Document:

<PAGE>
                                                                   EXHIBIT 10.12

GMAC Residential Funding

                     STRUCTURED FACILITY WAREHOUSING CREDIT
                             AND SECURITY AGREEMENT

                                     BETWEEN

                        ARBOR REALTY LIMITED PARTNERSHIP,
                         A DELAWARE LIMITED PARTNERSHIP

                                       AND

                        RESIDENTIAL FUNDING CORPORATION,
                             A DELAWARE CORPORATION

                            DATED AS OF JULY 1, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                               <C>
1.       THE CREDIT............................................................................................    2-1
         1.1.  The Structured Facility Commitment..............................................................    2-1
         1.2.  Expiration of Structured Facility Commitment....................................................    2-1
         1.3.  Structured Facility Note........................................................................    2-2
2.       PROCEDURES FOR OBTAINING ADVANCES.....................................................................    2-1
         2.1.  Structured Facility Advances....................................................................    2-1
3.       INTEREST, PRINCIPAL AND FEES..........................................................................    3-1
         3.1.  Interest  ......................................................................................    3-1
         3.2.  Interest Limitation.............................................................................    3-2
         3.3.  Principal Payments..............................................................................    3-2
         3.4.  Buydowns .......................................................................................    3-4
         3.5.  Structured Facility Commitment Fees; Exit Fees; Profit Sharing..................................    3-5
         3.6.  Miscellaneous Fees and Charges..................................................................    3-5
         3.7.  Overdraft Advances..............................................................................    3-5
         3.8.  Method of Making Payments.......................................................................    3-6
4.       COLLATERAL............................................................................................    4-1
         4.1.  Grant of Security Interest......................................................................    4-1
         4.2.  Maintenance of Collateral Records...............................................................    4-2
         4.3.  Release of Security Interest in Pledged Investments and Pledged Securities......................    4-2
         4.4.  Collection and Servicing Rights.................................................................    4-3
         4.5.  Return of Collateral at End of Commitments......................................................    4-4
         4.6.  Delivery of Collateral Documents................................................................    4-4
         4.7.  Borrower Remains Liable.........................................................................    4-4
         4.8.  Further Assurance...............................................................................    4-5
5.       CONDITIONS PRECEDENT..................................................................................    5-1
         5.1.  Initial Advance.................................................................................    5-1
         5.2.  Each Advance....................................................................................    5-2
         5.3.  Structured Facility Advances to Finance Preferred Equity Interests..............................    5-3
         5.4.  Force Majeure...................................................................................    5-3
6.       GENERAL REPRESENTATIONS AND WARRANTIES................................................................    6-1
         6.1.  Place of Business...............................................................................    6-1
         6.2.  Organization; Good Standing; Subsidiaries.......................................................    6-1
         6.3.  Authorization and Enforceability................................................................    6-1
         6.4.  Authorization and Enforceability of Guaranty....................................................    6-2
         6.5.  Approvals ......................................................................................    6-2
         6.6.  Financial Condition.............................................................................    6-2
         6.7.  Litigation......................................................................................    6-2
         6.8.  Compliance with Laws............................................................................    6-2
         6.9.  Regulation U....................................................................................    6-3
         6.10. Investment Company Act..........................................................................    6-3
         6.11. Payment of Taxes................................................................................    6-3
         6.12. Agreement ......................................................................................    6-3
         6.13. Title to Properties.............................................................................    6-3
         6.14. ERISA ..........................................................................................    6-4
         6.15. No Retiree Benefits.............................................................................    6-4
         6.16. Assumed Names...................................................................................    6-4
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                               <C>
7.       AFFIRMATIVE COVENANTS.................................................................................    7-1
         7.1.  Payment of Obligations..........................................................................    7-1
         7.2.  Other Borrower Reports..........................................................................    7-1
         7.3.  Maintenance of Existence; Conduct of Business...................................................    7-2
         7.4.  Compliance with Applicable Laws.................................................................    7-3
         7.5.  Inspection of Properties and Books; Operational Reviews.........................................    7-3
         7.6.  Notice .........................................................................................    7-3
         7.7.  Payment of Debt, Taxes and Other Obligations....................................................    7-4
         7.8.  Insurance ......................................................................................    7-4
         7.9.  Subordination of Certain Indebtedness...........................................................    7-4
         7.10. Other Loan Obligations..........................................................................    7-4
         7.11. ERISA ..........................................................................................    7-5
         7.12. Hedging Arrangements............................................................................    7-5
         7.13. Closing Instructions............................................................................    7-5
         7.14. Use of Proceeds of Structured Facility Advances.................................................    7-5
8.       NEGATIVE COVENANTS....................................................................................    8-1
         8.1.  Contingent Liabilities..........................................................................    8-1
         8.2.  Pledge of Servicing Contracts...................................................................    8-1
         8.3.  Restrictions on Fundamental Changes.............................................................    8-1
         8.4.  Deferral of Subordinated Debt...................................................................    8-1
         8.5.  Accounting Changes..............................................................................    8-2
         8.6.  Leverage Ratio..................................................................................    8-2
         8.7.  Minimum Modified Net Worth......................................................................    8-2
         8.8.  Minimum Liquid Assets...........................................................................    8-2
         8.9.  Portfolio Performance Ratio.....................................................................    8-2
         8.10. Profitability...................................................................................    8.2
         8.11. Distributions to Members........................................................................    8-2
         8.12  Transactions with Affiliates....................................................................    8-2
         8.13. Servicing Contracts.............................................................................    8-3
9.       SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL...............................    9-1
         9.1.  Special Affirmative Covenants Concerning Collateral.............................................    9-1
         9.2.  Special Negative Covenants Concerning Collateral................................................    9-3
         9.3.  Special Representations and Warranties Concerning Servicing Collateral..........................    9-4
         9.4.  Special Representations Concerning Multifamily Properties.......................................    9-4
         9.5.  Special Representations Concerning Pledged Shares...............................................    9-5
10.      DEFAULTS; REMEDIES....................................................................................   10-1
         10.1.    Events of Default............................................................................   10-1
         10.2.    Remedies.....................................................................................   10-2
         10.3.    Application of Proceeds......................................................................   10-4
         10.4.    Lender Appointed Attorney-in-Fact............................................................   10-4
         10.5.    Right of Set-Off.............................................................................   10-5
11.      MISCELLANEOUS.........................................................................................   11-1
         11.1.    Notices......................................................................................   11-1
         11.2.    Reimbursement Of Expenses; Indemnity.........................................................   11-1
         11.3.    Financial Information........................................................................   11-2
         11.4.    Terms Binding Upon Successors; Survival of Representations...................................   11-2
         11.5.    Assignments and Participations...............................................................   11-2
         11.6.    Amendments...................................................................................   11-3
         11.7.    Governing Law................................................................................   11-3
         11.8.    Confidentiality..............................................................................   11-3
         11.9.    Relationship of the Parties..................................................................   11-3
         11.10.   Severability.................................................................................   11-4
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                               <C>
         11.11.   Operational Reviews..........................................................................   11-4
         11.12.   Consent to Credit References.................................................................   11-4
         11.13.   Counterparts.................................................................................   11-4
         11.14.   Headings/Captions............................................................................   11-4
         11.15.   Entire Agreement.............................................................................   11-4
         11.16.   Consent to Jurisdiction......................................................................   11-4
         11.17.   Waiver of Jury Trial.........................................................................   11-5
         11.18.   Waiver of Punitive, Consequential, Special or Indirect Damages...............................   11-5
12.      ASSIGNMENT OF INITIAL ELIGIBLE INVESTMENTS............................................................   12-1
         12.1.    Assignment and Assumption....................................................................   12-1
13.      DEFINITIONS...........................................................................................   13-1
         13.1.    Defined Terms................................................................................   13-1
         13.2.    Other Definitional Provisions; Terms of Construction.........................................  13-14
</TABLE>

<PAGE>

                                    EXHIBITS

Exhibit A-MF               Request for Structured Facility Advance Against Note
                           Acquisition Loans or Bridge Mortgage Loans
                           (Multifamily and Commercial Mortgage Loans)

Exhibit A-MF/APP           Approval Request for Structured Facility Advance

Exhibit A-MF/MEZ           Request for Structured Facility Advance Against
                           Mezzanine Investment

Exhibit A-PA               Property Acquisition Advance Request

Exhibit B-MF/NA            Procedures and Documentation for Warehousing Note
                           Acquisition Loans

Exhibit B-PA               Procedures and Documentation for Warehousing Property
                           Acquisition Loans

Exhibit B-MF/BR            Procedures and Documentation for Warehousing Bridge
                           Mortgage Loans

Exhibit B-MF/MEZ           Procedures and Documentation for Warehousing
                           Mezzanine Loans (Excluding Preferred Equity Interest)

Exhibit B-MF/PEI           Procedures and Documentation for Warehousing
                           Preferred Equity Interest

Exhibit C                  Form of Arbor Member Entity Pledge Agreement

Exhibit D                  Subsidiaries

Exhibit E                  Compliance Certificate

Exhibit F                  Schedule of Existing Lines of Credit

Exhibit G                  Assumed Names

Exhibit H                  Eligible Investments and Other Assets

Exhibit I                  Fee Schedule

Exhibit J                  Loan Monitoring Analysis Form
<PAGE>

                   STRUCTURED FACILITY WAREHOUSING CREDIT AND
                               SECURITY AGREEMENT

STRUCTURED FACILITY WAREHOUSING CREDIT AND SECURITY AGREEMENT, dated as of July
1, 2003 between Arbor Realty Limited Partnership, a Delaware limited partnership
("Borrower"), and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation
("Lender").

A.       Borrower has requested certain financing from Lender.

B.       Lender has agreed to provide that financing to Borrower, subject to the
         terms and conditions of this Agreement.

C.       On the Closing Date, ACM will assign the Initial Eligible Investments
         to Borrower and Borrower will assume certain obligations relating to
         the Initial Eligible Investments, as contemplated by Article 12 of this
         Agreement.

D.       Lender agrees to the assignment and assumption contemplated by Article
         12 of this Agreement.

E.       Subject to Borrower's satisfaction of the conditions set forth in
         Article 5, the "Closing Date" for the transactions contemplated by this
         Agreement is July 1, 2003.

NOW, THEREFORE, the parties to this Agreement agree as follows:

THE CREDIT

1.1. THE STRUCTURED FACILITY COMMITMENT

On the terms and subject to the conditions and limitations of this Agreement,
including Exhibit H, Lender agrees to make Structured Facility Advances to
Borrower from the Closing Date to the Business Day immediately preceding the
Structured Facility Commitment Termination Date, during which period Borrower
may borrow, repay and reborrow in accordance with the provisions of this
Agreement. Lender has no obligation to make Structured Facility Advances if,
after giving effect to such Structured Facility Advance, the aggregate
outstanding principal amount of all Structured Facility Advances would exceed
the Structured Facility Commitment Amount. While a Default or Event of Default
exists, Lender may refuse to make any additional Structured Facility Advances to
Borrower. Effective as of the Closing Date, all "Structured Facility Advances"
outstanding under the Existing ACM Agreement will be assumed by Borrower
pursuant to Section 12.1, and will be deemed for all purposes to be Structured
Facility Advances made under this Agreement. All Structured Facility Advances
under this Agreement constitute a single indebtedness, and all of the Collateral
is security for the Structured Facility Note and for the performance of all of
the Obligations.

1.2. EXPIRATION OF STRUCTURED FACILITY COMMITMENT

The Structured Facility Commitment expires on the earliest of ("Structured
Facility Commitment Termination Date"): (a) June 30, 2006, as such date may be
extended in writing by Lender, in its sole discretion, on which date the
Structured Facility Commitment will expire of its own term, (b) the date ACM for
any reason ceases to be the manager of Guarantor and Borrower under and pursuant
to the Management Agreement, (c) the date any "event of default" (however
defined)

Dated: 7/1/2003
Amended:  7/24/2003

                                    Page 1-1

<PAGE>

occurs under any agreement between ACM and Lender, and (d) the date the
Structured Facility Commitment is terminated or the Structured Facility Advances
become due under Section 10.2. Lender agrees that upon request from Borrower
Lender will notify Borrower on or before April 30, 2006 if Lender does not
expect to extend the Structured Facility Commitment beyond June 30, 2006.

1.3. STRUCTURED FACILITY NOTE

Structured Facility Advances are evidenced by Borrower's promissory note,
payable to Lender on the form prescribed by Lender ("Structured Facility Note").
The term "Structured Facility Note" as used in this Agreement includes all
amendments, restatements, renewals or replacements of the original Structured
Facility Note and all substitutions for it. All terms and provisions of the
Structured Facility Note are incorporated into this Agreement.

                                END OF ARTICLE 1

Dated: 7/1/2003
Amended:  7/24/2003

                                    Page 1-2

<PAGE>

PROCEDURES FOR OBTAINING STRUCTURED FACILITY ADVANCES

2.1. STRUCTURED FACILITY ADVANCES

To obtain any Structured Facility Advance under this Agreement, Borrower must
deliver not later than 10 Business Days before the Business Day on which
Borrower desires the Structured Facility Advance (other than the Structured
Facility Advances deemed to be outstanding against the Initial Eligible
Investments pursuant to Article 12), an Approval Request and Underwriting
Documents. Within 10 Business Days after receipt of the Approval Request and
supporting documents, Lender may, in its sole discretion, approve the requested
Structured Facility Advance by returning to Lender the Approval Request executed
by Lender. The approval will remain valid for a period of 30 days, unless
extended by Lender in its sole discretion. Lender will notify Borrower within
the 3 Business Days after receipt of the Approval Request in the event it
rejects that Approval Request. Subject to the delivery and approval of a
Structured Facility Advance Request, the delivery of the Underwriting Documents
and the satisfaction of the conditions set forth in Sections 5.1 and 5.2,
Borrower may obtain a Structured Facility Advance under this Agreement upon
compliance with the procedures set forth in this Section and in the applicable
Exhibit B, including delivery to Lender of all required Collateral Documents.
Lender's current form of Structured Facility Advance Request is set forth in
Exhibit A. Upon not less than 3 Business Days' prior Notice to Borrower, Lender
may modify its form of Approval Request, Structured Facility Advance Request,
and any other Exhibit or document referred to in this Section to conform to
current legal requirements or Lender practices and, as so modified, those
Exhibits and documents will become part of this Agreement.

                                END OF ARTICLE 2

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

INTEREST, PRINCIPAL AND FEES

3.1.     INTEREST

3.1 (a)  Except as otherwise provided in this Section, Borrower must pay
         interest on the unpaid amount of each Structured Facility Advance from
         the date the Structured Facility Advance is made until it is paid in
         full at the Interest Rate specified in Exhibit H.

3.1 (b)  As long as no Default or Event of Default exists, Borrower is entitled
         to receive a benefit based on the average monthly Eligible Balances of
         Borrower maintained at a Designated Bank. After the end of each month,
         Lender will calculate the portion ("Balance Funded Portion") of the
         Structured Facility Advances that is equal to the lesser of (1) the
         average amount of Structured Facility Advances outstanding during such
         month or (2) the average amount of Eligible Balances during such month.
         Interest that would otherwise be payable by Borrower under Exhibit H on
         the Balance Funded Portion will be reduced by a "Balance Funding
         Credit" equal to:

                Balance Funded Portion x [(IR - BFR) / AB] x ADP,

         where "IR" is the weighted daily average of the Index Rate otherwise
         applicable under Exhibit H, "BFR" is the applicable Balance Funded
         Rate, "AB" is the Accrual Basis and "ADP" is the number of days in the
         month (or other applicable period) for which the Balance Funding Credit
         is applicable. The Structured Facility Advances outstanding during a
         month will be allocated to the Balance Funded Portion in the order
         determined by Lender in its sole discretion.

         If, for any month, a portion of the average amount of Eligible Balances
         remains ("Remainder") after the Balance Funded Portion has been
         deducted, or Borrower has Eligible Balances on deposit in
         interest-bearing demand deposit or time deposit accounts in respect of
         which Lender has received a Depository Benefit, Lender will provide a
         benefit in the form of an "Earnings Credit" on the Eligible Balances
         maintained in time deposit accounts with the Designated Bank, and
         Lender will provide a benefit in the form of an "Earnings Allowance" on
         the Eligible Balances maintained in demand deposit accounts with the
         Designated Bank. Any Earnings Allowance will be used first and any
         Earnings Credit will be used second as a credit against Miscellaneous
         Fees and Charges (including Designated Bank Charges) and against other
         fees payable to Lender under this Agreement, including Structured
         Facility Commitment Fees, and Loan Package Fees, and may be used, at
         Lender's option, to reduce accrued interest. Any Earnings Allowance not
         used during the month in which the benefit was received will be
         accumulated and must be used within 6 months of the month in which the
         benefit was received. As long as no Default or Event of Default exists,
         any Earnings Credit not used during the month in which the benefit was
         received will be used to provide a cash benefit to Borrower. Any
         Earnings Credit retained by Lender as a result of a Default or Event of
         Default will be applied to the payment of Borrower's Obligations in the
         order Lender determines in its sole discretion.

         The Balance Funded Portion, the Balance Funding Credit, the Earnings
         Credit and the Earnings Allowance for any month will be determined by
         Lender in its sole discretion and Lender's determination of those
         amounts is conclusive and binding absent manifest error. In no event
         will the aggregate amount of the benefits received by Borrower under
         this Section exceed the Depository Benefit.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

         Either party to this Agreement may terminate the benefits provided for
         in this Section, in whole or in part, effective immediately upon Notice
         to the other party, if the terminating party determines (which
         determination is conclusive and binding on the other party, absent
         manifest error) at any time that any applicable law, rule, regulation,
         order or decree or any interpretation or administration of any such
         law, rule, regulation, order or decree by any governmental authority
         charged with its interpretation or administration, or compliance by
         such party with any request or directive (whether or not having the
         force of law) of any such authority, makes it unlawful or impossible
         for the party sending the Notice to continue to offer or receive all or
         any portion of the benefits provided for in this Section. No Notice is
         required for a termination of benefits as a result of a Default or
         Event of Default.

3.1 (c)  Lender computes interest on the basis of the actual number of days in
         each month and a year of 360 days ("Accrual Basis"). Borrower must pay
         interest monthly in arrears, not later than 9 days after the date of
         Lender's invoice or, if applicable, 2 days after the date of Lender's
         account analysis statement, commencing with the first month following
         the Closing Date and on the Structured Facility Maturity Date.

3.1 (d)  If, for any reason, (1) Borrower repays a Structured Facility Advance
         on the same day that it was made by Lender or (2) Borrower instructs
         Lender not to make a previously requested Structured Facility Advance
         after Lender has reserved funds or made other arrangements necessary to
         enable Lender to fund that Structured Facility Advance, Borrower agrees
         to pay to Lender an administrative fee equal to 1 day of interest on
         that Structured Facility Advance at the rate of 1.50% per annum.
         Borrower must pay all administrative fees within 9 days after the date
         of Lender's invoice or, if applicable, within 2 days after the date of
         Lender's account analysis statement.

3.1 (e)  After an Event of Default occurs and upon Notice to Borrower by Lender,
         unless and until such Event of Default is waived or cured as provided
         in this Agreement, the unpaid amount of each Structured Facility
         Advance will bear interest at the Default Rate until paid in full.

3.1 (f)  Lender will adjust the rates of interest provided for in this Agreement
         as of the effective date of each change in the applicable index.
         Lender's determination of such rates of interest as of any date of
         determination are conclusive and binding, absent manifest error.

3.2.     INTEREST LIMITATION

Lender does not intend, by reason of this Agreement, the Note or any other Loan
Document, to receive interest in excess of the amount permitted by applicable
law. If Lender receives any interest in excess of the amount permitted by
applicable law, whether by reason of acceleration of the maturity of this
Agreement, the Note or otherwise, Lender will apply the excess to the unpaid
principal balance of the Structured Facility Advances and not to the payment of
interest. If all Structured Facility Advance have been paid in full and the
Structured Facility Commitment has expired or has been terminated, Lender will
remit any excess to Borrower. This Section controls every other provision of all
agreements between Borrower and Lender and is binding upon and available to any
subsequent holder of the Note.

3.3.     PRINCIPAL PAYMENTS

3.3 (a)  Borrower must pay Lender the outstanding principal amount of all
         Structured Facility Advances in 8 equal monthly installments,
         commencing on the date 2 months after the Structured Facility
         Commitment Termination Date and ending on the Structured Facility

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

         Maturity Date. Borrower must pay to Lender all outstanding Obligations
         on the Structured Facility Maturity Date.

3.3 (b)  Except as otherwise provided in Section 3.1(e), Borrower may prepay all
         or any portion of the Structured Facility Advances without premium or
         penalty at any time.

3.3 (c)  Upon telephonic or written Notice to Borrower by Lender, Borrower must
         pay to Lender, and Borrower authorizes Lender to cause the Funding Bank
         to charge Borrower's Operating Account for, the amount of any
         outstanding Structured Facility Advance against a specific Pledged
         Asset upon the earliest occurrence of any of the following events:

         (1)      For any Pledged Asset, the Warehouse Period elapses.

         (2)      On the date a Structured Facility Advance was made if the
                  Pledged Asset to be funded or acquired with that Structured
                  Facility Advance is not closed and funded or acquired.

         (3)      One (1) Business Day elapses from the date a Structured
                  Facility Advance was made against a Pledged Asset without
                  receipt of the Collateral Documents relating to that Pledged
                  Asset required to be delivered on that date, or such
                  Collateral Documents, upon examination by Lender, are found
                  not to be in compliance with the requirements of this
                  Agreement.

         (4)      At the option of Lender, in its sole discretion, ten (10)
                  Business Days elapse without the return of a Collateral
                  Document delivered by Lender to Borrower under a Trust Receipt
                  for correction or completion.

         (5)      On the date on which a Pledged Asset is determined to have
                  been originated or acquired based on material, untrue,
                  incomplete or inaccurate information or otherwise to be
                  subject to fraud, whether or not Borrower had knowledge of the
                  misrepresentation, incomplete or incorrect information or
                  fraud, on the date on which Borrower knows, has reason to
                  know, or receives Notice from Lender, that (A) one or more of
                  the representations and warranties set forth in Article 9 were
                  inaccurate or incomplete in any material respect on any date
                  when made or deemed made, or (B) Borrower has failed to
                  perform or comply in all material respects with any covenant,
                  term or condition applicable to it set forth in Article 9.

         (6)      On the date a Pledged Investment or a Lien prior to the
                  interest securing or backing repayment of the Pledged
                  Investment is defaulted and remains in default for a period of
                  60 days or more.

         (7)      On the date 60 days after Borrower's initiation of foreclosure
                  proceedings against a Pledged Investment.

         (8)      On the date 60 days after any bankruptcy proceeding is
                  commenced and has not been dismissed against an obligor on a
                  Pledged Investment.

         (9)      Upon the sale, maturity, other disposition, refinancing or
                  prepayment of any Pledged Asset.

         (10)     For any Pledged Asset, Borrower consents to an extension of
                  the maturity without the approval of Lender.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

3.3 (d)  In addition to the payments required by Sections 3.3(a) and 3.3(c), if
         the principal amount of any Pledged Investment is prepaid in whole or
         in part while a Structured Facility Advance is outstanding against such
         Pledged Investment, Borrower must pay to Lender, without the necessity
         of prior demand or Notice from Lender, and Borrower authorizes Lender,
         upon Notice to Borrower, to cause the Funding Bank to charge Borrower's
         Operating Account for, the amount of the prepayment, to be applied
         against the applicable Structured Facility Advance.

3.3 (e)  The proceeds of the sale, other disposition or repayment of Pledged
         Assets must be paid directly by the purchaser or refinancing lender to
         the Cash Collateral Account. Borrower must give Notice to Lender in
         writing or by telephone followed promptly by written Notice of the
         Pledged Assets for which proceeds have been received. Upon receipt of
         Borrower's Notice, Lender will apply any proceeds deposited into the
         Cash Collateral Account to the payment of the Structured Facility
         Advances related to the Pledged Assets identified by Borrower in its
         Notice, and those Pledged Assets will be considered to have been
         redeemed from pledge. Lender is entitled to rely upon Borrower's
         affirmation that deposits in the Cash Collateral Account represent
         proceeds of the purchase or repayment of the Pledged Assets specified
         by Borrower in its Notice. If the payment for the purchase or repayment
         of Pledged Assets is less than the outstanding Structured Facility
         Advances against the Pledged Assets identified by Borrower in its
         Notice, Borrower must pay to Lender, and Borrower authorizes Lender to
         cause the Funding Bank to charge Borrower's Operating Account in, an
         amount equal to that deficiency. As long as no Default or Event of
         Default exists, Lender will return to Borrower any excess proceeds of
         Pledged Assets.

3.3 (f)  Lender reserves the right to revalue any Pledged Asset against which a
         Structured Facility Advance is outstanding under this Agreement.
         Borrower must pay to Lender, without the necessity of prior demand or
         Notice from Lender, and Borrower authorizes Lender, upon Notice to
         Borrower, to cause the Funding Bank to charge Borrower's Operating
         Account for, any amount required after any such revaluation to reduce
         the principal amount of the Structured Facility Advance outstanding
         against the revalued Pledged Asset to an amount equal to the Advance
         Rate for the applicable type of Pledged Asset multiplied by the Fair
         Market Value of the Pledged Asset.

3.3 (g)  Borrower must give Lender Notice not later than 1:00 p.m. on the
         Business Day immediately preceding the payment to Lender of proceeds of
         Pledged Assets or any other payment on the Obligations if the amount of
         the payment exceeds $20,000,000. If Lender is unable to reinvest that
         payment as a result of Borrower's failure to provide such Notice,
         Borrower must pay to Lender an administrative fee equal to 1 day of
         interest on the amount of that payment at a rate of 1.50% per annum.
         Administrative and other fees are due and payable in the same manner as
         interest is due and payable under this Agreement.

3.4.     BUYDOWNS

Borrower may prepay a portion of the Structured Facility Advances in an amount
equal to $1,000,000 or an integral multiple $250,000 in excess thereof pursuant
to this Section 3.4 (any such prepayment is hereafter referred to as a
"Buydown"). A Buydown shall be deemed a prepayment of Structured Facility
Advances as agreed between Borrower and Lender, but shall not entitle Borrower
to the release of any Collateral. Borrower shall provide Lender 1 Business Day's
advance notice of any Buydown. All or any portion of a Buydown may be reborrowed
("Buyup") in an amount equal to $1,000,000 or an integral multiple of $250,000
in excess thereof, upon written notice to Lender no later than 10:30 a.m. on any
Business Day, provided no Default or Event of Default has occurred and is
continuing and all other conditions precedent have been satisfied or waived.
Lender

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

shall withdraw each Buydown from Borrower's Operating Account by 12:00 noon on
the day thereof. Each request for a Buydown or Buyup will be on the corporate
letterhead of Borrower and no more than 2 Buydowns/Buyups will occur in any
one-week period. In the event Lender receives a payment of Structured Facility
Advances which would, as a result of the Buydown, reduce the outstanding
principal balance of the Structured Facility Advances to an amount less than
zero, a portion of the Buydown sufficient to eliminate such shortfall equal to
$1,000,000 or an integral multiple of $250,000 in excess thereof, will be
readvanced to Borrower. Lender may apply the Buydown to reduce the interest on
Structured Facility Advances in such order as Lender, in its sole discretion,
shall determine.

3.5.     STRUCTURED FACILITY COMMITMENT FEES; EXIT FEES; PROFIT SHARING

3.5 (a)  At the time of each Structured Facility Advance against a Pledged
         Investment, Borrower must pay Lender a fee ("Structured Facility
         Commitment Fee") in the amount as set forth on Exhibit I. Structured
         Facility Commitment Fees are due when incurred, but are not delinquent
         if paid within 9 days after the date of Lender's invoice or, if
         applicable, within 2 days after the date of Lender's account analysis
         statement.

3.5 (b)  In the event Borrower originates or acquires a Refinancing Loan, and
         the Refinancing Loan is either (i) sold by Borrower to a Person other
         than Lender or a Subsidiary of Lender, or (ii) is not sold within 180
         days after origination of the Refinancing Loan, Borrower will pay to
         Lender an exit fee in the amount as set forth on Exhibit I ("Exit
         Fee"). Borrower will promptly notify Lender of its origination or
         acquisition of any Refinancing Loan, and of the occurrence of one of
         the events described in clause (i) or (ii) above.

3.5 (c) Upon any refinancing, other repayment, sale or other disposition of a
Pledged Investment that is a Bridge Mortgage Loan or a Mezzanine Investment,
Borrower will pay to Lender an amount equal to the amount as set forth on
Exhibit I. These payments will be retained by Lender from the proceeds of such
refinancing, other repayment, sale or other disposition, or Lender shall cause
the Funding Bank to charge Borrower's Operating Account for that payment. Not
less than 1 Business Day prior to the date proceeds of any refinancing, other
repayment, sale or other disposition of a Pledged Investment with respect to
which amounts are payable under this Section 3.5(c) are deposited into the Cash
Collateral Account, Borrower will provide Lender with a calculation of the Net
Profit on such Pledged Investment and the information used by Borrower to make
that calculation. If Borrower fails to provide the calculation and information
described in the preceding sentence, Lender will not release any excess proceeds
of the related Pledged Investment pursuant to Section 3.3(e) until 1 Business
Day after such calculation and information are provided. Lender may, in its sole
and absolute discretion, recalculate such Net Profit, and in the absence of
manifest error, Lender's recalculation of the Net Profit on any such Pledged
Investment will be conclusive. Within 3 Business Days of receiving notice of
Lender's recalculation of the Net Profit, Borrower must give notice to Lender
that it disagrees with such calculation and, in such event the parties agree to,
within 3 Business Days of such notice by Borrower, review and discuss the
calculation. If the parties are still unable to agree on the calculation of the
Net Profit, the calculation will be referred to independent certified public
accountants mutually acceptable to Lender and Borrower, and their calculation of
Net Profit shall be conclusive. Borrower will bear the cost of the fees and
expenses of such accountants.

3.6.     MISCELLANEOUS FEES AND CHARGES

Borrower must reimburse Lender for all Miscellaneous Fees and Charges. Borrower
must pay all Miscellaneous Fees and Charges within 9 days after the date of
Lender's invoice or, if applicable, within 2 days after the date of Lender's
account analysis statement.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

3.7.     OVERDRAFT ADVANCES

If, under the authorization given by Borrower in the Funding Bank Agreement or
pursuant to this Agreement, Lender debits Borrower's Operating Account or
directs the Funding Bank to honor an item presented against the Operating
Account and that debit or direction results in an overdraft, Lender may make an
additional Structured Facility Advance to fund that overdraft ("Overdraft
Advance"). Borrower must pay (a) the outstanding amount of any Overdraft
Advance, within 1 Business Day after the date of the Overdraft Advance, and (b)
interest on the amount of the Overdraft Advance, at a rate per annum equal to
the Bank One Prime Rate plus 2%, within 9 days after the date of Lender's
invoice or, if applicable, within 2 days after the date of Lender's account
analysis statement.

3.8.     METHOD OF MAKING PAYMENTS

3.8 (a)  Unless otherwise specified in this Agreement, Borrower must make all
         payments under this Agreement to Lender by the close of business on the
         date when due unless the date is not a Business Day. If the due date is
         not a Business Day, payment is due on, and interest will accrue to, the
         next Business Day. Borrower must make all payments in United States
         dollars in immediately available funds transferred by wire to accounts
         designated by Lender.

3.8 (b)  Borrower authorizes Lender to cause the Funding Bank to charge
         Borrower's Operating Account for any interest or fees due and payable
         to Lender on or after the 9th day after the date of Lender's invoice
         or, if applicable, on or after the 2nd day after the date of Lender's
         account analysis statement. Prior to the occurrence of an Event of
         Default, Lender will provide Borrower with reasonable Notice of any
         such charge. From and after the occurrence of an Event of Default,
         Lender may cause the Funding Bank to charge the Operating Account
         without the necessity of prior demand or Notice from Lender.

3.8 (c)  While a Default or Event of Default exists, Borrower authorizes Lender
         to cause the Funding Bank to charge Borrower's Operating Account for
         any Obligations due and payable to Lender, without the necessity of
         prior demand or Notice from Lender.

                                END OF ARTICLE 3

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 6

<PAGE>

COLLATERAL

4.1.     GRANT OF SECURITY INTEREST

As security for the payment of the Structured Facility Note and for the
performance of all of Borrower's Obligations, Borrower grants a security
interest to Lender in all of Borrower's right, title and interest in and to the
following described property ("Collateral"):

4.1 (a)  All amounts advanced by Lender to or for the account of Borrower under
         this Agreement to fund a Mortgage Loan until that Mortgage Loan is
         closed and those funds disbursed.

4.1 (b)  All Mortgage Loans and Mezzanine Investments, including all Mortgage
         Notes, Mezzanine Notes, Preferred Equity Interests, Mortgages, Security
         Agreements and Liens evidencing, constituting or securing those
         Mortgage Loans and Mezzanine Investments, that are delivered or caused
         to be delivered to Lender (including delivery to a third party on
         behalf of Lender), or that otherwise come into the possession, custody
         or control of Lender for the purpose of assignment or pledge in
         connection with this Agreement, are otherwise described in any Advance
         Request, or in respect of which Lender has made a Structured Facility
         Advance under this Agreement, and, in the event the Release Amount has
         not been paid with respect to any Mortgage Loan or Mezzanine Investment
         pledged hereunder, any Refinancing Loan the proceeds of which are used,
         in whole or in part, to refinance such Mortgage Loan or Mezzanine
         Investment (collectively, "Pledged Investments").

4.1 (c)  All Mortgage-backed Securities that are created in whole or in part on
         the basis of Pledged Investments or that are delivered or caused to be
         delivered to Lender or that otherwise come into the possession, custody
         or control of Lender or its agent, bailee or custodian as assignee in
         connection with this Agreement, or that are pledged to Lender in
         connection with this Agreement, for such purpose are registered by
         book-entry in the name of Lender (including registration in the name of
         a third party on behalf of Lender), in each case for the purpose of
         pledge in connection with this Agreement, or in respect of which a
         Structured Facility Advance has been made by Lender under this
         Agreement (collectively, "Pledged Securities").

4.1 (d)  All private mortgage insurance and all commitments issued by the FHA to
         insure or guarantee any Mortgage Loans included in the Pledged
         Investments; all Purchase Commitments held by Borrower covering Pledged
         Investments or Pledged Securities or Refinancing Loans, and all
         proceeds from the sale to Investors of Pledged Investments, Pledged
         Securities and Multifamily Properties against which Structured Facility
         Advances were made; and all personal property, contract rights,
         servicing rights or contracts and servicing fees and income or other
         proceeds, amounts and payments payable to Borrower as compensation or
         reimbursement, accounts, payments, intangibles and general intangibles
         of every kind relating to Pledged Assets, Purchase Commitments, FHA
         commitments, private mortgage insurance and commitments, and all other
         documents or instruments relating to Pledged Investments and Pledged
         Securities, including any interest of Borrower in any fire, casualty or
         hazard insurance policies and any awards made by any public body or
         decreed by any court of competent jurisdiction for a taking or for
         degradation of value in any eminent domain proceeding as the same
         relate to Pledged Asset.

4.1 (e)  All escrow accounts, documents, instruments, files, surveys,
         certificates, correspondence, appraisals, computer programs, tapes,
         discs, cards, accounting

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

         records (including all information, records, tapes, data, programs,
         discs and cards necessary or helpful in the administration or servicing
         of the Collateral) and other information and data of Borrower relating
         to the Collateral.

4.1 (f)  All shares of capital stock, membership interests, partnership
         interests or other ownership interests now owned or hereafter acquired
         by Borrower (collectively, the "Pledged Shares") in any Property
         Subsidiary or ARLP Member Entity to the extent a Structured Facility
         Advance is made with respect to the property of such entity; all
         certificates representing the Pledged Shares, and all dividends, cash,
         instruments and other property from time to time received, receivable
         or otherwise distributed in respect or of in exchange for any or all of
         the Pledged Shares.

4.1 (g)  All cash, whether now existing or acquired after the date of this
         Agreement, delivered to or otherwise in the possession of Lender, the
         Funding Bank or Lender's agent, bailee or custodian or designated on
         the books and records of Borrower as assigned and pledged to Lender,
         other than cash on deposit with the Funding Bank in a trust or escrow
         account, including all cash deposited in the Cash Collateral Account
         and the Wire Disbursement Account.

4.1 (h)  All Hedging Arrangements related to the Collateral ("Pledged Hedging
         Arrangements") and Borrower's accounts in which those Pledged Hedging
         Arrangements are held ("Pledged Hedging Accounts"), including all
         rights to payment arising under the Pledged Hedging Arrangements and
         the Pledged Hedging Accounts, except that Lender's security interest in
         the Pledged Hedging Arrangements and Pledged Hedging Accounts applies
         only to benefits, including rights to payment, related to the
         Collateral.

4.1 (i)  All cash and non-cash proceeds of the Collateral, including all
         dividends, distributions and other rights in connection with, and all
         additions to, modifications of and replacements for, the Collateral,
         and all products and proceeds of the Collateral, together with whatever
         is receivable or received when the Collateral or proceeds of Collateral
         are sold, collected, exchanged or otherwise disposed of, whether such
         disposition is voluntary or involuntary, including all rights to
         payment with respect to any cause of action affecting or relating to
         the Collateral or proceeds of Collateral.

4.2.     MAINTENANCE OF COLLATERAL RECORDS

As long as the Structured Facility Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must preserve and maintain, at its chief executive office and
principal place of business or in a regional office approved by Lender, or in
the office of a computer service bureau engaged by Borrower and approved by
Lender and, upon request, make available to Lender the originals, or copies in
any case where the originals have been delivered to Lender or to an Investor, of
the Mortgage Notes, Mortgages, Mezzanine Notes, and Security Agreements, and
other agreements or documents evidencing, securing or backing Pledged
Investments, Mortgage-backed Securities delivered to Lender as Pledged
Securities, Purchase Commitments, and all related Mortgage Loan documents and
instruments, and all files, surveys, certificates, correspondence, appraisals,
computer programs, tapes, discs, cards, accounting records and other information
and data relating to the Collateral.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

4.3.     RELEASE OF SECURITY INTEREST IN PLEDGED INVESTMENTS AND PLEDGED
         SECURITIES

4.3 (a)  Lender will release its security interest in the Pledged Assets only
         against payment to Lender of the Release Amount in connection with
         those Pledged Assets.

4.3 (b)  If Pledged Assets are transferred to a pool custodian or an Investor
         for inclusion in a Mortgage Pool and Lender has not received the
         Release Amount with respect to that Pledged Asset before the issuance
         of the related Mortgage-backed Security, then that Mortgage-backed
         Security, when issued, is a Pledged Security, Lender's security
         interest continues in the Pledged Assets backing that Pledged Security
         and Lender is entitled to possession of the Pledged Security in the
         manner provided in this Agreement.

4.3 (c)  Lender has the exclusive right to possession of all Pledged Securities
         or, if Pledged Securities are issued in book-entry form or issued in
         certificated form and delivered to a clearing corporation (as that term
         is defined in the Uniform Commercial Code of Minnesota) or its nominee,
         Lender has the right to have the Pledged Securities registered in the
         name of a securities intermediary (as that term is defined in the
         Uniform Commercial Code of Minnesota) in an account containing only
         customer securities and credited to an account of Lender. Lender has no
         duty or obligation to deliver Pledged Securities to an Investor or to
         credit Pledged Securities to the account of an Investor or an
         Investor's designee except against payment for those Pledged
         Securities. Borrower acknowledges that Lender may enter into one or
         more standing arrangements with securities intermediaries with respect
         to Pledged Securities issued in book entry form or issued in
         certificated form and delivered to a clearing corporation or its
         designee, under which the Pledged Securities are registered in the name
         of the securities intermediary, and Borrower agrees, upon request of
         Lender, to execute and deliver to those securities intermediaries
         Borrower's written concurrence in any such standing arrangements.

4.3 (d)  If no Default or Event of Default has occurred and is continuing,
         Borrower may redeem a Pledged Asset from Lender's security interest by
         notifying Lender of its intention to redeem the Pledged Asset from
         pledge and either (1) paying, or causing an Investor to pay, to Lender,
         for application as a prepayment on the principal balance of the
         Structured Facility Note, the Release Amount in connection with the
         Pledged Asset, or (2) delivering substitute Collateral that, in
         addition to being acceptable to Lender in its sole discretion, will,
         when included with the remaining Collateral, result in a Structured
         Facility Collateral Value of all Pledged Assets held by Lender that is
         at least equal to the aggregate outstanding Structured Facility
         Advances.

4.3 (e)  After a Default or Event of Default occurs, Lender may, with no
         liability to Borrower or any Person, continue to release its security
         interest in any Pledged Asset against payment of the Release Amount for
         that Pledged Asset.

4.3 (f)  The amount to be paid by Borrower to obtain the release of Lender's
         security interest in a Pledged Asset ("Release Amount") will be (1) in
         connection with the sale of a Pledged Asset by Lender while an Event of
         Default exists, the amount paid to Lender in a commercially reasonable
         disposition of that Pledged Asset, and (2) otherwise, until an Event of
         Default occurs, the principal amount of the Structured Facility Advance
         outstanding against the Pledged Asset.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

4.4.     COLLECTION AND SERVICING RIGHTS

4.4 (a)  If no Event of Default exists, Borrower or Servicer may service and
         receive and collect directly all sums payable to Borrower in respect of
         the Collateral other than proceeds of any sale of any Collateral. All
         proceeds of any sale of Collateral must be paid directly to the Cash
         Collateral Account for application as provided in this Agreement.

4.4 (b)  After an Event of Default, Lender or its designee is entitled to
         service and receive and collect all sums payable to Borrower in respect
         of the Collateral, and in such case (1) Lender or its designee in its
         discretion may, in its own name, in the name of Borrower or otherwise,
         demand, sue for, collect or receive any money or property at any time
         payable or receivable on account of or in exchange for any of the
         Collateral, but Lender has no obligation to do so, (2) Borrower must,
         if Lender requests it to do so, hold in trust for the benefit of Lender
         and immediately pay to Lender at its office designated by Notice, all
         amounts received by Borrower upon or in respect of any of the
         Collateral, advising Lender as to the source of those funds and (3) all
         amounts so received and collected by Lender will be held by it as part
         of the Collateral.

4.5.     RETURN OF COLLATERAL AT END OF STRUCTURED FACILITY COMMITMENT

If (a) the Structured Facility Commitment has expired or been terminated, and
(b) no Structured Facility Advances, interest or other Obligations are
outstanding and unpaid, Lender will release its security interest and will
deliver all Collateral in its possession to Borrower at Borrower's expense.
Borrower's acknowledgement or receipt for any Collateral released or delivered
to Borrower under any provision of this Agreement is a complete and full
acquittance for the Collateral so returned, and Lender is discharged from any
liability or responsibility for that Collateral. Nothing in this Section 4.5
shall limit Lender's obligation to release its security interest in specific
items of Collateral as provided elsewhere in this Agreement.

4.6.     DELIVERY OF COLLATERAL DOCUMENTS

4.6 (a)  Lender may deliver documents relating to the Collateral to Borrower for
         correction or completion under a Trust Receipt.

4.6 (b)  If no Default or Event of Default exists, upon delivery by Borrower to
         Lender of shipping instructions pursuant to the applicable Exhibit B,
         Lender will transmit Pledged Investments or Pledged Securities,
         together with all related loan documents and pool documents previously
         received by Lender under the requirements of the applicable Exhibit B,
         to the designated Investor or Approved Custodian or to another party
         designated by Borrower and acceptable to Lender in its sole discretion.

4.6 (c)  If a Default or Event of Default exists, Lender may, without liability
         to Borrower or any other Person, continue to deliver Pledged
         Investments or Pledged Securities, together with all related loan
         documents and pool documents in Lender's possession, to the applicable
         Investor, or Approved Custodian or to another party acceptable to
         Lender in its sole discretion.

4.6 (d)  Upon payment of the Release Amount for a Multifamily Property or a
         Commercial Property, Lender agrees to provide a satisfaction for the
         related Property Mortgage or consent to the transfer thereof by the
         Property Subsidiary.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

4.7.     BORROWER REMAINS LIABLE

Anything herein to the contrary notwithstanding, Borrower shall remain liable
under each item of the Collateral to observe and perform all the conditions and
obligations to be observed and performed by it thereunder, all in accordance
with the terms thereof and any other agreement giving rise thereto, and in
accordance with and pursuant to the terms and provisions thereof. Whether or not
Lender has exercised any rights in any of the Collateral, Lender shall have no
obligation or liability under any of the Collateral (or any agreement giving
rise thereto) by reason of or arising out of this Agreement or the receipt by
Lender of any payment relating thereto, nor shall Lender be obligated in any
manner to perform any of the obligations of Borrower under or pursuant to any of
the Collateral (or any agreement giving rise thereto) to make any payment, to
make any inquiry as to the nature or the sufficiency of any payment received by
it or as to the sufficiency of any performance by any party under any of the
Collateral (or any agreement giving rise thereto), to present or file any claim,
to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to it or to which it may be entitled at any
time or times.

4.8.     FURTHER ASSURANCE

Borrower authorizes Lender to file financing statements to perfect and continue
Lender's security interest in the Collateral. Borrower will execute and
cooperate with Lender in obtaining from third parties control agreements in form
satisfactory to Lender with respect to collateral consisting of investment
property, deposit accounts, letter-of-credit rights, and electronic chattel
paper.

                                END OF ARTICLE 4

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

CONDITIONS PRECEDENT

5.1.     INITIAL ADVANCE

The effectiveness of this Agreement, including Lender's obligation to make the
initial Structured Facility Advance, is subject to the satisfaction, in the sole
discretion of Lender, of the following conditions precedent:

5.1 (a)  Lender must receive the following, all of which must be satisfactory in
         form and content to Lender, in its sole discretion:

         (1)      The Structured Facility Note and this Agreement duly executed
                  by Borrower.

         (2)      Borrower's certificate of Limited Partnership, together with
                  all amendments, as certified by the Secretary of State of
                  Delaware, Borrower's partnership agreement, together with all
                  amendments, certified by the General Partner of Borrower, and
                  certificates of good standing dated within 30 days of the date
                  of this Agreement, together with a certification from the
                  Franchise Tax Board or other state tax authority stating that
                  Borrower is in good standing with the Franchise Tax Board or
                  such state tax authority, if applicable.

         (3)      A resolution, consent or approval of all of the partners of
                  Borrower authorizing the execution, delivery and performance
                  of this Agreement and the other Loan Documents, each
                  Structured Facility Advance Request and all other agreements,
                  instruments or documents to be delivered by Borrower under
                  this Agreement.

         (4)      A certificate as to the incumbency and authenticity of the
                  signatures of the General Partner of Borrower executing this
                  Agreement and the other Loan Documents, and of the employees
                  of the General Partner delivering each Structured Facility
                  Advance Request and all other agreements, instruments or
                  documents to be delivered under this Agreement (Lender being
                  entitled to rely on that certificate until a new incumbency
                  certificate has been furnished to Lender).

         (5)      The General Partner's articles or certificate of
                  incorporation, together with all amendments, as certified by
                  the Secretary of State of Delaware, bylaws certified by the
                  corporate secretary of the General Partner and certificates of
                  good standing dated within 30 days of the date of this
                  Agreement.

         (6)      A resolution of the General Partner's board of directors,
                  certified as of the date of the Agreement by its corporate
                  secretary, authorizing the execution, delivery and performance
                  of this Agreement and the other Loan Documents, each
                  Structured Facility Advance Request and all other agreements,
                  instruments or documents to be delivered under this Agreement.

         (7)      Guarantor's articles or certificate of incorporation, together
                  with all amendments, as certified by the Secretary of State of
                  Maryland, bylaws certified by the corporate secretary of the
                  Guarantor and certificates of good standing dated within 30
                  days of the date of this Agreement.

         (8)      A resolution of the Guarantor's board of directors, certified
                  as of the date of the Agreement by its corporate secretary,
                  authorizing the execution, delivery and performance of this
                  Agreement and the other Loan Documents, each Structured

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

                  Facility Advance Request and all other agreements, instruments
                  or documents to be delivered under this Agreement.

         (9)      Financial statements of the Guarantor (and the Guarantor's
                  Subsidiaries, on a consolidated basis) containing a proforma
                  balance sheet as of the Closing Date, all prepared in
                  accordance with GAAP.

         (10)     Opinion of counsel for Borrower and Guarantor, in form and
                  substance satisfactory to Lender.

         (11)     Assumed Name Certificates dated within 30 days of the date of
                  this Agreement for any assumed name used by Borrower in the
                  conduct of its business.

         (12)     Uniform Commercial Code, tax lien and judgment searches of the
                  appropriate public records for Borrower that do not disclose
                  the existence of any prior Lien on the Collateral other than
                  in favor of Lender or as permitted under this Agreement.

         (13)     Copies of Borrower's errors and omissions insurance policy or
                  mortgage impairment insurance policy, and blanket bond
                  coverage policy, or certificates in lieu of policies, showing
                  compliance by Borrower as of the date of this Agreement with
                  the provisions of Section 7.8.

         (14)     A fully-executed Funding Bank Agreement and evidence that all
                  accounts into which Structured Facility Advances will be
                  funded have been established at the Funding Bank.

         (15)     An executed Guaranty by the Guarantor.

         (16)     Evidence that the private placement of Equity Interests in the
                  Guarantor described in the Preliminary Offering Memorandum
                  dated as of June 13, 2003 has been completed or will be
                  completed simultaneously upon this Agreement becoming
                  effective.

         (17)     Receipt by Lender of any fees due on the date of this
                  Agreement.

5.1 (b)  If Borrower is indebted to any of its partners or Affiliates or any
         director, officer or shareholder of any partner or any Affiliate of any
         partner, or to the Guarantor, as of the date of this Agreement, the
         Person to whom Borrower is indebted must have executed a Subordination
         of Debt Agreement, on the form prescribed by Lender; and Lender must
         have received an executed copy of that Subordination of Debt Agreement,
         certified by the General Partner of Borrower to be true and complete
         and in full force and effect as of the date of the Structured Facility
         Advance.

5.2.     EACH ADVANCE

Lender's obligation to make the initial and each subsequent Structured Facility
Advance is subject to the satisfaction, in the sole discretion of Lender, as of
the date of each Structured Facility Advance, of the following additional
conditions precedent:

5.2 (a)  Borrower must have delivered to Lender the Structured Facility Advance
         Request and Collateral Documents required by, and must have satisfied
         the procedures set forth in, Article 2 and the Exhibits described in
         that Article. All items delivered to Lender must be satisfactory to
         Lender in form and content, and Lender may reject any item that does
         not satisfy the requirements of this Agreement or of the related
         Purchase Commitment.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

5.2 (b)  Lender must have received evidence satisfactory to it as to the making
         or continuation of any book entry or the due filing and recording in
         all appropriate offices of all financing statements and other
         instruments necessary to perfect the security interest of Lender in the
         Collateral under the Uniform Commercial Code or other applicable law.

5.2 (c)  The representations and warranties of Borrower contained in Article 6
         and Article 9 must be accurate and complete in all material respects as
         if made on and as of the date of each Structured Facility Advance.

5.2 (d)  Borrower must have performed all agreements to be performed by it under
         this Agreement, and after giving effect to the requested Structured
         Facility Advance, no Default or Event of Default will exist under this
         Agreement.

5.2 (e)  The Guarantor must have performed all agreements to be performed by the
         Guarantor under the Guaranty.

5.2 (f)  ACM must be the manager of the Guarantor and Borrower under and
         pursuant to the Management Agreement.

Delivery of a Structured Facility Advance Request by Borrower will be deemed a
         representation by Borrower that all conditions set forth in this
         Section have been satisfied as of the date of the Structured Facility
         Advance.

5.3.     STRUCTURED FACILITY ADVANCES TO FINANCE PREFERRED EQUITY INTERESTS

Lender's obligation to make a Structured Facility Advance being used to finance
a Preferred Equity Interest owned or to be owned by a Special Purpose Entity is
subject to the delivery by such Special Purpose Entity to Lender of a Pledge
Agreement substantially in the form of Exhibit C hereto, duly completed,
together with such other documents, including evidence of the Special Purpose
Entity's organizational status and authorization of the Pledge Agreement and
documentation of the Preferred Equity Interest, as Lender may request.

5.4.     FORCE MAJEURE

Notwithstanding Borrower's satisfaction of the conditions set forth in this
Agreement, Lender has no obligation to make a Structured Facility Advance if
Lender is unable to deliver such funds as a result of any fire or other
casualty, failure of power, strike, lockout or other labor trouble, banking
moratorium, embargo, sabotage, confiscation, condemnation, riot, civil
disturbance, insurrection, act of terrorism, war or other activity of armed
forces, act of God or other similar reason beyond the control of Lender. Lender
will make the requested Structured Facility Advance as soon as reasonably
possible following the occurrence of such an event.

                                END OF ARTICLE 5

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

GENERAL REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender, as of the date of this Agreement and
as of the date of each Structured Facility Advance Request and the making of
each Structured Facility Advance, that:

6.1.     PLACE OF BUSINESS

Borrower's chief executive office and principal place of business is 333 Earle
Ovington Boulevard, Suite 900, Uniondale, NY, 11553-3617.

6.2.     ORGANIZATION; GOOD STANDING; SUBSIDIARIES

Borrower is a limited partnership duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has the full legal power
and authority to own its property and to carry on its business as currently
conducted. Borrower is duly qualified as a foreign limited partnership to do
business and is in good standing in each jurisdiction in which the transaction
of its business makes qualification necessary, except in jurisdictions, if any,
where a failure to be in good standing has no material adverse effect on
Borrower's business, operations, assets or financial condition as a whole. For
the purposes of this Agreement, good standing includes qualification for all
licenses and payment of all taxes required in the jurisdiction of its formation
and in each jurisdiction in which Borrower transacts business. Borrower has no
Subsidiaries except as set forth on Exhibit D, which sets forth with respect to
each Subsidiary, its name, address, jurisdiction of organization, each state in
which it is qualified to do business, and the percentage ownership of its
partnership interests by Borrower. Each of Borrower's Subsidiaries is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, and has the full legal power and authority to
own its property and to carry on its business as currently conducted.

6.3.     AUTHORIZATION AND ENFORCEABILITY

Borrower has the power and authority to execute, deliver and perform this
Agreement, the Structured Facility Note and other Loan Documents to which
Borrower is party and to make the borrowings under this Agreement. The
execution, delivery and performance by Borrower of this Agreement, the
Structured Facility Note and the other Loan Documents to which Borrower is party
and the making of the borrowings under this Agreement, and the Structured
Facility Note, have been duly and validly authorized by all necessary limited
partnership action on the part of Borrower (none of which actions has been
modified or rescinded, and all of which actions are in full force and effect)
and do not and will not (a) conflict with or violate any provision of law, of
any judgments binding upon Borrower, or of the certificate of Limited
Partnership or partnership agreement of Borrower, or (b) conflict with or result
in a breach of, constitute a default or require any consent under, or result in
or require the acceleration of any indebtedness of Borrower under any agreement,
instrument or indenture to which Borrower is a party or by which Borrower or its
property may be bound or affected, or result in the creation of any Lien upon
any property or assets of Borrower (other than the Lien on the Collateral
granted under this Agreement). This Agreement, the Structured Facility Note and
the other Loan Documents constitute the legal, valid and binding obligations of
Borrower, enforceable in accordance with their respective terms, except as
limited by bankruptcy, insolvency or other such laws affecting the enforcement
of creditors' rights and by general principles of equity.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

6.4.     AUTHORIZATION AND ENFORCEABILITY OF GUARANTY

The Guarantor has the power and authority to execute, deliver and perform the
Guaranty. The Guaranty constitutes the legal, valid, and binding obligation of
Guarantor, enforceable in accordance with its terms, except as limited by
bankruptcy, insolvency or other such laws affecting the enforcement of
creditors' rights.

6.5.     APPROVALS

The execution and delivery of this Agreement, the Structured Facility Note and
the other Loan Documents and the performance of Borrower's obligations under
this Agreement, the Structured Facility Note and the other Loan Documents and
the validity and enforceability of this Agreement, the Structured Facility Note
and the other Loan Documents do not require any license, consent, approval or
other action of any state or federal agency or governmental or regulatory
authority other than those that have been obtained and remain in full force and
effect.

6.6.     FINANCIAL CONDITION

The balance sheet of Borrower (and, if applicable, Borrower's Subsidiaries, on a
consolidated basis) as of each Statement Date, and the related statements of
income, and cash flows for the fiscal period ended on each Statement Date,
furnished to Lender, fairly present the financial condition of Borrower (and, if
applicable, Borrower's Subsidiaries) as at that Statement Date and the results
of its operations for the fiscal period ended on that Statement Date. Borrower
had, on each Statement Date, no known material liabilities, direct or indirect,
fixed or contingent, matured or unmatured, or liabilities for taxes, long-term
leases or unusual forward or long-term commitments not disclosed by, or reserved
against in, those financial statements, and at the present time there are no
material unrealized or anticipated losses from any loans, advances or other
commitments of Borrower except as previously disclosed to Lender in writing.
Those financial statements were prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved. Since the Audited Statement
Date, there has been no material adverse change in the business, operations,
assets or financial condition of Borrower (and, if applicable, Borrower's
Subsidiaries), nor is Borrower aware of any state of facts that (with or without
notice or lapse of time or both) is reasonably likely to result in any such
material adverse change.

6.7.     LITIGATION

There are no actions, claims, suits or proceedings pending or, to Borrower's
knowledge, threatened or reasonably anticipated against or affecting Borrower or
any Subsidiary of Borrower in any court or before any arbitrator or before any
government commission, board, bureau or other administrative agency that, if
adversely determined, may reasonably be expected to result in a material adverse
change in Borrower's business, operations, assets or financial condition as a
whole, or that would affect the validity or enforceability of this Agreement,
the Structured Facility Note or any other Loan Document.

6.8.     COMPLIANCE WITH LAWS

Neither Borrower nor any Subsidiary of Borrower is in violation of any provision
of any law, or of any judgment, award, rule, regulation, order, decree, writ or
injunction of any court or public regulatory body or authority that is
reasonably likely to result in a material adverse change in Borrower's business,
operations, assets or financial condition as a whole or that would affect the
validity or enforceability of this Agreement, the Structured Facility Note or
any other Loan Document.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

6.9.     REGULATION U

Borrower is not engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying
Margin Stock, and no part of the proceeds of any Structured Facility Advance
made under this Agreement will be used to purchase or carry any Margin Stock or
to extend credit to others for the purpose of purchasing or carrying any Margin
Stock.

6.10.    INVESTMENT COMPANY ACT

Borrower is not an "investment company" or controlled by an "investment company"
within the meaning of the Investment Company Act.

6.11.    PAYMENT OF TAXES

Borrower and each of its Subsidiaries has filed or caused to be filed all
federal, state and local income, excise, property and other tax returns that are
required to be filed with respect to the operations of Borrower and its
Subsidiaries, all such returns are true and correct and Borrower and each of its
Subsidiaries has paid or caused to be paid all taxes shown on those returns or
on any assessment, to the extent that those taxes have become due, including all
FICA payments and withholding taxes, if appropriate. The amounts reserved as a
liability for income and other taxes payable in the financial statements
described in Section 6.6 are sufficient for payment of all unpaid federal, state
and local income, excise, property and other taxes, whether or not disputed, of
Borrower and its Subsidiaries accrued for or applicable to the period and on the
dates of those financial statements and all years and periods prior to those
financial statements and for which Borrower and its Subsidiaries may be liable
in their own right or as transferee of the assets of, or as successor to, any
other Person. No tax Liens have been filed and no material claims are being
asserted against Borrower, any Subsidiary of Borrower or any property of
Borrower or any Subsidiary of Borrower with respect to any taxes, fees or
charges.

6.12.    AGREEMENTS

Neither Borrower nor any Subsidiary of Borrower is a party to any agreement,
instrument or indenture or subject to any restriction materially and adversely
affecting its business, operations, assets or financial condition, except as
disclosed in the financial statements described in Section 6.6. Neither Borrower
nor any Subsidiary of Borrower is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any
agreement, instrument, or indenture which default is reasonably likely to result
in a material adverse change in Borrower's business, operations, properties or
financial condition as a whole. No holder of any indebtedness of Borrower or of
any of its Subsidiaries has given notice of any asserted default under that
indebtedness, and no liquidation or dissolution of Borrower or of any of its
Subsidiaries and no receivership, insolvency, bankruptcy, reorganization or
other similar proceedings relative to Borrower or of any of its Subsidiaries or
any of its or their properties is pending, or to the knowledge of Borrower,
threatened.

6.13.    TITLE TO PROPERTIES

Borrower and each Subsidiary of Borrower has good, valid, insurable and (in the
case of real property) marketable title to all of its properties and assets
(whether real or personal, tangible or intangible) reflected on the financial
statements described in Section 6.6, except for those properties and assets that
Borrower has disposed of since the date of those financial statements either in
the ordinary course of business or because they were no longer used or useful in
the

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

conduct of Borrower's or the Subsidiary's business. All of Borrower's properties
and assets are free and clear of all Liens except as disclosed in Borrower's
financial statements.

6.14.    ERISA

Each Plan is in substantial compliance with all applicable requirements of ERISA
and the Internal Revenue Code and with all material applicable rulings and
regulations issued under the provisions of ERISA and the Internal Revenue Code
setting forth those requirements, except where any failure to comply is not
reasonably likely to result in a material loss to Borrower or any ERISA
Affiliate. All of the minimum funding standards or other contribution
obligations applicable to each Plan have been satisfied. No Plan is a
defined-benefit pension plan subject to Title IV of ERISA, and there is no
Multiemployer Plan.

6.15.    NO RETIREE BENEFITS

Except as required under Section 4980B of the Internal Revenue Code, Section 601
of ERISA or applicable state law, neither Borrower nor, if applicable, any
Subsidiary is obligated to provide post-retirement medical or insurance benefits
with respect to employees or former employees.

6.16.    ASSUMED NAMES

Borrower does not originate Mortgage Loans or otherwise conduct business under
any names other than its legal name and the assumed names set forth on Exhibit
G. Borrower has made all filings and taken all other action as may be required
under the laws of any jurisdiction in which it originates Mortgage Loans or
otherwise conducts business under any assumed name. Borrower's use of the
assumed names set forth on Exhibit G does not conflict with any other Person's
legal rights to any such name, nor otherwise give rise to any liability by
Borrower to any other Person. Borrower may amend Exhibit G to add or delete any
assumed names used by Borrower to conduct business. An amendment to Exhibit G to
add an assumed name is not effective until Borrower has delivered to Lender an
assumed name certificate in the jurisdictions in which the assumed name is to be
used, which must be satisfactory in form and content to Lender, in its sole
discretion. In connection with any amendment to delete a name from Exhibit G,
Borrower represents and warrants that it has ceased using that assumed name in
all jurisdictions.

                                END OF ARTICLE 6

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

AFFIRMATIVE COVENANTS

As long as the Structured Facility Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must:

7.1.     PAYMENT OF OBLIGATIONS

Punctually pay or cause to be paid all Obligations, including the Obligations
payable under this Agreement and under the Structured Facility Note, in
accordance with their terms.

7.1 (a)  As soon as available and in any event within 45 days after the end of
         each fiscal quarter of Borrower, including the last fiscal quarter of
         Borrower's fiscal year, an interim statement of income of Borrower and
         Guarantor (and, if applicable, such Person's Subsidiaries, on a
         consolidated basis) for that fiscal quarter and the period from the
         beginning of the fiscal year to the end of that fiscal quarter, and the
         related balance sheet as at the end of that fiscal quarter, all in
         reasonable detail, subject, however, to year-end audit adjustments.

7.1 (b)  As soon as available and in any event within 90 days after the end of
         each fiscal year of the Guarantor, fiscal year-end statements of
         income, changes in stockholders' equity and cash flows for the
         Guarantor (and, if applicable, the Guarantor's Subsidiaries, on a
         consolidated basis) for that year, and the related balance sheet as at
         the end of that year (setting forth in comparative form the
         corresponding figures for the preceding fiscal year), all in reasonable
         detail and accompanied by (1) an opinion as to those financial
         statements in form and substance satisfactory to Lender and prepared by
         independent certified public accountants of recognized standing
         acceptable to Lender and (2) any management letters, management reports
         or other supplementary comments or reports delivered by those
         accountants to the Guarantor.

7.1 (c)  Together with each delivery of financial statements required by this
         Section, a Compliance Certificate substantially in the form of Exhibit
         E.

7.1 (d)  Copies of all regular or periodic financial and other reports that
         Borrower or Guarantor files with the Securities and Exchange Commission
         or any successor governmental agency or other entity.

7.2.     OTHER BORROWER REPORTS

Deliver to Lender:

7.2 (a)  As soon as available and in any event within 30 days after the end of
         each Calendar Quarter, a consolidated report from ACM as servicer
         ("Servicing Portfolio Report") as of the end of such Calendar Quarter,
         as to all Mortgage Loans the servicing rights to which are owned by
         Borrower (specified by investor type, recourse and non-recourse)
         regardless of whether the Mortgage Loans are Pledged Loans. The
         Servicing Portfolio Report must indicate which Mortgage Loans (1) are
         current and in good standing, (2) are more than 30, 60 or 90 days past
         due, (3) are the subject of pending bankruptcy or foreclosure
         proceedings, or (4) have been converted (through foreclosure or other
         proceedings in lieu of foreclosure) into real estate owned by Borrower.

7.2 (b)  As soon as available and in any event within 45 days after the end of
         each fiscal quarter in the fiscal year of Borrower, a consolidated loan
         production report as of the end of that

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

         fiscal quarter, presenting the total dollar volume and the number of
         Mortgage Loans originated and closed or purchased during that fiscal
         quarter and for the fiscal year-to-date, specified by property type,
         loan type and Investor to whom each Mortgage Loan was sold.

7.2 (c)  Reports in respect of the Pledged Assets in such detail and at such
         times as Lender in its discretion may reasonably request.

7.2 (d)  On or before the 25th day of each month immediately following the end
         of each fiscal quarter, a loan monitoring analysis with respect to each
         asset owned by Borrower (whether or not pledged under this Agreement)
         as of the end of such quarter, in the form attached as Exhibit J.

7.2 (e)  A copy of any material change to the Underwriting Guidelines, not fewer
         than 3 Business Days prior to the effective date of that change.

7.2 (f)  On or before the first Business Day of each week, a hedging report, in
         form and substance satisfactory to Lender, with respect to all
         fixed-rate Pledged Investments that are not covered by a Purchase
         Commitment as of the end of the preceding week.

7.2 (g)  Other reports in respect of Pledged Assets, including copies of
         purchase confirmations issued by Investors purchasing Pledged Loans
         from Borrower, in such detail and at such times as Lender in its
         discretion may reasonably request.

7.2 (h)  With reasonable promptness, all further information regarding the
         business, operations, properties or financial condition of Borrower as
         Lender may reasonably request, including copies of any audits, if any,
         completed by HUD, Ginnie Mae, Fannie Mae, Freddie Mac and any rating
         agency.

7.2 (i)  From time to time, with reasonable promptness, such further information
         regarding the business, operations, properties or financial condition
         of Borrower as Lender may reasonably request.

7.3.     MAINTENANCE OF EXISTENCE; CONDUCT OF BUSINESS

Preserve and maintain its existence as a Limited Partnership in good standing
and all of its rights, privileges, licenses and franchises necessary or
desirable in the normal conduct of its business, conduct its business in an
orderly and efficient manner; and make no material change in the nature or
character of its business or engage in any business in which it was not engaged
on the date of this Agreement.

7.4.     COMPLIANCE WITH APPLICABLE LAWS

Comply with the requirements of all applicable laws, rules, regulations and
orders of any governmental authority, a breach of which could reasonably be
expected to result in a material adverse change in Borrower's business,
operations, assets, or financial condition as a whole or on the enforceability
of this Agreement, the Structured Facility Note, any other Loan Document or any
Collateral, except where contested in good faith and by appropriate proceedings.

7.5.     INSPECTION OF PROPERTIES AND BOOKS; OPERATIONAL REVIEWS

7.5 (a)  Permit Lender or any Participant (and their authorized representatives)
         to discuss the business, operations, assets and financial condition of
         Borrower and its Subsidiaries with

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

         Borrower's officers, agents and employees, and to examine and make
         copies or extracts of Borrower's and its Subsidiaries' books of
         account, all at such reasonable times and, as long as no Default or
         Event of Default has occurred and is continuing, on such reasonable
         Notice, as Lender or any Participant may request.

7.5 (b)  Provide its accountants with a copy of this Agreement promptly after
         its execution and authorize and instruct them to answer candidly all
         questions that the officers of Lender or any Participant or any
         authorized representatives of Lender or any Participant may address to
         them in reference to the financial condition or affairs of Borrower and
         its Subsidiaries. As long as no Default or Event of Default has
         occurred and is continuing, Lender shall provide Borrower with advance
         notice of any such inquiry to Borrower's accountants. Borrower may have
         its representatives in attendance at any meetings held between the
         officers or other representatives of Lender or any Participant and
         Borrower's accountants under this authorization.

7.5 (c)  Permit Lender or any Participant (and their authorized representatives)
         access to Borrower's premises and records for the purpose of conducting
         a review of Borrower's general mortgage business methods, policies and
         procedures, auditing its loan files, and reviewing the financial and
         operational aspects of Borrower's business.

7.6.     NOTICE

Give prompt Notice to Lender of (a) any action, suit or proceeding instituted by
or against Borrower or any of its Subsidiaries or its General Partner in any
federal or state court or before any commission or other regulatory body
(federal, state or local, domestic or foreign), which action, suit or proceeding
has at issue in excess of $500,000 (or, in the case of a personal injury claim
fully covered by insurance, $1,000,000), or any such proceedings threatened
against Borrower or any of its Subsidiaries or its General Partner in a writing
containing the details of that action, suit or proceeding; (b) the filing,
recording or assessment of any federal, state or local tax Lien against
Borrower, or any of its assets or any of its Subsidiaries or its General
Partner; (c) an Event of Default; (d) a Default that continues for more than 5
days; (e) the transfer, loss, nonrenewal or termination of any Servicing
Contracts to which Borrower is a party, or which is held for the benefit of
Borrower, and the reason for that transfer, loss, nonrenewal or termination; (f)
any Prohibited Transaction with respect to any Plan, specifying the nature of
the Prohibited Transaction and what action Borrower proposes to take with
respect to it; and (g) any other action, event or condition of any nature that
may lead to or result in a material adverse change in the business, operations,
assets or financial condition of Borrower or any of its Subsidiaries or any of
its General Partners.

7.7.     PAYMENT OF DEBT, TAXES AND OTHER OBLIGATIONS

Pay, perform and discharge, or cause to be paid, performed and discharged, all
of the obligations and indebtedness of Borrower and its Subsidiaries, all taxes,
assessments and governmental charges or levies imposed upon Borrower or its
Subsidiaries or upon their respective income, receipts or properties before
those taxes, assessments and governmental charges or levies become past due, and
all lawful claims for labor, materials and supplies or otherwise that, if
unpaid, might become a Lien or charge upon any of their respective properties or
assets. Borrower and its Subsidiaries are not required to pay, however, any
taxes, assessments and governmental charges or levies or claims for labor,
materials or supplies for which Borrower or its Subsidiaries have obtained an
adequate bond or adequate insurance or that are being contested in good faith
and by proper proceedings that are being reasonably and diligently pursued and
for which proper reserves have been created.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

7.8.     INSURANCE

Maintain blanket bond coverage and errors and omissions insurance or mortgage
impairment insurance, and liability insurance and fire and other hazard
insurance on its properties, in each case with responsible insurance companies
acceptable to Lender, in such amounts and against such risks as is customarily
carried by similar businesses operating in the same vicinity. Copies of such
policies must be furnished to Lender without charge upon request of Lender.

7.9.     SUBORDINATION OF CERTAIN INDEBTEDNESS

Cause any indebtedness of Borrower to any partner or Affiliate or any
shareholder, director or officer of any partner or Affiliate of Borrower, or to
any Guarantor, which indebtedness has a term of more than 1 year or is in excess
of $25,000, to be subordinated to the Obligations by the execution and delivery
to Lender of a Subordination of Debt Agreement, on the form prescribed by
Lender, certified by the General Partner of Borrower to be true and complete and
in full force and effect.

7.10.    OTHER LOAN OBLIGATIONS

Perform all material obligations under the terms of each loan agreement, note,
mortgage, security agreement or debt instrument by which Borrower is bound or to
which any of its property is subject, and promptly notify Lender in writing of a
declared default under or the termination, cancellation, reduction or nonrenewal
of any of its other lines of credit or agreements with any other Lender. Exhibit
F is a true and complete list of all such lines of credit or agreements as of
the date of this Agreement. Borrower must give Lender at least 30 days Notice
before entering into any additional lines of credit or agreements.

7.11.    ERISA

Maintain (and, if applicable, cause each ERISA Affiliate to maintain) each Plan
in compliance with all material applicable requirements of ERISA and of the
Internal Revenue Code and with all applicable rulings and regulations issued
under the provisions of ERISA and of the Internal Revenue Code, and not (and, if
applicable, not permit any ERISA Affiliate to), (a) engage in any transaction in
connection with which Borrower or any ERISA Affiliate would be subject to either
a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by
Section 4975 of the Internal Revenue Code, in either case in an amount exceeding
$25,000 or (b) fail to make full payment when due of all amounts that, under the
provisions of any Plan, Borrower or any ERISA Affiliate is required to pay as
contributions to that Plan, or permit to exist any accumulated funding
deficiency (as such term is defined in Section 302 of ERISA and Section 412 of
the Internal Revenue Code), whether or not waived, with respect to any Plan in
an aggregate amount exceeding $25,000.

7.12.    HEDGING ARRANGEMENTS

Maintain Hedging Arrangements with respect to the risk that the market value of
Borrower's portfolio of fixed rate Mortgage Loans held for sale and not covered
by Purchase Commitments (including, without limitation, any such Mortgage Loans
that are Pledged Loans) will change as a result of changes in interest rates
prior to the sale of such Mortgage Loans mitigating, in accordance with
Borrower's hedging practices that are reasonably acceptable to Lender, the risk
that the value of such Mortgage Loans will change as a result of changes in
interest rates.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

7.13.    CLOSING INSTRUCTIONS

         Indemnify and hold Lender harmless from and against any loss, including
         reasonable attorneys' fees and costs, attributable to the failure of
         any title insurance company, agent or attorney to comply with
         Borrower's disbursement or instruction letter relating to any Mortgage
         Loan or Mezzanine Investment. Lender has the right to pre-approve, such
         approval not to be unreasonably withheld or delayed, Borrower's choice
         of title insurance company, agent or attorney and Borrower's
         disbursement or instruction letter to them in any case in which
         Borrower intends to obtain a Structured Facility Advance against the
         Mortgage Loan or Mezzanine Investment to be created at settlement or to
         pledge that Mortgage Loan or Mezzanine Investment as Collateral under
         this Agreement.

7.14.    USE OF PROCEEDS OF STRUCTURED FACILITY ADVANCES

Use the proceeds of each Structured Facility Advance solely for the purpose of
funding the origination or acquisition of (i) Bridge Mortgage Loans, (ii) Note
Acquisition Loans, (iii) Mezzanine Investments or (iv) Multifamily Properties
acquired in Property Acquisition. Structured Facility Advances, other than
Structured Facility Advances made to finance Property Acquisitions, will be made
against the pledge of those Eligible Investments as Collateral. Structured
Facility Advances made to finance Property Acquisitions will be made against (i)
in the case of a Multifamily Property owned by a Property Subsidiary, the pledge
of 100% of the stock or other equity ownership interest in such Property
Subsidiary to Lender, or (ii) in the case of a Multifamily Property owned by
Borrower, a Property Mortgage covering each Multifamily Property.

                                END OF ARTICLE 7

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

NEGATIVE COVENANTS

As long as the Structured Facility Commitment is outstanding or there remain any
Obligations to be paid or performed, Borrower must not, either directly or
indirectly, without the prior written consent of Lender:

8.1.     CONTINGENT LIABILITIES

Assume, guarantee, endorse or otherwise become contingently liable for the
obligation of any Person except by endorsement of negotiable instruments for
deposit or collection in the ordinary course of business, and except for
obligations arising in connection with the sale of Mortgage Loans with recourse
in the ordinary course of Borrower's business.

8.2.     PLEDGE OF SERVICING CONTRACTS

Pledge or grant a security interest in any existing or future Servicing
Contracts of Borrower other than to Lender, or omit to take any action required
to keep all of Borrower's Servicing Contracts in full force and effect.

8.3.     RESTRICTIONS ON FUNDAMENTAL CHANGES

8.3 (a)  Consolidate, merge or enter into any analogous reorganization or
         transaction with any Person.

8.3 (b)  Amend or otherwise modify Borrower's certificate of limited partnership
         or partnership agreement.

8.3 (c)  Liquidate, wind up or dissolve (or suffer any liquidation or
         dissolution).

8.3 (d)  Cease actively to engage in the business of originating or acquiring
         Mortgage Loans or Mezzanine Investments or make any other material
         change in the nature or scope of the business in which Borrower engages
         as of the date of this Agreement.

8.3 (e)  Sell, assign, lease, convey, transfer or otherwise dispose of (whether
         in one transaction or a series of transactions) all or any substantial
         part of Borrower's business or assets, whether now owned or acquired
         after the Closing Date, other than, in the ordinary course of business
         and to the extent not otherwise prohibited by this Agreement, sales of
         (1) Mortgage Loans, (2) Mortgage-backed Securities and (3) Mezzanine
         Investments.

8.3 (f)  Acquire by purchase or in any other transaction all or substantially
         all of the business or property of, or all or substantially all of the
         stock or other ownership interests of, any Person, except in connection
         with the collection or restructuring of any loan made or Equity
         Interest acquired by Borrower in the ordinary course of its business.

8.3 (g)  Permit any Subsidiary of Borrower to do or take any of the foregoing
         actions.

8.4.     DEFERRAL OF SUBORDINATED DEBT

Except as permitted in the Subordination of Debt Agreement related thereto, pay
any Subordinated Debt of Borrower in advance of its stated maturity or, after a
Default or Event of Default under this Agreement has occurred, make any payment
of any kind on any Subordinated

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

Debt of Borrower until all of the Obligations have been paid and performed in
full and any applicable preference period has expired.

8.5.     ACCOUNTING CHANGES

Make, or permit any Subsidiary of Borrower to make, any significant change in
accounting treatment or reporting practices, except as required by GAAP, or
change its fiscal year or the fiscal year of any Subsidiary of Borrower.

8.6.     LEVERAGE RATIO

Permit Borrower's Leverage Ratio at any time to exceed 6 to 1.

8.7.     MINIMUM MODIFIED NET WORTH

Permit Modified Net Worth of Borrower (and its Subsidiaries, on a consolidated
basis) at any time to be less than $115,000,000 plus 80% of the net proceeds of
any private placement or initial public offering of Equity Interests in the
Guarantor conducted after the Closing Date.

8.8.     MINIMUM LIQUID ASSETS

Permit Borrower's Liquid Assets at any time to be less than $3,000,000.

8.9.     PORTFOLIO PERFORMANCE RATIO

Permit Borrower's Portfolio Performance Ratio, measured as of the last day of
each month, to be less than 1.25 to 1.00.

8.10.    PROFITABILITY

Permit Borrower's (and its Subsidiaries, on a consolidated basis) net income for
any fiscal year to be less than zero.

8.11.    DISTRIBUTIONS TO PARTNERS

Make any distributions to Borrower's partners (including any purchase or
redemption of partnership interests), if a Default or an Event of Default exists
or would occur as a result of the distribution.

8.12.    TRANSACTIONS WITH AFFILIATES

Directly or indirectly (a) make any loan, advance, extension of credit or
capital contribution to any of Borrower's Affiliates, (b) sell, transfer, pledge
or assign any of its assets to or on behalf of those Affiliates, (c) merge or
consolidate with or purchase or acquire assets from those Affiliates, or (d) pay
management fees in excess of those provided for under the Management Agreement
in effect on the date of this Agreement; provided, however, that Borrower or any
Subsidiary may engage in any transaction described in clause (a) or (b) above if
such transaction is in the ordinary course of its business pursuant to the
reasonable requirements of Borrower's or such Subsidiary's business and, except
in the case of wholly-owned, special purpose Subsidiaries, upon fair and
reasonable terms no less favorable to Borrower or such Subsidiary than Borrower
or such Subsidiary would obtain in a comparable arms-length transaction.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

8.13.    SERVICING CONTRACTS

Acquire or enter into Servicing Contracts with any Person other than ACM.

                                END OF ARTICLE 8

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL

9.1.     SPECIAL REPRESENTATIONS AND WARRANTIES CONCERNING STRUCTURED FACILITY
         COLLATERAL

Borrower represents and warrants to Lender, as of the date of this Agreement and
as of the date of each Structured Facility Advance Request and the making of
each Structured Facility Advance, that:

9.1 (a)  Borrower has not selected the Collateral in a manner so as to affect
         adversely Lender's interests.

9.1 (b)  Borrower is the legal and equitable owner and holder, free and clear of
         all Liens (other than Liens granted under this Agreement or the
         Existing ACM Agreement) of the Pledged Assets (including the Initial
         Eligible Investments) or of the Property Subsidiary that owns the
         Multifamily Properties against which Structured Facility Advances are
         outstanding. All Pledged Assets and any related Purchase Commitments
         have been duly authorized and validly issued to Borrower, and all of
         the foregoing items of Collateral comply with all of the requirements
         of this Agreement, and have been and will continue to be validly
         pledged or assigned to Lender, subject to no other Liens.

9.1 (c)  Borrower has, and will continue to have, the full right, power and
         authority to pledge the Collateral pledged and to be pledged by it
         under this Agreement.

9.1 (d)  Any Mortgage Loan and any related document included in the Pledged
         Investments (1) has been duly executed and delivered by the parties
         thereto, (2) has been made in compliance with all applicable
         requirements of the Real Estate Settlement Procedures Act, Equal Credit
         Opportunity Act, the federal Truth-In-Lending Act and all other
         applicable laws and regulations, (3) is and will continue to be valid
         and enforceable in accordance with its terms, without defense or
         offset, (4) has not been modified or amended except in writing, which
         writing is part of the Collateral Documents, nor any requirements
         thereof waived, (5) has been evaluated or appraised in accordance with
         Title XI of FIRREA, and (6) complies and will continue to comply with
         the terms of this Agreement. Each Mortgage Loan has or will have a
         title insurance policy, in American Land Title Association form or
         equivalent thereof, from a recognized title insurance company, insuring
         the priority of the Lien of the Mortgage and meeting the usual
         requirements of Investors purchasing such Mortgage Loans.

9.1 (e)  Any Mezzanine Investment that is not a Mortgage Loan (1) has been duly
         executed and delivered by the related obligor, (2) has been made in
         compliance with all applicable laws and regulations, (3) is and will
         continue to be valid and enforceable in accordance with its terms,
         without defense or offset, except as limited by bankruptcy, insolvency
         or other such laws affecting the enforcement of creditors' right and by
         general principles of equity, (4) has not been modified or amended,
         except in writing, which writing is part of the Collateral Documents,
         nor any requirements thereof waived, (5) is not required to be
         registered under any federal or applicable state securities laws, and
         (6) complies and will continue to comply with the terms of this
         Agreement. Each such Mezzanine Investment has been fully advanced.

9.1 (f)  No default has occurred and is continuing for more than 60 days under
         any Mortgage Loan or other loan included in the Pledged Investments,
         and no related borrower has failed to declare and pay any scheduled
         preferred dividends or other income payments in respect of

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

         any Preferred Equity Interest included in the Pledged Investments,
         without the Structured Facility Advance against such Pledged Investment
         having been repaid in accordance with Section 3.3(c) hereof.

9.1 (g)  Properties securing or otherwise backing Pledged Investments, and
         Multifamily Properties against which Structured Facility Advances are
         outstanding located in a special flood hazard area designated as such
         by the Director of the Federal Emergency Management Agency are and
         shall continue to be covered by special flood insurance under the
         National Flood Insurance Program.

9.1 (h)  Each Pledged Asset is secured by a Mortgage on, or is otherwise backed
         by, real property and improvements located in one of the states of the
         United States or the District of Columbia.

9.1 (i)  Each Pledged Investment other than a Note Acquisition Loan has been
         closed or acquired or will be closed and funded with the Structured
         Facility Advance made against it.

9.1 (j)  Each Bridge Mortgage Loan, Note Acquisition Loan and Mezzanine
         Investment pledged hereunder is an Eligible Mortgage Investment.

9.1 (k)  The Mortgage Note for each Pledged Investment is (1) payable or
         endorsed to the order of Borrower, (2) an "instrument" within the
         meaning of Article 9 of the Uniform Commercial Code of all applicable
         jurisdictions and (3) is denominated and payable in United States
         dollars.

9.1 (l)  No party to a Mortgage Loan or any related document is in violation of
         any applicable law, rule or regulation that would impair the
         collectibility of the Mortgage Loan or the performance by the mortgagor
         or any other obligor of its obligations under the Mortgage Note or any
         related document.

9.1 (m)  All fire and casualty policies covering the real property and
         improvements encumbered by each Mortgage included in the Pledged
         Investments, or a Multifamily Property against which a Structured
         Facility Advance is outstanding, (1) name and will continue to name
         Borrower and its successors and assigns as the insured under a standard
         mortgagee clause, except in the case of a Multifamily Property against
         which a Structured Facility Advance is outstanding, (2) are and will
         continue to be in full force and effect and (3) afford and will
         continue to afford insurance against fire and such other risks as are
         usually insured against in the broad form of extended coverage
         insurance generally available.

9.1 (n)  Neither Borrower nor any of Borrower's Affiliates has any ownership
         interest, right to acquire any ownership interest or equivalent
         economic interest in any Multifamily Property or Health Care Facility
         securing a Pledged Investment or the mortgagor under the Pledged
         Investment or any other obligor on the Mortgage Note for such Pledged
         Investment, except for (1) Bridge Mortgage Loans, (2) any such interest
         constituting a Mezzanine Investment, and (3) any such interest acquired
         as additional compensation for providing such Pledged Investment.

9.1 (o)  The original assignments of Mortgage delivered to Lender for each
         Pledged Investment that is a Mortgage Loan are in recordable form and
         comply with all applicable laws and regulations governing the filing
         and recording of such documents.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

9.1 (p)  None of the mortgagors, guarantors or other obligors of any Pledged
         Investment is a Person named in any Restriction List and to whom the
         provision of financial services is prohibited or otherwise restricted
         by applicable law.

9.2.     SPECIAL AFFIRMATIVE COVENANTS CONCERNING COLLATERAL.

As long as the Structured Facility Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other Loan
Document, Borrower must:

9.2 (a)  Warrant and defend the right, title and interest of Lender in and to
         the Collateral against the claims and demands of all Persons
         whomsoever.

9.2 (b)  Service or cause to be serviced all Mortgage Loans in accordance with
         the Underwriting Guidelines, including without limitation taking all
         actions necessary to enforce the obligations of the obligors under such
         Mortgage Loans. Service or cause to be serviced all Mortgage Loans
         serviced pursuant to Servicing Contracts included in the Servicing
         Portfolio in accordance with the applicable Servicing Contract and all
         applicable HUD, Fannie Mae, Freddie Mac and Investor requirements,
         including without limitation taking all actions necessary to enforce
         the obligations of the obligors under such Mortgage Loans. Borrower
         will hold all escrow funds collected in respect of Pledged Investments
         and Mortgage Loans backing Pledged Securities in trust, without
         commingling the same with non-custodial funds, and apply the same for
         the purposes for which such funds were collected.

9.2 (c)  Pay (or require to be paid) prior to their becoming delinquent all
         taxes, assessments, insurance premiums, charges, encumbrances and liens
         now or hereafter imposed upon or affecting any Collateral or Servicing
         Contracts included in the Servicing Portfolio (provided, that nothing
         herein shall require Borrower to discharge Liens on properties subject
         to Mortgage Loans serviced by Borrower).

9.2 (d)  Execute and deliver to Lender such further instruments of sale, pledge
         or assignment or transfer, and such powers of attorney, as required by
         Lender, and shall do and perform all matters and things necessary or
         desirable to be done or observed, for the purpose of effectively
         creating, maintaining and preserving the security and benefits intended
         to be afforded Lender under this Agreement. Lender will have all the
         rights and remedies of a secured party under the Uniform Commercial
         Code of Minnesota, or any other applicable law, in addition to all
         rights provided for herein.

9.2 (e)  Record in the appropriate recording office to perfect a Lien on each
         Multifamily Property owned by Borrower against which a Structured
         Facility Advance has been requested a Property Mortgage with respect to
         such Multifamily Property, including the payment of all recording fees
         or taxes.

9.2 (f)  Promptly upon execution thereof, deliver to Lender a copy of any
         contract entered into by Borrower for the sale, transfer or other
         disposition of any Multifamily Property against which a Structured
         Facility Advance has been made.

9.2 (g)  Instruct the purchaser of any Multifamily Property against which a
         Structured Facility Advance has been made to wire transfer the purchase
         proceeds of such Multifamily Property to the Cash Collateral Account.

9.2 (h)  Deliver all certificates and instruments representing or evidencing the
         Pledged Shares to Lender, together with stock powers or other
         instruments of assignment, duly completed in blank contemporaneously
         with the making of the related Structured Facility Advance.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

9.2 (i)  (i) Cause each issuer of the Pledged Shares not to issue any stock or
         other securities in addition to or in substitution for the Pledged
         Shares issued by such issuer, except to Borrower, and (ii) pledge
         hereunder, immediately upon its acquisition (directly or indirectly)
         thereof, any and all additional shares of stock or other securities of
         each issuer of the Pledged Shares.

9.2 (j)  From and after the occurrence and during the continuance of an Event of
         Default, within 20 days after the request of Lender, deliver to Lender
         an appraisal of any Property securing or otherwise backing an Eligible
         Investment against which a Structured Facility Advance is outstanding,
         setting forth the Appraised Property Value of that Property.

9.2 (k)  Compare the names of every mortgagor, guarantor and other obligor of
         every Mortgage Loan, together with appropriate identifying information
         concerning those Persons obtained by Borrower, against every
         Restriction List, and make certain that none of the mortgagors,
         guarantors or other obligors of any Mortgage Loan is a Person named in
         any Restriction List and to whom the provision of financial services is
         prohibited or otherwise restricted by applicable law.

9.2 (l)  Review the Underwriting Guidelines periodically to confirm that those
         policies and procedures are being complied with in all material
         respects and are adequate to meet Borrower's business objectives.

9.3.     SPECIAL NEGATIVE COVENANTS CONCERNING COLLATERAL

As long as the Structured Facility Commitment is outstanding or there remain any
Obligations to be paid or performed, Borrower must not, either directly or
indirectly, without the prior written consent of Lender:

9.3 (a)  Amend or modify, or waive any of the terms and conditions of, or settle
         or compromise any claim in respect of, any Pledged Investments or
         Pledged Securities, except for amendments or modifications which (i) do
         not affect or relate to the principal, interest or any other payments
         due under the Pledged Investment, (ii) would not result in the Pledged
         Investment being ineligible to be financed under this Agreement and
         (iii) do not materially and adversely affect the mortgagee's remedies
         under such Pledged Investment.

9.3 (b)  Borrower shall not sell, assign, transfer or otherwise dispose of, or
         grant any option with respect to, or pledge or otherwise encumber
         (except pursuant to this Agreement or as permitted herein) any of the
         Collateral.

9.3 (c)  Borrower shall not make any compromise, adjustment or settlement in
         respect of any of the Collateral or accept other than cash in payment
         or liquidation of the Collateral without providing prior written notice
         thereof to Lender.

9.3 (d)  Borrower shall not make any material change in the Underwriting
         Guidelines without providing the notice required pursuant to Section
         7.2(e) of this Agreement.

9.4.     SPECIAL REPRESENTATIONS CONCERNING MULTIFAMILY PROPERTIES

Borrower hereby represents and warrants to Lender, as of the date of this
Agreement and as of the date of each Structured Facility Advance Request for a
Structured Facility Advance against a Multifamily Property acquired in a
Property Acquisition and the making of each such Structured Facility Advance,
that each Property Mortgage is in full force and effect, is legal, valid and
enforceable in accordance with its terms, except as may be limited by
bankruptcy, insolvency or other laws affecting the enforcement of creditors'
rights and by general principles of equity, and

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

no default or event which, with notice or lapse of time or both, would become a
default, exists under any such Property Mortgage.

9.5.     SPECIAL REPRESENTATIONS CONCERNING PLEDGED SHARES

Borrower represents and warrants to Lender, as of the date of this Agreement and
as of the date of each Structured Facility Advance Request for a Structured
Facility Advance and the making of each such Structured Facility Advance, that:

9.5 (a)  Borrower has title to the Pledged Shares and will have title to all
         further Pledged Shares hereafter acquired, free of all Liens except the
         security interest in favor of Lender.

9.5 (b)  Borrower has full power and authority to subject the Pledged Shares to
         the security interest created hereby.

9.5 (c)  No financing statement covering all or part of the Pledged Shares is on
         file in any public office (except for any financing statements filed by
         the Lender).

9.5 (d)  The Pledged Shares have been duly authorized and validly issued by the
         issuer thereof and are fully paid and non-assessable. The certificates
         representing the Pledged Shares are genuine. The Pledged Shares are not
         subject to any offset or similar right or claim of the issuers thereof.

9.5 (e)  The Pledged Shares constitute 100% of the issued and outstanding shares
         of capital stock, the membership interests or the partnership
         interests, as applicable, or the respective issuers thereof.

                                END OF ARTICLE 9

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

DEFAULTS; REMEDIES

10.1.    EVENTS OF DEFAULT

The occurrence of any of the following is an event of default ("Event of
Default"):

10.1 (a) Borrower fails to pay the principal of any Structured Facility Advance
         when due, whether at stated maturity, by acceleration, or otherwise; or
         fails to pay any installment of interest on any Structured Facility
         Advance within 9 days after the date of Lender's invoice or, if
         applicable, within 2 days after the date of Lender's account analysis
         statement; or fails to pay, within any applicable grace period, any
         other amount due under this Agreement or any other Obligation of
         Borrower to Lender.

10.1 (b) Borrower or any of its Subsidiaries or any General Partner of Borrower
         fails to pay, or defaults in the payment of any principal or interest
         on, any other indebtedness or any contingent obligation within any
         applicable grace period; breaches or defaults with respect to any other
         material term of any other indebtedness or of any loan agreement,
         mortgage, indenture or other agreement relating to that indebtedness,
         if the effect of that breach or default is to cause, or to permit the
         holder or holders of that indebtedness (or a trustee on behalf of such
         holder or holders) to cause, indebtedness of Borrower or its
         Subsidiaries or any General Partner of Borrower in the aggregate amount
         of $250,000 or more to become or be declared due before its stated
         maturity (upon the giving or receiving of notice, lapse of time, both,
         or otherwise).

10.1 (c) Borrower fails to perform or comply with any term or condition
         applicable to it contained in Section 7.3, Section 7.14 or in any
         Section of Article 8.

10.1 (d) Any representation or warranty made or deemed made by Borrower or any
         General Partner of Borrower under this Agreement, in any other Loan
         Document (other than the representations and warranties set forth in
         Section 9) or in any written statement or certificate at any time given
         by Borrower or any General Partner of Borrower is inaccurate or
         incomplete in any material respect on the date as of which it is made
         or deemed made.

10.1 (e) Borrower defaults in the performance of or compliance with any term
         contained in this Agreement or any other Loan Document other than those
         referred to in Sections 10.1(a), 10.1 (c) or 10.1 (d) and such default
         has not been remedied or waived within 30 days after the earliest of
         (1) receipt by Borrower of Notice from Lender of that default, (2)
         receipt by Lender of Notice from Borrower of that default or (3) the
         date Borrower should have notified Lender of that default under Section
         7.6 of this Agreement.

10.1 (f) An "event of default" (however defined) occurs under any agreement
         between Borrower and Lender other than this Agreement and the other
         Loan Documents or an "event of default" (however defined) occurs under
         the Management Agreement or the Servicing Agreement.

10.1 (g) A case (whether voluntary or involuntary) is filed by or against
         Borrower or any Subsidiary of Borrower or the Guarantor under any
         applicable bankruptcy, insolvency or other similar federal or state
         law; or a court of competent jurisdiction appoints a receiver (interim
         or permanent), liquidator, sequestrator, trustee, custodian or other
         officer having similar powers over Borrower or any Subsidiary of
         Borrower or the Guarantor, or over all or a substantial part of their
         respective properties or assets; or Borrower or any

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

         Subsidiary of Borrower or the Guarantor (1) consents to the appointment
         of or possession by a receiver (interim or permanent), liquidator,
         sequestrator, trustee, custodian or other officer having similar powers
         over Borrower or any Subsidiary of Borrower, or the Guarantor, or over
         all or a substantial part of their respective properties or assets, (2)
         makes an assignment for the benefit of creditors, or (3) fails, or
         admits in writing its inability, to pay its debts as those debts become
         due.

10.1 (h) Lender's security interest on any portion of the Collateral becomes
         unenforceable or otherwise impaired.

10.1 (i) A wholly-owned Subsidiary of Guarantor ceases to be the General Partner
         of Borrower.

10.1 (j) Guarantor for any reason ceases to be a real estate investment trust
         for United States federal tax purposes.

10.1 (k) Any Person other than ACM is the servicer with respect to any
         Collateral.

10.1 (l) Guarantor creates or enters into any operating partnership or
         investment vehicle other than Borrower.

10.2.    REMEDIES

10.2 (a) If an Event of Default described in Section 10.1(g) occurs with respect
         to Borrower or Guarantor, the Structured Facility Commitment will
         automatically terminate and the unpaid principal amount of and accrued
         interest on the Structured Facility Note and all other Obligations will
         automatically become due and payable, without presentment, demand or
         other Notice or requirements of any kind, all of which Borrower
         expressly waives.

10.2 (b) If any other Event of Default occurs, Lender may, by Notice to
         Borrower, terminate the Structured Facility Commitment and declare the
         Obligations to be immediately due and payable.

10.2 (c) If any Event of Default occurs, Lender may also take any of the
         following actions:

         (1)      Foreclose upon or otherwise enforce its security interest in
                  and Lien on the Collateral to secure all payments and
                  performance of the Obligations in any manner permitted by law
                  or provided for in the Loan Documents.

         (2)      Notify all obligors under any of the Collateral that the
                  Collateral has been assigned to Lender (or to another Person
                  designated by Lender) and that all payments on that Collateral
                  are to be made directly to Lender (or such other Person);
                  settle, compromise or release, in whole or in part, any
                  amounts any obligor or Investor owes on any of the Collateral
                  on terms acceptable to Lender; enforce payment and prosecute
                  any action or proceeding involving any of the Collateral; and
                  where any Collateral is in default, foreclose on and enforce
                  any Liens securing that Collateral in any manner permitted by
                  law and sell any property acquired as a result of those
                  enforcement actions.

         (3)      Prepare and submit for filing Uniform Commercial Code
                  amendment statements evidencing the assignment to Lender or
                  its designee of any Uniform Commercial Code financing
                  statement filed in connection with any item of Collateral.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

         (4)      Act, or contract with a third party to act, at Borrower's
                  expense, as servicer or subservicer of Collateral requiring
                  servicing, and perform all obligations required under any
                  Collateral, including Servicing Contracts and Purchase
                  Commitments.

         (5)      Require Borrower to assemble and make available to Lender the
                  Collateral and all related books and records at a place
                  designated by Lender.

         (6)      Enter onto property where any Collateral or related books and
                  records are located and take possession of those items with or
                  without judicial process; and obtain access to Borrower's data
                  processing equipment, computer hardware and software relating
                  to the Collateral and use all of the foregoing and the
                  information contained in the foregoing in any manner Lender
                  deems necessary for the purpose of effectuating its rights
                  under this Agreement and any other Loan Document.

         (7)      Before the disposition of the Collateral, prepare it for
                  disposition in any manner and to the extent Lender deems
                  appropriate.

         (8)      Exercise all rights and remedies of a secured creditor under
                  the Uniform Commercial Code of Minnesota or other applicable
                  law, including selling or otherwise disposing of all or any
                  portion of the Collateral at one or more public or private
                  sales, whether or not the Collateral is present at the place
                  of sale, for cash or credit or future delivery, on terms and
                  conditions and in the manner as Lender may determine,
                  including sale under any applicable Purchase Commitment.
                  Lender will give Borrower not less than 10 days' notice of any
                  public sale or of the date after which any private sale may be
                  held. Borrower agrees that 10 days' notice is reasonable
                  notice. Lender may, without notice or publication, adjourn any
                  public or private sale one or more times by announcement at
                  the time and place fixed for the sale, and the sale may be
                  held at any time or place announced at the adjournment. In the
                  case of a sale of all or any portion of the Collateral on
                  credit or for future delivery, the Collateral sold on those
                  terms may be retained by Lender until the purchaser pays the
                  selling price or takes possession of the Collateral. Lender
                  has no liability to Borrower if a purchaser fails to pay for
                  or take possession of Collateral sold on those terms, and in
                  the case of any such failure, Lender may sell the Collateral
                  again upon notice complying with this Section.

         (9)      Instead of or in conjunction with exercising the power of sale
                  authorized by Section 10.2(c)(8), Lender may proceed by suit
                  at law or in equity to collect all amounts due on the
                  Collateral, or to foreclose Lender's Lien on and sell all or
                  any portion of the Collateral pursuant to a judgment or decree
                  of a court of competent jurisdiction.

         (10)     Proceed against Borrower on the Structured Facility Note or
                  against the Guarantor under the Guaranty.

         (11)     Retain all excess proceeds from the sale or other disposition
                  of the Collateral, and apply them to the payment of the
                  Obligations under Section 10.3.

10.2 (d) Lender will incur no liability as a result of the commercially
         reasonable sale or other disposition of all or any portion of the
         Collateral at any public or private sale or other disposition. Borrower
         waives (to the extent permitted by law) any claims it may have against
         Lender arising by reason of the fact that the price at which the
         Collateral may have been sold at a private sale was less than the price
         that Lender might have

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

         obtained at a public sale, or was less than the aggregate amount of the
         outstanding Structured Facility Advances, accrued and unpaid interest
         on those Structured Facility Advances, and unpaid fees, even if Lender
         accepts the first offer received and does not offer the Collateral to
         more than one offeree. Borrower agrees that any sale of Collateral
         under the terms of a Purchase Commitment, or any other disposition of
         Collateral arranged by Borrower, whether before or after the occurrence
         of an Event of Default, will be deemed to have been made in a
         commercially reasonable manner.

10.2 (e) Borrower specifically waives and releases (to the extent permitted by
         law) any equity or right of redemption, stay or appraisal that Borrower
         has or may have under any rule of law or statute now existing or
         adopted after the date of this Agreement, and any right to require
         Lender to (1) proceed against any Person, (2) proceed against or
         exhaust any of the Collateral or pursue its rights and remedies against
         the Collateral in any particular order, or (3) pursue any other remedy
         within its power. Lender is not required to take any action to preserve
         any rights of Borrower against holders of mortgages having priority to
         the Lien of any Mortgage or Security Agreement included in the
         Collateral or to preserve Borrower's rights against other prior
         parties.

10.2 (f) Lender may, but is not obligated to, advance any sums or do any act or
         thing necessary to uphold or enforce the Lien and priority of, or the
         security intended to be afforded by, any Mortgage or Security Agreement
         included in the Collateral, including payment of delinquent taxes or
         assessments and insurance premiums. All advances, charges, costs and
         expenses, including reasonable attorneys' fees and disbursements,
         incurred or paid by Lender in exercising any right, power or remedy
         conferred by this Agreement, or in the enforcement of this Agreement,
         together with interest on those amounts at the Default Rate, from the
         time paid by Lender until repaid by Borrower, are deemed to be
         principal outstanding under this Agreement and the Structured Facility
         Note.

10.2 (g) No failure or delay on the part of Lender to exercise any right, power
         or remedy provided in this Agreement or under any other Loan Document,
         at law or in equity, will operate as a waiver of that right, power or
         remedy. No single or partial exercise by Lender of any right, power or
         remedy provided under this Agreement or any other Loan Document, at law
         or in equity, precludes any other or further exercise of that right,
         power, or remedy by Lender, or Lender's exercise of any other right,
         power or remedy. Without limiting the foregoing, Borrower waives all
         defenses based on the statute of limitations to the extent permitted by
         law. The remedies provided in this Agreement and the other Loan
         Documents are cumulative and are not exclusive of any remedies provided
         at law or in equity.

10.2 (h) Borrower grants Lender a license or other right to use, without charge,
         Borrower's computer programs, other programs, labels, patents,
         copyrights, rights of use of any name, trade secrets, trade names,
         trademarks, service marks and advertising matter, or any property of a
         similar nature, as it pertains to the Collateral, in advertising for
         sale and selling any of the Collateral and Borrower's rights under all
         licenses and all other agreements related to the foregoing inure to
         Lender's benefit until the Obligations are paid in full.

10.3.    APPLICATION OF PROCEEDS

Lender may apply the proceeds of any sale, disposition or other enforcement of
Lender's Lien on all or any portion of the Collateral to the payment of the
Obligations in the order Lender determines in its sole discretion. From and
after the indefeasible payment to Lender of all of the Obligations, any
remaining proceeds of the Collateral will be paid to Borrower, or to its
successors or assigns, or as a court of competent jurisdiction may direct. If
the proceeds of any

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

sale, disposition or other enforcement of the Collateral are insufficient to
cover the costs and expenses of that sale, disposition or other enforcement and
payment in full of all Obligations, Borrower is liable for the deficiency.

10.4.    LENDER APPOINTED ATTORNEY-IN-FACT

Borrower appoints Lender its attorney-in-fact, with full power of substitution,
for the purpose of carrying out the provisions of this Agreement, the Structured
Facility Note and the other Loan Documents and taking any action and executing
any instruments that Lender deems necessary or advisable to accomplish that
purpose. Borrower's appointment of Lender as attorney-in-fact is irrevocable and
coupled with an interest. Without limiting the generality of the foregoing,
Lender may give notice of its Lien on the Collateral to any Person, either in
Borrower's name or in its own name, endorse all Pledged Investments or Pledged
Securities payable to the order of Borrower, change or cause to be changed the
book-entry registration or name of subscriber or Investor on any Pledged
Security, prepare and submit for filing Uniform Commercial Code amendment
statements with respect to any Uniform Commercial Code financing statements
filed in connection with any item of Collateral or receive, endorse and collect
all checks made payable to the order of Borrower representing payment on account
of the principal of or interest on, or the proceeds of sale of, any of the
Pledged Investments or Pledged Securities and give full discharge for those
transactions. Lender agrees not to exercise the foregoing power of attorney
except after the occurrence and during the continuance of an Event of Default.

10.5.    RIGHT OF SET-OFF

If Borrower defaults in the payment of any Obligation, Lender may, without
Notice to or demand on Borrower (which Notice or demand Borrower expressly
waives), set-off, appropriate or apply any indebtedness at any time owed by
Lender to or for the account of Borrower, against the Obligations, whether or
not those Obligations have matured.

                                END OF ARTICLE 10

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

MISCELLANEOUS

11.1.    NOTICES

Except where telephonic or facsimile notice is expressly authorized by this
Agreement, all communications required or permitted to be given or made under
this Agreement ("Notices") must be in writing and must be sent by manual
delivery, facsimile, overnight courier or United States mail (postage prepaid),
addressed as follows (or at such other address as may be designated by it in a
Notice to the other):

             If to Borrower:             Arbor Realty Limited Partnership
                                         c/o Arbor Commercial Mortgage, LLC
                                         333 Earle Ovington Boulevard, Suite 900
                                         Uniondale, NY  11553-3617
                                         Attention: Frederick Herbst, CFO and
                                                    John Natalone, Treasurer
                                         Facsimile: (516) 832-6409

             If to Lender:               Residential Funding Corporation
                                         7501 Wisconsin Avenue
                                         Bethesda, MD  20814
                                         Attention: Chuck Schweitzer, Director
                                         Facsimile: 301-215-7212

All periods of Notice will be measured from the date of delivery if delivered
manually or by facsimile, from the first Business Day after the date of sending
if sent by overnight courier or from 4 days after the date of mailing if sent by
United States mail, except that Notices to Lender under Article 2 and Section
3.3 (e) shall be deemed to have been given only when actually received by
Lender. Borrower authorizes Lender to accept Borrower's Structured Facility
Advance Requests, shipping requests, wire transfer instructions and security
delivery instructions transmitted to Lender by facsimile and those documents,
when transmitted to Lender by facsimile have the same force and effect as the
originals.

11.2.    REIMBURSEMENT OF EXPENSES; INDEMNITY

Borrower must: (a) pay Lender a document production fee in connection with the
preparation and negotiation of this Agreement; (b) pay such additional
documentation production fees as Lender may require and all out-of-pocket costs
and expenses of Lender, including reasonable fees, service charges and
disbursements of counsel to Lender (including allocated costs of internal
counsel), in connection with the amendment, enforcement and administration of
this Agreement, the Structured Facility Note, and other Loan Documents, the
making, repayment and payment of interest on the Structured Facility Advances
and the payment of all other Obligations under Loan Documents; (c) indemnify,
pay, and hold harmless Lender and any other holder of the Structured Facility
Note from and against, all present and future stamp, documentary and other
similar taxes with respect to the foregoing matters and save Lender and any
other holder of the Structured Facility Note harmless from and against all
liabilities with respect to or resulting from any delay or omission to pay such
taxes; and (d) indemnify, pay and hold harmless Lender and all of its
Affiliates, officers, directors, employees or agents and any subsequent holder
of the Structured Facility Note (collectively called the "Indemnitees") from and
against all liabilities, obligations, losses, damages, penalties, judgments,
suits, costs, expenses and disbursements of every kind or nature (including the
reasonable fees and disbursements of counsel to the Indemnitees (including
allocated costs of internal counsel) in connection with any investigative,
administrative

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

or judicial proceeding, whether or not the Indemnitees have been designated as
parties to such proceeding) that may be imposed upon, incurred by or asserted
against such Indemnitees in any manner relating to or arising out of this
Agreement, the Structured Facility Note, or any other Loan Document or any of
the transactions contemplated by this Agreement, the Structured Facility Note
and the other Loan Documents, including against all liabilities, obligations,
losses, damages, penalties, judgments, suits, costs, expenses and disbursements
of every kind or nature (including the reasonable fees and disbursements of
counsel to the Indemnitees (including allocated costs of internal counsel) in
connection with any investigative, administrative or judicial proceeding,
whether or not the Indemnitees have been designated as parties to such
proceeding) arising from any breach of Sections 9.1(p) and 9.2(k) or the making
of any Mortgage Loan in which any mortgagor, guarantor or other obligor is a
Person named in any Restriction List and to whom the provision of financial
services is prohibited or otherwise restricted by applicable law ("Indemnified
Liabilities"), except that Borrower has no obligation under this Agreement with
respect to Indemnified Liabilities arising from the gross negligence or willful
misconduct of any such Indemnitees. To the extent that the undertaking to
indemnify, pay and hold harmless as set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, Borrower must
contribute the maximum portion that it is permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by the Indemnitees or any of them. The agreement of Borrower contained
in this Article survives the expiration or termination of this Agreement and the
payment in full of the Structured Facility Note. Attorneys' fees and
disbursements incurred in enforcing, or on appeal from, a judgment under this
Agreement are recoverable separately from and in addition to any other amount
included in such judgment, and this clause is intended to be severable from the
other provisions of this Agreement and to survive and not be merged into such
judgment.

11.3.    FINANCIAL INFORMATION

All financial statements and reports furnished to Lender under this Agreement
must be prepared in accordance with GAAP, applied on a basis consistent with
that applied in preparing the financial statements as at the end of and for
Borrower's most recent fiscal year (except to the extent otherwise required to
conform to good accounting practice).

11.4.    TERMS BINDING UPON SUCCESSORS; SURVIVAL OF REPRESENTATIONS

The terms and provisions of this Agreement are binding upon and inure to the
benefit of Borrower, Lender and their respective successors and assigns. All of
Borrower's representations, warranties, covenants and agreements survive the
making of any Structured Facility Advance, and except where a longer period is
set forth in this Agreement, remain effective for as long as the Structured
Facility Commitment is outstanding or there remain any Obligations to be paid or
performed.

11.5.    ASSIGNMENTS AND PARTICIPATIONS

This Agreement and the Obligations of Borrower may not be assigned by Borrower.
Lender may, subject to the limitations set forth below, assign or transfer, in
whole or in part, any Structured Facility Advances, together with its
corresponding rights under this Agreement and the other Loan Documents, and
further may sell participations in all or any part of any Structured Facility
Advances or any other interest in the Obligations or any of its obligations
under this Agreement to another Person. The rights of any such assignee or
participant against Lender in respect of such assignment or participation are
those set forth in the agreement executed by that Lender in favor of the
assignee or participant relating thereto, but such assignee or participant shall
not become a party to this Agreement. Lender shall remain solely responsible to
Borrower for the performance of its obligations under the Loan Documents. Lender
shall retain all voting rights with respect to the Structured Facility Note, the
Structured Facility Advances hereunder and the Structured

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

Facility Commitment. Borrower shall continue to deal solely and directly with
Lender in connection with Lender's rights and obligations under the Loan
Documents. Notwithstanding the foregoing, nothing contained herein shall in any
manner or to any extent affect the right of Lender to assign its Structured
Facility Note and its right to receive and retain payments on its Structured
Facility Note provided Lender remains primarily and directly liable pursuant to
the terms and conditions of this Agreement to keep, observe and perform all of
its obligations under this Agreement. Lender may furnish any information
concerning Borrower in its possession from time to time to Affiliates and to
assignees and participants (including prospective assignees and participants)
and Borrower hereby consents to the provision of such information. Without
limitation of the exclusive right of Lender to collect and enforce such
Obligations, Borrower agrees that each disposition will give rise to a
debtor-creditor relationship of Borrower to the assignee or participant, and
Borrower authorizes each assignee or participant, upon the occurrence of an
Event of Default, to proceed directly by right of setoff, banker's lien, or
otherwise, against any assets of Borrower which may be in the hands of such
assignee or participant.

11.6.    AMENDMENTS

Except as otherwise provided in this Agreement, this Agreement may not be
amended, modified or supplemented unless the amendment, modification or
supplement is set forth in writing signed by both Borrower and Lender.

11.7.    GOVERNING LAW

This Agreement and the other Loan Documents are governed by the laws of the
State of Minnesota, without reference to its principles of conflicts of laws.

11.8.    CONFIDENTIALITY

Lender shall use reasonable efforts to assure that information about Borrower
and its operations, affairs and financial condition, not generally disclosed to
the public or to trade and other creditors, which is furnished to Lender
pursuant to the provisions hereof is used only for the purposes of this
Agreement and any other relationship between the Lender and Borrower and not
divulged to any Person other than the Lender, its Affiliates and their
respective officers, directors, employees and agents, except: (a) to their
attorneys and accountants, (b) in connection with the enforcement of the rights
of Lender hereunder and under the other Loan Documents or otherwise in
connection with applicable litigation, (c) in connection with assignments and
participations and the solicitation of prospective assignees and participants
referred to in Section 11.5 (provided such assignees, participants and
prospecting assignees and participants agree to be bound by this Section 11.8)
and (d) as may otherwise be required or requested by any regulatory authority
having jurisdiction over Lender or by any applicable law, rule, regulation or
judicial process, the opinion of Lender's counsel concerning the making of such
disclosure to be binding on the parties hereto.

11.9.    RELATIONSHIP OF THE PARTIES

This Agreement provides for the making and repayment of Structured Facility
Advances by Lender (in its capacity as a lender) and Borrower (in its capacity
as a borrower), for the payment of interest on those Structured Facility
Advances and for the payment of certain fees by Borrower to Lender. The
relationship between Lender and Borrower is limited to that of creditor and
secured party on the part of Lender and of debtor on the part of Borrower. The
provisions of this Agreement and the other Loan Documents for compliance with
financial covenants and the delivery of financial statements and other operating
reports are intended solely for the benefit of Lender to protect its interest as
a creditor and secured party. Nothing in this Agreement creates

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

or may be construed as permitting or obligating Lender to act as a financial or
business advisor or consultant to Borrower, as permitting or obligating Lender
to control Borrower or to conduct Borrower's operations, as creating any
fiduciary obligation on the part of Lender to Borrower, or as creating any joint
venture, agency, partnership or other relationship between Lender and Borrower
other than as explicitly and specifically stated in the Loan Documents. Borrower
acknowledges that it has had the opportunity to obtain the advice of experienced
counsel of its own choice in connection with the negotiation and execution of
the Loan Documents and to obtain the advice of that counsel with respect to all
matters contained in the Loan Documents, including the waivers of jury trial and
of punitive, consequential, special or indirect damages contained in Sections
11.17 and 11.18, respectively. Borrower further acknowledges that it is
experienced with respect to financial and credit matters and has made its own
independent decisions to apply to Lender for credit and to execute and deliver
this Agreement.

11.10.   SEVERABILITY

If any provision of this Agreement is declared to be illegal or unenforceable in
any respect, that provision is null and void and of no force and effect to the
extent of the illegality or unenforceability, and does not affect the validity
or enforceability of any other provision of the Agreement.

11.11.   OPERATIONAL REVIEWS

From time to time upon request, Borrower will permit Lender or its
representative access to its premises and records for the purpose of conducting
a review of Borrower's general mortgage business methods, policies, and
procedures, auditing loan files and reviewing financial operational aspects of
Borrower's business.

11.12.   CONSENT TO CREDIT REFERENCES

Borrower consents to the disclosure of information regarding Borrower and its
Subsidiaries and their relationships with Lender to Persons making credit
inquiries to Lender. This consent is revocable by Borrower at any time upon
Notice to Lender as provided in Section 11.1.

11.13.   COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which will
be deemed an original, but all of which together constitute but one and the same
instrument.

11.14.   HEADINGS/CAPTIONS

The captions or headings in this Agreement and the other Loan Documents are for
convenience only and in no way define, limit or describe the scope or intent of
any provision of this Agreement or any other Loan Document.

11.15.   ENTIRE AGREEMENT

This Agreement, the Structured Facility Note and the other Loan Documents
represent the final agreement among the parties with respect to their subject
matter, and may not be contradicted by evidence of prior or contemporaneous oral
agreements among the parties. There are no oral agreements among the parties
with respect to the subject matter of this Agreement, the Structured Facility
Note and the other Loan Documents.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

11.16.   CONSENT TO JURISDICTION

AT THE OPTION OF LENDER, THIS AGREEMENT, THE STRUCTURED FACILITY NOTE AND THE
OTHER LOAN DOCUMENTS MAY BE ENFORCED IN ANY STATE OR FEDERAL COURT WITHIN THE
STATE OF MINNESOTA. BORROWER CONSENTS TO THE JURISDICTION AND VENUE OF THOSE
COURTS, AND WAIVES ANY OBJECTION TO THE JURISDICTION OR VENUE OF THOSE COURTS,
INCLUDING THE OBJECTION THAT VENUE IN THOSE COURTS IS NOT CONVENIENT. ANY SUCH
SUIT, ACTION OR PROCEEDING MAY BE COMMENCED AND INSTITUTED BY SERVICE OF PROCESS
UPON BORROWER BY FIRST CLASS REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, ADDRESSED TO BORROWER AT ITS ADDRESS LAST KNOWN TO LENDER. BORROWER'S
CONSENT AND AGREEMENT UNDER THIS SECTION DOES NOT AFFECT LENDER'S RIGHT TO
ACCOMPLISH SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER
JURISDICTION OR COURT. IN THE EVENT BORROWER COMMENCES ANY ACTION IN ANOTHER
JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS, LENDER AT ITS OPTION MAY HAVE THE CASE TRANSFERRED TO A STATE OR
FEDERAL COURT WITHIN THE STATE OF MINNESOTA OR, IF A TRANSFER CANNOT BE
ACCOMPLISHED UNDER APPLICABLE LAW, MAY HAVE BORROWER'S ACTION DISMISSED WITHOUT
PREJUDICE.

11.17.   WAIVER OF JURY TRIAL

BORROWER AND LENDER EACH PROMISES AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY
ISSUE TRIABLE OF RIGHT BY A JURY, AND FULLY WAIVES ANY RIGHT TO TRIAL BY JURY TO
THE EXTENT THAT ANY SUCH RIGHT NOW EXISTS OR ARISES AFTER THE DATE OF THIS
AGREEMENT. THIS WAIVER OF THE RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN,
KNOWINGLY AND VOLUNTARILY, BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS
EACH INSTANCE AND EACH ISSUE FOR WHICH THE RIGHT TO TRIAL BY JURY WOULD
OTHERWISE APPLY. LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO SUBMIT
THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE
PARTIES TO THIS AGREEMENT AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE RIGHT TO
TRIAL BY JURY. FURTHER, BORROWER AND LENDER EACH CERTIFIES THAT NO
REPRESENTATIVE OR AGENT OF THE OTHER PARTY, INCLUDING THE OTHER PARTY'S COUNSEL,
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO ANY OF ITS REPRESENTATIVES OR AGENTS
THAT THE OTHER PARTY WILL NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY
JURY.

11.18.   WAIVER OF PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES

BORROWER AND LENDER EACH WAIVES ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE,
CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES FROM THE OTHER PARTY AND ANY OF THE
OTHER PARTY'S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS WITH RESPECT
TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM
BROUGHT BY BORROWER AGAINST LENDER OR ANY OF LENDER'S AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES OR AGENTS OR BY LENDER AGAINST BORROWER OR ANY OF
BORROWER'S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS WITH RESPECT TO
ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT. THIS WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR
INDIRECT DAMAGES IS KNOWINGLY AND VOLUNTARILY GIVEN BY BORROWER AND LENDER, AND
IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE FOR

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

WHICH THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES
WOULD OTHERWISE APPLY. LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO
SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER
AND THE PARTIES TO THIS AGREEMENT AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE
RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES.

                                END OF ARTICLE 11

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 6

<PAGE>

INITIAL ELIGIBLE INVESTMENTS

12.1.    ASSIGNMENT AND ASSUMPTION

Prior to the Closing Date, ACM is the owner of the Initial Eligible Investments.
ACM has pledged the Initial Eligible Investments to Lender pursuant to the
Existing ACM Agreement. Under the Existing ACM Agreement, Lender must consent to
any transfer or assignment by ACM of the Initial Eligible Investments. On the
Closing Date, ACM desires to transfer and assign all of its right, title and
interest in and to the Initial Eligible Investments to Borrower, subject to the
indebtedness outstanding against the Initial Eligible Investments under the
Existing ACM Agreement (the "Closing Date Asset Transfer"). Borrower desires on
the Closing Date to acquire all of ACM's right, title and interest in and to the
Initial Eligible Investments, and to assume all of ACM's obligations relating to
the Initial Eligible Investments under the Existing ACM Agreement, with all
"Structured Facility Advances" and the "Warehousing Advances" against the
Vermillion and NHP assets outstanding as of the Closing Date under the Existing
ACM Agreement (the "ACM Advances") automatically becoming Structured Facility
Advances under this Agreement as of the Closing Date. Subject to the
satisfaction of all conditions set forth in Sections 5.1 and 5.2, (i) Lender
consents to the Closing Date Asset Transfer, (ii) Lender agrees that all ACM
Advances may be assumed by Borrower and will automatically be deemed to be
Structured Facility Advances under this Agreement, and (iii) Lender agrees that
the outstanding principal balance of "Structured Facility Advances" and the
"Warehousing Advances" against the Vermillion and NHP assets under the Existing
ACM Agreement will be reduced to zero.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

DEFINITIONS

13.1.    DEFINED TERMS

Capitalized terms defined below or elsewhere in this Agreement have the
following meanings or, as applicable, the meanings given to those terms in
Exhibits to this Agreement:

"Accrual Basis" has the meaning set forth in Section 3.1(c).

"ACM" means Arbor Commercial Mortgage, LLC, a New York limited liability
company.

"Acquisition Cost" means (a) with respect to any Mortgage Loan or Mezzanine
Investment purchased, and not originated, by Borrower, the cash purchase price
paid by Borrower to acquire such Mortgage Loan or Mezzanine Investment minus any
portion thereof specifically identified as attributable to amounts other than
principal payable with respect to such Mortgage Loan or Mezzanine Investment,
and (b) with respect to any Multifamily Property acquired in a Property
Acquisition, the cash purchase price by Borrower to acquire such Multifamily
Property plus related costs, including, without limitation, brokers fees or
commissions, title insurance premiums, legal fees and casualty insurance
premiums, in an aggregate amount not to exceed 3% of such cash purchase price.

"Advance Rate" means, with respect to any Eligible Investment, the Advance Rate
set forth in Exhibit H for that type of Eligible Investment.

"Affiliate" means, when used with reference to any Person, (a) each Person that,
directly or indirectly, controls, is controlled by or is under common control
with, the Person referred to, (b) each Person that beneficially owns or holds,
directly or indirectly, 5% or more of any class of voting Equity Interests of
the Person referred to, (c) each Person, 5% or more of the voting Equity
Interests of which is beneficially owned or held, directly or indirectly, by the
Person referred to, and (d) each of such Person's officers, directors, joint
venturers and partners. For these purposes, the term "control" (including the
terms "controlled by" and "under common control with") means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of the Person in question.

"Agreement" means this Structured Facility Warehousing Credit and Security
Agreement, either as originally executed or as it may be amended, restated,
renewed or replaced.

"Appraised Property Value" means with respect to an interest in real property,
the then current fair market value of the real property and any improvements on
it as of recent date determined in accordance with Title XI of FIRREA by a
qualified appraiser who is a member of the American Institute of Real Estate
Appraisers or other group of professional appraisers.

"Approved Custodian" means a pool custodian or other Person that Lender deems
acceptable, in its sole discretion, to hold Mortgage Loans for inclusion in a
Mortgage Pool or to hold Mortgage Loans as agent for an Investor that has issued
a Purchase Commitment for those Mortgage Loans.

"ARLP Member Entity" means a corporation, limited liability company or limited
partnership that is a wholly-owned Subsidiary of Borrower and the organizational
documents of which provide that such Person (a) was formed or organized solely
for the purpose of owning a Preferred Equity Interest, (b) will not engage in
any business other than the ownership of that Preferred Equity Interest, (c)
will not own any assets other than that Preferred Equity Interest, (d) will not
incur any liabilities, other than

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 1

<PAGE>

(i) liabilities to the entity in which it holds such Preferred Equity Interest,
(ii) under the Loan Documents, and (iii) incidental liabilities relating to its
legal status, (e) will maintain its own books, records and accounts separate and
apart from those of any other Person, and (f) will hold itself out as being a
legal entity separate and distinct from any other Person.

"Audited Statement Date" means the date of Borrower's most recent audited
financial statements (and, if applicable, Borrower's Subsidiaries, on a
consolidated basis) delivered to Lender under this Agreement.

"Balance Funded Portion" has the meaning set forth in Section 3.1(b).

"Balance Funded Rate" means, for any Structured Facility Advance, the Balance
Funded Rate specified for that Advance in Exhibit H.

"Balance Funding Credit" has the meaning set forth in Section 3.1(b).

"Bank One" means Bank One, National Association, or any successor bank.

"Bank One Prime Rate" means, as of any date of determination, the highest prime
rate quoted by Bank One and most recently published by Bloomberg L.P. If the
prime rate for Bank One is not quoted or published for any period, then during
that period the term "Bank One Prime Rate" means the highest prime rate
published in the most recent edition of The Wall Street Journal in its regular
column entitled "Money Rates."

"Borrower" has the meaning set forth in the first paragraph of this Agreement.

"Bridge Mortgage Loan" has the meaning set forth in Exhibit H.

"Business Day" means any day other than Saturday, Sunday or any other day on
which national banking associations are closed for business.

"Buydown" has the meaning set forth in Section 3.4.

"Calendar Quarter" means the 3 month period beginning on each January 1, April
1, July 1 or October 1.

"Cash Collateral Account" means a demand deposit account maintained at the
Funding Bank in Lender's name and designated for receipt of the proceeds of the
sale or other disposition of Collateral.

"Closing Date" has the meaning set forth in the Recitals to this Agreement.

"Collateral" has the meaning set forth in Section 4.1.

"Collateral Documents" means, with respect to each Pledged Asset, the documents
required to be delivered to Lender pursuant to the applicable Exhibit B for the
type of Pledged Asset.

"Collateral Value" means (a) with respect to any Eligible Investment as of the
date of determination, the lesser of (i) the amount of any Structured Facility
Advance made against such Eligible Investment under Section 2.1 hereof or (ii)
the Fair Market Value of such Eligible Investment, and (b) with respect to cash,
the amount of such cash.

"Commercial Mortgage Loan" means a Mortgage Loan, other than a Bridge Mortgage
Loan, secured by a Mortgage on Commercial Property.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 2

<PAGE>

"Commercial Property" means improved commercial real property that is, or will
following rehabilitation be, an income-producing property, but is not a
Multifamily Property or a Health Care Facility.

"Debt" means (a) all indebtedness or other obligations of a Person that, in
accordance with GAAP, would be included in determining total liabilities as
shown on the liabilities side of a balance sheet of the Person on the date of
determination, plus (b) without duplication, all indebtedness or other
obligations of the Person for borrowed money or for the deferred purchase price
of property or services. For purposes of calculating a Person's Debt,
Subordinated Debt not due within 1 year of that date and all deferred taxes
arising from capitalized excess servicing fees and capitalized servicing rights
may be excluded from a Person's indebtedness.

"Default" means the occurrence of any event or existence of any condition that,
but for the giving of Notice or the lapse of time, would constitute an Event of
Default.

"Default Rate" means, for any Structured Facility Advance, the Interest Rate
applicable to that Structured Advance plus 4% per annum. If no Interest Rate is
applicable to a Structured Facility Advance, "Default Rate" means, for that
Structured Facility Advance, the highest Interest Rate then applicable to any
outstanding Structured Facility Advance plus 4% per annum.

"Depository Benefit" means the compensation received by Lender, directly or
indirectly, as a result of Borrower's maintenance of Eligible Balances with a
Designated Bank.

"Designated Bank" means any bank designated by Lender as a Designated Bank, but
only for as long as Lender has an agreement under which Lender receives
Depository Benefits from that bank.

"Designated Bank Charges" means any fees, interest or other charges that would
otherwise be payable to a Designated Bank in connection with Eligible Balances
maintained at the Designated Bank, including deposit insurance premiums, service
charges and any other charges that may be imposed by governmental authorities
from time to time.

"Earnings Allowance" has the meaning set forth in Section 3.1(b).

"Earnings Credit" has the meaning set forth in Section 3.1(b).

"Eligible Balances" means all funds of or maintained by Borrower and its
Subsidiaries and Affiliates in demand deposit or time deposit accounts at a
Designated Bank, minus balances to support float, reserve requirements and any
other reductions that may be imposed by governmental authorities from time to
time.

"Eligible Investment" means an Eligible Mortgage Investment or Multifamily
Property acquired in a Property Acquisition that satisfies the conditions and
requirements set forth in Exhibit H.

"Eligible Mortgage Investment" means a Mortgage Loan or Mezzanine Investment
which, unless otherwise agreed by the Lender in its sole and absolute
discretion, satisfies each of the following conditions:

         (a)      if it is a Mortgage Loan, as to which:

                  (1)      the Mortgage Note is payable or endorsed to the order
                           of Borrower;

                  (2)      each of the Mortgage Note and Mortgage is a legal,
                           valid and binding obligation of the Mortgagor;

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 3

<PAGE>

                  (3)      the Mortgage Note is an "instrument" within the
                           meaning of Article 9 of the Uniform Commercial Code
                           of all applicable jurisdictions; and

                  (4)      the Mortgage Note is denominated and payable only in
                           United States dollars;

         (b)      if it is a Mezzanine Investment other than a Mortgage Loan, as
                  to which:

                  (1)      it is freely assignable;

                  (2)      it is not subject to registration under any federal
                           or applicable state securities law;

                  (3)      Lender may obtain and perfect a security interest
                           therein in accordance with the Uniform Commercial
                           Code of all applicable jurisdictions;

                  (4)      it is either an obligation or a Preferred Equity
                           Interest denominated and payable only in United
                           States dollars; and

                  (5)      Lender may, without further consent of Borrower, any
                           Subsidiary or any other Person, exercise its remedies
                           under Section 10 of this Agreement and the Uniform
                           Commercial Code with respect thereto;

         (c)      Borrower or (in the case of a Preferred Equity Interest) a
                  Special Purpose Entity owns such Mortgage Loan or Mezzanine
                  Investment free and clear of any Lien (other than the Lien
                  created hereunder);

         (d)      neither such Mortgage Loan or Mezzanine Investment nor the
                  related Collateral Documents contravene in any material
                  respect any law, rule or regulation applicable thereto
                  (including, without limitation, all laws, rules and
                  regulations relating to usury) if any such contravention would
                  impair the collectibility of such Mortgage Loan or Mezzanine
                  Investment, and no party to the related Collateral Documents
                  is in violation of any such law, rule or regulation (or
                  procedures prescribed thereby) in any material respect if such
                  violation would impair the collectibility of such Mortgage
                  Loan or Mezzanine Investment or the performance by Borrower,
                  any Subsidiary, or any obligor of its obligations with respect
                  thereto;

         (e)      the Mortgage Loan or Mezzanine Investment is not subject to
                  any rights of setoff, counterclaim or defense in favor of the
                  Mortgagor or any other obligor thereon;

         (f)      such Mortgage Loan or Mezzanine Investment is not a Fraudulent
                  Loan and complies with all representations and warranties set
                  forth herein with respect thereto;

         (g)      such Mortgage Loan or Mezzanine Investment is a loan or
                  Preferred Equity Interest as to which Borrower has conducted
                  its customary due diligence and review, including, without
                  limitation, review of the financial condition of the Mortgagor
                  and inspection of the improved real property subject to the
                  Mortgage or otherwise backing such Mezzanine Investment,
                  directly or indirectly; and

         (h)      such Mortgage Loan or Mezzanine Investment has been
                  underwritten in accordance with the Underwriting Guidelines.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 4

<PAGE>

"Equity Interests" means all shares, interests, participations or other
equivalents, however, designated, of or in a Person (other than a natural
person), whether or not voting, including common stock, membership interests,
warrants, preferred stock, convertible debentures and all agreements,
instruments and documents convertible, in whole or in part, into any one or more
of the foregoing.

"Event of Default" means any of the conditions or events set forth in Section
10.1.

"Exhibit A" means Exhibit A-PA, Exhibit A-MF/MEZ, Exhibit A-MF/APP or Exhibit
A-MF, as applicable to the type of Eligible Investment against which a
Structured Facility Advance is to be made.

"Exhibit B" means Exhibit B-MF/NA, Exhibit B-MF/MEZ, Exhibit B-MF/BR, Exhibit
B-MF/PEI or Exhibit B-MF/PA, as applicable to the type of Eligible Investment
against which a Structured Facility Advance is to be made.

"Existing ACM Agreement" means, collectively, (i) the First Amended And Restated
Warehousing Credit, Term Loan And Security Agreement (Structured Facility And
Servicing Secured Facility) dated as of April 1, 2003, between ACM and Lender,
and (ii) the Third Amended and Restated Warehousing Credit and Security
Agreement (Commercial Mortgage Loans and Multifamily Mortgage Loans) (Syndicated
Agreement) dated as of April 1, 2003, between ACM, the lenders named therein,
and Lender, as credit agent.

"Exit Fee" has the meaning in Section 3.5(b).

"Fair Market Value" means, at any time for an Eligible Mortgage Investment, the
market price for such Eligible Mortgage Investment, determined by Lender based
on market data for similar Mortgage Loans or Mezzanine Investments and such
other criteria as Lender deems appropriate in its sole discretion.

"Fannie Mae" means Fannie Mae, a corporation created under the laws of the
United States, and any successor corporation or other entity.

"FHA" means the Federal Housing Administration and any successor agency or other
entity.

"FIRREA" means the Financial Institutions Reform, Recovery and Enforcement Act
of 1989 and all rules and regulations promulgated under that statute, as
amended, and any successor statute, rules, and regulations.

"First Mortgage" means a Mortgage that constitutes a first Lien on the real
property and improvements described in or covered by that Mortgage.

"First Mortgage Loan" means a Mortgage Loan secured by a First Mortgage.

"Fraudulent Loan" means any Mortgage Loan (a) originated based on any material
untrue, incomplete or inaccurate information, whether or not Borrower had
knowledge of such misrepresentation or inaccurate information, or (b) that, for
any reason, including, without limitation, any fraudulent activity on the part
of the mortgagor or Borrower, does not constitute the legal, valid and binding
obligation of the mortgagor or other obligor with respect to such Mortgage Loan,
enforceable against such mortgagor or other obligor in accordance with its
terms.

"Freddie Mac" means Freddie Mac, a corporation created under the laws of the
United States, and any successor corporation or other entity.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 5

<PAGE>

"Funding Bank" means Bank One or any other bank designated by Lender as a
Funding Bank.

"Funding Bank Agreement" means a letter agreement on the form prescribed by
Lender between the Funding Bank and Borrower authorizing Lender's access to the
Operating Account.

"GAAP" means generally accepted accounting principles set forth in opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and in statements and pronouncements of the
Financial Accounting Standards Board, or in opinions, statements or
pronouncements of any other entity approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the date
of determination.

"General Partner" means Arbor Realty GPOP, Inc., a Delaware corporation, and a
wholly-owned Subsidiary of Guarantor.

"Ginnie Mae" means the Government National Mortgage Association, an agency of
the United States government, and any successor agency or other entity.

"Guarantor" means, individually and collectively, Arbor Realty Trust, Inc., a
Maryland corporation, and any other Person that after the date of this Agreement
guarantees all or any portion of Borrower's Obligations.

"Guaranty" means a guaranty of all or any portion of Borrower's Obligations. If
more than one Guaranty is executed and delivered to Lender, the term "Guaranty"
means each of the Guaranties and all of them.

"Health Care Facility" means a retirement service center, a board and care
facility, an intermediate care facility, a nursing home or a hospital.

"Hedging Arrangements" means, with respect to any Person, any agreements or
other arrangements (including interest rate swap agreements, interest rate cap
agreements and forward sale agreements) entered into to protect that Person
against changes in interest rates or the market value of assets.

"HUD" means the Department of Housing and Urban Development, and any successor
agency or other entity.

"Indemnified Liabilities" has the meaning set forth in Section 11.2.

"Indemnitees" has the meaning set forth in Section 11.2.

"Index Rate" means, for any Structured Facility Advance other than a Structured
Facility Advance for which a fixed floor interest rate is specified in Exhibit
H, the Interest Rate specified for that Structured Facility Advance in Exhibit
H. For Structured Facility Advances for which the fixed floor interest rate is
specified in Exhibit H, Index Rate means LIBOR plus the applicable margin set
forth in Exhibit H or Section 3.1(b), as applicable.

"Initial Eligible Investments" means the Eligible Investments acquired from ACM
on the Closing Date, as described on Schedule 1 attached to this Agreement.

"Interest Rate" means the floating rate of interest specified in Exhibit H.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 6

<PAGE>

"Interim Statement Date" means the date of the most recent unaudited financial
statements of Borrower (and, if applicable, Borrower's Subsidiaries, on a
consolidated basis) delivered to Lender under this Agreement.

"Internal Revenue Code" means the Internal Revenue Code of 1986, Title 26 of the
United States Code, and all rules, regulations and interpretations issued under
those statutory provisions, as amended, and any subsequent or successor federal
income tax law or laws, rules, regulations and interpretations.

"Investor" means Fannie Mae, Freddie Mac or a financially responsible private
institution that Lender deems acceptable, in its sole discretion, to issue
Purchase Commitments with respect to a particular category of Eligible
Investments.

"Lender" has the meaning set forth in the first paragraph of this Agreement.

"Leverage Ratio" means the ratio of a Person's (and, if applicable, the Person's
Subsidiaries, on a consolidated basis) Debt to Modified Net Worth. For purposes
of calculating a Person's Leverage Ratio, Debt arising under Hedging
Arrangements, to the extent of assets arising under those Hedging Arrangements,
may be excluded from a Person's Debt.

"LIBOR" means, for each week, the rate of interest per annum that is equal to
the arithmetic mean of the U.S. Dollar London Interbank Offered Rates for 1
month periods of certain U.S. banks as of 11:00 a.m. (London time) on the first
Business Day of each month on which the London Interbank market is open, as
published by Bloomberg L.P. If those interest rates are not offered or published
for any period, then during that period LIBOR means the London Interbank Offered
Rate for 1 month periods as published in The Wall Street Journal in its regular
column entitled "Money Rates" on the first Business Day of each month on which
the London Interbank market is open.

"Lien" means any lien, mortgage, deed of trust, pledge, security interest,
charge or encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature of such an agreement and any
agreement to give any security interest).

"Liquid Assets" means the following assets owned by a Person as of any date of
determination: (a) unrestricted and unencumbered cash, funds on deposit in any
bank located in the United States, investment grade commercial paper, money
market funds, or marketable securities; (b) the excess, if any, of Mortgage
Loans and Mortgage-backed Securities held for sale (valued in accordance with
GAAP) over the outstanding aggregate principal amount of any Debt against which
those Mortgage Loans or Mortgage-backed Securities are pledged as collateral;
and (c) the amount available to be borrowed under committed working capital or
other similar facilities with respect to which all conditions to borrowing have
been satisfied.

"Loan Documents" means this Agreement, the Structured Facility Note, the
Guaranty, any agreement of Borrower relating to Subordinated Debt, any Security
Agreement, if applicable, and each other document, instrument or agreement
executed by Borrower in connection with any of those documents, instruments and
agreements, as originally executed or as any of the same may be amended,
restated, renewed or replaced.

"Management Agreement" means the Management and Advisory Agreement dated July 1,
2003 among Guarantor, Borrower and ACM pursuant to which ACM will provide
certain management and advisory services to Borrower and Guarantor.

"Mezzanine Investment" has the meaning set forth in Exhibit H.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 7

<PAGE>

"Mezzanine Investment Amount" means, as of the date of determination, (a) in the
case of a loan, the then outstanding unpaid principal amount of a Mezzanine Note
(whether or not an additional amount is available to be drawn thereunder), and
(b) in the case of a Preferred Equity Interest, the amount of the liquidation
priority thereof (without giving effect to any accrual of preferred return
amounts thereon) or, if less, the minimum amount payable thereon before capital
may be returned on any other equity interest in the Borrower.

"Mezzanine Note" means a promissory note evidencing a Mezzanine Investment which
is a loan (whether or not such promissory note is a Mortgage Note).

"Miscellaneous Fees and Charges" means the miscellaneous fees set forth on
Lender's fee schedule attached as Exhibit I and all miscellaneous disbursements,
charges and expenses incurred by or on behalf of Lender for the handling and
administration of Structured Facility Advances and Collateral, including costs
for Uniform Commercial Code, tax lien and judgment searches conducted by Lender,
filing fees, charges for wire transfers and check processing charges, charges
for security delivery fees, charges for overnight delivery of Collateral to
Investors, recording fees, Funding Bank service fees and overdraft charges and
Designated Bank Charges. Upon not less than 3 Business Days' prior Notice to
Borrower, Lender may modify Exhibit I and the fees set forth in it to conform to
current Lender practices and, as so modified, the revised Exhibit I will become
part of this Agreement.

"Modified Net Worth" means the excess of a Person's (and, if applicable, the
Person's Subsidiaries, on a consolidated basis) total assets over total
liabilities as of the date of determination, each determined in accordance with
GAAP applied in a manner consistent with the financial statements referred to in
Section 6.6, plus that portion of Subordinated Debt not due within 1 year of
that date. For purposes of calculating a Person's Modified Net Worth, the
following shall be excluded from total assets: (a) advances or loans to
managers, members, employees or Affiliates (other than joint ventures), (b)
investments in Affiliates (other than joint ventures), (c) 25% of the amount of
Borrower's loans (including Mortgage Loans) and advances to and investments in
joint ventures, (d) assets pledged to secure any liabilities not included in the
Debt of the Person, and (e) intangible assets.

"Mortgage" means a mortgage or deed of trust on real property that is improved
and substantially completed.

"Mortgage-backed Securities" means securities that are secured or otherwise
backed by Mortgage Loans.

"Mortgage Loan" means any loan evidenced by a Mortgage Note and secured by a
Mortgage and, if applicable, a Security Agreement.

"Mortgage Note" means a promissory note secured by one or more Mortgages and, if
applicable, one or more Security Agreements.

"Mortgage Note Amount" means, as of any date of determination, the then
outstanding and unpaid principal amount of a Mortgage Note (whether or not an
additional amount is available to be drawn under that Mortgage Note).

"Mortgage Pool" means a pool of one or more Mortgage Loans on the basis of which
a Mortgage-backed Security is to be issued.

"Multiemployer Plan" means a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA, to which either Borrower or any ERISA Affiliate of Borrower
has any obligation with respect to its employees.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 8

<PAGE>

"Multifamily Mortgage Loan" means a Mortgage Loan secured by a Multifamily
Property.

"Multifamily Property" means real property that contains or that will contain
more than 4 dwelling units.

"Net Profit" means, with respect to any Mortgage Loan or Mezzanine Investment
pledged hereunder to secure a Structured Facility Advance, an amount calculated
as follows:

                     NP=[II+OP+(or-)EP+MF] - [IE+CF+AF+EF],

where "NP" means Net Profit, "II" means the aggregate amount of interest,
distributions or other income payments (excluding principal, if any) paid to or
otherwise received by Borrower pursuant to such Mortgage Loan or Mezzanine
Investment, "OP" means the points paid to Borrower (or to Borrower's
correspondent and passed through to Borrower) upon the origination or
acquisition of such Mortgage Loan or Mezzanine Investment, "EP" means the amount
of points or fees paid to Borrower upon the repayment of such Mortgage Loan or
Mezzanine Investment or the gain (or loss) realized by Borrower upon the sale or
other disposition of such Mortgage Loan or Mezzanine Investment, including the
amount of any gain or loss realized by Borrower in connection with the sale,
other disposition, redemption or other retirement of any equity interest
acquired by Borrower as additional compensation in connection with such Mortgage
Loan or Mezzanine Investment, "MF" means the amount of miscellaneous fees (but
not expense reimbursements or application fees) received by Borrower in
connection with such Mortgage Loan or Mezzanine Investment, "IE" means the
amount of interest paid, or accrued and not yet paid, on the related Structured
Facility Advance, "CF" means the Structured Facility Commitment Fee paid to the
Lender at the time of such Structured Facility Advance, "AF" means the lesser of
OP or 1% of the Mortgage Note Amount or Mezzanine Investment Amount of such
Mortgage Loan or Mezzanine Investment at the time of its origination or
acquisition by Borrower, and "EF" means the Exit Fee, if any, payable to the
Lender, and any extension fee paid to the Lender, in connection with the
permanent Multifamily Mortgage Loan or Commercial Mortgage Loan that refinances
such Mortgage Loan or Mezzanine Investment.

"Note Acquisition" means the acquisition by Borrower of one or more Multifamily
Mortgage Loans from a Person who is not an Affiliate, which may occur more than
30 days after the closing of such Multifamily Mortgage Loan(s).

"Note Acquisition Loans" has the meaning set forth in Exhibit H.

"Notices" has the meaning set forth in Section 11.1.

"Obligations" means all indebtedness, obligations and liabilities of Borrower to
Lender (whether now existing or arising after the date of this Agreement,
voluntary or involuntary, joint or several, direct or indirect, absolute or
contingent, liquidated or unliquidated, or decreased or extinguished and later
increased and however created or incurred), including Borrower's obligations and
liabilities to Lender under the Loan Documents and disbursements made by Lender
for Borrower's account.

"Operating Account" means a demand deposit account maintained at the Funding
Bank in Borrower's name and designated for funding that portion of each Eligible
Investment not funded by a Structured Facility Advance made against that
Eligible Investment and for returning any excess payment from an Investor for a
Pledged Investment or Pledged Security.

"Overdraft Advance" has the meaning set forth in Section 3.7.

"Parent SPE" means a Special Purpose Entity that owns all of the outstanding
equity interests in a Property SPE and no other assets.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 9

<PAGE>

"Person" means and includes natural persons, corporations, limited liability
companies, limited liability partnerships, limited partnerships, general
partnerships, joint stock companies, joint ventures, associations, companies,
trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and governments and agencies and
political subdivisions of those governments.

"Plan" means each employee benefit plan (whether in existence on the date of
this Agreement or established after that date), as that term is defined in
Section 3 of ERISA, maintained for the benefit of directors, officers or
employees of Borrower or any ERISA Affiliate.

"Pledged Assets" means, collectively, Pledged Investments, and Pledged
Securities, Multifamily Properties acquired in a Property Acquisition financed
by a Structured Facility Advance, and Preferred Equity Interests pledged to
Lender by an ARLP Member Entity.

"Pledged Hedging Accounts" has the meaning set forth in Section 4.1 (h).

"Pledged Hedging Arrangements" has the meaning set forth in Section 4.1 (h).

"Pledged Investments" has the meaning set forth in Section 4.1 (b).

"Pledged Securities" has the meaning set forth in Section 4.1 (c).

"Pledged Shares" has the meaning set forth in Section 4.1(f) hereof.

"Portfolio Performance Ratio" means, at any date of determination for all assets
owned by Borrower during any month, the ratio of (a) the aggregate amount of all
interest income and preferred equity return actually received by Borrower in
such month, to (b) the aggregate amount of all interest expense and fees (in the
case of financing agreements) and equivalent monthly amounts (in the case of
repurchase agreements) payable by Borrower in such month pursuant to any of
Borrower's financing or repurchase agreements.

"Preferred Equity Interests" means shares of the capital stock of a corporation,
membership interests in a limited liability company or limited partnership
interests in a limited partnership that (a) have a specific liquidation
preference amount, denominated in United States dollars, with priority over any
other equity interests in the issuer thereof, (b) are entitled to a preferred
return of capital in a specific amount, denominated in United States dollars,
before any capital may be returned on any other equity interests in the issuer
thereof, and (c) are entitled, in the event of any non-payment of preferred
dividends or other distributions in accordance with the terms thereof, to
exercise voting control over such corporation, limited liability company or
limited partnership.

"Prohibited Transaction" has the meanings set forth for such term in Section
4975 of the Internal Revenue Code and Section 406 of ERISA.

"Property" means a Multifamily Property or Health Care Facility securing a
Mortgage Loan.

"Property Acquisition" has the meaning set forth in Exhibit H.

"Property Mortgage" means a First Mortgage covering Multifamily Property
acquired by Borrower in a Property Acquisition which has been executed and
delivered by Borrower, as trustor or mortgagor, for the benefit of Lender, in
appropriate recordable form in the relevant jurisdiction acceptable to Lender.

"Property SPE" means a Special Purpose Entity that owns a Multifamily Property.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 10

<PAGE>

"Property Subsidiary" means a corporation, limited liability company or other
business entity that is a wholly-owned Subsidiary of Borrower and the
organizational documents of which provide that such Person (i) was formed or
organized solely for the purpose of owning Multifamily Properties acquired in
Property Acquisitions, (ii) will not engage in any business other than the
ownership of such Multifamily Properties, (iii) will not own any assets other
than those related to such Multifamily Properties, (iv) will not incur any Debt,
except liabilities incidental to its legal status, (v) will maintain its own
books, records and accounts separate and apart from those of any other Person,
and (vi) will hold itself out as being a legal entity separate and distinct from
any other Person.

"Purchase Commitment" means a written commitment, in form and substance
satisfactory to Lender, issued in favor of Borrower by an Investor under which
that Investor commits to purchase Eligible Mortgage Investments or
Mortgage-backed Securities.

"Refinancing Loan" means a permanent Commercial Mortgage Loan, Multifamily
Mortgage Loan or other financing originated by Borrower to refinance one or more
Pledged Investments.

"Release Amount" has the meaning set forth in Section 4.3(f).

"Remainder" has the meaning set forth in Section 3.1(b).

"Restriction List" and "Restriction Lists" means each and every list of Persons
to whom the Government of the United States prohibits or otherwise restricts the
provision of financial services. For the purposes of this Agreement, Restriction
Lists include the list of Specifically Designated Nationals and Blocked Persons
established pursuant to Executive Order 13224 (September 23, 2001) and
maintained by the Office of Foreign Assets Control, U.S. Department of the
Treasury, current as of the day the Restriction List is used for purposes of
comparison in accordance with the requirements of this Agreement.

"Security Agreement" means a security agreement or other agreement that creates
a Lien on personal property, including furniture, fixtures and equipment, to
secure repayment of a Mortgage Loan.

"Servicer" means ACM in its capacity as servicer for Borrower under the
Servicing Agreement.

"Servicing Agreement" means the Servicing Agreement dated July 1, 2003 among
Guarantor, Borrower and ACM pursuant to which ACM will act as servicer for
Borrower and Guarantor.

"Servicing Contract" means, with respect to any Person, the arrangement, whether
or not in writing, under which that Person has the right to service Mortgage
Loans, including the right to service Mortgage Loans originated by Borrower.

"Servicing Portfolio" means, as to any Person, the unpaid principal balance of
Mortgage Loans serviced by that Person under Servicing Contracts, minus the
principal balance of all Mortgage Loans that are serviced by that Person for
others under subservicing arrangements.

"Special Purpose Entity" means a corporation, limited liability company or
limited partnership the organizational documents of which provide that such
Person (i) was formed or organized solely for the purpose of owning or operating
the Property securing a Multifamily Mortgage Loan or Commercial Mortgage Loan,
or the equity interests in another Special Purpose Entity, (ii) will not engage
in any business other than the ownership, operating and financing of such
Property or equity interests, (iii) will not own any assets other than those
related to such Property or equity interests and their financing, (iv) will not
incur any liabilities other than a Mezzanine Investment, a First Mortgage Loan
(in the case of a Special Purpose Entity that owns a Property) and other
liabilities not prohibited thereunder, (v) will maintain its own books, records
and accounts separate and apart from those of

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 11

<PAGE>

any other Person, and (vi) will hold itself out as being a legal entity separate
and distinct from any other Person.

"Statement Date" means the Audited Statement Date or the Interim Statement Date,
as applicable.

"Structured Facility Advance" means a disbursement by Lender under Section 1.1.

"Structured Facility Advance Request" means a request for a Structured Facility
Advance in the form attached hereto as Exhibit A-MF, as modified from time to
time.

"Structured Facility Collateral Value" means, as of any date of determination,
with respect to any Eligible Investment, the lesser of (a) the amount of any
Structured Facility Advance made, or that could be made, against such Eligible
Investment under Exhibit H or (b) an amount equal to the Advance Rate for the
applicable type of Eligible Investment multiplied by the Fair Market Value of
such Eligible Investment.

"Structured Facility Commitment" means the obligation of Lender to make
Structured Facility Advances to Borrower under Section 1.1.

"Structured Facility Commitment Amount" means $250,000,000.

"Structured Facility Commitment Fee" has the meaning set forth in Section
3.5(a).

"Structured Facility Commitment Termination Date" has the meaning set forth in
Section 1.2.

"Structured Facility Maturity Date" means the date that is nine months after the
Structured Facility Commitment Termination Date.

"Structured Facility Note" has the meaning set forth in Section 1.3.

"Sublimit" means the aggregate amount of Structured Facility Advances (expressed
as a dollar amount or as a percentage of the Structured Facility Commitment
Amount) that is permitted to be outstanding at any one time against a specific
type of Eligible Investment.

"Subordinated Debt" means (a) all indebtedness of Borrower for borrowed money
that is effectively subordinated in right of payment to all present and future
Obligations either (1) under a Subordination of Debt Agreement on the form
prescribed by Lender or (2) otherwise on terms acceptable to Lender, and (b)
solely for purposes of Section 8.4, all indebtedness of Borrower that is
required to be subordinated by Sections 5.1 (b) and 7.9.

"Subsidiary" means any corporation, partnership, association or other business
entity in which more than 50% of the shares of stock or other ownership
interests having voting power for the election of directors, managers, trustees
or other Persons performing similar functions is at the time owned or controlled
by any Person either directly or indirectly through one or more Subsidiaries of
that Person.

"Third Party Originated Loan" means a Mortgage Loan originated and funded by a
third party (other than with funds provided by Borrower at closing to purchase
the Mortgage Loan) and subsequently purchased by Borrower.

"Trust Receipt" means a trust receipt in a form approved by and under which
Lender may deliver any document relating to the Collateral to Borrower for
correction or completion.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 12

<PAGE>

"Underwriting Documents" means, with respect to any Bridge Mortgage Loan, Note
Acquisition Loan, Mezzanine Investment or Property Acquisition submitted to the
Lender pursuant to Section 2.1 hereof, the reports, certificates, documents and
other information included in the underwriting package and used by Borrower in
evaluating and approving such Eligible Investment or Property Acquisition,
including, but not limited to, items listed in Exhibit B.

"Underwriting Guidelines" means Borrower's policies and procedures for
underwriting Eligible Mortgage Investments secured or otherwise backed by
Multifamily Properties, Health Care Facilities or Commercial Properties, as in
effect on the date of this Agreement, a copy of which has been provided to and
approved by Lender, as the same may be modified from time to time in accordance
with this Agreement.

"Warehouse Period" means, for any Eligible Investment, the maximum number of
days a Structured Facility Advance against that type of Eligible Investment may
remain outstanding as set forth in Exhibit H.

"Wire Disbursement Account" means a demand deposit account maintained at the
Funding Bank in Lender's name for clearing wire transfers requested by Borrower
to fund Structured Facility Advances.

13.2.    OTHER DEFINITIONAL PROVISIONS; TERMS OF CONSTRUCTION

13.2 (a) Accounting terms not otherwise defined in this Agreement have the
         meanings given to those terms under GAAP.

13.2 (b) Defined terms may be used in the singular or the plural, as the context
         requires.

13.2 (c) All references to time of day mean the then applicable time in Chicago,
         Illinois, unless otherwise expressly provided.

13.2 (d) References to Sections, Exhibits, Schedules and like references are to
         Sections, Exhibits, Schedules and the like of this Agreement unless
         otherwise expressly provided.

13.2 (e) The words "include," "includes" and "including" are deemed to be
         followed by the phrase "without limitation."

13.2 (f) Unless the context in which it is used otherwise clearly requires, the
         word "or" has the inclusive meaning represented by the phrase "and/or."

13.2 (g) All incorporations by reference of provisions from other agreements are
         incorporated as if such provisions were fully set forth into this
         Agreement, and include all necessary definitions and related provisions
         from those other agreements. All provisions from other agreements
         incorporated into this Agreement by reference survive any termination
         of those other agreements until the Obligations of Borrower under this
         Agreement and the Structured Facility Note are irrevocably paid in full
         and the Structured Facility Commitment is terminated.

13.2 (h) All references to the Uniform Commercial Code shall be deemed to be
         references to the Uniform Commercial Code in effect on the date of this
         Agreement in the applicable jurisdiction.

13.2 (i) Unless the context in which it is used otherwise clearly requires, all
         references to days, weeks and months mean calendar days, weeks and
         months.

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 13

<PAGE>

                                END OF ARTICLE 12

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 14

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the date first above written.

                                         Arbor Realty Limited Partnership,
                                         a Delaware limited partnership

                                         By:  Arbor Realty GPOP, Inc.,
                                              a Delaware corporation
                                         Its: General Partner

                                              By:  /s/ Frederick C. Herbst
                                                   -----------------------------

                                              Its: Chief Financial Officer

                                         RESIDENTIAL FUNDING CORPORATION,
                                         a Delaware Corporation

                                         By:/s/ Chuck Schweitzer
                                            ------------------------------------
                                         Its: Director

Dated: 7/1/2003
Amended:  7/24/2003

                                     Page 15<PAGE>

                                                                   EXHIBIT 10.13

                                                                  EXECUTION COPY

================================================================================

                                U.S. $150,000,000

                     LOAN PURCHASE AND REPURCHASE AGREEMENT

                                  by and among

                            ARBOR REALTY FUNDING LLC
                                  as the Seller

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                                as the Purchaser

                                       and

                            ARBOR REALTY TRUST, INC.,
                                as the Guarantor

                          Dated as of December 23, 2003

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                     PAGE
<S>                                                                                                                  <C>
ARTICLE I  DEFINITIONS...........................................................................................      1
         Section 1.1       Certain Defined Terms.................................................................      1
         Section 1.2       Other Terms...........................................................................     26
         Section 1.3       Computation of Time Periods...........................................................     26
         Section 1.4       Interpretation........................................................................     26

ARTICLE II PURCHASE OF ELIGIBLE ASSETS...........................................................................     27
         Section 2.1       Purchase and Sale.....................................................................     27
         Section 2.2       Transaction Mechanics; Related Matters................................................     27
         Section 2.3       Reduction of Maximum Amount; Optional Repurchases.....................................     30
         Section 2.4       Extension of Facility Maturity Date...................................................     30
         Section 2.5       Payment of Price Differential.........................................................     31
         Section 2.6       Request for Additional Transaction for Excess Margin..................................     32
         Section 2.7       Margin Account Maintenance............................................................     33
         Section 2.8       Income Payments.......................................................................     34
         Section 2.9       Payment, Transfer and Custody.........................................................     35
         Section 2.10      Disputes Regarding Market Value Determination.........................................     36
         Section 2.11      Hypothecation or Pledge of Purchased Assets...........................................     37
         Section 2.12      Fees..................................................................................     37
         Section 2.13      Increased Costs; Capital Adequacy; Illegality.........................................     37
         Section 2.14      Taxes.................................................................................     39

ARTICLE III CONDITIONS TO TRANSACTIONS...........................................................................     40
         Section 3.1       Conditions to Closing and Initial Purchase............................................     40
         Section 3.2       Conditions Precedent to all Transactions..............................................     41
         Section 3.3       Additional Opinions...................................................................     45

ARTICLE IV REPRESENTATIONS AND WARRANTIES........................................................................     46
         Section 4.1       Representations and Warranties of the Seller..........................................     46

ARTICLE V COVENANTS..............................................................................................     56
         Section 5.1       Covenants of the Seller...............................................................     56

ARTICLE VI ADMINISTRATION AND SERVICING..........................................................................     70
         Section 6.1       Servicing.............................................................................     70
         Section 6.2       Seller as Servicer....................................................................     70
         Section 6.3       Third Party Servicer..................................................................     70
         Section 6.4       Duties of the Seller..................................................................     71
         Section 6.5       Authorization of the Seller...........................................................     72
         Section 6.6       Collection of Payments................................................................     73
         Section 6.7       Realization Upon Defaulted Purchased Items............................................     73
         Section 6.8       Maintenance of Insurance Policies.....................................................     74
         Section 6.9       Termination Event.....................................................................     74
         Section 6.10      Modification..........................................................................     74
         Section 6.11      Inspection............................................................................     75
         Section 6.12      Servicing Compensation................................................................     75
         Section 6.13      Payment of Certain Expenses by Servicer...............................................     75
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         Section 6.14      Pooling and Servicing Agreements......................................................     75
         Section 6.15      Servicer Default......................................................................     76

ARTICLE VII [RESERVED]...........................................................................................     76

ARTICLE VIII SECURITY INTEREST...................................................................................     76
         Section 8.1       Security Interest.....................................................................     76
         Section 8.2       Release of Lien on Purchased Assets...................................................     78
         Section 8.3       Further Assurances....................................................................     78
         Section 8.4       Remedies..............................................................................     78
         Section 8.5       Waiver of Certain Laws................................................................     78

ARTICLE IX POWER OF ATTORNEY.....................................................................................     79
         Section 9.1       Purchaser's Appointment as Attorney-in-Fact...........................................     79

ARTICLE X TERMINATION EVENTS.....................................................................................     80
         Section 10.1      Termination Events....................................................................     80
         Section 10.2      Remedies..............................................................................     84
         Section 10.3      Determination of Termination Events...................................................     86

ARTICLE XI INDEMNIFICATION.......................................................................................     87
         Section 11.1      Indemnities by the Seller.............................................................     87

ARTICLE XII [RESERVED]...........................................................................................     88

ARTICLE XIII MISCELLANEOUS.......................................................................................     88
         Section 13.1      Amendments and Waivers................................................................     88
         Section 13.2      Notices, Etc..........................................................................     88
         Section 13.3      Set-offs..............................................................................     88
         Section 13.4      No Waiver; Remedies...................................................................     89
         Section 13.5      Binding Effect........................................................................     89
         Section 13.6      Term of this Agreement................................................................     89
         Section 13.7      Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue..................     89
         Section 13.8      Waiver of Jury Trial..................................................................     89
         Section 13.9      Costs, Expenses and Taxes.............................................................     90
         Section 13.10     Legal Matters.........................................................................     90
         Section 13.11     Recourse Against Certain Parties......................................................     91
         Section 13.12     Protection of Right, Title and Interest in the Purchased Assets; Further Action
                           Evidencing Transactions...............................................................     91
         Section 13.13     Confidentiality.......................................................................     92
         Section 13.14     Execution in Counterparts; Severability; Integration..................................     93
         Section 13.15     Seller's Waiver of Setoff.............................................................     94
         Section 13.16     Assignments and Participations; Hypothecation of Purchased Assets.....................     94
         Section 13.17     Heading and Exhibits..................................................................     95
         Section 13.18     Single Agreements.....................................................................     95
         Section 13.19     Disclosure Relating to Certain Federal Protections....................................     95
         Section 13.20     Intent................................................................................     95
         Section 13.21     Periodic Due Diligence Review.........................................................     96
         Section 13.22     Use of Employee Plan Assets...........................................................     97
</TABLE>

                                       ii

<PAGE>

                                    SCHEDULES
<TABLE>
<S>                                                                                                                  <C>
Schedule 1      Representations and Warranties Regarding Mortgage Assets.......................................      1
Schedule 2      Asset Pricing..................................................................................      1
Schedule 3      Accounts.......................................................................................      1
Schedule 4      Approved Servicers.............................................................................      1
Schedule 5      List of Existing Financing Facilities..........................................................      1
Schedule 6      Exceptions to Subsection 4.1(h)(h).............................................................      1
Schedule 7      UCC Filing Locations...........................................................................      1
Schedule 8      List of Subsidiaries...........................................................................      1
</TABLE>

                                  EXHIBITS

<TABLE>
<S>                                                                                                                  <C>
Exhibit I-1     Form of Closing Certificate of Seller..........................................................      1
Exhibit I-2     Form of Closing Certificate of Guarantor.......................................................      1
Exhibit I-3     Form of Closing Certificate of Pledgor.........................................................      1
Exhibit II-1    Form of Confirmation - Mezzanine Loan Transactions.............................................      1
Exhibit II-2    Form of Confirmation - Whole Loan and Junior Interest Transactions.............................      1
Exhibit III     Power of Attorney..............................................................................      1
Exhibit IV      Form of Transaction Request....................................................................      1
Exhibit V       Form of Account Agreement......................................................................      1
Exhibit VI-1    Form of Perfection Certificate of the Seller...................................................      1
Exhibit VI-2    Form of Perfection Certificate of the Pledgor..................................................      1
Exhibit VII-1   Form of Seller's Release Letter................................................................      1
Exhibit VII-2   Form of Warehouse Lender's Release Letter......................................................      1
Exhibit VIII    Form of Servicer Notice........................................................................      1
Exhibit IX      Form of Request for Additional Transactions for Excess Margin..................................      1
Exhibit X       Compliance Certificate.........................................................................      1
Exhibit XI      Form of Summary of Purchased Asset Data Summary................................................      1
Exhibit XII     Form of Margin Deficit Notice..................................................................      1
Exhibit XIII    Form of Assignment.............................................................................      1
</TABLE>

                                      iii

<PAGE>

                     LOAN PURCHASE AND REPURCHASE AGREEMENT

         THIS LOAN PURCHASE AND REPURCHASE AGREEMENT (such agreement as amended,
modified, waived, supplemented, extended, replaced or restated from time to
time, the "Agreement") is made as of this 23rd day of December, 2003, by and
among:

         (1) ARBOR REALTY FUNDING LLC, a Delaware limited liability company, as
the seller (together with its successors and permitted assigns in such capacity,
the "Seller");

         (2) WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association
(together with its successors and assigns, "Wachovia"), as the purchaser
(together with its successors and assigns in such capacity, the "Purchaser");
and

         (3) ARBOR REALTY TRUST, INC., a Maryland corporation (together with its
successors and assigns, "Arbor"), as the guarantor (together with its successors
and permitted assigns in such capacity, the "Guarantor").

                                 R E C I T A L S

         WHEREAS, the Seller desires to sell and the Purchaser desires to
purchase from time to time Eligible Assets under the terms and conditions stated
herein; and

         WHEREAS, the parties desire that the Seller repurchase the Purchased
Assets on or before the Facility Maturity Date under the terms and conditions
stated herein.

         NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises
and agreements contained herein, and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1 CERTAIN DEFINED TERMS.

         (a) Certain capitalized terms used throughout this Agreement are
defined above or in this Article I.

         (b) As used in this Agreement and the schedules, exhibits and other
attachments hereto, unless the context requires a different meaning, the
following terms shall have the following meanings:

"40 Act": Defined in Subsection 10.1(e).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

<PAGE>

"Accepted Servicing Practices": With respect to any Mortgage Asset, those
mortgage servicing practices of prudent mortgage lending institutions that
service Mortgage Assets of the same type, size and structure as such Mortgage
Asset in the jurisdiction where the related Mortgaged Property is located, but
in any event, in accordance with the terms of the Repurchase Documents and
without prejudice to the interests of the Purchaser.

"Account Agreement": A letter agreement among the Seller, the Purchaser and
Wachovia substantially in the form of Exhibit V attached hereto.

"Accrual Period": With respect to the first Payment Date, the period from and
including the applicable Purchase Date to but excluding such first Payment Date,
and, with respect to any subsequent Payment Date, the period from and including
the previous Payment Date to but excluding such subsequent Payment Date.

"Additional Amount": Defined in Section 2.14.

"Adjusted Eurodollar Rate": For any Eurodollar Period, a rate per annum equal to
a fraction, expressed as a percentage and rounded upwards (if necessary) to the
nearest 1/100 of 1%, (i) the numerator of which is equal to the Eurodollar Rate
for such Eurodollar Period and (ii) the denominator of which is equal to 100%
minus the Eurodollar Reserve Percentage for such Eurodollar Period.

"Advance Rate": With respect to a Mortgage Asset of a certain Class and the
applicable Type of Underlying Mortgaged Property, the "Advance Rate" set forth
in the applicable column on Schedule 2 attached hereto.

"Affiliate": With respect to a Person, means any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person, or is a director of such Person. For purposes of this definition,
"control" (including the terms "controlling," "controlled by" and "under common
control with") when used with respect to any specified Person means the
possession, direct or indirect, of the power to vote 20% or more of the voting
securities of such Person or to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities,
by contract or otherwise.

"Aggregate Unpaids": At any time, an amount equal to the sum of the aggregate
Purchase Price outstanding for all Transactions, the aggregate Price
Differential outstanding, Margin Deficits outstanding, Breakage Costs, Increased
Costs, Taxes, Additional Amounts, Late Payment Fees and all other amounts owed
by the Seller to the Purchaser or by the Seller or any other Person under this
Agreement, the Repurchase Documents and any fee letter (including, without
limitation, the Fee Letter and the Custodial Fee Letter) delivered in connection
with the transactions contemplated by this Agreement or the Repurchase Documents
(whether due or accrued).

"Agreement": Defined in the Preamble of this Agreement.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       2
<PAGE>

"ALTA": The American Land Title Association.

"Alternative Market Price Quote": The good faith determination of the price at
which a Mortgage Asset could readily be sold by a bona fide third-party that (a)
is not the Seller, the Guarantor, the Pledgor or any Affiliate of the Seller,
the Guarantor or the Pledgor, (b) regularly engages in the business of buying
and/or selling assets similar in type, size and structure as the Purchased
Assets and in the same jurisdiction as the related Underlying Mortgaged
Property, and (c) is familiar with the market for such Mortgage Assets.

"Anti-Money Laundering Laws": Defined in Subsection 4.1(nn).

"Applicable Law": For any Person or Property of such Person, all existing and
future applicable laws, rules, regulations (including temporary and final income
tax regulations), statutes, treaties, codes, ordinances, permits, certificates,
orders and licenses of and interpretations by any Governmental Authority
(including, without limitation, usury laws, the Federal Truth in Lending Act,
and Regulation Z and Regulation B of the Board of Governors of the Federal
Reserve System), and applicable judgments, decrees, injunctions, writs, awards
or orders of any court, arbitrator or other administrative, judicial or
quasi-judicial tribunal or agency of competent jurisdiction.

"Asset Schedule and Exception Report": Defined in the Custodial Agreement.

"Asset Tape": Defined in Subsection 5.1(ff).

"Asset Value": As of any date of determination for each Eligible Asset or
Purchased Asset, as applicable, with respect to a Mortgage Asset of a certain
Class and the applicable Type of Underlying Mortgaged Property, the lesser of
(a) the product of the Book Value of such Mortgage Asset times the Advance Rate
applicable thereto and (b) the product of the Market Value of such Mortgage
Asset times the LTV applicable thereto; provided, however, (i) the Asset Value
of any Mortgage Asset shall not include any portion of a Mortgage Asset that
exceeds the Sub-Limit applicable thereto at any time, unless waived in writing
by the Purchaser in its sole and absolute discretion, and (ii) the Asset Value
shall be deemed to be zero (0) for each Mortgage Asset (A) in respect of which
there is a breach of a representation and warranty set forth in Schedule 1
(assuming each representation and warranty is made as of the date the Asset
Value is determined), (B) in respect of which the complete Mortgage Asset File
has not been delivered to the Custodian within the time period required by the
Custodial Agreement, (C) which is a Table Funded Purchased Asset in respect of
which the Mortgage Asset Files have not been delivered to the Custodian within
three (3) Business Days following the Purchase Date, or (D) that has been
released from the possession of the Custodian under the Custodial Agreement to
the Seller for a period in excess of twenty (20) calendar days.

"Assignment": The transfer of all of the Seller's rights and interests under an
Eligible Asset pursuant to an assignment agreement among the Seller and the
Purchaser, which agreement shall be in the form of Exhibit XIII and is otherwise
satisfactory to the Purchaser in its discretion.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       3
<PAGE>

"Assignment of Leases": With respect to any Mortgage, an assignment of leases
thereunder, notice of transfer or equivalent instrument in recordable form,
sufficient under the laws of the jurisdiction wherein the Underlying Mortgaged
Property is located to reflect the assignment of leases to the Purchaser.

"Assignment of Mortgage": With respect to any Mortgage, an assignment of the
Mortgage, notice of transfer or equivalent instrument in recordable form,
sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect the assignment of the Mortgage to the Purchaser.

"Availability": At any time, an amount equal to the positive excess (if any) of
(a) the Maximum Amount minus (b) the aggregate Purchase Price outstanding for
all Transactions on such day; provided, however, on and after the occurrence of
the Facility Maturity Date (not including any extensions thereof) or a
Termination Event, the Availability shall be zero (0).

"Bailee": With respect to each Table Funded Purchased Asset, the related title
company or other settlement agent, in each case, approved by the Purchaser in
its sole discretion.

"Bailee Agreement": The Bailee Agreement among the Seller, the Purchaser and the
Bailee in the form of Annex 13 to the Custodial Agreement.

"Bailee's Trust Receipt": A Trust Receipt in the form of Attachment 2 to the
Bailee Agreement.

"Bankruptcy Code": The United States Bankruptcy Reform Act of 1978 (11 U.S.C.
Section 101, et seq.), as amended from time to time.

"Base Rate": On any date, a fluctuating rate per annum equal to the lower of (a)
the Prime Rate or (b) the Federal Funds Rate plus 0.5%.

"Benefit Plan": Any employee benefit plan as defined in Section 3(3) of ERISA in
respect of which the Seller or the Guarantor or any ERISA Affiliate of the
Seller or the Guarantor is, or at any time during the immediately preceding six
(6) years was, an "employer" as defined in Section 3(5) of ERISA.

"Book Value": With respect to any Mortgage Asset at any time, an amount, as
certified by the Seller, equal to the price that the Seller initially paid or
advanced for or in respect of such Mortgage Asset, as such Book Value may be
marked down by the Seller from time to time, including any loss/price
adjustments, less an amount equal to the sum of all principal paydowns paid and
realized losses recognized relating to such Mortgaged Asset.

"Borrower": Defined in the Custodial Agreement.

"Borrower Reserve Payments": Any payments made by a Borrower under the
applicable Mortgage Loan Documents which, pursuant to the terms of such Mortgage
Loan Documents, are required to be deposited into escrow or into a reserve to be
used for a specific purpose (e.g., tax and insurance escrows).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                        4
<PAGE>

"Breakage Costs": Defined in Subsection 2.5(b).

"Business Day": Any day other than a Saturday or a Sunday on which (a) banks are
not required or authorized to be closed in Minneapolis, Minnesota or Charlotte,
North Carolina, and (b) if the term "Business Day" is used in connection with
the determination of the Eurodollar Rate, dealings in United States dollar
deposits are carried on in the London interbank market.

"Capital Lease Obligations": For any Person, all obligations of such Person to
pay rent or other amounts under a lease of (or other agreement conveying the
right to use) Property to the extent such obligations are required to be
classified and accounted for as a capital lease on a balance sheet of such
Person under GAAP, and, for purposes of this Agreement, the amount of such
obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

"Capital Stock": Any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent equity ownership interests in a Person that is not a corporation,
including, without limitation, any and all member or other equivalent interests
in any limited liability company or partnership interests or other equivalents
in any kind of partnership, and any and all warrants or options to purchase any
of the foregoing.

"Class": With respect to a Mortgage Asset, such Mortgage Asset's classification
as a Whole Loan, a Junior Interest or a Mezzanine Loan.

"Closing Date": December 23, 2003.

"Code": The Internal Revenue Code of 1986, as amended from time to time.

"Collection Account": The account set forth on Schedule 3 established by the
Seller in the name of the Purchaser and subject to an Account Agreement, into
which all Income shall be deposited. Funds in the Collection Account may be
invested at the direction of the Purchaser in Permitted Investments.

"Commercial Real Estate": Any real estate included in the definition of Type.

"Commercial Real Estate Loan": Any loan secured by Commercial Real Estate.

"Commitment Fee": Defined in the Fee Letter.

"Commonly Controlled Entity": An entity, whether or not incorporated, that is
under common control with the Seller or the Guarantor within the meaning of
Section 4001 of ERISA or is part of a group which includes the Seller or the
Guarantor and that is treated as a single employer under Section 414 of the
Code.

"Compliance Certificate": Defined in Subsection 3.2(e).

"Confirmation": Defined in Subsection 2.2(c).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       5
<PAGE>

"Consolidated Adjusted EBITDA": For any period, the sum, without duplication,
for such period of (a) the Net Income of the Seller or the Guarantor for such
period, (b) the sum of the provisions for such period for income taxes, interest
expense, and depreciation and amortization expense used in determining such Net
Income, (c) amounts deducted in accordance with GAAP in respect of other
non-cash expenses in determining such Net Income and (d) the amount of any
aggregate net loss (or minus the amount of any gain) during such period arising
from the sale, exchange or other disposition of capital assets by the Seller or
the Guarantor.

"Consolidated Interest Expense": For any period with respect to any Person, the
amount that, in conformity with GAAP, would be set forth opposite the caption
"interest expense" or any like caption (including, without limitation, imputed
interest included in payments under financing leases) on a consolidated income
statement of such Person for such period excluding the amortization of any
original issue discount.

"Contractual Obligation": With respect to any Person, any provision of any
securities issued by such Person or any indenture, mortgage, deed of trust,
contract, undertaking, agreement, instrument or other document to which such
Person is a party or by which it or any of its Property is bound or is subject.

"Custodial Agreement": That Custodial Agreement, dated as of the date hereof, by
and among the Purchaser, the Seller and the Custodian, as the same shall be
amended, modified, waived, supplemented, extended, replaced or restated from
time to time.

"Custodial Fee Letter": The Custodial Fee Letter between the Seller and the
Custodian, as such letter may be amended, modified, waived, supplemented,
extended, restated or replaced from time to time.

"Custodial Identification Certificate": Defined in the Custodial Agreement.

"Custodian": Wells Fargo Bank Minnesota, National Association, and its successor
in interest as the custodian under the Custodial Agreement, and any successor
Custodian under the Custodial Agreement.

"Debt Service Coverage Ratio" or "DSCR": With respect to any Mortgage Asset, as
of any date of determination, for the period of time to be determined in the
Purchaser's sole discretion (it being understood that it is the Purchaser's
intent to make the determination based on the period of twelve (12) consecutive
complete calendar months preceding such date (or, if such Mortgage Asset was
originated less than twelve (12) months from the date of determination, the
number of months from the date of origination)), the ratio of (a) the aggregate
Net Cash Flow in respect of the Underlying Mortgaged Properties relating to such
Mortgage Asset for such period to (b) the sum of (i) the aggregate amount of all
amounts due for such period in respect of all Indebtedness that was outstanding
from time to time during such period that is secured, directly or indirectly, by
such Underlying Mortgaged Properties (including, without limitation, by way of a
pledge of the equity of the owner(s) of such Underlying Mortgaged Properties) or
that is otherwise owing by the owner(s) of such Underlying Mortgaged Properties,
including, without limitation, all

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       6
<PAGE>

scheduled principal and/or interest payments due for such period in respect of
each Mortgaged Asset that is secured or supported by such Underlying Mortgaged
Properties plus (ii) the amount of all Ground Lease payments to be made in
respect of such Underlying Mortgaged Properties during such period, as any of
the foregoing elements of DSCR may be adjusted by the Purchaser as determined by
the Purchaser in its discretion; provided, however, that all such calculations
shall be made taking into account any senior or pari passu debt secured directly
or indirectly by the applicable Underlying Mortgaged Property; provided,
further, however, the DSCR shall not be less than the Minimum DSCR.

"Defaulted Mortgage Asset": Any Mortgage Asset (a) that is ninety (90) days or
more delinquent, (b) for which there is a breach of any of the representations
and warranties set forth on Schedule 1 hereto, or (c) for which there is a
non-monetary default (beyond any applicable notice and cure period) under the
related Mortgage Loan Documents.

"Delinquent Mortgage Asset": A Mortgage Asset that is thirty (30) or more days,
but less than ninety (90) days, delinquent.

"Dollars" and "$": Lawful money of the United States of America.

"Due Diligence Costs": Defined in Section 13.21.

"Due Diligence Review": The performance by the Purchaser of any or all of the
reviews permitted under Section 13.21 with respect to any or all of the
Purchased Items, as desired by the Purchaser from time to time.

"Electronic Transmission": The delivery of information and executed documents in
an electronic format acceptable to the applicable recipient thereof.

"Eligible Asset": A Mortgage Asset that as of any date of determination:

         (a) is not a Defaulted Mortgage Asset or Delinquent Mortgage Asset;

         (b) with respect to the portion of such Mortgage Asset to be acquired
by the Purchaser, the funding obligations have been satisfied in full and there
is no unfunded commitment with respect thereto;

         (c) has been approved by the Purchaser in its sole and absolute
discretion;

         (d) has an LTV not in excess of the Maximum LTV;

         (e) has a DSCR equal to or greater than the Minimum DSCR;

         (f) is not a construction loan;

         (g) is not a loan to an operating business (other than a hotel);

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       7
<PAGE>

         (h) in the case a Junior Interest with a "B note" in an "A/B
structure", the "B note" has a floating rate of interest with a remaining term
to maturity of less than seven (7) years;

         (i) from and after the date that the aggregate Purchase Price for all
outstanding Transactions exceeds $100,000,000, the Seller shall, on a
prospective basis, maintain a reasonable mix of Mortgage Assets (as among the
Whole Loans, the Mezzanine Loans and the Junior Interests), as determined by the
Purchaser in its discretion; and

         (j) in the case of Wachovia Assets, more than thirty (30) Business Days
have elapsed since the date the Seller acquired such Mortgage Asset from the
Purchaser or its Affiliates (direct or indirect);

provided, however, notwithstanding a Mortgage Asset's failure to conform to the
criteria set forth above, the Purchaser may, in its sole and absolute
discretion, designate in writing any such non-compliant Mortgage Asset as an
Eligible Asset, which may include a temporary or permanent waiver of one (1) or
more Eligible Asset requirements.

"Environmental Laws": Any and all foreign, federal, state and local laws,
statutes, ordinances, rules, regulations, permits, licenses, approvals,
interpretations and orders of courts or Governmental Authorities, relating to
the protection of human health or the environment, including, but not limited
to, requirements pertaining to the manufacture, processing, distribution, use,
treatment, storage, disposal, transportation, handling, reporting, licensing,
permitting, investigation or remediation of hazardous materials. Environmental
Laws include, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C. Section 9601 et seq.), the Hazardous
Material Transportation Act (49 U.S.C. Section 331 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Federal
Water Pollution Control Act (33 U.S.C. Section 1251 et seq.), the Clean Air Act
(42 U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15 U.S.C.
Section 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. Section 300, et
seq.), the Environmental Protection Agency's regulations relating to underground
storage tanks (40 C.F.R. Parts 280 and 281), and the Occupational Safety and
Health Act (29 U.S.C. Section 651 et seq.), and the rules and regulations
thereunder, each as amended, modified, waived, supplemented, extended, restated
or replaced from time to time.

"Equity Interests": Defined in the Pledge Agreement.

"ERISA": The Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.

"ERISA Affiliate": (a) Any corporation that is a member of the same controlled
group of corporations (within the meaning of Section 414(b) of the Code) as the
Seller or the Guarantor, (b) a trade or business (whether or not incorporated)
under common control (within the meaning of Section 414(c) of the Code) with the
Seller or the Guarantor, or (c) a member of the same affiliated service group
(within the meaning of Section 414(m) of the Code) as the Seller, the Guarantor,
any corporation described in clause (a) above or any trade or business described
in clause (b) above.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       8
<PAGE>

"Eurocurrency Liabilities": Defined in Regulation D of the Board of Governors of
the Federal Reserve System, as in effect from time to time.

"Eurodollar Disruption Event": The occurrence of any of the following: (a) the
Purchaser or any of its assignees or participants has determined that it would
be contrary to law or to the directive of any central bank or other Governmental
Authority (whether or not having the force of law) to obtain United States
dollars in the London interbank market to fund any Transaction, (b) the
inability, for any reason, of the Purchaser or any of its assignees or
participants to determine the Adjusted Eurodollar Rate, (c) the Purchaser or any
of its assignees or participants shall have determined that the rate at which
deposits of United States dollars are being offered to the Purchaser or any of
its assignees or participants in the London interbank market does not accurately
reflect the cost to the Purchaser or such assignee or participant of making,
funding or maintaining any Transaction, or (d) the inability of the Purchaser or
any of its assignees or participants to obtain United States dollars in the
London interbank market to make, fund or maintain any Transaction.

"Eurodollar Period": With respect to any Transaction, (i) initially, the period
commencing on the Purchase Date with respect to such Transaction and ending on
the earlier of the related Repurchase Date and one-month, two-months,
three-months, six-months or such longer period, if available, to be offered by
the Purchaser, in each case as selected by the Seller (provided, that the Seller
may not select a Eurodollar Period longer than six-months if the last day of
such Eurodollar Period occurs after the Facility Maturity Date), and (ii)
thereafter, each period commencing on the day following the last day of the
preceding Eurodollar Period applicable to such Transaction and ending on the
earliest of (x) the related Repurchase Date, (y) the date that is one-month,
two-months, three-months, six-months or otherwise thereafter, as the case may
be, or (z) the Facility Maturity Date.

"Eurodollar Rate": With respect to each Eurodollar Period during which a
Transaction is outstanding, the rate per annum equal to the rate appearing at
page 3750 of the Telerate Screen as one-month, two-month, three-month, six-month
or other LIBOR, as selected by the Seller in accordance with this Agreement, at
or about 9:00 a.m., Charlotte, North Carolina time, three (3) Business Days
prior to the beginning of such Eurodollar Period (and if such date is not a
Business Day, the Eurodollar Rate in effect on the Business Day immediately
preceding such date), or, if no such rate appears on Telerate page 3750 at such
time and day, then the Eurodollar Rate shall be determined by Wachovia at its
principal office in Charlotte, North Carolina as its rate (each such
determination, absent manifest error, to be conclusive and binding on all
parties hereto and their assignees) at which thirty (30) day deposits in United
States Dollars are being, have been, or would be offered or quoted by Wachovia
to major banks in the applicable interbank market for Eurodollar deposits at or
about 11:00 a.m. on such day. The Purchaser's determination of Eurodollar Rate
shall be conclusive upon the parties absent manifest error on the part of the
Purchaser.

"Eurodollar Reserve Percentage": For any period means the percentage, if any,
applicable during such period (or, if more than one such percentage shall be so
applicable, the daily average of such percentages for those days in such period
during which any such percentage shall be so applicable) under regulations
issued from time to time by the Board of Governors of the Federal

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       9
<PAGE>

Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any basic, emergency, supplemental,
marginal or other reserve requirements) with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities having a term equal to the
applicable Eurodollar Period.

"Excepted Persons": Defined in Subsection 13.13(a).

"Exception": Defined in the Custodial Agreement.

"Excess Margin": Defined in Subsection 2.6(a).

"Exchange Act": The Securities Exchange Act of 1934, as amended, modified,
waived, supplemented, extended, restated or replaced from time to time.

"Executive Order": Defined in Subsection 4.1(nn).

"Existing Financing Facilities": The financing facilities identified on Schedule
5 hereto.

"Extension Fee": Defined in Section 2.4.

"Extension Fee Payment Date": Defined in Section 2.4.

"Facility Maturity Date": Subject to Article X, the earlier of (a) December 23,
2006, as such original Facility Maturity Date may be extended pursuant to
Section 2.4 hereof, or (b) the date on which this Agreement shall terminate in
accordance with the provisions hereof or by operation of law.

"Facility Period": The period commencing on the Closing Date and terminating on
the Facility Maturity Date.

"FDIA": Defined in Subsection 13.20(b).

"FDICIA": Defined in Subsection 13.20(c).

"Federal Funds Rate": For any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the overnight
federal funds rates as in Federal Reserve Board Statistical Release H.15(519) or
any successor or substitute publication selected by the Purchaser (or, if such
day is not a Business Day, for the next succeeding Business Day), or, if, for
any reason, such rate is not available on any day, the rate determined, in the
sole opinion of the Purchaser, to be the rate at which overnight federal funds
are being offered in the national federal funds market at 9:00 a.m.

"Fee Letter": The Fee Letter, dated December 23, 2003, between the Purchaser and
the Seller, as amended, modified, waived, supplemented, extended, restated or
replaced from time to time.

"Final Maturity Date": Defined in Section 2.4.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       10
<PAGE>

"Financial Covenants": The covenants set forth in Subsections 5.1(bb) - (ee).

"FIRREA Appraisal": An appraisal prepared by an independent third-party
appraiser approved by the Purchaser in its reasonable discretion and satisfying
the requirements of Title XI of the Federal Institutions, Reform, Recovery and
Enforcement Act of 1989 (as supplemented, amended, modified and replaced from
time to time) and the regulations promulgated thereunder, as in effect on the
date of such appraisal.

"Foreclosed Loan": A loan the security for which has been foreclosed upon by the
Seller.

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

"Governing Documents": As to any Person, the articles or certificate of
incorporation or formation, by-laws, limited liability company agreement,
general partnership agreement, limited partnership agreement or other applicable
organizational or governing documents of such Person.

"Governmental Authority": Any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory
authority) thereof, any body or entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
any court or arbitrator having jurisdiction over such Person, any of its
Subsidiaries or any of its Properties, and any accounting board or authority
(whether or not a part of government) that is responsible for the establishment
or interpretation of national or international accounting principles, in each
case whether foreign or domestic.

"Ground Lease": With respect to any Commercial Real Estate Loan for which the
Borrower has a leasehold interest in the related Mortgaged Property or space
lease within such Mortgaged Property, the lease agreement creating such
leasehold interest.

"Guarantee Obligation": As to any Person (the "guaranteeing person"), any
obligation (determined without duplication) of the guaranteeing person (or any
other Person, including any bank under any letter of credit, if the guaranteeing
person has issued a reimbursement, counter indemnity or similar obligation in
favor of such other Person) guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the "primary obligations")
of any other third Person (the "primary obligor") in any manner, whether
directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance or
supply funds (1) for the purchase or payment of any such primary obligation or
(2) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Guarantee

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       11
<PAGE>

Obligation of any guaranteeing person shall be deemed to be the maximum stated
amount of the primary obligation relating to such Guarantee Obligation (or, if
less, the maximum stated liability set forth in the instrument embodying such
Guarantee Obligation); provided, however, that in the absence of any such stated
amount or stated liability, the amount of such Guarantee Obligation shall be
such guaranteeing person's maximum reasonably anticipated liability in respect
thereof as reasonably determined by the Guarantor in good faith, subject to the
Seller's approval.

"Guarantor": Defined in the Preamble of this Agreement.

"Guaranty": The Guaranty, dated December 23, 2003, executed by the Guarantor in
favor of the Purchaser.

"H.15": Federal Reserve Statistical Release H.15.

"Income": With respect to any Purchased Items, at any time, all of the
following: collections, prepayments, recoveries, insurance and condemnation
proceeds and all other payments or proceeds on or in respect of the Purchased
Items, including, without limitation, any principal thereof then payable and all
interest, dividends, fees or other distributions payable thereon, less the
Servicing Fee, and amounts received from any Interest Rate Protection Agreement.
Income shall not include any Borrower Reserve Payments.

"Increased Costs": Any amounts required to be paid by the Seller to the
Purchaser pursuant to Section 2.13.

"Indebtedness": For any Person: (a) obligations created, issued or incurred by
such Person for borrowed money (whether by loan, the issuance and sale of debt
securities or the sale of Property to another Person subject to an understanding
or agreement, contingent or otherwise, to repurchase such Property from such
Person); (b) 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 in respect of letters of credit or similar instruments
issued or accepted by banks and other financial institutions for the account of
such Person; (e) obligations of such Person under repurchase agreements,
sale/buy-back agreements or like arrangements; (f) indebtedness of others
guaranteed by such Person; (g) all obligations of such Person incurred in
connection with the acquisition or carrying of fixed assets by such Person; (h)
indebtedness of general partnerships of which such Person is secondarily or
contingently liable (other than by endorsement of instruments in the course of
collection), whether by reason of any agreement to acquire such indebtedness to
supply or advance sums or otherwise; and (i) Capital Lease Obligations of such
Person.

"Indemnified Amounts": Defined in Subsection 11.1(a).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       12
<PAGE>

"Indemnified Parties": Defined in Subsection 11.1(a).

"Independent Director": A natural Person who (a) is not at the time of initial
appointment as Independent Director, and may not have been at any time during
the five (5) years preceding such initial appointment or at any time while
serving as Independent Director, (i) a stockholder, partner, member or direct or
indirect legal or beneficial owner of the Seller, the Guarantor or any Affiliate
of the Seller or the Guarantor; (ii) a contractor, creditor, customer, supplier,
director (with the exception of serving as the Independent Director of the
Seller), officer, employee, attorney, manager or other Person who derives any of
its purchases or revenues from its activities with the Seller, the Guarantor or
any Affiliate of the Seller or the Guarantor; (iii) a natural Person who
controls (directly or indirectly or otherwise) the Seller, the Guarantor or any
Affiliate of the Seller or Guarantor or who controls or is under common control
with any Person that would be excluded from serving as an Independent Director
under (i) or (ii), above; or (iv) a member of the immediate family of a natural
Person excluded from servicing as an Independent Director under (i) or (ii)
above and (b) otherwise satisfies the then current requirements of the Rating
Agencies. A Person who is an employee of a nationally recognized organization
that supplies independent directors and who otherwise satisfies the criteria in
clause (a) but for the fact that such organization receives payment from Seller
or Guarantor for providing such independent director shall not be disqualified
from serving as an Independent Director hereunder.

"Insolvency Event": With respect to a specified Person, (a) the filing of a
decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its Property in an involuntary
case under any applicable Insolvency Law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for such Person or for any substantial part of its Property, or
ordering the winding-up or liquidation of such Person's affairs, and such decree
or order shall remain unstayed and in effect for a period of ninety (90)
consecutive days; or (b) the commencement by such Person of a voluntary case
under any applicable Insolvency Law now or hereafter in effect, or the consent
by such Person to the entry of an order for relief in an involuntary case under
any such law, or the consent by such Person to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official for such Person or for any substantial part of its Property,
or the making by such Person of any general assignment for the benefit of
creditors, or the failure by such Person generally to pay its debts as such
debts become due, or the taking of action by such Person in furtherance of any
of the foregoing.

"Insolvency Laws": The Bankruptcy Code and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments or similar debtor relief laws
from time to time in effect affecting the rights of creditors generally.

"Insolvency Proceeding": Any case, action or proceeding before any court or
other Governmental Authority relating to any Insolvency Event.

"Instrument": Any "instrument" (as defined in Article 9 of the UCC), other than
an instrument that constitutes part of chattel paper.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       13
<PAGE>

"Interest Rate Protection Agreement": With respect to any or all of the Mortgage
Assets, any short sale of US Treasury securities, futures contracts, options
related contracts, interest rate swaps, cap or collar agreements or similar
arrangements providing for protection against fluctuations in interest rates or
the exchange of nominal interest obligations, either generally or under specific
contingencies, and acceptable to the Purchaser in its discretion.

"Junior Interest": (a) A junior participation interest or rated certificate in a
performing Commercial Real Estate Loan or (b) a "B note" in an "A/B structure"
in a performing Commercial Real Estate Loan.

"Junior Interest Note": The original executed promissory note, Participation
Certificate, Participation Agreement and any other evidence of a Junior
Interest, as applicable.

"Late Payment Fee": Defined in Subsection 2.5(a).

"Lien": Any mortgage, lien, pledge, charge, right, claim, security interest or
encumbrance of any kind of or on any Person's assets or properties in favor of
any other Person (including any UCC financing statement or any similar
instrument filed against such Person's assets or properties).

"Liquidity": The amount equal to the sum of (i) the Maximum Amount less the
aggregate Repurchase Price of all Purchased Assets subject to Transactions under
this Repurchase Agreement, plus (ii) the amount of cash flows of the Guarantor
in excess of the amount of cash flow required to maintain compliance with the
Financial Covenants, plus (iii) any uncalled and unfunded equity capital, plus,
(iv) to the extent the Guarantor has availability under its other facilities
that is not pledged or utilized to make capital calls in connection with the
obligations under the Repurchase Documents, the amount of such unutilized or
unpledged availability.

"Loan-to-Value Ratio" or "LTV": With respect to any Mortgage Asset, the ratio of
the outstanding principal amount of such Mortgage Asset at the time of a
Transaction for such Mortgage Asset to the Market Value of the related
Underlying Mortgaged Property at such time, which shall be determined by a third
party appraiser selected by the Purchaser, as such LTV may be adjusted by the
Purchaser as the Purchaser determines in its sole discretion; provided, however,
that all such calculations shall be made taking into account any senior or pari
passu debt secured directly or indirectly by the applicable Underlying Mortgaged
Property; provided, further, however, the LTV shall not exceed the Maximum LTV.

"Margin Base": On any day, the aggregate Asset Value of all Purchased Assets.

"Margin Deficit": Defined in Subsection 2.7(a).

"Margin Deficit Notice": Defined in Subsection 2.7(a).

"Market Value": As of any date in respect of any Mortgage Asset, the price at
which such Mortgage Asset could readily be sold, which shall be determined by a
third-party appraiser

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       14
<PAGE>

selected by the Purchaser, as such determination of price may be adjusted by the
Purchaser as the Purchaser determines in its sole discretion (which price may be
determined to be zero).

"Material Adverse Effect": A material adverse effect on (a) the Property,
business, operations, financial condition or prospects of the Seller, the
Guarantor or the Pledgor, (b) the ability of each of the Seller, the Guarantor
or the Pledgor to perform its obligations under any of the Repurchase Documents
to which it is a party, (c) the validity or enforceability of any of the
Repurchase Documents, (d) the rights and remedies of the Purchaser under any of
the Repurchase Documents, (e) the timely payment of any amounts payable under
the Repurchase Documents, or (f) the Asset Value of the Purchased Assets.

"Materials of Environmental Concern": Any mold, petroleum (including, without
limitation, crude oil or any fraction thereof) or petroleum products (including,
without limitation, gasoline), or any hazardous or toxic substances, materials
or wastes, defined as such in or regulated under any Environmental Law,
including, without limitation, asbestos, polychlorinated biphenyls and
urea-formaldehyde insulation.

"Maximum Amount": Subject to Subsection 2.3(a), $150,000,000; provided, however,
on and after the Facility Maturity Date, the Maximum Amount shall mean the
aggregate Purchase Price outstanding for all Transactions.

"Maximum LTV": With respect to any Eligible Asset at any time, the Loan-to-Value
Ratio for the related Underlying Mortgaged Property set forth on Schedule 2
under the heading "Maximum LTV" for the applicable Class of such Mortgage Asset
and the applicable Type of Underlying Mortgage Property.

"Mezzanine Collateral": Defined in Schedule 1, Part II.

"Mezzanine Loan": A performing mezzanine loan secured by pledges of all the
Capital Stock of the Person that owns income producing Commercial Real Estate.

"Mezzanine Note": The original executed promissory note or other evidence of
Mezzanine Loan indebtedness.

"Minimum DSCR": With respect to any Eligible Asset at any time, the DSCR for the
related Underlying Mortgaged Property set forth on Schedule 2 under the heading
"Minimum DSCR" for the applicable Class of such Mortgage Asset and the
applicable Type of Underlying Mortgage Property.

"Moody's": Moody's Investors Service, Inc., and any successor thereto.

"Mortgage": Each mortgage, assignment of rents, security agreement and fixture
filing, or deed of trust, assignment of rents, security agreement and fixture
filing, or similar instrument creating and evidencing a Lien on real property
and other property and rights incidental thereto.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       15
<PAGE>

"Mortgage Asset": An Assignment of a Whole Loan, a Junior Interest or a
Mezzanine Loan (i) the Underlying Mortgaged Property for which is included in
the categories for Types of Mortgage Assets, and (ii) that is listed on a
Confirmation and the Custodian has been instructed to hold for the Purchaser
pursuant to the Custodial Agreement. Mortgage Assets shall not include any
Retained Interest (if any).

"Mortgage Asset File": Defined in the Custodial Agreement.

"Mortgage Asset File Checklist": Defined in the Custodial Agreement.

"Mortgage Loan Documents": Defined in the Custodial Agreement.

"Mortgage Note": The original executed promissory note or other evidence of the
Indebtedness of a Borrower with respect to a Mortgage Asset.

"Mortgaged Property": The Commercial Real Estate (including all improvements,
buildings, fixtures, building equipment and personal property thereon and all
additions, alterations and replacements made at any time with respect to the
foregoing) and all other collateral securing repayment of the debt evidenced by
a Mortgage Note or a Junior Interest Note.

"Mortgagee": The record holder of a Mortgage Note secured by a Mortgage.

"Multiemployer Plan": A "multiemployer plan" as defined in Section 4001(a)(3) of
ERISA that is or was at any time during the current year or the immediately
preceding five (5) years contributed to by the Seller, the Guarantor or any
ERISA Affiliate on behalf of its employees.

"Net Cash Flow": With respect to any Underlying Mortgaged Property, for any
period, the Net Income (or deficit) attributable to such property for such
period, determined in accordance with GAAP, less the amount of all (a) capital
expenditures incurred, (b) reserves established, (c) leasing commissions paid
(other than commissions paid from reserves held under the Mortgage Loan
Documents) and (d) tenant improvements paid during such period (other than
tenant improvements paid from reserves held under the Mortgage Loan Documents)
in each case attributable to such property, plus all non-cash charges deducted
in the calculation of such net income.

"Net Income": With respect to any Person for any period, the net income of such
Person for such period as determined in accordance with GAAP.

"Non-Table Funded Purchased Asset": A Purchased Asset that is not a Table Funded
Purchased Asset.

"Non-Wachovia Assets": Any Mortgage Asset issued or extended by a Person other
than Wachovia Corporation or an Affiliate of Wachovia Corporation.

"OFAC Regulations": Defined in Subsection 4.1(nn).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       16
<PAGE>

"Officer's Certificate": A certificate signed by a Responsible Officer of the
Seller or the Guarantor, as applicable.

"Operating Account": The account of the Seller set forth on Schedule 3 hereto.

"Opinion of Counsel": A written opinion of counsel, which opinion and counsel
are acceptable to the Purchaser in its sole discretion.

"Original Purchase Date": The date a Purchased Asset was purchased by the Seller
or its Affiliates from Wachovia Corporation or its Affiliates other than
pursuant to this Agreement.

"Originator": With respect to each Mortgage Asset, the Person who originated
such Mortgage Asset.

"Other Costs": Defined in Subsection 13.9(c).

"Participation Agreement": Defined in the Custodial Agreement.

"Participation Certificate": Defined in the Custodial Agreement.

"Payment Date": The next to the last Business Day of each calendar month.

"PBGC": The Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

"Pension Plans": Defined in Subsection 4.1(u).

"Periodic Advance Repurchase Payment": Defined in Subsection 2.5(a).

"Permitted Investments": Investments of any one or more of the following types:

         (a) marketable obligations of the United States, the full and timely
payment of which are backed by the full faith and credit of the United States of
America and that have a maturity of not more than 270 days from the date of
acquisition;

         (b) marketable obligations, the full and timely payment of which are
directly and fully guaranteed by the full faith and credit of the United States
and that have a maturity of not more than 270 days from the date of acquisition;

         (c) bankers' acceptances and certificates of deposit and other
interest-bearing obligations (in each case having a maturity of not more than
270 days from the date of acquisition) denominated in dollars and issued by any
bank with capital, surplus and undivided profits aggregating at least
$100,000,000, the short-term obligations of which are rated of least A-1 by S&P
and P-1 by Moody's;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       17
<PAGE>

         (d) repurchase obligations with a term of not more than ten (10) days
for underlying securities of the types described in clauses (a), (b) and (c)
above entered into with any bank of the type described in clause (c) above;

         (e) commercial paper rated at least A-1 by S&P and P-1 by Moody's;

         (f) demand deposits, time deposits or certificates of deposit (having
original maturities of no more than 365 days) of depository institutions or
trust companies incorporated under the laws of the United States of America or
any state thereof (or domestic branches of any foreign bank) and subject to
supervision and examination by federal or state banking or depository
institution authorities; provided, however, that at the time such investment, or
the commitment to make such investment, is entered into, the short-term debt
rating of such depository institution or trust company shall be at least A-1 by
S&P and P-1 by Moody's; and

         (g) money market mutual funds possessing the highest available rating
from S&P and Moody's.

"Permitted Liens": Any of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced: (a) Liens
for state, municipal or other local taxes if such taxes shall not at the time be
due and payable, (b) Liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's and repairmen's Liens and other similar Liens, arising in
the ordinary course of business securing obligations that are not overdue for a
period of more than thirty (30) days, (c) Liens granted pursuant to or by the
Repurchase Documents, and (d) in the case of the Purchased Assets only and not
the Seller's interest therein, with respect to any Underlying Mortgaged
Property, Liens which are permitted pursuant to the terms of the Mortgage Loan
Documents.

"Person": An individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated
association, sole proprietorship, joint venture, government (or any agency or
political subdivision thereof) or other entity.

"Plan": An employee benefit or other plan established or maintained by any
Seller, the Guarantor or any ERISA Affiliate and covered by Title IV of ERISA,
other than a Multiemployer Plan.

"Pledge Agreement": The Pledge and Security Agreement, dated as of December 23,
2003, between the Purchaser and the Pledgor, as amended, modified, waived,
supplemented, extended, restated or replaced from time to time.

"Pledgor": Arbor Realty Limited Partnership, a Delaware limited partnership.

"Pooling and Servicing Agreements": Any and all pooling and servicing agreements
governing servicing and other matters entered into in connection with a
securitization of the senior interest in a Mortgage Asset, where such
transaction is rated by one (1) or more Rating Agencies.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       18
<PAGE>

"Post-Default Rate": In respect of any day a Transaction is outstanding or any
other amount under this Agreement or any other Repurchase Document is not paid
when due to the Purchaser at the stated Repurchase Date or otherwise when due (a
"Post-Default Day"), a rate per annum determined on a 360 day per year basis
during the period from and including the due date to but excluding the date on
which such amount is paid in full equal to the applicable Pricing Rate plus 500
basis points.

"Pre-Approved Purchaser": A bank, financial institution or similar Person having
a rating assigned by S&P of BBB or better (or an equivalent rating assigned by
another Rating Agency) or a special purpose vehicle.

"Price Differential": For each Accrual Period and each Transaction outstanding,
the sum of the products (for each day during such Accrual Period) of:

                                             R x PP x  1
                                                      ----
                                                       D

where:

           R  = the Rate applicable on such day;

           PP = the Purchase Price for such Transaction on such day; and

           D  = 360 or, to the extent the Rate is based on the Base Rate, 365 or
                366 days, as applicable,

provided, however, that (i) no provision of this Agreement shall require the
payment or permit the collection of any Price Differential in excess of the
maximum permitted by Applicable Law and (ii) the Price Differential shall not be
considered paid by any distribution if at any time such distribution is
rescinded or must otherwise be returned for any reason.

"Pricing Rate": With respect to a Mortgage Asset of a certain Class and Type, at
any date of determination a rate per annum equal to the sum of (a) the
applicable Rate on such date plus (b) the applicable Pricing Spread on such
date; provided, however, after a Termination Event, the Pricing Rate for each
Transaction shall be increased an additional 500 basis points.

"Pricing Spread": The point spreads set forth on Schedule 1 to the Fee Letter
corresponding to the Classes and Types of Mortgage Assets set forth therein.

"Prime Rate": The rate announced by Wachovia from time to time as its prime rate
in the United States, such rate to change as and when such designated rate
changes. The Prime Rate is not intended to be the lowest rate of interest
charged by Wachovia in connection with extensions of credit to debtors.

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

"PSA Servicer": A third party servicer (other than the Seller) servicing all or
a portion of the Purchased Assets under a Pooling and Servicing Agreement.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       19
<PAGE>

"Purchase Agreement": Any purchase agreement by and between the Seller and any
third party, including, without limitation, any Affiliate of the Seller,
pursuant to which the Seller has purchased Mortgage Assets subsequently sold to
the Purchaser hereunder.

"Purchase Date": The date on which Eligible Assets are transferred by the Seller
to the Purchaser or its designee (including the Custodian).

"Purchase Price": On each Purchase Date, the price at which Eligible Assets are
transferred by the Seller to the Purchaser or its designee (including the
Custodian) which shall equal the Asset Value for such Eligible Assets on the
Purchase Date decreased by the amount of any cash transferred by the Seller to
the Purchaser pursuant to Subsection 2.3(b) or Section 2.7 hereof or applied to
reduce the Seller's obligations in respect of principal under Section 2.8
hereof.

"Purchased Asset Data Summary": Defined in Subsection 5.1(t)(vi).

"Purchased Assets": The Eligible Assets sold by the Seller to the Purchaser
pursuant to a Transaction in accordance with Article II.

"Purchased Items": Defined in Subsection 8.1(a).

"Purchaser": Defined in the Preamble to this Agreement.

"Purchaser's Account": A special account (account number 4659360000127, ABA #
053000219) in the name of the Purchaser maintained at Wachovia.

"Rate": For any Eurodollar Period and for each Transaction outstanding and for
each day during such Eurodollar Period, the Rate per annum equal to the Adjusted
Eurodollar Rate plus the applicable Pricing Spread; provided, however, the Rate
for any Accrual Period shall be the Base Rate (plus the applicable Pricing
Spread) if a Eurodollar Disruption Event occurs or a Termination Event occurs.

"Rating Agency": Each of S&P, Moody's and any other statistical rating agency
that has been requested to issue a rating in connection with the matter at
issue.

"Regulations T, U and X": Regulations T, U and X of the Board of Governors of
the Federal Reserve System (or any successor), as the same may be amended,
modified, waived, supplemented, extended, restated or replaced from time to
time.

"REO Property": Real property acquired by the Seller, including a Mortgaged
Property, acquired through foreclosure of a Mortgage Asset or by deed in lieu of
such foreclosure.

"Reportable Event": Any of the events set forth in Section 4043(c) of ERISA or a
successor provision thereof, other than those events as to which the notice
requirement has been waived by regulation.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       20
<PAGE>

"Repurchase Date": The earlier of (i) the Facility Maturity Date or (ii) the
Business Day on which the Seller is to repurchase the Purchased Assets from the
Purchaser (a) as specified by the Seller and agreed to by the Purchaser in the
related Confirmation or (b) if a Transaction is terminable by the Seller on
demand, the date determined in accordance with Subsection 2.2(j), as such date
in clauses (ii)(a) and (b) may be modified by application of the provisions of
Articles II or X.

"Repurchase Documents": This Agreement, the Custodial Agreement, the Account
Agreement, the Fee Letter, the Guaranty, the Assignments, the Pledge Agreement,
each Confirmation, the Custodial Fee Letter, any UCC financing statements filed
pursuant to the terms of this Agreement or any other Repurchase Document and any
additional document the execution of which is necessary or incidental to
carrying out the terms of the foregoing documents.

"Repurchase Obligations": Defined in Subsection 8.1(b).

"Repurchase Parties": The collective reference to the Seller and the Guarantor.

"Repurchase Price": The price at which Purchased Assets are to be transferred
from the Purchaser or its designee (including the Custodian) to the 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
accrued and unpaid Price Differential applicable to each such Transaction as of
the date of such determination.

"Request for Additional Transaction for Excess Margin": Defined in Subsection
2.6(a).

"Responsible Officer": With respect to any Person, any duly authorized officer
of such Person with direct responsibility for the administration of the
Repurchase Documents and also, with respect to a particular matter, any other
duly authorized officer to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject.

"Retained Interest": (a) With respect to any Mortgage Asset with an unfunded
commitment on the part of the Seller, all of the obligations, if any, to provide
additional funding with respect to such Eligible Asset, and, (b) with respect to
any Eligible Asset that is transferred by the Seller to the Purchaser, (i) all
of the obligations, if any, of the agent(s) under the documentation evidencing
such Eligible Asset and (ii) the applicable portion of the interests, rights and
obligations under the documentation evidencing such Eligible Asset that relate
to such portion(s) of the Indebtedness that is owned by another lender or is
being retained by the Seller pursuant to clause (a) of this definition.

"S&P": Standard & Poor's, a division of The McGraw Hill Companies, Inc., and any
successor thereto.

"SEC": Defined in Subsection 13.19(a).

"Security Agreement": With respect to any Mortgage Asset, any contract,
instrument or other document related to security for repayment thereof (other
than the related Mortgage and

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       21
<PAGE>

Mortgage Note) executed by the Borrower and/or others in connection with such
Mortgage Asset, including, without limitation, any security agreement, UCC
financing statement, Liens, warranties, guaranty, title insurance policy, hazard
insurance policy, chattel mortgage, letter of credit, accounts, bank accounts or
certificates of deposit or other pledged accounts, and any other documents and
records relating to any of the foregoing.

"Seller": Defined in the Preamble of this Agreement.

"Seller Asset Schedule": Defined in the Custodial Agreement.

"Seller-Related Obligations": Any obligations of the Seller hereunder and under
any other arrangement between the Seller, the Guarantor or an Affiliate of the
Seller or the Guarantor on the one hand and the Purchaser or an Affiliate of the
Purchaser on the other hand.

"Seller Release Letter": Defined in Subsection 3.2(l).

"Servicer": A Person (other than the Seller) servicing all or a portion of the
Purchased Assets under a Servicing Agreement, which Servicer shall be acceptable
to the Purchaser in its reasonable discretion.

"Servicer Account": Any account established by a Servicer or a PSA Servicer in
connection with the servicing of the Purchased Assets.

"Servicer Default": Defined in Section 6.15.

"Servicer Notice": The notice from the Seller to a Servicer, substantially in
the form of Exhibit VIII attached hereto.

"Servicing Agreement": An agreement entered into by the Seller and a third party
for the servicing of the Purchased Assets, the form and substance of which has
been approved by the Purchaser in its reasonable discretion.

"Servicing Fee": Defined in Section 6.12.

"Servicing File": With respect to each Purchased Asset, the file retained by the
Seller consisting of the originals of all documents in the Mortgage Asset File
that are not delivered to the Custodian and copies of all documents in the
Mortgage Asset File set forth in Section 3.1 of the Custodial Agreement.

"Servicing Records": Defined in Section 6.2.

"SIPA": Defined in Subsection 13.19(a).

"Solvent": As to any Person at any time, having a state of affairs such that all
of the following conditions are met: (a) the fair value of the Property of such
Person is greater than the amount of such Person's liabilities (including
disputed, contingent and unliquidated liabilities) as such

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       22
<PAGE>

value is established and liabilities evaluated for purposes of Section 101(32)
of the Bankruptcy Code; (b) the present fair salable value of the Property of
such Person in an orderly liquidation of such Person is not less than the amount
that will be required to pay the probable liability of such Person on its debts
as they become absolute and matured; (c) such Person is able to realize upon its
Property and pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities) as they mature in the normal course of business;
(d) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person's ability to pay as such debts and
liabilities mature; and (e) such Person is not engaged in a business or a
transaction, and is not about to engage in a business or a transaction, for
which such Person's Property would constitute unreasonably small capital.

"Sub-Limit": With respect to the characteristics of the Underlying Mortgaged
Properties:

         (a) the aggregate Purchase Price for all outstanding Transactions
involving Junior Interests shall not exceed 75% of the Maximum Amount;

         (b) the aggregate Purchase Price for all outstanding Transactions
involving Mezzanine Loans shall not exceed 60% of the Maximum Amount;

         (c) the aggregate Purchase Price for all outstanding Transactions
involving Ground Leases shall not exceed 25% of the Maximum Amount; and

         (d) the aggregate Purchase Price for all outstanding Transactions
involving hotels shall not exceed 25% of the Maximum Amount.

"Subsidiary": With respect to any Person, any corporation, partnership, limited
liability company 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, limited liability company 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.

"Table Funded Purchased Asset": A Purchased Asset which is sold to the Purchaser
simultaneously with the origination or acquisition thereof, which origination or
acquisition, pursuant to the Seller's request, is financed with the Purchase
Price and paid directly to a title company or other settlement agent, in each
case, approved by the Purchaser in its sole discretion, for disbursement to the
parties entitled thereto in connection with such origination or acquisition. A
Purchased Asset shall cease to be a Table Funded Purchased Asset after the
Custodian has delivered a Trust Receipt to the Purchaser certifying its receipt
of the Mortgage Asset File therefor.

"Table Funded Trust Receipt": A Trust Receipt in the form of Annex 2-B to the
Custodial Agreement.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       23
<PAGE>

"Tangible Net Worth": As of a particular date:

         (a) all amounts that would be included under capital on a balance sheet
of the Seller or the Guarantor, as applicable, at such date determined in
accordance with GAAP, less

         (b)(i) amounts owing to the Seller or the Guarantor, as applicable,
from Affiliates, or from officers, employees, partners, members, directors,
shareholders or other Persons similarly affiliated with the Seller or the
Guarantor, as applicable, or their respective Affiliates, (ii) intangible assets
of the Seller or the Guarantor, as applicable, and (iii) the value of REO
Property and Foreclosed Loans of the Seller or the Guarantor, as applicable.

"Taxes": Any present or future taxes, levies, imposts, duties, charges,
assessments or fees of any nature (including interest, penalties, and additions
thereto) that are imposed by any Governmental Authority.

"Termination Event": Defined in Section 10.1.

"Test Period": The most recent calendar quarter.

"Title Exception": Defined in Schedule 1, Part I.

"Total Indebtedness": With respect to any Person, for any period, the aggregate
consolidated Indebtedness of such Person during such period maintained in
accordance with GAAP.

"Transaction": Defined in Section 2.1.

"Transaction Request": Defined in Subsection 2.2(a).

"Transfer Documents" The documents executed by the Seller with respect to a
Purchased Asset which transfer title to such Purchased Asset to the Purchaser,
including, without limitation, an Assignment and any Assignment of Mortgage and
UCC-3 assignments.

"Transferee": Defined in Subsection 13.16(a).

"Transferor": The seller of mortgage assets under a Purchase Agreement.

"True Sale Opinion": A "true sale" opinion of outside counsel to the Seller in
form and substance satisfactory to the Purchaser.

"Trust Receipt": Defined in the Custodial Agreement.

"Type": With respect to a Mortgaged Property, such Mortgaged Property's
classification as one of the following: multifamily, retail, office, industrial,
hotel or self-storage facility.

"UCC-9 Policy": Defined in Schedule I, Part II.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       24
<PAGE>

"UCC Financing Statement": A financing statement on Form UCC-1 or the proper
national UCC form, naming the Purchaser as the "Secured Party" and the Seller as
the "Debtor" and describing the Purchased Items.

"Underlying Mortgaged Property": (a) In the case of a Whole Loan, the Mortgaged
Property securing the Whole Loan, (b) in the case of a Junior Interest, the
Mortgaged Property securing such Junior Interest (if the Junior Interest is of
the type described in clause (a) of the definition thereof), or the Mortgaged
Property securing the Mortgage Loan in which such Junior Interest represents a
junior participation (if the Junior Interest is of the type described in clause
(b) of the definition thereof), and, (c) in the case of a Mezzanine Loan, the
Mortgaged Property that is held by the Person the Capital Stock of which is
pledged as collateral security for such Mezzanine Loan.

"Underwriting Package": Any internal document prepared by the Seller for its
evaluation of a Mortgage Asset, to include at a minimum the data required in the
relevant Confirmation. In addition, with respect to any Mortgage Asset, the
Underwriting Package shall include, to the extent applicable, (i) a copy of the
appraisal, (ii) the current rent roll, (iii) a minimum of two (2) years of
property level financial statements to the extent available, (iv) the current
financial statement of the Borrower on the Commercial Mortgage Loan, (vi) the
complete Mortgage Asset File, (vii) any financial analysis, site inspection,
market studies and any other diligence conducted by the Seller, and (viii) such
further documents or information as the Purchaser may request.

"Uniform Commercial Code" or "UCC": The Uniform Commercial Code as in effect on
the date hereof in the State of New York; provided that if by reason of
mandatory provisions of law, the perfection or the effect of perfection or
non-perfection of the security interest in any Purchased Items is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than New York,
"Uniform Commercial Code" shall mean the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non-perfection.

"United States": The United States of America.

"Unmatured Termination Event": Any event that, with the giving of notice or the
lapse of time, or both, would become a Termination Event.

"Unused Fee": The "Unused Fee" payable under the Fee Letter.

"Wachovia": Wachovia Bank, National Association, a national banking association
in its individual capacity, and its successors and assigns.

"Wachovia Assets": Any Mortgage Asset issued or extended by Wachovia Corporation
or an Affiliate of Wachovia Corporation.

"Warehouse Lender's Release Letter": Defined in Subsection 3.2(l).

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       25
<PAGE>

"Whole Loan": A performing Commercial Real Estate whole loan secured by a first
priority security interest in the Underlying Mortgaged Property.

         SECTION 1.2 OTHER TERMS.

         All accounting terms used but not specifically defined herein shall be
construed in accordance with GAAP. All terms used in Article 9 of the UCC in the
State of New York, and used but not specifically defined herein, are used herein
as defined in such Article 9.

         SECTION 1.3 COMPUTATION OF TIME PERIODS.

         Unless otherwise stated in this Agreement, in the computation of a
period of time from a specified date to a later specified date, the word "from"
means "from and including" and the words "to" and "until" each mean "to but
excluding."

         SECTION 1.4 INTERPRETATION.

         In each Repurchase Document, unless a contrary intention appears:

         (i)      the singular number includes the plural number and vice versa;

         (ii)     reference to any Person includes such Person's successors and
assigns but, if applicable, only if such successors and assigns are permitted by
the Repurchase Documents;

         (iii)    reference to any gender includes each other gender;

         (iv)     reference to day or days without further qualification means
calendar days;

         (v)      reference to any time means Charlotte, North Carolina time;

         (vi)     reference to any agreement (including any Repurchase
Document), document or instrument means such agreement, document or instrument
as amended, supplemented or modified and in effect from time to time in
accordance with the terms thereof and, if applicable, the terms of the other
Repurchase Documents, and reference to any promissory note includes any
promissory note that is an extension or renewal thereof or a substitute or
replacement therefor; and

         (vii)    reference to any Applicable Law means such Applicable Law as
amended, modified, codified, replaced or reenacted, in whole or in part, and in
effect from time to time, including rules and regulations promulgated thereunder
and reference to any Section or other provision of any Applicable Law means that
provision of such Applicable Law from time to time in effect and constituting
the substantive amendment, modification, codification, replacement or
reenactment of such Section or other provision.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       26
<PAGE>

                                   ARTICLE II

                          PURCHASE OF ELIGIBLE ASSETS

         SECTION 2.1 PURCHASE AND SALE.

         Subject to the terms and conditions hereof, from time to time during
the Facility Period and at the written request of the Seller, the parties hereto
shall enter into transactions in which the Seller transfers Eligible Assets to
the Purchaser in a sales transaction against the transfer of funds by the
Purchaser representing the Purchase Price for such Purchased Assets, with a
simultaneous agreement by the Purchaser to transfer to the Seller and the Seller
to repurchase such Purchased Assets in a repurchase transaction at a date
certain not later than the Facility Maturity Date, against the transfer of funds
by the Seller representing the Repurchase Price for such Purchased Assets. Each
such transaction shall be referred to herein as a "Transaction" and shall be
governed by this Agreement, unless otherwise agreed in writing.

         SECTION 2.2 TRANSACTION MECHANICS; RELATED MATTERS.

         (a) From time to time during the Facility Period but no more frequently
than once per week, in the sole and absolute discretion of the Purchaser, the
Purchaser will purchase from the Seller the Seller's rights and interests (but
none of its obligations) under certain Eligible Assets; provided, however, at no
time shall the Seller have more than twenty (20) Transactions outstanding under
this Agreement and at no time shall the aggregate Purchase Price of the
outstanding Transactions and any proposed Transactions exceed the Maximum
Amount. The Seller shall request a Transaction by delivering to the Purchaser
(with a copy to the Custodian), via Electronic Transmission, an executed request
in the form of Exhibit IV attached hereto (a "Transaction Request"), a Seller
Asset Schedule and an Underwriting Package. The Transaction Request shall set
forth, among other things, (i) the proposed Purchase Date, that, except with
respect to the initial Transaction, shall be at least, (A) in the case of
Non-Wachovia Assets, twelve (12) Business Days (in the case of each individual
Eligible Asset identified in a Transaction Request plus twelve (12) additional
Business Days for each additional Eligible Asset in excess thereof identified in
a Transaction Request), and, (B) in the case of Wachovia Assets, seven (7)
Business Days (in the case of each individual Eligible Asset identified in a
Transaction Request plus seven (7) additional Business Days for each additional
Eligible Asset in excess thereof identified in a Transaction Request) after the
delivery of the Transaction Request, the Seller Asset Schedule, the complete
Underwriting Package and any supplemental requests (requested orally or in
writing) relating to the proposed Eligible Assets, (ii) the proposed Purchase
Price, which shall be in a minimum amount of $1,000,000, (iii) the proposed
Repurchase Date, (iv) the applicable Class and Type for each Mortgage Asset for
which the Seller is requesting the Transaction, and (v) additional terms or
conditions not inconsistent with this Agreement. The Purchaser shall have, (1)
in the case of Non-Wachovia Assets, ten (10) Business Days (in the case of each
individual Eligible Asset identified in a Transaction Request plus ten (10)
additional Business Days for each additional Eligible Asset in excess thereof
identified in a Transaction Request), and, (2) in the case of Wachovia Assets,
five (5) Business

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       27
<PAGE>

Days (in the case of each individual Eligible Asset identified in a Transaction
Request plus five (5) additional Business Days for each additional Eligible
Asset in excess thereof identified in a Transaction Request) from the receipt
thereof to review the Transaction Request, the Seller Asset Schedule, the
Underwriting Package and any supplemental requests (requested orally or in
writing) relating to the proposed Eligible Assets.

         (b) The Purchaser shall notify the Seller of the Purchaser's tentative
approval (and the proposed Purchase Price for each Eligible Asset) or final
disapproval of each proposed Eligible Asset within, (i) in the case of
Non-Wachovia Assets, ten (10) Business Days (in the case of each individual
Eligible Asset identified in a Transaction Request plus ten (10) additional
Business Days for each additional Eligible Asset in excess thereof identified in
a Transaction Request) and, (ii) in the case of Wachovia Assets, five (5)
Business Days (in the case of each individual Eligible Asset identified in a
Transaction Request plus five (5) additional Business Days for each additional
Eligible Asset in excess thereof identified in a Transaction Request) after its
receipt of the Transaction Request, the Seller Asset Schedule, the complete
Underwriting Package and any supplemental requests (requested orally or in
writing) relating to such proposed Eligible Asset. Unless the Purchaser notifies
the Seller of the Purchaser's approval of such proposed Eligible Asset within
the applicable period, the Purchaser shall be deemed not to have approved such
proposed Eligible Asset.

         (c) Provided that the Purchaser has tentatively agreed to purchase the
Eligible Assets described in the Transaction Request and the proposed Purchase
Price is acceptable to the Seller, the Seller shall forward to the Purchaser,
via Electronic Transmission, at least two (2) Business Days prior to the
requested Purchase Date an executed confirmation of each Transaction,
substantially in the form of Exhibit II attached hereto (a "Confirmation"). The
Confirmation shall specify any additional terms or conditions of the Transaction
not inconsistent with this Agreement. The Confirmation shall be irrevocable and
shall be deemed to be a certification by the Seller that all conditions
precedent to such Transaction set forth in Article III have been satisfied
(except the Purchaser's consent). Unless otherwise agreed in writing, upon
receipt of the Confirmation, the Purchaser may, in its sole and absolute
discretion, agree to enter into the requested Transaction with respect to an
Eligible Asset, and such agreement shall be evidenced by the Purchaser's
signature on the Confirmation. Any Confirmation executed by the Purchaser shall
be deemed to have been received by the Seller on the date actually received by
the Seller.

         (d) Upon receipt of the Confirmation executed by the Purchaser, (i) the
Seller shall release or cause to be released to the Custodian in accordance with
the Custodial Agreement (1) in the case of a Non-Table Funded Purchased Asset,
no later than 11:00 a.m. two (2) Business Days prior to the requested Purchase
Date, and, (2) in the case of a Table Funded Purchased Asset, no later than 1:00
p.m. three (3) Business Days following the applicable Purchase Date, the
Mortgage Asset File pertaining to each Eligible Asset to be purchased by the
Purchaser, and (ii) the Seller shall deliver to the Custodian, in connection
with the applicable delivery under clause (i) above, a Custodial Identification
Certificate and a Mortgage Asset File Checklist required under Section 3.2 of
the Custodial Agreement.

         (e) Except as set forth in Section 2.3, each Confirmation, together
with this Agreement, shall constitute conclusive evidence of the terms agreed
between the Purchaser and

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       28
<PAGE>

the Seller with respect to the Transaction to which the Confirmation relates,
and the Seller's acceptance of the related proceeds shall constitute the
Seller's agreement to the terms of such Confirmation. It is the intention of the
parties that each Confirmation shall not be separate from this Agreement but
shall be made a part of this Agreement.

         (f) Subject to the terms and conditions of this Agreement, during the
term of this Agreement, the Seller may sell to the Purchaser, repurchase from
the Purchaser and resell to the Purchaser Eligible Assets hereunder.

         (g) In no event shall a Transaction be entered into when any Unmatured
Termination Event or Termination Event has occurred and is continuing or when
the Repurchase Date for such Transaction would be later than the Facility
Maturity Date.

         (h) Pursuant to the Custodial Agreement, the Custodian shall deliver to
the Purchaser and the Seller by 11:00 a.m. on the Purchase Date for each
Non-Table Funded Purchased Asset a Trust Receipt and an Asset Schedule and
Exception Report with respect to the Eligible Assets that the Seller has
requested Purchaser purchase on such Purchase Date. With respect to each Table
Funded Purchased Asset, the Seller shall cause the Bailee to deliver to the
Custodian with a copy to the Purchaser no later than 10:00 a.m. on the Purchase
Date by facsimile the related Basic Mortgage Asset Documents, the insured
closing letter (if any), the escrow instructions (if any), a fully executed
Bailee Agreement, a Bailee's Trust Receipt issued by the Bailee thereunder and
such other evidence satisfactory to the Purchaser in its discretion that all
documents necessary to effect a transfer of the Purchased Assets to the
Purchaser have been delivered to Bailee. With respect to each Table Funded
Purchased Asset, the Custodian shall deliver to the Purchaser a Table Funded
Trust Receipt no later than 1:00 p.m. on the Purchase Date, which documents
shall be acceptable to the Purchaser in its sole discretion. In the case of a
Table Funded Purchased Asset, on the second (2nd) Business Day following the
Custodian's receipt of the related Mortgage Loan Documents comprising the
Mortgage Asset File, the Custodian shall deliver to the Purchaser a Trust
Receipt certifying its receipt of the documents required to be delivered
pursuant to the Custodial Agreement, together with an Asset Schedule and
Exception Report relating to the Basic Mortgage Asset Documents, with any
Exceptions identified by the Custodian as of the date and time of delivery of
such Asset Schedule and Exception Report. The Custodian shall deliver to the
Purchaser an Asset Schedule and Exception Report relating to all of the Mortgage
Loan Documents within five (5) Business Days of its receipt of the Mortgage
Asset Files. Subject to the provisions of this Article II and Article V of the
Custodial Agreement, the Purchase Price for each Eligible Asset will be made
available to the Seller in accordance with Subsection 2.2(i).

         (i) On each Purchase Date, the Purchaser shall, upon satisfaction of
the applicable conditions set forth in this Section 2.2 and Article III, make
available to the Seller in same day funds to the Operating Account an amount
equal to the least of (i) the Purchase Price for such Transaction(s), (ii) an
amount equal to the Availability on such Purchase Date, or (iii) the Maximum
Amount.

         (j) In the case of individual Transactions terminable upon demand (if
any), such demand shall be made by the Purchaser or the Seller no later than
such time as is customary in

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       29
<PAGE>

accordance with market practice, by telephone or otherwise, on or prior to the
Business Day on which such termination will be effective. The Seller shall
repurchase the Purchased Assets by no later than 3:00 p.m. on the Repurchase
Date. On a Repurchase Date, termination of a Transaction will be effected by
transfer to the Seller or its designee of the Purchased Assets after the
Purchaser receives the Repurchase Price for the Purchased Asset. In connection
with the termination of a Transaction, any Income in respect of any Purchased
Assets received by the Purchaser and not previously credited or transferred to,
or applied to the obligations of, the Seller pursuant to Section 2.8 shall be
netted against the Repurchase Price by the Purchaser. To the extent a net amount
is owed to one party, the other party shall pay such amount to such party.

         (k) Notwithstanding anything contained in this Agreement or any
Repurchase Document to the contrary, in no event may the Seller sell or the
Purchaser purchase a Wachovia Asset if less than thirty (30) Business Days have
elapsed since the Seller acquired such asset from Wachovia or its Affiliates
(direct or indirect).

         SECTION 2.3 REDUCTION OF MAXIMUM AMOUNT; OPTIONAL REPURCHASES.

         (a) Prior to the Facility Maturity Date (as it may be extended from
time to time in accordance with Section 2.4), the Seller shall have the right on
an annual basis, upon at least two (2) Business Days' prior written notice to
the Purchaser, to terminate in whole or reduce in part the portion of the
Maximum Amount that exceeds the sum of the aggregate Purchase Price for all
Transactions outstanding, accrued Price Differential and Breakage Costs;
provided, however, that each partial reduction of the Maximum Amount shall be in
an aggregate amount equal to $1,000,000 or an integral multiple thereof. Each
notice of reduction or termination pursuant to this Subsection 2.3(a) shall be
irrevocable.

         (b) The Seller may repurchase Purchased Assets or pay a portion of the
Purchase Price outstanding without penalty or premium (but subject to Subsection
2.5(b)) on any date. If the Seller intends to make such a repurchase or payment,
the Seller shall give two (2) Business Days' prior written notice thereof to the
Purchaser, designating the Purchased Assets to be repurchased or to which such
payment is to be applied. If such notice is given, on receipt of the Repurchase
Price (or portion thereof) for the Purchased Assets specified in such notice,
such amount shall be applied to the Purchase Price for the designated Purchased
Assets. The amount of the Purchase Price of the Purchased Assets thus
repurchased shall be available for subsequent Transactions subject to the terms
of this Agreement.

         SECTION 2.4 EXTENSION OF FACILITY MATURITY DATE.

         At the written request of the Seller delivered to the Purchaser no
earlier than sixty (60) days and no later than forty-five (45) days prior to the
Facility Maturity Date, the Purchaser may in its sole discretion grant one
extension of the Facility Maturity Date for a period not to exceed one (1) year
by giving written notice of such extension and the final Facility Maturity Date
(the "Final Maturity Date") to the Seller no later than fifteen (15) days before
the expiration of the Facility Maturity Date. Any failure by the Purchaser to
deliver such notice of extension shall be deemed to be the Purchaser's
determination not to extend the original Facility Maturity Date. An extension of
the Facility Maturity Date is subject to the following requirements: (i) no

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       30
<PAGE>

Unmatured Termination Event or Termination Event shall have occurred and be
continuing on the date of the request to extend or thereafter to and including
the original Facility Maturity Date, (ii) the Seller shall pay to the Purchaser
an extension fee ("Extension Fee"), payable in quarterly installments over the
term of the extension commencing with the original Facility Termination Date
(or, if such day is not a Business Day, the next Business Day) and on the
twenty-third (23rd) day (or, if such day is not a Business Day, the next
Business Day) (the "Extension Fee Payment Date") of every third (3rd) month
thereafter, calculated as the sum of the products of (A) 1/8%, and (B) the
Purchase Price outstanding on the Extension Fee Payment Date; provided, however,
if the Facility Maturity Date is extended for less than a one (1) year period,
the Extension Fee will be calculated in the same manner except that the period
of time over and the dates on which the Extension Fee is payable shall be
adjusted accordingly, (iii) no additional Transactions shall be permitted to be
entered into after the original Facility Maturity Date, (iv) the Seller must
amortize and pay to the Purchaser the aggregate Repurchase Price for all
Transactions then outstanding in equal quarterly installments over the term of
the extension commencing with the first (1st) Payment Date after the original
Facility Maturity Date and on the Payment Date for each quarter thereafter, and,
(v) not later than the Final Maturity Date, the Seller shall pay to Purchaser an
amount equal to the aggregate Repurchase Price then outstanding, together with
the other Aggregate Unpaids and any other amounts then owing to the Purchaser by
the Seller pursuant to this Agreement or any other Repurchase Document. The
Seller confirms that the Purchaser, in its sole and absolute discretion, without
regard to the value or performance of the Purchased Assets or any other factor,
may elect not to extend the Facility Maturity Date.

         SECTION 2.5 PAYMENT OF PRICE DIFFERENTIAL.

         (a) Notwithstanding that the Purchaser and the Seller intend that the
Transactions hereunder be sales to the Purchaser of the Purchased Assets, the
Seller shall pay to the Purchaser the accreted value of the Price Differential
of each Transaction (each such payment, a "Periodic Advance Repurchase Payment")
on each Payment Date. The Purchaser shall deliver to the Seller, via Electronic
Transmission, notice of the required Periodic Advance Repurchase Payment (along
with the calculation of the Unused Fee, if any, and other amounts owed and to be
paid under Section 2.8) on or prior to the second (2nd) Business Day preceding
each Payment Date. If the Seller fails to make all or part of the Periodic
Advance Repurchase Payment and the other amounts due by 3:00 p.m. on the Payment
Date, the Seller shall be obligated to pay to the Purchaser (in addition to, and
together with, the Periodic Advance Repurchase Payment and the other amounts
due) interest on the unpaid amounts at a rate per annum equal to the
Post-Default Rate (the "Late Payment Fee") until the unpaid amounts are received
in full by the Purchaser. If the Periodic Advance Repurchase Payment includes
any estimated Price Differential, the Purchaser shall recalculate such Price
Differential after the Payment Date and, if necessary, make adjustments to the
Periodic Advance Repurchase Payment amount due on the following Payment Date.

         (b) If the Seller repurchases Purchased Assets on any day prior to the
last day of the Eurodollar Period or if the Seller repurchases Purchased Assets
on any day that is not a Repurchase Date for such Purchased Assets, the Seller
shall indemnify the Purchaser and hold the Purchaser harmless from any losses,
costs and/or expenses that the Purchaser may sustain or

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       31
<PAGE>

incur arising from the reemployment of funds obtained by the Purchaser hereunder
or from fees payable to terminate the deposits from which such funds were
obtained ("Breakage Costs"), in each case for the remainder of the Eurodollar
Period. The Purchaser shall deliver to the Seller a statement setting forth the
amount and basis of determination of any Breakage Costs in such detail as
determined in good faith by the Purchaser to be adequate, it being agreed that
such statement and the method of its calculation shall be conclusive and binding
upon the Seller absent manifest error. This Subsection 2.5(b) shall survive
termination of this Agreement and the repurchase of all Purchased Assets subject
to Transactions hereunder.

         SECTION 2.6 REQUEST FOR ADDITIONAL TRANSACTION FOR EXCESS MARGIN.

         (a) If, at any time during the Facility Period, the Margin Base exceeds
the aggregate Purchase Price of all Transactions then outstanding, so long as no
Unmatured Termination Event or Termination Event has occurred and is continuing,
the Seller may request an additional Transaction for Excess Margin by delivering
to the Purchaser, via Electronic Transmission, at least two (2) Business Days
prior to the requested Purchase Date, an executed Request for Additional
Transaction for Excess Margin in the form of Exhibit IX attached hereto
("Request for Additional Transaction for Excess Margin"); provided, however,
that the Purchase Price of the outstanding Transactions and the Purchase Price
set forth in the proposed Request for Additional Transaction for Excess Margin
shall not exceed the Maximum Amount. The Request for Additional Transaction for
Excess Margin shall, among other things, (A) specify (i) the amount of the
additional Purchase Price to be paid by Purchaser in respect of the outstanding
Transactions, (ii) the requested Purchase Date, (iii) the Excess Margin with
respect to all outstanding Transactions before giving effect to the requested
Transaction, (iv) the remaining Excess Margin after giving effect to the
requested Transaction, (v) the aggregate Purchase Price of all Transactions
outstanding after giving effect to the requested Transaction, and (vi) the
Request for Additional Transaction for Excess Margin equals or exceeds
$1,000,000, and (B) include a certification that, (x) upon the consummation of
the additional Transaction, the Margin Base will be equal to or greater than the
aggregate Purchase Price of all outstanding Transactions, and (y) all conditions
precedent to such Transaction set forth in Articles II and III have been
satisfied. Each Request for Additional Transaction for Excess Margin shall be
irrevocable. For the purposes of this Section 2.6, "Excess Margin" shall be the
excess of the Margin Base over the aggregate Purchase Price of all outstanding
Transactions as of the date of such determination.

         (b) Upon confirming that the Request for Additional Transaction for
Excess Margin correctly reflects the information set forth in Subsection 2.6(a)
and that, after giving effect to the requested Transaction, the amount of the
Margin Base would be equal to or greater than the aggregate Purchase Price of
all outstanding Transactions, within two (2) Business Days the Purchaser shall
remit in accordance with Subsection 2.2(i) an amount equal to the lesser of (i)
the additional Purchase Price set forth in such Request for Additional
Transaction for Excess Margin and (ii) the Availability, and the Purchaser shall
send a revised Confirmation with respect to such Purchased Assets. In the event
that the Purchaser's assessment of the Margin Base would alter the information
set forth in any Request for Additional Transaction for Excess Margin, the
Purchaser shall promptly notify the Seller in writing of such assessment.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       32
<PAGE>

         (c) The Purchaser shall not be obligated to remit the additional
Purchase Price requested pursuant to a Request for Additional Transaction for
Excess Margin where the Purchaser reasonably determines the Margin Base as
calculated by the Seller (i) is based on erroneous information or would result
in a Transaction other than in accordance with the terms of this Agreement, or
(ii) does not reflect the Purchaser's current determination of Market Value as
provided in the definition thereof.

         SECTION 2.7 MARGIN ACCOUNT MAINTENANCE.

         (a) If at any time the Purchaser determines (based on such factors as
the Purchaser determines to rely on its sole discretion, including but not
limited to a credit analysis of the Underlying Mortgaged Properties and the
current market conditions for the Mortgage Asset) that the Margin Base is less
than the aggregate Purchase Price for all outstanding Transactions (a "Margin
Deficit"), then the Purchaser may by notice to the Seller in the form of Exhibit
XII (as such notice is more particularly set forth below, a "Margin Deficit
Notice") require the Seller to transfer to the Purchaser or its designee
(including the Custodian) cash or Eligible Assets so that the aggregate Asset
Value of the Purchased Assets will thereupon equal or exceed the aggregate
Purchase Price for all outstanding Transactions, provided that, prior to or
contemporaneously with the delivery of such Margin Deficit Notice, the Purchaser
has informed the Seller of the methodology (in reasonable detail) utilized by
the Purchaser to determine such Margin Deficit. Notwithstanding anything to the
contrary in this Agreement, the Seller shall transfer such cash or Eligible
Assets to the Purchaser's Account no later than twenty-four (24) hours after
such Margin Deficit Notice shall be deemed to have been received under Section
13.2. All cash transferred to the Purchaser pursuant to this Section 2.7 shall
be deposited in the Purchaser's Account and shall be attributed to such
Transaction as the Purchaser shall determine in its sole discretion. Eligible
Assets shall be transferred to the Purchaser in the same manner as Eligible
Assets are transferred under Section 2.2.

         (b) To the extent any such Margin Deficit is the result of a reduction
in the Market Value of any Mortgage Asset, the Seller may dispute the
determination of such Market Value by the Purchaser pursuant to the provisions
of Section 2.10 of this Agreement, provided that no such dispute shall relieve,
waive or delay the Seller's obligation to timely satisfy the Margin Deficit in
accordance with this Section 2.7. The failure of the Seller to satisfy the
Margin Deficit on a timely basis shall constitute a Termination Event and the
Seller shall be precluded from disputing the Margin Base determined by the
Purchaser. If (i) the Seller satisfies the Margin Deficit on a timely basis,
(ii) the Seller timely satisfies the provisions set forth in Section 2.10 of
this Agreement with respect to a dispute of the determination of the Market
Value of any Purchased Asset, and, (iii) pursuant to the terms of such Section
2.10, a revised Market Value for such Mortgage Asset is determined that (if used
in lieu of the Market Value used by the Purchaser in determining the Margin
Base) would have resulted in a reduction of the Margin Deficit paid by the
Seller, then the Purchaser shall promptly remit the difference to the Seller
without any interest or other amounts due thereon.

         (c) The Purchaser's election, in its sole and absolute discretion, not
to deliver a Margin Deficit Notice at any time there is a Margin Deficit shall
not in any way limit or impair its right to deliver a Margin Deficit Notice at
any time a Margin Deficit exists.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       33
<PAGE>

         SECTION 2.8 INCOME PAYMENTS.

         The Purchaser shall be entitled to receive an amount equal to all
Income paid or distributed on or in respect of the Purchased Items, which amount
shall be deposited by the Seller and any Servicer or PSA Servicer under a
Pooling and Servicing Agreement into the Collection Account. The Seller hereby
agrees to instruct each applicable Servicer to transfer within two (2) Business
Days of receipt thereof, and each applicable PSA Servicer under a Pooling and
Servicing Agreement to deposit within two (2) Business Days of the date on which
such Person is obligated under the applicable Pooling and Servicing Agreement to
disburse such funds, all Income with respect to the Purchased Items directly
into the Collection Account. On each Payment Date, any amounts on deposit in the
Collection Account shall be withdrawn by the Purchaser and shall be applied as
follows:

         FIRST, to the payment of all fees, expenses, and other obligations then
due to the Purchaser pursuant to this Agreement (including, without limitation,
the Unused Fee and the Commitment Fee), other than the Price Differential and
Purchase Price on the Purchased Assets;

         SECOND, to the extent not paid by the Seller, to the payment of fees
and expenses owed to the Custodian under the Custodial Agreement or Custodial
Fee Letter;

         THIRD, to the payment of accrued and unpaid Price Differential on the
Purchased Assets and Late Payment Fees outstanding;

         FOURTH, to the extent not previously paid pursuant to Section 2.3, to
pay the Repurchase Price for Purchased Assets then subject to a request to
repurchase in accordance with the terms of Section 2.3;

         FIFTH, without limiting the Seller's obligations to cure Margin
Deficits in a timely manner in accordance with Section 2.7, to the Purchaser for
the payment of any Margin Deficit outstanding;

         SIXTH, to the extent any Income includes payments or prepayments of
principal on the underlying Mortgaged Asset (including, without limitation,
insurance or condemnation proceeds or recoveries from any foreclosures), such
payments shall be applied to reduce the aggregate Purchase Price outstanding for
the related Transaction;

         SEVENTH, to the payment of Breakage Costs, Indemnified Amounts,
Increased Costs, Additional Amounts and all other amounts then due and owing to
the Purchaser pursuant to this Agreement and the other Repurchase Documents; and

         EIGHTH, to the Operating Account, for such purposes as the Seller shall
determine in its sole discretion.

provided, however, that if a Margin Deficit is outstanding or an Unmatured
Termination Event or Termination Event has occurred and is continuing, such
amounts shall not be transferred to the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       34
<PAGE>

Operating Account but shall remain in the Collection Account and applied in
reduction of the Aggregate Unpaids.

         Notwithstanding anything to the contrary contained herein, in the event
any Borrower Reserve Payments are deposited into the Collection Account, such
Borrower Reserve Payments shall, upon written request of the Seller, be promptly
transferred from the Collection Account to the Operating Account for the Seller
to transfer into the appropriate escrow or reserve accounts.

         SECTION 2.9 PAYMENT, TRANSFER AND CUSTODY.

         (a) Unless otherwise expressly provided herein, all amounts to be paid
or deposited by the Seller hereunder shall be paid or deposited in accordance
with the terms hereof no later than 3:00 p.m. on the day when due in lawful
money of the United States, in immediately available funds and without
deduction, set-off or counterclaim to the Purchaser's Account and if not
received before such time shall be deemed to be received on the next Business
Day. The Seller shall, to the extent permitted by Applicable Law, pay to the
Purchaser interest on any amounts not paid when due hereunder or under the
Repurchase Documents at the Post Default Rate, payable on demand; provided,
however, that such interest rate shall not at any time exceed the maximum rate
permitted by Applicable Law. Such interest shall be for the account of, and
distributed to, the Purchaser. All computations of interest and all computations
of the Price Differential and other fees hereunder shall be made on the basis of
a year consisting of 360 days (other than calculations with respect to the Base
Rate which shall be based on a year consisting of 365 or 366 days, as
applicable) for the actual number of days (including the first but excluding the
last day) elapsed. The Seller acknowledges that it has no rights of withdrawal
from the foregoing Purchaser's Account or from the Collection Account.

         (b) Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of the payment of the Price Differential or any fee payable
hereunder, as the case may be.

         (c) If any Transaction requested by the Seller and approved by the
Purchaser, pursuant to Section 2.2, 2.3 or Section 2.6, is not, for any reason,
made or effectuated, as the case may be, on the date specified therefor, the
Seller shall indemnify the Purchaser against any reasonable loss, cost or
expense incurred by the Purchaser including, without limitation, any loss
(including loss of anticipated profits, net of anticipated profits, if any, in
the reemployment of such funds in the manner determined by the Purchaser in its
sole discretion), or reasonable cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by the Purchaser
to fund or maintain such Transaction.

         (d) On the Purchase Date for each Transaction, ownership of the
Purchased Assets shall be transferred to the Purchaser or its designee
(including the Custodian) against the simultaneous transfer of the Purchase
Price to the Seller not later than 3:00 p.m. simultaneously with the delivery to
the Custodian of the Purchased Assets relating to each Transaction in accordance
with and subject to the provisions of Subsection 2.2(h). The Seller hereby
sells, transfers, conveys and assigns to the Purchaser or its designee
(including the Custodian) all the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       35
<PAGE>

right, title and interest of the Seller in and to the Purchased Items together
with all right, title and interest in and to the proceeds of any related
Purchased Items.

         (e) In connection with such sale, transfer, conveyance and assignment,
(i) in the case of a Non-Table Funded Purchased Asset, on or prior to each
Purchase Date, and (ii) in the case of a Table Funded Purchased Asset, on or
prior to the date and time specified in Subsection 2.2(d), the Seller shall
deliver or cause to be delivered and released to the Purchaser or its designee
(including the Custodian) (x) the Custodial Identification Certificate and (y)
the documents identified in Section 3.1 of the Custodial Agreement.

         (f) Any Mortgage Asset Files not delivered to the Purchaser or its
designee (including the Custodian) are and shall be held in trust by the Seller
or its designee for the benefit of the Purchaser as the owner thereof. The
Seller or its designee shall maintain a copy of the Mortgage Asset File and the
originals of the Mortgage Asset File not delivered to the Purchaser or its
designee (including the Custodian). The possession of the Mortgage Asset File by
the Seller or its designee is at the will of the Purchaser for the sole purpose
of servicing the related Purchased Asset, and such retention and possession by
the Seller or its designee is in a custodial capacity only. Each Mortgage Asset
File retained or held by the Seller or its designee shall be segregated on the
Seller's books and records from the other assets of the Seller or its designee,
and the books and records of the Seller or its designee shall be marked
appropriately to reflect clearly the sale of the related Purchased Asset to the
Purchaser. The Seller or its designee shall release its custody of the Mortgage
Asset File only in accordance with written instructions from the Purchaser,
unless such release is required as incidental to the servicing of the Purchased
Assets or is in connection with a repurchase of any Purchased Asset by the
Seller.

         SECTION 2.10 DISPUTES REGARDING MARKET VALUE DETERMINATION.

         Subject to Section 2.7, if the Seller has a good faith basis to dispute
any determination of the Market Value by the Purchaser, the Seller may notify
the Purchaser of such dispute within three (3) Business Days after any such
determination thereof by Purchaser. The Seller may, at its sole cost and
expense, (A) if the dispute involves the appraised value of an Underlying
Mortgaged Property used by the Purchaser in determining the Market Value of a
Purchased Asset, within forty-five (45) calendar days of the date of the notice
to the Purchaser deliver a new FIRREA Appraisal of such Underlying Mortgaged
Property, in which case the appraised value set forth in such new FIRREA
Appraisal shall be used in lieu of the disputed appraised value in the
determining the Market Value of such Purchased Asset, and, (B) if the dispute
involves the price at which a Purchased Asset could readily be sold used by the
Purchaser in determining the Market Value of such Purchased Asset, within three
(3) Business Days (or, in the case of Mezzanine Loans, fifteen (15) calendar
days) of the date of the notice to the Purchaser deliver up to three (3) written
Alternative Market Price Quotes, in which case the average of the Alternative
Market Price Quotes on the one hand and the market price used by the Purchaser
on the other shall be used in lieu of the disputed market price in the
determination of the Market Value of such Purchased Asset. Notwithstanding
anything to the contrary herein, in the event that the Seller fails to timely
deliver to the Purchaser any notice of dispute within such three (3) Business
Day period or fails to deliver such appraisal within forty-five (45) calendar
days or such Alternative Market Price Quotes within such three (3) Business Days
(or, in the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       36
<PAGE>

case of Mezzanine Loans, fifteen (15) calendar days), respectively, the
Purchaser's determination of the Market Value shall be final and conclusive.

         SECTION 2.11 HYPOTHECATION OR PLEDGE OF PURCHASED ASSETS.

         Title to all Purchased Items shall pass to the Purchaser, and the
Purchaser shall have free and unrestricted use of all Purchased Assets and
Purchased Items. Nothing in this Agreement shall preclude the Purchaser from
engaging in repurchase transactions with the Purchased Items or otherwise
pledging, repledging, transferring, hypothecating, or rehypothecating the
Purchased Items, all on terms that the Purchaser may determine in its sole
discretion. Nothing contained in this Agreement shall obligate the Purchaser to
segregate any Purchased Items delivered to the Purchaser by the Seller.

         SECTION 2.12 FEES.

         (a) On or prior to the Closing Date, the Seller shall pay to the
Purchaser the Commitment Fee agreed to by the Seller and the Purchaser in the
Fee Letter.

         (b) To the extent not paid by the Seller under the Fee Letter, the
Pricing Differential and the Unused Fee shall be paid to the Purchaser from the
Collection Account to the extent funds are available on each Payment Date
pursuant to Section 2.8.

         (c) To the extent not paid by the Seller, the Custodian's fees and
expenses shall be paid to the Custodian from the Collection Account to the
extent funds are available on each Payment Date pursuant to Section 2.8.

         (d) The Seller shall pay to Moore & Van Allen PLLC, as counsel to the
Purchaser, on the Closing Date, its reasonable estimated fees and out-of-pocket
expenses in immediately available funds and shall pay all additional reasonable
fees and out-of-pocket expenses of Moore & Van Allen PLLC within ten (10) days
after receiving an invoice for such amounts.

         SECTION 2.13 INCREASED COSTS; CAPITAL ADEQUACY; ILLEGALITY.

         (a) If either (i) the introduction of or any change (including, without
limitation, any change by way of imposition or increase of reserve requirements)
in or in the interpretation of any law or regulation, or (ii) the compliance by
the Purchaser with any guideline or request from any central bank or other
Governmental Authority (whether or not having the force of law) shall (a)
subject the Purchaser to any Tax (except for Taxes on the overall net income of
the Purchaser), duty or other charge with respect to any ownership interest in
the Purchased Items, or any right to enter into Transactions hereunder, or on
any payment made hereunder, (b) impose, modify or deem applicable any reserve
requirement (including, without limitation, any reserve requirement imposed by
the Board of Governors of the Federal Reserve System, but excluding any reserve
requirement, if any, included in the determination of the Price Differential),
special deposit or similar requirement against assets of, deposits with or for
the amount of, or credit extended by, the Purchaser or (c) impose any other
condition affecting the ownership interest in the Purchased Items conveyed to
the Purchaser hereunder or the Purchaser's rights hereunder,

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       37
<PAGE>

the result of which is to increase the cost to the Purchaser or to reduce the
amount of any sum received or receivable by the Purchaser under this Agreement,
then within ten (10) days after demand by the Purchaser (which demand shall be
accompanied by a statement setting forth the basis for such demand), the Seller
shall pay directly to the Purchaser such additional amount or amounts as will
compensate the Purchaser for such additional or increased cost incurred or such
reduction suffered.

         (b) If either (i) the introduction of or any change in or in the
interpretation of any law, guideline, rule, regulation, directive or request or
(ii) compliance by the Purchaser with any law, guideline, rule, regulation,
directive or request from any central bank or other Governmental Authority or
agency (whether or not having the force of law), including, without limitation,
compliance by the Purchaser with any request or directive regarding capital
adequacy, has or would have the effect of reducing the rate of return on the
capital of the Purchaser as a consequence of its obligations hereunder or
arising in connection herewith to a level below that which the Purchaser could
have achieved but for such introduction, change or compliance (taking into
consideration the policies of the Purchaser with respect to capital adequacy) by
an amount deemed by the Purchaser to be material, then from time to time, within
ten (10) days after demand by the Purchaser (which demand shall be accompanied
by a statement setting forth the basis for such demand), the Seller shall pay
directly to the Purchaser such additional amount or amounts as will compensate
the Purchaser for such reduction. For the avoidance of doubt, any interpretation
of Accounting Research Bulletin No. 51 by the Financial Accounting Standards
Board shall constitute an adaptation, change, request or directive subject to
this Subsection 2.13(b).

         (c) If as a result of any event or circumstance similar to those
described in clause (a) or (b) of this Section 2.13, the Purchaser is required
to compensate a bank or other financial institution providing liquidity support,
credit enhancement or other similar support to the Purchaser in connection with
this Agreement or the funding or maintenance of Purchased Items hereunder, then
within ten (10) days after demand by the Purchaser, the Seller shall pay to the
Purchaser such additional amount or amounts as may be necessary to reimburse the
Purchaser for any amounts payable or paid by it.

         (d) In determining any amount provided for in this Section 2.13, the
Purchaser may use any reasonable averaging and attribution methods. The
Purchaser making a claim under this Section 2.13 shall submit to the Seller a
written description as to such additional or increased cost or reduction and the
calculation thereof, which written description shall be conclusive absent
demonstrable error.

         (e) If the Purchaser shall notify the Purchaser that a Eurodollar
Disruption Event as described in clause (a) of the definition of "Eurodollar
Disruption Event" has occurred, the Purchaser shall in turn so notify the
Seller, whereupon all Transactions in respect of which the Price Differential
accrues at the Adjusted Eurodollar Rate shall immediately be converted into
Transactions in respect of which the Price Differential accrues at the Base
Rate.

         (f) If, as a result of any event or circumstance described in clause
(a), (b) or (c) of this Section 2.13, the Seller is required to make payments to
the Purchaser, the Seller shall have

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       38
<PAGE>

the right to elect, by written notice to the Purchaser, to convert the Rate at
which the Price Differential accrues from the Eurodollar Rate to the Base Rate.

         SECTION 2.14 TAXES.

         (a) All payments made by a Borrower in respect of a Purchased Item and
all payments made by the Seller under this Agreement will be made free and clear
of and without deduction or withholding for or on account of any Taxes. If any
Taxes are required to be withheld from any amounts payable to the Purchaser,
then the amount payable to such Person will be increased (such increase, the
"Additional Amount") such that every net payment made under this Agreement after
withholding for or on account of any Taxes (including, without limitation, any
Taxes on such increase) is not less than the amount that would have been paid
had no such deduction or withholding been deducted or withheld. The foregoing
obligation to pay Additional Amounts, however, will not apply with respect to
net income or franchise taxes imposed on the Purchaser, with respect to payments
required to be made by the Seller under this Agreement, by a taxing jurisdiction
in which the Purchaser is organized, conducts business or is paying taxes (as
the case may be).

         (b) The Seller will indemnify the Purchaser for the full amount of
Taxes payable by such Person in respect of Additional Amounts and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. All payments in respect of this indemnification shall be made within
ten (10) days from the date a written invoice therefor is delivered to the
Seller.

         (c) Within thirty (30) days after the date of any payment by the Seller
of any Taxes, the Seller will furnish to the Purchaser, at its address set forth
under its name on the signature pages hereof, appropriate evidence of payment
thereof.

         (d) If the Purchaser is created or organized under the laws of the
United States or a political subdivision thereof, the Purchaser shall deliver to
the Seller, within fifteen (15) days after the date hereof, two (or such other
number as may from time to time be prescribed by Applicable Laws) duly completed
copies of IRS Form W-9 (or any successor forms of other certificates or
statements that may be required from time to time by the relevant United States
taxing authorities or Applicable Laws). If the Purchase is not created or
organized under the laws of the United States or a political subdivision
thereof, the Purchaser shall deliver to the Seller, (i) within fifteen (15) days
after the date hereof, two (or such other number as may from time to time be
prescribed by Applicable Laws) duly completed copies of IRS Form W-8BEN or Form
W-8ECI (or any successor forms or other certificates or statements that may be
required from time to time by the relevant United States taxing authorities or
Applicable Laws), as appropriate, to permit the Seller to make payments
hereunder for the account of the Purchaser without deduction or withholding of
United States federal income or similar Taxes, and (ii) upon the obsolescence
of, or after the occurrence of any event requiring a change in, any form or
certificate previously delivered pursuant to this Subsection 2.14(d), copies (in
such numbers as may from time to time be prescribed by Applicable Laws or
regulations) of such additional, amended or successor forms, certificates or
statements as may be required under Applicable

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       39
<PAGE>

Laws or regulations to permit the Seller to make payments hereunder for the
account of the Purchaser without deduction or withholding of United States
federal income or similar Taxes.

         (e) Without prejudice to the survival of any other agreement of the
Seller hereunder, the agreements and obligations of the Seller contained in
Section 2.13 and this Section 2.14 shall survive the termination of this
Agreement.

                                   ARTICLE III

                           CONDITIONS TO TRANSACTIONS

         SECTION 3.1 CONDITIONS TO CLOSING AND INITIAL PURCHASE.

         The Purchaser shall not be obligated to enter into any Transaction
hereunder nor shall the Purchaser be obligated to take, fulfill or perform any
other action hereunder until the following conditions have been satisfied, in
the sole discretion of, or waived in writing by, the Purchaser:

         (a) Each Repurchase Document shall have been duly executed by, and
delivered to, the parties thereto, and the Purchaser shall have received such
other documents, instruments, agreements and legal opinions as the Purchaser
shall reasonably request in connection with the Transactions contemplated by
this Agreement, each in form and substance satisfactory to the Purchaser;

         (b) The Purchaser shall have received (i) satisfactory evidence that
the Seller and the Guarantor have obtained all required consents and approvals
of all Persons, including all requisite Governmental Authorities, to the
execution, delivery and performance of this Agreement and the other Repurchase
Documents to which each is a party and the consummation of the transactions
contemplated hereby or thereby or (ii) an Officer's Certificate from each of the
Seller and the Guarantor in form and substance reasonably satisfactory to the
Purchaser affirming that no such consents or approvals are required; it being
understood that the acceptance of such evidence or Officer's Certificate shall
in no way limit the recourse of the Purchaser against the Seller or the
Guarantor for a breach of the Seller's or the Guarantor's representation or
warranty that all such consents and approvals have, in fact, been obtained;

         (c) The Seller, the Guarantor and the Pledgor shall each be in
compliance in all material respects with all Applicable Laws and Contractual
Obligations and shall have delivered to the Purchaser as to this and other
closing matters certification in the form of Exhibit I-1, I-2 and I-3,
respectively;

         (d) The Seller shall have delivered to the Purchaser a duly executed
Power of Attorney in the form of Exhibit III;

         (e) The Seller and the Pledgor shall have delivered to the Purchaser a
perfection certificate in the form of Exhibit VI-1 and VI-2, respectively;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       40
<PAGE>

         (f) Any and all consents and waivers applicable to the Seller, the
Guarantor or to the Purchased Items shall have been obtained;

         (g) The UCC Financing Statements described in Subsection 4.1(n)(v)
shall have been filed in the appropriate filing offices;

         (h) The Purchaser shall be in receipt of such Opinions of Counsel from
the counsel to the Seller, the Guarantor and the Custodian as the Purchaser may
require, each in form and substance satisfactory to the Purchaser in its sole
discretion, including, without limitation, corporate opinions and perfection
opinions (filing and possession);

         (i) The Purchaser shall be in receipt of a good standing certificate
and certified copies of the Governing Documents and applicable resolutions of
the Seller, the Guarantor and the Custodian evidencing the corporate or other
authority for the Seller, the Guarantor and the Custodian with respect to the
execution, delivery and performance of the Repurchase Documents and each of the
other documents to be delivered by the Seller, the Guarantor and the Custodian
from time to time in connection herewith;

         (j) The Purchaser shall be in receipt of the Servicing Agreements, the
Pooling and Servicing Agreements (if any) and Purchase Agreements, certified as
true, correct and complete copies of the originals, together with the Servicer
Notices, fully executed by the Seller and Servicer;

         (k) The Purchaser shall be in receipt of a Certified copy of each
Pooling and Servicing Agreement in effect for any Eligible Asset;

         (l) The Purchaser shall have received payment from the Seller of the
Commitment Fee and the amount of actual costs and expenses, including, without
limitation, the fees and expenses of counsel to the Purchaser as contemplated by
Section 13.9, incurred by the Purchaser in connection with the development,
preparation and execution of this Agreement, the other Repurchase Documents and
any other documents prepared in connection herewith or therewith;

         (m) The Purchaser shall have completed to its satisfaction such due
diligence as it may require in its sole and absolute discretion; and

         (n) The Purchaser shall have received all such other and further
documents, certifications, reports, approvals and legal opinions as the
Purchaser may reasonably require.

         SECTION 3.2 CONDITIONS PRECEDENT TO ALL TRANSACTIONS.

         The Purchaser's agreement to enter into each Transaction (including the
initial Transaction) is subject to the satisfaction of the following further
conditions precedent, both immediately prior to entering into such Transaction
and also after giving effect to the consummation thereof and the intended use of
the proceeds of the sale:

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       41
<PAGE>

         (a) no Applicable Law shall prohibit or render it unlawful, and no
order, judgment or decree of Governmental Authority shall prohibit, enjoin or
render it unlawful, to enter into such Transaction by the Purchaser in
accordance with the provisions hereof or any other transaction contemplated
herein;

         (b) the Seller, the Guarantor, the Pledgor and each Servicer and PSA
Servicer shall have delivered to the Purchaser all reports and other information
required to be delivered as of the date of such Transaction;

         (c) the Seller shall have delivered a Confirmation, via Electronic
Transmission, in accordance with the procedures set forth in Section 2.2, and
the Purchaser shall have determined that the Mortgage Asset described in such
Confirmation is an Eligible Asset, shall have approved the purchase of the
Mortgage Asset to be included in such Transaction in its sole and absolute
discretion and shall have obtained all necessary internal credit and other
approvals for such Transaction;

         (d) no Unmatured Termination Event or Termination Event shall have
occurred and be continuing;

         (e) the Purchaser shall have received a Compliance Certificate in the
form of Exhibit X attached hereto ("Compliance Certificate") from a Responsible
Officer of the Seller and Guarantor that, among other things: (i) shows in
detail the calculations demonstrating that, after giving effect to the requested
Transaction, the aggregate Purchase Price of the Transactions outstanding shall
not exceed the Maximum Amount, (ii) the Seller and the Guarantor have observed
or performed all of their covenants and other agreements, and satisfied every
condition, contained in this Agreement, the Repurchase Documents and the related
documents to be observed, performed or satisfied by them, and that such
Responsible Officer has obtained no knowledge of any Unmatured Termination Event
or Termination Event except as specified in such certificate, (iii) states that
all representations and warranties contained in this Agreement are true and
correct on and as of such day as though made on and as of such day and shall be
deemed to be made on such day, and (iv) the Guarantor is in compliance with the
Financial Covenants;

         (f) after giving effect to the requested Transaction, the aggregate
outstanding Purchase Price of the Transactions outstanding shall not exceed the
Asset Value of all the Purchased Assets subject to outstanding Transactions or
the Maximum Amount;

         (g) subject to the Purchaser's right to perform one or more Due
Diligence Reviews pursuant to Section 13.21, the Purchaser shall have completed
in accordance with Section 2.2 its due diligence review of the Mortgage Asset
File and the Underwriting Package for each Purchased Asset and such other
documents, records, agreements, instruments, mortgaged properties or information
relating to such Mortgage Asset as the Purchaser in its sole discretion deems
appropriate to review and such review shall be satisfactory to the Purchaser in
its sole discretion;

         (h) with respect to any Eligible Asset to be purchased hereunder on the
related Purchase Date that is not serviced by the Seller, the Seller shall have
provided to the Purchaser

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       42
<PAGE>

copies of the related Servicing Agreements and the Pooling and Servicing
Agreements, certified as true, correct and complete copies of the originals,
together with Servicer Notices fully executed by the Seller and the Servicer;

         (i) the Purchaser shall have received all fees and expenses of the
Purchaser and counsel to the Purchaser as contemplated by Section 13.9 and the
Fee Letter and, to the extent the Seller is required hereunder to reimburse the
Purchaser for such amounts the Purchaser shall have received the reasonable
costs and expenses incurred by them in connection with the entering into of any
Transaction hereunder, including, without limitation, costs associated with due
diligence recording or other administrative expenses necessary or incidental to
the execution of any Transaction hereunder, which amounts, at the Purchaser's
option, may be withheld from the sale proceeds of any Transaction hereunder;

         (j) none of the following shall have occurred and/or be continuing:

                  (i)      an event or events shall have occurred in the good
         faith determination of the Purchaser resulting in the effective absence
         of a "repo market" or related "lending market" for purchasing (subject
         to repurchase) or financing debt obligations secured by commercial
         mortgage loans or securities, or an event or events shall have occurred
         resulting in the Purchaser not being able to finance Mortgage Assets
         through the "repo market" or "lending market" with traditional
         counterparties at rates that would have been reasonable prior to the
         occurrence of such event or events;

                  (ii)     an event or events shall have occurred resulting in
         the effective absence of a "securities market" for securities backed by
         Mortgage Assets, or an event or events shall have occurred resulting in
         the Purchaser not being able to sell securities backed by Mortgage
         Assets at prices that would have been reasonable prior to such event or
         events; or

                  (iii)    there shall have occurred a material adverse change
         in the financial condition of the Purchaser that affects (or can
         reasonably be expected to affect) materially and adversely the ability
         of the Purchaser to fund its obligations under this Agreement.

         (k) for each Non-Table Funded Purchased Asset, the Purchaser shall have
received from the Custodian on each Purchase Date a Trust Receipt and an Asset
Schedule and Exception Report with respect to each Eligible Asset, each dated
the Purchase Date, duly completed and, in the case of the Asset Schedule and
Exception Report, with exceptions acceptable to the Purchaser in its sole
discretion in respect of Eligible Assets to be purchased hereunder on such
Business Day. In the case of a Table Funded Purchased Asset, the Purchaser shall
have received on the related Purchase Date the Table Funded Trust Receipt and
all other items described in the second (2nd) sentence of Subsection 2.2(h),
each in form and substance satisfactory to the Purchaser in its sole discretion,
provided that the Purchaser subsequently receives the items described in
Subsections 2.2(d) and (h) and the other delivery requirements under the
Custodial Agreement on or before the date and time specified herein and therein,
which items shall be in form and substance satisfactory to the Purchaser in its
sole discretion;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       43
<PAGE>

         (l) the Purchaser shall have received from the Seller a Warehouse
Lender's Release Letter substantially in the form of Exhibit VII-B hereto (or
such other form acceptable to the Purchaser) ("Warehouse Lender's Release
Letter"), if applicable, or a Seller's Release Letter substantially in the form
of Exhibit VII-A hereto (or such other form acceptable to the Purchaser)
("Seller's Release Letter") covering each Eligible Asset to be sold to the
Purchaser;

         (m) prior to the purchase of any Eligible Asset acquired (by purchase
or otherwise) by the Seller from any Affiliate of the Seller, the Purchaser
shall have received certified copies of the applicable Purchase Agreements and a
True Sale Opinion;

         (n) the Purchase Price specified in a Confirmation for a Transaction
shall not be less than $1,000,000;

         (o) on and as of such day, the Seller, the Guarantor and the Custodian
shall have performed all of the covenants and agreements contained in the
Repurchase Documents to be performed by such Person at or prior to such day;

         (p) the Repurchase Date for such Transaction is not later than the
Facility Maturity Date;

         (q) the Purchaser shall have received evidence satisfactory to the
Purchaser that the Seller has delivered an irrevocable instruction to each
Servicer or PSA Servicer under a Pooling and Servicing Agreement, as applicable,
to pay Income with respect to the Purchased Items directly to the Collection
Account as provided herein, which instructions may not be modified without the
prior written consent of the Purchaser;

         (r) both immediately prior to the requested Transaction and also after
giving effect thereto and to the intended use thereof, the representations and
warranties made by the Seller and the Guarantor in Section 4.1 shall be true,
correct and complete on and as of such Purchase Date in all material respects
with the same force and effect as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made only as of
a specific date, as of such specific date);

         (s) the Purchaser shall be in receipt of the evidence of insurance
required by Section 9.1 of the Custodial Agreement;

         (t) the Seller shall have delivered any other opinion or closing item
required by Section 3.1 that was not delivered on the Closing Date (including,
without limitation, the filing of UCC financing statements against the Seller
and the Pledgor, an opinion regarding perfection by possession, perfection by
filing and other matters delivered on behalf of the Seller and acceptable to the
Purchaser in its discretion, the Guarantor's resolution duly executed, an
opinion on behalf of the Guarantor acceptable to the Purchaser in its
discretion, a fully executed Servicing Agreement and the establishment of the
Collection Account);

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                      44
<PAGE>

         (u) a certification of good standing for the Seller for the Seller in
each jurisdiction where the Mortgaged Property is located;

         (v) other conditions to such Purchase set forth in this Agreement or
the Custodial Agreement are satisfied; and

         (w) to the extent applicable, the Seller shall have delivered the
opinions required by Section 3.3; and

         (x) the Purchaser shall have received all such other and further
documents, reports, certifications, approvals and legal opinions as the
Purchaser in its sole discretion shall reasonably require.

         Each Confirmation delivered by the Seller hereunder shall constitute a
certification by the Seller that all the conditions set forth in Section 3.1 and
this Section 3.2 have been satisfied (both as of the date of such notice or
request and as of the date of such purchase).

         The failure of the Seller or Guarantor, as applicable, to satisfy any
of the foregoing conditions precedent in respect of any Transaction shall,
unless such failure was expressly waived in writing by the Purchaser on or prior
to the related Purchase Date, give rise to a right of the Purchaser, which right
may be exercised at any time on the demand of the Purchaser, to rescind the
related Transaction and direct the Seller to pay to the Purchaser for the
benefit of the Purchaser an amount equal to the Purchase Price, the Price
Differential, Breakage Costs and other amounts due in connection therewith
during any such time that any of the foregoing conditions precedent were not
satisfied.

         SECTION 3.3 ADDITIONAL OPINIONS.

         To the extent required by any Rating Agency at any time, the Seller
shall (i) amend its Governing Documents to require two (2) Independent Directors
and add any other provision that may be required by any such Rating Agency in
its sole and absolute discretion or by the Purchaser in its reasonable
discretion, (ii) provide to the Purchaser a non-consolidation opinion regarding
the Seller, the Pledgor and the Guarantor, which opinion shall be satisfactory
to the Purchaser in its reasonable discretion and the Rating Agencies in their
sole and absolute discretion, (iii) provide the Purchaser with one (1) or more
legal opinions addressing the single-member limited liability company structure
of the Seller, which opinions shall be satisfactory to the Purchaser in its
reasonable discretion and the Rating Agencies in their sole and absolute
discretion, and (iv) any additional opinions or requirements that any Rating
Agency may require, which opinions shall be satisfactory to the Purchaser in its
reasonable discretion and the Rating Agencies in their sole and absolute
discretion.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       45
<PAGE>

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.1 REPRESENTATIONS AND WARRANTIES OF THE SELLER.

         Each of the Seller and the Guarantor represents and warrants, as of the
date of this Agreement and any Transaction hereunder and at all times while any
Repurchase Document and any Transaction hereunder is in full force and effect,
as follows:

         (a) Organization and Good Standing. Each of the Seller's and the
Guarantor's exact legal name is set forth on the signature pages to this
Agreement. The Seller has been duly organized, and is validly existing as a
limited liability company in good standing, under the laws of the State of
Delaware, with all requisite limited liability company power and authority to
own or lease its Properties and conduct its business as such business is
presently conducted, and had, at all relevant times, and now has, all necessary
power, authority and legal right to acquire, own and sell the Purchased Items.
The Guarantor has been duly organized, and is validly existing as a corporation
in good standing, under the laws of the State of Maryland, with all requisite
corporate power and authority to own or lease its Properties and conduct its
business as such business is presently conducted.

         (b) Due Qualification. Each of the Seller and the Guarantor is duly
qualified to do business and is in good standing as a limited liability company
and corporation, respectively, and has obtained all necessary licenses and
approvals, in all jurisdictions in which the ownership or lease of Property or
the conduct of its business requires such qualification, licenses or approvals.

         (c) Power and Authority; Due Authorization; Execution and Delivery.
Each of the Seller and the Guarantor (i) has all necessary power, authority and
legal right (A) to execute and deliver the Repurchase Documents to which it is a
party, (B) to carry out the terms of the Repurchase Documents to which it is a
party, (C) with respect to the Seller, to sell and assign an ownership interest
in the Purchased Items, and (D) with respect to the Seller, to sell the
Purchased Items on the terms and conditions provided herein, and (ii) has duly
authorized by all necessary corporate action (A) the execution, delivery and
performance of the Repurchase Documents to which it is a party, and (B) with
respect to the Seller, the sale and assignment of an ownership interest in the
Purchased Items on the terms and conditions herein provided. The Repurchase
Documents to which each of the Seller and the Guarantor is a party have been
duly executed and delivered by the Seller and the Guarantor, as applicable.

         (d) Binding Obligation. Each of the Repurchase Documents to which each
of the Seller and the Guarantor is a party constitutes a legal, valid and
binding obligation of the Seller and the Guarantor, as applicable, enforceable
against the Seller and the Guarantor in accordance with its respective terms,
except as such enforceability may be limited by Insolvency Laws and by general
principles of equity (whether considered in a suit at law or in equity).

         (e) No Violation. The consummation of the transactions contemplated by
the Repurchase Documents to which each of the Seller and the Guarantor is a
party and the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       46
<PAGE>

fulfillment of the terms hereof and thereof will not (i) conflict with, result
in any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time or both) a default under, the Seller's or the
Guarantor's, as applicable, Governing Documents or any material Contractual
Obligation of the Seller or the Guarantor, as applicable, (ii) result in the
creation or imposition of any Lien (other than Permitted Liens) upon any of the
Seller's or the Guarantor's, Properties pursuant to the terms of any such
Contractual Obligation, other than this Agreement, or (iii) violate any
Applicable Law.

         (f) No Proceedings. There is no material litigation, proceeding or
investigation pending or, to the best knowledge of each of the Seller or the
Guarantor, threatened against the Seller or the Guarantor, before any
Governmental Authority (i) asserting the invalidity of the Repurchase Documents
to which each of the Seller and the Guarantor is a party, (ii) seeking to
prevent the consummation of any of the transactions contemplated by the
Repurchase Documents to which each of the Seller and the Guarantor is a party,
or (iii) seeking any determination or ruling that could reasonably be expected
to have Material Adverse Effect.

         (g) All Consents Required. All approvals, authorizations, consents,
orders or other actions of any Person or of any Governmental Authority (if any)
required for the due execution, delivery and performance by the Seller and the
Guarantor of the Repurchase Documents to which each of the Seller and the
Guarantor is a party (including the transfer of and the grant of a security
interest in the Purchased Items) have been obtained, effected or given and are
in full force and effect.

         (h) Bulk Sales. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not require compliance
with any "bulk sales" act or similar law by the Seller or the Guarantor.

         (i) Solvency. Neither the Seller nor the Guarantor is the subject of
any Insolvency Proceedings or Insolvency Event. The Transactions under this
Agreement and any other Repurchase Document to which each of the Seller and the
Guarantor is a party do not and will not render the Seller or the Guarantor not
Solvent.

         (j) Selection Procedures. No procedures believed by the Seller or the
Guarantor to be adverse to the interests of the Purchaser were utilized by the
Seller or the Guarantor in identifying and/or selecting the Purchased Assets. In
addition, each Purchased Asset shall have been underwritten in accordance with
and satisfy any applicable standards that have been established by the Seller,
the Guarantor and any of their Affiliates and are then in effect.

         (k) Taxes. Each of the Seller and the Guarantor has filed or caused to
be filed all tax returns that are required to be filed by it. Each of the Seller
and the Guarantor has paid or made adequate provisions for the payment of all
Taxes and all assessments made against it or any of its Property (other than any
amount of Tax the validity of which is currently being contested in good faith
by appropriate proceedings and with respect to which reserves in accordance with
GAAP have been provided on the books of the Seller), and no tax Lien has been
filed and, to each of the Seller's and the Guarantor's knowledge, no claim is
being asserted, with respect to any such Tax, fee or other charge.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       47
<PAGE>

         (l) Exchange Act Compliance; Regulations T, U and X. None of the
transactions contemplated herein (including, without limitation, the use of the
proceeds from the sale of the Purchased Items) will violate or result in a
violation of Section 7 of the Exchange Act, or any regulations issued pursuant
thereto, including, without limitation, Regulations T, U and X. Neither the
Seller nor the Guarantor owns or intends to carry or purchase, and no proceeds
from the Transactions will be used to carry or purchase, any "margin stock"
within the meaning of Regulation U or to extend "purpose credit" within the
meaning of Regulation U.

         (m) Environmental Matters.

                  (i)      No Properties owned or leased by the Seller or the
         Guarantor and, to the knowledge of each of the Seller and the
         Guarantor, no Properties formerly owned or leased by the Seller or the
         Guarantor, or any Subsidiaries thereof, contain, or have previously
         contained, any Materials of Environmental Concern in amounts or
         concentrations that constitute or constituted a violation of, or
         reasonably could be expected to give rise to liability under,
         Environmental Laws;

                  (ii)     Each of the Seller and the Guarantor is in
         compliance, and has in the last five (5) years (or such shorter period
         as the Seller and/or the Guarantor shall have been in existence) been
         in compliance, with all applicable Environmental Laws, and, to the
         knowledge of the Seller and the Guarantor, there is no violation of any
         Environmental Laws that reasonably could be expected to interfere with
         the continued operations of the Seller or the Guarantor;

                  (iii)    Neither the Seller nor the Guarantor has received any
         notice of violation, alleged violation, non-compliance, liability or
         potential liability under any Environmental Law, nor does the Seller or
         the Guarantor have knowledge that any such notice will be received or
         is being threatened;

                  (iv)     Materials of Environmental Concern have not been
         transported or disposed of by the Seller or the Guarantor in violation
         of, or in a manner or to a location that reasonably could be expected
         to give rise to liability under, any applicable Environmental Law, nor
         has any of them generated, treated, stored or disposed of at, on or
         under any of the Properties in violation of, or in a manner that
         reasonably could be expected to give rise to liability under, any
         applicable Environmental Law;

                  (v)      No judicial proceedings or governmental or
         administrative action is pending, or, to the knowledge of each of the
         Seller and the Guarantor, threatened, under any Environmental Law to
         which Seller or the Guarantor is or will be named as a party, nor are
         there any consent decrees or other decrees, consent orders,
         administrative orders or other orders, or other administrative or
         judicial requirements arising out of judicial proceedings or
         governmental or administrative actions, outstanding under any
         Environmental Law to which the Seller or the Guarantor is a party;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       48
<PAGE>

                  (vi)     There has been no release or, to the best knowledge
         of each of the Seller and the Guarantor, threat of release of Materials
         of Environmental Concern in violation of or in amounts or in a manner
         that reasonably could be expected to give rise to liability under any
         Environmental Law for which the Seller or the Guarantor may become
         liable; and

                  (vii)    To the best knowledge of each of the Seller and the
         Guarantor, each of the representations and warranties set forth in the
         preceding clauses (i) through (vi) is true and correct with respect to
         each parcel of real property owned or operated by the Seller and the
         Guarantor.

         (n) Security Interest.

                  (i)      This Agreement and the applicable Transfer Documents
         constitute a valid transfer to the Purchaser of all right, title and
         interest of the Seller in, to and under all Purchased Items, free and
         clear of any Lien of any Person claiming through or under the Seller,
         the Guarantor or any of their Affiliates, except for Permitted Liens
         and the Seller's repurchase rights described in Article II, and is
         enforceable against creditors of and purchasers from the Seller. If the
         conveyances contemplated by this Agreement are determined to be
         transfers for security, then this Agreement constitutes a grant of a
         security interest in all Purchased Items to the Purchaser, that, upon
         the delivery of the Transfer Documents and Mortgage Asset Files to the
         Custodian and the filing of the financing statements described in
         Subsection 4.1(n)(v), shall be a first priority perfected security
         interest in all Purchased Items to the extent such Purchased Items can
         be perfected by possession or by filing, subject only to Permitted
         Liens. Neither the Seller nor any Person claiming through or under the
         Seller shall have any claim to or interest in the Collection Account,
         except for the interest of the Seller in such property as a debtor for
         purposes of the UCC;

                  (ii)     The Purchased Items constitute either a "general
         intangible," an "instrument," an "account," "investment property," a
         "security," a "deposit account" and/or "chattel paper" within the
         meaning of the applicable UCC;

                  (iii)    Other than the Lien and transfers contemplated
         hereunder, the Seller has not sold, assigned, pledged, encumbered or
         otherwise conveyed any of the Purchased Items to any Person, and,
         immediately prior to the sale to the Purchaser, the Seller was the sole
         owner of such Purchased Items, and the Seller owns and has good and
         marketable title to the Purchased Items free and clear of any Lien
         (other than Permitted Liens);

                  (iv)     The Seller has received all consents and approvals,
         if any, required by the terms of any Purchased Items to the sale and
         granting of a security interest in the Purchased Items hereunder to the
         Purchaser;

                  (v)      Upon the filing of the UCC Financing Statements
         describing the Purchased Items, in the jurisdictions and recording
         offices listed on Schedule 7 attached hereto, the security interests
         granted hereunder in the Purchased Items shall constitute

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       49
<PAGE>

         fully perfected first priority security interests under the Uniform
         Commercial Code in all right, title and interest of the Seller in, to
         and under such Purchased Items that can be perfected by filing under
         the UCC;

                  (vi)     Upon execution and delivery of the Account Agreement,
         the Purchaser shall either be the owner of, or have a valid and fully
         perfected first priority security interest in, the Collection Account
         and the deposits and investment property therein;

                  (vii)    The Seller has not authorized the filing of and is
         not aware of any financing statements against the Seller that include a
         description of collateral covering the Purchased Items other than any
         financing statement (A) relating to the security interests granted to
         the Seller under the Purchase Agreements (if any), (B) that has been
         terminated, or (C) pursuant hereto. The Seller is not aware of the
         filing of any judgment or tax Lien filings against the Seller;

                  (viii)   Upon receipt by Custodian of each Mortgage Note,
         Mezzanine Note or Junior Interest Note, as applicable, endorsed in
         blank by a duly authorized officer of the Seller and payment by the
         Purchaser of the applicable Purchase Price, either a purchase shall
         have been completed by the Purchaser of each Mortgage Note or Junior
         Interest Note, as applicable, or the Purchaser shall have a valid and
         fully perfected first priority security interest in each Mortgage Note
         or Junior Interest Note, as applicable;

                  (ix)     All original Mortgage Notes, Mezzanine Notes and
         Junior Interest Notes have been, or, subject to the delivery
         requirements contained herein, will be delivered to the Custodian; and

                  (x)      None of the Mortgage Notes, Mezzanine Notes or Junior
         Interest Notes has any marks or notations indicating that they have
         been pledged, assigned or otherwise conveyed to any Person other than
         the Purchaser.

         (o) Location of Offices. The Seller's location (within the meaning of
Article 9 of the UCC) is 333 Earle Ovington Boulevard, Uniondale, New York
11553. The office where the Seller keeps all the records (within the meaning of
Article 9 of the UCC) is at the address of the Seller referred to in Section
13.2 hereof (or at such other locations as to which the notice and other
requirements specified in Subsection 5.1(n) shall have been satisfied). The
Seller's organizational identification number is 3739319. The Seller has not
changed its name, whether by amendment of its certificate of incorporation, by
reorganization or otherwise, and has not changed its location within the four
(4) months preceding the Closing Date.

         (p) Tradenames. The Seller has no trade names, fictitious names,
assumed names or "doing business as" names or other names under which it has
done or is doing business.

         (q) Value Given. The Seller shall have given reasonably equivalent
value to each Transferor in consideration for the transfer to the Seller of the
Purchased Items under the applicable Purchase Agreement, no such transfer shall
have been made for or on account of an

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       50
<PAGE>

antecedent debt owed by the Transferor thereunder to the Seller, and no such
transfer is or may be voidable or subject to avoidance under any section of the
Bankruptcy Code.

         (r) [RESERVED].

         (s) Compliance with Anti-Money Laundering Laws. Each of the Seller and
the Guarantor has complied with all applicable anti-money laundering laws and
regulations, including, without limitation, the USA Patriot Act of 2001
(collectively, the "Anti-Money Laundering Laws"). To the extent applicable, each
of the Seller and the Guarantor has established an adequate anti-money
laundering compliance program as required by the Anti-Money Laundering Laws, has
conducted the requisite due diligence in connection with the origination or
acquisition of each Mortgage Asset for purposes of the Anti-Money Laundering
Laws, including with respect to the legitimacy of the applicable Borrower and
the origin of the assets used by the said Borrower to purchase the property in
question, and maintains, and will maintain, sufficient information to identify
the applicable Borrower for purposes of the Anti-Money Laundering Laws. To the
knowledge of the Seller and the Guarantor, no Mortgage Asset is subject to
nullification pursuant to Executive Order 13224 (the "Executive Order") or the
regulations promulgated by the Office of Foreign Assets Control of the United
States Department of the Treasury (the "OFAC Regulations") or in violation of
the Executive Order or the OFAC Regulations, and no Borrower is subject to the
provisions of such Executive Order or the OFAC Regulations nor listed as a
"blocked person" for purposes of the OFAC Regulations.

         (t) Investment Company Act. Neither the Seller nor the Guarantor is,
and neither is controlled by, an "investment company" within the meaning of the
40 Act, as amended, or is exempt from the provisions of the 40 Act.

         (u) ERISA. The Seller, the Guarantor and each ERISA Affiliate have made
all required contributions to each Benefit Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Benefit Plan. Neither the Seller, the Guarantor nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219 of ERISA,
would result in such liability) under Sections 4201 or 4243 of ERISA with
respect to a Multiemployer Plan, nor has there been a complete or partial
withdrawal by the Seller, the Guarantor or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization. The present value of all benefits vested under all "employee
pension benefit plans," as such term is defined in Section 3(2) of ERISA,
maintained by each of the Seller and the Guarantor, or in which employees of the
Seller or the Guarantor are entitled to participate, as from time to time in
effect (herein called the "Pension Plans"), does not exceed the value of the
assets of the Pension Plan allocable to such vested benefits (based on the value
of such assets as of the last annual valuation date). No prohibited
transactions, accumulated funding deficiencies, withdrawals or reportable events
have occurred with respect to any Pension Plans that, in the aggregate, could
subject the Seller or the Guarantor to any material tax, penalty or other
liability. No Lien in favor of the PBGC or a Pension Plan has arisen or is
likely to arise on account of any Pension Plan. No notice of intent to terminate
a Pension Plan under Section 4041(b) of ERISA has been filed, nor has any
Pension Plan been

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       51
<PAGE>

terminated under Section 4041(c) of ERISA, nor has the PBGC instituted
proceedings to terminate or appoint a trustee to administer a Pension Plan, and
no event has occurred or condition exists that might constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan.

         (v) PUHCA. Neither the Seller nor the Guarantor is a "holding company"
or a "subsidiary holding company" of a "holding company" within the meaning of
the Public Utility Holding Company Act of 1935, as amended, or any successor
statute.

         (w) Compliance with Law. Each of the Seller and the Guarantor has
complied in all respects with all Applicable Laws to which it may be subject,
and no Purchased Item contravenes any Applicable Laws (including, without
limitation, laws, rules and regulations relating to licensing, truth in lending,
fair credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy).

         (x) Income. The Seller acknowledges that all Income received by it or
its Affiliates and the Servicers or PSA Servicer with respect to the Purchased
Items sold hereunder are held and shall be held for the benefit of the Purchaser
until deposited into the Collection Account as required herein.

         (y) Set-Off, etc. No Purchased Item has been compromised, adjusted,
extended, satisfied, subordinated, rescinded, set-off or modified by the Seller,
the Transferor or the Borrower thereof, and no Purchased Item is subject to
compromise, adjustment, extension (except as set forth in the related Mortgage
Asset File), satisfaction, subordination, rescission, set-off, counterclaim,
defense, abatement, suspension, deferment, deduction, reduction, termination or
modification, whether arising out of transactions concerning the Purchased Item
or otherwise, by the Seller, the Transferor or the Borrower with respect
thereto, except for amendments to such Purchased Assets otherwise permitted
under Section 6.10 of this Agreement.

         (z) Full Payment. Neither the Seller nor the Guarantor has knowledge of
any fact that should lead it to expect that any Purchased Asset will not be paid
in full.

         (aa) [RESERVED].

         (bb) Assignments. The Assignments do not violate any provisions of the
underlying Mortgage Asset Files or Mortgage Loan Documents, such documents do
not contain any express or implied prohibitions on sales or assignments of such
Purchased Assets, and such agreements are valid, binding and enforceable against
the Seller.

         (cc) Eligibility of Purchased Assets. With respect to each Purchased
Asset, each representation and warranty on Schedule 1 is true and correct.

         (dd) Acting as Principal. The Seller will engage in such Transactions
as principal, or, if agreed in writing in advance of any Transaction by the
other party hereto, as agent for a disclosed principal.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       52
<PAGE>

         (ee) No Broker. The Seller has not dealt with any broker, investment
banker, agent, or other Person, except for the Purchaser (or an Affiliate of the
Purchaser), who may be entitled to any commission or compensation in connection
with the sale of Purchased Assets pursuant to this Agreement.

         (ff) Ability to Perform. Neither the Seller nor the Guarantor believes,
nor does either have any reason or cause to believe, that it cannot perform each
and every agreement and covenant contained in the Repurchase Documents
applicable to it to which it is a party.

         (gg) No Unmatured Termination Event. No Unmatured Termination Event or
Termination Event has occurred and is continuing hereunder.

         (hh) Financial Condition.

                  (i)      The consolidated balance sheet of the Guarantor and
         its consolidated Subsidiaries provided to the Purchaser and the related
         consolidated statements of income and retained earnings and of cash
         flows, copies of which have heretofore been furnished to the Purchaser,
         are complete and correct and present fairly the consolidated financial
         condition of the Guarantor and its consolidated Subsidiaries as at such
         date, and the consolidated results of their operations and their
         consolidated cash flows as of the date of such financial statements and
         other information. All such financial statements, including the related
         schedules and notes thereto (if any), have been prepared in accordance
         with GAAP applied consistently throughout the periods involved (except
         as disclosed therein). Except as set forth on Schedule 6 attached
         hereto, neither the Guarantor nor any of its consolidated Subsidiaries
         had, at the date of the most recent balance sheet referred to above,
         any material contingent liability or liability for taxes, or any long
         term lease or unusual forward or long term commitment, including,
         without limitation, any interest rate or foreign currency swap or
         exchange transaction or other financial derivative, that is not
         reflected in the foregoing statements or in the notes thereto. During
         the period from the date of the financial statements and other
         financial information delivered to the Purchaser, to and including the
         date hereof, there has been no sale, transfer or other disposition by
         the Guarantor or any of its consolidated Subsidiaries of any material
         part of its business or property and no purchase or other acquisition
         of any business or property (including any Capital Stock of any other
         Person) material in relation to the consolidated financial condition of
         the Guarantor and its consolidated Subsidiaries on the date hereof.

                  (ii)     The operating forecast and cash flow projections of
         the Guarantor and its consolidated Subsidiaries, copies of which have
         heretofore been furnished to the Purchaser, have been prepared in good
         faith under the direction of a Responsible Officer of the Guarantor and
         in accordance with GAAP. The Guarantor has no reason to believe that as
         of the date of delivery thereof such operating forecast and cash flow
         projections are materially incorrect or misleading in any material
         respect or omit to state any material fact which would render them
         misleading in any material respect. The Guarantor shall

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       53
<PAGE>

         not be required to provide information in its projections if the
         disclosure of such information would violate Applicable Laws relating
         to insider trading.

         (ii) Servicing Agreements. The Seller has delivered to the Purchaser
all Servicing Agreements and all Pooling and Servicing Agreements with respect
to the Purchased Assets, and, to the best of the Seller's knowledge, no material
default or event of default exists thereunder.

         (jj) Existing Financing Facilities. All credit facilities, repurchase
facilities or substantially similar facilities of the Seller and the Guarantor
that are presently in effect are listed under the definition of "Existing
Financing Facilities." To the Seller's and the Guarantor's knowledge, no
material defaults or events of default exist thereunder.

         (kk) [RESERVED].

         (ll) True and Complete Disclosure. To the Seller's and the Guarantor's
actual knowledge, the information, reports, certificates, documents, financial
statements, books, records, files, exhibits and schedules furnished in writing
by or on behalf of each of the Seller and the Guarantor to the Purchaser in
connection with the negotiation, preparation or delivery of this Agreement and
the other Repurchase Documents or included herein or therein or delivered
pursuant hereto or thereto, when taken as a whole, do not contain any untrue
statement of material fact or omit to state any material fact necessary to make
the statements herein or therein, in light of the circumstances under which they
were made, not misleading. All written information furnished after the date
hereof by or on behalf of each of the Seller and the Guarantor to the Purchaser
in connection with this Agreement and the other Repurchase Documents and the
transactions contemplated hereby and thereby will be true, complete and accurate
in every material respect, or (in the case of projections) based on reasonable
estimates, on the date as of which such information is stated or certified.
There is no fact known to a Responsible Officer of the Seller or the Guarantor,
after due inquiry, that could reasonably be expected to have a Material Adverse
Effect that has not been disclosed to the Purchaser. All projections furnished
on behalf of the Seller or the Guarantor to the Purchaser were prepared and
presented in good faith by or on behalf of the Seller or the Guarantor.

         (mm) No Reliance. Each of the Seller and the Guarantor has made its own
independent decisions to enter into the Repurchase Documents and each
Transaction and as to whether such Transaction is appropriate and proper for it
based upon its own judgment and upon advice from such advisors (including,
without limitation, legal counsel and accountants) as it has deemed necessary.
Each of the Seller and the Guarantor is not relying upon any advice from the
Purchaser as to any aspect of the Transactions, including, without limitation,
the legal, accounting or tax treatment of such Transactions.

         (nn) [RESERVED].

         (oo) Insurance. Each of the Seller and the Guarantor has and maintains,
with respect to its Properties and business, insurance which meets the
requirements of Subsection 5.1(ll). In

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       54
<PAGE>

addition, the Seller shall maintain the insurance required by Section 5.7 of the
Custodial Agreement.

         (pp) Purchased Assets. (i) There are no outstanding rights, options,
warrants or agreements for the purchase, sale or issuance of the Purchased
Assets created by, through, or as a result of the Seller's or the Guarantor's
actions or inactions; (ii) there are no agreements on the part of any Repurchase
Party to issue, sell or distribute the Purchased Assets, other than this
Agreement, and (iii) the Seller has no obligation (contingent or otherwise) to
purchase, redeem or otherwise acquire any securities or any interest therein or
to pay any dividend or make any distribution in respect of the Purchased Assets.

         (qq) No Change. Since September 30, 2003 there has been no development
or event, nor any prospective development or event, which has had or could
reasonably be expected to have a Material Adverse Effect.

         (rr) Subsidiaries. The Seller is a Subsidiary of the Guarantor and
Schedule 8 sets forth the name of each direct or indirect Subsidiary of the
Seller and the Guarantor, and, with respect to the Seller only, its form of
organization, its jurisdiction of organization, the total number of issued and
outstanding shares or other interests of Capital Stock thereof, the classes and
number of issued and outstanding shares or other interests of Capital Stock of
each such class, the name of each holder of Capital Stock thereof and the number
of shares or other interests of such Capital Stock held by each such holder and
the percentage of all outstanding shares or other interests of such class of
Capital Stock held by such holders.

         (ss) Labor Relations. Neither the Seller nor the Guarantor is engaged
in any unfair labor practice which could reasonably be expected to have a
Material Adverse Effect. There is (i) no unfair labor practice complaint pending
or, to the best knowledge of each of the Seller and the Guarantor and each of
the Subsidiaries, threatened against the Seller or the Guarantor before the
National Labor Relations Board which could reasonably be expected to have a
Material Adverse Effect and no grievance or arbitration proceeding arising out
of or under a collective bargaining agreement is so pending or, to the knowledge
of the Repurchase Parties, threatened, (ii) no strike, labor dispute, slowdown
or stoppage pending or, to the best knowledge of each of the Seller and the
Guarantor, threatened against the Seller or the Guarantor, and (iii) no union
representation question existing with respect to the employees of a Repurchase
Party and to the knowledge of the Repurchase Parties, no union organizing
activities are taking place with respect to any thereof.

         (tt) Separateness. As of the date hereof, the Seller (i) owns no
assets, and does not engage in any business, other than the assets and
transactions specifically contemplated by this Repurchase Agreement; (ii) has
not incurred any indebtedness or obligation, secured or unsecured, direct or
indirect, absolute or contingent (including guaranteeing any obligation), other
than (W) with respect to Retained Interests, (X) commitments to make loans which
may become Eligible Assets, and (Y) as permitted herein; (iii) has not made any
loans or advances to any Affiliate other than loans to the Guarantor that have
been disclosed in writing to and approved by the Purchaser, and has not acquired
obligations or securities of its Affiliates; (iv) has paid its debts and
liabilities (including, as applicable, shared personnel and overhead

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       55
<PAGE>

expenses) only from its own assets; (v) complies with the provisions of its
organizational documents; (vi) does all things necessary to observe
organizational formalities and to preserve its existence, and has not amended,
modified or otherwise changed its Governing Documents, or suffered same to be
amended, modified or otherwise changed; (vii) maintains all of its books,
records, financial statements and bank accounts separate from those of its
Affiliates (except that such financial statements may be consolidated to the
extent consolidation is required under the GAAP consistently applied or as a
matter of Applicable Law); (viii) is, and at all times holds itself out to the
public as, a legal entity separate and distinct from any other entity (including
any Affiliate), corrects any known misunderstanding regarding its status as a
separate entity, conducts business in its own name, does not identify itself or
any of its Affiliates as a division or part of the other; (ix) maintains
adequate capital for the normal obligations reasonably foreseeable in a business
of its size and character and in light of its contemplated business operations;
(x) does not engage in or suffer any change of ownership, dissolution, winding
up, liquidation, consolidation or merger in whole or in part; (xi) does not
commingle its funds or other assets with those of any Affiliate or any other
Person; (xii) maintains its accounts separately from those of any Affiliate or
any other Person; (xiii) does not hold itself out to be responsible for the
debts or obligations of any other Person; (xiv) has not (A) filed or consented
to the filing of any Insolvency Proceeding with respect to the Seller,
instituted any proceedings under any applicable Insolvency Law or otherwise
sought any relief under any laws relating to the relief from debts or the
protection of debtors generally with respect to the Seller, (B) sought or
consented to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian or any similar official for the Seller or a substantial
portion of its properties or (C) made any assignment for the benefit of the
Seller's creditors; (xv) has at least one (1) Independent Director or such
greater number as required by the Purchaser or any Rating Agency; (xvi) shall
maintain an arm's length relationship with its Affiliates; (xvii) maintain a
sufficient number of employees in light of contemplated business operations;
(xviii) use separate stationary, invoices and checks; and (xvix) allocate fairly
and reasonably any overhead for shared office space.

                                    ARTICLE V

                                    COVENANTS

         SECTION 5.1 COVENANTS OF THE SELLER.

         From the date hereof until the Aggregate Unpaids are paid in full:

         (a) Compliance with Laws. Each of the Seller and the Guarantor will
comply in all material respects with all Applicable Laws (including
Environmental Laws), including those with respect to the Purchased Items or any
part thereof, and all Contractual Obligations.

         (b) Preservation of Company Existence. Each of the Seller and the
Guarantor will preserve and maintain its company existence, rights, franchises
and privileges in the jurisdiction of its formation and will qualify and remain
qualified in good standing as a corporation in each jurisdiction where the
failure to preserve and maintain such existence, rights, franchises,

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       56
<PAGE>

privileges and qualification has had, or could reasonably be expected to have, a
Material Adverse Effect.

         (c) Performance and Compliance with Purchased Assets. The Seller will,
at its expense, timely and fully perform and comply (or cause the Transferors to
perform and comply pursuant to the Purchase Agreements) with all provisions,
covenants and other promises required to be observed by it under the Purchased
Items and all other agreements related to such Purchased Items.

         (d) Keeping of Records and Books of Account. Each of the Seller and the
Guarantor will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing the
Purchased Items in the event of the destruction of the originals thereof) and
will keep and maintain all documents, books, records and other information
reasonably necessary or advisable in which complete entries are made in
accordance with GAAP and Applicable Laws.

         (e) Perfection. The Seller will (i) acquire such Purchased Items
pursuant to and in accordance with the terms of the Purchase Agreements, (ii)
take all action necessary to perfect, protect and more fully evidence the
Seller's ownership of such Mortgage Assets under the Purchase Agreements free
and clear of any Lien other than the Lien created hereunder and Permitted Liens,
including, without limitation, (A) file and maintain effective financing
statements against the Transferors in all necessary or appropriate filing
offices, and filing continuation statements, amendments or assignments with
respect thereto in such filing offices, and (B) execute or cause to be executed
such other instruments or notices as may be necessary or appropriate, and (iii)
take all additional action that the Purchaser may reasonably request to perfect,
protect and more fully evidence the respective interests of the parties to this
Agreement in the Purchased Items.

         (f) Delivery of Income. The Seller will deposit and cause all Servicers
to deposit all Income received in respect of the Purchased Items into the
Collection Account within two (2) Business Days of receipt thereof. The Seller
shall instruct all PSA Servicers under the Pooling and Servicing Agreements to
deposit into the Collection Account within two (2) Business Days of the date the
PSA Servicer is obligated to disburse the same under the Pooling and Servicing
Agreements all Income in respect of the Purchased Items and the Seller shall
take reasonable steps necessary to enforce such instructions.

         (g) Termination Events. Each of the Seller and the Guarantor will
provide the Purchaser with immediate written notice of the occurrence of each
Termination Event and each Unmatured Termination Event of which the Seller or
the Guarantor has knowledge or has received notice. In addition, no later than
two (2) Business Days following the Seller's or the Guarantor's knowledge or
notice of the occurrence of any Termination Event or Unmatured Termination
Event, the Seller or the Guarantor will provide to the Purchaser a written
statement of a Responsible Officer of the Seller or the Guarantor setting forth
the details of such event and the action that the Seller or the Guarantor
proposes to take with respect thereto.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       57
<PAGE>

         (h) Adverse Claims. The Seller will not create, or participate in the
creation of, or permit to exist, any Liens in relation to each Purchased Item
other than Permitted Liens or as disclosed to the Purchaser and existing as of
the date of this Agreement.

         (i) Seller's Assets. With respect to each Purchased Item acquired by
the Purchaser, the Seller will (i) take all action necessary to perfect, protect
and more fully evidence the Purchaser's ownership of such Purchased Item,
including, without limitation, (A) filing and maintaining effective financing
statements against the Seller in all necessary or appropriate filing offices,
and filing continuation statements, amendments or assignments with respect
thereto in such filing offices, and (B) executing or causing to be executed such
other instruments or notices as may be necessary or appropriate and (ii) taking
all additional action that the Purchaser may reasonably request to perfect,
protect and more fully evidence the respective interests of the parties to this
Agreement and the Repurchase Documents in such Purchased Items.

         (j) Notices. Each of the Seller and the Guarantor will furnish notice
to the Purchaser with respect to the following:

             (i) Representations. Forthwith upon receiving knowledge of the
         same, the Seller or the Guarantor shall notify the Purchaser if any
         representation or warranty set forth in Section 4.1 or Schedule 1 was
         incorrect at the time it was given or deemed to have been given and at
         the same time shall deliver to the Purchaser a written notice setting
         forth in reasonable detail the nature of such facts and circumstances.
         In particular, but without limiting the foregoing, the Seller and the
         Guarantor shall notify the Purchaser in the manner set forth in the
         preceding sentence before any Purchase Date of any facts or
         circumstances within the knowledge of the Seller or the Guarantor that
         would render any of the said representations and warranties untrue at
         the date when such representations and warranties were made or deemed
         to have been made;

             (ii) Proceedings. As soon as possible and in any event within three
         (3) Business Days after the Seller or the Guarantor receives notice or
         obtains knowledge thereof, notice of any settlement of, material
         judgment (including a material judgment with respect to the liability
         phase of a bifurcated trial) in or commencement of any labor
         controversy (of a material nature), litigation, action, suit,
         arbitration or proceeding before any court or governmental department,
         commission, board, bureau, agency, arbitrator, investigation or
         instrumentality, domestic or foreign, affecting (A) the Purchased
         Items, (B) the Repurchase Documents, (C) the Purchaser's interest in
         the Purchased Items, or (D) the Seller or the Guarantor or any of their
         Affiliates and, with respect to this clause (D) only, the amount in
         controversy exceeds $250,000;

             (iii) Material Events. Promptly upon becoming aware thereof, notice
         of any other event or circumstances that, in the reasonable judgment of
         the Seller or the Guarantor, is likely to have a Material Adverse
         Effect;

             (iv) Casualty. With respect to any Purchased Asset hereunder,
         promptly upon receipt of notice or knowledge that the Underlying
         Mortgaged Property has been

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       58
<PAGE>

         damaged by waste, fire, earthquake or earth movement, flood, tornado or
         other casualty, or otherwise damaged so as to affect adversely the
         Asset Value of such Purchased Asset;

                  (v) Liens. Promptly upon receipt of notice or knowledge of any
         Lien or security interest on, or claim asserted against, any Purchased
         Item other than Permitted Liens;

                  (vi) Assets. Promptly upon any material change in the market
         value of any or all of the Seller's or the Guarantor's assets that
         could reasonably be expected to have a Material Adverse Effect;

                  (vii) Defaults. (A) Any material default (beyond any
         applicable notice and cure period) related to any Purchased Item, or
         (B) any default (beyond any applicable notice and cure period) under
         any Contractual Obligation of the Seller or the Guarantor or any of
         their Subsidiaries, which, if not cured, could reasonably be expected
         to have a Material Adverse Effect;

                  (viii) Servicers. The resignation or termination of any
         Servicer under any Servicing Agreement with respect to any Purchased
         Asset or any PSA Servicer under a Pooling and Servicing Agreement;

                  (ix) Sales. The conveyance, sale, lease, assignment, transfer
         or other disposition (any such transaction, or related series of
         transactions, a "Sale") of any Property, business or assets of the
         Seller or the Guarantor whether now owned or hereafter acquired, with
         the exception of (A) this Agreement and (B) any Sale of Property by the
         Seller or the Guarantor that is not material to the conduct of its
         business and is effected in the ordinary course of business;

                  (x) Ratings. The establishment of a rating assigned to the
         long - term unsecured debt issued by the Guarantor by Moody's or S&P
         (or other rating agency acceptable to the Purchaser) and of any
         downgrade in such rating once established; and

                  (xi) Losses. Any loss or expected loss in respect of any
         Purchased Asset, or any other event or change in circumstances or
         expected event or change in circumstances that could be reasonably be
         expected to result in a material decline in value or cash flow of any
         Purchased Asset.

Each notice pursuant to this Subsection 5.1(j) shall be accompanied by a
statement of a Responsible Officer of the Seller or the Guarantor, as
applicable, setting forth details of the occurrence referred to therein and
stating what action the Seller or the Guarantor, as applicable, has taken or
proposes to take with respect thereto.

         (k) Purchased Assets Not to be Evidenced by Instruments. Neither the
Seller nor the Guarantor will take any action to cause any Purchased Item that
is not, as of the applicable Purchase Date, evidenced by an Instrument to be so
evidenced except in connection with the enforcement or collection of such
Purchased Items.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       59
<PAGE>

         (l) Security Interests. The Seller will not sell, pledge, assign or
transfer to any other Person, or grant, create, incur, assume or suffer to exist
any Lien on any Purchased Item other than Permitted Liens, whether now existing
or hereafter transferred hereunder, or any interest therein, and the Seller will
not sell, pledge, assign or suffer to exist any Lien on its interest, if any,
hereunder. The Seller will promptly notify the Purchaser of the existence of any
Lien other than Permitted Liens on any Purchased Item, and the Seller shall
defend the right, title and interest of the Purchaser in, to and under the
Purchased Items against all claims of third parties other than Permitted Liens.

         (m) Deposits to Collection Account. Subject to Subsection 2.8(c), the
Seller will not deposit or otherwise credit, or cause or permit to be so
deposited or credited, to the Collection Account cash or cash proceeds other
than Income in respect of Purchased Items.

         (n) Change of Name or Location of Loan Files. The Seller shall not (i)
change its name, organizational number, identity, structure or jurisdiction of
formation, move the location of its principal place of business and chief
executive office, or change the offices where it keeps the records (as defined
in the UCC) from the location referred to in Section 13.2, or (ii) move, or
consent to the Custodian moving, the Mortgage Asset Files from the location
thereof on the Closing Date, unless the Seller has given at least thirty (30)
days' prior written notice to the Purchaser and has taken all actions required
under the UCC of each relevant jurisdiction in order to continue the first
priority perfected security interest of the Purchaser in the Purchased Items.

         (o) Exceptions. The Seller shall promptly correct any and all
Exceptions set forth on any Asset Schedule and Exception Report.

         (p) ERISA Matters. The Seller will not (i) engage or permit any ERISA
Affiliate to engage in any prohibited transaction for which an exemption is not
available or has not previously been obtained from the United States Department
of Labor, (ii) permit to exist any accumulated funding deficiency, as defined in
Section 302(a) of ERISA and Section 412(a) of the Code, or funding deficiency
with respect to any Benefit Plan other than a Multiemployer Plan, (iii) fail to
make any payments to a Multiemployer Plan that the Seller or any ERISA Affiliate
may be required to make under the agreement relating to such Multiemployer Plan
or any law pertaining thereto, (iv) terminate any Benefit Plan so as to result
in any liability, (v) permit to exist any occurrence of any Reportable Event or
(vi) otherwise violate the provisions of ERISA or the Code with respect to any
Benefit Plan.

         (q) Purchase Agreements; Servicing Agreements. The Seller will not
materially amend, modify, waive or terminate any provision of any Purchase
Agreement, Servicing Agreement or Pooling and Servicing Agreement without the
prior written consent of the Purchaser. Notwithstanding the foregoing, but
subject to the Purchaser's rights under Article VI, the Seller shall have the
right to terminate any of the foregoing upon the occurrence of a material
default (beyond any applicable notice and cure period) of the other party
thereto.

         (r) Compliance with Anti - Money Laundering Laws. The Seller shall
comply with all applicable Anti - Money Laundering Laws. The Seller shall
conduct the requisite due

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       60
<PAGE>

diligence in connection with the origination or acquisition of each Mortgage
Asset for purposes of the Anti - Money Laundering Laws, including with respect
to the legitimacy of the applicable Borrower and the origin of the assets used
by the said Borrower to purchase the property in question, and will maintain
sufficient information to identify the applicable Borrower for purposes of the
Anti-Money Laundering Laws.

         (s) Financial Statements. The Seller and the Guarantor, as applicable,
shall deliver to the Purchaser:

             (i) as soon as available, and in any event within forty - five (45)
         calendar days after the end of each fiscal quarter of each of the
         Seller and the Guarantor, the unaudited consolidated balance sheets of
         the Seller, the Guarantor and their consolidated Subsidiaries as at the
         end of such period and the related unaudited consolidated statements of
         income and retained earnings and of cash flows for the Seller, the
         Guarantor and their consolidated Subsidiaries for such period and the
         portion of the fiscal year through the end of such period, accompanied
         by a certificate of a Responsible Officer of the Seller and Guarantor,
         which certificate shall state that said consolidated financial
         statements fairly present in all material respects the consolidated
         financial condition and results of operations of the Seller, the
         Guarantor and their consolidated Subsidiaries in accordance with GAAP,
         consistently applied, as at the end of, and for, such period (subject
         to normal year-end adjustments);

             (ii) as soon as available, and in any event within ninety (90) days
         after the end of each fiscal year of each of the Seller and the
         Guarantor, the audited consolidated balance sheets of the Seller, the
         Guarantor and their consolidated Subsidiaries as at the end of such
         fiscal year and the related consolidated statements of income and
         retained earnings and of cash flows for the Seller, the Guarantor and
         their consolidated Subsidiaries for such year, setting forth in each
         case in comparative form the figures for the previous year, accompanied
         by an opinion thereon of independent certified public accountants of
         recognized national standing, which opinion shall not be qualified as
         to scope of audit or going concern and shall state that said
         consolidated financial statements fairly present the consolidated
         financial condition and results of operations of the Seller, the
         Guarantor and their respective consolidated Subsidiaries as at the end
         of, and for, such fiscal year in accordance with GAAP;

             (iii) with respect to each Purchased Asset, if provided to the
         Seller or any Servicer or PSA Servicer by the Borrower under any
         Purchased Asset, as soon as available, but in any event not later than
         forty - five (45) days after the end of each fiscal quarter of the
         Seller, the operating statement and rent roll for each Underlying
         Mortgaged Property; provided, however, the Purchaser reserves the right
         in its reasonable discretion to request such information on a monthly
         basis (to be provided no later than thirty (30) days after the end of
         each month);

             (iv) with respect to each Purchased Asset, if provided to the
         Seller by the Borrower under any Purchased Asset, as soon as available,
         but in any event not later than

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       61
<PAGE>

         thirty (30) days after receipt thereof, the annual balance sheet with
         respect to such Borrower;

                  (v) with respect to each Purchased Asset, as soon as available
         but in any event not later than thirty (30) days after receipt thereof,
         (A) the related monthly securitization report, if any, and any other
         reports delivered under the Pooling and Servicing Agreements to the
         Seller, if any, and, (B) within forty - five (45) days after the end of
         each quarter, a copy of the standard monthly exception report, prepared
         by the Seller in the ordinary course of its business in respect of the
         related Purchased Asset or Underlying Mortgaged Property;

                  (vi) from time to time such other information regarding the
         financial condition, operations or business of the Seller and the
         Guarantor as the Purchaser may reasonably request;

                  (vii) as soon as reasonably possible, and in any event within
         thirty (30) days after a Responsible Officer of the Seller or Guarantor
         knows, or with respect to any Plan or Multiemployer Plan to which the
         Seller, the Guarantor or any ERISA Affiliate makes direct
         contributions, has reason to believe, that any of the events or
         conditions specified below with respect to any Plan or Multiemployer
         Plan has occurred or exists, a statement signed by a senior financial
         officer of the Seller or the Guarantor setting forth details respecting
         such event or condition and the action, if any, that the Seller, the
         Guarantor or their ERISA Affiliate proposes to take with respect
         thereto (and a copy of any report or notice required to be filed with
         or given to the PBGC by the Seller, the Guarantor or an ERISA Affiliate
         with respect to such event or condition):

                           (A) any Reportable Event (provided that a failure to
                  meet the minimum funding standard of Section 412 of the Code
                  or Section 302 of ERISA or any successor provision thereof,
                  including without limitation the failure to make on or before
                  its due date a required installment under Section 412(m) of
                  the Code or Section 302(e) of ERISA or any successor provision
                  thereof, shall be a "Reportable Event" regardless of the
                  issuance of any waivers in accordance with Section 412(d) of
                  the Code or any successor provision thereof); and any request
                  for a waiver under Section 412(d) of the Code or any successor
                  provision thereof for any Plan;

                           (B) the distribution under Section 4041(c) of ERISA
                  or any successor provision thereof of a notice of intent to
                  terminate any Plan or any action taken by the Seller, the
                  Guarantor or an ERISA Affiliate to terminate any Plan;

                           (C) the institution by the PBGC of proceedings under
                  Section 4042 of ERISA or any successor provision thereof for
                  the termination of, or the appointment of a trustee to
                  administer, any Plan, or the receipt by the Seller, the
                  Guarantor or any ERISA Affiliate of a notice from a
                  Multiemployer Plan that such action has been taken by the PBGC
                  with respect to such Multiemployer Plan;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       62
<PAGE>

                           (D) the complete or partial withdrawal from a
                  Multiemployer Plan by the Seller, the Guarantor or any ERISA
                  Affiliate that results in liability under Section 4201 or 4204
                  of ERISA or any successor provision thereof (including the
                  obligation to satisfy secondary liability as a result of a
                  purchaser default) that would have a Material Adverse Effect
                  or the receipt by the Seller, the Guarantor or any ERISA
                  Affiliate of notice from a Multiemployer Plan that it is in
                  reorganization or insolvency pursuant to Section 4241 or 4245
                  of ERISA or any successor provision thereof or that it intends
                  to terminate or has terminated under Section 4041A of ERISA or
                  any successor provision thereof;

                           (E) the institution of a proceeding by a fiduciary of
                  any Multiemployer Plan against the Seller, the Guarantor or
                  any ERISA Affiliate to enforce Section 515 of ERISA or any
                  successor provision thereof, which proceeding is not dismissed
                  within thirty (30) days; and

                           (F) the adoption of an amendment to any Plan that
                  would result in the loss of tax exempt status of the trust of
                  which such Plan is a part if the Seller, the Guarantor or an
                  ERISA Affiliate fails to provide timely security to such Plan
                  in accordance with the provisions of Section 401(a)(29) of the
                  Code or Section 307 of ERISA or any successor provision
                  thereof; and

                  (viii) all such financial statements shall be complete and
         correct in all material respects and shall be prepared in reasonable
         detail and in accordance with GAAP applied consistently throughout the
         periods reflected therein and with prior periods (except as approved by
         such accountants or officer, as the case may be, and disclosed
         therein); provided, that any financial statements delivered by the
         Seller with respect to the Borrower under any Underlying Mortgage Loan
         shall be delivered to the Purchaser in the form received by the Seller.

         (t) Certificates; Other Information. The Seller and the Guarantor, as
applicable, shall furnish to the Purchaser:

                  (i) concurrently with the delivery of the financial statements
         referred to in Subsections 5.1(s)(i) and (ii) above and in connection
         with the delivery of each Confirmation, a Compliance Certificate from a
         Responsible Officer of each of the Seller and the Guarantor, which
         Compliance Certificate shall, among other things, on a quarterly basis
         describe in detail the calculations supporting the Responsible
         Officer's certification of the Guarantor's compliance with the
         Financial Covenants;

                  (ii) as soon as available, but in any event not later than
         ninety (90) days after the end of each fiscal year of the Seller and
         Guarantor, respectively, and provided that the disclosure does not
         violate Applicable Laws relating to insider trading, a copy of the
         projections of the Seller and Guarantor of the operating budget and
         cash flow budget of Seller and Guarantor, respectively, for the
         succeeding fiscal year, such projections to be

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       63
<PAGE>

         accompanied by a certificate of a Responsible Officer certifying that
         such projections have been prepared in good faith based upon reasonable
         assumptions;

                  (iii) promptly upon receipt thereof, copies of all reports
         submitted to each of the Seller and the Guarantor by independent
         certified public accountants in connection with each annual, interim or
         special audit of the books and records of the Seller and the Guarantor
         made by such accountants, including, without limitation, any management
         letter commenting on the Seller's and the Guarantor's internal controls
         submitted by such accountants to management in connection with their
         annual audit;

                  (iv) within forty - five (45) days of the end of each calendar
         quarter, the Seller shall provide the Purchaser with a quarterly
         report, which report shall include, among other items, a summary of
         such Seller's delinquency and loss experience with respect to Purchased
         Assets serviced by the Seller or any Servicer or PSA Servicer or any
         designee of the foregoing, the Seller's internal risk rating and/or
         surveillance on the Purchased Assets, and, to the extent provided to
         the Seller or any Servicer or PSA Servicer by the Borrowers under any
         Purchased Assets, operating statements, the occupancy status of such
         Purchased Property and other property level information plus any such
         additional reports as the Purchaser may reasonably request with respect
         to the Seller or any Servicer or PSA Servicer servicing portfolio or
         pending originations of Mortgage Assets;

                  (v) within thirty (30) days after the same are sent, copies of
         all financial statements, reports, notices and other documents that
         each of the Seller and the Guarantor sends to its stockholders and,
         within thirty (30) days after the same are filed, copies of all
         financial statements and reports that the Seller and the Guarantor may
         make to, or file with, the Securities and Exchange Commission or any
         successor or analogous Governmental Authority;

                  (vi) no later than the fifteenth (15th) day of each month,
         with respect to each Purchased Asset, a Purchased Asset Data Summary,
         substantially in the form of Exhibit XI ("Purchased Asset Data
         Summary"), properly completed;

                  (vii) to the extent not prohibited by Applicable Law, the
         Seller shall promptly provide the Purchaser with copies of all
         documents that the Seller, the Guarantor or any Subsidiary of the
         Seller or the Guarantor is required to file with any regulatory body in
         accordance with its regulations;

                  (viii) the Seller shall promptly deliver or cause to be
         delivered to the Purchaser (i) any report or material notice received
         by the Seller from any obligor under the Purchased Assets promptly
         following receipt thereof and (ii) any other such document or
         information relating to the Purchased Assets as the Purchaser may
         reasonably request in writing from time to time;

                  (ix) no later than sixty (60) days after the end of each
         fiscal quarter of the Seller and the Guarantor, an updated list of
         Subsidiaries as of such time; and

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       64
<PAGE>

                  (x) promptly, such additional financial and other information
         as the Purchaser may from time to time reasonably request.

         (u) Existence, etc. Each of the Seller and the Guarantor shall:

                  (i) continue to engage in business of the same general type as
         now conducted by it and maintain and preserve its legal existence and
         all of its material rights, privileges, licenses and franchises
         necessary for the operation of its business; provided, however, that
         nothing in this Subsection 5.1(u) shall prohibit any transaction
         expressly permitted under Subsection 5.1(v);

                  (ii) pay and discharge all taxes, assessments and governmental
         charges or levies imposed on it or on its income or profits or on any
         of its Property prior to the date on which penalties attach thereto,
         except for any such tax, assessment, charge or levy the payment of
         which is being contested in good faith and by proper proceedings and
         against which adequate reserves are being maintained in accordance with
         GAAP; and

                  (iii) permit representatives of the Purchaser, upon reasonable
         notice (unless a Unmatured Termination Event or Termination Event shall
         have occurred and is continuing, in which case, no prior notice shall
         be required) during normal business hours and at the expense of the
         Seller and the Guarantor, to examine, copy and make extracts from the
         Seller's, the Guarantor's or any of their Subsidiaries' books and
         records, to inspect any of their Properties, and to discuss its
         business and affairs with their officers, employees and independent
         accountants, all to the extent reasonably requested by the Purchaser.

         (v) Prohibition of Fundamental Changes. Neither the Seller nor the
Guarantor shall enter into any transaction of merger or consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation, winding up or dissolution) or sell all or substantially all of its
assets; provided, however, that each of the Seller and the Guarantor may merge
or consolidate with (i) any wholly owned Subsidiary of the Seller or the
Guarantor, respectively, or (ii) any other Person if the Seller or the
Guarantor, as applicable, is the surviving entity; and provided, further, that,
if after giving effect thereto, no Unmatured Termination Event or Termination
Event would exist hereunder.

         (w) Margin Deficit. If at any time there exists a Margin Deficit, the
Seller shall cure such Margin Deficit in accordance with Section 2.7.

         (x) Transactions with Affiliates. Each of the Seller and the Guarantor
may enter into any transaction with an Affiliate, provided that such transaction
is upon fair and reasonable terms no less favorable to the Seller or the
Guarantor than it would obtain in a comparable arm's length transaction with a
Person that is not an Affiliate; provided, further, that in no event shall the
Seller transfer to the Purchaser hereunder any Eligible Asset acquired by the
Seller from an Affiliate of the Seller unless the Seller shall have delivered a
certified copy of the related Purchase Agreement and a True Sale Opinion has
been delivered to the Purchaser prior to such sale.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       65
<PAGE>

         (y) Limitations on Guarantees. The Seller shall not create, incur,
assume or suffer to exist any Guarantees.

         (z) Sub-Limits. The Seller shall not sell to the Purchaser any
Eligible Assets if, after giving effect to such Transactions, a Sub - Limit
would be exceeded, unless waived in writing by the Purchaser in its sole and
absolute discretion.

         (aa) Limitation on Distributions. The Seller shall not declare or make
any payment on account of, or set apart assets for, a sinking or other analogous
fund for the purchase, redemption, defeasance, retirement or other acquisition
of any equity or partnership interest of the Seller, whether now or hereafter
outstanding, or make any other distribution in respect thereof, either directly
or indirectly, whether in cash or property or in obligations of Seller, except
that the Seller may declare and pay dividends so long as no Unmatured
Termination Event or Termination Event shall have occurred and be continuing, in
an amount necessary to comply with any Applicable Laws governing real estate
investment trusts.

         (bb) Maintenance of Liquidity. The Guarantor shall not permit, for any
calendar quarter, Liquidity for such Test Period to be less than the greater of
(i) $15,000,000 and (ii) an amount equal to the amount necessary to cover the
debt service and any protective advances on the Mortgaged Assets for a period of
not less than six (6) months, as reasonably determined by the Guarantor and
confirmed by the Purchaser.

         (cc) Maintenance of Tangible Net Worth. The Guarantor shall not permit,
for any Test Period, Tangible Net Worth at any time to be less than the sum of
(i) $75,000,000 plus, (ii) an amount equal to 75% of the aggregate proceeds
received by the Guarantor in connection with the offering or issuance of any
Capital Stock of the Guarantor after the Closing Date, plus (iii) an amount
equal to 80% of the consolidated retained earnings of the Guarantor accrued
after the Closing Date.

         (dd) Maintenance of Ratio of Total Indebtedness to Tangible Net Worth.
The Guarantor shall not permit the ratio of Total Indebtedness to Tangible Net
Worth at any time to be greater than 4:0 to 1:0 for the Seller.

         (ee) Interest Coverage. The Guarantor shall not permit, for any Test
Period, the ratio of (i) the sum of Consolidated Adjusted EBITDA of the
Guarantor for such Test Period to (ii) the Consolidated Interest Expense of the
Guarantor for such Test Period to be less than 2:0 to 1:0.

         (ff) Servicer; Servicing Tape. The Seller shall cause each Servicer and
PSA Servicer to provide to the Purchaser and to the Custodian, via Electronic
Transmission, promptly upon request by the Purchaser a remittance report
containing servicing information, including, without limitation, those fields
reasonably requested by the Purchaser from time to time, on a loan-by-loan
basis and in the aggregate, with respect to the Purchased Items serviced
hereunder by the Seller or any Servicer or PSA Servicer for the month (or any
portion thereof) prior to the date of the Purchaser's request (such remittance
report, an "Asset Tape"). The Seller shall not cause the Purchased Items to be
serviced by a third party other than pursuant to the Servicing Agreements

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       66
<PAGE>

or the Pooling and Servicing Agreements or, if not serviced thereunder, by any
Servicer other than a Servicer expressly approved in writing by the Purchaser,
which approval shall be deemed granted by the Purchaser with respect to each
Servicer listed on Schedule 4 attached hereto, as such schedule may be amended
or supplemented from time to time, after the execution of this Agreement.

         (gg) Extension or Amendment of Purchased Assets. The Seller will not,
except as otherwise permitted in Section 6.10, extend, amend, waive or otherwise
modify, or permit any Servicer to extend, amend, waive or otherwise modify, the
material terms of any Purchased Item, provided that the foregoing shall not
prohibit the Seller, a Servicer or a PSA Servicer from permitting, prior to a
default thereunder, any Borrower to exercise an extension option contained in
any Mortgage Loan Documents.

         (hh) Remittance of Prepayments. The Seller shall remit or cause to be
remitted to the Purchaser with sufficient detail, via Electronic Transmission,
to enable the Purchaser to appropriately identify the Purchased Item to which
any amount remitted applies, all full or partial principal prepayments
(regardless of the source of repayment) on any Purchased Item that the Seller, a
Servicer or a PSA Servicer has received or that have been deposited into the
Collection Account no later than one (1) Business Days following the date such
prepayment was received or deposited.

         (ii) Custodial Agreement and Account Agreement. The Seller shall
maintain each of the Custodial Agreement and the Account Agreement in full force
and effect and shall not amend or modify either of the Custodial Agreement or
the Account Agreement or waive compliance with any provisions thereunder without
the prior written consent of the Purchaser.

         (jj) Inconsistent Agreements. Each of the Seller and the Guarantor
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, enter into any agreement containing any provision that would be
violated or breached by any Transaction hereunder or by the performance by the
Seller or the Guarantor of its obligations under any Repurchase Document.

         (kk) Escrow Imbalance. The Seller shall (to the extent it is acting as
a servicer) or shall cause the Servicer to, no later than five (5) Business Days
after learning (from any source) of any material imbalance in any escrow
account, fully and completely correct and eliminate such imbalance, including,
without limitation, depositing its own funds into such account to eliminate any
overdrawal or deficit, to the extent required by the applicable Servicing
Agreement (in the case of a Servicer).

         (ll) Maintenance of Property; Insurance. The Seller and the Guarantor
shall keep all Property useful and necessary in its business in good working
order and condition, shall maintain with financially sound and reputable
insurance companies insurance on all its Property in at least such amounts and
against at least such risks as are usually insured against in the same general
area by companies engaged in the same or a similar business, and furnish to the
Purchaser, upon written request, full information as to the insurance carried.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       67
<PAGE>

         (mm) Interest Rate Protection Agreements. The Seller shall perform its
duties and obligations under and shall otherwise maintain any existing Interest
Rate Protection Agreements.

         (nn) Payment of Obligations. Each of the Seller and the Guarantor shall
pay, discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its obligations of whatever nature, except
where the amount or validity thereof is currently being contested in good faith
by appropriate proceedings and reserves in conformity with GAAP with respect
thereto have been provided on the books of the Seller, the Guarantor or any of
their Subsidiaries, as the case may be.

         (oo) Distributions in Respect of Purchased Assets. If the Seller shall
receive any rights, whether in addition to, in substitution of, as a conversion
of, or in exchange for any Purchased Assets, or otherwise in respect thereof,
the Seller shall accept the same as the Purchaser's agent, hold the same in
trust for the Purchaser and deliver the same forthwith to the Purchaser (or its
designee) in the exact form received, together with duly executed instruments of
transfer or assignment in blank and such other documentation as the Purchaser
shall reasonably request. If any sums of money or property are paid or
distributed in respect of the Purchased Assets and received by the Seller (other
than the Borrower Reserve Payments), the Seller shall promptly pay or deliver
such money or property to the Purchaser and, until such money or property is so
paid or delivered to the Purchaser, hold such money or property in trust for the
Purchaser, segregated from other funds of the Seller.

         (pp) Limitation on Indebtedness. The Seller shall not create, incur,
assume or suffer to exist any Indebtedness of the Seller, except Indebtedness of
the Seller permitted under this Agreement.

         (qq) Unrelated Activities. The Seller shall not engage in any activity
other than activities specifically permitted by this Section 5.1, including, but
not limited to, investment in real estate related assets and the purchasing,
financing and holding of commercial mortgage - backed securities and activities
incident thereto.

         (rr) Governing Documents. The Seller shall not amend its Governing
Documents without the prior written consent of the Purchaser.

         (ss) Separateness. The Seller shall (i) own no assets, and shall not
engage in any business, other than the assets and transactions specifically
contemplated by this Agreement; (ii) not incur any indebtedness or obligation,
secured or unsecured, direct or indirect, absolute or contingent (including
guaranteeing any obligation), other than (A) pursuant hereto and under the
agreements and documents evidencing, securing or in any other way related to the
Purchased Assets, (B) customary representations, warranties, indemnities and
other agreements in connection with the origination, acquisition, servicing,
collection, enforcement, financing, participation, securitization, sale or other
disposition of the Purchased Assets, and (C) obligations under zoning and other
governmental regulations, rules, prohibitions and ordinances and proposed
restrictions, covenants, conditions, limitations, easements, rights - of - way
and other matters existing of public record or proposed to be recorded or filed
in the future governing or affecting mortgaged real property or that may
otherwise require the consent of or

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       68
<PAGE>

joinder by a mortgagee; (iii) not make any loans or advances to any Affiliate
other than loans to the Guarantor which are disclosed in writing to and approved
by the Purchaser, and shall not acquire obligations or securities of its
Affiliates; (iv) pay its debts and liabilities (including, as applicable, shared
personnel and overhead expenses) only from its own assets; (v) comply with the
provisions of its Governing Documents; (vi) do all things necessary to observe
organizational formalities and to preserve its existence, and will not amend,
modify or otherwise change its Governing Documents; (vii) maintain all of its
books, records, financial statements and bank accounts separate from those of
its Affiliates (except that such financial statements may be consolidated to the
extent consolidation is required under the GAAP consistently applied or as a
matter of Applicable Law) and file its own tax returns (except to the extent
consolidation is required or permitted under Applicable Law); (viii) be, and at
all times will hold itself out to the public as, a legal entity separate and
distinct from any other entity (including any Affiliate), shall correct any
known misunderstanding regarding its status as a separate entity, shall conduct
business in its own name, and shall not identify itself or any of its Affiliates
as a division of the other; (ix) maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and
in light of its contemplated business operations; (x) not engage in or suffer
any change of ownership, dissolution, winding up, liquidation, consolidation or
merger in whole or in part; (xi) not commingle its funds or other assets with
those of any Affiliate or any other Person; (xii) maintain its accounts separate
from those of any Affiliate or any other Person; (xiii) shall not hold itself
out to be responsible for the debts or obligations of any other Person; (xiv)
shall not, without the vote of its Independent Director, (A) file or consent to
the filing of any Insolvency Proceeding with respect to the Seller, institute
any proceedings under any applicable Insolvency Law or otherwise seek any relief
under any laws relating to the relief from debts or the protection of debtors
generally with respect to the Seller, (B) seek or consent to the appointment of
a receiver, liquidator, assignee, trustee, sequestrator, custodian or any
similar official for the Seller or a substantial portion of its properties, or
(C) make any assignment for the benefit of the Seller's creditors; (xv) shall
have at all times at least one (1) Independent Director (or such greater number
as required by the Purchaser or the Rating Agencies); (xvi) shall maintain an
arm's length relationship with its Affiliates; (xvii) maintain a sufficient
number of employees in light of contemplated business operations; (xviii) use
separate stationary, invoices and checks; and (xvix) allocate fairly and
reasonably any overhead for shared office space.

         (tt) Pledge Agreement. Neither the Seller nor the Guarantor shall take
any direct or indirect action inconsistent with the Pledge Agreement or the
security interest granted thereunder to the Purchaser in the Equity Interests.

         (uu) Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or be otherwise within the limitations of, another covenant shall not avoid
the occurrence of an Unmatured Termination Event or Termination Event if such
action is taken or condition exists.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       69
<PAGE>

                                   ARTICLE VI

                          ADMINISTRATION AND SERVICING

         SECTION 6.1 SERVICING.

         (a) Appointment. The Purchaser hereby appoints the Seller as its agent
to service the Purchased Items and enforce its rights in and under such
Purchased Items. The Seller hereby accepts such appointment and agrees to
perform the duties and obligations with respect thereto as set forth herein.

         (b) The Seller covenants to maintain or cause the servicing of the
Purchased Items to be maintained in conformity with Accepted Servicing Practices
and in a manner at least equal in quality to the servicing Seller provides for
Mortgage Assets that it owns. In the event that the preceding language is
interpreted as constituting one or more servicing contracts, each such servicing
contract shall terminate automatically upon the earliest of (i) a Termination
Event, (ii) the date on which this Agreement terminates, or (iii) the transfer
of servicing approved by the Purchaser.

         SECTION 6.2 SELLER AS SERVICER.

         If the Purchased Items are serviced by the Seller, the Seller agrees
that, until the repurchase of a Purchased Item on a Repurchase Date, the
Purchaser is the owner of all servicing records for the period that the
Purchaser owns the Purchased Items, including, but not limited to, any and all
servicing agreements, files, documents, records, data bases, computer tapes,
copies of computer tapes, computer programs, proof of insurance coverage,
insurance policies, appraisals, other closing documentation, payment history
records, and any other records relating to or evidencing the servicing of such
Purchased Items (the "Servicing Records"). The Seller covenants to safeguard
such Servicing Records and to deliver them promptly to Purchaser or its designee
(including the Custodian) at the Purchaser's request.

         SECTION 6.3 THIRD PARTY SERVICER.

         If the Purchased Items are serviced by a Servicer or a PSA Servicer
pursuant to a Servicing Agreement or Pooling and Servicing Agreement, as
applicable, the Seller (i) shall, in accordance with Subsection 3.2(h), provide
a copy of each Servicing Agreement and Pooling and Servicing Agreement to the
Purchaser, which shall be in form and substance acceptable to the Purchaser,
and, in connection with each Servicing Agreement, shall provide a Servicer
Notice to the Purchaser substantially in the form of Exhibit VIII hereto, fully
executed by the Seller and the Servicer; and (ii) hereby irrevocably assigns to
the Purchaser and the Purchaser's successors and assigns all right, title and
interest of the Seller in, to and under, and the benefits of, each Servicing
Agreement and each Pooling and Servicing Agreement with respect to the Purchased
Items. Notwithstanding the fact that the Seller has contracted with the
Servicers to service the Purchased Items, the Seller shall remain liable to the
Purchaser for the acts of the Servicers and for the performance of the duties
and obligations set forth herein. The Seller agrees that no Person shall assume
the servicing obligations with respect to the Purchased Items as successor to

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       70
<PAGE>

a Servicer unless such successor is approved in writing by the Purchaser (which
approval shall not be unreasonably withheld or delayed) prior to such assumption
of servicing obligations.

         SECTION 6.4 DUTIES OF THE SELLER.

         (a) Duties. The Seller shall take or cause to be taken all such actions
as may be necessary or advisable to collect the Purchased Items from time to
time, all in accordance with Applicable Laws, with reasonable care and
diligence, and in accordance with the standard set forth in Subsection 6.1(b).
Without limiting the foregoing, the duties of the Seller shall include the
following:

             (i) preparing and submitting claims to, and post - billing liaison
         with, Borrowers on each Purchased Item;

             (ii) maintaining all necessary servicing records with respect to
         the Purchased Items and providing such reports to the Purchaser in
         respect of the servicing of the Purchased Items (including information
         relating to its performance under this Agreement) as may be required
         hereunder or as the Purchaser may reasonably request;

             (iii) maintaining and implementing administrative and operating
         procedures (including, without limitation, an ability to recreate
         Servicing Records evidencing the Purchased Items in the event of the
         destruction of the originals thereof) and keeping and maintaining all
         documents, books, records and other information reasonably necessary or
         advisable for the collection of the Purchased Items;

             (iv) promptly delivering to the Purchaser or the Custodian, from
         time to time, such information and servicing records (including
         information relating to its performance under this Agreement) as the
         Purchaser or the Custodian may from time to time reasonably request;

             (v) identifying each Purchased Item clearly and unambiguously in
         its Servicing Records to reflect that such Purchased Item is owned by
         the Purchaser pursuant to this Agreement;

             (vi) notifying the Purchaser of any material action, suit,
         proceeding, dispute, offset, deduction, defense or counterclaim of
         which it has knowledge or has received notice (A) that is or is
         threatened to be asserted by a Borrower with respect to any Purchased
         Item (or portion thereof); or (B) that is reasonably expected to have a
         Material Adverse Effect;

             (vii) notifying the Purchaser of any proposed changes in its
         collection policies that could have an adverse effect on the
         collectibility of the Purchased Items, on the Seller or on the
         interests of the Purchaser;

             (viii) maintaining the perfected security interest of the Purchaser
         in the Purchased Items;

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       71
<PAGE>

                  (ix) maintaining, in substantially the same manner as the
         Custodian holds the Underlying Mortgaged Asset Documents, all Servicing
         Records and Servicing Files relating to each Purchased Item; and

                  (x) remitting and causing all Servicers and the PSA Servicers
         under Servicing Agreements and the Pooling and Servicing Agreements, if
         applicable, to remit all Income to the Collection Account as required
         by Subsection 5.1(f).

         (b) Purchaser's Rights. Notwithstanding anything to the contrary
contained herein, the exercise by the Purchaser of its rights hereunder shall
not release the Seller from any of its duties or responsibilities with respect
to the Purchased Items. The Purchaser shall not have any obligation or liability
with respect to any Purchased Items, nor shall any of them be obligated to
perform any of the obligations of the Seller hereunder.

         (c) Servicing Programs. In the event that the Seller or the Servicers
use any software program in servicing the Purchased Items that are licensed from
a third party, the Seller shall use its best reasonable efforts to obtain,
either before the Closing Date or as soon as possible thereafter, whatever
licenses or approvals are necessary to allow the Purchaser to use such programs.

         SECTION 6.5 AUTHORIZATION OF THE SELLER.

         (a) The Purchaser hereby authorizes the Seller (including any successor
thereto) to take any and all reasonable steps in its name and on its behalf
necessary or desirable and not inconsistent with the sale of the Purchased Items
to the Purchaser, in the determination of the Seller, to collect all amounts due
under any and all Purchased Items, including, without limitation, endorsing any
of their names on checks and other instruments representing Income, executing
and delivering any and all instruments of satisfaction or cancellation, or of
partial or full release or discharge, and all other comparable instruments, with
respect to the Purchased Items and, after the delinquency of any Purchased Item
and to the extent permitted under and in compliance with Applicable Law, to
commence proceedings with respect to enforcing payment thereof, to the same
extent as the Seller could have done if it had continued to own such Purchased
Items. The Purchaser shall furnish the Seller (and any successors thereto) with
any powers of attorney and other documents necessary or appropriate to enable
the Seller to carry out its servicing and administrative duties hereunder and
shall cooperate with the Seller to the fullest extent in order to ensure the
collectibility of the Purchased Items. In no event shall the Seller be entitled
to make the Purchaser a party to any litigation without the Purchaser's express
prior written consent.

         (b) The Seller shall take such action as the Purchaser may deem
necessary or advisable to enforce collection of the Purchased Items; provided,
however, subject to all other rights of the Purchaser contained herein, that the
Purchaser may, at any time that a Termination Event or Unmatured Termination
Event has occurred and is continuing, notify any Borrower with respect to any
Purchased Items of the assignment of such Purchased Items to the Purchaser and
direct that payments of all amounts due or to become due be made directly to the
Purchaser

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       72
<PAGE>

or any servicer, collection agent or lock - box or other account designated by
the Purchaser and, upon such notification and at the expense of the Seller, the
Purchaser may enforce collection of any such Purchased Items and adjust, settle
or compromise the amount or payment thereof.

         SECTION 6.6 COLLECTION OF PAYMENTS.

         (a) Collection Efforts, Modification of Purchased Items. The Seller
will, consistent with the standard set forth in Subsection 6.1(b), collect all
payments called for under the terms and provisions of the Purchased Items and
when the same become due and shall follow those collection procedures that it
follows with respect to all comparable Purchased Items that it services for
itself or others.

         (b) Acceleration. To the extent consistent with the standard set forth
in Subsection 6.1(b), the Seller shall accelerate the maturity of all or any
scheduled payments and other amounts due under any Purchased Asset in which a
default under the terms thereof has occurred and is continuing (after the lapse
of any applicable grace period) promptly after such Purchased Item becomes a
Defaulted Mortgage Asset.

         (c) Taxes and Other Amounts. To the extent provided for in any
Purchased Item, the Seller shall, consistent with the standard set forth in
Subsection 6.1(b), collect all payments with respect to amounts due for taxes,
assessments and insurance premiums relating to such Purchased Item and remit
such amounts to the appropriate Governmental Authority or insurer on or prior to
the date such payments are due.

         SECTION 6.7 REALIZATION UPON DEFAULTED PURCHASED ITEMS.

         The Seller shall, to the extent consistent with the standard set forth
in Subsection 6.1(b), use reasonable efforts to repossess or otherwise
comparably convert the ownership of any Underlying Mortgaged Property relating
to a Defaulted Mortgage Asset and will act as sales and processing agent for
such Underlying Mortgaged Property that it repossesses. Consistent with
Subsection 6.1(b), the Seller shall follow such other practices and procedures
that it deems necessary or advisable and as are customary and usual in its
servicing of contracts and other actions by the Seller in order to realize upon
such Underlying Mortgaged Property, which practices and procedures may include
reasonable efforts to enforce all obligations of Borrowers and repossessing and
selling such Underlying Mortgaged Property at public or private sale in
circumstances other than those described in the preceding sentence. In any case
in which any such Underlying Mortgaged Property has suffered damage, the Seller
shall not, unless required by the applicable Mortgage Loan Documents, expend
funds in connection with any repair or toward the repossession of such
Underlying Mortgaged Property unless it reasonably determines that such repair
and/or repossession shall increase the recoveries by an amount greater than the
amount of such expenses. The Seller shall remit to the Collection Account the
recoveries received in connection with the sale or disposition of Underlying
Mortgaged Property relating to a Defaulted Mortgage Asset. The Seller shall
consult with the Purchaser prior to taking any action under this Section 6.7 and
shall take only those actions as the Purchaser may approve in its sole
discretion,

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       73
<PAGE>

         SECTION 6.8 MAINTENANCE OF INSURANCE POLICIES.

         The Seller shall consistent with the standard set forth in Subsection
6.1(b) ensure that each Borrower maintains an insurance policy with respect to
any Underlying Mortgaged Property in an amount at least equal to the sum of the
Purchase Price of the related Purchased Item and shall ensure that each such
insurance policy names the Purchaser as loss payee and as an insured thereunder
and that all of the Seller's right, title and interest therein is fully assigned
to the Purchaser. Additionally, the Seller shall require that each Borrower
maintain property damage liability insurance during the term of each Purchased
Item in amounts and against risks customarily insured against by the Borrower on
property owned by it. If a Borrower fails to maintain property damage insurance,
the Seller may, in its discretion, purchase and maintain such insurance on
behalf of, and at the expense of, the Borrower. In connection with its
activities as the Seller, the Seller agrees to present, on behalf of the
Purchaser, claims to the insurer under each insurance policy and any such
liability policy, and to settle, adjust and compromise such claims, in each
case, consistent with the terms of each Purchased Item. The Seller's insurance
policies with respect to the Underlying Mortgaged Property shall insure against
liability for physical damage relating to such property in accordance with the
requirements of Subsection 6.1(b). Until the Purchased Items are repurchased by
the Seller, the Seller hereby disclaims any and all right, title and interest in
and to any insurance policy and insurance proceeds with respect to any
Underlying Mortgaged Property, including any insurance policy with respect to
which it is named as loss payee and as an insured, and agrees that it has no
equitable, beneficial or other interest in the insurance polices and insurance
proceeds other than being named as loss payee and as an insured. The Seller
acknowledges that, with respect to the insurance policies and insurance proceeds
thereof, it is acting solely in the capacity as agent for the Purchaser.

         SECTION 6.9 TERMINATION EVENT.

         If the servicer of the Purchased Items is the Seller, upon the
occurrence of a Termination Event, the Purchaser shall have the right to
terminate the Seller as the servicer of the Purchased Items and transfer
servicing to its designee, at no cost or expense to the Purchaser, at any time
thereafter. If the servicer of the Purchased Items is not the Seller, the
Purchaser shall have the right, as contemplated in the applicable Servicer
Notice, upon the occurrence of a Termination Event, to terminate any applicable
Servicing Agreement and transfer servicing to its designee, at no cost or
expense to the Purchaser, it being agreed that the Seller will pay any and all
fees required to terminate such Servicing Agreement and to effectuate the
transfer of servicing to the designee of the Purchaser. The Seller shall fully
cooperate and shall cause all Servicers to fully cooperate with the Purchaser in
transferring the servicing of the Purchased Items to the Purchaser's designee.

         SECTION 6.10 MODIFICATION.

         Unless otherwise agreed to by the Purchaser in its reasonable
discretion until the repurchase of any Purchased Item, the Seller and the
Servicers shall have no right to waive, amend, modify or alter the material
terms of such Purchased Item and the Seller shall have no

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       74
<PAGE>

obligation or right to repossess such Purchased Item or substitute another
Purchased Item, in each case except as provided in the Custodial Agreement.

         SECTION 6.11 INSPECTION.

         In the event the Seller or its Affiliate is servicing the Purchased
Items, the Seller shall permit the Purchaser to inspect the Seller's or its
Affiliate's servicing facilities, as the case may be, for the purpose of
satisfying the Purchaser that that Seller or its Affiliate, as the case may be,
has the ability to service the Purchased Items as provided in this Agreement.

         SECTION 6.12 SERVICING COMPENSATION.

         As compensation for its servicing activities hereunder and
reimbursement for its expenses, the Seller shall be entitled to receive a
servicing fee to the extent of funds available therefor in the amount of 25
basis points per annum to be paid monthly (the "Servicing Fee").

         SECTION 6.13 PAYMENT OF CERTAIN EXPENSES BY SERVICER.

         The Seller and any Servicer will be required to pay all expenses
incurred by them in connection with their activities under this Agreement,
including fees and disbursements of independent accountants, Taxes imposed on
the Seller or the Servicers, expenses incurred in connection with payments and
reports pursuant to this Agreement, and all other fees and expenses not
expressly stated under this Agreement for the account of the Seller. The Seller
shall be required to pay all reasonable fees and expenses owing to any bank or
trust company in connection with the maintenance of the Collection Account and
the Operating Account. The Seller shall be required to pay such expenses for its
own account and shall not be entitled to any payment therefor other than the
Servicing Fee.

         SECTION 6.14 POOLING AND SERVICING AGREEMENTS.

         Notwithstanding the provisions of this Article VI, to the extent the
Purchased Items are serviced by a PSA Servicer (other than the Seller or any
Servicer) under a Pooling and Servicing Agreement, (a) the standards for
servicing those Purchased Items shall be those set forth in the applicable
Pooling and Servicing Agreement, (b) the Seller shall enforce its rights and
interests under such agreements for and on behalf of the Purchaser, (c) the
Seller shall instruct the applicable PSA Servicer to deposit all Income received
in respect of the Purchased Items into the Collection Account within one (1)
Business Day of the date the PSA Servicer is obligated to make payments under
the applicable Pooling and Servicing Agreement, (d) prior to a Termination
Event, the Seller shall not take any action or fail to take any action or
consent to any action or inaction under any Pooling and Servicing Agreement
where the effect of such action or inaction would prejudice the interests of the
Purchaser, (e) the Seller will not consent to any change or modification to any
payment dates, interests rates, fees, payments of principal or interest,
maturity dates, restrictions on Indebtedness or any monetary term or release any
Borrowers, guarantors or collateral without the consent of the Purchaser, and,
(f) following a Termination Event, the Purchaser shall be entitled to exercise
any and all rights of the Seller under such Pooling and Servicing Agreements as
such rights relate to the Purchased Items.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       75
<PAGE>

         SECTION 6.15 SERVICER DEFAULT.

         Any material breach by the Seller, any of its Servicers or the PSA
Servicer of the obligations contained in this Article VI or in Subsections
2.9(f) and 5.1(gg) shall constitute a "Servicer Default".

                                   ARTICLE VII

                                   [RESERVED]

                                  ARTICLE VIII

                                SECURITY INTEREST

         SECTION 8.1 SECURITY INTEREST.

         (a) Each of the following items or types of property, whether now owned
or hereafter acquired, now existing or hereafter created and wherever located,
is hereinafter referred to as the Purchased Items (the "Purchased Items"): all
Purchased Assets, the Equity Interests, all rights and security interests under
each Purchase Agreement (but not the obligations thereunder) to the extent those
rights relate to the Purchased Assets, all Mortgage Loan Documents, all Mortgage
Asset Files, including, without limitation, all promissory notes, all Security
Agreements relating to the Purchased Assets and any other collateral pledged or
otherwise relating to such Purchased Assets, together with all files, documents,
instruments, surveys, certificates, correspondence, appraisals, computer
programs, computer storage media, accounting records and other books and records
relating thereto, all mortgage guaranties and insurance (issued by governmental
agencies or otherwise) and any mortgage insurance certificate or other document
evidencing such mortgage guaranties or insurance relating to any Purchased
Asset, all servicing fees to which such Seller is entitled and servicing and
other rights relating to the Purchased Assets, all Servicing Agreements,
Servicing Records, Servicing Files and Servicer Accounts established pursuant to
any Servicing Agreement, Pooling and Servicing Agreement or otherwise and all
amounts on deposit therein, from time to time, all rights of the Seller under
any Pooling and Servicing Agreements relating to the Purchased Assets, all other
agreements or contracts relating to, constituting, or otherwise governing, any
or all of the foregoing to the extent they relate to the Purchased Assets,
including the right to receive principal and interest payments and any related
fees, breakage fees, late fees and penalties with respect to the Purchased
Assets and the right to enforce such payments, insurance policies and the rights
to any insurance proceeds, the Collection Account and all monies, cash,
deposits, securities or investment property from time to time on deposit in the
Collection Account, or any collection account, escrow account, collateral
account or lock - box account related to the Purchased Items, rights of the
Seller under any letter of credit, guarantee, or other credit support or
enhancement related to the Purchased Items, any Interest Rate Protection
Agreements relating to the Purchased Assets, all "general intangibles",
"accounts", "chattel paper", "deposit accounts", "instruments", "securities" and
"investment

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       76
<PAGE>

property" as defined in the Uniform Commercial Code as in effect from time to
time relating to or constituting any and all of the foregoing, and any and all
replacements, substitutions, distributions on or proceeds of any and all of the
foregoing.

         (b) The Purchaser and the Seller intend that the Transactions hereunder
be sales to the Purchaser of the Purchased Assets and not loans from the
Purchaser to the Seller secured by the Purchased Assets. However, in order to
preserve the Purchaser's rights under this Agreement in the event that a court
or other forum recharacterizes the Transactions hereunder as loans and as
security for the repayment of the Aggregate Unpaids and performance by the
Seller of all of the Seller's obligations to the Purchaser hereunder and under
the Repurchase Documents and the Transactions entered into hereunder
(collectively, the "Repurchase Obligations") and Seller - Related Obligations,
the Seller hereby assigns, pledges and grants a security interest in all of its
right, title and interest in, to and under the Purchased Items to the Purchaser
to secure the Repurchase Obligations and Seller - Related Obligations,
including, without limitation, the repayment of all amounts owing to the
Purchaser hereunder. The assignment, pledge and grant of security interest
contained herein shall be, and the Seller hereby represents and warrants to the
Purchaser that it is, a first priority perfected security interest. The Seller
agrees to mark its computer records and tapes to evidence the interests granted
to the Purchaser hereunder. All Purchased Items shall secure the payment of all
obligations of the Seller now or hereafter existing under this Agreement and the
other Repurchase Documents, including, without limitation, the Seller's
obligation to repurchase Purchased Assets, or if such obligation is so
recharacterized as a loan, to repay such loan for the Repurchase Price and to
pay the Aggregate Unpaids and any and all other amounts owing to the Purchaser
hereunder.

         (c) Pursuant to the Custodial Agreement, the Custodian shall hold the
Mortgage Asset Files as exclusive bailee pursuant to the terms of the Custodial
Agreement and shall deliver the Trust Receipts to the Purchaser, each such Trust
Receipt to reflect that the Custodian has reviewed such Mortgage Asset Files in
the manner and to the extent required by the Custodial Agreement and identifying
any deficiencies in such Mortgage Asset Files as so reviewed.

         (d) The assignment under this Section 8.1 does not constitute and is
not intended to result in a creation or an assumption by the Purchaser of any
obligation of the Seller or any other Person in connection with any or all of
the Purchased Items or under any agreement or instrument relating thereto.
Anything herein to the contrary notwithstanding, (i) the Seller shall remain
liable under the Purchased Assets to the extent set forth therein to perform all
of its duties and obligations thereunder to the same extent as if this Agreement
had not been executed, (ii) the exercise by the Purchaser of any of its rights
in the Purchased Assets shall not release the Seller from any of its duties or
obligations under the Purchased Assets, and (iii) the Purchaser shall not have
any obligations or liability under the Purchased Assets by reason of this
Agreement, nor shall the Purchaser be obligated to perform any of the
obligations or duties of the Seller thereunder or to take any action to collect
or enforce any claim for payment assigned hereunder.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       77
<PAGE>

         SECTION 8.2 RELEASE OF LIEN ON PURCHASED ASSETS.

         At such time as any Purchased Asset is repurchased in accordance with
this Agreement, and the Repurchase Price and all other amounts due with respect
thereto have been paid in full, the Purchaser will, to the extent requested by
the Seller, release its interest in such Purchased Asset and any related
Purchased Items; provided, that, the Purchaser will make no representation or
warranty, express or implied, with respect to any such Purchased Asset or
Purchased Items in connection with such release, except that the Purchaser shall
represent and warrant that it has not assigned, conveyed, pledged or otherwise
transferred such Purchased Asset or Purchased Items to any other Person.

         SECTION 8.3 FURTHER ASSURANCES.

         The provisions of Section 13.12 shall apply to the security interest
granted under Section 8.1 as well as to the Transactions hereunder.

         SECTION 8.4 REMEDIES.

         Upon the occurrence of a Termination Event, the Purchaser shall have,
with respect to the security interest in the Purchased Items granted pursuant to
Section 8.1, and in addition to all other rights and remedies available to the
Purchaser under this Agreement or other Applicable Law, all rights and remedies
of a secured party upon default under the UCC.

         SECTION 8.5 WAIVER OF CERTAIN LAWS.

         The Seller agrees, to the full extent that it may lawfully so agree,
that neither it nor anyone claiming through or under it will set up, claim or
seek to take advantage of any appraisement, valuation, stay, extension or
redemption law now or hereafter in force in any locality where any Purchased
Items may be situated in order to prevent, hinder or delay the enforcement or
foreclosure of this Agreement, or the absolute sale of any of the Purchased
Items or any part thereof, or the final and absolute putting into possession
thereof, immediately after such sale, of the purchasers thereof, and each of the
Seller, for itself and all who may at any time claim through or under it, hereby
waives, to the full extent that it may be lawful so to do, the benefit of all
such laws and any and all right to have any of the properties or assets
constituting the Purchased Items marshaled upon any such sale, and agrees that
the Purchaser or any court having jurisdiction to foreclose the security
interests granted in this Agreement may sell the Purchased Items as an entirety
or in such parcels as the Purchaser or such court may determine.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       78
<PAGE>

                                   ARTICLE IX

                                POWER OF ATTORNEY

         SECTION 9.1 PURCHASER'S APPOINTMENT AS ATTORNEY - IN - FACT.

         (a) Following the occurrence and during the continuance of a
Termination Event, the Seller hereby irrevocably constitutes and appoints the
Purchaser and any officer or agent thereof, with full power of substitution, as
its true and lawful attorney - in - fact with full irrevocable power and
authority in the place and stead of the Seller and in the name of the Seller or
in its own name, from time to time in the Purchaser's discretion, for the
purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments that may
be reasonably necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, the Seller
hereby gives the Purchaser the power and right, on behalf of the Seller, without
assent by, but with notice to, the Seller, to do the following (in each case to
the extent the Seller is not prohibited by Applicable Law or any applicable
Contractual Obligation):

             (i) in the name of the Seller, or in its own name, or otherwise, to
         take possession of and endorse and collect any checks, drafts, notes,
         acceptances or other instruments for the payment of moneys due under
         any mortgage insurance or with respect to any other Purchased Items and
         to file any claim or to take any other action or proceeding in any
         court of law or equity or otherwise deemed appropriate by the Purchaser
         for the purpose of collecting any and all such moneys due under any
         such mortgage insurance or with respect to any other Purchased Items
         whenever payable;

             (ii) to pay or discharge taxes and Liens levied or placed on or
         threatened against the Purchased Items;

             (iii) (A) to direct any party liable for any payment under any
         Purchased Items to make payment of any and all moneys due or to become
         due thereunder directly to the Purchaser or as the Purchaser shall
         direct; (B) to ask or demand for, collect, receive payment of and
         receipt for, any and all moneys, claims and other amounts due or to
         become due at any time in respect of or arising out of any Purchased
         Items; (C) to sign and endorse any invoices, assignments,
         verifications, notices and other documents in connection with any
         Purchased Items; (D) to commence and prosecute any suits, actions or
         proceedings at law or in equity in any court of competent jurisdiction
         to collect the Purchased Items or any proceeds thereof and to enforce
         any other right in respect of any Purchased Items; (E) to defend any
         suit, action or proceeding brought against the Seller with respect to
         any Purchased Items; (F) to settle, compromise or adjust any suit,
         action or proceeding described in clause (E) above and, in connection
         therewith, to give such discharges or releases as the Purchaser may
         deem appropriate, provided that same does not impose any civil or
         criminal liability on the Seller or the Guarantor; and (G) generally,
         to sell, transfer, pledge and make any agreement with respect to or
         otherwise deal with any Purchased Items as fully and completely as
         though the Purchaser were the absolute owner thereof for all purposes,
         and to do, at the Purchaser's option and

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       79
<PAGE>

         the Seller's expense, at any time, and from time to time, all acts and
         things that the Purchaser deems necessary to protect, preserve or
         realize upon the Purchased Items and the Purchaser's Liens thereon and
         to effect the intent of this Agreement, all as fully and effectively as
         such Seller might do;

                  (iv) to direct the actions of the Custodian with respect to
         the Purchased Items under the Custodial Agreement; and

                  (v) to execute, from time to time, in connection with any sale
         provided for in Section 10.2, any endorsements, assignments or other
         instruments of conveyance or transfer with respect to the Purchased
         Items.

         The Seller hereby ratifies all that said attorneys shall lawfully do or
cause to be done by virtue hereof. This power of attorney is a power coupled
with an interest and shall be irrevocable.

         (b) The powers conferred on the Purchaser hereunder are solely to
protect the Purchaser's interests in the Purchased Items and shall not impose
any duty upon it to exercise any such powers. The Purchaser shall be accountable
only for amounts that it actually receives as a result of the exercise of such
powers, and neither the Purchaser nor any of its officers, directors, employees
or agents shall be responsible to the Seller for any act or failure to act
hereunder.

                                    ARTICLE X

                               TERMINATION EVENTS

         SECTION 10.1 TERMINATION EVENTS.

         The following events shall be Termination Events ("Termination Events")
hereunder:

         (a) the aggregate Repurchase Price for all Transactions outstanding on
any day exceeds the Maximum Amount and the same continues unremedied for two (2)
Business Days after notice from the Purchaser; provided, however, during the
period of time that such event remains unremedied, no additional Transaction
will be made under this Agreement; or

         (b) a Servicer Default occurs and is continuing; or

         (c) the Facility Maturity Date shall have occurred; or

         (d) an Insolvency Event relating to the Seller, the Guarantor or any
Affiliate of the Seller or the Guarantor shall have occurred; or

         (e) the Seller or the Guarantor shall become required to register as an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended (the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       80
<PAGE>

"40 Act") or the arrangements contemplated by the Repurchase Documents shall
require registration as an "investment company" within the meaning of the 40
Act; or

         (f) a regulatory, tax or accounting body has ordered that the
activities of the Seller or the Guarantor of the Seller or Guarantor
contemplated in the Repurchase Documents be terminated or, as a result of any
other event or circumstance, the activities of the Seller or the Guarantor
contemplated in the Repurchase Documents may reasonably be expected to cause the
Seller or the Guarantor to suffer materially adverse regulatory, accounting or
tax consequences; or

         (g) there shall exist any event or occurrence that has caused a
Material Adverse Effect; or

         (h) (i) the Internal Revenue Service shall file notice of a Lien
pursuant to Section 6323 of the Code with regard to any assets of the Seller,
the Guarantor or the Pledgor, and such Lien shall not have been released within
five (5) Business Days; or

         (i) any material adverse change in the credit quality of the Seller or
the Guarantor shall occur; or

         (j) [RESERVED]; or

         (k) (i) any Repurchase Document, or any Lien or security interest
         granted thereunder, shall (except in accordance with its terms), in
         whole or in part, terminate, cease to be effective or cease to be the
         legally valid, binding and enforceable obligation of the Seller, the
         Guarantor or the Pledgor, or

             (ii) the Seller, the Guarantor, the Pledgor or any other party
         shall, directly or indirectly, contest in any manner the effectiveness,
         validity, binding nature or enforceability of any Repurchase Document
         or any Lien or security interest thereunder, or

             (iii) the Purchased Items shall not have been sold to the
         Purchaser, or the Liens contemplated under the Repurchase Documents
         shall cease or fail to be first priority perfected Liens on any
         Purchased Items or the Equity Interests in favor of the Purchaser or
         shall be Liens in favor of any Person other than the Purchaser; or

         (l) the Seller, the Guarantor or the Pledgor shall have failed to
observe or perform in any material respect any of the covenants or agreements of
the Seller, the Guarantor or the Pledgor set forth in this Agreement or the
other Repurchase Documents to which the Seller, the Guarantor or the Pledgor is
a party and the same continues unremedied for a period of twenty (20) days after
the earlier to occur of (i) the date on which written notice of such failure
requiring the same to be remedied shall have been given to the Seller, the
Guarantor or the Pledgor by the Purchaser, and (ii) the date on which the
Seller, the Guarantor or the Pledgor becomes aware thereof (provided, however,
in the case of a failure which is capable of cure but cannot reasonably be cured
within such twenty (20) day period (other than the payment of

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       81
<PAGE>

money), and provided the Seller or the Guarantor shall have timely commenced to
cure such failure within such twenty (20) day period (with evidence of same
delivered to the Purchaser) and thereafter diligently and expeditiously proceeds
to cure the same, such twenty (20) day period shall be extended for an
additional twenty (20) day period); or

         (m) any representation, warranty or certification made by the Seller,
the Guarantor or the Pledgor in this Agreement or any Repurchase Document or in
any certificate delivered pursuant to this Agreement or any Repurchase Document
shall prove to have been incorrect in any material respect when made and that
continues to be unremedied for a period of twenty (20) Business Days after the
earlier to occur of (i) the date on which written notice of such incorrectness
requiring the same to be remedied shall have been given to the Seller, the
Guarantor or the Pledgor by the Purchaser, and (ii) the date on which the
Seller, the Guarantor or the Pledgor becomes aware thereof; or

         (n) the Seller shall have failed to give instructions or notice to the
Purchaser as required by this Agreement, or to deliver any required reports
hereunder, on or before the date such instruction, notice or report is required
to be made or given, as the case may be, under the terms of this Agreement and
such failure continues unremedied for a period of two (2) Business Days after
the earlier to occur of (i) the date on which written notice of such failure
requiring the same to be remedied shall have been given to the Seller by the
Purchaser and (ii) the date on which the Seller becomes aware thereof; or

         (o) the Seller shall have failed to make any payment due with respect
to recourse debt or other obligations or an event or condition shall have
occurred that would permit acceleration of such recourse debt or other
obligations whether or not such event or condition has been waived; or

         (p) the Seller shall default in the payment of any Repurchase Price due
or any amount due under Section 2.8 or any other provision of this Agreement or
the Repurchase Documents when due (whether at stated maturity, upon acceleration
or at mandatory or optional prepayment) or the Seller's, any Servicer's or any
PSA Servicer's failure to deposit to the Collection Account all Income as
required by Subsection 5.1(f); or

         (q) the Seller shall default in the payment of any other amount payable
by it hereunder or under any other Repurchase Document after notification by the
Purchaser of such default, and such default shall have continued unremedied for
two (2) Business Days; or

         (r) a final judgment or judgments for the payment of money in excess of
$750,000 in the aggregate shall be rendered against the Seller, the Guarantor or
any of their Affiliates by one (1) or more courts, administrative tribunals or
other bodies having jurisdiction, and the same shall not be satisfied,
discharged (or provision shall not be made for such discharge) or bonded, or a
stay of execution thereof shall not be procured, within thirty (30) days from
the date of entry thereof; or

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       82
<PAGE>

         (s) the Seller shall grant, or suffer to exist, any Lien on any
Purchased Item (except Permitted Liens) or the Pledgor shall grant, permit or
suffer to exist any Lien on any portion of the Equity Interests; or

         (t) the Seller, the Guarantor or any of their Affiliates shall be in
default under (i) any Indebtedness or Guarantee Obligation of the Seller, the
Guarantor or of their Affiliates, which default (A) involves the failure to pay
a matured obligation, or (B) permits the acceleration of the maturity of
obligations by any other party to or beneficiary with respect to such
Indebtedness, (ii) any other material Contractual Obligation to which the
Seller, the Guarantor or any of their Affiliates is a party, which default (A)
involves the failure to pay a matured obligation, or (B) permits the
acceleration of the maturity of obligations by any other party to or beneficiary
of such contract, or (iii) any Seller - Related Obligation; or

         (u) [RESERVED]; or

         (v) (i) the Seller, the Guarantor or an ERISA Affiliate shall engage in
any "prohibited transaction" (as defined in Section 406 of ERISA or Section 4975
of the Code) involving any Benefit Plan, (ii) any material "accumulated funding
deficiency" (as defined in Section 302 of ERISA), whether or not waived, shall
exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall
arise on the assets of the Seller, the Guarantor or any ERISA Affiliate, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Plan, which Reportable Event or commencement of proceedings or
appointment of a trustee is, in the reasonable opinion of the Purchaser, likely
to result in the termination of such Plan for purposes of Title IV of ERISA,
(iv) any Plan shall terminate for purposes of Title IV of ERISA, (v) the Seller,
the Guarantor or any ERISA Affiliate shall, or in the reasonable opinion of the
Purchaser is likely to, incur any liability in connection with a withdrawal
from, or the insolvency or reorganization of, a Multiemployer Plan, or (vi) any
other event or condition shall occur or exist with respect to a Plan; and in
each case in clauses (i) through (vi) above, such event or condition, together
with all other such events or conditions, if any, could reasonably be expected
to have a Material Adverse Effect; or

         (w) the Seller fails to transfer Purchased Assets on the applicable
Purchase Date or fails to repurchase Purchased Assets on the applicable
Repurchase Date; or

         (x) the Pledgor shall cease to own directly 100% of the issued and
outstanding Capital Stock of the Seller and/or the Guarantor shall cease to own
indirectly 72% of the issued and outstanding Capital Stock of the Pledgor; or

         (y) the Seller, the Guarantor or the Pledgor shall admit its inability
to, or its intentions not to, perform its obligations, covenants or agreements
under any Repurchase Document.

         For the purposes of Subsections 10.1(d), (r) and (t) and the next
sentence and not with respect to any other provision of this Agreement, the
percentage used in the term Affiliate shall be 50% instead of 20%. Subject to
the preceding sentence, upon the occurrence of any event described in
Subsections 10.1(d), (r) or (t) with respect to any Affiliate, including any
Person that

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       83
<PAGE>

 becomes an Affiliate of the Seller, the Pledgor or the Guarantor as
a result of an exercise by the Seller, the Pledgor or the Guarantor of its
remedies in connection with a pledge to the Seller, the Pledgor or the Guarantor
of interests in such Person, the Seller shall promptly notify the Purchaser of
same in writing and the Purchaser will make a determination in its reasonable
discretion and within a reasonable period of time as to whether such event shall
constitute a Termination Event.

         SECTION 10.2 REMEDIES.

         (a) If a Termination Event occurs, the following rights and remedies
are available to the Purchaser; provided, that a Termination Event shall be
deemed to be continuing unless expressly waived by the Purchaser in writing.

             (i) At the option of the Purchaser, exercised by written notice to
         the Seller (which option shall be deemed to have been exercised, even
         if no notice is given, immediately upon the occurrence of an Insolvency
         Event of the Seller, the Guarantor or any of their Affiliates), the
         Repurchase Date for each Transaction hereunder, if it has not already
         occurred, shall be deemed immediately to occur (except that, in the
         event that the Purchase Date for any Transaction has not yet occurred
         as of the date of such exercise or deemed exercise, such Transaction
         shall be deemed immediately cancelled). The Purchaser shall (except
         upon the occurrence of an Insolvency of the Seller, the Guarantor or
         any of their Affiliates) give notice to the Seller of the exercise of
         such option as promptly as practicable.

             (ii) If the Purchaser exercises or is deemed to have exercised the
         option referred to in Subsection 10.2(a)(i),

                           (A) (1) the Seller's obligations in such Transactions
                  to repurchase all Purchased Items, at the Repurchase Price
                  therefor on the Repurchase Date, and, without duplication, to
                  pay the Aggregate Unpaids and all other amounts owed by the
                  Seller hereunder and under the other Repurchase Documents,
                  shall thereupon become immediately due and payable, (2) all
                  Income paid after such exercise or deemed exercise shall be
                  retained by the Purchaser and applied to the aggregate unpaid
                  Repurchase Price, the Aggregate Unpaids and any other amounts
                  owed by the Seller hereunder and under the other Repurchase
                  Documents, and (3) the Seller shall immediately deliver to the
                  Purchaser any Purchased Items subject to such Transactions
                  then in the Seller's possession or control; and

                           (B) all Income actually received by the Purchaser
                  pursuant to Section 2.8 (excluding any Late Payment Fees paid
                  pursuant to Subsection 2.5(a)) shall be applied to the
                  aggregate unpaid Repurchase Price and Aggregate Unpaids and
                  any other amounts owed by the Seller hereunder or the other
                  Repurchase Documents.

              (iii) Upon the occurrence of one or more Termination Events, and
         subject to Section 6.14, the Purchaser shall have the right to obtain
         physical possession of the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       84
<PAGE>

         Servicing Records (subject to the provisions of the Custodial
         Agreement), the Servicing Files and all other files of the Seller
         relating to the Purchased Items and all documents relating to the
         Purchased Items which are then or may thereafter come into the
         possession of the Seller or any third party acting for the Seller, and
         the Seller shall deliver to the Purchaser such assignments as the
         Purchaser shall request, and the Purchaser shall have the right to
         appoint any Person to act as the Servicer for the Purchased Assets. The
         Purchaser shall be entitled to specific performance of all agreements
         of the Seller contained in the Repurchase Documents.

                  (iv) At any time after the second (2nd) Business Day following
         notice to the Seller (which notice may be the notice given under
         Subsection 10.2(a)(i)), in the event the Seller has not repurchased all
         Purchased Items, the Purchaser may (A) immediately sell, without demand
         or further notice of any kind, at a public or private sale and at such
         price or prices as the Purchaser may deem reasonably satisfactory any
         or all Purchased Items subject to such Transactions hereunder and apply
         the proceeds thereof to the aggregate unpaid Repurchase Price, the
         Aggregate Unpaids and any other amounts owed by the Seller hereunder
         and under the other Repurchase Documents, or (B) in its sole
         discretion, elect, in lieu of selling all or a portion of such
         Purchased Items, to give the Seller credit for such Purchased Items in
         an amount equal to the Market Value of the Purchased Items against the
         aggregate unpaid Repurchase Price, the Aggregate Unpaids and any other
         amounts owing by the Seller hereunder and under the other Repurchase
         Documents. The proceeds of any disposition of Purchased Items shall be
         applied first to the costs and expenses incurred by the Purchaser in
         connection with the Seller's default; second to the costs of related
         covering and/or related hedging transactions; third to the Repurchase
         Price; fourth to the Aggregate Unpaids and any other amounts owed by
         the Seller hereunder or under the other Repurchase Documents; and fifth
         to the Seller.

                  (v) The Seller agrees that the Purchaser may obtain an
         injunction or an order of specific performance to compel the Seller to
         fulfill any of its obligations as set forth in Article X if the Seller
         fails or refuses to perform its obligations as set forth therein.

                  (vi) The Seller shall be liable to the Purchaser, payable as
         and when incurred by the Purchaser, for (A) the amount of all
         reasonable actual out-of-pocket expenses, including legal or other
         expenses incurred by the Purchaser in connection with or as a
         consequence of a Termination Event, and (B) all reasonable costs
         incurred in connection with hedging or covering transactions.

                  (vii) The Purchaser shall have, in addition to its rights
         hereunder, any rights otherwise available to it under any other
         agreement or Applicable Law.

         (b) The Purchaser may exercise one or more of the remedies available to
the Purchaser immediately upon the occurrence of a Termination Event and, except
to the extent provided in Subsections 10.2(a)(i) and 10.2(a)(iv), at any time
thereafter without notice to the Seller. All rights and remedies arising under
this Agreement, as amended from time to time, are cumulative and not exclusive
of any other rights or remedies that the Purchaser may have.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       85
<PAGE>

         (c) The Purchaser may enforce its rights and remedies hereunder without
prior judicial process or hearing, and the Seller hereby expressly waives any
defenses the Seller might otherwise have to require the Purchaser to enforce its
rights by judicial process. The Seller also waives any defense (other than a
defense of payment or performance) the Seller might otherwise have arising from
the use of nonjudicial process, enforcement and sale of all or any portion of
the Purchased Items, or from any other election of remedies. The 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.

         (d) To the extent permitted by Applicable Law, the Seller shall be
liable to the Purchaser for interest on any amounts owing by the Seller
hereunder, from the date the Seller becomes liable for such amounts hereunder
until such amounts are (i) paid in full by the Seller or (ii) satisfied in full
by the exercise of the Purchaser's rights hereunder. Interest on any sum payable
by the Seller to the Purchaser under this Subsection 10.2(d) shall accrue
interest from and after the date of the Termination Event at a rate equal to the
Post-Default Rate.

         (e) In addition to the rights under this Section 10.2, upon a
Termination Event the Purchaser shall no longer be obligated to enter into any
additional Transactions pursuant to any outstanding Confirmation and the
Purchaser shall have the following additional rights if a Termination Event
occurs:

             (i) The Purchaser and the Seller agree and acknowledge that the
         Purchased Assets constitute collateral that may decline rapidly in
         value. Accordingly, notwithstanding anything to the contrary in this
         Agreement, the Purchaser shall not be required to give notice to the
         Seller or any other Repurchase Party prior to exercising any remedy in
         respect of a Termination Event. If no prior notice is given, the
         Purchaser shall give notice to the Seller of the remedies effected by
         the Purchaser promptly thereafter. The Purchaser shall act in good
         faith in exercising its rights pursuant to this section.

             (ii) The Purchaser may, in its sole discretion, elect to hold any
         Purchased Asset for its own account and earn the related interest on
         the full face amount thereof.

         (f) The Purchaser shall have, in addition to its rights hereunder, any
rights otherwise available to it under any other agreement or Applicable Law.

         SECTION 10.3 DETERMINATION OF TERMINATION EVENTS.

         In making a determination as to whether a Termination Event has
occurred, the Purchaser shall be entitled to rely on reports published or
broadcast by media sources believed by the Purchaser to be generally reliable
and on information provided to it by any other sources believed by it to be
generally reliable, provided that (i) the Purchaser reasonably and in good faith
believes such information to be accurate and has taken such steps as may be
reasonable in the circumstances (including consulting with the Seller, the
Pledgor and/or the Guarantor) to attempt to verify such information.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       86
<PAGE>

                                   ARTICLE XI

                                 INDEMNIFICATION

         SECTION 11.1 INDEMNITIES BY THE SELLER.

         (a) The Seller agrees to hold the Purchaser and its Affiliates and the
Purchaser and its Affiliates' officers, directors, shareholders, employees,
agents, Affiliates and advisors (each an "Indemnified Party" and collectively
the "Indemnified Parties") harmless from and indemnify any Indemnified Party
against all liabilities, losses, damages, judgments, costs and expenses of any
kind that may be imposed on, incurred by or asserted against such Indemnified
Party (collectively, the "Indemnified Amounts") relating to or arising out of
this Agreement, the Repurchase Documents or any transaction contemplated hereby
or thereby, or any amendment, supplement or modification of, or any waiver or
consent under or in respect of, this Agreement, the Repurchase Documents or any
transaction contemplated hereby or thereby, that, in each case, results from
anything other than any Indemnified Party's gross negligence or willful
misconduct or, with respect to any Purchased Item that is a Wachovia Asset, for
or in connection with any matters arising from events that occurred prior to the
Original Purchase Date. Without limiting the generality of the foregoing, the
Seller agrees to hold any Indemnified Party harmless from and indemnify such
Indemnified Party against all Indemnified Amounts with respect to all Purchased
Items relating to or arising out of any violation or alleged violation of,
noncompliance with or liability under any law, rule or regulation (including,
without limitation, Environmental Laws) that, in each case, results from
anything other than such Indemnified Party's gross negligence or willful
misconduct. In any suit, proceeding or action brought by an Indemnified Party in
connection with any Purchased Item for any sum owing thereunder, or to enforce
any provisions of any Purchased Item, the Seller will save, indemnify and hold
such Indemnified Party harmless from and against all expense, loss or damage
suffered by reason of any defense, set - off, counterclaim, recoupment or
reduction of liability whatsoever of the account debtor or obligor thereunder
arising out of a breach by the Seller of any obligation thereunder or arising
out of any other agreement, indebtedness or liability at any time owing to or in
favor of such account debtor or obligor or its successors from the Seller. The
Seller also agrees to reimburse an Indemnified Party as and when billed by such
Indemnified Party for all such Indemnified Party's costs, expenses and fees
incurred in connection with the enforcement or the preservation of such
Indemnified Party's rights under this Agreement, the Repurchase Documents and
any transaction contemplated hereby or thereby, including, without limitation,
the reasonable fees and disbursements of its counsel.

         (b) Any amounts subject to the indemnification provisions of this
Section 11.1 shall be paid by the Seller to the Indemnified Party within five
(5) Business Days following such Person's demand therefor.

         (c) The obligations of the Seller under this Section 11.1 shall survive
the resignation or removal of the Purchaser and the termination of this
Agreement.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       87
<PAGE>

                                   ARTICLE XII

                                   [RESERVED]

                                  ARTICLE XIII

                                  MISCELLANEOUS

         SECTION 13.1 AMENDMENTS AND WAIVERS.

         Except as provided in this Section 13.1, no amendment, waiver or other
modification of any provision of this Agreement shall be effective without the
written agreement of the Seller, the Purchaser and the Guarantor. Any waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

         SECTION 13.2 NOTICES, ETC.

         All notices and other communications provided for hereunder shall,
unless otherwise stated herein, be in writing (including telex communication and
communication by facsimile copy) and mailed, telexed, transmitted or delivered,
as to each party hereto, at its address set forth under its name on the
signature pages hereof or at such other address as shall be designated by such
party in a written notice to the other parties hereto. All such notices and
communications shall be effective, upon receipt, or in the case of (a) notice by
mail, five (5) days after being deposited in the United States mail, first class
postage prepaid, (b) notice by telex, when telexed against receipt of answer
back, or (c) notice by facsimile copy, when verbal communication of receipt is
obtained.

         SECTION 13.3 SET-OFFS.

         In addition to any rights and remedies of the Purchaser provided by
this Agreement and by Applicable Law, the Purchaser shall have the right,
without prior notice to Seller or the Guarantor, any such notice being expressly
waived by Seller and the Guarantor to the extent permitted by Applicable Law,
upon any amount becoming due and payable by Seller or the Guarantor to the
Purchaser hereunder, under the Repurchase Documents or otherwise (whether at the
stated maturity, by acceleration or otherwise) to set - off and appropriate and
apply against such amount any and all monies and other property of Seller or the
Guarantor, any and all deposits (general or special, time or demand, provisional
or final), in any currency, and any and all other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, and in each case at any time held or owing by
the Purchaser or any Affiliate thereof to or for the credit or the account of
Seller or the Guarantor. The Purchaser agrees promptly to notify the Seller and
the Guarantor after any such set - off and application made by the Purchaser,
provided that the failure to give such notice shall not affect the validity of
such set-off and application.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       88
<PAGE>

         SECTION 13.4 NO WAIVER; REMEDIES.

         No failure on the part of the Purchaser to exercise, and no delay in
exercising, any right or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right or remedy hereunder preclude
any further exercise thereof or the exercise of any other right. The rights and
remedies herein provided are cumulative and not exclusive of any rights and
remedies provided by law.

         SECTION 13.5 BINDING EFFECT.

         This Agreement shall be binding upon and inure to the benefit of the
Seller, the Purchaser, the Guarantor and their respective successors and
permitted assigns.

         SECTION 13.6 TERM OF THIS AGREEMENT.

         (a) This Agreement, including, without limitation, the Seller's and the
Guarantor's representations, covenants and duties set herein, create and
constitute the continuing obligation of the parties hereto in accordance with
its terms and shall remain in full force and effect until the Aggregate Unpaids
are paid in full; provided, however, that the indemnification and payment
provisions of Article XI, the provisions of Sections 2.5(b), 2.13, 2.14, 13.9,
13.11 and 13.13 and any other provision that by its terms expressly survives
termination, shall be continuing and shall survive any termination of this
Agreement.

         (b) Subject to Subsection 13.6(a), this Agreement may be terminated by
the Purchaser or the Seller upon giving written notice to the other and to the
Guarantor, except that this Agreement shall, notwithstanding such notice, remain
applicable to any Transaction then outstanding.

         SECTION 13.7 GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF
                      OBJECTION TO VENUE.

         THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS
PROVISIONS THEREOF). EACH OF THE PARTIES HERETO HEREBY AGREES TO THE NON -
EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF
NEW YORK. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN
ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

         SECTION 13.8 WAIVER OF JURY TRIAL.

         TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO
HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       89
<PAGE>

RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO
THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT
WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

         SECTION 13.9 COSTS, EXPENSES AND TAXES.

         (a) The Seller agrees to pay as and when billed by the Purchaser all of
the reasonable out - of - pocket costs and expenses incurred by the Purchaser in
connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement, the Repurchase
Documents or any other documents and agreements prepared in connection herewith
or therewith. The Seller agrees to pay as and when billed by the Purchaser all
of the out - of - pocket costs and expenses incurred in connection with the
consummation and administration of the transactions contemplated hereby and
thereby including, without limitation, (i) all the reasonable fees,
disbursements and expenses of counsel to the Purchaser and (ii) all the due
diligence, inspection, testing and review costs and expenses incurred by the
Purchaser with respect to the Purchased Assets under this Agreement, including,
but not limited to, those costs and expenses incurred by the Purchaser and
reimbursable by the Seller pursuant to Subsection 11.1(a) of this Agreement.

         (b) The Seller shall pay on demand any and all stamp, sales, excise and
other taxes and fees payable or determined to be payable in connection with the
execution, delivery, filing and recording of this Agreement, the Repurchase
Documents or the other documents to be delivered hereunder or thereunder or the
funding or maintenance of Transactions hereunder.

         SECTION 13.10 LEGAL MATTERS.

         (a) In the event of any conflict between the terms of this Agreement,
any other Repurchase Document and any Confirmation, the documents shall control
in the following order of priority: first, the terms of the Confirmation shall
prevail, then the terms of this Agreement shall prevail, and then the terms of
the other Repurchase Documents shall prevail.

         (b) Each of the Seller and the Guarantor hereby acknowledges that:

             (i) it has been advised by counsel in the negotiation, execution
         and delivery of the Repurchase Documents;

             (ii) it has no fiduciary relationship with the Purchaser; and

             (iii) no joint venture exists with the Purchaser.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       90
<PAGE>

         SECTION 13.11 RECOURSE AGAINST CERTAIN PARTIES.

         No recourse under or with respect to any obligation, covenant or
agreement (including, without limitation, the payment of any fees or any other
obligations) of the Purchaser or the Guarantor as contained in this Agreement,
the Repurchase Documents or any other agreement, instrument or document entered
into by the Purchaser or the Guarantor any such party pursuant hereto or thereto
or in connection herewith or therewith shall be had against any administrator of
the Purchaser or the Guarantor or any incorporator, Affiliate (direct or
indirect), owner, member, partner, stockholder, officer, director, employee,
agent or attorney of the Purchaser or the Guarantor or of any such
administrator, as such, by the enforcement of any assessment or by any legal or
equitable proceeding, by virtue of any statute or otherwise; it being expressly
agreed and understood that the agreements of the Purchaser or the Guarantor
contained in this Agreement, the Repurchase Documents and all of the other
agreements, instruments and documents entered into by it pursuant hereto or
thereto or in connection herewith or therewith are, in each case, solely the
corporate obligations of the Purchaser or the Guarantor, and that no personal
liability whatsoever shall attach to or be incurred by any administrator of the
Purchaser or the Guarantor or any incorporator, owner, member, partner,
stockholder, Affiliate (direct or indirect), officer, director, employee, agent
or attorney of the Purchaser or the Guarantor, or of any such administrator, as
such, or any other of them, under or by reason of any of the obligations,
covenants or agreements of the Purchaser or the Guarantor contained in this
Agreement or in any other such instruments, documents or agreements, or that are
implied therefrom, and that any and all personal liability of every such
administrator of the Purchaser or the Guarantor and each incorporator, owner,
member, partner, stockholder, Affiliate (direct or indirect), officer, director,
employee, agent or attorney of the Purchaser or the Guarantor, or of any such
administrator, or any of them, for breaches by the Purchaser or the Guarantor of
any such obligations, covenants or agreements, which liability may arise either
at common law or at equity, by statute or constitution, or otherwise, is hereby
expressly waived as a condition of and in consideration for the execution of
this Agreement. The provisions of this Section 13.11 shall survive the
termination of this Agreement.

         SECTION 13.12 PROTECTION OF RIGHT, TITLE AND INTEREST IN THE PURCHASED
                       ASSETS; FURTHER ACTION EVIDENCING TRANSACTIONS.

         (a) The Seller shall cause this Agreement, all amendments hereto and/or
all financing statements and continuation statements and any other necessary
documents covering the right, title and interest of the Purchaser to the
Purchased Items to be promptly recorded, registered and filed, and at all times
to be kept recorded, registered and filed, all in such manner and in such places
as may be required by law fully to preserve and protect the right, title and
interest of the Purchaser hereunder to all property comprising the Purchased
Items. The Seller shall deliver to the Purchaser file - stamped copies of, or
filing receipts for, any document recorded, registered or filed as provided
above, as soon as available following such recording, registration or filing.
The Seller shall execute any and all documents reasonably required to fulfill
the intent of this Subsection 13.12(a).

         (b) The Seller agrees that from time to time, at its expense, it will
promptly execute and deliver all instruments and documents, and take all
actions, that the Purchaser may

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       91
<PAGE>

reasonably request in order to perfect, protect or more fully evidence the
Transactions hereunder and the security interest granted in the Purchased Items,
or to enable the Purchaser to exercise and enforce their rights and remedies
hereunder or under any Repurchase Document.

         (c) If the Seller fails to perform any of its obligations hereunder,
the Purchaser may (but shall not be required to) perform, or cause performance
of, such obligation; and the Purchaser's costs and expenses incurred in
connection therewith shall be payable by the Seller. The Seller irrevocably
appoints the Purchaser as its attorney - in - fact and authorizes the Purchaser
to act on behalf of the Seller (i) to execute on behalf of the Seller as debtor
and to file financing statements necessary or desirable in the Purchaser's sole
discretion to perfect and to maintain the perfection and priority of the
interest in the Purchased Items, and (ii) to file a carbon, photographic or
other reproduction of this Agreement or any financing statement with respect to
the Purchased Items as a financing statement in such offices as the Purchaser in
its sole discretion deems necessary or desirable to perfect and to maintain the
perfection and priority of the interests in the Purchased Items. This
appointment is coupled with an interest and is irrevocable.

         (d) Without limiting the generality of the foregoing, the Seller will
not earlier than six (6) months and not later than three (3) months prior to the
fifth anniversary of the date of filing of the financing statement referred to
in Subsection 3.1(g) or any other financing statement filed pursuant to this
Agreement or in connection with any Transaction hereunder, unless the Aggregate
Unpaids have been paid in full:

             (i) execute and deliver and file or cause to be filed an
         appropriate continuation statement with respect to such financing
         statement; and

             (ii) deliver or cause to be delivered to the Purchaser an opinion
         of the counsel for the Seller, in form and substance reasonably
         satisfactory to the Purchaser, confirming and updating the opinion
         delivered pursuant to Subsection 3.1(h) with respect to perfection and
         otherwise to the effect that the security interest hereunder continues
         to be an enforceable and perfected security interest, subject to no
         other Liens of record except as provided herein or otherwise permitted
         hereunder, which opinion may contain usual and customary assumptions,
         limitations and exceptions.

         SECTION 13.13 CONFIDENTIALITY.

         (a) Each of the Purchaser, the Seller and the Guarantor shall maintain
and shall cause each of its employees and officers to maintain the
confidentiality of this Agreement and all information with respect to the other
parties, including all information regarding the Purchased Items and each
party's business obtained by it or them in connection with the structuring,
negotiating and execution of the transactions contemplated herein, except that
each such party and its officers and employees may (i) disclose such information
to its external accountants, attorneys, investors, potential investors,
Affiliates and the agents of such Persons ("Excepted Persons"); provided,
however, that each Excepted Person shall, as a condition to any such disclosure,
agree for the benefit of the Purchaser, the Seller and the Guarantor that such
information shall be used solely in connection with such Excepted Person's
evaluation of, or

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       92
<PAGE>

relationship with, the Seller, the Guarantor and their Affiliates, (ii) disclose
the existence of the Agreement and the Repurchase Documents, but not the
financial terms thereof, (iii) disclose such information as is required by
Applicable Law, and (iv) disclose the Agreement and such information in any
suit, action, proceeding or investigation (whether in law or in equity or
pursuant to arbitration) involving any of the Repurchase Documents for the
purpose of defending itself, reducing its liability, or protecting or exercising
any of its claims, rights, remedies or interests under or in connection with any
of the Repurchase Documents. It is understood that the financial terms that may
not be disclosed except in compliance with this Subsection 13.13(a) include,
without limitation, all fees and other pricing terms and all Termination Events
and priority of payment provisions.

         (b) Anything herein to the contrary notwithstanding, each of the Seller
and the Guarantor hereby consents to the disclosure of any nonpublic information
with respect to it by the Purchaser to any prospective or actual assignee,
participant or pledgee provided each such Person is informed of the confidential
nature of such information and such Person agrees to be bound by the
confidentiality provisions set forth herein.

         (c) Notwithstanding anything herein to the contrary, the foregoing
shall not be construed to prohibit (i) disclosure of any and all information
that is or becomes publicly known; (ii) disclosure of any and all information
(A) if required to do so by any Applicable Law, (B) to any Governmental
Authority having or claiming authority to regulate or oversee any respects of
the Purchaser's, the Seller's or the Guarantor's business or that of their
respective Affiliates, (C) pursuant to any subpoena, civil investigative demand
or similar demand or request of any court, regulatory authority, arbitrator or
arbitration to which the Purchaser, the Seller or the Guarantor or an officer,
director, employer, shareholder, owner, member, partner, agent, employee or
Affiliate of any of the foregoing is a party, (D) in any preliminary or final
offering circular, registration statement or contract or other document approved
in writing in advance by the Seller and the Guarantor, or (E) to any Affiliate,
independent or internal auditor, agent, employee or attorney of the Custodian
having a need to know the same, provided that the Custodian advises such
recipient of the confidential nature of the information being disclosed and such
Person agrees to be bound by the confidentiality provisions set forth herein; or
(iii) any other disclosure authorized by the Purchaser, the Seller or the
Guarantor, as applicable.

         (d) Notwithstanding anything to the contrary contained herein or in any
related document, all Persons may disclose to any and all Persons, without
limitation of any kind, the federal income tax treatment of any of the
transactions contemplated by this Repurchase Agreement or any other related
document, any fact relevant to understanding the federal tax treatment of such
transactions and all materials of any kind (including opinions or other tax
analyses) relating to such federal income tax treatment.

         SECTION 13.14 EXECUTION IN COUNTERPARTS; SEVERABILITY; INTEGRATION.

         This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts (including by facsimile), each
of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement. In case any
provision in or obligation under this Agreement shall be invalid, illegal

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       93
<PAGE>

or unenforceable in any jurisdiction, the validity, legality and enforceability
of the remaining provisions or obligations, or of such provision or obligation
in any other jurisdiction, shall not in any way be affected or impaired thereby.
This Agreement and any other Repurchase Document executed in connection herewith
contain the final and complete integration of all prior expressions by the
parties hereto and thereto with respect to the subject matter hereof and thereof
and shall constitute the entire agreement among the parties hereto and thereto
with respect to the subject matter hereof and thereof, superseding all prior
oral or written understandings.

         SECTION 13.15 SELLER'S WAIVER OF SETOFF.

         Each of the parties hereto (other than the Purchaser) hereby waives any
right of setoff it may have or to which it may be entitled under this Agreement
from time to time against the Purchaser or its assets.

         SECTION 13.16 ASSIGNMENTS AND PARTICIPATIONS; HYPOTHECATION OF
                       PURCHASED ASSETS.

         (a) Neither the Seller nor the Guarantor may assign any of its rights
or obligations under this Agreement without the prior written consent of the
Purchaser and any attempt by the Seller or the Guarantor to assign any of its
rights or obligations under this Agreement without the prior written consent of
the Purchaser shall be null and void. The Purchaser may upon notice to the
Seller and the Guarantor, and, (i) without the consent of the Seller or the
Guarantor (A) in the case of a Pre - Approved Purchaser or (B) after a
Termination Event, and (ii) with the prior written consent of the Seller and the
Guarantor (not to be unreasonably withheld or delayed) in the case of a Person
that is not a Pre - Approved Purchaser, sell, transfer, assign, pledge or grant
participation interests to any Person in any Transaction, its interest in the
Purchased Assets or any other interest of the Purchaser under this Agreement
(any such entity, a "Transferee"), provided that any assignment effected
pursuant to this Subsection 13.16(a) shall be in respect of Purchased Assets
with a minimum Purchase Price of $5,000,000 (other than in the case of (i) an
assignment of all of the interests then held by the Purchaser (or a Transferee)
or (ii) a transfer to an Affiliate of the Purchaser (or a Transferee). Each of
the Seller and the Guarantor agrees to cooperate with the Purchaser, at the
Purchaser's expense, in connection with any such assignment, transfer, pledge,
participation or sale, and to enter into such restatements of, and amendments,
supplements and other modifications to this Agreement, in order to give effect
to such assignment, transfer, pledge, participation or sale.

         (b) The Purchaser shall have free and unrestricted use of all Purchased
Assets and nothing in this Agreement shall preclude the Purchaser from engaging
in repurchase transactions with the Purchased Assets or otherwise pledging,
transferring, hypothecating, or rehypothecating the Purchased Assets; provided,
however, that the Purchaser shall transfer the Purchased Assets to the Seller on
the applicable Repurchase Date free and clear of any Lien on any of the
Purchased Assets. Nothing contained in this Agreement shall obligate the
Purchaser to segregate any Purchased Assets transferred to the Purchaser by the
Seller.

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       94
<PAGE>

         SECTION 13.17 HEADING AND EXHIBITS.

         The headings herein are for purposes of references only and shall not
otherwise affect the meaning or interpretation of any provision hereof. The
schedules and exhibits attached hereto and referred to herein shall constitute a
part of this Agreement and are incorporated into this Agreement for all
purposes.

         SECTION 13.18 SINGLE AGREEMENTS.

         The Purchaser, the Seller and the Guarantor 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 that each has been entered into
in consideration of the other Transactions. Accordingly, each of the Purchaser,
the Seller and the Guarantor agrees 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.

         SECTION 13.19 DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS.

         The parties acknowledge that they have been advised that:

         (a) in the case of Transactions in which one of the parties is a broker
or dealer registered with the Securities and Exchange Commission ("SEC") under
Section 15 of the Exchange Act, the provisions of the Securities Investor
Protection Act of 1970 ("SIPA") will not provide protection to the other parties
with respect to any Transaction hereunder;

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

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

         (d) in the case of Transactions in which one of the parties is an
"insured depository institution" as that term is defined in Section 1813(c)(2)
of Title 12 of the Code, funds held by the financial institution pursuant to a
Transaction hereunder are not a deposit and therefore are not insured by the
Federal Deposit Insurance Corporation, the Savings Association Insurance Fund or
the Bank Insurance Fund, as applicable.

         SECTION 13.20 INTENT.

         (a) The parties recognize that each Transaction is a "Repurchase
Agreement" as that term is defined in Section 101 of Title 11 of the United
States Code (except insofar as the type of

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       95
<PAGE>

Purchased Assets subject to such Transaction or the term of such Transaction
would render such definition inapplicable) and a "Securities Contract" as that
term is defined in Section 741 of Title 11 of the United States Code (except
insofar as the type of Purchased Assets subject to such Transaction would render
such definition inapplicable).

         (b) The parties agree and acknowledge that if a party hereto is an
"Insured Depository Institution," as such term is defined in the Federal Deposit
Insurance Act, as amended ("FDIA"), then each Transaction hereunder is a
"Qualified Financial Contract," as that term is defined in FDIA and any rules,
orders or policy statements thereunder (except insofar as the type of Purchased
Assets subject to such Transaction would render such definition inapplicable).

         (c) 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 or regulations promulgated thereunder).

         (d) It is understood that any party's right to liquidate Purchased
Assets delivered to it in connection with Transactions hereunder or to exercise
any other remedies pursuant to Section 10.2 is a contractual right to liquidate
such Transaction as described in Sections 555 and 559 of Title 11 of the United
States Code, as amended.

         SECTION 13.21 PERIODIC DUE DILIGENCE REVIEW.

         Each of the Seller and the Guarantor acknowledges that the Purchaser
has the right to perform continuing due diligence reviews with respect to the
Purchased Items for purposes of verifying compliance with the representations,
warranties, covenants, agreements and specifications made hereunder, or
otherwise, and each of the Seller and the Guarantor agrees that upon reasonable
(but no less than one (1) Business Day's) prior notice, unless a Termination
Event shall have occurred, in which case no notice is required, to the Seller or
the Guarantor, as applicable, the Purchaser or its authorized representatives
shall be permitted during normal business hours to examine, inspect, and make
copies and extracts of, the Mortgage Asset Files and any and all documents,
records, agreements, instruments or information relating to such Purchased Items
in the possession or under the control of the Seller, the Guarantor and/or the
Custodian. Each of the Seller and the Guarantor also shall make available to the
Purchaser a knowledgeable financial or accounting officer for the purpose of
answering questions respecting the Mortgage Asset Files and the Purchased Items.
Each of the Seller and the Guarantor shall also make available to the Purchaser
any accountants or auditors of the Seller or the Guarantor to answer any
questions or provide any documents as the Purchaser may require. The Seller will
also cause each of the Servicers and PSA Servicers (to the extent permitted
under the applicable Pooling and Servicing Agreement) to cooperate with the
Purchaser by permitting the Purchaser to conduct due diligence reviews of files
of each such Servicer and PSA Servicer. Without limiting the generality of the
foregoing, the Seller acknowledges that the Purchaser may purchase Purchased
Items from the Seller based solely upon the information provided by the Seller
to the

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       96
<PAGE>

Purchaser in the Seller Asset Schedule and the representations, warranties and
covenants contained herein, and that the Purchaser, at its option, has the right
at any time to conduct a partial or complete due diligence review on some or all
of the Purchased Items purchased in a Transaction, including, without
limitation, ordering new credit reports and new appraisals on the related
Mortgaged Properties and otherwise re - generating the information used to
originate such Purchased Assets. The Purchaser may underwrite such Purchased
Assets itself or engage a mutually agreed upon third party underwriter to
perform such underwriting. Each of the Seller and the Guarantor agrees to
cooperate with the Purchaser and any third party underwriter in connection with
such underwriting, including, but not limited to, providing the Purchaser and
any third party underwriter with access to any and all documents, records,
agreements, instruments or information relating to such Purchased Assets in the
possession, or under the control, of the Seller or the Guarantor. The Purchaser
shall pay all out - of - pocket costs and expenses incurred by the Purchaser not
exceeding $2,500 per Underlying Mortgaged Property in connection with the
Purchaser's activities pursuant to this Section 13.21 ("Due Diligence Costs");
provided that, in the event that an Unmatured Termination Event or Termination
Event shall have occurred, the Seller shall reimburse the Purchaser for all Due
Diligence Costs (without regard to $2,500 cap) incurred by the Purchaser from
and after the date of such Unmatured Termination Event or Termination Event in
connection with the Purchaser's activities pursuant to this Section 13.21.

         SECTION 13.22 USE OF EMPLOYEE PLAN ASSETS.

         (a) If assets of an employee benefit plan subject to any provision
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.

         (b) Subject to the last sentence of Subsection 13.22(a) above, any such
Transaction shall proceed only if the Plan Party furnishes or has furnished to
the other party its most recent available audited statement of its financial
condition and its most recent subsequent unaudited statement of its financial
condition.

         (c) By entering into a Transaction pursuant to this Section 13.22, the
Seller shall be deemed (i) to represent to the Purchaser that since the date of
the Seller's latest such financial statements, there has been no material
adverse change in the Seller's financial condition which Seller has not
disclosed to the Purchaser, and (ii) to agree to provide the Purchaser with
future audited and unaudited statements of its financial condition as they are
issued, so long as it is a Seller in any outstanding Transaction involving a
Plan Party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                          Loan Purchase and Repurchase Agreement
                                                            (Wachovia and Arbor)

                                       97
<PAGE>

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

THE SELLER:                              ARBOR REALTY FUNDING LLC

                                         By: /s/ Frederick Herbst
                                             -----------------------------------
                                         Name: Frederick Herbst
                                         Title: Authorized Signatory

                                         Arbor Realty Funding LLC
                                         c/o Arbor Commercial Mortgage LLC
                                         333 Earle Ovington Boulevard
                                         Uniondale, New York 11553
                                         Attention: Guy Milone, Esq.
                                         Facsimile No.: (516) 832 - 6431
                                         Confirmation No.: (516) 832 - 7431

                  [Signatures Continued on the Following Page]

                                      S-1

<PAGE>

THE PURCHASER:                           WACHOVIA BANK, NATIONAL ASSOCIATION

                                         By:/s/ William J. Cohane
                                            ------------------------------------
                                         Name: _________________________________
                                         Title: ________________________________

                                         Wachovia Bank, National Association
                                         One Wachovia Center, Mail Code: NC0166
                                         301 South College Street
                                         Charlotte, North Carolina  28288
                                         Attention: Marianne Hickman
                                         Facsimile No.: (704) 715 - 0066
                                         Confirmation No.: (704) 715 - 7818

                  [Signatures Continued on the Following Page]

                                      S-2

<PAGE>

THE GUARANTOR:                           ARBOR REALTY TRUST, INC.,
                                         a Maryland corporation

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

                                         Arbor Realty Trust, Inc.
                                         c/o Arbor Commercial Mortgage LLC
                                         333 Earle Ovington Boulevard
                                         Uniondale, New York  11553
                                         Attention: Guy Milone, Esq.
                                         Facsimile No.: (516) 832 - 6431
                                         Confirmation No.: (516) 832 - 7431

                                      S-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]