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                                  EXHIBIT 10.68

                        GUARANTY OF RECOURSE OBLIGATIONS

     This GUARANTY OF RECOURSE OBLIGATIONS (this "GUARANTY") is executed as of
July ___, 2002 by HORIZON GROUP PROPERTIES, INC., a Maryland corporation, and
HORIZON GROUP PROPERTIES, L.P., a Delaware limited partnership, each having an
address at c/o Horizon Group Properties, Inc., 77 West Wacker Drive, Suite 4200,
Chicago, Illinois 60601 (each, a "GUARANTOR" and collectively, "Guarantors"),
for the benefit of UBS WARBURG REAL ESTATE INVESTMENTS INC., a Delaware
corporation, having an address at 1285 Avenue of the Americas, 11th Floor, New
York, New York 10019 ("LENDER").

                              W I T N E S S E T H:

     A.   Pursuant to (i) that certain Promissory Note, dated of even date
herewith, executed by Laughlin Holdings LLC, a Delaware limited liability
company ("LAUGHLIN MEZZANINE BORROWER") and payable to the order of Lender in
the original principal amount of up to One Million Seven Hundred Fifty Thousand
and No/100 Dollars ($1,750,000.00) (together with all renewals, modifications,
increases and extensions thereof, the "LAUGHLIN MEZZANINE NOTE"), (ii) that
certain Promissory Note, dated of even date herewith, executed by Medford
Holdings LLC, a Delaware limited liability company ("MEDFORD MEZZANINE
BORROWER") and payable to the order of Lender in the original principal amount
of up to One Million and No/100 Dollars ($1,000,000.00) (together with all
renewals, modifications, increases and extensions thereof, the "MEDFORD
MEZZANINE NOTE"), and (iii) that certain Promissory Note, dated of even date
herewith, executed by Warrenton Holdings LLC, a Delaware limited liability
company ("WARRENTON MEZZANINE Borrower"; and Warrenton Mezzanine Borrower,
together with Laughlin Mezzanine Borrower and Medford Mezzanine Borrower, each,
a "BORROWER" and collectively, "BORROWERS") and payable to the order of Lender
in the original principal amount of up to and Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) (together with all renewals, modifications,
increases and extensions thereof, the "WARRENTON MEZZANINE NOTE"; and the
Warrenton Mezzanine Note, together with the Laughlin Mezzanine Note and the
Medford Mezzanine Note, each a "NOTE" and collectively, the "NOTES"), Borrowers
have become indebted, and may from time to time be further indebted, to Lender
with respect to a loan (the "LOAN") which is made pursuant to that certain
Mezzanine Loan Agreement, dated of even date herewith, by and among Borrowers
and Lender (as the same may be amended, modified, supplemented, replaced or
otherwise modified from time to time, the "MEZZANINE LOAN AGREEMENT").
Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in the Mezzanine Loan Agreement.

     B.   Lender is not willing to make the Loan, or otherwise extend credit, to
Borrowers unless Guarantors unconditionally guarantee the payment and
performance to Lender of the Guaranteed Obligations (as herein defined).

     C.   Guarantors are each the owners of a direct or indirect interest in
each Borrower, and Guarantors will directly benefit from Lender's making the
Loan to Borrowers.

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     NOW, THEREFORE, as an inducement to Lender to make the Loan to Borrowers
and to extend such additional credit as Lender may from time to time agree to
extend under the Mezzanine Loan Documents, and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

                                    ARTICLE 1
                          NATURE AND SCOPE OF GUARANTY

     Section 1.1    GUARANTY OF OBLIGATION. Each Guarantor hereby irrevocably
and unconditionally guarantees to Lender and its successors and assigns the
payment and performance of the Guaranteed Obligations as and when the same shall
be due and payable, whether by lapse of time, by acceleration of maturity or
otherwise. Each Guarantor hereby irrevocably and unconditionally covenants and
agrees that it is liable for the Guaranteed Obligations as a primary obligor.

     Section 1.2    GUARANTEED OBLIGATIONS. Section 1.1 Each Guarantor hereby
assumes liability as a primary obligor for, hereby unconditionally guarantees
payment to Lender of, hereby agrees to pay, protect, defend and save Lender
harmless from and against, and hereby indemnifies Lender from and against, any
and all liabilities, obligations, losses, damages (including those resulting
from the diminution in value of any or all of the Collateral and in any other
collateral given to Lender), costs and expenses (including, without limitation,
attorneys' fees and costs), causes of action, suits, claims, demands and
judgments, of any nature or description whatsoever, which may at any time be
imposed upon, incurred by or awarded against Lender as a result of any event set
forth in the following clauses (i) through (xiv):

     (i) fraud or material misrepresentation of a material fact by or on behalf
of Borrowers (or any of them) or either or both Guarantors or any of their
respective agents or representatives in connection with the Loan, including by
reason of any claim under RICO;

     (ii) the gross negligence or willful misconduct by or on behalf of
Borrowers, Owners (or any of them) or either or both Guarantors or any of their
respective agents or representatives in connection with the Loan;

     (iii) the breach by any Borrower of any representation, warranty, covenant
or indemnification provision in the Environmental Indemnity or in any other
Mezzanine Loan Document concerning environmental laws, hazardous substances
and/or asbestos and any indemnification of Lender with respect thereto in either
document;

     (iv) wrongful removal or willful destruction of any portion of the
Properties after an Event of Default;

     (v) any intentional, physical waste of any Individual Property resulting
from the action or inaction of Borrowers, Owners (or any of them) or Manager
which materially adversely affects the value of such Individual Property;

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     (vi) any Legal Requirement (including RICO) resulting in the forfeiture by
Borrowers, Owners (or any of them) of any Individual Property, or any material
portion thereof, because of the conduct or purported conduct of criminal
activity by Borrowers, Owners (or any of them) or either or both Guarantors or
any of their respective agents or representatives in connection therewith;

     (vii) any material misrepresentation, miscertification or breach of
warranty by any Borrower with respect to any representation, warranty or
certification contained in this Guaranty or any other Mezzanine Loan Document or
in any document executed in connection therewith, pursuant to any of the
Mezzanine Loan Documents or otherwise to induce Lender to make the Loan, or any
advance thereof, or to release monies from any account held by Lender (including
any reserve or escrow) or to take other action with respect to any of the
Collateral for the Loan;

     (viii) the misapplication or conversion by or on behalf of Borrowers,
Owners (or any of them) of (A) any insurance proceeds paid by reason of any
loss, damage or destruction to any Individual Property, (B) any Awards or other
amounts received in connection with the Condemnation of all or a portion of any
Individual Property, or (C) any Gross Revenues (including Rents, security
deposits, advance deposits or any other deposits and Lease Termination
Payments);

     (ix) failure to pay charges for labor or materials or other charges that
can create Liens on any portion of any Individual Property, to the extent such
Liens are not bonded over or discharged in accordance with Section 3.6 of the
Mortgages;

     (x) any security deposits, advance deposits or any other deposits collected
with respect to any Individual Property which are not delivered to Lender in
accordance with the provisions of the Mezzanine Loan Documents;

     (xi) the failure to pay Taxes with respect to any Individual Property if
such Individual Property generates sufficient Gross Revenue to pay such Taxes;

     (xii) failure to obtain and maintain the fully paid for Policies in
accordance with Section 5.1.1 of the Mezzanine Loan Agreement;

     (xiii) the failure of any or all of the Borrowers to cause Owners to permit
on-site inspections of any or all of the Properties as required by Section 4.1.5
of the Mezzanine Loan Agreement or to provide financial information as required
by Section 4.1.7 of the Mezzanine Loan Agreement; and/or

     (xiv) Borrowers' indemnification of Lender set forth in Section 9.2 of the
Mezzanine Loan Agreement.

     (b)    In addition to, and without limiting the generality of, the
foregoing clause (a), and notwithstanding anything to the contrary set forth in
this Guaranty or in any of the other Mezzanine Loan Documents, each Guarantor
hereby acknowledges and agrees that the Obligations shall be fully recourse to
each Guarantor in the event that:

     (i) any or all of the Borrowers fail to maintain its/their status as a
single purpose entity or fail

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to appoint a new property manager upon the request of Lender after the
occurrence of any of the events set forth in Section 7.3 of the Loan Agreement,
each as required by, and in accordance with, the terms and provisions of the
Loan Agreement and the Pledges;

     (ii) any or all of the Borrowers fail to obtain Lender's prior consent to
any subordinate financing or other voluntary Lien encumbering any Individual
Property or the Collateral;

     (iii) any or all of the Borrowers fail to obtain Lender's prior consent to
any Transfer of any Individual Property or the Collateral or any interest
therein or any Transfer of any direct or indirect interest in Borrowers (or any
of them), in any such case, as required by the Pledges or the Mezzanine Loan
Agreement, other than a Permitted Transfer;

     (iv) Borrowers (or any of them) file a voluntary petition under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law;

     (v) an Affiliate, officer, director or representative which controls,
directly or indirectly, any Borrower files, or joins in the filing of, an
involuntary petition against Borrowers (or any of them) under the Bankruptcy
Code or any other Federal or state bankruptcy or insolvency law, or solicits or
causes to be solicited petitioning creditors for any involuntary petition
against Borrowers (or any of them) from any Person;

     (vi) Borrowers (or any of them) file an answer consenting to, or otherwise
acquiescing in, or joining in, any involuntary petition filed against it by any
other Person under the Bankruptcy Code or any other Federal or state bankruptcy
or insolvency law, or solicit or cause to be solicited petitioning creditors for
any involuntary petition from any Person;

     (vii) any Affiliate, officer, director or representative which controls any
Borrower consents to, or acquiesces in, or joins in, an application for the
appointment of a custodian, receiver, trustee, or examiner for Borrowers (or any
of them) or any portion of any Individual Property or the Collateral;

     (viii) Borrowers (or any of them) make an assignment for the benefit of
creditors or admit, in writing or in any legal proceeding, its/their insolvency
or inability to pay its/their debts as they become due, or

     (ix) if either or both Guarantors (or any Person comprising either or both
Guarantors), Borrowers (or any of them) or any Affiliate of any of the
foregoing, in connection with any enforcement action or exercise or assertion of
any right or remedy by or on behalf of Lender under or in connection with this
Guaranty, the Notes, the Pledges or any other Mezzanine Loan Document, seeks a
defense, judicial intervention or injunctive or other equitable relief of any
kind, or asserts in a pleading filed in connection with a judicial proceeding
any defense against Lender or any right in connection with any security for the
Loan, which the court in any such action or proceeding determines is without
merit (in the case of a defense) or is unwarranted (in the case of a request for
judicial intervention or injunctive or other equitable relief); provided,
however, that Borrowers shall be entitled to assert a good faith defense of
payment or performance of the obligations in question without incurring recourse
hereunder.

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     (c)    The obligations of Guarantors set forth in clauses (a) and (b) of
this Section 1.2, as and to the extent set forth in said clauses (a) and (b) of
this Section 1.2, are hereinafter collectively referred to as the "GUARANTEED
OBLIGATIONS".

     (d)    Notwithstanding anything to the contrary in this Guaranty or in any
of the other Mezzanine Loan Documents, Lender shall not be deemed to have waived
any right which Lender may have under Section 506(a), 506(b), 1111(b) or any
other provisions of the Bankruptcy Code to file a claim for the full amount of
the Obligations or to require that all collateral shall continue to secure all
of the Obligations owing to Lender in accordance with the Mezzanine Loan
Documents.

     Section 1.3    NATURE OF GUARANTY. This Guaranty is an irrevocable,
absolute, continuing guaranty of payment and performance and not a guaranty of
collection. This Guaranty may not be revoked by either or both Guarantors and
shall continue to be effective with respect to any Guaranteed Obligations
arising or created after any attempted revocation by either or both Guarantors
and after (if either or both Guarantors is a natural person) either or both
Guarantors' death (in which event this Guaranty shall be binding upon such
Guarantor's estate and such Guarantor's legal representatives and heirs). The
fact that at any time or from time to time the Guaranteed Obligations may be
increased or reduced shall not release or discharge the obligation of Guarantors
to Lender with respect to the outstanding Guaranteed Obligations. This Guaranty
may be enforced by Lender and any subsequent holder of any or all of the Notes
and shall not be discharged by the assignment or negotiation of all or part of
any or all of the Notes.

     Section 1.4    GUARANTEED OBLIGATIONS NOT REDUCED BY OFFSET. The Guaranteed
Obligations and the liabilities and obligations of Guarantors to Lender
hereunder shall not be reduced, discharged or released because or by reason of
any existing or future offset, claim or defense of any or all of the Borrowers
or any other party against Lender or against payment of the Guaranteed
Obligations, whether such offset, claim or defense arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed Obligations)
or otherwise.

     Section 1.5    PAYMENT BY GUARANTOR. If all or any part of the Guaranteed
Obligations shall not be punctually paid within five (5) days from when due,
whether at demand, maturity, acceleration or otherwise, Guarantors shall,
immediately upon demand by Lender and without presentment, protest, notice of
protest, notice of non-payment, notice of intention to accelerate the maturity,
notice of acceleration of the maturity or any other notice whatsoever, all such
notices being hereby waived by each Guarantor, pay in lawful money of the United
States of America, the amount due on the Guaranteed Obligations to Lender at
Lender's address as set forth herein. Such demand(s) may be made at any time
coincident with or after the time for payment of all or part of the Guaranteed
Obligations and may be made from time to time with respect to the same or
different items of Guaranteed Obligations. Such demand shall be deemed made,
given and received in accordance with the notice provisions hereof.

     Section 1.6    NO DUTY TO PURSUE OTHERS. It shall not be necessary for
Lender (and each Guarantor hereby waives any rights which such Guarantor may
have to require Lender), in order to enforce the obligations of Guarantors
hereunder, first to (i) institute suit or exhaust its remedies

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against any or all of the Borrowers or others liable on the Loan or the
Guaranteed Obligations or any other Person, (ii) enforce Lender's rights against
any collateral which shall ever have been given to secure the Loan, (iii)
enforce Lender's rights against any other guarantors of the Guaranteed
Obligations, (iv) join any or all of the Borrowers or any others liable on the
Guaranteed Obligations in any action seeking to enforce this Guaranty, (v)
exhaust any remedies available to Lender against any collateral which shall ever
have been given to secure the Loan, or (vi) resort to any other means of
obtaining payment of the Guaranteed Obligations. Lender shall not be required to
mitigate damages or take any other action to reduce, collect or enforce the
Guaranteed Obligations.

     Section 1.7    WAIVERS. Each Guarantor agrees to the provisions of the
Mezzanine Loan Documents and hereby waives notice of (i) any loans or advances
made by Lender to Borrowers, (ii) acceptance of this Guaranty, (iii) any
amendment or extension of any or all of the Notes, the Pledges, the Mezzanine
Loan Agreement or any other Mezzanine Loan Document, (iv) the execution and
delivery by any or all of the Borrowers and Lender of any other loan or credit
agreement or of any or all of the Borrowers' execution and delivery of any
promissory note or other document arising under the Mezzanine Loan Documents or
in connection with any Individual Property, (v) the occurrence of (A) any breach
by any or all of the Borrowers of any of the terms or conditions of the
Mezzanine Loan Agreement or any of the other Mezzanine Loan Documents, or (B) an
Event of Default, (vi) Lender's transfer or disposition of the Guaranteed
Obligations, or any part thereof, (vii) the sale or foreclosure (or the posting
or advertising for the sale or foreclosure) of any collateral for the Guaranteed
Obligations, (viii) protest, proof of non-payment or default by any or all of
the Borrowers, or (ix) any other action at any time taken or omitted by Lender
and, generally, all demands and notices of every kind in connection with this
Guaranty, the Mezzanine Loan Documents, any documents or agreements evidencing,
securing or relating to any of the Guaranteed Obligations and/or the obligations
hereby guaranteed.

     Section 1.8    PAYMENT OF EXPENSES. In the event that either or both
Guarantors shall breach in any material respect or fail to timely perform any
provisions of this Guaranty, Guarantors shall, immediately upon demand by
Lender, pay Lender all costs and expenses (including court costs and reasonable
attorneys' fees) incurred by Lender in the enforcement hereof or the
preservation of Lender's rights hereunder, together with interest thereon at the
Default Rate from the date requested by Lender until the date of payment to
Lender. The covenant contained in this Section shall survive the payment and
performance of the Guaranteed Obligations.

     Section 1.9    EFFECT OF BANKRUPTCY. In the event that pursuant to any
insolvency, bankruptcy, reorganization, receivership or other debtor relief law
or any judgment, order or decision thereunder, Lender must rescind or restore
any payment or any part thereof received by Lender in satisfaction of the
Guaranteed Obligations, as set forth herein, any prior release or discharge from
the terms of this Guaranty given to either or both Guarantors by Lender shall be
without effect and this Guaranty shall remain (or shall be reinstated to be) in
full force and effect. It is the intention of Borrowers and Guarantors that
Guarantors' obligations hereunder shall not be discharged except by Guarantors'
performance of such obligations and then only to the extent of such performance.

     Section 1.10   WAIVER OF SUBROGATION, REIMBURSEMENT AND CONTRIBUTION.
Notwithstanding anything to the contrary contained in this Guaranty, each
Guarantor hereby unconditionally and

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irrevocably waives, releases and abrogates any and all rights it may now or
hereafter have under any agreement, at law or in equity (including, without
limitation, any law subrogating either or both Guarantors to the rights of
Lender), to assert any claim against or seek contribution, indemnification or
any other form of reimbursement from any or all of the Borrowers or any other
party liable for the payment of any or all of the Guaranteed Obligations for any
payment made by either or both Guarantors under or in connection with this
Guaranty or otherwise.

                                    ARTICLE 2
                      EVENTS AND CIRCUMSTANCES NOT REDUCING
                     OR DISCHARGING GUARANTOR'S OBLIGATIONS

     Guarantors hereby consent and agree to each of the following and agree that
Guarantors' obligations under this Guaranty shall not be released, diminished,
impaired, reduced or adversely affected by any of the following and waives any
common law, equitable, statutory or other rights (including, without limitation,
rights to notice) which either or both Guarantors might otherwise have as a
result of or in connection with any of the following:

     Section 2.1    MODIFICATIONS. Any renewal, extension, increase,
modification, alteration or rearrangement of all or any part of the Guaranteed
Obligations, the Notes, the Pledges, the Mezzanine Loan Agreement, the other
Mezzanine Loan Documents or any other document, instrument, contract or
understanding between any or all of the Borrowers and Lender or any other
parties pertaining to the Guaranteed Obligations or any failure of Lender to
notify either or both Guarantors of any such action.

     Section 2.2    ADJUSTMENT. Any adjustment, indulgence, forbearance or
compromise that might be granted or given by Lender to any or all of the
Borrowers or either or both Guarantors.

     Section 2.3    CONDITION OF BORROWERS OR GUARANTORS. The insolvency,
bankruptcy, arrangement, adjustment, composition, liquidation, disability,
dissolution or lack of power of any Borrower, either or both Guarantors or any
other Person at any time liable for the payment of all or part of the Guaranteed
Obligations; or any dissolution of any Borrower or either or both Guarantors or
any sale, lease or transfer of any or all of the assets of any Borrower or
either or both Guarantors or any changes in the direct or indirect shareholders,
partners or members, as applicable, of any Borrower or either or both
Guarantors; or any reorganization of any Borrower or either or both Guarantors.

     Section 2.4    INVALIDITY OF GUARANTEED OBLIGATIONS. The invalidity,
illegality or unenforceability of all or any part of the Guaranteed Obligations
or any document or agreement executed in connection with the Guaranteed
Obligations for any reason whatsoever, including, without limitation, the fact
that (i) the Guaranteed Obligations or any part thereof exceeds the amount
permitted by law, (ii) the act of creating the Guaranteed Obligations or any
part thereof is ultra vires, (iii) the officers or representatives executing the
Notes, the Pledges, the Mezzanine Loan Agreement or the other Mezzanine Loan
Documents or otherwise creating the Guaranteed Obligations acted in excess of
their authority, (iv) the Guaranteed Obligations violate applicable usury laws,
(v) any Borrower has valid defenses, claims or offsets (whether at law, in
equity or by agreement) which render the Guaranteed Obligations wholly or
partially uncollectible from any

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Borrower, (vi) the creation, performance or repayment of the Guaranteed
Obligations (or the execution, delivery and performance of any document or
instrument representing part of the Guaranteed Obligations or executed in
connection with the Guaranteed Obligations or given to secure the repayment of
the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (vii)
any Note, any Pledge, the Mezzanine Loan Agreement or any of the other Mezzanine
Loan Documents have been forged or otherwise are irregular or not genuine or
authentic, it being agreed that Guarantors shall remain liable hereon regardless
of whether any Borrower or any other Person be found not liable on the
Guaranteed Obligations or any part thereof for any reason.

     Section 2.5    RELEASE OF OBLIGORS. Any full or partial release of the
liability of any Borrower for the Guaranteed Obligations or any part thereof, or
of any co-guarantors, or of any other Person now or hereafter liable, whether
directly or indirectly, jointly, severally, or jointly and severally, to pay,
perform, guarantee or assure the payment of the Guaranteed Obligations, or any
part thereof, it being recognized, acknowledged and agreed by GUARANTORS THAT
GUARANTORS MAY be required to pay the Guaranteed Obligations in full without
assistance or support from any other Person, and neither Guarantor has been
induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that other Persons (including Borrower) will be
liable to pay or perform the Guaranteed Obligations or that Lender will look to
other Persons (including any Borrower) to pay or perform the Guaranteed
Obligations.

     Section 2.6    OTHER COLLATERAL. The taking or accepting of any other
security, collateral or guaranty, or other assurance of payment, for all or any
part of the Guaranteed Obligations.

     Section 2.7    RELEASE OF COLLATERAL. Any release, surrender, exchange,
subordination, deterioration, waste, loss or impairment (including, without
limitation, negligent, willful, unreasonable or unjustifiable impairment) of any
collateral, property or security at any time existing in connection with, or
assuring or securing payment of, all or any part of the Guaranteed Obligations.

     Section 2.8    CARE AND DILIGENCE. The failure of Lender or any other party
to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of any
collateral, property or security, including, but not limited to, any neglect,
delay, omission, failure or refusal of Lender (i) to take or prosecute any
action for the collection of any of the Guaranteed Obligations, or (ii) to
foreclose, or initiate any action to foreclose, or, once commenced, prosecute to
completion any action to foreclose upon any security therefor, or (iii) to take
or prosecute any action in connection with any instrument or agreement
evidencing or securing all or any part of the Guaranteed Obligations.

     Section 2.9    UNENFORCEABILITY. The fact that any collateral, security,
security interest or lien contemplated or intended to be given, created or
granted as security for the repayment of the Guaranteed Obligations, or any part
thereof, shall not be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other security interest or lien, it being
recognized and agreed by Guarantors that Guarantors are not entering into this
Guaranty in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectibility or value of any of the collateral for the
Guaranteed Obligations.

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     Section 2.10   OFFSET. The Notes, the Guaranteed Obligations and the
liabilities and obligations of Guarantors to Lender hereunder shall not be
reduced, discharged or released because of or by reason of any existing or
future right of offset, claim or defense of any Borrower against Lender, or any
other party, or against payment of the Guaranteed Obligations, whether such
right of offset, claim or defense arises in connection with the Guaranteed
Obligations (or the transactions creating the Guaranteed Obligations) or
otherwise.

     Section 2.11   MERGER. The reorganization, merger or consolidation of any
Borrower or either or both Guarantors into or with any other Person.

     Section 2.12   PREFERENCE. Any payment by any Borrower to Lender is held to
constitute a preference under bankruptcy laws or for any reason Lender is
required to refund such payment or pay such amount to any Borrower or to any
other Person.

     Section 2.13   OTHER ACTIONS TAKEN OR OMITTED. Any other action taken or
omitted to be taken with respect to the Mezzanine Loan Documents, the Guaranteed
Obligations or the security and collateral therefor, whether or not such action
or omission prejudices either or both Guarantors or increases the likelihood
that either or both Guarantors will be required to pay the Guaranteed
Obligations pursuant to the terms hereof, it being the unambiguous and
unequivocal intention of Guarantors that Guarantors shall be obligated to pay
the Guaranteed Obligations when due, notwithstanding any occurrence,
circumstance, event, action or omission whatsoever, whether contemplated or
uncontemplated, and whether or not otherwise or particularly described herein,
which obligation shall be deemed satisfied only upon the full and final payment
and satisfaction of the Guaranteed Obligations.

                                    ARTICLE 3
                         REPRESENTATIONS AND WARRANTIES

     To induce Lender to enter into the Mezzanine Loan Documents and to extend
credit to Borrowers, each Guarantor represents and warrants to Lender as
follows:

     Section 3.1    BENEFIT. Each Guarantor is an Affiliate of each of the
Borrowers, is the owner of a direct or indirect interest in each of the
Borrowers and has received, or will receive, direct or indirect benefit from the
making of this Guaranty with respect to the Guaranteed Obligations.

     Section 3.2    FAMILIARITY AND RELIANCE. Each Guarantor is familiar with,
and has independently reviewed books and records regarding, the financial
condition of Borrowers and is familiar with the value of any and all collateral
intended to be created as security for the payment of the Notes or Guaranteed
Obligations; however, neither Guarantor is relying on such financial condition
or the collateral as an inducement to enter into this Guaranty.

     Section 3.3    NO REPRESENTATION BY LENDER. Neither Lender nor any other
party has made any representation, warranty or statement to either or both
Guarantors in order to induce either or both Guarantors to execute this
Guaranty.

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     Section 3.4    GUARANTOR'S FINANCIAL CONDITION. As of the date hereof, and
after giving effect to this Guaranty and the contingent obligation evidenced
hereby, each Guarantor (a) is and will be solvent, (b) has and will have assets
which, fairly valued, exceed its obligations, liabilities (including contingent
liabilities) and debts, and (c) has and will have property and assets sufficient
to satisfy and repay its obligations and liabilities, including the Guaranteed
Obligations.

     Section 3.5    LEGALITY. The execution, delivery and performance by each
Guarantor of this Guaranty and the consummation of the transactions contemplated
hereunder do not and will not contravene or conflict with any law, statute or
regulation whatsoever to which such Guarantor is subject, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the breach of, any indenture,
mortgage, charge, lien, contract, agreement or other instrument to which such
Guarantor is a party or which may be applicable to such Guarantor. This Guaranty
is a legal and binding obligation of each Guarantor and is enforceable against
each Guarantor in accordance with its terms, except as limited by bankruptcy,
insolvency or other laws of general application relating to the enforcement of
creditors' rights.

     Section 3.6    SURVIVAL. All representations and warranties made by each
Guarantor herein shall survive the execution hereof.

                                    ARTICLE 4
                      SUBORDINATION OF CERTAIN INDEBTEDNESS

     Section 4.1    SUBORDINATION OF ALL GUARANTOR CLAIMS. As used herein, the
term "GUARANTOR CLAIMS" shall mean all debts and liabilities of any or all of
the Borrower to either or both Guarantors, whether such debts and liabilities
now exist or are hereafter incurred or arise, and whether the obligations of any
or all of the Borrowers thereon be direct, contingent, primary, secondary,
several, joint and several, or otherwise, and whether such debts or liabilities
be evidenced by note, contract, open account, or otherwise, and irrespective of
the Person or Persons in whose favor such debts or liabilities may, at their
inception, have been, or may hereafter be, created, or the manner in which they
have been, or may hereafter be, acquired by either or both Guarantors. The
Guarantor Claims shall include, without limitation, all rights and claims of
either or both Guarantors against any or all of the Borrowers (arising as a
result of subrogation or otherwise) as a result of either or both Guarantors'
payment of all or a portion of the Guaranteed Obligations. So long as any
portion of the Obligations or the Guaranteed Obligations remain outstanding,
neither Guarantor shall receive or collect, directly or indirectly, from any
Borrower or any other Person any amount upon the Guarantor Claims.

     Section 4.2    CLAIMS IN BANKRUPTCY. In the event of any receivership,
bankruptcy, reorganization, arrangement, debtor's relief or other insolvency
proceeding involving either or both Guarantors as a debtor, Lender shall have
the right to prove its claim in any such proceeding so as to establish its
rights hereunder and receive directly from the receiver, trustee or other court
custodian dividends and payments which would otherwise be payable upon Guarantor
Claims. Each Guarantor hereby assigns such dividends and payments to Lender.
Should Lender receive, for application against the Guaranteed Obligations, any
dividend or payment which is otherwise payable to either or both Guarantors and
which, as among any or all of the Borrowers and either or both Guarantors, shall

                                       434
<Page>

constitute a credit against the Guarantor Claims, then, upon payment to Lender
in full of the Obligations and the Guaranteed Obligations, such Guarantor shall
become subrogated to the rights of Lender to the extent that such payments to
Lender on the Guarantor Claims have contributed toward the liquidation of the
Guaranteed Obligations, and such subrogation shall be with respect to that
proportion of the Guaranteed Obligations which would have been unpaid if Lender
had not received dividends or payments upon the Guarantor Claims.

     Section 4.3    PAYMENTS HELD IN TRUST. Notwithstanding anything to the
contrary contained in this Guaranty, in the event that either or both Guarantors
should receive any funds, payments, claims and/or distributions which are
prohibited by this Guaranty, each Guarantor agrees to hold in trust for Lender
an amount equal to the amount of all funds, payments, claims and/or
distributions so received, and agrees that it shall have absolutely no dominion
over the amount of such funds, payments, claims and/or distributions so received
except to pay such funds, payments, claims and/or distributions promptly to
Lender, and each Guarantor covenants promptly to pay the same to Lender.

     Section 4.4    LIENS SUBORDINATE. Guarantors agree that any liens, security
interests, judgment liens, charges or other encumbrances upon any Borrower's
assets securing payment of the Guarantor Claims shall be and remain inferior and
subordinate to any liens, security interests, judgment liens, charges or other
encumbrances upon any Borrower's assets securing payment of the Guaranteed
Obligations, regardless of whether such encumbrances in favor of either or both
Guarantors or Lender presently exist or are hereafter created or attach. Without
the prior written consent of Lender, neither Guarantor shall (i) exercise or
enforce any creditor's rights it may have against any Borrower, or (ii)
foreclose, repossess, sequester or otherwise take steps or institute any action
or proceedings (judicial or otherwise, including, without limitation, the
commencement of, or the joinder in, any liquidation, bankruptcy, rearrangement,
debtor's relief or insolvency proceeding) to enforce any liens, mortgages, deeds
of trust, security interests, collateral rights, judgments or other encumbrances
on the assets of any Borrower held by such Guarantor. The foregoing shall in no
manner vitiate or amend, nor be deemed to vitiate or amend, any prohibition in
the Mezzanine Loan Documents against Borrowers granting liens or security
interests in any of its assets to any Person other than Lender.

                                    ARTICLE 5
                              INTENTIONALLY OMITTED

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1    WAIVER. No failure to exercise, and no delay in exercising,
on the part of Lender, any right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right. The rights of Lender
hereunder shall be in addition to all other rights provided by law. No
modification or waiver of any provision of this Guaranty, nor any consent to any
departure therefrom, shall be effective unless in writing and no such consent or
waiver shall extend beyond the particular case and purpose involved. No notice
or demand given in any case shall constitute a waiver of the right to take other

                                       435
<Page>

action in the same, similar or other instances without such notice or demand.

     Section 6.2    NOTICES. All notices, demands, requests, consents, approvals
or other communications (any of the foregoing, a "Notice") required, permitted
or desired to be given hereunder shall be in writing and shall be sent by
telefax (with answer back acknowledged) or by registered or certified mail,
postage prepaid, return receipt requested, or delivered by hand or by reputable
overnight courier, addressed to the party to be so notified at its address
hereinafter set forth, or to such other address as such party may hereafter
specify in accordance with the provisions of this SECTION 6.2. Any Notice shall
be deemed to have been received: (a) three (3) days after the date such Notice
is mailed, (b) on the date of sending by telefax if sent during business hours
on a Business Day (otherwise on the next Business Day), (c) on the date of
delivery by hand if delivered during business hours on a Business Day (otherwise
on the next Business Day), and (d) on the next Business Day if sent by an
overnight commercial courier, in each case addressed to the parties as follows:

If to Lender:       UBS Warburg Real Estate Investments Inc.
                    1285 Avenue of the Americas
                    11th Floor
                    New York, New York 10019
                    Attention:  Andrew B. Cohen
                    Fax No.  (212) 713-4631

with a copy to:     Brown Raysman Millstein Felder & Steiner LLP
                    900 Third Avenue
                    New York, New York 10022
                    Attention:  Jeffrey B. Steiner, Esq.
                    Fax No.  (212) 895-2900

and with a copy to: Wachovia Bank, National Association
                    8739 Research Drive, URP4
                    Charlotte, North Carolina 28288-1075
                    Attn:  David Tucker
                    Fax No.:  (704) 593-7735]

If to Guarantors:   c/o Horizon Group Properties, Inc.
                    77 West Wacker Drive
                    Suite 4200
                    Chicago, Illinois 60601
                    Attention:  Mr. David Tinkham
                    Fax No.:  (231) 798-5100

And with a copy to: c/o Horizon Group Properties Inc.
                    5000 Hakes Drive
                    Muskegon, MI 49441
                    Attention:  Ms. Terri Springstead

                                       436
<Page>

                    Fax No.:  (231) 798 5100

And with a copy to: Schiff Hardin & Waite
                    7300 Sears Tower
                    Chicago, Illinois 60606
                    Attention: David A. Grossberg, Esq.
                    Fax No.: (312) 258-5700

Any party may change the address to which any such Notice is to be delivered by
furnishing ten (10) days' written notice of such change to the other parties in
accordance with the provisions of this SECTION 6.2. Notices shall be deemed to
have been given on the date set forth above, even if there is an inability to
actually deliver any Notice because of a changed address of which no Notice was
given or there is a rejection or refusal to accept any Notice offered for
delivery. Notice for any party may be given by its respective counsel.
Additionally, Notice from Lender may also be given by Servicer.

     Section 6.3    GOVERNING LAW; JURISDICTION; SERVICE OF PROCESS. (a) THIS
GUARANTY WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY GUARANTORS AND
ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE WERE
DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A
SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
RELEATED HERETO, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
GUARANTY AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF
CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT
THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION AND ENFORCEMENT OF
THE LIENS AND SECURITY INTERESTS CREATED PURSUANT TO THE MEZZANINE LOAN
DOCUMENTS WITH RESPECT TO THE PROPERTY SHALL BE GOVERNED BY, AND CONSTRUED
ACCORDING TO, THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN
WHICH THE APPLICABLE INDIVIDUAL PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT,
TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, COMMONWEALTH OR
DISTRICT, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION,
VALIDITY AND ENFORCEABILITY OF ALL MEZZANINE LOAN DOCUMENTS AND ALL OF THE
OBLIGATIONS ARISING HEREUNDER AND THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY
LAW, EACH GUARANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO
ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY AND/OR THE
OTHER MEZZANINE LOAN DOCUMENTS, AND THIS GUARANTY AND THE OTHER MEZZANINE LOAN
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE

                                       437
<Page>

STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW.

          (b)  ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR EITHER OR
BOTH GUARANTORS ARISING OUT OF OR RELATING TO THIS GUARANTY MAY, AT LENDER'S
OPTION, BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK,
COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW AND EACH GUARANTOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR
HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT,
ACTION OR PROCEEDING, AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. GUARANTOR DOES
HEREBY DESIGNATE AND APPOINT:

               SCHIFF HARDIN & WAITE
               150 EAST 52ND STREET, SUITE 2700
               NEW YORK, NEW YORK 10022
               ATTENTION: DAVID A. GROSSBERG, ESQ. (CHICAGO OFFICE)

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY
AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN
ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF
PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE
MAILED OR DELIVERED TO IT IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY
RESPECT EFFECTIVE SERVICE OF PROCESS UPON IT IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. EACH GUARANTOR (I) SHALL GIVE PROMPT NOTICE
TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT
ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN
OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE
DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS AND WHICH SUBSTITUTE
AGENT SHALL BE THE SAME AGENT DESIGNATED BY BORROWER UNDER THE MEZZANINE LOAN
AGREEMENT) PROVIDED THERE SHALL ALWAYS BE THE SAME AUTHORIZED AGENT FOR BOTH
GUARANTORS, AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED
WITHOUT LEAVING A SUCCESSOR PROVIDED THERE SHALL ALWAYS BE THE SAME AUTHORIZED
AGENT FOR BOTH GUARANTORS. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF
LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST EITHER OR BOTH GUARANTORS IN ANY
OTHER JURISDICTION.

                                       438
<Page>

     Section 6.4    INVALID PROVISIONS. If any provision of this Guaranty is
held to be illegal, invalid, or unenforceable under present or future laws
effective during the term of this Guaranty, such provision shall be fully
severable and this Guaranty shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part of this Guaranty,
and the remaining provisions of this Guaranty shall remain in full force and
effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance from this Guaranty, unless such continued
effectiveness of this Guaranty, as modified, would be contrary to the basic
understandings and intentions of the parties as expressed herein.

     Section 6.5    AMENDMENTS. This Guaranty may be amended only by an
instrument in writing executed by the party(ies) against whom such amendment is
sought to be enforced.

     Section 6.6    PARTIES BOUND; ASSIGNMENT. This Guaranty shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors, permitted assigns, heirs and legal representatives. Lender shall
have the right to assign or transfer its rights under this Guaranty in
connection with any assignment of the Loan and the Mezzanine Loan Documents. Any
assignee or transferee of Lender shall be entitled to all the benefits afforded
to Lender under this Guaranty. Guarantor shall not have the right to assign or
transfer its rights or obligations under this Assignment without the prior
written consent of Lender, and any attempted assignment without such consent
shall be null and void.

     Section 6.7    HEADINGS. Section headings are for convenience of reference
only and shall in no way affect the interpretation of this Guaranty.

     Section 6.8    RECITALS. The recitals and introductory paragraphs hereof
are a part hereof, form a basis for this Guaranty and shall be considered PRIMA
FACIE evidence of the facts and documents referred to therein.

     Section 6.9    COUNTERPARTS. To facilitate execution, this Guaranty may be
executed in as many counterparts as may be convenient or required. It shall not
be necessary that the signature of, or on behalf of, each party, or that the
signature of all persons required to bind any party, appear on each counterpart.
All counterparts shall collectively constitute a single instrument. It shall not
be necessary in making proof of this Guaranty to produce or account for more
than a single counterpart containing the respective signatures of, or on behalf
of, each of the parties hereto. Any signature page to any counterpart may be
detached from such counterpart without impairing the legal effect of the
signatures thereon and thereafter attached to another counterpart identical
thereto except having attached to it additional signature pages.

     Section 6.10   RIGHTS AND REMEDIES. If either or both Guarantors become
liable for any indebtedness owing by Borrowers to Lender, by endorsement or
otherwise, other than under this Guaranty, such liability shall not be in any
manner impaired or affected hereby and the rights of Lender hereunder shall be
cumulative of any and all other rights that Lender may ever have against
Guarantors. The exercise by Lender of any right or remedy hereunder or under any
other instrument, or at law or in equity, shall not preclude the concurrent or
subsequent exercise of any other right or remedy.

                                       439
<Page>

     Section 6.11   ENTIRETY. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT
OF GUARANTORS AND LENDER WITH RESPECT TO EACH GUARANTOR'S GUARANTY OF THE
GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE
SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTORS AND LENDER AS A
FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF
DEALING BETWEEN EITHER OR BOTH GUARANTORS AND LENDER, NO COURSE OF PERFORMANCE,
NO TRADE PRACTICES AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE
USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY. THERE
ARE NO ORAL AGREEMENTS BETWEEN EITHER OR BOTH GUARANTORS AND LENDER.

     Section 6.12   WAIVER OF RIGHT TO TRIAL BY JURY. EACH GUARANTOR HEREBY
AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND
WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL
NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTES, THE PLEDGES, THE
MEZZANINE LOAN AGREEMENT OR THE OTHER MEZZANINE LOAN DOCUMENTS, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF
RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH GUARANTOR AND
IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH
THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF
THIS WAIVER BY EACH GUARANTOR.

     Section 6.13   COOPERATION. Each Guarantor acknowledges that Lender and its
successors and assigns may (i) sell this Guaranty, any or all of the Notes and
the other Mezzanine Loan Documents to one or more investors as a whole loan,
(ii) participate the Loan secured by this Guaranty to one or more investors,
(iii) deposit this Guaranty, any or all of the Notes and the other Mezzanine
Loan Documents with a trust, which trust may sell certificates to investors
evidencing an ownership interest in the trust assets, or (iv) otherwise sell the
Loan or one or more interests therein to investors (the transactions referred to
in clauses (i) through (iv) are hereinafter each referred to as "Secondary
Market Transaction"). Guarantors shall cooperate with Lender in effecting any
such Secondary Market Transaction and shall cooperate to implement all
requirements imposed by any of the Rating Agencies involved in any Secondary
Market Transaction. Guarantors shall provide such reasonable information and
documents relating to Guarantors, Borrowers, the Properties and any tenants of
the Properties as Lender may reasonably request in connection with such
Secondary Market Transaction. In addition, Guarantors shall make available to
Lender all information concerning its business and operations that Lender may
reasonably request. Lender shall be permitted to share all such information with
the investment banking firms, Rating Agencies,

                                       440
<Page>

accounting firms, law firms and other third-party advisory firms involved with
the Loan and the Mezzanine Loan Documents or the applicable Secondary Market
Transaction. It is understood that the information provided by Guarantors to
Lender, including any and all financial statements provided to Lender pursuant
to SECTION 5.2 hereof, may ultimately be incorporated into the offering
documents for the Secondary Market Transaction and thus various investors and
potential investors may also see some or all of the information. Lender and all
of the aforesaid third-party advisors and professional firms shall be entitled
to rely on the information supplied by, or on behalf of, Guarantors in the form
as provided by Guarantors. Lender may publicize the existence of the Loan in
connection with its marketing for a Secondary Market Transaction or otherwise as
part of its business development.

     Section 6.14   REINSTATEMENT IN CERTAIN CIRCUMSTANCES. If at any time any
payment of the principal of or interest under any or all of the Notes or any
other amount payable by any or all of Borrowers under the Mezzanine Loan
Documents is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of the any or all of the Borrowers or
otherwise, Guarantors' obligations hereunder with respect to such payment shall
be reinstated as though such payment had been due but not made at such time.

     Section 6.15   GENDER; NUMBER; GENERAL DEFINITIONS. Unless the context
clearly indicates a contrary intent or unless otherwise specifically provided
herein, (a) words used in this Guaranty may be used interchangeably in the
singular or plural form, (b) any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, (c) the word "Borrower" shall
mean "each Borrower and any subsequent owner or owners of the Property or any
part thereof or interest therein", (d) the word "Lender" shall mean "Lender and
any subsequent holder of any or all of the Notes", (e) the word "Note" or
"Notes" shall mean "the Note (or Notes) and any other evidence of indebtedness
secured by the Mezzanine Loan Agreement", (f) the word "Property" or
"Properties" shall include any portion of any Individual Property or the
Properties and any interest therein, and (g) the phrases "attorneys' fees",
"legal fees" and "counsel fees" shall include any and all attorneys', paralegal
and law clerk fees and disbursements, including, but not limited to, fees and
disbursements at the pre-trial, trial and appellate levels, incurred or paid by
Lender in protecting its interest in the Property, the Leases and/or the Rents
and/or in enforcing its rights hereunder.

     Section 6.16   JOINT AND SEVERAL. If there is more than one Guarantor, the
obligations of each such Guarantor shall be joint and several.

                         [NO FURTHER TEXT ON THIS PAGE]

                                       441
<Page>

     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and
year first above written.

                                  HORIZON GROUP PROPERTIES, INC.,
                                  a Maryland corporation

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

                                  HORIZON GROUP PROPERTIES, L.P.,
                                  a Delaware limited partnership

                                  By: Horizon Group Properties, Inc., a Maryland
                                   corporation, its General Partner

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

                                       442<Page>

                                  EXHIBIT 10.69

                          PLEDGE AND SECURITY AGREEMENT

     THIS PLEDGE AND SECURITY AGREEMENT (this "AGREEMENT"), is made as of July
___, 2002, by LAUGHLIN HOLDINGS LLC, a Delaware limited liability company,
having its principal place of business at c/o Horizon Group Properties, Inc., 77
West Wacker Drive, Suite 4200, Chicago, Illinois 60601 (together with its
successors and assigns, "PLEDGOR") for the benefit of UBS WARBURG REAL ESTATE
INVESTMENTS INC., a Delaware corporation, having an address at 1285 Avenue of
the Americas, 11th Floor, New York, New York 10019 (together with its successors
and assigns, collectively, "LENDER").

                                    RECITALS

     A.   Pledgor is the sole equity member in Laughlin Outlet Center LLC, a
Delaware limited liability company (the "Company").

     B.   Pledgor, Medford Holdings LLC and Warrenton Holdings LLC and Lender
have entered into a Mezzanine Loan Agreement of even date herewith (as the same
may be amended, restated, replaced, supplemented or otherwise modified from time
to time, the "MEZZANINE LOAN AGREEMENT"). Capitalized terms not otherwise
defined herein shall have the meaning set forth in the Mezzanine Loan Agreement.

     C.   Under the provisions of the Mezzanine Loan Agreement, Lender agreed,
subject to the terms and conditions contained therein, to make a loan ("LAUGHLIN
LOAN") to Pledgor as evidenced by that certain Promissory Note of even date
herewith made by Pledgor to the order of Lender in the original maximum
principal amount of One Million Seven Hundred Fifty Thousand and No/100 Dollars
($1,750,000.00) (as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, the "LAUGHLIN NOTE").

     D.   As a condition precedent to Lender's making the Laughlin Loan, Lender
has required that Pledgor execute and deliver this Agreement to Lender.

               NOW, THEREFORE, for Ten Dollars ($10.00) and in consideration of
the mutual covenants and agreements herein contained, and other good and
valuable consideration, the receipt and sufficiency of which being hereby
acknowledged, the Pledgor agrees as follows:

          1. DEFINED TERMS. Unless otherwise provided herein, all capitalized
terms used but not defined in this Agreement shall have the respective meanings
ascribed thereto in the Mezzanine Loan Agreement and, for the purposes of this
Agreement, the following capitalized terms shall have the following meanings:

               (a)  "ASSIGNMENT OF INTEREST" shall have the meaning ascribed
thereto in SECTION 2 hereof.

                                       443
<Page>

               (b)  "CHARTER DOCUMENTS" shall mean the agreements and
instruments listed on EXHIBIT A hereto, as each of the same may hereafter be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

               (c)  "COLLATERAL" shall have the meaning ascribed thereto in
SECTION 2 hereof.

               (d)  "OBLIGATIONS" shall mean all of the obligations of Pledgor
under the Laughlin Note, the Mezzanine Loan Agreement, this Agreement and the
other Mezzanine Loan Documents.

               (e)  "OTHER COLLATERAL" shall have the meaning ascribed thereto
in SECTION 4.7 hereof.

               (f)  "OTHER SECURITY DOCUMENTS" shall have the meaning ascribed
thereto in SECTION 4.7 hereof.

               (g)  "PLEDGED INTERESTS" shall have the meaning ascribed thereto
in SECTION 2 hereof.

               (h)  "UNIFORM COMMERCIAL CODE" shall mean the Uniform Commercial
Code as in effect from time to time in the state of New York.

          2. PLEDGE AND DELIVERY OF COLLATERAL.

               (a)  THE PLEDGE. As collateral security for the prompt payment in
full when due (whether at stated maturity, by acceleration or otherwise) of the
Obligations, Pledgor hereby pledges and grants to Lender as hereinafter
provided, a security interest in all of Pledgor's right, title and interest in
the following property, whether now owned by Pledgor or hereafter acquired and
whether now existing or hereafter coming into existence (all being collectively
referred to herein as "COLLATERAL"):

                        (i)    its ownership, partnership or membership
interests in the Company held by Pledgor, together with the certificates (if
any) evidencing the same (the "PLEDGED INTERESTS");

                        (ii)   all ownership interests, membership interests,
shares, securities, moneys, instruments or property representing a dividend, a
distribution or return of capital upon or in respect of the Pledged Interests,
or otherwise received in exchange therefor, and any warrants, rights or options
issued to the holders of, or otherwise in respect of, the Pledged Interests;

                        (iii)  all rights of Pledgor under the Charter Documents
or any other agreement or instrument relating to the Pledged Interests,
including, without limitation, (i) all rights of Pledgor to receive moneys or
distributions with respect to the Pledged Interests due and to become due under
or pursuant to the Charter Documents, (ii) all rights of Pledgor to receive
proceeds of any

                                       444
<Page>

insurance, indemnity, warranty or guaranty with respect to the Pledged
Interests, (iii) all claims of Pledgor for damages arising out of or for breach
of or default under a Charter Document, and (iv) any right of Pledgor to perform
thereunder and to compel performance and otherwise exercise all rights and
remedies thereunder; and

                        (iv)   all proceeds of and to any of the property of
Pledgor described in clauses (i) through (iii) above and, to the extent related
to any property described in said clauses or such proceeds, all books,
correspondence, credit files, records, invoices and other papers.

               (b)  DELIVERY OF THE COLLATERAL. All certificates or instruments,
if any, representing or evidencing the Collateral shall be delivered to and held
by or on behalf of Lender pursuant hereto and shall be in suitable form for
transfer by delivery, or shall be accompanied by duly executed instruments of
transfer, stock powers endorsed by Pledgor in blank, or assignments in blank,
all in form and substance satisfactory to Lender. Upon the occurrence and during
the continuance of an Event of Default, Lender shall have the right, at any
time, in its discretion upon notice to Pledgor, to transfer to or to register in
the name of Lender or its nominee any or all of the Collateral. Prior to or
concurrently with the execution and delivery of this Agreement, Pledgor shall
deliver to Lender an assignment of membership interest endorsed by Pledgor in
blank (an "ASSIGNMENT OF INTEREST"), in the form set forth on EXHIBIT B hereto,
for the Laughlin Owner for the Pledged Interests, transferring all of such
Pledged Interests in blank, duly executed by Pledgor and undated. Lender shall
have the right, at any time in its discretion upon the occurrence and during the
continuance of an Event of Default and without notice to Pledgor, to transfer
to, and to designate on such Pledgor's Assignment of Interest, any Person to
whom the Pledged Interests are sold in accordance with the provisions hereof. In
addition, Lender shall have the right at any time to exchange any Assignment of
Interest representing or evidencing the Pledged Interests or any portion thereof
for one or more additional or substitute Assignments of Interest representing or
evidencing smaller or larger percentages of the Pledged Interests represented or
evidenced thereby, subject to the terms thereof.

               (c)  OBLIGATIONS UNCONDITIONAL. The obligations of Pledgor
hereunder are absolute and unconditional, irrespective of the value,
genuineness, validity, regularity or enforceability of the Mezzanine Loan
Agreement, the Laughlin Note, any other Mezzanine Loan Documents, or any other
agreement or instrument referred to herein or therein, or any substitution,
release or exchange of any guarantee of or security for any of the Obligations,
and, to the fullest extent permitted by applicable law, irrespective of any
other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge or defense of a surety or Pledgor, it being the intent of
this SECTION 2(c) that the obligations of Pledgor hereunder shall be absolute
and unconditional under any and all circumstances. Without limiting the
generality of the foregoing, it is agreed that the occurrence of any one or more
of the following shall not affect the liability of Pledgor hereunder:

                        (i)    at any time or from time to time, without notice
to Pledgor, the time for any performance of or compliance with any of the
Obligations shall be extended, or such performance or compliance shall be
waived;

                                       445
<Page>

                        (ii)   any of the acts mentioned in any of the
provisions of the Mezzanine Loan Agreement, the Laughlin Mezzanine Note, or any
other Mezzanine Loan Documents, or any other agreement or instrument referred to
herein or therein shall be done or omitted;

                        (iii)  the maturity of any of the Obligations shall be
accelerated, or any of the Obligations shall be modified, supplemented or
amended in any respect, or any right under the Mezzanine Loan Agreement, the
Laughlin Mezzanine Note, or any other Mezzanine Loan Documents, or any other
agreement or instrument referred to herein or therein shall be waived or any
other guarantee of any of the Obligations or any security or collateral therefor
shall be terminated, released or exchanged in whole or in part or otherwise
dealt with; or

                        (iv)   any lien or security interest granted to, or in
favor of Lender as security for any of the Obligations shall fail to be
perfected or shall be released.

          3. REINSTATEMENT. The obligations of Pledgor under this Agreement
shall be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of Pledgor in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as a
result of any proceedings in bankruptcy or reorganization or otherwise and
Pledgor agree that they will indemnify Lender on demand for all reasonable costs
and expenses (including, without limitation, fees of counsel) incurred by Lender
in connection with such rescission or restoration.

          4. REPRESENTATIONS, WARRANTIES OF PLEDGOR. Pledgor represents,
warrants and covenants that:

               (a)  EXISTENCE. Pledgor: (a) is a limited liability company duly
organized and validly existing under the laws of Delaware; (b) has all requisite
power, and has all governmental licenses, authorizations, consents and approvals
necessary, to own its assets and carry on its business as now being or as
proposed to be conducted; and (c) is qualified to do business in all
jurisdictions in which the nature of the business conducted by it makes such
qualification necessary.

               (b)  LITIGATION. Except as disclosed to Lender in writing prior
to the date of this Agreement, there are no legal or arbitral proceedings or any
proceedings by or before any Governmental Authority or agency, now pending or
(to the knowledge of Pledgor) threatened against Pledgor, the Collateral and/or
the Company.

               (c)  NO BREACH. None of the execution and delivery of this Pledge
or any other Mezzanine Loan Document to which Pledgor is a party, the
consummation of the transactions herein or therein contemplated and compliance
with the terms and provisions hereof or thereof will conflict with or result in
a breach of, or require any consent (except such consents as have been obtained)
under the organizational documents of Pledgor or the Company, or any applicable
law or regulation, or any order, writ, injunction or decree of any court or
Governmental Authority, or any agreement or instrument to which Pledgor is a
party or by which it is bound or to which it is subject, or constitute a default
under any such agreement or instrument, or (except for the lien arising

                                       446
<Page>

pursuant to this Agreement) result in the creation or imposition of any lien
upon any of the revenues or assets of Pledgor pursuant to the terms of any such
agreement or instrument.

               (d)  NECESSARY ACTION. Pledgor has all necessary power and
authority to execute, deliver and perform its obligations under this Agreement;
the execution, delivery and performance by Pledgor of this Agreement has been
duly authorized by all necessary action on its part; and this Agreement has been
duly and validly executed and delivered by Pledgor and constitutes its legal,
valid and binding obligation, enforceable in accordance with its terms, subject
to bankruptcy, insolvency, moratorium or other similar laws affecting the
enforcement of creditors' rights in general and to general principles of equity.

               (e)  APPROVALS. No authorizations, approvals and consents of, and
no filings and registrations with, any governmental or regulatory authority or
agency are necessary for (a) the execution, delivery or performance by Pledgor
of this Agreement or for the validity or enforceability thereof; (b) the grant
by Pledgor of the assignments and security interests granted hereby, or the
pledge by Pledgor of the Collateral pursuant hereto; (c) the perfection or
maintenance of the pledge, assignment and security interest created hereby
(including the first priority nature of such pledge, assignment and security
interest) except for the filing of financing statements under the Uniform
Commercial Code; or (d) the exercise by Lender of all rights and remedies in
respect of the Collateral pursuant to this Agreement.

               (f)  OWNERSHIP. Pledgor owns a 100% interest in the Company.
Pledgor has good and indefeasible title to, the Collateral, free and clear of
all pledges, liens, mortgages, hypothecations, security interests, charges,
options or other encumbrances whatsoever, except the lien and security interest
created by this Agreement. The Pledged Interests are not and will not be subject
to any contractual restriction upon the transfer thereof (except for any such
restrictions contained herein).

               (g)  PRINCIPAL PLACE OF BUSINESS AND STATE OF ORGANIZATION.
Pledgor will not change Pledgor's principal place of business or state of
organization unless Pledgor has previously notified Lender thereof and taken
such action as is necessary or reasonably requested by Lender to cause the
security interest of Lender in the Collateral to continue to be perfected.

               (h)  VALID SECURITY INTEREST. This Agreement creates a valid
security interest in the Collateral, securing the payment of the Obligations,
and upon the filing in the appropriate filing offices of the financing
statements to be delivered pursuant to this Agreement, such security interests
will be perfected, first priority security interests, and all filings and other
actions necessary to perfect such security interests will have been duly taken.

          5. COVENANTS OF PLEDGOR.

               (a)  NO TRANSFER. Unless expressly permitted under the Mezzanine
Loan Agreement, Pledgor will not sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Collateral, nor will it
create, incur or permit to exist any pledge, lien, mortgage, hypothecation,
security interest, charge, option or any other encumbrance with respect to

                                       447
<Page>

any Collateral, or any interest therein, or any proceeds thereof, except for the
lien and security interest provided for by this Agreement.

               (b)  NO WAIVER, AMENDMENT, ETC. Pledgor shall not directly or
indirectly, without the prior written consent of Lender, attempt to waive,
alter, amend, modify, supplement or change in any way, or release, subordinate,
terminate or cancel in whole or in part, or give any consent under, any of the
instruments, documents, policies or agreements constituting the Collateral or
any of the rights or interests of Pledgor as party, holder, mortgagee or
beneficiary thereunder. Pledgor agrees that all rights to do any and all of the
foregoing have been assigned to Lender, but Pledgor agrees that, upon request
from Lender from time to time, Pledgor shall do any of the foregoing or shall
join Lender in doing so or shall confirm the right of Lender to do so and shall
execute such instruments and undertake such actions as Lender may reasonably
request in connection therewith.

               (c)  SETTLEMENT AND RELEASE. Pledgor shall not make any election,
compromise, adjustment or settlement in respect of any of the Collateral.

               (d)  PRESERVATION OF COLLATERAL. Lender may, in its discretion,
for the account and expense of Pledgor pay any amount or do any act required of
Pledgor hereunder or requested by Lender to preserve, protect, maintain or
enforce the Obligations, the Collateral or the security interests granted
herein, provided Pledgor has failed to pay such amount or take such action
within ten (10) days after written demand by Lender. Any such payment shall be
deemed an advance by Lender to Pledgor and shall be payable by such Pledgor
within ten (10) days after written demand together with interest thereon at the
Default Rate from the date expended by Lender until paid.

               (e)  WARRANTY OF TITLE. Pledgor shall warrant and defend the
right, title and interest of Lender in and to the Collateral and the proceeds
thereof against the claims and demands of all persons whomsoever.

               (f)  FILES AND RECORDS. Pledgor shall maintain, at their
principal office, and, upon request, make available to Lender the originals, or
copies in any case where the originals have been delivered to Lender of the
instruments, documents, policies and agreements constituting the Collateral (to
the extent not held by Lender) and related documents and instruments, and all
files, surveys, certificates, correspondence, appraisals, computer programs,
tapes, discs, cards, accounting records and other information and data relating
to the Collateral.

               (g)  LITIGATION. Pledgor shall promptly give to Lender notice of
all pending legal or arbitration proceedings, and of all proceedings pending by
or before any governmental or regulatory authority or agency, affecting Pledgor
or any Owner.

               (h)  EXISTENCE, ETC. Pledgor shall and shall cause the Laughlin
Owner to preserve and maintain its existence and all of its material rights,
privileges and franchises. Pledgor shall comply and cause the Laughlin Owner to
comply with the requirements of all applicable laws, rules, regulations and
orders of governmental or regulatory authorities; and pay and discharge or cause
the Laughlin Owner to pay or discharge all taxes, assessments and governmental
charges or

                                       448
<Page>

levies imposed on them or on their income or profits or on any of their property
prior to the date on which penalties attach thereto, except for any such tax,
assessment, charge or levy the payment of which is being contested in good faith
and by proper proceedings.

               (i)  CHARTER DOCUMENTS. Pledgor shall, at its expense:

                    (i)    perform and observe all the terms and provisions of
the Charter Documents to be performed or observed by it, maintain the Charter
Documents in full force and effect, enforce the Charter Documents in accordance
with their respective terms, and to take all such action to such end as may be
from time to time reasonably requested by Lender; and

                    (ii)   furnish to Lender promptly upon receipt thereof
copies of all notices, requests and other documents received by Pledgor under or
pursuant to the Charter Documents, and from time to time furnish to Lender such
information and reports regarding the Collateral as Lender may reasonably
request.

               (j)  FINANCING STATEMENTS. Pledgor hereby (a) authorizes Lender
to execute and file at any time or times, one or more UCC-1 financing statements
covering the Collateral and UCC assignment financing statements assigning the
UCC-1 financing statements which constitute part of the Collateral; and (b)
appoint Lender as their agent and attorney-in-fact to execute in the name of
Pledgor any UCC financing statement or amendment, or collateral assignment of
any instrument, document, policy or agreement constituting the Collateral or
other instrument or filing or recordation to perfect or continue the perfection
of the security interest so long as any Obligation remains unpaid.

          6. FURTHER ASSURANCES; REMEDIES. In furtherance of the grant of the
pledge and security interest pursuant to SECTION 2 hereof, Pledgor hereby agrees
with Lender as follows:

               (a)  DELIVERY AND OTHER PERFECTION. Pledgor shall:

                    (i)    if any of the above-described Collateral required to
be pledged by Pledgor under SECTION 2(a) hereof are received by Pledgor,
forthwith either (x) transfer and deliver to Lender such Collateral so received
by Pledgor (together with the certificates (if any) for any such Collateral,
including assignments duly endorsed in blank and accompanied in the case of
shares by undated stock powers duly executed in blank) all of which thereafter
shall be held by Lender, pursuant to the terms of this Agreement, as part of the
Collateral or (y) take such other action as Lender shall deem reasonably
necessary or appropriate to duly record the lien created hereunder in such
Collateral referred to in said SECTION 2(a);

                    (ii)   give, execute, deliver, file and/or record any
financing statement, notice, instrument, document, agreement or other papers
that may be necessary or desirable (in the reasonable judgment of Lender) to
create, preserve, perfect or validate the security interest granted pursuant
hereto or to enable Lender to exercise and enforce its rights hereunder with
respect to such pledge and security interest, including, without limitation,
causing any or all of the Collateral to be transferred of record into the name
of Lender or its nominee (and Lender agrees that

                                       449
<Page>

if any Collateral is transferred into its name or the name of its nominee,
Lender will thereafter promptly give to Pledgor copies of any notices and
communications received by it with respect to the Collateral); and

                    (iii)  permit representatives of Lender, upon reasonable
notice, at any time during normal business hours to inspect and make abstracts
from its books and records pertaining to the Collateral, and permit
representatives of Lender to be present at Pledgor's place of business to
receive copies of all communications and remittances relating to the Collateral,
and forward copies of any notices or communications received by Pledgor with
respect to the Collateral, all in such manner as Lender may reasonably require.

               (b)  PRESERVATION OF RIGHTS. Except in accordance with applicable
law, Lender shall not be required to take steps necessary to preserve any rights
against prior parties to any of the Collateral.

               (c)  PLEDGED COLLATERAL.

                    (i)    Pledgor shall not and shall not have the right to
directly or indirectly, without the prior written consent of Lender, attempt to
waive, alter, amend, modify, supplement or change in any way, or release,
subordinate, terminate or cancel in whole or in part, or give any consent under,
any of the instruments, documents, policies or agreements constituting the
Collateral or exercise any of the rights, options or interests of Pledgor as
party, holder, mortgagee or beneficiary thereunder except as otherwise expressly
permitted under the Mezzanine Loan Agreement. Pledgor agrees that all rights to
do any and all of the foregoing have been assigned to and may be exercised by
Lender but Pledgor agrees that, upon request from Lender from time to time,
Pledgor shall do any of the foregoing or shall join Lender in doing so or shall
confirm the right of Lender to do so and shall execute such instruments and
undertake such actions as Lender may request in connection therewith. Pledgor
shall not make any election, compromise, adjustment or settlement in respect of
any of the Collateral. Notwithstanding anything herein to the contrary, so long
as no Event of Default shall have occurred and be continuing, Pledgor shall have
the right to exercise all of Pledgor's rights under the Charter Documents to
which it is a party for all purposes not inconsistent with any of the terms of
this Agreement, the Mezzanine Loan Agreement or any other Mezzanine Loan
Document or any other instrument or agreement referred to herein or therein,
provided that Pledgor agrees that it will not take any action in any manner that
is inconsistent with the terms of this Agreement, the Mezzanine Loan Agreement
or any other Mezzanine Loan Document or any such other instrument or agreement.
Lender shall execute and deliver to Pledgor or cause to be executed and
delivered to Pledgor all such proxies, powers of attorney, distribution and
other orders, and all such instruments, without representation, recourse or
warranty, as Pledgor may reasonably request for the purpose of enabling Pledgor
to exercise the rights and powers which it is entitled to exercise pursuant to
this SECTION 6(c).

                    (ii)   Anything to the contrary notwithstanding, (i) Pledgor
shall remain liable under the Charter Documents to perform all of their duties
and obligations thereunder to the same extent as if this Agreement had not been
executed, (ii) the exercise by Lender of any of the rights hereunder shall not
release Pledgor from any of their duties or obligations under the

                                       450
<Page>

Charter Documents, and (iii) Lender shall have no obligation or liability under
the Charter Documents by reason of this Agreement, nor shall Lender be obligated
to perform any of the obligations or duties of Pledgor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

               (d)  EVENTS OF DEFAULT, ETC. During the period during which an
Event of Default shall have occurred and be continuing:

                    (i)    Lender shall have all of the rights and remedies with
respect to the Collateral of a secured party under the Uniform Commercial Code
(whether or not said Code is in effect in the jurisdiction where the rights and
remedies are asserted) and such additional rights and remedies to which a
secured party is entitled under the laws in effect in any jurisdiction where any
rights and remedies hereunder may be asserted, including, without limitation,
the right, to the maximum extent permitted by law, to exercise all voting,
consensual and other powers of ownership pertaining to the Collateral as if
Lender were the sole and absolute owner thereof (and Pledgor agrees to take all
such action as may be appropriate to give effect to such right);

                    (ii)   Lender in its discretion may, in its name or in the
name of Pledgor or otherwise, demand, sue for, collect or receive any money or
property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so;

                    (iii)  Lender may, at its option, apply all or any part of
the Collateral to the Obligations in such order and priority as shall be
selected by Lender;

                    (iv)   Lender may, upon ten (10) days' prior written notice
to Pledgor of the time and place, with respect to the Collateral or any part
thereof which shall then be or shall thereafter come into the possession,
custody or control of Lender or any of its agents, sell, assign or otherwise
dispose of all or any part of such Collateral, at such place or places as Lender
deems best, and for cash or on credit or for future delivery (without thereby
assuming any credit risk), at public or private sale, without demand of
performance or notice of intention to effect any such disposition or of time or
place thereof (except such notice as is required above or by applicable statute
and cannot be waived) and Lender or anyone else may be the purchaser, assignee
or recipient of any or all of the Collateral so disposed of at any public sale
(or, to the extent permitted by law, at any private sale), and thereafter hold
the same absolutely, free from any claim or right of whatsoever kind, including
any right or equity of redemption (statutory or otherwise), of Pledgor, any such
demand, notice or right and equity being hereby expressly waived and released.
Unless prohibited by applicable law, Lender may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for the sale, and such sale
may be made at any time or place to which the same may be so adjourned;

                    (v)    Lender may exercise all membership rights, powers and
privileges to the same extent as Pledgor is entitled to exercise such rights,
powers and privileges;

                    (vi)   Lender may accelerate the indebtedness secured
 hereby;

                                       451
<Page>

                    (vii)  Lender may, in connection with a sale of the Pledged
Interests, cause each purchaser of all or any part of any Pledged Interests to
be admitted as a new member or owner of the Company to the extent of such
Pledged Interests, and cause Pledgor to withdraw as a member or owner of such
Company to the extent such Pledged Interests are sold, and complete by inserting
the Effective Date (as defined therein) and the name of the assignee thereunder
and deliver to such assignee each Assignment of Interest executed and delivered
by Pledgor and, if appropriate, cause one or more amended or restated
certificates of limited partnership, certificates of limited liability company
or articles of incorporation to be filed with respect to the Company;

                    (viii) Lender may exercise any and all rights and remedies
of Pledgor under or in connection with the Charter Documents or otherwise in
respect of the Collateral, including, without limitation, any and all rights of
Pledgor to demand or otherwise require payment of any amount under, or
performance of any provisions of, the Charter Documents; and

                    (ix)   all payments received, directly or indirectly, by
Pledgor under or in connection with the Charter Documents or otherwise in
respect of the Collateral shall be received in trust for the benefit of Lender,
shall be segregated from other funds of Pledgor and shall be forthwith paid over
to Lender in the same form as so received (with any necessary endorsement).

The proceeds of each collection, sale or other disposition under this SECTION
6(d) shall be applied by Lender to the Obligations pursuant to SECTION 6(f)
hereof.

Pledgor recognizes that, by reason of certain prohibitions contained in the
Securities Act of 1933, as amended, and applicable state securities laws, Lender
may be compelled, with respect to any sale of all or any part of the Collateral,
to limit purchasers to those who will agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. Pledgor acknowledges that any such private sales
may be at prices and on terms less favorable to Lender than those obtainable
through a public sale without such restrictions, and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner and that Lender shall have no
obligation to engage in public sales and no obligation to delay the sale of any
Collateral for the period of time necessary to permit the issuer thereof to
register it for public sale.

               (e)  PRIVATE SALE. Lender shall not incur any liability as a
result of the sale of the Collateral, or any part thereof, at any private sale
pursuant to SECTION 6(d) hereof conducted in a commercially reasonable manner.
Pledgor hereby waives any claims against Lender arising by reason of the fact
that the price at which the Collateral may have been sold at such a private sale
was less than the price which might have been obtained at a public sale or was
less than the aggregate amount of the Obligations, even if Lender accepts the
first offer received and does not offer the Collateral to more than one offeree.

               (f)  APPLICATION OF PROCEEDS. Except as otherwise herein
expressly provided, the proceeds of any collection, sale or other realization of
all or any part of the Collateral pursuant hereto, and any other cash at the
time held by Lender under this SECTION 6, shall be applied

                                       452
<Page>

by Lender:

                    FIRST, to the payment of the costs and expenses of such
               collection, sale or other realization, including reasonable
               out-of-pocket costs and expenses of Lender and the fees and
               expenses of their respective agents and counsel, and all
               expenses, and advances made or incurred by Lender in connection
               therewith;

                    NEXT, to the payment in full of the Obligations; and

                    FINALLY, to the payment to Pledgor, or its successors or
               assigns, or as a court of competent jurisdiction may direct, of
               any surplus then remaining.

As used in this SECTION 6, "PROCEEDS" of Collateral shall mean cash, securities
and other property realized in respect of, and distributions in kind of,
Collateral, including any thereof received under any reorganization, liquidation
or adjustment of debt of Pledgor or any issuer of or obligor on any of the
Collateral.

               (g)  ATTORNEY-IN-FACT. Without limiting any rights or powers
granted by this Agreement to Lender while no Event of Default has occurred and
is continuing, upon the occurrence and during the continuance of any Event of
Default Lender is hereby appointed the attorney-in-fact of Pledgor for the
purpose of carrying out the provisions of this SECTION 6 and taking any action
and executing any instruments which Lender may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the
foregoing, so long as Lender shall be entitled under this SECTION 6 to make
collections in respect of the Collateral, Lender shall have the right and power
to receive, endorse and collect all checks made payable to the order of Pledgor
representing any payment or other distribution in respect of the Collateral or
any part thereof and to give full discharge for the same.

               (h)  ENFORCEMENT EXPENSES. Pledgor agrees to pay to Lender all
out-of-pocket expenses (including reasonable expenses for legal services of
every kind) of, or incident to, the enforcement of any of the provisions of this
SECTION 6, or performance by Lender of any obligations of Pledgor in respect of
the Collateral which Pledgor has failed or refused to perform, or any actual or
attempted sale, or any exchange, enforcement, collection, compromise or
settlement in respect of any of the Collateral, and for the care of the
Collateral and defending or asserting rights and claims of Lender in respect
thereof, by litigation or otherwise and all such expenses shall be Obligations
to Lender secured under SECTION 2 hereof.

          7. TERMINATION. Upon the payment and performance in full of all
Obligations, this Agreement shall terminate and Lender shall forthwith cause to
be assigned, transferred and delivered, against receipt but without any
recourse, warranty or representation whatsoever, any remaining Collateral and
money received in respect thereof, to or on the order of Pledgor.

          8. MISCELLANEOUS.

                                       453
<Page>

               (a)  NO WAIVER. No failure on the part of Lender or any of its
agents to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by Lender or any of its agents
of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies
provided herein are cumulative and are not exclusive of any remedies provided by
law.

               (b)  GOVERNING LAW.

                    (i)    THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW
YORK, AND MADE BY PLEDGOR AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND
THE PROCEEDS OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE OF NEW
YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE
PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS
ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH
STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF
THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, PLEDGOR
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW
OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS,
AND THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

                    (ii)   ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER
OR PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER'S OPTION
BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF
NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW,
AND PLEDGOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON
VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND
PLEDGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY
SUIT, ACTION OR PROCEEDING. PLEDGOR DOES HEREBY DESIGNATE AND APPOINT:

               SCHIFF HARDIN & WAITE
               150 EAST 52ND STREET, SUITE 2700
               NEW YORK, NEW YORK 10022

                                       454
<Page>

               ATTENTION: DAVID A. GROSSBERG, ESQ. (CHICAGO OFFICE)

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY
AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN
ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF
PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE
MAILED OR DELIVERED TO PLEDGOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN
EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON PLEDGOR IN ANY SUCH SUIT, ACTION
OR PROCEEDING IN THE STATE OF NEW YORK. PLEDGOR (I) SHALL GIVE PROMPT NOTICE TO
LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY
TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN
OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE
DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL
PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN
OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

               (c)  NOTICES. All notices, consents, approvals and requests
required or permitted hereunder shall be given in the manner and to the
addresses set forth in the Mezzanine Loan Agreement.

               (d)  WAIVERS, ETC. The terms of this Agreement may be waived,
altered or amended only by an instrument in writing duly executed by Pledgor and
Lender. Any such amendment or waiver shall be binding upon Lender and Pledgor.

               (e)  SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
the successors and assigns of Pledgor and inure to the benefit of the successors
and assigns of Lender (PROVIDED, HOWEVER, that Pledgor shall not assign or
transfer its rights hereunder without the prior written consent of Lender).
Without limiting the foregoing, Lender may at any time and from time to time
without the consent of Pledgor, assign or otherwise transfer all or any portion
of its rights and remedies under this Agreement to any other person or entity,
either separately or together with other property of Pledgor for such purposes
in connection with a transfer of Lender's interest in the other Mezzanine Loan
Documents and on such terms as Lender shall elect, and such other person or
entity shall thereupon become vested with all of the rights and obligations in
respect thereof granted to Lender herein or otherwise. Without limiting the
foregoing, in connection with any assignment of the Loan, Lender may assign or
otherwise transfer all of its rights and remedies under this Agreement to the
assignee and such assignee shall thereupon become vested with all of the rights
and obligations in respect thereof granted to Lender herein or otherwise. Each
representation and agreement made by Pledgor in this Agreement shall be deemed
to run to, and each reference in this Agreement to Lender shall be deemed to
refer to, Lender and each of its successors and assigns.

               (f)  EXPENSES, INDEMNIFICATION.

                                       455
<Page>

                    (i)    Pledgor agrees to pay or reimburse Lender for paying:
(1) all reasonable out-of-pocket expenses of Lender (including, without
limitation, the reasonable fees and expenses of counsel to Lender), in
connection with (A) the negotiation, preparation, execution and delivery of this
Agreement and (B) any amendment, modification or waiver of any of the terms of
this Agreement requested or initiated by Pledgor; (2) all costs and expenses of
Lender (including reasonable counsel's fees) in connection with any Event of
Default and any enforcement or collection proceedings resulting therefrom; and
(3) all transfer, stamp, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this
Agreement, or any other document referred to herein and all costs, expenses,
taxes, assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated by
this Agreement or any document referred to herein.

                    (ii)   Pledgor hereby agrees to indemnify Lender and its
directors, officers, employees and agents from, and hold each of them harmless
against, any and all losses, liabilities, claims, damages or expenses incurred
by any of them arising out of or by reason of any claim of any Person (1)
relating to or arising out of the acts or omissions of Pledgor under this
Agreement or the Charter Documents (but excluding any such losses, liabilities,
claims, damages or expenses incurred by reason of the gross negligence or
willful misconduct of the Person to be indemnified), or (2) resulting from the
ownership of or lien on any Collateral, including, without limitation, the
reasonable fees and disbursements of counsel incurred in connection with any
such investigation or litigation or other proceedings (but excluding any such
losses, liabilities, claims, damages or expenses incurred by reason of the gross
negligence or willful misconduct of the Person to be indemnified).

               (g)  NO LIABILITY ON PART OF LENDER. Lender, by its acceptance of
this Agreement, the Collateral and any payments on account thereof, shall not be
deemed to have assumed or to have become liable for any of the obligations or
liabilities of Pledgor. Lender shall have no duty to collect any sums due in
respect of any of the Collateral in its possession or control, or to enforce,
protect or preserve any rights pertaining thereto, and Lender shall not be
liable for failure to collect or realize upon the Collateral, or any part
thereof, or for any delay in so doing, nor shall Lender be under any obligation
to take any action whatsoever with regard thereto. Lender shall, if requested by
the payor of any revenue payment, give receipts for any payments received by
Lender on account of the Collateral.

               (h)  FURTHER ASSURANCES. Pledgor agrees that, from time to time
upon the written request of Lender, Pledgor will execute and deliver such
further documents and do such other acts and things as Lender may reasonably
request in order fully to effect the purposes of this Agreement.

               (i)  DELAY NOT A WAIVER. Neither any failure nor any delay on the
part of Lender in insisting upon strict performance of any term, condition,
covenant or agreement, or exercising any right, power, remedy or privilege
hereunder, shall operate as or constitute a waiver thereof, nor shall a single
or partial exercise thereof preclude any other future exercise, or the exercise
of any other right, power, remedy or privilege.

                                       456
<Page>

               (j)  COUNTERPARTS. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

               (k)  SEVERABILITY. If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by law,
(i) the other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in favor of Lender in order to
carry out the intentions of the parties hereto as nearly as may be possible and
(ii) the invalidity or unenforceability of any provision hereof in any
jurisdiction shall not affect the validity or enforceability of such provision
in any other jurisdiction.

               (l)  LIMITATION OF LIABILITY. The liability of Pledgor hereunder
shall be subject to the provisions of SECTION 11.22 of the Mezzanine Loan
Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       457
<Page>

     IN WITNESS WHEREOF, Pledgor has caused this Agreement to be duly executed
as of the day and year first above written.

                                             LAUGHLIN HOLDINGS LLC, a Delaware
                                              limited liability company

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

                                       458
<Page>

                                    EXHIBIT A

                                CHARTER DOCUMENTS

1.   Certificate of Formation filed on July 5, 2002.

2.   Limited Liability Company Agreement dated as of July 5, 2002.

                                       459
<Page>

                                    EXHIBIT B

                    FORM OF ASSIGNMENT OF MEMBERSHIP INTEREST

          ASSIGNMENT OF MEMBERSHIP INTEREST (this "ASSIGNMENT") dated as of
__________, made by LAUGHLIN HOLDINGS LLC, a Delaware limited liability company
(together with its successors and assigns, the "ASSIGNOR") to
____________________ (the "ASSIGNEE").

                                    RECITALS

          The undersigned has entered into the Pledge and Security Agreement
dated as of July ____, 2002 (such Agreement, as it may be amended or otherwise
modified from time to time, the "PLEDGE AGREEMENT") with UBS WARBURG REAL ESTATE
INVESTMENTS INC., a Delaware corporation (together with its successors and
assigns, the "LENDER"). Unless otherwise noted, terms defined in the Pledge
Agreement are used herein as defined therein.

          The Assignor is the sole equity member of Laughlin Outlet Center LLC
(the "COMPANY") existing under and evidenced by the Limited Liability Company
Agreement of the Company dated as of July 5, 2002 (such agreement, as it may be
amended, supplemented or otherwise modified from time to time, the "OPERATING
AGREEMENT"). Under the Operating Agreement, the Assignor has certain rights,
title and interest in and to the Company and the property and assets of the
Company (collectively, the "INTEREST").

          Lender has required that the Assignor shall have executed and
delivered this Assignment.

          NOW THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

     SECTION 1.  ASSIGNMENT AND ACCEPTANCE OF ASSIGNED INTEREST. As of the
Effective Date (as defined in SECTION 9), the Assignor hereby sells, transfers,
conveys and assigns (without recourse and, except as set forth herein,
representation or warranty) (collectively, the "ASSIGNMENT") to the Assignee all
of the Assignor's right, title and interest in and to the Interest and of its
rights under the Operating Agreement, including, without limitation, all its (a)
rights to receive moneys due and to become due under or pursuant to the
Operating Agreement, (b) rights to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect to the Operating Agreement, (c) claims for
damages arising out of or for breach of or default under the Operating
Agreement, and (d) rights to perform thereunder and to compel performance, and
otherwise exercise all rights and remedies thereunder. The percentage interest
of the Assignor's right, title and interest in the Interest and of the
Assignor's rights under the Operating Agreement that are being assigned to the
Assignee pursuant to this Agreement are hereinafter referred to as the "ASSIGNED
INTEREST". The Assignee, upon the execution of this Assignment, hereby accepts
from the Assignor the Assigned Interest and agrees to become a successor member
of the Company in the place and stead of the Assignor to the extent of

                                       460
<Page>

the Assigned Interest and to be bound by the terms and provisions of the
Operating Agreement.

     SECTION 2.  CAPITAL ACCOUNT. On or prior to the Effective Date, the
Assignee shall notify each of the other members in the Company required to be so
notified under the terms of the Operating Agreement and thereafter, the portion
of all profits and losses, and all other items of income, gain, loss, deduction
or credit, allocable to the Assigned Interest shall be credited or charged, as
the case may be, to the Assignee and the Assignee shall be entitled to the
portion of all distributions, payments or other allocations payable in respect
of the Assigned Interest, regardless of the source of such distributions,
payments or other allocations or the date on which they were earned.

     SECTION 3.  REPRESENTATIONS AND WARRANTIES OF THE ASSIGNOR. The Assignor
represents to Lender, as of the date of this Assignment, and to Lender and the
Assignee as of the Effective Date, that:

            (a)  This Assignment has been duly executed and delivered by the
Assignor and is a valid and binding obligation of the Assignor, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting rights of creditors generally, and general principles of
equity; and

            (b)  The Assignor is the sole owner of the Assigned Interest free
and clear of any liens, except for the liens created by the Pledge Agreement.

     SECTION 4.  FILINGS. On or as soon as practicable after the Effective Date,
the Assignee shall file and record or cause to be filed and recorded with all
proper offices or agencies all documents and instruments required to effect the
terms herein, if any, including, without limitation, (a) this Assignment and (b)
any limited liability company and assumed or fictitious name certificate or
certificates and any amendments thereto.

     SECTION 5.  FUTURE ASSURANCES. Each of the Assignor and the Assignee
mutually agrees to cooperate at all times from and after the date hereof with
respect to any of the matters described herein, and to execute such further
deeds, bills of sale, assignments, releases, assumptions, notifications or other
documents as may be reasonably requested for the purpose of giving effect to,
evidencing or giving notice of the assignment evidenced hereby.

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

     SECTION 7.  MODIFICATION AND WAIVER. No supplement, modification, waiver or
termination of this Assignment or any provisions hereof shall be binding unless
executed in writing by all parties hereto and the original of such writing has
been delivered to Assignee.

     SECTION 8.  COUNTERPARTS. Any number of counterparts of this Assignment may
be executed. Each counterpart will be deemed to be an original instrument and
all counterparts taken together will constitute one agreement. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be as effective as delivery of a manually executed counterpart of

                                       461
<Page>

this Assignment.

     SECTION 9.  EXECUTION; EFFECTIVE DATE. This Assignment will be binding and
effective and will result in the assignment of the Assigned Interest on the date
first written above (the "EFFECTIVE DATE").

     SECTION 10. GOVERNING LAW. This Assignment will be governed by the laws of
the State of New York.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       462
<Page>

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be
executed and delivered.

                                             ASSIGNOR

                                             LAUGHLIN HOLDINGS LLC, a Delaware
                                              limited liability company

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

                                       463
<Page>

                                             ASSIGNEE

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

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

                                       464

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