Document:

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                          PLEDGE AND SECURITY AGREEMENT
                          -----------------------------

         PLEDGE AND SECURITY AGREEMENT (hereinafter, the "Pledge Agreement"),
dated as of March ___, 2004, by and between CEDAR SHOPPING CENTERS PARTNERSHIP,
L.P., a Delaware limited partnership having an address at c/o Cedar Shopping
Centers, Inc., 44 South Bayles Avenue, Suite 304, Port Washington, New York
11050 (hereinafter, the "Borrower"), and FLEET NATIONAL BANK, a national banking
association having an address at 100 Federal Street, 8th Floor, Boston,
Massachusetts 02110, as agent under that certain Loan Agreement (hereinafter,
the "Loan Agreement") dated January 30, 2004, by and among 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 hereinafter, collectively,
referred to as the "Lenders" and individually as the "Lender"), and Fleet
National Bank, as Agent (hereinafter, the "Agent").

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

         WHEREAS, pursuant to the Loan Agreement, the Agent and the Lenders have
agreed to make a loan (hereinafter, the "Loan") to the Borrower in the aggregate
principal amount of up to One Hundred Million Dollars ($100,000,000.00) upon the
terms and subject to the conditions set forth therein.

         WHEREAS, the Borrower owns, directly, a 100% ownership interest in the
following entity: Cedar Dubois, LLC, a Delaware limited liability company having
an address at 44 South Bayles Avenue, Port Washington, New York 11050
(hereinafter, the "Borrower Subsidiary").

         WHEREAS, the Borrower Subsidiary has substantial financial dealings
with the Borrower and are affiliated with the Borrower (by ownership and by
contractual relationship and/or other meaningful business relationship), and the
extension of credit and the providing of financial accommodations to the
Borrower will enhance and benefit the business activities and interests of the
Borrower Subsidiary.

         WHEREAS, as a condition to extending the Loan to the Borrower, the
Agent and the Lenders have required the Borrower to execute and deliver this
Pledge Agreement to secure the Borrower's obligations under the Loan Agreement.

         NOW, THEREFORE, in consideration of the premises and to induce the
Lenders to make the Loan under the Loan Agreement, the Borrower hereby agrees
with Agent and the Lenders as follows:

         1. Defined Terms. Unless otherwise defined herein, terms which are
defined in the Loan Agreement and used herein are so used as so defined (which
defined terms are expressly incorporated herein by reference), and the following
terms shall have the following meanings:

                  "Agent": as defined in the first paragraph of this Pledge
         Agreement.

                  "Borrower": as defined in the first paragraph of this Pledge
         Agreement.

                  "Borrower Subsidiary": as defined in the recitals of this
         Pledge Agreement.

                  "Collateral": means the Pledged Interests, the Pledged
         Obligations and all Proceeds thereof.

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                  "Consent": shall mean that certain Consent from the Borrower
         Subsidiary referenced in Section 4 of this Pledge Agreement.

                  "Lender" or "Lenders": as defined in the first paragraph of
         this Pledge Agreement.

                  "Loan": as defined in the recitals of this Pledge Agreement.

                  "Loan Agreement": as defined in the first paragraph of this
         Pledge Agreement.

                  "Obligations": means all indebtedness, obligations and
         liabilities of the Borrower to the Agent and/or any of the Lenders,
         whether now existing or hereafter arising, direct or indirect, absolute
         or contingent, under any one or more of: (i) this Pledge Agreement;
         (ii) the Loan Agreement, Note or any other Loan Document; and (iii)
         each of the same as hereafter modified, amended, extended or replaced,
         including, without limitation, the Obligations (as defined in the Loan
         Agreement).

                  "Pledge Agreement": means this Pledge and Security Agreement,
         as amended, supplemented or otherwise modified from time to time.

                  "Pledged Interests": means all right, title and interest of
         the Borrower, whether now owned or hereafter acquired, as the holder of
         the direct or indirect interests in the Borrower Subsidiary referred to
         in the recitals of this Pledge Agreement, together with all interests,
         certificates, options or rights of any nature whatsoever which may be
         issued or granted to the Borrower by the Borrower Subsidiary in respect
         thereof.

                  "Pledged Obligations": means all right, title and interest of
         the Borrower, whether now owned or hereafter acquired, in and to any
         and all obligations owed to the Borrower by the Borrower Subsidiary,
         whether now existing or hereafter incurred, and in and to all
         collateral granted to the Borrower or for the benefit of the Borrower
         as collateral security for such obligations.

                  "Proceeds": means (i) the Borrower's right, title and interest
         in and to all distributions, monies, fees, payments, compensations and
         proceeds now or hereafter payable in respect of the Pledged Interests
         and the Pledged Obligations, whether payable as profits, distributions,
         asset distributions, repayment of loans or capital or otherwise and
         including all "proceeds" as such term is defined in Section 9-102(a) of
         the UCC; (ii) all books, records, electronically stored data and
         information relating to the Pledged Interests and the Pledged
         Obligations and all rights of access to such books, records and
         information; (iii) all contract rights, general intangibles,
         instruments (as each such term is defined in Section 9-102(a) of the
         UCC), claims, powers, privileges, benefits and remedies of the Borrower
         relating to the foregoing; (iv) all additions to the Pledged Interests
         and the Pledged Obligations, all substitutions therefor and all
         replacements thereof; and (v) all cash or non-cash proceeds of any of
         the foregoing.

                  "UCC": means the Uniform Commercial Code from time to time in
         effect in The Commonwealth of Massachusetts; provided, that if by
         mandatory provisions of law, the perfection or the effect of perfection
         or non-perfection of the security interest granted hereunder in the
         Collateral is governed by the Uniform Commercial Code of a jurisdiction
         other than Massachusetts, "UCC" means the Uniform Commercial Code as in
         effect in such other jurisdiction for purposes of provisions hereof
         relating to such perfection or effect of perfection or non-perfection.

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         2. Pledge; Grant of Security Interest. As security for the full and
punctual payment and performance of the Obligations when due and payable
(whether upon stated maturity, by acceleration or otherwise), Borrower hereby
transfers, assigns, grants, bargains, sells, conveys, hypothecates, pledges,
sets over, endorses over and delivers to Agent, on behalf of the Lenders, all
the Pledged Interests, and Borrower hereby grants, pledges, hypothecates,
transfers and assigns to Agent, on behalf of the Lenders, a continuing lien on
and security interest in all of the Collateral.

         3. Delivery of Certificates, Instruments, Etc. The Borrower shall
deliver to Agent:

                  (a) all original certificates, instruments and other
         documents, if any, evidencing or representing the Pledged Interests,
         concurrently with the execution and delivery of this Pledge Agreement;
         and

                  (b) the original certificates, instruments or other documents,
         if any, evidencing or representing all other Collateral (except for
         such Collateral which this Pledge Agreement specifically permits the
         Borrower to retain) within five (5) days after the Borrower's receipt
         thereof.

         4. Powers and Transfer Instruments. Concurrently with the delivery to
the Agent of this Pledge Agreement and each certificate, if any, representing
the Pledged Interests, the Borrower shall deliver a duly executed Consent from
the Borrower Subsidiary.

         5. Representations and Warranties. The Borrower represents and warrants
that:

                  (a) Except for the Consent, and any other consents as may be
         required in connection with any disposition of any portion of the
         Collateral by laws affecting the offering and sale of securities
         generally or as otherwise contemplated by the Loan Agreement, no
         consent of any other person or entity (including, without limitation,
         any owner or creditor of the Borrower), and no license, permit,
         approval or authorization of, exemption by, notice or report to, or
         registration, filing (other than the filing of financing statements
         under the UCC in order to perfect a security interest in that portion
         of the Collateral in which a security interest is perfected by filing)
         or declaration with any governmental instrumentality is required in
         connection with (i) the execution, delivery, performance, validity or
         enforceability of this Pledge Agreement, (ii) the perfection or
         maintenance of the security interest created hereby (including the
         first priority nature of such security interest) or (iii) the exercise
         by the Agent of any rights provided for in this Pledge Agreement;

                  (b) The Pledged Interests in the Borrower Subsidiary
         constitute all of the ownership interests owned by the Borrower in the
         Borrower Subsidiary;

                  (c) All of the Pledged Interests have been duly and validly
         issued and are fully paid. No certificate or other instrument has been
         issued at any time to evidence the Pledged Interests. None of the
         ownership interests comprising the Collateral are dealt in or traded on
         securities exchanges or in securities markets, and none by its terms
         expressly provides that it is a security governed by Article 8 of the
         UCC or that it is an investment company security, and none is held in a
         securities account (as defined in Section 8-501 of the UCC);

                  (d) The Borrower is the sole holder of record and sole
         beneficial of, and has good and valid title to, the Pledged Interests
         in the Borrower Subsidiary, free of any and all liens or options in
         favor of, or claims of, any other Person, except the lien created by
         this Pledge Agreement;

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                  (e) Upon the filing of the Form UCC-1 Statements referred to
         in Section 13 of this Pledge Agreement in the place or office of public
         record lawfully required to perfect a security interest therein, the
         lien granted pursuant to this Pledge Agreement will constitute a valid,
         perfected first priority lien with respect to that portion of the
         Collateral in which a security interest is perfected by the filing of a
         financing statement, enforceable as such against all creditors of
         Borrower and any persons purporting to purchase any of such Collateral
         from Borrower, subject to bankruptcy, insolvency, moratorium, and other
         similar laws of general applicability affecting creditors rights and
         general equity principles; and

                  (f) There are no restrictions on the transfer of the
         Collateral to the Agent hereunder, or with respect to any subsequent
         transfer thereof or realization thereupon by the Agent and/or the
         Lenders (or, if there are any such restrictions, such transfer
         restrictions have been duly waived by all required parties or consented
         to pursuant to the Consent), and, as set forth in the Consent, the
         Borrower has obtained all consents needed in connection with any such
         transfer or subsequent transfer, subject to matters resulting from the
         operation of law.

         6. Covenants. The Borrower covenants and agrees with Agent and the
Lenders that from and after the date of this Pledge Agreement until this Pledge
Agreement shall be terminated:

                  (a) If the Borrower shall, as a result of its ownership of the
         Pledged Interests, become entitled to receive or shall receive (i) any
         membership interests (including, without limitation, any certificate
         representing a dividend or a distribution in connection with any
         reclassification, increase or reduction of capital or any certificate
         issued in connection with any reorganization), option or rights, (ii)
         any stock, (iii) any limited or general partnership interests
         (including, without limitation, any certificate representing a dividend
         or a distribution in connection with any reclassification, increase or
         reduction of capital or any certificate issued in connection with any
         reorganization), option or rights, or (iv) any property other than
         cash, whether in addition to, in substitution of, as a conversion of,
         or in exchange for any of the Pledged Interests, or otherwise in
         respect thereof, the Borrower shall accept the same as Agent's agent,
         hold the same in trust for Agent and deliver the same forthwith to
         Agent in the exact form received, duly endorsed by the Borrower to
         Agent, if required, and, to the extent the same is in the form of a
         certificate, together with an undated assignment or power covering such
         certificate, duly executed in blank and with, if Agent so requests,
         signature guaranteed, to be held by Agent hereunder as additional
         security for the Obligations.

                  (b) Without the prior written consent of Agent, the Borrower
         shall not, directly or indirectly (i) vote to enable, or take any other
         action to permit, the issuer(s) of the Pledged Interests to issue any
         interests or shares, as applicable, or to issue any other securities
         convertible into or granting the right to purchase or exchange for any
         interests of the issuer(s) of the Pledged Interests, or (ii) sell,
         assign, transfer, exchange or otherwise dispose of, or grant any option
         with respect to, the Collateral, or (iii) create, incur or permit to
         exist any lien or option in favor of, or any claim of any person or
         entity with respect to, any of the Collateral, or any interest therein,
         except for the lien provided for by this Pledge Agreement and liens
         permitted under the Loan Agreement. The Borrower will defend the right,
         title and interest of Agent in and to the Collateral against the claims
         and demands of all Persons whomsoever.

                  (c) At any time and from time to time, upon the written
         request of Agent, and at the sole expense of the Borrower, the Borrower
         will promptly and duly execute and deliver such further instruments and
         documents and take such further actions as Agent may reasonably request
         for the purposes of obtaining or preserving the full benefits of this
         Pledge Agreement and of the rights and powers herein granted. If any
         amount payable under or in

                                       -4-

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         connection with any of the Collateral shall be or become evidenced by
         any promissory note, other instrument or chattel paper, such note,
         instrument or chattel paper shall be promptly delivered to Agent, duly
         endorsed in a manner reasonably satisfactory to Agent, to be held as
         Collateral pursuant to this Pledge Agreement.

                  (d) The Borrower agrees to pay, and to indemnify and save
         Agent harmless from, any and all liabilities with respect to, or
         resulting from any delay in paying, any and all stamp, excise, sales or
         other taxes (other than income taxes on the income of Agent or any of
         the Lenders) which may be payable or determined to be payable with
         respect to any of the Collateral or in connection with any of the
         transactions contemplated by this Pledge Agreement.

                  (e) The Borrower shall not exercise any right with respect to
         the Collateral which would dilute or adversely affect Agent's rights in
         the Collateral.

                  (f) Except as permitted in the Loan Agreement, the Borrower
         shall not enter into or consent to any amendment or modification of, or
         with respect to, the operating agreements of the Borrower Subsidiary
         without Agent's prior written consent in each instance, which consent
         shall not be unreasonably withheld, conditioned or delayed.

         7. Cash Dividends; Distributions; Voting Rights.

                  (a) Notwithstanding the preceding terms of this Pledge
         Agreement, unless an Event of Default shall have occurred and be
         continuing, the Borrower shall be permitted to exercise all voting
         rights with respect to the Pledged Interests; provided, however, that
         the Borrower shall not, without the prior written consent of Agent in
         each instance, which consent shall not be unreasonably withheld,
         conditioned or delayed, vote the Collateral in favor of, or consent to,
         any resolution or action which does or might:

                                 (i)    impose any restrictions upon the sale,
                                        transfer or disposition of the
                                        Collateral other than restrictions, if
                                        any, the application of which is waived
                                        to the full satisfaction of the Agent as
                                        to the Collateral; or

                                (ii)    result in the issuance of any additional
                                        interest in the Borrower Subsidiary, or
                                        of any class or series of security,
                                        which issuance might adversely affect
                                        the value of the Collateral; or

                               (iii)    vest additional powers, privileges,
                                        preferences or priorities to any other
                                        class or series of interest in the
                                        Borrower Subsidiary to the detriment of
                                        the value of, or rights accruing to, the
                                        Collateral; or

                                (iv)    to the extent prohibited in the Loan
                                        Agreement without Agent's consent,
                                        permit the Borrower Subsidiary to sell,
                                        transfer, assign, pledge, mortgage or
                                        otherwise encumber any property owned by
                                        any of them, or to incur any new
                                        indebtedness in respect of such
                                        property, unless Agent has given its
                                        prior written consent.

                  (b) Notwithstanding the preceding terms of this Pledge
         Agreement, but subject to the terms and provisions hereof relating to
         the rights and remedies of the Agent, so long as there is no Event of
         Default that is continuing, cash dividends, distributions and other
         payments in respect of the Collateral may be made by the to the
         Borrower, and may be retained, used and enjoyed by the Borrower.

                                       -5-

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         8. Rights of Agent.

                  (a) If an Event of Default shall have occurred and be
         continuing, Agent shall have the right to receive any and all cash
         dividends or distributions or other payments paid in respect of the
         Collateral and make application thereof to the Obligations, in such
         order as Agent, in its sole discretion, may elect. In connection
         therewith, if an Event of Default shall have occurred and be
         continuing, the Agent shall have the right to direct the issuer(s) of
         the Pledged Interests, and the obligors with respect to the Pledged
         Obligations, to pay all such cash dividends or distributions or other
         payment directly to the Agent or as otherwise directed by the Agent.

                  (b) If an Event of Default shall have occurred and be
         continuing, then all registered Pledged Interests, at Agent's option,
         shall be registered in the name of Agent or its nominee, and Agent or
         its nominee may thereafter exercise (x) all voting and other rights
         pertaining to such Pledged Interests, and (y) any and all rights of
         conversion, exchange, subscription and any other rights, privileges or
         options pertaining to such Pledged Interests as if Agent were the
         absolute owner thereof (including, without limitation, the right to
         exchange at its discretion any and all of the Pledged Interests upon
         the merger, consolidation, reorganization, recapitalization or other
         fundamental change in the organizational structure of the Borrower, or
         upon the exercise by the Borrower or Agent of any right, privilege or
         option pertaining to such Pledged Interests, and in connection
         therewith, the right to deposit and deliver any and all of the Pledged
         Interests with any committee, depositary, transfer agent, registrar or
         other designated agency upon such terms and conditions as it may
         determine), all without liability except to account for property
         actually received by it, but Agent shall have no duty to exercise any
         such right, privilege or option and shall not be responsible for any
         failure to do so or delay in so doing.

                  (c) The rights of Agent hereunder shall not be conditioned or
         contingent upon the pursuit by Agent of any right or remedy against the
         Borrower or against any other person or entity which may be or become
         liable in respect of all or any part of the Obligations or against any
         other Collateral, any security therefor, any guarantee thereof, or
         right of offset with respect thereto. Agent shall not be liable for any
         failure to demand, collect or realize upon all or any part of the
         Collateral or for any delay in doing so, nor shall it be under any
         obligation to sell or otherwise dispose of any Collateral upon the
         request of the Borrower or any other person or entity or to take any
         other action whatsoever with regard to the Collateral or any part
         thereof.

         9. Actions By Agent. The Borrower hereby designates Agent as the
attorney-in-fact of the Borrower to: (a) endorse in favor of Agent any of the
Collateral following an Event of Default which is continuing; (b) cause the
transfer of any of the Collateral in such name as Agent may from time to time
determine following an Event of Default which is continuing; (c) renew, extend
or roll over any Collateral following an Event of Default which is continuing;
(d) make, demand and initiate actions to enforce any of the Collateral or rights
therein following an Event of Default which is continuing; and (e) take any
other action to effectuate the terms and provisions of this Pledge Agreement
following an Event of Default which is continuing. Following an Event of Default
which is continuing, Agent may take such action with respect to the Collateral
as Agent may reasonably determine to be necessary to protect and preserve its
interest in the Collateral. Except as otherwise provided herein, all of the
rights, remedies, powers, privileges and discretions included in this Section 9
may be exercised by Agent whether or not the Obligations are then due provided
that an Event of Default has occurred and is continuing. The within designation
and grant of power of attorney is coupled with an interest, is irrevocable until
the lien created by this Pledge Agreement is terminated by a written instrument
executed by a duly authorized officer of Agent or is required to be so
terminated by the terms of the Loan Agreement. The power of attorney shall not
be affected

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by subsequent disability or incapacity of the Borrower. Agent shall not be
liable for any act or omission to act pursuant to this Section 9, except for any
act or omission to act which is in actual bad faith, or constitutes gross
negligence or willful misconduct.

         10. Remedies.

                  (a) If an Event of Default shall have occurred and be
         continuing, Agent may exercise, in addition to all other rights and
         remedies granted in this Pledge Agreement and in any other instrument
         or agreement securing, evidencing or relating to the Obligations, all
         rights and remedies of a secured party under the UCC. Without limiting
         the generality of the foregoing, Agent, if an Event of Default shall
         have occurred and be continuing, without demand of performance or other
         demand, presentment, protest, advertisement or notice of any kind
         (except any notice required by law referred to below or required by the
         Loan Agreement) to or upon the Borrower, or any other person or entity
         (all and each of which demands, presentments, protests, advertisements
         or notices are hereby waived), may in such circumstances forthwith
         collect, receive, appropriate and realize upon the Collateral, or any
         part thereof, and/or may forthwith sell, assign, give option or options
         to purchase or otherwise dispose of and deliver the Collateral or any
         part thereof (or contract to do any of the foregoing), in one or more
         parcels at public or private sale or sales, in the over-the-counter
         market, at any exchange, broker's board or office of Agent or elsewhere
         upon such terms and conditions as it may deem advisable and at such
         prices as it may deem best, for cash or on credit or for future
         delivery without assumption of any credit risk. Agent shall have the
         right upon any such public sale or sales, and, to the extent permitted
         by law, upon any such private sale or sales, to purchase the whole or
         any part of the Collateral so sold, free of any right or equity of
         redemption in the Borrower, which right or equity is hereby waived or
         released. Agent shall apply any Proceeds from time to time held by it
         and the net proceeds of any such collection, recovery, receipt,
         appropriation, realization or sale, after deducting all reasonable
         costs and expenses of every kind incurred therein or incidental to the
         care or safekeeping of any of the Collateral or in any way relating to
         the Collateral or the rights of Agent hereunder, including, without
         limitation, reasonable attorneys' fees and disbursements, to the
         payment in whole or in part of the Obligations, in such order as Agent
         may elect, and only after such application and after the payment by
         Agent of any other amount required by any provision of law, including,
         without limitation, Section 9-615(a) of the UCC, need Agent account
         for, and/or turnover, any surplus to the Borrower. To the extent
         permitted by applicable law, the Borrower waives all claims, damages
         and demands Borrower may acquire against Agent arising out of the
         exercise by Agent of any of its rights hereunder, except for any
         claims, damages and demands Borrower may have against Agent arising
         from the gross negligence or willful misconduct of Agent. If any notice
         of a proposed sale or other disposition of Collateral shall be required
         by law, such notice shall be deemed reasonable and proper if given at
         least 10 days before such sale or other disposition. The Borrower shall
         remain liable for any deficiency if the proceeds of any sale or other
         disposition of Collateral are insufficient to pay the Obligations and
         the reasonable fees and disbursements of any attorneys employed by
         Agent to collect such deficiency.

                  (b) If any Event of Default, or other event which would
         entitle Agent or any of the Lenders to accelerate the Loan, occurs and
         is continuing, any deposits, balances or other sums credited by or due
         from Agent, any affiliate of Agent or FleetBoston Financial Corporation
         or any of the Lenders, or from any affiliate of Agent or FleetBoston
         Financial Corporation or any of the Lenders, to the Borrower may, to
         the fullest extent not prohibited by applicable law at any time or from
         time to time, without regard to the existence, sufficiency or adequacy
         of any other collateral, and without notice or compliance with any
         other condition precedent now or hereafter imposed by statute, rule of
         law or otherwise, all of which are hereby waived to the fullest extent
         permitted by law, be set off, appropriated

                                       -7-

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         and applied by Agent against any or all of the Obligations irrespective
         of whether demand shall have been made and although such Obligations
         may be unmatured, in such manner as Agent in its sole and absolute
         discretion may determine. Within three (3) Business Days of making any
         such set off, appropriation or application, Agent agrees to notify
         Borrower thereof, provided the failure to give such notice shall not
         affect the validity of such set off or appropriation or application.
         ANY AND ALL RIGHTS TO REQUIRE AGENT OR ANY OF THE LENDERS 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 BORROWER, ARE HEREBY
         KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

         11. Private Sales.

                  (a) The Borrower recognizes that Agent may be unable to effect
         a public sale of any or all the Pledged Interests, by reason of certain
         prohibitions contained in the Securities Act of 1933, as amended, and
         applicable state securities laws or otherwise, and may be compelled to
         resort to one or more private sales thereof to a restricted group of
         purchasers which will be obliged to agree, among other things, to
         acquire such securities for their own account for investment and not
         with a view to the distribution or resale thereof. The Borrower
         acknowledges and agrees that any such private sale may result in prices
         and other terms less favorable to Agent than if such sale were a public
         sale. Agent shall be under no obligation to delay a sale of any of the
         Pledged Interests for the period of time necessary to permit the
         Borrower to register such securities for public sale under the
         Securities Act of 1933, as amended, or under applicable state
         securities laws, even if the Borrower would agree to do so.

                  (b) From and after the occurrence, and during the
         continuation, of an Event of Default, the Borrower further agrees to
         use its best efforts to do or cause to be done all such other acts as
         may be necessary to make any sale or sales of all or any portion of the
         Pledged Interests pursuant to this Section 11 valid and binding and in
         compliance with any and all other applicable requirements of law;
         provided, however, that the Borrower shall not be under any obligation
         to register the Pledged Interests for public sale under the Securities
         Act of 1933, as amended, or under applicable state securities laws. The
         Borrower further agrees that a breach of any of the covenants contained
         in this Section 11 will cause irreparable injury to Agent, that Agent
         has no adequate remedy at law in respect of such breach and, as a
         consequence, that each and every covenant contained in this Section 11
         shall be specifically enforceable against the Borrower, subject to
         bankruptcy, insolvency, moratorium, and other similar laws of general
         applicability affecting creditor's rights and general equity
         principles, and the Borrower hereby waives and agrees not to assert any
         defenses against an action for specific performance of such covenants
         except for a defense that no default has occurred with respect to the
         Obligations.

         12. Limitation on Duties Regarding Collateral. Agent's sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9- 207 of the UCC or otherwise, shall be to
deal with it in the same manner as Agent deals with similar securities and
property for its own account. Neither Agent nor any of its directors, officers,
employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Borrower, or otherwise.

                                       -8-

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         13. Financing Statements; Other Documents.

                  (a) This Pledge Agreement constitutes an authenticated record,
         and the Borrower hereby authorizes the Agent to file one or more
         financing or continuation statements, and amendments thereto, relative
         to all or any part of the Collateral, without the signature of
         Borrower, in such filing offices as the Agent shall reasonably deem
         appropriate, and the Borrower shall pay the Agent's reasonable costs
         and expenses incurred in connection therewith.

                  (b) The Borrower hereby agrees that a carbon, photographic, or
         other reproduction of this Pledge Agreement or of a financing statement
         signed by the Borrower shall be sufficient as a financing statement and
         may be filed as a financing statement in any and all jurisdictions.

                  (c) The Borrower agrees to deliver any other document or
         instrument which Agent may reasonably request in connection with the
         administration and enforcement of this Pledge Agreement or with respect
         to the Collateral for the purposes of obtaining or preserving the full
         benefits of this Pledge Agreement and of the rights and powers herein
         granted.

         14. Powers Coupled with an Interest. All authorizations and agencies
and powers herein contained with respect to the Collateral are irrevocable and
coupled with an interest.

         15. Security Interest Absolute. All rights of the Agent hereunder, the
grant of a security interest in the Collateral and all obligations of the
Borrower, shall be absolute and unconditional irrespective of (i) any lack of
validity or enforceability of the Loan Agreement, any agreement with respect to
any of the Obligations or any other agreement or instrument relating to any of
the foregoing, (ii) any change in time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to any departure from the Note or any other agreement or
instrument, (iii) any exchange, release or non-perfection of any other
collateral, or any release or amendment or waiver of or consent to or departure
from any guarantee, for all or any of the Obligations, or (iv) any other
circumstance which might otherwise constitute a defense available to (other than
the defense of indefeasible payment), or a discharge of, the Borrower in respect
of the Obligations or in respect of this Pledge Agreement.

         16. Fees and Expenses. To the extent provided in the Loan Agreement,
the Borrower shall be obligated to pay to the Agent the amount of any and all
reasonable expenses, including the reasonable fees and expenses of its counsel
and of any experts or agents which the Agent or any Lender may incur in
connection with (i) the sale of, collection from, or other realization upon, any
of the Collateral, or (ii) during the continuance of an Event of Default, the
exercise or enforcement of any of the rights of the Agent hereunder. Any such
amounts payable as provided hereunder or thereunder shall be additional
obligations secured hereby.

         17. Termination. Upon the payment in full of the Obligations, in
immediately available funds, including, without limitation, all unreimbursed
costs and expenses, for which the Borrower is responsible, of the Agent and of
each Lender, the Agent shall release the Collateral granted to the Agent as
provided for herein. However, such release by the Agent shall not be deemed to
terminate or release the Borrower from any obligation or liability under this
Pledge Agreement which specifically by its terms survives the payment in full of
the Obligations.

         18. Severability. Any provision of this Pledge Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such

                                       -9-

<PAGE>

prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         19. Paragraph Headings. The paragraph headings used in this Pledge
Agreement are for convenience of reference only and are not to affect the
construction, or be taken into consideration in interpreting, this Pledge
Agreement.

         20. No Waiver; Cumulative Remedies. Agent shall not by any act, delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in
exercising, on the part of Agent, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by Agent of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which Agent would otherwise have on any future occasion. The
rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any rights or remedies provided by law.

         21. Waivers and Amendments; Successors and Assigns; Governing Law;
Venue. None of the terms or provisions of this Pledge Agreement may be waived,
amended, or otherwise modified except by a written instrument executed by the
party against which enforcement of such waiver, amendment, or modification is
sought. This Pledge Agreement shall be binding upon the Borrower and Agent, and
the successors and assigns of each, and shall inure to the benefit of Agent and
the Lenders, and their successors and assigns, and to the benefit of the
Borrower and the Borrower's successors and permitted assigns; provided that the
Borrower shall not have any right to (i) assign this Pledge Agreement or any
interest herein, or (ii) assign any interest in the Collateral or any part
thereof, or otherwise pledge, encumber or grant any option with respect to the
Collateral or any part thereof, or any cash or property held by the Borrower as
Collateral under this Pledge Agreement if any such assignment, pledge,
encumbrance or grant would constitute a violation of the Loan Agreement. The
rights of Agent under this Pledge Agreement shall automatically be transferred
to any transferee to which Agent transfers the Note and the Loan Agreement
pursuant to the terms thereof. The construction, interpretation, validity,
enforceability and effect of all provisions of this Pledge Agreement including,
but not limited to, the payment of the Obligations and the legality of the
interest rate and other charges shall be construed and enforced in accordance
with the internal laws of the Commonwealth of Massachusetts (without regard to
conflicts of laws). The Borrower agrees to submit to non-exclusive personal
jurisdiction in Suffolk County, in the Commonwealth of Massachusetts in any
action or proceeding arising out of this Pledge Agreement and, in furtherance of
such agreement, the Borrower hereby agrees and consents that, without limiting
other methods of obtaining jurisdiction, personal jurisdiction over the Borrower
in any such action or proceeding may be obtained within or without the
jurisdiction of any court located in the Commonwealth of Massachusetts and that
any process or notice of motion or other application to any such court in
connection with any such action or proceeding may be served upon the Borrower by
registered or certified mail to or by personal service at the last known address
of the Borrower, whether such address be within or without the jurisdiction of
any such court.

         22. Executive Offices. The Borrower shall not (i) change the location
of its chief executive offices or sole place of business from the location as of
the date hereof or remove its books and records from such location, or (ii)
change its name, identity or structure if, in either case, such change is
prohibited by the Loan Agreement.

         23. Notices. Notices by Agent to the Borrower, to be effective, shall
be in writing and shall be hand-delivered or sent by Federal Express, or other
reputable national overnight courier service, or by postage pre-paid registered
or certified mail, return receipt requested, addressed to the

                                      -10-

<PAGE>

Borrower at the address indicated above, with a copy in each instance to Stroock
& Stroock & Lavan LLP, Attention: Mark A. Levy, Esq., at the address set forth
in the Loan Agreement, and shall be deemed to have been duly given or made (a)
when delivered if hand-delivered or sent by Federal Express, or other reputable
national overnight courier service, or (b) when delivered if sent by registered
or certified mail. Any communications by the Borrower to Agent may be given in
any manner set forth in the immediately preceding sentence, with a copy to
Riemer & Braunstein LLP, Attention: Kevin J. Lyons, Esq., to the addresses set
forth in the Loan Agreement.

         24. Entire Understanding. Agent acknowledges that this Pledge
Agreement, the Note and the other Loan Documents and Security Documents set
forth the entire agreement and understanding of Agent and the Borrower with
respect to the Loan and that no oral or other agreements, understanding,
representation or warranties exist with respect to the Loan, other than those
set forth in this Pledge Agreement, the Note and the other Loan Documents.

         25. Counterpart Signatures. This Pledge Agreement may be executed in
two or more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument.

         26. Governing Law. This Pledge 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 internal laws of the Commonwealth of
Massachusetts, without giving effect to principles of conflicts of law, except
insofar as formation of the Borrower under Delaware law requires Delaware law to
apply with respect to matters of authorization to enter into the transaction
contemplated by this Pledge Agreement. 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 herein. Agent or any Lender
may enforce its rights hereunder and under the other Loan Documents, including,
but not limited to, its rights to sue Borrower or to collect any outstanding
indebtedness in accordance with applicable law. It is understood and agreed that
this Pledge Agreement, and all of the other Loan Documents, were negotiated,
executed and 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.

             [The balance of this page is intentionally left blank]

                                      -11-

<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement
to be duly executed and delivered as an instrument under seal as of the date
first above written.

BORROWER:                CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.,
                         a Delaware limited partnership

                         By: Cedar Shopping Centers, Inc.,
                             its general partner

                             By:    ______________________________
                             Name:  ______________________________
                             Title: ______________________________

 AGENT:                  FLEET NATIONAL BANK,
                         a national banking association

                             By:    ______________________________
                             Name:  James L. Keough
                             Title: Director

                                      -12-<PAGE>

                    OPEN-END MORTGAGE AND SECURITY AGREEMENT

 This is an Open-End Mortgage and Security Agreement and secures future advances
       pursuant to 42PA C.S.ss.ss.ss.8143 and 8144, act. No. 126 of 1990

         KNOW ALL MEN BY THESE PRESENTS that CEDAR DUBOIS, LLC, a Delaware
limited liability company having an address at 44 South Bayles Avenue, Port
Washington, New York 11050 (hereinafter, the "Mortgagor") for consideration
paid, hereby grants, conveys, transfers, assigns and sets-over unto FLEET
NATIONAL BANK, a national banking association having an address at 100 Federal
Street, 8th Floor, Boston, Massachusetts 02110, as agent under a Loan Agreement
(hereinafter, the "Loan Agreement") dated January 30, 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", which Borrower is not a party to this Mortgage), 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, the "Agent"), with MORTGAGE COVENANTS, the Mortgaged Property (as
defined below) to secure the Obligations (as defined below).

         The terms "Mortgagor" and "Borrower" shall include, wherever the
context permits, their successors and assigns. The terms "Agent" and "Lenders"
shall include, wherever the context permits, their successors and assigns as the
holder for the time being of this Open-End Mortgage and Security Agreement, and
the Obligations hereby secured.

         This Open-End Mortgage and Security Agreement (hereinafter, the
"Mortgage") 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.

         The term "Mortgaged Property" shall mean and include all of the
following described property:

         A. Real Estate. The land more particularly described on Exhibit A which
is annexed hereto and made a part hereof (hereinafter, the "Land") together with
the improvements and other structures now or hereafter situated thereon (such
improvements being sometimes called the "Improvements") located at the
intersection of Route 255 and Commons Drive, Sandy Township, Clearfield County,
Pennsylvania, together with all rights, privileges, tenements, hereditaments,
appurtenances, easements, including, but not limited to, rights and easements
for access and egress and utility connections, and other rights now or hereafter
appurtenant thereto (hereinafter, the "Real Estate");

         B. Fixtures. All real estate fixtures or items which by agreement of
the parties may be deemed to be such fixtures, now or hereafter owned by
Mortgagor, or in which Mortgagor has or hereafter obtains an interest, and now
or hereafter located in or upon the Real Estate, or now or hereafter attached
to, installed in, or used in connection with any of the Real Estate, including,
but not limited to, any and all portable or sectional buildings, bathroom,
plumbing, heating, lighting, refrigerating, ventilating and air-conditioning
apparatus and equipment, garbage incinerators and receptacles, elevators and
elevator machinery, boilers, furnaces, stoves, tanks, motors, sprinkler and fire
detection and extinguishing systems, doorbell and alarm systems, window shades,
screens, awnings, screen doors, storm and other detachable windows and doors,
mantels, partitions, built-in cases, counters and other fixtures whether or not
included in the foregoing enumeration (hereinafter, the "Fixtures");

<PAGE>

         C. Additional Appurtenances. All bridges, easements, rights of way,
licenses, privileges, hereditaments, permits and appurtenances hereafter
belonging to or enuring to the benefit of the Real Estate and all right, title
and interest of Mortgagor in and to the land lying within any street or roadway
adjoining any of the Real Estate and all right, title and interest of Mortgagor
in and to any vacated or hereafter vacated streets or roads adjoining any of the
Real Estate and any and all reversionary or remainder rights (hereinafter, the
"Additional Appurtenances");

         D. Awards. All of the right, title and interest of Mortgagor in and to
any award or awards heretofore made or hereafter to be made by any municipal,
county, state or federal authorities to the present or any subsequent owners of
any of the Real Estate or the Land, or the Improvements, or the Fixtures, or the
Additional Appurtenances, or the Leases or the Personal Property, including,
without limitation, any award or awards, or settlements or payments, or other
compensation hereafter made resulting from (x) condemnation proceedings or the
taking of the Real Estate, or the Land, or the Improvements, or the Fixtures, or
the Additional Appurtenances, or the Leases or the Personal Property, or any
part thereof, under the power of eminent domain, or (y) the alteration of grade
or the location or discontinuance of any street adjoining the Land or any
portion thereof, or (z) any other injury to or decrease in value of the
Mortgaged Property (hereinafter, the "Awards");

         E. Leases. All leases now or hereafter entered into of the Real Estate,
or any portion thereof, and all rents, issues, profits, revenues, earnings and
royalties therefrom, and all right, title and interest of Mortgagor thereunder,
including, without limitation, purchase or sale options, cash, letters of
credit, or securities deposited thereunder to secure performance by the tenants
or occupants of their obligations thereunder, whether such cash, letters of
credit, or securities are to be held until the expiration of the terms of such
leases or occupancy agreements or applied to one or more of the installments of
rent coming due prior to the expiration of such terms including, without
limitation, the right to receive and collect the rents and other payments due
thereunder (hereinafter, the "Leases");

         F. Purchase and Sale Agreements. All purchase and sale agreements now
or hereafter entered into of the Real Estate, or any portion thereof, or any
condominium units into which the Real Estate may be converted including, without
limitation, cash, letters of credit or securities deposited thereunder to secure
performance by the purchasers of their obligations thereunder (hereinafter, the
"Purchase and Sale Agreements"); and

         G. Personal Property. All tangible and intangible personal property now
owned or at any time hereafter acquired by Mortgagor of every nature and
description, and whether or not used in any way in connection with the Real
Estate, the Fixtures, the Additional Appurtenances, the Purchase and Sale
Agreements or any other portion of the Mortgaged Property, including, without
limitation express or implied upon the generality of the foregoing, all
Equipment, Goods, Inventory, Fixtures, Accounts, Instruments, Documents and
General Intangibles (as each such capitalized term is defined in the Uniform
Commercial Code in effect in the Commonwealth of Pennsylvania) and further
including, without any such limitation, the following whether or not included in
the foregoing: materials; supplies; furnishings; chattel paper; money; bank
accounts; security deposits; utility deposits; any insurance or tax reserves
deposited with Agent; any cash collateral deposited with Agent; claims to
rebates, refunds or abatements of real estate taxes or any other taxes; contract
rights; plans and specifications; licenses, permits, approvals and other rights;
the rights of Mortgagor under contracts with respect to the Real Estate or any
other portion of the Mortgaged Property, or the Project; signs, brochures,
advertising, the name by which the Mortgaged Property is known and any variation
of the words thereof, and good will; copyrights, service marks, and all goodwill
associated therewith; and trademarks; all proceeds paid for any damage or loss

                                      -2-
<PAGE>

to all or any portion of the Real Estate, the Fixtures, the Additional
Appurtenances, any other Personal Property or any other portion of the Mortgaged
Property (hereinafter, the "Insurance Proceeds"); all Awards; all Leases; all
Purchase and Sale Agreements; all books and records; and all proceeds, products,
additions, accessions, substitutions and replacements to any one or more of the
foregoing (hereinafter, collectively, the "Personal Property").

         The term "Obligations" shall mean and include:

         A. The Guaranteed Obligations, as such term is defined in that certain
Guaranty of even date executed by the Mortgagor 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 Mortgagor under and pursuant to this
Mortgage, the Guaranty, the Loan Documents, or any other document executed in
connection therewith;

         C. The payment of all costs, expenses, legal fees and liabilities
incurred by Agent and the Lenders in connection with the enforcement of any of
Agent's or any Lenders' rights or remedies under this Mortgage, 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 each
liability and obligation of Mortgagor to Agent or any Lender under any one or
more of the Loan Documents and any 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.

         Mortgagor hereby grants to Agent, on behalf of the Lenders, a
continuing security interest in all of the Mortgaged Property in which a
security interest may be granted under the Uniform Commercial Code as such is in
effect in the Commonwealth of Pennsylvania, including, without limitation, the
Fixtures, the Personal Property and the Purchase and Sale Agreements, together
with all proceeds and products, whether now or at any time hereafter acquired
and whether or not used in any way in connection with the development,
construction, marketing or operation of the Real Estate, or in connection with
the Project, to secure all Obligations.

         This instrument is intended to take effect as a mortgage pursuant to
Pennsylvania law, and as a security agreement pursuant to the UCC and is to be
filed with the Office of the Recorder of Deeds of Clearfield County,
Pennsylvania as a fixture financing statement pursuant to the UCC.

         Mortgagor covenants, warrants, represents and agrees with Agent, its
successors and assigns, and the Lenders, that:

1.       Title. Mortgagor has good record title to the Mortgaged Property and
         has good right, full power and lawful authority to grant and convey the
         same in the manner aforesaid; and that the Mortgaged Property are free
         and clear of all encumbrances and exceptions, except for the Permitted
         Title Exceptions, if any, as set forth on Exhibit B which is annexed
         hereto and made a part hereof. Mortgagor shall make any further
         assurances of title that Agent may in good faith require including,
         without limitation, such further instruments as may be requested by
         Agent to confirm the assignment to Agent of all Awards.

                                      -3-
<PAGE>

2.       Performance of Obligations. Mortgagor shall perform and observe all of
         the obligations and conditions set forth in each of the Guaranty, this
         Mortgage, the Assignment of Leases and Rents, the Environmental
         Indemnity, and each of the other Loan Documents or other agreements, if
         any, executed by Mortgagor in connection with the Loan.

3.       Protection and Maintenance. Mortgagor shall protect and maintain, or
         cause to be maintained, in good, first-class and substantial order,
         repair and tenantable condition at all times, the buildings and
         structures now standing or hereafter erected on the Mortgaged Property,
         and any additions and improvements thereto, and all Personal Property
         now or hereafter situated therein, and the utility services, the
         parking areas and access roads, and all building fixtures and equipment
         and articles of personal property now or hereafter acquired and used in
         connection with the operation of the Mortgaged Property. Mortgagor
         shall promptly replace any of the aforesaid which may become lost,
         destroyed or unsuitable for use with other property of first-class
         character.

4.       Insurance Coverages. Mortgagor shall insure the Mortgaged Property and
         the operation thereof with such coverages and in such amounts as are
         required by the provisions of the Loan Agreement and shall at all times
         keep such insurance in full force and effect and pay all premiums
         therefor in accordance with the terms and conditions of the Loan
         Agreement. The original or certified copies of all such policies of
         insurance (or certificates or binders thereof issued by the insurer in
         form, content and manner of execution reasonably satisfactory to Agent)
         shall be delivered to Agent and the Lenders, and Mortgagor shall
         deliver to the Agent and the Lenders a new policy or certified copy
         thereof (or such a certificate) as replacement for an expiring policy
         (or such a certificate) required to be deposited hereunder together
         with proof of payment of the premiums therefor in accordance with the
         terms and conditions of the Loan Agreement. Mortgagor hereby
         irrevocably appoints Agent its true and lawful attorney-in-fact, with
         full power of substitution, to assign any such policy in the event of
         the foreclosure of this Mortgage.

5.       Insurance Proceeds. The proceeds of any hazard insurance shall be
         applied in accordance with Article 14 of the Loan Agreement relating to
         the application of insurance proceeds, which provisions are expressly
         incorporated by reference herein. Notwithstanding anything in this
         Section 5 to the contrary, however, if the insurer denies liability to
         Mortgagor, Mortgagor shall not be relieved of any obligation under
         Section 3 of this Mortgage.

6.       Eminent Domain. The Awards of damages on account of any condemnation
         for public use of, or injury to, the Mortgaged Property shall be
         applied in accordance with Article 14 of the Loan Agreement relating to
         the application of condemnation proceeds, which provisions are
         expressly incorporated by reference herein.

7.       No Waste; Compliance With Law. Mortgagor shall not commit or suffer any
         intentional waste of the Mortgaged Property, or any portion thereof, or
         any violation of any law, rule, regulation, ordinance, license or
         permit, or the requirements of any licensing authority affecting the
         Mortgaged Property or any business conducted thereon, and shall not
         commit or suffer any material (for purposes of this section, "material"
         shall mean an activity in excess of $500,000.00) demolition, removal or
         alteration of any of the Mortgaged Property (except for customary
         renovations or alterations performed in connection with Approved Leases
         or the replacement of Fixtures and Personal Property in the ordinary
         course of business, so long as items of comparable value and quality
         are installed free and clear of liens in favor of any other party),
         without the express prior written consent of Agent in each instance
         which consent shall not be unreasonably withheld or delayed, and shall
         not violate nor suffer the violation of the covenants and agreements,
         if any, of record against the Mortgaged Property, and in all respects

                                      -4-
<PAGE>

         Mortgagor shall do all things necessary to comply with, and keep in
         full force and effect all licenses, permits and other governmental
         authorizations for the operation of the Mortgaged Property for its
         intended purposes, including, without limitation express or implied,
         the licenses, permits and authorizations referenced in the Loan
         Agreement.

8.       Environmental and Related Matters; Indemnification. Mortgagor shall at
         all times comply with all of the terms, conditions and provisions
         imposed on the Indemnitors (as defined in the Environmental Indemnity)
         under the Environmental Indemnity and indemnify, exonerate and save
         harmless Agent, and each of the Lenders and each other Indemnified
         Party (as defined in the Environmental Indemnity) in accordance with
         the terms of the Environmental Indemnity.

9.       Payment of Taxes and Prevention of Liens. Mortgagor shall pay in
         accordance with the terms of the Loan Agreement, all taxes, assessments
         and charges of every nature and to whomever assessed that may now or
         hereafter be levied or assessed upon the Mortgaged Property or any part
         thereof, or upon the rents, issues, income or profits thereof or upon
         the lien or estate hereby created, whether any or all of said taxes,
         assessments or charges be levied directly or indirectly or as excise
         taxes or as income taxes. Mortgagor may apply for tax abatements and
         prosecute diligently and in good faith claims for refund and any such
         taxes, assessment, and charges, provided the requirements of Section
         8.2.3 of the Loan Agreement are satisfied.

10.      Due On Sale; No Other Encumbrances; No Transfer of Ownership Interests;
         Failure to Comply with Permitted Exceptions. The Borrower shall comply
         with the terms and conditions of the Loan Agreement with respect to
         Permitted Transactions.

11.      Agent's and Lenders' Rights. If Mortgagor shall neglect or refuse: (a)
         to maintain and keep in good repair the Mortgaged Property or any part
         thereof as required by this Mortgage or the Loan Agreement, taking into
         account all applicable grace and cure periods, or (b) to maintain and
         pay the premiums for insurance which may be required by this Mortgage
         or the Loan Agreement, taking into account all applicable grace and
         cure periods, or (c) subject to Mortgagor's right to contest as set
         forth in the Loan Agreement, to pay and discharge all taxes of
         whatsoever nature, assessments and charges of every nature and to
         whomever assessed, as required by this Mortgage or the Loan Agreement,
         taking into account all applicable grace and cure periods, or (d) to
         pay the sums required to be paid by this Mortgage or the Loan
         Agreement, taking into account all applicable grace and cure periods,
         or (e) to satisfy any other terms or conditions of this Mortgage, or
         any instrument secured hereby, taking into account all applicable grace
         and cure periods, Agent may, at its election in each instance, but
         without any obligation whatsoever to do so, upon thirty (30) days prior
         written notice (except in the case of (i) an emergency where there is
         danger to person or property, or (ii) required insurance coverage would
         lapse, or (iii) an Event of Default exists, in each of which events no
         notice shall be required except notice of such Event of Default), cause
         such repairs or replacements to be made, obtain such insurance or pay
         said taxes, assessments, charges, and sums, incur and pay reasonable
         amounts in protecting its rights hereunder and the security hereby
         granted, pay any balance due under any conditional agreement of sale
         (or lease) of any property included as a part of the Mortgaged
         Property, and pay any amounts as Agent deems reasonably necessary or
         appropriate to satisfy any term or condition of this Mortgage, which
         Mortgagor shall have failed to satisfy, or to remedy any breach of such
         term or condition, and any amounts or expenses so paid or incurred,
         together with interest thereon from the date of payment by Agent or the
         Lenders at the Default Rate as provided in the Loan Agreement shall be
         immediately due and payable by Mortgagor to Agent and the Lenders and
         until paid shall be secured hereby equally and ratably, and the

                                      -5-
<PAGE>

         same may be collected as part of said principal debt in any suit
         hereon. No payment by Agent or the Lenders shall relieve Mortgagor from
         any default hereunder or impair any right or remedy of Agent consequent
         thereon.

12.      Tax Reserve and Insurance Reserve. Mortgagor shall, upon the request of
         Agent, from time to time while an Event of Default is existing, pay to
         Agent on dates upon which installments of interest are payable under
         the Loan Agreement, such amount as Agent from time to time estimates as
         necessary to create and maintain a reserve fund from which to pay
         before the same become due: (a) all taxes, assessments, liens and
         charges on or against the Mortgaged Property, and (b) all premiums for
         insurance policies which are required by this Mortgage. Such payments,
         if so requested, shall be invested in a non-interest bearing account
         which shall be held by Agent as cash collateral. Any part or all of
         such reserve fund may be applied, at the option of Agent, to (i) cure
         the existing Event of Default, (ii) pay down any part of the
         indebtedness hereby secured, or (iii) pay to the taxing authority or
         the insurer the applicable real estate taxes or insurance premiums then
         due on behalf of Mortgagor. Payments from such reserve fund for said
         purposes may be made by Agent in accordance with this Section 12 even
         though subsequent owners of the property described herein may benefit
         thereby. In refunding any part of said reserve fund, Agent may deal
         with whomever is the record owner of such property at that time.

13.      Certain Expenses. If any action or proceeding is commenced, including,
         without limitation, an action to foreclose this Mortgage or to collect
         the debt hereby secured, to which action or proceeding Agent or any
         Lender is made a party by reason of the execution of this Mortgage, or
         by reason of any obligation which it secures, or by reason of entry or
         any other action under this Mortgage, or if in Agent's reasonable
         judgment it becomes necessary in connection with legal proceedings or
         otherwise to defend or uphold the mortgage hereby granted or the lien
         hereby created or any act taken to defend or uphold the mortgage hereby
         granted or the lien hereby created or any act taken under this
         Mortgage, all sums reasonably paid or incurred by Agent or any Lender
         for the expense of any litigation or otherwise, in connection with any
         rights created by this Mortgage or any other Loan Document, shall be
         paid by Mortgagor, or may at the option of Agent, if not so paid, be
         added to the debt secured hereby and shall be secured hereby equally
         and ratably and shall bear interest until paid at the Default Rate set
         forth in the Loan Agreement.

14.      Regarding Leases. Mortgagor shall comply with the terms and conditions
         set forth in the Loan Agreement with respect to any leases or occupancy
         agreements with respect to the Mortgaged Property.

15.      Declaration of Subordination. At the option of Agent, which may be
         exercised at any time or from time to time, by written notice to
         Mortgagor and to any applicable tenant, this Mortgage shall become
         subject and subordinate, in whole or in part (but not with respect to
         priority of entitlement to insurance proceeds or condemnation
         proceeds), to any and all leases of all or any part of the Mortgaged
         Property upon the execution by Agent and recording or filing thereof,
         at any time hereafter in the appropriate official records of the
         county/registry of deeds wherein the Mortgaged Property are situated of
         a unilateral declaration to that effect.

16.      Further Assignment by Mortgagor. Mortgagor hereby further assigns to
         Agent as security for the Obligations the lessor's interests in any or
         all leases, now or hereafter outstanding, and to the extent it may
         lawfully do so Mortgagor's interests in all agreements, contracts,
         licenses and permits, now or hereafter outstanding, affecting all or
         any portion of the Mortgaged Property. Mortgagor shall execute,
         acknowledge and deliver such further or confirmatory assignments
         thereof, by instruments in form reasonably satisfactory to the Agent,
         as Agent may reasonably require. Mortgagor hereby authorizes Agent in

                                      -6-
<PAGE>

         the event of foreclosure, to sell and assign said interests to the
         purchaser at foreclosure, but neither such assignment nor any such
         future assignment shall be construed as binding Agent to any lease,
         agreement, contract, license or permit so assigned, or to impose upon
         Agent any obligations with respect thereto. Mortgagor hereby
         irrevocably appoints Agent, or any agent designated by Agent, the true
         and lawful attorney-in-fact of Mortgagor, with full power of
         substitution, to execute, acknowledge and deliver any such assignment
         on behalf of Mortgagor which Mortgagor fails or refuses to do. In the
         event of any conflict between the provisions of this Section and the
         provisions of the Collateral Assignment of Leases and Rents, or any of
         the other Loan Documents, the provisions of the Collateral Assignment
         of Leases and Rents shall govern.

17.      UCC Filing. Mortgagor, upon Agent's written request, shall promptly
         cause this Mortgage and any required financing statements to be
         recorded and re-recorded, registered and re-registered, filed and
         re-filed at such times and places as may be required by law or
         reasonably deemed advisable by Agent to create, preserve or protect the
         priority hereof and of any lien created hereby upon the Mortgaged
         Property or any part thereof; and Mortgagor shall from time to time do
         and cause to be done all such things as may be required by Agent, or
         required by law, including all things which may from time to time be
         necessary under the Uniform Commercial Code of the Commonwealth of
         Pennsylvania to fully create, preserve and protect the priority hereof
         and of any lien created hereby upon said property. Mortgagor hereby
         irrevocably appoints Agent, or any agent designated by Agent, the true
         and lawful attorney-in-fact of Mortgagor, with full power of
         substitution, to execute, acknowledge and deliver any such things on
         behalf of Mortgagor which Mortgagor fails or refuses to do.

18.      Right to Deal with Successor. Agent may, without notice to any person,
         deal with any successor in interest of Mortgagor herein regarding this
         Mortgage in all respects as it might deal with Mortgagor herein,
         without in any way affecting the liability hereunder of any predecessor
         in interest of the person so dealt with; and no sale of the premises
         hereby mortgaged, nor any forbearance on the part of Agent, shall
         operate to release, discharge, modify, change or affect the original
         liability of any predecessor in interest of the equity owner at the
         time of such sale or forbearance.

19.      Acceleration of Debt. If there is an Event of Default, or if an event
         occurs which pursuant to which Agent is entitled to exercise its rights
         and remedies under the Guaranty, or if Mortgagor or Borrower delivers
         to Agent a notice pursuant to 42 Pa.C.S.A ss.8143 electing to limit the
         advances under the Loan Agreement, then, at the option of Agent, the
         entire indebtedness hereby secured shall become immediately due and
         payable without further notice.

20.      Additional Rights of Agent.

         20.1 Enter and Perform. Mortgagor authorizes Agent, in addition to all
other rights granted by law or by this Mortgage, or by any of the other
instruments executed in connection herewith, whenever and as long as any Event
of Default shall exist and remain uncured, and without notice beyond the notice,
if any, required to be given by the terms of such instrument, to enter and take
possession of all or any part of the Mortgaged Property and to use, lease,
operate, manage and control the same and conduct the business thereof, and
perform lessor's obligations under any lease or the seller's obligations under
any Purchase and Sale Agreement or Mortgagor's obligations under any other
agreement affecting all or any part of the Mortgaged Property, perform the
obligations of the seller under any contracts, and collect the rents, profits
and all receipts of every nature therefrom as Agent shall deem best.

                                      -7-
<PAGE>

         20.2 Repairs and Improvements. Upon every such entry pursuant to
Section 20.1, Agent may from time to time at the expense of Mortgagor make all
such repairs, replacements, alterations, additions and improvements to the
Mortgaged Property as Agent may deem necessary, but in no event shall Agent be
obligated to do so, and may, but shall not be obligated to, exercise all rights
and powers of Mortgagor, either in the name of Mortgagor, or otherwise as Agent
shall determine. Without limitation, express or implied, upon the generality of
the foregoing, Agent shall have the right to do all things necessary in order to
keep in full force and effect all applicable licenses, permits and
authorizations and any amendments thereto.

         20.3 Pay Costs and Expenses. Upon such entry pursuant to Section 20.1,
Agent may, at its option, but without any obligation to do so, do any one or
more of the following: pay and incur all expenses necessary for the holding and
operating of the Mortgaged Property, the conduct of any business thereon, the
maintenance, repair, replacement, alteration, addition and improvement of the
Mortgaged Property, including without limitation payments of taxes, assessments,
insurance, wages of employees connected with the Mortgaged Property or any
business conducted thereon, charges and reasonable compensation for services of
Agent, its attorneys and accountants and all other persons engaged or employed
in connection with the Mortgaged Property or of any business conducted thereon
and, in addition, Agent, at its option, may, but shall not be obligated to, make
payments or incur liability with respect to obligations arising prior to the
date it takes possession.

         20.4 Add to Secured Indebtedness. All obligations so paid or incurred
by Agent pursuant to Section 20.3 shall be reimbursed or paid for by Mortgagor
upon demand, and prior to the repayment thereof shall be added to the debt
secured hereby and shall bear interest at the Default Rate, and shall be secured
hereby equally and ratably. Agent may also reimburse itself therefor from the
income or receipts of the Mortgaged Property or any business conducted thereon,
or from the sale of all or any portion of the Mortgaged Property. Agent may also
apply toward any of the Obligations any tax or insurance reserve account,
deposit or any sum credited or due from Agent to Mortgagor without first
enforcing any other rights of Agent against Mortgagor or against any endorser or
other guarantor or against the Mortgaged Property.

         20.5 Attorney-In-Fact. Mortgagor hereby irrevocably constitutes and
appoints Agent, or any agent designated by Agent, for so long as this Mortgage
remains undischarged of record, as attorney-in-fact of Mortgagor to execute,
acknowledge, seal and deliver all instruments, agreements, deeds, certificates
and other documents of every nature and description in order to carry out or
implement the exercise of Agent's rights under this Section 20.

21.      Setoff. Subject to the terms of this Section 21, Mortgagor 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 Mortgagor 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 Mortgagor 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 MORTGAGOR, ARE HEREBY KNOWINGLY,
         VOLUNTARILY AND IRREVOCABLY WAIVED.

                                      -8-
<PAGE>

22.      Contest of Laws. Mortgagor shall have the right to contest by
         appropriate legal proceedings the validity of any legal requirements
         affecting the Mortgaged Property in accordance with the provisions of
         Section 9.1 of the Loan Agreement.

23.      Notices. Any demand, notice or request by either party to the other
         shall be given in the manner provided therefor in the Loan Agreement.

24.      Agent/Lender Not Obligated; Cumulative Rights. Nothing in this
         instrument shall be construed as obligating Agent or any Lender to take
         any action or incur any liability with respect to the Mortgaged
         Property or any business conducted thereon, and all options given to
         Agent are for its benefit and shall and may be exercised in such order
         and in such combination as Agent in its sole discretion may from time
         to time decide.

25.      Severability. In case any one or more of the provisions of this
         Mortgage, the Guaranty, the Assignment of Leases and Rents, the
         Environmental Indemnity, or any of the other Loan Documents, or any
         other agreement now or hereafter executed in connection with any one or
         more of the foregoing are held to be invalid, illegal or unenforceable
         in any respect, such invalidity, illegality or unenforceability shall
         not affect any other provision hereof. Each of the provisions of every
         such agreement, document or instrument shall be enforceable by Agent to
         the fullest extent now or hereafter not prohibited by applicable law.

26.      No Waiver. No consent or waiver, express or implied, by Agent to or of
         any Default by Mortgagor shall be construed as a consent or waiver to
         or of any other Default at the same time or upon any future occasion.

27.      Foreclosure and Other Remedies. From and after the occurrence of and
         during the continuance of an Event of Default, Agent may institute an
         action of mortgage foreclosure, or take such other action at law or in
         equity for the enforcement of this Mortgage and realization on the
         mortgage security or any other security herein or elsewhere provided
         for, as the law may allow, and may proceed therein to final judgment
         and execution for the entire unpaid balance of the indebtedness secured
         hereby, with interest at the rate(s) stipulated in the Loan Agreement,
         together with all other sums due in accordance with the provisions of
         the Loan Agreement, including all sums which may be advanced after the
         date of this Mortgage, all sums which may have been advanced by the
         Agent for taxes, water or sewer rents, other lienable charges or
         claims, insurance or repairs or maintenance of the Mortgaged Property
         after the date of this Mortgage (including the period after the entry
         of any judgment in mortgage foreclosure or other judgement entered
         pursuant to this Mortgage or the Loan Agreement), and all costs of
         suit, including reasonable counsel fees. From and after the occurrence
         of and during the continuance of an Event of Default, Mortgagor
         authorizes Agent at its option to foreclose this Mortgage subject to
         the rights of any tenants of the Mortgaged Property, and the failure to
         make any such tenants parties to any such foreclosure proceedings and
         to foreclose their rights will not be asserted by Mortgagor as a
         defense to any proceedings instituted by Agent to recover the
         indebtedness secured hereby or any deficiency remaining unpaid after
         the foreclosure sale of the Mortgaged Property.

         In connection with the exercise of Agent's rights above, Mortgagor
         hereby authorizes and empowers any attorney of any court of record in
         the Commonwealth of Pennsylvania or elsewhere, as attorney for Agent
         and all persons claiming under or through Agent, to appear for and
         confess judgment in ejectment against Mortgagor for the possession of
         the Mortgaged Property and to appear for and confess judgment against

                                      -9-
<PAGE>

         Mortgagor and against all persons claiming under or through Mortgagor,
         in favor of Agent, for recovery by Agent of possession thereof, for
         which this Mortgage, or a copy thereof verified by affidavit, shall be
         a sufficient warrant; and thereupon a writ of possession may
         immediately issue for possession of the Mortgaged Property, without any
         prior writ or proceeding whatsoever and without any stay of execution.
         If for any reason after such action has been commenced it shall be
         discontinued, or possession of the Mortgaged Property shall remain in
         or be restored to Mortgagor, Agent shall have the right for the same
         default or any subsequent default to bring one or more further actions
         as above provided to recover possession of the Mortgaged Property.
         Agent may confess judgment in ejectment therein before or after the
         institution of proceedings to foreclose this Mortgage or to enforce the
         Loan Documents, or after entry of judgment on this Mortgage or on the
         other Loan Documents executed in connection therewith, or after a
         sheriff's sale of the Mortgaged Property in which Agent or any Lender
         is the successful bidder. The authorization to pursue such proceedings
         for obtaining possession is an essential part of the enforcement of
         this Mortgage, or the other Loan Documents, and shall survive any
         execution sale to Agent.

28.      Post-Judgment Remedies. Mortgagor authorizes Agent, at its option after
         entry of any judgment in mortgage foreclosure pursuant to this Mortgage
         and/or any judgment, by confession or otherwise, pursuant to the Loan
         Agreement, to petition the court in which such judgment was entered to
         reassess damages and/or modify such judgment to include (i) all sums
         which may have been advanced or paid by Agent or any Lender after the
         entry of such judgment for, or are otherwise due and payable for,
         taxes, water and sewer rents, other lienable charges or claims,
         attorneys' fees and costs, insurance for or repairs to or maintenance
         of the Mortgaged Property and (ii) additional accrued interest at the
         highest rate of interest provided for under the Loan Agreement.

29.      Waivers By Mortgagor. Mortgagor, to the fullest extent that Mortgagor
         may do so, hereby: (a) agrees that Mortgagor will not at any time
         insist upon, plead, claim or take the benefit or advantage of any law
         now or hereafter in force providing for any appraisement, valuation,
         stay or extension, or any redemption after foreclosure sale, and waives
         and releases all rights of redemption after foreclosure sale,
         valuation, appraisement, stay of execution, notice of election to
         mature or declare due the debt secured hereby; and (b) waives all
         rights to a marshalling of the assets of Mortgagor, including the
         Mortgaged Property, or to a sale in inverse order of alienation in the
         event of a sale hereunder of the Mortgaged Property, and agrees not to
         assert any right under any statute or rule of law pertaining to the
         marshalling of assets, sale in inverse order of alienation, or other
         matters whatever to defeat, reduce or affect the right of Agent under
         the terms of this Mortgage to a sale of the Mortgaged Property.

30.      Business Loan; Not Personal Residence. Mortgagor covenants, warrants
         and represents that all of the proceeds of the Loan secured hereby
         shall be used for business or commercial purposes, none of the proceeds
         of the Loan secured hereby shall be used for personal, family or
         household purposes, and that no individual liable for the Loan resides
         or intends to reside in any portion of the Mortgaged Property.

31.      Certification. The undersigned hereby certifies that Mortgagor is a
         duly organized, validly existing limited liability company organized
         and in good standing under the laws of the State of Delaware, and that
         the execution and delivery hereof and of all of the other instruments
         executed in connection herewith by Mortgagor has been duly authorized
         by all requisite limited liability company actions of Mortgagor.

                                      -10-
<PAGE>

32.      Headings. Headings and captions in this Mortgage are for convenience
         and reference only and the words and phrases contained therein shall in
         no way be held to explain, modify, amplify or aid in the
         interpretation, construction or meaning of any of the provisions
         hereof.

33.      Time of Essence. Time shall be of the essence of each and every
         provision of this Mortgage and each of the other instruments executed
         herewith.

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

         34.1 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.

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

         34.3 Governing Law. This Mortgage, except as otherwise provided in
Section 34.4, 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 Mortgagor under Delaware law requires
Delaware law to apply with respect to matters of authorization to enter into the
transaction contemplated by this Mortgage.

         34.4 Exceptions. Notwithstanding the foregoing choice of law:

                  (a)      the procedures governing the enforcement by Agent and
                           each of the Lenders of its foreclosure and other
                           remedies against Mortgagor under this Mortgage and
                           under the other Loan Documents with respect to the
                           Mortgaged 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 this Mortgage and
                           the other Loan Documents with respect to the
                           Mortgaged 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
                           Mortgaged Property as such terms are used in this
                           Mortgage, the Environmental Indemnity and the other
                           Loan Documents.

                                      -11-
<PAGE>

         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 34.4, 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 Mortgage, 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
         Mortgagor or to collect any outstanding indebtedness in accordance with
         applicable law.

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

         34.6 JURY TRIAL WAIVER. MORTGAGOR, 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 MORTGAGE, ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS MORTGAGE 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 MORTGAGOR, AGENT AND
EACH OF THE LENDERS TO ENTER INTO THE TRANSACTIONS CONTEMPLATED HEREBY.

35.      Advance Money Mortgage. This Mortgage secures future advances made
         pursuant to the Loan Agreement, which future advances are guarantied by
         the Mortgagor pursuant to the Guaranty. Without limiting the foregoing,
         this Mortgage secures all advances made by Agent or any Lender of any
         kind or nature described in 42 Pa. C.S.ss.8144. The maximum principal
         amount that may be secured by this Mortgage is $100,000,000.00, plus
         all advances made pursuant to any provisions of the Mortgage; provided
         that in no event shall any Lender be obligated to advance in excess of
         the stated principal amount of the Note evidencing the indebtedness
         secured hereby. If Mortgagor sends a written notice to Agent or any
         Lender which purports to limit the indebtedness secured by this
         Mortgage and to release the obligation of Agent or any Lender to make
         any additional advances, such notice shall be ineffective as to any
         future advances made: (i) to enable completion of Improvements on the
         Mortgaged Property for which the Loan secured hereby was originally
         made; (ii) to pay taxes, assessments, maintenance charges and insurance
         premiums; (iii) for costs incurred for protection of the Mortgaged
         Property or the lien of this Mortgage; (iv) expenses incurred by Agent
         or any Lender by reason of a default of Mortgagor hereunder or under
         the Loan Documents; and (v) any other costs incurred by Agent or any
         Lender to protect and preserve the Mortgaged Property. It is the
         intention of the parties hereto that any such advance made by Agent or
         any Lender after any such notice by Mortgagor shall be secured by the
         lien of this Mortgage on the Mortgaged Property.

             [The balance of this page is intentionally left blank]

                                      -12-
<PAGE>

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

                          MORTGAGOR: 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:

                                      -13-
<PAGE>

                  EXHIBIT "A" ANNEXED TO AND MADE A PART OF THE
                  ---------------------------------------------
                    OPEN-END MORTGAGE AND SECURITY AGREEMENT
                    ----------------------------------------

                                LEGAL DESCRIPTION
                                -----------------

                                 (See Attached)

                                      -14-
<PAGE>

                  EXHIBIT "B" ANNEXED TO AND MADE A PART OF THE
                  ---------------------------------------------
                    OPEN-END MORTGAGE AND SECURITY AGREEMENT
                    ----------------------------------------

                           PERMITTED TITLE EXCEPTIONS
                           --------------------------

              Those matters noted in Schedule B, Part I, of Agent's
                           Title Insurance Loan Policy
   (___________________ Title Insurance Company Policy Number _______________)

                                      -15-

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