Document:

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                                  Exhibit 4.5

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (the "Agreement") dated as of July 18,
2003 among Developers Diversified Realty Corporation, an Ohio corporation (the
"Company"), and Banc of America Securities LLC and J.P. Morgan Securities Inc.
and the other parties referred to in Annex A hereto (each, an "Initial
Purchaser" and collectively, the "Initial Purchasers").

         This Agreement is made pursuant to the Purchase Agreement dated July
11, 2003 by and among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of $300,000,000 aggregate principal amount of the Company's 4.625%
Notes due 2010 (the "Securities"). In order to induce the Initial Purchasers to
enter into the Purchase Agreement and in satisfaction of a condition to the
Initial Purchasers' obligations thereunder, the Company has agreed to provide to
the Initial Purchasers and their respective direct and indirect transferees and
assigns the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the closing under the Purchase
Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1. Definitions. As used in this Agreement, the following capitalized
defined terms shall have the following meanings:

                  "1933 Act" shall mean the Securities Act of 1933, as amended
         from time to time, and the rules and regulations of the SEC promulgated
         thereunder.

                  "1934 Act" shall mean the Securities Exchange Act of 1934, as
         amended from time to time, and the rules and regulations of the SEC
         promulgated thereunder.

                  "Additional Interest" shall have the meaning set forth in
         Section 2(e) hereof.

                  "Banc of America" shall mean Banc of America Securities LLC
         and its successors.

                  "Closing Time" shall mean July 18, 2003.

                  "Depositary" shall mean The Depository Trust Company, or any
         other depositary appointed by the Company, including any agent thereof;
         provided, however, that any such depositary must at all times have an
         address in the Borough of Manhattan, The City of New York.

                  "Event Date" shall have the meaning set forth in Section 2(e).

                  "Exchange Offer" shall mean the exchange offer by the Company
         of Exchange Securities for Registrable Securities pursuant to Section
         2(a) hereof.
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                  "Exchange Offer Registration" shall mean a registration under
         the 1933 Act effected pursuant to Section 2(a) hereof.

                  "Exchange Offer Registration Statement" shall mean an exchange
         offer registration statement on Form S-4 (or, if applicable, on another
         appropriate form) covering the Registrable Securities, and all
         amendments and supplements to such registration statement, in each case
         including the Prospectus contained therein, all exhibits thereto and
         all material incorporated or deemed to be incorporated by reference
         therein.

                  "Exchange Securities" shall mean the 4.625% Notes due 2010,
         issued by the Company under the Indenture containing terms identical to
         the Securities (except that (i) interest thereon shall accrue from the
         last date to which interest has been paid or duly provided for on the
         Securities or, if no such interest has been paid or duly provided for,
         from the Interest Accrual Date, (ii) provisions relating to an increase
         in the stated rate of interest thereon upon the occurrence of a
         Registration Default shall be eliminated, and (iii) the transfer
         restrictions and legends relating to restrictions on ownership and
         transfer thereof as a result of the issuance of the Securities without
         registration under the 1933 Act shall be eliminated) to be offered to
         Holders of Registrable Securities in exchange for Registrable
         Securities pursuant to the Exchange Offer.

                  "Holders" shall mean (i) the Initial Purchasers, for so long
         as they own any Registrable Securities, and each of their respective
         successors, assigns and direct and indirect transferees who become
         registered owners of Registrable Securities under the Indenture and
         (ii) each Participating Broker-Dealer that holds Exchange Securities
         for so long as such Participating Broker-Dealer is required to deliver
         a prospectus meeting the requirements of the 1933 Act in connection
         with any resale of such Exchange Securities.

                  "Indenture" shall mean the Indenture dated as of May 1, 1994
         between the Company and National City Bank, as Trustee, as supplemented
         by the First Supplemental Indenture, dated May 10, 1995, between the
         Company and the Trustee, and the Second Supplemental Indenture, dated
         July 18, 2003, between the Company and the Trustee, as the same may be
         further amended or supplemented from time to time in accordance with
         the terms thereof.

                  "Interest Accrual Date" means July 18, 2003.

                  "Initial Purchasers" shall have the meaning set forth in the
         preamble of this Agreement.

                  "Majority Holders" shall mean the Holders of a majority of the
         aggregate principal amount of Registrable Securities outstanding,
         excluding Exchange Securities referred to in clause (ii) of the
         definition of "Holders" above; provided that whenever the consent or
         approval of Holders of a specified percentage of Registrable Securities
         or Exchange Securities is required hereunder, Registrable Securities
         and Exchange Securities held by the Company or any of its affiliates
         (as such term is defined in Rule

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         405 under the 1933 Act) shall also be disregarded in determining
         whether such consent or approval was given by the Holders of such
         required percentage.

                  "NASD" shall mean the National Association of Securities
         Dealers, Inc.

                  "Notifying Broker-Dealer" shall have the meaning set forth in
         Section 3(f).

                  "Participating Broker-Dealer" shall have the meaning set forth
         in Section 3(f).

                  "Person" shall mean an individual, partnership, joint venture,
         limited liability company, corporation, trust or unincorporated
         organization, or a government or agency or political subdivision
         thereof.

                  "Private Exchange Securities" shall have the meaning set forth
         in Section 2(a) hereof.

                  "Prospectus" shall mean the prospectus included in a
         Registration Statement, including any preliminary prospectus, and any
         such prospectus as amended or supplemented by any prospectus
         supplement, including a prospectus supplement with respect to the terms
         of the offering of any portion of the Registrable Securities covered by
         a Shelf Registration Statement, and by all other amendments and
         supplements to a prospectus, including post-effective amendments, and
         in each case including all material incorporated or deemed to be
         incorporated by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
         preamble to this Agreement.

                  "Registrable Securities" shall mean the Securities; provided,
         however, that any Securities shall cease to be Registrable Securities
         when (i) a Registration Statement with respect to such Securities shall
         have been declared effective under the 1933 Act and such Securities
         shall have been disposed of pursuant to such Registration Statement,
         (ii) such Securities shall have been sold to the public pursuant to
         Rule 144 (or any similar provision then in force, but not Rule 144A)
         under the 1933 Act, (iii) such Securities shall have ceased to be
         outstanding, (iv) the Exchange Offer Registration Statement has been
         declared effective covering the exchange of all Securities for Exchange
         Securities and the Exchange Offer has been consummated unless, in the
         case of any Exchange Securities, such Exchange Securities are held by
         Participating Broker-Dealers or otherwise are not freely tradable
         without any limitations or restrictions under the 1933 Act (in which
         case such Exchange Securities will be deemed to be Registrable
         Securities until such time as such Exchange Securities are sold to a
         purchaser in whose hands such Exchange Securities are freely tradeable
         without any limitations or restrictions under the 1933 Act) or (v) such
         Securities have been exchanged for Private Exchange Securities pursuant
         to this Agreement (in which case such Private Exchange Securities will
         be deemed to be Registrable Securities until such time as such Private
         Exchange Securities are sold to a purchaser in whose hands such Private
         Exchange Securities are freely tradeable without any limitations or
         restrictions under the 1933 Act).

                  "Registration Default" shall have the meaning set forth in
         Section 2(e).

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                  "Registration Expenses" shall mean any and all expenses
         incident to performance of or compliance by the Company with this
         Agreement, including without limitation: (i) all SEC, stock exchange or
         NASD registration and filing fees, (ii) all fees and expenses incurred
         in connection with compliance with state or other securities or blue
         sky laws or real estate syndication laws and compliance with the rules
         of the NASD (including reasonable fees and disbursements of counsel for
         any underwriters or Holders in connection with qualification of any of
         the Exchange Securities or Registrable Securities under state or other
         securities or blue sky laws or real estate syndication laws and any
         filing with and review by the NASD), (iii) all expenses of any Persons
         in preparing, printing and distributing any Registration Statement, any
         Prospectus, any amendments or supplements thereto, any underwriting
         agreements, securities sales agreements, certificates representing the
         Securities, Private Exchange Securities, if any, or Exchange Securities
         and other documents relating to the performance of and compliance with
         this Agreement, (iv) all rating agency fees, (v) all fees and expenses
         incurred in connection with the listing, if any, of any of the
         Securities, Private Exchange Securities (if any) or Exchange Securities
         on any securities exchange or exchanges or on any quotation system,
         (vi) all fees and disbursements relating to the qualification of the
         Indenture under applicable securities laws, (vii) the fees and
         disbursements of counsel for the Company and the fees and expenses of
         independent public accountants for the Company or for any other Person,
         business or assets whose financial statements are included in any
         Registration Statement or Prospectus, including the expenses of any
         special audits or "cold comfort" letters required by or incident to
         such performance and compliance, (viii) the fees and expenses of a
         "qualified independent underwriter" as defined by Conduct Rule 2720 of
         the NASD (if required by the NASD rules) and the fees and disbursements
         of its counsel, (ix) the fees and expenses of the Trustee, any
         registrar, any depositary, any paying agent, any escrow agent or any
         custodian, in each case including fees and disbursements of their
         respective counsel, (x) the reasonable fees and expenses of the Initial
         Purchasers in connection with the Exchange Offer, including the
         reasonable fees and expenses of counsel to the Initial Purchasers in
         connection therewith, (xi) the reasonable fees and disbursements, if
         any, of special counsel representing the Holders of Registrable
         Securities and (xii) in the case of an underwritten offering, any fees
         and disbursements of the underwriters customarily paid by issuers or
         sellers of securities and the fees and expenses of any special experts
         retained by the Company in connection with any Registration Statement
         but excluding (except as otherwise provided herein) fees of counsel to
         the underwriters or the Holders and underwriting discounts and
         commissions and transfer taxes, if any, relating to the sale or
         disposition of Registrable Securities by a Holder.

                  "Registration Statement" shall mean any registration statement
         of the Company relating to any offering of the Exchange Securities or
         Registrable Securities pursuant to the provisions of this Agreement
         (including, without limitation, any Exchange Offer Registration
         Statement and any Shelf Registration Statement), and all amendments and
         supplements to any such Registration Statement, including
         post-effective amendments, in each case including the Prospectus
         contained therein, all exhibits thereto and all material incorporated
         or deemed to be incorporated by reference therein.

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                  "SEC" shall mean the Securities and Exchange Commission or any
         successor thereto.

                  "Securities" shall have the meaning set forth in the preamble
         to this Agreement.

                  "Shelf Registration" shall mean a registration effected
         pursuant to Section 2(b) hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
         registration statement of the Company pursuant to the provisions of
         Section 2(b) of this Agreement which covers all of the Registrable
         Securities or Private Exchange Securities (if any), as the case may be,
         on an appropriate form under Rule 415 under the 1933 Act, or any
         similar rule that may be adopted by the SEC, and all amendments and
         supplements to such registration statement, including post-effective
         amendments, in each case including the Prospectus contained therein,
         all exhibits thereto and all material incorporated or deemed to be
         incorporated by reference therein.

                  "TIA" shall mean the Trust Indenture Act of 1939, as amended
         from time to time, and the rules and regulations of the SEC promulgated
         thereunder.

                  "Trustee" shall mean the trustee with respect to the
         Securities, the Private Exchange Securities (if any) and the Exchange
         Securities under the Indenture.

         For purposes of this Agreement, (i) all references in this Agreement to
any Registration Statement, preliminary prospectus or Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the
copy filed with the SEC pursuant to its Electronic Data Gathering, Analysis and
Retrieval system; (ii) all references in this Agreement to financial statements
and schedules and other information which is "contained", "included" or "stated"
in any Registration Statement, preliminary prospectus or Prospectus (or other
references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information which is incorporated
or deemed to be incorporated by reference in such Registration Statement,
preliminary prospectus or Prospectus, as the case may be; (iii) all references
in this Agreement to amendments or supplements to any Registration Statement,
preliminary prospectus or Prospectus shall be deemed to mean and include the
filing of any document under the 1934 Act which is incorporated or deemed to be
incorporated by reference in such Registration Statement, preliminary prospectus
or Prospectus, as the case may be; (iv) all references in this Agreement to Rule
144, Rule 144A or Rule 405 under the 1933 Act, and all references to any
sections or subsections thereof or terms defined therein, shall in each case
include any successor provisions thereto; and (v) all references in this
Agreement to days (but not to business days) shall mean calendar days.

         2. Registration Under the 1933 Act.

         (a) Exchange Offer Registration. The Company shall use its reasonable
best efforts to (A) file with the SEC on or prior to the 90th day after the
Closing Time an Exchange Offer Registration Statement covering the offer by the
Company to the Holders to exchange all of the Registrable Securities for a like
aggregate principal amount of Exchange Securities, (B) cause such Exchange Offer
Registration Statement to be declared effective by the SEC no later than the

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180th day after the Closing Time, (C) cause such Registration Statement to
remain effective until the closing of the Exchange Offer and (D) consummate the
Exchange Offer no later than 30 days after the effective date of the Exchange
Offer Registration Statement. Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall as promptly as practicable commence
the Exchange Offer, it being the objective of such Exchange Offer to enable each
Holder eligible and electing to exchange Registrable Securities for Exchange
Securities (assuming that such Holder is not an affiliate of the Company within
the meaning of Rule 405 under the 1933 Act, acquires the Exchange Securities in
the ordinary course of such Holder's business and has no arrangements or
understandings with any Person to participate in the Exchange Offer for the
purpose of distributing such Exchange Securities) to trade such Exchange
Securities from and after their receipt without any limitations or restrictions
under the 1933 Act or under the securities or blue sky laws or real estate
syndication laws of the states of the United States.

         In connection with the Exchange Offer, the Company shall:

                  (i)      as promptly as practicable mail or cause to be mailed
         to each Holder a copy of the Prospectus forming part of the Exchange
         Offer Registration Statement, together with an appropriate letter of
         transmittal and related documents;

                  (ii)     keep the Exchange Offer open for not less than 20
         business days (or longer if required by applicable law) after the date
         notice thereof is mailed to the Holders and, during the Exchange Offer,
         offer to all Holders who are legally eligible to participate in the
         Exchange Offer the opportunity to exchange their Registrable Securities
         for Exchange Securities;

                  (iii)    use the services of a depositary with an address in
         the Borough of Manhattan, The City of New York for the Exchange Offer;

                  (iv)     permit Holders to withdraw tendered Registrable
         Securities at any time prior to the close of business, New York City
         time, on the last business day on which the Exchange Offer shall remain
         open, by sending to the institution specified in the Prospectus or the
         related letter of transmittal or related documents a telegram, telex,
         facsimile transmission or letter setting forth the name of such Holder,
         the principal amount of Registrable Securities delivered for exchange,
         and a statement that such Holder is withdrawing its election to have
         such Securities exchanged;

                  (v)      notify each Holder that any Registrable Security not
         tendered will remain outstanding and continue to accrue interest, but
         will not retain any rights under this Agreement (except in the case of
         the Initial Purchasers and Participating Broker-Dealers as provided
         herein); and

                  (vi)     otherwise comply in all material respects with all
         applicable laws relating to the Exchange Offer.

         If, at or prior to the consummation of the Exchange Offer, any of the
Initial Purchasers holds any Securities acquired by it and having the status of
an unsold allotment in the initial distribution, the Company shall, upon the
request of any such Initial Purchaser, simultaneously

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with the delivery of the Exchange Securities in the Exchange Offer, issue and
deliver to such Initial Purchaser in exchange for such Securities a like
principal amount of debt securities of the Company that are identical (except
that such debt securities shall be subject to transfer restrictions and shall
bear a legend relating to restrictions on ownership and transfer identical to
those applicable to the Securities as a result of the issuance thereof without
registration under the 1933 Act and shall provide for the payment of Additional
Interest) to the Exchange Securities (the "Private Exchange Securities"). The
Company shall use its reasonable best efforts to have the Private Exchange
Securities bear the same CUSIP number as the Exchange Securities and, if unable
to do so, the Company will, at such time as any Private Exchange Security ceases
to be a "restricted security" within the meaning of Rule 144 under the 1933 Act,
permit any such Private Exchange Security to be exchanged for a like principal
amount of Exchange Securities. The Company shall not have any liability under
this Agreement solely as a result of any such Private Exchange Securities not
bearing the same CUSIP number as the Exchange Securities.

         The Exchange Securities and the Private Exchange Securities (if any)
shall be issued under the Indenture, which shall be qualified under the TIA. The
Indenture shall provide that the Exchange Securities, the Private Exchange
Securities (if any) and the Securities shall vote and consent together on all
matters as a single class and shall constitute a single series of debt
securities issued under the Indenture.

         As soon as practicable after the close of the Exchange Offer, the
Company shall:

                  (i)      accept for exchange all Registrable Securities duly
         tendered and not validly withdrawn pursuant to the Exchange Offer in
         accordance with the terms of the Exchange Offer Registration Statement
         and the letter of transmittal which is an exhibit thereto;

                  (ii)     deliver, or cause to be delivered, to the Trustee for
         cancellation all Registrable Securities so accepted for exchange by the
         Company; and

                  (iii)    cause the Trustee promptly to authenticate and
         deliver Exchange Securities to each Holder of Registrable Securities so
         accepted for exchange equal in principal amount to the principal amount
         of the Registrable Securities of such Holder so accepted for exchange.

         Interest on each Exchange Security and such Private Exchange Security
(if any) will accrue from the last date on which interest was paid or duly
provided for on the Securities surrendered in exchange therefor or, if no
interest has been paid or duly provided for on such Securities, from the
Interest Accrual Date. The Exchange Offer shall not be subject to any
conditions, other than (i) that the Exchange Offer, or the making of any
exchange by a Holder, does not violate any applicable law or any applicable
interpretation of the staff of the SEC, (ii) that no action or proceeding shall
have been instituted or threatened in any court or by or before any governmental
agency with respect to the Exchange Offer which, in the Company's judgment,
would reasonably be expected to impair the ability of the Company to proceed
with the Exchange Offer, and (iii) that the Holders tender the Registrable
Securities to the Company in accordance with the Exchange Offer. Each Holder of
Registrable Securities (other than Participating Broker-Dealers) who wishes to
exchange such Registrable Securities for Exchange

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Securities in the Exchange Offer will be required to represent that (i) it is
not an affiliate (as defined in Rule 405 under the 1933 Act) of the Company,
(ii) any Exchange Securities to be received by it will be acquired in the
ordinary course of business and (iii) it has no arrangement with any Person to
participate in the distribution (within the meaning of the 1933 Act) of the
Exchange Securities, and shall be required to make such other representations as
may be reasonably necessary under applicable SEC rules, regulations or
interpretations to render the use of Form S-4 or another appropriate form under
the 1933 Act available. To the extent permitted by law, the Company shall inform
the Initial Purchasers of the names and addresses of the Holders of Securities
to whom the Exchange Offer is made and, to the extent such information is
available to the Company, the names and addresses of the beneficial owners of
such Securities, and the Initial Purchasers shall have the right to contact such
Holders and beneficial owners and otherwise facilitate the tender of Registrable
Securities in the Exchange Offer.

         (b) Shelf Registration. (i) If, because of any change in law or
applicable interpretations thereof by the staff of the SEC, the Company is not
permitted to effect the Exchange Offer as contemplated by Section 2(a) hereof,
or (ii) if for any other reason (A) the Exchange Offer Registration Statement is
not declared effective within 180 days following the Closing Time or (B) the
Exchange Offer is not consummated within 30 days after effectiveness of the
Exchange Offer Registration Statement (provided that if the Exchange Offer
Registration Statement shall be declared effective after such 180-day period or
if the Exchange Offer shall be consummated after such 30-day period, then the
Company's obligations under this clause (ii) arising from the failure of the
Exchange Offer Registration Statement to be declared effective within such
180-day period or the failure of the Exchange Offer to be consummated within
such 30-day period, respectively, shall terminate), or (iii) if any Holder
(other than an Initial Purchaser holding Securities acquired directly from the
Company) is not eligible to participate in the Exchange Offer or elects to
participate in the Exchange Offer (and validly tenders and does not withdraw its
Securities prior to the expiration of the Exchange Offer) but does not receive
Exchange Securities which are freely tradeable without any limitations or
restrictions under the 1933 Act or (iv) upon the request of any of the Initial
Purchasers within 90 days following the consummation of the Exchange Offer
(provided that, in the case of this clause (iv), such Initial Purchaser shall
hold Registrable Securities (including, without limitation, Private Exchange
Securities) that it acquired directly from the Company), the Company shall, at
its cost:

                  (A) as promptly as practicable, but no later than (a) the
         180th day after the Closing Time or (b) the 60th day after any such
         filing obligation arises, whichever is later, file with the SEC a Shelf
         Registration Statement relating to the offer and sale of the
         Registrable Securities by the Holders from time to time in accordance
         with the methods of distribution elected by the Majority Holders of
         such Registrable Securities and set forth in such Shelf Registration
         Statement;

                  (B) use its reasonable best efforts to cause such Shelf
         Registration Statement to be declared effective by the SEC as promptly
         as practicable, but in no event later than the 210th day after the
         Closing Time (or, in the case of a request by any of the Initial
         Purchasers pursuant to clause (iv) above, within 60 days after such
         request). In the event that the Company is required to file a Shelf
         Registration Statement pursuant to clause (iii) or (iv) above, the
         Company shall file and use its reasonable best efforts to have declared
         effective by the SEC both an Exchange Offer Registration Statement
         pursuant to Section

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         2(a) with respect to all Registrable Securities and a Shelf
         Registration Statement (which may be a combined Registration Statement
         with the Exchange Offer Registration Statement) with respect to offers
         and sales of Registrable Securities held by such Holder or such Initial
         Purchaser, as applicable;

                  (C) use its reasonable best efforts to keep the Shelf
         Registration Statement continuously effective, supplemented and amended
         as required, in order to permit the Prospectus forming part thereof to
         be usable by Holders for a period of two years after the latest date on
         which any Securities are originally issued by the Company (subject to
         extension pursuant to the last paragraph of Section 3) or, if earlier,
         when all of the Registrable Securities covered by such Shelf
         Registration Statement (i) have been sold pursuant to the Shelf
         Registration Statement in accordance with the intended method of
         distribution thereunder, (ii) become eligible for resale pursuant to
         Rule 144(k) under the 1933 Act or (iii) cease to be Registrable
         Securities; and

                  (D) notwithstanding any other provisions hereof, use its
         reasonable best efforts to ensure that (i) any Shelf Registration
         Statement and any amendment thereto and any Prospectus forming a part
         thereof and any supplements thereto comply in all material respects
         with the 1933 Act and the rules and regulations thereunder, (ii) any
         Shelf Registration Statement and any amendment thereto does not, when
         it becomes effective, contain an untrue statement of a material fact or
         omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading and (iii) any
         Prospectus forming part of any Shelf Registration Statement and any
         amendment or supplement to such Prospectus does not include an untrue
         statement of a material fact or omit to state a material fact necessary
         in order to make the statements therein, in the light of the
         circumstances under which they were made, not misleading.

         The Company shall not permit any securities other than Registrable
Securities to be included in the Shelf Registration Statement without the prior
written consent of Banc of America. The Company further agrees, if necessary, to
supplement or amend the Shelf Registration Statement if required by Section 3(b)
below, to use its reasonable best efforts to cause any such amendment to become
effective and such Shelf Registration Statement to become usable as soon as
practicable thereafter and to furnish to the Holders of Registrable Securities
copies of any such supplement or amendment promptly after its being used or
filed with the SEC.

         (c) Expenses. The Company shall pay all Registration Expenses in
connection with the registration pursuant to Section 2(a) and 2(b) and, in the
case of any Shelf Registration Statement, will reimburse the Holders or the
Initial Purchasers for the reasonable fees and disbursements of one counsel (in
addition to any local counsel) designated in writing by the Majority Holders
(or, if a Shelf Registration Statement is filed solely pursuant to clause (iv)
of the first paragraph of Section 2(b), designated by the Initial Purchasers) to
act as counsel for the Holders of the Registrable Securities in connection
therewith. Each Holder shall pay all fees and disbursements of its counsel other
than as set forth in the preceding sentence or in the definition of Registration
Expenses and all underwriting discounts and commissions and transfer taxes, if
any, relating to the sale or disposition of such Holder's Registrable Securities
pursuant to a Shelf Registration Statement.

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         (d) Effective Registration Statement.

                  (i)      The Company shall be deemed not to have used its
         reasonable best efforts to cause the Exchange Offer Registration
         Statement or any Shelf Registration Statement, as the case may be, to
         become, or to remain, effective during the requisite periods set forth
         herein if the Company voluntarily takes any action that could
         reasonably be expected to result in any such Registration Statement not
         being declared effective or remaining effective or in the Holders of
         Registrable Securities (including, under the circumstances contemplated
         by Section 3(f) hereof, Exchange Securities) covered thereby not being
         able to exchange or offer and sell such Registrable Securities during
         that period unless (A) such action is required by applicable law or (B)
         such action is taken by the Company in good faith and for valid
         business reasons (but not including avoidance of the Company's
         obligations hereunder), including the acquisition or divestiture of
         assets or a material corporate transaction or event so long as the
         Company promptly complies with the notification requirements of Section
         3(k) hereof, if applicable. Nothing in this paragraph shall prevent the
         accrual of Additional Interest on any Securities or Exchange
         Securities.

                  (ii)     An Exchange Offer Registration Statement pursuant to
         Section 2(a) hereof or a Shelf Registration Statement pursuant to
         Section 2(b) hereof shall not be deemed to have become effective unless
         it has been declared effective by the SEC; provided, however, that if,
         after it has been declared effective, the offering of Registrable
         Securities pursuant to a Registration Statement is interfered with by
         any stop order, injunction or other order or requirement of the SEC or
         any other governmental agency or court, such Registration Statement
         shall be deemed not to have been effective during the period of such
         interference until the offering of Registrable Securities pursuant to
         such Registration Statement may legally resume.

         (e) Increase in Interest Rate. In the event that:

                  (i)      the Exchange Offer Registration Statement is not
         filed with the SEC on or prior to the 90th day following the Closing
         Time, or

                  (ii)     the Exchange Offer Registration Statement is not
         declared effective by the SEC on or prior to the 180th day following
         the Closing Time, or

                  (iii)    the Exchange Offer is not consummated on or prior to
         the 30th day following the effective date of the Exchange Offer
         Registration Statement, or

                  (iv)     if required, a Shelf Registration Statement is not
         filed with the SEC on or prior to (A) the 180th day following the
         Closing Time or (B) the 60th day after the filing obligation arises,
         whichever is later, or

                  (v)      if required, a Shelf Registration Statement is not
         declared effective on or prior to the 210th day following the Closing
         Time (or, if a Shelf Registration Statement is required to be filed
         upon the request of any Initial Purchaser, within 60 days after such
         filing), or

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                  (vi)     a Shelf Registration Statement is declared effective
         by the SEC but such Shelf Registration Statement ceases to be effective
         or such Shelf Registration Statement or the Prospectus included therein
         ceases to be usable in connection with resales of Registrable
         Securities for any reason and the aggregate number of days in any
         consecutive 365-day period for which the Shelf Registration Statement
         or such Prospectus shall not be effective or usable exceeds 45 days, or

                  (vii)    the Exchange Offer Registration Statement is declared
         effective by the SEC but, if the Exchange Offer Registration Statement
         is being used in connection with the resale of Exchange Securities as
         contemplated by Section 3(f)(B) of this Agreement, the Exchange Offer
         Registration Statement ceases to be effective or the Exchange Offer
         Registration Statement or the Prospectus included therein ceases to be
         usable in connection with resales of Exchange Securities for any reason
         during the 180-day period referred to in Section 3(f)(B) of this
         Agreement (as such period may be extended pursuant to the last
         paragraph of Section 3 of this Agreement),

(each of the events referred to in clauses (i) through (vii) above being
hereinafter called a "Registration Default"), the per annum interest rate borne
by the Registrable Securities shall be increased ("Additional Interest") by
one-quarter of one percent (0.25%) per annum immediately following such 90-day
period in the case of clause (i) above, immediately following such 180-day
period in the case of clause (ii) above, immediately following such 30-day
period in the case of clause (iii) above, immediately following any such 180-day
period or 60-day period, whichever ends later, in the case of clause (iv) above,
immediately following any such 210-day period or 60-day period, whichever ends
first, in the case of clause (v) above, immediately following the 45th day in
any consecutive 365-day period that a Shelf Registration Statement shall not be
effective or a Shelf Registration Statement or the Prospectus included therein
shall not be usable as contemplated by clause (vi) above, or immediately
following the day that the Exchange Offer Registration Statement shall not be
effective or the Exchange Offer Registration Statement or the Prospectus
included therein shall not be usable as contemplated by clause (vii) above,
which rate will be increased by an additional one-quarter of one percent (0.25%)
per annum immediately following each 90-day period that any Additional Interest
continues to accrue under any circumstances; provided that the aggregate
increase in such annual interest rate may in no event exceed one-half of one
percent (0.50%) per annum. Upon the filing of the Exchange Offer Registration
Statement after the 90-day period described in clause (i) above, the
effectiveness of the Exchange Offer Registration Statement after the 180-day
period described in clause (ii) above, the consummation of the Exchange Offer
after the 30-day period described in clause (iii) above, the filing of the Shelf
Registration Statement after the 180-day period or 60-day period, as the case
may be, described in clause (iv) above, the effectiveness of a Shelf
Registration Statement after the 210-day period or 60-day period, as the case
may be, described in clause (v) above, or the Shelf Registration Statement once
again being effective or the Shelf Registration Statement and the Prospectus
included therein becoming usable in connection with resales of Registrable
Securities, as the case may be, in the case of clause (vi) above, or the
Exchange Offer Registration Statement once again becoming effective or the
Exchange Offer Registration Statement and the Prospectus included therein
becoming usable in connection with resales of Exchange Securities, as the case
may be, in the case of clause (vii) thereof, the interest rate borne by the
Securities from the date of such filing, effectiveness, consummation or
resumption of effectiveness or usability, as the case may be, shall be reduced
to the original

                                       11

<PAGE>

interest rate so long as no other Registration Default shall have occurred and
shall be continuing at such time and the Company is otherwise in compliance with
this paragraph; provided, however, that, if after any such reduction in interest
rate, one or more Registration Defaults shall again occur, the interest rate
shall again be increased pursuant to the foregoing provisions.

         The Company shall notify the Trustee within three business days after
each and every date on which an event occurs in respect of which Additional
Interest is required to be paid (an "Event Date"). Additional Interest shall be
paid by depositing with the Trustee, in trust, for the benefit of the Holders of
Registrable Securities, on or before the applicable semi-annual interest payment
date, immediately available funds in sums sufficient to pay the Additional
Interest then due. The Additional Interest due shall be payable on each interest
payment date to the record Holder of Securities entitled to receive the interest
payment to be paid on such date as set forth in the Indenture. Each obligation
to pay Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date.

         Anything herein to the contrary notwithstanding, any Holder who was, at
the time the Exchange Offer was pending and consummated, eligible to exchange,
and did not validly tender, or withdrew, its Securities for Exchange Securities
in the Exchange Offer will not be entitled to receive any Additional Interest.
For purposes of clarity, it is hereby acknowledged and agreed that, under
current interpretations of law by the SEC, Initial Purchasers holding unsold
allotments of Securities acquired from the Company are not eligible to
participate in the Exchange Offer.

         (f) Specific Enforcement. Without limiting the remedies available to
the Initial Purchasers and the Holders, the Company acknowledges that any
failure by the Company to comply with its obligations under Sections 2(a)
through 2(d) hereof may result in material irreparable injury to the Initial
Purchasers, the Holders or the Participating Broker-Dealers for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial
Purchasers, any Holder and any Participating Broker-Dealer may obtain such
relief as may be required to specifically enforce the Company's obligations
under Sections 2(a) through 2(d) hereof.

         3. Registration Procedures. In connection with the obligations of the
Company with respect to the Registration Statements pursuant to Sections 2(a)
and 2(b) hereof, the Company shall:

                  (a) prepare and file with the SEC a Registration Statement or,
         if required, Registration Statements, within the time periods specified
         in Section 2, on the appropriate form under the 1933 Act, which form
         (i) shall be selected by the Company, (ii) shall, in the case of a
         Shelf Registration Statement, be available for the sale of the
         Registrable Securities by the selling Holders thereof and (iii) shall
         comply as to form in all material respects with the requirements of the
         applicable form and include or incorporate by reference all financial
         statements required by the SEC to be filed therewith, and use its
         reasonable best efforts to cause such Registration Statement to become
         effective and remain effective in accordance with Section 2 hereof;

                                       12

<PAGE>

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary under applicable law to keep such Registration Statement
         effective for the applicable period; cause each Prospectus to be
         supplemented by any required prospectus supplement, and as so
         supplemented to be filed pursuant to Rule 424 under the 1933 Act; and
         comply with the provisions of the 1933 Act and the 1934 Act with
         respect to the disposition of all Securities covered by each
         Registration Statement during the applicable period in accordance with
         the intended method or methods of distribution by the selling Holders
         thereof;

                  (c) in the case of a Shelf Registration, (i) notify each
         Holder of Registrable Securities, at least ten business days prior to
         filing, that a Shelf Registration Statement with respect to the
         Registrable Securities is being filed and advising such Holders that
         the distribution of Registrable Securities will be made in accordance
         with the method elected by the Majority Holders; (ii) furnish to each
         Holder of Registrable Securities, to counsel for the Initial
         Purchasers, to counsel for the Holders and to each underwriter of an
         underwritten offering of Registrable Securities, if any, without
         charge, as many copies of each Prospectus, including each preliminary
         Prospectus, and any amendment or supplement thereto and such other
         documents as such Holder, counsel or underwriter may reasonably
         request, including financial statements and schedules and, if such
         Holder, counsel or underwriter so requests, all exhibits (including
         those incorporated by reference) in order to facilitate the public sale
         or other disposition of the Registrable Securities; and (iii) subject
         to the penultimate paragraph of this Section 3, the Company hereby
         consents to the use of the Prospectus, including each preliminary
         Prospectus, or any amendment or supplement thereto by each of the
         Holders and underwriters of Registrable Securities in connection with
         the offering and sale of the Registrable Securities covered by any
         Prospectus or any amendment or supplement thereto;

                  (d) use its reasonable best efforts to register or qualify the
         Registrable Securities under all applicable state securities or "blue
         sky" laws of such jurisdictions as any Holder of Registrable Securities
         covered by a Registration Statement and each underwriter of an
         underwritten offering of Registrable Securities shall reasonably
         request, to cooperate with the Holders and the underwriters of any
         Registrable Securities in connection with any filings required to be
         made with the NASD, to keep each such registration or qualification
         effective during the period such Registration Statement is required to
         be effective and do any and all other acts and things which may be
         reasonably necessary or advisable to enable such Holder to consummate
         the disposition in each such jurisdiction of such Registrable
         Securities owned by such Holder; provided, however, that the Company
         shall not be required to (i) qualify as a foreign corporation or as a
         dealer in securities in any jurisdiction where it would not otherwise
         be required to qualify but for this Section 3(d) or (ii) take any
         action which would subject it to general service of process or taxation
         in any such jurisdiction if it is not then so subject;

                  (e) in the case of a Shelf Registration, notify each Holder of
         Registrable Securities and counsel for such Holders promptly and, if
         requested by such Holder or counsel, confirm such advice in writing
         promptly (i) when a Registration Statement has become effective and
         when any post-effective amendments and supplements thereto

                                  13
<PAGE>

         become effective, (ii) of any request by the SEC or any state
         securities authority for post-effective amendments or supplements to a
         Registration Statement or Prospectus or for additional information
         after a Registration Statement has become effective, (iii) of the
         issuance by the SEC or any state securities authority of any stop order
         suspending the effectiveness of a Registration Statement or the
         initiation of any proceedings for that purpose, (iv) if between the
         effective date of a Registration Statement and the closing of any sale
         of Registrable Securities covered thereby the representations and
         warranties of the Company contained in any underwriting agreement,
         securities sales agreement or other similar agreement, if any, relating
         to such offering cease to be true and correct, (v) of the receipt by
         the Company of any notification with respect to the suspension of the
         qualification of the Registrable Securities for sale in any
         jurisdiction or the initiation or threatening of any proceeding for
         such purpose, (vi) of the happening of any event or the discovery of
         any facts during the period a Shelf Registration Statement is effective
         which is contemplated in Section 2(d)(i)(A) or 2(d)(i)(B) or which
         makes any statement made in such Shelf Registration Statement or the
         related Prospectus untrue in any material respect or which constitutes
         an omission to state a material fact in such Shelf Registration
         Statement or Prospectus and (vii) of any determination by the Company
         that a post-effective amendment to a Registration Statement would be
         appropriate. Without limitation to any other provisions of this
         Agreement, the Company agrees that this Section 3(e) shall also be
         applicable, mutatis mutandis, with respect to the Exchange Offer
         Registration Statement and the Prospectus included therein to the
         extent that such Prospectus is being used by Participating
         Broker-Dealers as contemplated by Section 3(f);

                  (f) (A) in the case of an Exchange Offer, (i) include in the
         Exchange Offer Registration Statement (x) a "Plan of Distribution"
         section substantially in the form set forth in Annex B hereto or other
         such form as is reasonably acceptable to Banc of America covering the
         use of the Prospectus included in the Exchange Offer Registration
         Statement by broker-dealers who have exchanged their Registrable
         Securities for Exchange Securities for the resale of such Exchange
         Securities and (y) a statement to the effect that any such
         broker-dealers who wish to use the related Prospectus in connection
         with the resale of Exchange Securities acquired as a result of
         market-making or other trading activities will be required to notify
         the Company to that effect, together with instructions for giving such
         notice (which instructions shall include a provision for giving such
         notice by checking a box or making another appropriate notation on the
         related letter of transmittal) (each such broker-dealer who gives
         notice to the Company as aforesaid being hereinafter called a
         "Notifying Broker-Dealer"), (ii) furnish to each Notifying
         Broker-Dealer who desires to participate in the Exchange Offer, without
         charge, as many copies of each Prospectus included in the Exchange
         Offer Registration Statement, including any preliminary prospectus, and
         any amendment or supplement thereto, as such broker-dealer may
         reasonably request, (iii) include in the Exchange Offer Registration
         Statement a statement that any broker-dealer who holds Registrable
         Securities acquired for its own account as a result of market-making
         activities or other trading activities (a "Participating
         Broker-Dealer"), and who receives Exchange Securities for Registrable
         Securities pursuant to the Exchange Offer, may be a statutory
         underwriter and must deliver a prospectus meeting the requirements of
         the 1933 Act in connection with any resale of such Exchange Securities,
         (iv) subject to the penultimate paragraph of this

                                       14
<PAGE>

         Section 3, the Company hereby consents to the use of the Prospectus
         forming part of the Exchange Offer Registration Statement or any
         amendment or supplement thereto by any Notifying Broker-Dealer in
         connection with the sale or transfer of Exchange Securities, and (v)
         include in the transmittal letter or similar documentation to be
         executed by an exchange offeree in order to participate in the Exchange
         Offer the following provision:

                  "If the undersigned is not a broker-dealer, the undersigned
         represents that it is not engaged in, and does not intend to engage in,
         a distribution of Exchange Securities. If the undersigned is a
         broker-dealer that will receive Exchange Securities for its own account
         in exchange for Registrable Securities, it represents that the
         Registrable Securities to be exchanged for Exchange Securities were
         acquired by it as a result of market-making activities or other trading
         activities and acknowledges that it will deliver a prospectus meeting
         the requirements of the 1933 Act in connection with any resale of such
         Exchange Securities pursuant to the Exchange Offer; however, by so
         acknowledging and by delivering a prospectus, the undersigned will not
         be deemed to admit that it is an "underwriter" within the meaning of
         the 1933 Act;"

                  (B)      to the extent any Notifying Broker-Dealer
         participates in the Exchange Offer, (i) the Company shall use its
         reasonable best efforts to maintain the effectiveness of the Exchange
         Offer Registration Statement for a period of 180 days (subject to
         extension pursuant to the last paragraph of this Section 3) following
         the last date on which exchanges are accepted pursuant to the Exchange
         Offer, and (ii) the Company will comply, insofar as relates to the
         Exchange Offer Registration Statement, the Prospectus included therein
         and the offering and sale of Exchange Securities pursuant thereto, with
         its obligations under Section 2(b)(D), the last paragraph of Section
         2(b), Section 3(c), 3(d), 3(e), 3(i), 3(j), 3(k), 3(o) and 3(p), and
         the last two paragraphs of this Section 3 as if all references therein
         to a Shelf Registration Statement, the Prospectus included therein and
         the Holders of Registrable Securities referred, mutatis mutandis, to
         the Exchange Offer Registration Statement, the Prospectus included
         therein and the applicable Notifying Broker-Dealers and, for purposes
         of this Section 3(f), all references in any such paragraphs or sections
         to the "Majority Holders" shall be deemed to mean, solely insofar as
         relates to this Section 3(f), the Notifying Broker-Dealers who are the
         Holders of the majority in aggregate principal amount of the Exchange
         Securities which are Registrable Securities;

                  (C)      the Company shall not be required to amend or
         supplement the Prospectus contained in the Exchange Offer Registration
         Statement as would otherwise be contemplated by Section 3(b) or 3(k)
         hereof, or take any other action as a result of this Section 3(f), for
         a period exceeding 180 days (subject to extension pursuant to the last
         paragraph of this Section 3) after the last date on which exchanges are
         accepted pursuant to the Exchange Offer and Notifying Broker-Dealers
         shall not be authorized by the Company to, and shall not, deliver such
         Prospectus after such period in connection with resales contemplated by
         this Section 3; and

                  (D)      in the case of any Exchange Offer Registration
         Statement, the Company agrees to deliver to the Initial Purchasers on
         behalf of the Participating Broker-Dealer upon the effectiveness of the
         Exchange Offer Registration Statement (i) an opinion of

                                       15
<PAGE>

         counsel or opinions of counsel reasonably satisfactory to the Initial
         Purchasers, (ii) officers' certificates substantially in the form
         customarily delivered in a public offering of debt securities and (iii)
         a comfort letter or comfort letters in customary form to the extent
         permitted by Statement on Auditing Standards No. 100 of the American
         Institute of Certified Public Accountants (or if such a comfort letter
         is not permitted, an agreed upon procedures letter in customary form)
         from the Company's independent certified public accountants (and, if
         necessary, any other independent certified public accountants of any
         subsidiary of the Company or of any business acquired by the Company
         for which financial statements are, or are required to be, included in
         the Registration Statement) substantially equivalent in scope and
         coverage as the comfort letter or comfort letters delivered to the
         Initial Purchasers in connection with the initial sale of the
         Securities to the Initial Purchasers;

                  (g) (i) in the case of an Exchange Offer, furnish counsel for
         the Initial Purchasers and (ii) in the case of a Shelf Registration,
         furnish counsel for the Holders of Registrable Securities and counsel
         for any underwriters of Registrable Securities copies of any request by
         the SEC or any state securities authority for amendments or supplements
         to a Registration Statement or Prospectus or for additional
         information;

                  (h) use its reasonable best effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement as
         soon as practicable and provide immediate notice to each Holder of the
         withdrawal of any such order;

                  (i) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Securities, without charge, at least one
         conformed copy of each Registration Statement and any post-effective
         amendments thereto (without documents incorporated or deemed to be
         incorporated therein by reference or exhibits thereto, unless
         requested), if such documents are not available via the SEC EDGAR
         database;

                  (j) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Securities to facilitate the timely
         preparation and delivery of certificates representing Registrable
         Securities to be sold and not bearing any restrictive legends; and
         cause such Registrable Securities to be in such denominations
         (consistent with the provisions of the Indenture) and in a form
         eligible for deposit with the Depositary and registered in such names
         as the selling Holders or the underwriters, if any, may reasonably
         request in writing at least one business day prior to the closing of
         any sale of Registrable Securities;

                  (k) in the case of a Shelf Registration, upon the occurrence
         of any event or the discovery of any facts as contemplated by Section
         3(e)(vi) hereof, use its reasonable best efforts to prepare a
         supplement or post-effective amendment to a Registration Statement or
         the related Prospectus or any document incorporated or deemed to be
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of the Registrable
         Securities, such Prospectus will not contain at the time of such
         delivery any untrue statement of a material fact or omit to state a
         material fact necessary in order to make the statements therein, in
         light of the circumstances under which they were made, not misleading.
         The Company agrees to notify each Holder to

                                       16
<PAGE>

         suspend use of the Prospectus as promptly as practicable after the
         occurrence of such an event, and each Holder hereby agrees to suspend
         use of the Prospectus until the Company has amended or supplemented the
         Prospectus to correct such misstatement or omission. At such time as
         such public disclosure is otherwise made or the Company determines that
         such disclosure is not necessary, in each case to correct any
         misstatement of a material fact or to include any omitted material
         fact, the Company agrees promptly to notify each Holder of such
         determination and to furnish each Holder such number of copies of the
         Prospectus, as amended or supplemented, as such Holder may reasonably
         request;

                  (l) obtain CUSIP numbers for all Exchange Securities or
         Registrable Securities, as the case may be, not later than the
         effective date of a Registration Statement, and provide the Trustee
         with printed or word-processed certificates for the Exchange Securities
         or Registrable Securities, as the case may be, in a form eligible for
         deposit with the Depositary;

                  (m) (i) cause the Indenture to be qualified under the TIA in
         connection with the registration of the Exchange Securities or
         Registrable Securities, as the case may be, (ii) cooperate with the
         Trustee and the Holders to effect such changes, if any, to the
         Indenture as may be required for the Indenture to be so qualified in
         accordance with the terms of the TIA and (iii) execute, and use its
         best efforts to cause the Trustee to execute, all documents as may be
         required to effect such changes, if any, and all other forms and
         documents required to be filed with the SEC to enable the Indenture to
         be so qualified in a timely manner;

                  (n) in the case of a Shelf Registration, the holders of a
         majority in principal amount of the Registrable Securities registered
         pursuant to such Shelf Registration Statement shall have the right to
         direct the Company to effect not more than one underwritten
         registration and, in connection with such underwritten registration,
         the Company shall enter into agreements (including underwriting
         agreements or similar agreements) and take all other customary and
         appropriate actions (including those reasonably requested by the
         holders of a majority in principal amount of the Registrable Securities
         being sold) in order to expedite or facilitate the disposition of such
         Registrable Securities and in such connection, in a manner that is
         reasonable and customary:

                           (i)      make such representations and warranties to
                  the Holders of such Registrable Securities and the
                  underwriters, in form, substance and scope as are customarily
                  made by issuers to underwriters in similar underwritten
                  offerings as may be reasonably requested by such Holders and
                  underwriters;

                           (ii)     obtain opinions of counsel to the Company
                  (which counsel and opinions (in form, scope and substance)
                  shall be reasonably satisfactory to the managing underwriters,
                  and the Holders of a majority in principal amount of the
                  Registrable Securities being sold) addressed to each selling
                  Holder and the underwriters, covering the matters customarily
                  covered in opinions requested in sales of securities or
                  underwritten offerings and such other matters as may be
                  reasonably requested by such Holders and underwriters;

                                       17
<PAGE>

                           (iii)    obtain "cold comfort" letters and updates
                  thereof with respect to such Shelf Registration Statement and
                  the Prospectus included therein, all amendments and
                  supplements thereto and all documents incorporated or deemed
                  to be incorporated by reference therein from the Company's
                  independent certified public accountants and from the
                  independent certified public accountants for any other Person
                  or any business or assets whose financial statements are
                  included or incorporated by reference in the Shelf
                  Registration Statement, each addressed to the underwriters,
                  and use reasonable best efforts to have such letters addressed
                  to the selling Holders of Registrable Securities, such letters
                  to be in customary form and covering matters of the type
                  customarily covered in "cold comfort" letters to underwriters
                  in connection with similar underwritten offerings and such
                  letters to be delivered at the time of the pricing of such
                  underwritten registration with an update to such letter to be
                  delivered at the time of closing of such underwritten
                  registration;

                           (iv)     if an underwriting agreement or other
                  similar agreement is entered into, cause the same to set forth
                  indemnification and contribution provisions and procedures
                  substantially equivalent to the indemnification and
                  contribution provisions and procedures set forth in Section 5
                  hereof with respect to the underwriters and all other parties
                  to be indemnified pursuant to Section 5 hereof or such other
                  indemnification and contribution as shall be satisfactory to
                  the Company, the applicable underwriters and the Holders of
                  the majority in principal amount of the Registrable Securities
                  being sold; and

                           (v)      deliver such other documents and
                  certificates as may be reasonably requested and as are
                  customarily delivered in similar offerings.

         The documents referred to in Sections 3(n)(ii) and 3(n)(v) shall be
         delivered at the closing under any underwriting or similar agreement as
         and to the extent required thereunder. In the case of any such
         underwritten offering, the Company shall provide written notice to the
         Holders of all Registrable Securities of such underwritten offering at
         least 30 days prior to the filing of a prospectus supplement for such
         underwritten offering. Such notice shall (x) offer each such Holder the
         right to participate in such underwritten offering, (y) specify a date,
         which shall be no earlier than 15 days following the date of such
         notice, by which such Holder must inform the Company of its intent to
         participate in such underwritten offering and (z) include the
         instructions such Holder must follow in order to participate in such
         underwritten offering;

                  (o) in the case of a Shelf Registration, make available for
         inspection by a representative of the Holders of the Registrable
         Securities and any underwriters participating in any disposition
         pursuant to a Shelf Registration Statement and any counsel or
         accountant retained by such Holders or underwriters, all financial
         statements and other records, documents and properties of the Company
         reasonably requested by any such Persons, and cause the respective
         officers, directors, employees, and any other agents of the Company to
         supply all information reasonably requested by any such Persons in
         connection with a Shelf Registration Statement;

                                       18
<PAGE>

                  (p) (i) in the case of an Exchange Offer, a reasonable time
         prior to the filing of any Exchange Offer Registration Statement, any
         Prospectus forming a part thereof, any amendment to an Exchange Offer
         Registration Statement or amendment or supplement to such Prospectus,
         provide copies of such documents to the Initial Purchasers, and make
         such changes in any such documents prior to the filing thereof as the
         Initial Purchasers or their counsel may reasonably request; (ii) in the
         case of a Shelf Registration, a reasonable time prior to filing any
         Shelf Registration Statement, any Prospectus forming a part thereof,
         any amendment to such Shelf Registration Statement or amendment or
         supplement to such Prospectus, provide copies of such document to the
         Holders of Registrable Securities, to the Initial Purchasers, to the
         underwriter or underwriters of an underwritten offering of Registrable
         Securities, and to counsel for any such Holders, Initial Purchasers or
         underwriters, and make such changes in any such document prior to the
         filing thereof as the Holders of Registrable Securities, the Initial
         Purchasers, any such underwriter or underwriters or any of their
         respective counsel may reasonably request; and (iii) cause the
         representatives of the Company to be available for discussion of such
         documents as shall be reasonably requested by the Holders of
         Registrable Securities, the Initial Purchasers on behalf of such
         Holders or any underwriter, and shall not at any time make any filing
         of any such document of which such Holders, the Initial Purchasers on
         behalf of such Holders, their counsel or any underwriter shall not have
         previously been advised and furnished a copy or to which such Holders,
         the Initial Purchasers on behalf of such Holders, their counsel or any
         underwriter shall reasonably object within a reasonable time period;

                  (q) in the case of a Shelf Registration, use commercially
         reasonable best efforts to cause the Registrable Securities to be rated
         with the appropriate rating agencies, if so requested by the Majority
         Holders of Registrable Securities or by the underwriter or underwriters
         of an underwritten offering, unless the Registrable Securities are
         already so rated;

                  (r) otherwise use its reasonable best efforts to comply with
         all applicable rules and regulations of the SEC and, with respect to
         each Registration Statement and each post-effective amendment, if any,
         thereto and each filing by the Company of an Annual Report on Form
         10-K, make available to its security holders, as soon as reasonably
         practicable, an earnings statement covering at least twelve months
         which shall satisfy the provisions of Section 11(a) of the 1933 Act and
         Rule 158 thereunder;

                  (s) cooperate and assist in any filings required to be made
         with the NASD and in the performance of any due diligence investigation
         by any underwriter and its counsel;

                  (t) in the case of a Shelf Registration, a reasonable time
         prior to the filing of any Registration Statement, any Prospectus, any
         amendment to a Registration Statement or amendment or supplement to a
         Prospectus or any document which is to be incorporated by reference
         into a Registration Statement or a Prospectus after initial filing of a
         Registration Statement, provide copies of such document to the Initial
         Purchasers on behalf of such Holders; and make representatives of the
         Company as shall be reasonably requested by the Holders of Registrable
         Securities, or the Initial Purchasers on behalf of such Holders,
         available for discussion of such document; and

                                       19
<PAGE>

                  (u) in the case of a Shelf Registration, use its reasonable
         best efforts to cause all Registrable Securities to be listed on any
         securities exchange on which similar debt securities issued by the
         Company are then listed if requested by the Majority Holders or by the
         underwriter or underwriters of an underwritten offering of Registrable
         Securities, if any.

         In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in the Shelf Registration) require each
Holder of Registrable Securities to furnish to the Company such information
regarding such Holder and the proposed distribution by such Holder of such
Registrable Securities as the Company may from time to time reasonably request
in writing and require such Holder to agree in writing to be bound by all
provisions of this Agreement applicable to such Holder.

         In the case of a Shelf Registration Statement, each Holder agrees and,
in the event that any Participating Broker-Dealer is using the Prospectus
included in the Exchange Offer Registration Statement in connection with the
sale of Exchange Securities pursuant to Section 3(f), each such Participating
Broker-Dealer agrees that, upon receipt of any notice from the Company of the
happening of any event or the discovery of any facts of the kind described in
Section 3(e)(ii), 3(e)(iii) or 3(e)(v) through 3(e)(vii) hereof, such Holder or
Participating Broker-Dealer, as the case may be, will forthwith discontinue
disposition of Registrable Securities pursuant to a Registration Statement until
receipt by such Holder or Participating Broker-Dealer, as the case may be, of
(i) the copies of the supplemented or amended Prospectus contemplated by Section
3(k) hereof or (ii) written notice from the Company that the Shelf Registration
Statement or the Exchange Offer Registration Statement, respectively, are once
again effective or that no supplement or amendment is required. If so directed
by the Company, such Holder or Participating Broker-Dealer, as the case may be,
will deliver to the Company (at the Company's expense) all copies in its
possession, other than permanent file copies then in its possession, of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice. Nothing in this paragraph shall prevent the accrual of
Additional Interest on any Securities or Exchange Securities.

         If the Company shall give any such notice to suspend the disposition of
Registrable Securities pursuant to the immediately preceding paragraph, the
Company shall be deemed to have used its reasonable best efforts to keep the
Shelf Registration Statement or, in the case of Section 3(f), the Exchange Offer
Registration Statement, as the case may be, effective during such period of
suspension; provided that (i) such period of suspension shall not exceed the
time periods provided in Section 2(e)(vii) hereof and (ii) the Company shall use
its reasonable best efforts to file and have declared effective (if an
amendment) as soon as practicable thereafter an amendment or supplement to the
Shelf Registration Statement or the Exchange Offer Registration Statement or
both, as the case may be, or the Prospectus included therein and shall extend
the period during which the Shelf Registration Statement or the Exchange Offer
Registration Statement or both, as the case may be, shall be maintained
effective pursuant to this Agreement (and, if applicable, the period during
which Participating Broker-Dealers may use the Prospectus included in the
Exchange Offer Registration Statement pursuant to Section 3(f) hereof) by the
number of days during the period from and including the date of the giving of
such notice to and including the earlier of the date when the Holders or
Participating Broker-Dealers, respectively, shall have received copies of the
supplemented or amended Prospectus

                                       20
<PAGE>

necessary to resume such dispositions and the effective date of written notice
from the Company to the Holders or Participating Broker-Dealers, respectively,
that the Shelf Registration Statement or the Exchange Offer Registration
Statement, respectively, are once again effective or that no supplement or
amendment is required.

         4. Underwritten Registrations. In the event that the Company fails to
effect the Exchange Offer or file any Shelf Registration Statement and maintain
the effectiveness of any Shelf Registration Statement as provided herein, the
Company shall not file any Registration Statement with respect to any securities
(within the meaning of Section 2(l) of the 1933 Act) of the Company other than
Registrable Securities.

         If any of the Registrable Securities covered by any Shelf Registration
are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Majority Holders of such Registrable Securities included in such
offering, subject to the consent of the Company, which consent shall not be
unreasonably withheld.

         No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

         5. Indemnification and Contribution.

         (a) The Company agrees to indemnify and hold harmless each Initial
Purchaser, each Holder, each Participating Broker-Dealer, each underwriter who
participates in an offering of Registrable Securities (each, an "Underwriter")
and each Person, if any, who controls any Initial Purchaser, Holder,
Participating Broker-Dealer or Underwriter within the meaning of either Section
15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all
losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) caused by any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment thereto) pursuant to which Exchange Securities or
Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, except insofar as
such losses, claims, damages or liabilities are caused by any such untrue
statement or omission or alleged untrue statement or omission based upon written
information furnished to the Company by any Initial Purchaser, Holder,
Participating Broker-Dealer or Underwriter with respect to such Initial
Purchaser, Holder, Participating Broker-Dealer or Underwriter, as the case may
be, expressly for use in the Registration Statement (or any amendment thereto)
or the Prospectus (or any amendment or supplement thereto).

         (b) Each Holder, each Initial Purchaser, each Participating
Broker-Dealer and each Underwriter, severally but not jointly, agrees to
indemnify and hold harmless the Company, each

                                       21
<PAGE>

director of the Company, each officer of the Company who signs the Shelf
Registration Statement, each other Initial Purchaser, each other Participating
Broker-Dealer, each other Underwriter and each other selling Holder and each
Person, if any, who controls the Company, any Initial Purchaser, any
Underwriter, any Participating Broker-Dealer or any other selling Holder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act to the
same extent as the foregoing, but only with respect to information with respect
to such Holder, Initial Purchaser, Underwriter or Participating Broker-Dealer
furnished in writing to the Company by such Holder, Initial Purchaser,
Underwriter or Participating Broker-Dealer respectively, expressly for use in
the Shelf Registration Statement (or any amendment thereto) or any Prospectus
included therein (or any amendment or supplement thereto); provided, however,
that no such Holder, Initial Purchaser, Underwriter or Participating
Broker-Dealer shall be liable for any claims hereunder in excess of the amount
of net proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement.

         (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 5(a) or 5(b), such person (the "indemnified party")
shall promptly notify the person against whom such indemnity may be sought (the
"indemnifying party") in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel, (ii) the
indemnifying party does not promptly retain counsel reasonably satisfactory to
the indemnified party or (iii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and the indemnified party reasonably concludes that the
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. It is understood that the
indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties and that all such fees and expenses shall be reimbursed as they are
incurred. The indemnifying party shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by the second and third sentences of this paragraph, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of

                                       22
<PAGE>

which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless (i) such settlement
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

         (d) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in this Section 5 is
for any reason unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, liabilities, claims, damages or expenses
referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the indemnifying party or parties
on the one hand and of the indemnified party or parties on the other hand in
connection with the statements or omissions that resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations. The relative fault of such indemnifying party or
parties on the one hand and the indemnified party or parties on the other hand
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by such indemnifying party
or parties or such indemnified party or parties, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

         (e) The Company, the Holders and the Initial Purchasers agree that it
would not be just or equitable if contribution pursuant to this Section 5 were
determined by pro rata allocation (even if the Initial Purchasers were treated
as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in paragraph (d)
above. The aggregate amount of losses, liabilities, claims, damages and expenses
incurred by an indemnified party and referred to above in this Section 5 shall
be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

         Notwithstanding the provisions of this Section 5, no Initial Purchaser
or Holder, Participating Broker-Dealer or Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
Registrable Securities sold by it were offered exceeds the amount of any damages
that such Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter
has otherwise been required to pay by reason of any such untrue or alleged
untrue statement or omission or alleged omission.

         No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

         For purposes of this Section 5, each Person, if any, who controls an
Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter within the
meaning of Section 15 of the 1933

                                       23
<PAGE>

Act or Section 20 of the 1934 Act shall have the same rights to contribution as
such Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter, as
the case may be, and each director of the Company, each officer of the Company
who signed the Registration Statement and each Person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act shall have the same rights to contribution as the Company. The
respective obligations of the Initial Purchasers, Holders, Participating
Broker-Dealers and Underwriters to contribute pursuant to this Section 5 are
several in proportion to the principal amount of Securities purchased by them
and not joint.

         The indemnity and contribution provisions contained in this Section 5
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
any Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter or any
Person controlling any Initial Purchaser, Holder, Participating Broker-Dealer or
Underwriter, or by or on behalf of the Company, its officers or directors or any
Person controlling the Company, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities or Exchange Securities
pursuant to a Shelf Registration Statement.

         6. Miscellaneous.

         (a) Rule 144 and Rule 144A. For so long as the Company is subject to
the reporting requirements of Section 13 or 15 of the 1934 Act, the Company
covenants that it will file all reports required to be filed by it under Section
13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by the SEC
thereunder, that if it ceases to be so required to file such reports, it will
upon the request of any Holder or beneficial owner of Registrable Securities (i)
make publicly available such information (including, without limitation, the
information specified in Rule 144(c)(2) under the 1933 Act) as is necessary to
permit sales pursuant to Rule 144 under the 1933 Act, (ii) deliver or cause to
be delivered, promptly following a request by any Holder or beneficial owner of
Registrable Securities or any prospective purchaser or transferee designated by
such Holder or beneficial owner, such information (including, without
limitation, the information specified in Rule 144A(d)(4) under the 1933 Act) as
is necessary to permit sales pursuant to Rule 144A under the 1933 Act, and (iii)
take such further action that is reasonable in the circumstances, in each case
to the extent required from time to time to enable such Holder to sell its
Registrable Securities without registration under the 1933 Act within the
limitation of the exemptions provided by (x) Rule 144 under the 1933 Act, as
such Rule may be amended from time to time, (y) Rule 144A under the 1933 Act, as
such Rule may be amended from time to time, or (z) any similar rules or
regulations hereafter adopted by the SEC. Upon the request of any Holder or
beneficial owner of Registrable Securities, the Company will deliver to such
Holder a written statement as to whether it has complied with such requirements.

         (b) No Inconsistent Agreements. The Company has not entered into nor
will the Company on or after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not and will not in any way
conflict with and are not and will not be inconsistent with the rights granted
to the holders of any of the Company's other issued and outstanding securities
under any other agreements entered into by the Company or any of its
subsidiaries.

                                       24
<PAGE>

         (c) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
departure.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telecopier, or any courier guaranteeing overnight delivery (i)
if to a Holder or Participating Broker-Dealer (other than an Initial Purchaser),
at the most current address set forth on the records of the registrar under the
Indenture, (ii) if to an Initial Purchaser, at the most current address given by
such Initial Purchaser to the Company by means of a notice given in accordance
with the provisions of this Section 6(d), which address initially is the address
set forth in the Purchase Agreement; (iii) if to the Company, initially at the
address set forth in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this
Section 6(d) and (iv) if to any Underwriter, at the most current address given
by such Underwriter to the Company by means of a notice given in accordance with
the provisions of this Section 6(d), which address initially shall be the
address set forth in the applicable underwriting agreement.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, first class, postage prepaid, if mailed;
when receipt is acknowledged, if telecopied; and on the next business day if
timely delivered to an air courier guaranteeing overnight delivery.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

         (e) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms hereof or of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Securities, such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such Person shall be entitled to
receive the benefits hereof.

         (f) Third Party Beneficiary. Each Holder and Participating
Broker-Dealer shall be a third party beneficiary of the agreements made
hereunder between the Company, on the one hand, and the Initial Purchasers, on
the other hand, and shall have the right to enforce such agreements directly to
the extent it deems such enforcement necessary or advisable to protect its
rights or the rights of other Holders hereunder. Each Holder, by its acquisition
of Securities, shall be deemed to have agreed to the provisions of Section 5(b)
hereof.

                                       25
<PAGE>

         (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (i) Restriction on Resales. If (i) the Company or any of its
subsidiaries or affiliates (as defined in Rule 144 under the 1933 Act) shall
redeem, purchase or otherwise acquire any Registrable Security or any Exchange
Security which is a "restricted security" within the meaning of Rule 144 under
the 1933 Act, the Company will deliver or cause to be delivered such Registrable
Security or Exchange Security, as the case may be, to the Trustee for
cancellation and neither the Company nor any of its subsidiaries or affiliates
will hold or resell such Registrable Security or Exchange Security or issue any
new Security or Exchange Security to replace the same.

         (j) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (k) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

                            [SIGNATURE PAGE FOLLOWS]

                                       26
<PAGE>

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

                                       DEVELOPERS DIVERSIFIED REALTY
                                       CORPORATION

                                       By:______________________________________
                                          Name:
                                          Title:

<PAGE>

Confirmed and accepted
         as of the date first above written:

BANC OF AMERICA SECURITIES LLC
J.P. MORGAN SECURITIES INC.
And the other parties referred to in Annex A hereto

By: Banc of America Securities LLC

By: ________________________________
    Name:
    Title:

For itself and on behalf of the other Initial Purchasers

<PAGE>

                                                                         ANNEX A

                               INITIAL PURCHASERS

Banc of American Securities LLC
J.P. Morgan Securities Inc.
Banc One Capital Markets, Inc.
Commerzbank Capital Markets Corp.
Deutsche Bank Securities Inc.
Lehman Brothers Inc.
Morgan Stanley & Co. Incorporated
Wachovia Capital Markets, LLC
Wells Fargo Brokerage Services, LLC

<PAGE>

                                                                         ANNEX B

                              PLAN OF DISTRIBUTION

         Each broker-dealer that receives new notes for its own account under
the exchange offer must acknowledge that it will deliver a prospectus in
connection with any resale of those notes. This prospectus, as it may be amended
or supplemented from time to time, may be used by a broker-dealer for resales of
new notes received in exchange for original notes that had been acquired as a
result of market-making or other trading activities. We have agreed that, for a
period of 180 days after the expiration date of the exchange offer, we will make
this prospectus, as it may be amended or supplemented, available to any
broker-dealer for use in connection with any such resale. Any broker-dealers
required to use this prospectus and any amendments or supplements to this
prospectus for resales of the new notes must notify us of this fact by checking
the box on the letter of transmittal requesting additional copies of these
documents.

         Notwithstanding the foregoing, we are entitled under the registration
rights agreements to suspend the use of this prospectus by broker-dealers under
specified circumstances. For example, we may suspend the use of this prospectus
if:

         -        the SEC or any state securities authority requests an
                  amendment or supplement to this prospectus or the related
                  registration statement or additional information;

         -        the SEC or any state securities authority issues any stop
                  order suspending the effectiveness of the registration
                  statement or initiates proceedings for that purpose;

         -        we receive notification of the suspension of the qualification
                  of the new notes for sale in any jurisdiction or the
                  initiation or threatening of any proceeding for that purpose;

         -        the suspension is required by law; or

         -        an event occurs which makes any statement in this prospectus
                  untrue in any material respect or which constitutes an
                  omission to state a material fact in this prospectus.

         If we suspend the use of this prospectus, the 180-day period referred
to above will be extended by a number of days equal to the period of the
suspension.

         We will not receive any proceeds from any sale of new notes by broker-
dealers. New notes received by broker-dealers for their own account under the
exchange offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on those notes or a combination of those methods, at market prices
prevailing at the time of resale, at prices related to prevailing market prices
or at negotiated prices. Any resales may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of
commissions or concessions from the selling broker-dealer or the purchasers of
the new notes. Any broker-dealer that resells new notes received by it for its
own account under the exchange offer and any broker or dealer that participates
in a distribution of the new notes may be deemed to be an "underwriter" within
the

<PAGE>

meaning of the Securities Act and any profit on any resale of new notes and any
commissions or concessions received by these persons may be deemed to be
underwriting compensation under the Securities Act. The letter of transmittal
states that, by acknowledging that it will deliver and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

         We have agreed to pay all expenses incidental to the exchange offer
other than commissions and concessions of any broker or dealer and will
indemnify holders of the notes, including any broker-dealers, against certain
liabilities, including liabilities under the Securities Act.<PAGE>
                                                                  EXHIBIT 10.1

                                WEST SHORE PLAZA

                           PURCHASE AND SALE AGREEMENT
                             AND ESCROW INSTRUCTIONS

         Seller:             American Freeholds,
                             a Nevada general partnership

                                       and

         Buyer:              Glimcher Properties Limited Partnership,
                             a Delaware limited partnership

                                  June 30, 2003

<PAGE>

                                WEST SHORE PLAZA

                           PURCHASE AND SALE AGREEMENT
                             AND ESCROW INSTRUCTIONS

                                TABLE OF CONTENTS
                                -----------------
<TABLE>
                                                                                                               Page
                                                                                                               ----
<S>      <C>                                                                                                   <C>
1.       PURCHASE OF THE PROPERTY.................................................................................3

2.       ESCROW AND CLOSING.......................................................................................4

3.       CONDITIONS AND INSPECTION...............................................................................13

4.       CONDITIONS TO CLOSING...................................................................................16

5.       ADDITIONAL OBLIGATIONS OF PARTIES.......................................................................17

6.       OPERATION OF PROPERTY...................................................................................18

7.       TITLE AND WARRANTIES....................................................................................19

8.       ASSIGNMENT..............................................................................................22

9.       BROKERAGE COMMISSIONS...................................................................................23

10.      NOTICES.................................................................................................23

11.      CONDEMNATION AND DESTRUCTION............................................................................24

12.      DEFINED TERMS...........................................................................................25

13.      MISCELLANEOUS...........................................................................................28
</TABLE>

                                       i
<PAGE>

                                TABLE OF EXHIBITS
                                ------------------

Exhibit A - Real Property/Title Commitment
Exhibit B - REA
Exhibit C - Rent Schedule
Exhibit D - Personal Property
Exhibit E - Service Contracts and Third Party Contracts
Exhibit F - Special Warranty Deed
Exhibit G - Assignment and Assumption of REA
Exhibit H - Bill of Sale
Exhibit I - Assignment and Assumption of Leases
Exhibit J - Security Deposits
Exhibit K - Assignment and Assumption of Service Contracts
Exhibit L - Assignment of Intangible Assets
Exhibit M - REA Estoppel Letter
Exhibit N - Tenant Estoppel Letter
Exhibit O - Ground Lease Tenant Estoppel
Exhibit P - Seller Estoppel Letter
Exhibit Q - FIRPTA Certificate
Exhibit R - Permitted Exceptions
Exhibit S - Pending Leases
Exhibit T - Schedule of Reports and Studies
Exhibit U - Schedules of Regulatory Compliance
Exhibit V - Environmental Disclosure
Exhibit W - Pending Litigation

                                       ii
<PAGE>

                                WEST SHORE PLAZA
                           PURCHASE AND SALE AGREEMENT
                             AND ESCROW INSTRUCTIONS

         THIS PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (the
"Agreement") is made by and between AMERICAN FREEHOLDS, a Nevada general
partnership ("Seller") and GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware
limited partnership ("Buyer").

                                 Recital of Fact
                                 ---------------

I.       The Mall
         --------

         West Shore Plaza (the "Mall") is a fully-enclosed, two-level regional
shopping center containing a total of approximately 1,056,506 square feet of
improvements. The Mall is located on approximately 50 acres of land and is
located in Tampa, Florida. A portion of the Mall and the real property on which
it is located are owned by Burdines which operates a retail store commonly known
as "Burdines", which owns a total of approximately 228,462 square feet of gross
leasable area of the Mall and various parking lots on approximately two acres. A
portion of the Mall is ground leased by Seller to the two retail stores (the
"Ground Leases") commonly known as "Saks" and "Sears" (jointly, the "Ground
Lessees" and individually, a "Ground Lessee"). Additionally Seller is also the
owner of the remaining area commonly known as the Mall Stores and Cinema (as
hereinafter defined -- the "Improvements") composed of approximately 356,995
square feet of gross leasable area and a parking lot area, which together with
the Ground Lease areas is more particularly described on the Title Commitment
attached hereto as Exhibit "A" and incorporated herein by reference (the "Real
Property").

II.      Reciprocal Easement Agreement
         -----------------------------

         The Mall including the parking areas owned by Burdines and the Seller
are governed by that certain Operating and Reciprocal Easement Agreement (the
"REA") for the Mall dated as of June 9, 1972, as supplemented by
letter-agreement dated June 9, 1972 and further supplemented by that certain
Second Amendment to REA dated October 30, 2001; the REA as supplemented and
amended being more specifically described on Exhibit "B" attached hereto and
incorporated herein by reference.

III.     Management
         ----------

         The Mall is managed by General Growth Management, Inc. ("Manager")
(pursuant to a Management Agreement which terminates concurrently with the
conveyance of the Mall).

IV.      The Property
         -------------

         The property to be conveyed hereunder includes all of Seller's right,
title and interest in:

         A.       The Real Property;

                                       1
<PAGE>

         B.       All buildings and other improvements situated on the Real
Property (the "Improvements") and all rights, titles and interests appurtenant
thereto;

         C.       The Ground Leases and all retail leases affecting the Real
Property and Improvements (the "Leases"), which Leases are more particularly
described on Exhibit "C" attached hereto and incorporated herein by reference
(the "Rent Schedule");

         D.       All equipment, furniture and fixtures and other personal
property used in conjunction with the operation of the Real Property and
Improvements (other than equipment, furniture and fixtures owned by Tenants
under the Leases, the Ground Lessees, Burdines or the property manager General
Growth Management, Inc.) including the items described on Exhibit "D" attached
hereto and incorporated herein by reference (the "Personal Property"), subject
to depletions, replacements or additions thereto in the ordinary course of
business of the Real Property and Improvements and any lease interest therein;

         E.       The third party contracts or agreements pertaining to the Real
Property or Improvements, such as service or utility contracts, which are more
particularly described on Exhibit "E" attached hereto and incorporated herein by
reference (the "Service Contracts").

         F.       All intangible personal property owned by Seller and used in
the operation of the Real Property and the Improvements, including (i)
warranties, guaranties, indemnities and claims, (ii) licenses, permits, or
similar documents, (iii) telephone exchanges, trade names, marks and other
identifying material, including without limitation all right, title and interest
(if any) of Seller in and to the name "West Shore Plaza" and (iv) plans,
drawings, specifications, surveys, engineering reports, and other technical
descriptions which are sometimes hereinafter referred to as the "Intangible
Assets".

         G.       All right, title and interest of Seller under the REA
(Seller's "REA Interest").

         The Real Property, the Improvements, the Leases, the Personal Property,
the Service Contracts, the Intangible Assets and Seller's REA Interest are
hereinafter collectively referred to as the "Property".

V.       Escrow Holder and Title Company.
         -------------------------------

         (A)      The Escrow Holder is Flagler Title Company, 1897 Palm Beach
Lakes, Suite 122, West Palm Beach, FL 33409, Attn: Roger Gamblin.

         (B)      Title Company shall be Chicago Title Insurance Company, and
Flagler Title Company shall act as the issuing agent.

VI.      Effective Date.
         --------------

         The Effective Date of this Agreement (the "Effective Date") shall be
the date the second of Buyer or Seller executes this Agreement and delivers the
fully executed Agreement to the other party.

                                       2
<PAGE>

         Seller desires to sell the Property to Buyer and Buyer desires to
purchase and acquire the Property from Seller upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, Seller and Buyer hereby agree as follows:

         1.   PURCHASE OF THE PROPERTY.
              ------------------------

         1.1      Purchase and Sale.  Seller shall sell the Property to Buyer
and Buyer shall purchase the Property from Seller upon the terms and conditions
hereinafter set forth.

         1.2      Purchase Price.

                   (a) The total purchase price for the Property ("Purchase
Price") shall be One Hundred Fifty-three Million and no/100 Dollars
($153,000,000.00).

                   (b) Allocation of Purchase Price.  The Purchase Price is
allocated as follows:

                   Real Property and Improvements     $152,875,000
                   Personal Property                  $    125,000

                   TOTAL:                             $153,000,000.00

The Buyer and Seller agree (i) to jointly complete and separately file Form 8594
with its respective federal income tax return for the tax year in which the
Close of Escrow (as hereinafter defined) occurs, and (ii) that no party will
take a position on any return, information statement or writing relating to any
tax, before any governmental agency charged with the collection of any such tax
or in any judicial proceeding that is in any manner inconsistent with the terms
of such allocation, without the written consent of the other party which consent
shall not be unreasonably withheld or delayed.

         1.3      Payment of Purchase Price.  The Purchase Price as set forth in
 Section 1.2 shall be paid as follows:

                   (a) Deposit.(i) On the Effective Date, Buyer shall deliver a
deposit ("Deposit") to Escrow Holder in the sum of Three Million Dollars
($3,000,000).

                        (ii)    The Deposit shall be applied to Buyer's
obligations to pay the Purchase Price, provided that Seller shall return, or
instruct Escrow Holder to return, the Deposit to Buyer within three days of
demand by Buyer:

                                (A) when return of the Deposit is called for by
                        the terms of this Agreement,

                                (B) if the sale is not closed because of breach
                        of this Agreement by Seller, or

                                       3
<PAGE>

                                (C) if Seller is unable to perform for any
                        reason other than default of Buyer;

                        (iii)   Escrow Holder shall place any cash Deposit in an
interest-bearing account permitting immediate withdrawal without a penalty.
Interest earned on the Deposit shall be paid to Buyer at the time the Deposit is
either returned to Buyer or applied to the Purchase Price at closing, as the
case may be.

         IF BUYER DEFAULTS FOR ANY REASON WHATSOEVER IN THE PERFORMANCE OF ITS
OBLIGATIONS UNDER THIS AGREEMENT, AND SELLER IS NOT IN DEFAULT, SELLER SHALL
HAVE THE RIGHT TO RETAIN THE DEPOSIT PLUS ANY INTEREST EARNED THEREON AS
SELLER'S DAMAGES FOR BUYER'S DEFAULT. BUYER AND SELLER AGREE THAT THEY HAVE MADE
GOOD FAITH REASONABLE EFFORTS TO DETERMINE WHAT SELLER'S DAMAGES WOULD BE IN THE
EVENT OF A DEFAULT BY BUYER. SELLER AND BUYER HAVE BEEN UNABLE TO ARRIVE AT ANY
MEANINGFUL FORMULA OR MEASURE OF DAMAGES FOR BUYER'S DEFAULT AND HAVE THEREFORE
AGREED THAT SUCH DAMAGES WOULD BE EXTREMELY DIFFICULT AND IMPRACTICAL TO
DETERMINE IN THE EVENT OF BUYER'S DEFAULT. THE DEPOSIT SHALL BE LIQUIDATED
DAMAGES AND SHALL BE SELLER'S SOLE RIGHT TO DAMAGES AND SELLER WAIVES ALL RIGHT
TO SPECIFIC PERFORMANCE.

         BY INITIALING OR SIGNING WHERE INDICATED BELOW, THE PARTIES
SPECIFICALLY APPROVE THIS LIQUIDATED DAMAGES PROVISION.

SELLER:  ____________________                      BUYER:  ____________________

                (b) The balance of the Purchase Price shall be deposited
together with Buyer's portion of the closing costs and reimbursements required
hereunder, in immediately available funds to a bank account designated by Escrow
Holder on or before the Close of Escrow and shall be paid toward the Purchase
Price (and such other sums) at the Close of Escrow.

         2.   ESCROW AND CLOSING.
              ------------------

                2.1     Escrow. The closing of the purchase and sale
contemplated by this Agreement shall take place at the offices of the Escrow
Holder through an escrow (the "Escrow") with Escrow Holder.

                2.2     Closing. The closing of the Escrow (the "Closing" or the
"Close of Escrow") shall occur on August 28, 2003 (the "Closing Date").

                2.3     The Close of Escrow shall be in accordance with the
following terms, conditions and restrictions:

                        (a) Escrow Authorization and Commitment of Parties. A
fully-executed copy of this Agreement shall be deposited with Escrow Holder as
escrow instructions within ten (10) days of the date hereof. Amended and/or
additional instructions ("Additional Escrow Instructions") not inconsistent with
the terms and conditions of this Agreement may be

                                       4
<PAGE>

received into Escrow from Buyer and Seller. Escrow Holder is hereby authorized
and instructed to deliver the documents and moneys to be deposited into Escrow
as hereinafter provided, with the terms and conditions contained herein to apply
to the Escrow. Seller and Buyer shall, prior to Close of Escrow, execute any and
all documents and perform any and all acts reasonably necessary or appropriate
to close the purchase and sale of the Property pursuant to the terms of this
Agreement.

                        (b) Documents to be Deposited with Escrow Holder by
Seller. On or before the Close of Escrow, Seller shall deposit into Escrow for
delivery to Buyer upon the close hereof:

                                (i)     An executed special warranty deed (the
"Deed") in the form attached hereto as Exhibit "F" conveying the Real Property
and Improvements to Buyer;

                                (ii)    Four (4) executed counterparts of the
instrument of assignment (the "Assignment and Assumption of REA") in the form
attached hereto as Exhibit "G";

                                (iii)   Four (4) executed counterparts of the
bill of sale (the "Bill of Sale") in the form attached hereto as Exhibit "H"
conveying the Personal Property to Buyer;

                                (iv)    Four (4) executed counterparts of the
instrument of assignment and assumption in the forms attached hereto as Exhibit
"I" (the "Assignment and Assumption of Leases") assigning to Buyer Seller's
right, title and interest in and to:

                                        (1) Any Lease with respect to any
tenancy in the Property in force as of the Close of Escrow, and any personal
guaranty or guaranties of any such Lease.

                                        (2) The security deposits or cleaning
deposit, key deposit, advance rentals, or similar items paid to or for the
benefit of Seller by any tenant of the Property as are more particularly
described on Exhibit "J" attached hereto (the "Security Deposits").

                                (v)     Four (4) executed counterparts of the
assignment covering all Service Contracts (the "Assignment and Assumption of
Service Contracts") in the form attached hereto as Exhibit "K";

                                (vi)    Four (4) executed counterparts of the
assignment or assignments assigning to Buyer the Intangible Assets, if any, in
the form attached hereto as Exhibit "L";

                                (vii)   An estoppel certificate executed by
Burdines in form and content as required by the REA, or if not so required,
substantially in the form annexed hereto as Exhibit "M", or setting forth
substantially all of the material information set forth in Exhibit "M", and
reflecting no material default by the Seller under the REA, but any alleged
default arising by reason of the presence of asbestos-containing material shall
not be considered a material default for purposes of this section.

                                       5
<PAGE>

                                (viii)  An estoppel certificate, in form and
content as required under the respective leases, or if not so required,
substantially as set forth in Exhibit "N" for each space tenant including J.C.
Penney and Exhibit "O" for each Ground Lessee dated within sixty (60) days of
the date of the Close of Escrow executed by such tenant. Obtaining of such
estoppel certificates from J.C. Penney, and Saks, and from tenants who occupy at
least 80% of the leased portion of the Mall on a square footage basis shall be a
condition to closing (excluding, however, short term kiosk license agreement or
other short term specialty leases or licenses with a term of one (1) year or
less). Seller shall use good faith efforts to obtain such estoppel certificates.
Execution by Seller and delivery of a Seller's estoppel in the form of Exhibit
"P" attached hereto with respect to space for which estoppel certificates were
not received from tenants shall be a condition to closing. Any Tenant Estoppel
Certificate received by Buyer within ninety (90) days after the Close of Escrow
shall permit Seller to remove its certification with respect to the Tenant for
which the Tenant Estoppel Certificate is received to the extent that such Tenant
Estoppel Certificate confirms the information set forth in Seller's
certification.

                                (ix)    A FIRPTA Certificate, in the form
attached hereto as Exhibit "Q", duly executed and acknowledged.

                                (x)     Closing Statements duly executed by
Seller.

                                (xi)    An updated, revised litigation schedule.

                                (xii)   Evidence of the authority of Seller to
execute, and perform under the terms of, this Agreement.

                                (xiii)  All additional documents, instruments,
amendments or supplements as in the reasonable opinion of Buyer's and Seller's
counsels and their respective representatives are necessary for the proper
consummation of the sale contemplated by this Agreement.

The original Leases, or copies, if originals are unavailable, of all Licenses
and Permits, the plans and specifications for the Improvements, to the extent
available, and all keys and entrance cards in Seller's possession to all locks
on the Property, tagged for identification, shall remain at the Property in the
offices of the Property staff.

                        (c) Documents and Sums to be Deposited with Escrow
                Holder by Buyer. On or before the Close of Escrow, Buyer shall
                deposit the following into Escrow.

                                (i)     the sums as provided in Section 1.3;

                                (ii)    Four (4) executed counterparts of the
Assignment and Assumption of REA.

                                (iii)   Four (4) executed counterparts of the
Assignment and Assumption of Leases.

                                (iv)    Four (4) executed counterparts of the
Assignment and Assumption of Services Contracts.

                                       6
<PAGE>

                                (v)     Evidence of the authority of Buyer to
execute and perform this Agreement.

                                (vi)    A Closing Statement duly executed by
Buyer.

                                (vii)   All additional documents, instruments,
amendments or supplements as in the reasonable opinion of Seller's and Buyer's
counsel and their respective representatives are necessary for the proper
consummation of the purchase contemplated by this Agreement.

                        (d) Title Insurance. It shall be a condition to closing
that the Title Company shall furnish to Buyer an American Land Title Association
owners policy of title insurance (ALTA Form B - 1992) (together with reinsurance
and direct access agreements reasonably acceptable to Buyer) in the amount of
the Purchase Price from the Title Company, through the Escrow Holder as agent,
insuring fee title to the Property vested in Buyer as of the Close of Escrow,
subject only to the permitted exceptions listed on Exhibit "R" attached hereto
and incorporated herein by reference (the "Permitted Exceptions") and the
standard printed exceptions and other common exceptions generally included in
Schedule B of Title Binders endorsed as provided in the following paragraph. The
cost of the owners policy of title insurance including the fee payable to the
insuring agent and any endorsements to the Title Insurance Policy requested by
Buyer shall be at Buyer's sole expense.

                  Attached hereto as Exhibit "A" is the Title Commitment issued
by the Title Company showing the state of title of the Property. Buyer shall
have no obligation to accept or approve any exceptions on the Title Commitment
except to the extent mentioned above. If after Buyer's approval of the Title
Commitment any additional items except the Permitted Exceptions are shown in the
policy of title insurance (the "Title Policy") to be provided to Buyer hereunder
and Seller fails to remove or insure the same prior to the Close of Escrow,
Buyer shall have the right to either (x) complete the purchase hereunder and
accept the effect of the additional items; or (y) terminate the Escrow as
Buyer's sole and exclusive remedy prior to the Close of Escrow and the Deposit
and all interest earned thereon shall be returned to Buyer in full. Seller shall
remove or insure over any monetary liens which show as an exception to the Title
Commitment and not approved above. Seller shall execute and deliver such
affidavits as may reasonably be required by the Title Company, including an
affidavit to enable the Title Company to limit any exception in policies for
"rights of Tenants or rights of parties in possession" to the "occupancy rights
of Tenants as Tenants only under the space leases" listed in the current
schedule to be delivered by Seller to Buyer at the Close of Escrow as provided
herein. At least three (3) business days prior to the date of the Close of
Escrow, the Title Company shall furnish Buyer with a pro forma of each Title
Policy (including all of the co-insurance, reinsurance and direct access
agreements which constitute part thereof) substantially as the Title Company is
prepared (subject to events occurring after the date and time of such pro forma
and prior to Close of Escrow) to bind itself to issue as the Title Policy.

                        (e) Duties of Escrow Holder. On the Close of Escrow,
Escrow Holder shall (1) cause the Deed and the Assignment and Assumption of REA,
to be recorded in the Office of the County Recorder of Hillsborough County,
Florida, (2) deliver to Seller the cash proceeds of the purchase and sale, (3)
deliver to Buyer the Title Policy, and (4) forward to Buyer

                                       7
<PAGE>

and Seller, in duplicate, an accounting of all funds received and disbursed and
copies of all executed and recorded or filed documents deposited into Escrow,
with such recording and filing dated endorsed thereon.

                        (f) Prorations - General. All rentals, revenues and
other income of the Property, if any, and all utilities, real estate taxes,
maintenance charges and other regular operating expenses of the Property, if
any, shall be paid or shall be prorated between Seller and the Buyer in
accordance with the provisions set forth in Sections 2.3(h) through (q)
inclusive. For purposes of the prorations and adjustments to be made, the Buyer
shall be deemed to own the Property and therefore shall be entitled to any
revenues and responsible for any expenses for the entire day upon which the
Closing occurs. Any apportionments and prorations which are not expressly
provided for below shall be made in accordance with the customary practice in
the metropolitan Tampa, Florida area. Seller and Buyer shall cause their
accountants to prepare the schedules of adjustments (the "Closing Statement")
prior to the Proration Date. Any net adjustment in favor of the Buyer shall be
paid in the form of a credit to the Purchase Price. Any net adjustment in favor
of the Seller shall be paid in cash or cash equivalent by Buyer to Seller at
Closing. A copy of the Closing Statement agreed upon by Seller and Buyer shall
be executed by both Seller and Buyer and delivered to the Title Company at the
Closing. All Rentals received by Seller after the Proration Date shall be
immediately paid to Buyer. The parties shall make an interim closing adjustment
(the "Interim Closing Adjustment") as of the Closing Date, and a final closing
adjustment (the "Final Closing Adjustment") on May1, 2004. The Interim Closing
Adjustment and the Final Closing Adjustment are jointly referred to as the
"Closing Adjustments".

                        (g) Prorations - Rentals. Rentals shall be prorated upon
the Closing in accordance with the following provisions.

                                (i)     Minimum Rent. Subject to Subsection
2.3(g)(iv) below with respect to Delinquent Rentals, Minimum Rent shall be
prorated between Seller and Buyer as of the Proration Date on an accrual basis
based on the actual number of days in the month during which the Closing occurs.
Seller shall be entitled to all Minimum Rent which accrues up to and including
the Proration Date and Buyer shall be entitled to all Minimum Rent which accrues
after the Proration Date.

                                (ii)    Additional Rental. Subject to Subsection
2.3(k)(iv) below with respect to Delinquent Rentals, and Section 2.3(o) with
respect to the Closing Adjustments, estimated monthly or quarterly payments made
by Tenants of the Property, or parties to the REA, in advance based upon
projected Additional Rentals shall be prorated between Seller and Buyer as of
the Proration Date on an accrual basis based on the actual number of days in the
month during which the Closing occurs. Seller shall be entitled to all
Additional Rent which accrues up to and including the Proration Date and Buyer
shall be entitled to all Additional Rent which accrues after the Proration Date.

                                (iii)   Percentage Rent. Percentage Rent (if
any) payable by a Tenant under each Lease shall be separately prorated as of the
Proration Date between Seller and Buyer in the manner provided in this
Subsection 2.3(g)(iii). Such proration shall be made on a Lease-by-Lease basis
and shall be based upon the fiscal year set forth in each Lease for the

                                       8
<PAGE>

determination of Percentage Rent. The actual fiscal year for Percentage Rent
during which the Closing occurs is hereinafter referred to as the "Applicable
Percentage Rent Fiscal Year". To the extent a Tenant makes monthly or quarterly
interim payments on account of Percentage Rent, the Seller shall initially
retain all such interim payments of Percentage Rent received by the Seller up to
and including the Proration Date until a Closing Adjustment occurs and Buyer
shall initially retain all such interim payments of Percentage Rent received by
Buyer after the Proration Date until a Closing Adjustment occurs. At each
Closing Adjustment, the Seller and Buyer shall prorate the total annual
Percentage Rent due from a Tenant for such Tenant's Applicable Percentage Rent
Fiscal Year as follows: (a) Seller shall be entitled to the portion of the
Percentage Rent payable by each Tenant equal to the product obtained by
multiplying the total annual Percentage Rent paid by each such Tenant by a
fraction, the numerator of which is the number of days in the Applicable
Percentage Rent Fiscal Year up to and including the Proration Date and the
denominator of which is the number of days in the Applicable Percentage Rent
Fiscal Year; and (b) the Buyer shall be entitled to the portion of the
Percentage Rent payable by each Tenant equal to the product obtained by
multiplying the total annual Percentage Rent paid by each such Tenant by a
fraction, the numerator of which is the number of days in the Applicable
Percentage Rent Fiscal Year after the Proration Date and the denominator of
which is the number of days in the Applicable Percentage Rent Fiscal Year.

                                (iv)    Delinquent Rental. As used herein,
"Delinquent Rentals" means Rentals which are due and payable by a Tenant on or
prior to the Proration Date but which have not been paid by the Proration Date.
Delinquent Rentals shall be prorated between Seller and Buyer as of the
Proration Date, but not until they are actually collected by Buyer. Buyer shall
have the right after the Closing to collect Delinquent Rentals relating to the
period prior to the Proration Date, but shall not be obligated to do so. Upon
the Final Closing Adjustment, any Delinquent Rentals which have not as yet been
paid shall be assigned to Seller. After the Closing and continuing through and
after the Final Closing Adjustment, without the express written consent of
Buyer, the Seller shall not take, nor cause Buyer to take, any action against a
tenant owing Delinquent Rentals which would affect such Tenant's right to occupy
its leased premises. Rentals collected by Buyer after the Closing, shall be
applied in the following order of priority: (a) first, to the tenant's current
rental obligation accruing after Closing; and (b) secondly, against the Tenant's
Rental obligations in the chronological order in which they accrue. All
Delinquent Rentals received by Buyer or any of its affiliates after the
Proration Date shall be immediately applied in accordance with the above and any
amount owing to Seller shall be immediately paid upon application; however, in
no event later than thirty (30) days after collection.

                                (A) Seller shall have the right to commence
                        litigation against the Tenants owing Delinquent Rents
                        (the "Delinquent Tenants") to collect the Delinquent
                        Rentals, which pursuant to the above, the Seller is
                        entitled to as and when collected. Seller may proceed
                        with counsel of its own choosing, and at its own
                        expense, to collect any such Delinquent Rentals due by
                        the Delinquent Tenants which are allocable to Seller,
                        provided that Seller shall not seek (i) termination of
                        any Lease; (ii) eviction of any Delinquent Tenant; nor
                        (iii) to levy against the Delinquent Tenant's interests
                        in the Lease, all without the prior written consent of
                        Buyer.

                                       9
<PAGE>

                                (B) If Delinquent Tenant owes Delinquent Rental
                        which is properly allocable to both Seller and Buyer,
                        Seller and Buyer shall cooperate in collecting such
                        Delinquent Rental. If Seller desires to commence
                        litigation as to Delinquent Rentals properly allocable
                        to it, but Buyer does not so desire to commence
                        litigation, then Seller may commence litigation as set
                        forth in (A) above. If both parties desire to commence
                        litigation, Buyer shall institute such litigation on its
                        behalf and Seller's share of any recovery of the
                        Delinquent Rentals from such litigation, after the
                        payment of all expenses in connection therewith, shall
                        be apportioned between Buyer and Seller in accordance
                        with this Subsection 2.3(k)(iv).

                (h) Proration - Taxes and Assessments. All non-delinquent real
estate and personal property taxes on the Property shall be prorated between the
Seller and Buyer on an accrual basis, based upon the actual current tax bill for
the tax year in which the Closing occurs. If the most recent tax bill received
by Seller as of the Proration Date is not the actual current tax bill, then the
Seller and Buyer shall re-prorate the real estate and personal property taxes at
the Final Closing Adjustment if the actual current tax bill is then available.
All amounts payable for real estate and personal property taxes accruing up to
and including the Proration Date shall be the obligation of the Seller and all
amounts payable for real estate and personal property taxes accruing after the
Proration Date shall be the obligation of Buyer. If, after the Proration Date,
any additional or supplemental real estate and personal property taxes are
assessed against the Property by reason of back assessments, corrections to
previous tax bills or other events occurring up to and including the Proration
Date, the Seller and Buyer shall re-prorate the real estate and personal
property taxes at the Final Closing Adjustment to provide the appropriate
credit. Any delinquent real estate and personal property taxes on the Property
shall be paid by Seller at the Closing.

                (i) Proration - Operating Expenses, and Interest and Insurance
Premiums. All costs, expenses, charges and fees for sewer, water, electricity,
heat and air-conditioning service and other utilities, common area maintenance
charges, insurance premiums, rental and privilege taxes, periodic charges
payable under Service Contracts which are assigned to Buyer, periodic fees
payable under transferable Licenses and Permits for the operation (as opposed to
the construction) of the Property, periodic charges under the REA, and any other
costs incurred in the ordinary course of business for the management and
operation of the Property, shall be prorated between Seller and Buyer on an
accrual basis, based on the actual number of days in the month during which the
Closing occurs. The Seller shall be responsible for all such expenses that are
attributable to the period up to and including the Proration Date and Buyer
shall be responsible for all such expenses which are attributable to the period
after the Proration Date. To the extent commercially reasonably and practicable,
Seller shall obtain billings and meter readings as of the day up to and
including the Proration Date to aid in such prorations. If billings or meter
readings as of the day up to and including the Proration Date are obtained,
adjustments of any costs, expenses, charges or fees shown thereon shall be made
in accordance with such billings or meter readings.

                (j) Proration - Security Deposits and Other Tenant Credits. At
the Closing, Buyer shall be credited with and the Seller shall be charged with
an amount equal to the sum of (i) the Security Deposits (and any interest due to
Tenants thereon, if any) being held by

                                       10
<PAGE>

Seller or any other person under the Leases as designated on the Rent Schedule,
plus (ii) the amount of any other credits due Tenants. Upon the Closing, the
Seller shall be entitled to retain the Security Deposits or other such credits
due Tenants, for which Buyer has been credited and Seller has been charged
pursuant to this Subsection 2.3(n).

                (k) Adjustment Dates. As of the Closing Date, Seller and Buyer
shall make an interim adjustment (the "Interim Closing Adjustment") and no later
than May 1, 2004, Seller and Buyer shall make a final adjustment (the "Final
Closing Adjustment") to the prorations, each pursuant to this Subsection 2.3(o).
The Interim Closing Adjustment and the Final Closing Adjustment shall be made as
set forth below in this Subsection 2.3(o).

                        (i)     General. Payment of Delinquent Rentals collected
by Buyer after the Proration Date which have not been adjusted at the Interim
Closing Adjustment and which are attributable to the period up to and including
the Proration Date, shall be made by Buyer to Seller when and as collected and
as soon as practicable following receipt. All other adjustments or prorations
which could not be determined at the Closing or the Interim Closing Adjustment
due to the lack of actual statements, bills or invoices for the current period,
the year-end adjustment of Additional Rentals, the unavailability of final sales
figures or amounts for Percentage Rent or for any other reason shall be made at
the Final Closing Adjustment. Any net adjustment determined at each respective
Adjustment Date in favor of Buyer shall be paid in cash or cash equivalent by
the Seller to Buyer no later than twenty (20) days after the respective
Adjustment Date. Any net adjustment in favor of the Seller shall be paid in cash
or cash equivalent by Buyer to the Seller no later than twenty (20) days after
the respective Adjustment Date.

                        (ii)    Additional Rental Adjustment. The actual amount
of Additional Rentals paid by each Tenant of the Property for the annual period
in which the Proration Date occurs (as distinguished from the estimated amounts
prorated as of the Proration Date pursuant to Subsection 2.3(g)(ii) above) shall
be separately prorated between the Seller and Buyer as of the Proration Date
based on the actual number of days in the annual period during which the
Proration Date occurs. Buyer shall pay to Seller an amount (if any) equal to the
excess of (1) the product obtained by multiplying (A) the total amount of
Additional Rentals paid by the Tenant to Seller and the Buyer for the annual
period during which the Proration Date occurs, by (B) a fraction, the numerator
of which is the number of days in the annual period up to and including the
Proration Date and the denominator of which is the total number of days in the
annual period over (2) the sum of (X) the total amount of the monthly or
quarterly payments of estimated Additional Rentals actually collected by Seller
from the Tenant for the months or quarters preceding the month or quarter during
which the Proration Date occurs, (Y) a pro-rated portion of the monthly or
quarterly estimated Additional Rentals paid by the Tenant for the month or
quarter during which the Proration Date occurs (i.e., the amount of the
adjustment pursuant to Section 2.3(g)(ii) above) and (Z) the entire amount of
the monthly or quarterly estimated Additional Rentals which constitutes
Delinquent Rentals and which is collected by the Buyer from the Tenant after the
Proration Date and paid over to Seller by the Buyer pursuant to Subsection
2.3(g)(iv) above. If, for any Tenant, the Additional Rent received by Seller, up
to and including the Proration Date, exceeds the product obtained above, the
Seller shall pay the excess to Buyer. If the total sum of all advance payments
of projected Additional Rentals

                                       11
<PAGE>

exceeds the Additional Rentals actually due from the Tenant for the annual
period in which the Proration Date occurs, Buyer shall remit or credit the
Tenant with such excess.

                        (iii)   Percentage Rent Adjustment. To the extent the
sum of all interim payments on account of Percentage Rent collected by the
Seller from each Tenant for the Applicable Percentage Rent Fiscal Year exceeds
the amount of Percentage Rent to which Seller is entitled with respect to such
Tenant pursuant to Subsection 2.3(k)(iii), the Seller shall pay such excess to
Buyer. To the extent the sum of all interim payments on the account of
Percentage Rent collected by Buyer from each Tenant for the Applicable
Percentage Rent Fiscal Year exceeds the amount of Percentage Rent to which Buyer
is entitled with respect to such Tenant, then Buyer shall pay such excess to the
Seller. Any such adjustment of interim payments received and actual Percentage
Rent payable shall be made on a Lease-by-Lease basis (as opposed to aggregating
all interim payments received by the Seller from all Tenants and offsetting the
same against the entire amount of Percentage Rent payable by all Tenants). If
the total sum of the interim payments on account of Percentage Rent collected by
the Seller plus the interim payments on account of Percentage Rent collected by
Buyer exceeds the Percentage Rent actually due from the Tenant, Buyer shall
remit or credit Tenant with such excess and the Seller and Buyer shall make any
necessary adjustment between them in accordance with the preceding provisions of
this Subsection 2.3(k)(iii).

                        (iv)    No Further Adjustments. On the Final Adjustment
Date, final prorations shall be made and, to the extent necessary, Buyer and
Seller shall estimate items for which final sums are not available. Except for:
(a) additional or supplemental real estate taxes, real estate tax credits or
rebates, or other adjustments to real estate taxes due to back assessments,
corrections to previous tax bills or real estate tax appeals or contests, and
(b) any Additional Rentals or any Percentage Rent which may be contested by
Tenants or cannot be computed by the Final Adjustment Date, the Final Closing
Adjustment shall be conclusive and binding upon the Seller and Buyer.

                (l) Leasing Commissions and Tenant Improvements. Any and all
leasing commissions and tenant improvements with respect to Leases in existence
on the date hereof including the Pending Leases as set forth as set forth on
Exhibit "S" shall be paid in full and discharged by Seller. Any and all leasing
commissions and tenant improvements with respect to Leases executed after the
date hereof which have been approved by Buyer in accordance with this Agreement
shall be paid in full and discharged by Buyer. Any and all leasing commissions
and tenant improvements with respect to Leases executed after the date hereof
which have been not been approved by Buyer in accordance with this Agreement
shall be paid in full and discharged by Seller.

                (m) Payment of Expenses. Except as otherwise specifically
provided in this Agreement, Seller and Buyer shall each pay all of their own
expenses incurred in connection with this Agreement and the transactions
contemplated hereby, including all related accounting, legal and appraisal fees.

                (n) Continuing Effect. Notwithstanding any provisions of this
Agreement to the contrary, the agreements made by Seller and Buyer pursuant to
Subsections 2.3(j) through (m) (inclusive) shall survive the Closing.

                                       12
<PAGE>

                (o) Recordation; Escrow Fees. The cost of the municipal transfer
taxes, if any, and state and county transfer taxes required to be affixed to the
deeds required herein, and recording fees shall be paid by Seller. Escrow fees
of Escrow Holder shall be divided and paid equally by Buyer and Seller.

                (p) Keys and Leases. On or immediately after the Closing, Seller
shall transfer to Buyer possession of the following, which shall be deemed
delivered if the same are located at the Property:

                        (i) Originals of the Leases and Service Contracts to the
extent in Seller's possession and copies of the tenant correspondence files;

                        (ii)    A set of keys (including access cards, security
codes and passwords, if any) to the Property and all of the Personal Property;

                        (iii)   Originals of the Seller Estoppel Certificates
and the Tenant Estoppel Certificates and all of the original leases under
Seller's possession or control; and

                        (iv)    The physical items referenced in Recital I(F)
above and the materials referenced in Exhibits O, P, R and U herein, as such
indexes are updated to Closing and as such materials which are not otherwise
delivered to Buyer.

                2.4     Escrow Holder Authorized to Complete. If necessary,
Escrow Holder is hereby authorized to insert the date of the Close of Escrow as
the execution date of the deeds and is further authorized to insert the date of
the Close of Escrow and to fill in blank spaces in any and all documents and
instructions delivered to it so long as it is done in conformance with this
Agreement. Escrow Holder shall provide Seller and Buyer with an insured closing
services letter prior to the Approval Date.

        3.      CONDITIONS AND INSPECTION.

                3.1     Conditions to Buyer's Obligations. Buyer shall have
until 5:00 p.m. (Eastern Standard Time) August 5, 2003 (the "Approval Date") to
review and approve the "due diligence" matters set forth in Subsection 3.1(a),
(b), (c) and (d). If any of the Property or the "due diligence" matters are not
approved by Buyer by the Approval Date, then Buyer may elect to terminate this
Agreement and receive the return of the Deposit and all interest earned thereon.
Buyer's election to terminate this Agreement pursuant to this Section 3.1 shall
be effective if, on or before the Approval Date, Buyer has delivered to Seller
and Escrow Holder Buyer's notice of termination. Upon receipt by Escrow Holder
of Buyer's notice of termination pursuant to Section 3.1, Escrow Holder shall
immediately return the Deposit and all interest earned thereon to Buyer and this
Agreement shall be deemed terminated. If Buyer fails to notify Seller and Escrow
Holder of its election to terminate this Agreement in accordance with this
Section 3.1, then this Agreement shall remain in full force and effect. Buyer's
election not to terminate this Agreement, or Buyer's waiver of its right to
terminate this Agreement, shall conclusively be deemed to be an acknowledgement
and agreement by Buyer that Buyer has reviewed and accepted the physical and
environmental conditions and all other aspects of the Property, and has had an
opportunity to analyze and investigate the Property, including without
limitation all

                                       13
<PAGE>

leases, service agreements, and operations reports, and has completed all of its
due diligence to its satisfaction.

                (a)     Seller (i) has made available to Buyer all plans and
specifications for the Property in Seller's possession or under Seller's
control, together with all soils, geological and environmental reports and
governmental reports in Seller's possession or under Seller's control in
connection with the construction of improvements on the Property, and (ii)
permitted Buyer to examine the conditions of the Property, including but not
limited to its soils and any environmental, structural, electrical, mechanical,
roof, HVAC and other elements relating to the Real Property and the
Improvements. Buyer shall provide Seller with copies of all reports prepared by
parties other than Buyer in connection with Buyer's examination of the Property.
Buyer shall give Seller, or Seller's manager or agent, designated by Seller for
this purpose, at least twenty-four (24) hours' notice in advance of any intended
inspection or entry and shall not unreasonably disturb tenants. Buyer shall
comply with all laws and governmental regulations applicable to such inspection
or entry. Buyer shall indemnify, defend with counsel reasonably acceptable to
Seller, and hold Seller, its directors, officers, employees, agents,
representatives, attorneys and consultants harmless from and against any and all
losses, costs, damages, liabilities and expenses (including reasonable
attorneys' fees and costs of suit), arising out of acts or activities of Buyer
or Buyer's agents or consultants on or about the Property; provided Buyer shall
only be responsible for actual, out-of-pocket losses, costs, damages,
liabilities and expenses. Buyer shall not remove flooring, make excavations or
test borings, disturb any plants, trees or shrubs, or engage in any other
activities destructive of the Property without Seller's consent, which consent
shall not be unreasonably withheld or delayed. Any damage to the Property made
by Buyer or any persons acting for or on behalf of Buyer shall be repaired
promptly, replacing or restoring any vegetation that is damaged and generally
putting the Property and all points of entry by the inspectors in the same
condition as before the inspection or entry.

                (b)     Buyer has been provided copies of all Leases and
amendments thereto relating to any portion of the Property, any subleases in
Seller's possession, and any pending leases.

                (c)     After acceptance of this Agreement, Buyer (or its
authorized employees and agents) shall have the right to examine all of Seller's
books and records pertaining to the Property including without limitation the
following documents:

                                (i)     Copies of all certificates of occupancy,
licenses, permits, authorizations, and approvals required by law and issued by
all governmental authorities having jurisdiction and copies of all certificates
issued by the local board of fire underwriters (or other body exercising similar
functions);

                                (ii)    Copies of all certificates of existing
insurance policies in force affecting the Property or any portion thereof and a
synopsis of the existing policies (Buyer shall have the right to review the
existing policies at Seller's office);

                                       14
<PAGE>

                                (iii)   The original of each bill for current
real estate and personal property taxes and for the two most recent prior years,
a current statement of assessed valuation, water charges and other utilities,
together with proof of payment thereof;

                                (iv)    All records and files relating to the
Property including those records and files relating to the ownership,
management, operation and maintenance of the Property;

                                (v)     The current operating budget for the
Property with applicable documentary support and operating statements for the
years 2001, 2002 and year-to-date 2003;

                                (vi)    The financial records of tenant sales
and tenant sales reports for 2000, 2001, 2002 and year to date 2003; and

                                (vii)   Tenant expense recapture calculation
worksheets and resulting billing for 2001, 2002 and projected 2003.

                        (d)     Seller has provided Buyer with an ALTA survey
(the "Survey") prepared by Heidt & Associates, Inc. dated April 7, 2003. Buyer
shall approve or disapprove the Survey on or before the Approval Date. Buyer may
obtain on or before the Approval Date, 2003 at Buyer's expense an update of the
Survey of the Property for the purpose of issuing extended coverage (ALTA) title
insurance, which update of Survey Buyer shall have the right to disapprove if it
reflects any material change from the Survey.

                        (e)     Seller shall perform, observe and comply with
all the covenants, agreements, and conditions required by this Agreement to be
performed, and observed, and complied with by, prior to or as of Close of
Escrow. (f) .........The Title Company shall issue the policy of title insurance
through the Title Underwriters required pursuant to Subsection 2.3(f) as of
Close of Escrow.

                        (g)     As of the Close of Escrow, Seller shall not have
made a general assignment for the benefit of creditors, nor have admitted in
writing its inability to pay its debts as they become due, nor have filed a
petition in bankruptcy or been adjudicated a bankrupt or insolvent or have filed
a petition seeking any reorganization, arrangement, composition, readjustment
liquidation, dissolution or similar relief under any present or future statute,
law or regulation, nor have filed any answer admitting or failing to reasonably
contest the material allegations of a petition filed against it in any such
proceeding or seek or consent to or acquiesce in the appointment of any trustee,
receiver or liquidator of Seller for any material part of Seller's property.

                3.2 Conditions to Seller's Obligations. Seller's obligations to
close Escrow and complete the transaction contemplated herein is subject to
Buyer's performance, observance and compliance with all the material covenants,
agreements, and conditions required by this Agreement to be performed, and
observed, and complied with by, prior to or as of Close of Escrow.

                                       15
<PAGE>

                3.3 Upon termination of this Agreement pursuant to Section 3.1
hereof and as a condition to receiving the Deposit, Buyer shall return any and
all documents, studies and other items received from Seller in Buyer's
possession, under control of, or reasonably available without additional cost
to, Buyer and Seller shall thereafter maintain the confidentiality of all such
information relating to the Property and Seller as provided in Section 14.12
hereof.

        4.      CONDITIONS TO CLOSING.
                ----------------------

                4.1     Conditions to Closing. In addition to the conditions set
forth in Section 3.1 above, the Closing and Buyer's obligation to pay the
Purchase Price and complete the transaction contemplated by this Agreement are
subject to satisfaction of the following conditions, no later than the
respective dates specified below in this Section 4.1, and the obligations of the
parties with respect to such conditions are as follows:

                        (a) Moratorium. At the Closing Date, there shall be no
statute, law, judicial or administrative decision, proceeding, ordinance or
regulation pending, or proposed and known to Seller, to be imposed by the
Authorities or any public or private utility having jurisdiction over the
Property which would prevent the operation or use of the Property in the manner
it is currently operated or used.

                        (b) Representations, Warranties and Covenants of Seller.
Seller shall have materially performed each and every agreement to be performed
by Seller hereunder and Buyer shall have approved, pursuant to the Seller's
Certificate (hereinafter defined), any material changes in the truth and
accuracy of Seller's warranties and representations.

                        (c) Seller's Deliveries. On or before the Closing Date,
Seller shall have delivered or caused to be delivered the items described herein
to be delivered by Seller.

                        (d) Title and Title Insurance. At the Closing Date, the
Title Company shall have issued or shall have unconditionally committed to issue
the Title Policy to Buyer as provided herein.

                        (e) Hart-Scott-Rodino Antitrust Improvements Act of
1976. On the Closing Date, the transaction shall be in compliance with that law
commonly known as the Hart-Scott-Rodino Antitrust Improvements Act of 1976, if
applicable.

                4.2 Conditions Precedent to Seller's Obligations. The Closing
and Seller's obligation to convey the Property to Buyer and consummate the
transaction contemplated by this Agreement are subject to the satisfaction of
the following conditions, no later than the respective dates specified below in
this Section 4.2, and the obligations of the parties with respect to such
conditions are as follows:

                        (a) Buyer's Deliveries. On or before the Closing Date,
Buyer shall have delivered the items described herein to be delivered by Buyer.

                        (b) Purchase Price. On or before the Closing Date, Buyer
shall have deposited into Escrow, for disbursement as provided herein, the
Purchase Price in accordance with Section 1.3(a) of this Agreement.

                                       16
<PAGE>

                        (c) Representations, Warranties and Covenants of Buyer.
Buyer shall have materially performed each and every agreement to be performed
by Buyer hereunder and each and every one of Buyer's representations, warranties
and covenants set forth in this Agreement shall be true and correct in all
material respects as of the Closing Date.

                        (d) Hart-Scott-Rodino Antitrust Improvements Act of
1976. On the Closing Date, the transaction shall be in compliance with that law
commonly known as the Hart-Scott-Rodino Antitrust Improvements Act of 1976, if
applicable.

                4.3 Extension. If any of the conditions precedent to Closing set
forth in Article 3 and Article 4 are not materially satisfied or deemed
satisfied or waived pursuant to the terms of this Agreement on or before the
Closing Date, then Seller may at its election extend the Closing Date from time
to time, upon notice to Buyer, for up to a total period of thirty (30) days to
permit the unsatisfied condition to be satisfied. If Seller elects not to extend
the Closing Date, or if the unsatisfied condition is not satisfied by any such
extended date, then (i) Buyer, if the unsatisfied condition is a condition to
Buyer's obligations hereunder, or (ii) Seller, if the unsatisfied condition is a
condition to Seller's obligations hereunder, may either (x) waive such condition
and proceed to Closing, or (y) terminate this Agreement, in which latter event
the Deposit shall be returned to Buyer, and each party shall be relieved of
further liability or obligation under this Agreement, except for express
provisions of this Agreement that survive termination. If Buyer elects to
proceed to Closing notwithstanding an unsatisfied condition, then upon Closing
such unsatisfied condition(s) shall be deemed irrevocably waived by Buyer,
including any claim Buyer might have had against Seller following Closing
related to such unsatisfied condition. An election by Buyer or Seller to
terminate this Agreement because of the non-satisfaction of a condition
precedent hereunder shall not release the party whose acts or omissions were in
breach of this Agreement and caused such condition not to be satisfied from
liability, if any, arising under this Agreement. Notwithstanding the foregoing,
a condition precedent shall be deemed waived by Buyer if the non-satisfaction of
such condition arises directly or indirectly out of an act or omission of Buyer,
or an act of Buyer in breach of this Agreement.

        5.      ADDITIONAL OBLIGATIONS OF PARTIES.
                ---------------------------------

                5.1     Security Deposits. Seller shall, at the Close of Escrow,
prorate and turn over to Buyer a current list of all tenants and security
deposits, as well as all security deposited by any tenant where not prohibited
by terms of the tenant's Lease and all of the original Leases under Seller's
possession or control; and in connection with the receipt thereof, Buyer will
hold and apply the security deposits for the purposes set out in such tenant's
Lease and indemnify Seller against any liability in connection therewith.

                5.2 Notice to Tenants. Immediately after the Close of Escrow,
Seller shall notify each tenant under the Leases, in writing, of Buyer's
acquisition of the Property. The notice shall set forth Buyer's address for the
payment of rent (or the name of the manager who shall receive the rent on behalf
of Buyer) and for giving notices and shall also recite that the tenant's
security deposit, if any, has been delivered to Buyer. Buyer shall, if requested
by Seller, join in the execution of such notice.

                                       17
<PAGE>

                5.3 Foreign Investors. If Seller fails to deliver the FIRPTA
Certificate (as provided in Section 2.3(c)(vii)), to Buyer prior to or at the
Close of Escrow, then the transaction shall be completed at the Close of Escrow,
but Buyer shall withhold ten percent (10%) of the "amount realized" (as set
forth in the Code of Federal Regulations) by Seller and transmit to the
appropriate Internal Revenue Service Center, all in accordance with said Section
1445 of the Internal Revenue Code and the Regulations pursuant thereto. If
Seller provides Buyer with such executed certificate or notice prior to or at
the Close of Escrow, then no such withholding shall occur.

        6.      OPERATION OF PROPERTY.
                ----------------------

                6.1 Access to and Information Concerning the Property and
Consulting. Seller shall, between the date hereof and the Close of Escrow, allow
Buyer, its agents and attorneys access to the Property for purposes of
inspecting the same or any part thereof at any time as they shall reasonably
request, and furnish to Buyer, its agents and attorneys any and all information
in Seller's control regarding the Property and its operation that Buyer, its
agents and attorneys shall reasonably request from time to time.

                6.2 Leasing of the Property. Unless Seller has obtained Buyer's
written approval, Seller shall not approve (i) any new leases or material
amendments to existing leases and any new contracts or material amendments to
existing contracts (inclusive of all service contracts which Seller may propose
to enter into after the Effective Date and which would be binding on or affect
the Property or any owner or tenant thereof following the Closing), and (ii) the
termination or surrender of, or the assignment or subletting under, any existing
Leases (other than any termination, surrender, assignment or subletting which,
by the terms of the applicable Lease, Seller has no discretionary right to
disapprove); provided that Buyer shall not unreasonably withhold or delay its
approval of any such proposed new lease or material amendment to existing Lease
or new contract or material amendment to existing contract, or any such proposed
termination, surrender, assignment or subletting; and provided further that, if
Buyer reasonably disapproves any such proposed new lease or material amendment
to existing Leases, or new contract or material amendment to existing contract,
or any such proposed termination, surrender, assignment or subletting, then
prior to the Approval Date (but not thereafter), Seller shall nevertheless have
the right to enter into or approve the same, as applicable, if Seller reasonably
determines that failure to do so could have a material adverse effect on the
value, use or operation of the Property should the transactions contemplated by
this Agreement fail to close through no fault on the part of Seller, in which
event Buyer shall have the right to terminate this Agreement by giving written
notice to Seller prior to the later of the Approval Date or three (3) business
days after Seller delivers written notice to Buyer of Seller's intention to
enter into such lease, contract or amendment, or approve such termination,
surrender, assignment or subletting, stating the reasons therefor. Subject to
the above, Seller may continue to execute new leases or amend, terminate or
accept the surrender of any existing tenancies, or approve any assignment or
subletting under any Leases.

                6.3 Possession. Buyer shall have the non-exclusive right to
possession of the Property as of the Close of Escrow.

                                       18
<PAGE>

        7.      TITLE AND WARRANTIES.
                ---------------------

                7.1     Seller's Representations and Warranties. Seller hereby
represents, warrants and covenants as of the Effective Date as follows:

                        (a)     Seller is a general partnership duly organized,
validly existing and in good standing under the laws of the State of Nevada.

                        (b)     Seller has full power and authority to enter
into and perform this Agreement in accordance with its terms; and to the best of
Seller's knowledge, it has made all filings and recordings necessary to exist,
operate and do business under all presently applicable Governmental Regulations
and has the full and unrestricted power and authority, to own, operate and lease
its properties, to carry on its business as currently conducted and to execute
and deliver this Agreement and any other instruments to be delivered pursuant
hereto, and to perform all of its obligations under this Agreement and any other
instruments to be delivered pursuant hereto..

                        (c)     Except as otherwise disclosed on the Schedule of
Reports and Studies attached hereto as Exhibit "T", Seller has no knowledge of
any notice, order or directive of any city, county, state, or federal authority,
that any work of repair, maintenance, or improvement be performed on the
Property.

                        (d)     Except as otherwise disclosed on the Schedules
of Regulatory Compliance attached hereto as Exhibit "U" ("Regulatory
Compliance") or on Exhibit "T", Seller has received no written notice from any
municipal, state, or other statutory authority, any board of fire underwriters,
improvement association, or architectural committee, relating to noncompliance
with any applicable building code, laws, regulations or restrictions applicable
to the Property that has not been corrected, or relating to any threat of
impending condemnation.

                        (e)     Seller has received no notice from any city,
county, state or federal authority of any pending or contemplated condemnation
or change of zoning affecting the Property.

                        (f)     To the best of Seller's knowledge, the Rent
Schedule provided is a complete and correct list of all leases, tenancies, and
other rights of occupancy or use for any portion of the Property in effect on
the date of this Agreement.

                        (g)     To the best of Seller's knowledge, the Schedule
of Service Contracts provided is a complete and correct list of all Service
Contracts for the Property in effect on the date of this Agreement and which
would have a binding effect following the Close of Escrow.

                        (h)     Except for the completion of tenant improvements
under Tenant leases which Seller is obligated to complete and for budgeted
repair and maintenance for the Property, from and after the Effective Date,
Seller will not authorize the Property manager to (i) perform any grading or
excavation, construction, or removal of any improvements, or make any other
change or improvement upon or about the Property; (ii) create or incur, or
suffer to exist, any mortgage, lien, pledge, or other encumbrances in any way
affecting the Property without Buyer's written approval; and (iii) commit any
waste or nuisance upon the Property.

                                       19
<PAGE>

Seller will, maintain and keep the Property in neat condition and will observe
all laws, ordinances, regulations, and restrictions affecting the Property and
its use, until the Close of Escrow.

                        (i)     Except as otherwise disclosed on the
Environmental Disclosures attached hereto as Exhibit "V", (i) to the best of
Seller's knowledge, Seller has fully complied with the Federal Resources
Conservation and Recovery Act ("RCRA"), the Federal Comprehensive Environmental
Response Compensation and Liability Act ("CERCLA"), as amended by the Superfund
Amendments and Reauthorization Act of 1986 ("SARA"), and all comparable state
laws, implementing federal and/or state regulations and local ordinances
(hereafter "Applicable Environmental Laws") and (ii) to the best of Seller's
knowledge and belief, the Property does not contain contaminants, toxic or
hazardous substances or materials within the meaning of the Applicable
Environmental Laws which would result in the imposition on Buyer of clean-up
liability thereunder. Seller hereby discloses and Buyer acknowledges that some
components of the Improvements contain lead and asbestos material.

                        (j)     Except as disclosed on the schedule of pending
litigation attached hereto as Exhibit "W" ("Pending Litigation"), Seller has
received no written notice of any threatened litigation and to the best of
Seller's knowledge, there is no litigation pending not covered by public
liability insurance that might adversely affect the value or the use or
operation of the Property for its intended purpose or the ability of Seller to
perform its obligations under this Agreement. Seller shall notify Buyer promptly
of any such litigation of which Seller becomes aware.

                        (k)     Seller is not a "foreign person" within the
meaning of Section 1445(f)(3) of the Internal Revenue Code.

                        (l)     Seller has not filed or been the subject of any
filing of a petition under the Federal Bankruptcy Law or any federal or state
insolvency laws or laws for composition of indebtedness or for the
reorganization of debtors.

                        (m)     The term "knowledge", when used in this
Agreement, shall mean only such information as has actually been communicated
to, or learned by, Mark R. Preston, Andrew Galbraith, David Olson and Ray
Mocarski who Seller represents are the employees or officers of Seller who are
the persons most knowledgeable with respect to the matters represented and
warranted herein. Seller shall not be deemed to have made any representation to
Buyer regarding the accuracy, completeness, methodology or current status of any
report prepared by a third party and provided to Buyer by Seller or such third
party.

                        (n)     The representations and warranties set forth in
this Article shall be continuing and shall be true and correct on and as of the
date of Close of Escrow with the same force and effect as if made at that time,
and all such representations and warranties shall survive the Close of Escrow
for six (6) months. If, prior to the Closing, Seller becomes aware of any fact
or circumstance that would materially change a representation or warranty of
Seller in this Agreement, then Seller shall promptly give written notice of such
changed fact or circumstance to Buyer. If, prior to Closing, upon Seller's
notice or otherwise, Buyer becomes aware of: any material failure of any
condition to the obligations of Buyer to close the transactions

                                       20
<PAGE>

contemplated in this Agreement; the untruth or inaccuracy of, or facts or
circumstances which would change materially, any representation or warranty of
Seller in this Agreement; or the failure of Seller to comply with any provision
of this Agreement; then Buyer shall have the sole option of: (i) waiving such
condition, breach of warranty, or breach, and proceeding to Close the
transactions contemplated in this Agreement; (ii) subject to Seller's agreement
and concurrence agreeing with Seller to adjust the terms of this Agreement to
compensate Buyer for such change; or (iii) terminating this Agreement and
receiving the return of the Deposit as Buyer's sole remedy prior to Closing.

                7.2     Buyer's Warranties. Buyer hereby represents, warrants
and covenants as follows:

                        (a)     Buyer is a limited partnership duly organized,
validly existing and in good standing under the law of the State of Delaware,
and to the best of Buyer's knowledge, has made all filings and recordings
necessary to exist, operate and do business under all presently applicable
Governmental Regulations and has the full and unrestricted power and authority,
corporate or otherwise, to own, operate and lease its properties, to carry on
its business as currently conducted and to execute and deliver this Agreement
and any other instruments to be delivered pursuant hereto, and to perform all of
its obligations under this Agreement and any other instruments to be delivered
pursuant hereto.

                        (b)     The execution, delivery and performance by Buyer
of this Agreement and all other instruments required to be delivered pursuant
hereto, the fulfillment of and compliance with the respective terms and
provisions hereof and thereof, and the due consummation of the transaction
contemplated hereby, have been duly and validly authorized by all necessary
corporate action (all of which actions are in full force and effect), and do
not: (1) require any consent or approval of any partner, lender, shareholder,
creditor, investor, judicial or administrative body, Authority or other party
which has not already been obtained; or (2) conflict with, or result in any
breach of, or constitute a default under, any presently applicable Governmental
Regulation, bond, note, or other evidence of indebtedness, or under any
contract, indenture, mortgage, deed of trust, loan, lease, partnership
agreement, articles of incorporation, bylaws, shareholder agreement or any other
agreement or instrument to which Buyer is a party or by which Buyer or any of
Buyer's properties may be bound or affected.

                        (c)     Buyer's representations and warranties contained
herein are and will be true and correct as of the Close of Escrow and Buyer will
have duly performed its covenants herein contained.

                        (d)     Buyer acknowledges that it shall inspect or has
thoroughly inspected the Property and all factors relevant to its use,
including, without limitation, the physical condition of the Property, including
the interior and exterior, the structure, condition of soils, environmental
condition, all utilities and all physical and functional aspects of the
Property; all operating records, leases, documents and other material affecting
the income and operation of the Property; and all matters relating to title;
together with all municipal and other legal requirements such as taxes,
assessments, zoning, use permits, and building codes. BUYER SPECIFICALLY
ACKNOWLEDGES AND AGREES THAT SELLER IS SELLING AND BUYER IS PURCHASING THE
PROPERTY ON AN "AS IS WITH ALL FAULTS" BASIS

                                       21
<PAGE>

AND THAT BUYER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND
WHATSOEVER, EXPRESS OR IMPLIED, FROM SELLER, ITS AGENTS, OR BROKERS AS TO ANY
MATTERS CONCERNING THE PROPERTY EXCEPT AS EXPRESSLY SET FORTH IN SECTION 7.1
ABOVE, INCLUDING WITHOUT LIMITATION: (I) THE QUALITY, NATURE, ADEQUACY AND
PHYSICAL CONDITION AND ASPECTS OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
THE STRUCTURAL ELEMENTS, SEISMIC ASPECTS OF THE PROPERTY, FOUNDATION, ROOF,
APPURTENANCES, ACCESS, LANDSCAPING, PARKING FACILITIES AND THE ELECTRICAL,
MECHANICAL, HVAC, PLUMBING, SEWAGE, AND UTILITY SYSTEMS, FACILITIES AND
APPLIANCES, THE SQUARE FOOTAGE WITHIN THE IMPROVEMENTS ON THE REAL PROPERTY AND
WITHIN EACH TENANT SPACE THEREIN, (II) THE QUALITY, NATURE, ADEQUACY, AND
PHYSICAL CONDITION OF SOILS, GEOLOGY AND ANY GROUNDWATER, (III) THE EXISTENCE,
QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF UTILITIES SERVING THE
PROPERTY, (IV) THE DEVELOPMENT POTENTIAL OF THE PROPERTY, AND THE PROPERTY'S
USE, HABITABILITY, MERCHANTABILITY, OR FITNESS, SUITABILITY, VALUE OR ADEQUACY
OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, (V) THE ZONING OR OTHER LEGAL STATUS
OF THE PROPERTY OR ANY OTHER PUBLIC OR PRIVATE RESTRICTIONS ON USE OF THE
PROPERTY, (VI) THE COMPLIANCE OF THE PROPERTY OR ITS OPERATION WITH ANY
APPLICABLE CODES, LAWS, REGULATIONS, STATUTES, ORDINANCES, COVENANTS, CONDITIONS
AND RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY OR OF ANY
OTHER PERSON OR ENTITY, (VII) THE PRESENCE OF HAZARDOUS MATERIALS ON, UNDER OR
ABOUT THE PROPERTY OR THE ADJOINING OR NEIGHBORING PROPERTY, (VIII) THE QUALITY
OF ANY LABOR AND MATERIALS USED IN ANY IMPROVEMENTS ON THE REAL PROPERTY, (IX)
THE CONDITION OF TITLE TO THE PROPERTY, (X) THE LEASES, SERVICE CONTRACTS, OR
OTHER AGREEMENTS AFFECTING THE PROPERTY AND (XI) THE ECONOMICS OF THE OPERATION
OF THE PROPERTY.

        8.      ASSIGNMENT.
                -----------

                8.1     Assignment by Buyer. Buyer shall have the right,
exercisable in Buyer's sole and absolute discretion, to assign this Agreement
and all of Buyer's rights or obligations hereunder, on any one or more occasions
to an Affiliate of Buyer or a partnership, corporation or trust whose partners,
shareholders or beneficiaries are a bank, life insurance company, savings and
loan association, real estate investment trust, pension or welfare fund, college
or university endowment fund or trust, or similar financial institution for whom
Buyer's Asset Manager acts as the asset manager or investment advisor with
respect to its investment in the Property. From and after each such assignment,
all references herein to Buyer shall be deemed to be references to such
assignee, provided, however, that such assignment shall not release the assignor
from its obligations and liabilities hereunder and the assignor shall remain
liable for such obligations and liabilities until such assignee completes the
Closing or the assignee's performance is excused pursuant to the terms of this
Agreement.

                8.2     No Other Assignment. Except as provided in Section 8.1,
neither Buyer nor Seller shall assign all or any part of this Agreement or any
of their rights or obligations

                                       22
<PAGE>

hereunder, or any interest herein, whether by operation of law or otherwise,
without the prior written consent of Seller or Buyer, as applicable, and any
such assignment contrary to the terms hereof shall be null and void and of no
force or effect. Except as the other party may otherwise agree in writing, in no
event shall any assignment by Buyer or Seller of all or any part of this
Agreement or any of their rights or obligations under this Agreement, whether
before or after the Closing, release Buyer or Seller, as the case may be, from
any of their respective liabilities or obligations hereunder.

        9.      BROKERAGE COMMISSIONS.
                ----------------------

                9.1     Mutual Representations. Each party represents to the
other that no brokers except Morgan Stanley Realty have been involved in this
transaction. Seller shall pay any commissions owed to Morgan Stanley Realty. It
is agreed that if any claims for brokerage commissions or finder's fees or like
payment arise out of or in connection with the transaction provided herein, and
in the event any claim is made, all such claims shall be handled and paid by the
party whose actions or alleged commitment form the basis of such claim. It is
further agreed that each party whose actions or alleged commitment form the
basis of a claim agrees to indemnify and hold harmless the other party from and
against any and all claims or demands with respect to the brokerage fees or
agent's commissions or other compensation asserted by any person, firm, or
corporation in connection with this Agreement or the transactions contemplated
hereby.

        10.     NOTICES.
                --------

Any notices given under this Agreement shall be in writing and shall be served
either personally or delivered by first class or express U.S. mail with postage
prepaid, return receipt requested pursuant to registered or certified mail, or
by nationally recognized overnight commercial courier service with charges
prepaid. Notices may also effectively be given by transmittal over electronic
transmitting devices if the party to whom the notice is being sent has a
receiving device in its office, and provided a complete copy of the notice shall
also be served either personally or in the same manner as required for a mailed
notice. Notices shall be deemed received at the earlier of actual receipt or one
(1) day following deposit in U.S. mail with postage prepaid or with a nationally
recognized overnight commercial courier service with charges prepaid. Notices
shall be directed as follows:

           If to Seller:     American Freeholds
                             c/o Grosvenor International
                               (American Freeholds) Limited
                             One Embarcadero Center, Suite 3900
                             San Francisco, California  94111
                             Attention:  David Olson
                             Fax No:  (415) 434-2742
                             Telephone No:  (415) 434-0175
                             Email:  dolson@grosvenorcalifornia.com

                                       23
<PAGE>

                  Copy to:          Greene Radovsky Maloney & Share LLP
                                    Four Embarcadero Center, Suite 4000
                                    San Francisco, California  94111
                                    Attention:  Graham Maloney
                                    Fax No:  (415) 777-4961
                                    Telephone No: (415) 981-1400
                                    Email:  gmaloney@grmslaw.com

                  If to Buyer:      Glimcher Properties Limited Partnership
                                    20 South Third Street
                                    Columbus, OH 43215
                                    Attention:  General Counsel
                                    Fax No: 614.621.8863
                                    Telephone No: 614.621.9000 ext.343
                                    Email:  gschmidt@glimcher.com

         If to Escrow Holder        Flagler Title Company
                                    1897 Palm Beach Lakes, Ste.125
                                    West Palm Beach, FL 33409
                                    Attention:  Roger Gamblin
                                    Fax No.: 561.686.5039
                                    Telephone No.: 561.686.7611
                                    Email:  roger@flaglertitle.com

        11.     CONDEMNATION AND DESTRUCTION.
                -----------------------------

                11.1    Eminent Domain or Taking. If, prior to the Close of
Escrow, any portion of the Property is taken or if the access to the Project is
reduced or restricted, by eminent domain or otherwise (or is the subject of a
pending, threatened or contemplated taking which has not been consummated),
Buyer shall have the option, in Buyer's sole and absolute discretion, to
terminate this Agreement upon written notice to Seller given not later than ten
(10) business days after Buyer is notified of such taking (and if necessary, the
Closing Date shall be extended by the number of days necessary to provide Buyer
such ten (10) Business Day period). If Buyer elects to terminate this Agreement,
neither party shall have any further rights or obligations hereunder, except the
payment of title and escrow cancellation costs, which shall be borne equally by
Seller and Buyer. If Buyer does not elect to terminate this Agreement, all
awards for the taking by eminent domain which accrue to Seller shall be paid to
Buyer and the parties shall proceed to the Closing pursuant to the terms hereof,
without modification of the terms or Purchase Price of this Agreement, provided
that Buyer shall accept the Property "AS IS" and "WITH ALL FAULTS" insofar only
as such condemnation is concerned, and all of Seller's covenants,
representations and warranties hereunder shall be deemed modified accordingly.
Unless or until this Agreement is terminated, Seller shall not take any action
with respect to any eminent domain proceeding without the prior written consent
of Buyer which consent shall not be unreasonably withheld or delayed.

                                       24
<PAGE>

                11.2    Fire or Casualty. Prior to the Closing, and
notwithstanding the pendency of this Agreement, the entire risk of loss or
damage by fire or other casualty shall be borne as set forth in this Section
11.2. If, prior to the Closing, any part of the Property is damaged or destroyed
by earthquake, flood, landslide, fire or other casualty, Seller shall
immediately notify Buyer of such fact. If such damage or destruction is
"material", either Buyer or Seller shall have the option to terminate this
Agreement upon written notice to the other party given not later than thirty
(30) days after receipt of Seller's notice of such damage or destruction (and,
if necessary, the Closing Date shall be extended by the number of days necessary
to provide Buyer such thirty (30) day period). For purposes hereof, "material"
shall be deemed to be any uninsured damage or destruction to the Property in
excess of Five Million Dollars ($5,000,000.00), and any insured damage or
destruction to the Property where the cost of repair or replacement is estimated
to be Five Million Dollars ($5,000,000.00) or more. If either Buyer or Seller
elects to terminate this Agreement, neither party shall have any further rights
or obligations hereunder except the payment of title and escrow cancellation
charges which shall be borne equally by Buyer and Seller. If neither Buyer or
Seller elects to terminate this Agreement, or if the damage or destruction is
not material, this Agreement shall not terminate but Seller shall be entitled to
the proceeds of any insurance maintained by or on behalf of Seller and Seller
shall repair or restore the damage or destruction as soon as reasonable
practical, and upon the completion of such repair or restoration the parties
shall proceed to the Closing pursuant to the terms hereof without any adjustment
of the Purchase Price.

        12.     DEFINED TERMS.
                --------------

                12.1    Definitions. The following terms shall have the
respective meanings assigned to them:

                        (a)Additional Rental - means such sums and charges
payable by the Tenant's pursuant to the Leases (other than Minimum Rent and
Percentage Rent) including without limitation, expense reimbursement; operating
cost pass-throughs; utility charges; common area maintenance charges; charges
payable under the REA; administrative charges, real estate and privilege taxes;
Roof Repair Fund and insurance cost reimbursements.

                        (b) Affiliate - means with respect to any specific
entity or natural person, any firm, corporation, partnership, association, trust
or other entity which is controlled by, under the common control of or subject
to the control of such specific entity or natural person. For purposes hereof,
the term "control" shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of any
such entity, or the power to veto major policy decisions of any such entity,
whether through the ownership of voting securities, by contract or otherwise.

                        (c) Authorities - means all federal, state and local
governmental and quasi-governmental bodies, boards, commissions and agencies
having jurisdiction over the Property including, without limitation, Tampa,
Florida.

                        (d) Business Day - means the days (other than Saturday
or Sunday) on which federally insured national banking associations are required
to be open for business in Tampa, Florida.

                                       25
<PAGE>

                        (e) Improvements - mean, in addition to its definition
in the Recital of Facts, all buildings, fixtures, structures, streets, roadways,
sidewalks, walkways, parking areas, storm drainage facilities, utility systems
(including sanitary sewer, natural gas, domestic and fire protection water,
electrical, telephone and cable television systems) and any other facilities or
improvements situated on the Real Property or constructed as part of the
Improvements. The term "Improvements" also means all rights, titles and
interests appurtenant to the Real Property, including rights and obligations
under any REA and rights to all streets, alleys, easements and rights of way,
in, on, across, in front of and abutting or adjoining the Real Property.

                        (f) Leases - means all leases, licenses, guaranty
agreements, rental agreements or occupancy agreements and all amendments,
modifications and supplements thereto, executed by either (i) unilaterally by
Seller; or (ii) Seller and Tenant; or (iii) a third party guarantor of a Lease,
relative to occupying space within the Improvements (together with all rents,
issues and profits thereunder).

                        (g) Minimum Rent - means all base rent, minimum rent or
basic rent payable in fixed installments for stated periods by Tenants under the
Leases.

                        (h) Official Records - means the Real Property Records
of Hillsborough County, Florida.

                        (i) Percentage Rent - means rentals which are expressed
as a fixed percentage or percentages of the gross receipts or gross sales in
excess of the stated "break point" of the Tenants under the Leases.

                        (j) Permitted Encumbrances - means and shall include (i)
the Permitted Exceptions; and (ii) matters affecting the Property set forth in
the Title Commitment and approved, or deemed approved, by Buyer pursuant to
Section 2.3(f).

                        (k) Personal Property - means, in addition to its
definitions in the Recitals of Fact, all fixtures, food court furniture and
fixtures, equipment, appliances, carpet, drapes, maintenance equipment and
tools, all other machinery, landscaping, planting and foliage and furniture and
personal property of every kind or character owned by the Seller and located in
or on or used in connection with the Real Property or the Improvements or
operations thereon, including the personal property described on the Personal
Property Inventory. The term "Personal Property" shall be deemed to exclude all
property owned by the Tenants and by Burdines.

                        (l) Personal Property Inventory - means the list
attached as Exhibit "D".

                        (m) Proration Date - means 11:59 p.m. on the date
preceding the Closing Date, such that Buyer is deemed to have owned the Property
the entire day upon which the Closing occurs.

                        (n) REA - shall have the meaning set forth otherwise
herein and shall also include all other agreements between the "Developer" or
"Operator" thereunder and any

                                       26
<PAGE>

Burdines pertaining thereto, such other agreements to include, but not be
limited to, those listed on Exhibit "B".

                        (o) Real Property - means, in addition to the definition
in the Recital of Facts, the real property described in Exhibit "A" together
with all and singular the rights pertaining to such real property, including,
without limitation, any right, title and interest of Seller, if any, in and to
all adjacent streets, roads, alleys, underground tunnels, easements, licenses,
and rights-of-way, whether such property is owned or claimed by deed,
limitations, or otherwise, and whether such real property is located inside or
outside the metes and bounds description contained in Exhibit "A", located
within the Survey.

                        (p) Rentals - means, collectively, all Minimum Rent,
Additional Rentals, Percentage Rent and other sums and charges payable by the
Tenants under the Lease. Rentals shall not include Security Deposits unless and
until such Security Deposits are forfeited.

                        (q) Security Deposits - means all security deposits,
Rentals prepaid for a period which is more than thirty (30) days in advance,
access card or key deposits, cleaning fees and other deposits (plus any interest
accrued thereon) paid by Tenants to Seller pursuant to the Leases.

                        (r) Title Company:

                            Chicago Title Insurance Company
                            c/o Flagler Title Company
                            1897 Palm Beach Lakes, Ste.125
                            West Palm Beach, FL 33409
                            Attention:  Roger Gamblin
                            Fax No.: 561.686.5039
                            Telephone No.: 561.686.7611
                            Email:  roger@flaglertitle.com

                        (s)     Title Underwriters - cumulatively the following
title insurance underwriters with their indicated amounts of title insurance
coverages:

           UNDERWRITER                    AMOUNT OF COVERAGE

Chicago Title Insurance Company           $_____________ (co-insurance)
                                          $_____________    (primary liability)
_______ Title Insurance Company           $_____________ (co-insurance)
                                          $_____________ (reinsurance)
_______ Title Insurance Company           $_____________    (reinsurance)
_______ Title Insurance Company           $_____________    (reinsurance)

                12.2 Use of Defined Terms. The definitions set forth in Section
12.1 are intended to supplement and be consistent with the defined terms set
forth in the Recitals of Fact and in the other Sections hereof, but in the event
of any conflict between defined terms in the Recitals of Fact or the other
Sections and the definitions in Section 12.1, the definitions in

                                       27
<PAGE>

Section 12.1 shall prevail. Any defined terms used in the plural shall refer to
all members of the relevant class and any defined terms used in the singular
shall refer to any number of members of the relevant class. Any reference to
this Agreement or any Exhibits hereto and any other instruments, documents and
agreements shall include this Agreement, Exhibits and other instruments,
documents and agreements as originally executed or existing and as the same may
from time to time be supplemented, modified or amended.

                12.3 Accounting Terms. All accounting terms not specifically
defined in this Agreement shall be construed in conformity with, and all
financial data required by this Agreement to be submitted shall, unless
otherwise expressly stated, be prepared in conformity with generally accepted
accounting principles, applied on a consistent basis.

        13.     MISCELLANEOUS.
                --------------

                13.1 Additional Actions and Documents. Each of the parties
hereto hereby covenants to take or cause to be taken such further actions, to
execute, deliver, and file or cause to be executed, delivered, and filed such
further documents and instruments, and to obtain such consents, as may be
necessary or as may be reasonably required in order to effectuate fully the
purposes, terms, and conditions of this Agreement, whether before, at, or after
the Closing.

                13.2 Limitations on Benefits. It is the explicit intention of
the parties hereto that no person or entity other than the parties hereto and
their permitted successors and assigns is or shall be entitled to bring any
action to enforce any provision of this Agreement against any of the parties
hereto, and the covenants, undertakings and agreements set forth in this
Agreement shall be solely for the benefit of, and shall be enforceable only by,
the parties hereto or their respective successors and assigns as permitted
hereunder.

                13.3 Cumulative Remedies. Prior to or following the Closing,
each and every one of the rights, benefits and remedies provided to Buyer by
this Agreement, or any instrument or documents executed pursuant to this
Agreement, are cumulative, and shall not be exclusive of any other of said
rights, remedies and benefits allowed by law or equity to Buyer including the
right to bring an action for specific performance. From and after the Closing,
each and every of the rights, benefits and remedies provided to Seller by this
Agreement, or any other documents or agreements delivered at, or in connection
with, the Closing shall be cumulative and shall not be exclusive of any other of
said rights, remedies and benefits allowed under this Agreement or such other
documents or agreements.

                13.4 Pronouns; Time. All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the person or entity may require. If any period or time set
forth in this Agreement ends or occurs on a day which is not a Business Day,
then such period or time shall instead end on the next immediately following
Business Day.

                13.5 Exhibits. The Exhibits enumerated herein are attached
hereto. When attached to this Agreement, the Exhibits are hereby made a part of
this Agreement as fully as if set forth in the text hereof.

                                       28
<PAGE>

                13.6 Headings. The title and headings of the various Sections
hereof are intended solely for means of reference and are not intended for any
purpose whatsoever to modify, explain or place any construction on any of the
provisions of this Agreement.

                13.7 Invalidity. If any of the provisions of this Agreement or
the application thereof to any persons or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement by the application of
such provision or provisions to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable shall not be effected thereby,
and every provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

                13.8 Attorneys' Fees. In the event of any litigation between the
parties hereto to enforce any of the provisions of this Agreement or any right
of either party hereto, the unsuccessful party to such litigation agrees to pay
the successful party all costs and expenses, including reasonable attorneys'
fees, incurred hereby by the successful party, all of which may be included in
and as part of the judgment rendered in such litigations.

                13.9 Entire Agreement. The terms of this Agreement are intended
by the parties as a final expression of their agreement with respect to such
terms as are included in this Agreement and may not be contradicted by evidence
of any prior or contemporaneous agreement. The parties further intend that this
Agreement constitutes the complete and exclusive statement of its terms and that
no extrinsic evidence whatsoever may be introduced in any judicial proceedings,
if any, involving this Agreement. No provision of this Agreement may be amended
or added to except by an agreement in writing signed by the parties hereto or
their respective successors in interest. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida.

                13.10 Successors. All the terms, covenants and conditions hereof
shall be binding upon and inure to the benefit of the heirs, executors,
administrators, successors and assigns of the parties hereto.

                13.11 Counterparts. This Agreement may be executed in several
counterparts each of which shall be an original, but all of such counterparts
shall constitute one such Agreement.

                13.12 Confidentiality. Until Closing and thereafter, Buyer and
its partners, attorneys, agents, employees and consultants will treat the
information disclosed to it by Seller as confidential, giving it the same care
as Buyer's own confidential information, and make no use of any such disclosed
information not independently known to Buyer except in connection with the
transactions contemplated hereby. In the event of such a termination, Buyer
shall promptly return copies of all such confidential information to Seller. In
addition, the parties shall agree to any press release to be issued regarding
this transaction, and except as required by applicable law, neither party shall
issue any such release or make any statement to the media without the other
party's consent, which shall not be unreasonably withheld.

                13.13 Force Majeure. The time for performance of either Buyer's
or Seller's obligations hereunder shall be extended for a period equal to any
delays in the performance of

                                       29
<PAGE>

that party's obligations caused by acts of God, labor disputes, strikes, weather
conditions, riots, storms, delays or unavailability of supplies, breach by the
Seller's contractor or subcontractors, or any other causes beyond Buyer's or
Seller's reasonable control, as the case may be (collectively, "Force Majeure
Events"); provided, however, lack of funds or willful acts of a party shall not
constitute a Force Majeure Event hereunder. Further, it shall be a condition to
any extension of the time for a party's performance hereunder that such party
notify the other party within five (5) Business Days following the occurrence of
the Force Majeure Event. In the event any such delays shall cause or are
reasonably likely to cause the Closing Date to extend six (6) months beyond
October 4, 2003, then either party shall have the right to terminate this
Agreement.

                13.14 Time of the Essence. Time is of the essence in this
Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the date set forth below and is effective as of the latter.

                           SELLER:

                           AMERICAN FREEHOLDS,
                           a Nevada general partnership

                           By:     GROSVENOR INTERNATIONAL
                           (AMERICAN FREEHOLDS) LIMITED,
                           a Nevada corporation,
                           its general partner

                                        By:      /s/ David Olson
                                                 ---------------
                                        Its:     Senior Vice President
                                                 ---------------------

                                        By:      /s/ Gerry Zalkovsky
                                                 -------------------
                                        Its:     Senior Vice President
                                                 ---------------------

                           BUYER:

                           GLIMCHER PROPERTIES LIMITED PARTNERSHIP
                           a Delaware limited partnership

                           By:     GLIMCHER PROPERTIES CORPORATION, a Delaware
                                   corporation, its General Partner

                                            By:      /s/ Herbert Glimcher
                                                     --------------------
                                                     Herbert Glimcher
                                                     Chairman & CEO

                                       30
<PAGE>

ESCROW HOLDER APPROVES THE ESCROW PROVISIONS AND SPECIFIC INSTRUCTIONS TO ESCROW
HOLDER SET FORTH IN THE FOREGOING AGREEMENT AND AGREES TO ACT IN ACCORDANCE
THEREWITH.

FLAGLER TITLE COMPANY

By:      ______________________________
Its:     ______________________________
Date:    _________________________, 2003

                                       31

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