Document:

Prepared and filed by St Ives Burrups

 Exhibit 10.70

TENTH AMENDMENT TO LOAN DOCUMENTS

     THIS TENTH AMENDMENT TO LOAN DOCUMENTS ("Amendment") dated as of February 27, 2004, is made by and among TB WOOD'S INCORPORATED, individually and as Agent under the Borrower Agency Agreement (the "Borrower Agent") and PNC BANK, NATIONAL ASSOCIATION, a national banking association, as Agent for the Banks under the Credit Agreement referred to herein (the "Agent") and PNC BANK, NATIONAL ASSOCIATION, WACHOVIA BANK (assuccessor to First Union National Bank)and NATIONAL CITY BANK OF PENNSYLVANIA, as the Banks.

     Reference is made to the Revolving Credit Agreement dated October 10, 1996, by and among, after giving effect to all of the following amendments: (a) (i) TB Wood's Incorporated, a Pennsylvania corporation, (ii) Plant Engineering Consultants, Inc., a Tennessee corporation ("Plant Engineering"), (iii) TB Wood's Enterprises, Inc., a Delaware corporation, (iv) Industrial Blaju, S.A., de C.V. Mexico City, Mexico, a Mexican corporation (successor to TB Wood's Mexico, S.A. de C.V. f/k/a Grupo Blaju, S.A., de C.V.), (v) TB Wood's Canada, Ltd., an Ontario corporation, (vi) Berges Electronic GmbH, and (vii) Berges Electronic, S.r.l. (such corporations listed in (i) through (vii) being the "Borrowers"), and
(b) PNC Bank, National Association, as Agent and the Banks party thereto, as amended on April 7, 1997, January 20, 1998, April 24, 1998, July 21, 1999, November 8, 1999, February 25, 2002 (with an effective date of December 28, 2001), April 30, 2002, March 31, 2003 (with an effective date of March 28, 2003) and January 2, 2004 (with an effective date of December 31, 2003) (as so amended, the "Agreement") pursuant to which the Banks extended to the Borrowers a revolving line of credit in the amount of $46,000,000.  The obligations under the Agreement and the Loan Documents are evidenced by the Borrowers' Notes payable to the Banks.  (Capitalized terms used herein not otherwise defined shall have the meanings provided for in the Agreement.)

 

     Pursuant to this Amendment, certain financial covenants shall be amended and the Borrower shall be required to deliver additional collateral for Obligations, all as set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree, effective as of January 2, 2004, unless otherwise stated, as follows:

     1.        Amendment
to Agreement.

     1.1      Reduction of Commitments.
    The Commitments are being reduced to Thirty-six Million Dollars ($36,000,000.00)
    in the aggregate, and, accordingly, Schedule 1.1(B) (Amended 2003) is hereby
    replaced with Schedule 1.1(B) (Amended 2004) attached hereto and made a part
    hereof, and the defined term "Commitment" in Section 1.1 of the
    Agreement is hereby amended and restated as follows:

	 	               Commitment shall mean, as to any Bank at any time, the amount initially set forth opposite its name on Schedule 1.1(B) (Amended 2004) in the column labeled "Amount of Commitment," and thereafter on Schedule I to the most recent Assignment and Assumption Agreement, as superseded by Schedule 1.1(B)(Amended 2004) and Commitments shall mean the aggregate Commitments of all of the Banks.

     1.2      Interest Rates.

          (a)      Section 1.1 is amended by adding the defined term "Applicable Margin", as follows, and replacing such defined term throughout the Agreement:

	 	     Applicable Margin shall mean: (i) with respect to a Loan under the Base Rate Option, one-half percent (.50%) per annum and (ii) with respect to a Loan under the Euro-Rate Option, three percent (3.0%) per annum.

          (b)      Section 4.1.1 of the Agreement is hereby amended and restated to read in its entirety as follows:

2

                    4.1.1      Revolving Credit Interest Rate Options.

                    The Borrowers shall have the right to select from the following Interest Rate Options applicable to the Loans; provided, however, the only Interest Rate Option applicable to the Swing Loans shall be the Base Rate Option:

	 	 	 	 	(i)      Base Rate Option:  A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate;

	 	 	 	 	 
	 	 	 	 	(ii)      Revolving Credit Euro-Rate Option:  A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the Euro-Rate plus the Applicable Margin.

     1.3      Letter of Credit Fees.  Section 2.9.2 of the Agreement is hereby amended and restated in its entirety as follows:

	 	
               2.9.2      Letter of Credit Fees.  The Borrowers shall pay (i) to the Agent for the ratable account of the Banks a fee (the "Letter of Credit Fee") equal to three percent (3.00%) per annum, and (ii) to the Agent for its own account a fronting fee equal to one-eighth of one percent (1/8%) per annum, which fees shall be computed on the daily average Letters of Credit Outstanding and shall be payable quarterly in arrears commencing with the first Business Day of each January, April, July and October following issuance of each Letter of Credit and on the Expiration Date and calculated on the basis of a year of 365/365 days.
Letters of Credit Outstanding shall include the "Tennessee Letter of Credit", as defined in the First Amendment to Loan Documents of April 7, 1997 and the "Texas Letter of Credit", as defined in the Third Amendment to Loan Documents of April 24, 1998.  The Borrowers shall also pay to the Agent for the Agent's sole account the Agent's then in effect customary fees and administrative expenses payable with respect to the Letters of Credit as the Agent may generally charge or incur from time to time in connection with the issuance, maintenance, modification (if any), assignment or transfer (if any),negotiation, and administration of Letters of Credit.

     1.4      Expiration Date.  The Expiration Date for the Commitment is extended until January 10, 2005, provided that the Expiration Date for Letters of Credit Outstanding on January 9, 2005 shall be April 15, 2005, and accordingly, the defined term "Expiration Date" in Section 1.1 of the Agreement is hereby amended and restated as follows:

3

          Expiration Date, with respect to the Commitments, shall mean January 10, 2005; provided, however, the Expiration Date with respect to the Letters of Credit Outstanding on January 9, 2005, shall be April 15, 2005.

     1.5      Commitment Fee.  Section 2.3 of the Agreement is hereby amended and restated in its entirety as follows:

	 	     2.3  Commitment Fee.  Accruing from January 2, 2004 until the Expiration Date, the Borrower agrees to pay to the Agent for the account of each Bank, as consideration for such Bank's Commitment hereunder, a nonrefundable commitment fee (the "Commitment Fee") computed using the rate of one-half percent (.50%) per annum (the “Commitment Fee Applicable Margin”).  The Commitment Fee shall be computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed on the average daily difference between the amount of such Bank's Commitment as the same may be constituted from time to time and the Revolving Facility Usage.  All Commitment Fees shall be payable in arrears
on the first Business Day of each January, April, July and October after the date hereof and on the Expiration Date or upon acceleration of the Notes.

     1.6      Financial Covenants.  

          (a)      Section 8.2.18 [Maximum Leverage Ratio] of the Agreement is hereby amended and restated to read in its entirety as follows:

	 	 	8.2.18 Maximum Leverage Ratio.

	 	 	The Borrower shall not permit at any time the Borrower's Leverage Ratio to exceed the following: 3.75 to 1.0 for the fiscal quarters ending on March 31, 2004 and ending on June 30, 2004 and 3.50 to 1.0 from and after September 30, 2004.  The calculation of the Leverage Ratio which includes the fiscal quarter ending on December 31, 2003 shall use the defined term "Adjusted EBITDA" with respect to all four fiscal quarters.

          (b)      The defined term, "Leverage Ratio" in Section 1.1(A) of the Agreement is hereby amended and restated in its entirety:

               Leverage Ratio shall mean the ratio of (x) Total Debt to (y) Adjusted EBITDA.

          (c)      Section 1.1(A) of the Agreement is hereby amended by adding the defined term "Adjusted EBITDA" as follows:

4

	 	               Adjusted EBITDA shall mean EBITDA, calculated to exclude the following (such that a “Rolling 4 Qtr Add-back” shall be added to EBITDA to arrive at “Adjusted EBITDA”) in any rolling 4 quarter calculation, not to exceed, in the aggregate, Two Million Five Hundred Thousand Dollars ($2,500,000): (1) the severance charges related to the termination/retirement of Michael Hurt, the former CEO of the Parent, (2) the actual one-time costs incurred by the Borrowers with respect to the discontinuation of the manufacturing facility in Trenton, Tennessee and the relocation of a substantial amount of its production to the Borrowers other
manufacturing facilities, including San Luis Potosi, Mexico, and (3) actual one-time costs incurred by the Borrowers with respect to the relocation of certain production operations from its Scotland, Pennsylvania facility to its Naturns, Italy facility (the exclusions described in clauses (2) and (3) above shall be referred to as the “Relocation Exclusions”); provided however that such Relocation Exclusions will be reduced by the amount of projected savings anticipated to result from the cost and expenses contemplated by the Relocation Exclusions, as reflected in the table below: 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Qtr 4-‘03	 	 	Qtr 1-‘04	 	 	Qtr 2 -‘04	 	 	Qtr 3 -‘04	 	 	Qtr 4 -‘04	 
	 	 	

	 	
  

	 
	Estimated Relocation Exclusions	 	$	   782	 	$	  1,318	 	$	   525	 	$	   225	 	$	    25	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Projected Savings 	 	 	—	 	 	—	 	 	(125	)	 	(450	)	 	(575	)
	 	 	

  	 	
    

  	 
	Net Relocation Exclusions	 	 	782	 	$	  1,318	 	$	   400	 	$	   (225	)	$	    (550	)
	 	 	

  	 	
    

  	 
	Rolling 4  Qtr EBITDA Add-back used to arrive at “Adjusted EBITDA”	 	 	782	 	$	  2,100	 	$	   2,500	 	$	   2,275	 	$	    943	 
	 	 	

  	 	
    

  	 

It is understood that the timing of such expenditures and the resulting savings to be realized therefrom, is currently an estimate and therefore (1) the amount of the savings used in the calculation of the “Add-back” will be limited to the amount of the cumulative Relocation Exclusions incurred and (2) the “Add-back” shall not exceed, in the aggregate, $2,500,000 for all rolling 4 quarter calculations of “Adjusted EBITDA.”

5

	 	(d)      Adjusted EBITDA.   A new Section 8.2.22 shall be inserted into the Agreement as follows:

	 	 	 
	 	 	
          8.2.22      Adjusted EBITDA.   The Borrowers shall not permit Adjusted EBITDA, calculated on a trailing twelve month basis:

	 	 	 
	 	 	
     (a)      to be less than Seven Million Dollars ($7,000,000.00), as of March 31, 2004, 

	 	 	 
	 	 	
     (b)      to be less than Seven Million Two Hundred Fifty Thousand Dollars ($7,250,000.00) as of June 30, 2004, or

	 	 	 
	 	 	
     (c)      to be less than Eight Million Two Hundred Fifty Thousand Dollars ($8,250,000.00) as of September 30, 2004 and at any time thereafter.
	 	 	 

	 	(e)      Fixed
          Charge Coverage. Section 8.2.21 of the Agreement is hereby amended
    and restated as follows:
	 	 	 	 
	 	 	 	8.2.21 Fixed Charge Coverage.

	 	 	 	 
	 	 	 	The Borrowers shall maintain at all times a ratio of (x) Adjusted EBITDA less unfunded capital expenditures to (y) cash dividends paid, cash taxes paid, net interest expense and current maturities of long term debt (other than the Loans) of not less than:

	 	 	 	 
	 	 	 	
     (i)        2.00 to 1.0, calculated for the four (4) fiscal quarters ending March 31, 2004;

	 	 	 	 
	 	 	 	
     (ii)       1.75 to 1.0, calculated for the four (4) fiscal quarters ending June 30, 2004; and 

	 	 	 	 
	 	 	 	
     (iii)      1.50 to 1.0, calculated for the four (4) fiscal quarters ending September 30, 2004, and quarterly thereafter.

	 	 	 	 
	 	 	 	For purposes of this section, unfunded capital expenditures shall include, inter alia, capital expenditures funded with 

	 	 	 	with cash.

6

     (f)      Section 8.2.5 of the Agreement is hereby amended and restated in its entirety as follows:

	 	 	
          8.2.5      Dividends and Related Distributions.  While any Event of Default exists, each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable to make or pay, any dividend or other distribution of any nature (whether in cash, property, securities or otherwise) on account of or in respect of its shares of capital stock, partnership interests or limited liability company interests on account of the purchase, redemption, retirement or acquisition of its shares of capital stock (or warrants, options or rights therefor), partnership interests or limited liability company interests (any of the foregoing
referred to as a "Distribution"), except dividends or other distributions payable to another Loan Party.     Notwithstanding the foregoing or anything contained in this Agreement to the contrary, each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable to make or pay, any Distribution, including dividends or other distributions payable to another Loan Party , unless the Agent has received evidence, that the Borrowers are in compliance with all of the financial covenants set forth in this Agreement for the fiscal quarter most recently ended.

     1.7      Collateral.

          (a)      Section 1.1(A) is hereby amended by inserting the following defined term:

                    "Appraisal" shall mean a written appraisal prepared by an independent appraiser engaged by Agent on behalf of the Banks at the Borrower's sole cost and expense prepared in compliance with all applicable regulatory requirements, being also subject to the Agent's customary independent appraisal requirements.

          (b)      Upon the execution and delivery of the Mortgages, the Assignments of Leases and the other documents required by Section 3 below, the term "Loan Documents" shall include such Mortgages and Assignments of Leases and other documents.

          (c)      A new Section 3 is inserted into the Agreement as follows:

     3.1      Collateral.On or before March 1, 2004, the Borrowers shall deliver to the Agent a field exam of all domestic accounts receivable and inventory of the Borrowers, prepared by a firm acceptable to the Agent.  Unless otherwise indicated, on or before May 1, 2004, the Borrowers shall deliver to the Agent, on behalf of the Banks, the following:

7

          (1)      An Appraisal of all equipment owned by the Borrowers, indicating the liquidation value of such equipment;

          (2)      An Appraisal of all Property owned by the Borrowers and which is located in the United States of America (the "Domestic Real Estate"), indicating its fair market value;

          (3)      Phase I Environmental assessments of the Domestic Real Estate, with reliance letters in favor of the Agent, for the benefit of the Banks, prepared by an environmental consultant acceptable to Agent;

          (4)      A Mortgage and Security Agreement, in form and content acceptable to the Agent, from the Borrowers in favor of the Agent, on behalf of the Banks, encumbering the Domestic Real Estate, and all improvements thereon, securing the Obligations (the "Mortgages");

          (5)      An Assignment of Leases and Rents, in form and content acceptable to the Agent, from the Borrowers in favor of the Agent, on behalf of the Banks, with respect to the Domestic Real Estate, and all improvements thereon, securing the Obligations (the "Assignments of Leases");

          (6)      UCC-1 fixture filing financing statements naming the Borrowers as debtor and the Agent, on behalf of the Banks, as secured party, with respect to perfecting the security interests contemplated by the Mortgages;

          (7)      On or before June 30, 2004, a current survey of the Domestic Real Estate, certified by a registered surveyor approved by Agent, such certification to be addressed to Agent for the benefit of the Banks and (i) to show the location and area covered by all building lines affecting the Domestic Real Estate, the location and area of all easements encumbering and/or benefiting the Domestic Real Estate, the relation of the Domestic Real Estate to public thoroughfares for access purposes, the location of all physical conditions on the Domestic Real Estate, the proposed location of the Improvements and any encroachments of the Improvements or other physical
conditions upon any easements, building lines or property boundary lines, (ii) to state whether the Domestic Real Estate or any portion thereof is located in any federally designated flood zone area, and if so, to locate on the survey such portion of the Domestic Real Estate so designated, and (iii) to show the dimension and location of all improvements, parking areas, drives, easements and rights-of-way and the location of adjoining streets and distances to the nearest intersecting street;

          (8)      On or before June 30, 2004, evidence in such form as Agent may require of (i) satisfactory subdivision of the Domestic Real Estate and zoning for the improvements located thereon; (ii) the availability of all utility and municipal services required for the operation of the improvements located thereon; (iii) satisfactory soils compaction conditions and sub-surface support for the improvements located thereon; and (iv) the availability of means of access to and from the Domestic Real Estate by means of easements benefiting the same;

8

          (9)      Evidence in such form as Agent may require (including the actual policies, an ACORD Form 27 (Evidence of Property Insurance), an ACORD Form 25-S (Certificate of Liability Insurance), and evidence of payment of premiums) that all types of hazard and builder's risk insurance (including business interruption insurance, loss of rents insurance, malicious mischief insurance and flood insurance, if in a federal flood prone area) available with respect to the improvements located thereon, public liability and property damage insurance with respect to the Domestic Real Estate and improvements thereon, are in force and will continue in force so long as the Obligations are outstanding (the
policies for such insurance to be in form, in amounts and with companies satisfactory to Agent, and all hazard and liability policies, as applicable, to have attached to them additional insured, mortgagee and loss payee clauses, as applicable, in favor of Agent for the benefit of the Banks); and

          (10)      A title insurance commitment, issued by a title insurance company acceptable to Agent, together with complete and legible copies of all exceptions listed therein.

     2.     Conditions
to Closing.

          (a)      This Amendment is effective upon the satisfaction of the following conditions:

               (i)      The execution and delivery by Borrowers and the Banks of this Amendment.

               (ii)     The Borrowers shall pay all of the Agent's expenses incurred in connection with the preparation of this Amendment and the transactions contemplated by this Amendment, including without limitation, the reasonable fees and expenses of the Agent's counsel.

               (iii)      The Borrower shall pay to the Agent, for the ratable benefit of the Banks, an extension fee in the amount of Seventy-two Thousand Dollars ($72,000.00).

     3.     Miscellaneous.

           (a)     All
    of the terms, conditions, provisions and covenants in the Notes, the Agreement,
    the Loan Documents, and all other documents delivered to the Banks and the
    Agent in connection with any of the foregoing documents and obligations secured
    thereby shall remain unaltered and in full force and effect except as modified
by this Amendment. 

9

	
            (b)     The Borrowers hereby represent and warrant to the Banks and the Agent as of the date of this Amendment that, after giving effect to this Amendment: 

               (i)      there exists no Event of Default or Potential Default under any of the Loan Documents and that after giving effect to this Amendment, the representations and warranties in Section 6 of the Agreement are true and correct in all respects on and as of the date hereof.

               (ii)      as of the date hereof there are no rights of set-off, offsets, claims, counterclaims, credits or defenses to the payment or performance of their obligations to Agent under the Loan Documents, as amended by this Amendment.

               (iii)      each of the Borrower is solvent as of the date hereof, and will not be rendered insolvent as a result hereof and each has adequate capital to conduct its respective business.

	
            (c)     The Borrowers, and each of them, for themselves and their respective members, shareholders, directors, officers, employees, agents, representatives, successors and assigns, hereby waives, discharges and releases forever any and all existing claims and defenses, personal or otherwise, and rights of set-off that any of them may have against Agent, any Bank, their respective parents, subsidiaries, shareholders, directors, officers, employees, agents, representatives, predecessors, successors and assigns, or which might affect the enforceability of Agent and the Bank's respective rights and remedies under the Loan Documents, as amended by this Amendment, or to collect the
Obligations indefeasibly or enforce its respective liens.
	 	 	 

	
            (d)     This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.
	 	 	 

	
            (e)     Each and every one of the terms and provisions of this Amendment shall be binding upon and shall inure to the benefit of the Borrowers, the Banks and the Agent and their respective successors and assigns.
	 	 	 

	
            (f)     This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall constitute but one and the same instrument. This Amendment supersedes all prior understandings and agreements, whether written or oral, between the parties hereto and thereto relating to the transactions provided for herein or therein, including any prior proposal or commitment letters.
	 	 	 

	
            (g)     The execution and delivery of this waiver shall not be construed to establish a course of conduct or imply that any other, future or further waivers, consents or forbearance shall be considered, provided or agreed to.

10

          (h)      The Borrowers agree to execute and deliver, or cause to be executed and delivered, to Agent and/or the Banks, all other additional documents, instruments and certificates reasonably considered necessary by Agent to cause this Amendment or any document, instrument or certificate executed in connection therewith to be, become or remain valid and effective in accordance with its terms or in order to implement more fully the intent of this Amendment or such other document, instrument or certificate, including, but not limited to, UCC financing statements, the Mortgages, the Assignments of Leases, and amendments and restatements of all of the Loan Documents,
as amended by this Amendment.

Remainder of Page Intentionally Left Blank

11

               IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 	 	TB WOOD’S INCORPORATED, individually 

	 	 	 	 	 	 	and as Borrower Agent

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Joseph C. Horvath

	 	 	 	 	 	 	Title: Vice President/CFO 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	PLANT ENGINEERING CONSULTANTS, INC.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Joseph C. Horvath 

	 	 	 	 	 	 	Title: Treasurer

	 	 	 	 	 	 	 
	 	 	 	 	 	 	INDUSTRIAL BLAJU S.A., de C.V. MEXICO CITY, MEXICO

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Juan G. Kiewek

	 	 	 	 	 	 	Title: President      

	 	 	 	 	 	 	 
	 	 	 	 	 	 	TB WOOD'S CANADA, LTD.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Michael H. Iversen

	 	 	 	 	 	 	Title: President      

	 	 	 	 	 	 	 
	 	 	 	 	 	 	BERGES ELECTRONIC GMBH

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Preben H. Petersen

	 	 	 	 	 	 	Title: Director/General Manager

	 	 	 	 	 	 	 
	 	 	 	 	 	 	BERGES ELECTRONIC, S.r.l.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: /s/Preben H. Petersen

	 	 	 	 	 	 	Title: Director/General Manager 
	 	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	TB WOOD’S CORPORATION	 	 	 	 	 	 TB WOOD'S ENTERPRISES,
    INC.,
	 	 	 	 	 	 	a Delaware corporation
	 	 	 	 	 	 	 
	By: /s/Joseph
    C. Horvath	 	 	 	 	 	By: /s/Joseph
    C. Horvath
	Title: Vice
    President/CFO	 	 	 	 	 	 Title: President

SIGNATURES TO TENTH AMENDMENT TO LOAN DOCUMENTS

CONTINUED ON NEXT PAGE

12

SIGNATURES TO TENTH AMENDMENT TO LOAN DOCUMENTS

CONTINUED FROM PRIOR PAGE

                              

	 	 	 	 	 	 	PNC BANK, NATIONAL ASSOCIATION, 
	 	 	 	 	 	 	individually and as Agent

	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/Frank M. Sajer     

	 	 	 	 	 	 	Frank M. Sajer

	 	 	 	 	 	 	Vice President

	 	 	 	 	 	 	 
	 	 	 	 	 	 	NATIONAL CITY BANK OF PENNSYLVANIA

	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/Susan J. Dimmick     

	 	 	 	 	 	 	Susan J. Dimmick

	 	 	 	 	 	 	Vice President

	 	 	 	 	 	 	 
	 	 	 	 	 	 	WACHOVIA BANK, successor to First Union National Bank

	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/David Aulenbach     

	 	 	 	 	 	 	David Aulenbach

13

SCHEDULE 1.1(B) (Amended 2004)

COMMITMENTS OF BANKS

	Bank	 	Percentage	 	 	Amount
	 	 	 	 	 	 
	PNC Bank, National Association	 	 43.478260870%	 	$	15,652,173.91
	 	 	 	 	 	 
	Wachovia Bank	 	21.739130435%	 	 $	 7,826,086.96
	 	 	 	 	 	 
	National City Bank of Pennsylvania	 	 34.782608696%	 	 $	12,521,739.13
	 	 	 	 	 	 
	 	 	 	 	

    
	 	 	 	 	 	 
	TOTAL	 	100.00%	 	$	36,000,000.00

14<PAGE>

                                 LOAN AGREEMENT

                          Dated: As of January 30, 2004

                                      Among

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

                                  ("Borrower")

                                       and

     FLEET NATIONAL BANK, as Administrative Agent ("Administrative Agent"),

                                       and

         FLEET NATIONAL BANK, COMMERZBANK AG NEW YORK BRANCH, PB CAPITAL
         CORPORATION, MANUFACTURERS AND TRADERS TRUST COMPANY, SOVEREIGN
              BANK, RAYMOND JAMES BANK, FSB, CITIZENS BANK, and any
               other Lenders, if any, which may become parties to
                           this Agreement ( "Lenders")

                                ________________

                       FLEET SECURITIES, INC. ("Arranger")
                                ________________

                              $100,000,000.00 LOAN

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

1.       BACKGROUND...........................................................1

         1.1      Defined Terms...............................................1
         1.2      Borrower....................................................1
         1.3      Use of Loan Proceeds........................................1
         1.4      Guaranties..................................................1
         1.5      Loan........................................................1

2.       LOAN PROVISIONS......................................................2

         2.1      General Loan Provisions.....................................2
                  2.1.1      Limit............................................2
                  2.1.2      Procedures and Limits............................2
                  2.1.3      Funding Procedures...............................3
         2.2      Term of Loan................................................4
                             (i)    No Default................................4
                             (ii)   Notice From Borrower......................4
                             (iii)  Covenant Compliance.......................5
                             (iv)   Conditions Satisfied......................5
                             (v)    Extension Fee.............................5
                             (vii)  Additional Documents......................5
                             (viii) Before End of Term........................5
         2.3      Interest Rate and Payment Terms.............................5
                  2.3.1      Borrower's Options...............................5
                  2.3.2      Selection To Be Made.............................5
                  2.3.3      Notice...........................................6
                  2.3.4      If No Notice.....................................6
                  2.3.5      Telephonic Notice................................6
                  2.3.6      Limits On Options, One Selection Per Month.......6
                  2.3.7      Payment and Calculation of Interest..............6
                  2.3.8      Mandatory Principal Payments.....................6
                  2.3.9      Prepayment.......................................7
                  2.3.10     Maturity.........................................7
                  2.3.11     Method of Payment; Date of Credit................7
                  2.3.12     Billings.........................................7
                  2.3.13     Default Rate.....................................8
                  2.3.14     Late Charges.....................................8
                  2.3.15     Breakage Fees....................................8
         2.4      Loan Fees; Administrative Agent's Fees......................8
                  2.4.1      Loan Fees........................................8
                  2.4.2      Line Fee.........................................8
                  2.4.3      Issuance Fees....................................9
                  2.4.4      Letter of Credit Fees............................9
         2.5      Acceleration................................................9
         2.6      Additional Provisions Related to Interest Rate Selection....9
                  2.6.1      Increased Costs..................................9
                  2.6.2      Illegality.......................................9
                  2.6.3      Additional LIBO Rate Conditions.................10
                  2.6.4      Variable Rate Advances..........................11
         2.7      Letters of Credit..........................................11

                                       (2)

<PAGE>

3.       SECURITY FOR THE LOAN; LOAN AND SECURITY DOCUMENTS..................14

         3.1      Security...................................................14
                  3.1.1      Mortgage/ Deed of Trust and Security Agreement..15
                  3.1.2      Collateral Assignment of Leases and Rents.......16
                  3.1.3      Collateral Assignment of Contracts..............16
                  3.1.4      Guaranties......................................16
                  3.1.5      Environmental Compliance and Indemnification
                               Agreement.....................................16
                  3.1.6      Ownership Interest and Inter-Company Loan
                               Pledge........................................16
         3.2      Loan Documents and Security Documents......................16
         3.3      Removal of Individual Property as a Borrowing Base Property
                    - Borrower...............................................17
         3.4      Removal of Individual Property as a Borrowing Base Property
                    - Administrative Agent...................................18
         3.5      Additional Borrowing Base Property.........................19

4.       CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES..................20

5.       CONDITIONS PRECEDENT................................................20

         5.1      Closing Loan and Funding Initial Loan Advance..............20
                  5.1.2      Financial Information; No Material Change.......20
                  5.1.3      Warranties and Representations Accurate.........21
                  5.1.4      Validity and Sufficiency of Security Documents..21
                  5.1.5      Litigation......................................22
                  5.1.6      Formation Documents and Entity Agreements.......22
                  5.1.7      Compliance With Law.............................23
                  5.1.8      Compliance With Financial Covenants.............23
                  5.1.9      Borrowing Base Property Due Diligence...........23
                  5.1.10     Condition of Property...........................23
                  5.1.11     Insurance.......................................23
                  5.1.12     Third Party Consents and Agreements.............23
                  5.1.13     Cash Management.................................23
                  5.1.14     Legal and other Opinions........................23
                  5.1.15     No Default......................................23

6.       WARRANTIES AND REPRESENTATIONS......................................24

         6.1      Formation..................................................24
         6.2      Proceedings; Enforceability................................24
         6.3      Conflicts..................................................24
         6.4      Ownership and Taxpayer Identification Numbers..............25
         6.5      Litigation.................................................25
         6.6      Information................................................25
         6.7      Taxes......................................................25
         6.8      Financial Information......................................25
         6.9      Control Provisions.........................................25
         6.10     Formation Documents........................................26
         6.11     Bankruptcy Filings.........................................26
         6.12     Investment Company.........................................26
         6.13     Holding Company............................................26

                                                (3)

<PAGE>

         6.14     Borrowing Base Properties..................................26
         6.15     Use of Proceeds............................................28
         6.16     Insurance..................................................28
         6.17     Deferred Compensation and ERISA............................28
         6.18     Conditions Satisfied.......................................28
         6.19     No Default.................................................28
         6.20     Other Loan Parties' Warranties and Representations.........28
         6.21     Qualification as a REIT....................................28
         6.22     Regarding Representations and Warranties...................28

7.       AFFIRMATIVE COVENANTS...............................................29

         7.1      Notices....................................................29
         7.2      Financial Statements; Reports; Officer's Certificates......29
                  7.2.1      Annual Statements...............................29
                  7.2.2      Periodic Statements.............................29
                  7.2.3      Borrowing Base Property Reports.................30
                  7.2.4      SEC Reports.....................................30
                  7.2.5      Compliance Certificates.........................30
                  7.2.6      Data Requested..................................30
                  7.2.7      Tax Returns.....................................30
                  7.2.8      Lease Notices...................................30
                  7.2.9      Ground Lessor Interest Notices..................31
                  7.2.10     Entity Notices..................................31
                  7.2.12     Property Finance................................31
                  7.2.13     Notice of Litigation............................31
         7.3      Existence..................................................31
         7.4      Payment of Taxes...........................................31
         7.5      Insurance; Casualty, Taking................................32
         7.6      Inspection.................................................32
         7.7      Loan Documents.............................................32
         7.8      Further Assurances.........................................33
         7.9      Books and Records..........................................33
         7.10     Business and Operations....................................33
         7.11     Title......................................................33
         7.12     Estoppel...................................................34
         7.13     ERISA......................................................34
         7.14     Depository Account.........................................35
         7.15     Costs and Expenses.........................................35
         7.16     Appraisals.................................................35
                  7.16.1     Appraisal.......................................35
                  7.16.2     Costs of Appraisal..............................35
         7.17     Indemnification............................................35
         7.18     Leasing Matters............................................36
                  7.18.1     Administrative Agent's Approval Required........36
                  7.18.2     Borrower's Requests.............................36
                  7.18.3     Response........................................37
                  7.18.4     Advance Information.  ..........................37
                  7.18.5     Preliminary Submission.  .......................37
         7.19     Interest Expense Coverage..................................37
         7.20     Leverage Ratio.............................................37
         7.21     Fixed Charge Ratio.........................................38
         7.22     Net Worth..................................................38

                                       (4)

<PAGE>

         7.23     Borrowing Base Property Covenants..........................38
         7.25     Replacement Documentation..................................38
         7.26     Other Covenants............................................38
         7.27     Maintenance of REIT Status.................................39
         7.28     Lenders' Consultants.......................................39
                  7.28.1     Right to Employ. ...............................39
                  7.28.2     Functions.......................................39
                  7.28.3     Payment.........................................39
                  7.28.4     Access..........................................39
                  7.28.5     No Liability....................................39

8.       NEGATIVE COVENANTS..................................................39

         8.1      No Changes to Borrower and other Loan Parties..............39
         8.2      Restrictions on Liens......................................40
         8.3      Consolidations, Mergers, Sales of Assets, Issuance and Sale
                   of Equity.................................................40
         8.4      Restrictions on Debt.......................................42
         8.5      Other Business.............................................42
         8.6      Change of Control..........................................43
         8.7      Forgiveness of Debt........................................43
         8.8      Affiliate Transactions.....................................43
         8.9      ERISA.     ................................................43
         8.10     Bankruptcy Filings.........................................43
         8.11     Investment Company.........................................43
         8.12     Holding Company............................................43
         8.13     Use of Proceeds............................................43
         8.14     Distributions..............................................43
         8.15     Restrictions on Investments................................43
         8.16     Negative Pledges, etc......................................44

9.       SPECIAL PROVISIONS..................................................44

         9.1      Legal Requirements.........................................44
         9.2      Limited Recourse Provisions................................44
                  9.2.1      Borrower Fully Liable...........................44
                  9.2.2      Certain Non-Recourse............................44
                  9.2.3      Additional Matters..............................45
         9.3      Payment of Obligations.....................................45

10.      EVENTS OF DEFAULT...................................................45

         10.1     Default and Events of Default..............................45
                  10.1.1     Failure to Pay the Loan.........................45
                  10.1.2     Failure to Make Other Payments..................45
                  10.1.3     Note, Security Documents, and Other Loan
                               Documents.....................................46
                  10.1.4     Default under Other Agreements..................46
                  10.1.5     Representations and Warranties..................46
                  10.1.6     Affirmative Covenants...........................46
                  10.1.7     Negative Covenants..............................46
                  10.1.8     Financial Status and Insolvency.................46
                  10.1.9     Loan Documents..................................47
                  10.1.10    Judgments.......................................47
                  10.1.11    ERISA...........................................47

                                       (5)

<PAGE>

                  10.1.12    Change of Control...............................47
                  10.1.15    Generally.......................................48
         10.2     Grace Periods and Notice...................................48
                  10.2.1     No Notice or Grace Period.......................48
                  10.2.2     Nonpayment of Interest..........................48
                  10.2.3     Other Monetary Defaults.........................48
                  10.2.4     Nonmonetary Defaults Capable of Cure............48
                  10.2.5     Borrowing Base Property Defaults................49

11.      REMEDIES............................................................49

         11.1     Remedies...................................................49
                  11.1.1     Accelerate Debt.................................49
                  11.1.2     Collateralize Letters of Credit.................49
                  11.1.3     Pursue Remedies.................................49
         11.2     Written Waivers............................................49
         11.3     Power of Attorney..........................................49

12.      SECURITY INTEREST AND SET-OFF.......................................50

         12.1     Security Interest..........................................50
         12.2     Set-Off....................................................50
         12.3     Right to Freeze............................................51
         12.4     Additional Rights..........................................51

13.      THE ADMINISTRATIVE AGENT AND THE LENDERS............................51

         13.1     Rights, Duties and Immunities of the Administrative Agent..51
                  13.1.1     Appointment of Administrative Agent.............51
                  13.1.2     Administration of Loan by Administrative Agent..51
                  13.1.3     Delegation of Duties............................52
                  13.1.4     Exculpatory Provisions..........................52
                  13.1.5     Reliance by Administrative Agent................52
                  13.1.6     Notice of Default...............................53
                  13.1.7     Lenders' Credit Decisions.......................53
                  13.1.8     Administrative Agent's Reimbursement and
                               Indemnification...............................53
                  13.1.9     Administrative Agent in its Individual Capacity.54
                  13.1.10    Successor Administrative Agent..................54
                  13.1.11    Duties in the Case of Enforcement...............54
         13.2     Respecting Loans and Payments..............................55
                  13.2.1     Procedures for Loans............................55
                  13.2.2     Nature of Obligations of Lenders................55
                  13.2.3     Payments to Administrative Agent................56
                  13.2.4     Distribution of Liquidation Proceeds............56
                  13.2.5     Adjustments.....................................57
                  13.2.6     Setoff..........................................57
                  13.2.7     Distribution by Administrative Agent............57
                  13.2.8     Delinquent Lender...............................57
                  13.2.9     Holders.........................................58
         13.3     Assignment and Participation...............................58
                  13.3.1     Conditions to Assignment by Lenders.............58
                  13.3.2     Certain Representations and Warranties..........59

                                       (6)

<PAGE>

                  13.3.3     Register........................................60
                  13.3.4     Register........................................60
                  13.3.5     Participations..................................60
                  13.3.6     Disclosure......................................60
                  13.3.7     Miscellaneous Assignment Provisions.............61
                  13.3.8     Assignment by Borrower..........................61
         13.4     Administrative Matters.....................................61
                  13.4.1     Amendment, Waiver, Consent, Etc.................61
                  13.4.2     Deemed Consent or Approval......................62
         13.5     Arranger...................................................62

14.      CASUALTY AND TAKING.................................................62

         14.1     Casualty or Taking; Obligation To Repair...................62
         14.2     Adjustment of Claims.......................................62
         14.3     Payment and Application of Insurance Proceeds and
                    Condemnation Awards......................................63
         14.4     Conditions To Release of Insurance Proceeds................64

15.      GENERAL PROVISIONS..................................................65

         15.1     Notices....................................................65
         15.2     Limitations on Assignment..................................67
         15.3     Further Assurances.........................................67
         15.4     Payments...................................................67
         15.5     Parties Bound..............................................67
         15.6     Governing Law; Consent to Jurisdiction; Mutual Waiver of
                    Jury Trial...............................................68
                  15.6.1      Substantial Relationship.......................68
                  15.6.2      Place of Delivery..............................68
                  15.6.3      Governing Law..................................68
                  15.6.4      Exceptions.....................................68
                  15.6.5      Consent to Jurisdiction........................68
                  15.6.6      JURY TRIAL WAIVER..............................69
         15.7              Survival..........................................69
         15.8     Cumulative Rights..........................................69
         15.9     Claims Against Administrative Agent or Lenders.............69
                  15.9.1     Borrower Must Notify............................69
                  15.9.2     Remedies........................................70
                  15.9.3     Limitations.....................................70
         15.10    Regarding Consents.........................................70
         15.11    Obligations Absolute.......................................70
         15.12    Table of Contents, Title and Headings......................70
         15.13    Counterparts...............................................71
         15.14    Satisfaction of Commitment Letter..........................71
         15.15    Time Of the Essence........................................71
         15.16    No Oral Change.............................................71
         15.17    Monthly Statements.........................................71

                                       (7)

<PAGE>

                                    EXHIBITS

Exhibits .....................................................................2

Exhibit A    --   Definitions..............................................EA-1

Exhibit B-1  --   Requisition; Availability Certificate....................EB-1

Exhibit C    --    Note....................................................EC-1

Exhibit D    --   Authorized Representatives...............................ED-1

Exhibit E    --   Required Property, Hazard and Other Insurance............EE-1

Exhibit F    --   Ownership Interests and Taxpayer Identification
                   Numbers.................................................EF-1

Exhibit G    --   Compliance Certificate...................................EG-1

Exhibit H    --   Form of Assignment and Acceptance........................EH-1

Exhibit I    --   Lenders' Commitment......................................EI-1

Exhibit J    --   Borrowing Base Properties................................EJ-1

Exhibit K    --   Loan Agenda.........................................Exhibit A

Exhibit EC   --   Estoppel Certificate................................Exhibit A

Exhibit TP   --   Theater Parcel..........................................3.3.7

Exhibit CC   --   Closing Compliance Certificate..........................3.3.7

                                       (8)

<PAGE>

                                    SCHEDULES

                                                                         Page

   Schedule 1.3............................................................1
   Schedule 6.14.2(i).....................................................26
   Schedule 6.14.4(ii)....................................................27
   Schedule 6.14.4(iii)...................................................27
   Schedule 6.14.4(iv)....................................................28
   Schedule 6.14.5........................................................28

                                       (9)

<PAGE>
                                 LOAN AGREEMENT

         This agreement ("Loan Agreement" or "Agreement") is made and entered
into as of the 30th day of January, 2004, by and between CEDAR SHOPPING CENTERS
PARTNERSHIP, L.P., a Delaware limited partnership having an address at 44 South
Bayles Avenue, Port Washington, New York 11050 ("Borrower") and FLEET NATIONAL
BANK, a national banking association, with a place of business at 100 Federal
Street, Boston, Massachusetts, 02110, COMMERZBANK AG NEW YORK BRANCH, with an
address at 2 World Financial Center, New York, New York 10281, PB CAPITAL
CORPORATION, with an address at 590 Madison Avenue, New York, New York, 10022,
MANUFACTURERS AND TRADERS TRUST COMPANY, with an address at One M & T Plaza,
Buffalo, New York 14240, SOVEREIGN BANK, with an address at 75 State Street,
Boston, Massachusetts 02109 RAYMOND JAMES BANK, FSB, with an address at 710
Carillon Parkway, St. Petersburg, Florida 33716, CITIZENS BANK, with an address
at 3025 Chemical Road 194-0245, Suite 245, Plymouth Meeting, Pennsylvania 19462,
and the other lending institutions which are or may hereafter become parties to
this Agreement pursuant to Section 13.3 (the "Lenders") and FLEET NATIONAL BANK,
a national banking association, with a place of business at 100 Federal Street,
Boston, Massachusetts, 02110, as agent for itself and such other lending
institutions (the "Administrative Agent").

                                   WITNESSETH:

         1. BACKGROUND.

         1.1 Defined Terms. Capitalized terms used in this Agreement are defined
either in Exhibit A, or in specific sections of this Agreement, or in another
Loan Document, as referenced in Exhibit A.

         1.2 Borrower. Borrower is a limited partnership organized under the
laws of the State of Delaware of which the sole general partner is CSC.

         1.3 Use of Loan Proceeds. Borrower has applied to Lenders for a
revolving loan of not to exceed ONE HUNDRED MILLION DOLLARS ($100,000,000.00)
("Loan"), the proceeds of which are to be used to (a) repay certain existing
indebtedness of the Borrower, (b) provide working capital to the Borrower, CSC,
and the Borrower Subsidiaries, (c) to provide funds for acquisitions,
development, capital expenditures, and refinancings of real estate properties by
the Borrower, CSC, and the Borrower Subsidiaries, (d) to pay certain closing and
transactional costs as approved by the Administrative Agent, and (e) for other
lawful REIT purposes, including, without limitation, the disbursements on the
Closing Date set forth in Schedule 1.3.

         1.4 Guaranties. As an inducement to Lenders to make the Loan, CEDAR
SHOPPING CENTERS, INC., a Maryland corporation, ("CSC") and each Borrowing Base
Property Owner (severally and collectively called "Guarantor" or "Guarantors")
have agreed to furnish guaranties to the Administrative Agent, for the ratable
benefit of the Lenders. The establishment of the facility provided for herein
and the making of the Loan is in the best interest of each of the Guarantors as
the proceeds of the Loan are being, or may be, used to satisfy Debt of certain
of the Guarantors and to make available funds to the Guarantors for working
capital purposes and for acquisitions, development, capital expenditures, and
refinancings of real estate properties. The Lenders have advised the Borrower
that the Lenders will not establish this facility without the Guaranty from the
Guarantors.

                                       -1-
<PAGE>

         1.5 Loan. Subject to all of the terms, conditions and provisions of
this Agreement, and of the agreements and instruments referred to herein, each
of the Lenders agrees severally to make a loan to the Borrower up to a maximum
aggregate principal amount equal to such Lender's Commitment, and Borrower
agrees to accept and repay the Loan in accordance with the terms of this
Agreement.

         2. LOAN PROVISIONS.

         2.1      General Loan Provisions.

                  2.1.1 Limit.

                           (i) Subject to all of the terms and conditions
                  hereof, the Lenders hereby agree to lend to Borrower, and
                  Borrower may borrow, reborrow and repay from time to time sums
                  (the "Loan Advances") between the date hereof and the Initial
                  Maturity Date, provided that (a) the aggregate of (1)
                  outstanding principal balance of the Loan plus (2) the L/C
                  Exposure, shall at no time exceed (b) the least of (1) the
                  Established Loan Amount, (2) the Total Commitment, or (3) the
                  Availability (the least of (1), (2) or (3), the "Maximum Loan
                  Amount").

                           (ii) The obligations of the Lenders hereunder are
                  several and independent and not joint. Failure of any Lender
                  to fulfill its obligations hereunder shall not result in any
                  other Lender becoming obligated to advance more than its
                  Commitment Percentage of the Loan.

                           (iii) The Borrower acknowledges and agrees that no
                  Loan Advances shall be made during the Extended Term, if
                  applicable.

                  2.1.2 Procedures and Limits. Until the Initial Maturity Date,
         the Lenders shall, subject to compliance with all of the other terms,
         conditions and provisions of this Agreement and there then occurring no
         Default or Event of Default, make disbursements to Borrower of Loan
         Advances in installments in accordance with the following:

                           (i) Written Requests. Loan Advances shall be made, at
                  Borrower's written request to Administrative Agent, not more
                  frequently than four (4) times a month, on the basis of
                  written requests, made in accordance with the method and
                  procedures described in Section 2.1.3 below; and
                  Administrative Agent shall act upon such requests within three
                  (3) Business Days following the receipt of a written request
                  from Borrower for a Loan Advance, which action may include,
                  without limitation, funding the requested Loan Advance, or
                  specifying the basis for not funding and, when applicable,
                  requesting additional information and supporting
                  documentation. The date on which any Loan Advance is funded
                  (or Letter of Credit is issued) is herein called a "Drawdown
                  Date."

                           (ii) Requisitions, Certifications. Each request for a
                  Loan Advance shall be in writing and in the form attached
                  hereto as Exhibit B-1, and shall include an updated
                  Availability Certificate in the form of Exhibit B-1 attached
                  hereto. Each such request shall specify (i) the amount of the
                  Loan Advance requested, (ii) the purpose of the Loan Advance
                  requested, (iii) the aggregate outstanding principal balance
                  of the Loan plus L/C Exposure, (iv) the then aggregate
                  remaining amount which may be funded under the Note, and (v)
                  calculations evidencing the Borrower's continued compliance
                  with the Financial Covenants, as satisfied by the Closing
                  Compliance Certificate, or once delivered,

                                       -2-

<PAGE>

                  the most recent Compliance Certificate delivered by the
                  Borrower, except to the extent the contemplated Loan Advance
                  will result in noncompliance with the Financial Covenants.
                  Each request for a Loan Advance hereunder shall be for (a) a
                  minimum amount of $500,000.00, and (b) an amount not to exceed
                  (x) the Maximum Loan Amount less (y) the aggregate of the then
                  outstanding principal balance of the Loan plus L/C Exposure.

                  2.1.3 Funding Procedures. The following terms and provisions
         shall apply to any Loan Advance:

                           (i) Upon the satisfaction of the conditions set forth
                  in this Section 2.1, to the extent applicable, Administrative
                  Agent on behalf of the Lenders will either (x) deposit into a
                  Depository Account of the Borrower or (y) disburse to, or for
                  the benefit of, the Borrower or any Borrower Subsidiary (as
                  directed by the Borrower) the amount of the Loan Advance
                  requested by Borrower pursuant to this Section 2.1 provided
                  the Administrative Agent has received from the Lenders
                  immediately available funds not later than 1:00 p.m. (Eastern
                  time) on the proposed Drawdown Date (to the extent immediately
                  available funds are received later than 1:00 p.m (Eastern
                  time), Administrative Agent, on behalf of the Lenders, will
                  make the deposit into the Depository Account on the following
                  Business Day), provided that if Borrower's request for a Loan
                  Advance so specifies, instead of making such deposit,
                  Administrative Agent on behalf of the Lenders shall fund all
                  or a portion of such Loan Advance received by the
                  Administrative Agent from the Lenders directly by wire
                  transfer of immediately available funds to a third party (in
                  accordance with wiring instruction specified in such request),
                  in which event such funds shall be wired by no later than 2:00
                  p.m. (Eastern time) on the proposed Drawdown Date.

                           (ii) Each request for a Loan Advance hereunder shall
                  constitute a representation and warranty by Borrower that the
                  conditions set forth in Section 5.1 hereof, as the case may
                  be, have been satisfied on the date of such request and will
                  be satisfied on the proposed Drawdown Date, unless otherwise
                  disclosed in writing to the Administrative Agent prior to or
                  at the time of such request, including the Borrower's
                  continued compliance with the Financial Covenants, as
                  satisfied by the Closing Compliance Certificate, or once
                  delivered, the most recent Compliance Certificate delivered by
                  the Borrower, except to the extent the contemplated Loan
                  Advance will result in noncompliance with the Financial
                  Covenants. Notwithstanding any such disclosure, the disclosure
                  by Borrower to Administrative Agent that one or more of the
                  conditions set forth in Section 5.1 hereof are not satisfied
                  as of the date of Borrower's request for a Loan Advance or
                  will not be satisfied as of the proposed Drawdown Date shall
                  entitle Administrative Agent to refuse to make the Loan
                  Advance requested by Borrower.

                           (iii) If any Event of Default shall occur and be
                  continuing, the Administrative Agent may, by notice to
                  Borrower, terminate the obligation of the Lenders to fund Loan
                  Advances in respect of the then unfunded portion of the Note,
                  and, upon such notice being given, such obligation of the
                  Lenders to make any further Loan Advances in respect of the
                  then unfunded portion of the Note shall terminate immediately
                  and the Lenders shall be relieved of all further obligations
                  to make any Loan Advances to Borrower.

         2.2      Term of Loan.

                                       -3-
<PAGE>

                  2.2.1 The Loan shall be for a term (the "Initial Term")
         commencing on the date hereof and ending on January 30, 2007 or such
         earlier date as the Loan is accelerated pursuant to the terms of this
         Agreement upon an Event of Default (the "Initial Maturity Date"). The
         Initial Term may be extended for one year ("Extended Term") until
         January 30, 2008 ("Extended Maturity Date") upon satisfaction of the
         conditions set forth in Section 2.2.3 (hereinafter, the Initial
         Maturity Date and the Extended Maturity Date may be referred to herein
         sometimes as the "Maturity Date" as may be applicable).

                  2.2.2 Termination/Reduction.

                           (i) The Borrower shall have the right to terminate
                  the Loan prior to the originally scheduled Maturity Date by
                  providing the Administrative Agent with ten (10) days' written
                  notice of the Borrower's intention to terminate the Loan (the
                  date of such termination being the "Borrower Termination
                  Date"). In the event that the Borrower provides such written
                  notice to the Administrative Agent, (i) as of the date of the
                  notice, the Lenders shall have no further obligation to make
                  or issue, and the Borrower shall have no further right to
                  receive or request, any Loan Advances or any Letters of Credit
                  hereunder, and (ii) the Borrower shall be obligated on the
                  Borrower Termination Date to (x) pay in full all accrued
                  interest, principal and other charges due with respect to the
                  Loan, including, without limitation, any Breakage Fees due on
                  account of such payment and (y) either (1) provide
                  Administrative Agent with cash collateral equal to the
                  outstanding amount of all outstanding Letters of Credit from a
                  source other than the proceeds of the Loan or (2) return all
                  outstanding Letters of Credit to the Administrative Agent. If
                  such cash collateral is posted, such funds shall be held in an
                  interest bearing account at the Administrative Agent, shall be
                  pledged to secure the Obligations, and shall be refunded on a
                  dollar for dollar basis to the Borrower upon the return to the
                  Administrative Agent, or the expiration, of each Letter of
                  Credit.

                           (ii) The Borrower shall have the right to reduce the
                  Established Loan Amount to an amount not less than
                  $75,000,000.00 prior to the originally scheduled Maturity Date
                  by providing the Administrative Agent with ten (10) days'
                  written notice of the Borrower's intention to reduce the
                  Established Loan Amount (the date of such reduction being the
                  "Borrower Reduction Date"). In the event that the Borrower
                  provides such written notice to the Administrative Agent, (i)
                  as of the date of the notice, the Lenders shall have no
                  further obligation to make or issue, and the Borrower shall
                  have no further right to receive or request, any Loan Advances
                  or any Letters of Credit such that the (1) outstanding
                  principal balance of the Loan plus (2) the L/C Exposure, would
                  exceed such reduced Established Loan Amount, and (ii) the
                  Borrower shall be obligated on the Borrower Reduction Date to
                  (x) pay in full the excess of (1) outstanding principal
                  balance of the Loan plus (2) the L/C Exposure (less any
                  portion of the L/C Exposure which is cash collateralized as
                  set forth in section (y) below), over the reduced Established
                  Loan Amount, including, without limitation, any Breakage Fees
                  due on account of such payment and/or (y) provide
                  Administrative Agent with cash collateral equal to such excess
                  with respect to Letters of Credit from a source other than the
                  proceeds of the Loan. If such cash collateral is posted, such
                  funds shall be held in an interest bearing account at the
                  Administrative Agent, shall be pledged to secure the
                  Obligations, and shall be refunded on a dollar for dollar
                  basis to the Borrower upon the return to the Administrative
                  Agent, or the expiration, of each Letter of Credit. In order
                  to effect such reduced Established Loan Amount, the
                  Administrative Agent shall be entitled to reduce the Lenders'

                                       -4-
<PAGE>
                  Commitments in such fashion as the Administrative Agent deems
                  reasonably appropriate.

                  2.2.3 Upon satisfaction of each of the following conditions,
         Borrower may extend the Initial Maturity Date of the Loan until the
         Extended Maturity Date:

                           (i) No Default. No Default shall exist on the date of
                  the Borrower's written notice for an extension as provided for
                  below and on the Initial Maturity Date.

                           (ii) Notice From Borrower. Borrower shall have given
                  Administrative Agent (and the Administrative Agent shall give
                  prompt notice thereof to the Lenders) written notice of
                  Borrower's request to exercise its extension right at least
                  forty five (45) days, but no more than ninety (90) days,
                  before the Initial Maturity Date.

                           (iii) Covenant Compliance. No breach of any covenants
                  imposed upon Borrower or Guarantor shall exist including,
                  without limitation, the Financial Covenants.

                           (iv) Conditions Satisfied. All of the conditions set
                  forth in Section 5.1 of this Agreement, to the extent
                  applicable, shall continue to be satisfied.

                           (v) Extension Fee. The Borrower shall have paid to
                  the Administrative Agent an extension fee (the "Extension
                  Fee") for the pro rata benefit of the Lenders of one-quarter
                  percent (0.25%) of the outstanding principal balance of the
                  Loan, such Extension Fee to be payable at least five (5) days
                  prior to the Initial Maturity Date.

                           (vi) Appraisals. The Administrative Agent shall have
                  obtained an updated Appraisal on each Borrowing Base Property.

                           (vii) Additional Documents. Borrower and Guarantor
                  shall have executed and delivered to Administrative Agent such
                  agreements and documents as Administrative Agent may
                  reasonably require incident to the extension.

                           (viii) Before End of Term. Each of the foregoing
                  conditions are satisfied not later than, and on, the Initial
                  Maturity Date.

         Within thirty (30) days following receipt by Administrative Agent and
         each of the Lenders of Borrower's written notice under clause 2.2.3(ii)
         above requesting the extension accompanied by those of the items
         described above which are then available, Administrative Agent shall
         notify Borrower in writing if all of the conditions precedent to the
         extension, other than payment of the Extension Fee, have been
         satisfied, or if further information, certificates or work are
         required. If Administrative Agent determines that the conditions to
         extension have been satisfied, other than payment of the Extension Fee,
         Administrative Agent shall so notify Borrower and the Lenders and upon
         Administrative Agent's receipt of the Extension Fee not later than five
         (5) days prior to the Initial Maturity Date, so long as no Default
         exists, the term of the Loan shall be extended until the Extended
         Maturity Date.

                                       -5-
<PAGE>
         2.3 Interest Rate and Payment Terms. The Loan shall be payable as to
interest and principal in accordance with the provisions of this Agreement and
the Note. This Agreement also provides for interest at a Default Rate, Late
Charges and prepayment rights and fees. All payments for the account of Lenders
shall be applied to the respective accounts of the Lenders in accordance with
each Lender's Commitment Percentage of the Loan. Any and all interest rate
selection and conversion provisions in this Agreement are to be administered by
the Administrative Agent and to be allocated on a pro rata basis to the portion
of the balance due under the Note held by each Lender based upon such Lender's
Commitment Percentage.

                  2.3.1 Borrower's Options. Principal amounts outstanding under
         the Loan shall bear interest at the following rates, at Borrower's
         selection, subject to the conditions and limitations provided for in
         this Agreement: (i) Variable Rate or (ii) Effective LIBO Rate.

                  2.3.2 Selection To Be Made. Borrower shall select, and
         thereafter may change the selection of, the applicable interest rate,
         from the alternatives otherwise provided for in this Agreement, by
         giving Administrative Agent a Notice of Rate Selection (in accordance
         with the requirements of Section 2.3.3, below): (i) three (3) Business
         Days prior to each Loan Advance, (ii) two (2) Business Days prior to
         the end of each Interest Period applicable to an Effective LIBO Rate
         Advance which shall be continued as an Effective LIBO Rate Advance, or
         (iii) two (2) Business Days prior to any Business Day on which Borrower
         desires to convert an outstanding Variable Rate Advance to an Effective
         LIBO Rate Advance.

                  2.3.3 Notice. A "Notice of Rate Selection" shall be a written
         notice, given by cable, tested telex, telecopier, or by telephone if
         immediately confirmed by such a written notice, from an Authorized
         Representative of Borrower which: (i) is received by Administrative
         Agent not later than 10:00 a.m. (Eastern time): (a) if an Effective
         LIBO Rate is selected, at least two (2) Business Days prior to the
         first day of the Interest Period to which such selection is to apply,
         (b) if a Variable Rate is selected, on the first day of the Interest
         Period to which such selection is to apply; and (ii) as to each
         selected interest rate option, sets forth the aggregate principal
         amount(s) to which such interest rate option(s) shall apply and the
         Interest Period(s) applicable to each Effective LIBO Rate Advance.

                  2.3.4 If No Notice. If Borrower fails to select an interest
         rate option in accordance with the foregoing prior to a Loan Advance,
         or at least two (2) Business Days prior to the last day of the
         applicable Interest Period of an outstanding Effective LIBO Rate
         Advance, or if an Effective LIBO Rate Advance is not available, any new
         Loan Advance made shall be deemed to be a Variable Rate Advance, and on
         the last day of the applicable Interest Period all outstanding
         principal amounts of the applicable Effective LIBO Rate Advance shall
         be deemed converted to a Variable Rate Advance.

                  2.3.5 Telephonic Notice. Without any way limiting Borrower's
         obligation to confirm in writing any telephonic notice, Administrative
         Agent may act without liability upon the basis of telephonic notice
         believed by Administrative Agent in good faith to be from Borrower
         prior to receipt of written confirmation. In each case Borrower hereby
         waives the right to dispute Administrative Agent's record of the terms
         of such telephonic Notice of Rate Selection in the absence of manifest
         error.

                  2.3.6 Limits On Options, One Selection Per Month. Each
         Effective LIBO Rate Advance shall be in a minimum amount of
         $1,000,000.00. At no time shall there be outstanding a total of more
         than five (5) Effective LIBO Rate Advances combined at any time.

                                       -6-
<PAGE>

                  2.3.7 Payment and Calculation of Interest. All interest shall
         be: (a) payable in arrears commencing February 1, 2004 and on the same
         day of each month thereafter until the principal together with all
         interest and other charges payable with respect to the Loan shall be
         fully paid; and (b) calculated on the basis of a 360 day year and the
         actual number of days elapsed. Each change in the Prime Rate shall
         simultaneously change the Variable Rate payable under this Agreement.
         Interest at the Effective LIBO Rate shall be computed from and
         including the first day of the applicable Interest Period to, but
         excluding, the last day thereof.

                  2.3.8 Mandatory Principal Payments.

                           (i) If, on any day, the aggregate of (a) the
                  outstanding principal balance of the Loan, plus (b) the L/C
                  Exposure, exceeds the Maximum Loan Amount, then the Borrower
                  shall make a principal payment to the Administrative Agent,
                  for the ratable benefit of the Lenders, in the amount of such
                  excess, including, without limitation, any payment required to
                  comply with the terms of Section 3.4, below, in immediately
                  available funds within ten (10) Business Days of demand from
                  the Administrative Agent; provided, however, if during such
                  ten (10) Business Day period the Borrower delivers to the
                  Administrative Agent satisfactory Funding Evidence, such ten
                  (10) Business Day period shall be extended for such additional
                  time as is determined by the Administrative Agent to be
                  required for Borrower, acting in due diligence, to obtain such
                  funds, not to exceed an additional sixty (60) days.

                           (ii) In connection with the release of the Lien in
                  favor of the Administrative Agent on behalf of the Lenders on
                  any Borrowing Base Property in accordance with Section 3.3,
                  the Borrower shall prepay the Loan in an amount equal to the
                  Release Price, if any, of the said Borrowing Base Property
                  simultaneously with, or prior to, the release of the said Lien
                  (any payment due under subsections (i) or (ii), a "Mandatory
                  Principal Payment").

                           (iii) If the Initial Maturity Date is extended to the
                  Extended Maturity Date, in addition to any other payments
                  required under this Section 2.3.8, the Borrower shall make
                  monthly principal payments commencing on February 1, 2007 and
                  on the first Business Day of each month thereafter, based on a
                  twenty five (25) year amortization schedule of the outstanding
                  principal balance of the Loan as of the Initial Maturity Date
                  and an assumed interest rate equal to the Effective LIBO Rate
                  as of the Initial Maturity Date.

                           (iv) The entire principal balance of the Loan shall
                  be due and payable in full on the Maturity Date.

                  2.3.9 Prepayment. The Loan or any portion thereof may be
         prepaid in full or in part at any time upon five (5) days' prior
         written notice to the Administrative Agent without premium or penalty
         with respect to Variable Rate Advances and, with respect to Effective
         LIBO Rate Advances subject to the Breakage Fee. Any Mandatory Principal
         Prepayment and any other partial prepayment of principal shall first be
         applied to the principal due in the reverse order of maturity, and no
         such partial prepayment shall relieve Borrower of the obligation to pay
         each installment of principal when due. Any amounts prepaid may be
         reborrowed subject to the terms hereof.

                                       -7-
<PAGE>
                  2.3.10 Maturity. At Maturity all accrued interest, principal
         and other charges due with respect to the Loan shall be due and payable
         in full and the principal balance and such other charges, but not
         unpaid interest, shall, at the option of the Administrative Agent,
         continue to bear interest thereafter at the Default Rate until so paid.

                  2.3.11 Method of Payment; Date of Credit. All payments of
         interest, principal and fees shall be made in lawful money of the
         United States in immediately available funds, without counterclaim or
         setoff and free and clear of, and without any deduction or withholding
         for, any taxes or other payments: (a) by direct charge to an account of
         Borrower maintained with Administrative Agent, or (b) by wire transfer
         to Administrative Agent or (c) to such other bank or address as the
         holder of the Loan may designate in a written notice to Borrower.
         Payments shall be credited on the Business Day on which immediately
         available funds are received prior to 1:00 p.m. (Eastern time);
         payments received after 1:00 p.m. (Eastern time) shall be credited to
         the Loan on the next Business Day. Payments which are by check, which
         Administrative Agent may at its option accept or reject, or which are
         not in the form of immediately available funds shall not be credited to
         the Loan until such funds become immediately available to
         Administrative Agent, and, with respect to payments by check, such
         credit shall be provisional until the item is finally paid by the payor
         bank.

                  2.3.12 Billings. Administrative Agent may submit monthly
         billings reflecting payments due; however, any changes in the interest
         rate which occur between the date of billing and the due date may be
         reflected in the billing for a subsequent month. Neither the failure of
         Administrative Agent to submit a billing nor any error in any such
         billing shall excuse Borrower from the obligation to make full payment
         of all Borrower's payment obligations when due.

                  2.3.13 Default Rate. Administrative Agent shall have the
         option of imposing, and shall impose upon the direction of the Required
         Lenders, and Borrower shall pay upon billing therefor, an interest rate
         which is four percent (4.0%) per annum above the Effective LIBO Rate or
         Variable Rate then in effect with respect to Loan Advances (as the case
         may be) ("Default Rate"): (a) following any Event of Default, unless
         and until the Event of Default is waived by Administrative Agent; and
         (b) after Maturity. Borrower's right to select pricing options shall
         cease upon the occurrence of any Event of Default unless and until the
         Event of Default is waived by Administrative Agent.

                  2.3.14 Late Charges. Borrower shall pay a late charge (herein,
         the "Late Charge") equal to five percent (5%) of the amount of any
         interest or scheduled payment of principal (other than the final
         principal payment due upon the Maturity Date), which is not paid within
         ten (10) days of the due date thereof. Late charges are: (a) payable in
         addition to, and not in limitation of, the Default Rate, (b) intended
         to compensate Administrative Agent and the Lenders for administrative
         and processing costs incident to late payments, (c) are not interest,
         and (d) shall not be subject to refund or rebate or credited against
         any other amount due.

                  2.3.15 Breakage Fees. Borrower shall pay to Administrative
         Agent, for the ratable benefit of the Lenders, immediately upon request
         and notwithstanding contrary provisions contained in any of the Loan
         Documents, such amounts as shall, in the conclusive judgment of
         Administrative Agent (in the absence of manifest error), compensate
         Administrative Agent and the Lenders for the loss, cost or expense
         which it may reasonably incur as a result of (i) any payment or
         prepayment, under any circumstances whatsoever, whether voluntary or
         involuntary, of all or any portion of an Effective LIBO Rate Advance on
         a date other than the last day of the applicable Interest

                                       -8-

<PAGE>

         Period of an Effective LIBO Rate Advance, (ii) the conversion, for any
         reason whatsoever, whether voluntary or involuntary, of any Effective
         LIBO Rate Advance to a Variable Rate Advance on a date other than the
         last day of the applicable Interest Period, (iii) the failure of all or
         a portion of a Loan which was to have borne interest at the Effective
         LIBO Rate pursuant to the request of Borrower to be made under the Loan
         Agreement (except as a result of any act or omission of Lender), or
         (iv) the failure of Borrower to borrow in accordance with any request
         submitted by it for an Effective LIBO Rate Advance. Such amounts
         payable by Borrower shall be equal to any administrative costs actually
         incurred plus any amounts required to compensate for any loss, cost or
         expense incurred by reason of the liquidation or redeployment of
         deposits or other funds acquired by Administrative Agent or any Lender
         to fund or maintain an Effective LIBO Rate Advance (herein,
         collectively, the "Breakage Fee").

         2.4 Loan Fees; Administrative Agent's Fees.

                  2.4.1 Loan Fees. Borrower shall pay Administrative Agent for
         its own account the various fees in accordance with the Fee Letter
         between the Borrower and the Administrative Agent.

                  2.4.2 Line Fee. Borrower agrees to pay an unused line fee (the
         "Line Fee") to Administrative Agent for the pro rata benefit of the
         Lenders calculated at the rate of the Line Percentage multiplied by the
         average daily amount during each quarter or portion thereof from the
         date hereof to the Maturity Date by which the Total Commitments exceeds
         the aggregate of (i) the outstanding principal balance of the Loan and
         (ii) the L/C Exposure. The Line Fee shall be payable to the
         Administrative Agent quarterly in arrears on the first day of each
         calendar quarter for the immediately preceding calendar quarter or
         portion thereof, with a final payment on the Maturity Date and the
         first and last payments to be prorated based upon the partial calendar
         quarters to which they apply.

                  2.4.3 Issuance Fees. Upon the issuance of a Letter of Credit,
         Borrower shall pay to the Administrative Agent for its own account an
         issuance fee in the amount of one- eighth of one percent (0.125%) of
         the face amount of each Letter of Credit.

                  2.4.4 Letter of Credit Fees. Borrower agrees to pay a per
         annum Letter of Credit fee to Administrative Agent for the pro rata
         benefit of the Lenders equal to the Applicable Margin for LIBO Rate
         Advances multiplied by the face amount of each Letter of Credit,
         payable quarterly in arrears on the first day of each calendar quarter
         for the immediately preceding calendar quarter or portion thereof, with
         a final payment on the Maturity Date. The first and last payments of
         such Letter of Credit fee are to be prorated based upon the partial
         calendar quarters to which they apply.

         2.5 Acceleration. The Administrative Agent may, and upon the request of
the Required Lenders shall, accelerate the Loan, upon the occurrence an Event of
Default which remains continuing. Upon such an acceleration, all principal,
accrued interest, Breakage Fee, any other fees, and costs and expenses shall be
due and payable together with interest on such principal at the Default Rate
from the date of the Event of Default until paid.

         2.6 Additional Provisions Related to Interest Rate Selection.

                  2.6.1 Increased Costs. If, due to any one or more of: (i) the
         introduction of any applicable law or regulation or any change (other
         than any change by way of imposition or increase of reserve
         requirements already referred to in the definition of Effective LIBO
         Rate) in the interpretation or application by any authority charged
         with

                                       -9-
<PAGE>

         the interpretation or application thereof of any law or regulation; or
         (ii) the compliance with any guideline or request from any governmental
         central bank or other governmental authority (whether or not having the
         force of law) (an event described in the preceding clause (i) or (ii)
         an "Increased Cost Event"), there shall be an increase in the cost to
         any Lender of agreeing to make or making, funding or maintaining
         Effective LIBO Rate Advances, including without limitation changes
         which affect or would affect the amount of capital or reserves required
         or expected to be maintained by any such Lender, with respect to all or
         any portion of the Loan, or any corporation controlling any Lender, on
         account thereof, then Borrower from time to time shall, within twenty
         (20) days after written demand by Administrative Agent, pay to such
         Lender the incremental increase in Lender's cost due to the Increased
         Cost Event. A certificate as to the amount of the increased cost and
         the reason therefor submitted to Borrower by Administrative Agent, in
         the absence of manifest error, shall be conclusive and binding for all
         purposes.

                  2.6.2 Illegality. Notwithstanding any other provision of this
         Agreement, if the introduction of or change in or in the interpretation
         of any law, treaty, statute, regulation or interpretation thereof shall
         make it unlawful, or any central bank or government authority shall
         assert by directive, guideline or otherwise, that it is unlawful, for
         any Lender to make or maintain Effective LIBO Rate Advances or to
         continue to fund or maintain Effective LIBO Rate Advances, and such
         Lender, without cost or expense, cannot hold or administer its
         Commitment from an office where maintaining and funding Effective LIBO
         Rate Advances can be accomplished, then, on written notice thereof and
         demand by Administrative Agent to Borrower, (a) the obligation of
         Administrative Agent to make Effective LIBO Rate Advances and to
         convert or continue any Loan as Effective LIBO Rate Advances shall
         terminate and (b) at the end of the applicable Interest Period,
         Borrower shall convert all principal outstanding under this Agreement
         into Variable Rate Advances.

                  2.6.3 Additional LIBO Rate Conditions. The selection by
         Borrower of an Effective LIBO Rate and the maintenance of the Effective
         LIBO Rate Advance at such rate shall be subject to the following
         additional terms and conditions:

                           A. Availability. If, before or after Borrower has
                  selected to take or maintain an Effective LIBO Rate Advance,
                  but before the Interest Period with respect thereto commences,
                  the Administrative Agent notifies Borrower that:

                                    (a) Dollar deposits in the amount and for
                           the maturity requested are not available to Lenders
                           in the London interbank market at the rate specified
                           in the definition of LIBO Rate set forth above, or

                                    (b) reasonable means do not exist for
                           Administrative Agent to determine the Effective LIBO
                           Rate for the amounts and maturity requested,

                  then the principal which would have been an Effective LIBO
                  Rate Advance shall be a Variable Rate Advance.

                           B. Payments Net of Taxes. All payments and
                  prepayments of principal and interest under this Agreement
                  shall be made net of any taxes (excluding taxes imposed on or
                  measured by the overall net income of any Lender or any agent
                  of any Lender and all franchise or gross receipts tax of any
                  Lender or any agent of any Lender) and costs resulting from
                  having principal outstanding at or computed with reference, to
                  an Effective LIBO Rate. Without limiting the

                                      -10-
<PAGE>
                  generality of the preceding obligation, illustrations of such
                  taxes and costs as to which payments are to be made net of are
                  taxes, or the withholding of amounts for taxes, of any nature
                  whatsoever including income, excise, interest equalization
                  taxes (other than United States or state income taxes) as well
                  as all levies, imposts, duties or fees whether now in
                  existence or as the result of a change in or promulgation of
                  any treaty, statute, regulation, or interpretation thereof or
                  any directive guideline or otherwise by a central bank or
                  fiscal authority (whether or not having the force of law) or a
                  change in the basis of, or the time of payment of, such taxes
                  and other amounts resulting therefrom. Each Lender organized
                  under the laws of a jurisdiction outside of the United States
                  (a "Foreign Lender") shall provide to the Borrower and the
                  Administrative Agent two properly completed and executed
                  Internal Revenue Service Forms W-8BEN or other applicable
                  forms, certificates or documents prescribed by the Internal
                  Revenue Service of the United States certifying as to such
                  Foreign Lender's entitlement to complete exemption from United
                  States withholding tax under an applicable statute or tax
                  treaty with respect to payments to be made to such Foreign
                  Lender hereunder ("Certificates of Exemption"). Each Foreign
                  Lender shall provide such Certificates of Exemption on or
                  before the Closing Date, and shall provide Certificates of
                  Exemption on or before the first business day of each taxable
                  year of such Foreign Lender thereafter. Each Foreign Lender
                  that becomes a Lender pursuant to Section 13.3 after the
                  Closing Date shall provide Certificates of Exemption on or
                  before the date such Foreign Lender becomes a Lender and on or
                  before the first business day of each taxable year of such
                  Foreign Lender thereafter. If a Foreign Lender does not
                  provide a Certificate of Exemption to Borrower and the
                  Administrative Agent within the time periods set forth in the
                  preceding sentence, Borrower shall withhold taxes from
                  payments to such Foreign Lender at the applicable statutory
                  rates and Borrower shall be permitted to deduct the amount
                  withheld from the amount it otherwise would have been required
                  to pay, provided that all such withholding shall cease upon
                  delivery by such Foreign Lender of a Certificate of Exemption
                  to Borrower and Administrative Agent. Each Lender that is not
                  a Foreign Lender and is not exempt from backup withholding
                  under the Code with respect to payments made under this
                  Agreement shall provide a properly completed and executed IRS
                  Form W-9 to the Borrower promptly after becoming a Lender
                  under this Agreement. If a Lender fails to comply with its
                  obligations under the preceding sentence and Borrower pays
                  backup withholding as a result of such failure, Borrower shall
                  be permitted to deduct the amount withheld from the amount it
                  otherwise would have been required to pay to the Lender.

                  2.6.4 Variable Rate Advances. Each Variable Rate Advance shall
         continue as a Variable Rate Advance until Maturity of the Loan, unless
         sooner converted, in whole or in part, to an Effective LIBO Rate
         Advance, subject to the limitations and conditions set forth in this
         Agreement.

         2.7 Letters of Credit.

                  2.7.1 Borrower has requested the Administrative Agent, and
         Administrative Agent has agreed, until the Maturity Date and subject to
         compliance with all of the other terms, conditions and provisions of
         this Agreement and there then occurring no Default or Event of Default,
         to issue on behalf of the Lenders one or more letters of credit
         (individually, a "Letter of Credit" and collectively, "Letters of
         Credit") for the Borrower as the account party in an aggregate amount
         not to exceed the lesser of (1) the difference

                                      -11-
<PAGE>

         between (x) the Maximum Loan Amount and (y) the then outstanding
         principal amount of the Loan plus the L/C Exposure or (2) Five Million
         Dollars ($5,000,000.00). The Borrower shall give the Administrative
         Agent written notice (each a "Notice of Letter of Credit") that it
         requires the issuance of a Letter of Credit not later than 11:00 a.m.
         (Eastern time) on the fourth (4th) Business Day preceding the requested
         date for issuance thereof under this Agreement (or such later date as
         the Administrative Agent may in its sole discretion agree to). Such
         notice shall specify (i) the aggregate amount of the requested Letters
         of Credit, (ii) the individual amount of each requested Letter of
         Credit and the number of Letters of Credit to be issued, (iii) the date
         of such issuance (which shall be a Business Day), (iv) the name and
         address of the beneficiary and if other than the Borrower, the name and
         address of the Borrower Subsidiary for whose account the Letter of
         Credit will be issued, (v) the expiration date of the Letter of Credit,
         (vi) the purpose and circumstances for which such Letter of Credit is
         being issued, (vii) the terms upon which each such Letter of Credit may
         be drawn down (which terms shall not leave any discretion to
         Administrative Agent), (viii) that no Default or Event of Default has
         occurred and is continuing both before and after giving effect to such
         issuance, (ix) that the Borrower and all Loan Parties are in compliance
         in all material respects with all covenants set forth herein after
         giving effect to such issuance, with compliance with the Financial
         Covenants being satisfied by the Closing Compliance Certificate, or
         once delivered, the most recent Compliance Certificate delivered by the
         Borrower, except to the extent the issuance of the contemplated Letter
         of Credit will result in noncompliance with the Financial Covenants,
         (x) that all representations and warranties made under the Loan
         Documents (other than representations and warranties which speak as of
         a specific date or as to which the Administrative Agent has previously
         been advised in writing by the Borrower are no longer true and correct)
         are true, correct and complete in all material respects as if made as
         of the date of such issuance, and (xii) the L/C Exposure. No later than
         10:00 a.m. (Eastern time), on the date that is four (4) Business Days
         prior to the date of issuance, the Borrower shall specify a precise
         description of the documents and the verbatim text of any certificate
         to be presented by the beneficiary of such Letter of Credit, which if
         presented by such beneficiary prior to the expiration date of the
         Letter of Credit would require the Administrative Agent to make a
         payment under the Letter of Credit; provided, that Administrative Agent
         may, in its reasonable judgment, require changes in any such documents
         and certificates only in conformity with changes in customary and
         commercially reasonable practice or law. In determining whether to pay
         on such Letter of Credit, the Administrative Agent shall be responsible
         only to determine that the documents and certificates required to be
         delivered under the Letter of Credit have been delivered and that they
         comply on their face with the requirements of that Letter of Credit.

                  2.7.2 In the event that prior to the Maturity Date, the
         beneficiary of any Letter of Credit draws all or a portion of the
         amount thereof, then the portion so drawn shall be treated as a Loan
         Advance under the Note, and shall bear interest at the Variable Rate
         and shall be treated as a Variable Rate Advance under, and shall
         otherwise be payable on the same terms and conditions hereof (provided
         that the portion so drawn shall not be deemed to be a new Loan Advance
         for purposes of calculating the Availability, to the extent the
         issuance of the Letter of Credit shall have so reduced such
         Availability in accordance with the terms of this Agreement). The
         foregoing is not intended to prohibit Borrower from converting such
         Variable Rate Advance to an Effective LIBO Advance in accordance with
         the provisions of the Note.

                  2.7.3 Each Letter of Credit shall be issued using the standard
         form of letter of

                                      -12-
<PAGE>

         credit then being used by Administrative Agent (which standard form
         shall, at Borrower's request, be provided by Administrative Agent to
         Borrower prior to the issuance of any Letter of Credit), and shall have
         an expiration date no later than thirty (30) days prior to the Maturity
         Date.

                  2.7.4 Notwithstanding anything to the contrary contained in
         this Agreement or the Note, in no event shall Borrower have the right
         to pay off the entire indebtedness evidenced by the Note and, in
         connection therewith, advise Administrative Agent and the applicable
         Lenders that it unconditionally waives its right to obtain further
         applicable Loan Advances and Letters of Credit under the Loan (i.e.,
         Borrower desires to cancel the applicable Note) unless Borrower either
         (i) provides Administrative Agent with cash collateral equal to the
         outstanding amount of the Letters of Credit from a source other than
         the proceeds of the Loan or (ii) returns all outstanding Letters of
         Credit to the Administrative Agent.

                  2.7.5 Upon the issuance of each Letter of Credit, a
         participation therein in an amount equal to each Lender's Commitment
         Percentage, shall automatically be deemed granted by the Administrative
         Agent to each such Lender on the date of such issuance and each Lender
         shall automatically be obligated to reimburse the Administrative Agent
         to the extent of its Commitment Percentage for all obligations incurred
         by the Administrative Agent to third parties in respect of such Letters
         of Credit, if not otherwise deemed to be a Loan Advance hereunder.

                  2.7.6 The Administrative Agent may accept or pay any draft
         presented to it, regardless of when drawn and whether or not
         negotiated, if such draft, the other required documents and any
         transmittal advice are presented to the Administrative Agent and dated
         on or before the expiration date of the Letter of Credit under which
         such draft is drawn. The Administrative Agent may honor as complying
         with the terms of the Letter of Credit and with this Agreement any
         drafts or other documents otherwise in order signed or issued by an
         administrator, executor, conservator, trustee in bankruptcy, debtor in
         possession, assignee for benefit of creditors, liquidator, receiver or
         other legal representative of the party authorized under such Letter of
         Credit to draw or issue such other drafts or other documents.

                  2.7.7 The Uniform Customs and Practice for Documentary Credits
         (1993 Revision), International Chamber of Commerce Publication No. 500,
         and any subsequent revisions thereof approved by a Congress of the
         International Chamber of Commerce and adhered to by the Administrative
         Agent (the "Uniform Customs and Practice"), shall be binding on the
         Borrower and the Administrative Agent except to the extent otherwise
         provided herein, in any Letter of Credit or in any other Loan Document.
         Anything in the Uniform Customs and Practice to the contrary
         notwithstanding:

                           (i) None of the Loan Parties nor any beneficiary of
                  any Letter of Credit shall be deemed an agent of the
                  Administrative Agent or the Lenders.

                           (ii) With respect to any Letter of Credit, neither
                  the Administrative Agent nor its correspondents nor the
                  Lenders shall be responsible for or shall have any duty to
                  ascertain:

                           A. the genuineness of any signature;

                                      -13-
<PAGE>

                           B. the validity, sufficiency, accuracy, genuineness
                  or legal effect of any endorsements;

                           C. delay in giving, or failure to give, notice of
                  arrival, notice of refusal of documents or of discrepancies in
                  respect of which the Administrative Agent refuses the
                  documents or any other notice, demand or protest;

                           D. the performance by any beneficiary under any
                  Letter of Credit of such beneficiary's obligations to the
                  Borrower or any Loan Party;

                           E. inaccuracy in any notice received by the
                  Administrative Agent; or

                           F. the validity, sufficiency, accuracy, genuineness
                  or legal effect of any instrument, draft, certificate or other
                  document required by such Letter of Credit to be presented
                  before payment of a draft, or the office held by or the
                  authority of any Person signing any of the same.

                           (iii) The obligations of the Borrower under the Loan
                  Documents are absolute, unconditional, and irrevocable and
                  shall be performed strictly in accordance with the terms
                  hereof under all circumstances, whatsoever, including the
                  following:

                           A. any lack of validity or enforceability or
                  restriction, restraint, or stay in the enforcement of this
                  Agreement, the Letters of Credit, or any other agreement or
                  instrument relating thereto, unless the Administrative Agent
                  is restrained or stayed from honoring a drawing under the
                  subject Letter of Credit;

                           B. any amendment or waiver of, or consent to the
                  departure from, the Letters of Credit, unless the said
                  amendment, waiver or consent has been made in accordance with
                  the Administrative Agent's procedures with respect thereto and
                  with the written authorization or acknowledgment of the
                  Administrative Agent; or

                           C. the existence of any claim, set-off, defense, or
                  other right which the Borrower may have at any time against
                  the beneficiary of the Letters of Credit.

                           (iv) The occurrence of any of the events referred to
                  in the preceding clauses of this Section 2.7.7 shall not
                  affect or prevent the vesting of any of the Administrative
                  Agent's rights or powers hereunder or the Borrower's
                  obligation to make reimbursement of amounts paid under any
                  Letter of Credit or any draft accepted thereunder.

                           (v) All directions, correspondence, and funds
                  transfers relating to the Letter of Credit are at the risk of
                  the Borrower. Administrative Agent shall have discharged
                  Administrative Agent's obligations under the Letter of Credit
                  by the initiation of the method of payment called for in any
                  drawing which includes payment instructions (or by any other
                  commercially reasonable and comparable method). Unless caused
                  by the gross negligence or willful misconduct of the
                  Administrative Agent, Administrative Agent and the Lenders
                  shall not have any responsibility for any inaccuracy,
                  interruption, error, or delay in transmission or delivery by
                  post, telegraph or cable, or for any inaccuracy of
                  translation.

                                      -14-

<PAGE>

                           (vi) The Borrower recognizes that:

                           A. Neither Administrative Agent nor the Lenders have
                  any financial or other interests in the beneficiary of Letters
                  of Credit.

                           B. Administrative Agent is irrevocably obligated to
                  honor a proper drawing under the Letters of Credit.

                           C. In the event of any conflict between the
                  provisions of this Agreement and the Uniform Customs and
                  Practice, the provisions of this Agreement shall govern.

         3. SECURITY FOR THE LOAN; LOAN AND SECURITY DOCUMENTS.

         3.1 Security. The Loan together with interest thereon and all other
charges and amounts payable by, and all other obligations of, Borrower and the
other Loan Parties to the Administrative Agent and/or each of the Lenders,
whenever incurred, direct or indirect, absolute or contingent, arising under or
with respect to this Agreement, the Security Documents, or any other Loan
Document, together with all other Obligations, shall be secured by the following
collateral (the "Collateral") which Borrower agrees to provide and maintain, or
cause to be provided and maintained (whether provided for each in separate
agreements or combined with various other agreements):

                  3.1.1 Mortgage/ Deed of Trust and Security Agreement.

                           (i) A first priority mortgage/deed of trust (as
                  applicable) and security agreement (individually and
                  collectively, the "Mortgage") granted by each Borrowing Base
                  Property Owner to the Administrative Agent or a trustee on
                  behalf of the Administrative Agent, as applicable, for the
                  ratable benefit of the Lenders, on (i) each Collateral
                  Property, (ii) all land, improvements, furniture, fixtures,
                  equipment, and other assets (including, without limitation,
                  property management agreements, contracts, contract rights,
                  accounts, Licenses and Permits and general intangibles),
                  including all after-acquired property, owned, or in which each
                  Borrowing Base Property Owner has or obtains any interest, in
                  connection with each Collateral Property; (iii) all insurance
                  proceeds and other proceeds therefrom, and (iv) all other
                  assets of each Borrowing Base Property Owner, whether now
                  owned or hereafter acquired and related to each Collateral
                  Property.

                           (ii) Each Mortgage shall secure the payment and
                  performance of the Obligations.

                           (iii) At the option of the Administrative Agent, each
                  Mortgage shall be either (x) a first priority mortgage/deed of
                  trust (as applicable) and security agreement granted by the
                  applicable Borrowing Base Property Owner to the Administrative
                  Agent or a trustee on behalf of the Administrative Agent, as
                  applicable, on behalf of the Lenders, or (y) an amendment,
                  restatement and consolidation of a first priority
                  mortgage/deed of trust (as applicable) and security agreement
                  acquired by the Administrative Agent, for the ratable benefit
                  of the Lenders, with proceeds of a Loan Advance.

                                      -15-

<PAGE>

                           (iv) In the event that in connection with the
                  granting of any Mortgage on a Borrowing Base Property, the
                  Administrative Agent, for the ratable benefit of the Lenders,
                  purchases by assignment an existing mortgage loan or loans on
                  such Borrowing Base Property, the Borrower represents,
                  warrants, covenants and agrees as follows:

                                    (a) The request for the Administrative Agent
                           to purchase by assignment such loan or loan shall
                           constitute a representation and warranty by the
                           Borrower that (i) all signatures by the Borrower, any
                           Borrower Subsidiary and, to the best of the
                           Borrower's knowledge, all other persons or entities
                           on the assigned promissory note, mortgage, and all
                           other documents, instruments, and agreements executed
                           in connection therewith are genuine, (ii) such
                           documents, together with any other documents or
                           instruments supplied by the Borrower to the
                           Administrative Agent, sets forth the entire agreement
                           with respect to the loan arrangement evidenced
                           thereby, (iii) the applicable Borrowing Base Property
                           Owner is absolutely and unconditionally indebted
                           under said documents and does not have any offsets,
                           defenses, or counterclaims thereunder, or otherwise
                           against the lender thereunder, or any predecessor in
                           interest to such lender;

                                    (b) The Borrower waives, on its own behalf
                           and on behalf of CSC and the Loan Parties any
                           offsets, defenses or counterclaims that exist or may
                           have existed with respect to such assigned loan
                           arrangement and assigned documents; and

                                    (c) The Borrower shall cause to be delivered
                           to the Administrative Agent such documents,
                           instruments and agreements as the Administrative
                           Agent shall reasonably require in order to evidence
                           and effectuate such assignment and the terms and
                           conditions hereof.

                  3.1.2 Collateral Assignment of Leases and Rents. A first
         priority collateral assignment of leases and rents (individually and
         collectively, the "Assignment of Leases and Rents") granted by each
         Borrowing Base Property Owner to the Administrative Agent, for the
         ratable benefit of the Lenders, with respect to all Leases of each
         Collateral Property and all income and profits to be derived from the
         operation and leasing of each Collateral Property.

                  3.1.3 Collateral Assignment of Contracts. A first priority
         collateral assignment and security agreement granted by each Borrowing
         Base Property Owner to the Administrative Agent, for the ratable
         benefit of the Lenders, with respect to all Licenses and Permits and
         all contracts, agreements and warranties now owned or hereafter
         acquired by each Collateral Property Owner and related in any manner to
         each Collateral Property.

                  3.1.4 Guaranties. The unconditional, continuing guaranty
         (singly and collectively the "Guaranty") from the Guarantor, pursuant
         to which each Guarantor shall guaranty the prompt, punctual, and
         faithful payment of the Loan and the performance of all Borrower's
         other Obligations to the Administrative Agent and each of the Lenders
         under the Loan Documents.

                  3.1.5 Environmental Compliance and Indemnification Agreement.
         A

                                      -16-
<PAGE>

         compliance and indemnification agreement with respect to environmental
         matters ("Environmental Indemnity") from Borrower and each Guarantor in
         favor of the Administrative Agent and each of the Lenders.

                  3.1.6 Ownership Interest and Inter-Company Loan Pledge. A
         first priority pledge granted to the Administrative Agent, for the
         ratable benefit of the Lenders, with respect to (i) the one-hundred
         (100%) percent ownership interest in (x) each Borrowing Base Property
         Owner held by any Loan Party or Borrower Subsidiary (with the exception
         of any Borrowing Base Property directly owned by the Borrower) and (y)
         each manager/general partner of a Borrowing Base Property Owner (with
         the exception of any Borrowing Base Property directly owned by the
         Borrower) and (ii) any inter-company loans from time to time due from
         any Borrowing Base Property Owner held by the Borrower or any Loan
         Party to the Borrower.

                  3.1.7 Additional Documents. Any other documents, instruments
         and agreements set forth on the Loan Agenda.

         3.2 Loan Documents and Security Documents. The Loan shall be made,
evidenced, administered, secured and governed by all of the terms, conditions
and provisions of the following loan documents (the "Loan Documents"), each as
the same may be hereafter modified or amended, consisting of: (i) this Loan
Agreement; (ii) a separate promissory note in the form of Exhibit C, annexed
hereto, payable to each Lender in the aggregate principal amount of Established
Loan Amount; (iii) the various documents and agreements referenced in Section
3.1, above, and (iv) any other documents, instruments, or agreements heretofore
or hereafter executed to further evidence or secure the Loan.

         The Loan Documents, referenced in items 3.1.1 through and including
3.1.7, together with any such other Loan Documents as may be executed in
accordance with Section 3.5, below, as to any Collateral Property, are sometimes
referred to herein, singly and collectively as the "Security Documents".

         3.3 Removal of Individual Property as a Borrowing Base Property -
Borrower. From time to time during the term of this Agreement following (i)
Borrower's written request ("Collateral Release Request") indicating that (x)
the Borrower intends to sell or refinance the subject Borrowing Base Property or
(y) the removal of one or more Borrowing Base Properties is necessary to cure or
remedy a Default hereunder, and (ii) satisfaction of the Release Conditions, the
Administrative Agent shall release such Borrowing Base Property from the Lien
held by the Administrative Agent, for the ratable benefit of the Lenders,
release the subject Borrowing Base Property Owner from the Guaranty, terminate
the assignments made by such Borrowing Base Property Owner pursuant to Sections
3.1.2 and 3.1.3, release the Environmental Indemnity delivered pursuant to
Section 3.1.5, and release its Lien upon the ownership interest in such
Borrowing Base Property Owner and its manager or general partner which was
pledged by the Borrower as Collateral pursuant to Section 3.1.6, and thereafter
such Borrowing Base Property Owner shall no longer be a Loan Party for the
purposes of this Agreement (provided, however, any such release by the
Administrative Agent shall not be deemed to terminate or release such Borrowing
Base Property Owner from any obligation or liability under any Loan Document
which specifically by its terms survives the said release or the payment in full
of the Obligations). The "Release Conditions" are the following:

                  3.3.1 The Borrower shall make a Mandatory Principal Payment
         equal to the Release Price, if any, relative to the subject Borrowing
         Base Property or substitute a new

                                      -17-

<PAGE>

         Borrowing Base Property subject to the requirements of Section 3.5
below.

                  3.3.2 Upon release of the Lien on the subject Borrowing Base
         Property, the Financial Covenants shall remain satisfied (or be
         satisfied if the release cures a Default which resulted from the
         Financial Covenants not being satisfied).

                  3.3.3 No Default shall exist under this Agreement or the other
         Loan Documents at the time of any such release, except for any Default
         which is cured or remedied by the removal of such Individual Property
         from being a Borrowing Base Property.

                  3.3.4 No Event of Default shall exist under this Agreement or
         the other Loan Documents at the time of the Collateral Release Request
         or at the time of any such release, except for any Event of Default
         which is cured or remedied by the removal of such Individual Property
         from being a Borrowing Base Property.

                  3.3.5 All representations and warranties contained herein or
         in the other Loan Documents shall be true and correct in all material
         respects as of the time of any such release (other than representations
         and warranties which speak as of a specific date or which
         Administrative Agent was notified of were not true and correct prior to
         a request for a Loan Advance which was nonetheless made or which apply
         to the Individual Property being released).

                  3.3.6 The Borrower shall pay or reimburse the Administrative
         Agent for all appraisal fees, title insurance and recording costs,
         reasonable legal fees and expenses and other reasonable costs and
         expenses incurred by Administrative Agent in connection with the
         release.

         Any failure of any removal and release requested by the Borrower to
meet in all material respects all of the Release Conditions shall be deemed a
rejection of the proposed Collateral Release Request and, subject to the other
terms and conditions hereof as to whether any Individual Property is a Borrowing
Base Property, such Borrowing Base Property shall remain a Borrowing Base
Property hereunder and shall be included within the Collateral.

                  3.3.7 Notwithstanding the foregoing provisions of this Section
         3.3, the Administrative Agent and the Lenders acknowledge and agree
         that provided no Event of Default is then in existence, the
         Administrative Agent shall, upon the written request of the Borrower
         and without requiring Borrower to satisfy any of the Release
         Conditions, release the portion of the Individual Property owned by
         Cedar-Riverview, L.P., as described on Exhibit TP, from the lien of the
         Security Documents, and consent to the execution and recording of a
         customary reciprocal or other easement agreement with respect such
         property, provided, however, the foregoing provisions of the Section
         3.3.7 shall not apply in the event that such portion of such Individual
         Property has been accepted by the Lenders as a Borrowing Base Property.

         3.4 Removal of Individual Property as a Borrowing Base Property -
Administrative Agent.

                  3.4.1 An Individual Property shall no longer be deemed to be a
         Borrowing Base Property upon the determination by the Administrative
         Agent of the occurrence of any of the following:

                                      -18-

<PAGE>

                           (i) A Borrowing Base Property is a Non-Stabilized
                  Asset for a period of three (3) consecutive months;

                           (ii) A Major Event of Loss occurs as to a Borrowing
                  Base Property;

                           (iii) A Borrowing Base Property as to which an Event
                  of Loss occurs is not, or ceases to be, a Restoration
                  Property, or upon completion of the Repair Work, will not meet
                  all of the Borrowing Base Property Requirements; or

                           (iv) The Required Lenders have instructed the
                  Administrative Agent to remove a Borrowing Base Property if a
                  tenant or tenants which have Leases in such Borrowing Base
                  Property are subject to bankruptcy or insolvency proceedings
                  and are not paying rent as required under such Leases or have
                  filed a motion to reject such Lease, or have not assumed such
                  Lease within sixty (60) days (or such longer period granted by
                  the applicable bankruptcy court, not to exceed one hundred
                  eighty (180) days) after such tenant's bankruptcy filing, and
                  to the extent the space occupied by such tenants is deemed
                  vacant, the Occupancy Ratio for such Borrowing Base Property
                  would be less than 80%.

                  3.4.2 Upon any such Individual Property no longer being deemed
         to be a Borrowing Base Property, the Borrower shall make a Mandatory
         Principal Payment when required equal to the Release Price (if any) for
         such Borrowing Base Property.

                  3.4.3 With respect to any Individual Property determined by
         the Administrative Agent to no longer be deemed a Borrowing Base
         Property in accordance with this Section 3.4, if the Release Conditions
         are satisfied with respect thereto, the Administrative Agent shall
         release such Individual Property from the Lien held by the
         Administrative Agent, release the subject Borrowing Base Property Owner
         from the Guaranty, terminate the assignments made by such Borrowing
         Base Property Owner pursuant to Sections 3.1.2 and 3.1.3, release the
         Environmental Indemnity delivered pursuant to Section 3.1.5, and
         release its Lien upon the ownership interest in such Borrowing Base
         Property Owner and its manager or general partner which was pledged by
         the Borrower as Collateral pursuant to Section 3.1.6, and thereafter
         such Borrowing Base Property Owner shall no longer be a Loan Party for
         the purposes of this Agreement (provided, however, any such release by
         the Administrative Agent shall not be deemed to terminate or release
         such Borrowing Base Property Owner from any obligation or liability
         under any Loan Document which specifically by its terms survives the
         said release or the payment in full of the Obligations). However, if
         the said Release Conditions are not satisfied with respect to such
         Individual Property, although such Individual Property shall no longer
         be a Borrowing Base Property, the Individual Property shall not be
         released from the Lien held by the Administrative Agent (shall continue
         to be a Collateral Property) and there shall be no release of the
         Collateral relating to such Individual Property or the subject
         Borrowing Base Property Owner, until such time as the Release
         Conditions are satisfied with respect thereto.

         3.5 Additional Borrowing Base Property. From time to time during the
term of this Agreement following Borrower's written request ("Additional
Collateral Request"), compliance with the provisions of this Section 3.5, and
compliance with the requirements for inclusion as a Borrowing Base Property, as
set forth in the definition thereof, the Lenders shall authorize the
Administrative Agent to accept one or more Individual Properties as Borrowing
Base Properties

                                      -19-
<PAGE>

(as identified by the Borrower in its written request) to be held by the
Administrative Agent as Collateral. The Lenders shall agree to the acceptance of
the Individual Property as an additional Borrowing Base Property only upon the
satisfaction of the following conditions, in a manner reasonably acceptable to
the Administrative Agent and the Lenders:

                  3.5.1 The Borrower shall have obtained Preliminary Approval
         for the addition of such Individual Property.

                  3.5.2 The Borrower (or applicable Loan Party) shall have
         satisfied all of the Borrowing Base Property Requirements as to such
         Individual Property.

                  3.5.3 No Event of Default shall exist under this Agreement or
         the other Loan Documents at the time of the Additional Collateral
         Request or at the time of any such Individual Property becoming a
         Borrowing Base Property, except for any Default which is cured or
         remedied by such Individual Property becoming a Borrowing Base
         Property.

                  3.5.4 All representations and warranties contained herein or
         in the other Loan Documents shall be true and correct in all material
         respects as of the time of any such Individual Property becoming a
         Borrowing Base Property (or shall become true by virtue of such
         Individual Property becoming a Borrower Base Property) (other than
         representations and warranties which speak as of a specific date or
         which Administrative Agent was notified of were not true and correct
         prior to a request for a Loan Advance which was nonetheless made),
         including the Borrower's continued compliance with the Financial
         Covenants, as satisfied by the Closing Compliance Certificate, or once
         delivered, the most recent Compliance Certificate delivered by the
         Borrower.

                  3.5.5 The Borrower shall pay or reimburse the Administrative
         Agent for all appraisal fees, title insurance and recording costs,
         reasonable legal fees and expenses and other costs and expenses
         incurred by Administrative Agent in connection with the additional
         Borrowing Base Property.

                  3.5.6 The Borrower, the subject Borrowing Base Property Owner,
         and the subject Individual Property shall have satisfied all applicable
         conditions precedent set forth in Article 5 prior to the inclusion of
         the Individual Property as a Borrowing Base Property.

         Any failure of the proposed Borrowing Base Property to meet in all
material respects all of the foregoing conditions shall be deemed a rejection of
the proposed Borrowing Base Property for that Additional Collateral Request and
such proposed Borrowing Base Property shall not be included in the Borrowing
Base for any purpose unless and until all of the foregoing conditions are
satisfied or waived by the Administrative Agent and the Lenders. The
Administrative Agent shall give the Borrower prompt written notice of the
decision of the Lenders with respect to the admission or rejection of any
Individual Property as a Borrowing Base Property.

         4. CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES. Administrative
Agent and each of the Lenders are authorized to rely upon the continuing
authority of the persons, officers, signatories or agents hereafter designated
("Authorized Representatives") to bind Borrower with respect to all matters
pertaining to the Loan and the Loan Documents including, but not limited to, the
selection of interest rates, the submission of requests for Loan Advances or
Letters of Credit and certificates with regard thereto. Such authorization may
be changed only upon written notice to Administrative Agent accompanied by

                                      -20-
<PAGE>

evidence, reasonably satisfactory to Administrative Agent, of the authority of
the person giving such notice and such notice shall be effective not sooner than
five (5) Business Days following receipt thereof by Administrative Agent. The
present Authorized Representatives are listed on Exhibit D.

         5. CONDITIONS PRECEDENT.

         5.1 Closing Loan and Funding Initial Loan Advance. It shall be a
condition precedent of Lenders' obligation to close the Loan and to fund the
initial proceeds of the Loan that each of the following conditions precedent be
satisfied in full (as determined by each Lender in its discretion which
discretion shall be exercised reasonably and in good faith having due regard for
the advice of the Administrative Agent), unless specifically waived in writing
by all of the Lenders at or prior to the date of the closing and funding of the
initial Loan Advance (the "Closing Date") (in the event that the closing of the
Loan is an earlier date than the date of the initial funding of the Loan, then
the Closing Date shall refer to the date of the initial funding of the Loan):

                  5.1.1 Satisfactory Loan Documents. On the Closing Date, each
         of the Loan Documents shall be satisfactory in form, content and manner
         of execution and delivery to Administrative Agent and Administrative
         Agent's counsel and all Loan Documents shall be in full force and
         effect.

                  5.1.2 Financial Information; No Material Change.

                           (i) No change shall have occurred in the financial
                  condition, business, affairs, operations or control of
                  Borrower and/or the Loan Parties, since the date of their
                  respective financial statements most recently delivered to
                  Administrative Agent or any of the Lenders, which change has
                  had or could reasonably be expected to have a Material Adverse
                  Effect, with the Administrative Agent and the Lenders
                  acknowledging notice of the potential loss for the quarter
                  ending December 31, 2003, to be incurred by CSC and the
                  Borrower as a result of the restructuring necessary in
                  connection with the recently completed equity offering by CSC
                  (the "Fourth Quarter Losses") and agreeing that for purposes
                  of this Section 5.1.2(i), the Fourth Quarter Losses shall be
                  deemed not to have a Material Adverse Effect; and Borrower and
                  the other Loan Parties shall have furnished Administrative
                  Agent such other financial information, and certifications as
                  reasonably requested by the Administrative Agent.

                           (ii) The Borrower shall have provided to the
                  Administrative Agent such certificates and other evidence as
                  the Administrative Agent may reasonably require to evidence
                  that the Borrower, CSC and each of the Borrowing Base Property
                  Owners (both before and after giving effect to the Loan) is
                  solvent, has assets having a fair value in excess of the
                  amount required to pay such Person's probable liabilities and
                  existing Debts as such become absolute and mature, and has
                  adequate capital for the conduct of such Person's business and
                  the ability to pay such Person's Debts from time to time
                  incurred in connection therewith as such Debts mature,
                  including the Closing Compliance Certificate (the "Closing
                  Compliance Certificate") set forth as Exhibit CC hereto.

                  5.1.3 Warranties and Representations Accurate. All warranties
         and representations made by or on behalf of any of the Borrower and the
         other Loan Parties,

                                      -21-
<PAGE>

         or any of them, to Administrative Agent or any of the Lenders shall be
         true, accurate and complete in all material respects and shall not omit
         any material fact necessary to make the same not misleading.

                  5.1.4 Validity and Sufficiency of Security Documents. The
         Security Documents shall create a valid and perfected lien in and to
         the Collateral and each of the Security Documents and related UCC
         filings shall have been duly recorded and filed to the satisfaction of
         Administrative Agent and Administrative Agent's counsel, including,
         without limitation, as follows:

                           (i) Prior to funding the Loan Advances, the Borrower,
                  the other Loan Parties, and any other Persons executing Loan
                  Documents on the Closing Date shall have delivered to the
                  Administrative Agent with respect to the Security Documents
                  or, in the case of UCC-1 financing statements, delivery of
                  such financing statements in proper form for recording, and
                  shall have taken all such other actions as may be necessary
                  or, in the reasonable opinion of the Administrative Agent,
                  desirable to perfect the Liens and security interests intended
                  to be created by the Security Documents in the Collateral
                  covered thereby. Notwithstanding the foregoing, the
                  recordation of the Security Documents and the UCC filings
                  shall not be a condition precedent under this Section 5.1.4
                  provided that Administrative Agent shall obtain satisfactory
                  gap title insurance coverage. Such filings, recordings and
                  other actions shall include, without limitation, in addition
                  to the Mortgage, the Assignment of Leases and Rents, and the
                  UCC-1 financing statements; and

                           (ii) on or prior to the Closing Date, the
                  Administrative Agent shall have received the results of a UCC,
                  tax lien and judgment search as may be reasonably requested by
                  the Administrative Agent with respect to the Borrower, the
                  Borrower Subsidiaries, and any other Loan Parties, and the
                  results of such search shall indicate there are no judgments
                  which the Administrative Agent shall reasonably determine in
                  good faith could reasonably be expected to have a Material
                  Adverse Effect or Liens not permitted under the Loan Documents
                  or to be satisfied with the proceeds of the initial Loan
                  Advance or otherwise permitted by Administrative Agent.

                  5.1.5 Litigation. On the Closing Date, there shall not be any
         actions, suits or proceedings at law or in equity or by or before any
         governmental instrumentality or other agency or regulatory authority by
         any entity (private or governmental) pending or, to the best of the
         Borrower's knowledge, threatened with respect to the Loan, the
         transactions contemplated in the Loan Documents, or the Borrower, any
         other Loan Party, or any other Borrower Subsidiary, which are not fully
         covered (subject to deductibles) by an insurance policy issued by a
         reputable and financially viable insurance company, or, to the extent
         not so covered, which the Administrative Agent shall reasonably
         determine in good faith could reasonably be expected to have a Material
         Adverse Effect.

                  5.1.6 Formation Documents and Entity Agreements.

                           (i) On the Closing Date, the Administrative Agent
                  shall have received a certificate of an officer of each
                  limited liability company which is a manager or general
                  partner of a Loan Party or limited partnership which is a
                  general partner of a Loan Party annexing and certifying as to
                  (a) resolutions of such limited liability

                                      -22-

<PAGE>

                  company authorizing and approving the transactions
                  contemplated by the Loan Documents, and the execution and
                  delivery thereof by such limited liability company in respect
                  of the documents to which it is a party on its own behalf, or
                  as a general partner or manager of such other Loan Party or
                  limited partnership, in respect of any of the Loan Documents,
                  (b) signatures and incumbency of all officers of such limited
                  liability company executing documentation on behalf of such
                  entity or on behalf of any entity as to which such limited
                  liability company is a general partner or manager, as the case
                  may be, in connection with the transactions contemplated by
                  the Loan Documents, (c) the Formation Documents of such
                  limited liability company, the Loan Party which it is a
                  manager or general partner of, the limited partnership which
                  it is general partner of, and the Loan Party which such
                  limited partnership is a general partner of, having been duly
                  executed, delivered and filed (to the extent required by
                  applicable Legal Requirements) and remaining in full force and
                  effect and unmodified except as stated therein as of the date
                  of such certificate (and annexing copies thereof) and (d) such
                  limited liability company, the Loan Party which it is a
                  manager or general partner of, the limited partnership which
                  it is general partner of, and the Loan Party which such
                  limited partnership is a general partner of, being in good
                  standing and authorized to do business in each jurisdiction
                  where the conduct of its business and ownership of its assets
                  requires such qualification.

                           (ii) On the Closing Date, the Administrative Agent
                  shall have received a certificate of the secretary of each
                  corporation which is a Loan Party or the general partner of
                  another Loan Party annexing and certifying as to (a) corporate
                  resolutions of such entity authorizing and approving the
                  transactions contemplated by the Loan Documents, and the
                  execution and delivery thereof by such entity in respect of
                  the documents to which it is a party on its own behalf, or as
                  a general partner of such other Loan Party, in respect of any
                  of the Loan Documents, (b) signatures and incumbency of all
                  officers of such corporation executing documentation on behalf
                  of such entity or on behalf of any entity as to which such
                  corporation is a general partner, in connection with the
                  transactions contemplated by the Loan Documents, (c) the
                  Formation Documents of such corporation and Loan Party having
                  been duly executed, delivered and filed (to the extent
                  required by applicable Legal Requirements) and remaining in
                  full force and effect and unmodified except as stated therein
                  as of the date of such certificate (and annexing copies
                  thereof) and (d) such corporation and Loan Party being in good
                  standing and authorized to do business in each jurisdiction
                  where the conduct of its business and ownership of its assets
                  requires such qualification.

                  5.1.7 Compliance With Law. Administrative Agent and each of
         the Lenders shall have received and approved evidence that there are no
         Legal Requirements which prohibit or adversely limit the capacity or
         authority of the Borrower or any Loan Party to enter into the Loan and
         perform the obligations of such Person with respect thereto.

                  5.1.8 Compliance With Financial Covenants. Administrative
         Agent shall have received the Closing Compliance Certificate or other
         evidence reflecting the Borrower's compliance with the Financial
         Covenants and the terms and conditions hereof subject, however, to the
         Fourth Quarter Losses.

                  5.1.9 Borrowing Base Property Due Diligence. Administrative
         Agent shall have received and completed a review of such due diligence
         as the Administrative Agent

                                      -23-
<PAGE>

         may reasonably require with respect to any Borrowing Base Property,
         consistent with customary commercial lending practices for properties
         of a similar nature including, without limitation, satisfaction of the
         Borrowing Base Property Requirements.

                  5.1.10 Condition of Property. There shall have been no
         material unrepaired or unrestored damage or destruction by fire or
         otherwise to any of the real or tangible personal property comprising
         or intended to comprise the Borrowing Base Properties.

                  5.1.11 Insurance. Borrower shall have provided to
         Administrative Agent with respect to each Borrowing Base Property, the
         Borrower and the Collateral evidence of: (i) insurance coverages which
         meet the property, hazard, and other insurance requirements set forth
         on Exhibit E of this Loan Agreement to the satisfaction of
         Administrative Agent; and (ii) payment of the premiums for such
         insurance in accordance with the requirements set forth in Section
         7.5.3.

                  5.1.12 Third Party Consents and Agreements. The Administrative
         Agent shall have received such third party consents and agreements as
         the Administrative Agent may reasonably require with respect to the
         Loan.

                  5.1.13 Cash Management. The Borrower shall open the Depository
         Account, as provided for herein.

                  5.1.14 Legal and other Opinions. Administrative Agent shall
         have received and approved legal opinion letters from counsel
         representing the Borrower and the other Loan Parties which meet
         Administrative Agent's legal opinion requirements and covering such
         matters incident to the transactions contemplated herein as the
         Administrative Agent may request.

                  5.1.15 No Default. There shall not be any Default under any of
         the Loan
         Documents.

         6. WARRANTIES AND REPRESENTATIONS. The Administrative Agent and the
Lenders acknowledge and agree that all representations and warranties made in
this Section 6 shall be deemed to be made only as of the date hereof; however,
as provided for in Section 6.22, all such representations and warranties shall
be deemed to be reaffirmed as of any proposed Drawdown Date, unless modified by
such additional disclosures as shall be provided to the Administrative Agent in
writing after the date hereof and prior to or with a request for a Loan Advance
and/or the issuance of a Letter of Credit, including the Borrower's continued
compliance with the Financial Covenants, as satisfied by the Closing Compliance
Certificate, or once delivered, the most recent Compliance Certificate delivered
by the Borrower, except to the extent the contemplated action will result in
noncompliance with the Financial Covenants. Subject to such limitations,
Borrower warrants and represents to Administrative Agent and each of the Lenders
for the express purpose of inducing Lenders to enter into this Agreement, to
make each Loan Advance, to issue each Letter of Credit, and to otherwise
complete all of the transactions contemplated hereby as follows:

         6.1 Formation. Each Loan Party has been duly formed and is validly
existing and in good standing as a corporation, partnership or limited liability
company, as the case may be, under the laws of the State of its formation. Each
Loan Party has the requisite corporate, partnership or company power and
authority, as applicable, to own its assets and conduct its businesses as
currently conducted and owned, and to enter into and perform its obligations
under

                                      -24-

<PAGE>

each Loan Document to which it is a party. Each Loan Party is in good standing
and authorized to do business in each jurisdiction where the ownership of its
assets and/or the conduct of its business requires such qualification except
where the failure to be so qualified would not have a Material Adverse Effect.

         6.2 Proceedings; Enforceability. Each Loan Party has taken all
requisite corporate, partnership or company action, as applicable, to authorize
the execution, delivery and performance by such Loan Party of the Loan Documents
to which it is a party. Each Loan Document which is required to be executed and
delivered on or prior to the date on which this representation and warranty is
being made has been duly authorized, executed and delivered and constitutes the
legal, valid and binding obligation of each Loan Party thereto, enforceable
against each such Loan Party in accordance with its respective terms except to
the extent that the enforceability thereof may be limited by applicable
bankruptcy, insolvency and similar laws affecting rights of creditors generally
and to general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law).

         6.3 Conflicts. Neither the execution, delivery and performance of the
Loan Documents by the Loan Parties or compliance by any Loan Party with the
terms and provisions thereof (including, without limitation, the granting of
Liens pursuant to the Security Documents), (i) will contravene any provision of
any law, statute, rule or regulation or any order, writ, injunction or decree of
any court or governmental instrumentality having jurisdiction over Borrower, the
Property or any Loan Party, (ii) will conflict with or result in any breach of
any of the terms, covenants, conditions of, or constitute a default under, or
result in the creation or imposition (or the obligation to create or impose) of
any Lien (except pursuant to the Security Documents) upon any of the property or
assets of any Loan Party pursuant to the terms of any indenture, mortgage, deed
of trust, credit agreement or loan agreement or any other agreement, contract or
instrument to which any Loan Party is a party or by which it or any of its
properties or assets is bound or to which it may be subject, or (iii) will
violate any provision of any Formation Document of any Loan Party.

         6.4 Ownership and Taxpayer Identification Numbers. All of the partners,
owners, stockholders, and members, respectively and as may be applicable, of
each Loan Party (other than the Borrower and CSC) are listed in Exhibit F (as
such may be updated from time to time in accordance with Section 6.22). The
exact correct name and organizational number(s) and federal employment
identification number(s) of the Borrower, CSC and each such Loan Party are
accurately stated in Exhibit F. Each Borrowing Base Property Owner is a
Wholly-Owned Subsidiary of the Borrower or, as stated in Exhibit F, CSC.

         6.5 Litigation. There are no actions, suits or proceedings at law or in
equity or by or before any governmental instrumentality or other agency or
regulatory authority by any entity (private or governmental) pending or, to the
best of each Loan Party's knowledge, threatened with respect to the Loan, the
transactions contemplated in the Loan Documents, or any other Borrower
Subsidiary, which are not fully covered (subject to deductibles) by an insurance
policy issued by a reputable and financially viable insurance company, or, to
the extent not so covered, could have or reasonably be expected to have a
Material Adverse Effect.

         6.6 Information. All factual information furnished by or on behalf of
the Borrower or any Loan Party to the Administrative Agent and/or any of the
Lenders (including, without limitation, all information contained in the Loan
Documents) for purposes of or in connection with this Agreement, the other Loan
Documents or any transaction contemplated herein or therein is, and all other
such factual information hereafter furnished by or on behalf of the

                                      -25-
<PAGE>

Borrower or any Loan Party to the Administrative Agent and/or any of the Lenders
will be, true and accurate in all material respects on the date as of which such
information is dated or certified and not incomplete by omitting to state any
fact necessary to make such information not misleading in any material respect
at such time in light of the circumstances under which such information was
provided. There is no material fact presently known to the Borrower which has
not been disclosed to Administrative Agent, and thereupon disclosed by
Administrative Agent to the Lenders, which could have or reasonably be expected
to have a Material Adverse Effect.

         6.7 Taxes. All Loan Parties have made all required tax filings and are
not delinquent in the payment of any federal, state and local taxes,
assessments, impositions or other governmental charges applicable to them and/or
their respective assets, except to the extent same are being contested in a
manner which complies with the requirements of Section 8.2.3.

         6.8 Financial Information. The Consolidated financial statements of
CSC, the Borrower, and the Loan Parties delivered to the Administrative Agent
(and which statements Administrative Agent has delivered to the Lenders) present
fairly the financial condition of each at the dates of such statements of
financial condition and the results of operations for the periods covered
thereby. Since the dates of the relevant financial statements, no change has
occurred which could reasonably be expected to have a Material Adverse Effect
(with the Fourth Quarter Losses being deemed to not have a Material Adverse
Effect), except as may be disclosed in any update from time to time in
accordance with Section 6.22. All financial statements of the Borrower, the
Borrower Subsidiaries, or any other Loan Parties hereafter furnished to
Administrative Agent or any of the Lenders shall be true, accurate and complete
in all material respects and shall fairly present the financial condition of
Borrower and respective Loan Party as of the date thereof.

         6.9 Control Provisions. The Borrower controls, directly or indirectly,
and without the requirement for consent of any other Person (other than CSC),
the management of each Borrowing Base Property Owner, subject to the rights of
those minority or other equity interest holders as the Administrative Agent may
approve.

         6.10 Formation Documents. The Borrower has delivered or caused to be
delivered to the Administrative Agent true and complete copies of all Formation
Documents of the Loan Parties, and all amendments thereto.

         6.11 Bankruptcy Filings. No Loan Party is contemplating either a filing
of a petition under any state or federal bankruptcy or insolvency laws or the
liquidation of all or a major portion of its assets or property, and the
Borrower has no knowledge of any Person contemplating the filing of any such
petition against any Loan Party.

         6.12 Investment Company. No Loan Party is an "investment company" or a
company "controlled" by an "investment company," within the meaning of the
Investment Company Act of 1940, as amended.

         6.13 Holding Company. No Loan Party is a "holding company," or a
"subsidiary company" of a "holding company," or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company," within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

         6.14     Borrowing Base Properties.

                                      -26-
<PAGE>

                  6.14.1 Each of the Borrowing Base Property Owners possesses
         such Licenses and Permits issued by the appropriate federal, state, or
         local regulatory agencies or bodies necessary to own and operate each
         Borrowing Base Property, except where the failure to possess any such
         License or Permit would not have a Material Adverse Effect. The
         Borrowing Base Property Owners are in material compliance with the
         terms and conditions of all such Licenses and Permits, except where the
         failure so to comply would not, singly or in the aggregate, result in a
         Material Adverse Effect. All of the Licenses and Permits are valid and
         in full force and effect, except where the invalidity of such Licenses
         and Permits or the failure of such Licenses and Permits to be in full
         force and effect would not result in a Material Adverse Effect. Neither
         the Borrower nor any of the Borrowing Base Property Owners has received
         any written notice of proceedings relating to the revocation or
         modification of any such Licenses and Permits which, singly or in the
         aggregate, if the subject of an unfavorable decision, ruling or
         finding, would result in a Material Adverse Effect.

                  6.14.2 (i) The Borrowing Base Property Owners have either (x)
         fee simple title to the Borrowing Base Properties or (y) a leasehold
         estate interest in the Borrowing Base Properties, as set forth in
         Schedule 6.14.2(i) (as such may be updated from time to time in
         accordance with Section 6.22); (ii) the interest of the Borrowing Base
         Property Owners in the Borrowing Base Properties are not subject to any
         Liens except for those in favor of the Administrative Agent for the
         ratable benefit of the Lenders securing the repayment of Obligations
         and other Permitted Liens, (iii) neither the Borrower nor any of the
         Borrowing Base Property Owners has received written notice of the
         assertion of any claim by anyone adverse to any Loan Party's ownership,
         or leasehold rights in and to any Borrowing Base Property (except as
         may be disclosed in any update from time to time in accordance with
         Section 6.22); (iv) no Person has an option or right of first refusal
         to purchase all or part of any Borrowing Base Property or any interest
         therein which has not been waived (except as may be disclosed in
         Schedule 6.14.2(i) or in any update from time to time in accordance
         with Section 6.22);

                  6.14.3 Except to the extent the failure of the following to be
         true would not result in a Material Adverse Effect or is disclosed in
         the Environmental Reports (as defined in the Environmental Indemnity)
         or in the S-11 registration statement filed by CSC on October 23, 2003,
         (i) each Borrowing Base Property is free of any Hazardous Materials in
         violation of any Environmental Legal Requirements applicable to such
         property; (ii) none of the Borrowing Base Property Owners or Borrower
         has received any written notice of a claim under or pursuant to any
         Environmental Legal Requirements applicable to a Borrowing Base
         Property or under common law pertaining to Hazardous Materials on or
         originating from any Borrowing Base Property (except as may be
         disclosed in any update from time to time in accordance with Section
         6.22); and (iii) none of the Borrowing Base Property Owners or Borrower
         has received any written notice from any Governmental Authority
         claiming any material violation of any Environmental Legal Requirements
         that is uncured or unremediated (except as may be disclosed in any
         update from time to time in accordance with Section 6.22);

                  6.14.4 Except to the extent the failure of the following to be
         true would not result in a Material Adverse Effect, (i) with respect to
         the Borrowing Base Properties, each Major Lease is in full force and
         effect (except as may be disclosed in any update from time to time in
         accordance with Section 6.22), (ii) except as set forth in Schedule
         6.14.4(ii) (as such may be updated from time to time in accordance with
         Section 6.22), to the Borrower's knowledge, none of the Borrowing Base
         Property Owners is in default

                                      -27-
<PAGE>

         after notice and the expiration of all applicable cure periods in the
         performance of any material obligation under any Major Lease and the
         Borrower has no knowledge of any circumstances which, with the passage
         of time or the giving of notice, or both, would constitute an event of
         default by any party under any of the Major Leases, (iii) except as set
         forth in Schedule 6.14.4(iii) (as such may be updated from time to time
         in accordance with Section 6.22), to the Borrower's knowledge, no
         tenant is in default under any Major Lease, (iv) except as otherwise
         expressly set forth in Schedule 6.14.4(iv) (as such may be updated from
         time to time in accordance with Section 6.22), to the Borrower's
         Knowledge, there are no actions, voluntary or involuntary, pending
         against any tenant under a Major Lease under any bankruptcy or
         insolvency laws, and (v) none of the Major Leases and none of the rents
         or other amounts payable thereunder has been assigned, pledged or
         encumbered by any of the Borrowing Base Property Owners or any other
         Person, except with respect to the Lien in favor of the Administrative
         Agent on behalf of the Lenders securing the repayment of Obligations.

                  6.14.5 Except to the extent the failure of the following to be
         true would not result in a Material Adverse Effect, (i) each Ground
         Lease with respect to a Borrowing Base Property is valid, binding and
         in full force and effect as against the applicable Borrowing Base
         Property Owners and, to the Borrower's knowledge, the other party
         thereto, (ii) none of Borrowing Base Property Owner's interest in the
         Ground Leases is subject to any pledge, lien, assignment, license or
         other agreement granting to any third party any interest therein, and
         (iii) no payments under any Ground Lease with respect to a Borrowing
         Base property are delinquent and no notice of default thereunder has
         been sent or received by any Loan Party which has not been cured or
         waived prior to the date hereof, and to the knowledge of the Borrower,
         there does not exist under any of the Ground Leases any default by any
         Borrowing Base Property Owners or any event which merely with notice or
         lapse of time or both, would constitute such a default by any of the
         Borrowing Base Property Owners, and (iv) the identity of each ground
         lessor under a Ground Lease with respect to a Borrowing Base Property
         and whether each such ground lessor is an Affiliate of any Loan Party
         are set forth in Schedule 6.14.5.

         6.15 Use of Proceeds. The proceeds of the Loan shall be used solely and
exclusively as provided in Section 1.3. No portion of the proceeds of the Loan
shall be used directly or indirectly, and whether immediately, incidentally or
ultimately (i) to purchase or carry any margin stock or to extend credit to
others for the purpose thereof or to repay or refund indebtedness previously
incurred for such purpose, or (ii) for any purpose which would violate or in
inconsistent with the provisions of regulations of the Board of Governors of the
Federal Reserve System including, without limitation, Regulations T, U and X
thereof.

         6.16 Insurance. The Collateral Properties are insured by insurers of
recognized financial responsibility against such losses and risks in compliance
with the requirements of Exhibit E hereto.

         6.17 Deferred Compensation and ERISA. Neither Borrower nor any other
Loan Party, other than CSC, has any pension, profit sharing, stock option,
insurance or other arrangement or Plan for employees covered by ERISA except as
may be designated to Administrative Agent in writing by Borrower from time to
time and, to the best of the Borrower's Knowledge, no Reportable Event has
occurred and is now continuing with respect to any such ERISA Plan. The granting
of the Loan, the performance by Borrower and/or any of the Loan Parties of their
respective obligations under the Loan Documents and Borrower's and/or such other
Loan Parties' conducting of their respective operations do not and will not
violate any provisions of ERISA.

                                      -28-
<PAGE>

         6.18 Conditions Satisfied. Assuming that the Administrative Agent and
the Lenders have approved all matters requiring their approval, all of the
conditions precedent to closing and funding the initial Loan Advance have been
satisfied or waived.

         6.19 No Default. There is no Default on the part of Borrower or any of
the other Loan Parties under this Agreement or any of the other Loan Documents
and no event has occurred and is continuing which could constitute a Default
under any Loan Document.

         6.20 Other Loan Parties' Warranties and Representations. Borrower has
no reason to believe that any warranties or representations made in writing by
any of the Loan Parties to the Administrative Agent or any of the Lenders are
untrue, incomplete or misleading in any material respect.

         6.21 Qualification as a REIT. CSC qualified as a REIT under the
provisions of the Code, as applicable, for its fiscal year ended December 31,
2002, and has remained qualified from December 31, 2002 through the date hereof.
All appropriate federal income tax returns for the fiscal years through December
31, 2002 have been filed by CSC with the IRS and no previously filed return has
been examined and reported on by the IRS. CSC has not incurred any liability for
excise taxes pursuant to Section 4981 of the Code. CSC is organized in
conformity with the requirements for qualification as a REIT pursuant to
Sections 856 through 860 of the Code, and CSC's proposed method of operation
consistent with CSC's business and the business activities contemplated by this
Agreement will enable it to meet the requirements for qualification and taxation
as a REIT under the Code.

         6.22 Regarding Representations and Warranties Each request by any
Borrower for a Loan Advance and/or the issuance of a Letter of Credit: (i) shall
constitute an affirmation by Borrower that the foregoing representations and
warranties remain true and correct as of the date of such request (except as
modified by matters specifically disclosed in writing to Administrative Agent or
as reflected in any update to the representations or warranties, Schedules or
Exhibits referred to in this Article 6 delivered to the Administrative Agent
prior to or simultaneously with such written request) and, unless Administrative
Agent is notified to the contrary prior to the disbursement of the requested
Loan Advance or the issuance of the requested Letter of Credit, will be so on
the date of such Loan Advance or issuance of such Letter of Credit, and (ii)
shall constitute the representation and warranty of Borrower to Administrative
Agent and each of the Lenders that the information set forth in each such
request is true and correct in all material respects and omits no material fact
necessary to make the same not misleading. All representations, warranties,
covenants and agreements made in this Agreement or in the other Loan Documents
by each Loan Party shall be deemed to have been relied upon by the
Administrative Agent and each of the Lenders notwithstanding any investigation
heretofore or hereafter made by the Administrative Agent and/or any of the
Lenders or on its behalf.

         7. AFFIRMATIVE COVENANTS. Borrower covenants and agrees that from the
date hereof and so long as any indebtedness is outstanding hereunder, or any of
the Loan or other obligations remains outstanding, as follows:

         7.1 Notices. Borrower shall within five (5) business days after it has
actual knowledge thereof, notify Administrative Agent in writing (and
Administrative Agent shall thereafter promptly notify the Lenders) of the
occurrence of any act, event or condition which constitutes a Default or Event
of Default under any of the Loan Documents. Such notification shall include a
written statement of any remedial or curative actions which Borrower proposes to

                                      -29-
<PAGE>

undertake and/or to cause any of other Loan Parties to cure or remedy such
Default or Event of Default.

         7.2 Financial Statements; Reports; Officer's Certificates. Borrower
shall furnish or cause to be furnished to Administrative Agent (and
Administrative Agent shall thereafter promptly furnish copies of same to the
Lenders) from time to time, the following financial statements, reports,
certificates, and other information, all in form and manner of presentation
reasonably acceptable to Administrative Agent:

                  7.2.1 Annual Statements. Within ninety (90) days after the
         close of each Fiscal Year, (i) the Consolidated statement of financial
         condition of CSC, as at the end of such Fiscal Year and the related
         Consolidated statement of income and retained earnings and statement of
         cash flows for such Fiscal Year, in each case, commencing with the
         Fiscal Year ending December 31, 2003, setting forth comparative figures
         for the preceding fiscal year and certified by Ernst & Young LLP or
         other independent certified public accountants of recognized national
         standing reasonably acceptable to the Administrative Agent, in an
         unqualified opinion, together with (ii) consolidating income statements
         for the Borrower and each Borrower Subsidiary; such financial
         statements to include and to be supplemented by such detail and
         supporting data and schedules as Administrative Agent may from time to
         time reasonably determine;

                  7.2.2 Periodic Statements Within forty five (45) days after
         the close of each calendar quarter (except for the quarter ending on
         December 31), the following (i) the Consolidated statement of financial
         condition of CSC, as at the end of such quarterly period, the related
         Consolidated statement of income and retained earnings (for the current
         quarter and on a year to date basis), and statement of cash flows (on a
         year to date basis), in each case commencing with the Fiscal Year
         ending December 31, 2004, setting forth comparative figures for the
         related periods in the prior Fiscal Year, internally prepared in
         accordance with GAAP, consistently applied, subject to normal year-end
         audit adjustments, all in form and manner of presentation reasonably
         acceptable to Administrative Agent, such financial statements to
         include and to be supplemented by such detail and supporting data and
         schedules as Administrative Agent may from time to time reasonably
         determine, together with (ii) consolidating income statements for the
         Borrower and each Borrower Subsidiary, (iii) an Officer's Certificate
         from the Borrower certifying that such financial statements fairly
         present the financial condition of CSC and that no Event of Default has
         occurred and is continuing, or if it is, a statement as to the nature
         thereof, (iv) a listing of all filings by Borrower or CSC with the SEC,
         including, without limitation, full copies of Guarantor's 10-Q and 10-K
         filings, and (v) an updated Cash Flow Projection specifically
         identifying, without limitation, (a) any changes to the Cash Flow
         Projection provided in the immediately prior Officer's Certificate and
         (b) any Distributions projected during the next one-hundred and eighty
         (180) days.

                  7.2.3 Borrowing Base Property Reports. Quarterly and annually,
         upon delivery of each of the financial statements required pursuant to
         Sections 7.2.1 and 7.2.2, above, the following financial statements for
         each of the Borrowing Base Property Owners internally prepared by
         Borrower and certified by Borrower to be true, accurate and complete in
         all material respects: (i) to the extent not included in the deliveries
         under Section 7.2.1. or 7.2.2., an operating statement showing all Net
         Operating Income, including, without limitation, the results of
         operation for the current quarter and on a year-to-date basis for the
         period just ended and, annually, an operating statement for the year
         just ended; and (ii) in the form customarily used by the Borrower, a
         detailed, current

                                     -30-

<PAGE>

         rent roll of the subject Borrowing Base Property, containing such
         details as Administrative Agent may reasonably request.

                  7.2.4 SEC Reports. Within five (5) days after being received,
         copies of all correspondence from the SEC, other than routine
         non-substantive general communications from the SEC.

                  7.2.5 Compliance Certificates. Within forty-five (45) days
         after the close of each quarterly accounting period in each Fiscal Year
         of the Borrower (except for the quarter ending on December 31, which
         shall be submitted within ninety days after the close of such quarter),
         a Compliance Certificate in form of Exhibit G, annexed hereto, together
         with an Officer's Certificate from the Borrower providing and otherwise
         certifying the compliance or non-compliance by the Borrower with the
         Financial Covenants, with such supporting detail as is reasonably
         deemed necessary by the Administrative Agent to verify the calculations
         incorporated therein, along with a report containing, to the extent not
         included in the deliveries under Sections 7.2.1, 7.2.2, or 7.2.3 for
         all Individual Properties, a summary listing of all Net Operating
         Income, revenues, rent roll, mortgage Debt, if any, and, in addition,
         for each Individual Property acquired during the quarter just ended,
         the cost basis and the amount and terms of any assumed Debt.

                  7.2.6 Data Requested. Within a reasonable period of time and
         from time to time, such other financial data or information as
         Administrative Agent may reasonably request with respect to the
         Collateral Properties, the Borrower, and/or the other Loan Parties
         including, but not limited to, rent rolls, aged receivables, aged
         payables, leases, budgets, forecasts, reserves, cash flow projections,
         deposit accounts, mortgage information, physical condition of the
         Collateral Properties and pending lease proposals;

                  7.2.7 Tax Returns. Upon Administrative Agent's request, copies
         of all federal and state tax returns of the Borrower and the other Loan
         Parties;

                  7.2.8 Lease Notices. Concurrently with the giving or receipt
         thereof, and within ten (10) Business Days of receipt thereof, copies
         of all notices of default given or received by any Loan Party with
         respect to any Major Lease.

                  7.2.9 Ground Lessor Interest Notices. Concurrently with the
         giving thereof, and within five (5) Business Days of receipt thereof,
         copies of all material notices, other than routine correspondence,
         given or received by any Loan Party with respect to any Ground Lease
         with respect to a Borrowing Base Property.

                  7.2.10 Entity Notices. Concurrently with the issuance thereof,
         copies of all material written notices (excluding routine
         correspondence) given to the partners, owners, stockholders, and/or
         members, respectively, of the Borrower.

                  7.2.11 Property Acquisition or Sale. Within five (5) Business
         Days of receipt thereof, copies of all notices in any way relating to a
         proposed sale or acquisition of any Individual Property by the Borrower
         or any Borrower Subsidiary.

                  7.2.12 Property Finance. Within five (5) Business Days of
         receipt thereof, copies of all notices in any way relating to (a) a
         proposed finance or refinance of any Individual Property by the
         Borrower or any Borrower Subsidiary, (b) the occurrence of

                                      -31-

<PAGE>

         any monetary or material non-monetary default or monetary or material
         non-monetary event of default under any Debt which is recourse the
         Borrower, or any other default or event of default under any Debt which
         is recourse to the Borrower, the occurrence of which could reasonably
         be expected to have a Material Adverse Effect, or (c) the occurrence of
         any monetary or material non-monetary default or monetary or material
         non-monetary event of default under any Debt in excess of
         $10,000,000.00 which is secured by an Individual Property, or any other
         default or event of default under any Debt in excess of $10,000,000.00
         which is secured by an Individual Property, the occurrence of which
         could reasonably be expected to have a Material Adverse Effect.

                  7.2.13 Notice of Litigation. Within ten (10) Business Days
         after an officer of either Borrower, any Borrower Subsidiary, or any
         Loan Party obtains knowledge thereof, written notice of any pending or,
         to the best of the Borrowers' knowledge, threatened action, suit or
         proceeding at law or in equity or by or before any governmental
         instrumentality or other agency or regulatory authority by any entity
         (private or governmental) relating in any way to the Loan, the
         transactions contemplated in the Loan Documents (including, without
         limitation, with regard to all Distributions), or the transactions
         contemplated in any documentation executed in connection therewith, or
         the Borrower, any other Loan Party, or any other Borrower Subsidiary,
         which is not fully covered (subject to deductibles) by an insurance
         policy issued by a reputable and financially viable insurance company,
         or, to the extent not so covered, which could reasonably be expected to
         have a Material Adverse Effect.

         7.3 Existence. Borrower shall do or cause to be done all things
necessary to (i) preserve, renew and keep in full force and effect (x) the
partnership, company or corporate existence, as applicable, of each Loan Party
and (y) the material rights, licenses, permits and franchises of each Loan
Party, (ii) comply with all laws and other Legal Requirements applicable to it
and its assets, business and operations, the non-compliance with which could
reasonably be expected to have a Material Adverse Effect, (iii) to the extent
applicable, at all times maintain, preserve and protect all material franchises
and trade names and all the remainder of its property used or useful in the
conduct of its business, and (iv) keep and cause each Loan Party to keep, its
assets in good working order and repair, ordinary wear and tear and damage by
casualty or taking by condemnation excepted, and from time to time make, or
cause to be made, all reasonably necessary repairs, renewals, replacements,
betterments and improvements thereto.

         7.4 Payment of Taxes. Borrower shall duly pay and discharge, and cause
each Loan Party to duly pay and discharge, before the same shall become overdue,
all taxes, assessments, impositions, and other governmental charges payable by
it or with respect to the Collateral Properties, to the extent that same are not
paid by the tenants under the respective Leases; provided, however, the failure
of any Loan Party to pay such taxes, assessments, impositions, or other
governmental charges shall not constitute a Default or Event of Default as long
as same are being contested in a manner which complies with the requirements of
Section 8.2.3.

         7.5 Insurance; Casualty, Taking.

                  7.5.1 Borrower shall at all times maintain or cause the
         appropriate Person to maintain in full force and effect the following
         insurance: (i) the Collateral Properties shall be insured by insurers
         of recognized financial responsibility against such losses and risks in
         compliance with the Major Leases and the requirements set forth in
         Exhibit E hereto, and (ii) all other assets of the Borrower and the
         Borrower Subsidiaries shall be insured with such insurance as is
         reasonable and usual for Persons conducting business operations

                                      -32-
<PAGE>

         similar to those of the Borrower and in compliance with the terms of
         any secured financing with respect thereto.

                  7.5.2 Without limiting the generality of the insurance
         requirements set forth herein, only if commercially available at
         commercially reasonable rates (in an amount reasonably consistent with
         the amount of such insurance generally obtained by companies engaging
         in real estate business operations of a similar size and nature as that
         of the Borrower) either (i) the insurance policies required hereunder
         shall not include any so called "terrorist exclusion" or similar
         exclusion or exception to insurance coverage relating to the acts of
         terrorist groups or individuals, or (ii) excess or blanket coverage
         with respect thereto shall be provided, which excess or blanket
         coverage must be in an amount, from an insurer, and in accordance with
         terms and conditions reasonably acceptable to the Administrative Agent.

                  7.5.3 All insurance premiums shall be paid, at Borrower's
         option either annually in advance or in installments when due, and
         Administrative Agent shall be provided with evidence of such payment of
         insurance premiums (or evidence of the relevant installment payment)
         prior to each renewal or replacement of such coverages.

                  7.5.4 In the event of any damage or destruction to any
         Collateral Property by reason of fire or other hazard or casualty,
         Borrower shall give immediate written notice thereof to Administrative
         Agent. With respect to any such damage or destruction, the Borrower
         shall make the Mandatory Principal Payment, if any is required, set
         forth herein. If there is any condemnation for public use of any
         Collateral Property Borrower shall give immediate written notice
         thereof to Administrative Agent (and Administrative Agent shall
         thereafter promptly notify the Lenders). With respect to any such
         condemnation, the Borrower shall make the Mandatory Principal Payment,
         if any is required, set forth herein. Further, Borrower shall upon the
         request of the Administrative Agent provide to the Administrative Agent
         a report as to the status of any insurance adjustment, condemnation
         claim, or restoration resulting from any casualty or taking.

         7.6 Inspection. Borrower shall cause the other Loan Parties to permit
the Administrative Agent and the Lenders and its/their agents, representatives
and employees to inspect the Collateral Properties, and any and all other assets
of the Borrower or any of the Loan Parties, at reasonable hours upon reasonable
notice. The Borrower shall be responsible for the reasonable costs incurred by
the Administrative Agent of one (1) such inspection of each Borrowing Base
Property or other asset per year, and all such inspections if an Event of
Default is in existence.

         7.7 Loan Documents. Borrower shall (and shall cause the other Loan
Parties to) observe, perform and satisfy all the terms, provisions, covenants
and conditions to be performed by it under, and to pay when due all costs, fees
and expenses, and other Obligations to the extent required under, the Loan
Documents.

         7.8 Further Assurances. Borrower shall and shall cause the other Loan
Parties to execute and deliver to the Administrative Agent such documents,
instruments, certificates, assignments and other writings, and do such other
acts, necessary or desirable in the reasonable judgment of the Administrative
Agent, to evidence, preserve and/or protect the Collateral at any time securing
or intended to secure the Obligations or for the better and more effective
carrying out of the intents and purposes of this Agreement and the other Loan
Documents.

                                      -33-
<PAGE>

         7.9 Books and Records. Borrower shall and shall cause the other Loan
Parties and Borrower Subsidiaries to keep and maintain in accordance with GAAP
(or such other accounting basis reasonably acceptable to the Administrative
Agent), proper and accurate books, records and accounts reflecting all of the
financial affairs of the Borrower and such other Loan Parties and Borrower
Subsidiaries and all items of income and expense in connection with their
respective business and operations and in connection with any services,
equipment or furnishings provided in connection with the operation of the
business of the Borrower, the other Loan Parties, and the Borrower Subsidiaries,
whether such income or expense is realized thereby or by any other Person. The
Administrative Agent shall have the right, not more than once each quarter
(unless an Event of Default shall have occurred and be continuing in which case
as often as the Administrative Agent shall reasonably determine), during normal
business hours and upon reasonable notice, to examine such books, records and
accounts at the office of the Person maintaining such books, records,
correspondence, and accounts and to make such copies or extracts thereof as the
Administrative Agent shall desire at Administrative Agent's cost and expense.
Borrower shall give the Administrative Agent fifteen (15) Business Days notice
of any change in the location of its financial records from the address
specified at the beginning of this Agreement. The Administrative Agent may
discuss the financial and other affairs of the Borrower, the other Loan Parties,
and the Borrower Subsidiaries with any of its partners, owners, and any
accountants hired by Borrower, it being agreed that Administrative Agent and
each of the Lenders shall use reasonable efforts not to divulge information
obtained from such examination to others except in connection with Legal
Requirements and in connection with administering the Loan, enforcing its rights
and remedies under the Loan Documents and in the conduct, operation and
regulation of its banking and lending business (which may include, without
limitation, the transfer of the Loan or of participation interests therein). Any
assignee or transferee of the Loan, co-lender, or any holder of a participation
interest in the Loan shall deal with such information in the same manner and in
connection with any subsequent transfer of its interest in the Loan or of
further participation interests therein.

         7.10 Business and Operations. Borrower shall (and shall cause the other
Loan Parties and Borrower Subsidiaries to) (i) continue to engage in the type of
businesses, acquisition, sale, financing, development and operation of retail
properties and usual and customary uses incidental to such retail activities
presently conducted by them as of the Closing Date, respectively, and (ii) be
qualified to do business and in good standing under the laws of each
jurisdiction, and otherwise to comply with all Legal Requirements, as and to the
extent the same are required for the ownership, maintenance, management and
operation of the assets of such Person except where the failure to be so
qualified could not reasonably be expected to have a Material Adverse Effect.

         7.11 Title. (i) Borrower shall and shall cause the other Loan Parties
to warrant and defend (x) the title to each item of Collateral owned by such
Person and every part thereof, subject only to the Liens (if any) permitted
hereunder, (y) the validity and priority of the Liens and security interests
held by the Administrative Agent pursuant to the Loan Documents, in each case
against the claims of all Persons whomsoever, and (z) the title to and in the
Collateral Properties, and (ii) Borrower and the other Loan Parties shall be
responsible, jointly and severally, to reimburse Administrative Agent and the
Lenders for any losses, costs, damages or expenses (including reasonable
attorneys' fees and court costs) incurred by the Administrative Agent and/or any
of the Lenders if an interest in any item of Collateral, other than as permitted
hereunder, is claimed by another Person.

         7.12 Estoppel. Borrower shall (and shall cause the other Loan Parties
to), within ten (10) Business Days after a request therefor from the
Administrative Agent, which request shall

                                      -34-

<PAGE>

not be made by Administrative Agent more than once each Fiscal Year, furnish to
the Administrative Agent a statement, duly acknowledged and certified, setting
forth (i) the amount then owing by Borrower in respect of the Obligations, (ii)
the date through which interest on the Loan has been paid, (iii) any offsets,
counterclaims, credits or defenses to the payment by any Loan Party to the
Obligations of which Borrower has knowledge and (iv) whether any written notice
of Default from Administrative Agent to the Borrower or any of the other Loan
Parties is then outstanding and acknowledging that this Agreement and the other
Loan Documents are in full force and effect and unmodified, or if modified,
giving the particulars of such modification.

         7.13 ERISA. Borrower shall (and shall cause each of the other Loan
Parties and Borrower Subsidiaries to) as soon as possible and, in any event,
within ten (10) days after any Loan Party, Borrower Subsidiary, or any ERISA
Affiliate knows of the occurrence of any of the following which could reasonably
be expected to have a Material Adverse Effect, deliver to Administrative Agent a
certificate of an executive officer of the Borrower setting forth details as to
such occurrence and the action, if any, that the applicable Borrower or other
Loan Party or Borrower Subsidiary or such ERISA Affiliate is required or
proposes to take, together with any notices required or proposed to be given to
or filed with or by such Borrower, Loan Party, the ERISA Affiliate, the PBGC, a
Plan participant or the Plan administrator with respect thereto: (i) that a
Reportable Event has occurred; (ii) that an accumulated funding deficiency has
been incurred or an application may be or has been made to the Secretary of the
Treasury for a waiver or modification of the minimum funding standard (including
any required installment payments) or an extension of any amortization period
under Section 412 of the Code with respect to a Plan; (iii) that a contribution
required to be made to a Plan has not been timely made; (iv) that a Plan has
been or may be terminated, reorganized, partitioned or declared insolvent under
Title IV of ERISA; (v) that a Plan has an Unfunded Current Liability giving rise
to a lien under ERISA or the Code; (vi) that proceedings may be or have been
instituted to terminate or appoint a trustee to administer a Plan; (vii) that a
proceeding has been instituted pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Plan; (viii) that such Borrower, Loan Party,
Borrower Subsidiary, or ERISA Affiliate will or may incur any liability
(including any indirect, contingent, or secondary liability) to or on account of
the termination of or withdrawal from a Plan under Section 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan under Section
401(a)(29), 4971, 4975 or 4980 of the Code or Section 409 or 502(i) or 502(l) of
ERISA; or (ix) or that such Borrower, the Loan Party or Borrower Subsidiary may
incur any material liability pursuant to any employee welfare benefit plan (as
defined in Section 3(l) of ERISA) that provides benefits to retired employees or
other former employees (other than as required by Section 601 of ERISA) or any
employee pension benefit plan (as defined in Section 3(2) of ERISA). Upon the
request of the Administrative Agent, the Borrower shall (and shall cause the
other Loan Parties and Borrower Subsidiaries to) deliver to Administrative Agent
a complete copy of the annual report (Form 5500) of each Plan required to be
filed with the Internal Revenue Service. In addition to any certificates or
notices delivered to Administrative Agent pursuant to the first sentence hereof,
copies of any material notices received by the Borrower, a Loan Party, a
Borrower Subsidiary, or any ERISA Affiliate with respect to any Plan shall be
delivered to Administrative Agent no later than ten (10) days after the date
such report has been filed with the Internal Revenue Service or such notice has
been received by such Borrower, Loan Party or Borrower Subsidiary or ERISA
Affiliate, as applicable.

         7.14 Depository Account.

                  7.14.1 Borrower shall maintain an operating and other
         depository account (the "Depository Account") with Fleet National Bank
         (or any successor thereto), unless otherwise agreed by Administrative
         Agent in writing.

                                      -35-

<PAGE>

                  7.14.2 Administrative Agent is hereby authorized, on or after
         the due date, to charge such Depository Account of Borrower with the
         amount of all payments due under this Agreement, the Note or the other
         Loan Documents, with the Borrower's obligation to make any required
         payment being satisfied to the extent there are sufficient collected
         funds in the Depository Account in the amount of such payment.

         7.15 Costs and Expenses. Borrower shall pay all costs and expenses
(excluding salaries or wages of full time employees of Administrative Agent)
reasonably incurred by Administrative Agent in connection with the
implementation and syndication of the Loan and the administration of the Loan,
and reasonably incurred by the Administrative Agent or any of the Lenders in
connection with the enforcement of the Administrative Agent's and Lenders'
rights under the Loan Documents, including, without limitation, legal fees and
disbursements, appraisal fees, inspection fees, plan review fees, travel costs,
fees and out-of-pocket costs of independent engineers and other consultants.
Borrower's obligations to pay such costs and expenses shall include, without
limitation, all reasonable attorneys' fees and other costs and expenses for
preparing and conducting litigation or dispute resolution arising from any
breach by Borrower or the Loan Parties of any covenant, warranty, representation
or agreement under any one or more of the Loan Documents.

         7.16 Appraisals

                  7.16.1 Appraisal. Administrative Agent shall have the right at
         its option, from time to time, to order an appraisal of one or more of
         the Borrowing Base Properties prepared at Administrative Agent's
         direction by an appraiser selected by Administrative Agent (the
         "Appraisal"), after notice to the Borrower. An appraiser selected by
         Administrative Agent shall be an MAI member with an appropriate level
         of professional experience appraising commercial properties in the
         respective area(s) of the Borrowing Base Properties and otherwise
         qualified pursuant to provisions of applicable laws and regulations
         under and pursuant to which Administrative Agent operates.

                  7.16.2 Costs of Appraisal. Borrower shall pay for the costs of
         each Appraisal and each updated Appraisal only (i) after the occurrence
         of an Event of Default, or (ii) in connection with an annual Appraisal
         to be ordered by the Administrative Agent for each Borrowing Base
         Property, or (iii) in connection with any request by the Borrower to
         extend the Initial Maturity Date to the Extended Maturity Date, or (iv)
         if a material adverse change has occurred to any Borrowing Base
         Property.

         7.17 Indemnification. Borrower shall at all times, both before and
after repayment of the Loan, at its sole cost and expense defend, indemnify,
exonerate and save harmless Administrative Agent and each of the Lenders and all
those claiming by, through or under Administrative Agent and each of the Lenders
("Indemnified Party") against and from all damages, losses, liabilities,
obligations, penalties, claims, litigation, demands, defenses, judgments, suits,
proceedings, costs, disbursements or expenses of any kind whatsoever, including,
without limitation, reasonable attorneys' fees and experts' fees and
disbursements, which may at any time (including, without limitation, before or
after discharge or foreclosure of the Security Documents) be imposed upon,
incurred by or asserted or awarded against the Indemnified Party and arising
from or out of:

                           (i) any liability for damage to person or property
                  arising out of any violation of any Legal Requirement, or

                                      -36-
<PAGE>

                           (ii) any and all liabilities, damages, penalties,
                  costs, and expenses, relating in any manner to any brokerage
                  or finder's fees in respect of the Loan arising from any act
                  or course of dealing by the Borrower or any Loan Party, or

                           (iii) any act, omission, negligence or conduct at any
                  Collateral Property, or arising or claimed to have arisen, out
                  of any act, omission, negligence or conduct of Borrower, any
                  Borrower Subsidiary, or any tenant, occupant or invitee
                  thereof which is in any way related to any Collateral
                  Property.

Notwithstanding the foregoing, an Indemnified Party shall not be entitled to
indemnification in respect of claims arising from acts of its own gross
negligence or willful misconduct to the extent that such gross negligence or
willful misconduct is determined by the final judgment of a court of competent
jurisdiction, not subject to further appeal, in proceedings to which such
Indemnified Party is a proper party.

         7.18 Leasing Matters.

                  7.18.1 Administrative Agent's Approval Required.

                           (i) Except as provided for herein, the Loan Parties
                  may enter into, modify, terminate, or amend any Lease for any
                  Individual Property without the approval of the Administrative
                  Agent or the Lenders.

                           (ii) Administrative Agent's prior written approval,
                  which shall not be unreasonably withheld or delayed, shall be
                  required in each instance as to the entering into of any Major
                  Lease.

                           (iii) For any Major Lease requiring approval
                  hereunder, the approval shall relate to: (i) the economic and
                  other terms of the Major Lease; (ii) each tenant under a
                  proposed Major Lease; (iii) each guarantor of a tenant's
                  obligations under a proposed Major Lease; (iv) any material
                  modification or amendment to the Major Lease, and (v) any
                  optional termination, cancellation or surrender of any Major
                  Lease by the Loan Party thereto but not a termination
                  resulting from a default of the tenant thereunder.

                  7.18.2 Borrower's Requests. Subject to Section 7.18.5, any
         request by Borrower for an approval from Administrative Agent with
         respect to leasing matters shall be sent to the Administrative Agent
         and shall be accompanied to the extent available, by the following: (i)
         the proposed lease or amendment or modification thereof complete with
         all applicable schedules and exhibits and a lease abstract; (ii) a
         complete copy of any proposed guaranty; (iii) comprehensive financial
         information with respect to the proposed tenant and, if applicable, the
         proposed guarantor (as to new leases or amendments or modifications to
         existing leases involving material economic changes); and (iv) an
         executive summary of the terms and conditions of the proposed lease
         and, if applicable, the proposed guaranty.

                  7.18.3 Response. The Administrative Agent shall act on
         requests from Borrower for any approval required under Section 7.18.2
         in a commercially reasonable manner and shall use commercially
         reasonable efforts to respond to any such request within ten (10)
         Business Days for approvals required under Section 7.18.2, in each

                                      -37-
<PAGE>

         instance following Administrative Agent's receipt thereof with all
         required supporting information. Administrative Agent's response may
         consist of an approval or disapproval of the request, or a conditional
         approval thereof subject to specified conditions, or a request for
         further data or information, or any combination thereof.

                  7.18.4 Advance Information. In order to expedite the
         processing of requests for such approvals, Borrower agrees to provide
         the Administrative Agent with as much advance information as is
         possible in a commercially reasonable manner in advance of Borrower's
         formal request for an approval.

                  7.18.5 Preliminary Submission.

                           (i) At Borrower's option, after the preparation or
                  execution of a term sheet or letter of intent with any
                  proposed tenant under a Major Lease requiring approval herein,
                  the Borrower may deliver to the Administrative Agent a
                  preliminary submission consisting of, to the extent available,
                  (x) an executive summary or abstract of the terms and
                  conditions of the proposed lease and, if applicable, the
                  proposed guaranty and (y) comprehensive financial information
                  with respect to the proposed tenant and, if applicable, the
                  proposed guarantor. Administrative Agent shall act on requests
                  from Borrower for any approval under this section in a
                  commercially reasonable manner and shall use commercially
                  reasonable efforts to respond to any such request within ten
                  (10) Business Days following Administrative Agent 's receipt
                  thereof. In the event that Administrative Agent approves such
                  summary material and financial information for any Major
                  Lease, the material shall be referred to herein as an
                  "Approved Lease Term Sheet".

                           (ii) Administrative Agent shall not withhold its
                  approval of (x) the economic terms of any lease which are not
                  materially less favorable than the economic terms established
                  by an Approved Lease Term Sheet, or (y) the identity of the
                  tenant and each guarantor, and any terms or other substantive
                  provisions, reflected in an Approved Lease Term Sheet, unless
                  there has been a material adverse change in the financial
                  condition of the tenant or any such guarantor since the
                  approval of such Approved Lease Term Sheet.

         7.19 Interest Expense Coverage. The Interest Expense Coverage as
determined as of each Calculation Date shall be not less than 2.00:1. The
Interest Expense Coverage covenant shall be tested by the Administrative Agent
as of the Calculation Date with results based upon the results for the most
recent Calculation Period, such calculation and results to be verified by the
Administrative Agent.

         7.20 Leverage Ratio. The Leverage Ratio as determined as of each
Calculation Date shall be less than seventy percent (70%). The Leverage Ratio
covenant shall be tested by the Administrative Agent as of each Calculation
Date, such calculation and results to be verified by the Administrative Agent.

         7.21 Fixed Charge Ratio. The Fixed Charge Ratio as determined as of
each Calculation Date shall be not less than 1.50:1. The Fixed Charge Ratio
covenant shall be tested by the Administrative Agent as of each Calculation Date
with results based upon the results for the most recent Calculation Period, such
calculation and results to be verified by the Administrative Agent.

                                      -38-
<PAGE>

         7.22 Net Worth. The Borrower's Net Worth as determined as of each
Calculation Date shall be equal to or greater than the aggregate of (a)
eighty-five percent (85%) of Borrower's Net Worth as of December 31, 2003, plus
(b) eighty-five percent (85%) of the cumulative net cash proceeds received from
and the value of assets acquired (net of Debt incurred or assumed in connection
therewith) through the issuance of Capital Stock by CSC or the Borrower after
December 31, 2003. For purposes of this section "net" means net of underwriters'
discounts, commissions and other reasonable out-of-pocket expenses of issuance
actually paid to any Person (other than a Loan Party or an Affiliate of any Loan
Party). The Net Worth covenant shall be tested by the Administrative Agent as of
each Calculation Date, such calculation and results to be verified by the
Administrative Agent.

         7.23 Borrowing Base Property Covenants.

                  7.23.1 The aggregate Occupancy Ratio for all Borrowing Base
         Properties (determined on an aggregate rentable square foot basis)
         shall not at any time be less than Eighty-Five (85%) percent for a
         period of ninety (90) consecutive days.

                  7.23.2 Each Borrowing Base Property shall at all times be a
         retail center located in the United States owned by a Borrowing Base
         Property Owner.

                  7.23.3 The ownership of each Borrowing Base Property shall at
         all times be consistent with the Borrower's business strategy, and each
         Borrowing Base Property shall at all times be of an asset quality
         consistent with the quality of Borrowing Base Properties owned by the
         Borrowing Base Property Owners as of the date hereof.

         7.24 Variable Rate Debt. The aggregate Pro Rata amount of the Debt
(including the Loan) of the Consolidated CSC Entities and the Unconsolidated CSC
Entities which is Variable Rate Indebtedness shall not exceed thirty percent
(30%) of the Pro Rata amount of such total Debt.

         7.25 Replacement Documentation. Upon receipt of an affidavit of an
officer of Administrative Agent as to the loss, theft, destruction or mutilation
of the Note or any other security document which is not of public record, and,
in the case of any such loss, theft, destruction or mutilation, upon surrender
and cancellation of such Note or other security document, Borrower will issue,
in lieu thereof, a replacement Note or other security document in the same
principal amount thereof and otherwise of like tenor.

         7.26 Other Covenants. The Borrower hereby represents and warrants to
Administrative Agent and the Lenders that no Collateral is in the possession of
any third party bailee (such as at a warehouse). In the event that the Borrower
and/or any of the other Loan Parties, after the date hereof, intends to store or
otherwise deliver any Collateral or other personal property in which the
Administrative Agent has been granted a security interest to such a bailee, then
the Borrower shall receive the prior written consent of the Administrative Agent
not to be unreasonably withheld or delayed and such bailee must acknowledge in
writing that the bailee is holding such Collateral or such other personal
property for the benefit of the Administrative Agent and the Lenders.

         7.27 Maintenance of REIT Status. CSC shall engage in such business
activities, and shall refrain from engaging in such activities, so as to
continue to meet the requirements for qualification and taxation as a REIT under
the Code.

                                      -39-
<PAGE>

         7.28 Lenders' Consultants.

                  7.28.1 Right to Employ. The Borrower agrees that the
         Administrative Agent shall have the right to employ on its behalf and
         on behalf of the Lenders, its own personnel, or one or more engineers,
         architects, environmental advisors, scientists, accountants, and
         attorneys to act as an advisor to Administrative Agent and the Lenders
         in connection with the Loan (each of which shall be a "Lenders'
         Consultant").

                  7.28.2 Functions. The functions of a Lenders' Consultant shall
         include, without limitation: (i) inspection and physical review of any
         Collateral Property; (ii) review and analysis of environmental matters;
         (iii) review and analysis of financial and legal matters; and (iv)
         providing usual inspection and review services in the event of the use
         of Net Proceeds for any Repair Work.

                  7.28.3 Payment. The reasonable costs and fees of Lenders'
         Consultants shall be paid by Borrower upon billing therefor and, if not
         so paid within thirty (30) days, may be paid directly by the Lenders
         through a Loan Advance.

                  7.28.4 Access. Borrower shall provide Lenders' Consultants
         with reasonable access to all Collateral Properties.

                  7.28.5 No Liability. Neither Administrative Agent nor any
         Lender shall have liability to Borrower, any Loan Party, Guarantor, or
         third party on account of: (i) services performed by Lenders'
         Consultant; or (ii) any failure or neglect by Lenders' Consultant to
         properly perform services. Borrower shall have no rights under or
         relating to any agreement, report, or similar document prepared by any
         Lenders' Consultant for Administrative Agent or Lenders. No Lenders'
         Consultant shall have liability to Borrower, any Loan Party, Guarantor,
         or third party on account of: (i) services performed by such Lenders'
         Consultant; or (ii) any failure or neglect by such Lenders' Consultant
         to properly perform services, except for its gross negligence or
         willful misconduct.

         8. NEGATIVE COVENANTS. Borrower covenants and agrees that from the date
hereof and so long as any indebtedness is outstanding hereunder, or any of the
Loan or other obligations remains outstanding, the Borrower shall not (and shall
not suffer or permit the other Loan Parties, and/or the Borrower Subsidiaries
to):

         8.1 No Changes to Borrower and other Loan Parties. Without the prior
written consent of the Administrative Agent, not to be unreasonably withheld or
delayed after not less than thirty (30) days' prior written notice (with
reasonable particularity of the facts and circumstances attendant thereto): (i)
change its jurisdiction of organization, (ii) change its organizational
structure or type, (iii) change its legal name, or (iv) change the
organizational number (if any) assigned by its jurisdiction of formation or its
federal employment identification number (if any). Borrower agrees to take all
such action and execute all such documents as the Administrative Agent may
reasonably require in order to maintain the Administrative Agent's priority and
perfection in the Collateral.

                                      -40-

<PAGE>

         8.2 Restrictions on Liens. Create, incur, assume or suffer to exist any
Lien upon or with respect to any property or assets (real or personal, tangible
or intangible, including, without limitation, the Borrowing Base Properties),
whether now owned or hereafter acquired, or sell any such property or assets
subject to an understanding or agreement, contingent or otherwise, to repurchase
such property or assets (including sales of accounts receivable with recourse)
or assign any right to receive income or permit the filing of any financing
statement under the UCC or any other similar notice of Lien under any similar
recording or notice statute, or grant rights with respect to, or otherwise
encumber or create a security interest in, such property or assets (including,
without limitation, any item of Collateral) or any portion thereof or any other
revenues therefrom or the proceeds payable upon the sale, transfer or other
disposition of such property or asset or any portion thereof, or permit or
suffer any such action to be taken, except the following (singly and
collectively, "Permitted Liens"):

                  8.2.1 Liens created by the Loan Documents;

                  8.2.2 Liens to secure Permitted Debt, provided that (x) the
         Borrower will be in compliance with the Financial Covenants considering
         the consequences of the granting of any such Lien and (y) no such Lien
         shall be secured by any Borrowing Base Property, the ownership interest
         in any Borrowing Base Property Owner, or any other assets of any
         Borrowing Base Property Owner;

                  8.2.3 Liens for taxes, assessments or other governmental
         charges not yet delinquent or which are being diligently contested in
         good faith and by appropriate proceedings, if (x) to the extent such
         contest concerns a Borrowing Base Property, reasonable reserves in an
         amount not less than the tax, assessment or governmental charge being
         so contested shall have been established in a manner reasonably
         satisfactory to the Administrative Agent or deposited in cash (or cash
         equivalents) with the Administrative Agent to be held during the
         pendency of such contest, or such contested amount shall have been duly
         bonded in accordance with applicable law, (y) no imminent risk of sale,
         forfeiture or loss of any interest in any Borrowing Base Property or
         the Collateral or any part thereof arises during the pendency of such
         contest and (z) such contest does not have and could not reasonably be
         expected to have a Material Adverse Effect;

                  8.2.4 Liens in respect of property or assets imposed by law,
         which do not secure Debt, such as judgment Liens (provided such
         judgment Liens do not cause the occurrence of an Event of Default under
         Section 10.1), carriers', warehousemen's, material men's and mechanics'
         liens and other similar Liens arising in the ordinary course of
         business, (x) which, except for such judgment Liens, do not in the
         aggregate materially detract from the value of any property or assets
         or have, and could not reasonably be expected to have, a Material
         Adverse Effect, (y) which, except for such judgment Liens, are being
         contested in good faith by appropriate proceedings, which proceedings
         have the effect of preventing the forfeiture or sale of the property or
         assets subject to any such Lien, and (z) which as to any Borrowing Base
         Property do not have a lien priority prior to the Lien in favor of the
         Administrative Agent, for the benefit of the Lenders, with respect to
         the Obligations, including, without limitation, any future Loan
         Advances;

                  8.2.5 Personal property financing leases entered into in the
         ordinary course of business with respect to equipment, fixtures,
         furniture, furnishings and similar assets

         8.3 Consolidations, Mergers, Sales of Assets, Issuance and Sale of
Equity. (i)

                                      -41-

<PAGE>

Dissolve, terminate, liquidate, consolidate with or merge with or into any other
Person, (ii) issue, sell, lease, transfer or assign to any Persons or otherwise
dispose of (whether in one transaction or a series of transactions) any portion
of its assets (whether now owned or hereafter acquired), including, without
limitation, any securities, membership or partnership interests, or other
interests of any kind in any other Loan Party or Borrower Subsidiary, directly
or indirectly (whether by the issuance of rights of, options or warrants for, or
securities convertible into, any such security, membership or partnership
interests or other interests of any kind), (iii) permit another Person to merge
with or into it, (iv) acquire all or substantially all the capital stock,
membership or partnership interests or assets of any other Person, or (v) take
any action which could have the effect, directly or indirectly, of diluting the
economic interest of any Loan Party in any other Loan Party or Borrower
Subsidiary; except the following:

                  8.3.1 Transfers pursuant to the Security Documents and other
         agreements in favor of Administrative Agent for the ratable benefit of
         the Lenders;

                  8.3.2 Any such dissolution, liquidation, or termination which
         does not involve a Loan Party;

                  8.3.3 With the prior written consent of the Administrative
         Agent and the Lenders, such consent not to be unreasonably withheld or
         delayed, any consolidation, merger, or issuance so long as the Borrower
         is the surviving entity, provided that (x) the Borrower will be in
         compliance with the Financial Covenants considering the consequences of
         such event, (y) no such event shall cause a Change of Control, and (z)
         except as otherwise approved by the Administrative Agent, each
         Borrowing Base Property Owner will continue to be a Wholly-Owned
         Subsidiary of the Borrower or CSC as of the date hereof;

                  8.3.4 Sales of any Borrowing Base Property, provided the
         Release Conditions are satisfied with respect thereto;

                  8.3.5 Leases of all or any portion of any Borrowing Base
         Property which either (i) are permitted by the terms of this Agreement
         without Administrative Agent's consent or approval or (ii) are approved
         as provided for in this Loan Agreement;.

                  8.3.6 Sales, transfers or assignments of other assets of the
         Borrower, any Loan Party or any Borrower Subsidiary which are not
         within the Collateral, provided that the Borrower will be in compliance
         with the Financial Covenants considering the consequences of the sale;
         provided further, however, that the prior written approval of the
         Administrative Agent and the Required Lenders must be obtained (not to
         be unreasonably withheld or delayed), in every instance, in the event
         that the aggregate amount of any such sales, transfers, or assignments
         of said other assets exceeds ten percent (10%) of the Total Asset
         Value, as verified by the Administrative Agent;

                  8.3.7 Sales or dispositions in the ordinary course of business
         of worn, obsolete or damaged items of personal property or fixtures
         which are suitably replaced;

                  8.3.8 Transactions, whether outright or as security, for which
         Administrative Agent's, the Required Lenders' or the Lenders', as
         applicable, prior written consent has been obtained to the extent such
         approval is required under this Agreement;

                  8.3.9 In connection with a Permitted Investment;

                                      -42-
<PAGE>

                  8.3.10 The issuance or sale of equity interests in the
         Borrower or CSC;

                  8.3.11 The sale, transfer, assignment, redemption or other
         disposition of all or a portion of any preferred limited partnership
         interest in Cedar-Riverview LP or Delaware 1851 Associates, L.P.; or

                  8.3.12 Mergers of and between Loan Parties, provided (i) the
         Borrower and CSC shall at all times remain surviving entities, (ii) the
         Administrative Agent receives ten (10) Business Days prior written
         notice of the proposed merger, and (iii) Borrower agrees to take all
         such action and execute all such documents as the Administrative Agent
         may reasonably require in order to maintain the Administrative Agent's
         priority and perfection in the Collateral.

         8.4 Restrictions on Debt. (i) Create, incur or assume any Debt, or make
any voluntary prepayments of any Debt in respect of which it is an obligor, (ii)
enter into, acquiesce, suffer or permit any amendment, restatement or other
modification of the documentation evidencing and/or securing any Debt under
which it is an obligor, (iii) increase the amount of any Debt existing as of the
Closing Date; except with respect to the following (singly and collectively,
"Permitted Debt"):

                  8.4.1 The Obligations;

                  8.4.2 Customary permanent Debt of the Borrower, CSC or any
         Borrower Subsidiary secured by an Individual Property, other than a
         Borrowing Base Property; provided that the Borrower will be in
         compliance with the Financial Covenants considering the consequences of
         the incurrence of such Debt and provided further that the total
         aggregate amount of all such Debt which is secured by more than one
         Individual Property shall not at any time exceed $25,000,000;

                  8.4.3 Individual Property secured Debt of the Borrower, CSC or
         any Borrower Subsidiary which is recourse to the Borrower or CSC
         consistent with customary project finance market terms and conditions
         in an amount not to exceed $50,000,000.00 in the aggregate outstanding
         at any one time, provided that the Borrower will be in compliance with
         the Financial Covenants considering the consequences of the incurrence
         of such Debt;

                  8.4.4 Individual Property secured Debt of the Borrower, CSC or
         any Borrower Subsidiary which is nonrecourse to the Borrower (other
         than recourse in connection with customary nonrecourse or "bad boy"
         carve out provisions) or CSC, provided that the Borrower will be in
         compliance with the Financial Covenants considering the consequences of
         the incurrence of such Debt;

                  8.4.5 Indebtedness incurred in the ordinary course of business
         for the purchase of goods or services which are payable, without
         interest, within ninety (90) days of billing; and

                  8.4.6 Transactions, whether secured or unsecured, for which
         Administrative Agent's prior written consent has been obtained to the
         extent such approval is required under this Agreement; and

                                      -43-

<PAGE>

                  8.4.7 Debt under capital leases of the type described in
         Section 8.2.5.

         8.5 Other Business. Enter into any line of business or make any
material change in the nature of its business, purposes or operations, or
undertake or participate in activities other than the continuance of its present
business except as otherwise specifically permitted by this Agreement or the
other Loan Documents.

         8.6  Change of Control. Permit or otherwise suffer to occur any Change
of Control.

         8.7 Forgiveness of Debt. Voluntarily cancel or otherwise forgive or
release any Debt owed to it by any Person, except for adequate consideration and
except for settlement of lease obligations of tenants in the Borrower's
reasonable business judgement.

         8.8 Affiliate Transactions. Except as disclosed in the S-11
registration statement filed by CSC on October 23, 2003, after the Closing Date,
enter into, or be a party to, any transaction with any Person which is an
Affiliate of any Loan Party, except transactions (a) involving the offering or
sale of a Person's equity interests on an arm's length basis, or (b) entered
into in the ordinary course of business and on terms which are no less favorable
to such Loan Party or Borrower Subsidiary than would be obtained in a comparable
arm's-length transaction with an unrelated third party, provided that this
Section 8.8 shall not apply to transactions between and among Loan Parties or
between and among Borrower Subsidiaries or to transactions between Loan Parties
and Borrower Subsidiaries.

         8.9 ERISA. Except for Code Section 401(k) plans, establish or be
obligated to contribute to any Plan.

         8.10 Bankruptcy Filings. With respect to any of the Loan Parties, file
a petition under any state or federal bankruptcy or insolvency laws for the
liquidation of all or a major portion of its assets or property.

         8.11 Investment Company. Become an "investment company" or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended.

         8.12 Holding Company. Become a "holding company," or a "subsidiary
company" of a "holding company," or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company," within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

         8.13 Use of Proceeds. Permit the proceeds of the Loan, or any other
accommodation at any time made hereunder, to be used for any purpose which
entails a violation of, or is inconsistent with, Regulation T, U or X of the
Board, or for any purpose other than those set forth in Section 1.3.

         8.14 Distributions. Authorize, declare, or pay any Distributions on
behalf of the Borrower, except for Permitted Distributions.

         8.15 Restrictions on Investments. make or permit to exist or to remain
outstanding any Investment except which are in:

                    (i) marketable direct or guaranteed general obligations of
                 the United States of

                                      -44-

<PAGE>

                  America which mature within one year from the date of
                  purchase;

                    (ii) bank deposits, certificates of deposit and banker's
                  acceptances, or other obligations in or of the Lenders or
                  banks located within and chartered by the United States of
                  America or a state and having assets of over $500,000,000.00;

                    (iii) the Borrower's Subsidiaries (both Subsidiaries as of
                  the date hereof and any other Person that becomes a Borrower
                  Subsidiary), subject in all instances to the terms of this
                  Agreement; and

                    (iv) Permitted Investments.

         8.16 Negative Pledges, etc. Enter into any agreement subsequent to the
Closing Date (other than a Loan Document) which (a) prohibits the creation or
assumption of any Lien upon any of the Collateral, including, without
limitation, any hereafter acquired property, (b) specifically prohibits the
amendment or other modification of this Agreement or any other Loan Document, or
(c) could reasonably be expected to have a Material Adverse Effect.

         9. SPECIAL PROVISIONS.

         9.1 Legal Requirements. Borrower, any Borrower Subsidiary or any Loan
Party may contest in good faith any claim, demand, levy or assessment under any
Legal Requirements by any person or entity if: (i) the contest is based upon a
material question of law or fact raised by Borrower in good faith; (ii) such
Person properly commences and thereafter diligently pursues the contest; (iii)
the contest will not materially impair the ability to ultimately comply with the
contested Legal Requirement should the contest not be successful; (iv) if the
contest concerns a Borrowing Base Property or a Borrowing Base Property Owner,
reasonable reserves in an amount necessary to undertake and pay for such contest
and any corrective or remedial action then or thereafter reasonably likely to be
necessary shall have been established in a manner reasonably satisfactory to the
Administrative Agent or deposited in cash (or cash equivalents) with the
Administrative Agent to be held during the pendency of such contest, or such
contested amount shall have been duly bonded in accordance with applicable law;
(vi) no Event of Default exists; (vii) if the contest relates to an
Environmental Legal Requirement, the conditions set forth in the Environmental
Indemnity relating to such contests shall be satisfied; (viii) no imminent risk
of sale, forfeiture or loss of any interest in any Borrowing Base Property or
the Collateral or any part thereof arises during the pendency of such contest;
and (ix) such contest could not reasonably be expected to have a Material
Adverse Effect.

         9.2 Limited Recourse Provisions.

                  9.2.1 Borrower Fully Liable. Borrower shall be fully liable
         for the Loan and the Obligations of Borrower to the Administrative
         Agent and each of the Lenders.

                  9.2.2 Certain Non-Recourse. This Agreement and all Loan
         Documents have been executed by the undersigned in its capacity as an
         officer of CSC, as general partner of the Borrower on behalf of the
         Borrower or the Loan Parties, and not individually, and none of the
         trustees, officers, directors, members, limited partners, or
         shareholders of the Borrower or CSC or any Loan Party shall be bound or
         have any personal liability hereunder or thereunder except under any
         Guaranty or other Loan Document signed by such Person, other than a
         signature in a representative capacity. Under no circumstances shall
         any party be entitled to seek recourse or commence any action against
         any of the

                                      -45-

<PAGE>

         trustees, officers, directors, members, limited partners, or
         shareholders of the Borrower or CSC or any such Person's personal
         assets for the performance or payment of any obligation hereunder. In
         all other Loan Documents, all parties shall not seek recourse or
         commence any action against any of the trustees, officers, directors,
         members, limited partners, or shareholders of Borrower or CSC or any of
         such Person's personal assets for the performance or payment of any
         obligation hereunder or thereunder, except under any Guaranty or other
         Loan Document signed by such Person, other than a signature in a
         representative capacity.

                  9.2.3 Additional Matters. Nothing contained in the foregoing
         non-recourse provisions or elsewhere shall: (i) limit the right of
         Administrative Agent or any of the Lenders to obtain injunctive relief
         or to pursue equitable remedies under any of the Loan Documents,
         excluding only any injunctive relief ordering payment of obligations by
         any Person or entity for which personal liability does not otherwise
         exist; or (ii) limit the liability of any attorney, law firm,
         accountant or other professional who or which renders or provides any
         written opinion or certificate to Administrative Agent or any of the
         Lenders in connection with the Loan even though such person or entity
         may be a limited partner of Borrower.

         9.3 Payment of Obligations. Upon the return to the Administrative
Agent, or the expiration, of all of the Letters of Credit and the payment in
full of the Obligations, in immediately available funds, including, without
limitation, all unreimbursed costs and expenses of the Administrative Agent and
of each Lender for which the Borrower is responsible, and the termination of the
Loan, the Administrative Agent shall release any security and other collateral
interests as provided for herein and under the other Loan Documents and shall
execute and deliver such documents and termination statements as Borrower or any
other Loan Party reasonably requests to evidence such termination and release.
However, such release by the Administrative Agent shall not be deemed to
terminate or release any Person from any obligation or liability under the Loan
Documents which specifically by its terms survives the payment in full of the
Obligations.

         10. EVENTS OF DEFAULT. The following provisions deal with Default,
Events of Default, notice, grace and cure periods, and certain rights of
Administrative Agent following an Event of Default.

         10.1 Default and Events of Default. The term "Default" as used herein
or in any of the other Loan Documents shall mean any fact or circumstance which
constitutes, or upon the lapse of time, or giving of notice, or both, could
constitute, an Event of Default. The occurrence of any of the following events,
continuing uncured beyond any applicable grace, notice or cure period,
respectively, shall constitute an event of default ("Event of Default"). Upon
the occurrence of any Event of Default described in Section 10.1.8, any and all
Obligations shall become due and payable without any further act on the part of
the Administrative Agent. Upon the occurrence of any other Event of Default, the
Administrative Agent may declare that any and all Obligations shall become
immediately due and payable.

                  10.1.1 Failure to Pay the Loan. The failure by the Borrower to
         pay when due any principal of, interest on, or fees in respect of, the
         Loan, and the specific grace period, if any, allowed for the default in
         question in Section 10.2 or elsewhere in this Agreement shall have
         expired without such default having been cured.

                  10.1.2 Failure to Make Other Payments. The failure by the
         Borrower to pay

                                      -46-
<PAGE>

         when due (or upon demand, if payable on demand) any payment Obligation
         other than any payment Obligation on account of the principal of, or
         interest on, or fees in respect of, the Loan, and the specific grace
         period, if any, allowed for the default in question in Section 10.2 or
         elsewhere in this Agreement shall have expired without such default
         having been cured.

                  10.1.3 Note, Security Documents, and Other Loan Documents. Any
         other default in the performance of any term or provision of the Note,
         or of the Security Documents, or of any of the other Loan Documents, or
         a breach, or other failure to satisfy, any other term, provision,
         condition or warranty under the Note, the Security Documents, or any
         other Loan Document, regardless of whether any then undisbursed portion
         of the Loan is sufficient to cover any payment of money required
         thereby, and the specific grace period, if any, allowed for the default
         in question in Section 10.2 or elsewhere in this Agreement shall have
         expired without such default having been cured.

                  10.1.4 Default under Other Agreements. The occurrence of any
         breach of any covenant or Obligation imposed by, or of any default
         under, any agreement (including any Loan Document) between the
         Administrative Agent and/or the Lenders and the Borrower, and/or the
         Loan Parties in connection with the Loan, or any instrument given by
         the Borrower and such Persons to the Administrative Agent and/or the
         Lenders, in connection with the Loan and the expiry, without cure, of
         any applicable grace period in Section 10.2, elsewhere in this
         Agreement, or in the applicable Loan Document (notwithstanding that the
         Administrative Agent and/or the Lenders may not have exercised all or
         any of its/their rights on account of such breach or default).

                  10.1.5 Representations and Warranties. If any representation
         or warranty made by the Borrower or by any of the other Loan Parties or
         the Borrower Subsidiaries in the Loan Documents was untrue or
         misleading in any material respect as of the date made or deemed made
         (updated as provided for herein), including, without limitation, all
         representations and warranties made in Article 6 herein, and shall have
         a Material Adverse Effect.

                  10.1.6 Affirmative Covenants. The breach of any covenant
         contained in Article 7 herein, including, without limitation, the
         Financial Covenants.

                  10.1.7 Negative Covenants. The breach of any covenant
         contained in Article 8 herein.

                  10.1.8 Financial Status and Insolvency.

                    A. Borrower shall: (i) admit in writing its inability to pay
         its debts generally as they become due; (ii) file a petition in
         bankruptcy or a petition to take advantage of any insolvency act; (iii)
         make an assignment for the benefit of creditors; (iv) consent to, or
         acquiesce in, the appointment of a receiver, liquidator or trustee of
         itself or of the whole or any substantial part of its properties or
         assets; (v) file a petition or answer seeking reorganization,
         arrangement, composition, readjustment, liquidation, dissolution or
         similar relief under the Federal Bankruptcy laws or any other
         applicable law; (vi) have a court of competent jurisdiction enter an
         order, judgment or decree appointing a receiver, liquidator or trustee
         of Borrower, or of the whole or any substantial part of the property or
         assets of Borrower, and such order, judgment or decree shall remain
         unvacated or not set aside or unstayed for ninety (90) days; (vii) have
         a petition filed against it seeking

                                      -47-

<PAGE>

         reorganization, arrangement, composition, readjustment, liquidation,
         dissolution or similar relief under the Federal Bankruptcy laws or any
         other applicable law and such petition shall remain undismissed for
         ninety (90) days; (viii) have, under the provisions of any other law
         for the relief or aid of debtors, any court of competent jurisdiction
         assume custody or control of Borrower or of the whole or any
         substantial part of its property or assets and such custody or control
         shall remain unterminated or unstayed for ninety (90) days; or (ix)
         have an attachment or execution levied against any substantial portion
         of the property of Borrower or against any portion of the Collateral
         which is not discharged or dissolved by a bond within sixty (60) days;
         or

                    B. any such event set forth in subsection A above shall
         occur with respect to any Loan Party;

                  10.1.9 Loan Documents. If any Loan Document for any reason
         other than the satisfaction in full of all Obligations shall cease to
         be in full force and effect (other than in accordance with its terms),
         thereby preventing the Administrative Agent and/or the Lenders from
         obtaining the practical realization of the benefits thereof, or if any
         Loan Document shall be declared null and void or any Loan Party shall
         claim or declare any such Loan Document to no longer be in full force
         and effect or is null and void, or if the Liens and security interests
         purported to be created by any of the Loan Documents shall cease to be
         valid, perfected, first priority (except as otherwise expressly
         provided herein) security interests;

                  10.1.10 Judgments. One or more judgments or decrees shall be
         entered against Borrower or any Loan Party or Borrower Subsidiary
         involving a liability (not paid or fully covered (subject to
         deductibles) by a reputable and solvent insurance company) and such
         judgments and decrees either shall be final and non-appealable or shall
         not be vacated, discharged or stayed or bonded pending appeal for any
         period of sixty (60) consecutive days, and the aggregate amount of all
         such judgments exceeds $750,000.00;

                  10.1.11 ERISA. (i) If any Plan shall fail to satisfy the
         minimum funding standard required for any plan year or part thereof and
         a waiver of such standard or extension of any amortization period is
         not granted under Section 412 of the Code, any Plan shall have had or
         is likely to have a trustee appointed to administer such Plan, any Plan
         is, shall have been or is likely to be terminated or to be the subject
         of a distress termination proceeding under ERISA, any Plan shall have
         an Unfunded Current Liability, a contribution required to be made to a
         Plan has not been timely made, a Loan Party or any ERISA Affiliate has
         incurred or is likely to incur a liability to or on account of a Plan
         under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201,
         4204 or 4212 of ERISA or Section 401(a)(29), 4971, 4975 or 4980 of the
         Code, or a Loan Party has incurred or is likely to incur liabilities
         pursuant to one or more employee welfare benefit plans (as defined in
         Section 3(l) of ERISA) that provide benefits to retired employees or
         other former employees (other than as required by Section 601 of ERISA)
         or employee pension benefit plans (as defined in Section 3(2) of ERISA)
         and any of the foregoing could have a Material Adverse Effect; (ii) if
         there shall result from any such event or events the imposition of a
         lien, the granting of a security interest, or a liability or a material
         risk of incurring a liability which could have, or reasonably be
         expected to have, a Material Adverse Effect; or (iii) if any such lien,
         security interest or liability is imposed or granted and, individually,
         and/or in the aggregate, in the reasonable opinion of the
         Administrative Agent could have, or reasonably be expected to have, a
         Material Adverse Effect.

                                      -48-
<PAGE>

                  10.1.12 Change of Control. If a Change of Control shall occur.

                  10.1.13 Indictment; Forfeiture. The indictment of, or
         institution of any legal process or proceeding against, the Borrower,
         any other Loan Party, and/or any Borrower Subsidiary under any
         applicable law where the relief, penalties, or remedies sought or
         available include the forfeiture of any property of Borrower and/or any
         other such Person and/or the imposition of any stay or other order, the
         effect of which could be to restrain in any material way the conduct by
         the Borrower and/or any other such Person of its business in the
         ordinary course.

                  10.1.14 Termination of Guaranty or Consent. Except as
         otherwise provided herein, the termination or attempted termination of
         any Guaranty by any Guarantor of the Obligations.

                  10.1.15 Generally. A default by Borrower in the performance of
         any term, provision or condition of this Agreement to be performed by
         Borrower, or a breach, or other failure to satisfy, any other term
         provision, condition, covenant or warranty under this Agreement and
         such default remains uncured beyond any applicable specific grace
         period provided for in this Agreement, including, without limitation,
         as set forth in Section 10.2. below.

         10.2 Grace Periods and Notice. As to each of the foregoing events the
following provisions relating to grace periods and notice shall apply:

                  10.2.1 No Notice or Grace Period. There shall be no grace
         period and no notice provision with respect to the payment of principal
         at maturity and/or in connection with a Mandatory Principal Prepayment
         (except as provided in Section 2.3.8. above) and no grace period and no
         notice provision with respect to defaults related to the voluntary
         filing of bankruptcy or reorganization proceedings or an assignment for
         the benefit of creditors, or subject to Sections 10.2.4 and 10.2.5,
         with respect to a breach of warranty or representation under Article 6,
         or (subject to Section 10.2.5) with respect to the breach of any of the
         affirmative covenants set forth in Article 7 (unless a grace or cure
         period is specifically provided for therein) or (subject to Section
         10.2.5) with respect to the breach of any of the negative covenants set
         forth in Article 8.

                  10.2.2 Nonpayment of Interest. As to the nonpayment of
         interest there shall be a three (3) Business Day grace period without
         any requirement of notice from Administrative Agent.

                  10.2.3 Other Monetary Defaults. All other monetary defaults
         shall have a three (3) Business Day grace period following notice from
         Administrative Agent.

                  10.2.4 Nonmonetary Defaults Capable of Cure. As to
         non-monetary Defaults which are reasonably capable of being cured or
         remedied, unless there is a specific shorter or longer grace period
         provided for in this Loan Agreement or in another Loan Document, there
         shall be a thirty (30) day grace period following notice from
         Administrative Agent or, if such Default would reasonably require more
         than thirty (30) days to cure or remedy, such longer period of time not
         to exceed a total of ninety (90) days from Administrative Agent's
         notice as may be reasonably required so long as Borrower shall commence
         reasonable actions to remedy or cure the default within thirty (30)
         days following such

                                      -49-
<PAGE>

         notice and shall diligently prosecute such curative action to
         completion within such ninety (90) day period. However, where there is
         an emergency situation in which there is danger to person or property,
         it shall be an immediate Event of Default if such curative action shall
         not be commenced as promptly as possible. As to breaches of warranties
         and representations there shall be a thirty (30) day grace period
         following notice from Administrative Agent.

                  10.2.5 Borrowing Base Property Defaults. As to any
         non-monetary Defaults which are reasonably capable of being cured or
         remedied by the removal of any Individual Property or Individual
         Properties from being Borrowing Base Properties, there shall be a
         thirty (30) day grace period following notice from the Administrative
         Agent for the Borrower to cure or remedy such Default by paying the
         Release Price with respect thereto, if required.

         11. REMEDIES.

         11.1 Remedies. Upon the occurrence and during the continuance of an
Event of Default, whether or not the indebtedness evidenced by the Note and
secured by the Security Documents shall be due and payable or Administrative
Agent shall have instituted any foreclosure or other action for the enforcement
of the Security Documents or the Note, Administrative Agent may, and shall upon
the direction of the Required Lenders, in addition to any other remedies which
Administrative Agent may have hereunder or under the other Loan Documents, or
otherwise, and not in limitation thereof, and in Administrative Agent's sole and
absolute discretion:

                  11.1.1 Accelerate Debt. Administrative Agent may, and with the
         direction of the Required Lenders shall, declare the indebtedness
         evidenced by the Note and secured by the Security Documents immediately
         due and payable (provided that in the case of a voluntary petition in
         bankruptcy filed by Borrower or an involuntary petition in bankruptcy
         filed against Borrower (after expiration of the grace period, if any,
         set forth in Section 10.1.8), such acceleration shall be automatic).

                  11.1.2 Collateralize Letters of Credit. Administrative Agent
         may require the borrower to deposit into accounts maintained with, and
         pledged to the Administrative Agent, cash proceeds in an amount equal
         to the L/C Exposure, which deposits shall secure the L/C Exposure.

                  11.1.3 Pursue Remedies. Administrative Agent may pursue any
         and all remedies provided for hereunder, under any one or more of the
         other Loan Documents, and/or otherwise.

         11.2 Written Waivers. Except as otherwise provided in Section 13.4, if
a Default or an Event of Default is waived by the Required Lenders, in their
sole discretion, pursuant to a specific written instrument executed by an
authorized officer of Administrative Agent, the Default or Event of Default so
waived shall be deemed to have never occurred.

         11.3 Power of Attorney. For the purpose of exercising the rights
granted by this Article 11, as well as any and all other rights and remedies of
Administrative Agent under the Loan Documents, Borrower hereby irrevocably
constitutes and appoints Administrative Agent (or any agent designated by
Administrative Agent) its true and lawful attorney-in-fact, with full power of
substitution, upon and following any Event of Default which is continuing, to
execute,

                                      -50-

<PAGE>

acknowledge and deliver any instruments and to do and perform any acts in the
name and on behalf of Borrower. In connection with the foregoing power of
attorney, the Borrower hereby grants unto the Administrative Agent (acting
through any of its officers) full power to do any and all things necessary or
appropriate in connection with the exercise of such powers as fully and
effectually as the Borrower might or could do, hereby ratifying all that said
attorney shall do or cause to be done by virtue of this Agreement. The foregoing
power of attorney shall not be affected by any disability or incapacity suffered
by the Borrower and shall survive the same. All powers conferred upon the
Administrative Agent by this Agreement, being coupled with an interest, shall be
irrevocable until this Agreement is terminated by a written instrument executed
by a duly authorized officer of the Administrative Agent.

         12. SECURITY INTEREST AND SET-OFF.

         12.1 Security Interest. Borrower hereby grants (and shall cause each
other Loan Party to grant) to the Administrative Agent and each of the Lenders,
a continuing lien, security interest and right of setoff (with setoff being
subject to Section 12.2 ) as security for all of the Obligations, upon and
against all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Administrative Agent or any of
the Lenders or any entity under the control of FleetBoston Financial Corporation
and its successors and assigns, or in transit to any of them.

         12.2 Set-Off. If any Event of Default occurs, any such deposits,
balances or other sums credited by or due from Administrative Agent, any
affiliate of Administrative Agent or FleetBoston Financial Corporation or any of
the Lenders, or from any such affiliate of Administrative Agent or FleetBoston
Financial Corporation or any of the Lenders, to 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, be set off, appropriated and applied by Administrative Agent
against any or all of Borrower's Obligations irrespective of whether demand
shall have been made and although such obligations may be unmatured, in the
manner set forth herein. Within five (5) Business Days of making any such set
off, appropriation or application, Administrative 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 ADMINISTRATIVE 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 OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED. Each of the Lenders agrees with each other Lender that (a)
if an amount to be set off is to be applied to indebtedness of the Borrower to
such Lender, other than the Obligations evidenced by the Note due to such
Lender, such amount shall be applied ratably to such other indebtedness and to
the Obligations evidenced by the Note due to such Lender, and (b) if such Lender
shall receive from the Borrower, whether by voluntary payment, exercise of the
right of setoff, counterclaim, cross action, enforcement of the claim evidenced
by the Note due to such Lender by proceedings against the Borrower at law or in
equity or by proof thereof in bankruptcy, reorganization, liquidation,
receivership or similar proceedings, or otherwise, and shall retain and apply to
the payment of the Note due to such Lender any amount in excess of its ratable
portion of the payments received by all of the Lenders with respect to
Obligations under the Note due to all of the Lenders, such Lender will make such
disposition and arrangements with the other Lenders with respect to such excess,
either by way of

                                      -51-

<PAGE>

distribution, pro tanto assignment of claims, subrogation or otherwise as shall
result in each Lender receiving in respect of the Note its proportionate payment
as contemplated by this Agreement; provided that if all or any part of such
excess payment is thereafter recovered from such Lender, such disposition and
arrangements shall be rescinded and the amount restored to the extent of such
recovery, but without interest.

         12.3 Right to Freeze. The Administrative Agent and each of the Lenders
shall also have the right, at its option, upon the occurrence of any event which
would entitle the Administrative Agent and each of the Lenders to set off or
debit as set forth in Section 12.2, to freeze, block or segregate any such
deposits, balances and other sums so that Borrower may not access, control or
draw upon the same.

         12.4 Additional Rights. The rights of Administrative Agent, the Lenders
and each affiliate of Administrative Agent and each of the Lenders under this
Article 12 are in addition to, and not in limitation of, other rights and
remedies, including other rights of set off, which Administrative Agent or any
of the Lenders may have.

         13. THE ADMINISTRATIVE AGENT AND THE LENDERS

         13.1 Rights, Duties and Immunities of the Administrative Agent.

                  13.1.1 Appointment of Administrative Agent. Each Lender hereby
         irrevocably designates and appoints Fleet National Bank as
         Administrative Agent of such Lender to act as specified herein and in
         the other Loan Documents, and each such Lender hereby irrevocably
         authorizes the Administrative Agent to take such actions, exercise such
         powers and perform such duties as are expressly delegated to or
         conferred upon the Administrative Agent by the terms of this Loan
         Agreement and the other Loan Documents, together with such other powers
         as are reasonably incidental thereto. The Administrative Agent agrees
         to act as such upon the express conditions contained in this Article
         13. The Administrative Agent shall not have any duties or
         responsibilities except those expressly set forth herein or in the
         other Loan Documents, nor shall it have any fiduciary relationship with
         any Lender, and no implied covenants, responsibilities, duties,
         obligations or liabilities shall be read into this Loan Agreement or
         otherwise exist against the Administrative Agent. Except as provided
         for in Section 13.3, the provisions of this Article 13 are solely for
         the benefit of the Administrative Agent and the Lenders, and the
         Borrower shall not have any rights as a third party beneficiary of any
         of the provisions hereof; provided, however, the Borrower may rely on
         any consent, waiver, approval, certificate or instrument delivered by
         the Administrative Agent as evidencing that the Administrative Agent
         has received, to the extent required hereunder, the prior approval of
         the Required Lenders or the Lenders.

                  13.1.2 Administration of Loan by Administrative Agent. The
         Administrative Agent shall be responsible for administering the Loan on
         a day-to-day basis. In the exercise of such administrative duties, the
         Administrative Agent shall use the same diligence and standard of care
         that is customarily used by the Administrative Agent with respect to
         similar loans held by the Administrative Agent solely for its own
         account.

         Each Lender delegates to the Administrative Agent the full right and
authority on its behalf to take the following specific actions in connection
with its administration of the Loan:

                  (i) to fund the Loan in accordance with the provisions of the
Loan

                                      -52-

<PAGE>

         Documents, but only to the extent of immediately available funds
         provided to the Administrative Agent by the respective Lenders for such
         purpose;

                  (ii) to receive all payments of principal, interest, fees and
         other charges paid by, or on behalf of, the Borrower and, except for
         fees to which the Administrative Agent is entitled pursuant to the Loan
         Documents or otherwise, to distribute all such funds to the respective
         Lenders as provided for hereunder;

                  (iii) to keep and maintain complete and accurate files and
         records of all material matters pertaining to the Loan, and make such
         files and records available for inspection and copying by each Lender
         and its respective employees and agents during normal business hours
         upon reasonable prior notice to the Administrative Agent;

                  (iv) to provide the Lenders with copies of all material and/or
         substantive notices, reports and other information, and notice of all
         material and/or substantive matters or occurrences, obtained by the
         Administrative Agent provided by or with respect to the Borrower or any
         other Loan Party; and

                  (v) to do or omit doing all such other actions as may be
         reasonably necessary or incident to the implementation, administration
         and servicing of the Loan and the rights and duties delegated
         hereinabove.

                  13.1.3 Delegation of Duties. The Administrative Agent may
         execute any of its duties under this Loan Agreement or any other Loan
         Document by or through its agents or attorneys-in-fact, and shall be
         entitled to the advice of counsel concerning all matters pertaining to
         its rights and duties hereunder or under the Loan Documents. The
         Administrative Agent shall not be responsible for the negligence or
         misconduct of any agents or attorneys-in-fact selected by it with
         reasonable care.

                  13.1.4 Exculpatory Provisions. Neither the Administrative
         Agent nor any of its officers, directors, employees, agents,
         attorneys-in-fact or affiliates shall be liable for any action lawfully
         taken or omitted to be taken by it or them under or in connection with
         this Loan Agreement or the other Loan Documents, except for its or
         their gross negligence or willful misconduct. Neither the
         Administrative Agent nor any of its officers, directors, employees,
         agents, attorneys-in-fact or affiliates shall be responsible for or
         have any duty to ascertain, inquire into, or verify (i) any recital,
         statement, representation or warranty made by the Borrower or any of
         its officers or agents contained in this Loan Agreement or the other
         Loan Documents or in any certificate or other document delivered in
         connection therewith; (ii) the performance or observance of any of the
         covenants or agreements contained in, or the conditions of, this Loan
         Agreement or the other Loan Documents; (iii) the state or condition of
         any properties of the Borrower or any other obligor hereunder
         constituting Collateral for the Obligations of the Borrower hereunder,
         or any information contained in the books or records of the Borrower;
         (iv) the validity, enforceability, collectibility, effectiveness or
         genuineness of this Loan Agreement or any other Loan Document or any
         other certificate, document or instrument furnished in connection
         therewith; or (v) the validity, priority or perfection of any lien
         securing or purporting to secure the Obligations or the value or
         sufficiency of any of the Collateral.

                  13.1.5 Reliance by Administrative Agent. The Administrative
         Agent shall be entitled to rely, and shall be fully protected in
         relying, upon any notice, consent, certificate, affidavit, or other
         document or writing believed by it to be genuine and correct

                                      -53-

<PAGE>

         and to have been signed, sent or made by the proper person or persons,
         and upon the advice and statements of legal counsel (including,
         without, limitation, counsel to the Borrower), independent accountants
         and other experts selected by the Administrative Agent. The
         Administrative Agent shall be fully justified in failing or refusing to
         take any action under this Loan Agreement or any other Loan Document
         unless it shall first receive such advice or concurrence of the
         Required Lenders as it deems appropriate or it shall first be
         indemnified to its satisfaction by the Lenders against any and all
         liability and expense which may be incurred by it by reason of the
         taking or failing to take any such action. The Administrative Agent
         shall in all cases be fully protected in acting, or in refraining from
         acting, under this Loan Agreement and the other Loan Documents in
         accordance with any written request of the Required Lenders, and each
         such request of the Required Lenders, and any action taken or failure
         to act by the Administrative Agent pursuant thereto, shall be binding
         upon all of the Lenders; provided, however, that the Administrative
         Agent shall not be required in any event to act, or to refrain from
         acting, in any manner which is contrary to the Loan Documents or to
         applicable law.

                  13.1.6 Notice of Default. The Administrative Agent shall not
         be deemed to have knowledge or notice of the occurrence of any Default
         or Event of Default unless the Administrative Agent has actual
         knowledge of the same or has received notice from a Lender or the
         Borrower referring to this Loan Agreement, describing such Default or
         Event of Default and stating that such notice is a notice of default (a
         "Notice of Default"). In the event that the Administrative Agent
         obtains such actual knowledge or receives such a notice, the
         Administrative Agent shall give prompt notice thereof to each of the
         Lenders. The Administrative Agent shall take such action with respect
         to such Default or Event of Default as shall be reasonably directed by
         the Required Lenders. Unless and until the Administrative Agent shall
         have received such direction, the Administrative Agent may (but shall
         not be obligated to) take such action, or refrain from taking such
         action, with respect to any such Default or Event of Default as it
         shall deem advisable in the best interest of the Lenders.

                  13.1.7 Lenders' Credit Decisions. Each Lender acknowledges
         that it has, independently and without reliance upon the Administrative
         Agent or any other Lender, and based on the financial statements
         prepared by the Borrower and such other documents and information as it
         has deemed appropriate, made its own credit analysis and investigation
         into the business, assets, operations, property, and financial and
         other condition of the Borrower and has made its own decision to enter
         into this Loan Agreement and the other Loan Documents. Each Lender also
         acknowledges that it will, independently and without reliance upon the
         Administrative Agent or any other Lender, and based on such documents
         and information as it shall deem appropriate at the time, continue to
         make its own credit decisions in determining whether or not conditions
         precedent to Closing any Loan hereunder have been satisfied and in
         taking or not taking any action under this Loan Agreement and the other
         Loan Documents.

                  13.1.8 Administrative Agent's Reimbursement and
         Indemnification. The Lenders agree to reimburse and indemnify the
         Administrative Agent, ratably in proportion to their respective
         Commitments, for (i) any amounts not reimbursed by the Borrower for
         which the Administrative Agent is entitled to reimbursement by the
         Borrower under this Loan Agreement or the other Loan Documents, (ii)
         any other expenses incurred by the Administrative Agent on behalf of
         the Lenders in connection with the preparation, execution, delivery,
         administration, amendment, waiver and/or enforcement of this Loan
         Agreement and the other Loan Documents, and (iii) any

                                      -54-

<PAGE>

         liabilities, obligations, losses, damages, penalties, actions,
         judgments, suits, costs, expenses or disbursements of any kind and
         nature whatsoever which may imposed on, incurred by or asserted against
         the Administrative Agent in any way relating to or arising out of this
         Loan Agreement or the other Loan Documents or any other document
         delivered in connection therewith or any transaction contemplated
         thereby, or the enforcement of any of the terms hereof or thereof,
         provided that no Lender shall be liable for any of the foregoing to the
         extent that they arise from the gross negligence or willful misconduct
         of the Administrative Agent. If any indemnity furnished to the
         Administrative Agent for any purpose shall, in the opinion of the
         Administrative Agent, be insufficient or become impaired, the
         Administrative Agent may call for additional indemnity and cease, or
         not commence, to do the action indemnified against until such
         additional indemnity is furnished.

                  13.1.9 Administrative Agent in its Individual Capacity. With
         respect to its Commitment as a Lender, and the Loans made by it and the
         Note issued to it, the Administrative Agent shall have the same rights
         and powers hereunder and under any other Loan Document as any Lender
         and may exercise the same as though it were not the Administrative
         Agent, and the term "Lender" or "Lenders" shall, unless the context
         otherwise indicates, include the Administrative Agent in its individual
         capacity. The Administrative Agent and its subsidiaries and affiliates
         may accept deposits from, lend money to, and generally engage in any
         kind of commercial or investment banking, trust, advisory or other
         business with the Borrower or any subsidiary or affiliate of the
         Borrower as if it were not the Administrative Agent hereunder.

                  13.1.10 Successor Administrative Agent. The Administrative
         Agent may resign at any time by giving thirty (30) days' prior written
         notice to the Lenders and Borrower. The Required Lenders, for good
         cause, may remove Administrative Agent at any time by giving thirty
         (30) days' prior written notice to the Administrative Agent, the
         Borrower and the other Lenders. Upon any such resignation or removal,
         the Required Lenders shall appoint a successor Administrative Agent,
         which successor Administrative Agent shall, if such appointment is
         prior to the occurrence of an Event of Default which is continuing, be
         subject to the approval of the Borrower, which approval shall not be
         unreasonably withheld or delayed. If no successor Administrative Agent
         shall have been so appointed by the Required Lenders and accepted such
         appointment within thirty (30) days after the retiring Administrative
         Agent's giving notice of resignation or the Required Lenders' giving
         notice of removal, as the case may be, then the retiring Administrative
         Agent may appoint, on behalf of the Borrower and the Lenders, a
         successor Administrative Agent. If in such instance the retiring
         Administrative Agent appoints as the successor Administrative Agent a
         Lender, such Lender shall accept such appointment. Each such successor
         Administrative Agent shall be a Lender or a financial institution which
         meets the requirements of an Eligible Assignee. Upon the acceptance of
         any appointment as Administrative Agent hereunder by a successor
         Administrative Agent, such successor Administrative Agent shall
         thereupon succeed to and become vested with all the rights, powers,
         privileges and duties of the retiring Administrative Agent, and the
         retiring Administrative Agent shall be discharged from its duties and
         obligations hereunder and under the other Loan Documents. After any
         retiring Administrative Agent's resignation hereunder, the provisions
         of this Article 13 shall continue in effect for its benefit in respect
         of any actions taken or omitted to be taken by it while it was acting
         as the Administrative Agent hereunder.

                  13.1.11 Duties in the Case of Enforcement. In case one or more
         Events of

                                      -55-
<PAGE>

         Default have occurred and shall be continuing, and whether or not
         acceleration of the Obligations shall have occurred, the Administrative
         Agent may, and shall at the direction of the Required Lenders, and
         provided that the Lenders have given to the Administrative Agent such
         additional indemnities and assurances against expenses and liabilities
         as the Administrative Agent may reasonably request, proceed to enforce
         the provisions of this Loan Agreement and the other Loan Documents
         respecting the foreclosure, the sale, or other disposition of all or
         any part of the Collateral and the exercise of any other legal or
         equitable rights or remedies as it may have hereunder or under any
         other Loan Document or otherwise by virtue of applicable law, or to
         refrain from so acting if similarly requested by the Required Lenders.
         The Administrative Agent shall be fully protected in so acting or
         refraining from acting upon the instruction of the Required Lenders,
         and such instruction shall be binding upon all the Lenders. The
         Required Lenders may direct the Administrative Agent in writing as to
         the method and the extent of any such foreclosure, sale or other
         disposition or the exercise of any other right or remedy, the Lenders
         hereby agreeing to indemnify and hold the Administrative Agent harmless
         from all costs and liabilities incurred in respect of all actions taken
         or omitted in accordance with such direction, provided that the
         Administrative Agent need not comply with any such direction to the
         extent that the Administrative Agent reasonably believes the
         Administrative Agent's compliance with such direction to be unlawful or
         commercially unreasonable in any applicable jurisdiction. The
         Administrative Agent may, in its discretion but without obligation, in
         the absence of direction from the Required Lenders, take such interim
         actions as it believes necessary to preserve the rights of the Lenders
         hereunder and in and to any Collateral securing the Obligations,
         including but not limited to petitioning a court for injunctive relief,
         appointment of a receiver or preservation of the proceeds of any
         Collateral. Each of the Lenders acknowledges and agrees that no
         individual Lender may separately enforce or exercise any of the
         provisions of any of the Loan Documents, including without limitation
         the Note, other than through the Administrative Agent.

         13.2 Respecting Loans and Payments.

                  13.2.1 Procedures for Loans. Administrative Agent shall give
         written notice to each Lender of each request for a Loan Advance, or
         conversion of an existing Loan Advance from a Variable Rate Advance to
         an Effective LIBO Rate Advance, by facsimile transmission, hand
         delivery or overnight courier, not later than 11:00 a.m. (Eastern time)
         (i) three (3) Business Days prior to the making of any Loan Advance,
         (ii) two (2) Business Days prior to any conversion of an existing Loan
         Advance to an Effective LIBO Rate Advance, or (iii) on the first day of
         any conversion to a Variable Rate Advance. Each such notice shall be
         accompanied by a written summary of the request for a Loan Advance and
         shall specify (a) the date of the requested Loan Advance, (b) the
         aggregate amount of the requested Loan Advance, (c) each Lender's pro
         rata share of the requested Loan Advance, and (d) the applicable
         interest rate selected by Borrower with respect to such Loan Advance,
         or any portion thereof, together with the applicable Interest Period,
         if any, selected, or deemed selected, by Borrower. Each Lender shall,
         before 11:00 a.m. (Eastern time) on the date set forth in any such
         request for a Loan Advance, make available to Administrative Agent, at
         an account to be designated by Administrative Agent at Fleet National
         Bank in Boston, Massachusetts, in same day funds, each Lender's ratable
         portion of the requested Loan Advance. After Administrative Agent's
         receipt of such funds and upon Administrative Agent's determination
         that the applicable conditions to making the requested Loan Advance
         have been fulfilled, Administrative Agent shall make such funds
         available to Borrower as provided for in this Loan Agreement. Within a

                                      -56-
<PAGE>

         reasonable period of time following the making of each Loan Advance,
         but in no event later than ten (10) Business Days following such Loan
         Advance, Administrative Agent shall deliver to each Lender a copy of
         Borrower's request for Loan Advance. Promptly after receipt by
         Administrative Agent of written request from any Lender, Administrative
         Agent shall deliver to the requesting Lender the accompanying
         certifications and such other instruments, documents, certifications
         and approvals delivered by or on behalf of Borrower to Administrative
         Agent in support of the requested Loan Advance.

                  13.2.2 Nature of Obligations of Lenders. The obligations of
         the Lenders hereunder are several and not joint. Failure of any Lender
         to fulfill its obligations hereunder shall not result in any other
         Lender becoming obligated to advance more than its Commitment
         Percentage of the Loan, nor shall such failure release or diminish the
         obligations of any other Lender to fund its Commitment Percentage
         provided herein.

                  13.2.3 Payments to Administrative Agent. All payments of
         principal of and interest on the Loan or the Note shall be made to the
         Administrative Agent by the Borrower or any other obligor or guarantor
         for the account of the Lenders in immediately available funds as
         provided in the Note and this Loan Agreement. Except as otherwise
         expressly provided herein, the Administrative Agent agrees promptly to
         distribute to each Lender, on the same Business Day upon which each
         such payment is made, such Lender's proportionate share of each such
         payment in immediately available funds excluding Liquidation Proceeds
         which shall be distributed in accordance with Section 13.2.4 below. The
         Administrative Agent will disburse such payments to the Lenders on the
         date of receipt thereof if received prior to 10:00 a.m. on such date
         and, if not, on the next Business Day. The Administrative Agent shall
         upon each distribution promptly notify Borrower of such distribution
         and each Lender of the amounts distributed to it applicable to
         principal of, and interest on, the proportionate share held by the
         applicable Lender. Each payment to the Administrative Agent under the
         first sentence of this Section shall constitute a payment by the
         Borrower to each Lender in the amount of such Lender's proportionate
         share of such payment, and any such payment to the Administrative Agent
         shall not be considered outstanding for any purpose after the date of
         such payment by the Borrower to the Administrative Agent without regard
         to whether or when the Administrative Agent makes distribution thereof
         as provided above. If any payment received by the Administrative Agent
         from the Borrower is insufficient to pay both all accrued interest and
         all principal then due and owing, the Administrative Agent shall first
         apply such payment to all outstanding interest until paid in full and
         shall then apply the remainder of such payment to all principal then
         due and owing, and shall distribute the payment to each Lender
         accordingly.

                  13.2.4 Distribution of Liquidation Proceeds. Subject to the
         terms and conditions hereof, the Administrative Agent shall distribute
         all Liquidation Proceeds in the order and manner set forth below:

         First:     To the Administrative Agent, towards any fees and any
                    expenses for which the Administrative Agent is entitled to
                    reimbursement under this Agreement or the other Loan
                    Documents not theretofore paid to the Administrative Agent.

         Second:    To all applicable Lenders in accordance with their
                    proportional share based upon their respective Commitment
                    Percentages until all Lenders have been reimbursed for all
                    fees and expenses which such Lenders have previously paid to
                    the Administrative Agent and not theretofore paid to such
                    Lenders.

                                      -57-

<PAGE>

         Third:     To all applicable Lenders in accordance with their
                    proportional share based upon their respective Commitment
                    Percentages until all Lenders have been paid in full all
                    principal and interest due to such Lenders under the Loan,
                    with each Lender applying such proceeds for purposes of this
                    Agreement first against the outstanding principal balance
                    due to such Lender under the Loan and then to accrued and
                    unpaid interest due under the Loan.

         Fourth:    To all applicable Lenders in accordance with their
                    proportional share based upon their respective Commitment
                    Percentages until all Lenders have been paid in full all
                    other amounts due to such Lenders under the Loan including,
                    without limitation, any costs and expenses incurred directly
                    by such Lenders to the extent such costs and expenses are
                    reimbursable to such Lenders by the Borrower under the Loan
                    Documents.

         Fifth:     To the Borrower or such third parties as may be entitled to
                    claim Liquidation Proceeds.

                  13.2.5 Adjustments. If, after Administrative Agent has paid
         each Lender's proportionate share of any payment received or applied by
         Administrative Agent in respect of the Loan and other Obligations, that
         payment is rescinded or must otherwise be returned or paid over by
         Administrative Agent, whether pursuant to any bankruptcy or insolvency
         law, sharing of payments clause of any loan agreement or otherwise,
         such Lender shall, at Administrative Agent's request, promptly return
         its proportionate share of such payment or application to
         Administrative Agent, together with such Lender's proportionate share
         of any interest or other amount required to be paid by Administrative
         Agent with respect to such payment or application.

                  13.2.6 Setoff. If any Lender (including the Administrative
         Agent), acting in its individual capacity, shall exercise any right of
         setoff against a deposit balance or other account of the Borrower held
         by such Lender on account of the obligations of the Borrower under this
         Loan Agreement, such Lender shall remit to the Administrative Agent all
         such sums received pursuant to the exercise of such right of setoff,
         and the Administrative Agent shall apply all such sums for the benefit
         of all of the Lenders hereunder in accordance with the terms of this
         Loan Agreement.

                  13.2.7 Distribution by Administrative Agent. If in the opinion
         of the Administrative Agent distribution of any amount received by it
         in such capacity hereunder or under the Note or under any of the other
         Loan Documents might involve any liability, it may refrain from making
         distribution until its right to make distribution shall have been
         adjudicated by a court of competent jurisdiction or has been resolved
         by the mutual consent of all Lenders. In addition, the Administrative
         Agent may request full and complete indemnity, in form and substance
         satisfactory to it, prior to making any such distribution. If a court
         of competent jurisdiction shall adjudge that any amount received and
         distributed by the Administrative Agent is to be repaid, each person to
         whom any such distribution shall have been made shall either repay to
         the Administrative Agent its proportionate share of the amount so
         adjudged to be repaid or shall pay over to the same in such manner and
         to such persons as shall be determined by such court.

                  13.2.8 Delinquent Lender. If for any reason any Lender shall
         fail or refuse to abide by its obligations under this Loan Agreement,
         including without limitation its obligation to make available to
         Administrative Agent its pro rata share of any Loans,

                                      -58-

<PAGE>

         expenses or setoff (a "Delinquent Lender") and such failure is not
         cured within five (5) days of receipt from the Administrative Agent of
         written notice thereof, then, in addition to the rights and remedies
         that may be available to Administrative Agent, other Lenders, the
         Borrower or any other party at law or in equity, and not at limitation
         thereof, (i) such Delinquent Lender's right to participate in the
         administration of, or decision-making rights related to, the Loans,
         this Loan Agreement or the other Loan Documents shall be suspended
         during the pendency of such failure or refusal, with such Delinquent
         Lender's Commitment not being included when calculating any Required
         Lender or Unanimous Lender decision hereunder, and (ii) a Delinquent
         Lender shall be deemed to have assigned any and all payments due to it
         from the Borrower, whether on account of outstanding Loans, interest,
         fees or otherwise, to the remaining non-delinquent Lenders for
         application to, and reduction of, their proportionate shares of all
         outstanding Loans until, as a result of application of such assigned
         payments the Lenders' respective pro rata shares of all outstanding
         Loans shall have returned to those in effect immediately prior to such
         delinquency and without giving effect to the nonpayment causing such
         delinquency. The Delinquent Lender's decision-making and participation
         rights and rights to payments as set forth in clauses (i) and (ii)
         hereinabove shall be restored only upon the payment by the Delinquent
         Lender of its pro rata share of any Loans or expenses as to which it is
         delinquent, together with interest thereon at the Default Rate from the
         date when originally due until the date upon which any such amounts are
         actually paid.

         The non-delinquent Lenders shall also have the right, but not the
obligation, in their respective, sole and absolute discretion, to acquire for no
cash consideration, (pro rata, based on the respective Commitments of those
Lenders electing to exercise such right) the Delinquent Lender's Commitment to
fund future Loans (the "Future Commitment"). Upon any such purchase of the pro
rata share of any Delinquent Lender's Future Commitment, the Delinquent Lender's
share in future Loans and its rights under the Loan Documents with respect
thereto shall terminate on the date of purchase, and the Delinquent Lender shall
promptly execute all documents reasonably requested to surrender and transfer
such interest, including, if so requested, an Assignment and Acceptance. Each
Delinquent Lender shall indemnify Administrative Agent and each non-delinquent
Lender from and against any and all loss, damage or expenses, including but not
limited to reasonable attorneys' fees and funds advanced by Administrative Agent
or by any non-delinquent Lender, on account of a Delinquent Lender's failure to
timely fund its pro rata share of a Loan or to otherwise perform its obligations
under the Loan Documents.

                  13.2.9 Holders. The Administrative Agent may deem and treat
         the Lender designated in the Register as the proportionate owner of
         such interest in the Note for all purposes hereof unless and until a
         written notice of the assignment, transfer or endorsement thereof, as
         the case may be, shall have been filed with the Administrative Agent.
         Any request, authority or consent of any person or entity who, at the
         time of making such request or giving such authority or consent, is the
         holder of any designated interest in the Note shall be conclusive and
         binding on any subsequent holder, transferee or endorsee, as the case
         may be, of such interest in the Note or of any Note or Note issued in
         exchange therefor.

         13.3 Assignment and Participation.

                  13.3.1 Conditions to Assignment by Lenders. Except as provided
         herein, each Lender may assign to one or more Eligible Assignees all or
         a portion of its interests, rights and obligations under this Loan
         Agreement (including all or a portion of its

                                      -59-
<PAGE>

         Commitment Percentage and Commitment and the same portion of the Loans
         at the time owing to it and the portion of the Note held by it), upon
         satisfaction of the following conditions: (a) each of the
         Administrative Agent, in its reasonable discretion, and the Borrower
         shall have given its prior written consent to such assignment (provided
         that, in the case of the Borrower, such consent shall not be
         unreasonably withheld, delayed, or conditioned and shall not be
         required if a Default or Event of Default shall have occurred and be
         continuing); (b) each such assignment shall be of a constant, and not a
         varying, percentage of all the assigning Lender's rights and
         obligations under this Loan Agreement, (c) each assignment shall be in
         an amount that is at least $5,000,000.00 and is a whole multiple of
         $1,000,000.00, (d) each Lender which is a Lender at the time of such
         assignment shall retain, free of any such assignment, an amount of its
         Commitment of not less than $5,000,000.00, and (e) the parties to such
         assignment shall execute and deliver to the Administrative Agent, for
         recording in the Register (as hereinafter defined), an Assignment and
         Acceptance, substantially in the form of Exhibit H hereto (an
         "Assignment and Acceptance"). Upon such execution, delivery, acceptance
         and recording, from and after the effective date specified in each
         Assignment and Acceptance, which effective date shall be at least five
         (5) Business Days after the execution thereof, and written notice
         thereof to the Borrower, (x) the assignee thereunder shall be a party
         hereto and, to the extent provided in such Assignment and Acceptance,
         have the rights and obligations of a Lender hereunder, and (y) the
         assigning Lender shall, to the extent provided in such assignment and
         upon payment to the Administrative Agent of the registration fee
         referred to in Section 13.3.3, be released from its obligations under
         this Loan Agreement.

                  13.3.2 Certain Representations and Warranties. Limitations,
         Covenants. By executing and delivering an Assignment and Acceptance,
         the parties to the assignment thereunder confirm to and agree with each
         other and the other parties hereto as follows:

                  (a) other than the representation and warranty that it is the
         legal and beneficial owner of the interest being assigned thereby free
         and clear of any adverse claim, the assigning Lender makes no
         representation or warranty, express or implied, and assumes no
         responsibility with respect to any statements, warranties or
         representations made in or in connection with this Loan Agreement or
         the execution, legality, validity, enforceability, genuineness,
         sufficiency or value of this Loan Agreement, the other Loan Documents
         or any other instrument or document furnished pursuant hereto or the
         attachment, perfection or priority of any security interest or
         mortgage;

                  (b) the assigning Lender makes no representation or warranty
         and assumes no responsibility with respect to the financial condition
         of the Borrower and its affiliates, related entities or subsidiaries or
         any other person primarily or secondarily liable in respect of any of
         the Obligations, or the performance or observance by the Borrower or
         any other person primarily or secondarily liable in respect of any of
         the Obligations of any of their obligations under this Loan Agreement
         or any of the other Loan Documents or any other instrument or document
         furnished pursuant hereto or thereto;

                  (c) such assignee confirms that it has received a copy of this
         Loan Agreement, together with copies of the most recent financial
         statements provided by the Borrower as required by the terms of this
         Loan Agreement, together with such other documents and information as
         it has deemed appropriate to make its own credit analysis and decision
         to enter into such Assignment and Acceptance;

                                      -60-

<PAGE>

                  (d) such assignee will, independently and without reliance
         upon the assigning Lender, the Administrative Agent or any other Lender
         and based on such documents and information as it shall deem
         appropriate at the time, continue to make its own credit decisions in
         taking or not taking action under this Loan Agreement;

                  (e) such assignee represents and warrants that it is an
         Eligible Assignee;

                  (f) such assignee appoints and authorizes the Administrative
         Agent to take such action as agent on its behalf and to exercise such
         powers under this Loan Agreement and the other Loan Documents as are
         delegated to the Administrative Agent by the terms hereof or thereof,
         together with such powers as are reasonably incidental thereto;

                  (g) such assignee agrees that it will perform in accordance
         with their terms all of the obligations that by the terms of this Loan
         Agreement are required to be performed by it as a Lender; and

                  (h) such assignee represents and warrants that it is legally
         authorized to enter into such Assignment and Acceptance.

                  13.3.3 Register. The Administrative Agent shall maintain a
         copy of each Assignment and Acceptance delivered to it and a register
         or similar list (the "Register") for the recordation of the names and
         addresses of the Lenders and the Commitment Percentage of, and
         principal amount of the Loan owing to the Lenders from time to time.
         The entries in the Register shall be conclusive, in the absence of
         manifest error, and the Borrower, the Administrative Agent and the
         Lenders may treat each person whose name is recorded in the Register as
         a Lender hereunder for all purposes of this Loan Agreement. The
         Register shall be available for inspection by the Borrower and the
         Lenders at any reasonable time and from time to time upon reasonable
         prior notice. Upon each such recordation, the assigning Lender agrees
         to pay to the Administrative Agent a registration fee in the sum of
         $3,000.00.

                  13.3.4 New Notes. Upon its receipt of an Assignment and
         Acceptance executed by the parties to such assignment, together with
         each Note subject to such assignment, the Administrative Agent shall
         (a) record the information contained therein in the Register, and (b)
         give prompt notice thereof to the Borrower and the Lenders (other than
         the assigning Lender). Within five (5) Business Days after receipt of
         such notice, the Borrower, at its own expense, shall execute and
         deliver to the Administrative Agent, in exchange for each surrendered
         Note, a new Note to the order of such Eligible Assignee in an amount
         equal to the amount assumed by such Eligible Assignee pursuant to such
         Assignment and Acceptance and, if the assigning Lender has retained
         some portion of its obligations hereunder, a new Note to the order of
         the assigning Lender in an amount equal to the amount retained by it
         hereunder. Such new Notes shall provide that they are replacements for
         the surrendered Notes, shall be in an aggregate principal amount equal
         to the aggregate principal amount of the surrendered Notes, shall be
         dated the effective date of such Assignment and Acceptance and shall
         otherwise be substantially the form of the assigned Notes. The
         surrendered Notes shall be cancelled and returned to the Borrower.

                  13.3.5 Participations. Each Lender may sell participations to
         one or more banks or other financial institutions in all or a portion
         of such Lender's rights and obligations under this Loan Agreement and
         the other Loan Documents; provided that (a) each such

                                      -61-

<PAGE>

         participation shall be in a minimum amount of $5,000,000.00, (b) each
         participant shall meet the requirements of an Eligible Assignee, (c)
         any such sale or participation shall not affect the rights and duties
         of the selling Lender hereunder to the Borrower, and (d) the only
         rights granted to the participant pursuant to such participation
         arrangements with respect to waivers, amendments or modifications of
         the Loan Documents shall be the rights to approve waivers, amendments
         or modifications that would reduce the principal of or the interest
         rate on any Loans, extend the term or increase the amount of the
         Commitment of such Lender as it relates to such participant, reduce the
         amount of any commitment fees to which such participant is entitled or
         extend any regularly scheduled payment date for principal or interest.

                  13.3.6 Disclosure. The Borrower agrees that in addition to
         disclosures made in accordance with standard and customary banking
         practices any Lender may disclose information obtained by such Lender
         pursuant to this Loan Agreement to assignees or participants and
         potential assignees or participants hereunder; provided that such
         assignees or participants or potential assignees or participants shall
         agree (a) to treat in confidence such information unless such
         information otherwise becomes public knowledge, (b) not to disclose
         such information to a third party, except as required by law or legal
         process and (c) not to make use of such information for purposes of
         transactions unrelated to such contemplated assignment or
         participation.

                  13.3.7 Miscellaneous Assignment Provisions. Any assigning
         Lender shall retain its rights to be indemnified pursuant to Section
         7.18 with respect to any claims or actions arising prior to the date of
         such assignment. If any assignee Lender is not incorporated under the
         laws of the United States of America or any state thereof, it shall,
         prior to the date on which any interest or fees are payable hereunder
         or under any of the other Loan Documents for its account, deliver to
         the Borrower and the Administrative Agent certification as to its
         exemption from deduction or withholding of any United States federal
         income taxes. Anything contained in this Section 13.3.7 to the contrary
         notwithstanding, any Lender may at any time pledge all or any portion
         of its interest and rights under this Loan Agreement (including all or
         any portion of its Note) to any of the twelve Federal Reserve Banks
         organized under ss.4 of the Federal Reserve Act, 12 U.S.C. ss.341. No
         such pledge or the enforcement thereof shall release the pledgor Lender
         from its obligations hereunder or under any of the other Loan
         Documents.

                  13.3.8 Assignment by Borrower. The Borrower shall not assign
         or transfer any of its rights or obligations under any of the Loan
         Documents without the prior written consent of each of the Lenders.

         13.4 Administrative Matters.

                  13.4.1 Amendment, Waiver, Consent, Etc. Except as otherwise
         provided herein or as to any term or provision hereof which
         specifically provides for the consent or approval of the Administrative
         Agent, the Required Lenders and/or the Lenders, as applicable, no term
         or provision of this Loan Agreement or any other Loan Document may be
         changed, waived, discharged or terminated, nor may any consent required
         or permitted by this Loan Agreement or any other Loan Document be
         given, unless such change, waiver, discharge, termination or consent
         receives the written approval of the Required Lenders.

         Notwithstanding the foregoing, the unanimous written approval of all
the Lenders (other

                                      -62-

<PAGE>

than a Defaulting Lender) shall be required with respect to any proposed
amendment, waiver, discharge, termination, or consent which:

                  (i) has the effect of (a) extending the final scheduled
         maturity or the date of any amortization payment of any Loan or Note,
         (b) reducing the rate or extending the time of payment of interest or
         fees thereon, (c) increasing or reducing the principal amount thereof,
         or (d) otherwise postponing or forgiving any indebtedness thereunder,

                  (ii) releases or discharges any material portion of the
         Collateral other than in accordance with the express provisions of the
         Loan Documents,

                  (iii) amends, modifies or waives any provisions of this
         Section 13.4,

                  (iv) amends any of the Financial Covenants,

                  (v) modifies the percentage specified in the definition of
         Required Lenders,

                  (vi) approves any Individual Property as a Borrowing Base
         Property,

                  (vii) except as otherwise provided in this Loan Agreement,
         changes the amount of any Lender's Commitment or Commitment Percentage,
         or

                  (viii) releases or waives any guaranty of the Obligations or
         indemnifications provided in the Loan Documents;

and provided, further, that without the consent of the Administrative Agent, no
such action shall amend, modify or waive any provision of this Article or any
other provision of any Loan Document which relates to the rights or obligations
of the Administrative Agent.

                  13.4.2 Deemed Consent or Approval. With respect to any
         requested amendment, waiver, consent or other action which requires the
         approval of the Required Lenders or all of the Lenders, as the case may
         be, in accordance with the terms of this Loan Agreement, or if the
         Administrative Agent is required hereunder to seek, or desires to seek,
         the approval of the Required Lenders or all of the Lenders, as the case
         may be, prior to undertaking a particular action or course of conduct,
         the Administrative Agent in each such case shall provide each Lender
         with written notice of any such request for amendment, waiver or
         consent or any other requested or proposed action or course of conduct,
         accompanied by such detailed background information and explanations as
         may be reasonably necessary to determine whether to approve or
         disapprove such amendment, waiver, consent or other action or course of
         conduct. The Administrative Agent may (but shall not be required to)
         include in any such notice, printed in capital letters or boldface
         type, a legend substantially to the following effect:

         "THIS COMMUNICATION REQUIRES IMMEDIATE RESPONSE. FAILURE TO RESPOND
         WITHIN TEN (10) CALENDAR DAYS FROM THE RECEIPT OF THIS COMMUNICATION
         SHALL CONSTITUTE A DEEMED APPROVAL BY THE ADDRESSEE OF THE ACTION
         REQUESTED BY THE BORROWER OR THE COURSE OF CONDUCT PROPOSED BY THE
         ADMINISTRATIVE AGENT AND RECITED ABOVE,"

and if (and only if) the foregoing legend is included by the Administrative
Agent in its

                                      -63-
<PAGE>

communication, a Lender shall be deemed to have approved or consented to such
action or course of conduct for all purposes hereunder if such Lender fails to
object to such action or course of conduct by written notice to the
Administrative Agent within ten (10) calendar days of such Lender's receipt of
such notice.

         13.5 Arranger. Notwithstanding the provisions of this Agreement or of
the other Loan Documents, the Arranger shall have no powers, rights, duties,
responsibilities or liabilities with respect to this Agreement and the other
Loan Documents. To the extent requested by the Administrative Agent, the
Arranger has coordinated, or will coordinate, the initial syndication of the
Loan and the assignment of interests in the Loan.

         14. CASUALTY AND TAKING.

         14.1 Casualty or Taking; Obligation To Repair. In the event of the
occurrence of an Event of Loss as to any Collateral Property, Borrower shall
give immediate written notice thereof to Administrative Agent and proceed with
reasonable diligence, in full compliance with all Legal Requirements and the
other requirements of the Loan Documents, to repair, restore, rebuild or replace
the affected Collateral Property (each, the "Repair Work").

         14.2 Adjustment of Claims. All insurance claims or condemnation or
similar awards shall be adjusted or settled by Borrower, at Borrower's sole cost
and expense, but subject to Administrative Agent's prior written approval for
any Borrowing Base Property, which approval shall not be unreasonably withheld;
provided that (i) the Administrative Agent shall have the right to participate
in any adjustment or settlement for any Borrowing Base Property with respect to
which the Net Proceeds in the aggregate are equal to or greater than Five
Hundred Thousand Dollars ($500,000.00) and (ii) if any Event of Default exists
under any of the Loan Documents, Administrative Agent shall have the right to
adjust, settle, and compromise such claims without the approval of Borrower.

         14.3 Payment and Application of Insurance Proceeds and Condemnation
Awards.

                  14.3.1 Except as otherwise provided for herein, all Net
         Proceeds shall be paid to Administrative Agent and, at Administrative
         Agent's option, be applied to Borrower's Obligations or released, in
         whole or in part, to pay for the actual cost of repair, restora tion,
         rebuilding or replacement (collectively, "Cost To Repair"). If any Net
         Proceeds are received directly by any Loan Party, such Loan Party shall
         hold such Net Proceeds in trust for the Administrative Agent and shall
         promptly deliver such Net Proceeds in kind to the Administrative Agent.
         Notwithstanding any other term or provision of this Agreement, provided
         no Default or Event of Default is then in existence, all Net Proceeds
         related to any Collateral Property which is not a Borrowing Base
         Property shall be released to the Borrower to such repair and
         reconstruction, without the Borrower having to satisfy the conditions
         of section 14.3 and 14.4 hereof.

                  14.3.2 Notwithstanding the terms and provisions hereof, with
         respect to any Borrowing Base Property, if the Net Proceeds do not
         exceed Five Hundred Thousand Dollars ($500,000.00) and the
         Insurance/Taking Release Conditions have been satisfied in a manner
         reasonably acceptable to the Administrative Agent, Administrative Agent
         shall release the Net Proceeds to pay for the actual Cost to Repair and
         the applicable Loan Party shall commence and diligently prosecute to
         completion, the Repair Work relative to the subject Collateral
         Property, with any excess being retained by the applicable Loan Party.

                                      -64-

<PAGE>

                  14.3.3 Notwithstanding the terms and provisions hereof, with
         respect to any Borrowing Base Property, if either (i) the Net Proceeds
         are equal to or greater than Five Hundred Thousand Dollars
         ($500,000.00) or (ii) the Net Proceeds do not exceed Five Hundred
         Thousand Dollars ($500,000.00), but the Insurance/Taking Release
         Conditions have not been satisfied with respect to such Event of Loss,
         the Administrative Agent shall release so much of the Net Proceeds as
         may be required to pay for the actual Cost To Repair in accordance the
         limitations and procedures set forth in Section 14.4, if the following
         conditions are satisfied in a manner reasonably acceptable to the
         Administrative Agent:

                    (i) no Default or Event of Default shall have occurred and
                  be continuing under the Loan Documents;

                    (ii) in Administrative Agent's good faith judgment such Net
                  Proceeds together with any additional funds as may be
                  deposited with and pledged to Administrative Agent, on behalf
                  of the Lenders, are sufficient to pay for the Cost To Repair.
                  In order to make this determination, Administrative Agent
                  shall be furnished by the Borrower with an estimate of the
                  Cost to Repair accompanied by an independent architect's or
                  engineer's certification as to such Cost to Repair and
                  appropriate plans and specifications for the Repair Work;

                    (iii) the subject Event of Loss was not a Major Event of
                  Loss;

                    (iv) Administrative Agent in the exercise of its reasonable
                  discretion, shall have determined that all rents from Leases
                  of the subject Collateral Property which are to abate pursuant
                  to their terms are to be payable to the Borrowing Base
                  Property Owner, subject to deductibles, if any, permitted
                  pursuant to the insurance policies to be maintained pursuant
                  to this Agreement, from Rent Loss Proceeds;

                    (v) in Administrative Agent's good faith judgment, the
                  Repair Work can reasonably be completed on or before the time
                  required under applicable Legal Requirements; and

                    (vi) the Borrowing Base Property remains a Stabilized Asset.

         14.4 Conditions To Release of Insurance Proceeds. If Administrative
Agent elects or is required to release insurance proceeds, Administrative Agent
may impose reasonable conditions on such release which shall include, but not be
limited to, the following:

                  14.4.1 Prior written approval by Administrative Agent, which
         approval shall not be unreasonably withheld or delayed of plans,
         specifications, cost estimates, contracts and bonds for the Repair
         Work;

                  14.4.2 Waivers of lien, architect's and/or engineer's
         certificates, and other evidence of costs, payments and completion as
         Administrative Agent may reasonably require;

                  14.4.3 The funds shall be released upon final completion of
         the Repair Work, unless Borrower requests earlier funding, in which
         event partial monthly disbursements equal to 90% of the costs of the
         work completed prior to the certification by the

                                      -65-

<PAGE>

         applicable Lender's Consultant and if there is no Lender's Consultant,
         an independent architect or engineer retained by the Borrower, that the
         Repair Work is completed, and then upon final completion of the Repair
         Work as certified by such Lender's Consultant or independent architect
         or engineer, and the receipt by Administrative Agent of satisfactory
         evidence of payment and release of all liens, the balance of the funds
         shall be released;

                  14.4.4 Determination by Administrative Agent that the
         undisbursed balance of such Net Proceeds on deposit with Administrative
         Agent, together with additional funds deposited for the purpose, shall
         be at least sufficient to pay for the remaining Cost To Repair, free
         and clear of all liens and claims for lien;

                  14.4.5 All work to comply with the Legal Requirements
         applicable to the construction of the Improvements; and

                  14.4.6 The absence of any Default under any Loan Documents.

         14.5 The Administrative Agent shall have the right to hire, at the cost
and expense of the Borrower, a Lender's Consultant to assist the Administrative
Agent in the determination of the satisfaction of the conditions provided for
herein for the release of the Net Proceeds, to pay the Costs to Repair and to
periodically inspect the status of the construction of any Repair Work.

         14.6 In the event that the Administrative Agent makes any Net Proceeds
available to any Loan Party for the payment of Costs to Repair as provided for
herein, upon the completion of the Repair Work as certified by the applicable
Lender's Consultant and if there is no Lender's Consultant, an independent
architect or engineer retained by the Borrower, and receipt by Administrative
Agent of satisfactory evidence of payment and release of all liens, any excess
Net Proceeds still held by the Administrative Agent shall be remitted by the
Administrative Agent to the Borrower provided that no Event of Default shall
have occurred and be continuing;

         14.7 The terms and provisions of this Article 14 shall be subject to
the terms and provisions of any Lease as to which the Administrative Agent has
agreed otherwise with respect to the use and disbursement of Net Proceeds in any
agreement entered into between the tenant under such Lease and the
Administrative Agent.

         14.8 The Administrative Agent acknowledges that provided that no Event
of Default has occurred and is continuing, all Rent Loss Proceeds shall be
payable to the Borrower or the applicable Loan Party.

         15. GENERAL PROVISIONS.

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

                                      -66-

<PAGE>

If to Borrower:

                    Cedar Shopping Centers Partnership, L.P.
                    44 South Bayles Avenue
                    Port Washington, New York 11050
                    Attention: Leo S. Ullman
                    FAX Number: (516) 767-6497

         and
                    Attention: Thomas J. O'Keeffe
                    FAX Number: (516) 767-6497

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

                  Cedar Shopping Centers Partnership, L.P.
                  44 South Bayles Avenue
                  Port Washington, New York 11050
                  Attention: Stuart H. Widowski, Esquire
                  FAX Number: (516) 767-6497

         and to:

                  Stroock & Stroock & Lavan LLP
                  180 Maiden Lane
                  New York, NY 10038-4982
                  Attention: Mark A. Levy, Esquire
                  Fax Number: (212) 806-6006

If to Administrative Agent or as Lender:

                    Fleet National Bank
                    100 Federal Street
                    Boston, Massachusetts 02110
                    Attention: James L. Keough
                    Mail Stop: MA DE 10008H
                    FAX Number: (617) 434-6384

                    And

                    Attention: Commercial Real Estate Loan
                               Administration Manager,

                                      -67-
<PAGE>

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

                    Riemer & Braunstein LLP
                    Three Center Plaza
                    Boston, Massachusetts 02108
                    Attention: Kevin J. Lyons, Esquire
                    FAX Number: (617) 880-3456

If to Lenders:

                  COMMERZBANK AG NEW YORK BRANCH
                  2 World Financial Center
                  New York, New York 10281

                  PB CAPITAL CORPORATION
                  590 Madison Avenue
                  New York, New York 10022

                  MANUFACTURERS AND TRADERS TRUST COMPANY
                  One M & T Plaza
                  Buffalo, New York 14240
                  Attention: Office of the General Counsel

                  SOVEREIGN BANK
                  75 State Street, 3rd floor
                  Mail Code: MA1 SST 04-11
                  Boston, Massachusetts 02109
                  Attention: T. Gregory Donahue, Vice President

                  RAYMOND JAMES BANK, FSB
                  710 Carillon Parkway
                  St. Petersburg, Florida 33716

                  CITIZENS BANK
                  3025 Chemical Road 194-0245, Suite 245
                  Plymouth Meeting, Pennsylvania 19462

and to such addresses as set forth in the Assignment and Acceptance.

Any such addressee may change its address for such notices to such other address
in the United States as such addressee shall have specified by written notice
given as set forth above. All periods of notice shall be measured from the
deemed date of delivery.

         A notice shall be deemed to have been given, delivered and received for
the purposes of all Loan Documents upon the earliest of: (i) if sent by such
certified or registered mail, on the third Business Day following the date of
postmark, or (ii) if hand delivered at the specified address by such courier or
overnight delivery service, when so delivered or tendered for delivery during
customary business hours on a Business Day, or (iii) if so mailed, on the date
of actual

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receipt as evidenced by the return receipt, or (iv) if so delivered, upon actual
receipt, or (v) if facsimile transmission is a permitted means of giving notice,
upon receipt as evidenced by confirmation.

         15.2 Limitations on Assignment. Borrower may not assign this Agreement
or the monies due thereunder without the prior written consent of the Lenders in
each instance, but in such event Lenders may nevertheless at their option make
the Loan under this Agreement to Borrower or to those who succeed to the title
of Borrower and all sums so advanced by Lenders shall be deemed a Loan Advance
under this Agreement and not to be modifications thereof and shall be secured by
all of the Collateral given at any time in connection herewith.

         15.3 Further Assurances. Borrower shall upon request from
Administrative Agent from time to time execute, seal, acknowledge and deliver
such further instruments or documents which Administrative Agent may reasonably
require to better perfect and confirm its rights and remedies hereunder, under
the Note, under the Security Documents and under each of the other Loan
Documents.

         15.4 Payments.

                  (i) All payments shall be applied first to the payment of all
fees, expenses and other amounts due to the Administrative Agent (excluding
principal and interest), then to accrued interest, and the balance on account of
outstanding principal; provided, however, that after an Event of Default,
payments will be applied to the obligations of Borrower to Administrative Agent
and the Lenders as Administrative Agent determines in its sole discretion.

                  (ii) Any payments required by this Agreement, the Note or any
of the other Loan Documents, or any other instruments or agreements executed in
connection herewith or therewith, may (but not before the due date thereof) be
deducted by each Lender from the amount, if any, not already advanced, and the
same shall be deemed to be a Loan Advance, or may be deducted from any Loan
Advance due hereunder. Any attorneys' fees, appraisal charge, inspection fee, or
any other expense payable by Borrower as herein provided for, or incurred in
connection with the drafting of the Loan Documents and other instruments
evidencing or securing the Obligations and all other Loan Documents may be
likewise deducted from the amounts, if any, not already advanced or from any
Loan Advance payable to Borrower and, in any event, charged as a Loan Advance
hereunder.

         15.5 Parties Bound. The provisions of this Agreement and of each of the
other Loan Documents shall be binding upon and inure to the benefit of Borrower
and the Administrative Agent and each of the Lenders and their respective
successors and assigns, except as otherwise prohibited by this Agreement or any
of the other Loan Documents.

         This Agreement is a contract by and among Borrower, the Administrative
Agent and each of the Lenders for their mutual benefit, and no third person
shall have any right, claim or interest against either Administrative Agent, any
of the Lenders or Borrower by virtue of any provision hereof.

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

                  15.6.1 Substantial Relationship. It is understood and agreed
         that all of the Loan Documents were negotiated, executed and delivered
         in The Commonwealth of Massachusetts, which Commonwealth the parties
         agree has a substantial relationship to

                                      -69-

<PAGE>

         the parties and to the underlying transactions embodied by the Loan
         Documents.

                  15.6.2 Place of Delivery. Borrower agrees to furnish to
         Administrative Agent at the Administrative Agent's office in Boston,
         Massachusetts all further instruments, certifications and documents to
         be furnished hereunder.

                  15.6.3 Governing Law. This Agreement, except as otherwise
         provided in Section 15.6.4, and each of the other Loan Documents shall
         in all respects be governed, construed, applied and enforced in
         accordance with the internal laws of The Commonwealth of Massachusetts
         without regard to principles of conflicts of law, except insofar as the
         formation of Borrower under Delaware law requires Delaware law to apply
         with respect to matters of authorization to enter into the transactions
         contemplated by this Agreement.

                  15.6.4 Exceptions. Notwithstanding the foregoing choice of
         law:

                    (i) The procedures governing the enforcement by
                  Administrative Agent of its foreclosure and other remedies
                  under the Security Documents and under the other Loan
                  Documents with respect to each Collateral Property shall be
                  governed by the laws of the State in which such Collateral
                  Property is located;

                    (ii) Administrative Agent shall comply with applicable law
                  of such State to the extent required by the law of such
                  jurisdiction in connection with the foreclosure of the
                  security interests and liens created under the Security
                  Documents and the other Loan Documents with respect to each
                  Collateral Property or other assets situated in such State;
                  and

                    (iii) provisions of Federal law and the law of such State
                  shall apply in defining the terms Hazardous Materials,
                  Environmental Legal Requirements and Legal Requirements
                  applicable to each Collateral Property as such terms are used
                  in this Loan Agreement, the Environmental Indemnity and the
                  other Loan Documents.

         Nothing contained herein or any other provisions of the Loan Documents
         shall be construed to provide that the substantive laws of any other
         State shall apply to any parties, rights and obligations under any of
         the Loan Documents, which, except as expressly provided in clauses (i),
         (ii) and (iii) of this Section 15.6.4., are and shall continue to be
         governed by the substantive law of The Commonwealth of Massachusetts,
         except as set forth in clauses (i), (ii) and (iii) of this Section
         15.6.4. In addition, the fact that portions of the Loan Documents may
         include provisions drafted to conform to the law of any other State 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 Loan
         Agreement or in the other Loan Documents. The parties further agree
         that the Administrative Agent may enforce its rights under the Loan
         Documents including, but not limited to, its rights to sue the Borrower
         or to collect any outstanding indebtedness in accordance with
         applicable law.

                  15.6.5 Consent to Jurisdiction. Borrower hereby consents to
         personal jurisdiction in any state or Federal court located within The
         Commonwealth of Massachusetts.

                  15.6.6     JURY TRIAL WAIVER.  BORROWER, ADMINISTRATIVE AGENT,
         AND EACH OF THE LENDERS MUTUALLY HEREBY KNOWINGLY,

                                      -70-

<PAGE>

         VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN
         RESPECT OF ANY LITIGATION BASED ON THIS LOAN AGREEMENT, ARISING OUT OF,
         UNDER OR IN CONNECTION WITH THIS LOAN AGREEMENT 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, INCLUDING, WITHOUT LIMITATION, ANY
         COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF
         ADMINISTRATIVE AGENT OR ANY LENDER RELATING TO THE ADMINISTRATION OF
         THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER
         PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN
         WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS
         PROHIBITED BY LAW, BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO
         CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
         CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO,
         ACTUAL DAMAGES. BORROWER CERTIFIES THAT NO REPRESENTATIVE,
         ADMINISTRATIVE AGENT OR ATTORNEY OF ADMINISTRATIVE AGENT OR ANY LENDER
         HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ADMINISTRATIVE AGENT OR
         ANY LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
         FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR
         BORROWER, ADMINISTRATIVE AGENT, AND EACH OF THE LENDERS TO ENTER INTO
         THE TRANSACTIONS CONTEMPLATED HEREBY.

         15.7 Survival. All representations, warranties, covenants and
agreements of Borrower, or a Loan Party, herein or in any other Loan Document,
or in any notice, certificate, or other paper delivered by or on behalf of
Borrower or a Loan Party pursuant hereto are significant and shall be deemed to
have been relied upon by Administrative Agent and each of the Lenders
notwithstanding any investigation made by Administrative Agent or any of the
Lenders or on its behalf and shall survive the delivery of the Loan Documents
and the making of the Loan pursuant thereto. No review or approval by
Administrative Agent or the Lenders or any of their representatives, of any
opinion letters, certificates by professionals or other item of any nature shall
relieve Borrower or anyone else of any of the obligations, warranties or
representations made by or on behalf of Borrower or a Loan Party, or any one or
more of them, under any one or more of the Loan Documents.

         15.8 Cumulative Rights. All of the rights of Administrative Agent and
the Lenders hereunder and under each of the other Loan Documents and any other
agreement now or hereafter executed in connection herewith or therewith, shall
be cumulative and may be exercised singly, together, or in such combination as
Administrative Agent may determine in its sole good faith judgment.

         15.9 Claims Against Administrative Agent or Lenders.

                  15.9.1 Borrower Must Notify. The Administrative Agent and each
         of the Lenders shall not be in default under this Agreement, or under
         any other Loan Document, unless a written notice specifically setting
         forth the claim of Borrower shall have been given to Administrative
         Agent and each of the Lenders within thirty (30) days after Borrower
         first had actual knowledge or actual notice of the occurrence of the
         event which

                                      -71-

<PAGE>

         Borrower alleges gave rise to such claim and Administrative Agent or
         any of the Lenders does not remedy or cure the default, if any there
         be, with reasonable promptness thereafter. Such actual knowledge or
         actual notice shall refer to what was actually known by, or expressed
         in a written notification furnished to, any of the persons or officials
         referred to in Exhibit D as Authorized Representatives.

                  15.9.2 Remedies. If it is determined by the final order of a
         court of competent jurisdiction, which is not subject to further
         appeal, that Administrative Agent or any of the Lenders has breached
         any of its obligations under the Loan Documents and has not remedied or
         cured the same with reasonable promptness following notice thereof,
         Administrative Agent's and each of the Lenders' responsibilities shall
         be limited to: (i) where the breach consists of the failure to grant
         consent or give approval in violation of the terms and requirements of
         a Loan Document, the obligation to grant such consent or give such
         approval and to pay Borrower's reasonable costs and expenses including,
         without limitation, reasonable attorneys' fees and disbursements in
         connection with such court proceedings; and (ii) in the case of any
         such failure to grant such consent or give such approval, or in the
         case of any other such default by Administrative Agent or any of the
         Lenders, where it is also so determined that Administrative Agent or
         any of the Lenders acted in gross negligence or bad faith, the payment
         of any actual, direct, compensatory damages sustained by Borrower as a
         result thereof plus Borrower's reasonable costs and expenses,
         including, without limitation, reasonable attorneys' fees and
         disbursements in connection with such court proceedings.

                  15.9.3 Limitations. In no event, however, shall Administrative
         Agent and each of the Lenders be liable to Borrower or to any Loan
         Party or anyone else for other damages such as, but not limited to,
         indirect, speculative or punitive damages whatever the nature of the
         breach by Administrative Agent or any of the Lenders of its obligations
         under this Loan Agreement or under any of the other Loan Documents. In
         no event shall Administrative Agent or any of the Lenders be liable to
         Borrower or to any Loan Party or anyone else unless a written notice
         specifically setting forth the claim of Borrower shall have been given
         to Administrative Agent and each of the Lenders within the time period
         specified above.

         15.10 Regarding Consents. Except to the extent expressly provided
herein, any and all consents to be made hereunder by the Administrative Agent,
Required Lenders, or Lenders shall be in the discretion of the Party to whom
consent rights are given hereunder.

         15.11 Obligations Absolute. Except to the extent prohibited by
applicable law which cannot be waived, the Obligations of Borrower and the
obligations of the Guarantor and the other Loan Parties under the Loan Documents
shall be joint and several, absolute, unconditional and irrevocable and shall be
paid strictly in accordance with the terms of the Loan Documents under all
circumstances whatsoever, including, without limitation, the existence of any
claim, set off, defense or other right which Borrower or any Loan Party may have
at any time against Administrative Agent or any of the Lenders whether in
connection with the Loan or any unrelated transaction.

         15.12 Table of Contents, Title and Headings. Any Table of Contents, the
titles and the headings of sections are not parts of this Loan Agreement or any
other Loan Document and shall not be deemed to affect the meaning or
construction of any of its or their provisions.

         15.13 Counterparts. This Loan Agreement and each other Loan Document
may be

                                      -72-

<PAGE>

executed in several counterparts, each of which when executed and delivered is
an original, but all of which together shall constitute one instrument. In
making proof of this agreement, it shall not be necessary to produce or account
for more than one such counterpart which is executed by the party against whom
enforcement of such loan agreement is sought.

         15.14 Satisfaction of Commitment Letter. The Loan being made pursuant
to the terms hereof and of the other Loan Documents is being made in
satisfaction of Administrative Agent's and each of the Lenders' obligations
under the Commitment Letter dated October 16, 2003, as amended. The terms,
provisions and conditions of this Agreement and the other Loan Documents
supersede the provisions of the Commitment Letter.

         15.15 Time Of the Essence. Time is of the essence of each provision of
this Agreement and each other Loan Document.

         15.16 No Oral Change. This Loan Agreement and each of the other Loan
Documents may only be amended, terminated, extended or otherwise modified by a
writing signed by the party against which enforcement is sought (except no such
writing shall be required for any party which, pursuant to a specific provision
of any Loan Document, is required to be bound by changes without such party's
assent). In no event shall any oral agreements, promises, actions, inactions,
knowledge, course of conduct, course of dealings or the like be effective to
amend, terminate, extend or otherwise modify this Loan Agreement or any of the
other Loan Documents.

         15.17 Monthly Statements. While Administrative Agent may issue invoices
or other statements on a monthly or periodic basis (a "Statement"), it is
expressly acknowledged and agreed that: (i) the failure of Administrative Agent
to issue any Statement on one or more occasions shall not affect Borrower's
obligations to make payments under the Loan Documents as and when due; (ii) the
inaccuracy of any Statement shall not be binding upon Lenders and so Borrower
shall always remain obligated to pay the full amount(s) required under the Loan
Documents as and when due notwithstanding any provision to the contrary
contained in any Statement; (iii) all Statements are issued for information
purposes only and shall never constitute any type of offer, acceptance,
modification, or waiver of the Loan Documents or any of Lenders' rights or
remedies thereunder; and (iv) in no event shall any Statement serve as the basis
for, or a component of, any course of dealing, course of conduct, or trade
practice which would modify, alter, or otherwise affect the express written
terms of the Loan Documents.

             [The balance of this page is intentionally left blank]

                                      -73-

<PAGE>

         IN WITNESS WHEREOF this Agreement has been duly executed and delivered
as a sealed instrument at Boston, Massachusetts, as of the date first written
above.

BORROWER:                  CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.

                           By:    Cedar Shopping Centers, Inc., general partner

                                  By:    _______________________________
                                         Name:
                                         Title:

ADMINISTRATIVE AGENT:      FLEET NATIONAL BANK

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

LENDERS:                   FLEET NATIONAL BANK

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

                           COMMERZBANK AG NEW YORK BRANCH

                           By:    ______________________________
                                  Name:
                                  Title: _________________

                           By:    ______________________________
                                  Name:
                                  Title: _________________

                           PB CAPITAL CORPORATION

                           By:    ______________________________
                                  Name:
                                  Title: ____________________

                           MANUFACTURERS AND TRADERS TRUST
                           COMPANY

                           By:    ______________________________
                                  Name:
                                  Title: _______________________

                                       S-1

<PAGE>

                           SOVEREIGN BANK

                                        By:    ______________________________
                                               Name:
                                               Title: ____________________

                           RAYMOND JAMES BANK, FSB

                                        By:    ______________________________
                                               Name:
                                               Title: _______________________

                           CITIZENS BANK

                                        By:    ______________________________
                                               Name:
                                               Title: _______________________

                                       S-2

<PAGE>

                                    EXHIBITS:
<TABLE>
<CAPTION>
                                                                                                            Section
                                                                                                          Reference
                                                                                                             Number
                                                                                                             ------
<S>                                                                                                       <C>
Exhibit A - Definitions.........................................................................................1.1

Exhibit B-1 - Requisition; Availability Certificate...........................................................2.1.2

Exhibit C - Note................................................................................................3.2

Exhibit D - Authorized Representatives............................................................................4

Exhibit E - Required Property, Hazard and Other Insurance.........................................5.1.11, 6.16, 7.5

Exhibit F - Ownership Interests and Taxpayer Identification Numbers.............................................6.4

Exhibit G  - Compliance Certificate...........................................................................7.2.5

Exhibit H  - Form of Assignment and Acceptance...............................................................13.3.1

Exhibit I - Lenders' Commitment...........................................................................Exhibit A

Exhibit J - Borrowing Base Properties.....................................................................Exhibit A

Exhibit K - Loan Agenda...................................................................................Exhibit A

Exhibit EC - Estoppel Certificate.........................................................................Exhibit A

Exhibit TP - Theater Parcel...................................................................................3.3.7

Exhibit CC - Closing Compliance Certificate...................................................................3.3.7
</TABLE>

                                       S-3

<PAGE>
                           EXHIBIT A TO LOAN AGREEMENT

                                   DEFINITIONS

Additional Collateral Request as defined in Section 3.5.

Administrative Agent. Fleet National Bank, acting as agent for the Lenders.

Adjusted Appraised Value. With respect to any Collateral Property that is the
subject of an Appraisal, the appraised value set forth in such Appraisal, as
such may be reviewed and adjusted by the Administrative Agent acting reasonably
and in good faith.

Adjusted Capitalized Value. With respect to any Borrowing Base Property, (i)
which is a Stabilized Asset, the most recent fiscal quarter Adjusted Net
Operating Income for such Borrowing Base Property, annualized, capitalized at a
nine and one-quarter percent (9.25%) capitalization rate and (ii) which is a
Non-Stabilized Asset, undepreciated Book Value (as reported on the financial
statements for the subject Borrowing Base Property Owner).

Adjusted LIBO Rate. The term "Adjusted LIBO Rate" means for each Interest Period
the rate per annum obtained by dividing (i) the LIBO Rate for such Interest
Period, by (ii) a percentage equal to one hundred percent (100%) minus the
maximum reserve percentage applicable during such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System for determining the maximum reserve requirements (including,
without limitation, any basic, supplemental, marginal and emergency reserve
requirements) for Administrative Agent (or of any subsequent holder of a Note
which is subject to such reserve requirements) in respect of liabilities or
assets consisting of or including Eurocurrency liabilities (as such term is
defined in Regulation D of the Board of Governors of the Federal Reserve System)
having a term equal to the Interest Period.

Adjusted Net Operating Income: For any period of determination, for any
Individual Property, the Pro Rata Share of (i) Net Operating Income less (ii)
management fees (calculated as the greater of either 3% of total revenue or
actual management expenses incurred), to the extent not already deducted from
Net Operating Income, less (iii) allowances for capital expenditures in the
amount of $0.20 per annum per rentable square foot of completed improvements.

Affiliate shall mean, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by or is under common control with
such Person or is a director or officer of such Person. For purposes of this
definition, control of a Person shall mean the power, direct or indirect, (i) to
vote 10% or more of the securities having ordinary voting power for the election
of directors of such Person or (ii) to direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

Aggregate Borrowing Base Value shall mean, as determined by the Administrative
Agent as of each Calculation Date, the aggregate of the Borrowing Base Values
for all Borrowing Base Properties.

Agreement as defined in the Preamble.

Applicable Margin shall mean for LIBO Rate Loans and for Variable Rate Loans,
respectively, the following:

                                      EA-1

<PAGE>
--------------------------------------------------------------------------------
Level                      Leverage           Applicable         Applicable
                            Ratio             Margin for         Margin for
                                              LIBO Rate           Variable
                                                Loans            Rate Loans
--------------------------------------------------------------------------------
1                          Leverage           225 basis           50 basis
                          Ratio<60%             points             points
--------------------------------------------------------------------------------
2                          Leverage           250 basis           75basis
                          Ratio=>60%            points             points
                           to <=65%
--------------------------------------------------------------------------------
3                          Leverage           275 basis          100 basis
                          Ratio >65%            points             points
--------------------------------------------------------------------------------

The Applicable Margin shall remain in effect until the Administrative Agent has
provided the Borrower with written notice (in the manner provided in the Loan
Agreement) that the Applicable Margin has been modified due to a change in the
Leverage Ratio as of any Calculation Date, with any such change then being
implemented retroactively to such Calculation Date. The initial Applicable
Margin hereunder shall be established at Level 1.

Appraisal shall mean an MAI appraisal ordered by the Administrative Agent in
form and substance acceptable to the Required Lenders and prepared by an
appraiser acceptable to the Administrative Agent.

Arranger as defined in the cover page.

Assignment and Acceptance as defined in Section 13.3.1.

Authorized Representatives as defined in Section 4 and listed on Exhibit D.

Availability shall mean, from time to time, an amount determined by the
Administrative Agent as of each Calculation Date equal to the lesser of the
following:

         (a) sixty-five percent (65%) of the Aggregate Borrowing Base Value of
the Borrowing Base Properties as of such Calculation Date; or

         (b) the Implied Loan Amount.

Banking Day. The term "Banking Day" means a day on which banks are not required
or authorized by law to close in the city in which Administrative Agent's
principal office is situated.

Book Value shall mean the value of such property or asset, as determined in
accordance with GAAP.

Borrower as defined in the Preamble.

Borrower GP shall mean CSC.

Borrower Subsidiaries shall mean, individually and collectively, all of the
Subsidiaries of the

                                      EA-2

<PAGE>

Borrower and/or CSC.

Borrower Reduction Date as defined in Section 2.2.2.(ii).

Borrower Termination Date as defined in Section 2.2.2.(i).

Borrowing Base Property and Borrowing Base Properties. The Individual Properties
initially listed in Exhibit J hereto, plus any Individual Property which
subsequently becomes a Borrowing Base Property in accordance with Section 3.5,
hereof, but not including (i) any Borrowing Base Property which is determined by
the Administrative Agent to no longer be a Borrowing Base Property in accordance
with Section 3.4, hereof, or (ii) any Borrowing Base Property which is released
as Collateral in accordance with Section 3.3, hereof.

Borrowing Base Property Requirements.

         (a) The Individual Property satisfies all Eligibility Criteria.

         (b) The Borrower (or applicable Loan Party) has executed all Security
Documents in connection with such Individual Property, including, without
limitation, the Security Documents set forth in Sections 3.1.1 through and
including Section 3.1.6, hereof.

         (c) The Individual Property is owned, ground leased or net leased by a
Wholly- Owned Subsidiary of the Borrower or CSC, except as otherwise approved by
the Agent and the Lenders.

         (d) Administrative Agent shall have received and completed a
satisfactory review of such due diligence as the Administrative Agent and the
Lenders may reasonably require with respect to any Individual Property,
including, without limitation:

                    (i) (1) A mortgagee's title insurance policy naming the
                  Administrative Agent, on behalf of the Lenders, as the first
                  mortgagee, which meets Administrative Agent's title insurance
                  requirements previously furnished to Borrower to the
                  reasonable satisfaction of Administrative Agent and
                  Administrative Agent's counsel; and (2) such other evidence of
                  the perfection of its security interests as Administrative
                  Agent and Administrative Agent's counsel may reasonably
                  require;

                    (ii) A current, on site instrument survey of the Individual
                  Property containing a certification thereon, or on a separate
                  surveyor's certificate, of a land surveyor reasonably
                  acceptable to Administrative Agent which meets Administrative
                  Agent's survey requirements previously furnished to Borrower
                  to the reasonable satisfaction of Administrative Agent and its
                  counsel;

                    (iii) If the Individual Property is ground leased by the
                  Borrowing Base Property Owner, a copy of the Ground Lease.
                  Further, in the event that the ground lessor of the Individual
                  Property is (i) an Affiliate of any Loan Party, the said
                  ground lessor shall join in the Mortgage to include within the
                  Collateral the fee interest in the said Individual Property or
                  (ii) not an Affiliate of any Loan Party, the Administrative
                  Agent shall receive an Estoppel Certificate in the form of
                  Exhibit EC annexed hereto from the ground lessor or in the
                  form required by the ground lease provided such form is
                  reasonably acceptable to the Administrative Agent.

                                      EA-3
<PAGE>

                    (iv) The Borrower has utilized reasonable efforts to obtain
                  executed estoppel certificates and subordination,
                  nondisturbance and attornment agreements from tenants under
                  Major Leases;

                    (v) Copies of all Major Leases and, to the extent required
                  by the Administrative Agent, copies of other Leases;

                    (vi) A copy of the property management agreement with
                  respect to the Individual Property, if any, and, if requested
                  by the Administrative Agent, a consent by the property manager
                  to the collateral assignment of the property management
                  agreement to the Administrative Agent, on behalf of the
                  Lenders;

                    (vii) A copy of any reciprocal easement agreements with
                  respect to the Individual Property and, only if there are
                  material financial obligations of a recurring and defined
                  nature payable by the owner of the Borrowing Base Property
                  thereunder, if requested by the Administrative Agent, an
                  Estoppel Certificate from all of the parties thereto in form
                  and substance reasonably acceptable to the Administrative
                  Agent;

                    (viii) Evidence of existence of all Licenses and Permits to
                  evidence compliance with Legal Requirements with respect to
                  the use and operation of the Individual Property;

                    (ix) Evidence of insurance complying with the requirements
                  of Exhibit E, hereto;

                    (x) A current Appraisal;

                    (xi) A current environmental Phase I Site Assessment
                  performed by a firm reasonably acceptable to the
                  Administrative Agent within six (6) months of submission to
                  the Administrative Agent, which indicates the property is free
                  from recognized hazardous materials or substances apparent
                  from the inspection, or affected by such environmental matters
                  as may be reasonably acceptable to the Administrative Agent in
                  its sole and absolute discretion;

                    (xii) A current structural report performed by a firm
                  reasonably acceptable to the Administrative Agent within six
                  (6) months of submission to the Administrative Agent relative
                  to any improvements on the Individual Property; and

                    (xiii) Such other real estate documents reasonably deemed
                  appropriate for commercially reasonable underwriting by the
                  Administrative Agent in respect of the Borrowing Base
                  Property.

Borrowing Base Property Owner and Borrowing Base Property Owners shall mean,
from time to time, the Wholly-Owned Subsidiary or Subsidiaries of the Borrower
or CSC which is or are the owner or owners of the fee simple interest in, or the
approved ground lessee of, a Borrowing Base Property or the Borrowing Base
Properties.

Borrowing Base Value shall mean, as of each Calculation Date, (i) for each
Borrowing Base Property which is a Stabilized Asset, (x) the Adjusted Appraised
Value of such Borrowing Base

                                      EA-4

<PAGE>

Property, as determined by an Appraisal completed within the prior twelve (12)
month period, or, if selected by the Administrative Agent, (y) the Adjusted
Capitalized Value of such Borrowing Base Property, and (ii) for each Borrowing
Base Property which is a Non-Stabilized Asset, (x) the Adjusted Appraised Value
of such Borrowing Base Property, as determined by the most recent Appraisal of
such Borrowing Base Property, or, if by selected by the Administrative Agent,
(y) the Adjusted Capitalized Value of such Borrowing Base Property.
Notwithstanding the above, for purposes of determining the Borrowing Base Value,
the Borrowing Base Value for any Borrowing Base Property as to which an Event of
Loss has occurred shall be equal (x) the Adjusted Appraised Value of such
Borrowing Base Property, as determined by an Appraisal completed within the
prior twelve (12) month period, or, if selected by the Administrative Agent, the
Adjusted Capitalized Value of such Borrowing Base Property for a period equal to
the lesser of (i) twelve (12) months from the occurrence of the Event of Loss or
(ii) the determination that the subject Borrowing Base Property is not, or
ceases to be, a Restoration Property.

Breakage Fees as defined in Section 2.3.15.

Business Day shall mean any day of the year on which offices of Administrative
Agent are not required or authorized by law to be closed for business in Boston,
Massachusetts. If any day on which a payment is due is not a Business Day, then
the payment shall be due on the next day following which is a Business Day, and
such extension of time shall be included in computing interest and fees in
connection with such payment. Further, if there is no corresponding day for a
payment in the given calendar month (i.e., there is no "February 30th"), the
payment shall be due on the last Business Day of the calendar month. Saturday
and Sunday shall never be considered a Business Day.

Calculation Date shall mean the last day of each calendar quarter commencing
with March 31, 2004.

Calculation Period shall mean for each Calculation Date, the just completed
calendar quarter (inclusive of the applicable Calculation Date).

Capital Stock shall mean (i) with respect to any Person that is a corporation,
any and all shares, interests, participations or other equivalents (however
designated and whether or not voting) of corporate stock, including without
limitation, each class or series of common stock and preferred stock of such
Person and (ii) with respect to any Person that is not a corporation, any and
all investment units, partnership, membership or other equity interests of such
Person.

Cash Flow Projections shall mean a detailed schedule of all cash Distributions
projected to be made to the Borrower from the Borrower Subsidiaries, as detailed
on the model delivered to the Administrative Agent prior to the Closing Date,
and subject to change as shall be detailed in the respective Officer's
Certificate to be provided to the Administrative Agent as set forth herein.

Change of Control shall mean the occurrence of any of the following:

         (a) The acquisition by any Person, or "group" (within the meaning of
         Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
         amended) of Persons acting in concert, of beneficial ownership (within
         the meaning of Rule 13d-3 of the Securities and Exchange Commission
         under the Securities Exchange Act of 1934, as amended), directly or
         indirectly, of 50% or more of the outstanding shares of voting stock of
         CSC, other than short term acquisitions necessary in connection with
         the ultimate sale or other offerings of equity interests otherwise
         permitted hereunder;

                                      EA-5

<PAGE>

         (b) During any period of twelve (12) consecutive calendar months,
individuals:

                  (1) who were directors of CSC on the first day of such period;
                  or

                  (2) whose election or nomination for election to the board of
                  directors of CSC was recommended or approved by at least a
                  majority of the directors then still in office who were
                  directors of CSC on the first day of such period, or whose
                  election or nomination for election was so approved,

                  shall cease to constitute a majority of the board of directors
                  of CSC; or

         (c) CSC shall cease to be the sole general partner of Borrower; or

         (d) CSC shall cease to own a minimum of 50% of the beneficial ownership
         interest in the Borrower, or

         (e) With respect to any Borrowing Base Property Owner, the transfer of
         any ownership interest therein such that such Borrowing Base Property
         Owner is not a Wholly-Owned Subsidiary of the Borrower or CSC.

Closing Compliance Certificate as defined in Section 5.1.2(ii).

Closing Date as defined in Section 5.1.

Code shall mean the Internal Revenue Code of 1986, as amended from time to time,
and the regulations promulgated and rulings issued thereunder. Section
references to the Code are to the Code, as in effect at the date of this
Agreement and any subsequent provisions of the Code, amendatory thereof,
supplemental thereto or substituted therefor.

Collateral as defined in Section 3.1.

Collateral Property and Collateral Properties shall mean any Borrowing Base
Property or Borrowing Base Properties and other Individual Properties which (i)
were a Borrowing Base Property, (ii) were no longer deemed such under Section
3.4.1, and (iii) for which the Release Conditions have not been satisfied, as
described in Section 3.4.3.

Collateral Release Request as defined in Section 3.3.

Combined EBITDA shall mean the sum of the Pro Rata share of EBITDA for each
Consolidated CSC Entity and each Unconsolidated CSC Entity.

Commitment shall mean, with respect to each Lender, the amount set forth on
Exhibit I hereto as the amount of such Lender's commitment to make advances to
the Borrower, as may be amended from time to time by the Administrative Agent as
provided in Article 13.

Commitment Percentage shall mean, with respect to each Lender, the percentage
set forth on Exhibit I hereto as such Lender's percentage of the aggregate
Commitments of all of the Lenders, as may be amended from time to time by the
Administrative Agent as provided in Article 13.

Consolidated or Consolidating means consolidated or consolidating as defined in
accordance with GAAP.

                                      EA-6

<PAGE>

Consolidated CSC Entity or Consolidated CSC Entities shall mean, singly and
collectively, the Borrower, CSC, and any Wholly-Owned Subsidiary of the Borrower
or CSC.

Cost to Repair as defined in Section 14.3.1.

CSC as defined in Section 1.4.

CSC Party and CSC Parties shall mean, singly and collectively, each Loan Party
and each Borrower Subsidiary.

Debt shall mean, with respect to any Person, without duplication, (i) all
indebtedness of such Person for borrowed money, (ii) all indebtedness of such
Person for the deferred purchase price of property or services (other than
property and services purchased, and expense accruals and deferred compensation
items arising, in the ordinary course of business), (iii) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments
(other than performance, surety and appeal bonds arising in the ordinary course
of business), (iv) all indebtedness of such Person created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession
or sale of such property), (v) all obligations of such Person under leases which
have been, or should be, in accordance with generally accepted accounting
principles, recorded as capital leases, to the extent required to be so
recorded, (vi) all reimbursement, payment or similar obligations of such Person,
contingent or otherwise, under acceptance, letter of credit or similar
facilities (other than letters of credit in support of trade obligations or in
connection with workers' compensation, unemployment insurance, old-age pensions
and other social security benefits in the ordinary course of business), (vii)
all Debt in the nature of that referred to in clauses (i) through (vi) above
which is guaranteed directly or indirectly by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (A) to pay
or purchase such Debt or to advance or supply funds for the payment or purchase
of such Debt, (B) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or sell services, primarily for the purpose of enabling the debtor
to make payment of such Debt or to assure the holder of such Debt against loss
in respect of such Debt, (C) to supply funds to or in any other manner invest in
the debtor (including any agreement to pay for property or services irrespective
of whether such property is received or such services are rendered) or (D)
otherwise to assure a creditor against loss in respect of such Debt, (viii) any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any indebtedness or other obligation of any
Person, either directly or indirectly, of the nature described in clauses (i)
through (vi), and (ix) all Debt referred to in clauses (i) through (vi) above
secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien, security interest or other
charge or encumbrance upon or in property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Debt. For the purposes of
the calculation of the Financial Covenants, Debt of any entity in which a Person
owns an ownership interest shall be calculated on a Pro Rata basis, unless such
Person has delivered a guaranty or other indemnity in connection with such Debt
creating a greater proportionate liability, in which event, such greater
liability shall apply.

Default as defined in Section 10.1.

Default Rate as defined in Section 2.3.13.

Delinquent Lender as defined in Section 13.2.8.

                                      EA-7

<PAGE>

Depository Account as defined in Section 7.14.1.

Development Assets shall mean Individual Properties as to which construction of
the associated or contemplated improvements has commenced (either new
construction or substantial renovation) but has not yet been completed such that
a certificate of occupancy (or the local equivalent) for a substantial portion
of the intended improvements has not yet been issued or, for any completed
project, until the earlier to occur of (a) such Individual Property becoming a
Stabilized Asset, or (b) one hundred eighty (180) days after completion.

Distribution shall mean, with respect to any Person, that such Person has paid a
dividend or returned any equity capital to its stockholders, members or partners
or made any other distribution, payment or delivery of property (other than
common stock or partnership or membership interests of such Person) or cash to
its stockholders, members or partners as such, or redeemed, retired, purchased
or otherwise acquired, directly or indirectly, for a consideration any shares of
any class of its capital stock or any membership or partnership interests (or
any options or warrants issued by such Person with respect to its capital stock
or membership or partnership interests), or shall have permitted any of its
Subsidiaries to purchase or otherwise acquire for a consideration any shares of
any class of the capital stock or any membership or partnership interests of
such Person (or any options or warrants issued by such Person with respect to
its capital stock or membership or partnership interests). Without limiting the
foregoing, "Distributions" with respect to any Person shall also include all
payments made by such Person with respect to any stock appreciation rights,
plans, equity incentive or achievement plans or any similar plans.

Dollars shall mean lawful money of the United States.

Drawdown Date as defined in Section 2.1.2(i).

EBITDA shall mean for any Person the sum of (i) net income (or loss), plus (ii)
actual interest paid or payable respecting all Debt to the extent included as an
expense in the calculation of net income (or loss), plus (iii) total Tax
Expenses to the extent included as an expense in the calculation of net income
(or loss), plus (iv) total depreciation and amortization expense, to the extent
included as an expense in the calculation of net income (or loss), plus (v)
losses from extraordinary items, nonrecurring items, asset sales, write-ups or
forgiveness of debt, to the extent included as an expense in the calculation of
net income, minus (vi) gains from extraordinary items, nonrecurring items, asset
sales, write-ups or forgiveness of debt, to the extent included as income in the
calculation of net income, minus (vii) allowances for capital expenditures in
the amount of $0.20 per annum per rentable square foot of improvements, adjusted
(viii) for the elimination of straight line rents, all of the foregoing as
determined in accordance with GAAP, as appropriate. Without limiting the
generality of the foregoing, in determining EBITDA, net income shall include as
income, Rent Loss Proceeds.

Effective LIBO Rate. The term "Effective LIBO Rate" means the per annum rate
equal to the aggregate of (x) the Adjusted LIBO Rate, plus (y) the Applicable
Margin for Effective LIBO Rate Loans.

Effective LIBO Rate Advance. The term "Effective LIBO Rate Advance" means any
principal outstanding under this Agreement which pursuant to this Agreement
bears interest at the Effective LIBO Rate.

Eligibility Criteria shall mean the following criteria which must be satisfied
in a manner

                                      EA-8

<PAGE>

acceptable to the Administrative Agent for each Borrowing Base Property:

         (a) the Borrowing Base Property is a retail center located in the
United States owned by a Borrowing Base Property Owner;

         (b) the Borrower provides reasonably acceptable historical operating
and leasing information;

         (c) the Borrower provides a certification as to the absence of any
material environmental issues;

         (d) the Borrower provides certification as to the absence of any
material structural issues; and

         (e) no liens or encumbrances shall exist on the Borrowing Base Property
upon its inclusion as a Borrowing Base Property, other than Permitted Liens.

Eligible Assignee shall mean any of (a) a commercial bank organized under the
laws of the United States, or any State thereof or the District of Columbia, and
having total assets in excess of $1,000,000,000; (b) a savings and loan
association or savings bank organized under the laws of the United States, or
any State thereof or the District of Columbia, and having a net worth of at
least $100,000,000, calculated in accordance with generally accepted accounting
principles; (c) a commercial bank organized under the laws of any other country
which is a member of the Organization for Economic Cooperation and Development
(the "OECD"), or a political subdivision of any such country, and having total
assets in excess of $1,000,000,000, provided that such bank is acting through a
branch or agency located in the country in which it is organized or another
country which is also a member of the OECD; (d) the central bank of any country
which is a member of the OECD; and (e) any other assignee that, in the
reasonable judgment of the Administrative Agent, is a reputable institutional
investor with substantial experience in lending and originating loans similar to
the Loan, or in purchasing, investing in or otherwise holdings such loans,
having a financial net worth of at least $100,000,000 and (f) any Lender
Affiliate or a Related Fund of a Lender. For the purposes hereof, "Lender
Affiliate" shall mean, (a) with respect to any Person who would otherwise be an
Eligible Assignee under clauses (a) - (e), above (a "Qualified Assignee"), (i)
an Affiliate of such Qualified Assignee or (ii) any entity (whether a
corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered (including
as placement agent therefor) or managed by a Qualified Assignee or an Affiliate
of such Qualified Assignee and (b) with respect to any Lender that is a fund
which invests in bank loans and similar extensions of credit, any other fund
that invests in bank loans and similar extensions of credit and is managed by
the same investment advisor as such Lender or by an Affiliate of such investment
advisor(i.e., a Related Fund of such Lender). Further, for the purposes hereof,
"Related Fund" shall mean, with respect to a Lender which is a fund that invests
in loans, any other such fund managed by the same investment advisor as such
Lender or by an Affiliate of such Lender or such advisor. Neither the Borrower
nor an affiliate of the Borrower shall be Eligible Assignee.

Environmental Indemnity as defined in Section 3.1.5.

Environmental Legal Requirements as defined in the Environmental Indemnity.

ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended
from

                                      EA-9

<PAGE>

time to time, and the regulations promulgated and rulings issued thereunder.
Section references to ERISA are to ERISA, as in effect at the date of this
Agreement and any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor.

ERISA Affiliate shall mean each person (as defined in Section 3(9) of ERISA)
which together with either Borrower or a Loan Party would be deemed to be a
"single employer" (i) within the meaning of Section 414(b), (c), (m) or (o) of
the Code or (ii) as a result of either Borrower or a Loan Party being or having
been a general partner of such person.

Established Loan Amount shall mean, as of the date hereof, One Hundred Million
Dollars ($100,000,000.00).

Event of Default as defined in Section 10.1.

Event of Loss shall mean, with respect to any Collateral Property, any of the
following: (a) any loss or destruction of, or damage to, such Collateral
Property; or (b) any actual condemnation, seizure or taking, by exercise of the
power of eminent domain or otherwise, of such Collateral Property, or
confiscation of such Collateral Property or the requisition of such Collateral
Property by a Governmental Agency or any Person having the power of eminent
domain, or any voluntary transfer of such Collateral Property or any portion
thereof in lieu of any such condemnation, seizure or taking.

Extended Maturity Date as defined in Section 2.2.1.

Extended Term as defined in Section 2.2.1.

FAD shall mean, for CSC, FFO (i) adjusted for the Pro Rata share of straight
line rents, (ii) less the Pro Rata share of all regularly scheduled principal
amortization payments (other than any final "balloon" payments due at maturity)
and (iii) less the Pro Rata share of allowances for tenant improvements and
leasing costs in the amount of $0.40 per annum per rentable square foot of
improvements.

Federal Funds Rate shall mean: For any day, a fluctuating interest rate per
annum equal to the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published for such day (or, if such day is not a Business Day,
for the next preceding Business Day) by the Federal Reserve Bank of New York, or
if such rate is not so published for any day that is a Business Day, the average
of the quotations for such day on such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing
selected by the Administrative Agent.

FFO shall mean, for CSC, net income (loss) (computed in accordance with GAAP)
excluding gains (or losses) from debt restructurings and sales of real property,
plus real estate related depreciation and amortization and after adjustments for
unconsolidated partnerships and joint ventures, as set forth in more detail
under the definitions and interpretations thereof relative to funds from
operations promulgated by the National Association of Real Estate Investment
Trusts or its successor.

Financial Covenants shall mean those covenants of the Borrower set forth in
Sections 7.19, 7.20, 7.21, 7.22, 7.23 and 7.24.

Fiscal Year shall mean each twelve month period commencing on January 1 and
ending on

                                      EA-10

<PAGE>

December 31.

Fixed Charges shall mean the aggregate of the Pro Rata Share of all (a) Interest
Expenses, (b) regularly scheduled principal amortization payments (other than
any final "balloon" payments due at maturity) on all Debt of the Consolidated
CSC Entities and the Unconsolidated CSC Entities, (c) preferred dividend
payments or required Distributions (other than Distributions by the Borrower to
holders of OP units and Distributions by CSC to common equity holders) paid or
payable by the Consolidated CSC Entities and the Unconsolidated CSC Entities,
(d) Ground Lease Payments unless already deducted from Net Operating Income or
Combined EBITDA, and (e) Tax Expenses for the Consolidated CSC Entities and the
Unconsolidated CSC Entities, all of the foregoing as determined in accordance
with GAAP.

Fixed Charge Ratio shall mean, for each Calculation Period, the ratio of (a)
Combined EBITDA to (b) Fixed Charges.

Foreign Lender as defined in Section 2.6.3(B).

Formation Documents shall mean, singly and collectively, the partnership
agreements, joint venture agreements, limited partnership agreements, limited
liability company or operating agreements and certificates of limited
partnership and certificates of formation, articles (or certificate) of
incorporation and by-laws and any similar agreement, document or instrument of
any Person, as amended subject to the terms and provisions hereof.

Funding Evidence shall mean, in connection with the Borrower raising the funds
necessary to make a Mandatory Principal Payment as required under Section
2.3.8(i), evidence in connection with (i) the sale of any asset, that the
Borrower has entered into a sales agreement, letter of intent, or listed the
asset for sale with a recognized broker or (ii) the financing or refinancing of
an asset, that the Borrower has obtained a commitment for such financing or
submitted a loan application to a recognized financial institution.

GAAP shall mean generally accepted accounting principles in the United States of
America as of the date applicable.

Governmental Authority shall mean any court, board, agency, commission, office
or authority of any nature whatsoever for any governmental unit (federal, state,
county, district, municipal, city or otherwise) whether now or hereafter in
existence.

Ground Leases shall mean, from time to time, any Ground Lease relative to an
Individual Property and with respect to Ground Leases covering Borrowing Base
Properties, for which the Administrative Agent has given its prior written
approval.

Ground Lease Payments shall mean the sum of the Pro Rata share of (i) payments
made by the Consolidated CSC Entities under Ground Leases, plus (ii) payments
made under Ground Leases by Unconsolidated CSC Entities. Ground Lease Payments
shall not include the payments made by Cedar-South Philadelphia I, LLC under
that certain ground lease dated as of October 31, 2003 by and between SPSP
Corporation, Passyunk Supermarket, Inc., and Twenty Fourth Street Passyunk
Partners, L.P., as landlord, and Cedar-South Philadelphia I, LLC, as tenant.

Guaranty as defined in Section 3.1.4.

Guarantor or Guarantors as defined in Section 1.4.

                                      EA-11

<PAGE>

Hazardous Materials shall mean and include asbestos, mold, flammable materials,
explosives, radioactive substances, polychlorinated biphenyls, radioactive
substances, other carcinogens, oil and other petroleum products, pollutants or
contaminants that could be a detriment to the environment, and any other
hazardous or toxic materials, wastes, or substances which are defined,
determined or identified as such in any past, present or future federal, state
or local laws, rules, codes or regulations, or any judicial or administrative
interpretation of such laws, rules, codes or regulations.

Implied Debt Service shall mean the greater of (a) the annual amount of
principal and interest payable on a hypothetical loan in an amount equal to the
Implied Loan Amount, based upon a twenty-five (25) year direct reduction monthly
amortization schedule and a per annum interest rate equal to the greater of (i)
the actual blended interest rate for the Loan, or (ii) the 10-year Treasury Rate
as of the Calculation Date plus the Applicable Margin for LIBO Rate Loans, or
(b) an annual debt service constant of eight percent (8.00%).

Implied Debt Service Coverage Ratio shall mean as of each Calculation Date, the
ratio of the Adjusted Net Operating Income for all Borrowing Base Properties for
the most recent fiscal quarter, annualized, to Implied Debt Service; such
calculation and results to be as verified by the Administrative Agent.

Implied Loan Amount shall mean a principal amount which would generate as of any
Calculation Date an Implied Debt Service Coverage Ratio of 1.60 to 1.00, which
Implied Loan Amount may be revised by the Administrative Agent after the Closing
Date or any Calculation Date, as applicable, to reflect additions, removals and
other adjustments to the Borrowing Base Properties since the Closing Date or the
most recent Calculation Date, as applicable.

Initial Maturity Date as defined in Section 2.2.1.

Initial Term as defined in Section 2.2.1.

Increased Cost Event as defined in Section 2.6.1.

Indemnified Party as defined in Section 7.17.

Individual Property and Individual Properties shall mean, from time to time, all
real estate property owned or ground leased by any Consolidated CSC Entity or
any Unconsolidated CSC Entity, together with all improvements, fixtures,
equipment, and personalty relating to such property.

Insurance/Taking Release Conditions shall mean as to any Event of Loss, the
following conditions: (a) the Cost to Repair is less than or equal to Five
Hundred Thousand Dollars ($500,000.00); (b) no Event of Default shall have
occurred and be continuing; (c) the Borrowing Base Property and the use thereof
after the Repair Work will be in compliance with, and permitted under, all
applicable Legal Requirements; and (d) such Event of Loss does not materially
impair access to the Borrowing Base Property.

Interest Expense shall mean the sum of the Pro Rata share of (i) the aggregate
actual interest (whether expensed or capitalized) paid or payable respecting all
Debt by the Consolidated CSC Entities, and (ii) the aggregate actual interest
(whether expensed or capitalized) paid or payable by the Unconsolidated CSC
Entities.

                                      EA-12

<PAGE>

Interest Expense Coverage shall mean the ratio for each Calculation Period of:
(A) Combined EBITDA to (B) Interest Expense.

Interest Period.

         (A) The term "Interest Period" means with respect to each Effective
LIBO Rate Advance: a period of one (1), two (2), or three (3) consecutive
months, subject to availability, as selected, or deemed selected, by Borrower at
least two (2) Business Days prior to the initial date of such Effective LIBO
Rate Advance, or if an advance is already outstanding, at least two (2) Business
Days prior to the end of the current Interest Period. Each such Interest Period
shall commence on the Business Day so selected, or deemed selected, by Borrower
and shall end on the numerically corresponding day in the first, second, or
third month thereafter, as applicable. Provided, however: (i) if there is no
such numerically corresponding day, such Interest Period shall end on the last
Business Day of the applicable month, (ii) if the last day of such an Interest
Period would otherwise occur on a day which is not a Business Day, such Interest
Period shall be extended to the next succeeding Business Day; but (iii) if such
extension would otherwise cause such last day to occur in a new calendar month,
then such last day shall occur on the next preceding Business Day.

         (B) The term "Interest Period" shall mean with respect to each Variable
Rate Advance consecutive periods of one (1) day each.

         (C) No Interest Period may be selected which would end beyond the then
Maturity Date of the Loan. If the last day of an Interest Period would otherwise
occur on a day which is not a Business Day, such last day shall be extended to
the next succeeding Business Day, except as provided above in clause (A)
relative to an Effective LIBO Rate Advance.

Investment shall mean the acquisition of any real property or tangible personal
property or of any stock or other security, any loan, advance, bank deposit,
money market fund, contribution to capital, extension of credit (except for
accounts receivable arising in the ordinary course of business and payable in
accordance with customary terms), or purchase or commitment or option to
purchase or otherwise acquire real estate or tangible personal property or stock
or other securities of any party or any part of the business or assets
comprising such business, or any part thereof.

Knowledge or knowledge shall mean with respect to the Borrower, CSC and the
Borrower Subsidiaries, (a) the actual knowledge of Leo S. Ullman, Brenda J.
Walker or Thomas J. O'Keeffe, or (b) the actual knowledge of such Persons'
successors to their positions (or positions similar thereto) as officers of CSC.
Notwithstanding the foregoing, such named parties and their successors are not
parties to this Agreement and shall have no liability for a breach of any
representation, warranty, covenant or agreement deemed to be made to their
actual knowledge.

Land Assets shall mean Individual Properties constituting raw or undeveloped
land as to which construction of contemplated improvements has not commenced or
which does not generate rental revenues under a Ground Lease.

Late Charge as defined in Section 2.3.14.

L/C Draw shall mean a payment made by the Administrative Agent pursuant to a
Letter of Credit which was presented to the Administrative Agent for a draw of
proceeds thereunder.

L/C Exposure shall mean, at any time, the sum of (a) the aggregate undrawn
amount of all

                                      EA-13
<PAGE>

outstanding Letters of Credit at such time, plus (b) the aggregate amount of all
L/C Draws that have not yet been reimbursed by or on behalf of the Borrower, or
repaid through a Loan Advance, at such time.

Lease shall mean any lease relative to all or any portion of an Individual
Property.

Legal Requirements shall mean all applicable federal, state, county and local
laws, by-laws, rules, regulations, codes and ordinances, and the requirements of
any governmental agency or authority having or claiming jurisdiction with
respect thereto, including, but not limited to, those applicable to zoning,
subdivision, building, health, fire, safety, sanitation, the protection of the
handicapped, and environmental matters and shall also include all orders and
directives of any court, governmental agency or authority having or claiming
jurisdiction with respect thereto.

Lenders as defined in the Preamble.

Lenders' Consultant as defined in Section 7.28.

Letter of Credit as defined in Section 2.7.1.

Leverage Ratio shall mean the quotient (expressed as a percentage) resulting
from dividing (i) the aggregate of all Debt of the Consolidated CSC Entities and
the Unconsolidated CSC Entities by (ii) the Total Asset Value.

LIBO Rate. The term "LIBO Rate" means, as applicable to any Effective LIBO Rate
Advance, the rate per annum as determined on the basis of the offered rates for
deposits in Dollars, for a period of time equal to the Interest Period for the
Effective LIBO Rate Advance which appears on the "Telerate Page 3750" as of
11:00 a.m. London time on the day that is two (2) London Banking Days preceding
the first day of such Effective LIBO Rate Advance (or if the Effective LIBO Rate
Advance is the conversion of an outstanding Effective LIBO Rate Advance, two
London Banking Days preceding the end of the Interest Period of such outstanding
advance); provided, however, if the rate described above does not appear on the
Telerate System on any applicable interest determination date, the LIBO Rate
shall be the rate (rounded upward, if necessary, to the nearest one hundred-
thousandth of a percentage point), determined on the basis of the offered rates
for deposits in Dollars for a period of time comparable to such Interest Period
which are offered by four major banks in the London interbank market at
approximately 11:00 a.m. London time, on the day that is two (2) London Banking
Days preceding the first day of such Effective LIBO Rate Advance as selected by
Administrative Agent (or if the Effective LIBO Rate Advance is the conversion of
an outstanding Effective LIBO Rate Advance, two London Banking Days preceding
the end of the Interest Period of such outstanding advance). The principal
London office of each of the four major London banks will be requested to
provide a quotation of its Dollar deposit offered rate. If at least two (2) such
quotations are provided, the rate for that date will be the arithmetic mean of
the quotations. If fewer than two (2) quotations are provided as requested, the
rate for that date will be determined on the basis of the rates quoted for loans
in Dollars to leading European banks for a period of time comparable to such
Interest Period offered by major banks in New York City at approximately 11:00
a.m. New York City time, on the day that is two (2) London Banking Days
preceding the first day of such Effective LIBO Rate Advance (or if the Effective
LIBO Rate Advance is the conversion of an outstanding Effective LIBO Rate
Advance, two London Banking Days preceding the end of the Interest Period of
such outstanding advance).

Lien shall mean any mortgage, deed of trust, lien, pledge, hypothecation,
assignment, security interest, or any other encumbrance, charge or transfer,
including, without limitation, any conditional

                                      EA-14

<PAGE>

sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and mechanic's,
materialmen's and other similar liens and encumbrances.

Licenses and Permits shall mean all licenses, permits, authorizations and
agreements issued by or agreed to by any governmental authority, or by a private
party pursuant to a Permitted Title Exception, and including, but not limited
to, building permits, occupancy permits and such special permits, variances and
other relief as may be required pursuant to Legal Requirements which may be
applicable to any Collateral Property.

Line Fee as defined in Section 2.4.2.

Line Percentage shall mean 0.25% per annum for any quarter during which the
average daily balance for such quarter of the aggregate of (x) the outstanding
principal balance of the Loan and (y) the L/C Exposure is less than the Total
Commitment.

Liquidation Proceeds. Amounts received by the Administrative Agent and/or the
Lenders in the exercise of the rights and remedies under the Loan Documents
(including, but not limited to, all rents, profits and other proceeds received
by the Administrative Agent and/or the Lenders from the liquidation of, or
exercising rights upon the occurrence of an Event of Default relative to, any
Collateral, but not including any amount bid at a foreclosure sale or on behalf
of the Administrative Agent or otherwise credited to the Borrower in, any
deed-in-lieu of foreclosure or similar transaction).

Loan as defined in Section 1.3.

Loan Advances shall mean any advance of any proceeds of the Loan hereunder, and
as defined in Section 2.1.1.

Loan Agenda shall mean that Document Agenda respecting the establishment of the
Loan annexed hereto as Exhibit K.

Loan Agreement as defined in the Preamble.

Loan Documents as defined in Section 3.2.

Loan Party and Loan Parties shall mean, singly and collectively, the Borrower,
CSC, and any Borrower Subsidiary which is a party to any Loan Document or the
beneficiary of any Letter of Credit, each Borrowing Base Property Owner, and any
Subsidiary and Affiliate of any of the foregoing which is party to any Loan
Document.

Loan Termination Date shall mean the Maturity Date.

London Banking Day. The term "London Banking Day" means any day on which
dealings in deposits in Dollars are transacted in the London interbank market.

Major Event of Loss shall mean, with respect to any Borrowing Base Property,
both (1) any of the following: (a) any loss or destruction of, or damage to,
such Borrowing Base Property such that either (x) the repairs and restoration
thereof cannot be completed, in the judgment of the applicable Lender's
Consultant and if there is no Lender's Consultant, an independent architect or
engineer retained by the Borrower, within six (6) months after the occurrence of
such loss, damage or

                                      EA-15

<PAGE>

destruction or (y) rendering more than fifty (50%) percent of the said Borrowing
Base Property unusable for the purposes conducted thereon immediately prior to
such loss, destruction or damage, as determined by the applicable Lender's
Consultant and if there is no Lender's Consultant, an independent architect or
engineer retained by the Borrower; or (b) any actual condemnation, seizure or
taking, by exercise of the power of eminent domain or otherwise, of such
Borrowing Base Property, or confiscation of such Borrowing Base Property or the
requisition of such Borrowing Base Property by a Governmental Agency or any
Person having the power of eminent domain, or any voluntary transfer of such
Borrowing Base Property or any portion thereof in lieu of any such condemnation,
seizure or taking, rendering more than fifty (50%) percent of the said leaseable
area of Borrowing Base Property unusable for the purposes conducted thereon
immediately prior to action, as determined by the applicable Lender's Consultant
and if there is no Lender's Consultant, an independent architect or engineer
retained by the Borrower, and (2) the Administrative Agent does not elect under
Section 14.3.3 to make the Net Proceeds with respect to such Event of Loss
available for Repair Work.

Major Lease shall mean (i) any Lease for space in any Borrowing Base Property
(x) in excess of 25,000 rentable square feet, or (y) in excess of 15,000
rentable square feet and in excess of ten (10%) percent of the rentable square
footage of such Borrowing Base Property, or (ii) any Lease with a tenant who is
a tenant in more than one Borrowing Base Property and who leases 25,000 or more
rentable square feet, in the aggregate, in all Borrowing Base Properties.

Mandatory Principal Payment as defined in Section 2.3.8(ii).

Material Adverse Effect shall mean a material adverse effect on (i) the
business, assets, operations or financial or other condition of any of the
Borrower, CSC, or, taken as a whole, the Loan Parties, (ii) the ability of any
of the Borrower, CSC, or, taken as a whole, the Loan Parties to perform any
material Obligations or to pay any Obligations which it is or they are obligated
to pay in accordance with the terms hereof or of any other Loan Document, (iii)
the rights of, or benefits available to, the Administrative Agent and/or any of
the Lenders under any Loan Document or (iv) any Lien given to Administrative
Agent and/or any of the Lenders on any material portion of the Collateral or the
priority of any such Lien.

Maturity shall mean the Initial Maturity Date, or, if extended pursuant to the
terms hereof, the Extended Maturity Date, or, in any instance, upon acceleration
of the Loan, if the Loan has been accelerated by Lenders upon an Event of
Default.

Maturity Date as defined in Section 2.2.1.

Maximum Loan Amount as defined in Section 2.1.1.

Net Operating Income: For any period of determination, (i) net operating income
generated by an Individual Property for such period (i.e., gross operating
income, inclusive of any rent loss insurance, less expenses (exclusive of debt
service, capital expenditures and vacancy allowances and before depreciation and
amortization)), determined in accordance with GAAP, as generated by, through or
under Leases, and (ii) all other income arising from direct operations of or
licenses or operating agreements for any part of the Individual Property
determined on a GAAP basis. For purposes hereof, all rental income shall be
adjusted for straight line rents. Borrower shall provide Administrative Agent
with all information and materials required by Administrative Agent necessary
for the determination of Net Operating Income. If any Leases are scheduled to
expire during such period of determination, no rents or other amounts payable
under such Leases with respect to any portion of such period occurring after
such scheduled expiration date shall be included

                                      EA-16

<PAGE>

in the determination of Net Operating Income for such period. If any Leases are
scheduled to commence (and rent and occupancy pursuant thereto are also
scheduled to commence) during such period of determination, the rents and other
amounts payable under such Leases with respect to any period occurring after the
scheduled commencement date shall be included in the determination of Net
Operating Income for such period.

Net Proceeds. (1) The net amount of all insurance proceeds received under any
insurance policies other than Rent Loss Proceeds as a result of the occurrence
of an Event of Loss described in clause (a) of the definition of Event of Loss
with respect to any Collateral Property, after deduction of the reasonable costs
and expenses (including, but not limited to reasonable counsel fees), if any, in
collecting the same, or (2) the net amount of all awards and payments received
with respect to the occurrence of an Event of Loss described in clause (b) of
the definition of Event of Loss, after deduction of the reasonable costs and
expenses (including, but not limited to reasonable counsel fees), if any, in
collecting the same, whichever the case may be.

Net Worth shall mean (a) the sum of (i) total stockholders' equity and (ii)
limited partners' interest in the Borrower as of the Calculation Date appearing
on the consolidated financial statements of the Borrower and CSC, plus (b)
depreciation and amortization provided after December 31, 2003 through the
Calculation Date on a cumulative basis.

Non-Retail Assets shall mean Individual Properties that generate more than
fifteen (15%) percent of base rental revenues from non-retail tenants.

Non-Stabilized Asset shall mean an Individual Property that is not a Stabilized
Asset.

Note. Collectively, the Notes payable to each Lender in the aggregate original
principal amount of the Established Loan Amount.

Notice of Default as defined in Section 13.1.6.

Notice of Letter of Credit as defined in Section 2.7.1.

Notice of Rate Selection as defined in Section 2.3.3.

Obligations shall mean without limitation, all and each of the following,
whether now existing or hereafter arising:

                    (a) Any and all direct and indirect liabilities, debts, and
                  obligations of the Borrower or any Loan Party to the
                  Administrative Agent or any Lender under or arising out of the
                  Loan Documents, each of every kind, nature, and description.

                    (b) Each obligation to repay any loan, advance,
                  indebtedness, note, obligation, overdraft, or amount now or
                  hereafter owing by the Borrower or any Loan Party to the
                  Administrative Agent or any Lender (including all future
                  advances whether or not made pursuant to a commitment by the
                  Administrative Agent or any Lender) under or arising out of
                  the Loan Documents, whether or not any of such are liquidated,
                  unliquidated, primary, secondary, secured, unsecured, direct,
                  indirect, absolute, contingent, or of any other type, nature,
                  or description, or by reason of any cause of action which the
                  Administrative Agent or any Lender may hold against the
                  Borrower or any Loan Party including, without limitation, any
                  obligation arising under any interest rate hedging, cap or
                  other protection arrangement with the Administrative

                                      EA-17

<PAGE>

                  Agent or any Lender.

                    (c) All notes and other obligations of the Borrower or any
                  Loan Party now or hereafter assigned to or held by the
                  Administrative Agent or any Lender under or arising out of the
                  Loan Documents, each of every kind, nature, and description.

                    (d) All interest, fees, and charges and other amounts which
                  may be charged by the Administrative Agent or any Lender to
                  the Borrower or any Loan Party and/or which may be due from
                  the Borrower or any Loan Party to the Administrative Agent or
                  any Lender from time to time under or arising out of the Loan
                  Documents.

                    (e) All costs and expenses incurred or paid by the
                  Administrative Agent or any Lender in respect of any agreement
                  between the Borrower or any Loan Party and the Administrative
                  Agent or any Lender or instrument furnished by the Borrower or
                  any Loan Party to the Administrative Agent or any Lender
                  (including, without limitation, costs of collection,
                  attorneys' reasonable fees, and all court and litigation costs
                  and expenses) in connection with the Loan.

                    (f) Any and all covenants of the Borrower or any Loan Party
                  to or with the Administrative Agent or any Lender and any and
                  all obligations of the Borrower or any Loan Party to act or to
                  refrain from acting in accordance with any agreement between
                  the Borrower or any Loan Party and the Administrative Agent or
                  any Lender or instrument furnished by the Borrower or any Loan
                  Party to the Administrative Agent or any Lender in connection
                  with the Loan.

Occupancy Ratio shall mean with respect to any Borrowing Base Property, the
ratio as determined by the Administrative Agent of the rentable square footage
thereof as to which tenants are in physical occupancy and paying rent, to the
total rentable square footage thereof. For purposes of determining the Occupancy
Ratio, the Occupancy Ratio for any Borrowing Base Property as to which an Event
of Loss has occurred shall be equal to the greater of (i) the actual Occupancy
Ratio with respect thereto or (ii) the Occupancy Ratio immediately prior to the
said Event of Loss for a period equal to the lesser of (x) six (6) months from
the occurrence of the Event of Loss or (y) the determination that the subject
Borrowing Base Property is not, or ceases to be, a Restoration Property.

Officer's Certificate shall mean a certificate delivered to the Administrative
Agent by the Borrower, a Borrower Subsidiary, or a Guarantor, as the case may be
respectively, which is signed by an authorized officer thereof (or an authorized
officer of the direct or indirect managing general partner or managing member,
as applicable, of the Borrower, Borrower Subsidiary, or Guarantor, if and as
applicable).

PBGC shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

Permitted Debt as defined in Section 8.4.

Permitted Distributions shall mean (a) so long as no Event of Default exists and
is continuing, or would be created thereby, any Distributions by the Borrower
and CSC, (i) in any amount, provided that such Distributions shall not exceed
(x) ninety-five (95%) percent of FFO for the trailing twelve (12) month period,
and (y) one hundred (100%) percent of FAD for the trailing twelve (12) month
period (with the initial test to be for the quarter ending December 31, 2004),
(ii) concerning the repurchase or redemption of stock of CSC or partnership
interests in the Borrower, or (iii)

                                      EA-18

<PAGE>

concerning the issuance of operating partnership units or stock in return for
equity interests in connection with any Permitted Investment (provided, any
Distributions by the Borrower or CSC shall be permitted as are necessary for CSC
to maintain REIT status, if such Distributions are greater than the amounts set
forth in subclause (a)(i), above) or (b) at any time after and during the
continuance of any Event of Default, such Distributions as are necessary for CSC
to maintain REIT status (measured on a trailing twelve (12) month period basis),
all of the foregoing tested by the Administrative Agent on the Calculation Date
with results based upon the results for the most recent Calculation Period, such
calculation and results to be as verified by the Administrative Agent.

Permitted Liens as defined in Section 8.2.

Permitted Investments shall mean the following:

                  (a) The Pro Rata share of Investments in Development Assets
                  (valued at undepreciated Book Value) which, in the aggregate,
                  do not exceed twenty five percent (25%) of Total Asset Value;

                  (b) The Pro Rata share of Investments in Land Assets which, in
                  the aggregate, valued at Book Value do not exceed five percent
                  (5%) of Total Asset Value;

                  (c) Investments in Unconsolidated CSC Entities including,
                  without limitation, the purchase of all or any portion of any
                  interests held by persons that are not Wholly- Owned
                  Subsidiaries of the Borrower;

                  (d) The Pro Rata share of Investments in Non-Retail Assets
                  which, in the aggregate, do not exceed five percent (5%) of
                  Total Asset Value;

                  (e) Investments in interest rate swaps, caps and other similar
                  rate protection agreements; and

                  (f) Investments in Individual Properties or in entities which
                  own such Individual Properties, provided that such investment
                  does not cause a breach of a Financial Covenant.

Provided, however, that the aggregate of the Pro Rata Share of Investments
described in clauses (a), (b) and (d) above shall not exceed thirty percent
(30%) of Total Asset Value.

Person shall mean any individual, corporation, partnership, joint venture,
estate, trust, unincorporated association or limited liability company, any
federal, state, county or municipal government or any bureau, department or
agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing.

Plan shall mean any multiemployer or single-employer plan as defined in Section
4001 of ERISA, which is maintained or contributed to by (or to which there is an
obligation to contribute of) any Loan Party or an ERISA Affiliate, and each such
plan for the five year period immediately following the latest date on which
such Loan Party or an ERISA Affiliate maintained, contributed to or had an
obligation to contribute to such plan.

Preliminary Approval shall mean the following:

         (a) Delivery by the Borrower to the Administrative Agent and the
Lenders of the

                                      EA-19

<PAGE>

following with respect to any Individual Property proposed to be a Borrowing
Base Property, each such item to the reasonable satisfaction of the
Administrative Agent and the Lenders:

                  (i) physical description;

                  (ii) current rent roll and operating statements;

                  (iii) to the extent then available in Borrower's files, the
following: a survey, environmental reports, copies of existing title insurance
policies or a title commitment, and copies of all title exceptions, engineering
reports and similar information; and

                  (iv) the Borrower's certification that to its knowledge the
proposed Borrowing Base Property presently satisfies (or is anticipated to
satisfy upon the grant of such Collateral) the Eligibility Criteria set forth in
subsections (a), (c), (d), and (e), of the definition of Eligibility Criteria.

         (b) Administrative Agent and the Lenders shall, within ten (10)
Business Days after delivery of all items described in subsection (a), above,
grant or deny the preliminary approval for the proposed replacement Borrowing
Base Property.

Prime Rate. The term "Prime Rate" means the greater of (i) a variable per annum
rate of interest so designated from time to time by Fleet National Bank (or any
successor thereto), as its prime rate, or (ii) the Federal Funds Rate plus 0.50%
per annum. The Prime Rate is a reference rate and does not necessarily represent
the lowest or best rate being charged to any customer.

Pro Rata shall mean a calculation based on the percentage of the Capital Stock
of or other equity interest in any Person owned, directly or indirectly, by the
Borrower and/or CSC. For the purposes of this definition, the Pro Rata Share of
a Consolidated CSC Entity shall be deemed to be 100%.

Register as defined in Section 13.3.3.

REIT means a "real estate investment trust" as such term is defined in Section
856 of the Code.

Release Conditions as defined in Section 3.3.

Release Price shall mean, with respect to any Borrowing Base Property, the
amount, if any, necessary to reduce the aggregate outstanding principal amount
of the Loans plus the L/C Exposure to the Maximum Loan Amount (computed without
regard to the Borrowing Base Property for which the Borrower is seeking
release).

Rent Loss Proceeds. The proceeds received under any rent loss or business
interruption insurance policies.

Repair Work as defined in Section 14.1.

Reportable Event shall mean an event described in Section 4043(b) of ERISA with
respect to a Plan other than those events as to which the 30-day notice period
is waived under subsection .13, .14, .16, .18, .19 or .20 of PBGC Regulation
Section 2615, or as otherwise now or hereafter defined in ERISA.

Required Lenders. As of any date, the Lenders holding at least Sixty-Six and
2/3rds (66 2/3%)

                                      EA-20

<PAGE>

percent of the outstanding principal amount due under the Note on such date; and
if no such principal is outstanding, the Lenders whose aggregate Commitments
constitute at least Sixty-Six and 2/3rds (66 2/3%) percent of the Total
Commitment.

Restoration Property. Any Collateral Property as to which an Event of Loss has
occurred and as to which the Net Proceeds are being made available in accordance
with the terms and provisions of Article 14 for Repair Work relative to the
subject Collateral Property and such Repair Work can be completed in six (6)
months, as determined by the Administrative Agent in its reasonable discretion.

Security Documents as defined in Section 3.2.

Stabilized Asset shall mean an Individual Property which has an Occupancy Ratio
of equal to or greater than eighty percent (80%). If due to the occurrence of an
Event of Loss as to any Borrowing Base Property which was a Stabilized Asset
prior to such Event of Loss, the Occupancy Ratio with respect thereto is less
than eighty percent (80%), such Borrowing Base Property shall continue to be
deemed to be a Stabilized Asset (notwithstanding that the Occupancy Ratio with
respect thereto is less than eighty percent (80%) as a result of such Event of
Loss) for a period equal to the lesser of (i) six (6) months from the occurrence
of the Event of Loss or (ii) the determination that the subject Borrowing Base
Property is not, or ceases to be, a Restoration Property.

State shall mean the State or Commonwealth in which the subject of such
reference or any part thereof is located.

Subsidiary shall mean, with respect to any Person, any corporation, association,
limited liability company, partnership or other business entity of which
securities or other ownership interests representing more than 50% of either (x)
the beneficial ownership interest or (y) ordinary voting power are, at the time
as of which any determination is being made, owned or controlled, directly or
indirectly, by such Person.

Tax Expenses shall mean tax expense (if any) attributable to income and
franchise taxes based on or measured by income, whether paid or accrued.

Total Asset Value shall mean the aggregate of:

         (a) for all Individual Properties (which are not Individual Properties
         acquired within the prior 90 days from the Calculation Date,
         Development Assets, or Land Assets), the Pro Rata share of the
         Calculations Period's aggregate Adjusted Net Operating Income for all
         such Individual Properties, annualized, capitalized at a rate of 9.25%,
         plus

         (b) for Land Assets, and for all Individual Properties which were
         acquired within the prior 90 days from the Calculation Date, the Pro
         Rata share of the undepreciated Book Value as of the Calculation Date;
         plus

         (c) for Development Assets, at the Borrower's option, either the Pro
         Rata share of the undepreciated Book Value as of the Calculation Date
         or the Pro Rata share of the Calculations Period's aggregate Adjusted
         Net Operating Income for such Development Asset, annualized,
         capitalized at a rate of 9.25%; plus

         (d) for all unencumbered cash and cash equivalent investments,
         restricted cash held by a qualified intermediary, and escrows owned by
         the Consolidated CSC Entities and the Unconsolidated CSC Entities, the
         Pro Rata share of the Book Value as of the Calculation

                                      EA-21

<PAGE>
         Date of such assets; plus

         (e) deposits corresponding to outstanding Letters of Credit.

         The Pro Rata Share of Development Assets completed within the prior 90
days from a Calculation Date will be valued as set forth in (c) above for a
maximum of one hundred eighty (180) days from completion (and continuing until
end of such Calculation Period ) and based on Adjusted Net Operating Income
under subsection (a) above thereafter.

Total Commitment. The sum of the Commitments of the Lenders, as in effect from
time to time.

Treasury Rate The term "Treasury Rate" means, as of the date of any calculation
or determination, the latest published rate for United States Treasury Notes or
Bills (but the rate on Bills issued on a discounted basis shall be converted to
a bond equivalent) as published weekly in the Federal Reserve Statistical
Release H.15(519) of Selected Interest Rates in an amount which approximates (as
determined by Administrative Agent) the amount (i) approximately comparable to
the portion of the Loan to which the Treasury Rate applies for the Interest
Period, or (ii) in the case of a prepayment, the amount prepaid and with a
maturity closest to the original maturity of the installment which is prepaid in
whole or in part.

UCC or the Uniform Commercial Code means the Uniform Commercial Code in effect
in the Commonwealth of Massachusetts, provided, that as same relates to a
Collateral Property, the UCC shall mean the Uniform Commercial Code as adopted
in such jurisdiction.

Unconsolidated CSC Entity or Unconsolidated CSC Entities shall mean each Person
as to which the Borrower and/or CSC own, directly or indirectly, any Capital
Stock, but which is not a Wholly- Owned Subsidiary.

Unfunded Current Liability of any Plan means the amount, if any, by which the
actuarial present value of the accumulated plan benefits under the Plan as of
the close of its most recent plan year exceeds the fair market value of the
assets allocable thereto, each determined in accordance with Statement of
Financial Accounting Standards No. 35, based upon the actuarial assumptions used
by the Plan's actuary in the most recent annual valuation of the Plan.

United States and U.S. shall each mean the United States of America.

Variable Rate means a per annum rate equal at all times to the Prime Rate plus
the Applicable Margin for Prime Rate Loans, with changes therein to be effective
simultaneously without notice or demand of any kind with any change in the Prime
Rate.

Variable Rate Advance means any principal amount outstanding under this
Agreement which pursuant to this Agreement bears interest at the Variable Rate.

Variable Rate Indebtedness means any Debt that bears interest at a variable rate
without the benefit of an interest rate hedge or other interest rate protection
agreement.

Wholly-Owned Subsidiary shall mean, with respect to any Person, any other Person
as to which one- hundred (100%) percent of the Capital Stock thereof is owned,
directly or indirectly, by such Person, and, for purposes of this definition,
Cedar-Riverview, LP and Delaware 1851 Associates, L.P., shall be deemed to be
Wholly-Owned Subsidiaries of the Borrower.

                                      EA-22

<PAGE>

                                      EA-23

<PAGE>

                          EXHIBIT B-1 TO LOAN AGREEMENT

                    REQUISITION AND AVAILABILITY CERTIFICATE

TO:      Fleet National Bank ("Administrative Agent")

RE:      Loan Agreement dated as of January 30, 2004 (the "Loan Agreement")
         between Administrative Agent, the lenders described therein and Cedar
         Shopping Centers Partnership, L.P. ("Borrower")

LOAN REQUEST NO.:________________

AMOUNT OF LOAN ADVANCE REQUESTED: $__________________

DATE:________________, 200__

         This Borrower's Certificate and Request for Loan Advance is submitted
by Borrower to Administrative Agent pursuant to the provisions of the Loan
Agreement in order to induce Lenders to make the Loan Advance identified above.
Capitalized terms used herein which are not otherwise specifically defined shall
have the same meaning herein as in the Loan Agreement.

         Borrower hereby requests Lenders to make a Loan Advance under the Notes
in the following amount: $_________________.

         The Loan Advance is requested for the following
purposes:_____________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.

         The Loan Advance requested of $______________, when added to prior Loan
Advances under the Notes of $________________, plus the L/C Exposure of
$__________________, will result in aggregate Loans plus L/C Exposure of
$_______________.

         The types of Loans requested are as follows:

                  Variable Rate:                     $__________________________

                  Effective LIBO Rate                $__________________________
                                                     Interest Period____________

                                                     $__________________________
                                                     Interest Period____________

         The Maximum Loan Amount shall not be exceeded upon the making of the
Loan Advance requested hereunder. Calculations of the Maximum Loan Amount,
current Loan balance, and amount of the Loan available to be advanced and/or
L/C's available to be issued are set forth on the Availability Certificate
annexed hereto.

         Borrower hereby certifies, warrants and represents to Administrative
Agent and the Lenders that (except for each condition precedent to Lender's
obligation to make the requested Loan Advance) this request: (i) constitutes an
affirmation by Borrower that, except as otherwise disclosed

                                      EB-1

<PAGE>

in writing to the Administrative Agent, each of the warranties and
representations made in the Loan Agreement, including, without limitation, the
Borrower's continued compliance with the Financial Covenants, as satisfied by
the Closing Compliance Certificate, or once delivered, the most recent
Compliance Certificate delivered by the Borrower to the Agent, remains true and
correct in all material respects as of the date of this request and, unless
Administrative Agent is notified to the contrary prior to the disbursement of
the Loan Advance, will be so on the date of such Loan Advance; and (ii)
constitutes the representation and warranty of Borrower that the information set
forth in this request is true, accurate and complete in all material respects.

         The Borrower hereby further certifies, warrants and represents to
Administrative Agent and the Lenders that: (i) to the best of the Borrower's
knowledge, the financial information provided by the Borrower to the Agent
remains true and accurate in all material respects; (ii) the Borrower is in
compliance with the financial covenants contained in the Loan Agreement to the
extent set forth below; (iii) to the best of the Borrower's knowledge, an Event
of Default which is continuing has not occurred under the Loan Agreement or any
of the other Loan Documents.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
               Covenant                              Requirement                             Actual
--------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                             <C>
Interest Expense Coverage               Not less than 2.00:1
--------------------------------------------------------------------------------------------------------------
Leverage Ratio                          Less than 70%
--------------------------------------------------------------------------------------------------------------
Fixed Charge Ratio                      Not less than 1.50:1.
--------------------------------------------------------------------------------------------------------------
Borrower's Net Worth                    Not less than 85% of the
                                        Borrower's Net Worth as of December 31,
                                        2003, plus 85% of cumulative net cash
                                        proceeds, as set forth in the Loan
                                        Agreement
--------------------------------------------------------------------------------------------------------------
Occupancy Ratio for                     Not less than 85% for the
Borrowing Base Properties               aggregate of all Borrowing
                                        Base Properties, and not less
                                        than 80% for each individual
                                        Borrowing Base Property
--------------------------------------------------------------------------------------------------------------
Aggregate Pro Rata amount               Less than 30% of the
of the Variable Rate                    aggregate Pro Rata amount of
Indebtedness of the                     the total Debt of the
Consolidated CSC Entities               Consolidated CSC Entities
and the Unconsolidated CSC              and the Unconsolidated CSC
Entities                                Entities
--------------------------------------------------------------------------------------------------------------
</TABLE>

         Calculations of the Financial Covenants are set forth in the Closing
Compliance Certificate, or once delivered, the most recent Compliance
Certificate delivered by the Borrower to the Agent.

         This request is submitted to Administrative Agent for the purpose of
inducing Lenders to make a Loan Advance and Borrower intends that Administrative
Agent and the Lenders shall rely upon the same being true, accurate and complete
in all material respects.

         If all conditions precedent to Lenders' obligation to make a Loan
Advance are satisfied,

                                      EB-2

<PAGE>

please disburse the Loan Advance on ______________, 200__.

         WITNESS the execution hereof as an instrument under seal as of the
_______ day of _____________, 200__.

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

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

                                            By:      _________________________
                                            Name:    _________________________
                                            Title:   _________________________

                                      EB-3

<PAGE>
                            AVAILABILITY CERTIFICATE
<TABLE>
<CAPTION>
<S>     <C>                                                           <C>
1.       Maximum Loan Amount

         a.       Established Loan Amount                              $___,000,000.00
         b.       Total Commitment                                     $___,000,000.00
         c.       Availability (calculated below)                      $_________
                                lesser of (a), (b) and (c)                              $__________

2.       Loan Balance

         a.       Outstanding Balance of Loan                          $_________
                       plus
         b.       L/C Exposure                                         $_________
                       (a) plus (b)                                                     $__________

3.       Amount of Loan available to be advanced and/or L/C's
         available to be issued
                       1 minus 2                                                        $__________
</TABLE>

                                      EB-4

<PAGE>

                            Availability Calculation

            a.    Aggregate Borrowing Base Value* $__________
                       (calculated below)
                       Multiplied by 65%                $__________

            b.    Implied Loan Amount                   $__________
                       (calculated below)
                          lesser of (a) or (b)                      $___________

                                      EB-5

<PAGE>

                        *Borrowing Base Value Calculation
                   (prepare for each Borrowing Base Property)

(a)  If Stabilized Asset

         (i)      Adjusted Appraised Value                  $____________
                  (complete only if Appraisal completed
                  within prior 12 months)

         (ii)     Adjusted Capitalized Value**              $____________
                     (calculated below)

**Adjusted Capitalized Value Calculation (For Stabilized Asset)

         Adjusted Net Operating Income for most recent
         fiscal quarter, annualized                         $____________
                  capitalized at 9.25%                      $____________

(b)  If Non-Stabilized Asset

         (i)      Adjusted Appraised Value                  $____________

         (ii)     Adjusted Capitalized Value                $____________
                     (Undepreciated Book Value)

                                      EB-6

<PAGE>

            Calculation of Borrowing Base Value if Event of Loss Has Occurred

   (i)      Adjusted Capitalized Value                      $___________
            (calculated in the
            manner set forth
            above for Stabilized Asset, subject
            to the limits of Borrowing Base Value,
            or Non Stabilized Asset, as applicable)

              Multiplied by 65%                             $___________

                                      EB-7

<PAGE>

                         Implied Loan Amount Calculation

Principal amount which generates Implied Debt Service Coverage Ratio of 1.60 to
1.00, calculated in accordance with the worksheet which is to be annexed hereto.

                                      EB-8

<PAGE>

                           EXHIBIT C TO LOAN AGREEMENT

                                      NOTE

                                 PROMISSORY NOTE

$__0,000,000.00                                                 January __, 2004

19. Promise To Pay.

         FOR VALUE RECEIVED, 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") promises to pay to the
order of FLEET NATIONAL BANK, a national banking association having an address
at 100 Federal Street, 8th Floor, Boston, Massachusetts 02110 (hereinafter, a
"Lender"), the principal sum of ______ MILLION DOLLARS ($____,000,000.00), or so
much thereof as may be advanced by or on behalf of Lender, with interest
thereon, or on the amount thereof from time to time outstanding, to be computed,
as hereinafter provided, on each advance from the date of its disbursement until
such principal sum shall be fully paid. Interest and principal shall be payable
in installments as set forth in the Loan Agreement (as defined below). The total
principal sum, or the amount thereof outstanding, together with any accrued but
unpaid interest, shall be due and payable in full on January __, 2007
(hereinafter, the "Maturity Date"), which term is further defined in, and is
subject to extension and/or acceleration in accordance with, the Loan Agreement
pursuant to which this Note has been issued.

20. Loan Agreement.

         This Note is issued pursuant to the terms, provisions and conditions of
an agreement captioned "Loan Agreement" (hereinafter, as the same may be
modified, amended or restated from time to time, the "Loan Agreement") dated as
of even date among Borrower, Lender, and the other financial institutions named
therein (the Lender and such other institutions, the "Lenders") and Fleet
National Bank as Agent (hereinafter, the "Agent") and evidences the Loan and
Loan Advances made by or on behalf of the Lender pursuant thereto. Capitalized
terms used herein which are not otherwise specifically defined shall have the
same meaning herein as in the Loan Agreement. This Note is one of several Notes
executed and delivered by the Borrower to the Lenders in accordance with the
terms and provisions of the Loan Agreement.

21. Acceleration; Event of Default.

         At the option of the Agent, subject to the terms of the Loan Agreement,
this Note and the indebtedness evidenced hereby shall become immediately due and
payable without further notice or demand, and notwithstanding any prior waiver
of any breach or default, or other indulgence, upon the occurrence of an Event
of Default. Upon the occurrence and during the continuance of an Event of
Default, Agent shall have, in addition to any rights and remedies contained
herein, any and all rights and remedies set forth in the Loan Agreement or any
other Loan Document.

22. Certain Waivers, Consents and Agreements.

         Each and every party liable hereon, or for the indebtedness evidenced
hereby, whether as maker, endorser, guarantor, surety or otherwise hereby: (a)
waives presentment, demand, protest, suretyship defenses and defenses in the
nature thereof; (b) waives any defenses based upon, and

                                      EC-1

<PAGE>

specifically assents to, any and all extensions and postponements of the time
for payment, changes in terms and conditions and all other indulgences and
forbearances which may be granted by the Agent or the holder to any party now or
hereafter liable hereunder or for the indebtedness evidenced hereby; (c) agrees
to any substitution, exchange, release, surrender or other delivery of any
security or collateral now or hereafter held hereunder or in connection with the
Loan Agreement, or any of the other Loan Documents, and to the addition or
release of any other party or person primarily or secondarily liable; (d) agrees
that if any security or collateral given to secure this Note or the indebtedness
evidenced hereby or to secure any of the obligations set forth or referred to in
the Loan Agreement, or any of the other Loan Documents, shall be found to be
unenforceable in full or to any extent, or if Agent or any other party shall
fail to duly perfect or protect such collateral, the same shall not relieve or
release any party liable hereon or thereon nor vitiate any other security or
collateral given for any obligations evidenced hereby or thereby; (e) agrees to
pay all costs and expenses actually incurred by Agent and Lenders or any other
holder of this Note in connection with the indebtedness evidenced hereby
pursuant to the Loan Agreement, including, without limitation, all reasonable
attorneys' fees and costs, for the implementation of the Loan, the collection of
the indebtedness evidenced hereby and the enforcement of rights and remedies
hereunder or under the other Loan Documents, whether or not suit is instituted;
and (f) consents to all of the terms and conditions contained in this Note, the
Loan Agreement, the Mortgage, the Assignment of Leases and Rents, and all other
instruments now or hereafter executed evidencing or governing all or any portion
of the security or collateral for this Note and for such Loan Agreement, or any
one or more of the other Loan Documents.

23. Delay Not A Bar.

         No delay or omission on the part of the Agent or the holder in
exercising any right hereunder or any right under any instrument or agreement
now or hereafter executed in connection herewith, or any agreement or instrument
which is given or may be given to secure the indebtedness evidenced hereby or by
the Loan Agreement, or any other agreement now or hereafter executed in
connection herewith or therewith shall operate as a waiver of any such right or
of any other right of such holder, nor shall any delay, omission or waiver on
any one occasion be deemed to be a bar to or waiver of the same or of any other
right on any future occasion.

24. Partial Invalidity.

         The invalidity or unenforceability of any provision hereof, of the Loan
Agreement, of the other Loan Documents, or of any other instrument, agreement or
document now or hereafter executed in connection with the Loan made pursuant
hereto and thereto shall not impair or vitiate any other provision of any of
such instruments, agreements and documents, all of which provisions shall be
enforceable to the fullest extent now or hereafter permitted by law.

25. Compliance With Usury Laws.

         All agreements among Borrower, Guarantor, Agent and Lenders are hereby
expressly limited so that in no contingency or event whatsoever, whether by
reason of acceleration of maturity of the indebtedness evidenced hereby or
otherwise, shall the amount paid or agreed to be paid to Agent or Lenders for
the use or the forbearance of the indebtedness evidenced hereby exceed the
maximum permissible under applicable law. As used herein, the term "applicable
law", shall mean the law in effect as of the date hereof, provided, however,
that in the event there is a change in the law which results in a higher
permissible rate of interest, then this Note shall be governed by such new law
as of its effective date. In this regard, it is expressly agreed that it is the
intent of Borrower, Agent and Lenders in the execution, delivery and acceptance
of this Note to contract in strict compliance with

                                      EC-2

<PAGE>

the laws of the Commonwealth of Massachusetts from time to time in effect. If,
under or from any circumstances whatsoever, fulfillment of any provision hereof
or of any of the Loan Documents or the Security Documents at the time
performance of such provision shall be due, shall involve transcending the limit
of validity prescribed by applicable law, then the obligation to be fulfilled
shall automatically be reduced to the limit of such validity, and if under or
from any circumstances whatsoever Agent or Lenders should ever receive as
interest an amount which would exceed the highest lawful rate, such amount which
would be excessive interest shall be applied to the reduction of the principal
balance evidenced hereby and not to the payment of interest. This provision
shall control every other provision of all agreements among Borrower, the
Guarantor, Agent and Lenders.

26. Use of Proceeds.

         All proceeds of the Loan shall be used solely for the purposes more
particularly provided for and limited by the Loan Agreement.

27. Security.

         This Note is secured by the Collateral as set forth in the Loan
Agreement. The Collateral for this Note may be held by the Agent, on behalf of
the Lender and the other Lenders.

28. Notices.

         Any notices given with respect to this Note shall be given in the
manner provided for in the Loan Agreement.

29. Governing Law and Consent to Jurisdiction.

         29.1 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.

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

         29.3 Governing Law. This Note and each of the other Loan Documents,
except as otherwise provided in Section 11.4, 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 Borrower under Delaware law requires Delaware
law to apply with respect to matters of authorization to enter into the
transaction contemplated by this Note.

         29.4 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 Borrower under the
                           Security Documents and under the other Loan Documents
                           with respect to each Collateral Property, 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 State in which such

                                      EC-3

<PAGE>

                           Collateral Property is located;

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

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

         Nothing contained herein or any other provisions of the Loan Documents
         shall be construed to provide that the substantive laws of any other
         State 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 11.4, 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 any other State 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 Note, the Loan Agreement 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 Borrower or to collect any outstanding
         indebtedness in accordance with applicable law

         29.5 Consent to Jurisdiction. THE BORROWER AGREES THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS NOTE OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN
THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS OR ANY FEDERAL COURT SITTING
THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE
SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE
ADDRESS SPECIFIED IN THE LOAN AGREEMENT. THE BORROWER HEREBY WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY
SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

30. Waiver of Jury Trial.

         BORROWER, AGENT AND LENDERS MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE 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, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF AGENT OR ANY LENDER RELATING TO THE
ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT
NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN
WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY
LAW, BORROWER HEREBY

                                      EC-4

<PAGE>

WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES. BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDER TO
ACCEPT THIS NOTE AND MAKE THE LOAN.

31. No Oral Change.

         This Note and the other Loan Documents may only be amended, terminated,
extended or otherwise modified by a writing signed by the party against which
enforcement is sought in accordance with the terms and conditions of the Loan
Agreement. In no event shall any oral agreements, promises, actions, inactions,
knowledge, course of conduct, course of dealing, or the like be effective to
amend, terminate, extend or otherwise modify this Note or any of the other Loan
Documents.

32. Rights of the Agent and Holder.

         This Note, and the rights and remedies provided for herein, may be
enforced by Agent, the holder, or any subsequent holder hereof. Wherever the
context permits, each reference to the term "holder" herein shall mean and refer
to Agent, the holder, or the then subsequent holder of this Note.

33. Right to Pledge.

         Lender may at any time pledge all or any portion of its rights under
the Loan Documents including any portion of this Note to any of the twelve (12)
Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12
U.S.C. Section 341. No such pledge or enforcement thereof shall release Lender
from its obligations under any of the Loan Documents.

34. Setoff.

         The terms and provisions of Article 12 of the Loan Agreement are
incorporated herein by reference.

                  [Remainder of page left intentionally blank]

                                      EC-5

<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed
as of the date set forth above as a sealed instrument.

Witness:               BORROWER:

                       CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.

                       By:     Cedar Shopping Centers, Inc., Its General Partner

_________________              By:      ______________________
                               Name:    ______________________
                               Title:   ______________________

                                      EC-6

<PAGE>

                           EXHIBIT D TO LOAN AGREEMENT

                           AUTHORIZED REPRESENTATIVES

1. Leo S. Ullman, President of Cedar Shopping Centers, Inc.
2. Brenda J. Walker, Vice President of Cedar Shopping Centers, Inc.
3. Thomas J. O'Keeffe, Chief Financial Officer of Cedar Shopping Centers, Inc.

                                      ED-1

<PAGE>
                           EXHIBIT E TO LOAN AGREEMENT

                  REQUIRED PROPERTY, HAZARD AND OTHER INSURANCE

         Borrower or the applicable Loan Party shall at all times provide and
maintain the following insurance coverages with respect to each Collateral
Property and the Collateral issued by companies qualified to do business in the
applicable jurisdictions where the Collateral Property is located, having a
Best's Rating of not less than A-VIII and otherwise acceptable to Administrative
Agent in its sole reasonable discretion:

                  (i) physical insurance on an all-risk basis without exception
         (including, without limitation, flood required if property is in a
         "Special Flood Hazard Area" A or V, vandalism and malicious mischief,
         earthquake, collapse, boiler explosion, sprinkler coverage, mold
         infestation, cost of demolition, increased costs of construction and
         the value of the undamaged portion of the building and soft costs
         coverage) covering all the real estate, fixtures and personal property
         to the extent of the full insurable value thereof, on a builder's risk
         non-reporting form prior to completion and occupancy to Occupy
         Endorsement, having replacement cost and agreed amount endorsements
         (with deductibles not in excess of insurable value);

                  (ii) rent loss or business interruption insurance in an amount
         equal to one year's projected rentals or gross revenues;

                  (iii) public liability insurance, with underlying and umbrella
         coverages totaling not less than $2,000,000.00 per occurrence and
         $10,000,000.00 in the aggregate or such other amounts as may be
         determined by Administrative Agent from time to time;

                  (iv) automobile liability insurance (including non-owned
         automobile) with a coverage of $1, 000, 000 per occurrence during
         construction;

                  (v) worker's compensation, employer's liability and other
         insurance required by law;

                  (vi) such other insurance coverages in such amounts as
         Administrative Agent may request consistent with the customary
         practices of prudent developers and owners of similar properties.

An actual insurance policy or certified copy thereof, or a binder, certificate
of insurance, or other evidence of property coverage in the form of Acord 27
(Evidence of Property Coverage), Acord 25 (Certificate of Insurance), or a
30-day binder in form acceptable to Administrative Agent with an unconditional
undertaking to deliver the policy or a certified copy within thirty (30) days,
shall be delivered at closing of the Loan and prior to the first Loan Advance.

         Flood insurance shall be provided if the property or the collateral is
located in a flood zone, flood risk or flood hazard area as designated pursuant
to the Federal Flood Disaster Protection Act of 1973, as amended, and the
Regulations thereunder, or if otherwise reasonably required by Administrative
Agent.

         Administrative Agent, on behalf of the Lenders, shall be named as first
mortgagee on policies of all-risk-type insurance on the Collateral Property, as
loss payee on the Collateral and its contents, and as first mortgagee on
rent-loss or business interruption coverages related thereto.

                                      EE-1

<PAGE>

         Except with respect to public liability insurance, as to which
Administrative Agent, on behalf of the Lenders, shall be named as an additional
insured with respect to the Collateral Property or the Collateral, all other
required insurance coverages shall have a so-called "Mortgagee's endorsement" or
"Lenders' loss-payable endorsement" which shall provide in substance as follows:

                  A. Subject to the terms of this Agreement, loss or damage, if
         any, under the policy shall be paid to Administrative Agent and its
         successors and assigns in whatever form or capacity its interest may
         appear and whether said interest be vested in said Administrative Agent
         in its individual or in its disclosed or undisclosed fiduciary or
         representative capacity, or otherwise, or vested in a nominee or
         trustee of said Administrative Agent.

                  B. The insurance under the policy, or under any rider or
         endorsement attached thereto, as to the interest only of Administrative
         Agent, its successors and assigns, shall not be invalidated nor
         suspended:

                    (a) by any error, omission or change respecting the
                  ownership, description, possession or location of the subject
                  of the insurance or the interests therein or the title
                  thereto; or

                    (b) by the commencement of foreclosure or similar
                  proceedings or the giving of notice of sale of any of the
                  property covered by the policy by virtue of any mortgage, deed
                  of trust, or security interest; or

                    (c) by any breach of warranty, act, omission, neglect, or
                  noncompliance with any provisions of the policy by the named
                  insured, or any one else, whether before or after a loss,
                  which under the provisions of the policy of insurance, would
                  invalidate or suspend the insurance as to the named insured,
                  excluding, however, any acts or omissions of Administrative
                  Agent while exercising active control and management of the
                  insured property.

                  C. Insurer shall provide Administrative Agent and each of the
         Lenders with not less than thirty (30) days, prior written notice of
         cancellation of the policy (for non- payment or any other reason) or of
         the non-renewal thereof.

                  D. The insurer reserves the right to cancel the policy at any
         time, but only as provided by its terms. However, in such case this
         policy shall continue in force for the benefit of Administrative Agent
         for thirty (30) days after written notice of such cancel lation is
         received by Administrative Agent and shall then cease.

                  E. Should legal title to and beneficial ownership of any of
         the property covered under the policy become vested in Administrative
         Agent or its agents, successors or assigns, insurance under the policy
         shall continue for the term thereof for the benefit of Administrative
         Agent.

                  F. All notices herein provided to be given by the insurer to
         Administrative Agent in connection with this policy and Administrative
         Agent's loss payable endorsement shall be mailed to or delivered to
         Administrative Agent by certified or registered mail, return receipt
         requested, as follows:

                                      EE-2

<PAGE>

                    Fleet National Bank
                    Post Office Box 2984
                    Hartford, Connecticut 06101-2984
                    Mail Code CT4M10J
                    Attention:      Central Insurance Unit

                                      EE-3

<PAGE>
                           EXHIBIT F TO LOAN AGREEMENT

             OWNERSHIP INTERESTS AND TAXPAYER IDENTIFICATION NUMBERS
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                                 TAX
                                                                                 IDENTIFICATION
ENTITY NAME                             PARTNERS/MEMBERS                         NUMBER
-------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                      <C>
Cedar-South Philadelphia I,             Cedar-South Philadelphia II,             90-0082050
LLC                                     LLC (100%)

-------------------------------------------------------------------------------------------------------------
Cedar-South Philadelphia II,            Cedar Shopping Centers                   90-0082060
LLC                                     Partnership, L.P. (100%)

-------------------------------------------------------------------------------------------------------------
Cedar-Riverview LP                      Cedar-Riverview LLC (1%;                 20-0422200
                                        general partner); CSC-
                                        Riverview LLC (99%; limited
                                        partner)

-------------------------------------------------------------------------------------------------------------
Cedar-Riverview LLC                     Cedar Shopping Centers                   20-0151534
                                        Partnership, L.P. (100%)

-------------------------------------------------------------------------------------------------------------
CSC-Riverview LLC                       Cedar Shopping Centers                   20-0151125
                                        Partnership, L.P. (100%)

-------------------------------------------------------------------------------------------------------------
Cedar Lender LLC                        Cedar Shopping Centers                   20-0447171
                                        Partnership, L.P. (100%)

-------------------------------------------------------------------------------------------------------------
Delaware 1851 Associates, LP            Cedar-Columbus LLC (1%;                  23-2999402
                                        general partner); CSC-
                                        Columbus LLC (99%; limited
                                        partner)

-------------------------------------------------------------------------------------------------------------
Cedar-Columbus LLC                      Cedar Shopping Centers                   20-0151547
                                        Partnership, L.P. (100%)

-------------------------------------------------------------------------------------------------------------
Cedar Sunset Crossing, LLC              Cedar Shopping Centers                   20-0579586
                                        Partnership, L.P. (100%)
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                      EF-1

<PAGE>
<TABLE>
<CAPTION>
<S>                                     <C>                                     <C>
-------------------------------------------------------------------------------------------------------------
CSC-Columbus LLC                        Cedar Shopping Centers                   20-0151526
                                        Partnership, L.P. (100%)
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                      EG-1

<PAGE>

                           EXHIBIT G TO LOAN AGREEMENT

                             COMPLIANCE CERTIFICATE

TO:      The Administrative Agent and Lenders party to the Loan Agreement
         Described Below

         This Compliance Certificate is furnished pursuant to that certain Loan
Agreement dated as of January 30, 2004 (the "Loan Agreement"), among Cedar
Shopping Centers Partnership, L.P. ("Borrower"), Fleet National Bank, as
Administrative Agent and the Lenders identified therein. Unless otherwise
defined herein, capitalized terms used in this Compliance Certificate have the
meanings ascribed thereto in the Loan Agreement.

         THE UNDERSIGNED HEREBY CERTIFIES THAT:

         1. I am the duly elected/authorized ______________________ of Cedar
Shopping Centers, Inc., general partner of the Borrower.

         2. I have reviewed the terms of the Loan Agreement and I have made, or
have caused to be made under my supervision, a review of the transactions and
conditions of the Borrower during the accounting period covered by the attached
financial statements.

         3. The examinations described in paragraph 2 did not disclose, and I
have no knowledge of, the existence of any condition or event which constitutes
an Event of Default or an event which, with notice or the passage of time or
both, would constitute an Event of Default during or at the end of the
accounting period covered by the attached financial statements or as of the date
of this Certificate, except as set forth below.

         4. Schedule 1 attached hereto sets forth financial data and
computations at and for the period ending __________ evidencing the Borrower's
compliance with certain covenants of the Loan Agreement, except as set forth
below, all of which data and computations are true, complete and correct in all
material respects to my knowledge.

         Described below are the exceptions, if any, to paragraphs 3 and 4,
listing the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:
______________________________________________________________________________

______________________________________________________________________________

                                      EG-2

<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Certificate
this ___ day of__________, 200___.

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

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

                                           By:      _______________________
                                           Name:    _______________________
                                           Title:   _______________________

                                      EG-3

<PAGE>
                      Schedule 1 to Compliance Certificate
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
               Covenant                              Requirement                                Actual
-----------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                                <C>
Interest Expense Coverage               Not less than 2.00:1
-----------------------------------------------------------------------------------------------------------------------
Leverage Ratio                          Less than 70%
-----------------------------------------------------------------------------------------------------------------------
Fixed Charge Ratio                      Not less than 1.50:1.
-----------------------------------------------------------------------------------------------------------------------
Borrower's Net Worth                    Not less than 85% of the
                                        Borrower's Net Worth as of December 31,
                                        2003, plus 85% of cumulative net cash
                                        proceeds, as set forth in the Loan
                                        Agreement
-----------------------------------------------------------------------------------------------------------------------
Occupancy Ratio for                     Not less than 85% for the
Borrowing Base Properties               aggregate of all Borrowing
                                        Base Properties, and not less
                                        than 80% for each individual
                                        Borrowing Base Property
-----------------------------------------------------------------------------------------------------------------------
Aggregate Pro Rata amount               Less than 30% of the
of the Variable Rate                    aggregate Pro Rata amount of
Indebtedness of the                     the total Debt of the
Consolidated CSC Entities               Consolidated CSC Entities
and the Unconsolidated CSC              and the Unconsolidated CSC
Entities                                Entities
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      EG-4

<PAGE>
                           EXHIBIT H TO LOAN AGREEMENT

                        FORM OF ASSIGNMENT AND ACCEPTANCE

                                                    Dated: as of _______________

         Reference is made to the Loan Agreement, dated as of January 30, 2004
(as amended and in effect from time to time, the "Loan Agreement"), by and among
CEDAR SHOPPING CENTERS PARTNERSHIP, L.P., a Delaware limited partnership having
an address at c/o Cedar Shopping Centers, Inc., 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 become parties to the Loan Agreement (Fleet National Bank and the other
lending institutions which 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"). Capitalized terms used
herein and not otherwise defined shall have the meanings assigned to such terms
in the Loan Agreement.

         ___________________ (the "Assignor") and ________________ (the
"Assignee") agree as follows:

         1. The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, a __________ (____%)
interest in and to all of the Assignor's rights and obligations under the Loan
Documents as of the Effective Date (as herein after defined). The amount of the
Assignor's Commitment being purchased by and assigned to the Assignee as of the
Effective Date is $________________

         2. The Assignor (i) represents that as of the date hereof, its
Commitment Percentage (without giving effect to assignments thereof which have
not yet become effective) is ________ and the outstanding balance of the Loan
owing to the Assignor under the Note held by the Assignor (unreduced by any
assignments thereof which have not yet become effective) is $_______________;
(ii) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with the Loan Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
other instrument or document furnished pursuant thereto, other than that the
Assignor is the legal and beneficial owner of the interest being assigned by it
hereunder, that such interest is free and clear of any adverse claim, that it is
legally authorized to enter into this Assignment and Acceptance, and it has no
knowledge of the occurrence of an Event of Default under the Loan Agreement;
(iii) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, or any other person which
may be primarily or secondarily liable in respect of any of the Obligations or
any of their obligations, or the performance or observance by the Borrower, or
any other person prima rily or secondarily liable in respect of any of the
obligations under any of the Loan Documents or any other instrument or document
delivered or executed pursuant thereto; and (iv) requests that the Agent reflect
on the Register maintained by the Agent the assignment to the Assignee of that
portion of the Commitment as set forth herein.

                                      EH-1
<PAGE>

         3. The Assignee (i) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (ii) confirms that it
has received a copy of the Loan Documents, together with copies of the most
recent financial statements delivered pursuant to the Loan Agreement and such
other documents and information as the Assignee has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and
Acceptance; (iii) agrees that it will, independently and without reliance upon
the Assignor or any other Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents; (iv) confirms that it
is an Eligible Assignee; (v) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers as are expressly
delegated to or conferred upon the Assignor as agent by the terms of the Loan
Documents together with such other powers as are reasonably incidental
thereto;(vi) agrees that it will perform all the obligations which by the terms
of the Loan Documents are required to be performed by the Assignee as a Lender
in accordance with the terms of the Loan Documents; and (vi) specifies as to its
address for notices the office set forth beneath its name on the signature page
hereof.

         4. The effective date for this Assignment and Acceptance shall be
______________ , ______(the "Effective Date"). Following the execution of this
Assignment and Acceptance, it will be delivered to the Agent for acceptance and
recording in the Register by the Agent.

         5. Upon such acceptance and recording, from and after the Effective
Date, (i) the Assignee shall be a party to the Loan Agreement and, to the extent
provided in this Assignment and Acceptance, have the rights and obligations of a
Lender thereunder, and (ii) the Assignor shall, with respect to that portion of
its interest under the Loan Documents assigned hereunder relinquish its future
rights and be released from its future obligations under the Loan Documents but
shall remain liable for all obligations which arose prior to such assignment.

         6. Upon such acceptance and recording, from and after the Effective
Date, the Agent shall make all payments in respect of the rights and obligations
assigned hereby (including payments of principal, interest, fees and other
amounts) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments for periods prior to the Effective Date by the Agent or
with respect to the making of this assignment directly between themselves.

         7. THIS ASSIGNMENT AND ACCEPTANCE IS INTENDED TO TAKE EFFECT AS A
SEALED INSTRUMENT TO BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE COMMONWEALTH OF MASSACHUSETTS.

                                      EH-2

<PAGE>

         IN WITNESS WHEREOF, intending to be legally bound, each of the
undersigned has caused this Assignment and Acceptance to be executed on its
behalf by its officer thereunto duly authorized, as of the date first above
written.

                                              ______________________________
                                                        "Assignor"

                                              By:___________________________

                                              Title:________________________

                                              ______________________________
                                                        "Assignee"

                                              By:___________________________

                                              Title:________________________

                           Notice Address:    ______________
                                              ______________
                                              ______________
                                              Telephone No.: _______________
                                              Telecopier No.: ______________

                                      EH-3

<PAGE>

Consented to in accordance with the terms of the Loan Agreement as of this ___
day of ______________, 20__.

AGENT:                   FLEET NATIONAL BANK

                         By: ______________________________
                         Name: ____________________________
                         Title: ___________________________

BORROWER:                CEDAR SHOPPING CENTERS PARTNERSHIP, L.P.

                         By:     Cedar Shopping Centers, Inc., general partner

                                 By:    _______________________________
                                 Name:  _______________________________
                                 Title: _______________________________

                                      EH-4

<PAGE>

                           EXHIBIT I TO LOAN AGREEMENT

                               LENDERS' COMMITMENT
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Lender                                  Commitment Amount                       Commitment Percentage
--------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                     <C>
FLEET NATIONAL BANK                     $19,000,000.00                          19%
--------------------------------------------------------------------------------------------------------------
COMMERZBANK AG                          $19,000,000.00                          19%
NEW YORK BRANCH
--------------------------------------------------------------------------------------------------------------
PB CAPITAL                              $14,000,000.00                          14%
CORPORATION
--------------------------------------------------------------------------------------------------------------
MANUFACTURERS AND                       $14,000,000.00                          14%
TRADERS TRUST
COMPANY
--------------------------------------------------------------------------------------------------------------
SOVEREIGN BANK                          $14,000,000.00                          14%
--------------------------------------------------------------------------------------------------------------
RAYMOND JAMES BANK,                     $10,000,000.00                          10%
FSB
--------------------------------------------------------------------------------------------------------------
CITIZENS BANK                           $10,000,000.00                          10%
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                      EI-1

<PAGE>

                                    EXHIBIT J

                            BORROWING BASE PROPERTIES

--------------------------------------------------------------------------------
Borrowing Base Property                   Adjusted Appraised Value as of Closing
--------------------------------------------------------------------------------
South Philadelphia Shopping Plaza         $36,400,000.00
Philadelphia, Pennsylvania
--------------------------------------------------------------------------------
Riverview Shopping Center                 $21,900.000.00
Philadelphia, Pennsylvania
--------------------------------------------------------------------------------
Sunset Crossing Shopping Center, Dickson, $11,250,000.00
Pennsylvania
--------------------------------------------------------------------------------
Columbus Crossing Shopping Center         $23,000,000.00
Philadelphia, Pennsylvania
--------------------------------------------------------------------------------

                                      EJ-1

<PAGE>
                                   EXHIBIT EC

                              ESTOPPEL CERTIFICATE

                       ESTOPPEL CERTIFICATE AND AGREEMENT

         WHEREAS, _________________ a _____________ having an address at
_________________ (hereinafter, the "Landlord"), is the owner in fee simple of
that certain parcel of real estate numbered ______________________, and commonly
known as ____________________________, as more particularly described in Exhibit
A annexed hereto (hereinafter, the "Premises");

         WHEREAS, the Landlord has leased the Premises to __________________, a
_____________________ having and address at _______________________
(hereinafter, the "Tenant"), pursuant to that certain ground lease dated as of
____________ __, ______ (hereinafter, with any amendments, modifications,
extensions, replacements or renewals, the "Lease"), a copy of which is attached
hereto as Exhibit B and made a part hereof (All capitalized terms used herein
which are not otherwise defined shall have the meaning ascribed to such term
under the Lease);

         WHEREAS, Fleet National Bank, a national banking association having an
address at 100 Federal Street, 8th Floor, Boston, Massachusetts 02110, as agent
(hereinafter, the "Agent") on behalf of itself and certain other lenders
(hereinafter, individually and collectively referred to as the "Lender" or
"Lenders"), has agreed to establish a loan arrangement (hereinafter, the "Loan
Arrangement") with 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");

         WHEREAS, the Tenant has substantial financial dealings with the
Borrower and is 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 Tenant;

         WHEREAS, as a prior condition to establishing the Loan Arrangement, the
Agent and the Lenders require that, among other collateral to be granted, the
Tenant grant to the Agent, on behalf of the Lenders, a leasehold mortgage in and
to the rights of the Tenant to the Lease and the Premises and a security
interest in other property of the Tenant, said leasehold mortgage and security
interests to be created by the execution and delivery by the Tenant of that
certain Leasehold Mortgage and Security Agreement dated as of January __, 2004
(hereinafter, with any extensions, modifications and amendments, the "Leasehold
Mortgage");

         WHEREAS, as a further condition to establishing the Loan Arrangement,
the Agent and

                                      EEC-1

<PAGE>

the Lenders require that the Landlord certify, represent, covenant, and agree to
the matters described in this Estoppel Certificate and Agreement (hereinafter,
this "Estoppel Certificate"); and

         WHEREAS, it is in the best interest of the Landlord that the Loan
Arrangement be established.

         NOW, THEREFORE, in consideration of the foregoing, and upon the request
of the Agent and the Lenders, Landlord and the Tenant hereby make the following
representations and covenants:

1. The Landlord and Tenant represent that:

         1.1      the Lease is currently in full force and effect;

         1.2      the Lease has not been modified or amended;

         1.3      neither the Tenant nor Landlord is in default under the Lease,
                  nor has any event occurred which is, or solely with the
                  passage of time would be, an event of default under the Lease;
                  and

         1.4      the term of the Lease commences on ________ __, ____ and
                  expires on _______ ___, ____.

2.       The Landlord represents that all rent presently due under the Lease has
         been paid in full, and no additional rent is presently due under the
         Lease; and as of the date of this Estoppel Certificate, there are no
         other payments due and payable from the Tenant to the Landlord under
         the Lease.

3.       The Landlord represents and warrants that its fee interest in the
         Premises is unencumbered, except as set forth in Exhibit C attached
         hereto.

4.       The Landlord acknowledges and agrees that the interest of the Landlord
         in and to the Premises and the Lease shall not be encumbered beyond
         that which such interests are encumbered as of the date hereof in any
         manner whatsoever without the prior written consent of the Agent.

5.       The Landlord hereby:

         5.1      acknowledges and consents to the granting of the Leasehold
                  Mortgage, and acknowledges and recognizes that the Agent, as
                  the mortgagee of the leasehold interest in the Lease, is
                  entitled to the benefit of all of the rights and privileges
                  provided to a leasehold mortgagee under the Lease;

                                      EEC-2

<PAGE>

         5.2      recognizes the rights of the Agent, and any successor,
                  assignee or transferee of the Agent, in and to the Premises as
                  described in the Leasehold Mortgage, and consents to the
                  exercise by the Agent of its rights under the Leasehold
                  Mortgage upon the occurrence of an event of default by the
                  Tenant under the Leasehold Mortgage;

         5.3      recognizes the right of the Agent, and any successor, assignee
                  or transferee of the Agent, to exercise any options,
                  including, without limitation, any renewal or extension
                  options or rights of first refusal provided to the Tenant
                  under the Lease, and agrees that if, prior to the exercise by
                  the Agent of its rights under the Leasehold Mortgage, the
                  Tenant fails to exercise within the applicable time periods
                  set forth in the Lease any option including, without
                  limitation, any renewal or extension option or right of first
                  refusal, the Landlord shall notify the Agent as
                  attorney-in-fact for the Tenant and the Agent shall be
                  authorized, at its option, to exercise any option or right
                  within sixty (60) days of receipt of such notice and the
                  Landlord shall recognize said exercise of any option or right
                  by the Agent;

         5.4      agrees that the interest of the Landlord in and to the
                  Premises and the Lease shall not be transferred or assigned
                  unless the transferee or assignee provides a written agreement
                  to the Agent that (i) said transfer or assignment is subject
                  to the terms and conditions of the Lease, and this Estoppel
                  Certificate, and (ii) the transferee or assignee assumes the
                  obligations of the Landlord thereunder and hereunder;

         5.5      acknowledges that notwithstanding the occurrence of any event
                  of default under the Lease, the Landlord will not terminate,
                  or allow or suffer the termination of, the Lease, without the
                  prior written consent of Agent; and

         5.6      agrees that notwithstanding the terms of the Lease, any and
                  all insurance proceeds or eminent domain or condemnation
                  awards or proceeds with respect to the Premises shall be
                  subject to the approval of the Agent and shall be payable to
                  the Agent, or otherwise made available for the repair or
                  restoration of the Premises, all in accordance with the terms
                  and provisions of the Leasehold Mortgage.

6.       Upon notice to the Landlord by the Agent of the exercise of Agent's
         rights against Tenant (whether pursuant to the Leasehold Mortgage or
         otherwise) the Landlord shall:

         6.1      not interfere with any enforcement by the Agent of the Agent's
                  rights in and to the personal property of the Tenant located
                  on the Premises;

                                      EEC-3

<PAGE>

         6.2      not distrain nor assert any claim against the personal
                  property of Tenant;

         6.3      permit the Agent to enter upon the Premises and remove the
                  personal property from the Premises, provided, the Agent
                  agrees that it shall promptly repair, at the Agent's expense,
                  any physical damage to the Premises caused by said removal;
                  and

         6.4      not interfere with the disposal of the personal property by
                  sale (by public auction or otherwise) conducted on the
                  Premises.

7.       Until such time as the Agent executes and records a discharge of the
         Leasehold Mortgage:

         7.1      no modifications, extensions, renewals or surrender of the
                  Lease shall be effective without the prior written consent of
                  the Agent;

         7.2      the Landlord shall not convey the Premises to the Tenant
                  without the prior written consent of the Agent;

         7.3      any and all rights, easements and development agreements to be
                  granted by, or entered into with, the Landlord relative to the
                  Premises shall not be granted or entered into without the
                  prior written consent of the Agent; and

         7.4      the Landlord shall waive any provisions of the Lease which
                  provide that Tenant shall, upon request of the Landlord,
                  subordinate the Lease to any lien of any present or future
                  mortgages granted by the Landlord.

8.       In the event of any default by the Tenant under the Lease, the Landlord
         shall:

         8.1        cause a copy of any notice of default by the Tenant under
                    the Lease or notice of termination of the Lease to be sent
                    to the Agent, and the Landlord agrees that any such notice
                    of default or termination shall not be deemed duly given and
                    effective unless and until a copy of such notice is actually
                    received by the Agent; and

         8.2        permit the Agent to cure or cause to be cured such default
                    within thirty (30) days of the receipt of notice from the
                    Landlord of Tenant's default if such default may be cured by
                    the payment of money, or, otherwise, within sixty (60) days
                    of the receipt of such notice.

9.       If the Agent fails to cause any default of the Tenant under the Lease
         to be cured, or such default is incapable of being cured, during the
         applicable time period, the Landlord shall further refrain from
         exercising its rights and/or remedies under the Lease and shall not

                                      EEC-4

<PAGE>

         terminate the Lease if the Agent has provided the Landlord with written
         notice that either:

         9.1      the Agent intends to cause the default to be cured and the
                  Agent is diligently pursuing the cure of such default; or

         9.2      the Agent has or intends to make demand upon Tenant for
                  payment or performance under any agreement between Tenant and
                  the Agent pertaining to the Loan Arrangement and the Agent
                  diligently pursues the exercise of its rights thereunder.

10.      Any successor, assignee or transferee of the Agent shall have thirty
         (30) days from the consummation of such succession, assignment, or
         transfer within which to cure or cause to be cured any default of the
         Tenant under the Lease.

11.      Any default of the Tenant under the Lease which is cured or which is
         caused to be cured by the Agent within the applicable cure period,
         shall be deemed to have been waived by the Landlord and the Landlord
         shall not be entitled to exercise any rights or remedies granted to
         Landlord under the Lease on account of the occurrence of such default.

12.      In the event any default of Tenant under the Lease is incapable of
         being cured, the Landlord shall, upon the request of the Agent, execute
         a new lease with the Agent upon the same terms and conditions (but
         providing for the revival of any rights and/or options which may have
         lapsed due to the Tenant's action or inaction under the Lease) as the
         Lease and such new lease shall have the same relative priority in
         right, title and interest in and to the Premises as the Lease.

13.      The Agent shall not become liable for the obligations of the Tenant
         under the Lease unless and until the Agent obtains possession of the
         Premises and expressly agrees to assume all such obligations, and then,
         only for the period during which the Agent is in possession of the
         Premises. Upon the sale, transfer or assignment by the Agent of its
         interest in the Lease and/or the Premises, the Agent shall have no
         further liability to the Landlord.

14.      Whether or not the Agent assumes the obligations of Tenant pursuant to
         Section 13, above, the Agent shall have no liability to the Landlord
         for any obligations of Tenant under the Lease arising prior to such
         assumption by the Agent.

15.      All notices under this Estoppel Certificate shall be sent certified
         mail, return receipt requested as follows:

         If to Landlord:

                           _________________________

                                      EEC-5

<PAGE>

                           _________________________
                           _________________________
                           Attention: ______________

                  With a copy to:

                           _________________________
                           _________________________
                           _________________________
                           Attention: ______________

         If to the Tenant:

                           _________________________
                           _________________________
                           _________________________
                           Attention: ______________

                  With a copy to:

                           _________________________
                           _________________________
                           _________________________
                           Attention: ______________

         If to the Agent:

                           Fleet National Bank
                           100 Federal Street, 8th Floor
                           Boston, Massachusetts 02110
                           Attention: James L. Keough, Director

                  With a copy to:

                           Riemer & Braunstein LLP
                           Three Center Plaza
                           Boston, Massachusetts 02108
                           Attn: Kevin J. Lyons, Esquire

         All notices hereunder shall be deemed to have been received three (3)
         days after the date of mailing in accordance with the above described
         requirements.

16.      Upon the request of the Agent, the Landlord will provide the Agent with
         estoppel

                                      EEC-6
<PAGE>

         certificates, in form acceptable to Agent, with respect to the
         status of the Lease and the compliance by the Landlord and/or Tenant
         with regard to specific terms, provisions and conditions set forth
         thereunder.

17.      Each party hereto agrees to execute such documents as may be reasonably
         required from time to time to evidence or effectuate the terms and
         provisions hereof.

18.      This Estoppel Certificate is binding on, and shall inure to the benefit
         of, the Tenant, the Agent, and the Landlord, and each of their
         successor and assigns.

             [The balance of this page is intentionally left blank]

                                      EEC-7

<PAGE>

         It is intended that this Estoppel Certificate take effect as a sealed
instrument as of this ___ day of ____________, 2003.

                                    LANDLORD:

                                    _________________________

                                    By:     ______________________________
                                    Name:   ______________________________
                                    Title:  ______________________________

                                    TENANT:

                                    __________________________

                                    By:     ______________________________
                                    Name:   ______________________________
                                    Title:  ______________________________

                                    AGENT:

                                    FLEET NATIONAL BANK

                                    By:     ______________________________
                                    Name:   ______________________________
                                    Title:  ______________________________

                                      EEC-8

<PAGE>

                                    EXHIBIT A

                                    Premises

                                 (See Attached)

                                      EEC-9

<PAGE>

                                    EXHIBIT B

                                      Lease

                                 (See Attached)

                                      EEC-10

<PAGE>

                                    EXHIBIT C

                                  Encumbrances

                                     EEC-11

<PAGE>

                                   EXHIBIT TP

                                 THEATER PARCEL

ALL THAT CERTAIN lot or piece of ground, with the buildings and improvements
thereon erected, SITUATE in the 1st Ward, City of Philadelphia, Commonwealth of
Pennsylvania, being bounded and described according to a Plan of Survey,
prepared by John J. Leapson, Professional Land Surveyor, dated February 19,
1997, last revised December 12, 2003, as follows:

BEGINNING at the intersection of the Northeast side of Dickinson Street (50 feet
wide) with the Southeast side of Water Street (50 feet wide); thence along the
same North 14 degrees 41 minutes 39 seconds East 331.03 feet to a point in line
of Parcel "B" on said Plan; thence along the same the following two (2) courses
and distances (1) South 63 degrees 36 minutes 02 seconds East passing partly
through a party wall 61.271 feet to a point (2) North 14 degrees 41 minutes 39
seconds East 80.761 feet to a point on the Southwest side of Reed Street (80
feet wide); thence along the same South 75 degrees 13 minutes 21 seconds East
195.00 feet to a point on the Northwest side of Christopher Columbus Boulevard
(formerly Delaware Avenue 150 feet wide); thence along the same South 14 degrees
41 minutes 39 seconds West 399.520 feet to a point on the previously mentioned
Northeast side of Dickinson Street (50 feet wide); thence along the same North
75 degrees 13 minutes 21 seconds West 255.000 feet to the first mentioned point
and place of beginning.

CONTAINING 97,401 square feet or 2.236 acres.

BEING known as #1400 South Christopher Columbus Boulevard (formerly Delaware
Avenue).

BEING Registry #9 S 16-93, 94.

                                      ETP-1

<PAGE>

                                  SCHEDULE 1.3

1.       $17,000,000.00 from Cedar Shopping Centers Partnership, L.P., to Fleet
         National Bank to be applied against the existing $17,000,000.00 loan of
         Fleet National Bank, as agent under that certain Loan Agreement dated
         December 23, 2003, to Cedar Shopping Centers Partnership, L.P.

2.       $1,000,000.00 to be advanced to the Borrower pay to certain closing and
         transactional costs and expenses, and other working capital needs of
         the Borrower.

                                       S-1

<PAGE>

                               SCHEDULE 6.14.2(i)

--------------------------------------------------------------------------------
BORROWING BASE PROPERTY                      FEE OR LEASEHOLD ESTATE INTEREST
--------------------------------------------------------------------------------
South Philadelphia Shopping Plaza            Leasehold
Philadelphia, Pennsylvania

--------------------------------------------------------------------------------
Riverview Shopping Center                    Fee and Leasehold
Philadelphia, Pennsylvania

--------------------------------------------------------------------------------
Sunset Crossing Shopping Center              Fee
Dickson, Pennsylvania

--------------------------------------------------------------------------------
Columbus Crossing Shopping Center            Fee
Philadelphia, Pennsylvania

--------------------------------------------------------------------------------

RIGHTS OF FIRST REFUSAL

Right of First Refusal, executed on October 31, 2003, and effective as of
November 3, 2003, granted by Cedar-Riverview LP, a Pennsylvania limited
partnership, to Firehouse Realty Corp., a Pennsylvania corporation, Reed
Development Associates, Inc., a Pennsylvania corporation, South River View
Plaza, Inc., a Pennsylvania corporation, River View Development Corp., a
Pennsylvania corporation, and Riverview Commons, Inc., a Pennsylvania
corporation.

Right of First Refusal, executed on November 19, 2003, and effective as of
December 9, 2003, granted by Delaware 1851 Associates, LP, a Pennsylvania
limited partnership, to Welsh-Square, Inc., a Pennsylvania corporation,
Indenture of Trust of Bart Blatstein dated as of June 9, 1998, a Pennsylvania
trust, and Irrevocable Indenture of Trust of Barton Blatstein dated July 13,
1999, a Pennsylvania trust.

                                       S-2

<PAGE>

                               SCHEDULE 6.14.4(ii)

                                      NONE

                                       S-3

<PAGE>

                              SCHEDULE 6.14.4(iii)

                                      NONE

                                       S-4

<PAGE>

                               SCHEDULE 6.14.4(iv)

                                      NONE

                                       S-5

<PAGE>

                                 SCHEDULE 6.14.5

-------------------------------------------------------------------------------
                                       AFFILIATED WITH AN AFFILIATE OF A LOAN
GROUND LESSOR(S)                       PARTY?
-------------------------------------------------------------------------------
SPSP Corporation                       No
44 West Lancaster Avenue
Suite 110
Ardmore, Pennsylvania 19003

-------------------------------------------------------------------------------
Passyunk Supermarket, Inc.             No
44 West Lancaster Avenue
Suite 110
Ardmore, Pennsylvania 19003

-------------------------------------------------------------------------------
Twenty Fourth Street Passyunk          No
Partners, L.P.
44 West Lancaster Avenue
Suite 110
Ardmore, Pennsylvania 19003
-------------------------------------------------------------------------------

                                       S-6

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