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  COMMONWEALTH OF PENNSYLVANIA                    AGREEMENT TO SELL AND PURCHASE
COUNTY OF LAWRENCE  (New Castle)                             REAL ESTATE

         THIS AGREEMENT TO SELL AND PURCHASE REAL ESTATE ("Agreement") is made
and entered into as of the date of the last execution hereof, which date is the
____ day of April, 2000, by and between MARK TWELVE ASSOCIATES, L.P., a
Pennsylvania limited partnership, hereinafter referred to as "Seller", and
LOWE'S HOME CENTERS, INC., a North Carolina corporation, hereinafter referred to
as "Buyer".
                              W I T N E S S E T H:

         THAT WHEREAS, Seller has warranted to Buyer that it is the owner of the
premises described hereinafter; and

         WHEREAS, Seller has offered to sell and Buyer has agreed to purchase
the premises described hereinafter subject to the terms of this Agreement.

         NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions contained herein, the sufficiency of which consideration is
acknowledged by all parties hereto, IT IS HEREBY AGREED AS FOLLOWS:

         1.  DESCRIPTION. The premises which are to be purchased by Buyer and
sold and conveyed by Seller consist of that certain tract of land containing
approximately 13 acres located in Union Township, Lawrence County, Pennsylvania
and generally shown outlined in red upon Exhibit A attached hereto and made by
this reference a part hereof (the "Premises"), together with any improvements
and personal property currently located thereon and all and singular the rights,
privileges, advantages, and appurtenances belonging or in anywise appertaining
to the Premises, as well as all easements appurtenant to the Premises.

         2.  SURVEY. Seller shall obtain and deliver or cause to be delivered to
Buyer a boundary survey map of the Premises drawn in accordance with Buyer's
Survey Requirements which are attached hereto and labeled Exhibit B (the
"Survey"). The metes and bounds description of the Premises resulting from the
Survey, if and as accepted by Buyer, shall upon such acceptance supersede and
replace the description of the Premises set forth in Paragraph 1 hereof for all
purposes hereunder and shall be the description of the Premises used in the
special warranty deed and Owner's Policy of Title Insurance to be furnished
hereunder. Seller shall be solely responsible for the cost of the Survey and
shall pay the same directly either prior to closing or by a deduction from
Seller's proceeds at closing.

         3.  TIME FOR PERFORMANCE. Seller shall convey the Premises to Buyer
thirty (30) days following the earlier to occur of:

             (a) One hundred twenty (120) days from the last execution of this
Agreement; or

             (b) Notification by Buyer that all of the requirements set forth in
Paragraph 5 of this Agreement have been fulfilled, in the opinion of Buyer,
unless the Agreement is terminated as otherwise provided.

         Buyer shall have the option to extend the time specified in
sub-paragraph (a) above for an additional one hundred twenty (120) days by
giving written notice to Seller before the expiration of the one hundred twenty
(120) day period set forth in subparagraph (a) above and depositing with the
Title Company (as hereinafter defined) an additional deposit of TWENTY-FIVE
THOUSAND DOLLARS ($25,000.00) (the "Second Deposit").

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         4.  PURCHASE PRICE. The purchase price for the Premises shall be for
the total consideration of ONE MILLION NINE HUNDRED THOUSAND AND NO/100
($1,900,000.00) (the "Purchase Price").

         Within five (5) business days after the full execution of this
Agreement, Buyer shall deliver into escrow with the Title Company an earnest
money deposit (the "First Deposit") in the amount of TWENTY-FIVE THOUSAND
DOLLARS ($25,000), which First Deposit shall be held by the Title Company in an
interest-bearing escrow account and disbursed in accordance with the terms of
this Agreement. The First Deposit and the Second Deposit shall hereinafter be
collectively (or individually, as the case may be) referred to as the "Deposit".
The Deposit shall be refunded to Buyer in the event Buyer rightfully elects to
terminate this Agreement under the terms and conditions defined herein;
otherwise, it shall be applied to the Purchase Price at closing or, in the event
of Purchaser's default, paid over to Seller in accordance with Paragraph 14
hereof.

         5.  BUYER'S REQUIREMENTS. Buyer shall be under no obligation to
purchase the Premises or otherwise perform under this Agreement unless Buyer
determines the Premises to be suitable for its intended purposes and until each
of the following requirements of Buyer is satisfied. The decision as to whether
the Premises are suitable for its intended purposes and the requirements have
been fulfilled shall be the sole decision of Buyer, determined in the absolute
discretion of Buyer, with Buyer's decision being final and binding upon both
parties. Buyer shall have one hundred twenty (120) days (or two hundred forty
(240) days, if extended under the provisions of Paragraph 3 above) from the last
execution of this Agreement to notify Seller of its cancellation of this
Agreement due to Buyer's determination that the Premises are unsuitable or to a
failure of fulfillment of any one of the requirements. If Buyer so elects to
terminate and is not in material default hereunder, the Title Company shall be
obligated to return the Deposit, together with all interest earned thereon, to
Buyer with neither party thereafter having any other rights or obligations under
this Agreement.

                         REQUIREMENTS TO BE ACCOMPLISHED

             (a) Governmental Approvals: Buyer must have obtained or be able to
obtain, on terms satisfactory to Buyer, all appropriate municipal, county, state
and federal authorities' approvals and permits required for Buyer's intended use
and development of the Premises (collectively, the "Permits and Approvals")
including, but not limited to, the following: proper zoning, site plan and
development plan approvals, including any required drainage or storm water
management, building permits for planned improvements including approval for the
construction or relocation of utilities, any necessary governmental approval for
access such as curb cuts or entrances and any wetlands or environmental
approvals and permits. Notwithstanding and in addition to the foregoing, Seller
must have obtained and provided to Buyer all necessary variances, amendments and
approvals with respect to the existing approved site plan for the Premises as
provided in Paragraph7 hereof.

             (b) Utilities: The Premises must have available suitable utilities,
including by way of illustration and not limitation, electricity, water, sewer
or septic tank disposal facilities, telephone services and natural gas if
available locally.

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             (c) Public Service: The Premises must have available suitable fire
and police protection.

             (d) Adaptability to Construction: The Premises must be adaptable to
construction of the improvements envisioned by Buyer at costs satisfactory to
Buyer. The Premises must not have been used as a dump and further must not
contain any harmful, toxic or polluting substance.

             (e) Ingress and Egress: The Premises must have suitable legal and
insurable ingress to and egress from State Route 224 (via the shopping center
access drives shown on Exhibit A hereto or as may otherwise be approved by
Buyer).

             (f) Soil Test: Any and all soil tests conducted on the Premises by
Buyer, at Buyer's expense, must yield a result satisfactory to accomplish the
site plan development and the construction of improvements planned by Buyer.

             (g) Drainage: The Premises must be adaptable to effect drainage at
an expense satisfactory to Buyer.

             (h) Flood Plain: The Premises must not lie in a flood plain.

             (i) Environmental Conditions: Buyer must be satisfied that the
Premises is free of any pollutants, contaminants, chemical or industrial, toxic
or Hazardous Substances as defined in Paragraph 16.

             (j) Zoning: The zoning classification of the Premises must permit
Buyer's intended use of the Premises and it is a further express condition of
this Agreement for the benefit of Buyer that Buyer must have obtained all
necessary Permits and Approvals, free from conditions and restrictions
compliance with which would result in extraordinary costs of development or use,
the determination of such being in the sole discretion of Buyer, or restrictions
on Buyer's ability to use any part of the Premises for its intended use
(including related uses necessary thereto).

             (k) Ancillary Documents: Buyer and Seller shall have agreed to the
form of a declaration of easements, covenants, conditions and restrictions or
other similar instrument or an amendment to any existing reciprocal easement
agreement ("REA") adding Buyer as a party thereto and providing for the unified
development of the Premises and Seller's remaining property as shown on Exhibit
A hereto ("Seller's Remaining Property"), which REA shall be executed and
acknowledged by the parties and recorded at Closing. The Premises and Seller's
Remaining Property are hereinafter collectively referred to as the "Shopping
Center". The REA shall, inter alia, (i) establish a general site plan for the
Shopping Center generally conforming to Exhibit A hereto, (ii) establish certain
easements for the benefit of the Premises and Seller's Remaining Property
including, but not limited to, utility easements and easements for access to
State Route 224 as shown on Exhibit A, (iii) provide for the placement, to the
maximum extent permitted by applicable law and governmental authorities, of
Buyer's sign panel on the existing Shopping Center sign(s) and the construction
and installation, to the maximum extent permitted by applicable law and
governmental authorities, of an interstate multi-tenant pylon sign at a location
behind the Sears store shown on Exhibit A and along State Route 422, with
Buyer's sign panel in the top position thereon, and (iv) establish certain
restrictions on the Premises and Seller's Remaining Property, as the case may
be, as set forth in Exhibit C hereto.

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             (l) Economic Feasibility: Buyer's intended use and development of
the Premises must be deemed by Buyer to be an economically feasible project in
Buyer's sole discretion.

             (m) Third Party Consents: Seller shall have obtained and provided
to Buyer the consent or approval of any third party (including, without
limitation, any tenant or occupant of any portion of Seller's Remaining
Property) necessary or required in order to permit Buyer's intended development
and use of the Premises ("Third Party Consents") including, without limitation,
Buyer's prototypical outdoor sales and displays and the free-standing signage
contemplated by the parties as set forth in subparagraph (k) above. At closing,
Seller shall in writing represent and warrant unto Buyer that (i) all such Third
Party Consents have been obtained by Seller (and provide true and correct copies
thereof to Buyer) and (ii) no other Third Party Consents are necessary or
required. Such writing shall further set forth Seller's indemnity of Buyer with
respect to any breach of such representation and warranty.

             (n) Exclusives Rights and Restrictions:Seller hereby represents and
warrants to Buyer and Buyer acknowledges that the Premises are or may be
currently encumbered by those certain exclusive rights and restrictions set
forth in Exhibit D attached hereto ("Exclusive Rights and Restrictions"), which
Exclusive Rights and Restrictions are imposed by certain existing leases of
portions of Seller's Remaining Property. In connection therewith, Buyer and
Seller shall reasonably cooperate in order to obtain waivers or releases of the
Exclusive Rights and Restrictions from the appropriate tenants or occupants of
Seller's Remaining Property to the extent the same encumber the Premises. In the
event the parties are unable, despite the exercise of commercially reasonable
efforts, to obtain such waivers or releases on terms acceptable to Buyer, Buyer
shall have its rights set forth in the first paragraph of this Paragraph 5
including, without limitation, the right to waive the requirement set forth in
this Paragraph 5(n) and close the transaction contemplated by this Agreement
subject to such Exclusive Rights and Restrictions.

         6.  TITLE INSURANCE. Buyer shall be under no obligation to purchase the
Premises from Seller unless Buyer shall be able to obtain at closing, at Buyer's
cost, an owner's policy of title insurance (the "Policy") from Commonwealth Land
Title Insurance Company, having an address at c/o Land America Financial Group,
Inc., National Commercial Services, 707 East Main Street, Suite 250, Richmond,
Virginia 23219-2802 (the "Title Company"), based upon a satisfactory commitment
for title insurance for the Premises (the "Commitment") to be furnished to Buyer
by the Title Company following execution of this Agreement by both parties. The
Commitment and Policy shall identify the Premises and all easements appurtenant
thereto by the legal description(s) set forth on the Survey (as defined in
Paragraph 2 above) and contain endorsements (unless prohibited by law) stating
(a) that all of the parcels comprising the Premises are contiguous (if the
Premises is comprised of more than one parcel) and that the Premises is
contiguous to any property containing easements appurtenant thereto, (b) the
zoning classification of the Premises, (c) that the Premises abuts the public
street(s) immediately adjacent thereto and has direct and valid full and
unrestricted access thereto at the locations designated on the site plan
provided by Buyer, and (d) such other endorsements as Buyer may reasonably
require (the "Endorsements"). Seller hereby agrees to provide to the Title
Company any abstracts of title covering the Premises and/or any other form of
title evidence it may have in its possession or control, including any
attorney's title opinion or any owner's title insurance policy. Buyer's decision
as to whether "satisfactory" title insurance can be obtained shall be final and
shall not be subject to question by Seller. Seller shall cooperate fully with
Buyer in helping Buyer to eliminate such exceptions from Buyer's Commitment as
Buyer may desire eliminated, and further, Seller shall cooperate fully with
Buyer in order for all requirements of closing outlined in Buyer's Commitment to
be accomplished in all respects.

         The Commitment and Policy must only contain exceptions for liens,
encumbrances, claims, easements or other matters that would not adversely affect
Buyer's intended use and development of the Premises as determined in Buyer's
sole discretion. Those exceptions and encumbrances which have been approved or
accepted by Buyer hereunder shall be the "Permitted Encumbrances".

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         7.  DELAYS FOR PERMITS AND APPROVALS; REA. Except as provided herein,
Buyer shall promptly commence efforts to obtain any and all Permits and
Approvals at its own expense; provided, however, that Seller shall promptly
commence efforts to obtain and diligently pursue at its own expense any and all
necessary variances and approvals with respect to the existing approved site
plan in order to permit Buyer's prototypical building on the Premises in a
manner and design acceptable to Buyer as well as any Third Party Consents. Buyer
and Seller shall cooperate with each other in this regard and all applications
and submittals to governmental authorities or third parties and all terms and
conditions of any such approvals to be obtained by Seller shall be subject to
the prior review and approval of Buyer. Seller shall, if requested or required
to do so, execute such applications or requests as may be necessary for the
owner of the Premises to execute and to provide any information privy to, known
to, or in possession of Seller which may be necessary or useful in completing
applications or requests. In addition, the parties acknowledge that they are in
negotiations with respect to the REA and will diligently pursue same. If, while
in compliance with the requirements of this Agreement, the parties shall
experience delay in obtaining any necessary Permits and Approvals or Third Party
Consents to use the Premises for Buyer's intended use or the REA shall not be
completed within the time frames herein set forth, Buyer will by written notice
to Seller elect one of the following:

             (a) To waive such Permits and Approvals, Third Party Consents
and/or REA and to close the transaction in accordance with the terms of this
Agreement.

             (b) To cancel this Agreement and to receive a complete refund of
the Deposit, together with all interest earned thereon, in which event neither
Seller nor Buyer will have any further rights, duties or obligations under this
Agreement, except as expressly provided herein; provided, however, that if Buyer
elects to terminate this Agreement and receive a refund of the Deposit as
aforesaid as a result of Seller's willful breach of its obligations hereunder,
Buyer's termination shall be without prejudice to Buyer's right to sue Seller
for damages in the amount of the out-of-pocket costs and expenses incurred by
Buyer in its investigation of the Premises.

         Further, if the sale of the Premises to Buyer constitutes or requires a
subdivision of the Premises owned by Seller, Seller shall pay all subdivision
and platting expenses and obtain all necessary governmental approvals.

         8.  ENVIRONMENTAL DISCLOSURE AND INVESTIGATION. Within ten (10)
business days of the last execution of this Agreement, Seller shall inform Buyer
of any Hazardous Materials or Release, and of any underground structures or
utilities which, to the best of Seller's actual knowledge, are or may be present
on the Premises and Seller shall deliver to Buyer true, correct and complete
copies of any environmental assessments and reports for the Premises in Seller's
possession or control, together with any and all soils reports, surveys and
other reports and information for the Premises and the Survey, and such further
documentation (for example, any title evidence, surveys, reports, studies, test
results, engineering drawings, permits or tank registrations) Seller has within
its possession or control regarding the physical condition of the Premises and
any structures or utilities thereon. Seller understands that Buyer needs this

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information in order to properly evaluate the Premises, to avoid damaging
underground structures and utilities and to avoid causing, contributing to or
exacerbating the Release of a Hazardous Substance in the course of its
investigations.

         Seller hereby grants to Buyer and its employees, agents, consultants
and contractors the right to enter upon the Premises and, upon at least 24 hours
advance notice to Seller, Seller's Remaining Property (as necessary) in order to
itself conduct any surveys, soil tests, environmental assessments and tests and
other investigations as Buyer shall deem necessary. Buyer agrees to pay the
costs and expenses associated with any such investigation and testing it
undertakes and to repair and restore any damage to the Premises caused by
Buyer's investigations or testing, at Buyer's expense. Buyer also agrees to
defend and hold Seller harmless from all costs, expenses and liabilities arising
out of Buyer's negligence or willful misconduct or that of its employees,
agents, consultants or contractors in performing any such investigation or
testing of the Premises, except that Buyer shall have no responsibility to
Seller and Seller hereby releases Buyer and agrees to defend and hold Buyer
harmless from all costs, expenses and liabilities arising in connection with
environmental conditions, Hazardous Materials Release or underground structures
or utilities that were actually known by Seller and not disclosed to Buyer as
provided in this paragraph. In connection with any such on-site investigation,
Buyer shall cause its contractors and/or consultants to supply Seller with
certificates of insurance evidencing their respective insurance coverage.

         Soil, rock, water, asbestos, and other samples taken from the Premises
shall remain the property of Seller. Seller shall be solely responsible for
making arrangements for the lawful disposal of any contaminated samples, to pay
any related transportation or disposal fees, and to sign the manifest and any
other documents required in connection with the disposal of contaminated
samples.

         9.  POSSESSION. Buyer shall be given sole and exclusive possession of
the Premises at such time as a special warranty deed satisfactory to Buyer is
delivered by Seller to Buyer conveying to Buyer the Premises in fee simple and
Buyer pays the remaining balance of the purchase price as described in Paragraph
4 of this Agreement.

         10. CLOSING. Seller shall prepare at its cost the special warranty deed
conveying the Premises to Buyer. Seller agrees that it will convey the Premises
to Buyer by special warranty deed containing a covenant of title stating that
Seller has not done, committed or knowingly or willingly suffered to be done or
committed, any act, matter or thing whatsoever whereby the Premises, or any part
thereof, is, are, shall or may be impeached, charged or encumbered in title,
charge, estate or otherwise howsoever. Title to the Premises at closing shall be
marketable and good of record and in fact and zoned to permit Buyer's intended
use. At the closing, Seller shall convey marketable title to the Premises in fee
simple, free and clear of any and all liens, mortgages, deeds of trust, security
interests, covenants, conditions, restrictions, easements, rights-of-way,
licenses, encroachments, judgments or encumbrances of any kind except:

             (i)   the lien of real estate taxes not yet due and payable;

             (ii)  the Permitted Encumbrances; and

             (iii) the REA.

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         In addition, Buyer and Seller shall each be responsible for paying
one-half (1/2) of all state or county transfer taxes and documentary stamps, if
any, occasioned by the conveyance of the Premises as well as any notary fees
incurred, and Buyer shall be responsible for the premium for Buyer's owner's
policy of title insurance. All unpaid ad valorem taxes due and payable within
the calendar year of the closing shall be prorated between Seller and Buyer as
of the closing date. Seller shall pay all rollback taxes, recoupment fees or
similar taxes occasioned by a change in the use of the Premises in connection
with Buyer's proposed acquisition and development thereof. Seller agrees to
promptly forward to Buyer any property tax statements for the Premises received
by Seller after closing.

         Buyer and Seller each agree to indemnify and hold the other harmless
from any claims of brokers or real estate agents claiming by, through or under
the indemnifying party for fees or commissions arising out of the sale of the
Premises to Buyer. Buyer and Seller each represent to the other that they have
not employed nor engaged any real estate agents or brokers to be involved in
this transaction other than Michael Joseph Development Corporation (hereinafter
referred to as the "Broker"), for whose commission or fees Seller shall be
solely responsible.

         11. ASSIGNMENT BY BUYER. This Agreement and the rights, duties,
interests, and obligations of Buyer hereunder may be assigned by Buyer without
the consent of Seller only to an affiliate of Buyer.

         12. NOTICES. Any notices, requests or other communications required or
permitted to be given hereunder shall be in writing and shall be delivered by
hand or a widely recognized national overnight courier service or mailed by
United States registered or certified mail, return receipt requested, postage
prepaid and addressed to each party at its address as set forth below:

         To Seller:      Mark Twelve Associates, L.P.
                         20 Soundview Marketplace
                         Port Washington, New York 11050
                         Attention: Robert Masters, Esq.

         and to Buyer:   Lowe's Home Centers, Inc.
                         c/o Lowe's Companies, Inc.
                         P.O. Box 1111
                         (Highway 268 East, N. Wilkesboro, North Carolina 28659)
                         N. Wilkesboro, North Carolina  28656
                         Attention: Tony Lyall, Real Estate Manager (REO)

                    cc:  Lowe's Companies, Inc.
                         P.O. Box 1111
                         (Highway 268 East, N. Wilkesboro, North Carolina 28659)
                         N. Wilkesboro, North Carolina 28656
                         Attention: Law Dept. (REO)

         Any such notice, request or other communication shall be considered
given or delivered, as the case may be, on the date of hand or overnight courier
delivery or upon deposit in the United States mail as provided above. Rejection
or other refusal to accept or inability to deliver because of changed address of
which no notice was given shall be deemed to be receipt of the notice, request
or other communication. By giving at least five (5) days prior written notice
thereof, any party may from time to time at any time change its mailing address
hereunder.

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         13. DESTRUCTION, CONDEMNATION. In the event of any material damage to
or destruction of the Premises or any material portion thereof or in the event
of any taking or threat of taking by condemnation (or any conveyance in lieu
thereof of the Premises or any portion thereof by anyone having the power of
eminent domain), Buyer shall, by written notice to Seller delivered within
fifteen (15) days of receiving written notice from Seller of such event, elect
to: (i) terminate this Agreement and all of Buyer's obligations under this
Agreement, whereupon the Deposit, together with all interest earned thereon,
shall be refunded in full to Buyer by the Title Company and this Agreement shall
become null and void and neither party shall thereafter have any right, duty or
obligation under this Agreement, or (ii) consummate the purchase of the
Premises. If Buyer does not elect to terminate this Agreement, then Seller shall
on the closing date pay to Buyer all condemnation awards and compensation then
received by Seller, it being understood that the Premises consists of vacant,
unimproved land for which no casualty insurance coverage is provided. In
addition, Seller shall transfer and assign to Buyer, in form reasonably
satisfactory to Buyer, all rights and claims of Seller with respect to payment
for damages and compensation on account of such damage, destruction or taking.
Seller will not settle any condemnation or eminent domain proceeding or any
award or payment in respect of or in connection with the Premises without
obtaining Buyer's prior written consent in each case, which consent shall not be
unreasonably withheld or delayed.

         14. DEFAULT.

             (a) Seller's Default. One of the purposes of this Agreement is to
bind Seller to sell the Premises described in Paragraph 1. If the sale and
purchase of the Premises contemplated by this Agreement is not consummated on
account of Seller's default hereunder, the Deposit, together with all interest
earned thereon, shall be refunded in full to Buyer on notice by Buyer to the
Title Company holding such deposit, without prejudice to Buyer's rights to
enforce specific performance of this Agreement against Seller or pursue an
action at law against Seller to recover Buyer's out-of-pocket costs and expenses
incurred in connection with this transaction.

             (b) Buyer's Default. If the sale and purchase of the Premises
contemplated by this Agreement is not consummated on account of Buyer's default
hereunder, Seller shall be entitled, as its sole and exclusive remedy hereunder,
to payment of the Deposit as full and complete liquidated damages for such
default of Buyer, the parties hereto acknowledging that it is impossible to
estimate more precisely the damages which might be suffered by Seller upon
Buyer's default. Seller's entitlement and receipt of the Deposit is intended not
as a penalty, but as full liquidated damages. The right to retain such sums as
full liquidated damages is Seller's sole and exclusive remedy in the event of
default hereunder by Buyer, and Seller hereby waives and releases any right to
(and hereby covenants that it shall not) sue Buyer: (a) for specific performance
of this Agreement, or (b) to recover actual damages in excess of such sums.

         15. EASEMENTS AND RIGHTS-OF-WAY. Seller covenants and agrees that
during the term of this Agreement it shall not grant or enter into any
easements, rights-of-way, contracts for work, or other agreements affecting the

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Premises, or the title thereto, without first obtaining the prior written
consent of Buyer, which consent shall not be unreasonably withheld or delayed.

         16. WARRANTIES, REPRESENTATIONS AND COVENANTS TO SURVIVE CLOSING. The
warranties, representations and covenants made by the parties hereto shall
survive the closing of the purchase of the Premises under this Agreement and the
closing date and shall continue in full force and effect without termination for
a period of two (2) years thereafter. Also, wherever in this Agreement Seller or
Buyer shall have agreed or promised to perform certain acts or grant certain
easements or other rights where the context of the Agreement would require such
performance or grants to occur after the closing, then those agreements and
covenants expressed herein shall survive closing and continue to bind Seller and
Buyer. Each party shall indemnify, defend and hold harmless the other from and
against any and all claims, demands, liabilities and expenses (including
reasonable attorneys' fees) incurred by a party as a result of a breach by the
other party of its covenants, warranties and representations set forth in
Paragraphs 17 and 18 hereof.

         17. SELLER'S WARRANTIES, REPRESENTATIONS AND COVENANTS. As an
inducement to Buyer to enter into this Agreement and to purchase the Premises,
Seller warrants, represents and covenants to Buyer as follows:

             (a) Authority. Seller (i) is a lawfully constituted limited
partnership, duly organized, validly existing, and in good standing under the
laws of the Commonwealth of Pennsylvania; (ii) has the authority and power to
enter into this Agreement and to consummate the transactions contemplated
herein; and (iii) upon execution hereof will be legally obligated to Buyer in
accordance with the terms and provisions of this Agreement.

             (b) Title and Characteristics of Premises. Seller as of the date of
execution of this Agreement owns the Premises in fee and has marketable title
and the Premises at closing shall have the title status as described in
Paragraph 9 above.

             (c) Conflicts. The execution and entry into this Agreement, the
execution and delivery of the documents and instruments to be executed and
delivered by Seller on the closing date, and the performance by Seller of
Seller's duties and obligations under this Agreement and of all other acts
necessary and appropriate for the full consummation of the purchase and sale of
the Premises as contemplated herein, are consistent with and not in violation
of, and will not create any adverse condition under, any contract, agreement or
other instrument to which Seller is a party or any judicial order or judgment of
any nature by which Seller is bound. On the closing date all necessary and
appropriate action will have been taken by Seller authorizing and approving the
execution of and entry into this Agreement, the execution and delivery by Seller
of the documents and instruments to be executed by Seller on the closing date,
and the performance by Seller of Seller's duties and obligations under this
Agreement and of all other acts necessary and appropriate for the consummation
of the purchase and sale of the Premises as contemplated herein.

             (d) Condemnation. Seller has received no notice of, nor is Seller
aware of, any pending, threatened or contemplated action by any governmental
authority or agency having the power of eminent domain, which might result in
any part of the Premises being taken by condemnation or conveyed in lieu
thereof.

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             (e) Litigation. There is no action, suit or proceeding pending or,
to the best of Seller's actual knowledge, threatened by or against or affecting
Seller or the Premises which does or will involve or affect the Premises or
title thereto. Seller will, promptly upon receiving any such notice or learning
of any such contemplated or threatened action, give Buyer written notice
thereof.

             (h) No Violations. To the best of Seller's actual knowledge, there
are no violations of state or federal law, municipal or county ordinances, or
any other legal requirements with respect to the Premises. Seller has received
no notice (oral or written) that any municipality or governmental or
quasi-governmental authority has determined that there are such violations. In
the event Seller receives prior to the closing notice of any such violations
affecting the Premises, Seller shall promptly notify Buyer thereof, and shall
promptly and diligently defend any prosecution thereof and take any and all
commercially reasonable actions to eliminate said violations.

             (i) Foreign Ownership. Seller is not a "foreign person" as that
term is defined in the U. S. Internal Revenue Code of 1986, as amended, and the
regulations promulgated pursuant thereto, and Buyer has no obligation under
Section 1445 of the U. S. Internal Revenue Code of 1986, as amended, to withhold
and pay over to the U. S. Internal Revenue Service any part of the "amount
realized" by Seller in the transaction contemplated hereby (as such term is
defined in the regulations issued under said Section 1445).

             (j) Prior Options. No prior options or rights of first refusal have
been granted by Seller to any third parties to purchase or lease any interest in
the Premises, or any part thereof, which are effective as of the execution date.

             (k) Mechanics and Materialmen. Seller will, at Closing, provide
Buyer and the Title Company with a standard Affidavit as to Liens and Parties in
Possession certified to Buyer and the Title Company or such other assurances as
shall be sufficient to cause the Title Company to delete the mechanics' liens
and parties in possession standard exceptions from the Policy to be issued to
Buyer at closing.

             (l) Hazardous-Materials. Except as disclosed and delivered to Buyer
pursuant to Paragraph 8 above:

                 (i) To the best of Seller's actual knowledge, the Premises are
free from contamination by Hazardous Materials. To the best of Seller's actual
knowledge, there is no evidence of Release of Hazardous Materials at the
Premises.

                 (ii) There has been no generation, treatment or storage of any
Hazardous Materials at the Premises by Seller or, to the best of Seller's actual
knowledge, any third person nor has any activity been conducted by Seller or, to
the best of Seller's actual knowledge, any third person at the Premises which
could have produced Hazardous Materials.

                 (iii) To the best of Seller's actual knowledge, there are no
surface impoundments, lagoons, waste piles, landfills, injection wells,
underground storage areas, tanks, storage vessels, drums, containers or other
man-made facilities at the Premises which may have accommodated Hazardous
Materials at the Premises. Neither Seller, nor to the best of Seller's actual
knowledge any third person, has stored, placed, buried or Released Hazardous
Materials at the Premises, including the soil, surface water and ground water.

                                       10
<PAGE>

                 (iv) To the best of Seller's actual knowledge, no inspection,
audit, inquiry or other investigation has been or is being conducted by any
Governmental Authority (as hereinafter defined in Paragraph 16(l)(vi) below) or
other third person with respect to the presence or discharge of Hazardous
Materials at the Premises or the quality of the air or surface or subsurface
conditions at the Premises except for Phase I environmental audits, if any,
performed on behalf of Seller or any lender of Seller, if any, copies of which
will be delivered to Buyer pursuant to this Agreement to the extent in Seller's
possession or control. Seller has not received notice that any such inspection,
audit, inquiry or investigation is pending or proposed. Seller has not received
any warning, notice, notice of violation, administrative complaint, judicial
complaint or other formal or informal notice or request for information alleging
that Hazardous Materials have been stored or Released at the Premises or that
conditions at the Premises are in violation of any Environmental Laws or
requesting information regarding the use, storage, release or potential Release
of Hazardous Materials at the Premises.

                 (vi) Definitions. For purposes of this Paragraph 17 and this
Agreement: "Environmental Laws" shall mean any federal, state or local statute,
regulation or ordinance or any judicial or administrative decree or decision,
whether now existing or hereinafter enacted, promulgated or issued, with respect
to any Hazardous Materials, drinking water, groundwater, wetlands, landfills,
open dumps, storage tanks, underground storage tanks, solid waste, waste water,
storm water runoff, waste emissions or wells. Without limiting the generality of
the foregoing, the term shall encompass each of the following statutes, and all
regulations, orders, decrees, permits, licenses and deed restrictions now or
hereafter promulgated thereunder, and any amendments and successors to such
statutes and regulations as may be enacted and promulgated from time to time:
(i) the Comprehensive Environmental Response, Compensation and Liability Act
(codified in scattered sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C.
Section 9601 et seq.) ("CERCLA"); (ii) the Resource Conservation and Recovery
Act (42 U.S.C. Section 6901 et seq.) ("RCRA"); (iii) the Hazardous Materials
Transportation Act (49 U.S.C. Section 1801 et seq.); (iv) the Toxic Substances
Control Act (15 U.S.C. Section 2061 et seq.); (v) the Clean Water Act (33 U.S.C.
Section 1251 et seq.); (vi) the Clean Air Act (42 U.S.C. Section 7401 et seq.);
(vii) the Safe Drinking Water Act (21 U.S.C. Section 349, 42 U.S.C. Section 201
and Section 300f et seq.); (viii) the National Environmental Policy Act (42
U.S.C. Section 4321 et seq.); (ix) the Superfund Amendments and Reauthorization
Act of 1986(codified in scattered sections of 10 U.S.C., 29 U.S.C., 33 U.S.C.
and 42 U.S.C.); (x) Title III of the Superfund Amendment and Reauthorization Act
(40 U.S.C. Section 1101 et seq.); (xi) the Uranium Mill Tailings Radiation
Control Act (42 U.S.C. Section 7901 et seq.); (xii) the Occupational Safety and
Health Act (29 U.S.C. Section 655 et seq.); (xiii) the Federal Insecticide,
Fungicide and Rodenticide Act (7 U.S.C. Section 136 et seq.); (xiv) the Noise
Control Act (42 U.S.C. Section 4901 et seq.); and (xv) the Emergency Planning
and Community Right to Know Act (42 U.S.C. Section 1100 et seq.).

                      "Hazardous Materials" means each and every element,
compound, chemical mixture, contaminant, pollutant, material, waste or other
substance which is defined, determined or identified as hazardous or toxic under
any Environmental Law. Without limiting the generality of the foregoing, the
term shall mean and include:

                                       11
<PAGE>

                      "Hazardous Substances" as defined in CERCLA, the Superfund
Amendments and Reauthorization Act of 1986, or Title III of the Superfund
Amendment and Reauthorization Act, each as amended, and regulations promulgated
thereunder including, but not limited to, asbestos or any substance containing
asbestos, polychlorinated biphenyls, any explosives, radioactive materials,
chemicals known or suspected to cause cancer or reproductive toxicity,
pollutants, effluents, contaminants, emissions, infectious wastes, any petroleum
or petroleum-derived waste or product or related materials and any items defined
as hazardous, special or toxic materials, substances or waste;

                      "Hazardous Waste" as defined in the Resource Conservation
and Recovery Act of 1976, as amended, and regulations promulgated thereunder;

                      Materials defined as "Hazardous Materials" in the
Hazardous Materials Transportation Act, as amended, and regulations promulgated
thereunder; and

                      "Chemical Substance or Mixture" as defined in the Toxic
Substances Control Act, as amended, and regulations promulgated thereunder.

                      "Governmental Authorities" means the United States, the
Commonwealth of Pennsylvania and any political subdivision thereof, and any and
all agencies, departments, commissions, boards, bureaus, bodies, councils,
offices, or authorities, or any instrumentality of any of them, of any nature
whatsoever for any governmental unit (federal, state, county, district,
municipal, city or otherwise) whether now or hereafter in existence.

                      "Release" shall mean any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, storing, escaping,
leaching, dumping, discarding, burying, abandoning, or disposing into the
environment in amounts or of a magnitude that would require remediation pursuant
to applicable laws, rules, statutes, ordinances and/or regulations.

         18. BUYER'S WARRANTIES, REPRESENTATIONS AND COVENANTS. Purchaser
represents and warrants to Seller as follows:

             (a) Authority. Buyer (i) is a lawfully constituted corporation,
duly organized, validly existing, and in good standing under the laws of the
State of North Carolina; (ii) has the authority and power to enter into this
Agreement and to consummate the transactions contemplated herein; and (iii) upon
execution hereof will be legally obligated as Buyer in accordance with the terms
and provisions of this Agreement.

             (b) Conflicts. The execution and entry into this Agreement, the
execution and delivery of the documents and instruments to be executed and
delivered by Buyer on the closing date, and the performance by Buyer of Buyer's
duties and obligations under this Agreement and of all other acts necessary and
appropriate for the full consummation of the purchase and sale of the Premises
as contemplated herein, are consistent with and not in violation of, and will
not create any adverse condition under, any contract, agreement or other
instrument to which Buyer is a party or any judicial order or judgment of any
nature by which Buyer is bound. On the closing date all necessary and
appropriate action will have been taken by Buyer authorizing and approving the
execution of and entry into this Agreement, the execution and delivery by Buyer
of the documents and instruments to be executed by Buyer on the closing date,

                                       12
<PAGE>

and the performance by Buyer of Buyer's duties and obligations under this
Agreement and of all other acts necessary and appropriate for the consummation
of the purchase and sale of the Premises as contemplated herein.

         19. WAIVER. The failure to enforce any particular provision of this
Agreement on any particular occasion shall not be deemed a waiver by either
party of any of its rights hereunder, nor shall it be deemed to be a waiver of
subsequent or continuing breaches of that provision, unless such waiver be
expressed in a writing signed by the party to be bound.

         20. DATE FOR PERFORMANCE. If the time period by which any right, option
or election provided under this Agreement must be exercised, or by which any act
required hereunder must be performed, or by which the closing must be held,
expires on a Saturday, Sunday or legal or bank holiday, then such time period
will be automatically extended through the close of business on the next
following business day.

         21. FURTHER ASSURANCES. The parties agree that they will each take such
steps and execute such documents as may be reasonably required by the other
party or parties to carry out the intent and purposes of this Agreement.

         22. SEVERABILITY. In the event any provision or portion of this
Agreement is held by any court of competent jurisdiction to be invalid or
unenforceable, such holding will not effect the remainder hereof, and the
remaining provisions shall continue in full force and effect to the same extent
as would have been the case had such invalid or unenforceable provision or
portion never been a part hereof.

         23. INTENTIONALLY DELETED.

         24. AUTHORITY. The undersigned officers of Seller and Buyer hereby
represent, covenant and warrant that all actions necessary by their respective
Boards of Directors, shareholders, general partners and partners, as the case
may be, will have been obtained and that they will have been specifically
authorized to enter into this Agreement and that no additional action will be
necessary by them in order to make this Agreement legally binding upon them in
all respects. Buyer and Seller covenant to provide written evidence of
compliance with this Paragraph 22 prior to or at Closing.

         25. SUCCESSORS AND ASSIGNS. The designation Seller and Buyer as used
herein shall include said parties, their heirs, successors, and assigns, and
shall include the singular, plural, masculine, feminine or neuter as required by
context.

         26. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties and shall become a binding and enforceable agreement among
the parties hereto upon the full and compete execution and unconditional
delivery of this Agreement by all parties hereto. No prior verbal or written
agreement shall survive the execution of this Agreement. In the event of an
alteration of this Agreement, the alteration shall be in writing and shall be
signed by all the parties in order for the same to be binding upon the parties.

         27. TAX DEFERRED EXCHANGE. The sale and purchase of the Premises may,
at Seller's and/or Buyer's option, be structured, in whole or part, as a
like-kind or tax-free exchange under Section 1031 of the Internal Revenue Code
of 1986, as amended. Each party will, at the other party's request, reasonably
cooperate in structuring the method of sale and purchase and will timely take

                                       13
<PAGE>

all action necessary for the transaction to qualify as a like-kind or tax-free
exchange and so as to cause no delay in the Closing hereunder. The party
effecting a like-kind or tax-free exchange shall be responsible for any and all
costs incurred by the other party in connection therewith (including, without
limitation, reasonable attorneys' fees) and the other party shall not be
obligated to take title to any exchange property.

         28. AS IS.

             (a) Except as otherwise expressly provided herein, Buyer hereby
acknowledges that the Premises is being sold "AS-IS, WHERE-IS, AND WITH ALL
FAULTS."

             (b) This Agreement, as written, contains all the terms of the
agreement entered into between the parties as of the date hereof, and Buyer
acknowledges that, except as otherwise expressly provided and set forth in this
Agreement, neither Seller nor any affiliates of Seller, nor any of their
respective agents or representatives, nor Broker has made any representations or
held out any inducements to Buyer, and Seller hereby specifically disclaims any
representation, oral or written, past, present or future, other than those
expressly set forth in this Agreement. Without limiting the generality of the
foregoing, Buyer has not relied on any representations or warranties, and
neither Seller nor any affiliates of Seller, nor any of their respective agents
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 (i)
the status of title to the Premises, (ii) the current or future real estate tax
liability, assessment or valuation of the Premises; (iii) the potential
qualification of the Premises for any and all benefits conferred by applicable
law whether for subsidies, special real estate tax treatment, insurance,
mortgages or any other benefits, whether similar or dissimilar to those
enumerated; (iv) the nature and extent of any right-of-way, lease, possession,
lien, encumbrance, license, reservation, condition or otherwise; (v) the
availability of any financing for the purchase, alteration, rehabilitation or
operation of the Premises from any source, including, without limitation, any
government authority or any lender; or (vi) the current or future use of the
Premises, including, without limitation, the premises use for commercial,
manufacturing or general office purposes.

             (c) Buyer acknowledges and agrees that (i) any reports or other
information regarding the Premises delivered or made available to Buyer and
Buyer's representatives by Seller or Seller's affiliates, or any of their
respective agents or representatives, pursuant to or in accordance with
Paragraph 8 hereof or this Agreement (collectively, the "Premises Information")
may have been prepared by third parties and may not be the work product of
Seller and/or any of Seller's affiliates; (ii) neither Seller nor any affiliate
of Seller has made any independent investigation or verification of, or has any
knowledge of, the accuracy or completeness of the Premises Information; (iii)
the Premises Information delivered or made available to Buyer and Buyer's
representatives is furnished to each of them at the request, and for the
convenience of, Buyer; (iv) Buyer is relying solely on its own investigations,
examinations and inspections of the Premises and those of Buyer's
representatives and is not relying in any way on the Premises Information
furnished by Seller or any affiliates of Seller, or any of their respective
agents or representatives; and (v) Seller expressly disclaims any
representations or warranties with respect to the accuracy or completeness of
the Premises Information.

                                       14
<PAGE>

             (d) The provisions of this Section 26 shall survive the termination
of this Agreement and the Closing.

         29. ESCROW INSTRUCTIONS. The Title Company shall accept the Deposit,
hold the same in escrow (in an interest-bearing escrow account acceptable to
Buyer and Seller) and release and deliver the same in accordance with the
provisions of this Agreement. In that regard, the Title Company shall deliver
the Deposit to Seller or Buyer, as the case may be, as follows:

             (a) to Seller, upon Closing pursuant to this Agreement; or

             (b) to Seller, after receipt of Seller's demand and notice of
default given to Buyer and the Title Company in which Seller certifies either
that (i) Buyer has defaulted under the Agreement, or (ii) the Agreement has been
otherwise terminated or cancelled, and Seller is thereby entitled to receive the
Deposit, except that the Title Company shall not honor Seller's demand until
more than ten (10) days after the Title Company has given a copy of Seller's
demand and notice to Buyer and the Title Company has received no notice from
Buyer within such ten (10)-day period objecting to same; or

             (c) to Buyer, after receipt of Buyer's demand and notice given to
Seller and the Title Company in which Buyer certifies either that (i) Seller has
defaulted under the Agreement, or (ii) the Agreement has been otherwise
terminated or cancelled, and Buyer is thereby entitled to receive the Deposit,
except that the Title Company shall not honor Buyer's demand until more than ten
(10) days after the Title Company has given a copy of Buyer's demand and notice
to Seller and the Title Company has received no notice from Seller within such
ten (10)-day period objecting to same.

         The Title Company assumes no liability under this Agreement other than
that of a stakeholder. If there is any dispute as to whether the Title Company
is obligated to deliver funds or as to whom such funds are to be delivered or if
any notice of objection is timely delivered to the Title Company as provided in
(b) and (c) above, the Title Company shall not be obligated to make any delivery
thereof, but may hold the same until receipt by the Title Company of an
authorization in writing signed by all parties to such dispute, directing the
disposition of such funds. In the absence of such authorization, the Title
Company may hold such funds until the final determination of the rights of the
parties in an appropriate proceeding. If such written authorization is not
given, or proceedings for such determination are not timely begun and diligently
pursued, the Title Company shall not be required to, but may, bring an
appropriate action or proceeding for leave to deposit such funds in Court,
pending such determination. No provisions of this Agreement shall be construed
to relieve the Title Company of any obligations or liabilities which may now
exist or hereafter accrue by virtue of any writing other than this Paragraph 29.

         30. HEADINGS. The paragraph headings are included for convenience only
and shall not be used in connection with the interpretation of this Agreement.

         31. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania.

         32. BINDING EFFECT. This Agreement is binding upon and inures to the
benefit of the parties hereto and their respective successors and permitted
assigns.

                                       15
<PAGE>

         33. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all of which
taken together shall constitute one and the same single instrument.

         34. RELA ADMONITION. Buyer acknowledges that at the time of the
execution of this Agreement, Buyer is advised by this writing that Buyer should
have an abstract covering the Premises examined by an attorney of Buyer's own
selection, or that Buyer should be furnished with or obtain an Owner's Policy of
Title Insurance.

         35. ZONING CERTIFICATION. Seller warrants that the Premises is now or
will, on or prior to the Closing Date, be zoned in such manner so as to permit
the commercial use of the Premises and certifies that the zoning under the
Zoning Ordinance of the Township of Union is ___.

         36. COAL NOTICE. NOTICE - THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER,
INCLUDE OR INSURE THE TITLE TO THE COAL AND RIGHT OF SUPPORT UNDERNEATH THE
SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH
COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL OF SUCH COAL AND, IN THAT
CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING
OR OTHER STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF THIS NOTICE DOES NOT
ENLARGE, RESTRICT OR MODIFY ANY LEGAL RIGHTS OR ESTATES OTHERWISE CREATED,
TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT. [THIS NOTICE IS SET FORTH
IN THE MANNER PROVIDED IN SECTION 1 OF THE ACT OF JULY 17, 1957, P.L. 984, AS
AMENDED, AND IS NOT INTENDED AS NOTICE OF UNRECORDED INSTRUMENTS, IF ANY.]

         37. SEWERAGE CERTIFICATION. The Pennsylvania Sewage Facilities Act of
January 24, 1966, No. 537 P.L. 1535, as amended, requires that there be a
statement regarding the availability of a community sewage provision:

         _____    (a) The Premises is serviced by a community sewage system
                      (If the Premises is not so serviced check (b) or (c)
                      below.)

         _____    (b) Buyer is hereby advised that there is no currently
                      existing community sewage system available to the
                      Premises. There is a permit for the operation of an
                      individual sewage system for the Premises, and said permit
                      has been exhibited by Seller to Buyer.

         _____    (c) Buyer is hereby advised that there is no currently
                      existing community sewage system available to the Premises
                      and that a permit for an individual sewage system will
                      have to be obtained from the appropriate local agency
                      pursuant to the Pennsylvania Sewage Facilities Act. Buyer
                      should contact the appropriate local agency which
                      administers the Pennsylvania Sewage Facilities Act, which
                      is the Union Township sewage officer, before signing this
                      Agreement to determine the procedures and requirements for
                      obtaining a permit for an individual sewage system.

                      [Signatures Appear on Following Page]

                                       16
<PAGE>

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

ATTEST:                                    SELLER:
                                           MARK TWELVE ASSOCIATES, L.P., a
                                           Pennsylvania limited partnership

                                           By: New Castle Fifty Realty Corp., a
                                               Pennsylvania corporation, its
                                               General Partner

                                           By:
-------------------------------------      -------------------------------------
Name:  Robert Masters                      Name:  Kenneth F. Bernstein
Title: Secretary                           Title: President

ATTEST:                                    BUYER:

                                           LOWE'S HOME CENTERS, INC.

_____________________________________      By:__________________________________
Name:________________________________      Name:________________________________
Title:_______________________________      Title:_______________________________

         (CORPORATE SEAL)

The undersigned joins in the execution
of this Agreement to Sell and Purchase
Real Estate solely for the purpose of
agreeing to act as escrow agent pursuant
to Paragraph 29 hereof and to abide by
the provisions thereof and of Paragraph
3 hereof.

COMMONWEALTH LAND TITLE INSURANCE COMPANY
         (Title Company)

By:________________________________________
Name:______________________________________
Title:_____________________________________

                                       17
<PAGE>

                                   EXHIBIT "A"

                                    SITE PLAN

                                       18
<PAGE>

                                   EXHIBIT "B"

                               SURVEY REQUIREMENTS

I.   BOUNDARY SURVEY AND SEPARATE LEGAL DESCRIPTION

     Lowe's requires an ALTA land survey, accompanied by the attached Schedule B
     Surveyor's Report Form. The survey should be certified and sealed according
     to Schedule C, entitled "Minimum Standard Detail Requirements For ALTA/ACSM
     Land Title Surveys" as per the most currently adopted requirements. The
     survey should be an Urban Class Survey as defined in these requirements and
     should include Items 1 - 11 and Item 13 of Table A thereof.

     The certification shown below, should appear on the face of all survey
     prints with both an original signature and seal. The surveyor must fill in,
     sign and certify four (4) copies of the enclosed Surveyor's Report Form,
     together with the survey prints.

     A. Entitle the survey and description "Survey for Lowe's Home Centers,
        Inc.".

     B. Use scale of one (1) inch equals one hundred (100) feet (if applicable).

     C. Reference description and plat, to a clearly definable point away from
        the property. Example: Intersection of two right-of-ways, etc.

     D. Clearly mark the property corner designated as the point-of-beginning
        using "P.O.B.".

     E. Clearly show all adjacent property owners on Boundary Survey.

     F. Clearly show acreage within the confines of the property to the nearest
        one hundredth of an acre.

     G. Regarding adjacent right-of-ways:

        1.  Clearly define right-of-ways on Boundary Survey. Example: "North
            right-of-way", "East right-of-way", etc.

        2.  Clearly mark centerlines as "CL".

        3.  Clearly show right-of-way widths, both from centerline and total
            width.

     H. Show all easements crossing property and:

        1.  Clearly define type of easement. Example: Electrical, sewer, etc.

        2.  Clearly mark centerlines as "CL" (if applicable).

        3.  Clearly show easement widths, both from centerline and total width.

                                       19
<PAGE>

        4.  Within or directly adjacent to each easement, show the recording
            information. Example: Book 285, Page 163.

     I. Prepare Metes and Bounds description on a separate sheet of paper from
        Boundary Survey.

     J. Forward a mylar sepia or other reproducible copy and four (4) copies of
        the Boundary Survey, all signed and sealed.

     K. Forward four (4) copies of the Metes and Bounds description, all signed
        and sealed.

     L. Forward four (4) copies of the Surveyor's Report, all signed and sealed.

     M. All surveys and descriptions must be prepared in recordable form.

        NOTE: Any bearing, distance, lot line, section or township number,
        County or State name, street name, recording data, etc., included in the
        Metes and Bounds description must also be shown on the Boundary Survey
        itself. In short, any items included in the Metes and Bounds description
        must be clearly shown on the Boundary Survey.

     N. Our title insurance company will forward to you a copy of the title
        insurance commitment and the exceptions. Please prepare an index on the
        face of the survey itemizing each exception listed on Schedule B-Section
        2 in the commitment. The index should be prepared with the following
        guidelines:

        INDEXING THE EXCEPTIONS ON THE SURVEY:

        1.  State if the exception affects or does not affect the property
            surveyed;
        2.  State if the exception cannot be described;
        3.  State if the exception is a blanket easement; and
        4.  When indexing the exception, state to whom the exception is to (with
            the recording Book and Page).

EXAMPLE:

1.   Blanket easement granted unto XYZ Power Company affecting all parcels (or
     be specific as to which parcel it does affect), D.B. 29, Page 89
     (unplottable).

2.   Twenty foot access easement to John and Mary Jones affecting Parcel B, D.B.
     31, Page 90 (Drawn).

                                       20
<PAGE>

DRAWING THE EXCEPTIONS ON THE SURVEY:

o    Draw every exception in the title commitment and reference it with the Deed
     Book and Page, and the number where it is itemized in the index.

EXAMPLE:

________________________________________________________________________________

________________________________________________________________________________
                               20' Access Easement
                               D.B. 31, Page 90
                               See Index Note 2

II.  We will notify you of the attorney examining the title and you should
     provide four (4) copies of the Boundary Survey and the Surveyor's Report to
     that attorney.

III. You should certify the four (4) copies of the Survey with an original seal
     to the following entities:

A.   Lowe's Home Centers, Inc.
B.   Title company

The following certifications should be provided in addition to the required
ALTA/ACSM certification in the format below:

The undersigned hereby certifies to _________________________________ that this
survey was actually made upon the ground; that it and the information, courses,
angles and distances shown thereon are correct; that this survey correctly shows
the location of all buildings, structures and other improvements on the
Premises, including, without limitation, all streets, easements, rights-of-way
and utility lines; and that, except as shown, there are no (a) easements or
rights-of-way across the Premises; (b) party walls, (c) encroachments on
adjoining premises, streets or alleys of any of said buildings, structures or
improvements, or (d) encroachments upon the Premises by any building, structure
or other improvements situated on any adjoining premises; physical evidence of
boundary lines on all sides of the Premises is as stated on the survey; and that
the improvements do not violate any set-back or other building lines.

I hereby certify that this survey has been made using the latest recorded plat
or deed, that there are no encroachments other than those shown, and that the
survey is correct to the best of my knowledge and belief.

In addition, the surveys provided pursuant to this paragraph must contain a
Flood Zone Certification. Those surveys should be sent directly to the Lowe's.

I hereby certify that the ___________________________ project, shown hereon does
or does not lie within a special flood hazard zone according to
___________________________________ of the Flood Insurance Rate Map of
______________________ dated ________________ and noted as zone _______ (also
include year flood) to the best of my knowledge and belief.

                                       21
<PAGE>
                                   EXHIBIT "C"

                                  RESTRICTIONS

Use Restrictions.

         (a) During the term of this Declaration no portion of the Properties
may be used for any of the following purposes without the written consent of
Seller and Lowe's:

             (i) A tavern, bar, nightclub, discotheque or any other
establishment selling alcoholic beverages for on-premises consumption; provided,
however, that the foregoing shall not preclude the operation of a restaurant
where the sale of alcoholic beverages therein comprises less than fifty percent
(50%) of the restaurant's gross revenue.

             (ii) A bowling alley or game room.

             (iii) A theater (motion picture or live performance).

             (iv) A health club or spa, except that a health club or spa of no
more than 10,000 square feet shall be permitted so long as it is located at
least 400 feet from the Premises.

             (v) A gas station, service station or truck stop, except that a
convenience store selling gasoline and oil products shall be permitted on the
Outparcels only; provided, however, that such convenience store shall be
operated by a national or regional operator and shall not offer automotive
services or repairs; and, provided further, that the Owner of the Outparcel
shall at all times keep and maintain the Outparcel and the improvements thereon
in a neat, clean, orderly and first-class condition.

             (vi) A flea market, auction house, or second hand or surplus store.

             (vii) A church, meeting hall, school or employee training facility,
except that a Sylva or comparable learning center of no more than 5,000 square
feet shall be permitted so long as it is located at least 400 feet from the
Premises and does not provide or permit bus service on the Properties.

             (vii) A car wash, except that a full-service car wash shall be
permitted on an Outparcel so long as the improvements on such Outparcel are
designed in a manner which shall not permit any stacking of vehicles on the
access drives and roads adjacent to said Outparcel or otherwise on property
outside of said Outparcel.

             (viii) A dry cleaning plant or central laundry or laundromat.

             (ix) A facility used for the sale, rental, repair, storage or
service of new or used cars, trucks, motorcycles, trailers, mobile homes or
recreational vehicles or other motor vehicles.

         (b) During the term of this Declaration no portion of the Properties
may ever be used for any of the following uses whatsoever:

             (i) An adult type bookstore or other establishment selling,
displaying or exhibiting pornographic materials or providing adult type
entertainment or displays of a variety involving or depicting nudity or lewd
acts.

             (ii) A massage parlor.

             (iii) A skating rink.

             (iv) A mortuary or funeral parlor.

             (v) A mobile home or trailer court, labor camp, junkyard or
stockyard.

             (vi) A land fill, garbage dump or for the dumping, disposing,
incineration or reduction of garbage.

             (vii) An off-track betting parlor, carnival or amusement park.

             (viii) A manufacturing, distillation, smelting, refining,
industrial, agricultural, drilling, mining or quarrying operation (provided,
however, that assembling or manufacturing incidental to a permitted retail use
shall be permitted).

                                       22
<PAGE>
             (ix) A plasma center or a center for medical procedures, counseling
or activities primarily relating to abortion, birth control or euthanasia
(except that this prohibition shall not be applicable to a general medical
office or facility which may include, but is not primarily related to, such
activities or any dental office or facility as the same may be found in similar
regional shopping centers); or

             (x) A warehouse (other than indoor storage incidental to a
permitted retail use operating on the Shopping Center) or "mini-storage" use or
operation.

             (xi) Living quarters, sleeping apartments or lodging rooms.

             (xii) A veterinary hospital or animal raising facility.

Use Restrictions on the Seller Property. No portion of Seller Property shown on
the Site Plan may be used for the following purposes (provided that such
restrictions shall only apply to Seller Property for a period of time not to
exceed two (2) years after the Lowe's Property is no longer used by Lowe's as a
retail and/or warehouse home improvement center, home improvement service
center, lumber yard or building materials supply center):

         (a) A hardware store containing more than 5,000 square feet of useable
floor area.

         (b) A lawn and garden store containing more than 5,000 square feet of
useable floor area.

         (c) A paint and/or decor center containing more than 5,000 square feet
of useable floor area.

         (d) A retail and/or warehouse home improvement center, lumber yard,
building materials supply center, home improvement service center and other
stores or centers similar to those operated by Lowe's, Home Depot, Home Owner's
Warehouse, Home Quarters, Hechinger's, Builders Square, 84 Lumber, Wickes,
Hughes Lumber, McCoys, Home Base, Eagle, Menard's, Sears Hardware, Sutherlands,
Orchard Supply and Payless Cashways.

         These restrictions shall not apply to any tenants existing on Seller's
Property as of the date hereof nor their successors and assigns in interest to
such leases.

         These restrictions or exclusive rights shall also apply to prohibit a
larger business having space in its store devoted to selling the merchandise
described in subparagraphs (a) through (c) when such space exceeds the
limitations of subparagraphs (a) through (c). Subject to these restrictions,
Seller reserves the right to subdivide, convey, lease or assign the Seller
Property or any portion thereof through any means including, but not limited to,
subdivision, lease, ground lease, condominium declaration or air-lot condominium
declaration.

Outparcel Development. Any Outparcel sold or developed on the Properties will
only be developed under the following guidelines:

         (a) Any building constructed on any of the Outparcels shall not exceed
10,000 square feet, shall be self-supporting with respect to parking and shall
contain not less than five (5) paved full size automobile parking spaces for
each 1,000 square feet of Building floor area constructed thereon (or the number
of parking spaces required by applicable law, whichever is greater); provided,
however, that ten (10) paved full size automobile parking spaces for each 1,000
square feet of Building floor area constructed thereon (or the number of parking
spaces required by applicable law, whichever is greater) will be required for
restaurants; and, provided further, that twelve (12) paved full size automobile
parking spaces for each 1,000 square feet of Building floor area constructed
thereon (or the number of parking spaces required by applicable law, whichever
is greater) will be required for restaurants serving alcohol.

         (b) Any building constructed on any of the Outparcels shall not exceed
one (1) story and 24 feet in height, as measured from the finished elevation of
the parking area of the Properties, except that the prototypical architectural
features of a national or regional occupant may extend above such height
limitation provided that such building and architectural features do not exceed
an aggregate height of 33 feet as measured from the finished elevation of the
parking area of the Properties.

                                       23
<PAGE>

         (c) Any rooftop equipment installed on any Outparcel shall be screened
in a manner reasonably satisfactory to Seller and Lowe's;

         (d) No rooftop signs shall be erected on any building constructed on
any Outparcel.

         (e) No more than two (2) freestanding signs may be erected on each
Outparcel, but in no event shall such freestanding signage exceed five feet in
height or block the visibility of the Lowe's building or signs.

         (f) Any Outparcel shall be kept neat, orderly, planted in grass and
trimmed until improved and constructed.

         (g) Any building, structure, or improvement constructed on any of the
Outparcels shall be used for retail, restaurant, medical or office purposes
only. Banks and financial institutions shall be deemed retail purposes subject
to the further limitations set forth in Section __.

         (h) Any party or independent owner purchasing or leasing from Seller
and having an ownership or leasehold interest in an Outparcel shall repair any
damage caused to any of the utility facilities, as described in this Section of
this Declaration, serving the Properties and the Outparcel caused by such party,
or a lessee or user of the Outparcel, to the extent the Outparcel benefits from
any of the utility facilities serving the Properties and the Outparcel.

         (i) Any of the restrictions set forth in this Section may be waived,
amended, modified, released, or terminated in writing at any time and from time
to time by Seller and Lowe's; provided that either Party shall not waive, amend,
modify, release, or terminate this Declaration without the prior written consent
of the other Party. However, Seller and/or Lowe's, as the case may be, shall not
amend or modify any of the foregoing restrictions if any such amendment or
modification would impose additional restrictions on an Outparcel without the
prior written consent of the fee owner of the Outparcel. The fee owner of such
Outparcel, however, may impose additional, restrictions on an Outparcel as such
fee owner deems appropriate, subject to any exceptions thereto imposed on said
fee owner at the time of conveyance of said Outparcel by Seller to said fee
owner.

         (j) Seller may subdivide, convey, lease or assign any Outparcel or any
portion thereof through any means including, but not limited to, subdivision,
lease, ground lease, condominium declaration or air-lot condominium declaration.

         (k) The foregoing restrictions and agreements are imposed on each of
the Outparcels for the benefit of the Properties. The agreements, restrictions
and covenants herein made shall be deemed restrictive covenants running with the
land and shall be binding upon each of the Outparcels and any person who may
from time to time own, lease, or otherwise have an interest in any of the
Outparcels.

                                       24
<PAGE>

                                   EXHIBIT "D"

                        EXCLUSIVE RIGHTS AND RESTRICTIONS

Hills Lease:
-----------

         1.  No discount department store containing 30,000 square feet or more
             or no deep discount drug store containing 30,000 square feet or
             more.

         2.  No supermarket shall devote more than 30,000 square feet to general
             merchandise categories.

         3.  No supermarket shall have a sit-down restaurant.

         4.  Only one pylon sign for the Shopping Center.

Peebles Lease:
-------------

         1.  No outdoor sales area or kiosk.

         2.  No store larger than Peebles to be in full line department store,
             such as those operated by Belk, Legget, J. C. Penney, Dillard's of
             The May Company or any store larger than 15,000 square feet as a
             so-called "of-price" retail store (a store selling at retail brand
             name merchandise at less than the full retail price on a regular
             basis) such as T> J. Maxx, Stein Mart, Lochmann, Kohl's, Burlington
             Coat Factory or Goody's.

Sears Lease:
-----------

         1.  No pylon signs except as shown on Exhibit A to the Sears Lease.

                                       25<PAGE>
                                                                   EXHIBIT 10.48

                       AMENDED AND RESTATED MORTGAGE NOTE

                                                     Date of Note: July 19, 2000

     FOR VALUE RECEIVED, Port Bay Associates, LLC, a New York limited liability
company ("Maker"), does hereby covenant and promise to pay to the order of Fleet
Bank, National Association, a national banking association ("Payee"), at 1133
Avenue of the Americas, New York, New York 10036, or at such other place as
Payee may designate to Maker in writing from time to time, in lawful money of
the United States of America and in immediately available funds, the lesser of
the principal sum of Ten Million and 00/100 ($10,000,000.00) Dollars (the
"Principal Amount") or the Principal Amount from time to time outstanding
hereunder and to pay interest on the Principal Amount from time to time
outstanding hereunder and such other charges, costs and fees set forth under the
Loan Documents in like money and funds as hereinafter provided.

     1. Definitions. The following terms, as used in this Note, shall have the
meanings indicated opposite them and terms capitalized herein and not otherwise
defined herein but defined in the Mortgage shall have the meaning set forth in
the Mortgage:

     "Acadia" shall mean Acadia Realty Trust, a Maryland real estate investment
     trust with offices at 20 Soundview Marketplace, Port Washington, New York
     11050, and its successors and/or assigns.

     "Accounting Principles" shall mean the accounting principles utilized in
     the preparation of the operating statements for the Mortgaged Premises
     heretofore delivered to Payee.

     "Additional Advance" or "Earn-Out" shall have the meaning assigned to such
     term in PARAGRAPH 5 of this Note.

     "Applicable Rate" either the Floating Rate Option or the LIBOR Option in
     effect at any given time.

     "Appraised Value" shall mean the appraised value of the Mortgaged Premises,
     as determined by an independent appraiser selected by Payee and reasonably
     acceptable to Maker. Payee may require that such an appraisal be performed
     at any time. Appraised Value shall be determined utilizing an appraisal
     method consistent with that used in determining the Appraised Value for
     Payee in connection with this Loan. Maker shall solely be responsible for
     the cost of up to one appraisal per annum if requested by Payee.

     "Authorized Representative" - shall mean Perry Kamerman, Arnold
     Wachsberger, Maggie Hui, Robert Masters or any other person or persons
     designated by Maker, in a writing delivered to Payee, as an Authorized
     Representative.

                                       1

<PAGE>

     "Business Day" -As used herein the "Modified Following Business Day
     Convention" shall mean the convention for adjusting any relevant date if it
     would otherwise fall on a day that is not a Business Day. The following
     terms, when used in conjunction with the term "Modified Following Business
     Day Convention", and a date, shall mean that an adjustment will be made if
     that date would otherwise fall on a day that is not a Business Day so that
     date will be the first following day that is a Business Day. A "Business
     Day" means, in respect of any date that is specified in this Note to be
     subject to adjustment in accordance with applicable Business Day
     Convention, a day on which commercial banks settle payments in (i) London
     if the payment obligation is calculated by reference to any LIBOR rate, or
     (ii) New York, if the payment obligation is calculated by reference to any
     prime rate.

     "Change in Control" shall mean and include any of the following:

          (i) the full time active employment of Ross Dworman as chief executive
     officer of Acadia and of Kenneth F. Bernstein, as President of Acadia,
     shall be voluntarily terminated by Acadia or shall otherwise cease, unless
     a successor acceptable to Payee shall have been appointed or elected and
     actually taken office within three months following any such termination or
     cessation, in which case the name of such successor shall be substituted
     for the name of the person he or she replaces for purposes of this clause
     (i);

          (ii) the shareholders of Acadia approve a plan of complete liquidation
     of Acadia or an agreement or agreements for the sale or disposition by
     Acadia of all or substantially all of Acadia's assets; and/or

          (iii) any "change in control" or any similar term as defined in any of
     the indentures, credit agreements or other instruments governing any
     indebtedness of Acadia or any of its affiliates.

     "Default" - shall mean any act or condition which with the giving of notice
     or the lapse of time, or both, could become an Event of Default.

     "Extended Maturity Date" shall mean the then applicable extended maturity
     date pursuant to PARAGRAPH 3 of this Note.

     "Event of Default" shall have the meaning assigned to such term in SECTION
     6.1 of the Mortgage and PARAGRAPH 33 of this Note.

                                       2
<PAGE>

     "Floating Rate Option" shall mean the Prime Rate, floating plus fifty basis
     points (.50%).

     "Full Force and Effect" shall mean, as to any lease, that such lease shall
     be in full force and effect, there shall be no material default by the
     tenant thereunder or default by the landlord thereunder or other act or
     condition or circumstance giving or which may give, without the giving of
     any further notice, the tenant or the landlord the right to terminate any
     lease and, if requested by Payee and required by its lease, the tenant
     shall have delivered to Payee an estoppel certificate in form and substance
     reasonably satisfactory to Payee.

     "Guarantor" shall mean, individually, jointly, severally and collectively,
     the Maker and Managing Member.

     "Guaranty" or "Indemnity" means, individually, jointly, severally and
     collectively, (i) that certain indemnity agreement dated of even date
     hereof by the Indemnitor in favor of Payee, as the same may be extended and
     or otherwise modified from time to time, (ii) that certain hazardous
     material guaranty and indemnity agreement dated of even date hereof by the
     Indemnitor in favor of Payee, as the same may be extended and or otherwise
     modified from time to time, (iii) that certain ADA guaranty and indemnity
     agreement dated of even date hereof by the Indemnitor in favor of Payee, as
     the same may be extended and or otherwise modified from time to time.

     "Interest Period" with respect to LIBOR Advances, a period of 30, 60, 90,
     120 or 180 days (or such other periods as Payee may elect to make
     available); provided, however, that no such period shall extend beyond the
     Maturity Date. Any Interest Period which terminates on a non-Business Day
     shall be deemed, for purposes hereof, to terminate on the next succeeding
     Business Day.

     "LIBOR Advance" an advance with respect to which the Principal Amount bears
     interest at the LIBOR Option.

     "LIBOR Option" shall mean a rate per annum equal to one hundred
     seventy-five basis points (1.75%) plus the LIBOR Rate with respect to the
     applicable Interest Period. The term "LIBOR" shall mean, as applicable to
     any LIBOR Advance, the rate per annum (rounded upward, if necessary, to the
     nearest 1/32 of one percent) as determined on the basis of the offered
     rates for deposits in U.S. dollars, for a period of time comparable to such
     LIBOR Advance which appears on the Telerate page 3750 as of 11:00 a.m.
     London time on the day that is two (2) London Banking Days preceding the
     first day of such LIBOR Advance; provided, however, if the

                                       3
<PAGE>

     rate described above does not appear on the Telerate System on any
     applicable interest determination date, the LIBOR rate shall be the rate
     (rounded upwards as described above, if necessary) for deposits in dollars
     for a period substantially equal to the interest period on the Reuters Page
     "LIBO" (or such other page as may replace the LIBO Page on that service for
     the purpose of displaying such rates) as of 11:00 a.m. (London Time) on the
     day that is two (2) London Banking Days prior to the beginning of such
     interest period. "Banking Day" shall mean, in respect of any city, any date
     on which commercial banks are open for business in that city.

     If both the Telerate and Reuters system are available Telerate and Reuters
     system are available, then the rate for that date will be determination the
     basis of the offered rates for deposits in U.S. dollars for a period of
     time comparable to such LIBOR advance which are offered by four major banks
     in the London interbank market at approximately 11:00 a.m. London time, on
     the day that is two (2) London Banking Days preceding the first day of such
     LIBOR Advance as selected by the calculation agent. The principal London
     office of each of the four major London banks will be requested to provide
     a quotation of its U.S. dollar deposit offered rate. If at least two such
     quotations are provided, the rate for that date will be the arithmetic mean
     of the quotations. If fewer than two quotations are provided as requested,
     the rate for that date will be determined on the basis of the rated quoted
     for loans in U.S. dollars to leading European banks for a period of time
     comparable to such LIBOR Advance offered by major banks in New York City at
     approximately 11:00 a.m. New York City time, on the day that is two (2)
     London Banking Days preceding the first day of such LIBOR Advance. In the
     event that Payee is unable to obtain any such quotations as provided above,
     it will be deemed that LIBOR pursuant to a LIBOR Advance cannot be
     determined. In the event that the Board of Governors of the Federal Reserve
     System shall impose a Reserve Percentage with respect to LIBOR deposits of
     Bank then for any period during which such Reserve Percentage shall apply,
     LIBOR shall be equal to the amount determined above divided by an amount
     equal to 1 minus the Reserve Percentage. "Reserve Percentage" shall mean
     the maximum aggregate reserve requirement (including all basic,
     supplemental, marginal and other reserves) which is imposed on member banks
     of the Federal Reserve System against "Euro-currency Liabilities as defined
     in Regulation D.

     "LIBOR Acceptance Notice" shall have the meaning assigned to such term in
     PARAGRAPH 4(b) hereof.

     "LIBOR Notice" Maker's telephonic notice immediately confirmed in writing,
     which writing may be delivered by telecopier, stating that Maker,

                                       4
<PAGE>

     subject to delivery by it of a LIBOR Acceptance Notice, elects to pay
     interest on the whole or a portion of the Principal Amount at the LIBOR
     Rate, as specified in such Notice, and specifying the applicable Interest
     Period for the LIBOR Advance and the Business Day on which such Interest
     Period is to begin.

     "Loan" loans of up to the Principal Amount made and/or to be made to Maker
     by Payee and evidenced hereby.

     "Loan Documents" means the Demand Note, the Note Modification Agreement,
     this Note, the Demand Mortgage, the Agreement of Consolidation of Notes and
     Mortgages and Modification of the Consolidated Mortgage, the Guaranty, the
     Assignment of Leases and Rents and all other documents, including, without
     limitation, collateral documents, security agreements, UCC financing
     statements, assignments of leases and rents, guaranties, indemnities and
     any other document, mortgage, agreement, assignment or other instrument
     executed by Maker and/or Indemnitor, as the case may be, or any other third
     party pursuant hereto or thereto or in connection herewith or in connection
     with the loan evidenced by this Note and secured by this Mortgage, as the
     same may be extended and or otherwise modified from time to time.

     "Managing Member" shall mean Acadia Realty Limited Partnership, a Delaware
     limited partnership having an office at 20 Soundview Marketplace, Port
     Washington, New York 11050, and its successors and/or assigns.

     "Maturity Date" shall mean the then applicable maturity date pursuant to
     PARAGRAPH 3 of this Note.

     "Mortgage" that certain Agreement of Consolidation of Notes and Mortgages
     and Modification of the Consolidated Mortgage dated as of even date hereof,
     including all exhibits thereto, by and between Maker and Payee in the
     principal sum of $10,000,000, as the same may be amended or modified from
     time to time. Whenever a section of the Mortgage is referred to herein, it
     shall mean the sections contained in the Exhibit C to the Mortgage.

     "Mortgaged Premises" or "Mortgaged Property" shall have the meaning
     assigned to such term in the Mortgage.

     "Net Operating Income" shall mean, with respect to the applicable period,
     the aggregate rental and other receipts (unless excluded pursuant hereto)
     of the Mortgaged Premises (actual results with respect to the preceding
     six-months and pro forma with respect to the following six-months during

                                       5
<PAGE>

     such period less the aggregate amount of all operating expenses of the
     Mortgaged Premises during such period, in each case determined in
     accordance with the Accounting Principles. For purposes of the
     determination of Net Operating Income, operating expenses shall include,
     without limitation, all real estate taxes (but not in excess of the pro
     rata portion of such real estate taxes applicable to the applicable period
     covered by the statement), water and sewer charges, utility charges,
     insurance premiums (but not in excess of the amounts applicable to the
     applicable period covered by the statement), salaries and benefits of all
     employees engaged in the operation, maintenance or management of Mortgaged
     Premises, all costs of ordinary and necessary maintenance, cleaning and
     repair, costs of snow and rubbish removal and security services. Net
     Operating Income shall, however, (a) exclude from receipts all amounts paid
     to the Maker for tenant alterations in connection with the leasing of space
     at the Mortgaged Premises, all amounts payable to the Maker under leases
     with Affiliates of the Maker, as tenant, or with Maker, as tenant (unless
     the Payee otherwise agrees) and, with respect to any lease providing for a
     reduction in the rentals payable under such lease at any time during the
     term thereof, base rentals in excess of the lowest base rentals payable
     under such lease (other than during any period of rent concessions made
     with respect to consecutive monthly periods commencing with the first month
     of the term of such lease), and (b) exclude from expenses payments of
     principal and interest on this Note, capital expenditures, leasing
     commissions, and other expenses payable to the Payee pursuant to this Note
     or any of the other Loan Documents. Net Operating Income shall be
     determined without regard to extraordinary items of income and of expense.
     Each lease, the rental or other income from which was included in the
     calculations of Net Operating Income, must be in Full Force and Effect as
     of the date Net Operating Income is being determined

     "Note" shall mean this Amended and Restated Mortgage Note, as the same may
     be amended or otherwise modified from time to time.

     "Person" shall mean and include any individual corporation, partnership
     unincorporated association, trust, governmental agency or authority or
     other entity.

     "Prime Rate" shall mean the variable rate per annum so designated from time
     to time by the Payee as its Prime Rate. The Prime Rate is a reference rate
     and does not necessarily represent the lowest or best rate being charged to
     any customer. Changes in the rate of interest resulting from changes in the
     Prime Rate shall take place immediately without notice or demand of any
     kind.

                                       6
<PAGE>

     "Prime Rate Advance" an advance with respect to which the Principal Amount
     or a portion thereof bears interest at the Floating Rate Option.

     "Regulation D" - Regulation D of the Board of Governors of the Federal
     Reserve System from time to time in effect, including any successor or
     other regulation or official interpretation of said Board of Governors
     relating to reserve requirements applicable to member banks of the Federal
     Reserve System.

     2. Amortization and Interest; Facility Fee. (a) The Principal Amount of
this Note shall be payable in accordance with the following provisions:
Commencing on September 1, 2000 and on the first day of each calendar month
thereafter, Maker will pay, on account of the Principal Amount, the amount which
would be payable on a self-liquidating mortgage-style amortization schedule
based on the Principal Amount then outstanding, a loan maturity of twenty-five
(25) years and an assumed interest rate of 8.5% per annum. Upon the making of
the Additional Advance, the amortization schedule shall be recalculated such
that immediately upon the making of the Additional Advance the monthly principal
payments shall be recalculated based on the Principal Amount outstanding after
the making of the Additional Advance, a loan maturity of twenty-five years less
the number of months which have elapsed since the first amortization payment
pursuant to this PARAGRAPH 2 and an assumed interest rate of 8.5% per annum and
such revised amortization schedule shall be applicable to the payment due on the
first day of the month immediately following the making of the Additional
Advance and each month thereafter, unless and until such schedule is revised in
accordance herewith. The prepayment premium provided for in PARAGRAPH 10 hereof
shall not be applicable to any such scheduled monthly payments. Any voluntary
prepayments applied to principal shall be applied in the inverse order of
maturity.

     (b) Interest on the outstanding Principal Amount shall accrue from and
including the date of the advance to but excluding the date of any repayment or
prepayment thereof and shall be payable in arrears (i) on the first day of each
calendar month, commencing August 1, 2000, (ii) on the date of any prepayment
(on the amount prepaid), (iii) on the Maturity Date, or the Extended Maturity
Date, as the case may be (iv) after maturity (whether by acceleration or
otherwise) on demand. Interest shall be calculated on the basis of 1/360 of the
annual interest at the applicable rate on the outstanding principal balance for
each date such balance is outstanding and shall be paid for the actual number of
days elapsed, which will result in a higher effective annual rate.

     (c) Concurrently with the execution and delivery of this Note, Maker shall
pay Payee a non-refundable facility fee of $75,000.00.

     3. Maturity Date; Extended Maturity Date

     (a) The outstanding Principal Amount and all accrued and unpaid interest
thereon shall be due and payable on August 1, 2003 (the "Maturity Date").

                                       7
<PAGE>

     (b) Provided that the Maker shall have notified the Payee sixty (60) days
prior to the Maturity Date (as defined in the Note) that the Maker wishes to
extend the term of the Note and Mortgage for an additional two (2) year period
("Extended Term"), and provided that the Maker shall have paid to the Payee
thirty (30) days prior to the Maturity Date the Extension Fee equal to one
quarter of one (.25%) percent of the outstanding balance of the Note due on the
Maturity Date, and provided further that the Maker shall have complied with all
of the conditions precedent as hereinafter set forth in the next paragraphs,
this Note shall be extended for an additional two (2) year period (the "Extended
Term") so that this Note shall mature on the Extended Maturity Date, at which
time the Principal Amount and interest at the applicable Interest Rate accrued
and unpaid herein shall be due and payable. During the Extended Term, monthly
payments of interest and principal shall continue to be due and payable as set
forth in this Note.

     Notwithstanding anything to the contrary contained herein, the Payee's
obligation to extend the term of the Note and Mortgage for the Extended Term so
that this Note shall mature on the Extended Maturity Date, rather than the
Maturity Date, is conditioned upon the following:

          (i) The Payee shall have received a recently dated appraisal of the
          Mortgaged Property by an independent appraiser selected by the Payee
          and paid for by the Maker, in form and substance satisfactory to the
          Payee, which appraisal and results thereof must indicate a loan to
          value ratio of not greater than sixty-five (65%) percent.

          (ii) No default shall have occurred and be continuing under the Loan
          Documents evidencing, securing, or guaranteeing payment of, the Note.

          (iii) The "Debt Service Coverage Ratio" must be at least 1.50 to 1.
          For purposes herein, Debt Service Coverage Ratio shall mean the ratio,
          as of any date of calculation, for the immediately preceding six (6)
          month period and the immediately succeeding six (6) month period,
          calculated by dividing: (a) the Net Operating Income for the preceding
          six (6) month period and the immediately six (6) month period; by (b)
          principal and interest payments based on a 25 year self liquidating
          mortgage amortization schedule, and the 10-year treasury rate plus
          2.00% with a floor rate of 8.50%.

          (iv) All representations and warranties contained herein, or otherwise
          made in writing in connection herewith or in any of the Loan
          Documents, by or on behalf of Maker or any other Person to Payee,
          shall be true and correct, in all material respects, with the same
          force and effect as if made on and as of the date of the initial date
          of the Extended Term.

     4. Selection of Rate.

     (a) Except as provided in PARAGRAPHS 4(b), the outstanding Principal Amount
shall bear interest at a rate per annum equal to the Prime Rate Option.

                                       8
<PAGE>

     (b) Provided there is no Default and/or Event of Default under this Note,
the Loan Document(s) or any other document or instrument delivered as additional
security for this Note, Maker may elect to pay interest on the entire or any
portion of the outstanding Principal Amount (subject to the minimum amount
limitations set forth herein and the requirements set forth below) at a rate per
annum equal to the LIBOR Option for the Interest Period elected by Maker from
(and including) the first day of each Interest Period to (but not including) the
last day of such Interest Period. Maker shall, subject to delivery by it of a
LIBOR Acceptance Notice, elect that the entire or any portion of the outstanding
Principal Amount be treated as a LIBOR Advance pursuant to a LIBOR Notice. Payee
must receive such LIBOR Notice prior to 11:00 A.M., New York City time, on a
Business Day at least three (3) Business Days prior to:

          (1) the last day of an Interest Period (in the case of an outstanding
     LIBOR Advance); or

          (2) any Business Day elected by Maker in its LIBOR Notice (in the case
     of a conversion of a Prime Rate Advance to a LIBOR Advance) for the
     commencement of the applicable Interest Period.

If Maker fails to give a LIBOR Notice at least three (3) Business Days prior to
the end of an Interest Period, then, on the last day of the Interest Period, the
outstanding LIBOR Advance shall convert to a Prime Rate Advance. On the date
specified in the LIBOR Notice as the date on which the applicable Interest
Period is to begin, Payee shall notify Maker's Authorized Representative by
telephone (such notice to be promptly confirmed in writing) or by telex, which
notice shall specify the date, the proposed LIBOR Rate and the period of time on
such date during which such rate is to be available. If Payee fails to specify
the period for which such quoted rate is available, then such rate shall be
deemed to be available only for thirty minutes from the time Payee, orally or in
writing, notifies Maker's Authorized Representative of such rate. If Maker then
wishes to obtain such Loan at such LIBOR Rate, it shall promptly give notice to
Payee to such effect (the "LIBOR Acceptance Notice"), which notice shall be
irrevocable and may be by telephone, promptly confirmed in writing.

     (c) Without in any way limiting Maker's obligation to confirm in writing
any telephonic LIBOR Rate Notice or LIBOR Acceptance Notice, Payee may, prior to
receipt of written confirmation, act without liability on the basis of
telephonic notice which it believes in good faith to be from Maker and, in any
event, Payee may act without liability on the basis of telephonic or written
notice which it believes in good faith to be from Maker.

     5. Conditions to Additional Advance. Maker shall have the option, subject
to the terms and conditions of this Note, of requesting from Payee an additional
advances in increments of $200,000 each, or any integral multiple thereof, with
the aggregate amount of all such additional advances not to exceed $1,000,000
(each, every and any one of such additional advances shall be referred to herein
as the "Additional Advance"). The obligation of Payee to make the Additional
Advance hereunder is subject to the satisfaction of each of the following
conditions precedent:

                                       9
<PAGE>

          (a) An Authorized Representative shall give Payee at least ten (10)
     Business Days prior written notice, specifying the date of the proposed
     borrowing. Any such notice which is oral shall promptly be confirmed in a
     writing signed by an Authorized Representative and delivered to Payee.
     Payee may rely on any oral or written request for a Loan which Payee
     believes to be genuine and shall be fully protected in doing so without any
     requirement to make further inquiry.

          (b) After giving effect to the Additional Advance, there shall exist
     no Default and/or Event of Default, including, without limitation, default
     of the provisions set forth in SUBPARAGRAPH 9(a) or 9(b) of this Note, and,
     for this purpose, compliance with such covenants shall, prior to the making
     of the proposed Additional Advance, be recalculated (using the most
     recently available Appraised Value and Net Operating Income) as if the
     Additional Advance has been made.

          (c) All representations and warranties contained herein, or otherwise
     made in writing in connection herewith or in any of the Loan Documents, by
     or on behalf of Maker or any other Person to Payee, shall be true and
     correct, in all respects, with the same force and effect as if made on and
     as of the date of the Additional Advance.

          (d) The Payee shall have received a recently dated appraisal of the
     Mortgaged Property (less than one year old, or if older, accompanied by an
     updated limited appraisal report) by an independent appraiser selected by
     the Payee and paid for by the Maker, in form and substance satisfactory to
     the Payee, which appraisal and results thereof must indicate a loan to
     value ratio of not greater than sixty-five (65%) percent.

          (e) The "Debt Service Coverage Ratio" must be at least 1.35 to 1. For
     purposes herein, Debt Service Coverage Ratio shall mean the ratio, as of
     any date of calculation, for the immediately preceding six (6) month period
     and the immediately succeeding six (6) month period, calculated by
     dividing: (a) the Net Operating Income for the preceding six (6) month
     period and the immediately six (6) month period; by (b) principal and
     interest payments based on a 25 year self liquidating mortgage amortization
     schedule, and the 10-year treasury rate plus 2.00% with a floor rate of
     8.50%.

          (f) At the time of the payment of the Earn-out or a part thereof (with
     the Earn-out funding capped at 18 months), a continuation of title shall
     demonstrate that there are no encumbrances, unpaid Impositions or liens
     assessed against the Mortgaged Premises except for Permitted Encumbrances
     (such title continuations shall be at Maker's sole cost and expense)..

     6. Payment of Interest on and Number of LIBOR Advances. If a LIBOR Advance
is outstanding, then in addition to the monthly payments of interest required
under PARAGRAPH 2(b) hereof, all accrued and unpaid interest, if any, on such
LIBOR Advance shall be due and payable on the last day of the Interest Period.
In no event may there be more than three (3) Interest Periods in effect at any
one time, and the entire Principal Amount outstanding need not bear interest at
the same Applicable Rate.

                                       10

<PAGE>

     7. Suspension of the LIBOR. If Payee determines that Payee's making or
maintaining LIBOR Advances is unlawful for any reason, then Payee may suspend
the availability of the LIBOR Rate and immediately convert any outstanding LIBOR
Advance to a Prime Rate Advance. Payee shall immediately notify Maker of any
such conversion and Maker shall pay to Payee, on demand, (i) all accrued and
unpaid interest on the LIBOR Advance to the date of such conversion, plus (ii)
such amounts as Payee shall require to compensate it for the costs of converting
any such LIBOR Advance to a Prime Rate Advance. The certificate of Payee as to
any amounts payable pursuant to this PARAGRAPH shall, absent manifest error, be
final, conclusive and binding on Maker. No LIBOR Notices electing the LIBOR Rate
shall be given by Maker thereafter until Payee determines that LIBOR Advances
would be lawful.

     8. Increases in Cost. In the event that at any time or from time to time
any domestic or foreign requirement of law, regulation, order or decree or any
change therein or in the interpretation or application thereof or compliance by
Payee with any request or directive (whether or not having the force of law)
from any governmental, fiscal, monetary or other authority (i) does or shall
subject Payee to any tax, duty, charge or withholding on or from payments due
from Maker (excluding taxation of the income of Payee); or (ii) does or shall
impose, modify or hold applicable or change any reserve (including, without
limitation, basic, supplemental, marginal, special or emergency reserves but not
including reserve requirements already taken into account in calculating the
LIBOR Rate), special deposit, compulsory deposit or similar requirement with
respect to assets of, deposits with or for the account of, advances or loans by,
or other credit extended by, or any other acquisition of funds by Payee; or
(iii) does or shall impose on Payee any other condition or change therein and
the result of any of the foregoing is to increase the cost to Payee of making
available to Maker, converting from or to, or maintaining LIBOR Advances, then,
and in any such event, Payee shall notify Maker in writing of such occurrence
setting forth in reasonable detail the basis for and amounts of such increased
costs, and Maker shall pay to Payee, on demand, such amounts as will compensate
Payee for such increased costs. The certificate of Payee as to any amounts
payable pursuant to this PARAGRAPH shall, absent manifest error, be final,
conclusive and binding on Maker.

     9. Loan Covenants

     (a) At all times while the indebtedness remains outstanding, the
outstanding Principal Amount shall not exceed 65% of the Appraised Value of the
Mortgaged Property, based upon the then most recent Appraised Value of the
Mortgaged Property reviewed and found acceptable by the Maker.

     (b) At all times while the indebtedness remains outstanding, the Maker
shall maintain a "Debt Service Coverage Ratio" (as hereinafter defined) of not
less than 1.35 to 1, to be tested semi-annually, as of June 30, 2000 and each
subsequent December 31 and June 30 (the "Accounting Date"). Debt Service
Coverage Ratio shall mean, for purposes herein, the ratio, as of any date of
calculation, for the immediately preceding six (6) month period and

                                       11
<PAGE>

the immediately succeeding six (6) month period, calculated by dividing: (a) the
Net Operating Income for the preceding six (6) month period and the immediately
succeeding six (6) month period; by (b) principal and interest payments based on
a 25 year self liquidating mortgage amortization schedule, and the 10-year
treasury rate plus 2.00% with a floor rate of 8.50%.

     (c) At all times while the Indebtedness remains outstanding, Acadia shall
maintain a minimum "Net Worth" of at least $50,000,000.00, to be determined by
Maker based upon the financial statements required to be submitted to Maker
pursuant to SECTION 2.10.6 hereof.

     (d) At all times while the Indebtedness remains outstanding, Acadia shall
maintain minimum liquidity of at least $3,000,000.00, to be determined by Maker
based upon the financial statements required to be submitted to Maker pursuant
to SECTION 2.10.6 hereof.

     (e) In the event of the Maker's failure to comply with SUBPARAGRAPHS'
(a),(b) (c) or (d) directly hereinabove, the Maker shall have the following
options prior to the Maker's non-compliance resulting in an Event of Default
under the Mortgage:

          (i) Within 45 days of notice by the Maker to the Maker that the Maker
     has breached the applicable covenant(s), the Maker shall provide additional
     collateral in the form of cash collateral, marketable securities, real
     estate, and/or letter(s) of credit, acceptable in form, quality, value and
     amounts to the Maker in its sole discretion so that after the delivery of
     such collateral, the applicable covenant violation shall have been cured,
     to the satisfaction of Lender, in its sole discretion, or

          (ii) Within 45 days of notice by the Maker to the Maker that the Maker
     has breached the applicable covenant(s), the Maker shall reduce the
     Principal Amount so that after such prepayment, the applicable covenant
     violation shall have been cured, to the satisfaction of the Maker, in its
     sole discretion.

     (f) Within ninety (90) days after the Accounting Date, Maker shall furnish
to Payee detailed calculations of Net Operating Income and Debt Service Coverage
Ratio for the current accounting period and upon which satisfaction of the
provisions of PARAGRAPH 9(b) are to be determined, and certified as true and
accurate, in a manner acceptable to Payee, by the chief financial officer of the
Guarantor as having been prepared under his supervision in accordance with the
Accounting Principles consistently applied and with the definitions of Net
Operating Income and Debt Service Coverage Ratio and that he knows of no facts
inconsistent with such calculations.

                                       12
<PAGE>

     10. Prepayment.

     (a) On any Business Day during the term hereof that the Applicable Rate is
based upon the Prime Rate or on a date which is the last day of an Interest
Period, upon not less than three Business Days written notice to Payee
specifying the date on which prepayment is to be made, Maker shall have the
privilege of prepaying, without payment of a premium or penalty, that portion of
the unpaid balance of the Principal Amount, in whole or in part, as to which the
Applicable Rate is based upon the Prime Rate or as to which an Interest Period
is ending, which parts shall be in integral multiplies of $50,000 together with
all accrued and unpaid interest on the Principal Amount so prepaid to the date
of prepayment, and together also with accrued and unpaid interest or other sums
or charges, if any, then due and owing hereunder or under the Loan Document(s),
provided that any such prepayment shall be in a minimum amount of not less than
$250,000.

     (b) At any time during the term hereof that the Applicable Rate is based
upon LIBOR upon not less than three Business Days prior written notice to Payee
(which notice shall be irrevocable), Maker shall have the privilege of prepaying
the unpaid balance of the Principal Amount, in whole or in part, which parts
shall be in integral multiples of $50,000, prior to the last day of an Interest
Period upon the required notice as aforesaid, provided that any such prepayment
shall be in a minimum amount of not less than $250,000 and provided further that
in addition to the payment of the whole or portion of the Principal Amount so to
be prepaid, all accrued and unpaid interest thereon and all other sums due
hereunder or under the Loan Document(s), Maker shall pay Payee such amount or
amounts as shall be sufficient (in the reasonable opinion of Payee) to
compensate Payee for any loss, costs or expenses Payee incurs with respect to
the termination of any LIBOR contract and/or Hedge Agreement (as such term is
defined in the Mortgage) that Payee or its designee has entered into to borrow
funds in order to fund the Loan plus the following yield maintenance premium:
Maker shall pay to Payee, upon request of Payee, such amount or amounts as shall
be sufficient (in the reasonable opinion of Payee) to compensate it for any
loss, cost or expense incurred as a result of: (i) any payment of a LIBOR Loan
on a date other than the last day of the Interest Period for such Loan; (ii) any
failure by Maker to borrow a LIBOR Loan on the date specified by Maker's written
notice; (iii) any failure by Maker to pay a LIBOR Loan on the date for payment
specified in Maker's written notice. Without limiting the foregoing, Maker shall
pay to Payee a "yield maintenance fee" in an amount computed as follows: The
current rate for United States Treasury securities (bills on a discounted basis
shall be converted to a bond equivalent) with a maturity date closest to the
term chosen pursuant to the Fixed Rate Election as to which the prepayment is
made, shall be subtracted from the LIBOR in effect at the time of prepayment. If
the result is zero or a negative number, there shall be no yield maintenance
fee. If the result is a positive number, then the resulting percentage shall be
multiplied by the amount of the principal balance being prepaid. The resulting
amount shall be divided by 360 and multiplied by the number of days remaining in
the term chosen pursuant to the Fixed Rate Elections as to which the prepayment
is made. Said amount shall be reduced to present value calculated by using the
above referenced United States Treasury securities rate and the number of days
remaining in the term chosen pursuant to the Fixed Rate Election as to which
prepayment is made. The resulting amount shall be the yield maintenance fee due
to Payee upon the payment of a LIBOR Loan. Each reference in this

                                       13
<PAGE>

paragraph to "Fixed Rate Election" shall mean the election by Maker of the LIBOR
Rate. If by reason of an Event of Default Payee elects to declare the Note to be
immediately due and payable, then any yield maintenance fee with respect to a
LIBOR Loan shall become due and payable in the same manner as though the Maker
had exercised such right of prepayment.

     (c) Any payment required of Maker of the Principal Amount or any portion
thereof after acceleration of the Maturity Date pursuant to any provisions
hereof or of the Loan Document(s) shall be deemed a voluntary prepayment for the
purposes hereof, and if a LIBOR Advance is then outstanding, Maker shall be
required, on demand, to pay the prepayment premium, if any, calculated as
aforesaid.

     (d) Any payments of the Principal Amount received by Payee pursuant to the
terms of this PARAGRAPH 10 shall be applied in the following order of priority:
(i) first, to any accrued interest which is due and unpaid as of the date of
such payment; and (ii) second, to the outstanding Principal Amount in the
inverse order of maturity.

     11. Involuntary Rate. Upon a default or after maturity or after judgment
has been rendered on this Note, Maker's right to select pricing options shall
cease. Overdue principal and, to the extent permitted by law, overdue interest
and all other overdue amounts owing hereunder, whether at maturity, upon a
Default, upon acceleration or otherwise, shall bear interest for each day that
such amounts are overdue (whether or not any required notice of default shall
have been given) at a rate per annum equal to four percent (4%) per annum in
excess of the Prime Rate in effect from time to time; provided, however, that no
overdue principal shall bear interest at a rate per annum less than four percent
(4%) in excess of the rate of interest applicable thereto immediately prior to
maturity (such rate, the "Involuntary Rate"). Interest shall continue to accrue
at the Involuntary Rate upon a default or upon maturity of this Note, whether by
expiration of its term, acceleration or otherwise, until this Note is paid in
full, including the period following entry of any judgment on or relating to
this Note or the Loan Documents. Interest on any such judgment shall accrue and
be payable at the Involuntary Rate, and not at the statutory rate of interest,
after judgment, any execution thereon, and until actual receipt by Payee of
payment in full of this Note and said judgment. Interest at the Involuntary Rate
shall be collectible as part of any judgment hereunder and shall be secured by
the Mortgage and the other Loan Documents. Payee's right to receive interest at
the Involuntary Rate shall be in addition to all other rights and remedies
provided herein or by law for the benefit of the holder hereof upon a default;
and the acceptance of the same by the holder hereof shall not restrict such
holder in any respect in the exercise of any other or further right or remedy,
nor shall the same be deemed to be, as to the holder hereof, a waiver or release
of Maker from any of its obligations herein contained or constitute an extension
of the time for payments due hereunder.

     12. Late Fee. If the entire amount of any required principal and/or
interest under this Note is not paid in full within ten (10) days after the same
is due, Maker shall pay to the Payee a late fee equal to five (5%) percent of
the required payment, and such charge shall be deemed to be part of the
indebtedness evidence herein.

     13. Security. This Note is secured by the Mortgage and all of the Loan
Documents

                                       14
<PAGE>

(including any amendment, modification, extension or renewal thereof now or
hereafter executed in connection therewith or herewith). Document(s)." This Note
is entitled to the benefits of the Loan Documents.

     14. Acceleration. It is hereby expressly agreed that the entire unpaid
balance of the Principal Amount shall, at the option of the holder hereof and
upon such notice as may be required by this Note or by the Mortgage, become
immediately due and payable without necessity for presentment and demand, notice
of protest, demand and dishonor or nonpayment of this Note, all of which are
hereby expressly waived, upon the happening of any Event of Default or any event
by which, under the terms of the Loan Document(s), said unpaid balance may or
shall become due and payable. Failure to exercise any such option at any time
shall not constitute a waiver of the right of the holder hereof to exercise the
same in the event of any subsequent default or acceleration event.

     15. Notices. Except as otherwise provided herein, any notice to be given
hereunder shall be in writing and shall be either delivered or sent by
first-class registered or certified mail, return receipt requested postage
prepaid, addressed (a) if to Maker, to Maker's address set forth on the
signature page or (b) if to Payee, at Payee's address set forth above,
Attention: Denise M. Smyth, Vice President or, as to any party, at such other
address as shall be designated by such party by notice to the other party given
in the manner set forth in this PARAGRAPH and each such notice shall be
effective (i) if delivered by hand, at the time of delivery to the address
specified in this PARAGRAPH, or (ii) if given by mail, on the fourth Business
Day following the time of mailing in the manner aforesaid, or (iii) on the
Business Day immediately following the delivery of such notice to an overnight
delivery service.

     16. Funding Sources. Nothing contained herein shall be deemed to obligate
Payee to fund advances hereunder in any particular place or manner; and nothing
contained herein shall be deemed to constitute a representation by Payee that it
has funded or will fund advances in any particular place or manner.

     17. Taxes and Attorneys' Fees. Maker shall pay to Payee, immediately upon
demand, any and all taxes assessed against Payee by reason of its holding of
this Note and the receipt by it of interest payments hereunder (other than
income, franchise and other similar taxes assessed by the United States
Government, any state or any political subdivision of either thereof on such
interest payments), and any and all other sums and charges that may at any time
become due and payable under the Loan Document(s). Maker also promises to pay,
on demand, all costs, title insurance premiums, mortgage recording taxes,
disbursements and reasonable attorneys' fees (including allocated costs of
internal counsel of Payee) and disbursements incurred in connection with the
negotiation, preparation, and execution of this Note and/or the Loan Documents
and any other documents and instruments prepared in connection herewith or
therewith and the consummation of the transactions contemplated hereby or
thereby and the administration of this Loan and in the preservation of rights
under, enforcement of, this Note and the Loan Document(s), any modification,
amendment, or consent related thereto and in any suit, action or proceeding to
protect or sustain the security interest of the holder of the Loan Document(s)
and

                                       15
<PAGE>

any refinancing or renegotiation of this Note and the Loan Document(s).

     18. No Partnership or Joint Venture. Nothing contained in this Note or
elsewhere shall be deemed or construed as creating a partnership or joint
venture between Payee and Maker or between Payee and any other person, or cause
the holder hereof to be responsible in any way for the debts or obligations of
Maker or any other person.

     19. Waiver. Maker hereby waives diligence, presentment, protest and demand,
notice of protest, dishonor and nonpayment of this Note, and expressly agrees
that, without in any way affecting the liability of Maker hereunder, Payee may
extend the Maturity Date or the time for payment of any amount due hereunder,
accept additional security, release any party liable hereunder and release any
security now or hereafter securing this Note without in any other way affecting
the liability and obligation of Maker or any other Person. Maker further waives,
to the full extent permitted by law, the right to plead any and all statutes of
limitations as a defense to any demand on this Note, under the Loan Document(s),
or on any guaranty or other agreement now or hereafter securing this Note.

     20. Interest Rate Limitation. Notwithstanding anything contained herein to
the contrary, the holder hereof shall never be entitled to receive, collect or
apply as interest on the obligation evidenced hereby any amount in excess of the
maximum rate of interest permitted to be charged by applicable law; and in the
event the holder hereof ever receives, collects or applies as interest any such
excess, such amount which would be excessive interest shall be applied to the
reduction of the Principal Amount; and if the Principal Amount is paid in full,
any remaining excess shall forthwith be paid to Maker. In determining whether
the interest paid or payable in any specific case exceeds the highest lawful
rate, the holder hereof and Maker shall to the maximum extent permitted under
applicable law (i) characterize any non-principal payment as an expense, fee or
premium rather than as interest; (ii) exclude voluntary prepayments and the
effects thereof; and (iii) "spread" the total amount of interest throughout the
entire contemplated term of the obligation so that the interest rate is uniform
throughout said entire term.

     21. Severability. Every provision of this Note is intended to be severable.
In the event any term or provision hereof is declared by a court of competent
jurisdiction to be illegal or invalid for any reason whatsoever, such illegality
or invalidity shall not affect the balance of the terms and provision hereof,
which terms and provisions shall remain binding and enforceable.

     22. Number and Gender. In this Note the singular shall include the plural
and the masculine shall include the feminine and neuter gender, and vice versa,
if the context so requires.

     23. Headings. Headings at the beginning of each numbered paragraph of this
Note are intended solely for convenience of reference and are not to be deemed
or construed to be a part of this Note.

     24. Governing Law; Submission to Jurisdiction; Waivers, Etc.

     (a) This Note, which, together with the Loan Documents, sets forth the

                                      16
<PAGE>

entire understanding of Maker and Payee with respect to the subject matter
hereof, shall be governed by and construed and enforced in accordance with the
laws (without giving effect to the conflict of law principles thereof) of the
State of New York.

     (b) Any legal action or proceeding with respect to this Note or any of the
Loan Documents may be brought in the courts of the State of New York or, if the
requisites of jurisdiction obtain, of the United States of America for the
Southern or Eastern District of New York, and, by execution and delivery hereof,
Maker hereby accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Nothing herein,
however, shall affect the right of Payee to commence legal proceedings or
otherwise proceed against Maker in any other jurisdiction. MAKER KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR
ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR
ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT
FOR PAYEE TO ACCEPT THIS NOTE AND MAKE THE LOAN. ACCEPTANCE OF THIS NOTE BY
PAYEE BY THE PAYEE SHALL BE DEEMED TO CONSTITUTE A WAIVER BY THE PAYEE OF THE
RIGHT TO TRIAL BY JURY IN THE EVENT OF ANY LITIGATION IN RESPECT OF WHICH THE
MAKER HAS WAIVED THE RIGHT TO TRIAL BY JURY HEREUNDER

     (c) No delay on the part of Payee in exercising any of its options, powers
or rights, or partial or single exercise thereof, whether arising hereunder,
under the Loan Documents or otherwise, shall constitute a waiver thereof or
affect any right hereunder or thereunder. No waiver of any of such rights and no
modification, amendment or discharge of this Note shall be deemed to be made
unless the same shall be in writing, duly signed by Payee and Maker. Each such
waiver (if any) shall apply only with respect to the specific instance involved
and shall in no way impair the rights of Payee or the obligations of Maker
hereunder in any other respect at any other time.

     25. Brokerage. Payee and Maker each hereby represents to the other that it
did not deal with any broker or similar person in connection with this
financing.

     26. Set-off. Maker hereby grants to Payee, a lien, security interest and
right of setoff as security for all liabilities and obligations to Payee,
whether now existing or hereafter arising, upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Payee or any entity under the control of FleetBoston
Financial Corporation, or in transit to any of them. At any time after an Event
of Default, without demand or notice, Payee may set off the same or any part
thereof and apply the same to any liability or obligation of Maker regardless of
the adequacy of any other collateral securing the Loan. ANY AND ALL RIGHTS TO
REQUIRE PAYEE TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER
COLLATERAL WHICH

                                       17
<PAGE>

SECURES THE LOAN, PRIOR TO EXERCISING ITS RIGHTS OF SETOFF WITH RESPECT TO SUCH
DEPOSITS, CREDITS OR OTHER PROPERTY OF MAKER ARE HEREBY KNOWINGLY, VOLUNTARILY
AND IRREVOCABLY WAIVED.

     27. Miscellaneous. (a) This Note may not be changed orally but only by an
agreement in writing signed by Maker and Payee.

     (b) Should the indebtedness represented by this Note or any part thereof be
collected at law or in equity, or in bankruptcy, receivership or any other court
proceeding (whether at the trial or appellate level), or should this Note be
placed in the hands of attorneys for collection upon default, Maker agrees to
pay, in addition to the principal, interest and others sums due and payable
hereon, all costs of collecting or attempting to collect this Note, including
reasonable attorneys' fees and expenses.

     (c) This Note may be signed in counterparts.

     28. Replacement Documents. Upon receipt of an affidavit of an officer of
Payee as to the loss, theft, destruction or mutilation of this Note or any other
Loan Document which is not of public record, and, in the case of any such loss,
theft, destruction or mutilation, upon cancellation of this Note or such other
Loan Document, Maker will issue, in lieu thereof, a replacement Note or such
other Loan Document in the same principal amount thereof and otherwise of like
tenor.

     29. Sell a Loan to a Third Party Provider Payee shall have the unrestricted
right at any time or from time to time, and without Maker's or Guarantor's
consent, to assign all or any portion of its rights and obligations hereunder to
one or more banks or other financial institutions (each, an "Assignee"), and a
Maker (and each guarantor, as applicable) agrees that it shall execute, or cause
to be executed, such documents, including, without limitation, amendments to
this Agreement and to any other documents, instruments and agreements instituted
in connection herewith as Payee shall deem necessary to effect the foregoing. In
addition, at the request of Payee and any such Assignee, Maker shall issue one
or more new promissory notes, as applicable, to any such Assignee and, if Payee
has retained any of its rights and obligations hereunder following such
assignment to Payee, which new promissory notes shall be issued in replacement
of, but not in discharge of, the liability evidenced by the promissory note held
by Payee prior to such assignment and shall reflect the amount of the respective
commitments and loans held by such appropriate assignment documentation,
amendments and any other documentation required by Payee in connection with such
assignment, and the payment by Assignee of the purchase price agreed to by Payee
and such Assignee, such Assignee shall be a party to this Agreement and shall
have all of the rights and obligations of Payee hereunder (and under any and all
other guaranties, documents, instruments and agreements executed in connection
herewith) to the extent that such rights and obligations have been assigned by
Payee pursuant to the assignment documentation between Payee and such Assignee
and Payee shall be released from its obligations hereunder and thereunder to a
corresponding extent.

                                       18
<PAGE>

     30. Sell a Loan to a Prospective Participant. Payee shall have the
unrestricted right at any time and from time to time and without the consent of
or notice to Maker (or any guarantor, if any) to grant to one or more banks or
other financial institutions (each, a "Participant") participating interests in
Payee's obligation to lend hereunder and/or any or all of the loans held by
Payee hereunder. In the event of any such grant by Payee of a participating
interest to a Participant, whether or not upon notice to Maker, Payee shall
remain responsible for the performance of its obligations hereunder and Maker
shall continue to deal solely and directly with Payee in connection with Payee's
rights and obligations hereunder.

     31. Furnishing of Information to Prospective Participants and Assignees.
Payee may furnish any information concerning Maker in its possession from time
to time to prospective Assignees and Participants provided that Payee shall
require any such prospective Assignee or Participant to agree in writing to
maintain the confidentiality of such information.

     32. Limited Recourse.

     Payee expressly agrees that the extent of liability of the Maker for any
sums due or obligations to perform under this Note (except for the indemnities
and/or guarantees delivered to Payee by the Maker and/or the other Indemnitor
dated as of this date in connection with the loan evidenced by this Note, and
secured, in part, by the Mortgage) is limited to the Maker's estate, right,
title and interest in, to and under the Mortgaged Property, the Maker's right,
title and interest to the leases and all interest of undersigned thereto (the
"Leases"), as described in the Mortgage and/or any other document evidencing or
securing this Note, as the same may be amended from time to time (individually,
herein referred to as the "Instrument" and collectively, as "Instruments" or
"Loan Documents") and the assignment of leases in rents dated of even date
hereof by the Maker in favor of Payee, as the same may be amended from time to
time (the "Assignment"), Payee agreeing not to look personally to the Maker or
to the other Indemnitor or to any principals, trustees members, partners,
shareholders, officers, directors, employees or agents of the Maker
(collectively, the "Affiliates") but to look solely to the Mortgaged Property,
the Leases and the Collateral and no other assets of the Maker, Indemnitor or
the Affiliates for payment of any of such sums; provided that the foregoing
shall not (i) constitute a waiver of any obligation evidenced by the Note, this
Mortgage, the Assignment and/or any other Instrument, (ii) limit the right of
the holder of the Note, this Mortgage, the Assignment, and/or any other
Instrument to name the Maker as a party defendant in any action or suit for
judicial or non-judicial foreclosure and sale under the Note, the Mortgage, the
Assignment and/or any other Instrument in any action or proceeding hereunder so
long as no judgment in the nature of a deficiency judgment or any other personal
or money judgment shall be asked for or taken against the Maker or the
Affiliates, (iii) affect in any way the validity of any guaranty or indemnity
from the Maker, the other Indemnitors and/or any other person of all or any of
the obligations evidenced and secured by the Note and/or the any of the other
Instruments, or the rights of the Payee in connection with such guaranties
and/or indemnities to look to the property and assets of the Maker, the other
Indemnitor, any guarantor, and/or any Affiliates, but only to the extent
provided in such guaranty and/or indemnity, as the case may be (iv) release or
impair this Note or the lien of the Mortgage, the Assignment, and/or other
Instrument, (v) prevent or in any way

                                       19
<PAGE>

hinder the Payee from exercising or constitute a defense, an affirmative
defense, a counterclaim or other basis for relief in respect of the exercise of,
any other remedy against the Mortgaged Property, the Leases and/or the
Collateral and/or the Mortgage, Assignment, Instrument and/or any other
instrument securing the Note including the other Loan Documents executed and
delivered to the Payee in connection with the transactions contemplated herein
or as prescribed by law or in equity in case of default, except that Payee shall
in no event seek any deficiency or other personal or money judgment against the
Maker or any Affiliates except to the extent provided for in such guarantees
and/or indemnities, (vi) prevent or in any way hinder the Payee from exercising,
or constitute a defense, an affirmative defense, a counterclaim or other basis
for relief in respect of the exercise of, its remedies in respect of any
deposits, insurance proceeds, condemnation awards or other monies or other
collateral or letters of credit securing this Note, or (vii) be applicable to
the responsible Person in the event of and to the extent of fraud,
misappropriation of funds or other property, or intentional damage to any of the
Mortgaged Premises or any other collateral securing this Note or any part
thereof intentionally inflicted in bad faith by Maker or any partner, principal,
shareholder, officer, director, agent or employee of Maker or any partner or
principal of any of the foregoing or (viii) be applicable to the liability
arising in respect of hazardous materials or ADA compliance.

     Nothing herein shall be deemed to be a waiver of any right which the Payee
may have under Section 506(a), 506(b), 1111(b) or any other provision of the
Bankruptcy Reform Act of 1978 or any successor thereto or similar provisions
under applicable state law to file a claim for the full amount of the debt owing
to the Payee by the Maker or to require that all of the Mortgaged Property shall
continue to secure all of the indebtedness owing to the Payee in accordance with
this Note, this Mortgage, and the other Loan Documents.

     33. Events of Default.

     The occurrence of any one or more of the following events shall constitute
an event of default (an "Event of Default") hereunder and under the Loan
Documents:

         (a) failure of Maker (x) to comply with any of the provisions of
PARAGRAPH 9 herein; or

         (b) except as otherwise provided in SUBPARAGRAPH (a) directly
hereinabove, if Maker shall fail to perform or observe, or cause to be performed
or observed, any other term, obligation, covenant, condition or agreement
contained in this Note on its part to be performed and such failure shall have
continued for a period of thirty (30) days after notice thereof; provided,
however, if such default shall not have been occasioned by any willful act of
Maker, and if such default cannot with due diligence be cured within such thirty
(30) days period, the time within which to cure the same shall be extended for
such period as may be necessary to cure the same with due diligence if Maker
commences within such thirty (30) days and proceeds diligently to cure the same;
or

         (c) if the Managing Member ceases (x) to own at least 49.9% of the
issued and outstanding equity interests in Maker or (y) to control (i.e., power
to direct or cause

                                       20
<PAGE>

the direction of the management and policies of a person, corporation,
partnership or other entity) Guarantor or (ii) if there is a Change in Control.

     34. Distributions. During the continuance of an Event of Default, the Maker
shall be prohibited from making distributions to its members, and if no Events
of Default shall exist, the Maker may make distributions to its members.

                                       21
<PAGE>

     IN WITNESS WHEREOF, Maker and Payee have executed and delivered this Note
on the day and year first above written.

Address of Maker:

20 Soundview Marketplace                Port Bay Associates, LLC
Port Washington, New York 11050         By: Acadia Realty Limited Partnership,
                                            its Managing Member

                                        By: Acadia Realty Trust, its General
                                            Partner

                                        By:
                                           -------------------------------------
                                           Robert Masters
                                           Senior Vice President
Witness:

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

Agreed and Accepted:

FLEET BANK, NATIONAL ASSOCIATION

By:
   -------------------------------------
   Name:  Denise M. Smyth
   Title: Vice President

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