Document:

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                    COLLATERAL ASSIGNMENT OF LEASES AND RENTS
                    -----------------------------------------

         This Collateral Assignment of Leases and Rents (hereinafter, this
"Assignment") made as of this ___ day of March, 2004 by Cedar Dubois, LLC, a
Delaware limited liability company having an address at 44 South Bayles Avenue,
Port Washington, New York 11050 (hereinafter, together with any successors and
assigns, the "Assignor") to FLEET NATIONAL BANK, a national banking association
having an address at 100 Federal Street, 8th Floor, Boston, Massachusetts 02110,
as agent under a certain Loan Agreement (hereinafter, the "Loan Agreement")
dated January 30, 2004, by and among CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.
(hereinafter, the "Borrower", which Borrower is not a party to this Assignment),
Fleet National Bank and the other lending institutions which are or become
parties to the Loan Agreement (Fleet National Bank and the other lending
institutions which are or become parties to the Loan Agreement are collectively
referred to as the "Lenders" and individually as the "Lender"), and Fleet
National Bank, as Agent (hereinafter, together with any successors and assigns,
the "Agent"), as the holder of this Assignment, and the Obligations (as defined
below) secured hereby.

                          W I T N E S S E T H  T H A T:
                          - - - - - - - - - -  - - - -

1.       Grant of Assignment. This Assignment is granted pursuant to the terms,
         provisions and conditions of the Loan Agreement. Capitalized terms used
         herein which are not otherwise specifically defined shall have the same
         meaning herein as in the Loan Agreement.

         Assignor, for good and valuable consideration, receipt of which is
hereby acknowledged, hereby grants, transfers and assigns to Agent and the
Lenders, and grants to Agent and the Lenders a continuing pledge of and security
interest in, the entire present and future interest of Assignor in, to and
under: (a) all leases, subleases, rental agreements or other occupancy
agreements to which Assignor is a party (hereinafter, the "Leases") now or
hereafter in existence, with respect to all or any portion of the real property
located at the intersection of Route 255 and Commons Drive, Sandy Township,
Clearfield County, Pennsylvania (hereinafter, the "Property"); (b) all rents,
income and profits of any kind arising from such interests in the Leases and any
renewals or extensions thereof for the use and occupation of all or any portion
of the Property; (c) all guaranties of and security for the Leases; and (d) all
proceeds of the foregoing.

         Assignor is the owner of the Property. A legal description of the
Property is annexed hereto as Exhibit A.

2.       Obligations Secured. This Assignment is made for the purpose of
         securing the "Obligations" as follows:

                  A. The Guaranteed Obligations, as such term is defined in that
         certain Guaranty of even date executed by the Assignor in favor of the
         Agent on behalf of the Lenders;

                  B. The payment, performance, discharge and satisfaction of
         each covenant, warranty, representation, undertaking and condition to
         be paid, performed, satisfied and complied with by Assignor under and
         pursuant to this Assignment, the Guaranty, the Loan Documents, or any
         other document executed in connection therewith;

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                  C. The payment of all costs, expenses, legal fees and
         liabilities incurred by Agent or any Lender in connection with the
         enforcement of any of Agent's or any Lender's rights or remedies under
         this Assignment, the Guaranty, the Loan Documents, or any other
         instrument, agreement or document which evidences or secures any other
         obligations or collateral therefor, whether now in effect or hereafter
         executed; and

                  D. The payment, performance, discharge and satisfaction of all
         other liabilities and obligations of Assignor to Agent and the Lenders,
         whether now existing or hereafter arising, direct or indirect, absolute
         or contingent, and including, but without limitation express or implied
         upon the generality of the foregoing, each such liability and
         obligation of Assignor under this Assignment, the Guaranty, the Loan
         Documents, and each amendment, extension, modification, replacement or
         recasting of any one or more of the instruments, agreements and
         documents referred to herein or therein or executed in connection with
         the transactions contemplated hereby or thereby.

3.       Warranties and Representations. Assignor warrants and represents that
         it is and shall be in the future the sole owner of the entire interests
         described in Section 1 above and that no rent reserved in the Leases
         has been or will be in the future otherwise assigned or anticipated,
         and that no rent for any period subsequent to the date of this
         Assignment will be collected more than one (1) month in advance except
         for security deposits and last month's rents taken in the usual course
         of business pursuant to Leases.

         Assignor further warrants and represents that as of the date hereof:
(a) true and complete copies, together with all amendments and modifications, of
all Leases presently in full force and effect have been delivered to Agent; (b)
to Assignor's knowledge, and except as disclosed to Agent no default exists on
the part of any of the lessees or tenants or of Assignor as lessor in the
performance on the part of either of the terms, covenants, provisions or
agreements in the Leases contained; (c) except as disclosed to Agent Assignor
knows of no condition which with the giving of notice or the passage of time or
both would constitute a default on the part of any of the lessees or Assignor
under the Leases; and (d) no security deposit or advance rental payment has been
made by any lessee under the Leases except as has been previously disclosed by
Assignor to Agent, or as may be specifically designated in the copies of the
Leases previously furnished to Agent.

4.       Covenants. The Assignor shall comply with the terms and conditions of
         the Loan Agreement with respect to all present and future Leases of the
         Property.

5.       Further Terms, Covenants and Conditions. This Assignment is made on the
         following terms, covenants and conditions:

         5.1 Prior to Default. So long as no Event of Default (as defined in the
Loan Agreement) exists (hereinafter, collectively, a "Continuing Default"):
Assignor shall have the right and license to manage and operate the Property and
to collect at the time of, but not more than one (1) month prior to (except for
security deposits and first or last month's rent taken in the usual course of
business pursuant to the Leases), the date provided for the payment thereof, all
rents, income and profits arising under the Leases or from the premises
described therein and, subject to the provisions of the other Loan Documents, to
retain, use and enjoy the same.

         5.2 After Default. At any time when a Continuing Default exists, Agent,
without in any way waiving such default, may at its option, without notice
(except for the notice of default), and without regard to the adequacy of the
security for the Obligations secured hereby and by the Mortgage revoke the right
and license granted above to Assignor and:

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                  (i) Authorize and direct the lessees named in any existing
         Leases or any other or future lessees or occupants of the Property,
         upon receipt from Agent of written notice to the effect that Agent is
         or the Lenders are then the holder of the Mortgage and this Assignment
         and that a Continuing Default exists thereunder, to pay over to Agent
         all rents, income and profits arising or accruing under the Leases or
         from the Property and to continue to do so until otherwise notified in
         writing by Agent. Assignor agrees that every lessee and occupant shall
         have the right to rely upon any such statement and request by Agent
         that lessee or occupant shall pay such rents to Agent without any
         obligation or right to inquire as to whether such Continuing Default
         actually exists notwithstanding any notice from or claim of Assignor to
         the contrary and that Assignor shall have no right or claim against
         lessees or occupants for any such rent so paid by lessees or occupants
         to Agent after such notice to the lessee or occupant by Agent;

                  (ii) Either in person or by agent, with or without bringing
         any action or proceedings, or by a receiver appointed by a court, take
         possession of the Property and have, hold, manage, lease and operate
         the same on such terms and for such period of time as Agent may
         reasonably deem proper and, either with or without taking possession of
         the Property in its own name, demand, sue for, or otherwise collect and
         receive, all rents, income and profits of the Property, including those
         past due and unpaid, with full power to make from time to time all
         improvements, alterations, renovations, repairs and replacements
         thereto or thereof as may seem proper to Agent; and

                  (iii) Apply such rents, income and profits to the payment of:

                           (a)   all reasonable expenses of managing the
                                 Property including, without being limited
                                 thereto, the salaries, fees and wages of a
                                 managing agent and such other employees as
                                 Agent may deem necessary, and all expenses of
                                 operating and maintaining the Property,
                                 including, without being limited thereto, all
                                 taxes, charges, claims, assessments, water
                                 rents, sewer rents and other liens, and
                                 premiums for all insurance which Agent may deem
                                 necessary, the payment or refund of security
                                 deposits, or interest thereon, and the cost of
                                 all improvements, alterations, renovations,
                                 repairs or replacements, and all expenses
                                 incident to taking and retaining possession of
                                 the Property; and

                           (b)   all sums which Assignor is responsible to pay
                                 under the Mortgage, and the principal sum,
                                 interest and indebtedness secured hereby and by
                                 the Mortgage, and all other Obligations
                                 together with all reasonable costs and
                                 reasonable attorneys' fees, in such order of
                                 priority as to any of the items mentioned in
                                 this clause (b), as Agent in its sole
                                 discretion may determine, any statute, law,
                                 custom, or use to the contrary notwithstanding.

         The exercise by Agent of the option granted it in this Section 5.2 and
         the collection of the rents, income and profits and the application
         thereof as herein provided shall not be considered a waiver by Agent of
         any Default under the other Loan Documents, or the Guaranty, or the
         Leases, or this Assignment.

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         5.3 Continuing Effect. Upon the satisfaction of the Obligations secured
hereby and by the Mortgage, (a) this Assignment shall become and be void and of
no effect, but the affidavit of any officer, agent, or attorney of Agent or the
Lenders made in good faith showing any part of said Obligations to remain
unsatisfied shall be and constitute conclusive evidence of the validity,
effectiveness and continuing force of this Assignment and any person may, and is
hereby authorized to, rely thereon and (b) Agent shall execute termination of
this Assignment at Assignor's cost. The discharge of record of the Mortgage
dated as of even date given by Assignor to Agent shall constitute a discharge of
this Assignment and a release of Agent's and the Lenders' interest in the Leases
and rents assigned hereby and the reassignment thereof (without recourse to
Agent or any Lender) to Assignor and all those claiming of record by, through or
under Assignor.

         5.4 No Waiver; Concurrent Rights. Nothing contained in this Assignment
and no act done or omitted by Agent pursuant to the powers and rights granted it
hereunder shall be deemed to be a waiver by Agent of its rights and remedies
hereunder or any one or more of the other Loan Documents, and this Assignment is
made and accepted without prejudice to any of the rights and remedies possessed
by Agent under the terms of any of the other Loan Documents. The right of Agent
to collect said principal sums, interest and indebtedness and to enforce any
other security therefore held by it may be exercised by Agent either prior to,
simultaneously with, or subsequent to any action taken by it hereunder.

         5.5 No Liability. Neither Agent nor any Lender shall be liable for any
loss sustained by Assignor resulting from Agent's failure to let the Property
after default or from any other act or omission of Agent in managing the
Property after default unless such loss is caused by the gross negligence or
willful misconduct of Agent. Agent shall not be obligated to perform or
discharge, nor does Agent hereby undertake to perform or discharge, any
obligation, duty or liability under the Leases, or under or by reason of this
Assignment, and Assignor shall, and does hereby agree to, indemnify Agent and
each of the Lenders for, and to defend and hold Agent and each of the Lenders
harmless from, any and all liability, loss or damage which may or might be
incurred under or by reason of this Assignment and from any and all claims and
demands whatsoever which may be asserted against Agent or any Lender by reason
of any alleged obligations or undertakings on its part to perform or discharge
any of the terms, covenants or agreements contained in the Leases. Should Agent
or any Lender incur any such liability under the Leases or under or by reason of
this Assignment, or in defense of any such claims or demands, the amount
thereof, including costs, expenses and reasonable attorneys' fees shall be
secured hereby and by the Mortgage and by the other collateral for the
Obligations and Assignor shall reimburse Agent and the Lenders therefor within
thirty (30) days after demand and upon the failure of Assignor so to do, Agent
may, at its option, declare all sums secured hereby immediately due and payable.
It is further understood that this Assignment shall not operate to place
responsibility for the control, care, management or repair of said Property upon
Agent, nor for the carrying out of any of the terms and conditions of the
Leases; nor shall it operate to make Agent responsible or liable for any waste
committed on the Property by tenants or any other parties, or for any dangerous
or defective condition of the Property, or for any negligence in the management,
upkeep, repair or control of said Property resulting in loss or injury or death
to any tenant, licensee, employee or stranger. Notwithstanding the foregoing,
Agent and the Lenders shall not be indemnified on account of, or exculpated from
acts of, their own gross negligence or willful misconduct.

         5.6 Effect of Foreclosure Deed. Unless Agent otherwise elects in the
instance of a Lease which is subordinate to the Mortgage and is thus terminated
by the foreclosure, upon the issuance of any deed or deeds pursuant to a
foreclosure of the Mortgage, all right, title and interest of Assignor in and to
the Leases shall, by virtue of this instrument and such deed or deeds, thereupon
vest in and become the absolute property of the grantee or grantees in such deed
or deeds without any further act or assignment by Assignor. Assignor hereby
irrevocably appoints Agent, and its successors and assigns, as its agent and

                                       -4-

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attorney in fact to execute all instruments of assignment for further assurance
in favor of such grantee or grantees in such deed or deeds as may be necessary
or desirable for such purpose.

         5.7 Rights Contained in Mortgage. This Assignment is intended to be
supplementary to, and not in substitution for, or in derogation of, any
assignment of rents to secure the Obligations contained in the Mortgage or in
any other Loan Document. In the event of any conflict between this Assignment
and any of the other Loan Documents, the provisions of this Assignment shall
govern.

         5.8 Notices. Any notice or communications in connection herewith shall
be sufficiently given only if given in the manner provided for in the Loan
Agreement.

         5.9 Grace Periods and Notice. The grace period and notice provisions
set forth in the Loan Agreement shall be applicable to any Default under this
Assignment.

         5.10 Setoff. Subject to the terms of this Section 5.10, Assignor hereby
grants to Agent and each of the Lenders, a lien, security interest and right of
setoff as security for all liabilities and obligations to Agent and the Lenders,
whether now existing or hereafter arising, upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Agent or any Lender or any entity under the control of
Fleet Financial Group, Inc., or in transit to any of them. At any time, from and
after the occurrence of and during the continuance of an Event of Default, Agent
or any Lender may set off the same or any part thereof and apply the same to any
liability or obligation of Assignor even though unmatured and regardless of the
adequacy of any other collateral securing the Loan. Within five (5) Business
Days of making any such set-off, Agent agrees to notify Assignor thereof,
provided that the failure by Agent to give such notice shall not affect the
validity of such set-off. ANY AND ALL RIGHTS TO REQUIRE AGENT OR ANY LENDER TO
EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH
SECURES THE LOAN, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH
DEPOSITS, CREDITS OR OTHER PROPERTY OF THE ASSIGNOR, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED.

6. Governing Law; Consent to Jurisdiction; Mutual Waiver of Jury Trial.

         6.1 Substantial Relationship. It is understood and agreed that all of
the Loan Documents were delivered in the Commonwealth of Massachusetts, which
Commonwealth the parties agree has a substantial relationship to the parties and
to the underlying transactions embodied by the Loan Documents.

         6.2 Place of Delivery. Assignor agrees to furnish to Agent at Agent's
office in Boston, Massachusetts all further instruments, certifications and
documents to be furnished hereunder, if any.

         6.3 Governing Law. This Assignment, except as otherwise provided in
Section 6.4, and each of the other Loan Documents shall in all respects be
governed, construed, applied and enforced in accordance with the internal laws
of the Commonwealth of Massachusetts without regard to principles of conflicts
of law, except insofar as formation of the Assignor under Delaware law requires
Delaware law to apply with respect to matters of authorization to enter into the
transaction contemplated by this Assignment.

         6.4      Exceptions.  Notwithstanding the foregoing choice of law:

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                           (a)   the procedures governing the enforcement by
                                 Agent and each of the Lenders of its
                                 foreclosure and other remedies against Assignor
                                 under the Mortgage and under the other Loan
                                 Documents with respect to the Property or other
                                 assets situated in the Commonwealth of
                                 Pennsylvania, including by way of illustration,
                                 but not in limitation, actions for foreclosure,
                                 for injunctive relief or for the appointment of
                                 a receiver shall be governed by the laws of the
                                 Commonwealth of Pennsylvania;

                           (b)   Agent and each of the Lenders shall comply with
                                 applicable law in the Commonwealth of
                                 Pennsylvania to the extent required by the law
                                 of such jurisdiction in connection with the
                                 foreclosure of the security interests and liens
                                 created under the Mortgage and the other Loan
                                 Documents with respect to the Property or other
                                 assets situated in the Commonwealth of
                                 Pennsylvania; and

                           (c)   provisions of Federal law and the law of the
                                 Commonwealth of Pennsylvania shall apply in
                                 defining the terms Hazardous Materials,
                                 Environmental Legal Requirements and Legal
                                 Requirements applicable to the Property as such
                                 terms are used in the Mortgage, the
                                 Environmental Indemnity and the other Loan
                                 Documents.

         Nothing contained herein or any other provisions of the Loan Documents
         shall be construed to provide that the substantive laws of the
         Commonwealth of Pennsylvania shall apply to any parties' rights and
         obligations under any of the Loan Documents, which, except as expressly
         provided in clauses (a), (b) and (c) of this Section 6.4, are and shall
         continue to be governed by the substantive law of Commonwealth of
         Massachusetts. In addition, the fact that portions of the Loan
         Documents may include provisions drafted to conform to the law of the
         Commonwealth of Pennsylvania is not intended, nor shall it be deemed,
         in any way, to derogate the parties' choice of law as set forth or
         referred to in this Assignment, or in the other Loan Documents. The
         parties further agree that the Agent may enforce its rights under the
         Loan Documents including, but not limited to, its rights to sue the
         Assignor or to collect any outstanding indebtedness in accordance with
         applicable law.

         6.5 Consent to Jurisdiction. Assignor hereby consents to the
nonexclusive personal jurisdiction in any state or Federal court located within
the Commonwealth of Massachusetts.

         6.6 JURY TRIAL WAIVER. ASSIGNOR, AGENT, AND EACH OF THE LENDERS
MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS ASSIGNMENT, ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS ASSIGNMENT OR ANY OTHER LOAN DOCUMENTS
CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
PARTY. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR ASSIGNOR, AGENT AND
EACH OF THE LENDERS TO ENTER INTO THE TRANSACTIONS CONTEMPLATED HEREBY.

             [The balance of this page is intentionally left blank]

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         IN WITNESS WHEREOF, the Assignor has caused this Assignment to be duly
executed and delivered as a sealed instrument as of the _____ day of March,
2004.

                                    ASSIGNOR:

                                    CEDAR DUBOIS, LLC

                                    By:     ______________________________
                                    Name:   ______________________________
                                    Title:  ______________________________

STATE OF __________________
COUNTY OF ________________

         And now, this ____ day of March, 2004, before me, the undersigned
Notary Public, personally appeared _______________, who acknowledged
himself/herself to be the _____________________ of Cedar Dubois, LLC, a Delaware
limited liability company, and that he/she, as such ____________________ being
authorized to do so, executed the foregoing instrument for the purposes therein
contained by signing the name of Cedar Dubois, LLC, by himself/herself as
_________________.

         In witness whereof, I hereunder set my hand and official seal.

                                             _____________________________
                                             Notary Public
                                             My commission expires:

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<PAGE>

                   EXHIBIT A ANNEXED TO AND MADE A PART OF THE
                    COLLATERAL ASSIGNMENT OF LEASES AND RENTS

                                LEGAL DESCRIPTION

                                 (See Attached)

                                       -8-<PAGE>
                ENVIRONMENTAL COMPLIANCE AND INDEMNITY AGREEMENT
                ------------------------------------------------

         This Environmental Compliance and Indemnity Agreement (hereinafter, the
"Environmental Indemnity" or "Agreement") is given pursuant to the terms and
conditions of a certain Loan Agreement (hereinafter, the "Loan Agreement") dated
January 30, 2004 by and among CEDAR SHOPPING CENTERS PARTNERSHIP, L.P., a
Delaware limited partnership having an address at 44 South Bayles Avenue, Port
Washington, New York 11050 (hereinafter, the "Borrower"), Fleet National Bank
and the other lending institutions which are or become parties to the Loan
Agreement (Fleet National Bank and the other lending institutions which are or
become parties to the Loan Agreement are collectively referred to as the
"Lenders" and individually as the "Lender"), and Fleet National Bank, a national
banking association having an address at 100 Federal Street, 8th Floor, Boston,
Massachusetts 02110, as Agent (hereinafter, together with any successors and
assigns thereof, the "Agent"). Capitalized terms used herein which are not
otherwise specifically defined shall have the same meaning herein as in the Loan
Agreement.

         As used herein:

         A. The term "Environmental Legal Requirements" shall mean all
applicable present or future federal, state, county and local laws, by-laws,
rules, regulations, codes and ordinances, or any judicial or administrative
interpretations thereof, and the requirements of any governmental agency or
authority having or claiming jurisdiction with respect thereto, applicable to
the regulation or protection of the environment, the health and safety of
persons and property and all other environmental matters and shall include, but
not be limited to, all orders, decrees, judgments and rulings imposed through
any public or private enforcement proceedings, relating to Hazardous Materials
or the existence, use, discharge, release, containment, transportation,
generation, storage, management or disposal thereof, or otherwise regulating or
providing for the protection of the environment applicable to the Property and
relating to Hazardous Materials, or to the existence, use, discharge, release or
disposal thereof. Environmental Legal Requirements presently include, but are
not limited to, the following laws: Comprehensive Environmental Response
Compensation and Liability Act (42 U.S.C. 59601 et seq.), the Hazardous
Materials Transportation Act (49 U.S.C. 51801 et seq.), the Public Health
Service Act (42 U.S.C. 5300(f) et seq.), the Pollution Prevention Act (42
U.S.C. 513101 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act
(7 U.S.C. 5136 et seq.), the Resource Conservation and Recovery Act (42 U.S.C.
ss.6901 et seq.), the Federal Clean Water Act (33 U.S.C. ss.1251 et seq.), The
Federal Clean Air Act (42 U.S.C. 57401 et seq.), the Pennsylvania Solid Waste
Management Act, 35 P.S. ss.6018.101 et seq. and/or Pa. Code ss.75.260 and
75.261, the Pennsylvania Hazardous Sites Cleanup Act, 35 P.S. ss.6020.101 et
seq., the Clean Streams Law, 35 P.S. ss.691.1 et seq., and the Storage Tank and
Spill Prevention Act, 35 P.S. ss.6021.101 et seq.

         B. The term "Hazardous Materials" shall mean asbestos, mold, flammable
materials, explosives, radioactive or nuclear substances, polychlorinated
biphenyls, other carcinogens, oil and other petroleum products, radon gas, urea
formaldehyde, chemicals, gases, solvents, pollutants, contaminants, and any
other hazardous or toxic materials, wastes and substances which are defined,
determined or identified as such in any present or future federal, state or
local laws, by-laws, rules, regulations, codes or ordinances or any judicial or
administrative interpretation thereof.

         C. The term "Property" shall mean the land located at the intersection
of Route 255 and Commons Drive, Sandy Township, Clearfield County, Pennsylvania.

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         D. The term "Surrounding Property" shall mean any property located
within one hundred (100) feet of the perimeter of the Property.

         E. The term "Guarantor" shall mean, jointly and severally, Cedar
Dubois, LLC, and Cedar Shopping Centers, Inc.

         F. The term "Indemnitors" shall mean Borrower and Guarantor.

         G. The term "Indemnified Party" shall mean: (i) Agent and each of the
Lenders; (ii) all those claiming by, through or under Agent or any Lender,
including any subsequent holder of the Loan and any present or future owner of a
participation interest therein; (iii) any subsequent owner or tenant of all or
any portion of the Property following the exercise by Agent of its rights under
the Loan Agreement, the Guaranty, the Mortgage, the Assignment of Leases and
Rents or the other Loan Documents, including, but not limited to, a foreclosure
sale or deed in lieu thereof; and (iv) as to each of the foregoing, their
respective affiliate, parent and subsidiary corporations, and, as applicable,
the respective officers, directors, stockholders, agents, employees, accountants
and attorneys of any one or more of them, and any person, firm or entity which
controls, is controlled by, controlling, or under common control with, any one
or more of them.

         H. The term "Environmental Enforcement Action" shall mean all actions,
orders, requirements or liens instituted, threatened in writing, required,
completed, imposed or placed by any governmental authority and all claims made
or threatened in writing by any other person against or with respect to the
Property, or any present or past owner or occupant thereof, arising out of or in
connection with any of the Environmental Legal Requirements, any environmental
condition, or the assessment, monitoring, clean-up, containment, remediation or
removal of, or damages caused or alleged to be caused by, any Hazardous
Materials (i) located on or under the Property, or (ii) emanating from the
Property.

         I. The terms "generated," "stored," "transported," "utilized,"
"disposed," "managed," "released" and "threat of release," and all conjugates
thereof, shall have the meanings and definitions set forth in the Environmental
Legal Requirements.

         J. The term "Environmental Reports" shall mean those written reports
with respect to environmental matters affecting the Property furnished to the
Agent prior to the execution of this Agreement.

         FOR VALUE RECEIVED, and to induce Agent and the Lenders to grant the
Loan and extend credit to the Borrower as provided for in the Loan Agreement and
the other Loan Documents, Indemnitors hereby unconditionally agree as follows:

1. Compliance with Environmental Legal Requirements.

                  1.1 Compliance. Until the full satisfaction of the Borrower's
         Obligations, and full satisfaction of the Guaranteed Obligations (as
         defined in the Guaranty executed by the Guarantor), as applicable, the
         Indemnitors hereby guaranty that the Indemnitors shall comply in all
         materials respects with all Environmental Legal Requirements applicable
         to the Property, and that the Indemnitors shall take all remedial
         action necessary to avoid any liability of the Indemnitors or any
         Indemnified Party, or any subsequent owner of the Property, and to
         avoid the imposition of, or to discharge (by payment, bonding, or
         otherwise), any liens on the Property, as a result of any failure to
         comply with Environmental Legal Requirements applicable to the
         Property.

                                       -2-

<PAGE>

                  1.2 Prohibitions. Without limitation upon the generality of
         foregoing, Indemnitors and each of them agree that they:

                           (a) shall not release or permit any release of any
                  Hazardous Materials on the Property;

                           (b) shall not generate or permit any Hazardous
                  Materials to be generated on the Property;

                           (c) shall not except in strict compliance with all
                  Environmental Legal Requirements, store, or utilize, or permit
                  any Hazardous Materials to be stored or utilized on the
                  Property;

                           (d) shall not dispose of or permit any Hazardous
                  Materials to be disposed of on the Property;

                           (e) shall not fail to operate, maintain, repair and
                  use the Property in accordance with all Environmental Legal
                  Requirements; or

                           (f) shall use commercially reasonable efforts not to
                  allow, permit or suffer any other person or entity to operate,
                  maintain, repair and use the Property except in accordance
                  with Environmental Legal Requirements.

2.       Notice of Conditions. Indemnitors shall provide Agent with prompt
         written notice, but in no event later than ten (10) Business Days after
         obtaining any actual knowledge or actual notice thereof, of any of the
         following conditions: (i) the presence, or any release or threat of
         release, of any Hazardous Materials on, under or from the Property,
         whether or not caused by any of the Indemnitors; (ii) any Environmental
         Enforcement Action instituted or threatened with respect to the
         Property; or (iii) any condition or occurrence on the Property that may
         constitute a violation of any of the Environmental Legal Requirements
         with respect to the Property.

3.       Indemnitors' Agreement to take Remedial Actions.

                  3.1 Remedial Actions. Upon any of the Indemnitors becoming
         aware of the violation of any Environmental Legal Requirement related
         to the Property, or the presence, or any release or any threat of
         release, of any Hazardous Materials on, under, or from the Property,
         whether or not caused by any of the Indemnitors, Indemnitors shall,
         subject to the rights to contest set forth in Section 6, immediately
         take all actions to cure or eliminate any such violation of any such
         Environmental Legal Requirement and, where required by any such
         Environmental Legal Requirement, to arrange for the assessment,
         monitoring, clean-up, containment, removal, remediation, or restoration
         of the Property.

                  3.2 Security For Costs. If the potential costs associated with
         the actions required in Section 3.1, the release of any lien against
         the Property, and the release or other satisfaction of the liability,
         if any, of any of the Indemnitors with respect to the Property arising
         under or related to any of the Environmental Legal Requirements or any
         Environmental Enforcement Action are determined by Agent, in good
         faith, to exceed $500,000.00, Agent shall have the right to require the
         Indemnitors to provide, and the Indemnitors shall provide, within
         thirty (30) days after written request therefor, a bond, letter of
         credit or other similar financial assurance, in form and substance
         satisfactory to Agent, in its good faith judgment, evidencing to

                                       -3-

<PAGE>

         Agent's reasonable satisfaction that the necessary financial resources
         will be unconditionally available to pay for all of the foregoing.

                  3.3 Environmental Assessments. Agent shall have the right to
         require the Indemnitors, at their own cost and expense, to obtain a
         professional environmental assessment of the Property in accordance
         with Agent's then standard environmental assessment requirements and
         sufficient in scope to comply with the requirements of Section 4 upon
         the occurrence of any one or more of the following events: (i) an Event
         of Default, or (ii) upon receipt of any notice of any of the conditions
         specified in Section 2 of this Agreement.

4.       Agent's Rights to Inspect the Property and Take Remedial Actions.

                  4.1 Agent's Rights. So long as any of the Loan Documents shall
         remain in force and effect, Agent shall have the right, but not the
         obligation, through such representatives or independent contractors as
         it may designate, to enter upon the Property, at reasonable times and
         upon reasonable notice to the Indemnitors and subject to the rights of
         any tenants at the Property, and to expend funds to:

                           4.1.1 Assessments. Cause one (1) or more
                  environmental assessments of the Property to be undertaken, if
                  Agent in its reasonable discretion determines that any of the
                  conditions set forth in Section 2 exists. Such environmental
                  assessments may include, without limitation, (i) detailed
                  visual inspections of the Property, including without
                  limitation all storage areas, storage tanks, drains, drywells
                  and leaching areas; (ii) the taking of soils and surface and
                  sub-surface water samples; (iii) the performance of soils and
                  ground water analysis; and (iv) the performance of such other
                  investigations or analysis as are reasonably necessary and
                  consistent with sound professional environmental engineering
                  practice in order for Agent to obtain a complete assessment of
                  the compliance of the Property and the use thereof with all
                  Environmental Legal Requirements and to make a determination
                  as to whether or not any of the conditions set forth in
                  Section 2 exists;

                           4.1.2 Cure. Cure any breach of the representations,
                  warranties, covenants and conditions made by or imposed upon
                  Indemnitors under this Agreement including without limitation
                  any violation by any of Indemnitors, or by the Property, or by
                  any other occupant, prior occupant or prior owner thereof, of
                  any of the Environmental Legal Requirements applicable to the
                  Property;

                           4.1.3 Prevention and Precaution. Take all actions as
                  are necessary to (i) prevent the migration of Hazardous
                  Materials on, under, or from the Property to any other
                  property; (ii) clean-up, contain, remediate or remove any
                  Hazardous Materials on, under, or from any other property
                  which Hazardous Materials originated on, under, or from the
                  Property; or (iii) prevent the migration of any Hazardous
                  Materials on, under, or from any other property to the
                  Property;

                           4.1.4 Environmental Enforcement Actions. Comply with,
                  settle, or otherwise satisfy any Environmental Enforcement
                  Action including, but not limited to, the payment of any funds
                  or penalties imposed by any governmental authority and the
                  payment of all amounts required to remove any lien or threat
                  of lien on or affecting the Property; provided, however, that
                  the Agent shall not be permitted to take any such action so
                  long as (i) the Borrower, or any other Indemnitor, is

                                       -4-

<PAGE>

                  exercising its rights under Section 6 of this Agreement, and
                  (ii) no Event of Default has occurred and is continuing; and

                           4.1.5 General. Comply with, settle, or otherwise
                  satisfy any Environmental Legal Requirement and correct or
                  abate any environmental condition on, or which threatens, the
                  Property and which could cause damage or injury to the
                  Property or to any person; provided, however, that the Agent
                  shall not be permitted to take any such action so long as (i)
                  the Borrower, or any other Indemnitor, is exercising its
                  rights under Section 6 of this Agreement, and (ii) no Event of
                  Default has occurred and is continuing.

                  4.2 Recovery of Costs. Any amounts paid or advanced by Agent
         or any Lender and all costs and expenditures incurred in connection
         with any action taken pursuant to the terms of this Agreement,
         including but not limited to reasonable environmental consultants' and
         experts' fees and expenses, reasonable attorneys' fees and expenses,
         court costs and all costs of assessment monitoring clean-up,
         containment, remediation, removal and restoration, with interest
         thereon at the Default Rate, shall be a demand obligation of
         Indemnitors to Agent and, to the extent not prohibited by law, and so
         long as the Borrower's Obligations and the Guaranteed Obligations are
         outstanding, shall be added to the obligations secured by the Mortgage
         when paid by Agent or any Lender and shall be secured by the lien of
         the Mortgage and the other Security Documents as fully and as
         effectively and with the same priority as every other obligation
         secured thereby.

                  4.3 Agent and the Lenders Not Responsible. The exercise by
         Agent or any Lender of any one or more of the rights and remedies set
         forth in this Section 4 shall not operate or be deemed (a) to place
         upon Agent or any Lender any responsibility for the operation, control,
         care, service, management, maintenance or repair of the Property, or
         (b) make Agent or any Lender the "owner" or "operator" of the Property
         or a "responsible party" within the meaning of any of the Environmental
         Legal Requirements.

                  4.4 Agent's and the Lenders' Subrogation. Furthermore, Agent
         and/or any Lender by making any such payment or incurring any such
         costs shall be subrogated to all rights of each of Indemnitors or any
         other occupant of the Property to seek reimbursement from any other
         person including, without limitation, any predecessor, owner or
         occupant of the Property who may be a "responsible party" under any of
         the Environmental Legal Requirements in connection with the presence of
         Hazardous Materials on or under or which emanated from, the Property.

                  4.5 Agent/Lender May Stop. Without limiting the generality of
         the other provisions of this Agreement, any partial exercise by Agent
         or any Lender of any one or more the rights and remedies set forth in
         this Section 4 including, without limitation, any partial undertaking
         on the part of Agent or any Lender to cure any failure by any of the
         Indemnitors, or of the Property, or any other occupant, prior occupant
         or prior owner thereof, to comply with any of the Environmental Legal
         Requirements shall not obligate Agent or any Lender to complete such
         actions taken or require Agent or any Lender to expend further sums to
         cure such non-compliance.

5.       Indemnification. At all times, both before and after the repayment of
         the Loan, Indemnitors hereby jointly and severally agree that they
         shall at their sole cost and expense indemnify, defend, exonerate,
         protect and save harmless each Indemnified Party against and from any
         and all damages, losses, liabilities, obligations, penalties, claims,
         litigation, demands, defenses, judgment, suits, proceedings, costs,
         disbursements or expenses of any kind or nature whatsoever, including,

                                       -5-

<PAGE>

         without limitation, reasonable attorneys' and experts' fees and
         disbursements, which may at any time be imposed upon, incurred by or
         asserted or awarded against any Indemnified Party and arising from or
         out of:

                  5.1 Hazardous Materials. Any Hazardous Materials on, in,
         under, affecting or emanating from all or any portion of the Property
         on or before the date hereof, or which may hereafter affect all or any
         portion of the Property, whenever discovered;

                  5.2 Environmental Legal Requirements. The violation of any
         Environmental Legal Requirement by any Indemnitor, or with respect to
         the Property, existing on or before the date hereof or which may so
         exist in the future, whenever discovered;

                  5.3 Breach of Warranty, Representation or Covenant. Any breach
         of warranty or representation or covenant made by any Indemnitor under
         or pursuant to this Agreement; and

                  5.4 General. The enforcement of this Agreement or the
         assertion by any Indemnitor of any defense to the obligations of any
         Indemnitor hereunder, whether any of such matters arise before or after
         foreclosure of the Mortgage or other taking of title to or possession
         of all or any portion of the Property by Agent or any other Indemnified
         Party, and specifically including therein, without limitation, the
         following: (i) costs incurred for any of the matters set forth in
         Section 4 of this Agreement; and (ii) costs and expenses incurred in
         ascertaining the existence or extent of any asserted violation of any
         Environmental Legal Requirements relating to the Property and any
         remedial action taken on account thereof including, without limitation,
         the reasonable costs, fees and expenses of engineers, geologists,
         chemists, other scientists, attorneys, surveyors, and other
         professionals, or testing and analyses performed in connection
         therewith.

                  5.5 Limitation. Notwithstanding the foregoing provisions of
         this Section 5, the obligation of the Indemnitors to indemnify, defend,
         exonerate, protect and save harmless each Indemnified Party, as more
         particularly set forth herein, shall not be applicable to any damages,
         losses, liabilities, obligations, penalties, claims, litigation,
         demands, defenses, judgments, suits, proceedings, costs, disbursements
         or expenses of any kind which are a direct result of the willful
         misconduct or gross negligence of any Indemnified Party.

6.       Right to Contest. Borrower, or any other Indemnitor, may contest in
         good faith any claim, demand, levy or assessment under any
         Environmental Legal Requirements, including, but not limited to, any
         claim with respect to Hazardous Materials, by any person or entity if:

                  6.1 Material Question In Good Faith. The contest is based upon
         a material question of law or fact raised by Borrower or such other
         Indemnitor in good faith;

                  6.2 Diligent Pursuit. Borrower or such other Indemnitor
         properly commences and thereafter diligently pursues the contest;

                  6.3 No Impairment. The contest will not materially impair the
         taking of any required remedial action with respect to such claim,
         demand, levy or assessment;

                  6.4 Adequate Resources. Borrower, or such other Indemnitor,
         demonstrates to Agent's reasonable satisfaction that Borrower, or such
         other Indemnitor, has the financial capability to undertake and pay for
         such contest and any remedial action then or thereafter necessary;

                                       -6-

<PAGE>

                  6.5 Resolve By Maturity. There is no reason to believe that
         the contest will not be resolved prior to the Maturity of the Loan; and

                  6.6 No Event Of Default. No Event of Default exists under the
         Loan Documents.

7.       Waivers. Until the full satisfaction of the Borrower's Obligations and
         full satisfaction of the Guaranteed Obligations, Indemnitors each
         hereby waive and relinquish to the fullest extent now or hereafter not
         prohibited by applicable law:

                  7.1 Suretyship Defenses. All suretyship defenses and defenses
         in the nature thereof;

                  7.2 Marshalling. Any right or claim of right to cause a
         marshalling of any Indemnitor's assets or to cause Agent to proceed
         against any of the Collateral for the Loan before proceeding under this
         Agreement against any Indemnitor, or to require Agent to proceed
         against Indemnitors in any particular order;

                  7.3 Contribution. All rights and remedies against any other
         Indemnitor, including, but not limited to, any rights of subrogation,
         contribution, reimbursement, exoneration or indemnification pursuant to
         any express or implied agreement, or now or hereafter accorded by
         applicable law to indemnitors, guarantors, sureties or accommodation
         parties; provided, however, unless Agent otherwise expressly agrees in
         writing, such waiver by any particular Indemnitor shall not be
         effective to the extent that by virtue thereof such Indemnitor's
         liability under this Indemnity Agreement or under any other Loan
         Document is rendered invalid, voidable, or unenforceable under any
         applicable state or federal law dealing with the recovery or avoidance
         of so-called preferences or fraudulent transfers or conveyances or
         otherwise;

                  7.4 Notice. Notice of the acceptance hereof, presentment,
         demand for payment, protest, notice of protest, or any and all notice
         of nonpayment, nonperformance, nonobservance or default or other proof
         or notice of demand whereby to charge Indemnitors therefor;

                  7.5 Statute of Limitations. The pleading of any statute of
         limitations as a defense to such Indemnitor's obligations hereunder;
         and

                  7.6 Jury Trial. The right to a trial by jury in any matter
         related to this Environmental Indemnity.

         EACH INDEMNITOR, AGENT AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY
         AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY
         LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
         THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT CONTEMPLATED TO BE EXECUTED
         IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
         STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTIES; THIS
         WAIVER BEING A MATERIAL INDUCEMENT FOR AGENT AND THE LENDERS TO ACCEPT
         THIS AGREEMENT AND TO MAKE THE LOAN;

                                       -7-

<PAGE>

8.       Cumulative Rights. Agent's rights under this Agreement shall be in
         addition to and not in limitation of all of the rights and remedies of
         Agent under the other Loan Documents. All rights and remedies of Agent
         shall be cumulative and may be exercised in such manner and combination
         as Agent may determine.

9.       No Impairment. The liability of Indemnitors hereunder shall in no way
         be limited or impaired by, and each Indemnitor hereby assents to and
         agrees to be bound by, any amendment or modification of the provisions
         of the Loan Documents to or with Agent and the Lenders by Borrower or
         any Indemnitor or any person who succeeds Borrower as owner of the
         Property. In addition, the liability of Indemnitors under this
         Agreement shall in no way be limited or impaired by:

                  9.1 Extensions. Any extensions of time for performance
         required by any of the Loan Documents;

                  9.2 Amendments. Any amendment to or modification of any of the
         Loan Documents;

                  9.3 Transfer. Any sale or assignment of the Loan, or any sale,
         assignment or foreclosure of the Mortgage, or any sale or transfer of
         all or part of the Property;

                  9.4 Exculpatory Language. Any exculpatory, or nonrecourse, or
         limited recourse, provision in any of the Loan Documents limiting
         Agent's or any Lenders' recourse to the Property encumbered by the
         Mortgage or to any other property or limiting Agent's or any Lenders'
         rights to a deficiency judgment against Borrower or any other party;

                  9.5 Inaccuracies. The accuracy or inaccuracy of any of the
         representations or warranties made by or on behalf of any Indemnitor
         under the Loan Documents or otherwise;

                  9.6 Release. The release of any Indemnitor, or of any other
         person or entity, from performance or observance of any of the
         agreements, covenants, terms or conditions contained in this Agreement
         or any of the other Loan Documents by operation of law, Agent's or any
         Lenders' voluntary act, or otherwise;

                  9.7 Bankruptcy or Reorganization. The filing of any bankruptcy
         or reorganization proceeding by or against any Indemnitor, any general
         partner or owner of any Indemnitor, or any subsequent owner of the
         Property;

                  9.8 Substitution. The release or substitution in whole or part
         of any collateral or security for the Loan;

                  9.9 Failure To Perfect. Agent's failure to record the Mortgage
         or file any UCC financing statements (or Agent's improper recording or
         filing of any thereof) or to otherwise perfect, protect, secure, or
         insure any security interest or lien given as security for the Loan; or

                  9.10 Invalidity. The invalidity or unenforceability of all or
         any portion of any of the Loan Documents as to any Indemnitor or to any
         other person or entity.

Any of the foregoing may be accomplished with or without notice to Borrower or
any Indemnitor (except as otherwise required pursuant to the terms and
conditions of the Loan Agreement) or with or without consideration.

                                       -8-

<PAGE>

10.      Delay Not Waiver. No delay on Agent's part in exercising any right,
         power or privilege hereunder or under any of the Loan Documents shall
         operate as a waiver of any such privilege, power or right. No waiver by
         Agent in any instance shall constitute a waiver in any other instance.

11.      Warranties and Representations. The Indemnitors each represent and
         warrant to Agent, the same to be true as of the date hereof and
         throughout the period that any of the Loan Documents shall remain in
         force and effect, that, except as set forth in the Environmental
         Reports, and except as may be further updated in accordance with the
         terms and conditions of Section 6.22 of the Loan Agreement:

                  11.1 No Hazardous Materials at Property. No Hazardous
         Materials have been or are currently generated, stored, transported,
         utilized, disposed of, managed, released or located on, under or from
         the Property, whether or not in reportable quantities, or in any manner
         introduced onto the Property including without limitation any septic,
         sewage or other waste disposal systems servicing the Property;

                  11.2 No Violations Claimed Re Property or Indemnitors. None of
         the Indemnitors has received any notice from the Pennsylvania
         Department of Environmental Protection, the United States Environmental
         Protection Agency or any other governmental authority claiming that (i)
         the Property or any use thereof violates any of the Environmental Legal
         Requirements or (ii) any of the Indemnitors or any of their respective
         employees or agents have violated any of the Environmental Legal
         Requirements with respect to the Property or any Surrounding Property;

                  11.3 No Liability to Governmental Authorities. None of the
         Indemnitors has incurred any liability to the Commonwealth of
         Pennsylvania or the City/Town of Sandy Township, the United States of
         America or any other governmental authority under any of the
         Environmental Legal Requirements;

                  11.4 No Lien on Property. No lien against the Property has
         arisen under or related to any of the Environmental Legal Requirements;

                  11.5 No Enforcement Actions. There are no Environmental
         Enforcement Actions pending, or to the best of the Indemnitors'
         information, knowledge and belief after due inquiry, threatened in
         writing;

                  11.6 No Knowledge of Hazardous Materials at Surrounding
         Property. None of the Indemnitors has any knowledge, after due inquiry,
         that any Hazardous Materials have been or are currently generated,
         stored, transported, utilized, disposed of, managed, released or
         located on, under or from the Surrounding Property in violation of or
         allegedly in violation of any of the Environmental Legal Requirements;

                  11.7 No Knowledge of Violations Re Surrounding Property. None
         of the Indemnitors has any knowledge, after due inquiry, of any action
         or order instituted or threatened by any person or governmental
         authority arising out of or in connection with the Environmental Legal
         Requirements involving the assessment, monitoring, cleanup,
         containment, remediation or removal of or damages caused or alleged to
         be caused by any Hazardous Materials generated, stored, transported,
         utilized, disposed of, managed, released or located on, under or from
         any Surrounding Property;

                                       -9-

<PAGE>
                  11.8 No Underground Storage Tanks. There are no underground
         storage tanks on or under the Property;

                  11.9 No Dangerous Conditions. No environmental condition
         exists on the Property which could cause any damage or injury to the
         Property or to any person;

                  11.10 Valid and Binding. This Agreement constitutes the legal,
         valid and binding obligation of each of the Indemnitors in accordance
         with the respective terms hereof, subject to bankruptcy, insolvency and
         similar laws of general application affecting the rights and remedies
         of creditors, and with respect to the availability of the remedy of
         specific enforcement subject to the discretion of the court before
         which proceedings therefor may be brought;

                  11.11 Entity Matters. That each Indemnitor is a duly organized
         validly existing entity in good standing under the laws of its
         organization and has all requisite power and authority to conduct its
         business and to own its properties as now conducted or owned;

                  11.12 No Violations. To the knowledge of the Indemnitors, the
         performance of the obligations evidenced hereby will not constitute a
         violation of any law, order, regulation, contract, organizational
         document or agreement to which the Indemnitors or any of them is a
         party or by which any one or more of them or their property is or may
         be bound;

                  11.13 No Litigation. There is no material litigation or
         administrative proceeding now pending or threatened against the
         Indemnitors or any of them which if adversely decided could materially
         impair the ability of any one or more of the Indemnitors to pay or
         perform their respective obligations hereunder;

                  11.14 Material Economic Benefit. The granting of the Loan to
         Borrower will constitute a material economic benefit to each
         Indemnitor.

12.      Multiple Counterparts. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original. Each of the
         counterparts shall constitute but one in the same instrument and shall
         be binding upon each of the parties individually as fully and
         completely as if all had signed but one instrument so that the joint
         and several liability of each of the Indemnitors hereunder shall be
         unaffected by the failure of any of the undersigned to execute any or
         all of said counterparts.

13.      Notices. Any notice or other communication in connection with this
         Agreement shall be in writing and (i) deposited in the United States
         mail, postage prepaid, by registered or certified mail, or (ii) hand
         delivered by any commercially recognized courier service or overnight
         delivery service, such as Federal Express, or (iii) sent by facsimile
         transmission if a FAX Number in designated below, addressed as follows:

                  If to the Indemnitors:

                  Cedar Shopping Centers, Inc.
                  Cedar Shopping Centers Partnership, L.P.
                  Cedar Dubois, LLC
                  44 South Bayles Avenue
                  Port Washington, New York 11050
                  Attention: Leo S. Ullman
                  FAX No.: (516) 767-6497

                                      -10-

<PAGE>

                  And

                  Attention: Thomas J. O'Keeffe

         with copies by regular mail or such hand delivery or facsimile
         transmission to:

                  Stroock & Stroock & Lavan LLP
                  180 Maiden Lane
                  New York, New York 10038-4982
                  Attention: Mark A. Levy, Esq.
                  FAX No.: (212) 806-6006

                  If to Agent:

                  Fleet National Bank
                  100 Federal Street
                  Boston, Massachusetts
                  Attention: James L. Keough, Director
                  FAX No.: (617) 434-6384

         with copies by regular mail or such hand delivery or facsimile
         transmission to:

                  Riemer & Braunstein LLP
                  Three Center Plaza
                  Boston, Massachusetts
                  Attention: Kevin J. Lyons, Esq.
                  FAX No.: (617) 880-3456

Any such addressee may change its address for such notices to any other address
in the United States as such addressee shall have specified by written notice
given as set forth above.

         All periods of notice shall be measured from the deemed date of
delivery. A notice shall be deemed to have been given, delivered and received
upon the earliest of: (i) if sent by such certified or registered mail, on the
third Business Day following the date of postmark; or (ii) if hand delivered by
such courier or overnight delivery service, when so delivered or tendered for
delivery during customary business hours on a Business Day at the specified
address; or (iii) if so mailed, on the date of actual receipt (or tender of
delivery) as evidenced by the return receipt; or (iv) if so delivered, upon
actual receipt, or (v) if facsimile transmission is a permitted means of giving
notice, upon receipt as evidenced by confirmation.

14.      No Oral Change. No provision of this Agreement may be changed, waived,
         discharged, or terminated orally by telephone or by any other means
         except by an instrument in writing signed by the party against whom
         enforcement of the change, waiver or discharge or termination is
         sought.

15.      Parties Bound; Benefit. This Agreement shall be binding upon the
         Indemnitors and their respective successors, assigns, heirs and
         personal representatives and shall be for the benefit of Agent and the
         Lenders, and of any subsequent holder of the Loan and of any owner of a
         participation interest therein. In the event the Loan is sold or
         transferred, then the liability of the Indemnitors to Agent and the
         Lenders shall then be in favor of both Agent and the Lenders originally
         named herein and each subsequent holder of the Loan and any of interest
         therein.

                                      -11-

<PAGE>

16.      Joint and Several. The obligations of each of the Indemnitors and their
         respective successors, assigns, heirs and personal representatives
         shall be joint and several.

17.      Partial Invalidity. Each of the provisions hereof shall be enforceable
         against each Indemnitor to the fullest extent now or hereafter
         permitted by law. The invalidity or unenforceability of any provision
         hereof shall not limit the validity or enforceability of each other
         provision hereof.

18.      Governing Law and Consent to Jurisdiction. This Agreement and the
         rights and obligations of the parties hereunder shall in all respects
         be governed by and construed and enforced in accordance with the laws
         of the Commonwealth of Massachusetts without giving effect to
         Massachusetts principles of conflicts of law, except to the extent that
         reference is made herein to other Loan Documents which are governed by
         the laws of the Commonwealth of Pennsylvania, and insofar as
         Environmental Legal Requirements are concerned, in accordance with
         applicable federal law and Pennsylvania law as well, and except insofar
         as formation of the parties hereunder under the law of the jurisdiction
         of the formation of the parties hereunder requires such law of the
         jurisdiction of the formation of the parties hereunder to apply with
         respect to matters of authorization to enter into the transaction
         contemplated by this Agreement. Notwithstanding the foregoing, for the
         purpose of defining Hazardous Materials and for the purpose of
         determining the nature and extent of Environmental Legal Requirements
         applicable to the Property, applicable federal law and applicable law
         of the Commonwealth of Pennsylvania shall govern and the internal laws
         of the Commonwealth of Massachusetts shall have no effect for the
         purposes of defining such terms. The parties further agree that Agent
         may enforce its rights under this Agreement and the other Loan
         Documents including, but not limited to, the rights to sue any
         Indemnitor in accordance with applicable law. The Indemnitors hereby
         irrevocably submit to the nonexclusive jurisdiction of any
         Massachusetts State Court or any Federal Court sitting in Massachusetts
         over any suit, action or proceeding arising out of or relating to this
         Agreement.

19.      Survival. The provisions of this Agreement shall continue in effect and
         shall survive (among other events) any payment and satisfaction of the
         Loan and the Obligations, any termination or discharge of the Mortgage
         granted to the Agent on the Property, foreclosure, a deed-in-lieu
         transaction, or release of the Property.

             [The balance of this page is intentionally left blank]

                                      -12-

<PAGE>

         Witness the execution and delivery hereof as an instrument under seal
as of the ____ day of March, 2004.

         INDEMNITORS:             CEDAR SHOPPING CENTERS, INC.

                                  By:    _______________________________
                                  Name:  _______________________________
                                  Title: _______________________________

                                  CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.

                                  By:   Cedar Shopping Centers, Inc.

                                        By:   _______________________________
                                        Name: _______________________________
                                        Title:_______________________________

                                  CEDAR DUBOIS, LLC

                                  By:   _______________________________
                                  Name: _______________________________
                                  Title:_______________________________

                                      -13-

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