<PAGE>

                RENEWAL SUPPLEMENT NO. TEL1RN2 (the "SUPPLEMENT")
                           DATED AS OF JANUARY 1, 1996
              TO EQUIPMENT LEASE AGREEMENT (the "LEASE AGREEMENT")
                          DATED AS OF FEBRUARY 1, 1989

LESSOR                                                   LESSEE

AMERICAN INCOME PARTNERS V-C                             ROSE'S STORES, INC.
LIMITED PARTNERSHIP                                      PO DRAWER 947
c/o AMERICAN FINANCE GROUP                               HENDERSON, NC 27536
EXCHANGE PLACE
BOSTON, MA 02109


1.    LEASE TERM. PAYMENT DATES.

      This Renewal Supplement, between American Finance Group, as lessor,
lessor's interest therein having been previously sold and assigned to the
above-referenced Lessor and Lessee incorporates by reference the terms and
conditions of the Lease Agreement. Lessor hereby leases to Lessee and Lessee
hereby leases from Lessor those items of Equipment described on the attached
Schedule B, for the Renewal Lease Term and at the Renewal Term Basic Rent
payable on the Payment Dates hereinafter set forth on the attached Schedule A,
on the terms and conditions set forth in the Lease Agreement.

2.    BASIC RENT.

      Renewal Term Basic Rent is computed by multiplying the Total Equipment
Cost by the Renewal Lease Rate set forth on the attached Schedule A.

3.    LESSEE'S OPTION AT RENEWAL SUPPLEMENT EXPIRATION.

Notwithstanding the provisions of Section 29, and 30 of the Lease Agreement, at
the expiration of the Renewal Lease Term, upon (60) days prior written notice to
Lessor, Lessee has the option to purchase all, but not less than all, items of
Equipment leased pursuant to this Renewal Supplement for $2,750.00. If Lessee
fails to give Lessor (60) days written notice, the Renewal Lease Term may, at
Lessor's option, be extended and continue until (60) days from the date Lessor
receives written notice of Lessee's decision to purchase the Equipment.

4.    STIPULATED LOSS VALUE.

      Notwithstanding the provision of Section 9 and 10 of the Lease Agreement,
the Stipulated Loss Value for the Equipment during the Renewal Lease Term shall
be equal to $75,000.00.

4.    ENTIRE AGREEMENT. MODIFICATION AND WAIVERS. EXECUTION IN COUNTERPARTS.

      This Renewal Supplement and the Lease Agreement constitute the entire
agreement between Lessee and Lessor with respect to the leasing of the
Equipment. Lessee hereby represents, warrants and certifies that the
representations and warranties of Lessee set forth in the Lease Agreement are
true and correct as of the date hereof. Capitalized terms not defined herein
shall have the meanings assigned to them in the Lease Agreement. To the extent
<PAGE>

                         RENEWAL SUPPLEMENT NO. TEL1RN2
                                    PAGE TWO

any of the terms and conditions set forth in this Renewal Supplement conflict
with or are inconsistent with the Lease Agreement, this Renewal Supplement shall
govern and control. No amendment, modification or waiver of this Renewal
Supplement or the Lease Agreement will be effective unless evidenced in writing
signed by the party to be charged. This Renewal Supplement may be executed in
counterparts, all of which together shall constitute one and the same
instrument.

The undersigned, being the duly authorized representative of the Lessee, hereby
certifies that the items of Equipment described on the attached Schedule B have
been duly delivered to the Lessee in good order and duly inspected and accepted
by the Lessee as conforming in all respects with the requirements and provisions
of the Lease Agreement, as of the Renewal Term Commencement Date stated on the
attached Schedule A.

LESSOR                                          LESSEE

American Income Partners V-C                    Rose's Stores, Inc.
Limited Partnership


By: AFG Leasing IV Incorporated                 By: /s/ [ILLEGIBLE]/[ILLEGIBLE]
                                                    ----------------------------
Title: General Partner                          Title: SVP Distribution & IS
                                                       -------------------------

By: /s/ Gail Ofgant
    -------------------------------
Title: Manager
       ----------------------------


      COUNTERPART NO. 1 OF 2 SERIALLY NUMBERED MANUALLY EXECUTED COUNTERPARTS.
      TO THE EXTENT IF ANY THAT THIS DOCUMENT CONSTITUTES CHATTEL PAPER UNDER
      THE UNIFORM COMMERCIAL CODE, NO SECURITY INTEREST MAY BE CREATED THROUGH
      THE TRANSFER AND POSSESSION OF ANY COUNTERPART OTHER THAN COUNTERPART
      NO. 1
<PAGE>

                                                                          PAGE 1
                             AMERICAN FINANCE GROUP

                     Schedule A - Rental Schedule Economics

LESSEE:                     ROSE'S STORES, INC.

LESSOR:                     AMERICAN FINANCE GROUP

RENTAL SCHEDULE:                               TEL1RN2

LEASE TERM (months):                                       24

PRIMARY START DATE:                                 1/01/1996

LEASE EXPIRATION DATE:                             12/31/1997

PAYMENT FREQUENCY:                                    MONTHLY

ADVANCE/ARREARS:                                      ADVANCE

LEASE RATE:                                        .009198042

PER DIEM LEASE RATE:                               .000306601

PERIODIC RENT:                                      $2,985.00

NUMBER OF PAYMENTS:                                        24

TOTAL INTERIM RENT:                                      $.00

PAYMENT COMMENCEMENT DATE:                          1/01/1996

TOTAL EQUIPMENT COST:                             $324,525.60

DOCUMENTATION FEE:                    ___________________

/s/ [ILLEGIBLE]/[ILLEGIBLE] LESSEE INITIALS
---------------------------

/s/ GDO                     LESSOR INITIALS
---------------------------
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 1

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815209                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815628                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MID-SUSSEX S/C             MILLSBORO                       DE 19966

         1,352.19 815260                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815506                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 4993 HIGHWAY ONE           REHOBOTH BEACH                  DE 19971

         1,352.19 815258                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815594                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 602 N DUAL HWY             SEAFORD                         DE 19973

         1,352.19 815234                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815418                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MOULTRIE MALL S/C          MOULTRIE                        GA 31768

         1,352.19 815227                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815614                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38  Total for Location 3856 PIO NONO AVE         MACON                           GA 31206

         1,352.19 815100                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815152                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location 652 SHURLING DR            MACON                           GA 31201

         1,352.19 815315                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815534                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.30 Total for Location 1620 OLGETHORPE BLVD       ALBANY                          GA 31705

         1,352.19 815296                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815572                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1108 ZEBULON RD            GRIFFIN                         GA 30223

         1,352.19 815125                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815456                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location COLUMBIA SQUARE            MARTINEZ                        GA 30907
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 2

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815162                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815511                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 207 S DAWSON ST                    THOMASVILLE            GA 31792

         1,352.19 830363                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815408                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 110 BLUE RIDGE MTN CTR             BLUE RIDGE             GA 30513

         1,352.19 815093                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815219                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location TRADEWINDS S/C                     SOMERSET               KY 42501

         1,352.19 815230                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815508                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 10 HELMWOOD PLAZA SHOPPING CENTER  ELIZABETHTOWN          KY 42701

         1,352.19 815365                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815493                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1901 RUSSELLVILLE RD               BOWLING GREEN          KY 42101

         1,352.19 815305                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815634                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location LINDEN AVE                         POCOMOKE CITY          MD 21851

         1,352.19 815275                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815584                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total tor Location 200 94TH ST                        OCEAN CITY             MD 21842

         1,352.19 815340                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815637                  TELKON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location WHITE MARLIN MALL                  OCEAN CITY             MD 21842

         1,352.19 815361                  TELEON              750                POS TERMINAL            1/01/1996
         1,352.19 815402                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location KENT PLAZA SHOPPING CENTER         CHESTERTOWH            MD 21620
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 3

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815121                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815188                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815641                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         4,056.57 Total for Location SOUTHGATE S/C                     JACKSON               MS 39212

         1,352.19 815172                  TELEON              750                POS TERMINAL            1/01/1996
         1,352.19 815464                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 3720 HARDY ST                     HATTIESBURG           MS 39401

         1,352.19 815105                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815455                  TELKON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 946 N 16TH AVE                    LAUREL                MS 39440

         1,352.19 815142                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815510                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location EASTGATE S/C                      JACKSON               MS 39208

         1,352.19 815078                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815086                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location S SCALES ST & TURNER DR           REIDSVILLE            NC 27320

         1,352.19 815269                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815615                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location DUNN PLAZA S/C                    DUNN                  NC 29334

         1,352.19 815083                  TELEON              750                POS TERMINAL            1/01/1996
         1,352.19 815575                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MORGANTON PLAZA S/C               MORGANTON             NC 28655

         1,352.19 815237                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815459                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1600 WELDON RD                    ROANOKE RAPIDS        NC 27870

         1,352.19 815143                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815437                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location TRI-CITIES MALL S/C               FOREST CITY           NC 28043
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 4

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815097                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815384                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 125 WESTWOOD S/C           FAYETTEVILLE                  NC 28304

         1,352.19 830376                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815480                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location VERNON PARK MALL S/C       KINSTON                       NC 28501

         1,352.19 815076                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815419                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location CUM-PARK PLAZA S/C         BURLINGTON                    NC 27215

         1,352.19 815267                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815593                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1738 OWEN DR               FAYETTEVILLE                  NC 28304

         1,352.19 815201                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815624                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location HENDERSON MALL S/C         HENDERSON                     NC 27536

         1,352.19 815304                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815371                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location HWY 321 S                  BOONE                         NC 20607

         1,352.19 815349                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815631                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 3011 MOREHEAD PLAZA S/C    MOREHEAD CITY                 NC 28557

         1,352.19 815263                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815620                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 106 WESTERN BLVD           JACKSONVILLE                  NC 28540

         1,352.19 815271                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815309                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location ABBEY PLAZA S/C            BELMONT                       NC 29012
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 5

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815150                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815245                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location 2835 REYNOLDA RD           WINSTON-SALEM                  NC 27106

         1,352.19 815192                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815527                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location UNIVERSITY HALL S/C        CHAPEL HILL                    NC 27514

         1,352.19 818048                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815517                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 520 BERNE SQ               NEW BERN                       NC 28560

         1,352.19 815173                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815376                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 3600 N DUKE ST             DURHAM                         NC 27704

         1,352.19 815199                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815465                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 120-1 GRINDSTAFF RD        SYLVA                          NC 28779

         1,352.19 815158                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815432                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1505 HOWE ST               SOUTHPORT                      NC 28461

         1,352.19 815343                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815636                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location OLEANDER DR                WILMINGTON                     NC 28403

         1,352.19 815157                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815512                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 203 E 24Th ST              LUMBERTON                      NC 28358

         1,352.19 815146                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815386                  TELXOM              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 401 N BERKELEY BLVD        GOLDSBORO                      NC 27530
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 6

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815336                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815483                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1471 NORLINA RD            HENDERSON                     NC 27536

         1,352.19 815124                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815410                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 2001 E DIXON BLVD          SHELBY                        NC 28150

         1,352.19 815367                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815609                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 300 RANDOLPH MALL          ASHEBORO                      NC 27203

         1,352.19 815130                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815422                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 2638 CAROLINA BEACH BLVD   WILMINGTON                    NC 28403

         1,352.19 815098                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815540                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1029 N MADISON BLVD        ROXBORO                       NC 27573

         1,352.19 815134                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815325                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location 342 EASTERN BLVD           FAYETTEVILLE                  NC 28301

         1,352.19 815184                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815546                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1149 HWY 64-70 SW          HICKORY                       MC 26602

         1,352.19 815347                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815526                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MOUNTAIN VILLAGE S/C       JEFFERSON                     NC 28640

         1,352.19 815221                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815565                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 198 WAKELON DR             ZEBULON                       NC 27597
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 7

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 830378                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815492                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 6832 MARKET ST               WILMINGTON                  NC 28405

         1,352.19 815292                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815576                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MARION CITY SQ S/C           MARION                      NC 28752

         1,352.19 815337                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815556                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 601 THE COMMONS S/C          SPRUCE PINE                 NC 28777

         1,352.19 815182                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815393                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815469                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         4,056.57 Total for Location 165 WEAVER BLVD              WEAVERVILLE                 NC 28787

         1,352.19 815222                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815522                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location    3020 N MAIN ST/STE 300    HOPE HILLS                  NC 28348

         1,352.19 815191                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815496                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1490 E KING ST               BOONE                       NC 28607

         1,352.19 815126                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815440                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 3030 OLD HOLLOW RD           WALKERTOWN                  NC 27051

         1,352.19 815352                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815528                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location SOUTH LAKE S/C/              CORNELLUS                   NC 28031

         1,352.19 815241                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815287                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location 1300 N MAIN ST               FUQUAY VARINA               NC 27526
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 8

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815179                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815477                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MT OLIVE CENTRE                 MT OLIVE                  NC 28365

         1,352.19 815220                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815627                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 101 SILER CROSSING S/C          SILER CITY                NC 27344

         1,352.19 815262                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815602                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location CHOWAN CROSSING S/C             EDENTON                   NC 27932

         1,352.19 815189                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815399                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location HOMESTEAD MARKET S/C            DURHAM                    NC 27113

         1,352.19 815110                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815251                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location NEW MARKET CROSSING             MOUNT AIRY                NC 27030

         1,352.19 815232                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815621                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.39 Total for Location YANCEY COMMONS SHOPPING CENTER  BURNSVILLE                MC 28714

         1,352.19 815089                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815091                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815106                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815112                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815113                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815115                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815119                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815120                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815122                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815123                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815133                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815139                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815141                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815161                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815163                  TELXON              750                POS TERMINAL            1/01/1996
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                         PAGE 9

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815171                  TELXON              750                POS TERNINAL            1/01/1996
         1,352.19 815176                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815183                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815391                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815392                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815394                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815395                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815398                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815401                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815404                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815416                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815424                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815426                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815429                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815453                  TELEON              0274               CONTROLLER              1/01/1996
         1,352.19 815461                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815467                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815470                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815491                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815495                  TELXON              0274               CONTROLLER              1/01/1996
         1,352.19 815507                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
        48,678.84 Total for Location US HWY 1 S                 HENDERSON                     NC 27536

         1,352.19 815147                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815643                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location HARTSVILLE MALL S/C        HARTSVILLE                    SC 29550

         1,352.19 815159                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815446                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location KALMIA PLAZA S/C           AIKEN                         SC 29801

         1,352.19 815354                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815472                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1175 ORANGEBURG MALL       ORANGEBURG                    SC 29115

         1,352.19 815350                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815489                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1508 S IRBY ST             FLORENCE                      SC 29501

         1,352.19 815524                  TELXON              0274               CONTROLLER              1/01/1996
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                        PAGE 10

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
-----------------
         1,352.19 Total for Location 2701 N DAVID MCLEOD BLVD     FLORENCE                    SC 29501

         1,352.19 815256                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815582                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location N VILLAGE S/C                N MYRTLE BEACH              SC 29582

         1,352.19 815295                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815611                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1018 MERCURY BLVD            MURFREESBORO                TN 37130

         1,352.19 815137                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815598                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location GALAZ PLAZA S/C              GALAX                       VA 24333

         1,352.19 815114                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815474                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 538 N MAIN ST                EMPORIA                     VA 23847

         1,352.19 815212                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815568                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 450 N MASON ST               HARRISONBURG                VA 22801

         1,352.19 815322                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815536                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 901-1 W BROAD ST             WAYNESBORO                  VA 22990

         1,352.19 815356                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815380                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 105 CAVALIER SQ              HOPEWELL                    VA 23860

         1,352.19 815246                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815553                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1069 INDEPENDENCE BLVD       VIRGINIA BEACH              VA 23455

         1,352.19 815213                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815632                  TELXON              0274               CONTROLLER              1/01/1996
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                        PAGE 11

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                    <C>                  <C>                <C>                     <C>
         2,704.38 Total for Location 748 HILLTOP N S/C            VIRGINIA BEACH              VA 23451
-----------------
         1,352.19 815096                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815454                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location FOUR CORNER PLAZA            ONLEY                       VA 23418

         1,352.19 815103                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815486                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location S MAIN & ELY STS             FARMVILLE                   VA 23901

         1,352.19 815328                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815417                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 751 E MAIN ST                ABINGDON                    VA 24210

         1,352.19 815135                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815409                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 2940 CLINCH ST               RICKLANDS                   VA 24641

         1,352.19 815102                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815646                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.30 Total for Location 1143 JEFFERSON DAVIS HWY     FREDERICKSBURG              VA 22401

         1,352.19 815316                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815482                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 4251 E LITTLE CREEK RD       NORFOLK                     VA 23518

         1,352.19 815274                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815595                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 163 MONTICELLO AVE           WILLAMSBURG                 VA 23185

         1,352.19 815362                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815644                 TELXON               0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location MARTINSVILLE PLAZA           MARTINSVILLE                VA 24112

         1,352.19 815272                 TELXON               750                POS TERMINAL            1/01/1996
         1,352.19 815525                 TELXON               0274               CONTROLLER              1/01/1996
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                        PAGE 12

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
-----------------
         2,704.38 Total for Location TOWN & COUNTRY S/C           ALTAVISTA                   VA 24517

         1,352.19 815288                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815504                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location WASHINGTON SQ S/C            GRAFTON                     VA 23692

         1,352.19 815286                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815450                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 605 NEWMARKET DR             NEWPORT NEWS                VA 23605

         1,352.19 815206                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815557                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1390 ARMORY DR               FRANKLIN                    VA 23851

         1,352.19 815242                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815502                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 801 LAKESIDE DR              LYNCHBURG                   VA 24501

         1,352.19 815151                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815468                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 610 PELL AVE NE              ROCKY MOUNT                 VA 24151

         1,352.19 815196                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815229                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         2,704.38 Total for Location WOODFORD SQ                  CHESAPEAKE                  VA 23320

         1,352.19 815231                  TELXON              750                POS TERMINAL            1/01/1996
-----------------
         1,352.19 Total for Location 830 E ATLANTIC ST            SOUTH HILL                  VA 23970

         1,352.19 815144                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815372                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location ASHLAND JUNCTION             ASHLAND                     VA 23005

         1,352.19 815215                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815561                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 400 PANTOPS CENTER           CHARLOTTESVILLE             VA 22901
</TABLE>
<PAGE>

                           AMERICAN FINANCE GROUP                        PAGE 13

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.

            RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE NUMBER: TEL1RN2

LESSOR: AMERICAN FINANCE GROUP

<TABLE>
<CAPTION>
                                                                                                         Acceptance
Equipment Cost    Serial Number      Year Manufacturer        Model              Type                    Date
-----------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                     <C>
         1,352.19 815190                  TELXON              750                POS TERMINAL            1/01/1996
         1,352.19 815471                  TELXON              0274               CONTROLLER              1/01/1996
-----------------
         2,704.38 Total for Location 1322 STAFFORD DR             PRINCETON                   WV 24740
=================
       324,525.60 Total Equipment Cost
</TABLE>


<PAGE>

               RENEWAL SUPPLEMENT NO. TEL1RN2A (THE "SUPPLEMENT")
                            DATED AS OF JULY 9, 1996
              TO EQUIPMENT LEASE AGREEMENT (the "LEASE AGREEMENT")
                          DATED AS OF FEBRUARY 1, 1989

LESSOR                                                LESSEE

AMERICAN INCOME PARTNERS V-C                          ROSE'S STORES, INC.
LIMITED PARTNERSHIP                                   P0 DRAWER 947
c/o EQUIS FINANCIAL GROUP                             HENDERSON, NC 27536
98 NORTH WASHINGTON STREET
BOSTON, MA 02114

1.    LEASE TERM. PAYMENT DATES.

      This Renewal Supplement, between American Income Partners V-C, as Lessor,
Lessor's interest therein having been previously sold and assigned by American
Finance Group and Lessee incorporates by reference the terms and conditions of
the Lease Agreement. Lessor hereby leases to Lessee and Lessee hereby leases
from Lessor those items of Equipment described on the attached Schedule B, for
the Renewal Lease Term and at the Renewal Term Basic Rent payable on the Payment
Dates hereinafter set forth on the attached Schedule A, on the terms and
conditions set forth in the Lease Agreement.

2.    BASIC RENT

      Renewal Term Basic Rent is computed by multiplying the Total Equipment
Cost by the Renewal Lease Rate set forth on the attached Schedule A.

3.    LESSEE'S OPTION AT RENEWAL SUPPLEMENT EXPIRATION.

Notwithstanding the provisions of Section 29, and 30 of the Lease Agreement, at
the expiration of the Renewal Lease Term, upon (60) days prior written notice to
Lessor, Lessee has the option to purchase all, but not less than all, items of
Equipment leased pursuant to this Renewal Supplement for $2,750.00. If Lessee
fails to give Lessor (60) days written notice, the Renewal Lease Term may, at
Lessor's option, be extended and continue until (60) days from the date Lessor
receives written notice of Lessee's decision to purchase the Equipment.

4.    STIPULATED LOSS VALUE.

      Notwithstanding the provision of Section 9 and 10 of the Lease Agreement,
the Stipulated Loss Value for the Equipment during the Renewal Lease Term shall
be equal to $50,000.00.

4.    ENTIRE AGREEMENT. MODIFICATION AND WAIVERS. EXECUTION IN COUNTERPARTS.

      This Renewal Supplement and the Lease Agreement constitute the entire
agreement between Lessee and Lessor with respect to the leasing of the
Equipment. Lessee hereby represents, warrants and certifies that the
representations and warranties of Lessee set forth in the Lease Agreement are
true and correct as of the date hereof. Capitalized terms not defined herein
shall have the meanings assigned to them in the Lease Agreement. To the extent
<PAGE>

                         RENEWAL SUPPLEMENT NO. TEL1RN2A
                                    PAGE TWO

any of the terms and conditions set forth in this Renewal Supplement conflict
with or are inconsistent with the Lease Agreement, this Renewal Supplement shall
govern and control. No amendment, modification or waiver of this Renewal
Supplement or the Lease Agreement will be effective unless evidenced in writing
signed by the party to be charged. This Renewal Supplement may be executed in
counterparts, all of which together shall constitute one and the same
instrument.

The undersigned, being the duly authorized representative of the Lessee, hereby
certifies that the items of Equipment described on the attached Schedule B have
been duly delivered to the Lessee in good order and duly inspected and accepted
by the Lessee as conforming in all respects with the requirements and provisions
of the Lease Agreement, as of the Renewal Term Commencement Date stated on the
attached Schedule A.

LESSOR                                          LESSEE
American Income Partners V-C                    Rose's Stores, Inc.
Limited Partnership

By: AFG Leasing IV Incorporated                 By: /s/ [Illegible]
                                                    -------------------------
Title: General Partner                          Title: Sr. VP Distribution
                                                       ----------------------
                                                       & Information Systems
By: /s/ Gail Ofgant
    ------------------------
Title: VP & Auth. Signer
       ---------------------

      COUNTERPART NO. 1 OF 2 SERIALLY NUMBERED MANUALLY EXECUTED COUNTERPARTS.
      TO THE EXTENT IF ANY THAT THIS DOCUMENT CONSTITUTES CHATTEL PAPER UNDER
      THE UNIFORM COMMERCIAL CODE, NO SECURITY INTEREST MAY BE CREATED THROUGH
      THE TRANSFER AND POSSESSION OF ANY COUNTERPART OTHER THAN COUNTERPART 
      NO. 1
<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 1

                     Schedule A - Rental Schedule Economics

LESSEE:           ROSE'S STORES, INC.

LESSOR:           AMERICAN FINANCE GROUP, INC.

RENTAL SCHEDULE:                            TEL1RN2A

LEASE TERM (months):                                    17

PRIMARY START DATE:                              8/01/1996

LEASE EXPIRATION DATE:                          12/31/1997

PAYMENT FREQUENCY:                                 MONTHLY

ADVANCE/ARREARS:                                   ADVANCE

LEASE RATE:                                     .006914708

PER DIEM LEASE RATE:                            .000230490

PERIODIC RENT:                                   $1,870.00

NUMBER OF PAYMENTS:                                     17

TOTAL INTERIM RENT:                                   $.00

PAYMENT COMMENCEMENT DATE:                       8/01/1996

TOTAL EQUIPMENT COST:                          $270,438.00

DOCUMENTATION FEE:    
                                          ----------------

/s/ [ILLEGIBLE] LESSEE INITIALS
---------------
/s/ GDO         LESSOR INITIALS
---------------
<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 1

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815363                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1144 DADEVILLE RD            ALEXANDER CITY               AL 35010

         1,352.19 815207                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 108 CHERRY VALLEY S/C        LANETT                       AL 36863

         1,352.19 815253                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location BLUE HEN MALL                DOVER                        DE 19901

         1,352.19 815324                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815638                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 633 N DUPONT HWY             MILFORD                      DE 19963

         1,352.19 815092                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 236 VIRGINIA AVE             TIFTON                       GA 31794

         1,352.19 815341                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location COLLEGE PLAZA S/C            STATESBORO                   GA 30458

         1,352.19 815127                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815128                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 4058 LEXINGTON RD            ATHENS                       GA 30604

         1,352.19 815285                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 3206-A PEACH ORCHARD RD      AUGUSTA                      GA 30906

         1,352.19 815167                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 3242 WRIGHTSBORO RD          AUGUSTA                      GA 30909

         1,352.19 815359                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1285 W WASHINGTON ST         GAINESVILLE                  GA 30501

         1,352.19 815293                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location TRADEMART S/C                CORBIN                       KY 40701
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 2

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 830362                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location TRADEMORE CTR                MOREHEAD                     KY 40351
         1,352.19 815099                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location PARKWAY PLAZA MALL           MADISONVILLE                 KY 42431
         1,352.19 815223                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location UNIVERSITY S/C               RICHMOND                     KY 40475
         1,352.19 815094                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 915249                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 22 WINCHESTER PLAZA          WINCHESTER                   KY 40391
         1,352.19 815301                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 400 VILLAGE LANE             HAZARD                       KY 41701
         1,352.19 815355                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1089 18TH ST                 CORBIN                       KY 40701
         1,352.19 815117                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WILDEWOOD CTR                CALIFORNIA                   MD 20619
         1,352.19 815095                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location FESTIVAL AT WALDORF SHOPPING CENTER WALDORF               MD 20601
         1,352.19 815261                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815327                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 1461 N FAYETTEVILLE ST       ASHEBORO                     NC 27203
         1,352.19 815239                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 107 EAST BLVD                WILLIAMSTON                  NC 27892
         1,352.19 815236                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1628 S MAIN ST               HIGH POINT                   NC 27260
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 3

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815307                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 911 SUNSET AVE               CLINTON                      NC 28328

         1,352.19 815313                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location NEW RIVER SHOP DISTRICT      JACKSONVILLE                 NC 28540

         1,352.19 815077                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location S STRATFORD RD               WINSTON-SALEM                NC 27103

         1,352.19 815259                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location ROWAN MALL S/C               SALISBURY                    NC 28144

         1,352.19 815090                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 223 GREENVILLE HWY           HENDERSONVILLE               NC 28739

         1,352.19 830367                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1500 SKYWAY DR               MONROE                       NC 28110

         1,352.19 815214                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location LEXINGTON S/C                LEXINGTON                    NC 27292

         1,352.19 815138                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 801 WASHINGTON SQUARE S/C    WASHINGTON                   NC 27889

         1,352.19 815109                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 220 W KINGS HWY              EDEN                         NC 27288

         1,352.19 815364                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location GRACE PLAZA S/C              ASHEVILLE                    NC 28804

         1,352.19 815116                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815635                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 1804 CENTER PARK S/C         ABERDEEN                     NC 28315
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 4

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815306                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WHITEVILLE PLAZA S/C         WHITEVILLE                   NC 28472

         1,352.19 815178                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 211 EASTCHESTER DR           HIGH POINT                   NC 27260

         1,352.19 815155                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location W ERINGHAUS ST               ELIZABETH CITY               NC 27909

         1,352.19 815186                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 516 PLAZA DR                 MOORESVILLE                  NC 28115

         1,352.19 815282                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1603-D E MAIN ST             LINCOLNTON                   NC 28092

         1,352.19 815131                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815642                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location BEAUFORT SQUARE              BEAUFORT                     NC 28516

         1,352.19 815248                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location ASHEVILLE W S/C              ASHEVILLE                    NC 28806

         1,352.19 815108                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location BLACK MOUNTAIN S/C           BLACK MOUNTAIN               NC 28711

         1,352.19 815218                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location DOGWOOD PLAZA S/C            BREVARD                      NC 28712

         1,352.19 815284                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 113 HILLTOP VILLAGE          OXFORD                       NC 27565

         1,352.19 815165                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2449 N CENTER ST             HICKORY                      NC 28601
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 5

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815334                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location OUTER BANKS MALL/PO 1179     NAGS HEAD                    NC 27959

         1,352.19 815118                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 300 W DIXON BLVD             SHELBY                       NC 28150

         1,352.19 815193                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location FOUR SEASONS BLVD            HENDERSONVILLE               NC 28739

         1,352.19 815345                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1100 MIAMI BLVD              DURHAM                       NC 27703

         1,352.19 815170                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1015 SPRING LANE             SANFORD                      NC 27330

         1,352.19 815132                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location GUM BRANCH & HENDERSON       JACKSONVILLE                 NC 28540

         1,352.19 815344                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 100 BARBER BLVD              WAYNESVILLE                  NC 28786

         1,352.19 815153                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815630                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 1315 KILDAIRE FARM RD        CARRY                        NC 27511

         1,352.19 815326                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location PLANTATION PLAZA             CARRBORO                     NC 27510

         1,352.19 815104                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2727 S CHURCH ST             BURLINGTON                   NC 27215

         1,352.19 815166                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815640                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location ATLANTIC STATION S/C         ATLANTIC BEACH               NC 28512
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 6

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815216                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1935 SALISBURY BLVD W        SALISBURY                   NC 28144

         1,352.19 815204                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815645                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 1100 WESLEYAN BLVD N         ROCKY MOUNT                 NC 27804

         1,352.19 815211                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location STANTON SQ                   GREENVILLE                  NC 27834

         1,352.19 815303                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 3308 BRAGG BLVD              FAYETTEVILLE                 NC 28303

         1,352.19 815148                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location HWY 301 S/PO 307             SELMA                       NC 27576

         1,352.19 815174                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 980 S MAIN ST/PO 1488        KERNERSVILLE                 NC 27284

         1,352.19 815101                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 3191 PETERS CREEK PKWY       WINSTON-SALEM               NC 27107

         1,352.19 815197                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815317                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location BEACON PLAZA                 RALEIGH                      NC 27610

         1,352.19 815273                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1320 W GRANTHAM ST           GOLDSBORO                   NC 27530

         1,352.19 815225                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location THE MARKET PLACE             NEWTON                       NC 28658

         1,352.19 815360                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location NEW TOWNE CTR                CLEMENS                      NC 27012
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 7

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815291                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 714 E GREENVILLE BLVD          GREENVILLE                 NC 27858

         1,352.19 815368                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 12295 NORTH BLVD               WAKE FOREST                NC 27587

         1,352.19 815289                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location DARE CENTER                    KILL DEVIL HILLS           NC 27948

         1,352.19 815270                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815633                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location EDGECOMBE SQUARE SHOPPING CTR  TARBORO                    NC 27886

         1,352.19 815185                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815187                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815208                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815210                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815217                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815224                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815226                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815228                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815238                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815240                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815243                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815247                  TELXON              750                POS TERMINAL             6/01/1996
         1,352.19 815250                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815252                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815254                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815255                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815266                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815277                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815278                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815280                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815283                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815290                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815294                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815297                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815299                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815302                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815308                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815314                  TELXON              750                POS TERMINAL             8/01/1996
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 8

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815320                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815321                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815323                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815329                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815330                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815335                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815339                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815346                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830369                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830370                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830371                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830372                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830373                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830375                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 818049                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 818050                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 818051                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 818052                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 818053                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
        63,552.93 Total for Location US HWY 1 S                   HENDERSON                    NC 27536

         1,352.19 815081                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815084                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815087                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815111                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815140                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815164                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815181                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815202                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815279                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815281                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815300                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815312                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815318                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815319                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815342                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815357                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815358                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815366                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830361                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830364                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830365                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830366                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830368                  TELXON              750                POS TERMINAL             8/01/1996
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                       PAGE 9

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 830377                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 830380                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815629                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
        35,156.94 Total for Location US HWY 1 S                   HENDERSON                    NC 27536

         1,352.19 815088                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815107                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815149                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815195                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815310                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815353                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         8,113.14 Total for Location US HWY 1S                    HENDERSON                    NC 27536

         1,352.19 815268                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location PINEWOOD S/C                 SPARTANBURG                  SC 29301

         1,352.19 815160                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location MONTAGUE ST                  GREENWOOD                    SC 29649

         1,352.19 815205                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location MARION MALL S/C              MARION                       SC 29571

         1,352.19 815180                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1137 KNOX AVE/HWY 25         NORTH AUGUSTA                SC 29841

         1,352.19 815332                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2955 KEITH ST NW             CLEVELAND                    TN 37311

         1,352.19 815079                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2533 BROAD ST                CAMDEN                       SC 29020

         1,352.19 815369                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location BEAUFORT PLAZA               BEAUFORT                     SC 29902

         1,352.19 815169                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1121 BROAD ST                SUMTER                       SC 29150
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                      PAGE 10

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815311                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location KEOWEE VILLAGE S/C           SENECA                      SC 29678

         1,352.19 815145                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 3820 S KINGS HWY             MYRTLE BEACH                SC 29577

         1,352.19 815200                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1412-19 TROTWOOD AVE         COLUMBIA                    TN 38401

         1,352.19 830374                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 120 S WILLOW AVE             COOKEVILLE                  TN 38501

         1,352.19 815194                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location NORTHGATE S/C                MCMINNVILLE                  TN 37110

         1,352.19 815298                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location MORRISTOWN PLAZA S/C         MORRISTOWN                   TN 37813

         1,352.19 815080                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location COLONIAL SQ S/C              COLONIAL HEIGHTS             VA 23834

         1,352.19 815264                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location POPLAR HILL PLAZA S/C        CHESAPEAKE                   VA 23321

         1,352.19 815338                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 14347 WARWICK-DENBIGH SC     NEWPORT NEWS                 VA 23602

         1,352.19 815348                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location ESSEX SQ/PO 219              TAPPAHANNOCK                 VA 22560

         1,352.19 815233                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 6529 COLLEGE PARK SQ         VIRGINIA BEACH               VA 23462

         1,352.19 815203                  TELXON              750                POS TERMINAL             8/01/1996
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                      PAGE 11

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
-----------------
         1,352.19 Total for Location 1165 N FOURTH ST             WYTHEVILLE                   VA 24382

         1,352.19 815276                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WISE COUNTY PLAZA S/C        WISE                         VA 24293

         1,352.19 815085                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815168                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location HAYES STORES S/C             HAYES                        VA 23072

         1,352.19 830379                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 801 UNIVERSITY CITY BLVD     BLACKSBURG                   VA 24060

         1,352.19 815265                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 975 EMMET ST                 CHARLOTTESVILLE              VA 22901

         1,352.19 815136                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 920 S CRAIG AVE              COVINGTON                    VA 24426

         1,352.19 815235                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 1403 N MAIN ST               SUFFOLK                      VA 23434

         1,352.19 815198                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WILBORN AVE                  SOUTH BOSTON                 VA 24592

         1,352.19 815175                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2720 N MALL DR/STE 104       VIRGINIA BEACH               VA 23452

         1,352.19 815154                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815156                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,704.38 Total for Location 260 REMOUNT RD               FRONT ROYAL                  VA 22630

         1,352.19 815331                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 749 DOMINION SQ S/C          CULPEPPER                    VA 22701
</TABLE>

<PAGE>

                              EQUIS FINANCIAL GROUP                      PAGE 12

                        Schedule B Equipment Description

LESSEE: ROSE'S STORES, INC.           RENTAL SCHEDULE AND ACCEPTANCE CERTIFICATE
                                      NUMBER: TEL1RN2A

LESSORS: AMERICAN FINANCE GROUP, INC.

<TABLE>
<CAPTION>
                                                                                                          Acceptance
Equipment Cost    Serial Number       Year Manufacturer       Model              Type                     Date
-------------------------------------------------------------------------------------------------------------------------
         <S>      <C>                     <C>                 <C>                <C>                      <C> 
         1,352.19 815177                  TELXON              750                POS TERMINAL             8/01/1996
         1,352.19 815639                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         2,104.38 Total for Location 3333-5 S CRATER RD           PETERSBURG                  VA 23803

         1,352.19 815129                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location 2265 S MAIN ST               HARRISONBURG                VA 22801

         1,352.19 815244                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WOODS CORNER S/C             VIRGINIA BEACH              VA 23464

         1,352.19 815351                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location WILLIAMS COURT S/C           PORTSMOUTH                  VA 23702

         1,352.19 815333                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location NO 1 WESTGATE S/C            BEDFORD                     VA 24526

         1,352.19 815082                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location AMHERST HWY & AMELON RD      MADISON HEIGHTS             VA 24572

         1,352.19 815257                  TELXON              750                POS TERMINAL             8/01/1996
-----------------
         1,352.19 Total for Location AIRPORT SQ S/C               BLUEFIELD                   WV 24701

-----------------
-----------------
       270,438.00 Total Equipment Cost
</TABLE>