Document:

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                                                                   EXHIBIT 10.14

                           MASTER REPURCHASE AGREEMENT

                                                   Dated as of November 18, 2002

BETWEEN:

NOMURA CREDIT & CAPITAL, INC., as buyer ("Buyer", which term shall include any
"Principal" as defined and provided for in Annex I), or as agent pursuant hereto
("Agent")

      and

ARBOR COMMERCIAL MORTGAGE, LLC, as seller ("Seller").

1.    APPLICABILITY.

      Buyer may, from time to time, agree to enter into transactions in which
      Seller transfers to Buyer Purchased Assets against the transfer of funds
      by Buyer, with a simultaneous agreement by Buyer to transfer to Seller
      such Purchased Assets at a date certain, against the transfer of finds 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.

2.    DEFINITIONS AND INTERPRETATION.

a.    Defined Terms.

      "Additional Purchased Assets" shall have the meaning assigned thereto in
Paragraph 6(a) hereof.

      "Adjusted LIBOR" shall mean with respect to any period a rate per annum
determined by Buyer in accordance with the following formula:

                                      LIBOR

                     1.00 - Eurocurrency Reserve Requirement

      "Affiliate" means, with respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting equity, by contract or otherwise.

      "Agent" means Nomura Credit & Capital, Inc. or any successor.

      "Agreement" means this Master Repurchase Agreement, as it may be amended,
supplemented or otherwise modified from time to time.
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      "Bridge Loan" has the meaning given to it in Appendix A of the Custodial
Agreement.

      "Business Day" means any day other than (i) a Saturday or Sunday or (ii) a
public or bank holiday in New York City.

      "Buyer's Margin Amount" means, with respect to any Transaction as of any
date of determination, the amount obtained by application of the Buyer's Margin
Percentage to the Repurchase Price for such Transaction as of such date.

      "Buyer's Margin Percentage" means, with respect to any Transaction as of
any date of determination, a percentage agreed to by Buyer and Seller as set
forth in the related Confirmation, or, in the absence of any such agreement, the
percentage obtained by dividing the Market Value of the Purchased Assets on the
Purchase Date by the Purchase Price on the Purchase Date for such Transaction.

      "Code" shall mean the Internal Revenue Code of 1986, as amended.

      "Collateral" shall have the meaning assigned thereto in Paragraph 8
hereof.

      "Collateral Receipt" means a document duly executed by Seller with respect
to each delivery of documents relating to the Purchased Assets to Custodian in
the form attached to the Custodial Agreement.

      "Computer Tape" means a computer tape or other electronic medium generated
by Seller and delivered to Buyer and Custodian which provides information
relating to the Purchased Assets, including the information set forth in the
Loan Schedule, in a format acceptable to Buyer.

      "Confirmation" shall have the meaning assigned thereto in Paragraph 4(b)
hereof.

      "Custodian" means the entity acting as bailee of or agent for Buyer with
respect to any item of a Purchased Asset.

      "Custodial Agreement" means the Custody Agreement dated as of November 1,
2002, as amended, supplemented or otherwise modified from time to time, among
Seller, Buyer and Custodian, with respect to any Purchased Asset.

      "Custodian's Loan File" shall have the meaning assigned thereto or to
"Loan File" in the Custodial Agreement.

      "Default" means any event, that, with the giving of notice or the passage
of time or both, would constitute an Event of Default.

      "Default Rate" means, as of any date of determination, the Prime Rate as
quoted in the Wall Street Journal plus 2%.

      "Effective Date" means November 18, 2002.

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      "Eurocurrency Reserve Requirement" shall mean, for any day as applied to a
Transaction, the aggregate (without duplication) of the rates (expressed as a
decimal fraction) of reserve requirements applicable to the Buyer and in effect
on such day (including without limitation basic, supplemental, marginal and
emergency reserves under any regulations of the Board of Governors of the
Federal Reserve System or other Governmental Authority having jurisdiction with
respect thereto), dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as "Eurocurrency Liabilities in Regulation D of
such Board) maintained by a member bank of such Governmental Authority.

      "Event of Default" shall have the meaning assigned thereto in Paragraph 18
hereof.

      "Final Repurchase Date" shall have the meaning assigned thereto in
Paragraph 3 hereof.

      "GAAP" shall mean generally accepted accounting principles in the United
States of America in effect from time to time.

      "Governmental Authority" shall mean any nation or government, any state or
other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions over Seller.

      "Guarantee" means, as to any Person, any obligation of such Person
directly or indirectly guaranteeing any Indebtedness of any other Person or in
any manner providing for the payment of any Indebtedness of any other Person.

      "Income" means, with respect to any Purchased Asset at any time, any
principal thereof then payable and all interest, dividends or other
distributions thereon.

      "Indebtedness" shall mean, for any Person: (a) all obligations (other than
nonrecourse obligations) for borrowed money; (b) obligations (other than
nonrecourse obligations) of such Person to pay the deferred purchase or
acquisition price of Property or services, other than trade accounts payable
(other than for borrowed money) arising and accrued expenses incurred, in the
ordinary course of business so long as such trade accounts payable are payable
within ninety (90) days of the date the respective goods are delivered or the
respective services are rendered; (c) Indebtedness of others secured by a lien
on the Property of such Person, whether or not the respective Indebtedness so
secured has been assumed by such Person; (d) obligations (contingent or
otherwise) of such Person (other than nonrecourse obligations) in respect of
letters of credit or similar instruments issued for account of such Person; (e)
capital lease obligations (other than nonrecourse obligations) of such Person;
(f) obligations (other than nonrecourse obligations) of such Person under
repurchase agreements or like arrangements; (g) Indebtedness of others
Guaranteed on a recourse basis by such Person; (h) all obligations (other than
nonrecourse obligations) of such Person incurred in connection with the
acquisition or carrying of fixed assets by such Person; and (i) Indebtedness of
general partnerships of which such Person is a general partner.

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      "Investment Company Act" means the Investment Company Act of 1940, as
amended, including all rules and regulations promulgated thereunder.

      "LIBOR" shall mean the applicable 30-day London Inter-Bank Offered Rate
for United States dollars as determined by Buyer from time to time based on page
12 of telerate at 10:00 am. (New York time) two (2) Business Days prior to each
Purchase Date.

      "Loan" means either (i) a commercial or multifamily mortgage Bridge Loan,
commercial or multifamily Mezzanine Loan or any Note Acquisition by Seller, each
as described in Appendix A to the Custodial Agreement (as amended with respect
to any such loan or note), (ii) such other type of loan, lease or other
receivable as shall be agreed upon by the parties as evidenced by Appendix A to
the Custodial Agreement, as amended or supplemented by mutual agreement of the
parties, or (iii) each of the Mezzobridge Assets.

      "Loan Disposition" means the closing of a final sale or other transfer of
a Loan by the Seller in connection with a securitization or otherwise.

      "Loan Note" means, with respect to any Loan, the note together with all
riders thereto and amendments thereof or other evidence of indebtedness.

      "Loan Schedule" means a list of Loans by Loan Type attached to the Trust
Receipt and setting forth as to each Loan the information specified by Buyer.

      "Loan Type" means the categorization of a Loan on a Computer Tape and
otherwise as a Mezzanine Loan, a Bridge Loan or a Note Acquisition.

      "Lockbox Bank" means each entity acting as a lockbox bank maintaining an
account on behalf of the Buyer pursuant to the Lockbox Agreement.

      "Lockbox Agreement" means the agreement Demand Deposits Account Agreement
among the Seller, the Buyer and the Lockbox Bank dated August 20, 2001.

      "LTV" means the ratio of the outstanding principal balance of a Loan to
the appraised value of the related secured property or collateral, if
applicable, on the date of determination.

      "Margin Call" As defined in Section 6(a).

      "Margin Deficit" shall have the meaning assigned thereto in Paragraph 6(a)
hereof.

      "Market Value" means, as of any date with respect to any Purchased Asset,
the price at which such Purchased Asset could readily be sold as determined by
the Buyer in its good faith sole discretion. For the purposes of the foregoing
the Purchaser may take into account prevailing market conditions and the
financial condition of the Seller.

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      "Material Adverse Change" means, with respect to a Person, any material
adverse change in the business, condition (financial or otherwise), operations,
performance, properties or prospects of such Person.

      "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, condition
(financial or otherwise) or prospects of the Seller or the Seller and its
Affiliates taken as a whole; (b) a material impairment of the ability of the
Seller or any Affiliate to perform under any Program Document and to avoid any
Event of Default; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against the Seller or any Affiliate of any
Program Document.

      "Mezzanine Loan" has the meaning given to it in Appendix A of the
Custodial Agreement.

      "Mezzobridge Assets" means the Loans identified on the Mezzobridge
Schedule.

      "Mezzobridge Schedule" means the Schedule attached hereto as Schedule [A],
setting forth the list of Loans which are in the circumstances set forth herein
eligible for inclusion in Transactions hereunder under the terms and conditions
set forth herein and therein.

      "Mortgage" means a mortgage, deed of trust, or other instrument which
creates a lien on a fee simple or leasehold interest in real property and
secures a Loan Note.

      "Netting Agreement" means the Master Collateral Security and Netting
Agreement dated as of Effective Date among the Buyer and certain Affiliates and
Seller.

      "Note Acquisition" has the meaning given to it in Appendix A of the
Custodial Agreement.

      "Notice Date" shall have the meaning assigned thereto in Paragraph 4
hereof.

      "Obligations" means (a) all of Seller's indebtedness, obligation to pay
the Repurchase Price on the Repurchase Date, and other obligations and
liabilities, to Buyer, its affiliates or Custodian arising under, or in
connection with, the Program Documents, whether now existing or hereafter
arising (b) any and all sums paid by Buyer or on behalf of Buyer in order to
preserve any Purchased Asset or its interest therein; (c) in the event of any
proceeding for the collection or enforcement of any of Seller's indebtedness,
obligations or liabilities referred to in clause (a), the reasonable expenses of
retaking, holding, collecting, preparing for sale, selling or otherwise
disposing of or realizing on any Purchased Asset, or of any exercise by Buyer of
its rights under the Program Documents, including without limitation, attorneys'
fees and disbursements and court costs; and (d) all of Seller indemnity
obligations to Buyer or Custodian or both pursuant to the Program Documents.

      "Obligor" means the obligor on a Loan, including any guarantor of the
obligation thereunder.

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      "Person" shall mean any legal person, including any individual,
corporation, partnership, association, joint-stock company, trust, limited
liability company, unincorporated organization, governmental entity or other
entity of similar nature.

      "Position Report" means the report defined as such in the related
Custodial Agreement.

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

      "Pricing Rate" means the per annum percentage rate for determination of
the Price Differential.

      "Prime Rate" means the daily prime loan rate as reported in The Wall
Street Journal.

      "Principal" shall have the meaning given to it in Annex I.

      "Program Documents" means this Agreement, each Custodial Agreement, any
Servicing Agreement, the Lockbox Agreement, the Netting Agreement, any
Securities Account Control Agreement, the Limited Liability Company Agreement of
and constituting the Seller and any other agreement entered into by Seller and
Buyer in connection therewith.

      "Property" means any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

      "Purchase Date" means the date on which Purchased Assets are to be
transferred by Seller to Buyer.

      "Purchase Price" means the price at which Purchased Assets are transferred
by Seller to Buyer in a Transaction, which shall (unless otherwise agreed) be
equal to the applicable Purchase Price Percentage times the lesser of (i) the
Market Value of the related Purchased Assets and (ii) the outstanding principal
balance of the related Purchased Assets.

      "Purchase Price Percentage" means (a) with respect to Bridge Loans, 80%
and (b) with respect to Mezzanine Loans, 65%; provided, however, that with
respect to Mezzobridge Assets, the applicable Purchase Price Percentage shall be
the percentage designated on the Mezzobridge Schedule.

      "Purchased Assets" means, with respect to a Transaction, the related
Loans, together with the related Records, Servicing Rights, Take-Out
Commitments, if any, the Seller's rights under any agreement intended to hedge
or reduce the risk of movements in

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interest rates, and other Collateral, and such other property, rights, titles or
interests as are specified on a related Transaction Notice or Position Report.
The term "Purchased Assets" with respect to any Transaction at any time also
shall include Additional Purchased Assets delivered pursuant to Paragraph 6(a)
hereof.

      "Records" means all instruments, agreements and other books, records, and
other media for the storage of information maintained by Seller or any other
person or entity with respect to a Purchased Asset. Records shall include the
Loan Notes, any Mortgages and any other instruments necessary to document or
service a Loan.

      "Repurchase Date" shall have the meaning assigned thereto in Paragraph
3(b) and shall also include the date determined by application of Paragraph 19.

      "Repurchase Price" means the price at which Purchased Assets 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.

      "Securities Account Control Agreement" means an agreement to be entered
into among Seller, a financial intermediary and Agent in the event that interest
rate risk with respect to a Purchased Asset is hedged with such intermediary.

      "Servicing Agreement" means any agreement (other than the Custodial
Agreement) giving rise or relating to Servicing Rights with respect to a
Purchased Asset, including any assignment or other agreement relating to such
agreement.

      "Servicing Rights" means contractual, possessory or other rights of Seller
or any other Person arising under a Servicing Agreement, Custodial Agreement or
otherwise, to administer or service a Purchased Asset or to possess related
Records.

      "Subsidiary" means, with respect to any Person, any corporation,
partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other
class or classes of such corporation, partnership or other entity shall have or
might have voting power by reason of the happening of any contingency) is at the
time directly or indirectly owned or controlled by such Person or one or more
Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person.

      "Substitute Securities" has the meaning assigned thereto in Paragraph
16(a).

      "Take-out Commitment" means, with respect to any Loan, an irrevocable
commitment issued by a purchaser approved by Buyer in favor of the applicable
originator, pursuant to which such approved purchaser agrees to purchase such
than at a specific price.

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      "Termination Date" has the meaning assigned thereto in Paragraph 3(b).

      "Transaction Notice" has the meaning assigned thereto in the Custodial
Agreement.

      "Trust Receipt" means an Initial Trust Receipt or a Trust Receipt as
defined in the related Custodial Agreement.

      "Underlying Guidelines" means the standards, procedures and guidelines of
Seller for underwriting or for originating Loans of the applicable Loan Type,
which are to be submitted by Seller to, and approved by, Buyer.

      "Uniform Commercial Code" means the Uniform Commercial Code as in effect
on the date hereof in the State of New York or the Uniform Commercial Code as in
effect in the applicable jurisdiction.

      b.    Interpretation. Headings are for convenience only and do not affect
            interpretation. The following rules of this subparagraph (b) apply
            unless the context requires otherwise. The singular includes the
            plural and conversely. A gender includes all genders. Where a word
            or phrase is defined, its other grammatical forms have a
            corresponding meaning. A reference to a Paragraph, Annex or Exhibit
            is a reference to a paragraph of, or annex or exhibit to, this
            Agreement. A reference to a party to this Agreement or another
            agreement or document includes the party's successors and permitted
            substitutes or assigns. A reference to an agreement or document is
            to the agreement or document as amended, novated, supplemented or
            replaced, except to the extent prohibited by any Program Document. A
            reference to legislation or to a provision of legislation includes a
            modification or re-enactment of it, a legislative provision
            substituted for it and a regulation or statutory instrument issued
            under it. A reference to writing includes a facsimile transmission
            and any means of reproducing words in a tangible and permanently
            visible form. A reference to conduct includes, without limitation,
            an omission, statement or undertaking, whether or not in writing. An
            Event of Default subsists until it has been waived in writing by the
            Buyer or has been timely cured. The words "hereof', "herein",
            "hereunder" and similar words refer to this Agreement as a whole and
            not to any particular provision of this Agreement; and subparagraph,
            Paragraph, Annex and Exhibit references are to this Agreement unless
            otherwise specified. The term "including" is not limiting and means
            "including without limitation." In the computation of periods of
            time from a specified date to a later specified date, the word
            "from" means "from and including"; the words "to" and "until" each
            mean "to but excluding", and the word "through" means "to and
            including" This Agreement may use several different limitations,
            tests or measurements to regulate the same or similar matters. All
            such limitations, tests and measurements are cumulative and shall
            each be performed in accordance with their terms. Unless the context
            otherwise clearly requires, all

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            accounting terms not expressly defined herein shall be construed,
            and all financial computations required under this Agreement shall
            be made, in accordance with GAAP, consistently applied. References
            herein to "fiscal year" and "fiscal quarter" refer to such fiscal
            periods of the Seller. Except where otherwise provided in this
            Agreement any determination, statement or certificate by the Buyer
            or an authorized officer of the Buyer provided for in this Agreement
            is conclusive and binds the parties in the absence of manifest
            error. A reference to an agreement includes a security interest,
            guarantee, agreement or legally enforceable arrangement whether or
            not in writing A reference to a document includes an agreement (as
            so defined) in writing or a certificate, notice, instrument or
            document, or any information recorded in computer disk form. Where
            the Seller is required to provide any document to the Buyer under
            the terms of this Agreement, the relevant document shall be provided
            in writing or printed form unless the Buyer requests otherwise. At
            the request of the Buyer, the document shall be provided in computer
            disk form or both printed and computer disk form. This Agreement is
            the result of negotiations among and have been reviewed by counsel
            to the Buyer and Seller, and are the products of both parties. In
            the interpretation of this Agreement, no rule of construction shall
            apply to disadvantage one party on the ground that such patty
            proposed or was involved in the preparation any particular provision
            of this Agreement or this Agreement itself. Except where otherwise
            expressly stated the Buyer may give or withhold, or give
            conditionally, approvals and consents, may be satisfied or
            unsatisfied, and may form opinions and make determinations at its
            absolute discretion. Any requirement of good faith or judgment by
            the Buyer shall not be construed to require Buyer to request or
            await receipt of information or documentation not immediately
            available from or with respect to the Seller, a servicer of the
            Purchased Assets, any other Person or the Purchased Assets
            themselves.

3.    THE TRANSACTIONS.

      a.    Seller shall repurchase Purchased Assets from Buyer on each related
            Repurchase Date. Such obligation to repurchase subsists without
            regard to any prior or intervening liquidation or foreclosure with
            respect to each Purchased Assets (but liquidation or foreclosure
            proceeds received by Buyer shall be applied to reduce the Repurchase
            Price except as otherwise provided herein). Seller is obligated to
            obtain the Purchased Assets from Buyer or its designee (including
            the Custodian) at Seller's expense on (or after) the related
            Repurchase Date.

      b.    Provided that the applicable conditions in Paragraphs 9(a) and 9(b)
            have been satisfied, each Purchased Asset that is repurchased by
            Seller on the 15th day of each month (or the following Business Day
            if such day is not a Business Day) following the related initial
            Purchased Date (the day of the month so determined for each month, a
            "Repurchase Date", which term shall also include the date determined
            by application of Paragraph 19)

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            shall automatically become subject to a new Transaction unless Buyer
            is notified by Seller at least five(5) Business Days prior to any
            Repurchase Date, provided that (i) if the Repurchase Date so
            determined is later than the date which is 364 days later than the
            Effective Date (the "Final Repurchase Date"), the Repurchase Date
            for such Transaction shall automatically reset to the Final
            Repurchase Date, and the provisions of this sentence as it might
            relate to a new Transaction shall expire on such date. For each new
            Transaction, unless otherwise agreed, (x) the Buyer's Margin
            Percentage shall be equal in the case of a Bridge Loan to 125% and
            in the case of a Mezzanine Loan to 155%, (y) the Pricing Rate shall
            be equal to Adjusted Libor plus 200 basis points (2 in the case of a
            Bridge Loan and 275 basis points (2.75%) in the case of a Mezzanine
            Loan, and (z) the accrued and unpaid Price Differential shall be
            settled in cash on each related Repurchase Date; provided however,
            that with respect to the Mezzobridge Assets, (w) the Buyer's Margin
            Percentage, (x) the Pricing Rate, (y) the Purchase Price and (z) the
            Final Repurchase Date shall be calculated in accordance with the
            Mezzobridge Schedule.

4.    ENTERING INTO TRANSACTIONS; TRANSACTION NOTICE, CONFIRMATIONS.

      a.    Unless otherwise agreed, Seller shall give Buyer and Custodian at
            least one (1) Business Day prior notice of any proposed Purchase
            Date (the date on which such notice is given, the "Notice Date"). On
            the Notice Date, Seller shall (i) request that Buyer enter into a
            Transaction by furnishing to Buyer and Custodian (either orally or
            in writing) the information specified in the form of Transaction
            Notice, or by delivering a Position Report as such, (ii) deliver to
            Buyer and Custodian a Loan Schedule and Computer Tape and (iii)
            deliver to Custodian (a) the Custodian's Loan File and (b) the
            related Collateral Receipt for each Loan subject to such
            Transaction.

      b.    Unless otherwise agreed, upon receipt of the Transaction Notice,
            Buyer shall make an offer to Seller specifying the terms for such
            Transaction, including the Purchase Price, the Pricing Rate and the
            Repurchase Date in respect of such Transaction. Upon Seller agreeing
            to enter into a Transaction hereunder, Buyer shall promptly deliver
            to Seller a confirmation of such Transaction (a "Confirmation"). The
            terms of any Transaction Notice, if any, signed by Seller shall be
            deemed incorporated by reference into the Confirmation and if the
            terms of the Transaction Notice conflicts with the Confirmation, the
            terms of the Confirmation shall prevail.

      c.    Each Confirmation and Transaction Notice, 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, and Seller's acceptance of the related
            proceeds shall constitute Seller's agreement to the terms of such
            Confirmation. It is the intention of

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            the parties that each Confirmation and Transaction Notice shall not
            be separate from this Agreement but shall be made a part of this
            Agreement. In the event of any conflict between this Agreement and a
            Confirmation, the terms of the Confirmation shall control with
            respect to the related Transaction.

5.    PAYMENT AND TRANSFER.

      Unless otherwise agreed, all transfers of funds hereunder shall be in
      immediately available funds and all Purchased Assets transferred shall be
      transferred to the Custodian pursuant to the Custodial Agreement. Any
      Repurchase Price received by Buyer after 2:00 p.m. New York City time
      shall be applied on the next succeeding Business Day, but such funds
      (absent an Event of Default) shall earn overnight interest at a rate
      established by Buyer.

6.    MARGIN MAINTENANCE

      a.    Absent a Default, and at any time the aggregate Market Value of all
            Purchased Assets subject to all Transactions 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 Buyer's option, to transfer to Buyer cash or
            additional Purchased Assets acceptable to Buyer and (in the case of
            Loans) which conform in all respects to the applicable
            representations and warranties set forth in Appendix A to the
            Custodial Agreement ("Additional Purchased Assets"), so that the
            cash and aggregate Market Value of the Purchased Assets, including
            any such Additional Purchased Assets, will thereupon equal or exceed
            such aggregate Buyer's Margin Amount (such requirement, a "Margin
            Call"). In lieu of such a transfer, Seller may repurchase any
            Purchased Asset giving rise to a Margin Call if such repurchase
            timely satisfies the Margin Call. In the event that a Margin Call is
            satisfied, Seller shall, during the 30-day period following the
            Margin Call, be permitted to repurchase the Purchased Assets by
            payment of the Repurchase Price allocable to such assets (as
            determined by Buyer in good faith) net of any dollar amount of the
            Margin Call paid by Seller that is allocable to such assets (as so
            determined). Absent a Default, Buyer shall not make a Margin Call
            prior to a Repurchase Date solely by reason of accrued and unpaid
            Price Differential. Simultaneously with a Margin Call, Buyer shall
            identify the Purchased Assets giving rise to the Margin Call and
            provide Seller with any backup materials reasonably requested by
            Seller that explain the Margin Call.

      b.    Notice required pursuant to Paragraph 6 a) above may be given on a
            Business Day by any means. Any notice given on a Business Day shall
            be met by the close of business on the following Business Day. The
            failure of Buyer, on any one or more occasions, to exercise its
            rights hereunder, shall not change or alter the terms and conditions
            to which this Agreement

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            is subject or limit the right of Buyer to do so at a later date.
            Seller and Buyer each agree that a failure or delay by Buyer to
            exercise its rights hereunder shall not limit or waive Buyer's
            rights under this Agreement or otherwise existing by law or in any
            way create additional rights for Seller.

      c.    Absent a Default, and not more frequently than weekly, Buyer shall
            at the written request of Seller or any Member of Seller release to
            Seller any amount by which the Market Value of all Purchased Assets
            exceeds the aggregate Buyer's Margin Amount.

7.    INCOME PAYMENTS.

      Where a particular term of a Transaction extends over an Income payment
      date on the Purchased Assets subject to that Transaction, such Income
      shall be the property of Buyer. Notwithstanding the foregoing, and
      provided no Event of Default has occurred, Buyer agrees that Seller shall
      be entitled to receive an amount equal to all Income paid on the Purchased
      Assets that is not otherwise received by Seller, to the full extent it
      would be so entitled if the Purchased Assets had not been sold to Buyer.
      Provided no Event of Default has occurred, 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 sole discretion), on
      the date such Income is paid either (i) transfer to Seller such Income
      with respect to any Purchased Assets sub to such Transaction or (ii) apply
      the Income payment 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 sentences 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 Assets sufficient to eliminate such Margin
      Deficit.

8.    SECURITY INTEREST.

      Seller and Buyer intend that the Transactions hereunder be sales to Buyer
      of the Purchased Assets and not loans from Buyer to Seller secured by the
      Purchased Assets. However, in order to present Buyer's rights under this
      Agreement in the event that a court or other forum recharacterizes the
      Transactions hereunder as other than sales, and as security for Seller's
      performance of all of its Obligations, Seller hereby grants Buyer a fully
      perfected first priority security interest in the Purchased Assets, the
      Records, and all related Servicing Rights, Property, insurance, Income,
      accounts (including any interest of Seller in escrow accounts) and any
      other contract rights, payments, rights to payment (including payments of
      interest or finance charges) general intangibles and other assets relating
      to the Purchased Assets (including, without limitation, furniture,
      fixtures and accounts) or any interest in the Purchased Assets, the
      servicing of the Purchased Assets, and any proceeds and distributions with
      respect to any of the foregoing and any other property, rights, titles a-
      interests as are specified on a Transaction Notice or Position Report
      (collectively, the "Collateral").

                                     - 12 -
<PAGE>
9.    CONDITIONS PRECEDENT.

      a.    As conditions precedent to the initial Transaction, Buyer shall have
            received on or before the day of such initial Transaction the
            following, in form and substance satisfactory to Buyer and duly
            executed by Seller:

            i.    The Program Documents duly executed and delivered by the
                  parties thereto.

            ii.   Evidence that all other actions necessary or, in the opinion
                  of Buyer, desirable to perfect and protect Buyer's interest in
                  the Purchased Assets and other Collateral have been taken,
                  including, without limitation, duly executed and filed Uniform
                  Commercial Code financing statements on Form UCC-l;

            iii.  A certified copy of Seller's corporate resolutions approving
                  the Program Documents and Transactions thereunder (either
                  specifically or by general resolution), and all documents
                  evidencing other necessary corporate action or governmental
                  approvals as may be required in connection with the Program
                  Documents;

            iv.   An incumbency certificate of Seller's corporate secretary
                  certifying the names, true signatures and titles of Seller's
                  representatives duly authorized to request Transactions
                  hereunder and to execute the Program Documents and the other
                  documents to be delivered thereunder;

            v.    An opinion of Seller's counsel as to such matters as Buyer may
                  reasonably request and in form and substance acceptable to
                  Buyer;

            vi.   A copy of the Underwriting Guidelines certified by an officer
                  of a Seller; and

            vii.  Any other documents reasonably requested by Buyer.

      b.    The obligation of Buyer to enter into each Transaction pursuant to
            this Agreement is subject to the following conditions precedent:

            i.    Buyer or its designee shall have received on or before the day
                  of such Transaction (unless otherwise specified in this
                  Agreement) the following, in form and substance satisfactory
                  to Buyer and (if applicable) duly executed:

                                     - 13 -
<PAGE>
                  A.    A Transaction Notice delivered pursuant to Paragraph
                        4(a);

                  B.    The related Trust Receipt; and

                  C.    Such certificates, opinions of counsel or other
                        documents as Buyer may reasonably request.

            ii.   No Default shall have occurred and be continuing.

            iii.  No catastrophic event or events shall have been determined by
                  Buyer to have occurred resulting in the effective absence of a
                  "repo market" for a period of at least two (2) consecutive
                  days respecting loans or mortgage- or asset-backed securities
                  such that Buyer is or was unable to finance or fund purchases
                  under this Agreement through the "repo market" or Buyer's
                  customers.

            iv.   Buyer shall not have determined that the introduction of or a
                  change in any requirement of law or in the interpretation or
                  administration of any requirement of law applicable to Buyer
                  has made it unlawful, and no Governmental Authority shall have
                  asserted that it is unlawful, for Buyer to enter into
                  Transactions with a Pricing Rate based on Adjusted LIBOR.

            v.    All representations and warranties in the Program Documents
                  hereof shall be true and correct on the date of such
                  Transaction.

            vi.   (A) The then aggregate outstanding Purchase Price for all
                  Purchased Assets (including adjustable-rate Loans), when added
                  to the Purchase Price for the requested Transaction, shall not
                  exceed ONE HUNDRED MILLION DOLLARS ($100,000,000), and (B) if
                  the Purchased Assets for the requested Transaction are
                  Mezzanine Loans, the then aggregate outstanding Purchase Price
                  for all Purchased Assets that are Mezzanine Loans (such
                  calculation to be inclusive of Mezzanine Loans which are
                  Mezzobridge Assets), when added to the Purchase Price for the
                  requested Transaction, shall not exceed TWENTY-FIVE MILLION
                  DOLLARS ($25,000,000) and (C) if the Purchased Assets for the
                  requested Transaction are Mezzobridge Assets, the then
                  aggregate outstanding Purchase Price for all Purchased Assets
                  that are Mezzobridge Assets, when added to the Purchase Price
                  for the requested Transaction, shall not exceed the amount
                  determined in accordance with the Purchase Price formula set
                  forth on the Mezzobridge Schedule (as reduced from time to
                  time by any recoveries of principal thereon or disposition
                  proceeds therefrom).

            vii.  In the event that Buyer requests at any time and from time to
                  time with respect to any Purchased Asset which is a Loan that
                  is in

                                     - 14 -
<PAGE>
      default or otherwise requires a degree of active servicing as determined
      by Buyer, the Seller shall promptly organize a special purpose subsidiary
      for the purpose of holding such Purchased Asset and shall pledge 100% of
      the equity or ownership interests of such subsidiary to Buyer under
      agreements and circumstances acceptable to Buyer.

10.   RELEASE OF COLLATERAL.

      Upon timely payment in full of the Repurchase Price and all other
      Obligations owing with respect to a Purchased Asset, if no Default or
      Event of Default has occurred and is continuing, Buyer shall, and shall
      direct Custodian to, release such Purchased Asset unless such release
      would give rise to or perpetuate a Margin Deficit. Except as set forth in
      Paragraphs 6(a) and 16, Seller shall give at least five (5) Business Days'
      prior written notice to Buyer if such repurchase shall occur on other than
      a Repurchase Date.

      If such a Margin Deficit is applicable, Buyer shall notify Seller of the
      amount thereof and Seller may thereupon satisfy the Margin Call in the
      manner specified in Section 6.

11.   RELIANCE.

      With respect to any Transaction, Buyer may conclusively rely upon, and
      shall incur no liability to Seller in acting upon, any request or other
      communication that Buyer reasonably believes to have been given or made by
      a person authorized to enter into a Transaction on Seller behalf, whether
      or not such person is listed on the certificate delivered pursuant to
      subparagraph 9(a)(iv) hereof. In each such case, Seller hereby waives the
      right to dispute Buyer's record of the terms of the Confirmation, request
      or other communication.

12.   REPRESENTATIONS AND WARRANTIES.

      Seller hereby represents and warrants, and shall on and as of the Purchase
      Date for any Transaction and on and as of each date thereafter through and
      including the related Repurchase Date be deemed to represent and warrant,
      that

      a.    Due Organization and Qualification. Seller is duly organized,
            validly existing and in good standing under the laws of the
            jurisdiction under whose laws it is organized. Seller is duly
            qualified to do business, is in good standing and has obtained all
            necessary licenses, permits, charters, registrations and approvals
            necessary for the conduct of its business as currently conducted and
            the performance of its obligations under the Program Documents.

      b.    Power and Authority. Seller has all necessary power and authority to
            conduct its business as currently conducted, to execute, deliver and

                                     - 15 -
<PAGE>
            perform its obligations under the Program Documents and to
            consummate the Transactions.

      c.    Due Authorization. The execution, delivery and performance of the
            Program Documents by Seller has been duly authorized by all
            necessary limited liability company action and do not require any
            additional approvals or consents or other action by or any notice to
            or filing with any Person.

      d.    Noncontravention. None of the execution and delivery of the Program
            Documents by Seller or the consummation of the Transactions and
            transactions thereunder:

            i.    conflicts with, breaches or violates any provision of the
                  certificate of formation or operating agreement of Seller or
                  any law, rule, regulation, order, writ, judgment, injunction,
                  decree, determination or award currently in effect having
                  applicability to Seller or its properties;

            ii.   constitutes a material default by Seller under any loan or
                  repurchase agreement, mortgage, indenture or other agreement
                  or instrument to which Seller is a party or by which it or any
                  of its properties is or may be bound or affected; or

            iii.  results in or requires the creation of any lien upon or in
                  respect of any of the assets of Seller except the lien
                  relating to the Program Documents.

      e.    Legal Proceedings. There is no action, proceeding or investigation
            by or before any court, governmental or administrative agency or
            arbitrator affecting any of the Purchased Assets, Seller or any of
            their Affiliates, pending or threatened, which, if decided
            adversely, would have a material adverse change with respect to
            Seller or any Purchased Asset.

      f.    Valid and Binding Obligations. Each of the Program Documents to
            which Seller is a party when executed and delivered by Seller will
            constitute the legal, valid and binding obligations of Seller,
            enforceable in accordance with their respective terms, except as
            such enforceability may be limited by bankruptcy, insolvency,
            reorganization, moratorium or other similar laws affecting
            creditors' rights generally and general equitable principles.

      g.    Financial Statements. The financial statements of Seller, copies of
            which have been furnished to Buyer, (i) are, as of the dates and for
            the periods referred to therein, complete and correct in all
            material respects, (ii) present fairly the financial condition and
            results of operations of Seller as of the dates and for the periods
            indicated and (iii) have been prepared in accordance with GAAP
            consistently applied, except as noted therein

                                     - 16 -
<PAGE>
            (subject as to interim statements to normal year-end adjustments).
            Since the date of the most recent financial statements, there has
            been no material adverse change in such financial condition or
            results of operations. Except as disclosed in such financial
            statements, Seller is not subject to any contingent liabilities or
            commitments that, individually or in the aggregate, have a material
            possibility of causing a material adverse change in the business or
            operations of Seller.

      h.    Accuracy Information. None of the documents or information prepared
            by or on behalf of Seller and provided by Seller to Buyer relating
            to Seller or its financial condition contain any statement of a
            material fact with respect to Seller or the Transactions that was
            untrue or misleading in any material respect when made. Since the
            furnishing of such documents or information, there has been no
            change, nor any development or event involving a prospective change
            known too, that would render any of such documents or information
            untrue or misleading in any material respect.

      i.    No Consents. No consent, license, approval or authorization from, or
            registration, filing or declaration with, any regulatory body,
            administrative agency, or other governmental instrumentality, nor
            any consent, approval, waiver or notification of any creditor,
            lessor or other nongovernmental person, is required in connection
            with the execution, delivery and performance by Seller of this
            Agreement or the consummation by Seller of any other Program
            Document.

      j.    Compliance With Law, Etc. No practice, procedure or policy employed
            or proposed to be employed by Seller in the conduct of its
            businesses violates any law, regulation, judgment, agreement, order
            or decree applicable to it which, if enforced, would result in
            either a Material Adverse Change with respect to Seller or a
            Material Adverse Effect.

      k.    Solvency: Fraudulent Conveyance. Seller is solvent and will not be
            rendered insolvent by the Transaction and, after giving effect to
            such Transaction, Seller will not be left with an unreasonably small
            amount of capital with which to engage in its business. Seller does
            not intend to incur, or believe that it has incurred, debts beyond
            its ability to pay such debts as they mature. Seller is not
            contemplating the commencement of insolvency, bankruptcy,
            liquidation or consolidation proceedings or the appointment of a
            receiver, liquidator, conservator, trustee or similar official in
            respect of Seller or any of its assets. The amount of consideration
            being received by the Seller upon the sale of the Purchased Assets
            to Buyer constitutes reasonably equivalent value and fair
            consideration for such Purchased Assets. Seller is not transferring
            any Purchased Assets with any intent to hinder, delay or defraud any
            of its creditors.

                                     - 17 -
<PAGE>
      l.    Investment Company Act Compliance. Seller is not required to be
            registered as an "investment company" as defined under the
            Investment Company Act nor as an entity under the control of an
            "investment company" as defined under the Investment Company Act.

      m.    Taxes. Seller has filed all federal and state tax returns which are
            required to be filed and paid all taxes, including any assessments
            received by it, to the extent that such taxes have become due. Any
            taxes, fees and other governmental charges payable by Seller in
            connection with a Transaction and the execution and delivery of the
            Program Documents have been paid (other than for taxes that are
            being contested in good faith or for which it has established
            adequate reserves).

      n.    Additional Representations. With respect to each Loan, Seller hereby
            makes all of the applicable representations and warranties set forth
            (i) on App of the Custodial Agreement for the related loan Type, if
            applicable to any Purchased Asset, and (ii) in each Confirmation to
            which such Purchased Asset is or has been subject, in each case as
            of the date the documents related to such than are delivered to the
            Custodian, and continuously while such Loan is part of the
            Collateral and subject to a Transaction.

      o.    Hedging. Seller has entered into the interest rate hedging
            arrangements described in the related Transaction Notices, if
            applicable (as amended with the approval of Buyer), which are fully
            subject to a Securities Account Control Agreement. All hedging for
            the Loans shall be subject to a Securities Account Control
            Agreement.

      p.    No Broker. The Seller has not dealt with any broker, investment
            banker, agent, or other person, except for the Buyer, who may be
            entitled to any commission or compensation in connection with the
            sale of Purchased Assets pursuant to this Agreement; provided, that
            if Seller has dealt with any broker, investment banker, agent, or
            other person, except for the Buyer, who may be entitled to any
            commission or compensation in connection with the sale of Purchased
            Assets pursuant to this Agreement, such commission or compensation
            shall have been paid in full by Seller.

      q.    Corporate Separateness. Seller and Custodian each maintain wholly
            separate businesses and principal offices and have no interlocking
            offices or directors.

      r.    Construction Loans. If a Loan has not been fully disbursed as of the
            Purchase Date therefor, the Obligor thereunder has entered into a
            funding participant side letter approved by Buyer recognizing
            Buyer's right to make advances upon Seller's failure to do so.

                                     - 18 -
<PAGE>
      The representations and warranties set forth in this Agreement shall
      survive transfer of the Purchased Assets to Buyer and shall continue for
      so long as the Purchased Assets are subject to this Agreement.

13.   COVENANTS OF SELLER.

      Seller hereby covenants with Buyer as follows:

      a.    Defense of Title. Seller warrants and will defend, and shall cause
            any servicer to defend, the right, title and interest of Buyer in
            and to all Collateral against all adverse claims and demands.

      b.    No Amendment or Compromise. Without Buyer's prior written consent,
            neither Seller, nor those acting on Seller's behalf, shall amend or
            modify, or waive any term or condition of, or settle or compromise
            any claim in respect of, any item of the Purchased Assets or any
            related rights.

      c.    No Assignment. Except as permitted herein, neither Seller nor any
            servicer shall sell, assign, transferor otherwise dispose of, or
            grant any option with respect to, or pledge, hypothecate or grant a
            security interest in or lien on or otherwise encumber (except
            pursuant to the Program Documents), any of the Purchased Assets or
            any interest therein, nor shall Seller permit or suffer to exist any
            such sale or encumbrance by Seller, provided that this paragraph
            shall not prevent any transfer of Purchased Assets in accordance
            with the Program Documents

      d.    Servicing of Loans. Seller shall service, or cause to be serviced,
            all Loans that are part of the Purchased Assets in accordance with
            the standard industry practices, pending delivery of such servicing
            to Buyer, employing at least the same procedures and exercising the
            same care that Seller customarily employs in servicing Loans for its
            own account- Seller shall notify servicers of Buyer's interest
            hereunder and Seller shall notify Buyer of the name and address of
            all servicers of Loans. Buyer shall have the right to approve each
            servicer and the form of all Servicing Agreements. Seller shall hold
            or cause to be held all escrow finds collected with respect to such
            Loans in trust accounts and shall apply the same for the purposes
            for which such finds were collected. The Seller shall cause the
            borrower under each Loan Note to remit all Loan Payments to the
            Lockbox Bank and not otherwise. Upon Buyer's request, Seller shall
            provide to Buyer a letter addressed to and agreed to by each
            servicer of Loans, in form and substance reasonably satisfactory to
            Buyer, advising such servicer of such matters as Buyer may
            reasonably request. If Seller should discover that, for any reason
            whatsoever, Seller or any entity responsible to Seller by contract
            for managing or servicing any such Loan has failed to perform fully
            Seller's obligations under the Program Documents or any of the
            obligations of such entities with respect to the Purchased Assets,
            Seller shall promptly notify Buyer.

                                     - 19 -
<PAGE>
      e.    Preservation of Collateral; Collateral Value. Seller shall do all
            things necessary to preserve the Collateral so that it remains
            subject to a first priority perfected security interest hereunder.
            Without limiting the foregoing, Seller will comply with all rules,
            regulations and other laws of any Governmental Authority and cause
            the Collateral to comply with all applicable rules, regulations and
            other laws. Seller will not allow any default for which Seller is
            responsible to occur under any Collateral, and Seller shall fully
            perform or cause to be performed when due all of its obligations
            under any Collateral or the Program Documents.

      f.    Maintenance of Papers, Records and Files. Seller shall acquire, and
            Seller or servicer of the Purchased Assets shall build, maintain and
            have available, a complete tile in accordance with lending industry
            custom and practice for each Purchased Asset. Seller or the servicer
            of the Purchased Assets will maintain alt such Records not in the
            possession of Custodian in good and complete condition in accordance
            with industry practices and preserve them against loss.

            i.    Seller shall collect and maintain or cause to be collected and
                  maintained all Records relating to the Purchased Assets in
                  accordance with industry custom and practice, including those
                  maintained pursuant to the preceding subparagraph, and all
                  such Records shall be in Custodian's possession unless Buyer
                  otherwise approves. Seller will not allow any such papers,
                  records or files that are an original or an only copy to leave
                  Custodian's possession, except for individual items removed in
                  connection with servicing a specific Loan, in which event
                  Seller will obtain or cause to be obtained a receipt thin a
                  financially responsible person for any such paper, record or
                  file.

            ii.   For so long as Buyer has an interest in or lien on any
                  Purchased Asset, Seller will hold or cause to be held all
                  related Records in trust for Buyer, Seller shall notify, or
                  cause to be notified, every other party holding any such
                  Records of the interests and liens granted hereby.

            iii.  Upon reasonable advance notice from Custodian or Buyer, Seller
                  shall (x) make any and all such Records available to Custodian
                  or Buyer to examine any such Records, either by its own
                  officers or employees, or by agents or contractors, or both,
                  and make copies of all or any portion thereof, (y) permit
                  Buyer or its authorized agents to discuss the affairs,
                  finances and accounts of Seller with its respective chief
                  operating officer and chief financial officer and to discuss
                  the affairs, finances and accounts of Seller with its
                  independent certified public accountants.

                                     - 20 -
<PAGE>
      g.    Financial Statements: Accountants' Reports: Other Information.
            Seller shall keep or cause to be kept in reasonable detail books and
            records of account of its assets and business and shall clearly
            reflect therein the transfer of Purchased Assets to the Buyer.
            Seller shall furnish or cause to be furnished to Buyer promptly upon
            Buyer's request the following:

            i.    Financial Statements. (x) As soon as available and in any
                  event within 90 days after the end of each fiscal year, the
                  consolidated, audited balance sheets of Seller as of the end
                  of each fiscal year of Seller and the audited financial
                  statements of income and changes in equity of Seller for such
                  fiscal year and (y) as soon as available and in any event
                  within 45 days after the end of each quarter, the
                  consolidated, unaudited balance sheets of Seller as of the end
                  of each quarter and the unaudited financial statements of
                  income and changes in equity of Seller for the portion of the
                  fiscal year then ended, all of which were prepared in
                  accordance with GAAP.

            ii.   Loan Performance Data. Monthly reports in form and scope
                  satisfactory to Buyer, setting forth data regarding the
                  performance of the Purchased Assets, and such other
                  information as Buyer may reasonably request.

            iii.  Monthly Servicing Diskettes. A computer tape and a diskette
                  (or any other electronic transmission acceptable to Buyer) in
                  a format acceptable to Buyer containing such information with
                  respect to the Purchased Assets as Buyer may reasonably
                  request.

      h.    Notice of Material Events. Seller shall promptly inform Buyer in
            writing of any of the following:

            i.    any Default, Event of Default or default or breach by Seller
                  of any obligation under any Program Document, or the
                  occurrence or existence of any event or circumstance that
                  Seller reasonably expects will with the passage of time become
                  a Default, Event of Default or such a default or breach by
                  Seller;

            ii.   any change in the insurance coverage required of the Seller or
                  any other Person pursuant to any Program Document, with copy
                  of evidence of same attached;

            iii.  any financial or operational report or statement of Seller
                  (regular, periodic or special) delivered to or filed with any
                  Governmental Authority or other third party, with copy of same
                  attached;

            iv.   any material dispute, litigation, investigation, proceeding or
                  suspension between the Seller and any Governmental Authority
                  or any other Person;

                                     - 21 -
<PAGE>
            v.    any material change in accounting policies or financial
                  reporting practices of the Seller,

            vi.   the occurrence of any material employment dispute and a
                  description of the strategy for resolving it; and

            vii.  any event, circumstance or condition that has resulted, or has
                  a possibility of resulting in either a Material Adverse Change
                  with respect to Seller or a Material Adverse Effect.

      i.    Maintenance of Licenses. Seller shall maintain all licenses, permits
            or other approvals necessary for Seller to conduct its business and
            to perform its obligations under the Program Documents.

      j.    No Withholdings for Taxes. Any payments made by Seller to Buyer
            shall be free and clear of, and without deduction or withholding
            for, any taxes; provided, however, that if Seller shall be required
            by law to deduct or withhold any taxes from any sums payable to
            Buyer, then Seller shall (A) make such deductions or withholdings
            and pay such amounts to the relevant authority in accordance with
            applicable law, (B) pay to Buyer the sum that would have been
            payable had such deduction or withholding not been made, and (C) at
            the time Price Differential is paid, pay to Buyer all additional
            amounts as specified by Buyer to preserve the after-tax yield the
            Buyer would have received if such tax had not been imposed.

      k.    Change in Nature of Business. Seller shall not make any material
            change in the nature of its business as carried on at the date
            hereof.

      l.    Voluntary Bankruptcy. Seller shall not commence or join voluntarily
            in any proceeding to adjudicate it a bankrupt or insolvent, or seek
            liquidation, winding up, reorganization, arrangement, adjustment,
            protection, relief or composition of it or its debts under any laws
            relating to bankruptcy, insolvency, or relief or the appointment of
            a receiver, trustee or similar official for it or any substantial
            part of its property.

14.   P&I REMITTANCE DATE PAYMENTS/COLLECTIONS.

      On each Repurchase Date, Seller shall remit or shall cause to be remitted
      to Buyer:

      a.    All principal under the Purchased Assets received in the calendar
            month preceding the month in which such Repurchase Date occurs;

      b.    All principal prepayments received on the Purchased Assets in the
            calendar month in which such Repurchase Date occurs (provided that
            the date of receipt is prior to the Repurchase Date); and

      c.    That portion of the Price Differential that has accrued as d such
            date.

                                     - 22 -
<PAGE>
15.   REPURCHASE OF PURCHASED ASSETS.

      a.    Upon discovery by Seller of a breach of any of the representations
            and warranties set forth in Appendix A to the Custodial Agreement,
            Seller shall give prompt written notice thereof to Buyer. Upon any
            such discovery by Buyer, Buyer will notify Seller. If Seller does
            not cure such breach on or before the 30th day following receipt of
            notice of such breach, then Seller shall repurchase the affected
            Purchased Asset (with the consent of Buyer) on the next succeeding
            Business Day.

      b.    If Buyer determines that the introduction of; any change in, or the
            interpretation or administration of any requirement of law has made
            it unlawful to engage in any Transactions with a Pricing Rate based
            on Adjusted LIBOR, then Seller (i) shall, upon its receipt of notice
            of such fact and demand from Buyer (with a copy of such notice to
            Custodian), repurchase the Purchased Assets subject to the
            Transaction on the next succeeding Business Day and concurrently
            enter into a new Transaction with Buyer with a Pricing Rate based on
            the Prime Rate plus a margin and (ii) may elect, by giving notice to
            Buyer and Custodian, that all new Transactions shall have Pricing
            Rates based on the Prime Rate plus a margin. The foregoing margins
            shall be solely determined and calculated by Buyer in good faith.

16.   SUBSTITUTION.

      a.    Seller may, subject to agreement with and acceptance by Buyer,
            substitute other assets which are substantially be same as the
            Purchased Assets (the "Substitute Assets") for any Purchased Assets.
            Such substitution shall be made by transfer to Buyer of such
            Substitute Assets and transfer to Seller of such Purchased Assets.
            After substitution, the Substitute Assets shall be deemed to be
            Purchased Assets.

      b.    In the case of any Transaction for which the Repurchase Date is
            other than the Business Day immediately following the Purchase Date
            and with respect to which Seller does not have any existing right to
            substitute Substitute Assets for the Purchased Assets, Seller shall
            have the right, subject to the proviso to this sentence, upon notice
            to Buyer, which notice shall be given at or prior to 10 an. (New
            York City time) on the second preceding Business Day, to substitute
            Substitute Assets for any Purchased Assets; provided, however, that
            Buyer may elect, by the close of business on the Business Day
            following which such notice is received, or by the close of the next
            Business Day if notice is given after 10 a.m. (New York City time)
            on such thy, not to accept such substitution. In the event such
            substitution is accepted by Buyer, such substitution shall be made
            by Seller's transfer to Buyer of such Substitute Assets and Buyer's
            transfer to Seller of such Purchased Assets, and after such
            substitution, the Substitute Assets shall be deemed to be Purchased
            Assets. In the event Buyer elects

                                     - 23 -
<PAGE>
            not to accept such substitution, Buyer shall offer Seller the right
            to terminate the Transaction.

      c.    In the event Seller exercises its right to substitute or terminate
            under subparagraph (b), Seller shall be obligated to pay to Buyer,
            by the close of the Business Day of such substitution, as the case
            may be, an amount equal to (A) Buyer's actual cost in bona tide
            third party transactions (including all fees, expenses and
            commissions) of (i) entering into replacement transactions; (ii)
            entering into or terminating hedge transactions; and/or (iii)
            terminating transactions or substituting securities in like
            transactions with third parties in connection with or as a result of
            such substitution or termination, and (B) to the extent Buyer
            determines not to enter into replacement transactions, the loss
            incurred by Buyer directly arising or resulting from such
            substitution or termination. The foregoing amounts shall be solely
            determined and calculated by Buyer in good faith, and such
            determination shall be binding upon the parties, absent manifest
            error.

17.   REPURCHASE TRANSACTIONS.

      Buyer may, in its sole election, engage in repurchase transactions with
      the Purchased Assets or otherwise pledge, hypothecate, assign, transfer or
      otherwise convey the Purchased Assets with a counterparty of Buyer's
      choice, in all cases subject to the Buyer's obligation to reconvey the
      Purchased Assets on the Repurchase Date. In the event Buyer engages in a
      repurchase transaction with any of the Purchased Assets or otherwise
      pledges or hypothecates any of the Purchased Assets, Buyer shall have the
      right to assign to Buyer's counterparty any of the applicable
      representations or warranties in App of the Custodial Agreement and the
      remedies for breach thereof, as they relate to the Purchased Assets that
      are subject to such repurchase transaction.

18.   EVENTS OF DEFAULT.

      With respect to any Transactions covered by or related to this Agreement,
      the occurrence of any of the following events shall constitute an "E of
      Default":

      a.    Seller fails to transfer the Purchased Assets to Buyer by the
            Business Day following the applicable Purchase Date;

      b.    Seller fails to repurchase the Purchased Assets by the Business Day
            following the applicable Repurchase Date;

      c.    Seller shall fail to perform, observe or comply with any other term,
            covenant or agreement contained in the Program Documents that is
            reasonably determined by Buyer to be material, and such failure is
            not cured within five Business Days of notice thereof to Seller
            (subject to extension for an additional five Business Days if such
            failure is reasonably

                                     - 24 -
<PAGE>
            susceptible to cure during such period and Seller has evidenced good
            faith progress thereto);

      d.    Any representation or warranty made by Seller (or any of Seller's
            officers) in the Program Documents or in any other document (other
            than the representations or warranties in Appendix A to the
            Custodial Agreement) shall have been incorrect or untrue in any
            material respect when made or repeated or deemed to have been made
            or repeated, subject to a fifteen Business Day cure period following
            discovery by or notice to Seller, but only if and to the extent that
            such breach is reasonably susceptible to cure and the Seller is
            evidencing good faith progress to cure it within such period;

      e.    Seller or any of Seller's Subsidiaries shall fail to pay any of
            Seller's or Seller's Subsidiaries' Indebtedness, or any interest or
            premium thereon when due (whether by scheduled maturity, requirement
            prepayment, acceleration, demand or otherwise), or shall fail to
            make any payment when due under Seller's or Seller's Subsidiaries'
            Guarantee of another person's Indebtedness for borrowed money, and
            such failure shall continue after the applicable grace period, if
            any, specified in the agreement or instrument relating to such
            Indebtedness or Guarantee and such failure shall cause the
            acceleration, of the maturity of such Indebtedness or Guarantee; or
            any other default under any agreement or instrument relating to any
            such Indebtedness or Guarantee, or any other event, shall occur and
            shall continue after the applicable grace period, if any, specified
            in such agreement, instrument or Guarantee and such failure shall
            cause the acceleration of the maturity of such Indebtedness or
            Guarantee, if the effect of such default or event is to accelerate,
            or to permit the acceleration of, the maturity of such Indebtedness
            or Guarantee; or if any such Indebtedness or Guarantee shall be
            declared to be due and payable, or required to be prepaid (other
            than by a regularly scheduled required prepayment), prior to the
            stated maturity thereof notwithstanding any other provision herein
            to the contrary for the purposes of this Section 18 e), the terms
            "Indebtedness" and "Guarantee" shall not include obligations which
            in the aggregate are less than $500,000.

      f.    A custodian, receiver, conservator, liquidator, trustee,
            sequestrator or similar official for Seller or any of Seller's
            Subsidiaries, or of any of Seller's Property, is appointed or takes
            possession of such property or Seller or any of Seller's
            Subsidiaries generally fails to pay Seller's, or Seller's
            Subsidiaries' debts as they become due; or Seller or any of Seller's
            Subsidiaries is adjudicated bankrupt or insolvent; or an order for
            relief is entered under the Federal Bankruptcy Code, or any
            successor or similar applicable statute, or any administrative
            insolvency scheme, against Seller or any of Seller's Subsidiaries;
            or any of Seller's or Seller's Subsidiaries' Property is sequestered
            by court or administrative order; or a petition is filed against
            Seller or any of Seller's Subsidiaries under any

                                     - 25 -
<PAGE>
            bankruptcy, reorganization, arrangement, insolvency, readjustment of
            debt, dissolution, moratorium, delinquency or liquidation law of any
            jurisdiction, whether now or subsequently in effect; provided that,
            if any event described in this subparagraph (f) is not voluntarily
            caused or consented to by Seller or an applicable Subsidiary, a
            30-day cure period shall be applicable to stay or discharge such
            event;

      g.    Seller or any of Seller's Subsidiaries files a voluntary petition in
            bankruptcy seeks relief under any provision of any bankruptcy,
            reorganization, moratorium, delinquency, arrangement, insolvency,
            readjustment of debt, dissolution or Liquidation law of any
            jurisdiction whether now or subsequently in effect; or consents to
            the filing of any petition against it under any such law; or
            consents to the appointment of or taking possession by a custodian,
            receiver, conservator, trustee, liquidator, sequestrator or similar
            official for Seller or any of Seller's Subsidiaries, or of all or
            any part of Seller's or Seller's Subsidiaries' Property; or makes an
            assignment for the benefit of Seller or Seller's Subsidiaries'
            creditors;

      h.    Either (i) any fatal, nonappealable judgment or order for the
            payment of money in excess of $1,000,000 is rendered against Seller
            or any of Seller's Subsidiaries or (ii) any such fatal,
            nonappealable judgment or order of less than $1,000,000 remains
            undischarged or unsatisfied after the passage of 60 days following
            the date on which it is entered;

      i.    Any Governmental Authority or any person, agency or entity acting or
            purporting to act under governmental authority shall have taken any
            action to condemn, seize or appropriate, or to assume custody or
            control of; all or any substantial part of the Property of Seller,
            or of any of Seller's Subsidiaries, or shall have taken any action
            to displace the management of Seller or of any of Seller's
            Subsidiaries or to curtail its authority in the conduct of the
            business of Seller or of any of Seller's Subsidiaries, or takes any
            action to remove, limit or restrict the approval of Seller or any of
            Seller's Subsidiaries as an issuer, buyer or a seller/servicer of
            Loans or securities backed thereby, and such action provided for in
            this subparagraph (1) shall not have been discontinued or stayed
            with in 30 days;

      j.    Seller or any of Seller's Subsidiaries shall default under, or fail
            to perform as requested under, or shall otherwise breach the
            material terms of any instrument, agreement or contract reasonably
            determined by Buyer to be material between Seller and Buyer or any
            of Buyer's Affiliates, and any applicable grace or cure period in
            such instrument, agreement or contract shall haw expired;

      k.    In the good faith judgment of Buyer any Material Adverse Change
            shall have occurred with respect to Seller or any of Seller's
            Subsidiaries, taken together as a whole;

                                     - 26 -
<PAGE>
      l.    Seller shall admit its inability to, or Seller's intention not to,
            perform any of Seller's Obligations hereunder;

      m.    Seller dissolves, merges or consolidates with another entity unless
            Seller is the surviving party, or sells, transfers, or otherwise
            disposes of a material portion of Seller's business or assets;

      n.    This Agreement shall for any reason cease to create a valid, first
            priority security interest in any of the Purchased Assets purported
            to be covered hereby;

      o.    Seller's audited annual financial statements or the notes thereto or
            other opinions or conclusions stated therein shall be qualified or
            limited by reference to the status of Seller as a "going concern" or
            a reference of similar import;

      p.    Any material amendment is made to the Underwriting Guidelines which
            was not previously approved in writing by Buyer;

      q.    Either (i) a change in Control (as such term is defined in Rule 1
            2b-2 of the Securities Exchange Act of 1934, as amended) of Setter
            shall have occurred (other than a change in Control resulting from a
            public offering of Seller's stock following which Ivan Kaufman
            remains in Control) or (ii) Ivan Kaufman shall cease to be the chief
            executive officer of the Seller and to function in substantially the
            same capacity as be functions as of the date hereof, or

      r.    Either ( the ratio of Seller's total liabilities to net worth
            exceeds 8:1 (or, 10:1 if so required in any other financing
            arrangement of Seller), or (ii) the net north of Seller is less than
            $45 million (increased by 75% of any additional equity or
            convertible debt issued beyond the amounts set forth in the most
            recent financial statements of Seller).

      It is understood and agreed that any default, cure or notice period
      provided for in the Program Documents may be accelerated by Buyer
      unilaterally upon Buyer's or Agent's good faith determination that it is
      reasonable to do so under the circumstances, with due consideration to the
      volatility of markets, the seriousness of any Defaults and the perceived
      risk to Buyer of delay.

19.   REMEDIES.

      Upon the occurrence of an Event of Default, Buyer, at its option (which
      option shall be deemed to have been exercised immediately upon the
      occurrence of an Event of Default pursuant to Paragraph 18(h) or (i)
      hereof), shall have any or all of the following rights and remedies, which
      may be exercised by Buyer:

      a.    The Repurchase Date for each Transaction hereunder shall be deemed
            immediately to occur.

                                     - 27 -
<PAGE>
      b.    Seller's obligations hereunder to repurchase all Purchased Assets at
            the Repurchase Price therefor on the Repurchase Date in such
            Transactions shall thereupon become immediately due and payable; all
            Income paid after such exercise or deemed exercise shall be retained
            by Buyer and applied to the aggregate Repurchase Prices and any
            other amounts owing by Seller hereunder; Seller shall immediately
            deliver to Buyer or its designee any and all original papers,
            records and files relating to the Purchased Assets subject to such
            Transaction then in Seller's possession and/or control; and all
            right, title and interest in and entitlement to such Purchased
            Assets and Servicing Rights thereon shall be deemed transferred to
            Buyer.

      Buyer may (A) immediately sell, without notice or demand of any kind, at a
      public or private sale and at such price or prices as Buyer may reasonably
      deem satisfactory any or all Purchased Assets or (B) in its sole
      discretion elect, in lieu of selling all or a portion of such Purchased
      Assets, to give Seller credit for such Purchased Assets in an amount equal
      to the Market Value of the Purchased Assets against the aggregate unpaid
      Repurchase Price and any other amounts owing by Seller hereunder. The
      proceeds of any disposition of Purchased Assets shall be applied first to
      the reasonable costs and expenses incurred by Buyer in connection with or
      as a result of an Event of Default; second to consequential damages,
      including, but not limited to, costs of cover and/or related hedging
      transactions; third to the aggregate Repurchase Prices; and fourth to all
      other Obligations.

      The parties recognize that it may not be possible to purchase or sell all
      of the Purchased Assets on a particular Business Day, or in a transaction
      with the same purchaser, or in the same manner because the market for such
      Purchased Assets may not be liquid. In view of the nature of the Purchased
      Assets, the parties agree that liquidation of a Transaction or the
      underlying Purchased Assets does not require a public purchase or sale and
      that a good faith private purchase or sale shall be deemed to have been
      made in a commercially reasonable manner. Accordingly, Buyer may elect the
      time and manner of liquidating any Purchased Asset and nothing contained
      herein shall obligate Buyer to liquidate any Purchased Asset on the
      occurrence of an Event of Default or to liquidate all Purchased Assets in
      the same manner or on the same Business Day or constitute a waiver of any
      right or remedy of Buyer.

      In addition to its rights hereunder, Buyer shall have the right to proceed
      against any of Seller's assets which may be in the possession of Buyer or
      its designee (including the Custodian), including the right to liquidate
      such assets and to set-off the proceeds against monies owed by Seller to
      Buyer pursuant to this Agreement. Buyer may set off cash, the proceeds of
      the liquidation of the Purchased Assets and Additional Purchased Assets,
      any other Collateral or its proceeds and all other sums or obligations
      owed by Buyer to Seller hereunder against all of Seller's Obligations to
      Buyer, whether under this Agreement, under a Transaction, or under any
      other agreement between the parties, or otherwise,

                                     - 28 -
<PAGE>
      whether or not such Obligations are then due, without prejudice to Buyer's
      right to recover any deficiency.

      Buyer may direct all Persons servicing the Purchased Assets to take such
      action with respect to the Purchased Assets as Buyer determines
      appropriate.

      Seller shall be liable to Buyer for the amount of all expenses (plus
      interest thereon at ante equal to the Default Rate), and consequential
      damages, including without limitation, all costs and expenses incurred in
      connection with hedging or covering transactions.

      Seller shall cause all sums received by it with respect to the Purchased
      Assets to be deposited with Custodian (or such other Person as Buyer may
      direct) after receipt thereof.

      Buyer shall without regard to the adequacy of the security for the
      Obligations, be entitled to the appointment of a receiver by any court
      having jurisdiction, without notice, to take possession of and protect,
      collect, manage, liquidate, and sell the Purchased Assets and any other
      Collateral or any portion thereof, collect the payments due with respect
      to the Purchased Assets and any other Collateral or any portion thereof,
      and do anything that Buyer is authorized hereunder to do. Seller shall pay
      all costs and expenses incurred by Buyer in connection with the
      appointment and activities of such receiver.

      Buyer may enforce its rights and remedies hereunder without prior judicial
      process or bearing, and Seller hereby expressly waive, to the extent
      permitted by law, any right Seller might otherwise have to require Buyer
      to enforce its rights by judicial process. Seller also waives, to the
      extent permitted by law, any defense Seller might otherwise have to the
      Obligations, arising from use of nonjudicial process, enforcement and sale
      of all or any portion of the or Purchased Assets and any other Collateral
      or from any other election of remedies, Seller recognizes that nonjudicial
      remedies are consistent with the usages of the trade, are responsive to
      commercial necessity and are the result of a bargain at arm's length.

      Buyer shall have all the rights and remedies provided herein, provided by
      applicable federal, state, foreign, and local laws in equity, and under
      any other agreement between Seller and Buyer.

      Upon the occurrence of an Event of Default, Buyer shall have the right to
      exercise any of its rights and/or remedies without presentment, demand,
      protest or further notice of any kind, all of which are hereby expressly
      waived by Seller.

20.   DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE.

      No failure on the part of Buyer to exercise, and no delay in exercising,
      any right, power or remedy hereunder shall operate as a waiver thereof,
      nor shall any single or partial exercise by Buyer of any right, power or
      remedy hereunder preclude any other or further exercise thereof or the
      exercise of any other right, power or

                                     - 29 -
<PAGE>
      remedy. All rights and remedies of Buyer provided for herein are
      cumulative and in addition to any and all other rights and remedies
      provided bylaw, the Program Documents and the other instruments and
      agreements contemplated hereby and thereby, and are not conditional or
      contingent on any attempt by Buyer to exercise any of its rights under any
      other related document. Buyer may exercise at any time after the
      occurrence of an Event of Default one or more remedies, as it so desires,
      and may thereafter at any time and from time to time exercise any other
      remedy or remedies.

21.   USE OF EMPLOYEE PLAN ASSETS.

      If assets of an employee benefit plan subject to any provision of the
      Employee Retirement Income Security Act of 1974, as amended ("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.

22.   INDEMNITY.

      The powers conferred on Buyer hereunder are solely for its protection and
      do not impose any duty on it to exercise any such powers. Following the
      occurrence of an Event of Default, Buyer shall have no duty of care to
      Seller as to any Purchased Asset or any other Collateral or with respect
      to the taking of any necessary steps to preserve rights against other
      parties, or any other obligation pertaining to such Purchased Asset or
      Collateral. Seller and Seller's successors and assigns waive all rights
      whatsoever against Buyer for any loss, expense, liability or damage Seller
      may suffer as a result of actions taken pursuant to the Program Documents,
      including those arising under any "mortgagee in possession" or similar
      doctrine. Seller agrees to, and shall, indemnify Buyer, Agent, their
      respective Affiliates and their respective officers, directors, partners,
      employees, representatives and agents (collectively, the "Indemnified
      Parties", each an "Indemnified Party") from, and hold each of them
      harmless against, (i) any and all losses, liabilities, claims, damages,
      judgments, penalties, suits, actions, costs, disbursements or expenses
      ("losses", including, but not limited to, attorneys' fees, legal expenses
      and the allocated cost of internal counsel) whether or not suit is brought
      and settlement costs imposed on, asserted against or incurred by any of
      them as a result of, or arising out of, or in any way related to, or by
      reason of, any investigation, litigation or other proceeding (whether or
      not such Indemnified Party is a party thereto) relating to, resulting from
      or arising out of any of the Program Documents and all other documents
      related thereto, any breach of a representation or warranty of Seller or
      Seller's officer in this Agreement or any other Program Document, and all
      actions taken pursuant thereto (but excluding any such Losses to the
      extent incurred by reason of gross negligence or willful misconduct on the
      part of the h Party to be indemnified) and (ii) any imposition of

                                     - 30 -
<PAGE>
      taxes (excluding taxes based on net income of Buyer imposed by the
      jurisdiction under the laws of which Buyer is organized or maintains an
      office) for the frill amount of such taxes paid by Buyer or Agent and any
      liability (including penalties, interest, additions to tax and expenses)
      arising therefrom or with respect thereto, whether or not such taxes were
      correctly or legally asserted. Payment under this indemnification shall be
      made within 30 days after the date the Buyer makes written demand
      therefor. In addition, Seller shall compensate and indemnify Buyer and
      Agent for all reasonable costs, expenses, loss and other liabilities that
      Buyer may sustain in connection with the protection of Buyer's rights
      under or the enforcement of the Program Documents or any other documents
      received by Buyer or Custodian in connection therewith. Seller agrees to
      pay, and reimburse Buyer, Agent and Custodian for, (i) all fees and taxes
      in connection with the recording or filing of instruments and documents in
      public offices, payment or discharge of any taxes or liens upon or in
      respect of the Purchased Assets, (ii) any present or future stamp or
      documentary taxes or any other excise or property taxes, charges or
      similar levies which arise from any payment made hereunder or from the
      execution, delivery or registration of, or otherwise with respect to, this
      Agreement or any other Program Documents, and (iii) all other fees, costs
      and other expenses in connection with protecting, maintaining or
      preserving the Purchased Assets and Buyer's interest therein, whether
      through judicial proceedings or otherwise, or in defending or prosecuting
      any actions, suits or proceedings arising out of or relating to the
      Purchased Assets. Seller's indemnity obligations contained in this
      Paragraph 22 shall continue in full force and effect notwithstanding the
      full payment of all Obligations and notwithstanding the discharge thereof
      or termination of this Agreement.

23.   WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS.

      Seller hereby expressly waives, to the fullest extent permitted bylaw,
      every statute of limitation on a deficiency judgment, any reduction in the
      proceeds of any Purchased Assets as a result of restrictions upon Buyer or
      Custodian contained in the Program Documents or any other instrument
      delivered in connection therewith, and any right that it may have to
      direct the order in which any of the Purchased Assets shall be disposed of
      in the event of any disposition pursuant hereto.

24.   REIMBURSEMENT.

      All sums expended by Buyer in connection with the exercise of any right or
      remedy provided for herein shall be and remain Seller's obligation. Seller
      agrees to pay, with interest at the Default Rate to the extent that an
      Event of Default has occurred, the reasonable out-of-pocket expenses and
      reasonable attorneys' fees incurred by Buyer, Agent and Custodian in
      connection with the preparation, negotiation, administration and
      enforcement of the Program Documents, the taking of any action, including
      legal action, required or permitted to be taken by Buyer, Agent and/or
      Custodian pursuant thereto, any "due diligence" or Loan Agent reviews
      conducted by Agent or on its behalf or any refinancing or

                                     - 31 -
<PAGE>
      restructuring in the nature of a "workout". If Buyer determines that, due
      to the introduction of, any change in, or the compliance by Buyer with (1)
      the Eurocurrency Reserve Requirement or (ii) the interpretation of any
      law, regulation or any guideline or request from any central bank or other
      Governmental Authority (whether or not having the force of law), there
      shall be an increase in the cost to Buyer in engaging in the present or
      any fixture Transactions, then Seller agrees to pay to Buyer, from time to
      time, upon demand by Buyer (with a copy to Custodian) the actual cost of
      additional amounts as specified by Buyer to compensate Buyer for such
      increased costs.

25.   FURTHER ASSURANCES.

      Seller agrees to do such further acts and things and to execute and
      deliver to Buyer such additional assignments, acknowledgments, agreements,
      powers and instruments as are reasonably required by Buyer to carry into
      effect the intent and purposes of this Agreement, to perfect the interests
      of Buyer in the Purchased Assets or to better assure and confirm unto
      Buyer its rights, powers and remedies hereunder.

26.   ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION.

      This Agreement supersedes and integrates all previous negotiations,
      contracts, agreements and understandings between the parties relating to a
      sale and repurchase of Purchased Assets and Additional Purchased Assets
      thereto, and it, together with the other Program Documents, each
      Confirmation, and the other documents delivered pursuant hereto or
      thereto, contains the entire final agreement of the parties. No prior
      negotiation, agreement, understanding or prior contract shall have any
      validity hereafter.

27.   TERMINATION.

      This Agreement shall remain in effect until the earlier of (i) the Final
      Repurchase Date and (ii) at the Buyer's option, the occurrence of an Event
      of Default. However, no such termination shall affect Seller's outstanding
      obligations to Buyer at the time of such termination. Seller's obligations
      to indemnify Buyer pursuant to this Agreement shall survive the
      termination hereof. The Seller may request in writing a renewal of this
      Agreement no earlier than 150 days prior to the Termination Date. The
      Buyer shall respond to such request within 30 days as to whether the
      request has been approved. Any such renewal shall be determined by the
      Buyer in its sole discretion.

28.   ASSIGNMENT.

      The Program Documents are not assignable by Seller. Buyer may from time to
      time assign all or a portion of its rights and obligations under this
      Agreement and the Program Documents; provided, however that Buyer shall
      maintain, for review by Seller upon written request, a register of
      assignees and a copy of an executed

                                     - 32 -
<PAGE>
      assignment and acceptance by Buyer and assignee ("Assignment and
      Acceptance"), specifying the percentage or portion of such rights and
      obligations assigned. Upon such assignment, (a) such assignee shall be a
      party hereto and to each Program Document to the extent of the percentage
      or portion set forth in the Assignment and Acceptance, and shall succeed
      to the applicable rights and obligations of Buyer hereunder, and (b) Buyer
      shall, to the extent that such rights and obligations have been so
      assigned by it to either (i) an Affiliate of Buyer which assumes the
      obligations of Buyer and is of equivalent creditworthiness (as determined
      by Seller in its sole discretion) or (ii) to another Person approved by
      Seller (such approval not to be unreasonably withheld) which assumes the
      obligations of Buyer, be released from its obligations hereunder and under
      the Program Documents. Unless otherwise stated in the Assignment and
      Acceptance, Seller shall continue to take directions solely from Buyer
      unless otherwise notified by Buyer in writing. Buyer may distribute to any
      prospective assignee any document or other information delivered to Buyer
      by Seller.

29.   AMENDMENTS, ETC.

      No amendment or waiver of any provision of this Agreement nor any consent
      to any failure to comply herewith or therewith shall in any event be
      effective unless the same shall be in writing and signed by Seller and
      Buyer, and then such amendment, waiver or consent shall be effective only
      in the specific instance and for the specific purpose for which given.

30.   SEVERABILITY.

      If any provision of Program Document is declared invalid by any court of
      competent jurisdiction, such invalidity shall not affect any other
      prevision of the Program Documents, and each Program Document shall be
      enforced to the fullest extent permitted by law.

31.   BINDING EFFECT; GOVERNING LAW.

      This Agreement shall be binding and inure to the benefit of the parties
      hereto and their respective successors and assigns, except that Seller may
      not assign or transfer any of its rights or obligations under this
      Agreement, Confirmation or any other Program Document without the prior
      written consent of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
      WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING
      EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

32.   CONSENT TO JURISDICTION.

      SELLER HEREBY WAIVES TRIAL BY JURY. SELLER HEREBY IRREVOCABLY CONSENTS TO
      THE NON-EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR
      IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW

                                     - 33 -
<PAGE>
      YORK, ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR
      PROCEEDING. SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION SELLER MAY
      HAVE TO, PERSONAL JURISDICTION AND VENUE EN THE COURTS OF THE STATE OF NEW
      YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
      YORK WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE
      PROGRAM DOCUMENTS.

33.   SINGLE AGREEMENT.

      Seller and Buyer 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, Seller and Buyer each agree (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, and (ii) 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 transfer in respect of any other
      Transaction hereunder, and the obligations to make any such payments,
      deliveries and other transfers may be applied against each other and
      netted.

34.   INTENT.

      Seller and Buyer 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 ("USC") (except insofar as the Loans
      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 USC (except insofar as the Loans
      subject to such Transaction or the term of such Transaction would render
      such definition inapplicable).

      It is understood that Buyer right to liquidate the Purchased Assets
      delivered to it in connection with the Transactions hereunder or to
      exercise any other remedies pursuant to Paragraph 20 hereof is a
      contractual right to liquidate such Transaction as described in Sections
      555 and 559 of Title 112 of the USC.

      Seller and Buyer agree and acknowledge that if Seller is an "insured
      deposit 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, order or policy statements thereunder (except insofar as the Loans
      subject such to such Transaction would render such definition
      inapplicable).

                                     - 34 -
<PAGE>
      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).

35.   NOTICES AND OTHER COMMUNICATIONS.

      Any notice required or permitted by this Agreement shall be in writing and
      shall be effective and deemed delivered only when received by the party to
      which it is sent; provided, however, that a facsimile transmission shall
      be deemed to be received when transmitted so long as the transmitting
      machine has provided an electronic confirmation of such transmission. Any
      such notice shall be sent to a party at the address or facsimile
      transmission number set forth in the signature page of the Custodial
      Agreement, as such address or number may be changed by.

                                     - 35 -
<PAGE>
      IN WITNESS WHEREOF, Seller and Buyer have caused their names to be signed
to this Master Repurchase Agreement by their respective officers thereunto duly
authorized as of the date first above written.

<TABLE>
<S>                                 <C>
                                    ARBOR COMMERCIAL MORTGAGE, LLC,
                                    AS SELLER

                                    By: /s/ Frederick C. Herbst
                                        ------------------------------------
                                    Name: Frederick C. Herbst
                                          ----------------------------------
                                    Title: Chief Financial Officer
                                           ---------------------------------

                                    NOMURA CREDIT & CAPITAL, INC.,
                                    AS BUYER AND AGENT, AS APPLICABLE

                                    By: /s/ James. K. Lieblich
                                        ------------------------------------
                                    Name: James K. Lieblich
                                          ----------------------------------
                                    Title: President
                                           ---------------------------------
</TABLE>

                                     - 37 -
<PAGE>
                                     ANNEX I

                              BUYER ACTING AS AGENT

      This Annex I forms a part of the Master Repurchase Agreement dated as of
_____________, 20__ (the "Agreement") between ____________________ and
________________. This Annex I sets forth the terms and conditions governing all
transactions in which a party selling assets or buying assets, as the case may
be ("Agent"), in a Transaction is acting as agent for one or more third parties
(each, a "Principal"). Capitalized terms used but not defined in this Annex I
shall have the meanings ascribed to them in the Agreement.

1.    ADDITIONAL REPRESENTATIONS.

      Agent hereby makes the following representations, which shall continue
      during the term of any Transaction: Principal has duly authorized Agent to
      execute and deliver the Agreement on its behalf, has the power to so
      authorize Agent and to enter into the Transactions contemplated by the
      Agreement and to perform the obligations of Seller or Buyer, as the case
      may be, under such Transactions, and has taken all necessary action to
      authorize such execution and delivery by Agent and such performance by it.

2.    IDENTIFICATION OF PRINCIPALS.

      Agent agrees (a) to provide the other party, prior to the date on which
      the parties agree to enter into any Transaction under the Agreement, with
      a written list of Principals for which it intends to act as Agent (which
      list may be amended in writing from time to time with the consent of the
      other party), and (b) to provide the other party, before the close of
      business on the next business day after orally agreeing to enter into a
      Transaction, with notice of the specific Principal or Principals for whom
      it is acting in connection with such Transaction. If (1) Agent fails to
      identify such Principal or Principals prior to the close of business on
      such next business day or (ii) the other party shall determine in its sole
      discretion that any Principal or Principals identified by Agent are not
      acceptable to it, the other party may reject and rescind any Transaction
      with such Principal or Principals, return to Agent any Purchased Assets or
      portion of the Purchase Price, as the case may be, previously transferred
      to the other party and refuse any further performance under such
      Transaction, and Agent shall immediately return to the other party any
      portion of the Purchase Price or Purchased Assets, as the case may be,
      previously transferred to Agent in connection with such Transaction;
      provided, however, that (A) the other party shall promptly (and in any
      event within one business day) notify Agent of its determination to reject
      and rescind such Transaction and (B) to the extent that any performance
      was rendered by any party under any Transaction rejected by the other
      party, such party shall remain entitled to any Price Differential or other
      amounts that would have been payable to it with respect to such
      performance if such Transaction had not been rejected. The other party
      acknowledges that Agent shall not have any obligation to provide

                                     - 37 -
<PAGE>
      it with confidential information regarding the financial status of its
      Principals; Agent agrees, however, that it will assist the other party in
      obtaining front Agent's Principals such information regarding the
      financial status of such Principals as the other party may reasonably
      request.

3.    LIMITATION OF AGENT'S LIABILITY.

      The parties expressly acknowledge that if the representations of Agent
      under the Agreement, including this Annex I, are true and correct in all
      material respects during the term of any Transaction and Agent otherwise
      complies with the provisions of this Annex I, then (a) Agent's obligations
      under the Agreement shall not include a guarantee of performance by its
      Principal or Principals and (b) the other part remedies shall not include
      a right of setoff in respect of rights or obligations, if any, of Agent
      arising in other transactions in which Agent is acting as principal.

4.    MULTIPLE PRINCIPALS.

      a.    In the event that Agent proposes to act for more than one Principal
            hereunder, Agent and the other party shall elect whether (i) to
            treat Transactions under the Agreement as transactions entered into
            on behalf of separate Principals or (ii) to aggregate such
            Transactions as if they were transactions by a single Principal.
            Failure to make such an election in writing shall be deemed an
            election to treat Transactions under the Agreement as transactions
            on behalf of separate Principals.

      b.    In the event that Agent and the other party elect (or are deemed to
            elect) to treat Transactions under the Agreement as transactions on
            behalf of separate Principals, the parties agree that (i) Agent will
            provide the other party, together with the notice described in
            Paragraph 2(b) of this Annex I, notice specifying the portion of
            each Transaction allocable to the account of each of the Principals
            for which it is acting (to the extent that any such Transaction is
            allocable to the account of more than one Principal); (ii) the
            portion of any individual Transaction allocable to each Principal
            shall be deemed a separate Transaction under the Agreement (iii) the
            margin maintenance obligations of Seller under Paragraph 6(a) of the
            Agreement shall be determined on a Transaction-by-Transaction basis
            (unless the parties agree to determine such obligations on a
            Principal-by-Principal basis); and (iv) Buyer's and Seller's
            remedies under the Agreement upon the occurrence of an Event of Del
            nit shall be determined as if Agent had entered into a separate
            Agreement with the other party on behalf of each of its Principals.

      c.    In the event that Agent and the other party elect to treat
            Transactions under the Agreement as if they were transactions by a
            single Principal, the parties agree that (i) Agent's notice under
            Paragraph 2(b) of this Annex I need only identify the names of its
            Principals but not the portion of each

                                     - 38 -
<PAGE>
            Transaction allocable to each Principal's account; (ii) the margin
            maintenance obligations of Seller under Paragraph 6(a) of the
            Agreement shall, subject to any greater requirement imposed by
            applicable law, be determined on an aggregate basis for alt
            Transactions entered into by Agent on behalf of any Principal; and
            (iii) Buyer's and Seller's remedies upon the occurrence of an Event
            of Default shall be determined as if all Principals were a single
            Seller or Buyer, as the case may be.

      d.    Notwithstanding any other provision of the Agreement (including,
            without limitation, this Annex I), the parties agree that any
            Transactions by Agent on behalf of an employee benefit plan under
            ERISA shall be treated as Transactions on behalf of separate
            Principals in accordance with Paragraph 4(b) of this Annex I (and
            all margin maintenance obligations of the parties shall be
            determined on a Transaction-by-Transaction basis).

5.    INTERPRETATION OF TERMS.

      All references to "Seller" or "Buyer", as the case may be, in the
      Agreement shall, subject to the provisions of this Annex I (including,
      among other provisions, the limitations on Agent's liability in Paragraph
      3 of this Annex I be construed to reflect that (i) each Principal shall
      have, in connection with any Transaction or Transactions entered into by
      Agent on its behalf, the rights, responsibilities, privileges and
      obligations of a "Seller" or "Buyer", as the case may be, directly
      entering into such Transaction or Transactions with the other party under
      the Agreement, and (ii) Agent's Principal or Principals have designated
      Agent as their sole agent for performance of Seller's obligations to Buyer
      or Buyer's obligations to Seller, as the case may be, and for receipt of
      performance by Buyer of its obligations to Seller or Seller of its
      obligations to Buyer, as the case may be, in connection with any
      Transaction or Transactions under the Agreement (including, among other
      things, as Agent for each Principal in connection with transfers of
      Securities, cash or other property and as agent for giving and receiving
      all notices under the Agreement) Both Agent and its Principal or
      Principals shall be deemed "parties" to the Agreement and all references
      to a "party" or "either party" in the Agreement shall be deemed revised
      accordingly.

                                     - 39 -<PAGE>

                                                                   EXHIBIT 10.15

                            ASSIGNMENT AND ASSUMPTION

                                    AGREEMENT

      This ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is made and
entered into as of this 1st day of July, 2003 (the "Effective Date") by and
between ARBOR COMMERCIAL MORTGAGE LLC (the "Assignor"), and Arbor Realty Limited
Partnership (the "Assignee").

      WHEREAS, the. Assignor and Nomura Credit & Capital, Inc. (the "Buyer")
have entered into a Master Repurchase Agreement dated as of November 18, 2002,
as amended as of July 1, 2003 (the "Repurchase Agreement") between the Assignor
and the Buyer.

      WHEREAS, the Repurchase Agreement permits the Assignor to assign its
rights and obligations under the Repurchase Agreement as provided thereunder;

      WHEREAS, the Assignor, the Buyer and U.S. Bank National Association (the
"Custodian") have entered into a Custodial Agreement dated as of November 18,
2002 (the "Custodial Agreement") for the custody, administration and servicing
of Loans underlying Purchased Assets;

      WHEREAS, Section 7.7 of the Custodial Agreement permits the Assignor to
assign its rights and obligations under the Custodial Agreement with the prior
written consent of the other parties thereto; and

      WHEREAS, on or prior to the Effective Date, the Assignor will contribute
to the Assignee the portfolio of Loans listed in Schedule 1 hereto, which Loans
have an aggregate principal balance of $86,603,234.00 on the Effective Date (the
"Contributed Loans") and, (ii) the Assignor will assign to the Assignee all its
rights and obligations under the Repurchase Agreement, the Custodial Agreement
and the other Program Documents (other than its rights and obligations to act as
Servicer for the Loans), and the Assignee has agreed to accept the pledge,
assignment and transfer of the foregoing.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

      Capitalized terms used and not otherwise defined herein shall have the
meaning assigned thereto in the Repurchase Agreement or the Custodial Agreement,
as applicable.

      Section 1. AGREEMENTS

      1.    Contribution, Assignment and Agreements. On or prior to the
            Effective Date, the Assignor shall contribute to the Assignee the
            Contributed Loans, and the Assignor shall assign to the Assignee all
            of its respective rights,
<PAGE>
            privileges, and any other interests, and obligations, as Seller
            under the Repurchase Agreement, the Custodial Agreement and the
            other Program Documents; provided that (subject to the second
            proviso below) the Assignor shall not assign to the Assignee any
            interest in the loan on the Professional Tower (an office building
            located in Miami, Florida) (the "Tower Loan"), which Tower Loan has
            an outstanding principal balance of $10,584,492 on the Effective
            Date, and is collateralized by a $8,800,000 Bridge Loan and a
            $1,784,792 Mezzanine Loan; and provided further that the Repurchase
            Agreement shall be deemed to remain in effect with respect to the
            Tower Loan from the Effective Date through the date on which the
            repurchase transactions contemplated by the letter agreement dated
            July 1, 2003 (the "Letter Agreement") by the Assignor, the Assignee
            and certain of their Affiliates are consummated. So long as any
            Purchased Asset shall remain subject to the Repurchase Agreement,
            the Assignor shall continue to act as Servicer with respect to the
            Loans underlying such Purchased Asset for the benefit of Buyer
            pursuant to and in accordance with the terms of the Custodial
            Agreement, the Repurchase Agreement and the other Program Documents.
            Following the repurchase of a Purchased Asset by the Assignee from
            the Buyer on or after the Effective Date, and the termination of the
            Repurchase Agreement with respect to such Purchased Asset, the
            Servicer shall continue to act as Servicer with respect to the Loans
            underlying such Purchased Asset, pursuant to and in accordance with
            the terms of the Custodial Agreement. To the extent of any
            inconsistency between the Custodial Agreement and the Services
            Agreement dated as of July 1, 2003 among Arbor Realty Trust, Inc.,
            the Assignee and the Assignor, the terms of the Custodial Agreement
            shall govern the servicing of Loans by the Assignor. The Buyer and
            the Custodian hereby consent to such assignment.

      2.    Purchased Assets. The Assignor hereby agrees to take all action
            necessary to amend any existing, or file any new, Uniform Commercial
            Code financing statements, necessary to maintain the first priority
            security interest of the Buyer to and in the Collateral. On and as
            of the Effective Date, the Assignee shall assume liability for any
            payment or other obligations under the Repurchase Agreement and the
            other Program Documents, including but not limited to, its
            obligations relating to Margin Calls, repurchase of Purchased
            Assets, and the payment of the expenses of the Custodian, and the
            Assignor, in its capacity as Servicer for the Loans. In addition, on
            and as of the Effective Date, the Assignee shall become entitled to
            any Income pursuant to, and as permitted by, the Repurchase
            Agreement and the other Program Documents.

      3.    Assumption. The Assignee hereby accepts the foregoing assignment,
            and hereby assumes and agrees to pay, perform or otherwise provide
            for any and all duties and obligations of the Assignor, as Seller,
            under and in accordance with the terms of the Repurchase Agreement,
            the Custodial Agreement and the other Program Documents.
<PAGE>
      4.    Further Assurances and Agreements. The Assignor and the Assignee
            further agree that, upon the reasonable request of the other or the
            Buyer, each will execute, acknowledge and deliver all such
            additional documents and instruments as may be reasonably necessary
            to carry out the purposes of this Agreement.

            The Assignor and the Assignee further understand and agree that the
            Events of Default set forth in Sections 18(q) and (r) of the
            Repurchase Agreement relating to change in Control and net worth
            have been amended as of July 1, 2003, pursuant to and as provided by
            Amendment No. One to the Repurchase Agreement.

      Section 2. REPRESENTATIONS AND WARRANTIES

      Each of the Assignor and the Assignee represents as of the Effective Date
as follows:

      1.    The Assignor and the Assignee each represents and warrants that the
            agreement attached hereto as Exhibit A is a true and accurate copy
            of the Repurchase Agreement. The Assignor represents and warrants
            that the Repurchase Agreement is in full force and effect as of the
            date hereof and the provisions of such Repurchase Agreement have not
            been waived, amended or modified (other than as therein provided),
            nor have notices of termination been given thereunder.

      2.    The Assignor and the Assignee each represents and warrants that the
            agreement attached hereto as Exhibit B is a true and accurate copy
            of the Custodial Agreement. The Assignor represents and warrants
            that the Custodial Agreement is in full force and effect as of the
            date hereof and the provisions of such Custodial Agreement have not
            been waived, amended or modified (other than as therein provided),
            nor have notices of termination been given thereunder.

      3.    Arbor Commercial Mortgage LLC, as Servicer, and the Assignee, as
            Seller pursuant to the Repurchase Agreement jointly and severally
            make, to the Buyer, Agent and each subsequent purchaser of the
            Loans, the representations and warranties set forth in Appendix A to
            the Custodial Agreement, and shall continue to make such
            representations as required under the Repurchase Agreement, the
            Custodial Agreement and the other Program Documents.

      The Assignor further warrants and represents to, and covenants with, the
Assignee as of the date hereof as follows:

      1.    The Assignor is duly organized, validly existing and in good
            standing under the laws of the jurisdiction of its formation;
<PAGE>
      2.    The Assignor has full power and authority to execute, deliver and
            perform its obligations under this Agreement, and to consummate the
            transactions set forth herein. The consummation of the transactions
            contemplated by this Agreement is in the ordinary course of the
            Assignor's business and will not conflict with, or result in a
            breach of, any of the terms, conditions or provisions of the
            Assignor's certificate of formation or operating agreement or any
            legal restriction, or any material agreement or instrument to which
            the Assignor is now a party or by which it is bound, or result in
            the violation of any law, rule, regulation, order, judgment or
            decree to which the Assignor or its property is subject. The
            execution, delivery and performance by the Assignor of this
            Agreement and the consummation by it of the transactions
            contemplated hereby, have been duly authorized by all necessary
            action on the part of the Assignor. This Agreement has been duly
            executed and delivered by the Assignor and, upon the due
            authorization, execution and delivery by the Assignor and the
            Assignee, will constitute the valid and legally binding obligation
            of the Assignor enforceable against the Assignor in accordance with
            its terms except as enforceability may be limited by bankruptcy,
            reorganization, insolvency, moratorium or other similar laws now or
            hereafter in effect relating to creditors' rights generally, and by
            general principles of equity regardless of whether enforceability is
            considered in a proceeding in equity or at law;

      3.    No material consent, approval, order or authorization of, or
            declaration, filing or registration with, any governmental entity is
            required to be obtained or made by the Assignor in connection with
            the execution, delivery or performance by the Assignor of this
            Agreement, or the consummation by it of the transactions
            contemplated hereby; and

      4.    There is no action, suit, proceeding, investigation or litigation
            pending or, to the Assignor's knowledge, threatened, which either in
            any instance or in the aggregate, if determined adversely to the
            Assignor, would adversely affect the Assignor's execution or
            delivery of, or the enforceability of, this Agreement, or the
            Assignor's ability to perform its obligation under this Agreement.

      The Assignee further warrants and represents to, and covenants with, the
Assignor as of the date hereof as follows:

      1.    The Assignee is a limited partnership duly organized, validly
            existing and in good standing under the laws of the jurisdiction of
            its formation and has all requisite power and authority to acquire,
            own, sell, repurchase and otherwise dispose of Purchased Assets;

      2.    The Assignee has full power and authority to execute, deliver and
            perform its obligations under this Agreement, and to consummate the
            transactions set forth herein. The consummation of the transactions
            contemplated by
<PAGE>
            this Agreement is in the ordinary course of the Assignee's business
            and will not conflict with, or result in a breach of, any of the
            terms, conditions or provisions of the Assignee's limited
            partnership agreement or any legal restriction, or any material
            agreement or instrument to which the Assignee is now a party or by
            which it is bound, or result in the violation of any law, rule,
            regulation, order, judgment or decree to which the Assignee or its
            property is subject. The execution, delivery and performance by the
            Assignee of this Agreement and the consummation by it of the
            transactions contemplated hereby, have been duly authorized by all
            necessary limited partnership action on the part of the Assignee.
            This Agreement has been duly executed and delivered by the Assignee
            and, upon the due authorization, execution and delivery by the
            Assignor and the Assignee, will constitute the valid and legally
            binding obligation of the Assignee enforceable against the Assignee
            in accordance with its terms except as enforceability may be limited
            by bankruptcy, reorganization, insolvency, moratorium or other
            similar laws now or hereafter in effect relating to creditors'
            rights generally, and by general principles of equity regardless of
            whether enforceability is considered in a proceeding in equity or at
            law;

      3.    No material consent, approval, order or authorization of, or
            declaration, filing or registration with, any governmental entity is
            required to be obtained or made by the Assignee in connection with
            the execution, delivery or performance by the Assignee of this
            Agreement, or the consummation by it of the transactions
            contemplated hereby;

      4.    There is no action, suit, proceeding, investigation or litigation
            pending or, to the Assignee's knowledge, threatened, which either in
            any instance or in the aggregate, if determined adversely to the
            Assignee, would adversely affect the Assignee's execution or
            delivery of, or the enforceability of, this Agreement, or the
            Assignee's ability to perform its obligation under this Agreement;

      5.    The Assignee agrees to be bound by all of the terms, covenants and
            conditions of the Repurchase Agreement, the Custodial Agreement and
            the other Program Documents;

      6.    The Assignee is solvent and will not be rendered insolvent by the
            transactions contemplated by this Agreement and after giving effect
            to such transactions, the Assignee will not be left with an
            unreasonably small amount of capital with which to engage in its
            business; and

      7.    The Assignee is not required to be registered as an "investment
            company" as defined under the Investment Company Act nor as an
            entity under the control of an "investment company" as defined under
            the Investment Company Act.
<PAGE>
      Section 3. CONDITIONS PRECEDENT

      As conditions precedent to the execution and delivery of this Agreement
and the issuance by the Buyer of its written consent to the assignment by the
Assignor of all its rights and obligations as Seller under the Repurchase
Agreement to the Assignee, the Buyer shall have received, in form satisfactory
to the Buyer:

      1.    This Agreement, duly authorized and executed by the Assignor, the
            Assignee and the Custodian;

      2.    Evidence that all other actions necessary or, in the opinion of the
            Buyer, desirable to perfect and protect the Buyer's interest in the
            Purchased Assets and other Collateral have been taken, including,
            without limitation, the filing of new, or the amendment of existing,
            Uniform Commercial Code financing statements on Form UCC-1 or other
            applicable Form;

      3.    Written confirmation by the Assignee, which shall be accompanied by
            a certificate of an authorized officer of the Assignor that (i) the
            Assignor has made, and the Assignee has received, the Contributed
            Loans, (ii) the offering described in that Preliminary Offering
            Memorandum dated June 27, 2003 with respect to the stock offering by
            Arbor Realty Trust, Inc. has been completed, and that a portion of
            the proceeds thereof has been contributed by Arbor Realty Trust,
            Inc. in cash to the Assignee, and that such cash contribution has
            been deposited in that certain bank account no. 7424022551 at North
            Fork Bank and (iii) any other related required payments under
            paragraphs (i) and (ii) above have been made and received by the
            appropriate parties;

      4.    An opinion of Cullen and Dykman, counsel to the Assignee, as to the
            transactions contemplated by this Agreement, in a form satisfactory
            to the Buyer;

      5.    A certified copy of the Assignee's limited partnership resolutions
            approving this Agreement and the Program Documents and Transactions
            thereunder (either specifically or by general resolution), and all
            documents evidencing other necessary limited partnership action or
            governmental approvals as may be required in connection with this
            Agreement and the Program Documents;

      6.    An incumbency certificate of the Seller's general partner certifying
            the names, true signatures and titles of the Seller's
            representatives duly authorized to request Transactions hereunder
            and to execute this Agreement and the Program Documents, as
            applicable, and the other documents to be delivered hereunder;

      7.    No Default or Event of Default shall have occurred, both immediately
            before and after the execution and delivery of this Agreement and
            the Program Documents by the Assignor and/or the Assignee, as
            applicable;
<PAGE>
      8.    Arbor Realty Trust, Inc. shall have issued a Guaranty in the form
            attached hereto as Exhibit A to guarantee the Obligations of the
            Assignee under the Repurchase Agreement and any other obligations of
            the Assignee under this Agreement; and

      9.    As of the close of business on the Effective Date, the Assignee
            shall have a new worth of at least $140 million.

      Section 4. COUNTERPARTS

      This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, and all of which, taken together, shall constitute
one and the same instrument, which may be sufficiently evidenced by one
counterpart.

      Section 5. SUCCESSORS AND ASSIGNS

      This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their successors and permitted assignees.

      Section 6. APPLICABLE LAW

      This Agreement shall be governed by, interpreted under and construed in
accordance with the laws of the state of New York, without regard to the
conflicts of law principles thereof.

                            (Signature Page Follows)
<PAGE>
      IN WITNESS WHEREOF, the Assignor and the Assignee have executed and
delivered this Agreement as of the day and year first above written.

                                    ARBOR COMMERCIAL MORTGAGE LLC

                                    By:     /s/ John Natalone
                                            -------------------------------
                                    Name:   John Natalone
                                            -------------------------------
                                    Title:  Vice President, Treasurer
                                            -------------------------------

                                    ARBOR REALTY LIMITED

                                    PARTNERSHIP

                                    By:     /s/ Frederick C. Herbst
                                            -------------------------------
                                    Name:   Frederick C. Herbst
                                            -------------------------------
                                    Title:  Chief Financial Officer
                                            -------------------------------

Acknowledged and Agreed:

                                    NOMURA CREDIT & CAPITAL, INC.

                                    By:     /s/ James K. Lieblich
                                            -------------------------------
                                    Name:   James K. Lieblich
                                            -------------------------------
                                    Title:  President
                                            -------------------------------

                                    U.S. BANK NATIONAL ASSOCIATION

                                    By:     /s/ Charles F. Pedersen
                                            -------------------------------
                                    Name:   Charles F. Pedersen
                                            -------------------------------
                                    Title:  Vice President
                                            -------------------------------

                                      S-1
<PAGE>
                                   Schedule 1

                             List of Assigned Loans

NOMURA ASSETS TRANSFERRING TO ART

<TABLE>
<CAPTION>
PROPERTY               TYPE                     UPB            AMOUNT FINANCED
--------               ----                     ---            ---------------
<S>                    <C>                    <C>              <C>
CDS-Portfolio          Mezz                    $4,991,001.00       $3,743,250.75
Schron                 Mezz                   $10,800,000.00       $8,468,177.40
Scron II               Mezz                    $8,500,000.00       $6,664,769.25
Grand Plaza            Bridge                 $25,382,233.00      $20,281,974.40
Tropical Gardens       Bridge                  $8,800,000.00       $7,040,000.00
Dylan Hotel            Bridge                 $14,000,000.00      $11,900,000.00
Concord & Henry        Bridge                  $5,000,000.00       $4,000,000.00
Palmetto Village       Bridge                  $9,130,000.00       $7,304,000.00

TOTAL                                         $86,603,234.00      $69,402,171.80
</TABLE>

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