Document:

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                                LOAN TERMS TABLE

Note Date: December Z 2-, 2000
Borrower: RD Whitegate Associates, L.P., a Missouri limited partnership
Original Principal Amount: $5,550,000.00          Loan No.: 53079
Note Rate: 7.55%                                  Servicing No.: 3124344
Monthly Payment Amount: $38,996.60                Borrower's TIN: 43-1706282
Amortization Commencement Date: February 1, 2001  Maturity Date: January 1, 2011
Lockout Period: Beginning on the date of this Note and ending on September 1,
2010

                                 PROMISSORY NOTE

         FOR VALUE RECEIVED, the borrower described in the Loan Terms Table set
forth above (the "Borrower") promises to pay to the order of BANK OF AMERICA,
N.A., a national banking association, its successors and assigns (the "Lender"),
the Original Principal Amount (as outstanding from time to time, the "Principal
Amount") under the terms and conditions of this promissory note (the "Note"),
together with interest thereon as provided in this Note, and in accordance with
the loan agreement of even date herewith by and between, among others, the
Borrower and the Lender (the "Loan Agreement"). This Note is secured by a deed
of trust mortgage or deed to secure debt of even date on certain property of the
Borrower (the "Security Instrument") and other agreements by and between the
Borrower and the Lender. 'Me Loan Terms Table is a part of this Note and all
terms used in this Note which are defined in the' Loan Terms Table shall have
the meaning set forth therein. Except as expressly provided otherwise in this
Note, the defined terms in the Loan Documents (as defined in the Loan Agreement)
are used herein with the same meaning. All of the terms, definitions, conditions
and covenants of the Loan Documents are expressly made a part of this Note by
reference in the same manner and with the same effect as if set forth herein at
length. Any holder of this Note is entitled to the benefits of and remedies
provided in the Loan Documents. Any Event of Default under any of the Loan
Documents is an Event of Default under the terms of this Note.

         1. Interest. The outstanding Principal Amount of the loan evidenced by
this Note (the "Loan") shall bear interest at a fixed rate per annum equal to
the Note Rate. Interest shall be computed based on the daily rate produced
assuming a 360 day year, multiplied by the actual number of days elapsed. Except
as otherwise set forth in this Note, interest shall be paid in arrears.

         2. Principal and Interest Payments. The Principal Amount and interest
thereon shall be payable at P. 0. Box 98672, Las Vegas, Nevada 89193-8672, Attn:
Capital Markets Servicing Group, or at such other place as the Lender may
designate from time to time in writing. An initial payment is due on the date
hereof for prepaid interest through and including the last day of the month in
which this Note is executed. Thereafter, except as may be adjusted in accordance
with the immediately following sentence, payment shall be made in consecutive
monthly installments of principal and interest in an amount equal to the Monthly
Payment Amount on the first day of each month beginning on the Amortization
Commencement Date (each a "Scheduled Payment Date"), until the entire
indebtedness evidenced hereby is fully paid, except that any remaining
indebtedness, if not sooner paid, shall be due and payable on the Maturity Date.
The Monthly Payment Amount is computed on the basis of an amortization schedule
for a loan having (a) a principal amount equal to the Original Principal Amount,
(b) an amortization period of 30 years, and (c) an annual interest rate equal to
the Note Rate, computed on the basis of a 360 day year consisting of 12 months
of 30 days each. The Borrower expressly understands and agrees that such
computation of interest based on a 360 day year consisting of 12 months of 30
days each is solely for the purpose of determining the Monthly Payment Amount,
and, notwithstanding such computation, interest shall accrue on the outstanding
Principal Amount of this Note as provided in paragraph I above. The Borrower
understands and acknowledges that such computation results in more interest
accruing on the Loan than if either a 30 day month and a 360 day year or the
actual number of days and a 365 day year were used to compute the accrual of
interest on the Loan. The Borrower recognizes that such computation will not
fully amortize the Loan within the amortization period set forth in clause (b)
above. Following any partial prepayment occurring solely as a result of the
application of insurance proceeds or condemnation awards pursuant to the terms
of

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the Loan Agreement~ the Lender may, in its sole and absolute discretion, adjust
the Monthly Payment Amount to give effect to any such partial prepayment,
provided however, that in no event will any such adjustment result in any such
installment becoming due and payable on any date after the Maturity Date.

         3. Late Charges. In the event any payment of interest or principal is
not received prior to the 10th day after the same is due (or such greater
period, if any, required by applicable law), the Borrower will pay to the
Lender, without further notice or demand, a late charge of four percent (4%) of
the amount of the overdue payment. This provision for late charges shall not be
deemed to extend the time for payment or be a "grace period" or "cure period"
that gives the Borrower a right to cure a Default Condition. Imposition of late
charges is not contingent upon the giving of any notice or lapse of any cure
period provided for in the Loan Documents.

         4. Prepayment, Defeasance. Except as otherwise expressly permitted by
this Section 4, no voluntary prepayments, whether in whole or in part, of the
outstanding Principal Amount or any other amount at any time due and owing under
this Note can be made by the Borrower or any other Person.

                  (a) Lockout Period. The Borrower has no right to make, and the
Lender shall have no obligation to accept, any voluntary prepayment, whether in
whole or in part, of the outstanding Principal Amount~ or any other amount under
this Note, at any time during the Lockout Period. Notwithstanding the foregoing,
if either (i) the Lender, in its sole and absolute discretion, accepts a full or
partial voluntary prepayment during the Lockout Period or (ii) there is an
involuntary prepayment during the Lockout Period, then, in either case, the
Borrower shall, in addition to any portion of the outstanding Principal Amount
prepaid (together with all interest accrued and unpaid thereon), pay to the
Lender a prepayment premium in an amount calculated in accordance with Section
4(c) hereof.

                  (b) Defeasance.

                  Notwithstanding any provisions of this Section 4 to the
contrary, including, without limitation, subsection (a) of this Section 4, at
any time other than during a REMIC Prohibition Period (as such period is defined
in clause (iv) below), the Borrower may cause the release of the Premises from
the lien of the Security Instrument and the other Loan Documents upon the
satisfaction of the following conditions:

                  (A) not less than 60 (but not more than 90) days prior written
notice shall be given to the Lender specifying a date on which the Defeasance
Collateral (as hereinafter defined) is to be delivered (the "Release Date"),
such date being on a Scheduled Payment Date;

                  (B) all accrued and unpaid interest and all other sums due
under this Note and under the other Loan Documents up to the Release Date,
including, without limitation, all fees, costs and expenses incurred by the
Lender and its agents in connection with such release (including, without
limitation, legal fees and expenses for the review and preparation of the
Defeasance Security Agreement (as hereinafter defined) and of the other
materials described in subsection 4(b)(i)(C) below and any related
documentation, and any servicing fees or costs related to such release), shall
be paid in full on or prior to the Release Date;

                  (C) the Borrower shall deliver to the Lender on or prior to
the Release Date:

                  (1) a pledge and security agreement, in form and substance
that would be satisfactory to a prudent lender, creating a first priority
security interest in favor of the Lender in the Defeasance Collateral, as
defined herein (the "Defeasance Security Agreement"), which shall provide, among
other things, that any excess amounts received by the Lender from the Defeasance

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                  Collateral over the amounts payable by the Borrower hereunder
shall be refunded to the Borrower promptly after each Scheduled Payment Date;

                  (2) direct, non-callable obligations of the United States of
America that provide for payments prior and as close as possible to (but in no
event later than) all successive Scheduled Payment Dates occurring after the
Release Date, with each such payment being equal to or greater than the amount
of the corresponding Monthly Payment Amount required to be paid under this Note
(including all amounts due on the Maturity Date) for the balance of the term
hereof (the "Defeasance Collateral"), each of which shall be duly endorsed by
the holder thereof as directed by the Lender or accompanied by a written
instrument of transfer in form and substance that would be satisfactory to a
prudent lender (including, without limitation, such certificates, documents and
instruments as may be required by the depository institution holding such
securities or the issuer thereof, as the case may be, to effectuate book-entry
transfers and pledges through the book-entry facilities of such institution) in
order to perfect upon the delivery of the Defeasance Security Agreement the
first priority security interest therein in favor of the Lender in conformity
with all applicable state and federal laws governing granting of such security
interests;

         (3) a certificate of the Borrower certifying that all of the
requirements set forth in this subsection 4(b)(i) have been satisfied;

         (4) one or more opinions of counsel for the Borrower in form and
substance and delivered by counsel that would be satisfactory to a prudent
lender stating, among other things, that (i) the Lender has a perfected first
priority security interest in the Defeasance Collateral and that the Defeasance
Security Agreement is enforceable against the Borrower in accordance with its
terms, (ii) in the event of a bankruptcy proceeding or similar occurrence with
respect to the Borrower, none of the Defeasance Collateral nor any proceeds
thereof will be property of the Borrower's estate under Section 541 of the U.S.
Bankruptcy Code or any similar statute and the grant of security interest
therein to the Lender shall not constitute an avoidable preference under Section
547 of the U.S. Bankruptcy Code or applicable state law, and (iii) the release
of the lien of the Security Instrument and the pledge of Defeasance Collateral
will not directly or indirectly result in or cause any REMIC (as defined in
clause (iv) below) that then holds this Note to fail to maintain its status as a
REMIC;

         (5) a certificate of the Borrower's independent certified public
accountant certifying that the Defeasance Collateral will generate monthly
amounts equal to or greater than the Monthly Payment Amount required to be paid
under this Note up to and including the Maturity Date; and

         (6) such other certificates, documents and instruments as the Lender
may reasonably require; and

         (D) in the event the Loan is held by a REMIC, the Lender has received
written confirmation from any rating agency rating any mortgage pass-through
certificates or other securities evidencing a beneficial interest in the Loan in
a public offering or private placement (the "Securities") that substitution of
the Defeasance Collateral will not result in a downgrade, withdrawal, or
qualification of the ratings then assigned to any of the Securities.

         (ii) Upon compliance with the requirements of subsection 4(b)(i), the
Premises shall be released from the lien of the Security Instrument and the
other Loan Documents, and the

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         Defeasance Collateral shall constitute collateral which shall secure
this Note and all other obligations under the Loan Documents. "Me Lender will,
at the Borrower's expense, execute and deliver any agreements reasonably
requested by the Borrower to release the lien of the Security Instrument and the
other Loan Documents from the Premises.

         (iii) Upon the release of the Premises in accordance with this Section
4(b), the Borrower shall (at the Lender's sole and absolute discretion) assign
all its obligations and rights under this Note, together with the pledged
Defeasance Collateral, to a successor entity designated by the Borrower which
would be satisfactory to a prudent lender. Such successor entity shall execute
an assignment and assumption agreement in form and substance that would be
satisfactory to a prudent lender pursuant to which such successor entity shall
assume the Borrower's obligations under this Note and the Defeasance Security
Agreement. As conditions to such assignment and assumption, the Borrower shall
(A) deliver to the Lender one or more opinions of counsel in form and substance
and delivered by counsel that would be satisfactory to a prudent lender stating,
among other things, that such assignment and assumption agreement is enforceable
against the Borrower and such successor entity in accordance with its terms and
that this Note, the Defeasance Security Agreement and the other Loan Documents,
as so assigned and assumed, are enforceable against such successor entity in
accordance with their respective terms, and opining to such other matters
relating to such successor entity and its organizational structure as the Lender
may reasonably require, and (B) pay all fees, costs and expenses incurred by the
Lender or its agents in connection with such assignment and assumption
(including, without limitation, legal fees and expenses and for the review of
the proposed transferee and the preparation of the assignment and assumption
agreement and related certificates, documents and instruments). Upon such
assignment and assumption, the Borrower shall be relieved of its obligations
hereunder, under the other Loan Documents and under the Defeasance Security
Agreement, except as expressly set forth in the assignment and assumption
agreement.

         (iv) For purposes of this Section 4, "REMIC Prohibition Period" means
the two-year period commencing with the "startup day" within the meaning of
Section 860G(a)(9) of the Internal Revenue Code of 1986, as amended from time to
time or any successor statute (the "Code") of any "real estate mortgage
investment conduit," within the meaning of Section 860D of the Code (any such
conduit, a "REMIC") that holds this Note. In no event shall the Lender have any
obligation to notify Borrower that a REMIC Prohibition Period is in effect with
respect to the Loan, except that the Lender shall notify the Borrower if any
REMIC Prohibition Period is in effect with respect to the Loan after receiving
any notice described in Section 4(b)(i)(A); provide, however, that the failure
of the Lender to so notify the Borrower shall not impose any liability upon the
Lender or grant the Borrower any right to defease the Loan during any such REMIC
Prohibition Period.

         (c) Involuntary Prepayment During the Lockout Period. During the
Lockout Period, in the event of any involuntary prepayment of the Principal
Amount or any other amount under this Note, whether in whole or in part, in
connection with or following the Lender's acceleration of the outstanding
Principal Amount of this Note or otherwise, and whether the Security Instrument
is satisfied or released by foreclosure (whether by power of sale or judicial
proceeding), deed in lieu of foreclosure or by any other means, including,
without limitation, repayment of the Loan by the Borrower or any other Person
pursuant to any statutory or common law right of redemption, the Borrower shall,
in addition to any portion of the outstanding Principal Amount prepaid (together
with all interest accrued and unpaid thereon), pay to the Lender a prepayment
premium in an amount calculated in accordance with this Section 4(c). Such
prepayment premium shall be in an amount equal to the greater of:

         (i) I% of the Principal Amount being prepaid; or

         (ii) the product obtained by multiplying:

                  (A) the Principal Amount being prepaid, times;

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                  (B) the difference obtained by subtracting (I) the Yield Rate
from (II) the Note Rate, times;

                  (C) the present value factor calculated using the following
formula:

                                            I-( 1 +0 n
                                            ---------
                                            r

                                            r      Yield Rate
                                            n      the number of years and any
                                                   fraction thereof, remaining
                                                   between the date the
                                                   prepayment is made and the
                                                   Maturity Date of this Note.

                  As used herein, "Yield Rate" means the yield rate for the
5.75% U.S. Treasury Security due August, 2010, as reported in The Wall Street
Journal on the fifth Business Day preceding the Prepayment Calculation Date. If
the Yield Rate is not published for the such U.S. Treasury Security, then the
"Yield Rate" shall mean the yield rate for the nearest equivalent U.S. Treasury
Security (as selected at the Lender's sole and absolute discretion) as reported
in The Wall Street Journal on the fifth Business Day preceding the Prepayment
Calculation Date. If the publication of such Yield Rate in The Wall Street
Journal is discontinued, the Lender shall determine such Yield Rate from another
source selected by the Lender in the Lender's sole and absolute discretion. The
"Prepayment Calculation Date" shall mean, as applicable, the date on which (i)
notice of prepayment is given to the Lender, in the case of a voluntary
prepayment of the entire outstanding Principal. Amount of this Note, (ii) the
Lender applies any partial prepayment to the reduction of the outstanding
Principal Amount hereof, in the case of a voluntary partial prepayment which is
accepted by the Lender, (iii) the Lender accelerates the Loan, in the case of a
prepayment resulting from acceleration, or (iv) the Lender applies funds held
under any Reserve Account, in the case of a prepayment resulting from such an
application (other than in connection with acceleration of the Loan).

                  (d) Insurance and Condemnation Proceeds, Excess Interest.
Notwithstanding any other provision herein to the contrary, the Borrower shall
not be required to pay any prepayment premium in connection with any prepayment
occurring solely as a result of (i) the application of insurance proceeds or
condemnation awards pursuant to the terms of the Loan Documents, or (ii) the
application of any interest in excess of the maximum rate permitted by
applicable law to the reduction of the Principal Amount in accordance with
Section 14 of this Note.

                  (e) After the Lockout Period. Commencing on the day after the
expiration of the Lockout Period, and upon giving the Lender at least 60 days
(but not more than 90 days) prior written notice, the Borrower may voluntarily
prepay (without premium) the Note in whole (but not in part) on a Scheduled
Payment Date. The Lender shall accept a prepayment pursuant to this Section 4(e)
on a day other than a Scheduled Payment Date provided that, in addition to
payment of the full outstanding principal balance of the Note, the Borrower pays
to the Lender a sum equal to the amount of interest which would have accrued on
this Note if such prepayment occurred on the next Scheduled Payment Date.

                  (f) Limitation on Partial Prepayments. In no event shall the
Lender have any obligation to accept a partial prepayment.

         5. Certain Provisions Regarding Payments, Prepayments and Remittances.

                  (a) Payments. Except to the extent that specific provisions
are set forth in this Note or any other Loan Document with respect to
application of payments, all payments received by the holder hereof shall be
applied, to the extent thereof, to the indebtedness secured by the Security
Instrument in such manner and order as the Lender may elect in its sole and
absolute discretion, any instructions from the Borrower or anyone else to the
contrary notwithstanding. All payments made as scheduled on this Note shall be
applied, to

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the extent thereof, to accrued but unpaid interest~ late charges, accrued fees,
the unpaid Principal Amount, and any other sums due and unpaid to the Lender in
connection with the Loan, in such manner and order as the Lender may elect in
its sole and absolute discretion.

                  (b) Prepayment . All involuntary prepayments on this Note
shall be applied, to the extent thereof, to accrued but unpaid interest on the
amount prepaid, to the remaining Principal Amount, and any other sums due and
unpaid to the Lender in connection with the Loan, in such manner and order as
the Lender may elect in its sole and absolute discretion, including but not
limited to application to principal installments in inverse order of maturity.

                  (c) Remittances. Remittances in payment of any part of the
indebtedness other than in the required amount in immediately available U.S.
funds shall not, regardless of any receipt or credit issued therefore,
constitute payment until the required amount is actually received by the holder
hereof in immediately available U.S. funds and shall be made and accepted
subject to the condition that any check or draft may be handled for collection
in accordance with the practices of the collecting bank or banks.

         6. Acceleration. If the full outstanding Principal Amount of this Note,
together with all interest due thereon and any other amounts due in respect of
this Note are not paid on or before the Maturity Date or are accelerated under
the terms of this Note or the other Loan Documents, the then outstanding
Principal Amount~ all accrued but unpaid interest thereon and any other amounts
due in respect of this Note shall bear interest at the Note Rate plus four
percent (4%) per annum until such Principal Amount and interest have been paid
in full. Further, in the event of such acceleration, the Loan, and all other
indebtedness of the Borrower to the Lender arising out of or in connection with
the Loan shall become immediately due and payable, without presentment demand,
protest dishonor or notice of any kind, all of which are hereby waived by the
Borrower.

         7. Non-Recourse Loan.

                  (a) Subject to the provisions of Section 8 and notwithstanding
any other provision in this Note or the other Loan Documents, the personal
liability of the Borrower and any Borrower Principal (collectively, the Persons
signing as the Borrower Principals at the end of this Note and/or signing any
Exceptions to Non Recourse Guaranty relating to the Loan) to pay the Principal
Amount and interest thereon and any other sums under this Note or the other Loan
Documents shall be limited to (i) the Premises, (ii) the Intangible Personalty,
(iii) all Rents and Profits distributed (except to the extent that the Borrower
did not have the legal right, because of a bankruptcy, receivership or similar
judicial proceeding, to direct the disbursement of such sums), and not applied,
first, to the payment of reasonable Operating Expenses as such Operating
Expenses become due and payable, and then, to the payment of the Principal
Amount and interest then due and payable under this Note and any other sums due
under the other Loan Documents (including but not limited to deposits, escrows
and/or reserves); provide , however that there shall be no personal liability
incurred for Rents and Profits distributed in any particular fiscal year to the
extent that all Operating Expenses and principal and interest due under this
Note and other sums due under the other Loan Documents (including but not
limited to deposits, escrows and/or reserves) are paid in full in that fiscal
year, and (iv) all other collateral or security now or hereafter securing the
Loan. '

                  (b) Except as provided above and in Section 8, the Lender
shall not seek (i) any judgment for a deficiency against the Borrower or any
Borrower Principal, or the Borrower's or any Borrower Principal's heirs, legal
representatives, successors or assigns, in any action to enforce any right or
remedy under the Security Instrument, or (ii) any judgment on this Note except
as may be necessary in any action brought under the Security Instrument to
enforce the lien against the Premises, the Intangible Personalty, the Rents and
Profits or any other collateral or security for the Loan, or to exercise any
remedies under any of the other Loan Documents.

         8. Exceptions to Non-Recourse Liability

                  (a) If, without obtaining the Lender's prior written consent,
which may be given or withheld in the Lender's sole and absolute discretion,
there shall occur any violation of any of the Recourse Covenants (as defined in
the Loan Agreement), and if such violation shall continue for thirty (30) days
after written notice

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<PAGE>

thereof from the Lender to the Borrower, then Section 7 hereof shall not apply
from and after the date which is thirty (30) days after such written notice and
the Borrower and the Borrower Principals (each individually on a joint and
several basis if more than one) shall be personally liable on a joint and
several basis for full recourse liability under this Note and the other Loan
Documents.

                  (b) Notwithstanding Section 7 hereof, and without limiting the
provisions of Section 8(a) above, the Borrower and the Borrower Principals (each
individually on a joint and several basis if more than one) shall be personally
liable on a joint and several basis, in the amount of any loss, damage or cost
(including but not limited to reasonable attorney's fees) resulting from (i)
fraud or intentional misrepresentation by the Borrower or any Borrower
Principal, or any agent, contractor or employee of the Borrower or any Borrower
Principal, in connection with obtaining the Loan, or in complying with any of
the Borrower's obligations under the Loan Documents, (ii) sale proceeds,
insurance proceeds, condemnation awards, security deposits from tenants or other
sums or payments received by or on behalf of the Borrower in its capacity as
owner of the Premises and not applied in accordance with the provisions of the
Loan Documents, (iii) all Rents and Profits distributed and not applied, first
to the payment of reasonable Operating Expenses as such Operating Expenses
become due and payable, and then, to the payment of the Principal Amount and
interest then due and payable under this Note and any other sums due under the
other Loan Documents (including but not limited to deposits, escrows and/or
reserves); provide however, that there shall be no personal liability incurred
for Rents and Profits distributed in any particular fiscal year to the extent
that all Operating Expenses and principal and interest due under this Note and
other sums due under the other Loan Documents (including but not limited to
deposits, escrows and/or reserves) are paid in full in that fiscal year, (iv)
the Borrower's failure following any Event of Default to deliver to the Lender
on demand all Rents and Profits, security deposits, books and records relating
to the Premises, (v) any damage to the Premises caused by the willful, wanton or
tortuous act or omission of the Borrower, (vi) the Borrower's failure to procure
and maintain the insurance policies required by the Loan Agreement~ (vii) the
Lender's incurrence* of or obligation to pay attorney's fees, costs, and
expenses in any bankruptcy, receivership or similar case filed by or against the
Borrower or any Borrower Principal, (viii) any transfer tax, recordation tax or
other similar tax or assessment, if any, in connection with the transactions
contemplated by the Loan Documents, or (ix) any violation of or failure to
comply with the Environmental Covenants (as defined in the Loan Agreement and/or
in any Environmental Indemnity Agreement relating to the Loan), including
without limitation, the indemnification obligations set forth therein, except to
the extent any such violation or failure to comply is recovered or recoverable
under any environmental insurance policy furnished by the Borrower to the Lender
in connection with the Loan. Notwithstanding the foregoing, neither the Borrower
nor the Borrower Principals shall be personally liable under clauses (ii), (iii)
or (iv) of this subsection 8(b) to the extent that the Borrower did not have the
legal right, because of a bankruptcy, receivership or similar judicial
proceeding, to direct the disbursement of the sums described in such clauses.

         9. No Waiver or Impairment. No provision of Section 7 or Section 8
shall (a) affect any guaranty or similar agreement executed in connection with
the debt evidenced by this Note, (b) release or reduce the debt evidenced by
this Note, (c) impair the right of the Lender to enforce the Environmental
Covenants pursuant to the provisions of the Loan Agreement~ (d) impair the lien
of the Security Instrument, or (e) constitute a waiver, forfeiture, abrogation
or limitation of or on any right accorded by any law establishing a
debtor-in-relief proceeding (including, but not limited to, Title 11, U.S. Code)
which right provides for the assertion in such debtor-in-relief proceeding of a
deficiency arising by reason of the insufficiency of collateral notwithstanding
an agreement of the holder thereof not to assert such a deficiency.

         10. Expenses. In the event this Note is not paid when due at any stated
or accelerated maturity, the Borrower will pay, in addition to the Principal
Amount and interest hereunder, all costs of collection, including reasonable
attorney's fees.

         11. Taxpayer Identification Number. This Note provides for the
Borrower's federal taxpayer identification number to be inserted on the first
page of this Note. If such number is not available at the time of execution of
this Note or is not inserted by the Borrower, the Borrower hereby authorizes and
directs the Lender to fill in such number on the first page of this Note when
the Borrower provides to Lender, advises the Lender of, or the Lender otherwise
obtains, such number.

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<PAGE>

         12. Notice. Any notice to the Lender provided for in this Note shall be
given in the manner provided in the Loan Agreement.

         13. Governing Law and Jurisdiction. This Note and the other Loan
Documents and all matters relating thereto shall be governed by and construed
and interpreted in accordance with the laws of the State where the Premises is
located. The Borrower and each Borrower Principal hereby submit to the
jurisdiction of the state and federal courts located in the State where the
Premises is located and agree that the Lender may, at its sole and absolute
discretion, enforce its rights under the Loan Documents in such courts.

         14. Maximum Rate of Interest. This Note is subject to the express
condition that at no time shall the Borrower be obligated or required to pay
interest on the Principal Amount at a rate which could subject the Lender to
either civil or criminal liability as a result of being in excess of the maximum
interest rate which the Borrower is permitted by applicable law to contract or
agree to pay. If by the terms of this Note, the Borrower is at any time required
or obligated to pay interest on the Principal Amount at a rate in excess of such
maximum rate, the rate of interest under this Note shall be deemed to be
immediately reduced to such maximum rate and all previous payments in excess of
the maximum rate shall be deemed to have been payments in reduction of the
Principal Amount and not on account of the interest due hereunder.

         15. No Third Party Beneficiary. The Borrower acknowledges and agrees
that (i) any arrangement for interim advancement of funds that originally is
made by the Lender named in this Note to any investor in the secondary mortgage
market is made pursuant to a contractual obligation of such Lender to that
investor that is independent of, and separate and distinct from, the obligation
of the Borrower for the full and prompt payment of the indebtedness evidenced by
this Note, (ii) the Borrower shall not be deemed to be a third party beneficiary
of such arrangement for interim advancement of funds, and (iii) no such interim
advancement arrangement shall constitute any person or entity making such
payment as a guarantor or surety of the Borrower's obligations, notwithstanding
the fact that the* obligations under any such interim advancement arrangement
may be calculated with reference to amounts payable under this Note or the other
Loan Documents.

         16. Assignment. The holder of this Note may, from time to time, sell,
assign or participate or offer to sell, assign or participate the Loan, or
interests therein, to one or more Persons (including, without limitation,
assignees or participants) and is hereby authorized to disseminate any
information it has pertaining to the Loan, including, without limitation, any
security for this Note and credit information on the Borrower, any of its
principals and any Borrower Principal, to any such Person, and to the extent, if
any, specified in any such sale, assignment or participation, such Person shall
have the rights and benefits with respect to this Note and the other Loan
Documents as such Person would have if such Person were the Lender hereunder.

         17. General Provisions. A determination that any provision of this Note
is unenforceable or invalid shall not affect the enforceability or validity of
any other provision and the determination that the application of any provision
of this Note to any Person or circumstance is illegal or unenforceable shall not
affect the enforceability or validity of such provision as it may apply to other
Persons or circumstances. The terms, provisions, covenants and conditions hereof
shall be binding upon the Borrower and the heirs, devisees, representatives,
successors and assigns of the Borrower. Captions and headings in this Note are
for convenience only and shall be disregarded in construing it.

         18. Business or Investment Purpose. The Borrower represents and
warrants that the Loan evidenced by this Note is solely for the business or
investment purpose of the Borrower, and is not for personal, household or
agricultural purposes.

         19. WRITTEN AGREEMENT.

                    (a) THE RIGHTS AND OBLIGATIONS OF THE BORROWER, EACH
                    BORROWER PRINCIPAL AND THE LENDER SHALL BE DETERMINED SOLELY
                    FROM THIS WRITTEN NOTE AND THE OTHER LOAN DOCUMENTS, AND ANY
                    PRIOR ORAL OR WRITTEN AGREEMENTS BETWEEN THE LENDER, THE
                    BORROWER AND ANY BORROWER PRINCIPAL CONCERNING THE SUBJECT
                    MATTER HEREOF AND OF THE OTHER LOAN DOCUMENTS ARE SUPERSEDED
                    BY AND MERGED INTO THIS NOTE AND THE OTHER LOAN DOCUMENTS.

                                        8

<PAGE>

          IN WITNESS WHEREOF, the Borrower has caused this Note to be duly
          executed under seal as of the day and year first above written.

                                       9

<PAGE>

                               BORROWER:
                               RD WHITEGATE ASSOCIATES, L.P.,
                               a Missouri limited partnership

                               By:     Acadia Property Holdings, LLC,
                                       a Delaware limited liability company, its
                                       General Partner

                               By:     Acadia Realty Limited Partnership,
                                       a Delaware limited partnership, its
                                       Sole Member

                               By:      Acadia Realty Trust, a
                                        Maryland real estate investment
                                        trust, its

                               By:
                               Name:

                               Title:   Senior Vice President

                                       10

<PAGE>

                  Acknowledgment and Agreement of the Borrower Principal to
Personal Liability for the Exceptions to Non-Recourse

                  Each Borrower Principal hereby represents to the Lender that
such Borrower Principal has a direct or an indirect ownership interest in the
Borrower and/or that he or she participates in the management of the Borrower.

                  BY SIGNING BELOW, each Borrower Principal understands, accepts
and agrees to the provisions of this Note, including without limitation,
Sections 7 and 8 above. No transfer of any Borrower Principal's ownership
interest in the Borrower or in any other entity which directly or indirectly has
an ownership interest in the Borrower shall release the Borrower Principal from
liability hereunder, unless the Lender shall have approved the transfer, the
substituted Borrower Principal and the release of the Borrower Principal from
liability hereunder in writing. Each Borrower Principal waives all rights of
subrogation, reimbursement, indemnification or contribution (whether
contractual, statutory or otherwise, including without limitation, any claim or
right of subrogation under the U.S. Bankruptcy Code or any successor statute)
against the Borrower by reason of any payment by the Borrower Principal pursuant
to this Note, including without limitation, Sections 7 and 8 above, prior to the
full and final satisfaction of this Note and all other obligations of the
Borrower under the Loan Documents. Each Borrower Principal waives any right to
assert against the Lender any defense, setoff, counterclaim, or claims which
such Borrower Principal may have against the Borrower or any other party liable
to the Lender for the obligations of the Borrower under the Loan Documents. Each
Borrower Principal waives all rights to notices of default or nonperformance by
the Borrower under the Loan Documents. Each Borrower Principal further waives
all rights to notices of the existence or the creation of new indebtedness by
the Borrower. Each Borrower Principal waives any right to enforce any remedy
which such Borrower Principal now has or may hereafter have against the Borrower
or any other Borrower Principal, and waives any benefit of, and any right to
participate in, any security now or hereafter held by the Lender.

                                       BORROWER PRINCIPAL(S):

                                       ACADIA REALTY LIMITED PARTNERSHIP,
                                       a Delaware limited partnership

                                       By:     Acadia Realty Trust a Maryland
                                               real estate investment trust, its

                                               By:______________________________
                                               Name. Robert Masters
                                               Title:   Vice President<PAGE>

                                            LOAN TERMS TABLE

<TABLE>
<CAPTION>
<S>                                                                                                <C>
Note Date: December __, 2000
Borrower: RD Columbia Associates L.P., a Delaware limited partnership
Original Principal Amount: $11,100,000.00                                                Loan No.: 53169
Note Rate: 7.55%                                                                         Servicing No.: 3124351
Monthly Payment Amount: $77,993.20                                                       Borrower's TIN: 13-3551305
Amortization Commencement Date: February 1, 2001                                         Maturity Date: January 1, 2011
Lockout Period: Beginning on the date of this Note and ending on September 1, 2010
</TABLE>

                                 PROMISSORY NOTE

         FOR VALUE RECEIVED, the borrower described in the Loan Terms Table set
forth above (the "Borrower") promises to pay to the order of BANK OF AMERICA,
N.A., a national banking association, its successors and assigns (the "Lender"),
the Original Principal Amount (as outstanding from time to time, the "Principal
Amount') under the terms and conditions of this promissory note (the "Note"),
together with interest thereon as provided in this Note, and in accordance with
the loan agreement of even date herewith by and between, among others, the
Borrower and the Lender (the "Loan Agreement"). This Note is secured by a deed
of trust, mortgage or deed to secure debt of even date on certain property of
the Borrower (the "Security Instrument") and other agreements by and between the
Borrower and the Lender. The Loan Terms Table is a part of this Note and all
terms used in this Note which are defined in the Loan Terms Table shall have the
meaning set forth therein. Except as expressly provided otherwise in this Note,
the defined terms in the Loan Documents (as defined in the Loan Agreement) are
used herein with the same meaning. All of the terms, definitions, conditions and
covenants of the Loan Documents are expressly made a part of this Note by
reference in the same manner and with the same effect as if set forth herein at
length. Any holder of this Note is entitled to the benefits of and remedies
provided in the Loan Documents. Any Event of Default under any of the Loan
Documents is an Event of Default under the terms of this Note.

         1. Interest. The outstanding Principal Amount of the loan evidenced by
this Note (the "Loan") shall bear interest at a fixed rate per annum equal to
the Note Rate. Interest shall be computed based on the daily rate produced
assuming a 360 day year, multiplied by the actual number of days elapsed. Except
as otherwise set forth in this Note, interest shall be paid in arrears.

         2. Principal and Interest Payments. The Principal Amount and interest
thereon shall be payable at P. 0. Box 98672, Las Vegas, Nevada 89193-8672, Attn:
Capital Markets Servicing Group, or at such other place as the Lender may
designate from time to time in writing. An initial payment is due on the date
hereof for prepaid interest through and including the last day of the month in
which this Note is executed. Thereafter, except as may be adjusted in accordance
with the immediately following sentence, payment shall be made in consecutive
monthly installments of principal and interest in an amount equal to the Monthly
Payment Amount on the first day of each month beginning on the Amortization
Commencement Date (each a "Scheduled Payment Date"), until the entire
indebtedness evidenced hereby is fully paid, except that any remaining
indebtedness, if not sooner paid, shall be due and payable on the Maturity Date.
The Monthly Payment Amount is computed on the basis of an amortization schedule
for a loan having (a) a principal amount equal to the Original Principal Amount,
(b) an amortization period of 30 years, and (c) an annual interest rate equal to
the Note Rate, computed on the basis of a 360 day year consisting of 12 months
of 30 days each. The Borrower expressly understands and agrees that such
computation of interest based on a 360 day year consisting of 12 months of 30
days each is solely for the purpose of determining the Monthly Payment Amount,
and, notwithstanding such computation, interest shall accrue on the outstanding
Principal Amount of this Note as provided in paragraph 1 above. The Borrower
understands and acknowledges that such computation results in more interest
accruing on the Loan than if either a 30 day month and a 360 day year or the
actual number of days and a 365 day year were used to compute the accrual of
interest on the Loan. The Borrower recognizes that such computation will not
fully amortize the Loan within the amortization period set forth in clause (b)
above. Following any partial prepayment occurring solely as a result of the
application of insurance proceeds or condemnation awards pursuant to the terms

<PAGE>

of the Loan Agreement, the Lender may, in its sole and absolute discretion,
adjust the Monthly Payment Amount to give effect to any such partial prepayment,
provide , however, that in no event will any such adjustment result in any such
installment becoming due and payable on any date after the Maturity Date.

         3. Late Charges. In the event any payment of interest or principal is
not received prior to the 10th day after the same is due (or such greater
period, if any, required by applicable law), the Borrower will pay to the
Lender, without further notice or demand, a late charge of four percent (4%) of
the amount of the overdue payment. This provision for late charges shall not be
deemed to extend the time for payment or be a "grace period" or "cure period"
that gives the Borrower a right to cure a Default Condition. Imposition of late
charges is not contingent upon the giving of any notice or lapse of any cure
period provided for in the Loan Documents.

         4. Prepayment; Defeasance. Except as otherwise expressly permitted by
this Section 4, no voluntary prepayments, whether in whole or in part, of the
outstanding Principal Amount or any other amount at any time due and owing under
this Note can be made by the Borrower or any other Person.

                  (a) Lockout Period. The Borrower has no right to make, and the
Lender shall have no obligation to accept, any voluntary prepayment, whether in
whole or in part, of the outstanding Principal Amount, or any other amount under
this Note, at any time during the Lockout Period. Notwithstanding the foregoing,
if either (i) the Lender, in its sole and absolute discretion, accepts a full or
partial voluntary prepayment during the Lockout Period or (ii) there is an
involuntary prepayment during the Lockout Period, then, in either case, the
Borrower shall, in addition to any portion of the outstanding Principal Amount
prepaid (together with all interest accrued and unpaid thereon), pay to the
Lender a prepayment premium in an amount calculated in accordance with Section
4(c) hereof

                  (b) Defeasance.

                  Notwithstanding any provisions of this Section 4 to the
         contrary, including, without limitation, subsection (a) of this Section
         4, at any time other than during a REMIC Prohibition Period (as such
         period is defined in clause (iv) below), the Borrower may cause the
         release of the Premises from the lien of the Security Instrument and
         the other Loan Documents upon the satisfaction of the following
         conditions:

                  (A) not less than 60 (but not more than 90) days prior written
                  notice shall be given to the Lender specifying a date on which
                  the Defeasance Collateral (as hereinafter defined) is to be
                  delivered (the "Release Date"), such date being on a Scheduled
                  Payment Date;

                  (B) all accrued and unpaid interest and all other sums due
                  under this Note and under the other Loan Documents up to the
                  Release Date, including, without limitation, all fees, costs
                  and expenses incurred by the Lender and its agents in
                  connection with such release (including, without limitation,
                  legal fees and expenses for the review and preparation of the
                  Defeasance Security Agreement (as hereinafter defined) and of
                  the other materials described in subsection 4(b)(i)(C) below
                  and any related documentation, and any servicing fees or costs
                  related to such release), shall be paid in full on or prior to
                  the Release Date;

                  (C) the Borrower shall deliver to the Lender on or prior to
                  the Release Date:

                           (1) a pledge and security agreement, in form and
                           substance that would be satisfactory to a prudent
                           lender, creating a first priority security interest
                           in favor of the Lender in the Defeasance Collateral,
                           as defined herein (the "Defeasance Security
                           Agreement"), which shall provide, among other things,
                           that any excess amounts received by the Lender from
                           the Defeasance

                                        2

<PAGE>

                           Collateral over the amounts payable by the Borrower
                           hereunder shall be refunded to the Borrower promptly
                           after each Scheduled Payment Date;

                           (2) direct, non-callable obligations of the United
                           States of America that provide for payments prior and
                           as close as possible to (but in no event later than)
                           all successive Scheduled Payment Dates occurring
                           after the Release Date, with each such payment being
                           equal to or greater than the amount of the
                           corresponding Monthly Payment Amount required to be
                           paid under this Note (including all amounts due on
                           the Maturity Date) for the balance of the term hereof
                           (the "Defeasance Collateral"), each of which shall be
                           duly endorsed by the holder thereof as directed by
                           the Lender or accompanied by a written instrument of
                           transfer in form and substance that would be
                           satisfactory to a prudent lender (including, without
                           limitation, such certificates, documents and
                           instruments as may be required by the depository
                           institution holding such securities or the issuer
                           thereof, as the case may be, to effectuate book-entry
                           transfers and pledges through the book-entry
                           facilities of such institution) in order to perfect
                           upon the delivery of the Defeasance Security
                           Agreement the first priority security interest
                           therein in favor of the Lender in conformity with all
                           applicable state and federal laws governing granting
                           of such security interests;

                           (3) a certificate of the Borrower certifying that all
                           of the requirements set forth in this subsection
                           4(b)(i) have been satisfied;

                           (4) one or more opinions of counsel for the Borrower
                           in form and substance and delivered by counsel that
                           would be satisfactory to a prudent lender stating,
                           among other things, that (i) the Lender has a
                           perfected first priority security interest in the
                           Defeasance Collateral and that the Defeasance
                           Security Agreement is enforceable against the
                           Borrower in accordance with its terms, (ii) in the
                           event of a bankruptcy proceeding or similar
                           occurrence with respect to the Borrower, none of the
                           Defeasance Collateral nor any proceeds thereof will
                           be property of the Borrower's estate under Section
                           541 of the U.S. Bankruptcy Code or any similar
                           statute and the grant of security interest therein to
                           the Lender shall not constitute an avoidable
                           preference under Section 547 of the U.S. Bankruptcy
                           Code or applicable state law, and (iii) the release
                           of the lien of the Security Instrument and the pledge
                           of Defeasance Collateral will not directly or
                           indirectly result in or cause any REMIC (as defined
                           in clause (iv) below) that then holds this Note to
                           fail to maintain its status as a REMIC;

                           (5) a certificate of the Borrower's independent
                           certified public accountant certifying that the
                           Defeasance Collateral will generate monthly amounts
                           equal to or greater than the Monthly Payment Amount
                           required to be paid under this Note up to and
                           including the Maturity Date; and

                           (6) such other certificates, documents and
                           instruments as the Lender may reasonably require; and

                  (D) in the event the Loan is held by a REMIC, the Lender has
                  received written confirmation from any rating agency rating
                  any mortgage pass-through certificates or other securities
                  evidencing a beneficial interest in the Loan in a public
                  offering or private placement (the "Securities") that
                  substitution of the Defeasance Collateral will not result in a
                  downgrade, withdrawal, or qualification of the ratings then
                  assigned to any of the Securities.

         (ii) Upon compliance with the requirements of subsection 4(b)(i), the
         Premises shall be released from the lien of the Security Instrument and
         the other Loan Documents, and the

                                       3

<PAGE>

         Defeasance Collateral shall constitute collateral which shall secure
         this Note and all other obligations under the Loan Documents. The
         Lender will, at the Borrower's expense, execute and deliver any
         agreements reasonably requested by the Borrower to release the lien of
         the Security Instrument and the other Loan Documents from the Premises.

         (iii) Upon the release of the Premises in accordance with this Section
         4(b), the Borrower shall (at the Lender's sole and absolute discretion)
         assign all its obligations and rights under this Note, together with
         the pledged Defeasance Collateral, to a successor entity designated by
         the Borrower which would be satisfactory to a prudent lender. Such
         successor entity shall execute an assignment and assumption agreement
         in form and substance that would be satisfactory to a prudent lender
         pursuant to which such successor entity shall assume the Borrower's
         obligations under this Note and the Defeasance Security Agreement. As
         conditions to such assignment and assumption, the Borrower shall (A)
         deliver to the Lender one or more opinions of counsel in form and
         substance and delivered by counsel that would be satisfactory to a
         prudent lender stating, among other things, that such assignment and
         assumption agreement is enforceable against the Borrower and such
         successor entity in accordance with its terms and that this Note, the
         Defeasance Security Agreement and the other Loan Documents, as so
         assigned and assumed, are enforceable against such successor entity in
         accordance with their respective terms, and opining to such other
         matters relating to such successor entity and its organizational
         structure as the Lender may reasonably require, and (B) pay all fees,
         costs and expenses incurred by the Lender or its agents in connection
         with such assignment and assumption (including, without limitation,
         legal fees and expenses and for the review of the proposed transferee
         and the preparation of the assignment and assumption agreement and
         related certificates, documents and instruments). Upon such assignment
         and assumption, the Borrower shall be relieved of its obligations
         hereunder, under the other Loan Documents and under the Defeasance
         Security Agreement, except as expressly set forth in the assignment and
         assumption agreement.

         (iv) For purposes of this Section 4, "REMIC Prohibition Period" means
         the two-year period commencing with the "startup day" within the
         meaning of Section 860G(a)(9) of the Internal Revenue Code of 1986, as
         amended from time to time or any successor statute (the "Code") of any
         "real estate mortgage investment conduit," within the meaning of
         Section 860D of the Code (any such conduit, a "REMIC") that holds this
         Note. In no event shall the Lender have any obligation to notify
         Borrower that a REMIC Prohibition Period is in effect with respect to
         the Loan, except that the Lender shall notify the Borrower if any REMIC
         Prohibition Period is in effect with respect to the Loan after
         receiving any notice described in Section 4(b)(i)(A); provided however,
         that the failure of the Lender to so notify the Borrower shall not
         impose any liability upon the Lender or grant the Borrower any right to
         defease the Loan during any such REMIC Prohibition Period.

                  (c) Involuntary Prepayment During the Lockout Period. During
the Lockout Period, in the event of any involuntary prepayment of the Principal
Amount or any other amount under this Note, whether in whole or in part, in
connection with or following the Lender's acceleration of the outstanding
Principal Amount of this Note or otherwise, and whether the Security Instrument
is satisfied or released by foreclosure (whether by power of sale or judicial
proceeding), deed in lieu of foreclosure or by any other means, including,
without limitation, repayment of the Loan by the Borrower or any other Person
pursuant to any statutory or common law right of redemption, the Borrower shall,
in addition to any portion of the outstanding Principal Amount prepaid (together
with all interest accrued and unpaid thereon), pay to the Lender a prepayment
premium in an amount calculated in accordance with this Section 4(c). Such
prepayment premium shall be in an amount equal to the greater of.

                  (i)  1% of the Principal Amount being prepaid; or

                  (ii) the product obtained by multiplying:

                           (A) the Principal Amount being prepaid, times;

                                       4

<PAGE>

                           (B) the difference obtained by subtracting (1) the
                           Yield Rate from (II) the Note Rate, times;

                           (C) the present value factor calculated using the
                           following formula:

                                    1-(1+r) -a

                                    r= Yield Rate

                                    n= the number of years and any Fraction
                                       thereof remaining between the date the
                                       prepayment is made and the Maturity Date
                                       of this Note.

         As used herein, "Yield Rate" means the yield rate for the 5.75% U.S.
Treasury Security due August, 2010, as reported in The Wall Street Journal on
the fifth Business Day preceding the Prepayment Calculation Date. If the Yield
Rate is not published for the such U.S. Treasury Security, then the "Yield Rate"
shall mean the yield rate for the nearest equivalent U.S. Treasury Security (as
selected at the Lender's sole and absolute discretion) as reported in The Wall
Street Journal on the fifth Business Day preceding the Prepayment Calculation
Date. If the publication of such Yield Rate in The Wall Street Journal is
discontinued, the Lender shall determine such Yield Rate from another source
selected by the Lender in the Lender's sole and absolute discretion. The
"Prepayment Calculation Date" shall mean, as applicable, the date on which (i)
notice of prepayment is given to the Lender, in the case of a voluntary
prepayment of the entire outstanding Principal Amount of this Note, (ii) the
Lender applies any partial prepayment to the reduction of the outstanding
Principal Amount hereof, in the case of a voluntary partial prepayment which is
accepted by the Lender, (iii) the Lender accelerates the Loan, in the case of a
prepayment resulting from acceleration, or (iv) the Lender applies funds held
under any Reserve Account, in the case of a prepayment resulting from such an
application (other than in connection with acceleration of the Loan).

                  (d) Insurance and Condemnation Proceeds-, Excess Interest.
Notwithstanding any other provision herein to the contrary, the Borrower shall
not be required to pay any prepayment premium in connection with any prepayment
occurring solely as a result of (i) the application of insurance proceeds or
condemnation awards pursuant to the terms of the Loan Documents, or (ii) the
application of any interest in excess of the maximum rate permitted by
applicable law to the reduction of the Principal Amount in accordance with
Section 14 of this Note.

                  (e) After the Lockout Period. Commencing on the day after the
expiration of the Lockout Period, and upon giving the Lender at least 60 days
(but not more than 90 days) prior written notice, the Borrower may voluntarily
prepay (without premium) the Note in whole (but not in part) on a Scheduled
Payment Date. The Lender shall accept a prepayment pursuant to this Section 4(e)
on a day other than a Scheduled Payment Date provided that, in addition to
payment of the full outstanding principal balance of the Note, the Borrower pays
to the Lender a sum equal to the amount of interest which would have accrued on
this Note if such prepayment occurred on the next Scheduled Payment Date.

                  (f) Limitation on Partial Prepayments. In no event shall the
Lender have any obligation to accept a partial prepayment.

         5. Certain Provisions Regarding Payments, Prepayments and Remittances.

                  (a) Payment . Except to the extent that specific provisions
are set forth in this Note or any other Loan Document with respect to
application of payments, all payments received by the holder hereof shall be
applied, to the extent thereof, to the indebtedness secured by the Security
Instrument in such manner and order as the Lender may elect in its sole and
absolute discretion, any instructions from the Borrower or anyone else to the
contrary notwithstanding. All payments made as scheduled on this Note shall be
applied, to

                                        5

<PAGE>

the extent thereof, to accrued but unpaid interest, late charges, accrued fees,
the unpaid Principal Amount, and any other sums due and unpaid to the Lender in
connection with the Loan, in such manner and order as the Lender may elect in
its sole and absolute discretion.

                  (b) Prepayments. All involuntary prepayments on this Note
shall be applied, to the extent thereof, to accrued but unpaid interest on the
amount prepaid, to the remaining Principal Amount, and any other sums due and
unpaid to the Lender in connection with the Loan, in such manner and order as
the Lender may elect in its sole and absolute discretion, including but not
limited to application to principal installments in inverse order of maturity.

                  (c) Remittances. Remittances in payment of any part of the
indebtedness other than in the required amount in immediately available U.S.
funds shall not, regardless of any receipt or credit issued therefor, constitute
payment until the required amount is actually received by the holder hereof in
immediately available U.S. funds and shall be made and accepted subject to the
condition that any check or draft may be handled for collection in accordance
with the practices of the collecting bank or banks.

         6. Acceleration. If the full outstanding Principal Amount of this Note,
together with all interest due thereon and any other amounts due in respect of
this Note are not paid on or before the Maturity Date or are accelerated under
the terms of this Note or the other Loan Documents, the then outstanding
Principal Amount, all accrued but unpaid interest thereon and any other amounts
due in respect of this Note shall bear interest at the Note Rate plus four
percent (4%) per annurn until such Principal Amount and interest have been paid
in full. Further, in the event of such acceleration, the Loan, and all other
indebtedness of the Borrower to the Lender arising out of or in connection with
the Loan shall become immediately due and payable, without presentment, demand,
protest, dishonor or notice of any kind, all of which are hereby waived by the
Borrower.

         7. Non-Recourse Loan.

                  (a) Subject to the provisions of Section 8 and notwithstanding
any other provision in this Note or the other Loan Documents, the personal
liability of the Borrower and any Borrower Principal (collectively, the Persons
signing as the Borrower Principals at the end of this Note and/or signing any
Exceptions to Non Recourse Guaranty relating to the Loan) to pay the Principal
Amount and interest thereon and any other sums under this Note or the other Loan
Documents shall be limited to (i) the Premises, (ii) the Intangible Personalty,
(iii) all Rents and Profits distributed (except to the extent that the Borrower
did not have the legal right, because of a bankruptcy, receivership or similar
judicial proceeding, to direct the disbursement of such sums), and not applied,
first, to the payment of reasonable Operating Expenses as such Operating
Expenses become due and payable, and then, to the payment of the Principal
Amount and interest then due and payable under this Note and any other sums due
under the other Loan Documents (including but not limited to deposits, escrows
and/or reserves); provided however, that there shall be no personal liability
incurred for Rents and Profits distributed in any particular fiscal year to the
extent that all Operating Expenses and principal and interest due under this
Note and other sums due under the other Loan Documents (including but not
limited to deposits, escrows and/or reserves) are paid in full in that fiscal
year, and (iv) all other collateral or security now or hereafter securing the
Loan.

                  (b) Except as provided above and in Section 8, the Lender
shall not seek (i) any judgment for a deficiency against the Borrower or any
Borrower Principal, or the Borrower's or any Borrower Principal's heirs, legal
representatives, successors or assigns, in any action to enforce any right or
remedy under the Security Instrument, or (ii) any judgment on this Note except
as may be necessary in any action brought under the Security Instrument to
enforce the lien against the Premises, the Intangible Personalty, the Rents and
Profits or any other collateral or security for the Loan, or to exercise any
remedies under any of the other Loan Documents.

         8. Exceptions to Non-Recourse

                  (a) If, without obtaining the Lender's prior written consent,
which may be given or withheld in the Lender's sole and absolute discretion,
there shall occur any violation of any of the Recourse Covenants (as defined in
the Loan Agreement), and if such violation shall continue for thirty (30) days
after written notice

                                       6

<PAGE>

thereof from the Lender to the Borrower, then Section 7 hereof shall not apply
from and after the date which is thirty (30) days after such written notice and
the Borrower and the Borrower Principals (each individually on a joint and
several basis if more than one) shall be personally liable on a joint and
several basis for full recourse liability under this Note and the other Loan
Documents.

                  (b) Notwithstanding Section 7 hereof, and without limiting the
provisions of Section 8(a) above, the Borrower and the Borrower Principals (each
individually on a joint and several basis if more than one) shall be personally
liable on a joint and several basis, in the amount of any loss, damage or cost
(including but not liniited to reasonable attorney's fees) resulting from (i)
fraud or intentional misrepresentation by the Borrower or any Borrower
Principal, or any agent, contractor or employee of the Borrower or any Borrower
Principal, in connection with obtaining the Loan, or in complying with any of
the Borrower's obligations under the Loan Documents, (ii) sale proceeds,
insurance proceeds, condemnation awards, security deposits from tenants or other
sums or payments received by or on behalf of the Borrower in its capacity as
owner of the Premises and not applied in accordance with the provisions of the
Loan Documents, (iii) all Rents and Profits distributed and not applied, first,
to the payment of reasonable Operating Expenses as such Operating Expenses
become due and payable, and then, to the payment of the Principal Amount and
interest then due and payable under this Note and any other sums due under the
other Loan Documents (including but not limited to deposits, escrows and/or
reserves); provided however, that there shall be no personal liability incurred
for Rents and Profits distributed in any particular fiscal year to the extent
that all Operating Expenses and principal and interest due under this Note and
other sums due under the other Loan Documents (including but not limited to
deposits, escrows and/or reserves) are paid in full in that fiscal year, (iv)
the Borrower's failure following any Event of Default to deliver to the Lender
on demand all Rents and Profits, security deposits, books and records relating
to the Premises, (v) any damage to the Premises caused by the willful, wanton or
tortious act or omission of the Borrower, (vi) the Borrower's failure to procure
and maintain the insurance policies required by the Loan Agreement, (vii) the
Lender's incurrence of or obligation to pay attorney's fees, costs, and expenses
in any bankruptcy, receivership or similar case filed by or against the Borrower
or any Borrower Principal, (viii) any transfer tax, recordation tax or other
similar tax or assessment, if any, in connection with the transactions
contemplated by the Loan Documents, or (ix) any violation of or failure to
comply with the Environmental Covenants (as defined in the Loan Agreement and/or
in any Environmental Indemnity Agreement relating to the Loan), including
without limitation, the indemnification obligations set forth therein, except to
the extent any such violation or failure to comply is recovered or recoverable
under any environmental insurance policy furnished by the Borrower to the Lender
in connection with the Loan. Notwithstanding the foregoing, neither the Borrower
nor the Borrower Principals shall be personally liable under clauses (ii), (iii)
or (iv) of this subsection 8(b) to the extent that the Borrower did not have the
legal right, because of a bankruptcy, receivership or similar judicial
proceeding, to direct the disbursement of the sums described in such clauses.

         9. No Waiver or Impairment. No provision of Section 7 or Section 8
shall (a) affect any guaranty or similar agreement executed in connection with
the debt evidenced by this Note, (b) release or reduce the debt evidenced by
this Note, (c) impair the right of the Lender to enforce the Environmental
Covenants pursuant to the provisions of the Loan Agreement, (d) impair the lien
of the Security Instrument, or (e) constitute a waiver, forfeiture, abrogation
or limitation of or on any right accorded by any law establishing a
debtor-in-relief proceeding (including, but not limited to, Title 11, U.S. Code)
which right provides for the assertion in such debtor-in-relief proceeding of a
deficiency arising by reason of the insufficiency of collateral notwithstanding
an agreement of the holder thereof not to assert such a deficiency.

         10. Expenses. In the event this Note is not paid when due at any stated
or accelerated maturity, the Borrower will pay, in addition to the Principal
Amount and interest hereunder, all costs of collection, including reasonable
attorney's fees.

         11. Taxpayer Identification Number. This Note provides for the
Borrower's federal taxpayer identification number to be inserted on the first
page of this Note. If such number is not available at the time of execution of
this Note or is not inserted by the Borrower, the Borrower hereby authorizes and
directs the Lender to fill in such number on the first page of this Note when
the Borrower provides to Lender, advises the Lender of, or the Lender otherwise
obtains, such number.

                                       7

<PAGE>
         12. Notice. Any notice to the Lender provided for in this Note shall be
given in the manner provided in the Loan Agreement.

         13. Governing Law and Jurisdiction. This Note and the other Loan
Documents and all matters relating thereto shall be governed by and construed
and interpreted in accordance with the laws of the State where the Premises is
located. The Borrower and each Borrower Principal hereby submit to the
jurisdiction of the state and federal courts located in the State where the
Premises is located and agree that the Lender may, at its sole and absolute
discretion, enforce its rights under the Loan Documents in such courts.

         14. Maximum Rate of Interest. This Note is subject to the express
condition that at no time shall the Borrower be obligated or required to pay
interest on the Principal Amount at a rate which could subject the Lender to
either civil or criminal liability as a result of being in excess of the maximum
interest rate which the Borrower is permitted by applicable law to contract or
agree to pay. If by the terms of this Note, the Borrower is at any time required
or obligated to pay interest on the Principal Amount at a rate in excess of such
maximum rate, the rate of interest under this Note shall be deemed to be
immediately reduced to such maximum rate and all previous payments in excess of
the maximum rate shall be deemed to have been payments in reduction of the
Principal Amount and not on account of the interest due hereunder.

         15. No Third Party Beneficiary. The Borrower acknowledges and agrees
that (i) any arrangement for interim advancement of funds that originally is
made by the Lender named in this Note to any investor in the secondary mortgage
market is made pursuant to a contractual obligation of such Lender to that
investor that is independent of, and separate and distinct frorn, the obligation
of the Borrower for the full and prompt payment of the indebtedness evidenced by
this Note, (ii) the Borrower shall not be deemed to be a third party beneficiary
of such arrangement for interim advancement of funds, and (iii) no such interim
advancement arrangement shall constitute any person or entity making such
payment as a guarantor or surety of the Borrower's obligations, notwithstanding
the fact that the obligations under any such interim advancement arrangement may
be calculated with reference to amounts payable under this Note or the other
Loan Documents.

         16. Assignment. The holder of this Note may, from time to time, sell,
assign or participate or offer to sell, assign or participate the Loan, or
interests therein, to one or more Persons (including, without limitation,
assignees or participants) and is hereby authorized to disseminate any
information it has pertaining to the Loan, including, without limitation, any
security for this Note and credit information on the Borrower, any of its
principals and any Borrower Principal, to any such Person, and to the extent, if
any, specified in any such sale, assignment or participation, such Person shall
have the rights and benefits with respect to this Note and the other Loan
Documents as such Person would have if such Person were the Lender hereunder.

         17. General Provisions. A determination that any provision of this Note
is unenforceable or invalid shall not affect the enforceability or validity of
any other provision and the determination that the application of any provision
of this Note to any Person or circumstance is illegal or unenforceable shall not
affect the enforceability or validity of such provision as it may apply to other
Persons or circumstances. The terms, provisions, covenants and conditions hereof
shall be binding upon the Borrower and the heirs, devisees, representatives,
successors and assigns of the Borrower. Captions and headings in this Note are
for convenience only and shall be disregarded in construing it.

         18. Business or Investment Purpose. The Borrower represents and
warrants that the Loan evidenced by this Note is solely for the business or
investment purpose of the Borrower, and is not for personal, household or
agricultural purposes.

         19. WRITTEN AGREEMENT.

                  (a) THE RIGHTS AND OBLIGATIONS OF THE BORROWER, EACH BORROWER
PRINCIPAL AND THE LENDER SHALL BE DETERMINED SOLELY FROM THIS WRITTEN NOTE AND
THE OTHER LOAN DOCUMENTS, AND ANY PRIOR ORAL OR WRITTEN AGREEMENTS BETWEEN THE
LENDER, THE BORROWER AND ANY BORROWER PRINCIPAL CONCERNING THE SUBJECT MATTER
HEREOF AND OF THE OTHER LOAN DOCUMENTS ARE SUPERSEDED BY AND MERGED INTO THIS
NOTE AND THE OTHER LOAN DOCUMENTS.

                                       8

<PAGE>

                  (b) THIS NOTE AND THE OTHER LOAN DOCUMENTS MAY NOT BE VARIED
BY ANY ORAL AGREEMENTS OR DISCUSSIONS THAT OCCUR BEFORE, CONTEMPORANEOUSLY WITH,
OR SUBSEQUENT TO THE EXECUTION OF THIS NOTE OR THE LOAN DOCUMENTS.

                  (c) THIS WRITTEN NOTE AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENTS BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         20. WAIVER OF JURY TRIAL. THE LENDER, THE BORROWER AND EACH BORROWER
PRINCIPAL HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO,
THE SUBJECT MATTER OF THIS NOTE. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND
VOLUNTARILY MADE BY THE LENDER, THE BORROWER AND EACH BORROWER PRINCIPAL, AND
THE LENDER, THE BORROWER AND EACH BORROWER PRINCIPAL ACKNOWLEDGE THAT NO PERSON
ACTING ON BEHALF OF ANOTHER PARTY TO THIS NOTE HAS MADE ANY REPRESENTATIONS OF
FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY
ITS EFFECT. THE LENDER, THE BORROWER AND EACH BORROWER PRINCIPAL FURTHER
ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED (OR HAVE HAD THE OPPORTUNITY TO BE
REPRESENTED) IN THE SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF THEIR OWN FREE WILL, AND THAT THEY HAVE
HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

                                       9

<PAGE>

         IN WITNESS WHEREOF, the Borrower has caused this Note to be duly
executed under seal as of the day and year first above written.

                                          General Partner

                                          [GRAPHIC OMITTED]
                                          ---------------------

                                       10

<PAGE>

                                  BORROWER:
                                  RD COLUMBIA ASSOCIATES L.P.,
                                  a Delaware limited partnership

                                  By:    Acadia Property Holdings, LLC,
                                         a Delaware limited liability company,
                                         its General Partner

                                  By:    Acadia Realty Limited Partnership,
                                         a Delaware limited partnership, its
                                         Sole Member

                                  By:    Acadia Realty Trust, a
                                         Maryland real estate investment
                                         trust, its

                                  By:
                                  Name:  Robert Masters
                                  Title: Senior Vice President

<PAGE>

             Acknowledgment and Agreement of the Borrower Principal
            to Personal Liability for the Exceptions to Non-Recourse

         Each Borrower Principal hereby represents to the Lender that such
Borrower Principal has a direct or an indirect ownership interest in the
Borrower and/or that he or she participates in the management of the Borrower.

         BY SIGNING BELOW, each Borrower Principal understands, accepts and
agrees to the provisions of this Note, including without limitation, Sections 7
and 8 above. No transfer of any Borrower Principal's ownership interest in the
Borrower or in any other entity which directly or indirectly has an ownership
interest in the Borrower shall release the Borrower Principal from liability
hereunder, unless the Lender shall have approved the transfer, the substituted
Borrower Principal and the release of the Borrower Principal from liability
hereunder in writing. Each Borrower Principal waives all rights of subrogation,
reimbursement, indemnification or contribution (whether contractual, statutory
or otherwise, including without limitation, any claim or right of subrogation
under the U.S. Bankruptcy Code or any successor statute) against the Borrower by
reason of any payment by the Borrower Principal pursuant to this Note, including
without limitation, Sections 7 and 8 above, prior to the full and final
satisfaction of this Note and all other obligations of the Borrower under the
Loan Documents. Each Borrower Principal waives any right to assert against the
Lender any defense, setoff, counterclaim, or claims which such Borrower
Principal may have against the Borrower or any other party liable to the Lender
for the obligations of the Borrower under the Loan Documents. Each Borrower
Principal waives all rights to notices of default or nonperformance by the
Borrower under the Loan Documents. Each Borrower Principal further waives all
rights to notices of the existence or the creation of new indebtedness by the
Borrower. Each Borrower Principal waives any right to enforce any remedy which
such Borrower Principal now has or may hereafter have against the Borrower or
any other Borrower Principal, and waives any benefit of, and any right to
participate in, any security now or hereafter held by the Lender.

                               BORROWER PRINCIPAL(S):

                               ACADIA REALTY LIMITED PARTNERSHIP,
                               a Delaware limited partnership

                               By:      Acadia Realty Trust, a Maryland
                                        real estate investment trust,
                                        its General Partner

                                        Robert Masters
                                        Senior Vice President
                                        Title:

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