Document:

Exhibit 10.3

                             Agreed Form Cover Sheet

                      dated 24 January 2006,

attaching:

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

2.    the Agreed Form Schedule thereto (Sidley Austin document number:
      964894v.6);

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: 966849v.3),

between

(1) HSBC BANK PLC; and

(2) GRANITE MASTER ISSUER plc, and

signed for the purposes of identification by:

/s/ James Collins
-------------------------------------------------
James Collins
HSBC BANK PLC

on 24 January  2006; and

/s/ Sidley Austin
-------------------------------------------------
SIDLEY AUSTIN

on 24 January  2006; and

<PAGE>

(Multicurrency - Cross Border)

                                     ISDA,
                 International Swap Dealers Association, Inc.

                               MASTER AGREEMENT

         dated as of the Effective Date specified in the Confirmation

                      HSBC BANK plc       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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<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                           ISDA(R) 1992
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      16                          ISDA(R) 1992
<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                          ISDA(R) 1992
<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.

HSBC BANK plc                                     GRANITE MASTER ISSUER plc
----------------------------------        --------------------------------
     (Name of Party)                           (Name of Party)

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

                                      18                          ISDA(R) 1992

<PAGE>

                                                HSBC/Granite Master Issuer plc
                        Cross Currency/Interest Rate Agreed Form ISDA Schedule
                                                 Agreed Form Version: 24.01.06

                             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) HSBC Bank plc ("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.

<PAGE>

(c)      The "Cross Default" provisions of Section 5(a)(vi) 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, except that such term will not include
         obligations in respect of deposits received in the ordinary course of
         Party A's banking business.

         "Threshold Amount" means, with respect to Party A, USD10,000,000.

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

(e)      The "Automatic Early Termination" provision of Section 6(a) 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.

                                      2

<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.

                                      3
<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>
         <S>                          <C>                            <C>                      <C>
         Party required               Form/Document/                 Date by which            Covered by
         to deliver                   Certificate                    to be delivered          Section 3(d)
         document                                                                             Representation

         Party A and                  Appropriate evidence of its    On signing of this       Yes
         Party B                      signatory's authority          Agreement

         Party B                      Certified copy of              On signing of this       Yes
                                      board resolution Agreement

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

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

                                       4

<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:                   HSBC Bank plc
                                    8 Canada Square
                                    London
                                    E14 5HQ

         Attention:                 Swaps & Derivatives Processing

         Telephone No.:             +44 (0)207 992 2784

         Facsimile No.:             +44 (0)20 7992 4457

         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)

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

                                       5
<PAGE>

(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 as specified in the
      Confirmation.

(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").

      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.

(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. For the purposes of Section 3(c) Party A shall be deemed to
      have no Affiliates.

                                       6
<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 interests 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 in accordance with the provisions
      of the Issuer Deed of Charge.

(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).

      Sections 5(a)(vii)(3) and 5(a)(vii)(4) are deleted in their entirety and
      replaced with the following:

      "(3) makes a general assignment, arrangement or composition with or for
      the benefit of its creditors, provided that where such general assignment,
      arrangement and/or composition is contemplated by the Transaction
      Documents, this Section 5(a)(vii)(3)

                                       7
<PAGE>

      shall not apply to Party B; (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 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.

----------------------------
(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.

                                       8
<PAGE>

(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 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. With respect to any amounts due and payable under this Agreement
      by Party A to Party B, payment of such amounts by Party A to Northern Rock
      plc shall discharge such payment obligation of Party A until such time as
      written notice of the termination of the appointment of Northern Rock plc
      as Party B's agent for such purpose is received by Party A.

(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

                                       9
<PAGE>

            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 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)
            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

------------------------
(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.

(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.

                                       10
<PAGE>

      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 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)   provide collateral in the form of cash and/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 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 rated no lower than the rating of the
            Issuer Notes immediately prior to such downgrade.

      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.

                                       11
<PAGE>

      (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) above; and

            (B)   if, at the time a Subsequent S&P Note Downgrade Event occurs,
                  Party A has provided collateral in accordance with the
                  provisions of the Credit Support Annex 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-paragraphs (k)(i) or (k)(ii) 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 or Subsequent S&P Note Downgrade Event, as
            applicable, 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 (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

                                       12
<PAGE>

            (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

            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) domiciled in the same
                  legal jurisdiction as Party A or Party B 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 domiciled in the same legal jurisdiction
                  as Party A or Party B, 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.

                                       13
<PAGE>

      (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 domiciled in the same legal jurisdiction
                  as Party A or Party B, 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 domiciled in the same legal jurisdiction
                  as Party A or Party B, 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 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.

                                       14
<PAGE>

            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
            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.

            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:

                                       15
<PAGE>

            (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

            "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.

                                       16
<PAGE>

                  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

            Party A will,

            (A)   at its own cost, 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

            on a reasonable efforts basis, within 30 days of the occurrence of a
            First Subsequent Fitch Note Downgrade Event, at its own cost,
            either:

            (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

                                       17
<PAGE>

            (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 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

                                       18
<PAGE>

            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
            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

                                       19
<PAGE>

            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 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. 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.

                                       20
<PAGE>

      (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.

      (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

                                       21
<PAGE>

            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"):-

            (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

                                       22
<PAGE>

            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.

            (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.

                        The definition of "Indemnifiable Tax" in Section 14
                        shall be deleted and the following shall be substituted
                        therefor:

                        "Indemnifiable Tax" means any Tax."

                                       23
<PAGE>

      (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 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 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);

                                       24
<PAGE>

                  (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":

            (a)   the word "firm" shall be added before the word "quotations" in
                  the second line; and

                                       25
<PAGE>

            (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.

      (v)   Party B will not be obliged to consult with Party A as to the day
            and time of obtaining any quotations.

                                       26
<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

          HSBC BANK PLC                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

<PAGE>

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

      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,

<PAGE>

      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 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

<PAGE>

      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:

            (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.

<PAGE>

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 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

<PAGE>

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

(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

<PAGE>

(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.

"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

<PAGE>

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

      (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

<PAGE>

      (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).

"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).

<PAGE>

"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>

                                                  HSBC/Granite Master Issuer plc
                Cross Currency/Interest Rate Paragraph 11 to the English law CSA
                                                   Agreed Form Version: 24.01.06

                            Agreed Form Paragraph 11

Paragraph 11. Elections and Variables

(a)   Base Currency and Eligible Currency.

      (i)   "Base Currency" means GBP.

      (ii)  "Eligible Currency" means the Base Currency, and, where relevant,

            if the Transaction is a EUR/GBP cross currency swap transaction,
            Euro; and if the Transaction is a USD/GBP cross currency swap
            transaction, U.S. Dollars.

It is agreed by the parties that where the Credit Support Amount is transferred
in a currency other than the Eligible 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"), such Additional Valuation 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.

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

            (C)   "Credit Support Amount" has the meaning given to such term in
                  respect of each of the Rating Agencies' criteria set out in
                  Paragraph 11(h)(v) below. 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.

      (ii)  Eligible Credit Support. The following items will qualify as
            "Eligible Credit Support" for Party A:

                                       1
<PAGE>

<TABLE>
<CAPTION>
<S>       <C>                                                                        <C>
                                                                                     Valuation Percentage
(A)       cash in an Eligible Currency                                               100 per cent.

(B)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P and Moody's, 98 per
          Kingdom or the United States of America (with local and foreign            cent. and for the purposes of  Fitch, the
          currency issuer ratings equal to or greater than AA- by S&P, AA- by        Advanced Rate (the "Advanced Rate") under
          Fitch and Aa3 by Moody's) having a remaining time to maturity of           the heading "Notes' Rating/AAA" in the table
          not more than one year;                                                    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").

(C)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P, 92 per cent., for
          Kingdom or the United States of America (with local and foreign            the purposes of Moody's, 94 per cent. and
          currency issuer ratings equal to or greater than AA- by S&P, AA- by        for the purposes of  Fitch, the Advanced
          Fitch and Aa3 by Moody's) having a remaining time to maturity of           Rate.
          more than one year but not more than 5 years;

(D)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P, 85.4 per cent., for
          Kingdom or the United States of America (with local and foreign            the purposes of Moody's, 91 per cent. and
          currency issuer ratings equal to or greater than AA- by S&P, AA- by        for the purposes of  Fitch, the Advanced
          Fitch and Aa3 by Moody's) having a remaining time to maturity of           Rate.
          more than 5 years but not more than 10 years;

(E)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P,  76.8 per cent.,
          Kingdom or the United States of America (with local and foreign            for the purposes of Moody's, 77.5 per cent.
          currency issuer ratings equal to or greater than AA- by S&P, AA- by        and for the purposes of  Fitch, the Advanced
          Fitch and Aa3 by Moody's) having a remaining time to maturity of           Rate.
          more than 10 years but not more than 15 years;

                                       2
<PAGE>

(F)       negotiable debt obligations issued by the Government of the United         For the purposes of S&P,  76.8 per cent.,
          Kingdom or the United States of America (with local and foreign            for the purposes of Moody's, 65 per cent.
          currency issuer ratings equal to or greater than AA- by S&P, AA- by        and for the purposes of  Fitch, the Advanced
          Fitch and Aa3 by Moody's) having a remaining time to maturity of           Rate.
          more than 15 years; or
(G)       such other items as agreed between Party A and the Rating Agencies,        Such Valuation Percentage as agreed between
          from time to time, which Party B can lawfully receive from, and            Party A and the Rating Agencies from time to
          transfer back to, Party A as required, that will qualify as                time in respect of such Eligible Credit
          Eligible Credit Support.                                                   Support.
</TABLE>

            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 E above the lower of the
            ratings and/or the Valuation Percentages, as the case may be, shall
            apply.

      (iii) Thresholds.

            (A)   "Independent Amount" means, for Party A and Party B, zero.

            (B)   "Threshold" means, for Party A,

                  infinity, unless Party A, in the event of: (a) an Initial S&P
                  Note Downgrade Event or a Subsequent S&P Note Downgrade Event
                  (which in each case, is continuing) has not otherwise complied
                  with Part 5(k)(i)(B), Part 5(k)(i)(C) or Part 5(k)(i)(D) or
                  Part 5(k)(ii)(A) of the Agreement, as the case may be, and/or
                  (b) an Initial Moody's Note Downgrade Event or a Subsequent
                  Moody's Note Downgrade Event (which in each case, is
                  continuing), has not otherwise complied with Part 5(l)(i)(A),
                  Part 5(l)(i)(B), Part 5(l)(i)(C), Part 5(l)(ii)(A), Part
                  5(l)(ii)(B) or Part 5(l)(ii)(C) of the Agreement, as the case
                  may be, and/or (c) an Initial Fitch Note Downgrade Event or a
                  First Subsequent Fitch Note Downgrade Event or a Second
                  Subsequent Fitch Note Downgrade Event (which in each case, is
                  continuing) has not otherwise complied with Part 5(m)(i)(B),
                  Part 5(m)(i)(C), Part 5(m)(i)(D), Part 5(m)(ii)(B), Part
                  5(m)(ii)(C), Part 5(m)(ii)(D), Part 5(m)(iii)(A), Part
                  5(m)(iii)(B) or Part 5(m)(iii)(C) of the Agreement, as the
                  case may be, then its Threshold shall be zero, and

                  "Threshold" means, for Party B: infinity

                                       3
<PAGE>

            (C)   "Minimum Transfer Amount" means, with respect to Party A and
                  Party B, GBP 50,000 provided, that if (1) an Event of Default
                  has occurred and is continuing in respect of which Party A is
                  the Defaulting Party, 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 GBP
                  10,000 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 each 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 of approximately the same time on the same date.

      (iv)  "Notification Time" means by 2:00 p.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 2:00 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.

      (ii)  Value. For the purpose of Paragraphs 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, on the relevant date will be calculated as follows:

            (A)   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 last 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) where any Securities are
                        not listed on a national securities exchange, the bid
                        price for such Securities quoted as at the close of
                        business on such

                                       4
<PAGE>

                        date by any principal market maker (which shall not be
                        and shall be independent from the Valuation Agent) for
                        such Securities chosen by the Valuation Agent,
                        multiplied by the applicable Valuation Percentage, or
                        (z) if no such bid price is able to be obtained for such
                        date under sub-paragraphs (x) or (y) above, the last bid
                        price listed determined pursuant to sub-paragraph (x),
                        or failing which sub-paragraph (y), as of the day next
                        preceding such date on which such prices were available,
                        multiplied by the applicable Valuation Percentage; and

                  (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
                        Paragraph 11(e)(ii)(A)(a) above) as of such date,

                  provided that it is understood that in no circumstances shall
                  the Transferee be required to transfer a Return Amount in
                  excess of the Credit Support Balance;

            (B)   with respect to any Cash, the Base Currency Equivalent of the
                  amount thereof; and

            (C)   with respect to any Eligible Credit Support or Equivalent
                  Credit Support other than Securities and Cash, the Base
                  Currency Equivalent of the fair market value thereof on such
                  date, as determined in any reasonable manner chosen by the
                  Valuation Agent, multiplied by the applicable Valuation
                  Percentage.

      (iii) Alternative. The provisions of Paragraph 4 will apply.

(f)   Distribution and Interest Amount.

      (i)   Interest Rate. The "Interest Rate" in relation to each Eligible
            Currency specified below will be:

            Eligible Currency         Interest Rate

            USD                       For the relevant determination date, the
                                      effective federal funds rate in U.S.
                                      Dollars published on Telerate Screen Page
                                      118 for the relevant day at the close of
                                      business in New York on such day.

            Euro                      For the relevant determination date,
                                      "EONIA", which means the overnight rate
                                      for such day, as

                                       5
<PAGE>

                                      set forth under the heading on Telerate
                                      Screen Page 247 or any successor page.

            GBP                       For the relevant determination date,
                                      "SONIA" which means the reference rate
                                      equal to the overnight rate as calculated
                                      by the Wholesale Market Brokers
                                      Association which appears on Telerate Page
                                      3937 under the heading "Sterling Overnight
                                      Index" as of 9.00 a.m., London time, on
                                      the first London Banking Day following
                                      that day.

      (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, provided that: (1) Party B has earned and
            received such amount of interest, and (2) a Delivery Amount would
            not arise as a result of, or if already existing, would not be
            increased by, such transfer on such date or on any other Local
            Business Day on which Equivalent Credit Support is to be transferred
            to the Transferor pursuant to Paragraph 2(b).

      (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" in Paragraph 10
            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 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 Pounds Sterling, 365)."

(g)   Addresses for Transfers.

      Party A:

                                       6
<PAGE>

GBP Cash                   EUR Cash                     USD Cash
--------                   --------                     --------
HSBC Bank plc              HSBC Bank plc                HSBC Bank USA,
London                     London                       New York
SWIFT: MIDLGB22            SWIFT: MIDLGB22              SWIFT: MRMDUS33
Sort Code: 40-53-71        Sort Code: 40-53-71          A/c number: 000023868
A/c number: 35575058       A/c number: 87511552         Ref: Granite Collateral
Ref: Granite Collateral    Ref: Granite Collateral

      Party B: To be advised.

(h)   Other Provisions.

      (i)   Transfer Timing

            (A)   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."

            (B)   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.

            (C)   For the purposes of this Paragraph 11(h)(i):

                  "Demand Date" means, with respect to a transfer by a party:

                  (i)   in the case of a transfer pursuant to Paragraph 2,
                        Paragraph 3 or Paragraph 4(a)(2), the relevant Valuation
                        Date (assuming that, in the case of any transfer to be
                        made by the Transferee, the Transferee has received a
                        demand on such date from the Transferor). 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.

                  On each Demand Date the Transferor shall deliver to the
                  Transferee and the Note Trustee a statement showing the amount
                  of Eligible Credit Support to be delivered.

                                       7
<PAGE>

      (ii)  Early Termination

            The heading for Paragraph 6 shall be deleted and replaced with
            "Early Termination" and the following shall be added after the word
            "party" in the second line of Paragraph 6, "or a Termination Event
            where all Transactions are Affected Transactions".

      (iii) Costs of Transfer on Exchange

            Notwithstanding Paragraph 8, the Transferor will be responsible for,
            and will reimburse the Transferee for, all costs and expenses
            (including any stamp, transfer or similar transaction tax or duty
            payable on any transfer that it is required to make under this
            Annex) in connection with performing both its and the Transferee's
            obligations under this Annex, including but not limited to those
            involved in 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.

      (iv)  Single Transferor and Single Transferee

            Party A and Party B agree that the definitions of "Transferee" and
            "Transferor" in Paragraph 10 of this Annex shall be deleted in their
            entirety and replaced with the following in lieu thereof:
            ""Transferor" means Party A; and "Transferee" means Party B, and,
            for the avoidance of doubt, only Party A will be required to make
            transfers of Delivery Amounts hereunder.

      (v)   "Ratings Criteria" means, the criteria used by S&P (as set out in
            S&P's Structure Finance report entitled "Global Interest Rate and
            Currency Swaps: Calculating the Collateral Required Amount"
            publication dated 26 February 2004 and S&P's article entitled
            "Standard and Poor's Global Interest Rate and Currency Swap
            Counterparty Rating Criteria Expanded" publication dated 17 December
            2003 (the "S&P Publications")) ("S&P Criteria"), 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 or is required to transfer Eligible
            Credit Support in support of its obligations under the Agreement
            pursuant to Part 5(k), Part 5(l) and/or Part 5(m), as the case may
            be, of the Schedule to the Agreement, in respect of each of which
            the definition of "Credit Support Amount" is set out below.

            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.

                                       8
<PAGE>

            For such purposes "Additional Collateral Amount" means with respect
            to a Valuation Date, the sum of (a) the Transferee's Exposure
            multiplied by "A" and (b) the product of "B" multiplied by the
            Transaction Notional Amount, where:

            (i)   "A" means 2 per cent. and "B" means 1.6 per cent. if the
                  long-term, unsecured and unsubordinated debt obligations of
                  Party A (or its successor) or any guarantor of Party A's
                  obligations under the Agreement are downgraded below "A1" by
                  Moody's, or the short-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) or any guarantor of
                  Party A's obligations under the Agreement are downgraded below
                  "Prime-1" by Moody's;

            (ii)  "A" means 2 per cent. and "B" shall be equal to 3.7 per cent.
                  if the long-term, unsecured and unsubordinated debt
                  obligations of Party A (or its successor) or any guarantor of
                  Party A's obligations under the Agreement, are downgraded
                  below "A3" by Moody's, or the short- term, unsecured and
                  unsubordinated debt obligations of Party A (or its successor)
                  or any guarantor of Party A's obligations under the Agreement,
                  are downgraded below "Prime-2" by Moody's; and

            (iii) "A" means 0 per cent. and "B" means 0 per cent. in all other
                  cases.

            S&P Criteria

            "Credit Support Amount" shall mean an amount calculated in
            accordance with the S&P criteria as set out in the S&P Publications.

            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); and

                                       9
<PAGE>

            "N" means the Transaction Notional Amount at that time.

      (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 description in reasonable detail of how
            such calculations were made, upon reasonable request" after the word
            "calculations" in the third line thereof.

      (vii) Demands and Notices

            All demands, specifications and notices under this Annex will be
            made pursuant to Section 12 of this Agreement.

     (viii) Exposure

            For the purpose of calculating Exposure pursuant to the meaning set
            out in Paragraph 10 of the Annex, the Valuation Agent shall, unless
            otherwise agreed in writing by the Rating Agencies, seek two
            quotations from Reference Market-makers; provided that if two
            Reference Market-makers are not available to provide a quotation,
            then fewer than two Reference Market-makers may be used for such
            purpose, and if no Reference Market-maker is available, then the
            Valuation Agent's estimate at mid-market will be used. Where more
            than one quotation is obtained, the quotation representing the
            greatest amount of the Transferee's Exposure shall be used by the
            Valuation Agent.

      (ix)  Paragraph 6

            For the purposes of determining the Credit Support Balance pursuant
            to Paragraph 6, the definition of Value in Paragraph 10 shall be
            amended by deleting the words "multiplied by the applicable
            Valuation Percentage, if any" from sub-paragraphs (i)(A) and (i)(B).

      (x)   Distributions

            "Distributions" has the meaning specified in Paragraph 10, except
            that the words "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" shall be deleted and
            replaced by the words "received by the Transferee in respect of such
            Eligible Credit Support".

            "Distribution Date" has the meaning specified in Paragraph 10,
            except that the words "a holder of such Eligible Credit Support is
            entitled to receive Distributions" shall be deleted and replaced by
            the words "Distributions are received by the Transferee".

      (xi)  Definitions

            As used in this Annex, the following terms shall mean:

                                       10
<PAGE>

            "Cross Currency Transaction" means, if applicable, the
            cross-currency swap rate transaction between Party A and Party B
            entered into pursuant to the Agreement as evidenced by the
            Confirmation;

            "Fitch" means Fitch Ratings Ltd and includes any successors thereto;

            "Interest Rate Transaction" means, if applicable, the interest rate
            swap transaction entered into pursuant to the Agreement between
            Party A and Party B as evidenced by the Confirmation;

            "Moody's" means Moody's Investors Service Limited and includes any
            successors thereto;

            "Rating Agencies" means Moody's, S&P and Fitch;

            "S&P" means Standard & Poor's Rating Services, a division of The
            McGraw-Hill Companies Inc. and includes any successors thereto;
            "Transaction" means the Cross Currency Transaction or the Interest
            Rate Transaction; and

            "Transaction Notional Amount" means in respect of a Valuation Date,
            the Currency Amount applicable to Party A in respect of a Cross
            Currency Swap Transaction, or in respect of an Interest Rate Swap
            Transaction, the Notional Amount of such Interest Rate Swap
            Transaction, each as at such Valuation Date.

                                       11
<PAGE>

                     HSBC Bank plc Cross-Currency Confirmation (Class 3A2 Notes)
                                                                  Execution Copy

From:             HSBC Bank plc
                  8 Canada Square
                  London
                  E14 5HQ

Attention:        Swaps & Derivatives Processing

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

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

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) and
signed for the purposes of identification by Sidley Austin (now known as Sidley
Austin (UK) LLP) and HSBC Bank plc on 24 January 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

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) 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 (UK) LLP) 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 19 January 2007 and the Final Terms dated 22 January
2007 (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 EUR 1,650,000,000 Series
2007-01 Class 3A2 Notes due December 2054.

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

<TABLE>
<CAPTION>
<S>                                                                         <C>
Party A:                                                                    HSBC Bank plc

Party B:                                                                    Granite Master Issuer plc.

Trade Date:                                                                 19 January 2007.

Effective Date:                                                             24 January 2007.

Termination Date:                                                           The Floating Rate Payer I Payment Date falling in
                                                                            December 2054.

Exchange Rate:                                                              GBP 1.00: EUR 1.52.

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                             Party A.

         Floating Rate Payer I                                              On any Floating Rate Payer I Payment Date, EUR
         Currency Amount:                                                   1,650,000,000 less the aggregate of the Floating Rate
                                                                            Payer I Interim Exchange Amounts paid prior

                                       2
<PAGE>

                                                                            to such date.

         Floating Rate Payer I                                              Each Note Payment Date (as defined in the Conditions).
         Payment Dates:

         Floating Rate Payer I                                              EURIBOR (as defined in the Conditions).
         Floating Rate Option:

         Floating Rate Payer I                                              3 months; except in respect of the initial
         Designated Maturity:                                               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:                                      0.10 per cent. per annum for the Calculation Periods
                                                                            up to and including the Calculation Period ending on,
                                                                            but excluding, the Payment Date falling in June 2012;
                                                                            and thereafter 0.20 per cent. per annum.

         Floating Rate Payer I                                              Actual/360.
         Floating Rate Day Count Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:                                            Party B.

         Floating Rate Payer II                                             On any Floating Rate Payer II Payment Date, GBP
         Currency Amount:                                                   1,085,526,315.79 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 month in each year
         Payment Dates:                                                     during the Term from, and including, February 2007
                                                                            to, but excluding, the Termination Date, subject to
                                                                            adjustment in accordance

                                       3
<PAGE>

                                                                            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 the initial
         Designated Maturity:                                               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, following the
                                                                            occurrence of a Pass-Through Trigger Event or Step-Up
                                                                            Date.

         Floating Rate Payer II Spread:                                     0.0767 per cent. per annum for the Calculation
                                                                            Periods up to and including the Calculation Period
                                                                            ending on, but excluding, the Payment Date falling in
                                                                            June 2012; and thereafter 0.3034 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 Calculation Period; provided
         Reset Dates:                                                       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 TARGET

                                       4
<PAGE>

B.       Initial Exchange:

Initial Exchange Date:                                                      Effective Date.

Party A Initial Exchange Amount:                                            GBP 1,085,526,315.79.

Party B Initial Exchange Amount:                                            EUR 1,650,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                                     Each Note Payment Date (as defined in the Conditions)
                                                                            on which a EUR Amortisation Amount is payable.

Floating Rate Payer I                                                       In respect of an Interim Exchange Date, the amount in
Interim Exchange Amount:                                                    EUR (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 "EUR
                                                                            Amortisation Amount").

Floating Rate Payer II                                                      In respect of any Interim Exchange Date, an amount in
Interim Exchange Amount:                                                    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 EUR amount equal to the Floating Rate Payer II
Final Exchange Amount:                                                      Final Exchange Amount converted into EUR at the
                                                                            Exchange Rate.

Floating Rate Payer II                                                      The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

                                       5
<PAGE>

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in EUR:                                     Bank:    HSBC Bank plc London
                                                                 Acct:   87511552
                                                                 SWIFT: MIDLGB22

Account for Payments in GBP:                                     Bank:    HSBC Bank plc London
                                                                 Acct:    35575058
                                                                 Sort Code : 40-53-71
                                                                 SWIFT : MIDLGB22

Payments to Floating Rate Payer II:

Account for Payments in EUR:                                     Citibank, N.A., London
                                                                 A/C No. 10861537
                                                                 SWIFT: CITIGB2L
                                                                 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:                                           HSBC Bank plc

         Address:                                                8 Canada Square
                                                                 London
                                                                 E14 5HQ

         Facsimile Number:                                       +44 (0)20 7992 2784

         Attention:                                              Swaps & Derivatives Processing

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London

                                       6
<PAGE>

                                                                 EC2V 7EX

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

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

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.
</TABLE>

H.    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.

Yours faithfully

HSBC Bank plc

By:   /s/ James Collins
      ---------------------------
Name:  James Collins
Title: Associate
       Duly Authorised Attorney

                                       7
<PAGE>

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:   /s/ Ian Bowden
      ---------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securisation Director No. 1 Limited
       Director

                                       8
<PAGE>

                     HSBC Bank plc Cross-Currency Confirmation (Class 3B1 Notes)
                                                                  Execution Copy

From:             HSBC Bank plc
                  8 Canada Square
                  London
                  E14 5HQ

Attention:        Swaps & Derivatives Processing

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

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

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) and
signed for the purposes of identification by Sidley Austin (now known as Sidley
Austin (UK) LLP) and HSBC Bank plc on 24 January 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 (UK) LLP) 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

<PAGE>

Definitions Schedule signed for the purposes of identification by Sidley Austin
Brown & Wood (now known as Sidley Austin (UK) LLP) 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 19 January 2007 and the Final Terms dated 22 January
2007 (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 EUR 167,000,000 Series
2007-01 Class 3B1 Notes due December 2054.

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

<TABLE>
<CAPTION>
<S>                                                              <C>
Party A:                                                         HSBC Bank plc

Party B:                                                         Granite Master Issuer plc.

Trade Date:                                                      19 January 2007.

Effective Date:                                                  24 January 2007.

Termination Date:                                                The Floating Rate Payer I Payment Date falling
                                                                 in December 2054.

Exchange Rate:                                                   GBP 1.00: EUR 1.52.

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                  Party A.

         Floating Rate Payer I                                   On any Floating Rate Payer I Payment Date, EUR
         Currency Amount:                                        167,000,000 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 defined in the
         Payment Dates:                                          Conditions).

         Floating Rate Payer I                                   EURIBOR (as defined in the Conditions).
         Floating Rate Option:

                                       2
<PAGE>

         Floating Rate Payer I                                   3 months; except in respect of the initial
         Designated Maturity:                                    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:                           0.17 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter 0.34
                                                                 per cent. per annum.

         Floating Rate Payer I                                   Actual/360.
         Floating Rate Day Count Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:                                 Party B.

         Floating Rate Payer II                                  On any Floating Rate Payer II Payment Date,
         Currency Amount:                                        GBP 109,868,421.05 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 month in each
         Payment Dates:                                          year during the Term from, and including,
                                                                 February 2007 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 the initial
         Designated Maturity:                                    Calculation Period for which Linear
                                                                 Interpolation is applicable and in respect of
                                                                 which the Linear Interpolation shall be
                                                                 applied by

                                       3
<PAGE>

                                                                 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:                          0.1584 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter
                                                                 0.4668 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 Calculation Period;
         Reset Dates:                                            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 TARGET

B.       Initial Exchange:

Initial Exchange Date:                                           Effective Date.

Party A Initial Exchange Amount:                                 GBP 109,868,421.05.

Party B Initial Exchange Amount:                                 EUR 167,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                          Each Note Payment Date (as defined in the
                                                                 Conditions) on which a EUR Amortisation Amount
                                                                 is payable.

                                       4
<PAGE>

Floating Rate Payer I                                            In respect of an Interim Exchange Date, the
Interim Exchange Amount:                                         amount in EUR (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 "EUR
                                                                 Amortisation Amount").

Floating Rate Payer II                                           In respect of any Interim Exchange Date, an
Interim Exchange Amount:                                         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 EUR amount equal to the Floating Rate Payer
Final Exchange Amount:                                           II Final Exchange Amount converted into EUR at
                                                                 the Exchange Rate.

Floating Rate Payer II                                           The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in EUR:                                     Bank:    HSBC Bank plc London
                                                                 Acct:   87511552
                                                                 SWIFT: MIDLGB22

Account for Payments in GBP:                                     Bank:    HSBC Bank plc London
                                                                 Acct:    35575058
                                                                 Sort Code : 40-53-71
                                                                 SWIFT : MIDLGB22

                                       5
<PAGE>

Payments to Floating Rate Payer II:

Account for Payments in EUR:                                     Citibank, N.A., London
                                                                 A/C No. 10861537
                                                                 SWIFT: CITIGB2L
                                                                 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:                                           HSBC Bank plc

         Address:                                                8 Canada Square
                                                                 London
                                                                 E14 5HQ

         Facsimile Number:                                       +44 (0)20 7992 2784

         Attention:                                              Swaps & Derivatives Processing

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

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

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

                                       6
<PAGE>

G.       Offices:                                                The Office of Party A is London.

H.       Miscellaneous:
</TABLE>

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.

      If the payment of any Floating Amount II is deferred in accordance with
      Part 5(h)(iii) of 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

HSBC Bank plc

By:   /s/ James Collins
      ---------------------------
Name:  James Collins
Title: Associate
       Duly Authorised Attorney

                                       7
<PAGE>

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:   /s/ Ian Bowden
      ---------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securisation Director No. 1 Limited
       Director

                                       8
<PAGE>

                     HSBC Bank plc Cross-Currency Confirmation (Class 3M1 Notes)
                                                                  Execution Copy

From:             HSBC Bank plc
                  8 Canada Square
                  London
                  E14 5HQ

Attention:        Swaps & Derivatives Processing

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

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

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) and
signed for the purposes of identification by Sidley Austin (now known as Sidley
Austin (UK) LLP) and HSBC Bank plc on 24 January 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

<PAGE>

the Programme Master Definitions Schedule signed for the purposes of
identification by Sidley Austin Brown & Wood (now known as Sidley Austin (UK)
LLP) 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 (UK) LLP) 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 19 January 2007 and the Final Terms dated 22 January
2007 (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 EUR 131,000,000 Series
2007-01 Class 3M1 Notes due December 2054.

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

<TABLE>
<CAPTION>
<S>                                                              <C>
Party A:                                                         HSBC Bank plc

Party B:                                                         Granite Master Issuer plc.

Trade Date:                                                      19 January 2007.

Effective Date:                                                  24 January 2007.

Termination Date:                                                The Floating Rate Payer I Payment Date falling
                                                                 in December 2054.

Exchange Rate:                                                   GBP 1.00: EUR 1.52.

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                  Party A.

         Floating Rate Payer I                                   On any Floating Rate Payer I Payment Date, EUR
         Currency Amount:                                        131,000,000 less the aggregate of the Floating
                                                                 Rate Payer I Interim Exchange Amounts paid
                                                                 prior

                                       2
<PAGE>

                                                                 to such date.

         Floating Rate Payer I                                   Each Note Payment Date (as defined in the
         Payment Dates:                                          Conditions).

         Floating Rate Payer I                                   EURIBOR (as defined in the Conditions).
         Floating Rate Option:

         Floating Rate Payer I                                   3 months; except in respect of the initial
         Designated Maturity:                                    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:                           0.27 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter 0.54
                                                                 per cent. per annum.

         Floating Rate Payer I                                   Actual/360.
         Floating Rate Day Count Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:                                 Party B.

         Floating Rate Payer II                                  On any Floating Rate Payer II Payment Date,
         Currency Amount:                                        GBP 86,184,210.53 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 month in each
         Payment Dates:                                          year during the Term from, and including,
                                                                 February 2007 to, but excluding, the
                                                                 Termination Date, subject to adjustment in
                                                                 accordance

                                       3
<PAGE>

                                                                 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 the initial
         Designated Maturity:                                    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, following the
                                                                 occurrence of a Pass-Through Trigger Event or
                                                                 Step-Up Date.

         Floating Rate Payer II Spread:                          0.2715 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter
                                                                 0.6930 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 Calculation Period;
         Reset Dates:                                            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 TARGET

                                       4
<PAGE>

B.       Initial Exchange:

Initial Exchange Date:                                           Effective Date.

Party A Initial Exchange Amount:                                 GBP 86,184,210.53.

Party B Initial Exchange Amount:                                 EUR 131,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                          Each Note Payment Date (as defined in the
                                                                 Conditions) on which a EUR Amortisation Amount
                                                                 is payable.

Floating Rate Payer I                                            In respect of an Interim Exchange Date, the
Interim Exchange Amount:                                         amount in EUR (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 "EUR
                                                                 Amortisation Amount").

Floating Rate Payer II                                           In respect of any Interim Exchange Date, an
Interim Exchange Amount:                                         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 EUR amount equal to the Floating Rate Payer
Final Exchange Amount:                                           II Final Exchange Amount converted into EUR at
                                                                 the Exchange Rate.

Floating Rate Payer II                                           The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

                                       5
<PAGE>

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in EUR:                                     Bank:    HSBC Bank plc London
                                                                 Acct:   87511552
                                                                 SWIFT: MIDLGB22

Account for Payments in GBP:                                     Bank:    HSBC Bank plc London
                                                                 Acct:    35575058
                                                                 Sort Code : 40-53-71
                                                                 SWIFT : MIDLGB22

Payments to Floating Rate Payer II:

Account for Payments in EUR:                                     Citibank, N.A., London
                                                                 A/C No. 10861537
                                                                 SWIFT: CITIGB2L
                                                                 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:                                           HSBC Bank plc

         Address:                                                8 Canada Square
                                                                 London
                                                                 E14 5HQ

         Facsimile Number:                                       +44 (0)20 7992 2784

         Attention:                                              Swaps & Derivatives Processing

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London

                                       6
<PAGE>

                                                                 EC2V 7EX

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

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

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.
</TABLE>

H.    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) of 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

HSBC Bank plc

By:   /s/ James Collins
      ---------------------------
Name:  James Collins
Title: Associate
       Duly Authorised Attorney

                                       7
<PAGE>

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:   /s/ Ian Bowden
      ---------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securisation Director No. 1 Limited
       Director

                                       8
<PAGE>

                     HSBC Bank plc Cross-Currency Confirmation (Class 2C2 Notes)
                                                                  Execution Copy

From:             HSBC Bank plc
                  8 Canada Square
                  London
                  E14 5HQ

Attention:        Swaps & Derivatives Processing

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

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

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) and
signed for the purposes of identification by Sidley Austin (now known as Sidley
Austin (UK) LLP) and HSBC Bank plc on 24 January 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

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) 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 (UK) LLP) 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 19 January 2007 and the Final Terms dated 22 January
2007 (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 EUR 30,000,000 Series 2007-01
Class 2C2 Notes due December 2054.

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

<TABLE>
<CAPTION>
<S>                                                              <C>
Party A:                                                         HSBC Bank plc

Party B:                                                         Granite Master Issuer plc.

Trade Date:                                                      19 January 2007.

Effective Date:                                                  24 January 2007.

Termination Date:                                                The Floating Rate Payer I Payment Date falling
                                                                 in December 2054.

Exchange Rate:                                                   GBP 1.00: EUR 1.52.

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                  Party A.

         Floating Rate Payer I                                   On any Floating Rate Payer I Payment Date, EUR
         Currency Amount:                                        30,000,000 less the aggregate of the Floating
                                                                 Rate Payer I Interim Exchange Amounts paid
                                                                 prior to such date.

                                       2
<PAGE>

         Floating Rate Payer I                                   Each Note Payment Date (as defined in the
         Payment Dates:                                          Conditions).

         Floating Rate Payer I                                   EURIBOR (as defined in the Conditions).
         Floating Rate Option:

         Floating Rate Payer I                                   3 months; except in respect of the initial
         Designated Maturity:                                    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:                           0.45 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2010; and thereafter 0.90
                                                                 per cent. per annum.

         Floating Rate Payer I                                   Actual/360.
         Floating Rate Day Count Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:                                 Party B.

         Floating Rate Payer II                                  On any Floating Rate Payer II Payment Date,
         Currency Amount:                                        GBP 19,736,842.11 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 month in each
         Payment Dates:                                          year during the Term from, and including,
                                                                 February 2007 to, but excluding, the
                                                                 Termination Date, subject to adjustment in
                                                                 accordance

                                       3
<PAGE>

                                                                 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 the initial
         Designated Maturity:                                    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, following the
                                                                 occurrence of a Pass-Through Trigger Event or
                                                                 Step-Up Date.

         Floating Rate Payer II Spread:                          0.4735 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2010; and thereafter
                                                                 1.0970 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 Calculation Period;
         Reset Dates:                                            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 TARGET

                                       4
<PAGE>

B.       Initial Exchange:

Initial Exchange Date:                                           Effective Date.

Party A Initial Exchange Amount:                                 GBP 19,736,842.11.

Party B Initial Exchange Amount:                                 EUR 30,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                          Each Note Payment Date (as defined in the
                                                                 Conditions) on which a EUR Amortisation Amount
                                                                 is payable.

Floating Rate Payer I                                            In respect of an Interim Exchange Date, the
Interim Exchange Amount:                                         amount in EUR (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 "EUR
                                                                 Amortisation Amount").

Floating Rate Payer II                                           In respect of any Interim Exchange Date, an
Interim Exchange Amount:                                         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 EUR amount equal to the Floating Rate Payer
Final Exchange Amount:                                           II Final Exchange Amount converted into EUR at
                                                                 the Exchange Rate.

Floating Rate Payer II                                           The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

                                       5
<PAGE>

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in EUR:                                     Bank:    HSBC Bank plc London
                                                                 Acct:   87511552
                                                                 SWIFT: MIDLGB22

Account for Payments in GBP:                                     Bank:    HSBC Bank plc London
                                                                 Acct:    35575058
                                                                 Sort Code : 40-53-71
                                                                 SWIFT : MIDLGB22

Payments to Floating Rate Payer II:

Account for Payments in EUR:                                     Citibank, N.A., London
                                                                 A/C No. 10861537
                                                                 SWIFT: CITIGB2L
                                                                 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:                                           HSBC Bank plc

         Address:                                                8 Canada Square
                                                                 London
                                                                 E14 5HQ

         Facsimile Number:                                       +44 (0)20 7992 2784

         Attention:                                              Swaps & Derivatives Processing

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London

                                       6
<PAGE>

                                                                 EC2V 7EX
With a copy to:                                                  Northern Rock plc
                                                                 Northern Rock House
                                                                 Gosforth
                                                                 Newcastle upon Tyne
                                                                 NE3 4PL

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

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.
</TABLE>

H.    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) of 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

HSBC Bank plc

By:   /s/ James Collins
      ---------------------------
Name:  James Collins
Title: Associate
       Duly Authorised Attorney

                                       7
<PAGE>

By:

Name:
Title:

Confirmed as of the date first written:

Granite Master Issuer plc

By:   /s/ Ian Bowden
      ---------------------------
Name:  Ian Bowden
Title: Representing L.D.C. Securisation Director No. 1 Limited
       Director

                                       8
<PAGE>

                     HSBC Bank plc Cross-Currency Confirmation (Class 3C1 Notes)
                                                                  Execution Copy

From:             HSBC Bank plc
                  8 Canada Square
                  London
                  E14 5HQ

Attention:        Swaps & Derivatives Processing

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

Attention:        Securitisation Team, Risk Operations

                                                                 24 January 2007

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) and
signed for the purposes of identification by Sidley Austin (now known as Sidley
Austin (UK) LLP) and HSBC Bank plc on 24 January 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

<PAGE>

Programme Master Definitions Schedule signed for the purposes of identification
by Sidley Austin Brown & Wood (now known as Sidley Austin (UK) LLP) 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 (UK) LLP) 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 19 January 2007 and the Final Terms dated 22 January
2007 (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 EUR 265,000,000 Series
2007-01 Class 3C1 Notes due December 2054.

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

<TABLE>
<CAPTION>
<S>                                                              <C>
Party A:                                                         HSBC Bank plc

Party B:                                                         Granite Master Issuer plc.

Trade Date:                                                      19 January 2007.

Effective Date:                                                  24 January 2007.

Termination Date:                                                The Floating Rate Payer I Payment Date falling
                                                                 in December 2054.

Exchange Rate:                                                   GBP 1.00: EUR 1.52.

A.       Floating Payments

Floating Amounts I:

         Floating Rate Payer I:                                  Party A.

         Floating Rate Payer I                                   On any Floating Rate Payer I Payment Date, EUR
         Currency Amount:                                        265,000,000 less the aggregate of the Floating
                                                                 Rate Payer I Interim Exchange Amounts paid
                                                                 prior

                                       2
<PAGE>

                                                                 to such date.

         Floating Rate Payer I                                   Each Note Payment Date (as defined in the
         Payment Dates:                                          Conditions).

         Floating Rate Payer I                                   EURIBOR (as defined in the Conditions).
         Floating Rate Option:

         Floating Rate Payer I                                   3 months; except in respect of the initial
         Designated Maturity:                                    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:                           0.50 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter 1.00
                                                                 per cent. per annum.

         Floating Rate Payer I                                   Actual/360.
         Floating Rate Day Count Fraction:

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

Floating Amounts II:

         Floating Rate Payer II:                                 Party B.

         Floating Rate Payer II                                  On any Floating Rate Payer II Payment Date,
         Currency Amount:                                        GBP 174,342,105.26 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 month in each
         Payment Dates:                                          year during the Term from, and including,
                                                                 February 2007 to, but excluding, the
                                                                 Termination Date, subject to adjustment in
                                                                 accordance

                                       3
<PAGE>

                                                                 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 the initial
         Designated Maturity:                                    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, following the
                                                                 occurrence of a Pass-Through Trigger Event or
                                                                 Step-Up Date.

         Floating Rate Payer II Spread:                          0.5330 per cent. per annum for the Calculation
                                                                 Periods up to and including the Calculation
                                                                 Period ending on, but excluding, the Payment
                                                                 Date falling in June 2012; and thereafter
                                                                 1.2160 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 Calculation Period;
         Reset Dates:                                            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 TARGET

                                       4
<PAGE>

B.       Initial Exchange:

Initial Exchange Date:                                           Effective Date.

Party A Initial Exchange Amount:                                 GBP 174,342,105.26.

Party B Initial Exchange Amount:                                 EUR 265,000,000.

C.       Interim Exchange:

Interim Exchange Dates:                                          Each Note Payment Date (as defined in the
                                                                 Conditions) on which a EUR Amortisation Amount
                                                                 is payable.

Floating Rate Payer I                                            In respect of an Interim Exchange Date, the
Interim Exchange Amount:                                         amount in EUR (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 "EUR
                                                                 Amortisation Amount").

Floating Rate Payer II                                           In respect of any Interim Exchange Date, an
Interim Exchange Amount:                                         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 EUR amount equal to the Floating Rate Payer
Final Exchange Amount:                                           II Final Exchange Amount converted into EUR at
                                                                 the Exchange Rate.

Floating Rate Payer II                                           The Floating Rate Payer II Currency Amount.
Final Exchange Amount:

                                       5
<PAGE>

E.       Account Details:

Payments to Floating Rate Payer I:

Account for Payments in EUR:                                     Bank:    HSBC Bank plc London
                                                                 Acct:   87511552
                                                                 SWIFT: MIDLGB22

Account for Payments in GBP:                                     Bank:    HSBC Bank plc London
                                                                 Acct:    35575058
                                                                 Sort Code : 40-53-71
                                                                 SWIFT : MIDLGB22

Payments to Floating Rate Payer II:

Account for Payments in EUR:                                     Citibank, N.A., London
                                                                 A/C No. 10861537
                                                                 SWIFT: CITIGB2L
                                                                 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:                                           HSBC Bank plc

         Address:                                                8 Canada Square
                                                                 London
                                                                 E14 5HQ

         Facsimile Number:                                       +44 (0)20 7992 2784

         Attention:                                              Swaps & Derivatives Processing

Floating Rate Payer II:                                          Granite Master Issuer plc

         Address:                                                Fifth Floor
                                                                 100 Wood Street
                                                                 London

                                       6
<PAGE>

                                                                 EC2V 7EX

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

         Facsimile Number:                                       +44 (0)191 279 4929

         Attention:                                              Andy McLean / Claire Blackett

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.
</TABLE>

H.    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) of 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

HSBC Bank plc

By:   /s/ James Collins
      ---------------------------
Name:  James Collins
Title: Associate
       Duly Authorised Attorney

By:

Name:
Title:

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
       Director

                                       8Exhibit 10.4.2

                       START-UP LOAN TRANCHE SUPPLEMENT

This Start-Up Loan Tranche Supplement is made between Northern Rock plc (the
"Issuer Start-Up Loan Provider"), Granite Master Issuer plc ("Master Issuer")
and The Bank of New York (the "Issuer Security Trustee") in relation to the
provision of a Start-Up Loan Tranche by the Issuer Start-Up Loan Provider to
the Master Issuer on the following terms:

o   Closing Date        -    24 January, 2007

o   Principal amount    -    (GBP)99,150,000

o   Interest rate       -    LIBOR for one month sterling deposits plus 0.9 per
                             cent. per annum

o   Payment Dates       -    Each Monthly Payment Date or, if such date is
                             not a London Business Day, then the next following
                             London Business Day

This Start-Up Loan Tranche Supplement is supplemental to the Start-Up Loan
Agreement dated 19 January, 2005, as the same may be amended from time to
time, between the parties hereto (the "Start-Up Loan Agreement"). Capitalised
terms used and not otherwise defined herein shall have the meanings assigned
to them in the Start-Up Loan Agreement.

This Start-Up Loan Tranche Supplement is made on 24 January, 2007.

as Master Issuer
EXECUTED for and on behalf of                      )
GRANITE MASTER ISSUER PLC                          )
acting by a director                               )

/s/ Ian Bowden
-------------------------
Name:  Ian Bowden
       Representing L.D.C. Securitisation Director No. 1 Limited

as Issuer Start-Up Loan Provider
EXECUTED for and on behalf of                      )
NORTHERN ROCK PLC                                  )
by                                                 )

/s/ David Johnson
-------------------------
Name: David Johnson

<PAGE>

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

/s/ Helen Kim
-------------------------
Name: Helen Kim
Vice President
The Bank of New York

                                       2

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