Document:

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                                                                  EXHIBIT 10.18

                          POST-RESTRUCTURING AGREEMENT

         This POST-RESTRUCTURING AGREEMENT ("Agreement") is entered into this
8th day of June, 1999 by and among WCC Inc., a Nevada Corporation ("New
Servicer"), Capital Consultants, Inc., an Oregon corporation, for itself and as
agent for any investors it represents ("CCI") or its successors or assigns,
Wilshire Financial Services Group Inc., a Delaware corporation ("WFSG"), and
Wilshire Credit Corporation, a Nevada corporation, which shall change its name
to Capital Wilshire Holdings, Inc. ("CWH").

                                    RECITALS

A. WFSG, CWH, Wilshire Servicing Corporation ("WSC"), Portland Servicing
Corporation ("PSC"), Andrew Wiederhorn, Lawrence Mendelsohn and CCI have entered
into that certain Amended and Restated Restructuring Agreement dated January 19,
1999 (the "Restructuring Agreement").

B. The Restructuring Agreement contemplates the restructuring of WFSG, CWH and
WSC and the creation of New Servicer, which will be the sole provider of real
estate and loan management services for WFSG and its subsidiaries.

C. Pursuant to Section 8(C) of the Restructuring Agreement, CCI formed a
corporation which in turn formed a wholly-owned corporate subsidiary ("CWH
Mergeco Sub Corp."). CWH will merge with CWH Mergeco Sub Corp. CWH shall be the
surviving corporation and upon termination of that certain Transition Servicing
Agreement among New Servicer dated even herewith (the "Transition Servicing
Agreement") shall change its name from Wilshire Credit Corporation to Capital
Wilshire Holdings, Inc.

D. Pursuant to the Restructuring Agreement, CWH will assign to New Servicer all
of its right, title and interests in all of its assets (including, without
limitation, the right to the name Wilshire Credit Corporation and all rights to
and under all insurance policies) in exchange for the Class B Common Stock of
the New Servicer ("Class B Stock") and the assumption by New Servicer of all of
the liabilities of CWH (other than obligations under the WCC Loan Agreement and
Claims (as each term is defined in the Restructuring Agreement) against CWH or
PSC).

E. Pursuant to the Restructuring Agreement, WFSG will contribute all of the
outstanding common stock of WSC to New Servicer for all of the outstanding Class
A common stock of New Servicer ("Class A Stock").

F. New Servicer will receive material benefits, both direct and indirect, from
the consummation of the transactions contemplated by the Restructuring
Agreement.

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G. The parties hereto desire to document the respective obligations of each
party upon the consummation of the Restructuring.

                                    AGREEMENT

         For good and valuable consideration, the parties hereto agree as
follows:

1. DEFINITIONS. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Restructuring Agreement.

2. INDEBTEDNESS. New Servicer agrees solely for the benefit of the holder of the
New Servicer Class B Common Stock that neither it nor any subsidiary performing
loan servicing shall incur debt for borrowed money other than debt incurred for
working capital to finance the operations of New Servicer or such subsidiary as
a loan servicer (including, without limitation, the financing of advances made
by New Servicer or such subsidiary, as servicer, with respect to loans, REO
properties and servicing expenses in the ordinary course of business) and to
finance the acquisition of servicing rights; provided that such operations and
acquisitions shall be on a good faith, arms-length basis, at fair market value
in connection with the business of New Servicer or such subsidiary as a
servicing company.

3. SERVICING. New Servicer and its subsidiaries shall be the sole servicer for
WFSG and its subsidiaries for servicing performed in the United States and any
such servicing agreements which are held or acquired by WFSG or any such
subsidiary other than New Servicer shall be transferred to New Servicer (unless,
in relation to those servicing agreements for which Wilshire Servicing
Corporation ("WSC") is master servicer, the consent of a third party would be
required for such transfer, in which case such agreements will be subserviced to
New Servicer); provided, however, if the Office of Thrift Supervision (or other
similar governing body) requires or recommends (and officers of the bank
determines that it is prudent to follow such recommendation) that the servicing
for First Bank of Beverly Hills, FSB and its subsidiaries (the "Bank") be
effected by a third party, this provision shall not apply to the servicing for
the Bank; provided, that, in such event, for purposes of the calculation
contemplated with respect to the exchange rights of the Class B Common Stock of
New Servicer contained in that certain Exchange Rights Agreement between WFSG
and CCI of this same date ("Exchange Agreement"), the parties shall impute to
the total earnings of New Servicer an amount equal to the earnings which would
have been earned had New Servicer continued to be the servicer for the Bank
during the applicable calculation period. New Servicer shall not transfer the
stock of WSC without the prior written consent of CWH, except that WSC and New
Servicer may merge without the consent of CWH.

4. WFSG DIVIDENDS. Dividends declared by WFSG during the twenty-four month
period in which New Servicer Class B Common Stock may not be exchanged for WFSG
common

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stock pursuant to the Exchange Agreement shall be shared pro rata (determined at
the time of declaration as though the New Servicer Class B Common Stock had been
converted to WFSG common stock pursuant to the Exchange Agreement) pursuant to
the Exchange Agreement with the holder of the New Servicer Class B Common Stock;
provided, that such dividends (including stock rights or similar rights) may be
held in escrow pending the conversion of the New Servicer Class B Common Stock
into WFSG common stock; provided, however, that such dividends shall not be so
shared with the holder of the New Servicer Class B Common Stock to the extent
such dividends represent a pass-through of dividends declared and distributed by
New Servicer and shared with the holder of the New Servicer Class B Common Stock
pursuant to Article III, Section 1 of New Servicer's Amended and Restated
Articles of Incorporation.

5. NOTICE OF LIQUIDATION. In the event WFSG determines that it is necessary or
prudent to liquidate its assets, WFSG shall use its best efforts (subject to the
fiduciary and other legal obligations imposed upon its board of directors,
including obligations concerning confidentiality and restrictions under
applicable securities law) to:

              A.  Provide commercially reasonable prior notice (taking into
                  account the specific facts and circumstances) to CCI or CCI's
                  assignee if such assignee is Sterling Capital, LLC (together,
                  "CCI/Sterling") of any such action undertaken by WFSG;

              A.  Provide CCI/Sterling with the same information as is provided
                  the board of directors concerning the proposed liquidation and
                  to provide representatives of CCI/Sterling the opportunity to
                  attend meetings of the board of directors relating to the
                  proposed liquidation;

              A.  Provide CCI/Sterling a commercially reasonable time (taking
                  into account the specific facts and circumstances) in which
                  CCI/Sterling may offer to purchase the assets of WFSG and
                  obtain financing therefor or entertain offers from other
                  potential buyers.

6. INFORMATION TO SHAREHOLDERS. So long as the New Servicer Class B Common Stock
is pledged to or owned by CCI/Sterling, WFSG shall provide to CCI/Sterling
promptly upon the filing or sending thereof, a copy of any annual, periodic or
special report or registration statement (inclusive of exhibits thereto) filed
by WFSG with the SEC or any securities exchange and of each communication from
WFSG to shareholders generally. In addition, WFSG shall provide, on or before
April 30 of each year, a certificate of its chief financial officer that the
expenses of New Servicer for the immediately preceding fiscal year have been
allocated on a commercially reasonable basis in accordance with GAAP between New
Servicer and WFSG. In addition, WFSG shall use its best efforts (subject to the
fiduciary obligations imposed upon its board of directors, including obligations
concerning confidentiality and

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restrictions under applicable securities law) to promptly notify CCI/Sterling
of any offers for the sale of WFSG which are under serious consideration,
including the price and material terms. Further, New Servicer shall provide
to CCI/Sterling, upon the written request of CCI/Sterling, New Servicer's
quarterly income statement and balance sheet prepared in conjunction with the
preparation of financial statements by WFSG (it being acknowledged by all
parties that such income statement and balance sheet may not be prepared in
accordance with GAAP).

7.       POST-CLOSING CONTRIBUTIONS.

         A.       Section 1 of Article III of New Servicer's Amended and
                  Restated Articles of Incorporation (the "Articles") provides
                  as follows:

                  If at any time after the date hereof the holders of shares of
                  either the Class A Stock or the Class B Stock makes a capital
                  contribution to New Servicer that is not matched by the
                  holders of the Class A Stock or the Class B Stock, as the case
                  may be, pro rata according to their respective dividend rights
                  set forth in Section 1 of Article III of the Articles (a
                  "Post-Closing Contribution"), New Servicer may declare and
                  distribute a special dividend solely to the shareholders
                  making the Post-Closing Contribution as follows: (i) if the
                  Post-Closing Contribution consists of cash, an amount equal to
                  such contribution or (ii) if the Post-Closing Contribution
                  consists of an asset, the asset so contributed (or the
                  proceeds thereof); PROVIDED that no additional contribution by
                  the holders of Class B Stock made in connection with that
                  certain Transition Servicing Agreement shall be deemed a
                  Post-Closing Contribution.

         B.       If either WFSG or CCI elects to make a Post-Closing
                  Contribution (as defined in and contemplated by Section 1 of
                  Article III of New Servicer's Amended and Restated Articles of
                  Incorporation), such party shall use reasonable efforts to
                  provide notice to the other party of such contribution,
                  including the nature and value of such contribution.

         C.       If New Servicer elects to make a distribution of the
                  Post-Closing Contribution to the shareholder having made such
                  contribution, it shall give the shareholder not making such
                  contribution notice within 30 days after such distribution.

         D.       In the case of a distribution relating to a Post-Closing
                  Contribution consisting of an asset, if the shareholder
                  receiving the notice referred to in Section 7(B) reasonably
                  believes that the value of such distribution exceeds the value
                  of the

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                  Post-Closing Contribution to which the distribution relates,
                  such shareholder shall have the right to demand an independent
                  appraisal of the value of such distribution and the
                  Post-Closing Contribution to which the distribution relates.
                  If the appraised value of the Post-Closing Contribution is
                  less than 90 percent of the value of the distribution, the
                  shareholder receiving the distribution shall be responsible
                  for the costs of the appraisal. If the appraised value of the
                  Post-Closing Contribution is 90 percent or more of the value
                  of the distribution, the shareholder demanding the appraisal
                  shall be responsible for the costs of the appraisal.

8. VOTING AGREEMENT. In the event that CWH elects to convert its shares of Class
B Stock into Class A Stock, as a condition precedent to such conversion CWH and
New Servicer shall enter into a voting agreement substantially in the form
attached as EXHIBIT A.

9.       INTERPRETATION.

                  (a) AMBIGUITIES. The parties acknowledge that each party and
         its counsel has materially participated in the drafting of this
         Agreement; consequently, the rule of contract interpretation, that
         ambiguities, if any, in a writing be construed against the drafter,
         shall not apply.

                  (b) HEADINGS. The section headings in this Agreement are
         included for convenience only; they do not give full notice of the
         terms of any portion of this Agreement and are not relevant to the
         interpretation of any provision of this Agreement.

                  (c) GOVERNING LAW. The parties intend that this Agreement
         shall be governed by and construed in accordance with the laws of the
         state of Oregon applicable to contracts made and wholly performed
         within Oregon by persons domiciled in Oregon, without regard to choice
         of law rules.

                  (d) SEVERABILITY. Any provision of this Agreement that is
         deemed invalid or unenforceable shall be ineffective to the extent of
         such invalidity or unenforceability, without rendering invalid or
         unenforceable the remaining provisions of this Agreement. Furthermore,
         in lieu of each such invalid or unenforceable provision, there shall be
         added automatically as a part of this Agreement, a provision as similar
         in terms to such invalid or unenforceable provision as may be possible
         and be valid and enforceable.

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10. ACCOUNTS. As of January 19, 1999, CCI, in addition to that certain account
in the name of Wilshire Credit Corporation existing at Bear Stearns (Account No.
277-04722-1-1), was entitled to all funds contained in that certain account in
the name of Wilshire Credit Corporation existing at First American Title Company
(Money Market Account No. 98-160944A) and in that certain account in the name of
Portland Servicing Corporation existing at Bear Stearns (Account No.
277-05050-1-0), and Wilshire Credit Corporation and Portland Servicing
Corporation each released their respective interests in such accounts as of
January 19, 1999.

11. DISSOLUTION OF CWH. CWH shall not dissolve within two years of the date of
this Agreement.

12. TERMINATION. The respective rights and obligations of the parties contained
in this Agreement shall terminate upon the exchange of the New Servicer Class B
Common Stock for WFSG Common Stock pursuant to the Exchange Agreement or the
liquidation of New Servicer. The respective rights and obligations of the
parties contained in Sections 2, 3, 5 and 6 shall terminate upon the earlier of
the conversion of the New Servicer Class B Common Stock into shares of New
Servicer Class A Common Stock.

12. INTEGRATION; AMENDMENT. This Agreement constitutes the entire agreement of
the parties relating to the subject matter hereof. There are no promises, terms,
conditions, obligations, or warranties other than those contained in such
document and such document supersedes all prior communications, representations,
or agreements, verbal or written, among the parties relating to the subject
matter hereof. This Agreement may not be amended except in writing executed by
all of the parties hereto.

13. WAIVER. No provision of this Agreement shall be deemed to have been waived
unless such waiver is in writing signed by the waiving party. No failure by any
party to insist upon the strict performance of any provision of this Agreement
or to exercise any right or remedy consequent upon a breach thereof, shall
constitute a waiver of any such breach, of such provision or of any other
provision. No waiver of any provision of this Agreement shall be deemed a waiver
of any other provision of this Agreement or a waiver of such provision with
respect to any subsequent breach, unless expressly provided in writing.

14. NOTICE. All notices required or permitted to be given under this Agreement
shall be in writing. Notices may be served by certified or registered mail,
postage paid with return receipt requested; by private courier, prepaid; by
telex, facsimile, or other telecommunication device capable of transmitting or
creating a written record; or personally. Mailed notices shall be deemed
delivered five days after mailing, properly addressed. Couriered notices shall
be deemed delivered when delivered as addressed, or if the addressee refuses
delivery, when presented for delivery notwithstanding such refusal. Telex or
telecommunicated notices shall be deemed delivered when receipt is either
confirmed by confirming transmission equipment

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or acknowledged by the addressee or its office. Personal delivery shall be
effective when accomplished. Unless a party changes its address by giving notice
to the other party as provided herein, notices shall be delivered to the parties
at the following addresses:

If to WFSG:                1776 S.W. Madison
                           Portland, OR 97207-8517
                           Attn:    Andrew A. Wiederhorn
                                    Lawrence A. Mendelsohn
                           Facsimile No. (503) 223-8799

                  With copies to:   Stoel Rives LLP
                           900 SW Fifth Avenue
                           Portland, Oregon  97204
                           Attn:  Gary R. Barnum
                           Facsimile No. (503) 220-2480

If to New Servicer:        1705 SW Taylor Street
                           Portland, OR 97207
                           Attn:  Phillip Vincent
                           Facsimile No. (503) 952-7476

                  With copies to:   Stoel Rives LLP
                           900 SW Fifth Avenue
                           Portland, Oregon  97204
                           Attn:  Gary R. Barnum
                           Facsimile No. (503) 220-2480

If to CCI or CWH:          Capital Consultants, Inc.
                           2300 S.W. First Ave.
                           Portland, Oregon 97201
                           Attn:    Linda Lucas
                           Facsimile No. (503) 224-4355

                  With copies to:   Lane Powell Spears Lubersky LLP
                           520 S.W. Yamhill Street, Suite 800
                           Portland, Oregon 97204
                           Attn: Robert E. Maloney, Jr.
                           Facsimile No. (503) 224-0388

15. DISPUTE RESOLUTION. Other than claims for specific performance, injunctive
or other equitable relief, which shall be resolved by appropriate court action,
and claims arising from or related to a bankruptcy petition filed by or against
any person, which shall be resolved in

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bankruptcy court, any dispute between any of the parties to this Agreement,
whether or not arising out of this Agreement, will be resolved by binding
arbitration in Portland, Oregon, conducted in accordance with the provisions of
ORS 36.300 ET SEQ., including any amendments thereto. The arbitration shall take
place in Portland, Oregon, and the parties shall have full and complete rights
to all discovery provided in accordance with the Oregon Rules of Civil
Procedure, including but not limited to depositions, requests for production of
documents, requests for admissions, and as otherwise provided in said Rules of
Civil Procedure. The parties shall mutually agree to selection of the
arbitrator, and agree that disputes under five (5) million dollars shall be
decided by a single arbitrator. Any dispute in excess of that amount shall be
determined by three arbitrators. In the event the parties are unable to agree,
such arbitrator or arbitrators shall be selected by the presiding circuit court
judge for Multnomah County, District No. 4. Any requests or pendency of the
arbitration shall not be a bar or in any way a defense to either party seeking
appropriate specific performance or equitable relief from any court of competent
jurisdiction or from a bankruptcy court consistent with the terms of this
Agreement. The award of arbitration shall be final and judgment shall be entered
upon it in accordance with applicable law in any court having jurisdiction
thereof.

16. ATTORNEY FEES. If any suit or action arising out of or related to this
Agreement is brought by any party hereto, the prevailing party or parties shall
be entitled to recover the costs and fees (including without limitation
reasonable attorney fees, the fees and costs of experts and consultants,
copying, courier and telecommunication costs, and deposition costs and all other
costs of discovery) incurred by such party or parties in such suit or action,
including without limitation at arbitration, trial, any post-trial or appellate
proceeding, or in any bankruptcy proceeding.

17. SURVIVAL; ASSIGNMENT; BINDING EFFECT. The representations, warranties and
covenants contained in this Agreement shall survive the closing of the
transactions contemplated herein. This Agreement shall bind and inure to the
benefit of, and be enforceable by, the parties hereto and their respective
successors, heirs, and assigns.

18. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
all of which taken together shall constitute one agreement binding on all the
parties, notwithstanding that all parties are not signatories to the same
counterpart.

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         IN WITNESS WHEREOF, the parties hereto execute this Services Agreement
as of the date first written above.

                                         WCC INC.,
                                         a Nevada corporation

                                         By:____________________________________
                                         Name:  Phillip Vincent
                                         Title:    President

                                         WILSHIRE FINANCIAL SERVICES GROUP INC.,
                                         a Delaware corporation

                                         By:____________________________________
                                         Name:
                                         Title:

                                         WILSHIRE CREDIT CORPORATION,
                                         a Nevada corporation

                                         By:____________________________________
                                         Name:  Jeffrey L. Grayson
                                         Title:    President

                                         CAPITAL CONSULTANTS, INC.,
                                         an Oregon corporation, for itself and
                                         as agent for its Investors

                                         By:____________________________________
                                         Name:  Jeffrey L. Grayson
                                         Title:    President

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                                                                      EXHIBIT A

                                VOTING AGREEMENT

         This VOTING AGREEMENT (the "Agreement") dated as of _________, 1999, is
among WCC Inc., a Nevada corporation (the "Company") and ________ as holders of
Class B Common Stock of the Company (the "Holders").

        RECITALS

         A. WHEREAS, the Holders propose to convert their shares of the
Company's Class B Common Stock (the "Class B Stock") for shares of the Company's
Class A Common Stock (the "Class A Stock") pursuant to the Company's Amended and
Restated Articles of Incorporation (the "Converted Stock"); and

         B. WHEREAS, the parties hereto desire to provide for the Holders to
vote their shares of Converted Stock in a certain manner with respect to all
business of the Company.

         AGREEMENT

                  NOW, THEREFORE, in reliance on the foregoing Recitals and in
consideration of the mutual covenants contained herein, the parties agree as
follows:

         1. No Transfer of Voting Stock in Violation of this Agreement. Until
this Agreement is terminated, as provided herein, no party to this Agreement
will transfer any voting stock in the Company to any person not a party to this
Agreement immediately prior to such transfer, unless such transferee, as a
condition of such transfer, becomes a party to this Agreement by executing a
signature page hereto and by delivering a copy thereof to the Company. Each
certificate representing voting stock of the Company issued in the name of a
party to this Agreement shall contain substantially the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A VOTING AGREEMENT
AMONG CERTAIN STOCKHOLDERS, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE
PRINCIPAL OFFICE OF THE COMPANY OR MAY BE OBTAINED UPON WRITTEN REQUEST TO THE
SECRETARY OF THE COMPANY.

         The Company shall not permit the transfer of any such shares of voting
stock on its books or issue a new certificate upon transfer of any such voting
stock unless the person to whom such voting stock is to be transferred shall
have become a party to this Agreement.

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         2. Voting of Shares. Each Holder of Class B Stock executing this
Agreement, upon conversion of such Class B Stock pursuant to its terms into
Class A Stock shall, in voting on any matter, vote all shares of voting stock of
the Company as to which such party has voting discretion, consistent with the
voting on a pro rata basis of the Class A Stock outstanding prior to the
conversion of any shares of Class B Stock.

         3. Grant of Proxy. Should the provisions of this Agreement be construed
to constitute the granting of proxies, such proxies shall be deemed coupled with
an interest and are irrevocable for the term of this Agreement.

         4. Manner of Voting. The voting of shares pursuant to this Agreement
may be effected in person, by proxy, by written consent or in any other manner
permitted by applicable law.

         5. Term and Termination. This Agreement shall become effective upon the
conversion of the Class B Stock into Class A Stock and shall continue in full
force and effect through the earliest of the following dates, on which it shall
terminate in its entirety:

                  5.1 The consummation of the Company's sale of its common stock
in a bona fide, firm commitment, underwritten public offering pursuant to an
effective registration statement on Form S-1 (or its successor form) under the
Securities Act of 1933, as amended.

                  5.2 A merger or consolidation of the Company into or with
another corporation after which the shareholders of the Company immediately
before such transaction shall own less than 50% of the voting equity securities
of the surviving corporation or its parent; or

                  5.3 The sale, lease, transfer, or other disposition of all or
substantially all of the Company's assets.

         6.       Miscellaneous.

                  6.1 Specific Performance. The parties hereto hereby declare
that it is impossible to measure in money the damages which will accrue to a
party hereto or to their heirs, personal representatives or assigns by reason of
a failure to perform any of the obligations under this Agreement and agree that
the terms of this Agreement shall be specifically enforceable, and appropriate
injunctive relief may be applied for and granted in connection therewith. In any
action or proceeding to specifically enforce the provisions hereof, any person
against whom such action or proceeding is brought hereby waives the claim of
defense therein that such party has an adequate remedy at law, and such person
shall not offer in any such action or proceeding the claim or defense that such
remedy at law exists. Such equitable remedies shall, however, be cumulative and
not exclusive and shall be in

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<PAGE>

addition to any other remedies that any party may have under this Agreement or
otherwise.

                  6.2 Other Voting Agreements. The Holders represent and agree
that they are not and will not become parties to any voting trust, agreement for
voting control, or other like agreement involving any of the voting equity
securities of the Company owned by them during the term of this Agreement, which
trust or agreement is in conflict with the terms of this Agreement.

                  6.3 Governing Law. This Agreement, and the rights of the
parties hereto, shall be governed by and construed in accordance with the laws
of the state of Oregon, exclusive of choice of law rules.

                  6.4 Amendment. Any term or provision of this Agreement may be
amended only by a writing signed by the Company, the parties and a majority of
the holders of Class A Stock.

                  6.5 Severability. If any provision of this Agreement is held
to be invalid or unenforceable, the validity and enforceability of the remaining
provisions of this Agreement shall not be affected thereby.

                  6.6 Counterparts. This Agreement may be executed in one or
more counterparts, each of which will be deemed an original but all of which
together shall constitute one and the same agreement.

                  6.7 Absence of Third-Party Beneficiary Rights. No provisions
of this Agreement are intended nor shall be interpreted to provide or create any
third-party beneficiary rights or any other rights of any kind in any client,
customer, affiliate, shareholder or partner of any party hereto, or any other
person, unless specifically provided otherwise herein and, except as so
provided, all provisions hereof shall be personal solely between the parties to
this Agreement.

                  6.8 Entire Agreement. This Agreement, the documents referenced
herein and the exhibits thereto constitute the entire understanding and
agreement of the parties hereto with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements or understandings,
inducements or conditions, express or implied, written or oral, between the
parties with respect to such subject matters.

         [SIGNATURE PAGE FOLLOWS]

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<PAGE>

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

THE COMPANY:            WCC INC.

                        By:______________________________
                        Name:
                        Title:

HOLDERS:                [HOLDER]

                        By:______________________________
                        Name:
                        Title:

                        [HOLDER]

                        By:______________________________
                        Name:
                        Title:

                                       4<PAGE>

                                                                   EXHIBIT 10.19

                               DIP LOAN AGREEMENT

         This DIP Loan Agreement ("Agreement") is entered into as of March 3,
1999, by and between WILSHIRE REAL ESTATE PARTNERSHIP L.P., a Delaware limited
partnership ("WREP") and WILSHIRE FINANCIAL SERVICES GROUP INC., a Delaware
corporation ("WFSG").

                                    RECITALS

         A. WREP and WAC entered into the WAC Interim Loan Agreement, whereby
WREP agreed to make the WAC Interim Loan pursuant to the terms thereof.

         B. Contemporaneous with the making of the WAC Interim Loan, WAC and
WFSG entered into the WFSG Interim Loan Agreement, whereby WAC agreed to use the
proceeds of the WAC Interim Loan to make the WFSG Interim Loan pursuant to the
terms thereof.

         C. WREP has agreed to make the DIP Loan to WFSG, for the purpose of
repaying the WFSG Interim Loan and for other purposes. The parties wish to set
forth the terms and conditions upon which the DIP Loan will be made and repaid.

         D. On March 3, 1999 (the "Petition Date"), WFSG filed a petition under
Chapter 11 of the Bankruptcy Code and currently is operating its business as
Chapter 11 Debtor-in-Possession ("DIP").

         E. WFSG currently is unable to obtain the funds it requires to operate
after the Petition Date other than by borrowing from WREP on the terms set forth
in this Agreement. WREP is unwilling to lend to WFSG, except on the terms of
this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and promises
of the parties contained herein, WREP and WFSG hereby agree as follows:

                             ARTICLE I. DEFINITIONS

A.       DEFINED TERMS

         "AFFILIATE" of any person shall mean any other person which, directly
or indirectly, controls or is controlled by or is under common control with such
person .

                                       1
<PAGE>

         "AGREEMENT" means this Loan Agreement as amended, modified or
supplemented from time to time.

         "BANKRUPTCY CODE" means the Bankruptcy Reform Act, Title 11 of the
United States Code, as amended or recodified from time to time, including
(unless the context otherwise requires) any rules or regulations promulgated
thereunder.

         "BOARD" shall mean the Board of Governors of the Federal Reserve System
of the United States.

         "BOARD REGULATION" shall mean any of Regulation D, T, U or X of the
Board, as the same is from time to time in effect, and all official rulings and
interpretations thereunder or thereof.

         "BUSINESS DAY" means any day other than a Saturday, Sunday or other
days on which commercial banks are authorized or required to be closed in
Portland, Oregon.

         "CLOSE" OR "CLOSING" means the funding of the DIP Loan.

         "CLOSING DATE" means the day which is one Business Day after the
satisfaction or waiver of all the conditions set forth in Section III.C hereof.

         "CAPITAL RESEARCH LOAN" means the loan from Capital Research and
Management Company to WREP evidenced by an Amended and Restated Promissory Note
dated as of November 12, 1998. The principal balance of the Capital Research
Loan as of the date of this Agreement is approximately $18,129,000.

         "COLLATERAL" means the WAC Stock and the First Bank Stock.

         "DEFAULT" means an Event of Default or an event or condition, which
with the giving of notice or the passage of time, or both, would constitute an
Event of Default.

         "DIP LOAN" means the loan of up to $10,000,000 by WREP to WFSG pursuant
to the terms of this Agreement.

         "EVENT OF DEFAULT" has the meaning set forth in Section VII.A hereof.

         "FIRST BANK" means the First Bank of Beverly Hills, FSB.

         "FIRST BANK STOCK" means all of the issued and outstanding capital
stock of First Bank.

         "FISCAL YEAR" shall mean the fiscal year of the WFSG for accounting
purposes which ends on December 31 of each year.

                                       2
<PAGE>

         "GAAP" means generally accepted accounting principles as in effect in
the United States from time to time, consistently applied.

         "GOVERNMENTAL AUTHORITY" means any domestic or foreign national, state
or local government, any political subdivision thereof, any department agency,
authority or bureau of any of the foregoing, or any other entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, including the Office of Thrift Supervision, the
Federal Deposit Insurance Corporation, the Federal Reserve Board, the
Comptroller of the Currency, any central bank or any comparable authority.

         "GOVERNMENT RULE" means any applicable law, rule, regulation,
ordinance, order, code interpretation, judgment, decree, directive, guidelines,
policy or similar form of decision of any Government Authority.

         "INDEBTEDNESS" shall mean, with respect to any person, (a) all
obligations of such person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such person evidenced by bonds,
debentures, notes or other similar instruments or upon which interest charges
are customarily paid, (c) all obligations of such person for the deferred
purchase price of property or services, except current accounts payable arising
in the ordinary course of business and not overdue beyond such periods as is
commercially reasonable for such person's business, (d) all obligations of such
person under conditional sale or other title retention agreements relating to
property purchased by such person and all capitalized lease obligations, (e) all
payment obligations of such person with respect to interest rate or current
protection agreements, (f) all obligations of such person as an account party
under any letter of credit or in respect of bankers' acceptances, (g) all
obligations of any third party secured by property or assets of such person
(regardless of whether or not such person is liable for repayment of such
obligations), and (h) all guarantees of such person.

         "IRWINDALE PROPERTY" shall mean that certain parcel of real property
described in EXHIBIT B attached hereto.

         "LETTER AGREEMENT" means that certain amended and restated agreement
dated as of January 19, 1999, by and among WREP, WFSG, WAC and WREIT.

         "LIEN" shall mean, with respect to any asset, (i) any mortgage, lien,
pledge encumbrance, charge or security interest in or on such asset, (ii) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such asset, (iii) in the
case of securities, any purchase option, call or similar right of a third party
with respect to such securities or (iv) any other right of or arrangement with
any creditor to have such creditor's claim satisfied out of such assets, or the
proceeds therefrom, prior to the general creditors of the owner thereof.

         "LOAN DOCUMENTS" means this Agreement, the Note, the Security
Agreement, and other agreements, documents and instruments now or at any time
hereafter executed and/or delivered

                                       3
<PAGE>

by the WFSG in connection with this Agreement, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

         "MARGIN STOCK" shall have the meaning assigned to such term in
Regulation U.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect occurring
after the Closing Date on (a) the condition, business, performance, prospects,
operations or properties of WFSG or WAC, (b) WFSG's ability to pay or perform
the Obligations, (c) the rights and remedies of or benefits available to WREP
under the Loan Documents, or (d) WREP's Lien on the Collateral.

         "NEW LENDER" shall have the meaning defined in Section VI.A.2 of this
Agreement.

         "NEW LOAN" is defined in Section VI.A.2 of this Agreement.

         "NEW LOAN DOCUMENTS" " means any agreements, documents and
instruments executed and/or delivered by WREP, WFSG and/or WAC (as the case
may be), in connection with the New Loan, as the same may be amended,
modified, supplemented, extended, renewed, restated or replaced.

         "NOTE" means a promissory note executed by WFSG in favor of WREP
evidencing the DIP Loan, substantially in the form attached as EXHIBIT A hereto.

         "NOTICE OF NEW LOAN" shall have the meaning defined in Section VI.A.2
of this Agreement.

         "OBLIGATIONS" means all of obligations of the WFSG to WREP, under the
Loan Documents, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereby arising.

         "PREPACKAGED PLAN" or "PLAN" means the prepackaged plan of
reorganization filed by WFSG on March 3, 1999,

         "SECURITY AGREEMENT" means the Security Agreement of even date from
WFSG to WREP with respect to the WAC Stock, substantially in the form of
EXHIBIT E attached hereto, and/or, where the context requires, a similar
security agreement from WAC to WREP with respect to the First Bank Stock.

         "SENIOR NOTES" means the corporate debenture issued by WFSG which pay
interest at the rate of 13% per annum with a maturity date of 2004, and the
Series B Notes issued by WFSG which pay interest at the rate of 13% per annum
with a maturity date of 2004.

         "SENIOR NOTEHOLDERS" means the holders of the Senior Notes.

         "VALENCIA PROPERTY" means that certain parcel of real property
described in EXHIBIT C attached hereto.

                                       4
<PAGE>

         "WAC" means Wilshire Acquisitions Corporation, a Nevada corporation.

         "WAC INTERIM LOAN" means the loan in the amount of up to $5,000,000 by
WREP to WAC pursuant to the WAC Interim Loan Agreement.

         "WAC INTERIM LOAN AGREEMENT" means that certain loan agreement dated as
of February 1, 1999, by and between WREP and WAC.

         "WAC OUTSTANDING BALANCE" means the outstanding principal balance and
all accrued interest on the WAC Interim Loan as of the Closing Date.

         "WAC STOCK" means all of the issued and outstanding capital stock of
WAC.

         "WFSG INTERIM LOAN" means the loan in the amount of up to $5,000,000 by
WAC to WFSG pursuant to the WFSG Interim Loan Agreement.

         "WFSG INTERIM LOAN AGREEMENT" means that certain loan agreement dated
as of February 1, 1999, by and between WAC and WFSG.

         "WFSG OUTSTANDING BALANCE" means the outstanding principal balance and
all accrued interest on the WFSG Interim Loan as of the Closing Date.

         "WREIT" means Wilshire Real Estate Investment Trust Inc., a Maryland
corporation.

         "WREIT/WREP CLAIM" means the claims of WREIT and WREP against WFSG as
of January 14, 1999, which claim was compromised and settled pursuant to
Paragraph A of the Letter Agreement.

         "WREIT/WREP CLAIM NOTE" means a promissory note in the amount of
$18,400,000 by WFSG to the order of WREP and/or WREIT substantially in the form
attached as EXHIBIT D hereto.

         "WREIT/WREP CLASS" means the class of creditors in the WFSG
reorganization which consists of WREIT and WREP.

                              ARTICLE II. HEADINGS

         Headings in the Loan Documents are for convenience of reference only
and are not part of the substance hereof or thereof.

                                       5
<PAGE>

                             ARTICLE III. THE CREDIT

A.       THE DIP LOAN

         On the terms and subject to the conditions, and relying on the
representations and warranties, contained in this Agreement, WREP agrees to make
the DIP Loan to WFSG.

         1.       The DIP Loan shall be evidenced by the Note and secured by a
                  pledge from WAC and WFSG of the Collateral.

         2.       WREP is hereby granted a security interest in and lien on the
                  Collateral to secure all of the Obligations. Such postpetition
                  security interest shall be valid and enforceable as of the
                  Petition Date and shall have priority over all other security
                  interests and liens. Except as allowed under Article VI below,
                  WFSG shall not create or grant an interest or lien senior to
                  WREP's interest in any of the Collateral without WREP's
                  consent or Bankruptcy Court order.

         3.       Subject to the provisions of Section B.5 below, the DIP Loan
                  shall be disbursed to WFSG, by wire transfer of immediately
                  available funds, on the Closing Date.

B.       REPAYMENT

         The DIP Loan shall be repaid as follows:

         1. From the Closing Date to February 29, 2000, WFSG shall make monthly
payments, on the last day of each month, of accrued interest only on the
outstanding balance of the DIP Loan, at the rate of twelve percent (12%) per
annum, in arrears. Interest shall be calculated based on the actual number of
days elapsed in a year of 360 days.

         2. Commencing on February 29, 2000 and on the last day of each month
thereafter, WFSG shall make equal monthly payments of principal and accrued
interest in an amount that will fully amortize the outstanding principal balance
of the DIP Loan in 48 monthly payments.

         3. All outstanding principal of the DIP Loan and accrued interest
thereon shall be paid in full on February 29, 2004.

         4. Without limiting any of WREP's other remedies, on and after the
occurrence and during the continuance of any Default or Event of Default, WFSG
shall on demand from time to time pay interest, to the extent permitted by law,
on all Obligations outstanding up to the date of cure or waiver of such Default
or Event of Default at a rate per annum equal to fourteen percent (14%) per
annum in lieu of the 12% interest rate. WFSG shall make each payment hereunder
and under any instrument delivered hereunder not later than 5:00 p.m. (Oregon
time) on the day

                                       6
<PAGE>

when due in lawful money of the United States (in freely transferable dollars)
to WREP, in immediately available funds, or as otherwise directed.

         5. WFSG shall apply the proceeds of the DIP Loan to pay the WFSG
Outstanding Balance in full, and shall direct WAC to apply such proceeds to the
WAC Outstanding Balance. The parties agree that on the Closing Date, (a) WREP
may withhold from disbursement of the DIP Loan an amount equal to the WFSG
Outstanding Balance and such amount shall be deemed to be applied to the WFSG
Outstanding Balance, and (b) if the WFSG Outstanding Balance is less than the
WAC Outstanding Balance, WFSG may withhold the difference from disbursement of
the DIP Loan.

         6. Payments under this Section B shall be applied first to accrued
interest through the date of payment, then to principal. If the date specified
for a payment is not a Business Day, then payment shall be due on the next
Business Day. WFSG may prepay the DIP Loan, in whole or in part, at any time
without penalty or prepayment premium.

C.       CONDITIONS OF DIP LOAN

         The obligation of WREP to disburse the DIP Loan is subject to the
satisfaction of all of the following conditions on or prior to the Closing Date.
WREP shall have the sole discretion to waive, in whole or in part, satisfaction
of any of the conditions:

         1.       CONDITIONS PRECEDENT.

                  (a)      CAPITAL RESEARCH RESTRUCTURING. WREP has restructured
                           the Capital Research Loan to provide for terms no
                           less favorable to WREP than the following: (i)
                           interest at 16% per annum, payable monthly, (ii)
                           principal due two years from restructuring, (iii)
                           secured by a lien in WREP's equity in any of WREP's
                           real property other than the Irwindale Property and
                           the Valencia Property, and (iv) prepayable at any
                           time in whole or in part without any penalty, and
                           such other commercially reasonable terms for a loan
                           of its type.

                  (b)      MOTION. WFSG has filed a motion for authorization to
                           incur postpetition debt pursuant to this Agreement,
                           with terms and in a form acceptable to WREP, (the
                           "Motion") and given proper notice of the Motion in
                           accordance with Federal Rule of Bankruptcy Procedure
                           40001(d).

                                       7
<PAGE>

                           (i)      PROPOSAL OF PREPACKAGED PLAN. WFSG has not
                                    materially revised the Prepackaged Plan.

                  (c)      COURT ORDER. After Final Hearing of the Motion , the
                           Bankruptcy Court having jurisdiction over WFSG's
                           Chapter 11 case has entered a final order:

                           (i)      authorizing and approving the DIP Loan on
                                    the terms of this Agreement and the other
                                    Loan Documents;

                           (ii)     granting super-priority and administrative
                                    claim status to WREP's claims under the DIP
                                    Loan pursuant to 11 USC Section 507(b) and
                                    503(b);

                           (iii)    authorizing and approving, pursuant to 11
                                    USC Section 364(c)(2), WFSG's grant to WREP
                                    of a first-priority security interest in the
                                    Collateral in accordance with the Security
                                    Agreement and Article III. A. (2) hereof,
                                    which security interest shall be deemed
                                    perfected without filing or any other act to
                                    effect perfection; and

                           (ii)     finding that in making the DIP loan, WREP is
                                    acting in good faith within the meaning of
                                    11 USC Section 364(e);

                           which Order has not been stayed pending appeal (the
                           "Final Order").

                  (d)      ABSENCE OF MATERIAL CHANGES. From the date of the
                           execution of the loan documents relating to the WFSG
                           Interim Loan, there has been no change that has
                           caused a Material Adverse Effect in the business,
                           assets or results of operations of: (i) WFSG and its
                           subsidiaries taken as a whole, (ii) WAC, or (iii)
                           First Bank.

                  (e)      FINANCING. WREP has arranged for financing, on terms
                           satisfactory to WREP, to obtain funds sufficient to
                           allow WREP to make the DIP Loan.

                  (f)      WREIT/WREP CLAIM NOTE. The WREIT/WREP Claim Note has
                           been executed and delivered.

                                       8
<PAGE>

         2. DOCUMENTATION.

                  WREP has received each of the following duly executed:

                  a)       This Agreement.

                  b)       The Note.

                  c)       The Security Agreement from WFSG and the Security
                           Agreement from WAC pledging the Collateral to secure
                           the Obligations.

                  d)       A good standing certificate for WFSG.

                  e)       Certificate of incumbency from WFSG.

                  f)       A good standing certificate for WAC.

                  g)       Certificate of incumbency from WAC.

                  h)       The WREIT/WREP Claim Note.

         3. COLLATERAL.

                  a)       WFSG has delivered to WREP (as collateral under the
                           Security Agreement) original certificates for the WAC
                           Stock, together with stock powers executed in blank
                           by WFSG.

                  b)       WAC has delivered to WREP (as collateral under the
                           Security Agreement) original certificates for the
                           First Bank Stock, together with stock powers executed
                           in blank by WAC.

         4. REPRESENTATIONS AND WARRANTIES. All representations and warranties
by WFSG and WAC are true and correct in all material respects, and no Default or
Event of Default has occurred and is continuing.

                   ARTICLE IV. REPRESENTATIONS AND WARRANTIES

         A. REPRESENTATIONS AND WARRANTIES OF WFSG

         WFSG hereby makes the following representations and warranties to WREP,
which representations and warranties shall survive the Closing and shall survive
the full and final payment and satisfaction and discharge of all Obligations.

                                       9
<PAGE>

         1. LEGAL STATUS

         WFSG is a corporation, duly organized and existing and in good standing
under the laws of the State of Delaware, and is qualified or licensed to do
business (and is in good standing as a foreign corporation, if applicable) in
all jurisdictions in which such qualification or licensing is required or in
which the failure to so qualify or to be so licensed could have a Material
Adverse Effect.

         2. AUTHORIZATION AND VALIDITY

         Upon authorization by the Bankruptcy Court, WFSG has full power and
legal capacity to execute, deliver, and perform the terms and provisions of this
Agreement and all of the documents and instruments that it is required to
execute, deliver, and perform by the terms of this Agreement. The Loan Documents
have been authorized by WFSG's signature thereto and the performance by it of
its obligations under the Loan Documents constitutes a proper corporate purpose
under all applicable law. Upon their execution and delivery in accordance with
the provisions hereof, the Loan Documents will constitute legal, valid and
binding agreements and obligations of WFSG enforceable against it in accordance
with their respective terms.

         3. NO VIOLATION

         The execution, delivery and performance by WFSG of each of the Loan
Documents do not violate or contravene any provision of its Articles of
Incorporation or By-Laws, do not violate any Government Rule or result in a
breach of or constitute a default under any contract, obligation, indenture or
other instrument to which it or any subsidiary of it is a party or by which it
may be bound, and do not result in the creation or imposition of any Lien upon
any property or assets of the WFSG.

         4. ACCURACY OF REPRESENTATIONS IN SECURITY AGREEMENT

         All representations and warranties of WFSG contained in the Security
Agreement are true and correct in all material respects.

         5. FEDERAL RESERVE REGULATIONS

         WFSG is not engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying
Margin Stock. No part of the proceeds of the DIP Loan will be used, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry Margin Stock or to extend credit to others for the purpose of
purchasing or carrying Margin Stock (except payment on margin calls for
currently held mortgage-backed securities) or to refund Indebtedness originally
incurred for such purpose, or for any purpose which entails a violation of, or
which is inconsistent with, the provisions of the Regulations of the Board,
including, without limitation, Regulation T, U or X thereof.

                                       10
<PAGE>

         6. USE OF PROCEEDS

         The first proceeds of the DIP Loan shall be used by WFSG to pay off in
full the WFSG Outstanding Balance. The balance of the proceeds of the DIP Loan
shall be used by WFSG in the ordinary course of business or for such purposes
outside the ordinary course of business as are consented to by WREP and approved
by the order of the Bankruptcy Court.

         7. NO MATERIAL MISSTATEMENTS

         No information, report, financial statement, exhibit or schedule
prepared or furnished by or on behalf of WFSG to WREP in connection with any
Loan Document or the transactions contemplated thereby or included therein, if
any, contained or contains any material misstatement of fact or omitted or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

         8. SECURITY INTEREST

         WFSG is the record and beneficial owner and holder of the WAC Stock,
free and clear of all encumbrances. The stock certificates of the WAC Stock are
free of any legends or other reference to any purported encumbrance or
restrictions, and they represent all of the outstanding shares issued by WAC.
The Security Agreement creates and grants to the WREP a valid and perfected
first priority security interest in the collateral identified therein. Such
collateral or property is not subject to any other Liens.

         9. TAXES

         WFSG has filed or caused to be filed all federal, state, local and
foreign tax returns which are required to be filed by it, on or prior to the
Closing Date, other than tax returns in respect of taxes that (x) are not
franchise, capital or income taxes, (y) in the aggregate are not material and
(z) would not, if unpaid, result in the imposition of any material Lien on any
property or assets of the WFSG. WFSG has paid or caused to be paid all taxes
shown to be due and payable on such filed returns or on any assessments received
by them, other than any taxes or assessments the validity of which WFSG is
contesting in good faith by appropriate proceedings, and with respect to which
WFSG shall, to the extent required by GAAP have set aside on its books adequate
reserves, and taxes other than income, capital or franchise taxes that in the
aggregate are not material and which would not, if unpaid, result in the
imposition of any material Lien on any property or assets of WFSG.

B. REPRESENTATIONS AND WARRANTIES OF WAC

         WAC hereby makes the following representations and warranties to WREP,
which representations and warranties shall survive the Closing and shall survive
the full and final payment and satisfaction and discharge of all Obligations.

                                       11
<PAGE>

         1. LEGAL STATUS

         WAC is a corporation, duly organized and existing and in good standing
under the laws of the State of Nevada, and is qualified or licensed to do
business (and is in good standing as a foreign corporation, if applicable) in
all jurisdictions in which such qualification or licensing is required or in
which the failure to so qualify or to be so licensed could have a Material
Adverse Effect.

         2. CAPITALIZATION

         The authorized equity securities of WAC consist of (a) fifty million
shares of common stock, par value one cent per share, of which 23,595.4649
shares are issued and outstanding, and (b) two hundred million shares of
preferred stock, par value one cent per share (of which one hundred million
shares are designated Series A Preferred), none of which are issued or
outstanding. All such equity securities shall together constitute the WAC Stock.

         3. AUTHORIZATION AND VALIDITY

         The Loan Documents to which WAC is a party, upon their execution and
delivery in accordance with the provisions hereof, will constitute legal, valid
and binding agreements and obligations of WAC, enforceable against it in
accordance with their respective terms, subject to bankruptcy, insolvency and
other similar laws affecting the enforcement of creditors' rights and general
principles of equity.

         4. NO VIOLATION

         The execution, delivery and performance by WAC of each of the Loan
Documents to which it is a party do not violate or contravene any provision of
its Articles of Incorporation or By-Laws, do not violate any Government Rule or
result in a breach of or constitute a default under any contract, obligation,
indenture or other instrument to which it or any subsidiary of it is a party or
by which it may be bound, and do not result in the creation or imposition of any
Lien upon any property or assets of WAC.

         5. USE OF PROCEEDS

         On the Closing Date, WAC shall use the funds it receives from WFSG in
payment for the WFSG Outstanding Balance, and other funds if necessary, to pay
in full the WAC Outstanding Balance.

                                       12
<PAGE>

         6. SECURITY INTEREST

         WAC is the record and beneficial owner and holder of the First Bank
Stock, free and clear of all encumbrances. The stock certificates of the First
Bank Stock are free of any legends or other reference to any purported
encumbrance or restrictions, and they represent all of the outstanding shares
issued by First Bank. The Security Agreement creates and grants to WREP a valid
and perfected first priority security interest in the First Bank Stock. The
First Bank Stock is not subject to any other Liens. All representations and
warranties of WAC contained in the Security Agreement are true and correct in
all material respects.

                        ARTICLE V. AFFIRMATIVE COVENANTS

         WFSG covenants that for so long as any Obligations remain outstanding,
and until payment in full, in cash, of all Obligations, WFSG shall, unless WREP
otherwise consents in writing and subject to the order by the Bankruptcy Court:

A. PUNCTUAL PAYMENTS AND PERFORMANCE

         Punctually pay and perform all Obligations including, without
limitation, all principal, interest and other liabilities due under any of the
Loan Documents at the times and place and in the manner specified therein, and
perform and comply with all covenants.

B. ACCOUNTING RECORDS

         Keep accurate books and records of its financial affairs sufficient to
permit the preparation of consolidated financial statements therefrom in
accordance with GAAP.

C. FURTHER ASSURANCES

         At the request of WREP at any time and from time to time, duly execute
and deliver, or cause to be duly executed and delivered, such further
agreements, documents and instruments, and do or cause to be done such further
acts as may be necessary or proper to evidence, perfect, maintain and enforce
the security interests and the priority thereof in the Collateral and to
otherwise effectuate the provisions or purposes of this Agreement or any of the
other Loan Documents, at WFSG's expense.

                                       13
<PAGE>

D. LEGAL EXISTENCE

         Do or cause to be done all things necessary to preserve, renew and keep
in full force and effect its legal existence.

E. BUSINESS AND PROPERTIES

         At all times do or cause to be done all things necessary to preserve,
renew and keep in full force and effect the rights, licenses, permits,
franchises, patents, copyrights, trademarks and trade names material to the
conduct of its businesses; and comply in all material respects with all laws,
rules, regulations and governmental orders (whether federal, state or local)
applicable to the operation of its businesses.

F. TAXES

         Pay and discharge promptly when due all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property before the same shall become delinquent or in
default, as well as all lawful claims for labor, materials and supplies or
otherwise, which, if unpaid, might give rise to Liens upon such properties or
any part thereof.

G. BANKRUPTCY COURT ORDER

         Comply with all orders of the Bankruptcy Court.

H. INSPECTION

         Allow WREP or its agents, representatives, or workers to enter WFSG's
places of business at any reasonable time after prior written notice to WFSG for
the purpose of inspecting and copying any of WFSG's books and records, and for
the purpose of performing any of the acts it is authorized to perform under the
terms of this Agreement or any of the other Loan Documents. Any such inspection
shall take place during ordinary business hours and shall not unduly interfere
with the operation of WFSG's business. WREP shall give WFSG reasonable notice
before conducting such an inspection, provided that 24 hours' notice shall
conclusively be deemed reasonable. WREP's inspection rights hereunder shall he
in addition to all of WREP's rights to inspect its collateral under its security
agreements with WFSG and otherwise.

I. REPORTS

         Deliver to WREP copies of all reports filed by WFSG with any
governmental agency.

                                       14
<PAGE>

J. INFORMATION

         With reasonable promptness, provide such other information respecting
the business, operations, and financial condition of WFSG or its affiliates as
WREP may from time to time reasonably request.

K. LICENSES

         Maintain all material licenses, permits, and all related or other
agreements, necessary for WFSG to operate its business, as the same may now
exist or be modified or expanded.

L. COMPLIANCE

         At all times comply with any and all material regulations, rules, or
requirements of any federal agency or department and of any state, local, or
municipal government agency or department that may at any time have jurisdiction
or power to regulate, license, or grant permits in respect of the facilities or
activities of WFSG, whether such regulations, rules, or requirements presently
exist or are modified, promulgated, or implemented after the date hereof.

M. POST-PETITION CLAIMS

         Duly pay and discharge all lawful claims arising after the Petition
Date whether for labor, materials, rentals, or anything else, that might or
could, if unpaid, become a lien or charge upon WFSG's property including, but
not limited to, a lien or charge under Bankruptcy Code Section 506(c), unless
and to the extent only that the validity thereof, after written notice thereof
having been given to WREP, is being contested in good faith and by appropriate
proceedings. In the event any charge is being contested by WFSG as allowed
above, WFSG shall establish adequate reserves against possible liability in
respect thereto.

N. NOTICE OF ACTION OR DISPUTE

         Promptly give written notice to WREP of any of the following with
respect to WFSG:

                  (i) Any (a) refusal or failure by any governmental agency or
         instrumentality to renew or extend any material license, certificate of
         compliance, or permit (b) revocation, termination, or modification
         thereof, or (c) denial or threatened denial or revocation or
         modification by any governmental agency or instrumentality of any
         material authorization required by law.

                  (ii) Any nonrenewal or modification of, any material lease for
         real or personal property to which WFSG is a party.

                  (iii) Any postpetition actions, proceedings, or claims of
         which it may have notice, that may be commenced or asserted against it
         in which the amount involved

                                       15
<PAGE>

         is $1,000,000 or more, and that is not fully covered by insurance or
         that, if not solely a claim for monetary damages, could, if adversely
         determined, have a material adverse effect on it.

O. NOTICE OF DEFAULT

         Promptly notify WREP in the event that WFSG becomes aware of a Default
or Event of Default hereunder.

P. NOTICE OF OFFERS

         Notify WREP of any written offers to purchase WFSG's assets out of the
ordinary course of business.

Q. COPIES

         Provide WREP with copies of all pleadings filed in this case, except
proofs of claim or notices of appearance, that do not evidence service on WREP
or its counsel.

R. STATUS MEETINGS

         Meet with WREP on reasonable notice, at reasonable times, and at
reasonable intervals to inform WREP of the status of the bankruptcy case.

                         ARTICLE VI. NEGATIVE COVENANTS

         WFSG and WAC covenant that so long as any Obligations remain
outstanding, and until payment in full, in cash of all Obligations, WFSG and WAC
will not, unless otherwise permitted by the Bankruptcy Court, without the prior
written consent of WREP:

A. LIENS

         1. Except as otherwise provided in Article VI.A.2 below, incur, create,
assume or permit to exist any Lien on any of the Collateral, whether owned at
the Closing Date or thereafter acquired, or assign or convey any rights to or
security interests in any of the Collateral, except for liens which are
expressly subordinate to WREP's liens in the Collateral.

                                       16
<PAGE>

         2. If WFSG or WAC desires to borrow from a new lender ("New Lender")
secured by a lien on the WAC Stock or the Bank Stock (as the case may be) prior
to WREP's lien on the WAC Stock or the Bank Stock (as the case may be), then
prior to accepting a commitment for a loan ("New Loan") from the New Lender,
WFSG or WAC (as the case may be) shall give written notice to WREP ("Notice of
New Loan") and give WREP the opportunity to make a loan to WFSG and/or WAC (as
the case may be) under the same terms as the New Loan. If WREP declines to make
such loan, or WREP fails to respond within 5 days of receipt of the Notice of
New Loan, WFSG or WAC (as the case may be) shall have the right to complete the
New Loan and WREP shall agree to subordinate the priority of its lien in the WAC
Stock or the First Bank Stock and the right to repayment of the DIP Loan to the
New Loan pursuant to a reasonable subordination agreement, provided that (a)
immediately after the closing of the New Loan, the ratio of all debts of WFSG or
WAC (as the case may be) secured by the WAC Stock or First Bank Stock (as the
case may be) to the tangible equity of WAC or First Bank (as the case may be)
does not exceed 1:2; (b) the term of the New Loan is for not less than two
years; (c) if the interest rate of the New Loan is greater than the interest
rate of the DIP Loan, WREP shall have the right to increase the interest rate of
the DIP Loan (up to the principal amount of the New Loan) to the same interest
rate as the New Loan; and (d) the loan documents of the New Loan shall contain
(i) a provision that in the event of a default by WFSG or WAC (as the case may
be) under the New Loan, the New Lender would give WFSG or WAC (as the case may
be) and WREP written notice of such default and an opportunity to cure within 30
days of such notice; (ii) in the event an action for foreclosure is instituted
against WFSG or WAC (as the case may be) by the New Lender, WFSG or WAC (as the
case may be) or WREP shall have the right to redeem the WAC Stock or the First
Bank Stock (as the case may be) from the foreclosure up to the completion of the
foreclosure proceedings but in no event less than 90 days from the notice of
default; and (iii) such other commercially reasonable terms for a loan of its
type.

B. DIVIDENDS, DISTRIBUTIONS AND PAYMENTS

         Declare or pay, directly and indirectly, any dividends, whether in cash
or otherwise, with respect to (whether by reduction of capital or otherwise) any
shares of its capital stock, provided however WAC may pay dividends on preferred
stock as required thereby.

C. INVESTMENTS

         Make any investments, except in the ordinary course of business in
accordance with its historical practices.

D. MODIFICATION OF CHARTER DOCUMENTS

         Modify, amend or alter, or permit the modification, amendment or
alteration, of its certificate or articles of incorporation in any manner
materially adverse to the interests of the WREP as the lender hereunder.

                                       17
<PAGE>

E. SEPARATE COVENANTS WITH RESPECT TO WFSG.

         WFSG shall not:

         1. sell its assets outside of the ordinary course of business; except
in accordance with the Prepackaged Plan;

         2. commingle its assets with those of any other entity.

                         ARTICLE VII. EVENTS OF DEFAULT

A.       EVENTS OF DEFAULT

         The occurrence of any of the following shall constitute an "Event of
Default" under this Agreement:

         1. Failure to have properly noticed and completed the Final Hearing on
the Motion within 45 days of the Petition Date unless WREP approves in writing
of additional time.

         2. A notice of lien, levy, or assessment is filed of record with
respect to all or a part of the Collateral and the same is not released within
30 days.

         3. Custody or control of any substantial part of WFSG's property is
assumed by any governmental agency or authority or any court of competent
jurisdiction at the insistence of any governmental agency or authority, or any
governmental regulatory agency or authority takes any final action that would
have a material adverse effect on the Collateral.

         4. There shall occur any refusal or failure by any governmental
agency or instrumentality to issue, renew, or extend any lease, license,
contract, certificate of compliance, or permit with respect to the operation
of the business of WFSG, or any denial, forfeiture or revocation by any
governmental agency or instrumentality of any license, permit, or
authorization required by law, which refusal, failure, denial, forfeiture or
revocation could have a material adverse effect on WFSG and the Collateral.

         5. Any event occurs that specifically affects WFSG and that has a
material adverse effect upon the business or financial condition of WFSG, and
that materially increases WREP's risk or materially impairs the Collateral.

         6. WFSG's authority to borrow from WREP terminates or expires.

         7. The Bankruptcy Court announces from the bench or enters any order or
judgment holding any material provision of this Agreement invalid or
unenforceable and such order or judgment materially and adversely affects WREP.

                                       18
<PAGE>

         8. The Bankruptcy Court announces from the bench or enters any order
dismissing WFSG's bankruptcy case, converting that case to a chapter 7 case, or
appointing a trustee, or WFSG files a motion to convert that case to a chapter 7
case or a motion to have a trustee appointed.

         9. WFSG fails to pay when due any amount payable under any of the Loan
Documents, or WFSG otherwise defaults in the performance of or compliance with
any other obligation, agreement or other provision contained in any Loan
Document and such failure continues for at least 10 days;

         10. Any representation or warranty made by WFSG under, or in connection
with, any of the Loan Documents, was false or misleading in any material respect
when furnished or made;

         11. Any representation or warranty made by WAC under, or in connection
with, any of the Loan Documents, was false or misleading in any material respect
when furnished or made;

         12. An "event of default" occurs under the Security Agreement; or

         13. This Agreement, or any other Loan Documents, for any reason cease
to be, or are asserted by WFSG or WAC not to be, legal, valid and binding
obligations, enforceable in accordance with their terms, or the security
interest created by the Security Agreement for any reason ceases to be a valid,
first priority perfected security interest in the Collateral.

B. REMEDIES

         Upon the occurrence or existence of (a) an Event of Default which
relates to WFSG's obligation to make payments hereunder, or (b) an Event of
Default which relates to WFSG's or WAC's non-monetary obligation hereunder which
remains uncured for a period of 20 days after written notice from WREP, and at
any time thereafter during the continuance of such Event of Default, by written
notice to WFSG or WAC, as the case may be, WREP may declare all or any part of
the Obligations to be immediately due and payable without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived by WFSG or WAC (as the case may be) and may, subject to the approval, if
any, of any Governmental Authority, including the Office of Thrift Supervision,
exercise its remedies under the Security Agreement and/or any of the other Loan
Documents.

                                       19
<PAGE>

                           ARTICLE VIII. MISCELLANEOUS

A. CONTINUING OBLIGATIONS

         Termination of this Agreement or the other Loan Documents shall not
relieve or discharge WFSG of its duties, obligations and covenants under the
Loan Documents until all Obligations have been fully and finally discharged and
paid in cash.

B. NOTICES

         All notices, requests and demands that a party is required or may
desire to give to the other party under any provision of this Agreement must be
in writing delivered to the other party at the following address:

         WFSG:             WILSHIRE FINANCIAL SERVICES GROUP INC.
                           1776 SW Madison Street
                           Portland, Oregon  9720
                           Attention:  Andrew Wiederhorn
                           Telecopy:  (503) 223-8799

                           with a copy to:

                           Gary R. Barnum
                           Stoel Rives LLP
                           Suite 2300
                           900 SW Fifth Avenue
                           Portland, OR 97204
                           Telecopy:  (503) 220-2480

                           Latham & Watkins
                           633 West Fifth Street, Suite 4000
                           Los Angeles, California 90071-2007
                           Attention:  Benjamin J. Murphy
                           Telecopy:  (213) 891-8763

         WAC:              WILSHIRE ACQUISITIONS CORPORATION
                           1776 SW Madison Street
                           Portland, Oregon  97205
                           Attention:  Lawrence Mendelsohn
                           Telecopy:  (503) 223-8799

                           with copies to:

                                       20
<PAGE>

                           WILSHIRE ACQUISITIONS CORPORATION
                           1776 SW Madison Street
                           Portland, Oregon  97205
                           Attention:  Mark Peterman
                           Telecopy:  (503) 223-8799

                           Latham & Watkins
                           633 West Fifth Street, Suite 4000
                           Los Angeles, California  90071-2007
                           Attention:  Bennett J. Murphy
                           Telecopy:  (213) 891-8763

                           and

                           Stoel Rives LLP
                           900 SW Fifth Avenue, Suite 2600
                           Portland, Oregon 97204-1268
                           Attention:  Mark A. Norby
                           Telecopy:  (503) 220-2480

         WREP:             WILSHIRE REAL ESTATE PARTNERSHIP L.P.
                           1776 SW Madison Street
                           Portland, Oregon  97205
                           Attention:  Andrew Wiederhorn
                           Telecopy:  (503) 223-8799

                           with a copy to:

                           Davis Wright Tremaine LLP
                           1300 SW Fifth Avenue, Suite 2300
                           Portland, OR 97034
                           Attention:  James C. Waggoner
                           Telecopy:  (503) 778-5299

or to such other address as a party may designate by written notice to the other
party. Each such notice, request and demand shall be deemed given or made as
follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon
the earlier of the date of receipt or three days after deposit in the U.S. mail,
first class and postage prepaid; and (c) if sent by telecopy, upon receipt and
the sender will endeavor to send a hard copy of such telecopied notice to the
recipient by mail.

                                       21
<PAGE>

C. SUCCESSORS; ASSIGNMENT

         This Agreement shall be binding upon and insure to the benefit of the
successors and assigns of the parties; provided, however, that WFSG may not
assign or transfer its interest hereunder.

D. ENTIRE AGREEMENT; AMENDMENT

         The Loan Documents constitute the entire agreement between WFSG and
WREP with respect to the DIP Loan and supersede all prior negotiations,
communications, discussions and correspondence concerning the subject matter
hereof, PROVIDED that the terms of the Letter Agreement with respect to the
subject matters contained herein shall be incorporated by this reference. This
Agreement may be amended or modified only by a written instrument executed by
each party hereto.

E. THIRD PARTY BENEFICIARIES

         This Agreement is made and entered into the for sole protection and
benefit of the parties hereto and their respective permitted successors and
assigns, and no other Person shall be a third party beneficiary or, or have any
direct or indirect cause of action or claim in connection with, this Agreement
or any other of the Loan Documents to which it is not a party.

F. TIME

         Time is of the essence of each and every provision of the Loan
Documents.

G. SEVERABILITY OF PROVISIONS

         If any provision of this Agreement shall be prohibited by or invalid
under applicable law, such provision shall be ineffective only to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or any remaining provisions of this Agreement.

H. COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
which when executed and delivered shall be deemed to be an original, and all of
which when taken together shall constitute one and the same Agreement.

I. EXPENSES; ATTORNEY FEES; INDEMNITY

         1. In the event any suit, action or arbitration is instituted to
enforce or interpret any of the terms, or if any proceeding is commenced which
arises out of, or which relates to this Agreement, including any action or
participation in or in connection with a case proceeding under any Chapter of
the Bankruptcy Code or any successor statute, the prevailing party shall be

                                       22
<PAGE>

entitled to such sum as the court or arbitrator may adjudge reasonable as
attorney fees and costs in such suit, action or arbitration or upon any appeal
from any judgment, order, decree or award entered therein, and whether or not
such fees and costs are prescribed by statute. Whether or not any court action
or arbitration is involved, after the occurrence of an Event of Default, WFSG
agrees to pay all reasonable attorney fees and costs incurred by WREP to protect
its interests or enforce its rights hereunder.

         2. WFSG agrees to indemnify WREP and Wilshire Real Estate Investment
Trust Inc. and their directors, officers, employees and agents against, and
agrees to hold WREP and Wilshire Real Estate Investment Trust Inc. and each such
person harmless from, any and all losses, claims, damages, liabilities, fines,
penalties and related expenses, including reasonable counsel fees and expenses,
incurred by or asserted against them, or any of them, arising out of, in any way
connected with, or as a result of:

         a)       breach of any representation or warranty,

         b)       a violation of, or failure to comply with, any environmental
                  law, rule or regulation, or

         c)       any claim, litigation, investigation or proceedings related to
                  any of the foregoing, whether or not WREP or any such person
                  is a party thereto; provided, however, that such indemnity
                  shall not apply to any such losses, claims, damages,
                  liabilities or related expenses to the extent that they result
                  from the negligence or misconduct of WREP.

J. WAIVER OF JURY TRIAL

         1. Except as prohibited by law, each party hereto hereby waives any
right it may have to a trial by jury in respect of any litigation directly or
indirectly arising out of, under on in connection with this Agreement, the Note,
any of the other Loan Documents or the transactions contemplated hereby.

         2. Except as prohibited by law, each party hereto hereby waives any
right it may have to claim or recover in any litigation referred to in paragraph
(a) of this Section J any special, exemplary, punitive or consequential damages
or any damages other than, or in addition to, actual damages.

         3. Each party hereto certifies that no representative, agent or
attorney of the other party has represented, expressly or otherwise, that other
party would not, in the event of litigation, seek to enforce the foregoing
waivers and acknowledges that it has been induced to enter into this Agreement,
the Note or the other Loan Documents, as applicable, by, among other things, the
mutual waivers and certifications herein.

                                       23
<PAGE>

WAIVER AND ESTOPPEL. WREP may at any time and from time to time waive in writing
any one or more of the terms and/or conditions contained in this Agreement, but
any such waiver shall be deemed to be made pursuant to this Agreement and not in
modification thereof, and any such waiver in any instance shall not be construed
a waiver of such condition in any other circumstance or in any subsequent
Default or Event of Default. The failure of WREP to promptly exercise its rights
or remedies shall not be deemed to be a waiver or grounds for the claim of
estoppel.

K. GOVERNING LAW

         This Agreement shall be government by and construed in accordance with
the laws of the State of Oregon.

L. OREGON STATUTORY NOTICE

         UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY
WREP AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH
ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY WFSG'S
RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY WREP TO BE
ENFORCEABLE.

         IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE
EXECUTED AS OF THE DAY AND YEAR FIRST WRITTEN ABOVE.

WILSHIRE REAL ESTATE PARTNERSHIP L.P.
A DELAWARE LIMITED PARTNERSHIP

By:      WILSHIRE REAL ESTATE INVESTMENT TRUST INC.,
         a Maryland corporation, its General Partner

         By:      ____________________________
         Title:   ____________________________

WILSHIRE FINANCIAL SERVICES GROUP INC.,
A DELAWARE CORPORATION

By:      _______________________
Its:     _______________________

With respect to Sections III.B.5 (Repayment), III.C.3 (Collateral), IV.B.
(Representations and Warranties) and VI.A.2 (New Loan) of this Agreement only.

                                       24
<PAGE>

WILSHIRE ACQUISITIONS CORPORATION,
A  NEVADA CORPORATION

By:      _________________________
Title:   _________________________

                                       25

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