Document:

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                                                                  EXHIBIT 10.171

                                  MORTGAGE NOTE
                                 (VARIABLE RATE)

$15,190,000.00                                                  October 30, 2002

         FOR VALUE RECEIVED, the undersigned, GLIMCHER PROPERTIES LIMITED
PARTNERSHIP, a Delaware limited partnership, with offices at 20 South Third
Street, Columbus, Ohio 43215 (hereinafter referred to as "Maker"), promises to
pay to the order of BANK ONE, NA, a national banking association (hereinafter
referred to as "Payee," which term shall include any holder hereof), at its
principal place of business at 100 East Broad Street, Columbus, Ohio 43271-0208,
or at such other place as Payee may designate, the principal sum of Fifteen
Million One Hundred Ninety Thousand Dollars ($15,190,000.00) or so much thereof
as may be advanced by Payee to Maker from time to time, together with all
charges herein provided and interest on the unrepaid advances of said principal
sum from date of disbursement by Payee, payable in cash at the rates and in the
manner hereinafter set forth.

                                    ARTICLE I

                                   DEFINITIONS

         1.1      The following terms wherever used in this Note shall have the
following meanings:

         "30-Day LIBOR Rate" shall mean a fixed rate of interest equal to the
LIBOR Rate for a thirty (30) day Interest Period.

         "60-Day LIBOR Rate" shall mean a fixed rate of interest equal to the
LIBOR Rate for a sixty (60) day Interest Period.

         "90-Day LIBOR Rate" shall mean a fixed rate of interest equal to the
LIBOR Rate for a ninety (90) day Interest Period.

         "Audubon Village Mortgage" shall mean a certain Mortgage, Assignment of
Rents and Security Agreement of even date herewith on the Audubon Village
Property given by Maker in favor of Payee to secure payment of this Note.

         "Audubon Village Property" shall mean that certain tract of land
consisting of 16.807 acres, more or less, and all improvements, now and
hereafter situated thereon in the City of Henderson, County of Henderson and
Commonwealth of Kentucky, all of which shall be subject to the Audubon Village
Mortgage.

         "Calculation Date" shall mean the first day of each calendar quarter
commencing January 1, 2003, and each April 1, July 1, October 1, and January 1
thereafter.
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         "Chillicothe Plaza Mortgage" shall mean a certain Open-End Mortgage,
Assignment of Rents and Security Agreement of even date herewith on the
Chillicothe Plaza Property given by Maker in favor of Payee to secure payment of
this Note.

         "Chillicothe Plaza Property" shall mean that certain tract of land
consisting of 16.315 acres, more or less, and all improvements, now and
hereafter situated thereon in the City of Chillicothe, County of Ross and State
of Ohio, all of which shall be subject to the Chillicothe Plaza Mortgage.

         "Default Rate of Interest" shall mean the rate equal to three percent
(3.0%) per annum plus the applicable rate of interest otherwise being charged
hereunder.

         "DSCR" shall mean the debt service coverage ratio as determined by
Payee as of each Calculation Date, calculating the ratio of (x) the sum of the
Net Operating Income from the Properties for the immediately preceding twelve
(12) months to (y) the sum of the principal and interest payments that would be
due and payable for the immediately preceding twelve (12) months based upon an
assumed amortization of the outstanding principal amount hereunder over a
twenty-five (25) year period at an assumed interest rate of the then-current
10-year U.S. Treasuries plus two and one-half percent (2.50%) per annum, but in
no event at an assumed interest rate less than seven and one-half percent (7.5%)
per annum.

         "Effective LIBOR Rate" shall mean the Elected LIBOR Rate plus one and
95/100 percent (1.95%) per annum, subject to adjustment pursuant to the
provisions of Sections 2.4 and 2.5.

         "Effective Rate" shall mean the Prime Rate, Effective LIBOR Rate, or
Default Rate of Interest, whichever shall be applicable.

         "Elected LIBOR Rate" shall mean the 30-Day LIBOR Rate, the 60-Day LIBOR
Rate or the 90-Day LIBOR Rate, as applicable.

         "Extension Period" shall mean the period during which the Maturity Date
has been extended pursuant Section 2.6 of this Note.

         "Gross Revenues" shall mean for each month all rents, revenues and
other payments received by or for the benefit of Maker in cash or current funds
or other consideration from any source whatsoever in connection with its
ownership, operation and management of the Properties, including all payments
received by Maker from all tenants or other occupants of the Properties. Gross
Revenues shall be determined on an accrual basis and in accordance with general
accepted accounting principles.

         "Interest Period" means each consecutive one, two or three month
period, as applicable (the first of which shall commence on the date of this
Note) effective as of the first day of each Interest Period and ending on the
last day of each Interest Period, but in no event exceeding the Maturity Date of
this Note, and provided that if any Interest Period is scheduled to end on a
date

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for which there is no numerical equivalent to the date on which the Interest
Period commenced, then it shall end instead on the last day of such calendar
month.

         "LIBOR Index" shall mean the offered rate for the period equal to or
next greater than the Interest Period for U.S. Dollar deposits of not less than
$1,000,000.00 as of 11:00 A.M. City of London, England time two London Business
Days prior to the first day of the Interest Period as shown on the display
designated as "British Bankers Association Interest Settlement Rates" on Reuters
Screen FRBD, or such other screen as may replace such screen on Reuters for the
purpose of displaying such rate. In the event that such rate is not available on
Reuters, then such offered rate shall be otherwise independently determined by
Payee from an alternate, substantially similar independent source available to
Payee or shall be calculated by Payee by a substantially similar methodology as
that theretofore used to determine such offered rate.

         "LIBOR Rate" shall mean, initially, the LIBOR Index plus one and 95/100
percent (1.95%) per annum, subject to adjustment pursuant to the provisions of
Section 2.5.

         "LIBOR Rate Conversion Notice" shall mean written notice from Maker
delivered to Lender not less than two (2) London Business Days prior to the end
of any Interest Period specifying that Maker elects either the 60-Day LIBOR Rate
or the 90-Day LIBOR Rate as the Elected LIBOR Rate for the next Interest Period.

         "Liberty Plaza Deed of Trust" shall mean a certain Deed of Trust,
Assignment of Rents and Security Agreement of even date herewith on the Liberty
Plaza Property given by Maker in favor of Payee to secure payment of this Note.

         "Liberty Plaza Property" shall mean that certain tract of land
consisting of 8.10 acres, more or less, and all improvements, now and hereafter
situated thereon in the City of Morristown, County of Hamblen and State of
Tennessee, all of which shall be subject to the Liberty Plaza Deed of Trust.

         "Loan Agreement" shall mean that certain Loan Agreement of even date
herewith, pursuant to which the principal amount of this Note is to be
disbursed, by which Payee agrees to loan funds to Maker pursuant to the terms
and conditions stated therein.

         "Loan Documents" shall collectively mean this Note, the Mortgages, Loan
Agreement, and any other instrument, affidavit, certificate, or document
heretofore, now or hereafter given by Maker in connection with the closing of
the loan evidenced by this Note.

         "London Business Day" means any day other than a Saturday, Sunday or a
day on which banking institutions are generally authorized or obligated by law
or executive order to close in the City of London, England.

         "Maturity Date" shall mean the earlier of November 1, 2004 (or November
1, 2005 if extended pursuant to Section 2.6 of this Note), or the date of
acceleration of the Indebtedness by Payee.

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         "Mortgages" shall mean, collectively, the Audubon Village Mortgage, the
Chillicothe Plaza Mortgage, the Liberty Plaza Deed of Trust, and the
Prestonsburg Village Center Mortgage.

         "Net Operating Income" shall mean, for each month calculated by Payee
based upon Payee's review of Maker's monthly financial statements provided to
Payee, together with such other information as Payee may reasonably request, the
difference between the Gross Revenues for said month and all the Operating
Expenses for said month.

         "Operating Expenses" shall mean the reasonably necessary and customary
costs and expenses incurred and actually paid by Maker in connection with its
ownership, operation and management of the Properties, determined on an accrual
basis and in accordance with generally accepted accounting principles;
specifically excluding from Operating Expenses, however (a) all capital
expenditures incurred by Maker, (b) principal, interest and all other payments
made under the Loan Documents and costs and expenses incurred by Maker in
connection with the execution of the Loan Documents, and (c) depreciation and
all other non-cash expenses of the Properties.

         "Prestonsburg Village Center Mortgage" shall mean a certain Mortgage,
Assignment of Rents and Security Agreement of even date herewith on the
Prestonsburg Village Center Property given by Maker in favor of Payee to secure
payment of this Note.

         "Prestonsburg Village Center Property" shall mean that certain tract of
land consisting of 28.417 acres, more or less, and all improvements, now and
hereafter situated thereon in the City of Prestonsburg, County of Floyd and
Commonwealth of Kentucky, all of which shall be subject to the Prestonsburg
Village Center Mortgage.

         "Prime Rate" shall mean the interest rate established and announced
from time to time by Bank One, NA, as its prime rate, based upon its
consideration of economic, money market, business and competitive factors, and
it is not necessarily the most favorable rate of Bank One, NA. Each change in
said Prime Rate shall, without notice, automatically and immediately change the
rate of interest due hereon.

         "Properties" shall mean, collectively, the Audubon Village Property,
the Chillicothe Plaza Property, the Liberty Plaza Property, and the Prestonsburg
Village Center Property.

                                   ARTICLE II

                       PAYMENTS OF PRINCIPAL AND INTEREST

         2.1      Subject to the provisions of this Article II, interest on the
unrepaid advances of the principal sum from date of disbursement by Payee at the
Effective LIBOR Rate shall be due and payable monthly on the first day of each
month commencing November 1, 2002, and continuing on the first day of each month
thereafter to and including the Maturity Date.

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         2.2      Notwithstanding the foregoing, if any advances of the
principal sum are made by Payee to Maker that are not made at the beginning of
the Interest Period for the Effective LIBOR Rate, such advances shall bear
interest at the Prime Rate until the end of the Interest Period in which such
advances were made, and then such advances shall be added to the outstanding
principal sum bearing interest at the Effective LIBOR Rate for the next Interest
Period.

         2.3      Interest on this Note is computed by applying the ratio of the
annual interest rate over a year of three hundred sixty (360) days, multiplied
by the outstanding principal balance, multiplied by the actual number of days
the principal balance is outstanding.

         2.4      The Elected LIBOR Rate shall at all times hereunder be the
30-Day LIBOR Rate unless Maker shall effectively elect a 60-Day LIBOR Rate or
90-Day LIBOR Rate by timely delivery to Payee of a LIBOR Rate Conversion Notice.

         2.5      Effective as of any Calculation Date, in the event that Payee
determines: (a) that the DSCR is equal to or less than 1.65, but greater than
1.50, then the Effective LIBOR Rate charged hereunder shall adjust to be equal
to the Elected LIBOR Rate plus two and 10/100 percent (2.10%) per annum; (b)
that the DSCR is equal to or less than 1.50, then the Effective LIBOR Rate
charged hereunder shall adjust to be equal to the Elected LIBOR Rate plus two
and 25/100 percent (2.25%) per annum; and (c) that the DSCR is greater than
1.65, then the Effective LIBOR Rate charged hereunder shall adjust to be equal
to the Elected LIBOR Rate plus one and 95/100 percent (1.95%) per annum.

         2.6      All principal and all accrued and unpaid interest shall be due
and payable in full on the Maturity Date, unless a principal payment is
otherwise required prior to the Maturity Date pursuant to the provisions of
Section 5.4 of the Loan Agreement, in which case such principal payment shall be
accordingly made; provided further, however, that Maker may elect, subject to
Payee's approval which may be withheld in Payee's sole and absolute discretion,
to extend the Maturity Date of this Note to November 1, 2005, by giving Payee
written notice of such request after July 1, 2004, but prior to October 1, 2004,
and by paying to Payee, prior to the then current Maturity Date, a
non-refundable loan extension fee in the amount of one-fourth of one percent
(0.25%) of the then outstanding principal balance of this Note; provided further
that, at the time of such election, there shall not have occurred any uncured
Event of Default, as hereinafter defined, or any event which after notice or the
passage of time, or both, could give rise to an Event of Default, or any
materially adverse change in the financial condition of Maker.

         2.7      Should the Maturity Date be extended pursuant to Section 2.6
of this Note, during the Extension Period, Maker shall make monthly principal
payments to Payee in an amount equal to one-three hundredths (1/300) of the
outstanding principal due under this Note as of, and commencing on, the first
day of the Extension Period, in addition to the interest payments due under
Section 2.1.

         2.8      Unless otherwise agreed to, in writing, or otherwise required
by applicable law, payments will be applied first to accrued, unpaid interest,
then to principal, and any remaining amount to any unpaid collection costs, late

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charges and other charges, provided, however, upon an Event of Default, Payee
reserves the right to apply payments among principal, interest, late charges,
collection costs and other charges at its discretion. All prepayments shall be
applied to the indebtedness owing hereunder in such order and manner as Payee
may from time to time determine in its sole discretion.

         2.9      All payments of principal and interest due under this Note
shall be made by Maker without any rights of offset or other reduction of the
amount of such payments.

                                  ARTICLE III

                                  LATE CHARGES

         3.1      If any of said payments of principal or interest or any
combination thereof be not paid in full within ten (10) days after such payment
is due, then in addition to the amount of said payment there shall be due, and
Maker promises to pay, a late charge in respect of each said payment in the
amount of five percent (5.0%) of the regularly scheduled payment or $25.00,
whichever is greater, up to the maximum amount of One Thousand Five Hundred
Dollars ($1,500.00) per late charge, which Maker agrees is a fair and reasonable
charge for costs incurred by Payee in processing such late payment and shall not
be deemed a penalty. The late charge may be assessed without notice, shall be
immediately due and payable and shall be in addition to all other rights and
remedies available to Payee.

                                   ARTICLE IV

                                   PREPAYMENT

         4.1      The privilege is hereby reserved by Maker to prepay, upon five
(5) business days' prior written notice to Payee, the outstanding principal
balance of this Note in whole or in part at any time and from time to time
without premium or penalty, provided that a payment of all accrued and unpaid
interest to the date of such prepayment is included with such prepayment.
Notwithstanding the foregoing, if Maker makes any such prepayment other than on
the last day of an Interest Period, Maker (a) with such prepayment, shall pay
all accrued and unpaid interest to the date of such prepayment, (b) with such
prepayment, shall pay an administrative fee of $100.00, and (c) on demand, shall
reimburse Payee and hold Payee harmless from all losses and expenses incurred by
Payee as a result of such prepayment, including, without limitation, any losses
and expenses arising from the liquidation or reemployment of deposits acquired
to fund or maintain the principal amount prepaid. Such reimbursement shall be
calculated as though Payee funded the principal amount prepaid through the
purchase of U.S. Dollar deposits in the London, England interbank market having
a maturity corresponding to such Interest Period and bearing an interest rate
equal to the LIBOR Rate for such Interest Period, whether in fact that is the
case or not. Payee's determination of the amount of such reimbursement shall be
conclusive in the absence of manifest error. In the event that the prepayment is
made as a result of Acceleration as defined in Section 5.2 below, then a
prepayment premium shall be payable equal to five percent (5%) of the amount
then due.

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                                    ARTICLE V

                                     DEFAULT

         5.1      The term "Event of Default" shall mean the occurrence of any
one or more of the following:

         (a)      A failure by Maker to make any payment of principal or
interest or any combination thereof on this Note within fifteen (15) days after
payment is due;

         (b)      The material incorrectness as of the date hereof of any
representation or warranty made by Maker to Payee in any of the Loan Documents,
any financial statement or any other document delivered to Payee in connection
with the loan evidenced by this Note;

         (c)      The abandonment of any of the Properties, or any portion
thereof, without the written consent of Payee;

         (d)      Intentionally Omitted;

         (e)      The sale (by land contract or otherwise), assignment,
mortgaging, leasing, encumbering, refinancing or conveyance of any of the
Properties, or any portion thereof or legal or equitable interest therein,
except as otherwise expressly permitted in the Loan Documents;

         (f)      That a mechanic's or materialmen's lien is filed upon any of
the Properties, which lien is not discharged or bonded off or fully reserved
for, within thirty (30) days after such filing;

         (g)      Thirty (30) days after Payee's notice to Maker of Maker's
failure to keep in full force and effect or obtain and thereafter keep in full
force and effect all certificates, licenses, franchise or management agreements,
permits and other agreements necessary in Payee's reasonable discretion, for the
lawful occupancy, use and operation of the any of the Properties for its
intended purposes, including, but not limited to, a retail center.

         (h)      A failure by Maker to keep in effect the policies of insurance
required by any of the Mortgages;

         (i)      The change in the identity of any of the general partners of
Maker;

         (j)      The occurrence of any event of default, acceleration, or
commencement of foreclosure under any other deed of trust, lien or encumbrance
on any of the Properties, prior or subordinate to any of the Mortgages;

         (k)      The entry of any judgment or lien in an amount in excess of
One Hundred Thousand Dollars ($100,000.00) against Maker by or in favor of any
third person which judgment or lien is not satisfied, discharged, reserved for,
or bonded off within thirty (30) days from the date of entry of said judgment or
lien;

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         (l)      The appointment of a receiver, trustee, custodian,
conservator, or liquidator, or other similar official for Maker or any of the
Properties or any other property of Maker;

         (m)      Maker shall admit in writing inability to pay debts, or shall
make a general assignment for the benefit of creditors;

         (n)      Maker shall commence any case, proceeding or other action
seeking reorganization, arrangement, adjustment, liquidation, dissolution or
composition of Maker or any debts under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors;

         (o)      Any case, proceeding or other action commenced against Maker
seeking to have an order for relief entered against Maker, as debtor, or seeking
a reorganization, arrangement, adjustment, liquidation, dissolution or
composition of Maker or any debts, under any law relating to bankruptcy,
insolvency, reorganization or debtor relief laws, or seeking an appointment of a
receiver, trustee, custodian or other similar official for Maker or for all or
any of the Properties, or any other property of Maker, and such case, proceeding
or other action (i) results in the entry of an order for relief against Maker or
(ii) remains undismissed for a period of sixty (60) days;

         (p)      Maker shall have concealed, removed, or permitted to be
concealed or removed, any part of its property, with intent to hinder, delay or
defraud its creditors or any of them, or made or suffered a transfer of any of
its property which may be fraudulent under any bankruptcy, fraudulent conveyance
or similar law; or shall have suffered or permitted, while insolvent, any
creditor to obtain a lien upon any of its property through legal proceedings
which is not vacated within sixty (60) days from the date thereof;

         (q)      An occurrence of any event or condition which results in a
default in the payment of any other indebtedness or the performance of any other
obligation of Maker to Payee;

         (r)      The liquidation, termination or dissolution of Maker; or

         (s)      A failure by Maker to comply with any of the other terms or
conditions specified herein or in any other of the Loan Documents or Maker's
failure to perform any of Maker's covenants under the Loan Documents and such
failure remains uncured for thirty (30) days after Payee provides written notice
of such failure in accordance with the terms of any of the Mortgages.

         5.2      Upon the occurrence of any Event of Default, the entire unpaid
balance of principal and interest evidenced by this Note, together with all sums
of money advanced by Payee in accordance with the terms of any one or more of
the Loan Documents, and all sums due and owing for any late charge or charges
hereunder (the foregoing being hereinafter collectively referred to as the
"Indebtedness") shall thereupon bear interest at the Default Rate of Interest,
and at the option of Payee, all the Indebtedness together with interest thereon
at the Default Rate of Interest shall immediately become due and payable
("Acceleration") without demand made therefor and without notice to any person,
notice of the exercise of said option being hereby expressly waived, and Payee
shall have all remedies of a secured party under law and equity to enforce the
payment of all of the Indebtedness, time being of the essence of this Note. The

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Default Rate of Interest shall be charged to Maker upon the occurrence of any
Event of Default notwithstanding any invoices or billing statements sent by
Payee to Maker indicating an interest rate to the contrary. In addition, any
waiver of Payee's right to charge the Default Rate of Interest or to accelerate
the Indebtedness must be made in writing and cannot be waived by oral
representation or the submission to Maker of monthly billing statements.

         5.3      Notwithstanding the foregoing, upon the occurrence of any
Event of Default and during the continuation thereof, and after maturity,
including maturity upon acceleration and failure to pay upon final maturity,
Payee, at its option, may also, if permitted under applicable law, do one or
both of the following: (a) increase the applicable interest rate under this Note
to the Default Rate of Interest, and (b) add any unpaid accrued interest to
principal and such sum will bear interest therefrom until paid at the rate
provided in this Note (including the Default Rate of Interest). The interest
rate under this Note will not exceed the maximum rate permitted by applicable
law.

                                   ARTICLE VI

                                  MISCELLANEOUS

         6.1      The failure of Payee to exercise any option herein provided
upon the occurrence of any Event of Default shall not constitute a waiver of the
right to exercise such option in the event of any continuing or subsequent Event
of Default. Maker hereby agrees that the maturity of all or any part of the loan
may be postponed or extended and that any covenants and conditions contained in
this Note or in any of the other Loan Documents may be waived or modified
without prejudice to the liability of Maker on said Note or Loan Documents.

         6.2      When this Note becomes due, by Acceleration or otherwise,
Payee may, at its option, demand, sue for, collect, or make any compromise or
settlement it deems desirable with reference to property held as security
herefor. Payee shall not be bound to take any steps necessary to preserve any
rights in the property held as security herefor against prior parties, which
Maker hereby assumes to do. Maker expressly authorizes Payee to deal in any
manner with any collateral and the security of every kind and character given to
secure the payment of Maker's obligations under this Note, and without limiting
the generality of the foregoing, Maker expressly authorizes Payee to waive any
rights which Payee may have relative to requiring additional collateral or to
surrendering or to releasing collateral held by Payee, or to substituting any
collateral held by Payee for other collateral of like kind, or of any kind, nor
shall the obligations of Maker under this Note, nor the rights of Payee under
the Loan Documents be diminished or in any manner affected by the failure of
Payee to exercise its rights with reference to such collateral or in any manner
failing to proceed against the collateral or security pledged or conveyed as
security for the obligations of Maker under this Note. The provisions hereof
shall apply and be controlling as to all property which may at any time be
security herefor.

         6.3      Maker hereby authorizes Payee, in its sole discretion, upon
the occurrence of an Event of Default, to apply all or any portion of the
balance of any account maintained by Maker with Payee to the payment or
reduction, in whole or in part, of any and all principal and interest then due,
whether by acceleration or otherwise, to Payee under this Note. Upon the
occurrence

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of any Event of Default, Payee shall have the right to setoff against all
obligations of Maker to Payee hereunder, whether matured or unmatured, all
amounts owing to Maker by Payee, whether or not then due and payable, and all
other funds or property of Maker on deposit with or otherwise held in the
custody of Payee or any of its affiliates, all without notice to or demand on
Maker, such notice and demand being hereby waived.

         6.4      Presentment for payment, notice of dishonor, protest, notice
of protest and diligence in bringing suit against any party hereto are hereby
waived by Maker.

         6.5      Maker hereby waives all relief from any and all appraisement
or exemption laws now in force or hereafter enacted.

         6.6      The obligations evidenced or created by this Note, as well as
all waivers of rights by Maker contained herein shall effectively bind and be
the obligations and waivers of any and all others who may at any time become
liable for the payment of all or any part of this Note, including, without
limitation, all indorsers and guarantors.

         6.7      Nothing herein contained, nor in any of the other Loan
Documents or other documents relating hereto, shall be construed or so operate
as to require Maker, or any person liable for the payment of the loan made
pursuant to this Note, to pay interest in an amount or at a rate greater than
the highest rate permissible under applicable law. Should any interest or other
charges paid by Maker, or any parties liable for the payment of the loan made
pursuant to this Note, result in the computation or earning of interest in
excess of the highest rate permissible under applicable law, then any and all
such excess shall be and the same is hereby waived by Payee, and all such excess
shall be automatically credited against and in reduction of the principal
balance, and any portion of said excess which exceeds the principal balance
shall be paid by Payee to Maker and any parties liable for the payment of the
loan made pursuant to this Note, it being the intent of the parties hereto that
under no circumstances shall Maker or any parties liable for the payment of the
loan hereunder, be required to pay interest in excess of the highest rate
permissible under applicable law. All interest paid or agreed to be paid to
Payee shall, to the extent permitted under applicable law, be amortized,
prorated, allocated and spread throughout the full period until payment in full
of this Note, including the period of any renewal or extensions thereof, so that
interest thereon for such full period shall not exceed the maximum amount
permitted by applicable law.

         Notwithstanding anything to the contrary herein contained, in the event
that the Effective Rate should ever exceed the highest rate permissible under
applicable law, thereby causing the interest accruing on the indebtedness
evidenced by this Note to be limited to such highest rate permissible under
applicable law, then any subsequent reduction in the Effective Rate shall not
reduce the rate of interest charged hereunder below the highest rate permissible
under applicable law until the total amount of interest accrued on the
indebtedness evidenced by this Note equals the amount of interest which would
have accrued on such indebtedness if the Effective Rate had been in effect at
all times in the period during which the rate charged thereon was limited to the
highest rate permissible under applicable law.

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         6.8      Maker acknowledges and agrees that all property pledged or
assigned by Maker to Payee as security for this Note has been pledged or
assigned as security for the entirety of all indebtedness evidenced by this
Note.

         6.9      If any provision (or any part of any provision) contained in
this Note shall for any reason be held or deemed to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision (or remaining part of the affected
provision) of this Note, and this Note shall be construed as if such invalid,
illegal or unenforceable provision (or part thereof) had never been contained
herein and the remaining provisions of this Note shall remain in full force and
effect.

         6.10     Maker hereby authorizes any attorney-at-law to appear in any
court of record in the State of Ohio or in any other state or territory of the
United States at any time after this Note becomes due, whether by acceleration
or otherwise, to waive the issuing and service of process, and to confess
judgment against Maker in favor of Payee for the amount due together with
interest, expenses, the costs of suit and reasonable counsel fees, and thereupon
to release and waive all errors, rights of appeal and stays of execution. Such
authority shall not be exhausted by one exercise, but judgment may be confessed
from time to time as any sums and/or costs, expenses or reasonable counsel fees
shall be due, by filing an original or a photostatic copy of this Note. Maker
waives any right to move any court for an order having any attorney or firm
representing Payee removed or disqualified as counsel for Payee as a result of
such attorney or firm confessing judgment against Maker in accordance with this
Section 6.10. Maker hereby expressly waives any conflicts of interest that may
now or hereafter exist as a result of any attorney representing Payee confessing
judgment against Maker and expressly consents to any attorney representing Payee
or to any other attorney to confess judgment against Maker in accordance with
this Section 6.10. Maker hereby further consents and agrees that Payee may pay
any attorney confessing judgment against Maker in accordance with this Section
6.10, a reasonable fee for confessing judgment and that any fees so paid may be
included in the amount of such judgment.

         6.11     Maker hereby agrees to pay to Payee all costs of preparing,
collecting and securing, and of attempting to collect and to secure this Note,
and all costs of foreclosing any of the Mortgages, including, without
limitation, reasonable attorneys' fees, appraisers' fees, court costs, notice
charges and title insurance charges, whether such attempt be made by suit, in
bankruptcy, or otherwise; and said costs and any other sums due Payee by virtue
of this Note or the any of the Mortgages may be included in any judgment or
decree rendered.

         6.12     Maker agrees that Payee may provide any information Payee may
have about Maker or about any matter relating to this Note to BANK ONE
CORPORATION, or any of its subsidiaries or affiliates or their successors, or to
any one or more purchasers or potential purchasers of this Note. Maker agrees
that Payee may at any time sell, assign or transfer one or more interests or
participations in all or any part of its rights or obligations in this Note to
one or more purchasers whether or not related to Payee.

         6.13     JURY WAIVER. THE UNDERSIGNED AND PAYEE (BY ITS ACCEPTANCE
HEREOF) HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY

                                       11
<PAGE>
AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE
UNDERSIGNED AND PAYEE ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT, ANY
OTHER LOAN DOCUMENT, ANY OTHER RELATED DOCUMENT, OR ANY RELATIONSHIP BETWEEN
PAYEE AND THE UNDERSIGNED. THIS PROVISION IS A MATERIAL INDUCEMENT TO PAYEE TO
PROVIDE THE FINANCING DESCRIBED HEREIN OR IN THE OTHER LOAN DOCUMENTS.

         This Note is delivered in the State of Ohio and is to be governed by
and construed in accordance with the laws of the State of Ohio. In addition to
any other appropriate jurisdiction determined by Payee, Maker hereby consents
to, and by execution of this Note, submits to the personal jurisdiction of the
Court of Common Pleas of Franklin County, Ohio and the United States District
Court sitting in Columbus, Ohio for the purposes of any judicial proceedings
which are instituted for the enforcement of this Note. Maker agrees that venue
is proper in said jurisdiction.

                                       12
<PAGE>
--------------------------------------------------------------------------------
WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.
--------------------------------------------------------------------------------

                                     GLIMCHER PROPERTIES LIMITED
                                     PARTNERSHIP, a Delaware limited partnership

                                            By: Glimcher Properties Corporation,
                                                its General Partner

                                                By: /s/ George A. Schmidt
                                                    ----------------------------
                                                    George A. Schmidt, Executive
                                                    Vice President

STATE OF OHIO,
COUNTY OF FRANKLIN, SS:

         The foregoing instrument was acknowledged before me this 30th day of
October, 2002, by George A. Schmidt, the Executive Vice President of Glimcher
Properties Corporation, the General Partner of Glimcher Properties Limited
Partnership, a Delaware limited partnership, on behalf of the corporation and
limited partnership.

                                     /s/ Barbara B. Howison
                                     -------------------------------------------
                                     Notary Public

                                     Commission Expires:  07/02/05

                                       13<PAGE>
                                                                  EXHIBIT 10.172

              MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT

         KNOW ALL MEN BY THESE PRESENTS, that GLIMCHER PROPERTIES LIMITED
PARTNERSHIP, a Delaware limited partnership, with offices at 20 South Third
Street, Columbus, Ohio 43215 ("Borrower"), in consideration of the payments to
Borrower which BANK ONE, NA, a national banking association, having an office
and place of business at 100 East Broad Street, Columbus, Ohio 43271-0208
("Lender"), has made contemporaneously herewith or may hereafter make, does
hereby grant, bargain, sell and convey unto Lender, its successors and assigns
forever, certain real property situated in the Commonwealth of Kentucky, County
of Henderson, and City of Henderson, being more fully described in Exhibit "A"
hereto and by this reference made a part hereof (the "Property"), together with
the following, to the extent now owned or hereafter acquired by Borrower: (a)
all improvements now or hereafter attached to or placed, erected, constructed or
developed on the Property (collectively the "Improvements"); (b) all fixtures,
furnishings, equipment, inventory, and other articles of personal property
(collectively the "Personal Property") that are now or hereafter attached to or
used in or about the Improvements or that are necessary or useful for the
complete and comfortable use and occupancy of the Improvements for the purposes
for which they were or are to be attached, placed, erected, constructed or
developed or that may be used in or related to the planning, development,
financing or operation of the Improvements, and all renewals of or replacements
or substitutions for any of the foregoing, whether or not the same are or shall
be attached to the Improvements or the Property; (c) all water and water rights,
timber, crops, and mineral interests pertaining to the Property; (d) all
building materials and equipment now or hereafter delivered to and intended to
be installed in or on the Improvements or the Property; (e) all plans and
specifications for the Improvements; (f) all contracts relating to the Property,
the Improvements or the Personal Property; (g) all deposits (including, without
limitation, tenants' security deposits), bank accounts, deposit accounts, funds,
documents, contract rights, accounts, commitments, construction agreements,
architectural agreements, payment intangibles, promissory notes, investment
property, letter of credit rights, supporting obligations, general intangibles
(including, without limitation, trademarks, trade names and symbols), tax
credits, instruments, notes and chattel paper arising from or by virtue of any
transactions related to the Property, the Improvements or the Personal Property
or relating directly or indirectly to the ownership, occupancy, use, operation,
and maintenance of the Property, Personal Property, and Improvements or the
construction of the Improvements; (h) all permits, licenses, franchises,
certificates, and other rights and privileges obtained in connection with the
Property, the Improvements or the Personal Property; (i) all proceeds arising
from or by virtue of the sale, lease or other disposition of the Property, the
Improvements, the Personal Property or any portion thereof or interest therein;
(j) all proceeds (including, without limitation, premium refunds) of each policy
of insurance relating to the Property, the Improvements or the Personal
Property; (k) all proceeds from the taking of any of the Property, the
Improvements, the Personal Property or any rights appurtenant thereto by right
of eminent domain or by private or other purchase in lieu thereof (including,
without limitation, change of grade of streets, curb cuts or other rights of
access), for any public or quasi public use under any law; (l) all right, title
and interest of Borrower in and to all streets, roads, public places, easements
and rights-of-way, existing or proposed, public or private, adjacent to or used
in connection with, belonging or pertaining to the Property; (m) all of the
leases, licenses, occupancy agreements, rents (including without limitation,
room rents), royalties, bonuses, issues, profits, revenues or other benefits of
the Property, the Improvements or the Personal
<PAGE>
Property, including, without limitation, cash or securities deposited pursuant
to leases to secure performance by the lessees of their obligations thereunder;
(n) all consumer goods located in, on or about the Property or the Improvements
or used in connection with the use or operation thereof; (o) all rights,
hereditaments and appurtenances pertaining to the foregoing; and (p) other
interests of every kind or nature that Borrower now has or at any time hereafter
acquires in and to the Property, Improvements, and Personal Property described
herein and all property that is used or useful in connection therewith,
including rights of ingress and egress and all reversionary rights or interests
of Borrower with respect thereto (all of the same, including the Property,
collectively the "Mortgaged Property").

         TO HAVE AND TO HOLD the Mortgaged Property, together with the rights,
privileges and appurtenances thereto belonging, unto Lender and its successors
and assigns forever, and Borrower hereby binds itself and its successors and
assigns to warrant and forever defend the Mortgaged Property unto Lender and its
successors and assigns, against the claim or claims of all persons claiming or
to claim the same or any part thereof, except as to those matters described in
Exhibit "B" attached hereto and by this reference made a part hereof (the
"Permitted Encumbrances").

         This Mortgage, Assignment of Rents and Security Agreement (the
"Mortgage") is given for the purpose of securing loan advances which Lender is
obligated to make to Borrower pursuant to the terms and conditions of the Loan
Agreement, of even date herewith, by and between Borrower and Lender (the "Loan
Agreement"), which Loan Agreement is by this reference made a part hereof.

         The parties hereto intend that, in addition to any other indebtedness
or obligations secured hereby, the Mortgage shall secure unpaid balances of loan
advances made after the Mortgage is delivered to the Recorder for record. Such
loan advances are and will be evidenced by a note or notes of Borrower. The
maximum amount of unpaid loan indebtedness, which shall consist of unpaid
balances of loan advances made either before or after, or both before and after,
the Mortgage is delivered to the Recorder for record, exclusive of interest
thereon and of advances for taxes, assessments, insurance premiums and costs
incurred for protection of the Mortgaged Property, which may be outstanding at
any time is Fifteen Million One Hundred Ninety Thousand Dollars
($15,190,000.00).

         THE MORTGAGE IS GIVEN TO SECURE: the full and prompt payment, whether
at stated maturity, accelerated maturity or otherwise, of any and all
indebtedness, whether fixed or contingent (collectively the "Indebtedness") and
the complete, faithful and punctual performance of any and all other obligations
(collectively the "Obligations") of Borrower to Lender under the terms and
conditions of (a) the Loan Agreement, (b) the Mortgage Note, of even date
herewith, made by Borrower to Lender, in the principal amount of Fifteen Million
One Hundred Ninety Thousand Dollars ($15,190,000.00) payable not later than
November 1, 2004, unless extended by its terms to November 1, 2005, and any and
all renewals, amendments, modifications, reductions and extensions thereof and
substitutions therefor (collectively the "Note"); (c) the Mortgage; and (d) any
other instrument, document, certificate or affidavit heretofore, now or
hereafter given by Borrower

                                       2
<PAGE>
evidencing or securing all or any part of the foregoing (the same together with
the Loan Agreement, the Note and the Mortgage, collectively the "Loan
Documents").

         In addition to any other debt or obligation secured hereby, this
Mortgage shall also secure unpaid balances of advances heretofore and hereafter
made with respect to the Mortgaged Property, for the payment of taxes,
assessments, insurance premiums or costs incurred for the protection of the
Mortgaged Property.

         Borrower, for itself and its successors and assigns, hereby covenants
with Lender, its successors and assigns, that:

         1.       Title. Borrower represents that it has good and marketable
title in fee simple to the Mortgaged Property, free and clear from all
conditions, restrictions, easements, liens, encumbrances and adverse claims
whatsoever, except the Permitted Encumbrances, and Borrower will forever warrant
and defend the same with the appurtenances above mentioned, unto Lender, its
successors and assigns, against the lawful claims of all persons whomsoever,
except as noted above. The Mortgaged Property constitutes the entirety of one or
more complete tax parcels. Borrower has good and marketable title to the
Personal Property, free and clear of any liens, charges, encumbrances, security
interests and adverse claims whatsoever. If the interest of Lender in the
Mortgaged Property or any part thereof shall be endangered or shall be attacked,
directly or indirectly, Borrower hereby authorizes Lender, at Borrower's
expense, to take all necessary and proper steps for the defense of such
interest, including the employment of counsel, the prosecution or defense of
litigation and the compromise or discharge of claims made against such interest.
Any sums so expended by Lender shall be charged against Borrower and collectible
in accordance with the terms of Section 12 hereof.

         2.       Further Assurances. Borrower shall furnish to Lender evidence
of the title of Borrower to the Mortgaged Property at the execution and delivery
hereof and from time to time hereafter as may be deemed necessary by and
satisfactory to Lender, and Borrower shall promptly pay the cost of said title
evidence when due and payable.

         Borrower, upon the request of Lender, shall execute, acknowledge,
deliver, file and record such further instruments and do such further acts as
may be necessary, desirable or proper to carry out the purposes of the Loan
Documents and to subject to the liens and security interests created thereby any
property intended by the terms thereof to be covered thereby, including
specifically, but without limitation, any renewals, additions, substitutions,
replacements, improvements or appurtenances to the Mortgaged Property.

         3.       Subrogation for Further Security. Lender shall be subrogated
for its further security to the lien, although released of record, of any and
all encumbrances paid with any advance of Indebtedness; provided, however, that
the terms and provisions hereof shall govern the rights and remedies of Lender
and shall supersede the terms, provisions, rights, and remedies under the lien
or liens to which Lender is subrogated.

                                       3
<PAGE>
         4.       Status Quo. Except as expressly permitted in any of the Loan
Documents or except with the written consent of Lender, which consent may be
withheld in Lender's sole discretion, Borrower shall not (a) sell, assign,
mortgage, pledge, lease or otherwise convey or further encumber the Mortgaged
Property, or any portion thereof, or legal, equitable or beneficial interest
therein; (b) contract for any of the same; (c) permit the Mortgaged Property, or
any portion thereof, or legal, equitable or beneficial interest therein, to be
subject to any superior or inferior lien or encumbrance; (d) subdivide,
resubdivide or submit to the condominium form of ownership all or any portion of
the Mortgaged Property, or any portion thereof; or (e) initiate or acquiesce in
any change in the zoning classification of the Property or any portion thereof.

         5.       Payment of Indebtedness. Borrower shall promptly pay the
Indebtedness as the same becomes due and payable.

         6.       Estoppel Certificate. Borrower shall furnish to Lender within
ten (10) days of any written request of Lender, a written statement, duly
acknowledged by Borrower, setting forth the sums secured by the Mortgage and any
right of set-off, counterclaim or other defense which Borrower alleges to exist
against such sums and obligations secured by the Mortgage.

         7.       Taxes and Other Impositions. Borrower shall promptly pay
before delinquency all taxes, assessments, charges, fines or impositions,
general, local or special (collectively the "Impositions"), levied upon the
Mortgaged Property, or any part thereof, or upon Lender's interest therein, or
upon the Mortgage or the Indebtedness, by any duly or legally constituted public
authority, municipality, township, county or state or the United States, and
exhibit the evidence of the payment thereof to Lender upon Lender's request;
provided that Borrower, at Borrower's own cost and expense may, if it shall in
good faith so desire, contest the validity or amount of any Impositions, in
which event Borrower may defer the payment thereof for such period as such
contest shall be actively prosecuted and shall be pending undetermined; provided
further, however, that Borrower shall not allow any such Impositions so
contested to remain unpaid for such length of time as shall permit all or any
portion of the Mortgaged Property, or the lien thereon created by such item, to
be sold by federal, state, county or municipal authority for the nonpayment
thereof. Pending any such contest, Borrower shall furnish to Lender an indemnity
bond secured by a deposit in cash or other security acceptable to Lender, in the
amount of the tax or assessment being contested by Borrower, plus a reasonable
additional sum to pay all costs, interest and penalties which may be imposed or
incurred in connection therewith.

         In the event that one or more of the Impositions on Lender's interest
in the Mortgaged Property, the Mortgage or the Indebtedness cannot be lawfully
paid by Borrower, then Borrower shall repay the Indebtedness in full without
penalty within sixty (60) days after demand therefor by Lender.

         8.       Insurance and Indemnification. Borrower shall provide,
maintain and keep in force at all times the following policies of insurance:

         (a)      Insurance against loss or damage to the Improvements and the
Personal Property caused by fire and any of the risks covered by insurance of
the type now known as "coverage

                                       4
<PAGE>
against all risks of physical loss", in an amount equal to one hundred percent
(100%) of the replacement cost of the Improvements and the Personal Property and
sufficient to prevent Borrower and Lender from becoming co-insurers, and
otherwise with terms and conditions acceptable to Lender;

         (b)      Comprehensive broad form general liability insurance, insuring
against any and all claims for personal injury, death or property damage
occurring on, in or about the Property, the Improvements and the adjoining
streets, sidewalks and passageways, subject to a combined single limit of not
less than Two Million Dollars ($2,000,000.00) for personal injury, death or
property damage arising out of any one accident, a general aggregate limit of
not less than Five Million Dollars ($5,000,000.00) and otherwise with terms and
conditions acceptable to Lender;

         (c)      Worker's compensation insurance (including employer's
liability insurance, if available and requested by Lender) for all employees of
Borrower engaged on or with respect to the Property and the Improvements in the
limits established by law, or, if limits are not so established, in such amounts
as are acceptable to Lender;

         (d)      During the course of any development or construction of the
Improvements, builder's completed value risk insurance against "all risks of
physical loss", including collapse and transit coverage, in the amounts set
forth in Subsection 8(a) above, and otherwise with terms and conditions
acceptable to Lender;

         (e)      Business interruption insurance and/or loss of "rental value"
insurance in an amount not less than the appraised rentals for the Mortgaged
Property for a minimum of twelve (12) months and terms and conditions acceptable
to Lender;

         (f)      If the Improvements are located in a federally designated
flood hazard area, a National Flood Insurance Association standard flood
insurance policy, plus insurance from a private insurance carrier if necessary,
for the duration of the Loan in the amount of the full insurable value of the
Improvements and Personal Property; and

         (g)      Such other insurance, including, without limitation, errors
and omissions insurance with respect to the contractors, architects and
engineers, and earthquake insurance, if necessary, and in such amounts, as may
from time to time be required by Lender against the same or other hazards.

         All such policies shall be in a form acceptable to Lender. Each policy
of casualty insurance shall contain a mortgagee clause, substantially in the
form of the standard New York mortgagee clause or otherwise acceptable to
Lender, showing Lender as mortgagee. Each policy of liability insurance shall
show Lender as an additional insured. Unless the policy so provides, each policy
of insurance required by the terms of the Mortgage shall contain an endorsement
by the insurer, for the benefit of Lender, (i) that any loss shall be payable in
accordance with the terms of such policy notwithstanding any act or negligence
of Borrower which might otherwise result in forfeiture of said insurance, (ii)
that any right of set-off, counterclaim or deductions against Borrower is waived

                                       5
<PAGE>
and (iii) that such policy shall not be canceled or changed except upon not less
than thirty (30) days prior written notice delivered to Lender.

         All such insurance policies and renewals thereof shall be written by
companies acceptable to Lender, in Lender's reasonable judgment. At least thirty
(30) days prior to the expiration date of any such policy or upon request,
Borrower shall promptly furnish to Lender a certificate of such insurance on
Accord Forms 25 and 27, or other forms acceptable to Lender, together with
copies of all renewal notices and all receipts of paid premiums.

         If Lender is made a party defendant to any litigation concerning the
Loan Documents or the Mortgaged Property or any part thereof or interest
therein, or the occupancy thereof by Borrower, then Borrower shall indemnify,
defend and hold Lender harmless from all liability by reason of said litigation,
including reasonable attorneys' fees and expenses incurred by Lender in any such
litigation, whether or not any such litigation is prosecuted to judgment.
Borrower waives any and all right to claim or recover against Lender, its
officers, employees, agents and representatives, for loss of or damage to
Borrower, the Mortgaged Property, other property of Borrower or the property of
others under control of Borrower from any cause insured against or required to
be insured against by the provisions of the Mortgage.

         Borrower shall not take out separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under this
Section unless Lender has approved the insurance company and the form and
content of the insurance policy, including, without limitation, the naming
thereon of Lender as a named insured with loss payable to Lender under a
standard mortgage clause of the character above described. Borrower shall
immediately notify Lender whenever any such separate insurance is taken out and
shall promptly deliver to Lender copies of the policies or binders evidencing
such insurance.

         Nothing contained in this Section shall prevent Borrower from keeping
the Improvements and Personal Property insured or causing the same to be insured
against the risks referred to in this Section under a policy or policies of
blanket insurance which may cover other property not subject to the lien of the
Mortgage; provided, however, that any such policy of blanket insurance (i) shall
specify therein the amount of the total insurance allocated to the Improvements
and Personal Property, which amount shall be not less than the amount otherwise
required to be carried under the Mortgage; (ii) shall not contain any clause
which would result in the insured thereunder becoming a co-insurer of any loss
with the insurer under such policy; and (iii) shall in all other respects comply
with the provisions of the Mortgage.

         Notwithstanding anything to the contrary contained in this Section, in
the event that the proceeds (the "Proceeds") payable with respect to any
casualty shall be less than or equal to $250,000.00, then Borrower shall have
the right to settle the insurance claim, and the right to retain the Proceeds,
so long as Borrower shall restore the Mortgaged Property to its condition prior
to such casualty, in a good and workmanlike manner, in compliance with any
applicable legal requirements and the requirements of any lease, free and clear
of liens, and shall remit to Lender promptly upon completion of such restoration
any remaining balance of such Proceeds

                                       6
<PAGE>
not used in the restoration of the Mortgaged Property for application to the
principal of the Indebtedness.

         If all of the following apply: (i) the Proceeds have been deposited
with Lender; (ii) in the case of insurance proceeds, the insurance carrier has
not denied liability to a named insured; (iii) Lender shall have been furnished
with an estimate of the cost of restoration accompanied by an architect's
certificate as to such costs and appropriate final plans and specifications for
reconstruction of the Improvements, all of which shall be approved by Lender;
(iv) the Improvements so restored or rebuilt shall be of at least equal value
and substantially the same character as prior to the damage or destruction and
appropriate for the purposes for which they were originally erected; (v)
Borrower shall have furnished Lender with evidence satisfactory to Lender that
all Improvements so restored and/or reconstructed and their use fully comply
with all zoning and building laws, ordinances and regulations, and with all
other applicable federal, state, and municipal laws and requirements; (vi) to
the extent that the estimated cost of restoration exceeds the Proceeds
available, Borrower shall have furnished a satisfactory bond of completion or
deposited with Lender such sums as may be necessary to pay such excess costs;
(vii) Lender shall have received notice within thirty (30) days after the fire
or other hazard or of the condemnation proceedings specifying the date of such
fire or other hazard or the date the notice of condemnation proceedings was
received and the request to Lender to make said Proceeds available to Borrower;
(viii) the aggregate monthly net income under all Leases, together with the
proceeds of any business interruption insurance with respect thereto, shall be
sufficient to pay during the period of reconstruction the monthly installments
required to be paid upon the Indebtedness as well as all impound payments which
may be required for taxes and insurance, and following reconstruction shall be
sufficient to pay the aforesaid sums as well as all other operating costs and
charges of the Mortgaged Property; (ix) Borrower shall not then be in default
under the Loan Documents, and (x) Lender determines in its sole and absolute
discretion that such restoration can be completed at least three (3) months
prior to the maturity date of the Note; then the Proceeds, less the actual
costs, fees and expenses, if any, incurred in connection with adjustment of loss
and Lender's administrative expenses relating to such loss and the disbursement
of the Proceeds shall be applied by Lender to the payment of all the costs of
the aforesaid restoration, repairs, replacement, rebuilding or alterations,
including the cost of temporary repairs or for the protection of property
pending the completion of permanent restoration, repairs, replacements,
rebuilding or alterations (all of which temporary repairs, protection of
property and permanent restoration, repairs, replacement, rebuilding or
alterations are hereinafter collective referred to as the "Restoration"), and
shall be paid out from time to time as such Restoration progresses upon the
written request of Borrower if the work for which payment is requested has been
done in a good and workmanlike manner and substantially in accordance with the
plans and specifications therefor. Each request shall be accompanied by the
following:

         (a)      A certificate signed by Borrower, dated not more than thirty
(30) days prior to such request, setting forth the following:

                  (i)      That the sum then requested either has been paid, or
         is justly due to contractors, subcontractors, materialmen, engineers,
         architects or other persons who have

                                       7
<PAGE>
         rendered services or furnished materials for the restoration therein
         specified or have paid for the same, the names and addresses of such
         persons, a brief description of such services and materials, the
         several amounts so paid or due to each of said persons in respect
         thereof (together with supporting statements and invoices for the
         same), that no part of such expenditures has been or is being made the
         basis of any previous or then pending request for the withdrawal of
         Proceeds or has been made out of any of the Proceeds received by
         Borrower, and that the sum then requested does not exceed the value of
         the services and materials described in the certificate.

                  (ii)     That, except for the amount, if any, stated pursuant
         to the foregoing subclause (a)(i) in such certificate to be due for
         services or materials, there is no outstanding indebtedness known to
         the persons signing such certificate, after due inquiry, which is then
         due for labor, wages, materials, supplies or services in connection
         with such Restoration.

                  (iii)    That the costs, as estimated by the persons signing
         such certificate, of the Restoration required to be done subsequent to
         the date of such certificate in order to complete and pay for the same,
         do not exceed the Proceeds, plus any amount or security approved by
         Lender and deposited by Borrower to defray such costs and remaining in
         the hands of Lender after payment of the sum requested in such
         certificate.

         (b)      A title insurance report or other evidence satisfactory to
Lender to the effect that there has not been filed with respect to the Mortgaged
Property, or any part thereof, any vendor's, contractor's, laborer's,
materialmen's, or other lien which has not been discharged of record or bonded.

         (c)      A certificate signed by the architect and/or engineer in
charge of the Restoration, who shall be selected by Borrower and approved in
writing by Lender, certifying to the facts set forth in subclause (i) above, and
that the Restoration is proceeding in accordance with the plans and
specifications approved by Lender and in accordance with all zoning, subdivision
and other governmental laws, ordinances, rules and regulations. Upon compliance
with the foregoing provisions, Lender shall, out of Proceeds (and the amount of
security approved by Lender, if any, deposited by Borrower to defray the costs
of the Restoration), pay or cause to be paid to Borrower or the persons named
(pursuant to subclause (a)(i) above) in such certificate the respective amounts
stated therein to have been paid by Borrower or to be due to them, as the case
may be.

         If the Proceeds at the time held by Lender, less the actual costs, fees
and expenses, if any, incurred in connection with the adjustment of the loss and
Lender's administrative expenses relating to such loss and the disbursement of
the Proceeds, shall be, in Lender's sole and absolute judgment, insufficient to
pay the entire cost of the Restoration, Borrower shall deposit with Lender any
such deficiency prior to disbursement of any additional portion of the Proceeds.

         No payment made prior to the final completion of the Restoration shall
exceed ninety percent (90%) of the value of the work performed from time to
time, and at all times the

                                       8
<PAGE>
undisbursed balance of said Proceeds remaining in the hands of Lender shall be
at least sufficient to pay for the cost of completion of the Restoration free
and clear of liens.

         Final payment shall be made upon delivery of an architect's certificate
and a certification by one of Lender's appraisers as to completion in accordance
with the final plans and specifications and compliance with all zoning,
building, subdivision and other governmental laws, ordinances, rules, and
regulations, and either the presentation of effective lien waivers from all
contractors, subcontractors and materialmen, or the expiration of the period
provided under applicable law for the filing of mechanic's and materialmen's'
liens. Lender may at its option require an endorsement to Lender's policy of
title insurance insuring the continued priority of the lien of this Mortgage as
to all sums advanced hereunder, such endorsement to be in form and substance
satisfactory to Lender and paid for by Borrower.

         Upon completion of the Restoration in a good and workmanlike manner in
accordance herewith, and provided that Lender has received satisfactory evidence
that the Restoration has been paid for in full and the Mortgaged Property is
free and clear of all liens, any balance of the Proceeds at the time held by
Lender (after reimbursement to Lender of all costs and expenses of Lender,
including administrative expenses, in connection with recovery of the same and
disbursement of such Proceeds for the Restoration), if any, shall be applied as
follows: (i) to the extent that such balance of the Proceeds is equal to or less
than the amount, if any, by which the value of the Mortgaged Property prior to
such damage or destruction exceeds the value of the Mortgaged Property after
such Restoration (for these purposes, the value of the Mortgaged Property shall
be determined by Lender in its discretion), then the portion of the balance of
the Proceeds equal to such excess amount shall be applied to the payment or
prepayment (without any prepayment premium) of the principal balance of the
Indebtedness in such order as Lender may determine, and any amounts so applied
shall reduce the Indebtedness pro tanto; and (ii) to the extent that the balance
of the Proceeds exceeds such excess amount, such portion of the balance of the
Proceeds shall be paid to Borrower.

         Lender shall cause Proceeds held by it pursuant to this Section to be
maintained in one or more interest-bearing accounts in accordance with Lender's
customary practices for the payment of interest on account balances, including,
without limitation, minimum balance requirements.

         If the insurance proceeds are applied to the payment of the sums
secured by the Mortgage, any such application of proceeds shall not extend or
postpone the due dates of the monthly installments referred to in the Note or
change the amounts of such installments. If the Mortgaged Property is sold
pursuant to Section 19 hereof or if Lender acquires title to the Mortgaged
Property, Lender shall have all of the right, title and interest of Borrower in
and to any insurance policies and unearned premiums thereon and in and to the
proceeds resulting from any damage to the Mortgaged Property prior to such sale
or acquisition.

         9.       Escrow. Borrower, in order to more fully protect the security
of the Mortgage, does hereby covenant and agree that, if Borrower shall fail to
timely pay taxes, assessments or insurance premiums as provided above, or if
there shall occur any other Event of Default, as hereinafter defined, and Lender
does not elect to exercise its other remedies, then Borrower shall,

                                       9
<PAGE>
upon request of Lender, pay to Lender on the first day of each month, until the
Indebtedness is fully paid, a sum equal to one-twelfth (1/12) of the known or
estimated yearly taxes, assessments, premiums for such insurance as may be
required by the terms hereof and, if applicable, any replacement reserve amounts
payable by Borrower. Lender shall hold such monthly payments which may be
mingled with its general funds, without obligation to pay interest thereon,
unless otherwise required by applicable law, to pay such taxes, assessments, and
insurance premiums when due. Borrower agrees that sufficient funds shall be so
accumulated for the payment of said charges one (1) month prior to the due date
thereof and that Borrower shall furnish Lender with proper statements covering
the same fifteen (15) days prior to the due dates thereof. In the event of
foreclosure of the Mortgage, or if Lender should take a deed in lieu of
foreclosure, the amount so accumulated shall be credited on account of the
unpaid principal or interest. If the total of the monthly payments as made under
this Section shall exceed the payments actually made by Lender, such excess
shall be credited on subsequent monthly payments of the same nature, but if the
total of such monthly payments so made under this Section shall be insufficient
to pay such taxes, assessments, and insurance premiums then due, then said
Borrower shall pay upon demand the amount necessary to make up the deficiency,
which payments shall be secured by the Mortgage. To the extent that all the
provisions of this Section for such payments of taxes, assessments, and
insurance premiums to Lender, are complied with, Borrower shall be relieved of
compliance with the covenants contained in Sections 7 and 8 herein as to the
amounts paid only, but nothing contained in this Section shall be construed as
in any way limiting the rights of Lender at its option to pay any and all of
said items when due.

         10.      Waste; Liens; Repair. Borrower shall neither commit nor permit
any waste on the Property, nor cause nor permit the same to become subject to
any superior or inferior lien or encumbrance, except as expressly permitted
herein. Borrower shall keep all Improvements now or hereafter erected on the
Property in good condition and repair. All Improvements hereafter erected shall
have been erected substantially in accordance with the plans and specifications
therefor, which shall be subject to Lender's prior approval except to the extent
such Improvements constitute the "build-out" of premises for tenants under
Leases or are not material.

         11.      Alterations. Borrower shall not remove, demolish or alter any
of the Improvements, now existing or hereafter constructed on the Property, or
any of the Personal Property in or on the Property or Improvements, except when
incident to the replacement of any of the items of Personal Property with items
of like kind and value.

         12.      Advances Secured by Mortgage. Upon failure of Borrower to
comply with any of these covenants and agreements as to the payment of taxes,
assessments, insurance premiums, repairs, protection of the Mortgaged Property
or Lender's lien thereon, and other charges and the costs of procurement of
title evidence and insurance as aforesaid, Lender may, at its option, pay the
same, and any sums so paid by Lender, together with the reasonable fees of
counsel employed by Lender in consultation and in connection therewith, shall be
charged against Borrower, shall be immediately due and payable by Borrower,
shall bear interest at the Default Rate of Interest, as defined in the Note, and
shall be a lien upon the Mortgaged Property, and be secured by the Mortgage, and
may be collected in the same manner as the principal debt hereby secured.

                                       10
<PAGE>
         13.      Use. Unless Lender otherwise agrees in writing, Borrower shall
not allow changes in the nature of the occupancy for which the Property and
Improvements were intended at the time the Mortgage was executed. Borrower shall
comply with the laws, ordinances, regulations and requirements of any
governmental body applicable to the Mortgaged Property, both during the
construction of any Improvements on the Property and subsequent to the
completion thereof, and not permit the use thereof for any illegal purpose.

         14.      Inspection. Any person authorized by Lender shall have the
right to enter upon and inspect the Mortgaged Property at all reasonable times.
Lender shall, however, have no duty to make such inspections. Any inspection of
the Mortgaged Property by Lender shall be entirely for its benefit, and Borrower
shall in no way rely or claim reliance thereon.

         15.      Minerals. Without the prior written consent of Lender, there
shall be no drilling or exploring for, or extraction, removal, or production of
minerals from the surface or subsurface of the Property. The term "minerals" as
used herein shall include, without limitation, oil, gas, casinghead gas, coal,
lignite, hydrocarbons, methane, carbon dioxide, helium, uranium and all other
natural elements, compounds and substances, including sand and gravel.

         16.      Condemnation. If all or any part of the Property or
Improvements are damaged, taken or acquired, either temporarily or permanently,
in any condemnation proceeding, or by exercise of the right of eminent domain,
or, with Lender's consent, by any conveyance in lieu thereof, the amount of any
award or other payment for such taking, or conveyance or damages made in
consideration thereof, to the extent of the full amount of the then remaining
unpaid Indebtedness, is hereby assigned to Lender who is empowered to collect
and receive the same and to give proper receipts therefor in the name of
Borrower, and the same shall be paid forthwith to Lender. The proceeds shall be
settled, deposited and held consistent with the terms and conditions of Section
8. If Borrower receives notice, written or unwritten, of any actual, intended or
threatened condemnation or eminent domain proceeding, Borrower shall forthwith
furnish a copy of such notice to Lender if such notice was written, or inform
Lender in writing if such notice was unwritten.

         17.      Assignment of Rents and Leases.

         (a)      Borrower hereby absolutely and unconditionally assigns,
transfers and sets over unto Lender and Lender's successors and assigns, all
present and future leases covering all or any part of the Mortgaged Property
(the "Leases"), together with any extensions or renewals thereof and any
guarantees of any tenants' obligations thereunder, and all of the rents,
royalties, bonuses, income, receipts, revenues, issues and profits now due or
which may hereafter become due under the Leases or any extensions or renewals
thereof, as well as all moneys due and to become due to Borrower under the
Leases for services, materials or installations supplied whether or not the same
were supplied under the terms of the Leases, all liquidated damages following
default under the Leases and all proceeds payable under any policy of insurance
covering loss of rents resulting from untenantability caused by damage to any
part of the Mortgaged Property (such rents, income, receipts, revenues, issues,
profits and other moneys assigned hereby are hereinafter collectively called
"Rents"), together with any and all rights and remedies which Borrower may

                                       11
<PAGE>
have against any tenant under any of the Leases or others in possession of the
Mortgaged Property or any part thereof for the collection or recovery of Rents
so assigned. Borrower is hereby expressly permitted to enter into Leases of the
Mortgaged Property subject to the terms and conditions contained herein. Prior
to an Event of Default, as hereinafter defined, Borrower shall have a license to
collect and receive all Rents as trustee for the benefit of Lender and Borrower.

         (b)      Borrower hereby represents, warrants and agrees that:

                  (i)      Borrower has good title to the Leases and Rents
         hereby assigned and has the right, power and capacity to make this
         assignment and no person or entity other than Borrower has or will have
         any right, title or interest in or to the Leases or Rents, except for
         the Permitted Encumbrances.

                  (ii)     Borrower shall, at Borrower's sole cost and expense,
         perform and discharge all of the obligations and undertakings of the
         landlord under the Leases and give prompt notice to Lender of any
         failure to do so. Borrower shall use all reasonable efforts to enforce
         or secure the performance of each and every obligation and undertaking
         of the tenants under the Leases and shall appear in and prosecute or
         defend any action or proceeding arising under, or in any manner
         connected with, the Leases or the obligations and undertakings of the
         tenants thereunder.

                  (iii)    Intentionally Omitted.

                  (iv)     Borrower shall not pledge, transfer, mortgage or
         otherwise encumber or assign the Leases or the Rents nor collect Rents
         more than thirty (30) days prior to accrual.

                  (v)      Borrower may, without Lender's prior written consent,
         (1) waive, excuse, condone or in any manner release or discharge any
         tenant under any of the Leases of premises comprising 5,000 square feet
         or less; (2) disaffirm, cancel, terminate or consent to any surrender
         of any of the Leases of premises comprising 5,000 square feet or less;
         or (3) enter into, modify, extend or in any way alter the terms of any
         of the Leases of premises comprising 5,000 square feet or less so as to
         reduce or diminish or postpone the payments of Rents. Borrower shall
         not without Lender's prior written consent, (1) waive, excuse, condone
         or in any manner release or discharge any tenant under any of the
         Leases exceeding 5,000 square feet; (2) disaffirm, cancel, terminate or
         consent to any surrender of any of the Leases exceeding 5,000 square
         feet; (3) modify, extend or in any way alter the terms of any of the
         Leases exceeding 5,000 square feet so as to reduce or diminish or
         postpone the payments of Rents; or (4) permit any assignment of any of
         the Leases.

                  (vi)     Borrower shall give prompt notice to Lender of any
         notice Borrower receives from any tenant under the Leases, specifying
         any claimed default by any party under the Leases exceeding 5,000
         square feet.

                                       12
<PAGE>
                  (vii)    Borrower hereby assigns any settlement payment for
         damages for termination of any of the Leases with Anchor Tenants (as
         said term is defined in the Loan Agreement) under the Federal
         Bankruptcy Code, or under any other federal, state, or local statute,
         to Lender, to be applied to the Indebtedness as Lender may elect, and
         agrees to endorse any check for such payment to the order of Lender.

                  (viii)   All existing Leases are valid, unmodified and in full
         force and effect, and Borrower has not performed any act or executed
         any instrument which might prevent Lender from operating under any of
         the terms and provisions thereof or which would limit Lender in such
         operation.

                  (ix)     Each of the Leases exceeding 5,000 square feet shall
         be in form and content satisfactory to Lender. Borrower shall not enter
         any Leases at below market rents without Lender's consent. Borrower
         will deliver to Lender certified and correct copies of each of the
         Leases once fully executed. Upon request of Lender, Borrower shall
         deliver to Lender a subordination and attornment agreement from each
         Anchor Tenant and such estoppel certificates from the tenants under the
         Leases as Lender shall reasonably request.

         (c)      Lender shall not be obligated to perform or discharge any
obligation or duty to be performed or discharged by Borrower under any of the
Leases; and Borrower hereby agrees to indemnify Lender for, and to save Lender
harmless from, any and all liability, damage or expense arising from any of the
Leases or from this assignment, including, without limitation, claims by tenants
for security deposits or for rental payments more than one (1) month in advance
and not delivered to Lender. All amounts indemnified against hereunder,
including reasonable attorneys' fees, if paid by Lender shall bear interest at
the Default Rate of Interest, as defined in the Note, and shall be payable by
Borrower immediately without demand and shall be secured hereby. This assignment
shall not place responsibility for the control, care, management, or repair of
the Mortgaged Property upon Lender, or make Lender responsible or liable for any
negligence in the management, operation, upkeep, repair or control of same
resulting in loss or damage or injury or death to any party.

         (d)      Upon the occurrence of an Event of Default as hereinafter
defined:

                  (i)      All Rents assigned hereunder shall be paid directly
         to Lender, and Lender may notify the tenants under the Leases (or any
         other parties in possession of the Mortgaged Property) to pay all of
         the Rents directly to Lender at the address specified in Section 27
         hereof, for which this assignment shall be sufficient warrant;

                  (ii)     Lender shall have the right to forthwith enter and
         take possession of the Mortgaged Property and to manage, operate, lease
         and develop the same; to collect as hereunder provided all or any Rents
         payable under the Leases; to make repairs as Lender deems appropriate;
         and to perform such other acts in connection with the management,
         operation, development, leasing and construction of the Mortgaged
         Property as Lender, in its sole discretion, may deem proper; and

                                       13
<PAGE>
                  (iii)    Lender shall have the right to forthwith enter into
         and upon the Mortgaged Property and take possession thereof, and to
         appoint an agent, or in the event of the institution of foreclosure
         proceedings to have a receiver appointed for the collection of the
         Rents.

         In the event that Lender shall pursue its remedies under Subsections
17(d)(ii) or (iii) above, the net income, after allowing a reasonable fee for
the collection thereof and the management of the Mortgaged Property, may be
applied toward the payment of taxes, assessments, insurance premiums, repairs,
protection of the Mortgaged Property or Lender's lien thereon, and other charges
against the Mortgaged Property and the costs of procurement of such insurance
and of evidence of title to the Mortgaged Property, or any of them, or in the
reduction of the Indebtedness and the payment of interest, as Lender may elect.
If the Rents are not sufficient to meet the costs, if any, of taking control of
and managing the Mortgaged Property and collecting the Rents, any funds expended
by Lender for such purposes shall become indebtedness of Borrower to Lender
secured by the Mortgage. Unless Lender and Borrower agree in writing to other
terms of payment, such amounts shall be payable upon demand from Lender to
Borrower and shall bear interest from the date of disbursement at the Default
Rate of Interest stated in the Note.

         The exercise or failure to exercise any of the above remedies shall not
in any way preclude or abridge the right of Lender to foreclose the Mortgage or
to take any other legal or equitable action thereon. Lender shall have such
rights or privileges as aforesaid regardless of the value of the Mortgaged
Property given as security hereunder, and regardless of the solvency or
insolvency of any party bound for the payment of the Indebtedness or the other
sums hereby secured.

         (e)      Borrower hereby authorizes and directs the tenants under the
Leases to pay Rents to Lender upon written demand by Lender, without further
consent of Borrower, and the tenants may rely upon any written statement
delivered by Lender to the tenants. Any such payment to Lender shall constitute
payment to Borrower under the Leases.

         18.      Security Agreement. The Mortgage is intended to be a security
agreement pursuant to the Uniform Commercial Code as enacted in the Commonwealth
of Kentucky (the "UCC") for any of the Mortgaged Property comprising personal
property and fixtures that may be subject to a security interest pursuant to the
UCC, and Borrower hereby grants to Lender a security interest in said personal
property and fixtures, whether said property is now existing or hereafter
acquired, together with replacements, replacement parts, additions, repairs and
accessories incorporated therein or affixed thereto and, if sold or otherwise
disposed of, the proceeds (including insurance proceeds) thereof. Borrower
agrees to execute and deliver to Lender, and hereby authorizes Lender to file
without execution by Borrower, UCC financing statements covering said personal
property and fixtures from time to time and in such form as Lender may require
to perfect or maintain the priority of Lender's security interest with respect
to said personal property and fixtures, and Borrower shall bear all costs
thereof, including all UCC searches reasonably required by Lender. Borrower
shall not create or suffer to be created any other security interest in said
personal property and fixtures, including replacements thereof and additions
thereto. Upon the occurrence of any Event of Default as set forth in Section 19
hereof,

                                       14
<PAGE>
Lender shall have the remedies of a secured party under the UCC and, at Lender's
option, may also invoke the remedies provided in Section 19 hereof with respect
to such property.

         19.      Default. The term "Event of Default" shall have the same
meaning as set forth in Section 5.1 of the Note, which meaning is incorporated
by this reference herein.

         Upon the occurrence of any such Event of Default, at the option of
Lender, without notice or demand, the same being hereby expressly waived, the
entire amount shall become immediately due and payable, and, in addition to any
other right or remedy which Lender may now or hereafter have at law, in equity,
or under the Loan Documents, Lender shall have the right and power: (a) to
foreclose upon the Mortgage and the lien hereof; (b) to sell the Mortgaged
Property according to law; and (c) to enter upon and take possession of the
Mortgaged Property and/or have a receiver appointed therefor as set forth in
Section 17 hereof.

         20.      No Waiver. The failure of Lender to exercise any option to
declare the maturity of the principal debt or any other sums hereby secured
under any provision of any of the Loan Documents, or to forbear from exercising
any right or remedy available to Lender under any provision of any of the other
Loan Documents, shall not be deemed a waiver of the right to exercise such
option, right or remedy or declare such maturity as to such past, continuing or
subsequent violation of any of the covenants and agreements of the Loan
Documents. Acceptance by Lender of partial payments shall not constitute a
waiver of any Event of Default. From time to time, Lender may, at Lender's
option, without giving notice to or obtaining the consent of Borrower,
Borrower's successors or assigns, or any junior lienholder, without liability on
Lender's part and notwithstanding Borrower's breach of any covenant or agreement
of Borrower in the Mortgage, extend the time for payment of the Indebtedness, or
any part thereof, reduce the payments thereon, release anyone liable on any of
said Indebtedness, accept a renewal note or notes therefor, release from the
lien of the Mortgage any part of the Mortgaged Property, take or release other
or additional security, reconvey any part of the Mortgaged Property, consent to
any map or plan of the Mortgaged Property, consent to the granting of any
easement, join in any extension or subordination agreement, or agree in writing
with Borrower to modify the rate of interest or period of amortization of the
Note or to change the amount of the monthly installments payable thereunder. Any
actions taken by Lender pursuant to the terms of this Section shall not affect
the obligation of Borrower or Borrower's successors or assigns to pay the sums
secured by the Mortgage and to observe the covenants of Borrower contained
herein, and shall not affect the lien or priority of lien of the Mortgage on the
Mortgaged Property. Borrower shall pay Lender a reasonable service charge,
together with such title insurance premiums and attorney's fees as may be
incurred at Lender's option for any such action if taken at Borrower's request.

         21.      Parcels; Waiver of Marshaling. In the event of foreclosure of
the Mortgage, the Mortgaged Property may be sold in one or more parcels or as an
entirety as Lender may elect.

         Notwithstanding the existence of any other security interests in the
Mortgaged Property held by Lender or by any other party, Lender shall have the
right to determine the order in which any or all of the Mortgaged Property shall
be subjected to the remedies provided herein. Lender shall have

                                       15
<PAGE>
the right to determine the order in which any or all portions of the
Indebtedness are satisfied from the proceeds realized upon the exercise of the
remedies provided herein. Borrower, any party who becomes liable for Borrower's
obligations and covenants under the Mortgage, and any party who now or hereafter
acquires a security interest in the Mortgaged Property, or any portion thereof,
hereby waives any and all right to require the marshaling of assets in
connection with the exercise of any of the remedies permitted by applicable law
or provided herein.

         22.      Costs of Collection. Borrower hereby agrees to pay to Lender
all costs of foreclosing the Mortgage, and all costs of enforcing, collecting
and securing, and of attempting to enforce, collect and secure, the Note,
including, without limitation, reasonable attorneys' fees, appraisers' fees,
court costs, notice charges and title insurance charges, whether such attempt be
made by suit, in bankruptcy, or otherwise, and such costs and any other sums due
Lender under the Loan Documents may be included in any judgment or decree
rendered.

         23.      Rent Roll and Financial Statements. Borrower shall maintain
full and correct books and records open to Lender's inspection showing in detail
the income, expenses and earnings of Borrower and of the Mortgaged Property, and
shall provide Lender the following:

         (a)      Within ninety (90) days from the end of each fiscal year of
Borrower, or as requested from time to time by Lender, an annual financial
statement consisting of a balance sheet, together with a complete itemized
statement of annual income and operating expenses of Borrower and of the
Mortgaged Property, certified by the chief financial officer of Borrower and on
forms prescribed by, or satisfactory to Lender. Lender reserves the right to
require the annual financial statements to be both duly audited and certified by
an independent certified public accountant satisfactory to Lender; and

         (b)      Within thirty (30) days after the end of each calendar
quarter, Borrower shall provide to Lender a certificate certified by the chief
financial officer of Borrower calculating for that preceding quarter DSCR, as
defined in the Loan Documents;

         (c)      Within forty-five (45) days from the end of each quarter,
year-to-date operating statements for the Mortgaged Property, certified by the
chief financial officer of Borrower and on forms prescribed by, or satisfactory
to, Lender, together with a rent roll of the Mortgaged Property, certified by
the chief financial officer of Borrower. The rent roll shall contain the name of
each tenant, square footage of leased premises, annual rent, lease commencement
date and lease expiration date.

         Borrower consents to Lender's disclosure of financial statements,
information or other material submitted to Lender to other financial
institutions in connection with the sale of participating interests in the loan
secured hereby and to bank regulators and auditors in connection with review of
the loan secured hereby. Except as set forth hereinabove or pursuant to court
order or federal regulation and except to the extent necessary to enforce the
Loan Documents, Lender agrees to maintain the confidentiality of such financial
statements. To the extent Lender shares such financial information with other
financial institutions in connection

                                       16
<PAGE>
with the sale of participating interests in the loan secured hereby, Lender
shall require such other financial institutions to enter into a confidentiality
agreement similar to the one stated herein.

         24.      Intentionally Omitted.

         25.      Intentionally Omitted.

         26.      Notice. Any notice required or permitted to be given hereunder
shall be in writing. If mailed by first class United States mail, postage
prepaid, registered or certified with return receipt requested, then such shall
be effective upon its deposit in the mails. Notice given in any other manner
shall be effective only if and when received by the addressee. For purposes of
notice, the addresses of Borrower and Lender shall be as set forth below;
provided however, that either party shall have the right to change such party's
address for notice hereunder to any other location within the continental United
States by the giving of thirty (30) days' notice to the other party.

         If to Borrower:        Glimcher Properties Limited Partnership
                                20 South Third Street
                                Columbus, OH 43215
                                Attn: General Counsel

         If to Lender:          Bank One, NA
                                100 East Broad Street
                                Columbus, Ohio 43271-0208
                                Attn:  David A. DeVictor,
                                       Vice President

         27.      Waiver of Homestead Rights. Borrower hereby waives any
exemption of the Mortgaged Property from process to which they may be entitled
under Chapter 427 of the Kentucky Revised Statutes.

         28.      Holding Over. Should Borrower, after an Event of Default,
continue in possession of the Mortgaged Property, either lawfully or unlawfully,
Borrower shall be a tenant from day to day, terminable at the will of either
Borrower or Lender, at a reasonable rental per diem, based upon the value of the
Mortgaged Property occupied and computed by Lender in its sole unfettered
discretion, such rental to be due and payable daily to Lender.

         29.      Changes in Rate of Interest. The Note contains provisions
allowing for changes in the interest rate and the monthly payment. This Mortgage
shall continue to secure the Indebtedness, with the same priority of lien,
notwithstanding any change in the rate of interest on the Note. None of the
Indebtedness can be modified, altered, amended or waived orally.

         30.      Miscellaneous. The covenants herein contained shall bind, and
the benefits and advantages shall inure to, the respective successors and
assigns of the parties hereto. Whenever used, the singular number shall include
the plural, the plural the singular, and the use of any

                                       17
<PAGE>
gender shall include all genders. If any provision of the Mortgage is illegal,
or hereafter rendered illegal, or is for any other reason void, voidable or
otherwise unenforceable, or hereafter rendered void, voidable or otherwise
unenforceable, the remainder of the Mortgage shall not be affected thereby, but
shall be construed as if it does not contain such provision. Each right and
remedy provided in the Mortgage is distinct and cumulative to all other rights
or remedies under the Mortgage or afforded by law or equity, and may be
exercised concurrently, independently or successively, in any order whatsoever.
The rights and duties of the parties hereto shall be governed by the laws of the
State of Ohio except that the provisions regarding the perfection of security
interests hereunder and the enforcement thereof shall be governed by the law of
the Commonwealth of Kentucky.

         LENDER, BY ACCEPTANCE OF THIS MORTGAGE, AND BORROWER HEREBY MUTUALLY,
VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVE FOR THE BENEFIT OF THE OTHER
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, IN CONNECTION WITH, RELATED TO,
OR INCIDENTAL TO THE LOAN DOCUMENTS, THE TRANSACTIONS RELATED THERETO OR THE
RELATIONSHIP ESTABLISHED THEREBY. THIS PROVISION IS A MATERIAL INDUCEMENT TO
LENDER AND BORROWER TO ENTER INTO THIS TRANSACTION. IT SHALL NOT IN ANY WAY
AFFECT, WAIVE, LIMIT, AMEND OR MODIFY LENDER'S ABILITY TO PURSUE ITS REMEDIES
INCLUDING, BUT NOT LIMITED TO, ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION
CONTAINED IN THE LOAN DOCUMENTS.

         PROVIDED, HOWEVER, that these presents are upon the condition that if
Borrower shall fully and promptly pay when due the Indebtedness and shall
completely, faithfully and punctually perform all of the Obligations under the
terms and conditions of the Loan Documents, then the Mortgage shall be void;
otherwise it shall remain in full force and effect in law and equity forever.

         IN WITNESS WHEREOF, Borrower has caused the Mortgage to be executed as
of the 30th day of October, 2002.

                                          BORROWER:

                                          GLIMCHER PROPERTIES LIMITED
                                          PARTNERSHIP, a Delaware limited
                                          partnership

                                          By: Glimcher Properties Corporation, a
                                          Delaware corporation

                                          By:  /s/ George A. Schmidt
                                               ---------------------------------
                                               George A. Schmidt,
                                          Its: Executive Vice President

                                       18
<PAGE>
STATE OF OHIO,
COUNTY OF FRANKLIN, SS:

         The foregoing instrument was acknowledged before me this ____________
day of October, 2002, by George A. Schmidt, the Executive Vice President of
Glimcher Properties Corporation, the General Partner of Glimcher Properties
Limited Partnership, a Delaware limited partnership, on behalf of the
corporation and limited partnership.

                                              /s/ Barbara B. Howison
                                              ----------------------------------
                                              Notary Public

Commission Expiration:  07/02/05

This instrument prepared by:

____________________________
Charles H. McCreary, Esq.
Bricker and Eckler LLP
100 South Third Street
Columbus, Ohio 43215

                                       19
<PAGE>
                                    EXHIBIT A

                                LEGAL DESCRIPTION
<PAGE>
                                    EXHIBIT B

                             PERMITTED ENCUMBRANCES

      All of the Permitted Encumbrances set forth in Lenders Title Policy.

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