MILLS CORP
EXHIBIT 10.1
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<TYPE>EX-10.1
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<FILENAME>a2121865zex-10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT&nbsp;10.1  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>PURCHASE AGREEMENT  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> between  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> THE MILLS CORPORATION,  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> CLARION CRA SECURITIES, L.P.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> and  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> ING CLARION REAL ESTATE INCOME FUND  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> dated as of  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> November&nbsp;4, 2003  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="kq1997_purchase_agreement"> </A>
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<BR>    PURCHASE AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS PURCHASE AGREEMENT (this "</FONT><FONT SIZE=2><B>Agreement</B></FONT><FONT SIZE=2>") is entered into as of November&nbsp;4, 2003 by and among The Mills
Corporation, a Delaware corporation (the "</FONT><FONT SIZE=2><B>Company</B></FONT><FONT SIZE=2>"), ING Clarion Real Estate Income Fund, a closed-end management investment company
organized as a Delaware statutory trust ("</FONT><FONT SIZE=2><B>Clarion Fund</B></FONT><FONT SIZE=2>"), and Clarion CRA Securities, L.P., a Delaware limited partnership
("</FONT><FONT SIZE=2><B>Clarion</B></FONT><FONT SIZE=2>") and advisor to Clarion Fund. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
as of the date hereof, the Company has outstanding 8,160,000 shares of its 8.75% Series&nbsp;E Cumulative Redeemable Preferred Stock, par value $0.01 per share
("</FONT><FONT SIZE=2><B>Series&nbsp;E Preferred Stock</B></FONT><FONT SIZE=2>"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company desires to sell and issue to Clarion Fund, and Clarion Fund desires to purchase from the Company, 385,000 shares of Series&nbsp;E Preferred Stock. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows: </FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURCHASE; CLOSING  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B> 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Series&nbsp;E Preferred Stock.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions hereof, Clarion Fund hereby agrees to purchase from the Company, and the Company agrees to sell to Clarion Fund (the
"</FONT><FONT SIZE=2><B>Offering</B></FONT><FONT SIZE=2>"), 385,000 shares of Series&nbsp;E Preferred Stock (the "</FONT><FONT SIZE=2><B>Shares</B></FONT><FONT SIZE=2>"). The per share purchase
price for the Shares will be $26.237 and the aggregate purchase price for the Shares shall be equal to the per share price multiplied by the number of Shares, or $10,101,245.00 (the
"</FONT><FONT SIZE=2><B>Purchase Price</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2><B> 1.2.&nbsp;&nbsp;&nbsp;&nbsp;Closing and Payment.  </B></FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions hereof, the payment for, and the delivery of, the Shares (the "</FONT><FONT SIZE=2><B>Closing</B></FONT><FONT SIZE=2>") shall be
made at the Company, or at such other place as shall be agreed upon by the Company and Clarion Fund, at 11:00&nbsp;A.M.
(Eastern time) on November&nbsp;5, 2003, or such other time not later than ten business days after such date as shall be agreed upon by the Company and Clarion Fund. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;Payment
of the Purchase Price shall be made by Clarion Fund to the Company by wire transfer of immediately available funds to a bank account designated by the Company,
against delivery to Clarion Fund of the Shares to be purchased pursuant to the Offering. </FONT></P>

</UL>
</UL>
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<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF THE COMPANY  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby represents and warrants to Clarion and Clarion Fund as follows: </FONT></P>

<UL>

<P><FONT SIZE=2><B> 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Registration of the Shares  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Shares to be issued in connection with the Offering have been registered with the Securities and Exchange Commission (the
"</FONT><FONT SIZE=2><B>Commission</B></FONT><FONT SIZE=2>") pursuant to a registration statement on Form&nbsp;S-3 (the "</FONT><FONT SIZE=2><B>Registration
Statement</B></FONT><FONT SIZE=2>") filed by the Company with the Commission, which Registration Statement was declared effective by the Commission, and, to the Company's knowledge, no stop order
suspending the effectiveness of the Registration Statement or any part thereof has been issued and no proceedings for that purpose have been initiated or threatened by the Commission. </FONT></P>


<P><FONT SIZE=2><B> 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Organization  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite corporate power and authority
to own, operate, lease and encumber its properties and carry on its business as described in the Prospectus (as hereinafter defined) and to enter into this Agreement and to perform its obligations
hereunder </FONT></P>

<P><FONT SIZE=2><B> 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Due Authorization  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement has been duly authorized, executed and delivered by the Company and, assuming due authorization, execution and delivery by each of Clarion and Clarion Fund, is enforceable
against the Company in accordance with its terms except as (i)&nbsp;the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' rights generally or (ii)&nbsp;the availability of equitable remedies may be limited by equitable principles of general applicability. The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated herein have been duly authorized by all necessary actions on behalf of the Company. </FONT></P>

<P><FONT SIZE=2><B> 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Authorization of Shares  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Shares have been duly authorized by the Company for issuance and sale pursuant to this Agreement. Such Shares, when issued and delivered by the Company pursuant to this Agreement
against payment of the Purchase Price, will be validly issued, fully paid and non-assessable, and will not be subject to preemptive or other similar rights arising by operation of law,
under the certificate of incorporation and bylaws of the Company or under any agreement to which the Company is a party, or otherwise. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<UL>

<P><FONT SIZE=2><B> 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Absence of Defaults  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is not in any violation of its certificate of incorporation or by laws or in default in the performance or observance of any material obligation, agreement, covenant or
condition contained in any material contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company is a party or by which it
may be bound, except for such defaults that would not have a material adverse effect on the financial condition or results of operations of the Company and its subsidiaries, taken as a whole
(collectively, "</FONT><FONT SIZE=2><B>Material Adverse Effect</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2><B> 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Description of the Shares  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Shares being sold pursuant to this Agreement conform in all material respects to the statements relating thereto contained in the prospectus supplement, dated November&nbsp;4,
2003, to the prospectus, dated October&nbsp;2, 2002 (collectively, the "</FONT><FONT SIZE=2><B>Prospectus</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2><B> 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Litigation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no action, suit, proceeding, inquiry or investigation before or by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the
Company, threatened against or affecting the Company that is required to be disclosed in the Registration Statement and the Prospectus (other than as stated therein), or that would result in a
Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2><B> 2.8.&nbsp;&nbsp;&nbsp;&nbsp;REIT Status  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing
with its taxable year ended December&nbsp;31, 1994, the Company was organized and has operated in conformity with the requirements for qualification and taxation as a real
estate investment trust under the Internal Revenue Code of 1986, as amended (the "</FONT><FONT SIZE=2><B>Code</B></FONT><FONT SIZE=2>"), and its proposed method of operation will enable it to
continue to meet the requirements for qualification and taxation as a real estate investment trust under the Code for each of its subsequent taxable years, and no actions have been taken (or not taken
that are required to be taken) that would cause such qualification as a real estate investment trust to be lost. </FONT></P>

<P><FONT SIZE=2><B> 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Brokers or Finders  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than the Placement Agent Fee (as defined herein), the Company is not liable, contingently or otherwise, for the payment of brokerage or finders' fees or agents' commissions or
other similar payments in connection with this Agreement or the transactions contemplated hereby. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF CLARION AND CLARION FUND  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Clarion and Clarion Fund, severally and jointly, hereby represents and warrants to the Company as follows: </FONT></P>

<UL>

<P><FONT SIZE=2><B> 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Ownership of Clarion and Clarion Fund  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clarion
is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware. Clarion has all requisite partnership power and
partnership authority to enter into this Agreement and to perform its obligations hereunder. Clarion Fund is a trust duly organized, validly existing and in good standing under the laws of the State
of Delaware. Clarion Fund has all requisite trust power and trust authority to enter into this Agreement and to perform its obligations hereunder. </FONT></P>

<P><FONT SIZE=2><B> 3.2.&nbsp;&nbsp;&nbsp;&nbsp;Due Authorization  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement has been duly authorized, executed and delivered on behalf of each of Clarion and Clarion Fund and, assuming due authorization, execution and delivery by the Company, is
enforceable against each of Clarion and Clarion Fund in accordance with its terms except as (i)&nbsp;the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors' rights generally or (ii)&nbsp;the availability of equitable remedies may be limited by equitable principles of general applicability. The execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated herein have been duly authorized by all necessary actions on behalf of each of Clarion and Clarion Fund. </FONT></P>

<P><FONT SIZE=2><B> 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Ownership and Transfer Limitations  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of Clarion and Clarion Fund has received complete copies of the Company's Certificate of Incorporation ("</FONT><FONT SIZE=2><B>Certificate of
Incorporation</B></FONT><FONT SIZE=2>"), understands the restrictions on ownership and transfer of ownership in the Company
included in Article&nbsp;12 of the Certificate of Incorporation and as described in the Prospectus and the documents incorporated by reference therein, and shall comply with such restrictions
contained therein. </FONT></P>

<P><FONT SIZE=2><B> 3.4.&nbsp;&nbsp;&nbsp;&nbsp;Absence of Default  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
performance of the obligations contained herein or contemplated hereby does not violate any material contract, indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or other agreement or instrument to which each of Clarion and Clarion Fund is a party or by which it may be bound, except for such violations that would not materially adversely affect the
ability of each of Clarion and Clarion Fund to perform its respective obligations hereunder or contemplated hereby. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2><B> 3.5.&nbsp;&nbsp;&nbsp;&nbsp;Source of Fund  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, Clarion Fund shall have available sufficient funds necessary to pay the Purchase Price and otherwise to satisfy its obligations hereunder. </FONT></P>

<P><FONT SIZE=2><B> 3.6.&nbsp;&nbsp;&nbsp;&nbsp;Brokers or Finders  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
agent, broker, investment banker or other firm or person, including any of the foregoing that is an affiliate of either of Clarion or Clarion Fund, is or will be entitled to any
broker's or finder's fee or any other commission or similar fee from either Clarion or Clarion Fund in connection with this Agreement or the transactions contemplated hereby for which the Company or
any of its subsidiaries will be responsible. </FONT></P>

</UL>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS TO CLOSING; POST-CLOSING OBLIGATION OF THE COMPANY  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B> 4.1.&nbsp;&nbsp;&nbsp;&nbsp;Conditions to Obligations of Clarion and Clarion Fund  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
obligations of Clarion and Clarion Fund to severally and jointly to purchase and pay for the Shares at the Closing are subject to satisfaction or waiver of each of the following
conditions precedent: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
representations and warranties of the Company contained herein shall have been true and correct in all respects on and as of the date hereof, and shall be true and
correct in all respects on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing (except for representations and
warranties that speak as of a specific date or time other than the date of the Closing (which need only be true and correct in all respects as of such date or time)), other than, in all such cases,
such failures to be true and/or correct as would not have a Material Adverse Effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;There
shall not be in effect any order, decree or injunction of a court or agency of competent jurisdiction that enjoins or prohibits consummation of the transactions
contemplated hereby and there shall be no pending actions that would have a material adverse effect on the ability of the Company to consummate the transactions contemplated hereby or to issue the
Shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;The
Company shall have delivered to Clarion Fund on the Closing Date copies of duly executed certificates representing the Shares being purchased pursuant to the
Offering (with original unit certificates to be delivered promptly following the Closing Date). </FONT></P>

</UL>

<P><FONT SIZE=2><B> 4.2.&nbsp;&nbsp;&nbsp;&nbsp;Conditions to Obligations of the Company  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
obligations of the Company to issue and sell the Shares at the Closing are subject to satisfaction or waiver of each of the following conditions precedent: </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
representations and warranties of each of Clarion and Clarion Fund contained herein shall have been true and correct in all respects on and as of the date hereof,
and shall be true and correct in all respects on and as of the Closing, with the same effect as though such representations and warranties had been made on and as of the date of the Closing (except
for representations and warranties that speak as of a specific date or time other than the date of the Closing (which need only be true and correct in all respects as of such date or time)), other
than, in all such cases,
such failures to be true and/or correct as would not materially adversely affect the ability of either Clarion or Clarion Fund to perform its obligations hereunder or contemplated hereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;There
shall not be in effect any order, decree or injunction of a court or agency of competent jurisdiction that enjoins or prohibits consummation of the transactions
contemplated hereby and there shall be no pending actions that would reasonably be expected to have a material adverse effect on the ability of either Clarion or Clarion Fund to consummate the
transactions contemplated hereby or to issue the Shares. </FONT></P>

</UL>

<P><FONT SIZE=2><B> 4.3.&nbsp;&nbsp;&nbsp;&nbsp;Post-Closing Obligation of the Company  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
ten (10)&nbsp;days from the Closing, the Company shall pay to Clarion an amount equal to $210,000 as a placement agent fee (the "</FONT><FONT SIZE=2><B>Placement Agent
Fee</B></FONT><FONT SIZE=2>"). Such payment shall be made by wire transfer of immediately available funds to a bank account maintained by or for the benefit of Clarion and as set forth on </FONT> <FONT
SIZE=2><B><U>Schedule&nbsp;4.3</U></B></FONT><FONT SIZE=2> hereto. </FONT></P>

</UL>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B> 5.1.&nbsp;&nbsp;&nbsp;&nbsp;Counterparts  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall be effective when one or more counterparts have been
signed by each party hereto and delivered to the other party. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original
executed counterparts for purposes of this Agreement, provided receipt of copies of such counterparts is confirmed. </FONT></P>


<P><FONT SIZE=2><B> 5.2.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA WITHOUT REFERENCE TO THE CHOICE OR CONFLICT OF LAW PRINCIPLES THEREOF. </FONT></P>

<P><FONT SIZE=2><B> 5.3.&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and there are no agreements, understandings, representations or
warranties between the parties other than those set forth or referred to herein. This Agreement is not intended to confer upon any person not a party hereto (and their successors and assigns) any
rights or remedies hereunder. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2><B> 5.4.&nbsp;&nbsp;&nbsp;&nbsp;Notices  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
notices and other communications hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented overnight delivery
service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to the appropriate address or number as set forth below. </FONT></P>

<UL>

<P><FONT SIZE=2>Notices
to the Company shall be addressed to: </FONT></P>

<UL>

<P><FONT SIZE=2>The
Mills Corporation<BR>
1300 Wilson Boulevard, Suite 400<BR>
Arlington, VA 22209<BR>
Attention: Thomas E. Frost, Executive Vice President and General Counsel<BR>
Telecopy Number: (703)&nbsp;526-5155 </FONT></P>

</UL>

<P><FONT SIZE=2><I>with a copy (which shall not constitute notice) to:  </I></FONT></P>

<UL>

<P><FONT SIZE=2>Hogan&nbsp;&amp;
Hartson L.L.P.<BR>
555 Thirteenth Street, N.W.<BR>
Washington, DC 20004-1109<BR>
Attention: Bruce W. Gilchrist, Esq.<BR>
Telecopy Number: (202)&nbsp;637-5910 </FONT></P>

</UL>

<P><FONT SIZE=2>Notices
to either of Clarion or Clarion Fund shall be addressed to: </FONT></P>

<UL>

<P><FONT SIZE=2>Clarion
CRA Securities, L.P.<BR>
259 North Radnor Chester Road<BR>
Suite 205<BR>
Radnor, PA 19087<BR>
Attention: Ms.&nbsp;Heather A. Trudel, Senior Vice President<BR>
Telecopy Number: (610)&nbsp;964-0410 </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B> 5.5.&nbsp;&nbsp;&nbsp;&nbsp;Headings  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
section and other headings contained in this Agreement are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2><B> 5.6.&nbsp;&nbsp;&nbsp;&nbsp;Amendments and Waivers  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may not be modified or amended except by an instrument or instruments in writing signed by both parties. No failure or delay by either party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof, or the exercise of any other right, power or
privilege hereunder. No waiver of any terms or conditions of this Agreement shall be deemed to be a waiver of any subsequent breach of any term or condition. All waivers must be in writing and signed
by both parties. </FONT></P>

<P><FONT SIZE=2><B> 5.7.&nbsp;&nbsp;&nbsp;&nbsp;Expenses  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in this Agreement, whether or not the Closing is consummated, all legal and other costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs and expenses. </FONT></P>

<P><FONT SIZE=2><B> 5.8.&nbsp;&nbsp;&nbsp;&nbsp;Severability  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
provision hereof that is invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, without affecting in any way the remaining provisions
hereof. </FONT></P>

<P><FONT SIZE=2><B> 5.9.&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties agree that, from time to time, whether before, at or after the Closing, each of them will execute and deliver such further instruments of conveyance and transfer and take
such other action as may be necessary, appropriate or desirable to carry out the purposes and intents hereof. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>[Signatures
on following page] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first above written. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><B>COMPANY:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>THE MILLS CORPORATION</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/S/ M. SCOTT DECAIN</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>M. Scott DeCain</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>Senior Vice President, Capital Markets</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><BR><FONT SIZE=2><B>CLARION:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B><BR>
CLARION CRA SECURITIES, L.P.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2><BR>
ING REI Holding&nbsp;Inc., its general partner</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2><BR>
/S/ PETER ZAPPULLA</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>Name:&nbsp;&nbsp;Peter Zappulla</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>Title:&nbsp;&nbsp;&nbsp;&nbsp;Secretary</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><BR><FONT SIZE=2><B>CLARION&nbsp;FUND:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B><BR>
ING CLARION REAL ESTATE INCOME FUND</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>/S/ PETER ZAPPULLA</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>Peter Zappulla</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="37%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="37%"><FONT SIZE=2>Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<BR>
<P><br><A NAME="03WDC1997_5">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_kq1997_1">PURCHASE AGREEMENT</A></FONT><BR>
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