Document:

EXHIBIT 10.5

                                    As of January 11, 2006

Mr. Mark Shapiro

                  Re:   Grant of Noncontingent Stock Option

Dear Mr. Shapiro:

      The Compensation Committee (the "Committee") of the Board of Directors of
Six Flags Inc., a Delaware corporation (the "Company"), has granted certain
options under the Company's 2001 Stock Option and Incentive Plan (the "Plan").
The purpose of the Plan is to afford officers and key employees of the Company
and subsidiary corporations who are responsible for the continued growth of the
Company an opportunity to acquire a proprietary interest in the Company, and
thus to create in such officers and employees an increased interest in and a
greater concern for the welfare of the Company. A copy of the Plan is annexed to
this letter agreement (the "Stock Option Agreement") and shall be deemed a part
of this Stock Option Agreement as if fully set forth herein subject to the terms
of the Employment Agreement between you and the Company, dated as of September
26, 2006 (the "Employment Agreement"). Unless the context otherwise requires,
all terms defined in the Plan shall have the same meaning when used herein
subject to the terms of the Employment Agreement.

      1.    The Grant

            On January 11, 2006 (the "Date of Grant"), the Company granted to
you, as a matter of separate inducement and not in lieu of any salary or other
compensation for your services, the right and option to purchase (the "Option"),
in accordance with the terms and conditions set forth in the Plan, an aggregate
of 475,000 shares of common stock of the Company (the "Option Shares") at a
price of $9.21 per share (the "Exercise Price"). The Option is subject to the
limitations set forth in this Stock Option Agreement and in the Employment
Agreement. In the event of any conflict or inconsistency between the terms
hereof and the terms of the Employment Agreement, the terms of the Employment
Agreement shall govern.

            The Option is intended to be an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code") ("Incentive Stock Option"), to the extent permitted by Section 422(d) of
the Code, but the Company makes no warranty as to the tax treatment of the
Option or the qualification of the Option as an Incentive Stock Option. To the
extent all or any portion of the Option fails to qualify as an Incentive Stock
Option, such portion shall be a nonqualified stock option.

      2.    Restrictions on Time of Exercise

            Subject to the provisions and limitations contained herein
(including, without limitation, the conditions set forth in Section 1) and in
the Plan and until the termination of the Option as provided for herein, you may
exercise the Option, on a cumulative basis, as follows:

            (a) up to twenty percent (20%) of the total number of Option Shares
may be purchased by you on or after the date hereof;

            (b) up to an additional twenty percent (20%) of the total number of
Option Shares may be purchased by you on or after the first anniversary of the
date hereof;

            (c) up to an additional twenty percent (20%) of the total number of
Option Shares may be purchased by you on or after second anniversary of the date
hereof;

            (d) up to an additional twenty percent (20%) of the total number of
Option Shares may be purchased by you on or after the third anniversary of the
date hereof; and

            (e) up to an additional twenty percent (20%) of the total number of
Option Shares may be purchased by you on or after the fourth anniversary of the
date hereof.

            In the event of a spin off, split up, stock split, stock dividend,
share combination, exchange of shares, recapitalization, merger, consolidation,
reorganization, dissolution, liquidation or other comparable distributions,
changes or transactions of or by the Company, appropriate adjustments to the
Exercise Price, number and/or type of shares into which the Option is
exercisable shall be made to give proper effect to such event so as to avoid
dilution of the value of the Option.

            If the Option is not exercised for the total number of Option Shares
available for purchase during such period, the Option shall not thereby
terminate as to such unexercised portion, but shall be cumulative. In no event
may you exercise the Option for a fraction of a share.

            Any unexercised portion of the Option shall automatically and
without notice terminate and become null and void upon the expiration of ten
(10) years from the Date of Grant (the "Option Term"); provided, however, that
if your employment with the Company terminates (and your employment with any
subsidiary corporation of the Company that you are then employed with also
terminates) before the expiration of the Option Term, the Option shall terminate
on the applicable date described in Section 4 below.

            If a change of control (as defined below, a "Change of Control") of
the Company occurs, then the restrictions on the exercise of the Option
described above shall become null and void and cease to exist, the Option shall
fully vest immediately and the Option shall immediately become exercisable in
full. For this purpose, a Change of Control means:

                  (i) A change of control of the direction and administration of
the Company's business of a nature that would be required to be reported in
response to item 6(e) of Schedule 14A of Regulation 14A (or any successor rule
or regulation) promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), whether or not the Company is then subject to such
reporting requirement; or

                  (ii) Any "person" (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act but excluding any employee benefit plan of the
Company) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing thirty-five percent (35%) or more of the combined voting power of
the Company's outstanding securities then entitled ordinarily (and apart from
rights accruing under special circumstances) to vote for the election of
directors; or

                  (iii) During any period of two (2) consecutive years, the
individuals who at the beginning of such period constitute the Board of
Directors or any individuals who would be continuing directors (as defined
below, the "Continuing Directors") cease for any reason to constitute at least a
majority of the Board of Directors; or

                  (iv) The Board of Directors shall approve a sale of all or
substantially all of the assets of the Company; or

                  (v) The Board of Directors shall approve any merger,
consolidation or like business combination or reorganization of the Company, the
consummation of which would result in the occurrence of any event described in
clause (ii) or (iii) above.

            For purposes of this Stock Option Agreement, Continuing Directors
means (i) the directors of the Company in office on the date hereof, (ii) any
successor to any such director and (iii) any additional director who after the
date hereof (A) is nominated or selected by a majority of the Continuing
Directors in office at the time of his nomination or selection and (B) at the
time of his nomination or selection is not an "affiliate" or "associate" (as
defined in Regulation 12B under the Exchange Act) of any person who is the
beneficial owner, directly or indirectly, of securities representing ten percent
(10%) or more of the combined voting power of the Company's securities then
entitled ordinarily to vote for the election of directors.

      3.    Other Terms of Exercise

            Any exercise by you of the Option shall be in writing, addressed to
the Secretary of the Company at its principal place of business (the "Notice"),
substantially in the form of Schedule A hereto, and shall specify the number of
Option Shares to be purchased, the form of payment of the Exercise Price and a
business day not more than fifteen (15) days from the date the Notice is given
for payment of the Exercise Price (the "Payment Date").

            The Exercise Price is payable by delivery to the Company on the
Payment Date of any combination of the following:

            (a) a validly issued personal check payable to the order of the
Company in the full amount of the Exercise Price for that portion of the Option
being exercised by delivery of such check;

            (b) common stock of the Company (in proper form for transfer and
accompanied by all requisite stock transfer tax stamps or cash in lieu thereof)
owned by you (or your legal representative) having a fair market value equal to
the full amount of the Exercise Price for that portion of the Option being
exercised by delivery of such stock (the fair market value of the stock so
delivered being determined (i) by the Board of Directors or the Committee in its
sole discretion as of the date immediately preceding the Payment Date or (ii) in
such other manner or at such other time as may be required to comply with or
conform to the requirements of any applicable law or regulation); or

            (c) by surrender of all or part of the Option to the Company in
exchange for a number of shares of the Company's common stock having a total
market value as of the date of surrender, equal to the excess of (i) the market
value, as of the date of surrender, of the number of shares that could be
acquired by the exercise of the portion of the Option that is surrendered, over
(ii) the aggregate Exercise Price which would otherwise be paid to the Company
upon a normal exercise of the Option as to that number of shares. In the event
the foregoing calculation would require the issuance of a fractional share, the
Company shall, in lieu thereof, pay cash to the holder in an amount equal to the
fair market value of such fractional share as of the date of surrender.

      4.    Termination of Employment

            Upon the termination of your employment with (i) the Company and
(ii) any subsidiary corporation of the Company with which you are employed at
the time of your termination of employment with the Company, the Option shall,
to the extent not previously exercised, automatically terminate and become null
and void; except that:

            (a) if you shall die while in the employ of the Company (or of any
subsidiary corporation of the Company if you are no longer in the employ of the
Company at the time of your death), the Option shall fully vest (without regard
to whether the time vesting requirements in Section 2 have been met) and become
exercisable immediately, the restrictions thereon shall immediately lapse and
your legal representative, or such other person who acquired the Option by
bequest or inheritance or otherwise by reason of your death, may exercise the
Option, to the extent not theretofore exercised, at any time during the
originally scheduled Option Term;

            (b) if your employment with the Company (or with any subsidiary
corporation of the Company if you are not employed by the Company at the time of
your becoming disabled) shall terminate by reason of your disability (within the
meaning of Section 22(e)(3) of the Code but only if and to the extent any
portion of the Option constitutes an Incentive Stock Option; otherwise
disability shall have the meaning given it in Section 4(c)(iii) of the
Employment Agreement) the Option shall fully vest (without regard to whether the
time vesting requirements in Section 2 have been met) and become exercisable
immediately, the restrictions thereon shall immediately lapse and you may
exercise the Option, to the extent not theretofore exercised, at any time during
the originally scheduled Option Term;

            (c) if your employment with the Company (or with any subsidiary
corporation of the Company if you are not employed by the Company at the time of
your termination) shall terminate by reason of your involuntary dismissal or
removal, other than an involuntary dismissal or removal for cause, the Option,
to the extent not theretofore exercised, shall fully vest (without regard to
whether the time vesting requirements in Section 2 have been met) and become
exercisable immediately, the restrictions thereon shall immediately lapse and
shall remain exercisable for its originally scheduled Option Term. For this
purpose, the term "for cause" means the definition of "Cause" in the Employment
Agreement and your involuntary dismissal or removal other than for Cause shall
include a termination by you for Good Reason as defined in Section 4(c)(iv) of
the Employment Agreement; and

            (d) if your employment with the Company (or any subsidiary
corporation of the Company if you are not employed by the Company at the time of
your termination) ceases following the expiration of the Term, as defined in the
Employment Agreement, the Option shall fully vest (without regard to whether the
time vesting requirements in Section 2 have been met) and become exercisable
immediately and shall remain exercisable for the original Option Term.

            In respect of any portion of the Option that constitutes an
Incentive Stock Option, for purposes hereof, an employment relationship shall be
deemed to exist between an individual and a corporation if at the time of the
determination, the individual is an employee for purposes of Section 422 of the
Code. If an individual is on military, sick or other bona fide leave of absence,
such individual shall be considered an "employee" and shall be entitled to
exercise the Option during such leave; provided that the period of such leave
does not exceed ninety (90) days or, if longer, that the individual's right to
reemployment by the Company or any subsidiary corporation of the Company is
guaranteed either by statute or by contract. Where the period of leave is longer
than ninety (90) days and where the individual's right to reemployment is not
guaranteed either by statute or by contract, the employment relationship shall
be deemed, for this purpose, to have terminated on the ninety-first (91st) day
of such leave.

            Subject to the terms of the Employment Agreement, termination of
employment shall be deemed not to occur by reason of your transfer from
employment by the Company to employment by a subsidiary corporation of the
Company or from employment by a subsidiary corporation of the Company to
employment by the Company or by another subsidiary corporation of the Company.

            In the event of the complete liquidation or dissolution of a
subsidiary corporation of the Company, or in the event such corporation ceases
to be a subsidiary corporation of the Company, any unexercised Options
theretofore granted to any employee of such subsidiary corporation shall,
subject to the next following sentence, be cancelled, unless such employee is
employed by the Company or by another subsidiary corporation of the Company
after the occurrence of such event. Thirty (30) days prior to any cancellation
of an Option pursuant to the previous sentence, notice shall be given to each
employee holding an Option subject to cancellation and such employee shall have
the right to exercise such Option in full (without regard to the restrictions on
exercise described in Section 2 of this Stock Option Agreement) for thirty (30)
days following the receipt of such notice. Notwithstanding the foregoing
provisions of this paragraph, in the event of such liquidation or dissolution of
a subsidiary corporation of the Company or in the event of such subsidiary
corporation ceasing to be a subsidiary corporation of the Company, the Board of
Directors or the Committee, in its discretion, may elect to terminate any
unexecuted Options theretofore granted to any employee of such subsidiary
corporation within a specified number of days after notice to the holder of the
Option and provide for such holder to receive, with respect to each Option
Share, cash in an amount equal to the excess of the fair market value of the
Option Share immediately prior to the date of such liquidation, dissolution or
cessation over the Exercise Price.

      5.    Transferability

            All or any portion of the Option that constitutes an Incentive Stock
Option is not transferable by you otherwise than by will or the laws of descent
and distribution and is exercisable, during your lifetime, only by you or, if
you are disabled (within the meaning of Section 22(e)(3) of the Code), by your
guardian or legal representative. Any portion of the Option that does not
constitute an Incentive Stock Option is transferable only (i) as provided in the
preceding sentence or (ii) to your immediate family members, trusts for their
exclusive benefit or partnerships of which such family members are the only
partners. Except as set forth in the preceding sentences, the Option may not be
assigned, transferred, pledged or hypothecated in any way (whether by operation
of law or otherwise) and shall not be subject to execution, attachment or
similar proceedings. Any attempted assignment, transfer, pledge, hypothecation
or other disposition of the Option contrary to the provisions hereof or of the
Plan, and the levy of any attachment or similar proceeding upon the Option,
shall be null and void and without effect.

      6.    Reservation, Registration, Issuance of Certificates, Legends,
            Payment of Expenses

            (a) Reservation, Registration and Listing of Shares. The Company
shall at all times reserve out of its authorized and unissued shares, a number
of shares sufficient to provide for the exercise in full of this Option. Shares
deliverable to you upon exercise of this Option, when delivered to you, shall be
fully paid and nonassessable and shall be free and clear of any and all liens,
encumbrances, charges and other third party rights. The Company agrees that all
shares delivered hereunder shall be (i) validly issued, (ii) registered for
resale by you (or a permitted transferee) under Federal and state securities
laws and shall remain registered so long as the shares may not be freely sold in
the absence of such registration and (iii) listed, or otherwise qualified, for
trading in the United States on each national securities exchange or national
securities market system on which the shares are listed or qualified. Except as
provided herein or by the Plan, the Employment Agreement or applicable law, this
Option may not be cancelled for any reason without your prior written consent.

            (b) The Company shall pay all issue or transfer taxes imposed upon
the issuance or transfer of the Option Shares, as well as all fees and expenses
incurred by the Company in connection with such issuance or transfer, including,
without limitation, all fees and expenses that may be necessitated by the filing
or amending of a registration statement under any Federal or state securities
law.

            (c) Securities Law Restrictions. Regardless of whether the offering
and sale of Shares under the Plan have been registered under the Securities Act
of 1933, as amended (the "Securities Act"), or have been registered or qualified
under the securities laws of any state, the Company may impose restrictions upon
the sale, pledge or other transfer of such Shares (including the placement of
appropriate legends on stock certificates or the imposition of stop-transfer
instructions) if, in the reasonable judgment of the Company's counsel, such
restrictions are necessary in order to achieve compliance with the Securities
Act or the securities laws of any state or any other law. In the event of any
such restriction, the Company shall take all such action as may be necessary or
appropriate to eliminate such restriction at the earliest possible date.

      7.    Withholding Taxes

            The Company's obligations to deliver Option Shares upon the exercise
of the Option shall be subject to your satisfaction of all applicable Federal,
state and local income, excise and employment tax withholding requirements ("Tax
Obligations"). Withholdings shall be calculated at the minimum statutory rate.
You may satisfy any such Tax Obligations (a) by payment of the applicable tax in
cash to the Company, (b) by authorizing the Company to withhold Option Shares
that would otherwise have been delivered to you having a fair market value as
defined in the Employment Agreement equal to, but not greater than, the minimum
amount of tax required to be withheld; or (c) by any combination of (a) and (b).

      8. Entire Agreement, Grant Subject to Plan; Conflict

            Except for the Employment Agreement, this Stock Option Agreement
constitutes the entire agreement of the parties with respect to the subject
matter hereof and shall supersede all prior agreements, whether written or oral,
with respect thereto. This Stock Option Agreement is subject to all of the
terms, conditions, limitations and restrictions contained in the Plan. In the
event of any conflict or inconsistency between the terms hereof and the terms of
the Plan, the terms of the Plan shall be controlling except in the event of any
conflict or inconsistency between the terms of the Plan and the terms of the
Employment Agreement, in which case the terms of the Employment Agreement shall
be controlling.

      9.    Miscellaneous

            (a) This Stock Option Agreement is not a contract of employment and
the terms of your employment shall not be affected hereby or by any agreement
referred to herein, except to the extent specifically so provided herein or
therein. Nothing herein shall be construed to impose any obligation on (i) the
Company or on any subsidiary corporation of the Company to continue your
employment or (ii) you to remain in the employ of the Company or of any
subsidiary corporation of the Company.

            (b) In respect of any portion of the Option that constitutes an
Incentive Stock Option, you hereby agree to notify the Company immediately upon
any "disqualifying disposition" (as defined in Section 421(b) of the Code) by
you of any Option Shares.

            (c) Neither you nor your permitted transferees, under Section 5 of
this Stock Option Agreement, shall have the right to act as stockholders of the
Company with respect to Option Shares, until the Exercise Price for such Option
Shares has been paid in full to the Company.

            (d) You represent that you have had ample opportunity to review the
Plan and ask questions with respect thereto.

            (e) You and the Company hereby agree that, to the extent applicable,
this Stock Option Agreement shall be interpreted in accordance with Section 409A
of the Code and the provisions of Section 20 of the Employment Agreement
regarding Section 409A shall, to the extent applicable, be applied to this Stock
Option Agreement.

            (f) This Stock Option Agreement shall be governed by and construed
in accordance with the laws of Delaware, without reference to principles of
conflict of laws.

            (g) Any disputes arising out of or relating to this Stock Option
Agreement shall be resolved in accordance with Section 10 of the Employment
Agreement, which shall be deemed to be incorporated herein in full.

            (h) No provision of this Agreement may be amended or modified except
in writing signed by you and an authorized officer of the Company. No waiver of
any breach or condition of this Stock Option Agreement by either party shall be
deemed to be a waiver of any other or subsequent breach or condition whether of
like or different nature. Any waiver must be in writing and signed by the party
against whom the waiver is being enforced (either you or an authorized officer
of the Company, as the case may be).

            (i) Except as otherwise expressly set forth in this Stock Option
Agreement or the Employment Agreement, the respective rights and obligations of
you and the Company hereunder shall survive any termination of your employment.

            (j) The Company represents and warrants to you that (i) all
corporate action required to be taken by the Company to fully authorize the
execution, delivery and performance of this Stock Option Agreement and the
consummation of the transactions contemplated hereby (including, without any
limitation, any action required to be taken by the Board of Directors, any
committee of the Board of Directors, or any other person or body to interpret or
otherwise act with respect to any Company agreement, policy, program or
arrangement) has been duly and effectively taken, (ii) the execution, delivery
and performance of this Stock Option Agreement does not violate any applicable
law, regulation, order, judgment or decree or any agreement, arrangement, plan
or corporate governance document to which the Company is a party or by which it
is bound, (iii) the person signing this Stock Option Agreement on behalf of the
Company is duly authorized to do so and (iv) upon the execution and delivery of
this Stock Option Agreement by the parties, it shall be a valid and binding
obligation of the Company, enforceable against it in accordance with its terms,
except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally.

<PAGE>

      Your acceptance of the Option shall constitute your agreement to all of
the terms and conditions of this Stock Option Agreement, the Option and the
Plan.

                                    Very truly yours,

                                    SIX FLAGS, INC.

                                    By: /s/ Harvey Weinstein
                                      --------------------------------
                                      Harvey Weinstein
                                      Chairman of the Compensation
                                      Committee

AGREED AND ACCEPTED:

By: /s/ Mark Shapiro
   ------------------------------
   Mark Shapiro

Enclosures

<PAGE>

                                                                      Schedule A

                                FORM OF EXERCISE

                                                [Date of Exercise]

Six Flags, Inc.
11501 Northeast Expressway
Oklahoma City, Oklahoma  73131
Attention:   Secretary

                  Re:   Six Flags, Inc. (the "Company") 2001 Stock Option and
                        Incentive Plan (the "Plan")

Dear Sir:

      Pursuant to the "Grant of Noncontingent Stock Option" from the Company to
me, dated as of January 11, 2006 (the "Stock Option Agreement"), I am the holder
of an Option granted under the Plan to purchase shares of the Company's common
stock (the "Option Shares"). All capitalized terms not defined herein shall have
the meaning ascribed to such terms in the Stock Option Agreement subject to the
provisions of the Plan and the Employment Agreement between me and the Company
dated September 26, 2006.

      On [a date not later than fifteen (15) days from the date hereof], I shall
exercise the Option to acquire [specify number of shares for which Option is
being exercised] Option Shares, the Exercise Price for which is $9.21, to be
paid by [specify the amount of a check, the number of shares of the Company's
common stock and/or the surrender of all or part of the Option to pay the
Exercise Price]. I would like the Option Shares to be represented by [specify
number of certificates and number of shares represented by each certificate],
registered in [my name or other] and should be delivered [at the address
indicated below or specify other arrangements].

      To the extent such taxes are not otherwise taken care of by my payment of
cash to the Company or the withholding of Option Shares or otherwise, I hereby
authorize the Company to withhold from any cash compensation paid to me or on my
behalf, an amount sufficient to discharge any federal, state and local wage
withholding taxes imposed in connection with my exercise of the Option.
Withholdings shall be calculated at the minimum statutory rate. To the extent
such payment of taxes is not so taken care of, I agree that the Company may hold
the stock certificates for the Option Shares in an amount sufficient to satisfy
the withholding taxes as security for payment of such taxes.

      I agree to all the terms, conditions, limitations and restrictions
contained in the Plan and the Stock Option Agreement to the extent such terms,
conditions, limitations and restrictions are not in conflict or inconsistent
with the Employment Agreement, in which case the provisions of the Employment
Agreement shall be controlling.

      Please acknowledge receipt of this Notice of my exercise of my Option on
the attached copy of this letter.

                                          Very truly yours,

                                          By:
                                             ----------------------------
                                          Name:
                                          Address:

RECEIPT ACKNOWLEDGED:

SIX FLAGS, INC.

By:
   ------------------------------
Name:
Title:Exhibit 10.1

                                    MORTGAGE

                                      FROM

                      RONSON CONSUMER PRODUCTS CORPORATION

                                       TO

                                 NORTH FORK BANK

                            Dated: September 27, 2006

RECORD AND RETURN TO:
---------------------

Matthew I. Kane, Esq.
Schwartz Simon Edelstein Celso & Kessler LLP
10 James Street
Florham Park, New Jersey  07932

<PAGE>
                                                                    Page 6 of 32

                                    MORTGAGE
                                    --------

         This Mortgage  ("Mortgage") is made on the 27th day of September,  2006
by Ronson Consumer Products  Corporation,  a New Jersey  corporation,  having an
address of 580 Howard Avenue, Somerset, New Jersey 08875 (the "Mortgagor"),

         AND NORTH FORK BANK,  a banking  corporation  of the State of New York,
having offices at 275 Broadhollow Road, Melville, New York 11747 ("Mortgagee");

         Background.  This  Mortgage  secures  various  Obligations  (as defined
         ----------
below) including,  without  limitation,  a loan by Mortgagee to Mortgagor in the
original  principal  amount of Two  Million  Two  Hundred  Thousand  and  00/100
($2,200,000.00)  Dollars,  plus interest thereon, as evidenced by the Note dated
the date hereof.  In consideration of the  above-referenced  loan and other good
and valuable consideration,  receipt of which is hereby acknowledged,  Mortgagor
agrees as follows:

                   SECTION 1 - DEFINITIONS AND INTERPRETATIONS
                   -------------------------------------------

         The definitions of the capitalized  terms used in this Mortgage and the
Note are set  forth in the body of this  Mortgage  and in  Appendix  A  attached
                                                           -----------
hereto and incorporated herein in its entirety.

                           SECTION 2 - GRANTING CLAUSE
                           ---------------------------

         To secure the observance,  payment and performance of all  Obligations,
Mortgagor  hereby  mortgages,  grants a security  interest  in,  and  absolutely
assigns all rents,  profits,  leases,  income and  proceeds  arising  from,  the
Mortgaged  Property  to  Mortgagee  and to  Mortgagee's  successors  and assigns
forever.  These grants are, however,  made upon the express condition that after
all  Obligations  are  paid  and  performed  in  full,  this  Mortgage  shall be
discharged by Mortgagee upon Mortgagor's request.

                         SECTION 3 - MORTGAGED PROPERTY
                         ------------------------------

         The "Mortgaged  Property"  consists of the Land, the Improvements,  the
Fixtures,  all Leases and Rents, all Awards and Proceeds,  all Other Rights, and
all present and future estate,  right,  title,  interest,  property,  possessory
interest and claims  whatsoever  in law as well as in equity of Mortgagor or any
other owner in and to the Land, Improvements and Fixtures and Rights.

                           SECTION 4 - REPRESENTATIONS
                           ---------------------------

         Mortgagor,  knowing and  agreeing  that  Mortgagee  shall rely  hereon,
hereby represents and warrants to Mortgagee that:

         4.1 Warranty of Title.  Mortgagor  holds good and marketable  title,(in
             -----------------
the case of any real property  interest) in fee simple to the Mortgaged Property
free  of all  liens,  restrictions,  taxes  and  encumbrances,  other  than  any
Permitted  Encumbrances,  and will warrant and forever defend that title and the
enforceability and priority of all liens created under this Mortgage

<PAGE>
                                                                    Page 7 of 32

against all claims whatsoever, except for Permitted Encumbrances, at Mortgagor's
sole expense.

         4.2 Valid Obligations. This Mortgage and the Note are valid and binding
             -----------------
obligations  of  Mortgagor,  enforceable  in accordance  with their terms.  This
Mortgage  constitutes  a valid first  priority  mortgage  lien on, and  absolute
assignment of Leases and Rents, and security interest in the Mortgaged Property,
subject to any Permitted Encumbrances.

         4.3 Existence and Authority.  Mortgagor is a duly organized and validly
             -----------------------
existing corporation in the State of New Jersey, and such corporation that is in
good  standing  under the laws of the State of New  Jersey.  Mortgagor  has full
power,  authority  and license to enter into and perform  this  Mortgage and the
other Loan Documents to which Mortgagor is a party and Mortgagor has full power,
authority and license to own and operate the  Mortgaged  Property and to conduct
its  business as now being  conducted.  Mortgagor  has  obtained  all  necessary
consents,  authorizations,  permits,  licenses  and  approvals  required  before
Mortgagor  may execute  and  deliver  this  Mortgage  and operate the  Mortgaged
Property.

         4.4 No  Conflicts.  The  execution,  delivery and  performance  of this
             -------------
Mortgage and other Loan Documents by Mortgagor  will violate no charter,  bylaw,
lease, indenture,  agreement,  instrument, law, ordinance,  regulation, order or
administrative  ruling to which  Mortgagor is subject or a party or that affects
or relates to the Mortgaged Property.

         4.5 Proceedings. Except as has been accurately and completely described
             -----------
in writing in the  Affidavit of Title,  or as otherwise  disclosed to Mortgagee,
there is no action, application,  petition, proceeding or hearing pending or, to
the  best of  Mortgagor's  knowledge,  threatened  against  any  Obligor  or the
Mortgaged  Property  that might (a) adversely  affect any  Obligor's  ability to
perform the Mortgage or any other Loan Document,  (b) involve the possibility of
any material adverse change in any Obligor's economic  condition,  (c) relate to
any land use variance,  subdivision,  zoning or other  matters,  (d) involve the
possibility of any limitation on any intended uses of the Mortgaged  Property or
(e) impair the lien or security of this  Mortgage or the value of the  Mortgaged
Property.

         4.6 Compliance  with Laws.  Mortgagor and the Mortgaged  Property is in
             ---------------------
compliance with all laws, regulations,  ordinances and codes that are applicable
to  the  use  and  operation  of  the  Mortgaged  Property,  including,  without
limitation,  all Environmental Laws. All present and planned uses and tenants of
the  Mortgaged   Property  are  in  full  compliance  with  applicable   zoning,
environmental and building laws,  ordinances,  regulations and codes.  Mortgagor
and all tenants of the  Mortgaged  Property have  obtained all  certificates  of
occupancy and building and other permits that are required for all intended uses
of, and for any  construction,  renovations  and  repairs  with  respect to, the
Mortgaged Property.

         4.7  Condition  of Property.  The  Mortgaged  Property is  structurally
              ----------------------
sound, in good condition and suitable for its intended use.

         4.8  Taxes.  All  property  taxes  and  assessments  due and  owing  in
              -----
connection  with the Mortgaged  Property have been paid in full through the

<PAGE>
                                                                    Page 8 of 32

date of this  Mortgage,  including any  penalties,  deficiency  assessments  and
interest.  Mortgagor has filed all tax returns and reports  required to be filed
by it and has  paid  all  taxes  that are due and  owing,  including  penalties,
deficiency assessments and interest.

         4.9   Financial    Information    and   Condition.    All   statements,
               -------------------------------------------
representations  and  warranties  made by or on behalf of Mortgagor to Mortgagee
have been, and as of the date of the Mortgage are,  accurate and complete and no
information has been omitted that would, in light of the  circumstances in which
made, make any of them misleading or incomplete.  Immediately prior to and after
the making of, this  Mortgage,  Mortgagor was not, nor will be,  "insolvent"  as
that term is defined in N.J.S.A. 14a:1-2(K) OR 11 U.S.C.A. 101(31).

         4.10     Intentionally omitted.

         4.11 Survival. All representations and warranties made by, or on behalf
              --------
of,  Mortgagor in this Mortgage or otherwise made to Mortgagee shall survive the
closing of this Mortgage and any independent investigation by Mortgagee.

         4.12 Purpose of Loan. The proceeds of the Loan shall be used solely for
              ---------------
the purpose of application against the outstanding balance under the CIT line of
credit.

                        SECTION 5 - MORTGAGOR'S COVENANTS
                        ---------------------------------

         Mortgagor covenants and agrees that it shall do all of the following:

         5.1  Obligations.  Pay all  indebtedness,  and  abide by all  terms and
              -----------
conditions,  under all Obligations,  including without  limitation this Mortgage
and the Note;

         5.2  Escrow  Account.  At the  time of  each  monthly  payment,  pay to
              ---------------
Mortgagee  (a) the sum  equal to  one-twelfth  (1/12th)  of the known (of if not
known,  estimated by Mortgagee) annual real estate taxes and assessments  levied
or to be levied against the premises by governmental entities and (b) such sums,
if required by Mortgagee,  as are necessary to assure the timely  payment of all
charges  described in Section 6 below, to be held by Mortgagee in a non-interest
bearing  account  and  applied  by  Mortgagee  to the  payment  of  such  taxes,
assessments  and other  charges when due. If the total of such monthly  payments
shall exceed the amounts  actually paid by Mortgagee for taxes,  assessments and
other  charges,  as the case may be, such excess shall be credited on subsequent
monthly  payments of the same nature;  but if the total of such monthly payments
shall be insufficient to pay taxes, assessments and other charges when due, then
Mortgagor shall pay to Mortgagee, on demand, any amount necessary to make up the
deficiency.  Notwithstanding  the foregoing,  upon the occurrence of an Event of
Default, Mortgagee may apply all sums in said escrow account to the reduction of
the Obligations;

         In addition,  if property is in a flood zone over the life of the loan,
additional escrow monies will be held for flood insurance.

<PAGE>
                                                                    Page 9 of 32

         5.3  Financial  Reporting.  Bank may  further  request  at  their  sole
              --------------------
discretion from Borrower and Guarantors the following:

               a.   Annual  audit  report  for  financial  statements  of Ronson
                    Corporation  on a  consolidated  basis  within  90  days  of
                    year-end  and on a  consolidating  basis  within 120 days of
                    year-end;
               b.   Promptly  after  filing  thereof  with  the  Securities  and
                    Exchange   Commission,   quarterly  10Q  reports  of  Ronson
                    Corporation;  and financial statements on a consolidated and
                    consolidating basis within 45 days of quarter end; and
               c.   Quarterly  statement  from Borrower that it is in compliance
                    with the terms of the loan agreement  with CIT  Corporation,
                    in form reasonably satisfactory to Mortgagee.

               In the event  the form and  substance  of each item  above is not
reasonably acceptable to the Bank, after the expiration of all applicable notice
and cure periods, Mortgagee may declare an Event of Default under this Mortgage.

         5.4 Use of Property.  Make or permit no use of the  Mortgaged  Property
             ---------------
other than as a packaging plant and related uses.

         5.5  Condition  of  Property.  Prevent  any waste  with  respect to the
              -----------------------
Mortgaged Property,  keep the Mortgaged Property in good and clean condition and
make all repairs that are either  required in the ordinary course of business to
operate  the  Mortgaged  Property  or that are  requested  by  Mortgagee  in its
reasonable discretion.

         5.6  Alterations.  Make no  material  change to or  renovation  of, nor
              -----------
remove, any material  Improvements or Fixtures without the express prior written
consent  of  Mortgagee  which  consent  shall  not  be  unreasonably   withheld,
conditioned,   or  delayed;   provided  however  that  any  such  non-structural
alterations costing less than $20,000 shall not require Mortgagee's consent. All
changes,  renovations,  removals  and  repairs  shall  be  made  in a  good  and
workmanlike manner to the reasonable satisfaction of Mortgagee and in accordance
with all applicable building and zoning laws.

         5.7 Notice of Loss or  Condemnation.  Notify  Mortgagee  immediately in
             -------------------------------
writing upon  learning  that (a) there may be any casualty on, or loss to or of,
any Mortgaged  Property or (b)  condemnation  proceedings  have  commenced  with
respect to the Mortgaged Property.

         5.8 Inspections. At any time during regular business hours and as often
             -----------
as requested,  and at no cost to Borrower,  permit  Mortgagee and its agents and
employees to examine, audit and make copies and abstracts from any and all books
and records of Mortgagor, and to visit and inspect the Mortgaged Property.

         5.9 Compliance With Laws. Comply with all laws, ordinances, regulations
             --------------------
and restrictions affecting the Mortgaged Property.

         5.10 Transfers or Liens.  Without the express prior written  consent of
              ------------------
Mortgagee  in its  absolute  discretion,  make  or  permit  no  Transfer  in the
ownership or control of the Mortgaged Property

<PAGE>
                                                                   Page 10 of 32

         5.11 Preservation. Preserve and maintain all authorizations,  consents,
              ------------
licenses,  permits,  registrations and qualifications that are necessary for the
transaction of business and the operation of the Mortgaged Property.

         5.12 Indemnification.  Except for acts of omission or commission by the
              ---------------
Mortgagee,  indemnify,  defend (with counsel reasonably acceptable to Mortgagee)
and hold harmless Mortgagee (including Mortgagee's agents,  employees,  officers
and directors) against all losses,  claims,  suits, fines, damages and expenses,
including reasonable  attorney's fees and disbursements,  incurred by reason of,
or in connection with, this Mortgage or the Mortgaged Property or in maintaining
Mortgagee's interest in the Mortgaged Property,  including,  without limitation,
all losses, claims, suits, fines, damages and expenses incurred by reason of, or
in  connection  with,  Mortgagor's  breach of any provision of Section 7 of this
Mortgage  or any  violation  of any  Environmental  Law of the Use of  Hazardous
Substances on the Mortgaged Property.

         5.13 Leasing Covenants.  As to all leases and rentals, comply with each
              -----------------
of the following:

         (a)  accept no  payments  more than 30 days in  advance of the due date
         under any leases relating to the Mortgaged Property; and

         (b) permit no use of the  Mortgaged  Property  that would  violate  any
         provision  of this  Mortgage,  including  all  provisions  relating  to
         environmental matters; and

         (c) abide by and  perform all duties of the  landlord  under any leases
         affecting the Mortgaged Property; and

         (d)  enter  into or agree  to enter  into no new  lease  or  modify  or
         terminate no lease  affecting the Mortgaged  Property,  except with the
         express  prior  written   approval  of  Mortgagee  in  its   reasonable
         discretion; and

         (e) any existing or future  lease,  or other  agreement  for the use or
         occupancy, of any Mortgaged Property shall provide that:

                  (i) it is subordinate  and subject in all respects to the lien
                  and  provisions of this  Mortgage  including all covenants and
                  restrictions  as to the use  and  condition  of the  Mortgaged
                  Property; and

                  (ii) all  representations  and  covenants as to  environmental
                  matters, including those set forth in Section 7, are to become
                  express  covenants  and   representations  of  the  tenant  or
                  occupant; and

                  (iii) copies of notices or letters asserting or discussing any
                  defaults on the part of the landlord  shall be  simultaneously
                  sent to Mortgagee  (attention:  Commercial Loan Department) by
                  certified mail; and

<PAGE>
                                                                   Page 11 of 32

                  (iv) within five (5) days of request by Mortgagee,  the lessee
                  or occupant will deliver to Mortgagee a notarized statement as
                  to the default status of any lease or occupancy  agreement and
                  execute any  document  requested  by Mortgagee to confirm that
                  any lease or occupancy agreement is subordinate and subject to
                  the lien and provisions of this Mortgage.

         5.14 Banking Relationship. Throughout the term of the Loan Borrower and
              --------------------
Guarantors maintain a satisfactory business deposit account with the Mortgagee.

         5.15 Prepayment.  Pay any prepayment penalties, if any, required by the
              ----------
Note.

                              SECTION 6 - INSURANCE
                              ---------------------

         6.1 Insurance  Coverage.  Mortgagor  shall keep the Mortgaged  Property
             -------------------
insured as follows:

         (a) Casualty  Insurance.  Maintain extended coverage casualty insurance
         written in the name of  Mortgagor  in the  broadest  "all  risks"  form
         available  on a full  replacement  cost basis  covering  all  Mortgaged
         Property, including all Improvements and Fixtures. That insurance shall
         be in  amounts  that are no less than the full  insurable  value of the
         Mortgaged Property (without any deduction for depreciation),  but in no
         event shall that coverage be less than the amount of the Note and shall
         be in amounts reasonably satisfactory of Mortgagee.

         (b)  Liability  Insurance.  Maintain  comprehensive  general  liability
         insurance in the name of Mortgagor,  including a contractual  liability
         endorsement and a completed  operations and personal  injury  coverage,
         with a  combined  single  limit  for any  one  occurrence  of at  least
         $1,500,000.

         (c) Flood  Insurance.  If any  portion  of the  Mortgaged  Property  is
         located in a flood hazard area for which  insurance is available  under
         the  Flood  Disaster  Protection  Act of  1973  or the  National  Flood
         Insurance Act of 1968,  maintain flood  insurance on that portion in an
         amount reasonably acceptable to Mortgagee over the life of the loan.

         (d) Boiler and machinery insurance in amounts reasonably  acceptable to
         Mortgagee.

         (e) Policy Terms. All policies shall meet the following requirements:

                  (i)  overall  blanket  or  excess  coverage  policies  may  be
                  supplied  provided,  however,  that all insurance  shall be in
                  amounts  sufficient  to  prevent  any  insured  from  being  a
                  co-insurer  and  that the  amount  of the  casualty  insurance
                  coverage attributable to the Mortgaged Property is clearly set
                  forth; and

                  (ii) all policies shall (i) name Mortgagee "and its successors
                  and  assigns as their  interests  may  appear"  as  "mortgagee
                  insured"  and "loss payee" on all  casualty  insurance  and as
                  "additional

<PAGE>
                                                                   Page 12 of 32

                  insured"  as  to  all  other   insurance,   (ii)   contain  an
                  endorsement  stating  that,  as to the interest of  Mortgagee,
                  such policy "shall not be impaired, invalidated or affected by
                  any  statement,  act or neglect of any insured,  loss payee or
                  other  Person,  or by any  failure  to make any  report to the
                  insurer,  or by the  institution  of any proceeding to execute
                  upon any lien",  and (iii)  contain a provision  stating  that
                  such policy  "shall not be cancelled or modified  except after
                  thirty (30) days prior written  notice  delivered to Mortgagee
                  (attn:  Commercial Mortgage Department) at Mortgagee's address
                  first listed above or as  subsequently  directed in writing by
                  Mortgagee; and

                  (iii) all policies shall be in a form reasonably acceptable to
                  Mortgagee and shall be issued by  financially  sound  insurers
                  duly licensed and authorized to conduct that type of insurance
                  business in New Jersey; and

                  (iv) certificates in evidence of all policies of insurance and
                  endorsements thereof,  together with a paid receipt,  shall be
                  deposited  with  Mortgagee   prior  to  the  closing  of  this
                  Mortgage. At least thirty (30) days prior to the expiration of
                  any such policies,  Mortgagee  shall furnish paid receipts and
                  other  evidence   satisfactory  to  Mortgagee  that  all  such
                  policies have been renewed or replaced; and

                  (v) all policies shall provide that the insurance proceeds and
                  awards may be adjusted only after  obtaining the prior written
                  consent of Mortgagee  and shall be paid  directly to Mortgagee
                  to the extent required in Section 6.2.

         6.2 Insurance Proceeds. Mortgagee shall have the exclusive authority to
             ------------------
do each of the following in Mortgagee's absolute discretion:

                  (a) Receive directly all Awards and Proceeds;

                  (b) Settle or compromise all claims relating to all Awards and
         Proceeds; and

                  (c)  Determine  whether to apply any Awards  and  Proceeds  to
         reduce the Note or any other  Obligations  or to repair or replace  any
         Mortgaged  Property,  provided,  however,  that if (i) there has been a
         casualty  or  loss to or of  property  having  an  aggregate  value  of
         $250,000 or less,  (ii) there has been, and so long as there  continues
         to be, no Event of Default,  and (iii)  Mortgagor can  demonstrate,  to
         Mortgagee's  satisfaction,  that  Mortgagor  has  sufficient  available
         economic  resources  to  restore  the  Mortgaged  Property,   then,  at
         Mortgagor's  written  request  made  within 90 days of the  casualty or
         loss, the insurance proceeds will be released by Mortgagee to Mortgagor
         as  necessary  to restore or replace  the  damaged or lost  property in
         accordance  with  customary   construction   financing  procedures  and
         protections as determined by Mortgagee.

         Notwithstanding  anything  contained  in  this  Paragraph  6.2  to  the
contrary,  nothing  contained  herein  shall  supersede  any  Tenant's  right to

<PAGE>
                                                                   Page 13 of 32

reconstruct any improvements and receive the insurance proceeds as such right is
set forth in any Lease Agreement regarding the Mortgaged Property.

                        SECTION 7 - ENVIRONMENTAL MATTERS
                        ---------------------------------

         7.1  Environmental  Representations.  Mortgagor  hereby  represents and
              -------------  ---------------
warrants to Mortgagee to the best of its knowledge that:

         (a) Neither  Mortgagor  nor, to the best  knowledge of  Mortgagor,  any
         other existing or former  occupant of the Mortgaged  Property,  has, in
         each case except as set forth in the Environmental  Affidavit  executed
         by  Mortgagor  to  Mortgagee,  (i) Used  any  Hazardous  Substances  in
         violation of any Environmental Law, (ii) except as previously disclosed
         to  Mortgagee,  received  any  notice,  or is on notice,  of any claim,
         investigation,  cleanup or testing  program,  government  expenditures,
         litigation or administrative  proceeding,  actual or threatened, or any
         order,  writ or judgment  that relates to any Use of  pollutants of any
         kind,  including any Hazardous  Substances,  on, or by any occupant of,
         the Mortgaged Property.

         (b) No Hazardous  Substances  have been, or will be, Used on, or by any
         occupant of the  Mortgaged  Property in violation of any  Environmental
         Laws. All Standard  Industrial  Classification code numbers relating to
         any activities occurring after December 31, 1983 or any intended future
         activities, on the Mortgaged Property are as follows: 2865.

         (c) In connection with any acquisition, sale, closing, transfer, change
         in control or merger of Mortgagor,  any other occupant, owner or tenant
         of the Mortgaged  Property,  or the Mortgaged  Property  itself,  since
         December 31, 1983, ISRA has been complied with.

         (d) The Mortgaged  Property has been, and will not be, used as a "major
         facility", as that term is defined in N.J.S.A. 58:10-23.11(b)(1).

         (e) Within ninety (90) days from loan closing,  Mortgagor  must prepare
         and provide proof that a Remedial Action Report  pertaining to the tank
         removal and contaminated soil (referencing case#06-31-1023-11) has been
         submitted to the NJDEP for review and approval.

         (f) Within  240 days of loan  closing,  a Letter of No  Further  Action
         (referencing case#06-31-1023-11) from the NJDEP, pertaining to the tank
         removal and contaminated soil, needs to be provided to Bank.

         7.2 Restrictions on Hazardous Uses.  Without  Mortgagee's prior written
             ------------------------------
consent,  which may be granted  or  withheld  in  Mortgagee's  sole  discretion,
Mortgagor shall make or permit no use of the Mortgaged Property that would:

         (a) involve an industrial  establishment  having a Standard  Industrial
         Classification  code number other than Mortgagor's current code number;
         or

<PAGE>
                                                                   Page 14 of 32

         (b) involve the Use of any  Hazardous  Substances  in  violation of any
         Environmental Laws.

         7.3 Notice to Mortgagee.  Mortgagor shall notify Mortgagee  immediately
             -------------------
in writing upon learning of:

         (a) any spill,  discharge or release of any Hazardous  Substances on or
         near the Mortgaged Property in violation of any Environmental Laws.

         (b) any circumstances that may result in a violation of Section 7.2;

         (c) any  circumstances  or transactions  that would require  compliance
         with ISRA in connection with the Mortgaged Property; or

         (d)  any  governmental  inquiry  or  inspection  is  undertaken  or  an
         enforcement  notice  issued with respect to Hazardous  Substances on or
         Used  with  respect  to the  Mortgaged  Property  in  violation  of any
         Environmental Laws.

         7.4 Environmental Audits. If Mortgagee has reason to believe that there
             --------------------
are any  Hazardous  Substances  on the  Mortgaged  Property in  violation of any
Environmental  Laws  and/or that  Mortgagor  has  breached  any of the terms and
conditions  of this Section 7,  Mortgagee  may require that  Mortgagor  retain a
qualified  and licensed  environmental  audit of the Mortgaged  Property,  which
engineer  and  audit,  including  testing  and  sampling  procedures,  shall  be
reasonably  acceptable to Mortgagee and which audit report shall be delivered to
Mortgagee  within thirty (30) days of Mortgagee's  initial  request and shall be
prepared at Mortgagor's sole expense.

         7.5 Security for Cleanup. If any investigation, environmental report or
             --------------------
governmental investigation or order indicates that there may exist any damage or
risk to the Mortgaged  Property,  or any liability of any Mortgagor  relating to
any Hazardous  Substances or other environmental  conditions with respect to the
Mortgaged  Property,  Mortgagee may require Mortgagor to furnish  immediately an
indemnity bond in an amount determined by Mortgagee,  in its absolute reasonable
discretion,  to be sufficient to pay all actual and estimated  cleanup costs and
to  protect  against  any liens that may arise  with  respect to such  potential
cleanup costs. Mortgagee's demand that Mortgagor post any bond or other security
shall not be a waiver of any Event of  Default  or of any other  right or remedy
available to Mortgagee.

                          SECTION 8 - EVENTS OF DEFAULT
                          -----------------------------

         Any of the  following  events or  conditions  shall,  at the  option of
Mortgagee,  constitute  an "Event of Default"  under this Mortgage and the other
Loan Documents and  Obligations if not cured within the applicable  cure period,
if any, set forth below:

         8.1 Payments.  Any failure to make on its due date any payment required
             --------
to be made by Mortgagor under this Mortgage, the Note or any other Loan Document
or any Obligations  including but not limited to obligations by Mortgagee to the
CIT Group/Commercial  Services,  Inc. (and any applicable cure period as to such
payment  shall have expired  (without cure thereof)

<PAGE>
                                                                   Page 15 of 32

that entitles such lender to declare such  indebtedness due prior to the date of
maturity; or

         8.2  Other  Terms.  Any  failure  to  perform  or  observe  any term or
              ------------
condition (not otherwise recited under this Section 8) under this Mortgage,  the
Note or any other Loan Document or Obligations provided, however, that Mortgagor
may effect a complete cure under this Section 8.2 within thirty (30) days of the
occurrence  of the  Event of  Default  so long as (a) this  right to cure is not
exercised  more than one (1) time in any  consecutive  four (4) month period and
(b) in the  reasonable  judgment  of  Mortgagee  the  default  is curable in its
entirety  during that cure period;  provided,  however,  that if  Mortgagor  has
promptly and diligently  attempted to cure that default and has  demonstrated to
Mortgagee's reasonable  satisfaction that it is not susceptible cure during that
initial cure period,  Mortgagor shall be entitled to that additional period, not
to exceed thirty (30) days, as Mortgagor shall  reasonably need to complete that
cure; or

         8.3 Representations. Any representation,  statement or warranty made by
             ---------------
or on behalf of any  Obligor in this  Mortgage,  the  Affidavit  of Title or any
other Loan Document,  certificate or other writing made or given to Mortgagee at
any time shall be incorrect,  incomplete or misleading when made in any material
respect; or

         8.4 Failure to Obtain  Permission.  Mortgagor shall do, or permit to be
             -----------------------------
done, any act for which  Mortgagee's  consent is required under this Mortgage or
any other Loan Document without first obtaining such consent in writing; or

         8.5  Financial  Information  and  Inspections.  Any  failure to furnish
              ----------------------------------------
financial  information or to permit inspection of the Mortgaged  Property or any
records as required under this Mortgage or any other Loan Document; or

         8.6 Failure to Maintain Insurance.  Any failure to maintain, or provide
             -----------------------------
satisfactory evidence of, any insurance coverage required under this Mortgage or
any other Loan Document; or

         8.7 Lien Defaults or Foreclosures. Any default or modification (without
             -----------------------------
Mortgagee's  prior  written  consent)  shall  have  occurred  in  any  mortgage,
assignment,  encumbrance  or  agreement  constituting  a Permitted  Encumbrance,
securing an amount in excess of $100,000,  and any applicable  cure period as to
such default shall have expired without cure thereof,  or proceedings shall have
been  instituted  or actions taken for the  foreclosure  or  enforcement  of any
mortgage,  judgment,  assignment  or other  lien or  encumbrance  affecting  the
Mortgaged Property involving an amount in excess of $100,000; or

         8.8 Warrants and Tax Liens. Any warrant of attachment or for distraint,
             ----------------------
or notice of tax or other lien shall be issued relating to, or encumbering,  any
portion of the Mortgaged Property that is not discharged,  or stayed and bonded,
to the reasonable satisfaction of Mortgagee within thirty (30) days of entry; or

         8.9 Judgments.  Any judgment shall be entered  against  Mortgagor in an
             ---------
amount in excess of $100,000  that is not (a) within  thirty (30) days of

<PAGE>
                                                                   Page 16 of 32

entry,  discharged,  or stayed and bonded,  to the  reasonable  satisfaction  of
Mortgagee  or (b) fully  covered by  insurance  and the  insurance  company  has
unconditionally accepted liability for that judgment; or

         8.10 Loss of  Collateral.  There  occurs  any  casualty  on, or loss or
              -------------------
destruction of, any Mortgaged Property in an amount in excess of $100,000, or

         8.11 Hazardous Substances.  There occurs, or it is found that there has
              --------------------
previously  occurred,  any  Use of any  Hazardous  Substances  on the  Mortgaged
Property  or  by  Mortgagor;  in  violation  in  any  material  respect  of  any
Environmental Laws; or

         8.12  Insolvency.  Any filing of a petition  by or against  any Obligor
               ----------
under any  bankruptcy or  insolvency  law or an assignment by any Obligor of any
property or assets for the benefit of  creditors,  or the failure of any Obligor
to pay debts in the ordinary course as those debts become due, or the calling of
a  meeting  of  creditors  of  any  Obligor  to  obtain  any  general  financial
accommodation  provided,  however, that any Obligor shall have fifteen (15) days
to obtain a court order dismissing any bankruptcy or insolvency  proceeding that
is filed without consent of the debtor; or

         8.13 Seizure of Property.  Any seizure by governmental  authorities of,
              -------------------
or the imposition of legal restraints against, the Mortgaged Property,  which is
not, within thirty (30) days of such seizure or imposition, released, discharged
or fully bonded to the reasonable satisfaction of Mortgagee; or

         8.14  Non-Permitted  Encumbrance.   Any  mortgage,   assignment,  lien,
               --------------------------
judgment or interest shall encumber any Mortgaged Property with the exception of
any Permitted Encumbrances; or

         8.15  Default in Leases.  Any act or omission on the part of  Mortgagor
               -----------------
that results in the termination of the Lease by any Tenant; or

         8.16  Dissolution;  Death.  Any  Obligor  shall  fail to remain in good
               -------------------
standing in its state of  incorporation  or  organization  or dissolves,  or any
individual Obligor dies; or

         8.17  Material  Adverse  Change.  Any  Material  Adverse  Change in the
               -------------------------
creditworthiness  or financial  condition of any Obligor that, in the reasonable
opinion of Mortgagee, materially increases Mortgagee's risk; or

         8.18  Material  Default With Third Party.  A default under any material
               ----------------------------------
indebtedness in excess of $100,000 or other material  obligations of any Obligor
to any third party that entitles  such third party to declare such  indebtedness
or obligation due prior to its date of maturity; or

         8.19 [Intentionally Omitted].

         8.20 Debt  Service  Covenant.  This  Mortgage  is  subject to an annual
              -----------------------
testing  of  a  minimum  debt  service  coverage  ratio  of  1.25x  tested  on a
consolidated basis for Ronson Consumer Products Corporation,  Ronson Corporation
(including Ronson Aviation, Inc. and Ronson Canada Ltd.) as follows: (Net Profit
+  Depreciation  +  Amortization  +  Interest  Expense  +

<PAGE>
                                                                   Page 17 of 32

Income Tax  Expense -  Dividends/Distributions)  divided  by  (Annual  Principal
Payments + Capitalized  Lease Payments + Interest  Expense + Income Taxes Paid).
Capitalized  terms under this Section 8.20 not otherwise defined herein shall be
determined  in  accordance  with  generally   accepted   accounting   principles
consistently applied.  Borrower and Guarantors must submit a Covenant Compliance
Certificate  with  respect to each  fiscal year in whole or in part prior to the
satisfaction  of the Note annually with  submission of each Annual  Consolidated
Statement  under Section 5.3 hereof.  Failure of the Borrower and  Guarantors to
meet this covenant will be deemed an Event of Default.

                              SECTION 9 - REMEDIES
                              --------------------

         Upon the occurrence and continuation of an Event of Default, beyond any
applicable cure period Mortgagee may, at its option,  do any of the following in
any order at any time and in any combination:

         9.1  Acceleration of Obligations.  Declare all principal,  interest and
              ---------------------------
expenses  outstanding under the Note, this Mortgage and any other Obligations to
be immediately due and payable in full; or

         9.2  Foreclosure.  Institute  proceedings  to  foreclose  on all or any
              -----------
portion of the  Mortgaged  Property,  and  following  receipt  of a judgment  of
foreclose,  cause  the  sale  of  the  Mortgaged  Property  in  accordance  with
applicable law, in one or several parcels, at Mortgagee's option; or

         9.3  Receiver.  Obtain  the  appointment  of a  receiver  of the rents,
              --------
profits,  leases, income and refunds arising from the Mortgaged Property without
the necessity of providing  either the  inadequacy of the security or insolvency
of any Obligor, and each Obligor does hereby waive such proof and consent to the
appointment of a receiver; or

         9.4  Absolute   Assignment  of  Rents.  With  or  without   instituting
              --------------------------------
proceedings to foreclose on, or appoint a receiver for, the Mortgaged  Property,
revoke  Mortgagor's  license to collect  rents and exercise  all of  Mortgagee's
remedies under the Assignment of Rents and Leases from Mortgagor to Mortgagor of
even date,  including,  without  limitation,  the right to notify tenants of the
Mortgaged  Property to pay rents directly to Mortgagee,  take  possession of and
rent the Mortgaged  Property,  either in Mortgagee's  name or in the name of the
owner of such Mortgaged Property, receive and apply the rents and profits, after
the payment of any  collection,  operating and  management  expenses,  including
management  commissions and attorney's fees and disbursements,  against the Note
and other Obligations, being accountable only for the rents and profits that are
actually received by it while in possession; or

         9.5 UCC  Remedies.  Exercise  all rights and  remedies  available  to a
             -------------
secured  party under the New Jersey  Uniform  Commercial  Code as in effect from
time to time; or

         9.6 Collection  Action.  Institute a collection action directly against
             ------------------
any Obligor, either without acceleration for the balance of any Obligations then
past due or, following acceleration, for all Obligations; or

<PAGE>
                                                                   Page 18 of 32

         9.7 Intentionally Omitted.
             ---------------------

         9.8 Increase in Interest Rate.  Increase the rate of interest under any
             -------------------------
Obligation,  including, without limitation, the Note, to rate equal to three (3)
percentage  points (3%) above the rate of interest set forth in such Obligation.
This increase  shall be  retroactive  to the date of the first  occurrence of an
Event of Default,  shall be computed on the basis of actual days  elapsed over a
360-day year, and shall cease upon the cure of such Event of Default.

         9.9 Other  Remedies.  Exercise any other rights and remedies  available
             ---------------
under this Mortgage,  any other Loan Document,  Obligations or other document or
agreements of any kind, or that are available at law or in equity; or

         9.10 Proceeds.  Apply proceeds of any Mortgaged Property first to costs
              --------
and expenses of liquidation,  sale or collection,  including any attorneys' fees
and  disbursements  and then to  payment of any  Obligation  in  whatever  order
Mortgagee may, in its discretion, elect; or

         9.11 Expenses.  Collect all of the collection  expenses permitted under
              --------
Section 10 of this Mortgage or otherwise permitted under law and have the amount
of such  expenses,  together with all  prepayment  penalties due pursuant to the
Note,  which  penalties  shall be  computed  pursuant  to the terms  thereof and
treating  prepayment  as  occurring  on the  date of  default,  included  in any
judgment or decree obtained by Mortgagee, to the extent permitted by law.

         9.12   Waiver  of  Rights  to  Freeze   Accounts;   Waiver  of  Setoff.
                ---------------------------------------------------------------
Notwithstanding  any other provision to the contrary  contained herein or in the
Note or any other Loan Document,  Mortgagee  shall not (and by its acceptance of
the Note shall be deemed to acknowledge  that it shall not), at any time,  hold,
apply, freeze or set-off on account of any Obligations, (i) funds of any Obligor
on deposit with Mortgagee,  or any affiliate of Mortgagee,  in any account, fund
or certificate,  (ii) any present or future indebtedness that Mortgagee,  or any
affiliate of Mortgagee,  may owe to any Obligor,  or (iii) any other tangible or
intangible  property owned by any Obligor that may be in the possession or under
the control of Mortgagee, or any affiliate of Mortgagee.  Mortgagee acknowledges
and agrees that any other lender to any Obligor (including,  without limitation,
The CIT Group/Commercial  Services,  Inc.) shall be a third-party beneficiary of
the provisions of this Section 9.12, and  specifically  that CIT has relied upon
the waivers set forth herein in connection with its consent to the  transactions
contemplated hereby.

                        SECTION 10 - COLLECTION EXPENSES
                        --------------------------------

         If  Mortgagee  employs  counsel for advice or  representation  after an
Event of Default (whether or not formally  declared)  relating to the collection
or  enforcement  of this  Mortgage,  the Note,  or any other  Loan  Document  or
Obligations (whether or not suit is actually instituted),  Mortgagee may collect
from any Obligor all of Mortgagee's  reasonable  expenses and fees including (a)
all  reasonable  fees  and  disbursements  of  Mortgagee's  counsel  and (b) all
expenses of, or in anticipation  of,  litigation  including fees and expenses of
witnesses, experts,  stenographers,  title and lien searches and appraisals. All
those  collection fees and expenses shall be due

<PAGE>
                                                                   Page 19 of 32

and payable upon demand,  shall bear interest at the default rate in effect from
time to time  under  the Note  and  shall  become  Obligations  secured  by this
Mortgage and any other collateral that secures any Obligations.

                      SECTION 11 - MORTGAGEE'S PERFORMANCE
                      ------------------------------------

         If  Mortgagor  fails to perform  any duty or  obligation  imposed  upon
Mortgagor  under this Mortgage or any other Loan  Document  when due,  Mortgagee
may, at its option (with or without declaring an Event of Default),  perform any
such duty or obligation  including  payment of any tax,  governmental  charge or
insurance premium,  making repairs to the Mortgaged Property,  rendering it free
of any Hazardous  Substances or liens or performing  any lease  obligation.  The
expenses  incurred by Mortgagee in performing any of the  Mortgagor's  duties or
obligations  shall be added to the monies owing under the Note, with interest at
the rate in effect  from time to time  under the Note,  and shall be  secured by
this Mortgage and by all collateral given to secure any Obligations.  Any action
taken by Mortgagee pursuant to this Section shall not constitute a waiver of any
Event of Default or an undertaking to perform or complete any of the Mortgagor's
duties,  nor shall it impose any  responsibility  on Mortgagee to perform any of
Mortgagor's duties in the future.

                         SECTION 12 - SECURITY AGREEMENT
                         -------------------------------

         Mortgagor  hereby  grants  Mortgagee  a  security  interest,  under the
Uniform  Commercial  Code as enacted in the State of New  Jersey,  in all of the
Mortgagor's right, title and interest in and to all existing and future-acquired
Fixtures,  Awards and Proceeds,  Leases and Rents, Other Rights, and all tax and
insurance  escrows  held by  Mortgagee  pursuant to this  Mortgage.  In order to
perfect the security  interests granted  hereunder,  Mortgagor,  as debtor,  has
executed  UCC-1  financing  statements in favor of Mortgagee,  as secured party,
which  statements  shall be filed with all  appropriate  county and state filing
offices.

              SECTION 13 - ABSOLUTE ASSIGNMENT OF LEASES AND RENTS
              ----------------------------------------------------

         This Mortgage also serves as an absolute assignment of all existing and
future rentals,  leases, profits, income, revenues and proceeds arising from the
Mortgaged  Property as  provided  and set forth in the  Assignment  of Rents and
Leases from Mortgagor to Mortgagor of even date, provided, however, that so long
as there is no Event of Default,  Mortgagor shall be granted a revocable license
from  Mortgagee to remain in possession  of, and to collect all rentals  arising
from,  the  Mortgaged  Property.  This  assignment  shall not,  however,  render
Mortgagee responsible for the performance of any duties under any lease, nor for
any  negligence in the  management,  operation or  maintenance  of the Mortgaged
Property or for any resulting damage,  loss or injury.  The receipt by Mortgagee
of any rentals or profits  pursuant to this assignment  shall not cure any Event
of Default or affect any foreclosure or other liquidation proceeding that may be
pending  at  any  time.  Mortgagor  hereby  irrevocably  appoints  Mortgagee  as
Mortgagor's attorney-in-fact to exercise all rights and remedies of Mortgagor as
landlord and manager of the Mortgaged Property.

<PAGE>
                                                                   Page 20 of 32

                           SECTION 14 - MODIFICATIONS
                           --------------------------

         This Mortgage is subject to  Modification.  To the extent  permitted by
law,  this  Mortgage  secures  all  Modifications  from the date upon which this
Mortgage was  originally  recorded,  including  future loans and  extensions  of
credit and changes in the  interest  rate,  due date,  amount or other terms and
conditions of any Obligations.

                           SECTION 15 - MISCELLANEOUS
                           --------------------------

         15.1 Further Assurances;  Corrections. Mortgagor shall, within five (5)
              --------------------------------
days of Mortgagee's  request,  execute any documents,  provide any lien or other
searches,  and do anything that Mortgagee  determines to be reasonably necessary
to  establish,  perfect,  assure or maintain the existence  and  priorities  of,
Mortgage.

         15.2  Notices.  All  notices,  demands,  requests,  consents  and other
               -------
communications  shall be in writing and served by hand  delivery,  by  certified
mail, return receipt requested,  or by a recognized  overnight delivery service,
to the  addresses  set forth in the  caption  of this  Mortgage,  unless  proper
written  notice  has been given to all other  parties of any change in  address.
Notices and other  written  communication  shall be deemed to have been properly
served upon  delivery to the  designated  address  provided,  however,  that any
notice or other  communication sent by certified mail, return receipt requested,
shall be deemed to have been  properly  served on the third  business  day after
mailing, regardless of when it is actually received.

         15.3 No Jury  Trial.  MORTGAGOR  HEREBY  WAIVES  ANY RIGHT TO REQUEST A
              --------------
TRIAL BY JURY IN ANY  LITIGATION  WITH RESPECT TO ANY ASPECT OF THIS MORTGAGE OR
ANY OTHER LOAN DOCUMENT AND REPRESENTS THAT MORTGAGOR HAS CONSULTED WITH COUNSEL
SPECIFICALLY  AS TO THIS WAIVER.  BY ACCEPTING  THIS  MORTGAGE,  MORTGAGEE  ALSO
WAIVES ITS RIGHT TO REQUEST A TRIAL BY JURY.

         15.4 No  Waivers.  Mortgagee  shall not be deemed to have waived any of
              -----------
its rights or remedies under this Mortgage or any other Loan Document by:

         (a) forbearing or failing to exercise,  or delaying in exercising,  any
         rights and remedies; or

         (b)  forbearing  or failing to insist  upon,  or delaying in  insisting
         upon, the strict  performance of any term or condition of this Mortgage
         or any other Loan Document;

         (c)  granting  any  extension,  modification  or  waiver of any term or
         condition of this  Mortgage or any other Loan  Document,  except to the
         extent expressly  provided in any written extension,  modification,  or
         waiver; or

         (d) any other act,  omission,  forbearance  or delay by Mortgagee,  its
         officers, agents, servants or employees; or

         (e) any waiver of any rights or remedies on any one occasion.

<PAGE>
                                                                   Page 21 of 32

         15.5 Collection Duties.  Mortgagee shall be under no duty or obligation
              -----------------
to:

         (a)  preserve,  protect  or marshal  any  Mortgaged  Property  or other
         collateral for any Obligations; or

         (b) preserve or protect any rights in any  Mortgaged  Property or other
         Collateral  against any person claiming an interest  adverse to that of
         any Mortgagor or other Obligor; or

         (c) realize  upon any  Mortgaged  Property or other  collateral  in any
         particular  order or manner or seek repayment of any  Obligations  from
         any particular source.

         15.6 Waiver of Defense.  Mortgagor  hereby  waives any defense based on
              -----------------
the  failure to name any  tenant or  occupant  of the  Mortgaged  Property  as a
defendant in any  foreclosure  action or other  litigation  with respect to this
Mortgage.

         15.7  Written  Changes  Only.  No  change,   extension,   modification,
               ----------------------
amendment or waiver of any term or condition of this  Mortgage or any other Loan
Document shall be valid or binding upon  Mortgagee,  unless it is in writing and
has been executed by duly authorized officer of Mortgagee.

         15.8 Correction of Documents. If any Loan Documents contain an error or
              -----------------------
incorrect  terms or were  improperly  prepared  or  executed,  or if a  document
intended to constitute  part of the Loan  Documents was  inadvertently  omitted,
then in each such case Mortgagor agrees to execute property documents promptly.

         15.9  Successors  and  Assigns.  This  Mortgage  shall be binding  upon
               ------------------------
Mortgagor and its successors and assigns, and inure to the benefit of Mortgagee,
and its successors and assigns.

         15.10 New Jersey Law and  Jurisdiction.  All terms of this Mortgage and
               --------------------------------
the other Loan  Documents  shall be governed by and  construed  according to the
laws  of  the  State  of New  Jersey.  Mortgagor  hereby  consents  to  personal
jurisdiction  in the State of New Jersey  with  respect  to any and all  matters
arising under or relating to this Mortgage and all other Loan Documents.

         15.11 Partial Invalidity.  If any term or provision of this Mortgage is
               ------------------
at any time held to be  invalid  by any court of  competent  jurisdiction,  that
invalidity shall not affect the remaining terms and provisions of this Mortgage,
which shall continue to be in full force and effect.

         15.12 Receipt of Copies.  Mortgagor  hereby  acknowledges  receipt of a
               -----------------------------------------------------------------
true  copy of this  Mortgage,  the Note and the  other  Loan  Documents  without
--------------------------------------------------------------------------------
charge.
------

<PAGE>
                                                                   Page 22 of 32

         Mortgagor  has duly executed this Mortgage as of the date first written
above.

WITNESS:                                     BORROWER:

                                             RONSON CONSUMER PRODUCTS
                                             CORPORATION

/s/Daryl K. Holcomb                          /s/Louis V. Aronson II
-------------------                          --------------------------
                                             Louis V. Aronson II
                                             President and Chief Executive
                                             Officer

<PAGE>
                                                                   Page 23 of 32

                                   APPENDIX A
                                   ----------

                            GLOSSARY OF DEFINED TERMS
                            -------------------------

"Affidavit  of  Title"  means  the  affidavit  of title  given by  Mortgagor  to
Mortgagee in connection with this Mortgage.

"Affiliates" of a party means (a) any Person directly or indirectly controlling,
under common  control with, or controlled  by, that party,  or (b) any Person in
which that party directly or indirectly has a controlling interest.

"Appendix" means an Appendix to this Mortgage.

"Awards and Proceeds" means all awards,  damages,  claims,  payments,  insurance
proceeds (other than from liability  insurance  coverage) and other compensation
with respect to the Land,  Improvements,  Fixtures and other interests described
in Section 3 (collectively referred to as "Awards and Proceeds") including those
arising from: (a) any governmental taking or exercise of eminent domain, (b) any
damage, injury, casualty or other destruction or loss or (c) any change of grade
or vacation of any street.

"CEO" means Mortgagor's chief executive  officer.  "CFO" means Mortgagor's chief
financial officer.

"Commitment  Letter"  means the letter dated  August 14, 2006 from  Mortgagee to
Mortgagor setting forth certain terms of the Loan Documents.

"Environmental  Laws"  means  ISRA,  the  Spill  Compensation  and  Control  Act
(N.J.S.A. 58:10-23.11 et seq.), the Freshwater Wetlands Protection Act (N.J.S.A.
 --------             ------
13:9B-1 et seq.), the New Jersey Underground Storage of Hazardous Substances Act
        ------
(N.J.S.A.   58:10A-21  et  seq.),  the  Comprehensive   Environmental  Response,
Compensation,  and  Liability  Act  (42  U.S.C.  9601  et  seq.),  the  Resource
                                                       -------
Conservation and Recovery Act (42 U.S.C. _6901, et seq.), and all other federal,
                                                ------
state and local laws, rules and regulations regarding environmental matters.

"Expenses"  means any and all fees,  costs and  expenses,  including  reasonable
legal fees and  disbursements,  copying costs,  delivery and postage charges and
all filing and recording costs.

"Event of Default" has the meaning set forth in Section 8.

"Fixtures"  shall mean all  "fixtures"  (as defined under  applicable New Jersey
realty law) attached to the Land or Improvements.

"Governmental   Authority"   means  any  federal,   state  or  local   political
subdivision, governmental authority, agency, commission or board.

"Guarantor(s)"   means  any  Person  who  at  any  time  guarantees  payment  or
performance of any Obligations to the Mortgagee, and such Person's successors or
heirs, and assigns.

<PAGE>
                                                                   Page 24 of 32

"Guaranty(ies)"  means all  guaranties  of any  Obligations  presently or in the
future executed by any Guarantor in favor of Mortgagee.

"Hazardous  Substances" means any pollutants and dangerous  substances including
radon,  and any  "hazardous  wastes" or hazardous  substances" as defined in any
Environmental Law.

"Improvements"  means all buildings,  structures and other improvements of every
nature presently or in the future on, attached to or used in connection with the
Land, including all betterments,  substitutions,  replacements and proceeds, and
all  appurtenances  and paved roads and walkways  adjacent,  or relating to, the
foregoing or to the Land.

ISRA" means the Industrial Site Recovery Act (N.J.S.A.  13:1K-6 et seq.) and all
                                              --------          -------
regulations promulgated thereunder.

"Land" means the land and property commonly known as 3 Ronson Road,  Woodbridge,
New Jersey 07205  (designated  as Block 367, Lot 1.D) on the official Tax map of
the  Township of  Woodbridge,  County of  Middlesex,  State of, New Jersey,  and
having a legal description as set forth on Exhibit A to this Mortgage;

"Leases and Rents" means all rents,  issues,  profits,  revenues,  royalties and
benefits  now or  hereafter  due to  Mortgagor  in  connection  with the Land or
Improvements  including all rights and interests of Mortgagor as landlord  under
any  existing  and future  leases  with  respect to the Land,  Improvements  and
Fixtures and Equipment;

"Loan  Documents"  means this Mortgage,  the Note, the Guaranties,  and any loan
document  executed in connection  with a  simultaneous  $2,200,000.00  loan from
Mortgagee to Mortgagor.

"Material Adverse Change" means any set of circumstances or events which (a) has
or could reasonably be expected to have any material  adverse effect  whatsoever
upon the validity or enforceability of this Mortgage, (b) is or could reasonably
be expected to be material  and  adverse to the  business,  properties,  assets,
financial condition,  results of operations or prospects of Mortgagor taken as a
whole,  (c)  impairs  materially  or could  reasonably  be  expected  to  impair
materially the ability of Mortgagor  taken as a whole to duly and punctually pay
or perform its obligations or the underlying Loan, or (d) impairs  materially or
could be reasonably  expected to impair materially the ability of Mortgagee,  to
the extent permitted, to enforce its legal remedies pursuant to this Mortgage.

"Modification"  shall have the meaning  set forth in N.J.S.A.  46:9-8.1 et seq.,
                                                     --------           -------
which statute relates,  inter alia, to changes in the interest rate, due date or
                        ----------
other terms or conditions of a "mortgage loan", or future advances pursuant to a
"line of credit", as defined in that statute.

"Mortgage"  means this mortgage and all  modifications,  renewals and extensions
of, and all amendments to, this mortgage; this Mortgage is the Mortgage referred
to in the Note.

<PAGE>
                                                                   Page 25 of 32

"Mortgagee"  means the mortgagee named in the above caption of this Mortgage and
its successors and assigns.

"Mortgagor" means each mortgagor named in the above caption of this Mortgage and
their successors and assigns.

"Mortgaged  Property"  shall  have the  meaning  set forth in  Section 3 of this
Mortgage.

"Note" means the mortgage  promissory  note of this same date from  Mortgagor to
the order of  Mortgagee  in the  original  principal  amount of Two  Million Two
Hundred Thousand and 00/100 ($2,200,000.00) Dollars as may be amended, modified,
renewed, extended or replaced from time to time.

"Obligations"  means all debts,  liabilities,  duties and obligations owing from
any Obligor to  Mortgagee,  whether  direct or indirect,  now existing or in the
future created or acquired, contingent or non-contingent,  due or to become due,
liquidated or  unliquidated,  including the Note,  any Guaranty of the Note, all
other Loan Documents, all Modifications and all expenses of Mortgagee to protect
the Mortgaged Property or Mortgagee's interest in the Mortgaged Property.

"Obligor(s)"  means  each  Mortgagor  and each  Guarantor  who may now or in the
future has any duties,  debts or liabilities  to Mortgagee  pursuant to any Loan
Document.

"Other Rights" means all other rights whatsoever that any Mortgagor or any other
owner has or may  acquire  in the Land,  Improvements,  Fixtures  and Awards and
Proceeds, including all rights, privileges, liberties, rights of way, tenaments,
hereditaments,  easements,  public spaces,  streets,  alleys,  appurtenances and
sewer, air,  mineral,  water and subsurface rights of all kinds hereto belonging
or in any way appertaining.

"Permitted  Encumbrances"  means (a) any lien for  municipal  real estate taxes,
assessments or utilities that are not yet due and payable, and (b) any easements
that do not, in Mortgagee's reasonable judgment, interfere with the intended use
or operation,  or impair the value, of the Mortgaged Property,  and (c) purchase
money liens on Fixtures,  and (d)  statutory  liens of  carriers,  warehouseman,
bailees,  mechanics,  materialmen  and other like liens and improved by law, and
(e) liens in favor of Mortgagee,  and (f) liens of judgment creditors  (provided
that such liens do not exceed $100,000 in the aggregate at any time,  other than
liens bonded to the reasonable  satisfaction  of  Mortgagee);  and (g) any other
interests expressly  referenced on Exhibit B to this Mortgage,  and (h) any lien
renewing or extending any lien permitted by clauses (a) through (f) hereof.

"Person(s)" means an individual,  corporation,  limited  liability  corporation,
non-profit corporation,  partnership, limited partnership, joint venture, trust,
joint stock  company,  unincorporated  organization,  association,  Governmental
Authority or other business entity.

"Prime Rate" means the rate of interest that Mortgagee  adopts from time to time
as its official  prime rate. The prime rate is not tired to any external

<PAGE>
                                                                   Page 26 of 32

rate of  interest or index and does not  necessarily  reflect the lowest rate of
interest actually charged at any given time by Mortgagee to any particular class
or category of  customers  of  Mortgagee.  Any change in the prime rate shall be
effective  immediately  when  adopted by the  Mortgagee,  without  notice to any
Obligor.

"Section" means a section or subsection of this Mortgage.

"Transfer" means any change in ownership or control,  whether or not that change
is  voluntary,  involuntary  or by operation of law,  direct or indirect,  or by
merger  (regardless  of who is the  survivor  of that  merger) or by any pledge,
mortgage,  assignment,  sale,  lease,  lien,  encumbrance,  option,  transfer or
disposal of any kind.

To "Use" a substance means to generate, store, refine, treat, discharge, handle,
refine, spill, release, emit, leach or dispose of that substance in any manner.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]