Document:

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                                                                    EXHIBIT 10.2

                         EMPLOYMENT SEPARATION AGREEMENT
                          AND RELEASE OF ALL LIABILITY

         This Employment Separation Agreement and Release of All Liability
("Agreement") is made on May 13, 2003 between Mark J. O'Brien ("Executive") and
Pulte Homes, Inc., a Michigan corporation ("Pulte"). As used in this Agreement,
"Employer" means Pulte, its successors, assigns, parents, subsidiaries,
divisions and/or affiliates (whether incorporated or unincorporated), and all of
its past and present directors, officers, trustees, employees and agents (in
their individual and representative capacities) of each and any and all persons
acting by, through, or in concert with any of them.

                                    RECITALS

         A.       Executive has worked in the employ of Employer since 1982;
currently, he is the President and Chief Executive Officer and a Director of
Pulte.

         B.       Executive will resign from his employment on June 30, 2003
(the "Termination Date").

         C.       In consideration of payments to be made, and benefits to be
provided, by Employer to Executive, Executive and Employer have each agreed to
release the other from any liability to the other and to the other matters set
forth in this Agreement.

         Therefore, Executive and Employer agree as follows:

         1.       Executive resigns from all of his positions with Employer
(including from the Board of Directors of Employer), effective on the
Termination Date.

         2.       The following will be Executive's sole and exclusive payments
and benefits with respect to Executive's continued employment through the
Termination Date, the termination of Executive's employment with Employer and
Executive's other obligations under this Agreement:

                  (a)      As long as he remains employed by Employer, Executive
will receive a continuation of his current monthly salary of $70,833.33 and a
continuation of his current fringe benefits until the Termination Date.
Executive will also be entitled to receive a bonus with respect to the year
ending December 31, 2003 in an amount equal to $3,200,000. The salary and bonus
referred to in this paragraph 2(a) will be paid in accordance with Employer's
normal payroll procedures and policies, except that the bonus will be paid on
January 9, 2004. The usual withholdings and deductions for applicable taxes and
the like will be deducted from all payments to Executive under this paragraph
2(a).

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                  (b)      In return for the consulting services described in
Exhibit 1 to this Agreement, Executive will receive 18 monthly payments of
$70,833.33 each, payable on the first business day of each month beginning on
July 1, 2003 and ending on December 1, 2004.

                  (c)      Executive will be entitled to:

                  (1)      $1,925,000, which represents an amount equal to the
                  entire maximum award which would have been payable to him
                  under the Long-Term Incentive Plan for Key Executives which
                  commenced on January 1, 2001; such amount will be payable on
                  the date that awards are payable to Pulte executives under
                  such plan.

                  (2)      $1,966,667, which represents an amount equal to the
                  sum of (A) 1/2 of Executive's maximum award which would have
                  been payable to him under the Long-Term Incentive Plan for Key
                  Executives which commenced on January 1, 2002 ($1,400,000),
                  plus (B) 1/6 of Executive's maximum award which would have
                  been payable to him under the Long Term Incentive Plan for Key
                  Executives which commenced on January 1, 2003 ($566,667); such
                  payment will be made on June 30, 2004.

Payments to Executive under this paragraph 2(c) will be made irrespective of
whether awards are payable to Pulte executives under such plans, and the amount
of such payments will not change even if a greater or lesser amount would have
ultimately been earned for Executive's account under the plans had he remained a
participant under such plans for the duration of the plans. Payments under this
paragraph 2(c) will be in lieu of any other awards or payments which may be owed
under the long-term compensation plans referred to in this paragraph. Payments
under this paragraph 2 will be made by direct deposit to such accounts as
Executive advises Pulte in writing from time to time.

                  (d)      Employer will provide Executive and his spouse with
continued medical and dental insurance coverage and will use its best
commercially reasonable efforts to obtain for Executive continued disability and
life insurance coverage, in each case with benefits substantially equivalent to
Executive's current coverage, until Executive reaches age 65. Executive will
cooperate with Employer in its efforts to obtain disability and life insurance
coverage, including, if required by the prospective insurer, submitting to a
physical examination. If Employer is unable to obtain disability and/or life
insurance coverage for Executive at standard rates, it will not be required to
obtain such coverage. In such case, if Executive desires to purchase such
coverage, Employer will, upon Executive's request, contribute an amount equal to
the standard rate for such coverage to Executive's cost of purchasing such
coverage. If Executive dies or becomes disabled before reaching age 65 and is
survived by his wife, such medical and dental benefits will be provided to
Executive's widow until the date that would have been Executive's 65th birthday.
Executive (or his widow) will reimburse Pulte, on request (but not more often
than quarterly), for the same portion of the premium for such coverage as Pulte
senior executives reimburse Pulte for their own health, dental, disability, and
life insurance coverage (as applicable).

                                       2

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                  (e)      From July 1, 2003 until December 31, 2003, Executive
will be entitled to reasonable secretarial support, at no charge, from a Pulte
secretary (Karen O'Paterny).

                  (f)      Pulte will use its best commercially reasonable
efforts to assign to Executive the lease of the 2003 Lexus SC430 convertible
currently used by Executive. Upon such assignment, Pulte will (at its cost) have
the automobile moved to Executive's Florida residence.

                  (g)      Pulte (or a Pulte subsidiary) will assume Executive's
obligations under the lease of apartment premises at 444 Chester (the "Apartment
Lease"). If, for any reason, Pulte is not allowed by the landlord under the
Apartment Lease to assume the Apartment Lease, it will pay directly to the
landlord, on Executive's behalf, all remaining obligations under the Apartment
Lease. Executive will vacate the apartment premises by June 10, 2003. To induce
Pulte to assume the Apartment Lease, Executive represents and warrants to Pulte
as follows:

                           (1)      Executive has delivered to Pulte a true and
                  correct copy of the Apartment Lease.

                           (2)      Executive is not in default under the
                  Apartment Lease.

Executive will indemnify and hold Employer harmless against any costs or
liability incurred by Employer as a result of Executive's breach of his
representations and warranties under this paragraph 2(g).

                  (h)      Executive will be allowed to retain (1) his laptop
computer after Pulte's Information Systems representatives have removed all
confidential and proprietary information from the computer; (2) his
company-provided palm pilot; (3) his company-provided cellular phone; and (4)
other miscellaneous personal items.

                  (i)      Pulte will (at its cost) cause all of Executive's
personal furnishings to be packed and moved from his Michigan apartment and/or
office to his Florida residence.

                  (j)      Pulte will reimburse Executive for the following
professional fees which may be incurred by him: (1) up to $15,000 in connection
with the preparation and negotiation of this Agreement (including tax planning);
and (2) up to $8,500 per year for tax and financial advisory services rendered
with respect to the calendar years ending December 31, 2003 and 2004,
respectively. Fees will be paid by Pulte under this paragraph 2(j) upon
Executive's presentation to Pulte of bona fide statements for services rendered.

                  (k)      Pulte will make all remaining premium payments under
the split dollar insurance policy maintained by Pulte on Executive's behalf, and
Executive will have no further obligations with respect to such insurance. All
documents relating to such insurance will remain in full force and effect.

         The amounts payable, and the benefits provided, under this paragraph 2
will continue to be payable and provided notwithstanding Executive's death or
disability.

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         Executive will indemnify Employer for any taxes, interest and penalties
payable or claimed by appropriate authorities to be payable in respect of the
payments and benefits described in this paragraph 2 that result from Executive's
failure to pay or timely pay such taxes, interest and/or penalties.

         3.       For the consideration described in this Agreement, Employer
and Executive hereby fully and forever mutually release, acquit and discharge
each other from and for all manner of claims, counterclaims, causes of action,
bonds, bills, debts, sums of money, commissions, compensation for purported
personal services rendered, damages and rights whatsoever, in law or in equity,
now existing in its or his favor by reason of any facts, known or unknown,
including under Pulte's Long-Term Incentive Plans for Key Executives (except for
the payments described in paragraph 2(c) above in lieu of payments under such
plans). This release does not cover any breach of this Agreement (including
Pulte's and Executive's obligations under paragraph 2 above).

         4.       Except for actions or suits based upon breaches of this
Agreement, each of Executive and Employer will refrain from commencing any suit,
claim or action, or prosecuting any pending action, claim or suit, in law or in
equity, against the other on account of any employment related action or cause
of action based upon any facts, whether known or unknown, including all claims
for wrongful discharge, breach of contract, violation of the penal statutes,
negligence of any kind, intentional infliction of emotional distress, defamation
and/or discrimination on account of sex, age, race, handicap or nationality
which has or could have been alleged under the common law or any federal, state
or local statute or ordinance, including: Title VII of the Civil Rights Act of
1964; the Age Discrimination in Employment Act; the Rehabilitation Act of 1973;
the Older Workers Benefit Protection Act; the Americans With Disabilities Act;
the Family and Medical Leave Act of 1993; the Elliott-Larsen Civil Rights Act;
the Michigan Handicappers Civil Rights Act; the Michigan Whistle Blowers
Protection Act; the Michigan Wage and Benefit Act; and any and all amendments to
any of the foregoing.

         5.       Executive will forever maintain as confidential all
confidential information of Employer. For purposes of this Agreement,
confidential information means all confidential and proprietary information of
Employer, including confidential and proprietary data, know-how, schedules,
processes, designs, sketches, photographs, plans, drawings, specifications,
samples, reports, vendor information, pricing information, market definitions,
inventions, ideas and information obtained from Employer as well as strategic
information concerning Employer. Confidential information may be written or
oral. Confidential information will not include information which:

                           (1)      is or becomes severally available to the
                  public other than as a result of Executive's disclosure; or

                           (2)      becomes available to Executive on a
                  non-confidential basis from a source other than Employer
                  provided that such source is not bound by a confidentiality
                  agreement with or other obligation of secrecy to Employer
                  which is known to Executive.

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Executive will be allowed to disclose confidential information if required by
law to do so. However, if practicable, Executive will advise Employer of such
legal requirements prior to making such disclosure, so that Employer may attempt
(at no cost or penalty to Executive) to seek an appropriate protective order or
legal limitation on such disclosure.

                  (b)      From the date of this Agreement until June 30, 2005,
Executive will not, directly or indirectly:

                           (1)      Engage in, or have an interest in or be
                  associated with (whether as an officer, director, stockholder,
                  partner, member, associate, employee, consultant, owner or
                  otherwise), a "Competing Business", which is any corporation,
                  partnership, limited liability company, firm or enterprise
                  (including a sole proprietorship) which directly competes with
                  Employer anywhere in the United States, Puerto Rico or Latin
                  America. Notwithstanding the foregoing, Executive may invest
                  in any publicly-held corporation engaged in a Competing
                  Business if (A) such investment does not exceed 5% in value of
                  the issued and outstanding capital stock of such corporation
                  and (B) Executive is not otherwise affiliated with such
                  corporation.

                           (2)      Employ any person known by Executive to be
                  an employee of Employer or induce or attempt to induce any
                  person known by Executive to be an employee of Employer or any
                  of its affiliates to leave the employment of the Employer or
                  such affiliate.

                           (3)      Deliberately attempt to materially and
                  adversely affect the relationship between Employer and (i) any
                  of its vendors, contractors, subcontractors, shareholders, or
                  customers, (ii) the financial community, or (iii) the public.

The provisions of this paragraph 5(b) will automatically terminate if (i)
Employer breaches this Agreement by failing to pay Executive any payment or to
provide any benefit to Executive when and as due under this Agreement and (ii)
Employer fails to cure such breach within 10 days after written notice from
Executive to Employer of such breach by Employer. Before being deemed to be in
violation of clause (1) of this paragraph 5(b), Executive must be given written
notice from Pulte and a 10 day right to cure; such cure will include repaying to
Pulte all amounts paid or payable to Executive from or with respect to the
activity which violates clause (1).

                  (c)      If Executive violates this paragraph 5 in any
material respect (and Pulte has not previously consented in writing to the
action which constitutes the violation), Employer will be entitled to all
remedies available to it under law or equity (including specific performance, a
claim for damages, including a refund of amounts previously paid or benefits
provided by Employer pursuant to paragraph 2(b) of this Agreement, and
termination of any or all of the remaining payments and benefits described under
paragraph 2(b) above). Such exercise of rights and remedies will not be
considered a breach of this Agreement by Employer.

                                       5

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         6.       Except as may be required by law, (a) Executive will not
directly or indirectly assist or aid any other person, corporation, firm,
partnership or other entity, in or about any action, cause of action, suit,
claim, proceeding, litigation or other matter against Employer (collectively,
"Covered Matters") and (b) Executive will not communicate with, either orally or
in writing, in any manner whatsoever, any other person, corporation, firm,
partnership or other entity, in or about any Covered Matter other than
communications with members of Executive's family, friends and professional
advisors as long as such communications are conducted in a fashion which will
not and could not reasonably be expected to adversely affect Employer.

         7.       On the Termination Date:

                  (a)      Except for the items retained by Executive under
paragraph 2 above, Executive will return to Employer all materials, files and
any other property which belong to Employer (including his security cards, keys,
and telephone credit card); and

                  (b)      Executive and Employer will execute and deliver the
agreement attached as Exhibit 2 to this Agreement (the "Bring-down Release") in
order to re-affirm the release and covenant not to sue which are reflected in
paragraphs 3 and 4 above, effective as of the Termination Date. The parties'
failure or a party's refusal to execute and deliver the Bring-down Release will
not invalidate or diminish the effectiveness of the release and covenant not to
sue set forth in paragraphs 3 and 4 above.

         8.       Executive is completely able to perform the duties of his
position at Employer, and has no disability recognized under the Workers'
Compensation Act or otherwise. Executive will not claim or collect state
unemployment benefits in connection with the termination of his employment with
Employer. If Executive violates this covenant or if Executive claims or collects
any worker's compensation benefits with respect to his employment by Employer,
he will immediately forfeit or refund that portion of the consideration paid or
payable by Employer to Executive under this Agreement which is equal to the
unemployment or worker's compensation benefits, as applicable, received by
Executive.

         9.       Pulte will indemnify and hold Executive harmless from any
claims, demands and complaints made by any third party, which arise out of or
relate to Executive's good faith performance of his job duties during the term
of his employment by Employer and of his consulting duties under this Agreement,
in accordance with Employer's bylaws and applicable law. Executive will advise
Employer of any such claim immediately upon becoming aware of it. Employer's
agreement in this respect is based and reliant upon Executive's specific
representation that he is not presently aware, nor does he have any reason to
suspect, that any such claim, demand or complaint will be forthcoming, other
than with respect to any matter which has been disclosed in Item 3 of Pulte's
Annual Report on Form 10-K for the fiscal year ended December 31, 2002 or in
Pulte's Quarterly Report on Form 10-Q with respect to the fiscal quarter ended
March 31, 2003.

         10.      Executive will retain all of his Pulte stock options in
accordance with the stock option agreements which evidence such option grants
(the "Option Agreements"). Such options will not be subject to any restriction
or forfeiture under this agreement (including paragraphs 5 and 6 above) but will
continue to be subject to the Option Agreements.

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         11.      (a)      This Agreement, which will be effective and
irrevocable immediately upon the time limits described in this Agreement,
reflects the entire agreement of Executive and Employer relative to its subject
matter, and supersedes all prior or contemporaneous oral or written
understandings, statements, representations or promises with respect to the
termination of Executive's employment, including the confidentiality,
non-competition and non-solicitation agreement delivered by Executive to
Employer in 2000.

                  (b)      This Agreement may not be amended except by a written
instrument signed by Executive and Pulte, on behalf of Employer.

                  (c)      This Agreement will be construed in accordance with
and governed by Michigan law. The sole forum for any dispute under this
Agreement will be the Oakland County (Michigan) Circuit Court; the parties
consent to the exclusive jurisdiction of such court.

         12.      Executive will use his best reasonable efforts to maintain,
and will instruct his attorneys, accountants and tax and financial advisors and
consultants to maintain, the confidentiality of the existence and terms of this
Agreement, and any underlying conversations, discussions, documents,
correspondence or agreements in furtherance thereof or in connection or leading
thereto. However, Executive will be entitled to disclose (a) information to the
extent required by law, (b) information which becomes a matter of public record
(other than as a result of Executive's disclosure thereof), (c) information to
his immediate family but only after instructing them to keep such information
confidential and (d) the existence of his non-disclosure obligation or other
obligations under this Agreement to any person who requests that Executive
disclose information in violation of this paragraph 12 or otherwise requests
that Executive take action in violation of this Agreement.

         13.      Upon request of Executive, as long as he is not in default of
this Agreement, Pulte will provide a favorable reference on behalf of Executive
to prospective employers and other persons doing business with Executive.
Neither Executive nor Employer will disparage the other in any way.

         14.      EXECUTIVE UNDERSTANDS THAT BY THIS AGREEMENT HE IS WAIVING ANY
RIGHTS HE MAY PRESENTLY HAVE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, AS
AMENDED. EXECUTIVE ENTERS INTO THIS AGREEMENT FREELY AND VOLUNTARILY WITHOUT ANY
DURESS OR COERCION, AND AFTER HE HAS CAREFULLY AND COMPLETELY READ ALL OF THE
TERMS AND PROVISIONS OF THIS AGREEMENT. HE HAS BEEN ADVISED TO CONSULT WITH
LEGAL COUNSEL AND UNDERSTANDS HE WILL BE ALLOWED TO CONSIDER THIS AGREEMENT FOR
21 DAYS PRIOR TO SIGNING IT. EXECUTIVE UNDERSTANDS THAT THIS AGREEMENT SHALL NOT
BECOME EFFECTIVE FOR SEVEN DAYS FOLLOWING THE DATE IT IS SIGNED, DURING WHICH
TIME HE MAY REVOKE THIS AGREEMENT BY WRITTEN NOTICE TO EMPLOYER, IN CARE OF JOHN
R. STOLLER, SENIOR VICE PRESIDENT AND GENERAL COUNSEL. EXECUTIVE UNDERSTANDS
THAT PAYMENTS TO BE MADE TO HIM AS PROVIDED IN THIS AGREEMENT WILL NOT COMMENCE
UNTIL THE EXPIRATION OF SUCH DAYS.

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Date: May 13, 2003                     /s/  Mark J. O'Brien
                                    --------------------------------
                                            Mark J. O'Brien

                                    Pulte Homes, Inc. (on behalf of itself and
                                    all entities which constitute "Employer"
                                    under this Agreement)

Date: May 13, 2003                  By: /s/ Roger A. Cregg
                                       -------------------------
                                          Name: Roger Cregg
                                          Title: Senior Vice President and Chief
                                                 Financial Officer

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EXHIBIT 1

                               CONSULTING SERVICES

         Unless otherwise defined in this Schedule, all capitalized terms used
in this Schedule will have the meanings given to them in the employment
separation agreement and release of liability entered into today between Mark J.
O'Brien and Pulte Homes, Inc.

         1.       During the Consulting Term (which begins on July 1, 2003 and
will end on December 31, 2004), Executive will, upon reasonable notice from
Employer, provide consulting services ("Services") to Employer in connection
with Employer's business, including domestic and international homebuilding,
merger and acquisition opportunities, and other aspects of Employer's business.
Executive will not be required to perform more than 10 hours of Services in any
calendar month; unused portions of such 10 hour maximum will not be used in
subsequent months. Executive will not be required to travel away from his
Florida residence, except to assist Pulte in testimony or preparation for any
litigation or proceedings relating to matters or events which arose or took
place during his employment with Pulte and then only with reasonable advance
notice from Pulte.

         2.       The Services will be rendered on a part-time basis only, at
such times as Executive and Employer mutually agree in good faith. Every
reasonable attempt will be made by Employer to accommodate Executive's full time
occupation when scheduling the time and place for the delivery of the Services.
Executive will be free to engage in any other activities, subject to paragraph 5
of the Agreement.

         3.       Executive will at all times during the Consulting Term be an
independent contractor of Employer, and will not be considered as having
"employee status" with Employer for any purpose.

         4.       Executive will not have any authority to enter into any
contract or agreement on behalf of Employer or to bind or commit Employer orally
or in writing, except to the extent he has been so authorized by the chief
executive officer or chief operating officer of Pulte.

         5.       Executive will be reimbursed for all reasonable, necessary and
pre-approved business related travel and other out-of-pocket expenses incurred
by him in performing Services upon presentation of receipts or expense vouchers
for such expenses in accordance with Employer's usual accounting procedures.

                                             Initials:

                                                   MJO
                                             -----------------

                                                   RAC
                                             -----------------

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EXHIBIT 2

                              "BRING-DOWN RELEASE"

         This "Bring-Down" Release ("Release") is entered into on June 30, 2003
between Mark J. O'Brien ("Executive") and Pulte Homes, Inc., a Michigan
corporation ("Pulte"). Except as otherwise defined in this Release, all
capitalized terms used in this Release have the meanings given to them in the
Agreement (as defined in Recital A. below).

                                    RECITALS

         A.       Executive and Pulte are parties to an Employment Separation
Agreement and Release of all Liability dated May 13, 2003 (the "Agreement").

         B.       Pursuant to paragraph 7(b) of the Agreement, the parties
agreed to execute and deliver this Release on the Termination Date.

         Therefore, the parties agree as follows:

         1.       The release provisions of paragraph 3 of the Agreement are
ratified and confirmed by Executive and Pulte, on behalf of Employer, and will
be deemed given on this date.

         2.       Neither Executive nor Employer will challenge or seek to avoid
this Release or the release made in the Agreement, and any attempt to do so will
be a violation of the Agreement. The invalidity of this Release will not in any
way affect the release provisions of the Agreement.

         3.       The remainder of the Agreement will continue in full force and
effect.

                                            ________________________________
Date: June 30, 2003                         Mark J. O'Brien

                                            Pulte Homes, Inc.

Date: June 30, 2003                         By:_____________________________
                                            Name:
                                            Title:

                                       10<PAGE>

                                                                    EXHIBIT 10.3

[THE BOND MARKET ASSOCIATION LOGO]

     Master Repurchase Agreement

     September 1996 VERSION

     Dated as of December 22, 2000

     Between: Pulte Mortgage Corporation, as Seller

     And      Pulte Funding, Inc., as Buyer

     1.   APPLICABILITY

          From time to time the parties hereto may enter into transactions in
          which one party ("Seller") agrees to transfer to the other ("Buyer")
          securities or other assets ("Securities") against the transfer of
          funds by Buyer, with a simultaneous agreement by Buyer to transfer to
          Seller such Securities at a date certain or on demand, against the
          transfer of funds by Seller. Each such transaction shall be referred
          to herein as a "Transaction" and, unless otherwise agreed in writing,
          shall be governed by this Agreement, including any supplemental terms
          or conditions contained in Annex I hereto and in any other annexes
          identified herein or therein as applicable hereunder.

     3.   DEFINITIONS

          (a)  "Act of Insolvency", with respect to any party, (i) the
               commencement by such party as debtor of any case or proceeding
               under any bankruptcy, insolvency, reorganization, liquidation,
               moratorium, dissolution, delinquency or similar law, or such
               party seeking the appointment or election of a receiver,
               conservator, trustee, custodian or similar official for such
               party or any substantial part of its property, or the convening
               of any meeting of creditors for purposes of commencing any such
               case or proceeding or seeking such an appointment or election,
               (ii) the commencement of any such case or proceeding against
               such party, or another seeking such an appointment or election,
               or the filing against a party of an application for a protective
               decree under the provisions of the Securities Investor Protection
               Act of 1970, which (A) is consented to or not timely contested by
               such party, (B) results in the entry of an order for relief, such
               an appointment or election, the issuance of such a protective
               decree or the entry of an order having a similar effect, or (C)
               is not dismissed within 15 days, (iii) the making by such party
               of a general assignment for the benefit of creditors, or (iv) the
               admission in writing by such party of such party's inability to
               pay such party's debts as they become due;

          (b)  "Additional Purchased Securities", Securities provided by Seller
               to Buyer pursuant to Paragraph 4 (a) hereof;

<PAGE>

          (c)  "Buyer's Margin Amount", with respect to any Transaction as of
               any date, the amount obtained by application of the Buyer's
               Margin Percentage to the Repurchase Price for such Transaction as
               of such date;

          (d)  "Buyer's Margin Percentage", with respect to any Transaction as
               of any date, a percentage (which may be equal to the Seller's
               Margin Percentage) agreed to by Buyer and Seller or, in the
               absence of any such agreement, the percentage obtained by
               dividing the Market Value of the Purchased Securities on the
               Purchase Date by the Purchase Price on the Purchase Date for such
               Transaction;

          (e)  "Confirmation" the meaning specified in Paragraph 3(b) hereof;

          (f)  "Income", with respect to any Security at any time, any principal
               thereof and all interest, dividends or other distributions
               thereon;

          (g)  "Margin Deficit", the meaning specified in Paragraph 4 (a)
               hereof;

          (h)  "Margin Excess", the meaning specified in Paragraph 4(b) hereof;

          (i)  "Margin Notice Deadline", the time agreed to by the parties in
               the relevant Confirmation, Annex I hereto or otherwise as the
               deadline for giving notice requiring same-day satisfaction of
               margin maintenance obligations as provided in Paragraph 4 hereof
               (or, in the absence of any such agreement, the deadline for such
               purposes established in accordance with market practice);

          (j)  "Market Value", with respect to any Securities as of any date,
               the price for such Securities on such date obtained from a
               generally recognized source agreed to by the parties or the most
               recent closing bid quotation from such a source, plus accrued
               Income to the extent not included therein (other than any Income
               credited or transferred to, or applied to the obligations of.
               Seller pursuant to Paragraph 5 hereof) as of such date (unless
               contrary to market practice for such Securities);

          (k)  "Price Differential", with respect to any Transaction as of any
               date, the aggregate amount obtained by daily application of the
               Pricing Rate for such Transaction to the Purchase Price for such
               Transaction on a 360 day per year basis for the actual number of
               days during the period commencing on (and including) the
               Purchase Date for such Transaction and ending on (but excluding)
               the date of determination (reduced by any amount of such Price
               Differential previously paid by Seller to Buyer with respect to
               such Transaction);

          (1)  "Pricing Rate", the per annum percentage rate for determination
               of the Price Differential;

          (m)  "Prime Rate", the prime rate of U.S. commercial banks as
               published in The Wall Street Journal (or, if more than one such
               rate is published, the average of such rates);

          (n)  "Purchase Date", the date on which Purchased Securities are to be
               transferred by Seller to Buyer;

2 - September 1996 - Master Repurchase Agreement

<PAGE>

          (o)  "Purchase Price", (i) on the Purchase Date, the price at which
               Purchased Securities are transferred by Seller to Buyer, and (ii)
               thereafter, except where Buyer and Seller agree otherwise, such
               price increased by the amount of any cash transferred by Buyer to
               Seller pursuant to Paragraph 4(b) hereof and decreased by the
               amount of any cash transferred by Seller to Buyer pursuant to
               Paragraph 4 (a) hereof or applied to reduce Seller's obligations
               o under clause (ii) of Paragraph 5 hereof;

          (p)  "Purchased Securities", the Securities transferred by Seller to
               Buyer in a Transaction hereunder, and any Securities
               substituted therefor in accordance with Paragraph 9 hereof. The
               term "Purchased Securities" with respect to any Transaction at
               any time also shall include Additional Purchased Securities
               delivered pursuant to Paragraph 4 (a) hereof and shall exclude
               Securities returned pursuant to Paragraph 4 (b) hereof;

          (q)  "Repurchase Date", the date on which Seller is to repurchase the
               Purchased Securities from Buyer, including any date determined by
               application of the provisions of Paragraph 3 (c) or 11 hereof;

          (r)  "Repurchase Price", the price at which Purchased Securities are
               to be transferred from Buyer to Seller upon termination of a
               Transaction, which will be determined in each case (including
               Transactions terminable upon demand) as the sum of the Purchase
               Price and the Price Differential as of the date of such
               determination;

          (s)  "Seller's Margin Amount", with respect to any Transaction as of
               any date, the amount obtained by application of the Seller's
               Margin Percentage to the Repurchase Price for such Transaction as
               of such date;

          (t)  "Sellers Margin Percentage", with respect to any Transaction as
               of any date, a percentage (which may be equal to the Buyer's
               Margin Percentage) agreed to by Buyer and Seller or, in the
               absence of any such agreement, the percentage obtained by
               dividing the Market Value of the Purchased Securities on the
               Purchase Date by the Purchase Price on the Purchase Date for such
               Transaction.

     3.   INITIATION; CONFIRMATION; TERMINATION

          (a)  An agreement to enter into a Transaction may be made orally or in
               writing at the initiation of either Buyer or Seller. On the
               Purchase Date for the Transaction, the Purchased Securities shall
               be transferred to Buyer or its agent against the transfer of the
               Purchase Price to an account of Seller.

          (b)  Upon agreeing to enter into a Transaction hereunder, Buyer or
               Seller (or both), as shall be agreed, shall promptly deliver to
               the other party a written confirmation of each Transaction (a
               "Confirmation"). The Confirmation shall describe the Purchased
               Securities (including CUSIP number, if any), identify Buyer and
               Seller and set forth (i) the Purchase Date, (ii) the Purchase
               Price, (iii) the Repurchase Date, unless the Transaction is to be
               terminable on demand, (iv) the Pricing Rate or Repurchase Price
               applicable to the Transaction, and (v) any additional terms or
               conditions of the Transaction not inconsistent with this
               Agreement. The Confirmation, together with this Agreement, shall
               constitute conclusive evidence of the terms agreed between Buyer
               and Seller with respect to the Transaction to which the
               Confirmation relates, unless with

                                September 1996 - Master Repurchase Agreement - 3

<PAGE>

               respect to the Confirmation specific objection is made promptly
               after receipt thereof. In the event of any conflict between the
               terms of such Confirmation and this Agreement, this Agreement
               shall prevail.

          (c)  In the case of Transactions terminable upon demand, such demand
               shall be made by Buyer or Seller, no later than such time as is
               customary in accordance with market practice, by telephone or
               otherwise on or prior to the business day on which such
               termination will be effective. On the date specified in such
               demand, or on the date fixed for termination in the case of
               Transactions having a fixed term, termination of the Transaction
               will be effected by transfer to Seller or its agent of the
               Purchased Securities and any Income in respect thereof received
               by Buyer (and not previously credited or transferred to, or
               applied to the obligations of, Seller pursuant to Paragraph 5
               hereof) against the transfer of the Repurchase Price to an
               account of Buyer.

     5.   MARGIN MAINTENANCE

          (a)  If at any time the aggregate Market Value of all Purchased
               Securities subject to all Transactions in which a particular
               party hereto is acting as Buyer is less than the aggregate
               Buyer's Margin Amount for all such Transactions (a "Margin
               Deficit"), then Buyer may by notice to Seller require Seller in
               such Transactions, at Seller's option, to transfer to Buyer cash
               or additional Securities reasonably acceptable to Buyer
               ("Additional Purchased Securities"), so that the cash and
               aggregate Market Value of the Purchased Securities, including any
               such Additional Purchased Securities, will thereupon equal or
               exceed such aggregate Buyer's Margin Amount (decreased by the
               amount of any Margin Deficit as of such date arising from any
               Transactions in which such Buyer is acting as Seller).

          (b)  If at any time the aggregate Market Value of all Purchased
               Securities subject to all Transactions in which a particular
               party hereto is acting as Seller exceeds the aggregate Seller's
               Margin Amount for all such Transactions at such time (a "Margin
               Excess"), then Seller may by notice to Buyer require Buyer in
               such Transactions, at Buyer's option, to transfer cash or
               Purchased Securities to Seller, so that the aggregate Market
               Value of the Purchased Securities, after deduction of any such
               cash or any Purchased Securities so transferred, will thereupon
               not exceed such aggregate Seller's Margin Amount (increased by
               the amount of any Margin Excess as of such date arising from any
               Transactions in which such Seller is acting as Buyer).

          (c)  If any notice is given by Buyer or Seller under subparagraph (a)
               or (b) of this Paragraph at or before the Margin Notice Deadline
               on any business day, the party receiving such notice shall
               transfer cash or Additional Purchased Securities as provided in
               such subparagraph no later than the dose of business in the
               relevant market on such day. If any such notice is given after
               the Margin Notice Deadline, the party receiving such notice shall
               transfer such cash or Securities no later than the close of
               business in the relevant market on the next business day
               following such notice.

          (d)  Any cash transferred pursuant to this Paragraph shall be
               attributed to such Transactions as shall be agreed upon by Buyer
               and Seller.

4 - September 1996 - Master Repurchase Agreement

<PAGE>

          (e)  Seller and Buyer may agree, with respect to any or all
               Transactions hereunder, that the respective rights of Buyer or
               Seller (or both) under subparagraphs (a) and (b) of this
               Paragraph may be exercised only where a Margin Deficit or Margin
               Excess, as the case may be, exceeds a specified dollar amount or
               a specified percentage of the Repurchase Prices for such
               Transactions (which amount or percentage shall be agreed to by
               Buyer and Seller prior to entering into any such Transactions).

          (f)  Seller and Buyer may agree, with respect to any or all
               Transactions hereunder, that the respective rights of Buyer and
               Seller under subparagraphs (a) and (b) of this Paragraph to
               require the elimination of a Margin Deficit or a Margin Excess,
               as the case may be, may be exercised whenever such a Margin
               Deficit or Margin Excess exists with respect to any single
               Transaction hereunder (calculated without regard to any other
               Transaction outstanding under this Agreement).

     6.   INCOME PAYMENTS

          Seller shall be entitled to receive an amount equal to all Income paid
          or distributed on or in respect of the Securities that is not
          otherwise received by Seller, to the full extent it would be so
          entitled if the Securities had not been sold to Buyer. Buyer shall, as
          the parties may agree with respect to any Transaction (or, in the
          absence of any such agreement, as Buyer shall reasonably determine
          in its discretion), on the date such Income is paid or distributed
          either (i) transfer to or credit to the account of Seller such Income
          with respect to any Purchased Securities subject to such Transaction
          or (ii) with respect to Income paid in cash, apply the Income payment
          or payments to reduce the amount, if any, to be transferred to Buyer
          by Seller upon termination of such Transaction. Buyer shall not be
          obligated to take any action pursuant to the preceding sentence (A) to
          the extent that such action would result in the creation of a Margin
          Deficit, unless prior thereto or simultaneously therewith Seller
          transfers to Buyer cash or Additional Purchased Securities sufficient
          to eliminate such Margin Deficit, or (B) if an Event of Default with
          respect to Seller has occurred and is then continuing at the time such
          Income is paid or distributed.

     6.   SECURITY INTEREST

          Although the parties intend that all Transactions hereunder be sales
          and purchases and not loans, in the event any such Transactions are
          deemed to be loans, Seller shall be deemed to have pledged to Buyer as
          security for the performance by Seller of its obligations under each
          such Transaction, and shall be deemed to have granted to Buyer a
          security interest in, all of the Purchased Securities with respect to
          all Transactions hereunder and all Income thereon and other proceeds
          thereof.

     7.   PAYMENT AND TRANSFER

          Unless otherwise mutually agreed, all transfers of funds hereunder
          shall be in immediately available funds. All Securities transferred by
          one party hereto to the other party (i) shall be in suitable form for
          transfer or shall be accompanied by duly executed instruments of
          transfer or assignment in blank and such other documentation as the
          party receiving possession may reasonably request, (ii) shall be
          transferred on the book-entry system of a Federal Reserve Bank, or
          (iii) shall be transferred by any other method mutually acceptable to
          Seller and Buyer.

                                September 1996 - Master Repurchase Agreement - 5

<PAGE>

     8.   SEGREGATION OF PURCHASED SECURITIES

          To the extent required by applicable law, all Purchased Securities in
          the possession of Seller shall be segregated from other securities in
          its possession and shall be identified as subject to this Agreement.
          Segregation may be accomplished by appropriate identification on the
          books and records of the holder, including a financial or securities
          intermediary or a clearing corporation. All of Seller's interest in
          the Purchased Securities shall pass to Buyer on the Purchase Date and,
          unless otherwise agreed by Buyer and Seller, nothing in this Agreement
          shall preclude Buyer from engaging in repurchase transactions with the
          Purchased Securities or otherwise selling, transferring, pledging or
          hypothecating the Purchased Securities, but no such transaction shall
          relieve Buyer of its obligations to transfer Purchased Securities to
          Seller pursuant to Paragraph 3,4 or 11 hereof, or of Buyer's
          obligation to credit or pay Income to, or apply Income to the
          obligations of, Seller pursuant to Paragraph 5 hereof.

               REQUIRED DISCLOSURE FOR TRANSACTIONS IN WHICH THE SELLER
               RETAINS CUSTODY OF THE PURCHASED SECURITIES

               Seller is not permitted to substitute other securities for those
               subject to this Agreement and therefore must keep Buyer's
               securities segregated at all times, unless in this Agreement
               Buyer grants Seller the right to substitute other securities. If
               Buyer grants the right to substitute, this means that Buyer's
               securities will likely be commingled with Seller's own securities
               during the trading day. Buyer is advised that, during any trading
               day that Buyer's securities are commingled with Seller's
               securities, they [will]* [may]** be subject to liens granted by
               Seller to [its clearing bank]* [third parties]** and may be used
               by Seller for deliveries on other securities transactions.
               Whenever the securities are commingled, Seller's ability to
               resegregate substitute securities for Buyer will be subject to
               Seller's ability to satisfy [the clearing]* [any]** lien or to
               obtain substitute securities.

               * Language to be used under 17 C.F.R. (ss)403.4(e) if Seller is
               a government securities broker or dealer other than a financial
               institution.

               ** Language to be used under 17 C.F.R. (ss)403.5(d) if Seller is
               a financial institution.

     9.   SUBSTITUTION

          (a)  Seller may, subject to agreement with and acceptance by Buyer,
               substitute other Securities for any Purchased Securities. Such
               substitution shall be made by transfer to Buyer of such other
               Securities and transfer to Seller of such Purchased Securities.
               After substitution, the substituted Securities shall be deemed to
               be Purchased Securities.

          (b)  In Transactions in which Seller retains custody of Purchased
               Securities, the parties expressly agree that Buyer shall be
               deemed, for purposes of subparagraph (a) of this Paragraph, to
               have agreed to and accepted in this Agreement substitution by
               Seller of other Securities for Purchased Securities; provided,
               however, that such other Securities shall have a Market Value at
               least equal to the Market Value of the Purchased Securities for
               which they are substituted.

6 - September 1996 - Master Repurchase Agreement
<PAGE>

     10.  REPRESENTATIONS

          Each of Buyer and Seller represents and warrants to the other that (i)
          it is duly authorized to execute and deliver this Agreement, to enter
          into Transactions contemplated hereunder and to perform its
          obligations hereunder and has taken all necessary action to authorize
          such execution, delivery and performance, (ii) it will engage in
          such Transactions as principal (or, if agreed in writing, in the form
          of an annex hereto or otherwise, in advance of any Transaction by the
          other party hereto, as agent for a disclosed principal), (iii) the
          person signing this Agreement on its behalf is duly authorized to do
          so on its behalf (or on behalf of any such disclosed principal), (iv)
          it has obtained all authorizations of any governmental body required
          in connection with this Agreement and the Transactions hereunder and
          such authorizations are in full force and effect and (v) the
          execution, delivery and performance of this Agreement and the
          Transactions hereunder will not violate any law, ordinance, charter,
          bylaw or rule applicable to it or any agreement by which it is bound
          or by which any of its assets are affected. On the Purchase Date for
          any Transaction Buyer and Seller shall each be deemed to repeat all
          the foregoing representations made by it.

     11.  EVENTS OF DEFAULT

          In the event that (i) Seller fails to transfer or Buyer fails to
          purchase Purchased Securities upon the applicable Purchase Date, (ii)
          Seller fails to repurchase or Buyer fails to transfer Purchased
          Securities upon the applicable Repurchase Date, (iii) Seller or Buyer
          fails to comply with Paragraph 4 hereof, (iv) Buyer fails, after one
          business day's notice, to comply with Paragraph 5 hereof, (v) an Act
          of Insolvency occurs with respect to Seller or Buyer, (vi) any
          representation made by Seller or Buyer shall have been incorrect or
          untrue in any material respect when made or repeated or deemed to have
          been made or repeated, or (vii) Seller or Buyer shall admit to the
          other its inability to, or its intention not to, perform any of its
          obligations hereunder (each an "Event of Default"):

          (a)  The nondefaulting party may, at its option (which option shall be
               deemed to have been exercised immediately upon the occurrence of
               an Act of Insolvency), declare an Event of Default to have
               occurred hereunder and, upon the exercise or deemed exercise of
               such option, the Repurchase Date for each Transaction hereunder
               shall, if it has not already occurred, be deemed immediately to
               occur (except that, in the event that the Purchase Date for any
               Transaction has not yet occurred as of the date of such exercise
               or deemed exercise, such Transaction shall be deemed immediately
               canceled). The nondefaulting party shall (except upon the
               occurrence of an Act of Insolvency) give notice to the defaulting
               party of the exercise of such option as promptly as practicable.

          (b)  In all Transactions in which the defaulting party is acting as
               Seller, if the nondefaulting party exercises or is deemed to have
               exercised the option referred to in subparagraph (a) of this
               Paragraph, (i) the defaulting party's obligations in such
               Transactions to repurchase all Purchased Securities, at the
               Repurchase Price therefor on the Repurchase Date determined in
               accordance with subparagraph (a) of this Paragraph, shall
               thereupon become immediately due and payable, (ii) all Income
               paid after such exercise or deemed exercise shall be retained by
               the nondefaulting party and applied to the aggregate unpaid
               Repurchase Prices and any other amounts owing by the defaulting
               party hereunder, and (iii) the defaulting party shall immediately
               deliver to the nondefaulting party any Purchased Securities
               subject to such Transactions then in the defaulting party's
               possession or control.

                                September 1996 - Master Repurchase Agreement - 7

<PAGE>

          (c)  In all Transactions in which the defaulting party is acting as
               Buyer, upon tender by the nondefaulting party of payment of the
               aggregate Repurchase Prices for all such Transactions, all right,
               title and interest in and entitlement to all Purchased Securities
               subject to such Transactions shall be deemed transferred to the
               nondefaulting party, and the defaulting party shall deliver all
               such Purchased Securities to the nondefaulting party.

          (d)  If the nondefaulting party exercises or is deemed to have
               exercised the option referred to in subparagraph (a) of this
               Paragraph, the nondefaulting party, without prior notice to the
               defaulting party, may:

               (i)  as to Transactions in which the defaulting party is acting
                    as Seller, (A) immediately sell, in a recognized market (or
                    otherwise in a commercially reasonable manner) at such price
                    or prices as the nondefaulting party may reasonably deem
                    satisfactory, any or all Purchased Securities subject to
                    such Transactions and apply the proceeds thereof to the
                    aggregate unpaid Repurchase Prices and any other amounts
                    owing by the defaulting party hereunder or (B) in its sole
                    discretion elect, in lieu of selling all or a portion of
                    such Purchased Securities, to give the defaulting party
                    credit for such Purchased Securities in an amount equal to
                    the price therefor on such date, obtained from a generally
                    recognized source or the most recent closing bid quotation
                    from such a source, against the aggregate unpaid Repurchase
                    Prices and any other amounts owing by the defaulting party
                    hereunder; and

               (ii) as to Transactions in which the defaulting party is acting
                    as Buyer, (A) immediately purchase, in a recognized market
                    (or otherwise in a commercially reasonable manner) at such
                    price or prices as the nondefaulting party may reasonably
                    deem satisfactory, securities ("Replacement Securities")
                    of the same class and amount as any Purchased Securities
                    that are not delivered by the defaulting party to the
                    nondefaulting party as required hereunder or (B) in its
                    sole discretion elect, in lieu of purchasing Replacement
                    Securities, to be deemed to have purchased Replacement
                    Securities at the price therefor on such date, obtained from
                    a generally recognized source or the most recent closing
                    offer quotation from such a source.

               Unless otherwise provided in Annex I, the parties acknowledge and
               agree that (1) the Securities subject to any Transaction
               hereunder are instruments traded in a recognized market, (2) in
               the absence of a generally recognized source for prices or bid or
               offer quotations for any Security, the nondefaulting party may
               establish the source therefor in its sole discretion and (3) all
               prices, bids and offers shall be determined together with accrued
               Income (except to the extent contrary to market practice with
               respect to the relevant Securities).

          (e)  As to Transactions in which the defaulting party is acting as
               Buyer, the defaulting party shall be liable to the nondefaulting
               party for any excess of the price paid (or deemed paid) by the
               nondefaulting party for Replacement Securities over the
               Repurchase Price for the Purchased Securities replaced thereby
               and for any amounts payable by the defaulting party under
               Paragraph 5 hereof or otherwise hereunder.

          (f)  For purposes of this Paragraph 11, the Repurchase Price for each
               Transaction hereunder in respect of which the defaulting party is
               acting as Buyer shall not increase above the

8 - September 1996 - Master Repurchase Agreement

<PAGE>

               amount of such Repurchase Price for such Transaction determined
               as of the date of the exercise or deemed exercise by the
               nondefaulting party of the option referred to in subparagraph
               (a) of this Paragraph.

          (g)  The defaulting party shall be liable to the nondefaulting party
               for (i) the amount of all reasonable legal or other expenses
               incurred by the nondefaulting party in connection with or as a
               result of an Event of Default, (ii) damages in an amount equal to
               the cost (including all fees, expenses and commissions) of
               entering into replacement transactions and entering into or
               terminating hedge transactions in connection with or as a result
               of an Event of Default, and (iii) any other loss, damage, cost or
               expense directly arising or resulting from the occurrence of an
               Event of Default in respect of a Transaction.

          (h)  To the extent permitted by applicable law, the defaulting party
               shall be liable to the nondefaulting party for interest on any
               amounts owing by the defaulting party hereunder, from the date
               the defaulting party becomes liable for such amounts hereunder
               until such amounts are (i) paid in full by the defaulting party
               or (ii) satisfied in full by the exercise of the nondefaulting
               party's rights hereunder. Interest on any sum payable by the
               defaulting party to the nondefaulting party under this
               Paragraph 11(h) shall be at a rate equal to the greater of the
               Pricing Rate for the relevant Transaction or the Prime Rate.

          (i)  The nondefaulting party shall have, in addition to its rights
               hereunder, any rights otherwise available to it under any other
               agreement or applicable law.

     12.  SINGLE AGREEMENT

          Buyer and Seller acknowledge that, and have entered hereinto and will
          enter into each Transaction hereunder in consideration of and in
          reliance upon the fact that, all Transactions hereunder constitute a
          single business and contractual relationship and have been made in
          consideration of each other. Accordingly, each of Buyer and Seller
          agrees (i) to perform all of its obligations in respect of each
          Transaction hereunder, and that a default in the performance of any
          such obligations shall constitute a default by it in respect of all
          Transactions hereunder, (ii) that each of them shall be entitled to
          set off claims and apply property held by them in respect of any
          Transaction against obligations owing to them in respect of any other
          Transactions hereunder and (iii) that payments, deliveries and other
          transfers made by either of them in respect of any Transaction shall
          be deemed to have been made in consideration of payments, deliveries
          and other transfers in respect of any other Transactions hereunder,
          and the obligations to make any such payments, deliveries and other
          transfers may be applied against each other and netted.

     13.  NOTICES AND OTHER COMMUNICATIONS

          Any and all notices, statements, demands or other communications
          hereunder may be given by a party to the other by mail, facsimile,
          telegraph, messenger or otherwise to the address specified in Annex II
          hereto, or so sent to such party at any other place specified in a
          notice of change of address hereafter received by the other. All
          notices, demands and requests hereunder may be made orally, to be
          confirmed promptly in writing, or by other communication as specified
          in the preceding sentence.

                                September 1996 - Master Repurchase Agreement - 9

<PAGE>

     14.  ENTIRE AGREEMENT; SEVERABILITY

          This Agreement shall supersede any existing agreements between the
          parties containing general terms and conditions for repurchase
          transactions. Each provision and agreement herein shall be treated as
          separate and independent from any other provision or agreement herein
          and shall be enforceable notwithstanding the unenforceability of any
          such other provision or agreement.

     15.  NON-ASSIGNABILITY; TERMINATION

          (a)  The rights and obligations of the parties under this Agreement
               and under any Transaction shall not be assigned by either party
               without the prior written consent of the other party, and any
               such assignment without the prior written consent of the other
               party shall be null and void. Subject to the foregoing, this
               Agreement and any Transactions shall be binding upon and shall
               inure to the benefit of the parties and their respective
               successors and assigns. This Agreement may be terminated by
               either party upon giving written notice to the other, except that
               this Agreement shall, notwithstanding such notice, remain
               applicable to any Transactions then outstanding.

          (b)  Subparagraph (a) of this Paragraph 15 shall not preclude a party
               from assigning, charging or otherwise dealing with all or any
               part of its interest in any sum payable to it under Paragraph 11
               hereof.

     16.  GOVERNING LAW

          This Agreement shall be governed by the laws of the State of New York
          without giving effect to the conflict of law principles thereof.

     17.  NO WAIVERS, ETC.

          No express or implied waiver of any Event of Default by either party
          shall constitute a waiver of any other Event of Default and no
          exercise of any remedy hereunder by any party shall constitute a
          waiver of its right to exercise any other remedy hereunder. No
          modification or waiver of any provision of this Agreement and no
          consent by any party to a departure herefrom shall be effective
          unless and until such shall be in writing and duly executed by both of
          the parties hereto. Without limitation on any of the foregoing, the
          failure to give a notice pursuant to Paragraph 4(a) or 4(b) hereof
          will not constitute a waiver of any right to do so at a later date.

     18.  USE OF EMPLOYEE PLAN ASSETS

          (a)  If assets of an employee benefit plan subject to any provision of
               the Employee Retirement Income Security Act of 1974 ("ERISA") are
               intended to be used by either party hereto (the "Plan Party") in
               a Transaction, the Plan Party shall so notify the other party
               prior to the Transaction. The Plan Party shall represent in
               writing to the other party that the Transaction does not
               constitute a prohibited transaction under ERISA or is otherwise
               exempt therefrom, and the other party may proceed in reliance
               thereon but shall not be required so to proceed.

10 - September 1996 - Master Repurchase Agreement

<PAGE>

          (b)  Subject to the last sentence of subparagraph (a) of this
               Paragraph, any such Transaction shall proceed only if Seller
               furnishes or has furnished to Buyer its most recent available
               audited statement of its financial condition and its most recent
               subsequent unaudited statement of its financial condition.

          (c)  By entering into a Transaction pursuant to this Paragraph, Seller
               shall be deemed (i) to represent to Buyer that since the date of
               Seller's latest such financial statements, there has been no
               material adverse change in Seller's financial condition which
               Seller has not disclosed to Buyer, and (ii) to agree to provide
               Buyer with future audited and unaudited statements of its
               financial condition as they are issued, so long as it is a Seller
               in any outstanding Transaction involving a Plan Party.

     19.  INTENT

          (a)  The parties recognize that each Transaction is a "repurchase
               agreement" as that term is defined in Section 101 of Title 11 of
               the United States Code, as amended (except insofar as the type of
               Securities subject to such Transaction or the term of such
               Transaction would render such definition inapplicable), and a
               "securities contract" as that term is defined in Section 741 of
               Title 11 of the United States Code, as amended (except insofar as
               the type of assets subject to such Transaction would render such
               definition inapplicable).

          (b)  It is understood that either party's right to liquidate
               Securities delivered to it in connection with Transactions
               hereunder or to exercise any other remedies pursuant to Paragraph
               11 hereof is a contractual right to liquidate such Transaction as
               described in Sections 555 and 559 of Title 11 of the United
               States Code, as amended.

          (c)  The parties agree and acknowledge that if a party hereto is an
               "insured depository institution," as such term is defined in
               the Federal Deposit Insurance Act, as amended ("FDIA"), then each
               Transaction hereunder is a "qualified financial contract," as
               that term is defined in FDIA and any rules, orders or policy
               statements thereunder (except insofar as the type of assets
               subject to such Transaction would render such definition
               inapplicable).

          (d)  It is understood that this Agreement constitutes a "netting
               contract" as defined in and subject to Title IV of the Federal
               Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA")
               and each payment entitlement and payment obligation under any
               Transaction hereunder shall constitute a "covered contractual
               payment entitlement" or "covered contractual payment obligation",
               respectively, as defined in and subject to FDICIA (except
               insofar as one or both of the parties is not a "financial
               institution" as that term is defined in FDICIA).

     20.  DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

          The parties acknowledge that they have been advised that:

          (a)  in the case of Transactions in which one of the parties is a
               broker or dealer registered with the Securities and Exchange
               Commission ("SEC") under Section 15 of the Securities Exchange
               Act of 1934 ("1934 Act"), the Securities Investor Protection
               Corporation has

                               September 1996 - Master Repurchase Agreement - 11

<PAGE>

               taken the position that the provisions of the Securities Investor
               Protection Act of 1970 ("SIPA") do not protect the other party
               with respect to any Transaction hereunder;

          (b)  in the case of Transactions in which one of the parties is a
               government securities broker or a government securities dealer
               registered with the SEC under Section 15C of the 1934 Act, SIPA
               will not provide protection to the other party with respect to
               any Transaction hereunder; and

          (c)  in the case of Transactions in which one of the parties is a
               financial institution, funds held by the financial institution
               pursuant to a Transaction hereunder are not a deposit and
               therefore are not insured by the Federal Deposit Insurance
               Corporation or the National Credit Union Share Insurance Fund, as
               applicable.

     PULTE MORTGAGE CORPORATION,  as            PULTE FUNDING,  INC.,  as Buyer
     [Name of Party]         Seller             [Name of Party]

     By: /s/ David M. Bruining                  By: /s/ David M. Bruining
         ------------------------                   ---------------------------
     Title: SVP/CFO                             Title: VP/CFO
     Date: December 22, 2000                    Date: December 22, 2000

12 - September 1996 - Master Repurchase Agreement

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