BAKER & HOSTETLER LLP COUNSELLORS AT LAW 3200 National City Center 1900 East 9th Street Cleveland, Ohio 44114-3485 August 14, 1997 VIA MESSENGER William Warren, Esq. Forest City Enterprises, Inc. 10800 Brookpark Road Cleveland, Ohio 44130 Re: STOCK...

 

                             XXXXX & XXXXXXXXX LLP
                               COUNSELLORS AT LAW
                           0000 Xxxxxxxx Xxxx Xxxxxx
                              0000 Xxxx 0xx Xxxxxx
                           Xxxxxxxxx, Xxxx 00000-0000


                                                           August 14, 1997



VIA MESSENGER

Xxxxxxx Xxxxxx, Esq.
Forest City Enterprises, Inc.
00000 Xxxxxxxxx Xxxx
Xxxxxxxxx, Xxxx  00000

         Re:      STOCK PURCHASE AGREEMENT DATED MAY 7, 1997 BETWEEN
                  FOREST CITY ENTERPRISES, INC. AND THE MILLERS

Dear Xxxx:

         I have been  advised that the parties to the Stock  Purchase  Agreement
dated May 7, 1997 have  agreed  to adjust  the  interest  rate to 8% (based on a
360-day  year).  As attorney  for the Millers,  this letter is to confirm  their
agreement to this modification of the Stock Purchase Agreement.

                                            Sincerely,




                                            Xxxx X. Xxxxxxxx


cc:      Xxxxxxx Xxxxxx
         Xxxxx Xxxxxx
         Xxxxxxxxx Xxxxxx
         Xxxxx X. Xxxxx
         Xxxxxx X. Xxxxxxxx, Esq.