Document:

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                                                                    Exhibit 10.1

(MULTICURRENCY -- CROSS BORDER)

                                     ISDA(R)
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                                  dated as of -

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

      Accordingly, the parties agree as follows: --

1.    INTERPRETATION

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

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

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

2.    OBLIGATIONS

      (a) GENERAL CONDITIONS.

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

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

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

      (b) CHANGE OF ACCOUNT. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or

       Copyright (C) 1992 by International Swap Dealers Association, Inc.
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delivery to which such change applies unless such other party gives timely
notice of a reasonable objection to such change.

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

            (i)   in the same currency; and

            (ii)  in respect of the same Transaction,

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

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

      (d) DEDUCTION OR WITHHOLDING FOR TAX.

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

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

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

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

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

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

                        (B)   the failure of a representation made by Y pursuant
                              to Section 3(f) to be accurate and true unless
                              such failure would not have occurred but for (I)
                              any action taken by a taxing authority, or brought
                              in a court of

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                              competent jurisdiction, on or after the date on
                              which a Transaction is entered into (regardless of
                              whether such action is taken or brought with
                              respect to a party to this Agreement) or (II) a
                              Change in Tax Law.

            (ii)  LIABILITY. If: --

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

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

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

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

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

3.    REPRESENTATIONS

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

      (a)   BASIC REPRESENTATIONS.

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

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

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

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

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

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

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

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

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

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

4.    AGREEMENTS

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

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

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

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

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

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

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

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

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

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

5.    EVENTS OF DEFAULT AND TERMINATION EVENTS

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

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

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

            (iii) CREDIT SUPPORT DEFAULT.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            (iv)  CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger" is
                  specified in the Schedule as applying to the party, such party
                  ("X"), any Credit Support Provider of X or any applicable
                  Specified Entity of X consolidates or amalgamates with, or
                  merges with or into, or transfers all or substantially all its
                  assets to, another entity and such action does

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                  not constitute an event described in Section 5(a)(viii) but
                  the creditworthiness of the resulting, surviving or transferee
                  entity is materially weaker than that of X, such Credit
                  Support Provider or such Specified Entity, as the case may be,
                  immediately prior to such action (and, in such event, X or its
                  successor or transferee, as appropriate, will be the Affected
                  Party); or

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

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

6.    EARLY TERMINATION

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

      (b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

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

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

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

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

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

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<PAGE>   9
            (iv)  RIGHT TO TERMINATE. If: --

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

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

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

      (c)   EFFECT OF DESIGNATION.

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

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

      (d)   CALCULATIONS.

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

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

      (e) PAYMENTS ON EARLY TERMINATION. If an Early Termination Date occurs,
the following provisions shall apply based on the parties' election in the
Schedule of a payment measure, either "Market Quotation" or "Loss", and a
payment method, either the "First Method" or the "Second Method". If the parties
fail to designate a payment measure or payment method in the Schedule, it will
be deemed that "Market Quotation" or the "Second

                                      -9-
<PAGE>   10
Method", as the case may be, shall apply. The amount, if any, payable in respect
of an Early Termination Date and determined pursuant to this Section will be
subject to any Set-off.

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

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

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

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

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

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

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

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

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

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

                                      -10-
<PAGE>   11
                              party with the higher Loss ("X") and the Loss of
                              the party with the lower Loss ("Y").

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

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

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

7.    TRANSFER

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

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

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

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

8.    CONTRACTUAL CURRENCY

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

      (b) JUDGMENTS. To the extent permitted by applicable law, if any judgment
or order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of

                                      -11-
<PAGE>   12
exchange at which the Contractual Currency is converted into the currency of the
judgment or order for the purposes of such judgment or order and the rate of
exchange at which such party is able, acting in a reasonable manner and in good
faith in converting the currency received into the Contractual Currency, to
purchase the Contractual Currency with the amount of the currency of the
judgment or order actually received by such party. The term "rate of exchange"
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.

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

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

9.    MISCELLANEOUS

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

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

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

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

      (e) COUNTERPARTS AND CONFIRMATIONS.

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

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

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

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

                                      -12-
<PAGE>   13
10.   OFFICES; MULTIBRANCH PARTIES

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

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

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

11.   EXPENSES

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

12.   NOTICES

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

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

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

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

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

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

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

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

13.   GOVERNING LAW AND JURISDICTION

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

                                      -13-
<PAGE>   14
      (b) JURISDICTION. With respect to any suit, action or proceedings relating
to this Agreement ("Proceedings"), each party irrevocably: --

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

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

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

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

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

14.   DEFINITIONS

      As used in this Agreement: --

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

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

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

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

      "APPLICABLE RATE" means: --

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

                                      -14-
<PAGE>   15
      (b) in respect of an obligation to pay an amount under Section 6(e) of
either party from and after the date (determined in accordance with Section
6(d)(ii)) on which that amount is payable, the Default Rate;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -15-
<PAGE>   16
      "LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

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

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

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

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

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

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

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

                                      -16-
<PAGE>   17
      "SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to
be made under Section 2(a)(i) with respect to a Transaction.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -17-
<PAGE>   18
be customary for the determination of such a rate for the purchase of such Other
Currency for value on the relevant Early Termination Date or that later date.
The foreign exchange agent will, if only one party is obliged to make a
determination under Section 6(e), be selected in good faith by that party and
otherwise will be agreed by the parties.

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

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

      "UNPAID AMOUNTS" owing to any party means, with respect to an Early
Termination Date, the aggregate of (a) in respect of all Terminated
Transactions, the amounts that became payable (or that would have become payable
but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination
Date and (b) in respect of each Terminated Transaction, for each obligation
under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii))
required to be settled by delivery to such party on or prior to such Early
Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market value of that which was (or would have
been) required to be delivered as of the originally scheduled date for delivery,
in each case together with (to the extent permitted under applicable law)
interest, in the currency of such amounts, from (and including) the date such
amounts or obligations were or would have been required to have been paid or
performed to (but excluding) such Early Termination Date, at the Applicable
Rate. Such amounts of interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined by the
party obliged to make the determination under Section 6(e) or, if each party is
so obliged, it shall be the average of the Termination Currency Equivalents of
the fair market values reasonably determined by both parties.

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

-                                                  Public Credit and
(Name of Party)                                    Repackaged
                                                   Securities(SM) (PCARS)(SM)
                                                   Trust Series -

By:___________________________                     By:_________________________
   Name:                                              Name:
   Title:                                             Title:
   Date:                                              Date:

                                      -18-
<PAGE>   19

                                     ISDA(R)
                  International Swap Dealers Association, Inc.

                                    SCHEDULE
                                     TO THE
                                MASTER AGREEMENT

                                  dated as of -
                                     between
                                        -
                                   ("Party A")
                                       and
      Public Credit and Repackaged Securities(SM) (PCARS)SM TRUST SERIES -
                                   ("Party B")

Part 1.  TERMINATION PROVISIONS.

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

         Section 5(a)(v), none specified
         Section 5(a)(vi), none specified
         Section 5(a)(vii), none specified
         Section 5(b)(iv), none specified

         and in relation to Party B for the purpose of: --
         Section 5(a)(v), none specified
         Section 5(a)(vi), none specified
         Section 5(a)(vii), none specified
         Section 5(b)(iv), none specified

(b)      "SPECIFIED TRANSACTION" means, in lieu of the meaning specified in
         Section 14, any contract or transaction (whether or not documented
         under or effected pursuant to a master agreement) now existing or
         hereafter entered into between Party A, any Credit Support Provider of
         Party A or any Affiliate of Party A, on the one hand, and Party B, any
         Credit Support Provider of Party B or any Affiliate of Party B, on the
         other hand; provided, however, that "Specified Transaction" shall
         exclude any contract or transaction for Specified Indebtedness and any
         securities repurchase or reverse repurchase agreement or similar
         transaction.

(c)      "FAILURE TO PAY OR DELIVER", "BREACH OF AGREEMENT", "CREDIT SUPPORT
         DEFAULT" "MISREPRESENTATION", "DEFAULT UNDER SPECIFIED TRANSACTION" and
         "CROSS-DEFAULT": Section 5(a)(i) is amended by deleting the words "if
         such failure is not remedied on or before the third Local Business Day
         after notice of such failure is given to the party." Section 5(a)(ii),
         (iv), (v) and (vi) shall not apply to Party A or Party B (provided that
         a default by Party B under a Specified Transaction may independently
         give rise to a Trust Wind Up Event under the terms of the Trust
         Agreement dated - between Credit and Repackaging Vehicle Corporation,
         as depositor, and Wells Fargo Bank Minnesota, National Association, as
         trustee, with respect to Party B (the "Trust Agreement")). Section
         5(a)(iii) shall not apply to Party B.

(d)      "BANKRUPTCY". Section 5(a)(vii)(9) is amended by inserting the word
         "formal" between the words "any" and "acting", and deleting the words
         "in furtherance of, or". In addition, with respect to Party B only,
         Section 5(a)(vii) shall apply with the following amendments:

         (i)  Section 5(a)(vii)(2) shall not apply;

                                      S-1
<PAGE>   20
         (ii) Section 5(a)(vii)(3) shall apply with the words "the
         Certificateholders" substituted for "its creditors"; and

         (iii) Sections 5(a)(vii)(6) and (7) shall apply with the words "assets
         comprising the property of Party B, otherwise than in accordance with
         the Trust Agreement" substituted for "all or substantially all its
         assets".

(e)      "TAX EVENT UPON MERGER"; "CREDIT EVENT UPON MERGER": Sections 5(b)(iii)
         and 5(b)(iv) shall not apply to Party A or Party B.

(f)      EARLY TERMINATION. For purposes of Section 6(a), each Transaction shall
         be deemed to be "outstanding" until all obligations (including payment,
         delivery and exchange obligations) in respect of such Transaction have
         been fully discharged and satisfied. The "AUTOMATIC EARLY TERMINATION"
         provisions of Section 6(a) shall not apply to Party A or Party B;
         provided, however, that in the case of any Event of Default of a type
         specified in Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent
         analogous thereto, (8), in each case that is governed by a system of
         laws that does not permit termination of all outstanding Transactions
         to take place upon or after the occurrence of such Event of Default in
         accordance with the terms of this Agreement, then the Automatic Early
         Termination provisions of Section 6(a) shall apply to Party A and Party
         B.

(g)      PAYMENTS ON EARLY TERMINATION. "Second Method and Market Quotation"
         shall apply for purposes of Section 6(e); provided that, if the Early
         Termination Date results solely from an Event of Default or Termination
         Event with respect to which Party A is the Defaulting Party or Affected
         Party, as the case may be, then, notwithstanding Part 5(f) below, any
         payment otherwise due from Party B to Party A pursuant to Section 6(e)
         shall be subordinated in right of payment to any and all claims by
         Certificateholders (as defined in the Trust Agreement) against Party B
         under the Trust Agreement.

(h)      "TERMINATION CURRENCY" means USD.

(i)      ADDITIONAL TERMINATION EVENT shall apply. Each of the following shall
         constitute an Additional Termination Event:

         (i) TRUST WIND-UP EVENT. A Trust Wind-Up Event (as defined in the Trust
         Agreement) shall occur. In this case, all Transactions shall be
         Affected Transactions. In the case of any Trust Wind-Up Event of a type
         specified in clause (a), (b), (c), (d), (h), (i), (j), (k) or (l) of
         Section 9.01 of the Standard Terms included in the Trust Agreement,
         Party B shall be the Affected Party. In the case of any Trust Wind-Up
         Event of a type specified in clause (e), (f) and (g) of Section 9.01 of
         the Standard Terms included in the Trust Agreement, Party A shall be
         the Affected Party.

         (ii) SECURITY DEFAULT. A Security Default (as defined in the Trust
         Agreement) shall occur. In this case, unless otherwise provided in the
         related Confirmation, (A) only the Transaction or Transactions related
         to the Security (as defined in the Trust Agreement) to which such
         Security Default relates shall be an Affected Transaction or Affected
         Transactions and (B) Party B shall be the Affected Party.

         (iii) DISQUALIFIED SECURITY. A Security related to a Transaction shall
         become a Disqualified Security (as defined in the Trust Agreement). In
         this case, unless otherwise provided in the related Confirmation, (A)
         only the Transaction or Transactions related to such Disqualified
         Security shall be an Affected Transaction or Affected Transactions and
         (B) Party B shall be the Affected Party.

         (iv) DISQUALIFIED TRANSACTION. Any Transaction shall become a
         Disqualified Transaction (as defined in the Trust Agreement). In this
         case, unless otherwise provided in the related Confirmation, (A) only
         such Disqualified Transaction shall be an Affected Transaction and (B)
         Party A shall be the Affected Party; provided that, in the case of any
         Credit Derivative Transaction (as defined in the 1999 ISDA Credit
         Derivatives Definitions) becoming a Disqualified Transaction as a
         result of the Deliverable Obligation (as defined in the 1999 ISDA
         Credit Derivatives Definitions) becoming a Disqualified Security, Party
         B shall be the Affected Party.

                                      S-2
<PAGE>   21
PART 2   TAX REPRESENTATIONS.

(a)      PAYER TAX REPRESENTATIONS. For purposes of Section 3(e), each of Party
         A and Party B makes the following representation: --

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

                  (i) the accuracy of any representation made by the other party
                  pursuant to Section 3(f);

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

                  (iii) the satisfaction of the agreement of the other party
                  contained in Section 4(d);

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

(b)      PAYEE TAX REPRESENTATIONS. None.

PART 3.  AGREEMENT TO DELIVER DOCUMENTS.  For purposes of this Agreement, each
         party shall deliver the following documents, as applicable:

<TABLE>
<CAPTION>
 PARTY REQUIRED TO DELIVER                                           DATE BY WHICH TO BE            COVERED BY SECTION 3(D)
         DOCUMENT                FORM/DOCUMENT/CERTIFICATE                DELIVERED                     REPRESENTATION
<S>                             <C>                              <C>                                <C>
Party A and Party B             Either (1) a signature           The earlier of the fifth                     Yes
                                booklet containing a             Business Day after the
                                secretary's certificate and      Trade Date of the first
                                resolutions ("authorizing        Transaction or upon
                                resolutions") authorizing        execution of this Agreement
                                the party to enter into          and as deemed necessary for
                                derivatives transactions of      any further documentation.
                                the type contemplated by
                                the parties or (2) a
                                secretary's certificate,
                                authorizing resolutions and
                                incumbency certificate for
                                such party and any Credit
                                Support Provider of such
                                party reasonably
                                satisfactory in form and
                                substance to the other
                                party.

Party B                         Certified copy of the Trust      As soon as practicable                       Yes
                                Agreement.                       after the execution of this
                                                                 Agreement.

Party B                         Certified copies of              As soon as practicable                       Yes
                                documents evidencing Party       after the execution of
                                B's capacity to execute          this Agreement.
                                this Agreement, each
                                Confirmation and any Credit
                                Support Document (if
                                applicable) and to perform
                                its obligations hereunder
                                and thereunder.

Party B                         A written opinion of legal       Upon execution of this                       No
                                counsel to Party B,              Agreement and as deemed
                                reasonably satisfactory in       necessary for any further
                                form and substance to Party      documentation.
                                A.
</TABLE>

                                      S-3
<PAGE>   22
<TABLE>
<S>                             <C>                              <C>                                <C>

Party A and Party B             Such other documents as the      Upon request.                                No
                                other party may reasonably
                                request.
</TABLE>

PART 4.  MISCELLANEOUS.

(a)      ADDRESSES FOR NOTICES.  For purposes of Section 12(a): --

         (i)      Address for notices or communications to Party A: --

                  -

                  Attention: -

                  Facsimile No.: - Telephone No.: -

         (ii)     Address for notices or communications to Party B: --
                  Public Credit and Repackaged Securities (SM) (PCARS)SM Trust
                  Series - c/o Wells Fargo Bank Minnesota, National Association,
                  as trustee

                  -

                  Attention: -

                  Facsimile No.: - Telephone No.: -

(b)      NOTICES. Section 12(a) is amended by adding in the third line thereof
         after the phrase "messaging system" and before the ")" the words, ";
         provided, however, that any such notice or other communication may be
         given by facsimile transmission if telex is unavailable, no telex
         number is supplied to the party providing notice, or if an answer back
         confirmation is not received from the party to whom the telex is sent."

(c)      PROCESS AGENT. For purposes of Section 13(c) of this Agreement, Party B
         irrevocably appoints as its Process Agent the person specified in
         subparagraph (a)(ii) above.

(d)      OFFICES. The provisions of Section 10(a) shall apply to Party A and
         Party B.

(e)      MULTIBRANCH PARTY. For purposes of Section 10(c) of this Agreement,
         neither Party A nor Party B is a Multibranch Party.

(f)      "CALCULATION AGENT" means Party A.

(g)      "CREDIT SUPPORT DOCUMENT" means any credit support annex, any
         Confirmation and any other document, in each case that by its terms
         secures, guarantees or otherwise supports the obligations of Party A
         under this Agreement[, including, but not limited to, the guarantee of
         - set forth in a letter to Party B.]

(h)      CREDIT SUPPORT PROVIDER means, in relation to Party A: -

(i)      GOVERNING LAW; JURISDICTION. This Agreement, any Credit Support
         Document and each Confirmation shall be governed by, and constructed in
         accordance with, the laws of the State of New York. Section 13(b) is
         amended by deleting (A) "non-" from the second line of clause (i) and
         (B) the final paragraph.

(j)      WAIVER OF JURY TRIAL. Each party waives, to the full extent permitted
         by applicable law, any right it may have to a trial by jury in respect
         of any Proceedings relating to this Agreement or any Credit Support
         Document.

(k)      NETTING OF PAYMENTS. Subparagraph (ii) of Section 2(c) shall not apply
         to any amounts payable with respect to any Transactions.

(l)      "AFFILIATE" has the meaning specified in Section 14, but excludes -.

PART 5.          OTHER PROVISIONS.

                                      S-4
<PAGE>   23
(a)      TRUSTEE CAPACITY. With respect to the execution of this Agreement on
         behalf of Party B, it is expressly understood and agreed by the parties
         hereto that, (i) this Agreement is executed and delivered by Wells
         Fargo Bank Minnesota, National Association, not in its individual
         capacity but solely as trustee under the Trust Agreement in the
         exercise of the powers and authority conferred and vested in it, (ii)
         each of the representations, undertakings and agreements herein made on
         the part of Party B is made and intended not as a representation,
         undertaking or agreement, as the case may be, by Wells Fargo Bank
         Minnesota, National Association in its individual capacity but is made
         and intended for purposes of binding only Party B and (iii) under no
         circumstances shall Wells Fargo Bank Minnesota, National Association in
         its individual capacity be liable for the payment of any indebtedness
         or expenses of Party B or be liable for the breach or failure of any
         obligation, representation, warranty or covenant made or undertaken by
         Party B under this Agreement.

(b)      ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding at
         the end thereof the following subparagraphs:

         "(g) ELIGIBLE CONTRACT PARTICIPANT. It is an "eligible contract
         participant" within the meaning of Section 1a(12) of the U.S. Commodity
         Exchange Act.

         (h) NO AGENCY. It is entering into this Agreement and each Transaction
         as principal (and not as agent or in any other capacity, fiduciary or
         otherwise.

         (j) NO RELIANCE. In connection with the negotiation of, the entering
         into, and the confirming of the execution of, this Agreement, any
         Credit Support Document to which it is a party and each Transaction:
         (i) the other party is not acting as a fiduciary or financial or
         investment advisor for it; (ii) it is not relying upon any
         representations (whether written or oral) of the other party other than
         the representations expressly set forth in this Agreement or such
         Credit Support Document; and (iii) it has consulted with its own legal,
         regulatory, tax, business, investment, financial and accounting
         advisors to the extent it has deemed necessary, and it has made its own
         investment, hedging and trading decisions based upon its own judgment
         and upon any advice from such advisors as it has deemed necessary and
         not upon any view expressed by the other party.

(c)      SETOFF AND RELATED MATTERS.

         (i) Upon the occurrence or designation of any Early Termination Date on
         account of an Event of Default, any amount payable by X or any
         Affiliate of X under this Agreement, any Specified Transaction with Y,
         or in respect of any other matured, liquidated or terminated obligation
         to Y shall, at the option of X or any Affiliate of X (and without prior
         notice to Y), be reduced by its setoff and recoupment against any and
         all amounts payable by Y to X or any Affiliate of X under this
         Agreement, any Specified Transaction with Y or in respect of any other
         matured, liquidated or terminated obligation of Y (and any and all such
         amounts payable by Y shall be discharged promptly and in all respects
         to the extent that it is so offset). X or an Affiliate of X, as
         appropriate, shall give notice to Y after any setoff and recoupment is
         effected under this paragraph (i). For purposes of the foregoing, X and
         any Affiliate of X shall be entitled to convert any obligations
         denominated in one currency into another at such rates of exchange as
         it deems appropriate in good faith and in a commercially reasonable
         manner, and amounts may be set off and recouped irrespective of the
         currency, place of payment or booking office of any obligation to or
         from Y. If an obligation is unascertained, X or any Affiliate of X, as
         appropriate, may in good faith estimate that obligation and offset and
         recoup in respect of that estimate, subject to the relevant party's
         accounting to the other when the obligation is ascertained. All
         obligations of X and any Affiliate of X under this Agreement, any
         Specified Transaction with Y or in respect of any other matured,
         liquidated or terminated obligation to Y are subject to the condition
         precedent that Y shall have performed all of its obligations to X and
         any Affiliate of X under this Agreement, any Specified Transaction with
         X and in respect of any other matured, liquidated or terminated
         obligation of Y. Party A and Party B and their Affiliates intend that
         all Transactions and Specified Transactions be treated as mutual and
         part of a single, indivisible contractual and business relationship.

                                      S-5
<PAGE>   24
         (ii) If either party ("C"), its Credit Support Provider or any
         Affiliate of C has reasonable grounds for insecurity regarding a
         potential default under this Agreement or any Specified Transaction by
         the other party ("D"), any Credit Support Provider or any Affiliate of
         D, then C or any Affiliate of C may transfer its rights and obligations
         under this Agreement or any agreement for a Specified Transaction to
         any Affiliate of C or to C, and each of the parties hereto agrees to
         such transfer and to use its best efforts to obtain any required
         consents from its relevant Affiliate to any such transfer.

         (iii) Nothing in this Part 5(c) shall be effective to create a charge
         or other security interest. This Part 5(c) shall be without prejudice
         and in addition to any right of setoff, recoupment, combination of
         accounts, lien or other right to which any party or any of its
         Affiliates is at any time otherwise entitled (whether by operation of
         law, contract or otherwise).

(d)      CONFIRMATIONS. On or promptly following the Trade Date or other
         transaction date of each Transaction, Party A will send to Party B a
         Confirmation. Party B will promptly thereafter confirm the accuracy of
         (in the manner required by Section 9(e)), or request the correct of,
         such Confirmation (in the latter case, indicating how it believes the
         terms of such Confirmation should be correctly stated and such other
         terms which should be added to or deleted from such Confirmation to
         make it correct).

(e)      TELEPHONE CONVERSATIONS. Some or all of the telephone conversations
         between Party A and Party B may, in accordance with market practice, be
         taped without the use of a warning tone and retained by either party.
         Each party consents to such recording.

(f)      SECURITY. As collateral security for the prompt and complete payment
         and performance when due of the obligations of Party B hereunder, Party
         B hereby grants to Party A a continuing security interest in all of
         Party B's right, title and interest in the Trust Property (as defined
         in the Trust Agreement). Such security interest shall remain in full
         force and effect until Party A has received all amounts due to it
         hereunder; provided that such security interest shall be automatically
         discharged without any further action on the part of Party A if this
         Agreement has been terminated in accordance with its terms and Party A
         has received all amounts due to it hereunder.

(g)      FURTHER ACKNOWLEDGMENTS. Each party agrees and acknowledges that:

         (i)      Each transfer of funds, securities or other property under
                  this Agreement or any Transaction hereunder constitutes a
                  transfer that may not be avoided under Sections 544, 545, 547,
                  548(a)(2) or 548(b) of Title 11 of the United States Code (the
                  "Bankruptcy Code").

         (ii)     The rights given to each party hereunder upon an Event of
                  Default by the other to cause the liquidation and termination
                  of this Agreement and each Transaction hereunder, and to
                  offset mutual debts and claims in connection therewith, may
                  not be stayed, limited or avoided under the Bankruptcy Code,
                  including, without limitation, Section 362, 365(c) or 105(a)
                  thereof.

(h)      NON-PETITION. Prior to the date that is one year and one day after all
         distributions in respect of the Certificates issued by Party B have
         been made, Party A shall not take any action, or institute or join in
         any proceeding, against Party B under the Bankruptcy Code or any other
         liquidation, insolvency, bankruptcy, moratorium, reorganization or
         similar law ("Insolvency Law") applicable to Party B, now or hereafter
         in effect, or which would be reasonably likely to cause Party B to be
         subject to, or seek the protection of, any such Insolvency Law.

(i)      RATING AGENCY CONFIRMATION. No amendment to, or assignment or transfer
         of, this Agreement shall take effect unless and until the "Rating
         Agencies Condition" specified in the Trust Agreement has been satisfied
         with respect to such amendment.

                                      S-6
<PAGE>   25
(j)      SEVERABILITY. If any term, provision, covenant or condition of this
         Agreement, or the application thereof to any party or circumstance, is
         held invalid or unenforceable (in whole or in part) for any reason, the
         remaining terms, provisions, covenants and conditions hereof shall
         continue in full force and effect as if this Agreement had been
         executed with the invalid or unenforceable portion eliminated, so long
         as this Agreement as so modified continues to express, without material
         change, the original intentions of the parties as to the subject matter
         of this Agreement and the deletion of such portion of this Agreement
         will not substantially impair the respective benefits or expectations
         of the parties to this Agreement; provided, however, that this
         severability provision shall not be applicable if any provision of
         Section 2, 5, 6 or 13 (or any definition or provision Section 14 to the
         extent that it relates to, or is used in or in connection with any such
         Section) shall be so held to be invalid or unenforceable.

                                      S-7
<PAGE>   26
         IN WITNESS WHEREOF, the parties have caused this Schedule to be
executed by their duly authorized officers as of the date hereof.

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

                                    Public Credit and Repackaged Securities(SM)
                                        (PCARS)SM TRUST SERIES -

                                    By: Wells Fargo Bank Minnesota, National
                                        Association, as Trustee

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

                                      S-8<PAGE>   1

                                                                 EXHIBIT 10.2(d)

                         EMPLOYMENT AGREEMENT EXTENSION

         This Employment Agreement Extension by and between OUTLOOK GROUP CORP.,
a Wisconsin corporation (the "Employer"), and Joseph J. Baksha (the "Employee")
is made as of the 1st day of June, 2001. Reference is made to the Employment
Agreement, made the 18th day of August, 1999, by and between Employer and
Employee (the "Employment Agreement"). A copy of the Employment Agreement is
attached hereto for convenient reference.

         EMPLOYER AND EMPLOYEE AGREE, for the consideration of the mutual
promises and agreements hereinafter set forth, as follows:

         1.       EXTENSION. The Employer and the Employee hereby agree and
                  confirm that the Employment Agreement is hereby extended for a
                  period of two years, until May 31, 2003, and is renewable by
                  mutual consent on or before June 1, 2003.

         2.       COMPENSATION. Employer agrees to pay Employee during the term
                  of this Agreement, a compensation consisting of a salary,
                  along with an incentive earnings opportunity, also to be
                  determined annually, as provided in "Exhibit A," attached,
                  which is a part of this Agreement.

                  All compensation shall be subject to the customary withholding
                  tax and other employment taxes as required with respect to
                  compensation paid by a corporation to an employee. Employee
                  shall not be entitled to any other compensation except as
                  expressly provided for in this Agreement, or as provided for
                  by the Compensation Committee of the Board of Directors.

         3.       EMPLOYER INITIATED TERMINATION. For purposes of determining an
                  "Employer initiated termination" under Section 4 of the
                  Employment Agreement, such term shall include, without
                  limitation, a failure of the Employer to offer a renewal on or
                  before June 1, 2003 on terms at least substantially similar to
                  the terms hereof.

         4.       CHANGE IN CONTROL. "Change in control" as used in the
                  Employment Agreement shall mean a "change in control" as
                  defined in the Outlook Group Corp. 1999 Stock Option Plan.

         5.       OTHER PROVISIONS NOT MODIFIED. Except as modified hereby, the
                  other terms and conditions of the Employment Agreement remain
                  in full force and effect as provided therein.

<PAGE>   2

         IN WITNESS WHEREOF, the parties have executed this Employment Agreement
Extension on the date first above written and by so executing, the parties
acknowledge that they have read and fully understand all the terms and
conditions included in this Extension and acknowledge receipt of an executed
copy of this Extension.

EMPLOYEE:                                      OUTLOOK GROUP CORP.:

                                               By:
-----------------------------                     ------------------------------
Joseph J. Baksha                               Richard C. Fischer, Chairman

Enclosures: Exhibit "A" and the Employment Agreement.

                                       2

<PAGE>   3

                                   EXHIBIT "A"

                 TO EMPLOYMENT AGREEMENT (AS EXTENDED) BETWEEN|
                             OUTLOOK GROUP CORP. AND
                                JOSEPH J. BAKSHA
                             EFFECTIVE JUNE 1, 2001

COMPENSATION

1.       SALARY EFFECTIVE JUNE 1, 2001

         Employer agrees to pay Employee bi-weekly salary shall continue as
         $8,653.85 each two (2 ) weeks ($225,000 per year equivalent) on its
         regular payroll. That salary will be in effect each of fiscal 2002 and
         fiscal 2003, unless modified by mutual agreement of the Employee and
         the Employer.

2.       INCENTIVE EARNINGS OPPORTUNITY

         EBIT Level                         Incentive

         $0 to $2,500,000                   None
         $2,500,001 to above                5% of the amount over $2,500,000

         This is a quarterly program that is annualized. Payments will be made
         quarterly with the fourth quarter distribution subject to the year end
         audit. Annual plan payment is maximized at 75% of participant's salary.
         This incentive payment opportunity shall be in effect in each of fiscal
         2002 and 2003.

3.       CAR ALLOWANCE

         Monthly reimbursement rate is set at $850, which includes all auto
         related expenses including gas.

                                       3

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