Document:

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                                                                   Exhibit 10.16

                                     Annex I

                        Supplemental Terms and Conditions

     This Annex I forms a part of the Master Repurchase Agreement dated as of
March 20, 2002 (the "Agreement") between LIQUID FUNDING, LTD. ("Buyer") and LNR
CMBS HOLDINGS CORP. ("Seller"). Capitalized terms used but not defined in this
Annex I shall have the meanings ascribed to them in the Agreement.

1.   Other Applicable Annexes. Please select any/all of the optional Annexes
     below to form a part of the Agreement. The Annexes which are initialed will
     apply hereunder.

                                                                        Initials
                                                                        --------

(a)  Annex III (International Transactions)                             ________
(b)  Annex IV (Party Acting as Agent)                                   ________
(c)  Annex V (Margin for Forward Transactions)                          ________
(d)  Annex VI (Buy/Sell Back Transactions)                              ________
(e)  Annex VII (Transactions Involving Registered Investment Companies) ________

2.   "Margin Notice Deadline" means 10:00 a.m. (New York time).

3.   Margin calls may be made orally by telephone directly to one of the
     individuals set forth on Annex II (but in no event by voice mail), and
     shall be confirmed in writing within two (2) Business Days of such margin
     call, provided however, that the failure to provide such written
     confirmation shall not release any party from satisfying its margin
     maintenance obligations when due.

4.   Definitions. The following definition shall be added to Paragraph 2:

               (u) "Transaction", with respect to this Master Repurchase
               Agreement, means all transactions under this Master Repurchase
               Agreement and does not include transactions under any other
               master repurchase agreement or any other agreement.

5.   Notwithstanding the definition of Purchase Price in Paragraph 2 of the
     Agreement and the provisions of Paragraph 4(a)(i) or 4(b) of the Agreement,
     the parties agree (i) that the Purchase Price will not be increased or
     decreased by the amount of any cash or securities transferred by one party
     to the other pursuant to Paragraph 4(a)(i) or 4(b) of the Agreement and
     (ii) that transfer of such cash shall be treated as if it constituted a
     transfer of Securities (with a Market Value equal to the U.S. dollar amount
     of such cash) pursuant to Paragraph 4(a)(i) or 4(b), as the case may be
     (including for purposes of the definition of "Additional Purchased
     Securities").

6.   The following 2 paragraphs shall be added to Paragraph 9 of the Agreement:

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     (c) In the case of any Transaction for which the Repurchase Date is other
     than the Business Day immediately following the Purchase Date and with
     respect to which Seller does not have any existing right to substitute
     substantially the same Securities for the Purchased Securities, Seller
     shall have the right, subject to the proviso to this sentence, upon notice
     to Buyer, which notice shall be given at or prior to 10 a.m. (New York
     time) on such Business Day, to substitute substantially the same Securities
     for any Purchased Securities; provided, however, that Buyer may elect in
     the exercise of its good faith business judgment, by the close of business
     on the Business Day notice is received, or by the close of the next
     Business Day if notice is given after 10 a.m. (New York time) on such day,
     not to accept such substitution. In the event such substitution is accepted
     by Buyer, such substitution shall be made by Seller's transfer to Buyer of
     such other Securities and Buyer's transfer to Seller of such Purchased
     Securities, and after such substitution, the substituted Securities shall
     be deemed to be Purchased Securities. In the event Buyer elects not to
     accept such substitution, Buyer shall offer Seller the right to terminate
     the Transaction.

     (d) In the event Seller exercises its right to substitute or terminate
     under sub-paragraph (c), Seller shall be obligated to pay to Buyer, by the
     close of the Business Day of such substitution or termination, as the case
     may be, an amount equal to (A) Buyer's actual cost (including all fees,
     expenses and commissions) of (i) entering into replacement transactions;
     (ii) entering into or terminating hedge transactions; and/or (iii)
     terminating transactions or substituting securities in like transactions
     with third parties in connection with or as a result of such substitution
     or termination, and (B) to the extent Buyer determines not to enter into
     replacement transactions, the loss incurred by Buyer directly arising or
     resulting from such substitution or termination. The foregoing amounts
     shall be solely determined and calculated by Buyer in good faith. Upon the
     request of Seller, Buyer shall provide a good faith estimate of such
     amounts which Buyer expects to incur upon Seller's substitution or
     termination under sub-paragraph (c); provided, however, that Buyer's actual
     costs or loss under this paragraph (d) shall not be limited to the amount
     provided to Seller in such estimate.

7.   Mandatory Early Repurchase Date

     (a)    Notwithstanding any provision of the Master Repurchase Agreement,
     and subject to no condition precedent, the tenth Business Day following the
     date on which an "Enforcement Event" (as defined below) occurs shall
     automatically and irrevocably become the Repurchase Date in respect of all
     Transactions hereunder (the "Mandatory Early Repurchase Date"), whether or
     not the Enforcement Event is then continuing. In the event of the
     occurrence of an Enforcement Event, in lieu of the delivery of the
     Repurchase Price by Seller on the Mandatory Early Repurchase Date, Seller
     shall be obliged to pay to Buyer an amount equal to the Repurchase Price as
     of the Mandatory Early Repurchase Date minus the value (positive or
     negative) of any agreement entered into by Buyer for the purpose of hedging
     its interest rate exposure resulting from its entry into each Transaction
     hereunder (the "Hedge Value"). Buyer shall promptly (but, in any event,
     within three (3) Business Days) notify Seller of the occurrence of an
     Enforcement Event and of the resulting Mandatory Early Repurchase Date,
     which notice shall state that on the Mandatory Early Repurchase Date all
     Transactions will be terminated in their

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     entirety and the amount of the Repurchase Price and Hedge Value as of the
     Mandatory Early Repurchase Date.

     (b) "Enforcement Event" will have the meaning specified in the Offering
     Circular dated November 9, 2001 for Buyer's Global Medium Term Note
     Program. A copy of the relevant excerpt is attached hereto as Exhibit A.

     (c) "Security Trustee" means The Chase Manhattan Bank, or such other person
     as may then be acting as security trustee for certain of Buyer's creditors.

8.   Miscellaneous.

     (a)    No Proceedings against Buyer. Seller hereby agrees (which agreement
     shall, pursuant to the terms of this Master Repurchase Agreement, be
     binding upon its successors and assigns) that it shall not institute
     against, or join any other person in instituting against, Buyer any
     bankruptcy, reorganization, arrangement, insolvency, or liquidation
     proceeding, or other proceeding under any Bermuda or United States federal
     or state bankruptcy or similar law, for two years and a day after the
     latest maturing commercial paper note, medium term note or other rated
     indebtedness issued by Buyer is paid. The provisions of this Paragraph 8(b)
     shall survive the termination of this Master Repurchase Agreement.

     (b)    Acknowledgement of Security. Pursuant to that certain Collateral
     Trust and Security Agreement dated as of November 9, 2001 among Buyer, The
     Chase Manhattan Bank, as trustee (the "Security Trustee") and Bear Stearns
     Securities Corp., as securities intermediary, Buyer has granted to the
     Security Trustee a first priority security interest in all of Buyer's
     right, title and interest in and to this Master Repurchase Agreement and
     each Transaction hereunder. Seller acknowledges such security interest and
     understands that the Security Trustee has the right to enforce the rights
     of Buyer hereunder, including the right of Buyer to give notices to Seller,
     to declare a Termination Date on behalf of Buyer hereunder, to determine
     Market Value and to calculate the Repurchase Price and Hedge Value as of
     the Mandatory Early Repurchase Date, that the Security Trustee is an
     express third party beneficiary of this Master Repurchase Agreement and in
     no event will the Security Trustee incur any obligations or liabilities
     hereunder.

     (c)    No Recourse. No recourse shall be had against any incorporator,
     shareholder, affiliate (except with respect to any affiliate of Seller
     which has Contiguous Affirmative Control over any Related Purchased
     Security and has delivered the right to exercise such Contiguous
     Affirmative Control to Buyer and, as to such affiliate, such exception
     shall only be applicable with respect to a breach of any agreement
     regarding the delivery of such Contiguous Affirmative Control), officer,
     director, employee or agent of Buyer or Seller with respect to any of the
     covenants, agreements, representations or warranties of the other party
     hereto contained in this Master Repurchase Agreement.

     (e)    Pricing Information. Seller agrees to make available to Buyer any
     Bloomberg or Intex passwords in the possession of Seller which Buyer may
     reasonably require to enable Buyer to determine the Market Value of any
     Purchased Security (including the cashflows due thereon).

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LIQUID FUNDING, LTD.          LNR CMBS HOLDINGS CORP.

BY:_________________________  BY:_________________________

TITLE:______________________  TITLE:______________________

DATE:_______________________  DATE:_______________________

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                                    Exhibit A

                         Excerpt from Offering Circular
    (a complete copy of the Offering Circular will be provided upon request)

The occurrence of any of the following events shall constitute an "Enforcement
Event":

(i)    the occurrence of an "Event of Default" with respect to the Notes of any
       Series (subject to any applicable cure period);

(ii)   a failure of the Issuer to make a payment with respect to Commercial
       Paper which shall not have been cured within one (1) Business Day;

(iii)  the declaration of an "Early Termination Date" as a result of the
       occurrence of an "Event of Default" under any Hedging Transaction where
       the Issuer is the defaulting party;

(iv)   the occurrence of an "Event of Default" under any Liquidity Facility
       (subject to any applicable cure period);

(v)    any Note shall be rated below "A" or "A2" (as the case may be) by any
       Rating Agency which has been engaged by the Issuer to provide a rating on
       such Note;

(vi)   the occurrence of a Capital Adequacy Failure;

(vii)  the failure of the Interest Rate Neutrality Test to be satisfied for five
       (5) consecutive Business Days; or

(viii) the failure of the Liquidity Sufficiency Test to be satisfied for five
       (5) consecutive Business Days.<PAGE>
                                                                   Exhibit 10.17

                                    ANNEX I-A

This Annex I-A forms a part of the Master Repurchase Agreement dated as of March
20, 2002 (the "Repurchase Agreement") between LIQUID FUNDING, LTD. ("Buyer") and
LNR CMBS HOLDINGS CORP. (the "Seller"). This Annex I-A shall apply to
Transactions in which Liquid Funding, Ltd. is the Buyer of certain subordinated
commercial mortgage-backed securities ("CMBS") issued by securitization trusts
(each a "Trust") with respect to pools of commercial mortgage loans, which pools
qualify under sections 860A through 860G of the Internal Revenue Code as real
estate mortgage investment conduits ("REMIC"), from Seller in accordance with
the terms described below (each, a "CMBS Transaction"). For the avoidance of
doubt, all CMBS Transactions between Seller and Buyer will be subject to the
Repurchase Agreement, Annex I, this Annex I-A (including each Terms Annex issued
hereunder), and each confirmation under the Repurchase Agreement (collectively,
the "Agreement") and each purchased CMBS shall constitute a Purchased Security
under this Agreement. If there is any inconsistency between the Repurchase
Agreement, a confirmation under the Repurchase Agreement, Annex I and this Annex
I-A, this Annex I-A (including each Terms Annex issued hereunder) shall control.
Each CMBS Transaction shall constitute a sale by Seller to Buyer of the related
CMBS. Capitalized terms used but not defined in this Annex I-A shall have the
meanings ascribed to them in the Repurchase Agreement or Annex I, as applicable.

1.   Definitions.

     "Amount of Transactions" shall mean the aggregate of all Purchase Prices
     paid for all Purchased Securities hereunder and not repaid to the Buyer.

     "Business Day" shall mean each day on which commercial banks in New York
     City and the New York Stock Exchange are open for business.

     "Buyer's Margin Ratio" shall mean, with respect to each Purchased Security,
     the Buyer's Margin Ratio determined in accordance with the applicable Terms
     Annex.

     "Margin Deficit Amount" shall mean, when referring to CMBS Transactions
     with respect to a Terms Annex under the Agreement, the amount, if any, by
     which the aggregate of the Repurchase Prices for all Purchased Securities
     covered by that Terms Annex exceeds the aggregate of the products of (a)
     the applicable Buyer's Margin Ratio and (b) the Market Value of each
     Purchased Security covered by that Terms Annex.

     "Margin Excess Amount" shall mean, when referring to CMBS Transactions with
     respect to a Terms Annex under the Agreement, the amount, if any, by which
     the aggregate of the Repurchase Prices for all Purchased Securities covered
     by that Terms Annex is less than the aggregate of the products of (a) the
     applicable Buyer's Margin Ratio and (b) the Market Value of each Purchased
     Security covered by that Terms Annex.

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     "Market Value" shall mean with respect to all Purchased Securities, the
     market value determined by Buyer daily in its sole discretion acting in
     good faith.

     "Maximum Amount" shall have the meaning set forth in the applicable Terms
     Annex.

     "Purchased Security" shall mean all Securities transferred by Seller to
     Buyer in a Transaction under the Agreement that have not been repurchased
     or liquidated pursuant to this Agreement. The term "Purchased Security"
     with respect to any Transaction also shall include CMBS delivered pursuant
     to Paragraph 4(a) of the Repurchase Agreement.

     "Terms Annex" means each Terms Annex attached hereto setting out certain
     additional terms applicable to Transactions hereunder.

2.   (a) Buyer and Seller may enter into certain CMBS Transactions, subject to
     the terms of the Agreement, including the applicable Terms Annex. Each CMBS
     Transaction shall be subject to the approval of Buyer in its sole
     discretion. Each CMBS Transaction shall constitute a Transaction under the
     Repurchase Agreement. The aggregate amount of CMBS Transactions with
     respect to a Terms Annex outstanding at any time shall not exceed the
     Maximum Amount set forth in such Terms Annex. The transfer of each
     Purchased Security by Seller to Buyer under the Agreement shall constitute
     a separate Transaction and be subject to the terms and conditions set forth
     in the Agreement. The Purchase Price, Buyer's Margin Ratio and Pricing Rate
     for each Transaction with respect to a Terms Annex shall be determined in
     accordance with such Terms Annex.

     (b) Each offer by Seller to sell Securities to Buyer in a CMBS Transaction
     (i) shall disclose any confidentiality agreement or other agreement that
     might prevent Seller from disclosing or limit Seller's ability to disclose
     information with respect to the Security subject to such offer to Buyer and
     (ii) shall include a copy of any and all such agreements. Seller shall use
     commercially reasonable efforts to add Buyer, any entity designated by
     Buyer and any transferee of an interest in such Security from any of the
     foregoing as permitted recipients of any information which Seller receives
     or has the right to receive in respect of any Purchased Security. Prior to
     the Purchase Date, Seller shall provide Buyer with any form of
     confidentiality agreement that is required to be used in connection with
     providing Buyer with such information, which confidentiality agreement(s)
     Buyer shall execute prior to receiving any such confidential information
     from Seller.

3.   All Purchased Securities with respect to CMBS Transactions under a Terms
     Annex shall be repurchased by Seller on the Termination Date set forth in
     such Terms Annex notwithstanding that a Confirmation may state a Repurchase
     Date other than such Termination Date set forth in such Terms Annex;
     provided, however if Buyer, in its sole discretion, enters into new CMBS
     Transactions with respect to such Terms Annex (including, without
     limitation, "rolling" any outstanding CMBS Transactions) after such date,
     the Agreement shall continue to control such CMBS Transactions.

4.   On the Termination Date set forth in a Terms Annex, all Repurchase Prices
     and other amounts owed by Seller with respect to all CMBS Transactions
     under such Terms Annex

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     will be due and payable and Seller shall pay all such amounts to Buyer.
     Further, subject to Buyer's rights under Section 12 of this Annex I-A,
     Buyer shall transfer to Seller, concurrently with the payment by Seller of
     all Repurchase Prices and other amounts owed by Seller with respect to all
     CMBS Transactions under such Terms Annex on or prior to the Termination
     Date, all Additional Purchased Securities (including cash) covered by such
     terminated Terms Annex without further consideration or payment therefore,
     provided that no such transfer shall occur if any Event of Default with
     respect to Seller has occurred and is continuing under the Repurchase
     Agreement, any Margin Deficit Amount exists under any Terms Annex or there
     are any obligations then due and owing from Seller to Buyer under any other
     Transaction under the Repurchase Agreement with respect to such Terms
     Annex.

5.   Intentionally Omitted.

6.   Paragraphs 4(a), 4(b) and 4(c) of the Repurchase Agreement are deleted and
     the following paragraphs are substituted therefor:

          "(a) Notwithstanding anything in the Agreement to the contrary, if on
          any day there is a Margin Deficit Amount, Buyer may by notice to
          Seller require Seller to (i) transfer to Buyer sufficient cash or
          additional securities acceptable to Buyer in its sole discretion,
          which cash or additional securities shall constitute Additional
          Purchased Securities within the meaning of Paragraph 2(b) of the
          Repurchase Agreement, and/or (at Seller's election), in the
          alternative (ii) pay such amount of the Purchase Price so that, after
          such transfer(s) and/or payment of Purchase Price, there is no Margin
          Deficit Amount, provided that any such payment of the Purchase Price
          shall be considered an early termination of a CMBS Transaction and be
          subject to the payment of an Exit Fee with respect to such amount paid
          by the Seller to the Buyer as provided in the applicable Terms Annex
          and as described in the following sentence. The amount of any such
          payment under Section 4(a)(ii) which shall be subject to an Exit Fee
          shall be determined by use of the following formula:

                    P - [5%(APP) - PP] = X

                    If X ** 0, no Exit Fee shall apply.

                    If X * 0, Seller shall pay an Exit Fee on the amount equal
                    to X.

          For purposes of calculating the amount of any such payment under
          Section 4(a)(ii) which shall be subject to an Exit Fee: (1) "P" shall
          mean the amount of such payment being made by Seller pursuant to
          Section 4(a)(ii) with respect to Transactions under such applicable
          Terms Annex; (2) "APP" shall mean the aggregate outstanding Purchase
          Prices for all Transactions under such applicable Terms Annex
          determined as of the day immediately preceding the first such payment
          under this Agreement by Seller under Section 4(a)(ii) with respect to
          Transactions under such applicable Terms Annex and as of each one year
          anniversary thereof (each one year period from such day preceding such
          payment

* denotes greater than
** denotes less than or equal to

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          date to the anniversary date thereof and each subsequent one year
          period from each anniversary date to but not including the following
          anniversary date shall be referred to in this paragraph as a "One (1)
          Year Period"); and (3) "PP" shall mean the aggregate amount of all
          previous payments made by Seller pursuant to Section 4(a)(ii) with
          respect to Transactions under such applicable Terms Annex upon which
          an Exit Fee was not paid during the applicable One (1) Year Period.

          If Seller is required to transfer Additional Purchased Securities,
          Seller shall make such transfer by the close of the Federal Reserve
          wire for money transactions on the date notice is given if such notice
          is given before 10:00 a.m. (New York time) or, if such notice is given
          after 10:00 a.m. (New York time), by the close of the Federal Reserve
          wire for money transactions on the next Business Day.

          (b) Notwithstanding anything in the Agreement to the contrary, if on
          any day there is a Margin Excess Amount, Seller may by notice to Buyer
          require Buyer, at Seller's option, to transfer cash or Purchased
          Securities to Seller, so that, after such transfer(s), there is no
          Margin Excess Amount.

          (c) If any notice is given by Buyer or Seller under subparagraph (a)
          or (b) of this Paragraph 4 at or before the Margin Notice Deadline on
          any Business Day, the party receiving such notice shall transfer cash
          or Purchased Securities as provided in such subparagraph no later than
          the close of business in the relevant market on such day. If any such
          notice is given after the Margin Notice Deadline, the party receiving
          such notice shall transfer such cash or Purchased Securities no later
          than the close of business in the relevant market on the next Business
          Day following such notice. Buyer or Seller may dispute any notice
          received under subparagraph (a) or (b) of this Paragraph 4 by
          providing a notice of dispute to the other party within two (2)
          Business Days thereof. If no notice of dispute is delivered within two
          (2) Business Day, the notice delivered under subparagraph (a) or (b)
          of this Paragraph 4 shall be binding upon the parties hereto. If a
          notice of dispute is delivered within two (2) Business Day, then the
          parties hereto agree to use good faith efforts to resolve any disputes
          within three (3) Business Days of such notice; provided however, that
          the parties shall remain obligated to make margin transfers and/or
          payments in the time periods set forth in the first and second
          sentences of this Paragraph 4(c). If the parties cannot resolve any
          such disputes within three (3) Business Days, Buyer's reasonable good
          faith determination shall be final. Any transfers that are determined
          to be appropriate as a result of the resolution of such disputes shall
          be made within one (1) Business Day of such determination. "

7.   Price Differential shall be paid periodically in the manner set out in the
     applicable Terms Annex. Subject to the last sentence of Paragraph 5 of the
     Repurchase Agreement, Buyer shall transfer to or credit the account of
     Seller, all Income with respect to Purchased

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     Securities in accordance with subparagraph (i) of Paragraph 5 of the
     Repurchase Agreement.

8.   Seller shall give Buyer notice of any change in the rating of a Purchased
     Security within two (2) Business Days after Seller becomes aware of such
     change.

9.   (a) Seller shall deliver to Buyer all of the Securities proposed to be
     purchased hereunder, and, if necessary, a complete set of all transfer
     documents in form sufficient to allow transfer and registration of such
     Purchased Security to Buyer no later than the proposed Purchase Date for
     the relevant Security. Seller shall deliver to Buyer the related Prospectus
     or Private Placement Memorandum and such other documentation as Buyer shall
     request no later than two (2) Business Days prior to the proposed Purchase
     Date for the relevant Security.

     (b) If an issuer (in the case of physical Purchased Securities) and/or
     Depository Trust Company (in the case of book entry Purchased Securities)
     fails or refuses to transfer or register the Purchased Securities into the
     name of Buyer, (i) Buyer shall have the right to cancel any CMBS
     Transaction with respect to such Purchased Securities and (ii) Seller
     agrees to pay to Buyer within five Business Days of notice (which date
     shall constitute a Repurchase Date) any Purchase Price paid by Buyer plus
     any accrued Price Differential plus any actual costs, losses, damages or
     fees incurred in connection with any hedge entered into or unwound by Buyer
     as a result of such cancellation.

10.  Seller shall provide to Buyer (a) any reports or other written information
     that Seller provides to its shareholders relating to the Purchased
     Securities within two (2) Business Days of delivery thereof by Seller and
     (b) any material written information received by Seller from the trustee or
     the master servicer for any issuer of Purchased Securities, including,
     without limitation, watch lists and borrower or periodic summary property
     financial reports but excluding (i) any periodic bond remittance reports
     that are otherwise available to Buyer directly from the applicable trustee
     and (ii) any loan files corresponding to loans that have been transferred
     from the applicable master servicer to the applicable special servicers,
     within two (2) Business Days of receipt thereof by Seller (Seller shall
     make items (b)(i) and (ii) available to Buyer upon Buyer's request). Seller
     shall notify Buyer of any material information relating to any mortgage
     loans underlying any Purchased Securities and any material correspondence
     that Seller receives with respect to any such underlying mortgage loans,
     including without limitation information that could materially affect the
     performance or Market Value of any Purchased Security. Seller shall make
     such notification within three (3) Business Days of Seller's receipt of
     such information (except in the case of information respecting the timing
     and amount of receipt of loan payments, Seller shall make such notification
     no earlier than permitted under the issuing trust's governing
     documentation). Seller's asset management and credit surveillance staff
     shall be made reasonably available to Buyer to respond to periodic
     inquiries from Buyer regarding the status of the Purchased Securities and
     the status of assets underlying the Purchased Securities.

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11.  Paragraph 11 of the Repurchase Agreement is amended to delete the word "or"
     before (vii) and to add the following after "obligations hereunder" and
     prior to "(each an "Event of Default")":

     "(viii) Seller fails to make any payment of Price Differential within one
     Business Days after such payment becomes due, (ix) Seller fails to comply
     with any other material obligation to Buyer and such failure continues for
     a period of thirty days after notice thereof is given to Seller by Buyer,
     (x) Seller fails to comply with Paragraph 10 of Annex I-A and such failure
     continues for a period of five Business Days after notice thereof is given
     to Seller by Buyer, (xi) Seller (1) defaults under one or more agreements
     or instruments relating to a Specified Transaction with an aggregate
     notional or principal amount of not less than the Threshold Amount (the
     "Threshold Amount", being equivalent herein to $5,000,000) and, after
     giving effect to any applicable notice requirement or grace period, there
     occurs a liquidation of, an acceleration of obligations under, or an early
     termination of, that Specified Transaction, (2) defaults, after giving
     effect to any applicable notice requirement or grace period, in making any
     payment or delivery due with an aggregate notional or principal amount of
     not less than the Threshold Amount on the last payment, delivery or
     exchange date of, or on early termination of, a Specified Transaction (or
     such default continues for at least three Business Days if there is no
     applicable notice requirement or grace period) or (3) disaffirms,
     disclaims, repudiates or rejects, in whole or in part, one or more
     agreements relating to a Specified Transaction with an aggregate notional
     or principal amount of not less than the Threshold Amount (or such action
     is taken by any person or entity appointed or empowered to operate it or
     act on its behalf), or (xii) the occurrence of any event which would be an
     Event of Default under Paragraph 11(xi)(1),(2), or (3) except for the fact
     that the Threshold Amount is not satisfied, which event is not cured to
     Buyer's reasonable satisfaction within thirty (30) days after the
     occurrence of any such event; provided, however, that this Paragraph
     11(xii) shall not apply to Specified Transactions with an aggregate
     notional or principal amount equal to or less than $1,000,000. "Specified
     Transaction" shall mean (a) any transaction (including an agreement with
     respect thereto) now existing or hereafter entered into between Seller and
     any financial institution which is a rate swap transaction, basis swap,
     forward rate transaction, commodity swap, commodity option, equity or
     equity index swap, equity or equity index option, bond option, interest
     rate option, foreign exchange transaction, cap transaction, floor
     transaction, collar transaction, currency swap transaction, cross-currency
     rate swap transaction, currency option or any other similar transaction
     (including any option with respect to any of these transactions), (b) all
     other financial transactions and financial agreements entered into between
     Seller and any financial institution, including, without limitation,
     futures, stock lending agreements, repurchase agreements and reverse
     repurchase agreements, loans of any kind, purchases and sales of equity and
     debt securities of any kind, including mortgages, whether or not on margin,
     and (c) any combination of these transactions."

     Upon the occurrence of any Event of Default or any event which with the
     passage of time or delivery of notice would become an Event of Default
     under the Agreement, of which the defaulting party is aware, the defaulting
     party shall give immediate notice thereof to

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     the nondefaulting party; provided, however, that the failure to give such
     notice which is not intentional or willful on the part of the defaulting
     party shall not constitute an Event of Default.

     The first sentence of Paragraph 11(d) is amended to delete the words
     "without prior notice to the defaulting party" and to add in replacement
     thereof: "upon delivery of notice to the defaulting party".

12.  Buyer's sole recourse under this Agreement shall be to the Purchased
     Securities, all Purchased Securities under all Transactions under the
     Repurchase Agreement, any and all of Seller's right, title and interest in
     this Agreement, the CMBS Transactions under this Agreement, all
     Transactions under the Repurchase Agreement, all payments and performance
     due under this Agreement and the Repurchase Agreement and all other
     property held by or for Seller (or any affiliate of Seller which has
     delivered Contiguous Affirmative Control to Buyer with respect to a Related
     Purchased Security under any Transaction under the Repurchase Agreement
     and, as to such affiliate, only with respect to a breach of any agreement
     regarding the delivery of such Contiguous Affirmative Control) at or by the
     Buyer or any agent thereof, and Buyer shall have no recourse to any other
     assets or revenues of Seller or any of its affiliates, except that the
     foregoing does not apply to damages sustained by Buyer if Seller or any
     affiliate of Seller has committed fraud, was grossly negligent, willfully
     impaired Buyer's ability to exercise any rights or remedies under this
     Agreement, acted in bad faith or willfully failed to provide Buyer with any
     material information required under Paragraph 10 of Annex I-A, in each case
     with respect to this Agreement, any Purchased Security or any Related
     Purchased Security; provided, however, that Seller shall have no liability
     for consequential, incidental, special, exemplary, punitive or similar
     damages. Notwithstanding the proviso at the end of the preceding sentence,
     Seller shall be liable for any actual costs, losses, damages and fees
     incurred in connection with any hedge entered into or unwound by Buyer
     after an Event of Default by Seller. The provisions of this section shall
     not, however, (a) constitute a waiver, release or impairment of any
     obligation evidenced or secured by this Agreement; (b) affect the validity
     or enforceability of, or any guaranty made in connection with, this
     Agreement; (c) impair the rights of Buyer to obtain the appointment of a
     receiver; (d) constitute a prohibition against Buyer seeking a judgment
     against Seller in order to commence any action or proceeding in order for
     Buyer to exercise its remedies against the Purchased Security, cash or
     property described in the first sentence of this paragraph or any payments
     or performance due under this Agreement; or (e) constitute a waiver of the
     right of Buyer to enforce the liability and obligation of Seller, by money
     judgment or otherwise, to the extent of any actual loss, damage, cost,
     expense, liability, claim or other obligation of Buyer (including
     attorneys' fees and costs reasonably incurred) not incurred in connection
     with this Agreement or related to any Transaction hereunder.

13.  Seller's obligations under the Agreement consist of a single obligation,
     notwithstanding that the CMBS Transactions are margined on a
     Transaction-by-Transaction basis. Upon an Event of Default, all Purchased
     Securities, all cash and other property held pursuant to the Repurchase
     Agreement (including but not limited to all principal and interest payments
     received by Buyer as the owner of the Purchased Securities under all

                                       -7-

<PAGE>

     Transactions under the Repurchase Agreement), and all payments and
     performance due under the Repurchase Agreement may be utilized by Buyer to
     satisfy Seller's obligations under the Agreement. Notwithstanding anything
     to the contrary herein, Seller and Buyer agree that the calculation of the
     Buyer's Margin Ratio, the Margin Deficit Amount and the Margin Excess
     Amount and the obligation of Seller to eliminate the Margin Deficit Amount
     shall be determined only with regard to Transactions under the applicable
     Terms Annex and not with regard to Transactions or Purchased Securities
     under any other Terms Annex.

14.  Notwithstanding anything to the contrary in the Agreement, Buyer shall not
     be deemed to have waived any right which it may have or be deemed to have
     under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S.
     Bankruptcy Code to file a claim for the full amount due and owing under the
     provisions of the Agreement.

15.  If the Amount of Transactions with respect to a Terms Annex exceed the
     Maximum Amount at any time, Seller shall repurchase sufficient Purchased
     Securities to reduce the Amount of Transactions to not greater than the
     Maximum Amount not later than the first Business Day after notice from the
     Buyer (which date shall constitute a Repurchase Date with respect to the
     Purchased Securities to be repurchased hereunder and for the purpose of
     Section 11(ii) of the Repurchase Agreement).

16.  At all times the pool of mortgage loans relating to the Purchased
     Securities shall be qualified as a REMIC. If at any time any pool of
     mortgage loans relating to a Purchased Security is not qualified as a
     REMIC, then the Market Value of such Purchased Security shall be deemed to
     be zero.

17.  Each party to the Agreement shall bear its own costs and expenses in
     connection with the negotiation and documentation of the Agreement;
     provided, however, that Seller shall pay the actual legal fees and expenses
     of outside counsel to Buyer in connection with Terms Annexes 2002-A and
     2002-B up to a maximum of $50,000.

18.  Each confirmation for a Transaction shall identify the applicable Terms
     Annex to which such confirmation relates. Buyer shall provide Seller with a
     written confirmation for each Transaction within five (5) Business Days of
     the Purchase Date. Seller may dispute the terms of any such confirmation by
     providing a notice of dispute to Buyer within a reasonable period of time
     not to exceed three (3) Business Days thereof. If no notice of dispute is
     delivered within three (3) Business Days, the confirmation shall be binding
     upon the parties hereto. If a notice of dispute is delivered within three
     (3) Business Days, then the parties hereto agree to use good faith efforts
     to resolve any disputes within two (2) Business Days of such notice;
     provided however, that the parties shall remain obligated under the terms
     of the confirmation. If the parties cannot resolve any such disputes within
     two (2) Business Days, Buyer's reasonable good faith determination shall be
     final.

19.  The Agreement constitutes the entire agreement between the parties hereto
     with respect to the subject matter hereof, and supersede all prior
     agreements, understandings,

                                       -8-

<PAGE>

     negotiations and discussions between the parties hereto, whether verbal or
     written, with respect to such subject matter.

LIQUID FUNDING, LTD.                 LNR CMBS HOLDINGS CORP.

BY: _______________________________  BY: _______________________________
   Name: __________________________     Name: __________________________
   Title: _________________________     Title: _________________________

                                      -9-

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