1

              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549

                        SCHEDULE 13D/A
           Under the Securities Exchange Act of 1934

                       (Amendment No. 3)

                       Alexander's, Inc.
                       (Name of Issuer)

            Common Stock, par value $1.00 per share
                (Title of Class of Securities)

                           014752109
                        (CUSIP Number)

                        Mr. Steven Roth
                     Vornado Realty Trust
                         Park 80 West
                           Plaza II
                Saddle Brook, New Jersey  07662
                       (201) 587-1000             

   (Name, Address and Telephone Number of Person Authorized
            to Receive Notices and Communications)

                           Copy to:

                      Janet T. Geldzahler
                      Sullivan & Cromwell
                       125 Broad Street
                   New York, New York  10004
                        (212) 558-3869

                       March 2, 1995
    (Date of Event which Requires Filing of this Statement)

If a filing person has previously filed a statement on
Schedule 13G to report the acquisition which is the subject of
this Schedule 13D, and is filing this schedule because of Rule
13d-1(b)(3) or (4), check the following box [  ].

Check the following box if a fee is being paid with this
statement [  ].

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- --------------------
CUSIP NO. 014752109
- --------------------
- ------------------------------------------------------------
 1.  NAME OF REPORTING PERSON
     S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
          Vornado Realty Trust 22-1657560
- ------------------------------------------------------------
 2.  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                            (a)  [X]

                                            (b)  [ ]
- ------------------------------------------------------------
 3.  SEC USE ONLY

- ------------------------------------------------------------
 4.  SOURCE OF FUNDS
     WC, BK
- ------------------------------------------------------------
 5.  CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
     REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E)
                                                  [  ]
- ------------------------------------------------------------
 6.  CITIZENSHIP OR PLACE OF ORGANIZATION
     Maryland
- ------------------------------------------------------------
               7.   SOLE VOTING POWER
                    1,466,568 SHARES
 NUMBER OF          
   SHARES      ----------------------------------------
BENEFICIALLY   8.   SHARED VOTING POWER
  OWNED BY          0
    EACH       ----------------------------------------
 REPORTING     9.   SOLE DISPOSITIVE POWER
   PERSON           1,466,568 SHARES
    WITH            
               ----------------------------------------
               10.  SHARED DISPOSITIVE POWER
                    0
- ------------------------------------------------------------
11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
     PERSON
     2,821,136 shares (includes 1,354,568 shares held by 
     Interstate Properties)
- ------------------------------------------------------------
12.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
     CERTAIN SHARES
                                                  [  ]
- ------------------------------------------------------------
13.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
          56.4%
- ------------------------------------------------------------
14.  TYPE OF REPORTING PERSON

          OO (Real estate investment trust)
- ------------------------------------------------------------

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          This Amendment No. 3 amends the Schedule 13D

Statement originally filed by Vornado, Inc. on August 2, 1990 with

respect to the Common Stock, par value $1.00 per share (the "Shares"),

of Alexander's, Inc., a Delaware corporation (the "Company"). 

On May 5, 1993, Vornado, Inc. merged into Vornado Realty

Trust ("Vornado").

Item 3.   Source and Amount of Funds or Other Consideration.  

Vornado acquired 1,353,468 Shares from Citibank, N.A. for 

$54,815,454 in cash with $50 million from a three year revolving credit 

agreement with Union Bank of Switzerland and the remainder from working 

capital of the Company.  The revolving credit agreement provides for interest 

to be paid, at the Company's option, at (i) 150 basis points over LIBOR or 

(ii) 50 basis points over the federal funds rate or the prime rate, whichever

is higher.  The foregoing description is qualified in its entirety by 

reference to Exhibit 5 hereto.

Item 5.   Interest in Securities of the Issuer.

          (a) - (b) Vornado owns 1,466,568 Shares (29.3% of the

5,000,850 Shares reported by the Company as outstanding as of

November 4, 1994 in its Form 10-Q for the three months ended

September 30, 1994).  Vornado has sole voting and dispositive

power with respect to such Shares.  Interstate Properties, the

31% shareholder of Vornado ("Interstate"), owns 1,354,568

Shares, 27.1% of the Shares shown as outstanding in such Form

10-Q.  While Vornado may be deemed to 

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be a group with Interstate and thus to beneficially own the Shares 

held by Interstate (for an aggregate of 2,821,136 Shares or 56.4%), 

Vornado does not have sole or shared voting or dispositive power 

with respect to the Shares held by Interstate.

          In addition, Steven Roth, Chairman of the Board and

Chief Executive Officer and a trustee of Vornado and a General

Partner of Interstate, owns 9,700 Shares, Richard West, a

trustee of Vornado, owns 200 Shares, and Ronald Targen, a

trustee of Vornado, owns 17,800 Shares; each of Messrs. Roth,

West and Targen has sole voting and dispositive power with

respect to the Shares held by him.

          (c)  Other than the acquisition of 1,353,468 Shares from

Citibank, N.A. on March 2, 1995 pursuant to the Stock Purchase Agreement

dated February 6, 1995, there have been no transactions in the Shares

by Interstate or Vornado or any of the executive officers or trustees of 

Vornado or general partners of Interstate in the past sixty days.

Item 7.   Material to be Filed as Exhibits.

          (5)  Revolving Loan Agreement, dated February 27, 1995 among 

               Vornado Realty Trust, as Borrower, Union Bank of Switzerland 

               (New York Branch), as Bank, and Union Bank of Switzerland 

               (New York Branch), as Administrative Agent.

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                           SIGNATURE

          After reasonable inquiry and to the best of my

knowledge and belief, I certify that the information set forth

in this statement is true, complete and correct.

Dated:    March 3, 1995

                              VORNADO REALTY TRUST

                              By:  /s/STEVEN ROTH          
                                   Steven Roth,
                                   Chairman of the Board and
                                   Chief Executive Officer

                                                   Exhibit 5

                          REVOLVING LOAN AGREEMENT

                       dated as of February 27, 1995

                                   among

                           VORNADO REALTY TRUST,
                                as Borrower,

                         UNION BANK OF SWITZERLAND
                             (New York Branch),
                                  as Bank,

                                    and

                         UNION BANK OF SWITZERLAND
                             (New York Branch),
                          as Administrative Agent

                                                                      

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            REVOLVING LOAN AGREEMENT dated as of February 27, 1995 among
VORNADO REALTY TRUST, a real estate investment trust organized and existing
under the laws of the State of Maryland ("Borrower"), UNION BANK OF
SWITZERLAND (New York Branch), as agent for the Banks (in such capacity,
together with its successors in such capacity, "Administrative Agent"), and
UNION BANK OF SWITZERLAND (New York Branch) (in its individual capacity and
not as Administrative Agent, "UBS"; UBS and the lenders who from time to
time become Banks pursuant to Section 3.07 or 12.05, each a "Bank" and
collectively, the "Banks").

             Borrower desires that the Banks extend credit as provided
herein, and the Banks are prepared to extend such credit.  Accordingly,
Borrower, each Bank and Administrative Agent agree as follows:

                       ARTICLE I.  DEFINITIONS; ETC.

            Section  1.01  Definitions.  As used in this Agreement the
following terms have the following meanings (except as otherwise provided,
terms defined in the singular to have a correlative meaning when used in
the plural and vice versa):

            "Administrative Agent" has the meaning specified in the
preamble.

            "Administrative Agent's Office" means Administrative Agent's
address located at 299 Park Avenue, New York, NY 10171, or such other
address in the United States as Administrative Agent may designate by
written notice to Borrower and the Banks.

            "Affiliate" means, with respect to any Person (the "first
Person"), any other Person:  (1) which directly or indirectly controls, or
is controlled by, or is under common control with the first Person; or (2)
ten percent (10%) or more of the beneficial interest in which is directly
or indirectly owned or held by the first Person.  The term "control" means
the possession, directly or indirectly, of the power, alone, to direct or
cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract, or otherwise.

            "Agreement" means this Revolving Loan Agreement.

            "Applicable Lending Office" means, for each Bank and for its
LIBOR Loan or Base Rate Loan, as applicable, the lending office of such
Bank (or of an Affiliate of such Bank) designated as such on its signature
page hereof or in the applicable Assignment and Assumption Agreement, or
such other office of such Bank (or of an Affiliate of such Bank) as such
Bank may from time to time specify to Administrative Agent and Borrower as
the 

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office by which its LIBOR Loan or Base Rate Loan, as applicable, is to be
made and maintained.

            "Applicable Margin" means: (1) with respect to the Base Rate
and Base Rate Loans, one-half percent (.50%), and (2) with respect to the
LIBOR Interest Rate and LIBOR Loans, one and one-half percent (1.50%).

            "Assignee" has the meaning specified in Section 12.05.

            "Assignment and Assumption Agreement" means an Assignment and
Assumption Agreement, substantially in the form of EXHIBIT E hereto,
pursuant to which a Bank assigns and an Assignee assumes rights and
obligations in accordance with Section 12.05.

            "Authorization Letter" means a letter agreement executed by
Borrower in the form of EXHIBIT A hereto.

            "Bank" and "Banks" have the respective meanings specified in
the preamble.

            "Bank Parties" means Administrative Agent and the Banks.

            "Banking Day" means (1) any day on which commercial banks are
not authorized or required to close in New York City and (2) whenever such
day relates to a LIBOR Loan, an Interest Period with respect to a LIBOR
Loan, or notice with respect to any LIBOR Loan, a day on which dealings in
Dollar deposits are also carried out in the London interbank market and
banks are open for business in London.

            "Base Rate" means, for any day, the higher of (1) the Federal
Funds Rate for such day plus one-half percent (.50%), or (2) the Prime Rate
for such day.

            "Base Rate Loan" means all or any portion (as the context
requires) of a Bank's Loan which shall accrue interest at a rate determined
in relation to the Base Rate.

            "Borrower's Accountants" means Deloitte & Touche, or such other
accounting firm(s) selected by Borrower and reasonably acceptable to the
Required Banks. 

            "Borrower" has the meaning specified in the preamble.

            "Capitalization Value" means, at any time, the sum of (a) Cash
Flow less all leasing commissions and management and development fees
earned by Borrower (net of any expenses applicable thereto), for the three
(3) month period then ended annualized, capitalized at a rate of 10% per
annum and (b) such 

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leasing commissions and management and development fees, capitalized at a
rate of 25% per annum.

            "Capital Lease" means any lease which has been or should be
capitalized on the books of the lessee in accordance with GAAP.

            "Cash Flow" means, for any period of time, Combined EBITDA less
income taxes.

            "Closing Date" means the date this Agreement has been executed
by all parties.

            "Code" means the Internal Revenue Code of 1986, as amended from
time to time.

            "Combined EBITDA" means, for any period of time, (1) revenues
less operating costs before Interest Expense, income taxes, gains or losses
on the sale of real estate and/or marketable securities, depreciation and
amortization and extraordinary items for Borrower and its Consolidated
Businesses, plus (2) Borrower's beneficial interest in revenues less
operating costs before Interest Expense, income taxes, gains or losses on
the sale of real estate and/or marketable securities, depreciation and
amortization and extraordinary items (after eliminating appropriate
intercompany amounts) applicable to each of the UJVs, in all cases as
reflected in the VRT Consolidated Financial Statements.

            "Consolidated Businesses" means, collectively each Affiliate of
Borrower who is included in the VRT Consolidated Statements in accordance
with GAAP.

            "Consolidated Outstanding Indebtedness" means, as of any time,
all indebtedness and liability for borrowed money, secured or unsecured, of
Borrower and its Consolidated Businesses, including mortgage and other
notes payable but excluding any indebtedness which is margin indebtedness
on cash and cash equivalent securities, all as reflected in the VRT
Consolidated Financial Statements.

            "Contingent Liabilities" means the sum of (1) those
liabilities, as determined in accordance with GAAP, set forth and
quantified as contingent liabilities in the notes to the VRT Consolidated
Financial Statements and (2) contingent liabilities, other than those
described in the foregoing clause (1), which represent direct payment
guaranties of Borrower; provided, however, that Contingent Liabilities
shall exclude contingent liabilities which represent the "Other Party's
Share" of "Duplicated Obligations" (as such quoted terms are hereinafter
defined).  "Duplicated Obligations" means, collectively, all those payment
guaranties in respect of Debt of UJVs for which Borrower and another party
are jointly and severally liable, 

 4

where the other party is, in the sole judgment of the Required Banks,
capable of satisfying the Other Party's Share of such obligation.  "Other
Party's Share" means such other party's fractional beneficial interest in
the UJV in question.

            "Continue", "Continuation" and "Continued" refer to the
continuation pursuant to Section 2.12 of a LIBOR Loan as a LIBOR Loan from
one Interest Period to the next Interest Period.

            "Convert", "Conversion" and "Converted" refer to a conversion
pursuant to Section 2.12 of a Base Rate Loan into a LIBOR Loan or a LIBOR
Loan into a Base Rate Loan, each of which may be accompanied by the
transfer by a Bank (at its sole discretion) of all or a portion of its Loan
from one Applicable Lending Office to another.

            "Debt" means: (1) indebtedness or liability for borrowed money,
or for the deferred purchase price of property or services (including trade
obligations); (2) obligations as lessee under Capital Leases; (3) current
liabilities in respect of unfunded vested benefits under any Plan; (4)
obligations under letters of credit issued for the account of any Person;
(5) all obligations arising under bankers' or trade acceptance facilities;
(6) all guarantees, endorsements (other than for collection or deposit in
the ordinary course of business), and other contingent obligations to
purchase any of the items included in this definition, to provide funds for
payment, to supply funds to invest in any Person, or otherwise to assure a
creditor against loss; (7) all obligations secured by any Lien on property
owned by the Person whose Debt is being measured, whether or not the
obligations have been assumed; and (8) all obligations under any agreement
providing for contingent participation or other hedging mechanisms with
respect to interest payable on any of the items described above in this
definition.

            "Default" means any event which with the giving of notice or
lapse of time, or both, would become an Event of Default.

            "Default Rate" means a rate per annum equal to:  (1) with
respect to Base Rate Loans, a variable rate three percent (3%) above the
rate of interest then in effect thereon (including the Applicable Margin);
and (2) with respect to LIBOR Loans, a fixed rate three percent (3%) above
the rate(s) of interest in effect thereon (including the Applicable Margin)
at the time of Default until the end of the then current Interest Period
therefor and, thereafter, a variable rate three percent (3%) above the rate
of interest for a Base Rate Loan (including the Applicable Margin).

            "Disposition" means a sale (whether by assignment, transfer or
Capital Lease) of an asset.

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            "Dollars" and the sign "$" mean lawful money of the United
States of America.

            "Elect", "Election" and "Elected" refer to election, if any, by
Borrower pursuant to Section 2.12 to have all or a portion of an advance of
the Loans be outstanding as LIBOR Loans.

            "Environmental Discharge" means any discharge or release of any
Hazardous Materials in violation of any applicable Environmental Law. 

            "Environmental Law" means any applicable Law relating to
pollution or the environment, including Laws relating to noise or to
emissions, discharges, releases or threatened releases of Hazardous
Materials into the work place, the community or the environment, or
otherwise relating to the generation, manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials. 

            "Environmental Notice" means any written complaint, order,
citation, letter, inquiry, notice or other written communication from any
Person (1) affecting or relating to Borrower's compliance with any
Environmental Law in connection with any activity or operations at any time
conducted by  Borrower, (2) relating to the occurrence or presence of or
exposure to or possible or threatened or alleged occurrence or presence of
or exposure to Environmental Discharges or Hazardous Materials at any of
Borrower's locations or facilities, including, without limitation:  (a) the
existence of any contamination or possible or threatened contamination at
any such location or facility and (b) remediation of any Environmental
Discharge or Hazardous Materials at any such location or facility or any
part thereof; and (3) any violation or alleged violation of any relevant
Environmental Law.

            "Equity Value" means, at any time, the sum of (1)
Capitalization Value and (2) without duplication, the cost basis of
properties of Borrower under construction as certified by Borrower, such
certificate to be accompanied by all appropriate documentation supporting
such figure.

            "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, including the rules and regulations
promulgated thereunder.

            "ERISA Affiliate" means any corporation or trade or business
which is a member of the same controlled group of organizations (within the
meaning of Section 414(b) of the Code) as Borrower or is under common
control (within the meaning of Section 414(c) of the Code) with Borrower or
is required to be treated as a single employer with Borrower under Section
414(m) or 414(o) of the Code.

 6

            "Event of Default" has the meaning specified in Section 9.01.

            "Federal Funds Rate" means, for any day, the rate per annum
(expressed on a 360-day basis of calculation) equal to the weighted average
of the rates on overnight federal funds transactions as published by the
Federal Reserve Bank of New York for such day provided that (1) if such day
is not a Banking Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the immediately preceding Banking Day as so
published on the next succeeding Banking Day, and (2) if no such rate is so
published on such next succeeding Banking Day, the Federal Funds Rate for
such day shall be the average of the rates quoted by three Federal Funds
brokers to Administrative Agent on such day on such transactions.

            "Fiscal Year" means each period from January 1 to December 31.

            "Funds From Operations" means Combined EBITDA less the sum of
Interest Expense and income taxes.

            "GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time, applied on a basis
consistent with those used in the preparation of the financial statements
referred to in Section 5.13 (except for changes concurred in by Borrower's
Accountants).

            "Good Faith Contest" means the contest of an item if: (1) the
item is diligently contested in good faith, and, if appropriate, by
proceedings timely instituted; (2) adequate reserves are established with
respect to the contested item; (3) during the period of such contest, the
enforcement of any contested item is effectively stayed; and (4) the
failure to pay or comply with the contested item during the period of the
contest is not likely to result in a Material Adverse Change.

            "Governmental Approvals" means any authorization, consent,
approval, license, permit, certification, or exemption of, registration or
filing with or report or notice to, any Governmental Authority.

            "Governmental Authority" means any nation or government, any
state or other political subdivision thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government.

            "Hazardous Materials" means any pollutant, effluents,
emissions, contaminants, toxic or hazardous wastes or substances, as any of
those terms are defined from time to time in or for the purposes of any
relevant Environmental Law, including asbestos fibers and friable asbestos,
polychlorinated biphenyls, and any petroleum or hydrocarbon-based products
or derivatives.

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            "Initial Advance" means the first advance of proceeds of the
Loans.

            "Interest Expense" means, for any period of time, the
consolidated interest expense (without deduction of consolidated interest
income) of Borrower and its Consolidated Businesses, including, without
limitation or duplication (or, to the extent not so included, with the
addition of), (1) the portion of any rental obligation in respect of any
Capital Lease obligation allocable to interest expense in accordance with
GAAP; (2) the amortization of Debt discounts; (3) any payments or fees
(other than up-front fees) with respect to interest rate swap or similar
agreements; and (4) the interest expense and items listed in clauses (1)
through (3) above applicable to each of the UJVs multiplied by Borrower's
respective beneficial interests in the UJVs, in all cases as reflected in
the applicable VRT Consolidated Financial Statements.

            "Interest Period" means, with respect to any LIBOR Loan, the
period commencing on the date the same is advanced, converted from a Base
Rate Loan or Continued, as the case may be, and ending, as Borrower may
select pursuant to Section 2.05, on the numerically corresponding day in
the first, second, third or sixth calendar month thereafter, provided that
each such Interest Period which commences on the last Banking Day of a
calendar month (or on any day for which there is no numerically
corresponding day in the appropriate subsequent calendar month) shall end
on the last Banking Day of the appropriate calendar month.

            "Law" means any federal, state or local statute, law, rule,
regulation, ordinance, order, code, or rule of common law, now or hereafter
in effect, and in each case as amended, and any judicial or administrative
interpretation thereof by a Governmental Authority or otherwise, including
any judicial or administrative order, consent decree or judgment.

            "LIBOR Base Rate" means, with respect to any Interest Period
therefor, the rate per annum (rounded upwards if necessary to the nearest
1/16 of 1%) quoted at approximately 11:00 a.m., New York time, by the
principal New York branch of UBS two (2) Banking Days prior to the first
day of such Interest Period for the offering to leading banks in the London
interbank market of Dollar deposits in immediately available funds, for a
period, and in an amount, comparable to such Interest Period and principal
amount of the LIBOR Loan in question outstanding during such Interest
Period.

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            "LIBOR Interest Rate" means, for any LIBOR Loan, a rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
determined by Administrative Agent to be equal to the quotient of (1) the
LIBOR Base Rate for such LIBOR Loan for the Interest Period therefor
divided by (2) one minus the LIBOR Reserve Requirement for such LIBOR Loan
for such Interest Period.

            "LIBOR Loan" means all or any portion (as the context requires)
of any Bank's Loan which shall accrue interest at rate(s) determined in
relation to LIBOR Interest Rate(s). 

            "LIBOR Reserve Requirement" means, for any LIBOR Loan, the
average maximum rate at which reserves (including any marginal,
supplemental or emergency reserves) are required to be maintained during
the Interest Period for such LIBOR Loan under Regulation D by member banks
of the Federal Reserve System in New York City with deposits exceeding One
Billion Dollars ($1,000,000,000) against "Eurocurrency liabilities" (as
such term is used in Regulation D).  Without limiting the effect of the
foregoing, the LIBOR Reserve Requirement shall also reflect any other
reserves required to be maintained by such member banks by reason of any
Regulatory Change against (1) any category of liabilities which includes
deposits by reference to which the LIBOR Base Rate is to be determined as
provided in the definition of "LIBOR Base Rate" in this Section 1.01 or (2)
any category of extensions of credit or other assets which include loans
the interest rate on which is determined on the basis of rates referred to
in said definition of "LIBOR Base Rate".

            "Lien" means any mortgage, deed of trust, pledge, security
interest, hypothecation, assignment for collateral purposes, deposit
arrangement, lien (statutory or other), or other security agreement or
charge of any kind or nature whatsoever of any third party (excluding any
right of setoff but including, without limitation, any conditional sale or
other title retention agreement, any financing lease having substan-
tially the same economic effect as any of the foregoing, and the filing of
any financing statement under the Uniform Commercial Code or comparable law
of any jurisdiction to evidence any of the foregoing).

            "Loan" and "Loans" have the respective meanings specified in
Section 2.01.

            "Loan Commitment" means, with respect to each Bank, the
obligation to make a Loan in the principal amount set forth below, as such
amount may be reduced from time to time in accordance with the provisions
of Section 2.10 and Section 6.10:

 9

                                              Loan
                  Bank                      Commitment
                                         
                  UBS                       $75,000,000

                  Total                     $75,000,000

            "Loan Documents" means this Agreement, the Notes and the
Solvency Certificates.

            "Material Adverse Change" means either (1) a material adverse
change in the status of the business, results of operations, financial
condition or property of  Borrower or (2) any event or occurrence of
whatever nature which is likely to have a material adverse effect on the
ability of Borrower to perform its obligations under the Loan Documents.

            "Material Affiliates" means the Affiliates listed on Exhibit C
hereto.

            "Maturity Date" means March 1, 1998.

            "Multiemployer Plan" means a Plan defined as such in Section
3(37) of ERISA to which contributions have been made by Borrower or any
ERISA Affiliate and which is covered by Title IV of ERISA.

            "Note" and "Notes" have the respective meanings specified in
Section 2.08.

            "Obligations" means each and every obligation, covenant and
agreement of Borrower, now or hereafter existing, contained in this
Agreement, and any of the other Loan Documents, whether for principal,
reimbursement obligations, interest, fees, expenses, indemnities or
otherwise, and any amendments or supplements thereto, extensions or
renewals thereof or replacements therefor, including but not limited to all
indebtedness, obligations and liabilities of Borrower to Administrative
Agent and any Bank now existing or hereafter incurred under or arising out
of or in connection with the Notes, this Agreement, the other Loan
Documents, and any documents or instruments executed in connection
therewith; in each case whether direct or indirect, joint or several,
absolute or contingent, liquidated or unliquidated, now or hereafter
existing, renewed or restructured, whether or not from time to time
decreased or extinguished and later increased, created or incurred, and
including all indebtedness of Borrower, under any instrument now or
hereafter evidencing or securing any of the foregoing.

            "Parent" means, with respect to any Bank, any Person
controlling such Bank.

 10

            "PBGC" means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.

            "Person" means an individual, partnership,
corporation, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of
whatever nature.

            "Plan" means any employee benefit or other plan established or
maintained, or to which contributions have been made, by Borrower or any
ERISA Affiliate of Borrower and which is covered by Title IV of ERISA or to
which Section 412 of the Code applies.

            "presence", when used in connection with any Environmental
Discharge or Hazardous Materials, means and includes presence, generation,
manufacture, installation, treatment, use, storage, handling, repair,
encapsulation, disposal, transportation, spill, discharge and release.

            "Prime Rate" means that rate of interest from time to time
announced by UBS at its Principal Office as its prime commercial lending
rate.

            "Principal Office" means the principal office of UBS in the
United States, presently located at 299 Park Avenue, New York, New York
10171.

            "Pro Rata Share" means, for purposes of this Agreement and with
respect to each Bank, a fraction, the numerator of which is the amount of
such Bank's Loan Commitment and the denominator of which is the Total Loan
Commitment. 

            "Prohibited Transaction" means any transaction set forth in
Section 406 of ERISA or Section 4975 of the Code.

            "Regulation D" means Regulation D of the Board of Governors of
the Federal Reserve System, as the same may be amended or supplemented from
time to time, or any similar Law from time to time in effect.

            "Regulation U" means Regulation U of the Board of Governors of
the Federal Reserve System, as the same may be amended or supplemented from
time to time.

            "Regulatory Change" means, with respect to any Bank, any change
after the date of this Agreement in United States federal, state, municipal
or foreign laws or regulations (including Regulation D) or the adoption or
making after such date of any interpretations, directives or requests
applying to a class of banks including such Bank of or under any United
States, federal, state, municipal or foreign laws or regulations (whether

 11

or not having the force of law) by any court or governmental or monetary
authority charged with the interpretation or administration thereof.

            "Reportable Event" means any of the events set forth in Section
4043(b) of ERISA, other than those events as to which the thirty (30) day
notice period is waived under subsections .13, .14, .16, .18, .19 or .20 of
PBGC Reg. sec.2615.

            "Required Banks" means at any time the Banks holding at  least
sixty-six and sixty six hundredths percent (66.66%) of the then aggregate
unpaid principal amount of the Loans.

            "SEC Reports" means the reports required to be delivered to the
Securities and Exchange Commission pursuant to the Securities Exchange Act
of 1934, as amended.

            "Secured Indebtedness" means that portion of Total Outstanding
Indebtedness that is secured.

            "Shopping Center EBITDA" means, for any period of time,
revenues less operating costs (including assumed management fees of 2% of
net rents) before Interest Expense, income taxes, gains or losses on the
sale of real estate and/or marketable securities, depreciation and
amortization and extraordinary items, in each case for the twelve shopping
centers identified on EXHIBIT F.

            "Solvency Certificate" means a certificate in substantially the
form of EXHIBIT D hereto, to be delivered by Borrower pursuant to the terms
of this Agreement.

            "Solvent" means, when used with respect to any Person, that (1)
the fair value of the property of such Person, on a going concern basis, is
greater than the total amount of liabilities (including, without
limitation, contingent liabilities) of such Person; (2) the present fair
saleable value of the assets of such Person, on a going concern basis, is
not less than the amount that will be required to pay the probable
liabilities of such Person on its debts as they become absolute and
matured; (3) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person's ability to pay as
such debts and liabilities mature; (4) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person's property would constitute unreasonably
small capital after giving due consideration to the prevailing practice in
the industry in which such Person is engaged; and (5) such Person has
sufficient resources, provided that such resources are prudently utilized,
to satisfy all of such Person's obligations.  Contingent liabilities will
be computed at the amount that, in light of all the facts and circumstances
existing at such time, 

 12

represents the amount that can reasonably be expected to become an actual
or matured liability.

            "Supplemental Fee Letter" means that certain letter, dated the
date hereof, between UBS and Borrower.

            "Total Loan Commitment" means an amount equal to the aggregate
amount of all Loan Commitments.

            "Total Market Capitalization" means, at any time, the sum of
(1) Equity Value and (2) Total Outstanding Indebtedness.

            "Total Outstanding Indebtedness" means the sum, without
duplication, of (1) Consolidated Outstanding Indebtedness, (2) VRT's Share
of UJV Combined Outstanding Indebtedness and (3) Contingent Liabilities.

            "UJV Combined Outstanding Indebtedness" means, as of any time,
all indebtedness and liability for borrowed money, secured or unsecured, of
the UJV's, on a combined basis, including mortgage and other notes payable
but excluding any indebtedness which is margin indebtedness on cash and
cash equivalent securities, all as reflected in the balance sheets of each
of the UJVs, prepared in accordance with GAAP.

            "UJVs" means the unconsolidated joint ventures in which
Borrower owns a beneficial interest and which are accounted for under the
equity method in the VRT Consolidated Financial Statements other than
Alexander's, Inc.

            "Unencumbered Combined EBITDA" means that portion of Combined
EBITDA attributable to Unencumbered Wholly-Owned Assets.

            "Unencumbered Current Liability" of any Plan means the amount,
if any, by which the actuarial present value of accumulated plan benefits
as of the close of its most recent plan year, based upon the actuarial
assumptions used by the Plan's actuary in the most recent annual valuation
of the Plan, exceeds the fair market value of the assets allocable thereto,
determined in accordance with Section 412 of the Code.

            "Unencumbered Wholly-Owned Assets" means assets, reflected on
the VRT Consolidated Financial Statements, wholly owned, directly or
indirectly, by Borrower and not subject to any Lien to secure all or any
portion of Secured Indebtedness.

            "Unsecured Debt Yield" means, for any calendar quarter, the
ratio, expressed as a percentage, of (1) Unencumbered Combined EBITDA for
the three (3)-month period ending with such calendar quarter annualized to
(2) Unsecured Indebtedness as of the end of such calendar quarter.

 13

            "Unsecured Indebtedness" means that portion of Total
Outstanding Indebtedness that is unsecured.

            "VRT Consolidated Financial Statements" means the consolidated
balance sheet and related consolidated statement of operations, accumulated
deficiency in assets and cash flows, and footnotes thereto, of Borrower,
prepared in accordance with GAAP.

            "VRT Principals" means the trustees, officers and directors of
Borrower at any applicable time.

            "VRT's Share of UJV Combined Outstanding Indebtedness" means
the sum of the indebtedness of each of the UJVs contributing to UJV
Combined Outstanding Indebtedness multiplied by Borrower's respective
beneficial fractional interests in each such UJV.

            Section  1.02  Accounting Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with GAAP, and
all financial data required to be delivered hereunder shall be prepared in
accordance with GAAP.

            Section  1.03  Computation of Time Periods.  Except as
otherwise provided herein, in this Agreement, in the computation of periods
of time from a specified date to a later specified date, the word "from"
means "from and including" and words "to" and "until" each means "to but
excluding".

            Section  1.04  Rules of Construction.  When used in this
Agreement:  (1) "or" is not exclusive; (2) a reference to a law includes
any amendment or modification to such law; (3) a reference to a Person
includes its permitted successors and permitted assigns; (4) except as
provided otherwise, all references to the singular shall include the plural
and vice versa; (5) except as provided in this Agreement, a reference to an
agreement, instrument or document shall include such agreement, instrument
or document as the same may be amended, modified or supplemented from time
to time in accordance with its terms and as permitted by the Loan
Documents; (6) all references to Articles or Sections shall be to Articles
and Sections of this Agreement unless otherwise indicated; and (7) all
Exhibits to this Agreement shall be incorporated into this Agreement.

                           ARTICLE II.  THE LOANS

            Section  2.01  The Loans.  Subject to the terms and conditions
of this Agreement, each of the Banks severally agrees to make a loan to
Borrower (each such loan by a Bank, a "Loan"; such loans, collectively, the
"Loans") pursuant to which the Bank shall from time to time advance and re-
advance to Borrower an amount equal to the excess of such Bank's Loan
Commitment over all previous advances made by such Bank which remain
unpaid.  

 14

Within the limits set forth herein, Borrower may borrow from time to time
under this Section 2.01 and prepay from time to time pursuant to Section
2.09 (subject, however, to the restrictions on prepayment set forth in said
Section), and thereafter re-borrow pursuant to this Section 2.01.  The
Loans may be outstanding as: (1) Base Rate Loans; (2) LIBOR Loans; or (3) a
combination of the foregoing, as Borrower shall elect and notify
Administrative Agent in accordance with Section 2.14.  The LIBOR Loan and
Base Rate Loan of each Bank shall be maintained at such Bank's Applicable
Lending Office for its LIBOR Loan and Base Rate Loan, respectively.

            The obligations of the Banks under this Agreement are several,
and no Bank shall be responsible for the failure of any other Bank to make
any advance of a Loan to be made by such other Bank.  However, the failure
of any Bank to make any advance of the Loan to be made by it hereunder on
the date specified therefor shall not relieve any other Bank of its
obligation to make any advance of its Loan specified hereby to be made on
such date.

            Section  2.02  Purpose.  Borrower shall use the proceeds of the
Loans for general capital and working capital requirements of Borrower and
its Consolidated Businesses and UJVs.

            In no event shall proceeds of the Loans be used in a manner
that would violate Regulation U.

            Each advance shall be subject, in addition to the limitations
and conditions applicable to advances of the Loans generally, to
Administrative Agent's receipt, on or immediately prior to the date the
request for such advance is made, of (1) a certificate, of the sort
required by paragraph (3)(b) of Section 6.09, containing covenant
compliance calculations that include the pro-forma adjustments described
below, which calculations shall demonstrate Borrower's compliance, on a
pro-forma basis, as of the end of the most recently ended calendar quarter
for which financial results are required hereunder to have been reported by
Borrower, with all covenants enumerated in said paragraph (3)(b) and (2) a
certificate by the same officer setting forth the use of the advance, the
income projected to be generated from such advance for purposes of
determining Combined EBITDA and the type of income so generated.

            In connection with each advance of Loan proceeds, the following
pro-forma adjustments shall be made to the covenant compliance calculations
required as of the end of the most recently ended calendar quarter for
which financial results are required hereunder to have been reported by
Borrower:

              (i)  Total Outstanding Indebtedness and Unsecured
      Indebtedness shall be adjusted by adding thereto, 

 15

respectively, all indebtedness and unsecured indebtedness that is incurred
by Borrower in connection with the advance;

             (ii)  Combined EBITDA, for any period, shall be adjusted by
      adding the income to be included as provided in Borrower's
      certificate; and

            (iii)  Interest Expense for any period, shall be adjusted by
      adding thereto interest expense to be incurred by Borrower in
      connection with the advance.

            Section  2.03  Advances, Generally.  The Initial Advance shall
be in the minimum amount of Three Million Dollars ($3,000,000) and in
integral multiples of One Hundred Thousand Dollars ($100,000) above such
amount and shall be made upon satisfaction of the conditions set forth in
Section 4.01.  Subsequent advances shall be made no more frequently than
weekly thereafter, upon satisfaction of the conditions set forth in Section
4.02.  The amount of each advance subsequent to the Initial Advance shall
be in the minimum amount of Three Million Dollars ($3,000,000) (unless less
than Three Million Dollars ($3,000,000) is available for disbursement
pursuant to the terms hereof at the time of any subsequent advance, in
which case the amount of such subsequent advance shall be equal to such
remaining availability) and in integral multiples of One Hundred Thousand
Dollars ($100,000) above such amount.

            Section  2.04  Procedures for Advances.  Borrower shall submit
to Administrative Agent a request for each advance hereunder, stating the
amount requested and the expected purpose for which such advance is to be
used, no later than 10:00 a.m. (New York time) on the date, in the case of
advances of Base Rate Loans, which is one (1) Banking Day, and, in the case
of advances of LIBOR Loans, which is three (3) Banking Days, prior to the
date the advance is to be made.  Administrative Agent, upon its receipt and
approval of the request for advance, will so notify the Banks.  Not later
than 10:00 a.m. (New York time) on the date of each advance, each Bank
shall, through its Applicable Lending Office and subject to the conditions
of this Agreement, make the amount to be advanced by it on such day
available to Administrative Agent, at Administrative Agent's Office and in
immediately available funds for the account of Borrower.  The amount so
received by Administrative Agent shall, subject to the conditions of this
Agreement, be made available to Borrower, in immediately available funds,
by Administrative Agent's crediting account number 292079 of Borrower
maintained with Administrative Agent at Administrative Agent's Office.

            Section  2.05  Interest Periods; Renewals.  In the case of the
LIBOR Loans, Borrower shall select an Interest Period of any duration in
accordance with the definition of Interest Period in Section 1.01, subject
to the following limitations:  (1) no Interest Period may extend beyond the
Maturity Date; (2) if an 

 16

Interest Period would end on a day which is not a Banking Day, such
Interest Period shall be extended to the next Banking Day, unless such
Banking Day would fall in the next calendar month, in which event such
Interest Period shall end on the immediately preceding Banking Day; and (3)
only eight (8) discrete segments of a Bank's Loan bearing interest at a
LIBOR Interest Rate, for a designated Interest Period, pursuant to a
particular Election, Conversion or Continuation, may be outstanding at any
one time (each such segment of each Bank's Loan corresponding to a
proportionate segment of each of the other Banks' Loans). 

            Upon notice to Administrative Agent as provided in
Section 2.14, Borrower may Continue any LIBOR Loan on the last day of the
Interest Period of the same or different duration in accordance with the
limitations provided above.

            Section  2.06  Interest.  Borrower shall pay interest to
Administrative Agent for the account of the applicable Bank on the
outstanding and unpaid principal amount of the Loans, at a rate per annum
as follows:  (1) for Base Rate Loans at a rate equal to the Base Rate plus
the Applicable Margin; and (2) for LIBOR Loans at a rate equal to the
applicable LIBOR Interest Rate plus the Applicable Margin.  Any principal
amount not paid when due (when scheduled, at acceleration or otherwise)
shall bear interest thereafter, payable on demand, at the Default Rate.

            The interest rate on Base Rate Loans shall change when the Base
Rate changes.  Interest on Base Rate Loans and LIBOR Loans shall not exceed
the maximum amount permitted under applicable law.  Interest shall be
calculated for the actual number of days elapsed on the basis of, in the
case of both Base Rate Loans and LIBOR Loans, three hundred sixty (360)
days.

            Accrued interest shall be due and payable in arrears upon and
with respect to any payment or prepayment of principal and on the first
Banking Day of each calendar month; provided, however, that interest
accruing at the Default Rate shall be due and payable on demand.

            Section  2.07  Fees.  (a)  Borrower agrees to pay to
Administrative Agent, for its account, the fees provided for in the
Supplemental Fee Letter.

            (b)  Borrower shall, during the term of the Loans, pay to
Administrative Agent for the account of each Bank a commitment fee computed
on the daily unused Loan Commitment of such Bank, at a rate per annum equal
to one-quarter percent (.25%), calculated on the basis of a year of three
hundred sixty (360) days for the actual number of days elapsed.  The
accrued commitment fee shall be due and payable in arrears on the tenth
(10th) day of June, September, December and March of each year, commencing
on the first such date after the Closing Date, and upon the Maturity Date
or earlier termination of the Loan Commitments. 

 17

            (c)  Borrower shall pay to Administrative Agent, for the
account of Administrative Agent, on the Closing Date and on each
anniversary of the Closing Date thereafter until (but excluding) the
Maturity Date or earlier termination of the Loan Commitments, an annual
administration fee in the amount of $50,000.

            Section  2.08  Notes.  The Loan made by each Bank under this
Agreement shall be evidenced by, and repaid with interest in accordance
with, a single promissory note of Borrower in the form of EXHIBIT B hereto
duly completed and executed by Borrower, representing the amount of such
Bank's Loan Commitment, or if less, the aggregate unpaid principal amount
of all Loans by such Bank to Borrower, payable to such Bank for the account
of its Applicable Lending Office (each, a "Note" and collectively, the
"Notes").  Each Note shall mature, and all outstanding principal and other
sums thereunder shall be paid in full, on the Maturity Date.

            Each Bank is hereby authorized by Borrower to endorse on the
schedule attached to the Note held by it, the amount of each advance and
each payment of principal received by such Bank for the account of its
Applicable Lending Office(s) on account of its Loan, which endorsement
shall, in the absence of manifest error, be conclusive as to the
outstanding balance of the Loan made by such Bank; provided, however, that
the failure to make such notation with respect to the Loan or each advance
or payment shall not limit or otherwise affect the obligations of Borrower
under this Agreement or the Note held by such Bank.  Each Bank agrees that
prior to any assignment of the Note it will endorse the schedule attached
to its Note.

            Section  2.09  Prepayments.  Without prepayment premium or
penalty but subject to Section 3.05, Borrower may, upon at least one (1)
Banking Day's notice to Administrative Agent in the case of the Base Rate
Loans, and at least three (3) Banking Days' notice to Administrative Agent
in the case of LIBOR Loans, prepay the Loans in whole or, with respect to
Base Rate Loans only, in part, provided that (1) any partial prepayment
under this Section shall be in integral multiples of One Million Dollars
($1,000,000); and (2) each prepayment under this Section shall include all
interest accrued on the amount of principal prepaid to (but excluding) the
date of prepayment.

            Section  2.10  Changes of Commitments.  (a)  At any time,
Borrower shall have the right, without premium or penalty, to terminate any
unused Loan Commitments existing as of the date of such termination, in
whole or in part, from time to time, provided that: (1) Borrower shall give
notice of each such termination to Administrative Agent no later then 10:00
a.m. (New York time) on the date which is three (3) Banking Days prior to
the effectiveness of such termination; (2) the Loan Commitments of each of
the Banks must be terminated ratably and 

 18

simultaneously with those of the other Banks; and (3) each partial
termination of the Loan Commitments as a whole (and corresponding reduction
of the Total Loan Commitment) shall be in an integral multiple of One
Million Dollars ($1,000,000).

            (b)  The Loan Commitments, to the extent terminated, may not be
reinstated. 

            Section  2.11  Method of Payment.  Borrower shall make each
payment under this Agreement and under the Notes not later than 11:00 A.M.
(New York time) on the date when due in Dollars to Administrative Agent at
Administrative Agent's Office in immediately available funds. 
Administrative Agent will thereafter, on the day of its receipt of each
such payment, cause to be distributed to each Bank (1) such Bank's ratable
share (based upon the respective outstanding principal amounts and interest
due under the Notes of the Banks) of the payments of principal and interest
in like funds for the account of such Bank's Applicable Lending Office; and
(2) fees payable to such Bank in accordance with the terms of this
Agreement.  Borrower hereby authorizes Administrative Agent and the Banks,
if and to the extent payment by Borrower is not made when due under this
Agreement or under the Notes, to charge from time to time against any
account Borrower maintains with Administrative Agent or any Bank any amount
so due to Administrative Agent and/or the Banks.

            Except to the extent provided in this Agreement, whenever any
payment to be made under this Agreement or under the Notes is due on any
day other than a Banking Day, such payment shall be made on the next
succeeding Banking Day, and such extension of time shall in such case be
included in the computation of the payment of interest and other fees, as
the case may be.

            Section  2.12  Elections, Conversions or Continuation of Loans. 
Subject to the provisions of Article III and Sections 2.05 and 2.13,
Borrower shall have the right to Elect to have all or a portion of any
advance of the Loans be LIBOR Loans, to Convert Base Rate Loans into LIBOR
Loans, to Convert LIBOR Loans into Base Rate Loans, or to Continue LIBOR
Loans as LIBOR Loans, at any time or from time to time, provided that: (1)
Borrower shall give Administrative Agent notice of each such Election,
Conversion or Continuation as provided in Section 2.14; and (2) a LIBOR
Loan may be Continued only on the last day of the applicable Interest
Period for such LIBOR Loan.  Except as otherwise provided in this
Agreement, each Election, Continuation and Conversion shall be applicable
to each Bank's Loan in accordance with its Pro Rata Share.

            Section  2.13  Minimum Amounts. With respect to the Loans as a
whole, each Election and each Conversion shall be in an amount at least
equal to Three Million Dollars ($3,000,000) 

 19

and in integral multiples of One Hundred Thousand Dollars ($100,000).

            Section  2.14  Certain Notices Regarding Elections, Conversions
and Continuations of Loans.  Notices by Borrower to Administrative Agent of
Elections, Conversions and Continuations of LIBOR Loans shall be
irrevocable and shall be effective only if received by Administrative Agent
not later than 10:00 a.m. (New York time) on the number of Banking Days
prior to the date of the relevant Election, Conversion or Continuation
specified below:

                                    Number of
      Notice                              Banking Days Prior
                                       
Conversions into Base Rate
Loans                                     one (1)

Elections of, Conversions into 
or Continuations as, LIBOR Loans                      three (3)

Promptly following its receipt of any such notice, Administrative Agent
shall so advise the Banks.  Each such notice of Election shall specify the
portion of the amount of the advance that is to be LIBOR Loans (subject to
Section 2.13) and the duration of the Interest Period applicable thereto
(subject to Section 2.05); each such notice of Conversion shall specify the
LIBOR Loans or Base Rate Loans to be Converted; and each such notice of
Conversion or Continuation shall specify the date of Conversion or
Continuation (which shall be a Banking Day), the amount thereof (subject to
Section 2.13) and the duration of the Interest Period applicable thereto
(subject to Section 2.05).  In the event that Borrower fails to Elect to
have any portion of an advance be LIBOR Loans, the entire amount of such
advance shall constitute Base Rate Loans.  In the event that Borrower fails
to Continue LIBOR Loans within the time period and as otherwise provided in
this Section, such LIBOR Loans will be automatically Converted into Base
Rate Loans on the last day of the then current applicable Interest Period
for such LIBOR Loans.

 20

                      ARTICLE III.  YIELD PROTECTION; 
                              ILLEGALITY; ETC.

            Section  3.01  Additional Costs.  Borrower shall pay directly
to each Bank from time to time on demand such amounts as such Bank may
reasonably determine to be necessary to compensate it for any increased
costs which such Bank determines are attributable to its making or
maintaining a LIBOR Loan, or its obligation to make or maintain a LIBOR
Loan, or its obligation to Convert a Base Rate Loan to a LIBOR Loan
hereunder, or any reduction in any amount receivable by such Bank hereunder
in respect of its LIBOR Loan or such obligations (such increases in costs
and reductions in amounts receivable being herein called "Additional
Costs"), in each case resulting from any Regulatory Change which:

            (1)  changes the basis of taxation of any amounts payable to
      such Bank under this Agreement or the Notes in respect of any such
      LIBOR Loan (other than (i) changes in the rate of general corporate,
      franchise, branch profit, net income or other income tax imposed on
      such Bank or its Applicable Lending Office or (ii) a tax described in
      Section 10.13); or

            (2)  (other than to the extent the LIBOR Reserve Requirement is
      taken into account in determining the LIBOR Rate at the commencement
      of the applicable Interest Period) imposes or modifies any reserve,
      special deposit, deposit insurance or assessment, minimum capital,
      capital ratio or similar requirements relating to any extensions of
      credit or other assets of, or any deposits with or other liabilities
      of, such Bank (including any LIBOR Loan or any deposits referred to
      in the definition of "LIBOR Interest Rate" in Section 1.01), or any
      commitment of such Bank (including such Bank's Loan Commitment
      hereunder); or

            (3)  imposes any other condition (unrelated to the basis of
      taxation referred to in paragraph (1) above) affecting this Agreement
      or the Notes (or any of such extensions of credit or liabilities).

            Without limiting the effect of the provisions of the first
paragraph of this Section, in the event that, by reason of any Regulatory
Change, any Bank either (1) incurs Additional Costs based on or measured by
the excess above a specified level of the amount of a category of deposits
of other liabilities of such Bank which includes deposits by reference to
which the LIBOR Interest Rate is determined as provided in this Agreement
or a category of extensions of credit or other assets of such Bank which
includes loans based on the LIBOR Interest Rate or (2) becomes subject to
restrictions on the amount of such a category of liabilities or assets
which it may hold, then, if such Bank so elects by notice to Borrower (with
a copy to Administrative 

 21

Agent), the obligation of such Bank to permit Elections of, to Continue, or
to Convert Base Rate Loans into, LIBOR Loans shall be suspended (in which
case the provisions of Section 3.04 shall be applicable) until such
Regulatory Change ceases to be in effect.

            Determinations and allocations by a Bank for purposes of this
Section of the effect of any Regulatory Change pursuant to the first or
second paragraph of this Section, on its costs or rate of return of making
or maintaining its Loan or portions thereof or on amounts receivable by it
in respect of its Loan or portions thereof, and the amounts required to
compensate such Bank under this Section, shall be included in a calculation
of such amounts given to Borrower and shall be conclusive absent manifest
error.

            Section  3.02  Limitation on Types of Loans.  Anything herein
to the contrary notwithstanding, if, on or prior to the determination of
the LIBOR Interest Rate for any Interest Period:

            (1)  Administrative Agent reasonably determines (which
      determination shall be conclusive) that quotations of interest rates
      for the relevant deposits referred to in the definition of "LIBOR
      Interest Rate" in Section 1.01 are not being provided in the relevant
      amounts or for the relevant maturities for purposes of determining
      rates of interest for the LIBOR Loans as provided in this Agreement;
      or

            (2)  a Bank reasonably determines (which determination shall be
      conclusive) and promptly notifies Administrative Agent that the
      relevant rates of interest referred to in the definition of "LIBOR
      Interest Rate" in Section 1.01 upon the basis of which the rate of
      interest for LIBOR Loans for such Interest Period is to be determined
      do not adequately cover the cost to such Bank of making or
      maintaining such LIBOR Loan for such Interest Period;

then Administrative Agent shall give Borrower prompt notice thereof, and so
long as such condition remains in effect, the Banks (or, in the case of the
circumstances described in clause (2) above, the affected Bank) shall be
under no obligation to permit Elections of LIBOR Loans, to Convert Base
Rate Loans into LIBOR Loans or to Continue LIBOR Loans and Borrower shall,
on the last day(s) of the then current Interest Period(s) for the affected
outstanding LIBOR Loans, either prepay the affected LIBOR Loans or Convert
the affected LIBOR Loans into Base Rate Loans in accordance with Section
2.12.

            Section  3.03  Illegality.  Notwithstanding any other provision
of this Agreement, in the event that it becomes unlawful for any Bank or
its Applicable Lending Office to honor its obligation to make or maintain a
LIBOR Loan hereunder, to allow Elections of a LIBOR Loan or to Convert a
Base Rate Loan 

 22

into a LIBOR Loan, then such Bank shall promptly notify Administrative
Agent and Borrower thereof and such Bank's obligation to make or maintain,
to permit Elections of, to Continue, or to Convert its Base Rate Loan into,
a LIBOR Loan shall be suspended (in which case the provisions of Section
3.04 shall be applicable) until such time as such Bank may again make and
maintain a LIBOR Loan.

            Section  3.04  Treatment of Affected Loans.  If the obligations
of any Bank to permit an Election of a LIBOR Loan, to Continue its LIBOR
Loan, or to Convert its Base Rate Loan into a LIBOR Loan, are suspended
pursuant to Sections 3.01 or 3.03 (each LIBOR Loan so affected being herein
called an "Affected Loan"), such Bank's Affected Loan shall be
automatically Converted into a Base Rate Loan on the last day of the then
current Interest Period for the Affected Loan (or, in the case of a
Conversion required by Sections 3.01 or 3.03, on such earlier date as such
Bank may specify to Borrower).

            To the extent that such Bank's Affected Loan has been so
Converted, all payments and prepayments of principal which would otherwise
be applied to such Bank's Affected Loan shall be applied instead to its
Base Rate Loan and such Bank shall have no obligation to Convert its Base
Rate Loan into a LIBOR Loan.

            Section  3.05  Certain Compensation.  Other than in connection
with a Conversion of an Affected Loan, Borrower shall pay to Administrative
Agent for the account of the applicable Bank, upon the request of such Bank
through Administrative Agent which request includes a calculation of the
amount(s) due, such amount or amounts as shall be sufficient (in the
reasonable opinion of such Bank) to compensate it for any loss, cost or
expense which such Bank reasonably determines is attributable to:

            (1)  any payment, prepayment, Conversion or Continuation of a
      LIBOR Loan made by such Bank on a date other than the last day of an
      applicable Interest Period for such LIBOR Loan whether by reason of
      acceleration or otherwise; or 

            (2)  any failure by Borrower for any reason to Convert or
      Continue a LIBOR Loan to be Converted or Continued by such Bank on
      the date specified therefor in the relevant notice under Section
      2.14; or

            (3)  any failure by Borrower to borrow (or to qualify for a
      borrowing of) a LIBOR Loan which would otherwise be made hereunder on
      the date specified in the relevant Election notice under Section 2.14
      given or submitted by Borrower.

            Without limiting the foregoing, such compensation shall include
an amount equal to the present value (using as the 

 23

discount rate an interest rate equal to the rate determined under (2)
below) of the excess, if any, of (1) the amount of interest (less the
Applicable Margin) which otherwise would have accrued on the principal
amount so paid, prepaid, Converted or Continued (or not Converted,
Continued or borrowed) for the period from the date of such payment,
prepayment, Conversion or Continuation (or failure to Convert, Continue or
borrow) to the last day of the then current applicable Interest Period for
the LIBOR Loan (or, in the case of a failure to Convert, Continue or
borrow, to the last day of the applicable Interest Period for the LIBOR
Loan which would have commenced on the date specified therefor in the
relevant notice) at the applicable rate of interest for the LIBOR Loan
provided for herein, over (2) the amount of interest (as reasonably
determined by such Bank) based upon the interest rate which such Bank would
have bid in the London interbank market for Dollar deposits, for amounts
comparable to such principal amount and maturities comparable to such
period.  A determination of any Bank as to the amounts payable pursuant to
this Section shall be conclusive absent manifest error.

            Section  3.06  Capital Adequacy.  If any Bank shall have
determined that, after the date hereof, the adoption of any applicable law,
rule or regulation regarding capital adequacy, or any change therein, or
any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or any request or directive
regarding capital adequacy (whether or not having the force of law) of any
such Governmental Authority, central bank or comparable agency, has or
would have the effect of reducing the rate of return on capital of such
Bank (or its Parent) as a consequence of such Bank's obligations hereunder
to a level below that which such Bank (or its Parent) could have achieved
but for such adoption, change, request or directive (taking into
consideration its policies with respect to capital adequacy) by an amount
deemed by such Bank to be material, then from time to time, within fifteen
(15) days after demand by such Bank (with a copy to Administrative Agent),
Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank (or its Parent) for such reduction.  A certificate of
any Bank claiming compensation under this Section, setting forth in
reasonable detail the basis therefor, shall be conclusive absent manifest
error.

            Section  3.07  Substitution of Banks.  If any Bank (an
"Affected Bank") (i) makes demand upon Borrower for (or if Borrower is
otherwise required to pay) Additional Costs pursuant to Section 3.01 or
(ii) is unable to make or maintain its Pro Rata Share of the Loan at the
LIBOR Based Rate as a result of a condition described in Section 3.03 or
clause (2) of Section 3.02, Borrower may, within ninety (90) days of
receipt of such demand or notice (or the occurrence of such other event
causing Borrower to be required to pay Additional Costs or causing said 

 24

Section 3.03 or clause (2) of Section 3.02 to be applicable), as the case
may be, give written notice (a "Replacement Notice") to Administrative
Agent and to each Bank of Borrower's intention either (x) to prepay in full
the Affected Bank's Note and to terminate the Affected Bank's entire Loan
Commitment or (y) to replace the Affected Bank with another financial
institution (the "Replacement Bank") designated in such Replacement Notice.

            In the event Borrower opts to give the notice provided for in
clause (x) above, and if the Affected Bank shall not agree within thirty
(30) days of its receipt thereof to waive the payment of the Additional
Costs in question or the effect of the circumstances described in Section
3.03 or clause (2) of Section 3.02, then, so long as no Default or Event of
Default shall exist, Borrower may (notwithstanding the provisions of clause
(2) of Section 2.10(a)) terminate the Affected Bank's entire Loan
Commitment, provided that in connection therewith it pays to the Affected
Bank all outstanding principal and accrued and unpaid interest under the
Affected Bank's Note, together with all other amounts, if any, due from
Borrower to the Affected Bank, including all amounts properly demanded and
unreimbursed under Section 3.01.

            In the event Borrower opts to give the notice provided for in
clause (y) above, and if (i) Administrative Agent shall, within thirty (30)
days of its receipt of the Replacement Notice, notify Borrower and each
Bank in writing that the Replacement Bank is reasonably satisfactory to
Administrative Agent and (ii) the Affected Bank shall not, prior to the end
of such thirty (30)-day period, agree to waive the payment of the
Additional Costs in question or the effect of the circumstances described
in Section 3.03 or clause (2) of Section 3.02, then the Affected Bank
shall, so long as no Default or Event of Default shall exist, assign its
Note and all of its rights and obligations under this Agreement to the
Replacement Bank, and the Replacement Bank shall assume all of the Affected
Bank's rights and obligations, pursuant to an agreement, substantially in
the form of an Assignment and Assumption Agreement, executed by the
Affected Bank and the Replacement Bank.  In connection with such assignment
and assumption, the Replacement Bank shall pay to the Affected Bank an
amount equal to the outstanding principal amount under the Affected Bank's
Note plus all interest accrued thereon, plus all other amounts, if any
(other than the Additional Costs in question), then due and payable to the
Affected Bank; provided, however, that prior to or simultaneously with any
such assignment and assumption, Borrower shall have paid to such Affected
Bank all amounts properly demanded and unreimbursed under Section 3.01. 
Upon the effective date of such assignment and assumption, the Replacement
Bank shall become a Bank Party to this Agreement and shall have all the
rights and obligations of a Bank as set forth in such Assignment and
Assumption Agreement, and the Affected Bank shall be released from its
obligations hereunder, and no further consent or action by any party shall
be

 25

required.  Upon the consummation of any assignment pursuant to this
Section, a substitute note shall be issued to the Replacement Bank by
Borrower, in exchange for the return of the Affected Bank's Note.  Such
substitute note shall constitute a "Note" and the obligations evidenced by
such substitute note shall constitute "Obligations" for all purposes of
this Agreement and the other Loan Documents.  If the Replacement Bank is
not incorporated under the laws of the United States of America or a state
thereof, it shall, prior to the first date on which interest or fees are
payable hereunder for its account, deliver to Borrower and Administrative
Agent certification as to exemption from deduction or withholding of any
United States federal income taxes in accordance with Section 10.13.  Each
Replacement Bank shall be deemed to have made the representations contained
in, and shall be bound by the provisions of, Section 10.13.

            Borrower, Administrative Agent and the Banks shall execute such
modifications to the Loan Documents as shall be reasonably required in
connection with and to effectuate the foregoing.

                     ARTICLE IV.  CONDITIONS PRECEDENT

            Section  4.01  Conditions Precedent to the Initial Advance. 
The obligations of the Banks hereunder and the obligation of each Bank to
make the Initial Advance are subject to the condition precedent that
Administrative Agent shall have received on or before the Closing Date
(other than with respect to paragraph (10) below which shall be required
prior to the Initial Advance) each of the following documents, and each of
the following requirements shall have been fulfilled:

            (1)   Fees and Expenses.  The payment of (A) the first
      instalment of the annual administration fee required by Section
      2.07(c); (B) all fees and expenses incurred by Administrative Agent
      (including, without limitation, the reasonable fees and expenses of
      legal counsel) and (C) those fees specified in the Supplemental Fee
      Letter to be paid to Administrative Agent on or before the Closing
      Date;

            (2)  Note.  The Note for UBS, duly executed by Borrower;

            (3)   Financials of Borrower.  Audited VRT Consolidated
      Financial Statements as of and for the year ended December 31, 1993,
      acceptable to the Banks; 

            (4)  Evidence of Formation of Borrower.  Certified (as of the
      Closing Date) copies of Borrower's declaration of trust and by-laws,
      with all amendments thereto, and a 

 26

certificate of the Secretary of State of the jurisdiction of formation as
to its good standing therein;

            (5)  Evidence of All Trust Action.  Certified (as of the
      Closing Date) copies of all documents evidencing the trust action
      taken by Borrower authorizing the execution, delivery and performance
      of the Loan Documents and each other document to be delivered by or
      on behalf of Borrower pursuant to this Agreement;

            (6)  Incumbency and Signature Certificate of Borrower.  A
      certificate (dated as of the Closing Date) of the secretary of
      Borrower certifying the names and true signatures of each person
      authorized to sign on behalf of Borrower;

            (7)  Solvency Certificate.  A Solvency Certificate, duly
      executed, from Borrower; 

            (8)  Opinion of Counsel for Borrower.  A favorable opinion,
      dated the Closing Date, of Sullivan & Cromwell and Ballard Spahr
      Andrews & Ingersoll, counsel for Borrower, as to such matters as
      Administrative Agent may reasonably request;

            (9)  Authorization Letter.  The Authorization Letter, duly
      executed by Borrower;

            (10)  Request for Advance.  A request for an advance in
      accordance with Section 2.04; 

            (11)  Certificate.  The following statements shall be true and
      Administrative Agent shall have received a certificate dated the
      Closing Date signed by a duly authorized signatory of Borrower
      stating, to the best of the certifying party's knowledge, the
      following: 

                  (a)  All representations and warranties contained in this
            Agreement and in each of the other Loan Documents are true and
            correct on and as of the Closing Date as though made on and as
            of such date, and

                  (b)  No Default or Event of Default has occurred and is
            continuing, or could result from the transactions contemplated
            by this Agreement and the other Loan Documents; and

            (12)  Supplemental Fee Letter.  The Supplemental Fee Letter,
      duly executed by Borrower.

            Section  4.02  Conditions Precedent to Advances After the
Initial Advance.  The obligation of each Bank to make 

 27

advances of the Loans subsequent to the Initial Advance shall be subject to
satisfaction of the following conditions precedent:

            (1)  No Default or Event of Default shall have occurred and be
      continuing as of the date of the advance;

            (2)  Each of the representations and warranties contained in
      this Agreement and in each of the other Loan Documents (other than
      that in the last sentence of Section 5.13) shall be true and correct
      as of the date of the advance; and

            (3)  Administrative Agent shall have received a request for an
      advance in accordance with Section 2.04.

            Section  4.03  Deemed Representations.  Each request by
Borrower for, and acceptance by Borrower of, an advance of proceeds of the
Loans shall constitute a representation and warranty by Borrower that, as
of both the date of such request and the date of the advance (1) no Default
or Event of Default has occurred and is continuing, and (2) each
representation or warranty contained in this Agreement or the other Loan
Documents (other than that in the last sentence of Section 5.13) is true
and correct.

                 ARTICLE V.  REPRESENTATIONS AND WARRANTIES

            Borrower represents and warrants to Administrative Agent and
each Bank as follows:

            Section  5.01  Due Organization.  Borrower is duly organized,
validly existing and in good standing under the laws of the jurisdiction of
its organization, has the power and authority to own its assets and to
transact the business in which it is now engaged, and, if applicable, is
duly qualified for the conduct of business and in good standing under the
laws of each other jurisdiction in which such qualification is required and
where the failure to be so qualified would have a material adverse affect
on Borrower and its Consolidated Businesses taken as a whole.

            Section  5.02  Power and Authority; No Conflicts; Compliance
With Laws.  The execution, delivery and performance of the obligations
required to be performed by Borrower of the Loan Documents does not and
will not (a) require the consent or approval of its shareholders or such
consent or approval has been obtained, (b) contravene either its
declaration of trust or by-laws, (c) violate any provision of, or require
any filing, registration, consent or approval under, any Law (including,
without limitation, Regulation U), order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to
it, (d) result in a breach of or 

 28

constitute a default under or require any consent under any indenture or
loan or credit agreement or any other agreement, lease or instrument to
which it may be a party or by which it or its properties may be bound or
affected except for consents which have been obtained, (e) result in, or
require, the creation or imposition of any Lien, upon or with respect to
any of its properties now owned or hereafter acquired, or (f) cause it to
be in default under any such Law, order, writ, judgment, injunction,
decree, determination or award or any such indenture, agreement, lease or
instrument; to the best of its knowledge, Borrower is in compliance with
all Laws applicable to it and its properties where the failure to be in
compliance would cause a Material Adverse Change to occur.

            Section  5.03  Legally Enforceable Agreements.  Each Loan
Document is a legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and
other similar laws affecting creditors' rights generally.

            Section  5.04  Litigation.  Except as disclosed in Borrower's
SEC Reports existing as of the date hereof, there are no actions, suits or
proceedings pending or, to its knowledge, threatened against Borrower or
any of its Affiliates before any court or arbitrator or any Governmental
Authority reasonably likely to have a material effect on Borrower's ability
to repay the Loans.

            Section  5.05  Good Title to Properties.  Borrower and each of
its Affiliates have good, marketable and legal title to all of the
properties and assets each of them purports to own (including, without
limitation, those reflected in the December 31, 1993 financial statements
referred to in Section 5.13) and, in the case of all of Borrower's shopping
center properties, only with exceptions which do not materially detract
from the value of such property or assets or the use thereof in Borrower's
and such Affiliate's business, and except to the extent that any such
properties and assets have been encumbered or disposed of since the date of
such financial statements without violating any of the covenants contained
in Article VII or elsewhere in this Agreement.  Borrower and its Material
Affiliates enjoy peaceful and undisturbed possession of all leased property
necessary in any material respect in the conduct of their respective
businesses.  All such leases are valid and subsisting and are in full force
and effect.

            Section  5.06  Taxes.  Borrower has filed all tax returns
(federal, state and local) required to be filed and has paid all taxes,
assessments and governmental charges and levies due and payable without the
imposition of a penalty, including interest and penalties, except to the
extent they are the subject of a Good Faith Contest.

 29

            Section  5.07  ERISA.  Borrower is in compliance in all
material respects with all applicable provisions of ERISA.  Neither a
Reportable Event nor a Prohibited Transaction has occurred with respect to
any Plan; no notice of intent to terminate a Plan has been filed nor has
any Plan been terminated within the past five (5) years; no circumstance
exists which constitutes grounds under Section 4042 of ERISA entitling the
PBGC to institute proceedings to terminate, or appoint a trustee to
administer, a Plan, nor has the PBGC instituted any such proceedings;
Borrower and the ERISA Affiliates thereof have not completely or partially
withdrawn under Sections 4201 or 4204 of ERISA from a Multiemployer Plan;
Borrower and the ERISA Affiliates thereof have met the minimum funding
requirements of Section 412 of the Code and Section 302 of ERISA of each
with respect to the Plans of each and there is no Unfunded Current
Liability with respect to any Plan established or maintained by each; and
Borrower and the ERISA Affiliates thereof have not incurred any liability
to the PBGC under ERISA (other than for the payment of premiums under
Section 4007 of ERISA).  No part of the funds to be used by Borrower in
satisfaction of its obligations under this Agreement constitute "plan
assets" of any "employee benefit plan" within the meaning of ERISA or of
any "plan" within the meaning of Section 4975(e)(1) of the Code, as
interpreted by the Internal Revenue Service and the U.S. Department of
Labor in rules, regulations, releases, bulletins or as interpreted under
applicable case law.

            Section  5.08  No Default on Outstanding Judgments or Orders. 
Borrower has satisfied all judgments which are not being appealed and is
not in default with respect to any judgment, order, writ, injunction,
decree, rule or regulation of any court, arbitrator or federal, state,
municipal or other Governmental Authority, commission, board, bureau,
agency or instrumentality, domestic or foreign.

            Section  5.09  No Defaults on Other Agreements.  Except as
disclosed to the Bank Parties in writing or as disclosed in Borrower's SEC
Reports, Borrower, to the best of its knowledge, is not a party to any
indenture, loan or credit agreement or any lease or other agreement or
instrument or subject to any partnership, trust or other restriction which
is likely to result in a Material Adverse Change.  To the best of its
knowledge, Borrower is not in default in any respect in the performance,
observance or fulfillment of any of the obligations, covenants or
conditions contained in any agreement or instrument which is likely to
result in a Material Adverse Change.

            Section  5.10  Government Regulation.  Borrower is not subject
to regulation under the Investment Company Act of 1940 or any statute or
regulation limiting any such Person's ability to incur indebtedness for
money borrowed as contemplated hereby.

 30

            Section  5.11  Environmental Protection.  To Borrower's
knowledge, except as disclosed in Borrower's SEC Reports existing as of the
date hereof, none of Borrower's or its Affiliates' properties contains any
Hazardous Materials that, under any Environmental Law currently in effect,
(1) would impose liability on Borrower that is likely to result in a
Material Adverse Change, or (2) is likely to result in the imposition of a
Lien on any assets of Borrower or its Material Affiliates that is likely to
result in a Material Adverse Change.  To Borrower's knowledge, neither it
nor any of its Material Affiliates is in violation of, or subject to any
existing, pending or threatened investigation or proceeding by any
Governmental Authority under any Environmental Law that is likely to result
in a Material Adverse Change.

            Section  5.12  Solvency.  Borrower is, and upon consummation of
the transactions contemplated by this Agreement, the other Loan Documents
and any other documents, instruments or agreements relating thereto, will
be, Solvent.

            Section  5.13  Financial Statements.  The VRT Consolidated
Financial Statements most recently delivered to the Banks pursuant to the
terms of this Agreement are in all material respects complete and correct
and fairly present the financial condition of the subjects thereof as of
the dates of and for the periods covered by such statements, all in
accordance with GAAP.  There has been no Material Adverse Change since the
date of such most recently delivered VRT Consolidated Financial Statements.

            Section  5.14  Valid Existence of Affiliates.  Each Material
Affiliate is a corporation duly organized and existing in good standing
under the laws of the jurisdiction of its formation.  As to each Material
Affiliate, its correct name, the jurisdiction of its formation, Borrower's
percentage of beneficial interest therein, and the type of business in
which it is primarily engaged, are set forth on said EXHIBIT C.  Borrower
and each of its Material Affiliates have the power to own their respective
properties and to carry on their respective businesses now being conducted. 
Each Material Affiliate is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which the nature
of the respective businesses conducted by it or its respective properties,
owned or held under lease, make such qualification necessary and where the
failure to be so qualified would have the effect of a Material Adverse
Change on Borrower and its Consolidated Businesses taken as a whole.

            Section  5.15  Insurance.  Borrower and each of its Affiliates
has in force paid insurance with financially sound and reputable insurance
companies or associations in such amounts and covering such risks as are
usually carried by companies engaged in the same or a similar business and
similarly situated.

 31

            Section  5.16  Accuracy of Information; Full Disclosure. 
Neither this Agreement nor any documents, financial statements, reports,
notices, schedules, certificates, statements or other writings furnished by
or on behalf of Borrower to Administrative Agent or any Bank in connection
with the negotiation of this Agreement or the consummation of the
transactions contemplated hereby, or required herein to be furnished by or
on behalf of Borrower (other than projections which are made by Borrower in
good faith), contains any untrue or misleading statement of a material fact
or omits a material fact necessary to make the statements herein or therein
not misleading.  There is no fact which Borrower has not disclosed to
Administrative Agent and the Banks in writing or which is not included in
Borrower's SEC Reports which materially affects adversely nor, so far as
Borrower can now foresee, will materially affect adversely the business or
financial condition of Borrower or the ability of Borrower to perform this
Agreement and the other Loan Documents.

                     ARTICLE VI.  AFFIRMATIVE COVENANTS

            So long as any of the Notes shall remain unpaid or the Loan
Commitments remain in effect, or any other amount is owing by Borrower to
any Bank hereunder or under any other Loan Document, Borrower shall:

            Section  6.01  Maintenance of Existence.  Preserve and maintain
its legal existence and, if applicable, good standing in the jurisdiction
of organization and, if applicable, qualify and remain qualified as a
foreign corporation in each jurisdiction in which such qualification is
required, except to the extent that failure to so qualify is not likely to
result in a Material Adverse Change.

            Section  6.02  Maintenance of Records.  Keep adequate records
and books of account, in which complete entries will be made in accordance
with GAAP, reflecting all of its financial transactions. 

            Section  6.03  Maintenance of Insurance.  At all times,
maintain and keep in force, and cause each of its Material Affiliates to
maintain and keep in force, insurance with financially sound and reputable
insurance companies or associations in such amounts and covering such risks
as are usually carried by companies engaged in the same or a similar
business and similarly situated, which insurance may provide for reasonable
deductibility from coverage thereof.

            Section  6.04  Compliance with Laws; Payment of Taxes.  Comply
in all material respects with all Laws applicable to it or to any of its
properties or any part thereof, such compliance to include, without
limitation, paying before the same become 

 32

delinquent all taxes, assessments and governmental charges imposed upon it
or upon its property, except to the extent they are the subject of a Good
Faith Contest.

            Section  6.05  Right of Inspection.  At any reasonable time and
from time to time upon reasonable notice, permit Administrative Agent or
any Bank or any agent or representative thereof (provided that, at
Borrower's request, such Administrative Agent, Bank, agent or
representative must be accompanied by a representative of Borrower), to
examine and make copies and abstracts from the records and books of account
of, and visit the properties of, Borrower and to discuss the affairs,
finances and accounts of Borrower with the independent accountants of
Borrower.

            Section  6.06  Compliance With Environmental Laws.  Comply in
all material respects with all applicable Environmental Laws and
immediately pay or cause to be paid all costs and expenses incurred in
connection with such compliance, except to the extent there is a Good Faith
Contest.

            Section  6.07  Payment of Costs.  Pay all costs and expenses
required for the satisfaction of the conditions of this Agreement.

            Section  6.08  Maintenance of Properties.  Do all things
reasonably necessary to maintain, preserve, protect and keep its and its
Affiliates' properties in good repair, working order and condition.

            Section  6.09  Reporting and Miscellaneous Document
Requirements.  Furnish directly to each of the Banks:

            (1)  Annual Financial Statements.  As soon as available and in
any event within ninety (90) days after the end of each Fiscal Year, the
VRT Consolidated Financial Statements as of the end of and for such Fiscal
Year, in reasonable detail and stating in comparative form the respective
figures for the corresponding date and period in the prior Fiscal Year and
audited by Borrower's Accountants;

            (2)  Quarterly Financial Statements.  As soon as available and
in any event within forty-five (45) days after the end of each calendar
quarter (other than the last quarter of the Fiscal Year), the unaudited VRT
Consolidated Financial Statements as of the end of and for such calendar
quarter, in reasonable detail and stating in comparative form the
respective figures for the corresponding date and period in the prior
Fiscal Year;

            (3)  Certificate of No Default and Financial Compliance. 
Within fifty (50) days after the end of each of the first three quarters of
each Fiscal Year and within ninety-five (95) days after the end of each
Fiscal Year, a certificate of 

 33

Borrower's chief financial officer or treasurer (a) stating that, to the
best of his or her knowledge, no Default or Event of Default has occurred
and is continuing, or if a Default or Event of Default has occurred and is
continuing, specifying the nature thereof and the action which is proposed
to be taken with respect thereto; (b) stating that the covenants contained
in Section 6.10, Sections 7.02, 7.03 and 7.04 and in Article VIII have been
complied with (or specifying those that have not been complied with) and
including computations demonstrating such compliance (or non-compliance);
(c) setting forth the details of all items comprising Total Outstanding
Indebtedness (including amount, maturity, interest rate and amortization
requirements), Secured Indebtedness, Unencumbered Combined EBITDA, Interest
Expense and Unsecured Indebtedness; (d) containing a schedule of the
calculation, prepared by property, of Shopping Center EBITDA; and (e) only
at the end of each Fiscal Year stating Borrower's taxable income;

            (4)  Certificate of Borrower's Accountants.  Simultaneously
with the delivery of the annual financial statements required by paragraph
(1) of this Section, (a) a statement of Borrower's Accountants who audited
such financial statements comparing the computations set forth in the
financial compliance certificate required by paragraphs (3)(b) and (d) of
this Section to the audited financial statements required by paragraph (1)
of this Section and (b) when the audited financial statements required by
paragraph (1) of this Section have a qualified auditor's opinion, a
statement of Borrower's Accountants who audited such financial statements
of whether any Default or Event of Default has occurred and is continuing;

            (5)  Notice of Litigation.  Promptly after the commencement and
knowledge thereof, notice of all actions, suits, and proceedings before any
court or arbitrator, affecting Borrower which, if determined adversely to
Borrower is likely to result in a Material Adverse Change and which would
be required to be reported in Borrower's SEC Reports;

            (6)  Notices of Defaults and Events of Default.  As soon as
possible and in any event within ten (10) days after Borrower becomes aware
of the occurrence of a material Default or any Event of Default a written
notice setting forth the details of such Default or Event of Default and
the action which is proposed to be taken with respect thereto;

            (7)  Sales or Acquisitions of Assets.  Promptly after the
occurrence thereof, written notice of any Disposition or acquisition of
assets (other than acquisitions or Dispositions of investments such as
certificates of deposit, Treasury securities and money market deposits in
the ordinary course of Borrower's cash management) in excess of Twenty Five
Million Dollars ($25,000,000) together with, in the case of any acquisition
of such an asset, copies of the agreements governing the acquisition

 34

and historical financial information and Borrower's projections with
respect to the property acquired;

            (8)  Material Adverse Change.  As soon as is practicable and in
any event within five (5) days after knowledge of the occurrence of any
event or circumstance which is likely to result in or has resulted in a
Material Adverse Change and which would be required to be reported in
Borrower's SEC Reports, written notice thereof;

            (9)  Bankruptcy of Tenants.  Promptly after becoming aware of
the same, written notice of the bankruptcy, insolvency or cessation of
operations of any tenant in any property of Borrower or in which Borrower
has an interest to which four percent (4%) or more of aggregate minimum
rent payable to Borrower directly or through its Consolidated Businesses or
UJVs is attributable;

            (10)  Offices.  Thirty (30) days' prior written notice of any
change in the chief executive office or principal place of business of
Borrower;

            (11)  Environmental and Other Notices.  As soon as possible and
in any event within thirty (30) days after receipt, copies of all
Environmental Notices received by Borrower which are not received in the
ordinary course of business and which relate to a previously undisclosed
situation which is likely to result in a Material Adverse Change;

            (12)  Insurance Coverage.  Promptly, such information
concerning Borrower's insurance coverage as Administrative Agent may
reasonably request;

            (13)  Proxy Statements, Etc.  Promptly after the sending or
filing thereof, copies of all proxy statements, financial statements and
reports which Borrower or its Material Affiliates sends to its
shareholders, and copies of all regular, periodic and special reports, and
all registration statements which Borrower or its Material Affiliates files
with the Securities and Exchange Commission or any Governmental Authority
which may be substituted therefor, or with any national securities
exchange;

            (14)  Rent Rolls.  As soon as available and in any event within
ninety (90) days after the end of each Fiscal Year, a rent roll, tenant
sales report and operating statement for each property directly or
indirectly owned in whole or in part by Borrower;

            (15)  Capital Expenditures.  As soon as available and in any
event within ninety (90) days after the end of each Fiscal Year, a schedule
of such Fiscal Year's capital expenditures and a budget for the next Fiscal
Year's planned capital expenditures 

 35

for each property directly or indirectly owned in whole or in part by
Borrower; and

            (16)  General Information.  Promptly, such other information
respecting the condition or operations, financial or otherwise, of Borrower
or any properties of Borrower as Administrative Agent may from time to time
reasonably request.

            Section  6.10  Shopping Center EBITDA.  If for any calendar
quarter, Shopping Center EBITDA is less than $2,812,500 for such quarter,
then (a) thereafter, until Shopping Center EBITDA is again greater than
$2,812,500 for a calendar quarter, the Loan Commitment shall be reduced to
be an amount equal to the quotient determined by dividing Shopping Center
EBITDA from time to time by three and three quarters percent (3-3/4%) and
(b) if the outstanding principal amount of the Loans exceeds the reduced
amount of the Loan Commitment calculated pursuant to (a) above, Borrower
shall reduce the outstanding principal amount of the Loans to such reduced
Loan Commitment amount within ten days after Administrative Agent's notice
to Borrower to make such principal reduction.

            Section  6.11  Management.  At all times, Borrower or its
Affiliates shall provide property management and leasing services for at
least eighty percent (80%) of the community shopping center properties then
owned, directly or indirectly, in whole or in part by Borrower.

                      ARTICLE VII.  NEGATIVE COVENANTS

            So long as any of the Notes shall remain unpaid, or the Loan
Commitments remain in effect, or any other amount is owing by Borrower to
Administrative Agent or any Bank hereunder or under any other Loan
Document, Borrower shall not do any or all of the following:

            Section  7.01  Mergers Etc.  Merge or consolidate with (except
where Borrower is the surviving entity), or sell, assign, lease or
otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) (or enter into any agreement to do any of the
foregoing).

            Section  7.02  Investments.  Make any loan or advance to any
Person or purchase or otherwise acquire any capital stock, assets,
obligations or other securities of, make any capital contribution to, or
otherwise invest in, or acquire any interest in, any Person (any such
transaction, an "Investment") if such Investment constitutes the
acquisition of a minority interest in a Person (a "Minority Interest") and
the amount of such Investment, together with the value of all other
Minority Interests acquired after the Closing Date contributing to Equity 

 36

Value, would exceed fifteen percent (15%) of Total Market Capitalization. 
A fifty percent (50%) beneficial interest in a Person, in connection with
which the holder thereof exercises joint control over such Person with the
holder(s) of the other fifty percent (50%) beneficial interest, shall not
constitute a "Minority Interest" for purposes of this Section.

            Section  7.03  Sale of Assets.  Effect a Disposition of any of
its now owned or hereafter acquired assets (other than "margin stock" as
defined in Regulation U), including assets in which Borrower owns a
beneficial interest through its ownership of interests in joint ventures,
aggregating more than twenty five percent (25%) of Total Market
Capitalization.  

            Section  7.04  Encumbrance of Certain Assets.  At any time,
effect a Disposition of, mortgage, hypothecate or otherwise encumber to
secure a Debt (it being understood that, for purposes of this Section, an
asset shall be deemed "encumbered" if it is the subject of a pledge not to
encumber) any of the properties listed on EXHIBIT F hereof.

                     ARTICLE VIII.  FINANCIAL COVENANTS

            So long as any of the Notes shall remain unpaid, or the Loan
Commitments remain in effect, or any other amount is owing by Borrower to
Administrative Agent or any Bank under this Agreement or under any other
Loan Document, Borrower shall not permit or suffer:

            Section  8.01  Equity Value.  At any time, Equity Value to be
less than Five Hundred Million Dollars ($500,000,000); or

            Section  8.02  Relationship of Total Outstanding Indebtedness
to Equity Value.  At any time, Total Outstanding Indebtedness to exceed
fifty percent (50%) of Equity Value; or

            Section  8.03  Relationship of Secured Indebtedness to Equity
Value.  At any time, Secured Indebtedness to exceed thirty five percent
(35%) of Equity Value; or

            Section  8.04  Relationship of Combined EBITDA to Interest
Expense.  For any calendar quarter, the ratio of (1) Combined EBITDA to (2)
Interest Expense, each for such calendar quarter, to be less than 2.25 to
1.00; or

            Section  8.05  Relationship of Combined EBITDA to Total
Outstanding Indebtedness.  For any calendar quarter, the ratio (expressed
as a percentage) of (1) Combined EBITDA for such calendar quarter
annualized, to (2) Total Outstanding Indebtedness as of the end of such
calendar quarter to be less than fifteen percent (15%); or

 37

            Section  8.06  Funds From Operations.  For any calendar
quarter, Funds From Operations for such calendar quarter to be less than
Ten Million Dollars ($10,000,000); or

            Section  8.07  Unsecured Debt Yield.  For any calendar quarter,
Unsecured Debt Yield for such calendar quarter to be less than ten percent
(10%); or

            Section  8.08  Relationship of Unencumbered Combined EBITDA to
Interest Expense on Unsecured Indebtedness.  For any calendar quarter, the
ratio of (1) Unencumbered Combined EBITDA to (2) that portion of Interest
Expense attributable to Unsecured Indebtedness, each for such calendar
quarter, to be less than 1.40 to 1.00.

                       ARTICLE IX.  EVENTS OF DEFAULT

            Section  9.01  Events of Default.  Any of the following events
shall be an "Event of Default":

            (1)  If Borrower shall:  fail to pay the principal of any Notes
or any payment required under Section 6.10 as and when due; or fail to pay
interest accruing on any Notes as and when due and such failure to pay
shall continue unremedied for five (5) days after the due date of such
amount; or fail to pay any fee or any other amount due under this Agreement
or any other Loan Document as and when due and such failure to pay shall
continue unremedied for two (2) days after notice by Administrative Agent
of such failure to pay; or 

            (2)  If any representation or warranty made by Borrower in this
Agreement or in any other Loan Document or which is contained in any
certificate, document, opinion, financial or other statement furnished at
any time under or in connection with a Loan Document shall prove to have
been incorrect in any material respect on or as of the date made; or

            (3)  If Borrower shall fail (a) to perform or observe any term,
covenant or agreement contained in Section 6.11, Article VII or Article
VIII; or (b) to perform or observe any term, covenant or agreement
contained in this Agreement (other than obligations specifically referred
to elsewhere in this Section 9.01) and such failure shall remain unremedied
for thirty (30) consecutive calendar days after notice thereof; provided,
however, that if any such default under clause (b) above cannot by its
nature be cured within such thirty (30) day grace period and so long as
Borrower shall have commenced cure within such thirty (30) day grace period
and shall, at all times thereafter, diligently prosecute the same to
completion, Borrower shall have an additional period to cure such default;
in no event, however, is the foregoing intended to effect an extension of
the Maturity Date; or 

 38

            (4)  If Borrower shall fail (a) to pay any Debt (other than the
payment obligations described in paragraph (1) of this Section) in an
amount equal to or greater than Ten Million Dollars ($10,000,000) when due
(whether by scheduled maturity, required prepayment, acceleration, demand,
or otherwise) after the expiration of any applicable grace period, or (b)
to perform or observe any material term, covenant, or condition under any
agreement or instrument relating to any such Debt, when required to be
performed or observed, if the effect of such failure to perform or observe
is to accelerate, or to permit the acceleration of, after the giving of
notice or the lapse of time, or both (other than in cases where, in the
judgment of the Required Banks, meaningful discussions likely to result in
(i) a waiver or cure of the failure to perform or observe, or (ii)
otherwise averting such acceleration are in progress between Borrower and
the obligee of such Debt), the maturity of such Debt, or any such Debt
shall be declared to be due and payable, or required to be prepaid (other
than by a regularly scheduled or otherwise required prepayment), prior to
the stated maturity thereof; or

            (5)  If Borrower, or any Affiliate of Borrower (other than
Alexander's, Inc. and its subsidiaries) to which Fifty Million Dollars
($50,000,000) or more of Total Market Capitalization is attributable,
shall:  (a) generally not, or be unable to, or shall admit in writing its
inability to, pay its debts as such debts become due; or (b) make an
assignment for the benefit of creditors, petition or apply to any tribunal
for the appointment of a custodian, receiver or trustee for it or a
substantial part of its assets; or (c) commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution
or liquidation law or statute of any jurisdiction, whether now or hereafter
in effect; or (d) have had any such petition or application filed or any
such proceeding shall have been commenced, against it, in which an
adjudication or appointment is made or order for relief is entered, or
which petition, application or proceeding remains undismissed or unstayed
for a period of sixty (60) days or more; or (e) be the subject of any
proceeding under which all or a substantial part of its assets may be
subject to seizure, forfeiture or divestiture; or (f) by any act or
omission indicate its consent to, approval of or acquiescence in any such
petition, application or proceeding or order for relief or the appointment
of a custodian, receiver or trustee for all or any substantial part of its
property; or (g) suffer any such custodianship, receivership or trusteeship
for all or any substantial part of its property, to continue undischarged
for a period of sixty (60) days or more; or

            (6)  If one or more judgments, decrees or orders for the
payment of money in excess of Ten Million Dollars ($10,000,000) in the
aggregate shall be rendered against Borrower, and any such judgments,
decrees or orders shall 

 39

continue unsatisfied and in effect for a period of thirty (30) consecutive
days without being vacated, discharged, satisfied or stayed or bonded
pending appeal; or

            (7)  If any of the following events shall occur or exist with
respect to Borrower, or any ERISA Affiliate of Borrower:  (a) any
Prohibited Transaction involving any Plan; (b) any Reportable Event with
respect to any Plan: (c) the filing under Section 4041 of ERISA of a notice
of intent to terminate any Plan or the termination of any Plan; (d) any
event or circumstance which might constitute grounds entitling the PBGC to
institute proceedings under Section 4042 of ERISA for the termination of,
or for the appointment of a trustee to administer, any Plan, or the
institution by the PBGC of any such proceedings; or (e) complete or partial
withdrawal under Section 4201 or 4204 of ERISA from a Multiemployer Plan or
the reorganization, insolvency, or termination of any Multiemployer Plan;
and in each case above, if such event or conditions, if any, could in the
opinion of any Bank subject Borrower or any ERISA Affiliate of Borrower to
any tax, penalty, or other liability to a Plan, Multiemployer Plan, the
PBGC or otherwise (or any combination thereof) which in the aggregate
exceeds or may exceed Fifty Thousand Dollars ($50,000); or 

            (8)  If at any time Borrower is not a qualified real estate
investment trust under Sections 856 through 860 of the Code or is not
listed on the New York Stock Exchange; or

            (9)  If at any time Borrower constitutes plan assets for ERISA
purposes (within the meaning of C.F.R. sec.2510.3-101).

            Section  9.02  Remedies.  If any Event of Default shall occur
and be continuing, Administrative Agent shall, upon request of the Required
Banks, by notice to Borrower, (1) declare the unpaid balance of the Notes,
all interest thereon, and all other amounts payable under this Agreement to
be forthwith due and payable, whereupon such balance, all such interest,
and all such amounts due under this Agreement shall become and be forthwith
due and payable, without presentment, demand, protest, or further notice of
any kind, all of which are hereby expressly waived by Borrower; and/or (2)
exercise any remedies provided in any of the Loan Documents or by law.

          ARTICLE X.  ADMINISTRATIVE AGENT; RELATIONS AMONG BANKS

            Section 10.01  Appointment, Powers and Immunities of
Administrative Agent.  Each Bank hereby irrevocably appoints and authorizes
Administrative Agent to act as its agent hereunder and under any other Loan
Document with such powers as are specifically delegated to Administrative
Agent by the terms of this Agreement and any other Loan Document, together
with such other powers as are reasonably incidental thereto.  

 40

Administrative Agent shall have no duties or responsibilities except those
expressly set forth in this Agreement and any other Loan Document or
required by law, and shall not by reason of this Agreement be a fiduciary
or trustee for any Bank except to the extent that Administrative Agent acts
as an agent with respect to the receipt or payment of funds. 
Administrative Agent shall not be responsible to the Banks for any
recitals, statements, representations or warranties made by Borrower or any
officer, partner or official of Borrower or any other Person contained in
this Agreement or any other Loan Document, or in any certificate or other
document or instrument referred to or provided for in, or received by any
of them under, this Agreement or any other Loan Document, or for the value,
legality, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document or any other
document or instrument referred to or provided for herein or therein, for
the perfection or priority of any Lien securing the Obligations or for any
failure by Borrower to perform any of its obligations hereunder or
thereunder.  Administrative Agent may employ agents and attorneys-in-fact
and shall not be responsible, except as to money or securities received by
it or its authorized agents, for the negligence or misconduct of any such
agents or attorneys-in-fact selected by it with reasonable care.  Neither
Administrative Agent nor any of its directors, officers, employees or
agents shall be liable or responsible for any action taken or omitted to be
taken by it or them hereunder or under any other Loan Document or in
connection herewith or therewith, except for its or their own gross
negligence or willful misconduct.  Borrower shall pay any fee agreed to by
Borrower and Administrative Agent with respect to Administrative Agent's
services hereunder.

            Section 10.02  Reliance by Administrative Agent. 
Administrative Agent shall be entitled to rely upon any certification,
notice or other communication (including any thereof by telephone, telex,
telegram or cable) believed by it to be genuine and correct and to have
been signed or sent by or on behalf of the proper Person or Persons, and
upon advice and statements of legal counsel, independent accountants and
other experts selected by Administrative Agent.  Administrative Agent may
deem and treat each Bank as the holder of the Loan made by it for all
purposes hereof and shall not be required to deal with any Person who has
acquired a participation in any Loan or participation from a Bank.  As to
any matters not expressly provided for by this Agreement or any other Loan
Document, Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, hereunder in accordance with
instructions signed by the Required Banks, and such instructions of the
Required Banks and any action taken or failure to act pursuant thereto
shall be binding on all of the Banks and any other holder of all or any
portion of any Loan or participation.  

 41

            Section 10.03  Defaults.  Administrative Agent shall not be
deemed to have knowledge of the occurrence of a Default or Event of Default
unless Administrative Agent has received notice from a Bank or Borrower
specifying such Default or Event of Default and stating that such notice is
a "Notice of Default."  In the event that Administrative Agent receives
such a notice of the occurrence of a Default or Event of Default,
Administrative Agent shall give prompt notice thereof to the Banks. 
Administrative Agent, following consultation with the Banks, shall (subject
to Section 10.07) take such action with respect to such Default or Event of
Default which is continuing as shall be directed by the Required Banks;
provided that, unless and until Administrative Agent shall have received
such directions, Administrative Agent may take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interest of the Banks; and provided
further that Administrative Agent shall not send a notice of Default or
acceleration to Borrower without the approval of the Required Banks.  In no
event shall Administrative Agent be required to take any such action which
it determines to be contrary to law.

            Section 10.04  Rights of Administrative Agent as a Bank.  With
respect to its Loan Commitment and the Loan provided by it, Administrative
Agent in its capacity as a Bank hereunder shall have the same rights and
powers hereunder as any other Bank and may exercise the same as though it
were not acting as Administrative Agent, and the term "Bank" or "Banks"
shall, unless the context otherwise indicates, include Administrative Agent
in its capacity as a Bank.  Administrative Agent and its Affiliates may
(without having to account therefor to any Bank) accept deposits from, lend
money to (on a secured or unsecured basis), and generally engage in any
kind of banking, trust or other business with Borrower (and any Affiliates
of Borrower) as if it were not acting as Administrative Agent.

            Section 10.05  Indemnification of Administrative Agent.  Each
Bank agrees to indemnify Administrative Agent (to the extent not reimbursed
under Section 12.04 or under the applicable provisions of any other Loan
Document, but without limiting the obligations of Borrower under Section
12.04 or such provisions), for its Pro Rata Share of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever
which may be imposed on, incurred by or asserted against Administrative
Agent in any way relating to or arising out of this Agreement, any other
Loan Document or any other documents contemplated by or referred to herein
or the transactions contemplated hereby or thereby (including, without
limitation, the costs and expenses which Borrower is obligated to pay under
Section 12.04) or under the applicable provisions of any other Loan
Document or the enforcement of any of the terms hereof or thereof or of any
such other documents or instruments; provided that no Bank shall be 

 42

liable for (1) any of the foregoing to the extent they arise from the gross
negligence or willful misconduct of the party to be indemnified, (2) any
loss of principal or interest with respect to Administrative Agent's Loan
or (3) any loss suffered by Administrative Agent in connection with a swap
or other interest rate hedging arrangement entered into with Borrower.

            Section 10.06  Non-Reliance on Administrative Agent and Other
Banks.  Each Bank agrees that it has, independently and without reliance on
Administrative Agent or any other Bank, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of
Borrower and the decision to enter into this Agreement and that it will,
independently and without reliance upon Administrative Agent or any other
Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under this Agreement or any other Loan
Document.  Administrative Agent shall not be required to keep itself
informed as to the performance or observance by Borrower of this Agreement
or any other Loan Document or any other document referred to or provided
for herein or therein or to inspect the properties or books of Borrower. 
Except for notices, reports and other documents and information expressly
required to be furnished to the Banks by Administrative Agent hereunder,
Administrative Agent shall not have any duty or responsibility to provide
any Bank with any credit or other information concerning the affairs,
financial condition or business of Borrower (or any Affiliate of Borrower)
which may come into the possession of Administrative Agent or any of its
Affiliates.  Administrative Agent shall not be required to file this
Agreement, any other Loan Document or any document or instrument referred
to herein or therein, for record or give notice of this Agreement, any
other Loan Document or any document or instrument referred to herein or
therein, to anyone.

            Section 10.07  Failure of Administrative Agent to Act.  Except
for action expressly required of Administrative Agent hereunder,
Administrative Agent shall in all cases be fully justified in failing or
refusing to act hereunder unless it shall have received further assurances
(which may include cash collateral) of the indemnification obligations of
the Banks under Section 10.05 in respect of any and all liability and
expense which may be incurred by it by reason of taking or continuing to
take any such action.

            Section 10.08  Resignation or Removal of Administrative Agent. 
Administrative Agent hereby agrees not to unilaterally resign except in the
event it becomes an Affected Bank and is removed or replaced as a Bank
pursuant to Section 3.07, in which event it shall have the right to resign. 
Administrative Agent may be removed at any time with or without cause by
the Required Banks, provided that Borrower and the other Banks shall be
promptly notified thereof.  Upon any such removal, the Required 

 43

Banks shall have the right to appoint a successor Administrative Agent
which successor Administrative Agent, so long as it is reasonably
acceptable to the Required Banks, shall be that Bank then having the
greatest Loan Commitment.  If no successor Administrative Agent shall have
been so appointed by the Required Banks and shall have accepted such
appointment within thirty (30) days after the Required Banks' removal of
the retiring Administrative Agent, then the retiring Administrative Agent
may, on behalf of the Banks, appoint a successor Administrative Agent,
which shall be one of the Banks.  The Required Banks or the retiring
Administrative Agent, as the case may be, shall upon the appointment of a
successor Administrative Agent promptly so notify Borrower and the other
Banks.  Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder.  After any retiring Administrative
Agent's removal hereunder as Administrative Agent, the provisions of this
Article X shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

            Section 10.09  Amendments Concerning Agency Function. 
Notwithstanding anything to the contrary contained in this Agreement,
Administrative Agent shall not be bound by any waiver, amendment,
supplement or modification of this Agreement or any other Loan Document
which affects its duties, rights, and/or function hereunder or thereunder
unless it shall have given its prior written consent thereto.

            Section 10.10  Liability of Administrative Agent. 
Administrative Agent shall not have any liabilities or responsibilities to
Borrower on account of the failure of any Bank to perform its obligations
hereunder or to any Bank on account of the failure of Borrower to perform
its obligations hereunder or under any other Loan Document.

            Section 10.11  Transfer of Agency Function.  Without the
consent of Borrower or any Bank, Administrative Agent may at any time or
from time to time transfer its functions as Administrative Agent hereunder
to any of its offices wherever located in the United States, provided that
Administrative Agent shall promptly notify Borrower and the Banks thereof.

            Section 10.12  Non-Receipt of Funds by Administrative Agent. 
Unless Administrative Agent shall have received notice from a Bank or
Borrower (either one as appropriate being the "Payor") prior to the date on
which such Bank is to make payment hereunder to Administrative Agent of the
proceeds of a Loan or Borrower is to make payment to Administrative Agent,
as the case may be (either such payment being a "Required Payment"), which 

 44

notice shall be effective upon receipt, that the Payor will not make the
Required Payment in full to Administrative Agent, Administrative Agent may
assume that the Required Payment has been made in full to Administrative
Agent on such date, and Administrative Agent in its sole discretion may,
but shall not be obligated to, in reliance upon such assumption, make the
amount thereof available to the intended recipient on such date.  If and to
the extent the Payor shall not have in fact so made the Required Payment in
full to Administrative Agent, the recipient of such payment shall repay to
Administrative Agent forthwith on demand such amount made available to it
together with interest thereon, for each day from the date such amount was
so made available by Administrative Agent until the date Administrative
Agent recovers such amount, at the customary rate set by Administrative
Agent for the correction of errors among Banks for three (3) Banking Days
and thereafter at the Base Rate.
  
            Section 10.13  Withholding Taxes.  Each Bank represents at all
times during the term of this Agreement that it is entitled to receive any
payments to be made to it hereunder without the withholding of any tax and
will furnish to Administrative Agent and Borrower such forms,
certifications, statements and other documents as Administrative Agent or
Borrower may request from time to time to evidence such Bank's exemption
from the withholding of any tax imposed by any jurisdiction or to enable
Administrative Agent or Borrower to comply with any applicable Laws or
regulations relating thereto.  Without limiting the effect of the
foregoing, if any Bank is not created or organized under the laws of the
United States of America or any state thereof, such Bank will furnish to
Administrative Agent and Borrower a United States Internal Revenue Service
Form 4224 in respect of all payments to be made to such Bank by Borrower or
Administrative Agent under this Agreement or any other Loan Document or a
United States Internal Revenue Service Form 1001 establishing such Bank's
complete exemption from United States withholding tax in respect of
payments to be made to such Bank by Borrower or Administrative Agent under
this Agreement or any other Loan Document, or such other forms,
certifications, statements or documents, duly executed and completed by
such Bank as evidence of such Bank's exemption from the withholding of U.S.
tax with respect thereto.  Administrative Agent shall not be obligated to
make any payments hereunder to such Bank in respect of any Loan or
participation or such Bank's Loan Commitment or obligation to purchase
participations until such Bank shall have furnished to Administrative Agent
and Borrower the requested form, certification, statement or document.

            Section 10.14  Minimum Commitment by UBS.  Subsequent to the
Closing Date, UBS hereby agrees to maintain a Loan Commitment in an amount
no less than 40% of the Total Loan Commitment, as the same may be decreased
from time to time in accordance with the provisions of this Agreement, and
further 

 45

agrees to hold and not to participate or assign any of such amount other
than an assignment to a Federal Reserve Bank or to the Parent or a
majority-owned subsidiary of UBS.

            Section 10.15  Pro Rata Treatment.  Except to the extent
otherwise provided, (1) each advance of proceeds of the Loans shall be made
by the Banks, (2) each reduction of the amount of the Total Loan Commitment
under Section 2.10 shall be applied to the Loan Commitments of the Banks,
and (3) each payment of the commitment fee accruing under Section 2.07(b)
shall be made for the account of the Banks, ratably according to the
amounts of their respective Loan Commitments.

            Section 10.16  Sharing of Payments Among Banks.  If a Bank
shall obtain payment of any principal of or interest on any Loan made by it
through the exercise of any right of setoff, banker's lien, counterclaim,
or by any other means (including direct payment), and such payment results
in such Bank receiving a greater payment than it would have been entitled
to had such payment been paid directly to Administrative Agent for
disbursement to the Banks, then such Bank shall promptly purchase for cash
from the other Banks participations in the Loans made by the other Banks in
such amounts, and make such other adjustments from time to time as shall be
equitable to the end that all the Banks shall share ratably the benefit of
such payment.  To such end the Banks shall make appropriate adjustments
among themselves (by the resale of participations sold or otherwise) if
such payment is rescinded or must otherwise be restored.  Borrower agrees
that any Bank so purchasing a participation in the Loans made by other
Banks may exercise all rights of setoff, banker's lien, counterclaim or
similar rights with respect to such participation.  Nothing contained
herein shall require any Bank to exercise any such right or shall affect
the right of any Bank to exercise, and retain the benefits of exercising,
any such right with respect to any other indebtedness of Borrower. 

            Section 10.17  Possession of Documents.  Each Bank shall keep
possession of its own Note.  Administrative Agent shall hold all the other
Loan Documents and related documents in its possession and maintain
separate records and accounts with respect thereto, and shall permit the
Banks and their representatives access at all reasonable times to inspect
such Loan Documents, related documents, records and accounts.

                     ARTICLE XI.  NATURE OF OBLIGATIONS

            Section 11.01  Absolute and Unconditional Obligations. 
Borrower acknowledges and agrees that its obligations and liabilities under
this Agreement and under the other Loan Documents shall be absolute and
unconditional irrespective of: (1) any lack of validity or enforceability
of any of the Obligations, any Loan Documents, or any agreement or
instrument 

 46

relating thereto; (2) any change in the time, manner or place of payment
of, or in any other term in respect of, all or any of the Obligations, or
any other amendment or waiver of or consent to any departure from any Loan
Documents or any other documents or instruments executed in connection with
or related to the Obligations; (3) any exchange or release of any
collateral, if any, or of any other Person from all or any of the
Obligations; or (4) any other circumstances which might otherwise
constitute a defense available to, or a discharge of, Borrower or any other
Person in respect of the Obligations.

            The obligations and liabilities of Borrower under this
Agreement and other Loan Documents shall not be conditioned or contingent
upon the pursuit by any Bank or any other Person at any time of any right
or remedy against Borrower or any other Person which may be or become
liable in respect of all or any part of the Obligations or against any
collateral or security or guarantee therefor or right of setoff with
respect thereto.

            Section 11.02  Non-Recourse to VRT Principals.  Notwithstanding
anything to the contrary contained in this Agreement, in any of the other
Loan Documents, or in any other instruments, certificates, documents or
agreements executed in connection with the Loans (all of the foregoing, for
purposes of this Section, hereinafter referred to, individually and
collectively, as the "Relevant Documents"), no recourse under or upon any
Obligation, representation, warranty, promise or other matter whatsoever
shall be had against any of the VRT Principals and each Bank expressly
waives and releases, on behalf of itself and its successors and assigns,
all right to assert any liability whatsoever under or with respect to the
Relevant Documents against, or to satisfy any claim or obligation arising
thereunder against, any of the VRT Principals or out of any assets of the
VRT Principals, provided, however, that nothing in this Section shall be
deemed to: (1) release Borrower from any personal liability pursuant to, or
from any of its respective obligations under, the Relevant Documents, or
from personal liability for its fraudulent actions or fraudulent omissions;
(2) release any VRT Principals from personal liability for its or his own
fraudulent actions or fraudulent omissions; (3) constitute a waiver of any
obligation evidenced or secured by, or contained in, the Relevant Documents
or affect in any way the validity or enforceability of the Relevant
Documents; or (4) limit the right of Administrative Agent and/or the Banks
to proceed against or realize upon any collateral hereafter given for the
Loans or any and all of the assets of Borrower (notwithstanding the fact
that the VRT Principals have an ownership interest in Borrower and,
thereby, an interest in the assets of Borrower) or to name Borrower (or, to
the extent that the same are required by applicable law or are determined
by a court to be necessary parties in connection with an action or suit
against Borrower or any collateral hereafter given for the Loans, any of
the VRT Principals) as a party defendant in, and to enforce against any
collateral hereafter 

 47

given for the Loans and/or assets of Borrower any judgment obtained by
Administrative Agent and/or the Banks with respect to, any action or suit
under the Relevant Documents so long as no judgment shall be taken (except
to the extent taking a judgment is required by applicable law or determined
by a court to be necessary to preserve Administrative Agent's and/or Banks'
rights against any collateral hereafter given for the Loans or Borrower,
but not otherwise) or shall be enforced against the VRT Principals or their
assets.

                        ARTICLE XII.  MISCELLANEOUS

            Section 12.01  Binding Effect of Request for Advance.  Borrower
agrees that, by its acceptance of any advance of proceeds of the Loans
under this Agreement, it shall be bound in all respects by the request for
advance submitted on its behalf in connection therewith with the same force
and effect as if Borrower had itself executed and submitted the request for
advance and whether or not the request for advance is executed and/or
submitted by an authorized person.

            Section 12.02  Amendments and Waivers.  No amendment or
material waiver of any provision of this Agreement or any other Loan
Document nor consent to any material departure by Borrower therefrom, shall
in any event be effective unless the same shall be in writing and signed by
the Required Banks and, solely for purposes of its acknowledgment thereof,
Administrative Agent, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given,
provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Banks do any of the following:  (1)  reduce
the principal of, or interest on, the Notes or any fees due hereunder or
any other amount due hereunder or under any Loan Document; (2) postpone any
date fixed for any payment of principal of, or interest on, the Notes or
any fees due hereunder or under any Loan Document, or waive any default in
the payment of principal, interest or any other amount due hereunder or
under any Loan Documents; (3) change the definition of Required Banks; (4)
amend this Section or any other provision requiring the consent of all the
Banks; or (5) waive any default under paragraph (5) of Section 9.01.  Any
advance of proceeds of the Loans made prior to or without the fulfillment
by Borrower of all of the conditions precedent thereto, whether or not
known to Administrative Agent and the Banks, shall not constitute a waiver
of the requirement that all conditions, including the non-performed
conditions, shall be required with respect to all future advances.  No
failure on the part of Administrative Agent or any Bank to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof
or preclude any other or further exercise thereof or the exercise of any
other right.  The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

 48

            Section 12.03  Usury.  Anything herein to the contrary
notwithstanding, the obligations of Borrower under this Agreement and the
Notes shall be subject to the limitation that payments of interest shall
not be required to the extent that receipt thereof would be contrary to
provisions of law applicable to a Bank limiting rates of interest which may
be charged or collected by such Bank.

            Section 12.04  Expenses; Indemnification.   Borrower agrees to
reimburse Administrative Agent on demand for all costs, expenses, and
charges (including, without limitation, all reasonable fees and charges of
engineers, appraisers and external legal counsel) incurred by
Administrative Agent in connection with the Loans and to reimburse each of
the Banks for reasonable legal costs, expenses and charges incurred by each
of the Banks in connection with the performance or enforcement of this
Agreement, the Notes, or any other Loan Documents; provided, however, that
Borrower is not responsible for costs, expenses and charges incurred by the
Bank Parties in connection with the administration or syndication of the
Loans (other than the administration fee required by Section 2.07(c)). 
Borrower agrees to indemnify Administrative Agent and each Bank and their
respective directors, officers, employees and agents from, and hold each of
them harmless against, any and all losses, liabilities, claims, damages or
expenses incurred by any of them arising out of or by reason of (x) any
claims by brokers due to acts or omissions by Borrower, or (y) any
investigation or litigation or other proceedings (including any threatened
investigation or litigation or other proceedings) relating to any actual or
proposed use by Borrower of the proceeds of the Loans, including without
limitation, the reasonable fees and disbursements of counsel incurred in
connection with any such investigation or litigation or other proceedings
(but excluding any such losses, liabilities, claims, damages or expenses
incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified).

            The obligations of Borrower under this Section shall survive
the repayment of all amounts due under or in connection with any of the
Loan Documents and the termination of the Loans.

            Section 12.05  Assignment; Participation.  This Agreement shall
be binding upon, and shall inure to the benefit of, Borrower,
Administrative Agent, the Banks and their respective successors and
permitted assigns.  Borrower may not assign or transfer its rights or
obligations hereunder.

            Any Bank may at any time grant to one or more banks or other
institutions (each a "Participant") participating interests in its Loan
(the "Participations").  In the event of any such grant by a Bank of a
participating interest to a Participant, whether or not Borrower or
Administrative Agent was given notice, such Bank shall remain responsible
for the performance of its 

 49

obligations hereunder, and Borrower and Administrative Agent shall continue
to deal solely and directly with such Bank in connection with such Bank's
rights and obligations hereunder.  Any agreement pursuant to which any Bank
may grant such a participating interest shall provide that such Bank shall
retain the sole right and responsibility to enforce the obligations of
Borrower hereunder and under any other Loan Document including, without
limitation, the right to approve any amendment, modification or waiver of
any provision of this Agreement or any other Loan Document; provided that
such participation agreement may provide that such Bank will not agree to
any modification, amendment or waiver of this Agreement described in
Section 12.02 without the consent of the Participant.

            Subject to the provisions of Section 10.14, any Bank having a
Loan Commitment in an amount of Fifteen Million Dollars ($15,000,000) or
more may at any time assign to any bank or other institution with the
acknowledgment of Administrative Agent and the consent of Borrower and UBS,
which consent shall not be unreasonably withheld or delayed (such assignee,
a "Consented Assignee"), or to one or more banks or other institutions
which are majority owned subsidiaries of a Bank or to the Parent of a Bank
(each Consented Assignee or subsidiary bank or institution, an "Assignee")
all, or a proportionate part of all, of its rights and obligations under
this Agreement and its Note, and such Assignee shall assume rights and
obligations, pursuant to an Assignment and Assumption Agreement executed by
such Assignee and the Bank, provided that, in each case, after giving
effect to such assignment each Bank's and each Assignee's portion of the
Loan will be equal to or greater than Five Million Dollars ($5,000,000). 
Upon execution and delivery of such instrument and payment by such Assignee
to the Bank of an amount equal to the purchase price agreed between the
Bank and such Assignee, such Assignee shall be a Bank Party to this
Agreement and shall have all the rights and obligations of a Bank as set
forth in such Assignment and Assumption Agreement, and the Bank shall be
released from its obligations hereunder to a corresponding extent, and no
further consent or action by any party shall be required.  Upon the
consummation of any assignment pursuant to this paragraph, substitute notes
shall be issued to the assigning Bank and Assignee by Borrower, in exchange
for the return of the original Note.  All such substitute notes shall
constitute "Notes" and the obligations evidenced by such substitute notes
shall constitute "Obligations" for all purposes of this Agreement and the
other Loan Documents.  If the Assignee is not incorporated under the laws
of the United States of America or a state thereof, it shall, prior to the
first date on which interest or fees are payable hereunder for its account,
deliver to Borrower and Administrative Agent certification as to exemption
from deduction or withholding of any United States federal income taxes in
accordance with Section 10.13.  Each Assignee shall be deemed to have made
the representations 

 50

contained in, and shall be bound by the provisions of, Section 10.13.

            Any Bank may at any time assign all or any portion of its
rights under this Agreement and its Note to a Federal Reserve Bank.  No
such assignment shall release the transferor Bank from its obligations
hereunder.

            Borrower recognizes that in connection with a Bank's selling of
Participations or making of assignments, any or all documentation,
financial statements, appraisals and other data, or copies thereof,
relevant to Borrower or the Loans may be exhibited to and retained by any
such Participant or assignee or prospective Participant or assignee.  In
connection with a Bank's delivery of any financial statements and
appraisals to any such Participant or assignee or prospective Participant
or assignee, such Bank shall also indicate that the same are delivered on a
confidential basis.  Borrower agrees to provide all assistance reasonably
requested by a Bank to enable such Bank to sell Participations or make
assignments of its Loan as permitted by this Section.  Each Bank agrees to
provide Borrower with notice of all Participations sold by such Bank.

            Section 12.06  Documentation Satisfactory.  All documentation
required from or to be submitted on behalf of Borrower in connection with
this Agreement and the documents relating hereto shall be subject to the
prior approval of, and be satisfactory in form and substance to,
Administrative Agent, its counsel and, where specifically provided herein,
the Banks.  In addition, the persons or parties responsible for the
execution and delivery of, and signatories to, all of such documentation,
shall be acceptable to, and subject to the approval of, Administrative
Agent and its counsel and the Banks.

            Section 12.07  Notices.  Unless the party to be notified
otherwise notifies the other party in writing as provided in this Section,
and except as otherwise provided in this Agreement, notices shall be given
to Administrative Agent by telephone, confirmed by writing, and to the
Banks and to Borrower by ordinary mail or overnight courier or telecopy,
receipt confirmed, addressed to such party at its address on the signature
page of this Agreement.  Notices shall be effective:  (1) if by telephone,
at the time of such telephone conversation, (2) if given by mail, three (3)
days after mailing; (3) if given by overnight courier, upon receipt; and
(4) if given by telecopy, upon receipt.

            Section 12.08  Setoff.  To the extent permitted or not
expressly prohibited by applicable law, Borrower agrees that, in addition
to (and without limitation of) any right of setoff, bankers' lien or
counterclaim a Bank may otherwise have, each Bank shall be entitled, at its
option, to offset balances (general or special, time or demand, provisional
or final) held 

 51

by it for the account of Borrower at any of such Bank's offices, in Dollars
or in any other currency, against any amount payable by Borrower to such
Bank under this Agreement or such Bank's Note, or any other Loan Document
which is not paid when due (regardless of whether such balances are then
due to Borrower), in which case it shall promptly notify Borrower and
Administrative Agent thereof; provided that such Bank's failure to give
such notice shall not affect the validity thereof.  Payments by Borrower
hereunder or under the other Loan Documents shall be made without setoff or
counterclaim.  

            Section 12.09  Table of Contents; Headings.  Any table of
contents and the headings and captions hereunder are for convenience only
and shall not affect the interpretation or construction of this Agreement.

            Section 12.10  Severability.  The provisions of this Agreement
are intended to be severable.  If for any reason any provision of this
Agreement shall be held invalid or unenforceable in whole or in part in any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without in any manner
affecting the validity or enforceability thereof in any other jurisdiction
or the remaining provisions hereof in any jurisdiction.

            Section 12.11  Counterparts.  This Agreement may be executed in
any number of counterparts, all of which taken together shall constitute
one and the same instrument, and any party hereto may execute this
Agreement by signing any such counterpart.

            Section 12.12  Integration.  The Loan Documents and
Supplemental Fee Letter set forth the entire agreement among the parties
hereto relating to the transactions contemplated thereby and supersede any
prior oral or written statements or agreements with respect to such
transactions.

            Section 12.13  Governing Law.  This Agreement shall be governed
by, and interpreted and construed in accordance with, the laws of the State
of New York.

            Section 12.14  Waivers.  To the extent permitted or not
expressly prohibited by applicable law, in connection with the obligations
and liabilities as aforesaid, Borrower hereby waives:  (1) promptness and
diligence; (2) notice of any actions taken by any Bank Party under this
Agreement, any other Loan Document or any other agreement or instrument
relating thereto except to the extent otherwise provided herein; (3) all
other notices, demands and protests, and all other formalities of every
kind in connection with the enforcement of the Obligations, the omission of
or delay in which, but for the provisions of this Section, might constitute
grounds for relieving Borrower of its 

 52

obligations hereunder; (4) any requirement that any Bank Party protect,
secure, perfect or insure any Lien on any collateral or exhaust any right
or take any action against Borrower or any other Person or any collateral;
(5) any right or claim of right to cause a marshalling of the assets of
Borrower; and (6) all rights of subrogation or contribution, whether
arising by contract or operation of law (including, without limitation, any
such right arising under the Federal Bankruptcy Code) or otherwise by
reason of payment by Borrower, either jointly or severally, pursuant to
this Agreement or other Loan Documents.

            Section 12.15  Jurisdiction; Immunities.  Borrower,
Administrative Agent and each Bank hereby irrevocably submit to the
jurisdiction of any New York State or United States Federal court sitting
in New York City over any action or proceeding arising out of or relating
to this Agreement, the Notes or any other Loan Document.  Borrower,
Administrative Agent, and each Bank irrevocably agree that all claims in
respect of such action or proceeding may be heard and determined in such
New York State or United States Federal court.  Borrower, Administrative
Agent, and each Bank irrevocably consent to the service of any and all
process in any such action or proceeding by the mailing of copies of such
process to Borrower, Administrative Agent or each Bank, as the case may be,
at the addresses specified herein.  Borrower, Administrative Agent and each
Bank agree that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Borrower, Administrative
Agent and each Bank further waive any objection to venue in the State of
New York and any objection to an action or proceeding in the State of New
York on the basis of forum non conveniens.  Borrower, Administrative Agent
and each Bank agree that any action or proceeding brought against Borrower,
Administrative Agent or any Bank, as the case may be, shall be brought only
in a New York State court sitting in New York City or a United States
Federal court sitting in New York City, to the extent permitted or not
expressly prohibited by applicable law.

            Nothing in this Section shall affect the right of Borrower,
Administrative Agent or any Bank to serve legal process in any other manner
permitted by law.

            To the extent that Borrower, Administrative Agent or any Bank
have or hereafter may acquire any immunity from jurisdiction of any court
or from any legal process (whether from service or notice, attachment prior
to judgment, attachment in aid of execution, execution or otherwise) with
respect to itself or its property, Borrower, Administrative Agent and each
Bank hereby irrevocably waive such immunity in respect of its obligations
under this Agreement, the Notes and any other Loan Document.

 53

            BORROWER, ADMINISTRATIVE AGENT AND EACH BANK WAIVE ANY RIGHT
EACH SUCH PARTY MAY HAVE TO JURY TRIAL IN CONNECTION WITH ANY SUIT, ACTION
OR PROCEEDING BROUGHT WITH RESPECT TO THIS AGREEMENT, THE NOTES OR THE
LOAN.  IN ADDITION, BORROWER HEREBY WAIVES, IN CONNECTION WITH ANY SUIT,
ACTION OR PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT OR THE BANKS WITH
RESPECT TO THE NOTES, ANY RIGHT BORROWER MAY HAVE TO (1) TO THE EXTENT
PERMITTED OR NOT EXPRESSLY PROHIBITED BY APPLICABLE LAW, INTERPOSE ANY
COUNTERCLAIM THEREIN (OTHER THAN A COUNTERCLAIM THAT IF NOT BROUGHT IN THE
SUIT, ACTION OR PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT OR THE BANKS
COULD NOT BE BROUGHT IN A SEPARATE SUIT, ACTION OR PROCEEDING OR WOULD BE
SUBJECT TO DISMISSAL OR SIMILAR DISPOSITION FOR FAILURE TO HAVE BEEN
ASSERTED IN SUCH SUIT, ACTION OR PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT
OR THE BANKS) OR (2) TO THE EXTENT PERMITTED OR NOT EXPRESSLY PROHIBITED BY
APPLICABLE LAW, HAVE THE SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT,
ACTION OR PROCEEDING.  NOTHING HEREIN CONTAINED SHALL PREVENT OR PROHIBIT
BORROWER FROM INSTITUTING OR MAINTAINING A SEPARATE ACTION AGAINST
ADMINISTRATIVE AGENT OR THE BANKS WITH RESPECT TO ANY ASSERTED CLAIM.

 54

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

                              VORNADO REALTY TRUST, a
                                Maryland real estate
                                investment trust

                              By: _____________________________
                                  Name:
                                  Title:

                              Address for Notices:

                              Park 80 West
                              Plaza II
                              Saddle Brook, New Jersey 07663

                              Attention:  Steven Roth, Chairman
                                                 and
                                    Joseph Macnow, Vice
                                    President and Chief
                                    Financial Officer 

                              Telephone:  (201) 587-1000
                              Telecopy:   (201) 587-0600

                              with copies to:

                              Sullivan & Cromwell
                              125 Broad Street
                              New York, New York 10004 

                              Attention:  Patricia A. Ceruzzi
                                                  and
                                          Janet Goldzahler

                              Telephone:  (212) 558-4000
                              Telecopy:   (212) 558-3588

 55

                              UNION BANK OF SWITZERLAND
                              (New York Branch)
                              (as Bank and Administrative Agent)

                              By:                              
                                 Name:
                                 Title:

                              By:______________________________
                                 Name:
                                 Title:

                              Address for Notices and Applicable 
                              Lending Office for Base Rate Loan and
                              LIBOR Loan:

                              299 Park Avenue
                              38th Floor
                              New York, New York 10171-0026

                              Attention:  Albert Rabil, III 
                                          and Mara Martez

                              Telephone:  (212) 821-3872
                              Telecopy:   (212) 821-3943

                              with copies to:

                              Dewey Ballantine
                              1301 Avenue of the Americas
                              New York, New York 10019

                              Attention:  George C. Weiss

                              Telephone:  (212) 259-7320
                              Telecopy:   (212) 259-6333

 

                                 EXHIBIT A

                            AUTHORIZATION LETTER

                                    February ___, 1995

Union Bank of Switzerland
  (New York Branch)
299 Park Avenue
New York, New York 10171

            Re:   Revolving Loan Agreement dated as of February ____, 1995
                  (the "Loan Agreement"; capitalized terms not otherwise
                  defined herein shall have the meanings ascribed to such
                  terms in the Loan Agreement) among us, as Borrower, the
                  Banks named therein, and you, as Administrative Agent for
                  said Banks                                               

Gentlemen:

            In connection with the captioned Loan Agreement, we hereby
designate any of the following persons to give to you instructions,
including notices required pursuant to the Agreement, orally, by telephone
or teleprocess, or in writing:

                  Steven Roth
                  Joseph Macnow
                  Clifford Broser
                  Ross Morrison

            Instructions may be honored on the oral, telephonic,
teleprocess or written instructions of anyone purporting to be any one of
the above designated persons even if the instructions are for the benefit
of the person delivering them.  We will furnish you with confirmation of
each such instruction either by telex (whether tested or untested) or in
writing signed by any person designated above (including any telecopy which
appears to bear the signature of any person designated above) on the same
day that the instruction is provided to you but your responsibility with
respect to any instruction shall not be affected by your failure to receive
such confirmation or by its contents.

 2

            Without limiting the foregoing, we hereby unconditionally
authorize any one of the above-designated persons to execute and submit
requests for advances of proceeds of the Loans (including the Initial
Advance) and notices of Elections, Conversions and Continuations to you
under the Loan Agreement with the identical force and effect in all
respects as if executed and submitted by us.

            You shall be fully protected in, and shall incur no liability
to us for, acting upon any instructions which you in good faith believe to
have been given by any person designated above, and in no event shall you
be liable for special, consequential or punitive damages.  In addition, we
agree to hold you and your agents harmless from any and all liability, loss
and expense arising directly or indirectly out of instructions that we
provide to you in connection with the Loan Agreement except for liability,
loss or expense occasioned by the gross negligence or willful misconduct of
you or your agents.

            Upon notice to us, you may, at your option, refuse to execute
any instruction, or part thereof, without incurring any responsibility for
any loss, liability or expense arising out of such refusal if you in good
faith believe that the person delivering the instruction is not one of the
persons designated above or if the instruction is not accompanied by an
authentication method that we have agreed to in writing.

            We will promptly notify you in writing of any change in the
persons designated above and, until you have actually received such written
notice and have had a reasonable opportunity to act upon it, you are
authorized to act upon instructions, even though the person delivering them
may no longer be authorized.

                                    Very truly yours,

                                    VORNADO REALTY TRUST,
                                      a Maryland real estate
                                      investment trust

                                    By______________________________
                                                           , its
                                          authorized signatory

 

                                 EXHIBIT B

                                    NOTE

$___________                                             New York, New York
                                                         __________, 199   

            For value received, Vornado Realty Trust, a Maryland real
estate investment trust ("Borrower"), hereby promises to pay to the order
of ___________ or its successors or assigns (collectively, the "Bank"), at
the principal office of Union Bank of Switzerland (New York Branch) located
at 299 Park Avenue, New York, New York 10171 (the "Administrative Agent")
for the account of the Applicable Lending Office at the Bank, the principal
sum of ________ Dollars ($____________), or if less, the amount loaned by
the Bank to Borrower pursuant to the Loan Agreement (as defined below) and
actually outstanding, in lawful money of the United States and in
immediately available funds, in accordance with the terms set forth in the
Loan Agreement.  Borrower also promises to pay interest on the unpaid
principal balance hereof, for the period such balance is outstanding, in
like money, at said office for the account of said Applicable Lending
Office, at the time and at a rate per annum as provided in the Loan
Agreement.  Any amount of principal hereof which is not paid when due,
whether at stated maturity, by acceleration, or otherwise, shall bear
interest from the date when due until said principal amount is paid in
full, payable on demand, at the rate set forth in the Loan Agreement.

            The date and amount of each advance of the Loan made by the
Bank to Borrower under the Loan Agreement referred to below, and each
payment of the Loan, shall be recorded by the Bank on its books and, prior
to any transfer of this Note (or, at the discretion of the Bank, at any
other time), endorsed by the Bank on the schedule attached hereto and any
continuation thereof.

            This Note is one of the Notes referred to in the Revolving Loan
Agreement dated as of February 27, 1995 (as the same may be amended from
time to time, the "Loan Agreement") among Borrower, the Banks named therein
(including the Bank) and Administrative Agent, as administrative agent for
the Banks.  All of the terms, conditions and provisions of the Loan
Agreement are hereby incorporated by reference.  All capitalized terms used
herein and not defined herein shall have the meanings given to them in the
Loan Agreement.

 2

            The Loan Agreement contains, among other things, provisions for
the prepayment of and acceleration of this Note upon the happening of
certain stated events.

            No recourse shall be had under this Note against the VRT
Principals except as and to the extent set forth in Section 11.02 of the
Loan Agreement.

            All parties to this Note, whether principal, surety, guarantor
or endorser, hereby waive presentment for payment, demand, protest, notice
of protest and notice of dishonor. 

            This Note shall be governed by the laws of the State of New
York, provided that, as to the maximum lawful rate of interest which may be
charged or collected, if the laws applicable to the Bank permit it to
charge or collect a higher rate than the laws of the State of New York,
then such law applicable to the Bank shall apply to the Bank under this
Note. 

                                    VORNADO REALTY TRUST,
                                      a Maryland real estate
                                      investment trust

                                    By____________________________
                                          an authorized signatory

 

                                                      
              Amount of          Amount of         Balance
  Date         Advance            Payment        Outstanding      Notation By

 

                                 EXHIBIT C

                        LIST OF MATERIAL AFFILIATES

  

                                 EXHIBIT D

                            SOLVENCY CERTIFICATE

            The __________ executing this certificate is the
_______________ of Vornado Realty Trust, a Maryland real estate investment
trust ("Borrower"), and said ___________ is familiar with its properties,
assets and businesses, and is duly authorized to execute this certificate
on behalf of Borrower pursuant to Section 4.01(7) of the Revolving Loan
Agreement dated February ___, 1995 (the "Loan Agreement") among Borrower,
the banks party thereto (each a "Bank" and collectively, the "Banks") and
Union Bank of Switzerland (New York Branch), as agent for the Banks (in
such capacity, together with its successors in such capacity, the "Agent"). 
In executing this Certificate, such ________ is acting solely in [his]
[her] capacity as the _________  of ________, and not in [his] [her]
individual capacity.  Unless otherwise defined herein, terms defined in the
Loan Agreement are used herein as therein defined.

            The undersigned further certifies that [he] [she] has carefully
reviewed the Loan Agreement and the other Loan Documents and the contents
of this Certificate and, in connection herewith, has made such
investigation and inquiries as [he] [she] deems necessary and prudent
therefor.  The undersigned further certifies that the financial information
and assumptions which underlie and form the basis for the representations
made in this Certificate were reasonable when made and were made in good
faith and continue to be reasonable as of the date hereof.

            The undersigned understands that the Agent is relying on the
truth and accuracy of this Certificate in connection with the transactions
contemplated by the Loan Agreement.

            The undersigned certifies that Borrower is Solvent.

            IN WITNESS WHEREOF, the undersigned has executed this
Certificate on February ___, 1995.

                                    ______________________________

 

                                 EXHIBIT E

                    ASSIGNMENT AND ASSUMPTION AGREEMENT

            ASSIGNMENT AND ASSUMPTION AGREEMENT dated as of __________,
199_, among [insert name of assigning Bank] ("Assignor"), [insert name of
Assignee] ("Assignee"), Vornado Realty Trust, a Maryland real estate
investment trust ("Borrower") and Union Bank of Switzerland (New York
Branch), as administrative agent for the Banks referred to below (in such
capacity, together with its successors in such capacity, the
"Administrative Agent").

                           Preliminary Statement 

            1.  This Assignment and Assumption Agreement (this "Agreement")
relates to the Revolving Loan Agreement (as the same may be amended from
time to time, the "Loan Agreement") dated February ___, 1995 among
Borrower, the banks party thereto (each a "Bank" and, collectively, the
"Banks") and the Administrative Agent.  All capitalized terms not otherwise
defined herein shall have the respective meanings set forth in the Loan
Agreement.  

            2.  Subject to the terms and conditions set forth in the Loan
Agreement, Assignor has made a Loan Commitment to Borrower in an aggregate
principal amount of ___________ Dollars ($____________) ("Assignor's Loan
Commitment").

            3.  The aggregate outstanding principal amount of Assignor's
Loan made pursuant to Assignor's Loan Commitment at commencement of
business on the date hereof is __________ Dollars ($__________).

            4.  Assignor desires to assign to Assignee (a) all of the
rights of Assignor under the Loan Agreement in respect of a portion of its
Loan and Loan Commitment thereunder in an amount equal to __________
($__________) (the "Assigned Loan and Commitment"); and Assignee desires to
accept assignment of such rights and assume the corresponding obligations
from Assignor on such terms.

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

            SECTION 1.  Assignment.  Assignor hereby assigns and sells to
Assignee all of the rights of Assignor under the Loan Agreement in and to
the Assigned Loan and Commitment, and Assignee hereby accepts such
assignment from Assignor and assumes all of the obligations of Assignor
under the Loan Agreement with 

 2

respect to the Assigned Loan and Commitment.  Upon the execution and
delivery hereof by Assignor, Assignee, Borrower and the Administrative
Agent and the payment of the amount specified in Section 2 hereof required
to be paid on the date hereof, (1) Assignee shall, as of the commencement
of business on the date hereof, succeed to the rights and obligations of a
Bank under the Loan Agreement with a Loan and a Loan Commitment in an
amount equal to the Assigned Loan and Commitment, and (2) the Loan and Loan
Commitment of Assignor shall, as of the commencement of business on the
date hereof, be reduced correspondingly and Assignor released from its
obligations under the Loan Agreement to the extent such obligations have
been assumed by Assignee.  The assignment provided for herein shall be
without recourse to Assignor.

            SECTION 2.  Payments.  As consideration for the assignment and
sale contemplated in Section 1 hereof, Assignee shall pay to Assignor on
the date hereof in immediately available funds an amount equal to
__________ ($___________) [insert the amount of that portion of Assignor's
Loan being assigned].  It is understood that any fees paid to Assignor
under the Loan Agreement are for the account of Assignor.  Each of Assignor
and Assignee hereby agrees that if it receives any amount under the Loan
Agreement which is for the account of the other party hereto, it shall
receive the same for the account of such other party to the extent of such
other party's interest therein and shall promptly pay the same to such
other party.

            SECTION 3.  [Consent of Borrower and UBS and Acknowledgment by
the Administrative Agent;] Execution and Delivery of Note. [This Agreement
is conditioned upon the consent of Borrower and UBS and acknowledgment by
the Administrative Agent pursuant to Section 12.05 of the Loan Agreement. 
The execution of this Agreement by Borrower and UBS and the Administrative
Agent is evidence of this consent and acknowledgment, respectively.  Only
necessary if Assignee is not a majority owned subsidiary of a Bank or of
the Parent of a Bank]  Pursuant to Section 12.05 of the Loan Agreement,
Borrower has agreed to execute and deliver Notes payable to the respective
orders of Assignee and Assignor to evidence the assignment and assumption
provided for herein.

            SECTION 4.  Non-Reliance on Assignor.  Assignor makes no
representation or warranty in connection with, and shall have no
responsibility with respect to, the solvency, financial condition, or
statements of Borrower or any other party to any Loan Document, or the
validity and enforceability of the obligations of Borrower or any other
party to a Loan Document in respect of the Loan Agreement or any other Loan
Document.  Assignee acknowledges that it has, independently and without
reliance on Assignor, and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement and will continue to be 

 3

responsible for making its own independent appraisal of the business,
affairs and financial condition of Borrower and the other parties to the
Loan Documents.

            SECTION 5.  Governing Law.  This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

            SECTION 6.  Counterparts.  This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same
instrument.

            SECTION 7.  Certain Representations and Agreements by Assignee. 
Reference is made to Section 10.13 of the Loan Agreement.  Assignee hereby
represents that it is entitled to receive any payments to be made to it
under the Loan Agreement or hereunder without the withholding of any tax
and agrees to furnish the evidence of such exemption as specified therein
and otherwise to comply with the provisions of said Section 10.13.

 4

            IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed and delivered by their duly authorized officers as of the date
first above written.

                                    [NAME OF ASSIGNOR]

                                    By____________________________
                                      Name:
                                      Title:

                                    [NAME OF ASSIGNEE]

                                    By____________________________
                                      Name:
                                      Title:

                                    Applicable Lending Office:

                                    Address for Notices:

                                    [Assignee]
                                    [Address]
                                    Attention:  _______________
                                    Telephone:  (___) ________
                                    Telecopy:   (___) ________

                                    VORNADO REALTY TRUST,
                                      a Maryland real estate
                                      investment trust

                                    By____________________________
                                      an authorized signatory

                                    UNION BANK OF SWITZERLAND
                                      (New York Branch)
                                    (as Bank and Administrative Agent)

                                    By____________________________
                                      Name:
                                      Title:

                                    By____________________________
                                      Name:
                                      Title:

 

                                 EXHIBIT F

     PROPERTIES TO BE NEGATIVELY PLEDGED TO UBS BY VORNADO REALTY TRUST

Shopping Centers:

1.    Hackensack Avenue, Hackensack, NJ
2.    East 14th Street, New York, NY
3.    Route 22 and Watchung Avenue, Watchung, NJ
4.    Passaic Avenue, Kearny, NJ
5.    Route 2 and Broadway, Menands, NY
6.    Belair Road, Baltimore, MD
7.    Kennedy Blvd., North Bergen, NJ
8.    Boston Road and Health Avenue, Springfield, MA
9.    Wilson Blvd. and Downsville Pike, Hagerstown, MD
10.   Market Street, Philadelphia, PA
11.   Easton Avenue and Nottingham Road, Bethlehem, PA
12.   Bloomfield Avenue and Francis Place, Montclair, NJ

Warehouse:

13.   719 Route 18 and Tices Corner Road, E. Brunswick, NJ

Leased Properties:

14.   Milford Place and Medway Street, Milford, MA
15.   I-81 and Southbay Road, N. Syracuse, NY
16.   St. George Avenue and Maple Avenue, Rahway, NJ

 i

                             TABLE OF CONTENTS

                                                                       Page

ARTICLE I.               DEFINITIONS; ETC.  . . . . . . . . . . . . . .   1
      Section  1.01  Definitions  . . . . . . . . . . . . . . . . . . .   1
      Section  1.02  Accounting Terms . . . . . . . . . . . . . . . . .  13
      Section  1.03  Computation of Time Periods  . . . . . . . . . . .  13
      Section  1.04  Rules of Construction  . . . . . . . . . . . . . .  13

ARTICLE II.              THE LOANS  . . . . . . . . . . . . . . . . . .  13
      Section  2.01  The Loans  . . . . . . . . . . . . . . . . . . . .  13
      Section  2.02  Purpose  . . . . . . . . . . . . . . . . . . . . .  14
      Section  2.03  Advances, Generally  . . . . . . . . . . . . . . .  15
      Section  2.04  Procedures for Advances  . . . . . . . . . . . . .  15
      Section  2.05  Interest Periods; Renewals . . . . . . . . . . . .  15
      Section  2.06  Interest . . . . . . . . . . . . . . . . . . . . .  16
      Section  2.07  Fees . . . . . . . . . . . . . . . . . . . . . . .  16
      Section  2.08  Notes  . . . . . . . . . . . . . . . . . . . . . .  17
      Section  2.09  Prepayments  . . . . . . . . . . . . . . . . . . .  17
      Section  2.10  Changes of Commitments . . . . . . . . . . . . . .  17
      Section  2.11  Method of Payment  . . . . . . . . . . . . . . . .  18
      Section  2.12  Elections, Conversions or Continuation of Loans  .  18
      Section  2.13  Minimum Amounts  . . . . . . . . . . . . . . . . .  18
      Section  2.14  Certain Notices Regarding Elections, Conversions
                      and Continuations of Loans  . . . . . . . . . . .  19

ARTICLE III.             YIELD PROTECTION; ILLEGALITY; ETC.   . . . . .  20
      Section  3.01  Additional Costs . . . . . . . . . . . . . . . . .  20
      Section  3.02  Limitation on Types of Loans . . . . . . . . . . .  21
      Section  3.03  Illegality . . . . . . . . . . . . . . . . . . . .  21
      Section  3.04  Treatment of Affected Loans  . . . . . . . . . . .  22
      Section  3.05  Certain Compensation . . . . . . . . . . . . . . .  22
      Section  3.06  Capital Adequacy . . . . . . . . . . . . . . . . .  23
      Section  3.07  Substitution of Banks  . . . . . . . . . . . . . .  23

ARTICLE IV.              CONDITIONS PRECEDENT   . . . . . . . . . . . .  25
      Section  4.01  Conditions Precedent to the Initial Advance  . . .  25
      Section  4.02  Conditions Precedent to Advances After the
                      Initial Advance . . . . . . . . . . . . . . . . .  26
      Section  4.03  Deemed Representations . . . . . . . . . . . . . .  27

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                                                                       Page

ARTICLE V.               REPRESENTATIONS AND WARRANTIES . . . . . . . .  27
      Section  5.01  Due Organization . . . . . . . . . . . . . . . . .  27
      Section  5.02  Power and Authority; No Conflicts; Compliance
                      With Laws . . . . . . . . . . . . . . . . . . . .  27
      Section  5.03  Legally Enforceable Agreements . . . . . . . . . .  28
      Section  5.04  Litigation . . . . . . . . . . . . . . . . . . . .  28
      Section  5.05  Good Title to Properties . . . . . . . . . . . . .  28
      Section  5.06  Taxes  . . . . . . . . . . . . . . . . . . . . . .  28
      Section  5.07  ERISA  . . . . . . . . . . . . . . . . . . . . . .  29
      Section  5.08  No Default on Outstanding Judgments or Orders  . .  29
      Section  5.09  No Defaults on Other Agreements  . . . . . . . . .  29
      Section  5.10  Government Regulation  . . . . . . . . . . . . . .  29
      Section  5.11  Environmental Protection . . . . . . . . . . . . .  30
      Section  5.12  Solvency . . . . . . . . . . . . . . . . . . . . .  30
      Section  5.13  Financial Statements . . . . . . . . . . . . . . .  30
      Section  5.14  Valid Existence of Affiliates  . . . . . . . . . .  30
      Section  5.15  Insurance  . . . . . . . . . . . . . . . . . . . .  30
      Section  5.16  Accuracy of Information; Full Disclosure . . . . .  31

ARTICLE VI.              AFFIRMATIVE COVENANTS  . . . . . . . . . . . .  31
      Section  6.01  Maintenance of Existence . . . . . . . . . . . . .  31
      Section  6.02  Maintenance of Records . . . . . . . . . . . . . .  31
      Section  6.03  Maintenance of Insurance . . . . . . . . . . . . .  31
      Section  6.04  Compliance with Laws; Payment of Taxes . . . . . .  31
      Section  6.05  Right of Inspection  . . . . . . . . . . . . . . .  32
      Section  6.06  Compliance With Environmental Laws . . . . . . . .  32
      Section  6.07  Payment of Costs . . . . . . . . . . . . . . . . .  32
      Section  6.08  Maintenance of Properties  . . . . . . . . . . . .  32
      Section  6.09  Reporting and Miscellaneous Document
                      Requirements  . . . . . . . . . . . . . . . . . .  32
      Section  6.10  Shopping Center EBITDA . . . . . . . . . . . . . .  35
      Section  6.11  Management . . . . . . . . . . . . . . . . . . . .  35

ARTICLE VII.             NEGATIVE COVENANTS   . . . . . . . . . . . . .  35
      Section  7.01  Mergers Etc. . . . . . . . . . . . . . . . . . . .  35
      Section  7.02  Investments  . . . . . . . . . . . . . . . . . . .  35
      Section  7.03  Sale of Assets . . . . . . . . . . . . . . . . . .  36
      Section  7.04  Encumbrance of Certain Assets  . . . . . . . . . .  36

 iii

                                                                       Page

ARTICLE VIII.            FINANCIAL COVENANTS  . . . . . . . . . . . . .  36
      Section  8.01  Equity Value . . . . . . . . . . . . . . . . . . .  36
      Section  8.02  Relationship of Total Outstanding Indebtedness
                      to Equity Value . . . . . . . . . . . . . . . . .  36
      Section  8.03  Relationship of Secured Indebtedness to Equity
                      Value . . . . . . . . . . . . . . . . . . . . . .  36
      Section  8.04  Relationship of Combined EBITDA to Interest
                      Expense . . . . . . . . . . . . . . . . . . . . .  36
      Section  8.05  Relationship of Combined EBITDA to Total
                      Outstanding Indebtedness  . . . . . . . . . . . .  36
      Section  8.06  Funds From Operations  . . . . . . . . . . . . . .  37
      Section  8.07  Unsecured Debt Yield . . . . . . . . . . . . . . .  37
      Section  8.08  Relationship of Unencumbered Combined EBITDA to
                      Interest Expense on Unsecured Indebtedness  . . .  37

ARTICLE IX.              EVENTS OF DEFAULT  . . . . . . . . . . . . . .  37
      Section  9.01  Events of Default  . . . . . . . . . . . . . . . .  37
      Section  9.02  Remedies . . . . . . . . . . . . . . . . . . . . .  39

ARTICLE X.               ADMINISTRATIVE AGENT; RELATIONS
                         AMONG BANKS  . . . . . . . . . . . . . . . . .  39
      Section 10.01  Appointment, Powers and Immunities of
                      Administrative Agent  . . . . . . . . . . . . . .  39
      Section 10.02  Reliance by Administrative Agent . . . . . . . . .  40
      Section 10.03  Defaults . . . . . . . . . . . . . . . . . . . . .  41
      Section 10.04  Rights of Administrative Agent as a Bank . . . . .  41
      Section 10.05  Indemnification of Administrative Agent  . . . . .  41
      Section 10.06  Non-Reliance on Administrative Agent and Other
                      Banks . . . . . . . . . . . . . . . . . . . . . .  42
      Section 10.07  Failure of Administrative Agent to Act . . . . . .  42
      Section 10.08  Resignation or Removal of Administrative Agent . .  42
      Section 10.09  Amendments Concerning Agency Function  . . . . . .  43
      Section 10.10  Liability of Administrative Agent  . . . . . . . .  43
      Section 10.11  Transfer of Agency Function  . . . . . . . . . . .  43
      Section 10.12  Non-Receipt of Funds by Administrative Agent . . .  43
      Section 10.13  Withholding Taxes  . . . . . . . . . . . . . . . .  44
      Section 10.14  Minimum Commitment by UBS  . . . . . . . . . . . .  44
      Section 10.15  Pro Rata Treatment . . . . . . . . . . . . . . . .  45
      Section 10.16  Sharing of Payments Among Banks  . . . . . . . . .  45
      Section 10.17  Possession of Documents. . . . . . . . . . . . . .  45

ARTICLE XI.              NATURE OF OBLIGATIONS  . . . . . . . . . . . .  45
      Section 11.01  Absolute and Unconditional Obligations . . . . . .  45
      Section 11.02  Non-Recourse to VRT Principals . . . . . . . . . .  46

 iv

                                                                       Page

ARTICLE XII.             MISCELLANEOUS  . . . . . . . . . . . . . . . .  47
      Section 12.01  Binding Effect of Request for Advance  . . . . . .  47
      Section 12.02  Amendments and Waivers . . . . . . . . . . . . . .  47
      Section 12.03  Usury  . . . . . . . . . . . . . . . . . . . . . .  48
      Section 12.04  Expenses; Indemnification  . . . . . . . . . . . .  48
      Section 12.05  Assignment; Participation  . . . . . . . . . . . .  48
      Section 12.06  Documentation Satisfactory . . . . . . . . . . . .  50
      Section 12.07  Notices  . . . . . . . . . . . . . . . . . . . . .  50
      Section 12.08  Setoff . . . . . . . . . . . . . . . . . . . . . .  50
      Section 12.09  Table of Contents; Headings  . . . . . . . . . . .  51
      Section 12.10  Severability . . . . . . . . . . . . . . . . . . .  51
      Section 12.11  Counterparts . . . . . . . . . . . . . . . . . . .  51
      Section 12.12  Integration  . . . . . . . . . . . . . . . . . . .  51
      Section 12.13  Governing Law  . . . . . . . . . . . . . . . . . .  51
      Section 12.14  Waivers  . . . . . . . . . . . . . . . . . . . . .  51
      Section 12.15  Jurisdiction; Immunities . . . . . . . . . . . . .  52

EXHIBIT A   -  Authorization Letter

EXHIBIT B   -  Note

EXHIBIT C   -  List of Affiliates

EXHIBIT D   -  Solvency Certificate

EXHIBIT E   -  Assignment and Assumption Agreement

EXHIBIT F   -  Negative Pledge Properties