Document:

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                                                                  EXECUTION COPY

                              REDEMPTION AGREEMENT

      THIS REDEMPTION AGREEMENT (this "Agreement") is made as of April 28, 2000,
by and among PHILIPS INTERNATIONAL REALTY, L.P., a Delaware limited partnership,
having an office at 417 Fifth Avenue, Third Floor, New York, New York 10016
("Operating Partnership"), and SL FLORIDA LLC, a Delaware limited liability
company, having an office at c/o Philips International Realty Corp., 417 Fifth
Avenue, Third Floor, New York, New York 10016 ("Company").

                               W I T N E S S E T H

      WHEREAS, Palm Mile Corp., a New York corporation ("PMC") and Sheila
Levine, an individual ("Levine"), are the sole members of Company;

      WHEREAS, as of August 8, 1997, PMC and PL Palm Springs, L.P., a Delaware
limited partnership ("PL Palm Springs") in which Levine owned a 9.7% limited
partnership interest, had owned, respectively, a 5% general partnership interest
and 51.5% limited partnership interest in Palm Springs Mile Associates, Ltd., a
Florida limited partnership ("Palm Springs Ltd");

      WHEREAS, as of December 31, 1997, PMC and PL Palm Springs had contributed
and/or assigned their respective interests in Palm Springs Ltd to the Operating
Partnership in exchange for, respectively, 58,425 Operating Partnership units
and 601,779 Operating Partnership units;

      WHEREAS, thereafter, PL Palm Springs distributed all of its 601,779
Operating Partnership units to its partners, with 9.7% of such units, or 58,372
in total, being distributed to Levine;

      WHEREAS, PMC and Levine currently own, respectively, 58,425 Operating
Partnership units (the "PMC Units") and 137,125 Operating Partnership units (the
"Levine Units");

      WHEREAS, prior to the redemption described in Section 1 below, PMC and
Levine shall contribute and/or assign all of the PMC Units and Levine Units
(together, the "OP Units") to the Company;

      WHEREAS, among those partnership and membership interests in various
partnerships and limited liability companies which own real properties that it
currently owns (individually, a "Property Partnership" and collectively, the
"Property Partnerships"), Operating Partnership currently owns a 99.99% limited
partnership interest (the "Palm Springs Ltd Interest") in Palm Springs Ltd;

      WHEREAS, Philips Palm Springs Sub-VIII, Inc., a Delaware corporation
("Philips Sub-VIII") and a wholly-owned subsidiary of Philips International
Realty Corp., a Maryland corporation ("Philips Corp."), owns a .01% general
partnership interest in Palm Springs Ltd;
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      WHEREAS, Palm Springs Ltd owns the undivided fee interest in the four
parcels comprising that certain real property located in Dade County, Florida as
more particularly described on Schedule A annexed hereto (the "Property");

      WHEREAS, prior to the Closing Date, Operating Partnership and Philips
Corp. shall have caused Palm Springs Ltd to have contributed, in fee, undivided
interests in two of the parcels comprising the Property referred to as
Components 1 and 2 ("Shared Parcels") to two (2) separate limited liability
companies (each, a "Palm Springs LLC" and, together, the "Palm Springs LLCs")
all of the interests of each of which shall be distributed to Allen Pilevsky and
Fred Pilevsky;

      WHEREAS, prior to the Closing Date, the Palm Springs LLCs and Palm Springs
Ltd shall have entered into a tenancy in common agreement ("Tenancy Agreement")
with respect to the Shared Parcels, which agreement shall be in form and
substance reasonably acceptable to the parties;

      WHEREAS, immediately prior to the redemption described in Section 1 below,
the portion of the Property owned by Palm Springs Ltd shall have an equity value
of not less than $31,679,081 and shall be subject to an amount of debt not less
than $58,229,728 which debt shall have such terms and conditions no less
favorable to Palm Springs, Ltd than the terms on conditions set forth on
Schedule F attached hereto;

      WHEREAS, in the manner set forth herein, the Operating Partnership will
redeem all of the OP Units that the Company shall own and, in exchange therefor,
the Operating Partnership shall distribute to the Company a 10% partnership
interest in Palm Springs Ltd, as more particularly set forth herein;

      WHEREAS, simultaneously with the redemption described in Section 1 below,
the Operating Partnership shall also distribute a 90% limited partnership
interest in Palm Springs Ltd to Philip Pilevsky in redemption of all of his
units in Operating Partnership, and Palm Springs Ltd shall distribute to Philips
Sub-VIII an amount of cash to Philips Sub-VIII equal to the equity value of its
 .01% general partnership interest in Palm Spring Ltd in complete redemption of
such interest; and

      WHEREAS, upon its receipt of its Assigned Interest (as defined below),
Company shall become the general partner of Palm Springs Ltd; and

      NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and the mutual
covenants and agreements hereinafter set forth, and other good and valuable
consideration, the mutual receipt and legal sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

1.    Redemption. At the Closing (as defined in Section 2), Operating
      Partnership hereby agrees to redeem, and Company hereby agrees to have
      redeemed, all of the OP Units

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      which it shall own on the Closing Date free and clear of any and all liens
      or other encumbrances, in exchange for which the Operating Partnership
      shall distribute and/or assign to Company a ten percent (10%) general
      partnership interest in Palm Springs Ltd ("Assigned Interest") having an
      equity value of not less than $3,568,788 and, in connection therewith,
      Palm Springs Ltd shall have sufficient debt outstanding that will be
      allocated to Company (including, if necessary, by Palm Springs Ltd having
      made available to Company sufficient debt for it to guarantee or indemnify
      through the execution of one or more "bottom dollar" guarantees or
      indemnities) so that Company shall not recognize any gain or income as a
      result of the distribution and/or assignment of the Assigned Interest.

2.    Closing. The consummation of the transactions contemplated by this
      Agreement (the "Closing") shall take place at the offices of Pryor Cashman
      Sherman & Flynn LLP, 410 Park Avenue, 10th Floor, New York, New York
      10022, on that date and at the time prescribed for such Closing as set
      forth in Section 6.2 of the Group B Agreement (as defined below) (the
      "Closing Date").

3.    Representations, Warranties and Covenants.

      3.01  Operating Partnership hereby represents and warrants to Company as
            follows:

            (a)   Operating Partnership is a duly formed and validly existing
                  limited partnership organized and in good standing under the
                  laws of the State of Delaware, and Palm Springs Ltd is a duly
                  formed and validly existing limited partnership organized and
                  in good standing under the laws of the State of Florida.

            (b)   Operating Partnership has or shall have by the Closing Date
                  the full legal right, power and authority to execute and
                  deliver this Agreement and Operating Partnership Documents (as
                  defined in Section 4.01) to consummate the transactions
                  contemplated hereby and to perform its obligations hereunder
                  and under Operating Partnership Documents.

            (c)   This Agreement and Operating Partnership Documents do not and
                  will not (I) contravene any provision of the Amended and
                  Restated Limited Partnership Agreement of Operating
                  Partnership ("Operating Partnership Agreement"), the Amended
                  and Restated Limited Partnership Agreement of Palm Springs
                  Mile Associates, Ltd ("Palm Springs Ltd Partnership
                  Agreement"), the operating agreement, if any, of any of the
                  Palms Springs LLCs (each of which, a "Palm Springs LLC
                  Agreement"), the Tenancy Agreement or any partnership or
                  operating agreement of any of their respective subsidiaries or
                  affiliates, or any judgment, order, decree, writ or injunction
                  issued against Operating Partnership, Palm Springs Ltd, any
                  Palms Springs LLC or any of their respective subsidiaries or
                  affiliates; or (II) materially violate a material provision of
                  any law or governmental

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                  ordinance, rule, regulation, order or requirement
                  (collectively, "Laws") to which Operating Partnership, Palm
                  Springs Ltd, any Palm Springs LLC or any of their respective
                  subsidiaries or affiliates is or will be subject, except such
                  violations as would not have a material adverse effect on any
                  of the transactions contemplated hereby if finally determined
                  adversely to such party. The consummation of the transactions
                  contemplated hereby will not result in a breach or constitute
                  a default or event of default by Operating Partnership, Palm
                  Springs Ltd, any Palm Springs LLC or any of their respective
                  subsidiaries or affiliates under any agreement to which any of
                  them or any of their assets are or will be subject or bound
                  (including, without limitation, Operating Partnership
                  Agreement, the Tenancy Agreement, any Palm Springs LLC
                  Agreement or any of the Property) and will not result in a
                  violation of any Laws to which Operating Partnership, Palm
                  Springs Ltd, any Palm Springs LLC or any of their respective
                  subsidiaries or affiliates is or will be subject, except such
                  violations as would not have a material adverse effect on the
                  transaction contemplated hereby if finally determined
                  adversely to Operating Partnership, Palm Springs Ltd, any Palm
                  Springs LLC or any of their respective subsidiaries or
                  affiliates.

            (d)   Operating Partnership owns the Assigned Interest free and
                  clear of any and all liens and encumbrances.

            (e)   Upon Operating Partnership's delivery of the assignment of the
                  Assigned Interest to Company in the manner set forth on
                  Schedule C (collectively, the "Assignment") and all of the
                  other Operating Partnership Documents, good and valid title to
                  the Assigned Interest will pass to Company.

            (f)   There are no statutory or contractual preemptive rights,
                  rights of refusal or options with respect to the transfer
                  and/or assignment of any portion of the Assigned Interest.

            (g)   No representation or warranty by Operating Partnership in this
                  Agreement and no statement contained herein or in any
                  document, certificate, or other writing furnished or to be
                  furnished by Operating Partnership to Company pursuant to the
                  provisions hereof or in connection with the transactions
                  contemplated hereby contains or will contain any untrue
                  statement of material fact or omits or will omit to state any
                  material fact necessary in order to make the statements herein
                  or therein not misleading. Operating Partnership has disclosed
                  to Company all facts known or reasonably available to
                  Operating Partnership that are material to the transactions
                  contemplated herein.

            (h)   Immediately prior to the Closing Date, Palm Springs Ltd will
                  own fee title to the Property which shall have an equity value
                  of not less than

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                  $31,679,081 and shall be subject to an amount of debt not less
                  than $58,229,728 and which debt shall have such terms and
                  conditions no less favorable to Palm Springs Ltd then the
                  terms and conditions set forth on Schedule F.

      3.02  Company hereby represents and warrants to the Operating Partnership
            as follows:

            (a)   Company is a duly formed and validly existing limited
                  liability company organized and in good standing under the
                  laws of the State of Delaware, and this Agreement and Company
                  Documents do not and will not contravene any provision of its
                  operating agreement.

            (b)   Company has the full legal right, power and authority to
                  execute and deliver this Agreement and Company Documents, to
                  consummate the transactions contemplated hereby, and to
                  perform its obligations hereunder and under Company Documents.

            (c)   This Agreement and Company Documents do not and will not
                  contravene any judgment, order, decree, writ or injunction
                  issued against Company, or materially violate a material
                  provision of any Law applicable to Company, except such
                  violations as would not have a material adverse effect on any
                  of the transactions contemplated hereby if finally determined
                  adversely to Company. Company hereby represents and warrants
                  that the consummation of the transactions contemplated hereby
                  will not result in a breach or constitute a default or event
                  of default by Company under any agreement to which Company or
                  any of its assets is subject or bound and will not result in a
                  violation of any Laws applicable to Company, except such
                  violations as would not have a material adverse effect on the
                  transactions contemplated hereby if finally determined
                  adversely to Company.

            (d)   Company will own on the Closing Date the OP Units free and
                  clear of any and all liens and encumbrances.

            (e)   Company and its members have had the opportunity to ask
                  questions and receive financial information concerning the
                  business and value of Palm Springs Ltd, the Assigned Interest
                  and the Property and are sophisticated in business financial
                  matters and understands the benefits and risks of the
                  investment decision contemplated hereby. Company and its
                  members accept and agree that the Assigned Interest to be
                  received hereunder represents fair value for the OP Units to
                  be exchanged hereunder. Company and its members acknowledge
                  that, were this transaction not to occur, the value in the
                  future of the Assigned Interest and the OP Units would be
                  different than their respective value today.

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            (f)   No representation or warranty by Company in this Agreement and
                  no statement contained herein or in any document, certificate,
                  or other writing furnished or to be furnished by Company to
                  Operating Partnership pursuant to the provisions hereof or in
                  connection with the transactions contemplated hereby contains
                  or will contain any untrue statement of material fact or omits
                  or will omit to state any material fact necessary in order to
                  make the statements herein or therein not misleading. Company
                  has disclosed to Operating Partnership all facts known or
                  reasonably available to Company that are material to the
                  transactions contemplated herein.

      3.03  Between the date first written above and the Closing Date, (A) Palm
            Springs Ltd shall not enter into, renew, modify, terminate or
            otherwise amend any lease or other document affecting the Property
            without the prior consent of Company in each instance, which consent
            shall not be unreasonably withheld or delayed and which consent (or
            denial of consent in which case Company shall also include the
            reasons for such denial) shall be furnished, in writing, by Company
            to Palm Springs Ltd by no later than five days following Company's
            receipt of written notice of Palm Springs Ltd's desire to enter
            into, renew, modify, terminate or otherwise amend any lease or other
            document affecting the Property; Company's consent shall be deemed
            to have been granted if Company fails to furnish notice, in writing,
            to Palm Springs Ltd of Company's denial of consent (and the reasons
            for such denial) by the end of such five-day period; (B) Palm
            Springs Ltd shall not enter into any property operating maintenance
            or service or other contracts requiring more than thirty (30) days
            notice to terminate; and (C) Palm Springs Ltd shall continue to
            maintain and repair the Property as in its normal course of
            business.

4.    Conditions Precedent to Closing.

      4.01  Operating Partnership's obligation under this Agreement to
            consummate the transactions contemplated herein is subject to the
            fulfillment of each of the following conditions.

            (a)   The representations and warranties of Company contained herein
                  shall be true, accurate and correct in all material respects
                  as of the Closing Date, except to the extent they expressly
                  relate only to an earlier date.

            (b)   All consents and approvals of governmental authorities and
                  parties to agreements to which Company is a party or by which
                  any asset owned by Company is bound that are required with
                  respect to the consummation of the transactions contemplated
                  by this Agreement shall have been obtained and copies thereof
                  shall have been delivered to Operating Partnership at or prior
                  to the Closing.

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            (c)   On or prior to the Closing Date, (i) Company shall not have
                  applied for or consented to the appointment of a receiver,
                  trustee or liquidator for itself or any of its assets unless
                  the same shall have been discharged prior to the Closing Date,
                  and no such receiver, liquidator or trustee shall have
                  otherwise been appointed, unless same shall have been
                  discharged prior to the Closing Date, (ii) Company shall not
                  have admitted in writing an inability to pay its debts as they
                  mature, (iii) Company shall not have made a general assignment
                  for the benefit of creditors, (iv) Company shall not have been
                  adjudicated a bankrupt or insolvent, or had a petition for
                  reorganization granted with respect to Company, (v) Company
                  shall not have filed a voluntary petition seeking
                  reorganization or an arrangement with creditors or taken
                  advantage of any bankruptcy, reorganization, insolvency,
                  readjustment or debt, dissolution or liquidation law or
                  statute, or filed an answer admitting the material allegations
                  of a petition filed against it in any proceeding under any
                  such law or statute, or had any petition filed against it in
                  any proceeding under any such law or statute unless the same
                  shall have been dismissed, canceled or terminated prior to the
                  Closing Date.

            (d)   Philips Corp. shall have received shareholder approval for the
                  transactions hereunder.

            (e)   This Agreement shall not have been terminated, if expressly
                  permitted herein.

            (f)   There shall be no litigation or administrative agency or other
                  governmental proceeding of any kind whatsoever, pending or
                  threatened, which would materially and adversely affect the OP
                  Units.

            (g)   The closing of title (the "Group A Closing") under and
                  pursuant to that certain Purchase and Sale Agreement (the
                  "Group A Agreement") dated April 28, 2000, by and among Munsey
                  Park Associates, LLC, North Shore Triangle, LLC, Philips
                  Yonkers, LLC, Philips Henry, LLC, Philips Shopping Center
                  Fund, L.P. and Philips Lake Mary Associates, L.P.,
                  collectively as Seller, and Kimco Income Operating
                  Partnership, L.P., as Purchaser, for each Property or Ground
                  Lease (each as defined in the Group A Agreement) shall have
                  occurred or shall have been excluded or postponed pursuant to
                  the terms of the Group A Agreement.

            (h)   While the closing of title (the "Group B Closing") under and
                  pursuant to that certain Asset Contribution, Purchase and Sale
                  Agreement dated April 28, 2000 (the "Group B Agreement"), by
                  and among Operating Partnership, Philips Corp., Certain
                  Affiliated Parties Signatory Thereto, KIR Acquisition, LLC,
                  and Kimco Income Operating Partnership, L.P., shall not be
                  scheduled to occur, and shall not occur, until at least one
                  day

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                  following the Closing Date, all of the material conditions to
                  the Group B Closing required to have been satisfied as of the
                  day immediately prior to the Closing Date shall have been
                  satisfied or waived.

      4.02  Company's obligation under this Agreement to consummate the
            transactions contemplated herein is subject to the fulfillment of
            each of the following conditions.

            (a)   The representations and warranties of the Operating
                  Partnership contained herein shall be true, accurate and
                  correct in all material respects as of the Closing Date,
                  except to the extent they relate only to an earlier date.

            (b)   All consents and approvals of governmental authorities and
                  parties to agreements to which Operating Partnership, Palm
                  Springs Ltd, Philips Sub-VIII or any Property Partnership is a
                  party or by which any asset of Operating Partnership, Palm
                  Springs Ltd, Philips Sub-VIII or any Property Partnership is
                  bound (including any of the Property) that are required with
                  respect to the consummation of the transactions contemplated
                  by this Agreement shall have been obtained and copies thereof
                  shall have been delivered to Company at or prior to the
                  Closing.

            (c)   On or prior to Closing Date, (i) neither Operating
                  Partnership, Palm Springs Ltd, Philips Sub-VIII nor any
                  Property Partnership shall have applied for or consented to
                  the appointment of a receiver, trustee or liquidator for
                  itself or any of its assets unless the same shall have been
                  discharged prior to the Closing Date, and no such receiver,
                  liquidator or trustee shall have otherwise been appointed,
                  unless same shall have been discharged prior to the Closing
                  Date, (ii) neither Operating Partnership, Palm Springs Ltd,
                  Philips Sub-VIII nor any Property Partnership shall have
                  admitted in writing an inability to pay its debts as they
                  mature, (iii) neither Operating Partnership, Palm Springs Ltd,
                  Philips Sub-VIII nor any Property Partnership shall have made
                  a general assignment for the benefit of creditors, (iv)
                  neither Operating Partnership, Palm Springs Ltd, Philips
                  Sub-VIII nor any Property Partnership shall have been
                  adjudicated a bankrupt or insolvent, or had a petition for
                  reorganization granted with respect to itself, (v) neither
                  Operating Partnership, Palm Springs Ltd, Philips Sub-VIII nor
                  any Property Partnership shall have filed a voluntary petition
                  seeking reorganization or an arrangement with creditors or
                  taken advantage of any bankruptcy, reorganization, insolvency,
                  readjustment or debt, dissolution or liquidation law or
                  statute, or filed an answer admitting the material allegations
                  of a petition filed against it in any proceedings under any
                  such law or statute, or had any petition filed against it in
                  any proceeding under any of such law or statute unless the
                  same shall have been dismissed, canceled or terminated prior
                  to the Closing Date.

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            (d)   This Agreement shall not have been terminated, if expressly
                  permitted herein.

            (e)   There shall be no litigation or administrative agency or other
                  governmental proceeding of any kind whatsoever, pending or
                  threatened, which would materially and adversely affect Palm
                  Springs Ltd, any portion of the Assigned Interest or any of
                  the Property.

            (f)   While the Group B Closing shall not be scheduled to occur, and
                  shall not occur, until at least one day following the Closing
                  Date, all of the material conditions to the Group B Closing
                  required to have been satisfied as of the day immediately
                  prior to the Closing Date shall have been satisfied or waived.

            (g)   Immediately following the redemption described in Section 1
                  above, there shall be not less than $58,229,728 of debt
                  encumbering the Property, such debt shall have such terms and
                  conditions no less favorable to Palm Springs Ltd than the
                  terms and conditions set forth on Schedule F attached hereto,
                  and that Company shall be allocated a sufficient amount of
                  debt of Palm Springs Ltd (including, if necessary, Palm
                  Springs Ltd having made available to Company sufficient debt
                  for it to guarantee or indemnify through the execution of one
                  or more "bottom dollar" guarantees or indemnities) so that
                  Company shall not recognize any income as a result of the
                  distribution of the Assigned Interest to Company in redemption
                  of its OP Units.

            (h)   Immediately prior to the redemption described in Section 1
                  above, the Property shall have an equity value of at least
                  $31,679,081.

            (i)   Immediately prior to the redemption under Section 1 above, the
                  entire interest of Philips Sub-VIII in Palm Springs Ltd shall
                  have been redeemed for cash equal to the then equity value of
                  Philips Sub-VIII entire partnership interest in Palm Springs
                  Ltd and Philips Sub-VIII shall no longer be a partner of Palm
                  Springs Ltd.

5.    Delivery of Documents at Closing.

      5.01  Deliveries by Operating Partnership. Operating Partnership agrees to
            deliver (or cause to be delivered) to Company at the Closing the
            following agreements and documents ("Operating Partnership
            Documents"), all satisfactory in form and substance to Company:

            (a)   The Assignment, duly executed by Operating Partnership;

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            (b)   A certificate of good standing and/or subsistence, dated not
                  more than thirty (30) days prior to the Closing Date, issued
                  by the Secretary of State of the State of Delaware with
                  respect to Operating Partnership, the State of Maryland with
                  respect to Philips Corp. and the State of Florida with respect
                  to Palm Springs Ltd;

            (c)   Certified copy of a consent duly adopted by the general
                  partner of Operating Partnership authorizing the execution,
                  delivery and performance of this Agreement and of each of the
                  Operating Partnership Documents;

            (d)   General release from Operating Partnership and Philips Corp in
                  the form attached as Schedule D, duly executed by Operating
                  Partnership and Philips Corp.; and

            (e)   Such other consents, documents and instruments as may be
                  reasonably required to effectuate the terms of this Agreement
                  and to comply with the terms hereof.

      5.02  Deliveries by Company. Company agrees to deliver (or cause to be
            delivered) to Operating Partnership at the Closing the following
            agreements and documents ("Company Documents"), all satisfactory in
            form and substance to Operating Partnership:

            (a)   The Assignment, duly executed by Company;

            (b)   A certificate of good standing and/or subsistence, dated not
                  more than thirty (30) days prior to the Closing, issued by the
                  Secretary of State of the State of Delaware;

            (c)   Certified copies of a resolution and unanimous consent duly
                  adopted by all of the members and managers, if any, of Company
                  authorizing the execution, delivery and performance by Company
                  of this Agreement and each of Company Documents;

            (d)   General release from Company, PMC and Levine in the form
                  attached as Schedule E, duly executed by Company, PMC and
                  Levine; and

            (e)   Such other consents, documents and instruments as may be
                  reasonably required to effectuate the terms of this Agreement
                  and to comply with the terms hereof.

      5.03  Further Assurances. After the Closing, at the request of either
            party hereto, and without further conditions or consideration, each
            party shall execute and deliver from time to time such other
            instruments, documents, agreements and/or take such other actions as
            the other party may reasonably request in order to more

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            effectively consummate the transactions contemplated herein. This
            Section 5.03 shall survive the Closing.

6. Remedies. If any party hereto shall be in default of or breach any of its
respective obligations hereunder, then each party shall have such rights or
remedies available at law and/or in equity, including, without limitation, the
right of specific performance.

7. Notices. All notices, requests, demands, consents or waivers and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given if delivered by (i) hand, (ii) facsimile (with
immediate confirmation), (iii) a nationally recognized overnight courier for
next business day delivery (charges prepaid), or (iv) certified or registered
mail, return receipt requested (postage prepaid):

               If to Operating Partnership, to:

                      Philips International Realty Corp.
                      417 Fifth Avenue, Third Floor
                      New York, New York 10016
                      Attention: Louis J. Petra
                      Facsimile: (212) 545-1355

               With a copy to:

                      Pryor Cashman Sherman & Flynn, LLP
                      410 Park Avenue
                      New York, New York 10022
                      Attention: Jonathan A. Bernstein, Esq.
                                 Stephen G. Epstein, Esq.
                      Facsimile: (212) 326-0806

               If to Company, as follows:

                      SL Florida LLC
                      c/o Philips International Realty Corp.
                      417 Fifth Avenue, Third Floor
                      New York, New York 10016
                      Attention: Sheila Levine
                      Facsimile: (212) 545-1355

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               With a copy to:

                      McDermott Will & Emery
                      50 Rockefeller Plaza
                      New York, New York 10020-1605
                      Attention: Keith M. Pattiz, Esq.
                      Facsimile: (212) 547-5444

      or, in each case, to such other person or address as any party shall
      furnish to the other parties in writing. Notices shall be deemed to be
      delivered upon receipt or rejection.

8.    Confidentiality.

      8.01  (a) Operating Partnership, on behalf of itself and its
            Representatives (as defined in Section 8.03(a)), agrees that, prior
            to the Closing, all information relating to this Agreement shall be
            kept strictly confidential by Operating Partnership and its
            Representatives and shall not, without the prior written consent of
            Company, be disclosed by Operating Partnership or its
            Representatives, in any manner whatsoever, in whole or in part, and
            will not be used by Operating Partnership or its Representatives,
            directly or indirectly, for any purpose other than evaluating the
            transactions contemplated hereunder. The provisions of this Section
            8.01(a) shall in no event apply to any information which is a matter
            of public record and shall not prevent Operating Partnership,
            Philips Corp. or any of their Affiliates or Representatives (i) from
            complying with any Law to which any of them is subject and (ii) from
            making any disclosure required to be made by any of them which any
            of them deem appropriate to the public, the shareholders of Philips
            Corp. or any other person or persons pursuant to any Securities and
            Exchange Law or other Law.

            (b) Company, on behalf of itself and its Representatives, agrees
            that, prior to the Closing, all information relating to this
            Agreement shall be kept strictly confidential by Company and its
            Representatives and shall not, without the prior written consent of
            the Operating Partnership, be disclosed by Company or its
            Representatives in any manner whatsoever, in whole or in part, and
            will not be used by Company or its Representatives, directly or
            indirectly, for any purpose other than evaluating the transactions
            contemplated hereunder. The provisions of this Section shall in no
            event apply to any information which is a matter of public record
            and shall not prevent Company or any of its Representatives from
            complying with any Law to which Company or any such Representative
            is subject.

      8.02  (a) Operating Partnership shall indemnify and hold Company and its
            Representatives harmless from and against any and all claims,
            demands, causes of action, losses, damages, liabilities, costs and
            expenses (including, without limitation, reasonable attorneys' fees
            and disbursements) suffered or incurred by

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            Company or any Affiliate of Company or any Representative of Company
            and arising out of or in connection with a breach by Operating
            Partnership or any Affiliate or Representative of Operating
            Partnership of any provision of this Section 8.

            (b) Company shall indemnify and hold the Operating Partnership and
            its Representatives harmless from and against any and all claims,
            demands, causes of action, losses, damages, liabilities, costs and
            expenses (including, without limitation, reasonable attorneys' fees
            and disbursements) suffered or incurred by the Operating
            Partnership, any Affiliate and arising out of or in connection with
            a breach by Company or any Affiliate or Representative of Company of
            any provision of this Section 8.

      8.03  As used in this Agreement, the following terms shall have the
            following meanings:

            (a) "Representative" shall mean, with respect to any person, any
            member, shareholder, partner, manager, director, officer, trustee,
            principal, agent, employee, contractor, broker, and/or other
            representative of such person, including, the attorneys, accountants
            and financial advisors of the Operating Partnership or Company.

            (b) "Affiliate" shall mean, with respect to any person, any direct
            or indirect subsidiary or other affiliate of such person.

      8.04  The provisions of this Section 8 shall survive the Closing.

9.    Miscellaneous.

      9.01  This Agreement shall not be altered, amended, changed, waived,
            terminated or otherwise modified in any respect or particular, and
            no consent or approval required pursuant to this Agreement shall be
            effective, unless the same shall be in writing and signed by or on
            behalf of the party to be affected thereby.

      9.02  This Agreement may not be assigned by any party hereto.

      9.03  This Agreement shall be binding upon, and shall inure to the benefit
            of, the parties hereto and to their respective heirs, executors,
            administrators, successors and permitted assigns.

      9.04  All prior statements, understandings, representations and agreements
            between the parties, oral or written, are superseded by and merged
            into this Agreement, which alone fully and completely expresses the
            agreement between them in connection with this transaction and which
            is entered into after full investigation, neither party relying upon
            any statement, understanding, representation or agreement

                                       13
<PAGE>

            made by the other not embodied in this Agreement. This Agreement
            shall be given a fair and reasonable construction in accordance with
            the intentions of the parties hereto, and without regard to or aid
            of canons requiring construction against the party drafting this
            Agreement.

      9.05  Except as otherwise expressly provided herein, all of the parties'
            representations, warranties, covenants and agreements herein shall
            merge into the documents and agreements executed at the Closing and
            shall not survive the Closing.

      9.06  No failure or delay of either party in the exercise of any right or
            remedy given to such party hereunder or the waiver by any party of
            any condition hereunder for its benefit (unless the time specified
            herein for exercise of such right or remedy has expired) shall
            constitute a waiver of any other or further right or remedy nor
            shall any single or partial exercise of any right or remedy preclude
            other or further exercise thereof or any other right or remedy. No
            waiver by any party of any breach hereunder or failure or refusal by
            any other party to comply with its obligations shall be deemed a
            waiver of any other or subsequent breach, failure or refusal to so
            comply.

      9.07  Neither this Agreement nor any memorandum thereof shall be recorded
            by either party hereto and any attempted recordation hereof shall be
            void and shall constitute a default under this Agreement.

      9.08  This Agreement may be executed in one or more counterparts, each of
            which so executed and delivered shall be deemed an original, but all
            of which taken together shall constitute but one and the same
            instrument.

      9.09  The caption headings in this Agreement are for convenience only and
            shall not be construed to modify, explain or alter any of the terms,
            covenants or conditions herein contained. Any and all schedules and
            exhibits referenced herein are by this reference hereby made a part
            hereof and incorporated herein.

      9.10  This Agreement shall be interpreted and enforced in accordance with
            the laws of the State of New York, without reference to its
            conflicts of law principles and, in the event of any dispute in
            connection with this Agreement, venue shall be in the federal and
            state courts located in New York County.

      9.11  If the last day of the period prescribed herein for the giving of
            any notice, election, consent, approval, demand, objection or
            request or the submission of any documents by any party hereunder
            shall fall on a Saturday, Sunday or any day observed as a public
            holiday by the federal government or the State of New York, then
            such period shall be deemed to be extended to the immediately
            following day which is not a Saturday, Sunday or such public
            holiday. The term "business day" as used in this Agreement shall
            mean any day other than Saturday, Sunday or any day observed as a
            public holiday by the federal government or the State of New York.

                                       14
<PAGE>

      9.12  Unless otherwise specified herein, for purposes of this Agreement
            (a) references to persons or parties include their permitted
            successors and assigns; (b) references to modifications or
            amendments shall in all events mean modifications and amendments;
            (c) references to statutes are to be construed as including all
            rules and regulations adopted pursuant to the statute referred to
            and all statutory provisions consolidating, amending or replacing
            the statute referred to; (d) references to agreements and other
            contractual instruments shall be deemed to include all subsequent
            amendments and other modifications thereto entered into from time to
            time after the date hereof; (e) the words "include" or "including",
            and words of similar import, shall be deemed to be followed by the
            words "but not limited to" or "without limitation"; (f) the words
            "hereto", "herein", "hereof' and "hereunder", and words of similar
            import, refer to this Agreement in its entirety; and (g) unless
            otherwise specified herein, all references to Sections are to
            Sections of this Agreement. Terms defined herein may be used in the
            singular or the plural; when used in the singular and preceded by
            "a", "an" or "any", such term shall be taken to indicated one or
            more members of the relevant class; and when used in the plural,
            such term shall be taken to indicate all members of the relevant
            class.

      9.13  If any provision of this Agreement shall be unenforceable or
            invalid, the same shall not affect the remaining provisions of this
            Agreement and to this end the provisions of this Agreement are
            intended to be and shall be severable.

      9.14  The parties hereto hereby waive trial by jury in any action,
            proceeding or counterclaim brought by either against the other on
            any matter arising out of or in any way connected with this
            Agreement.

      9.15  This Agreement shall not be binding upon any party unless and until
            each of the parties shall have executed and delivered a fully
            executed original of this Agreement to the other parties.

      9.16  All schedules attached hereto are hereby incorporated herein by
            reference and made a part hereof.

      9.17  In the event that any party hereto brings an action or proceeding
            for a declaration of the rights of the parties under this Agreement,
            for injunctive relief, or for an alleged breach or default of this
            Agreement, or any other action arising out of this Agreement or the
            transactions contemplated hereby, the prevailing party in any such
            action shall be entitled to an award of reasonable attorneys' fees,
            disbursements and any court costs incurred in connection with such
            action or proceeding, in addition to any other damages or relief
            awarded, regardless of whether such action proceeds to final
            judgment.

                                       15
<PAGE>

      9.18  The Palm Springs Ltd Partnership Agreement shall be amended and
            restated to reflect the transactions set forth herein. It is hereby
            intended that Company's tax attributes attributable to the OP Units
            shall be preserved in the Assigned Interest. In connection
            therewith, the Palm Springs Ltd Partnership Agreement shall be
            amended so as to reflect that Company shall have an initial capital
            account balance of $3,568,788 and a ten percent (10%) "profit"
            percentage interest in Palm Springs Ltd and that Company shall be
            allocated a sufficient amount of debt of Palm Springs Ltd
            (including, if necessary, by Palm Springs Ltd having made available
            to Company sufficient debt for it to guarantee or indemnify through
            the execution of one or more "bottom dollar" guarantees or
            indemnities) so that Company shall not recognize any income or gain
            under Section 752 or 465 of the Internal Revenue Code of 1986, as
            amended.

10.   As Is

      10.01 Company expressly acknowledges and agrees that, subject to and in
accordance with the terms and conditions of this Agreement, in connection with
distribution of the Assigned Interest to Company, Company accepts the Property
on an "as-is-where-is and with all faults" basis.

      10.02 This Agreement, as written, contains all the terms of the agreement
entered into between the parties as of the date hereof, and Company acknowledges
that neither Operating Partnership nor any of its Affiliates or Representatives,
has made any representations or held out any inducements to Company, and
Operating Partnership hereby specifically disclaims any representation, oral or
written, past, present or future, other than those specifically set forth in
this Agreement. Without limiting the generality of the foregoing, Company has
not relied on any representations or warranties, and neither Operating
Partnership nor any of its Affiliates or Representatives has or is willing to
make any representations or warranties, express or implied, other than as may be
expressly set forth herein, as to: (a) the status of title to the Property; (b)
the current or future real estate tax liability, assessment or valuation of the
Property; (c) the potential qualification of the Property for any and all
benefits conferred by any Laws whether for subsidies, special real estate tax
treatment, insurance, mortgages or any other benefits, whether similar or
dissimilar to those enumerated; (d) the compliance of the Property in its
current or any future state with applicable Laws or any violations thereof,
including, without limitation, those relating to access for the handicapped,
environmental or zoning matters, and the ability to obtain a change in the
zoning or a variance in respect to the Property's non-compliance, if any, with
zoning Laws; (e) the nature and extent of any right-of-way, lease, possession,
lien, encumbrance, license, reservation, condition or otherwise; (f) the
availability of any financing for the purchase, alteration, rehabilitation or
operation of the Property from any source, including, without limitation, any
government authority or any lender; (g) the current or future use of the
Property; (h) the present and future condition and operating state of any
personal property and the present or future structural and physical condition of
the buildings or other improvements located on the Property, their suitability
for rehabilitation or renovation, or the need for expenditures for capital
improvements, repairs or replacements thereto; (i) the viability, financial
condition or continued

                                       16
<PAGE>

occupancy of any tenant; (j) the status of the leasing market in which any
Property is located; or (k) the actual or projected income or operating expenses
of the Property.

      10.03 Company or anyone claiming by, through or under Company, hereby
fully and irrevocably releases Operating Partnership, its Affiliates and
Representatives, from any and all claims that it may now have or hereafter
acquire against Operating Partnership, its Affiliates or Representatives for any
cost, loss, liability, damage, expense, action or cause of action, whether
foreseen or unforeseen, arising from or related to any construction defects,
errors or omissions on or in the Property, the presence of environmentally
hazardous, toxic or dangerous substances, or any other conditions (whether
patent, latent or otherwise) affecting the Property. Company further
acknowledges and agrees that this release shall be given full force and effect
according to each of its expressed terms and provisions, including, but not
limited to, those relating to unknown and suspected claims, damages and causes
of action.

      10.04 This Section 10 shall survive the Closing or sooner termination of
this Agreement.

            [The remainder of this page is intentionally left blank.]

                                       17
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered all on the day and year first above written.

                                   OPERATING PARTNERSHIP:

                                   PHILIPS INTERNATIONAL REALTY, L.P., a
                                   Delaware limited partnership

                                   By: Philips International Realty Corp., a
                                       Maryland corporation, its general partner

                                   By: /s/ Louis J. Petra
                                      -------------------
                                   Name:  Louis J. Petra
                                   Title: President

                                   COMPANY:

                                   SL FLORIDA LLC, a Delaware limited liability
                                   company

                                   By: /s/ Sheila Levine
                                      ------------------
                                        Sheila Levine, its Member

                                   By: Palm Mile Corp., a New York corporation,
                                       its Member

                                   By: /s/ Sheila Levine
                                      ------------------
                                   Name:  Sheila Levine
                                   Title: Sole Shareholder

<PAGE>

      The undersigned authorize and consent to (both on behalf of themselves and
Palm Springs Ltd) all of the transactions contemplated by this Agreement and all
of the provisions under this Agreement, and each shall (and shall cause Palm
Springs Ltd to) take any and all actions and execute and deliver any and all
instruments, documents or agreements and to otherwise extend their full
cooperation so as to effectuate and satisfy and cause the effectuation of and
satisfaction of any and all of the representations, warranties, covenants and
obligations made herein.

                            PHILIPS INTERNATIONAL REALTY, L.P., a
                            Delaware limited partnership

                                 By: Philips International Realty Corp., a
                                     Maryland corporation, its general partner

                                 By: /s/ Louis J. Petra
                                    -------------------
                                 Name: Louis J. Petra
                                 Title: President

                                 PALM SPRINGS MILE ASSOCIATES, LTD., a Florida
                                 limited partnership

                                 By: Philips Palm Springs Sub-VIII, Inc., a
                                     Delaware corporation, its general partner

                                 By: /s/ Louis J. Petra
                                    -------------------
                                 Name: Louis J. Petra
                                 Title: President

                                 PHILIPS PALM SPRINGS SUB-VIII, INC., a
                                 Delaware corporation

                                 By: /s/ Louis J. Petra
                                    -------------------
                                 Name: Louis J. Petra
                                 Title: President

                                 PHILIPS INTERNATIONAL REALTY CORP., a
                                 Maryland corporation

                                 By: /s/ Louis J. Petra
                                    -------------------
                                 Name: Louis J. Petra
                                 Title: President

<PAGE>

      By no later than ten (10) days prior to the Closing Date, PMC hereby
agrees that it shall have contributed and/or assigned all of the PMC Units to
Company free and clear of any and all liens and encumbrances and Levine hereby
agrees that she shall have contributed and/or assigned all of the Levine Units
to the Company free and clear of any and all liens and encumbrances.

                                   /s/ Sheila Levine
                                   -------------------------------
                                   SHEILA LEVINE

                                   PALM MILE CORP., a New York
                                   corporation

                                   By: /s/ Sheila Levine
                                       --------------------------
                                   Name: Sheila Levine
                                   Title: Sole Shareholder

<PAGE>

                                   SCHEDULE A

                        LEGAL DESCRIPTION OF THE PROPERTY

                                 [See attached]

<PAGE>

                                   SCHEDULE B

                              INTENTIONALLY DELETED

<PAGE>

                                   SCHEDULE C

                       ASSIGNMENT OF PARTNERSHIP INTEREST
                      IN PALM SPRINGS MILE ASSOCIATES, LTD.

      THIS ASSIGNMENT OF PARTNERSHIP INTEREST (this "Assignment") is made as of
this ___ day of ___________, 2000, by PHILIPS INTERNATIONAL REALTY, L.P., a
Delaware limited partnership, having an office at 417 Fifth Avenue, Third Floor,
New York, New York 10016 ("Assignor"), and SL FLORIDA LLC, a Delaware limited
liability company, having an office at c/o Philips International Realty Corp.,
417 Fifth Avenue, Third Floor, New York, New York 10016 (the "Assignee").

                              W I T N E S S E T H:

      WHEREAS, Assignor owns a 99.99% limited partnership interest in Palm
Springs Mile Associates, Ltd., a Florida limited partnership ("Limited
Partnership");

      WHEREAS, Limited Partnership owns undivided interests in those four
parcels comprising that certain real property located in Miami Dade County,
State of Florida as more particularly described on Schedule 1 annexed hereto
(the "Property");

      WHEREAS, this Assignment is being made pursuant to that certain Redemption
Agreement dated as of April __, 2000 (the "Redemption Agreement") by and between
Assignor and Assignee, whereby in exchange for all of the units in Assignor
owned by Assignee, Assignor shall distribute to Assignee a 10% general
partnership interest (the "Assigned Interest") in Limited Partnership having an
equity value and being encumbered by such debt as set forth in the Redemption
Agreement, and Assignee shall become the general partner of Limited Partnership;

      WHERAS, simultaneously with the distribution of the Assigned Interest to
Assignee, Assignor shall, pursuant to a separate redemption agreement of even
date with the Redemption Agreement, distribute to Philip Pilevsky a 90% limited
partnership interest in Limited Partnership in exchange for all of the units in
Assignor owned by him and Limited Partnership shall redeem the 0.01% partnership
interest in Limited Partnership owned by Philips Palm Springs Sub-VIII, Inc.,
the general partner of Limited Partnership, for an amount of cash equal to the
equity value of such interest as of immediately prior to this Assignment;

      WHEREAS, upon the distribution by Assignor of the Assigned Interest to
Assignee, Assignee shall no longer be a partner in Assignor; and

      WHEREAS, the Amended and Restated Limited Partnership Agreement of Limited
Partnership (the "Partnership Agreement") shall be amended and restated to
reflect the

<PAGE>

transactions undertaken pursuant to the Redemption Agreement and other
redemption agreements of even date therewith.

      NOW, THEREFORE, for Ten ($10) Dollars and other good and valuable
consideration, the mutual receipt and legal sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

1.    All of the recitals set forth above are incorporated herein as if fully
      set forth below.

2.    Assignor represents and warrants to Assignee that: (a) Assignor is the
      record owner of the Assigned Interest, and the Assigned Interest is free
      and clear of any lien, claim or encumbrance; (b) Assignor has full right,
      power and authority to perform the terms of this Assignment; and (c)
      Assignor has not heretofore sold, assigned, transferred, encumbered,
      pledged or hypothecated all or any part of the Assigned Interest.

3.    Assignor hereby sells, grants, assigns, transfers and conveys to Assignee
      all of its legal and beneficial right, title and interest in and to the
      Assigned Interest which shall include, without limitation, all right,
      title and interest, if any, of Assignor in and to the assets of Limited
      Partnership and Assignor's right to receive any past, present or future
      profits, gains, losses and distributions of any nature from Limited
      Partnership. The Partnership Agreement shall be amended to reflect that
      Assignee shall have an initial capital account balance immediately
      following Assignor's distribution of the Assigned Interest to Assignee
      equal to the equity value of such Assigned Interest as set forth in the
      Redemption Agreement, and to reflect that Assignee shall have a "profit"
      percentage interest of 10% in respect of the Assigned Interest.

4.    Assignee hereby accepts the Assignment of the Assigned Interest and agrees
      to assume, fulfill, perform and discharge all the obligations and
      liabilities of Assignor with respect to the Assigned Interest, accruing or
      obligated to be performed from and after the date hereof.

5.    The Assigned Interest shall be subject to the amount of Limited
      Partnership's debt as set forth in the Redemption Agreement, and such debt
      shall have terms no less favorable to Limited Partnership than those set
      forth on Schedule F to the Redemption Agreement.

6.    This Assignment shall inure to the benefit of and be binding upon the
      parties hereto and their respective successors and assigns.

7.    This Assignment is the final expression of, and contains the entire
      agreement between, the parties with respect to the subject matter hereof,
      and supersedes all prior understandings with respect thereto.

8.    This Assignment may not be modified, changed, supplemented or terminated,
      nor may any obligations hereunder be waived, except by written instrument,
      signed by the party to be charged or by its agent duly authorized in
      writing, or as otherwise expressly permitted herein.

                                       2
<PAGE>

9.    This Assignment shall be interpreted and enforced in accordance with the
      laws of the State of New York without reference to principles of conflicts
      of laws.

10.   This Assignment may be executed in one or more counterparts, each of which
      shall be deemed to be an original Assignment, but all of which, taken
      together, shall constitute but one and the same Assignment.

            [The remainder of this page is intentionally left blank.]

                                       3
<PAGE>

      IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as
of the date first written above.

                                   ASSIGNOR:

                                   PHILIPS INTERNATIONAL REALTY, L.P., a
                                   Delaware limited partnership

                                   By: Philips International Realty Corp., a
                                       Maryland corporation, its general partner

                                   By:
                                      -----------------------------
                                   Name:
                                   Title:

                                   ASSIGNEE:

                                   SL FLORIDA LLC, a Delaware limited liability
                                   company

                                   By:
                                      ------------------------------
                                       Sheila Levine, its Member

                                   By: Palm Mile Corp., a New York corporation,
                                       its Member

                                   By:
                                      ------------------------------
                                   Name:  Sheila Levine
                                   Title: Sole Shareholder

<PAGE>

      By signing below, Limited Partnership consents to Assignor's assignment of
the Assigned Interest to Assignee pursuant to this Assignment and the Redemption
Agreement and hereby agrees to amend the Partnership Agreement in accordance
with this Assignment and the Redemption Agreement and to admit Assignee as a
general partner of Limited Partnership pursuant to the Partnership Agreement, as
may be amended from time to time.

PALM SPRINGS MILE ASSOCIATES, LTD.,
a Florida limited partnership

By: Philips Palm Springs Sub-VIII, Inc.,
a Delaware corporation, its general partner

By:
    ------------------
Name:
Title:

<PAGE>

                                   SCHEDULE 1

                        LEGAL DESCRIPTION OF THE PROPERTY

                                 [See attached]

<PAGE>

                                   SCHEDULE D

                                 GENERAL RELEASE
                           FROM OPERATING PARTNERSHIP

                                     RELEASE

TO ALL WHOM THESE PRESENTS
SHALL COME OR MAY CONCERN, KNOW THAT

PHILIPS INTERNATIONAL REALTY, L.P., a Delaware limited partnership, and PHILIPS
INTERNATIONAL REALTY CORP., a Maryland corporation, having an office at 417
Fifth Avenue, Third Floor, New York, New York 10016, on behalf of themselves and
each of their respective direct or indirect subsidiaries, employees, officers,
directors or other affiliates, successors, predecessors and permitted assigns

                            collectively as RELEASOR,

for good and valuable consideration, receipt of which is hereby acknowledged,
release and discharge

SL FLORIDA LLC, a Delaware limited liability company, having an office at c/o
Philips International Realty Corp., 417 Fifth Avenue, Third Floor, New York, New
York 10016, and any of its direct or indirect subsidiaries, employees, officers,
directors, members or other affiliates, successors, predecessors and permitted
assigns

                            collectively as RELEASEE

from all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, admiralty or equity, which
against RELEASEE, RELEASOR, ever had, now have or hereafter can, shall or may,
have for, upon, or by reason of any matter, cause or thing whatsoever from the
beginning of the world to the day of the date of this Release and relating to,
arising under or in connection with that certain Redemption Agreement dated as
of April __, 2000 by and among RELEASOR and RELEASEE.

This RELEASE may not be changed orally.

            [The remainder of this page is intentionally left blank.]

<PAGE>

In Witness Whereof, RELEASOR has hereunto set RELEASOR's hand and seal on this
___ day of April, 2000.

                                   RELEASOR:

                                   PHILIPS INTERNATIONAL REALTY, L.P., a
                                   Delaware limited partnership

                                   By: Philips International Realty Corp., a
                                       Maryland corporation, its general partner

                                   By:
                                      ----------------------------
                                   Name:
                                   Title:

                                   PHILIPS INTERNATIONAL REALTY CORP., a
                                   Maryland corporation

                                   By:
                                      ----------------------------
                                   Name:
                                   Title:

                                   RELEASEE:

                                   SL FLORIDA LLC, a Delaware limited liability
                                   company

                                   By:
                                      ----------------------------
                                       Sheila Levine, its Member

                                   By: Palm Mile Corp., a New York corporation,
                                       its Member

                                   By:
                                      ----------------------------
                                   Name:  Sheila Levine
                                   Title: Sole Shareholder

<PAGE>

                                   SCHEDULE E

                                 GENERAL RELEASE
                                  FROM COMPANY

                                     RELEASE

TO ALL WHOM THESE PRESENTS
SHALL COME OR MAY CONCERN, KNOW THAT

SL FLORIDA LLC, a Delaware limited liability company, having an office at c/o
Philips International Realty Corp., 417 Fifth Avenue, Third Floor, New York, New
York 10016, and any of its direct or indirect employees, officers, directors,
members or subsidiaries or other affiliates, successors, predecessors and
permitted assigns

                            collectively as RELEASOR,

for good and valuable consideration, receipt of which is hereby acknowledged,
release and discharge

PHILIPS INTERNATIONAL REALTY, L.P., a Delaware limited partnership, and PHILIPS
INTERNATIONAL REALTY CORP., a Maryland corporation, having an office at 417
Fifth Avenue, Third Floor, New York, New York 10016, on behalf of themselves and
each of their respective direct or indirect subsidiaries, employees, officers,
directors or other affiliates, successors, predecessors and permitted assigns

                            collectively as RELEASEE

from all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, admiralty or equity, which
against RELEASEE, RELEASOR, ever had, now have or hereafter can, shall or may,
have for, upon, or by reason of any matter, cause or thing whatsoever from the
beginning of the world to the day of the date of this Release and relating to,
arising under or in connection with that certain Redemption Agreement dated as
of April __, 2000 by and among RELEASOR and RELEASEE.

This RELEASE may not be changed orally.

            [The remainder of this page is intentionally left blank.]

<PAGE>

In Witness Whereof, RELEASOR has hereunto set RELEASOR's hand and seal on this
___ day of April, 2000.

                                   RELEASOR:

                                   SL FLORIDA LLC, a Delaware limited liability
                                   company

                                   By:
                                      ----------------------------
                                       Sheila Levine, its Member

                                   By: Palm Mile Corp., a New York corporation,
                                       its Member

                                   By:
                                      ----------------------------
                                   Name:  Sheila Levine
                                   Title: Sole Shareholder

                                   RELEASEE:

                                   PHILIPS INTERNATIONAL REALTY, L.P., a
                                   Delaware limited partnership

                                   By: Philips International Realty Corp., a
                                       Maryland corporation, its general partner

                                   By:
                                      --------------------------
                                   Name:
                                   Title:

                                   PHILIPS INTERNATIONAL REALTY CORP., a
                                   Maryland corporation

                                   By:
                                      --------------------------
                                   Name:
                                   Title:

<PAGE>

                                   SCHEDULE F

                             TERMS OF DEBT FINANCING

1.  Borrower:         Palm Springs Ltd
2.  Lender:           Prudential Securities Credit Corporation, a Delaware
                      corporation
3.  Loan:             [$ 88M] (estimated)
4.  Security:         First mortgage lien encumbering the Property
5.  Securitization:

(a)     Property:  "Philips Plaza", located in Hialeah, Florida
        Rate:      Fixed, 225 basis points above 10 year treasury, at 30 year
                   amortization
        LTV:       75/1.3 x DSC
        Loan:      $ 7.5M (estimated)

(b)     Property:  "Shops at 49th Street", located in Hialeah, Florida
        Rate:      Fixed, 205 basis points above 10 year treasury, at 30 year
                   amortization
        LTV:       80/1.25 x DSC
        Loan:      $ 21.0M (estimated)

(c)     Terms for both properties:
               -10 year term
               -no points
               -Lender's standard securitization requirements regarding
               structure and administration of loan
               -"non recourse"
               -no cross collateralization

6.  Bridge Loan

        Properties:   "Mall on the Mile", located in Hialeah, Florida.
                      "Palm Springs Village", located in Hialeah, Florida.
        Loan:         $ 60.1M (estimated)
        Terms:
               -Floating, 200 basis points above LIBOR
               -1 year initial term and 1 point fee, or 1 1/2 initial term and 1
               1/2 point fee (quarterly renewals)
               -no amortization
               -construction loan available
               -10% recourse/guaranty, subject to asset sale and elimination of
               70% LTV (quarterly review)<PAGE>

                                                                  Exhibit 10.5

                               FIRST AMENDMENT TO
                 ASSET CONTRIBUTION, PURCHASE AND SALE AGREEMENT

      THIS FIRST AMENDMENT TO ASSET CONTRIBUTION, PURCHASE AND SALE AGREEMENT
(this "First Amendment") is made and entered into as of this 31st day of May,
2000, by and among: PHILIPS INTERNATIONAL REALTY, L.P., a Delaware limited
partnership ("Contributor"), PHILIPS INTERNATIONAL REALTY CORP., a Maryland
corporation ("Contributor Parent"), THOSE CERTAIN PARTIES IDENTIFIED AS A
"PHILIPS QRS" or a "LOWER TIER ENTITY" ON THE SIGNATORY PAGES HERETO (such
parties, Contributor and Contributor Parent, collectively, the "Seller
Parties"); the Seller Parties each having an address at 417 Fifth Ave., New
York, NY 10016, KIR ACQUISITION LLC, a Delaware limited liability company
("General Partner") and KIMCO INCOME OPERATING PARTNERSHIP, L.P. ("Limited
Partner"), a Delaware limited partnership; General Partner and Limited Partner
each having an address at 3333 New Hyde Park Rd., P.O. Box 5020, New Hyde Park,
NY 11042-0020. All capitalized terms not specifically defined herein shall have
the meanings ascribed to them by that certain Asset Contribution, Purchase and
Sale Agreement, dated as of April 28, 2000 (the "Agreement") by and between the
parties hereto.

                                    RECITALS

      A. The parties hereto entered into the Agreement.

      B. Purchaser has requested and Seller has agreed to grant an extension of
the Due Diligence Period for a period of two (2) weeks.

      C. The parties hereto desire to amend the Agreement as more particularly
set forth herein.

      NOW, THEREFORE, in consideration of Ten Dollars (US$10.00), the mutual
promises contained herein, and other good and valuable consideration, the mutual
receipt and legal sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

      1. Due Diligence Period. The Due Diligence Period shall be deemed extended
until 7:00 p.m., June 15, 2000, and all references in the Agreement to the Due
Diligence Period shall be deemed to reference such amended expiration date.

      2. Miscellaneous. Except as expressly set forth herein, all other
provisions of the Agreement shall remain in full force and effect. This First
Amendment may be executed in one or more counterparts, each of which shall be
deemed an original, and all of which, taken together,

<PAGE>

shall constitute a single instrument. Facsimile signatures shall be binding for
the purposes of the execution and delivery of this First Amendment, provided
that original signatures are delivered to all parties promptly following the
execution of this First Amendment.

                   [ SIGNATURES APPEAR ON THE FOLLOWING PAGE ]

                                       2
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment
the 31st day of May, 2000.

                                 Contributor: PHILIPS INTERNATIONAL REALTY, L.P.

                                 BY: Philips International Realty Corp.,
                                      general partner

                                 By:        /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 Contributor Parent: PHILIPS INTERNATIONAL
                                 REALTY CORP.

                                 By:        /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 General Partner: KIR ACQUISITION LLC

                                 BY: Kimco Income Operating Partnership, L.P.,
                                      sole member
                                 By: Kimco Income REIT, general partner

                                 By: /s/ Bruce M. Kauderer
                                     --------------------------------------
                                     Name:  Bruce M. Kauderer
                                     Title: Vice President

                                 Limited Partner: KIMCO INCOME OPERATING
                                 PARTNERSHIP, L.P., a Delaware limited
                                 partnership

                                 BY: Kimco Income REIT, general partner

                                 By: /s/ Bruce M. Kauderer
                                     --------------------------------------
                                     Name:  Bruce M. Kauderer
                                     Title: Vice President

<PAGE>

                                 Lower Tier Entities:

                                 PHILIPS BRANHAVEN ASSOCIATES, L.P.

                                 BY: PHILIPS BRANHAVEN SUB-III, INC.,
                                        general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS ENFIELD ASSOCIATES L.P.

                                 BY: PHILIPS ENFIELD SUB-IV, INC.
                                         general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 FOXBOROUGH SHOPPING L.L.C.

                                 BY: FOXBOROUGH SUB-IX, INC., managing member

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

<PAGE>

                                 DELRAN SHOPPING, L.L.C.

                                 BY: PHILIPS DELRAN SHOPPING, SUB-X, INC.,
                                        managing member

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS AVENUE U ASSOCIATES, L.P.

                                 BY: PHILIPS AVENUE U SUB-VI, INC.,
                                        general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS MEADOWBROOK ASSOCIATES, L.P.

                                 BY: PHILIPS MEADOWBROOK SUB-V, INC.,
                                        general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

<PAGE>

                                 PHILIPS MERRICK ASSOCIATES L.P.

                                 BY: PHILIPS MERRICK SUB-II, INC.,
                                        general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS FOREST ASSOCIATES, L.P.

                                 BY: PHILIPS FOREST SUB-I, INC., general partner

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 Philips QRSs:

                                 PHILIPS BRANHAVEN SUB-III, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS ENFIELD SUB-IV, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

<PAGE>

                                 PHILIPS FOXBOROUGH SUB-IX, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS DELRAN SHOPPING SUB-X, INC.
                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS AVENUE U SUB-VI, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS MEADOWBROOK SUB-V, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

<PAGE>

                                 PHILIPS MERRICK SUB-II, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

                                 PHILIPS FOREST SUB-I, INC.

                                 By: /s/ Louis J. Petra
                                    ----------------------------
                                     Name:  Louis J. Petra
                                     Title: President

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