Document:

Ex. 4.6.3

                       Terms and conditions of the notes

         The following are the terms and conditions (the "Conditions", and any
reference to a "Condition" shall be construed accordingly) of the Notes in the
form (subject to amendment) which will be incorporated by reference into each
Global Note Certificate and each Individual Note Certificate, in the latter
case only if permitted by the relevant stock exchange or other relevant
authority (if any) and agreed by the Issuer and the relevant Dealer(s) at the
time of issue but, if not so permitted and agreed, such individual Note
Certificate will have endorsed thereon or attached thereto such Conditions.
The Final Terms in relation to each Series and Class of Notes may specify
other terms and conditions which shall, to the extent so specified or to the
extent inconsistent with these Conditions, replace or modify these Conditions
for the purpose of such Notes. The applicable Final Terms (or the relevant
provisions thereof) will be endorsed upon, or attached to, each Global Note
Certificate and Individual Note Certificate.

         The Notes are constituted by a deed or deeds supplemental to the
Issuer Trust Deed. The security for the Notes is created pursuant to, and on
the terms set out in, the Issuer Deed of Charge. By the Issuer Paying Agent
and Agent Bank Agreement, provision is made for, inter alia, the payment of
principal and interest in respect of the Notes.

         References herein to the "Notes" shall, unless the context otherwise
requires, be references to all the Notes issued by the Issuer and constituted
by the Issuer Trust Deed and shall mean:

         (i)      in relation to any Notes of a Series and Class represented
                  by a Global Note Certificate, units of the lowest Specified
                  Denomination in the Specified Currency in each case of such
                  Series and Class;

         (ii)     any Global Note Certificates; and

         (iii)    any Individual Note Certificates issued in exchange for a
                  Global Note Certificate.

         Notes constituted by the Issuer Trust Deed are issued in series (each
a "Series") and each Series comprises one or more classes of Notes. Each
Series of Notes is subject to Final Terms. The Final Terms in relation to each
Series and Class of Notes (or the relevant provisions thereof) will be
endorsed upon, or attached to, such Notes and will supplement these Conditions
in respect of such Notes and may specify other terms and conditions which
shall, to the extent so specified or to the extent inconsistent with these
Conditions, replace or modify these Conditions for the purpose of such Notes.
References to the "applicable Final Terms" are, in relation to a Series and
Class of Notes, to the Final Terms (or the relevant provisions thereof)
attached to or endorsed on such Notes.

         The statements in these Conditions include summaries of, and are
subject to, the detailed provisions of the Issuer Trust Deed, the Issuer Deed
of Charge and the Issuer Paying Agent and Agent Bank Agreement.

         Copies of the Issuer Trust Deed, the Issuer Deed of Charge, the
Issuer Paying Agent and Agent Bank Agreement and each of the other Transaction
Documents are available for inspection during normal business hours at the
registered office of the issuer, being Fifth Floor, 100 Wood Street, London
EC2V 7EX and the specified office for the time being of (i) the Principal
Paying Agent, being at 19 January, 2005, 5 Carmelite Street, London EC4Y OPA
and (ii) the US Paying Agent, being at 19 January, 2005, 14th Floor, 388
Greenwich Street, New York, New York 10013. Copies of the Final Terms of each
Series of Notes are obtainable during normal business hours at the registered
office of the issuer and the specified office for the time being of (i) the
Principal Paying Agent and (ii) the US Paying Agent and any Noteholder must
produce evidence satisfactory to the relevant Paying Agent as to its holding
of Notes and identity.

         The Holders of any Series and Class of Notes are entitled to the
benefit of, are bound by, and are deemed to have notice of all the provisions
of, and definitions contained or incorporated in, the Issuer Trust Deed, the
Issuer Deed of Charge, the Issuer Paying Agent and Agent Bank Agreement, each
of the other Transaction Documents and

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the applicable Final Terms and to have notice of each other Final Terms
relating to each other Series and Class of Notes.

         A glossary of definitions appears in Condition 18 of these
Conditions.

         References herein to the Class A Noteholders, the Class B
Noteholders, the Class M Noteholders, the Class C Noteholders and the Class D
Noteholders shall, in each case and unless specified otherwise, be references
to the Holders of the Notes of all Series of the applicable Class.

1.       Form, Denomination, Register, Title and Transfers

(A)      Form and Denomination

         The US Notes will initially be offered and sold pursuant to a
registration statement filed with the United States Securities and Exchange
Commission. The Reg S Notes will initially be offered and sold outside the
United States to non-US persons pursuant to Reg S.

         Each Series and Class of Notes will be issued in the Specified
Currency and in the Specified Denomination. Each Series and Class of US Notes
will be initially represented by a US Global Note Certificate, which, in the
aggregate, will represent the Principal Amount Outstanding from time to time
of such Series and Class of US Notes. Each Series and Class of Reg S Notes
will be initially represented by a Reg S Global Note Certificate which, in the
aggregate, will represent the Principal Amount Outstanding from time to time
of such Series and Class of the Reg S Notes.

         Each Series and Class of Notes may be Fixed Rate Notes, Floating Rate
Notes, Zero Coupon Notes, Index Linked Interest Notes, Dual Currency Interest
Notes or a combination of any of the foregoing, depending upon the Interest
Basis shown in the applicable Final Terms.

         Each Series and Class of Notes may be Index Linked Redemption Notes,
Dual Currency Redemption Notes, Bullet Redemption Notes, Scheduled Redemption
Notes, Controlled Amortisation Notes, Pass-Through Notes or a combination of
any of the foregoing, depending upon the Redemption/Payment Basis shown in the
applicable Final Terms.

         Global Note Certificates will be exchanged for Individual Note
Certificates in definitive registered form only under certain limited
circumstances (as described in the relevant Global Note Certificate). If
Individual Note Certificates are issued, they will be serially numbered and
issued in an aggregate principal amount equal to the Principal Amount
Outstanding of the relevant Global Note Certificates and in registered form
only.

         In the case of a Series and Class of Notes with more than one
Specified Denomination, Notes of one Specified Denomination may not be
exchanged for Notes of such Series and Class of another Specified
Denomination.

(B)      Register

         The Registrar will maintain the Register in respect of the Notes in
accordance with the provisions of the Issuer Paying Agent and Agent Bank
Agreement. In these Conditions, the "Holder" of a Note means the person in
whose name such Note is for the time being registered in the Register (or, in
the case of a joint holding, the first named thereof). A Note Certificate will
be issued to each Noteholder in respect of its registered holding. Each Note
Certificate will be numbered serially with an identifying number which will be
recorded in the Register.

(C)      Title

         The Holder of each Note shall (except as otherwise required by law)
be treated by the Issuer, the Note Trustee, the Agent Bank and any Agent as
the absolute owner of such Note for all purposes (whether or not it is overdue
and regardless of any notice of ownership, trust or any other interest
therein, any writing on the Note Certificate relating

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thereto (other than the endorsed form of transfer) or any notice of any
previous loss or theft of such Note Certificate) and no person shall be liable
for so treating such Holder.

(D)      Transfers

         Subject as provided otherwise in this Condition 1(D), a Note may be
transferred upon surrender of the relevant Note Certificate, with the endorsed
form of transfer duly completed, at the Specified Office of the Registrar or
the Transfer Agent, together with such evidence as the Registrar or (as the
case may be) such Transfer Agent may reasonably require to prove the title of
the transferor and the authority of the individuals who have executed the form
of transfer; provided, however, that a Note may not be transferred unless the
principal amount of Notes transferred and (where not all of the Notes held by
a Holder are being transferred) the principal amount of the balance of Notes
not transferred are Authorised Holdings. Where not all the Notes represented
by the surrendered Note Certificate are the subject of the transfer, a new
Note Certificate in respect of the balance of the Notes will be issued to the
transferor.

         Within five Commercial Business Days of such surrender of a Note
Certificate, the Registrar will register the transfer in question and deliver
a new Note Certificate of a like principal amount to the Notes transferred to
each relevant Holder at its Specified Office or (as the case may be) the
Specified Office of the Transfer Agent or (at the request and risk of any such
relevant Holder) by uninsured first class mail (and by airmail if the Holder
is overseas) to the address specified for such purpose by such relevant
Holder. In this paragraph, "Commercial Business Day" means a day on which
commercial banks are open for business in the city where the Registrar or (as
the case may be) Transfer Agent has its Specified Office.

         The transfer of a Note will be effected without charge by or on
behalf of the Issuer, the Registrar or the Transfer Agent but against such
indemnity as the Registrar or (as the case may be) such Transfer Agent may
require in respect of any tax or other duty of whatsoever nature which may be
levied or imposed in connection with such transfer.

         Noteholders may not require transfers of Notes to be registered
during the period of 15 days ending on the due date for any payment of
principal or interest in respect of the Notes.

         All transfers of Notes and entries on the Register are subject to the
detailed regulations concerning the transfer of Notes scheduled to the Issuer
Paying Agent and Agent Bank Agreement. The regulations may be changed by the
Issuer with the prior written approval of the Note Trustee and the Registrar.
A copy of the current regulations will be mailed (free of charge) by the
Registrar to any Noteholder who requests in writing a copy of such
regulations.

2.       Status, Priority and Security

(A)       Status

         The Notes of each Series and Class are direct, secured and
unconditional obligations of the Issuer and will at all times rank pari passu
and pro rata without preference or priority amongst themselves.

         Subject to the provisions of Conditions 4 and 5 and subject to the
other payment conditions set out in the applicable Final Terms and the other
Transaction Documents:

         (i)      the Class A Notes of each Series will rank pari passu and
                  pro rata without any preference or priority among the Class
                  A Notes of each Series but in priority to the Class B Notes,
                  the Class M Notes, the Class C Notes and the Class D Notes
                  of any Series;

         (ii)     the Class B Notes of each Series will rank pari passu and
                  pro rata without any preference or priority among the Class
                  B Notes of each Series but in priority to the Class M Notes,
                  the Class C Notes and the Class D Notes of any Series;

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        (iii)     the Class M Notes of each Series will rank pari passu and
                  pro rata without any preference or priority among the Class
                  M Notes of each Series but in priority to the Class C Notes
                  and the Class D Notes of any Series;

         (iv)     the Class C Notes of each Series will rank pari passu and
                  pro rata without any preference or priority among the Class
                  C Notes of each Series but in priority to the Class D Notes
                  of any Series; and

         (v)      the Class D Notes of each Series will rank pari passu and
                  pro rata without any preference or priority among the Class
                  D Notes of each series.

(B)      Conflict between the classes of Notes

         The Issuer Trust Deed contains provisions requiring the Note Trustee
to have regard to the interests of the Class A Noteholders, the Class B
Noteholders, the Class M Noteholders, the Class C Noteholders and the Class D
Noteholders equally as regards all powers, trusts, authorities, duties and
discretions of the Note Trustee under these Conditions or any of the Issuer
Transaction Documents (except where expressly provided otherwise), but
requiring the Note Trustee to have regard (except as expressly provided
otherwise):

         (i)      for so long as there are any Class A Notes outstanding (of
                  any Series), only to the interests of the Class A
                  Noteholders if, in the opinion of the Note Trustee, there is
                  or may be a conflict between the interests of the Class A
                  Noteholders and the interests of the Class B Noteholders
                  and/or the interests of the Class M Noteholders and/or the
                  interests of the Class C Noteholders and/or the interests of
                  the Class D Noteholders (of that Series or of any other
                  Series);

         (ii)     subject to (i) above and for so long as there are any Class
                  B Notes outstanding (of any Series), only to the interests
                  of the Class B Noteholders if, in the opinion of the Note
                  Trustee there is or may be a conflict between the interests
                  of the Class B Noteholders and the interest of the Class M
                  Noteholders and/or the interests of the Class C Noteholders
                  and/or the interests of the Class D Noteholders (of that
                  Series or of any other Series);

         (iii)    subject to (i) and (ii) above and for so long as there are
                  any Class M Notes outstanding (of any Series), only to the
                  interests of the Class M Noteholders if, in the opinion of
                  the Note Trustee, there is or may be a conflict between the
                  interests of the Class M Noteholders and the interests of
                  the Class C Noteholders and/or the interests of the Class D
                  Noteholders (of that Series or of any other Series); and

         (iv)     subject to (i), (ii) and (iii) above and for so long as
                  there are any Class C Notes outstanding (of any Series),
                  only to the interests of the Class C Noteholders if, in the
                  opinion of the Note Trustee, there is or may be a conflict
                  between the interests of the Class C Noteholders and the
                  Class D Noteholders (of that Series or of any other Series).

         The Issuer Trust Deed also contains provisions:

         (a)      limiting the powers of the Class B Noteholders, the Class M
                  Noteholders, the Class C Noteholders and the Class D
                  Noteholders (in each case, of any Series), inter alia, to
                  request or direct the Note Trustee to take any action or to
                  pass an effective Extraordinary Resolution according to the
                  effect thereof on the interests of the Class A Noteholders
                  (of that Series or of any other Series). Except in certain
                  circumstances described in Condition 11, the Issuer Trust
                  Deed contains no such limitation on the powers of the Class
                  A Noteholders, the exercise of which will be binding on the
                  Class B Noteholders, the Class M Noteholders, the Class C
                  Noteholders and the Class D Noteholders respectively,
                  irrespective of the effect thereof on their respective
                  interests;

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         (b)      limiting the powers of the Class M Noteholders, the Class C
                  Noteholders and the Class D Noteholders (in each case, of
                  any Series), inter alia, to request or direct the Note
                  Trustee to take any action or to pass an effective
                  Extraordinary Resolution according to the effect thereof on
                  the interests of the Class B Noteholders (of that Series or
                  of any other Series). Except in certain circumstances
                  described above and in Condition 11, the Issuer Trust Deed
                  contains no such limitation on the powers of the Class B
                  Noteholders, the exercise of which will be binding on the
                  Class M Noteholders, the Class C Noteholders and the Class D
                  Noteholders, respectively, irrespective of the effect
                  thereof on their respective interests;

         (c)      limiting the powers of the Class C Noteholders and the Class
                  D Noteholders (in each case, of any Series), inter alia, to
                  request or direct the Note Trustee to take any action or to
                  pass an effective Extraordinary Resolution according to the
                  effect thereof on the interests of the Class M Noteholders
                  (of that Series or of any other Series). Except in certain
                  circumstances described above and in Condition 11, the
                  Issuer Trust Deed contains no such limitation on the powers
                  of the Class M Noteholders, the exercise of which will be
                  binding on the Class C Noteholders and the Class D
                  Noteholders irrespective of the effect thereof on their
                  respective interests; and

         (d)      limiting the powers of the Class D Noteholders (of any
                  Series), inter alia, to request or direct the Note Trustee
                  to take any action or to pass an effective Extraordinary
                  Resolution according to the effect thereof on the interests
                  of the Class C Noteholders (of that Series or of any other
                  Series). Except in certain circumstances described above and
                  in Condition 11, the Issuer Trust Deed contains no such
                  limitation on the powers of the Class C Noteholders, the
                  exercise of which will be binding on the Class D Noteholders
                  irrespective of the effect thereof on their respective
                  interests.

         The Note Trustee, in determining whether the exercise by it of any
right, power, trust, authority, duty or discretion under or in relation to
these Conditions or any of the Transaction Documents will not be materially
prejudicial to the interests of the Noteholders (or any Series and Class
thereof), will have regard to confirmations (if issued) from each of the
Rating Agencies that the then current ratings of the applicable Series and
Class of Notes would not be reduced, withdrawn or qualified by such exercise
and any other confirmation which it considers, in its sole and absolute
discretion, is appropriate.

(C)      Security

         As security for, inter alia, the payment of all monies payable in
respect of the Notes, the issuer has entered into the Issuer Deed of Charge
creating the Issuer Security in favour of the Issuer Security Trustee for
itself and on trust for, inter alios, the Note Trustee and the Noteholders.

3.       Covenants

         Save with the prior written consent of the Note Trustee or unless
provided in or contemplated under these Conditions or any of the Transaction
Documents to which the Issuer is a party, the Issuer shall not, so long as any
Note remains outstanding:

(A)      Negative Pledge

         create or permit to subsist any mortgage, standard security, pledge,
lien, charge or other Security Interest whatsoever (unless arising by
operation of law), upon the whole or any part of its assets (including any
uncalled capital) or its undertakings, present or future;

(B)      Disposal of Assets

         sell, assign, transfer, lease or otherwise dispose of, or deal with,
or grant any option or present or future right to acquire all or any of its
properties, assets, or undertakings or

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<PAGE>

any interest, estate, right, title or benefit therein or thereto or agree or
attempt or purport to do any of the foregoing;

(C)      Equitable Interest

         permit any person other than itself and the Issuer Security Trustee
(as to itself and on behalf of the Issuer Secured Creditors) to have any
equitable or beneficial interest in any of its assets or undertakings or any
interest, estate, right, title or benefit therein;

(D)      Bank Accounts

         have an interest in any bank account, other than an Issuer Bank
Account or a Swap Collateral Account;

(E)      Restrictions on Activities

         carry on any business other than as described in the Base Prospectus
(as revised, supplemented and/or amended from time to time) relating to the
issue of the Notes and the related activities described therein or as
contemplated in the Transaction Documents relating to the issue of the Notes;

(F)      Borrowings

         incur any indebtedness in respect of borrowed money whatsoever or
give any guarantee or indemnity in respect of any indebtedness or obligation
of any person;

(G)      Merger

         consolidate or merge with any other person or convey or transfer
substantially all of its properties or assets to any other person;

(H)      Waiver or Consent

         permit the validity or effectiveness of any of the Issuer Trust Deed
or the Issuer Deed of Charge or the priority of the security interests created
thereby to be amended, terminated, postponed, waived or discharged, or permit
any other person whose obligations form part of the Issuer Security to be
released from such obligations;

(I)      Employees or premises

         have any employees or premises or subsidiaries;

(J)      Dividends and Distributions

         pay any dividend or make any other distribution to its shareholders
or issue any further shares or alter any rights attaching to its shares as at
the date of the Issuer Deed of Charge;

(K)      Purchase Notes

         purchase or otherwise acquire any Note or Notes; or

(L)      United States activities

         engage in any activities in the United States (directly or through
agents), or derive any income from United States sources as determined under
United States income tax principles, or hold any property if doing so would
cause it to be engaged in a trade or business within the United States as
determined under United States income tax principles.

4.       Interest

(A)      Interest on Fixed Rate Notes

         Each Fixed Rate Note bears interest on its Principal Amount
Outstanding from (and including) the Interest Commencement Date at the rate(s)
per annum equal to the Rate(s) of Interest payable, subject as provided in
these Conditions, in arrear on the Note

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Payment Date(s) in each year specified for such Note in the applicable Final
Terms up to (and including) the Final Maturity Date.

         Except as provided in the applicable Final Terms, the amount of
interest payable in respect of any Fixed Rate Note on each Note Payment Date
for a Fixed Interest Period ending on (but excluding) such date will amount to
the Fixed Coupon Amount. Payments of interest on any Note Payment Date will,
if so specified for such Note in the applicable Final Terms, amount to the
Broken Amount so specified.

         If interest is required to be calculated in respect of any Fixed Rate
Note for a period other than a Fixed Interest Period, such interest shall be
calculated by applying the Rate of Interest specified for such Note in the
applicable Final Terms to the Principal Amount Outstanding on such Note,
multiplying such sum by the applicable Day Count Fraction, and rounding the
resultant figure to the nearest sub-unit of the relevant Specified Currency,
half of any such sub-unit being rounded upwards or otherwise in accordance
with applicable market convention.

         "Day Count Fraction" means, in respect of the calculation of an
amount of interest for any Fixed Rate Note in accordance with this Condition
4(A):

         (i)      if "Actual/Actual (ISMA)" is specified for such Note in the
                  applicable Final Terms:

                  (a)      in the case of Notes where the number of days in
                           the relevant period from (and including) the most
                           recent Note Payment Date for such Notes (or, if
                           none, the Interest Commencement Date) to (but
                           excluding) the relevant Note Payment Date (the
                           "Accrual Period") is equal to or shorter than the
                           Determination Period during which the Accrual
                           Period ends, the number of days in such Accrual
                           Period divided by the product of (1) the number of
                           days in such Determination Period and (2) the
                           number of Determination Dates (as specified in the
                           applicable Final Terms) that would occur in one
                           calendar year; or

                  (b)      in the case of Notes where the Accrual Period is
                           longer than the Determination Period during which
                           the Accrual Period ends, the sum of:

                           (1)      the number of days in such Accrual Period
                                    falling in the Determination Period in
                                    which the Accrual Period begins divided by
                                    the product of (x) the number of days in
                                    such Determination Period and (y) the
                                    number of Determination Dates that would
                                    occur in one calendar year; and

                           (2)      the number of days in such Accrual Period
                                    falling in the next Determination Period
                                    divided by the product of (x) the number
                                    of days in such Determination Period and
                                    (y) the number of Determination Dates that
                                    would occur in one calendar year; and

         (ii)     if "30/360" is specified for such Note in the applicable
                  Final Terms, the number of days in the period from (and
                  including) the most recent Note Payment Date for such Note
                  (or, if none, the Interest Commencement Date) to (but
                  excluding) the relevant Note Payment Date (such number of
                  days being calculated on the basis of a year of 360 days
                  with twelve 30-day months) divided by 360.

(B)      Interest on Floating Rate Notes and Index Linked Interest Notes

(i)      Note Payment Dates

         Each Floating Rate Note or Index Linked Interest Note bears interest
on its Principal Amount Outstanding from (and including) the Interest
Commencement Date and such interest will be payable in arrear on the Note
Payment Date(s) in each year specified for such Note in the applicable Final
Terms. Such interest will be payable in respect of each Interest Period.

         If a Business Day Convention is specified for a Floating Rate Note or
Index Linked Interest Note in the applicable Final Terms and (x) if there is
no numerically corresponding

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day in the calendar month in which a Note Payment Date should occur or (y) if
any Note Payment Date would otherwise fall on a day which is not a Business
Day, then, if the Business Day Convention specified is:

         (1)      in any case where Specified Periods are specified in
                  accordance with Condition 4(B)(i)(b) above, the "Floating
                  Rate Convention", the Note Payment Date for such Note (i) in
                  the case of (x) above, shall be the last day that is a
                  Business Day in the relevant month and the provisions of (B)
                  below shall apply mutatis mutandis or (ii) in the case of
                  (y) above, shall be postponed to the next day which is a
                  Business Day unless it would thereby fall into the next
                  calendar month, in which event (A) such Note Payment Date
                  shall be brought forward to the immediately preceding
                  Business Day and (B) each subsequent Note Payment Date shall
                  be the last Business Day in the month which falls the
                  Specified Period after the preceding applicable Note Payment
                  Date occurred; or

         (2)      the "Following Business Day Convention", the Note Payment
                  Date for such note shall be postponed to the next day which
                  is a Business Day; or

         (3)      the "Modified Following Business Day Convention", the Note
                  Payment Date for such Note shall be postponed to the next
                  day which is a Business Day unless it would thereby fall
                  into the next calendar month, in which event such Note
                  Payment Date shall be brought forward to the immediately
                  preceding Business Day; or

         (4)      the "Preceding Business Day Convention", the Note Payment
                  Date for such Note shall be brought forward to the
                  immediately preceding Business Day.

(ii)     Rate of Interest

         The Rate of Interest payable from time to time in respect of a
Floating Rate Note or Index Linked Interest Note will be determined in the
manner specified for such Note in the applicable Final Terms.

         (a)      ISDA Determination for Floating Rate Notes Where "ISDA
                  Determination" is specified for such Note in the applicable
                  Final Terms as the manner in which the Rate of Interest is
                  to be determined, the Rate of Interest for each Interest
                  Period will be the relevant ISDA Rate plus or minus (as
                  indicated for such Note in the applicable Final Terms) the
                  Margin (if any). For the purposes of this sub-paragraph (a),
                  "ISDA Rate" for an Interest Period means a rate equal to the
                  Floating Rate that would be determined by the Agent Bank or
                  other person specified in the applicable Final Terms under
                  an interest rate swap transaction if the Agent Bank or that
                  other person were acting as Calculation Agent for that swap
                  transaction under the terms of an agreement incorporating
                  the ISDA Definitions and under which:

                  (1)      the Floating Rate Option is as specified for such
                           Note in the applicable Final Terms;

                  (2)      the Designated Maturity is the period specified for
                           such Note in the applicable Final Terms; and

                  (3)      the relevant Reset Date is either (i) if the
                           applicable Floating Rate Option is based on LIBOR
                           or EURIBOR for a currency, the first day of that
                           Interest Period, or (ii) in any other case, as
                           specified for such Note in the applicable Final
                           Terms.

                           For the purposes of this sub-paragraph (a),
                           "Floating Rate", "Calculation Agent", "Floating
                           Rate Option", "Designated Maturity" and "Reset
                           Date" have the meanings given to those terms in the
                           ISDA Definitions.

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<PAGE>

         (b)      Screen Rate Determination for Floating Rate Notes Where
                  "Screen Rate Determination" is specified for a Floating Rate
                  Note in the applicable Final Terms as the manner in which
                  the Rate of Interest is to be determined for such Note, the
                  Rate of Interest for each Interest Period will, subject as
                  provided below, be either:

                  (1)      the offered quotation (if there is only one
                           quotation on the Relevant Screen Page); or

                  (2)      the arithmetic mean (rounded if necessary to the
                           fifth decimal place, with 0.000005 being rounded
                           upwards) of the offered quotations,

                           (expressed as a percentage rate per annum) for the
                           Reference Rate which appears or appear, as the case
                           may be, on the Relevant Screen Page as at 11.00
                           a.m. (London time, in the case of LIBOR, or
                           Brussels time, in the case of EURIBOR) on the
                           Interest Determination Date in question plus or
                           minus the Margin (if any), all as determined by the
                           Agent Bank. If five or more of such offered
                           quotations are available on the Relevant Screen
                           Page, the highest (or, if there is more than one
                           such highest quotation, one only of such
                           quotations) and the lowest (or, if there is more
                           than one such lowest quotation, one only of such
                           quotations) shall be disregarded by the Agent Bank
                           for the purpose of determining the arithmetic mean
                           (rounded as provided above) of such offered
                           quotations.

                           The Issuer Paying Agent and Agent Bank Agreement
                           contains provisions for determining the Rate of
                           Interest pursuant to this sub-paragraph (b) in the
                           event that the Relevant Screen Page is not
                           available or if, in the case of (1) above, no such
                           offered quotation appears or, in the case of (2)
                           above, fewer than three such offered quotations
                           appear, in each case as at the time specified in
                           the preceding paragraph.

                           If the Reference Rate from time to time in respect
                           of a Floating Rate Note is specified for such Note
                           in the applicable Final Terms as being other than
                           LIBOR or EURIBOR, the Rate of Interest in respect
                           of such Note will be determined as provided for
                           such Note in the applicable Final Terms.

(iii)    Minimum Rate of Interest and/or Maximum Rate of Interest

         If the applicable Final Terms specifies a Minimum Rate of Interest
for a Floating Rate Note or Index Linked Interest Note for any Interest
Period, then, in the event that the Rate of Interest for such Note in respect
of such Interest Period determined in accordance with the provisions of
paragraph (ii) above is less than such Minimum Rate of Interest, the Rate of
Interest for such Note for such Interest Period shall be such Minimum Rate of
Interest.

         If the applicable Final Terms specifies a Maximum Rate of Interest
for such Note for any Interest Period, then, in the event that the Rate of
Interest for such Note in respect of such Interest Period determined in
accordance with the provisions of paragraph (ii) above is greater than such
Maximum Rate of Interest, the Rate of Interest for such Note for such interest
Period shall be such Maximum Rate of Interest.

(iv)     Determination of Rate of Interest and calculation of Interest Amounts

         The Agent Bank, in the case of Floating Rate Notes, and the
Calculation Agent (as specified in the applicable Final Terms), in the case of
Index Linked Interest Notes, will at or as soon as practicable after each time
at which the Rate of Interest is to be determined, determine the Rate of
Interest for the relevant Interest Period. In the case of Index Linked
Interest Notes, the Calculation Agent will notify the Agent Bank of the Rate
of Interest for the relevant Interest Period as soon as practicable after
calculating the same.

         The Agent Bank will calculate the amount of interest payable on the
Floating Rate Notes or Index Linked Interest Notes in respect of each
Specified Denomination (each an

                                      9
<PAGE>

"Interest Amount") for the relevant Interest Period. Each Interest Amount
shall be calculated by applying the Rate of Interest to the Principal Amount
Outstanding of each Note, multiplying such sum by the applicable Day Count
Fraction, and rounding the resultant figure to the nearest sub-unit of the
relevant Specified Currency, half of any such sub-unit being rounded upwards
or otherwise in accordance with applicable market convention.

         "Day Count Fraction" means, in respect of the calculation of an
amount of interest for a Floating Rate Note or Index Linked Interest Note in
accordance with this Condition 4(B)(iv) for any Interest Period:

         (a)      if "Actual/365" or "Actual/Actual (ISDA)" is specified for
                  such Note in the applicable Final Terms, the actual number
                  of days in the Interest Period divided by 365 (or, if any
                  portion of that Interest Period falls in a leap year, the
                  sum of (A) the actual number of days in that portion of the
                  Interest Period falling in a leap year divided by 366 and
                  (B) the actual number of days in that portion of the
                  Interest Period falling in a non-leap year divided by 365);

         (b)      if "Actual/365 (Fixed)" is specified for such for such Note
                  in the applicable Final Terms, the actual number of days in
                  the Interest Period divided by 365;

         (c)      if "Actual/365 (Sterling)" is specified for such Note in the
                  applicable Final Terms, the actual number of days in the
                  Interest Period divided by 365 or, in the case of a Note
                  Payment Date falling in a leap year, 366;

         (d)      if "Actual/360" is specified for such Note in the applicable
                  Final Terms, the actual number of days in the Interest
                  Period divided by 360;

         (e)      if "30/360", "360/360" or "Bond Basis" is specified for such
                  Note in the applicable Final Terms, the number of days in
                  the Interest Period divided by 360 (the number of days to be
                  calculated on the basis of a year of 360 days with twelve
                  30-day months (unless (a) the last day of the Interest
                  Period is the 31st day of a month but the first day of the
                  Interest Period is a day other than the 30th or 31st day of
                  a month, in which case the month that includes that last day
                  shall not be considered to be shortened to a 30-day month,
                  or (b) the last day of the Interest Period is the last day
                  of the month of February, in which case the month of
                  February shall not be considered to be lengthened to a
                  30-day month)); and

         (f)      if "30E/360" or "Eurobond Basis" is specified for such Note
                  in the applicable Final Terms, the number of days in the
                  Interest Period divided by 360 (the number of days to be
                  calculated on the basis of a year of 360 days with twelve
                  30-day months, without regard to the date of the first day
                  or last day of the Interest Period unless, in the case of
                  the final Interest Period, the Final Maturity Date (or, as
                  the case may be, Extended Due for Note Payment Date) is the
                  last day of the month of February, in which case the month
                  of February shall not be considered to be lengthened to a
                  30-day month).

(v)      Notification of Rate of Interest and Interest Amounts

         The Agent Bank will cause the Rate of Interest and each Interest
Amount for each Interest Period and the relevant Note Payment Date to be
notified to the Note Trustee, the Issuer Security Trustee, the Issuer Cash
Manager, the Paying Agents, the Registrar and to any stock exchange or other
relevant competent authority or quotation system on which the relevant
Floating Rate Notes or Index Linked Interest Notes are for the time being
listed, quoted and/or traded or by which they have been admitted to listing
and to be published in accordance with Condition 14 as soon as possible after
their determination but in no event later than the fourth Business Day
thereafter. Each Interest Amount and Note Payment Date so notified may
subsequently be amended (or appropriate alternative arrangements made by way
of adjustment) without notice in the event of an extension or shortening of
the Interest Period. Any such amendment or alternative arrangements will be
promptly notified to the Note Trustee and each stock exchange or other
relevant authority

                                      10
<PAGE>

on which the relevant Floating Rate Notes or Index Linked Interest Notes are
for the time being listed or by which they have been admitted to listing and
to Noteholders in accordance with Condition 14.

(vi)     Determination or Calculation by Note Trustee

         If for any reason at any relevant time after the Closing Date, the
Agent Bank or, as the case may be, the Calculation Agent defaults in its
obligation to determine the Rate of Interest for a Floating Rate Note or Index
Linked Interest Note or the Agent Bank defaults in its obligation to calculate
any Interest Amount for such Note in accordance with sub-paragraph (ii)(a) or
(b) above or as otherwise specified for such Note in the applicable Final
Terms, as the case may be, and in each case in accordance with paragraph (iv)
above, the Note Trustee shall determine the Rate of Interest at such rate as,
in its absolute discretion (having such regard as it shall think fit to the
foregoing provisions of this Condition, but subject always to any Minimum Rate
of Interest or Maximum Rate of Interest specified for such Note in the
applicable Final Terms), it shall deem fair and reasonable in all the
circumstances or, as the case may be, the Note Trustee shall calculate the
Interest Amount(s) in such manner as it shall deem fair and reasonable in all
the circumstances and each such determination or calculation shall be deemed
to have been made by the Agent Bank or the Calculation Agent, as the case may
be.

(vii)    Certificates to be final

         All certificates, communications, opinions, determinations,
calculations, quotations and decisions given, expressed, made or obtained for
the purposes of the provisions of this Condition 4(B), whether by the Agent
Bank or the Calculation Agent or the Note Trustee shall (in the absence of
wilful default, bad faith or manifest error) be binding on the Issuer, the
Issuer Cash Manager, the Principal Paying Agent, the Calculation Agent, the
other Paying Agents, the Note Trustee and all Noteholders and (in the absence
of wilful default or bad faith) no liability to the Issuer or the Noteholders
shall attach to the Agent Bank or the Calculation Agent or the Note Trustee in
connection with the exercise or non-exercise by it of its powers, duties and
discretions pursuant to such provisions.

(C)      Interest on Dual Currency Interest Notes

         In the case of a Dual Currency Interest Note where the rate or amount
of interest fails to be determined by reference to an exchange rate, the rate
or amount of interest shall be determined in the manner specified for such
Note in the applicable Final Terms.

(D)      Accrual of interest

         Interest (if any) will cease to accrue on each Note (or in the case
of the redemption of part only of a Note, that part only of such Note) on the
due date for redemption thereof unless, upon due presentation thereof, payment
of principal is improperly withheld or refused in which event, interest will
continue to accrue as provided in the Issuer Trust Deed.

(E)      Deferred Interest

         To the extent that, subject to and in accordance with the relevant
Issuer Priority of Payments, the funds available to the Issuer to pay interest
on any Series and Class of Notes (other than the most senior class of Notes of
any Series then outstanding) on a Note Payment Date (after discharging the
Issuer's liabilities of a higher priority) are insufficient to pay the full
amount of such interest, payment of the shortfall attributable to such Series
and Class of Notes ("Deferred Interest") will not then fall due but will
instead be deferred until the first Note Payment Date for such Notes
thereafter on which sufficient funds are available (after allowing for the
Issuer's liabilities of a higher priority and subject to and in accordance
with the relevant Issuer Priority of Payments) to fund the payment of such
Deferred Interest to the extent of such available funds.

         Such Deferred Interest will accrue interest ("Additional Interest")
at the rate of interest applicable from time to time to the applicable Series
and Class of Notes and

                                      11
<PAGE>

payment of any Additional Interest will also be deferred until the first Note
Payment Date for such Notes thereafter on which funds are available (after
allowing for the Issuer's liabilities of a higher priority subject to and in
accordance with the relevant Issuer Priority of Payments) to the Issuer to pay
such Additional Interest to the extent of such available funds.

         Amounts of Deferred Interest and Additional Interest shall not be
deferred beyond the Final Maturity Date of the applicable Series and Class of
Notes, when such amounts will become due and payable.

         Payments of interest due on a Note Payment Date in respect of the
most senior class of Notes of any Series then outstanding will not be
deferred. In the event of the delivery of an Issuer Enforcement Notice (as
described in Condition 9), the amount of interest in respect of such Notes
that was due but not paid on such Note Payment Date will itself bear interest
at the applicable rate until both the unpaid interest and the interest on that
interest are paid as provided in the Issuer Trust Deed.

5.       Redemption, Purchase and Cancellation

(A)      Final Redemption

         Unless previously redeemed in full as provided in this Condition 5,
the Issuer shall redeem a Series and Class of Notes at their then Principal
Amount Outstanding together with all accrued interest on the Final Maturity
Date in respect of such Notes.

         The Issuer may not redeem such Notes in whole or in part prior to
their Final Maturity Date except as provided in paragraph (B), (D), (E) or (F)
below, but without prejudice to Condition 9.

(B)      Mandatory Redemption of the Notes in Part

         On each Note Payment Date, other than a Note Payment Date on which a
Series and Class of Notes are to be redeemed under Conditions 5(A), (D), (E)
or (F), the issuer shall repay principal in respect of such Notes in an amount
equal to:

         (i)  (a) prior to the earlier to occur of the Step-Up Date (if
                  any) in respect of such Notes and a Pass-Through Trigger
                  Event (and subject to the terms of the Issuer Deed of Charge
                  regarding the funding, replenishment and application of the
                  Issuer Reserve Fund) the lower of:

                  (1)      the amount due to be paid on such Note Payment Date
                           as specified for such Notes in the applicable Final
                           Terms; and

                  (2)      the amount (if any) repaid on the corresponding
                           Loan Payment Date in respect of the related Loan
                           Tranche and pursuant to the Global Intercompany
                           Loan Agreement and which is available, under the
                           terms of the Issuer Deed of Charge and the Issuer
                           Cash Management Agreement to repay principal in
                           respect of such Notes converted, where the
                           Specified Currency for such Notes is not Sterling,
                           into the Specified Currency at the Specified
                           Currency Exchange Rate for such Notes;

                           provided that, in the case of any Series and Class
                           of Pass-Through Notes, the amount of principal to
                           be repaid by the Issuer in respect of such Notes on
                           the applicable Note Payment Date shall be
                           calculated in accordance with sub-paragraph 2
                           above; or

           (b)             following the earlier to occur of the Step-Up Date
                           (if any) in respect of such Notes and a
                           Pass-Through Trigger Event (whereupon each
                           following Monthly Payment Date shall constitute a
                           Note Payment Date) and subject to the terms of the
                           Issuer Deed of Charge regarding the funding,
                           replenishment and application of the Issuer Reserve
                           Fund, the amount (if any) repaid on the
                           corresponding Loan Payment Date in respect of the
                           related Loan Tranche and pursuant to the Global
                           Intercompany Loan

                                      12
<PAGE>

                           Agreement converted, where the Specified Currency
                           for such Notes is not Sterling, into the Specified
                           Currency at the Specified Currency Exchange Rate
                           for such Notes; and

         (ii)     the amount standing to the credit of the Issuer Reserve Fund
                  which is available (subject to the terms of the Issuer Deed
                  of Charge) to repay principal in respect of such Notes
                  converted, where the Specified Currency for such Notes is
                  not Sterling, into Sterling at the Specified Currency
                  Exchange Rate for such Notes.

         To the extent that there are insufficient funds available to the
Issuer to repay the amount due to be paid on such Note Payment Date the Issuer
will be required to repay the shortfall, to the extent that it receives funds
therefor (and subject to the terms of the Issuer Deed of Charge and the Issuer
Cash Management Agreement) on subsequent Note Payment Dates in respect of such
Notes.

(C)      Note Principal Payments and Principal Amount Outstanding

         The principal amount redeemable (the "Note Principal Payment") in
respect of each Note of a particular Series and Class on any Note Payment Date
under Condition 5(B) above shall be a proportion of the amount required as at
that Note Payment Date to be applied in redemption of such Series and Class of
Notes on such date equal to the proportion that the Principal Amount
Outstanding of the relevant Note bears to the aggregate Principal Amount
Outstanding of such Series and Class of Notes rounded down to the nearest
sub-unit of the Specified Currency; provided always that no such Note
Principal Payment may exceed the Principal Amount Outstanding of the relevant
Note.

         On each Note Determination Date the Issuer shall determine (or cause
the Issuer Cash Manager to determine) (i) the amount of any Note Principal
Payment payable in respect of each Note of the relevant series and class on
the immediately following Note Payment Date and (ii) the Principal Amount
Outstanding of each such Note which shall be the Specified Denomination less
(in each case) the aggregate amount of all Note Principal Payments in respect
of such Note that has been paid since the Closing Date and on or prior to that
Note Determination Date (the "Principal Amount Outstanding") and (iii) the
fraction expressed as a decimal to the fifth decimal point (the "Pool
Factor"), of which the numerator is the Principal Amount Outstanding of that
Note (as referred to in (ii) above) and the denominator is the Specified
Denomination. Each determination by or on behalf of the Issuer of any Note
Principal Payment of a Note, the Principal Amount Outstanding of a Note and
the Pool Factor shall in each case (in the absence of wilful default, bad
faith or manifest error) be final and binding on all persons.

         The Issuer will cause each determination of the Note Principal
Payment and the Principal Amount Outstanding and the Pool Factor in respect of
a Series of Class of Notes to be notified forthwith, and in any event not
later than 1.00 p.m. (London time) on the Business Day immediately succeeding
the Note Determination Date, to the Note Trustee, the Issuer Security Trustee,
the Paying Agents, the Registrar, the Agent Bank and (for so long as such
Notes are listed on one or more stock exchanges) the relevant stock exchanges,
and will cause notice of each determination of the Note Principal Payment and
the Principal Amount Outstanding to be given to Noteholders in accordance with
Condition 14 by no later than the Business Day after the relevant Note Payment
Date.

         If the Issuer does not at any time for any reason determine (or cause
the Issuer Cash Manager to determine) a Note Principal Payment or the
Principal Amount Outstanding in accordance with the preceding provisions of
this paragraph, such Note Principal Payment and/or Principal Amount
Outstanding may be determined by the Note Trustee in accordance with this
Condition 6(C) in the manner the Note Trustee in its discretion considers fair
and reasonable in the circumstances, having regard to this Condition 6(C), and
each such determination or calculation shall be deemed to have been made by
the Issuer. Any such determination shall (in the absence of wilful default,
bad

                                      13
<PAGE>

faith or manifest error) be binding on the Issuer, the Issuer Cash Manager
and the Noteholders.

(D)      Optional Redemption in Full

         Subject to the provisos below, upon giving not more than 60 nor less
than 30 days' prior notice to the Note Trustee and the Noteholders in
accordance with Condition 14, the Issuer may redeem a Series and Class of
Notes at their aggregate Redemption Amount together with any accrued and
unpaid interest in respect thereof on the following dates:

         (i)      the date specified as the Step-Up Date for such Notes in the
                  applicable Final Terms and on any Note Payment Date for such
                  Notes thereafter; or

         (ii)     on such Note Payment Date on which the aggregate Principal
                  Amount Outstanding of such Notes and all other Classes of
                  Notes of the same Series is less than 10 per cent. of the
                  aggregate Principal Amount Outstanding of such Series of
                  Notes as at the Closing Date on which such Series of Notes
                  were issued,

         PROVIDED THAT (in either of the cases above), on or prior to giving
any such notice, the Issuer shall have provided to the Note Trustee a
certificate signed by two directors of the Issuer to the effect that (a) it
will have the funds, not subject to any interest of any other person, required
to redeem such Notes as aforesaid and any amounts required to be paid in
priority to or pari passu with such Notes outstanding in accordance with the
terms and conditions of the Issuer Deed of Charge and the Issuer Cash
Management Agreement, and (b) the Repayment Tests will be satisfied following
the making of such redemptions.

(E)      Optional Redemption for Tax and other Reasons

         If the Issuer at any time satisfies the Note Trustee immediately
prior to the giving of the notice referred to below that on the next Note
Payment Date either:

         (i)      the Issuer would be required to deduct or withhold from any
                  payment of principal or interest or any other amount under a
                  Series and Class of Notes any amount for or on account of
                  any present or future taxes, duties, assessments or
                  governmental charges of whatever nature; or

         (ii)     Funding 2 would be required to deduct or withhold from
                  amounts due in respect of the Loan Tranche under the Global
                  Intercompany Loan Agreement which was funded by such Notes
                  any amount on account of any present or future taxes,
                  duties, assessments or governmental charges of whatever
                  nature; and

         (iii)    in relation to either the events described in (i) and (ii)
                  above, such obligation of the Issuer or Funding 2 (as the
                  case may be) cannot be avoided by the Issuer or Funding 2
                  (as the case may be) taking reasonable measures available to
                  it,

then the Issuer shall use its reasonable endeavours to arrange the
substitution of a company incorporated in another jurisdiction approved by the
Note Trustee as principal debtor under such Notes and/or as lender of such
Loan Tranche as the case may be, upon the Note Trustee being satisfied that
(1) such substitution will not be materially prejudicial to the Noteholders,
and upon the Issuer Security Trustee being satisfied that (1) that the
position of the Issuer Secured Creditors will not thereby be adversely
affected, and (2) that such substitution would not require registration of any
new security under United States securities laws or would materially increase
the disclosure requirements under United States law or the costs of issuance.
Only if the Issuer is unable to arrange a substitution will the Issuer be
entitled to redeem the Notes as described in this Condition 5(E).

         Subject to the proviso below, if the Issuer is unable to arrange a
substitution as described above and, as a result, one or more of the events
described in (i) or (ii) above (as the case may be) is continuing, then the
Issuer may, having given not more than 60 nor less than 30 days' notice to the
Note Trustee and the Noteholders in accordance with

                                      14
<PAGE>

Condition 14, redeem all (but not some only) of such Notes on the immediately
succeeding Note Payment Date for such Notes at their aggregate Redemption
Amount together with any accrued and unpaid interest in respect thereof
provided that (in either case), prior to giving any such notice, the Issuer
shall have provided to the Note Trustee:

         (a)      a certificate signed by two directors of the Issuer stating
                  the circumstances referred to in (i) or (ii) and (iii) above
                  prevail and setting out details of such circumstances; and

         (b)      an opinion in form and substance satisfactory to the Note
                  Trustee of independent legal advisors of recognised standing
                  to the effect that the issuer has or will become obliged to
                  pay such additional amounts as a result of such change or
                  amendment.

         The Note Trustee shall be entitled to accept such certificate and
opinion as sufficient evidence of the satisfaction of the circumstance set out
in (i) or (ii) and (iii) above, in which event they shall be conclusive and
binding on the Noteholders. The Issuer may only redeem such Notes as
aforesaid, if on or prior to giving such notice, the Issuer shall have
provided to the Note Trustee a certificate signed by two directors of the
Issuer to the effect that (a) it will have the funds, not subject to any
interest of any other person, required to redeem such Notes as aforesaid and
any amounts required to be paid in priority to or pari passu with such Notes
outstanding in accordance with the terms and conditions of the Issuer Deed of
Charge and the Issuer Cash Management Agreement, and (b) the Repayment Tests
will be satisfied following the making of such redemptions.

         In addition to the foregoing, if at any time it becomes unlawful for
the Issuer to make, fund or allow to remain outstanding the Global
Intercompany Loan, then the Issuer may require Funding 2 upon giving not more
than 60 nor less than 30 days' (or such shorter period as may be required
under any relevant law) prior written notice to the Issuer (whereupon the
Issuer shall give notice to the Noteholders in accordance with Condition 14),
the Issuer Security Trustee and the Note Trustee, to prepay the Global
Intercompany Loan on any Loan Payment Date subject to and in accordance with
the provisions of the Global Intercompany Loan Agreement to the extent
necessary to cure such illegality. Such monies received by the Issuer shall be
used to redeem the Notes in full, together with any accrued and unpaid
interest, on the equivalent Note Payment Date.

(F) Optional Redemption for Implementation of Capital Requirements Directive

         If the Capital Requirements Directive, as described in the
consultation paper on the EU's implementation of the New Basel Capital Accord
published on 14 July 2004 by the European Commission, has been implemented in
the United Kingdom, whether by rule of law, recommendation or best practice or
by any other regulation, then on the Note Payment Date specified in the
applicable Final Terms (if any) and on any Note Payment Date for such Notes
thereafter, the Issuer may, by giving not more than 60 nor less than 30 days'
(or such shorter period as may be required under any relevant law) prior
notice to the Note Trustee and the Noteholders in accordance with Condition
14, redeem all (but not some only) of the Notes at their aggregate Redemption
Amount together with any accrued and unpaid interest in respect thereof on the
next following Note Payment Date for such Notes, provided that an Issuer
Enforcement Notice has not been served. The Issuer may only redeem the Notes
as aforesaid, if on or prior to giving such notice, the Issuer shall have
provided to the Note Trustee a certificate signed by two directors of the
Issuer to the effect that (a) it will have the funds, not subject to any
interest of any other person, required to redeem such Notes as aforesaid and
any amounts required to be paid in priority to or pari passu with such Notes
outstanding in accordance with the terms and conditions of the Issuer Deed of
Charge and the Cash Management Agreement, and (b) the Repayment Tests will be
satisfied following the making of such redemptions.

                                      15
<PAGE>

(G)      Redemption Amounts

         For the purposes of this Condition 5, "Redemption Amount" means, in
respect of any Series and Class of Notes, the amount specified in relation to
such Notes in the applicable Final Terms or, if not so specified:

         (i)      in respect of each Note (other than a Zero Coupon Note), the
                  Principal Amount Outstanding of such Note; and

         (ii)     in respect of each Zero Coupon Note, an amount (the
                  "Amortised Face Amount") calculated in accordance with the
                  following formula:

         Redemption Amount = RP x (1 + AY) y

         where:

         RP    =  the Reference Price;

         AY    =  the Accrual Yield expressed as a decimal; and

         y     =  a fraction, the numerator of which is equal to the number
                  of days (calculated on the basis of a 360-day year
                  consisting of 12 months of 30 days each) from (and
                  including) the first Closing Date of the applicable Series
                  and Class of Notes to (but excluding) the date fixed for
                  redemption or, as the case may be, the date upon which such
                  Note becomes due and payable and the denominator of which is
                  360.

         If the amount payable in respect of any Zero Coupon Note upon
redemption of such Zero Coupon Note pursuant to Condition 5(A), (B), (D), (E)
or (F) above or upon its becoming due and repayable as provided in Condition 9
is improperly withheld or refused, the amount due and repayable in respect of
such Note shall be the amount calculated as provided in paragraph (b) above as
though the reference therein to the date fixed for the redemption or, as the
case may be, the date upon which such Note becomes due and payable were
replaced by reference to the date which is the earlier of:

         (i)      the date on which all amounts due in respect of such Note
                  have been paid; and

         (ii)     the date on which the full amount of the moneys payable in
                  respect of such Note has been received by the Principal
                  Paying Agent or the Note Trustee or the Registrar and notice
                  to that effect has been given to the Noteholders in
                  accordance with Condition 14.

6.       Payments

(A)      Payment of Interest and Principal

         Payments of principal shall be made by cheque in the Specified
Currency, drawn on a Designated Bank, or upon application by a Holder of the
relevant Note to the Specified Office of the Principal Paying Agent not later
than the fifth Business Day before the Record Date (as defined in Condition
6(G)), by transfer to a Designated Account maintained by the payee with a
Designated Bank and (in the case of final redemption) upon surrender (or, in
the case of part payment only, endorsement) of the relevant Note Certificates
at the Specified Office of any Paying Agent.

         Payments of interest shall be made by cheque in the Specified
Currency drawn on a Designated Bank, or upon application by a Holder of the
relevant Note to the Specified Office of the Principal Paying Agent not later
than the fifth Business Day before the Record Date (as defined in Condition
6(G)), by transfer to a Designated Account maintained by the payee with a
Designated Bank and (in the case of interest payable on final redemption) upon
surrender (or, in the case of part payment only, endorsement) of the relevant
Note Certificates at the Specified Office of any Paying Agent.

                                      16
<PAGE>

(B)      Laws and Regulations

         Payments of principal and interest in respect of the Notes are
subject in all cases to any fiscal or other laws and regulations applicable
thereto. Noteholders will not be charged commissions or expenses on payments.

(C) Payment of Interest following a failure to pay Principal

         If payment of principal is improperly withheld or refused on or in
respect of any Note or part thereof, the interest which continues to accrue in
respect of such Note in accordance with Condition 4 will be paid in accordance
with this Condition 6.

(D)      Change of Agents

         The initial Principal Paying Agent, the Registrar, the Transfer Agent
and the initial Paying Agents and their respective initial Specified Offices
are listed at the end of these Conditions. The Issuer reserves the right,
subject to the prior written approval of the Note Trustee, at any time to vary
or terminate the appointment of the Principal Paying Agent, the Registrar, the
Transfer Agent and the US Paying Agent and to appoint additional or other
Paying Agents. The Issuer will at all times maintain a Paying Agent with a
Specified Office in London and a US Paying Agent with a Specified Office in
New York and a Registrar. Except where otherwise provided in the Issuer Trust
Deed, the Issuer will cause at least 30 days' notice of any change in or
addition to the Paying Agents, the Transfer Agent or the Registrar or their
Specified Offices to be given in accordance with Condition 14 and will notify
the Rating Agencies of such change or addition.

(E)      No payment on non-Business Day

         Where payment is to be made by transfer to a Designated Account,
payment instructions (for value the due date or, if the due date is not a
Payment Business Day, for value the next succeeding Payment Business Day) will
be initiated and, where payment is to be made by cheque, the cheque will be
mailed (i) (in the case of payments of principal and interest payable on
redemption) on the later of the due date for payment and the day on which the
relevant Note is surrendered (or, in the case of part payment only, endorsed)
at the Specified Office of a Paying Agent and (ii) (in the case of payments of
interest payable other than on redemption) on the due date for payment. A
Holder of a Note shall not be entitled to any interest or other payment in
respect of any delay in payment resulting from (A) the due date for a payment
not being a Payment Business Day or (B) a cheque mailed in accordance with
this Condition 6(E) arriving after the due date for payment or being lost in
the mail.

(F)      Partial Payment

         If a Paying Agent makes a partial payment in respect of any Note, the
Issuer shall procure and the Registrar will ensure that the amount and date of
such payment are noted on the Register and, in the case of partial payment
upon presentation of a Note Certificate, that a statement indicating the
amount and date of such payment is endorsed on the relevant Note Certificate.

(G)      Record Date

         Each payment in respect of a Note will be made to the persons shown
as the Holder in the Register at the opening of business in the place of the
Registrar's Specified Office on the fifteenth day before the due date for such
payment (the "Record Date"). Where payment in respect of a Note is to be made
by cheque, the cheque will be mailed to the address shown as the address of
the Holder in the Register at the opening of business on the relevant Record
Date.

(H)      Payment of Interest

         Subject as provided otherwise in these Conditions, if interest is not
paid in respect of a Note of any class on the date when due and payable (other
than because the due date is not a Payment Business Day) or by reason of
non-compliance with Condition 6(A), then

                                      17
<PAGE>

such unpaid interest shall itself bear interest at the Rate of interest
applicable from time to time to such Note until such interest and interest
thereon are available for payment and notice thereof has been duly given in
accordance with Condition 14.

7.       Prescription

         Claims against the Issuer for payment of interest and principal on
redemption shall be prescribed and become void if the relevant Note
Certificates are not surrendered for payment within a period of 10 years from
the relevant date in respect thereof. After the date on which a payment under
a Note becomes void in its entirety, no claim may be made in respect thereof.
In this Condition 7, the "relevant date", in respect of a payment under a
Note, is the date on which the payment in respect thereof first becomes due or
(if the full amount of the monies payable in respect of those payments under
all the Notes due on or before that date has not been duly received by the
Principal Paying Agent, the US Paying Agent or the Note Trustee on or prior to
such date) the date on which the full amount of such monies having been so
received or notice to that effect is duly given to Noteholders in accordance
with Condition 14.

8.       Taxation

         All payments in respect of the Notes will be made without withholding
or deduction for, or on account of, any present or future taxes, duties or
charges of whatsoever nature unless the Issuer or any relevant Paying Agent is
required by applicable law to make any payment in respect of the Notes subject
to any such withholding or deduction. In that event, the Issuer or such Paying
Agent shall make such payment after such withholding or deduction has been
made and shall account to the relevant authorities for the amount so required
to be withheld or deducted. No Paying Agent nor the Issuer will be obliged to
make any additional payments to Noteholders in respect of such withholding or
deduction.

         The occurrence of the Issuer or any Paying Agent being required to
make a withholding or deduction in the circumstances outlined in the previous
paragraph shall not constitute a Note Event of Default.

         The Issuer will treat the US Notes as indebtedness for US federal
income tax purposes. Each Holder of a US dollar denominated Note, by the
acceptance thereof, agrees to treat such US dollar denominated Note as
indebtedness for US federal income tax purposes.

9.       Events of Default

(A)      Class A Noteholders

         The Note Trustee in its absolute discretion may (and if so requested
in writing by the Holders of not less than 25 per cent. in aggregate Principal
Amount Outstanding of the Class A Notes (which for this purpose and the
purpose of any Extraordinary Resolution referred to in this Condition 9(A)
means the Class A Notes of all Series constituted by the Issuer Trust Deed) or
if so directed by or pursuant to an Extraordinary Resolution passed at a
meeting of the Holders of the Class A Notes shall), subject in each case to
being indemnified and/or secured to its satisfaction, give notice (a "Class A
Issuer Enforcement Notice") to the Issuer, the Issuer Security Trustee and the
Funding 2 Security Trustee of a Note Event of Default (as defined below)
declaring (in writing) the Class A Notes and all other Notes to be due and
repayable (and they shall forthwith become due and repayable) at any time
after the happening of any of the following events which is continuing or
unwaived:

         (i)      default being made for a period of seven Business Days in
                  the payment of any amount of principal of the Class A Notes
                  of any Series when and as the same ought to be paid in
                  accordance with these Conditions or default being made for a
                  period of fifteen Business Days in the payment of any amount
                  of interest on the Class A Notes of any Series when and as
                  the same ought to be paid in accordance with these
                  Conditions; or

                                      18
<PAGE>

the Class B Notes (which for this purpose and the purpose of any Extraordinary
Resolution referred to in this Condition 9(B), means the Class B Notes of all
Series constituted by the Issuer Trust Deed) or if so directed by or pursuant
to an Extraordinary Resolution passed at a meeting of the Holders of the Class
B Notes shall), subject in each case to it being indemnified and/or secured to
its satisfaction, give notice (a "Class B Issuer Enforcement Notice") to the
Issuer, the Issuer Security Trustee and the Funding 2 Security Trustee of a
Note Event of Default (as defined below) and declaring (in writing) the Class
B Notes and all other Notes to be due and repayable (and they shall forthwith
become due and repayable) at any time after the happening of any of the
following events:

         (a)      default being made for a period of seven Business Days in
                  the payment of any amount of principal of the Class B Notes
                  of any Series when and as the same ought to be paid in
                  accordance with these Conditions or default being made for a
                  period of fifteen Business Days in the payment of any amount
                  of interest on the Class B Notes of any Series when and as
                  the same ought to be paid in accordance with these
                  Conditions; or

         (b)      the occurrence of any of the events in Condition 9(A)(ii),
                  (iii), (iv), (v) or (vi) above provided that the references
                  in Condition 9(A)(ii), Condition 9(A) (iv) and Condition
                  9(A)(vi) to Class A Notes shall be read as references to
                  Class B Notes.

(B)      Class M Noteholders

         This Condition 9(C) shall have no effect if, and for as long as, any
Class A Notes or Class B Notes of any Series are outstanding. Subject thereto,
for so long as any Class M Notes are outstanding, the Note Trustee in its
absolute discretion may (and if so requested in writing by the Holders of not
less than 25 per cent. in aggregate Principal Amount Outstanding of the Class
M Notes (which for this purpose and the purpose of any Extraordinary
Resolution referred to in this Condition 9(C), means the Class C Notes of all
Series constituted by the Issuer Trust Deed) or if so directed by or pursuant
to an Extraordinary Resolution passed at a meeting of the Holders of the Class
M Notes shall), subject in each case to it being indemnified and/or secured to
its satisfaction, give notice (a "Class M Note Issuer Enforcement Notice") to
the Issuer, the Issuer Security Trustee and the Funding 2 Security Trustee of
a Note Event of Default (as defined below) and declaring (in writing) the
Class M Notes and all other Notes to be due and repayable (and they shall
forthwith become due and repayable) at any time after the happening of any of
the following events:

         (a)      default being made for a period of seven Business Days in
                  the payment of any amount of principal of the Class M Notes
                  of any Series when and as the same ought to be paid in
                  accordance with these Conditions or default being made for a
                  period of fifteen Business Days in the payment of any amount
                  of interest on the Class M Notes of any Series when and as
                  the same ought to be paid in accordance with these
                  Conditions; or

         (b)      the occurrence of any of the events in Condition 9(A)(ii),
                  (iii), (iv), (v) or (vi) above provided that the references
                  in Condition 9(A)(ii), Condition 9(A)(iv) and Condition 9(A)
                  (vi) to Class A Notes shall be read as references to Class M
                  Notes.

(C)      Class C Noteholders

This Condition 9(D) shall have no effect if, and for as long as, any Class A
Notes, Class B Notes or Class M Notes of any Series are outstanding. Subject
thereto, for so long as any Class C Notes are outstanding, the Note Trustee in
its absolute discretion may (and if so requested in writing by the Holders of
not less than 25 per cent. in aggregate Principal Amount Outstanding of the
Class C Notes (which for this purpose and the purpose of any Extraordinary
Resolution referred to in this Condition 9(D), means the

                                      19
<PAGE>

10.      Enforcement of Notes

(A)      Enforcement

         The Note Trustee may, at its discretion and without notice at any
time and from time to time, take such steps and institute such proceedings
against the Issuer or any other person as it may think fit to enforce the
provisions of the Notes, the Issuer Trust Deed (including these Conditions) or
any of the other Transaction Documents to which it is a party and may, at its
discretion and without notice, at any time after the Issuer Security has
become enforceable (including after the service of an Issuer Enforcement
Notice in accordance with Condition 9), instruct the Issuer Security Trustee
to take such steps as it may think fit to enforce the Issuer Security. The
Note Trustee shall not be bound to take such steps or institute such
proceedings unless:

         (i)      (subject in all cases to restrictions contained in the
                  Issuer Trust Deed to protect the interests of any higher
                  ranking class of Noteholders) it shall have been so directed
                  by an Extraordinary Resolution of the Class A Noteholders,
                  the Class B Noteholders, the Class M Noteholders, the Class
                  C Noteholders or the Class D Noteholders or so requested in
                  writing by the Holders of at least one quarter in aggregate
                  Principal Amount Outstanding of the Class A Notes, Class B
                  Notes, Class M Notes, Class C Notes or Class D Notes; and

         (ii)     it shall have been indemnified and/or secured to its
                  satisfaction.

         The Issuer Security Trustee shall not be bound to take such steps or
take any such other action unless it is so directed by the Note Trustee and
indemnified and/or secured to its satisfaction.

         Amounts available for distribution after enforcement of the Issuer
Security shall be distributed in accordance with the terms of the Issuer Deed
of Charge.

         No Noteholder may institute any proceedings against the Issuer to
enforce its rights under or in respect of the Notes, the Issuer Trust Deed or
the Issuer Deed of Charge unless (1) the Note Trustee or the Issuer Security
Trustee, as applicable, has become bound to institute proceedings and has
failed to do so within 30 days of becoming so bound and (2) such failure is
continuing; provided that, no Class B Noteholder, Class M Noteholder, Class C
Noteholder or Class D Noteholder will be entitled to commence proceedings for
the winding up or administration of the Issuer unless there are no outstanding
Notes of a class with higher priority, or if Notes of a class with higher
priority are outstanding, there is consent of Noteholders of not less than one
quarter of the aggregate principal amount of the Notes outstanding (as defined
in the Issuer Trust Deed) of the class or classes of Notes with higher
priority. Notwithstanding the foregoing and notwithstanding any other
provision of the Issuer Trust Deed, the right of any Noteholder to receive
payment of principal and interest on its Notes on or after the due date for
such principal or interest, or to institute suit for the enforcement of
payment of that principal or interest, may not be impaired or affected without
the consent of that Noteholder.

(B)      Post Enforcement Call Option

         In the event that:

         (i)      the Issuer Security is enforced and the Issuer Security
                  Trustee determines that (a) the proceeds of such
                  enforcement, after distribution of such proceeds to the
                  persons entitled thereto ranking in priority to the Notes
                  under the Issuer Deed of Charge and to the Noteholders (to
                  the extent entitled thereto), are insufficient to pay in
                  full all principal and interest and other amounts whatsoever
                  due in respect of the Notes and all other claims ranking
                  pari passu therewith (b) such proceeds of enforcement have
                  been so distributed in accordance with the terms of the
                  Issuer Deed of Charge and (c) there are no further assets
                  available to pay principal and interest and other amounts
                  whatsoever due in respect of the Notes; or

                                      20
<PAGE>

         (ii)     a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class B Notes of
                  any two or more Series but does not give rise to a conflict
                  of interest between the holders of such two or more Series
                  of Class B Notes, shall be deemed to have been duly passed
                  if passed at a single meeting of the holders of such two or
                  more series of Class B Notes; and

         (iii)    a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class B Notes of
                  any two or more Series and gives or may give rise to a
                  conflict of interest between the holders of such two or more
                  Series of Class B Notes, shall be deemed to have been duly
                  passed only if, in lieu of being passed at a single meeting
                  of the holders of such two or more Series of Class B Notes,
                  it shall be passed at separate meetings of the holders of
                  such two or more Series of Class B Notes.

(3)      Class M Notes

         In respect of the Class M Notes, the Issuer Trust Deed provides that,
subject to Condition 11(A)(6):

         (i)      a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class M Notes of
                  one Series only shall be deemed to have been duly passed if
                  passed at a meeting of the holders of the Class M Notes of
                  that Series;

         (ii)     a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class M Notes of
                  any two or more Series but does not give rise to a conflict
                  of interest between the holders of such two or more Series
                  of Class M Notes, shall be deemed to have been duly passed
                  if passed at a single meeting of the holders of such two or
                  more series of Class M Notes; and

         (iii)    a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class M Notes of
                  any two or more Series and gives or may give rise to a
                  conflict of interest between the holders of such two or more
                  Series of Class M Notes, shall be deemed to have been duly
                  passed only if, in lieu of being passed at a single meeting
                  of the holders of such two or more Series of Class M Notes,
                  it shall be passed at separate meetings of the holders of
                  such two or more Series of Class M Notes.

(4)      Class C Notes

         In respect of the Class C Notes, the Issuer Trust Deed provides that,
subject to Condition 11(A)(6):

         (i)      a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class C Notes of
                  one Series only shall be deemed to have been duly passed if
                  passed at a meeting of the holders of the Class C Notes of
                  that Series;

         (ii)     a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class C Notes of
                  any two or more Series but does not give rise to a conflict
                  of interest between the holders of such two or more Series
                  of Class C Notes, shall be deemed to have been duly passed
                  if passed at a single meeting of the holders of such two or
                  more series of Class C Notes; and

         (iii)    a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class C Notes of
                  any two or more Series and gives or may give rise to a
                  conflict of interest between the holders of such two or more
                  Series of Class C Notes, shall be deemed to have been duly
                  passed only if, in lieu of being passed at a single meeting
                  of the holders of such two or more Series of Class C Notes,
                  it shall be passed at separate meetings of the holders of
                  such two or more Series of Class C Notes.

                                      21
<PAGE>

(5)      Class D Notes

         In respect of the Class D Notes, the Issuer Trust Deed provides that,
subject to Condition 11(A)(6):

         (i)      a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class D Notes of
                  one Series only shall be deemed to have been duly passed if
                  passed at a meeting of the holders of the Class D Notes of
                  that Series;

         (ii)     a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class D Notes of
                  any two or more Series but does not give rise to a conflict
                  of interest between the holders of such two or more Series
                  of Class D Notes, shall be deemed to have been duly passed
                  if passed at a single meeting of the holders of such two or
                  more series of Class D Notes; and

         (iii)    a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of the Class D Notes of
                  any two or more Series and gives or may give rise to a
                  conflict of interest between the holders of such two or more
                  Series of Class D Notes, shall be deemed to have been duly
                  passed only if, in lieu of being passed at a single meeting
                  of the holders of such two or more Series of Class D Notes,
                  it shall be passed at separate meetings of the holders of
                  such two or more Series of Class D Notes.

(6)      Sub-classes of Notes

         In respect of a Class of Notes of any Series constituting two or more
sub-classes, the Issuer Trust Deed provides that:

         (i)      a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of Notes of one
                  sub-class only of such Class, shall be deemed to have been
                  duly passed if passed at a meeting of the holders of the
                  Notes of such sub-class;

         (ii)     a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders of more than one
                  sub-class of Notes of such Class but does not give rise to a
                  conflict of interest between the holders of such sub-classes
                  of Notes, shall be deemed to have been duly passed if passed
                  at a single meeting of the holders of all such sub-classes
                  of Notes; and

         (iii)    a resolution which, in the sole opinion of the Note Trustee,
                  affects the interests of the holders more than one sub-class
                  of Notes of such Class and gives or may give rise to a
                  conflict of interest between the holders of such sub-classes
                  of Notes, shall be deemed to have been duly passed only if,
                  in lieu of being passed at a single meeting of the holders
                  of such sub-classes of Notes, it shall be passed at separate
                  meetings of the holders of such sub-classes of Notes.

         Subject as provided in the following paragraph, the quorum at any
meeting of the Noteholders of any Series and Class of Notes or any one or more
Series of Notes of the same Class convened to consider an Extraordinary
Resolution will be one or more persons holding or representing more than half
of the aggregate Principal Amount Outstanding of such Series and Class of
Notes or such one or more Series of Notes of the same Class or, at any
adjourned meeting, one or more persons being or representing Noteholders of
such Series and Class of Notes or such one or more Series of Notes the same
Class, whatever the aggregate Principal Amount Outstanding of the Notes so
held or represented.

         The quorum at any meeting of the Noteholders for passing an
Extraordinary Resolution which includes the sanctioning of a Basic Terms
Modification shall be one or more persons holding or representing not less
than three quarters of the aggregate Principal Amount

                                      22
<PAGE>

Outstanding of the Notes of the relevant Series and Class or of the relevant
one or more Series of Notes of the same Class.

         An Extraordinary Resolution passed at any meeting of Noteholders
shall be binding on all of the Noteholders of the relevant Series and Class or
of the relevant one or more Series of Notes of the same Class whether or not
they are present at the meeting.

         In connection with any meeting of the Noteholders where the relevant
Notes (or any of them) are not denominated in Sterling, the Principal Amount
Outstanding of any Note not denominated in Sterling shall be converted into
Sterling at the relevant Specified Currency Exchange Rate.

         A resolution signed by or on behalf of all the Noteholders of the
relevant Series and Class who for the time being are entitled to receive
notice of a meeting under the Issuer Trust Deed shall for all purposes be as
valid and effective as an Extraordinary Resolution passed at a meeting of such
Series and Class of Noteholders.

(B)      Programme Resolution

         Notwithstanding the provisions of Condition 11(A), any Extraordinary
Resolution of the Noteholders of any Class of Notes to direct the Note Trustee
to take any enforcement action pursuant to Condition 9 and Condition 10 (a
"Programme Resolution") shall only be capable of being passed at a single
meeting of the Noteholders of all Series of such Class of Notes. The quorum at
any such meeting for passing a Programme Resolution shall be one or more
persons holding or representing more than half of the aggregate Principal
Amount Outstanding of the Notes of such Class or, at any adjourned and
reconvened meeting, one or more persons being or representing Noteholders of
such Class of Notes, whatever the aggregate Principal Amount Outstanding of
such Class of Notes so held or represented by them.

         A Programme Resolution passed at any meeting of all Series of any
Class of Notes shall be binding on all Noteholders of all Series of that Class
of Notes, whether or not they are present or represented at the meeting.

(C)      Limitations on Noteholders

         Subject as provided in Condition 11(D):

         (i)      an Extraordinary Resolution of the Class A Noteholders of
                  any Series shall be binding on all Class B Noteholders, all
                  Class M Noteholders, all Class C Noteholders and all Class D
                  Noteholders (in each case, of that Series or of any other
                  Series);

         (ii)     no Extraordinary Resolution of the Class B Noteholders of
                  any Series shall take effect for any purpose while any Class
                  A Notes (of that Series or of any other Series) remain
                  outstanding unless it shall have been sanctioned by an
                  Extraordinary Resolution of the Class A Noteholders of each
                  Series or the Note Trustee is of the opinion that it would
                  not be materially prejudicial to the interests of the Class
                  A Noteholders of each Series (as applicable);

         (iii)    no Extraordinary Resolution of the Class M Noteholders of
                  any Series shall take effect for any purpose while any Class
                  A Notes or Class B Notes (in each case, of that Series or of
                  any other Series) remain outstanding unless it shall have
                  been sanctioned by an Extraordinary Resolution of the Class
                  A Noteholders and an Extraordinary Resolution of the Class B
                  Noteholders, in each case of each Series or the Note Trustee
                  is of the opinion that it would not be materially
                  prejudicial to the respective interests of the Class A
                  Noteholders and/or the Class B Noteholders of each Series
                  (as applicable);

         (iv)     no Extraordinary Resolution of the Class C Noteholders of
                  any Series shall take effect for any purpose while any Class
                  A Notes, Class B Notes or Class M Notes (in each case, of
                  that Series or of any other Series) remain outstanding
                  unless it shall have been sanctioned by an Extraordinary
                  Resolution of the Class

                                      23
<PAGE>

                  A Noteholders, an Extraordinary Resolution of the Class B
                  Noteholders and an Extraordinary Resolution of the Class M
                  Noteholders, in each case of each Series or the Note Trustee
                  is of the opinion that it would not be materially
                  prejudicial to the respective interests of the Class A
                  Noteholders, the Class B Noteholders and/or the Class M
                  Noteholders of each Series (as applicable);

         (v)      no Extraordinary Resolution of Class D Noteholders of any
                  Series shall take effect for any purpose while any Class A
                  Notes, Class B Notes, Class M Notes or Class C Notes (in
                  each case, of that Series or of any other Series) remain
                  outstanding unless it shall have been sanctioned by an
                  Extraordinary Resolution of the Class A Noteholders, an
                  Extraordinary Resolution of the Class B Noteholders, an
                  Extraordinary Resolution of the Class M Noteholders and an
                  Extraordinary Resolution of the Class C Noteholders, in each
                  case of each Series or the Note Trustee is of the opinion
                  that it would not be materially prejudicial to the
                  respective interests of the Class A Noteholders, the Class B
                  Noteholders, the Class M Noteholders and/or the Class C
                  Noteholders of each Series (as applicable).

(D)      Approval of Modifications and Waivers by Noteholders

         No Extraordinary Resolution of the Noteholders of any one or more
Series of Class A Notes to sanction a modification of, or any waiver or
authorisation of any breach, or proposed breach of, any of the provisions of
the Issuer Transaction Documents or the Conditions of such Notes shall take
effect unless it has been sanctioned by an Extraordinary Resolution of the
Class B Noteholders, an Extraordinary Resolution of the Class M Noteholders,
an Extraordinary Resolution of the Class C Noteholders and an Extraordinary
Resolution of the Class D Noteholders, in each case of each Series, or the
Note Trustee is of the opinion that it would not be materially prejudicial to
the respective interests of the Class B Noteholders, the Class M Noteholders,
the Class C Noteholders and the Class D Noteholders of each Series.

         After the Class A Notes have been fully redeemed, no Extraordinary
Resolution of the Noteholders of any one or more Series of Class B Notes to
sanction a modification of, or any waiver or authorisation of any breach, or
proposed breach of, any of the provisions of the Issuer Transaction Documents
or the Conditions of such Notes shall take effect unless it has been
sanctioned by an Extraordinary Resolution of the Class M Noteholders, an
Extraordinary Resolution of the Class C Noteholders and an Extraordinary
Resolution of the Class D Noteholders, in each case of each Series, or the
Note Trustee is of the opinion that it would not be materially prejudicial to
the respective interests of the Class M Noteholders, the Class C Noteholders
and the Class D Noteholders of each Series.

         After the Class A Notes and Class B Notes have been fully redeemed,
no Extraordinary Resolution of the Noteholders of any one or more Series of
Class M Notes to sanction a modification of, or any waiver or authorisation of
any breach, or proposed breach of, any of the provisions of the Issuer
Transaction Documents or the Conditions of such Notes shall take effect unless
it has been sanctioned by an Extraordinary Resolution of the Class C
Noteholders and an Extraordinary Resolution of the Class D Noteholders, in
each case of each Series, or the Note Trustee is of the opinion that it would
not be materially prejudicial to the respective interests of the Class C
Noteholders and the Class D Noteholders of each Series.

         After the Class A Notes, Class B Notes and Class M Notes have been
fully redeemed, no Extraordinary Resolution of the Noteholders of any one or
more Series of Class C Notes to sanction a modification of, or any waiver or
authorisation of any breach, or proposed breach of, any of the provisions of
the Issuer Transaction Documents or the Conditions of such Notes shall take
effect unless it has been sanctioned by an Extraordinary Resolution of the
Class D Noteholders, in each case of each Series, or the Note Trustee is of
the opinion that it would not be materially prejudicial to the interests of
the Class D Noteholders of each Series.

                                      24
<PAGE>

(E)      Modifications and Determinations by Note Trustee

         The Note Trustee, may, without the consent of the Noteholders:

         (i)      agree to any modification of, or to the waiver or
                  authorisation of any breach or proposed breach of, the
                  Conditions of any Series and Class of Notes or any of the
                  Transaction Documents which is not in the opinion of the
                  Note Trustee, materially prejudicial to the interests of the
                  Noteholders of such Series and Class of Notes or of any
                  other Series and Class of Notes; or

         (ii)     determine that any Note Event of Default in respect of a
                  Series and Class of Notes shall not be treated as such
                  provided that, in any such case, it is not in the opinion of
                  the Note Trustee materially prejudicial to the interests of
                  the Noteholders of such Series and Class of Notes or of any
                  other Series and Class of Notes; or

         (iii)    agree to any modification of these Conditions or any of the
                  Transaction Documents which, in the opinion of the Note
                  Trustee, is of a formal, minor or technical nature or is to
                  correct a manifest error or an error established as such to
                  the satisfaction of the Note Trustee, or is to comply with
                  the mandatory provisions of law.

         Any such modification, waiver, authorisation or determination shall
be binding on the Noteholders and, unless the Note Trustee, agrees otherwise,
any such modification shall be notified to the Noteholders and the Rating
Agencies in accordance with Condition 14 as soon as practicable thereafter.

(F)      Redenomination

         The Note Trustee may agree, without the consent of the Holders of the
Sterling Notes on or after the Specified Date (as defined below), to such
modifications to the Sterling Notes and the Issuer Trust Deed in respect of
redenomination of such Notes in euro and associated reconventioning,
renominalisation and related matters in respect of such Notes as may be
proposed by the Issuer (and confirmed by an independent financial institution
approved by the Note Trustee to be in conformity with then applicable market
conventions) and to provide for redemption at the euro equivalent of the
sterling principal amount of the Sterling Notes. For these purposes,
"Specified Date" means the date on which the United Kingdom participates in
the third stage of European economic and monetary union pursuant to the Treaty
establishing the European Community, as amended by the Treaty on European
Union, or otherwise participates in European economic and monetary union in a
manner with an effect similar to such third stage.

         Any such modification shall be binding on the Holders of the Sterling
Notes and, unless the Note Trustee agrees otherwise, any such modification
shall be notified to such Noteholders in accordance with Condition 14 as soon
as practicable thereafter.

(G)      Exercise of Note Trustee's Functions

         Where the Note Trustee is required, in connection with the exercise
of its powers, trusts, authorities, duties and discretions under these
Conditions or any other issuer Transaction Document, to have regard to the
interests of the Noteholders (of a Class, Series or Series and Class thereof),
it shall have regard to the interests of such Noteholders as a class and, in
particular but without prejudice to the generality of the foregoing, the Note
Trustee shall not have regard to, or be in any way liable for, the
consequences of such exercise for individual Noteholders resulting from their
being for any purpose domiciled or resident in, or otherwise connected with,
or subject to the jurisdiction of, any particular territory. In connection
with any such exercise, the Note Trustee shall not be entitled to require, and
no Noteholder shall be entitled to claim, from the Issuer or any other person,
any indemnification or payment in respect of any tax consequence of any such
exercise upon individual Noteholders.

                                      25
<PAGE>

12.      Indemnification of the Note Trustee and the Issuer Security Trustee

         The Transaction Documents contain provisions governing the
responsibility (and relief from responsibility) of the Note Trustee and the
Issuer Security Trustee and providing for their indemnification in certain
circumstances, including, among others, provisions relieving the Issuer
Security Trustee from taking enforcement proceedings or enforcing the Issuer
Security unless indemnified to its satisfaction. The Note Trustee and the
issuer Security Trustee are also entitled to be paid its costs and expenses in
priority to any interest payments to Noteholders.

         The Note Trustee and the Issuer Security Trustee and their related
companies are entitled to enter into business transactions with the Issuer,
the Issuer Cash Manager, Northern Rock plc and/or the related companies of any
of them and to act as note trustee or security trustee for the Holders of any
new Notes and/or any other person who is a party to any Transaction Document
or whose obligations are comprised in the Issuer Security and/or any of its
subsidiary or associated companies without accounting for any profit resulting
therefrom.

         The Note Trustee and the Issuer Security Trustee will not be
responsible for any loss, expense or liability which may be suffered as a
result of any assets comprised in the Issuer Security, or any deeds or
documents of title thereto, being uninsured or inadequately insured or being
held by clearing organisations or their operators or by intermediaries such as
banks, brokers or other similar persons on behalf of the Note Trustee or the
Issuer Security Trustee, as applicable.

         Furthermore, the Note Trustee and the Issuer Security Trustee will be
relieved of liability for making searches or other inquiries in relation to
the assets comprising the Issuer Security. The Note Trustee and the Issuer
Security Trustee do not have any responsibility in relation to the legality
and the enforceability of the trust arrangements and the related Issuer
Security. Neither the Note Trustee nor the Issuer Security Trustee will be
obliged to take any action which might result in its incurring personal
liabilities. Neither the Note Trustee nor the Issuer Security Trustee is
obliged to monitor or investigate the performance of any other person under
the Transaction Documents and is entitled to assume, until it has actual
knowledge to the contrary, that all such persons are properly performing their
duties, unless it receives express notice to the contrary.

         Neither the Note Trustee nor the Issuer Security Trustee will be
responsible for any deficiency which may arise because it is liable to tax in
respect of the proceeds of any Issuer Security.

13.      Replacement of Notes

         If Individual Note Certificates are lost, stolen, mutilated, defaced
or destroyed, the Noteholder can replace them at the Specified Office of any
Paying Agent subject to all applicable laws and stock exchange requirements.
The Noteholder will be required both to pay the expenses of producing a
replacement and to comply with the Issuer's, the Registrar's and the Paying
Agent's reasonable requests for evidence and indemnity.

         If a Global Note Certificate is lost, stolen, mutilated, defaced or
destroyed, the Issuer will deliver a replacement Global Note Certificate to
the registered holder upon receipt of satisfactory evidence and surrender of
any defaced or mutilated Global Note Certificate. A replacement will only be
made upon payment of the expenses for a replacement and compliance with the
Issuer's, Registrar's and Paying Agents' reasonable requests as to evidence
and indemnity.

         Defaced or mutilated Note Certificates must be surrendered before
replacements will be issued.

14.      Notice to Noteholders

(A)      Publication of Notice

         Any notice to Noteholders shall be validly given if such notice is:

                                      26
<PAGE>

         (i)      sent to them by first class mail (or its equivalent) or (if
                  posted to a non-UK address) by airmail at the respective
                  addresses on the Register; and

         (ii)     published in The Financial Times; and

         (iii)    for so long as amounts are outstanding on the US Notes, in a
                  daily newspaper of general circulation in New York (which is
                  expected to be The New York Times);

or, if any of such newspapers set out above shall cease to be published or
timely publication therein shall not be practicable, in a leading English
language daily newspaper having general circulation in the United Kingdom or
the United States (as applicable) provided that if, at any time, the Issuer
procures that the information concerned in such notice shall be published on
the Relevant Screen, publication in the newspapers set out above or such other
newspaper or newspapers shall not be required with respect to such
information.

(B)      Date of Publication

         Any notices so published shall be deemed to have been given on the
fourth day after the date of posting, or as the case may be, on the date of
such publication or, if published more than once on different dates, on the
first date on which publication shall have been made in the newspaper or
newspapers in which (or on the Relevant Screen on which) publication is
required.

(C)      Global Note Certificates

         While the Notes are represented by Global Note Certificates, any
notice to noteholders will be validly given if such notice is provided in
accordance with Condition 14(A) or (at the option of the Issuer) if delivered
to DTC (in the case of the US Notes) or Euroclear and/or Clearstream,
Luxembourg (in the case of the Reg S Notes). Any notice delivered to the DTC
and/or Euroclear and/or Clearstream, Luxembourg will be deemed to be given on
the day of delivery.

(D)      Note Trustee's Discretion to Select Alternative Method

         The Note Trustee shall be at liberty to sanction some other method of
giving notice to the Noteholders or any Series or Class or category of them
if, in its opinion, such other method is reasonable having regard to market
practice then prevailing and to the requirements of the stock exchanges on
which the Notes are then admitted for trading and provided that notice of such
other method is given to the Noteholders in such manner as the Note Trustee
shall require.

15.      Further Issues

         The Issuer shall be at liberty from time to time, without the consent
of the Noteholders, to create and issue further Notes of a certain Class
having terms and conditions the same as the Notes of any Series of the same
Class or the same in all respects save for the amount and date of the first
payment of interest thereon, issue date and/or purchase price and so that the
same shall be consolidated and form a single Series and Class with the
outstanding Notes of such Series and Class.

16.      Governing Law and Jurisdiction

         The Transaction Documents and the Notes are governed by English law
unless specifically stated to the contrary. Certain provisions in the
Transaction Documents relating to property situated in Scotland are governed
by Scots law. Unless specifically stated to the contrary:

         (i)      the courts of England are to have non-exclusive jurisdiction
                  to settle any disputes which may arise out of or in
                  connection with the Notes and the Transaction Documents; and

                                      27
<PAGE>

         (ii)     the Issuer and the other parties to the Transaction
                  Documents irrevocably submit to the non-exclusive
                  jurisdiction of the courts of England.

17.               Contracts (Rights of Third Parties) Act 1999

         No person shall have any right to enforce any term or condition of
the Notes under the Contracts (Rights of Third Parties) Act 1999, but this
shall not affect any right or remedy of a third party which exists or is
available apart from that Act.

18.      Definitions

         Unless otherwise defined in these Conditions or unless the context
otherwise requires, in these Conditions the following words shall have the
following meanings and any other capitalised terms used in these Conditions
shall have the meanings ascribed to them or incorporated in the Issuer Trust
Deed or the Issuer Master Definitions Schedule. The provisions of Clause 2
(Interpretation and Construction) of the Issuer Master Definitions Schedule
are incorporated into and shall apply to these Conditions.

         "A Loan Tranches" means the Loan Tranches made by the Issuer to
Funding 2 under the Global Intercompany Loan Agreement from the proceeds of
issue of the Class M Notes of any Series;

         "AA Loan Tranches" means the Loan Tranches made by the Issuer to
Funding 2 under the Global Intercompany Loan Agreement from the proceeds of
issue of the Class B Notes of any Series;

         "AAA Loan Tranches" means the Loan Tranches made by the Issuer to
Funding 2 under the Global Intercompany Loan Agreement from the proceeds of
issue of the Class A Notes of any Series;

         "AAA Principal Deficiency Sub-Ledger" means the sub-ledger to the
Principal Deficiency Ledger which specifically records any principal in
respect of the AAA Loan Tranches;

         "Accrual Yield" means, in respect of any Series and Class of Notes,
the yield specified as such for such Notes in the applicable Final Terms;

         "Additional Business Centre" means, in respect of any Series and
Class of Notes, each place specified as such for such Notes in the applicable
Final Terms;

         "Agents" means the Paying Agents, the Transfer Agent, the Registrar
and the Agent Bank;

         "Agent Bank" means Citibank, N.A. in its capacity as agent bank at
its Specified Office or such other person for the time being acting as agent
bank under the Issuer Paying Agent and Agent Bank Agreement;

         "Authorised Holding" means, in respect of the US Notes, $100,000 and
integral multiples of $1,000 in excess thereof or, in relation to a Series and
Class of Notes, as otherwise specified in the applicable Final Terms;

         "Authorised Investments" means (i) Sterling gilt-edged investments
and (ii) Sterling demand or time deposits, certificates of deposit and
short-term debt obligations (including commercial paper) (which may include
deposits in any account which earns a rate of interest related to LIBOR)
provided that in all cases such investments have a maturity date of 90 days or
less and mature on or before the next following Note Payment Date and the
short-term unsecured, unguaranteed and unsubordinated debt obligations of the
issuing or guaranteeing entity or entity with which the demand or time
deposits are made (being an authorised institution under the Financial
Services and Markets Act 2000) are rated at least "A-1+" by Standard & Poor's,
"F1+" by Fitch and "P-1" by Moody's or which are otherwise acceptable to the
Rating Agencies (if they are notified in advance) to maintain the then current
ratings of the Notes;

                                      28
<PAGE>

         "Base Prospectus" means the base prospectus of the Issuer from time
to time, the first being the base prospectus dated 26 August, 2005:

         "Basic Terms Modification" means, in respect of any Series and Class
of Notes any modification which would have the effect of:

         (a)      reducing or cancelling of the amount payable or, where
                  applicable, modifying, except where such modification is, in
                  the opinion of the Note Trustee, bound to result in an
                  increase, the method of calculating the amount payable or
                  modifying the date of payment or, where applicable, altering
                  the method of calculating the date of payment in respect of
                  any principal or interest in respect of such Notes;

         (b)      altering the currency in which payments under such Notes are
                  to be made;

         (c)      altering the quorum or majority required to pass an
                  Extraordinary Resolution;

         (d)      altering the priority in which payments are made to the
                  noteholders of such Notes pursuant to any Issuer Priority of
                  Payments (except in a manner determined by the Note Trustee
                  not to be materially prejudicial to the interests of the
                  Noteholders of such Notes);

         "BB Loan Tranche" means the Loan Tranches made by the Issuer to
Funding 2 under the Global Intercompany Loan Agreement from the proceeds of
issue of the Class D Notes of any Series;

         "BBB Loan Tranches" means the Loan Tranches made by the Issuer to
Funding 2 under the Global Intercompany Loan Agreement from the proceeds of
issue of the Class C Notes of any Series;

         "Broken Amount" means, in respect of any Series and Class of Notes,
the amount specified as such (if any) for such Notes in the applicable Final
Terms;

         "Business Day" means a day which is:

         (a)      a day on which commercial banks and foreign exchange markets
                  settle payments and are open for general business (including
                  dealing in foreign exchange and foreign currency deposits)
                  in London and any Additional Business Centre specified in
                  the applicable Final Terms; and

         (b)      in the case of any sum payable, either (1) in relation to
                  any sum payable in a Specified Currency other than euro, a
                  day on which commercial banks and foreign exchange markets
                  settle payments and are open for general business (including
                  dealing in foreign exchange and foreign currency deposits)
                  in the principal financial centre of the country of the
                  relevant Specified Currency (if other than London and any
                  Additional Business Centre) and which if the Specified
                  Currency is Australian dollars or New Zealand dollars shall
                  be Sydney and Auckland, respectively or (2) in relation to
                  any Notes denominated or payable in euro, a day on which the
                  Trans-European Automated RealTime Gross Settlement Express
                  Transfer (TARGET) System (the "TARGET System") is open;
                  "Cash Management Agreement" means the cash management
                  agreement dated 26 March, 2001, among, amongst others, the
                  Cash Manager, the Mortgages Trustee, Funding 2 and the
                  Funding 2 Security Trustee;

         "Cash Manager" means Northern Rock or such other person or persons
for the time being acting, under the cash management agreement, as agent,
inter alia, for the Mortgages Trustee, Funding 2 and (following enforcement of
the Funding 2 Security) the Funding 2 Security Trustee for the purposes of,
inter alia, managing all cash transactions and maintaining certain ledgers on
behalf of the Mortgages Trustee, Funding and (following enforcement of the
Funding 2 Security) the Funding 2 Security Trustee;

         "Class" or "class" means, in relation to the Notes or the
Noteholders, the Class A Notes, the Class B Notes, the Class M Notes, the
Class C Notes or the Class D Notes, as the context requires;

                                      29
<PAGE>

         "Class A Noteholders" means the Holders of the Class A Notes;

         "Class A Notes" means Notes of any Series designated as such in the
         applicable Final Terms;

         "Class B Noteholders" means the Holders of the Class B Notes;

         "Class B Notes" means Notes of any Series designated as such in the
         applicable Final Terms;

         "Class C Noteholders" means the Holders of the Class C Notes;

         "Class C Notes" means Notes of any Series designated as such in the
         applicable Final Terms;

         "Class D Noteholders" means the Holders of the Class D Notes;

         "Class D Notes" means Notes of any Series designated as such in the
         applicable Final Terms;

         "Class M Noteholders" means the Holders of the Class M Notes;

         "Class M Notes" means Notes of any Series designated as such in the
         applicable Final Terms;

         "Clearstream, Luxembourg" means Clearstream Banking, societe anonyme;

         "Closing Date" means the date on which the Issuer issues a Series of
         Notes to the Noteholders;

         "Commercial Business Day" has the meaning indicated in Condition 1(D);

         "Current Seller Share" means the amount of trust property
beneficially owned by the Seller from time to time;

         "Designated Account" means the account (which, in the case of a
payment in Japanese Yen to a non-resident of Japan, shall be a non-resident
account) maintained by a holder with a Designated Bank and identified as such
in the Register;

         "Designated Bank" means (in the case of payment in a Specified
Currency other than euro) a bank in the principal financial centre of the
country of such Specified Currency (which, if the Specified Currency is
Australian dollars or New Zealand dollars, shall be Sydney and Auckland,
respectively) and (in the case of a payment in euro) any bank which processes
payments in euro;

         "Determination Period" means each period from (and including) a
Determination Date to (but excluding) the next Determination Date (including,
where either the Interest Commencement Date or the applicable final Note
Payment Date is not a Determination Date, the period commencing on the first
Determination Date prior to, and ending on the first Determination Date
falling after, such date);

         "Determination Date" means, in respect of any Series and Class of
Notes, the date(s) specified as such for such Notes in the Final Terms;

         "Distribution Date" means the date on which the mortgages trust
terminates and the London Business Day determined by the Cash Manager falling
no later than 6 business days after each Trust Determination Date;

         "Dollars", "US$", "US Dollars" or "$" means the lawful currency for
the time being of the United States of America;

         "EURIBOR" means the Euro-zone inter-bank offered rate;

         "Euro", "euro" or "(euro)" means the currency of the member states of
the European Union that adopt the single currency in accordance with the
Treaty of Rome of 25 March 1957, establishing the European Community, as
amended from time to time;

         "Euroclear" means Euroclear Bank S.A./N.V., as operator of the
         Euroclear System;

         "Extraordinary Resolution" means (a) a resolution passed at a meeting
of the Noteholders of a particular Class, Series or Series and Class duly
convened and held in

                                      30
<PAGE>

accordance with the provisions of the Issuer Trust Deed by a majority
consisting of not less than three-fourths of the persons voting thereat upon a
show of hands or if a poll is duly demanded by a majority consisting of not
less than three-fourths of the votes cast on such poll or (b) a resolution in
writing signed by or on behalf of all the Noteholders of a particular Class,
Series or Series and Class, which resolution in writing may be contained in
one document or in several documents in like form each signed by or on behalf
of one or more of the Noteholders of such Class, Series or Series and Class
(as the case may be);

         "Final Maturity Date" means, in respect of any Series and Class of
Notes, the date specified as such for such Notes in the applicable Final
Terms;

         "Final Terms" means, in relation to any Series of Notes, the final
terms issued in relation to such Series of Notes as a supplement to these
Conditions (being, in the case of a Series of Notes issued prior to 1st July,
2005, in the form of a pricing supplement) and giving details of, inter alia,
the amount and price of such Series of Notes and which forms a part of the
Base Prospectus in relation to such Series of Notes;

         "Fixed Interest Period" or "Interest Period" means, in respect of a
Series and Class of Notes, the period from (and including) a Note Payment Date
for such Notes (or the Interest Commencement Date) to (but excluding) the next
(or first) Note Payment Date for such Notes.

         "Fixed Coupon Amount" means, in respect of any Series and Class of
Notes, the amount specified as such (if any) for such Notes in the applicable
Final Terms;

         "Funding 2" means Granite Finance Funding 2 Limited;

         "Funding 2 Deed of Charge" means the deed of charge entered into on
or about the Initial Closing Date, as amended and restated from time to time,
between, among others, Funding 2, the Funding 2 Security Trustee, the Issuer
and the Note Trustee and each deed of accession or supplement entered into in
connection therewith;

         "Funding 2 Program Date" or "Funding 2 Programme Date" means on or
about 19 January, 2005;

         "Funding 2 Security" means the mortgages, charges, assignments,
pledges and other security created by Funding 2 under or pursuant to the
Funding 2 Deed of Charge in favour of the Funding 2 Security Trustee for the
benefit of the secured creditors of Funding 2 as described under the Funding 2
Deed of Charge;

         "Funding 2 Security Trustee" means The Bank of New York and its
successors or any other security trustee under the Funding 2 Deed of Charge);

         "Global Intercompany Loan" means, at any time, the aggregate of all
Loan Tranches advanced under the Global Intercompany Loan Agreement;

         "Global Intercompany Loan Agreement" means the loan agreement entered
into on or about the Funding 2 Programme Date between, among others, Funding
2, the Issuer and the Funding 2 Security Trustee;

         "Global Note Certificates" means the US Global Note Certificates and
the Reg S Global Note Certificates;

         "Holder" has the meaning indicated in Condition 1(B);

         "Individual Note Certificates" means the note certificates
representing the Notes while in definitive form;

         "Interest Commencement Date" means, in respect of any Series and
Class of Notes, the Closing Date of such Notes or such other date as may be
specified as such for such Notes in the applicable Final Terms;

         "Interest Determination Date" means, in respect of any Series and
Class of Notes, the date(s) specified as such (if any) for such Notes in the
applicable Final Terms;

                                      31
<PAGE>

         "ISDA Definitions" means the 2000 ISDA Definitions, as published by
the International Swaps and Derivatives Association, Inc. and as amended and
updated as at the Closing Date of the first Series of Notes;

         "Issuer" means Granite Master Issuer plc;

         "Issuer Account Bank" means Citibank, N.A., situated at 5 Carmelite
Street, London EC4Y 0PA or such other person for the time being acting as
account bank to the Issuer under the Issuer Bank Account Agreement;

         "Issuer Available Principal Receipts" means:

         (a)      prior to enforcement of the Issuer Security, for the Issuer
                  in respect of any Monthly Payment Date, an amount calculated
                  by the Issuer Cash Manager on the Distribution Date
                  immediately preceding that Monthly Payment Date equal to the
                  sum:

                  (i)      of all principal receipts to be repaid by Funding 2
                           to the issuer under the Global Intercompany Loan
                           Agreement or that Monthly Payment Date; and

                  (ii)     in so far as needed to make an Issuer Reserve
                           Principal Payment, any amount available to be drawn
                           under the Issuer Reserve Fund less any amounts to
                           be applied on the relevant Monthly Payment Date in
                           payment of interest or expenses under the Issuer
                           Pre-Enforcement Revenue Priority of Payments, plus
                           any amounts to be credited to the Issuer Reserve
                           Ledger under the Issuer Pre-Enforcement Principal
                           Priority of payments on the relevant Monthly
                           Payment Date.

         (b)      following enforcement of the Issuer Security, for the Issuer
                  in respect of any Monthly Payment Date the sum calculated by
                  or on behalf of the Issuer Security Trustee on the
                  Distribution Date immediately preceding such Monthly Payment
                  Date as the amount to be repaid by Funding 2 to the Issuer
                  under the Global Intercompany Loan Agreement during the
                  relevant Interest Period and/or the sum otherwise recovered
                  by the Issuer Security Trustee (or the receiver appointed on
                  its behalf) representing the Principal Amount Outstanding of
                  the Notes;

         "Issuer Available Revenue Receipts" means for the Issuer in respect
of any Monthly Payment Date an amount calculated by the Issuer Cash Manager on
the Distribution Date immediately preceding such Monthly Payment Date equal to
the sum of:

         (a)      interest, fees and any other amount (excluding principal)
                  paid by Funding 2 on the relevant Monthly Payment Date in
                  respect of the Global Intercompany Loan;

         (b)      amounts received by the Issuer under or in accordance with
                  the Issuer Swap Agreements (excluding Swap Collateral
                  standing to the credit of the Issuer Swap Collateral
                  Accounts) and any early termination amounts (other than such
                  early termination amounts applied or to be applied by the
                  Issuer in the purchase of one or more replacement hedge
                  transactions) received by the Issuer under the Issuer Swap
                  Agreements;

         (c)      interest payable on the Issuer Bank Accounts and any income
                  from Authorised Investments made with funds standing to the
                  credit of the Issuer Bank Accounts in each case which has
                  been or will be received on or before the relevant Monthly
                  Payment Date; and

         (d)      the amounts available to be drawn under the Issuer Reserve
                  Fund, subject to any limits or conditions or the purposes
                  for which the Issuer Reserve Funding may be utilised;

         "Issuer Bank Accounts" means the Issuer Transaction Account and also
includes any additional or replacement bank account opened in the name of the
Issuer from time to time with the prior written consent of the Issuer Security
Trustee and the Rating Agencies;

                                      32
<PAGE>

         "Issuer Bank Account Agreement" means the bank account agreement
entered into on or about the Funding 2 Programme Date between the Issuer, the
issuer Cash Manager, the Issuer Account Bank and the Issuer Security Trustee;

         "Issuer Cash Management Agreement" means the cash management
agreement entered into on or about the Funding 2 Programme Date among the
Issuer Cash Manager, the Issuer and the Issuer Security Trustee;

         "Issuer Corporate Services Agreement" means the corporate services
agreement entered into on or about the Funding 2 Programme Date between, among
others, the Issuer Corporate Services Provider, Holdings, the Post Enforcement
Call Option Holder and the Issuer, for the provision by the Issuer Corporate
Services Provider of certain corporate services;

         "Issuer Corporate Services Provider" means Law Debenture Corporate
Services Limited or such other person for the time being acting as corporate
services provider to the Issuer under the Issuer Corporate Services Agreement;

         "Issuer Deed of Charge" means the deed of charge entered into on or
about the Funding 2 Program Date, as amended and restated from time to time,
between, among others, the Issuer and the Issuer Security Trustee and each
deed of accession or supplement entered into in connection therewith;

         "Issuer Enforcement Notice" has the meaning indicated in Condition
10(A);

         "Issuer Master Definitions Schedule" means the master definitions
schedule in connection with the Issuer dated on or about the Funding 2 Program
Date setting out, among other things, definitions which apply to certain
Transaction Documents;

         "Issuer Paying Agent and Agent Bank Agreement" means the paying agent
and agent bank agreement entered into on or about the Funding 2 Program Date
between the Issuer, the Principal Paying Agent, the Paying Agents, the
Transfer Agent, the Registrar, the Agent Bank, the Issuer Security Trustee and
the Note Trustee;

         "Issuer Post-Enforcement Call Option Agreement" means the post
enforcement call option agreement entered into on or about the Funding 2
Program Date between the Issuer, the Post Enforcement Call Option Holder and
the Note Trustee;

         "issuer Post-Enforcement Priority of Payments" means the provisions
and the order of priority of payments in which all Issuer Available Revenue
Receipts, Issuer Available Principal Receipts and all other monies, income,
receipts and recoveries received by or on behalf of the Issuer or the Issuer
Security Trustee or any receiver of the Issuer and the proceeds of enforcement
of the Issuer Security are to be applied following an enforcement of the
issuer Security as set out in a schedule to the Issuer Deed of Charge, as the
same may be amended, varied or superseded from time to time in accordance with
the terms of the Issuer Deed of Charge;

         "Issuer Pre-Enforcement Principal Priority of Payments" means the
provisions and the order of priority of payments in which the Issuer Available
Principal Receipts will be applied until enforcement of the Issuer Security as
set out in a schedule to the Issuer Cash Management Agreement;

         "Issuer Pre-Enforcement Revenue Priority of Payments" means the
provisions and the order of priority of payments in which the Issuer Available
Revenue Receipts will be applied until enforcement of the Issuer Security and
as set out in a schedule to the Issuer Cash Management Agreement;

         "Issuer Secured Creditors" means the Issuer Security Trustee (and any
receiver appointed under the Issuer Deed of Charge), the Note Trustee, the
Issuer Swap Providers, any Start-Up Loan Provider, the Issuer Corporate
Services Provider, the Issuer Account Bank, the Issuer Cash Manager, the
Paying Agents, the Agent Bank, the Transfer Agent, the Registrar and the
Noteholders and any new Issuer Secured Creditor who accedes to the Issuer Deed
of Charge from time to time under a Deed of Accession or a supplemental deed;

                                      33
<PAGE>

         "Issuer Security" means the security created by the Issuer pursuant
to the Issuer Deed of Charge;

         "Issuer Security Trustee" means The Bank of New York and its
successors or any further or other security trustee under the Issuer Deed of
Charge, as trustee for the Issuer Secured Creditors;

         "Issuer Swap Agreements" means the ISDA master agreements, schedules
thereto and confirmations thereunder relating to the currency and/or interest
rate swaps to be entered into on or about each Closing Date, and any credit
support annexes or other credit support documents entered into at any time, as
amended from time to time, among the Issuer and the applicable Issuer Swap
Provider and/or any credit support provider and includes any additional and/or
replacement Issuer Swap Agreement entered into by the Issuer from time to time
in connection with the Notes;

         "Issuer Swap Collateral" means any asset (including, without
limitation, cash and/or securities) paid or transferred to the Issuer by an
Issuer Swap Provider in accordance with the terms of the relevant Issuer Swap
Agreement as collateral to secure the performance of that Issuer Swap
Provider's obligations under the relevant Issuer Swap Agreement together with
any income or distributions received in respect of such asset (if the Issuer
is entitled to retain the same) and any equivalent of or replacement of such
asset into which such asset is transformed;

         "Issuer Swap Collateral Accounts" means the Issuer Swap Collateral
Cash Account and the Issuer Swap Collateral Securities Account;

         "Issuer Swap Collateral Ancillary Document" means any document
(including, without limitation, any custodial agreement or bank account
agreement but excluding the Issuer Swap Agreements, the Issuer Cash Management
Agreement and the Issuer Deed of Charge) as may be entered into by the Issuer
from time to time in connection with the Issuer Swap Collateral;

         "Issuer Swap Collateral Cash Account" means an account opened in the
name of the Issuer for the purpose of holding Swap Collateral in cash and
maintained in accordance with the terms of the Issuer Cash Management
Agreement;

         "Issuer Swap Collateral Securities Account" means a securities
account opened in the name of the Issuer for the purpose of holding Swap
Collateral in the form of securities and maintained in accordance with the
terms of the Issuer Cash Management Agreement;

         "Issuer Swap Providers" means the institutions identified in respect
of each Issuer Swap Agreement in the Final Terms related to the relevant
Series and Class of Notes;

         "Issuer Transaction Account" means the day to day bank accounts of
the Issuer, held with the Issuer Account Bank as at the Funding 2 Program Date
or that may be opened, with the prior approval of the Issuer Security Trustee,
after the Closing Date;

         "Issuer Trust Deed" means the trust deed entered into on or about the
Funding 2 Program Date as amended and restated from time to time between the
Issuer and the Note Trustee, and each supplemental deed entered into in
connection therewith;

         "LIBOR" means the London inter-bank offered rate;

         "Listed Notes" means each Series and Class of Notes which is admitted
to the official list maintained by the UK Listing Authority and admitted to
trading on the London Stock Exchange's Gilt Edged and Fixed Interest Market;

         "Loan Payment Date" means, in respect of a Loan Tranche, the Monthly
Payment Date(s) specified in the Loan Tranche Supplement for the payment of
interest and/or principal subject to the terms of the Global Intercompany Loan
Agreement;

         "Loan Tranches" means the AAA Loan Tranches, the AA Loan Tranches,
the A Loan Tranches, the BBB Loan Tranches and the BB Loan Tranches, being the
advances made by the Issuer to Funding 2, pursuant to the Global Intercompany
Loan Agreement,

                                      34
<PAGE>

         "Payment Business Day" means a day which is:

         (a)      a day on which a day on which commercial banks and foreign
                  exchange markets settle payments and are open for general
                  business (including dealing in foreign exchange and foreign
                  currency deposits) in:

                  (i)      the relevant place of presentation;

                  (ii)     London;

                  (iii)    any Additional Financial Centre specified in the
                           applicable Final Terms; and

         (b)      either (1) in relation to any sum payable in a Specified
                  Currency other than euro, a day on which commercial banks
                  and foreign exchange markets settle payments and are open
                  for general business (including dealing in foreign exchange
                  and foreign currency deposits) in the principal financial
                  centre of the country of the relevant Specified Currency (if
                  other than London and any Additional Business Centre) and
                  which if the Specified Currency is Australian dollars or New
                  Zealand dollars shall be Sydney and Auckland, respectively
                  or (2) in relation to any Notes denominated or payable in
                  euro, a day on which the Trans-European Automated RealTime
                  Gross Settlement Express Transfer (TARGET) System is open;
                  and

         (c)      in the case of any payment in respect of a Global Note
                  Certificate denominated in a Specified Currency other than
                  US dollars and registered in the name of DTC or its nominee
                  and in respect of which an accountholder of DTC (with an
                  interest in such Global Note) has elected to receive any
                  part of such payment in US dollar, a day on which commercial
                  banks are not authorised or required by law or regulation to
                  be closed in New York;

         "Post Enforcement Call Option Holder" means GPCH Limited;

         "Principal Amount Outstanding" has the meaning indicated in Condition
5(C);

         "Principal Paying Agent" means Citibank, N.A., 5 Carmelite Street,
London EC4Y DPA in its capacity as principal paying agent at its Specified
Office or such other person for the time being acting as principal paying
agent under the Issuer Paying Agent and Agent Bank Agreement;

         "Rate of Interest" and "Rates of Interest" means, in respect of any
Series and Class of Notes, the rate or rates (expressed as a percentage per
annum) on interest payable in respect of such Notes specified in the
applicable Final Terms or calculated and determined in accordance with the
applicable Final Terms;

         "Rating Agencies" means Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies Inc., Moody's Investors Service Limited and Fitch
Ratings Ltd.;

         "Reference Price" means, in respect of any Series and Class of Notes,
the price specified as such for such Notes in the applicable Final Terms;

         "Reference Rate" means, in respect of any Series and Class of Notes,
the rate specified as such for such Notes in the applicable Final Terms;

         "Reg S" means Regulation S under the United States Securities Act of
1933, as amended;

         "Reg S Notes" means each Series and Class of Listed Notes that are
not US Notes;

         "Reg S Global Note Certificates" means the note certificates
representing the Reg S Notes while in global form;

         "Register" means the register of Noteholders kept by the Registrar
and which records the identity of each Noteholder and the number of Notes that
each Noteholder owns;

         "Registrar" means Citibank, N.A. in its capacity as registrar at its
Specified Office or such other person for the time being acting as registrar
under the Issuer Paying Agent and Agent Bank Agreement;

                                      35
<PAGE>

         "Relevant Screen" means a page of the Reuters service or Bloomberg
service, or any other medium for electronic display of data as may be
previously approved in writing by the Note Trustee and has been notified to
Noteholders in the manner set out in Condition 14;

         "Relevant Screen Page" means, in respect of any Series and Class of
Notes, the screen page specified as such for such Notes in the applicable
Final Terms;

         "Security Interest" means any mortgage or sub-mortgage, standard
security, charge or sub-charge (whether legal or equitable), encumbrance,
pledge, lien, hypothecation, assignment by way of security or other security
interest or title retention arrangement and any agreement, trust or
arrangement having substantially the same economic or financial effect as any
of the foregoing (other than a lien arising in the ordinary course of business
or by operation of law);

         "Seller Share" means the Current Seller Share of the trust property
calculated as set forth in the Mortgages Trust Deed;

         "Seller Share Event" means an event that will occur if, on a
Distribution Date, (i) the result of the calculation of the Current Seller
Share on that Distribution Date would be equal to or less than the Minimum
Seller Share for such Distribution Date (determined using the amounts of the
Current Seller Share and Minimum Seller Share that would exist after making
the distributions of mortgages trustee principal receipts due on that
Distribution Date on the basis that the Cash Manager assumes that those
mortgages trustee principal receipts are distributed in the manner described
in the Mortgages Trust Deed, and (ii) a Seller Share Event has not occurred on
the immediately preceding Distribution Date;

         "Seller Share Event Distribution Date" means a Distribution Date on
which a Seller Share Event occurs;

         "Series" means, subject to Condition 15, in relation to the Notes,
all Notes (of any Class) issued on a given day;

         "Series and Class" means, a particular Class of Notes of a given
Series or, where such Class of such Series comprises more than one sub-class,
"Series and Class" means a particular sub-class of such Class;

         "Specified Currency" means, in respect of any Series and Class of
Notes, the currency or currencies specified as such for such Notes in the
applicable Final Terms;

         "Specified Currency Exchange Rate" means, in relation to a Series and
Class of Notes, the exchange rate specified in the Issuer Swap Agreement
relating to such Series and Class of Notes or, if the Issuer Swap Agreement
has been terminated, the applicable spot rate;

         "Specified Date" has the meaning indicated in Condition 11(F);

         "Specified Denomination" means, in respect of any Series and Class of
Notes, the denomination specified as such for such Notes in the applicable
Final Terms which shall, in respect of Notes issued on or after 1 July 2005,
be (euro)50,000 or more (or its equivalent in any other currency at the date
of issue of such Notes);

         "Specified Office" means, as the context may require, in relation to
any of the Agents, the office specified against the name of such Agent in the
Issuer Paying Agent and Agent Bank Agreement or such other specified notice as
may be notified to the Issuer and the Note Trustee pursuant to the Issuer
Paying Agent and Agency Bank Agreement;

         "Specified Period" means, in respect of any Series and Class of
Notes, the period expressed as the Specified Period for such Notes in the
applicable Final Terms;

         "Sterling", "Pounds Sterling" or "(pound)" means the lawful currency
for the time being of the United Kingdom of Great Britain and Northern
Ireland;

         "Sterling Notes" means each Series and Class of Notes denominated in
Sterling;

                                      36
<PAGE>

         "sub-unit" means, with respect to any currency other than Sterling,
the lowest amount of such currency that is available as legal tender in the
country of such currency and, with respect to Sterling, one pence.

         "Transaction Documents" means the Issuer Corporate Services
Agreement, the Global Intercompany Loan Agreement, the Funding 2 Deed of
Charge, the Issuer Bank Account Agreement, the Issuer Deed of Charge, the
Issuer Trust Deed, the Issuer Paying Agent and Agent Bank Agreement, the
Issuer Cash Management Agreement, the Issuer Post-Enforcement Call Option
Agreement, the Issuer Swap Agreements, any Issuer Swap Collateral Ancillary
Document, the Issuer Master Definitions Schedule, the Mortgages Trustee
Guaranteed Investment Contract, the Funding 2 Guaranteed Investment Contract
and such other related documents which are referred to in the terms of the
above documents;

         "Transfer Agent" means Citibank, N.A. in its capacity as transfer
agent at its Specified Office or such other person for the time being acting
as transfer agent under the Issuer Paying Agent and Agent Bank Agreement;

         "Trust Determination Date" means the first day (or, if not a London
Business Day, the next succeeding London Business Day) of each calendar month;

         "UK Listing Authority" means the Financial Services Authority in its
capacity as competent authority for the purposes of Part VI of the Financial
Services and Markets Act 2000, as amended;

         "US Global Note Certificates" means the note certificates
representing the US Notes while in global form;

         "US Notes" means each Series and Class of Listed Notes which is
registered with the United States Securities and Exchange Commission under the
United States Securities Act of 1933, as amended;

         "US Paying Agent" means Citibank, N.A., acting in its capacity as US
paying agent through its New York office or such other person for the time
being acting as US paying agent under the Issuer Paying Agent and Agent Bank
Agreement;

         "US Prospectus" means, in relation to the US Notes, the US prospectus
of the Issuer from time to time, the first being the US prospectus dated 21
January 2005;

         "US Prospectus Supplement" means, in relation to any Series of US
Notes, the prospectus supplement issued in relation to such Series of US Notes
as a supplement to the US prospectus and giving details of such Series of US
Notes.

                                      37Exhibit 4.7

                             Dated 19 January 2005

                           GRANITE MASTER ISSUER PLC

                                CITIBANK, N.A.
                      (acting through its London Office)
                          as Principal Paying Agent,
                   Agent Bank, Registrar and Transfer Agent

                                CITIBANK, N.A.
                     (acting through its New York Office)
                              as US Paying Agent

                                    - and -

                             THE BANK OF NEW YORK
                      (acting through its London Office)
                  as Note Trustee and Issuer Security Trustee

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

                 ISSUER PAYING AGENT AND AGENT BANK AGREEMENT
          (as amended by a Deed of Amendment dated 25 January, 2006)

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

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937
                            REF:30507-30090/883285

<PAGE>

                                   CONTENTS

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

2.    Appointment of the Agents............................................2

3.    The Issuer Notes; Authentication.....................................2

4.    Duties of Agents.....................................................4

5.    Exchanges of Global Note Certificates and Delivery of Individual
      Note Certificates....................................................7

6.    Replacement Note Certificates........................................8

7.    Payments to the Paying Agents........................................9

8.    Payments to Noteholders.............................................10

9.    Transfers of Issuer Notes...........................................13

10.   Miscellaneous Duties of the Agents..................................15

11.   Agents to act for Note Trustee......................................18

12.   Fees and Expenses...................................................19

13.   Terms of Appointment................................................20

14.   No Liability for Consequential Loss.................................21

15.   Termination of Appointment..........................................22

16.   Non-Petition and Limited Recourse...................................25

17.   Notices.............................................................26

18.   Third Party Rights..................................................27

19.   Time of the Essence.................................................27

20.   Variation and Waiver................................................27

21.   Execution in Counterparts; Severability.............................27

22.   Governing Law and Jurisdiction; Process Agent; Appropriate Forum....27

23.   Exclusion of Liability..............................................28

SCHEDULE 1 SPECIFIED OFFICES OF THE AGENTS................................29
SCHEDULE 2 REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND
            REGISTRATION OF THE ISSUER NOTES..............................30

                                      i
<PAGE>

SCHEDULE 3 FORM OF CALCULATION AGENCY AGREEMENT...........................35

                                      ii
<PAGE>

THIS AGREEMENT is made on 19 January 2005

BETWEEN:

(1)   GRANITE MASTER ISSUER PLC (registered number 5250668), a public limited
      company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as
      Master Issuer;

(2)   CITIBANK, N.A., acting through its office at Citigroup Centre, Canada
      Square, Canary Wharf, London E14 5LB in its capacity as (1) Principal
      Paying Agent (2) Agent Bank (3) Registrar and (4) Transfer Agent;

(3)   CITIBANK, N.A., acting through its office at Agency and Trust, 14th
      Floor, 388 Greenwich Street, New York, N.Y. 10013, U.S.A. in its
      capacity as US Paying Agent; and

(4)   THE BANK OF NEW YORK, acting through its office at 48th Floor, One
      Canada Square, London E14 5AL in its capacity as (1) Note Trustee and
      (2) Issuer Security Trustee.

WHEREAS:

By a resolution of a duly authorised Board of Directors of the Master Issuer
passed on 18 January 2005, the Master Issuer resolved to establish a programme
pursuant to which the Master Issuer may, from time to time, issue Issuer Notes
constituted by the Issuer Trust Deed and secured by the Issuer Deed of Charge.

IT IS AGREED as follows:

1.    Definitions and Interpretation

1.1   The provisions of:

(a)   the Programme Master Definitions Schedule signed for the purposes of
      identification by Sidley Austin Brown & Wood and Allen & Overy LLP on 19
      January 2005, and

(b)   the Issuer Master Definitions Schedule signed for the purposes of
      identification by Sidley Austin Brown & Wood and Allen & Overy LLP on 19
      January 2005,

      (as the same have been and may be amended, varied or supplemented from
      time to time with the consent of the parties hereto) are expressly and
      specifically incorporated into and shall apply to this Agreement.

      The Issuer Master Definitions Schedule specified above shall prevail to
      the extent that it conflicts with the Programme Master Definitions
      Schedule.

1.2   Where the context permits, references in this agreement to an "Issuer
      Note" shall mean, while any Series and Class of Issuer Notes are
      represented by a Global Note Certificate, such Global Note Certificate,
      and while any Series and Class of Issuer Notes are represented by one or
      more Individual Note Certificates, such Individual

                                      1
<PAGE>

      Note Certificates.

1.3   Where the context permits, references in this agreement to the "Holder"
      of an Issuer Note means the person in whose name such Issuer Note is for
      the time being registered in the Register (or, in the case of a joint
      holding, the first named thereof) and "Noteholder" shall be construed
      accordingly.

2.    Appointment of the Agents

2.1   Appointment: Upon and subject to the terms of this Agreement, the Master
      Issuer and, for the purposes of Clause 11 (Agents to act for Note
      Trustee) only, the Note Trustee hereby appoint, for the purposes
      specified in, and to carry out their respective duties under, this
      Agreement and under the Issuer Conditions on a several but not joint
      basis:

      (a)   the Principal Paying Agent acting through its Specified Office as
            principal paying agent in respect of the Reg S Notes;

      (b)   the US Paying Agent acting through its Specified Office as paying
            agent in the United States in respect of the US Notes;

      (c)   the Agent Bank acting through its Specified Office as agent bank
            for the purpose of determining interest payable in respect of the
            Issuer Notes;

      (d)   the Registrar acting through its Specified Office as registrar for
            the Issuer Notes; and

      (e)   the Transfer Agent acting through its Specified Office as transfer
            agent for the Issuer Notes.

2.2   Obligations of Agents: The obligations of the Agents under this
      Agreement shall be several and not joint.

2.3   Acceptance of appointment by Paying Agents and Agent Bank: Each of the
      Principal Paying Agent, the US Paying Agent and the Agent Bank accepts
      its appointment as agent of the Master Issuer and, for the purpose of
      Clause 11 (Agents to act for Note Trustee) only, the Note Trustee in
      relation to the Issuer Notes and agrees to comply with the provisions of
      this Agreement and to perform its duties under the Issuer Conditions.

2.4   Acceptance of appointment by Registrar and Transfer Agent: Each of the
      Registrar and the Transfer Agent accepts its appointment as agent of the
      Master Issuer and, for the purpose of Clause 11 (Agents to act for Note
      Trustee) only, the Note Trustee in relation to the Issuer Notes and
      agrees to comply with the provisions of this Agreement and to perform
      its duties under the Issuer Conditions.

3.    The Issuer Notes; Authentication

3.1   Global Note Certificates: The US Notes will be either (i) registered
      under the Securities Act, or (ii) not registered under the Securities
      Act pursuant to an exemption from registration provided by Rule 144A
      under the Securities Act. The US Notes offered or sold as provided in
      clause (ii) above may only be offered or sold within the

                                      2
<PAGE>

      United States or to, or for the account or benefit of, U.S. persons (as
      defined in Regulation S), who are "qualified institutional buyers"
      (within the meaning of Rule 144A under the Securities Act). Each Series
      and Class of US Notes will be issued in fully registered global form and
      be initially represented by a US Global Note Certificate and which, in
      aggregate, will represent the aggregate Principal Amount Outstanding of
      such US Notes. The Reg S Notes will be initially offered and sold
      outside the United States to non-US persons pursuant to Reg S. Each
      Series and Class of Reg S Notes will be issued in fully registered
      global form and be initially represented by a Reg S Global Note
      Certificate and which, in aggregate, will represent the aggregate
      Principal Amount Outstanding of the Reg S Notes. Each Global Note
      Certificate shall be substantially in the form set out in Schedule 1
      (Form of Global Note Certificates) to the Issuer Trust Deed. The Global
      Note Certificates shall be executed manually or in facsimile by an
      Authorised Signatory of the Master Issuer and authenticated manually by
      or on behalf of the Registrar.

3.2   Individual Note Certificates: The Global Note Certificates will be
      exchangeable for Individual Note Certificates in the circumstances
      described therein. If the Master Issuer is required to deliver
      Individual Note Certificates pursuant to the terms of the relevant
      Global Note Certificate and the Issuer Trust Deed, each Individual Note
      Certificate shall:

      (a)   be printed or typewritten in accordance with all applicable legal
            and stock exchange requirements;

      (b)   be in substantially the form set out in Schedule 2 (Form of
            Individual Note Certificates) to the Issuer Trust Deed;

      (c)   be in registered form and, in each case, in an Authorised
            Denomination;

      (d)   bear a unique serial number; and

      (e)   be executed manually or in facsimile by an Authorised Signatory of
            the Master Issuer and authenticated manually by or on behalf of
            the Registrar.

3.3   Facsimile signatures on Note Certificates: The Master Issuer may use for
      the purposes of executing any Note Certificate, the facsimile signature
      of any person who at the date of this Agreement was duly authorised to
      sign the same on behalf of the Master Issuer, even if at the time of
      issue of such Note Certificate, such person is no longer so authorised
      and any Note Certificate so executed and authenticated will be valid and
      binding obligations of the Master Issuer. No Note Certificate
      representing an Issuer Note shall be valid for any purpose until it has
      been authenticated by or on behalf of the Registrar in accordance with
      this Agreement and the Issuer Trust Deed.

3.4   Authentication and Deposit of Global Note Certificates: The Master
      Issuer shall, on or prior to each Closing Date deliver a Reg S Global
      Note Certificate or a US Global Note Certificate (as the case may be) in
      respect of each Series and Class of Issuer Notes specified in the
      applicable Final Terms to be issued on the applicable Closing Date. The
      Registrar shall, on or about the applicable Closing Date, authenticate
      each Global Note Certificate in accordance with Clause 3.1 (Global Note
      Certificates). The Reg S Global Note Certificates shall be registered in
      the name of Citivic Nominees Limited as nominee for, and shall be
      deposited on or about the relevant Closing Date

                                      3
<PAGE>

      with; the Common Depositary. The US Global Note Certificates shall be
      registered in the name of Cede & Co. as nominee of DTC, and shall be
      deposited on or about the relevant Closing Date with the DTC Custodian.
      The Master Issuer shall also arrange, on written request, for such
      unauthenticated Global Note Certificates as are required to enable the
      Registrar and Transfer Agent to perform their obligations under Clause 6
      (Replacement Note Certificates) and Clause 9 (Transfers of Issuer Notes)
      to be made available to or to the order of the Registrar from time to
      time. Participants in DTC, Euroclear and Clearstream, Luxembourg shall
      have no rights under this Agreement with respect to the Global Note
      Certificates and the Common Depositary, the DTC Custodian or their
      respective nominees (as applicable) may be treated by the Master Issuer
      or any Agent as the absolute owner of each Global Note Certificate for
      all purposes under this Agreement. Notwithstanding the foregoing,
      nothing in this Agreement shall impair, as between DTC, Euroclear and
      Clearstream, Luxembourg and their respective participants, the operation
      of customary practices governing the exercise of the rights of a Holder
      of any Issuer Note.

3.5   Availability of Individual Note Certificates: If the Master Issuer is
      required to deliver Individual Note Certificates pursuant to the terms
      of the Global Note Certificates (or either of them) and the Issuer Trust
      Deed, the Master Issuer shall promptly arrange for a stock of Individual
      Note Certificates (both bearing and not bearing the Regulation S Legend,
      and, in either case, unauthenticated and with the names of the
      registered holders left blank but otherwise complete and executed on
      behalf of the Master Issuer) to be made available to or to the order of
      the Registrar by the date falling 30 days after the occurrence of the
      relevant event as set out in Clause 3.4 (Individual Note Certificates)
      of the Issuer Trust Deed for authentication in accordance with Clause
      3.2 (Individual Note Certificates). The Master Issuer shall also arrange
      for such Individual Note Certificates as are required to enable the
      Registrar and the Transfer Agent to perform their respective obligations
      under Clause 5 (Exchanges of Global Note Certificates and Delivery of
      Individual Note Certificates), Clause 9 (Transfers of Issuer Notes) and
      Clause 6 (Replacement Note Certificates) to be made available to or to
      the order of the Registrar and the Transfer Agent from time to time.

4.    Duties of Agents

4.1   Duties of the Agent Bank: The Agent Bank shall perform such duties at
      its Specified Office as are set forth in this Agreement and in the
      Issuer Conditions and such other duties as are reasonably incidental
      thereto at the request of the Master Issuer or the Registrar or the
      Paying Agents (or for the purposes of Clause 11 (Agents to act for Note
      Trustee), the Note Trustee) and agrees to comply with the provisions of
      Condition 4 (Interest). In particular and save as hereinafter provided,
      the Agent Bank shall:

      (a)   act as Calculation Agent in respect of Issuer Notes (including,
            without limitation, Index Linked Interest Notes and Dual Currency
            Interest Notes) where named as such in the applicable Note
            Supplement;

      (b)   in respect of a Series and Class of Issuer Notes, unless otherwise
            specified in the applicable Note Supplement, make all the
            determinations and calculations which it is required to make under
            the Issuer Conditions and this Agreement, all subject to and in
            accordance with the Issuer Conditions and this Agreement;

                                      4
<PAGE>

      (c)   as soon as possible after determining the Rate of Interest,
            Interest Amount and Note Payment Date in respect of a Series and
            Class of Notes and all other amounts, rates and dates, which it is
            obliged to determine or calculate under the Issuer Conditions and
            this Agreement (or, in no event later than the fourth Business Day
            thereafter), cause such Rate of Interest, Interest Amount, Note
            Payment Date and such other amounts, rates and dates which it is
            obliged to determine under the Issuer Conditions and this
            Agreement to be notified to the Master Issuer, the Note Trustee,
            the Issuer Security Trustee, the Account Bank, the Issuer Account
            Bank, the Registrar, the Paying Agents, the Issuer Cash Manager
            and (in respect of a Series and Class of Notes listed on a stock
            exchange) the London Stock Exchange (or other stock exchange or,
            as the case may be, listing authority that it may be notified of
            pursuant to Clause 4.4 (Listing)), specifying the rates upon which
            the same are based and (where relevant) the names of the banks
            quoting such rates provided that the Agent Bank shall make such
            determination and calculations in relation to such Series and
            Class of Issuer Notes in accordance with the Issuer Conditions and
            this Agreement;

      (d)   cause notice of the Rate of Interest, Interest Amounts, Note
            Payment Dates and such other amounts, rates and dates which it is
            obliged to determine under the Issuer Conditions and this
            Agreement in respect of each Series and Class of Issuer Notes for
            each Interest Period to be published in accordance with the Issuer
            Conditions;

      (e)   where applicable, determine LIBOR in accordance with Condition 4
            (Interest) and Clause 4.2 (Interest Determination) and notify the
            Funding 2 GIC Provider and the Issuer GIC Provider of the LIBOR
            rate which shall apply for the relevant Interest Period; and

      (f)   maintain such records of the quotations obtained and all rates
            determined and all calculations made by it and make such records
            available for inspection at all reasonable times by the Master
            Issuer, the Issuer Cash Manager, the other Agents, the Issuer
            Security Trustee and the Note Trustee.

4.2   Interest determination:

      (a)   Where the Screen Rate Determination is specified in the applicable
            Note Supplement as the manner in which the Rate of Interest for a
            Series and Class of Issuer Notes is to be determined, the Rate of
            Interest for such Issuer Notes for each Interest Period will,
            subject as provided below, be either:

            (i)   the offered quotation (if there is only one quotation on the
                  Relevant Screen Page); or

            (ii)  the arithmetic mean (rounded if necessary to the fifth
                  decimal place, with 0.000005 being rounded upwards) of the
                  offered quotations,

            (expressed as a percentage rate per annum), for the Reference
            Rate(s) which appears or appear, as the case may be, on the
            Relevant Screen Page as at the Specified Time on the Determination
            Date in question plus or minus (as indicated in the applicable
            Note Supplement) the Margin (if any), all as

                                      5
<PAGE>

            determined by the Agent Bank. If five or more offered quotations
            are available on the Relevant Screen Page, the highest (or, if
            there is more than one highest quotation, one only of those
            quotations) and the lowest (or, if there is more than one lowest
            quotation, one only of those quotations) shall be disregarded by
            the Agent Bank for the purpose of determining the arithmetic mean
            (rounded as provided above) of the offered quotations.

      (b)   If the Relevant Screen Page is not available or if no offered
            quotation appears as at the Specified Time, the Agent Bank shall
            request each of the Reference Banks to provide the Agent Bank with
            its offered quotation (expressed as a percentage rate per annum)
            for the Reference Rate at approximately the Specified Time on the
            Determination Date in question. If two or more of the Reference
            Banks provide the Agent Bank with offered quotations, the Rate of
            Interest for the Interest Period shall be the arithmetic mean
            (rounded if necessary to the fifth decimal place, with 0.000005
            being rounded upwards) of the offered quotations plus or minus (as
            appropriate) the Margin (if any), all as determined by the Agent
            Bank.

      (c)   If on any Determination Date one only or none of the Reference
            Banks provides the Agent Bank with an offered quotation as
            provided in the preceding paragraph, the Rate of Interest for the
            relevant Interest Period shall be the rate per annum which the
            Agent Bank determines as being the arithmetic mean (rounded if
            necessary to the fifth decimal place, with 0.000005 being rounded
            upwards) of the rates, as communicated to (and at the request of)
            the Agent Bank by the Reference Banks or any two or more of them,
            at which such banks were offered, at approximately the Specified
            Time on the relevant Determination Date, deposits in the Specified
            Currency for a period equal to that which would have been used for
            the Reference Rate by leading banks in the London inter-bank
            market (if the Reference Rate is LIBOR) or the Euro-zone
            inter-bank market (if the Reference Rate is EURIBOR) plus or minus
            (as appropriate) the Margin (if any) or, if fewer than two of the
            Reference Banks provide the Agent Bank with offered rates, the
            offered rate for deposits in the Specified Currency for a period
            equal to that which would have been used for the Reference Rate,
            or the arithmetic mean (rounded as provided above) of the offered
            rates for deposits in the Specified Currency for a period equal to
            that which would have been used for the Reference Rate, at which,
            at approximately the Specified Time on the relevant Determination
            Date, any one or more banks (which bank or banks is or are in the
            opinion of the Master Issuer suitable for the purpose) informs the
            Agent Bank it is quoting to leading banks in the London inter-bank
            market (if the Reference Rate is LIBOR) or the Euro-zone
            inter-bank market (if the Reference Rate is EURIBOR) plus or minus
            (as appropriate) the Margin (if any), provided that, if the Rate
            of Interest cannot be determined in accordance with the foregoing
            provisions of this paragraph, the Rate of Interest for such Series
            and Class shall be determined as at the last preceding
            Determination Date for such Series and Class (though substituting,
            where a different Margin is to be applied to the relevant Interest
            Period from that which applied to the last preceding Interest
            Period, the Margin relating to the relevant Interest Period in
            place of the Margin relating to that last preceding Interest
            Period).

                                      6
<PAGE>

      (d)   If the Reference Rate from time to time in respect of a Series and
            Class of Floating Rate Issuer Notes is specified in the applicable
            Note Supplement as being other than LIBOR or EURIBOR, the Rate of
            Interest in respect of such Issuer Notes will be determined as
            provided in the applicable Note Supplement.

4.3   Calculation Agent: Determinations with regards to Issuer Notes
      (including, without limitation, Index Linked Interest Notes) required to
      be made by a Calculation Agent specified in the applicable Note
      Supplement shall be made in the manner so specified. Unless otherwise
      agreed between the Master Issuer and the Lead Manager(s) or unless the
      Agent Bank is the Calculation Agent (in which case the provisions of
      this Agreement shall apply), those determinations shall be made on the
      basis of a calculation agency agreement substantially in the form of
      Schedule 3 hereto. The terms of any Series and Class of Issuer Notes may
      specify additional duties and obligations of any Agent, the performance
      of which will be agreed between the Master Issuer and the relevant Agent
      prior to the relevant Closing Date.

4.4   Listing: A Series of the Issuer Notes, on issue, may be admitted to the
      Official List of the UK Listing Authority and admitted to trading on the
      Market or other market of the London Stock Exchange. The Master Issuer
      will advise the Agent Bank and the Note Trustee in writing if such
      listing is withdrawn or if any Series and Class of Issuer Notes become
      listed by any other listing authority or, as the case may be, admitted
      to trading on any other stock exchange.

4.5   Duties of the Registrar and the Transfer Agent: The Registrar and the
      Transfer Agent shall hold or shall procure the holding in safe custody
      of any unauthenticated Global Note Certificates delivered to it in
      accordance with Clauses 3.4 (Authentication, and Deposit of Global Note
      Certificates) and 3.5 (Master Global Note Certificate) and any
      Individual Note Certificates delivered to it in accordance with Clause
      3.6 (Availability of Individual Note Certificates) and shall ensure that
      such Global Note Certificates and Individual Note Certificates are
      authenticated and delivered only in accordance with the terms of this
      Agreement, the Issuer Trust Deed, the Global Note Certificates and the
      Issuer Conditions.

4.6   Authority to authenticate: Each of the Registrar, the Transfer Agent or
      their designated agent is authorised and instructed by the Master Issuer
      to authenticate any Note Certificate as may be required to be
      authenticated hereunder by the signature of any of its officers or any
      other person duly authorised for the purpose by the Registrar or (as the
      case may be) the Transfer Agent.

5.    Exchanges  of Global Note  Certificates  and  Delivery  of  Individual
      Note Certificates

5.1   Exchange of Global Note Certificates for Individual Note Certificates
      and Delivery of Individual Note Certificates: A Global Note Certificate
      may only be exchanged for Individual Note Certificates in the
      circumstances set forth in the Global Note Certificate and set out in
      Clause 3.4 (Individual Note Certificates) of the Issuer Trust Deed. If
      any Global Note Certificate becomes exchangeable for Individual Note
      Certificates in accordance with its terms, the Registrar shall, subject
      to its having received any certificates required by the terms of the
      relevant Global Note Certificate, against surrender of such Global Note
      Certificate to it or to its order, authenticate and

                                      7
<PAGE>

      deliver in accordance with this Agreement, the Global Note Certificates,
      the Issuer Conditions and the Issuer Trust Deed, Individual Note
      Certificates, provided that in no circumstances shall the aggregate
      principal amount of such Individual Note Certificates exceed the
      aggregate principal amount of the relevant Global Note Certificate. The
      Individual Note Certificates so issued in exchange for any Global Note
      Certificate shall be issued in such names as the DTC Custodian or the
      Common Depositary, as the case may be, (based on the instructions of
      DTC, Euroclear and Clearstream, Luxembourg) shall instruct the Registrar
      and the Registrar shall, in accordance with this Agreement, the Global
      Notes, the Issuer Conditions and the Issuer Trust Deed, deliver or cause
      to be delivered to the persons designated in such instructions,
      Individual Note Certificates of the relevant class in the appropriate
      principal amounts and the Registrar will enter the names and addresses
      of such persons on the Register. Individual Note Certificates issued in
      exchange for a Reg S Global Note Certificate or a US Global Note
      Certificate pursuant to this Clause 5.1 (Exchange of Global Note
      Certificates for Individual Note Certificates and Delivery of Individual
      Note Certificates) shall bear the Regulation S Legend and shall be
      subject to all restrictions on transfer contained therein to the same
      extent as the Global Note Certificate so exchanged.

5.2   Exchange of Global Note Certificates: Global Note Certificates may also
      be exchanged or replaced, in whole or in part, as provided in Clause 6
      (Replacement Note Certificates). Every Global Note Certificate
      authenticated and delivered in exchange for, or in lieu of, another
      Global Note Certificate or any portion thereof, pursuant to Clause 6
      (Replacement Note Certificates) hereof, shall be authenticated and
      delivered in the form of, and shall be, a Global Note Certificate. A
      Global Note Certificate may not be exchanged for another Global Note
      Certificate other than as provided in this Clause 5 (Exchanges of Global
      Note Certificates and Delivery of Individual Note Certificates).

6.    Replacement Note Certificates

6.1   Delivery of Replacements: Subject to and in accordance with this Clause
      6 (Replacement Note Certificates) and Condition 13 (Replacement of
      Notes) and receipt of replacement Global Note Certificates and/or
      Individual Note Certificates (as the case may be), the Registrar or the
      Transfer Agent, as the case may be shall, upon and in accordance with
      the instructions of the Master Issuer (which instructions may, without
      limitation, include such terms as to the payment of expenses and as to
      evidence, security and indemnity as the Master Issuer, the Transfer
      Agent and the Registrar may reasonably require and otherwise as required
      by Condition 13 (Replacement of Notes), as necessary), complete,
      authenticate and deliver, or procure the authentication and delivery on
      their behalf of, a Global Note Certificate or, as the case may be, an
      Individual Note Certificate, as a replacement for (and being an Issuer
      Note in the same form as) the relevant Global Note Certificate or, as
      the case may be, Individual Note Certificate which the Master Issuer has
      determined to issue as a replacement for any Global Note Certificate or
      Individual Note Certificate which has been mutilated or defaced or which
      is alleged to have been destroyed, stolen or lost and the Registrar
      shall, in addition, as promptly as is practicable, enter such details on
      the Register; provided, however, that neither the Registrar nor the
      Transfer Agent shall deliver any Global Note Certificate or Individual
      Note Certificate as a replacement for any Global Note Certificate or
      Individual Note Certificate which has

                                      8
<PAGE>

      been mutilated or defaced otherwise than against surrender of the same
      and shall not issue any replacement Global Note Certificate or
      Individual Note Certificate until the applicant has furnished the Master
      Issuer, Registrar or Transfer Agent, as the case may be, with such
      evidence and indemnity as the Master Issuer and the Transfer Agent or
      the Registrar (as the case may be) may reasonably require and has paid
      such costs and expenses as may be incurred in connection with such
      replacement.

6.2   Replacements to be numbered: Each replacement Global Note Certificate or
      Individual Note Certificate delivered hereunder shall bear a unique
      serial number.

6.3   Cancellation and destruction: Each of the Registrar and the Transfer
      Agent, as the case may be, shall cancel and destroy each mutilated or
      defaced Note Certificate surrendered to it in respect of which a
      replacement has been delivered and the Registrar shall, in addition, as
      promptly as is practicable, enter such details on the Register.

6.4   Notification: The Registrar or the Transfer Agent, as the case may be,
      shall notify the Master Issuer, the other Agents and the Note Trustee of
      the delivery by it in accordance herewith of any replacement Note
      Certificate, specifying the serial number thereof and the serial number
      (if any and if known) of the Note Certificate which it replaces and
      confirm (if such is the case) that the Note Certificate which it
      replaces has been cancelled or destroyed.

7.    Payments to the Paying Agents

7.1   Master Issuer to pay the Paying Agents: In order to provide for the
      payment of interest and principal in respect of a Series and Class of
      Issuer Notes as the same becomes due and payable in accordance with the
      Issuer Conditions and the Issuer Trust Deed, the Master Issuer shall pay
      to the Paying Agents or otherwise cause the Paying Agents to receive on
      or before the date on which such payment becomes due, an amount which is
      equal to the amount of principal and interest then falling due in
      respect of such Series and Class of Issuer Notes on such date.

7.2   Manner and Time of Payment: The Master Issuer shall, not later than
      10.00 a.m. (London time) or, in the case of any payment in dollars,
      10.00 a.m. (New York time) on each Note Payment Date, or other date on
      which any payment of principal and interest in respect of a Series and
      Class of Issuer Notes becomes due, unconditionally pay or cause to be
      unconditionally paid to the Paying Agents by credit transfer such
      amounts in the relevant currency, in immediately available funds or, as
      the case may be, same day freely-transferable funds as may be required
      for the purpose of paying interest and (to the extent applicable)
      principal under such Series and Class of Issuer Notes (after taking
      account of any cash then held by the Paying Agents and available for the
      purpose), such amounts to be paid to the credit of such accounts of the
      Paying Agents with such banks in the principal financial centre in the
      country of the relevant currency (which, if the relevant currency is
      Australian dollars, New Zealand dollars or euro shall be Sydney,
      Auckland and London, respectively) as shall be notified to the Master
      Issuer, the Issuer Cash Manager and to the Note Trustee by the Paying
      Agents in writing not less than two weeks before the first payment is
      due to be made to the Noteholders. Each Paying Agent shall notify the
      Master Issuer, the Issuer Security Trustee, the Issuer Cash Manager
      and/or the Note Trustee in writing, 15 Business Days prior to any change
      of those accounts, or any of them.

                                      9
<PAGE>

7.3   Notification of Payment by Master Issuer: The Master Issuer shall
      procure that each bank or other person effecting payment for it in
      accordance with Clause 7.2 (Manner and Time of Payment) shall by not
      later than 2.00 p.m. (Local time) on the second Business Day before the
      due date of each payment under Clause 7.2 (Manner and Time of Payment)
      confirm by facsimile or authenticated SWIFT message to the Paying Agents
      that it has issued irrevocable payment instructions for the transfer of
      the relevant sum due to the relevant account of the Paying Agents.

7.4   Confirmation of Amounts Payable in respect of the Issuer Notes: The
      Master Issuer shall by not later than 2.00 p.m. (Local time) on the
      second Business Day before each Note Payment Date, or other date on
      which any payment is due under Clause 7.2 (Manner and Time of Payment),
      notify, or procure the notification by the Issuer Cash Manager or other
      person on behalf of the Master Issuer to, the Paying Agents, the Note
      Trustee and the Registrar of the amount of interest and/or principal (as
      the case may be) payable to Noteholders in accordance with the Issuer
      Conditions in respect of each Series and Class of Issuer Notes on such
      Note Payment Date, or other date in question and the apportionment of
      such amount as between principal and interest. All such amounts shall be
      payable subject to and in accordance with the Issuer Priority of
      Payments.

7.5   Exclusion of Liens and Interest: Save as expressly provided otherwise in
      this Agreement, the Paying Agents shall be entitled to deal with each
      amount paid to them under this Clause 7 (Payments to the Paying Agents)
      in the same manner as other amounts paid to them as bankers by their
      customers; provided, however, that:

      (a)   they shall not exercise against the Master Issuer any lien, right
            of set-off or similar claim in respect thereof;

      (b)   they shall not be liable to any person for interest thereon; and

      (c)   funds received by the Paying Agents for the payment of any sums
            due in respect of any Issuer Notes shall be segregated only to the
            extent required by law.

7.6   Application by Paying Agents: The Paying Agents shall apply (or direct
      or cause the application of) each amount paid to them under this Clause
      7 (Payments to the Paying Agents) in accordance with Clause 8 (Payments
      to Noteholders) and shall not be obliged to repay any such amount other
      than as provided herein or unless the claim for the relevant payment
      becomes void under the Issuer Conditions in which event they shall repay
      to the Master Issuer such portion of such amount as relates to such
      payment, by paying the same by credit transfer in the relevant currency
      to such account with such bank as the Master Issuer has by notice to the
      Paying Agents specified for the purpose.

7.7   Notification if Funds Not Received on Note Payment Date: Each Paying
      Agent shall forthwith notify the Master Issuer, the Issuer Cash Manager,
      the Issuer Security Trustee and the Note Trustee and the other Agents if
      it has not, by the due date of payment to it specified in Clause 7.2
      (Manner and Time of Payment), received unconditionally the full amount
      required for any payment.

8.    Payments to Noteholders

                                      10
<PAGE>

8.1   Payments in respect of Issuer Notes: Each Paying Agent acting through
      its Specified Office shall make payments of interest and principal in
      respect of a Series and Class of Issuer Notes in accordance with the
      Issuer Conditions and so long as such Issuer Notes are evidenced by a
      Global Note Certificate, the terms thereof, provided however, that:

      (a)   no Paying Agent will make any payment of interest or principal in
            respect of any Series and Class of Issuer Notes in an amount which
            is greater than the amount of interest or principal payable in
            accordance with the Issuer Conditions in respect of such Series
            and Class of Issuer Notes and notified to the Paying Agents in
            accordance with Clause 7.4 (Confirmation of Amounts Payable in
            respect of the Issuer Notes);

      (b)   whilst any Series and Class of Issuer Notes continue to be
            represented by a Global Note Certificate, all payments of
            principal or interest (as the case may be) due in respect of such
            Series and Class of Issuer Notes will be payable to, or to the
            order of the DTC Custodian or its nominee or the Common Depositary
            or their nominee;

      (c)   if any Note Certificate is presented or surrendered for payment to
            any Paying Agent and such Paying Agent has delivered a replacement
            therefor or has been notified that the same has been replaced,
            such Paying Agent shall as soon as is reasonably practicable
            notify the Master Issuer in writing of such presentation or
            surrender and shall not make payment against the same until it is
            so instructed by the Master Issuer and has received the amount to
            be so paid;

      (d)   each Paying Agent shall cancel each Note Certificate against
            presentation and surrender of which it has made full payment and
            shall deliver each such Note Certificate so cancelled by it to the
            Registrar;

      (e)   all payments in respect of any Issuer Notes will be distributed
            without deduction or withholding for any taxes, duties,
            assessments or other governmental charges of whatever nature
            except as and then only to the extent required by applicable law,
            in which case each Paying Agent shall be entitled to make such
            deduction or withholding from any payment which it makes
            hereunder. If any such deduction or withholding is required to be
            made, then neither the Master Issuer nor any other person will be
            obliged to pay any additional amounts in respect thereof; and

      (f)   a Paying Agent shall not be obliged (but shall be entitled) to
            make payments of principal or interest if it has not received the
            full amount of any payment due to it under Clause 7 (Payments to
            the Paying Agents).

8.2   Registrar Notification: The Registrar will notify the Paying Agents and
      Transfer Agents, not later than five days after each Record Date in
      respect of a Series and Class of Issuer Notes, of the names of all
      holders of such Issuer Notes appearing in the Register on such Record
      Date and the addresses of such holders to whom cheques should be posted
      and whether any Noteholder has elected to receive payments by transfer
      to a bank account and, if so, the relevant details of such bank account
      and the Registrar and the Paying Agents shall make or shall procure that
      payments of interest and principal in respect of such Issuer Notes will
      be made in accordance with

                                      11
<PAGE>

      Condition 6 (Payments) either by cheque posted to the address of the
      Noteholder appearing in the Register on such Record Date or, if the
      Noteholder has so elected in accordance with the Issuer Conditions, by
      transfer to an account in the relevant currency; provided that no
      payment in respect of such Issuer Notes will be made on the final date
      for redemption or payment, or such earlier date as such Issuer Notes may
      become repayable or payable, in whole unless the Registrar or the
      Transfer Agent confirms to the Paying Agents that the relevant Note
      Certificate has been surrendered to it.

8.3   Partial Payments: If at any time and for any reason a Paying Agent makes
      a partial payment in respect of any Global Note Certificate or any
      Individual Note Certificate presented for payment to it, such Paying
      Agent shall endorse thereon a statement indicating the amount and the
      date of such payment. In addition, if, on any due date for payment, less
      than the full amount of any principal or interest is paid in respect of
      any Series and Class of Issuer Notes, the Registrar will note on the
      Register a memorandum of the amount and date of any payment then made
      and, if a Global Note Certificate or Individual Note Certificate is
      presented for payment in accordance with the Conditions and no payment
      is then made, the date of presentation of such Global Note Certificate
      or Individual Note Certificate.

8.4   Appropriation by Paying Agent: If any Paying Agent makes any payment in
      accordance with Clause 8.1 (Payments in respect of Issuer Notes), it
      shall be entitled to appropriate for its own account out of the funds
      received by it under Clause 7.1 (Master Issuer to pay the Paying Agents)
      an amount equal to the amount so paid by it.

8.5   Reimbursement by Master Issuer: If any Paying Agent makes a payment in
      respect of any Series and Class of Issuer Notes at any time at which the
      relevant Paying Agent has not received the full amount of the relevant
      payment due to it under Clause 7.1 (Master Issuer to pay the Paying
      Agents) and that Paying Agent is not able out of the funds received by
      it under Clause 7.1 (Master Issuer to pay the Paying Agents) to
      reimburse such Paying Agent therefor by appropriation under Clause 8.4
      (Appropriation by Paying Agent), the Master Issuer shall from time to
      time on written demand pay to that Paying Agent for account of such
      Paying Agent:

      (a)   the amount so paid out by such Paying Agent and not so reimbursed
            to it; and

      (b)   interest on such amount from the date on which such Paying Agent
            made such payment until the date of reimbursement of such amount,

      provided, however, that any payment under paragraph (a) above shall
      satisfy pro tanto the Master Issuer's obligations under Clause 7.1
      (Master Issuer to pay the Paying Agents) and provided, further, that
      interest shall accrue for the purpose of paragraph (b) (as well after as
      before judgment) on the basis of a year of 365 days and the actual
      number of days elapsed and at a rate per annum specified by the Paying
      Agents as reflecting its cost of funds for the time being in relation to
      the unpaid amount.

8.6   The Registrar shall pay to Citibank N.A. (in this capacity, the
      "Exchange Agent"), and the Exchange Agent shall receive, all payments
      made under any Global Note Certificate registered in the name of the DTC
      Custodian or its nominee (a "DTC Note") which is denominated in a
      Specified Currency other than U.S. dollars. The Exchange Agent shall, in
      accordance with normal DTC practice, be advised in

                                      12
<PAGE>

      writing, on or before the relevant Record Date, by DTC or its nominee:

            (i)   if any beneficial holder (a "Beneficial Holder") of the DTC
                  Note in respect of which payment is due has elected to
                  receive the payment in U.S. dollars and, if so, the amount
                  of the payment (expressed in the Specified Currency in which
                  the relevant DTC Note is denominated) which the Beneficial
                  Holder wishes to receive in U.S. dollars; and

            (ii)  of the payment details for each Beneficial Holder.

8.7   The Exchange Agent shall enter into a contract on behalf of the Master
      Issuer at or before 11:00 a.m. (New York time) on the second New York
      Business Day (as defined below) preceding the applicable payment date
      and will solicit bid quotations from three recognised foreign exchange
      dealers (which may include the Exchange Agent) for the purchase of U.S.
      dollars with an amount of the relevant Specified Currency equal to the
      aggregate amount which DTC has notified the Exchange Agent that
      Beneficial Holders wish to receive in U.S. dollars. In the event that no
      notification is received from DTC before the Record Date, the Exchange
      Agent shall enter into a contract for the purchase of U.S. dollars in
      respect of the full amount of the payment due in respect of the relevant
      DTC Note. The settlement date for each purchase shall be the applicable
      payment date and the Exchange Agent shall enter into a contract for the
      purchase of the relevant amount of U.S. dollars on the basis of the most
      favourable bid submitted. The Exchange Agent shall, on the relevant
      payment day:

            (i)   pay all amounts converted into U.S. dollars as stated above
                  to DTC or its nominee for distribution to the relevant
                  Beneficial Holders; and

            (ii)  pay all the other amounts due which are denominated
                  otherwise than in U.S. dollars direct to the relevant
                  Beneficial Holders in accordance with the payment
                  instructions received from the DTC Custodian or its nominee.

      For the purpose of this sub-clause, "New York Business Day" means a day
      (other than a Saturday or a Sunday) on which foreign exchange markets
      are open for business in New York City that is neither a legal holiday
      nor a day on which banking institutions are authorised or required by
      law or regulation to close in the city of New York and (i) with respect
      to Notes payable in Specified Currency other than euro, in the principal
      financial centre of the relevant Specified Currency (if other than New
      York City and which, if the Specified Currency is Australian or New
      Zealand dollars, shall be Sydney, and Auckland, respectively) and (ii)
      with respect to Notes payable in euro, a day on which the TARGET System
      is open.

8.8   In the event that the Exchange Agent is unable to convert the relevant
      Specified Currency into U.S. dollars, the entire payment will be made in
      the relevant Specified Currency in accordance with the payment
      instructions received from DTC following notification by the Exchange
      Agent to DTC of that fact.

9.    Transfers of Issuer Notes

9.1   Authentication and Delivery of Individual Note Certificates: The
      Registrar shall

                                      13
<PAGE>

      authenticate and deliver, or cause the Transfer Agent or other
      designated agent to authenticate and deliver, any Individual Note
      Certificate issued upon a transfer in accordance with this Agreement and
      the Issuer Conditions.

9.2   Maintenance of Register: The Registrar shall maintain the Register at
      its Specified Office or at such other place as the Note Trustee may
      approve in writing, in accordance with the Issuer Conditions. The
      Register shall show the aggregate Principal Amount Outstanding of each
      Issuer Note, the serial numbers thereof and the respective dates of
      issue of the related Note Certificate(s) and all subsequent transfers,
      cancellations and replacements thereof and the names and addresses of
      the initial holders thereof and the dates of all transfers and changes
      of ownership thereto and the names and addresses of all subsequent
      holders of such Note Certificates. The Registrar shall make the Register
      available to the Master Issuer, the Issuer Cash Manager, the Note
      Trustee, the other Agents or any person authorised by any of them at all
      reasonable times during its office hours for their inspection and for
      the taking of copies thereof or extracts therefrom and the Registrar
      shall deliver to such persons all such lists of Noteholders, their
      addresses and holdings as they may request.

9.3   Registration of transfers in the Register: The Registrar shall make
      available forms of transfer and receive requests for the transfer of any
      Issuer Notes and shall make the necessary entries in the Register to
      record all transfers in each case subject to and in accordance with the
      relevant Issuer Notes, the Issuer Conditions, the Regulations and the
      Issuer Trust Deed. In particular the Registrar shall, subject to and in
      accordance with the Issuer Conditions and the Regulations, within such
      period of time as is set out in the Issuer Conditions after the receipt
      by it of (or the receipt by it of notification from the Transfer Agent
      of delivery to it of) the relevant Note Certificates duly endorsed for
      transfer, authenticate and issue the duly dated and completed new Note
      Certificate(s) and deliver the new Note Certificate(s) in the name of
      the transferee at its Specified Office or (at the risk of the
      transferee) send the new Note Certificate(s) by mail to such address as
      may be specified in the form of transfer and make all necessary entries
      on the Register to record such transfer.

9.4   Closed Period: No transfer shall be registered for a period of 15
      calendar days immediately preceding any due date for payment of
      principal or interest in respect of the Issuer Notes or, as the case may
      be, the due date for redemption, or as the case may be, payment of any
      of the relevant Issuer Notes.

9.5   Transfer Agent to receive requests for transfers of Issuer Notes: The
      Transfer Agent shall receive requests for the transfer of any Issuer
      Notes in accordance with the Issuer Conditions and the Regulations and
      assist, if required, in the issue of new Note Certificates to give
      effect to such transfers and, in particular, upon any such request being
      duly made, shall promptly notify the Registrar of:

      (a)   the aggregate principal amount of the Issuer Notes to be
            transferred;

      (b)   the name(s) and addressees to be entered on the Register of the
            holder(s) of the new Note Certificate(s) to be issued in order to
            give effect to such transfer; and

      (c)   the place and manner of delivery of the new Note Certificate(s) to
            be delivered in respect of such transfer,

                                      14
<PAGE>

      and shall forward the Note Certificate(s) relating to such Issuer
      Note(s) to be transferred (with the relevant form(s) of transfer duly
      completed) to the Registrar with such notification. The Transfer Agent
      shall maintain in safe custody all Note Certificates delivered to and
      held by it hereunder and shall ensure that Issuer Notes are transferred
      only in accordance with the Issuer Conditions, the Regulations, this
      Agreement and the Issuer Trust Deed.

9.6   Regulations: In the event that Individual Note Certificates with respect
      to any Issuer Notes are required to be issued, the Registrar shall
      (after consultation with the Master Issuer, the Paying Agents, the
      Transfer Agent and the Note Trustee) promulgate reasonable regulations
      concerning the carrying out of their respective duties (the
      "Regulations"), including the carrying out of transfers and exchanges of
      such Issuer Notes and the forms and evidence to be proved. All such
      transfers and exchanges will be made subject to the Regulations. The
      initial Regulations are set out in Schedule 2 (Regulations concerning
      the Transfer, Exchange and Registration of the Issuer Notes) hereto. The
      Regulations may be changed by the Master Issuer with the prior written
      approval of the Registrar and the Note Trustee, which approval shall not
      be unreasonably withheld or delayed. A copy of the current Regulations
      will be sent by the Registrar to any holder of an Issuer Note who so
      requests.

10.   Miscellaneous Duties of the Agents

10.1  Maintenance of Records: Each of the Agents shall maintain records of all
      documents received by it in connection with its duties hereunder and
      shall make such records available for inspection at all reasonable times
      by the Master Issuer, the Issuer Cash Manager, the Note Trustee and the
      other Agents and, in particular, the Registrar shall:

      (a)   maintain a full and complete record of all Note Certificates
            delivered hereunder and of their exchange, redemption, payment,
            partial payment, cancellation, mutilation, defacement, alleged
            destruction, theft, loss or, as the case may be, replacement
            (including all replacement Note Certificates issued in
            substitution for any lost, stolen, mutilated, defaced or destroyed
            Note Certificates);

      (b)   make such records available for inspection at all reasonable times
            by the Master Issuer, the Issuer Cash Manager, the Note Trustee
            and the other Agents; and

      (c)   make copies of this Agreement, the Issuer Trust Deed, the Issuer
            Deed of Charge, the Programme Master Definitions Schedule and the
            Issuer Master Definitions Schedule available for inspection at its
            Specified Office at all reasonable times.

10.2  Cancellation: The Transfer Agent, the Paying Agents or the Registrar (as
      the case may be) shall:

      (a)   procure that all Note Certificates surrendered or delivered to it
            as (i) redeemed in full, (ii) mutilated or defaced, surrendered
            and replaced pursuant to the Issuer Conditions, or (iii)
            exchanged, shall forthwith be cancelled on behalf of the Master
            Issuer;

                                      15
<PAGE>

      (b)   shall keep a record of the aggregate principal amount of the
            Issuer Notes, and the serial numbers of the Note Certificates,
            which are so cancelled by it; and

      (c)   shall notify the other party or parties (i.e. the Paying Agents,
            the Transfer Agent or the Registrar (as the case may be)) of all
            action taken pursuant to Clause 10.2(a) and 10.2(b).

10.3  Information from Agents: The Agents shall make available to the other
      Agents such information as is reasonably required for the maintenance of
      the records referred to in Clause 10.1 (Maintenance of Records).

10.4  Certifications: Each Paying Agent shall promptly copy to the Master
      Issuer, any other Paying Agent and the Note Trustee any certifications
      received by it in accordance with or otherwise in relation to the Issuer
      Notes.

10.5  Forwarding of Communications: Each Agent shall promptly forward to the
      Master Issuer and the Note Trustee a copy of any notice or communication
      addressed to the Master Issuer or the Note Trustee by any Noteholder and
      which is received by such Agent.

10.6  Safe Custody of Note Certificates: Each of the Registrar and the
      Transfer Agent shall maintain in safe custody all Note Certificates
      delivered to it and held by it hereunder.

10.7  Publication and Delivery of Notices: The Registrar shall, upon and in
      accordance with the instructions of the Master Issuer and the Note
      Trustee received at least 10 days before the proposed publication date,
      arrange for the publication and delivery in accordance with the Issuer
      Conditions of any notice which is to be given to the Noteholders and
      shall promptly supply two copies thereof to the Note Trustee, the other
      Agents, the London Stock Exchange or other stock exchange on which the
      Issuer Notes are then listed, (if any) and any Clearing System.

10.8  Destruction: The Registrar may destroy each Note Certificate which has
      been cancelled and delivered to it in accordance with the terms of this
      Agreement, in which case it shall promptly furnish the Master Issuer and
      the Note Trustee, on request, a certificate as to such destruction,
      specifying the reason for such destruction and the serial numbers of the
      relevant Note Certificate.

10.9  Forms of Proxy and Block Voting Instructions: In the event of a Meeting
      (as defined in Schedule 4 (Provisions for Meetings of Noteholders) to
      the Issuer Trust Deed) of the Noteholders of the Notes of any Series
      and/or Class(es), the Registrar shall, at the request of any Noteholder
      in accordance with the Issuer Trust Deed, make available uncompleted and
      unexecuted Forms of Proxy and issue Block Voting Instructions in a form
      and manner which comply with the provisions of the Schedule 4
      (Provisions for Meetings of Noteholders) to the Issuer Trust Deed
      (except that it shall not be required to issue the same less than
      forty-eight hours before the time for which the Meeting or the poll to
      which the same relates has been convened or called). The Registrar shall
      keep a full record of completed and executed Forms of Proxy and Block
      Voting Instructions issued or received by it and will give to the Master
      Issuer and the Note Trustee not less than twenty-four hours before the
      time appointed for any Meeting or adjourned Meeting, full particulars of
      duly completed Forms of Proxy received by it and of all Block Voting
      Instructions issued by it in respect of such Meeting or

                                      16
<PAGE>

      adjourned Meeting.

10.10 Submission of Note Supplement: The Principal Paying Agent shall submit
      to the relevant authority or authorities such number of copies of each
      Note Supplement which relates to Issuer Notes which are to be listed as
      the relevant stock exchange or listing authority or authorities may
      require;

10.11 Additional Duties of the Registrar: If Individual Note Certificates are
      required to be delivered pursuant to the terms of any Global Note
      Certificate and the Issuer Trust Deed, the Registrar shall:

      (a)   five Business Days prior to each Note Payment Date notify the
            Master Issuer, the Issuer Cash Manager and the other Agents of the
            aggregate Principal Amount Outstanding of the relevant Issuer
            Notes;

      (b)   receive any document relating to or affecting the title to any
            Individual Note Certificates including all forms of transfer,
            forms of exchange, probates, letters of administration and powers
            of attorney and maintain proper records of the details of all
            documents received;

      (c)   prepare all such lists of the holders of the Individual Note
            Certificates as may be required by the Master Issuer, the Issuer
            Cash Manager, the Paying Agents or the Note Trustee or any person
            authorised by any of them;

      (d)   comply with the proper and reasonable requests of the Master
            Issuer with respect to the maintenance of the Register and provide
            the Paying Agents with such information relating to the Individual
            Note Certificates as they may reasonably require for the proper
            performance of their duties; and

      (e)   carry out such other acts as may reasonably be necessary to give
            effect to the Issuer Conditions, this Agreement and the
            Regulations. In carrying out its functions the Registrar shall act
            in accordance with the terms of this Agreement, the Regulations,
            the Issuer Conditions and the Issuer Trust Deed.

      No transfer from a holder of an Individual Note Certificate shall be
      registered for a period of 15 days immediately preceding a Note Payment
      Date.

10.12 Additional Duties of the Transfer Agent: Subject as provided in and in
      accordance with the Issuer Conditions, the Regulations and this
      Agreement or if otherwise requested by the Master Issuer, the Transfer
      Agent shall:

      (a)   on behalf of the Registrar, authenticate Note Certificates in
            accordance with this Agreement upon any transfer of interests in a
            Global Note Certificate, Individual Note Certificate or otherwise
            upon any transfer of any Issuer Notes;

      (b)   on behalf of the Registrar, make available forms of transfer,
            Forms of Proxy and any certificates as to beneficial ownership in
            respect of the Issuer Notes, receive requests for the transfer of
            Note Certificates, forms of transfer, Forms of Proxy, certificates
            and other evidence, inform the Registrar of the name and address
            of the holder of each such Note Certificate, the serial numbers of
            any Note Certificates, the name and address of the relevant person
            to be inserted in the Register, forward each such document to the
            Registrar and, upon being

                                      17
<PAGE>

            informed by the Registrar that the appropriate entries have been
            made in the Register and all formalities complied with, forthwith
            upon request by the Registrar issue new Note Certificates on
            behalf of the Registrar representing the relevant new Note
            Certificates to be transferred;

      (c)   keep the Registrar informed of all transfers and exchanges and
            give to the Paying Agents and the Registrar such further
            information with regard to its activities hereunder as may
            reasonably be required by them for the proper carrying out of
            their respective duties; and

      (d)   carry out such other acts as may be necessary to give effect to
            the Issuer Conditions, this Agreement and the Regulations.

11.   Agents to act for Note Trustee

11.1  Actions of Agents after Notice by Note Trustee of a Potential Note Event
      of Default or a Note Event of Default: At any time after a Potential
      Note Event of Default or a Note Event of Default in respect of the
      Issuer Notes or any of them shall have occurred (which shall not have
      been waived by the Note Trustee or remedied to its satisfaction) or the
      Issuer Notes shall otherwise have become due and repayable or Individual
      Note Certificates have not been issued when so required in accordance
      with the Issuer Trust Deed and the Global Note Certificates, the
      Principal Paying Agent, the US Paying Agent, the Paying Agents, the
      Agent Bank, the Transfer Agent and the Registrar shall, if so required
      by notice in writing given by the Note Trustee to the Master Issuer and
      the Agents (or such of them as are specified in such notice):

      (a)   act thereafter, and until otherwise instructed by the Note
            Trustee, as the Agents of the Note Trustee on the terms provided
            herein mutatis mutandis (save that the Note Trustee's liability
            under any provision herein contained for the remuneration,
            indemnification and payment of out-of pocket expenses of such
            Agents shall be limited to the amount for the time being held by
            the Note Trustee on the trusts of the Issuer Trust Deed relating
            to the Issuer Notes which is available to be applied by the Note
            Trustee for such purpose) and thereafter hold all Note
            Certificates and all sums, documents and records held by them in
            their respective capacities in respect of any Issuer Notes on
            behalf of the Note Trustee; and/or

      (b)   deliver up all Note Certificates and all sums, documents and
            records held by them in respect of any Issuer Notes to the Note
            Trustee or as the Note Trustee shall direct in such notice,
            provided that such notice shall be deemed not to apply to any
            document or record which any Agent is obliged not to release by
            any applicable law or regulation.

11.2  Withdrawal of Notice: The Note Trustee may, at any time if a Potential
      Note Event of Default or a Note Event of Default is remedied to the
      reasonable satisfaction of the Note Trustee during any applicable grace
      period, by notice in writing to the Master Issuer and the relevant
      Agents, withdraw any notice given by the Note Trustee pursuant to Clause
      11.1 (Actions of Agents after

                                      18
<PAGE>

      Notice by Note Trustee of a Potential Note of Default or a Note Event of
      Default) whereupon such Agents shall act as agents of the Master Issuer
      in accordance with the terms hereof. The withdrawal of any notice given
      by the Note Trustee pursuant to Clause 11.1 (Actions of Agents after
      Notice by Note Trustee of a Potential Note of Default or a Note Event of
      Default) shall not preclude the Note Trustee from issuing any other or
      further notices pursuant to that Clause on any subsequent occasion and
      at any time after the occurrence of a Potential Note Event of Default or
      a Note Event of Default and no notice given by the Note Trustee pursuant
      to Clause 11.1 (Actions of Agents after Notice by Note Trustee of a
      Potential Note Event of Default or a Note Event of Default) shall be
      withdrawn except at the absolute discretion of the Note Trustee.

12.   Fees and Expenses

12.1  Fees: The Master Issuer shall pay to each Agent, during the period when
      any of the Issuer Notes remains outstanding, such fees as have been
      agreed in writing between the Master Issuer and each Agent in respect of
      the respective services of each Agent hereunder (together with any
      amounts in respect of value added tax (against production of a valid tax
      invoice)). If any agent shall cease to be an Agent hereunder, it shall
      repay to the Master Issuer, the unearned portion, calculated on a pro
      rata basis of the said fees.

12.2  Front-end Expenses: The Master Issuer shall after receipt of an account
      of such expenses reimburse each Agent for all reasonable out-of-pocket
      expenses incurred by it in the negotiation, preparation and execution of
      this Agreement and for all reasonable expenses (including, without
      limitation, reasonable legal fees and any communication, courier,
      postage and other out-of-pocket expenses) properly incurred in
      connection with its services hereunder (together with any amounts in
      respect of value added tax (against production of a valid tax invoice))
      provided that such expenses shall not have been incurred as a result of
      the Agent's negligence, wilful misconduct or bad faith, other than such
      costs and expenses as are separately agreed to be reimbursed out of the
      fees payable under Clause 12.1 (Fees).

12.3  Taxes and Expenses Occasioned by Default: The Master Issuer shall pay
      all stamp, registration and other similar taxes, duties and governmental
      levies of whatsoever nature (including any interest and penalties
      thereon or in connection therewith) which are payable upon or in
      connection with the execution and delivery of this Agreement.

12.4  Payment: All amounts to be paid by the Master Issuer to any Agent under
      this Clause 12 (Fees and Expenses) shall only be payable in accordance
      with and subject to the Issuer Priority of Payments which is applicable
      to the Master Issuer at the time of payment.

                                      19
<PAGE>

13.   Terms of Appointment

13.1  Rights and Powers of the Paying Agents:

      (a)   The Paying Agents shall (except as ordered by a court of competent
            jurisdiction or as required by law) in connection with their
            services hereunder (whether or not the relevant Issuer Note shall
            be overdue and notwithstanding any notice to the contrary or
            writing shown thereon or any notice of previous loss or theft or
            of trust or other interest therein (other than a duly executed
            form of transfer)) be entitled to treat the registered holder of
            any Issuer Note as the absolute owner of such Issuer Note for all
            purposes and (save as expressly provided hereunder) make payments
            thereon.

      (b)   Each Agent may in connection with its services hereunder:

            (i)   rely upon the terms of any notice, communication or other
                  document reasonably believed by it to be genuine;

            (ii)  engage and pay for the advice or services of any lawyers or
                  other experts (being an appointee who shall have been
                  previously approved in writing by the Note Trustee) whose
                  advice or services it considers necessary and rely upon any
                  written advice so obtained (and such Agent shall be
                  protected and shall incur no liability as against the Master
                  Issuer in respect of any action taken, or suffered to be
                  taken in good faith, in accordance with such advice except
                  to the extent that such liability arises out of any breach
                  of contract, bad faith, misconduct or negligence on the part
                  of such Agent);

            (iii) assume that the terms of each Global Note Certificate and
                  Individual Note Certificate as issued are correct;

            (iv)  refer any question relating to the ownership of any Note
                  Certificate, or the adequacy or sufficiency of any evidence
                  supplied in connection with the replacement, transfer or
                  exchange of any Note Certificate to the Master Issuer for
                  determination by the Master Issuer and in good faith
                  conclusively rely upon any determination so made; and

            (v)   whenever in the administration of this Agreement it shall
                  deem it desirable that a matter be proved or established
                  prior to taking, suffering or omitting any action hereunder,
                  in the absence of bad faith or negligence or wilful
                  misconduct on its part, accept a certificate signed by any
                  person duly authorised on behalf of the Master Issuer as to
                  any fact or matter prima facie within the knowledge of the
                  Master Issuer as sufficient evidence thereof.

13.2  Provision of Specimen Signatures: The Master Issuer will supply the
      Paying Agents, the Transfer Agent and the Registrar with the names and
      specimen signatures of its Authorised Signatories.

13.3  Extent of Duties: Each Agent shall only be obliged to perform the duties
      set out herein and such other duties as are necessarily incidental
      thereto. No Agent shall (i)

                                      20
<PAGE>

      be under any fiduciary duty towards or have any relationship of agency
      or trust for or with any person other than the Master Issuer and (to the
      extent expressly provided herein only) the Note Trustee (ii) be
      responsible for or liable in respect of the authorisation, validity or
      legality or enforceability of any Issuer Note or any Note Certificate
      (other than in respect of the authentication of Note Certificates by it
      in accordance with this Agreement) or any act or omission of any other
      person including, without limitation, any other Agent (except to the
      extent that such liability arises out of any breach of contract, bad
      faith, misconduct or negligence on the part of any such Agent), (iii) be
      under any obligation towards any person other than the Master Issuer,
      the other Agents and the Note Trustee or (iv) assume any relationship of
      agency or trust for or with any Noteholder except that funds received by
      the Paying Agents for the payment of any sums due in respect of any
      Issuer Notes shall be held by them on trust for the relevant Noteholders
      to the extent required by the Trust Indenture Act until the expiration
      of the relevant prescription period under the Issuer Trust Deed.

13.4  Freedom to Transact: Each Agent may purchase, hold and dispose of
      beneficial interests in an Issuer Note and may enter into any
      transaction (including, without limitation, any depository, trust or
      agency transaction) with the Master Issuer or any holders or owners of
      any Issuer Notes or with any other party hereto in the same manner as if
      it had not been appointed as the agent of the Master Issuer or the Note
      Trustee in relation to the Issuer Notes.

13.5  Indemnity in favour of the Agents: The Master Issuer agrees to indemnify
      each Agent for, and to hold such Agent harmless against, any loss,
      liability or expense incurred by it arising out of, or in connection
      with, its acting as agent of the Master Issuer or the Note Trustee in
      relation to the Issuer Notes provided that such loss, liability and/or
      expense has not arisen as a result of its own fraud, negligence, wilful
      misconduct or breach of contract. No termination of this Agreement shall
      affect the obligations created by this Clause 13.5 (Indemnity in favour
      of the Agents).

13.6  Indemnity in favour of the Master Issuer: Each Agent shall severally
      indemnify the Master Issuer and, for the purposes of Clause 11 (Agents
      to act for Note Trustee), the Note Trustee, against any loss, liability,
      reasonable costs and expenses including any claim, action or demand
      which the Master Issuer or Note Trustee may incur or which may be made
      against it as a result of the breach by such Agent of the terms of this
      Agreement or its negligence, breach of contract, bad faith or wilful
      misconduct or that of its officers or employees including any failure to
      obtain and maintain in existence any consent, authorisation, permission
      or licence required by it for the assumption, exercise and performance
      of its powers and duties hereunder. No termination of this Agreement
      shall affect the obligations created by this Clause 13.6 (Indemnity in
      favour of the Master Issuer).

14.   No Liability for Consequential Loss

      No Agent shall in any event be liable to the Master Issuer or to any
      other party to the Issuer Transaction Documents for any special,
      indirect, punitive or consequential loss or damage of any kind
      whatsoever (including but not limited to lost profits), whether or not
      foreseeable and in each case however caused or arising.

                                      21
<PAGE>

15.   Termination of Appointment

15.1  Resignation: Subject to Clause 15.8 (Limitations on Resignation and
      Revocation), each Paying Agent in respect of any or all Series and
      Classes of Issuer Notes or the Agent Bank, the Registrar or the Transfer
      Agent may resign its appointment upon not less than 60 days' written
      notice to the Master Issuer, the Issuer Cash Manager and the Note
      Trustee to that effect, provided, however, that:

      (a)   if such resignation would otherwise take effect less than 30 days
            before or after the maturity date or other date for redemption of
            any Issuer Notes or any Note Payment Date in relation to any
            Issuer Notes, it shall not take effect until the thirtieth day
            following such date; and

      (b)   in the case of the Registrar, the only remaining Paying Agent with
            its Specified Office in the United Kingdom, the Agent Bank or the
            only remaining Paying Agent with its Specified Office outside the
            United Kingdom, such resignation shall not take effect until a
            successor has been duly appointed in accordance with Clause 15.4
            (Additional and Successor Agents) and notice of such appointment
            has been given to the Noteholders.

15.2  Revocation: Subject to Clause 15.7 (Maintenance of a Paying Agent in the
      European Union) and Clause 15.8 (Limitations on Resignation and
      Revocation), the Master Issuer may at any time with the prior written
      consent of the Note Trustee revoke its appointment of any Agent as its
      agent in relation to the Issuer Notes by not less than 60 days' written
      notice to the Note Trustee and such Agent whose appointment is to be
      revoked, which notice shall expire not less than 30 days before a Note
      Payment Date, provided, however, that in the case of the Registrar, the
      Principal Paying Agent, the Agent Bank or the only remaining Paying
      Agent with its Specified Office outside the United Kingdom, such
      resignation shall not take effect until a successor has been duly
      appointed consistently with Clause 15.4 (Additional and Successor
      Agents) and notice of such appointment has been given to the
      Noteholders.

15.3  Automatic  Termination:  The  appointment of any Agent shall terminate
      forthwith if at any time:

      (a)   such Agent becomes incapable of acting;

      (b)   a secured party takes possession, or a receiver, manager or other
            similar officer is appointed, of the whole or any part of the
            undertaking, assets and revenues of such Agent;

      (c)   such Agent admits in writing its insolvency or inability to pay
            its debts as they fall due or suspends payments of its debts;

      (d)   an administrator or liquidator of such Agent or the whole or any
            part of the undertaking, assets and revenues of such Agent is
            appointed (or application for any such appointment is made);

      (e)   such Agent takes any action for a readjustment or deferment of any
            of its obligations or makes a general assignment or an arrangement
            or composition

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<PAGE>

            with or for the benefit of its creditors or declares a moratorium
            in respect of any of its indebtedness;

      (f)   an order is made or an effective resolution is passed for the
            winding up of such Agent; or

      (g)   any event occurs which has an analogous effect to any of the
            foregoing in relation to such Agent.

      On the occurrence of any of the above, the relevant Agent shall
      forthwith notify the Master Issuer, the Issuer Cash Manager, the Note
      Trustee and the Paying Agents. If the appointment of the Registrar or
      the only remaining Paying Agent with a Specified Office in the United
      Kingdom, the Agent Bank or the only remaining Paying Agent with its
      Specified Office outside of the United Kingdom is terminated in
      accordance with the preceding sentence, the Master Issuer shall
      forthwith appoint a successor in accordance with Clause 15.4 (Additional
      and Successor Agents).

15.4  Additional and Successor Agents: The Master Issuer may with the prior
      written approval of the Note Trustee appoint a successor principal
      paying agent, US paying agent, agent bank or registrar and additional or
      successor transfer agents or paying agents and shall forthwith give
      notice of any such appointment to the continuing Agents, the
      Noteholders, the Issuer Cash Manager and the Note Trustee, whereupon the
      successor or additional agents shall acquire and become subject to the
      same rights and obligations between themselves as if they had entered
      into an agreement in the form mutatis mutandis of this Agreement.

15.5  Agent may appoint Successor: If any Agent gives notice of its
      resignation in accordance with Clause 15.1 (Resignation) and by the
      tenth day before the expiration of such notice a successor agent has not
      been duly appointed in accordance with Clause 15.4 (Additional and
      Successor Agents), such Agent may itself, following such consultation
      with the Master Issuer as is practicable in the circumstances and with
      the prior written approval of the Note Trustee and the Master Issuer
      (provided such failure to appoint was not due to default by the Master
      Issuer), appoint as its successor agent any reputable and experienced
      bank or financial institution and give notice of such appointment to the
      Master Issuer, the Note Trustee, the Issuer Cash Manager, the remaining
      Agents and the Noteholders.

15.6  Rights of Successor Agent: Upon the execution by the Master Issuer and
      any successor agent of an instrument effecting the appointment of a
      successor agent, such successor agent shall, without any further act,
      deed or conveyance, become vested with all the authority, rights,
      powers, trusts, immunities, duties and obligations of its predecessor
      with like effect as if originally named as the relevant agent herein and
      such predecessor, upon payment to it of the pro rata proportion of its
      administration fee and disbursements then unpaid (if any), shall
      thereupon become obliged to transfer, deliver and pay over, and such
      successor agent shall be entitled to receive, all monies, records and
      documents (including any Note Certificates of the relevant class or
      classes of Issuer Notes, if any) held by such predecessor hereunder.

15.7  Maintenance of a Paying Agent in the European Union: Notwithstanding
      Clause 15.1 (Resignation), the Master Issuer undertakes that it will
      ensure that it maintains a paying agent in an EU Member State that will
      not be obliged to withhold or deduct

                                      23
<PAGE>

      tax pursuant to such European Council Directive 2003/48/EC.

15.8  Limitations on Resignation and Revocation: Notwithstanding Clause 15.1
      (Resignation) and Clause 15.2 (Revocation):

      (a)   if at any time there should be only one Paying Agent, no
            resignation by or termination of the appointment of the Paying
            Agent shall take effect until a successor paying agent in respect
            of the affected Series and Class or Classes of Issuer Notes
            approved in writing by the Note Trustee has been appointed on
            terms previously approved in writing by the Note Trustee;

      (b)   no resignation by or termination of the appointment of any Paying
            Agent shall take effect if as a result of such resignation or
            termination there would cease to be a Paying Agent in respect of
            the affected Series and Class or Classes of Issuer Notes having a
            Specified Office in London or New York (as the case may be);

      (c)   no appointment or termination of the appointment of a Paying Agent
            shall take effect unless and until notice thereof shall have been
            given to the relevant Noteholders in accordance with the Issuer
            Conditions;

      (d)   no resignation by or revocation of the appointment of the Agent
            Bank shall take effect until a new Agent Bank having its Specified
            Office in London has been appointed;

      (e)   no resignation by or termination of the appointment of the
            Registrar shall take effect until a new Registrar having its
            Specified Office in London has been appointed; and

      (f)   the appointment of any additional Paying Agent shall be mutatis
            mutandis on the terms and subject to the conditions of this
            Agreement and each of the parties hereto shall co-operate fully to
            do all such further acts and things and execute any further
            documents as may be necessary or desirable to give effect to the
            appointment of such Paying Agent.

15.9  Effect of Resignation, Revocation and Termination: Upon any resignation
      or revocation taking effect under Clause 15.1 (Resignation) or Clause
      15.2 (Revocation) or any termination under Clause 15.3 (Automatic
      Termination), the relevant Agent shall:

      (a)   without prejudice to any accrued liabilities and obligations, be
            released and discharged from any further obligations under this
            Agreement (save that it shall remain entitled to the benefit of,
            and subject to, Clauses 12 (Fees and Expenses), Clause 13 (Terms
            of Appointment) and Clause 15 (Termination of Appointment));

      (b)   repay to the Master Issuer such part of any fee paid to it in
            accordance with Clause 12.1 (Fees) as shall relate to any period
            thereafter;

      (c)   deliver to the Master Issuer and to its successor agent a copy,
            certified as true and up-to-date by an officer of such Agent of
            the records maintained by it pursuant to this Agreement;

                                      24
<PAGE>

      (d)   forthwith transfer all monies and papers (including any unissued
            Note Certificates held by it hereunder) to its successor in that
            capacity and provide reasonable assistance to its successor for
            the discharge by it of its duties and responsibilities hereunder;
            and

      (e)   in the case of any Paying Agent, pay to the successor paying agent
            any amount held by it for payment of principal or interest in
            respect of the relevant Issuer Notes.

15.10 Change of Specified Office: If any Agent shall determine to change its
      Specified Office (which, in the case of each Paying Agent, may only be
      effected within the same city where each Paying Agent currently has its
      Specified Office), it shall give to the Master Issuer and the Note
      Trustee written notice of such determination giving the address of the
      new Specified Office and stating the date on which such change is to
      take effect, which date shall not be less than 30 days after the date of
      such notice, provided that no such notice shall take effect within the
      period of 30 days before or after any Note Payment Date. The Master
      Issuer shall, within 40 days of receipt of such notice (unless the
      appointment is pursuant to a revocation or termination under Clause 15.2
      (Revocation) or Clause 15.3 (Automatic Termination) above on or prior to
      the date of such change), give to the Noteholders notice of such change
      as approved by the Note Trustee and of the address of the Specified
      Office in accordance with the Issuer Conditions but the costs of giving
      such notice shall be borne by such Agent changing its office and not by
      the Master Issuer.

15.11 Merger: Any legal entity into which any Agent is merged or converted or
      any legal entity resulting from any merger or conversion to which such
      Agent is a party shall, to the extent permitted by applicable law, be
      the successor to such Agent without any further formality, whereupon the
      Master Issuer, the Note Trustee, the other Agents and such successor
      shall acquire and become subject to the same rights and obligations
      between themselves as if they had entered into an agreement in the form
      mutatis mutandis of this Agreement. Written notice of any such merger or
      conversion shall forthwith be given by such successor to the Master
      Issuer, the Note Trustee and the other Agents.

16.   Non-Petition and Limited Recourse

16.1  Limited Recourse: Each party hereto agrees that notwithstanding any
      other provisions hereof, all payments to be made by the Master Issuer
      under this Agreement will be payable only from, and to the extent of,
      the sums paid to, or net proceeds recovered by or on behalf of, the
      Master Issuer or the Issuer Security Trustee in respect of the Issuer
      Charged Property less any amount which is required to be paid to any
      other person in priority to or in the same priority as the relevant
      party hereto subject to and in accordance with the Issuer Priority of
      Payments and there will be no other assets of the Master Issuer
      available for any further payments and following the realisation of the
      Issuer Charged Property and the distribution of the proceeds thereof in
      accordance with the Issuer Deed of Charge none of the parties hereto
      shall be entitled to take any further steps against the Master Issuer to
      recover any sums due hereunder but still unpaid and all outstanding
      claims in respect of such sums due but still unpaid shall be
      extinguished. The parties hereto look solely to such sums and proceeds
      and the rights of the Master Issuer in respect of the Issuer Charged
      Property (net as aforesaid) for payments to be made by the Master
      Issuer. The obligations of

                                      25
<PAGE>

      the Master Issuer to make such payments hereunder will be limited to
      such sums and the proceeds of realisation of the Issuer Charged Property
      (net as aforesaid) and the parties hereto will have no further recourse
      in respect thereof.

16.2  Non-Petition: Each of the Agents hereby covenants and agrees with the
      Master Issuer, the Issuer Security Trustee and the Note Trustee that:

      (a)   only the Issuer Security Trustee may enforce the security created
            in favour of the Issuer Security Trustee by the Issuer Deed of
            Charge in accordance with its provisions; and

      (b)   save as provided in the Issuer Deed of Charge, it shall not take
            any steps for the purpose of recovering any sums due under this
            Agreement or enforcing any rights arising out of this Agreement or
            institute against the Master Issuer or join any other person in
            instituting against Master the Issuer any winding-up,
            administration, reorganisation, liquidation, bankruptcy,
            insolvency or other proceedings of the Master Issuer for so long
            as the Issuer Notes are outstanding and until two years and one
            day has elapsed after all amounts outstanding under the Issuer
            Secured Obligations have been paid in full.

16.3  Payment to Issuer Security Trustee: Each of the Agents hereby undertakes
      with the Issuer Security Trustee, the Note Trustee and the Master Issuer
      that if, whether in the liquidation of the Master Issuer or otherwise
      any payment is made to or amount recovered by any Agent otherwise than
      in accordance with the Issuer Deed of Charge, the amount so paid or
      recovered shall be paid by such Agent to the Issuer Security Trustee.

17.   Notices

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

      (a)   in the case of the Master Issuer, to Granite Master Issuer plc,
            c/o Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
            number 020 7606 0643) for the attention of: the Company Secretary
            with a copy to Northern Rock plc, Northern Rock House, Gosforth,
            Newcastle upon Tyne NE3 4PL (facsimile number 0191 213 2203) for
            the attention of the Group Secretary;

      (b)   in the case of the Note Trustee or the Issuer Security Trustee, to
            The Bank of New York (London Branch) at 48th Floor, One Canada
            Square, London E14 5AL (facsimile number 020 7964 6061/6399) for
            the attention of: Global Structured Products Unit (Corporate
            Trust);

                                      26
<PAGE>

      (c)   in the case of the Issuer Cash Manager, to Northern Rock plc,
            Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
            (facsimile number 0191 213 2203) for the attention of the Group
            Secretary;

      (d)   in the case of any Agent, to it at the address or fax number
            specified against its name in Schedule 1 (Specified Offices of the
            Agents) hereto (or in the case of an Agent not originally a party
            hereto, specified by notice to the parties hereto at the time of
            its appointment) for the attention of the person or department
            specified therein,

      or to such other address or facsimile number or for the attention of
      such other person or entity as may from time to time be notified by any
      party to the others by fifteen days prior written notice in accordance
      with the provisions of this Clause 17 (Notices).

18.   Third Party Rights

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

19.   Time of the Essence

      Any date or period specified in this Agreement may be postponed or
      extended by mutual agreement among the parties, but as regards any date
      or period originally fixed or so postponed or extended, time shall be of
      the essence.

20.   Variation and Waiver

      No variation or waiver of this Agreement shall be effective unless it is
      in writing and signed by a duly authorised signatory of each party. No
      single or partial exercise of, or failure or delay in exercising, any
      right under this Agreement shall constitute a waiver or preclude any
      other or further exercise of that or any other right.

21.   Execution in Counterparts; Severability

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

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

22.   Governing Law and Jurisdiction; Process Agent; Appropriate Forum

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

                                      27
<PAGE>

22.2  Jurisdiction: The parties hereto irrevocably agree for the benefit of
      the Master Issuer and the Note Trustee that the courts of England are to
      have jurisdiction to settle any suit, action or proceeding, and to
      settle any disputes which may arise out of or in connection with this
      Agreement and, for such purposes, irrevocably submit to the jurisdiction
      of such courts.

22.3  Process Agent: The US Paying Agent irrevocably and unconditionally
      appoints the Principal Paying Agent at its registered office for the
      time being as its agent for service of process in England in respect of
      any proceedings in respect of this Agreement and undertakes that in the
      event of the Principal Paying Agent ceasing so to act it will appoint
      another person with a registered office in London as its agent for
      service of process.

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

23.   Exclusion of Liability

      The Note Trustee is a party to this Agreement only to receive the
      benefit of the provisions in this Agreement and has no liability under
      this Agreement.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

                                      28
<PAGE>

                                  SCHEDULE 1
                        SPECIFIED OFFICES OF THE AGENTS

The Principal Paying Agent

Citibank, N.A.
Citigroup Centre
Canada Square
Canary Wharf
London E14 5LB

The US Paying Agent

Citibank, N.A.
Agency and Trust
14th Floor, 388 Greenwich Street
New York N.Y. 10013
U.S.A.

The Agent Bank

Citibank, N.A.
Citigroup Centre
Canada Square
Canary Wharf
London E14 5LB

The Registrar

Citibank, N.A.
Citigroup Centre
Canada Square
Canary Wharf
London E14 5LB

The Transfer Agent

Citibank, N.A.
Citigroup Centre
Canada Square
Canary Wharf
London E14 5LB

                                      29
<PAGE>

                                  SCHEDULE 2
     REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND REGISTRATION OF THE
                                 ISSUER NOTES

1.    The Issuer Notes are in their respective Authorised Denominations or in
      such other denominations as the Note Trustee shall determine and notify
      to the relevant Noteholders. Each Issuer Note shall be held in the
      applicable Authorised Holding.

2.    Subject to paragraphs 4, 6 and 11 below, an Issuer Note may be
      transferred by execution of the relevant form of transfer under the hand
      of the transferor or, where the transferor is a corporation, under its
      common seal or under the hand of two of its officers duly authorised in
      writing. Where the form of transfer is executed by an attorney or, in
      the case of a corporation, under seal or under the hand of two of its
      officers duly authorised in writing, a copy of the relevant power of
      attorney certified by a financial institution in good standing or a
      notary public or in such other manner as the Registrar may require or,
      as the case may be, copies certified in the manner aforesaid of the
      documents authorising such officers to sign and witness the affixing of
      the seal must be delivered with the form of transfer. In this Schedule,
      "transferor" shall, where the context permits or requires, include joint
      transferors and shall be construed accordingly.

3.    The Note Certificate issued in respect of an Issuer Note to be
      transferred or exchanged must be surrendered for registration, together
      with a duly completed and executed form of transfer (including any
      certification as to compliance with restrictions on transfer included in
      such form of transfer) at the Specified Office of the Registrar or the
      Transfer Agent, together with such evidence as the Registrar or (as the
      case may be) the Transfer Agent may reasonably require to prove the
      title of the transferor and the authority of the persons who have
      executed the form of transfer. The signature of the person effecting a
      transfer or exchange of an Issuer Note shall conform to any list of duly
      authorised specimen signatures supplied by the holder of such Issuer
      Note or be certified by a financial institution in good standing, notary
      public or in such other manner as the Registrar or the Transfer Agent
      may require.

4.    No Noteholder may require the transfer of an Issuer Note to be
      registered during the period of 15 calendar days ending on a Note
      Payment Date in respect of such Issuer Note.

5.    No Noteholder which has executed a Form of Proxy in relation to any
      Meeting may require the transfer of an Issuer Note covered by such Form
      of Proxy to be registered until the earlier of the conclusion of the
      Meeting and its adjournment for want of quorum.

6.    The executors or administrator of a deceased holder of an Issuer Note
      (not being one of several joint holders) and, in the case of the death
      of one or more of several joint holders, the survivor or survivors of
      such joint holders, shall be the only persons recognised by the Master
      Issuer as having any title to such Issuer Note.

7.    Any person becoming entitled to any Issuer Notes in consequence of the
      death or bankruptcy of the holder of such Issuer Notes may, upon
      producing such evidence that he holds the position in respect of which
      he proposes to act under this paragraph

                                      30
<PAGE>

      or of his title as the Registrar or the Transfer Agent shall require
      (including legal opinions), become registered himself as the holder of
      such Issuer Notes or, subject to the provisions of these Regulations,
      the Issuer Notes and the relevant Issuer Conditions as to transfer, may
      transfer such Issuer Notes. The Master Issuer, the Transfer Agent and
      the Registrar shall be at liberty to retain any amount payable upon the
      Issuer Notes to which any person is so entitled until such person shall
      be registered as aforesaid or shall duly transfer such Issuer Notes.

8.    Unless otherwise required by him and agreed by the Master Issuer and the
      Registrar, the holder of any Issuer Notes shall be entitled to receive
      only one Note Certificate in respect of his holding.

9.    The joint holders of any Issuer Note shall be entitled to one Note
      Certificate only in respect of their joint holding which shall, except
      where they otherwise direct, be delivered to the joint holder whose name
      appears first in the Register in respect of the joint holding.

10.   Where there is more than one transferee (to hold other than as joint
      holders), separate forms of transfer (obtainable from the specified
      office of the Registrar or the Transfer Agent) must be completed in
      respect of each new holding.

11.   A holder of Issuer Notes may transfer all or part of his holding
      provided that both the principal amount of Issuer Notes transferred and
      the principal amount of the balance transferred are in an amount equal
      to an Authorised Denomination. Where a holder of Issuer Notes has
      transferred part only of his holding comprised therein, there shall be
      delivered to him a new Note Certificate in respect of the balance of
      such holding.

12.   The Master Issuer, the Transfer Agent and the Registrar shall, save in
      the case of the issue of replacement Issuer Notes pursuant to the Issuer
      Conditions, make no charge to the holders for the registration of any
      holding of Issuer Notes or any transfer thereof or for the issue of any
      Issuer Notes or for the delivery thereof at the Specified Office of the
      Transfer Agent or the Registrar or by uninsured post to the address
      specified by the holder, but such registration, transfer, issue or
      delivery shall be effected against such indemnity from the holder or the
      transferee thereof as the Registrar or the Transfer Agent may require in
      respect of any tax or other duty of whatever nature which may be levied
      or imposed in connection with such registration, transfer, issue or
      delivery.

13.   Provided a transfer of an Issuer Note is duly made in accordance with
      all applicable requirements and restrictions upon transfer and the Note
      Certificate(s) issued in relation to such Issuer Note transferred are
      presented to the Transfer Agent and/or the Registrar in accordance with
      the Issuer Paying Agency and Agent Bank Agreement and these Regulations
      and subject to unforeseen circumstances beyond the control of the
      Transfer Agent or the Registrar arising, the Transfer Agent and the
      Registrar will, within five business days of the request for transfer
      being duly made, deliver at its Specified Office or despatch to the
      transferee by uninsured post (at the request and risk of the transferee)
      to such address as the transferee entitled to the Issuer Notes in
      relation to which such Note Certificate is issued may have specified, a
      Note Certificate in respect of which entries have been made in the
      Register, all formalities complied with and the name of the transferee
      completed on the Note Certificate by or on behalf of the Registrar; and,
      for the purposes of this paragraph, "business day"

                                      31
<PAGE>

      means a day (other than a Saturday or a Sunday) on which commercial
      banks are open for business (including dealings in foreign currencies)
      in the cities in which the Registrar and the Transfer Agent have their
      respective Specified Office.

14.   No transfer may be effected unless:

      (a)   such Issuer Note is transferred in a transaction that does not
            require registration under the Securities Act and is not in
            violation of the United States Investment Company Act of 1940;

      (b)   such transfer is effected in accordance with the provision of any
            restrictions on transfer specified in the legends (if any) set
            forth on the face of the Note Certificate issued in relation to
            such Issuer Note;

      (c)   the transferee delivers to the Registrar or the Transfer Agent a
            form of transfer (including any certification as to compliance
            with restrictions on transfer included in such form of transfer)
            endorsed on the Note Certificate issued in relation to such Issuer
            Note; and

      (d)   if the Master Issuer so requests, the Transfer Agent and the
            Registrar receive an opinion of counsel satisfactory to all of
            them.

15.   Except for in connection with the issue of replacement Note Certificates
      pursuant to Clause 6 (Replacement Note Certificates) hereof, no charge
      shall be made to the Noteholders in connection with, inter alia,

      (a)   the registration of any holding of Issuer Notes; or

      (b)   the transfer of Issuer Notes subject to any registration,
            transfer, issue or delivery which may be effected against an
            indemnity from the Noteholder or transferee as any relevant Paying
            Agent or, as the case may be, the Transfer Agent may require in
            respect of any tax or other duty levied or imposed in connection
            with such registration, transfer, issue or delivery.

16.   If Issuer Notes are issued upon the transfer, exchange or replacement of
      Note Certificates not bearing the Regulation S Legend (as defined
      below), the Note Certificates so issued shall not bear the Regulation S
      Legend. If Note Certificates are issued upon the transfer, exchange or
      replacement of Note Certificates bearing the Regulation S Legend, the
      Note Certificates so issued shall bear the Regulation S Legend. Each
      Note Certificate issued in exchange therefor shall bear a legend (the
      "Regulation S Legend") substantially in the form of Schedule 2 to the
      Issuer Trust Deed.

17.   In addition to the Regulation S Legend, all Reg S Notes denominated in
      US Dollars shall bear the following legend:

      THIS NOTE MAY NOT BE OFFERED, SOLD, TRANSFERRED OR DELIVERED AS PART OF
      ITS INITIAL DISTRIBUTION OR AT ANY TIME THEREAFTER, DIRECTLY OR
      INDIRECTLY, TO INDIVIDUALS OR LEGAL ENTITIES WHO OR WHICH ARE
      ESTABLISHED, DOMICILED OR HAVE THEIR RESIDENCE IN THE NETHERLANDS
      ("DUTCH RESIDENTS") OTHER THAN TO THE FOLLOWING ENTITIES, PROVIDED THAT
      SUCH ENTITIES TRADE OR

                                      32
<PAGE>

      INVEST IN SECURITIES IN THE CONDUCT OF A BUSINESS OR PROFESSION (THE
      FOLLOWING SUCH ENTITIES HEREINAFTER REFERRED TO AS "PROFESSIONAL MARKET
      PARTIES" OR "PMPS") AND PROVIDED FURTHER THAT THEY ACQUIRE THE NOTES FOR
      THEIR OWN ACCOUNT:

(I)   BANKS, INSURANCE COMPANIES, SECURITIES FIRMS, COLLECTIVE INVESTMENT
      INSTITUTIONS OR PENSION FUNDS THAT ARE SUPERVISED OR LICENSED UNDER
      DUTCH LAW;

(II)  BANKS OR SECURITIES FIRMS LICENSED OR SUPERVISED IN A EUROPEAN ECONOMIC
      AREA MEMBER STATE (OTHER THAN THE NETHERLANDS) AND REGISTERED WITH THE
      DUTCH CENTRAL BANK (DE NEDERLANDSCHE BANK N.V.: DNB) OR THE DUTCH
      AUTHORITY FOR THE FINANCIAL MARKETS (STICHTING AUTHORITEIT FINANCIELE
      MARKTEN) ACTING THROUGH A BRANCH OFFICE IN THE NETHERLANDS;

(III) NETHERLANDS COLLECTIVE INVESTMENT INSTITUTIONS WHICH OFFER THEIR SHARES
      OR PARTICIPATIONS EXCLUSIVELY TO PROFESSIONAL INVESTORS AND ARE NOT
      REQUIRED TO BE SUPERVISED OR LICENSED UNDER DUTCH LAW;

(IV)  THE DUTCH GOVERNMENT (DE STAAT DER NEDERLANDEN), DNB, DUTCH REGIONAL,
      LOCAL OR OTHER DECENTRALISED GOVERNMENTAL INSTITUTIONS, OR ANY
      INTERNATIONAL TREATY ORGANISATIONS AND SUPRANATIONAL
      ORGANISATIONS LOCATED IN THE NETHERLANDS;

(V)   NETHERLANDS ENTERPRISES OR ENTITIES WITH TOTAL ASSETS OF AT LEAST
      (euro)500,000,000 (OR THE EQUIVALENT THEREOF IN ANOTHER CURRENCY)
      ACCORDING TO THEIR BALANCE SHEET AT THE END OF THE FINANCIAL YEAR
      PRECEDING THE DATE THEY PURCHASE OR ACQUIRE THE NOTES;

(VI)  NETHERLANDS ENTERPRISES, ENTITIES OR INDIVIDUALS WITH NET EQUITY (EIGEN
      VERMOGEN) OF AT LEAST (euro)10,000,000 (OR THE EQUIVALENT THEREOF IN
      ANOTHER CURRENCY) ACCORDING TO THEIR BALANCE SHEET AT THE END OF THE
      FINANCIAL YEAR PRECEDING THE DATE THEY PURCHASE OR ACQUIRE THE NOTES AND
      WHO OR WHICH HAVE BEEN ACTIVE IN THE FINANCIAL MARKETS ON AVERAGE TWICE
      A MONTH OVER A PERIOD OF AT LEAST TWO CONSECUTIVE YEARS PRECEDING SUCH
      DATE;

(VII) NETHERLANDS SUBSIDIARIES OF THE ENTITIES REFERRED TO UNDER (I) ABOVE
      PROVIDED SUCH SUBSIDIARIES ARE SUBJECT TO PRUDENTIAL SUPERVISION;

(VIII) NETHERLANDS ENTERPRISES OR ENTITIES THAT HAVE A CREDIT RATING FROM AN
      APPROVED RATING AGENCY OR WHOSE SECURITIES HAVE SUCH A
      RATING; AND

                                      33
<PAGE>

(IX)  SUCH OTHER NETHERLANDS ENTITIES DESIGNATED BY THE COMPETENT NETHERLANDS
      AUTHORITIES AFTER THE DATE HEREOF BY ANY AMENDMENT OF THE APPLICABLE
      REGULATIONS."

                                      34
<PAGE>

                                  SCHEDULE 3
                     FORM OF CALCULATION AGENCY AGREEMENT

                                   Dated [o]

                           GRANITE MASTER ISSUER PLC
                               as Master Issuer

                             THE BANK OF NEW YORK
                                as Note Trustee

                                      and

                                      [o]
                             as Calculation Agent

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

                         CALCULATION AGENCY AGREEMENT

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

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

<PAGE>

                                   CONTENTS

1.    APPOINTMENT OF THE CALCULATION AGENT.............................1

2.    DUTIES OF CALCULATION AGENT......................................1

3.    EXPENSES.........................................................1

4.    INDEMNITY........................................................1

5.    CONDITIONS OF APPOINTMENT........................................2

6.    TERMINATION OF APPOINTMENT.......................................3

7.    COMMUNICATIONS...................................................5

8.    CHANGE OF NOTE TRUSTEE...........................................5

9.    DESCRIPTIVE HEADINGS AND COUNTERPARTS............................5

10.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999.....................6

11.   GOVERNING LAW....................................................6

SCHEDULE TO THE CALCULATION AGENCY AGREEMENT...........................8

<PAGE>

THIS AGREEMENT is dated [o]

BETWEEN:

(1)   GRANITE MASTER ISSUER PLC (registered number 5250668), a public limited
      company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
      (the "Master Issuer");

(2)   THE BANK OF NEW YORK acting through its office at 48th Floor, One Canada
      Square, London, E14 5AL (acting in its capacity as note trustee, the
      "Note Trustee"); and

(3)   [o] of [o] (the "Calculation Agent", which expression shall include any
      successor calculation agent appointed under this Agreement).

IT IS AGREED:

1.    Appointment Of The Calculation Agent

      The Calculation Agent is appointed, and the Calculation Agent agrees to
      act, as Calculation Agent in respect of each Series of Issuer Notes
      described in the Schedule (the "Relevant Issuer Notes") for the purposes
      set out in Clause 2 and on the terms of this Agreement. The agreement of
      the parties that this Agreement is to apply to each Series of Relevant
      Issuer Notes shall be evidenced by the manuscript annotation and
      signature in counterpart of the Schedule.

2.    Duties Of Calculation Agent

      The Calculation Agent shall in relation to each series of Relevant
      Issuer Notes (each a "Series") perform all the functions and duties
      imposed on the Calculation Agent by the terms and conditions of the
      Relevant Issuer Notes (the "Conditions") including endorsing the
      Schedule appropriately in relation to expenses will be separately agreed
      in relation to each issue of Relevant Issuer Notes.

3.    Expenses

      The arrangements in relation to expenses will be separately agreed in
      relation to each issue of Relevant Issuer Notes.

4.    Indemnity

4.1   The Master Issuer shall indemnify the Calculation Agent against any
      losses, liabilities, costs, claims, actions, demands or expenses
      (together, "Losses") (including, but not limited to, all reasonable
      costs, legal fees, charges and expenses (together, "Expenses") paid or
      incurred in disputing or defending any Losses) which it may incur or
      which may be made against it as a result of or in connection with its
      appointment or the exercise of its powers and duties under this
      Agreement except for any Losses or Expenses resulting from its own
      default, negligence or bad faith or that of its officers, directors or
      employees.

4.2   The Calculation Agent shall indemnify the Master Issuer against any
      Losses and Expenses which the Master Issuer may incur or which may be
      made against the

                                      36
<PAGE>

      Master Issuer as a result of the breach by the Calculation Agent of the
      terms of this Agreement or its default, negligence or bad faith or that
      of its officers, directors or employees or the breach by any of them of
      the terms of this Agreement.

4.3   Except as provided in subclause 4.2 above, the Calculation Agent in
      acting hereunder shall incur no liability in respect of any action
      taken, omitted or suffered to be taken in good faith in reliance upon:

      (a)   the written advice of any lawyer or professional adviser;

      (b)   any instruction, request or order from the Master Issuer or the
            Note Trustee; or

      (c)   any relevant Issuer Note, notice, direction, consent, certificate,
            affidavit, endorsement, assignment, statement, resolution, letter,
            telex, facsimile transaction or other paper or document which it
            reasonably believes to be genuine and signed by the proper party
            or parties.

5.    Conditions Of Appointment

5.1   In acting under this Agreement and in connection with the Relevant
      Issuer Notes, the Calculation Agent shall act solely as an agent of the
      Master Issuer, and, in the circumstances described in sub clause 5.2,
      the Note Trustee and will not assume any obligations towards or
      relationship of agency or trust for or with any of the owners or holders
      of the Relevant Issuer Notes.

5.2   At any time after an Issuer Event of Default or Potential Issuer Event
      of Default shall have occurred and is continuing or the Note Trustee
      shall have received any money from the Master Issuer which it proposes
      to pay under the Issuer Trust Deed to the relevant Noteholders, the Note
      Trustee may:

      (a)   by notice in writing to the Master Issuer and the Calculation
            Agent require the Calculation Agent pursuant to this Agreement to
            act thereafter as Calculation Agent of the Note Trustee in
            relation to payments of such moneys to be made by or on behalf of
            the Note Trustee under the terms of these presents mutatis
            mutandis on the terms provided in this Agreement (save that the
            Note Trustee's liability under any provisions of this Agreement
            for the indemnification, remuneration and payment of out-of-pocket
            expenses of the Calculation Agent shall be limited to the amounts
            for the time being held by the Note Trustee on the trusts of these
            presents relating to the Issuer Notes of the relevant Series and
            available for the purpose) and thereafter to hold all Issuer Notes
            and all sums, documents and records held by it in respect of
            Issuer Notes on behalf of the Note Trustee; or

      (b)   by notice in writing to the Master Issuer require it to make all
            subsequent payments in respect of the Issuer Notes to or to the
            order of the Note Trustee and not to the Principal Paying Agent
            and with effect from the issue of any such notice to the Master
            Issuer and the Group Guarantors.

5.3   In relation to each issue of Relevant Issuer Notes, the Calculation
      Agent shall be obliged to perform the duties and only the duties
      specifically stated in this Agreement and the Issuer Conditions and no
      implied duties or obligations shall be read into this

                                      2
<PAGE>

      Agreement or the Conditions against the Calculation Agent, other than
      the duty to act honestly and in good faith and to exercise the diligence
      of a reasonably prudent expert in comparable circumstances.

5.4   The Calculation Agent may consult with legal and other professional
      advisers and the opinion of the advisers shall be full and complete
      protection in respect of any action taken, omitted or suffered under
      this Agreement in good faith and in accordance with the opinion of the
      advisers.

5.5   The Calculation Agent shall be protected and shall incur no liability in
      respect of any action taken, omitted or suffered in reliance on any
      instruction from the Master Issuer or the Note Trustee or any document
      which it reasonably believes to be genuine and to have been delivered by
      the proper party or on written instructions from the Issuer or the Note
      Trustee.

5.6   The Calculation Agent and any of its officers, directors and employees
      may become the owner of, or acquire any interest in, any Issuer Notes
      (if any) with the same rights that it or he would have had if the
      Calculation Agent were not appointed under this Agreement, and may
      engage or be interested in any financial or other transaction with the
      Master Issuer and may act on, or as depositary, trustee or agent for,
      any committee or body of holders of Issuer Notes or in connection with
      any other obligations of the Master Issuer as freely as if the
      Calculation Agent were not appointed under this Agreement.

6.    Termination Of Appointment

6.1   The Master Issuer may, with the prior written approval of the Note
      Trustee, terminate the appointment of the Calculation Agent at any time
      by giving to the Calculation Agent at least 60 days' prior written
      notice to that effect, provided that, so long as any of the Relevant
      Issuer Notes is outstanding:

      (a)   the notice shall not expire less than 45 days before the date on
            which any calculation is due to be made in respect of any Relevant
            Issuer Notes; and

      (b)   notice shall be given in accordance with the Conditions to the
            holders of the Relevant Issuer Notes at least 45 days before any
            removal of the Calculation Agent.

6.2   Notwithstanding the provisions of subclause 6.1, if at any time:

      (a)   the Calculation Agent becomes incapable of acting, or is adjusted
            bankrupt or insolvent, or files a voluntary petition in bankruptcy
            or makes an assignment for the benefit of its creditors or
            consents to the appointment of an administrator, liquidator or
            administrative or other receiver of all or any substantial part of
            its property, or admits in writing its inability to pay or meet
            its debts as they may mature or suspends payments of its debts, or
            if any order of any court is entered approving any petition filed
            by or against it under the provisions of any applicable bankruptcy
            or insolvency law or if a receiver of it or a substantial part of
            its property is appoint or if any officer takes charge or control
            of the Calculation Agent or of its property or affairs for the
            purpose of rehabilitation, conservation or liquidation; or

                                      3
<PAGE>

      (b)   the Calculation Agent fails duly to perform any function or duty
            imposed on it by the Conditions and this Agreement,

      the Master Issuer, with the prior written approval of the Note Trustee,
      may immediately without notice terminate the appointment of the
      Calculation Agent, in which event notice of the termination shall be
      given to the holders of the Relevant Issuer Notes in accordance with the
      Issuer Conditions as soon as practicable.

6.3   The termination of the appointment of the Calculation Agent under
      subclause 6.1 or 6.2 shall not entitle the Calculation Agent to any
      amount by way of compensation but shall be without prejudice to any
      amount then accrued due.

6.4   The Calculation Agent may resign its appointment under this Agreement at
      any time by giving to the Master Issuer and the Note Trustee at least 90
      days prior written notice to that effect. Following receipt of a notice
      of resignation from the Calculation Agent, the Master Issuer shall
      promptly give notice of the resignation to the holders of the Relevant
      Issuer Notes in accordance with the Issuer Conditions.

6.5   Notwithstanding the provisions of subclauses 6.1, 6.2 and 6.4, so long
      as any of the Relevant Issuer Notes is outstanding, the termination of
      the appointment of the Calculation Agent (whether by the Master Issuer
      or by the resignation of the Calculation Agent) shall not be effective
      unless upon the expiry of the relevant notice a successor Calculation
      Agent approved in writing by the Note Trustee has been appointed. The
      Master Issuer agrees with the Calculation Agent that if, by the day
      falling 10 days before the expiry of any notice under subclause 6.4, the
      Master Issuer has not appointed a replacement Calculation Agent approved
      in writing by the Note Trustee, the Calculation Agent shall be entitled,
      on behalf of the Master Issuer to appoint as a successor Calculation
      Agent in its place a reputable financial institution of good standing
      which the Master Issuer and the Note Trustee shall approve.

6.6   Upon its appointment becoming effective, a successor Calculation Agent
      shall without further action, become vested with all the authority,
      rights, powers, duties and obligations of its predecessor with the same
      effect as if originally named as the Calculation Agent under this
      Agreement.

6.7   If the appointment of the Calculation Agent under this Agreement is
      terminated (whether by the Master Issuer or by the resignation of the
      Calculation Agent), the Calculation Agent shall on the date on which the
      termination takes effect deliver to the successor Calculation Agent any
      records concerning the Relevant Issuer Notes maintained by it (except
      those documents and records which it is obliged by law or regulation to
      retain or not to release), but shall have no other duties or
      responsibilities under this Agreement.

6.8   Any corporation into which the Calculation Agent may be merged or
      converted, or any corporation with which the Calculation Agent may be
      consolidated, or any corporation resulting from any merger, conversion
      or consolidation to which the Calculation Agent shall be a party, or any
      corporation to which the Calculation Agent shall sell or otherwise
      transfer all or substantially all of its assets shall, on the date when
      the merger, consolidation or transfer becomes effective and to the
      extent permitted by any applicable laws, becomes the successor
      Calculation Agent under this Agreement without the execution or fling of
      any paper or any further act on the part of

                                      44
<PAGE>

      any of the parties to this Agreement, unless otherwise required by the
      Master Issuer and after the said effective date all references in this
      Agreement to the Calculation Agent shall be deemed to be references to
      such successor corporation. Written notice of any such merger,
      conversion, consolidation or transfer shall immediately be given to the
      Master Issuer, the Note Trustee, the Principal Paying Agent and the
      Rating Agencies by the Calculation Agent.

7.    Communications

7.1   All communications shall be by telex, fax or letter delivered by hand.
      Each communication shall be made to the relevant party at the telex
      number, fax number or address and marked for the attention of the person
      or department from time to time specified in writing by that party to
      the others for the purpose. The initial telex number, fax number and
      person or department so specified by each party are set out in Clause 17
      of the Issuer Paying Agent and Agent Bank Agreement or, in the case of
      the Calculation Agent, on the signature page of this Agreement.

7.2   A communication shall be deemed received (if by telex) when a confirmed
      answerback is received at the end of the transmission, (if by fax) when
      an acknowledgement of receipt is received or (if by letter) when
      delivered, in each case in the manner required by this clause. However,
      if a communication is received after business hours on any business day
      or on a day which is not a business day in the place of receipt it shall
      be deemed to be received and become effective at the opening of business
      on the next business day in the place of receipt. Every communication
      shall be irrevocable save in respect of any manifest error in it.

8.    Change Of Note Trustee

8.1   If there is any change in the identity of the Note Trustee in accordance
      with the Issuer Trust Deed, the parties of this Agreement shall execute
      such documents and take such action as the successor Note Trustee and
      the outgoing Note Trustee may reasonably require for the purpose of
      vesting in the successor Note Trustee the rights of the outgoing Note
      Trustee under this Agreement.

8.2   It is hereby acknowledged and agreed that by its execution of this
      Agreement the Note Trustee shall not assume or have any obligations or
      liabilities to any of the other parties hereto under this Agreement and
      that the Note Trustee has agreed to become a party to this Agreement for
      the purpose only of taking the benefit of this Agreement and agreeing to
      amendments thereto. Any liberty or right which may be exercised or any
      determination which may be made under this Agreement by the Note Trustee
      may be exercised or made in the Note Trustee's absolute discretion
      without any obligation to give reasons therefor, and the Note Trustee
      shall not be responsible for any Liability occasioned by so acting but
      subject always to the provisions of clause 18 of the Issuer Trust Deed.

9.    Descriptive Headings And Counterparts

9.1   The descriptive headings in this Agreement are for convenience of
      reference only and shall not define or limit the provisions hereof.

9.2   This Agreement may be executed in any number of counterparts, and this
      has the

                                      55
<PAGE>

      same effect as if the signatures on the counterparts were on a single
      copy of this Agreement.

10.   Non-Petition and Limited Recourse

10.1  Limited Recourse: Each party hereto agrees that notwithstanding any
      other provisions hereof, all payments to be made by the Master Issuer
      under this Agreement will be payable only from, and to the extent of,
      the sums paid to, or net proceeds recovered by or on behalf of, the
      Master Issuer or the Issuer Security Trustee in respect of the Issuer
      Charged Property less any amount which is required to be paid to any
      other person in priority to or in the same priority as the relevant
      party hereto subject to and in accordance with the Issuer Priority of
      Payments and there will be no other assets of the Master Issuer
      available for any further payments and following the realisation of the
      Issuer Charged Property and the distribution of the proceeds thereof in
      accordance with the Issuer Deed of Charge none of the parties hereto
      shall be entitled to take any further steps against the Master Issuer to
      recover any sums due hereunder but still unpaid and all outstanding
      claims in respect of such sums due but still unpaid shall be
      extinguished. The parties hereto look solely to such sums and proceeds
      and the rights of the Master Issuer in respect of the Issuer Charged
      Property (net as aforesaid) for payments to be made by the Master
      Issuer. The obligations of the Master Issuer to make such payments
      hereunder will be limited to such sums and the proceeds of realisation
      of the Issuer Charged Property (net as aforesaid) and the parties hereto
      will have no further recourse in respect thereof.

10.2  Non-Petition: The Calculation Agent hereby covenants and agrees with the
      Master Issuer, the Issuer Security Trustee and the Note Trustee that:

      (a)   only the Issuer Security Trustee may enforce the security created
            in favour of the Issuer Security Trustee by the Issuer Deed of
            Charge in accordance with its provisions; and

      (b)   save as provided in the Issuer Deed of Charge, it shall not take
            any steps for the purpose of recovering any sums due under this
            Agreement or enforcing any rights arising out of this Agreement or
            institute against the Master Issuer or join any other person in
            instituting against Master the Issuer any winding-up,
            administration, reorganisation, liquidation, bankruptcy,
            insolvency or other proceedings of the Master Issuer for so long
            as the Issuer Notes are outstanding and until two years and one
            day has elapsed after all amounts outstanding under the Issuer
            Secured Obligations have been paid in full.

11.   Contracts (Rights Of Third Parties) Act 1999

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

12.   Governing Law

      This Agreement is governed by, and shall be construed in accordance
      with, the laws of England.

                                      66
<PAGE>

THIS AGREEMENT has been entered into on the date stated at the beginning of
this Agreement.

The Master Issuer

Executed by
GRANITE MASTER ISSUER PLC
as follows:
Signed for and on its behalf by one
of its duly authorised
attorneys/signatories                     By_______________________________
                                            Duly Authorised Attorney/Signatory

                                          Name_____________________________

The Note Trustee

Executed by
THE BANK OF NEW YORK
as follows:
Signed for and on its behalf by one
of its duly authorised
attorneys/signatories                     By________________________________
                                            Duly Authorised Attorney/Signatory

                                          Name_____________________________

The Calculation Agent

Executed by
[o]
as follows:                               By________________________________
[o]                                         Duly Authorised Attorney/Signatory

                                          Name______________________________

[Address of Calculation Agent]
Telephone Number: [o]
Fax Number:       [o]

                                      7
<PAGE>

                SCHEDULE TO THE CALCULATION AGENCY AGREEMENT

------------------------------------------------------------------------------
Series number    Issue Date     Maturity Date   Title and      Annotation by
                                                Nominal Amount Calculation
                                                               Agent/Issuer
------------------------------------------------------------------------------

                                      8
<PAGE>

                                EXECUTION PAGE

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

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

Name:

as Agent Bank, Principal Paying Agent, Registrar and Transfer Agent
EXECUTED for and on behalf of                   )
CITIBANK, N.A.                                  )
by                                              )

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

Name:

as US Paying Agent

EXECUTED for and on behalf of                   )
CITIBANK N.A.                                   )
by                                              )

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

Name:

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

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

Name:

                                      9

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