Document:

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                                  MORTGAGE NOTE
                                  -------------
                                 (VARIABLE RATE)

$7,637,500.00                                                     April 16, 2002

         FOR VALUE RECEIVED, the undersigned, SOUTHSIDE MALL, LLC, a Delaware
limited liability company with offices at c/o Glimcher Properties Limited
Partnership, 20 South Third Street, Columbus, Ohio 43215 (hereinafter referred
to as "Maker"), promises to pay to the order of BANK ONE, NA, a national banking
association (hereinafter referred to as "Payee," which term shall include any
holder hereof), at its principal place of business at 100 East Broad Street,
Columbus, Ohio 43271-0208, or at such other place as Payee may designate, the
principal sum of Seven Million Six Hundred Thirty-Seven Thousand Five Hundred
Dollars ($7,637,500.00) or so much thereof as may be advanced by Payee to Maker
from time to time, together with all charges herein provided and interest on the
unrepaid advances of said principal sum from date of disbursement by Payee,
payable in cash at the rates and in the manner hereinafter set forth.

                                   ARTICLE I

                                   DEFINITIONS

         1.1 The following terms wherever used in this Note shall have the
following meanings:

         "Anchor Tenants" shall mean J.C. Penney, OfficeMax and K-Mart.

         "Calculation Date" shall mean the first day of each calendar quarter
commencing July 1, 2002, and each October 1, January 1, April 1 and July 1
thereafter.

         "Default Rate of Interest" shall mean the rate equal to three percent
(3.0%) per annum plus the applicable rate of interest otherwise being charged
hereunder.

         "DSCR" shall mean the debt service coverage ratio as determined by
Payee as of each Calculation Date, calculating the ratio of (x) the sum of the
Net Operating Income from the Property for the immediately preceding twelve (12)
months to (y) the sum of the principal and interest payments that would be due
and payable for the immediately preceding twelve (12) months based upon an
assumed amortization of the outstanding principal amount hereunder over a
twenty-five (25) year period at an assumed interest rate of the then-current
10-year U.S. Treasuries plus two and one-half percent (2.50%) per annum, but in
no event at an assumed interest rate less than seven and one-half percent (7.5%)
per annum.

         "Effective Rate" shall mean the Prime Rate, LIBOR Rate, or Default Rate
of Interest, whichever shall be applicable.

         "Gross Revenues" shall mean for each month all rents, revenues and
other payments received by or for the benefit of Maker in cash or current funds
or other consideration from any

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source whatsoever in connection with its ownership, operation and management of
the Property, including all payments received by Maker from all tenants or other
occupants of the Property, BUT EXCLUDING all payments of rent and expense
reimbursements from any Anchor Tenant not in continuous operation at the
Property, although an Anchor Tenant shall not be deemed to have ceased
continuous operation merely because of closure for remodeling (30 days or less)
or reconstruction after casualty (120 days or less). Gross Revenues shall be
determined on an accrual basis and in accordance with general accepted
accounting principles.

         "Guarantor" shall mean Glimcher Properties Limited Partnership, a
Delaware limited partnership, which has guaranteed repayment of the loan
evidenced by this Note and performance by Maker of all obligations under the
Loan Documents pursuant to the terms and conditions of the Guaranty.

         "Guaranty" shall mean that certain Unconditional Guaranty of Payment
and Performance of even date herewith, executed by Guarantor.

         "Interest Period" means each consecutive one month period (the first of
which shall commence on the date of this Note) effective as of the first day of
each Interest Period and ending on the last day of each Interest Period, but in
no event exceeding the maturity date of this Note, and provided that if any
Interest Period is scheduled to end on a date for which there is no numerical
equivalent to the date on which the Interest Period commenced, then it shall end
instead on the last day of such calendar month.

         "LIBOR Index" shall mean the offered rate for the period equal to or
next greater than the Interest Period for U.S. Dollar deposits of not less than
$1,000,000.00 as of 11:00 A.M. City of London, England time two London Business
Days prior to the first day of the Interest Period as shown on the display
designated as "British Bankers Association Interest Settlement Rates" on Reuters
Screen FRBD, or such other screen as may replace such screen on Reuters for the
purpose of displaying such rate. In the event that such rate is not available on
Reuters, then such offered rate shall be otherwise independently determined by
Payee from an alternate, substantially similar independent source available to
Payee or shall be calculated by Payee by a substantially similar methodology as
that theretofore used to determine such offered rate.

         "LIBOR Rate" shall mean, initially, the LIBOR Index plus one and 95/100
percent (1.95%) per annum (also referred to as the "Initial LIBOR Rate"),
subject to adjustment pursuant to the provisions of Section 2.4.

         "Loan Agreement" shall mean that certain Loan Agreement of even date
herewith, pursuant to which the principal amount of this Note is to be
disbursed, by which Payee agrees to loan funds to Maker pursuant to the terms
and conditions stated therein.

         "Loan Documents" shall collectively mean this Note, the Mortgage, Loan
Agreement, Guaranty and any other instrument, affidavit, certificate, or
document heretofore, now or hereafter given by Maker or Guarantor in connection
with the closing of the loan evidenced by this Note.

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         "London Business Day" means any day other than a Saturday, Sunday or a
day on which banking institutions are generally authorized or obligated by law
or executive order to close in the City of London, England.

         "Maturity Date" shall mean the earlier of May 1, 2004, or the date of
acceleration of the Indebtedness by Payee.

         "Mortgage" shall mean a certain Mortgage, Assignment of Rents and
Security Agreement of even date herewith on the Property given by Maker in favor
of Payee to secure payment of this Note.

         "Net Operating Income" shall mean, for each month calculated by Payee
based upon Payee's review of Maker's monthly financial statements provided to
Payee, together with such other information as Payee may reasonably request, the
difference between the Gross Revenues for said month and all the Operating
Expenses for said month.

         "Operating Expenses" shall mean the reasonably necessary and customary
costs and expenses incurred and actually paid by Maker in connection with its
ownership, operation and management of the Property, determined on an accrual
basis and in accordance with generally accepted accounting principles;
specifically excluding from Operating Expenses, however (a) all capital
expenditures incurred by Maker, (b) principal, interest and all other payments
made under the Loan Documents and costs and expenses incurred by Maker in
connection with the execution of the Loan Documents, and (c) depreciation and
all other non-cash expenses of the Property.

         "Prime Rate" shall mean the interest rate established and announced
from time to time by Bank One, NA, as its prime rate, based upon its
consideration of economic, money market, business and competitive factors, and
it is not necessarily the most favorable rate of Bank One, NA. Each change in
said Prime Rate shall, without notice, automatically and immediately change the
rate of interest due hereon.

         "Property" shall mean that certain tract of land consisting of 32.22
acres, more or less, and all improvements, now and hereafter situated thereon in
the Town of Oneonto, County of Otsego and State of New York, all of which shall
be subject to the Mortgage.

                                   ARTICLE II

                       PAYMENTS OF PRINCIPAL AND INTEREST

         2.1 Subject to the provisions of Sections 2.2 and 2.4 below, interest
on the unrepaid advances of the principal sum from date of disbursement by Payee
at the LIBOR Rate shall be due and payable monthly on the first day of each
month commencing May 1, 2002, and continuing on the first day of each month
thereafter throughout the term of this Note.

         2.2 Notwithstanding the foregoing, if any advances of the principal sum
are made by Payee to Maker that are not made at the beginning of the Interest
Period for the LIBOR Rate,

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such advances shall bear interest at the Prime Rate until the end of the
Interest Period in which such advances were made, and then such advances shall
be added to the outstanding principal sum bearing interest at the LIBOR Rate for
the next Interest Period.

         2.3 Interest on this Note is computed by applying the ratio of the
annual interest rate over a year of three hundred sixty (360) days, multiplied
by the outstanding principal balance, multiplied by the actual number of days
the principal balance is outstanding.

         2.4 Effective as of any Calculation Date, in the event that Payee
determines: (a) that the DSCR is equal to or less than 1.65, but greater than
1.50, then the LIBOR Rate charged hereunder shall adjust to be equal to the
LIBOR Index plus two and 10/100 percent (2.10%) per annum; (b) that the DSCR is
equal to or less than 1.50, then the LIBOR Rate charged hereunder shall adjust
to be equal to the LIBOR Index plus two and 25/100 percent (2.25%) per annum;
and (c) that the DSCR is greater than 1.65, then the LIBOR Rate charged
hereunder shall adjust to be equal to the Initial LIBOR Rate.

         2.5 All principal and all accrued and unpaid interest shall be due and
payable in full on the Maturity Date, unless a principal payment is otherwise
required prior to the Maturity Date pursuant to the provisions of Section 5.3 of
the Loan Agreement, in which case such principal payment shall be accordingly
made; provided further, however, that Maker may elect, subject to Payee's
approval which may be withheld in Payee's sole and absolute discretion, to
extend the Maturity Date of this Note to May 1, 2005, by giving Payee written
notice of such request after January 1, 2004, but prior to March 1, 2004, and by
paying to Payee, prior to the then current Maturity Date, a non-refundable loan
extension fee in the amount of one-fourth of one percent (0.25%) of the then
outstanding principal balance of this Note; provided further that, at the time
of such election, there shall not have occurred any uncured Event of Default, as
hereinafter defined, or any event which after notice or the passage of time, or
both, could give rise to an Event of Default, or any materially adverse change
in the financial condition of Maker or Guarantor.

         2.6 In the event that Maker and Payee shall have agreed to extend the
Maturity Date of this Note to May 1, 2005, pursuant to the terms and conditions
of Section 2.5 hereinabove, Maker may elect, subject to Payee's approval which
may be withheld in Payee's sole and absolute discretion, to extend further the
Maturity Date of this Note to May 1, 2006, by giving Payee written notice of
such request after January 1, 2005, but prior to March 1, 2005, and by paying to
Payee, prior to the then current Maturity Date, an additional nonrefundable loan
extension fee in the amount of one-fourth of one percent (0.25%) of the then
outstanding principal balance of this Note; provided further that, at the time
of such election, there shall not have occurred any uncured Event of Default, as
hereinafter defined, or any event which after notice or the passage of time, or
both, could give rise to an Event of Default, or any materially adverse change
in the financial condition of Maker or Guarantor.

         2.7 Unless otherwise agreed to, in writing, or otherwise required by
applicable law, payments will be applied first to accrued, unpaid interest, then
to principal, and any remaining amount to any unpaid collection costs, late
charges and other charges, provided, however, upon an Event of Default, Payee
reserves the right to apply payments among principal, interest, late

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charges, collection costs and other charges at its discretion. All prepayments
shall be applied to the indebtedness owing hereunder in such order and manner as
Payee may from time to time determine in its sole discretion.

         2.8 All payments of principal and interest due under this Note shall be
made by Maker without any rights of offset or other reduction of the amount of
such payments.

                                  ARTICLE III

                                  LATE CHARGES

         3.1 If any of said payments of principal or interest or any combination
thereof be not paid in full within ten (10) days after such payment is due, then
in addition to the amount of said payment there shall be due, and Maker promises
to pay, a late charge in respect of each said payment in the amount of five
percent (5.0%) of the regularly scheduled payment or $25.00, whichever is
greater, up to the maximum amount of One Thousand Five Hundred Dollars
($1,500.00) per late charge, which Maker agrees is a fair and reasonable charge
for costs incurred by Payee in processing such late payment and shall not be
deemed a penalty. The late charge may be assessed without notice, shall be
immediately due and payable and shall be in addition to all other rights and
remedies available to Payee.

                                   ARTICLE IV

                                   PREPAYMENT

         4.1 The privilege is hereby reserved by Maker to prepay, upon five (5)
business days' prior written notice to Payee, the outstanding principal balance
of this Note in whole or in part at any time and from time to time without
premium or penalty, provided that a payment of all accrued and unpaid interest
to the date of such prepayment is included with such prepayment. Notwithstanding
the foregoing, if Maker makes any such prepayment other than on the last day of
an Interest Period, Maker (a) with such prepayment, shall pay all accrued and
unpaid interest to the date of such prepayment, (b) with such prepayment, shall
pay an administrative fee of $100.00, and (c) on demand, shall reimburse Payee
and hold Payee harmless from all losses and expenses incurred by Payee as a
result of such prepayment, including, without limitation, any losses and
expenses arising from the liquidation or reemployment of deposits acquired to
fund or maintain the principal amount prepaid. Such reimbursement shall be
calculated as though Payee funded the principal amount prepaid through the
purchase of U.S. Dollar deposits in the London, England interbank market having
a maturity corresponding to such Interest Period and bearing an interest rate
equal to the LIBOR Rate for such Interest Period, whether in fact that is the
case or not. Payee's determination of the amount of such reimbursement shall be
conclusive in the absence of manifest error. In the event that the prepayment is
made as a result of Acceleration as defined in Section 5.2 below, then a
prepayment premium shall be payable equal to five percent (5%) of the amount
then due.

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                                   ARTICLE V

                                     DEFAULT

         5.1 The term "Event of Default" shall mean the occurrence of any one or
more of the following:

         (a) A failure by Maker to make any payment of principal or interest or
any combination thereof on this Note within fifteen (15) days after payment is
due;

         (b) The material incorrectness as of the date hereof of any
representation or warranty made by Maker or any Guarantor to Payee in any of the
Loan Documents, any financial statement or any other document delivered to Payee
in connection with the loan evidenced by this Note;

         (c) The abandonment of the Property, or any portion thereof, without
the written consent of Payee;

         (d) Intentionally Omitted;

         (e) The sale (by land contract or otherwise), assignment, mortgaging,
leasing, encumbering, refinancing or conveyance of the Property, or any portion
thereof or legal or equitable interest therein, except as otherwise expressly
permitted in the Loan Documents;

         (f) That a mechanic's or materialmen's lien is filed upon the Property,
which lien is not discharged or bonded off or fully reserved for, within thirty
(30) days after such filing;

         (g) Thirty (30) days after Payee's notice to Maker of Maker's failure
to keep in full force and effect or obtain and thereafter keep in full force and
effect all certificates, licenses, franchise or management agreements, permits
and other agreements necessary in Payee's reasonable discretion, for the lawful
occupancy, use and operation of the Property for its intended purposes,
including, but not limited to, a retail center.

         (h) A failure by Maker to keep in effect the policies of insurance
required by the Mortgage;

         (i) The change in the identity of any of the members of Maker;

         (j) The occurrence of any event of default, acceleration, or
commencement of foreclosure under any other deed of trust, lien or encumbrance
on the Property, prior or subordinate to the Mortgage;

         (k) The entry of any judgment or lien in an amount in excess of One
Hundred Thousand Dollars ($100,000.00) against Maker by or in favor of any third
person which judgment or lien is not satisfied, discharged, reserved for, or
bonded off within thirty (30) days from the date of entry of said judgment or
lien;

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         (l) The appointment of a receiver, trustee, custodian, conservator, or
liquidator, or other similar official for Maker, or any Guarantor, any of the
Property, or any other property of Maker or any Guarantor;

         (m) Maker or any Guarantor shall admit in writing inability to pay
debts, or shall make a general assignment for the benefit of creditors;

         (n) Maker or any Guarantor shall commence any case, proceeding or other
action seeking reorganization, arrangement, adjustment, liquidation, dissolution
or composition of Maker or any Guarantor or any debts under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors;

         (o) Any case, proceeding or other action commenced against Maker or any
Guarantor seeking to have an order for relief entered against Maker or any
Guarantor, as debtor, or seeking a reorganization, arrangement, adjustment,
liquidation, dissolution or composition of Maker or any Guarantor or any debts,
under any law relating to bankruptcy, insolvency, reorganization or debtor
relief laws, or seeking an appointment of a receiver, trustee, custodian or
other similar official for Maker or any Guarantor or for all or any of the
Property, or any other property of Maker or any Guarantor, and such case,
proceeding or other action (i) results in the entry of an order for relief
against Maker or any Guarantor or (ii) remains undismissed for a period of sixty
(60) days;

         (p) Maker or any Guarantor shall have concealed, removed, or permitted
to be concealed or removed, any part of its property, with intent to hinder,
delay or defraud its creditors or any of them, or made or suffered a transfer of
any of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or shall have suffered or permitted, while insolvent,
any creditor to obtain a lien upon any of its property through legal proceedings
which is not vacated within sixty (60) days from the date thereof;

         (q) An occurrence of any event or condition which results in a default
in the payment of any other indebtedness or the performance of any other
obligation of Maker or any Guarantor to Payee;

         (r) The liquidation, termination or dissolution of Maker or any
Guarantor; or

         (s) A failure by Maker or any Guarantor to comply with any of the other
terms or conditions specified herein or in any other of the Loan Documents or
Maker's or any Guarantor's failure to perform any of Maker's or any Guarantor's
covenants under the Loan Documents and such failure remains uncured for thirty
(30) days after Payee provides written notice of such failure in accordance with
the terms of the Mortgage.

         5.2 Upon the occurrence of any Event of Default, the entire unpaid
balance of principal and interest evidenced by this Note, together with all sums
of money advanced by Payee in accordance with the terms of any one or more of
the Loan Documents, and all sums due and owing for any late charge or charges
hereunder (the foregoing being hereinafter collectively referred to as the
"Indebtedness") shall thereupon bear interest at the Default Rate of Interest,
and

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at the option of Payee, all the Indebtedness together with interest thereon at
the Default Rate of Interest shall immediately become due and payable
("Acceleration") without demand made therefor and without notice to any person,
notice of the exercise of said option being hereby expressly waived, and Payee
shall have all remedies of a secured party under law and equity to enforce the
payment of all of the Indebtedness, time being of the essence of this Note. The
Default Rate of Interest shall be charged to Maker upon the occurrence of any
Event of Default notwithstanding any invoices or billing statements sent by
Payee to Maker indicating an interest rate to the contrary. In addition, any
waiver of Payee's right to charge the Default Rate of Interest or to accelerate
the Indebtedness must be made in writing and cannot be waived by oral
representation or the submission to Maker of monthly billing statements.

         5.3 Notwithstanding the foregoing, upon the occurrence of any Event of
Default and during the continuation thereof, and after maturity, including
maturity upon acceleration and failure to pay upon final maturity, Payee, at its
option, may also, if permitted under applicable law, do one or both of the
following: (a) increase the applicable interest rate under this Note to the
Default Rate of Interest, and (b) add any unpaid accrued interest to principal
and such sum will bear interest therefrom until paid at the rate provided in
this Note (including the Default Rate of Interest). The interest rate under this
Note will not exceed the maximum rate permitted by applicable law.

                                   ARTICLE VI

                                  MISCELLANEOUS

         6.1 The failure of Payee to exercise any option herein provided upon
the occurrence of any Event of Default shall not constitute a waiver of the
right to exercise such option in the event of any continuing or subsequent Event
of Default. Maker hereby agrees that the maturity of all or any part of the loan
may be postponed or extended and that any covenants and conditions contained in
this Note or in any of the other Loan Documents may be waived or modified
without prejudice to the liability of Maker on said Note or Loan Documents.

         6.2 When this Note becomes due, by Acceleration or otherwise, Payee
may, at its option, demand, sue for, collect, or make any compromise or
settlement it deems desirable with reference to property held as security
herefor. Payee shall not be bound to take any steps necessary to preserve any
rights in the property held as security herefor against prior parties, which
Maker hereby assumes to do. Maker expressly authorizes Payee to deal in any
manner with any collateral and the security of every kind and character given to
secure the payment of Maker's obligations under this Note, and without limiting
the generality of the foregoing, Maker expressly authorizes Payee to waive any
rights which Payee may have relative to requiring additional collateral or to
surrendering or to releasing collateral held by Payee, or to substituting any
collateral held by Payee for other collateral of like kind, or of any kind, nor
shall the obligations of Maker under this Note, nor the rights of Payee under
the Loan Documents be diminished or in any manner affected by the failure of
Payee to exercise its rights with reference to such collateral or in any manner
failing to proceed against the collateral or security pledged or conveyed as
security for the obligations of Maker under this Note. The provisions hereof
shall apply and be controlling as to all property which may at any time be
security herefor.

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         6.3 Maker hereby authorizes Payee, in its sole discretion, upon the
occurrence of an Event of Default, to apply all or any portion of the balance of
any account maintained by Maker with Payee to the payment or reduction, in whole
or in part, of any and all principal and interest then due, whether by
acceleration or otherwise, to Payee under this Note. Upon the occurrence of any
Event of Default, Payee shall have the right to setoff against all obligations
of Maker to Payee hereunder, whether matured or unmatured, all amounts owing to
Maker by Payee, whether or not then due and payable, and all other funds or
property of Maker on deposit with or otherwise held in the custody of Payee or
any of its affiliates, all without notice to or demand on Maker, such notice and
demand being hereby waived.

         6.4 Presentment for payment, notice of dishonor, protest, notice of
protest and diligence in bringing suit against any party hereto are hereby
waived by Maker.

         6.5 Maker hereby waives all relief from any and all appraisement or
exemption laws now in force or hereafter enacted.

         6.6 The obligations evidenced or created by this Note, as well as all
waivers of rights by Maker contained herein shall effectively bind and be the
obligations and waivers of any and all others who may at any time become liable
for the payment of all or any part of this Note, including, without limitation,
all indorsers and guarantors.

         6.7 Nothing herein contained, nor in any of the other Loan Documents or
other documents relating hereto, shall be construed or so operate as to require
Maker, or any person liable for the payment of the loan made pursuant to this
Note, to pay interest in an amount or at a rate greater than the highest rate
permissible under applicable law. Should any interest or other charges paid by
Maker, or any parties liable for the payment of the loan made pursuant to this
Note, result in the computation or earning of interest in excess of the highest
rate permissible under applicable law, then any and all such excess shall be and
the same is hereby waived by Payee, and all such excess shall be automatically
credited against and in reduction of the principal balance, and any portion of
said excess which exceeds the principal balance shall be paid by Payee to Maker
and any parties liable for the payment of the loan made pursuant to this Note,
it being the intent of the parties hereto that under no circumstances shall
Maker or any parties liable for the payment of the loan hereunder, be required
to pay interest in excess of the highest rate permissible under applicable law.
All interest paid or agreed to be paid to Payee shall, to the extent permitted
under applicable law, be amortized, prorated, allocated and spread throughout
the full period until payment in full of this Note, including the period of any
renewal or extensions thereof, so that interest thereon for such full period
shall not exceed the maximum amount permitted by applicable law.

         Notwithstanding anything to the contrary herein contained, in the event
that the Effective Rate should ever exceed the highest rate permissible under
applicable law, thereby causing the interest accruing on the indebtedness
evidenced by this Note to be limited to such highest rate permissible under
applicable law, then any subsequent reduction in the Effective Rate shall not
reduce the rate of interest charged hereunder below the highest rate permissible
under applicable law until the total amount of interest accrued on the
indebtedness evidenced by this Note equals the amount of interest which would
have accrued on such indebtedness if the Effective Rate had

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been in effect at all times in the period during which the rate charged thereon
was limited to the highest rate permissible under applicable law.

         6.8 Maker acknowledges and agrees that all property pledged or assigned
by Maker to Payee as security for this Note has been pledged or assigned as
security for the entirety of all indebtedness evidenced by this Note.

         6.9 If any provision (or any part of any provision) contained in this
Note shall for any reason be held or deemed to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision (or remaining part of the affected
provision) of this Note, and this Note shall be construed as if such invalid,
illegal or unenforceable provision (or part thereof) had never been contained
herein and the remaining provisions of this Note shall remain in full force and
effect.

         6.10 Maker hereby authorizes any attorney-at-law to appear in any court
of record in the State of Ohio or in any other state or territory of the United
States at any time after this Note becomes due, whether by acceleration or
otherwise, to waive the issuing and service of process, and to confess judgment
against Maker in favor of Payee for the amount due together with interest,
expenses, the costs of suit and reasonable counsel fees, and thereupon to
release and waive all errors, rights of appeal and stays of execution. Such
authority shall not be exhausted by one exercise, but judgment may be confessed
from time to time as any sums and/or costs, expenses or reasonable counsel fees
shall be due, by filing an original or a photostatic copy of this Note. Maker
waives any right to move any court for an order having any attorney or firm
representing Payee removed or disqualified as counsel for Payee as a result of
such attorney or firm confessing judgment against Maker in accordance with this
Section 6.10. Maker hereby expressly waives any conflicts of interest that may
now or hereafter exist as a result of any attorney representing Payee confessing
judgment against Maker and expressly consents to any attorney representing Payee
or to any other attorney to confess judgment against Maker in accordance with
this Section 6.10. Maker hereby further consents and agrees that Payee may pay
any attorney confessing judgment against Maker in accordance with this Section
6.10, a reasonable fee for confessing judgment and that any fees so paid may be
included in the amount of such judgment.

         6.11 Maker hereby agrees to pay to Payee all costs of preparing,
collecting and securing, and of attempting to collect and to secure this Note,
and all costs of foreclosing the Mortgage, including, without limitation,
reasonable attorneys' fees, appraisers' fees, court costs, notice charges and
title insurance charges, whether such attempt be made by suit, in bankruptcy, or
otherwise; and said costs and any other sums due Payee by virtue of this Note or
the Mortgage may be included in any judgment or decree rendered.

         6.12 Maker agrees that Payee may provide any information Payee may have
about Maker or about any matter relating to this Note to BANK ONE CORPORATION,
or any of its subsidiaries or affiliates or their successors, or to any one or
more purchasers or potential purchasers of this Note. Maker agrees that Payee
may at any time sell, assign or transfer one or more interests or participations
in all or any part of its rights or obligations in this Note to one or more
purchasers whether or not related to Payee.

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         6.13 JURY WAIVER. THE UNDERSIGNED AND PAYEE (BY ITS ACCEPTANCE HEREOF)
HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE UNDERSIGNED AND PAYEE ARISING
OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT, ANY OTHER LOAN DOCUMENT, ANY
OTHER RELATED DOCUMENT, OR ANY RELATIONSHIP BETWEEN PAYEE AND THE UNDERSIGNED.
THIS PROVISION IS A MATERIAL INDUCEMENT TO PAYEE TO PROVIDE THE FINANCING
DESCRIBED HEREIN OR IN THE OTHER LOAN DOCUMENTS.

         This Note is delivered in the State of Ohio and is to be governed by
and construed in accordance with the laws of the State of Ohio. In addition to
any other appropriate jurisdiction determined by Payee, Maker hereby consents
to, and by execution of this Note, submits to the personal jurisdiction of the
Court of Common Pleas of Franklin County, Ohio and the United States District
Court sitting in Columbus, Ohio for the purposes of any judicial proceedings
which are instituted for the enforcement of this Note. Maker agrees that venue
is proper in said jurisdiction.

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WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.
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                                  SOUTHSIDE MALL, LLC,
                                  a Delaware limited liability company

                                  By:   Glimcher Properties Limited Partnership,
                                        its Managing Member

                                        By:   Glimcher Properties Corporation,
                                              its General Partner

                                              By: /s/ George A. Schmidt
                                                  ------------------------------
                                                    George A. Schmidt, Executive
                                                    Vice President

                                       11
<PAGE>

STATE OF OHIO,
COUNTY OF FRANKLIN, SS:

         The foregoing instrument was acknowledged before me this 16th day of
April, 2002, by George A. Schmidt, the Executive Vice President of Glimcher
Properties Corporation, the General Partner of Glimcher Properties Limited
Partnership, the Managing Member of Southside Mall, LLC, a Delaware limited
liability company, on behalf of the corporation, limited partnership and limited
liability company.

                                  /s/ Beth N. Church
                                  -------------------------------------------
                                  Notary Public

                                  Commission Expires:  1/30/07
                                                     ------------------------

                                       12<PAGE>

              MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT
              ----------------------------------------------------
                     (SECURING VARIABLE RATE MORTGAGE NOTE)

                                  COVER SHEET

Date:                   April 16, 2002

Mortgagor:              SOUTHSIDE MALL, LLC, a Delaware limited liability
                        company

Mortgagor's Notice      c/o Glimcher Properties Limited Partnership
Address:                20 South Third Street
                        Columbus, OH 43215
                        Attn:  General Counsel

Mortgagee:              BANK ONE, NA, a national banking association, together
                        with other holders from time to time of the Note (as
                        defined herein).

Mortgagee's Notice      100 East Broad Street
Address:                Columbus, Ohio 43271-0208
                        Attn: David A. DeVictor, Vice President

Note Amount:            $7,637,500.00 THE MAXIMUM PRINCIPAL INDEBTEDNESS WHICH
                        IS SECURED BY OR WHICH BY ANY CONTINGENCY MAY BE SECURED
                        BY THIS MORTGAGE IS $7,637,500.00

Maturity Date:          May 1, 2004, unless extended by its terms to May 1,
                        2006.

State:                  New York

Record Owner of Land:   SOUTHSIDE MALL, LLC

THIS MORTGAGE DOES NOT COVER REAL PROPERTY IMPROVED OR TO BE IMPROVED WITH A
STRUCTURE CONTAINING SIX RESIDENTIAL UNITS OR LESS, EACH DWELLING UNIT HAVING
ITS OWN SEPARATE COOKING FACILITIES.

EXHIBIT A:              Attached hereto and incorporated herein by reference.

This document prepared by:

Charles H. McCreary III, Bricker & Eckler LLP, 100 South Third Street, Columbus,
Ohio 43215

<PAGE>

              MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT
              ----------------------------------------------------
                     (SECURING VARIABLE RATE MORTGAGE NOTE)

         KNOW ALL MEN BY THESE PRESENTS: That SOUTHSIDE MALL, LLC, a Delaware
limited liability company ("Mortgagor"), in consideration of the payments to
Mortgagor which BANK ONE, NA, a national banking association, having an office
and place of business at 100 East Broad Street, Columbus, Ohio 43271-0208
("Mortgagee"), has made contemporaneously herewith or may hereafter make, does
hereby irrevocably and absolutely grant, transfer, assign, mortgage, bargain,
sell and convey to Mortgagee, with all POWERS OF SALE AND STATUTORY RIGHTS in
the State of New York, that real property situated in the State of New York,
County of Otsego and in the Town of Oneonta and being more fully described on
Exhibit "A" attached hereto and made a part hereof ("Land").

         TOGETHER WITH the following, whether now owned or hereafter acquired by
Mortgagor: (a) all improvements now or hereafter attached to or placed, erected,
constructed or developed on the Land ("Improvements"); (b) all fixtures now or
hereafter attached to or used in or about the Improvements and all renewals of
or replacements or substitutions thereof; (c) all water and water rights,
timber, crops, and mineral interests pertaining to the Land; (d) all right,
title and interest of Mortgagor in and to all streets, roads, public places,
easements and rights-of-way, existing or proposed, public or private, adjacent
to or used in connection with, belonging or pertaining to the Land; (e) all
rights, hereditaments and appurtenances pertaining to the foregoing; (f) other
interests of every kind and character that Mortgagor now has or at any time
hereafter acquires in and to the Land, Improvements, and other property
described in items (b) through (e) hereinabove, including rights of ingress and
egress and all reversionary rights or interests of Mortgagor with respect to
such property; (g) all equipment, fixtures, furnishings, inventory, and articles
of personal property ("Personal Property") now or hereafter attached to or used
in or about the Improvements or that are owned by Mortgagor and are necessary or
useful for the complete and comfortable use and occupancy of the Improvements
for the purposes for which they were to be attached, placed, erected,
constructed or developed, or which Personal Property is or may be used in or
related to the planning, development, financing or operation of the
Improvements, and all renewals of or replacements or substitutions for any of
the foregoing, whether or not the same are or shall be attached to the Land or
Improvements; (h) all building materials and equipment now or hereafter
delivered to and intended to be installed in or on the Land or the Improvements;
(i) all plans and specifications for the Improvements; (j) all contracts
relating to the Land, the Improvements or the Personal Property; (k) all
deposits (including, without limitation, tenants' security deposits), bank
accounts, funds, documents, contract rights, accounts, accounts receivable,
commitments, construction contracts, architectural agreements, general
intangibles (including, without limitation, trademarks, trade names and
symbols), tax credits, instruments, Note and chattel paper arising from or by
virtue of any transactions related to the Land, the Improvements or the Personal
Property or relating directly or indirectly to the ownership, occupancy, use,
operation, and maintenance of the Land, Personal Property, and Improvements; (l)
all permits, licenses, franchises, certificates, and other rights and privileges
obtained in connection with the Land, the Improvements or the Personal Property;
(m) all

                                       2
<PAGE>

proceeds arising from or by virtue of the sale, lease or other disposition of
the Land, the Improvements, the Personal Property or any portion thereof or
interest therein; (n) all proceeds (including, without limitation, premium
refunds) of each policy of insurance relating to the Land, the Improvements or
the Personal Property; (o) all proceeds from the taking of any of the Land, the
Improvements, the Personal Property or any rights appurtenant thereto by right
of eminent domain or by private or other purchase in lieu thereof (including,
without limitation, change of grade of streets, curb cuts or other rights of
access), for any public or quasi public use under any law; (p) all of the
leases, rents, royalties, bonuses, income, receipts, issues, profits, revenues
or other benefits of the Land, the Improvements or the Personal Property,
including, without limitation, cash or securities deposited pursuant to leases
to secure performance by the lessees of their obligations thereunder; (q) all
consumer goods located in, on or about the Land or the Improvements or used in
connection with the use or operation thereof which are owned by Mortgagor; and
(r) other interests of every kind and character that Mortgagor now has or at any
time hereafter acquires in and to the Land, Improvements, and Personal Property
described herein and all property that is used or useful in connection
therewith, including rights of ingress and egress and all reversionary rights or
interests of Mortgagor with respect to such property. The above described
property is collectively referred to herein as the "Mortgaged Property."

         TO HAVE AND TO HOLD the Mortgaged Property, together with the rights,
privileges and appurtenances thereto belonging, unto Mortgagee and its
successors and assigns forever, and Mortgagor hereby binds itself and its
representatives, successors and assigns to warrant and forever defend the
Mortgaged Property unto Mortgagee and its successors and assigns, against the
claim or claims of all persons claiming or to claim the same or any part
thereof, subject to the matters described in Schedule B of Mortgagee's title
insurance policy ("Permitted Matters").

         THIS MORTGAGE IS GIVEN TO SECURE: (a) Payment of all unpaid loan
indebtedness ("Indebtedness") heretofore and hereafter created and evidenced by
a certain promissory note, of even date herewith, made and delivered by
Mortgagor to Mortgagee, in the principal amount of Seven Million Six Hundred
Thirty-Seven Thousand Five Hundred Dollars ($7,637,500.00), payable not later
than May 1, 2004, unless extended by its terms to May 1, 2006, and any and all
renewals, amendments, modifications, increases, reductions and extensions
thereof (hereinafter referred to collectively as the "Note"); and (b)
performance of each and every one of the covenants, conditions and agreements
contained in this Mortgage, the Note, and any other loan agreement, instrument,
affidavit, certificate, guaranty or document heretofore, now or hereafter given
in connection with the closing of the loan evidenced by the Note (hereinafter
collectively referred to as the "Loan Documents").

         In addition to any other debt or obligation secured hereby, this
Mortgage shall also secure unpaid balances of advances heretofore and hereafter
made with respect to the Mortgaged Property, for the payment of taxes,
assessments, insurance premiums or costs incurred for the protection of the
Mortgaged Property.

THIS MORTGAGE DOES NOT COVER REAL PROPERTY IMPROVED OR TO BE IMPROVED WITH A
STRUCTURE CONTAINING SIX RESIDENTIAL UNITS OR LESS, EACH DWELLING UNIT HAVING
ITS OWN SEPARATE COOKING FACILITIES.

                                       3
<PAGE>

         Mortgagor, for itself and its successors and assigns, hereby covenants
with Mortgagee, its successors and assigns, that:

         1. WARRANTIES OF TITLE. Mortgagor holds good and marketable title in
fee simple to the Land and Improvements, and the same are free and clear from
all conditions, restrictions, easements, liens and encumbrances whatsoever
except property taxes not yet due and payable and the Permitted Matters, and
Mortgagor will forever warrant and defend the same with the appurtenances above
mentioned, unto Mortgagee, its successors and assigns, against the lawful claims
of all persons whomsoever, except as noted above. The Mortgaged Property
constitutes the entirety of one or more complete tax parcels. Mortgagor has good
and marketable title to the Personal Property, free and clear of any liens,
charges, encumbrances, security interests and adverse claims whatsoever. If the
interest of Mortgagee in the Mortgaged Property or any part thereof shall be
endangered or shall be attacked, directly or indirectly, Mortgagor hereby
authorizes Mortgagee, at Mortgagor's expense, to take all necessary and proper
steps for the defense of such interest, including the employment of counsel, the
prosecution or defense of litigation, and the compromise or discharge of claims
made against such interest. Any sums so expended by Mortgagee shall be charged
against Mortgagor and collectible in accordance with the terms of Section 14
hereof.

         2. PAYMENTS. Mortgagor will promptly pay the principal evidenced by the
Note and any other indebtedness that may accrue to Mortgagee under the terms of
this Mortgage, together with the interest and late charges on all of said
indebtedness as the same shall become due and payable. Mortgagee may apply and
allocate partial payments as to principal, interest, late charges and other
charges as Mortgagee, in its sole discretion, may elect.

         3. TAXES AND ASSESSMENTS. Mortgagor will promptly pay before
delinquency, all taxes, assessments, charges, fines or impositions, general,
local or special (hereinafter collectively referred to as "Impositions"), levied
upon the Mortgaged Property, or any part thereof, or upon this Mortgage or the
Indebtedness, by any duly or legally constituted public authority, municipality,
township, county, state or the United States, and, upon Mortgagee's request,
exhibit the evidence of the payment thereof to Mortgagee within fifteen (15)
days thereafter; provided that Mortgagor, at Mortgagor's own cost and expense
may, if it shall in good faith so desire, contest the validity or amount of any
Impositions, in which event Mortgagor may defer the payment thereof for such
period as such contest shall be actively prosecuted and shall be pending
undetermined; provided further, however, that Mortgagor shall not allow any such
Impositions so contested to remain unpaid for such length of time as shall
permit all or any portion of the Mortgaged Property, or the lien thereon created
by such item to be contested, to be sold by federal, state, county or municipal
authority for the nonpayment thereof, and that pending any such contest
Mortgagor shall furnish to Mortgagee an indemnity bond secured by a deposit in
cash or other security acceptable to Mortgagee, in the amount of the tax or
assessment being contested by Mortgagor plus a reasonable additional sum to pay
all costs, interest and penalties which may be imposed or incurred in connection
therewith.

                                       4
<PAGE>

         4. REPAIR. Mortgagor will keep all Improvements now or hereafter
erected on the Land in good condition and repair; all Improvements hereafter
erected shall have been erected substantially in accordance with the plans and
specifications therefor, which shall be subject to Mortgagee's prior approval,
and Mortgagor shall comply with the laws, ordinances, regulations and
requirements of any governmental body applicable to the Mortgaged Property the
failure to comply with which would have a material adverse effect on the
Mortgaged Property both during the construction of any Improvements on the Land
and subsequent to the completion thereof.

         5. WASTE; LIENS; MINERALS. Mortgagor will neither commit nor permit any
waste on the Land, nor use nor permit the use thereof or the Improvements for
any illegal purpose, nor cause nor permit the same to become subject to any
superior or inferior lien or encumbrance, except as expressly permitted herein.
Without the prior written consent of Mortgagee, there shall be no drilling or
exploring for, or extraction, removal, or production of minerals from the
surface or subsurface of the Land. The term "minerals" as used herein shall
include, without limitation, oil, gas, casinghead gas, coal, lignite,
hydrocarbons, methane, carbon dioxide, helium, uranium and all other natural
elements, compounds and substances, including sand and gravel.

         6. ALTERATIONS. Mortgagor shall not remove, demolish or alter any of
the Improvements now existing or hereafter constructed on the Land or any of the
Personal Property in or on the Land or Improvements except when incident to the
replacement of any of the items of Personal Property with items of like kind and
value.

         7. STATUS QUO. Except as otherwise expressly permitted herein,
Mortgagor will not sell (by land contract or otherwise), assign, mortgage, lease
or otherwise convey the Mortgaged Property, or any part thereof or interest
therein, legal or equitable, or subdivide or resubdivide or submit to the
condominium form of ownership the same without the written consent of Mortgagee,
which consent may be withheld in Mortgagee's sole discretion. Unless Mortgagee
otherwise agrees in writing, Mortgagor shall not allow changes in the nature of
the occupancy for which the Land and Improvements were intended at the time this
Mortgage was executed, and Mortgagor shall not initiate nor acquiesce in any
change in the zoning classification of the Land or any part thereof without
Mortgagee's prior written consent, which consent may be withheld in Mortgagee's
sole discretion.

         8. TAXES ON MORTGAGE. If, at any time, any law exists or shall be
enacted imposing or authorizing the imposition of any tax upon this Mortgage, or
upon any rights, titles, liens, or security interests created hereby, Mortgagor
shall immediately pay all such taxes, or, at Mortgagee's election and request,
reimburse Mortgagee for payment of same.

         9. SECURITY AGREEMENT. This Mortgage is intended to be a security
agreement pursuant to the Uniform Commercial Code as enacted in the State of New
York ("U.C.C.") for any of the property and fixtures described on pages 2 and 3
hereof which may be subject to a security interest pursuant to the U.C.C., and
Mortgagor hereby grants to Mortgagee a security interest in said property and
fixtures, whether said property is now existing or hereafter acquired, together
with replacements, replacement parts, additions, repairs and accessories
incorporated therein or affixed thereto and, if sold or otherwise disposed of,
the proceeds (including insurance

                                       5
<PAGE>

proceeds) thereof. Mortgagor hereby authorizes Mortgagee to prepare and file
U.C.C. financing statements covering said property and fixtures from time to
time and in such form as Mortgagee may require to perfect or maintain the
priority of Mortgagee's security interest with respect to said property and
fixtures, and Mortgagor shall bear all costs thereof, including all U.C.C.
searches reasonably required by Mortgagee. Mortgagor will not create or suffer
to be created any other security interest in said property and fixtures,
including replacements thereof and additions thereto. Upon the occurrence of any
Event of Default as set forth in Section 18 hereof, Mortgagee shall have the
remedies of a secured party under the U.C.C. and, at Mortgagee's option, may
also invoke the remedies provided in Section 19 hereof with respect to such
property. Anything contained herein to the contrary notwithstanding, THE MAXIMUM
AMOUNT OF PRINCIPAL DEBT OR PRINCIPAL OBLIGATION (NOT INCLUDING PROTECTIVE
ADVANCES (AS HEREAFTER DEFINED)) WHICH IS SECURED BY OR WHICH BY ANY CONTINGENCY
MAY BE SECURED BY THIS MORTGAGE AT THE DATE OF EXECUTION HEREOF OR THEREAFTER IS
$7,637,500.00.

         10. INSURANCE AND INDEMNIFICATION. Mortgagor shall provide, maintain
and keep in force at all times the following policies of insurance:

         (a) Policies of insurance evidencing bodily injury, death or property
damage liability coverages in amounts not less than $2,000,000.00 (combined
single limit), and an excess/umbrella liability coverage in an amount not less
than $5,000,000.00 shall be in effect with respect to Mortgagor. Such policies
must be written on an occurrence basis so as to provide blanket contractual
liability, broad form property damage coverage, and coverage for products and
completed operations;

         (b) "Special Cause of Loss" insurance on the Improvements in an amount
not less than the full insurable value on a replacement cost basis of the
insured Improvements and Personal Property related thereto;

         (c) Worker's compensation insurance (including employer's liability
insurance, if available and requested by Mortgagee) for all employees of
Mortgagor engaged on or with respect to the Land and the Improvements in such
amounts as are satisfactory to Mortgagee, or, if such limits are established by
law, in such amounts;

         (d) Business income and/or business interruption insurance and/or loss
of "rental value" insurance in an amount not less than the appraised rentals for
the Mortgaged Property for a minimum of twelve (12) months;

         (e) If the Land, or any part thereof, lies within a "special flood
hazard area" as designated on maps prepared by the Department of Housing and
Urban Development, a National Flood Insurance Association standard flood
insurance policy, plus insurance from a private insurance carrier if necessary,
for the duration of the Loan in the amount of the full insurable value of the
Improvements and Personal Property; and

                                       6
<PAGE>

         (f) Such other insurance, including, without limitation, errors and
omissions insurance with respect to the contractors, architects and engineers,
and earthquake insurance, if necessary, and in such amounts, as may from time to
time be required by Mortgagee against the same or other hazards.

         Each policy of insurance required by the terms of this Mortgage shall
contain an endorsement by the insurer that any loss shall be payable in
accordance with the terms of such policy notwithstanding any act or negligence
of Mortgagor which might otherwise result in forfeiture of said insurance and
the further agreement of the insurer waiving all rights of set-off, counterclaim
or deductions against Mortgagor. In addition, each policy shall contain an
agreement by the insurer that such policy shall not be cancelled or changed
except upon not less than thirty (30) days prior written notice delivered to
Mortgagee.

         All such insurance policies and renewals thereof shall be written by
companies acceptable to Mortgagee, shall be in a form acceptable to Mortgagee
and shall include a standard mortgage clause in favor of and in form acceptable
to Mortgagee. Mortgagor shall promptly furnish to Mortgagee a certificate of
said insurance on Accord forms 25 and 27, or other forms acceptable to
Mortgagee, together with copies of all renewal notices and all receipts of paid
premiums. At least thirty (30) days prior to the expiration date of any such
policy, Mortgagor shall deliver to Mortgagee a renewal certificate in form
satisfactory to Mortgagee.

         If Mortgagee is made a party defendant to any litigation concerning
this Mortgage or the Mortgaged Property or any part thereof or interest therein,
or the occupancy thereof by Mortgagor, then Mortgagor shall indemnify, defend
and hold Mortgagee harmless from all liability by reason of said litigation,
including reasonable attorneys' fees and expenses incurred by Mortgagee in any
such litigation, whether or not any such litigation is prosecuted to judgment.
Mortgagor waives any and all right to claim or recover against Mortgagee, its
officers, employees, agents and representatives, for loss of or damage to
Mortgagor, the Mortgaged Property, other property of Mortgagor or the property
of others under control of Mortgagor from any cause insured against or required
to be insured against by the provisions of this Mortgage.

         Mortgagor shall not take out separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under this
Section unless Mortgagee has approved the insurance company and the form and
content of the insurance policy, including, without limitation, the naming
thereon of Mortgagee as a named insured with loss payable to Mortgagee under a
standard mortgage clause of the character above described. Mortgagor shall
immediately notify Mortgagee whenever any such separate insurance is taken out
and shall promptly deliver to Mortgagee copies of the policies or binders
evidencing such insurance.

         Nothing contained in this Section shall prevent Mortgagor from keeping
the Mortgaged Property insured or causing the same to be insured against the
risks referred to in this Section under a policy or policies of blanket
insurance which may cover other property not subject to the lien of this
Mortgage; provided, however, that any such policy of blanket insurance (i) shall
specify therein the amount of the total insurance allocated to the Mortgaged
Property, which amount shall be not less than the amount otherwise required to
be carried under this Mortgage;

                                       7
<PAGE>

(ii) shall not contain any clause which would result in the insured thereunder
being required to carry insurance with respect to the property covered thereby
in an amount not less than any specific percentage of the full insurable value
of such property in order to prevent the insured named therein from becoming a
co-insurer of any loss with the insurer under such policy; and (iii) shall in
all other respects comply with the provisions of this Mortgage.

         Notwithstanding anything to the contrary contained in this Section, in
the event that the proceeds (the "Proceeds") payable with respect to any
casualty shall be less than or equal to $250,000.00, then Mortgagor shall have
the right to settle the insurance claim, and the right to retain the Proceeds,
so long as Mortgagor shall restore the Mortgaged Property to its condition prior
to such casualty, in a good and workmanlike manner, in compliance with any
applicable legal requirements and the requirements of any lease, free and clear
of liens, and shall remit to Mortgagee promptly upon completion of such
restoration any remaining balance of such Proceeds not used in the restoration
of the Mortgaged Property for application to the principal of the Indebtedness.

         If all of the following apply: (i) the Proceeds have been deposited
with Mortgagee; (ii) in the case of insurance proceeds, the insurance carrier
has not denied liability to a named insured; (iii) Mortgagee shall have been
furnished with an estimate of the cost of restoration accompanied by an
architect's certificate as to such costs and appropriate final plans and
specifications for reconstruction of the Improvements, all of which shall be
approved by Mortgagee; (iv) the Improvements so restored or rebuilt shall be of
at least equal value and substantially the same character as prior to the damage
or destruction and appropriate for the purposes for which they were originally
erected; (v) Mortgagor shall have furnished Mortgagee with evidence satisfactory
to Mortgagee that all Improvements so restored and/or reconstructed and their
use fully comply with all zoning and building laws, ordinances and regulations,
and with all other applicable federal, state, and municipal laws and
requirements; (vi) to the extent that the estimated cost of restoration exceeds
the Proceeds available, Mortgagor shall have furnished a satisfactory bond of
completion or deposited with Mortgagee such sums as may be necessary to pay such
excess costs; (vii) Mortgagee shall have received notice within thirty (30) days
after the fire or other hazard or of the condemnation proceedings specifying the
date of such fire or other hazard or the date the notice of condemnation
proceedings was received and the request to Mortgagee to make said Proceeds
available to Mortgagor; (viii) the aggregate monthly net income under all
Leases, together with the proceeds of any business interruption insurance with
respect thereto, shall be sufficient to pay during the period of reconstruction
the monthly installments required to be paid upon the Indebtedness as well as
all impound payments which may be required for taxes and insurance, and
following reconstruction shall be sufficient to pay the aforesaid sums as well
as all other operating costs and charges of the Mortgaged Property; (ix)
Mortgagor shall not then be in default under the Loan Documents, and (x)
Mortgagee determines in its sole and absolute discretion that such restoration
can be completed at least three (3) months prior to the maturity date of the
Note; then the Proceeds, less the actual costs, fees and expenses, if any,
incurred in connection with adjustment of loss and Mortgagee's administrative
expenses relating to such loss and the disbursement of the Proceeds shall be
applied by Mortgagee to the payment of all the costs of the aforesaid
restoration, repairs, replacement, rebuilding or alterations, including the cost
of temporary repairs or for the protection of property pending the completion of
permanent

                                       8
<PAGE>

restoration, repairs, replacements, rebuilding or alterations (all of which
temporary repairs, protection of property and permanent restoration, repairs,
replacement, rebuilding or alterations are hereinafter collective referred to as
the "Restoration"), and shall be paid out from time to time as such Restoration
progresses upon the written request of Mortgagor if the work for which payment
is requested has been done in a good and workmanlike manner and substantially in
accordance with the plans and specifications therefor. Each request shall be
accompanied by the following:

         (a) A certificate signed by Mortgagor, dated not more than thirty (30)
days prior to such request, setting forth the following:

                  (i) That the sum then requested either has been paid, or is
     justly due to contractors, subcontractors, materialmen, engineers,
     architects or other persons who have rendered services or furnished
     materials for the restoration therein specified or have paid for the same,
     the names and addresses of such persons, a brief description of such
     services and materials, the several amounts so paid or due to each of said
     persons in respect thereof (together with supporting statements and
     invoices for the same), that no part of such expenditures has been or is
     being made the basis of any previous or then pending request for the
     withdrawal of Proceeds or has been made out of any of the Proceeds received
     by Mortgagor, and that the sum then requested does not exceed the value of
     the services and materials described in the certificate.

                  (ii) That, except for the amount, if any, stated pursuant to
     the foregoing subclause (a)(i) in such certificate to be due for services
     or materials, there is no outstanding indebtedness known to the persons
     signing such certificate, after due inquiry, which is then due for labor,
     wages, materials, supplies or services in connection with such Restoration.

                  (iii) That the costs, as estimated by the persons signing such
     certificate, of the Restoration required to be done subsequent to the date
     of such certificate in order to complete and pay for the same, do not
     exceed the Proceeds, plus any amount or security approved by Mortgagee and
     deposited by Mortgagor to defray such costs and remaining in the hands of
     Mortgagee after payment of the sum requested in such certificate.

         (b) A title insurance report or other evidence satisfactory to
Mortgagee to the effect that there has not been filed with respect to the
Mortgaged Property, or any part thereof, any vendor's, contractor's, laborer's,
materialmen's, or other lien which has not been discharged of record or bonded.

         (c) A certificate signed by the architect and/or engineer in charge of
the Restoration, who shall be selected by Mortgagor and approved in writing by
Mortgagee, certifying to the facts set forth in subclause (i) above, and that
the Restoration is proceeding in accordance with the plans and specifications
approved by Mortgagee and in accordance with all zoning, subdivision and other
governmental laws, ordinances, rules and regulations. Upon compliance with the
foregoing provisions, Mortgagee shall, out of Proceeds (and the amount of
security approved by

                                       9
<PAGE>

Mortgagee, if any, deposited by Mortgagor to defray the costs of the
Restoration), pay or cause to be paid to Mortgagor or the persons named
(pursuant to subclause (a)(i) above) in such certificate the respective amounts
stated therein to have been paid by Mortgagor or to be due to them, as the case
may be.

         If the Proceeds at the time held by Mortgagee, less the actual costs,
fees and expenses, if any, incurred in connection with the adjustment of the
loss and Mortgagee's administrative expenses relating to such loss and the
disbursement of the Proceeds, shall be, in Mortgagee's sole and absolute
judgment, insufficient to pay the entire cost of the Restoration, Mortgagor
shall deposit with Mortgagee any such deficiency prior to disbursement of any
additional portion of the Proceeds.

         No payment made prior to the final completion of the Restoration shall
exceed ninety percent (90%) of the value of the work performed from time to
time, and at all times the undisbursed balance of said Proceeds remaining in the
hands of Mortgagee shall be at least sufficient to pay for the cost of
completion of the Restoration free and clear of liens.

         Final payment shall be made upon delivery of an architect's certificate
and a certification by one of Mortgagee's appraisers as to completion in
accordance with the final plans and specifications and compliance with all
zoning, building, subdivision and other governmental laws, ordinances, rules,
and regulations, and either the presentation of effective lien waivers from all
contractors, subcontractors and materialmen, or the expiration of the period
provided under applicable law for the filing of mechanic's and materialmen's'
liens. Mortgagee may at its option require an endorsement to Mortgagee's policy
of title insurance insuring the continued priority of the lien of this Mortgage
as to all sums advanced hereunder, such endorsement to be in form and substance
satisfactory to Mortgagee and paid for by Mortgagor.

         Upon completion of the Restoration in a good and workmanlike manner in
accordance herewith, and provided that Mortgagee has received satisfactory
evidence that the Restoration has been paid for in full and the Mortgaged
Property is free and clear of all liens, any balance of the Proceeds at the time
held by Mortgagee (after reimbursement to Mortgagee of all costs and expenses of
Mortgagee, including administrative expenses, in connection with recover of the
same and disbursement of such Proceeds for the Restoration), if any, shall be
applied as follows: (i) to the extent that such balance of the Proceeds is equal
to or less than the amount, if any, by which the value of the Mortgaged Property
prior to such damage or destruction exceeds the value of the Mortgaged Property
after such Restoration (for these purposes, the value of the Mortgaged Property
shall be determined by Mortgagee in its discretion), then the portion of the
balance of the Proceeds equal to such excess amount shall be applied to the
payment or prepayment (without any prepayment premium) of the principal balance
of the Indebtedness in such order as Mortgagee may determine, and any amounts so
applied shall reduce the Indebtedness pro tanto; and (ii) to the extent that the
balance of the Proceeds exceeds such excess amount, such portion of the balance
of the Proceeds shall be paid to Mortgagor.

         Mortgagee shall cause Proceeds held by it pursuant to this Section to
be maintained in one or more interest-bearing accounts in accordance with
Mortgagee's customary practices for

                                       10
<PAGE>

the payment of interest on account balances, including, without limitation,
minimum balance requirements.

         If the insurance proceeds are applied to the payment of the sums
secured by this Mortgage, any such application of proceeds shall not extend or
postpone the due dates of the monthly installments referred to in the Note or
change the amounts of such installments. If Mortgagee acquires title to the
Mortgaged Property through remedial action or transfer in lieu thereof,
Mortgagee shall have all of the right, title and interest of Mortgagor in and to
any insurance policies and unearned premiums thereon and in and to the proceeds
resulting from any damage to the Mortgaged Property prior to such acquisition.

         If Mortgagee is made a party defendant to any litigation concerning
this Mortgage or the Mortgaged Property or any part thereof or interest therein,
or the occupancy thereof, then Mortgagor shall indemnify, defend and hold
Mortgagee harmless from all liability by reason of said litigation, including
reasonable attorneys' fees and expenses incurred by Mortgagee in any such
litigation, whether or not any such litigation is prosecuted to judgment.
Mortgagor waives any and all right to claim or recover against Mortgagee, its
officers, employees, agents and representatives, for loss of or damage to
Mortgagor, the Mortgaged Property, other property of Mortgagor or the property
of others under control of Mortgagor from any cause insured against or required
to be insured against by the provisions of this Mortgage.

         11. ESCROW. Mortgagor, in order more fully to protect the security of
this Mortgage, does hereby covenant and agree that, after the occurrence of an
Event of Default that has not been waived in writing by Mortgagee, together with
and in addition to the payment of taxes, assessments and insurance premiums
above provided, it will, upon written request of Mortgagee pay to Mortgagee on
the first day of each month until the Indebtedness is fully paid, a sum equal to
one-twelfth (1/12) of the known or estimated yearly taxes, assessments and
premiums for such insurance as may be required by the terms hereof. Mortgagee
shall hold such monthly payments which may be mingled with its general funds,
without obligation to pay interest thereon, unless otherwise required by
applicable law, to pay such taxes, assessments and insurance premiums when due.
Mortgagor agrees that sufficient funds will be so accumulated for the payment of
said charges one month prior to the due date thereof and that it will furnish
Mortgagee with proper statements covering the same fifteen (15) days prior to
the due dates thereof. In the event of foreclosure of this Mortgage, or if
Mortgagee should take a deed in lieu of foreclosure, the amount so accumulated
will be credited on account of the unpaid principal or interest. If the total of
the monthly payments as made under this Section shall exceed the payments
actually made by Mortgagee, such excess shall be credited on subsequent monthly
payments of the same nature, but if the total of such monthly payments so made
under this Section shall be insufficient to pay such taxes, assessments and
insurance premiums then due, then said Mortgagor shall pay upon demand the
amount necessary to make up the deficiency, which payments shall be secured by
this Mortgage. To the extent that all the provisions of this Section for such
payments of taxes, assessments and insurance premiums to Mortgagee are complied
with, said Mortgagor shall be relieved of compliance with the covenants
contained in Sections 3 and 10 herein as to the amounts paid only, but nothing
contained in this Section shall be construed as in any way limiting the rights
of Mortgagee at its option to pay any and all of said items when due.

                                       11
<PAGE>

         12. FURTHER ASSURANCES. Mortgagor shall furnish to Mortgagee evidence
of the title of Mortgagor to the Mortgaged Property at the execution and
delivery hereof and from time to time hereafter as may be deemed necessary by
and satisfactory to Mortgagee, and Mortgagor shall promptly pay the cost of said
title evidence when due and payable.

         Mortgagor, upon the request of Mortgagee, will execute, acknowledge,
deliver, file and record such further instruments and do such further acts as
may be necessary, desirable or proper to carry out the purposes of the Loan
Documents and to subject to the liens and security interests created thereby any
property intended by the terms thereof to be covered thereby, including
specifically, but without limitation, any renewals, additions, substitutions,
replacements, improvements or appurtenances to the Mortgaged Property.

         13. CONDEMNATION. If all or any part of the Land or Improvements are
damaged, taken or acquired, either temporarily or permanently, in any
condemnation proceeding, or by exercise of the right of eminent domain, or, with
Mortgagee's consent, by any conveyance in lieu thereof, the amount of any award
or other payment for such taking, or conveyance or damages made in consideration
thereof, to the extent of the full amount of the then remaining unpaid
Indebtedness, is hereby assigned to Mortgagee who is empowered to collect and
receive the same and to give proper receipts therefor in the name of Mortgagor,
and the same shall be paid forthwith to Mortgagee. The proceeds shall be
settled, deposited and held consistent with the terms and conditions of Section
10. If Mortgagor receives notice, written or unwritten, of any actual, intended
or threatened condemnation or eminent domain proceeding, Mortgagor shall
forthwith furnish a copy of such notice to Mortgagee if such notice was written,
or inform Mortgagee in writing if such notice was unwritten.

         14. ADVANCES SECURED BY MORTGAGE. Upon an Event of Default which shall
include Mortgagor's failure to comply with any of these covenants and agreements
as to the payment of taxes, assessments, insurance premiums, repairs, protection
of the Mortgaged Property or Mortgagee's lien thereon, and other charges and the
costs of procurement of title evidence and insurance as aforesaid, Mortgagee
may, at its option, pay the same, and any sums so paid by Mortgagee, together
with the reasonable fees of counsel employed by Mortgagee in consultation and in
connection therewith (collectively "Protective Advances"), shall be charged
against Mortgagor, shall be immediately due and payable by Mortgagor, shall bear
interest at the Default Rate of Interest, as defined in the Note, and shall be a
lien upon the Mortgaged Property, and be secured by this Mortgage, and may be
collected in the same manner as the principal debt hereby secured.

         15. SUBROGATION. Mortgagee shall be subrogated for its further security
to the lien, although released of record, of any and all encumbrances paid out
of the proceeds of the loan secured by this Mortgage; provided, however, that
the terms and provisions hereof shall govern the rights and remedies of
Mortgagee and shall supersede the terms, provisions, rights, and remedies under
the lien or liens to which Mortgagee is subrogated hereunder.

                                       12
<PAGE>

         16. ASSIGNMENT OF RENTS AND LEASES.

         (a) Mortgagor hereby absolutely and unconditionally assigns, transfers
and sets over unto Mortgagee and Mortgagee's successors and assigns, all present
and future leases covering all or any part of the Mortgaged Property ("Leases"),
together with any extensions or renewals thereof and any guarantees of any
tenants' obligations thereunder, and all of the rents, royalties, bonuses,
income, receipts, revenues, issues and profits now due or which may hereafter
become due under the Leases or any extensions or renewals thereof, as well as
all moneys due and to become due to Mortgagor under the Leases for services,
materials or installations supplied whether or not the same were supplied under
the terms of the Leases, all liquidated damages following default under the
Leases and all proceeds payable under any policy of insurance covering loss of
rents resulting from untenantability caused by damage to any part of the
Mortgaged Property (such rents, income, receipts, revenues, issues, profits and
other moneys assigned hereby are hereinafter collectively called "Rents"),
together with any and all rights and remedies which Mortgagor may have against
any tenant under any of the Leases or others in possession of the Mortgaged
Property or any part thereof for the collection or recovery of Rents so
assigned. Mortgagor is hereby expressly permitted to enter into Leases of the
Mortgaged Property subject to the terms and conditions contained herein. Prior
to an Event of Default (as hereinafter defined) Mortgagor shall have a license
to collect and receive all Rents as trustee for the benefit of Mortgagee and
Mortgagor.

         (b) Mortgagor hereby represents, warrants and agrees that:

              (i) Mortgagor has good title to the Leases and Rents hereby
              assigned and has the right, power and capacity to make this
              assignment and no person or entity other than Mortgagor has or
              will have any right, title or interest in or to the Leases or
              Rents.

              (ii) Mortgagor will, at Mortgagor's sole cost and expense, perform
              and discharge all of the obligations and undertakings of the
              landlord under the Leases and give prompt notice to Mortgagee of
              any failure to do so. Mortgagor will use commercially reasonable
              efforts to enforce or secure the performance of all material
              obligations and undertakings of the tenants under the Leases and
              will appear in and prosecute or defend any action or proceeding
              arising under, or in any manner connected with, the Leases or the
              obligations and undertakings of the tenants thereunder.

              (iii) Without Mortgagee's prior consent, Mortgagor will not (1)
              pledge, transfer, mortgage or otherwise encumber or assign the
              Leases or the Rents; (2) waive, excuse, condone or in any manner
              release or discharge any tenant under any of the Leases exceeding
              5,000 square feet; (3) disaffirm, cancel, terminate or consent to
              any surrender of any of the Leases exceeding 5,000 square feet;
              (4) modify, extend or in any way alter the terms of any of the
              Leases exceeding 5,000 square feet so as to reduce or diminish or
              postpone the payments of Rents; (5)

                                       13
<PAGE>

              permit any assignment of any of the Leases; or (6) collect Rents
              more than thirty (30) days prior to accrual.

              (iv) Mortgagor will give immediate notice to Mortgagee of any
              notice Mortgagor receives from any tenant under the Leases,
              specifying any claimed material default by any party under the
              Leases exceeding 5,000 square feet.

              (v) Mortgagor hereby assigns any settlement payment for damages
              for termination of any of the Leases with Anchor Tenants (as said
              term is defined in the Note) under the Federal Bankruptcy Code, or
              under any other federal, state, or local statute, to Mortgagee, to
              be applied to the Indebtedness as Mortgagee may elect, and agrees
              to endorse any check for such payment to the order of Mortgagee.

              (vi) All existing Leases are valid, unmodified and in full force
              and effect and Mortgagor has not performed any act or executed any
              instrument which might prevent Mortgagee from operating under any
              of the terms and provisions thereof or which would limit Mortgagee
              in such operation.

              (vii) Each of the Leases exceeding 5,000 square feet will be in
              form and content satisfactory to Mortgagee. Mortgagor shall not
              enter any Leases at below market rents without Mortgagee's
              consent. Mortgagor will deliver to Mortgagee certified and correct
              copies of each of the Leases once fully executed. Upon request of
              Mortgagee, Mortgagor shall deliver to Mortgagee a subordination
              and attornment agreement from each Anchor Tenant and such estoppel
              certificates from the tenants under the Leases as Mortgagee shall
              reasonably request.

         (c)  Mortgagee shall not be obligated to perform or discharge any
obligation or duty to be performed or discharged by Mortgagor under any of the
Leases; and Mortgagor hereby agrees to indemnify Mortgagee for, and to save
Mortgagee harmless from, any and all liability, damage or expense arising from
any of the Leases or from this assignment, including, without limitation, claims
by tenants for security deposits or for rental payments more than one (1) month
in advance and not delivered to Mortgagee. All amounts indemnified against
hereunder, including reasonable attorneys' fees, if paid by Mortgagee shall bear
interest at the Default Rate of Interest, as defined in the Note, and shall be
payable by Mortgagor immediately without demand and shall be secured hereby.
This assignment shall not place responsibility for the control, care,
management, or repair of the Premises upon Mortgagee, or make Mortgagee
responsible or liable for any negligence in the management, operation, upkeep,
repair or control of same resulting in loss or damage or injury or death to any
party.

         (d)  Upon the occurrence of an Event of Default as hereinafter
              defined:

              (i) All Rents assigned hereunder shall be paid directly to
              Mortgagee, and Mortgagee may notify the tenants under the Leases
              (or any other parties in possession of the Mortgaged Property) to
              pay all of the Rents directly to

                                       14
<PAGE>

                  Mortgagee at the address specified in Section 25 hereof, for
                  which this assignment shall be sufficient warrant;

                  (ii) Mortgagee shall have the right to forthwith enter and
                  take possession of the Mortgaged Property and to manage,
                  operate, lease and develop the same; to collect as hereunder
                  provided all or any Rents payable under the Leases; to make
                  repairs as Mortgagee deems appropriate; and to perform such
                  other acts in connection with the management, operation,
                  development, leasing and construction of the Mortgaged
                  Property as Mortgagee, in its sole discretion, may deem
                  proper; and

                  (iii) Mortgagee shall have the right to forthwith enter into
                  and upon the Mortgaged Property and take possession thereof,
                  and to appoint an agent, or in the event of the institution of
                  foreclosure proceedings to have a receiver appointed for the
                  collection of the Rents.

In the event that Mortgagee shall pursue its remedies under subsection (ii) or
(iii) above, the net income, after allowing a reasonable fee for the collection
thereof and the management of the Mortgaged Property, may be applied toward the
payment of taxes, assessments, insurance premiums, repairs, protection of the
Mortgaged Property or Mortgagee's lien thereon, and other charges against the
Mortgaged Property and the costs of procurement of such insurance and of
evidence of title to the Mortgaged Property, or any of them, or in the reduction
of the Indebtedness and the payment of interest as Mortgagee may elect. If the
Rents are not sufficient to meet the costs, if any, of taking control of and
managing the Mortgaged Property and collecting the Rents, any funds expended by
Mortgagee for such purposes shall become indebtedness of Mortgagor to Mortgagee
secured by this Mortgage. Unless Mortgagee and Mortgagor agree in writing to
other terms of payment, such amounts shall be payable upon demand from Mortgagee
to Mortgagor and shall bear interest from the date of disbursement at the
Default Rate of Interest stated in the Note.

         The exercise or failure to exercise any of the above remedies shall not
in any way preclude or abridge the right of Mortgagee to foreclose this Mortgage
or to take any other legal or equitable action thereon. Mortgagee shall have
such rights or privileges as aforesaid regardless of the value of the Mortgaged
Property given as security hereunder, and regardless of the solvency or
insolvency of any party bound for the payment of the Indebtedness or the other
sums hereby secured.

         (e) Mortgagor hereby authorizes and directs the tenants under the
Leases to pay Rents to Mortgagee upon written demand by Mortgagee, without
further consent of Mortgagor, and the tenants may rely upon any written
statement delivered by Mortgagee to the tenants. Any such payment to Mortgagee
shall constitute payment to Mortgagor under the Leases.

         17. NO WAIVER. The failure of Mortgagee to exercise any option to
declare maturity of the principal debt or any other sums hereby secured under
any provision of any of the Loan Documents, or to forbear from exercising any
right or remedy available to Mortgagee under any

                                       15
<PAGE>

provision of any of the Loan Documents, shall not be taken or deemed a waiver of
the right to exercise such option, right or remedy, or declare such maturity as
to such past, continuing or subsequent violation of any of the covenants and
agreements of any of the Loan Documents. Acceptance by Mortgagee of partial
payments shall not constitute a waiver of any Event of Default, as hereinafter
defined. From time to time, Mortgagee may, at Mortgagee's option, without giving
notice to or obtaining the consent of Mortgagor, Mortgagor's successors or
assigns, any junior lienholder or any guarantor of any portion of the
Indebtedness ("Guarantor"), without liability on Mortgagee's part and
notwithstanding Mortgagor's breach of any covenant or agreement of Mortgagor in
this Mortgage, extend the time for payment of the Indebtedness, or any part
thereof, reduce the payments thereon, release anyone liable on any of said
Indebtedness, accept a renewal note or notes therefor, modify the terms and time
of payment of said Indebtedness, release from the lien of this Mortgage any part
of the Mortgaged Property, take or release other or additional security,
reconvey any part of the Mortgaged Property, consent to any map or plan of the
Mortgaged Property, consent to the granting of any easement, join in any
extension or subordination agreement, agree in writing with Mortgagor to modify
the rate of interest or period of amortization of the Note, or change the amount
of the monthly installments payable thereunder. Any actions taken by Mortgagee
pursuant to the terms of this Section shall not affect the obligation of
Mortgagor or Mortgagor's successors or assigns to pay the sums secured by this
Mortgage and to observe the covenants of Mortgagor contained herein, shall not
affect the guaranty of Guarantor, pursuant to the guaranty executed in
connection herewith ("Guaranty") and shall not affect the lien or priority of
lien of this Mortgage on the Mortgaged Property. Mortgagor shall pay Mortgagee a
reasonable service charge, together with such title insurance premiums and
attorney's fees as may be incurred at Mortgagee's option for any such action if
taken at Mortgagor's request.

         18. DEFAULT. The term "Event of Default" shall have the meaning as
defined in Section 5.1 of the Note.

         19. REMEDIES. In case of an Event of Default, Mortgagee may, at any
time thereafter, at its option and without notice, exercise any or all of the
following remedies:

         (a) ACCELERATION. Declare the entire Indebtedness due and payable, and
it shall thereupon be immediately due and payable;

         (b) FORECLOSURE. Foreclose this Mortgage by instituting a foreclosure
suit in any court having jurisdiction. Mortgagor hereby waives all right to
appraisal, which appraisal may be obtained at the option of Mortgagee;

         (c) OFFSET RIGHTS. Apply in satisfaction of the Indebtedness or any
amount at any time to become due or payable in connection with the ownership,
occupancy, use, restoration or repair of the Mortgaged Property, any deposits or
other sums credited by or due from Mortgagee to Mortgagor;

         (d) CURE OF DEFAULT. Without releasing Mortgagor from any obligation
hereunder or under the Loan Documents, cure any Event of Default. In connection
therewith, Mortgagee may

                                       16
<PAGE>

enter upon the Mortgaged Property and do such acts and things as Mortgagee deems
necessary or desirable to protect the Mortgaged Property, including, without
limitation: (i) paying, purchasing, contesting or compromising any encumbrance,
charge, lien, claim or property taxes, (ii) paying any insurance premiums, and
(iii) employing counsel, accountants, contractors and other appropriate persons
to assist Mortgagee in the foregoing. Should Mortgagee make any such payments,
the amount thereof shall be secured hereby and Mortgagor shall reimburse
Mortgagee therefor immediately upon demand, and said amount shall bear interest
at the Default Rate of Interest specified in the Note until repaid;

         (e) POSSESSION OF MORTGAGED PROPERTY. Take physical possession of the
Mortgaged Property and of all books, records, documents and accounts relating
thereto and exercise, without interference from Mortgagor, any and all rights
which Mortgagor has with respect to the Mortgaged Property, including, without
limitation, the right at Mortgagor's expense to rent and lease the same, to hire
a professional property manager for the Mortgaged Property, and to apply any
rents, royalties, income or profits collected to the reduction of the
Indebtedness without in any way curing or waiving any default. If necessary to
obtain possession as provided for above, Mortgagee may, without exposure to
liability from Mortgagor or other persons, invoke any and all legal remedies to
dispossess Mortgagor, including, without limitation, one or more actions for
forcible entry and detainer, trespass and restitution. In connection with any
action taken by Mortgagee pursuant to this subparagraph (e), Mortgagee shall not
be liable for any loss sustained by Mortgagor resulting from any failure to let
the Mortgaged Property or from any other act or omission of Mortgagee in
managing the Mortgaged Property unless caused by the willful misconduct or gross
negligence of Mortgagee, nor shall Mortgagee be obligated to perform or
discharge any obligation, duty or liability under any Lease or by reason of any
Loan Document. Mortgagor hereby agrees to indemnify, hold harmless and defend
Mortgagee from and against any liability, loss or damage incurred by Mortgagee
under any lease or under the Loan Documents as a result of Mortgagee's exercise
of rights or remedies under any of the Loan Documents. Should Mortgagee incur
any such liability, the amount thereof shall be secured hereby and Mortgagor
shall reimburse Mortgagee therefor immediately upon demand, and said amount
shall bear interest at the Default Rate of Interest specified in the Note until
repaid. Mortgagee shall have full power to make from time to time all
alterations, renovations, repairs and replacements to the Mortgaged Property as
may seem proper to Mortgagee.

         (f) REMEDIES UNDER STATE LAW. Mortgagee shall have the right to
exercise all rights under laws of the New York, whether or not herein specified,
for the protection of Mortgagee's interest in the Mortgaged Property.

         (g) RECEIVER. Secure the appointment of a receiver or receivers, as a
matter of right for the Mortgaged Property whether such receivership be incident
to a proposed sale of such Mortgaged Property or otherwise, and without regard
to the value of the Mortgaged Property or the solvency of Mortgagor. Mortgagor
hereby consents to the appointment of such receiver or receivers, waives any and
all defenses to such appointment and agrees not to oppose any application
therefor by Mortgagee.

                                       17
<PAGE>

         (h) UNIFORM COMMERCIAL CODE REMEDIES. Exercise any and all rights of a
secured party with respect to any portion of the Mortgaged Property governed
under the UCC and in conjunction with, in addition to or in substitution for
those rights and remedies:

                  (i) take possession of, assemble and collect such Mortgaged
                  Property or render it unusable by Mortgagor; and

                  (ii) require Mortgagor to assemble such Mortgaged Property and
                  make it available at any place Mortgagee may designate so as
                  to allow Mortgagee to take possession or dispose of such
                  Mortgaged Property.

         Written notice mailed to Mortgagor, as provided herein, fifteen (15)
days prior to the date of public sale of such Mortgaged Property or prior to the
date after which private sale of such Mortgaged Property will be made, shall be
deemed to have been a public sale conducted in a commercially reasonable manner,
if held contemporaneously with a sale of Mortgaged Property as provided in this
Mortgage. Public sale of such Mortgaged Property by auction conducted in any
county in which such Mortgaged Property was reposed or in which the Land is
located, after advertisement of the time and place of the sale in a newspaper
circulated in the county, city or village in which the sale is to be held, shall
be considered to be a commercially reasonable disposition of such Mortgaged
Property. In the event of a foreclosure sale, whether made by Mortgagee under
the terms hereof, or under judgment of a court, such Mortgaged Property and the
other parts of the Mortgaged Property may, at the option of Mortgagee, be sold
in parts or as a whole. It shall not be necessary that Mortgagee take possession
of such Mortgaged Property prior to the time that any sale pursuant to the
provisions of this subparagraph is conducted and it shall not be necessary that
such Mortgaged Property be present at the location of such sale;

         A CARBON, PHOTOGRAPHIC OR OTHER REPRODUCTION OF THIS MORTGAGE OR ANY
FINANCING STATEMENT RELATING TO THIS INDENTURE SHALL BE SUFFICIENT AS A
FINANCING STATEMENT. THIS INDENTURE IS EFFECTIVE AND SHALL BE EFFECTIVE AS A
FINANCING STATEMENT FILED AS A FIXTURE FILING WITH RESPECT TO ALL GOODS WHICH
ARE OR ARE TO BECOME FIXTURES INCLUDED WITHIN THE PROPERTY AND IS TO BE FILED
FOR RECORD IN THE REAL ESTATE RECORDS OF THE LOCATION IN THE STATE WHERE THE
PROPERTY IS SITUATED. THE MAILING ADDRESS OF MORTGAGEE AND THE ADDRESS OF
MORTGAGOR FROM WHICH INFORMATION CONCERNING THE SECURITY INTEREST MAY BE
OBTAINED ARE SET FORTH ON THE COVER SHEET HEREOF;

         (i) SALE. Sell the Mortgaged Property under applicable laws and
requirements of the State of New York;

         (j) JUDICIAL ACTIONS. Commence and maintain an action or actions in any
court of competent jurisdiction to foreclose this Mortgage pursuant to the laws
of New York or to obtain specific enforcement of the covenants of Mortgagor
hereunder. Mortgagor agrees that such covenants shall be specifically
enforceable by injunction or any other appropriate equitable remedy;

                                       18
<PAGE>

         (k) SUBROGATION. Have and exercise all rights and remedies of any
person, entity or body politic to whom Mortgagee renders payment or performance
in connection with the exercise of its rights and remedies under the Loan
Documents, including, without limitation, any rights or remedies under any
mechanics' or vendors' lien or liens, superior titles, mortgages, deeds of
trust, liens, encumbrances, rights, equities and charges of all kinds heretofore
or hereafter existing on the Mortgaged Property to the extent that the same are
paid or discharged from the proceeds of the Note whether or not released of
record;

         (l) RIGHT TO PURCHASE. At any sale or sales of the Mortgaged Property
pursuant to this Section, Mortgagee shall have the right to purchase the
Mortgaged Property being sold, and in such cases the right to credit against the
amount of the bid made therefor (to the extent necessary to satisfy such bid),
the amount of the Indebtedness then due; and

         (m) OTHER. Take such other actions or commence such other proceedings
as Mortgagee deems necessary or advisable to protect its interest in the
Mortgaged Property and its ability to collect the Indebtedness as are available
under the laws of New York.

         Any sums advanced by Mortgagee under this Section 19 shall bear
interest at the Default Rate of Interest specified in the Note, shall be payable
by Mortgagor on demand and, together with such interest, shall constitute a part
of the Indebtedness.

         All sums realized by Mortgagee under this Section 19, less all costs
and expenses incurred by Mortgagee under this Section 19, including, without
limitation, attorneys' fees and disbursements, property management fees, costs
of alterations, renovations, repairs and replacements made or authorized by
Mortgagee and all expenses incident to Mortgagee taking possession of the
Mortgaged Property, and such sums as Mortgagee deems appropriate as a reserve to
meet future expenses of the Mortgaged Property to be incurred within six (6)
months of foreclosure, shall be applied to the Indebtedness in such order as
Mortgagee shall determine. Thereafter, any balance shall be paid to the person
or persons legally entitled thereto.

         20. HOLDING OVER. Should Mortgagor, after an Event of Default, continue
in possession of the Mortgaged Property, either lawfully or unlawfully,
Mortgagor shall be a tenant from day to day, terminable at the will of either
Mortgagor or Mortgagee, at a reasonable rental per diem, based upon the value of
the Mortgaged Property occupied computed by Mortgagee in its sole unfettered
discretion, such rental to be due and payable daily to Mortgagee.

         21. INSPECTION. Any person authorized by Mortgagee shall have the right
to enter upon and inspect the Mortgaged Property at all reasonable times.
Mortgagee shall, however, have no duty to make such inspections. Any inspection
of the Mortgaged Property by Mortgagee shall be entirely for its benefit, and
Mortgagor shall in no way rely or claim reliance thereon.

         22. PARCELS; WAIVER OF MARSHALLING. In the event of foreclosure of the
lien of this Mortgage, the Mortgaged Property may be sold in one or more parcels
or as an entirety as Mortgagee may elect.

                                       19
<PAGE>

         Notwithstanding the existence of any other security interests in the
Mortgaged Property held by Mortgagee or by any other party, Mortgagee shall have
the right to determine the order in which any or all of the Mortgaged Property
shall be subjected to the remedies provided herein. Mortgagee shall have the
right to determine the order in which any or all portions of the Indebtedness
are satisfied from the proceeds realized upon the exercise of the remedies
provided herein. Mortgagor, any party who becomes liable for Mortgagor's
obligations and covenants under this Mortgage, and any party who now or
hereafter acquires a security interest in the Mortgaged Property, or any portion
thereof, hereby waives any and all right to require the marshalling of assets in
connection with the exercise of any of the remedies permitted by applicable law
or provided herein.

         23. COSTS OF COLLECTION. Mortgagor hereby agrees to pay to Mortgagee
all costs of foreclosing this Mortgage, and all costs of collecting and
securing, and of attempting to collect and to secure, the Note, including,
without limitation, reasonable attorneys' fees, appraisers' fees, court costs,
notice charges and title insurance charges, whether such attempt be made by
suit, in bankruptcy, or otherwise; and said costs and any other sums due
Mortgagee by virtue of this Mortgage or the Note may be included in any judgment
or decree rendered.

         24. FINANCIAL STATEMENTS; RENT ROLL. Mortgagor shall maintain full and
correct books and records open to Mortgagee's inspection showing in detail the
income, expenses and earnings of Mortgagor and of the Mortgaged Property, and
shall provide Mortgagee the following financial information. Similar statements
may be required by Mortgagee of Guarantor.

         (a) Within ninety (90) days from the end of each fiscal year of
Mortgagor, or as requested from time to time by Mortgagee, an annual financial
statement consisting of a balance sheet, together with a complete itemized
statement of annual income and operating expenses of Mortgagor and of the
Mortgaged Property, certified by the chief financial officer of Mortgagor and on
forms prescribed by, or satisfactory to, Mortgagee. Mortgagee reserves the right
to require the annual financial statements to be both duly audited and certified
by an independent certified public accountant satisfactory to Mortgagee; and

         (b) Within thirty (30) days after the end of each calendar quarter,
Mortgagor shall provide to Mortgagee a certificate certified by the chief
financial officer of Mortgagor calculating for that preceding quarter Actual
DSCR, as defined in the Loan Documents, and DSCR, as defined in the Note;

         (c) Within forty-five (45) days from the end of each quarter, monthly
operating statements for the Mortgaged Property, certified by the chief
financial officer of Mortgagor and on forms prescribed by, or satisfactory to,
Mortgagee, together with a rent roll of the Mortgaged Property, certified by the
chief financial officer of Mortgagor. The rent roll shall contain the name of
each tenant, square footage of leased premises, annual rent, lease commencement
date and lease expiration date.

                                       20
<PAGE>

         Mortgagor consents to Mortgagee's disclosure of financial statements,
information or other material submitted to Mortgagee to other financial
institutions in connection with the sale of participating interests in the loan
secured hereby and to bank regulators and auditors in connection with review of
the loan secured hereby. Except as set forth hereinabove or pursuant to court
order or federal regulation and except to the extent necessary to enforce the
Loan Documents, Mortgagee agrees to maintain the confidentiality of such
financial statements. To the extent Mortgagee shares such financial information
with other financial institutions in connection with the sale of participating
interests in the loan secured hereby, Mortgagee shall require such other
financial institutions to enter into a confidentiality agreement similar to the
one stated herein.

         25. NOTICE. Except as otherwise expressly provided in any of the Loan
Documents, any notice required or permitted to be given hereunder shall be in
writing and shall be considered properly given if mailed by first class United
States mail, postage prepaid, registered or certified with return receipt
requested, or by delivering such in person to the intended addressee or by
prepaid telegram. Notice so mailed shall be effective upon its deposit. Notice
given in any other manner shall be effective only if and when received by
addressee. For purposes of notice, the addresses of Mortgagor and Mortgagee
shall be as set forth below; provided however that either party shall have the
right to change such party's address for notice hereunder to any other location
within the continental United States by the giving of thirty (30) days' notice
to the other party in the manner set forth hereinabove:

If to Mortgagor:                    Southside Mall, LLC
                                    c/o Glimcher Properties Limited Partnership
                                    20 South Third Street
                                    Columbus, OH 43215
                                    Attn:  General Counsel

If to Mortgagee:                    Bank One, NA
                                    100 East Broad Street
                                    Columbus, Ohio  43271-0208
                                    Attn:  David A. DeVictor,
                                    Vice President

         26. Intentionally Omitted.

         27. CHANGES IN RATE OF INTEREST. The Note contains provisions allowing
for changes in the interest rate and the monthly payment. This Mortgage shall
continue to secure the Indebtedness, with the same priority of lien,
notwithstanding any change in the rate of interest on the Note. None of the
Indebtedness can be modified, altered, amended or waived orally.

         28. NOTICE TO JUNIOR LIEN CLAIMANTS. ALL ACTUAL AND POTENTIAL JUNIOR
LIEN CLAIMANTS ARE HEREBY PLACED ON NOTICE THAT THE INDEBTEDNESS SECURED BY THIS
MORTGAGE IS SUBJECT TO CHANGE(S) AS SET

                                       21
<PAGE>

FORTH IN SECTION 27. BY TAKING OR ACCEPTING ITS INTEREST IN THE MORTGAGED
PROPERTY SUBJECT TO THIS MORTGAGE, EVERY JUNIOR LIEN CLAIMANT UNDERSTANDS,
ACKNOWLEDGES AND AGREES THAT THE PRIORITY AND VALIDITY OF THE LIEN OF THIS
MORTGAGE SHALL NOT BE IMPAIRED OR LIMITED IN ANY WAY BY ANY CHANGE.
NOTWITHSTANDING THE MAGNITUDE OR NATURE OF ANY OF THE FOREGOING, THE SAME SHALL
UNDER NO CIRCUMSTANCES BY DEEMED TO CONSTITUTE A "NOVATION" WITH RESPECT TO ANY
OBLIGATION SECURED BY THIS MORTGAGE, OR OTHERWISE IMPAIR OR REDUCE THE PRIORITY
OF THE LIEN OF THIS MORTGAGE.

         29. MISCELLANEOUS. The covenants herein contained shall bind, and the
benefits and advantages shall inure to, the respective successors and assigns of
the parties hereto. Whenever used, the singular number shall include the plural,
the plural the singular, and the use of any gender shall include all genders. If
any provision of this Mortgage is illegal, or hereafter rendered illegal, or is
for any other reason void, voidable or otherwise unenforceable, or hereafter
rendered void, voidable or otherwise unenforceable, the remainder of this
Mortgage shall not be affected thereby but shall be construed as if it does not
contain such provision. Each right and remedy provided in this Mortgage is
distinct and cumulative to all other rights or remedies under this Mortgage or
afforded by law or equity, and may be exercised concurrently, independently or
successively, in any order whatsoever. This Mortgage shall be governed by and
construed in accordance with, the internal laws of the State of Ohio applicable
to contracts made and performed in such state and any applicable laws of the
United States of America, except that with respect to the validity, priority and
enforceability of the lien of this Mortgage and the provisions hereof which
relate to realizing upon the Mortgaged Property, the applicable provisions of
this Mortgage shall be governed by, and interpreted in accordance with, the laws
of the State of New York (except for the right of recourse against Borrower to
the extent provided herein which shall be governed by Ohio law), it being
understood that, to the fullest extent permitted by the law of such state, the
law of the State of Ohio shall govern the validity and enforceability of the
obligations arising under this Mortgage, the Note, the Loan Documents, and the
Indebtedness.

         PROVIDED, HOWEVER, that these presents are upon the condition that if
Mortgagor shall well and truly pay to Mortgagee, its successors and assigns, the
indebtedness secured hereby (including, without limitation, all advances
heretofore and hereafter made pursuant to the Note, this Mortgage or the Loan
Documents), and shall fully keep and perform all of the conditions and
agreements to be by Mortgagor kept, done and performed, then this Mortgage shall
be void; otherwise it shall remain in full force and effect in law and equity
forever.

                                       22
<PAGE>

         IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be executed
by its duly authorized member as of the _____day of April, 2002.

                                   MORTGAGOR:

                                   SOUTHSIDE MALL, LLC,
                                   a Delaware limited liability company

                                   By:  Glimcher Properties Limited Partnership,
                                        its Managing Member

                                        By:   Glimcher Properties Corporation,
                                              its General Partner

                                              By: /s/ George A. Schmidt
                                                  ------------------------------
                                                    George A. Schmidt, Executive
                                                    Vice President

STATE OF OHIO,
COUNTY OF FRANKLIN, SS:

         On the ___ day of April in the year 2002 before me, the undersigned,
personally appeared George A. Schmidt, the Executive Vice President of Glimcher
Properties Corporation, the General Partner of Glimcher Properties Limited
Partnership, the Managing Member of Southside Mall, LLC, a Delaware limited
liability company, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual or the
person on behalf of which the individual acted, executed the instrument, and
that such individual made such appearance before the undersigned in the City of
Columbus, State of Ohio.

                                   /s/ Beth N. Church
                                   ---------------------------------------
                                   Notary Public

                                   Commission Expires:  1/30/07
                                                      --------------------

This instrument prepared by: Charles H. McCreary III, Bricker & Eckler LLP, 100
South Third Street, Columbus, Ohio 43215-4291.

                                       23
<PAGE>

                                   EXHIBIT "A"

Tax Parcel ID # _______________________

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