Document:

<PAGE>

(MULTICURRENCY--CROSS BORDER)
                                     ISDA(R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                          dated as of      March 2004

                        BARCLAYS BANK PLC ("PARTY A") AND
  PERPETUAL TRUSTEES VICTORIA LIMITED (ABN 47 004 027 258) IN ITS CAPACITY AS
    TRUSTEE OF THE INTERSTAR MILLENNIUM SERIES 2004-2G TRUST ("PARTY B") AND
      INTERSTAR SECURITISATION MANAGEMENT PTY LIMITED (ABN 56 100 346 898)
                             (THE "TRUST MANAGER")

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

Accordingly, the parties agree as follows:--

1.       INTERPRETATION

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

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

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

2.       OBLIGATIONS

(a) GENERAL CONDITIONS.

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

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

--------------------------------------------------------------------------------
                                                                          Page 1
<PAGE>

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

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

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

         (i) in the same currency; and

         (ii) in respect of the same Transaction,

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

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

(d) DEDUCTION OR WITHHOLDING FOR TAX.

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

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

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

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

--------------------------------------------------------------------------------
                                                                          Page 2
<PAGE>

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

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

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

         (ii) LIABILITY.  If:--

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

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

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

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

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

3.       REPRESENTATIONS

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

(a)      BASIC REPRESENTATIONS.

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

--------------------------------------------------------------------------------
                                                                          Page 3

<PAGE>

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

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

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

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

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

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

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

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

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

4.       AGREEMENTS

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

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

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

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

--------------------------------------------------------------------------------
                                                                          Page 4
<PAGE>

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

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

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

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

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

(e) PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated, organized, managed and
controlled, or considered to have its seat, or in which a branch or office
through which it is acting for the purpose of this Agreement is located ("Stamp
Tax Jurisdiction") and will indemnify the other party against any Stamp Tax
levied or imposed upon the other party or in respect of the other party's
execution or performance of this Agreement by any such Stamp Tax Jurisdiction
which is not also a Stamp Tax Jurisdiction with respect to the other party.

5.       EVENTS OF DEFAULT AND TERMINATION EVENTS

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

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

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

         (iii) CREDIT SUPPORT DEFAULT.

--------------------------------------------------------------------------------
                                                                          Page 5
<PAGE>

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

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

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                          Page 6

<PAGE>

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

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

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                          Page 7

<PAGE>

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

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

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

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

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

  6.     EARLY TERMINATION

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

--------------------------------------------------------------------------------
                                                                          Page 8

<PAGE>

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

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

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

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

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

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

         (iv) RIGHT TO TERMINATE. If:--

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

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

         either party in the case of an Illegality, the Burdened Party in the
         case of a Tax Event Upon Merger, any Affected Party in the case of a
         Tax Event or an Additional Termination Event if there is more than one
         Affected Party, or the party which is not the Affected Party in the
         case of a Credit Event Upon Merger or an Additional Termination Event
         if there is only one Affected Party may, by not more than 20 days
         notice to the other party and provided that the relevant Termination
         Event is then continuing, designate a day not earlier than the day such
         notice is effective as an Early Termination Date in respect of all
         Affected Transactions.

(c) EFFECT OF DESIGNATION.

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

--------------------------------------------------------------------------------
                                                                          Page 9

<PAGE>

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

(d) CALCULATIONS.

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

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

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

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

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

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

               (3) Second Method and Market Quotation. If the Second Method and
               Market Quotation apply, an amount will be payable equal to (A)
               the sum of the Settlement Amount (determined by the
               Non-defaulting Party) in respect of the Terminated Transactions
               and the Termination Currency Equivalent of the Unpaid Amounts
               owing to the Non-defaulting Party less (B) the Termination
               Currency Equivalent of the Unpaid Amounts owing to the Defaulting
               Party. If that amount is a positive

--------------------------------------------------------------------------------
                                                                         Page 10

<PAGE>

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

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

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

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

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 11
<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 the purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

--------------------------------------------------------------------------------
                                                                         Page 12
<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 be entered into as soon as
         practicable and may be executed and delivered in counterparts
         (including by facsimile transmission) or be created by an exchange of
         telexes or by an exchange of electronic messages on an electronic
         messaging system, which in each case will be sufficient for all
         purposes to evidence a binding supplement to this Agreement. The
         parties will specify therein or through another effective means that
         any such counterpart, telex or electronic message constitutes a
         Confirmation.

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

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

10.      OFFICES; MULTIBRANCH PARTIES

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 13
<PAGE>

11.      EXPENSES

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

12.      NOTICES

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

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

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

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

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

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

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

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

13.      GOVERNING LAW AND JURISDICTION

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 14
<PAGE>

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

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

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

14.      DEFINITIONS

As used in this Agreement:--

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

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

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

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

"APPLICABLE RATE" means:--

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 15
<PAGE>

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

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

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

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

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

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

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(b)(iv).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if
applicable, in the Schedule.

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 16
<PAGE>

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date. For this
purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment
or delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction would
be subject to such documentation as such party and the Reference Market-maker
may, in good faith, agree. The party making the determination (or its agent)
will request each Reference Market-maker to provide its quotation to the extent
reasonably practicable as of the same day and time (without regard to different
time zones) on or as soon as reasonably practicable after the relevant Early
Termination Date. The day and time as of which those quotations are to be
obtained will be selected in good faith by the party obligated to make a
determination under Section 6(e), and, if each party is so obliged, after
consultation with the other. If more than three quotations are provided, the
Market Quotation will be the arithmetic mean of the quotations, without regard
to the quotations having the highest and lowest values. If exactly three such
quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more
than one quotation has the same highest value or lowest value, then one of such
quotations shall be disregarded. If fewer than three quotations are provided, it
will be deemed that the Market Quotation in respect of such Terminated
Transaction or group of Terminated Transactions cannot be determined.

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 17
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 18
<PAGE>

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

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

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 19
<PAGE>

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

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

                                           Perpetual Trustees Victoria Limited
                                          (ABN 47 004 027 258) in its capacity
                                          as trustee of the Interstar Millennium
            Barclays Bank PLC                     Series 2004-2G Trust
........................................  .......................................
                (Party A)                                (Party B)

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

 Interstar Securitisation Management
  Pty Limited (ABN 56 100 346 898)

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

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

--------------------------------------------------------------------------------
                                                                         Page 20

<PAGE>

                                    SCHEDULE

                                     TO THE

                              ISDA MASTER AGREEMENT

                          DATED AS OF       MARCH 2004

                                     Between

                          BARCLAYS BANK PLC ("PARTY A")

                                       AND

  PERPETUAL TRUSTEES VICTORIA LIMITED (ABN 47 004 027 258) IN ITS CAPACITY AS
      TRUSTEE OF THE INTERSTAR MILLENNIUM SERIES 2004-2G TRUST ("PARTY B")

                                       AND

      INTERSTAR SECURITISATION MANAGEMENT PTY LIMITED (ABN 56 100 346 898)
                             (THE "TRUST MANAGER")

                                     PART 1

                             TERMINATION PROVISIONS

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

(b)      "SPECIFIED TRANSACTION" is not applicable.

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

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

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

                  "(i) FAILURE TO PAY OR DELIVER. Failure by the party to make
                  when due any payment under this Agreement or delivery under
                  Section 2(a)(i) or 2(e) required to be made by it if such
                  failure is not remedied at or before 10:00am on the tenth
                  Local Business Day after the due date, except that:

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

--------------------------------------------------------------------------------
                                                                         Page 21
<PAGE>

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

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

         For the avoidance of doubt, there will be no failure to pay by Party B
         to Party A for the purposes of Section 5(a)(i) to the extent that Party
         B pays to Party A on each Payment Date the amounts available to Party B
         on that Payment Date for payment to Party A under (in the case of the
         Class A Currency Swap) clauses 6.5(a)(v)(C)(1), 6.5(a)(v)(D),
         6.5(a)(xi)(B), 6.6(h)(i)(A) and 6.6(i)(i)(A) of the Series Notice, (in
         the case of the Class AB Currency Swap) clauses 6.5(a)(vi)(A)(1),
         6.5(a)(vi)(B), 6.5(a)(xi)(B), 6.6(h)(ii)(A) and 6.6(i)(ii)(A) and (in
         the case of the Class B Currency Swap) clauses 6.5(a)(vii)(A)(1),
         6.5(a)(vii)(B), 6.5(a)(xi)(B), 6.6(h)(iii)(A) and 6.6(i)(iii)(A)of the
         Series Notice.

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

         will not apply to Party A.
         will not apply to Party B.

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

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

                           "(aa)    RESTRICTED TERMINATION RIGHTS

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

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

                                    (iii)   TRANSFER WHERE PARTY B DOES NOT
                                            GROSS-UP: If any payment by Party B
                                            to Party A under this Agreement is,
                                            or is likely to be, made subject to
                                            any deduction or withholding on
                                            account of Tax, Party B will
                                            endeavor to procure the substitution
                                            as

--------------------------------------------------------------------------------
                                                                         Page 23
<PAGE>

                                            principal obligor under this
                                            Agreement in respect of each
                                            affected Transaction of a Party B
                                            incorporated in another jurisdiction
                                            approved by Party A and the Note
                                            Trustee and in respect of which the
                                            Designated Rating Agencies confirm
                                            that the substitution will not cause
                                            a reduction or withdrawal of the
                                            rating of any Notes."

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

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

         (i)      Market Quotation will apply; and

         (ii)     the Second Method will apply.

(l)      In Section 6(e), delete the sentence at the end of the first paragraph:
         "The amount, if any, payable in respect of an Early Termination Date
         and determined pursuant to this Section will be subject to any
         Set-off."

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

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

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

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

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

                  "(c) in the event that a trustee is appointed as a successor
                  to Party B under the Master Trust Deed and the Series Notice
                  (the "SUCCESSOR TRUSTEE"), Party A undertakes that it shall
                  (unless, at the time the Successor Trustee is so appointed,
                  Party A is entitled to terminate the Transaction under Section
                  6, in which case it may)

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

<PAGE>

                  execute a novation agreement novating to the Successor Trustee
                  the Transaction on the same terms or on other terms to be
                  agreed between Party A, Party B and the Successor Trustee, and
                  give written notice to each Designated Rating Agency of such
                  novation."

                                     PART 2

                               TAX REPRESENTATIONS

(a)      PAYER TAX REPRESENTATIONS

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

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

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

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

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

(b)      PAYEE TAX REPRESENTATIONS

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 25
<PAGE>

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

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

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

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

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

                                     PART 3

                            DOCUMENTS TO BE DELIVERED

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

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

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

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

(b)      Other documents to be delivered are:

<TABLE>
<CAPTION>
------------------------ ------------------------------- ------------------------ ------------------
<S>                      <C>                             <C>                      <C>
PARTY REQUIRED TO        DOCUMENT                        DATE BY WHICH TO BE      COVERED BY
DELIVER                                                  DELIVERED                SECTION 3(D)
                                                                                  REPRESENTATIONS
------------------------ ------------------------------- ------------------------ ------------------
Party A, Party B and     A copy of the power of          On execution and         Yes.
the Trust Manager.       attorney authorising            delivery of this
                         execution by the attorney of    Agreement.
                         this Agreement.
------------------------ ------------------------------- ------------------------ ------------------
Party A, Party B and     A list of authorised            On execution of any      Yes.
the Trust Manager.       signatories for the party and   relevant Confirmation.
                         evidence satisfactory in form
                         and substance to the other
                         parties of the authority of
                         the authorised signatories of
                         the party to execute each
                         Confirmation on behalf of
                         that party.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of the Master Trust      On execution and         No.
                         Deed, the Series Notice, the    delivery of this
                         Security Trust Deed, the Note   Agreement or in the
                         Trust Deed, the Notice of       case of a document not
                         Creation of Trust and the       executed as at the
                         Agency Agreement.               date of this
                                                         Agreement, upon
                                                         execution of that
                                                         document.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of an Australian legal   On or before the Note    No.
                         opinion addressed to, among     Issue Date.
                         others, Party A in form and
                         substance satisfactory to
                         Party A.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of an Australian tax     On or before the Note    No.
                         opinion addressed to, among     Issue Date.
                         others, Party A in form and
                         substance satisfactory to
                         Party A.
------------------------ ------------------------------- ------------------------ ------------------
Trust Manager.           A copy of any notice provided   At such time as the      Yes.
                         by the Trust Manager to the     relevant notice is
                         US$ Noteholders.                provided by the Trust
                                                         Manager to the US$
                                                         Noteholders.
------------------------ ------------------------------- ------------------------ ------------------
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 27
<PAGE>

                                     PART 4

                                  MISCELLANEOUS

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

         ADDRESS FOR NOTICES TO PARTY A:

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

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

         Attention:        Derivatives Director, Legal Division (marked urgent)

         Facsimile:        (+44) 207 773 4932

         Telephone:        (+44) 207 773 2224

         ADDRESS FOR NOTICES TO PARTY B:

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

         Attention:        Manager Securitisation

         Facsimile:        612 9221 7870

         Telex:            N/A

         ADDRESS FOR NOTICES TO THE TRUST MANAGER:

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

         Attention:        Managing Director

         Facsimile:        613 9621 2368

         Telex:            N/A

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

         Party A appoints as its Process Agent:     Not applicable.

         Party B appoints as its Process Agent:

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

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

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

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

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

<PAGE>

         Party B is not a Multibranch Party.

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

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

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

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

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

         (i)      In relation to Party A:  Nil.
         (ii)     In relation to Party B:  Nil.

(f)      CREDIT SUPPORT PROVIDER:

         (i)      In relation to Party A:  Nil.
         (ii)     In relation to Party B:  Nil.

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

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

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

                                     PART 5

                                OTHER PROVISIONS

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

         Each payment will be by way of exchange for the corresponding payment
         or payments payable by the other party and, in the case of any payment
         payable by Party A to Party B, will be discharged by Party A depositing
         that payment by 10.00am (New York time) on the due date into the US$
         Account."

--------------------------------------------------------------------------------
                                                                         Page 29
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

(i)      Section 12 is amended as follows:

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

--------------------------------------------------------------------------------
                                                                         Page 30
<PAGE>

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

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

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

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

         (i)      New definitions are inserted as follows:

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

                  "TRUST" means the Interstar Millennium Series 2004-2G Trust.

                  (ii)     The definition of Tax is replaced with:

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

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

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

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

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

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

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

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

         (i)      any Confirmation;

--------------------------------------------------------------------------------
                                                                         Page 32
<PAGE>

         (ii)     the Schedule to the Master Agreement;

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

         (iv)     the ISDA Definitions.

(n)      Any reference to a:

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

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

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

"15.     LIMITATION OF PARTY B'S LIABILITY

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

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

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

         (d)      It is acknowledged that the Relevant Parties are responsible
                  under the Transaction Documents for performing a variety of
                  obligations relating to the Trust. No act or omission of Party
                  B (including any related failure to satisfy its obligations or
                  breach of representation or warranty under the Transaction
                  Documents) will be considered

--------------------------------------------------------------------------------
                                                                         Page 33
<PAGE>

                  fraud, negligence or wilful default of Party B for the purpose
                  of paragraph (c) of this Section 15 to the extent to which the
                  act or omission was caused or contributed to by any failure by
                  the Relevant Parties (other than a person whose acts or
                  omissions Party B is liable for in accordance with the
                  Transaction Documents) to fulfil its obligations relating to
                  the Trust or by any other act or omission of the Relevant
                  Parties (other than a person whose acts or omissions Party B
                  is liable for in accordance with the Transaction Documents)
                  regardless of whether or not that act or omission is purported
                  to be done on behalf of Party B.

         (e)      No attorney, agent, receiver or receiver and manager appointed
                  in accordance with a Transaction Document has authority to act
                  on behalf of Party B in a way which exposes Party B to any
                  personal liability and no act or omission of any such person
                  will be considered fraud, negligence or wilful default of
                  Party B for the purpose of paragraph (c) of this Section 15,
                  provided (in the case of any person selected and appointed by
                  Party B) that Party B has exercised reasonable care in the
                  selection of such persons.

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

16.      REPLACEMENT CURRENCY SWAP

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

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

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

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

(b)               If the conditions in Section 16(a) are satisfied, Party B
                  must, at the direction of the Trust Manager, enter into the
                  Replacement Currency Swap and if it does so it must direct the
                  Replacement Currency Swap provider to pay any upfront premium
                  to enter into

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

                  the Replacement Currency Swap due to Party B directly to Party
                  A in satisfaction of and to the extent of Party B's obligation
                  to pay the Settlement Amount to Party A as referred to in
                  Section 16(a) and to the extent that such premium is not
                  greater than or equal to the Settlement Amount, the balance
                  must be satisfied by Party B as an Expense of the Trust.

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

17.      NOVATION

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

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

(b)      the New Counterparty has the Required Rating.

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

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 35
<PAGE>

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

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

(r)      Insert new Section 18 as follows:

18.      RATING DOWNGRADE

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

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

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

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

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

                  (i)      either:

                           (A)      within 5 Business Days (or such greater
                                    period as agreed by the relevant Designated
                                    Rating Agency) deposit into a Swap
                                    Collateral Account and maintain in that Swap
                                    Collateral Account (whilst the relevant
                                    Downgrade subsists) sufficient funds to
                                    ensure that the amount standing to the
                                    credit of the Swap Collateral Account is
                                    equal to the Credit Support Amount (or such
                                    lesser amount as agreed with the relevant
                                    Designated Rating Agency); or

--------------------------------------------------------------------------------
                                                                         Page 36
<PAGE>

                           (B)      acquire in the name of Party B or transfer
                                    to Party B Eligible Credit Support that
                                    matures on or prior to the next Payment Date
                                    with an aggregate face amount equal to the
                                    Credit Support Amount (or such lesser amount
                                    as agreed with the relevant Designated
                                    Rating Agency);

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

                  (iii)    procure another person to become co-obligor in
                           respect of the obligations of Party A under each
                           Transaction. Such co-obligor may be either:

                           (A)      a person with the Required Rating domiciled
                                    in the same legal jurisdiction as Party A or
                                    Party B; or

                           (B)      a person otherwise acceptable to each
                                    Designated Rating Agency; or

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

         (d)      If, at any time, Party A's obligations under a Transaction are
                  novated in accordance with Section 18(c)(ii), a co-obligor is
                  procured in accordance with Section 18(c)(iii) or any
                  Acceptable Arrangement is entered into in accordance with
                  Section 18(c)(iv) which results in Party A being replaced as
                  Currency Swap Provider (the "REPLACED CURRENCY SWAP
                  PROVIDER"), the Replaced Currency Swap Provider shall be
                  immediately entitled to any Credit Support Amount which it has
                  deposited in a Swap Collateral Account.

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

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

                  (i)      novating the Replaced Currency Swap Provider's
                           obligations under each Transaction in accordance with
                           Section 18(c)(ii), enabling a co-obligor to be
                           procured in

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

<PAGE>

                           accordance with Section 18(c)(iii) or entering into
                           any other Acceptable Arrangement in accordance with
                           18(c)(iv);

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

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

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

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

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

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

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

                  (iii)    the date on which a co-obligor has been procured in
                           accordance with Section 18(c)(iii); and

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 38
<PAGE>

         (i)      The Credit Support Amount must be denominated in US$ or in
                  such other currency as approved by each Designated Rating
                  Agency.

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

EXECUTED in London and Sydney.

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

--------------------------------------------------------------------------------
                                                                         Page 39
<PAGE>

PARTY A

SIGNED on behalf of                      )
BARCLAYS BANK PLC                        )
                                            ------------------------------------
by its attorneys under power of attorney )  Signature
in the presence of:                      )

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

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

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

PARTY B

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

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

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

TRUST MANAGER

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

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

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

--------------------------------------------------------------------------------
                                                                         Page 40
<PAGE>

                                     ISDA(R)
              INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

                              CREDIT SUPPORT ANNEX

                             to the Schedule to the

                              ISDA MASTER AGREEMENT

                          dated as of       March 2004

                                     between

  Barclays Bank PLC     and      Perpetual Trustees Victoria Limited in its
       ("PARTY A")               capacity as trustee of the Interstar Millennium
                                 Series 2004-2G Trust
                                                 ("PARTY B")

                                   and

      Interstar Securitisation Management Pty Limited (ABN 56 100 346 898)
                              (the "TRUST MANAGER")

This Annex supplements, forms part of, and is subject to, the ISDA Master
Agreement referred to above and is part of its Schedule. For the purposes of
this Agreement, including, without limitation, Sections 1(c), 2(a), 5 and 6, the
credit support arrangements set out in this Annex constitute a Transaction (for
which this Annex constitutes the Confirmation).

PARAGRAPH 1.  INTERPRETATION

Capitalised terms not otherwise defined in this Annex or elsewhere in this
Agreement have the meanings specified pursuant to Paragraph 10, and all
references in this Annex to Paragraphs are to Paragraphs of this Annex. In the
event of any inconsistency between this Annex and the other provisions of this
Schedule, this Annex will prevail, and in the event of any inconsistency between
Paragraph 11 and the other provisions of this Annex, Paragraph 11 will prevail.
For the avoidance of doubt, references to "transfer" in this Annex mean, in
relation to cash, payment, and in relation to the assets, delivery.

PARAGRAPH 2.  CREDIT SUPPORT OBLIGATIONS

(a) DELIVERY AMOUNT. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferee on or promptly following a Valuation Date, if the Delivery Amount for
that Valuation Date equals or exceeds the Transferor's Minimum Transfer Amount,
then the Transferor will transfer to the Transferee Eligible Credit Support
having a Value as of the date of transfer at least equal to the applicable
Delivery Amount (rounded pursuant to Paragraph 11(b)(iii)(D)). Unless otherwise
specified in Paragraph 11(b), the "Delivery Amount" applicable to the Transferor
for any Valuation Date will equal the amount by which:

         (i) the Credit Support Amount

         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

--------------------------------------------------------------------------------
                                                                          Page 1
<PAGE>

         case, has not yet been completed and for which the relevant Settlement
         Day falls on or after such Valuation Date).

(b) RETURN AMOUNT. Subject to Paragraphs 3 and 4, upon a demand made by the
Transferor on or promptly following a Valuation Date, if the Return Amount for
that Valuation Date equals or exceeds the Transferee's Minimum Transfer Amount,
then the Transferee will transfer to the Transferor Equivalent Credit Support
specified by the Transferor in that demand having a Value as of the date of
transfer as close as practicable to the applicable Return Amount (rounded
pursuant to Paragraph 11(b)(iii)(D)) and the Credit Support Balance will, upon
such transfer, be reduced accordingly. Unless otherwise specified in Paragraph
11(b), the "Return Amount" applicable to the Transferee for any Valuation Date
will equal the amount by which:

         (i) the Value as of that Valuation Date of the Transferor's Credit
         Support Balance (adjusted to include any prior Delivery Amount and to
         exclude any prior Return Amount, the transfer of which, in each case,
         has not yet been completed and for which the relevant Settlement Day
         falls on or after such Valuation Date).

         exceeds

         (ii) the Credit Support Amount.

PARAGRAPH 3.  TRANSFERS, CALCULATIONS AND EXCHANGES

(a) TRANSFERS. All transfers under this Annex of any Eligible Credit Support,
Equivalent Credit Support, Interest Amount or Equivalent Distributions shall be
made in accordance with the instructions of the Transferee or Transferor, as
applicable, and shall be made:

         (i) in the case of cash, by transfer into one or more bank accounts
         specified by the recipient;

         (ii) in the case of certificated securities which cannot or which the
         parties have agreed will not be delivered by book-entry, by delivery in
         appropriate physical form to the recipient or its account accompanied
         by any duly executed instruments of transfer, transfer tax stamps and
         any other documents necessary to constitute a legally valid transfer of
         the transferring party's legal and beneficial title to the recipient;
         and

         (iii) in the case of securities which the parties have agreed will be
         delivered by book-entry, by the giving of written instructions
         (including, for the avoidance of doubt, instructions given by telex,
         facsimile transmission or electronic messaging system) to the relevant
         depository institution or other entity specified by the recipient,
         together with a written copy of the instructions to the recipient,
         sufficient, if complied with, to result in a legally effective transfer
         of the transferring party's legal and beneficial title to the
         recipient.

Subject to Paragraph 4 and unless otherwise specified, if a demand for the
transfer of Eligible Credit Support or Equivalent Credit Support is received by
the Notification Time, then the 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

--------------------------------------------------------------------------------
                                                                          Page 2
<PAGE>

         of its consent and (B) the Transferee will be obliged to transfer to
         the Transferor Equivalent Credit Support in respect of the Original
         Credit Support not later than the Settlement Day following the date on
         which the Transferee receives the New Credit Support, unless otherwise
         specified in Paragraph 11(d) (the "Exchange Date"); provided that the
         Transferee will only be obliged to transfer Equivalent Credit Support
         with a Value as of the date of transfer as close as practicable to, but
         in any event not more than, the Value of the New Credit Support as of
         that date.

PARAGRAPH 4. DISPUTE RESOLUTION

(a) DISPUTED CALCULATIONS OR VALUATIONS. If a party (a "Disputing Party")
reasonably disputes (I) the Valuation Agent's calculation of a Delivery Amount
or a Return Amount or (II) the Value of any transfer of Eligible Credit Support
or Equivalent Credit Support, then:

         (1) the Disputing Party will notify the other party and the Valuation
         Agent (if the Valuation Agent is not the other party) not later than
         the close of business on the Local Business Day following, in the case
         of (I) above, the date that the demand is received under Paragraph 2
         or, in the case of (II) above, the date of transfer;

         (2) in the case of (I) above, the appropriate party will transfer the
         undisputed amount to the other party not later than the close of
         business on the Settlement Day following the date that the demand is
         received under Paragraph 2;

         (3) the parties will consult with each other in an attempt to resolve
         the dispute; and

         (4) if they fail to resolve the dispute by the Resolution Time. then:

                  (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 3

<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
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

--------------------------------------------------------------------------------
                                                                          Page 4
<PAGE>

of the Equivalent Credit Support, Equivalent Distributions or Interest Amount.
This interest will be calculated on the basis of daily compounding and the
actual number of days elapsed.

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

(c) DEMANDS AND NOTICES. All demands and notices given by a party under this
Annex will be given as specified in Section 12 of this Agreement.

(d) SPECIFICATIONS OF CERTAIN MATTERS. Anything referred to in this Annex as
being specified in Paragraph 11 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.
PARAGRAPH 10. DEFINITIONS

As used in this Annex:

"Base Currency" means the currency specified as such in Paragraph 11(a)(i).

"Base Currency Equivalent" means, with respect to an amount on a Valuation Date,
in the case of an amount denominated in the Base Currency, such Base Currency
and, in the case of an amount denominated in a currency other than the Base
Currency (the "Other Currency"), the amount of Base Currency required to
purchase such amount of the Other Currency at the spot exchange rate determined
by the Valuation Agent for value on such Valuation Date.

"Credit Support Amount" means, with respect to a Transferor on a Valuation Date,
(i) the Transferee's Exposure plus (ii) all Independent Amounts applicable to
the Transferor, if any, minus (iii) all Independent Amounts applicable to the
Transferee, if any, minus (iv) the Transferor's Threshold; provided, however,
that the Credit Support Amount will be deemed to be zero whenever the
calculation of Credit Support Amount yields a number less than zero.

"Credit Support Balance" means, with respect to a Transferor on a Valuation
Date, the aggregate of all Eligible Credit Support that has been transferred to
or received by the Transferee under this Annex, together with any Distributions
and all proceeds of any such Eligible Credit Support or Distributions, as
reduced pursuant to Paragraph 2(b), 3(c)(ii) or 6. Any Equivalent Distributions
or Interest Amount (or portion of either) not transferred pursuant to Paragraph
5(c)(i) or (ii) will form part of the Credit Support Balance.

"Delivery Amount" has the meaning specified in Paragraph 2(a).

"Disputing Party" has the meaning specified in Paragraph 4.

"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).

--------------------------------------------------------------------------------
                                                                          Page 5

<PAGE>

"Exposure" means, with respect to a party on a Valuation Date and subject to
Paragraph 4 in the case of a dispute, the amount, if any, that would be payable
to that party by the other party (expressed as a positive number) or by that
party to the other party (expressed as a negative number) pursuant to Section
6(e)(ii)(1) of this Agreement if all Transactions (other than the Transaction
constituted by this Annex) were being terminated as of the relevant Valuation
Time, on the basis that (i) that party is not the Affected Party and (ii) the
Base Currency is the Termination Currency; provided that Market Quotations will
be determined by the Valuation Agent on behalf of that party using its estimates
at mid-market of the amounts that would be paid for Replacement Transactions (as
that term is defined in the definition of "Market Quotation").

"Independent Amount" means, with respect to a party, the Base Currency
Equivalent of the amount specified as such for that party in Paragraph
11(b)(iii)(A); if not amount is specified, zero.

"Interest Amount" means, with respect to an Interest Period, the aggregate sum
of the Base Currency Equivalents of the amounts of interest determined for each
relevant currency and calculated for each day in that Interest Period on the
principal amount of the portion of the Credit Support Balance comprised of cash
in such currency, determined by the Valuation Agent for each such day as
follows:

         (x)      the amount of cash in such currency on that day; multiplied by

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

         (z)      360 (or, in the case of pounds sterling, 365).

"Interest Period" means the period from (and including) the last Local Business
Day on which an Interest Amount was transferred (or, if no Interest Amount has
yet been transferred, the Local Business Day on which Eligible Credit Support or
Equivalent Credit Support in the form of cash was transferred to or received by
the Transferee) to (but excluding) the Local Business Day on which the current
Interest Amount is transferred.

"Interest Rate" means with respect to an Eligible Currency, the rate specified
in Paragraph 11(f)(i) for that currency.

"Local Business Day" , unless otherwise specified in Paragraph 11(h), means:

         (i) in relation to a transfer of cash or other property (other than
         securities) under this Annex, a day on which commercial banks are open
         for business (including dealings in foreign exchange and foreign
         currency deposits) in the place where the relevant account is located
         and, if different, in the principal financial centre, if any, of the
         currency of such payment;

         (ii) in relation to a transfer of securities under this Annex, a day on
         which the clearance system agreed between the parties for delivery of
         the securities is open for the acceptance and execution of settlement
         instructions or, if delivery of the securities is contemplated by other
         means, a day on which commercial banks are open for business (including
         dealings in foreign exchange and foreign currency deposits) in the
         place(s) agreed between the parties for this purpose.

         (iii) in relation to a valuation under this Annex, a day on which
         commercial banks are open for business (including dealings in foreign
         exchange and foreign currency deposits) in the place of location of the
         Valuation Agent and in the place(s) agreed between the parties for this
         purpose; and

         (iv) in relation to any notice or other communication under this Annex,
         a day on which commercial banks are open for business (including
         dealings in foreign exchange and foreign currency deposits) in the
         place specified in the address for notice most recently provided by the
         recipient.

"Minimum Transfer Amount" means, with respect to a party, the amount specified
as such for that party in Paragraph 11(b)(iii)(C); if no amount is specified,
zero.

"New Credit Support" has the meaning specified in Paragraph 3(c)(i).

"Notification Time" has the meaning specified in Paragraph 11(c)(iv).

"Recalculation Date" means the Valuation Date that gives rise to the dispute
under Paragraph 4; provided however, that if a subsequent Valuation Date occurs
under Paragraph 2 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 2.

--------------------------------------------------------------------------------
                                                                          Page 6

<PAGE>

"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).

"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.

PARAGRAPH 11. ELECTIONS AND VARIABLES

(a)      BASE CURRENCY AND ELIGIBLE CURRENCY.

         (i)      "Base Currency" means US$.

         (ii)     "Eligible Currency" means the Base Currency.

         It is agreed by the parties that where the Credit Support Amount is
         transferred in a currency other than the Base Currency, the Valuation
         Percentage specified in Paragraph 11(b)(ii) shall be reduced by a
         percentage agreed by the parties and approved by the relevant rating
         agency ("ADDITIONAL VALUATION PERCENTAGE"), such Additional Valuation
         Percentage being 6% or such lower percentage as agreed by the parties
         and approved by the relevant rating agency. For the purpose of this
         Annex, references to the "relevant rating agency" shall mean the rating
         agency whose Ratings Criteria will be used to determine the amount of
         Eligible Credit Support that Party A is required to transfer to Party B
         following a credit ratings downgrade of Party A.

(b)      CREDIT SUPPORT OBLIGATIONS.

         (i)      DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

--------------------------------------------------------------------------------
                                                                          Page 7
<PAGE>

                  (A)      "DELIVERY AMOUNT": Paragraph 2(a) shall apply, except
                           that the words, "upon a demand made by the
                           Transferee" shall be deleted and the word "that" on
                           the second line of Paragraph 2(a) shall be replaced
                           with the word "a".

                  (B)      "RETURN AMOUNT" has the meaning as specified in
                           Paragraph 2(b).

                  (C)      "CREDIT SUPPORT AMOUNT" has the meaning specified
                           under the relevant definition of Ratings Criteria. In
                           circumstances where more than one of the Ratings
                           Criteria apply to Party A, the Credit Support Amount
                           shall be calculated by reference to the Ratings
                           Criteria which would result in Party A transferring
                           the greatest amount of Eligible Credit Support. Under
                           no circumstances will Party A be required to transfer
                           more Eligible Credit Support than the greatest amount
                           calculated in accordance with the Ratings Criteria
                           set out below.

         (II)     ELIGIBLE CREDIT SUPPORT. The following items will qualify as
                  "Eligible Credit Support" for Party A:

<TABLE>
<CAPTION>
                                                                                        VALUATION
                                                                                        PERCENTAGE
                  <S>      <C>                                                          <C>
                  (A)      cash in an Eligible Currency.                                100%

                  (B)      negotiable debt obligations issued  after 18 July 1984        99%
                           by the U.S. Treasury Department
                           having a residual maturity on such date of less than
                           1 year (with local and foreign currency long term
                           issuer ratings of Moody's Aa2 and S&P AA or above).

                  (C)      negotiable debt obligations issued after 18 July 1984         97%
                           by the U.S. Treasury Department having a residual
                           maturity on such date equal to or greater than 1 year
                           but less than 5 years (with local and foreign
                           currency long term issuer ratings of Moody's Aa2 and
                           S&P AA or above).

                  (D)      negotiable debt obligations issued after 18 July 1984         95%
                           by the U.S. Treasury Department having a residual
                           maturity on such date equal to or greater than 5
                           years but less than 10 years (with local and foreign
                           currency long term issuer ratings of Moody's Aa2 and
                           S&P AA or above).

                  (E)      negotiable debt obligations of the Federal Republic           95%
                           of Germany (with local and foreign currency long term
                           issuer ratings of Moody's Aa2 and S&P AA or above)
                           with a residual maturity of less than 10 years at the
                           date of their transfer to Party B.

                  (F)     negotiable debt obligations of the Republic of France          95%
                          (with local and foreign currency long term issuer
                          ratings of Moody's Aa2 and S&P AA or above) with a
                          residual maturity of less than 10 years at the date of
                          their transfer to Party B.

                  (G)     negotiable debt obligations of Belgium (with local and         95%
                          foreign currency long term issuer ratings of Moody's
                          Aa2 and S&P AA or above) with a residual maturity of
                          less than 10 years at the date of their transfer to
                          Party B.

                  (H)     negotiable debt obligations of the United Kingdom              95%
                          (with local and foreign currency long term issuer
                          ratings of Moody's Aa2 and S&P AA or above) with

--------------------------------------------------------------------------------
                                                                          Page 8
<PAGE>

                          a residual maturity of less than 10 years at the date
                          of their transfer to Party B.

                  (I)     negotiable debt obligations of Italy (with local and          95%
                          foreign currency long term issuer ratings of Moody's
                          Aa2 and S&P AA or above) with a residual Maturity of
                          less than 10 years at the date of their transfer to
                          Party B.

                  (J)     negotiable debt obligations of the Netherlands (with          95%
                          local and foreign currency long term issuer ratings of
                          Moody's Aa2 and S&P AA or above) with a residual
                          maturity of less than 10 years at the date of their
                          transfer to Party B.

                  (K)     negotiable debt obligations of Sweden (with local and         95%
                          foreign currency long term issuer ratings of Moody's
                          Aa2 and S&P AA or above) with a residual maturity of
                          less than 10 years at the date of their transfer to
                          Party B.

                  (L)      negotiable debt obligations of the US Government             97%
                           National Mortgage Association, the US Federal
                           National Mortgage Association, the US Federal
                           Home Loan Mortgage Corporation,
                           the US Student Loans Marketing Association
                           or a US Federal Home Loan Bank (all entities rated
                           Moody's Aa1 (long term) and S&P AA+ (long term) or
                           above) with a residual maturity on such date equal to
                           or greater than 1 year but less than 3 years.

                  (M)      negotiable debt obligations of the US Government             90%
                           National Mortgage Association, the US Federal
                           National Mortgage Association, the US Federal
                           Home Loan Mortgage Corporation,
                           the US Student Loans Marketing Association
                           or a US Federal Home Loan Bank (all entries rated
                           Moody's Aa1 (long term) and S&P AA+ (long term)
                           or above) with a residual maturity on such date equal
                           to or greater than 3 years but less than 5 years.

                  (N)      negotiable debt obligations of the US Government             87%
                           National Mortgage Association, the US Federal
                           National Mortgage Association, the US Federal
                           Home Loan Mortgage Corporation,
                           the US Student Loans Marketing Association
                           or a US Federal Home Loan Bank (all entries rated
                           Moody's Aa1 (long term) and S&P AA+ (long term)
                           or above) with a residual maturity on such date equal
                           to or greater than 5 years but less than 7 years.

                  (O)      negotiable debt obligations of the US Government             83%
                           National Mortgage Association, the US Federal
                           National Mortgage Association, the US Federal
                           Home Loan Mortgage Corporation,
                           the US Student Loans Marketing Association
                           or a US Federal Home Loan Bank (all entries rated
                           Moody's Aa1 (long term) and S&P AA+ (long term) or
                           above) with a residual maturity on such date equal to
                           or greater than 7 years but less than 10 years.
</TABLE>

                  For the avoidance of doubt, 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.

--------------------------------------------------------------------------------
                                                                          Page 9

<PAGE>

                  Where the ratings of the relevant rating agencies differ with
                  respect to the same negotiable debt obligation, the lower of
                  the ratings shall apply.

         (iii)    THRESHOLDS.

                  (A)      "INDEPENDENT AMOUNT" means, for Party A and Party B,
                           with respect to each Transaction, zero.

                  (B)      "THRESHOLD" means, for Party A:

                  1.       infinity, unless: (i) Party A is Downgraded and the
                           downgrade constitutes a Minor Downgrade; AND (ii) it
                           has not otherwise complied with Section 18(c)(ii),
                           (iii) or (iv) of this Agreement, in which case its
                           Threshold shall be zero; or

                  2.       in the event that Party A has complied with Section
                           18(c)(ii), (iii) or (iv) of this Agreement, its
                           Threshold shall continue to be infinity, unless it
                           (or its successor) is Downgraded and the downgrade
                           constitutes a Major Downgrade, in which case its
                           Threshold shall be zero until such time as it has
                           complied with Section 18(c)(ii), (iii) or (iv) of
                           this Agreement.

                           "THRESHOLD" means, for Party B: infinity.

                  (C)      "MINIMUM TRANSFER AMOUNT" means, with respect to
                           Party A and Party B, US$10,000; provided that if: (1)
                           an Event of Default has occurred and is continuing
                           with respect to Party A; or (2) an Additional
                           Termination Event has occurred in respect of which
                           Party A is an Affected Party, the Minimum Transfer
                           Amount with respect to such party shall be zero.

                  (D)      "ROUNDING". The Delivery Amount and the Return Amount
                           will be rounded up and down to the nearest integral
                           multiple of US$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 every day; provided that if such day is
                  not a Local Business Day then the Valuation Date shall be the
                  preceding day that is a Local Business Day.

         (iii)    "VALUATION TIME" means 5.00p.m. New York time 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 at approximately the same
                  time on the same date.

         (iv)     "NOTIFICATION TIME" means by 2:00p.m., London time, on a Local
                  Business Day.

(d)      EXCHANGE DATE. "Exchange Date" has the meaning specified in Paragraph
         3(c)(ii).

(e)      DISPUTE RESOLUTION.

         (i)      "RESOLUTION TIME" means 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, will be
                  calculated as follows:

                  For Eligible Credit Support comprised in a Credit Support
                  Balance that is an amount of cash, the Base Currency
                  Equivalent of such amount.

         (iii)    "ALTERNATIVE". The provisions of Paragraph 4 will apply.

(f)      DISTRIBUTION AND INTEREST AMOUNT.

--------------------------------------------------------------------------------
                                                                         Page 10

<PAGE>

         (i)      INTEREST RATE. The "INTEREST RATE" will be with respect to the
                  Base Currency, the Effective Federal funds rate in US$
                  published on Telerate Page 118 for the relevant day at the
                  close of business in New York on such day, or any successor
                  page and if for any reason Telerate Page 118 should be
                  unavailable the Interest Rate shall be such rate as agreed
                  between the parties reflecting the then prevailing market
                  rate. In the event that the parties agree that Eligible Credit
                  Support may include currencies other than the Base Currency,
                  the "INTEREST RATE" with respect to each such currency shall
                  be such rate as may be agreed between the parties at the time
                  that it is agreed that Eligible Credit Support may include
                  such currency.

         (ii)     "TRANSFER OF INTEREST AMOUNT". The transfer of the Interest
                  Amount will be made on the first Local Business Day following
                  the end of each calendar month to the extent that Party B has
                  earned and received such amount of interest and that a
                  Delivery Amount would not be created or increased by that
                  transfer, and on any other Local Business Day on which
                  Equivalent Credit Support is transferred to the Transferor
                  pursuant to Paragraph 2(b), provided that Party B shall only
                  be obliged to transfer any Interest Amount to Party A to the
                  extent that it has received such amount.

         (iii)    "ALTERNATIVE TO INTEREST AMOUNT". The provisions of Paragraph
                  5(c)(ii) will apply. For the purposes of calculating the
                  Interest Amount the amount of interest calculated for each day
                  of the Interest Period shall, with respect to any Eligible
                  Currency, be compounded daily.

         (iv)     INTEREST AMOUNT" The definition of "INTEREST AMOUNT" shall be
                  deleted and replaced with the following:

                  "INTEREST AMOUNT" means, with respect to an Interest Period
                  and each portion of the Credit Support Balance comprised of
                  cash in an Eligible 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:

<TABLE>
<CAPTION>
        ----------------------------------- -------------------------------- --------------------------------
        GBP Cash                            EUR Cash                         US$ Cash
        --------                            --------                         --------
        <S>                                 <C>                              <C>
        Barclays Bank London                Barclays Bank London             Barclays Bank PLC
        Sort Code 20-00-00                  A/c number 44295577              A/C 050035428
        A/c number: 50654140                A/c name: Barclays Capital       A/c name: Barclays Capital
        A/c name: Barclays Capital          Ref: Collateral                  Ref: Collateral
        Ref: Collateral

        ----------------------------------- -------------------------------- --------------------------------
</TABLE>

         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:

--------------------------------------------------------------------------------
                                                                         Page 11

<PAGE>

                           "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. For
                                    the avoidance of doubt, for the purposes of
                                    Paragraph 2 and Paragraph 4(a)(2), the
                                    Transferor will be deemed to receive notice
                                    of the demand by the Transferee to make a
                                    transfer of Eligible Credit Support; and

                           (ii)     in the case of a transfer pursuant to
                                    Paragraph 3(c)(ii)(A), the date on which the
                                    Transferee has given its consent to the
                                    proposed exchange.

         For the avoidance of doubt, on each Demand Date the Transferor shall
         deliver to the Transferee a statement showing the amount of Eligible
         Credit Support to be delivered.

(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 "Default" in the first line of Paragraph 6, "or a
                  Termination Event in relation to all (but not less than all)
                  Transactions".

(iii)    COSTS OF TRANSFER ON EXCHANGE

                  Notwithstanding Paragraph 8, the Transferor will be
                  responsible for, and will reimburse the Transferee for, all
                  transfer and other taxes and other costs involved in the
                  transfer of Eligible Credit Support either from the Transferor
                  to the Transferee or from the Transferee to the Transferor
                  hereto.

(iv)     CUMULATIVE RIGHTS

                  The rights, powers and remedies of the Transferee under this
                  Annex shall be in addition to all rights, powers and remedies
                  given to the Transferee by this Agreement or by virtue of any
                  statute or rule of law, all of which rights, powers and
                  remedies shall be cumulative and may be exercised successively
                  or concurrently without impairing the rights of the Transferee
                  in the Credit Support Balance created pursuant to this Annex.

(v)      SINGLE TRANSFEROR AND SINGLE TRANSFEREE

                  Party A and Party B agree that, notwithstanding anything to
                  the contrary in this Annex, (including, without limitation,
                  the recital hereto, Paragraph 2 or the definitions in
                  Paragraph 10), (a) the term "Transferee" as used in this Annex
                  means only Party B, (b) the term "Transferor" as used in this
                  Annex means only Party A, (c) only Party A will be required to
                  make Transfers of Eligible Credit Support hereunder; and (d)
                  in the calculation of any Credit Support Amount, where the
                  Transferee's Exposure would be expressed as a negative number,
                  such Exposure shall be deemed to be zero.

--------------------------------------------------------------------------------
                                                                         Page 12

<PAGE>

(vi)     RATINGS CRITERIA

                  "RATINGS CRITERIA" means the criteria used by S&P ("S&P
                  CRITERIA") and the criteria used by Moody's ("MOODY'S
                  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 each Transaction
                  pursuant to Section 18 of this Agreement.

                  MOODY'S CRITERIA

                  "CREDIT SUPPORT AMOUNT" shall mean:

                  (A)      the Transferee's Exposure multiplied by "A"; and

                  (B)      the product of "B" and the sum of the Party A
                           Floating Rate Payer Currency Amount(s) (as defined in
                           the Confirmation for each outstanding Transaction
                           under this Agreement), where:

                           (i)      "A" means 3% and "B" means 4.6% if the
                                    short-term, unsecured and unsubordinated
                                    debt obligations of Party A (or its
                                    successor) and, if relevant, any Credit
                                    Support Provider of Party A cease to be
                                    rated as high as "Prime-1" and "A2" by
                                    Moody's; and

                           (ii)     "A" means 0% and "B" means 0% in all other
                                    cases.

                  S&P CRITERIA

                  "CREDIT SUPPORT AMOUNT" shall mean, with respect to a
                  Transferor on a Valuation Date, the greater of:

                  (A)      (i)      MTM + VB = CR;

                           (ii)     MTM + (VB x 0.1) = BRCR; or

                           (iii)    CR x CM1 x CM2 = CCR,

                           where applicable; and

                  (B)      0.

                  If the Transaction under this Agreement is an Interest Rate
                  Swap, Basis Swap or Currency Swap (as defined in the
                  Confirmation (including by incorporation by reference) for
                  each outstanding Transaction under this Agreement), then
                  (A)(i), (ii) or (iii) will apply respectively.

                  Where:
                  -----

                  "MTM" means Transferee's Exposure;

                  "VB" means the Party A Floating Rate Payer Currency Amount (as
                  defined in the Confirmation for each outstanding Transaction
                  under this Agreement) times the relevant percentage set out in
                  Table A below;

                  "CM1" and "CM2" mean the multiplication factors set out in
                  Table B below. The currency of each leg of the Transaction
                  will determine which factor to use for each of CM1 and CM2.

--------------------------------------------------------------------------------
                                                                         Page 13

<PAGE>

                                TABLE A

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                                      VOLATILITY BUFFER
----------------------------------------------------------------------------------------------
<S>               <C>              <C>                 <C>               <C>
Counterparty      The Group 1,     Remaining Term      Remaining Term    Remaining Term (as
                  Group 2 or       (as defined in      (as defined in    defined in the 2000
                  Group 3 is       the 2000 ISDA       the 2000 ISDA     ISDA Definitions)
                  dependent on     Definitions) of     Definitions) of   of Transaction more
                  the currency     Transaction up to   Transaction up    than 10 years
                  of the           5 years             to 10 years,
                  Transaction.                         but  greater
                                                       than 5 years
----------------- ---------------- ------------------- ----------------- ---------------------
The rating by     Group 1          0.6%                1.05%             1.5%
S&P of Party
A's long-term     ---------------- ------------------- ----------------- ---------------------
unsecured,        Group 2          1.05%               1.75%             3.0%
unsubordinated
obligations is    ---------------- ------------------- ----------------- ---------------------
at least equal    Group 3          1.5%                2.45%             4.5%
to "A+"
----------------- ---------------- ------------------- ----------------- ---------------------
The rating by     Group 1          0.9%                1.10%             1.9%
S&P of Party
A's long-term     ---------------- ------------------- ----------------- ---------------------
unsecured,        Group 2          1.35%               2.45%             4.5%
unsubordinated
obligations is    ---------------- ------------------- ----------------- ---------------------
equal to "A"      Group 3          1.8%                3.15%             6.0%
----------------- ---------------- ------------------- ----------------- ---------------------
The rating by     Group 1          1.2%                2.25%             4.5%
S&P of Party
A's long-term     ---------------- ------------------- ----------------- ---------------------
unsecured,        Group 2          1.5%                3.15%             6.0%
unsubordinated
obligations is    ---------------- ------------------- ----------------- ---------------------
less than "A"     Group 3          2.1%                3.85%             7.5%
----------------------------------------------------------------------------------------------

Group 1 currencies  are:  Belgian  francs,  Deutschemarks,  Dutch  guilders,  Euro,  European
Currency Units, French franca, Japanese yen, Swiss francs and U.S. dollars.
----------------------------------------------------------------------------------------------

Group 2 currencies  are:  Australian  dollars,  British pounds  sterling,  Canadian  dollars,
Danish kroner, New Zealand dollars and Swedish kroner.
----------------------------------------------------------------------------------------------

Group 3 currencies are: Hong Kong dollars, Italian lire and Spanish pesetas.
----------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------
                                                                         Page 14

<PAGE>

                                     TABLE B

--------------------------------------------------------------------------------
                    MULTIPLICATION FACTORS FOR CURRENCY SWAPS
--------------------------------------------------------------------------------
U.S. dollars                                                              1.000
-------------------------------------------------- -----------------------------
Canadian dollars                                                          1.020
-------------------------------------------------- -----------------------------
New Zealand dollars                                                       1.020
-------------------------------------------------- -----------------------------
Australian dollars                                                        1.030
-------------------------------------------------- -----------------------------
Hong Kong dollars                                                         1.030
-------------------------------------------------- -----------------------------
Belgian dollars                                                           1.040
-------------------------------------------------- -----------------------------
British pounds sterling                                                   1.040
-------------------------------------------------- -----------------------------
Danish kroner                                                             1.040
-------------------------------------------------- -----------------------------
Dutch gilders                                                             1.040
-------------------------------------------------- -----------------------------
European Currency Units                                                   1.040
-------------------------------------------------- -----------------------------
Euro                                                                      1.040
-------------------------------------------------- -----------------------------
French francs                                                             1.040
-------------------------------------------------- -----------------------------
German marks                                                              1.040
-------------------------------------------------- -----------------------------
Japanese yen                                                              1.040
-------------------------------------------------- -----------------------------
Italian lire                                                              1.045
-------------------------------------------------- -----------------------------
Spanish pesetas                                                           1.045
-------------------------------------------------- -----------------------------
Swedish kroner                                                            1.045
-------------------------------------------------- -----------------------------
Swiss francs                                                              1.045
-------------------------------------------------- -----------------------------

(vii)    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 request" after the word "calculations" in
         the third line thereof.

(viii)   DEMANDS AND NOTICES.

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

(ix)     EXPOSURE.

         "EXPOSURE" means, with respect to a party on a Valuation Date and
         subject to Paragraph 4 of this Annex 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, being US$, is the Termination
         Currency; provided that Market Quotations will be determined by the
         Valuation Agent on behalf of that party using the arithmetic mean of
         three actual quotes at mid-market of the amounts that would be paid for
         Replacement Transactions (as that term is defined in the definition of
         "Market Quotation"). If three quotations are not available, then fewer
         than three quotations may be used, and if no quotations are available
         for a particular Transaction, then the Valuation Agent's calculations
         as agreed with the Designated Rating Agencies under commercially
         reasonable terms and assumptions will be used for the Transaction.

--------------------------------------------------------------------------------
                                                                         Page 15<PAGE>

                                                                    EXHIBIT 10.1

                                ENCORE PORTFOLIO

                      CONTRIBUTION AND ASSIGNMENT AGREEMENT

         THIS CONTRIBUTION AND ASSIGNMENT AGREEMENT (this "Agreement") is made
and entered into as of the 17th day of February, 2004, by and among MHC-ENCORE
HOLDINGS, L.P. (together with its affiliates, designees and assigns, the
"Partnership"), a Delaware limited partnership having an address of c/o
Manufactured Home Communities, Inc., Two North Riverside Plaza, Suite 800,
Chicago, Illinois 60606, EMB/NHC, L.L.C. ("Contributor"), a Delaware limited
liability company having an address of c/o National Home Communities, L.L.C.,
6991 East Camelback Road, Suite B-310, Scottsdale, Arizona 85251, and the "New
GP Entities" (as hereinafter defined), each having an address of c/o National
Home Communities, L.L.C., 6991 East Camelback Road, Suite B-310, Scottsdale,
Arizona 85251.

                                R E C I T A L S:

         A.       EMB/NHC-NewGP-LEMB, Inc., a Delaware corporation ("New
GP-LEMB") owns the sole general partner interest, and Contributor owns the sole
limited partner interest, of LEMB, L.P., a Delaware limited partnership ("LEMB
LP"), which indirectly, through one or more entities, owns an interest (I) in
the properties known as (i) "Encore Port Charlotte," located in Port Charlotte,
Florida, on the real property more particularly described on Exhibit A-1
attached hereto and containing all of the property described in Section 1(C)
herein ("Port Charlotte Property"), (ii) "Encore Harlingen," located in
Harlingen, Texas on the real property more particularly described on Exhibit A-2
attached hereto and containing all of the property described in Section 1(C)
herein ("Encore Harlingen Property"), and (iii) "Sunburst Harlingen," located in
Harlingen, Texas, on the real property more particularly described on Exhibit
A-3 attached hereto and containing all of the property described in Section 1(C)
herein ("Sunburst Harlingen Property"), (iv) "Sunburst Port Richey," located in
Port Richey, Florida, on the real property more particularly described on
Exhibit A-4 attached hereto and containing all of the property described in
Section 1(C) herein ("Port Richey Property"), (v) "Encore Vero Beach," located
in Vero Beach, Florida, on the real property more particularly described on
Exhibit A-5 attached hereto and containing all of the property described in
Section 1(C) herein ("Vero Beach Property"), (vi) "Encore Daytona Beach,"
located in Daytona Beach, Florida, on the real property more particularly
described on Exhibit A-6 attached hereto and containing all of the property
described in Section 1(C) herein ("Daytona Beach Property"), and (II) a ground
lease interest in the property known as "Tahoe Valley Campground," located in
Lake Tahoe, California, on the real property more particularly described on
Exhibit A-7 attached hereto and containing all of the property described in
Section 1(C) herein ("Tahoe Property"). In addition, LEMB LP owns all of the
outstanding equity interests of Encore Communities, L.L.C., a Delaware limited
liability company.

         B.       EMB/NHC-NewGP-LEMB II, Inc., a Delaware corporation ("New
GP-LEMB II"), owns the sole general partner interest, and Contributor owns the
sole limited partner interest, of LEMB II, L.P., a Delaware limited partnership
("LEMB II LP"), which (I) owns a

<PAGE>

ground lease interest in the properties known as (i) "Southern Comfort," located
in Weslaco, Texas, on the real property more particularly described on Exhibit
A-8 attached hereto and containing all of the property described in Section 1(C)
herein ("Southern Comfort Property"), (ii) "Sunburst Weslaco," located in
Weslaco, Texas on the real property more particularly described on Exhibit A-9
attached hereto and containing all of the property described in Section 1(C)
herein ("Weslaco Property"), (iii) "Encore Mercedes," located in Mercedes,
Texas, on the real property more particularly described on Exhibit A-10 attached
hereto and containing all of the property described in Section 1(C) herein
("Mercedes Property"), and (II) indirectly, through one or more entities, owns
an interest the Port Charlotte Property, the Encore Harlingen Property, the
Sunburst Harlingen Property, the Port Richey Property, the Vero Beach Property,
the Daytona Beach Property, and the Tahoe Property.

         C.       EMB/NHC-NewGP-LEMB III, Inc., a Delaware corporation ("New
GP-LEMB III"), owns the sole general partner interest, and Contributor owns the
sole limited partner interest, of LEMB III, L.P., a Delaware limited partnership
("LEMB III LP"), which owns the properties known as (i) "Paradise Park," located
in Paradise Park, Texas, on the real property more particularly described on
Exhibit A-11 attached hereto and containing all of the property described in
Section 1(C) herein ("Paradise Park Property"), (ii) "Sunburst St. Petersburg,"
located in St. Petersburg, Florida on the real property more particularly
described on Exhibit A-12 attached hereto and containing all of the property
described in Section 1(C) herein ("St. Petersburg Property"), and (iii) "Encore
Sarasota South," located in Sarasota South, Florida, on the real property more
particularly described on Exhibit A-13 attached hereto and containing all of the
property described in Section 1(C) herein ("Sarasota South Property").

         D.       EMB/NHC-NewGP-CA3, Inc., a Delaware corporation ("New
GP-CA3"), owns the sole general partner interest, and Contributor owns the sole
limited partner interest, of NHC-CA3, L.P., a Delaware limited partnership
("NHC-CA3 LP"), which owns the property known as "Pacific Dunes Ranch," located
in California Central Coast, California, on the real property more particularly
described on Exhibit A-14 attached hereto and containing all of the property
described in Section 1(C) herein ("Pacific Dunes Property").

         E.       EMB/NHC-NewGP-CA4, Inc., a Delaware corporation ("New
GP-CA4"), owns the sole general partner interest, and Contributor owns the sole
limited partner interest, of NHC-CA4, L.P., a Delaware limited partnership
("NHC-CA4 LP"), which indirectly, through one or more entities, owns an interest
in the Port Charlotte Property, the Encore Harlingen Property, the Sunburst
Harlingen Property, the Port Richey Property, the Vero Beach Property, the
Daytona Beach Property, and the Tahoe Property.

         F.       On or about January 8, 2004, Contributor provided the
requisite notice ("Notice") under each of the partnership agreements of the
Property Owners (the "Partnership Agreements") to exercise the buy/sell
provisions contained in Section 5.4 of the Partnership Agreements (the "Buy/Sell
Provisions").

         G.       Property Asset Management, Inc. and/or its affiliates as
general and limited partners of the Property Owners (collectively, "PAMI")
failed to respond to the Notice in a manner sufficient to qualify as the "Buyer"
within the meaning of the Buy/Sell Provisions.

2

<PAGE>

         H.       Contributor has represented to the Partnership that PAMI has
breached its obligations under the Partnership Agreements and has repudiated the
terms of the Partnership Agreements, including without limitation, the Buy/Sell
Provisions.

         I.       Immediately prior to this Agreement, the Partnership loaned to
Contributor an amount necessary to enable Contributor to acquire all of the
partnership or membership interests in each of the Property Owners owned by PAMI
(collectively, the "PAMI Interests") and to pay PAMI in full for the PAMI
Interests within the meaning of the Buy/Sell Provisions, which loan ("Loan") is
evidenced by a promissory note payable to the Partnership (the "Note").

         J.       Following the acquisition of the PAMI Interests, Contributor
directly or indirectly owns all of the issued and outstanding limited
partnership or membership interests in the Property Owners (the "LP Interests"),
and pursuant to the terms of the Buy/Sell Provisions, Contributor designated New
GP to own the general partner or managing member interests of each of the
Property Owners (the "GP Interests" and together with the LP Interests, the
"Interests").

         K.       The Partnership has relied upon the foregoing events and upon
Contributor's representations that Contributor qualifies as the "Buyer" within
the meaning of the Buy/Sell Provisions in causing the Partnership to make the
Loan and in entering into this Agreement.

         L.       LEMB LP, LEMB II LP, LEMB III LP, NHC-CA3 LP, and NHC-CA4 LP
are sometimes referred to hereinafter individually as a "Property Owner" and
collectively as the "Property Owners." New GP-LEMB, New GP-LEMB II, New GP-LEMB
III, New GP-CA3, and New GP-CA4 are sometimes referred to hereinafter
individually as a "New GP Entity" and collectively as the "New GP Entities."

         M.       The Port Charlotte Property, the Encore Harlingen Property,
the Sunburst Harlingen Property, the Port Richey Property, the Vero Beach
Property, the Daytona Beach Property, the Tahoe Beach Property, the Southern
Comfort Property, the Weslaco Property, the Mercedes Property, the Paradise Park
Property, the St. Petersburg Property, the Sarasota South Property, and the
Pacific Dunes Property are sometimes referred to hereinafter individually as an
"Individual Property" and collectively as the "Properties."

         N.       Contributor desires to contribute to the Partnership, and the
Partnership desires to accept such contribution from Contributor, all of the LP
Interests owned by Contributor, upon and subject to the terms and conditions of
this Agreement. Each of the New GP Entities desires, and Contributor shall cause
New GP, to assign to the Partnership, and the Partnership desires to accept such
assignment from Contributor, all of the GP Interests owned by the New GP
Entities, upon and subject to the terms and conditions of this Agreement

         THEREFORE, in consideration of and in reliance upon the above Recitals,
which by this reference are incorporated herein, the terms, covenants,
conditions and representations contained in this Agreement, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Contributor, each of the New GP Entities and the Partnership agree
as follows:

3

<PAGE>

1.       CONTRIBUTION AND ASSIGNMENT

         A.       Subject to the terms and conditions of this Agreement,
Contributor hereby agrees to contribute to the Partnership, at the Closing (as
such term is hereinafter defined), all of its right, title and interest in and
to all of the LP Interests held by Contributor free and clear of all liens,
claims, liabilities and encumbrances. The Partnership shall not assume any
obligations or liabilities of the Contributor relating the ownership of the LP
Interests arising prior to the date hereof. The Partnership, in reliance upon
the representations and warranties of Contributor contained herein and on the
terms and conditions herein set forth, hereby agrees to accept the contribution
of the LP Interests from Contributor at the Closing on the terms and conditions
set forth herein. Notwithstanding anything to the contrary, in the event that it
is later determined that Contributor did not acquire the PAMI Interests pursuant
to the Buy/Sell Provisions or otherwise, no contribution of the LP Interests
shall be deemed to have been made by Contributor and Contributor shall not be
deemed to have become a Limited Partner of the Partnership at any time.

         B.       Subject to the terms and conditions of this Agreement, each
New GP Entity hereby agrees, and Contributor shall cause each New GP Entity, to
assign to the Partnership or, at the direction of the Partnership, its
designated affiliate, at the Closing (as such term is hereinafter defined), all
of its right, title and interest in and to all of the GP Interests held by such
New GP Entity free and clear of all liens, claims, liabilities and encumbrances.
Neither the Partnership nor any designee of the Partnership shall assume any
obligations or liabilities of the Contributor or any New GP Entity relating the
ownership of the GP Interests arising prior to the date hereof. The Partnership
or its designated affiliate, in reliance upon the representations and warranties
of Contributor contained herein and on the terms and conditions herein set
forth, hereby agrees to accept the contribution of the GP Interests from such
New GP Entity at the Closing on the terms and conditions set forth herein.
Notwithstanding anything to the contrary, in the event that it is later
determined that Contributor did not acquire the PAMI Interests pursuant to the
Buy/Sell Provisions or otherwise, no contribution of the GP Interests shall be
deemed to have been made by Contributor.

         C.       The Port Charlotte Property, the Encore Harlingen Property,
the Sunburst Harlingen Property, the Port Richey Property, the Vero Beach
Property, the Daytona Beach Property, the Tahoe Beach Property, the Southern
Comfort Property, the Weslaco Property, the Mercedes Property, the Paradise Park
Property, the St. Petersburg Property, the Sarasota South Property, and the
Pacific Dunes Property shall mean and include all of the respective Property
Owner's direct or indirect right, title and interest in and to the following
described property with respect to each Individual Property:

                  (i)      the real estate owned (or ground leased, as
         applicable) by such Property Owner described on Exhibits A-1 through
         A-14 attached to this Agreement, respectively (as applicable with
         respect to each Individual Property); together with all and singular
         the easements, covenants, agreements, rights, privileges, tenements,
         hereditaments and appurtenances thereunto now or hereafter belonging or
         appertaining (the "Individual Tract of Land");

4

<PAGE>

                  (ii)     any land lying in the bed of any street, alley, road
         or avenue (whether open, closed or proposed) within, in front of,
         behind or otherwise adjoining the Individual Tract of Land or any of
         it, any award made or to be made as a result of or in lieu of
         condemnation affecting the Individual Property or any part thereof, and
         any award for damage to the Individual Property or any part thereof by
         reason of casualty (all of the foregoing being included within the term
         "Individual Tract of Land");

                  (iii)    all of the buildings, structures, fixtures,
         facilities, installations and other improvements of every kind and
         description now or hereafter in, on, over and under the Individual
         Tract of Land, including, without limitation, any and all recreational
         buildings, structures and facilities, plumbing, heating, ventilating,
         air conditioning, mechanical, electrical and other utility systems,
         water and sewage treatment plants and facilities (including wells and
         septic systems), parking lots and facilities, landscaping, roadways,
         sidewalks, swimming pools, security devices, signs and light fixtures,
         which are not owned by tenants under the Individual Property Leases (as
         such term is hereinafter defined) (collectively, the "Individual
         Improvements") (the Individual Tract of Land and the Individual
         Improvements being herein collectively referred to as the "Individual
         Premises");

                  (iv)     all manufactured homes, recreational vehicles and
         park model homes, furniture, furnishings, fixtures, equipment,
         machinery, maintenance vehicles and equipment, tools, parts,
         recreational equipment, carpeting, window treatments, office supplies
         and equipment, and other tangible personal property of every kind and
         description situated in, on, over or under the Individual Premises or
         used in connection therewith which are not owned by tenants under the
         Individual Property Leases, together with all replacements and
         substitutions therefor (together with the items described in Section
         1(C)(v) below and the Individual Intangible Personal Property described
         in Section 1(C)(vi) below, collectively, the "Individual Personal
         Property"), a substantially complete and accurate itemization of which
         may be submitted to the Partnership pursuant to Section 5(A)(iii)
         below;

                  (v)      all existing surveys, blueprints, drawings, plans and
         specifications (including, without limitation, structural, HVAC,
         mechanical and plumbing, water and sewer plans and specifications),
         construction drawings, soil tests, environmental reports, appraisals,
         police reports, and other documentation for or with respect to the
         Individual Property or any part thereof; all available tenant lists and
         data, correspondence with past, present and prospective tenants,
         vendors, suppliers, utility companies and other third parties,
         stationery, brochures, booklets, manuals and promotional, marketing and
         advertising materials concerning the Individual Property or any part
         thereof; any declarations, by-laws, minute books and other materials
         relating to any homeowners' association or similar organization
         affecting the Individual Property, together with all supporting
         documentation relating thereto; and such other existing books, records
         and documents (including, without limitation, those relating to ad
         valorem taxes and the Individual Property Leases) used in connection
         with the operation of the Individual Property or any part thereof;

5

<PAGE>

                  (vi)     the Individual Property Leases and the Individual
         Property Service Contracts (as such term is hereinafter defined), and
         all other intangible personal property used in connection with or
         arising from the business now or hereafter conducted on or from the
         Individual Property or any part thereof, including, without limitation,
         claims, choses in action, lease and other contract rights, names and
         telephone exchange numbers, reservation and contact lists, software,
         web sites, goodwill, going-concern value, favorable ratings and
         recommendations in national, regional and local trade publications and
         the like (collectively, the "Individual Intangible Personal Property").
         A summary of all current leases and other occupancy agreements
         affecting the Individual Premises or any part thereof (collectively,
         the "Individual Property Leases," with such summary being hereinafter
         referred to as the "Individual Property Rent Roll"), including each
         tenant's name, a description of the space leased, the amount of rent
         due and the amount of any security deposit paid, the term of each
         Individual Property Lease, and a description of any right to renew or
         extend, may be submitted to the Partnership pursuant to Section 5(A)(i)
         below. A list of all employment, union, purchase, service and
         maintenance agreements, equipment leases and any other agreements,
         contracts, licenses and permits, including, without limitation, cable
         television and satellite master antenna television system agreements,
         affecting or pertaining in any way to the Individual Property or any
         part thereof (collectively, the "Individual Property Service
         Contracts") may be submitted to the Partnership pursuant to Section
         5(A)(ii) below; and

                  (vii)    all cash, cash equivalents and inventory, including
         monies held on account by lenders (the "Cash").

2.       CONSIDERATION

         The total consideration to be given by the Partnership to Contributor
in exchange for (i) Contributor's contribution of the LP Interests to the
Partnership and (ii) each New GP Entity's assignment of the GP Interests to the
Partnership shall be the issuance by the Partnership to Contributor of a 13.66%
limited partnership interest in the Partnership (the "Master LP Interest") and
the extinguishment of the Note (the "Consideration").

3.       CLOSING

         A.       CLOSING DATE. The closing ("Closing") of the transaction
contemplated by this Agreement (i.e., the contribution and assignment of the
Interests, and the satisfaction of all other terms and conditions of this
Agreement) shall be consummated at the office of the Partnership on or before
February 17, 2004 (the "Closing Date"); provided, however, that the Closing Date
may be accelerated or delayed upon the parties' mutual written agreement.

         B.       CLOSING DOCUMENTS.

                  (i) Contributor. At the Closing, Contributor shall deliver to
         the Partnership the following items (the "Transaction Documents") (each
         in form and substance reasonably acceptable to the Partnership, if not
         attached to this Agreement as an Exhibit and executed [if necessary] by
         Contributor):

6

<PAGE>

                           (a)      an assignment and assumption agreement
                  substantially in the form attached hereto as Exhibit B,
                  pursuant to which (i) Contributor transfers its LP Interests
                  to the Partnership and (ii) the Partnership assumes all
                  obligations of Contributor in the applicable Property Owner in
                  accordance with the terms of the partnership agreement of such
                  Property Owner;

                           (b)      a counterpart signature page to the Limited
                  Partnership Agreement of the Partnership (the "Master LP
                  Agreement");

                           (c)      the originally executed Note for
                  cancellation by the Partnership;

                           (d)      evidence of the termination of the
                  applicable property management or other management agreement
                  with respect to each Individual Property and any manufactured
                  home, recreational vehicle or park model home sale brokerage
                  agreements;

                           (e)      all other necessary or appropriate documents
                  as are necessary for Contributor to comply with its
                  obligations under this Agreement, or as reasonably required by
                  the Partnership in order to perfect the conveyance, transfer
                  and assignment of the LP Interests and GP Interests to the
                  Partnership or the Partnership's designee.

                  (ii)     New GP Entities. At the Closing, each New GP Entity
         shall deliver to the Partnership an assignment and assumption agreement
         substantially in the form attached hereto as Exhibit B, pursuant to
         which (i) such New GP Entity transfers its GP Interests to the
         Partnership or its designee and (ii) the Partnership or its designee
         assumes all obligations of Contributor in the applicable Property Owner
         in accordance with the terms of the partnership agreement of such
         Property Owner.

                  (iii)    Partnership. The Partnership shall deliver or cause
         to be delivered to Contributor at the Closing:

                           (a)      a copy of the Master LP Agreement indicating
                  the issuance of the Master LP Interest to Contributor,
                  together with a counterpart signature page to the Master LP
                  Agreement; and

                           (b)      the Note, property marked cancelled.

         C.       POST-CLOSING DOCUMENTS. After the Closing, Contributor shall,
at the request of the Partnership, deliver to the Partnership the following
items:

                           (a)      a rent roll for the Individual Property
                  certified by the general partner of the Property Owner as
                  being true, complete and correct, in each case with respect to
                  the Individual Property directly or indirectly owned by the
                  applicable Property Owner;

7

<PAGE>

                           (b)      all of the books and records of each
                  Property Owner or Individual Property;

                           (c)      all of the original Individual Property
                  Leases, all written Individual Property Service Contracts, and
                  any and all building plans, surveys, site plans, engineering
                  plans and studies, utility plans, landscaping plans,
                  development plans, blueprints, specifications and drawings,
                  construction drawings, soil tests, environmental reports and
                  other documentation concerning all or any part of the
                  Individual Property and in the possession or control of
                  Contributor, and all keys for the Individual Property;

                           (d)      to the extent that a Property Owner does not
                  own any Inventory Homes located at the applicable Individual
                  Property, an appropriate assignment and/or bill of sale,
                  together with certificates of title or manufacturer's
                  statements of origin, for any such Inventory Homes, executed
                  by the applicable person or entity which owns such Inventory
                  Homes;

                           (e)      Contributor's affidavit stating, under
                  penalty of perjury, such Contributor's U.S. Taxpayer
                  Identification Number and that Contributor is not a "foreign
                  person" within the meaning of Section 1445 of the Internal
                  Revenue Code (the "Code");

                           (f)      transfer tax returns as required by
                  applicable law (including, without limitation, a Florida
                  Department of Revenue Form DR-219 with respect to each
                  Individual Property located in Florida);

                           (g)      an affidavit or other statement, in form and
                  substance acceptable to the Partnership, which satisfies the
                  requirements of any applicable statute of the state in which
                  the Individual Property is located (if any) which is
                  substantially similar to the requirements of Florida Statutes,
                  Section 723.072.

4.       REPRESENTATIONS AND WARRANTIES OF CONTRIBUTOR

         A.       Contributor, with respect to the Property Owner in which
Contributor owns LP Interests, represents and warrants to the Partnership that
the following are true, complete and correct as of the date of this Agreement:

                  (i)      Except for the that certain action filed against
         Contributor in the Court of Chancery of the State of Delaware on
         February 13, 2004, there is no material action, proceeding or
         investigation pending or, to Contributor's knowledge, threatened
         against Contributor, the Property Owner or the Individual Property
         before any court or governmental department, commission, board, agency
         or instrumentality, and Contributor does not know of any basis for any
         such action, proceeding or investigation.

                  (ii)     Contributor has not received from any governmental
         authority any notice of any material violation of any zoning, building,
         fire or health code or any other law,

8

<PAGE>

         ordinance, rule or regulation applicable to the Individual Property, or
         any part thereof, of which the Partnership has not been notified.

                  (iii)    Contributor is duly organized, validly existing,
         qualified and empowered to conduct its business, and has full power and
         authority to enter into and fully perform and comply with the terms of
         this Agreement. Neither the execution and delivery of this Agreement
         nor its performance will conflict with or result in the breach of any
         contract, agreement, law, ordinance, rule or regulation to which
         Contributor is a party or by which Contributor is bound, or give rise
         to a right, not waived on or before the Closing, to accelerate the
         maturity of an obligation secured by the applicable existing financing
         which encumbers any of the Individual Properties.

                  (iv)     To Contributor's knowledge, without independent
         inquiry or investigation, there is no plan, study or effort by any
         governmental authority or agency which in any way affects or would
         affect the present use or zoning of the Individual Property, and there
         is no existing, proposed or contemplated plan to widen, modify or
         realign any street or highway or any existing, proposed or contemplated
         eminent domain proceedings that would affect the Individual Property in
         any way whatsoever.

                  (v)      Each of the Property Owners has good and marketable
         fee simple title to its respective Individual Properties (except for
         the Southern Comfort Property, the Weslaco Property, the Mercedes
         Property and the Tahoe Property (collectively, the "Ground Lease
         Properties") with respect to which the respective Property Owner owns
         good and marketable title subject to the applicable ground leases and
         (B) the Port Charlotte Property, the Encore Harlingen Property, the
         Sunburst Harlingen Property, the Port Richey Property, the Vero Beach
         Property and the Daytona Beach Property with respect to which the
         respective Property Owner owns an indirect interest)), free and clear
         of all liens, claims and encumbrances, except as may exist in favor of
         the lenders with respect to those certain respective loan agreements,
         notes and mortgages or deeds of trust (the "Existing Loan Documents")
         evidencing various mortgage and/or mezzanine loans in the outstanding
         principal amounts listed on Exhibit C (the "Existing Loans").
         Contributor has in its possession an ALTA Form B (1970) Owner's Title
         Insurance Policy (or ground lessee's policy for the Ground Lease
         Properties) issued in the name of the applicable Property Owner with
         respect to each of the Individual Properties. At the Partnership's
         request, Contributor shall cause such title policies to contain a
         non-imputation endorsement with respect to the applicable Property
         Owner, and in the event that said non-imputation endorsement is not
         available in the state in which an Individual Property is located,
         Contributor shall deliver on behalf of the applicable Property Owner a
         Non-Imputation Affidavit in the form attached hereto as Exhibit D
         ("Non-Imputation Affidavit"). None of the Property Owners will own any
         direct or indirect interest in any entity which is taxable as a
         corporation under the Internal Revenue Code of 1986, as amended (the
         "Code") as of March 30, 2004.

                  (vi)     Copies of all existing Individual Property Leases
         have been previously delivered to the Partnership, and such copies are
         true, complete and correct. Each of the Individual Property Leases is
         in effect, was the result of arm's-length negotiation, and the

9

<PAGE>

         rights of each lessee thereunder are as tenants only. No commissions to
         any broker or leasing agent are due or will become due on account of
         any of the Individual Property Leases or upon extension or renewal of
         the original term thereof or upon the leasing of additional space at
         the Individual Property, whether or not pursuant to an option contained
         in such Individual Property Lease.

                  (vii)    With respect to the Individual Property or any part
         thereof, there are no unpaid taxes, fees or assessments of any kind or
         nature whatsoever that are delinquent or otherwise due and payable. All
         fees and expenses required to be paid in connection with the
         development and zoning of the Individual Property have been paid in
         full and there are no agreements with governmental or
         quasi-governmental authorities, agencies or utilities with respect to
         the Individual Property or any portion thereof which would bind the
         Individual Property following the Closing.

                  (viii)   All financial information about the Individual
         Property heretofore or hereafter furnished by Contributor to the
         Partnership (including, without limitation, the operating statements to
         be provided to the Partnership pursuant to Section 5(A)(v) below) is
         and shall be true, complete and correct in all material respects as of
         the date therein specified and shall present fairly the financial
         condition of the Individual Property and, with respect to projections,
         shall be based upon the best information available to Contributor at
         the time when first delivered to the Partnership.

                  (ix)     The transactions contemplated by this Agreement are
         the result of an unsolicited offer within the meaning of Section
         723.071, Florida Statutes.

                  (x)      To Contributor's knowledge, and without independent
         inquiry or investigation, there are no Hazardous Materials (as such
         term is hereinafter defined) on, in or under the Individual Property,
         and the Individual Property has never been used to generate, treat,
         store, dispose of, transport or in any manner deal with Hazardous
         Materials. For purposes of this Agreement, the term Hazardous Materials
         shall include hazardous substances as defined by the Comprehensive
         Environmental Response, Compensation and Liability Act of 1980, as
         amended (42 U.S.C. Section 9601, et seq.), petroleum and petroleum
         products and any other hazardous or toxic materials, substances or
         wastes regulated under any federal, state or local laws or regulations
         relating to protection of heath, safety or the environment. There is
         excepted from the foregoing any Hazardous Materials used, kept, stored
         or transported upon the Individual Property in accordance with
         requirements of law and in the ordinary course of the applicable
         Property Owner's operation of its business upon the Individual
         Property.

                  (xi)     Except as disclosed in writing to the Partnership by
         Contributor, the ground leases for the Ground Lease Properties are in
         full force and effect and there are no defaults thereunder or
         conditions which the giving of notice would rise to an event of default
         and the transaction contemplated by this Agreement will not cause a
         default under any of the ground leases for the Ground Lease Properties.
         Contributor has delivered to the Partnership full, complete and
         accurate copies of the ground leases for the Ground Lease Properties.

10

<PAGE>

                  (xii)    Except as disclosed in writing to the Partnership by
         Contributor, the Existing Loan Documents are in full force and effect
         and there are no defaults thereunder or conditions which the giving of
         notice would rise to an event of default thereunder. Contributor has
         delivered to the Partnership full, complete and accurate copies of the
         Existing Loan Documents.

                  (xiii)   Exhibits E-1 through E-16, respectively (as
         applicable), set forth (a) the issued and outstanding partnership or
         membership interests of each Property Owner, (b) the capital
         contributions made by Contributor to each Property Owner, and (c) the
         capital account balances of Contributor in each Property Owner.

                  (xiv)    Contributor has previously delivered to the
         Partnership the following financial statements of each Property Owner
         (the "Financial Statements"): (a) the unaudited balance sheet of such
         Property Owner as of December 31 for each of the years 2002 and 2003,
         and the related unaudited statements of income and cash flows for each
         of such fiscal years then ended (the most recent of which, the "Balance
         Sheet"), and (b) an unaudited balance sheet of such Property Owner as
         of __________, 2004 (the "Interim Balance Sheet") and the related
         unaudited statements of income and cash flows for the three months then
         ended, including, in each case, any notes thereto. Each of the
         Financial Statements is consistent with the books and records of such
         Property Owner (which, in turn, are accurate and complete in all
         material respects) and fairly presents such Property Owner's financial
         condition, assets and liabilities as of its respective date and the
         results of operations and cash flows for the period related thereto.
         The Financial Statements utilize the accrual method of accounting
         consistent with the method utilized to prepare the relevant tax return
         of each Property Owner. The Interim Balance Sheet utilizes the cash
         method of accounting.

                  (xv)     Contributor is, and on the Closing Date will be, the
         sole record and beneficial owner and holder of the LP Interests, and
         have good and marketable title to the LP Interests, free and clear of
         all liens, claims and encumbrances. Each New GP Entity is, and on the
         Closing Date will be, the sole record and beneficial owner and holder
         of its respective GP Interests, and has good and marketable title to
         its respective GP Interests, free and clear of all liens, claims and
         encumbrances, except as may exist in favor of the lenders with respect
         to the Existing Loan Documents. Upon consummation of the transactions
         contemplated hereby, the Partnership, together with its designees, will
         be vested with good and marketable title to all of the outstanding
         equity securities of the Property Owners free and clear of all liens,
         claims and encumbrances, except as may exist in favor of the lenders
         with respect to the Existing Loan Documents. There are no contracts or
         other agreements relating to the issuance, sale or transfer of any
         equity securities, phantom stock or appreciation rights, profit
         participation, or other securities (whether or not convertible) of the
         Property Owner, including options, warrants, puts or calls, all of
         which will have been canceled, terminated or expired at no expense to
         the Property Owner on or before the Closing. No Property Owner (other
         than LEMB LP, LEMB II LP and NHC-CA4 LP) has owned, owns, or has a
         contract to acquire, any equity securities or other securities of any
         entity or any direct or indirect equity or

11

<PAGE>

         ownership interest in any other business. There are currently existing
         no preemptive rights with respect to any Interests nor have any
         Interests been issued in violation of then existing preemptive rights.
         Each Property Owner shall have the election provided for in Section 754
         of the Code in place when Contributor acquires the sole limited partner
         interest of the Property Owner and when each New GP Entity acquires the
         sole general partner interest of the applicable Property Owner.

                  (xvi)    Each Property Owner has no material liabilities or
         obligations of any nature (whether known or unknown and whether
         absolute, accrued, contingent or otherwise) other than (a) liabilities
         or obligations specifically reflected or reserved against in the
         Financial Statements, (b) current liabilities incurred in the ordinary
         course of business since the date of the Balance Sheet and (c)
         obligations under executory contracts that are to be performed in the
         ordinary course of business and are apparent from the plain reading of
         such contracts. None of the matters described in clauses (a) through
         (c) hereof is a liability resulting from a breach of contract, breach
         of warranty, tort, infringement or claim or proceeding.

                  (xvii)   No representation or warranty of Contributor in this
         Agreement or any of the Schedules or Exhibits attached hereto omits to
         state a material fact necessary to make the statements herein or
         therein, in light of the circumstances in which they were made, not
         misleading.

                  (xviii)  No Property Owner currently has any employees.

                  (xix)    Each Property Owner has duly filed all federal,
         state, county and municipal income, excise and other tax returns
         required to be filed by it as of the date of this Agreement.

                  (xx)     All federal, state, county and municipal taxes and
         assessments and other governmental or quasi-governmental levies of any
         kind relating to each Property Owner that have become due for payment
         prior to the date of this Agreement have been paid or shall be paid in
         full by the Property Owner together with any interest and penalties
         thereon prior to the Closing.

                  (xxi)    Subject to the truth and accuracy of the
         representations of investors, if any, obtained by Contributor or
         Property Owner, each offer, sale and issuance of equity interests by
         Contributor or such Property Owner was or is exempt from the
         registration requirements of the Securities Act of 1933, as amended,
         and all applicable state securities laws, and Contributor and Property
         Owner has complied with, and is currently in compliance with, in all
         material respects, all applicable federal and state securities laws.

                  (xxii)   The statements set forth in the Recitals are true and
         correct.

                  (xxiii)  (A) The aggregate amount of all Cash held by all
         Property Owners and all Cash held the "Property Owners" (as defined in
         the Contribution and Assignment Agreement dated as of the date hereof
         by and among Contributor, MHC-Encore

12

<PAGE>

         Holdings, L.L.C., and the other parties party thereto)(the "Other
         Property Owners") is not less than $5,500,000 and (B) the aggregate
         amount of the non-mortgage debt liabilities, mezzanine debt liabilities
         and ground rent obligations of, or relating to, the Properties held,
         directly or indirectly, by the Property Owners and the Other Property
         Owners does not exceed $9,800,000.

         B.       The foregoing representations and warranties of Contributor
shall survive the execution and delivery of this Agreement, the Closing and the
delivery of all documents and the performance of any and all covenants and
obligations in accordance with this Agreement for a period of one (1) year from
the Closing Date. Contributor shall protect, defend, indemnify and hold harmless
the Partnership, its affiliates, subsidiaries and designees, if any, and their
respective principals, shareholders, directors, officers, partners, members,
agents, employees, successors and assigns (collectively, the "Indemnified
Parties") from and against any and all claims, demands, losses, damages,
liabilities, fines, penalties, charges, administrative and judicial proceedings
and orders, judgments, remedial action requirements, enforcement actions of any
kind, and all costs and expenses incurred in connection therewith (including,
without limitation, reasonable attorneys' fees and expenses) resulting from or
arising out of (i) any breach of the representations and warranties set forth in
Section 4(A) above or in any Non-Imputation Affidavit, (ii) any
misrepresentation by Contributor or non-fulfillment of any covenant to be
performed or complied with by Contributor under this Agreement, or (iii) any
claim, action or proceeding of any kind whatsoever, whether instituted or
commenced prior to or after the Closing, which relates to or arises from the
conduct of Contributor's or Property Owner's business or assets on or prior to
the Closing.

         C.       Contributor shall protect, defend, indemnify and hold harmless
the Indemnified Parties from and against any and all claims, demands, losses,
expenses, damages, liabilities, fines, penalties, charges, administrative and
judicial proceedings and orders, judgments, remedial action requirements,
enforcement actions of any kind, and all costs and expenses incurred in
connection therewith (including, without limitation, reasonable attorneys' fees
and expenses) pursuant to any federal, state or local laws or regulations
relating to protection of health, safety or the environment ("Environmental
Laws") resulting from the following, if resulting from the acts of Contributor
or the Property Owners, their contractors, subcontractors, agents or employees:
(i) the use, generation, transportation, storage, disposal or presence, other
than in the Property Owners' ordinary course of their business upon the
Individual Properties and in compliance with law, prior to the Closing, on the
Individual Properties of any Hazardous Materials or the release or discharge of
any Hazardous Materials on, under or from the Individual Properties, (ii) any
failure, prior to the Closing, to comply with any Environmental Laws, (iii) the
treatment, storage or disposal off the Individual Properties, prior to the
Closing, of any Hazardous Materials, or (iv) any breach of the representations
and warranties set forth in Section 4(A)(ix) above. This indemnity shall survive
the Closing for a period of one (1) year from the Closing Date.

         D.       Contributor shall provide to the Partnership and its auditors
(i) prior to and following the Closing, access at all reasonable times to all
financial and other information in Contributor's possession relating to the
Properties necessary for the Partnership and its auditors

13

<PAGE>

to prepare audited financial statements in conformity with Regulations S-X of
the Securities and Exchange Commission ("SEC") or other materials required for
any registration statement, report or other disclosure to be filed with the SEC
or necessary to comply with any SEC rule or regulation, and (ii) at the Closing
(or prior thereto if required by the Partnership's auditors) an executed
representations letter, as required by Generally Accepted Auditing Standards as
promulgated by the Auditing Standards Division of the American Institute of
Public Accountants, which representation is required to enable an independent
public accountant to render an opinion on such financial statements; provided,
however, that MHC Operating Limited Partnership shall pay for any actual costs
incurred by Contributor in connection with their obligations under this Section
4(D). The obligation of Contributor to provide such access and representations
letter shall survive Closing and Contributor shall indemnify and hold the
Indemnified Parties harmless from and against any losses, costs, expenses
(including, without limitation, reasonable attorneys' fees and expenses) and
liabilities arising from the failure of Contributor to comply with these
obligations.

4A.      REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

         A.       The Partnership represents and warrants to Contributor that
the following are true, complete and correct as of the date of this Agreement:

                  (i)      The Partnership is duly organized, validly existing,
         qualified and empowered to conduct its business, and has full power and
         authority to enter into and fully perform and comply with the terms of
         this Agreement. Neither the execution and delivery of this Agreement
         nor its performance will conflict with or result in the breach of any
         contract, agreement, law, ordinance, rule or regulation to which the
         Partnership is a party or by which the Partnership is bound.

                  (ii)     The Partnership or its affiliate initiated the
         negotiations regarding its acquisition of the Interests, and
         Contributor did not solicit the Partnership's offer to acquire the
         Interests.

         B.       The foregoing representations and warranties of the
Partnership shall survive the execution and delivery of this Agreement, the
Closing and the delivery of all documents and the performance of any and all
covenants and obligations in accordance with this Agreement for a period of one
(1) year from the Closing Date.

5.       SCHEDULES, CONSENTS AND APPROVALS

         A.       At the request of the Partnership, Contributor shall furnish
to the Partnership any of the following:

                  (i)      the Individual Property Rent Rolls provided for in
         Section 1(C)(v) above, and make available to the Partnership true,
         correct and complete copies of all the Individual Property Leases;

                  (ii)     the lists of all Individual Property Service
         Contracts provided for in Section 1(C)(vi) above, together with a true,
         correct and complete copy of each written

14

<PAGE>

         Individual Service Contract and a true, correct and complete summary of
         each oral Individual Property Service Contract;

                  (iii)    the itemizations of the tangible Individual Personal
         Property as provided for in Section 1(C)(iv) above;

                  (iv)     a schedule of all insurance policies owned by or on
         behalf of each Property Owner with respect to each Individual Property
         or any part thereof;

                  (v)      copies of all operating statements for each
         Individual Property which are in the possession or control of
         Contributor for any time during the period commencing with the first
         day of the second full calendar year preceding the date of this
         Agreement and ending on the date of this Agreement;

                  (vi)     copies of the most recent surveys of and title
         policies or commitments for each Individual Premises in the possession
         or control of Contributor;

                  (vii)    copies of all environmental reports, termite
         inspection reports, soil tests, appraisals and police reports (within a
         three (3) year period prior to the date of this Agreement) for each
         Individual Property in the possession or control of Contributor; and

                  (viii)   copies of any and all tax returns to be filed by the
         Property Owners for the period ended as of the date of this Agreement
         and copies of any elections under Section 754 of the Code made or
         proposed to be made by any Property Owner.

6.       PARTNERSHIP'S CONDITIONS PRECEDENT

         At the option of the Partnership, the obligations of the Partnership
under this Agreement are contingent and conditional upon any one (1) or more of
the following, the failure of any of which shall, at the election of the
Partnership, render this Agreement null and void:

         A.       Each and every representation and warranty of Contributor
contained herein is true, correct and complete in all material respects as of
the Closing.

         B.       As of the Closing, Contributor shall have fully performed and
satisfied in all material respects each and every obligation, term and condition
to be performed and satisfied by Contributor under this Agreement.

         C.       As of the Closing, Contributor shall have fully performed and
satisfied in all material respects each and every obligation, term and condition
to be performed and satisfied by Contributor under the Contribution and
Assignment Agreement of even date herewith among the parties with respect to the
contribution of partnership interests to MHC-Encore Holdings, L.L.C.

         D.       The prospectus for each Individual Property located in Florida
as required by Section 723.011, Florida Statutes, shall have been approved by
the Florida Department of Business and Professional Regulation (Division of
Florida Land Sales, Condominiums and Mobile Homes) (the "Department") as
evidenced by a letter from the Department. Contributor

15

<PAGE>

shall, and shall cause the Property Owners to, promptly and timely meet all
requirements to correct any deficiencies of any such prospectus so that the
approval of the Department to said prospectus is not delayed or withheld, but no
submission shall be made by the Contributor or Property Owners in connection
with said prospectus without the prior written consent of the Partnership.

         E.       The applicable Property Owners shall have fully complied with
the provisions and requirements of Section 723.071, Florida Statutes with
respect to each Individual Property located in Florida. To the extent any
Property Owner delivers a notice to the tenants' homeowners' association at its
Individual Property located in Florida as required by Section 723.071, Florida
Statutes, the Partnership shall not be deemed to have consented or agreed to any
allocation of the Consideration set forth in such notice. With respect to each
Individual Property located in Florida, the applicable Property Owners shall
prepare, execute and deliver to the Partnership the affidavit provided for in
Section 723.072, Florida Statutes, in form suitable for recording.

         If any of the foregoing conditions are not satisfied with respect to
any Individual Property, the Partnership shall have the right to terminate this
Agreement with respect to such Individual Property.

7.       BROKERAGE

         No brokerage commissions shall be due for services rendered in
connection with the contribution and assignment of the Interests. Contributor
and the Partnership shall indemnify and hold each other harmless from and
against any and all claims of all brokers and finders claiming by, through or
under Contributor or the Partnership, as applicable, and in any way related to
the contribution and assignment of the Interests, pursuant to this Agreement or
otherwise, including, without limitation, reasonable attorneys fees incurred by
the indemnified party in connection with such claims.

8.       DEFAULT AND REMEDIES

         A.       Notwithstanding anything to the contrary contained in this
Agreement, if Contributor or any New GP Entity fails to perform in accordance
with the terms of this Agreement and such failure has not been cured within ten
(10) days after the delivery of written notice to Contributor and such New GP
Entity, then at the Partnership's option, the Partnership may terminate this
Agreement and this Agreement shall be null and void and no party shall have any
further rights or obligations under this Agreement, or the Partnership may sue
for specific performance of this Agreement.

         B.       Notwithstanding anything to the contrary contained in this
Agreement, if the Partnership fails to perform in accordance with the terms of
this Agreement and such failure has not been cured within ten (10) days after
the delivery of written notice to the Partnership, then Contributor may
terminate this Agreement and this Agreement shall be null and void and no party
shall have any further rights or obligations under this Agreement.

16

<PAGE>

9.       MISCELLANEOUS

         A.       This Agreement shall not be canceled or merged upon
consummation of the Closing.

         B.       Prior to the Closing, no party shall release to the public any
information with respect to the transactions contemplated herein unless required
to do so by applicable law.

         C.       Neither this Agreement nor any interest hereunder shall be
assigned or transferred by Contributor or any New GP Entity. The Partnership may
assign or otherwise transfer all or any portion of its interest under this
Agreement, including, without limitation, assignments of the right to purchase
any manufactured homes or recreational vehicles to Realty Systems, Inc., or any
other affiliate of the Partnership; provided however that no such assignment
shall release the Partnership from any liability hereunder. As used in this
Agreement, the term "Partnership" shall be deemed to include any assignee or
other transferee of the Partnership. Subject to the foregoing, this Agreement
shall inure to the benefit of and shall be binding upon Contributor and the
Partnership and their respective successors and assigns.

         D.       This Agreement constitutes the entire agreement between
Contributor, the New GP Entities and the Partnership with respect to the
contribution and assignment of the Interests and shall not be modified or
amended except in a written document signed by Contributor, the New GP Entities
and the Partnership. Any prior agreement or understanding between Contributor,
the New GP Entities and the Partnership concerning the contribution and
assignment of the Interests is hereby rendered null and void. All Exhibits
attached to this Agreement are hereby incorporated herein and made a part of
this Agreement.

         E.       This Agreement constitutes an offer by the Partnership which
must be accepted by Contributor and the New GP Entities within one (1) business
day after the date execution copies of this Agreement are submitted by the
Partnership to Contributor and the New GP Entities for execution. If this
Agreement is not so accepted and returned to the Partnership within said one (1)
business day period, this offer shall be deemed revoked.

         F.       Time is of the essence of this Agreement. In the computation
of any period of time provided for in this Agreement or by law, the day of the
act or event from which the period of time runs shall be excluded, and the last
day of such period shall be included, unless it is a Saturday, Sunday or legal
holiday, in which case the period shall be deemed to run until the end of the
next day which is not a Saturday, Sunday or legal holiday.

         G.       All questions regarding the construction, validity and
interpretation of this Agreement shall be governed and interpreted in accordance
with the laws of the State of Illinois.

17

<PAGE>

         H.       All notices, requests, demands or other communications
required or permitted under this Agreement shall be in writing and delivered
personally (including delivery by overnight courier such as Airborne Express) or
by facsimile, addressed as follows:

                  (i)      If to Contributor:

                           EMB/NHC, L.L.C.
                           6991 East Camelback Road
                           Suite B310
                           Scottsdale, Arizona 85251
                           Telephone: (480) 423-5700
                           Telecopy:  (480) 423-5777
                           Attention: David A. Napp

                           with a copy to:

                           Gallagher & Kennedy, P.A.
                           2575 East Camelback Road
                           Phoenix, Arizona 85016
                           Telephone:  (602) 530-8524
                           Telecopy:   (602) 530-8500
                           Attention:  James B. Connor

                  (ii)     If to the Partnership:

                           MHC-ENCORE HOLDINGS, L.P.
                           c/o Manufactured Home Communities, Inc.
                           Two North Riverside Plaza, Suite 800
                           Chicago, Illinois  60606
                           Telephone: (312) 279-1400
                           Telecopy:  (312) 279-1710
                           Attention: President

                           With a copy to:

                           Manufactured Home Communities, Inc.
                           Two North Riverside Plaza, Suite 800
                           Chicago, Illinois  60606
                           Telephone: (312) 279-1400
                           Telecopy:  (312) 279-1715
                           Attention: General Counsel

18

<PAGE>

                           and to:

                           Katten Muchin Zavis Rosenman
                           525 West Monroe Street
                           Suite 1600
                           Chicago, Illinois  60661
                           Telephone: (312) 902-5532
                           Telecopy:  (312) 577-8668
                           Attention: Daniel J. Perlman

All notices given in accordance with the terms hereof shall be deemed received
when delivered personally or, if sent by facsimile, as of the date of
transmission provided an original of such facsimile is also sent by personal
delivery. Any party hereto may change its address for receiving notices,
requests, demands or other communications by notice sent in accordance with the
terms of this Section 9(H).

         I.       At the Closing, Contributor shall deliver to the Partnership
its affidavit stating, under penalty of perjury, Contributor's U.S. taxpayer
identification number and that Contributor is not a foreign person within the
meaning of Section 1445 of the Code. The purpose of this affidavit is to assure
the Partnership that the withholding of taxes by the Partnership is not required
by said Section 1445 upon Contributor's disposition of the Interests, and such
certification shall be in form prescribed by said Section 1445 or regulations
promulgated pursuant thereto.

         J.       This Agreement may be executed in any number of identical
counterparts, any or all of which may contain the signatures of fewer than all
of the parties but all of which shall be taken together as a single instrument.

         K.       Notwithstanding anything herein to the contrary, except as
reasonably necessary to comply with applicable securities laws, each party (and
each employee, representative or other agent of each party) hereto may disclose
to any and all persons, without limitation of any kind, any information with
respect to the United States federal income "tax treatment" and "tax structure"
(in each case, within the meaning of Treasury Regulations Section 1.6011-4) of
the transactions contemplated hereby and all materials of any kind (including
opinions or other tax analyses) that are provided to such parties (or their
representatives) relating to such tax treatment and tax structure; provided that
with respect to any document or similar item that in either case contains
information concerning the tax treatment or tax structure of the transaction as
well as other information, this sentence shall only apply to such portions of
the document or similar item that relate to the United States federal income tax
treatment or tax structure of the transactions contemplated hereby.

                            [Signature Page Follows]

19

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first set forth above.

WITNESSES:                            PARTNERSHIP:

_______________________________       MHC-ENCORE HOLDINGS, L.P.,
Name:__________________________       a Delaware limited partnership

_______________________________
Name:__________________________       By:  MHC-ENCORE MASTER PARTNERSHIP GP,
                                           L.L.C., a Delaware limited liability
                                           company

                                      By:  MHC OPERATING LIMITED PARTNERSHIP,
                                           an Illinois limited partnership, its
                                           sole Member

                                      By:   MANUFACTURED HOME COMMUNITIES, INC.,
                                            a Maryland corporation, as its
                                            General Partner

                                            By:_________________________________
                                               Name:____________________________
                                               Title:___________________________

WITNESSES:
                                      CONTRIBUTOR:

_______________________________       EMB/NHC, LLC, a Delaware limited liability
Name:__________________________       company

_______________________________
Name:__________________________       By: ______________________________________
                                          David A. Napp
                                          Manager

                       [SIGNATURES CONTINUE ON NEXT PAGE]
<PAGE>

                                       NEW GP ENTITIES:

WITNESSES:

______________________________         EMB/NHC-NEWGP-LEMB, INC., a Delaware
Name:_________________________         corporation
______________________________
Name:_________________________         By: _____________________________________
                                           David A. Napp, Authorized Signatory

WITNESSES:                             EMB/NHC-NEWGP-LEMB II, INC., a Delaware
______________________________         corporation
Name:_________________________
______________________________         By: _____________________________________
Name:_________________________             David A. Napp, Authorized Signatory

WITNESSES:                             EMB/NHC-NEWGP-LEMB III, INC., a Delaware
______________________________         corporation
Name:_________________________
______________________________         By: _____________________________________
Name:________________________              David A. Napp, Authorized Signatory

WITNESSES:                             EMB/NHC-NEWGP-CA3, INC., a Delaware
______________________________         corporation
Name:_________________________
______________________________         By: _____________________________________
Name:_________________________             David A. Napp, Authorized Signatory

WITNESSES:                             EMB/NHC-NEWGP-CA4, INC., a Delaware
______________________________         corporation
Name:_________________________
______________________________         By: _____________________________________
Name:_________________________             David A. Napp, Authorized Signatory

<PAGE>

                              SCHEDULE OF EXHIBITS

EXHIBITS A-1 through A-14           Legal Descriptions of Land.

EXHIBIT B                           Form of Assignment and Assumption Agreement.

EXHIBIT C                           Schedule of Existing Loans

EXHIBIT D                           Form of Non-Imputation Affidavit.

EXHIBIT E-1 through E-14            Description of Interests.

<PAGE>

                                   EXHIBIT "A"

                            LEGAL DESCRIPTION OF LAND

                               [A-1 THROUGH A-14]

<PAGE>

                                   EXHIBIT "B"

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

         THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is made as
of _______ __, 2004 by __________________ ("Assignor"), a limited partner of
______________, L.P., a ___________ limited partnership (the "Partnership"), in
favor of ____________________________________ , a ____________________________
("Assignee"). This Assignment is being entered into pursuant to that certain
Contribution and Assignment Agreement (the "Agreement") dated as of February
____, 2004, by and among Assignee, Assignor and ______________.

         A.       Assignor hereby assigns, sets over, transfers, grants and
conveys unto Assignee all of Assignor's right, title and interest in and to the
Partnership, including, without limitation, Assignor's interest as a limited
partner of the Partnership (collectively, the "Interest"), free and clear of all
liens, claims and encumbrances.

         B.       Assignee hereby accepts such assignment of the Interest from
Assignor and assumes all of the liabilities of Assignor with respect to the
Interest arising on and after the date hereof and agrees to perform all of the
duties and obligations to be performed by Assignor under the Agreement of
Limited Partnership of the Partnership, dated as of ________________, as the
same may be amended from time to time (with Assignor remaining responsible for
all such liabilities, duties and obligations accruing or arising prior to the
date hereof).

         C.       The foregoing assignments, setting over, transfers, grants and
conveyances are made without representation or warranty of any kind or nature
whatsoever, except as may otherwise be expressly set forth in the Agreement. The
parties agree to take any further actions and execute and deliver any additional
documents which may be necessary or appropriate to evidence and/or effect the
transfer and assignment of the Interest from Assignor to Assignee.

         IN WITNESS WHEREOF, the undersigned have caused this Assignment to be
executed as of the date first above written.

                                       ASSIGNOR:

                                       _______________________________________

                                             By: _____________________________

                                             Name: ___________________________

                                             Its: ____________________________

                                       ASSIGNEE:

                                       _______________________________________

                                             By: _____________________________

<PAGE>

                                             Name:____________________________

                                             Its: ____________________________

<PAGE>

                                   EXHIBIT "C"

                           SCHEDULE OF EXISTING LOANS

<PAGE>

                                   EXHIBIT "D"

                        FORM OF NON-IMPUTATION AFFIDAVIT

State of__________________ )
                           )ss
County of__________________)

The undersigned, after being first duly sworn, states as follows:

1.       The undersigned are all of the members of ___________________ , a
___________________ ("Partnership") which owns the properties described in
Exhibit A attached hereto ("Properties").

2.       To the best of the knowledge of the undersigned, there exists no
unrecorded deed, land contract, lease, option to purchase, mortgage, deed of
trust, judgment lien, tax lien, agreement or other instrument or encumbrance
affecting title to any of the Properties, other than as described in Title
Insurance Commitment Number _________________ issued by ________________ on
________________ (the "Title Commitment").

3.       Neither the Partnership nor any of its members have done anything to
create any deed, land contract, lease, option to purchase, mortgage, deed of
trust, judgment lien, tax lien, agreement or other instrument or encumbrance
affecting title to any of the Properties, other than as disclosed in the Title
Commitment.

4.       There exists no litigation nor threatened litigation against the
Partnership which purports to affect the Properties.

5.       An independent examination of the business records of the Partnership
would reveal that the records would not disclose or suggest the existence of any
unrecorded legal or equitable interests in the Properties.

6.       The undersigned make this affidavit for the purpose of inducing MHC
Operating Limited Partnership, an Illinois limited partnership ("MHC") to close
the transactions contemplated by that certain Contribution and Assignment
Agreement dated as of February ____, 2004 between MHC, as purchaser, and
________________, LLC, a Delaware limited liability company, and the Contributor
(as defined therein), as amended from time to time, with the knowledge that MHC
and its affiliate _________________ , L.L.C., a Delaware limited liability
company (the "Membership Interest Purchaser") to which the partnership interests
are being contributed or assigned will rely on the assurances and
representations made herein.

                  [Remainder of page intentionally left blank]

<PAGE>

Each of the undersigned certify under penalty of perjury that the foregoing is
true and correct.

                                             By: _____________________________
                                             Name: ___________________________
                                             Title: __________________________

<PAGE>

                          EXHIBIT "E-1" THROUGH "E-14"

                         DESCRIPTION OF EQUITY INTERESTS

                                 [SEE ATTACHED]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]