      (c)   in connection with and following a Termination Event,

      (together the "Back-up Functions").

1.2.  Each of the Seller and the Servicer shall authorise such Authorised
      Third Party on their behalf and in their name or otherwise to sign or
      execute or make any alteration or addition or deletion in or to any
      agreements or documents or certificates or instructions or notices which
      they are entitled or required to give, receive, implement, transact or
      become a party to in relation to the Back-up Functions or for doing any
      other act or thing required to be done by them under or in connection
      with the Back-up Functions and otherwise generally to sign, seal and
      deliver any agreement, assurance, document, certificate, instruction or
      act which may be required by such Authorised Third Party acting in
      connection with the Back-up Functions.

2.    Appointment and Payment

      The appointment of such Authorised Third Party shall be on the terms and
      conditions as negotiated between the relevant Funding Security Trustee,
      the Seller and/or the Servicer (as the case may be) and such Authorised
      Third Party. The fees, costs and expenses payable to such Authorised
      Third Party shall be considered as part of the additional remuneration
      and expenses of the relevant Funding Security Trustee and therefore
      shall be payable in the manner contemplated, in the case of the Security
      Trustee, by and in accordance with Clause 18 of the Funding Deed of
      Charge from funds that the Security Trustee receives in accordance with
      the Funding Priority of Payments and in the case of the Funding 2
      Security Trustee, by and in accordance with Clause 17 of the Funding 2
      Deed of Charge from funds that the Funding 2 Security Trustee receives
      in accordance with the Funding 2 Priority of Payments.

3.    Delegation

3.1.  On the appointment by a Funding Security Trustee of one or more persons
      to act as an Authorised Third Party in respect of its Back-up Functions
      (on any terms other than the power to appoint a delegate), references in
      the Operating Agreements to the

                                      46
<PAGE>

      "Security Trustee" or the "Funding 2 Security Trustee" (as applicable)
      shall be construed accordingly and, unless the context does not permit,
      include such Authorised Third Party. The appointment of such Authorised
      Third Party may be revoked by the Funding Security Trustee at any time.

3.2.  In the event that a Funding Security Trustee has not, having used such
      reasonable endeavours, appointed such Authorised Third Party, such
      Funding Security Trustee shall have no liability to any person and,
      notwithstanding any other provision of the Operating Agreements, shall
      not itself be required to perform any Back-up Functions or any other
      duties of the Seller or the Servicer either during the period it is
      seeking to appoint an Authorised Third Party or thereafter.

3.3.  As conditions precedent to the appointment of such Authorised Third
      Party, the arrangements to be entered into between such Authorised Third
      Party and the Seller or Servicer (as the case may be) shall provide that
      (1) the Authorised Third Party shall make timely transfer of information
      to the Seller or Servicer (as appropriate); and (2) each Funding
      Security Trustee shall provide any Authorised Third Party appointed by
      it hereunder with a copy of the Operating Agreements and, where the
      Security Trustee is the Funding Security Trustee, the Funding Deed of
      Charge or, where the Funding 2 Security Trustee is the Funding Security
      Trustee, the Funding 2 Deed of Charge, and shall request such Authorised
      Third Party to confirm in writing to the Seller, the Servicer and the
      relevant Funding Security Trustee that it has read and understood the
      terms of this Agreement and the other Operating Agreements.

4.    Ratification

      Each of the Seller and the Servicer shall, upon the written request of a
      Funding Security Trustee or its Authorised Third Party, ratify and
      confirm all documents, deeds, certificates, instructions, acts and
      things which such Funding Security Trustee or such Authorised Third
      Party shall execute or do in the exercise of any of the powers
      conferred, or purported to be conferred, on him by this Agreement and
      the other Operating Agreements. The terms of appointment of such
      Authorised Third Party shall oblige the Authorised Third Party to
      provide information concerning its activities on a regular basis and on
      request to:

      (a)   the Seller;

      (b)   the Servicer;

      (c)   where the Security Trustee is the Funding Security Trustee,
            Funding and the Security Trustee; and

      (d)   where the Funding 2 Security Trustee is the Funding Security
            Trustee, Funding 2 and the Funding 2 Security Trustee.

5.    Limitations on the Responsibility of the Funding Security Trustee

      A Funding Security Trustee shall not be obliged to monitor or supervise
      the performance by any Authorised Third Party appointed by it hereunder
      of its duties hereunder or in relation to the Operating Agreements and
      shall not be responsible or liable for any act or omission of such
      Authorised Third Party or for any loss caused

                                      47
<PAGE>

      thereby, provided that if any party to a Transaction Document notifies a
      Funding Security Trustee that an Authorised Third Party appointed by it
      is implementing, administering or carrying out the duties and powers of
      that Funding Security Trustee in breach of the terms and conditions of
      the relevant Operating Agreement pursuant to which such duties and
      powers are to be performed, that Funding Security Trustee shall use its
      reasonable endeavours to appoint or facilitate the appointment of a
      substitute Authorised Third Party to implement, administer and carry out
      such duties and powers. The terms of appointment of an Authorised Third
      Party and the appointing Funding Security Trustee's responsibilities in
      relation thereto as set out in this Schedule 4 shall apply to the
      appointment of a substitute Authorised Third Party. Nothing in this
      Schedule constitutes a Funding Security Trustee in its role as specified
      in this schedule as trustee or fiduciary for any person. Each Funding
      Security Trustee shall assume, until it receives notice thereof pursuant
      to the relevant Operating Agreement, that no Back-up Trigger Event has
      occurred and until such time that it receives such notification and is
      first indemnified and/or secured to its satisfaction, is not entitled to
      take any action in respect of the Back-up Functions under the Operating
      Agreements.

6.    Exoneration

6.1.  Without limiting paragraph 6.2 below, each Funding Security Trustee
      shall not be liable to any Person for any action taken or not taken by
      it or its Authorised Third Party under or in connection with the
      Operating Agreements, other than in respect of any loss, liability,
      claim, expense or damage suffered or incurred by such Person in respect
      of the gross negligence or wilful default of the Funding Security
      Trustee or such Authorised Third Party in carrying out its functions
      under the relevant Operating Agreement.

6.2.  No Person may take any proceedings against any officer, employee or
      agent of a Funding Security Trustee in respect of any claim it might
      have against such Funding Security Trustee in respect of any act or
      omission of any kind by their officer, employee or agent.

7.    Controlling Beneficiary Deed

      The rights and powers in respect of a Funding Security Trustee which
      have been delegated to an Authorised Third Party hereunder shall be
      delegated subject to the terms of the Funding Beneficiary Deed.

                                      48
<PAGE>

                                  SCHEDULE 5

                          MINIMUM SERVICING STANDARDS

The following list sets forth (i) certain of the Services provided for in the
body of the Administration Agreement and (ii) certain of the functions
required of the Cash Manager under the terms of the Cash Management Agreement,
which together are known as the "minimum servicing standards" for purposes of
Clause 5.7(b) (Independent Auditors' Annual Servicer Compliance Certificate)
of the Administration Agreement.

1.    (Maintain records) keep and maintain records in relation to the Mortgage
      Portfolio on a Mortgage Loan by Mortgage Loan basis for the purposes of
      identifying amounts paid by each Borrower, any amount due from a
      Borrower and the balance from time to time outstanding on a Borrower's
      account (5.3).

2.    (Collections) using reasonable endeavours credit all monthly payments
      made by a Borrower to the relevant Collection Account within three (3)
      London Business Days of receipt (5.1).

3.    (Qualifications and compliance of laws) maintain all licences,
      approvals, authorisations and consents necessary in connection with the
      Servicer's performance of its obligations under the Administration
      Agreement and not knowingly to fail to comply with any legal
      requirements in the performance of those obligations. (17.1(d) and (e)).

4.    (Enforcement) in relation to any default by a Borrower in relation to a
      Mortgage Loan or a Mortgage, enforce the terms of such Mortgage Loan or
      Mortgage in accordance with the Enforcement Procedures and as otherwise
      provided in the Administration Agreement (5.2).

5.    (Insurance)  (a)  administer the  arrangements  for insurance in which
      the Mortgages  Trustee or the Seller has an interest  (14.1);  (b) not
      knowingly  take or omit  to take  any  action  that  could  result  in
      avoidance,  termination  or  invalidity  of any  Insurance  Policy  in
      relation  to any  Mortgage  Loans and  Mortgages  or reduce the amount
      payable on any claim  made on behalf of the  Mortgage  Trustees  under
      any Insurance  Policy  (14.2);  (c) prepare and submit any claim under
      the  Insurance  Policies in accordance  with their terms  (14.3);  and
      (d) use  reasonable  endeavours to credit all proceeds  received under
      any Insurance Policy to the relevant  Collection  Account within three
      (3) London Business Days of such receipt (14.4).

6.    (Determination   of  interest   rates)  (a)   determine  the  Standard
      Variable  Rate  chargeable  to  Borrowers  from  time to time  and the
      Existing  Borrowers'  Re-Fix Rate in  accordance  with  section 4.1 of
      the  Administration  Agreement;  and  (b)  take  all  steps  necessary
      pursuant to the relevant  Mortgage  Conditions  or  applicable  law to
      bring such change in the Standard  Variable  Rate to the  attention of
      the  relevant  borrowers  and  notify  details  of such  change to the
      Mortgages  Trustee,  the  Security  Trustee,  the  Funding 2  Security
      Trustee and the Beneficiaries (4.2).

                                      49
<PAGE>

7.    (Provision of information) provide such information from its records in
      relation to the Mortgage Loans to the Mortgages Trustee, Funding,
      Funding 2, the Security Trustee or the Funding 2 Security Trustee at any
      time upon reasonable notice, subject to the conditions set forth in the
      Administration Agreement (5.3).

8.    (Access to books and records) permit the Mortgages  Trustee,  Funding,
      Funding 2 (and their  auditors),  the Security Trustee and the Funding
      2  Security   Trustee   and  any  other   person   nominated   by  the
      beneficiaries  (to  whom the  Servicer  has no  reasonable  objection)
      upon  reasonable  notice  during normal office hours to have access to
      all books of record and account  (including  Title Deeds and  Mortgage
      Loan Files) relating to the  administration  of the Mortgage Loans and
      the Related  Security,  subject to applicable  law and the  conditions
      set forth in the Administration Agreement (12.3).

9.    (Custody  of records)  keep the  Mortgage  Loan Files  relating to the
      Mortgage   Portfolio  in  safe  custody  and  shall  take  appropriate
      technical and  organisational  measures  against the  unauthorised  or
      unlawful  processing of personal data and against  accidental  loss or
      destruction  of, or damage  to,  personal  data.  The  Servicer  shall
      maintain  in an  adequate  form  such  records  as  are  necessary  to
      enforce each Mortgage  comprised in the Mortgage  Portfolio and, where
      relevant,  any other  Related  Security.  The Servicer  shall keep the
      Mortgage  Loan Files in relation to the  Mortgage  Portfolio in such a
      way  that  they  can be  distinguished  from  information  held by the
      Servicer  for its own behalf as  mortgagee  or  heritable  creditor or
      for other third persons (12.1(a)).

10.   (Ledgers)

      (a)   establish and maintain memorandum ledgers in the books of the
            Mortgages Trustee to enable the ongoing identification and
            segregation of principal, revenue, and overpayments;

      (b)   on a monthly basis ensure that the memorandum ledgers are
            reconciled to the Mortgages Trustee Bank Accounts;

      (c)   establish and maintain memorandum ledgers in the books of Funding
            to enable the ongoing identification and segregation of principal,
            revenue and amounts constituting the Funding Reserve Fund and any
            Issuer Reserve Funds and any Issuer Liquidity Reserve Funds;

      (d)   establish and maintain memorandum ledgers in the books of Funding
            2 to enable the ongoing identification and segregation of
            principal, revenue and amounts constituting the Funding 2 Reserve
            Fund and the Funding 2 Liquidity Reserve Fund;

      (e)   on a monthly basis ensure that the memorandum ledgers are
            reconciled to the Funding Bank Accounts and the Funding 2 Bank
            Accounts (as applicable); and

      (f)   establish and maintain ledgers in the books of Funding, Funding 2
            and each Issuer to record the Intercompany Loans and, where
            applicable, the Loan Tranches and subsequent payments of interest
            and principal on each of the Intercompany Loans and, where
            applicable, the Loan Tranches.

                                      50
<PAGE>

                                  SCHEDULE 6

                         FORM OF ANNUAL CERTIFICATION

Re:   Eight Amended and Restated Administration Agreement (as amended,
      supplemented or otherwise modified from time to time, the
      "Administration Agreement") dated as of 19 January, 2006, among Northern
      Rock plc, as Seller and Servicer, the Mortgages Trustee, the
      Beneficiaries and the Bank of New York

      I, ________________________________, the _______________________ of
      [NAME OF COMPANY], certify that:

      (1)   I have reviewed the servicer compliance statement of the Company
      provided in accordance with Item 1123 of Regulation AB (the "Compliance
      Statement"), the report on assessment of the Servicer's compliance with
      the servicing criteria set forth in Item 1122(d) of Regulation AB (the
      "Servicing Criteria"), provided in accordance with Rules 13a-18 and
      15d-18 under Securities Exchange Act of 1934, as amended (the "Exchange
      Act") and Item 1122 of Regulation AB (the "Servicing Assessment"), the
      registered public accounting firm's attestation report provided in
      accordance with Rules 13a-18 and 15d-18 under the Exchange Act and
      Section 1122(b) of Regulation AB (the "Attestation Report"), and all
      servicing reports, officer's certificates and other information relating
      to the servicing of the Mortgage Loans by the Servicer during 200[ ]
      that were delivered by the Servicer to the Mortgages Trustee pursuant to
      the Administration Agreement (collectively, the "Servicing
      Information");

      (2)   Based on my knowledge, the Servicing Information, taken as a whole,
      does not contain any untrue statement of a material fact or omit to
      state a material fact necessary in order to make the statements made, in
      the light of the circumstances under which such statements were made,
      not misleading with respect to the period of time covered by the
      Servicing Information;

      (3)   Based on my knowledge, all of the Servicing Information required to
      be provided by the Servicer under the Administration Agreement has been
      provided to the Mortgages Trustee;

      (4)   I am responsible for reviewing the activities performed by the
      Servicer and based on my knowledge and the Compliance Statement required
      in this report under Item 1123 of Regulation AB, and except as disclosed
      in the Compliance Statement, the Servicing Assessment or the Attestation
      Report, the Servicer has fulfilled its obligations under the Agreement
      in all material respects; and

      (5)   The Compliance Statement, the Servicing Assessment and Attestation
      Report required to be provided by the Servicer pursuant to the
      Agreement, have been provided to the Mortgages Trustee. Any material
      instance of noncompliance with the Servicing Criteria has been disclosed
      in such reports.

                                      51
<PAGE>

      Date: _________________________

      By:
      Name:       ________________________________
      Title:      ________________________________

                                      52
<PAGE>

                                  SCHEDULE 7

                          FORM OF SERVICING CRITERIA

           TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE STATEMENT

            The assessment of compliance to be delivered by the Servicer shall
address, at a minimum, the criteria identified as below as "Applicable
Servicing Criteria":

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                                       General Servicing Considerations
<S>                  <C>                                                                   <C>
--------------------                                                                       ----------------------
                     Policies and procedures are instituted to monitor any
                     performance or other triggers and events of default in
1122(d)(1)(i)        accordance with the transaction agreements.
--------------------                                                                       ----------------------
                     If any material servicing activities are outsourced to
                     third parties, policies and procedures are instituted to
                     monitor the third party's performance and compliance with
1122(d)(1)(ii)       such servicing activities.
--------------------                                                                       ----------------------
                     Any requirements in the transaction agreements to
                     maintain a back-up servicer for the mortgage loans are
1122(d)(1)(iii)      maintained.
--------------------                                                                       ----------------------
                     A fidelity bond and errors and omissions policy is in
                     effect on the party participating in the servicing
                     function throughout the reporting period in the amount of
                     coverage required by and otherwise in accordance with the
1122(d)(1)(iv)       terms of the transaction agreements.
--------------------                                                                       ----------------------
                                      Cash Collection and Administration
--------------------                                                                       ----------------------
                     Payments on mortgage loans are deposited into the
                     appropriate custodial bank accounts and related bank
                     clearing accounts no more than two business days
                     following receipt, or such other number of days specified
1122(d)(2)(i)        in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made via wire transfer on behalf of an
                     obligor or to an investor are made only by authorized
1122(d)(2)(ii)       personnel.
--------------------                                                                       ----------------------
                     Advances of funds or guarantees regarding collections,
                     cash flows or distributions, and any interest or other
                     fees charged for such advances, are made, reviewed and
1122(d)(2)(iii)      approved as specified in the transaction agreements.
--------------------                                                                       ----------------------
                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
                     overcollateralization, are separately maintained (e.g.,
                     with respect to commingling of cash) as set forth in the
1122(d)(2)(iv)       transaction agreements.
--------------------                                                                       ----------------------
                     Each custodial account is maintained at a federally
                     insured depository institution as set forth in the
                     transaction agreements. For purposes of this criterion,
                     "federally insured depository institution" with respect
                     to a foreign financial institution means a foreign
                     financial institution that meets the requirements of Rule
1122(d)(2)(v)        13k-1(b)(1) of the Securities Exchange Act.
--------------------                                                                       ----------------------
                     Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)       unauthorized access.
--------------------                                                                       ----------------------
</TABLE>

                                      53
<PAGE>

<TABLE>
<CAPTION>
--------------------                                                                       ----------------------
<S>                  <C>                                                                   <C>
                     Reconciliations are prepared on a monthly basis for all
                     asset-backed securities related bank accounts, including
                     custodial accounts and related bank clearing accounts.
                     These reconciliations are (A) mathematically accurate;
                     (B) prepared within 30 calendar days after the bank
                     statement cutoff date, or such other number of days
                     specified in the transaction agreements; (C) reviewed and
                     approved by someone other than the person who prepared
                     the reconciliation; and (D) contain explanations for
                     reconciling items. These reconciling items are resolved
                     within 90 calendar days of their original identification,
                     or such other number of days specified in the transaction
1122(d)(2)(vii)      agreements.
--------------------                                                                       ----------------------
                                      Investor Remittances and Reporting
--------------------                                                                       ----------------------
                     Reports to investors, including those to be filed with
                     the Commission, are maintained in accordance with the
                     transaction agreements and applicable Commission
                     requirements. Specifically, such reports (A) are prepared
                     in accordance with timeframes and other terms set forth
                     in the transaction agreements; (B) provide information
                     calculated in accordance with the terms specified in the
                     transaction agreements; (C) are filed with the Commission
                     as required by its rules and regulations; and (D) agree
                     with investors' or the trustee's records as to the total
                     unpaid principal balance and number of mortgage loans
1122(d)(3)(i)        serviced by the Servicer.
--------------------                                                                       ----------------------
                     Amounts due to investors are allocated and remitted in
                     accordance with timeframes, distribution priority and
1122(d)(3)(ii)       other terms set forth in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made to an investor are posted within two
                     business days to the Servicer's investor records, or such
                     other number of days specified in the transaction
1122(d)(3)(iii)      agreements.
--------------------                                                                       ----------------------
                     Amounts remitted to investors per the investor reports
                     agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)       custodial bank statements.
--------------------                                                                       ----------------------
                                          Pool Asset Administration
--------------------                                                                       ----------------------
                     Collateral or security on mortgage loans is maintained as
                     required by the transaction agreements or related
1122(d)(4)(i)        mortgage loan documents.
--------------------                                                                       ----------------------
                     Mortgage loan and related documents are safeguarded as
1122(d)(4)(ii)       required by the transaction agreements.
--------------------                                                                       ----------------------
                     Any additions, removals or substitutions to the asset
                     pool are made, reviewed and approved in accordance with
                     any conditions or requirements in the transaction
1122(d)(4)(iii)      agreements.
--------------------                                                                       ----------------------
                     Payments on mortgage loans, including any payoffs, made
                     in accordance with the related mortgage loan documents
                     are posted to the Servicer's obligor records maintained
                     no more than two business days after receipt, or such
                     other number of days specified in the transaction
                     agreements, and allocated to principal, interest or other
                     items (e.g., escrow) in accordance with the related
1122(d)(4)(iv)       mortgage loan documents.
--------------------                                                                       ----------------------
                     The Servicer's records regarding the mortgage loans agree
                     with the Servicer's records with respect to an obligor's
1122(d)(4)(v)        unpaid principal balance.
--------------------                                                                       ----------------------
                     Changes with respect to the terms or status of an
                     obligor's mortgage loans (e.g., loan modifications or
                     re-agings) are made, reviewed and approved by authorized
                     personnel in accordance with the transaction agreements
1122(d)(4)(vi)       and related pool asset documents.
--------------------                                                                       ----------------------
                     Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
                     foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
1122(d)(4)(vii)      transaction agreements.
--------------------                                                                       ----------------------
</TABLE>

                                      54
<PAGE>

<TABLE>
<CAPTION>
--------------------                                                                       ----------------------
<S>                  <C>                                                                   <C>
                     Records documenting collection efforts are maintained
                     during the period a mortgage loan is delinquent in
                     accordance with the transaction agreements. Such records
                     are maintained on at least a monthly basis, or such other
                     period specified in the transaction agreements, and
                     describe the entity's activities in monitoring delinquent
                     mortgage loans including, for example, phone calls,
                     letters and payment rescheduling plans in cases where
                     delinquency is deemed temporary (e.g., illness or
1122(d)(4)(viii)     unemployment).
--------------------                                                                       ----------------------
                     Adjustments to interest rates or rates of return for
                     mortgage loans with variable rates are computed based on
1122(d)(4)(ix)       the related mortgage loan documents.
--------------------                                                                       ----------------------
                     Regarding any funds held in trust for an obligor (such as
                     escrow accounts): (A) such funds are analyzed, in
                     accordance with the obligor's mortgage loan documents, on
                     at least an annual basis, or such other period specified
                     in the transaction agreements; (B) interest on such funds
                     is paid, or credited, to obligors in accordance with
                     applicable mortgage loan documents and state laws; and
                     (C) such funds are returned to the obligor within 30
                     calendar days of full repayment of the related mortgage
                     loans, or such other number of days specified in the
1122(d)(4)(x)        transaction agreements.
--------------------                                                                       ----------------------
                     Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such
                     other number of days specified in the transaction
1122(d)(4)(xi)       agreements.
--------------------                                                                       ----------------------
                     Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
                     servicer's funds and not charged to the obligor, unless
                     the late payment was due to the obligor's error or
1122(d)(4)(xii)      omission.
--------------------                                                                       ----------------------
                     Disbursements made on behalf of an obligor are posted
                     within two business days to the obligor's records
                     maintained by the servicer, or such other number of days
1122(d)(4)(xiii)     specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the
1122(d)(4)(xiv)      transaction agreements.
--------------------                                                                       ----------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3) or Item 1115 of Regulation
                     AB, is maintained as set forth in the transaction
1122(d)(4)(xv)       agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                    [NAME OF SERVICER]

                                    Date:  _________________________

                                    By:    ________________________________
                                    Name:
                                    Title:

                                      55
<PAGE>

                            EXECUTION PAGE

as Servicer, Seller and Beneficiary
EXECUTED for and on behalf of                   )
NORTHERN ROCK PLC                               )
by:                                             )

-------------------------
Name:

as Mortgages Trustee
EXECUTED for and on behalf of                   )
GRANITE FINANCE TRUSTEES LIMITED                )
by:                                             )

-------------------------
Name:

as Seller and Beneficiary
EXECUTED for and on behalf of                   )
NORTHERN ROCK PLC                               )
by:                                             )

-------------------------
Name:

                                      56
<PAGE>

as Beneficiary
EXECUTED for and on behalf of                   )
GRANITE FINANCE FUNDING LIMITED                 )
by:                                             )

-------------------------
Name:

as Beneficiary
EXECUTED for and on behalf of                   )
GRANITE FINANCE FUNDING 2 LIMITED               )
by:                                             )

-------------------------
Name:

as Security Trustee and Funding 2 Security Trustee
EXECUTED for and on behalf of                   )
THE BANK OF NEW YORK                            )
by:                                             )

-------------------------
Name:

                                      57
<PAGE>Exhibit 10.2

                            Agreed Form Cover Sheet

                               dated 23 May 2006

attaching:

1.    the form of 1992 ISDA Master Agreement (Multicurrency - Cross Border);

2.    the Agreed Form Schedule thereto (Sidley Austin document number:
      1018032);

3.    the form of 1995 ISDA Credit and Support Annex (Bilateral Form -
      Transfer) (the "CSA pre-printed form") forming part of the Schedule; and

4.    the Agreed Form Paragraph 11 to the CSA pre-printed form (Sidley Austin
      document number: 1032023),

between

(1)   DEUTSCHE BANK AG, LONDON BRANCH; and

(2)   GRANITE MASTER ISSUER plc,

signed for the purposes of identification by:

/s/ Meghan Wallis, /s/ Nathan Townsend
-------------------------------------------------

DEUTSCHE BANK AG, LONDON BRANCH

on 23 May 2006; and

/s/ Sidley Austin
-------------------------------------------------

SIDLEY AUSTIN

on 23 May 2006.

<PAGE>

(Multicurrency - Cross Border)

                                    ISDA,
                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

        dated as of   the Effective Date specified in the Confirmation
                      ------------------------------------------------

         DEUTSCHE BANK AG, LONDON BRANCH and GRANITE MASTER ISSUER plc
         -------------------------------     ---------------------------

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

Accordingly, the parties agree as follows: -

1.    Interpretation

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

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

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

2.    Obligations

(a)   General Conditions.

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

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

      (iii) Each obligation of each party under Section 2(a)(i) is subject to
      (1) the condition precedent that no Event of Default or Potential Event
      of Default with respect to the other party has occurred and is
      continuing, (2) the condition precedent that no Early Termination Date
      in respect of the relevant Transaction has occurred or been effectively
      designated and (3) each other applicable condition precedent specified
      in this Agreement.

      Copyright (C) 1992 by International Swap Dealers Association, Inc.

<PAGE>

(b)   Change of Account. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a
reasonable objection to such change.

(c)   Netting. If on any date amounts would otherwise be payable:-

      (i)   in the same currency; and

      (ii)  in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to
make payment of any such amount will be automatically satisfied and discharged
and, if the aggregate amount that would otherwise have been payable by one
party exceeds the aggregate amount that would otherwise have been payable by
the other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess
of the larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be
made in the Schedule or a Confirmation by specifying that subparagraph (ii)
above will not apply to the Transactions identified as being subject to the
election, together with the starting date (in which case subparagraph (ii)
above will not, or will cease to, apply to such Transactions from such date).
This election may be made separately for different groups of Transactions and
will apply separately to each pairing of Offices through which the parties
make and receive payments or deliveries.

(d)   Deduction or Withholding for Tax.

      (i) Gross-Up. All payments under this Agreement will be made without any
      deduction or withholding for or on account of any Tax unless such
      deduction or withholding is required by any applicable law, as modified
      by the practice of any relevant governmental revenue authority, then in
      effect. If a party is so required to deduct or withhold, then that party
      ("X") will:-

            (1)   promptly notify the other party ("Y") of such requirement;

            (2)   pay to the relevant authorities the full amount required to be
            deducted or withheld (including the full amount required to be
            deducted or withheld from any additional amount paid by X to Y
            under this Section 2(d)) promptly upon the earlier of determining
            that such deduction or withholding is required or receiving notice
            that such amount has been assessed against Y;

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

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

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

                        (B)   the failure of a representation made by Y pursuant
                        to Section 3(f) to be accurate and true unless such
                        failure would not have occurred but for (I) any action
                        taken by a taxing authority, or brought in a court of
                        competent jurisdiction, on or after the date on which
                        a Transaction is entered into (regardless of whether
                        such action is taken or brought with respect to a
                        party to this Agreement) or (11) a Change in Tax Law.

                                      2
<PAGE>

      (ii)  Liability. If: -

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

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

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

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

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

3.    Representations

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

(a)   Basic Representations.

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

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

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

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

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

                                      3
<PAGE>

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

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

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

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

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

4.    Agreements

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

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

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

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

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

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

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

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

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

(e)   Payment of Stamp Tax. Subject to Section 1 1, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of
this Agreement by a jurisdiction in which it is incorporated,

                                      4
<PAGE>

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

5.    Events of Default and Termination Events

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

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

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

      (iii) Credit Support Default.

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

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

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

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

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

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

                                      5
<PAGE>

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

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

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

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

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

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

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

                                      6
<PAGE>

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

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

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

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

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

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

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

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

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

                                      7
<PAGE>

6.    Early Termination

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

(b)   Right to Terminate Following Termination Event

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

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

      (iv)  Right to Terminate. If: -

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

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

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

                                      8
<PAGE>

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

(c)   Effect of Designation.

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

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

(d)   Calculations.

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

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

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

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

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

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

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

                                      9
<PAGE>

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

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

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

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

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

                  (A) if Market Quotation applies, each party will determine a
                  Settlement Amount in respect of the Terminated Transactions,
                  and an amount will be payable equal to (I) the sum of (a)
                  one-half of the difference between the Settlement Amount of
                  the party with the higher Settlement Amount ("X") and the
                  Settlement Amount of the party with the lower Settlement
                  Amount ("Y") and (b) the Termination Currency Equivalent of
                  the Unpaid Amounts owing to X less (11) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to Y; and

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

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

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

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

                                      10
<PAGE>

7.    Transfer

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

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

(b)   a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e). Any purported
transfer that is not in compliance with this Section will be void.

8.    Contractual Currency

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

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

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

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

                                      11
<PAGE>

9.    Miscellaneous

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

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

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

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

(e)   Counterparts and Confirmations.

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

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

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

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

10.   Offices; Multibranch Parties

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

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

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

11.   Expenses

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

                                      12
<PAGE>

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

12.   Notices

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

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

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

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

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

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

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

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

13.   Governing Law and Jurisdiction

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

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

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

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

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

(c)   Service of Process. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any

                                      13
<PAGE>

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

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

14.   Definitions

As used in this Agreement:-

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

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

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

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

"Applicable Rate" means:-

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

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

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

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

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

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

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

"Credit Event Upon Merger" has the meaning specified in Section 5(b).

"Credit Support Document" means any agreement or instrument that is specified
as such in this Agreement.

"Credit Support Provider" has the meaning specified in the Schedule.

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

                                      14
<PAGE>

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

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

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

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

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

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

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

"Loss" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be
its total losses and costs (or gain, in which case expressed as a negative
number) in connection with this Agreement or that Terminated Transaction or
group of Terminated Transactions, as the case may be, including any loss of
bargain, cost of funding or, at the election of such party but without
duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position
(or any gain resulting from any of them). Loss includes losses and costs (or
gains) in respect of any payment or delivery required to have been made
(assuming satisfaction of each applicable condition precedent) on or before
the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies. Loss does
not include a party's legal fees and out-of-pocket expenses referred to under
Section 11. A party will determine its Loss as of the relevant Early
Termination Date, or, if that is not reasonably practicable, as of the
earliest date thereafter as is reasonably practicable. A party may (but need
not) determine its Loss by reference to quotations of relevant rates or prices
from one or more leading dealers in the relevant markets.

"Market Quotation" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or
by such party (expressed as a positive number) in consideration of an
agreement between such party (taking into account any existing Credit Support
Document with respect to the obligations of such party) and the quoting
Reference Market-maker to enter into a transaction (the "Replacement
Transaction") that would have the effect of preserving for such party the
economic equivalent of any payment or delivery (whether the underlying
obligation was absolute or contingent and assuming the satisfaction of each
applicable condition precedent) by the parties under Section 2(a)(i) in
respect of such Terminated Transaction or group of Terminated Transactions
that would, but for the occurrence of the relevant Early Termination Date,
have

                                      15
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      16
<PAGE>

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

"Specialed 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 ofany
payment under this Agreement other than a stamp, registration, documentation
or similar tax.

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

"Tax Event Upon Merger" has the meaning specified in Section 5(b).

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

"Termination Currency" has the meaning specified in the Schedule.

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

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

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

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

                                      17
<PAGE>

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

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

DEUTSCHE BANK AG, LONDON BRANCH           GRANITE MASTER ISSUER plc
----------------------------------        --------------------------------
     (Name of Party)                           (Name of Party)

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

                                      18
<PAGE>

                                    Deutsche Bank AG/Granite Master Issuer plc
                                    Cross Currency/Interest Rate ISDA Schedule
                                                Agreed Form Version: 23.05.06.

                             Agreed Form Schedule

(Multicurrency - Cross Border)

                                   SCHEDULE

                                    to the

                                   1992 ISDA

                               MASTER AGREEMENT

         dated as of the Effective Date specified in the Confirmation,

between

(1)   DEUTSCHE BANK AG, LONDON BRANCH ("Party A"); and

(2)   GRANITE MASTER ISSUER plc ("Party B").

Part 1.  Termination Provisions.

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

      Section 5(a)(v), none

      Section 5(a)(vi), none

      Section 5(a)(vii), none

      Section 5(b)(iv), none

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

      Section 5(a)(v), none

      Section 5(a)(vi), none

      Section 5(a)(vii), none

      Section 5(b)(iv), none

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

                                      19
<PAGE>

(c)   The "Cross Default" provisions of Section 5(a)(vi) of this Agreement
      will apply to Party A and will not apply to Party B.

      "Specified Indebtedness" will have the meaning specified in Section 14
      of this Agreement.

      "Threshold Amount" means, with respect to Party A, an amount equal to
      two per cent. (2%) of its total shareholders' equity as specified from
      time to time in the most recent annual report of Deutsche Bank AG
      containing consolidated financial statements, prepared in accordance
      with accounting principles that are generally accepted for institutions
      of its type in the jurisdiction of its organization and certified by
      independent public accountants, or its equivalent in any other currency.

(d)   The "Credit Event Upon Merger" provisions of Section 5(b)(iv) of this
      Agreement will apply to Party A and will not apply to Party B.

(e)   The "Automatic Early Termination" provision of Section 6(a) of this
      Agreement will not apply to Party A and will not apply to Party B.

(f)   Payments on Early Termination. For the purpose of Section 6(e) of this
      Agreement:-

      (i)   Market Quotation will apply.

      (ii)  The Second Method will apply.

(g)   "Termination Currency" means Sterling.

(h)   Additional Termination Event will apply. The events which constitute
      Additional Termination Events are set forth in Part 5(f), Part
      5(k)(iii), Part 5(l)(iv) and Part 5(m)(v) of this Agreement.

                                      20
<PAGE>

Part 2. Tax Representations

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

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

(b)   Payee Representations. For the purposes of Section 3(f) of the
      Agreement, neither Party A nor Party B make any representation.

                                      21
<PAGE>

Part 3. Agreement to Deliver Documents

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

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

      Party required to       Form/Document/             Date by which to be
      deliver document        Certificate                delivered
      None                    None                       None

(b)   Other documents to be delivered are:-

<TABLE>
<CAPTION>
      Party required        Form/Document/          Date by which     Covered by
      to deliver            Certificate             to be delivered   Section 3(d)
      document                                                        Representation
      <S>                   <C>                     <C>               <C>
      Party A and           Appropriate evidence    On signing of     Yes
      Party B               of its signatory's      this Agreement
                            authority
      Party B               Certified copy of       On signing of     Yes
                            board resolution        this Agreement

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

      Party A               An executed original    On signing of     No
                            of the Credit Support   this Agreement
                            Document listed in
                            Part 4(f) below
</TABLE>

                                      22
<PAGE>

Part 4. Miscellaneous

(a)   Addresses for Notices. For the purpose of Section 12(a) of this
      Agreement:-

      Address for notices or communications to Party A:-

      Address:            Deutsche Bank AG, Head Office.

                          Taunusanlage 12
                          60262 Frankfurt
                          Germany

      Attention:          Legal Department

      Telex No:           411836 or 416731 or 41233

      Answerback:         DBF-D

      Address for notices or communications to Party B:-

      Address:            Granite Master Issuer plc
                          Fifth Floor
                          100 Wood Street
                          London
                          EC2V 7EX

      With a copy to:     Northern Rock plc
                          Northern Rock House
                          Gosforth
                          Newcastle upon Tyne
                          NE3 4PL

      Attention:          Andy McClean

      Facsimile No.:      +44 (0)191 279 4929

      With a copy to the Note Trustee:-

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

      Attention:          Corporate Trust (Global Structured Finance)

                                      23
<PAGE>

      Facsimile No.:      +44 (0)20 7964 6399

(b)   Process Agent. For the purpose of Section 13(c) of this Agreement:-

      Party A appoints as its Process Agent:  None.

      Party B appoints as its Process Agent:  None.

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

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

      Party A is not a Multibranch Party and will act through its London
      branch.

      Party B is not a Multibranch Party.

(e)   Calculation Agent. The Calculation Agent shall be Party A provided that
      such calculations are subject to Party B's agreement as provided herein.
      If Party B acting in good faith disputes Party A's calculations on a
      commercially unreasonable basis, it shall deliver its written objection
      to Party A within five Business Days of receipt of Party A's calculation
      specifying in reasonable detail (i) its objections together with
      supporting calculations, (ii) its proposed calculation and (iii) any
      amount with respect to the calculation which is not in dispute. Party A
      and Party B shall negotiate in good faith to resolve the dispute,
      provided that in the event that the dispute is not resolved within five
      Business Days following receipt of Party B's objection, Party A and
      Party B shall select a leading, independent dealer in derivatives to
      make the disputed calculation (the "Substitute Calculation Agent"). If
      the parties are unable to agree on a Substitute Calculation Agent, each
      of the parties shall elect an independent dealer in derivatives and such
      two dealers shall agree on a third party who shall be deemed to be the
      Substitute Calculation Agent.

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

      In respect of Party A: the 1995 Credit Support Annex (Bilateral Form -
      Transfer) between Party A and Party B dated as of the Effective Date
      specified in the Confirmation (the "Credit Support Annex").

      Where a failure to comply with the terms of the Credit Support Annex is
      addressed in Part 5(k), (l) or (m), such failure shall not be an Event
      of Default under Section 5(a)(ii) unless so stated in Part 5(k), (l) or
      (m).

      In respect of Party B: none.

(g)   Credit Support Provider.

      Credit Support Provider means, in relation to Party A, none.

      Credit Support Provider means, in relation to Party B, none.

                                      24
<PAGE>

(h)   Governing Law. This Agreement will be governed by and construed in
      accordance with English law.

(i)   Netting of Payments. Sub-paragraph (ii) of Section 2(c) of this
      Agreement will apply to Transactions entered into under this Agreement
      unless otherwise specified in a Confirmation.

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

                                      25
<PAGE>

Part 5. Other Provisions

(a)   Definitions and Interpretation

      Capitalised terms used in this Agreement shall, except where the context
      otherwise requires and save where otherwise defined in this Agreement,
      bear the meanings given to them in the Programme Master Definitions
      Schedule and the Issuer Master Definitions Schedule (each as described
      in the Confirmation). Such Issuer Master Definitions Schedule shall
      prevail to the extent that it conflicts with such Programme Master
      Definitions Schedule.

      For the purposes of this Agreement:

      "Issuer Notes" has the meaning given to such term in the Confirmation.

(b)   No Set-Off

      (i)   All payments under this Agreement shall be made without set-off or
            counterclaim, except as expressly provided for in Section 6. For
            the avoidance of doubt, Section 2(c) shall not be affected by this
            provision.

      (ii)  Section 6(e) shall be amended by the deletion of the following
            sentence: "The amount, if any, payable in respect of an Early
            Termination Date and determined pursuant to this Section will be
            subject to any Set-off."

(c)   Security Interest

      Notwithstanding Section 7, Party A hereby agrees and consents to the
      assignment by way of security by Party B of its right, title and
      interest under this Agreement (without prejudice to, and after giving
      effect to, any contractual netting provision contained in this
      Agreement) to the Issuer Security Trustee (or any successor thereto)
      pursuant to and in accordance with the terms and conditions of the
      Issuer Deed of Charge and acknowledges notice of such assignment.

(d)   Disapplication of certain Events of Default

      Section 5(a)(ii), Section 5(a)(iii), Section 5(a)(iv), Section 5(a)(v),
      Section 5(a)(vii)(2),(5),(6),(7) and (9) and Section 5(a)(viii) will not
      apply in respect of Party B.

      Section 5(a)(vii)(8) will not apply to Party B to the extent that it
      applies to Section 5(a)(vii)(2),(5),(6) and (7).

      Section 5(a)(vii)(4) is deleted in its entirety and replaced with the
      following:

      " (4) institutes or has instituted against it a proceeding seeking a
      judgment of insolvency or bankruptcy or a petition is presented for its
      winding-up or liquidation or the making of an administration order
      against it and such proceeding or petition results in a judgment of

                                      26
<PAGE>

      insolvency or bankruptcy or the making of an order for its winding-up,
      administration or liquidation".

(e)   Disapplication of certain Termination Events

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

(f)   Additional Termination Events

      (A)   Party B Additional Termination Events:

      The following shall each constitute an Additional Termination Event with
      respect to Party B:

      (i)   Note Enforcement Notice. The Note Trustee serves an Issuer
            Enforcement Notice on Party B in accordance with Condition 9
            (Events of Default) of the Issuer Notes.

      (ii)  Early Redemption. The Issuer Notes are redeemed in full in
            accordance with Condition 5(E) or (F) at any time prior to their
            Final Maturity Date.

      In the case of (i) and (ii) above, Party B shall be the sole Affected
      Party[, except that: in the case of (i), if the event described therein
      occurs on or after the Termination Date (as defined in the
      Confirmation), there shall be deemed to be two Affected Parties for the
      purposes only of Section 6(b)(iv)].(1)

      (B)   Party A Additional Termination Event:

      The following shall constitute an Additional Termination Event with
      respect to Party A:

      Without prejudice to any other remedies available to Party B under this
      Agreement or otherwise, it shall be an Additional Termination Event
      under this Agreement if the Additional Tax Representation in Part
      5(n)(iii) proves to have been incorrect or misleading in any material
      respect with respect to one or more Transactions when made or repeated
      or deemed to have been made or repeated. The sole Affected Party shall
      be Party A.

(g)   Northern Rock plc as Party B's Agent

      Party B hereby declares that pursuant to the Issuer Cash Management
      Agreement it has appointed Northern Rock plc to act as its agent for the
      purpose, inter alia, of the operation

----------------
(1)   The words in square brackets will be incorporated into the Confirmation
      only where the Class of the Issuer Notes referred to therein are rated
      on their issuance "AAA" (or equivalent) by S&P, "AAA" (or equivalent) by
      Fitch and "Aaa" (or equivalent) by Moody's.

                                      27
<PAGE>

      of this Agreement and dealing with payments hereunder. Accordingly,
      unless and until written notice is received by Party A from the Note
      Trustee that such appointment has been terminated, Party A shall be
      entitled to treat all communications and acts relating to this Agreement
      received from or carried out by Northern Rock plc as agent for Party B
      under the Issuer Cash Management Agreement as being those of Party B,
      and Party B hereby agrees to ratify and confirm the same.

(h)   Security, Enforcement and Limited Recourse

      (i)   Party A confirms to Party B that it is, or will be, by the date
            hereof, bound by the terms of the Issuer Deed of Charge and, in
            particular, confirms that: (i) save as otherwise expressly set out
            in the Issuer Deed of Charge, no sum shall be payable by or on
            behalf of Party B to it except in accordance with the Issuer
            Priority of Payments as set out in the Issuer Deed of Charge (as
            the same may be amended, restated, supplemented and/or otherwise
            modified from time to time); and (ii) it will not take any steps
            for the winding up, dissolution or reorganization or for the
            appointment of a receiver, administrator, administrative receiver,
            trustee, liquidator, sequestrator or similar officer of Party B or
            of any or all of its revenues and assets nor participate in any ex
            parte proceedings nor seek to enforce any judgment against Party B
            except as provided in the Issuer Deed of Charge.

      (ii)  In relation to all sums due and payable by Party B to Party A,
            Party A agrees that it shall have recourse only to sums available
            to Party B for the purpose of making payments to Party A in
            accordance with the relevant Issuer Priority of Payments and the
            Issuer Deed of Charge.

      (iii) If, on any payment date under a Transaction, an amount is payable
            by Party B to Party A and Party B does not pay such amount in full
            on such date (after the application of Section 2(c) to such
            Transaction) because of the limitation contained in Part 5(h)(i)
            above, then: (A) payment by Party B of the shortfall (and the
            corresponding payment obligation of Party A with respect to such
            shortfall (being the full amount Party A would otherwise owe on
            such date less the actual amount payable by Party A determined in
            accordance with Part 5(h)(iii)(C) below)) will not then fall due,
            [but will instead be deferred until the first Payment Date (as
            defined in the Confirmation) thereafter on which sufficient funds
            are available (subject to the limitation in Part 5(h)(i)
            above)](2), (B) failure by Party B to make the full payment under
            such Transaction (after the application of Section 2(c) to such
            Transaction) shall not constitute an Event of Default for the
            purpose of Section 5(a)(i), and (C) the obligation of Party A to
            make payment to Party B, in respect of the same Transaction, on
            such date, will be reduced so that Party A will be obligated to
            pay the Equivalent Percentage of the amount it would

--------------
(2)   The words in square brackets will not be incorporated into the
      Confirmation where the Class of the Issuer Notes referred to therein are
      rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
      equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      28
<PAGE>

            otherwise owe under that Transaction. "Equivalent Percentage"
            means the percentage obtained by dividing the amount paid by Party
            B by the amount it would have paid on the relevant date absent
            such limitation multiplied by one hundred provided that, in
            respect of any Transaction where the Confirmation provides that
            Party B makes payments on a monthly basis and Party A makes
            payments on a quarterly basis, the Equivalent Percentage shall be
            adjusted by the Calculation Agent so as to reflect all of the
            amounts paid by Party B during the relevant quarterly period
            applicable to Party A's quarterly payment.

      (iv)  If an Early Termination Date results from an Event of Default or a
            Termination Event, any amount payable (the payment of which was
            deferred or not paid in the circumstances described under Part
            5(h)(iii) above by Party A or by Party B, as the case may be,
            under this Agreement) will be deemed to be Unpaid Amounts owing to
            Party B or, as the case may be, owing to Party A on the Early
            Termination Date.

      (v)   Following the calculation thereof, and in any event no later than
            two Local Business Days prior to any relevant Payment Date (as
            defined in the Confirmation), Party B agrees to notify Party A of
            the amount of any shortfall[, the payment of which by Party B is
            deferred in accordance with Part 5(h)(iii) above)](3).

(i)   Scope of Agreement

      It is hereby understood and agreed that the provisions of this Agreement
      shall only apply to the Transaction entered into between Party A and
      Party B on the Trade Date specified in the only Confirmation (other than
      the Credit Support Annex) that supplements, forms part of, and is
      subject to this Agreement (and, for the avoidance of doubt, all
      references in this Agreement to "Confirmation" shall be to such
      Confirmation or, as the context requires, the Credit Support Annex) and
      that no other Transaction may be entered into pursuant hereto except in
      accordance with sub-Parts 5(k)(i)(A), 5(k)(ii)(B), 5(l)(i)(D),
      5(l)(iii), 5(m)(i)(A), 5(m)(ii)(A) or 5(m)(iv), or where the Rating
      Agencies have confirmed in writing that the then current ratings of the
      Issuer Notes would not be adversely affected by such other Transaction.

(j)   Authorised Person

      For the purposes of Section 3 of this Agreement, Party A represents to
      Party B (which representation will be deemed to be repeated by Party A
      on each date on which a Transaction is entered into and until all
      outstanding payment and delivery obligations of Party A, from time to
      time, under this Agreement have been satisfied in full) that it is an

-----------------
(3)   The words in square brackets will not be incorporated into the
      Confirmation where the Class of the Issuer Notes referred to therein are
      rated on their issuance "AAA" (or equivalent) by S&P, "AAA" (or
      equivalent) by Fitch and "Aaa" (or equivalent) by Moody's.

                                      29
<PAGE>

      authorised person for the purposes of the Financial Services and Markets
      Act 2000 (or any successor to it).

(k)   Ratings Downgrade of Party A - Standard & Poor's Rating Services, a
      division of The McGraw-Hill Companies Inc. ("S&P")

      (i)   Initial S&P Note Downgrade Event

      In the event that an Initial S&P Note Downgrade Event occurs, then Party
      A shall, within 30 days of the occurrence of such Initial S&P Note
      Downgrade Event, at its own cost, either:-

      (A)   put in place an appropriate mark-to-market collateral arrangement,
            (which may be based on the credit support documentation published
            by the International Swaps and Derivatives, Inc. ("ISDA"), or
            otherwise, and relates to collateral in the form of cash or
            securities or both) in support of Party A's obligations under this
            Agreement on terms satisfactory to the Note Trustee (whose consent
            shall be given if S&P confirms that the provision of such
            collateral would maintain the rating of the Issuer Notes by S&P or
            restore the rating of the Issuer Notes by S&P to the level it
            would have been at immediately prior to such Initial S&P Note
            Downgrade Event) provided that (1) Party A shall be deemed to have
            satisfied the requirements of S&P if the amount of collateral
            agreed to be provided in the form of cash and/or securities (the
            "Collateral Amount") is determined on a basis which satisfies, but
            is no more onerous than, the criteria set out in the most recent
            article published by S&P on "Ratings Direct" which enables
            entities rated lower than a specified level to participate in
            structured finance transactions which, through collateralization
            are rated at a higher level (the "S&P Criteria"); and (2) the
            Collateral Amount shall not be required to exceed such amount as
            would be required (in accordance with the S&P Criteria) to
            maintain or restore the rating of the Issuer Notes by S&P at or to
            the level they would have been at immediately prior to such
            Initial S&P Note Downgrade Event; or

      (B)   transfer all of its rights and obligations with respect to this
            Agreement to a replacement third party whose short-term, unsecured
            and unsubordinated debt obligations are rated at least as high as
            "A-1+" (or its equivalent) by S&P or such other rating as is
            commensurate with the rating assigned to the Issuer Notes by S&P
            from time to time; or

      (C)   procure another person to become co-obligor or guarantor in
            respect of the obligations of Party A under this Agreement whose
            short-term, unsecured and unsubordinated debt obligations are
            rated at least as high as "A-1+" (or its equivalent) by S&P or
            such other rating as is commensurate with the rating assigned to
            the Issuer Notes by S&P from time to time; or

      (D)   take such other action as Party A may agree with S&P as will
            result in the rating of the Issuer Notes then outstanding
            following the taking of such action being

                                      30
<PAGE>

            rated no lower than the rating of the Issuer Notes immediately
            prior to such Initial S&P Note Downgrade Event.

      If any of sub-paragraphs (k)(i)(B), (k)(i)(C) or (k)(i)(D) above are
      satisfied at any time, all collateral (or the equivalent thereof, as
      appropriate) transferred by Party A pursuant to sub-paragraph (k)(i)(A)
      above will be transferred back to Party A, and Party A will not be
      required to transfer any additional collateral in respect of such
      particular Initial S&P Note Downgrade Event.

      (ii)  Subsequent S&P Note Downgrade Event

            (A)   Party A shall, within 10 days of the occurrence of a
                  Subsequent S&P Note Downgrade Event, at its own cost and
                  expense, use its best endeavours to take the action set out
                  in sub-paragraph (k)(i)(B), (k)(i)(C) or (k)(i)(D) above;
                  and

            (B)   if, at the time a Subsequent S&P Note Downgrade Event
                  occurs, Party A has provided collateral pursuant to a
                  mark-to-market collateral arrangement put in place pursuant
                  to sub-paragraph (k)(i)(A) above following an Initial S&P
                  Note Downgrade Event, it will continue to provide collateral
                  notwithstanding the occurrence of a Subsequent S&P Note
                  Downgrade Event until such time as the action in
                  sub-paragraph (k)(ii)(A) above has been taken.

      If the action set out in sub-paragraph (k)(ii)(A) above is taken at any
      time, all collateral (or the equivalent thereof, as appropriate)
      transferred by Party A pursuant to sub-paragraph (k)(i)(A) above will be
      transferred back to Party A, and Party A will not be required to
      transfer any additional collateral in respect of such Subsequent S&P
      Note Downgrade Event.

      (iii) Additional Termination Events

            If Party A does not take any of the measures described in
            sub-paragraph (k)(i) above such failure shall not be or give rise
            to an Event of Default but shall constitute an Additional
            Termination Event with respect to Party A and shall be deemed to
            have occurred on the thirtieth day following the Initial S&P Note
            Downgrade Event with Party A as the sole Affected Party and all
            Transactions as Affected Transactions.

            If, at the time a Subsequent S&P Note Downgrade Event occurs,
            Party A has provided collateral pursuant to a mark-to-market
            collateral arrangement put in place pursuant to sub-paragraph
            (k)(i)(A) above and fails to continue to post collateral in
            accordance with sub-paragraph (k)(ii)(B) above pending compliance
            with sub-paragraph (k)(ii)(A) above, such failure will not be or
            give rise to an Event of Default but will constitute an Additional
            Termination Event with respect to Party A which will be deemed to
            have occurred on the later of the tenth day following such
            Subsequent S&P Note Downgrade Event and the thirtieth day
            following the Initial S&P Note Downgrade Event with Party A as the
            sole

                                      31
<PAGE>

            Affected Party and all Transactions as Affected Transactions.
            Further, an Additional Termination Event with respect to Party A
            shall be deemed to have occurred if, even if Party A continues to
            post collateral as required by sub-paragraph (k)(ii)(B) above,
            Party A does not take the action described in sub-paragraph
            (k)(ii)(A) above. Such Additional Termination Event will be deemed
            to have occurred on the tenth day following the Subsequent S&P
            Note Downgrade Event with Party A as the sole Affected Party and
            all Transactions as Affected Transactions.

            However, in the event that Party B were to designate an Early
            Termination Date and there would be a payment due to Party A,
            Party B may only designate such an Early Termination Date in
            respect of an Additional Termination Event under this
            sub-paragraph (k)(iii) if Party B has found a replacement
            counterparty willing to enter into a new transaction with Party B
            on terms that reflect as closely as reasonably possible (as the
            Note Trustee, on behalf of Party B may, in its absolute
            discretion, determine) the economic, legal and credit terms of the
            Terminated Transaction with Party A.

      (iv)  S&P Definitions

            For the purposes of this Part 5(k):

            an "Initial S&P Note Downgrade Event" will occur where:

            (a)   the short-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor), or any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor), cease to be rated at least as high as "A-1+" (or
                  its equivalent) by S&P, and

            (b)   as a result of such cessation, the then current rating of
                  the Issuer Notes may, in the reasonable opinion of S&P, be
                  downgraded or placed under review for possible downgrade;
                  and

            a "Subsequent Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor), or any guarantor of Party A's
                  obligations under this Agreement (or its successor), cease
                  to be rated at least as high as "BBB-" (or its equivalent)
                  by S&P, and

            (b)   as a result of such cessation, the then current rating of
                  the Issuer Notes may, in the reasonable opinion of S&P, be
                  downgraded or placed under review for possible downgrade.

(l)   Ratings Downgrade of Party A - Moody's Investors Service Limited
      ("Moody's")

      (i)   Initial Moody's Note Downgrade Event

                                      32
<PAGE>

                  Within 30 days of the occurrence of an Initial Moody's Note
                  Downgrade Event, Party A shall, on a reasonable efforts
                  basis and at its own cost, attempt to:

            (A)   transfer all of its rights and obligations with respect to
                  this Agreement to either (x) a replacement third party with
                  the Required Ratings (as defined below) provided that such
                  transfer does not result in any requirement for deduction or
                  withholding for or on account of any Tax, or (y) a
                  replacement third party which, as agreed with Moody's, will
                  not adversely affect the ratings of the Issuer Notes; or

            (B)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement.
                  Such co-obligor or guarantor may be either (x) a person with
                  the Required Ratings (as defined below) provided that such
                  transfer does not result in any requirement for deduction or
                  withholding for or on account of any Tax, or (y) a person,
                  who as agreed with Moody's, will not adversely affect the
                  ratings of the Issuer Notes; or

            (C)   take such other action as Moody's shall confirm to Party A
                  will remedy an Initial Moody's Note Downgrade Event; or

            (D)   provide collateral in the form of cash or securities or
                  both, in support of its obligations under this Agreement in
                  accordance with the provisions of the Credit Support Annex.

            If any of sub-paragraphs (l)(i)(A), (l)(i)(B) or (l)(i)(C) above
            are satisfied at any time, all collateral (or the equivalent
            thereof, as appropriate) transferred by Party A pursuant to
            sub-paragraph (l)(i)(D) above will be transferred back to Party A
            and Party A will not be required to transfer any additional
            collateral as a consequence of such particular Initial Moody's
            Note Downgrade Event.

      (ii)  Subsequent Moody's Note Downgrade Event

            Party A shall, within 30 days of the occurrence of a Subsequent
            Moody's Note Downgrade Event, on a reasonable efforts basis and at
            its own cost, attempt to:

            (A)   transfer all of its rights and obligations with respect to
                  this Agreement to either (x) a replacement third party with
                  the Required Ratings (as defined below) provided that such
                  transfer does not result in any requirement for deduction or
                  withholding for or on account of any Tax, or (y) a
                  replacement third party which, as agreed with Moody's, will
                  not adversely affect the ratings of the Issuer Notes; or

            (B)   procure another person to become co-obligor or guarantor in
                  respect of the obligations of Party A under this Agreement.
                  Such co-obligor or guarantor may be either (x) a person with
                  the Required Ratings (as defined below) provided that such
                  transfer does not result in any requirement for deduction or
                  withholding for or on account of any Tax, or (y) a person,

                                      33
<PAGE>

                  who as agreed with Moody's, will not adversely affect the
                  ratings of the Issuer Notes; or

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

      (iii) Subsequent Moody's Note Downgrade Event - Collateral Requirements

            Pending compliance with any of sub-paragraphs (l)(ii)(A),
            (l)(ii)(B) or (l)(ii)(C) above, Party A will at its own cost and
            within 10 days of such Subsequent Moody's Note Downgrade Event or
            30 days of the occurrence of an Initial Moody's Note Downgrade
            Event, whichever is the earlier, provide collateral in the form of
            cash or securities or both, in support of its obligations under
            this Agreement in accordance with the provisions of the Credit
            Support Annex; provided that, if at the time when a Subsequent
            Moody's Note Downgrade Event occurs, Party A has provided
            collateral pursuant to the Credit Support Annex pursuant to
            sub-paragraph (l)(i)(D) above, it will continue to provide
            collateral notwithstanding the occurrence of a Subsequent Moody's
            Note Downgrade Event.

            If any of sub-paragraphs (l)(ii)(A), (l)(ii)(B) or (l)(ii)(C)
            above are satisfied at any time, all collateral (or the equivalent
            thereof, as appropriate) transferred by Party A pursuant to this
            sub-paragraph (l)(iii) will be transferred back to Party A and
            Party A will not be required to transfer any additional collateral
            (subject always to any collateral which may be required pursuant
            to sub-paragraph (l)(i)(D) above and unless a further Subsequent
            Moody's Note Downgrade Event occurs).

      (iv)  Additional Termination Events and Event of Default

            If Party A does not take the measures described in sub-paragraph
            (l)(i) above such failure shall not be or give rise to an Event of
            Default but shall constitute an Additional Termination Event with
            respect to Party A and shall be deemed to have occurred on the
            thirtieth day following an Initial Moody's Note Downgrade Event
            with Party A as the sole Affected Party and all Transactions as
            Affected Transactions.

            If Party A does not take the measures described in sub-paragraph
            (l)(iii) above such failure shall give rise to an Event of Default
            under Section 5(a)(iii) with respect to Party A and shall be
            deemed to have occurred on the tenth day following such Subsequent
            Moody's Note Downgrade Event with Party A as the sole Defaulting
            Party. Further, it shall constitute an Additional Termination
            Event with respect to Party A if, even after satisfying the
            requirements of sub-paragraph (l)(iii), Party A has failed, having
            applied reasonable efforts, to comply with any of sub-paragraphs
            (l)(ii)(A), (l)(ii)(B) or (l)(ii)(C) and such Additional
            Termination Event shall be deemed to have occurred on the
            thirtieth day following such Subsequent Moody's Note Downgrade
            Event with Party A as the sole Affected Party and all Transactions
            as Affected Transactions.

                                      34
<PAGE>

            However, in the event that Party B were to designate an Early
            Termination Date and there would be a payment due to Party A,
            Party B may only designate such an Early Termination Date in
            respect of an Additional Termination Event under this
            sub-paragraph (l)(iv) if Party B has found a replacement
            counterparty willing to enter into a new transaction with Party B
            on terms that reflect as closely as reasonably possible (as the
            Note Trustee, on behalf of Party B, may, in its absolute
            discretion, determine) the economic, legal and credit terms of the
            Terminated Transactions with Party A.

      (v)   Mark-to-Market valuation

            In relation to paragraphs (l)(i)(D) and (iii) above, Party A will,
            upon receipt of reasonable notice from Moody's demonstrate to
            Moody's the calculation by it of the mark-to-market value of the
            outstanding Transactions. In relation to paragraph (iii) above,
            Party A will, at its own cost, on receipt of reasonable notice
            from Moody's (which, for the avoidance of doubt, will be no less
            than 30 days) arrange a third party valuation of the
            mark-to-market value of the outstanding Transactions.

      (vi)  Moody's Definitions

            For the purposes of this Part 5(l):

            an "Initial Moody's Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any
                  guarantor of Party A's obligations under this Agreement (or
                  its successor), cease to be rated at least as high as "A1"
                  (or its equivalent) by Moody's, or

            (b)   the short-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) and, if relevant,
                  any guarantor of Party A's obligations under this Agreement
                  (or its successor), cease to be rated at least as high as
                  "P-1" (or its equivalent) by Moody's;

            a "Subsequent Moody's Note Downgrade Event" will occur where:

            (a)   the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) and, if relevant, any
                  guarantor of Party A's obligations under this Agreement (or
                  its successor), cease to be rated at least as high as "A3"
                  (or its equivalent) by Moody's, or

            (b)   the short-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) and, if relevant,
                  any guarantor of Party A's obligations under this Agreement
                  (or its successor), cease to be rated at least as high as
                  "P-2" (or its equivalent) by Moody's; and

                                      35
<PAGE>

                  "Required Ratings" means, in respect of a person, its
                  short-term, unsecured and unsubordinated debt obligations
                  are rated at least as high as "P-1" and its long-term,
                  unsecured and unsubordinated debt obligations are rated at
                  least as high as "A1", or such other ratings as may be
                  agreed with Moody's from time to time.

      (m)   Ratings Downgrade of Party A - Fitch Ratings Ltd ("Fitch")

            (i)   Initial Fitch Note Downgrade Event

                  Party A will, on a reasonable efforts basis, within 30 days
                  of the occurrence of an Initial Fitch Note Downgrade Event,
                  at its own cost, either:-

                  (A)   provide collateral in the form of cash or securities
                        or both, in support of its obligations under this
                        Agreement, in accordance with the provisions of the
                        Credit Support Annex; or

                  (B)   transfer all of its rights and obligations with
                        respect to this Agreement to a replacement third party
                        whose long-term, unsecured and unsubordinated debt
                        ratings are rated at least as high as "A+" (or its
                        equivalent) by Fitch, and whose short-term, unsecured
                        and unsubordinated debt ratings are rated at least as
                        high as "F1" (or its equivalent) by Fitch or such
                        other rating as is commensurate with the rating
                        assigned to the Issuer Notes by Fitch from time to
                        time; or

                  (C)   procure another person to become co-obligor or
                        guarantor in respect of the obligations of Party A
                        under this Agreement whose long-term, unsecured and
                        unsubordinated debt ratings are rated at least as high
                        as "A+" (or its equivalent) by Fitch, and whose
                        short-term, unsecured and unsubordinated debt ratings
                        are rated at least as high as "F1" (or its equivalent)
                        by Fitch or such other rating as is commensurate with
                        the rating assigned to the Issuer Notes by Fitch from
                        time to time; or

                  (D)   take such other action as Party A may agree with Fitch
                        as will result in the rating of the Issuer Notes then
                        outstanding being maintained, or obtain confirmation
                        from Fitch that there is no adverse effect on the
                        rating of the Issuer Notes as a result of that Initial
                        Fitch Downgrade Event so that none of the courses of
                        action outlined at (m)(i)(A), (m)(i)(B) or (m)(i)(C)
                        above need be pursued in respect of such Initial Fitch
                        Downgrade Event.

                  If any of sub-paragraphs (m)(i)(B), (m)(i)(C) or (m)(i)(D)
                  are satisfied at any time all collateral (or the equivalent
                  thereof, as appropriate) transferred by Party A pursuant to
                  sub-paragraph (m)(i)(A) will be transferred back to Party A
                  and Party A will not be required to transfer any additional
                  collateral in consequence of the particular Initial Fitch
                  Note Downgrade Event.

            (ii)  First Subsequent Fitch Note Downgrade Event

                                      36
<PAGE>

                  Party A will on a reasonable efforts basis, within 30 days
                  of the occurrence of a First Subsequent Fitch Note Downgrade
                  Event, at its own cost, either,

                  (A)   within 30 days of the occurrence of a First Subsequent
                        Fitch Note Downgrade Event provide collateral in the
                        form of cash or securities or both, in support of its
                        obligations under this Agreement in accordance with
                        the provisions of the Credit Support Annex; provided
                        that, if at the time when a First Subsequent Fitch
                        Note Downgrade Event Party A has provided collateral
                        pursuant to the Credit Support Annex pursuant to
                        sub-paragraph (m)(i)(A) above it will continue to
                        provide collateral notwithstanding the occurrence of a
                        First Subsequent Fitch Note Downgrade Event; provided
                        further that, in either case, the mark-to-market
                        calculations and the correct and timely provision of
                        collateral thereunder are verified by an independent
                        third party within five Local Business Days of the
                        date on which collateral is provided pursuant to this
                        sub-paragraph (l)(ii)(A) and thereafter, on a periodic
                        basis on every fifth Local Business Day whilst
                        collateral is being provided pursuant to this
                        sub-paragraph (l)(ii)(A) (with the costs of such
                        independent verification being borne by Party A); or

                  (B)   transfer all of its rights and obligations with
                        respect to this Agreement to a replacement third party
                        whose long-term, unsecured and unsubordinated debt
                        ratings are rated at least as high as "A+" (or its
                        equivalent) by Fitch, and whose short-term, unsecured
                        and unsubordinated debt ratings are rated at least as
                        high as "F1" (or its equivalent) by Fitch or such
                        other rating as is commensurate with the rating
                        assigned to the Issuer Notes by Fitch from time to
                        time; or

                  (C)   procure another person to become co-obligor or
                        guarantor in respect of the obligations of Party A
                        under this Agreement whose long-term, unsecured and
                        unsubordinated debt ratings are rated at least as high
                        as "A+" (or its equivalent) by Fitch, and whose
                        short-term, unsecured and unsubordinated debt ratings
                        are rated at least as high as "F1" (or its equivalent)
                        by Fitch or such other rating as is commensurate with
                        the rating assigned to the Issuer Notes by Fitch from
                        time to time; or

                  (D)   take such other action as Party A may agree with Fitch
                        as will result in the rating of the Issuer Notes then
                        outstanding being maintained, or obtain confirmation
                        from Fitch that there is no adverse effect on the
                        rating of the Issuer Notes as a result of that First
                        Subsequent Fitch Downgrade Event so that none of the
                        courses of action outlined at (m)(ii)(A), (m)(ii)(B)
                        or (m)(ii)(C) above need be pursued in respect of such
                        First Subsequent Fitch Downgrade Event.

                  If any of sub-paragraphs (m)(ii)(B), (m)(ii)(C) or
                  (m)(ii)(D) above are satisfied at any time, all collateral
                  (or the equivalent thereof, as appropriate) transferred by
                  Party A pursuant to sub-paragraph (m)(ii)(A) above will be
                  transferred back to

                                      37
<PAGE>

                  Party A and Party A will not be required to transfer any
                  additional collateral as a consequence of the particular
                  First Subsequent Fitch Note Downgrade Event.

            (iii) Second Subsequent Fitch Note Downgrade Event

                  Party A will, on a reasonable efforts basis, within 30 days
                  of the occurrence of a Second Subsequent Fitch Note
                  Downgrade Event, at its own cost, either:

                  (A)   transfer all of its rights and obligations with
                        respect to this Agreement to a replacement third party
                        whose long-term, unsecured and unsubordinated debt
                        ratings are rated at least as high as "A+" (or its
                        equivalent) by Fitch, and whose short-term, unsecured
                        and unsubordinated debt ratings are rated at least as
                        high as "F1" (or its equivalent) by Fitch or such
                        other rating as is commensurate with the rating
                        assigned to the Issuer Notes by Fitch from time to
                        time; or

                  (B)   procure another person to become co-obligor or
                        guarantor in respect of the obligations of Party A
                        under this Agreement whose long-term, unsecured and
                        unsubordinated debt ratings are rated at least as high
                        as "A+" (or its equivalent) by Fitch, and whose
                        short-term, unsecured and unsubordinated debt ratings
                        are rated at least as high as "F1" (or its equivalent)
                        by Fitch or such other rating as is commensurate with
                        the rating assigned to the Issuer Notes by Fitch from
                        time to time; or

                  (C)   take such other action as Party A may agree with Fitch
                        as will result in the rating of the Issuer Notes then
                        outstanding being maintained, or obtain confirmation
                        from Fitch that there is no adverse effect on the
                        rating of the Issuer Notes as a result of that Second
                        Subsequent Fitch Downgrade Event so that none of the
                        courses of action outlined at (m)(iii)(A) or
                        (m)(iii)(B) above need be pursued in respect of such
                        Second Subsequent Fitch Downgrade Event.

            (iv)  Second Subsequent Fitch Note Downgrade Event - Collateral
                  Requirements

                  Pending compliance with any of sub-paragraphs (m)(iii)(A),
                  (m)(iii)(B) or (m)(iii)(C) above, Party A will provide, at
                  its own cost, within 10 days of such Second Subsequent Fitch
                  Note Downgrade Event or 30 days of the occurrence of First
                  Subsequent Fitch Note Downgrade Event, whichever is the
                  earlier, collateral in the form of cash or securities or
                  both, in support of its obligations under this Agreement in
                  accordance with the provisions of the Credit Support Annex;
                  provided that, if at the time when an Initial Fitch Note
                  Downgrade Event or a First Subsequent Fitch Note Downgrade
                  Event, as the case may be, occurs Party A has provided
                  collateral pursuant to the Credit Support Annex pursuant to
                  sub-paragraphs (m)(i)(A) or (m)(ii)(A) above, it will
                  continue to provide collateral notwithstanding the
                  occurrence of a Second Subsequent Fitch Note Downgrade
                  Event; provided further that in either case, the
                  mark-to-market calculations and the correct and timely
                  provision of collateral thereunder are verified by an

                                      38
<PAGE>

                  independent third party (with the costs of such independent
                  verification being borne by Party A).

                  If any of sub-paragraphs (m)(iii)(A), (m)(iii)(B) or
                  (m)(iii)(C) above are satisfied at any time, all collateral
                  (or the equivalent thereof, as appropriate) transferred by
                  Party A pursuant to this sub-paragraph (m)(iv) will be
                  transferred back to Party A and Party A will not be required
                  to transfer any additional collateral as a consequence of
                  the particular Second Subsequent Fitch Note Downgrade Event.

            (v)   Additional Termination Events

                  If Party A does not take any of the measures described in
                  sub-paragraphs (m)(i), (m)(ii) or (m)(iii) above such
                  failure shall not be or give rise to an Event of Default but
                  shall constitute an Additional Termination Event with
                  respect to Party A and shall be deemed to have occurred on
                  the thirtieth day following such Initial Fitch Note
                  Downgrade Event, First Subsequent Fitch Note Downgrade Event
                  or Second Subsequent Fitch Note Downgrade Event, as the case
                  may be, with Party A as the sole Affected Party.

                  However, in the event that Party B were to designate an
                  Early Termination Date and there would be a payment due to
                  Party A, Party B may only designate such an Early
                  Termination Date in respect of an Additional Termination
                  Event under this sub-paragraph (m)(v) if Party B has found a
                  replacement counterparty willing to enter a new transaction
                  with Party B on terms that reflect as closely as reasonably
                  possible (as the Note Trustee, on behalf of Party B, may, in
                  its absolute discretion, determine) the economic, legal and
                  credit terms of the Terminated Transactions with Party A.

            (vi)  Fitch Definitions

                  For the purposes of this Part 5(m):

                  an "Initial Fitch Note Downgrade Event" will occur where,
                  the long-term, unsecured and unsubordinated debt obligations
                  of Party A (or its successor) or, if relevant, any guarantor
                  of Party A's obligations under this Agreement (or its
                  successor) cease to be rated at least as high as "A+" (or
                  its equivalent) by Fitch, and the short-term, unsecured and
                  unsubordinated debt obligations of Party A (or its
                  successor) or any guarantor of Party A's obligations under
                  this Agreement (or its successor), cease to be rated at
                  least as high as "F1" (or its equivalent) by Fitch;

                  a "First Subsequent Fitch Note Downgrade Event" will occur
                  where, the long-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) or, if relevant,
                  any guarantor of Party A's obligations under this

                                      39
<PAGE>

                  Agreement (or its successor), cease to be rated at least as
                  high as "BBB+" (or its equivalent) by Fitch, and the
                  short-term, unsecured and unsubordinated debt obligations of
                  Party A (or its successor) or any guarantor of Party A's
                  obligations under this Agreement (or its successor), cease
                  to be rated at least as high as "F2" (or its equivalent) by
                  Fitch; and

                  a "Second Subsequent Fitch Note Downgrade Event" will occur
                  where, the long-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) or, if relevant,
                  any guarantor of Party A's obligations under this Agreement
                  (or its successor), cease to be rated at least as high as
                  "BBB-" (or its equivalent) by Fitch, and the short-term,
                  unsecured and unsubordinated debt obligations of Party A (or
                  its successor) or any guarantor of Party A's obligations
                  under this Agreement (or its successor), cease to be rated
                  at least as high as "F3" (or its equivalent) by Fitch.

      (n)   Additional Section 3 and Tax Deductibility Representations

            (i)   Section 3 is amended by the addition at the end thereof of
                  the following additional representation:-

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

            (ii)  Party A represents to Party B (which representation will be
                  deemed to be repeated by Party A on each date on which a
                  Transaction is entered into) that its obligations under this
                  Agreement rank pari passu with all of its other unsecured,
                  unsubordinated obligations except those obligations
                  preferred by operation of law.

            (iii) The following representation (the "Additional Tax
                  Representation") will apply to Party A and will not apply to
                  Party B and will be deemed to be repeated by Party A at all
                  times until the termination of this Agreement.

                  "(h) Residence. Party A represents, warrants and undertakes
                  to Party B that in relation to each Transaction, either:

                  (A)   it is resident in the United Kingdom for United
                        Kingdom tax purposes, or

                  (B)   the conditions of Paragraph 31(6) or Paragraph 31(7)
                        of Schedule 26 of the Finance Act 2002 (in each case
                        as amended or re-enacted from time to time) are
                        satisfied with respect to the relevant Transaction."

      (o)   Recording of Conversations

            Each party: (i) consents to the recording of telephone
            conversations between the trading, marketing and other relevant
            personnel of the parties in connection with this Agreement or any
            potential Transaction, (ii) agrees to obtain any necessary consent
            of, and give any necessary notice of such recording to, its
            relevant personnel, and (iii) agrees, to the extent permitted by
            applicable law, that recordings may be submitted in evidence in
            any Proceedings relating to this Agreement.

                                      40
<PAGE>

      (p)   Relationship between the parties

            The Agreement is amended by the insertion after Section 14 of an
            additional Section 15, reading in its entirety as follows:

            "15. Relationship between the parties

            Each party will be deemed to represent to the other party on the
            date on which it enters into a Transaction that (absent a written
            agreement between the parties that expressly imposes affirmative
            obligations to the contrary for that Transaction):-

            (i)   Non Reliance. It is acting for its own account, and it has
                  made its own decisions to enter into that Transaction and as
                  to whether that Transaction is appropriate or proper for it
                  based upon its own judgment and advice from such advisers as
                  it has deemed necessary. It is not relying on any
                  communication (written or oral) of the other party as
                  investment advice or as a recommendation to enter into that
                  Transaction; it being understood that information and
                  explanations related to the terms and conditions of a
                  Transaction shall not be considered investment advice or a
                  recommendation to enter into that Transaction. It has not
                  received from the other party any assurance or guarantee as
                  to the expected results of that Transaction.

            (ii)  Assessment and Understanding. It is capable of assessing the
                  merits of and understanding (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) Status of Parties. The other party is not acting as a
                  fiduciary for or an adviser to it in respect of that
                  Transaction."

      (q)   Tax

            The Agreement is amended by deleting Section 2(d) in its entirety
            and replacing it with the following:

            "(d)  Deduction or Withholding for Tax

            (i)   Requirement to Withhold

                  All payments under this Agreement will be made without any
                  deduction or withholding for or on account of any Tax unless
                  such deduction or withholding is required (including, for
                  the avoidance of doubt, if such deduction or withholding is
                  required in order for the payer to obtain relief from Tax)
                  by any applicable law, as modified by the practice of any
                  relevant governmental revenue authority, then in effect. If
                  a party ("X") is so required to deduct or withhold, then
                  that party (the "Deducting Party"):-

                                      41
<PAGE>

                  (A)   will promptly notify the other party ("Y") of such
                        requirement;

                  (B)   will pay to the relevant authorities the full amount
                        required to be deducted or withheld (including the
                        full amount required to be deducted or withheld from
                        any Gross Up Amount (as defined below) paid by the
                        Deducting Party to Y under this Section 2(d)) promptly
                        upon the earlier of determining that such deduction or
                        withholding is required or receiving notice that such
                        amount has been assessed against Y;

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

                  (D)   if X is Party A, X will promptly pay in addition to
                        the payment to which Party B is otherwise entitled
                        under this Agreement, such additional amount (the
                        "Gross Up Amount") as is necessary to ensure that the
                        net amount actually received by Party B will equal the
                        full amount which Party B would have received had no
                        such deduction or withholding been required.

            (ii)  Liability

                  If:

                  (A)   X is required by any applicable law, as modified by
                        the practice of any relevant governmental revenue
                        authority, to make any deduction or withholding for or
                        on account of any Tax in respect of payments under
                        this Agreement; and

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

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

                  then, except to the extent that Y has satisfied or then
                  satisfies the liability resulting from such Tax, (A) where X
                  is Party B, Party A will promptly pay to Party B the amount
                  of such liability (the "Liability Amount") (including any
                  related liability for interest and together with an amount
                  equal to the Tax payable by Party B on receipt of such
                  amount but including any related liability for penalties
                  only if Party A has failed to comply with or perform any
                  agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d))
                  and Party B will promptly pay to the relevant government
                  revenue authority the amount of such liability (including
                  any related liability for interest and penalties) and (B)
                  where X is Party A and Party A would have been required to
                  pay a Gross Up Amount to Party B, Party A will promptly pay
                  to the relevant government revenue authority the amount of
                  such liability (including any related liability for interest
                  and penalties).

            (iii) Tax Credit, etc.

                                      42
<PAGE>

            (a)   Where Party A pays an amount in accordance with Section
                  2(d)(i)(D) or 2(d)(ii)(C) above, Party B undertakes as
                  follows:-

                  (1)   to the extent that Party B obtains any Tax credit,
                        allowance, set-off or repayment from the tax
                        authorities of any jurisdiction relating to any
                        deduction or withholding giving rise to such payment
                        or in the case of Section 2(d)(ii)(B) the amount to be
                        assessed ("Tax Credit"), it shall pay to Party A on
                        the next Note Interest Payment Date after receipt of
                        the same so much of the cash benefit (as determined in
                        accordance with sub-paragraph (iii)(a)(2) below)
                        relating thereto which it has received as will leave
                        Party B in substantially the same (but in any event no
                        worse) position as Party B would have been in if no
                        such deduction or withholding had been required or the
                        amount had not been so assessed;

                  (2)   the "cash benefit" shall, in the case of credit,
                        allowance or set-off, be the additional amount of Tax
                        which would have been payable by Party B in the
                        jurisdiction referred to in sub-paragraph (iii)(a)(1)
                        above but for the obtaining by it of the said Tax
                        credit, allowance or set-off and, in the case of a
                        repayment, shall be the amount of the repayment
                        together, in either case, with any related interest or
                        similar payment obtained by Party B; and

                  (3)   it will use all best endeavours to obtain any Tax
                        Credit as soon as is reasonably practicable, provided
                        that it shall be the sole judge of the amount of any
                        such Tax Credit and of the date on which the same is
                        received and shall not be obliged to disclose to Party
                        A any information regarding its tax affairs or tax
                        computations save that Party B shall, upon request by
                        Party A, supply Party A with a reasonably detailed
                        explanation of its calculation of the amount of any
                        such Tax Credit and of the date on which the same is
                        received.

                  (4)   Without prejudice to this Part 5(q)(iii), nothing
                        contained in this Schedule shall interfere with the
                        right of Party B (or any of its members) or Party A to
                        arrange its tax and other affairs in whatever manner
                        it thinks fit and, in particular, neither Party B (nor
                        any of its members) nor Party A shall be under any
                        obligation to claim relief from Tax on its corporate
                        profits, or from any similar Tax liability or to claim
                        relief in priority to any other claims, reliefs,
                        credits or deductions available to it. Neither Party B
                        (or any of its members) nor Party A shall be obliged
                        (other than as required by law) to disclose any
                        confidential information relating to the organisation
                        of its affairs.

                        The definition of "Indemnifiable Tax" in Section 14
                        shall be deleted and the following shall be
                        substituted therefor:

                                      43
<PAGE>

                      "Indemnifiable Tax" means any Tax."

      (r)   Change of Account

            Section 2(b) of this Agreement is hereby amended by the addition
            of the following at the end thereof:

            "; provided that such new account shall be in the same legal and
            tax jurisdiction as the original account and such new account, in
            the case of Party B, is held with a financial institution with a
            long-term unsecured and unsubordinated debt obligation rating of
            at least "A1" by Moody's and a short-term unsecured,
            unsubordinated and unguaranteed debt obligation rating of at least
            "P-1" by Moody's and "A-1+" by S&P."

      (s)   Condition Precedent

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

      (t)   Representations

            (i)   Section 3(a)(v) shall be amended by the addition of the
                  words "(with the exception of Section 11 insofar as it
                  relates to any Stamp Tax)" after the words "this Agreement".

            (ii)  Section 3(b) shall be amended by the deletion of the words
                  "or Potential Event of Default" in respect of the
                  representation given by Party B only.

      (u)   Transfers

            (i)   Section 7 of this Agreement shall not apply to Party A, who
                  shall be required to comply with, and shall be bound by, the
                  following:

                  Without prejudice to Section 6(b)(ii) Party A may transfer
                  all its interest and obligations in and under this Agreement
                  to any other entity (a "Transferee"), provided that:

                  (a)   it has given five Local Business Days prior written
                        notice to the Note Trustee;

                  (b)   the Transferee's long-term, unsecured and
                        unsubordinated debt obligations are then rated not
                        less than "A1" by Moody's and its short-term,
                        unsecured and unsubordinated debt obligations are then
                        rated not less than "P-1" by Moody's, "A-1+" by S&P
                        and "F1" by Fitch (or its equivalent by any substitute
                        rating agency) or such Transferee's obligations under
                        this Agreement are guaranteed by an entity whose
                        long-term, unsecured and unsubordinated debt

                                      44
<PAGE>

                        obligations are then rated not less than "A1" by
                        Moody's and whose short-term, unsecured and
                        unsubordinated debt obligations are then rated not
                        less than "P-1" by Moody's, "A-1+" by S&P and "F1"by
                        Fitch (or its equivalent by any substitute rating
                        agency);

                  (c)   as of the date of such transfer the Transferee will
                        not, as a result of such transfer, be required to
                        withhold or deduct on account of Tax under this
                        Agreement;

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

                  (e)   no additional amount will be payable by Party B to
                        Party A or the Transferee on the next succeeding
                        Scheduled Payment Date as a result of such transfer;
                        and

                  (f)   (if the Transferee is domiciled in a different country
                        from both Party A and Party B) S&P, Moody's and Fitch
                        have provided prior written notification that the then
                        current ratings of the Issuer Notes will not be
                        adversely affected.

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

      (v)   Contracts (Rights of Third Parties) Act 1999

            A person who is not a party to this Agreement shall have no right
            under the Contracts (Rights of Third Parties) Act 1999 to enforce
            any of its terms but this shall not affect any right or remedy of
            a third party which exists or is available apart from that Act.

      (w)   Calculations if an Early Termination Date occurs as a result of an
            Event of Default or Additional Termination Event where Party A is
            the Defaulting Party or the sole Affected Party.

            Subject to compliance with clause 14.3(m) (Issuer Swap Agreements)
            of the Issuer Deed of Charge, upon the occurrence of an Event of
            Default or an Additional Termination Event where Party A is the
            Defaulting Party or the sole Affected Party, as applicable, Party
            B will be entitled (but not obliged in the event that it does not
            designate an Early Termination Date) to proceed in accordance with
            Section 6 of the Agreement subject to the following:

            (i)   For the purposes of Section 6(d)(i) of this Agreement, Party
                  B's obligation with respect to the extent of information to
                  be provided with its calculations is limited to information
                  Party B has already received in writing and provided Party B
                  is able to release this information without breaching the
                  provisions of any law applicable to, or any contractual
                  restriction binding upon, Party B.

            (ii)  The following amendments shall be deemed to be made to the
                  definitions of "Market Quotation":

                                      45
<PAGE>

                  (a)   the word "firm" shall be added before the word
                        "quotations" in the second line; and

                  (b)   the words "provided that the documentation relating
                        thereto is either the same as this Agreement and the
                        Confirmations with respect to the Terminated
                        Transactions (and the long-term unsecured and
                        unsubordinated debt obligations of the Reference
                        Market-maker are rated not less than "A1" by Moody's,
                        and its short-term, unsecured and unsubordinated debt
                        obligations are rated not less than "P-1" by Moody's,
                        "A-1+" by S&P and "F1" by Fitch (or, if such Reference
                        Market-maker is not rated by a Rating Agency, at such
                        equivalent rating (by another rating agency) that is
                        acceptable to each such Rating Agency) or the Rating
                        Agencies have confirmed in writing such proposed
                        documentation will not adversely impact the ratings of
                        the Issuer Notes" shall be added after "agree" in the
                        sixteenth line; and

                  (c)   the last sentence shall be deleted and replaced with
                        the following:

                        "If, on the last date set for delivery of quotations,
                        exactly two quotations are provided, the Market
                        Quotation will be the arithmetic mean of the two
                        quotations. If only one quotation is provided on such
                        date, Party B may, in its discretion, accept such
                        quotation as the Market Quotation and if Party B does
                        not accept such quotation (or if no quotation has been
                        provided), it will be deemed that the Market Quotation
                        in respect of the Terminated Transaction cannot be
                        determined."

            (iii) For the purpose of the definition of "Market Quotation", and
                  without limitation of the general rights of Party B under
                  the Agreement:

                  (A)   Party B will undertake to use its reasonable efforts
                        to obtain at least three firm quotations as soon as
                        reasonably practicable after the Early Termination
                        Date and in any event within the time period specified
                        pursuant to sub-paragraph (w)(iii)(C) below;

                  (B)   Party A shall, for the purposes of Section 6(e), be
                        permitted to obtain quotations from Reference
                        Market-makers; and

                  (C)   if no quotations have been obtained within six Local
                        Business Days after the occurrence of the Early
                        Termination Date or such longer period as Party B may
                        specify in writing to Party A, then it will be deemed
                        that the Market Quotation in respect of the Terminated
                        Transaction cannot be determined.

            (iv)  Party B will be deemed to have discharged its obligations
                  under sub-paragraph (w)(iii)(A) above if it requests that
                  Party A (such request to be in writing and made within two
                  Local Business Days after the occurrence of the Early
                  Termination Date) obtains quotations from Reference
                  Market-makers and Party A agrees to act in accordance with
                  such request.

                                      46
<PAGE>

            (v)   Party B will not be obliged to consult with Party A as to
                  the day and time of obtaining any quotations.

      (x)   Misrepresentation

            Section 5(a)(iv) (Misrepresentation) of this Agreement shall be
            deemed to be amended by the addition of the words "and 3(h)" after
            the words "Section 3(e) and (f)" in the first line thereof.

                                      47
<PAGE>

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

                             CREDIT SUPPORT ANNEX

                            to the Schedule to the

                             ISDA Master Agreement

         dated as of the Effective Date specified in the Confirmation

                                    between

DEUTSCHE BANK AG, LONDON BRANCH        and           GRANITE MASTER ISSUER plc
         ("Party A")                                         ("Party B")

This Annex supplements, forms part of, and is subject to, the ISDA Master
Agreement referred to above and is part of its Schedule. For the purposes of
this Agreement, including, without limitation, Sections 1(c), 2(a), 5 and 6,
the credit support arrangements set out in this Annex constitute a Transaction
(for which this Annex constitutes the Confirmation).

Paragraph 1. Interpretation

Capitalised terms not otherwise defined in this Annex or elsewhere in this
Agreement have the meanings specified pursuant to Paragraph 10, and all
references in this Annex to Paragraphs are to Paragraphs of this Annex. In the
event of any inconsistency between this Annex and the other provisions of this
Schedule, this Annex will prevail, and in the event of any inconsistency
between Paragraph 11 and the other provisions of this Annex, Paragraph 11 will
prevail. For the avoidance of doubt, references to "transfer" in this Annex
mean, in relation to cash, payment, and in relation to the assets, delivery.

Paragraph 2.  Credit Support Obligations

(a) Delivery Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferee on or promptly following a Valuation Date, if the Delivery Amount
for that Valuation Date equals or exceeds the Transferor's Minimum Transfer
Amount, then the Transferor will transfer to the Transferee Eligible Credit
Support having a Value as of the date of transfer at least equal to the
applicable Delivery Amount (rounded pursuant to Paragraph 11(b)(iii)(D)).
Unless otherwise specified in Paragraph 11(b), the "Delivery Amount"
applicable to the Transferor for any Valuation Date will equal the amount by
which:

      (i)   the Credit Support Amount

<PAGE>

      exceeds

      (ii) the Value as of that Valuation Date of the Transferor's Credit
      Support Balance (adjusted to include any prior Delivery Amount and to
      exclude any prior Return Amount, the transfer of which, in each case,
      has not yet been completed and for which the relevant Settlement Day
      falls on or after such Valuation Date).

(b) Return Amount. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferor on or promptly following a Valuation Date, if the Return Amount for
that Valuation Date equals or exceeds the Transferee's Minimum Transfer
Amount, then the Transferee will transfer to the Transferor Equivalent Credit
Support specified by the Transferor in that demand having a Value as of the
date of transfer as close as practicable to the applicable Return Amount
(rounded pursuant to Paragraph 11(b)(iii)(D)) and the Credit Support Balance
will, upon such transfer, be reduced accordingly. Unless otherwise specified
in Paragraph 11(b), the "Return Amount" applicable to the Transferee for any
Valuation Date will equal the amount by which:

      (i) the Value as of that Valuation Date of the Transferor's Credit
      Support Balance (adjusted to include any prior Delivery Amount and to
      exclude any prior Return Amount, the transfer of which, in each case,
      has not yet been completed and for which the relevant Settlement Day
      falls on or after such Valuation Date).

      exceeds

      (ii) the Credit Support Amount.

Paragraph 3. Transfers, Calculations and Exchanges

(a) Transfers. All transfers under this Annex of any Eligible Credit Support,
Equivalent Credit Support, Interest Amount or Equivalent Distributions shall
be made in accordance with the instructions of the Transferee or Transferor,
as applicable, and shall be made:

      (i) in the case of cash, by transfer into one or more bank accounts
      specified by the recipient;

      (ii) in the case of certificated securities which cannot or which the
      parties have agreed will not be delivered by book-entry, by delivery in
      appropriate physical form to the recipient or its account accompanied by
      any duly executed instruments of transfer, transfer tax stamps and any
      other documents necessary to constitute a legally valid transfer of the
      transferring party's legal and beneficial title to the recipient; and

      (iii) in the case of securities which the parties have agreed will be
      delivered by book-entry, by the giving of written instructions
      (including, for the avoidance of doubt, instructions given by telex,
      facsimile transmission or electronic messaging system) to the relevant
      depository institution or other entity specified by the recipient,
      together with a written copy of the instructions to the recipient,
      sufficient, if complied with, to result in a legally effective transfer
      of the transferring party's legal and beneficial title to the recipient.

Subject to Paragraph 4 and unless otherwise specified, if a demand for the
transfer of Eligible Credit Support or Equivalent Credit Support is received
by the Notification Time, then the

<PAGE>

relevant transfer will be made not later than the close of business on the
Settlement Day relating to the date such demand is received; if a demand is
received after the Notification Time, then the relevant transfer will be made
not later than the close of business on the Settlement Day relating to the day
after the date such demand is received.

(b) Calculations. All calculations of Value and Exposure for purposes of
Paragraphs 2 and 4(a) will be made by the relevant Valuation Agent as of the
relevant Valuation Time. The Valuation Agent will notify each party (or the
other party, if the Valuation Agent is a party) of its calculations not later
than the Notification Time on the Local Business Day following the applicable
Valuation Date (or, in the case of Paragraph 4(a), following the date of
calculation).

(c)   Exchanges.

      (i) Unless otherwise specified in Paragraph 11, the Transferor may on
      any Local Business Day by notice inform the Transferee that it wishes to
      transfer to the Transferee Eligible Credit Support specified in that
      notice (the "New Credit Support") in exchange for certain Eligible
      Credit Support (the "Original Credit Support") specified in that notice
      comprised in the Transferor's Credit Support Balance.

      (ii) If the Transferee notifies the Transferor that it has consented to
      the proposed exchange, (A) the Transferor will be obliged to transfer
      the New Credit Support to the Transferee on the first Settlement Day
      following the date on which it receives notice (which may be oral
      telephonic notice) from the Transferee of its consent and (B) the
      Transferee will be obliged to transfer to the Transferor Equivalent
      Credit Support in respect of the Original Credit Support not later than
      the Settlement Day following the date on which the Transferee receives
      the New Credit Support, unless otherwise specified in Paragraph 11(d)
      (the "Exchange Date"); provided that the Transferee will only be obliged
      to transfer Equivalent Credit Support with a Value as of the date of
      transfer as close as practicable to, but in any event not more than, the
      Value of the New Credit Support as of that date.

Paragraph 4. Dispute Resolution

(a) Disputed Calculations or Valuations. If a party (a "Disputing Party")
reasonably disputes (I) the Valuation Agent's calculation of a Delivery Amount
or a Return Amount or (II) the Value of any transfer of Eligible Credit
Support or Equivalent Credit Support, then:

      (1) the Disputing Party will notify the other party and the Valuation
      Agent (if the Valuation Agent is not the other party) not later than the
      close of business on the Local Business Day following, in the case of
      (I) above, the date that the demand is received under Paragraph 2 or, in
      the case of (II) above, the date of transfer;

      (2) in the case of (I) above, the appropriate party will transfer the
      undisputed amount to the other party not later than the close of
      business on the Settlement Day following the date that the demand is
      received under Paragraph 2;

      (3) the parties will consult with each other in an attempt to resolve
      the dispute; and

      (4) if they fail to resolve the dispute by the Resolution Time. then:

<PAGE>

            (i) in the case of a dispute involving a Delivery Amount or Return
            Amount, unless otherwise specified in Paragraph 11(c), the
            Valuation Agent will recalculate the Exposure and the Value as of
            the Recalculation Date by:

                  (A) utilising any calculations of that part of the Exposure
                  attributable to the Transactions that the parties have
                  agreed are not in dispute;

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

                  (C) utilising the procedures specified in Paragraph
                  11(e)(ii) for calculating the Value, if disputed, of the
                  outstanding Credit Support Balance;

            (ii) in the case of a dispute involving the Value of any transfer
            of Eligible Credit Support or Equivalent Credit Support, the
            Valuation Agent will recalculate the Value as of the date of
            transfer pursuant to Paragraph 11(e)(ii).

Following a recalculation pursuant to this Paragraph, the Valuation Agent will
notify each party (or the other party, if the Valuation Agent is a party) as
soon as possible but in any event not later than the Notification Time on the
Local Business Day following the Resolution Time. The appropriate party will,
upon demand following such notice given the Valuation Agent or resolution
pursuant to (3) above and subject to Paragraph 3(a), make the appropriate
transfer.

(b) No Event of Default. The failure by a party to make a transfer of any
amount which is the subject of a dispute to which Paragraph 4(a) applies will
not constitute an Event of Default for as long as the procedures set out in
this Paragraph 4 are being carried out. For the avoidance of doubt, upon
completion of those procedures, Section 5(a)(i) of this Agreement will apply
to any failure by a party to make a transfer required under the final sentence
of Paragraph 4(a) on the relevant due date.

Paragraph 5. Transfer of Title, No Security Interest, Distributions and
Interest Amount

(a) Transfer of Title. Each party agrees that all right, title and interest in
and to any Eligible Credit Support, Equivalent Credit Support, Equivalent
Distributions or Interest Amount which it transfers to the other party under
the terms of this Annex shall vest in the recipient free and clear of any
liens, claims, charges or encumbrances or any other interest of the
transferring party or of any third person (other than a lien routinely imposed
on all securities in a relevant clearance system).

(b) No Security Interest. Nothing in this Annex is intended to create or does
create in favour of either party any mortgage, charge, lien, pledge,
encumbrance or other security interest

<PAGE>

in any cash or other property transferred by one party to the other party
under the terms of this Annex.

(c)   Distributions and Interest Amount.

      (i) Distributions. The Transferee will transfer to the Transferor not
      later than the Settlement Day following each Distributions Date cash,
      securities or other property of the same type, nominal value,
      description and amount as the relevant Distributions ("Equivalent
      Distributions") to the extent that a Delivery Amount would not be
      created or increased by the transfer, as calculated by the Valuation
      Agent (and the date of calculation will be deemed a Valuation Date for
      this purpose).

      (ii) Interest Amount. Unless otherwise specified in Paragraph
      11(f)(iii), the Transferee will transfer to the Transferor at the times
      specified in Paragraph 11(f)(ii) the relevant Interest Amount to the
      extent that a Delivery Amount would not be created or increased by the
      transfer, as calculated by the Valuation Agent (and the date of
      calculation will be deemed a Valuation Date for this purpose).

Paragraph 6. Default

If any Early Termination Date is designated or deemed to occur as a result of
an Event of Default in relation to a party, an amount equal to the Value of
the Credit Support Balance, determined as though the Early Termination Date
were a Valuation Date, will be deemed to be an Unpaid Amount due to the
Transferor (which may or may not be the Defaulting Party) for purposes of
Section 6(e). For the avoidance of doubt, if Market Quotation is the
applicable payment measure for purposes of Section 6(e), then the Market
Quotation determined under Section 6(e) in relation to the Transaction
constituted by this Annex will be deemed to be zero, and if Loss is the
applicable payment measure for purposes of Section 6(e), then the Loss
determined under Section 6(e) in relation to the Transaction will be limited
to the Unpaid Amount representing the Value of the Credit Support Balance.

Paragraph 7. Representation

Each party represents to the other party (which representation will be deemed
to be repeated as of each date on which it transfers Eligible Credit Support,
Equivalent Credit Support or Equivalent Distributions) that is the sole owner
of or otherwise has the right to transfer all Eligible Credit Support,
Equivalent Credit Support or Equivalent Distributions it transfers to the
other party under this Annex, free and clear of any security interest, lien
encumbrance or other restriction (other than lien routinely imposed on all
securities in a relevant clearance system).

Paragraph 8. Expenses

Each party will pay its own costs and expenses (including any stamp, transfer,
or similar transaction tax or duty payable on any transfer it is required to
make under this Annex) in connection with performing its obligations under
this Annex, and neither party will be liable for any such costs and expenses
incurred by the other party.

Paragraph 9. Miscellaneous

<PAGE>

(a) Default Interest. Other than in the case of an amount which is the subject
of dispute under Paragraph 4(a), if a Transferee fails to make, when due, any
transfer of Equivalent Credit Support, Equivalent Distributions or the
Interest Amount, it will be obliged to pay the Transferor (to the extent
permitted under applicable law) an amount equal to interest at the Default
Rate multiplied by the Value on the relevant Valuation Date of the items of
property that were required to be transferred, from (and including) the date
that the Equivalent Credit Support, Equivalent Distributions or Interest
Amount were required to be transferred to (but excluding) the date of transfer
of the Equivalent Credit Support, Equivalent Distributions or Interest Amount.
This interest will be calculated on the basis of daily compounding and the
actual number of days elapsed.

(b) Good Faith and Commercially Reasonable Manner. Performance of all
obligations under this Annex, including, but not limited to, all calculations,
valuations and determinations made by either party, will be made in good faith
and in a commercially reasonable manner.

(c) Demands and Notices. All demands and notices given by a party under this
Annex will be given as specified in Section 12 of this Agreement.

(d) Specifications of Certain Matters. Anything referred to in this Annex as
being specified in Paragraph 11 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.

Paragraph 10. Definitions

As used in this Annex:

"Base Currency" means the currency specified as such in Paragraph 11(a)(i).

"Base Currency Equivalent" means, with respect to an amount on a Valuation
Date, in the case of an amount denominated in the Base Currency, such Base
Currency and, in the case of an amount denominated in a currency other than
the Base Currency (the "Other Currency"), the amount of Base Currency required
to purchase such amount of the Other Currency at the spot exchange rate
determined by the Valuation Agent for value on such Valuation Date.

"Credit Support Amount" means, with respect to a Transferor on a Valuation
Date, (i) the Transferee's Exposure plus (ii) all Independent Amounts
applicable to the Transferor, if any, minus (iii) all Independent Amounts
applicable to the Transferee, if any, minus (iv) the Transferor's Threshold;
provided, however, that the Credit Support Amount will be deemed to be zero
whenever the calculation of Credit Support Amount yields a number less than
zero.

"Credit Support Balance" means, with respect to a Transferor on a Valuation
Date, the aggregate of all Eligible Credit Support that has been transferred
to or received by the Transferee under this Annex, together with any
Distributions and all proceeds of any such Eligible Credit Support or
Distributions, as reduced pursuant to Paragraph 2(b), 3(c)(ii) or 6. Any
Equivalent Distributions or Interest Amount (or portion of either) not
transferred pursuant to Paragraph 5(c)(i) or (ii) will form part of the Credit
Support Balance.

"Delivery Amount" has the meaning specified in Paragraph 2(a).

"Disputing Party" has the meaning specified in Paragraph 4.

<PAGE>

"Distributions" means, with respect to any Eligible Credit Support comprised
in the Credit Support Balance consisting of securities, all principal,
interest and other payments and distributions of cash or other property to
which a holder of securities of the same type, nominal value, description and
amount as such Eligible Credit Support would be entitled from time to time.

"Distribution Date" means, with respect to any Eligible Credit Support
comprised in the Credit Support Balance other than cash, each date on which a
holder of such Eligible Credit Support is entitled to receive Distributions
or, if that date is not a Local Business Day, the next following Local
Business Day.

"Eligible Credit Support" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 11(b)(ii) including, in relation
to any securities, if applicable, the proceeds of any redemption in whole or
in party of such securities by the relevant issuer.

"Eligible Currency" means each currency specified as such in Paragraph
11(a)(ii), if such currency is freely available.

"Equivalent Credit Support" means, in relation to any Eligible Credit Support
comprised in the Credit Support Balance, Eligible Credit Support of the same
type, nominal value, description and amount as that Eligible Credit Support.

"Equivalent Distributions" has the meaning specified in Paragraph 5(c)(i).

"Exchange Date" has the meaning specified in Paragraph 11(d).

"Exposure" means, with respect to a party on a Valuation Date and subject to
Paragraph 4 in the case of a dispute, 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 (other than the
Transaction constituted by this Annex) were being terminated as of the
relevant Valuation Time, on the basis that (i) that party is not the Affected
Party and (ii) the Base Currency is the Termination Currency; provided that
Market Quotations will be determined by the Valuation Agent on behalf of that
party using its estimates at mid-market of the amounts that would be paid for
Replacement Transactions (as that term is defined in the definition of "Market
Quotation").

"Independent Amount" means, with respect to a party, the Base Currency
Equivalent of the amount specified as such for that party in Paragraph
11(b)(iii)(A); if not amount is specified, zero.

"Interest Amount" means, with respect to an Interest Period, the aggregate sum
of the Base Currency Equivalents of the amounts of interest determined for
each relevant currency and calculated for each day in that Interest Period on
the principal amount of the portion of the Credit Support Balance comprised of
cash in such currency, determined by the Valuation Agent for each such day as
follows:

      (x) the amount of cash in such currency on that day; multiplied by

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

<PAGE>

      (z) 360 (or, in the case of pounds sterling, 365).

"Interest Period" means the period from (and including) the last Local
Business Day on which an Interest Amount was transferred (or, if no Interest
Amount has yet been transferred, the Local Business Day on which Eligible
Credit Support or Equivalent Credit Support in the form of cash was
transferred to or received by the Transferee) to (but excluding) the Local
Business Day on which the current Interest Amount is transferred.

"Interest Rate" means with respect to an Eligible Currency, the rate specified
in Paragraph 11(f)(i) for that currency.

"Local Business Day" , unless otherwise specified in Paragraph 11(h), means:

      (i) in relation to a transfer of cash or other property (other than
      securities) under this Annex, a day on which commercial banks are open
      for business (including dealings in foreign exchange and foreign
      currency deposits) 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;

      (ii) in relation to a transfer of securities under this Annex, a day on
      which the clearance system agreed between the parties for delivery of
      the securities is open for the acceptance and execution of settlement
      instructions or, if delivery of the securities is contemplated by other
      means, a day on which commercial banks are open for business (including
      dealings in foreign exchange and foreign currency deposits) in the
      place(s) agreed between the parties for this purpose.

      (iii) in relation to a valuation under this Annex, a day on which
      commercial banks are open for business (including dealings in foreign
      exchange and foreign currency deposits) in the place of location of the
      Valuation Agent and in the place(s) agreed between the parties for this
      purpose; and

      (iv) in relation to any notice or other communication under this Annex,
      a day on which commercial banks are open for business (including
      dealings in foreign exchange and foreign currency deposits) in the place
      specified in the address for notice most recently provided by the
      recipient.

"Minimum Transfer Amount" means, with respect to a party, the amount specified
as such for that party in Paragraph 11(b)(iii)(C); if no amount is specified,
zero.

"New Credit Support" has the meaning specified in Paragraph 3(c)(i).

"Notification Time" has the meaning specified in Paragraph 11(c)(iv).

"Recalculation Date" means the Valuation Date that gives rise to the dispute
under Paragraph 4; provided however, that if a subsequent Valuation Date
occurs under Paragraph 2 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 2.

"Resolution Time" has the meaning specified in Paragraph 11(c)(i).

"Return Amount" has the meaning specified in Paragraph 2(b).

<PAGE>

"Settlement Day" means, in relation to a date, (i) with respect to a transfer
of cash or other property (other than securities), the next Local Business Day
and (ii) with respect to a transfer of securities, the first Local Business
Day after such date on which settlement of a trade in the relevant securities,
if effected on such date, would have been settled in accordance with customary
practice when settling through the clearance system agreed between the parties
for delivery of such securities or, otherwise, on the market in which such
securities are principally traded (or, in either case, if there is no such
customary practice, on the first Local Business Day after such date on which
it is reasonably practicable to deliver such securities).

"Threshold" means, with respect to a party, the Base Currency Equivalent of
the amount specified as such for that party in Paragraph 11(b)(iii)(B); if no
amount is specified, zero.

"Transferee" means, in relation to each Valuation Date, the party in respect
of which Exposure is a positive number and, in relation to a Credit Support
Balance, the party which, subject to this Annex, owes such Credit Support
Balance or, as the case may be, the Value of such Credit Support Balance to
the other party.

"Transferor" means, in relation to a Transferee, the other party.

"Valuation Agent" has the meaning specified in Paragraph 11(c)(i).

"Valuation Date" means each date specified in or otherwise determined pursuant
to Paragraph 11(c)(ii).

"Valuation Percentage" means, for any item of Eligible Credit Support, the
percentage specified in Paragraph 11(b)(ii).

"Valuation Time" has the meaning specified in Paragraph 11(c)(iii).

"Value" means, for any Valuation Date or other date for which Value is
calculated, and subject to Paragraph 4 in the case of a dispute, with respect
to:

      (i)   Eligible Credit Support comprised in a Credit Support Balance that
            is:

            (A) an amount of cash, the Base Currency Equivalent of such amount
            multiplied by the applicable Valuation Percentage, if any; and

            (B) a security, the Base Currency Equivalent of the bid price
            obtained by the Valuation Agent multiplied by the applicable
            Valuation Percentage, if any; and

      (ii)  items that are comprised in a Credit Support Balance and are not
            Eligible Credit Support, zero.

<PAGE>

                                    Deutsche Bank AG/Granite Master Issuer plc
              Cross Currency/Interest Rate Paragraph 11 to the English law CSA
                                                 Agreed Form Version: 23.05.06

                           Agreed Form Paragraph 11

                             CREDIT SUPPORT ANNEX

            Elections and Variables dated as of the Effective Date
                        specified in the Confirmation
                                    Between
                        Deutsche Bank AG, London Branch
                                  ("Party A")
                                      and
                           Granite Master Issuer plc
                                  ("Party B")

Paragraph 11. Elections and Variables

(a)   Base Currency and Eligible Currency.

      (i)   "Base Currency" means Pounds Sterling.

      (ii)  "Eligible Currency" means the Base Currency and each other
            currency specified here: Euro and US Dollars.

      It is agreed by the parties that where the Credit Support Amount is
      transferred in a currency other than the Base Currency, the Valuation
      Percentage specified in Paragraph 11(b)(ii) shall be reduced by a
      percentage agreed by the parties and approved by the relevant rating
      agency ("Additional Valuation Percentage"), in respect of Moody's such
      Additional Valuation Percentage being 6% or such lower percentage as
      agreed by the parties and approved by the relevant rating agency. For
      the purpose of this Annex, references to the "relevant rating agency"
      shall mean the rating agency whose Ratings Criteria will be used to
      determine the amount of Eligible Credit Support that Party A is required
      to transfer to Party B following a credit ratings downgrade of Party A.

(b)   Credit Support Obligations.

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

            (A)   "Delivery Amount" has the meaning specified in Paragraph
                  2(a), except that the words, "upon a demand made by the
                  Transferee" shall be deleted and the word "that" on the
                  second line of Paragraph 2(a) shall be replaced with the
                  word "a".

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

            (C)   "Credit Support Amount" has the meaning specified under the
                  relevant definition of Ratings Criteria. In circumstances
                  where more than one of the Ratings Criteria apply to Party
                  A, the Credit Support Amount shall be calculated by
                  reference to the Ratings Criteria which would result in
                  Party A transferring the greatest amount of Eligible Credit
                  Support. Under no circumstances will Party A be required to
                  transfer more Eligible Credit Support than the greatest
                  amount calculated in accordance with the Ratings Criteria
                  set out below.

                                      11
<PAGE>

      (ii)  Eligible Credit Support. On any date, the following items will
            qualify as "Eligible Credit Support" for each party:

-------------------------------------------------------------------------------
                                                                   Valuation
                                                                  Percentage
-------------------------------------------------------------------------------
(A)       cash in an Eligible Currency                               100%
-------------------------------------------------------------------------------
(B)       negotiable debt obligations                               For the
          issued  after 18 July 1984 by the                       purposes of
          U.S. Treasury Department having a                      Moody's, 99%;
          residual maturity on such date of                         for the
          less than 1 year (with local and                        purposes of
          foreign currency issuer ratings of                      Fitch, the
          Aa2 or above)                                         Advanced Rate,
                                                                 if applicable
                                                                (the "Advanced
                                                                 Rate") under
                                                                  the heading
                                                                    "Notes
                                                                Rating/AAA" in
                                                                   the table
                                                                   entitled
                                                                   "Advanced
                                                                 Rates (%)" in
                                                                 Appendix 3 to
                                                                    Fitch's
                                                                  Structured
                                                                Finance Report
                                                                   entitled
                                                                 "Counterparty
                                                                    Risk in
                                                                  Structured
                                                                    Finance
                                                                 Transactions:
                                                                Swap Criteria"
                                                                   dated 13
                                                                September 2004
                                                                  (the "Fitch
                                                                  Report" as
                                                                   modified,
                                                                  updated or
                                                                 replaced from
                                                                time to time).
-------------------------------------------------------------------------------
(C)       negotiable debt obligations issued                        For the
          after 18 July 1984 by the U.S.                          purposes of
          Treasury Department having a                           Moody's, 97%;
          residual maturity on such date                            for the
          equal to or greater than 1 year                         purposes of
          but less than 5 years (with local                       Fitch, the
          and foreign currency issuer                           Advanced Rate,
          ratings of Aa2 or above)                              if applicable.
-------------------------------------------------------------------------------
(D)       negotiable debt obligations issued                        For the
          after 18 July 1984 by the U.S.                          purposes of
          Treasury Department having a                           Moody's, 95%;
          residual maturity on such date                            for the
          equal to or greater than 5 years                        purposes of
          but less than 10 years (with local                      Fitch, the
          and foreign currency issuer                           Advanced Rate,
          ratings of Aa2 or above)                              if applicable.
-------------------------------------------------------------------------------
(E)       negotiable debt obligations of the                        For the
          Federal Republic of Germany (with                       purposes of
          local and foreign currency issuer                      Moody's, 95%;
          ratings of Aa2 or above) with a                           for the
          residual maturity of less than 10                       purposes of
          years at the date of their                              Fitch, the
          transfer to the Secured Party.                        Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(F)       negotiable debt obligations of the                        For the
          Republic of France(with local and                       purposes of
          foreign currency issuer ratings of                     Moody's, 95%;
          Aa2 or above) with a residual                             for the
          maturity of less than 10 years at                       purposes of
          the date of their transfer to the                       Fitch, the
          Secured Party.                                        Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(G)       negotiable debt obligations of                            For the
          Belgium (with local and foreign                         purposes of
          currency issuer ratings of Aa2 or                      Moody's, 95%;
          above) with a residual maturity of                        for the
          less than 10 years at the date of                       purposes of
          their transfer to the Secured                           Fitch, the
          Party.                                                Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------

                                      11
<PAGE>

-------------------------------------------------------------------------------
(H)       negotiable debt obligations of the                        For the
          United Kingdom (with local and                          purposes of
          foreign currency issuer ratings of                     Moody's, 95%;
          Aa2 or above) with a residual                             for the
          maturity of less than 10 years at                       purposes of
          the date of their transfer to the                       Fitch, the
          Secured Party                                         Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(I)       negotiable debt obligations of                            For the
          Switzerland (with local and                             purposes of
          foreign currency issuer ratings of                     Moody's, 95%;
          Aa2 or above) with a residual                             for the
          maturity of less than 10 years at                       purposes of
          the date of their transfer to the                       Fitch, the
          Secured Party.                                        Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(J)       negotiable debt obligations of                            For the
          Italy    (with local and foreign                        purposes of
          currency issuer ratings of Aa2 or                      Moody's, 95%;
          above) with a residual maturity of                        for the
          less than 10 years at the date of                       purposes of
          their transfer to the Secured                           Fitch, the
          Party.                                                Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(K)       negotiable debt obligations of the                        For the
          Netherlands (with local and                             purposes of
          foreign currency issuer ratings of                     Moody's, 95%;
          Aa2 or above) with a residual                             for the
          maturity of less than 10 years at                       purposes of
          the date of their transfer to the                       Fitch, the
          Secured Party.                                        Advanced Rate,
                                                                if applicable.
-------------------------------------------------------------------------------
(L)       negotiable debt obligations of the                        For the
          US Government National Mortgage                         purposes of
          Association, the US Federal                            Moody's, 95%
          National Mortgage Association, the                        (or as
          US Federal Home Loan Mortgage                            otherwise
          Corporation, the US Student Loans                      determined by
          Marketing Association or a US                          Moody's); for
          Federal Home Loan Bank (all                            the purposes
          entities rated Aa1 or above) with                      of Fitch, the
          a residual maturity on such date                      Advanced Rate,
          equal to or greater than 1 year                       if applicable.
          but less than 3 years.
-------------------------------------------------------------------------------
(M)       negotiable debt obligations of the                        For the
          US Government National Mortgage                         purposes of
          Association, the US Federal                            Moody's, 90%
          National Mortgage Association, the                        (or as
          US Federal Home Loan Mortgage                            otherwise
          Corporation, the US Student Loans                      determined by
          Marketing Association or a US                          Moody's); for
          Federal Home Loan Bank (all                            the purposes
          entities rated Aa1 or above) with                      of Fitch, the
          a residual maturity on such date                      Advanced Rate,
          equal to or greater than 3 years                      if applicable.
          but less than 5 years.
-------------------------------------------------------------------------------
 (N)      negotiable debt obligations of the                        For the
          US Government National Mortgage                         purposes of
          Association, the US Federal                            Moody's, 87%
          National Mortgage Association, the                        (or as
          US Federal Home Loan Mortgage                            otherwise
          Corporation, the US Student Loans                      determined by
          Marketing Association or a US                          Moody's); for
          Federal Home Loan Bank (all                            the purposes
          entities rated Aa1 or above) with                      of Fitch, the
          a residual maturity on such date                      Advanced Rate,
          equal to or greater than 5 years                      if applicable.
          but less than 7 years.
-------------------------------------------------------------------------------
(O)       negotiable debt obligations of the                        For the
          US Government National Mortgage                         purposes of
          Association, the US Federal                            Moody's, 83%
          National Mortgage Association, the                        (or as
          US Federal Home Loan Mortgage                            otherwise
          Corporation, the US Student Loans                      determined by
          Marketing Association or a US                          Moody's); for
          Federal Home Loan Bank (all                            the purposes
          entities rated Aa1 or above) with                      of Fitch, the
          a residual maturity on such date                      Advanced Rate,
          equal to or greater than 7 years                      if applicable.
          but less than 10 years.
-------------------------------------------------------------------------------

Where negotiable debt obligations are rated by only one of the above relevant
rating agencies, the rating applied will be based on the rating of that
agency.

Where the ratings and/or the Valuation Percentages of the relevant rating
agencies differ with respect to the same negotiable debt obligation, for the
purposes of B to O

                                      12
<PAGE>

            above, the lower of the ratings and or Valuation Percentages, as
            the case may be, shall apply.

      (iii) Thresholds.

            (A)   "Independent Amount" means, for Party A and Party B, with
                  respect to each Transaction, zero.

            (B)   "Threshold" means, for Party A: infinity, unless either: (A)
                  (i) an Initial Moody's Note Downgrade Event and/or an
                  Initial Fitch Note Downgrade Event has occurred AND (ii)
                  Party A has not otherwise complied with Part 5(1)(i)(A), (B)
                  or (C) and/or Part 5(m)(i)(B), (C) or (D), respectively, of
                  the Agreement, OR (B) (i) a Subsequent Moody's Note
                  Downgrade Event and/or a First Subsequent Fitch Note
                  Downgrade Event and/or a Second Subsequent Fitch Note
                  Downgrade Event has occurred AND (ii) Party A has not
                  otherwise complied with Part 5(1)(ii)(A), (B) or (C) and/or
                  Part 5 (m)(ii)(B), (C) or (D) or Part 5(m)(iii)(A), (B) or
                  (C) respectively, of the Agreement,

                  then its Threshold shall be zero,

                  "Threshold" means, for Party B: infinity

            (C)   "Minimum Transfer Amount" means, with respect to Party A and
                  Party B, GBP10,000; provided, that if (1) an Event of
                  Default has occurred and is continuing with respect to Party
                  A, or (2) an Additional Termination Event has occurred in
                  respect of which Party A is an Affected Party, the Minimum
                  Transfer Amount with respect to Party A shall be zero.

            (D)   "Rounding". The Delivery Amount and the Return Amount will
                  be rounded up and down to the nearest integral multiple of
                  GBP10,000 respectively, subject to the maximum Return Amount
                  being equal to the Credit Support Balance.

(c)   Valuation and Timing.

      (i)   "Valuation Agent" means, Party A in all circumstances.

      (ii)  "Valuation Date" means the first Business Day of each calendar
            week; provided that if such day is not a Local Business Day then
            the Valuation Date shall be the preceding day that is a Local
            Business Day.

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

      (iv)  "Notification Time" means by 5.00p.m., London time, on a Local
            Business Day.

(d)   Exchange Date. "Exchange Date" has the meaning specified in paragraph
      3(c)(ii).

(e)   Dispute Resolution.

      (i)   "Resolution Time" means 1.00 p.m., London time, on the Local
            Business Day following the date on which notice is given that
            gives rise to a dispute under Paragraph 4.

                                      13
<PAGE>

      (ii)  "Value". For the purpose of Paragraph 4(a)(4)(i)(C) and
            4(a)(4)(ii), the Value of the outstanding Credit Support Balance
            or of any transfer of Eligible Credit Support or Equivalent Credit
            Support, as the case may be, will be calculated as follows:

            (A)   For Eligible Credit Support comprised in a Credit Support
                  Balance that is an amount of cash, the Base Currency
                  Equivalent of such amount; and

            (B)   with respect to any Eligible Credit Support or Equivalent
                  Credit Support comprising securities ("Securities") the Base
                  Currency Equivalent of the sum of (a) (x) the close of
                  business bid price on such date for such Securities on the
                  principal national securities exchange on which such
                  Securities are listed, multiplied by the applicable
                  Valuation Percentage; or (y) an amount equal to the average
                  of the bid price quotes provided on such date by two or more
                  recognised dealers, selected in good faith by the Valuation
                  Agent, or if no such quotes are available on such date, the
                  average of the bid price quotes as of the next preceding
                  date on which such quotes were available, multiplied by the
                  applicable Valuation Percentage; plus (b) the accrued
                  interest where applicable on such Securities (except to the
                  extent that such interest shall have been paid to the
                  Transferor pursuant to Paragraph 5(c)(ii) or included in the
                  applicable price referred to in subparagraph (a) above) as
                  of such date;

      (iii) "Alternative". The provisions of Paragraph 4 will apply.

(f)   Distribution and Interest Amount.

      (i)   Interest Rate. The "Interest Rate" will be with respect to the
            Base Currency, such rate as may be agreed between the parties from
            time to time, and subject to confirmation from Moody's that it
            shall not affect the then current ratings of the relevant Series
            of Notes. In the event that the parties agree that Eligible Credit
            Support may include currencies other than the Base Currency, the
            "Interest Rate" with respect to each such currency shall be such
            rate as may be agreed between the parties at the time that it is
            agreed that Eligible Credit Support may include such currency and
            subject to confirmation from Moody's that it shall not effect the
            then current ratings of the relevant Series of Notes.

      (ii)  "Transfer of Interest Amount". The transfer of the Interest Amount
            will be made on the first Local Business Day following the end of
            each calendar month to the extent that Party B has earned and
            received such amount of interest and that a Delivery Amount would
            not be created or increased by that transfer, and on any other
            Local Business Day on which Equivalent Credit Support is
            transferred to the Transferor pursuant to Paragraph 2(b), provided
            that Party B shall only be obliged to transfer any Interest Amount
            to Party A to the extent that it has received such amount.

      (iii) "Alternative to Interest Amount". The provisions of Paragraph
            5(c)(ii) will apply. For the purposes of calculating the Interest
            Amount the amount of interest calculated for each day of the
            Interest Period shall, with respect to any Eligible Currency, be
            compounded daily.

      (iv)  Interest Amount"

      The definition of "Interest Amount" shall be deleted and replaced with
      the following:

            "Interest Amount" means, with respect to an Interest Period and
            each portion of the Credit Support Balance comprised of cash in an
            Eligible

                                      14
<PAGE>

            Currency, the sum of the amounts of interest determined for each
            day in that Interest Period by the Valuation Agent as follows:

            (x) the amount of such currency comprised in the Credit Support
            Balance at the close of business for general dealings in the
            relevant currency on such day (or, if such day is not a Local
            Business Day, on the immediately preceding Local Business Day);
            multiplied by

            (y)   the relevant Interest Rate; divided by

            (z)   360 (or in the case of Sterling 365).

      (v)   "Distributions" means, with respect to any Eligible Credit Support
            comprised in the Credit Support Balance consisting of securities,
            all principal, interest and other payments and distributions of
            cash or other property to which a holder of securities of the same
            type, nominal value, description and amount as such Eligible
            Credit Support would have received from time to time.

      (vi)  "Distribution Date" means, with respect to any Eligible Credit
            Support comprised in the Credit Support Balance other than cash,
            each date on which a holder of such Eligible Credit Support would
            have received Distributions or, if that date is not a Local
            Business Day, the next following Local Business Day.

(g)   Addresses for Transfers.

      Party A: To be advised. Details to be obtained from: Deutsche Bank AG
      London, Floor 14, 6/8 Bishopsgate, London EC2N 4DA

      Party B: Details to be obtained from: To be advised by Party B

      Collateral calls / queries should be addressed to:

      To be advised by Party B

(h)   Other Provisions.

      (i)   Transfer Timing

      1)    The final paragraph of Paragraph 3(a) shall be deleted and
            replaced with the following:

            "Subject to Paragraph 4, and unless otherwise specified, any
            transfer of Eligible Credit Support or Equivalent Credit Support
            (whether by the Transferor pursuant to Paragraph 2(a) or by the
            Transferee pursuant to Paragraph 2(b)) shall be made not later
            than the close of business on the Settlement Day."

      2)    The definition of Settlement Day shall be deleted and replaced
            with the following:

            "Settlement Day" means the next Local Business Day after the
            Demand Date

      3)    For the purposes of this Paragraph 11(h)(i):

            "Demand Date" means, with respect to a transfer by a party.

                                      15
<PAGE>

            (i) in the case of a transfer pursuant to Paragraph 2, Paragraph 3
            or Paragraph 4(a)(2), the relevant Valuation Date. For the
            avoidance of doubt, for the purposes of Paragraph 2 and Paragraph
            4(a)(2), the Transferor will be deemed to receive notice of the
            demand by the Transferee to make a transfer of Eligible Credit
            Support; and

            (ii) in the case of a transfer pursuant to Paragraph 3(c)(ii)(A),
            the date on which the Transferee has given its consent to the
            proposed exchange.

            for the avoidance of doubt, on each Demand Date the Transferor
            shall deliver to the Transferee and the Trustee a statement
            showing the amount of Eligible Credit Support to be delivered.

      (ii)  Costs of Transfer on Exchange

            Notwithstanding Paragraph 8, the Transferor will be responsible
            for, and will reimburse the Transferee for, all transfer and other
            taxes and other costs in connection with performing both its and
            the Transferee's obligations under this Annex, which are in
            relation to the transfer of Eligible Credit Support or Equivalent
            Credit Support either from the Transferor to the Transferee or
            from the Transferee to the Transferor hereto.

      (iii) Cumulative Rights

            The rights, powers and remedies of the Transferee under this Annex
            shall be in addition to all rights, powers and remedies given to
            the Transferee by this Agreement or by virtue of any statute or
            rule of law, all of which rights, powers and remedies shall be
            cumulative and may be exercised successively or concurrently
            without impairing the rights of the Transferee in the Credit
            Support Balance created pursuant to this Annex.

      (iv)  Single Transferor and Single Transferee

            Party A and Party B agree that, notwithstanding anything to the
            contrary in this Annex, (including, without limitation, the
            recital hereto, Paragraph 2 or the definitions in Paragraph 10),
            (a) the term "Transferee" as used in this Annex means only Party
            B, (b) the term "Transferor" as used in this Annex means only
            Party A, (c) only Party A will be required to make Transfers of
            Eligible Credit Support hereunder and, for the avoidance of Party
            B shall have no obligation to make transfer of any Delivery
            Amounts to Party A pursuant to the terms of this Annex; and (d) in
            the calculation of any Credit Support Amount, where the
            Transferee's Exposure would be expressed as a negative number,
            such Exposure shall be deemed to be zero.

      (v)   Ratings Criteria

            "Ratings Criteria" means, the criteria used by Moody's ("Moody's
            Criteria") and the criteria used by Fitch (as set out in the Fitch
            Report) ("Fitch Criteria") for the purposes of determining the
            amount of Eligible Credit Support Party A is required to transfer
            hereunder following a credit ratings downgrade where Party A has
            opted to transfer Eligible Credit Support in support of its
            obligations under this Agreement pursuant to Part 5(l) and/or Part
            5(m) of this Agreement.

                                      16
<PAGE>

            Moody's Criteria

            "Credit Support Amount" shall be calculated in accordance with the
            meaning specified in Paragraph 10 provided however that the words
            "plus the Additional Collateral Amount" shall be added after the
            words "Transferee's Exposure" in the second line thereof. For such
            purposes "Additional Collateral Amount" means, with respect to a
            Valuation Date the sum of (i) the Transferee's Exposure multiplied
            by A and (ii) the product of B multiplied by the sum of the
            Notional Amount(s) as defined in the Confirmation for each
            outstanding Transaction under this Agreement, where :

            1. "A" means 2% and "B" means 1.6% if the long-term, unsecured and
            unsubordinated debt obligations or the short-term, unsecured and
            unsubordinated debt obligation of Party A (or its successor) and,
            if relevant, any Credit Support Provider of Party A cease to be
            rated as high as "A1" or cease to be rated as high as "Prime-1" by
            Moody's; or

            2. "A" shall be equal to or greater than 2% (as determined by
            Moody's) and "B" means 2.6% if the long-term, unsecured and
            unsubordinated debt obligations or the short-term, unsecured and
            unsubordinated debt obligation of Party A (or its successor) and,
            if relevant, any Credit Support Provider of Party A cease to be
            rated as high as "A3" or cease to be rated as high as "Prime-2" by
            Moody's.

            Fitch Criteria

            "Credit Support Amount" shall mean at any time for the purposes of
            the Fitch Criteria with respect to a Transferor on a Valuation
            Date the result of the following formula:

              max [MV plus VC x 105 per cent multiplied by N; 0]

            where:

            "max" means maximum;

            "MV" means the Transferee's Exposure;

            "VC" means the applicable volatility cushion at that time
            determined by reference to the table headed "Volatility Cushion
            (%)" appearing at the end of Appendix 2 to the Fitch Criteria (and
            for such purpose calculating the relevant Weighted Average Life
            assuming a zero prepayment rate and zero default rate in relation
            to the mortgages beneficially owned by Party B), if applicable;
            and

            "N" means the Transaction Notional Amount at that time.

            "Remaining Average Life" means the remaining average life of a
            swap as a number of years (expressed to two decimal places), and
            is based on an amortization schedule that is calculated using
            expected prepayment rates and which does not take into account any
            potential cancellation option exercise or early terminations of
            such swap.

      (vi)  Calculations.

            Paragraph 3(b) of this Annex shall be amended by inserting the
            words "and shall provide each party (or the other party, if the
            Valuation Agent is a party) with a

                                      17
<PAGE>

            description in reasonable detail of how such calculations were
            made, upon request" after the word "calculations" in the third
            line thereof.

      (vii) Independent Party.

            If Party A is at any time rated below A1 or Prime-1 by Moody's,
            Party A shall (i) on a weekly basis (on the same date that the
            Valuation Agent makes its Calculation), obtain a Calculation from
            a party which is independent to Party A's trading desk (or the
            equivalent) (for example the middle office or market risk
            department of Party A, Party A's auditors or a consulting firm in
            derivative products appointed by Party A) to validate the
            calculation of any Calculation by Party A's trading desk (or the
            equivalent); and (ii) upon the written request of Moody's, on a
            monthly basis, use it's best efforts to seek two quotations from
            Reference Market-makers; provided that if 2 Reference
            Market-makers are not available to provide a quotation, then fewer
            than 2 Reference Market-makers may be used for such purpose, and
            if no Reference Market-makers are available, the Trustee will
            determine an alternative source, for the purpose of Calculations.
            Where more than one quotation is obtained, the quotation
            representing the greatest amount of Exposure shall be used by the
            Valuation Agent."

      (viii) Implementation of Credit Support Annex.

            Notwithstanding anything to the contrary in this Agreement and for
            the avoidance of doubt, Party A's obligation to transfer Eligible
            Credit Support pursuant to the terms of this Credit Support Annex
            will be subject to the provisions of Part 5(l) and 5(m) of the
            Schedule to this Agreement.

      (ix)  Definitions.

            As used in this Annex, the following terms shall mean:

            "Fitch" means Fitch Ratings Ltd and includes any successors
            thereto;

            "Moody's" means Moody's Investors Service Limited and includes any
            successors thereto; and

            "Rating Agencies" means Moody's and Fitch.

                                      18
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class A1 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492431M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 810,000,000 Series
2006-2 Class A1 Notes due April 2031.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in April
                                               2031.

Exchange Rate:                                 GBP 1.00: USD 1.88

A. Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 810,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 1 month; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 2 week and 1 month
                                               rates.

         Floating Rate Payer I Spread:         0.01 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.02 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 430,851,064
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month

                                      3
<PAGE>

                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        -0.0117 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.1266 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.       Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 430,851,064.

Party B Initial Exchange Amount:               USD 810,000,000

C.       Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD Amortisation Amount
                                               is payable.

Floating Rate Payer I                          In respect of an Interim
                                               Exchange Date, the amount in
                                               USD (if any)

                                      4
<PAGE>

Interim Exchange Amount:                       equal to the principal amount
                                               of the Issuer Notes required to
                                               be so repaid, prepaid or
                                               otherwise redeemed (howsoever
                                               described) in accordance with
                                               the Conditions and as
                                               determined by the Cash Manager
                                               pursuant to the Issuer Cash
                                               Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.       Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81
                                               Swift Code:  DEUTGB2L

                                      5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.       Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226

         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne
                                               NE3 4PL

                                      6
<PAGE>

         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

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

         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.       Miscellaneous:

1.       It is understood and agreed that in the Schedule to the Agreement:

1.1      The words in the square brackets in the last paragraph of Part 5(f)A
         are incorporated into this Confirmation and the square brackets are
         accordingly deleted.

1.2      The words in the square brackets in Part 5(h)(iii) falling after the
         words "will not then fall due are not incorporated into this
         Confirmation and the square brackets and words therein are
         accordingly deleted.

1.3      The words in the square brackets at the end of Part 5(h)(v) falling
         after the words "of any shortfall" are not incorporated into this
         Confirmation and the square brackets and words therein are
         accordingly deleted.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                      7
<PAGE>

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Cousel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class A4 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492442M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 1,275,000,000 Series
2006-2 Class A4 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054

Exchange Rate:                                 GBP 1.00: USD 1.88

A.    Floating Payments
Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 1,275,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.04 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.08 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 678,191,489
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.0311 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.2122 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.    Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 678,191,489.

Party B Initial Exchange Amount:               USD 1,275,000,000

C.    Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.    Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81

                                      5
<PAGE>

                                               Swift Code:  DEUTGB2L
                                               .

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.    Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226

         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne

                                      6
<PAGE>

                                               NE3 4PL

         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

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

         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      incorporated into this Confirmation and the square brackets are
      accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are not incorporated into this
      Confirmation and the square brackets and words therein are accordingly
      deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are not incorporated into this
      Confirmation and the square brackets and words therein are accordingly
      deleted.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

                                      7
<PAGE>

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class B1 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492447M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 29,000,000 Series
2006-2 Class B1 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054.

Exchange Rate:                                 GBP 1.00: USD 1.88

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 29,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.08 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.16 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 15,425,532
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.0651 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.2802 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.       Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 15,425,532.

Party B Initial Exchange Amount:               USD 29,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.      Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.      Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81
                                               Swift Code:  DEUTGB2L

                                      5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.      Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226
         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne
                                               NE3 4PL

                                      6
<PAGE>

         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

         Address:                              One Canada Square
                                               48th Floor
                                               London
                                               E14 5AL
         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      not incorporated into this Confirmation and the square brackets and
      words therein are accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are incorporated into this Confirmation
      and the square brackets are accordingly deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are incorporated into this
      Confirmation and the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred Amounts
      and the Floating Amount I Deferred Interest.

                                      7
<PAGE>

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating
      Rate Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and
      the Floating Amount II Deferred Interest.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class B2 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492415M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 36,000,000 Series
2006-2 Class B2 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054.

Exchange Rate:                                 GBP 1.00: USD 1.88

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 36,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.14 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.28 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 19,148,936
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.1386 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.4272 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.    Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 19,148,936.

Party B Initial Exchange Amount:               USD 36,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.    Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81
                                               Swift Code:  DEUTGB2L

                                      5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.       Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226

         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne

                                      6
<PAGE>

                                               NE3 4PL
         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

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

         Facsimile Number:                     +44 (0)20 7964 6399

G.      Offices:                               The Office of Party A is London.

H.      Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      not incorporated into this Confirmation and the square brackets and
      words therein are accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are incorporated into this Confirmation
      and the square brackets are accordingly deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are incorporated into this
      Confirmation and the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred

                                      7
<PAGE>

      Amounts and the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating
      Rate Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and
      the Floating Amount II Deferred Interest.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

Confirmed as of the date first written:

Granite Master Issuer plc

By:

Name:
Title:

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class M1 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492410M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 25,000,000 Series
2006-2 Class M1 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054

Exchange Rate:                                 GBP 1.00: USD 1.88

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 25,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.18 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.36 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 13,297,872
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.1753 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.5006 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.    Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 13,297,872.

Party B Initial Exchange Amount:               USD 25,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.    Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81
                                               Swift Code:  DEUTGB2L

                                      5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.    Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226

         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne

                                      6
<PAGE>

                                               NE3 4PL
         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

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

         Facsimile Number:                     +44 (0)20 7964 6399

G.    Offices:                                 The Office of Party A is London.

H.    Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      not incorporated into this Confirmation and the square brackets and
      words therein are accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are incorporated into this Confirmation
      and the square brackets and words therein are accordingly deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are incorporated into this
      Confirmation and the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred

                                      7
<PAGE>

      Amounts and the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating
      Rate Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and
      the Floating Amount II Deferred Interest.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsek

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class M2 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:        1492408M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on 19 January 2005 (as the same may be
amended, restated, varied or supplemented from time to time with the consent
of the parties hereto), and the Issuer Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto). The Issuer Master
Definitions Schedule shall prevail to the extent that it conflicts with the
Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 25,000,000 Series
2006-2 Class M2 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054

Exchange Rate:                                 GBP 1.00: USD 1.88

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 25,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.23 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.46 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.
         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 13,297,872
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.2434 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.6368 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.    Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 13,297,872.

Party B Initial Exchange Amount:               USD 25,000,000.

C.    Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.    Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.    Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81

                                      5
<PAGE>

                                               Swift Code:  DEUTGB2L

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.    Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226

         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne

                                      6
<PAGE>

                                               NE3 4PL

         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

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

         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      not incorporated into this Confirmation and the square brackets and
      words therein are accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are incorporated into this Confirmation
      and the square brackets are accordingly deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are incorporated into this
      Confirmation and the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred

                                      7
<PAGE>

      Amounts and the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating
      Rate Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and
      the Floating Amount II Deferred Interest.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Secuiritisation Director No. 1 Limited

                                      8
<PAGE>

               Cross-Currency Confirmation for Series 2006-02 (Class C1 Notes)
                                                             EXECUTION VERSION

From:             Deutsche Bank AG, London Branch
                  Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB

Attention:        OTC Derivative Operations Division

To:               Granite Master Issuer plc
                  Fifth Floor
                  100 Wood Street
                  London
                  EC2V 7EX

Attention:        Securitisation Team, Risk Operations

Summit Ref:       1492402M

                                                                   24 May 2006

Dear Sirs,

Re:      Cross Currency Swap Transaction relating to the Issuer Notes

The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date specified below (the "Transaction").

It is agreed that upon the execution of this Confirmation, we shall be deemed
to have entered into an agreement relating to the Issuer Notes on the terms of
the Agreed Form Agreement (the "Agreement") dated as of the Effective Date
specified below.

"Agreed Form Agreement" means the form of 1992 ISDA Master Agreement
(Multicurrency Cross Border) (including the Schedule thereto and the ISDA
Credit Support Annex (Bilateral Form - Transfer) forming part of the Schedule)
signed for the purposes of identification by Sidley Austin and Deutsche Bank
AG, London Branch on 23 May 2006.

This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the Agreement. All provisions
contained in the Agreement govern this Confirmation except as expressly
modified herein.

The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (the
"Definitions") are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern. References herein to a "Transaction" shall be deemed to be
references to a "Swap Transaction" for the purposes of the Definitions. Any
terms not otherwise defined herein or in the Definitions shall have the
meanings given to them in the Programme Master Definitions Schedule signed for
the purposes of identification by Sidley Austin Brown & Wood (now known as
Sidley Austin) and Allen & Overy LLP on

<PAGE>

19 January 2005 (as the same may be amended, restated, varied or supplemented
from time to time with the consent of the parties hereto), and the Issuer
Master Definitions Schedule signed for the purposes of identification by
Sidley Austin Brown & Wood (now known as Sidley Austin) and Allen & Overy LLP
on 19 January 2005 (as the same may be amended, restated, varied or
supplemented from time to time with the consent of the parties hereto). The
Issuer Master Definitions Schedule shall prevail to the extent that it
conflicts with the Master Definitions Schedule.

In this Confirmation:

"Conditions" means the terms and conditions of the Issuer Notes, as set out in
the Base Prospectus dated 11 May 2006 and the Final Terms dated 18 May 2006
(as each may be amended, restated, varied, supplemented and/or otherwise
modified from time to time in accordance with the provisions of the Issuer
Trust Deed), and any reference to a numbered Condition shall be construed
accordingly; and

"Issuer Notes" means the Granite Master Issuer plc USD 75,000,000 Series
2006-2 Class C1 Notes due December 2054.

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

Party A:                                       Deutsche Bank AG, London Branch.

Party B:                                       Granite Master Issuer plc.

Trade Date:                                    16 May 2006.

Effective Date:                                24 May 2006.

Termination Date:                              The Floating Rate Payer I
                                               Payment Date falling in
                                               December 2054.

Exchange Rate:                                 GBP 1.00: USD 1.88

A.    Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                Party A.

         Floating Rate Payer I                 On any Floating Rate Payer I
         Currency Amount:                      Payment Date, USD 75,000,000
                                               less the aggregate of the
                                               Floating Rate Payer I Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer I                 Each Note Payment Date (as
         Payment Dates:                        defined in the Conditions).

                                      2
<PAGE>

         Floating Rate Payer I                 LIBOR (as defined in the
         Floating Rate Option:                 Conditions).

         Floating Rate Payer I                 3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which Linear Interpolation
                                               is applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, in the event
                                               that the frequency of the
                                               Floating Rate Payer I Payment
                                               Dates alter to monthly due to
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer I Spread:         0.47 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 0.94 per cent. per
                                               annum.

         Floating Rate Payer I                 Actual/360.

         Floating Rate Day Count
         Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:               Party B.

         Floating Rate Payer II                On any Floating Rate Payer II
         Currency Amount:                      Payment Date, GBP 39,893,617
                                               less the aggregate of the
                                               Floating Rate Payer II Interim
                                               Exchange Amounts paid prior to
                                               such date.

         Floating Rate Payer II                The 20th day of each calendar
         Payment Dates:                        month in each year during the
                                               Term from, and including, June
                                               2006 to, but excluding, the
                                               Termination Date, subject to
                                               adjustment in accordance with
                                               the Following Business Day
                                               Convention and the Termination
                                               Date.

         Floating Rate Payer II                GBP-LIBOR-BBA.
         Floating Rate Option:

         Floating Rate Payer II                3 months; except in respect of
         Designated Maturity:                  the initial Calculation Period
                                               for which

                                      3
<PAGE>

                                               Linear Interpolation is
                                               applicable and in respect of
                                               which the Linear Interpolation
                                               shall be applied by reference
                                               to the 1 month and 2 month
                                               rates; or 1 month, following
                                               the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date.

         Floating Rate Payer II Spread:        0.5032 per cent. per annum for
                                               the Calculation Periods up to
                                               and including the Calculation
                                               Period ending on, but
                                               excluding, the Payment Date
                                               falling in July 2011; and
                                               thereafter 1.1564 per cent. per
                                               annum.

         Floating Rate Payer II                Actual/365 (Fixed).
         Floating Rate Day Count
         Fraction:

         Floating Rate Payer II                The first day of each
         Reset Dates:                          Calculation Period; provided
                                               however, that in respect of
                                               every Floating Rate Payer II
                                               Calculation Period (other than
                                               the first Calculation Period
                                               and any Calculation Period
                                               following the occurrence of a
                                               Pass-Through Trigger Event or
                                               Step-Up Date) that does not
                                               start on a Note Payment Date
                                               (as defined in the Issuer
                                               Notes), the Floating Rate in
                                               effect for such Calculation
                                               Period shall be the Floating
                                               Rate for the immediately
                                               preceding Floating Rate Payer
                                               II Calculation Period.

Calculation Agent:                             Party A.

Business Days:                                 London and New York.

B.       Initial Exchange:

Initial Exchange Date:                         Effective Date.

Party A Initial Exchange Amount:               GBP 39,893,617.

Party B Initial Exchange Amount:               USD 75,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                        Each Note Payment Date (as
                                               defined in the Conditions) on
                                               which a USD

                                      4
<PAGE>

                                               Amortisation Amount is payable.

Floating Rate Payer I                          In respect of an Interim
Interim Exchange Amount:                       Exchange Date, the amount in
                                               USD (if any) equal to the
                                               principal amount of the Issuer
                                               Notes required to be so repaid,
                                               prepaid or otherwise redeemed
                                               (howsoever described) in
                                               accordance with the Conditions
                                               and as determined by the Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement; and
                                               notified to the Calculation
                                               Agent by the Issuer Cash
                                               Manager pursuant to the Issuer
                                               Cash Management Agreement (the
                                               "USD Amortisation Amount").

Floating Rate Payer II                         In respect of any Interim
Interim Exchange Amount:                       Exchange Date, an amount in GBP
                                               equal to the Floating Rate
                                               Payer I Interim Exchange Amount
                                               converted into GBP at the
                                               Exchange Rate.

D.       Final Exchange:

Final Exchange Date:                           The Termination Date.

Floating Rate Payer I                          A USD amount equal to the
Final Exchange Amount:                         Floating Rate Payer II Final
                                               Exchange Amount converted into
                                               USD at the Exchange Rate.

Floating Rate Payer II                         The Floating Rate Payer II
Final Exchange Amount:                         Currency Amount.

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in USD:                   Deutsche Bank Trust Co.,
                                               New York
                                               ABA 021 001 033
                                               Account Number:  04-411-739
                                               Swift Code:  BKTRUS33

Account for Payments in GBP:                   Deutsche Bank AG, London
                                               Account Number: Direct Chaps
                                               40-50-81
                                               Swift Code:  DEUTGB2L

                                      5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in USD:                   Citibank, N.A., New York
                                               SWIFT: CITIUS33
                                               A/C Citibank, N.A., London
                                               A/C No. 10990765
                                               SWIFT: CITIGB2L
                                               for further credit to account:
                                               10860263
                                               Ref: GATS/Granite Master Issuer
                                               plc.

Account for Payments in GBP:                   Citibank, N.A., London
                                               A/C No. 10860255
                                               Sort Code 18-50-08
                                               Ref: GATS/Granite Master Issuer
                                               plc.

F.       Notice Details:

Floating Rate Payer I:                         Deutsche Bank AG, London Branch

         Address:                              Deutsche Bank AG, Head Office.
                                               Taunusanlage 12
                                               60262 Frankfurt, Germany

                                               Copied to:
                                               Deutsche Bank AG, London Branch
                                               Winchester House
                                               1 Great Winchester Street
                                               London EC2N 2DB

                                               OTC Derivative Operations
                                               Division
                                               44 207 545 4888
                                               44 20 754 54226
         Telex No:                             411836 or 416731 or 41233

         Attention:                            Legal Department

Floating Rate Payer II:                        Granite Master Issuer plc

         Address:                              Fifth Floor
                                               100 Wood Street
                                               London
                                               EC2V 7EX

With a copy to:                                Northern Rock plc
                                               Northern Rock House
                                               Gosforth
                                               Newcastle upon Tyne

                                      6
<PAGE>

                                               NE3 4PL

         Facsimile Number:                     +44 (0)191 279 4694

         Attention:                            Andy McLean/Tony Laggan

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

         Address:                              One Canada Square
                                               48th Floor
                                               London
                                               E14 5AL
         Facsimile Number:                     +44 (0)20 7964 6399

G.       Offices:                              The Office of Party A is London.

H.       Additional Termination Event:

For the purposes of Section 5(b)(v), the following event shall constitute an
Additional Termination Event:

Party A fails to provide the financial statements with the US Securities and
Exchange Commission ("SEC") as required to be filed by Party B in respect of
Party A pursuant to Regulation AB as promulgated by the SEC. For the purposes
of this Additional Termination Event, Party A shall be the sole Affected
Party.

I.    Miscellaneous:

1.    It is understood and agreed that in the Schedule to the Agreement:

1.1   The words in the square brackets in the last paragraph of Part 5(f)A are
      not incorporated into this Confirmation and the square brackets and
      words therein are accordingly deleted.

1.2   The words in the square brackets in Part 5(h)(iii) falling after the
      words "will not then fall due" are incorporated into this Confirmation
      and the square brackets are accordingly deleted.

1.3   The words in the square brackets at the end of Part 5(h)(v) falling
      after the words "of any shortfall" are incorporated into this
      Confirmation and the square brackets are accordingly deleted.

2.    If the payment of any Floating Amount I is deferred in accordance with
      Part 5(h)(iii) of the Schedule to the Agreement, then the amount so
      deferred (the "Floating Amount I Deferred Amount") shall, subject to the
      terms of this Confirmation, be payable on the next Floating Rate Payer I
      Payment Date (the "Floating Amount I Deferred Payment Date") (together
      with interest thereon (the "Floating Amount I Deferred Interest") at the
      Floating Rate Payer I Floating Rate for the relevant Calculation Period)
      and the Floating Amount I due on such Floating Amount I Deferred Payment
      Date shall be deemed to include the Floating Amount I Deferred

                                      7
<PAGE>

      Amounts and the Floating Amount I Deferred Interest.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) the Agreement, then the amount so deferred (the "Floating
      Amount II Deferred Amount") shall, subject to the terms of this
      Confirmation, be payable on the next Floating Rate Payer II Payment Date
      (the "Floating Amount II Deferred Payment Date") (together with interest
      thereon (the "Floating Amount II Deferred Interest") at the Floating
      Rate Payer II Floating Rate for the relevant Calculation Period) and the
      Floating Amount II due on such Floating Amount II Deferred Payment Date
      shall be deemed to include the Floating Amount II Deferred Amounts and
      the Floating Amount II Deferred Interest.

Please confirm your agreement to be bound by the terms of the foregoing by
executing a copy of this Confirmation and returning it to us by facsimile.

Yours faithfully

Deutsche Bank AG, London Branch

By: /s/ Meghan Wallis

Name:   Meghan Wallis
Title:  Legal Counsel

By: /s/ Nathan Townsend

Name:   Nathan Townsend
Title:  Legal Counsel

Confirmed as of the date first written:

Granite Master Issuer plc

By: /s/ Ian Bowden

Name:   Ian Bowden
Title:  Representing L.D.C. Secuiritisation Director No. 1 Limited

                                      8
<PAGE>

                                                                EXECUTION COPY

                             DISCLOSURE AGREEMENT

      THIS DISCLOSURE AGREEMENT, dated as of May 18, 2006 (this "Disclosure
Agreement"), is entered into by and between GRANITE MASTER ISSUER PLC, a
public limited company incorporated under the laws of England and Wales (the
"Issuing Entity"), GRANITE FINANCE FUNDING 2 LIMITED, a private limited
company incorporated under the laws of England and Wales ("Funding 2"),
GRANITE FINANCE TRUSTEES LIMITED, a private limited company incorporated under
the laws of Jersey, Channel Islands (the "Mortgages Trustee"), NORTHERN ROCK
PLC, a public limited company incorporated under the laws of England and Wales
(the "Sponsor"), BARCLAYS CAPITAL INC., J.P. MORGAN SECURITIES INC. and MORGAN
STANLEY & CO. INTERNATIONAL LIMITED (each a "Lead Underwriter" and
collectively with the other underwriters listed on Schedule 1 to the
Underwriting Agreement referred to below, the "Underwriters"), and DEUTSCHE
BANK AG, LONDON BRANCH (the "Swap Counterparty").

                             W I T N E S S E T H:

      WHEREAS, on or about May 24 (the "Closing Date"), the Issuing Entity is
issuing its USD-denominated Series 2006-2 (the "US Notes") pursuant to the
Sixth Supplemental Issuer Trust Deed dated as of May 24, 2006 to the Issuer
Trust Deed dated January 19, 2005, as amended or supplemented from time to
time (together, the "Issuer Trust Deed"), between the Issuing Entity and The
Bank of New York, as note trustee; and

      WHEREAS, the Underwriters are acquiring the US Notes from the Issuing
Entity pursuant to the Underwriting Agreement, dated as of May 18, 2006 (the
"Underwriting Agreement"), among, inter alios, the Issuing Entity and the
Underwriters; and

      WHEREAS, pursuant to the Prospectus, dated April 24, 2006 (the
"Prospectus"), the Preliminary Prospectus Supplement, dated May 2, 2006, to
the Prospectus, together with the Term Sheet, dated May 3, 2006, and the
Prospectus Supplement, dated May 18, 2006 to the Prospectus (the "Prospectus
Supplement" and, together with each of the foregoing, the "Offering
Materials"), the Underwriters are offering for sale the US Notes; and

      WHEREAS, the Issuing Entity and the Swap Counterparty are entering into
a 1992 ISDA Master Agreement (Multicurrency - Cross Border), dated as of May
24, 2006, and a related confirmation, schedule and credit support annex
(collectively, the "Currency Swap Agreement"); and

      WHEREAS, the Offering Materials are required to contain certain
disclosure concerning the Swap Counterparty in accordance with the Securities
and Exchange Commission's Regulation AB ("Regulation AB");

<PAGE>

      NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

                                   AGREEMENT

      1. Significance Estimate. The Issuing Entity and the Sponsor represent
that the "significance estimate" in respect of the Currency Swap Agreement as
of the date hereof is 20% or more.

      2. Swap Counterparty Representations. (a) The Swap Counterparty
represents that:

      (i)   it is a "foreign private issuer" as defined in Rule 405 issued
            under the Securities Act of 1933, as amended (the "Securities
            Act");

      (ii)  it is subject to the periodic reporting requirements of Section
            13(a) of the Securities Exchange Act of 1934, as amended (the
            "Exchange Act");

      (iii) pursuant to Section 13(a) of the Exchange Act, it (A) files an
            Annual Report on Form 20-F with the Securities and Exchange
            Commission (the "SEC") and (B) submits to the SEC on Reports on
            Form 6-K certain other financial information that it publishes,
            including (1) preliminary year-end financial results containing a
            preliminary unaudited statement of income of the Swap Counterparty
            ("Preliminary Financial Results") and (2) Interim Reports for each
            of the first three quarters of its fiscal year, each containing
            unaudited interim financial statements of the Swap Counterparty
            for such quarter;

      (iv)  it transmits its Annual Reports on Form 20-F and Reports on Form
            6-K to the SEC via the SEC's EDGAR System, and such reports are
            available on the SEC's EDGAR internet site under File Number
            001-15242; and

      (v)   it satisfies the requirements for incorporation by reference
            specified in Section 1100(c)(i)-(iii) of Regulation AB.

      3. Swap Counterparty Information. (a) The parties hereto acknowledge and
agree that the statements set forth under the heading "Issuer Swap Provider"
in the Prospectus Supplement (including any information described or
incorporated therein by reference to the reports filed by the Swap
Counterparty with the SEC) constitute the only information furnished to the
Issuing Entity, Funding 2, the Mortgages Trustee, the Sponsor or the
Underwriters by or on behalf of the Swap Counterparty for inclusion in the
Prospectus Supplement as of the date thereof (the "Swap Counterparty
Information").

                                      2
<PAGE>

      (b) The Swap Counterparty hereby represents and warrants, as of the date
of the Prospectus Supplement, that the Swap Counterparty Information (i)
contained and contains all information concerning the Swap Counterparty
required by Item 1115 of Regulation AB and (ii) fairly presents in all
material respects the financial condition, results of operations and cash
flows of the Swap Counterparty as of, and for, the periods presented therein.

      4. Exchange Act Reporting. (a) So long as the Issuing Entity, Funding 2,
the Mortgages Trustee or the Sponsor is required to file reports in respect of
the US Notes with the SEC pursuant to Sections 13(a) or 15(d) of the Exchange
Act ("Exchange Act Reports"), the Swap Counterparty agrees either:

      (i)   to provide the Issuing Entity such information relating to the
            Swap Counterparty as may be necessary to enable the Issuing Entity
            to comply with such requirements, including without limitation
            information concerning the Swap Counterparty required by Item 1115
            of Regulation AB and Forms 10-D and 10-K; or

      (ii)  to secure another party to replace Deutsche Bank AG, London Branch
            as Swap Counterparty on terms substantially similar to the
            Currency Swap Agreement, which other party (or a guarantor
            thereof) (A) satisfies any condition for replacement imposed on an
            entity acting as Swap Counterparty by any rating agency for the US
            Notes and (B) represents that it is able to comply with the
            requirements of Regulation AB.

      (b) In order to satisfy the requirements of Section 4(a)(i) hereof, the
Swap Counterparty authorizes the Issuing Entity to incorporate by reference
into the Prospectus Supplement or its Exchange Act Reports the audited
financial statements contained in the Swap Counterparty's most recent Annual
Report on Form 20-F and the unaudited financial statements contained in any
Preliminary Financial Results and any Interim Report on Form 6-K furnished to
the SEC by the Swap Counterparty subsequent to the filing of its most recent
Annual Report on Form 20-F. The information provided, or authorized to be
incorporated by reference, by the Counterparty pursuant to Section 4(a)(i) or
this Section 4(b) is referred to as the "Additional Information."

      (c) To the extent necessary to comply with Regulation AB, the Swap
Counterparty agrees to use its reasonable efforts to obtain any necessary
auditor's consents related to the financial statements so incorporated by
reference and promptly to forward to the Sponsor any such auditor consents
obtained.

      (d) In connection with the filing or submission to the SEC of Additional
Information provided or incorporated by reference pursuant to Section 4(a)(i)
or Section 4(b), the Swap Counterparty will be deemed to have represented and
warranted that the Additional Information includes all information required to
be included in the Exchange Act Reports by Item 1115 of Regulation AB and that
such Additional Information fairly presents in all material respects the
financial condition, results of operations and cash flows of the Swap
Counterparty as of, and for, the periods presented therein.

                                      3
<PAGE>

      (e) In the case of Additional Information incorporated by reference into
the Prospectus Supplement or the Exchange Act Reports pursuant to Section 4(b)
hereof, the Swap Counterparty shall be deemed to represent that, at the time
of such incorporation by reference, it satisfies the requirements for
incorporation by reference specified in Section 1100(c)(i)-(iii) of Regulation
AB.

      (f) (i) Upon the identification by the Swap Counterparty of a
replacement pursuant to Section 4(a)(ii) hereof meeting the requirements set
forth in such Section (a "Replacement Swap Counterparty"), the Issuing Entity
agrees to consent to such replacement and enter into documentation replacing
the Swap Counterparty with the Replacement Swap Counterparty as the obligor in
respect of the Currency Swap Agreement, and the parties hereto agree to
consent to such replacement and enter into documentation replacing the Swap
Counterparty with the Replacement Swap Counterparty as the obligor in respect
of this Disclosure Agreement.

      (ii) Subject to Section 4(f)(iii) hereof, the Swap Counterparty hereby
agrees to indemnify and hold harmless the Issuing Entity and the Sponsor, the
respective present and former directors, officers, employees and agents of
each of the foregoing and each person, if any, who controls the Issuing Entity
or the Sponsor within the meaning of Section 15 of the Securities Act, or
Section 20 of the Exchange Act, from and against any and all losses, claims,
damages, liabilities and expenses (or actions in respect thereof) arising out
of or are based upon the replacement of the Swap Counterparty with the
Replacement Swap Counterparty.

      (iii) Upon any such replacement, the parties hereto agree that Deutsche
Bank AG, London Branch shall have no liability or responsibility for (A) the
performance or non-performance of the Replacement Swap Counterparty in respect
of the Currency Swap Agreement or this Disclosure Agreement or any other
agreement relating to the US Notes or the transactions relating thereto or (B)
any information provided or failed to be provided by or with respect to the
Replacement Swap Counterparty for use in the Prospectus Supplement or the
Exchange Act Reports of the Issuing Entity or the Sponsor.

      5. Suspension of Exchange Act Reporting. If as of January 1, 2008, the
US Notes are held of record by less than 300 persons, and if permitted by law,
the Sponsor shall cause the Issuing Entity to file with the SEC, by no later
than January 30, 2008, a Form 15 suspending the Issuing Entity's requirement
to file reports with the SEC pursuant to the Exchange Act. The Issuing Entity
shall notify the Swap Counterparty upon the filing of any Form 15. Following
the filing of such Form 15 and any required Exchange Act Reports subsequent
thereto, the Swap Counterparty shall have no further obligation to provide
Additional Information.

      6. Indemnification. The Swap Counterparty hereby agrees to indemnify and
hold harmless each of the Issuing Entity, Funding 2, the Mortgages Trustee,
the Sponsor and each Underwriter, the respective present and former directors,
officers, employees and agents of each of the foregoing and each person, if
any, who controls any of the Issuing Entity, Funding 2, the Mortgages Trustee,
the Sponsor or any Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and

                                      4
<PAGE>

against any and all losses, claims, damages, liabilities and expenses (or
actions in respect thereof) arising out of or based upon (a) any breach of any
of the agreements and undertakings of the Swap Counterparty contained in this
Disclosure Agreement, (b) the failure of the Swap Counterparty Information or
Additional Information to comply with the requirements of Regulation AB or
fairly to present in all material respects the financial condition, results of
operations and cash flows of the Swap Counterparty as of, and for, the periods
presented therein and (c)(i) any untrue statement or alleged untrue statement
of a material fact contained in the Swap Counterparty Information, or (ii) the
omission or alleged omission to state in the Swap Counterparty Information a
material fact required to be stated in the Swap Counterparty Information or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

      7. Procedures. Promptly after receipt by an indemnified party hereunder
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party
hereunder, notify the indemnifying party of the commencement thereof; but the
omission so to notify the indemnifying party will not relieve it from any
liability that such indemnifying party may have to any indemnified party under
this Disclosure Agreement except to the extent that such indemnifying party
has been materially prejudiced by such failure. In case any such action is
brought against any indemnified party, and it notifies the indemnifying party
of the commencement thereof, the indemnifying party will be entitled to
participate therein, and, to the extent that such indemnifying party may wish,
to assume (at its own expense) the defense thereof, with counsel satisfactory
to such indemnified party (which counsel may be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified
party hereunder, such indemnifying party shall not be liable for any legal or
other expenses subsequently incurred by such indemnified party in connection
with the defense thereof unless (i) the indemnifying party shall have agreed
in writing to the continuing participation of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both
the indemnifying party and the indemnified party and representation of both
parties by the same counsel would, in the opinion of such counsel, be
inappropriate due to the actual or potential differing interests between them.
If the indemnifying party assumes the defense of any proceeding, it shall be
entitled to settle such proceeding with the consent of the indemnified party,
which will not be unreasonably withheld or delayed or, if such settlement
provides for release of the indemnified party in connection with all matters
relating to the proceeding which have been asserted against the indemnified
party in such proceeding by the other parties to such settlement, without the
consent of the indemnified party.

      8. Survival of Terms. The agreements, indemnities and representations of
the parties thereto contained herein or made pursuant to this Disclosure
Agreement will remain in full force and effect, regardless of any
investigation, or statement as to the results thereof, made by or on behalf of
any parties hereto or any of the controlling persons referred to herein, and
will survive the sale of the US Notes.

      9. Governing Law. THIS DISCLOSURE AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF

                                      5
<PAGE>

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

      10. Benefit of Agreement. This Disclosure Agreement shall inure to the
benefit of and be binding upon the parties hereto and their successors and
assigns and the controlling persons referred to herein, and no other person
shall have any right or obligation hereunder. Neither this Disclosure
Agreement nor any term hereof may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against whom
enforcement of the change, waiver, discharge or termination is sought.

      11. Counterparts. This Disclosure Agreement may be executed in
counterparts, each of which when so executed and delivered shall be considered
an original, and all such counterparts shall constitute one and the same
instrument.

                    [SIGNATURES COMMENCE ON FOLLOWING PAGE]

                                      6
<PAGE>

Executed as of the day and year first above written.

DEUTSCHE BANK AG,
acting through its London Branch, as Swap Counterparty

By: /s/ Toni McDermott
    ------------------------------
Name:   Toni McDermott
Title:  Director

By: /s/ Paul Weitzkorn
    ------------------------------
Name:   Paul Weitzkorn
Title:  Director

GRANITE MASTER ISSUER PLC, as Issuing Entity

By: /s/ Ian Bowden
    ------------------------------
Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

GRANITE FINANCE FUNDING 2 LIMITED, as Funding 2

By: /s/ Ian Bowden
    ------------------------------
Name:   Ian Bowden
Title:  Representing L.D.C. Securitisation Director No. 1 Limited

GRANITE FINANCE TRUSTEES LIMITED, as Mortgages Trustee

By: /s/ Dean Godwin
    ------------------------------
Name:   Dean Godwin
Title:  Director

NORTHERN ROCK PLC, as Sponsor

By: /s/ Colin Taylor
    ------------------------------
Name:   Colin Taylor
Title:  Company Secretary6

                                      7
<PAGE>

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the several Underwriters listed in Schedule 1
hereto (other than Morgan Stanley & Co. International Limited)

By: /s/ Richard J. Perez
    ------------------------------
Name:   Richard J. Perez
Title:  Vice President

MORGAN STANLEY & CO. INTERNATIONAL LIMITED

By: /s/ Brent Williams
    ------------------------------
Name:   Brent Williams
Title:  Executive Director

                                      8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]