Document:

CONTINUITY AGREEMENT

         This  Continuity  Agreement  ("Agreement")  is entered  into as of this
________ day of  ____________________,  2000, by and between AGL RESOURCES  INC.
(the  "Company")  [, on behalf of itself and  Atlanta  Gas Light  Company,  (its
wholly owned subsidiary and the Executive's  employer),] and ___________________
(the "Executive").

         WHEREAS, Executive is presently employed by the Company or one of its
 subsidiaries in a key management capacity; and

         WHEREAS,  the Company's Board of Directors  desires to assure,  and has
determined  that it is appropriate  and in the best interests of the Company and
its shareholders to reinforce and assure, the continued attention and dedication
of certain key executives of the Company and its subsidiaries to their duties of
employment  without personal  distraction or conflict of interest as a result of
the possibility or occurrence of a change in control of the Company; and

         WHEREAS, the Company's Board of Directors has authorized the Company to
enter into  continuity  agreements  with those key executives of the Company and
its subsidiaries designated by the Compensation Committee of the Company's Board
of Directors (the "Committee"); and

         WHEREAS,  the  Executive is a key employee of the Company or one of its
subsidiaries  and has been  designated  by the  Committee  as an executive to be
offered such a continuity agreement with the Company.

         NOW THEREFORE,  in  consideration  of the foregoing,  and of the mutual
covenants  and  agreements  of the parties set forth in this  Agreement,  and of
other good and valuable consideration including, but not limited to, Executive's
continuing employment with the Company, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

SECTION 1

                                   Definitions

1.1  "Announcement"  shall mean a press release issued by the Company announcing
the intention to engage in a transaction  or event that is expected to result in
a Change in Control of the Company as defined hereunder.

1.2      "Board" shall mean the Board of Directors of the Company.
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1.3      "Cause" shall mean:
          -----

(a)      fraud, dishonesty or willful malfeasance by the Executive in connection
         with the Executive's employment with the Company which results in
         material harm to the Company;

(b)      the Executive's  continued failure to substantially  perform the duties
         and  responsibilities of the Executive's  position after written notice
         from the Company  setting forth the  particulars  of such failure and a
         reasonable  opportunity  of not less than thirty (30)  business days to
         cure such failure;

(c)      the Executive's willful and material breach of the provisions of
         Section 6 of this Agreement; or

(d)      the Executive's plea of guilty or nolo contendere to, or conviction of,
         a felony.

1.4      "Change in Control" shall be deemed to have occurred when:
          -----------------

(a)      any "person" as defined in Section 3(a)(9) of the Securities Exchange
         Act of 1934, as amended (the "Exchange Act"), and as used in Section
         13(d) and 14(d) thereof, including a "group" as defined in Section
         13(d) of the Exchange Act but excluding the Company and any subsidiary
         and any employee benefit plan sponsored or maintained by the Company or
         any subsidiary (including any trustee of such plan acting as trustee),
         directly or indirectly, becomes the "beneficial owner" (as defined in
         Rule 13d-3 under the Exchange Act), of securities of the Company
         representing 10% or more of the combined voting power of the Company's
         then outstanding securities (unless the event causing the 10% threshold
         to be crossed is an acquisition of securities directly from the
         Company); or

(b)      the shareholders of the Company shall approve any merger or other
         business combination of the Company, the sale of 50% or more of the
         Company's assets or any combination of the foregoing transactions (the
         "Transactions"), other than a Transaction immediately following which
         the shareholders of the Company and any trustee or fiduciary of any
         Company employee benefit plan immediately prior to the Transaction
         own at least 80% of the voting power, directly or indirectly, of
         (A) the surviving corporation in any such merger or other business
         combination; (B) the purchaser of the Company's assets; (C) both the
         surviving corporation and the purchaser in the event of any combination
         of Transactions; or (D) the parent company owning 100% of such
         surviving corporation, purchaser or both the surviving corporation
         and the purchaser, as the case may be; or

(c)      within any twenty-four month period, the persons who were directors
         immediately before the beginning of such period (the "Incumbent
         Directors") shall cease (for any reason other than death) to constitute
         at least a majority of the Board or the board of directors of a
         successor to the Company.  For this purpose, any director who was not a
         director at the beginning of such period shall be deemed to be an
         Incumbent Director if such director was elected to the Board by, or on
         the recommendation of or with the approval of, at least two-thirds of
         the directors who then qualified as Incumbent Directors (so long as
         such director was not nominated by a person who has entered into an
         agreement to effect a Change in Control or expressed an interest to
         cause such a Change in Control).

1.5      "Code" shall mean the Internal Revenue Code of 1986, as amended.
          ----

1.6      "Company" shall mean AGL Resources Inc.
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1.7 "Consummation of a Change in Control  Transaction" shall mean the earlier of
the date on which a person first becomes the  beneficial  owner of the requisite
number of securities  of the Company  described in Section  1.4(a),  the date on
which a transaction described in Section 1.4(b) is actually closed (not the date
on which  the  shareholders'  approval  is  obtained),  or the date on which the
Incumbent  Directors cease to constitute a majority of the Board as described in
Section 1.4(c).

1.8  "Disability"  shall mean, for purposes of this  Agreement,  the Executive's
absence from the full-time  performance of the Executive's  duties pursuant to a
determination made in accordance with the procedures  established by the Company
in  connection  with the  Company's  long-term  disability  benefits plan (as in
effect as of the date of the  Announcement)  that the Executive is disabled as a
result of incapacity due to physical or mental illness.

1.9 "Effective Date" shall mean the date as of which this Agreement is executed,
 as first written above.

1.10 "Good  Reason"  shall mean the  occurrence  of one or more of the following
without the Executive's express written consent:

(a)      any  material  diminution  in  the  Executive's  position,   duties  or
         responsibilities  with the Company or any change which would constitute
         a   material   adverse   alteration   in   the   Executive's    duties,
         responsibilities  or other  conditions  of  employment,  from  those in
         effect as of the earlier of the date of the Announcement or the date of
         a Change in Control;

(b)      any adverse change in the Executive's salary or incentive  compensation
         from the salary and incentive  compensation in effect as of the earlier
         of the date of the Announcement or the date of a Change in Control;

(c)      any failure by the Company either to continue in effect,  or to provide
         in the  aggregate  reasonably  similar  retirement,  savings,  medical,
         dental, accident,  disability and life insurance plans or coverages and
         any other similar benefits, policies or programs in which the Executive
         was a participant as of the earlier of the date of the  Announcement or
         the date of a Change in Control (unless such failure or  discontinuance
         of benefits is applicable to all  similarly-situated  executives of the
         Company);

(d)      any relocation of the Executive's employment to a location in excess of
         35 miles from the location at which the  Executive  was based as of the
         earlier  of the date of the  Announcement  or the  date of a Change  in
         Control; or

(e)      any failure of the Company to obtain from any  successor to the Company
         an agreement  reasonably  satisfactory  to the  Executive to assume and
         perform this Agreement.

1.11     "Qualifying Termination" shall mean the occurrence of any one or more
 of the following events:

(a)      the involuntary termination of Executive's employment by the Company or
         its subsidiary, as applicable, without Cause; or

(b)      Executive's termination of his or her employment with the Company or
         its subsidiary, as applicable, for Good Reason.

         A Qualifying Termination shall not include a termination of Executive's
employment by reason of the Executive's death, the Executive's  Disability,  the
Executive's  voluntary  termination  of employment  without Good Reason,  or the
termination of the Executive's employment for Cause.

SECTION 2

                                Term of Agreement

2.1 Term. This Agreement shall commence on the Effective Date and shall continue
in effect for a period of three (3) years (the "Term").

2.2  Modification  of Term.  In the event  that an  Announcement  or a Change in
Control occurs during the Term, the term of this Agreement  shall  automatically
and irrevocably become a term ending on the later of the last day of the Term or
the  second  anniversary  of the date of  Consummation  of a Change  in  Control
Transaction.  This Agreement  shall be assigned to, and shall be assumed by, any
successor to the Company upon  Consummation of a Change in Control  Transaction.
During the modified term pursuant to this section,  this Agreement  shall not be
terminated by the Company or its successor.

2.3 No  Assurances.  Executive  acknowledges  and  agrees  that (i)  there is no
assurance  that,  upon  the  expiration  of the  Term  of this  Agreement,  this
Agreement  will be renewed or extended,  (ii) the Company has no  obligation  to
renew or extend this  Agreement,  and (iii)  Executive  has no right to any such
renewal or  extension.  Executive  acknowledges  and agrees  further that in the
event the Company,  in its sole discretion,  elects to offer Executive a renewal
or extension of this  Agreement or a new agreement  following the  expiration of
the Term of this  Agreement,  there can be no  assurance  as to the terms of any
such   renewal,   extension   or  new   agreement,   the  Company  has  made  no
representations  to Executive with respect thereto and nothing contained in this
Agreement  shall  be  relevant,  or of any  precedential  value  whatsoever,  in
determining the terms of any renewal, extension or new agreement.

SECTION 3

                           Change in Control Benefits

3.1  Entitlement  to  Benefits.  If, for any reason  constituting  a  Qualifying
Termination,  the Executive's  employment terminates during the period beginning
on the earlier of the date of an  Announcement  or the occurrence of a Change in
Control and ending on the second  anniversary of the date of the Consummation of
a Change in Control Transaction,  the Company shall provide to the Executive the
benefits described in Section 3.2 below.

3.2      Description of Change in Control Benefits.  The Company shall pay and
provide to Executive each of the following benefits, subject to Executive's
entitlement to such benefits pursuant to Section 3.1 hereof:

(a)   Accrued Pay and Benefits. As soon  as practical following  a  Qualifying
Termination,  but no later  than 10  business  days  following  such  Qualifying
Termination,  the  Company  shall  provide  the  Executive  with a lump sum cash
payment  equal to  Executive's  earned but unpaid base salary,  the  Executive's
Earned and Unused Vacation Pay (as hereinafter  defined),  unreimbursed business
expenses  and all other  amounts  earned by and owed to  Executive  through  and
including the date of the  Qualifying  Termination.  In addition,  Executive may
continue to utilize any funds  remaining in his or her Executive  Allowance Fund
for the  remainder  of the  calendar  year in which the  Qualifying  Termination
occurs,  for expenses  permitted  under the  Executive  Allowance  Fund.  If the
Executive is leasing an automobile  through the Executive  Allowance Fund on the
date of the  Qualifying  Termination,  the  Executive  must  continue  the lease
through the end of the calendar year in which the Qualifying  Termination occurs
and then may  either  assume  responsibility  for the  payments  on the lease or
return the  automobile  to the  Company in which case the Company  shall  assume
responsibility  for the lease.  In the event any annual  incentive  payments are
paid to  employees  for the  fiscal  year in which  the  Qualifying  Termination
occurs,  at the time such  payments  are paid,  the  Company  shall  provide the
Executive  with a lump  sum  cash  payment  equal to a  prorata  portion  of the
Executive's incentive payment under the Company's annual incentive program based
on  actual  corporate  and  business  unit  performance   calculations  for  the
applicable  fiscal  year and  assuming  target  performance  of the  Executive's
individual performance  objectives,  with such proration based on the portion of
the fiscal year completed at the time of the Qualifying  Termination;  provided,
however, that if the Qualifying  Termination and the Consummation of a Change in
Control  Transaction  occur in the same  fiscal  year,  then the  Company  shall
provide the Executive with a lump sum cash payment equal to a prorata portion of
the Executive's  incentive  payment under the Company's annual incentive program
assuming  target  performance  of the  corporate,  business unit and  individual
performance  objectives,  with such proration based on the portion of the fiscal
year  completed at the time of the Qualifying  Termination.  Payments made under
this  paragraph  shall  constitute  full  satisfaction  to the Executive for the
accrued pay and  benefits  described  in this  paragraph.  For  purposes of this
paragraph,  the term "Earned and Unused  Vacation Pay" shall mean the product of
(i) the  Executive's  annual base salary in effect on the date of the Qualifying
Termination divided by 2080, and (ii) the Executive's Earned and Unused Vacation
(as hereinafter  defined).  The term "Earned and Unused Vacation" shall mean the
difference  between (i) Earned  Vacation (as  hereinafter  defined) and (ii) the
actual number of hours of vacation  taken by the Executive from January 1 of the
calendar year in which the Qualifying  Termination  occurs through and including
the date of the Qualifying Termination;  provided that if the difference between
(i) and (ii) is a negative number,  then Executive's  Earned and Unused Vacation
shall  be  deemed  to be  zero.  As used in this  paragraph,  the  term  "Earned
Vacation"  means the  product of (i) the  aggregate  number of hours of vacation
which  Executive  is  entitled  to take  during the  calendar  year in which the
Qualifying  Termination  occurs,  and (ii) the quotient obtained by dividing (A)
the number of calendar  days from January 1 of the year in which the  Qualifying
Termination occurs through and including the date of the Qualifying Termination,
by (B) 365.

(b) Severance Benefit.As soon as practicable following a Qualifying Termination,
but no later than 10 business days following such Qualifying Termination, the
Company shall provide the Executive  with a lump sum cash payment equal to three
(3)  multiplied by the sum of (i) and (ii),  where (i) equals the greater of the
Executive's annual rate of base salary in effect upon the date of the Qualifying
Termination,  or the Executive's  annual rate of base salary in effect as of the
date of the Announcement (which annual base salary shall not include any amounts
under the Company's  Executive  Allowance  Fund), and (ii) equals the greater of
the Executive's  target payment under the Company's annual incentive program for
the fiscal year in which the date of the Qualifying  Termination  occurs, or the
Executive's target payment for the fiscal year in which the Announcement occurs.

(c)      Welfare  Benefits.   The  Company  shall  provide  the  Executive  with
         continued medical, dental and life insurance coverage for the Executive
         and the Executive's  eligible  dependents on the same basis  (including
         premium)  as  active  employees  as in  effect  as of the  date  of the
         Executive's Qualifying Termination,  until the earlier of (A) 36 months
         after the Executive's Qualifying  Termination,  or (B) the commencement
         of comparable coverage with a subsequent employer;  provided,  however,
         that  such  continued  coverage  shall  not  count  against  any  COBRA
         continuation coverage required by law.

(d)      Retirement Plan.  For purposes of computing the Executive's accrued
         benefit payable under the Company's Retirement Plan, the Company shall
         calculate benefits based on the following:

(i)                                 if  the   Executive   is  vested  under  the
                                    Retirement  Plan  as  of  the  date  of  the
                                    Qualifying Termination, then he or she shall
                                    be deemed to have  attained  at least age 55
                                    on the date of the  Qualifying  Termination,
                                    and benefits  shall be  calculated as though
                                    the  Executive  were  age  55 or  his or her
                                    actual  age  at  termination,  whichever  is
                                    greater,  but payment of the  benefit  shall
                                    not be payable prior to actual attainment of
                                    age 55;

(ii)                                if the  Executive  has attained age 50 on or
                                    before   the   date   of   the    Qualifying
                                    Termination, he or she will be deemed vested
                                    in his or her  benefit as of the date of the
                                    Qualifying Termination, and may, upon actual
                                    attainment  of age  55,  begin  receiving  a
                                    retirement  benefit  based on actual age and
                                    years  of  service  at  commencement  of the
                                    payment of the retirement  benefit,  without
                                    any terminated vested penalty.

                  Payment of any  retirement  benefit  resulting from the deemed
                  treatment  under this paragraph shall be paid from the general
                  assets of the Company rather than the assets of the Retirement
                  Plan. Any  additional  retirement  benefit  resulting from the
                  deemed  treatment  under this section  shall be payable in the
                  same  form as the  Executive's  benefits  from the  Retirement
                  Plan, if any; if no benefits are payable to the Executive from
                  the  Retirement  Plan,  the  Executive  may choose the form of
                  payment of the benefits  provided under this  paragraph  among
                  lump sum payment or any one of the forms  available  under the
                  Retirement  Plan.   Benefits  under  this  provision  may  not
                  commence prior to the date on which the Executive  attains age
                  55.

(e)      Retirement Savings Plus Plan and Nonqualified Savings Plan. The Company
         shall  provide a cash lump sum  payment to the  Executive  equal to the
         amount, if any, of the Company's matching contributions  forfeited from
         the Executive's  account in the Company's  Retirement Savings Plus Plan
         and the  Company's  Nonqualified  Savings  Plan  due to his  Qualifying
         Termination.  Payment  of this  amount  shall be paid from the  general
         assets of the Company.

(f)      Stock Options, Restricted Stock and Performance-Based Stock Awards.  In
         the event of a Qualifying Termination after an Announcement but prior
         to the Consummation of a Change in Control Transaction, any outstanding
         stock options, restricted stock awards, performance share awards or
         performance unit awards of the Executive shall become vested and/or
         exercisable in accordance with the terms of the plan under which such
         grants and awards were made as if a change in control (as defined in
         each applicable plan) had occurred immediately prior to the Qualifying
         Termination.  Upon the occurrence of a change in control (as defined in
         each applicable plan), all grants and awards shall be subject to the
         provisions of the plan under which they were made.  With regard to any
         outstanding stock options, the Executive shall have a period of thirty
        (30) days following the date of the Qualifying Termination in which to
         exercise such options; provided, that if  the plan under which such
         options were granted provides a longer period of exercise for which the
         Executive would be eligible, then such longer period shall be
         available to the Executive.

(g)      Outplacement  Benefits. If so requested by the Executive,  outplacement
         services shall be provided by a professional  outplacement provider, in
         accordance with existing Company policy; provided,  however, that in no
         event shall such services be less than under  Company  policy in effect
         as of the  date  of the  Announcement;  provided,  further,  that  such
         outplacement services shall be provided at a cost to the Company of not
         more than 25% of the  Executive's  base salary in effect as of the date
         of the Announcement.

SECTION 4

                     Limitations on Payments and Excise Tax

4.1 Limitation on Payments and Benefits.  If the payments and benefits  provided
to the Executive under this Agreement or under any other agreement with, or plan
of, the Company (the "Total  Payment") (i)  constitute a "parachute  payment" as
defined in Code Section 280G and exceed  three (3) times the  Executive's  "base
amount" as defined under Code Section  280G(b)(3) by less than ten percent (10%)
of three (3) times the  Executive's  base amount,  and (ii) would,  but for this
Section 4.1, be subject to the excise tax imposed by Code Section 4999, then the
Executive's  payments and benefits under this Agreement shall be either (A) paid
in full,  or (B) reduced and payable  only as to the maximum  amount which would
result in no portion of such  payments and benefits  being subject to excise tax
under Code Section 4999, whichever results in the receipt by the Executive on an
after-tax basis of the greatest amount of Total Payment (taking into account the
applicable  federal,  state and local income taxes and the excise tax imposed by
Code Section 4999 payable by the Executive). If a reduction of the Total Payment
is  necessary,  the  Executive  shall be  entitled to select  which  payments or
benefits will be reduced and the manner and method of any such reduction of such
payments and benefits.  Within thirty (30) days after the amount of any required
reduction in payments and benefits is finally  determined under Section 4.3, the
Executive  shall  notify the Company in writing  regarding  which  payments  and
benefits are to be reduced.  If no notification  is given by the Executive,  the
Company will determine which payments and benefits to reduce. If, as a result of
any reduction required by this section, amounts previously paid to the Executive
exceed  the  amount to which the  Executive  is  entitled,  the  Executive  will
promptly return the excess amount to the Company.

4.2 Gross Up  Payments  for  Excise  Tax.  If the Total  Payment  constitutes  a
"parachute  payment" as defined in Code Section 280G and exceeds three (3) times
the  Executive's  "base amount" as defined under Code Section  280G(b)(3) by ten
percent  (10%) or more of three (3)  times  the  Executive's  base  amount,  the
Company shall provide to Executive,  in cash, an additional payment in an amount
to cover the full excise tax due under Code Section 4999,  plus the  Executive's
state and federal income and employment  taxes on this  additional  payment (the
"Gross-Up Payment").  Any amount payable under this Section 4.2 shall be paid as
soon as possible following the date of the Executive's  Qualifying  Termination,
but in no event later than thirty (30) calendar days after such date.

4.3 All  determinations  required  to be made  under this  Section 4,  including
whether reductions are necessary or whether a Gross-Up Payment is required,  the
amount of such Gross-Up  Payment and the  assumptions  to be used in determining
such payment,  shall be made by the  accounting  firm used by the Company at the
time of such  determination  (the "Accounting  Firm"). The Accounting Firm shall
provide detailed  supporting  calculations  both to the Company and to Executive
within  fifteen (15)  business days of the receipt of notice from the Company or
Executive that there has been a Qualifying Termination,  or such earlier time as
is requested by the Company. In the event that the Accounting Firm is serving as
accountant or auditor for the individual,  entity, or group effecting the Change
in Control transaction,  the Executive may appoint another nationally recognized
accounting firm to make the determinations  required hereunder (which accounting
firm shall then be referred to as the Accounting Firm  hereunder).  All fees and
expenses of the Accounting Firm shall be borne solely by the Company.

4.4 Subsequent  Recalculation.  In the event executive is entitled to a Gross-Up
Payment  under  Section  4.2  and  the  Internal  Revenue  Service  subsequently
increases the excise tax computation described in Section 4.2, the Company shall
reimburse  the  Executive  for the full amount  necessary to make the  Executive
whole on an after-tax basis (less any amounts received by the Executive that the
Executive would not have received had the  computations  initially been computed
as subsequently adjusted),  including the value of any underpaid excise tax, and
any related interest and/or penalties due to the Internal Revenue Service.

SECTION 5

                            Successors and Assignment

5.1 Successors.  The Company shall require any successor  (whether pursuant to a
Change  in  Control  transaction,  direct  or  indirect,  by  purchase,  merger,
consolidation,  or otherwise) to all or substantially all of the business of the
Company to expressly assume and agree to perform the Company's obligations under
this Agreement, in the same manner and to the same extent that the Company would
be required to perform them if no such  succession  had taken place.  Failure of
the Company to obtain such assumption and agreement  prior to the  effectiveness
of any such succession  shall  constitute a material breach of the Agreement and
shall entitle the Executive to terminate the  Executive's  employment  with Good
Reason immediately prior to or at any time after such succession.

5.2 Assignment by Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive's executor and/or administrators,  heirs, devisees,
and legatees.  If the Executive  should die while any amount would be payable to
Executive  hereunder  had the  Executive  continued to live,  all such  amounts,
unless otherwise provided herein,  shall be paid in accordance with the terms of
this Agreement to the Executive's estate. Executive's rights hereunder shall not
otherwise be assignable.

SECTION 6

          Confidentiality of Company Information; Nonsolicitation

         Without the prior  written  consent of the Company,  during the term of
this Agreement,  and if Executive either experiences a Qualifying Termination or
voluntarily   terminates  employment  without  Good  Reason,  for  a  period  of
twenty-four  (24) calendar months  thereafter,  Executive  agrees hereby not to,
directly or  indirectly,  disclose  or use  (except as may be  required  for the
performance  of  duties  assigned  by the  Company)  any  trade  secret or other
confidential  material pertaining to the conduct of the Company's business.  The
Company's business,  as that term is used herein,  includes,  but is not limited
to, the Company's  records,  processes,  methods,  data,  reports,  information,
documents,  equipment,  training  manuals,  customer lists and business secrets.
Executive  further  agrees,  that  during  the  twenty-four  (24)  month  period
following a Qualifying Termination, Executive shall not initiate contact with or
attempt to recruit  employees of the Company or its  subsidiaries for employment
outside the Company.  Nothing  herein,  however,  shall prevent  Executive  from
responding to contacts initiated by such employees.

SECTION 7

                                  Miscellaneous

7.1 Contractual  Rights to Benefits.  This Agreement  establishes in Executive a
right to the benefits to which Executive is entitled hereunder.  However, except
as expressly stated herein,  nothing herein contained shall require or be deemed
to  require,  or prohibit or be deemed to  prohibit,  the Company to  segregate,
earmark,  or  otherwise  set  aside  any  funds  or  other  assets,  in trust or
otherwise, to provide for any payments to be made or required hereunder.

7.2  Obligation  Absolute;  No Effect on Other Rights.  The  obligations  of the
Company to make the  payments to the  Executive,  and to make the  arrangements,
provided for herein shall be absolute and unconditional and shall not be reduced
by any circumstances,  including, without limitation, any set-off, counterclaim,
recoupment,  defense or other  right  which the  Company  may have  against  the
Executive or a third party at any time.  The provisions of this  Agreement,  and
any payment  provided  for herein,  shall not  supercede or in any way limit the
rights,  benefits,  duties or obligations which the Executive may have now or in
the future under any  benefit,  incentive  or other plan or  arrangement  of the
Company or any other agreement with the Company.

7.3 Legal Fees and  Expenses.  In addition to all other  amounts  payable to the
Executive under this Agreement, the Company shall pay or reimburse the Executive
for legal  fees  (including,  without  limitation,  any and all court  costs and
attorneys'  fees  and  expenses),  up to a  maximum  Company  cost of  $100,000,
incurred by the Executive in connection with or as a result of any claim, action
or proceeding brought by the Company or the Executive with respect to or arising
out of this Agreement or any provision hereof;  unless, in the case of an action
brought by the  Executive,  it is  determined  by an arbitrator or by a court of
competent  jurisdiction  that such action was  frivolous and not brought in good
faith.

7.4 Dispute Resolution.  Notice of any dispute or controversy arising under this
Agreement  shall be provided in writing to the other  party.  If such dispute is
not resolved by mutual  agreement of the parties  within 60 calendar days of the
provision of such notice, Executive shall have the right and option to elect (in
lieu of litigation)  to have any such dispute or controversy  settled by binding
arbitration.  Such  arbitration  shall be conducted  before a panel of three (3)
arbitrators sitting in a location selected by Executive in the metropolitan area
nearest to, and in the same county as, the  Executive's  place of residence,  in
accordance  with  the  rules of the  American  Arbitration  Association  then in
effect.  Executive's election to arbitrate, as herein provided, and the decision
of the  arbitrators  in that  proceeding,  shall be binding on the  Company  and
Executive.  The  Company may elect to have a dispute or  controversy  settled by
binding  arbitration only if such dispute or controversy  arises under Section 6
of this Agreement.

7.5      Notices.  Any notice required to be delivered to the Company or the
Committee by Executive hereunder shall be properly delivered to the Company when
personally delivered to, or received through the U.S. mail, postage prepaid, by:

         AGL Resources Inc.
         Attn: Senior Vice President and General Counsel
         817 West Peachtree Street

         Suite 1000
         Atlanta, GA  30308

         Any notice  required to be delivered to Executive by the Company or the
Committee  hereunder  shall be properly  delivered to Executive when  personally
delivered to, or actually  received through the U.S. mail,  postage prepaid,  by
Executive.

7.6 Amendment. No provision of this Agreement may be amended, altered, modified,
waived or discharged unless such amendment, alteration,  modification, waiver or
discharge  is  agreed  to in a writing  signed  by both the  Executive  and such
officer of the Company as is  specifically  designated  by the  Committee or the
Board.  No waiver by either party, at any time, of any breach by the other party
of, or of compliance by the other party with, any condition or provision of this
Agreement to be performed or complied with by such other party shall be deemed a
waiver of any similar or dissimilar  provision or condition of this Agreement or
any other  breach or failure to comply with the same  condition  or provision at
any  prior  or  subsequent  time.  No  agreements  or  representations,  oral or
otherwise,  express or implied,  with respect to the subject  matter hereof have
been made by either party which are not expressly set forth in this Agreement.

7.7 Employment  Status.  Nothing herein  contained  shall be deemed to create an
employment  agreement  between  the  Company  and  Executive  providing  for the
employment of Executive by the Company for any fixed period of time.  Subject to
the terms of any other agreement between the Company and the Executive,  if any,
Executive's  employment with the Company is terminable at will by the Company or
Executive and each shall have the right to terminate Executive's employment with
the  Company  at any time,  with or  without  Cause,  subject  to the  Company's
obligation  to  provide  any  benefits  required  hereunder.  In no event  shall
Executive be obligated to seek other  employment or take any other action by way
of mitigation of the amounts payable to Executive under any of the provisions of
this Agreement, nor, except as specifically provided hereunder, shall the amount
of any payment hereunder be reduced by any compensation earned by Executive as a
result of employment by another employer.

7.8 Entire Agreement. This Agreement represents the entire agreement between the
parties with respect to the subject  matter  hereof,  and  supersedes  all prior
discussions,  negotiations, and agreements concerning the subject matter hereof,
including,  but not  limited  to, any prior  severance  agreement  made  between
Executive and the Company.

7.9      Tax Withholding.  The Company shall withhold from any amounts payable
under this Agreement all federal, state, city, payroll or other taxes legally
required to be withheld.

7.10  Severability.  In the event any provision of the  Agreement  shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining  parts of the Agreement,  and the Agreement shall be construed and
enforced as if the illegal or invalid provision had not been included.

7.11     Applicable Law.  To the extent not preempted by the laws of the United
States, the law of the State of Georgia shall be the controlling law in all
matters relating to this Agreement.

7.12  Counterparts.  This Agreement may be executed in two or more counterparts,
each of  which  shall  be an  original  and all of  which  shall  be  deemed  to
constitute one and the same instrument.

         IN WITNESS  WHEREOF,  the  Company and  Executive  have  executed  this
Agreement, to be effective as of the day and year first written above.

                                                    COMPANY:

                                                    AGL RESOURCES INC.

                                                    By:

                                                    Title:

                                                    EXECUTIVE:

                                                    Signature

                  [THIS DOCUMENT HAS BEEN EXECUTED IN DUPLICATE.]Exhibit 10.1

FIRST AMENDMENT TO LOAN AGREEMENT

         FIRST AMENDMENT TO LOAN AGREEMENT dated as of June 14, 2000 (this
"Amendment") between KPT PROPERTIES, L.P., a Delaware limited partnership having
an address c/o Konover Property Trust, 11000 Regency Parkway, Suite 300, Cary,
North Carolina 27511(together with its permitted successors and assigns,
"Borrower") and LASALLE BANK NATIONAL ASSOCIATION, as Trustee for CDC Depositor
Trust ST-I (formerly known as Nomura Depositor Trust ST-I), Commercial Mortgage
Pass-Through Certificates, Series 1998 - ST-I, having an address c/o CapMark
Services, L.P., 245 Peachtree Center Avenue, NE, Suite 1800, Atlanta, Georgia
30303-1231 (together with its permitted successors and assigns, "Lender").

                                    RECITALS
                                    --------

                  A. FAC Realty, Inc. ("FAC"), the predecessor in interest to
Borrower, and Nomura Asset Capital Corporation ("NACC") entered into that
certain Loan Agreement dated as of February 19, 1997 (the "Existing Loan
Agreement") providing for a secured mortgage loan in an amount of up to
$150,000,000 (the "Original Loan") to be made to Borrower. The Original Loan is
evidenced by that certain Amended, Restated and Consolidated Promissory Note
dated as of February 19, 1997 in the principal amount of $150,000,000 made by
FAC and payable to NACC, (the "Original Note").

                  B. Prior to the execution hereof, the Existing Loan Agreement,
the Original Loan and the Original Note were assigned (i) by NACC to The Capital
Company of America LLC ("CCA"), (ii) by CCA to the Owner Trustee (hereinafter
defined) and (iii) by Owner Trustee to Lender, each pursuant to a general
assignment.

                  C. (i) This Amendment was requested by the Borrower and agreed
to by CDC Mortgage Capital, Inc. ("CDC"); (ii) CDC negotiated or established the
terms of the amendment, evaluated the Borrower's financial condition and
prepared or caused to be prepared this Amendment; and (iii) neither CapMark
Services, L.P. nor Lender engaged in any of the foregoing activities, but rather
are executing this Amendment at the request of CDC.

                  D. Pursuant to Section 3.28(k) of that certain Pooling and
Servicing Agreement, dated as of February 4, 1998, as amended (the "Pooling and
Servicing Agreement"), by and between Nomura Depositor Trust ST I, as depositor,
The Capital Company of America Client Services LLC, as servicer (the
"Servicer"), AMRESCO Services, L.P., as operating advisor, AMRESCO Management,
Inc., as special servicer, LaSalle National Bank, as trustee (the "Trustee"),
and ABN AMRO Bank N.V., as fiscal agent, for federal, state and local tax
purposes (i) the Original Loan shall be deemed to have been transferred by
LaSalle National Bank, as trustee of the Nomura Depositor Trust ST I, Commercial
Mortgage Pass-Through Certificates, Series 1998-ST I, to Wilmington Trust
Company, in its capacity as Owner Trustee (the "Owner Trustee") of Nomura Mirror
Trust ST-I-FAC (the "Mirror Trust"), and by the Owner Trustee to the Servicer,
as servicer on behalf of the Owner Trustee under the Pooling and
<PAGE>

Servicing Agreement and on behalf of Certificateholders for purposes of
effecting this modification to be held outside of the Mirror Trust and modified
as provided herein, (ii) such modification shall be deemed to have been executed
by the Trustee as agent for the Servicer, as transferee of the Loan pursuant to
clause (i), and (iii) the Loan shall be deemed to have been re-transferred by
the Servicer, as servicer on behalf of the Owner Trustee under the Pooling and
Servicing Agreement, to the Owner Trustee to hold as an asset of the Mirror
Trust, and to have been re-transferred by the Owner Trustee to the Trustee, to
hold as collateral for the related Mirror Note, immediately following the
execution hereof, it being the intention of the parties hereto that neither the
Mirror Trust nor the Trust Fund shall be considered to have "originated" the
modified Loan for purposes of Section 860L(e)(2)(C) of the Internal Revenue Code
of 1986, as amended.

                  E. Borrower and Lender desire to amend the terms and
conditions of the Existing Loan Agreement in accordance with the terms hereof.

                  NOW THEREFORE, in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Existing Loan Agreement is hereby amended as follows:

I. Modification of Existing Loan Agreement.
   ---------------------------------------

1. Section 1.01 of the Existing Loan Agreement is hereby amended as follows:

A. The following definitions are hereby deleted in their entirety: "Acquisition
Loan"; "Acquisition Mortgage"; "Acquisition Property"; "Additional Loan";
"Additional Mortgage"; "Additional Properties"; "Allocation Factor"; "Approval
Information"; "Commitment"; "Extension Fee"; "FSA"; "Lender Fee"; "Limited
Release Property"; "Loans"; "MAI"; "NACC Refinancing"; "Revolver Period";
"Revolving Credit Termination Date". All references in the Existing Loan
Agreement to the aforementioned defined terms are hereby deleted.

B. The following definitions are hereby deleted in their entirety and replaced
with the following respective definitions:

                           (a) "Allocated Loan Amount" shall mean, in respect of
                           any Property, the amount set forth for such Property
                           on Exhibit A attached hereto.

                           (b) "Applicable Margin" shall mean 3.25% per annum.

                           (c) "Borrower" shall mean KPT Properties, L.P., a
                           Delaware limited partnership, together with its
                           permitted successors and assigns.

                           (d) "Collateral Properties" shall mean the Properties
                           identified on Schedule A attached hereto.

                           (e) "Lender" shall mean LaSalle Bank N.A., as Trustee
                           for CDC Depositor Trust ST-I (formerly known as
                           Nomura Depositor Trust ST-I),
<PAGE>

                           Commercial Mortgage Pass-Through Certificates, Series
                           1998 - ST-I, together with its permitted successors
                           and assigns.

                           (f) "Note" shall mean the Second Amended and Restated
                           Renewal Promissory Note dated as of June 14, 2000
                           made by the Borrower to the Lender in the principal
                           amount of $60,000,000.

                           (g) "Required Constant" shall mean (i) 11.0% with
                           respect to any determination relating to Collateral
                           Properties that are factory outlet centers and (ii)
                           10.09% with respect to any determination relating to
                           Collateral Properties that are community shopping
                           centers.

C. The following definitions are hereby amended as follows:

                           (a) The definition of "Available Amount" is hereby
                           amended by (i) deleting the number "1.6," on the
                           fourth line thereof and replacing the same with "1.4"
                           and (ii) deleting the number "1.4," on the sixth line
                           thereof and replacing the same with "1.25".

                           (b) The definition of "FSA Properties" is hereby
                           amended by (i) changing such definition to "REMIC
                           Properties" and (ii) deleting the words "owned by
                           FSA" and replacing such words with the words "owned
                           by REMIC LLC".

                           (c) The definition of "LIBOR Rate" is hereby amended
                           by (i) inserting the word "Eurodollar" before the
                           words "Business Days" on the third line thereof and
                           (ii) deleting the words "first day of" on the third
                           line thereof and replacing such words with the words
                           "fifteenth day of the calendar month occurring
                           during" and (iii) adding the sentence "For purposes
                           hereof "Eurodollar Business Day" shall mean any day
                           other than a Saturday, Sunday or other day on which
                           banks in the City of London, England are closed for
                           interbank or foreign exchange transactions." at the
                           end thereof.

                           (d) The definition of "Loan Documents" is hereby
                           amended by inserting the words "the Clearing Account
                           Agreement (as defined in Section 11.01), the Deposit
                           Account Agreement" immediately after the words "the
                           Security Documents" on the second line thereof.

                           (e) The definition of "Release Amount" is hereby
                           amended by deleting therefrom the words "as of such
                           date" on the third line thereof.

                           (f) The definition of "Total Asset Value" is hereby
                           amended by deleting the number "0.11" at the end
                           thereof and replacing the same with the number
                           "0.12".

D. The following definitions are hereby added:
<PAGE>

                           (a) "Approved Capital Expenditures" shall mean
                           Capital Expenditures incurred by the Borrower,
                           provided that during a Cash Management Period, such
                           Capital Expenditures shall either be (i) included in
                           the approved Capital Budget for a Collateral Property
                           for the current calendar month or (ii) approved by
                           the Lender.

                           (b) "Approved Leasing Expenses" shall mean expenses
                           incurred by the Borrower in leasing space at a
                           Collateral Property pursuant to Leases entered into
                           in accordance with the Loan Documents, including
                           brokerage commissions, tenant improvements and other
                           inducements, which expenses (i) are (A) specifically
                           approved by the Lender in connection with approving
                           the applicable Lease, (B) incurred in the ordinary
                           course of business and on market terms and conditions
                           in connection with Leases which do not require the
                           Lender's approval under the Loan Documents, or (C)
                           otherwise approved by the Lender, which approval
                           shall not be unreasonably withheld or delayed, and
                           (ii) are substantiated by executed Lease documents
                           and brokerage agreements.

                           (c) "Approved Operating Expenses" shall mean during a
                           Cash Management Period, operating expenses incurred
                           by the Borrower which (i) are included in the
                           approved Operating Budget for a Collateral Property
                           for the current calendar month, (ii) are for real
                           estate taxes, insurance premiums, electric, gas, oil,
                           water, sewer or other utility service to such
                           Collateral Property or (iii) have been approved by
                           the Lender.

                           (d) "Cash Management Period" shall mean the period
                           that commences upon the Lender giving notice to the
                           Clearing Bank of the occurrence of any of the
                           following: (i) the Stated Maturity Date, (ii) a
                           Default or an Event of Default, (iii) the finding by
                           the Lender that less than 95% of (x) the Rents
                           received by or on behalf of Borrower or (y) the Net
                           Cash Flow received by or on behalf of Borrower or
                           REMIC LLC, have been deposited into the Clearing
                           Account for any calendar month or (iv) the finding by
                           the Lender that the Debt Service Ratio, after the end
                           of a calendar quarter, is less that 1.15:1; and shall
                           end upon the Lender giving notice to the Clearing
                           Bank that the sweeping of funds into the Deposit
                           Account may cease, which notice the Lender shall only
                           be required to give if (1) the Loan and all other
                           obligations under the Loan Documents have been repaid
                           in full or (2) the Stated Maturity Date has not
                           occurred and for twelve consecutive months since the
                           commencement of the existing Cash Management Period
                           (A) no Default or Event of Default has occurred, (B)
                           no event that would trigger another Cash Management
                           Period has occurred and (C) the Debt Service Ratio is
                           at least equal to 1.15:1.

                           (e) "Deposit Bank" shall mean LaSalle Bank, N.A., or
                           such other bank or depository selected by Lender in
                           its discretion.
<PAGE>

                           (f) "General Partner" shall mean Konover Property
                           Trust, Inc., a Maryland corporation.

                           (g) "Leases" shall mean all leases and other
                           agreements or arrangements heretofore or hereafter
                           entered into affecting the use, enjoyment or
                           occupancy of, or the conduct of any activity upon or
                           in, a Collateral Property or the improvements
                           relating thereto, including any guarantees,
                           extensions, renewals, modifications or amendments
                           thereof and all additional remainders, reversions and
                           other rights and estates appurtenant thereunder.

                           (h) "Loan" shall mean the loan in the principal
                           amount of $60,000,000 made to the Borrower pursuant
                           to the terms of this Agreement and evidenced by the
                           Note.

                           (i) "Maturity Date" shall mean the date on which the
                           final payment of principal of the Note becomes due
                           and payable as therein provided, whether at the
                           Stated Maturity Date, by declaration of acceleration,
                           or otherwise.

                           (j) "REMIC LLC" shall mean KPT REMIC Loan LLC, a
                           Delaware limited liability company.

                           (k) "Rents" shall mean all rents, rent equivalents,
                           moneys payable as damages (including payments by
                           reason of the rejection of a Lease in a Bankruptcy
                           Proceeding) or in lieu of rent or rent equivalents,
                           royalties (including all oil and gas or other mineral
                           royalties and bonuses), income, fees, receivables,
                           receipts, revenues, deposits (including security,
                           utility and other deposits), accounts, cash, issues,
                           profits, charges for services rendered, and other
                           payment and consideration of whatever form or nature
                           received by or paid to or for the account of or
                           benefit of the Borrower, the Manager or any of their
                           agents or employees from any and all sources arising
                           from or attributable to the Collateral Properties and
                           the improvements thereon, including all receivables,
                           customer obligations, installment payment obligations
                           and other obligations now existing or hereafter
                           arising or created out of the sale, lease, sublease,
                           license, concession or other grant of the right of
                           the use and occupancy of the Collateral Properties or
                           rendering of services by the Borrower, the Manager or
                           any of their agents or employees and proceeds, if
                           any, from business interruption or other loss of
                           income insurance.

                           (l) "Stated Maturity Date" shall mean the earlier to
                           occur of (i) December 11, 2002 and (ii) the date on
                           which the REMIC Loan becomes due and payable.
<PAGE>

                           (m) "Taxes" shall mean all real estate and personal
                           property taxes, assessments, water rates or sewer
                           rents, maintenance charges, impositions, vault
                           charges and license fees, now or hereafter levied or
                           assessed or imposed against all or part of the
                           Collateral Properties.

2. The following Sections are hereby deleted in their entirety from the Existing
Loan Agreement: Sections 2.02; 2.03; 2.04(b); 2.07; 2.12; 3.03; 6.02; 6.03;
6.04; 6.05; and 8.13.

3. Section 2.01 of the Existing Loan Agreement is hereby deleted in its entirety
and replaced with the following:

                           Section 2.01 The Loan; Generally. The Borrower
                           represents to the Lender that (i) as of the date
                           hereof the outstanding principal balance of the
                           Original Loan (including any amounts advanced
                           contemporaneously herewith) is $60,000,000, (ii)
                           there exists no claims by the Borrower against the
                           Lender or any holder of the Original Loan and (iii)
                           there are no offsets or defenses by the Borrower to
                           the payment of any amounts required under the Loan
                           Documents or otherwise to enforcement by the holder
                           of the Loan. The Lender shall have no further
                           obligations to provide any additional financing to
                           Borrower and any amounts of the Loan repaid may not
                           be reborrowed.

4. Section 2.05 of the Existing Loan Agreement is hereby deleted in its entirety
and replaced with the following:

                           Section 2.05 Note. The Loan shall be evidenced by the
                           Note.

5. Section 2.08 of the Existing Loan Agreement is hereby amended as follows:

                  (a) Subsection (c) is hereby deleted in its entirety and
                  replaced with the following:

                           (c) (i) with respect to a Release of a Collateral
                           Property, after giving effect to such Release, and
                           the payments contemplated by clause (b) above, the
                           Collateral Property Debt Service Coverage Ratio
                           (hereinafter defined) for all of the Collateral
                           Properties then remaining subject to the Liens of the
                           Mortgages shall be no less than 1.35:1 and (ii) with
                           respect to the Release of a REMIC Property, after
                           giving effect to such Release, and the payments
                           contemplated by clause (b) above, the REMIC Property
                           Coverage Ratio (hereinafter defined) for all of the
                           remaining REMIC Properties shall be no less than
                           1.55:1.

                           For purposes of this Section 2.08, the following
                           terms shall have the following meanings:
<PAGE>

                           "Collateral Property Debt Service Coverage Ratio"
                           shall mean as of any date, the ratio calculated by
                           Lender of (i) the aggregate Property NOI for all of
                           the applicable Collateral Properties on such date for
                           the 12-month period ending with the most recently
                           completed calendar month to (ii) the Collateral
                           Property Debt Service for such period ending on the
                           last day of the calendar month ending on or most
                           recently ended prior to such date.

                           "Collateral Property Debt Service" shall mean for any
                           period the greater of (i) all Interest Expense
                           payable by the Borrower during such period with
                           respect to the Loan or (ii) the sum of (x) the
                           payments of principal and Interest Expense that would
                           be payable during such period if the amount of such
                           payments were at an annual rate equal to the product
                           of (A) the aggregate Allocated Loan Amounts
                           applicable to the Collateral Properties that are
                           factory outlet centers multiplied by (B) the Required
                           Constant applicable thereto and (y) the payments of
                           principal and Interest Expense that would be payable
                           during such period if the amount of such payments
                           were at an annual rate equal to the product of (A)
                           the aggregate Allocated Loan Amounts applicable to
                           the Collateral Properties that are community shopping
                           centers multiplied by (B) the Required Constant
                           applicable thereto.

                           "REMIC Property Coverage Ratio" shall mean as of any
                           date, the ratio calculated by Lender of (i) the
                           aggregate Property NOI for all of the REMIC
                           Properties on such date for the 12-month period
                           ending with the most recently completed calendar
                           month to (ii) the greater of (x) the scheduled
                           principal and interest payments due under the REMIC
                           Note in such period or (y) the product of 11.0%
                           multiplied by the sum of (A) the outstanding
                           principal balance of the REMIC Loan on such date plus
                           (B) the aggregate sum of all Allocated Loan Amounts
                           with respect to such REMIC Properties.

                  (b)      Subsection (e) is hereby deleted in its entirety.

                  (c) The final sentence beginning with the words "If a Release
                  is made in connection with" is hereby deleted in its entirety.

6. Section 2.09 of the Existing Loan Agreement is hereby deleted in its entirety
and replaced with the following:

                           2.09 Exit Fee Upon any repayment or prepayment of all
                           or any portion of the principal amount of the Loan,
                           the Borrower shall pay to the Lender on the date of
                           such repayment or prepayment an amount equal to one
                           and one-half percent (1.50 %) of the amount of
                           principal being repaid or prepaid (the "Exit Fee").
                           Upon any acceleration of the Loan, the Borrower shall
                           immediately pay to the Lender on account of the Exit
                           Fee the amount by which (i) one and one-half percent
                           (1.50%) of the original
<PAGE>

                           principal amount of the Loan evidenced by the Note
                           exceeds (ii) the total amount of Exit Fees
                           theretofore paid by the Borrower pursuant to this
                           Section 2.09. All Exit Fees hereunder shall be deemed
                           to be earned by the Lender upon the funding of the
                           Loan.

7. The following Section 2.13 is hereby added at the end of Article 2 of the
Existing Loan Agreement.

                  2.13 Interest Rate Protection Agreements. As of the date
                  hereof, the Borrower has entered into, made all payments
                  required under, and satisfied all conditions precedent to the
                  effectiveness of, an interest rate protection agreement that
                  satisfies all of the following conditions. (such interest rate
                  protection agreement being referred to herein as the "Interest
                  Rate Protection Agreement"):

                           (a) the Interest Rate Protection Agreement is with a
                           financial institution having a long term, unsecured
                           and unsubordinated debt rating of at least "AA" by
                           S&P and "Aa2" by Moody's; has a term ending no
                           earlier than the Maturity Date; is an interest rate
                           cap in respect of a notional amount not less than the
                           maximum principal amount of the Loan that shall have
                           the effect of capping the LIBOR Rate at 7.41% per
                           annum; and provides that the only obligation of the
                           Borrower thereunder is the making of a single payment
                           upon the execution and delivery thereof.

                           (b) The Borrower's interest in such Interest Rate
                           Protection Agreement has been assigned to the Lender
                           pursuant to documentation satisfactory to the Lender
                           in form and substance, and the counterparty to such
                           Interest Rate Protection Agreement has executed and
                           delivered to the Lender an acknowledgment of such
                           assignment, which acknowledgment includes such
                           counterparty's agreement to pay directly to the
                           Lender all sums payable by such counterparty pursuant
                           to the Interest Rate Protection Agreement and shall
                           otherwise be satisfactory to the Lender in form and
                           substance.

                           (c) Notwithstanding anything in this Section 2.13 to
                           the contrary, prior to purchasing an Interest Rate
                           Protection Agreement, the Borrower shall notify CDC
                           Mortgage Capital Inc. of its intention to purchase
                           such Interest Rate Protection Agreement, which notice
                           may be telephonic and shall contain the name of the
                           proposed financial institution and the price and
                           other applicable terms relating to the proposed
                           Interest Rate Protection Agreement. Upon receipt of
                           such notice, CDC Mortgage Capital Inc. or its
                           Affiliate shall have the right to provide an Interest
                           Rate Protection Agreement to the Borrower at the same
                           (or lower) price and upon substantially the same
                           terms and conditions applicable to the proposed
                           Interest Rate Protection Agreement with such other
                           financial institution and the Borrower hereby agrees
                           to promptly enter into same with CDC Mortgage Capital
                           Inc. or its Affiliate. If CDC Mortgage Capital Inc.
                           or its
<PAGE>

                           Affiliate does not elect to provide such Interest
                           Rate Protection Agreement to the Borrower as provided
                           in the preceding sentence, the Borrower may purchase
                           the Interest Rate Protection Agreement from any
                           financial institution having a rating of at least
                           that specified in Section 2.13(a) above at the same
                           (or lower) price and upon substantially the same
                           terms and conditions applicable to the proposed
                           Interest Rate Protection Agreement first offered to
                           CDC Mortgage Capital Inc.

                           (d) The Borrower agrees that the Lender shall not
                           have any obligation, duty or responsibility to the
                           Borrower or any other Person by reason of, or in
                           connection with, any Interest Rate Protection
                           Agreement (including any duty to provide or arrange
                           any Interest Rate Protection Agreement, to consent to
                           any mortgage or pledge of the Properties or any
                           portion thereof as security for the Borrower's
                           performance of its obligations under any Interest
                           Rate Protection Agreement, or to provide any credit
                           or financial support for the obligations of the
                           Borrower or any other Person thereunder or with
                           respect thereto). No Interest Rate Protection
                           Agreement shall alter, impair, restrict, limit or
                           modify in any respect the obligation of the Borrower
                           to pay interest on the Loan as and when the same
                           becomes due and payable in accordance with the
                           provisions of the Loan Documents.

                           (e) All amounts received by the Lender from payments
                           made by the counterparty to the Interest Rate
                           Protection Agreement shall be deposited into the
                           Clearing Account and applied in the same manner as
                           repayments hereunder.

8. All references in the Existing Loan Agreement to the defined term "the
Revolving Credit Termination Date" are hereby deleted and replaced with the
words "the Maturity Date".

9. All references in the Existing Loan Agreement to the defined terms of (i) the
"Commitment" and (ii) the "Loans" are deemed to mean the "Loan".

10. All references in the Existing Loan Agreement to the defined term "FSA" are
hereby replaced with the defined term "REMIC LLC".

11. Section 3.02 of the Existing Loan Agreement is hereby amended by (i)
inserting the words "the greater of" immediately after the words "of (i)" on the
third line thereof and (ii) inserting the words "and 5.75%" immediately after
the words "for such Interest Period" on the fourth line thereof.

12. Section 4.04 of the Existing Loan Agreement is hereby amended by (i)
deleting the words "borrowing of the Loans and each" on the first line thereof
and (ii) replacing the dollar amount of "$1,000,000" at the end thereof with the
dollar amount of "$350,000" (it being understood and agreed by the parties that
with respect to any payment of principal made pursuant to Section 2.08, the
minimum amount of $350,000 shall refer to the amount paid by the
<PAGE>

Borrower as the applicable Release Amount (as opposed to the Allocated Loan
Amount for any applicable Release Property)).

13. Section 4.05 of the Existing Loan Agreement is hereby deleted in its
entirety and replaced with the following:

                  4.05 Certain Notices. Notices by the Borrower to the Lender of
                  any prepayments of the Loan shall be irrevocable and shall be
                  effective only if received by the Lender not later than 5:00
                  p.m. New York time at least 5 Business Days prior to the date
                  of the relevant prepayment. Each such notice of prepayment
                  shall specify the amount, and the date of prepayment (which
                  shall be a Business Day).

14. Section 7.01 of the Existing Loan Agreement is hereby amended by deleting
the word "corporation" on the first line thereof and replacing such word with
the word "limited partnership".

15. Section 7.14 of the Existing Loan Agreement is hereby deleted in its
entirety and replaced with the following:

                  7.14 Ownership; REIT Status. The sole general partner of the
                  Borrower is the General Partner. The General Partner currently
                  qualifies and is taxed as a real estate investment trust under
                  Subchapter M of the Code. KPT Property Holding Corp., a
                  Maryland corporation, owns in excess of 95% of the limited
                  partnership interests in Borrower. The General Partner is the
                  owner of all of the issued and outstanding capital stock of
                  KPT Property Holding Corp. and KPT REMIC Loan, Inc., all of
                  which capital stock has been validly issued, is fully paid and
                  nonassessable and is owned by the General Partner free and
                  clear of all assignments, pledges and security interests and
                  free and clear of all warrants, options and rights to
                  purchase. The Borrower is the sole member of REMIC LLC and KPT
                  REMIC Loan, Inc., a Delaware corporation, is the non-member
                  manager of REMIC LLC. The partnership interests in the
                  Borrower and the membership interests in REMIC LLC are owned
                  free and clear of all assignments, pledges and security
                  interests and free and clear of all warrants, options and
                  rights to purchase. Neither the Borrower nor REMIC LLC has any
                  obligation to any Person to purchase or repurchase any
                  ownership interest in it.

16. Section 8.01 of the Existing Loan Agreement is hereby amended as follows:
(i) the items referred to in subsections (a) and (b) to be delivered with
respect to the Borrower and FSA shall also be delivered with respect to the
General Partner; (ii) the items referred to in subsections (c) and (d) to be
delivered with respect to the Borrower and/or FSA shall instead be delivered
with respect to the General Partner; and (iii) by adding the following
subsection thereto:

                  (l) The Borrower shall prepare and submit (or shall the cause
                  Manager to prepare and submit) to the Lender within 30 days
                  after a Cash Management
<PAGE>

                  Period and by November 15th of each year thereafter during the
                  term hereof until such Cash Management Period has ended, for
                  approval by the Lender, which approval shall not be
                  unreasonably withheld or delayed, a proposed pro forma budget
                  for the Collateral Properties for the succeeding calendar year
                  (the "Annual Budget"), and, promptly after preparation
                  thereof, any revisions to such Annual Budget. The Lender's
                  failure to approve or disapprove any Annual Budget or revision
                  within 30 days after the Lender's receipt thereof shall be
                  deemed to constitute the Lender's approval thereof. The Annual
                  Budget shall consist of (i) an operating expense budget (the
                  "Operating Budget") showing, on a month-by-month basis, in
                  reasonable detail, each line item of the Borrower's
                  anticipated operating income and operating expenses (on a cash
                  and accrual basis), including amounts required to establish,
                  maintain and/or increase any monthly payments required
                  hereunder, and (ii) a Capital Expense budget (the "Capital
                  Budget") showing, on a month-by-month basis, in reasonable
                  detail, each line item of anticipated Capital Expenditures.

17. Section 8.03 of the Existing Loan Agreement is hereby deleted in its
entirety and replaced with the following:

                  8.03 Corporate Existence, Etc. The Borrower will, and will
                  cause REMIC LLC to, preserve and maintain its limited
                  partnership or limited liability company existence, as
                  applicable, and all of its material rights, privileges and
                  franchises; comply with the requirements of all applicable
                  laws, rules, regulations and orders of governmental or
                  regulatory authorities if failure to comply with such
                  requirements would have a Material Adverse Effect; pay and
                  discharge all taxes, assessments and governmental charges or
                  levies imposed on it or on its income or profits or on any of
                  its property prior to the date on which penalties attach
                  thereto, except for any such tax, assessment, charge or levy
                  the payment of which is being contested in good faith and by
                  proper proceedings and against which adequate reserves are
                  being maintained; maintain all of its properties used or
                  useful in its business in good working order and condition,
                  ordinary wear and tear excepted; and permit representatives of
                  the Lender, during normal business hours and upon reasonable
                  prior notice, and consistent with the rights of tenants under
                  their leases, to examine, copy and make extracts from its
                  books and records, to inspect its properties, and to discuss
                  its business and affairs with its officers, all to the extent
                  reasonably requested by the Lender. The General Partner will
                  continue to qualify and be taxed as a real estate investment
                  trust under Subchapter M of the Code and listed on the New
                  York Stock Exchange, NASDAQ or the American Stock Exchange.
                  REMIC LLC shall at all times continue to be 100% owned by the
                  Borrower.

18. The following Section 11 is hereby added immediately after Section 10 of the
Existing Loan Agreement:

                  Section 11 Cash Management and Reserves.
<PAGE>

                  11.01 Cash Management Arrangements. (a) The Borrower shall
                  cause (i) all Net Cash Flow to be transmitted directly by
                  REMIC LLC and (ii) all Rents to be transmitted directly by
                  non-residential tenants of each Collateral Property, in each
                  such case, into a trust account (the "Clearing Account")
                  maintained by the Borrower at a bank selected by the Borrower
                  (a "Clearing Bank") as more fully described in the Clearing
                  Account Agreement among the Borrower, the Lender and the First
                  Union Bank (the "Clearing Account Agreement"). Without in any
                  way limiting the foregoing, all Net Cash Flow and all Rents
                  received by the Borrower or the Manager shall be deposited
                  into the Clearing Account within one Business Day of receipt.
                  Funds deposited into the Clearing Account shall be swept by
                  the Clearing Bank on a daily basis into the Borrower's
                  operating account at the Clearing Bank, unless a Cash
                  Management Period is continuing, in which event such funds
                  shall be swept on a daily basis into an Eligible Account at
                  the Deposit Bank controlled by the Lender (the "Deposit
                  Account") and applied and disbursed in accordance with this
                  Agreement. Funds in the Deposit Account shall be invested at
                  the Lender's discretion only in Permitted Investments. The
                  Lender will also establish subaccounts of the Deposit Account
                  which shall at all times be Eligible Accounts (and may be
                  ledger or book entry accounts and not actual accounts) (such
                  subaccounts are referred to herein as "Subaccounts"). At all
                  times other than during the continuance of a Cash Management
                  Period, the Lender may, in its discretion, elect to maintain
                  the deposits and reserves required under this Agreement in an
                  Eligible Account at a bank or other depository selected by the
                  Lender other than the Deposit Bank in which case, all
                  references to the Deposit Account and any Subaccounts
                  hereunder shall be deemed to include such Eligible Account and
                  the subaccounts of any such Eligible Account and all funds in
                  such Eligible Account shall be invested at the Lender's
                  discretion only in Permitted Investments. The Deposit Account
                  and any Subaccount will be under the sole control and dominion
                  of the Lender, and the Borrower shall have no right of
                  withdrawal therefrom. The Borrower shall pay for all expenses
                  of opening and maintaining all of the above accounts.

                  11.02 Taxes and Insurance. The Borrower shall pay to the
                  Lender on each Interest Payment Date (i) one-twelfth of the
                  Taxes that the Lender estimates will be payable during the
                  next 12 months in order to accumulate with Lender sufficient
                  funds to pay all such Taxes at least 30 days prior to their
                  respective due dates and (ii) one-twelfth of the insurance
                  premiums that the Lender estimates will be payable for the
                  renewal of the coverage afforded by the insurance policies for
                  the Collateral Properties upon the expiration thereof in order
                  to accumulate with Lender sufficient funds to pay all such
                  insurance premiums at least 30 days prior to the expiration of
                  the insurance policies; provided, however, that the payments
                  required under this clause (ii) shall not commence unless the
                  insurance premiums shall become due within the next succeeding
                  12 month period. Such amounts will be transferred by the
                  Lender to a Subaccount (the "Tax and Insurance Subaccount").
                  Provided that no Default or Event of Default has occurred and
                  is continuing, Lender will (a) apply funds in the Tax and
                  Insurance Subaccount to payments of Taxes and insurance
                  premiums required to be made by
<PAGE>

                  the Borrower pursuant to Sections 3 and 4 of the Mortgages,
                  provided that the Borrower has promptly supplied the Lender
                  with notices of all Taxes and insurance premiums due, or (b)
                  reimburse the Borrower for such amounts upon presentation of
                  evidence of payment and a certificate from a senior financial
                  officer of the Borrower in form and substance satisfactory to
                  the Lender; subject however to the Borrower's right to contest
                  Taxes in accordance with Section 4(b) of the Mortgages. In
                  making any payment relating to Taxes and insurance premiums,
                  the Lender may do so according to any bill, statement or
                  estimate procured from the appropriate public office (with
                  respect to Taxes) or insurer or agent (with respect to
                  insurance premiums), without inquiry into the accuracy of such
                  bill, statement or estimate or into the validity of any tax,
                  assessment, sale, forfeiture, tax lien or title or claim
                  thereof. If the Lender determines in its reasonable judgment
                  that the funds in the Tax and Insurance Subaccount will be
                  insufficient to pay (or in excess of) the Taxes or insurance
                  premiums next coming due, the Lender may increase (or
                  decrease) the monthly contribution required to be made by the
                  Borrower to the Tax and Insurance Subaccount.

                  11.03 Capital Expense Reserve. With respect to each Collateral
                  Property, the Borrower shall pay to the Lender on each
                  Interest Payment Date the amount set forth for such Collateral
                  Property on Exhibit B attached hereto. The Lender will
                  transfer such amount into a Subaccount (the "Capital Reserve
                  Subaccount"). Additionally, upon thirty (30) days' prior
                  notice to the Borrower, the Lender may reassess the amount of
                  the monthly payment required under this Section 11.03 from
                  time to time in its reasonable discretion (based upon its then
                  current underwriting standards). If the funds in the Capital
                  Reserve Subaccount shall exceed the amounts due for Approved
                  Capital Expenditures pursuant to the terms hereof, the Lender
                  may return any excess to the Borrower or, if future payments
                  hereunder are then required, credit such excess against such
                  future payments. If the Lender determines in its reasonable
                  judgment that the funds in the Capital Reserve Subaccount will
                  be insufficient to pay (or in excess of) the amounts due or to
                  become due for Approved Capital Expenditures, the Lender may
                  increase (or decrease) the monthly contribution required to be
                  made by the Borrower to the Capital Reserve Subaccount.
                  Provided that no Default or Event of Default has occurred and
                  is continuing, the Lender shall disburse funds held in the
                  Capital Reserve Subaccount to the Borrower, within 15 days
                  after the delivery by the Borrower to the Lender of a request
                  therefor (but not more often than once per month), in
                  increments of at least $5,000 provided that (i) such
                  disbursement is for an Approved Capital Expenditures; (ii)
                  Lender shall have (if it desires) verified (by an inspection
                  conducted at the Borrower's expense) performance of the work
                  associated with such Approved Capital Expenditures if the cost
                  of such work exceeds $50,000; and (iii) the request for
                  disbursement is accompanied by (A) a certificate from a senior
                  financial officer of the Borrower certifying (w) that such
                  funds will be used to pay or reimburse the Borrower for
                  Approved Capital Expenditures and a description thereof, (x)
                  that all outstanding trade payables (other than those to be
                  paid from the requested disbursement or those constituting
                  Permitted Indebtedness) have been paid in full, (y) that the
                  same has not been the
<PAGE>

                  subject of a previous disbursement, and (z) that all previous
                  disbursements have been used to pay the previously identified
                  Approved Capital Expenditures, and (B) reasonably detailed
                  documentation satisfactory to the Lender as to the amount,
                  necessity and purpose therefor. Any such disbursement of more
                  than $10,000 to pay (rather than reimburse) Approved Capital
                  Expenditures may, at the Lender's option, be made by joint
                  check payable to the Borrower and the payee on such Approved
                  Capital Expenditures.

                  11.04 Rollover Reserves. With respect to each Collateral
                  Property, the Borrower shall pay to the Lender on each
                  Interest Payment Date the amount set forth for such Collateral
                  Property on Exhibit C attached hereto. The Lender will
                  transfer such amount into a Subaccount (the "Rollover Reserve
                  Subaccount"). The Borrower shall also pay to Lender for
                  transfer into the Rollover Reserve Subaccount all payments
                  received from tenants in connection with the early termination
                  or cancellation of any Leases, including fees, penalties and
                  commissions. If the amount in the Rollover Reserve Subaccount
                  shall exceed the amounts due for Approved Leasing Expenses
                  pursuant to the terms hereof, the Lender shall, in its
                  discretion, return any excess to the Borrower, credit such
                  excess against future payments to the Rollover Reserve
                  Subaccount or allocate such excess to other Subaccounts. If
                  the Lender determines in its reasonable judgment that the
                  funds in the Rollover Reserve Subaccount will be insufficient
                  to pay (or in excess of) the amounts due or to become due for
                  Approved Leasing Expenses, the Lender may increase (or
                  decrease) the monthly contribution required to be made by the
                  Borrower to the Rollover Reserve Subaccount. Provided that no
                  Default or Event of Default has occurred and is continuing,
                  the Lender shall disburse funds held in the Rollover Reserve
                  Subaccount to the Borrower, within 15 days after the delivery
                  by Borrower to Lender of a request therefor (but not more
                  often than once per month), in increments of at least $5,000,
                  provided (i) such disbursement is for an Approved Leasing
                  Expense; (ii) Lender shall have (if it desires) verified (by
                  an inspection conducted at the Borrower's expense) performance
                  of any construction work associated with such Approved Leasing
                  Expense; and (iii) the request for disbursement is accompanied
                  by (A) a certificate from a senior financial officer of the
                  Borrower certifying (w) that such funds will be used only to
                  pay (or reimburse Borrower for) Approved Leasing Expenses and
                  a description thereof, (x) that all outstanding trade payables
                  (other than those to be paid from the requested disbursement)
                  have been paid in full, (y) that the same has not been the
                  subject of a previous disbursement, and (z) that all previous
                  disbursements have been used only to pay (or reimburse the
                  Borrower for) the previously identified Approved Leasing
                  Expenses, and (B) reasonably detailed supporting documentation
                  as to the amount, necessity and purpose therefor. Any such
                  disbursement of more than $10,000 to pay (rather than
                  reimburse) Approved Leasing Expenses may, at the Lender's
                  option, be made by joint check payable to the Borrower and the
                  payee of such Approved Leasing Expenses.
<PAGE>

                  11.05 Operating Expense Subaccount. During a Cash Management
                  Period, Rents shall be transferred into a Subaccount (the
                  "Operating Expense Subaccount") as provided in Section 11.09.
                  Provided no Default or Event of Default has occurred and is
                  continuing, the Lender shall disburse funds held in the
                  Operating Expense Subaccount to the Borrower, within 15 days
                  after delivery by Borrower to Lender of a request therefor
                  (but not more often than once per month), in increments of at
                  least $1,000, provided (i) such disbursement is for an
                  Approved Operating Expense; and (ii) such disbursement is
                  accompanied by (A) a certificate from a senior financial
                  officer of the Borrower certifying (w) that such funds will be
                  used to pay Approved Operating Expenses and a description
                  thereof, (x) that all outstanding trade payables (other than
                  those to be paid from the requested disbursement) have been
                  paid in full, (y) that the same has not been the subject of a
                  previous disbursement, and (z) that all previous disbursements
                  have been or will be used to pay the previously identified
                  Approved Operating Expenses, and (B) reasonably detailed
                  documentation satisfactory to the Lender as to the amount,
                  necessity and purpose therefor.

                  11.06 Casualty/Condemnation Subaccount. The Borrower shall
                  pay, or cause to be paid, to the Lender all Proceeds or Awards
                  due to any Casualty or Condemnation to be transferred to a
                  Subaccount (the "Casualty/Condemnation Subaccount"). All
                  amounts in the Casualty/Condemnation Subaccount shall
                  disbursed in accordance with the provisions of the Mortgages.

                  11.07 Security Deposits. During a Cash Management Period, the
                  Borrower shall, upon Lender's request, if permitted by
                  applicable Legal Requirements, turn over to the Lender the
                  security deposits (and any interest theretofore earned
                  thereon) under Leases, to be held by the Lender in a
                  Subaccount (the "Security Deposit Subaccount") subject to the
                  terms of the Leases. Security deposits held in the Security
                  Deposit Subaccount will be released by the Lender upon notice
                  from the Borrower together with such evidence as the Lender
                  may reasonably request that such security deposit is required
                  to be returned to a tenant pursuant to the terms of a Lease or
                  may be applied as Rent pursuant to the rights of the Borrower
                  under the applicable Lease. Any letter of credit or other
                  instrument that the Borrower receives in lieu of a cash
                  security deposit under any Lease entered into after the date
                  hereof shall (i) be maintained in full force and effect in the
                  full amount unless replaced by a cash deposit as hereinabove
                  described and (ii) if permitted pursuant to any Legal
                  Requirements, name the Lender as payee or mortgagee thereunder
                  (or at the Lender's option, be fully assignable to the
                  Lender).

                  11.08 Grant of Security Interest; Application of Funds. As
                  security for payment of the Debt and the performance by the
                  Borrower of all other terms, conditions and provisions of the
                  Loan Documents, the Borrower hereby pledges and assigns to the
                  Lender, and grants to the Lender a security interest in, all
                  the Borrower's right, title and interest in and to all Rents
                  and in and to all payments to or monies held in the Clearing
                  Account, the Deposit Account, all Subaccounts created
<PAGE>

                  pursuant to this Agreement (collectively, the "Cash Management
                  Accounts"). The Borrower hereby grants to the Lender a
                  continuing security interest in, and agrees to hold in trust
                  for the benefit of the Lender, all Rents in its possession
                  prior to the (i) payment of such Rents to the Lender or (ii)
                  deposit of such Rents into the Deposit Account. The Borrower
                  shall not, without obtaining the prior written consent of the
                  Lender, further pledge, assign or grant any security interest
                  in any Cash Management Account, or permit any Lien to attach
                  thereto, or any levy to be made thereon, or any UCC-l
                  Financing Statements, except those naming the Lender as the
                  secured party, to be filed with respect thereto. This
                  Agreement is, among other things, intended by the parties to
                  be a security agreement for purposes of the UCC. Upon the
                  occurrence and during the continuance of an Event of Default,
                  the Lender may apply any sums in any Cash Management Account
                  in any order and in any manner as the Lender shall elect in
                  the Lender's discretion without seeking the appointment of a
                  receiver and without adversely affecting the rights of the
                  Lender to foreclose the Lien of any Mortgage or exercise its
                  other rights under the Loan Documents. Cash Management
                  Accounts shall not constitute trust funds and may be
                  commingled with other monies held by the Lender. The Borrower
                  shall be entitled to receive on a semi-annual basis interest
                  on any balance in the Deposit Account and any Subaccounts
                  (including any Eligible Account maintained at a bank or other
                  depository other than the Deposit Bank selected by Lender in
                  accordance with Section 11.01) at a rate equal to the U.S. and
                  Regional Composite National Bank Average Retail Savings Money
                  Market CD Yield, from time to time. Upon payment in full of
                  the Loan and all other amounts owed by the Borrower under the
                  Loan Documents, the Lender shall cause the amounts, if any,
                  remaining in the Cash Managements Accounts to be promptly
                  remitted to the Borrower.

                  11.09    Property Cash Flow Allocation.

                           (a) During any Cash Management Period, any Rents
                           deposited into the Deposit Account during the
                           immediately preceding Interest Period shall be
                           applied on each Interest Payment Date as follows in
                           the following order of priority: (i) First, to make
                           payments into the Tax and Insurance Subaccount as
                           required under Section 11.02; (ii) Second, to pay the
                           monthly portion of the fees charged by the Deposit
                           Bank in accordance with the Deposit Account
                           Agreement; (iii) Third, to the Lender to pay the
                           interest due on such Interest Payment Date (plus, if
                           applicable, interest at the Post Default Rate and all
                           other amounts, other than those described under other
                           clauses of this Section 11.09(a), then due to the
                           Lender under the Loan Documents); (iv) Fourth, to
                           make payments into the Capital Reserve Subaccount as
                           required under Section 11.03; (v) Fifth, to make
                           payments into the Rollover Reserve Subaccount as
                           required under Section 11.04; (vi) Sixth, to make
                           payments for Approved Operating Expenses as required
                           under Section 11.05; and (vii) Lastly, payments to
                           the Borrower of any excess amounts.
<PAGE>

                           (b) The failure of the Borrower to make all of the
                           payments required under clauses (i) through (vi) of
                           Section 11.09(a) in full on each Interest Payment
                           Date shall constitute an Event of Default under this
                           Agreement.

                           (c) Notwithstanding anything to the contrary
                           contained in this Section 11.09, after the occurrence
                           of a Default or an Event of Default, the Lender may
                           apply all Rents deposited into the Deposit Account
                           and other proceeds of repayment in such order and in
                           such manner as the Lender shall elect.

19. The "Address for Notices" set forth on the signature pages of the Existing
Loan Agreement is hereby amended (i) to provide that notices to the Lender
should be sent to LaSalle Bank N.A., as Trustee for CDC Depositor Trust ST-I
(formerly known as Nomura Depositor Trust ST-I), Commercial Mortgage
Pass-Through Certificates, Series 1998 - ST-I, c/o CapMark Services, L.P., 245
Peachtree Center Avenue N.E., Suite 1800, Atlanta, Georgia 30303-1231, Attention
Katherine M. Saathoff, Vice President, Telecopier (404) 654-2726, with copies
to: CDC Mortgage Capital Inc., 9 West 57th Street, 36th Floor, New York, New
York 10019; Attention: Real Estate Administration (Gary DiGiuseppe), Telecopier
(212) 891-6851 and with copies to: Kaye, Scholer, Fierman, Hays & Handler, LLP,
425 Park Avenue, New York, New York 10022, Attention: Stephen Gliatta,
Telecopier: (212) 836-8689, (ii) by adding the words "and Attn: Legal
Department, Telecopier No.: (919) 234-3251" after the words "Attn: C. Cammack
Morton", (iii) by deleting the words "Michaela M. Twomey, Esq., FAC Realty,
Inc., 1095 Old Cedar Road, McLean, Virginia 22102, Telecopier No: (703)
506-9137" and (iv) by changing the address of Mayer, Brown & Platt to 1909 K
Street, N.W., Washington, D.C., 20006, Telecopier No.: (202) 263-3300.

20. Schedule A of the Existing Loan Agreement is hereby deleted in its entirety
and replaced with the Schedule A attached to this Amendment.

II. Representations. The Borrower hereby represents and warrants to the Lender
as of the date hereof as follows:

1. Authorization and Power. The Borrower has the power and requisite authority
to execute, deliver and perform its obligations under this Amendment and any
other document executed in connection herewith and is duly authorized to, and
has taken all action necessary to authorize it to, execute, deliver and perform
its obligations under this Amendment.

2. Valid and Binding Obligations. This Amendment constitutes legal, valid and
binding obligations of the Borrower enforceable in accordance with its terms.

3. Consents, Etc. No consent, approval, authorization or order of any court or
governmental authority or any third party is required in connection with the
execution and delivery by the Borrower of this Amendment or to consummate the
transactions contemplated hereby, which consent has not been obtained.
<PAGE>

4. No Offsets; Defenses. There are no existing claims by the Borrower against
the Lender and there are no offsets or defenses by the Borrower to the payment
of any amounts required under the Loan Documents or otherwise to the enforcement
by the Lender of the Loan Documents.

III. Reaffirmation and Ratification. The Borrower hereby ratifies and reaffirms
the obligations, waivers, indemnities and covenants made under the Loan
Documents to which it is bound. The Existing Loan Agreement (as amended hereby)
and each of the Loan Documents is hereby ratified and confirmed and shall
continue in full force and effect.

IV. Successors and Assigns. This Amendment shall be binding upon and shall inure
to the benefit of each of the parties hereto and their respective successors and
assigns.

V. Counterparts. This Amendment may be executed in multiple counterparts, each
of which shall constitute an original, but all of which shall constitute one
original.

                  [Remainder of page intentionally left blank]
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their duly authorized representatives, all as of the day and
year first above written.

                    BORROWER:
                    --------

                    KPT PROPERTIES, L.P., a Delaware limited partnership

                    By:  Konover Property Trust, Inc., its general partner

                         By: ____________________________
                             Name:
                             Title:

                    LENDER:
                    ------

                    LASALLE BANK NATIONAL ASSOCIATION,
                    as Trustee for CDC Depositor Trust
                    ST-I (formerly known as Nomura
                    Depositor Trust ST-I), Commercial
                    Mortgage Pass-Through Certificates,
                    Series 1998 - ST-I

                    By:  CapMark Services, L.P., a Texas limited partnership, it
                         authorized agent

                         By: Pearl Mortgage, Inc., a Delaware corporation,
                             general partner

                             By: ____________________________
                                 Name: Katherine M. Saathoff
                                 Title: Vice President
<PAGE>

                                 ACKNOWLEDGMENT
                                 --------------

The undersigned Owner Trustee hereby acknowledges the terms of the foregoing.

Wilmington Trust Company, in its capacity as Owner Trustee of CDC Mirror Trust
ST-I-FAC (formerly known as Nomura Mirror Trust ST-I-FAC)

By:  _____________________
     David A. Vanaskey, Jr.
     Assistant Vice President
<PAGE>

                                    EXHIBIT A
                                    ---------

                             Allocated Loan Amounts
                             ----------------------

                                 (See Attached)
<PAGE>

                                    EXHIBIT B
                                    ---------

                    Capital Expense Reserve Monthly Payments
                    ----------------------------------------

1.   Crossroads at Mandarin Shopping Center, Jacksonville, FL             $7,322

2.   Eastgate Plaza, Pensacola, FL                                        $6,321

3.   Factory Stores of America, Lake Park, GA                             $1,750

4.   Factory Stores of America, Tupelo, MS                                $4,206

5.   Gateway Shopping Center, Wilson, NC                                  $2,044

6.   Braves Village Shopping Center, Socastee, SC                         $2,840

7.   Grove Park Shopping Center, Orangeburg, SC                           $1,344

8.   Robertson Corners Shopping Centers, Walterboro, SC                   $  595

9.   Factory Stores of America, Nashville, TN                             $3,573

10.  Factory Stores of America, Hempstead, TX                             $1,431

<PAGE>

                                    EXHIBIT C
                                    ---------

                        Rollover Reserve Monthly Payments
                        ---------------------------------

1.  Crossroads at Mandarin Shopping Center, Jacksonville, FL             $ 2,479

2.  Eastgate Plaza, Pensacola, FL                                        $ 8,003

3.  Factory Stores of America, Lake Park, GA                             $ 4,167

4.  Factory Stores of America, Tupelo, MS                                $ 3,333

5.  Gateway Shopping Center, Wilson, NC                                  $ 2,052

6.  Braves Village Shopping Center, Socastee, SC                         $ 2,457

7.  Grove Park Shopping Center, Orangeburg, SC                           $ 5,274

8.  Robertson Corners Shopping Centers, Walterboro, SC                   $ 1,137

9.  Factory Stores of America, Nashville, TN                             $14,467

10. Factory Stores of America, Hempstead, TX                             $ 2,083
<PAGE>

                                   SCHEDULE A
                                   ----------

                     Collateral Properties/REMIC Properties
                     --------------------------------------

                              Collateral Properties
                              ---------------------

1.   Crossroads at Mandarin Shopping Center, Jacksonville, FL
2.   Eastgate Plaza, Pensacola, FL
3.   Factory Stores of America, Lake Park, GA
4.   Factory Stores of America, Tupelo, MS
5.   Gateway Shopping Center, Wilson, NC
6.   Braves Village Shopping Center, Socastee, SC
7.   Grove Park Shopping Center, Orangeburg, SC
8.   Robertson Corners Shopping Centers, Walterboro, SC
9.   Factory Stores of America, Nashville, TN
10.  Factory Stores of America, Hempstead, TX

                            REMIC Properties
                            ----------------

1.   Factory Stores of America, Arcadia, LA
2.   Factory Stores of America, Crossville, TN
3.   Factory Stores of America, Draper, UT
4.   Factory Stores of America, Hanson, KY
5.   Factory Stores of America, Iowa, LA
6.   Factory Stores of America, Mesa, AZ
7.   Factory Stores of America, Tucson, AZ
8.   Factory Stores of America, Union City, TN
9.   Factory Stores of America, West Fankfort, IL
10.  Factory Stores of America, Kittery, ME
11.  Factory Stores of America, Lake George, NY
12.  Factory Stores of America, La Marque, TX
13.  Las Vegas Factory Stores, Las Vegas, NV
14.  Factory Stores of America, North Bend, WA
15.  Factory Stores of America, Vacaville, CA
16.  Lenoir II
17.  Factory Stores of America, Livingston, TX
18.  Factory Stores of America, Mineral Wells, TX
19.  Oakland Park
20.  Petersburg - Food Lion
21.  Stanton Square, North Carolina
22.  Tower Shopping Center, North Carolina
23.  Factory Stores of America, Corsicana, TX

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]