EXHIBIT 10.4 MASTER AGREEMENT

<PAGE>


                                                                    Exhibit 10.4

(Multicurrency--Cross Border)

ISDA(R)
International Swap Dealers Association. Inc.
MASTER AGREEMENT

                          dated as of  November 29, 2006
                                       -----------------


BANK OF AMERICA, N.A.                    and     WELLS FARGO BANK, N.A., AS
                                                SUPPLEMENTAL INTEREST TRUST
                                               TRUSTEE, ON BEHALF OF BANC OF
                                                  AMERICA FUNDING 2006-8T2
                                                SUPPLEMENTAL INTEREST TRUST


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

Accordingly, the parties agree as follows:--

1.  Interpretation

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

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

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

2.  Obligations

(a) General Conditions.

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

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

    (iii) Each obligation of each party under Section 2(a)(i)  is subject to (1)
    the  condition  precedent  that no  Event of Default or  Potential  Event of

    Default with respect to the other party has  occurred and is continuing, (2)
    the condition  precedent that no Early  Termination  Date  in respect of the
    relevant  Transaction has occurred  or been  effectively  designated and (3)
    each other applicable condition precedent specified in this Agreement.


        Copyright (C)1992 by International Swap Dealers Association, Inc.

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

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

    (i) in the same currency; and

    (ii) in respect of the same Transaction,

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

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

(d) Deduction or Withholding for Tax.

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

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

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

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

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

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

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

                                       2

<PAGE>

    (ii) Liability. If:--

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

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

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

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

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

3.  Representations

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

(a) Basic Representations.

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

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

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

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

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


                                       3

<PAGE>


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

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

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

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

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

4.  Agreements

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

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

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

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

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

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

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

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

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

(e) Payment  of Stamp Tax.  Subject  to  Section  11, it  will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or  performance of this
Agreement by a jurisdiction in which it is incorporated,


                                       4

<PAGE>


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


5.  Events of Default and Termination Events

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

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

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

    (iii) Credit Support Default.

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

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

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

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

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

    (vi) Cross  Default.  If  "Cross  Default" is  specified  in the Schedule as
    applying to the party, the occurrence  or existence of (1) a default,  event
    of default or other similar condition or event (however

                                       5

<PAGE>


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

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

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

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

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

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

(b) Termination  Events.  The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event  specified  below  constitutes  an  Illegality if the
event is specified  in (i) below,  a Tax Event if the event is specified in (ii)
below or a Tax Event upon Merger if the event is specified in (iii) below,  and,
if specified to be applicable, a Credit Event


                                       6

<PAGE>


Upon Merger if the event is  specified  pursuant to (iv) below or an  Additional
Termination Event if the event is specified pursuant to (v) below:--

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

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

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

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

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

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

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

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

                                       7


<PAGE>



6.  Early Termination

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

(b) Right to Terminate Following Termination Event.

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

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

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

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

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

    (iv) Right to Terminate. If:--

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

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

    either party in the case of an  Illegality,  the Burdened  Party in the case
    of a Tax Event Upon Merger,  any Affected  Party in the  case of a Tax Event
    or an  Additional  Termination  Event if there  is  more  than one  Affected
    Party, or the party which is not the Affected  Party in the case of a Credit
    Event Upon Merger or an Additional  Termination  Event  if there is only one
    Affected  Party may, by not more than 20 days notice to  the other party and
    provided that the relevant Termination Event is then


                                       8

<PAGE>


    continuing,  designate  a day  not  earlier  than  the day  such  notice  is
    effective  as  an  Early  Termination  Date   in  respect  of  all  Affected
    Transactions.

(c) Effect of Designation.

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

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

(d) Calculations.

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

    (ii)