Document:

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                                 EXHIBIT 10.2

                           Form of Advisory Agreement

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                               ADVISORY AGREEMENT

         THIS ADVISORY AGREEMENT, dated as of ________________, 2004, is between
CNL INCOME PROPERTIES, INC., a corporation organized under the laws of the State
of Maryland (the "Company") and CNL INCOME CORP., a corporation organized under
the laws of the State of Florida (the "Advisor").

                               W I T N E S S E T H

         WHEREAS, the Company has filed with the Securities and Exchange
Commission a Registration Statement (No. 333-108355) on Form S-11 covering
200,000,000 of its common shares, par value $.01 per share ("Shares"), to be
offered to the public, and the Company may subsequently issue securities other
than such Shares ("Securities") or otherwise raise additional capital;

         WHEREAS, the Company intends to qualify as a REIT (as defined below),
and to invest its funds in investments permitted by the terms of the
Registration Statement and Sections 856 through 860 of the Code (as defined
below);

         WHEREAS, the Company desires to avail itself of the experience, sources
of information, advice, assistance and certain facilities available to the
Advisor and to have the Advisor undertake the duties and responsibilities
hereinafter set forth, on behalf of, and subject to the supervision, of the
Board of Directors of the Company all as provided herein; and

         WHEREAS, the Advisor is willing to undertake to render such services,
subject to the supervision of the Board of Directors, on the terms and
conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

         (1) DEFINITIONS. As used in this Advisory Agreement (the "Agreement"),
the following terms have the definitions hereinafter indicated:

         Acquisition Expenses. Any and all expenses incurred by the Company, the
Advisor, or any Affiliate of either in connection with the selection,
acquisition or making of any investment, including any Property, Loan or other
Permitted Investment, whether or not acquired, including, without limitation,
legal fees and expenses, travel and communication expenses, costs of appraisals,
nonrefundable option payments on property not acquired or made, accounting fees
and expenses, and title insurance.

         Acquisition Fees. Any and all fees and commissions, exclusive of
Acquisition Expenses, paid by any Person or entity to any other Person or entity
(including any fees or commissions paid by or to any Affiliate of the Company or
the Advisor) in connection with making an investment including making or
investing in Loans or other Permitted Investments or the purchase,

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development or construction of a Property, including, without limitation, real
estate commissions, acquisition fees, finder's fees, selection fees, development
fees, construction fees, nonrecurring management fees, consulting fees, loan
fees, points, or any other fees or commissions of a similar nature. Excluded
shall be development fees and construction fees paid to any Person or entity not
Affiliated with the Advisor in connection with the actual development and
construction of any Property. Further, Acquisition Fees will not be paid in
connection with temporary short-term investments acquired for purposes of cash
management.

         Advisor. CNL Income Corp., a Florida corporation, any successor Advisor
to the Company, or any Person or entity to which CNL Income Corp. or any
successor advisor subcontracts substantially all of its functions. The Advisor
will have responsibility for the day-to-day operations of the Company.

         Affiliate or Affiliated (or any derivation thereof). An affiliate of
another Person, which is defined as: (i) any Person directly or indirectly
owning, controlling, or holding, with power to vote 10% or more of the
outstanding voting securities of such other Person; (ii) any Person 10% or more
of whose outstanding voting securities are directly or indirectly owned,
controlled or held, with power to vote, by such other Person; (iii) any Person
directly or indirectly controlling, controlled by, or under common control with
such other Person; (iv) any executive officer, director, trustee or general
partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee or general partner.

         Appraised Value. Value according to an appraisal made by an Independent
Appraiser.

         Articles of Incorporation. The Articles of Incorporation of the
Company, as amended from time to time.

         Asset Management Fee. The fee payable to the Advisor for day-to-day
professional management services in connection with the Company and its
investments in Properties Loans and other Permitted Investments pursuant to this
Agreement.

         Assets. Properties, Loans and other Permitted Investments,
collectively.

         Average Invested Assets. For a specified period, the average of the
aggregate book value of the assets of the Company invested, directly or
indirectly, in equity interests in, and Loans secured by, real estate, or in
other Permitted Investments, before reserves for depreciation or bad debts or
other similar non-cash reserves, computed by taking the average of such values
at the end of each month during such period.

         Board of Directors or Board. The Directors of the Company.

         Bylaws. The bylaws of the Company, as the same are in effect and may be
amended from time to time.

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         Cause. With respect to the termination of this Agreement, fraud,
criminal conduct, willful misconduct or willful or negligent breach of fiduciary
duty by the Advisor, breach of this Agreement, a default by the Sponsor under
the guarantee by the Sponsor to the Company or the bankruptcy of the Sponsor.

         Change of Control. A change of control of the Company of such a nature
that would be required to be reported in response to the disclosure requirements
of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act
of 1934, as amended, as enacted and in force on the date hereof (the "Exchange
Act"), whether or not the Company is then subject to such reporting
requirements; provided, however, that, without limitation, a change of control
shall be deemed to have occurred if: (i) any "person" (within the meaning of
Section 13(d) of the Exchange Act) is or becomes the "beneficial owner" (as that
term is defined in Rule 13d-3, as enacted and in force on the date hereof, under
the Exchange Act) of securities of the Company representing 8.5% or more of the
combined voting power of the Company's securities then outstanding; (ii) there
occurs a merger, consolidation or other reorganization of the Company which is
not approved by the Board of Directors of the Company; (iii) there occurs a
sale, exchange, transfer or other disposition of substantially all of the assets
of the Company to another entity, which disposition is not approved by the Board
of Directors of the Company; or (iv) there occurs a contested proxy solicitation
of the Stockholders of the Company that results in the contesting party electing
candidates to a majority of the Board of Directors' positions next up for
election.

         Code. Internal Revenue Code of 1986, as amended from time to time, or
any successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as
in effect from time to time.

         Company. CNL Income Properties, Inc., a corporation organized under the
laws of the State of Maryland.

         Company Property. Any and all property, real, personal or otherwise,
tangible or intangible, including Loans and other Permitted Investments, which
is transferred or conveyed to the Company (including all rents, income, profits
and gains therefrom), and which is owned or held by, or for the account of, the
Company.

         Competitive Real Estate Commission. A real estate or brokerage
commission for the purchase or sale of property, which is reasonable, customary,
and competitive in light of the size, type, and location of the property. The
total of all real estate commissions paid by the Company to all Persons
(including the Subordinated Disposition Fee payable to the Advisor) in
connection with any Sale of one or more of the Company's Properties shall not
exceed the lesser of (i) a Competitive Real Estate Commission or (ii) six
percent of the gross sales price of the Property or Properties.

         Contract Purchase Price. The amount actually paid or allocated (as of
the date of purchase) to the purchase, development, construction or improvement
of property, exclusive of Acquisition Fees and Acquisition Expenses.

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         Contract Sales Price. The total consideration received by the Company
for the sale of Company Property.

         Director. A member of the Board of Directors of the Company.

         Distributions. Any distribution of money or other property by the
Company to owners of Equity Shares, including distributions that may constitute
a return of capital for federal income tax purposes.

         Equity Interest. The stock of or other interests in, or warrants or
other rights to purchase the stock of or other interests in, any entity that has
borrowed money from the Company or that is a tenant of the Company or that is a
parent or controlling Person of any such borrower or tenant.

         Equity Shares. This term shall have the same meaning as the definition
of "Equity Shares" in the Company's Articles of Incorporation.

         Gross Proceeds. The aggregate purchase price of all Shares sold for the
account of the Company through the Offering, without deduction for selling
commissions, volume discounts, the marketing support fee, due diligence expense
reimbursements or Organizational and Offering Expenses. For the purpose of
computing Gross Proceeds, the purchase price of any Share for which reduced or
no selling commissions or marketing support fees are paid to the Managing Dealer
or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall
be deemed to be the full offering price of the Shares, with the exception of
Shares purchased pursuant to the Company's reinvestment plan, which will be
factored into the calculation using their actual purchase price.

         Independent Appraiser. A qualified appraiser of real estate as
determined by the Board. Membership in a nationally recognized appraisal society
such as the Appraisal Institute ("M.A.I.") or the Society of Real Estate
Appraisers ("S.R.E.A.") shall be conclusive evidence of such qualification.

         Independent Director. A Director who is not and within the last two
years has not been directly or indirectly associated with the Advisor by virtue
of (i) ownership of an interest in the Advisor or its Affiliates, (ii)
employment by the Advisor or its Affiliates, (iii) service as an officer or
director of the Advisor or its Affiliates, (iv) performance of services, other
than as a Director, for the Company, (v) service as a director or trustee of
more than three real estate investment trusts advised by the Advisor, or (vi)
maintenance of a material business or professional relationship with the Advisor
or any of its Affiliates. A business or professional relationship is considered
material if the gross revenue derived by the Director from the Advisor and
Affiliates exceeds 5% of either the Director's annual gross revenue during
either of the last two years or the Director's net worth on a fair market value
basis. An indirect relationship shall include circumstances in which a
Director's spouse, parents, children, siblings, mothers- or fathers-in-law,
sons- or daughters-in-law, or

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brothers- or sisters-in-law are or have been associated with the Advisor, any of
its Affiliates, or the Company.

         Independent Expert. A Person or entity with no material current or
prior business or personal relationship with the Advisor or the Directors and
who is engaged to a substantial extent in the business of rendering opinions
regarding the value of assets of the type held by the Company.

         Invested Capital. The amount calculated by multiplying the total number
of Shares issued and outstanding by the offering price per share, without
deduction for selling commissions, volume discounts, the marketing support fee,
due diligence expense reimbursements or Organizational and Offering Expenses
(which price per Share, in the case of Shares purchased pursuant to the
Company's reinvestment plan, shall be deemed to be the actual purchase price),
reduced by the portion of any Distribution that is attributable to Net Sales
Proceeds.

         Joint Ventures. The joint venture or general partnership arrangements
in which the Company is a co-venturer or general partner which are established
to acquire Properties, and/or make Loans or other Permitted Investments.

         Line of Credit. A line of credit initially in an aggregate amount up to
$100 million (or such greater amount as shall be approved by the Board of
Directors), the proceeds of which will be used to acquire Properties and make
Loans and other Permitted Investments and for any other authorized purpose. The
Line of Credit may be in addition to any Permanent Financing.

         Listing. The listing of the Shares of the Company on a national
securities exchange or their inclusion for quotation on the National Market
system of the Nasdaq Stock Market.

         Loans. Mortgage Loans and other types of debt financing provided by the
Company.

         Managing Dealer. CNL Securities Corp., an Affiliate of the Advisor, or
such other Person or entity selected by the Board of Directors to act as the
managing dealer for the Offering. CNL Securities Corp. is a member of the
National Association of Securities Dealers, Inc.

         Net Income. For any period, the total revenues applicable to such
period, less the total expenses applicable to such period excluding additions to
reserves for depreciation, bad debts or other similar non-cash reserves;
provided, however, Net Income for purposes of calculating total allowable
Operating Expenses (as defined herein) shall exclude the gain from the sale of
the Company's assets.

         Net Sales Proceeds. In the case of a transaction described in clause
(i)(A) of the definition of Sale, the proceeds of any such transaction less the
amount of all real estate commissions and closing costs paid by the Company. In
the case of a transaction described in clause (i)(B) of such definition, Net
Sales Proceeds means the proceeds of any such transaction less the amount of any
legal and other selling expenses incurred in connection with such transaction.
In the case of a transaction described in clause (i)(C) of such definition, Net
Sales Proceeds means the proceeds of any such transaction actually distributed
to the Company from the Joint Venture. In the case of a

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transaction or series of transactions described in clause (i)(D) of the
definition of Sale, Net Sales Proceeds means the proceeds of any such
transaction less the amount of all commissions and closing costs paid by the
Company. In the case of a transaction described in clause (ii) of the definition
of Sale, Net Sales Proceeds means the proceeds of such transaction or series of
transactions less all amounts generated thereby and reinvested in one or more
Properties within 180 days thereafter and less the amount of any real estate
commissions, closing costs, and legal and other selling expenses incurred by or
allocated to the Company in connection with such transaction or series of
transactions. Net Sales Proceeds shall also include, in the case of any lease of
a Property consisting of a building only or any Loan or other Permitted
Investments, any amounts from tenants, borrowers or lessees that the Company
determines, in its discretion, to be economically equivalent to proceeds of a
Sale. Net Sales Proceeds shall not include, as determined by the Company in its
sole discretion, any amounts reinvested in one or more Properties, Loans, or
other Permitted Investments, to repay outstanding indebtedness, or to establish
reserves.

         Offering. The initial public offering of Shares.

         Operating Expenses. All costs and expenses incurred by the Company, as
determined under generally accepted accounting principles, which in any way are
related to the operation of the Company or to Company business, including (a)
advisory fees, (b) the Asset Management Fee, (c) the Performance Fee and (d) the
Subordinated Incentive Fee, but excluding (i) the expenses of raising capital
such as Organizational and Offering Expenses, legal, audit, accounting,
underwriting, brokerage, listing, registration, and other fees, printing and
other such expenses and tax incurred in connection with the issuance,
distribution, transfer, registration and Listing of the Shares; (ii) interest
payments; (iii) taxes; (iv) non-cash expenditures such as depreciation,
amortization and bad loan reserves; (v) the Advisor's subordinated 10% share of
Net Sales Proceeds; and (vi) Acquisition Fees and Acquisition Expenses, real
estate or other commissions on the Sale of Assets, and other expenses connected
with the acquisition, and ownership of real estate interests, Loans or other
Permitted Investments (such as the costs of foreclosure, insurance premiums,
legal services, maintenance, repair and improvement of property).

         Organizational and Offering Expenses. Any and all costs and expenses,
other than selling commissions, the marketing support fee and due diligence
expense reimbursements incurred by the Company, the Advisor or any Affiliate of
either in connection with the formation, qualification and registration of the
Company and the marketing and distribution of Shares, including, without
limitation, the following: legal, accounting and escrow fees; printing,
amending, supplementing, mailing and distributing costs; filing, registration
and qualification fees and taxes; telegraph and telephone costs; and all
advertising and marketing expenses, including the costs related to investor and
broker-dealer sales meetings.

         Performance Fee. The fee payable to the Advisor under certain
circumstances if certain performance standards have been met and the
Subordinated Incentive Fee has not been paid.

         Permanent Financing. The financing to (i) acquire Properties and to
make Loans or other Permitted Investments; (ii) pay of any Acquisition Fees
arising from any Permanent Financing; and

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(iii) refinance outstanding amounts on the Line of Credit. Permanent financing
may be in addition to any borrowing under the Line of Credit.

         Permitted Investments. All investments that the Company may acquire
pursuant to its Articles of Incorporation and bylaws, other than the short-term
investments acquired for purposes of cash management.

         Person. An individual, corporation, partnership, estate, trust
(including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a
portion of a trust permanently set aside for or to be used exclusively for the
purposes described in Section 642(c) of the Code, association, private
foundation within the meaning of Section 509(a) of the Code, joint stock company
or other entity, or any government or any agency or political subdivision
thereof, and also includes a group as that term is used for purposes of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended, but does not
include (i) an underwriter that participates in a public offering of Equity
Shares for a period of sixty days following the initial purchase by such
underwriter of such Equity Shares in such public offering, or (ii) CNL Income
Corp., during the period ending December 31, 2004, provided that the foregoing
exclusions shall apply only if the ownership of such Equity Shares by an
underwriter or CNL Income Corp. would not cause the Company to fail to qualify
as a REIT by reason of being "closely held" within the meaning of Section 856(a)
of the Code or otherwise cause the Company to fail to qualify as a REIT.

         Property or Properties. Interests in (i) the real properties, including
the buildings an equipment located thereon; or (ii) the real properties only; or
(iii) the buildings only, including equipment located therein; any of which are
acquired by the Company, either directly or indirectly through joint ventures,
or other partnerships, or other legal entities.

         Prospectus. "Prospectus" means the same as that term as defined in
Section 2(10) of the Securities Act of 1933, including a preliminary prospectus,
an offering circular as described in Rule 253 of the General Rules and
Regulations under the Securities Act of 1933, as amended, or, in the case of an
intrastate offering, any document by whatever name known, utilized for the
purpose of offering and selling securities to the public.

         Real Estate Asset Value. The amount actually paid or allocated to the
purchase, development, construction or improvement of a Property, exclusive of
Acquisition Fees and Acquisition Expenses.

         Registration Statement. The Registration Statement (No. 333-108355) on
Form S-11 registering the Shares to be sold in the Offering.

         REIT. A "real estate investment trust" as defined pursuant to Sections
856 through 860 of the Code.

         Sale or Sales. (i) Any transaction or series of transactions whereby:
(A) the Company sells, grants, transfers, conveys or relinquishes its ownership
of any Property or portion thereof, including

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the lease of any Property, Loan or other Permitted Investment consisting of the
building only, and including any event with respect to any Property which gives
rise to a significant amount of insurance proceeds or condemnation awards; (B)
the Company sells, grants, transfers, conveys or relinquishes its ownership of
all or substantially all of the interest of the Company in any Joint Venture in
which it is a co-venturer or partner; (C) any Joint Venture in which the Company
as a co-venturer or partner sells, grants, transfers, conveys or relinquishes
its ownership of any Property, Loan or other Permitted Investment or portion
thereof, including any event with respect to any Property, Loan or other
Permitted Investment which gives rise to insurance claims or condemnation
awards; or (D) the Company sells, grants, conveys or relinquishes its interest
in any Loan or other Permitted Investment, or portion thereof, including any
event with respect to any Loan or other Permitted Investment, which gives rise
to a significant amount of insurance proceeds or similar awards, but (ii) shall
not include any transaction or series of transactions specified in clause
(i)(A), (i)(B), or (i)(C) above in which the proceeds of such transaction or
series of transactions are reinvested in one or more Properties, Loans or other
Permitted Investments within 180 days thereafter.

         Securities. Any Equity Shares, Excess Shares, as such terms are defined
in the Company's Articles of Incorporation, any other stock, shares or other
evidences of equity or beneficial or other interests, voting trust certificates,
bonds, debentures, notes or other evidences of indebtedness, secured or
unsecured, convertible, subordinated or otherwise, or in general any instruments
commonly known as "securities" or any certificates of interest, shares or
participations in, temporary or interim certificates for, receipts for,
guarantees of, or warrants, options or rights to subscribe to, purchase or
acquire, any of the foregoing.

         Shares. The up to 200,000,000 shares of common stock, per value $.01
per share, of the Company.

         Soliciting Dealers. Broker-dealers that are members of the National
Association of Securities Dealers, Inc., or that are exempt from broker-dealer
registration, and that, in either case, enter into participating broker or other
agreements with the Managing Dealer to sell Shares.

         Sponsor. Any Person directly or indirectly instrumental in organizing,
wholly or in part, the Company or any Person who will control, manage or
participate in the management of the Company, and any Affiliate of such Person.
Not included is any Person whose only relationship with the Company is that of
an independent property manager of the Company's Properties, Loans or other
Permitted Investments, and whose only compensation is as such. Sponsor does not
include independent third parties such as attorneys, accountants, and
underwriters whose only compensation is for professional services. A Person may
also be deemed a Sponsor of the Company by:

         a.       taking the initiative, directly or indirectly, in founding or
                  organizing the business or enterprise of the Company, either
                  alone or in conjunction with one or more other Persons;

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         b.       receiving a material participation in the Company in
                  connection with the founding or organizing of the business of
                  the Company, in consideration of services or property, or both
                  services and property;

         c.       having a substantial number of relationships and contacts with
                  the Company;

         d.       possessing significant rights to control the Company's
                  Properties;

         e.       receiving fees for providing services to the Company which are
                  paid on a basis that is not customary in the industry; or

         f.       providing goods or services to the Company on a basis which
                  was not negotiated at arms length with the Company.

         Stockholders. The registered holders of the Company's Equity Shares.

         Stockholders' 8% Return. As of each date, an aggregate amount equal to
an 8% cumulative, noncompounded, annual return on Invested Capital.

         Subordinated Disposition Fee. The Subordinated Disposition Fee as
defined in Paragraph 9(c).

         Subordinated Incentive Fee. The fee payable to the Advisor under
certain circumstances if the Shares are listed on a national securities
exchange.

         Termination Date.  The date of termination of this Agreement.

         Total Proceeds. The Gross Proceeds plus Loan proceeds from Permanent
Financings and the Line of Credit that are used to make or acquire Properties,
Loans and other Permitted Investments.

         Total Property Cost. With regard to any Company Property, an amount
equal to the sum of the Real Estate Asset Value of such Property plus the
Acquisition Fees paid in connection with such Property.

         2%/25% Guidelines. The requirement pursuant to the guidelines of the
North American Securities Administrators Association, Inc. that, in any 12 month
period, total Operating Expenses may not exceed the greater of 2% of the
Company's Average Invested Assets during such 12 month period or 25% of the
Company's Net Income over the same 12 month period.

         Valuation. An estimate of value of the Assets of the Company as
determined by an Independent Expert.

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         (2) APPOINTMENT. The Company hereby appoints the Advisor to serve as
its advisor on the terms and conditions set forth in this Agreement, and the
Advisor hereby accepts such appointment.

         (3) DUTIES OF THE ADVISOR. The Advisor undertakes to use its best
efforts to present to the Company potential investment opportunities and to
provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from
time to time by the Directors. In performance of this undertaking, subject to
the supervision of the Directors and consistent with the provisions of the
Registration Statement, Articles of Incorporation and Bylaws of the Company, the
Advisor shall, either directly or by engaging an Affiliate:

                  (a)      serve as the Company's investment and financial
                           advisor and provide research and economic and
                           statistical data in connection with the Company's
                           assets and investment policies;

                  (b)      provide the daily management of the Company and
                           perform and supervise the various administrative
                           functions reasonably necessary for the management of
                           the Company;

                  (c)      investigate, select, and, on behalf of the Company,
                           engage and conduct business with such Persons as the
                           Advisor deems necessary to the proper performance of
                           its obligations hereunder, including but not limited
                           to consultants, accountants, correspondents, lenders,
                           technical advisors, attorneys, brokers, underwriters,
                           corporate fiduciaries, escrow agents, depositaries,
                           custodians, agents for collection, insurers,
                           insurance agents, banks, builders, developers,
                           property owners, mortgagors, and any and all agents
                           for any of the foregoing, including Affiliates of the
                           Advisor, and Persons acting in any other capacity
                           deemed by the Advisor necessary or desirable for the
                           performance of any of the services herein, including
                           but not limited to entering into contracts in the
                           name of the Company with any of the foregoing;

                  (d)      consult with the officers and Directors of the
                           Company and assist the Directors in the formulation
                           and implementation of the Company's financial
                           policies, and, as necessary, furnish the Directors
                           with advice and recommendations with respect to the
                           making of investments consistent with the investment
                           objectives and policies of the Company and in
                           connection with any borrowings proposed to be
                           undertaken by the Company;

                  (e)      subject to the provisions of Paragraphs 3(g) and 4
                           hereof, (i) locate, analyze and select potential
                           investments in Properties and Loans and other
                           Permitted Investments, (ii) structure and negotiate
                           the terms and conditions of transactions pursuant to
                           which investment in Properties and Loans and other

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                           Permitted Investments; (iii) make investments in
                           Properties and Loans and other Permitted Investments
                           in compliance with the investment objectives and
                           policies of the Company; (iv) arrange for financing
                           and refinancing and make other changes in the asset
                           or capital structure of, and dispose of, reinvest the
                           proceeds from the sale of, or otherwise deal with the
                           investments in, Properties, Loans and other Permitted
                           Investments; and (v) enter into leases and service
                           contracts for Company Property and, to the extent
                           necessary, perform all other operational functions
                           for the maintenance and administration of such
                           Company Property;

                  (f)      provide the Directors with periodic reports regarding
                           prospective investments in Properties, Loans and
                           other Permitted Investments;

                  (g)      obtain the prior approval of the Directors (including
                           a majority of all Independent Directors) for any and
                           all investments in Properties, Loans and other
                           Permitted Investments;

                  (h)      negotiate on behalf of the Company with banks or
                           lenders for loans to be made to the Company and
                           negotiate on behalf of the Company with investment
                           banking firms and broker-dealers or negotiate private
                           sales of Shares and Securities or obtain loans for
                           the Company, but in no event in such a way so that
                           the Advisor shall be acting as broker-dealer or
                           underwriter; and provided, further, that any fees and
                           costs payable to third parties incurred by the
                           Advisor in connection with the foregoing shall be the
                           responsibility of the Company;

                  (i)      obtain reports (which may be prepared by the Advisor
                           or its Affiliates), where appropriate, concerning the
                           value of investments or contemplated investments of
                           the Company;

                  (j)      from time to time, or at any time reasonably
                           requested by the Directors, make reports to the
                           Directors of its performance of services to the
                           Company under this Agreement;

                  (k)      provide the Company with all necessary cash
                           management services;

                  (l)      do all things necessary to assure its ability to
                           render the services described in this Agreement;

                  (m)      deliver to or maintain on behalf of the Company
                           copies of all appraisals obtained in connection with
                           the investments in Properties, Loans and other
                           Permitted Investments; and

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                  (n)      notify the Board of all proposed material
                           transactions before they are completed.

         (4) AUTHORITY OF ADVISOR.

                  (a) Pursuant to the terms of this Agreement (including the
restrictions included in this Paragraph 4 and in Paragraph 7), and subject to
the continuing and exclusive authority of the Directors over the management of
the Company, the Directors hereby delegate to the Advisor the authority to (1)
locate, analyze and select investment opportunities, (2) structure the terms and
conditions of transactions pursuant to which investments will be made or
acquired for the Company, (3) acquire Properties, make Loans and other Permitted
Investments in compliance with the investment objectives and policies of the
Company, (4) arrange for financing or refinancing with respect to Properties,
Loans and other Permitted Investments, (5) enter into leases and service
contracts for the Company's Property, and perform other property management
services, (6) oversee non-affiliated property managers and other non-affiliated
Persons who perform services for the Company; and (7) undertake accounting and
other record-keeping functions at the Property level.

                  (b) Notwithstanding the foregoing, any investment in
Properties or Loans or other Permitted Investments, including any acquisition of
Property by the Company (as well as any financing acquired by the Company in
connection with such acquisition), will require the prior approval of the
Directors (including a majority of the Independent Directors).

                  (c) If a transaction requires approval by the Independent
Directors, the Advisor will deliver to the Independent Directors all documents
required by them to properly evaluate the proposed investment in the Property,
Loan or other Permitted Investments.

         The prior approval of a majority of the Independent Directors and a
majority of the Directors not otherwise interested in the transaction will be
required for each transaction with the Advisor or its Affiliates.

         The Directors may, at any time upon the giving of notice to the
Advisor, modify or revoke the authority set forth in this Paragraph 4. If and to
the extent the Directors so modify or revoke the authority contained herein, the
Advisor shall henceforth submit to the Directors for prior approval such
proposed transactions involving investments thereafter require prior approval,
provided, however, that such modification or revocation shall be effective upon
receipt by the Advisor and shall not be applicable to investment transactions to
which the Advisor has committed the Company prior to the date of receipt by the
Advisor of such notification.

         (5) BANK ACCOUNTS. The Advisor may establish and maintain one or more
bank accounts in its own name for the account of the Company or in the name of
the Company and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company,
under such terms and conditions as the Directors may approve, provided that no
funds shall be commingled with the funds of the Advisor; and the

                                      -12-
<PAGE>

Advisor shall from time to time render appropriate accountings of such
collections and payments to the Directors and to the auditors of the Company.

         (6) RECORDS; ACCESS. The Advisor shall maintain appropriate records of
all its activities hereunder and make such records available for inspection by
the Directors and by counsel, auditors and authorized agents of the Company, at
any time or from time to time during normal business hours. The Advisor shall at
all reasonable times have access to the books and records of the Company.

         (7) LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect the
status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, or (c) violate any law, rule, regulation or
statement of policy of any governmental body or agency having jurisdiction over
the Company, its Equity Shares or its Securities, or otherwise not be permitted
by the Articles of Incorporation or Bylaws of the Company, except if such action
shall be ordered by the Directors, in which case the Advisor shall notify
promptly the Directors of the Advisor's judgment of the potential impact of such
action and shall refrain from taking such action until it receives further
clarification or instructions from the Directors. In such event the Advisor
shall have no liability for acting in accordance with the specific instructions
of the Directors so given. Notwithstanding the foregoing, the Advisor, its
directors, officers, employees and stockholders, and stockholders, directors and
officers of the Advisor's Affiliates shall not be liable to the Company or to
the Directors or Stockholders for any act or omission by the Advisor, its
directors, officers or employees, or stockholders, directors or officers of the
Advisor's Affiliates except as provided in Paragraphs 19 and 20 of this
Agreement.

         (8) RELATIONSHIP WITH DIRECTORS. Directors, officers and employees of
the Advisor or an Affiliate of the Advisor or any corporate parents of an
Affiliate, or directors, officers or stockholders of any director, officer or
corporate parent of an Affiliate may serve as a Director and as officers of the
Company, except that no director, officer or employee of the Advisor or its
Affiliates who also is a Director or officer of the Company shall receive any
compensation from the Company for serving as a Director or officer of the
Company other than reasonable reimbursement for travel and related expenses
incurred in attending meetings of the Directors of the Company.

         (9) FEES.

                  (a) Asset Management Fee. The Company shall pay to the Advisor
as compensation for the advisory services rendered to the Company under
Paragraph 3 above a monthly fee in an amount equal to 0.08334% of the Company's
Real Estate Asset Value and the outstanding principal amount of the Loans and
other Permitted Investments (the "Asset Management Fee"), as of the end of the
preceding month. Specifically, Real Estate Asset Value equals the amount
invested in the Properties wholly owned by the Company, determined on the basis
of cost, plus, in the case of Properties owned by any Joint Venture or
partnership in which the Company is a co-venturer or partner, the portion of the
cost of such Properties paid by the

                                      -13-
<PAGE>

Company, exclusive of Acquisition Fees and Acquisition Expenses. The Asset
Management Fee shall be payable monthly on the last day of such month, or the
first business day following the last day of such month. The Asset Management
Fee, which will not exceed fees which are competitive for similar services in
the same geographic area, may or may not be taken, in whole or in part as to any
year, in the sole discretion of the Advisor. All or any portion of the Asset
Management Fee not taken as to any fiscal year shall be deferred without
interest and may be taken in such other fiscal year as the Advisor shall
determine.

         (b) Acquisition Fees.

                           (i)  The Company shall pay the Advisor a fee in the
amount of 3.0% of Total Proceeds as Acquisition Fees. Acquisition Fees shall be
reduced to the extent that, and, if necessary to limit, the total compensation
paid to all persons involved in the acquisition of any Property to the amount
customarily charged in arm's-length transactions by other persons or entities
rendering similar services as an ongoing public activity in the same
geographical location and for comparable types of Properties and to the extent
that other acquisition fees, finder's fees, real estate commissions, or other
similar fees or commissions are paid by any person in connection with the
transaction. In addition, Acquisition Fees shall be reduced to 1.0% of Gross
Proceeds in connection with sales in excess of 500,000 shares to a "purchaser"
(as such term is defined in the section of the Prospectus titled "The Offering
-- Plan of Distribution"), provided all such shares are purchased through the
same registered investment adviser, Soliciting Dealer, or the Managing Dealer.
The total of all Acquisition Fees and any Acquisition Expenses shall be limited
in accordance with the Articles of Incorporation.

                           (ii)  Advisory Fee.  To the extent the Acquisition
Fee is reduced in the manner described in subparagraph (9)(b)(i) above, for
investments by a stockholder in excess of 500,000 Shares, such stockholder and
any person it transfers shares to will be required to pay an annual 0.40%
Advisory Fee on its Shares to the Advisor or its Affiliates. Payment of this fee
will be withheld from Distributions otherwise payable to such stockholder. Upon
Listing, the Advisory Fee will no longer be payable to the Advisor or its
Affiliates. Other than the Company's obligation to withhold Distributions if and
when such Distributions are declared and made, and its obligation to forward
such withheld amounts to the Advisor, the Company shall have no further
obligations with respect to this fee. Further, nothing contained herein shall be
construed to imply that the Company is liable for any portion of the Advisory
Fee.

                  (c) Subordinated Disposition Fee. If the Advisor or an
Affiliate provides a substantial amount of the services (as determined by a
majority of the Independent Directors) in connection with the Sale of one or
more Assets, the Advisor or an Affiliate shall receive a Subordinated
Disposition Fee equal to the lesser of (i) one-half of a Competitive Real Estate
Commission or (ii) 3% of the sales price of such Property or Properties (or
comparable competitive Fee in the case of a Loan or other Permitted Investment).
The Subordinated Disposition Fee will be paid only if Stockholders have received
total Distributions in an amount equal to or greater than the sum of their
aggregate Invested Capital and their aggregate Stockholders' 8% Return. To the
extent that Subordinated Disposition Fees are not paid by the Company on a
current basis due to the

                                      -14-
<PAGE>

foregoing limitation, the unpaid fees will be accrued and paid at such time as
the subordination conditions have been satisfied. The Subordinated Disposition
Fee may be paid in addition to real estate commissions paid to non-Affiliates,
provided that the total real estate commissions paid to all Persons by the
Company (including the Subordinated Disposition fee) shall not exceed an amount
equal to the lesser of (i) 6% of the Contract Sales Price of a Property or (ii)
the Competitive Real Estate Commission. In the event this Agreement is
terminated prior to such time as the Stockholders have received total
Distributions in an amount equal to 100% of Invested Capital plus an amount
sufficient to pay the Stockholders' 8% Return through the Termination Date, an
appraisal of the Properties then owned by the Company shall be made and the
Subordinated Disposition Fee on Properties previously sold will be deemed earned
if the Appraised Value of the Properties then owned by the Company plus total
Distributions received prior to the Termination Date equals or is greater than
100% of Invested Capital plus an amount sufficient to pay the Stockholders' 8%
Return through the Termination Date. Upon Listing, if the Advisor has accrued
but not been paid such Subordinated Disposition Fee, then for purposes of
determining whether the subordination conditions have been satisfied,
Stockholders will be deemed to have received a Distribution in the amount equal
to the product of the total number of Shares outstanding and the average closing
price of the Shares over a period, beginning 180 days after Listing, of 30 days
during which the Shares are traded.

         (d) Subordinated Share of Net Sales Proceeds. The Subordinated Share of
Net Sales Proceeds shall be payable to the Advisor in an amount equal to 10% of
Net Sales Proceeds from Sales of Assets of the Company payable after the
Stockholders have received Distributions equal to or greater than the sum of the
Stockholders' 8% Return and 100% of Invested Capital. Following Listing, no
Subordinated Share of Net Sales Proceeds will be paid to the Advisor.

         (e) Subordinated Incentive Fee. Upon Listing, the Advisor shall be paid
the Subordinated Incentive Fee in an amount equal to 10% of the amount by which
(ii) the market value of the Company, measured by taking the average closing
price or average of bid and asked price, as the case may be, over a period of 30
days during which the Shares are traded, with such period beginning 180 days
after Listing (the "Market Value"), plus the total Distributions paid to
Stockholders from the Company's inception until the date of Listing, exceeds
(ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions
required to be paid to the Stockholders in order to pay the Stockholders' 8%
Return from inception through the date the Market Value is determined. The
Company shall have the option to pay such fee in the form of cash, Securities, a
promissory note or any combination of the foregoing. The Subordinated Incentive
Fee will be reduced by the amount of any prior payment to the Advisor of a
deferred, subordinated share of Net Sales Proceeds form Sales of Assets of the
Company.

         (f) Loans from Affiliates. If any loans are made to the Company by an
Affiliate of the Advisor, the maximum amount of interest that may be charged by
such Affiliate shall be the lesser of (i) 1% above the prime rate of interest
charged from time to time by The Bank of New York and (ii) the rate that would
be charged to the Company by unrelated lending institutions on comparable loans
for the same purpose. The terms of any such loans shall be no less favorable
than the terms available between non-Affiliated Persons for similar commercial
loans.

                                      -15-
<PAGE>

         (g) Changes to Fee Structure. In the event of Listing, the Company and
the Advisor shall negotiate in good faith to establish a fee structure
appropriate for a perpetual-life entity. A majority of the Independent Directors
must approve the new fee structure negotiated with the Advisor. In negotiating a
new fee structure, the Independent Directors shall consider all of the factors
they deem relevant, including, but not limited to: (i) the amount of the
advisory fee in relation to the asset value, composition and profitability of
the Company's portfolio; (ii) the success of the Advisor in generating
opportunities that meet the investment objectives of the Company; (iii) the
rates charged to other REITs and to investors other than REITs by advisors
performing the same or similar services; (iv) additional revenues realized by
the Advisor and its Affiliates through their relationship with the Company,
including loan administration, underwriting or broker commissions, servicing,
engineering, inspection and other fees, whether paid by the Company or by others
with whom the Company does business; (v) the quality and extent of service and
advice furnished by the Advisor; (vi) the performance of the investment
portfolio of the Company, including income, conversion or appreciation of
capital, and number and frequency of problem investments; and (vii) the quality
of the Property, Loan and other Permitted Investment portfolio of the Company in
relationship to the investments generated by the Advisor for its own account.
The new fee structure can be no more favorable to the Advisor than the current
fee structure.

         (10) EXPENSES.

                  (a) In addition to the compensation paid to the Advisor
pursuant to Paragraph 9 hereof, the Company shall pay directly or reimburse the
Advisor for all of the expenses paid or incurred by the Advisor in connection
with the services it provides to the Company pursuant to this Agreement,
including, but not limited to:

                      (i) the Company's Organizational and Offering Expenses;

                      (ii) Acquisition Expenses incurred in connection with the
selection and acquisition of Properties or the making of Loans or other
Permitted Investments for goods and services provided by the Advisor at the
lesser of the actual cost or 90% of the competitive rate charged by unaffiliated
persons providing similar goods and services in the same geographic location;

                      (iii) the actual cost of goods and materials used by the
Company and obtained from entities not affiliated with the Advisor, other than
Acquisition Expenses, including brokerage fees paid in connection with the
purchase and sale of securities;

                      (iv) interest and other costs for borrowed money,
including discounts, points and other similar fees;

                      (v) taxes and assessments on income or Property and taxes
as an expense of doing business;

                                      -16-
<PAGE>
                      (vi) costs associated with insurance required in
connection with the business of the Company or by the Directors;

                      (vii) expenses of managing and operating Properties owned
by the Company, whether payable to an Affiliate of the Company or a
non-affiliated Person;

                      (viii) all expenses in connection with payments to the
Directors and meetings of the Directors and Stockholders;

                      (ix) expenses associated with Listing or with the issuance
and distribution of Shares and Securities, such as selling commissions and fees,
advertising expenses, taxes, legal and accounting fees, and Listing and
registration fees;

                      (x) expenses connected with payments of Distributions in
cash or otherwise made or caused to be made by the Directors to the
Stockholders;

                      (xi) expenses of organizing, revising, amending,
converting, modifying, or terminating the Company or the Articles of
Incorporation;

                      (xii) expenses of maintaining communications with
Stockholders, including the cost of preparation, printing, and mailing annual
reports and other Stockholder reports, proxy statements and other reports
required by governmental entities;

                      (xiii) expenses related to negotiating and servicing Loans
and other Permitted Investments;

                      (xiv) administrative service expenses (including personnel
costs; provided, however, that no reimbursement shall be made for costs of
personnel to the extent that such personnel perform services in transactions for
which the Advisor receives a separate fee at the lesser of actual cost or 90% of
the competitive rate charged by unaffiliated persons providing similar goods and
services in the same geographic location); and

                      (xv) audit, accounting and legal fees.

         (b) Expenses incurred by the Advisor on behalf of the Company and
payable pursuant to this Paragraph 10 shall be reimbursed no less than monthly
to the Advisor. The Advisor shall prepare a statement documenting the expenses
of the Company during each quarter, and shall deliver such statement to the
Company within 45 days after the end of each quarter.

         (11) OTHER SERVICES. Should the Directors request that the Advisor or
any director, officer or employee thereof render services for the Company other
than set forth in Paragraph 3, such services shall be separately compensated at
such rates and in such amounts as are agreed by the Advisor and the Independent
Directors of the Company, subject to the limitations contained in

                                      -17-
<PAGE>

the Articles of Incorporation, and shall not be deemed to be services pursuant
to the terms of this Agreement.

         (12) REIMBURSEMENT TO THE ADVISOR. The Company shall not reimburse the
Advisor at the end of any fiscal quarter for Operating Expenses that, in the
four consecutive fiscal quarters then ended (the "Expense Year") exceed the
greater of 2% of Average Invested Assets or 25% of Net Income (the "2%/25%
Guidelines") for such year. Within 60 days after the end of any fiscal quarter
of the Company for which total Operating Expenses for the Expense Year exceed
the 2%/25% Guidelines, the Advisor shall reimburse the Company the amount by
which the total Operating Expenses paid or incurred by the Company exceed the
2%/25% Guidelines. The Company will not reimburse the Advisor or its Affiliates
for services for which the Advisor or its Affiliates are entitled to
compensation in the form of a separate fee. All figures used in the foregoing
computation shall be determined in accordance with generally accepted accounting
principles applied on a consistent basis.

         (13) OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall
prevent the Advisor from engaging in other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and
the management of other programs advised, sponsored or organized by the Advisor
or its Affiliates; nor shall this Agreement limit or restrict the right of any
director, officer, employee, or stockholder of the Advisor or its Affiliates to
engage in any other business or to render services of any kind to any other
partnership, corporation, firm, individual, trust or association. The Advisor
may, with respect to any investment in which the Company is a participant, also
render advice and service to each and every other participant therein. The
Advisor shall report to the Directors the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor's obligations to the
Company and its obligations to or its interest in any other partnership,
corporation, firm, individual, trust or association. The Advisor or its
Affiliates shall promptly disclose to the Directors knowledge of such condition
or circumstance. If the Sponsor, Advisor, Director or Affiliates thereof have
sponsored other investment programs with similar investment objectives which
have investment funds available at the same time as the Company, it shall be the
duty of the Directors (including the Independent Directors) to adopt the method
set forth in the Registration Statement or another reasonable method by which
properties are to be allocated to the competing investment entities and to use
their best efforts to apply such method fairly to the Company.

         The Advisor shall be required to use its best efforts to present a
continuing and suitable investment program to the Company which is consistent
with the investment policies and objectives of the Company, but neither the
Advisor nor any Affiliate of the Advisor shall be obligated generally to present
any particular investment opportunity to the Company even if the opportunity is
of character which, if presented to the Company, could be taken by the Company.

         In the event that the Advisor or its Affiliates is presented with a
potential investment which might be made by the Company and by another
investment entity which the Advisor or its Affiliates advises or manages, the
Advisor and its Affiliates shall consider the investment portfolio of each

                                      -18-
<PAGE>

entity, cash flow of each entity, the effect of the acquisition on the
diversification of each entity's portfolio, rental payments during any renewal
period, the estimated income tax effects of the purchase on each entity, the
policies of each entity relating to leverage, the funds of each entity available
for investment and the length of time such funds have been available for
investment. In the event that an investment opportunity becomes available which
is suitable for both the Company and a public or private entity which the
Advisor or its Affiliates are Affiliated, then the entity which has had the
longest period of time elapse since it was offered an investment opportunity
will first be offered the investment opportunity. For purposes of this conflict
resolution procedure, an investment opportunity will be considered "offered" to
the Company when an opportunity is presented to the Board of Directors for its
consideration.

         (14) RELATIONSHIP OF ADVISOR AND COMPANY. The Company and the Advisor
are not partners or joint venturers with each other, and nothing in this
Agreement shall be construed to make them such partners or joint venturers or
impose any liability as such on either of them.

         (15) TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in
force until March 8, 2005, subject to an unlimited number of successive one-year
renewals upon mutual consent of the parties. It is the duty of the Directors to
evaluate the performance of the Advisor annually before renewing the Agreement,
and each such agreement shall have a term of no more than one year.

         (16) TERMINATION BY EITHER PARTY. This Agreement may be terminated upon
60 days written notice without Cause or penalty, by either party, or by the
mutual consent of the parties (by a majority of the Independent Directors of the
Company or a majority of the Board of Directors of the Advisor, as the case may
be).

         (17) ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the
Advisor to an Affiliate with the approval of a majority of the Directors
(including a majority of the Independent Directors). The Advisor may assign any
rights to receive fees or other payments under this Agreement without obtaining
the approval of the Directors. This Agreement shall not be assigned by the
Company without the consent of the Advisor, except in the case of an assignment
by the Company to a corporation or other organization which is a successor to
all of the assets, rights and obligations of the Company, in which case such
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company is bound by this Agreement.

         (18) Subcontracts with Affiliates. The Advisor may subcontract with an
Affiliate for a portion of the services and duties to be performed under this
Agreement without obtaining the approval of the Directors to the extent such
services or duties are primarily administrative in nature. The Advisor may
further subcontract any rights to receive fees or other payments for such
services or duties under this Agreement without obtaining the approval of the
Directors.

         (19) PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.  Payments to
the Advisor pursuant to this Paragraph (19) shall be subject to the 2%/25%
Guidelines to the extent applicable.

                  (a) After the Termination Date, the Advisor shall not be
entitled to compensation for further services hereunder except it shall be
entitled to receive from the Company within 30 days after the effective date of
such termination all unpaid reimbursements of expenses and all earned but unpaid
fees payable to the Advisor prior to termination of this Agreement, exclusive of
disputed items arising out of possible unauthorized transactions.

                                      -19-
<PAGE>

                  (b) Upon termination, the Advisor shall be entitled to payment
of the Performance Fee if performance standards satisfactory to a majority of
the Board of Directors, including a majority of the Independent Directors, when
compared to (a) the performance of the Advisor in comparison with its
performance for other entities, and (b) the performance of other advisors for
similar entities, have been met. If Listing has not occurred, the Performance
Fee, if any, shall equal 10% of the amount, if any, by which (i) the appraised
value of the assets of the Company on the Termination Date, less the amount of
all indebtedness secured by such assets, plus the total Distributions paid to
stockholders from the Company's inception through the Termination Date, exceeds
(ii) Invested Capital plus an amount equal to the Stockholders' 8% Return from
inception through the Termination Date. The Advisor shall be entitled to receive
all accrued but unpaid compensation and expense reimbursements in cash within 30
days of the Termination Date. All other amounts payable to the Advisor in the
event of a termination shall be evidenced by a promissory note and shall be
payable from time to time.

                  (c) The Performance Fee shall be paid in 12 equal quarterly
installments without interest on the unpaid balance, provided, however, that no
payment will be made in any quarter in which such payment would jeopardize the
Company's REIT status, in which case any such payment or payments will be
delayed until the next quarter in which payment would not jeopardize REIT
status. Notwithstanding the preceding sentence, any amounts which may be deemed
payable at the date the obligation to pay the Performance Fee is incurred which
relate to the appreciation of the Company's assets shall be an amount which
provides compensation to the terminated Advisor only for that portion of the
holding period for the respective assets during which the Advisor provided
services to the Company.

                  (d) If Listing occurs, the Performance Fee, if any, payable
thereafter will be as negotiated between the Company and the Advisor. The
Advisor shall not be entitled to payment of the Performance Fee in the event
this Agreement is terminated because of failure of the Company and the Advisor
to establish, pursuant to Paragraph 9(g) hereof, a fee structure appropriate for
a perpetual-life entity at such time, if any, as Listing occurs. The Performance
Fee, to the extent payable at the time of Listing, will not be payable in the
event the Subordinated Incentive Fee is paid.

                  (e) The Advisor shall promptly upon termination:

                           (i) pay over to the Company all money collected and
held for the account of the Company pursuant to this Agreement, after deducting
any accrued compensation and reimbursement for its expenses to which it is then
entitled;

                           (ii) deliver to the Directors a full accounting,
including a statement showing all payments collected by it and a statement of
all money held by it, covering the period following the date of the last
accounting furnished to the Directors;

                                      -20-
<PAGE>

                           (iii) deliver to the Directors all assets, including
Properties, Loans, and other Permitted Investments, and documents of the Company
then in the custody of the Advisor; and

                           (iv) cooperate with the Company to provide an orderly
management transition.

         (20) INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and
hold harmless the Advisor and its Affiliates, including their respective
officers, directors, partners and employees, from all liability, claims, damages
or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys' fees, to the extent such liability,
claims, damages or losses and related expenses are not fully reimbursed by
insurance, subject to any limitations imposed by the laws of the State of
Maryland or the Articles of Incorporation of the Company. Notwithstanding the
foregoing, the Advisor shall not be entitled to indemnification or be held
harmless pursuant to this Paragraph 20 for any activity for which the Advisor
shall be required to indemnify or hold harmless the Company pursuant to
Paragraph 21. Any indemnification of the Advisor may be made only out of the net
assets of the Company and not from Stockholders.

         (21) INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
harmless the Company from contract or other liability, claims, damages, taxes or
losses and related expenses including attorneys' fees, to the extent that such
liability, claims, damages, taxes or losses and related expenses are not fully
reimbursed by insurance and are incurred by reason of the Advisor's bad faith,
fraud, misconduct, or negligence, but the Advisor shall not be held responsible
for any action of the Board of Directors in following or declining to follow any
advice or recommendation given by the Advisor.

         (22) NOTICES. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is required by the Articles of
Incorporation, the Bylaws, or accepted by the party to whom it is given, and
shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

To the Directors and to the Company:                CNL Income Properties, Inc.
                                                    CNL Center at City Commons
                                                    450 South Orange Avenue
                                                    Orlando, Florida  32801

To the Advisor:                                     CNL Income Corp.
                                                    CNL Center at City Commons
                                                    450 South Orange Avenue
                                                    Orlando, Florida  32801

                                      -21-
<PAGE>

Either party may at any time give notice in writing to the other party of a
change in its address for the purposes of this Paragraph 22.

         (23) MODIFICATION. This Agreement shall not be changed, modified,
terminated, or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or
assignees.

         (24) SEVERABILITY. The provisions of this Agreement are independent of
and severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

         (25) CONSTRUCTION. The provisions of this Agreement shall be
interpreted, construed and enforced in all respects in accordance with the laws
of the State of Florida applicable to contracts to be made and performed
entirely in said state.

         (26) ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or
amended other than by an agreement in writing.

         (27) INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the
part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

         (28) GENDER. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context requires.

         (29) TITLES NOT TO AFFECT INTERPRETATION. The titles of paragraphs and
subparagraphs contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

                                      -22-
<PAGE>

         (30) EXECUTION IN COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the
signatories.

         (31) NAME. CNL Income Corp. has a proprietary interest in the name
"CNL." Accordingly, and in recognition of this right, if at any time the Company
ceases to retain CNL Income Corp. or an Affiliate thereof to perform the
services of Advisor, the Directors of the Company will, promptly after receipt
of written request from CNL Income Corp., cease to conduct business under or use
the name "CNL" or any diminutive thereof and the Company shall use its best
efforts to change the name of the Company to a name that does not contain the
name "CNL" or any other word or words that might, in the sole discretion of the
Advisor, be susceptible of indication of some form of relationship between the
Company and the Advisor or any Affiliate thereof. Consistent with the foregoing,
it is specifically recognized that the Advisor or one or more of its Affiliates
has in the past and may in the future organize, sponsor or otherwise permit to
exist other investment vehicles (including vehicles for investment in real
estate) and financial and service organizations having "CNL" as a part of their
name, all without the need for any consent (and without the right to object
thereto) by the Company or its Directors.

         (32) INITIAL INVESTMENT. The Advisor has contributed to the Company
$200,000 in exchange for 20,000 Equity Shares (the "Initial Investment"). The
Advisor may not sell these Equity Shares while the Advisory Agreement is in
effect, although the Advisor may transfer such Equity Shares to Affiliates. The
restrictions included above shall not apply to any Equity Shares, other than the
Equity Shares acquired through the Initial Investment, acquired by the Advisor
or its Affiliates. The Advisor shall not vote any Equity Shares it now owns, or
hereafter acquires, in any vote for the removal of Directors or any vote
regarding the approval or termination of any contract with the Advisor or any of
its Affiliates.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above written.

                                        CNL INCOME PROPERTIES, INC.

                                        By:_______________________________
                                        Name:
                                        Its:

                                        CNL INCOME CORP.

                                        By:______________________________
                                        Name:
                                        Its:

                                      -23-<PAGE>
                                                                    Exhibit 10.1

                          SECURITIES PURCHASE AGREEMENT

         This Securities Purchase Agreement (this "Agreement") is dated as of
February 12, 2004, among Keryx Biopharmaceuticals, Inc., a Delaware corporation
(the "Company"), and the purchasers identified on the signature pages hereto
(each a "Purchaser" and collectively the "Purchasers"); and

         WHEREAS, subject to the terms and conditions set forth in this
Agreement and pursuant to Section 4(2) of the Securities Act (as defined below),
and Rule 506 promulgated thereunder, the Company desires to issue and sell to
the Purchasers, and the Purchasers, severally and not jointly, desire to
purchase from the Company (the "Offering") in the aggregate, up to 3,200,000
shares of Common Stock (as defined below) (the "Maximum Offering Amount").

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees
as follows:

                                   ARTICLE I.
                                   DEFINITIONS

         1.1 Definitions. In addition to the terms defined elsewhere in this
Agreement, for all purposes of this Agreement, the following terms have the
meanings indicated in this Section 1.1:

                  "Affiliate" means any Person that, directly or indirectly
         through one or more intermediaries, controls or is controlled by or is
         under common control with a Person as such terms are used in and
         construed under Rule 144. With respect to a Purchaser, any investment
         fund or managed account that is managed on a discretionary basis by the
         same investment manager as such Purchaser will be deemed to be an
         Affiliate of such Purchaser.

                  "Business Day" means any day except Saturday, Sunday and any
         day which shall be a federal legal holiday or a day on which banking
         institutions in the State of New York are authorized or required by law
         or other governmental action to close.

                  "Closing" means the closing of the purchase and sale of the
         Common Stock pursuant to Section 2.1.

                  "Closing Date" means February 17, 2004.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the common stock of the Company, $0.001
         par value per share, and any securities into which such common stock
         may hereafter be reclassified.

                  "Company Counsel" means Alston & Bird LLP.

                  "Effective Date" means the date that the Registration
         Statement is first declared effective by the Commission.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended.

                  "Expiration Date" shall mean February 13, 2004, or such other
         date as may be selected by the Company in its sole discretion without
         notice to investors within 30 days thereafter.

                  "Liens" means a lien, charge, security interest, encumbrance,
         right of first refusal or other restriction.

                  "Material Adverse Effect" shall have the meaning ascribed to
         such term in Section 3.1(a).

                  "Per Share Purchase Price" equals $10.00.

                                       1
<PAGE>
                  "Person" means an individual or corporation, partnership,
         trust, incorporated or unincorporated association, joint venture,
         limited liability company, joint stock company, government (or an
         agency or subdivision thereof) or other entity of any kind.

                  "Registration Statement" means a registration statement
         meeting the requirements set forth in the Registration Rights Agreement
         and covering the resale by the Purchasers of the Shares.

                  "Registration Rights Agreement" means the Registration Rights
         Agreement, dated as of the date of this Agreement, among the Company
         and each Purchaser, in the form of Exhibit A hereto.

                  "Rule 144" means Rule 144 promulgated by the Commission
         pursuant to the Securities Act, as such Rule may be amended from time
         to time, or any similar rule or regulation hereafter adopted by the
         Commission having substantially the same effect as such Rule.

                  "Securities" means the Shares.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Shares" means the shares of Common Stock issued or issuable
         to each Purchaser pursuant to this Agreement.

                  "Subscription Amount" means, as to each Purchaser and the
         Closing, the amounts set forth below such Purchaser's signature block
         on the signature page hereto, in United States dollars and in
         immediately available funds.

                  "Trading Day" means (i) a day on which the Common Stock is
         traded on a Trading Market, or (ii) if the Common Stock is not listed
         on a Trading Market, a day on which the Common Stock is traded on the
         over-the-counter market, as reported by the OTC Bulletin Board, or
         (iii) if the Common Stock is not quoted on the OTC Bulletin Board, a
         day on which the Common Stock is quoted in the over-the-counter market
         as reported by the National Quotation Bureau Incorporated (or any
         similar organization or agency succeeding to its functions of reporting
         prices); provided, that in the event that the Common Stock is not
         listed or quoted as set forth in (i), (ii) and (iii) hereof, then
         Trading Day shall mean a Business Day.

                  "Trading Market" means the following markets or exchanges on
         which the Common Stock is listed or quoted for trading on the date in
         question: the American Stock Exchange, the New York Stock Exchange, the
         Nasdaq National Market or the Nasdaq SmallCap Market.

                  "Transaction Documents" means this Agreement, the Registration
         Rights Agreement and any other documents or agreements executed in
         connection with the transactions contemplated hereunder.

                                   ARTICLE II.
                                PURCHASE AND SALE

         2.1 Closing. Each Purchaser shall purchase from the Company, and the
Company shall issue and sell to each Purchaser, a number of Shares equal to such
Purchaser's Subscription Amount divided by the Per Share Purchase Price. Upon
satisfaction of the conditions set forth in Section 2.2, the Closing shall occur
at the offices of the Company, or such other location as the parties shall
mutually agree. The Company may continue the Offering, in one or more Closings,
until the earlier of the sale of the Maximum Offering Amount or until the
Expiration Date. Purchasers will be required to deliver executed, binding
Securities Purchase Agreements by the Expiration Date, the Closing of which will
only be subject to the satisfaction of the Closing Conditions in Section 2.2.

        2.2    Closing Conditions.

                                       2
<PAGE>
                  (a) As a condition to the Purchasers' obligation to close, at
         the Closing (unless otherwise specified below) the Company shall have
         satisfied each of the conditions set forth below or shall deliver or
         cause to be delivered to each Purchaser the items set forth below, as
         appropriate:

                           (i) this Agreement duly executed by the Company;

                           (ii) a copy of the resolutions of the Board of
                  Directors of the Company and a resolution of the shareholders,
                  if required, authorizing and approving the Company's
                  execution, delivery and performance of the Transaction
                  Documents, all matters in connection with the Financing
                  Documents, and the transactions contemplated thereby;

                           (iii) within five (5) Business Days of the Closing
                  Date, a certificate evidencing a number of Shares equal to
                  such Purchaser's Subscription Amount divided by the Per Share
                  Purchase Price, registered in the name of such Purchaser or
                  its nominee;

                           (iv) the Registration Rights Agreement duly executed
                  by the Company;

                           (v) a legal opinion of Company Counsel, in a form
                  reasonably satisfactory to Purchasers;

                           (vi) the representations and warranties made by the
                  Company herein shall be true and correct in all material
                  respects on the dates made and on the date of Closing;

                           (vii) all covenants, agreements and conditions
                  contained in this Agreement to be performed by the Company on
                  or prior to the Closing shall have been performed or complied
                  with in all material respects; and

                           (viii) no statute, rule, regulation, order, decree,
                  ruling or injunction shall have been enacted, entered,
                  promulgated, endorsed or threatened or is pending by or before
                  any governmental authority of competent jurisdiction which in
                  any material respect restricts, prohibits or threatens to
                  restrict or prohibit the consummation of any of the
                  transactions contemplated by the Transaction Documents.

                  (b) As a condition to the Company's obligation to close, at
         the Closing, each Purchaser shall have satisfied each of the conditions
         set forth below or shall deliver or cause to be delivered to the
         Company the items set forth below, as appropriate:

                           (i) this Agreement duly executed by such Purchaser;

                           (ii) such Purchaser's Subscription Amount as to such
                  Closing by wire transfer to the account of the Company as
                  provided to the Purchasers in writing prior to the Closing
                  Date;

                           (iii) the Registration Rights Agreement duly executed
                  by such Purchaser;

                           (iv) the representations and warranties made by the
                  Purchasers herein shall be true and correct in all material
                  respects on the dates made and on the date of Closing;

                           (v) each Purchaser shall have performed, satisfied
                  and complied in all material respects with all covenants,
                  agreements and conditions required by the Transaction
                  Documents to be performed, satisfied or complied with by such
                  Purchaser at or before the Closing; and

                           (vi) no statute, rule, regulation, executive order,
                  decree, ruling or injunction shall have been enacted, entered,
                  promulgated, endorsed or threatened or is pending by or before
                  any governmental authority of competent jurisdiction which
                  prohibits or threatens to prohibit the consummation of any of
                  the transactions contemplated by the Transaction Documents.

                                       3
<PAGE>
                  (c) As a condition of each of the Purchasers' and the
         Company's obligation to close, there shall have been no Material
         Adverse Effect with respect to the Company since the date hereof.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         3.1 Representations and Warranties of the Company. Except as set forth
in the Company's public filings under the Exchange Act, the Company, including
its subsidiaries for the purposes of this Article 3, hereby makes the following
representations and warranties as of the date hereof and as of the Closing Date
to each Purchaser:

                  (a) Organization and Qualification. The Company is an entity
         duly incorporated or otherwise organized, validly existing and in good
         standing under the laws of the jurisdiction of its incorporation or
         organization (as applicable), with the requisite corporate power and
         authority to own and use its properties and assets and to carry on its
         business as currently conducted. The Company is not in violation of any
         of the provisions of its certificate of incorporation, bylaws or other
         organizational or charter documents. The Company is duly qualified to
         conduct business and is in good standing as a foreign corporation or
         other entity in each jurisdiction in which the nature of the business
         conducted or property owned by it makes such qualification necessary,
         except where the failure to be so qualified or in good standing, as the
         case may be, would not have or reasonably be expected to result in (i)
         a material adverse effect on the legality, validity or enforceability
         of any Transaction Document, (ii) a material adverse effect on the
         results of operations, assets, business or financial condition of the
         Company, or (iii) a material adverse effect on the Company's ability to
         perform in any material respect on a timely basis its obligations under
         any Transaction Document (any of (i), (ii) or (iii), a "Material
         Adverse Effect").

                  (b) Authorization; Enforcement. The Company has the requisite
         corporate power and authority to enter into and to consummate the
         transactions contemplated by each of the Transaction Documents and
         otherwise to carry out its obligations thereunder. The execution and
         delivery of each of the Transaction Documents by the Company and the
         consummation by it of the transactions contemplated thereby have been
         duly authorized by all necessary action on the part of the Company and
         no further action is required by the Company in connection therewith.
         Each Transaction Document has been (or upon delivery will have been)
         duly executed by the Company and, when delivered in accordance with the
         terms hereof, will constitute the valid and binding obligation of the
         Company enforceable against the Company in accordance with its terms
         except (i) as limited by applicable bankruptcy, insolvency,
         reorganization, moratorium and other laws of general application
         affecting enforcement of creditors' rights generally and (ii) as
         limited by laws relating to the availability of specific performance,
         injunctive relief or other equitable remedies, and (iii) with respect
         to the indemnification provisions set forth in the Registration Rights
         Agreement, as limited by public policy.

                  (c) No Conflicts. The execution, delivery and performance of
         the Transaction Documents by the Company and the consummation by the
         Company of the transactions contemplated thereby do not and will not
         (i) conflict with or violate any provision of the Company's certificate
         of incorporation, bylaws or other organizational or charter documents,
         or (ii) conflict with, or constitute a default (or an event that with
         notice or lapse of time or both would become a default) under, or give
         to others any rights of termination, amendment, acceleration or
         cancellation (with or without notice, lapse of time or both) of, any
         agreement, credit facility, debt or other instrument (evidencing a
         Company debt or otherwise) or other understanding to which the Company
         is a party or by which any property or asset of the Company is bound or
         affected, or (iii) result in a violation of any law, rule, regulation,
         order, judgment, injunction, decree or other restriction of any court
         or governmental authority to which the Company is subject (including
         federal and state securities laws and regulations), or by which any
         property or asset of the Company is bound or affected; except in the
         case of each of clauses (ii) and (iii), such as would not have or
         reasonably be expected to result in a Material Adverse Effect.

                                       4
<PAGE>
                  (d) Filings, Consents and Approvals. The Company is not
         required to obtain any consent, waiver, authorization or order of, give
         any notice to, or make any filing or registration with, any court or
         other federal, state, local or other governmental authority or other
         Person in connection with the execution, delivery and performance by
         the Company of the Transaction Documents, other than (i) the filing
         with the Commission of the Registration Statement, and one or more
         Forms D with respect to the Shares as may be required under Regulation
         D of the Securities Act, the application(s) to each Trading Market for
         the listing of the Shares for trading thereon in the time and manner
         required thereby, and applicable Blue Sky filings and (ii) such as have
         already been obtained or such exemptive filings as are required to be
         made under applicable state and federal securities laws.

                  (e) Capitalization. All of the outstanding shares of Common
         Stock are, and all of the Shares, when issued, will be, duly
         authorized, validly issued, fully paid and nonassessable, and free and
         clear of all liens created by the Company, and all such shares were,
         and the Shares, will be, issued in material compliance with all
         applicable federal and state securities laws, including available
         exemptions therefrom, and none of such issuances were, and the issuance
         of the Shares will not be, made in violation of any pre-emptive or
         other rights. The Company has reserved from its duly authorized capital
         stock the maximum number of shares of Common Stock issuable pursuant to
         this Agreement. The issuance of the Shares will not trigger any
         anti-dilution rights of any existing securities of the Company.

                  (f) Reports and Financial Statements. The Company has made
         available to the Purchasers, prior to the execution of this Agreement,
         a copy of the Company's Annual Report on Form 10-K for the year ended
         December 31, 2002, the Company's Quarterly Reports on Form 10-Q that
         have been filed for all quarters ended since December 31, 2002, the
         definitive proxy statement for the Company's 2003 annual meeting of
         stockholders, and will make available any Current Reports on Form 8-K
         filed since December 31, 2002 (as such documents have since the time of
         their filing been amended or supplemented, and together with all
         reports, documents and information filed on or after the date first
         written above through the date of Closing with the SEC, including all
         information incorporated therein by reference, collectively, the "SEC
         Reports"). Since November 12, 2003, there has not been any material
         adverse change in the business, financial condition, operations,
         results of operations, assets, employee relations, customer or supplier
         relations of the Company. The SEC Reports (a) complied and will comply
         as to form in all material respects with the requirements of the
         Securities Act and the Securities Exchange Act of 1934, as amended (the
         "Exchange Act"), and (b) did not, at the time of their filing, contain
         any untrue statement of a material fact or omit to state a material
         fact required to be stated therein or necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading.

                  (g) Conformity of Descriptions. The Shares conform in all
         material respects to the descriptions of the Company's Common Stock
         contained in the Company's SEC Reports and other filings with the SEC.

                  (h) Statements True and Correct. No representation, warranty,
         statement, certificate, instrument, or other writing furnished or to be
         furnished by the Company to Purchaser or its representatives pursuant
         to this Agreement or any other document, agreement, or instrument
         referred to herein, including the SEC reports, contains or will contain
         any untrue statement of material fact or will omit to state a material
         fact necessary to make the statements therein not misleading.

                  (i) Certain Fees. Any brokerage, finder's fees or commissions
         that are or will be payable by the Company to any broker, financial
         advisor or consultant, finder, placement agent, investment banker, bank
         or other Person with respect to the transactions contemplated by this
         Agreement will be paid solely by the Company.

                  (j) Private Placement. Assuming the accuracy of the Purchasers
         representations and warranties set forth in Section 3.2, no
         registration under the Securities Act is required for the offer

                                       5
<PAGE>
         and sale of the Securities by the Company to the Purchasers as
         contemplated hereby. The issuance and sale of the Securities hereunder
         does not contravene the rules and regulations of the Securities Act or
         the Trading Market.

                  (k) Investment Company. The Company is not, and is not an
         Affiliate of, an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (l) Form S-3 Eligibility. The Company is eligible to register
         the resale of its Common Stock by the Purchasers under Form S-3 or
         other comparable form promulgated under the Securities Act.

                  (m) Application of Takeover Protections. Assuming the
         Purchasers beneficially own any shares of Common Stock prior to the
         date hereof, the Company and its Board of Directors have taken all
         necessary action, if any, in order to render inapplicable any control
         share acquisition, business combination, poison pill (including any
         distribution under a rights agreement) or other similar anti-takeover
         provision under the Company's Certificate of Incorporation (or similar
         charter documents) or the laws of its state of incorporation that is or
         could become applicable to the Purchasers as a result of the Purchasers
         and the Company fulfilling their obligations or exercising their rights
         under the Transaction Documents, including without limitation the
         Company's issuance of the Securities and the Purchasers' ownership of
         the Securities.

                  (n) No Integrated Offering. Neither the Company, nor any of
         its Affiliates, nor any Person acting on its or their behalf has,
         directly or indirectly, made any offers or sales of any security or
         solicited any offers to buy any security, under circumstances that
         would cause this offering of the Securities to be integrated with prior
         offerings by the Company in a manner that would require the
         registration under the Securities Act of the sale of the Securities to
         the Purchasers or that would be integrated with the offer or sale of
         the Securities for purposes of the rules and regulations of any Trading
         Market.

                  (o) Listing and Maintenance Requirements. The Company has not,
         in the 12 months preceding the date hereof, received notice from any
         Trading Market on which the Common Stock is or has been listed or
         quoted to the effect that the Company is not in compliance with the
         listing or maintenance requirements of such Trading Market. The Company
         is, and has no reason to believe that it will not in the foreseeable
         future continue to be, in compliance with all such listing and
         maintenance requirements.

                  (p) Sarbanes-Oxley; Internal Accounting Controls. The Company
         is in material compliance with all provisions of the Sarbanes-Oxley Act
         of 2002 which are applicable to it as of the Closing Date. The Company
         maintains a system of internal accounting controls sufficient to
         provide reasonable assurance that (i) transactions are executed in
         accordance with management's general or specific authorizations, (ii)
         transactions are recorded as necessary to permit preparation of
         financial statements in conformity with GAAP, (iii) access to assets is
         permitted only in accordance with management's general or specific
         authorization, and (iv) the recorded accountability for assets is
         compared with the existing assets at reasonable intervals and
         appropriate action is taken with respect to any differences. The
         Company has established disclosure controls and procedures (as defined
         in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
         designed such disclosures controls and procedures to ensure that
         material information relating to the Company, including its
         subsidiaries, is made known to the certifying officers during the
         period in which the Company's most recently filed period report under
         the Exchange Act, as the case may be, is being prepared. The Company's
         certifying officers have evaluated the effectiveness of the Company's
         controls and procedures as of a date within 90 days prior to the filing
         date of the most recently filed period report under the Exchange Act
         (such date, the "Evaluation Date"). The Company presented in its most
         recently filed period report under the Exchange Act the conclusions of
         the certifying officers about the effectiveness of the disclosure
         controls and procedures based on their evaluations as of the Evaluation
         Date. Since the Evaluation Date, there have been no significant changes
         in the Company's internal controls (as

                                       6
<PAGE>
         such term is defined in Item 307(b) of Regulation S-K under the
         Exchange Act) or, the Company's knowledge, in other factors that could
         significantly affect the Company's internal controls.

                  (q) Intellectual Property. To the knowledge of the Company,
         the Company owns or possesses sufficient rights to use all material
         patents, patent rights, trademarks, copyrights, licenses, inventions,
         trade secrets, trade names and know-how (collectively, "Intellectual
         Property") as are owned or used by it or that are necessary for the
         conduct of its business as now conducted except where the failure to
         currently own or possess could not reasonably be expected to have a
         Material Adverse Effect. The Company has not received any notice of,
         nor has it any knowledge of, any infringement of or conflict with
         asserted rights of the Company by others with respect to any
         Intellectual Property, except as could not reasonably be expected to
         have a Material Adverse Effect. To the knowledge of the Company, no
         product or process presently used or proposed to be manufactured,
         marketed, offered, sold or used by the Company will violate any license
         or infringe on any intellectual property rights of any other Person,
         except as could not reasonable be expected to have a Material Adverse
         Effect.

                  (r) Litigation. There is no litigation or governmental
         proceeding or investigation pending or, to the knowledge of the
         Company, threatened against the Company or against any officer or key
         employee which may have a Material Adverse Effect or which may call
         into question the validity, or materially hinder the enforceability or
         performance, of the Transaction Documents.

                  (s) Insurance. The Company carries insurance covering its
         properties and businesses customary for the type and scope of its
         properties and business. All such policies are in full force and
         effect, and are underwritten by financially sound and reputable
         insurers. All such policies will remain in full force and effect and
         will not in any way be affected by, or terminate or lapse by reason of
         any of the transactions contemplated hereby.

                  (t) Disclosure. The Company confirms that, neither the Company
         nor any other Person acting on its behalf has provided any of the
         Purchasers or their agents or counsel with any information, other than
         information relating to the Offering, that constitutes or might
         constitute material, non-public information. The Company understands
         and confirms that the Purchasers will rely on the foregoing
         representations and covenants in effecting transactions in securities
         of the Company. All disclosure provided to the Purchasers regarding the
         Company, its business and the transactions contemplated hereby,
         including the Schedules to this Agreement, furnished by or on behalf of
         the Company with respect to the representations and warranties made
         herein are true and correct with respect to such representations and
         warranties and do not contain any untrue statement of a material fact
         or omit to state any material fact necessary in order to make the
         statements made therein, in light of the circumstances under which they
         were made, not misleading. The Company acknowledges and agrees that no
         Purchaser makes or has made any representations or warranties with
         respect to the transaction contemplated hereby other than those
         specifically set forth in Section 3.2 hereof.

         3.2 Representations and Warranties of the Purchasers. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

                  (a) Organization; Authority. Such Purchaser is an entity duly
         organized, validly existing and in good standing under the laws of the
         jurisdiction of its organization with full right, corporate, limited
         liability or partnership power and authority to enter into and to
         consummate the transactions contemplated by the Transaction Documents
         and otherwise to carry out its obligations thereunder. The execution,
         delivery and performance by such Purchaser of the transactions
         contemplated by this Agreement has been duly authorized by all
         necessary corporate or similar action on the part of such Purchaser.
         Each Transaction Document to which it is a party has been duly executed
         by such Purchaser, and when delivered by such Purchaser in accordance
         with the terms hereof, will constitute the valid and legally binding
         obligation of such Purchaser, enforceable against it in accordance with
         its terms except (i) as limited by applicable bankruptcy, insolvency,
         reorganization, moratorium and other laws of general application
         affecting

                                       7
<PAGE>
         enforcement of creditors' rights generally and (ii) as limited by laws
         relating to the availability of specific performance, injunctive relief
         or other equitable remedies, and (iii) with respect to the
         indemnification provisions set forth in the Registration Rights
         Agreement, as limited by public policy.

                  (b) General Solicitation. Such Purchaser is not purchasing the
         Securities as a result of any advertisement, article, notice or other
         communication regarding the Securities published in any newspaper,
         magazine or similar media or broadcast over television or radio or
         presented at any seminar or any other general solicitation or general
         advertisement.

                  (c) No Public Sale or Distribution. Such Purchaser is
         acquiring the Shares for its own account and not with a view towards,
         or for resale in connection with, the public sale or distribution
         thereof, except pursuant to sales registered or exempted under the
         Securities Act; provided, however, that by making the representations
         herein, such Purchaser does not agree to hold any of the Securities for
         any minimum or other specific term and reserves the right to dispose of
         the Securities at any time in accordance with or pursuant to a
         registration statement or an exemption under the Securities Act. Such
         Purchaser is acquiring the Securities hereunder in the ordinary course
         of its business. Such Purchaser does not have any agreement or
         understanding, directly or indirectly, with any Person to distribute
         any of the Securities.

                  (d) Accredited Investor Status. Such Purchaser is an
         "accredited investor" as that term is defined in Rule 501(a) of
         Regulation D.

                  (e) Reliance on Exemptions. Such Purchaser understands that
         the Shares are being offered and sold to it in reliance on specific
         exemptions from the registration requirements of United States federal
         and state securities laws and that the Company is relying in part upon
         the truth and accuracy of, and such Purchaser's compliance with, the
         representations, warranties, agreements, acknowledgments and
         understandings of such Purchaser set forth herein and on the signature
         page hereto in order to determine the availability of such exemptions
         and the eligibility of such Purchaser to acquire the Common Stock.

                  (f) Information; Confidentiality. Such Purchaser and its
         advisors, if any, have been furnished with all publicly available
         materials relating to the business, finances and operations of the
         Company and such other publicly available materials relating to the
         offer and sale of the Shares as have been requested by such Purchaser.
         Such Purchaser and its advisors, if any, have been afforded the
         opportunity to ask questions of the Company. Neither such inquiries nor
         any other due diligence investigations conducted by such Purchaser or
         its advisors, if any, or its representatives shall modify, amend or
         affect such Purchaser's right to rely on the Company's representations
         and warranties contained herein. Such Purchaser understands that its
         investment in the Shares involves a high degree of risk. Such Purchaser
         has sought such accounting, legal and tax advice as it has considered
         necessary to make an informed investment decision with respect to its
         acquisition of the Shares.

                  (g) No Governmental Review. Such Purchaser understands that no
         United States federal or state agency or any other government or
         governmental agency has passed on or made any recommendation or
         endorsement of the Shares or the fairness or suitability of the
         investment in the Shares nor have such authorities passed upon or
         endorsed the merits of the offering of the Shares.

                  (h) Experience of Such Purchaser. Such Purchaser, either alone
         or together with its representatives, has such knowledge,
         sophistication and experience in business and financial matters,
         including investing in biotechnology companies, so as to be capable of
         evaluating the merits and risks of the prospective investment in the
         Shares, and has so evaluated the merits and risks of such investment.
         Such Purchaser is able to bear the economic risk of an investment in
         the Shares and, at the present time, is able to afford a complete loss
         of such investment.

                  (i) Sales; Short Selling. From and after the date that the
         Purchaser receives any information about the existence of the Offering,
         and through the Closing Date, the Purchaser has not and shall not,
         directly or indirectly, sell shares of the Common Stock in the open
         Trading Market or

                                       8
<PAGE>
         elsewhere, and has not and shall not directly or indirectly, through
         related parties, affiliates or otherwise sell "short" or "short against
         the box" (as those terms are generally understood) any equity security
         of the Company.

                  (j) Information Regarding Purchaser. Purchaser has provided
         the Company with true, complete, and correct information regarding all
         applicable items set forth in the on the signature page to this
         Agreement.

         The Company acknowledges and agrees that each Purchaser does not make
or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in this
Section 3.2.

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

         4.1 Transfer Restrictions.

                  (a) The Securities may only be disposed of in compliance with
         state and federal securities laws. In connection with any transfer of
         Securities other than (i) pursuant to an effective registration
         statement, (ii) to the Company, or (iii) to an Affiliate of a
         Purchaser, the Company may require the transferor thereof to provide to
         the Company an opinion of counsel selected by the transferor, the form
         and substance of which opinion shall be reasonably satisfactory to the
         Company, to the effect that such transfer does not require registration
         of such transferred Securities under the Securities Act. As a condition
         of transfer, any such transferee shall agree in writing to be bound by
         the terms of this Agreement and shall have the rights of a Purchaser
         under this Agreement and the Registration Rights Agreement.

                  (b) The Purchasers agree to the imprinting of a legend on any
         of the Securities in the following form:

                           THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
                           SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
                           COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
                           FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
                           AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
                           MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
                           EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
                           ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN
                           A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
                           REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
                           WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
                           A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
                           EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
                           ACCEPTABLE TO THE COMPANY.

                  (c) Following the Closing Date, upon request from any of the
         Purchasers, subject to applicable securities laws and approval of
         Company Counsel, which will not be unreasonably withheld, the Company
         will remove any of the restrictive legends (including the legend set
         forth in Section 4.1(b)).

         4.2 Furnishing of Information. During the Effectiveness Period (as such
term is defined in the Registration Rights Agreement), the Company covenants to
use its commercially reasonable efforts to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act. During the Effectiveness Period, the Company further covenants to
use its commercially reasonable efforts to take such further action as any
Purchaser may reasonably request, all to the extent required from time to time
to enable such Person to sell such Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144.

                                       9
<PAGE>
         4.3 Integration. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Purchasers or that would be
integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market.

         4.4 Securities Laws Disclosure; Publicity. The Company shall, by 9:30
a.m., New York City time, on the Business Day following the Closing Date, issue
a press release to be disseminated in the public domain describing the terms of
the transactions contemplated by the Transaction Documents. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except (i) to the extent such Purchaser purchases in excess of
200,000 Shares in the Offering, (ii) as required by federal securities law or
the Securities and Exchange Commission in connection with the registration
statement contemplated by the Registration Rights Agreement, and (iii) to the
extent such disclosure is required by law or Trading Market regulations, in
which case the Company shall provide the Purchasers with prior notice of such
disclosure permitted under subclause (ii) or (iii).

         4.5 Shareholders Rights Plan. No claim will be made or enforced by the
Company or any other Person that any Purchaser is an "Acquiring Person" under
any shareholders rights plan or similar plan or arrangement in effect or
hereafter adopted by the Company, or that any Purchaser could be deemed to
trigger the provisions of any such plan or arrangement, in each case solely by
virtue of receiving Securities under the Transaction Documents or under any
other agreement between the Company and the Purchasers.

         4.6 Reservation of Common Stock. As of the date hereof, the Company has
reserved and the Company shall continue to reserve and keep available at all
times, free of preemptive rights, a sufficient number of shares of Common Stock
for the purpose of enabling the Company to issue Shares pursuant to this
Agreement.

         4.7 Listing of Common Stock. The Company hereby agrees to use
commercially reasonable efforts to maintain the listing of the Common Stock on
the Trading Market, and as soon as reasonably practicable following the Closing
to list the applicable Shares on the Trading Market. The Company further agrees,
if the Company applies to have the Common Stock traded on any other Trading
Market, it will include in such application the Shares, and will take such other
action as is necessary or desirable in the opinion of the Purchasers to cause
the Shares to be listed on such other Trading Market as promptly as possible.
The Company will take all action reasonably necessary to continue the listing
and trading of its Common Stock on a Trading Market and will comply in all
respects with the Company's reporting, filing and other obligations under the
bylaws or rules of the Trading Market.

         4.8 Subsequent Financings Prior to Effective Date. From the date hereof
until after the Effective Date, other than as contemplated by this Agreement,
neither the Company nor any Subsidiary shall issue or sell any Common Stock or
Common Stock Equivalents, excluding the issuance of securities issued upon the
exercise of currently outstanding options and warrants.

         4.9 Non-Public Information. The Company covenants and agrees that
neither it nor any other Person acting on its behalf will provide any Purchaser
or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto such Purchaser
shall have executed a written agreement regarding the confidentiality and use of
such information. The Company understands and confirms that each Purchaser shall
be relying on the foregoing representations in effecting transactions in
securities of the Company.

                                       10
<PAGE>
                                   ARTICLE V.
                                  MISCELLANEOUS

         5.1 Fees and Expenses. Except as set forth in Section 3.1(i), each
party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to
the negotiation, preparation, execution, delivery and performance of this
Agreement. The Company shall pay all stamp and other taxes and duties levied in
connection with the sale of the Securities.

         5.2 Entire Agreement. The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

         5.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
specified on the signature pages attached hereto prior to 6:30 p.m. (New York
City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number on the signature pages attached hereto on a day that is not a
Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c)
the Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and
communications shall be as set forth on the signature pages attached hereto.

         5.5 Amendments; Waivers. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment,
by the Company and each Purchaser or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise any right hereunder in
any manner impair the exercise of any such right.

         5.6 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

         5.7 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Purchaser. Any Purchaser may assign
any or all of its rights under this Agreement to any Person, provided such
transferee agrees in writing to be bound, with respect to the transferred
Securities, by the provisions hereof that apply to the "Purchasers."

         5.8 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.1.

        5.9 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and
any other Transaction Documents (whether brought against a party hereto or its
respective affiliates, directors, officers, shareholders, employees or agents)
shall be commenced exclusively in the state or federal courts sitting in the
City of New York. Each party hereto hereby irrevocably submits to the
jurisdiction of the state and federal courts sitting in the City

                                       11
<PAGE>
of New York, New York, exclusive of all other jurisdictions, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. If either party shall commence an
action or proceeding to enforce any provisions of a Transaction Document, then
the prevailing party in such action or proceeding shall be reimbursed by the
other party for its attorneys fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding.

         5.10 Survival. The representations, warranties, agreements and
covenants contained herein shall survive the Closing and delivery of the Shares.

         5.11 Execution. This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

         5.12 Severability. If any provision of this Agreement is held to be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

         5.13 Replacement of Securities. If any certificate or instrument
evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

         5.14 Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser under any Transaction Document. Nothing contained herein or in any
Transaction Document, and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Document. Each
Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement or out of
the other Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such
purpose. Each Purchaser has been represented by its own separate legal counsel
in their review and negotiation of the Transaction Documents.

                            (Signature Page Follows)

                                       12
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

KERYX BIOPHARMACEUTICALS, INC.                  Address for Notice:
                                                750 Lexington Avenue, 26th Floor
                                                New York, NY 10022
                                                Attn: Ron Bentsur
                                                Tel: (212) 531-5965
                                                Fax: (212) 531-5961

/s/ Michael S. Weiss
--------------------------------
Name:  Michael S. Weiss
Title: Chairman and Chief Executive Officer

With copy to (which shall not constitute notice):

Alston & Bird LLP
90 Park Avenue
New York, New York 10016
Attn: Mark F. McElreath
Tel: (212) 210-9400
Fax: (212) 210-9444

                           (Signature Page Continues)

                                       13

<PAGE>
           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: ADAGE CAPITAL MANAGEMENT, L.P.

                                          /s/ Phill Goss
                                          ----------------------------------
                                          Name:  Phill Goss
                                          Title: Managing Director

                                          Date: February 12, 2004

<TABLE>
<S>                               <C>                            <C>
     250,000                      $                              $
------------------                ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       14
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       15
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: ATLAS EQUITY I, LTD.

                                          /s/ Taylor J. O'Malley
                                          ------------------------
                                          Name:  Taylor J. O'Malley
                                          Title: Manager

                                          Date: February 13, 2004

<TABLE>
<S>                               <C>                            <C>
    200,000                       $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       16
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       17
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: DEERFIELD INTERNATIONAL LIMITED

                                          /s/ Arnold Snider
                                          -----------------------------------
                                          Name:  Arnold Snider
                                          Title: President

                                          Date: February 13, 2004

<TABLE>
<S>                               <C>                            <C>
    490,000                       $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       18
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       19
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: DEERFIELD PARTNERS, L.P.

                                          /s/ Arnold Snider
                                          -----------------------------------
                                          Name:  Arnold Snider
                                          Title: President

                                          Date: February 13, 2004

<TABLE>
<S>                               <C>                            <C>
    510,000                       $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       20
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       21
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          MAVERICK FUND II, LTD.
                                          BY: MAVERICK CAPITAL, LTD.,
                                              ITS INVESTMENT MANAGER

                                          /s/ Michelle Perrin
                                          ----------------------
                                          Name:  Michelle Perrin
                                          Title: Director of Fund Accounting

                                          Date: February 12, 2004

<TABLE>
<S>                               <C>                            <C>
     172,700                      $                              $
------------------                ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       22
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       23
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          MAVERICK FUND, L.D.C.
                                          BY: MAVERICK CAPITAL, LTD.,
                                              ITS INVESTMENT MANAGER

                                          /s/ Michelle Perrin
                                          ----------------------
                                          Name:  Michelle Perrin
                                          Title: Director of Fund Accounting

                                          Date: February 12, 2004

<TABLE>
<S>                               <C>                            <C>
     569,700                      $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       24
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       25
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          MAVERICK FUND USA, LTD.
                                          BY: MAVERICK CAPITAL LTD.,
                                              ITS INVESTMENT MANAGER

                                          /s/ Michelle Perrin
                                          -----------------------
                                          Name:  Michelle Perrin
                                          Title: Director of Fund Accounting

                                          Date: February 12, 2004

<TABLE>
<S>                               <C>                            <C>
    257,600                       $                              $
-----------------                 ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       26
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       27
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: S.A.C. HEALTHCO FUND, LLC

                                          /s/ Brian Cohn
                                          -----------------------------
                                          Name:  Brian Cohn
                                          Title: President

                                          Date: February 13, 2004

<TABLE>
<S>                               <C>                            <C>
    200,000                       $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       28
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       29
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: SONOSTAR VENTURES, LLC

                                          /s/ Gregory F. Kiernan
                                          --------------------------
                                          Name:  Gregory F. Kiernan
                                          Title: President and Chief Executive
                                                 Officer

                                          Date: February 12, 2004

<TABLE>
<S>                               <C>                            <C>
    50,000                        $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       30
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       31
<PAGE>

           [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                          BY: T. ROWE PRICE ASSOCIATES, INC.

                                          /s/ Jay Markowitz
                                          --------------------------
                                          Name:  Jay Markowitz
                                          Title: Vice President

                                          Date: February 13, 2004

<TABLE>
<S>                               <C>                            <C>
     500,000                      $                              $
----------------                  ---------------                ===============
NUMBER OF SHARES                  PRICE PER SHARE                TOTAL PURCHASE
OF COMMON STOCK                                                           PRICE
SUBSCRIBED FOR
</TABLE>

The above-signed Purchaser hereby provides the following information to the
Company:

      1. Please provide the following information regarding the Purchaser:

              PURCHASER NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              TELEPHONE: (     ) ______-________

              FACSIMILE: (     ) ______-_________

              EMAIL: _______________________

              TAX ID #:_____________________

      2. If different from the information provided in Item 1 above, please
provide the exact name that the Purchaser's Shares are to be registered in (this
is the name that will appear on the stock certificate(s)). The Purchaser may use
a nominee name if appropriate:

              REGISTERED HOLDER OF THE SHARES NAME AND ADDRESS:

              ----------------------------------------------

              ----------------------------------------------

              ----------------------------------------------

              FACSIMILE: (     ) ______-_________

                                       32
<PAGE>

      3. Please describe the relationship between the Purchaser of the Shares
and the Registered Holder of the Shares listed in response to Item 2 above, if
different:

--------------------------------------------------------------------------------

      4. If different from the information provided in Item 1 above, please
provide the mailing address of the Registered Holder of the Shares listed in
response to Item 2 above:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      5. If different from the information provided above, please provide the
number of shares of Common Stock beneficially owned (as determined in accordance
with SEC Rule 13d-3 under the Exchange Act) by the Purchaser immediately after
Closing. Explain the nature of such beneficial ownership, including shares of
Common Stock not held of record by the Purchaser. Disclose the details of any
rights to acquire shares of Common Stock.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      6. Describe any position, office or other material relationship within the
past three years that the Purchaser has, or has had, with the Company or its
Affiliates other than as disclosed in the Prospectus included in the
Registration Statement? If none, please state "Not Applicable."

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      PLEASE NOTE THAT IT IS THE PURCHASER'S OBLIGATION TO ADVISE THE COMPANY
PROMPTLY IF ANY OF THE FOREGOING INFORMATION CHANGES DURING THE EFFECTIVENESS OF
THE REGISTRATION STATEMENT (EXCEPT DUE TO SALES OF SHARES OF COMMON STOCK
PURSUANT THERETO).

                                       33

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