Document:

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                                                                   Exhibit 10.26

                     VALEANT PHARMACEUTICALS INTERNATIONAL

           $200,000,000 3.0% CONVERTIBLE SUBORDINATED NOTES DUE 2010
           $200,000,000 4.0% CONVERTIBLE SUBORDINATED NOTES DUE 2013

                         REGISTRATION RIGHTS AGREEMENT

                                                               November 19, 2003

Banc of America Securities LLC,
Goldman, Sachs & Co.
As representatives of the several Purchasers
named in Schedule I to the Purchase Agreement
c/o Banc of America Securities LLC
9 West 57th Street
New York, New York 10019

Ladies and Gentlemen:

      Valeant Pharmaceuticals International, a Delaware corporation (the
"Company"), proposes to issue and sell to the Purchasers (as defined herein)
upon the terms set forth in the Purchase Agreement (as defined herein)
$200,000,000 principal amount of its 3.0% Convertible Subordinated Notes due
2010 (the "3.0% Notes due 2010") and $200,000,000 principal amount of its 4.0%
Convertible Subordinated Notes due 2013 (the "4.0% Notes due 2013" and, together
with the 3.0% Notes due 2010, the "Firm Securities"). In addition, the Company
has granted to the Purchasers an option, exercisable from time to time by the
Purchasers, to purchase an aggregate of up to an additional $40,000,000
principal amount of its 3.0% Notes due 2010 and an aggregate of up to an
additional $40,000,000 principal amount of its 4.0% Notes due 2013 (the
"Optional Securities" and, together with the Firm Securities, the "Securities").
The Securities are convertible into Common Stock, par value $.01 per share, of
the Company. The Securities will be issued under an Indenture (as defined
herein).

      Ribapharm Inc. ("Ribapharm"), a wholly owned subsidiary of the Company, is
an obligor with respect to the Securities and shall be subject to the provisions
of this Agreement, jointly and severally with the Company, but only for so long
as Ribapharm shall have outstanding obligations under the 6-1/2% Convertible
Subordinated Notes due 2008, originally issued under an Indenture, dated as of
July 18, 2001, among Valeant Pharmaceuticals International, Ribapharm and The
Bank of New York, as Trustee.

      As an inducement to the Purchasers to enter into the Purchase Agreement
and in satisfaction of a condition to the obligations of the Purchasers
thereunder, the Company and Ribapharm, jointly and severally, agree with the
Purchasers for the benefit of Holders (as defined herein) from time to time of
the Registrable Securities (as defined herein) as follows:
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      1.    Definitions.

      (a)   Capitalized terms used herein without definition shall have the
meanings ascribed to them in the Purchase Agreement. As used in this Agreement,
the following defined terms shall have the following meanings:

      "Affiliate" of any specified person means any other person which, directly
or indirectly, is in control of, is controlled by, or is under common control
with such specified person. For purposes of this definition, control of a person
means the power, direct or indirect, to direct or cause the direction of the
management and policies of such person whether by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

      "Closing Date" means the First Time of Delivery as defined in the Purchase
Agreement.

      "Commission" means the United States Securities and Exchange Commission,
or any other federal agency at the time administering the Exchange Act or the
Securities Act, whichever is the relevant statute for the particular purpose.

      "Common Stock" means the Company's common stock, par value $.01 per share,
including associated preferred stock purchase rights.

      "DTC" means The Depository Trust Company.

      "Effective Date" has the meaning assigned thereto in Section 2(b)(i)
hereof.

      "Effective Failure" has the meaning assigned thereto in Section 7(b)
hereof.

      "Effectiveness Period" has the meaning assigned thereto in Section 2(b)(i)
hereof.

      "Effective Time" means the time at which the Commission declares the Shelf
Registration Statement effective or at which the Shelf Registration Statement
otherwise becomes effective.

      "Electing Holder" has the meaning assigned thereto in Section 3(a)(iii)
hereof.

      "Exchange Act" means the United States Securities Exchange Act of 1934, as
amended.

      "Holder" means any person that is the record owner of Registrable
Securities (and includes any person that has a beneficial interest in any
Registrable Security in book-entry form).

      "Indenture" means the Indenture, dated as of November 19, 2003, among the
Company, Ribapharm and The Bank of New York, as amended and supplemented from
time to time in accordance with its terms.

      "Liquidated Damages" has the meaning assigned thereto in Section 7(a)
hereof.

      "Managing Underwriters" means the investment banker or investment bankers
and manager or managers that shall administer an underwritten offering, if any,
conducted pursuant to Section 6 hereof.

      "NASD Rules" means the Rules of the National Association of Securities
Dealers, Inc., as amended from time to time.

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      "Notice and Questionnaire" means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of Appendix A
hereto.

      The term "person" means an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

      "Prospectus" means the prospectus (including, without limitation, any
preliminary prospectus, any final prospectus and any prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Securities Act)
included in the Shelf Registration Statement, as amended or supplemented by any
prospectus supplement with respect to the terms of the offering of any portion
of the Registrable Securities covered by the Shelf Registration Statement and by
all other amendments and supplements to such prospectus, including all material
incorporated by reference in such prospectus and all documents filed after the
date of such prospectus by the Company and Ribapharm under the Exchange Act and
incorporated by reference therein.

      "Purchase Agreement" means the purchase agreement, dated as of November
13, 2003, among the Purchasers, the Company and Ribapharm relating to the
Securities.

      "Purchasers" means the Purchasers named in Schedule I to the Purchase
Agreement.

      "Registrable Securities" means all or any portion of the Securities issued
from time to time under the Indenture in registered form and the shares of
Common Stock issuable upon conversion, repurchase or redemption of such
Securities; provided, however, that a security ceases to be a Registrable
Security when it is no longer a Restricted Security.

      "Registration Default" has the meaning assigned thereto in Section 7(a)
hereof.

      "Restricted Security" means any Security or share of Common Stock issuable
upon conversion thereof except any such Security or share of Common Stock that
(i) has been effectively registered under the Securities Act and sold in a
manner contemplated by the Shelf Registration Statement, (ii) has been
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or is transferable pursuant to paragraph (k) of
such Rule 144 (or any successor provision thereto) or (iii) has otherwise been
transferred and a new Security or share of Common Stock not subject to transfer
restrictions under the Securities Act has been delivered by or on behalf of the
Company in accordance with Section 2.6 of the Indenture.

      "Rules and Regulations" means the published rules and regulations of the
Commission promulgated under the Securities Act or the Exchange Act, as in
effect at any relevant time.

      "Securities Act" means the United States Securities Act of 1933, as
amended.

      "Shelf Registration" means a registration effected pursuant to Section 2
hereof.

      "Shelf Registration Statement" means a "shelf" registration statement
filed under the Securities Act providing for the registration of, and the sale
on a continuous or delayed basis by the Holders of, all of the Registrable
Securities pursuant to Rule 415 under the Securities Act and/or any similar rule
that may be adopted by the Commission, filed by the Company and Ribapharm
pursuant to the provisions of Section 2 of this Agreement, including the
Prospectus contained therein, any amendments and supplements to such
registration statement, including

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post-effective amendments, and all exhibits and all material incorporated by
reference in such registration statement.

      "Trust Indenture Act" means the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder,
as the same shall be amended from time to time.

      The term "underwriter" means any underwriter of Registrable Securities in
connection with an offering thereof under a Shelf Registration Statement.

      (b)   Wherever there is a reference in this Agreement to a percentage of
the "principal amount" of Registrable Securities or to a percentage of
Registrable Securities, Common Stock shall be treated as representing the
principal amount of Securities that was surrendered for conversion or exchange
in order to receive such number of shares of Common Stock.

      2.    Shelf Registration.

      (a)   The Company and Ribapharm shall, no later than 90 calendar days
following the Closing Date, file with the Commission a Shelf Registration
Statement relating to the offer and sale of the Registrable Securities by the
Holders from time to time in accordance with the methods of distribution elected
by such Holders and set forth in such Shelf Registration Statement and,
thereafter, shall use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective under the Securities Act no
later than 270 calendar days following the Closing Date; provided, however, that
the Company and Ribapharm may, upon written notice to all Holders, postpone
having the Shelf Registration Statement declared effective for a reasonable
period not to exceed 30 days if the Company possesses material non-public
information, the disclosure of which would have a material adverse effect on the
Company, Ribapharm and its subsidiaries taken as a whole; provided, further,
however, that no Holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement or to use the Prospectus
forming a part thereof for resales of Registrable Securities unless such Holder
is an Electing Holder.

      (b)   The Company and Ribapharm, jointly and severally, shall use their
reasonable best efforts:

            (i)   to keep the Shelf Registration Statement continuously
      effective under the Securities Act in order to permit the Prospectus
      forming a part thereof to be usable by Holders until the earliest of (1)
      the sale of all Registrable Securities registered under the Shelf
      Registration Statement; (2) the expiration of the period referred to in
      Rule 144(k) of the Securities with respect to all Registrable Securities
      held by Persons that are not Affiliates of the Company; and (3) two years
      from the date (the "Effective Date") such Shelf Registration Statement is
      declared effective (such period being referred to herein as the
      "Effectiveness Period");

            (ii)  after the Effective Time of the Shelf Registration Statement,
      promptly upon the request of any Holder of Registrable Securities that is
      not then an Electing Holder, to take any action reasonably necessary to
      enable such Holder to use the Prospectus forming a part thereof for
      resales of Registrable Securities, including, without limitation, any
      action necessary to identify such Holder as a selling securityholder in
      the Shelf Registration Statement; provided, however, that nothing in this
      subparagraph shall

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      relieve such Holder of the obligation to return a completed and signed
      Notice and Questionnaire to the Company in accordance with Section
      3(a)(ii) hereof; and

            (iii) if at any time the Securities, pursuant to Article IV of the
      Indenture, are convertible into securities other than Common Stock, to
      cause, or to cause any successor under the Indenture to cause, such
      securities to be included in the Shelf Registration Statement no later
      than the date on which the Securities may then be convertible into such
      securities.

The Company and Ribapharm shall be deemed not to have used their reasonable best
efforts to keep the Shelf Registration Statement effective during the requisite
period if the Company and Ribapharm voluntarily take any action that would
result in Holders of Registrable Securities covered thereby not being able to
offer and sell any of such Registrable Securities during that period, unless
such action is (A) required by applicable law and the Company and Ribapharm
thereafter promptly comply with the requirements of paragraph 3(j) below or (B)
permitted pursuant to Section 2(c) below.

      (c)   The Company and Ribapharm may suspend the use of the Prospectus for
a period not to exceed 30 days in any 90-day period or an aggregate of 90 days
in any 12-month period without being required to pay Liquidated Damages if the
Board of Directors of the Company shall have determined in good faith that
because of valid business reasons (not including avoidance of the Company's and
Ribapharm's obligations hereunder), including the acquisition or divestiture of
assets, pending corporate developments and similar events, it is in the best
interests of the Company and Ribapharm to suspend such use, and prior to
suspending such use the Company and Ribapharm provide the Holders with written
notice of such suspension, which notice need not specify the nature of the event
giving rise to such suspension.

      3.    Registration Procedures. In connection with the Shelf Registration
Statement, the following provisions shall apply:

      (a)   (i)   Not less than 30 calendar days prior to the Effective Time of
the Shelf Registration Statement, the Company and Ribapharm shall mail the
Notice and Questionnaire to the Holders of Registrable Securities. No Holder
shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement as of the Effective Time, and no Holder shall be entitled
to use the Prospectus forming a part thereof for resales of Registrable
Securities at any time, unless such Holder has returned a completed and signed
Notice and Questionnaire to the Company and Ribapharm by the deadline for
response set forth therein; provided, however, Holders of Registrable Securities
shall have at least 28 calendar days from the date on which the Notice and
Questionnaire is first mailed to such Holders to return a completed and signed
Notice and Questionnaire to the Company and Ribapharm.

            (ii)  After the Effective Time of the Shelf Registration Statement,
      the Company and Ribapharm shall, upon the request of any Holder of
      Registrable Securities that is not then an Electing Holder, promptly send
      a Notice and Questionnaire to such Holder. The Company and Ribapharm shall
      not be required to take any action to name such Holder as a selling
      securityholder in the Shelf Registration Statement or to enable such
      Holder to use the Prospectus forming a part thereof for resales of
      Registrable Securities until such Holder has returned a completed and
      signed Notice and Questionnaire to the Company and Ribapharm.

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            (iii) The term "Electing Holder" shall mean any Holder of
      Registrable Securities that has returned a completed and signed Notice and
      Questionnaire to the Company in accordance with Section 3(a)(i) or
      3(a)(ii) hereof.

      (b)   The Company and Ribapharm shall furnish to each Electing Holder,
prior to the Effective Time, upon their request, a copy of the Shelf
Registration Statement initially filed with the Commission, and shall furnish to
such Holders, prior to the filing thereof with the Commission, upon their
request, copies of each amendment thereto and each amendment or supplement, if
any, to the Prospectus included therein, and shall use their reasonable best
efforts to reflect in each such document, at the Effective Time or when so filed
with the Commission, as the case may be, such comments as such Holders and their
respective counsel reasonably may propose not later than 9:00 a.m., New York
City time, on the second business day prior to the Effective Time or the date of
filing, as applicable.

      (c)   The Company and Ribapharm shall promptly use their reasonable best
efforts to take such action as may be necessary so that (i) each of the Shelf
Registration Statement and any amendment thereto and the Prospectus forming a
part thereof and any amendment or supplement thereto (and each report or other
document incorporated therein by reference in each case) complies in all
material respects with the Securities Act and the Exchange Act and the
respective rules and regulations thereunder, (ii) each of the Shelf Registration
Statement and any amendment thereto does not, when it becomes effective, contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
and, (iii) subject to Section 2(c), each of the Prospectus forming a part of the
Shelf Registration Statement, and any amendment or supplement to such
Prospectus, does not at any time during the Effectiveness Period include an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

      (d)   The Company and Ribapharm, jointly and severally, shall promptly
advise each Electing Holder, and shall confirm such advice in writing if so
requested by any such Electing Holder:

            (i)   when a Shelf Registration Statement and any amendment thereto
      has been filed with the Commission and when a Shelf Registration Statement
      or any post-effective amendment thereto has become effective, in each case
      making a public announcement thereof by release made to Reuters Economic
      Services and Bloomberg Business News;

            (ii)  of any request by the Commission for amendments or supplements
      to the Shelf Registration Statement or the Prospectus included therein or
      for additional information;

            (iii) of the issuance by the Commission of any stop order suspending
      the effectiveness of the Shelf Registration Statement or the initiation of
      any proceedings for such purpose;

            (iv)  of the receipt by the Company or Ribapharm of any notification
      with respect to the suspension of the qualification of the securities
      included in the Shelf Registration Statement for sale in any jurisdiction
      or the initiation of any proceeding for such purpose; and

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            (v)   of the occurrence of any event or the existence of any state
      of facts (but not as to the substance of any such event or facts) that
      requires the making of any changes in the Shelf Registration Statement or
      the Prospectus included therein so that, as of such date, such Shelf
      Registration Statement and Prospectus do not contain an untrue statement
      of a material fact and do not omit to state a material fact required to be
      stated therein or necessary to make the statements therein (in the case of
      the Prospectus, in light of the circumstances under which they were made)
      not misleading (which advice shall be accompanied by an instruction to
      such Holders to suspend the use of the Prospectus until the requisite
      changes have been made).

      (e)   The Company and Ribapharm shall use their reasonable best efforts to
prevent the issuance, and if issued to obtain the withdrawal at the earliest
possible time, of any order suspending the effectiveness of the Shelf
Registration Statement.

      (f)   The Company and Ribapharm shall furnish to each Electing Holder,
without charge, at least one copy of the Shelf Registration Statement and all
post-effective amendments thereto, including financial statements and schedules,
and, if such Electing Holder so requests in writing, all reports, other
documents and exhibits that are filed with or incorporated by reference in the
Shelf Registration Statement.

      (g)   The Company and Ribapharm shall, during the Effectiveness Period,
deliver to each Electing Holder, without charge, as many copies of the
Prospectus (including each preliminary Prospectus) included in the Shelf
Registration Statement and any amendment or supplement thereto as such Electing
Holder may reasonably request; and the Company consents (except during the
periods specified in Section 2(c) above or during the continuance of any event
or the existence of any state of facts described in Section 3(d)(v) above) to
the use of the Prospectus and any amendment or supplement thereto by each of the
Electing Holders in connection with the offering and sale of the Registrable
Securities covered by the Prospectus and any amendment or supplement thereto
during the Effectiveness Period.

      (h)   Prior to any offering of Registrable Securities pursuant to the
Shelf Registration Statement, the Company and Ribapharm shall use their
reasonable best efforts to (i) register or qualify, to the extent required by
law, or cooperate with the Electing Holders and their respective counsel in
connection with the registration or qualification of such Registrable Securities
for offer and sale under the securities or "blue sky" laws of such jurisdictions
within the United States as any Electing Holder may reasonably request, (ii)
keep such registrations or qualifications in effect and comply with such laws so
as to permit the continuance of offers and sales in such jurisdictions for so
long as may be necessary to enable any Electing Holder or underwriter, if any,
to complete its distribution of Registrable Securities pursuant to the Shelf
Registration Statement, and (iii) take any and all other actions necessary or
advisable to enable the disposition in such jurisdictions of such Registrable
Securities; provided, however, that in no event shall the Company or Ribapharm
be obligated to (A) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to so
qualify but for this Section 3(h) or (B) file any general consent to service of
process in any jurisdiction where it is not as of the date hereof so subject.

      (i)   Unless any Registrable Securities shall be in book-entry only form,
the Company and Ribapharm shall cooperate with the Electing Holders to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold pursuant to the Shelf Registration Statement,
which certificates, if so required by any securities exchange upon which any
Registrable Securities are listed, shall be penned, lithographed or engraved, or
produced by

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any combination of such methods, on steel engraved borders, and which
certificates shall be free of any restrictive legends and in such permitted
denominations and registered in such names as Electing Holders may request in
connection with the sale of Registrable Securities pursuant to the Shelf
Registration Statement.

      (j)   Upon the occurrence of any event or the existence of any state of
facts contemplated by paragraph 3(d)(v) above, the Company shall promptly
prepare a post-effective amendment to any Shelf Registration Statement or an
amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to purchasers of the Registrable
Securities included therein, the Prospectus will not include an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. If the Company and Ribapharm notify the Electing Holders
of the occurrence of any event or the existence of any state of facts
contemplated by paragraph 3(d)(v) above, the Electing Holder shall suspend the
use of the Prospectus until the requisite changes to the Prospectus have been
made.

      (k)   Not later than the Effective Time of the Shelf Registration
Statement, the Company and Ribapharm shall provide a CUSIP number for the
Registrable Securities that are debt securities.

      (l)   The Company and Ribapharm shall use their reasonable best efforts to
comply with all applicable Rules and Regulations, and to make generally
available (unless otherwise publicly available through the Commission's Edgar
system) to its securityholders as soon as practicable, but in any event not
later than eighteen months after (i) the effective date (as defined in Rule
158(c) under the Securities Act) of the Shelf Registration Statement, (ii) the
effective date of each post-effective amendment to the Shelf Registration
Statement, and (iii) the date of each filing by the Company and Ribapharm with
the Commission of an Annual Report on Form 10-K that is incorporated by
reference in the Shelf Registration Statement, an earnings statement of the
Company, Ribapharm and their respective subsidiaries complying with Section
11(a) of the Securities Act and the rules and regulations of the Commission
thereunder (including, at the option of the Company and Ribapharm, Rule 158).

      (m)   Not later than the Effective Time of the Shelf Registration
Statement, the Company and Ribapharm shall cause the Indenture to be qualified
under the Trust Indenture Act; in connection with such qualification, the
Company and Ribapharm shall cooperate with the Trustee under the Indenture and
the Holders (as defined in the Indenture) to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance
with the terms of the Trust Indenture Act; and the Company and Ribapharm shall
execute, and shall use their reasonable best efforts to cause the Trustee to
execute, all documents that may be required to effect such changes and all other
forms and documents required to be filed with the Commission to enable such
Indenture to be so qualified in a timely manner. In the event that any such
amendment or modification referred to in this Section 3(m) involves the
appointment of a new trustee under the Indenture, the Company and Ribapharm
shall appoint a new trustee thereunder pursuant to the applicable provisions of
the Indenture.

      (n)   In the event of an underwritten offering conducted pursuant to
Section 6 hereof, the Company and Ribapharm shall, if requested, promptly
include or incorporate in a Prospectus supplement or post-effective amendment to
the Shelf Registration Statement such information as the Managing Underwriters
reasonably agree should be included therein and to which the Company and
Ribapharm do not reasonably object and shall make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable after
it is notified of

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the matters to be included or incorporated in such Prospectus supplement or
post-effective amendment.

      (o)   The Company and Ribapharm shall enter into such customary agreements
(including an underwriting agreement in customary form in the event of an
underwritten offering conducted pursuant to Section 6 hereof) and take all other
appropriate action in order to expedite and facilitate the registration and
disposition of the Registrable Securities, and in connection therewith, if an
underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures substantially identical to those set
forth in Section 5 hereof with respect to all parties to be indemnified pursuant
to Section 5 hereof.

      (p)   The Company and Ribapharm, jointly and severally, shall:

            (i)   (A) make reasonably available for inspection by the Electing
      Holders, any underwriter participating in any disposition pursuant to the
      Shelf Registration Statement, and any attorney, accountant or other agent
      retained by such Electing Holders or any such underwriter all relevant
      financial and other records, pertinent corporate documents and properties
      of the Company, Ribapharm and their respective subsidiaries, and (B) cause
      the Company's and Ribapharm's officers, directors and employees to supply
      all information reasonably requested by such Electing Holders or any such
      underwriter, attorney, accountant or agent in connection with the Shelf
      Registration Statement, in each case, as is customary for similar due
      diligence examinations; provided, however, that all records, information
      and documents that are designated in writing by the Company and Ribapharm,
      in good faith, as confidential shall be kept confidential by such Electing
      Holders and any such underwriter, attorney, accountant or agent, unless
      such disclosure is made in connection with a court proceeding or required
      by law, or such records, information or documents become available to the
      public generally or through a third party without an accompanying
      obligation of confidentiality; and provided further that, if the foregoing
      inspection and information gathering would otherwise disrupt the Company's
      and Ribapharm's conduct of their business, such inspection and information
      gathering shall, to the greatest extent possible, be coordinated on behalf
      of the Electing Holders and the other parties entitled thereto by one
      counsel designated by and on behalf of the Electing Holders and other
      parties;

            (ii)  in connection with any underwritten offering conducted
      pursuant to Section 6 hereof, make such representations and warranties to
      the Electing Holders participating in such underwritten offering and to
      the Managing Underwriters, in form, substance and scope as are customarily
      made by the Company and Ribapharm to underwriters in primary underwritten
      offerings of equity and convertible debt securities and covering matters
      including, but not limited to, those set forth in the Purchase Agreement;

            (iii) in connection with any underwritten offering conducted
      pursuant to Section 6 hereof, obtain opinions of counsel to the Company
      and Ribapharm (which counsel and opinions (in form, scope and substance)
      shall be reasonably satisfactory to the Managing Underwriters) addressed
      to each Electing Holder participating in such underwritten offering and
      the underwriters, covering such matters as are customarily covered in
      opinions requested in primary underwritten offerings of equity and
      convertible debt securities and such other matters as may be reasonably
      requested by such Electing Holders and underwriters (it being agreed that
      the matters to be covered by such opinions shall include, without
      limitation, as of the date of the opinion and as of the Effective

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      Time of the Shelf Registration Statement or most recent post-effective
      amendment thereto, as the case may be, the absence from the Shelf
      Registration Statement and the Prospectus, including the documents
      incorporated by reference therein, of an untrue statement of a material
      fact or the omission of a material fact required to be stated therein or
      necessary to make the statements therein not misleading);

            (iv)  in connection with any underwritten offering conducted
      pursuant to Section 6 hereof, obtain "cold comfort" letters and updates
      thereof from the independent public accountants of the Company and
      Ribapharm (and, if necessary, from the independent public accountants of
      any subsidiary of the Company or Ribapharm or of any business acquired by
      the Company or Ribapharm for which financial statements and financial data
      are, or are required to be, included in the Shelf Registration Statement),
      addressed to each Electing Holder participating in such underwritten
      offering (if such Electing Holder has provided such letter,
      representations or documentation, if any, required for such cold comfort
      letter to be so addressed) and the underwriters, in customary form and
      covering matters of the type customarily covered in "cold comfort" letters
      in connection with primary underwritten offerings;

            (v)   in connection with any underwritten offering conducted
      pursuant to Section 6 hereof, deliver such documents and certificates as
      may be reasonably requested by any Electing Holders participating in such
      underwritten offering and the Managing Underwriters, if any, including,
      without limitation, certificates to evidence compliance with Section 3(j)
      hereof and with any conditions contained in the underwriting agreement or
      other agreements entered into by the Company and Ribapharm.

      (q)   The Company and Ribapharm will use their best efforts to cause the
Common Stock issuable upon conversion of the Securities to be listed on the New
York Stock Exchange or other stock exchange or trading system on which the
Common Stock primarily trades on or prior to the Effective Time of the Shelf
Registration Statement hereunder.

      (r)   In the event that any broker dealer registered under the Exchange
Act shall be an "affiliate" (as defined in Rule 2720(b)(1) of the NASD Rules (or
any successor provision thereto)) of the Company or Ribapharm or has a "conflict
of interest" (as defined in Rule 2720(b)(7) of the NASD Rules (or any successor
provision thereto)) and such broker dealer shall underwrite, participate as a
member of an underwriting syndicate or selling group or assist in the
distribution of any Registrable Securities covered by the Shelf Registration
Statement, whether as a Holder of such Registrable Securities or as an
underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company and Ribapharm shall assist such broker dealer
in complying with the requirements of the NASD Rules, including, without
limitation, by (A) engaging a "qualified independent underwriter" (as defined in
Rule 2720(b)(15) of the NASD Rules (or any successor provision thereto)) to
participate in the preparation of the registration statement relating to such
Registrable Securities, to exercise usual standards of due diligence in respect
thereto and to recommend the public offering price of such Registrable
Securities, (B) indemnifying such qualified independent underwriter to the
extent of the indemnification of underwriters provided in Section 5 hereof, and
(C) providing such information to such broker dealer as may be required in order
for such broker-dealer to comply with the requirements of the NASD Rules.

      (s)   The Company and Ribapharm shall use their reasonable best efforts to
take all other steps necessary to effect the registration, offering and sale of
the Registrable Securities covered by the Shelf Registration Statement
contemplated hereby.

                                       10
<PAGE>
      4.    Registration Expenses. Except as otherwise provided in Section 3,
the Company and Ribapharm shall bear all fees and expenses incurred in
connection with the performance of its obligations under Sections 2, 3 and 6
hereof. Each Electing Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
such Electing Holder's Registrable Securities pursuant to the Shelf Registration
Statement and the fees and disbursements of counsel and other advisors or
experts retained by such Electing Holder.

      5.    Indemnification and Contribution.

      (a)   Indemnification by the Company and Ribapharm. Upon the registration
of the Registrable Securities pursuant to Section 2 hereof, the Company and
Ribapharm shall indemnify and hold harmless each Electing Holder and each
underwriter, selling agent or other securities professional, if any, which
facilitates the disposition of Registrable Securities, and each of their
respective officers and directors and each person who controls such Electing
Holder, underwriter, selling agent or other securities professional within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(each such person being sometimes referred to as an "Indemnified Person")
against any losses, claims, damages or liabilities, joint or several, to which
such Indemnified Person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in any Shelf Registration
Statement under which such Registrable Securities are to be registered under the
Securities Act, or any Prospectus contained therein or furnished by the Company
and Ribapharm to any Indemnified Person, or any amendment or supplement thereto,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and the Company and Ribapharm hereby agree to
reimburse such Indemnified Person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such action
or claim as such expenses are incurred; provided, however, that the Company and
Ribapharm shall not be liable to any such Indemnified Person in any such case to
the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such Shelf Registration Statement or Prospectus, or
amendment or supplement, in reliance upon and in conformity with written
information furnished to the Company and Ribapharm by such Indemnified Person
expressly for use therein; and provided, further, that the Company and Ribapharm
will not be liable to any Indemnified Person with respect to any preliminary
Prospectus to the extent that the Company and Ribapharm shall sustain the burden
of proving that any such loss, liability, claim, damage or expense resulted from
the fact that such Indemnified Person, in contravention of applicable law, sold
Securities to a person to whom such Indemnified Person failed to send or give,
at or prior to the written confirmation of such sale, a copy of the final
Prospectus (excluding documents incorporated by reference) as then amended or
supplemented if (I) the Company and Ribapharm have previously furnished copies
thereof (sufficiently in advance of the written confirmation of such sale to
allow for distribution by the written confirmation of such sale) to the
Indemnified Person and the loss, liability, claim, damage or expense of such
Indemnified Person resulted from an untrue statement or omission or alleged
untrue statement or omission of a material fact contained in or omitted from the
preliminary Prospectus which was corrected in the final Prospectus (excluding
documents incorporated by reference) or the final Prospectus as then amended or
supplemented (excluding documents incorporated by reference) prior to written
confirmation of such sale and such Prospectus (excluding documents incorporated
by reference) was required by law to be delivered at or prior to the written
confirmation of sale of Securities to such person and (ii) such failure to give
or send such final Prospectus (excluding documents incorporated by reference) by
the

                                       11
<PAGE>
written confirmation of the sale to the party or parties asserting such loss,
liability, claim, damage or expense would have constituted the sole defense to
the claim asserted by such person.

      (b)   Indemnification by the Electing Holders and any Agents and
Underwriters. Each Electing Holder agrees, as a consequence of the inclusion of
any of such Electing Holder's Registrable Securities in such Shelf Registration
Statement, and each underwriter, selling agent or other securities professional,
if any, which facilitates the disposition of Registrable Securities shall agree,
as a consequence of facilitating such disposition of Registrable Securities,
severally and not jointly, to (i) indemnify and hold harmless the Company,
Ribapharm and their respective directors, officers who sign any Shelf
Registration Statement and each person, if any, who controls the Company and
Ribapharm within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any losses, claims, damages or
liabilities to which the Company, Ribapharm or such other persons may become
subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon an untrue statement or alleged untrue statement of a material fact
contained in such Shelf Registration Statement or Prospectus, or any amendment
or supplement, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company and Ribapharm by
such Electing Holder, underwriter, selling agent or other securities
professional expressly for use therein, and (ii) reimburse the Company and
Ribapharm for any legal or other expenses reasonably incurred by the Company and
Ribapharm in connection with investigating or defending any such action or claim
as such expenses are incurred.

      (c)   Notices of Claims, Etc. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by subsection (a) or (b) above. In case any such
action shall be brought against any indemnified party and it shall notify an
indemnifying party of the commencement thereof, such indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, such indemnifying party shall
not be liable to such indemnified party under this Section 5 for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof other
than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to, or an admission of, fault, culpability or a failure to act, by
or on behalf of any indemnified party.

                                       12
<PAGE>
      (d)   Contribution. If the indemnification provided for in this Section 5
is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation (even if the Electing Holders or any underwriters, selling
agents or other securities professionals or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 5(d).
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be deemed to include any legal or other fees or expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Electing Holders and any underwriters,
selling agents or other securities professionals in this Section 5(d) to
contribute shall be several in proportion to the percentage of principal amount
of Registrable Securities registered or underwritten, as the case may be, by
them and not joint.

      (e)   Notwithstanding any other provision of this Section 5, in no event
will any (i) Electing Holder be required to undertake liability to any person
under this Section 5 for any amounts in excess of the dollar amount of the
proceeds to be received by such Holder from the sale of such Holder's
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) pursuant to any Shelf Registration Statement under which
such Registrable Securities are to be registered under the Securities Act and
(ii) underwriter, selling agent or other securities professional be required to
undertake liability to any person hereunder for any amounts in excess of the
discount, commission or other compensation payable to such underwriter, selling
agent or other securities professional with respect to the Registrable
Securities underwritten by it and distributed to the public.

      (f)   The obligations of the Company and Ribapharm under this Section 5
shall be in addition to any liability which the Company and Ribapharm may
otherwise have to any Indemnified Person and the obligations of any Indemnified
Person under this Section 5 shall be in addition to any liability which such
Indemnified Person may otherwise have to the Company and Ribapharm or any other
Person entitled to the benefits of Section 5(b) above. The remedies provided in
this Section 5 are not exclusive and shall not limit any rights or remedies
which may otherwise be available to an indemnified party at law or in equity.

      6.    Underwritten Offering. Any Holder of Registrable Securities who
desires to do so may sell Registrable Securities (in whole or in part) in an
underwritten offering; provided that (i) the Electing Holders of at least 50% in
aggregate principal amount of the Registrable Securities then covered by the
Shelf Registration Statement shall request such an offering and (ii) at least

                                       13
<PAGE>
such aggregate principal amount of such Registrable Securities shall be included
in such offering; and provided further that the Company and Ribapharm shall not
be obligated to cooperate with more than one underwritten offering during the
Effectiveness Period. Upon receipt of such a request, the Company and Ribapharm
shall provide all Holders of Registrable Securities written notice of the
request, which notice shall inform such Holders that they have the opportunity
to participate in the offering. In any such underwritten offering, the
investment banker or bankers and manager or managers that will administer the
offering will be selected by, and the underwriting arrangements with respect
thereto (including the size of the offering) will be approved by, the holders of
a majority of the Registrable Securities to be included in such offering;
provided, however, that such investment bankers and managers and underwriting
arrangements must be reasonably satisfactory to the Company and Ribapharm. No
Holder may participate in any underwritten offering contemplated hereby unless
(a) such Holder agrees to sell such Holder's Registrable Securities to be
included in the underwritten offering in accordance with any approved
underwriting arrangements, (b) such Holder completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements,
lock-up letters and other documents required under the terms of such approved
underwriting arrangements, and (c) if such Holder is not then an Electing
Holder, such Holder returns a completed and signed Notice and Questionnaire to
the Company and Ribapharm in accordance with Section 3(a)(ii) hereof within a
reasonable amount of time before such underwritten offering. The Holders
participating in any underwritten offering shall be responsible for any
underwriting discounts and commissions and fees and expenses of their own
counsel. The Company and Ribapharm shall pay all expenses customarily borne by
issuers in an underwritten offering, including but not limited to filing fees,
the fees and disbursements of its counsel and independent public accountants and
any printing expenses incurred in connection with such underwritten offering.
Notwithstanding the foregoing or the provisions of Section 3(n) hereof, upon
receipt of a request from the Managing Underwriter or a representative of
holders of a majority of the Registrable Securities to be included in an
underwritten offering to prepare and file an amendment or supplement to the
Shelf Registration Statement and Prospectus in connection with an underwritten
offering, the Company and Ribapharm may delay the filing of any such amendment
or supplement for up to 90 days if the Board of Directors of the Company shall
have determined in good faith that the Company has a bona fide business reason
for such delay.

      7.    Liquidated Damages.

      (a)   If, except as permitted by Section 2(a) hereof, (i) on or prior to
the 90th day following the Closing Date, a Shelf Registration Statement has not
been filed with the Commission or (ii) on or prior to the 270th day following
the Closing Date, such Shelf Registration Statement is not declared effective by
the Commission (each, a "Registration Default"), the Company and Ribapharm,
jointly and severally, shall be required to pay liquidated damages ("Liquidated
Damages"), from and including the day following such Registration Default until
such Shelf Registration Statement is either so filed or so filed and
subsequently declared effective, as applicable, at a rate per annum equal to an
additional one-quarter of one percent (0.25%) of the principal amount of
Registrable Securities, to and including the 90th day following such
Registration Default and one-half of one percent (0.50%) thereof from and after
the 91st day following such Registration Default.

      (b)   In the event that, except as permitted by Section 2(c) hereof, (i)
the Shelf Registration Statement ceases to be effective, (ii) the Company or
Ribapharm suspend the use of the Prospectus otherwise than as permitted by
Section 2(c) hereof, (iii) the Holders are not authorized to use the Prospectus
pursuant to Section 3(g) hereto or (iv) the Holders are otherwise prevented or
restricted by the Company or Ribapharm from effecting sales pursuant to the
Shelf

                                       14
<PAGE>
Registration Statement (an "Effective Failure") for more than 30 days, whether
or not consecutive, in any 90-day period, or for more than 90 days, whether or
not consecutive, during any 12-month period, then the Company and Ribapharm,
jointly and severally, shall pay Liquidated Damages at a rate per annum equal to
an additional one-half of one percent (0.50%) of the principal amount of
Registrable Securities from the 31st day of the applicable 90-day period or the
91st day of the applicable 12-month period, as the case may be, that any such
Effective Failure has existed until the earlier of (1) the time the Holders of
Registrable Securities are again able to make sales under the Shelf Registration
Statement or (2) the expiration of the Effectiveness Period.

      (c)   Any amounts to be paid as Liquidated Damages pursuant to paragraphs
(a) or (b) of this Section 7 shall be paid in cash semi-annually in arrears,
with the first semi-annual payment due on the first Interest Payment Date (as
defined in the Indenture), as applicable, following the date of such
Registration Default or Effective Failure, as applicable. Such Liquidated
Damages will accrue in respect of the Securities at the rates set forth in
paragraphs (a) or (b) of this Section 7, as applicable, on the principal amount
of the Securities; provided, however, notwithstanding anything in this Agreement
to the contrary, no Liquidated Damages shall accrue or be payable with respect
to the Securities solely as a result of a Registration Default or Effective
Failure with respect to the Common Stock.

      (d)   In respect of Securities submitted for conversion into Common Stock
during a Registration Default, the Company and Ribapharm, jointly and severally,
agree to pay accrued and unpaid Liquidated Damages calculated in accordance with
this Section 7 up to and including the date of settlement of the Company's and
Ribapharm's conversion obligation in accordance with the Indenture and to issue
additional shares of Common Stock to each Holder that has submitted for
conversion some or all of its Securities into Common Stock equal to 3% of the
Applicable Conversion Rate (as defined in the Indenture) for each $1,000
principal amount of Securities (except to the extent the Company and Ribapharm
elect to deliver cash upon conversion in accordance with the terms of the
Indenture).

      (e)   Except as provided in Section 8(b) hereof, the Liquidated Damages as
set forth in this Section 7 shall be the exclusive monetary remedy available to
the Holders of Registrable Securities for such Registration Default or Effective
Failure. In no event shall the Company and Ribapharm be required to pay
Liquidated Damages in excess of the applicable maximum amount of one-half of one
percent (0.50%) set forth above, regardless of whether one or multiple
Registration Defaults or Effective Failures exist.

      (f)   Notwithstanding anything in this Agreement to the contrary, no
Holder shall be entitled to Liquidated Damages pursuant to this Section 7 unless
such Holder is an Electing Holder.

      8.    Miscellaneous.

      (a)   Other Registration Rights. The Company and Ribapharm may grant
registration rights that would permit any person that is a third party the right
to piggy back on any Shelf Registration Statement, provided that if the Managing
Underwriter of any underwritten offering conducted pursuant to Section 6 hereof
notifies the Company, Ribapharm and the Electing Holders that the total amount
of securities which the Electing Holders and the holders of such piggy back
rights intend to include in any Shelf Registration Statement is so large as to
materially threaten the success of such offering (including the price at which
such securities can be sold), then the amount, number or kind of securities to
be offered for the account of holders of such piggy back rights will be reduced
to the extent necessary to reduce the total amount of securities

                                       15
<PAGE>
to be included in such offering to the amount, number and kind recommended by
the Managing Underwriter prior to any reduction in the amount of Registrable
Securities to be included in such Shelf Registration Statement.

      (b)   Specific Performance. The parties hereto acknowledge that there
would be no adequate remedy at law if the Company and Ribapharm fail to perform
any of their obligations hereunder and that the Purchasers and the Holders from
time to time may be irreparably harmed by any such failure, and accordingly
agree that the Purchasers and such Holders, in addition to any other remedy to
which they may be entitled at law or in equity and without limiting the remedies
available to the Electing Holders under Section 7 hereof, shall be entitled to
compel specific performance of the obligations of the Company and Ribapharm
under this Registration Rights Agreement in accordance with the terms and
conditions of this Registration Rights Agreement, in any court of the United
States or any State thereof having jurisdiction.

      (c)   Amendments and Waivers. This Agreement, including this Section 8(c),
may be amended, and waivers or consents to departures from the provisions hereof
may be given, only by a written instrument duly executed by the Company,
Ribapharm and the holders of a majority in aggregate principal amount of
Registrable Securities then outstanding. Each Holder of Registrable Securities
outstanding at the time of any such amendment, waiver or consent or thereafter
shall be bound by any amendment, waiver or consent effected pursuant to this
Section 8(c), whether or not any notice, writing or marking indicating such
amendment, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

      (d)   Notices. All notices and other communications provided for or
permitted hereunder shall be given as provided in the Indenture.

      (e)   Parties in Interest. The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration Statement. All
the terms and provisions of this Agreement shall be binding upon, shall inure to
the benefit of and shall be enforceable by the respective successors and assigns
of the parties hereto and any Holder from time to time of the Registrable
Securities to the aforesaid extent. In the event that any transferee of any
Holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be entitled
to receive the benefits of and, if an Electing Holder, be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement to the aforesaid extent.

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

      (g)   Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

      (h)   Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

                                       16
<PAGE>
      (i)   Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

      (j)   Survival. The respective indemnities, agreements, representations,
warranties and other provisions set forth in this Agreement or made pursuant
hereto shall remain in full force and effect, regardless of any investigation
(or any statement as to the results thereof) made by or on behalf of any
Electing Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer
and registration of the Registrable Securities of such Holder.

                                       17
<PAGE>
      Please confirm that the foregoing correctly sets forth the agreement among
the Company, Ribapharm and you.

                                         Very truly yours,

                                         VALEANT PHARMACEUTICALS INTERNATIONAL

                                         By: /s/ Bary G. Bailey
                                             -----------------------------------
                                             Name:  Bary G. Bailey
                                             Title: Executive Vice President and
                                                    Chief Financial Officer

                                         RIBAPHARM INC.

                                         By: /s/ Philip Loberg
                                             -----------------------------------
                                             Name:  Philip Loberg
                                             Title: Treasurer

Accepted as of the date hereof:

BANC OF AMERICA SECURITIES LLC

By: /s/ Derek Dillon
   -----------------------------------
    Name:  Derek Dillon
    Title: Managing Director

GOLDMAN, SACHS & CO.

       /s/ Goldman Sachs & Co.
    ----------------------------------
        (Goldman, Sachs & Co.)

               (Signature Page to Registration Rights Agreement)

                                       18
<PAGE>
                                                                      APPENDIX A

                     VALEANT PHARMACEUTICALS INTERNATIONAL

                        INSTRUCTION TO DTC PARTICIPANTS

                               (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                         DEADLINE FOR RESPONSE: [DATE]

            The Depository Trust Company ("DTC") has identified you as a DTC
Participant through which beneficial interests in the Valeant Pharmaceuticals
International (the "Company") __% Convertible Subordinated Notes due__ (the
"Securities") are held.

            The Company is in the process of registering the Securities under
the Securities Act of 1933 for resale by the beneficial owners thereof. In order
to have their Securities included in the registration statement, beneficial
owners must complete and return the enclosed Notice of Registration Statement
and Selling Securityholder Questionnaire.

            It is important that beneficial owners of the Securities receive a
copy of the enclosed materials as soon as possible as their rights to have the
Securities included in the registration statement depend upon their returning
the Notice and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy
of the enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact [NAME, ADDRESS AND
TELEPHONE NUMBER OF CONTACT AT THE COMPANY].

                                       19
<PAGE>
                     VALEANT PHARMACEUTICALS INTERNATIONAL

                        Notice of Registration Statement
                                      and
                      Selling Securityholder Questionnaire

                                     [DATE]

            Valeant Pharmaceuticals International (the "Company") [HAS FILED](1)
with the United States Securities and Exchange Commission (the "Commission") a
registration statement on Form S-3 (the "Shelf Registration Statement") for the
registration and resale under Rule 415 of the United States Securities Act of
1933, as amended (the "Securities Act"), of the Company's __% Convertible
Subordinated Notes due __ (the "Securities") and the shares of common stock, par
value $.01 per share, including associated preferred stock purchase rights (the
"Common Stock"), issuable upon conversion thereof, in accordance with the
Registration Rights Agreement, dated as of November 19, 2003 (the "Registration
Rights Agreement"), between the Company and the purchasers named therein.

            Ribapharm Inc. ("Ribapharm"), a wholly owned subsidiary of the
Company, is an obligor with respect to the Securities and shall be subject to
the provisions of the Registration Rights Agreement, jointly and severally with
the Company, but only for so long as Ribapharm shall have outstanding
obligations under the 6-1/2% Convertible Subordinated Notes due 2008, originally
issued under an Indenture, dated as of July 18, 2001, among Valeant
Pharmaceuticals International, Ribapharm and The Bank of New York, as Trustee.

            A copy of the Registration Rights Agreement is attached hereto. All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

            In order to have Registrable Securities included in the Shelf
Registration Statement (or a supplement or amendment thereto), this Notice of
Registration Statement and Selling Securityholder Questionnaire ("Notice and
Questionnaire") must be completed, executed and delivered to the Company at the
address set forth herein for receipt ON OR BEFORE [DEADLINE FOR RESPONSE].
Beneficial owners of Registrable Securities who do not complete, execute and
return this Notice and Questionnaire by such date (i) will not be named as
selling securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Registrable Securities.

            Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and related Prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding

--------
(1)   The bracketed language assumes that the Company will file the Shelf
      Registration Statement before mailing the Notice and Questionnaire to
      holders of Registrable Securities, rather than mailing the Notice and
      Questionnaire, waiting 30 days for responses, and then filing the Shelf
      Registration Statement.

                                       20
<PAGE>
the consequences of being named or not being named as a selling securityholder
in the Shelf Registration Statement and related Prospectus.

            The term "Registrable Securities" is defined in the Registration
Rights Agreement to mean all or any portion of the Securities issued from time
to time under the Indenture in registered form and the shares of Common Stock
issuable upon conversion of such Securities; provided, however, that a security
ceases to be a Registrable Security when it is no longer a Restricted Security.

            The term "Restricted Security" is defined in the Registration Rights
Agreement to mean any Security or share of Common Stock issuable upon conversion
thereof except any such Security or share of Common Stock which (i) has been
effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement, (ii) has been transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any
successor provision thereto), or (iii) has otherwise been transferred and a new
Security or share of Common Stock not subject to transfer restrictions under the
Securities Act has been delivered by or on behalf of the Company in accordance
with Section ___ of the Indenture.

                                    ELECTION

            The undersigned holder (the "Selling Securityholder") of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in Item (3).
The undersigned, by signing and returning this Notice and Questionnaire, agrees
to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement, including, without limitation, Section 5 of the Registration Rights
Agreement, as if the undersigned Selling Securityholder were an original party
thereto.(2)

            Upon any sale of Registrable Securities pursuant to the Shelf
Registration Statement, the Selling Securityholder will be required to deliver
to the Company and the Trustee the Notice of Transfer (completed and signed) set
forth in Exhibit 1 to this Notice and Questionnaire.

            The Selling Securityholder hereby provides the following information
to the Company and represents and warrants that such information is accurate and
complete:

----------
(2)   If the Registration Rights Agreement is not included with the mailing of
      the Notice and Questionnaire, the indemnity in Section 5(b) of the
      Registration Rights Agreement, as it relates to Selling Stockholders,
      should be repeated, in its entirety, in the Notice and Questionnaire.

                                       21
<PAGE>
                                 QUESTIONNAIRE

(1)   (a)   Full Legal Name of Selling Securityholder:

            ____________________________________________________________________

      (b)   Full Legal Name of Registered Holder (if not the same as in (a)
            above) of Registrable Securities Listed in Item (3) Below:

            ____________________________________________________________________

      (c)   Full Legal Name of DTC Participant (if applicable and if not the
            same as (b) above) Through Which Registrable Securities Listed in
            Item (3) Below are Held:

            ____________________________________________________________________

(2)         Address for Notices to Selling Securityholder:

                             ______________________

                             ______________________

                             ______________________

            Telephone: ______________________
            Fax:             ______________________
            Contact Person:  ______________________

(3)         Beneficial Ownership of Securities:

            Except as set forth below in this Item (3), the undersigned Selling
            Securityholder does not beneficially own any Securities or shares of
            Common Stock issued upon conversion, repurchase or redemption of any
            Securities.

      (a)   Principal amount of Registrable Securities (as defined in the
            Registration Rights Agreement) beneficially owned:__________________
            CUSIP No(s). of such Registrable Securities:________________________

            Number of shares of Common Stock (if any) issued upon conversion,
            repurchase or redemption of Registrable Securities:_________________

      (b)   Principal amount of Securities other than Registrable Securities
            beneficially owned: CUSIP No(s). of such other Securities:__________

            Number of shares of Common Stock (if any) issued upon conversion of
            such other Securities:______________________________________________

      (c)   Principal amount of Registrable Securities which the undersigned
            wishes to be included in the Shelf Registration Statement:__________
            CUSIP No(s). of such Registrable Securities to be included in the
            Shelf Registration Statement:_______________________________________

            Number of shares of Common Stock (if any) issued upon conversion of
            Registrable Securities which are to be included in the Shelf
            Registration Statement:_______________________________

      (4)   Beneficial Ownership of Other Securities of the Company or
            Ribapharm:

                                       22
<PAGE>
            Except as set forth below in this Item (4), the undersigned Selling
            Securityholder is not the beneficial or registered owner of any
            shares of Common Stock or any other securities of the Company or
            Ribapharm, other than the Securities and shares of Common Stock
            listed above in Item (3).

            State any exceptions here:

      (5)   Relationships with the Company and Ribapharm:

            Except as set forth below, neither the Selling Securityholder nor
            any of its affiliates, officers, directors or principal equity
            holders (5% or more) has held any position or office or has had any
            other material relationship with the Company or Ribapharm (or their
            predecessors or affiliates) during the past three years.

            State any exceptions here:

      (6)   Plan of Distribution:

            Except as set forth below, the undersigned Selling Securityholder
            intends to distribute the Registrable Securities listed above in
            Item (3) only as follows (if at all): Such Registrable Securities
            may be sold from time to time directly by the undersigned Selling
            Securityholder or, alternatively, through underwriters,
            broker-dealers or agents. Such Registrable Securities may be sold in
            one or more transactions at fixed prices, at prevailing market
            prices at the time of sale, at varying prices determined at the time
            of sale, or at negotiated prices. Such sales may be effected in
            transactions (which may involve crosses or block transactions) (i)
            on any national securities exchange or quotation service on which
            the Registrable Securities may be listed or quoted at the time of
            sale, (ii) in the over-the-counter market, (iii) in transactions
            otherwise than on such exchanges or services or in the
            over-the-counter market, or (iv) through the writing of options. In
            connection with sales of the Registrable Securities or otherwise,
            the Selling Securityholder may enter into hedging transactions with
            broker-dealers, which may in turn engage in short sales of the
            Registrable Securities in the course of hedging the positions they
            assume. The Selling Securityholder may also sell Registrable
            Securities short and deliver Registrable Securities to close out
            such short positions, or loan or pledge Registrable Securities to
            broker-dealers that in turn may sell such securities.

            State any exceptions here:

            Note: In no event may such method(s) of distribution take the form
of an underwritten offering of the Registrable Securities without the prior
agreement of the Company.

            By signing below, the Selling Securityholder acknowledges that it
understands its obligation to comply, and agrees that it will comply, with the
prospectus delivery and other provisions of the Securities Act and the Exchange
Act and the rules and regulations thereunder, particularly Regulation M.

            In the event that the Selling Securityholder transfers all or any
portion of the Registrable Securities listed in Item (3) above after the date on
which such information is provided to the Company and Ribapharm, the Selling
Securityholder agrees to notify the

                                       23
<PAGE>
transferee(s) at the time of the transfer of its rights and obligations under
this Notice and Questionnaire and the Registration Rights Agreement.

            By signing below, the Selling Securityholder consents to the
disclosure of the information contained herein in its answers to Items (1)
through (6) above and the inclusion of such information in the Shelf
Registration Statement and related Prospectus. The Selling Securityholder
understands that such information will be relied upon by the Company and
Ribapharm in connection with the preparation of the Shelf Registration Statement
and related Prospectus.

            In accordance with the Selling Securityholder's obligation under
Section 3(a) of the Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company and Ribapharm of
any inaccuracies or changes in the information provided herein which may occur
subsequent to the date hereof at any time while the Shelf Registration Statement
remains in effect. All notices hereunder and pursuant to the Registration Rights
Agreement shall be made in writing, by hand-delivery, first-class mail, or air
courier guaranteeing overnight delivery as follows:

            (i)   To the Company:

                                                     _________________________
                                                     _________________________
                                                     _________________________
                                                     _________________________
                                                     _________________________

            (ii)  With a copy to:

                                                     _________________________
                                                     _________________________
                                                     _________________________
                                                     _________________________
                                                     _________________________

            Once this Notice and Questionnaire is executed by the Selling
Securityholder and received by the Company and Ribapharm, the terms of this
Notice and Questionnaire, and the representations and warranties contained
herein, shall be binding on, shall inure to the benefit of and shall be
enforceable by the respective successors, heirs, personal representatives, and
assigns of the Company, Ribapharm and the Selling Securityholder (with respect
to the Registrable Securities beneficially owned by such Selling Securityholder
and listed in Item (3) above). This Agreement shall be governed in all respects
by the laws of the State of New York.

                                       24
<PAGE>
            IN WITNESS WHEREOF, the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

Dated:_____________________

            ____________________________________________________________________
            Selling Securityholder

            (Print/type full legal name of beneficial owner of Registrable
            Securities)

            By:_________________________________________________________________
            Name:
            Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY AT:

                           _________________________
                           _________________________
                           _________________________
                           _________________________
                           _________________________

                                       25
<PAGE>
                                                                       EXHIBIT 1
                                                                   TO APPENDIX A

             NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

Valeant Pharmaceuticals International
3300 Hyland Avenue
Costa Mesa, CA 92626

Attention:  General Counsel

The Bank of New York
One Wall Street
New York, New York 10286

Attention: Corporate Trust Services

            Re:   Valeant Pharmaceuticals International (the "Company")
                  __% Convertible Subordinated Notes due __ (the "Notes")

Dear Sirs:

            Please be advised that _____________________ has transferred
$___________ aggregate principal amount of the above-referenced Notes or shares
of the Company's common stock, issued upon conversion, repurchase or redemption
of Notes, pursuant to an effective Registration Statement on Form S-3 (File No.
333-____) filed by the Company and Ribapharm Inc.

            We hereby certify that the prospectus delivery requirements, if any,
of the Securities Act of 1933, as amended, have been satisfied with respect to
the transfer described above and that the above-named beneficial owner of the
Notes or common stock is named as a selling securityholder in the Prospectus
dated November [ ], 2003, or in amendments or supplements thereto, and that the
aggregate principal amount of the Notes or number of shares of common stock
transferred are [A PORTION OF] the Notes or shares of common stock listed in
such Prospectus as amended or supplemented opposite such owner's name.

Dated:
                                                     Very truly yours,

                                                     ________________________
                                                     (Name)

                                                By:  ________________________
                                                     (Authorized Signature)

                                       26Exhibit 4.1

                               SERIES SUPPLEMENT

                      CORPORATE BACKED TRUST CERTIFICATES

                     AT&T NOTE-BACKED SERIES 2003-18 TRUST

                                    between

                            LEHMAN ABS CORPORATION,

                                 as Depositor,

                                      and

                     U.S. BANK TRUST NATIONAL ASSOCIATION,

                                  as Trustee,

                      CORPORATE BACKED TRUST CERTIFICATES

                         Dated as of November 19, 2003

<PAGE>

<TABLE>
<CAPTION>

                                                 Table of Contents
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                              <C>
Section 1.  Incorporation of Standard Terms.......................................................................1

Section 2.  Definitions...........................................................................................1

Section 3.  Designation of Trust and Certificates.................................................................8

Section 4.  Trust Certificates...................................................................................11

Section 5.  Distributions........................................................................................11

Section 6.  Trustee's Fees.......................................................................................16

Section 7.  Optional Call; Optional Exchange.....................................................................16

Section 8.  Notices of Events of Default.........................................................................21

Section 9.  Miscellaneous........................................................................................21

Section 10.  Governing Law.......................................................................................25

Section 11.  Counterparts........................................................................................25

Section 12.  Termination of the Trust............................................................................25

Section 13.  Sale of Underlying Securities; Optional Exchange....................................................25

Section 14.  Amendments..........................................................................................25

Section 15.  Voting of Underlying Securities, Modification of Indenture..........................................26

Section 16.  Additional Depositor Representation.................................................................27

SCHEDULE I      SERIES 2003-18 UNDERLYING SECURITIES SCHEDULE
EXHIBIT A-1     FORM OF TRUST CERTIFICATE CLASS A-1
EXHIBIT A-2     FORM OF TRUST CERTIFICATE CLASS A-2
EXHIBIT B       FORM OF WARRANT AGENT AGREEMENT
EXHIBIT C       FORM OF INVESTMENT LETTER

</TABLE>

                                      i
<PAGE>

                               SERIES SUPPLEMENT

                      CORPORATE BACKED TRUST CERTIFICATES

                     AT&T NOTE-BACKED SERIES 2003-18 TRUST

          SERIES SUPPLEMENT, AT&T Note-Backed Series 2003-18, dated as of
November 19, 2003 (the "Series Supplement"), by and between LEHMAN ABS
CORPORATION, as Depositor (the "Depositor"), and U.S. BANK TRUST NATIONAL
ASSOCIATION, as Trustee (the "Trustee").

                             W I T N E S S E T H:

          WHEREAS, the Depositor desires to create the Trust designated herein
(the "Trust") by executing and delivering this Series Supplement, which shall
incorporate the terms of the Standard Terms for Trust Agreements, dated as of
January 16, 2001 (the "Standard Terms" and, together with this Series
Supplement, the "Trust Agreement"), by and between the Depositor and the
Trustee, as modified by this Series Supplement;

          WHEREAS, the Depositor desires to deposit into the Trust the
Underlying Securities described on Schedule I attached hereto, the general
terms of which are described in the Prospectus Supplement under the heading
"Description of the Deposited Assets--Underlying Securities;"

          WHEREAS, in connection with the creation of the Trust and the
deposit therein of the Underlying Securities, it is desired to provide for the
issuance of trust certificates evidencing undivided interests in the Trust and
call warrants related thereto; and

          WHEREAS, the Trustee has joined in the execution of the Standard
Terms and this Series Supplement to evidence the acceptance by the Trustee of
the Trust.

          NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants expressed herein, it is hereby agreed by and between the
Depositor and the Trustee as follows:

     Section 1. Incorporation of Standard Terms. Except as otherwise provided
herein, all of the provisions of the Standard Terms are hereby incorporated
herein by reference in their entirety, and this Series Supplement and the
Standard Terms shall form a single agreement between the parties. In the event
of any inconsistency between the provisions of this Series Supplement and the
provisions of the Standard Terms, the provisions of this Series Supplement
will control with respect to the AT&T Note-Backed Series 2003-18 Certificates
and the transactions described herein.

     Section 2. Definitions.

     (a) Except as otherwise specified herein or as the context may otherwise
require, the following terms shall have the respective meanings set forth
below for all purposes under this Series Supplement. (Section 2(b) below sets
forth terms listed in the Standard Terms which are

                                      1
<PAGE>

not applicable to this Series.) Capitalized terms used but not defined herein
shall have the meanings assigned to them in the Standard Terms.

          "Accredited Investor" shall mean a Person that qualifies as an
"accredited investor" within the meaning of Rule 501(a) under the Securities
Act.

          "Available Funds" shall have the meaning specified in the Standard
Terms.

          "Business Day" shall mean any day other than a Saturday or Sunday,
that is not a legal holiday, or a day on which banks in the City of New York
are not required or authorized by law to be closed.

          "Calculation Agent" shall mean Lehman ABS Corporation or such
affiliate thereof as shall be designated by Lehman ABS Corporation.

          "Call Date" shall mean any Business Day that any holder of Call
Warrants designates as a Call Date occurring (i) on or after November 19,
2008, (ii) after the Underlying Securities Issuer announces that it will
redeem, prepay or otherwise make an unscheduled payment on the Underlying
Securities, (iii) after the Trustee notifies the Certificateholders of any
proposed sale of the Underlying Securities pursuant to the provisions of
Section 5(e) or 5(i) of this Series Supplement or (iv) on any date on which
the Underlying Securities Issuer consummates a tender offer for some or all of
the Underlying Securities.

          "Call Notice" shall have the meaning specified in Section 1.1 of the
Warrant Agent Agreement.

          "Call Price" shall mean, for each related Call Date, (i) in the case
of the Class A-1 Certificates, 100% of the outstanding Certificate Principal
Balance of the Class A-1 Certificates being purchased pursuant to the exercise
of the Call Warrants, plus any accrued and unpaid interest on such amount to
but excluding the Call Date and, (ii) in the case of the Class A-2
Certificates, the present value of all amounts that would otherwise have been
payable on the Class A-2 Certificates being purchased pursuant to the exercise
of the Call Warrants for the period from the related Call Date to the Final
Scheduled Distribution Date using a discount rate of 8.75% per annum, assuming
no delinquencies, deferrals, redemptions or prepayments on the Underlying
Securities shall occur after the related Call Date.

          "Call Warrants" shall have the meaning specified in Section 3
hereof.

          "Called Certificates" shall have the meaning specified in Section
1.1(b) of the Warrant Agent Agreement.

          "Certificate Principal Balance" shall have the meaning specified in
Section 3 hereof.

          "Certificates" shall have the meaning specified in Section 3 hereof.

          "Class A-1 Allocation" shall mean the sum of the present values
(discounted at a per annum rate equal to the then applicable Class A-1 Rate)
of (i) any unpaid interest due or to

                                      2
<PAGE>

become due on the Class A-1 Certificates and (ii) the outstanding Certificate
Principal Balance of the Class A-1 Certificates (in each case assuming that
the Class A-1 Certificates were paid when due and were not redeemed or prepaid
prior to their stated maturity).

          "Class A-1 Certificates" shall mean the Certificates, in the form
attached hereto as Exhibit A-1, to be issued by the Trust representing a
proportionate undivided beneficial ownership interest in certain distributions
to be made by the Trust and having the characteristics described herein and in
the Certificates.

          "Class A-1 Rate" shall initially be 7.125% per annum. The Class A-1
Rate will be increased by 0.25% for each rating notch downgrade of the
Underlying Securities by either S&P or Moody's and such interest rate will be
decreased by 0.25% for each rating notch upgrade of the Underlying Securities
by either S&P or Moody's, but in no event will the Class A-1 Rate be reduced
below 6.375%. Any such increase or decrease of the Class A-1 Rate will take
effect with respect to the interest accrual period beginning on the
Distribution Date immediately after the related rating downgrade or upgrade,
as the case may be. There is no limit to the number of times the Class A-1
Rate can be adjusted.

          "Class A-2 Allocation" shall mean the present value (discounted at a
per annum rate equal to the then applicable Class A-1 Rate) of any unpaid
amounts due or to become due on the outstanding notional amount of the Class
A-2 Certificates (assuming that the Class A-2 Certificates were paid when due
and were not redeemed or prepaid prior to their stated maturity).

          "Class A-2 Certificates" shall mean the Certificates, in the form
attached hereto as Exhibit A-2, to be issued by the Trust representing a
proportionate undivided beneficial ownership interest in certain distributions
to be made by the Trust and having the characteristics described herein and in
the Certificates.

          "Class A-2 Rate" shall have the meaning set forth in Section 3(c)
hereof.

          "Closing Date" shall mean November 19, 2003.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Collection Period" shall mean, (i) with respect to each November
Distribution Date, the period beginning on the day after the May Distribution
Date of such year and ending on such November Distribution Date, inclusive and
(ii) with respect to each May Distribution Date, the period beginning on the
day after the November Distribution Date of the prior year and ending on such
May Distribution Date, inclusive; provided, however, that clauses (i) and (ii)
shall be subject to Section 9(f) hereof.

          "Corporate Trust Office" shall mean the office of U.S. Bank Trust
National Association located at 100 Wall Street, New York, New York 10005.

          "Currency" shall mean United States Dollars.

          "Depository" shall mean The Depository Trust Company, its nominees
and their respective successors.

                                      3
<PAGE>

          "Distribution Date" shall mean May 15th and November 15th of each
year (or if such date is not a Business Day, the next succeeding Business
Day), commencing on May 15, 2004, and ending on the earlier of the Final
Scheduled Distribution Date and any date on which all Underlying Securities
are redeemed, prepaid or liquidated in whole for any reason other than at
their maturity.

          "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

          "Event of Default" shall mean (i) a default in the payment of any
interest on the Underlying Securities after the same becomes due and payable
(subject to any applicable grace period), (ii) a default in the payment of the
principal of or any installment of principal of the Underlying Securities when
the same becomes due and payable and (iii) any other event specified as an
"Event of Default" in the Indenture.

          "Exchange Act" shall mean the Securities and Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder.

          "Final Scheduled Distribution Date" shall mean the Distribution Date
in November of 2031, or if such day is not a Business Day, the next succeeding
Business Day.

          "Indenture" shall mean the indenture among the Underlying Securities
Issuer and the Underlying Securities Trustee, as supplemented, pursuant to
which the Underlying Securities were issued.

          "Liquidation Price" shall mean the price at which the Trustee sells
the Underlying Securities.

          "Maturity Date" shall have the meaning specified in Schedule I
hereto.

          "Moody's" shall mean Moody's Investors Service, Inc.

          "Optional Call" shall mean the call of the Certificates by the
Warrant Holder, in whole or in part, resulting from the exercise of Call
Warrants by the Warrant Holder, pursuant to Section 7(d) hereof.

          "Optional Exchange" shall mean the exchange of the Certificates by
the Trust for the Underlying Securities pursuant to Section 7(a) hereof.

          "Optional Exchange Date" shall mean any date on which Underlying
Securities subject to Optional Exchange are distributed to a
Certificateholder.

          "Ordinary Expenses" shall mean the Trustee's ordinary expenses and
overhead in connection with its services as Trustee, including the items
referred to in the definition of Ordinary Expenses in the Standard Terms.

                                      4
<PAGE>

          "Plan" means (a) an employee benefit plan (as defined in Section
3(3) of ERISA), (b) a plan described in Section 4975(e)(1) of the Code or (c)
any entity whose underlying assets are treated as assets of any such plan by
reason of such plan's investment in the entity.

          "Prepaid Ordinary Expenses" shall be zero for this Series.

          "Prospectus Supplement" shall mean the Prospectus Supplement, dated
November 7, 2003, and a supplement thereto, dated November 17, 2003, relating
to the Class A-1 Certificates.

          "QIB" shall have the meaning set forth in Section 3(e) hereof.

          "Rating Agencies" shall mean Moody's and S&P.

          "Record Date" shall mean, with respect to each Distribution Date,
the day immediately preceding the related Distribution Date.

          "Required Percentage--Amendment" shall be 66-2/3% of the aggregate
Voting Rights, unless the subject amendment requires the vote of holders of
only one class of Certificates pursuant to the Standard Terms, in which case
66-2/3% of the Voting Rights of such Class.

          "Required Percentage--Direction of Trustee" shall be 66-2/3% of the
aggregate Voting Rights.

          "Required Percentage--Remedies" shall be 66-2/3% of the aggregate
Voting Rights.

          "Required Percentage--Removal" shall be 66-2/3% of the aggregate
Voting Rights.

          "Required Rating" shall mean, in the case of Moody's, the rating
assigned to the Underlying Securities by Moody's as of the Closing Date, and,
in the case of S&P, the rating assigned to the Underlying Securities by S&P as
of the Closing Date.

          "Resale Restriction Termination Date" shall have the meaning set
forth in Section 3(e) hereof.

          "Rule 144A" shall have the meaning set forth in Section 3(e) hereof.

          "S&P" shall mean Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc.

          "SEC Reporting Failure" shall mean the date determined by the
Depositor within a reasonable time following the Underlying Securities
Issuer's either (x) having stated in writing that it intends permanently to
cease filing periodic reports required under the Exchange Act or (y) having
failed to file all required periodic reports for one full year.

                                      5
<PAGE>

          "Securities Act" shall mean the United States Securities Act of
1933, as amended.

          "Securities Intermediary" shall mean initially, U.S. Bank Trust
National Association.

          "Series" shall mean AT&T Note-Backed Series 2003-18.

          "Special Distribution Date" shall have the meaning specified in
Section 5 hereof.

          "Trustee Fee" shall mean the amount paid to the Trustee by the
Depositor on the Closing Date.

          "Trust Property" shall mean the Underlying Securities described on
Schedule I hereto, the Certificate Account and any additional Underlying
Securities sold to the Trust pursuant to Section 3(d) hereof.

          "UCC" shall mean the Uniform Commercial Code as in effect in the
applicable jurisdiction.

          "Underlying Securities" shall mean $40,000,000 aggregate principal
amount of 8.00% Senior Notes due November 15, 2031, issued by the Underlying
Securities Issuer, as set forth in Schedule I attached hereto (subject to
Section 3(d) hereof).

          "Underlying Securities Issuer" shall mean AT&T Corp.

          "Underlying Securities Trustee" shall mean The Bank of New York.

          "Underwriters" shall mean Lehman Brothers Inc., Banc of America
Securities LLC and U.S. Bancorp Piper Jaffray Inc.

          "Voting Rights" shall be allocated between the holders of the Class
A-1 Certificates and the holders of the Class A-2 Certificates, pro rata, in
proportion to the ratio of the Class A-1 Allocation to the Class A-2
Allocation as of any applicable Record Date. The Class A-1 Voting Rights will
be allocated among Class A-1 Certificateholders in proportion to the
respective principal balances of their respective Certificates and the Class
A-2 Voting Rights will be allocated among all Class A-2 Certificateholders in
proportion to the then outstanding notional amounts of their respective
Certificates.

          "Warrant Agent" shall mean initially, U.S. Bank Trust National
Association.

          "Warrant Agent Agreement" shall mean that certain Warrant Agent
Agreement, dated as of the date hereof, between the Depositor and U.S. Bank
Trust National Association, as Warrant Agent and as Trustee, as the same may
be amended from time to time.

          "Warrant Holder" shall mean the holder of a Call Warrant.

     (b) The terms listed below are not applicable to this Series.

               "Accounting Date"

                                      6
<PAGE>

               "Administrative Fees"

               "Advance"

               "Allowable Expense Amounts"

               "Basic Documents"

               "Call Premium Percentage"

               "Credit Support"

               "Credit Support Instrument"

               "Credit Support Provider"

               "Cut-off Date"

               "Eligible Expense"

               "Eligible Investments"

               "Exchange Rate Agent"

               "Fixed Pass-Through Rate"

               "Floating Pass-Through Rate"

               "Guaranteed Investment Contract"

               "Letter of Credit"

               "Limited Guarantor"

               "Limited Guaranty"

               "Minimum Wire Denomination"

               "Pass-Through Rate"

               "Place of Distribution"

               "Purchase Price"

               "Required Premium"

               "Required Principal"

               "Requisite Reserve Amount"

                                      7
<PAGE>

               "Retained Interest"

               "Sale Procedures"

               "Sub-Administration Account"

               "Sub-Administration Agreement"

               "Sub-Administration Agent"

               "Surety Bond"

               "Swap Agreement"

               "Swap Counterparty"

               "Swap Distribution Amount"

               "Swap Guarantee"

               "Swap Guarantor"

               "Swap Receipt Amount"

               "Swap Termination Payment"

     Section 3. Designation of Trust and Certificates. The Trust created
hereby shall be known as the "Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18 Trust." The Certificates evidencing certain
undivided ownership interests therein shall be known as "Corporate Backed
Trust Certificates, AT&T Note-Backed Series 2003-18." The Certificates shall
consist of the Class A-1 Certificates and the Class A-2 Certificates
(together, the "Certificates"). The Trust is also issuing call warrants with
respect to the Certificates ("Call Warrants").

     (a) The Class A-1 Certificates shall be held through the Depository in
book-entry form and shall be substantially in the form attached hereto as
Exhibit A-1. The Class A-2 Certificates shall initially be held through the
Depository in book-entry form and, as set forth in Section 3(e) below, shall
be held subsequent to the Closing Date in physical form or through the
Depository in book-entry form and shall be substantially in the form attached
hereto as Exhibit A-2. The Class A-1 Certificates shall be issued in
denominations of $25. The Class A-2 Certificates shall be issued in minimum
notional denominations of $100,000 and integral multiples of $1 in excess
thereof; provided, however, that on any Call Date on which a Warrant Holder
shall concurrently exchange Called Certificates for a distribution of
Underlying Securities in accordance with the provisions of Section 7 hereof,
Called Certificates may be issued in other denominations. Except as provided
in the Standard Terms and in paragraph (d) in this Section, the Trust shall
not issue additional Certificates or additional Call Warrants or incur any
indebtedness.

                                      8
<PAGE>

     (b) The Class A-1 Certificates shall consist initially of 1,600,000
Certificates having an initial aggregate certificate principal balance (the
"Certificate Principal Balance") of $40,000,000. The Class A-2 Certificates
are interest-only Certificates and shall have an initial aggregate notional
amount equal to the initial Certificate Principal Balance of the Class A-1
Certificates.

     (c) The holders of the Class A-1 Certificates will be entitled to receive
on each Distribution Date the interest, if any, received on the Underlying
Securities, to the extent necessary to pay interest at the applicable Class
A-1 Rate on the outstanding Certificate Principal Balance of the Class A-1
Certificates. The holders of the Class A-2 Certificates will be entitled to
receive on each Distribution Date the interest, if any, received on the
Underlying Securities, to the extent necessary to pay interest at a rate of
1.625% per annum (the "Class A-2 Rate") on the outstanding notional amount of
the Class A-2 Certificates, which notional amount shall be equal to the
Certificate Principal Balance of the Class A-1 Certificates. On the
Distribution Date occurring in May 2004, the Trustee shall cause the Trust to
pay to the Depositor the amount of interest accrued and paid on the Underlying
Securities from November 15, 2003, to but not including the Closing Date;
provided, however, that in the event an Optional Exchange Date shall occur
prior to the Distribution Date in May 2004, a pro rata portion of such amount
shall be paid to the Depositor on the Optional Exchange Date in accordance
with the provisions of Section 7(b)(ix) hereof. If the Depositor is not paid
any such amount on such date, it shall have a claim for such amount. If
Available Funds are insufficient to pay such amount, the Trustee will pay the
Depositor its pro rata share, based on the ratio the amount owed to the
Depositor bears to all amounts owed on the Certificates in respect of accrued
interest, of any proceeds from the recovery on the Underlying Securities.

     (d) The Depositor may sell to the Trustee additional Underlying
Securities on any date hereafter upon at least 3 Business Days' notice to the
Trustee (or such shorter period as shall be mutually satisfactory to the
Depositor and the Trustee) and upon (i) satisfaction of the Rating Agency
Condition and (ii) delivery of an Opinion of Counsel to the effect that the
sale of such additional Underlying Securities will not cause the Trust to be
taxed as an association or publicly traded partnership taxable as a
corporation for federal income tax purposes. Each condition to be satisfied
with respect to a sale of Underlying Securities on or prior to the Closing
Date shall be satisfied with respect to a sale of additional Underlying
Securities no later than the date of sale thereof, each representation and
warranty set forth in the Standard Terms to be made on the Closing Date shall
be made on such date of sale, and from and after such date of sale, all
Underlying Securities held by the Trustee shall be held on the same terms and
conditions. Upon such sale to the Trustee, the Trustee shall deposit such
additional Underlying Securities in the Certificate Account, and shall
authenticate and deliver to the Depositor, on its order, Class A-1
Certificates in a Certificate Principal Balance, and Class A-2 Certificates in
a notional amount, equal to the principal amount of such additional Underlying
Securities, and Call Warrants related thereto. Any such additional Class A-1
Certificates and Class A-2 Certificates authenticated and delivered shall have
the same terms and rank pari passu with the corresponding classes of
Certificates previously issued in accordance with this Series Supplement.

     (e) No Class A-2 Certificate may be offered, resold, assigned or
otherwise transferred (including by pledge or hypothecation) at any time prior
to (x) the date which is two years, or such shorter period of time as
permitted by Rule 144(k) under the Securities Act, after the later

                                      9
<PAGE>

of the original issue date of such Class A-2 Certificates and the last date on
which the Depositor or any "affiliate" (as defined in Rule 144 under the
Securities Act) of the Depositor was the owner of such Class A-2 Certificates
(or any predecessor thereto) or (y) such later date, if any, as may be
required by a change in applicable securities laws (the "Resale Restriction
Termination Date") unless such offer, resale, assignment or transfer is (i) to
the Trust, (ii) pursuant to an effective registration statement under the
Securities Act, (iii) to a qualified institutional buyer (a "QIB"), as such
term is defined in Rule 144A promulgated under the Securities Act ("Rule
144A"), in accordance with Rule 144A or (iv) pursuant to another available
exemption from registration provided under the Securities Act (including
transfers to Accredited Investors), and, in each of cases (i) through (iv), in
accordance with any applicable securities laws of any state of the United
States and other jurisdictions. Prior to any offer, resale, assignment or
transfer of any Class A-2 Certificates in the manner described in clause (iii)
above, the prospective transferee and the prospective transferor shall be
required to deliver to the Trustee an executed copy of an Investment Letter
with respect to the Class A-2 Certificates to be transferred substantially in
the form of Exhibit C hereto and in the event the resale, assignment or
transfer shall involve Class A-2 Certificates then being held in physical
form, such A-2 Certificates shall be delivered to the Trustee for cancellation
and the Trustee shall instruct the Depository to increase the aggregate
notional amount of the Class A-2 Certificates held in book-entry form by an
amount equal to the aggregate notional amount of Class A-2 Certificates so
resold, assigned or transferred and to issue a beneficial interest in such
global Class A-2 Certificates to such transferee. Prior to any offer, resale,
assignment or transfer of any Class A-2 Certificates in the manner described
in clause (iv) above, the prospective transferee and the prospective
transferor shall be required to deliver to the Trustee documentation
certifying that the offer, resale, assignment or transfer complies with the
provisions of said clause (iv) and, in the event any such Class A-2
Certificate shall then be held in book-entry form and such resale, assignment
or transfer shall be to an Accredited Investor that is not a QIB, the Trustee
shall instruct the Depository to decrease the aggregate notional amount of the
Class A-2 Certificates held in book-entry form and the Trustee shall
authenticate and deliver one or more Class A-2 Certificates in physical form
in an aggregate notional amount equal to the amount of Class A-2 Certificates
resold, assigned or transferred. In addition to the foregoing, each
prospective transferee of any Class A-2 Certificates in the manner
contemplated by clause (iii) above shall acknowledge, represent and agree as
follows:

     (1)  The transferee (x) is a QIB, (y) is aware that the sale to it is
          being made in reliance on Rule 144A and (z) is acquiring such Class
          A-2 Certificates for its own account or for the account of a QIB.

     (2)  The transferee understands that the Class A-2 Certificates are being
          offered in a transaction not involving any public offering in the
          United States within the meaning of the Securities Act, and that the
          Class A-2 Certificates have not been and will not be registered
          under the Securities Act.

     (3)  The transferee agrees that (A) if in the future it decides to offer,
          resell, pledge or otherwise transfer the Class A-2 Certificates
          prior to the Resale Restriction Termination Date, such Class A-2
          Certificates shall only be offered, resold, assigned or otherwise
          transferred (i) to the Trust, (ii) pursuant to an effective
          registration statement under the Securities Act, (iii) to a QIB, in
          accordance with

                                      10
<PAGE>

          Rule 144A or (iv) pursuant to another available exemption from
          registration provided under the Securities Act (including any
          transfer to an Accredited Investor), and, in each of cases (i)
          through (iv), in accordance with any applicable securities laws of
          any state of the United States and other jurisdictions and (B) the
          transferee will, and each subsequent holder is required to, notify
          any subsequent purchaser of such Class A-2 Certificates from it of
          the resale restrictions referred to in clause (A) above.

     (f) The Class A-2 Certificates will, unless otherwise agreed by the
Depositor and the Trustee, bear a legend substantially to the following
effect:

          "THIS CLASS A-2 CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
          BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A
          REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO AN EXEMPTION
          THEREFROM UNDER SUCH ACT. THE CLASS A-2 CERTIFICATE REPRESENTED
          HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THE
          SERIES SUPPLEMENT.

          EACH PURCHASER OF THIS CLASS A-2 CERTIFICATE IS HEREBY NOTIFIED THAT
          THE SELLER OF THIS CLASS A-2 CERTIFICATE MAY BE RELYING ON THE
          EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
          PROVIDED BY RULE 144A THEREUNDER."

     Section 4. Trust Certificates. The Trustee hereby acknowledges receipt,
on or prior to the Closing Date, of:

     (a) the Underlying Securities set forth on Schedule I hereto; and

     (b) all documents required to be delivered to the Trustee pursuant to
Section 2.01 of the Standard Terms.

     Section 5. Distributions.

     (a) Except as otherwise provided in Sections 3(c), 5(c), 5(d) and 5(i),
on each applicable Distribution Date (or such later date as specified in
Section 9(f)), the Trustee shall apply Available Funds in the Certificate
Account as follows:

          (i) The Trustee will pay the interest portion of Available Funds:

               (1) first, to the Trustee, as reimbursement for any remaining
          Extraordinary Trust Expenses incurred by the Trustee in accordance
          with Section 6(b) below and approved by 100% of the
          Certificateholders; and

                                      11
<PAGE>

               (2) second, to the holders of the Class A-1 Certificates,
          accrued interest at the applicable Class A-1 Rate, and to the
          holders of the Class A-2 Certificates, accrued interest at the Class
          A-2 Rate, pro rata in proportion to their entitlements thereto.

          (ii) the Trustee will pay the principal portion of Available Funds:

               (1) first, to the Trustee, as reimbursement for any remaining
          Extraordinary Trust Expenses incurred by the Trustee in accordance
          with Section 6(b) below and approved by 100% of the
          Certificateholders; and

               (2) second, to the holders of the Class A-1 Certificates, the
          Certificate Principal Balance of the Class A-1 Certificates (the
          Class A-2 Certificates are not entitled to distributions of
          principal).

         (iii) any Available Funds remaining in the Certificate Account after
     the payments set forth in clauses 5(a)(i) and 5(a)(ii) above shall be
     paid to the Trustee as reasonable compensation for services rendered to
     the Depositor, up to $1,000.

          (iv) the Trustee will pay any Available Funds remaining in the
     Certificate Account after the distributions in clauses 5(a)(i) through
     5(a)(iii) above to the holders of the Class A-1 Certificates and Class
     A-2 Certificates pro rata in proportion to the interest rate on each such
     class of Certificates.

Any portion of the Available Funds (i) that does not constitute principal of,
or interest on, the Underlying Securities, (ii) that is not received in
connection with a tender offer, redemption, prepayment or liquidation of the
Underlying Securities and (iii) for which allocation by the Trustee is not
otherwise contemplated by this Series Supplement, shall be remitted by the
Trustee to the Depositor.

     (b) [Reserved].

     (c) Notwithstanding the foregoing, if the Underlying Securities are
redeemed, prepaid or liquidated in whole or in part for any reason other than
due to the occurrence of an Event of Default, an SEC Reporting Failure, or the
Final Scheduled Distribution Date, the Trustee shall apply Available Funds in
the manner described in Section 5(h) in the following order of priority:

          (i)  first, to the Trustee, as reimbursement for any Extraordinary
               Trust Expenses incurred by the Trustee in accordance with
               Section 6(b) below and approved by 100% of the
               Certificateholders;

          (ii) second, to the holders of the Class A-1 Certificates, an amount
               equal to the principal amount of Underlying Securities so
               redeemed, prepaid or liquidated plus accrued and unpaid
               interest on the amount of Class A-1 Certificates redeemed in
               connection with such principal payment;

         (iii) third, to the holders of the Class A-2 Certificates, an amount
               not to exceed the present value of all amounts that would
               otherwise have been payable

                                      12
<PAGE>

               on the Class A-2 Certificates for the period from the date of
               such redemption or prepayment to the Final Scheduled
               Distribution Date using a discount rate equal to the then
               applicable Class A-1 Rate, assuming no delinquencies,
               deferrals, redemptions or prepayments on the Underlying
               Securities;

          (iv) fourth, to the Trustee, as reasonable compensation for services
               rendered to the Depositor, any remainder up to $1,000; and

          (v)  fifth, any remainder to the holders of the Class A-1
               Certificates and the Class A-2 Certificates pro rata in
               proportion to the ratio of the Class A-1 Allocation to the
               Class A-2 Allocation.

     (d) Notwithstanding the foregoing, if the Underlying Securities are
redeemed, prepaid or liquidated in whole or in part due to the occurrence of
an Event of Default, the Trustee shall distribute Available Funds to the
holders of the Class A-1 Certificates and the holders of the Class A-2
Certificates in accordance with the ratio of the Class A-1 Allocation to the
Class A-2 Allocation.

     (e) Unless otherwise instructed by holders of Certificates representing a
majority of the Voting Rights, thirty (30) days after giving notice pursuant
to Section 8 hereof, the Trustee shall sell the Underlying Securities pursuant
to Section 13 hereof and deposit the Liquidation Proceeds, if any, into the
Certificate Account for distribution not later than two (2) Business Days
after the receipt of immediately available funds in accordance with Section
5(d) hereof, provided, however, that if any Warrant Holder designates any day
on or prior to the proposed sale date as a Call Date and Optional Exchange
Date pursuant to Section 7, the portion of Underlying Securities related to
such Optional Exchange shall not be sold but shall be distributed to the
Warrant Holder pursuant to Section 7 and the Warrant Agent Agreement.

     (f) If the Trustee receives non-cash property in respect of the
Underlying Securities as a result of a payment default on the Underlying
Securities (including from the sale thereof), the Trustee will promptly give
notice to the Depository, or for any Certificates which are not then held by
DTC or any other depository, directly to the registered holders of the
Certificates then outstanding and unpaid and to the Warrant Agent. Such notice
shall state that the Trustee shall, and the Trustee shall, not later than 30
days after the receipt of such property, allocate and distribute such property
to the holders of Class A-1 Certificates and Class A-2 Certificates then
outstanding and unpaid (after deducting the costs incurred in connection
therewith) in accordance with Section 5(d) hereof. Property other than cash
will be liquidated by the Trustee, and the proceeds thereof distributed in
cash, only to the extent necessary to avoid distribution of fractional
securities to Certificateholders. In-kind distribution of such property to
Certificateholders, based on the market value of such property as of the date
of distribution to Certificateholders, will be deemed to reduce the
Certificate Principal Balance of the Class A-1 Certificates on a
dollar-for-dollar basis. The outstanding notional amounts of the Class A-2
Certificates shall be reduced, pro rata among all Class A-2
Certificateholders, by an amount equal to the amount by which the Certificate
Principal Balance of the Class A-1 Certificates is reduced.

                                      13
<PAGE>

     (g) Subject to Section 9(f) hereof, to the extent Available Funds are
insufficient to make any scheduled interest or principal payments on any class
of Certificates on any Distribution Date, any shortfall will be carried over
and will be distributed on the next Distribution Date (or date referred to in
Section 5(h) hereof) on which sufficient funds are available to pay such
shortfall.

     (h) If a payment with respect to the Underlying Securities is made to the
Trustee (i) after the payment date of the Underlying Securities on which such
payment was due or (ii) in connection with redemption, prepayment or
liquidation, in whole or in part, of the Underlying Securities for any reason
other than due to the occurrence of an Event of Default, an SEC Reporting
Failure or at their maturity, the Trustee will distribute any such amounts
received in accordance with the provisions of this Section 5 on the next
occurring Business Day (a "Special Distribution Date") as if the funds had
constituted Available Funds on the Distribution Date immediately preceding
such Special Distribution Date; provided, however, that the Record Date for
such Special Distribution Date shall be one Business Day prior to the day on
which the related payment was received with respect to the Underlying
Securities.

     (i) Notwithstanding Section 3.12 of the Standard Terms, upon the
occurrence of an SEC Reporting Failure, the Depositor shall instruct the
Trustee within a reasonable time to (i) notify the Warrant Agent that the
Underlying Securities are proposed to be sold and that any Call Warrants and
related Optional Exchange rights must be exercised no later than the date
specified in the notice (which shall be not less than ten Business Days after
the date of such notice) and (ii) to the extent that the Warrant Holders fail
to exercise their Call Warrants and related Optional Exchange rights on or
prior to such date, to sell the Underlying Securities and distribute the
proceeds of such sale to the Certificateholders in accordance with the
following order of priority: first, to the Trustee, as reimbursement for any
Extraordinary Trust Expenses incurred by the Trustee in accordance with
Section 6(b) below and approved by 100% of the Certificateholders; and second,
any remainder to the holders of the Class A-1 Certificates and the Class A-2
Certificates pro rata in proportion to the ratio of the Class A-1 Allocation
to the Class A-2 Allocation, as determined by the Calculation Agent.

     (j) On any date on which Underlying Securities are redeemed, prepaid or
liquidated for any reason, the aggregate outstanding notional amount of the
Class A-2 Certificates shall be reduced by an amount equal to the principal
amount of the Underlying Securities so redeemed, prepaid or liquidated, the
reduction for the Class A-2 Certificates to be allocated pro rata among all
Class A-2 Certificates.

     (k) (i) Within five Business Days (or such longer period as shall be
acceptable to the Trustee) of receipt of notice of an SEC Reporting Failure,
any Class A-1 Certificateholder or Class A-2 Certificateholder may direct the
Trustee to distribute all or a portion of such Certificateholder's pro rata
share of the Underlying Securities to it, in lieu of any proceeds received
upon liquidation of the Underlying Securities. The respective pro rata shares
of the Class A-1 and Class A-2 Certificateholders in the Underlying Securities
shall be determined by allocating the portion of the principal amount
remaining after reimbursement of the Trustee for any Extraordinary Trust
Expenses approved by 100% of the Certificateholders to the Class A-1
Certificateholders and the Class A-2 Certificateholders in accordance with the
ratio of the Class A-1 Allocation to the Class A-2 Allocation. The pro rata
share of each of the Class A-1

                                      14
<PAGE>

Certificateholders in the Underlying Securities to be distributed shall be
determined based on the then unpaid Certificate Principal Balances of their
Class A-1 Certificates and the pro rata share of each of the Class A-2
Certificateholders in the Underlying Securities to be distributed shall be
determined based on the then outstanding notional amounts of their respective
Certificates.

          (ii) Within five Business Days (or such longer period as shall be
     acceptable to the Trustee) of receipt of notice of an Event of Default or
     any other liquidation of the Underlying Securities by the Trustee, any
     Class A-2 Certificateholder may direct the Trustee to distribute all or a
     portion of such Class A-2 Certificateholder's pro rata share (as
     determined by the Calculation Agent in accordance with this Section 5(k))
     of the Underlying Securities to it, in lieu of any proceeds received upon
     liquidation of the Underlying Securities. Upon the occurrence of an Event
     of Default, each Class A-2 Certificateholder's pro rata share of the
     Underlying Securities shall be determined by allocating the principal
     amount of the Underlying Securities to the Class A-1 Certificateholders
     and the Class A-2 Certificateholders in accordance with the ratio of the
     Class A-1 Allocation to the Class A-2 Allocation. The pro rata share of
     each of the Class A-2 Certificateholders in the Underlying Securities to
     be distributed shall be determined based on the then outstanding notional
     amounts of their respective Certificates. In the event of a liquidation
     of the Underlying Securities by the Trustee for any reason other than
     upon the occurrence of an Event of Default or an SEC Reporting Failure,
     each Class A-2 Certificateholder's pro rata share of the Underlying
     Securities shall be equal to the lesser of (1) a pro rata share (based on
     the proportion of the aggregate notional amount of such holder's Class
     A-2 Certificates to the outstanding aggregate notional amount of the
     Class A-2 Certificates) of the principal amount of Underlying Securities
     remaining after the Trustee has allocated Available Funds in accordance
     with Sections 5(c)(i) and 5(c)(ii) hereof and (2) the present value of
     all amounts that would otherwise have been payable on such Class A-2
     Certificate for the period from the date of such redemption or prepayment
     to the Final Scheduled Distribution Date using a discount rate equal to
     the applicable Class A-1 Rate, assuming no delinquencies, deferrals,
     redemptions or prepayments on the Underlying Securities.

          (iii) The amount requested to be distributed pursuant to Section
     5(k)(i) or 5(k)(ii) must be in an even multiple of the minimum
     denomination of the Underlying Securities and may not exceed such
     requesting Certificateholder's pro rata share (as determined by the
     Calculation Agent in accordance with this Section 5(k)) of the Underlying
     Securities. Upon receipt of any such direction from a Class A-1
     Certificateholder or Class A-2 Certificateholder, the Trustee shall not
     liquidate the requested portion of Underlying Securities and instead
     shall cause such Underlying Securities to be distributed to the
     requesting Class A-1 Certificateholder or Class A-2 Certificateholder;
     provided, that the Trustee shall not cause the distribution of any
     Underlying Securities to any Class A-1 Certificateholder or Class A-2
     Certificateholder unless, but for the requesting Class A-1
     Certificateholder or Class A-2 Certificateholder's giving direction in
     accordance with this Section 5(k), such Underlying Securities would be
     liquidated as otherwise provided in this Agreement. Any portion of any
     Class A-1 Certificateholder's or Class A-2 Certificateholder's pro rata
     share of the Underlying Securities that is not distributed, based on the
     failure to meet the minimum denomination requirements or otherwise, shall
     be sold in accordance with the provisions of Section 5(e)

                                      15
<PAGE>

     or 5(i) hereof, as applicable and the proceeds thereof distributed to
     such Class A-1 Certificateholder or Class A-2 Certificateholder.

          (iv) All decisions and determinations of the Calculation Agent
     pursuant to this Section 5(k) shall be in its sole discretion and shall,
     in the absence of manifest error, be conclusive for all purposes and
     irrevocably binding upon the Certificateholders.

     Section 6. Trustee's Fees.

     (a) As compensation for its services hereunder, the Trustee shall be
entitled to the Trustee Fee and any amounts payable under clauses 5(a)(iii)
and 5(b)(iv) above. The Trustee Fee shall be paid by the Depositor and not
from Trust Property. The Trustee shall bear all Ordinary Expenses. Failure by
the Depositor to pay such amount shall not entitle the Trustee to any payment
or reimbursement from the Trust, nor shall such failure release the Trustee
from the duties it is required to perform under the Trust Agreement.

     (b) Extraordinary Expenses shall not be paid out of the Trust Property
unless all the holders of the Class A-1 Certificates and Class A-2
Certificates then outstanding have directed the Trustee to incur such
Extraordinary Expenses. The Trustee may incur other Extraordinary Expenses if
any lesser percentage of the Certificateholders requesting such action
pursuant hereto reimburse the Trustee for the cost thereof from their own
funds in advance. If Extraordinary Expenses are not approved unanimously as
set forth in the first sentence of this Section 6(b), such Extraordinary
Expenses shall not be an obligation of the Trust, and the Trustee shall not
file any claim against the Trust therefor notwithstanding failure of
Certificateholders to reimburse the Trustee.

     Section 7. Optional Call; Optional Exchange.

     (a) On (A) any Distribution Date, (B) any date on which the Underlying
Securities Issuer consummates a tender offer for some or all of the Underlying
Securities or (C) any date on which the Underlying Securities are to be
redeemed by the Underlying Securities Issuer, any holder of Class A-1
Certificates, Class A-2 Certificates and the related Call Warrants, if Call
Warrants related to such Certificates are outstanding, may exchange such
Certificates and, if applicable, Call Warrants, for a distribution of
Underlying Securities representing the same percentage of the Underlying
Securities as such Certificates represent of all outstanding Certificates. On
any Call Date, any Warrant Holder may exchange Called Certificates for a
distribution of Underlying Securities representing the same percentage of
Underlying Securities as such Called Certificates represent of all outstanding
Certificates; provided that any such exchange shall either (x) result from an
exercise of all Call Warrants owned by such Warrant Holder or (y) occur on a
Call Date on which such Warrant Holder, alone or together with one or more
other Warrant Holders, shall exchange Called Certificates relating to
Underlying Securities having an aggregate principal amount equal to or in
excess of the product of (i) 0.1 and (ii) the aggregate principal amount of
the Underlying Securities deposited into the Trust on the Closing Date.

     (b) The following conditions shall apply to any Optional Exchange.

                                      16
<PAGE>

          (i) A notice specifying the number of Certificates being surrendered
     and the Optional Exchange Date shall be delivered to the Trustee no less
     than 5 days (or such shorter period acceptable to the Trustee) but not
     more than 30 days before the Optional Exchange Date; provided that for an
     Optional Exchange to occur on a Call Date, unless otherwise specified
     therein, the Call Notice shall be deemed to be the notice required
     hereunder.

          (ii) Certificates and, if applicable, the Call Warrants, shall be
     surrendered to the Trustee no later than 10:00 a.m. (New York City time)
     on the Optional Exchange Date; provided that for an Optional Exchange to
     occur on a Call Date, payment of the Call Price to the Warrant Agent
     pursuant to Section 1.1(a)(iii) of the Warrant Agent Agreement shall
     satisfy the requirement to surrender Certificates.

          (iii) Class A-1 Certificates and Class A-2 Certificates representing
     a like percentage of all outstanding Class A-1 Certificates and Class A-2
     Certificates shall be surrendered.

          (iv) The Trustee shall have received an opinion of counsel stating
     that the Optional Exchange would not cause the Trust to be treated as an
     association or publicly traded partnership taxable as a corporation for
     federal income tax purposes.

          (v) If the Certificateholder is the Depositor or any Affiliate of
     the Depositor, (1) the Trustee shall have received a certification from
     the Certificateholder that any Certificates being surrendered have been
     held for at least six months, and (2) the Certificates being surrendered
     may represent no more than 5% (or 25% in the case of Certificates
     acquired by the Underwriters but never distributed to investors) of the
     then outstanding Certificates.

          (vi) The Trustee shall not be obligated to determine whether an
     Optional Exchange complies with the applicable provisions for exemption
     under Rule 3a-7 of the Investment Company Act of 1940, as amended, or the
     rules or regulations promulgated thereunder.

          (vii) The provisions of Section 4.07 of the Standard Terms shall not
     apply to an Optional Exchange pursuant to this Section 7(b). This Section
     7(b) shall not provide any Person with a lien against, an interest in or
     a right to specific performance with respect to the Underlying
     Securities; provided that satisfaction of the conditions set forth in
     this Section 7(b) shall entitle the Certificateholder or Warrant Holder,
     as applicable, to a distribution thereof.

          (viii) The aggregate principal balance, or notional amount, as the
     case may be, of Certificates exchanged in connection with any Optional
     Exchange pursuant to this Section shall be in an amount that will entitle
     the Certificateholders thereof to Underlying Securities in an even
     multiple of the minimum denomination of such Underlying Securities.

          (ix) In the event such Optional Exchange shall occur prior to the
     Distribution Date in May 2004, the Certificateholders shall have paid to
     the Trustee, for distribution to

                                      17
<PAGE>

     the Depositor, on the Optional Exchange Date an amount equal to the sum
     obtained by multiplying the amount of accrued interest on the Underlying
     Securities from November 15, 2003 through, but excluding, the Closing
     Date by a fraction, the numerator of which shall be the number of
     Certificates being exchanged on such Optional Exchange Date and the
     denominator of which shall be the total number of Certificates.

     (c) Concurrently with the execution of this Series Supplement, the
Trustee, on behalf of the Trust, shall execute the Warrant Agent Agreement and
the Call Warrants, dated as of the date hereof and substantially in the form
of Exhibit B hereto, initially evidencing all of the Call Warrants. The
Trustee shall perform the Trust's obligations under the Warrant Agent
Agreement and the Call Warrants in accordance with their respective terms.

     (d) Call Warrants may be exercised by the Warrant Holder in whole or in
part on any Call Date. In addition to the conditions set forth in Section 1.1
of the Warrant Agent Agreement, the following conditions shall apply to any
Optional Call.

          (i) [Reserved.]

          (ii) The Warrant Holder shall have provided a certificate of
     solvency to the Trustee.

          (iii) Upon receipt of a Call Notice, the Trustee shall provide a
     conditional call notice to the Depository not less than 3 Business Days
     prior to the Call Date.

          (iv) Delivery of a Call Notice does not give rise to an obligation
     on the part of the Warrant Holder to pay the Call Price. If, by 10:00
     a.m. (New York City time) on the Call Date, the Warrant Holder has not
     paid the Call Price, except in connection with a Call Notice relating to
     a tender offer for or redemption of the Underlying Securities, then the
     Call Notice shall automatically expire and none of the Warrant Holder,
     the Warrant Agent or the Trustee shall have any obligation with respect
     to the Call Notice. The expiration of a Call Notice shall in no way
     affect the Warrant Holder's right to deliver a Call Notice at a later
     date. The Call Price for a call in connection with a tender offer or
     redemption shall be deducted from the proceeds of a tender offer or
     redemption by the Trust pursuant to Section 7(g)(iii) or Section
     7(h)(iii), as applicable.

          (v) Subject to receipt of the Call Price, the Trustee shall pay the
     applicable portion of the Call Price to the Class A-1 and Class A-2
     Certificateholders on the Call Date. The Call Price for each Class of
     Certificates in respect of partial calls shall be allocated pro rata to
     the Certificateholders of such Class.

          (vi) The Trustee shall not consent to any amendment or modification
     of this Agreement (including the Standard Terms) which would adversely
     affect the Warrant Holders (including, without limitation, any alteration
     of the timing or amount of any payment of the Call Price or any other
     provision of this Agreement in a manner adverse to the Warrant Holders)
     without the prior written consent of 100% of the Warrant Holders. For
     purposes of this clause, no amendment, modification or supplement
     required to provide for any purchase by the Trustee of additional
     Underlying Securities and authentication and delivery by the Trustee of
     additional Certificates and Call

                                      18
<PAGE>

     Warrants pursuant to Section 3(d) shall be deemed to adversely affect the
     Warrant Holders.

          (vii) The Trustee shall not be obligated to determine whether an
     Optional Call complies with the applicable provisions for exemption under
     Rule 3a-7 of the Investment Company Act of 1940, as amended, or the rules
     or regulations promulgated thereunder.

     (e) This Section 7 shall not provide the Warrant Holder with a lien
against, an interest in or a right to specific performance with respect to the
Underlying Securities; provided that satisfaction of the conditions set forth
in Section 7(b) shall entitle the Certificateholders or the Warrant Holders,
as applicable, to a distribution of the Underlying Securities.

     (f) The rights of the Certificateholders under the Trust Agreement and
the Certificates are limited by the terms, provisions and conditions of the
Trust Agreement, the Warrant Agent Agreement and the Call Warrants with
respect to the exercise of the Call Warrants by the Warrant Holder. The
Certificateholders, by their acceptance of Certificates, covenant and agree to
tender any and all Called Certificates to the Trustee upon the Warrant
Holder's exercise of Call Warrants and payment of the Call Price for such
Certificates in accordance with the provisions hereof and of the Warrant Agent
Agreement.

     (g) (i) If the Trustee receives notice of a tender offer for some or all
of the Underlying Securities, the Trustee shall within one Business Day notify
the Warrant Agent and forward to the Warrant Agent copies of all materials
received by the Trustee in connection therewith. If the Trustee receives a
Call Notice from any Warrant Holder no later than five Business Days prior to
the expiration of the tender offer acceptance period that such Warrant Holder
desires to exercise all or a portion of its Call Warrants in connection with
the consummation of any such tender offer, then the Trustee shall tender, in
compliance with the tender offer requirements, an amount of Underlying
Securities equal to the amount of Underlying Securities that would be
distributable to the Warrant Holder with respect to an Optional Exchange of
the Called Certificates called by such Warrant Holder; provided that any
Optional Call or Optional Exchange undertaken in connection with any such
tender offer shall be subject to the provisions of Section 7 hereof.

          (ii) The Call Date and Optional Exchange Date for any exercise of
     Call Warrants in connection with a tender offer shall be deemed to be the
     Business Day on which such Underlying Securities are accepted for payment
     and paid for.

          (iii) The Call Price shall be deducted from the tender offer
     proceeds and paid to Certificateholders in accordance with Section
     7(d)(v), and the excess of the tender offer proceeds over the Call Price
     shall be paid to the exercising Warrant Holders pro rata in respect to
     their proportionate exercises of Call Warrants or, if the Call Price
     exceeds the tender offer proceeds, the amount of such excess shall be
     paid by the exercising Warrant Holders pro rata in respect to their
     proportionate exercises of Call Warrants.

          (iv) If fewer than all tendered Underlying Securities are accepted
     for payment and paid for, (A) the amount of Call Warrants exercised shall
     be reduced to an amount

                                      19
<PAGE>

     that corresponds to a number of Certificates that could be exchanged in
     an Optional Exchange for the Underlying Securities accepted for payment
     and paid for (without regard to any restrictions on the amount to be
     exchanged, so long as such restrictions would have been satisfied had all
     tendered Underlying Securities been accepted for payment and paid for);
     (B) each Warrant Holder's exercise shall be reduced by its share
     (proportionate to the amount specified in its exercise notice) of the
     amount of Underlying Securities not accepted for payment and paid for;
     (C) the Call Price shall be determined after giving effect to the
     reduction specified in clause (B); (D) the Call Warrants that relate to
     the reduction specified in clause (B) shall remain outstanding; and (E)
     the excess of the tender offer proceeds over the Call Price shall be
     allocated in proportion to the amount of Call Warrants deemed exercised
     as set forth in clause (A) above or, if the Call Price exceeds the tender
     offer proceeds the amount of such excess shall be paid by the exercising
     Warrant Holders pro rata in respect to their proportionate exercises of
     Call Warrants.

          (v) If the tender offer is terminated by the Underlying Securities
     Issuer without consummation thereof or if all tenders by the Trust of
     Underlying Securities are otherwise rejected, then (1) the Call Notices
     will be of no further force and effect, and (2) any Call Warrants
     relating to such Call Notices will not be exercised and will remain
     outstanding.

     (h) (i) If the Trustee receives notice of a redemption by the Underlying
Securities Issuer for some or all of the Underlying Securities, the Trustee
shall, within three Business Days, notify the Warrant Agent and forward to the
Warrant Agent copies of all materials received by the Trustee in connection
therewith. Any Warrant Holder that desires to call Underlying Securities in
connection with a redemption by the Underlying Securities Issuer shall send a
Call Notice to the Trustee no later than seven Business Days prior to the date
such Underlying Securities are to be redeemed.

          (ii) The Call Date and Optional Exchange Date for any exercise of
Call Warrants in connection with a redemption by the Underlying Securities
Issuer shall be deemed to be the Business Day on which such Underlying
Securities are redeemed by the Underlying Securities Issuer.

          (iii) The Call Price shall be deducted from the redemption proceeds
and paid to Certificateholders in accordance with Section 7(d)(v), and the
excess of the redemption proceeds over the Call Price shall be paid to the
exercising Warrant Holders pro rata in respect to their proportionate
exercises of Call Warrants.

          (iv) If fewer than all Underlying Securities are redeemed by the
Underlying Securities Issuer and the amount of Call Warrants exercised
corresponds to a number of Class A-1 and Class A-2 Certificates that could be
exchanged in an Optional Exchange for a principal amount of Underlying
Securities that exceeds the principal amount of Underlying Securities actually
redeemed, then, unless otherwise directed by any exercising Warrant Holder,
(A) the amount of Call Warrants exercised shall be reduced to an amount that
corresponds to a number of Class A-1 and Class A-2 Certificates that could be
exchanged in an Optional Exchange for the principal amount of Underlying
Securities redeemed by the Underlying Securities Issuer (without regard to any
restrictions on the amount to be exchanged); (B) each Warrant Holder's

                                      20
<PAGE>

exercise shall be reduced by its share (proportionate to the amount specified
in its exercise notice) of the amount of such excess; (C) the Call Price shall
be determined after giving effect to the reduction specified in clause (B);
(D) the Call Warrants that relate to the reduction specified in clause (B)
shall remain outstanding; and (E) the excess of the redemption proceeds over
the Call Price shall be allocated in proportion to the amount of Call Warrants
deemed exercised as set forth in clause (A) above.

          (v) If the Underlying Securities are not redeemed by the Underlying
Securities Issuer for any reason, then (1) the Call Notices will be of no
further force and effect, and (2) any Call Warrants relating to such Call
Notices will not be exercised and will remain outstanding.

     Section 8. Notices of Events of Default.

          As promptly as practicable after, and in any event within 30 days
after, the occurrence of any Event of Default actually known to the Trustee,
the Trustee shall give notice of such Event of Default to the Depository, or,
if any Certificates are not then held by DTC or any other depository, directly
to the registered holders of such Certificates, and to the Warrant Agent.
However, except in the case of an Event of Default relating to the payment of
principal of or interest on any of the Underlying Securities, the Trustee will
be protected in withholding such notice if in good faith it determines that
the withholding of such notice is in the interest of the Certificateholders.

     Section 9. Miscellaneous.

     (a) The provisions of Section 4.04, Advances, of the Standard Terms shall
not apply to the AT&T Note-Backed Series 2003-18 Certificates.

     (b) The provisions of Section 4.07, Optional Exchange, of the Standard
Terms shall not apply to the AT&T Note-Backed Series 2003-18 Certificates.

     (c) The Trustee shall simultaneously forward reports to
Certificateholders pursuant to Section 4.03 of the Standard Terms and to the
New York Stock Exchange.

     (d) Except as expressly provided herein, the Certificateholders shall not
be entitled to terminate the Trust or cause the sale or other disposition of
the Underlying Securities.

     (e) The provisions of Section 3.07(d) of the Standard Terms shall not
apply to the AT&T Note-Backed Series 2003-18 Certificates.

     (f) If the Trustee has not received payment with respect to a Collection
Period on the Underlying Securities on or prior to the related Distribution
Date, such distribution will be made promptly upon receipt of such payment. No
additional amounts shall accrue on the Certificates or be owed to
Certificateholders as a result of such delay; provided, however, that any
additional interest owed and paid by the Underlying Securities Issuer as a
result of such delay shall be paid to the Class A-1 Certificateholders and
Class A-2 Certificateholders pro rata in proportion to their respective
entitlements to such delayed payments.

                                      21
<PAGE>

     (g) The outstanding principal balance, or notional amount, as the case
may be, of the Certificates shall not be reduced by the amount of any Realized
Losses (as defined in the Standard Terms).

     (h) The Trust may not engage in any business or activities other than in
connection with, or relating to, the holding, protecting and preserving of the
Trust Property and the issuance of the Certificates and the Call Warrants, and
other than those required or authorized by the Trust Agreement or incidental
and necessary to accomplish such activities. The Trust may not issue or sell
any certificates or other obligations other than the Certificates and the Call
Warrants or otherwise incur, assume or guarantee any indebtedness for money
borrowed. Notwithstanding Section 3.05 of the Standard Terms, funds on deposit
in the Certificate Account shall not be invested. Section 2.01(f) of the
Standard Terms shall be superseded by this provision.

     (i) Notwithstanding anything in the Trust Agreement to the contrary, the
Trustee may be removed upon 60 days prior written notice delivered by the
holders of Class A-1 Certificates and Class A-2 Certificates representing the
Required Percentage--Removal.

     (j) In the event that the Internal Revenue Service challenges the
characterization of the Trust as a grantor trust, the Trustee shall then file
such forms as the Depositor may specify to establish the Trust's election
pursuant to Section 761 of the Code to exclude the Trust from the application
of Subchapter K of the Code and is hereby empowered to execute such forms on
behalf of the Certificateholders.

     (k) Notwithstanding anything in the Standard Terms to the contrary, the
Trustee, upon written direction by the Depositor, will execute the
Certificates.

     (l) In relation to Section 7.01(f) of the Standard Terms, any periodic
reports filed by the Trustee pursuant to the Exchange Act in accordance with
the customary practices of the Depositor, need not contain any independent
reports.

     (m) Notwithstanding anything in the Trust Agreement to the contrary, the
Trustee will have no recourse to the Underlying Securities.

     (n) A Plan fiduciary, whether or not a Certificateholder at such time,
may request in writing that the Trustee provide such Plan fiduciary with such
information as shall be necessary for it to determine whether any of the Call
Warrant holders is (i) a "party in interest" (within the meaning of ERISA,
Section 3(14)); or (ii) a "disqualified person" within the meaning of Internal
Revenue Code ("Code") Section 4975(e)(2) with respect to any employee benefit
plan or Plan identified to the Trustee by such Plan fiduciary at the time such
request is made in order for the Plan fiduciary to determine whether an
investment in the Certificates by such Plan is or would be permissible under
ERISA or the Code. Any such written request of a Plan fiduciary shall be
accompanied by a certification of the Plan fiduciary, opinion of counsel
experienced in such issues, and such other documentation as the Trustee may
require, in order to establish that such disclosure is necessary for the Plan
fiduciary to determine compliance with ERISA and the Code, as well as a
confidentiality agreement, whereby the Plan fiduciary agrees not to disclose
the identity of any Call Warrant holders except to any legal or other experts
as necessary to make such determination. The holder of a Call Warrant shall
upon reasonable request of the Trustee,

                                      22
<PAGE>

in order for the Trustee to satisfy its obligations to a Plan fiduciary,
provide the Trustee with any one or more of the following, in the sole
discretion of the Call Warrant holder: (i) a certificate that each of the Call
Warrant holders is not (x) a "party in interest" (within the meaning of ERISA,
Section 3(14)) with respect to any "employee benefit plan" as defined in
ERISA, Section 3(3); or (y) a "disqualified person" within the meaning of
Internal Revenue Code Section 4975(e)(2) with respect to a "Plan" as defined
in Code Section 4975(e)(1) except in each case with respect to plans sponsored
by the Call Warrant holder or its affiliates which cover employees of the Call
Warrant holder and/or such affiliates; (ii) a certificate that each of the
Call Warrant holders is not such a "party in interest" or "disqualified
person" with respect to any employee benefit plan or Plan identified to the
Trustee by such Plan fiduciary at the time such request is made; or (iii) a
written consent to the limited disclosure of the respective Call Warrant
holder's identity to a specific Plan fiduciary solely for purposes of allowing
the Trustee to satisfy its obligations to a Plan fiduciary.

     (o) The Trust will not merge or consolidate with any other entity without
confirmation from each Rating Agency that such merger or consolidation will
not result in the qualification, reduction or withdrawal of its then-current
rating on the Certificates.

     (p) All directions, demands and notices hereunder or under the Standard
Terms shall be in writing and shall be delivered as set forth below (unless
written notice is otherwise provided to the Trustee).

          If to the Depositor, to:

               Lehman ABS Corporation
               745 Seventh Avenue
               New York, New York  10019
               Attention: Structured Credit Trading
               Telephone: (212) 526-6575
               Facsimile: (201) 508-4621

          If to the Trustee or the Warrant Agent, to:

               U.S. Bank Trust National Association
               100 Wall Street
               New York, New York 10005
               Attention:  Corporate Trust
               Telephone: (646) 835-5500
               Facsimile: (212) 809-5459

               If to the Rating Agencies, to:

               Moody's Investors Service, Inc.
               99 Church Street
               New York, New York  10007
               Attention: CBO/CLO Monitoring Department
               Telephone: (212) 553-1494
               Facsimile: (212) 553-0355

                                      23
<PAGE>

     and to:

               Standard & Poor's Ratings Services
               55 Water Street
               New York, New York  10041
               Attention: Structured Finance Surveillance Group
               Telephone: (212) 438-2482
               Facsimile: (212) 438-2664

          If to the New York Stock Exchange, to:

               New York Stock Exchange, Inc.
               20 Broad Street
               New York, New York  10005
               Attention: Susan G. Waiter, Managing Director, Investment
                          Banking Services/Structured Products
               Telephone: (212) 656-2818
               Facsimile: (212) 656-5780

          Copies of all directions, demands and notices required to be given
to the Certificateholders hereunder or under the Standard Terms will also be
given to the Warrant Holders in writing as set forth in this Section 9, and
copies of all directions, demands and notices required to be given to the
Trustee hereunder or under the Standard Terms will also be given to the
Warrant Agent in writing as set forth in this Section 9(p).

     (q) Each of the representations, covenants and agreements made herein by
each of the Depositor and the Trustee are for the benefit of the
Certificateholders and the Warrant Holders.

     (r) The provisions of Section 2.01(d)(iii) of the Standard Terms shall
not apply to the AT&T Note-Backed Series 2003-18 Certificates and the
following shall be deemed to be inserted in its place:

          "at the time of delivery of the Underlying Securities, the Depositor
owns such Underlying Securities, has the right to transfer its interest in
such Underlying Securities and such Underlying Securities are free and clear
of any lien, pledge, encumbrance, right, charge, claim or other security
interest; and"

     (s) The Trustee shall appoint a firm of independent certified public
accountants to review each of the distribution reports prepared by the Trustee
pursuant to Section 4.03 of the Standard Terms and to verify (x) that such
reports and the calculations made therein were made accurately and in
accordance with the terms of the Trust Agreement and (y) that the Depositor
and the Trustee have each fulfilled their obligations under this Trust
Agreement. The Trustee shall instruct the accountants (i) to promptly report
to the Trustee any errors in such distribution reports discovered in verifying
such calculations and (ii) to render to the Trustee an annual examination
report, prepared in compliance with established or stated criteria as set
forth in the professional standards of the American Institute of Certified
Public Accountants, within 45 days (or such longer period as may be acceptable
to the Trustee) following the end of each calendar

                                      24
<PAGE>

year that specifies the calculations made in reviewing the distribution
reports prepared by the Trustee for the previous calendar year and such
accountants' associated findings.

     Section 10. Governing Law. THIS SERIES SUPPLEMENT AND THE TRANSACTIONS
DESCRIBED HEREIN SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED
WITHIN THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS
PROVISIONS THEREOF.

     Section 11. Counterparts. This Series Supplement may be executed in any
number of counterparts, each of which shall be deemed to be an original, and
all such counterparts shall constitute but one and the same instrument.

     Section 12. Termination of the Trust. The Trust shall terminate upon the
earliest to occur of (i) the payment in full at maturity or sale by the Trust
after a payment default, call or an acceleration or other early payment of the
Underlying Securities and the distribution in full of all amounts due to the
Class A-1 Certificateholders and Class A-2 Certificateholders; (ii) the
exercise of all outstanding Call Warrants by the Warrant Holder; (iii) the
final Distribution Date and (iv) the expiration of 21 years from the death of
the last survivor of the descendants of Joseph P. Kennedy, the late Ambassador
of the United States to the Court of St. James, living on the date hereof.

     Section 13. Sale of Underlying Securities; Optional Exchange. In the
event of a sale of the Underlying Securities pursuant to this Agreement or
pursuant to the instructions of the Warrant Agent under Section 1.2 of the
Warrant Agent Agreement, the Trustee shall solicit bids for the sale of the
Underlying Securities with settlement thereof on or before the third Business
Day after such sale from three leading dealers in the relevant market. Any of
the following dealers (or their successors) shall be deemed to qualify as
leading dealers: (1) Credit Suisse First Boston LLC, (2) Goldman, Sachs & Co.,
(3) Merrill Lynch, Pierce, Fenner & Smith Incorporated, (4) UBS Securities
LLC, (5) Citigroup Global Markets Inc., and (6) except in the case of a sale
related to the exercise of Call Warrants by the Depositor or any Affiliate
thereof, Lehman Brothers Inc. The Trustee shall not be responsible for the
failure to obtain a bid so long as it has made reasonable efforts to obtain
bids. If a bid for the sale of the Underlying Securities has been accepted by
the Trustee but the sale has failed to settle on the proposed settlement date,
the Trustee shall request new bids from such leading dealers. In the event of
an Optional Exchange, the Trustee shall only deliver the Underlying Securities
to the purchaser of such Underlying Securities or sell the Underlying
Securities pursuant to this Section 13, as the case may be, against payment in
same day funds deposited into the Certificate Account.

     Section 14. Amendments. Notwithstanding anything in the Trust Agreement
to the contrary, in addition to the other restrictions on modification and
amendment contained therein, the Trustee shall not enter into any amendment or
modification of the Trust Agreement which would adversely affect in any
material respect the interests of the holders of any class of Certificates
without the consent of the holders of 100% of such class of Certificates;
provided, however, that no such amendment or modification will be permitted
which would cause the Trust to be taxed as an association or publicly traded
partnership taxable as a corporation for federal

                                      25
<PAGE>

income tax purposes. Unless otherwise agreed, the Trustee shall provide five
Business Days written notice to each Rating Agency before entering into any
amendment or modification of the Trust Agreement pursuant to this Section 14.

     Section 15. Voting of Underlying Securities, Modification of Indenture.

     (a) The Trustee, as holder of the Underlying Securities, has the right to
vote and give consents and waivers in respect of the Underlying Securities as
permitted by the Depository and except as otherwise limited by the Trust
Agreement. In the event that the Trustee receives a request from the
Depository, the Underlying Securities Trustee or the Underlying Securities
Issuer for its consent to any amendment, modification or waiver of the
Underlying Securities, the Indenture or any other document thereunder or
relating thereto, or receives any other solicitation for any action with
respect to the Underlying Securities, the Trustee shall mail a notice of such
proposed amendment, modification, waiver or solicitation to each
Certificateholder of record as of such date. The Trustee shall request
instructions from the Certificateholders as to whether or not to consent to or
vote to accept such amendment, modification, waiver or solicitation. The
Trustee shall consent or vote, or refrain from consenting or voting, in the
same proportion as the Voting Rights of the Trust were actually voted or not
voted by the Certificateholders thereof as of a date determined by the Trustee
prior to the date on which such consent or vote is required; provided,
however, that, notwithstanding anything in the Trust Agreement to the
contrary, the Trustee shall at no time vote on or consent to any matter (i)
unless such vote or consent would not (based on an opinion of counsel) cause
the Trust to be taxed as an association or publicly traded partnership taxable
as a corporation under the Code, (ii) which would alter the timing or amount
of any payment on the Underlying Securities, including, without limitation,
any demand to accelerate the Underlying Securities, except in the event of a
default under the Underlying Securities or an event which with the passage of
time would become an event of default under the Underlying Securities and with
the unanimous consent of Certificateholders representing 100% of the aggregate
Voting Rights and 100% of the Warrant Holders, or (iii) which would result in
the exchange or substitution of any of the outstanding Underlying Securities
pursuant to a plan for the refunding or refinancing of such Underlying
Securities except in the event of a default under the Indenture and only with
the consent of Certificateholders representing 100% of the aggregate Voting
Rights and 100% of the Warrant Holders. The Trustee shall have no liability
for any failure to act resulting from Certificateholders' late return of, or
failure to return, directions requested by the Trustee from the
Certificateholders.

     (b) In the event that an offer is made by the Underlying Securities
Issuer to issue new obligations in exchange and substitution for any of the
Underlying Securities, pursuant to a plan for the refunding or refinancing of
the outstanding Underlying Securities or any other offer is made for the
Underlying Securities, the Trustee shall notify the Class A-1
Certificateholders, Class A-2 Certificateholders and the Warrant Holders of
such offer promptly. Subject to the rights of the Warrant Holders to exercise
Call Warrants in connection with a tender offer for the Underlying Securities,
the Trustee must reject any such offer unless an Underlying Securities event
of default has occurred and the Trustee is directed by the affirmative vote of
Certificateholders representing 100% of the aggregate Voting Rights to accept
such offer and the Trustee has received the tax opinion described above. If
pursuant to the preceding sentence, the Trustee accepts any such offer the
Trustee shall promptly notify the Rating Agencies.

                                      26
<PAGE>

     (c) If an event of default under the Indenture occurs and is continuing,
and if directed by a majority of the outstanding Class A-1 Certificateholders
and Class A-2 Certificateholders, the Trustee shall vote the Underlying
Securities in favor of directing, or take such other action as may be
appropriate to direct, the Underlying Securities Trustee to declare the unpaid
principal amount of the Underlying Securities and any accrued and unpaid
interest thereon to be due and payable.

     Section 16. Additional Depositor Representation. It is the express intent
of the parties hereto that the conveyance of the Underlying Securities by the
Depositor to the Trustee be, and be construed as, a sale of the Underlying
Securities by the Depositor and not a pledge of any Underlying Securities by
the Depositor to secure a debt or other obligation of the Depositor. In the
event that, notwithstanding the aforementioned intent of the parties, any
Underlying Securities are held to be property of the Depositor, then, it is
the express intent of the parties that such conveyance be deemed a pledge of
such Underlying Securities and all proceeds thereof by the Depositor to the
Trustee to secure a debt or other obligation of the Depositor, pursuant to
Section 10.07 of the Standard Terms. In connection with any such grant of a
security interest in the Underlying Securities and all proceeds thereof
(including any such grant in connection with any sale of additional Underlying
Securities pursuant to Section 3(d)), the Depositor hereby represents and
warrants to Trustee as follows:

     (i)  In the event the Underlying Securities are held to be property of
          the Depositor, then the Trust Agreement creates a valid and
          continuing security interest (as defined in the UCC) in the
          Underlying Securities in favor of the Securities Intermediary which
          security interest is prior to all other liens, and is enforceable as
          such as against creditors of, and purchasers from, the Depositor.

     (ii) The Underlying Securities have been credited to a trust account (the
          "Securities Account") established in the name of the Trustee in
          accordance with Section 2.01 of the Standard Terms. U.S. Bank Trust
          National Association, as securities intermediary (the "Securities
          Intermediary") has established the Securities Account and has agreed
          to treat the Underlying Securities as "financial assets" within the
          meaning of the UCC.

    (iii) Immediately prior to the transfer of the Underlying Securities to
          the Trust, the Depositor owned and had good and marketable title to
          the Underlying Securities free and clear of any lien, claim or
          encumbrance of any Person.

     (iv) The Depositor has received all consents and approvals required by
          the terms of the Underlying Securities for the transfer to the
          Trustee all of the Depositor's interest and rights in the Underlying
          Securities as contemplated by the Trust Agreement.

     (v)  The Depositor has taken all steps necessary to cause the Securities
          Intermediary to identify on its records that the Trustee is the
          Person owning the security entitlements credited to the Securities
          Account.

                                      27
<PAGE>

     (vi) Other than the security interest granted to the Trust pursuant to
          this Agreement, the Depositor has not assigned, pledged, sold,
          granted a security interest in or otherwise conveyed any interest in
          the Underlying Securities (or, if any such interest has been
          assigned, pledged or otherwise encumbered, it has been released).
          The Depositor has not authorized the filing of and is not aware of
          any financing statements against the Depositor that include a
          description of the Underlying Securities other than any financing
          statement relating to the security interest granted to the Trust
          hereunder. The Depositor is not aware of any judgment or tax lien
          filings against the Depositor.

    (vii) The Securities Account is not in the name of any Person other than
          the Trustee. The Depositor has not consented to the compliance by
          the Securities Intermediary, with entitlement orders of any Person
          other than the Trustee.

                                      28
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Series
Supplement to be duly executed by their respective authorized officers as of
the date first written above.

                                    LEHMAN ABS CORPORATION,
                                      as Depositor

                                    By: /s/ Paul Mitrokostas
                                        ------------------------------
                                        Name:   Paul Mitrokostas
                                        Title:  Senior Vice President

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      not in its individual capacity but
                                      solely as Trustee on behalf of the
                                      Corporate Backed Trust Certificates
                                      AT&T Note-Backed Series 2003-18 Trust

                                    By: /s/ David J. Kolibachuk
                                        ---------------------------
                                        Name:   David J. Kolibachuk
                                        Title:  Vice President

                                      29
<PAGE>

                                                                    SCHEDULE I

                        AT&T NOTE-BACKED SERIES 2003-18

                        UNDERLYING SECURITIES SCHEDULE

Underlying Securities:            8.00% Senior Notes due November 15, 2031.

Issuer:                           AT&T Corp.

CUSIP Number:                     001957BD0.

Principal Amount Deposited:       $40,000,000.

Original Issue Date:              The Underlying Securities were issued in
                                  connection with an exchange offer that
                                  expired on July 31, 2002.

Principal Amount of
Underlying Securities
Originally Issued:                $2,750,000,000.

Maturity Date:                    November 15, 2031.

Interest Rate:                    The Underlying Securities were issued with
                                  an initial interest rate of 8.00%.  However,
                                  such interest rate is subject to adjustment
                                  in connection with any downgrade or upgrade
                                  by S&P or Moody's of their rating of the
                                  Underlying Securities.  Accordingly, the
                                  Underlying Securities currently have an
                                  interest rate of 8.75%.

Interest Payment Dates:           May 15th and November 15th.

                                      I-1
<PAGE>

                                  EXHIBIT A-1
                      FORM OF TRUST CERTIFICATE CLASS A-1

                             CLASS A-1 CERTIFICATE
                             ---------------------

NUMBER 1                                        1,600,000 $25 PAR CERTIFICATES
                                                         CUSIP NO. 21988K 50 3

                      SEE REVERSE FOR CERTAIN DEFINITIONS

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE REPRESENTS A PROPORTIONATE UNDIVIDED BENEFICIAL
OWNERSHIP INTEREST IN THE TRUST AND DOES NOT EVIDENCE AN OBLIGATION OF, OR AN
INTEREST IN, AND IS NOT GUARANTEED BY THE DEPOSITOR OR THE TRUSTEE OR ANY OF
THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE TRUST ASSETS ARE
INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON.

          THE CERTIFICATEHOLDERS, BY THEIR ACCEPTANCE OF CERTIFICATES,
COVENANT AND AGREE TO TENDER ANY AND ALL CALLED CERTIFICATES TO THE TRUSTEE
UPON THE WARRANT HOLDER'S EXERCISE OF CALL WARRANTS AND PAYMENT OF THE CALL
PRICE FOR SUCH CERTIFICATES IN ACCORDANCE WITH THE PROVISIONS HEREOF AND OF
THE WARRANT AGENT AGREEMENT.

                                    A-1-1
<PAGE>

                            LEHMAN ABS CORPORATION

                               1,600,000 $25 PAR

                     CORPORATE BACKED TRUST CERTIFICATES,

                        AT&T NOTE-BACKED SERIES 2003-18

7.125% INITIAL INTEREST RATE

          evidencing a proportionate undivided beneficial ownership interest
in the Trust, as defined below, the property of which consists principally of
$40,000,000 aggregate principal amount of 8.00% Senior Notes due November 15,
2031, issued by AT&T Corp. (the "Underlying Securities Issuer") and all
payments received thereon (the "Trust Property"), deposited in trust by Lehman
ABS Corporation (the "Depositor").

          THIS CERTIFIES THAT CEDE & CO. is the registered owner of an
aggregate of $40,000,000 principal amount nonassessable, fully-paid,
proportionate undivided beneficial ownership interest in the Corporate Backed
Trust Certificates, AT&T Note-Backed Series 2003-18 Trust, formed by the
Depositor.

                                    A-1-2
<PAGE>

          The Trust was created pursuant to a Standard Terms for Trust
Agreements, dated as of January 16, 2001 (the "Standard Terms"), between the
Depositor and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the Series Supplement in respect of the AT&T
Note-Backed Series 2003-18, dated as of November 19, 2003 (the "Series
Supplement" and, together with the Standard Terms, the "Trust Agreement"),
between the Depositor and the Trustee. This Certificate does not purport to
summarize the Trust Agreement and reference is hereby made to the Trust
Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Trustee with respect hereto. A copy of the Trust Agreement
may be obtained from the Trustee by written request sent to the Corporate
Trust Office. Capitalized terms used but not defined herein have the meanings
assigned to them in the Trust Agreement.

          This Certificate is one of the duly authorized Certificates
designated as the "Corporate Backed Trust Certificates, AT&T Note-Backed
Series 2003-18, Class A-1" (herein called the "Certificates"). This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound. The Trust Property consists of: (i) Underlying Securities
described in the Trust Agreement, and (ii) all payments on or collections in
respect of the Underlying Securities accrued on or after November 19, 2003,
together with any and all income, proceeds and payments with respect thereto;
provided, however, that any income from the investment of Trust funds in
certain permitted investments ("Eligible Investments") does not constitute
Trust Property.

          Subject to the terms and conditions of the Trust Agreement
(including the availability of funds for distributions) and until the
obligation created by the Trust Agreement shall have terminated in accordance
therewith, distributions will be made on each Distribution Date, to the Person
in whose name this Certificate is registered on the applicable Record Date, in
an amount equal to such Certificateholder's proportionate undivided beneficial
ownership interest in the amount required to be distributed to the Holders of
the Certificates on such Distribution Date. The Record Date applicable to any
Distribution Date is the close of business on the day immediately preceding
such Distribution Date (whether or not a Business Day). If a payment with
respect to the Underlying Securities is made to the Trustee after the date on
which such payment was due, then the Trustee will distribute any such amounts
received on the next occurring Business Day.

          Each Certificateholder, by its acceptance of a Certificate,
covenants and agrees that such Certificateholder will not at any time
institute against the Trust, or join in any institution against the Trust of,
any bankruptcy proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Certificates
or the Trust Agreement.

          Distributions made on this Certificate will be made as provided in
the Trust Agreement by the Trustee by wire transfer in immediately available
funds, or check mailed to the Certificateholder of record in the Certificate
Register without the presentation or surrender of this Certificate or the
making of any notation hereon, except that with respect to Certificates
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such

                                     A-1-3
<PAGE>

nominee shall be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Except
as otherwise provided in the Trust Agreement and notwithstanding the above,
the final distribution on this Certificate will be made after due notice by
the Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the Corporate Trust Office or such other
location as may be specified in such notice.

          Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Trustee, by manual signature, this Certificate shall not
entitle the Holder hereof to any benefit under the Trust Agreement or be valid
for any purpose.

          THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE HOLDER HEREOF SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                    A-1-4
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed as of the date set forth below.

                                    CORPORATE BACKED TRUST
                                    CERTIFICATES, AT&T NOTE-BACKED
                                    SERIES 2003-18 TRUST

                                    By: U.S. BANK TRUST NATIONAL ASSOCIATION
                                    not in its individual capacity but solely
                                    as Trustee,

                                    By:
                                       --------------------------------
                                        Authorized Signatory

Dated: November 19, 2003

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18, described in the Trust Agreement referred to
herein.

U.S. BANK TRUST NATIONAL ASSOCIATION
not in its individual capacity but
solely as Trustee,

By:
   ---------------------------------
     Authorized Signatory

                                    A-1-5
<PAGE>

                           (REVERSE OF CERTIFICATE)

          The Certificates are limited in right of distribution to certain
payments and collections respecting the Underlying Securities, all as more
specifically set forth herein and in the Trust Agreement. The registered
Holder hereof, by its acceptance hereof, agrees that it will look solely to
the Trust Property (to the extent of its rights therein) for distributions
hereunder.

          The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the Trustee and the rights of the
Certificateholders under the Trust Agreement at any time by the Depositor and
the Trustee with the consent of the Holders of Class A-1 Certificates in the
manner set forth in the Series Supplement and the Standard Terms. Any such
consent by the Holder of this Certificate (or any predecessor Certificate)
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange hereof or in lieu hereof whether or not a notation of such consent is
made upon this Certificate. The Trust Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders
of any of the Certificates.

          The Certificates are issuable in fully registered form only in
denominations of $25.

          As provided in the Trust Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate
for registration of transfer at the offices or agencies of the Certificate
Registrar maintained by the Trustee in the Borough of Manhattan, the City of
New York, duly endorsed by or accompanied by an assignment in the form below
and by such other documents as required by the Trust Agreement, and thereupon
one or more new Certificates of the same class in authorized denominations
evidencing the same principal amount will be issued to the designated
transferee or transferees. The initial Certificate Registrar appointed under
the Trust Agreement is U.S. Bank Trust National Association.

          No service charge will be made for any registration of transfer or
exchange, but the Trustee may require exchange of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Certificates.

          The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Depositor, the Trustee, nor
any such agent shall be affected by any notice to the contrary.

          It is the intention of the parties to the Trust Agreement that the
Trust created thereunder shall constitute a fixed investment trust for federal
income tax purposes under Treasury Regulation Section 301.7701-4, and the
Certificateholder agrees to treat the Trust, any distributions therefrom and
its beneficial interest in the Certificates consistently with such
characterization.

          The Trust and the obligations of the Depositor and the Trustee
created by the Trust Agreement with respect to the Certificates shall
terminate upon the earliest to occur of (i)

                                     A-1-6
<PAGE>

the payment in full at maturity or sale by the Trust after a payment default
on or an acceleration or other early payment of the Underlying Securities and
the distribution in full of all amounts due to the Class A-1
Certificateholders and Class A-2 Certificateholders; (ii) the exercise of all
outstanding Call Warrants by the Warrant Holders; (iii) the Final Scheduled
Distribution Date and (iv) the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late Ambassador of
the United States to the Court of St. James, living on the date hereof.

          An employee benefit plan subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), a plan described in Section
4975(e) of the Code, an entity whose underlying assets include plan assets by
reason of any such plan's investment in the entity, including an individual
retirement account or Keogh plan (any such, a "Plan") may purchase and hold
Certificates if the Plan can represent and warrant that its purchase and
holding of the Certificates would not be prohibited under ERISA or the Code.

                                    A-1-7
<PAGE>

                                  ASSIGNMENT

          FOR VALUE RECEIVED the undersigned hereby sells, assigns and
transfers unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

(Please print or type name and address, including postal zip code, of
assignee) the within Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing ______________________ Attorney to
transfer said Certificate on the books of the Certificate Register, with full
power of substitution in the premises.

Dated:

                                              *

                                    Signature Guaranteed:

                                              *

*NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Signatures must be guaranteed
by an "eligible guarantor institution" meeting the requirements of the
Certificate Registrar, which requirements include membership or participation
in the Security Transfer Agent Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Certificate
Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                    A-1-8
<PAGE>

                                  EXHIBIT A-2
                      FORM OF TRUST CERTIFICATE CLASS A-2

                             CLASS A-2 CERTIFICATE
                             ---------------------

NUMBER 1                                                 CUSIP NO. 21988K AE 7

                      SEE REVERSE FOR CERTAIN DEFINITIONS

          THIS CLASS A-2 CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION UNDER
SUCH ACT IS IN EFFECT OR PURSUANT TO AN EXEMPTION THEREFROM UNDER SUCH ACT.
THE CLASS A-2 CERTIFICATE REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN
ACCORDANCE WITH THE TERMS OF THE SERIES SUPPLEMENT.

          EACH PURCHASER OF THIS CLASS A-2 CERTIFICATE IS HEREBY NOTIFIED THAT
THE SELLER OF THIS CLASS A-2 CERTIFICATE MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

          THE NOTIONAL AMOUNT OF THIS CLASS A-2 CERTIFICATE IS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING NOTIONAL AMOUNT OF THIS CLASS A-2
CERTIFICATE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS CERTIFICATE REPRESENTS A PROPORTIONATE UNDIVIDED BENEFICIAL
OWNERSHIP INTEREST IN THE TRUST AND DOES NOT EVIDENCE AN OBLIGATION OF, OR AN
INTEREST IN, AND IS NOT GUARANTEED BY THE DEPOSITOR OR THE TRUSTEE OR ANY OF
THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE OR THE TRUST ASSETS ARE
INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON.

                                     A-2-1
<PAGE>

          THE CERTIFICATEHOLDERS, BY THEIR ACCEPTANCE OF CERTIFICATES,
COVENANT AND AGREE TO TENDER ANY AND ALL CALLED CERTIFICATES TO THE TRUSTEE
UPON THE WARRANT HOLDER'S EXERCISE OF CALL WARRANTS AND PAYMENT OF THE CALL
PRICE FOR SUCH CERTIFICATES IN ACCORDANCE WITH THE PROVISIONS HEREOF AND OF
THE WARRANT AGENT AGREEMENT.

                                    A-2-2
<PAGE>

                            LEHMAN ABS CORPORATION

                     CORPORATE BACKED TRUST CERTIFICATES,

                        AT&T NOTE-BACKED SERIES 2003-18

                          $40,000,000 NOTIONAL AMOUNT

1.625% INTEREST RATE

FINAL SCHEDULED DISTRIBUTION DATE:  November 15, 2031

     evidencing a proportionate undivided beneficial ownership interest in the
Trust, as defined below, the property of which consists principally of
$40,000,000 aggregate principal amount of 8.00% Senior Notes due November 15,
2031, issued by AT&T Corp., and all payments received thereon (the "Trust
Property"), deposited in trust by Lehman ABS Corporation (the "Depositor").

          THIS CERTIFIES THAT CEDE & CO. is the registered owner of an
aggregate amount of $40,000,000 notional amount nonassessable, fully-paid,
proportionate undivided beneficial ownership interest in the Corporate Backed
Trust Certificates, AT&T Note-Backed Series 2003-18 Trust, formed by the
Depositor.

          The Trust was created pursuant to a Standard Terms for Trust
Agreements, dated as of January 16, 2001 (the "Standard Terms"), between the
Depositor and U.S. Bank Trust National Association , a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the Series Supplement, AT&T Note-Backed Series
2003-18, dated as of November 19, 2003 (the "Series Supplement" and, together
with the Standard Terms, the "Trust Agreement"), between the Depositor and the
Trustee. This Certificate does not purport to summarize the Trust Agreement
and reference is hereby made to the Trust Agreement for information with
respect to the interests, rights, benefits, obligations, proceeds and duties
evidenced hereby and the rights, duties and obligations of the Trustee with
respect hereto. A copy of the Trust Agreement may be obtained from the Trustee
by written request sent to the Corporate Trust Office. Capitalized terms used
but not defined herein have the meanings assigned to them in the Trust
Agreement.

          This Certificate is one of the duly authorized Certificates
designated as the "Corporate Backed Trust Certificates, AT&T Note-Backed
Series 2003-18, Class A-2" (herein called the "Certificates"). This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound. The Trust Property consists of: (i) Underlying Securities
described in the Trust Agreement, and (ii) all payments on or collections in
respect of the Underlying Securities accrued on or after November 19, 2003,
together with any and all income, proceeds and payments with respect thereto;

                                     A-2-3
<PAGE>

provided, however, that any income from the investment of Trust funds in
certain permitted investments ("Eligible Investments") does not constitute
Trust Property.

          Subject to the terms and conditions of the Trust Agreement
(including the availability of funds for distributions) and until the
obligation created by the Trust Agreement shall have terminated in accordance
therewith, distributions of interest will be made on this Certificate on each
Distribution Date.

          Subject to the terms and conditions of the Trust Agreement
(including the availability of funds for distributions) and until the
obligation created by the Trust Agreement shall have terminated in accordance
therewith, distributions will be made on each Distribution Date, to the Person
in whose name this Certificate is registered on the applicable Record Date, in
an amount equal to such Certificateholder's proportionate undivided beneficial
ownership interest in the amount required to be distributed to the Holders of
the Certificates on such Distribution Date. The Record Date applicable to any
Distribution Date is the close of business on the day immediately preceding
such Distribution Date (whether or not a Business Day). If a payment with
respect to the Underlying Securities is made to the Trustee after the date on
which such payment was due, then the Trustee will distribute any such amounts
received on the next occurring Business Day.

          Each Certificateholder, by its acceptance of a Certificate,
covenants and agrees that such Certificateholder will not at any time
institute against the Trust, or join in any institution against the Trust of,
any bankruptcy proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Certificates
or the Trust Agreement.

          Distributions made on this Certificate will be made as provided in
the Trust Agreement by the Trustee by wire transfer in immediately available
funds, or check mailed to the Certificateholder of record in the Certificate
Register without the presentation or surrender of this Certificate or the
making of any notation hereon, except that with respect to Certificates
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee shall be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Except as otherwise provided in the Trust Agreement and
notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the Corporate
Trust Office or such other location as may be specified in such notice.

          Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Trustee, by manual signature, this Certificate shall not
entitle the Holder hereof to any benefit under the Trust Agreement or be valid
for any purpose.

                                     A-2-4
<PAGE>

          THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE HOLDER HEREOF SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                    A-2-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed as of the date set forth below.

                                    CORPORATE BACKED TRUST
                                    CERTIFICATES, AT&T NOTE-BACKED
                                    SERIES 2003-18 TRUST

                                    By: U.S. BANK TRUST NATIONAL ASSOCIATION
                                    not in its individual capacity but solely
                                    as Trustee,

                                    By:
                                       -----------------------------
                                        Authorized Signatory

Dated: November 19, 2003

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18, described in the Trust Agreement referred to
herein.

U.S. BANK TRUST NATIONAL ASSOCIATION
not in its individual capacity but
solely as Trustee,

By:
   ---------------------------------
    Authorized Signatory

                                     A-2-6
<PAGE>

                           (REVERSE OF CERTIFICATE)

          The Certificates are limited in right of distribution to certain
payments and collections respecting the Underlying Securities, all as more
specifically set forth herein and in the Trust Agreement. The registered
Holder hereof, by its acceptance hereof, agrees that it will look solely to
the Trust Property (to the extent of its rights therein) for distributions
hereunder.

          The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the Trustee and the rights of the
Certificateholders under the Trust Agreement at any time by the Depositor and
the Trustee with the consent of the holders of Class A-2 Certificates in the
manner set forth in the Series Supplement and the Standard Terms. Any such
consent by the Holder of this Certificate (or any predecessor Certificate)
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Trust Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders
of any of the Certificates.

          The Certificates are issuable in fully registered form only in
denominations of $100,000 and in integral multiples of $1 in excess thereof.

          As provided in the Trust Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate
for registration of transfer at the offices or agencies of the Certificate
Registrar maintained by the Trustee in the Borough of Manhattan, the City of
New York, duly endorsed by or accompanied by an assignment in the form below
and by such other documents as required by the Trust Agreement, and thereupon
one or more new Certificates of the same class in authorized denominations
evidencing the same notional amount will be issued to the designated
transferee or transferees. The initial Certificate Registrar appointed under
the Trust Agreement is U.S. Bank Trust National Association.

          No service charge will be made for any registration of transfer or
exchange, but the Trustee may require exchange of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Certificates.

          The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Depositor, the Trustee, nor
any such agent shall be affected by any notice to the contrary.

          It is the intention of the parties to the Trust Agreement that the
Trust created thereunder shall constitute a fixed investment trust for federal
income tax purposes under Treasury Regulation Section 301.7701-4, and the
Certificateholder agrees to treat the Trust, any distributions therefrom and
its beneficial interest in the Certificates consistently with such
characterization.

          The Trust and the obligations of the Depositor and the Trustee
created by the Trust Agreement with respect to the Certificates shall
terminate upon the earliest to occur of (i)

                                     A-2-7
<PAGE>

the payment in full at maturity or sale by the Trust after a payment default
on or an acceleration or other early payment of the Underlying Securities and
the distribution in full of all amounts due to the Class A-1
Certificateholders and Class A-2 Certificateholders; (ii) the exercise of all
outstanding Call Warrants by the Warrant Holders; (iii) the Final Scheduled
Distribution Date and (iv) the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late Ambassador of
the United States to the Court of St. James, living on the date hereof.

          An employee benefit plan subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), a plan described in Section
4975(e) of the Code, an entity whose underlying assets include plan assets by
reason of any such plan's investment in the entity, including an individual
retirement account or Keogh plan (any such, a "Plan") may purchase and hold
Certificates if the Plan can represent and warrant that its purchase and
holding of the Certificates would not be prohibited under ERISA or the Code.

                                    A-2-8
<PAGE>

                                  ASSIGNMENT

          FOR VALUE RECEIVED the undersigned hereby sells, assigns and
transfers unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

(Please print or type name and address, including postal zip code, of
assignee) the within Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing _______________ Attorney to transfer
said Certificate on the books of the Certificate Register, with full power of
substitution in the premises.

Dated:

                                              *
                                     Signature Guaranteed:

                                              *

*NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Signatures must be guaranteed
by an "eligible guarantor institution" meeting the requirements of the
Certificate Registrar, which requirements include membership or participation
in the Security Transfer Agent Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Certificate
Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                    A-2-9
<PAGE>

                                   EXHIBIT B

                        FORM OF WARRANT AGENT AGREEMENT

                                     B-1

<PAGE>

                            WARRANT AGENT AGREEMENT

                      CORPORATE BACKED TRUST CERTIFICATES

                     AT&T NOTE-BACKED SERIES 2003-18 TRUST

          WARRANT AGENT AGREEMENT, dated as of November 19, 2003 (the "Warrant
Agent Agreement"), by and between LEHMAN ABS CORPORATION, as Depositor (the
"Depositor"), U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee (the "Trustee")
and U.S. BANK TRUST NATIONAL ASSOCIATION, as Warrant Agent (the "Warrant
Agent").

                             W I T N E S S E T H:

          WHEREAS, the Depositor created Corporate Backed Trust Certificates,
AT&T Note-Backed Series 2003-18 Trust (the "Trust"), a trust created under the
laws of the State of New York pursuant to a Standard Terms for Trust
Agreements, dated as of January 16, 2001 (the "Agreement"), between Lehman ABS
Corporation (the "Depositor") and U.S. Bank Trust National Association, a
national banking association, not in its individual capacity but solely as
Trustee (the "Trustee"), as supplemented by the Series Supplement 2003-18,
dated as of November 19, 2003 (the "Series Supplement" and, together with the
Agreement, the "Trust Agreement"), between the Depositor and the Trustee; and

          WHEREAS, in connection with the creation of the Trust and the
deposit therein of the Underlying Securities, it is desired to provide for the
issuance of trust certificates (the "Certificates") evidencing undivided
interests in the Trust and call warrants with respect to the Certificates
("Call Warrants").

          NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants expressed herein, it is hereby agreed by and between the
Depositor, the Warrant Agent and the Trustee that except as otherwise
specified herein or as the context may otherwise require, capitalized terms
used herein but not defined herein shall have the respective meanings set
forth below in the Series Supplement, and as follows:

                                  ARTICLE I

                           EXERCISE OF CALL WARRANTS

     Section 1.1 Manner of Exercise. (a) Call Warrants may be exercised by any
holder thereof (each, a "Warrant Holder") in whole or in part on any Call
Date. The following conditions shall apply to any exercise of Call Warrants:

<PAGE>

               (i) A notice (each, a "Call Notice") specifying the number of
          Call Warrants being exercised and the Call Date shall be delivered
          to the Warrant Agent and the Trustee at least 5 Business Days before
          such Call Date.

               (ii) The Warrant Holder shall surrender the Call Warrants to
          the Warrant Agent at its office specified in Section 7.3 hereof no
          later than 10:00 a.m. (New York City time) on such Call Date.

               (iii) Except as otherwise provided herein in connection with a
          Call Notice relating to a tender offer for or redemption of
          Underlying Securities, the Warrant Holder shall have made payment to
          the Warrant Agent, by wire transfer or other immediately available
          funds acceptable to the Warrant Agent, in the amount of the Call
          Price, no later than 10:00 a.m. (New York City time) on the Call
          Date.

               (iv) The Warrant Holder may not exercise the Call Warrants at
          any time when such Warrant Holder is insolvent, and such Warrant
          Holder shall be required to certify that it is solvent at the time
          of exercise, by completing the form of subscription ("Form of
          Subscription") attached to the Call Warrants and delivering such
          completed Form of Subscription to the Trustee on or prior to the
          Call Date and by delivering to the Trustee a form reasonably
          satisfactory to the Trustee of the solvency certificate required
          pursuant to Section 7(d)(ii) of the Series Supplement.

               (v) The Warrant Holder shall have satisfied any other
          conditions to the exercise of Call Warrants set forth in Section
          7(d) of the Series Supplement.

          (b) Upon exercise of Call Warrants, any Warrant Holder other than
     the Depositor or any Affiliate of the Depositor shall be entitled to
     delivery by the Trustee of the Called Certificates. The "Called
     Certificates" shall be, in the case of the Class A-1 Certificates, Class
     A-1 Certificates having a Certificate Principal Balance equal to $25 per
     Call Warrant, and in the case of the Class A-2 Certificates, Class A-2
     Certificates having a notional balance equal to $100,000 per Call
     Warrant. Unless otherwise specified therein, each Call Notice shall be
     deemed to be notice of an Optional Exchange pursuant to Section 7(b) of
     the Series Supplement. Any Warrant Holder which is the Depositor or any
     Affiliate of the Depositor shall receive the proceeds of the sale of the
     Called Underlying Securities and shall not be entitled to receive the
     related Called Certificates or Called Underlying Securities. "Called
     Underlying Securities" are Underlying Securities which represent the same
     percentage of the Underlying Securities as the Called Certificates
     represent of the Class A-1 Certificates and the Class A-2 Certificates.

          (c) The Warrant Agent shall notify the Trustee immediately upon its
     receipt of a Call Notice and upon receipt of payment of the Call Price.
     The Warrant Agent shall transfer the amount of any paid Call Price to the
     Trustee in immediately available funds, for deposit in the Certificate
     Account and application pursuant to the Trust Agreement on the applicable
     Call Date (and, pending such transfer, shall hold such amount for the
     benefit of the Warrant Holder in a segregated trust account).

                                      2
<PAGE>

          (d) Delivery of a Call Notice does not give rise to an obligation on
     the part of the Warrant Holder to pay the Call Price. If, by 10:00 a.m.
     (New York City time) on the Call Date, the Warrant Holder has not paid
     the Call Price, except in connection with a Call Notice relating to a
     tender offer for or redemption of Underlying Securities, then the Call
     Notice shall automatically expire and none of the Warrant Holder, the
     Warrant Agent or the Trustee shall have any obligation with respect to
     the Call Notice. The expiration of a Call Notice shall in no way affect
     the Warrant Holder's right to deliver a Call Notice at a later date. The
     Call Price for a call in connection with a tender offer or redemption
     shall be deducted from the proceeds of a tender offer or a redemption by
     the Trust pursuant to Section 7(g)(iii) or Section 7(h)(iii), as
     applicable, of the Series Supplement.

     Section 1.2 Transfer of Certificates. As soon as practicable after each
surrender of Call Warrants in whole or in part on the Call Date and upon
satisfaction of all other requirements described in the Call Warrants and in
Section 1.1 hereof, the Warrant Agent shall instruct the Trustee as follows:

          (a) if Call Warrants are being exercised by any Warrant Holder other
     than the Depositor or any Affiliate of the Depositor, to cause the Called
     Certificates to reflect the Warrant Holder's beneficial ownership of such
     Certificates and if such Call Notice is also deemed to be a notice of
     Optional Exchange, to cause a distribution of Underlying Securities to
     the Warrant Holder in accordance with Section 7(a) of the Series
     Supplement, provided, however, that if such Call Notice and Optional
     Exchange is in connection with a tender offer or a redemption, the
     Warrant Agent shall instruct the Trustee to distribute to the exercising
     Warrant Holder the excess of the tender offer or redemption proceeds over
     the Call Price pursuant to Section 7(g)(iii) or Section 7(h)(iii), as
     applicable, of the Series Supplement, or

          (b) if the Call Warrants are being exercised by the Depositor or any
     Affiliate of the Depositor, to cause the Called Underlying Securities to
     be sold pursuant to Section 13 of the Series Supplement and to distribute
     the proceeds of such sale to the Warrant Holder.

     If such exercise is in part only, the Warrant Agent shall (i) in the case
of a Global Call Warrant, cause the Registered Warrant Amount to be decreased
to reflect the outstanding Call Warrants of the Warrant Holder and (ii) in the
case of a Certificated Call Warrant, instruct the Trustee to authenticate new
Call Warrants of like tenor, representing the outstanding Call Warrants of the
Warrant Holder, and the Warrant Agent shall deliver such Call Warrants to the
Warrant Holder.

          In each case, the Trustee shall act in accordance with such
instructions.

     Section 1.3 Cancellation and Destruction of Call Warrants. All Call
Warrants surrendered to the Warrant Agent for the purpose of exercise (in
whole or in part) pursuant to Section 1.1 and actually exercised, or for the
purpose of transfer or exchange pursuant to Article IV, shall be cancelled by
the Warrant Agent, and no Call Warrant (other than that reflecting any

                                      3
<PAGE>

such transfer or exchange) shall be issued in lieu thereof. The Warrant Agent
shall destroy all cancelled Call Warrants.

     Section 1.4 No Rights as Holder of Certificates Conferred by Call
Warrants. Prior to the exercise thereof, Call Warrants shall not entitle the
Warrant Holder to any of the rights of a holder of the Certificates,
including, without limitation, the right to receive the payment of any amount
on or in respect of the Certificates or to enforce any of the covenants of the
Trust Agreement.

     Section 1.5 Pro Rata Reduction of Call Warrants if Partial Redemption of
Underlying Securities. If Underlying Securities are redeemed in part by the
Underlying Securities Issuer and the Warrant Holders do not exercise their
Call Rights in connection with such partial redemption, the Warrant Amount or
Registered Warrant Amount, as the case may be, held by each Warrant Holder
shall be reduced proportionately so that the aggregate amount of Class A-1
Certificates callable by Call Warrants shall equal the amount of outstanding
Class A-1 Certificates after giving effect to such partial redemption and the
aggregate notional amount of Class A-2 Certificates callable by Call Warrants
shall equal the outstanding notional amount of Class A-2 Certificates after
giving effect to such partial redemption. The Warrant Agent shall make such
adjustments to its records as shall be necessary to reflect such reductions
and shall notify the Depository or each Warrant Holder, as the case may be, of
such adjustments.

                                  ARTICLE II

                               THE CALL WARRANTS

     Section 2.1 The Call Warrants.

          (a) The Call Warrants shall initially be issued as one or more
     Global Call Warrants in definitive, fully registered form without
     coupons, and DTC shall be the Depository. Upon issuance, the Global Call
     Warrants shall initially be deposited with the Trustee in its capacity as
     custodian on behalf of DTC. Such Global Call Warrants shall initially be
     registered in the name of Cede & Co. or another nominee designated by
     DTC. Global Call Warrants shall clear and settle in book-entry only form
     through the facilities of the Depository. Unless and until it is
     exchanged in whole or in part for Certificated Call Warrants, a Global
     Call Warrant may not be transferred except as a whole by the Depository
     for such Global Call Warrant to a nominee of such Depository, or by a
     nominee of such Depository to such Depository or another nominee of such
     Depository, or by such Depository or any such nominee to a successor of
     such Depository or a nominee of such successor. The Registered Warrant
     Amount of Call Warrants may from time to time be increased or decreased
     by adjustments made on the records of the Trustee, as custodian for DTC
     for such Global Call Warrant, as provided in this Section.

          (b) The Warrant Agent shall register the transfer or exchange of any
     Global Call Warrant without requiring any additional certification.

          (c) Interests of beneficial owners in a Global Call Warrant may be
     transferred in accordance with the rules and procedures of DTC and any
     other applicable

                                      4
<PAGE>

     Depositories. In connection with any exchange of beneficial ownership
     interests in a Global Call Warrant for Certificated Call Warrants
     pursuant to Section 2.3, the Warrant Agent shall reflect on its books
     and records the date of such exchange and a decrease in the Registered
     Warrant Amount of such Global Call Warrant in an amount equal to the
     Warrant Amount of the beneficial ownership interests in such Global Call
     Warrant being exchanged for Certificated Call Warrants.

     Section 2.2 Cancellation. All Call Warrants presented and surrendered for
payment, transfer or exchange shall be delivered to the Warrant Agent and
shall be promptly canceled by it. No Call Warrants shall be authenticated in
lieu of or in exchange for any Call Warrants canceled as provided in this
Section 2.2.

     Section 2.3 Certificated Call Warrants. Any Global Call Warrant
representing Call Warrants shall be exchangeable for Certificated Call
Warrants only if (i) the Depository advises the Depositor in writing that it
is no longer willing or able to properly discharge its responsibilities with
respect to the Call Warrants and the Depositor is unable to locate a qualified
successor within 60 calendar days or (ii) the Depositor, at its option,
advises the Trustee in writing that it elects to terminate the book-entry
system through the Depository. Any Global Call Warrant that is exchangeable
pursuant to the preceding sentence will be exchangeable for Certificated Call
Warrants of like tenor and Warrant Amount, as applicable, in any authorized
denomination or denominations and registered in the names of such Person or
Persons as the Depository shall direct. Upon such exchange, the Warrant Agent
shall execute and authenticate such Certificated Call Warrants and register
the same in the name of, and deliver the same to, such Person or Persons
consistent with the provisions hereof.

                                 ARTICLE III

                           RESTRICTIONS ON TRANSFER

     Section 3.1 Restrictive Legends. Except as otherwise permitted by this
Article III, each Call Warrant (including each Call Warrant issued upon the
transfer of any Call Warrant) shall be issued with a legend in substantially
the following form:

     "THIS CALL WARRANT (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED, SOLD OR
     OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION UNDER SUCH ACT IS IN
     EFFECT OR PURSUANT TO AN EXEMPTION THEREFROM UNDER SUCH ACT. THE CALL
     WARRANT REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH THE
     CONDITIONS SPECIFIED IN THE CALL WARRANTS.

     EACH PURCHASER OF THIS CALL WARRANT IS HEREBY NOTIFIED THAT THE SELLER OF
     THIS CALL WARRANT MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
     SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER."

     Section 3.2 Notice of Proposed Transfer. Prior to any transfer of any
Call Warrant or portion thereof, the Warrant Holder will give five (5)
Business Days (or such lesser period

                                      5
<PAGE>

acceptable to the Warrant Agent) prior written notice to the Warrant Agent of
such Warrant Holder's intention to effect such transfer.

                                  ARTICLE IV

               REGISTRATION AND TRANSFER OF CALL WARRANTS, ETC.

     Section 4.1 Warrant Register; Ownership of Call Warrants. The Warrant
Agent will keep a register in which the Warrant Agent will provide for the
registration of Call Warrants and the registration of transfers of Call
Warrants representing numbers of Call Warrants. Prior to due presentment of a
Call Warrant for registration of transfer, the Depositor, the Trustee, the
Warrant Agent and any agent of the Depositor, the Trustee or the Warrant Agent
may treat the Person in whose name any Call Warrant is registered as the owner
of such Call Warrant for any purposes whatsoever, and none of the Depositor,
the Trustee, the Warrant Agent or any agent of the Depositor, the Trustee or
the Warrant Agent shall be affected by notice to the contrary.

          None of the Depositor, the Trustee, the Warrant Agent or any agent of
the Depositor, the Trustee or the Warrant Agent shall have any responsibility
or liability for any aspect of the records relating to, or payments made on
account of, beneficial ownership interests of a Global Call Warrant or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.

          Notwithstanding the foregoing, with respect to any Global Call
Warrant, nothing herein shall prevent the Depositor, the Trustee, the Warrant
Agent or any agent of the Depositor, the Trustee or the Warrant Agent from
giving effect to any written certification, proxy or other authorization
furnished by any Depository, as a Warrant Holder, with respect to such Global
Call Warrant or impair, as between such Depository and owners of beneficial
interests in such Global Call Warrant, the operation of customary practices
governing the exercise of the rights of such Depository (or its nominee) as
Warrant Holder of such Global Call Warrant.

     Section 4.2 Transfer and Exchange of Call Warrants. (a) No Call Warrant
or any beneficial interest therein may be offered, resold, assigned or
otherwise transferred (including by pledge or hypothecation) unless such
offer, resale, assignment or transfer is to a qualified institutional buyer (a
"QIB"), as such term is defined in Rule 144A promulgated under the Securities
Act ("Rule 144A"), in accordance with Rule 144A, and in accordance with any
applicable securities laws of any state of the United States and other
jurisdictions. Prior to any offer, resale, assignment or transfer of any
Certificated Call Warrant, the prospective transferee and the prospective
transferor shall be required to deliver to the Trustee an executed copy of an
Investment Letter with respect to the Certificated Call Warrants to be
transferred substantially in the form of Exhibit A hereto. In addition to the
foregoing, each prospective transferee of any Certificated Call Warrants shall
acknowledge, represent and agree (and each prospective transferee of any
beneficial interest in a Global Call Warrant shall be deemed to acknowledge,
represent and agree) as follows:

     (1)  The transferee (x) is a QIB, (y) is aware that the sale to it is
          being made in reliance on Rule 144A and (z) is acquiring such Call
          Warrants for its own account or for the account of a QIB.

                                      6
<PAGE>

     (2)  The transferee understands that the Call Warrants are being offered
          in a transaction not involving any public offering in the United
          States within the meaning of the Securities Act, and that the Call
          Warrants have not been and will not be registered under the
          Securities Act.

     (3)  The transferee agrees that (A) if in the future it decides to offer,
          resell, pledge or otherwise transfer the Call Warrants prior to the
          Resale Restriction Termination Date, such Call Warrants shall only
          be offered, resold, assigned or otherwise transferred to a QIB, in
          accordance with Rule 144A, and in accordance with any applicable
          securities laws of any state of the United States and other
          jurisdictions and (B) the transferee will, and each subsequent
          holder is required to, notify any subsequent purchaser of such Call
          Warrants from it of the resale restrictions referred to in clause
          (A) above.

          (b) Upon surrender of any Call Warrant for registration of transfer
     or for exchange to the Warrant Agent, the Warrant Agent shall (subject to
     compliance with Article III) promptly execute and deliver, and cause the
     Trustee, on behalf of the Trust, to execute and deliver, in exchange
     therefor, a new Call Warrant of like tenor and evidencing a like number
     of Call Warrants, in the name of such Warrant Holder or as such Warrant
     Holder (upon payment by such Warrant Holder of any applicable transfer
     taxes or government charges) may direct; provided that as a condition
     precedent for transferring the Call Warrants, the prospective transferee
     shall deliver to the Trustee and the Depositor an executed copy of the
     Investment Letter (set forth as Exhibit A hereto) if the same is required
     pursuant to the provisions of clause (a) above.

     Section 4.3 Replacement of Call Warrants. Upon receipt of evidence
reasonably satisfactory to the Warrant Agent of the loss, theft, destruction
or mutilation of any Call Warrant and, in the case of any such loss, theft or
destruction of any Call Warrant, upon delivery of an indemnity bond in such
reasonable amount as the Warrant Agent may determine, or, in the case of any
such mutilation, upon the surrender of such Call Warrant for cancellation to
the Warrant Agent, the Warrant Agent shall execute and deliver, and cause the
Trustee, on behalf of the Trust, to execute and deliver, in lieu thereof, a
new Call Warrant of like tenor bearing a number not contemporaneously
outstanding.

     Section 4.4 Execution and Delivery of Call Warrants by Trustee. The
Trustee, on behalf of the Trust, hereby agrees (subject to compliance with
Article III) to execute and deliver such new Call Warrants issued in
accordance with Section 1.2 or this Article IV as the Warrant Agent shall
request in accordance herewith.

     Section 4.5 Additional Call Warrants. The Trustee shall execute and
deliver, in a manner consistent with Article II hereof, additional Call
Warrants on behalf of the Trust with respect to any additional Certificates
issued by the Trust following the sale of additional Underlying Securities to
the Trust, in accordance with the provisions of Section 3(d) of the Series
Supplement.

                                      7
<PAGE>

                                  ARTICLE V

                                  DEFINITIONS

          As used herein, unless the context otherwise requires, the following
terms have the following respective meanings:

          "Business Day": As defined in the Trust Agreement.

          "Call Date": Any Business Day (i) on or after November 19, 2008,
(ii) after the Underlying Securities Issuer announces that it will redeem,
prepay or otherwise make an unscheduled payment on the Underlying Securities,
(iii) after the Trustee notifies the Certificateholders of any proposed sale
of the Underlying Securities pursuant to the provisions of the Series
Supplement or (iv) on which the Underlying Securities Issuer consummates a
tender offer for some or all of the Underlying Securities.

          "Call Notice": As defined in Section 1.1(a)(i) hereof.

          "Call Price": For each related Call Date, (i) in the case of the
Class A-1 Certificates, 100% of the outstanding Certificate Principal Balance
of the Class A-1 Certificates being purchased pursuant to the exercise of the
Call Warrants, plus any accrued and unpaid interest on such amount to but
excluding the Call Date and, (ii) in the case of the Class A-2 Certificates,
the present value of all amounts that would otherwise have been payable on the
Class A-2 Certificates being purchased pursuant to the exercise of the Call
Warrants for the period from the related Call Date to the Final Scheduled
Distribution Date using a discount rate of 8.75% per annum, assuming no
delinquencies, deferrals, redemptions or prepayments on the Underlying
Securities shall occur after the related Call Date.

          "Call Warrant": As defined in the recitals.

          "Called Certificates": As defined in Section 1.1(b) hereof.

          "Called Underlying Securities": As defined in Section 1.1(b) hereof.

          "Certificated Call Warrant": Any Call Warrant in definitive,
physical form registered in the name of a Person other than the Depository or
its nominee.

          "Closing Date": November 19, 2003.

          "Depositor": As defined in the recitals.

          "Depositor Order": As defined in the Trust Agreement.

          "Depository": DTC initially, or such other depository appointed by
the Depositor.

          "DTC": The Depository Trust Company, a limited purpose trust company
organized under the laws of the State of New York, and any of its successors
or assigns.

                                      8
<PAGE>

          "Global Call Warrant": A registered Call Warrant in the name of the
Depository or its nominee.

          "Person": Any individual, corporation, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political
subdivision thereof.

          "QIB": As defined in Section 4.2 hereof.

          "Rating Agencies": Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc. and Moody's Investors Service and any of their
respective successors.

          "Registered Warrant Amount": The Warrant Amount represented by the
Global Call Warrants.

          "Responsible Officer": As defined in the Trust Agreement.

          "Rule 144A": As defined in Section 4.2.

          "Securities Act": The Securities Act of 1933, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect at the time.

          "Trust": As defined in the recitals.

          "Trust Agreement": As defined in the recitals.

          "Trustee": As defined in the recitals, or any successor thereto
under the Trust Agreement.

          "Warrant Agent": As defined in the recitals, or any successor
thereto under this Warrant Agent Agreement.

          "Warrant Agent Agreement": As defined in the recitals.

          "Warrant Amount": With respect to any Warrant Holder, the number of
Call Warrants relating to Class A-1 Certificates and Call Warrants relating to
the Class A-2 Certificates, held by such Warrant Holder.

          "Warrant Holder": As defined in Section 1.1(a) hereof.

                                  ARTICLE VI

                                 WARRANT AGENT

     Section 6.1 Limitation on Liability. The Warrant Agent shall be protected
and shall incur no liability for or in respect of any action taken, suffered
or omitted by it in connection with its administration of the Call Warrants in
reliance upon any instrument of assignment or

                                      9
<PAGE>

transfer, power of attorney, endorsement, affidavit, letter, notice,
direction, consent, certificate, statement or other paper or document in good
faith believed by it to be genuine and to be signed, executed and, where
necessary, verified and acknowledged, by the proper Person or Persons.

     Section 6.2 Duties of Warrant Agent. The Warrant Agent undertakes only
the specific duties and obligations imposed hereunder upon the following terms
and conditions, by all of which the Depositor, the Trust, the Trustee and each
Warrant Holder shall be bound:

          (a) The Warrant Agent may consult with legal counsel (who may be
     legal counsel for the Depositor), and the opinion of such counsel shall
     be full and complete authorization and protection to the Warrant Agent as
     to any action taken or omitted by it in good faith and in accordance with
     such opinion, provided the Warrant Agent shall have exercised reasonable
     care in the selection by it of such counsel.

          (b) Whenever in the performance of its duties hereunder, the Warrant
     Agent shall deem it necessary or desirable that any fact or matter be
     proved or established by the Depositor or the Trustee prior to taking or
     suffering any action hereunder, such fact or matter may be deemed to be
     conclusively proved and established by a Depositor Order or a certificate
     signed by a Responsible Officer of the Trustee and delivered to the
     Warrant Agent; and such certificate shall be full authorization to the
     Warrant Agent for any action taken or suffered in good faith by it
     hereunder in reliance upon such certificate.

          (c) The Warrant Agent shall be liable hereunder only for its own
     negligence, willful misconduct or bad faith.

          (d) The Warrant Agent shall not be liable for or by reason of any of
     the statements of fact or recitals contained herein or be required to
     verify the same, but all such statements and recitals are and shall be
     deemed to have been made by the Trust and the Depositor only.

          (e) The Warrant Agent shall not have any responsibility in respect
     of and makes no representation as to the validity of the Call Warrants or
     the execution and delivery thereof (except the due execution hereof by
     the Warrant Agent); nor shall it be responsible for any breach by the
     Trust of any covenant or condition contained in the Call Warrants; nor
     shall it by any act thereunder be deemed to make any representation or
     warranty as to the Certificates to be purchased thereunder.

          (f) The Warrant Agent is hereby authorized and directed to accept
     instructions with respect to the performance of its duties hereunder from
     the Chairman of the Board, the Chief Executive Officer, Chief Financial
     Officer, Chief Operating Officer, President, a Vice President, a Senior
     Vice President, a Managing Director, its Treasurer, an Assistant
     Treasurer, its Secretary or an Assistant Secretary of the Depositor, and
     any Responsible Officer of the Trustee, and to apply to such officers for
     advice or instructions in connection with its duties, and it shall not be
     liable for any action taken or suffered to be taken by it in good faith
     in accordance with instructions of any such officer.

          (g) The Warrant Agent and any shareholder, director, officer or
     employee of the Warrant Agent may buy, sell or deal in any of the Call
     Warrants or other securities of

                                      10
<PAGE>

     the Trust or otherwise act as fully and freely as though it were not
     Warrant Agent hereunder, so long as such persons do so in full compliance
     with all applicable laws. Nothing herein shall preclude the Warrant Agent
     from acting in any other capacity for the Trust, the Depositor or for any
     other legal entity.

          (h) The Warrant Agent may execute and exercise any of the rights or
     powers hereby vested in it or perform any duty hereunder either itself or
     by or through its attorneys or agents.

          (i) The Warrant Agent shall act solely as the agent of the Trust
     hereunder. The Warrant Agent shall not be liable except for the failure
     to perform such duties as are specifically set forth herein, and no
     implied covenants or obligations shall be read into the Call Warrants
     against the Warrant Agent, whose duties shall be determined solely by the
     express provisions thereof. The Warrant Agent shall not be deemed to be a
     fiduciary.

          (j) The Warrant Agent shall not be responsible for any failure on
     the part of the Trustee to comply with any of its covenants and
     obligations contained herein.

          (k) The Warrant Agent shall not be under any obligation or duty to
     institute, appear in or defend any action, suit or legal proceeding in
     respect hereof, unless first indemnified to its satisfaction, but this
     provision shall not affect the power of the Warrant Agent to take such
     action as the Warrant Agent may consider proper, whether with or without
     such indemnity. The Warrant Agent shall promptly notify the Depositor and
     the Trustee in writing of any claim made or action, suit or proceeding
     instituted against it arising out of or in connection with the Call
     Warrants.

          (l) The Trustee will perform, execute, acknowledge and deliver or
     cause to be performed, executed, acknowledged and delivered all such
     further acts, instruments and assurances as may be required by the
     Warrant Agent in order to enable it to carry out or perform its duties
     hereunder.

          (m) Upon request of a Warrant Holder, the Warrant Agent shall
     furnish to such Warrant Holder and/or a prospective purchaser designated
     by such Warrant Holder the information required to be delivered under
     Rule 144A(d)(4) under the Securities Act, to the extent that such
     information is in the possession of the Warrant Agent.

     Section 6.3 Change of Warrant Agent. The Warrant Agent may resign and be
discharged from its duties hereunder upon thirty (30) days notice in writing
mailed to the Depositor and the Trustee by registered or certified mail, and
to the Warrant Holders by first-class mail at the expense of the Depositor;
provided that no such resignation or discharge shall become effective until a
successor Warrant Agent shall have been appointed hereunder. The Depositor may
remove the Warrant Agent or any successor Warrant Agent upon thirty (30) days
notice in writing, mailed to the Warrant Agent or successor Warrant Agent, as
the case may be, and to the Warrant Holders by first-class mail; provided
further that no such removal shall become effective until a successor Warrant
Agent shall have been appointed hereunder. If the Warrant Agent shall resign
or be removed or shall otherwise become incapable of acting, the Depositor
shall promptly appoint a successor to the Warrant Agent, which may be
designated as

                                      11
<PAGE>

an interim Warrant Agent. If an interim Warrant Agent is designated, the
Depositor shall then appoint a permanent successor to the Warrant Agent, which
may be the interim Warrant Agent. If the Depositor shall fail to make such
appointment of a permanent successor within a period of thirty (30) days after
such removal or within sixty (60) days after notification in writing of such
resignation or incapacity by the resigning or incapacitated Warrant Agent or
by the Warrant Holder, then the Warrant Agent or registered Warrant Holder may
apply to any court of competent jurisdiction for the appointment of such a
successor. Any successor to the Warrant Agent appointed hereunder must be
rated in one of the four highest rating categories by the Rating Agencies. Any
entity which may be merged or consolidated with or which shall otherwise
succeed to substantially all of the trust or agency business of the Warrant
Agent shall be deemed to be the successor Warrant Agent without any further
action.

     Section 6.4 Warrant Agent Transfer Fee. The Warrant Agent will assess a
fee of $50.00 upon the issue of any new Call Warrant, such fee to be assessed
upon the new Warrant Holder.

                                 ARTICLE VII

                                 MISCELLANEOUS

     Section 7.1 Remedies. The remedies at law of the Warrant Holder in the
event of any default or threatened default by the Warrant Agent in the
performance of or compliance with any of the terms of the Call Warrants are
not and will not be adequate and, to the full extent permitted by law, such
terms may be specifically enforced by a decree for the specific performance of
any agreement contained herein or by an injunction against a violation of any
of the terms thereof or otherwise.

     Section 7.2 Limitation on Liabilities of Warrant Holder. Nothing
contained in this Warrant Agent Agreement shall be construed as imposing any
obligation on the Warrant Holder to purchase any of the Certificates except in
accordance with the terms thereof.

     Section 7.3 Notices. All notices and other communications under this
Warrant Agent Agreement shall be in writing and shall be delivered, or mailed
by registered or certified mail, return receipt requested, by a nationally
recognized overnight courier, postage prepaid, addressed (a) if to any Warrant
Holder, at the registered address of such Warrant Holder as set forth in the
register kept by the Warrant Agent or (b) if to the Warrant Agent, to 100 Wall
Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust or to
such other address notice of which the Warrant Agent shall have given to the
Warrant Holder and the Trustee or (c) if to the Trust or the Trustee, to the
Corporate Trust Office (as set forth in the Trust Agreement); provided that
the exercise of any Call Warrants shall be effective in the manner provided in
Article I. The Warrant Agent shall forward to the Warrant Holder any notices
received by it hereunder or pursuant to the Trust Agreement or this Agreement
by facsimile within one Business Day of receipt thereof.

     Section 7.4 Amendment. (a) This Warrant Agent Agreement may be amended
from time to time by the Depositor, the Trustee and the Warrant Agent without
the consent of any Warrant Holder, upon receipt of an opinion of counsel
satisfactory to the Warrant Agent that the

                                      12
<PAGE>

provisions hereof have been satisfied and that such amendment would not cause
the Trust to be taxed as an association or publicly traded partnership taxable
as a Corporation under the Code, for any of the following purposes: (i) to
cure any ambiguity or to correct or supplement any provision herein which may
be defective or inconsistent with any other provision herein or to provide for
any other terms or modify any other provisions with respect to matters or
questions arising under the Call Warrant which shall not adversely affect in
any material respect the interests of the Warrant Holder or any holder of a
Certificate; provided, however, that no amendment altering the timing or
amount of any payment of the Call Price shall be effected without the consent
of each Warrant Holder; or (ii) to evidence and provide for the acceptance of
appointment hereunder of a Warrant Agent other than U.S. Bank Trust National
Association.

          (b) Without limiting the generality of the foregoing, the Call
     Warrants may also be modified or amended from time to time by the
     Depositor, the Trustee and the Warrant Agent with the consent of Warrant
     Holders of 66-2/3% of each of the Call Warrants related to the Class A-1
     Certificates and the Call Warrants related to the Class A-2 Certificates,
     upon receipt of an opinion of counsel satisfactory to the Warrant Agent
     that the provisions hereof (including, without limitation, the following
     proviso) have been satisfied, for the purpose of adding any provisions to
     or changing in any manner or eliminating any of the provisions of the
     Call Warrants or of modifying in any manner the rights of the Warrant
     Holders; provided, however, that no such amendment shall (i) adversely
     affect in any material respect the interests of holders of Certificates
     without the consent of the holders of Certificates evidencing not less
     than the Required Percentage--Amendment of the aggregate Voting Rights of
     such affected Certificates (as such terms are defined in the Trust
     Agreement) and without written confirmation from the Rating Agencies that
     such amendment will not result in a downgrading or withdrawal of its
     rating of the Certificates; (ii) alter the terms on which Call Warrants
     are exercisable or the amounts payable upon exercise of a Warrant without
     the consent of the holders of Certificates evidencing not less than 100%
     of the aggregate Voting Rights of such affected Certificates and 100% of
     the affected Warrant Holders or (iii) reduce the percentage of aggregate
     Voting Rights required by (i) or (ii) without the consent of the holders
     of all such affected Certificates. Notwithstanding any other provision of
     this Warrant Agent Agreement, this Section 7.4(b) shall not be amended
     without the consent of 100% of the affected Warrant Holders.

          (c) Promptly after the execution of any such amendment or
     modification, the Warrant Agent shall furnish a copy of such amendment or
     modification to each Warrant Holder, to the Trustee and to the Rating
     Agencies. It shall not be necessary for the consent of Warrant Holders or
     holders of Certificates under this Section to approve the particular form
     of any proposed amendment, but it shall be sufficient if such consent
     shall approve the substance thereof. The manner of obtaining such
     consents and of evidencing the authorization of the execution thereof
     shall be subject to such reasonable regulations as the Warrant Agent may
     prescribe.

     Section 7.5 Expiration. The right to exercise the Call Warrants shall
expire on the earliest to occur of (a) the cancellation thereof, (b) the
termination of the Trust Agreement, or (c) the liquidation, disposition, or
maturity of all of the Underlying Securities.

                                      13
<PAGE>

     Section 7.6 Descriptive Headings. The headings in this Warrant Agent
Agreement are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof.

     Section 7.7 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE
LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS.

     Section 7.8 Judicial Proceedings; Waiver of Jury. Any judicial proceeding
brought against the Trust, the Trustee or the Warrant Agent with respect to
this Warrant Agent Agreement may be brought in any court of competent
jurisdiction in the County of New York, State of New York or of the United
States of America for the Southern District of New York and, by execution and
delivery of the Call Warrants, the Trustee on behalf of the Trust and the
Warrant Agent (a) accept, generally and unconditionally, the nonexclusive
jurisdiction of such courts and any related appellate court, and irrevocably
agree that the Trust, the Trustee and the Warrant Agent shall be bound by any
judgment rendered thereby in connection with this Warrant Agent Agreement or
the Call Warrants, subject to any rights of appeal, and (b) irrevocably waive
any objection that the Trust, the Trustee or the Warrant Agent may now or
hereafter have as to the venue of any such suit, action or proceeding brought
in such a court or that such court is an inconvenient forum.

     Section 7.9 Nonpetition Covenant; No Recourse. Each of (i) the Warrant
Holder by its acceptance thereof, and (ii) the Warrant Agent agrees, that it
shall not (and, in the case of the Warrant Holder, that it shall not direct
the Warrant Agent to), until the date which is one year and one day after the
payment in full of the Certificates and all other securities issued by the
Trust, the Depositor or entities formed, established or settled by the
Depositor, acquiesce, petition or otherwise invoke or cause the Trust, the
Depositor, or any such other entity to invoke the process of the United States
of America, any State or other political subdivision thereof or any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government for the purpose of commencing or
sustaining a case by or against the Trust, the Depositor or any such other
entity under a federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Trust, the Depositor or any such other entity
or all or any part of the property or assets of Trust, the Depositor or any
such other entity or ordering the winding up or liquidation of the affairs of
the Trust, the Depositor or any such other entity.

                                      14
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective duly authorized officers as of the date
first above written.

                                 LEHMAN ABS CORPORATION,
                                 as Depositor

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

                                 U.S. BANK TRUST NATIONAL ASSOCIATION,
                                 not in its individual capacity but solely
                                 as Trustee and Authenticating Agent

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

                                 U.S. BANK TRUST NATIONAL ASSOCIATION,
                                 as Warrant Agent

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

                                      15
<PAGE>

                                   EXHIBIT A

                           FORM OF INVESTMENT LETTER

                         QUALIFIED INSTITUTIONAL BUYER

                                                 Dated: ___________ __, _____

U.S. Bank Trust National Association,
as Trustee
100 Wall Street
New York, New York 10005

Lehman ABS Corporation,
as Depositor
745 Seventh Avenue
New York, New York  10019

     Re:  Corporate Backed Trust Certificates, AT&T Note-Backed Series 2003-18
          --------------------------------------------------------------------

Ladies and Gentlemen:

          In connection with its proposed purchase of Call Warrants (the "Call
Warrants") which represent the right to call $______________ aggregate
certificate principal balance of Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18 Class A-1 Certificates and $_______________
aggregate notional amount of Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18 Class A-2 Certificates, the undersigned purchaser
(the "Purchaser") confirms that:

     1. The Purchaser understands that substantial risks are involved in an
investment in the Call Warrants. The Purchaser represents that in making its
investment decision to acquire the Call Warrants, the Purchaser has not relied
on representations, warranties, opinions, projections, financial or other
information or analysis, if any, supplied to it by any person, including you,
Lehman ABS Corporation, as depositor (the "Depositor"), or U.S. Bank Trust
National Association, as trustee (the "Trustee"), or any of your or their
affiliates, except as expressly contained in written information, if any. The
Purchaser has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of an investment in the
Call Warrants, and the Purchaser is able to bear the substantial economic
risks of such an investment. The Purchaser has relied upon its own tax, legal
and financial advisors in connection with its decision to purchase the Call
Warrants.

     2. The Purchaser (A) is a "Qualified Institutional Buyer" (as defined in
Rule 144A under the Securities Act of 1933, as amended (the "1933 Act")) and
(B) is acquiring the Call Warrants for its own account or for the account of
an investor of the type described in clause (A) above as to each of which the
Purchaser exercises sole investment discretion. The Purchaser is purchasing
the Call Warrants for investment purposes and not with a view to, or for, the
offer or sale in connection with, a public distribution or in any other manner
that would violate the 1933 Act or the securities or blue sky laws of any
state.

                                      A-1
<PAGE>

     3. The Purchaser understands that the Call Warrants have not been and
will not be registered under the 1933 Act or under the securities or blue sky
laws of any state, and that (i) if it decides to resell, pledge or otherwise
transfer any Security, such resale, pledge or other transfer must comply with
the provisions of the Warrant Agent Agreement relating to the Call Warrants
(including, without limitation, the provisions of Section 4.2 thereof) and
(ii) it will, and each subsequent holder will be required to, notify any
purchaser of any Security from it of the resale restrictions referred to in
clause (i) above.

     4. The Purchaser understands that each of the Call Warrants will bear a
legend substantially to the following effect, unless otherwise agreed by the
Depositor and the Trustee:

             "THIS CALL WARRANT (OR ITS PREDECESSOR) HAS NOT BEEN
             REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
             MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT
             WHILE A REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT
             TO AN EXEMPTION THEREFROM UNDER SUCH ACT. THE CALL WARRANT
             REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN COMPLIANCE
             WITH THE CONDITIONS SPECIFIED HEREIN OR IN THE SERIES
             SUPPLEMENT.

             EACH PURCHASER OF THIS CALL WARRANT IS HEREBY NOTIFIED THAT
             THE SELLER OF THIS CALL WARRANT MAY BE RELYING ON THE
             EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
             ACT PROVIDED BY RULE 144A THEREUNDER."

     5. The Purchaser understands that no subsequent transfer of the Call
Warrants is permitted unless (A) such transfer is of a Call Warrant with the
applicable minimum denomination and (B) the Purchaser causes the proposed
transferee to provide to the Depositor and the Trustee such documentation as
may be required pursuant to Section 4.2 of the Warrant Agent Agreement,
including, if required, a letter substantially in the form hereof, or such
other written statement as the Depositor shall reasonably prescribe.

     6. The Purchaser is a person or entity (a "Person") who is either

          A. (1) a citizen or resident of the United States, (2) a
     corporation, partnership or other entity organized in or under the laws
     of the United States or any political subdivision thereof, or (3) an
     estate the income of which is includible in gross income for federal
     income tax purposes regardless of source, or (4) a trust if a court
     within the United States is able to exercise primary supervision of the
     administration of the trust and one or more United States persons have
     the authority to control all substantial decisions of the trust, or

          B. a Person not described in (A), whose ownership of such Call
     Warrant is effectively connected with such Person's conduct of a trade or
     business within the United

                                      A-2
<PAGE>

     States within the meaning of the Internal Revenue Code of 1986, as
     amended (the "Code"), and its ownership of any interest in such Call
     Warrant will not result in any withholding obligation with respect to any
     payments with respect to the Call Warrants by any Person (other than
     withholding, if any, under Section 1446 of the Code), or

          C. a Person not described in (A) or (B) above, who is not a Person:
     (1) that owns, directly or indirectly, 10% or more of the total combined
     voting power of all classes of stock in the Underlying Securities Issuer
     (as defined in the Prospectus Supplement) entitled to vote, (2) that is a
     controlled foreign corporation related to the Underlying Securities
     Issuer within the meaning of Section 864(d)(4) of the Code, or (3) that
     is a bank extending credit pursuant to a loan agreement entered into in
     the ordinary course of its trade or business.

     7. The Purchaser agrees that (I) if it is a Person described in clause
(A) above, it will furnish to the Depositor and the Trustee a properly
executed IRS Form W-9, and (II) if it is a Person described in clause (B)
above, it will furnish to the Depositor and the Trustee a properly executed
IRS Form W-8ECI, and (III) if it is a Person described in clause (C) above, it
will furnish to the Depositor and the Trustee a properly executed IRS Form
W-8BEN (or, if the Purchaser is treated as a partnership for federal income
tax purposes, a properly executed IRS Form W-8IMY with appropriate
certification for all partners or members attached). The Purchaser also agrees
that it will provide a new IRS form upon the expiration or obsolescence of any
previously delivered form, and that it will provide such other certifications,
representations or Opinions of Counsel as may be requested by the Depositor
and the Trustee.

     8. The Purchaser agrees that if at some time in the future it wishes to
transfer or exchange any of the Call Warrants, it will not transfer or
exchange any of the Call Warrants unless such transfer or exchange is in
accordance with the terms of the Warrant Agent Agreement, Series Supplement
and other documents applicable to the Call Warrant. The Purchaser understands
that any purported transfer of the Call Warrants (or any interest therein) in
contravention of any of the restrictions and conditions in the agreements, as
applicable, shall be void, and the purported transferee in such transfer shall
not be recognized by any Person as a holder of such Call Warrants, for any
purpose.

                                     A-3
<PAGE>

          You and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                  Very truly yours,

                                       [Name of Purchaser]

                                       By:  _________________________________
                                       Name:  _______________________________
                                       Title:  ______________________________

                                     A-4
<PAGE>

                                   EXHIBIT C

                           FORM OF INVESTMENT LETTER
             QUALIFIED INSTITUTIONAL BUYER AND ACCREDITED INVESTOR

                                         Dated:

U.S. Bank Trust National Association,
  as Trustee
100 Wall Street
New York, New York 10005

Lehman Brothers Inc.,
  as Initial Purchaser
745 Seventh Avenue
New York, New York 10019

Lehman ABS Corporation,
  as Depositor
745 Seventh Avenue
New York, New York 10019

Ladies and Gentlemen:

     In connection with our proposed purchase of $___________ aggregate
notional amount of Class A-2 Certificates (the "Class A-2 Certificates")
representing an interest in the Corporate Backed Trust Certificates, AT&T
Note-Backed Series 2003-18 Trust (the "Trust"), the undersigned, by executing
this letter (the "Purchaser") confirms that:

     1. Reference is made to the private placement memorandum, dated
[_______], 2003, including the schedules, exhibits and annexes, if any,
thereto, as supplemented or amended to the date hereof (the "Memorandum"),
relating to the Class A-2 Certificates. Capitalized terms used herein that are
not otherwise defined shall have the meanings ascribed thereto in the
Memorandum. The Purchaser has received a copy of the Memorandum and such other
information as the Purchaser deems necessary in order to make its investment
decision and the Purchaser has been provided the opportunity to ask questions
of, and receive answers from, the Depositor and the Initial Purchaser,
concerning the terms and conditions of the offering described in the
Memorandum. The Purchaser has received and understands the information
discussed above and understands that substantial risks are involved in an
investment in the Class A-2 Certificates. The Purchaser represents that, in
making its investment decision to acquire the Class A-2 Certificates, the
Purchaser has not relied on representations, warranties, opinions,
projections, financial or other information or analysis, if any, supplied to
it by any person or entity, including the Initial Purchaser, the Depositor or
the Trustee or any of their affiliates, except as expressly contained in the
Memorandum and in the other written information, if any, discussed above. The
Purchaser acknowledges that it has read and agreed to the matters stated on
pages 2 through 4 of such Memorandum and the information under the heading
"Transfer Restrictions." The Purchaser is purchasing the Class A-2
Certificates for investment purposes

                                      C-1
<PAGE>

and not with a view to, or for, the offer or sale in connection with a public
distribution or in any other manner that would violate the Securities Act or
the securities or blue sky laws of any state of the United States. The
Purchaser has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of purchasing any of the
Class A-2 Certificates. The Purchaser is aware that it may be required to bear
the substantial economic risk of an investment in the Class A-2 Certificates
for an indefinite period of time and such Purchaser is able to bear such risk
for an indefinite period. The Purchaser has relied upon its own tax, legal and
financial advisors in connection with its decision to purchase the Class A-2
Certificates.

     2. The Purchaser is not an "affiliate" (as defined in Rule 144 under the
Securities Act) of the Depositor and is either:

          (i) (A) a "Qualified Institutional Buyer" (a "QIB") (as defined in
Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"
and "Rule 144A")) and has delivered to you the certification contained herein
as to the fact that it is a QIB and (B) acquiring the Class A-2 Certificates
for its own account, for the account of an Accredited Investor (as defined in
Rule 501(a) under the Securities Act), or for the account of a QIB as to each
of which the Purchaser exercises sole investment discretion. The Purchaser is
aware that the Class A-2 Certificates are being sold to it in reliance on the
exemption from the provisions of Section 5 of the Securities Act provided by
Rule 144A; or

          (ii) an Accredited Investor and, if the Class A-2 Certificates are
to be purchased for one or more accounts ("investor accounts") for which it is
acting as fiduciary or agent, each such investor account is an Accredited
Investor on a like basis or a QIB; in the normal course of its business, such
Purchaser invests in or purchases securities similar to the Class A-2
Certificates.

     3. The Purchaser acknowledges that neither the Depositor nor the Initial
Purchaser, or any person representing the Depositor or the Initial Purchaser,
has made any representation to such purchaser with respect to the Trust, the
Underlying Securities or the offering or sale of any Class A-2 Certificates,
other than the information contained in the Memorandum, which has been
delivered to the Purchaser and upon which the Purchaser is relying in making
an investment decision with respect to the Class A-2 Certificates.
Accordingly, the Purchaser acknowledges that no representation or warranty is
made by the Depositor or the Initial Purchaser as to the accuracy or
completeness of such materials.

     4. The Purchaser understands that the Class A-2 Certificates are being
offered in a transaction not involving any public offering in the United
States within the meaning of the Securities Act, that the Class A-2
Certificates have not been and will not be registered under the Securities Act
or under the securities or blue sky laws of any state, and that (i) if in the
future it decides to offer, resell, pledge or otherwise transfer the Class A-2
Certificates, such Class A-2 Certificates shall only be offered, resold,
assigned or otherwise transferred (A) to the Trust, (B) pursuant to an
effective registration statement under the Securities Act, (C) to a QIB, in
accordance with Rule 144A or (D) to any person or entity (including an
Accredited Investor within the meaning of Rule 501(a) under the Securities
Act) pursuant to another available exemption from registration provided under
the Securities Act, and, in each of cases (A) through

                                      C-2
<PAGE>

(D), in accordance with any applicable securities laws of any state of the
United States and other jurisdictions and (ii) the purchaser will, and each
subsequent holder is required to, notify any subsequent purchaser of such
Class A-2 Certificates from it of the resale restrictions referred to in
clause (i) above. Upon the transfer of Class A-2 Certificates held in the form
of global certificates to an Accredited Investor, the transferor's interest in
such global certificates shall be exchanged for a Class A-2 Certificate in
definitive form. Thereafter, upon transfer of a definitive Class A-2
Certificate to a QIB, such Class A-2 Certificate may be exchanged for a
beneficial interest in a global certificate.

     5. The Purchaser understands that each Class A-2 Certificate will, unless
otherwise agreed to by the Depositor and the Trustee, bear a legend
substantially to the following effect:

          "THIS CLASS A-2 CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
          BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A
          REGISTRATION UNDER SUCH ACT IS IN EFFECT OR PURSUANT TO AN EXEMPTION
          THEREFROM UNDER SUCH ACT. THE CLASS A-2 CERTIFICATE REPRESENTED
          HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THE
          SERIES SUPPLEMENT.

          EACH PURCHASER OF THIS CLASS A-2 CERTIFICATE IS HEREBY NOTIFIED THAT
          THE SELLER OF THIS CLASS A-2 CERTIFICATE MAY BE RELYING ON THE
          EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
          PROVIDED BY RULE 144A THEREUNDER."

     6. The Purchaser understands that no subsequent transfer of the Class A-2
Certificates is permitted unless (A) such transfer is of a Class A-2
Certificate with a denomination of at least $100,000 and (B) it causes its
proposed transferee to provide to the Trustee and the Initial Purchaser a
letter substantially in the form of Exhibit C to the Series Supplement and
otherwise satisfactory to the Trustee and Initial Purchaser, as applicable, or
such other written statement as the Depositor shall prescribe.

     7. The Purchaser agrees that, if at some time in the future it wishes to
transfer or exchange any of the Class A-2 Certificates, it will not transfer
or exchange any of the Class A-2 Certificates unless such transfer or exchange
is in accordance with Section 5.04 of the Trust Agreement. The Purchaser
understands that any purported transfer of the Class A-2 Certificates (or any
interest therein) in contravention of any of the restrictions and conditions
in the Trust Agreement, as applicable, shall be void, and the purported
transferee in such transfer shall not be recognized by the Trust or any other
Person as a Certificateholder, as the case may be, for any purpose.

                                      C-3
<PAGE>

     8. The purchaser (i) acknowledges that the Depositor, the Initial
Purchaser, the Trustee and others will rely upon the truth and accuracy of the
foregoing acknowledgments, representations and agreements and agrees that the
Depositor, the Initial Purchaser, the Trustee are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any
administrative or legal proceeding or official inquiry with respect to the
matters covered hereby, and (ii) agrees that, if any of the acknowledgments,
representations, warranties and agreements made or deemed to have been made by
such purchaser's purchase of the Class A-2 Certificates are no longer
accurate, such purchaser shall promptly notify the Depositor and the Initial
Purchaser. If the purchaser is acquiring any Class A-2 Certificates as a
fiduciary or agent for one or more investor accounts, it represents that it
has sole investment discretion with respect to each such account and it has
full power to make the foregoing acknowledgments, representations and
agreements on behalf of each such account and that each such investor account
is eligible to purchase the Class A-2 Certificates.

                                    Very truly yours,

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

                                     C-4

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