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                                                                   EXHIBIT 10.38

                            CREDIT LINE DEED OF TRUST
                   ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND
                                 FIXTURE FILING

                                     MADE BY

                    GLIMCHER PROPERTIES LIMITED PARTNERSHIP,

                                   AS GRANTOR

                                       TO

                                MOLLY BABER FRICK

                                   AS TRUSTEE
                               FOR THE BENEFIT OF

                          KEYBANK NATIONAL ASSOCIATION

                                 AS BENEFICIARY

                          Dated as of: October 17, 2003

                   PREPARED BY AND UPON RECORDATION RETURN TO:

                       Sonnenschein Nath & Rosenthal, LLP
                                8000 Sears Tower
                                233 South Wacker
                             Chicago, Illinois 60606
                           Attention: Pat Moran, Esq.

Huntington, West Virginia

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                            CREDIT LINE DEED OF TRUST
                   ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND
                                 FIXTURE FILING

                            Project Commonly Known As

                                "Pea Ridge Plaza"

         THIS CREDIT LINE DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY AGREEMENT
AND FIXTURE FILING (this "Deed of Trust") is made as of October __, 2003, by
Glimcher Properties Limited Partnership, a Delaware limited partnership
("Grantor") whose address is 150 East Gay Street, Columbus, Ohio 43215, in favor
of MOLLY BABER FRICK, of BAILES, CRAIG & YON ("Trustee") a resident of Cabell
County, West Virginia, at 401 Tenth Street, Huntington, West Virginia, 25720 for
the benefit of KEYBANK NATIONAL ASSOCIATION, as administrative agent for itself
and one or more Lenders (as defined in that certain Credit Agreement bearing the
date October __, 2003 by and between Glimcher Properties Limited Partnership, a
Delaware limited partnership (the "Borrower"), such Lenders and KEYBANK NATIONAL
ASSOCIATION, as administrative agent, hereinafter the "Credit Agreement"),
(together with its successors and assigns, the "Beneficiary"), whose address is
127 Public Square, Cleveland, Ohio 44114.

1. GRANT AND SECURED OBLIGATIONS.

         1.1      Grant. Borrower has executed and delivered to the Lenders
certain promissory notes and may in the future execute and deliver to the
Lenders additional promissory notes (the promissory notes, made in favor of the
Lenders, together with any amendments or allonges thereto, or restatements,
replacements or renewals thereof, or new promissory notes to new Lenders under
the Credit Agreement, are collectively referred to herein as the "Notes"), in
and by which the Borrower promises to pay the principal of all Loans under such
Credit Agreement and interest at the rate and in installments as provided in the
Notes, with a final payment of the outstanding principal balance and accrued and
unpaid interest being due on or before October __, 2006. The maximum aggregate
principal amount of the Loans evidenced by the Notes shall be $150,000,000. The
indebtedness secured hereby shall be governed by the terms and conditions of the
Credit Agreement. To the extent there may be any inconsistency between the terms
and provisions of this Deed of Trust and the terms and provisions of the Credit
Agreement, the terms and provisions of the Credit Agreement shall govern and
control. All capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to such terms in the Credit Agreement.

         In consideration of the debt evidenced by the Notes and the Commitments
evidenced by the Credit Agreement and to secure the timely payment of both
principal and interest in accordance with the terms and provisions of the Notes
and in accordance with the terms, provisions and limitations of this Deed of
Trust, to secure the payment of any and all amounts advanced by the
Administrative Agent or the Lenders with respect to the Premises for the payment
of taxes, assessments, insurance premiums or any other costs incurred in the
protection of the Premises, and to secure the performance of the covenants and
agreements contained herein and in the Notes, the Credit Agreement, the
Guaranty, the Subsidiary Guaranty and any other documents evidencing and
securing the loan secured hereby or delivered to Beneficiary pursuant

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to the Credit Agreement (collectively, the "Loan Documents") to be performed by
Grantor, and to secure all Rate Management Transactions entered into with the
Administrative Agent or any of the Lenders in connection with the Credit
Agreement, and for the purpose of securing payment and performance of the
Secured Obligations defined and described in Section 1.2 below, Grantor hereby
irrevocably and unconditionally GRANTS, BARGAINS, SELLS, CONVEYS, MORTGAGES and
WARRANTS to Trustee, with power of sale and with right of entry and possession,
all estate, right, title and interest which Grantor now has or may later acquire
in and to the following property (all or any part of such property, or any
interest in all or any part of it, as the context may require, the "Property"):

                  (a) The real property located in the County of Cabell, State
         of West Virginia, as described in Exhibit A, together with all existing
         and future easements and rights affording access to it (the
         "Premises"); together with

                  (b) All buildings, structures and improvements now located or
         later to be constructed on the Premises (the "Improvements"); together
         with

                  (c) All existing and future appurtenances, privileges,
         easements, franchises and tenements of the Premises, including all
         minerals, oil, gas, other hydrocarbons and associated substances,
         sulphur, nitrogen, carbon dioxide, helium and other commercially
         valuable substances which may be in, under or produced from any part of
         the Premises, all development rights and credits, air rights, water,
         water rights (whether riparian, appropriative or otherwise, and whether
         or not appurtenant) and water stock, and any Premises lying in the
         streets, roads or avenues, open or proposed, in front of or adjoining
         the Premises and Improvements; together with

                  (d) All existing and future leases, subleases, subtenancies,
         licenses, occupancy agreements and concessions ("leases") relating to
         the use and enjoyment of all or any part of the Premises and
         Improvements, and any and all guaranties and other agreements relating
         to or made in connection with any of such leases; together with

                  (e) All real property and improvements on it, and all
         appurtenances and other property and interests of any kind or
         character, whether described in Exhibit A or not, which may be
         reasonably necessary or desirable to promote the present and any
         reasonable future beneficial use and enjoyment of the Premises and
         Improvements; together with

                  (f) All goods, materials, supplies, chattels, furniture,
         fixtures, equipment and machinery now or later to be attached to,
         placed in or on, or used in connection with the use, enjoyment,
         occupancy or operation of all or any part of the Premises and
         Improvements, whether stored on the Premises or elsewhere, including
         all pumping plants, engines, pipes, ditches and flumes, and also all
         gas, electric, cooking, heating, cooling, air conditioning, lighting,
         refrigeration and plumbing fixtures and equipment, all of which shall
         be considered to the fullest extent of the law to be real property for
         purposes of this Deed of Trust and any manufacturer's warranties with
         respect thereto; together with

                  (g) All building materials, equipment, work in process or
         other personal property of any kind, whether stored on the Premises or
         elsewhere, which have been or later will

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         be acquired for the purpose of being delivered to, incorporated into or
         installed in or about the Premises or Improvements; together with

                  (h) All of Grantor's interest in and to all operating accounts
         pertaining to the Property and the Loan funds, whether disbursed or
         not; together with

                  (i) All rights to the payment of money, accounts, accounts
         receivable, reserves, deferred payments, refunds, cost savings,
         payments and deposits, whether now or later to be received from third
         parties (including all earnest money sales deposits) or deposited by
         Grantor with third parties (including all utility deposits), contract
         rights, development and use rights, governmental permits and licenses,
         applications, architectural and engineering plans, specifications and
         drawings, as-built drawings, chattel paper, instruments, documents,
         notes, drafts and letters of credit (other than letters of credit in
         favor of Beneficiary), which arise from or relate to construction on
         the Premises or to any business now or later to be conducted on it, or
         to the Premises and Improvements generally and any builder's or
         manufacturer's warranties with respect thereto; together with

                  (j) All insurance policies pertaining to the Premises and all
         proceeds, including all claims to and demands for them, of the
         voluntary or involuntary conversion of any of the Premises,
         Improvements or the other property described above into cash or
         liquidated claims, including proceeds of all present and future fire,
         hazard or casualty insurance policies and all condemnation awards or
         payments now or later to be made by any public body or decree by any
         court of competent jurisdiction for any taking or in connection with
         any condemnation or eminent domain proceeding, and all causes of action
         and their proceeds for any damage or injury to the Premises,
         Improvements or the other property described above or any part of them,
         or breach of warranty in connection with the construction of the
         Improvements, including causes of action arising in tort, contract,
         fraud or concealment of a material fact; together with

                  (k) All of Grantor's rights in and to all Rate Management
         Transactions entered into with the Administrative Agent or any of the
         Lenders in connection with the Credit Agreement;

                  (l) All books and records pertaining to any and all of the
         property described above, including computer-readable memory and any
         computer hardware or software necessary to access and process such
         memory ("Books and Records"); together with

                  (m) All proceeds of, additions and accretions to,
         substitutions and replacements for, and changes in any of the property
         described above.

         Capitalized terms used above and elsewhere in this Deed of Trust
without definition have the meanings given them in the Credit Agreement referred
to in Subsection 1.2(a)(iii) below.

         1.2      Secured Obligations.

                  (a) Grantor makes the grant, conveyance, and mortgage set
         forth in Section 1.1 above, and grants the security interest set forth
         in Section 3 below for the purpose of

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         securing the following obligations (the "Secured Obligations") in any
         order of priority that Beneficiary may choose:

                           (i)      Payment of all obligations at any time owing
                  under the Notes under the terms of the Credit Agreement; and

                           (ii)     Payment and performance of all obligations
                  of Grantor under this Deed of Trust; and

                           (iii)    Payment and performance of all obligations
                  of Grantor under the Credit Agreement; and

                           (iv)     Payment and performance of any obligations
                  of Grantor under any Loan Documents which are executed by
                  Grantor; and

                           (v)      Payment and performance of all obligations
                  of Grantor arising from any Rate Management Transactions
                  entered into with the Administrative Agent or any of the
                  Lenders in connection with the Credit Agreement. Rate
                  Management Transactions shall mean an interest rate hedging
                  program through the purchase by Grantor from the
                  Administrative Agent or any of the Lenders in connection with
                  an interest rate swap, cap, or such other interest rate
                  protection product with respect to the Credit Agreement; and

                           (vi)     Payment and performance of all future
                  advances and other obligations that Grantor or any successor
                  in ownership of all or part of the Property may agree to pay
                  and/or perform (whether as principal, surety or guarantor) for
                  the benefit of Beneficiary, when a writing evidences the
                  parties' agreement that the advance or obligation be secured
                  by this Deed of Trust; and

                           (vii)    Payment and performance of all
                  modifications, amendments, extensions, and renewals, however
                  evidenced, of any of the Secured Obligations.

                  (b) All persons who may have or acquire an interest in all or
         any part of the Property will be considered to have notice of, and will
         be bound by, the terms of the Secured Obligations and each other
         agreement or instrument made or entered into in connection with each of
         the Secured Obligations. Such terms include any provisions in the Note
         or the Credit Agreement which permit borrowing, repayment and
         reborrowing, or which provide that the interest rate on one or more of
         the Secured Obligations may vary from time to time.

2. ASSIGNMENT OF RENTS.

         2.1      Assignment. Grantor hereby irrevocably, absolutely, presently
and unconditionally assigns to Beneficiary all rents, royalties, issues,
profits, revenue, income, accounts, proceeds and other benefits of the Property,
whether now due, past due or to become due, including all prepaid rents and
security deposits (some or all collectively, as the context may require,
"Rents"). This is an absolute assignment, not an assignment for security only.

         2.2      Grant of License. Beneficiary hereby confers upon Grantor a
license ("License") to collect and retain the Rents as they become due and
payable, so long as no Event of Default,

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as defined in Section 6.2 below, shall exist and be continuing. If an Event of
Default has occurred and is continuing, Beneficiary shall have the right, which
it may choose to exercise in its sole discretion, to terminate this License
without notice to or demand upon Grantor, and without regard to the adequacy of
Beneficiary's security under this Deed of Trust.

         2.3      Collection and Application of Rents. Subject to the License
granted to Grantor under Section 2.2 above, Beneficiary has the right, power and
authority to collect any and all Rents. Grantor hereby appoints Beneficiary its
attorney-in-fact to perform any and all of the following acts, if and at the
times when Beneficiary in its sole discretion may so choose:

                  (a)      Demand, receive and enforce payment of any and all
         Rents; or

                  (b)      Give receipts, releases and satisfactions for any and
         all Rents; or

                  (c)      Sue either in the name of Grantor or in the name of
         Beneficiary for any and all Rents.

Beneficiary and Grantor agree that the mere recordation of the assignment
granted herein entitles Beneficiary immediately to collect and receive rents
upon the occurrence of an Event of Default, as defined in Section 6.2, without
first taking any acts of enforcement under applicable law, such as, but not
limited to, providing notice to Grantor, filing foreclosure proceedings, or
seeking and/or obtaining the appointment of a receiver. Further, Beneficiary's
right to the Rents does not depend on whether or not Beneficiary takes
possession of the Property as permitted under Subsection 6.3(c). In
Beneficiary's sole discretion, Beneficiary may choose to collect Rents either
with or without taking possession of the Property. Beneficiary shall apply all
Rents collected by it in the manner provided under Section 6.6. If an Event of
Default occurs while Beneficiary is in possession of all or part of the Property
and is collecting and applying Rents as permitted under this Deed of Trust,
Beneficiary and any receiver shall nevertheless be entitled to exercise and
invoke every right and remedy afforded any of them under this Deed of Trust and
at law or in equity.

         2.4      Beneficiary Not Responsible. Under no circumstances shall
Beneficiary have any duty to produce Rents from the Property. Regardless of
whether or not Beneficiary, in person or by agent, takes actual possession of
the Premises and Improvements, unless Beneficiary agrees in writing to the
contrary, Beneficiary is not and shall not be deemed to be:

                  (a) A "Beneficiary in possession" for any purpose; or

                  (b) Responsible for performing any of the obligations of the
         lessor under any lease; or

                  (c) Responsible for any waste committed by lessees or any
         other parties, any dangerous or defective condition of the Property, or
         any negligence in the management, upkeep, repair or control of the
         Property unless caused by the gross negligence, willful misconduct or
         bad faith of Beneficiary; or

                  (d) Liable in any manner for the Property or the use,
         occupancy, enjoyment or operation of all or any part of it.

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         2.5      Leasing. Grantor shall not accept any deposit or prepayment of
rents under the leases for any rental period exceeding one (1) month without
Beneficiary's prior written consent. Grantor shall not lease the Property or any
part of it except strictly in accordance with the Credit Agreement.

3. GRANT OF SECURITY INTEREST.

         3.1      Security Agreement. The parties intend for this Deed of Trust
to create a lien on the Property, and an absolute assignment of the Rents, all
in favor of Beneficiary. The parties acknowledge that some of the Property and
some or all of the Rents may be determined under applicable law to be personal
property or fixtures. To the extent that any Property or Rents may be or be
determined to be personal property, Grantor as debtor hereby grants Beneficiary
as secured party a security interest in all such Property and Rents, to secure
payment and performance of the Secured Obligations. This Deed of Trust
constitutes a security agreement under the Uniform Commercial Code of the State
in which the Property is located, covering all such Property and Rents.

         3.2      Financing Statements. Grantor hereby authorizes Beneficiary to
file one or more financing statements. In addition, Grantor shall execute such
other documents as Beneficiary may from time to time require to perfect or
continue the perfection of Beneficiary's security interest in any Property or
Rents. As provided in Section 5.10 below, Grantor shall pay all fees and costs
that Beneficiary may incur in filing such documents in public offices and in
obtaining such record searches as Beneficiary may reasonably require. In case
Grantor fails to execute any financing statements or other documents for the
perfection or continuation of any security interest, Grantor hereby appoints
Beneficiary as its true and lawful attorney-in-fact to execute any such
documents on its behalf. If any financing statement or other document is filed
in the records normally pertaining to personal property, that filing shall never
be construed as in any way derogating from or impairing this Deed of Trust or
the rights or obligations of the parties under it.

4. FIXTURE FILING.

         This Deed of Trust constitutes a financing statement filed as a fixture
filing under Article 9 of the Uniform Commercial Code in the State in which the
Property is located, as amended or recodified from time to time, covering any
Property which now is or later may become fixtures attached to the Premises or
Improvements. For this purpose, the respective addresses of Grantor, as debtor,
and Beneficiary , as secured party, are as set forth in the preambles of this
Deed of Trust.

5. RIGHTS AND DUTIES OF THE PARTIES.

         5.1      Representations and Warranties. Grantor represents and
warrants to Trustee and Beneficiary that:

                  (a) Grantor lawfully possesses and holds fee simple title to
         all of the Premises and Improvements;

                  (b) Grantor has or will have good title to all Property other
         than the Premises and Improvements;

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                  (c) Grantor has the full and unlimited power, right and
         authority to encumber the Property and assign the Rents;

                  (d) This Deed of Trust creates a first and prior lien on the
         Property;

                  (e) The Property includes all property and rights which may be
         reasonably necessary or desirable to promote the present and any
         reasonable future beneficial use and enjoyment of the Premises and
         Improvements;

                  (f) Grantor owns any Property which is personal property free
         and clear of any security agreements, reservations of title or
         conditional sales contracts, and there is no financing statement
         affecting such personal property on file in any public office; and

                  (g) Grantor's place of business, or its chief executive office
         if it has more than one place of business, is located at the address
         specified below.

         5.2      Taxes, and Assessments. Grantor shall , prior to delinquency,
pay or cause to be paid each installment of all taxes and special assessments of
every kind, now or hereafter levied against the Property or any part thereof,
without notice or demand, and shall provide Beneficiary with evidence of the
payment of same. Grantor shall pay all taxes and assessments which may be levied
upon Beneficiary's or the Lenders' interest herein or upon this Deed of Trust or
the debt secured hereby (excluding any income taxes or similar charges imposed
upon Beneficiary or the Lenders), without regard to any law that may be enacted
imposing payment of the whole or any part thereof upon the Beneficiary or any
Lender. Notwithstanding anything contained in this Section to the contrary,
Grantor shall have the right to pay or cause to be paid any such tax or special
assessment under protest or to otherwise contest any such tax or special
assessment but only if (i) such contest has the effect of preventing the
collection of such tax or special assessment so contested and also prevent the
sale or forfeiture of the Property or any part thereof or any interest therein,
(ii) Grantor promptly notifies Beneficiary in writing of its intent to contest
such tax or special assessment, and (iii) if so requested in writing by
Beneficiary, Grantor has deposited security in form and amount reasonably
satisfactory to Beneficiary, and increases the amount of such security so
deposited promptly after Beneficiary's request therefor. Grantor shall prosecute
or cause the prosecution of all such contest actions in good faith and with due
diligence.

         5.3      Performance of Secured Obligations. Grantor shall promptly pay
and perform each Secured Obligation in accordance with its terms.

         5.4      Liens, Charges and Encumbrances. Grantor shall immediately
discharge any lien on the Property which Beneficiary has not consented to in
writing in accordance with the terms of Section 6.16 of the Credit Agreement.

         5.5      Damages, Restoration, and Insurance Proceeds. As long as no
Event of Default has occurred and is then continuing, all insurance proceeds for
losses at the Property of less than $500,000.00 shall be adjusted with and
payable to the Grantor. In case of loss, Beneficiary shall have the right (but
not the obligation) to participate in and reasonably approve the settlement of
any insurance claim in excess of $500,000.00 and all claims thereafter, and
Beneficiary is at all times authorized to collect and receive any insurance
money for those claims which Beneficiary is entitled to approve the settlement
of hereunder however, notwithstanding the forgoing, if the

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Property is damaged and the Borrower elects to release the Property from the
Collateral Pool in accordance with the terms of Section 2.7(c) of the Credit
Agreement, upon such release, all insurance proceeds for such damage to the
Property shall be payable to the Grantor.

         At the election of Beneficiary, such insurance proceeds may be applied
to reduce the outstanding balance of the indebtedness under the Credit Agreement
or to pay for costs of repair and restoration of the Property; provided,
however, that so long as no Event of Default has occurred and is then
continuing, Beneficiary shall make such insurance proceeds available to pay for
such costs of repair and restoration. If Beneficiary is entitled to and does
elect to apply insurance proceeds in payment or reduction of the indebtedness
secured hereby, then Beneficiary shall reduce the then outstanding balance of
the Advances by the amount of the insurance proceeds received and so applied by
Beneficiary. In the event that Beneficiary does not elect to apply the insurance
proceeds to the indebtedness secured hereby as set forth above, such insurance
proceeds shall be used to reimburse Grantor for the cost of rebuilding or
restoring the Premises. The Premises shall be so restored or rebuilt as to be
substantially the same quality and character as the Premises were prior to such
damage or destruction in accordance with the original plans and specifications
or to such other condition as Beneficiary shall reasonably approve in writing.

         If Beneficiary elects to make the proceeds available for repair and
restoration, any request by Grantor for a disbursement by Beneficiary of fire or
casualty insurance proceeds and funds deposited by Grantor with Beneficiary
pursuant to this Section 5.5 shall be treated by Beneficiary as if such request
were for an Advance under the Credit Agreement, and the disbursement thereof
shall be conditioned upon the Borrower's compliance with and satisfaction of the
same conditions precedent as would be applicable under the Credit Agreement for
such an Advance, and during any such period that funds are available to the
Borrower for application to restore the Property, the amount of the Borrowing
Base attributable to the Property shall be determined in accordance with the
terms of the Credit Agreement. Additionally, such disbursement shall also be
conditioned upon Borrower's providing to Administrative Agent: updated title
insurance, satisfactory evidence, as reasonably determined by Administrative
Agent, that the Premises shall be so restored or rebuilt as to be of at least
equal value and quality and substantially the same character as the Premises
were prior to such damage or destruction in accordance with the original plans
and specifications or to such other condition as Administrative Agent shall
reasonably approve in writing, satisfactory evidence of the estimated cost of
completion thereof and with such architect's certificates, waivers of lien,
contractors' sworn statements and other evidence of cost and of payments as
Administrative Agent may reasonably require and approve. The undisbursed balance
of insurance proceeds shall at all times be sufficient to pay for the cost of
completion of the work free and clear of liens and if such proceeds are
insufficient, Grantor shall deposit the amount of such deficiency with
Beneficiary prior to the disbursement by Beneficiary of (i) any insurance
proceeds or (ii) any additional Advances under the Credit Agreement for such
purpose.

         5.6      Condemnation Proceeds. Grantor hereby assigns, transfers and
sets over unto Beneficiary its entire interest in the proceeds (the
"Condemnation Proceeds") of any award or any claim for damages for any of the
Property taken or damaged under the power of eminent domain or by condemnation
or any transaction in lieu of condemnation ("Condemnation"), unless,
notwithstanding the forgoing, (i) such taking, damage or condemnation does not
cause a material diminution in the value of the Premises or (ii) Grantor elects
to release the Property in

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accordance with the terms of Section 2.7(c) of the Credit Agreement, in which
case, upon such release, all Condemnation Proceeds for damages to the Property
shall be payable to the Grantor. Beneficiary shall make available to Grantor the
Condemnation Proceeds for the restoration of the Premises if Grantor satisfies
all of the conditions set forth in this Section 5.6 hereof for disbursement of
insurance proceeds. In all other cases Beneficiary shall have the right, at its
option, to apply the Condemnation Proceeds upon or in reduction of the
indebtedness secured hereby, whether due or not. If Beneficiary is entitled to
and does elect to apply Condemnation Proceeds upon or in reduction of the
indebtedness secured hereby, then Beneficiary shall reduce the then outstanding
balance of the Advances under the Credit Agreement by the amount of the
Condemnation Proceeds received and so applied by Beneficiary and the Borrowing
Base reduced. If the Condemnation Proceeds are required to be used as aforesaid
to reimburse Grantor for the cost of rebuilding or restoring buildings or
improvements on the Property, or if Beneficiary elects that the Condemnation
Proceeds be so used, and the buildings and other improvements shall be rebuilt
or restored, the Condemnation Proceeds shall be paid out in the same manner as
is provided in this Section 5.6 hereof for the payment of insurance proceeds
toward the cost of rebuilding or restoration of such buildings and other
improvements. Any surplus which may remain out of the Condemnation Proceeds
after payment of such cost of rebuilding or restoration shall, at the option of
Beneficiary, be applied on account of the indebtedness secured hereby or be paid
to any other party entitled thereto.

         5.7      Maintenance and Preservation of Property.

                  (a) Grantor shall insure the Property as required by Schedule
         11 of the Credit Agreement and keep the Property in good condition and
         repair.

                  (b) Except as required by the terms of any lease approved by
         Administrative Agent, Grantor shall not remove or demolish the Property
         or any material part of it in any way, or materially alter, restore or
         add to the Property, or initiate or allow any material change or
         variance in any zoning or other Premises use classification which
         adversely affects the Property or any material part of it, except with
         Beneficiary's express prior written consent in each instance; the term
         "materially" or "material" as used in this Section 5.7(b) shall mean
         having a monetary effect in an amount greater than (i) $500,000 with
         respect to any Community Center and (ii) $1,000,000 with respect to any
         Regional Mall.

                  (c) Grantor shall not commit or allow any act upon or use of
         the Property which would violate: (i) any applicable Laws or order of
         any Governmental Authority, whether now existing or later to be enacted
         and whether foreseen or unforeseen; or (ii) any public or private
         covenant, condition, restriction or equitable servitude affecting the
         Property. Grantor shall not bring or keep any article on the Property
         or cause or allow any condition to exist on it, if that could
         invalidate or would be prohibited by any insurance coverage required to
         be maintained by Grantor on the Property or any part of it under the
         Credit Agreement.

                  (d) Grantor shall not commit or allow waste of the Property,
         including those acts or omissions characterized under the Credit
         Agreement as waste which arises out of Materials of Environmental
         Concern.

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                  (e) Grantor shall perform all other acts which from the
         character or use of the Property may be reasonably necessary to
         maintain and preserve its value.

         5.8      Releases, Extensions, Modifications and Additional Security.
From time to time, Beneficiary may perform any of the following acts without
incurring any liability or giving notice to any person:

                  (a) Release any person liable for payment of any Secured
         Obligation;

                  (b) Extend the time for payment, or otherwise alter the terms
         of payment, of any Secured Obligation;

                  (c) Accept additional real or personal property of any kind as
         security for any Secured Obligation, whether evidenced by deeds of
         trust, mortgages, security agreements or any other instruments of
         security;

                  (d) Alter, substitute or release any property securing the
         Secured Obligations;

                  (e) Consent to the making of any plat or map of the Property
         or any part of it;

                  (f) Join in granting any easement or creating any restriction
         affecting the Property; or

                  (g) Join in any subordination or other agreement affecting
         this Deed of Trust or the lien of it; or

                  (h) Release the Property or any part of it.

         5.9      Release. If (a) Borrower shall fully pay all principal and
interest on the Notes, and all other indebtedness secured hereby, and Grantor
and Borrower comply with all of the other terms and provisions hereof to be
performed and complied with by Grantor and Borrower, and terminate the
obligations of the Lenders to make additional advances under the Credit
Agreement; or (b) Grantor shall comply with the terms and conditions as set
forth in Section 2.7(c) of Credit Agreement for release of this Deed of Trust,
Beneficiary shall within thirty (30) days release this Deed of Trust and the
lien thereof by proper instrument upon payment and discharge of the amounts
required under the Credit Agreement and payment of any filing fee in connection
with such release. Grantor shall pay any costs of recordation of such release.

         5.10     Compensation, Exculpation, Indemnification.

                  (a) Grantor agrees to pay fees required by and pursuant to the
         Credit Agreement, for any services that Beneficiary or Trustee may
         render in connection with this Deed of Trust, including providing a
         statement of the Secured Obligations . Grantor shall also pay or
         reimburse all of Beneficiary's and Trustee's costs and expenses which
         may be incurred in rendering any such services. Grantor further agrees
         to pay or reimburse Beneficiary for all costs, expenses and other
         advances which may be incurred or made by Beneficiary or Trustee in any
         efforts to enforce any terms of this Deed of Trust, including any
         rights or remedies afforded to Beneficiary and Trustee under Section
         6.4, whether any lawsuit is filed or not, or in defending any action or
         proceeding arising under or relating to this Deed of Trust, including
         attorneys' fees and other legal costs, costs of any

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         Foreclosure Sale (as defined in Subsection 6.4(i) below) and any cost
         of evidence of title. If Beneficiary and/or Trustee, as required by
         applicable law, chooses to dispose of Property through more than one
         Foreclosure Sale, Grantor shall pay all costs, expenses or other
         advances that may be incurred or made by Beneficiary and/or Trustee in
         each of such Foreclosure Sales. . In any suit to foreclose the lien
         hereof or enforce any other remedy of Trustee or Beneficiary under this
         Deed of Trust or the Note, there shall be allowed and included as
         additional indebtedness in the decree for sale or other judgment or
         decree all expenditures and expenses which may be paid or incurred by
         or on behalf of Trustee and Beneficiary for reasonable attorneys' costs
         and fees (including the costs and fees of paralegals), survey charges,
         appraiser's fees, inspecting engineer's and/or architect's fees, fees
         for environmental studies and assessments and all additional expenses
         incurred by Trustee and Beneficiary with respect to environmental
         matters, outlays for documentary and expert evidence, stenographers'
         charges, publication costs, and costs (which may be estimated as to
         items to be expended after entry of the decree) of procuring all such
         abstracts of title, title searches and examinations, title insurance
         policies, and similar data and assurances with respect to title as
         Trustee and Beneficiary may deem reasonably necessary either to
         prosecute such suit or to evidence to bidders at any sale which may be
         had pursuant to such decree the true condition of the title to, the
         value of or the environmental condition of the Property. All
         expenditures and expenses of the nature in this Subsection mentioned,
         and such expenses and fees as may be incurred in the protection of the
         Property and maintenance of the lien of this Deed of Trust, including
         the fees of any attorney (including the costs and fees of paralegals)
         employed by Trustee or Beneficiary in any litigation or proceeding
         affecting this Deed of Trust, the Note or the Property, including
         probate and bankruptcy proceedings, or in preparation for the
         commencement or defense of any proceeding or threatened suit or
         proceeding, shall be immediately due and payable by Grantor, with
         interest thereon at the Default Rate and shall be secured by this Deed
         of Trust.

                  (b) Neither Beneficiary nor Trustee shall be directly or
         indirectly liable to Grantor or any other person as a consequence of
         any of the following:

                           (i)      Beneficiary's or Trustee's exercise of or
                  failure to exercise any rights, remedies or powers granted to
                  Beneficiary and/or Trustee in this Deed of Trust;

                           (ii)     Beneficiary's failure or refusal to perform
                  or discharge any obligation or liability of Grantor under any
                  agreement related to the Property or under this Deed of Trust;
                  or

                           (iii)    Any loss sustained by Grantor or any third
                  party resulting from Beneficiary's failure to lease the
                  Property, or from any other act or omission of Beneficiary in
                  managing the Property, after an Event of Default, unless the
                  loss is caused by the willful misconduct, gross negligence or
                  bad faith of Beneficiary.

         Grantor hereby expressly waives and releases all liability of the types
         described above, and agrees that no such liability shall be asserted
         against or imposed upon Beneficiary or Trustee.

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                  (c) Grantor agrees to indemnify Beneficiary and Trustee
         against and hold them harmless from all losses, damages, liabilities,
         claims, causes of action, judgments, court costs, attorneys' fees and
         other legal expenses, cost of evidence of title, cost of evidence of
         value, and other costs and expenses which they may suffer or incur,
         unless caused by the gross negligence, willful misconduct or bad faith
         of the Beneficiary:

                           (i)      In performing any act required or permitted
                  by this Deed of Trust or any of the other Loan Documents or by
                  law;

                           (ii)     Because of any failure of Grantor to perform
                  any of its obligations; or

                           (iii)    Because of any alleged obligation of or
                  undertaking by Beneficiary and/or Trustee to perform or
                  discharge any of the representations, warranties, conditions,
                  covenants or other obligations in any document relating to the
                  Property other than the Loan Documents.

         This agreement by Grantor to indemnify Beneficiary and Trustee shall
         survive the release and cancellation of any or all of the Secured
         Obligations and the full or partial release of this Deed of Trust.

                  (d) Grantor shall pay all obligations to pay money arising
         under this Section 5.9 immediately upon demand by Beneficiary. Each
         such obligation shall be added to, and considered to be part of, the
         principal of the Note, and shall bear interest from the date the
         obligation arises at the Default Rate.

         5.11     Defense and Notice of Claims and Actions. At Grantor's sole
expense, Grantor shall protect, preserve and defend the Property and title to
and right of possession of the Property, and the security of this Deed of Trust
and the rights and powers of Beneficiary created under it, against all adverse
claims. Grantor shall give Beneficiary prompt notice in writing if any claim is
asserted which does or could affect any such matters, or if any action or
proceeding is commenced which alleges or relates to any such claim.

         5.12     Subrogation. Beneficiary shall be subrogated to the liens of
all encumbrances, whether released of record or not, which are discharged in
whole or in part by Beneficiary in accordance with this Deed of Trust or with
the proceeds of any loan secured by this Deed of Trust.

         5.13     Site Visits, Observation and Testing. Beneficiary and its
agents and representatives shall have the right at any reasonable time to enter
and visit the Property for the purpose of performing appraisals, observing the
Property, and conducting non-invasive tests (unless Beneficiary has a good faith
reason to believe that the taking and removing soil or groundwater samples is
required, and in such case, conducting such tests) on any part of the Property.
Beneficiary has no duty, however, to visit or observe the Property or to conduct
tests, and no site visit, observation or testing by Beneficiary, its agents or
representatives shall impose any liability on any of Beneficiary, its agents or
representatives. In no event shall any site visit, observation or testing by
Beneficiary, its agents or representatives be a representation that Materials of
Environmental Concern are or are not present in, on or under the Property, or
that there has been or shall be compliance with any law, regulation or ordinance
pertaining to

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                                      -12-

<PAGE>

Materials of Environmental Concern or any other applicable governmental law.
Neither Grantor nor any other party is entitled to rely on any site visit,
observation or testing by any of Beneficiary, its agents or representatives.
Neither Beneficiary, its agents or representatives owe any duty of care to
protect Grantor or any other party against, or to inform Grantor or any other
party of, any Materials of Environmental Concern or any other adverse condition
affecting the Property. Beneficiary shall give Grantor reasonable notice before
entering the Property. Beneficiary shall make reasonable efforts to avoid
interfering with Grantor's use of the Property in exercising any rights provided
in this Section 5.13. Notwithstanding the foregoing, all rights granted to
Beneficiary under this Section 5.13 are subject to all rights of tenants to the
Property.

         5.14     Notice of Change. Grantor shall give Beneficiary prior written
notice of any change in: (a) the location of its place of business or its chief
executive office if it has more than one place of business; (b) the location of
any of the Property, including the Books and Records; and (c) Grantor's name or
business structure. Unless otherwise approved by Beneficiary in writing, all
Property that consists of personal property (other than the Books and Records)
will be located on the Premises and all Books and Records will be located at
Grantor's place of business or chief executive office if Grantor has more than
one place of business.

6. TRANSFERS, DEFAULT AND REMEDIES.

         6.1      Transfers. Grantor acknowledges that Beneficiary is making one
or more advances under the Credit Agreement in reliance on the expertise, skill
and experience of Grantor; thus, the Secured Obligations include material
elements similar in nature to a personal service contract. In consideration of
Beneficiary's reliance, Grantor agrees that Grantor shall not make any transfer
of the Property or its interests therein, except for leases in the ordinary
course (a "Transfer"), unless the Transfer is preceded by Beneficiary's express
written consent to the particular transaction and transferee. Beneficiary may
withhold such consent in its sole discretion.

         6.2      Events of Default. Grantor will be in default under this Deed
of Trust upon the occurrence of any one or more of the following events (some or
all collectively, "Events of Default;" any one singly, an "Event of Default").

                  (a) If a default shall occur with respect to covenants,
         agreements and obligations of Grantor under this Deed of Trust
         involving the payment of money (other than a default in the payment of
         principal when due as provided in Section 7.1 of the Credit Agreement)
         and shall continue for a period of five (5) business days after the due
         date thereof; or

                  (b) If there is a failure to perform or observe any of the
         other covenants, agreements and conditions contained in this Deed of
         Trust in accordance with the terms hereof, and such default continues
         unremedied for a period of thirty (30) days after written notice from
         Beneficiary to defaulting Grantor of the occurrence thereof; or

                  (c) An "Event of Default" occurs under the Credit Agreement or
         any other Loan Document.

         6.3      Remedies. At any time after an Event of Default, Beneficiary
shall be entitled to invoke any and all of the rights and remedies described
below, in addition to all other rights and remedies available to Beneficiary at
law or in equity. All of such rights and remedies shall be

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                                      -13-

<PAGE>

cumulative, and the exercise of any one or more of them shall not constitute an
election of remedies.

                  (a) Acceleration. Upon the occurrence and continuation of any
         Event of Default above under subsections 6.2 (a) or 6.2 (b) above, the
         Property shall no longer be eligible to be included in the calculation
         of the Borrowing Base unless the Required Lenders consent to its
         continued inclusion. Upon the occurrence of an Event of Default under
         subsection 6.2 (c) above, or if upon removal of the Property from the
         Borrowing Base, the Borrower does not reduce the outstanding balance of
         the Loans to be less than or equal to the recomputed Borrowing Base
         within the time period allowed under Section 2.7(b) of the Credit
         Agreement, then the whole of said principal sum hereby secured shall,
         at once either automatically or at the option of Beneficiary as
         described in Section 8.1 of the Credit Agreement, become immediately
         due and payable, together with accrued interest thereon, without any
         presentment, demand, protest or notice of any kind to Grantor.

                  (b) Receiver. Beneficiary shall, as a matter of right, without
         notice and without giving bond to Grantor or anyone claiming by, under
         or through Grantor, and without regard for the solvency or insolvency
         of Grantor or the then value of the Property, to the extent permitted
         by applicable law, be entitled to have a receiver appointed for all or
         any part of the Property and the Rents, and the proceeds, issues and
         profits thereof, with the rights and powers referenced below and such
         other rights and powers as the court making such appointment shall
         confer, and Grantor hereby consents to the appointment of such receiver
         and shall not oppose any such appointment. Such receiver shall have all
         powers and duties prescribed by applicable law, all other powers which
         are necessary or usual in such cases for the protection, possession,
         control, management and operation of the Property, and such rights and
         powers as Beneficiary would have, upon entering and taking possession
         of the Property under subsection (c) below.

                  (c) Entry. Beneficiary, in person, by agent or by
         court-appointed receiver, may enter, take possession of, manage and
         operate all or any part of the Property, and may also do any and all
         other things in connection with those actions that Beneficiary may in
         its sole discretion consider necessary and appropriate to protect the
         security of this Deed of Trust. Such other things may include: taking
         and possessing all of Grantor's or the then owner's Books and Records;
         entering into, enforcing, modifying or canceling leases on such terms
         and conditions as Beneficiary may consider proper; obtaining and
         evicting tenants; fixing or modifying Rents; collecting and receiving
         any payment of money owing to Beneficiary; completing any unfinished
         construction; and/or contracting for and making repairs and
         alterations. If Beneficiary so requests, Grantor shall assemble all of
         the Property that has been removed from the Premises and make all of it
         available to Beneficiary at the site of the Premises. Grantor hereby
         irrevocably constitutes and appoints Beneficiary as Grantor's
         attorney-in-fact to perform such acts and execute such documents as
         Beneficiary in its sole discretion may consider to be appropriate in
         connection with taking these measures, including endorsement of
         Grantor's name on any instruments.

                  (d) Cure; Protection of Security. Beneficiary may cure any
         breach or default of Grantor, and if it chooses to do so in connection
         with any such cure, Beneficiary may also enter the Property and/or do
         any and all other things which it may in its sole discretion

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                                      -14-

<PAGE>

         consider necessary and appropriate to protect the security of this Deed
         of Trust, including, without limitation, completing construction of the
         improvements at the Property contemplated by the Credit Agreement. Such
         other things may include: appearing in and/or defending any action or
         proceeding which purports to affect the security of, or the rights or
         powers of Beneficiary under, this Deed of Trust; paying, purchasing,
         contesting or compromising any encumbrance, charge, lien or claim of
         lien which in Beneficiary's sole judgment is or may be senior in
         priority to this Deed of Trust, such judgment of Beneficiary or to be
         conclusive as among the parties to this Deed of Trust; obtaining
         insurance and/or paying any premiums or charges for insurance required
         to be carried under the Credit Agreement; otherwise caring for and
         protecting any and all of the Property; and/or employing counsel,
         accountants, contractors and other appropriate persons to assist
         Beneficiary. Beneficiary may take any of the actions permitted under
         this Subsection 6.3(d) either with or without giving notice to any
         person. Any amounts expended by Beneficiary under this Subsection
         6.3(d) shall be secured by this Deed of Trust.

                  (e) Uniform Commercial Code Remedies. Beneficiary may exercise
         any or all of the remedies granted to a secured party under the Uniform
         Commercial Code in the State in which the Property is located.

                  (f) Foreclosure. Beneficiary shall have the right, upon
         written request to Trustee, to require Trustee to foreclosethe lien
         hereof upon the Property or any part thereof, for the Secured
         Obligations, or any part thereof, by trustee's sale in accordance with
         applicable law. Trustee shall conduct any such sale by public auction
         at the 4th (University) Avenue front door of the courthouse of Cabell
         County, West Virginia, in the City of Huntington, for cash in hand on
         the day of sale, or upon such other terms as Beneficiary may designate
         and direct to Trustee, after first giving notice of such sale by
         publishing such notice in a newspaper of general circulation published
         in the county wherein the Property is located, or if there be no such
         newspaper, in a qualified newspaper of general circulation in said
         county, once a week for two (2) successive weeks preceding the day of
         sale and after giving notice to Grantor, Borrower and to any
         subordinate lienholder who has previously notified Beneficiary of the
         existence of a subordinate lien at least twenty (20) days prior to the
         sale, and no other notice of such sale shall be required. Grantor,
         Borrower and Beneficiary agree that any sale hereunder may be adjourned
         by Trustee from time to time, without notice other than oral
         proclamation of such adjournment at the time and place of sale, or at
         the time and place of any adjourned sale. Beneficiary or its nominee
         may bid and become the purchaser of all or any part of the Property at
         any foreclosure or other sale hereunder, and the amount of
         Beneficiary's successful bid shall be credited on the Secured
         Obligations in accordance with Section 6.4 below.

                  (g) Lawsuits. Beneficiary may proceed by a suit or suits in
         law or equity, whether for specific performance of any covenant or
         agreement herein contained or in aid of the execution of any power
         herein granted, or for any foreclosure under the judgment or decree of
         any court of competent jurisdiction. In addition to the right provided
         in Section 6.3(b), upon, or at any time after the initiation by Trustee
         of proceedings to foreclose this Deed of Trust, Trustee shall be
         entitled to the appointment of a receiver of the Property by the court
         in which such complaint is filed, and Grantor hereby consents to such
         appointment.

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<PAGE>

                  (h) Other Remedies. Beneficiary may exercise all rights and
         remedies contained in any other instrument, document, agreement or
         other writing heretofore, concurrently or in the future executed by
         Grantor or any other person or entity in favor of Beneficiary in
         connection with the Secured Obligations or any part thereof, without
         prejudice to the right of Beneficiary thereafter to enforce any
         appropriate remedy against Grantor. Beneficiary shall have the right to
         pursue all remedies afforded to a Beneficiary under applicable law, and
         shall have the benefit of all of the provisions of such applicable law,
         including all amendments thereto which may become effective from time
         to time after the date hereof.

                  (i) Sale of Personal Property. Beneficiary or Trustee shall
         have the discretionary right to cause some or all of the Property,
         which constitutes personal property, to be sold or otherwise disposed
         of in any combination and in any manner permitted by applicable law.

                           (i)      For purposes of this power of sale,
                  Beneficiary or Trustee may elect to treat as personal property
                  any Property which is intangible or which can be severed from
                  the Premises or Improvements without causing structural
                  damage. If it chooses to do so, Beneficiary or Trustee may
                  dispose of any personal property, in any manner permitted by
                  Article 9 of the Uniform Commercial Code of the State in which
                  the Property is located, including any public or private sale,
                  or in any manner permitted by any other applicable law.

                           (ii)     In connection with any sale or other
                  disposition of such Property, Grantor agrees that the
                  following procedures constitute a commercially reasonable
                  sale: Beneficiary or Trustee shall mail written notice of the
                  sale to Grantor not later than thirty (30) days prior to such
                  sale. Beneficiary or Trustee will publish notice of the sale
                  in a local daily newspaper of general circulation. Upon
                  receipt of any written request, Beneficiary or Trustee will
                  make the Property available to any bona fide prospective
                  purchaser for inspection during reasonable business hours.
                  Notwithstanding, neither Beneficiary nor Trustee shall be
                  under any obligation to consummate a sale if, in the judgment
                  of Beneficiary or Trustee, none of the offers received by them
                  equals the fair value of the Property offered for sale. The
                  foregoing procedures do not constitute the only procedures
                  that may be commercially reasonable.

                  (j) Single or Multiple Foreclosure Sales. If the Property
         consists of more than one lot, parcel or item of property, Trustee may:

                           (i)      Designate the order in which the lots,
                  parcels and/or items shall be sold or disposed of or offered
                  for sale or disposition; and

                           (ii)     Elect to dispose of the lots, parcels and/or
                  items through a single consolidated sale or disposition to be
                  held or made under or in connection with judicial proceedings,
                  or by virtue of a judgment and decree of foreclosure and sale;
                  or through two or more such sales or dispositions; or in any
                  other manner Trustee may deem to be in the best interests of
                  all parties (any such sale or disposition, a "Foreclosure
                  Sale;" and any two or more, "Foreclosure Sales").

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                  (k) If Trustee chooses to have more than one Foreclosure Sale,
         Trustee at its option may cause the Foreclosure Sales to be held
         simultaneously or successively, on the same day, or on such different
         days and at such different times and in such order as Trustee may deem
         to be in the best interests of all parties. No Foreclosure Sale shall
         terminate or affect the liens of this Deed of Trust on any part of the
         Property which has not been sold, until all of the Secured Obligations
         have been paid in full.

         6.4      Credit Bids. At any Foreclosure Sale, any person, including
Grantor or Beneficiary, may bid for and acquire the Property or any part of it
to the extent permitted by then applicable law. If Beneficiary is the successful
bidder at any Foreclosure Sale, instead of paying cash for such property,
Trustee may permit Beneficiary to settle the purchase price by crediting the
sales price of the property against the following obligations:

                  (a) First, the portion of the Secured Obligations attributable
         to the expenses of sale, costs of any action and any other sums for
         which Grantor is obligated to pay or reimburse Beneficiary and Trustee
         under Section 5.10 of this Deed of Trust; and

                  (b) Second, all other Secured Obligations in any order and
         proportions as Beneficiary in its sole discretion may choose.

         6.5      Application of Foreclosure Sale Proceeds. Trustee shall apply
the proceeds of any Foreclosure Sale in the following manner:

                  (a) First, to pay the portion of the Secured Obligations
         attributable to the expenses of sale, costs of any action and any other
         sums for which Grantor is obligated to reimburse Beneficiary or Trustee
         under Section 5.10 of this Deed of Trust;

                  (b) Second, to pay the portion of the Secured Obligations
         attributable to any sums expended or advanced by Beneficiary under the
         terms of this Deed of Trust which then remain unpaid;

                  (c) Third, to pay all other Secured Obligations in any order
         and proportions as Beneficiary in its sole discretion may choose; and

                  (d) Fourth, to remit the remainder, if any, to the person or
         persons entitled to it.

         6.6      Application of Rents and Other Sums. Beneficiary shall apply
any and all Rents collected by it, and any and all sums other than proceeds of a
Foreclosure Sale which Beneficiary may receive or collect under Section 6.3
above, in the following manner:

                  (a) First, to pay the portion of the Secured Obligations
         attributable to the costs and expenses of operation and collection that
         may be incurred by Beneficiary or any receiver;

                  (b) Second, to pay all other Secured Obligations in any order
         and proportions as Beneficiary in its sole discretion may choose; and

                  (c) Third, to remit the remainder, if any, to the person or
         persons entitled to it.

Beneficiary shall have no liability for any funds which it does not actually
receive.

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7. THE TRUSTEE.

         7.1      Certain Rights. With the approval of Beneficiary, Trustee
shall have the right to take any and all of the following actions: (i) to
select, employ and consult with counsel (who may be, but need not be, counsel
for Beneficiary) upon any matters arising hereunder, including the preparation,
execution and interpretation of the Loan Documents, and shall be fully protected
in relying as to legal matters on the advice of counsel, (ii) to execute any of
the trusts and powers hereof and to perform any duty hereunder either directly
or through his or her agents or attorneys, (iii) to select and employ, in and
about the execution of his or her duties hereunder, suitable accountants,
engineers and other experts, agents and attorneys-in-fact, either corporate or
individual, not regularly in the employ of Trustee (and Trustee shall not be
answerable for any act, default, negligence, or misconduct of any such
accountant, engineer or other expert, agent or attorney-in-fact, if selected
with reasonable care, or for any error of judgment or act done by Trustee in
good faith, or be otherwise responsible or accountable under any circumstances
whatsoever, except for Trustee's gross negligence or bad faith), and (iv) any
and all other lawful action that Beneficiary may instruct Trustee to take to
protect or enforce Beneficiary's rights hereunder. Trustee shall not be
personally liable in case of entry by Trustee, or anyone entering by virtue of
the powers herein granted to Trustee, upon the Premises for debts contracted for
or liability or damages incurred in the management or operation of the Premises.
Trustee shall have the right to rely on any instrument, document, or signature
authorizing or supporting any action taken or proposed to be taken by Trustee
hereunder, believed by Trustee in good faith to be genuine. Trustee shall be
entitled to reimbursement for expenses incurred by Trustee in the performance of
Trustee's duties hereunder and to reasonable compensation for such of Trustee's
services hereunder as shall be rendered. Grantor will, from time to time, pay
the compensation due to Trustee hereunder and reimburse Trustee for, and save
and hold Trustee harmless against, any and all liability and expenses which may
be incurred by Trustee in the performance of Trustee's duties.

         7.2      Retention of Money. All moneys received by Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, and shall be segregated from any other moneys of
Trustee.

         7.3      Successor Trustees. Trustee may resign by the giving of notice
of such resignation in writing to Beneficiary. If Trustee shall die, resign or
become disqualified from acting in the execution of this trust, or if, for any
reason, Beneficiary, in Beneficiary's sole discretion and with or without cause,
shall prefer to appoint a substitute trustee or multiple substitute trustees, or
successive substitute trustees or successive multiple substitute trustees, to
act instead of the aforenamed Trustee, Beneficiary shall have full power, by an
appointment document duly executed, acknowledged, and recorded in all offices
where this Deed of Trust is recorded, to appoint a substitute trustee (or, if
preferred, multiple substitute trustees) in succession who shall succeed (and if
multiple substitute trustees are appointed, each of such multiple substitute
trustees shall succeed) to all the estates, rights, powers and duties of the
aforenamed Trustee. Such appointment may be executed by any authorized agent of
Beneficiary, and if such Beneficiary be a corporation and such appointment be
executed on its behalf by any officer of such corporation, such appointment
shall be conclusively presumed to be executed with authority and shall be valid
and sufficient without proof of any action by the board of directors or any
superior officer of the corporation. Grantor hereby ratifies and confirms any
and all acts which the aforenamed Trustee, or his or her successor or successors
in this trust, shall do lawfully by virtue hereof. If multiple substitute
trustees are appointed, each of such

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                                      -18-

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multiple substitute trustees shall be empowered and authorized to act alone
without the necessity of the joinder of the other multiple substitute trustees,
whenever any action or undertaking of such substitute trustees is requested or
required under or pursuant to this Deed of Trust or applicable law. Any prior
election to act jointly or severally shall not prevent either or both of such
multiple substitute Trustees from subsequently executing, jointly or severally,
any or all of the provisions hereof.

         7.4      Perfection of Appointment. Should any deed, conveyance, or
instrument of any nature be required from Grantor by any Trustee or substitute
Trustee to more fully and certainly vest in and confirm to Trustee or substitute
Trustee such estates, rights, powers, and duties, then, upon request by
Beneficiary, Trustee or substitute trustee, any and all such deeds, conveyances
and instruments shall be made, executed, acknowledged, and delivered and shall
be caused to be recorded and/or filed by Grantor.

         7.5      Succession Instruments. Any substitute trustee appointed
pursuant to any of the provisions hereof shall, without any further act, deed or
conveyance, become vested with all the estates, properties, rights, powers, and
trusts of its, his or her predecessor in the rights hereunder with like effect
as if originally named as Trustee herein; but nevertheless, upon the written
request of Beneficiary or of the substitute trustee, the Trustee ceasing to act
shall execute and deliver any instrument transferring to such substitute
trustee, upon the trusts herein expressed, all the estates, properties, rights,
powers, and trusts of the Trustee so ceasing to act, and shall duly assign,
transfer and deliver any of the property and moneys held by such Trustee to the
substitute trustee so appointed in such Trustee's place.

         7.6      No Representation by Trustee or Beneficiary. By accepting or
approving anything required to be observed, performed, or fulfilled or to be
given to Trustee or Beneficiary pursuant to the Loan Documents, neither Trustee
nor Beneficiary shall be deemed to have warranted, consented to, or affirmed the
sufficiency, legality, effectiveness or legal effect of the same, or of any
term, provision, or condition thereof, and such acceptance or approval thereof
shall not be or constitute any warranty or affirmation with respect thereto by
Trustee or Beneficiary.

8. MISCELLANEOUS PROVISIONS.

         8.1      Additional Provisions. The Loan Documents fully state all of
the terms and conditions of the parties' agreement regarding the matters
mentioned in or incidental to this Deed of Trust. The Loan Documents also grant
further rights to Beneficiary and contain further agreements and affirmative and
negative covenants by Grantor which apply to this Deed of Trust and to the
Property.

         8.2      No Waiver or Cure.

                  (a) Each waiver by Beneficiary must be in writing, and no
         waiver shall be construed as a continuing waiver. No waiver shall be
         implied from any delay or failure by Beneficiary to take action on
         account of any default of Grantor. Consent by Beneficiary to any act or
         omission by Grantor shall not be construed as a consent to any other or
         subsequent act or omission or to waive the requirement for
         Beneficiary's consent to be obtained in any future or other instance.

Huntington, West Virginia

                                      -19-

<PAGE>

                  (b) If any of the events described below occurs, that event
         alone shall not: cure or waive any breach, Event of Default or notice
         of default under this Deed of Trust or invalidate any act performed
         pursuant to any such default or notice; or nullify the effect of any
         notice of default or sale (unless all Secured Obligations then due have
         been paid and performed and all other defaults under the Loan Documents
         have been cured); or impair the security of this Deed of Trust; or
         prejudice Beneficiary or any receiver in the exercise of any right or
         remedy afforded any of them under this Deed of Trust; or be construed
         as an affirmation by Beneficiary of any tenancy, lease or option, or a
         subordination of the lien of this Deed of Trust.

                           (i)      Trustee or Beneficiary, its agent or a
                  receiver takes possession of all or any part of the Property
                  in the manner provided in Subsection 6.3(c).

                           (ii)     Beneficiary collects and applies Rents as
                  permitted under Sections 2.3 and 6.6 above, either with or
                  without taking possession of all or any part of the Property.

                           (iii)    Beneficiary or Trustee receives and applies
                  to any Secured Obligation any proceeds of any Property,
                  including any proceeds of insurance policies, condemnation
                  awards, or other claims, property or rights assigned to
                  Beneficiary under Section 5.5 and Section 5.6 above.

                           (iv)     Beneficiary makes a site visit, observes the
                  Property and/or conducts tests as permitted under Section 5.13
                  above.

                           (v)      Beneficiary or Trustee receives any sums
                  under this Deed of Trust or any proceeds of any collateral
                  held for any of the Secured Obligations, and applies them to
                  one or more Secured Obligations.

                           (vi)     Beneficiary, Trustee or any receiver invokes
                  any right or remedy provided under this Deed of Trust.

         8.3      Powers of Beneficiary.

                  (a) If Beneficiary performs any act which it is empowered or
         authorized to perform under this Deed of Trust, including any act
         permitted by Section 5.8 or Subsection 6.3(d) of this Deed of Trust,
         that act alone shall not release or change the personal liability of
         any person for the payment and performance of the Secured Obligations
         then outstanding, or the lien of this Deed of Trust on all or the
         remainder of the Property for full payment and performance of all
         outstanding Secured Obligations. The liability of the original Grantor
         shall not be released or changed if Beneficiary grants any successor in
         interest to Grantor any extension of time for payment, or modification
         of the terms of payment, of any Secured Obligation. Beneficiary shall
         not be required to comply with any demand by the original Grantor that
         Beneficiary refuse to grant such an extension or modification to, or
         commence proceedings against, any such successor in interest.

                  (b) Beneficiary may take any of the actions permitted under
         Subsections 6.3(b) and/or 6.3(c) regardless of the adequacy of the
         security for the Secured Obligations, or

Huntington, West Virginia

                                      -20-

<PAGE>

         whether any or all of the Secured Obligations have been declared to be
         immediately due and payable, or whether notice of default and election
         to sell has been given under this Deed of Trust.

                  (c) From time to time, Beneficiary may apply to any court of
         competent jurisdiction for aid and direction in executing and enforcing
         the rights and remedies created under this Deed of Trust. Beneficiary
         may from time to time obtain orders or decrees directing, confirming or
         approving acts in executing and enforcing these rights and remedies.

         8.4      Merger. No merger shall occur as a result of Beneficiary's
acquiring any other estate in or any other lien on the Property unless
Beneficiary consents to a merger in writing.

         8.5      Joint and Several Liability. If Grantor consists of more than
one person, each shall be jointly and severally liable for the faithful
performance of all of Grantor's obligations under this Deed of Trust.

         8.6      Applicable Law. The creation, perfection and enforcement of
the lien of this Deed of Trust shall be governed by the law of the State in
which the property is located. Subject to the foregoing, in all other respects,
this Deed of Trust shall be governed by the substantive laws of the State of
West Virginia.

         8.7      Successors in Interest. The terms, covenants and conditions of
this Deed of Trust shall be binding upon and inure to the benefit of the heirs,
successors and assigns of the parties. However, this Section 8.7 does not waive
the provisions of Section 6.1 above.

         8.8      Interpretation.

                  (a) Whenever the context requires, all words used in the
         singular will be construed to have been used in the plural, and vice
         versa, and each gender will include any other gender. The captions of
         the sections of this Deed of Trust are for convenience only and do not
         define or limit any terms or provisions. The word "include(s)" means
         "include(s), without limitation," and the word "including" means
         "including, but not limited to."

                  (b) The word "obligations" is used in its broadest and most
         comprehensive sense, and includes all primary, secondary, direct,
         indirect, fixed and contingent obligations. It further includes all
         principal, interest, prepayment charges, late charges, loan fees and
         any other fees and charges accruing or assessed at any time, as well as
         all obligations to perform acts or satisfy conditions.

                  (c) No listing of specific instances, items or matters in any
         way limits the scope or generality of any language of this Deed of
         Trust. The Exhibits to this Deed of Trust are hereby incorporated in
         this Deed of Trust.

         8.9      In-House Counsel Fees. Whenever Grantor is obligated to pay or
reimburse Beneficiary for any attorneys' fees, those fees shall include the
reasonable and customary allocated costs for services of in-house counsel.

Huntington, West Virginia

                                      -21-

<PAGE>

         8.10     Waiver of Statutory Rights. To the extent permitted by law,
Grantor hereby agrees that it shall not and will not apply for or avail itself
of any appraisement, valuation, stay, extension or exemption laws, or any
so-called "Moratorium Laws," now existing or hereafter enacted, in order to
prevent or hinder the enforcement or foreclosure of this Deed of Trust, but
hereby waives the benefit of such laws. Grantor for itself and all who may claim
through or under it waives any and all right to have the property and estates
comprising the Property marshalled upon any foreclosure of the lien hereof and
agrees that any court having jurisdiction to foreclose such lien may order the
Property sold as an entirety. Grantor hereby waives any and all rights of
redemption from sale under any judgment of foreclosure of this Deed of Trust on
behalf of Grantor and on behalf of each and every person acquiring any interest
in or title to the Property of any nature whatsoever, subsequent to the date of
this Deed of Trust. The foregoing waiver of right of redemption is made pursuant
to the provisions of applicable law.

         8.11     Severability. If any provision of this Deed of Trust should be
held unenforceable or void, that provision shall be deemed severable from the
remaining provisions and shall in no way affect the validity of this Deed of
Trust except that if such provision relates to the payment of any monetary sum,
then Beneficiary may, at its option, declare all Secured Obligations immediately
due and payable.

         8.12     Notices. Any notice, demand, request or other communication
which any party hereto may be required or may desire to give hereunder shall be
in writing and shall be deemed to have been properly given (a) if hand
delivered, when delivered; (b) if mailed by United States Certified Mail
(postage prepaid, return receipt requested), three Business Days after mailing
(c) if by Federal Express or other reliable overnight courier service, on the
next Business Day after delivered to such courier service or (d) if by
telecopier on the day of transmission so long as copy is sent on the same day by
overnight courier as set forth below::

Grantor:          Glimcher Properties Limited Partnership
                  150 East Gay Street
                  Columbus, Ohio 43215
                  Attention: General Counsel
                  Telephone: (614) 887-5619
                  Facsimile: (614) 621-8863

With a copy to:   Squire, Sanders, & Dempsey
                  1300 Huntington Center
                  41 South High Street
                  Columbus, Ohio 43215
                  Attention:  Kim A. Rieck, Esq.
                  Telephone: (614) 365-2804
                  Facsimile: (614) 365 2499

Trustee:          Molly Baber Frick
                  Bailes, Craig & Yon
                  401 Tenth Street
                  Huntington, West Virginia 25720
                  Telephone: 304-697-4700

Huntington, West Virginia

                                      -22-

<PAGE>

                  Facsimile: 304-697-4714

Beneficiary:      KeyBank National Association
                  127 Public Square
                  Cleveland, Ohio 44114
                  Attention:  Real Estate Capital
                  Phone: 216-689-4660
                  Facsimile: 216-689-4997

With a copy to:   Sonnenschein Nath & Rosenthal, LLP
                  8000 Sears Tower
                  233 South Wacker
                  Chicago, Illinois 60606
                  Attention: Pat Moran, Esq.
                  Telephone 312-876-8132
                  Facsimile 312-876-7932

or at such other address as the party to be served with notice may have
furnished in writing to the party seeking or desiring to serve notice as a place
for the service of notice.

         Any notice or demand delivered to the person or entity named above to
accept notices and demands for Grantor shall constitute notice or demand duly
delivered to Grantor, even if delivery is refused.

         8.13     Future Advances. This Deed of Trust is given to, and the
parties intend that it shall secure indebtedness, exclusive of interest thereon,
in a maximum amount equal to the Aggregate Commitment from time to time under
the Credit Agreement which shall be an amount up to $150,000,000 which
indebtedness may include advances made at the request of Grantor or its
respective successor(s) in title after this Deed of Trust is filed of record to
the fullest extent and with the highest priority contemplated by law (including
disbursements that the Lenders may, but shall not be obligated to, make under
this Deed of Trust, the Loan Documents or any other document with respect
thereto) plus interest thereon, and any disbursements made for the enforcement
of this Deed of Trust and any remedies hereunder, payment of taxes, special
assessments, utilities or insurance on the Property and interest on such
disbursements and all disbursements by Beneficiary pursuant to applicable law
(all such indebtedness being hereinafter referred to as the maximum amount
secured hereby). This Deed of Trust shall be valid and have priority to the
extent of the maximum amount secured hereby over all subsequent liens and
encumbrances, including statutory liens, excepting solely taxes and assessments
levied on the Property given priority by law. All future advances under the
Credit Agreement, the Notes, this Deed of Trust and the other Loan Documents
shall have the same priority as if the future advance was made on the date that
this Deed of Trust was recorded. THE FUTURE ADVANCES TO BE SECURED BY THIS
CREDIT LINE DEED OF TRUST ARE INTENDED TO BE OBLIGATORY FOR PURPOSES OF WEST
VIRGINIA CODE SECTION 38-1-14 (a)(3).

Huntington, West Virginia

                                      -23-

<PAGE>

         8.14     Beneficiary's Lien for Service Charge and Expenses. At all
times, regardless of whether any Loan proceeds have been disbursed, this Deed of
Trust secures the payment of any and all loan commissions, service charges,
liquidated damages, expenses and advances due to or incurred by Beneficiary not
to exceed the maximum amount secured hereby. For purposes hereof, all
obligations of Grantor to Beneficiary under all Rate Management Transactions and
any indebtedness or obligation contained therein or evidenced thereby shall be
considered an obligation of Grantor secured hereby, pursuant to the Credit
Agreement; provided however that in no event shall the total amount secured
hereby exceed $150,000,000.

         8.15     Advances. The loan evidenced by the Notes is a "revolving
credit loan". The lien of the Deed of Trust shall secure all advances made
pursuant to the terms of the Agreement to the same extent as if such future
advances were made on the date of execution of the Deed of Trust, provided that
such advances are made within twenty (20) years from the date hereof. Although
there may be no indebtedness outstanding on the Note at the time any such
advance is made, the lien of the Deed of Trust as to third persons without
actual notice thereof, shall be valid as to all such indebtedness and future
advances from the time this Deed of Trust is filed for record. The total amount
of the indebtedness evidenced by the Notes and secured by the Deed of Trust may
increase or decrease from time to time, but the total unpaid balance so secured
at any one time shall not exceed the maximum amount specified in Section 7.14
plus interest thereon and any disbursements made for the payment of taxes,
special assessments, insurance or other disbursements made pursuant to the terms
of this Deed of Trust, the Credit Agreement, or the other Loan Documents.

         8.16     WAIVER OF TRIAL BY JURY. GRANTOR HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS DEED OF TRUST, THE NOTE,
OR ANY OF THE OTHER LOAN DOCUMENTS, THE LOAN OR ANY OTHER STATEMENTS OR ACTIONS
OF GRANTOR OR BENEFICIARY. GRANTOR ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN
THE SIGNING OF THIS DEED OF TRUST AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS
DISCUSSED THIS WAIVER WITH SUCH LEGAL COUNSEL. GRANTOR FURTHER ACKNOWLEDGES THAT
(i) IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER,
(ii) THIS WAIVER IS A MATERIAL INDUCEMENT FOR BENEFICIARY TO MAKE THE LOAN,
ENTER INTO THIS DEED OF TRUST AND EACH OF THE OTHER LOAN DOCUMENTS, AND (iii)
THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH OTHER LOAN DOCUMENTS AS IF
FULLY INCORPORATED THEREIN.

         8.17     Incorporation of Credit Agreement and Environmental Indemnity
Agreement. The terms and provisions of the Credit Agreement and that certain
Environmental Indemnity Agreement (the "Indemnity") dated as of even date
herewith, are incorporated herein by express reference. All advances and
indebtedness arising and accruing under the Credit Agreement from time to time,
whether or not the resulting indebtedness secured hereby may exceed the face
amount of the Notes, shall be secured hereby to the same extent as though said
Credit Agreement were fully incorporated in this Deed of Trust, and the
occurrence of any Event of Default under said Credit Agreement shall constitute
a Event of Default under this Deed of Trust entitling Beneficiary to all of the
rights and remedies conferred upon Beneficiary by the terms of both this Deed of
Trust and the Credit Agreement. Grantor hereby agrees to comply with all
covenants

Huntington, West Virginia

                                      -24-

<PAGE>

and fulfill all obligations set forth in the Credit Agreement and Indemnity
which pertain to the Premises as if Grantor were a party to such documents. In
the event of any conflict or inconsistency between the terms of this Deed of
Trust and the Credit Agreement or Indemnity, the terms and provisions of the
Credit Agreement or Indemnity as the case may be, shall in each instance govern
and control.

         8.18     Inconsistencies. In the event of any inconsistency between
this Deed of Trust and the Credit Agreement, the terms hereof shall be
controlling as necessary to create, preserve and/or maintain a valid security
interest upon the Property, otherwise the provisions of the Credit Agreement
shall be controlling.

         8.19     Partial Invalidity; Maximum Allowable Rate of Interest.
Grantor and Beneficiary intend and believe that each provision in this Deed of
Trust and the Notes comports with all applicable local, state and federal laws
and judicial decisions. However, if any provision or provisions, or if any
portion of any provision or provisions, in this Deed of Trust or the Notes is
found by a court of law to be in violation of any applicable local, state or
federal ordinance, statute, law, administrative or judicial decision, or public
policy, and if such court should declare such portion, provision or provisions
of this Deed of Trust and the Notes to be illegal, invalid, unlawful, void or
unenforceable as written, then it is the intent both of Grantor and Beneficiary
that such portion, provision or provisions shall be given force to the fullest
possible extent that they are legal, valid and enforceable, that the remainder
of this Deed of Trust and the Notes shall be construed as if such illegal,
invalid, unlawful, void or unenforceable portion, provision or provisions were
not contained therein, and that the rights, obligations and interest of Grantor
and Beneficiary under the remainder of this Deed of Trust and the Notes shall
continue in full force and effect. All agreements herein and in the Notes are
expressly limited so that in no contingency or event whatsoever, whether by
reason of advancement of the proceeds hereof, acceleration of maturity of the
unpaid principal balance of the Notes, or otherwise, shall the amount paid or
agreed to be paid to the Holders for the use, forbearance or detention of the
money to be advanced hereunder exceed the highest lawful rate permissible under
applicable usury laws. If, from any circumstances whatsoever, fulfillment of any
provision hereof or of the Notes or any other agreement referred to herein, at
the time performance of such provision shall be due, shall involve transcending
the limit of validity prescribed by law which a court of competent jurisdiction
may deem applicable hereto, then, ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity and if from any circumstance the
Holders shall ever receive as interest an amount which would exceed the highest
lawful rate, such amount which would be excessive interest shall be applied to
the reduction of the unpaid principal balance due under the Notes and not to the
payment of interest.

         8.20     UCC Financing Statements. Grantor hereby authorizes
Beneficiary to file UCC financing statements to perfect Beneficiary's security
interest in any part of the Property. In addition, Grantor agrees to sign any
and all other documents that Beneficiary deems necessary in its sole discretion
to perfect, protect, and continue Beneficiary's lien and security interest in
the Property.

         8.21     Applicable Law. This Deed of Trust shall be construed,
interpreted and governed by the laws of the State in which the Premises are
located.

Huntington, West Virginia

                                      -25-

<PAGE>

         IN WITNESS WHEREOF, Grantor has executed this Deed of Trust as of the
date first above written.

                                   Grantor:

                                   GLIMCHER PROPERTIES LIMITED PARTNERSHIP,
                                   a Delaware limited partnership, sole member

                                       By: Glimcher Properties Corporation, a
                                           Delaware corporation, Sole General
                                           Partner

                                                   By:__________________________
                                                      George A. Schmidt,
                                                      Executive Vice President

Huntington, West Virginia

                                      -26-

<PAGE>

STATE OF ____________ )
                      ) SS:
COUNTY OF ___________ )

         The foregoing instrument was acknowledged before me this ____ day of
October, 2003, by George A. Schmidt, with whom I am personally acquainted (or
proved to me on the basis of satisfactory evidence), and who, upon oath,
acknowledged himself to be the Executive Vice President of Glimcher Properties
Corporation, a Delaware corporation, the Sole General Partner of Glimcher
Properties Limited Partnership, a Delaware limited partnership, the within named
Grantor, and that he as such Executive Vice President, executed the foregoing
instrument for the purpose therein contained on behalf of Glimcher Properties
Corporation in its capacity as the Sole General Partner of Glimcher Properties
Limited Partnership.

                                       Sign Name:_______________________________
                                                                   Notary Public

                                       Print Name:______________________________

                                                           [NOTARIAL SEAL]

Huntington, West Virginia

                                      -27-

<PAGE>

                                    EXHIBIT A

                             DESCRIPTION OF PREMISES

Huntington, West Virginia<PAGE>

                                                           EXHIBIT 10.39

                                 PROMISSORY NOTE
                                   (A- 1 NOTE)

                                LOAN TERMS TABLE

LENDER: KeyBank National Association, a national banking association, its
        successors and assigns
LOAN NO.: 10021677
LENDER'S ADDRESS: 911 Main Street, Suite #1500, Kansas City, Missouri 64105
LENDER'S FACSIMILE NO.: (816) 221-8848
BORROWER: MFC Beavercreek, LLC, a Delaware limited liability company
BORROWER'S ADDRESS: c/o Glimcher Realty Trust, 150 E. Gay Street, Columbus, Ohio
                    43215
BORROWER'S FACSIMILE NO.: 614-621-8863
BORROWER'S TAX IDENTIFICATION NUMBER: 20-0225220
PROPERTY: Real property located at 2727 Fairfield Commons, Beaver Creek, Ohio
          45431 in Greene County, Ohio and certain personal property
NOTE DATE: October 17, 2003
ORIGINAL PRINCIPAL AMOUNT: $85,500,000.00
MATURITY DATE: November 1, 2014
INTEREST RATE: 5.45 percent (5.45%) per annum
INITIAL INTEREST PAYMENT PER DIEM: $12,943.75
MONTHLY PAYMENT: $482,780.80
MONTHLY PAYMENT DATE: December 1, 2003 and on the first day of each successive
                      month thereafter
FINANCIAL STATEMENT REPORTING DEPOSIT: N/A

         1.       LOAN AMOUNT AND RATE. FOR VALUE RECEIVED, Borrower promises to
pay to the order of Lender, the Original Principal Amount (or so much thereof as
is outstanding from time to time, which is referred to herein as the
"OUTSTANDING PRINCIPAL BALANCE" or "OPB"), with interest on the unpaid OPB from
the date of disbursement of the Loan (as hereinafter defined) evidenced by this
Promissory Note ("NOTE") at the Interest Rate. Interest shall be calculated
based on the daily rate which is produced assuming a three hundred sixty (360)
day year multiplied by the actual number of days elapsed. The loan evidenced by
this Note will sometimes hereinafter be called the "LOAN". The above Loan Terms
Table (hereinafter referred to as the "TABLE") is a part of the Note and all
terms used in this Note that are defined in the Table shall have the meanings
set forth therein.

         2.       PRINCIPAL AND INTEREST PAYMENTS. Payments of principal and
interest shall be made as follows:

         (a)      An interest payment on the date of disbursement of the Loan
proceeds in an amount calculated by multiplying the Initial Interest Payment Per
Diem by the number of days from (and including) the date of the disbursement of
the Loan proceeds through the last day of the calendar month in which the
disbursement was made;

<PAGE>

         (b)      A Monthly Payment on each Monthly Payment Date until the
Maturity Date, each of such payments to be applied: (i) to the payment of
interest computed at the Interest Rate; and (ii) the balance applied toward the
reduction of the principal balance of the Loan; and

         (c)      If not sooner paid, the balance of the principal amount of the
Loan, all unpaid interest thereon, and all other amounts owed to Lender pursuant
to this Note or any other Loan Document (as hereinafter defined) or otherwise in
connection with the Loan or the security for the Loan shall be due and payable
on the Maturity Date.

         3.       SECURITY FOR NOTE. This Note is secured by a first deed of
trust, mortgage, or deed to secure debt (which is herein called the "SECURITY
INSTRUMENT") encumbering the Property. This Note, the Security Instrument, and
all other documents and instruments evidencing and/or securing this Note whether
now or hereafter executed by Borrower or others in connection with or related to
the Loan, including any assignments of leases and rents, other assignments,
security agreements, financing statements, guaranties, indemnity agreements
(including environmental indemnity agreements), letters of credit, or
completion/repair, debt service, tenant finish/leasing commissions, earn-out or
other escrow/holdback or similar agreements or arrangements, together with all
amendments, modifications, substitutions or replacements thereof and that
certain Promissory Note of even date herewith executed by Borrower evidencing a
loan in the principal amount of $28,500,000.00 (the "A-2 NOTE") together with
all amendments, modifications, substitutions or replacements thereof, are
sometimes herein collectively referred to as the "LOAN DOCUMENTS" or
individually as a "LOAN DOCUMENT". All amounts that are now or in the future
become due and payable under this Note, the Security Instrument, or any other
Loan Document, including any Prepayment Consideration (as hereinafter defined)
and all applicable expenses, costs, charges, and fees will be referred to herein
as the "DEBT." The remedies of Lender as provided in this Note, any other Loan
Document, or under applicable law shall be cumulative and concurrent, may be
pursued singularly, successively, or together at the sole discretion of Lender,
and may be exercised as often as an occasion shall occur. The failure to
exercise any right or remedy shall not be construed as a waiver or release of
the right or remedy respecting the same or any subsequent default.

         4.       FINANCIAL STATEMENT REPORTING DEPOSIT; REBATE OF DEPOSIT. In
addition to and concurrently with each Monthly Payment, Borrower shall also pay
to Lender a constant monthly amount equal to the Financial Statement Reporting
Deposit. On the first day of the fourteenth (14th) month following the date of
the initial disbursement of funds under this Note (the "DISBURSEMENT DATE"), and
on an annual basis thereafter during the term of this Note, Lender shall remit
to Borrower a portion of the Financial Statement Reporting Deposit then held by
Lender in an amount equal to the aggregate amount of the Financial Statement
Reporting Deposit actually received by Lender during the twelve (12) month
period ending upon the immediately prior annual anniversary of the Disbursement
Date (the "ANNUAL COMPLIANCE PERIOD") provided that no Event of Default (as
hereinafter defined), including any failure by Borrower to strictly comply with
the financial reporting requirements set forth in the Security Instrument, is
currently existing or has occurred in the Annual Compliance Period.

         5.       PAYMENTS. All amounts payable hereunder shall be payable in
lawful money of the United States of America to Lender at Lender's Address or
such other place as the holder

<PAGE>

hereof may designate in writing. Each payment made hereunder shall be made in
immediately available funds and must state the Borrower's Loan Number. If any
payment of principal or interest on this Note is due on a day other than a
Business Day (as hereinafter defined), such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in
computing interest in connection with such payment. Any payment on this Note
received after 2:00 o'clock p.m. (CST or other applicable current time in Kansas
City, Missouri) shall be deemed to have been made on the next succeeding
Business Day. All amounts due under this Note shall be payable without set off,
counterclaim, or any other deduction whatsoever. All payments from Borrower to
Lender following the occurrence of an Event of Default shall be applied in such
order and manner as Lender elects in its sole discretion in reduction of costs,
expenses, charges, disbursements and fees payable by Borrower hereunder or under
any other Loan Document, in reduction of interest due on unpaid principal, or in
reduction of principal. Lender may, without notice to Borrower or any other
person, accept one or more partial payments of any sums due or past due
hereunder from time to time while an uncured Event of Default exists hereunder,
after Lender accelerates the indebtedness evidenced hereby, and/or after Lender
commences enforcement of its remedies under any Loan Document or applicable law,
without thereby waiving any Event of Default, rescinding any acceleration, or
waiving, delaying, or forbearing in the pursuit of any remedies under the Loan
Documents. Lender may endorse and deposit any check or other instrument tendered
in connection with such a partial payment without thereby giving effect to or
being bound by any language purporting to make acceptance of such instrument an
accord and satisfaction of the indebtedness evidenced hereby. As used herein,
the term "Business Day" shall mean a day upon which commercial banks are not
authorized or required by law to close in Kansas City, Missouri.

         6.       LATE CHARGE. If any sum payable under this Note or any other
Loan Document is not received by Lender by close of business on the fifth (5th)
day after the date on which it was due, Borrower shall pay to Lender an amount
(the "LATE CHARGE") equal to the lesser of (a) five percent (5%) of the full
amount of such sum or (b) the maximum amount permitted by applicable law in
order to help defray the expenses incurred by Lender in handling and processing
such delinquent payment and to compensate Lender for the loss of the use of such
delinquent payment. Any such Late Charge shall be secured by the Security
Instrument and other Loan Documents. The collection of any Late Charge shall be
in addition to, and shall not constitute a waiver of or limitation of, a default
or Event of Default hereunder or a waiver of or limitation of any other rights
or remedies that Lender may be entitled to under any Loan Document or applicable
law.

         7.       DEFAULT RATE. Upon the occurrence of an Event of Default
(including the failure of Borrower to make full payment on the Maturity Date),
Lender shall be entitled to receive and Borrower shall pay interest on the
Outstanding Principal Balance at the rate of five percent (5%) per annum above
the Interest Rate ("DEFAULT RATE") but in no event greater than the maximum rate
permitted by applicable law. Interest shall accrue and be payable at the Default
Rate from the occurrence of an Event of Default until all Events of Default have
been fully cured. Such accrued interest shall be added to the Outstanding
Principal Balance, and interest shall accrue thereon at the Default Rate until
fully paid. Such accrued interest shall be secured by the Security Instrument
and other Loan Documents. Borrower agrees that Lender's right to collect
interest at the Default Rate is given for the purpose of compensating Lender at
reasonable amounts for Lender's added costs and expenses that occur as a result
of Borrower's default and

<PAGE>

that are difficult to predict in amount, such as increased general overhead,
concentration of management resources on problem loans, and increased cost of
funds. Lender and Borrower agree that Lender's collection of interest at the
Default Rate is not a fine or penalty, but is intended to be and shall be deemed
to be reasonable compensation to Lender for increased costs and expenses that
Lender will incur if there occurs an Event of Default hereunder. Collection of
interest at the Default Rate shall not be construed as an agreement or privilege
to extend the Maturity Date or to limit or impair any rights and remedies of
Lender under any Loan Documents. If judgment is entered on this Note, interest
shall continue to accrue post-judgment at the greater of (a) the Default Rate or
(b) the applicable statutory judgment rate.

         8.       ENFORCEMENT AND DEFENSE EXPENSES. Borrower shall pay on
demand, in addition to the principal and interest due hereunder, all expenses of
protecting the security for this Note and all expenses incurred or paid by
Lender in connection with or relating to the Loan Documents and the enforcement
thereof, including costs and expenses incurred or paid in protecting Lender or
its interest in the Property (including attorney's fees and litigation expenses
related to or arising out of any lawsuit or proceeding brought by or against
Lender in any court or other forum, including actions or proceedings brought by
or on behalf of Borrower's bankruptcy estate or any guarantor or indemnitor) or
in connection with the collection of any amounts payable hereunder or in
enforcing Lender's rights under the Security Instrument and the other Loan
Documents with respect to the Property, whether or not any legal proceeding is
commenced hereunder or thereunder and whether or not any default or Event of
Default shall have occurred and is continuing, together with interest thereon at
the Default Rate from the date paid or incurred by Lender until such expenses
are paid by Borrower. Such costs and expenses shall include costs for title
insurance searches and endorsements, retention of collection agents, court costs
and litigation expenses in connection with any proceedings of any nature,
including appellate and bankruptcy proceedings, and all reasonable attorneys'
fees and expenses, whether incurred as part of or separately from any formal
legal proceedings.

         9.       PREPAYMENT; DEFEASANCE.

         (a)      RESTRICTIONS. Voluntary prepayment of this Note is prohibited
except during the last ninety (90) days of the term when prepayment may be made
in whole, but not in part, without payment of any premium or penalty, on any
Monthly Payment Date.

         (b)      DEFEASANCE.

                  (i)      Provided that as of the Release Date (as hereinafter
defined) the Debt has not been accelerated, no Event of Default exists, and no
event has occurred that with the passage of time, giving of notice, or
modification or termination of the automatic stay of Section 362 of the United
States Bankruptcy Code may become an Event of Default ("DEFAULT"), Borrower may
cause the release of the Property from the lien of the Security Instrument and
the other Loan Documents ("DEFEASANCE") on any Monthly Payment Date following
the date which is two (2) years and fifteen (15) days after the "startup day"
within the meaning of Section 860G(a)(9) of the Internal Revenue Code of 1986,
as amended (together with any successor statute and the related Treasury
Department Regulations including temporary regulations, the "CODE") of any "real
estate mortgage investment conduit" within the meaning of Section 860D of the
Code ("REMIC") that holds this Note upon Borrower's satisfaction of the
following conditions:

<PAGE>

                  (A)      Borrower shall provide Lender not less than thirty
         (30) days prior written notice specifying a Monthly Payment Date (such
         Date, or any extended date upon which Borrower and Lender may mutually
         agree is referred to herein as the "RELEASE DATE") on which the
         Defeasance Collateral (as hereinafter defined) is to be delivered;

                  (B)      On the Release Date Borrower shall pay in full all
         accrued and unpaid interest and all other sums due under this Note and
         under the other Loan Documents up to the Release Date, including all
         costs and expenses including attorneys' fees incurred by Lender or its
         servicers or other agent(s) or to or on behalf of any rating agencies
         in connection with such release and related transactions (including the
         review of the proposed Defeasance Collateral and the preparation of the
         Defeasance Security Agreement (as hereinafter defined) and related
         documentation) together with a defeasance processing fee in an amount
         equal to one-half of one percent (0.5%) of the then Outstanding
         Principal Balance but in no event less than (A) $10,000 or greater than
         (B) $20,000; and

                  (C)      Borrower shall deliver the following, all of which
         must be satisfactory to Lender in its sole discretion, at or prior to
         the release of the Property and substitution of the Defeasance
         Collateral:

                           (1)      Direct, non-callable and non-redeemable
         securities evidencing an obligation to pay principal and interest in a
         full and timely manner that are direct obligations of the United States
         of America for the payment of which its full faith and credit is
         pledged (the "DEFEASANCE COLLATERAL") in amounts sufficient to pay all
         scheduled principal and interest payments required under this Note,
         which securities provide for payments prior, but as close as possible,
         to the Business Day prior to each successive Monthly Payment Date
         occurring after the Release Date, with each such payment being equal to
         or greater than the amount of the corresponding Monthly Payment
         required to be made hereunder for the balance of the term hereof plus
         the amount required to be paid on the Maturity Date (the "SCHEDULED
         DEFEASANCE PAYMENTS"), each of which shall be duly endorsed by the
         holder thereof as directed by Lender or accompanied by a written
         instrument of transfer in form and substance satisfactory to Lender in
         its sole discretion (including such instruments as may be required by
         the depository institution or other entity holding such securities or
         the issuer thereof, as the case may be, to effectuate book-entry
         transfers and pledges through the book-entry facilities of such
         institution) in order to perfect upon the delivery of the Defeasance
         Security Agreement (as hereinafter defined) a valid, first priority
         lien and security interest therein in favor of Lender in conformity
         with all applicable state and federal laws governing granting of such
         security interest;

                           (2)      any and all agreements, certificates,
         opinions, documents or instruments required by Lender in its sole
         discretion in connection with the Defeasance including (a) a pledge and
         security agreement, in form and substance satisfactory to Lender in its
         sole discretion, creating a first priority security interest in favor
         of Lender in the Defeasance Collateral (the "DEFEASANCE SECURITY
         AGREEMENT"), and (b) any and all agreements, certificates, opinions,
         documents, or instruments required by Lender in its

<PAGE>

         sole discretion that affect or relate in any way to the maintenance by
         any REMIC that holds this Note of its qualification and status for tax
         purposes as a REMIC;

                           (3)      a certificate of Borrower certifying that
         (a) all of the requirements set forth in this Section 9(b) have been
         satisfied, (b) the transactions that are being carried out pursuant to
         this Section 9(b) (including specifically the release of the lien of
         the Security Instrument) are being effected to facilitate the
         disposition of the Property or any other customary commercial
         transaction and not as part of an arrangement to collateralize a REMIC
         offering with obligations that are not real estate mortgages, and (c)
         the amounts of the Defeasance Collateral comply with all the
         requirements of this section including the requirement that the
         Defeasance Collateral shall generate monthly amounts equal to or
         greater than the Scheduled Defeasance Payments required to be paid
         under this Note through the Maturity Date;

                           (4)      an opinion of counsel for Borrower,
         delivered by counsel acceptable to Lender in its sole discretion,
         stating, among other things but without substantive qualification, that
         (a) Lender has a valid, duly perfected, first priority security
         interest in the Defeasance Collateral and that the Defeasance Security
         Agreement is enforceable against Borrower in accordance with its terms,
         (b) neither the Defeasance nor any other transaction that occurs
         pursuant to the provisions of this Section 9(b) has caused or will
         cause the Loan (including for this purpose the Loan Documents) to cease
         to be a "qualified mortgage" within the meaning of Section 860G of the
         Code, either under the provisions of Treasury Regulation Sections
         1.860G-2(a)(8) or 1.860G-2(b) (as such regulations may be amended or
         superseded from time to time) or under any other provision of the Code
         or otherwise, and (c) the tax qualification and status of any REMIC or
         any other entity that holds this Note will not be adversely impaired or
         affected as a result of the Defeasance and/or any other transaction
         that occurs pursuant to the provisions of this Section 9(b);

                           (5)      a certificate and opinion delivered by an
         independent certified public accounting firm acceptable to Lender in
         its sole discretion (a) certifying that the amounts of the Defeasance
         Collateral comply with all the requirements of this Section including
         the requirement that the Defeasance Collateral shall generate monthly
         amounts equal to or greater than the Scheduled Defeasance Payments
         required to be paid under this Note through the Maturity Date; and (b)
         setting forth the change in the yield of the Loan that results from the
         Defeasance and any other transactions that occur pursuant to the
         provisions of this Section 9(b), including supporting computations
         which shall be made in a manner that is consistent with the provisions
         of Treasury Regulation Sections 1.1001-3(e)(1) and (2), and opining
         that such change has not constituted or caused and will not constitute
         or cause a significant modification of the Loan (including for this
         purpose the Loan Documents) under such provisions of the regulations;

                           (6)      written confirmation from the rating
         agencies that have rated any of the securities issued by any REMIC that
         holds this Note to the effect that the Defeasance will not result in a
         downgrading, withdrawal or qualification of the respective ratings in
         effect immediately prior to such Defeasance for any rated securities
         then outstanding, and if required by any rating agency or Lender, a
         non-consolidation opinion

<PAGE>

         with respect to the Defeasance Obligor (as hereinafter defined) in form
         and substance satisfactory to Lender and such rating agency; and

                           (7)      Borrower shall (unless otherwise agreed to
         in writing by Lender in its sole discretion), at Borrower's sole
         expense, assign all of its obligations under this Note, together with
         the Defeasance Collateral, to a successor entity ("DEFEASANCE OBLIGOR")
         designated by Lender in its sole discretion (including to an entity
         that is owned and/or controlled by Lender) that is a single purpose,
         bankruptcy remote entity as determined by Lender in its sole
         discretion. The Defeasance Obligor shall execute an assumption
         agreement pursuant to which it shall assume Borrower's obligations
         under this Note, the Loan Documents, and the Defeasance Security
         Agreement. As conditions to such assignment and assumption, Borrower
         shall (a) deliver to Lender an opinion of counsel delivered by counsel
         acceptable to Lender in its sole discretion stating, among other
         things, that such assumption agreement has been duly authorized and is
         enforceable against Borrower and the Defeasance Obligor in accordance
         with its terms, that the Note, the Defeasance Security Agreement and
         the other Loan Documents, as so assumed, have been duly authorized and
         are enforceable against the Defeasance Obligor in accordance with their
         respective terms, and that the delivery of the Defeasance Collateral to
         the Defeasance Obligor does not constitute a fraudulent transfer,
         preferential payment, or other voidable transfer under applicable
         bankruptcy law and (b) pay all costs and expenses including attorneys'
         fees incurred by Lender or its servicer or other agent(s) in connection
         with such assignment and assumption (including the review of the
         proposed transferee and the preparation of the assumption agreement and
         related documentation). Upon such assumption, Borrower shall be
         relieved of its obligations under this Note, the Defeasance Security
         Agreement and the other Loan Documents, other than those obligations
         which are specifically intended to survive the payment of this Note and
         the termination, satisfaction or assignment of this Note, the
         Defeasance Security Agreement or the other Loan Documents or the
         exercise of Lender's rights and remedies under any of such documents
         and instruments.

                  (ii)     Upon compliance with the requirements of this
Section, Lender shall release the Property from the lien of the Security
Instrument and the other Loan Documents, and the Defeasance Collateral shall
constitute collateral which shall secure this Note and all other obligations
under the Loan Documents. Lender will, at Borrower's expense, execute and
deliver any agreements reasonably requested by Borrower to release the lien of
the Security Instrument from the Property. Borrower, pursuant to the Defeasance
Security Agreement, shall authorize and direct that the payments received from
Defeasance Collateral be made directly to Lender and applied to satisfy the
obligations of Borrower under this Note.

                  (iii)    Upon the release of the Property in accordance with
this Section 9(b), Borrower shall have no further right to prepay this Note.
Borrower shall pay any revenue, documentary stamp or intangible taxes or any
other tax or charge due in connection with the transfer of this Note or
otherwise required to accomplish the agreements of this Section.

                  (iv)     If any notice of defeasance is given pursuant to
Section 9(b)(i)(A), Borrower shall be required to defease the Loan on the
Release Date (unless such notice is revoked by Borrower prior to the Release
Date in which event Borrower shall immediately

<PAGE>

reimburse Lender for any and all reasonable costs and expenses incurred by
Lender in connection with Borrower's giving of such notice and revocation).

                  (v)      At Borrower's request, Lender may agree in its sole
discretion that Lender or its servicer or other agent, acting on Borrower's
behalf as Borrower's agent and attorney-in-fact, shall purchase the Defeasance
Collateral that Borrower is required to deliver to Lender pursuant to Section
9(b)(i)(C)(1). If such an agreement is made then Borrower shall deposit with
Lender or Lender's servicer or other agent, as directed by Lender or Lender's
agent(s), on or prior to the Release Date a sum of money sufficient to purchase
the Defeasance Collateral. By making such deposit Borrower shall thereby appoint
Lender or Lender's servicer or other agent as Borrower's agent and
attorney-in-fact, with full power of substitution, for the purpose of purchasing
the Defeasance Collateral with the funds so provided and delivering the
Defeasance Collateral to Lender pursuant to Section 9(b)(i)(C)(1).

                  (vi)     Notwithstanding any release of the Security
Instrument or any Defeasance hereunder, the Defeasance Obligor shall be bound by
and obligated under Sections 3.1 (Payment of Debt), 7.2 (Further Acts Etc.),
7.4(a) (Estoppel Certificates), 11.2 (Application of Proceeds), 11.7 (Other
Rights Etc.) and 14.2 (Marshalling and Other Matters) and Article 13
(Indemnification) of the Security Instrument; provided, however, that all
references therein to "PROPERTY" or "PERSONAL PROPERTY" shall be deemed to refer
only to the Defeasance Collateral delivered to Lender.

         (c)      DEFAULT PREPAYMENT. If a Default Prepayment (as hereinafter
defined) occurs, such Default Prepayment shall be deemed to be a voluntary
prepayment under this Note and in such case the applicable Prepayment
Consideration (as hereinafter defined) shall be due and payable to Lender in
connection with such Default Prepayment. The Prepayment Consideration shall be
secured by all security and collateral for the Loan and shall be added to the
Outstanding Principal Balance for all purposes including accrual of interest,
judgment on the Note, foreclosure (whether through power of sale, judicial
proceeding, or otherwise), redemption, and bankruptcy (including pursuant to
Section 506 of the United States Bankruptcy Code). The term "DEFAULT PREPAYMENT"
shall mean a prepayment of any portion of the principal amount of this Note made
after occurrence of a Default or Event of Default under any circumstances
including a prepayment in connection with reinstatement of the Security
Instrument provided by statute under foreclosure proceedings or exercise of
power of sale, any statutory right of redemption exercised by Borrower or any
other party having a statutory right to redeem or prevent foreclosure or power
of sale, any sale in foreclosure or under exercise of a power of sale or
otherwise (including pursuant to a credit bid made by Lender in connection with
such sale), or any other collection action by Lender. Classification and
treatment of Lender's claim pursuant to a plan of reorganization in bankruptcy
shall also be deemed to be a Default Prepayment hereunder. The "PREPAYMENT
CONSIDERATION" (as the term is used in this Note) shall mean the present value,
as of the date of the occurrence of the Default, of the remaining scheduled
payments of principal and interest from the date of the occurrence of the
Default through the Maturity Date (including any balloon payment), which shall
be determined by discounting such payments at the Discount Rate (hereinafter
defined) less the amount of principal being prepaid. The term "DISCOUNT RATE"
shall mean the rate that, when compounded monthly, is equivalent to the Treasury
Rate (hereinafter defined) when compounded semi-annually. The term "TREASURY
RATE" shall mean the yield calculated by the linear interpolation of the yields,
as reported in

<PAGE>

Federal Reserve Statistical Release H.15-Selected Interest Rates under the
heading U.S. Government Securities/Treasury Constant Maturities for the week
ending prior to the Prepayment Date, of U.S. Treasury constant maturities with
maturity dates (one longer and one shorter) most nearly approximating the
Maturity Date. (If Release H.15 is no longer published, Lender shall select a
comparable publication to determine the Treasury Rate.)

         10.      MAXIMUM RATE PERMITTED BY LAW. All agreements in this Note and
all other Loan Documents are expressly limited so that in no contingency or
event whatsoever, whether by reason of acceleration of maturity of the
indebtedness evidenced hereby or otherwise, shall the amount agreed to be paid
hereunder for the use, forbearance, or detention of money exceed the highest
lawful rate permitted under applicable usury laws. If, from any circumstance
whatsoever, fulfillment of any provision of this Note or any other Loan Document
at the time performance of such provision shall be due shall involve exceeding
any usury limit prescribed by law that a court of competent jurisdiction may
deem applicable hereto, then, ipso facto, the obligations to be fulfilled shall
be reduced to allow compliance with such limit, and if, from any circumstance
whatsoever, Lender shall ever receive as interest an amount that would exceed
the highest lawful rate, the receipt of such excess shall be deemed a mistake
and shall be canceled automatically or, if theretofore paid, such excess shall
be credited against the principal amount of the indebtedness evidenced hereby to
which the same may lawfully be credited, and any portion of such excess not
capable of being so credited shall be refunded immediately to Borrower.

         11.      EVENTS OF DEFAULT; ACCELERATION OF AMOUNT DUE. Lender may in
its sole discretion, without notice to Borrower, declare the entire Debt,
including the principal balance of the Loan, all accrued interest, and all
costs, expenses, charges and fees payable under any Loan Document, together with
any applicable Prepayment Consideration, immediately due and payable, and Lender
shall have all remedies available to it at law or equity for collection of the
amounts due, if any of the following (the "EVENTS OF DEFAULT") occurs:

                  (a)      Borrower fails to make full and punctual payment of
any Monthly Payment or any other amount payable on a monthly basis under this
Note, the Security Instrument or any other Loan Document within five (5) days of
the date on which such payment was due; or

                  (b)      Borrower fails to make full payment of the Debt when
due, whether on the Maturity Date, upon acceleration or prepayment, or
otherwise; or

                  (c)      Borrower fails to make full and punctual payment of
any Late Charges, costs and expenses due hereunder, or any other sum of money
required to be paid to Lender under this Note, the Security Instrument or under
any other Loan Document (other than any payment described in subclauses (a) and
(b) immediately above), which failure is not cured on or before the fifth (5th)
day after Lender's written notice to Borrower that such payment is required.

                  (d)      an Event of Default occurs under the Security
Instrument or any other Loan Document.

         12.      TIME OF ESSENCE. Time is of the essence with regard to each
provision contained in this Note.

<PAGE>

         13.      TRANSFER AND ASSIGNMENT. This Note may be freely transferred
and assigned by Lender. Borrower's right to transfer its rights and obligations
with respect to the Debt, and to be released from liability under this Note,
shall be governed by the Security Instrument.

         14.      AUTHORITY OF PERSONS EXECUTING NOTE. Borrower warrants and
represents that the persons or officers who are executing this Note and the
other Loan Documents on behalf of Borrower have full right, power and authority
to do so, and that this Note and the other Loan Documents constitute valid and
binding documents, enforceable against Borrower in accordance with their terms,
and that no other person, entity, or party is required to sign, approve, or
consent to, this Note.

         15.      SEVERABILITY. The terms of this Note are severable, and should
any provision be declared by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions shall, at the option of Lender, remain
in full force and effect and shall in no way be impaired.

         16.      BORROWER'S WAIVERS. Borrower and all others liable hereon
hereby waive presentation for payment, demand, notice of dishonor, protest, and
notice of protest, notice of intent to accelerate, and notice of acceleration,
stay of execution and all other suretyship defenses to payment generally. No
release of any security held for the payment of this Note, or extension of any
time periods for any payments due hereunder, or release of collateral that may
be granted by Lender from time to time, and no alteration, amendment or waiver
of any provision of this Note or of any of the other Loan Documents, shall
modify, waive, extend, change, discharge, terminate or affect the liability of
Borrower and any others that may at any time be liable for the payment of this
Note or the performance of any covenants contained in any of the Loan Documents.

         17.      GOVERNING LAW. This Note shall be governed and construed
generally according to the laws of the jurisdiction in which the real property
collateral for this Note is located without regard to the conflicts of law
provisions thereof ("GOVERNING STATE").

         18.      JURISDICTION AND VENUE. BORROWER HEREBY CONSENTS TO PERSONAL
JURISDICTION IN THE GOVERNING STATE. VENUE OF ANY ACTION BROUGHT TO ENFORCE THIS
NOTE OR ANY OTHER LOAN DOCUMENT OR ANY ACTION RELATING TO THE LOAN OR THE DEBT
OR THE RELATIONSHIPS CREATED BY OR UNDER THE LOAN DOCUMENTS ("ACTION") SHALL, AT
THE ELECTION OF LENDER, BE IN (AND IF ANY ACTION IS ORIGINALLY BROUGHT IN
ANOTHER VENUE, THE ACTION SHALL AT THE ELECTION OF LENDER BE TRANSFERRED TO) A
STATE OR FEDERAL COURT OF APPROPRIATE JURISDICTION LOCATED IN THE GOVERNING
STATE. BORROWER HEREBY CONSENTS AND SUBMITS TO THE PERSONAL JURISDICTION OF THE
STATE COURTS OF THE GOVERNING STATE AND OF FEDERAL COURTS LOCATED IN THE
GOVERNING STATE IN CONNECTION WITH ANY ACTION AND HEREBY WAIVES ANY AND ALL
PERSONAL RIGHTS UNDER THE LAWS OF ANY OTHER STATE TO OBJECT TO JURISDICTION
WITHIN SUCH STATE FOR PURPOSES OF ANY ACTION. Borrower hereby waives and agrees
not to assert, as a defense to any Action or a motion to transfer venue of any
Action, (i) any claim that it is not subject to such jurisdiction, (ii) any
claim that any

<PAGE>

Action may not be brought against it or is not maintainable in those courts or
that this Note or any of the other Loan Documents may not be enforced in or by
those courts, or that it is exempt or immune from execution, (iii) that the
Action is brought in an inconvenient forum, or (iv) that the venue for the
Action is in any way improper.

         19.      NOTICES. Any notice required or permitted to be given
hereunder must be in writing and given (a) by depositing same in the United
States mail, addressed to the party to be notified, postage prepaid and
registered or certified with return receipt requested; (b) by delivering the
same in person to such party; (c) by transmitting a facsimile copy to the
correct facsimile phone number of the intended recipient (with a second copy
sent by registered or certified regular mail); or (d) by depositing the same
into the custody of a nationally recognized overnight delivery service addressed
to the party to be notified. In the event of mailing, notices shall be deemed
effective three (3) days after posting; in the event of overnight delivery,
notices shall be deemed effective on the next Business Day following deposit
with the delivery service; in the event of personal service or facsimile
transmissions, notices shall be deemed effective when delivered. For purposes of
notice, the addresses of the parties shall be as set forth in the Table. From
time to time either party may designate another address than the address set
forth for all purposes of this Note by giving the other party no less than ten
(10) days advance notice of such change of address in accordance with the notice
provisions hereof.

         20.      AVOIDANCE OF DEBT PAYMENTS. To the extent that any payment to
Lender and/or any payment or proceeds of any collateral received by Lender in
reduction of the Debt is subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, to Borrower
(or Borrower's successor) as a debtor in possession, or to a receiver or any
other party under any bankruptcy law, state or federal law, common law or
equitable cause, then the portion of the Debt intended to have been satisfied by
such payment or proceeds shall remain due and payable hereunder, be evidenced by
this Note, and shall continue in full force and effect as if such payment or
proceeds had never been received by Lender whether or not this Note has been
marked "paid" or otherwise cancelled or satisfied and/or has been delivered to
Borrower, and in such event Borrower shall be immediately obligated to return
the original Note to Lender and any marking of "paid" or other similar marking
shall be of no force and effect.

         21.      NONRECOURSE.

                  (a)      Subject to the provisions of subsections (b) and (c)
of this Section 21, Lender shall not be entitled to recover any deficiency
judgment against Borrower or any general partner (if any) of Borrower on this
Note, provided, however, the foregoing shall not be interpreted to: (i) impair
or affect the right of Lender to enforce any of its rights or remedies (other
than any right to a deficiency judgment) provided for in any of the Loan
Documents or under applicable law in full accordance with the terms thereof
including but not limited to the right of Lender to name Borrower or any general
partner of Borrower as a party defendant in any action or suit for specific
performance, foreclosure, or sale (or similar remedy) under the Security
Instrument, or any other Loan Document; (ii) impair or affect the validity or
enforceability of any guaranty, indemnity agreement (including but not limited
to any environmental indemnity agreement), letter of credit, or other similar
third party agreement or undertaking made in connection with this Note, the
Security Instrument, or any other Loan

<PAGE>

Document; (iii) impair or affect Lender's right to offset any and all amounts
outstanding under any of the Loan Documents against any claim or amount that may
be asserted against Lender by Borrower or any partners, members, shareholders,
or other owners of legal or beneficial interests in Borrower; or (iv) affect the
validity or enforceability of or impair the right of Lender to bring suit and
obtain specific performance or personal, recourse judgment to enforce the
liability of Borrower or any other person or entity to the extent of, and
Borrower hereby agrees to be personally liable for, any loss, damage, cost,
expense, liability, or claim incurred by or made against Lender (including all
attorneys' fees and expenses and other collection and litigation expenses)
arising out of or in connection with any of the following:

                           (A)      Borrower or any affiliate, agent, or
         employee of Borrower misappropriates any rents or other Property income
         or collateral proceeds including but not limited to insurance or
         condemnation proceeds or awards;

                           (B)      Borrower or any affiliate, agent, or
         employee of Borrower fails to apply or pay over any tenant security
         deposits or other refundable deposits in accordance with the terms of
         the applicable lease or other agreement or the Security Instrument or
         any other Loan Document;

                           (C)      Borrower or any affiliate, agent, or
         employee of Borrower receives rents or other payments from tenants more
         than one month in advance and fails to apply them in accordance with
         the Loan Documents;

                           (D)      following the occurrence of an Event of
         Default, Borrower or any affiliate, agent, or employee of Borrower
         (including Borrower in its capacity as a debtor or debtor in possession
         in a bankruptcy proceeding) fails either to apply rents or other
         Property income, whether collected before or after such Event of
         Default, to the ordinary, customary, and necessary expenses of
         operating the Property or, upon demand, to deliver such rents or other
         Property income to Lender;

                           (E)      waste is committed on the Property during a
         period while Borrower or any affiliate, agent, or employee of Borrower
         is in possession thereof ("waste" meaning the diminution in the
         Property's value resulting from Borrower's negligent or willful failure
         to manage, maintain, repair and otherwise operate the Property in a
         commercially reasonable manner);

                           (F)      any damage to the Property or the Lender is
         caused as a result of the intentional misconduct or gross negligence of
         Borrower or any affiliate, agent, or employee of Borrower;

                           (G)      any Property is removed in violation of the
         terms of the Loan Documents;

                           (H)      Borrower fails, in accordance with the terms
         of the Loan Documents, to maintain insurance or to pay taxes,
         assessments, or other liens or claims that could create liens affecting
         the Property (unless Lender is escrowing funds therefor and fails to
         make such payments or has taken possession of the Property following an
         Event of Default, has received all rents from the Property applicable
         to the period for

<PAGE>

         which such insurance, taxes or other items are due, and thereafter
         fails to make such payments);

                           (I)      there is any fraud or material
         misrepresentation by Borrower or any of its affiliates, any guarantor,
         any indemnitor or any agent, employee, or other person with actual or
         apparent authority to make statements or representations on behalf of
         Borrower, any affiliate of Borrower, or any guarantor or indemnitor
         ("apparent authority" meaning such authority as the principal knowingly
         or negligently permits the agent to assume, or which he holds the agent
         out as possessing); or

                           (J)      Borrower fails, following an Event of
         Default, to deliver to Lender on demand all security deposits, books
         and records relating to the Property and in the possession or control
         of Borrower or any affiliate, agent, or employee of Borrower.

                  (b)      Notwithstanding anything to the contrary in the
provisions of subsection (a) of this Section, Borrower and any general partner
of Borrower shall be personally liable for the Debt if the Property or any part
thereof shall at any time hereafter become property of the estate, or an asset
in a bankruptcy, insolvency, receivership, liquidation, winding up, or other
similar type of proceeding or if Borrower shall at any time hereafter make a
general assignment for the benefits of its creditors.

                  (c)      Nothing herein shall be deemed to constitute a waiver
by Lender of any right Lender may have under Sections 506(a), 506(b), 1111(b) or
any other provision of the United States Bankruptcy Code to file a claim for the
full amount of the Debt (as defined in the Security Instrument) or to require
that all collateral shall continue to secure all of the Debt.

         22.      MISCELLANEOUS. Neither this Note nor any of the terms hereof,
including but not limited to the provisions of this Section, may be terminated,
amended, supplemented, waived or modified orally, but only by an instrument in
writing executed by the party against which enforcement of the termination,
amendment, supplement, waiver or modification is sought, and the parties hereby:
(a) expressly agree that it shall not be reasonable for any of them to rely on
any alleged, non-written amendment to this Note; (b) irrevocably waive any and
all right to enforce any alleged, non-written amendment to this Note; and (c)
expressly agree that it shall be beyond the scope of authority (apparent or
otherwise) for any of their respective agents to agree to any non-written
modification of this Note. If Borrower consists of more than one person or
entity, then the obligations and liabilities of each person or entity shall be
joint and several. As used in this Note, (i) the terms "include," "including"
and similar terms shall be construed as if followed by the phrase "without being
limited to," (ii) words of masculine, feminine, or neuter gender shall mean and
include the correlative words of the other genders, and words importing the
singular number shall mean and include the plural number, and vice versa, (iii)
all captions to the Sections hereof are used for convenience and reference only
and in no way define, limit or describe the scope or intent of, or in any way
affect, this Note, (iv) no inference in favor of, or against, Lender or Borrower
shall be drawn from the fact that such party has drafted any portion hereof or
any other Loan Document, and (v) the words "Lender" and "Borrower" shall include
their respective successors, assigns, heirs, personal representatives, executors
and administrators. In the event of a conflict between or among the terms,
covenants, conditions or provisions of the Loan Documents, the term(s),
covenant(s), condition(s) and/or provision(s) that Lender may

<PAGE>

elect to enforce from time to time so as to enlarge the interest of Lender in
its security, afford Lender the maximum financial benefits or security for the
Debt, and/or provide Lender the maximum assurance of payment of the Debt in full
shall control. BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS BEEN PROVIDED WITH
SUFFICIENT AND NECESSARY TIME AND OPPORTUNITY TO REVIEW THE TERMS OF THIS NOTE,
THE SECURITY INSTRUMENT, AND EACH OF THE LOAN DOCUMENTS, WITH ANY AND ALL
COUNSEL IT DEEMS APPROPRIATE, AND THAT NO INFERENCE IN FAVOR OF, OR AGAINST,
LENDER OR BORROWER SHALL BE DRAWN FROM THE FACT THAT EITHER SUCH PARTY HAS
DRAFTED ANY PORTION HEREOF, OR THE SECURITY INSTRUMENT, OR ANY OF THE LOAN
DOCUMENTS.

         23.      WAIVER OF COUNTERCLAIM AND JURY TRIAL. BORROWER HEREBY
KNOWINGLY WAIVES THE RIGHT TO ASSERT ANY COUNTERCLAIM, OTHER THAN A COMPULSORY
COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST BORROWER BY LENDER OR
ITS AGENTS. ADDITIONALLY, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED ON THE LOAN OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE
LOAN, THIS NOTE, THE SECURITY INSTRUMENT, OR ANY OTHER LOAN DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN), OR
ACTION OF BORROWER OR LENDER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR
LENDER'S MAKING OF THE LOAN.

         24.      LOCAL LAW PROVISIONS. In the event of any inconsistencies
between the terms and conditions of this Section and any other terms and
conditions of this Note (other than the terms and conditions of Section 25), the
terms and conditions of this Section shall be binding.

                                      NONE.

         25.      ADDITIONAL PROVISIONS. In the event of any inconsistencies
between the terms and conditions of this Section and any other terms and
conditions of this Note, the terms and conditions of this Section shall be
binding.

                  25.1 SECURITY FOR NOTE. Section 3 is modified by deleting the
words "or others" in the fourth line thereof and substituting the following
therefor: ", its successors and assigns, or any guarantor."

                  25.2 FINANCIAL STATEMENT REPORTING DEPOSIT. Section 4 is
deleted in its entirety.

                  25.3 ENFORCEMENT AND DEFENSE EXPENSES. Section 8 is modified
by inserting the word "reasonable" in the fifth line thereof between "including"
and "attorney's."

                  25.4 PREPAYMENT. Section 9 is modified in the following
manner:

<PAGE>

                  (a)      Notwithstanding anything to the contrary in Section 9
hereof, Borrower shall not have the right to defease or prepay all or any
portion of the Debt at any time during the term of this Note unless Borrower is
concurrently defeasing or prepaying the indebtedness and obligations evidenced
by or arising under the A-2 Note in accordance with the terms thereof.

                  (b)      The following provisions are added to the end of
Section 9(a):

                  Notwithstanding the foregoing, if a Partial Prepayment Event
(as defined in the Letter of Credit Agreement of even date herewith between
Borrower and Lender ("LETTER OF CREDIT AGREEMENT")) occurs under the Letter of
Credit Agreement, the proceeds of the Letter of Credit (as defined in the Letter
of Credit Agreement) may be applied in prepayment of the Outstanding Principal
Balance of this Note and the A-2 Note on a pro rata basis (a "PARTIAL
PREPAYMENT"), and such Partial Prepayment will be accompanied by all accrued
interest thereon and the Yield Maintenance Amount (as hereinafter defined).
Furthermore, the regularly scheduled monthly payments of principal and interest
under this Note shall be recast by Lender over the remainder of the original
amortization period of thirty years from the date hereof to reflect the reduced
balance of said principal indebtedness. The date of such Partial Prepayment
shall be the "PARTIAL PREPAYMENT DATE.

         Borrower acknowledges that the Yield Maintenance Amount is a bargained
for consideration and not a penalty, and Borrower recognizes that Lender will
incur substantial additional costs and expenses upon the occurrence of a Partial
Prepayment Event, and that the Yield Maintenance Amount compensates Lender for
such costs and expenses and the loss of Lender's investment opportunity for the
principal amount being prepaid during the period from the Partial Prepayment
Date until the Maturity Date. Borrower agrees that Lender shall not, as a
condition to receiving any Yield Maintenance Amount, be obligated to actually
reinvest the amount prepaid in any treasury obligation or in any other manner
whatsoever. The "YIELD MAINTENANCE AMOUNT" (as used herein) shall mean the
excess of: (a) the present value, as of the Partial Prepayment Date, of each of
the then remaining scheduled payments of principal and interest payable under
this Note from the Partial Prepayment Date through the Maturity Date (including
any balloon payment) determined by: (i) subtracting from each then remaining
scheduled payment of principal and interest the amount of principal and interest
that is still scheduled to be paid on the due date thereof following the Partial
Prepayment; and (ii) discounting such payments (using simple discounting) at the
Discount Rate (as defined in Section 9(c) hereof); over (b) the amount of
principal being prepaid.

                  (c)      The word "reasonable" is inserted in the third line
of Section 9(b)(i)(B) between "including" and "attorneys'."

                  (d)      The text of Section 9(b)(i)(C)(1) is deleted and the
following substituted therefor:

                           (1)      Direct, non-callable and non-redeemable
         securities evidencing an obligation to pay principal and interest in a
         full and timely manner that are direct obligations of the United States
         of America for the payment of which its full faith and credit is
         pledged (the "DEFEASANCE COLLATERAL") in amounts sufficient to pay all
         scheduled principal and interest payments required under this Note,
         which securities provide for payments prior, but as close as possible,
         to the Business Day prior to each

<PAGE>

         successive Monthly Payment Date occurring after the Release Date, with
         each such payment being equal to or greater than the amount of the
         corresponding Monthly Payment required to be made hereunder for the
         balance of the term hereof plus the amount required to be paid on the
         Maturity Date (the "SCHEDULED DEFEASANCE PAYMENTS"), each of which
         shall be duly endorsed by the holder thereof as directed by Lender or
         accompanied by a written instrument of transfer in form and substance
         satisfactory to Lender in its sole discretion (including such
         instruments as may be required by the depository institution or other
         entity holding such securities or the issuer thereof, as the case may
         be, to effectuate book-entry transfers and pledges through the
         book-entry facilities of such institution) in order to perfect upon the
         delivery of the Defeasance Security Agreement (as hereinafter defined)
         a valid, first priority lien and security interest therein in favor of
         Lender in conformity with all applicable state and federal laws
         governing granting of such security interest. For purposes of this
         Section, the term "DEFEASANCE COLLATERAL" shall include obligations or
         securities that satisfy the following criteria: (i) such securities or
         obligations are (A) securities or obligations rated "AAA" by S&P and/or
         constitute "Qualified Investments for AAA Financings" and "Eligible
         Investments," each as defined in the then applicable S&P (as defined in
         the Security Instrument) finance criteria, and (B) government
         securities" as defined in Section 2(a)(16) of the Investment Company
         Act of 1940 as amended (15 U.S.C. 80a-1); (ii) each applicable Rating
         Agency (as defined in the Security Instrument) shall have approved such
         securities or obligations; (iii) such securities or obligations comply
         with the criteria set forth in the applicable Sections of the Code and
         Treasury Regulations; and (iv) such securities or obligations are not
         subject to prepayment, call or early redemption.

                  (e)      The word "sole" in the seventh line of Section
9(b)(i)(C)(2) is deleted and "reasonable" substituted therefor.

                  (f)      Section 9(b)(i)(C)(4) is modified by deleting the
following from the second line thereof: "in its sole discretion." Section
9(b)(i)(C)(4) is further modified by inserting the following at the end thereof:
"The opinions set forth in clauses (b) and (c) above may, in Lender's
discretion, be rendered by counsel to Lender at Borrower's sole cost and
expense;"

                  (g)      Section 9(b)(i)(C)(7) is modified by deleting the
following from subsection (a) thereof: ", and that the delivery of the
Defeasance Collateral to the Defeasance Obligor does not constitute a fraudulent
transfer, preferential payment, or other voidable transfer under applicable
bankruptcy law." Section 9(b)(i)(C)(7) is further modified by inserting the word
"reasonable" in the second line of subsection (b) between "including" and
"attorneys'".

                  25.5 MAXIMUM RATE PERMITTED BY LAW. The second sentence of
Section 10 is deleted and the following substituted therefor: "If, from any
circumstance whatsoever, fulfillment of any provision of this Note or any other
Loan Document at the time performance of such provision shall be due shall
involve exceeding any usury limit prescribed by law that a court of competent
jurisdiction may deem applicable hereto, then, ipso facto, the obligations to be
fulfilled shall be reduced to allow compliance with such limit, and if, from any
circumstance whatsoever, Lender shall ever receive as interest an amount that
would exceed the highest lawful rate, the receipt of such excess shall be deemed
a mistake and shall be credited against the principal amount of the indebtedness
evidenced hereby to which the same may lawfully be

<PAGE>

credited, and any portion of such excess not capable of being so credited shall
be refunded immediately to Borrower."

                  25.6 EVENTS OF DEFAULT; ACCELERATION OF AMOUNT DUE. The
following is inserted at the end of Section 11(d) following "Loan Document:" "as
such term is defined therein."

                  25.7 NOTICES. In addition to the notice provisions set forth
above, Lender shall use reasonable efforts to provide a courtesy copy of any
notice required or permitted to be given by Lender to Borrower hereunder to: Kim
A. Rieck, Esq., Squire, Sanders, & Dempsey, 1300 Huntington Center, 41 South
High Street, Columbus, Ohio 43215, Facsimile: 614-365-2499. Lender's failure to
send any courtesy copy shall not impair the effect of the notice sent to
Borrower.

                  25.8 NONRECOURSE. Section 21 is modified in the following
manner:

                  (a)      Section 21(a) is modified in its entirety to state
the following:

                  Subject to the qualifications below, Lender shall not enforce
the liabilities and obligations of Borrower to perform and observe the
obligations contained in this Note, the Security Instrument or the other Loan
Documents by any action or proceeding wherein a money judgment shall be sought
against Borrower, except that Lender may bring a foreclosure action, an action
for specific performance or any other appropriate action or proceeding to enable
Lender to enforce and realize upon its interest under this Note, the Security
Instrument and the other Loan Documents, or in the Property, the Rents (as
defined in the Security Instrument), or any other collateral given to Lender
pursuant to the Loan Documents; provided, however, that, except as specifically
provided herein, any judgment in any such action or proceeding shall be
enforceable against Borrower only to the extent of Borrower's interest in the
Property, in the Rents and in any other collateral given to Lender, and Lender,
by accepting this Note, the Security Instrument and the other Loan Documents,
agrees that it shall not sue for, seek or demand any deficiency judgment against
Borrower in any such action or proceeding under or by reason of or under or in
connection with this Note, the Security Instrument or the other Loan Documents.
The provisions of this Section 21 shall not, however: (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by any of the Loan
Documents; (ii) impair the right of Lender to name Borrower as a party defendant
in any action or suit for foreclosure and sale under the Mortgage; (iii) affect
the validity or enforceability of or any guaranty made in connection with the
Loan or any of the rights and remedies of Lender thereunder; (iv) impair the
right of Lender to obtain the appointment of a receiver; (v) impair the
enforcement of the Assignment of Leases; (vi) constitute a prohibition against
Lender to seek a deficiency judgment against Borrower, but only to fully realize
the security granted by the Security Instrument or to commence any other
appropriate action or proceeding in order for Lender to exercise its remedies
against the Property; or (vii) constitute a waiver of the right of Lender to
enforce the liability and obligation of Borrower, by money judgment or
otherwise, to the extent of any loss, damage, cost, expense, liability, claim or
other obligation incurred by Lender (including attorneys' fees and costs
reasonably incurred) arising out of or in connection with the following:

                  (A)      fraud or intentional misrepresentation by Borrower or
         any Guarantor (as defined in the Security Instrument) in connection
         with the Loan;

<PAGE>

                  (B)      the willful misconduct of Borrower or any Guarantor
         in connection with the Loan;

                  (C)      the breach of any representation, warranty, covenant
         or indemnification provision in the Environmental Indemnity Agreement
         executed this same date herewith by Borrower and Guarantor, or in the
         Security Instrument concerning environmental laws, hazardous substances
         and asbestos and any indemnification of Lender with respect thereto in
         either document;

                  (D)      the wrongful removal or destruction of any portion of
         the Property after an Event of Default that adversely affects the value
         of the Property;

                  (E)      the misapplication or conversion by Borrower of (A)
         any insurance proceeds paid by reason of any loss, damage or
         destruction to the Property, (B) any awards or other amounts received
         in connection with the condemnation of all or a portion of the
         Property, or (C) any Rents following an Event of Default;

                  (F)      failure to pay charges for labor or materials or
         other charges that can create liens on any portion of the Property;

                  (G)      any security deposits, advance deposits or any other
         deposits collected with respect to the Property which are not delivered
         to Lender upon a foreclosure of the Property or action in lieu thereof,
         except to the extent any such security deposits were applied in
         accordance with the terms and conditions of any of the Leases;

                  (H)      Borrower's indemnifications of Lender set forth in
         this Note and the other Loan Documents;

                  (I)      the first full monthly payment of principal and
         interest under the Note is not paid when due;

                  (J)      failure of Borrower to (A) permit on-site inspections
         of the Property, (B) provide financial information, (C) maintain its
         status as a single purpose entity or (D) appoint a new property manager
         upon the request of Lender after an Event of Default, each as required
         by, and in accordance with the terms and provisions of, the Security
         Instrument;

                  (K)      failure of Borrower to obtain Lender's prior written
         consent to any subordinate financing or other voluntary lien
         encumbering the Property;

                  (L)      failure of Borrower to obtain Lender's prior written
         consent to any assignment, transfer, or conveyance of the Property or
         any interest therein as required by the Security Instrument or
         hereunder; or

                  (M)      Borrower's failure to pay the Yield Maintenance
         Amount in the event of a Partial Prepayment Event.

<PAGE>

                  (b)      Section 21(b) is modified in its entirety to state
the following:

                  "Notwithstanding anything to the contrary in this Note or any
of the Loan Documents, the Debt shall be fully recourse to Borrower in the event
that any petition for bankruptcy, reorganization or arrangement pursuant to
federal bankruptcy law, or any similar federal or state law, shall be filed by
or consented to by Borrower."

                  (c)      Section 21(c) is modified in the following manner to
state the following:

                  "Notwithstanding anything to the contrary in this Note or any
of the Loan Documents, Lender shall not be deemed to have waived any right which
Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of
the U.S. Bankruptcy Code to file a claim for the full amount of the Debt secured
by the Security Instrument or to require that all collateral shall continue to
secure all of the Debt owing to Lender in accordance with the Loan Documents."

                [THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         Intending to be fully bound, Borrower has executed this Note effective
as of the day and year first above written.

BORROWER:                               MFC BEAVERCREEK, LLC, a Delaware limited
                                        liability company

                                        By: GLIMCHER PROPERTIES LIMITED
                                            PARTNERSHIP, a Delaware limited
                                            partnership, its sole member

                                            By: Glimcher Properties Corporation,
                                                a Delaware corporation, its
                                                general partner

                                                By: ____________________________
                                                       George A. Schmidt
                                                       Executive Vice President

   Pay to the order of ___________________________________, without recourse.

                                        KEYBANK NATIONAL ASSOCIATION, a national
                                        banking association

                                        By: ____________________________________
                                        Print Name: ____________________________
                                        Print Title: ___________________________

<PAGE>

State of ___________________________

County of __________________________

         The foregoing instrument was acknowledged before me this October __,
2003, by GEORGE A. SCHMIDT, Executive Vice President of Glimcher Properties
Corporation, a Delaware corporation, general partner of Glimcher Properties
Limited Partnership, a Delaware limited partnership, sole member of MFC
Beavercreek, LLC, a Delaware limited liability company, on behalf of the limited
liability company.

                                        ________________________________________
                                                      Notary Public

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