Document:

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                                                                   Exhibit 10.61

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                             REIMBURSEMENT AGREEMENT

                           dated as of August 24, 2001
                                     between

                        NEW PLAN EXCEL REALTY TRUST, INC.
                                    (Company)

                                       and

                               FLEET NATIONAL BANK

                                     (Bank)

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                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I     DEFINITIONS......................................................1

   Section 1.01  Definitions...................................................1

   Section 1.02  Rules of Construction; Time of Day............................5

ARTICLE II    LETTERS OF CREDIT AND REIMBURSEMENT..............................6

   Section 2.01  Issuance of Letters of Credit; Amendments.....................6

   Section 2.02  Reimbursement and Other Payments..............................8

   Section 2.03  Obligations Absolute.........................................11

   Section 2.04  Indemnification..............................................11

   Section 2.05  Liability of Bank............................................12

   Section 2.06  Extension of Commitment Expiration Date......................13

ARTICLE III   SECURITY........................................................15

   Section 3.01  Guaranty.....................................................15

   Section 3.02  Collateral...................................................15

ARTICLE IV    CONDITIONS......................................................15

   Section 4.01  Documentation................................................15

ARTICLE V     REPRESENTATIONS AND WARRANTIES..................................16

   Section 5.01  Existence and Power..........................................16

   Section 5.02  Authority....................................................17

   Section 5.03  Binding Agreement............................................17

   Section 5.04  Litigation...................................................17

   Section 5.05  Required Consents............................................17

   Section 5.06  No Conflicting Agreements....................................18

   Section 5.07  Reaffirmation of Representations and Warranties..............18

ARTICLE VI    GENERAL COVENANTS...............................................18

   Section 6.01  Incorporation of Covenants from Senior Bank Facilities.......18

ARTICLE VII   DEFAULTS AND REMEDIES...........................................18

   Section 7.01  Defaults.....................................................18

   Section 7.02  Remedies.....................................................20

   Section 7.03  Waivers; Consents............................................21

   Section 7.04  No Waiver; Remedies Cumulative...............................21

   Section 7.05  Setoff.......................................................21

                                      -i-
<PAGE>
                               TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE

ARTICLE VIII  MISCELLANEOUS...................................................22

   Section 8.01  Notices......................................................22

   Section 8.02  Successors and Assigns.......................................23

   Section 8.03  Survival of Representations, Warranties and Covenants........23

   Section 8.04  Counterparts.................................................24

   Section 8.05  Costs, Expenses and Taxes....................................24

   Section 8.06  Amendments...................................................24

   Section 8.07  Severability; Interest Limitation............................24

   Section 8.08  Complete Agreement...........................................25

   Section 8.09  Conflicts....................................................25

   Section 8.10  Governing Law; Consent to Jurisdiction and Service...........25

   Section 8.11  Waiver of Jury Trial and Certain Damage Claims...............26

   Section 8.12  Table of Contents and Headings...............................26

   Section 8.13  Participations...............................................27

   Section 8.14  Relationship.................................................27

   Section 8.15  Time of the Essence..........................................27

   Section 8.16  Acknowledgment of Indemnity Obligations......................27

EXHIBITS

Exhibit A Form of Letter of Credit
Exhibit B Form of Letter of Credit Request
Exhibit C Form of Extension Request
Exhibit D Form of Notice of Reduction
Exhibit E Form of Notice of Amendment
Exhibit F Form of Letter of Credit Application

                                      -ii-
<PAGE>
                             REIMBURSEMENT AGREEMENT

           THIS REIMBURSEMENT AGREEMENT (this "Agreement"), made as of August
24, 2001 between NEW PLAN EXCEL REALTY TRUST, INC., a Maryland corporation (the
"Company"), and FLEET NATIONAL BANK (the "Bank").

                                R E C I T A L S:

           A. The Company has requested that the Bank issue certain irrevocable
standby letters of credit in the form of Exhibit A upon the written request of
the Company therefor (each such letter of credit, including any amendments
thereto and any substitute letter of credit therefor issued pursuant to the
terms hereof, a "Letter of Credit" and collectively, the "Letters of Credit") up
to an aggregate amount of Forty Million and No/100 Dollars ($40,000,000.00) (the
"Letters of Credit Amount").

           B. The Bank is willing to issue the Letters of Credit upon the terms
and conditions hereinafter provided.

           NOW, THEREFORE, in consideration of the foregoing and the
undertakings herein set forth and intending to be legally bound, the Company and
the Bank hereby agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

           SECTION 1.01 Definitions.

           In this Agreement (unless the context otherwise requires) the
following terms have the meanings specified in the Recitals set forth above:

                         Agreement
                         Bank
                         Company
                         Letters of Credit
                         Letters of Credit Amount

           Terms used but not defined herein shall have the meanings contained
in that certain Term Loan Agreement dated as of May 9, 2001 by and among the
Company, certain lenders who are parties thereto and the Bank, as Administrative
Agent for the lenders (as the same may be modified or amended from time to time,
the "Loan Agreement").
<PAGE>
           In addition, the following terms shall have the following meanings,
unless the context otherwise requires:

           "Assets" means any and all tangible and intangible assets and
property of the Company.

           "Authorized Representative" means an officer of the Company duly
authorized by the Company in such capacity to make the certifications required
by this Agreement or take the other actions indicated by the context.

           "Bank's Head Office" means the Bank's head office located at 100
Federal Street, Boston, Massachusetts 02110, or at such other location as the
Bank may designate from time to time by notice to the Company.

           "Bank's Special Counsel" means Long Aldridge & Norman LLP or such
other counsel as may be approved by the Bank.

           "Business Day" means any day on which banking institutions located in
the same city and state as the Bank's Head Office are located and are open for
the transaction of banking business.

           "Closing Date" means the date when all of the conditions under
Section 4.01 have been satisfied.

           "Commitment Expiration Date" means March 31, 2003, subject to
extension as provided in Section 2.06.

           "Credit Agreements" means, collectively, (i) that certain Credit
Agreement (Facility I) dated as of November 17, 1999, among the Company, The
Bank of New York, as Administrative Agent, and the lenders signatory thereto, as
subsequently amended, and (ii) that certain Credit Agreement (Facility II),
dated as of November 17, 1999, among the Company, The Bank of New York, as
Administrative Agent, and the lenders signatory thereto, as subsequently
amended.

           "Default" means an event which with the passage of time or giving of
notice or both would become an Event of Default.

           "Default Rate" shall have the meaning ascribed to such term in
Section 2.02(b).

           "Documents" means this Agreement, the Letters of Credit, the
Guaranty, and all other documents, instruments or agreements now or hereafter
executed or delivered by or on behalf of the Company and the Guarantors in
connection with the Letters of Credit, as the same may be amended, restated,
consolidated, supplemented, renewed, extended or replaced.

                                      -2-
<PAGE>
           "Draft" means a sight draft presented under a Letter of Credit.

           "Event of Default" shall have the meaning ascribed to such term in
Section 7.01.

           "Extension Fee" shall have the meaning ascribed to such term in
Section 2.06.

           "Extension Request" shall have the meaning ascribed to such term in
Section 2.06.

           "GAAP" means generally accepted accounting principles consistently
applied.

           "Guarantors" shall have the meaning ascribed to such term in Section
3.01.

           "Letters of Credit Exposure" means, at any time, the sum of (i) the
aggregate undrawn amount of all outstanding Letters of Credit at such time plus
(ii) the aggregate amount of all unreimbursed drawings under Letters of Credit
at such time.

           "Letter of Credit Fees" shall have the meaning ascribed to such term
in Section 2.02(c).

           "Letter of Credit Request" shall have the meaning ascribed to such
term in Section 2.01.

           "Material Adverse Effect" means a material adverse effect on (i) the
financial condition, operations, business, or Properties of (A) the Company or
(B) the Company and its Subsidiaries taken as a whole, (ii) the ability of the
Company to perform its obligations under the Documents, or (iii) the ability of
the Bank to enforce the Documents.

           "Material Contract" means each indenture, mortgage, deed of trust,
agreement or other instrument or contract (written or oral) to which the Company
is a party or by which any of its assets are bound which, if cancelled, breached
or not renewed by any party thereto, could reasonably have a Material Adverse
Effect.

           "Obligations" means all indebtedness, obligations and liabilities of
the Company and the Guarantors in favor of the Bank of every type and
description arising under this Agreement, the Guaranty or any of the other
Documents, direct or indirect, joint or several, absolute or contingent, due or
to become due, liquidated or unliquidated, secured or unsecured, arising by
contract, operation of law or otherwise, now existing or hereafter arising,
including but not limited to (i) all obligations under Section 2.02 to reimburse
the Bank, with interest, for all Drafts honored under the Letters of Credit, all
accrued and unpaid fees (including the Letter of Credit Fees and Extension
Fees), and all expenses, reimbursements, indemnities and other obligations of
the Company to the Bank or any other indemnified party hereunder, and (ii) all
other obligations in favor of the Bank arising under this Agreement, as they may
be amended from time to time.

                                      -3-
<PAGE>
           "Participating Banks" shall have the meaning ascribed to such term in
Section 8.13.

           "Participation Agreements" shall have the meaning ascribed to such
term in Section 8.13.

           "Person" means any individual, for profit or nonprofit corporation,
limited liability company, partnership, joint venture, association, joint stock
company, estate, trust, unincorporated organization, governmental body or any
agency or political subdivision thereof, or other legal entity.

           "Pricing Level" means one of the following five pricing levels, as
applicable, provided that if the ratings by S&P and Moody's in any such Pricing
Level are split by one equivalent rating level, the operative rating would be
deemed to be the higher of the two ratings, and if the ratings by S&P and
Moody's in any such Pricing Level are split by more than one equivalent rating
level, the operative rating would be deemed to be one rating level higher than
the lower of the two ratings, and provided, further, that during any period that
the Company has no Senior Debt Rating, Pricing Level V would be the applicable
Pricing Level:

           "Pricing Level I": the Pricing Level which would be applicable for so
long as the Senior Debt Rating is greater than or equal to A- by S&P or A3 by
Moody's;

           "Pricing Level II": the Pricing Level which would be applicable for
so long as the Senior Debt Rating is equal to BBB+ by S&P or Baa1 by Moody's and
Pricing Level I is not applicable;

           "Pricing Level III": the Pricing Level which would be applicable for
so long as the Senior Debt Rating is equal to BBB by S&P or Baa2 by Moody's and
Pricing Levels I and II are not applicable;

           "Pricing Level IV": the Pricing Level which would be applicable for
so long as the Senior Debt Rating is equal to BBB- by S&P or Baa3 by Moody's and
Pricing Levels I, II and III are not applicable; and

           "Pricing Level V": the Pricing Level which would be applicable for so
long as the Senior Debt Rating is less than BBB- by S&P or Baa3 by Moody's and
Pricing Levels I, II, III and IV are not applicable.

           "Required Additional Guarantor" shall have the meaning ascribed to
such term in Section 3.01.

           "Revolving Credit Facilities" means the senior unsecured revolving
credit facilities made to the Company pursuant to the Credit Agreements.

                                      -4-
<PAGE>
           "Senior Bank Facilities" means, collectively, the Term Loan and the
Revolving Credit Facilities.

           "Stated Expiration Date" means, with respect to any Letter of Credit,
the expiration date of such Letter of Credit provided for therein, which shall
not be later than September 28, 2004 in any event.

           "Taxes" shall have the meaning ascribed to such term in Section
2.02(e).

           "Term Loan" means the $100,000,000.00 senior unsecured term loan made
to the Company pursuant to the Loan Agreement.

           SECTION 1.02 Rules of Construction; Time of Day.

                 (a) A reference to any document or agreement shall include such
document or agreement as amended, modified or supplemented from time to time in
accordance with its terms and the terms of this Agreement.

                 (b) The singular includes the plural and the plural includes
the singular.

                 (c) A reference to any law includes any amendment or
modification to such law.

                 (d) A reference to any Person includes its permitted successors
and permitted assigns.

                 (e) Accounting terms not otherwise defined herein have the
meanings assigned to them by GAAP.

                 (f) The words "include", "includes" and "including" are not
limiting.

                 (g) The words "approval" and "approved", as the context so
determines, means an approval in writing given to the party seeking approval
after full and fair disclosure to the party giving approval of all material
facts necessary in order to determine whether approval should be granted.

                 (h) Reference to a particular "Section", refers to that section
of this Agreement unless otherwise indicated.

                 (i) The words "herein", "hereof", "hereunder" and words of like
import shall refer to this Agreement as a whole and not to any particular
section or subdivision of this Agreement.

                                      -5-
<PAGE>
                 (j) References to any time of the day in this Agreement shall
refer to Eastern Standard Time or Eastern Daylight Saving Time, as in effect in
Boston, Massachusetts on such day.

                                   ARTICLE II

                       LETTERS OF CREDIT AND REIMBURSEMENT

           SECTION 2.01 Issuance of Letters of Credit; Amendments.

                 (a) Letter of Credit Request. Subject to the terms and
conditions set forth in this Agreement, at any time and from time to time from
the Closing Date through the day that is thirty (30) days prior to the
Commitment Expiration Date, the Bank shall issue such Letters of Credit as the
Company may request upon the delivery of a written request in the form of
Exhibit B hereto (a "Letter of Credit Request") to the Bank, provided that (i)
no Default or Event of Default shall have occurred and be continuing, (ii) upon
issuance of such Letter of Credit, the Letters of Credit Exposure shall not
exceed the Letters of Credit Amount, (iii) the conditions set forth in Article
IV shall have been satisfied, (iv) the Letters of Credit shall only be issued to
Bank of America, N.A. or its designees and their successors and assigns for the
limited purpose of supporting the Company's sale of certain Assets, (v) the
Stated Expiration Date of the Letter of Credit shall not be later than September
28, 2004, and (vi) in no event shall any amount drawn under a Letter of Credit
be available for reinstatement or a subsequent drawing under such Letter of
Credit. Each Letter of Credit Request shall be executed by an Authorized
Representative of the Company. The Bank shall be entitled to conclusively rely
on such Person's authority to request a Letter of Credit on behalf of the
Company. The Bank shall have no duty to verify the authenticity of any signature
appearing on a Letter of Credit Request. The Company assumes all risks with
respect to the use of the Letters of Credit, except as provided in Sections 2.04
and 2.05(a). Each Letter of Credit Request shall be submitted to the Bank at
least ten (10) Business Days prior to the date upon which the requested Letter
of Credit is to be issued. Each such Letter of Credit Request shall contain a
certification by an Authorized Representative of the Company that the Company is
and will be in compliance with all covenants under the Documents after giving
effect to the issuance of such Letter of Credit. The Company shall further
deliver to the Bank such additional applications and documents as the Bank may
require in connection with the issuance of each Letter of Credit in conformity
with the then standard practices of its letter of credit department, provided,
that in the event of any conflict, the terms of this Agreement shall control. A
current form of application is attached hereto as Exhibit F.

                 (b) Issuance of Letters of Credit. The Company hereby requests
that the Bank issue the Letters of Credit for its account. The Bank will issue
the Letters of Credit pursuant to the foregoing request of the Company, subject
to the Company's satisfaction of the conditions hereof, including the conditions
set forth in Article IV. The

                                      -6-
<PAGE>
Letters of Credit shall be issued substantially in the form of Exhibit A,
appropriately completed. The Letters of Credit shall expire at 5:00 p.m. on the
Stated Expiration Date or, if such day is not a Business Day, on the next
succeeding Business Day.

                 (c) Reduction and Termination.

                           (i) The beneficiary of the Letters of Credit shall
have the right to request that the Bank permanently reduce, without penalty or
premium, the amount of any Letter of Credit. In order to effect such reductions,
the beneficiary shall give at least three (3) Business Days prior written notice
to the Bank in the form of Exhibit D attached hereto, designating the effective
date (which shall be a Business Day) of such reduction and the amount of such
reduction. Such reduction of the amount of a Letter of Credit shall be effective
on the third (3rd) Business Day following the date of delivery of such notice.
Any reduction shall be in an amount not less than $100,000.00.

                           (ii) If the beneficiary shall partially reduce the
amount of a Letter of Credit as described in subparagraph (c)(i) above, the Bank
shall then deliver to the beneficiary a Notice of Amendment to the Letter of
Credit in the form of Exhibit E attached hereto, dated the effective date of
such partial reduction of the amount of the Letter of Credit and stating the
amount to which the Letter of Credit has been reduced.

                           (iii) If a Letter of Credit is reduced to $0.00 or an
original Letter of Credit is otherwise surrendered to the Bank by the
beneficiary for termination, the Company shall not be liable for the payment of
any further fees under Sections 2.02(c) or 2.06(b) below with respect to such
Letter of Credit, provided that the Bank shall have no obligation to refund any
portion of fees previously paid with respect to such Letter of Credit.

                 (d) Amendments. Except as provided in Section 2.01(c) above,
the issuance of any supplement, modification, amendment, renewal or extension to
or of any Letter of Credit shall be treated in all respects the same as the
issuance of a new Letter of Credit.

                 (e) Transfer. The Letters of Credit shall be transferable by
the beneficiary as more particularly provided in the Form of Letter of Credit
attached hereto as Exhibit A. The Company shall pay to the Bank as of the date
of any transfer of a Letter of Credit a transfer fee equal to One Thousand and
No/100 Dollars ($1,000.00) per Letter of Credit.

                 (f) Replacement. The beneficiary shall have the right upon two
(2) Business Days' prior written notice to have a Letter of Credit terminated
and replaced by multiple Letters of Credit in favor of such beneficiaries and in
such amounts as shall be specified in the notice from the original beneficiary
to the Bank in the form of Annex B attached to the form Letter of Credit
(Exhibit A hereto); provided, however, that:

                                      -7-
<PAGE>
                           (i) There shall never be more than twelve (12)
Letters of Credit issued and outstanding at any time;

                           (ii) The aggregate amount of the replacement Letters
of Credit shall not exceed the amount of the Letter of Credit being replaced;

                           (iii) The Stated Expiration Date of the replacement
Letters of Credit shall not be later than September 28, 2004;

                           (iv) The replacement Letters of Credit shall provide
that each shall be inoperative until the Bank shall have received the original
of the Letter of Credit being replaced in its possession at the address
specified in such Letter of Credit, but shall otherwise be issued in the same
form as the Letter of Credit being replaced and shall be subject to all other
requirements for the issuance of Letters of Credit provided in this Agreement,
including, without limitation, the furnishing by the Company of completed
applications in the form of Exhibit F hereto to the Bank, but excluding the
payment of the issuance fee described in the first sentence of Section 2.02(c);

                           (v) On the date of issuance of any replacement
Letters of Credit, the Company shall pay the Bank a replacement fee of $1,000.00
per replacement Letter of Credit issued;

                           (vi) The original of the Letter of Credit being
replaced shall be surrendered to the Bank for cancellation so that it will have
no further liability thereunder;

                           (vii) Upon issuance of the replacement Letters of
Credit and receipt of the original of the Letter of Credit being replaced, the
Bank shall be absolutely and unconditionally released of all liability and
obligations under such Letter of Credit and from any and all other obligations
and liabilities relating to the issuance and maintenance of such Letter of
Credit; and

                           (viii) In no event shall any replacement of a Letter
of Credit entitle the Company to a refund of any portion of the fees theretofore
paid to the Bank or which have accrued or become payable through the time of
such replacement, it being specifically acknowledged by the Company that all
Letter of Credit Fees, Extension Fees and other fees payable under this
Agreement are non-refundable as provided herein.

           SECTION 2.02 Reimbursement and Other Payments.

                 (a) Reimbursement Payments. The Company hereby agrees to pay to
the Bank a sum equal to each amount drawn under a Letter of Credit by a Draft on
or before the date that is five (5) Business Days after notice from the Bank
that such Draft has been honored. All amounts under this Section 2.02(a) shall
be paid without set off,

                                      -8-
<PAGE>
claim or counterclaim in funds immediately available to the Bank. All
Obligations of the Company under this Section 2.02 are demand obligations.

                 (b) Interest on Drawings. All sums payable to the Bank under
Section 2.02(a) which are not paid within five (5) Business Days of the notice
from the Bank described in Section 2.02(a) above shall bear interest from such
date until such sums are paid in full at a fluctuating rate per annum (computed
for the actual number of days elapsed, based on a 360-day year) equal to two
percent (2%) per annum above the Prime Rate (both before and after judgment)
(the "Default Rate"). Interest accruing pursuant to this Section 2.02(b) shall
be due and payable on demand and on the date the respective sum is paid.

                 (c) Letter of Credit Fees. In connection with the issuance of
each Letter of Credit, the Company shall pay to the Bank on the date of issuance
a fee in an amount calculated by multiplying (x) the amount of the Letter of
Credit by (y) the applicable percentage based on the Senior Debt Rating of the
Company at the time of issuance as follows:

<TABLE>
<CAPTION>
                                            Percentage
           Pricing Level                    (per quarter)
           -------------                    -------------
<S>                                         <C>
           Pricing Levels I and II          0.35%
           Pricing Level III                0.375%
           Pricing Level IV                 0.4%
           Pricing Level V                  0.5%
</TABLE>

by (z) the numbers of full quarters remaining until the Commitment Expiration
Date (determined without regard to the exercise of any extension options
pursuant to Section 2.06). If the Senior Debt Rating of the Company declines
after the issuance of a Letter of Credit and payment of the initial fee but
prior to the Commitment Expiration Date (as determined without regard to the
exercise of any extension options pursuant to Section 2.06), the Company shall
pay to the Bank an additional fee computed by multiplying (x) the amount of the
Letters of Credit Exposure at such time by (y) the difference between the
applicable percentage corresponding to the new Senior Debt Rating and the
applicable percentage corresponding to the previous Senior Debt Rating by (z)
the number of full quarters remaining until the Commitment Expiration Date
(determined without regard to the exercise of any extension options pursuant to
Section 2.06). The fees provided for in this Section 2.02(c) (the "Letter of
Credit Fees") shall be fully earned when paid and non-refundable under any
circumstances.

                 (d) Increased Costs. If after the date of this Agreement any
enactment, promulgation or adoption of or change in any applicable foreign or
domestic law, regulation or rule or in the interpretation or administration
thereof by any court, administrative or governmental authority, central bank or
comparable agency charged

                                      -9-
<PAGE>
with the interpretation or administration thereof, or compliance by the Bank or
any Participating Bank (or any controlling affiliate) with any guideline,
request or directive issued after the date hereof (whether or not having the
force of law) of any such authority, central bank or comparable agency, shall
either (i) impose, modify or deem applicable any reserve, special deposit,
insurance assessment or similar requirement (including without limitation a
guideline, request or directive which affects the manner in which the Bank or
any Participating Bank allocates capital resources to its commitments and/or
risks, including its obligations and/or risks under this Agreement, the Letters
of Credit or any Participation Agreement), (ii) affect the amount of capital
required or expected to be maintained by the Bank or any Participating Bank (or
any controlling affiliate), (iii) subject the Bank or any Participating Bank (or
any controlling affiliate) to any tax, levy, impost, duty, deduction,
withholding or other charge or change the basis of taxation of the Bank or any
Participating Bank (other than a change in a rate of tax based on overall net
income of the Bank or such Participating Bank), or (iv) impose on the Bank or
any Participating Bank any other condition regarding this Agreement, the Letters
of Credit or any Participation Agreement, and the result of any event referred
to in clause (i), (ii), (iii) or (iv) of this sentence shall be to increase the
direct or indirect cost to the Bank or any Participating Bank of issuing or
maintaining the Letters of Credit or the obligations and/or risks of the Bank or
any Participating Bank under this Agreement or any Participation Agreement or to
reduce the amounts receivable by the Bank or any Participating Bank hereunder or
under any Participation Agreement or to reduce the rate of return on the capital
of the Bank or any Participating Bank in connection with this Agreement or any
Participation Agreement, then within ten (10) Business Days after demand by the
Bank (on behalf of itself or any Participating Bank), the Company shall pay to
the Bank or the applicable Participating Bank, from time to time as specified by
the Bank or the applicable Participating Bank, additional amounts that in the
aggregate shall be sufficient to compensate the Bank or such Participating Bank
for such increased cost, reduction in amounts receivable or reduction in rate of
return. A certificate as to such increased cost, reduction in amounts receivable
by the Bank or any Participating Bank or reduction in rate of return submitted
by the Bank or the applicable Participating Bank to the Company containing an
explanation of such increased cost, reduction in amounts receivable or reduction
in rate of return and the manner of calculation thereof shall, in absence of
manifest error, be conclusive and binding for all purposes.

                 (e) No Deductions. All payments by the Company to the Bank
under this Agreement shall be made free and clear of and without deduction for
any present or future taxes or other amounts for or on account of levies,
imposts, duties, deductions, withholdings or other charges of whatsoever nature
(including, without limitation, interest, additions to tax and penalties
thereon), imposed, levied, collected, withheld or assessed by any governmental
authority (excluding any taxes based on income of the Bank and excluding
franchise and similar taxes imposed by the jurisdiction under which it is
organized or in which the Bank's office at the address set forth in Section 8.01
is located or any political subdivision thereof) (collectively, "Taxes"). If the
Company shall be required to withhold or deduct Taxes from any sum payable to
the Bank hereunder, (i)

                                      -10-
<PAGE>
the sum payable to the Bank shall be increased as may be necessary so that the
Bank receives an amount equal to the sum it would have received had no such
withholdings or deductions been made, (ii) the Company shall make such necessary
withholdings and deductions, and (iii) the Company shall pay the full amount
withheld or deducted to the relevant authority according to applicable law so
that the Bank shall not be required to make any deduction or payment of such
Taxes.

                 (f) General Interest Accrual. All payments to the Bank under
this Agreement (including without limitation all payments becoming due under
Sections 2.01(e), 2.01(f), 2.02(a), (c), (d) and (e) and 2.06) shall be
accompanied by interest thereon, from the date such payments become due until
they are paid in full at the Default Rate.

                 (g) Place and Manner of Payment. All payments by the Company to
the Bank under this Agreement shall be made in lawful currency of the United
States by wire transfer to Fleet National Bank, ABA No.011000138, Credit to
Commercial Loan Services - GL #1510351-66156, Reference: New Plan Excel-Oblr
#31038169, not later than 1:00 p.m. (Boston time) on the day when due. All
payments shall be made in immediately available funds as aforesaid or as the
Bank may otherwise stipulate by written notice to the Company. Whenever a
payment hereunder or under any of the other Documents becomes due on a day that
is not a Business Day, the due date for such payment shall be extended to the
next succeeding Business Day, and interest shall accrue during such extension.

           SECTION 2.03 Obligations Absolute.

           The obligations of the Company under this Article shall be absolute,
unconditional and irrevocable, shall be performed strictly in accordance with
the terms of this Agreement, under all circumstances whatsoever, including
without limitation the following circumstances: (i) any lack of validity or
enforceability of the Letters of Credit, the Guaranty or any of the other
Documents; (ii) any amendment or waiver of or any consent to or departure from
the Letters of Credit, the Guaranty or any of the other Documents; (iii) the
existence of any claim, setoff, defense or other right which the Company may
have at any time against the Bank, any Participating Bank or any other Person,
whether in connection with this Agreement, the transactions described herein or
any unrelated transaction; or (iv) any of the circumstances contemplated in
clauses (1) through (7), inclusive, of Section 2.05(a).

           SECTION 2.04 Indemnification.

           In addition to any and all rights of reimbursement, indemnification,
subrogation or any other rights pursuant hereto or under law or equity, to the
extent permitted by applicable law, the Company hereby indemnifies and holds
harmless the Bank and the Participating Banks (and their directors, officers,
employees and agents) from and against any and all claims, damages, losses,
liabilities, costs or expenses (including reasonable

                                      -11-
<PAGE>
attorneys' fees for counsel of the Bank's or the applicable Participating Bank's
choice) whatsoever which the Bank or any Participating Bank may incur (or which
may be claimed against the Bank or any Participating Bank by any Person
whatsoever) by reason of or in connection with (a) the issuance or a transfer
of, or payment or failure to pay under, a Letter of Credit, (b) any breach by
the Company or the Guarantors of any representation, warranty, covenant, term or
condition in, or the occurrence of any default by the Company under this
Agreement, the Guaranty or any of the other Documents, including all reasonable
fees or expenses resulting from the settlement or defense of any claims or
liabilities arising as a result of any such breach or default, and (c)
involvement of the Bank or any Participating Bank in any legal suit,
investigation, proceeding, inquiry or action as a consequence, direct or
indirect, of the Bank's issuance of a Letter of Credit, its entering into this
Agreement or action taken thereunder or under the Guaranty or any of the other
Documents, or any other event or transaction in connection with or contemplated
by any of the foregoing; provided the Company shall not be required to indemnify
the Bank or any Participating Bank for any claims, damages, losses, liabilities,
costs or expenses to the extent, but only to the extent, caused by (i) the
willful misconduct or gross negligence of the Bank in determining whether
documents presented under a Letter of Credit complied with the terms of the
Letter of Credit, (ii) the payment by the Bank under a Letter of Credit
presented by the beneficiary for payment after the Stated Expiration Date of the
Letter of Credit (except to the extent the Stated Expiration Date is deemed
extended under the International Standby Practices (ISP98)), or (iii) the Bank's
willful failure or gross negligence in failing to pay under a Letter of Credit
after the presentation to it by the beneficiary of a Draft strictly complying
with the terms and conditions of the Letter of Credit, unless the Bank in good
faith believes that it is prohibited by law or other legal authority from making
such payment. Nothing in this Section is intended to limit the Company's
reimbursement and interest payment obligations contained in Sections 2.02(a) and
2.02(b). If, and to the extent that the obligations of the Company under this
Section 2.05 are unenforceable for any reason, the Company hereby agrees to make
the maximum contribution to the payment in satisfaction of such obligations
which is permissible under applicable law. The obligations of the Company under
this Section shall survive the termination of this Agreement.

           SECTION 2.05 Liability of Bank.

                 (a) As between the Company and the Bank, the Company assumes
all risks of the acts or omissions of the beneficiary with respect to the
beneficiary's use of a Letter of Credit. Neither the Bank nor any of its
officers or directors shall be liable or responsible for: (1) the use which may
be made by or on behalf of the beneficiary of a Letter of Credit or for any acts
or omissions by the beneficiary in connection therewith; (2) the form, validity,
sufficiency, accuracy or genuineness of any documents (including without
limitation any documents presented under a Letter of Credit), or of any
statement therein or endorsement thereon, even if any such documents, statements
or endorsements should in fact prove to be in any or all respects invalid,
insufficient, fraudulent, forged,

                                      -12-
<PAGE>
inaccurate or untrue; (3) the payment by the Bank against presentation of
documents which do not comply with the terms of a Letter of Credit, including
failure of any documents to bear any reference or adequate reference to a Letter
of Credit, or any other failure by or on behalf of the beneficiary to comply
fully with conditions required in order to effect a drawing under a Letter of
Credit; (4) the validity or sufficiency of any instrument delivered by or on
behalf of the beneficiary or any other Person (other than the Bank) transferring
or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which
may prove to be invalid or ineffective for any reason; (5) errors, omissions,
interruptions, losses or delays in transmission or delivery of any messages by
mail, cable, telegraph, telex, telephone or otherwise; (6) any loss or delay in
the transmission or otherwise of any document or draft required in order to make
a drawing under a Letter of Credit; or (7) any other circumstances whatsoever in
making or failing to make payment under a Letter of Credit; except only that the
Company shall have a claim against the Bank, and the Bank shall be liable to the
Company, to the extent, but only to the extent, of any direct, as opposed to
special, exemplary, consequential or punitive, damages suffered by the Company
which the Company proves were caused by (i) the willful misconduct or gross
negligence of the Bank in determining whether a Draft presented under a Letter
of Credit complied with the terms of the Letter of Credit, (ii) the payment by
the Bank under a Letter of Credit presented by the beneficiary for payment after
the Stated Expiration Date of the Letter of Credit (except to the extent the
Stated Expiration Date is deemed extended under the International Standby
Practices (ISP98)), or (iii) the Bank's willful failure or gross negligence in
failing to pay under a Letter of Credit after the presentation to it by or on
behalf of the beneficiary of a Draft strictly complying with the terms and
conditions of the Letter of Credit, unless the Bank in good faith believes that
it is prohibited by law or other legal authority from making such payment. In
furtherance and not in limitation of the foregoing, the Bank may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary.

                 (b) Except for the Bank's obligations under the Letters of
Credit, the Bank shall have no liability to the Company or any other Person as a
result of any reduction of the credit rating of the Bank or any deterioration in
the Bank's financial condition. No reduction of the Bank's credit rating or
deterioration in the Bank's financial condition shall reduce or in any way
diminish the obligations of the Company to the Bank under this Agreement,
including without limitation the Company's obligations to pay fees on the
Letters of Credit to the Bank and to reimburse the Bank, with interest, for
drawings under the Letters of Credit.

           SECTION 2.06 Extension of Commitment Expiration Date.

           The Company shall have six (6) separate options to extend the
Commitment Expiration Date by three (3) months per option (for an aggregate
extension period of eighteen (18) months ending September 28, 2004), upon
satisfaction of the following

                                      -13-
<PAGE>
conditions precedent, which must be satisfied prior to the effectiveness of any
extension of the then applicable Commitment Expiration Date:

                 (a) Extension Request. The Company shall deliver written notice
of such request in the form of Exhibit C hereto (an "Extension Request") to the
Bank not later than the date which is twenty (20) days prior to the then
applicable Commitment Expiration Date (as determined without regard to such
Extension Request).

                 (b) Payment of Extension Fee. The Company shall pay to the Bank
an extension fee (an "Extension Fee") in an amount determined by multiplying the
amount of the Letters of Credit Exposure at such time by the applicable
percentage based on the Senior Debt Rating of the Company on the then applicable
Commitment Expiration Date, which fee shall, when paid, be fully earned and
non-refundable under any circumstances:

<TABLE>
<CAPTION>
                                              Percentage
           Pricing Level                      (per quarter)
           -------------                      -------------
<S>                                           <C>
           Pricing Levels I and II            0.34375%
           Pricing Level III                  0.36875%
           Pricing Level IV                   0.39375%
           Pricing Level V                    0.49375%
</TABLE>

Each Extension Fee shall be payable in advance at the beginning of the then
applicable extension period.

                 (c) No Default. On the date the Extension Request is given and
on the then applicable Commitment Expiration Date (as determined without regard
to such Extension Request) there shall exist no Default or Event of Default.

                 (d) Representations and Warranties. The representations and
warranties made by the Company and the Guarantor in the Documents or otherwise
made by or on behalf of the Company and the Guarantor in connection therewith or
after the date thereof shall have been true and correct in all material respects
when made and shall also be true and correct in all material respects on the
then applicable Commitment Expiration Date (as determined without regard to such
Extension Request), other than for changes resulting from transactions
contemplated or permitted by this Agreement and changes occurring in the
ordinary course of business that singly or in the aggregate do not have a
Material Adverse Effect, and except to the extent that such representations and
warranties relate expressly to an earlier date.

                 (e) Prior Option Exercised. The Company shall have exercised
the prior option to extend the Commitment Expiration Date. To the extent the
Company elects not to exercise an extension option, all subsequent options shall
immediately terminate and be of no further force or effect. Notwithstanding the
foregoing provisions

                                      -14-
<PAGE>
of this Section 2.06, the Company agrees to exercise the then applicable
extension option so long as any Letter of Credit is outstanding.

                                  ARTICLE III

                                    SECURITY

           SECTION 3.01 Guaranty.

           Simultaneously with the execution and delivery by the Company of this
Agreement, the Company shall cause any and all guarantors of the Senior Bank
Facilities (collectively, including without limitation any Required Additional
Guarantors (as hereinafter defined), the "Guarantors") to execute and deliver a
guaranty in form and substance similar to those executed and delivered in
connection with the Senior Bank Facilities, pursuant to which the Guarantors
shall guarantee to the Bank the repayment of the Obligations. Within five (5)
Business Days of the execution and delivery by any additional guarantor of a
guaranty under any of the Senior Bank Facilities, the Company shall also cause
such additional guarantor (a "Required Additional Guarantor") to execute and
deliver to the Bank a guaranty of the Obligations, together with the opinion of
counsel, organizational documents, certificates and attachments required under
the Senior Bank Facilities with respect to such Required Additional Guarantor.

           SECTION 3.02 Collateral.

           If and to the extent that any of the Senior Bank Facilities are
collateralized by the Company, the Company shall at such time deposit in a cash
collateral account opened with the Bank, or provide other collateral that is
satisfactory to the Bank, in an amount equal to the Letters of Credit Exposure
at such time. The Company hereby grants to the Bank a security interest in such
cash or other collateral to secure the payment of the Obligations. The Company
shall execute and deliver to the Bank such further documents and instruments as
the Bank may request to evidence the creation and perfection of such security
interest in such cash collateral account or other collateral.

                                   ARTICLE IV

                                   CONDITIONS

           SECTION 4.01 Documentation.

           As conditions precedent to the Bank's issuance of the Letters of
Credit, the Bank shall have received each of the following in form and substance
satisfactory to the Bank:

                 (a) Original executed copies of this Agreement, the Guaranty
and the closing statement for this transaction, if any;

                                      -15-
<PAGE>
                 (b) A completed Letter of Credit Request;

                 (c) A certificate of an Authorized Representative of the
Company and each Guarantor as of the Closing Date certifying copies of the
articles of incorporation and bylaws, the partnership agreement and certificate
of limited partnership or other organizational documents, as applicable, of, and
a good standing certificate for, the Company and each Guarantor, and resolutions
necessary for the valid execution, delivery and performance by the Company and
the Guarantors of each of the Documents to which each of the Company and the
Guarantors is or is to become a party;

                 (d) An incumbency certificate dated as of the Closing Date,
signed by an Authorized Representative of the Company and each of the Guarantors
and giving the name and bearing a specimen signature of each individual who
shall be authorized to sign, in the name and on behalf of the Company and each
of the Guarantors, each of the Documents to which each of the Company and the
Guarantors is or is to become a party;

                 (e) Opinions of Hogan & Hartson, LLP, Goodwin, Proctor & Hoar
LLP and the Company's general counsel, covering such matters as to the Company,
the Guarantors and the Documents as the Bank may reasonably request;

                 (f) Payment of the Letter of Credit Fees payable pursuant to
Section 2.02(c); and

                 (g) Such other documents, instruments, certificates, opinions,
approvals and assurances customary in this type of financing as the Bank or the
Bank's Special Counsel may reasonably request.

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

           The Company represents and warrants as follows:

           SECTION 5.01 Existence and Power.

                 (a) The Company is a Maryland corporation duly organized and
validly existing and in good standing under the laws of Maryland, has all
requisite power and authority to own its Property and to carry on its business
as now conducted, and is in good standing and authorized to do business in each
jurisdiction in which the nature of the business conducted therein or the
Property owned therein make such qualification necessary, except where such
failure to qualify could not reasonably be expected to have a Material Adverse
Effect.

                 (b) Each Subsidiary of the Company (including each Subsidiary
which is also a Guarantor) is a corporation, partnership, limited liability
company, real estate

                                      -16-
<PAGE>
investment trust or business trust, is validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to own its Property and to carry on its business as now conducted,
and is in good standing and authorized to do business in each other jurisdiction
in which the nature of the business conducted therein or the Property owned
therein make such qualification necessary, except where such failure to qualify
could not reasonably be expected to have a Material Adverse Effect.

           SECTION 5.02 Authority.

           The Company has full legal power and authority to enter into,
execute, deliver and perform the terms of the Documents to which it is a party
and to incur the obligations provided for herein and therein, all of which have
been duly authorized by all proper and necessary corporate action.

           SECTION 5.03 Binding Agreement.

                 (a) The Documents to which the Company is a party constitute
the valid and legally binding obligations of the Company, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors' rights generally.

                 (b) The execution, delivery and performance by the Company of
the Documents to which it is a party does not violate the provisions of any
applicable statute, law (including, without limitation, any applicable usury or
similar law), rule or regulation of any Governmental Authority.

           SECTION 5.04 Litigation.

           There are no actions, suits or proceedings at law or in equity or by
or before any Governmental Authority (whether or not purportedly on behalf of
the Company or any Subsidiary of the Company) pending or, to the knowledge of
the Company, threatened against the Company or any Subsidiary of the Company or
any of their respective Properties or rights, which (i) if adversely determined,
could reasonably be expected to have a Material Adverse Effect, (ii) call into
question the validity or enforceability of any of the Documents, or (iii) could
reasonably be expected to result in the rescission, termination or cancellation
of any franchise, right, license, permit or similar authorization held by the
Company or any Subsidiary of the Company, which rescission, termination or
cancellation could reasonably be expected to have a Material Adverse Effect.

           SECTION 5.05 Required Consents.

           No consent, authorization or approval of, filing with, notice to, or
exemption by, stockholders, any Governmental Authority or any other Person not
obtained is required to

                                      -17-
<PAGE>
be obtained by the Company to authorize, or is required in connection with the
execution, delivery and performance of the Documents or is required to be
obtained by the Company as a condition to the validity or enforceability of the
Documents.

           SECTION 5.06 No Conflicting Agreements.

           Neither the Company nor any Subsidiary of the Company is in default
beyond any applicable grace or cure period under any mortgage, indenture,
contract or agreement to which it is a party or by which it or any of its
Property is bound, the effect of which default could reasonably be expected to
have a Material Adverse Effect. The execution, delivery or carrying out of the
terms of the Documents will not constitute a default under, or result in the
creation or imposition of, or obligation to create, any Lien upon any Property
of the Company or any Subsidiary of the Company pursuant to the terms of any
such mortgage, indenture, contract or agreement.

           SECTION 5.07 Reaffirmation of Representations and Warranties.

           The Company hereby reaffirms to the Bank the representations and
warranties made in Sections 4.4 and 4.8 through 4.24 of the Loan Agreement which
are incorporated herein by reference as fully as if set forth herein.

                                   ARTICLE VI

                                GENERAL COVENANTS

           SECTION 6.01 Incorporation of Covenants from Senior Bank Facilities.
So long as any amount is available under the Letters of Credit, the Letters of
Credit have not been terminated as provided by their terms or any amount is
owing to the Bank hereunder or under the other Documents, the Company covenants
that, except to the extent the Bank shall otherwise consent in writing, each of
the covenants contained in Articles 7 and 8 of the Loan Agreement and the Credit
Agreements shall be performed and complied with by the Company and the
Guarantors as fully as if set forth herein. The Company agrees upon the request
of the Bank to amend this Agreement to further incorporate the covenants of the
Loan Agreement and such Credit Agreements and any applicable definitions if
requested to do so by the Bank. Furthermore, the Company agrees upon the request
of the Bank to acknowledge the operative Loan Agreement and Credit Agreements if
same are amended, restated or modified after the date hereof.

                                      -18-
<PAGE>
                                  ARTICLE VII

                              DEFAULTS AND REMEDIES

           SECTION 7.01 Defaults.

           Each of the following shall constitute an event of default hereunder
("Event of Default"):

                 (a) Failure by the Company to pay or cause to be paid in full
to the Bank under this Agreement any amount due as reimbursement for a Draft
honored under a Letter of Credit within five (5) Business Days after notice from
the Bank that such Draft is honored by the Bank;

                 (b) Failure by the Company or any Guarantor to make any other
payment to the Bank under this Agreement or the other Documents within five (5)
Business Days of the date when it is due;

                 (c) Failure by the Company or any Guarantor to perform or
comply with any of the other terms or conditions contained in this Agreement,
the Guaranty or with any of the terms and conditions contained in the other
Documents and continuance of such failure for thirty (30) days after written
notice from the Bank to the Company, or such longer period to which the Bank in
its sole discretion may agree in the case of a failure not curable by the
exercise of due diligence within such thirty (30) day period, provided that (i)
the Company shall have commenced to cure such failure within such thirty (30)
day period, and (ii) the Company shall complete such cure as quickly as
reasonably possible with the exercise of due diligence, and (iii) such failure
shall not have a Material Adverse Effect;

                 (d) Any of the representations or warranties of the Company or
any of the Guarantors set forth in this Agreement, the Guaranty or in any other
Document proves to have been false or misleading in any material respect;

                 (e) Any material provision of this Agreement, the Guaranty or
any of the other Documents shall at any time for any reason cease to be valid
and binding on the Company or the Guarantors, or shall be declared to be null
and void, or shall be violative of any applicable law relating to a maximum
amount of interest permitted to be contracted for, charged or received, or the
validity or enforceability thereof shall be contested by the Company, any of the
Guarantors or any governmental agency, court or authority, or the Company or any
of the Guarantors shall deny that it has any or further liability or obligation
under this Agreement, the Guaranty or any of the other Documents; or

                 (f) Any default or breach shall occur and continue beyond the
expiration of any applicable grace or notice and cure period under the terms or
conditions

                                      -19-
<PAGE>
of the Loan Agreement or any of the Credit Agreements (including, without
limitation, any breach of the covenants contained in Articles 7 and 8 of the
Credit Agreements and the Loan Agreement) (the parties hereto covenanting and
agreeing, for the purposes of this Agreement, that in the event the Credit
Agreements and the Loan Agreement shall terminate or no longer be in full force
and effect prior to the payment and performance by the Company of all of the
Obligations, the provisions of the Credit Agreements and the Loan Agreement
shall for the purposes hereof continue in full force and effect as if the same
had not been terminated and the Credit Agreements and the Loan Agreement
remained in full force and effect).

           SECTION 7.02 Remedies.

                 (a) Remedies. If an Event of Default has occurred and is
continuing uncured, the Bank may, at its sole option and without prior notice,
demand or presentment, and to the extent permitted by applicable law, do any or
all of the following:

                           (i) terminate its commitment under this Agreement to
issue any further Letters of Credit;

                           (ii) declare an amount equal to the Obligations,
including without limitation, the Letters of Credit Exposure, as having been
paid or disbursed by the Bank under the Letters of Credit and a loan to the
Company from the Bank in such amount to have been made and accepted, which loan
shall be immediately due and payable;

                           (iii) if the Obligations have become cash
collateralized pursuant to Section 3.02, exercise any and all such rights as the
Bank may have as a secured party under the Uniform Commercial Code of the State
of New York or other applicable law with respect to the security interests
created pursuant to Section 3.02;

                           (iv) by injunction or other writ, order, decree or
decision of a court of competent jurisdiction in an action, suit or other
proceeding at law or in equity, enjoin any acts or things which may be unlawful
or in violation of the Bank's rights under this Agreement, the Guaranty or any
other Document; and

                           (v) exercise, or cause to be exercised, any and all
such rights and remedies as it may have under this Agreement, the Guaranty or
any other Document or at law or in equity.

Following the occurrence and during the continuance of any Event of Default, and
regardless of whether or not the Bank shall have accelerated the Obligations,
all Obligations outstanding shall bear interest payable on demand at a rate per
annum equal to the Default Rate, until such amount shall be paid in full (after
as well as before judgment).

                                      -20-
<PAGE>
                 (b) Cash Collateral. Upon the occurrence, and during the
continuance, of any Event of Default, and to the extent the Obligations have not
already been cash collateralized pursuant to Section 3.02, the Company shall at
such time deposit in a cash collateral account opened by the Bank an amount
equal to the Letters of Credit Exposure at such time. The Company hereby grants
to the Bank a security interest in such cash collateral to secure all
obligations of the Company in respect of such Letters of Credit under this
Agreement and the other Documents. The Company shall execute and deliver to the
Bank such further documents and instruments as the Bank may request to evidence
the creation and perfection of such security interest in such cash collateral
account. Amounts held in such cash collateral account shall be applied by the
Bank to the payment of Drafts drawn under such Letters of Credit, and the unused
portion thereof after all such Letters of Credit shall have expired or been
fully drawn upon, if any, shall be applied to repay other Obligations of the
Company hereunder. After all such Letters of Credit shall have expired or been
fully drawn upon, all obligations under the Letters of Credit shall have been
satisfied and all other Obligations of the Company hereunder shall have been
paid in full, the balance, if any, in such cash collateral account shall be
returned to the Company.

           SECTION 7.03 Waivers; Consents.

           No waiver of, or consent with respect to, any provision of this
Agreement, the Guaranty or any of the other Documents shall in any event be
effective against the Bank unless the same shall be in writing and signed by the
Bank, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given.

           SECTION 7.04 No Waiver; Remedies Cumulative.

           No failure on the part of the Bank to exercise, and no delay in
exercising, any right hereunder or under the Guaranty or any of the other
Documents shall operate as a waiver thereof; and no single or partial exercise
of any right hereunder or under the Guaranty shall preclude any other or further
exercise thereof or the exercise of any other right. To the extent permitted by
applicable law, the remedies herein and in the Guaranty are cumulative and not
exclusive of any remedies available under any other document or at law or in
equity.

           SECTION 7.05 Setoff.

           Regardless of the adequacy of any collateral, during the continuance
of any Event of Default, any deposits (general or specific, time or demand,
provisional or final, regardless of currency, maturity, or the branch of where
such deposits are held) or other sums credited by or due from any of the Bank to
the Company and any securities or other property of the Company in the
possession of the Bank may be applied to or set off against the payment of
Obligations of the Company and any and all other liabilities,

                                      -21-
<PAGE>
direct or indirect, absolute or contingent, due or to become due, now existing
or hereafter arising, of the Company to the Bank.

                                  ARTICLE VIII

                                  MISCELLANEOUS

           SECTION 8.01 Notices.

           All notices and other communications provided for hereunder shall be
in writing and sent by United States certified or registered mail, return
receipt requested, or by telegraph, telex, telecopier or private delivery
service, addressed as follows:

           If to the Bank:

                     Fleet National Bank
                     100 Federal Street
                     Boston, Massachusetts  02110
                     Attn:  Real Estate Division

           with a copy to:

                     Fleet National Bank
                     115 Perimeter Center Place, N.E.
                     Suite 500
                     Atlanta, Georgia  30346
                     Attn:  William Lamb
                     Telecopier: (770) 390-8434

           If to the Company:

                     New Plan Excel Realty Trust, Inc.
                     1120 Avenue of the Americas
                     New York, New York  10036
                     Attention:  John B. Roche, Chief Financial Officer
                     Telephone:  (212) 869-3000
                     Telecopier:  (212) 869-3989

           with a copy to:

                                      -22-
<PAGE>
                     New Plan Excel Realty Trust, Inc.
                     1120 Avenue of the Americas
                     New York, New York  10036
                     Attention:  Steven F. Siegel, Esq., General Counsel
                     Telephone:  (212) 869-3000
                     Telecopier:  (212) 302-4776

The time period in which a response to a notice must be given or any action
taken with respect thereto (if any), however, shall commence to run from the
date of receipt if personally delivered or sent by overnight courier, or if so
deposited in the United States Mail, the earlier of three (3) Business Days
following such deposit or the date of receipt as disclosed on the return
receipt. Rejection or other refusal to accept or the inability to deliver
because of changed address for which no notice was given shall be deemed to be
receipt of the notice sent. By giving at least fifteen (15) days prior notice
thereof, the Company or the Bank shall have the right from time to time and at
any time during the term of this Agreement to change their respective addresses
and each shall have the right to specify as its address any other address within
the United States of America.

           SECTION 8.02 Successors and Assigns.

           This Agreement shall inure to the benefit of and shall be binding
upon the parties hereto and their respective successors and assigns; provided
that this Agreement shall also inure to the benefit of the Participating Banks
as provided herein. The Company may not assign its rights under this Agreement
without the prior written consent of the Bank. The Company and the Bank intend
that, except as set forth in the first sentence of this Section, no other Person
shall have any claim or interest under this Agreement or right of action hereon
or hereunder.

           SECTION 8.03 Survival of Representations, Warranties and Covenants.

           All covenants, agreements, representations and warranties made herein
or in any of the other Documents or in any documents or other papers delivered
by or on behalf of the Company, or any Guarantor pursuant hereto or thereto
shall be deemed to have been relied upon by the Bank notwithstanding any
investigation heretofore or hereafter made by the Bank, and shall survive the
issuance by the Bank of the Letters of Credit, as herein contemplated, and shall
continue in full force and effect so long as any amount due under this Agreement
or the Letters of Credit or any of the other Documents remains outstanding. The
indemnification obligations of the Company provided herein and in the other
Documents shall survive the full repayment of amounts due and the termination of
the obligations of the Bank hereunder and thereunder to the extent provided
herein and therein. All statements contained in any certificate or other paper
delivered to the Bank at any time by or on behalf of the Company or any
Guarantor pursuant hereto or in connection with the transactions contemplated
hereby shall constitute representations and warranties by the Company hereunder.

                                      -23-
<PAGE>
           SECTION 8.04 Counterparts.

           The execution and delivery hereof by the Company and the Bank shall
constitute a contract between them for the uses and purposes herein set forth,
and this Agreement may be executed in any number of counterparts, with each
executed counterpart constituting an original and all counterparts together
constituting one agreement.

           SECTION 8.05 Costs, Expenses and Taxes.

           The Company agrees to pay on demand all costs and expenses of the
Bank in connection with the preparation, execution, delivery, interpretation and
administration of this Agreement, the Letters of Credit, the Guaranty and any
other Documents, including without limitation the reasonable fees and expenses
of counsel for the Bank with respect thereto and with respect to advising the
Bank as to its rights and responsibilities under this Agreement, the Letters of
Credit, the Guaranty and such other Documents, and all costs and expenses,
including without limitation reasonable counsel fees and expenses, if any, in
connection with the enforcement or preservation of rights under this Agreement,
the Letters of Credit, the Guaranty and such other Documents, or any litigation,
proceeding or dispute (whether arising hereunder or otherwise), in any way
related to the Bank's relationship with the Company or the Guarantor pursuant to
any of the Documents. In addition, the Company shall pay any and all stamp and
other taxes and fees payable or determined to be payable in connection with the
execution and delivery of this Agreement, the Letters of Credit, the Guaranty
and such other Documents, and shall indemnify and hold the Bank and the
Participating Banks harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such taxes
and fees. The covenants of this Section 8.05 shall survive payment or
satisfaction of the Obligations.

           SECTION 8.06 Amendments.

           This Agreement may be amended only by an instrument in writing
executed and delivered by the Company and the Bank

           SECTION 8.07 Severability; Interest Limitation.

           If any provision hereof is found by a court of competent jurisdiction
to be prohibited or unenforceable in any jurisdiction, it shall be ineffective
as to such jurisdiction only to the extent of such prohibition or
unenforceability, and such prohibition or unenforceability shall not invalidate
the balance of such provision as to such jurisdiction to the extent it is not
prohibited or unenforceable, nor invalidate such provision in any other
jurisdiction, nor invalidate the other provisions hereof, all of which shall be
liberally construed in order to effect the provisions of this Agreement.
Notwithstanding anything to the contrary herein contained, the total liability
of the Company for payment of interest pursuant hereto shall not exceed the
maximum amount, if any, of such interest permitted by applicable law to be
contracted for, charged or

                                      -24-
<PAGE>
received, and if any payments by the Company to the Bank include interest in
excess of such a maximum amount, the Bank shall apply such excess to the
reduction of the unpaid principal amount or other sums due from the Company
pursuant hereto, or if none is due, such excess shall be refunded to the
Company; provided that, to the extent permitted by applicable law, in the event
the interest is not collected, is applied to principal or is refunded pursuant
to this sentence and interest thereafter payable pursuant hereto shall be less
than such maximum amount, then such interest thereafter so payable shall be
increased up to such maximum amount to the extent necessary to recover the
amount of interest, if any, theretofore uncollected, applied to principal or
refunded pursuant to this sentence. Any such application or refund shall not
cure or waive any Event of Default. In determining whether or not any interest
payable under this Agreement exceeds the highest rate permitted by law, any
nonprincipal payment (except payments specifically stated in this Agreement to
be "interest") shall be deemed, to the extent permitted by applicable law, to be
an expense, fee, premium or penalty rather than interest. All interest paid or
agreed to be paid to the Bank shall, to the extent permitted by applicable law,
be amortized, prorated, allocated and spread throughout the full period until
payment in full of all of the Obligations of the Company (including the period
of any renewal or extension thereof) so that the interest thereon for such full
period shall not exceed the maximum amount permitted by applicable law. This
section shall control all agreements between the Company and the Bank.

           SECTION 8.08 Complete Agreement.

           TAKEN TOGETHER WITH THE GUARANTY AND THE OTHER DOCUMENTS DELIVERED IN
COMPLIANCE HEREWITH, THIS AGREEMENT IS A COMPLETE MEMORANDUM OF THE AGREEMENT OF
THE COMPANY AND THE BANK AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. WAIVERS OR MODIFICATIONS OF ANY
PROVISION HEREOF MUST BE IN WRITING SIGNED BY THE PARTY TO BE CHARGED WITH THE
EFFECT THEREOF.

           SECTION 8.09 Conflicts.

           Insofar as possible the provisions of this Agreement shall be deemed
complementary to the terms of the Guaranty and the other Documents but in the
event of conflict the terms hereof shall control to the extent such are
enforceable under applicable law.

           SECTION 8.10 Governing Law; Consent to Jurisdiction and Service.

           THIS AGREEMENT AND EACH OF THE OTHER DOCUMENTS ARE CONTRACTS UNDER
THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN
ACCORDANCE WITH AND

                                      -25-
<PAGE>
GOVERNED BY THE LAWS OF SUCH STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS
OR CHOICE OF LAW). THE COMPANY AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
AGREEMENT OR ANY OF THE OTHER DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENT TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE SERVICE OF PROCESS IN ANY SUCH
SUIT BEING MADE UPON THE COMPANY BY MAIL AT THE ADDRESS SPECIFIED IN SECTION
8.01. THE COMPANY HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN
AN INCONVENIENT COURT.

           SECTION 8.11 Waiver of Jury Trial and Certain Damage Claims.

           EACH OF THE COMPANY AND THE BANK HEREBY WAIVES ITS RIGHT TO A JURY
TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND
OBLIGATIONS. EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED BY LAW, THE COMPANY
HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE COMPANY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE BANK HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER DOCUMENTS TO WHICH THEY ARE PARTIES BY,
AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION
8.11. THE COMPANY ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS
SECTION 8.11 WITH ITS LEGAL COUNSEL AND THAT THE COMPANY AGREES TO THE FOREGOING
AS ITS FREE, KNOWING AND VOLUNTARY ACT.

           SECTION 8.12 Table of Contents and Headings.

           The Table of Contents and Section headings of this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

                                      -26-
<PAGE>
           SECTION 8.13 Participations.

           Notwithstanding any other provision of this Agreement, the Company
understands that the Bank may at any time enter into one or more participation
agreements ("Participation Agreements") with other banks ("Participating Banks')
whereby the Bank will allocate to the Participating Banks certain percentages of
the payment obligations of the Company and the Guarantors under this Agreement,
the Guaranty and the other Documents and the funding obligations of the Bank
under the Letters of Credit. The Company acknowledges, that, for the convenience
of all parties, this Agreement is being entered into with the Bank only and that
the Company's obligations under this Agreement and the other Documents and the
Guarantors' obligations under the Guaranty are and will be undertaken for the
benefit of, and as an inducement to, the Participating Banks as well as the
Bank. Without limiting the foregoing, the Company acknowledges that Sections
2.02(e), 2.05 and the indemnity under Section 8.05 are also for the benefit of
the Participating Banks, and agrees to make any payments required by such
provisions for the account of any one or more Participating Banks on demand of
the Bank. Notwithstanding the foregoing, the Company shall not be required to
respond to requests or inquiries made by any of the Participating Banks unless
such requests or inquiries are made through the Bank. The Company hereby waives
any right of setoff it may at any time have against the Bank or any
Participating Bank as a result of the participations of the Participating Banks
in the payment obligations of the Company under this Agreement. The Bank agrees
to give written notice to the Company identifying each Participating Bank with
whom the Bank has entered into a Participation Agreement from time to time;
provided that failure to give any such notice shall not affect the rights of any
Participating Bank or result in any liability of the Bank.

           SECTION 8.14 Relationship.

           The relationship between the Bank and the Company is solely that of a
lender and borrower, and nothing contained herein or in any of the other
Documents shall in any manner be construed as making the parties hereto
partners, joint venturers or any other relationship other than lender and
borrower.

           SECTION 8.15 Time of the Essence.

           Time is of the essence with respect to each and every covenant,
agreement and obligation of the Company and the Guarantors under this Agreement
and the other Documents.

           SECTION 8.16 Acknowledgment of Indemnity Obligations.

           THE COMPANY ACKNOWLEDGES THAT THIS AGREEMENT CONTAINS INDEMNITY
OBLIGATIONS OF THE COMPANY.

                                      -27-
<PAGE>
           IN WITNESS WHEREOF, the Company and the Bank have caused this
Reimbursement Agreement to be duly executed and delivered as of the date first
above written.

                                 NEW PLAN EXCEL REALTY TRUST, INC.

                                 By:   /s/ Steven F. Siegel
                                    -----------------------------------------
                                       Name:  Steven F. Siegel
                                       Title: Sr. VP

                                 FLEET NATIONAL BANK

                                 By:   /s/ Bill Lamb
                                     -----------------------------------------
                                       Name:  Bill Lamb
                                       Title: Vice President
<PAGE>
                                    EXHIBIT A

                            FORM OF LETTER OF CREDIT

FLEET NATIONAL BANK
1 FLEET WAY, 2ND FLOOR
SCRANTON, PA 18507
ATTN:  TRADE SERVICES DEPT. - STANDBY UNIT

                                            DATE:

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER _______________

BENEFICIARY:                              APPLICANT:   NEW PLAN EXCEL REALTY
                                                       TRUST, INC.
___________________________
___________________________
___________________________
___________________________

AMOUNT:  USD ____________
EXPIRY DATE: ______________
EXPIRY PLACE: OUR COUNTERS

GENTLEMEN:

WE HEREBY ISSUE THIS CLEAN IRREVOCABLE LETTER OF CREDIT NO. ________ IN YOUR
FAVOR, FOR THE ACCOUNT OF NEW PLAN EXCEL REALTY TRUST, INC. FOR UP TO AN
AGGREGATE AMOUNT OF USD _____________, AVAILABLE BY YOUR DRAFT DRAWN ON US AT
SIGHT AND THE ORIGINAL OF THIS LETTER OF CREDIT AND AMENDMENT(S), IF ANY.

PARTIAL DRAWINGS ARE PERMITTED.

DRAFT(S) MUST STATE: "DRAWN UNDER FLEET NATIONAL BANK STANDBY L/C NO.
____________ DATED ______________."

WE HEREBY AGREE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE
TERMS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON DUE PRESENTATION TO
US.

THIS LETTER OF CREDIT IS TRANSFERABLE IN FULL AND NOT IN PART. SHOULD YOU WISH
TO EFFECT A TRANSFER UNDER THIS CREDIT, SUCH TRANSFER WILL BE SUBJECT TO THE
RETURN TO US OF THE ORIGINAL CREDIT INSTRUMENT, ACCOMPANIED BY OUR FORM OF
TRANSFER, ATTACHED HERETO AS ANNEX A, PROPERLY COMPLETED AND SIGNED BY AN
AUTHORIZED SIGNATORY OF YOUR FIRM, BEARING YOUR BANKERS STAMP AND SIGNATURE
AUTHENTICATION.

WE HEREBY AGREE THAT YOU SHALL HAVE THE RIGHT UPON TWO (2) BUSINESS DAYS' PRIOR
WRITTEN NOTICE IN THE FORM ATTACHED HERETO AS ANNEX B, PROPERLY COMPLETED AND
SIGNED BY AN AUTHORIZED SIGNATORY OF YOUR FIRM, TO HAVE THIS LETTER OF CREDIT
TERMINATED AND REPLACED BY TWO OR MORE REPLACEMENT LETTERS OF CREDIT IN FAVOR OF
SUCH BENEFICIARIES AND IN SUCH AMOUNTS AS SHALL BE SPECIFIED IN THE NOTICE TO
US; PROVIDED, HOWEVER, THAT:

         (A)      AFTER GIVING EFFECT TO THE ISSUANCE OF THE REPLACEMENT LETTERS
                  OF CREDIT, WE SHALL NOT HAVE MORE THAN TWELVE (12) LETTERS OF
                  CREDIT
<PAGE>
                  OUTSTANDING FOR THE ACCOUNT OF NEW PLAN EXCEL REALTY TRUST,
                  INC. PURSUANT TO THAT CERTAIN REIMBURSEMENT AGREEMENT DATED AS
                  OF AUGUST 24, 2001 BETWEEN US AND NEW PLAN EXCEL REALTY TRUST,
                  INC.;

         (B)      THE AGGREGATE AMOUNT OF THE REPLACEMENT LETTERS OF CREDIT
                  SHALL NOT EXCEED THE AMOUNT OF THIS LETTER OF CREDIT STATED
                  ABOVE;

         (C)      THE EXPIRY DATE OF THE REPLACEMENT LETTERS OF CREDIT SHALL NOT
                  BE LATER THAN THE EXPIRY DATE STATED ABOVE;

         (D)      THE REPLACEMENT LETTERS OF CREDIT SHALL OTHERWISE BE ISSUED IN
                  THE SAME FORM AS THIS LETTER OF CREDIT AND SHALL BE
                  TRANSFERABLE AS SET FORTH ABOVE, BUT SHALL PROVIDE THAT THEY
                  SHALL BE INOPERATIVE UNTIL WE SHALL HAVE RECEIVED THE ORIGINAL
                  OF THIS LETTER OF CREDIT AT THE ADDRESS SPECIFIED ABOVE; AND

         (E)      UPON ISSUANCE OF THE REPLACEMENT LETTERS OF CREDIT AND OUR
                  RECEIPT OF THE ORIGINAL OF THIS LETTER OF CREDIT, WE SHALL BE
                  ABSOLUTELY AND UNCONDITIONALLY RELEASED OF ALL LIABILITY AND
                  OBLIGATIONS UNDER THIS LETTER OF CREDIT AND FROM ANY AND ALL
                  OTHER OBLIGATIONS AND LIABILITIES RELATING TO THE ISSUANCE AND
                  MAINTENANCE OF THIS LETTER OF CREDIT.

EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS CREDIT IS ISSUED SUBJECT TO
THE INTERNATIONAL STANDBY PRACTICES (ISP98), INTERNATIONAL CHAMBER OF COMMERCE
PUBLICATION NO. 590.

FORM AND CONTENTS ACCEPTED BY:

__________________________
AUTHORIZED SIGNATURE FOR
<PAGE>
                                     ANNEX A
                             INSTRUCTION TO TRANSFER
                     [TO BE TYPED ON BENEFICIARY LETTERHEAD]

FLEET NATIONAL BANK
1 FLEET WAY, 2ND FLOOR
SCRANTON, PA 18507
ATTN: TRADE SERVICES DEPT.-STANDBY UNIT

RE: CREDIT ISSUED BY FLEET NATIONAL BANK                   DATE:_____________
LETTER OF CREDIT NUMBER ________________________

GENTLEMEN:

For value received. the undersigned beneficiary hereby irrevocably transfers to:

________________________________________________________________________________
                              (Name of Transferee)

________________________________________________________________________________
                                    (Address)

all rights of the undersigned beneficiary to draw under the above Letter of
Credit in its entirety.

By this transfer, all rights of the undersigned beneficiary in such Letter of
Credit are transferred to the Transferee and the Transferee shall have the sole
rights as Beneficiary thereof, including sole rights relating to any amendments
whether increases or extensions or other amendments and whether now existing or
hereafter made. All amendments are to be advised direct to the Transferee
without necessity of any consent of or notice to the undersigned beneficiary.

The original of such Letter of Credit is returned herewith and we ask you to
endorse the transfer on the reverse thereof and forward it directly to the
Transferee with your customary notice of transfer.

                                                Very truly yours,
* SIGNATURE AUTHENTICATED           (type beneficiary name as appears on credit)

_________________________________         ______________________________________
           (Bank)                         (Signature of Beneficiary)
                                          name and title to be typed underneath)

_________________________________
     (Authorized Signature)
(name and title to be typed underneath)

*BY AUTHENTICATING SIGNATURE YOU ARE GUARANTEEING THAT THE INDIVIDUAL SIGNING IS
AUTHORIZED TO SIGN FOR THE TRANSFEROR, THE PARTY ON WHOSE LETTERHEAD THIS FORM
APPEARS.

           FOR FULL TRANSFER (TRANSFER IN ITS ENTIRETY: ALL AMENDMENTS
       INCLUDING INCREASES AND EXTENSIONS, IF ANY, APPLICABLE TO TRANSFER)
<PAGE>
                                     ANNEX B

                          FORM OF NOTICE OF REPLACEMENT

                                            Irrevocable Standby Letter of Credit
                                         No. __________, dated ____________,
                                            in the amount of $_____________
                                                    (the "Letter of Credit")

FLEET NATIONAL BANK
1 FLEET WAY, 2ND FLOOR
SCRANTON, PA  18507
ATTN:  TRADE SERVICES DEPT.-STANDBY UNIT

           The undersigned, a duly authorized officer of ______________
("Beneficiary"), requests that the Letter of Credit be replaced by ___ separate
Letters of Credit issued in favor of the following beneficiaries and in the
following amounts:

           Name and Address                                   Amount

Dated: ____________________

                                                  _____________________________
                                                  Beneficiary

                                                  By:__________________________

                                                     Title:____________________

cc:        Mr. John B. Roche,
           Steven F. Siegel, Esq.
           New Plan Excel Realty Trust, Inc.
           1120 Avenue of the Americas
           New York, New York  10036
<PAGE>
                                    EXHIBIT B

                        FORM OF LETTER OF CREDIT REQUEST

Fleet National Bank
115 Perimeter Center Place, Suite 500
Atlanta, Georgia  30346
Attn:  William Lamb
Fax: (770) 390-8434

Ladies and Gentlemen:

           Pursuant to the provisions of Section 2.01(a) of the Reimbursement
Agreement dated as of August 24, 2001, as from time to time in effect (the
"Agreement"), between New Plan Excel Realty Trust, Inc. (the "Company") and
Fleet National Bank (the "Bank"), the Company hereby requests and certifies as
follows:

           1. Letter of Credit. The Company hereby requests a Letter of Credit
to be issued under Section 2.01(a) of the Agreement:

                     Principal Amount:  $

                     Beneficiary:

           2. No Default. The undersigned Authorized Officer of the Company
certifies that the Company is and will be in compliance with all covenants under
the Documents after giving effect to the issuance of the Letter of Credit
requested hereby.

           3. Representations True. Each of the representations and warranties
made by or on behalf of the Company and the Guarantors contained in the
Agreement, the Guaranty or in the other Documents or in any document or
instrument delivered pursuant to or in connection with the Agreement was true
and correct in all material respects as of the date as of which it was made and
shall also be true and correct in all material respects at and as of the
issuance date for the Letter of Credit requested hereby, with the same effect as
if made at and as of such issuance date (except to the extent of changes
resulting from transactions contemplated or permitted by the Agreement, the
Guaranty and the other Documents and changes occurring in the ordinary course of
business that singly or in the aggregate do not have a Material Adverse Effect,
and except to the extent that such representations and warranties relate
expressly to an earlier date) and no Default or Event of Default has occurred
and is continuing.

           4. Other Conditions. All other conditions to the issuance of the
Letter of Credit requested hereby set forth in Articles 2 and 4 of the Agreement
have been satisfied.
<PAGE>
           5. Issuance Date. Except to the extent, if any, specified by notice
actually received by the Bank prior to the issuance date specified above, the
foregoing representations and warranties shall be deemed to have been made by
the Company on and as of such issuance date.

           6. Definitions. Terms defined in the Agreement are used herein with
the meanings so defined.

           IN WITNESS WHEREOF, the Company has caused this request to be duly
executed and delivered this _____ day of ___________, 200__.

                                            NEW PLAN EXCEL REALTY TRUST, INC.

                                            By: ______________________________
                                                  Name:
                                                  Title:
<PAGE>
                                    EXHIBIT C

                            FORM OF EXTENSION REQUEST

Fleet National Bank
115 Perimeter Center Place, Suite 500
Atlanta, Georgia  30346
Attn:  William Lamb
Fax:  (770) 390-8434

Ladies and Gentlemen:

           Pursuant to the provisions of Section 2.06 of the Reimbursement
Agreement dated as of August 24, 2001, as from time to time in effect (the
"Agreement"), between New Plan Excel Realty Trust, Inc. (the "Company") and
Fleet National Bank (the "Bank"), the Company hereby requests and certifies as
follows:

           1. Extension. The Company hereby requests that the Commitment
Expiration Date be extended from __________, 200_ to __________, 200_ pursuant
to Section 2.06 of the Agreement. This request constitutes the exercise of the
__________ (first, second, etc.) extension option.

           2. No Default. The undersigned Authorized Officer of the Company
certifies that the Company is and on the Commitment Expiration Date (as
determined without regard to this request) will be in compliance with all
covenants under the Documents.

           3. Representations True. Each of the representations and warranties
made by or on behalf of the Company and the Guarantors contained in the
Agreement, in the other Documents or in any document or instrument delivered
pursuant to or in connection with the Agreement was true and correct in all
material respects as of the date as of which it was made and shall also be true
and correct in all material respects on the Commitment Expiration Date (as
determined without regard to this request) with the same effect as if made at
and as of the Commitment Expiration Date (except to the extent of changes
resulting from transactions contemplated or permitted by the Agreement and the
other Documents and changes occurring in the ordinary course of business that
singly or in the aggregate do not have a Material Adverse Effect, and except to
the extent that such representations and warranties relate expressly to an
earlier date) and no Default or Event of Default has occurred and is continuing.

           4. Other Conditions. All other conditions to the extension of the
Commitment Expiration Date set forth in Section 2.06 of the Agreement have been
satisfied.

           5. Commitment Expiration Date. Except to the extent, if any,
specified by notice actually received by the Bank prior to the issuance date
specified above, the
<PAGE>
foregoing representations and warranties shall be deemed to have been made by
the Company on and as of the Commitment Expiration Date (as determined without
regard to this request).

           6. Definitions. Terms defined in the Agreement are used herein with
the meanings so defined.

           IN WITNESS WHEREOF, the Company has caused this request to be duly
executed and delivered this _____ day of ___________, 200__.

                                      NEW PLAN EXCEL REALTY TRUST, INC.

                                      By: __________________________________
                                            Name:
                                            Title:
<PAGE>
                                    EXHIBIT D

                           FORM OF NOTICE OF REDUCTION

                                           Irrevocable Standby Letter of Credit
                                       No. __________, dated ____________,
                                           in the amount of $_____________
                                           (the "Letter of Credit Amount")

FLEET NATIONAL BANK
1 FLEET WAY, 2ND FLOOR
SCRANTON, PA  18507
ATTN: TRADE SERVICES DEPT. - STANDBY UNIT

           The undersigned, a duly authorized officer of ______________
("Beneficiary"), certifies as follows to Fleet National Bank as issuer of the
above-referenced letter of credit (the "Letter of Credit"):

           The Beneficiary consents to a reduction in the Letter of Credit
Amount to ______________ ($____________).

Dated: ____________________

                                                _______________________________
                                                Beneficiary

                                                By:____________________________

                                                Title:_________________________

cc:        Mr. John B. Roche,
           Steven F. Siegel, Esq.
           New Plan Excel Realty Trust, Inc.
           1120 Avenue of the Americas
           New York, New York  10036
<PAGE>
                                   EXHIBIT E

                              NOTICE OF AMENDMENT

                                           Irrevocable Standby Letter of Credit
                                       No. ____________, dated ____________,
                                              in the amount of $____________
                                             (the "Letter of Credit Amount")

________________________
________________________
________________________
________________________

Dear Sir:

           Reference is hereby made to that certain Irrevocable Standby Letter
of Credit No. ________, dated ____________ , established by us in your favor
(the "Letter of Credit"). We hereby notify you that, in accordance with the
terms of the Letter of Credit and that certain Reimbursement Agreement, dated as
of August 24, 2001, between New Plan Excel Realty Trust, Inc. and us, the Letter
of Credit Amount has been reduced to ____________________ ($__________).

           This letter should be attached to the Letter of Credit and made a
part thereof.

                                                 FLEET NATIONAL BANK

                                                 By:________________________
                                                 Its: ________________________

cc:        Mr. John B. Roche,
           Steven F. Siegel, Esq.
           New Plan Excel Realty Trust, Inc.
           1120 Avenue of the Americas
           New York, New York  10036
<PAGE>
                                    EXHIBIT F

                      FORM OF LETTER OF CREDIT APPLICATIONex10-5

 

EXHIBIT 10.5

OTG SOFTWARE, INC.

Employment Agreement

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) by and between OTG Software,
Inc., a Delaware corporation (the “Company”), and F. William Caple (the
“Executive”) is made as of January 1, 2002 (the “Effective Date”).

     WHEREAS, the Company desires to employ the Executive, and the Executive
desires to be employed by the Company;

     NOW, THEREFORE, in consideration of the mutual covenants and promises
contained in this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties to this
Agreement, the parties agree as follows:

     1.     Key Definitions.

     As used herein, the following terms shall have the following respective
meanings:

             1.1       “Change in Control” means an event or occurrence set forth in any one
or more of subsections (a) through (c) below of this Section 1.1 (including an
event or occurrence that constitutes a Change in Control under one of such
subsections but is specifically exempted from another such subsection):

     
                  

(a)       the acquisition by an individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any
capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 50% or more of either (i) the then-outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (ii) the
combined voting power of the then-outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not constitute a Change in
Control: (w) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an
underwriter or agent of the Company); (x) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company; (y) any acquisition by any corporation
pursuant to a Business Combination (as defined below) which complies with
clauses (i) and (ii) of subsection (c) of this Section 1.1; or (z) any
acquisition by Richard A. Kay, any member of Mr. Kay’s family, or any trust
controlled by Richard A. Kay or any member of Mr. Kay’s family, of any shares
of the Company’s common stock; or

 

 

     
                  

(b)       such time as the Continuing Directors (as defined below) do not
constitute a majority of the board of directors of the Company (the “Board”)
(or, if applicable,
the board of directors of a successor corporation to the Company), where
the term “Continuing Director” means at any date a member of the Board (i) who
was a member of the Board on the date of the execution of this Agreement or
(ii) who was nominated or elected subsequent to such date by at least a
majority of the directors who were Continuing Directors at the time of such
nomination or election or whose election to the Board was recommended or
endorsed by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election; provided, however, that there shall
be excluded from this clause (ii) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board; or

     
                  

(c)       the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in
one or a series of transactions (a “Business Combination”), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who
were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively; and (ii)
no Person (excluding the Acquiring Corporation or any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 20% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors (except to the extent
that such ownership existed prior to the Business Combination).

             1.2      “Change in Control Date” means the first date during the Employment
Period (as defined in Section 2) on which a Change in Control occurs. Anything
in this Agreement to the contrary notwithstanding, if (a) a Change in Control
occurs, (b) the Executive’s employment with the Company is terminated prior to
the date on which the Change in Control occurs, and (c) it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change in Control or (ii) otherwise arose in connection with or in
anticipation of a Change in Control, then for all purposes of this Agreement
the Change in Control Date shall mean the date immediately prior to the date of
such termination of employment.

2

 

             1.3      “Cause” means:

     
                  
(a)       the Executive’s willful and actual breach of the restrictions,
obligations, or duties which he is required to satisfy or perform under this
Agreement; or

     
                  
(b)       the Executive’s engaging in any of the acts specified in Exhibit A
hereto.

             1.4      “Good Reason” means the occurrence, without the Executive’s written
consent, of any of the events or circumstances set forth in clauses (a) through
(f) below. Notwithstanding the occurrence of any such event or circumstance,
such occurrence shall not be deemed to constitute Good Reason if, prior to the
Date of Termination specified in the Notice of Termination (each as defined in
Section 8.1) given by the Executive in respect thereof, such event or
circumstance has been fully corrected and the Executive has been reasonably
compensated for any losses or damages resulting therefrom (provided that such
right of correction by the Company shall only apply to the first Notice of
Termination for Good Reason given by the Executive).

     
                  

(a)       the assignment to the Executive of duties inconsistent in any material
respect with the Executive’s position (including status, offices, titles and
reporting requirements), authority or responsibilities as Executive Vice
President in effect immediately prior to the Effective Date, or any other
action or omission by the Company which results in a material diminution in
such position, authority or responsibilities as Executive Vice President;

     
                  

(b)       a material reduction, without the Executive’s written consent, in the
Executive’s Target Compensation (as defined below) as in effect on the
Effective Date or as the same was or may be increased thereafter from time to
time; for the purposes hereof, the Executive’s “Target Compensation” shall mean
the sum of the Executive’s Base Salary (as defined below) and the Executive’s
Target Bonus (as defined below);

     
                  

(c)       the failure by the Company to continue in effect any material
compensation or benefit plan or program (including without limitation any life
insurance, medical, health and accident or disability plan and any vacation or
automobile program or policy) (a “Benefit Plan”) in which the Executive
participates or which is applicable to the Executive immediately prior to the
Effective Date, unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) has been made with respect to such plan or
program;

     
                  

(d)       a change by the Company in the location at which the Executive
performs his principal duties for the Company to a new location that is both
(i) outside a radius of 50 miles from the Executive’s principal residence
immediately prior to the Effective Date and (ii) more than 50 miles from the
location at which the Executive performed his principal duties for the Company
immediately prior to the Effective Date;

     
                  

(e)       the failure of the Company to obtain the agreement from any successor
to the Company to assume and agree to perform this Agreement, as required by
Section 13.1; or

3

 

     
                  

(f)       any failure of the Company to pay or provide to the Executive any
portion of the Executive’s compensation or benefits due under this Agreement or
any Benefit
Plan within seven days of the date such compensation or benefits are due,
or any material breach by the Company of this Agreement or any employment
agreement with the Executive.

     The Executive’s right to terminate his employment for Good Reason shall
not be affected by his incapacity due to physical or mental illness.

     2.     Term of Employment. The Company hereby agrees to employ the Executive,
and the Executive hereby accepts employment with the Company, upon the terms
set forth in this Agreement, for the period commencing as of the Effective Date
and continuing in effect through December 31, 2002 (such period, as it may be
extended, the “Employment Period”); provided, however that, unless sooner
terminated in accordance with the provisions of Section 7, commencing on
January 1, 2003 and each January 1 thereafter, the Employment Period shall be
automatically extended for one additional year unless, not later than 90 days
prior to the scheduled expiration of the Employment Period (or any extension
thereof), the Company or the Executive shall have given the other party written
notice that the Employment Period will not be extended.

     3.     Title; Capacity. The Executive shall serve as Executive Vice President
or in such other reasonably comparable position as the Board may determine from
time to time. The Executive shall be based at the Company’s headquarters in
Rockville, Maryland. The Executive shall be subject to the supervision of, and
shall have such authority as is delegated to the Executive by, the Board or
such officer of the Company as may be designated by the Board. The Executive
hereby accepts such employment and agrees to undertake the duties and
responsibilities inherent in such position and such other duties and
responsibilities as the Board or its designee shall from time to time
reasonably assign to the Executive. The Executive agrees to devote, during
ordinary and customary business hours, his entire business time, attention and
energies to the business and interests of the Company during the Employment
Period. The Executive agrees to abide by the rules, regulations, instructions,
personnel practices and policies of the Company and any changes therein which
may be adopted from time to time by the Company.

     4.     Compensation and Benefits.

             4.1      Salary. The Company shall pay the Executive in accordance with the
Company’s customary payroll practices, an annual base salary of $250,000 for
the period commencing on the Effective Date and ending on December 31, 2002
(the “Base Salary”). Such Base Salary shall be subject to adjustment
thereafter as determined by the Board.

             4.2      Bonus. Subject to the provisions of Exhibit B attached hereto, the
Company shall pay the Executive, on or about each December 31 during the
Employment Period and in no event later than five days after the completion of
the Company’s audit for such year, an annual performance bonus (the “Bonus”).

4

 

             4.3      Fringe Benefits. The Executive shall be entitled to participate in
all bonus and benefit programs that the Company establishes and makes available
to its employees, if any, to the extent that Executive’s position, tenure,
salary, age, health and other qualifications make
him eligible to participate. The Executive shall be entitled to four (4)
weeks paid vacation per year, to be taken at such times as may be approved by
the Board or its designee.

             4.4      Reimbursement of Expenses. The Company shall reimburse the Executive
for all reasonable travel, entertainment and other expenses incurred or paid by
the Executive in connection with, or related to, the performance of his duties,
responsibilities or services under this Agreement, in accordance with policies
and procedures, and subject to limitations, adopted by the Company from time to
time.

             4.5      Withholding. All salary, bonus and other compensation payable to the
Executive shall be paid net of any applicable withholding taxes required under
federal, state or local law.

     5.     Change in Control. Except as expressly provided to the contrary in an
option agreement between the Company and the Executive, if the Change in
Control Date occurs during the Employment Period, then, effective upon the
Change in Control Date, one-half of the number of shares subject to each
outstanding option to purchase shares of Common Stock of the Company held by
the Executive which were not already vested shall be exercisable upon the
occurrence of such Change in Control and, the remaining one-half of such number
of shares shall continue to become vested in accordance with the original
vesting schedule set forth in such option, with one-half of the number of
shares that would otherwise have first become vested becoming so vested on each
subsequent vesting date in accordance with the original schedule.

     6.     Survival. Notwithstanding anything else herein to the contrary, the
provisions of Sections 10 and 11 shall survive the termination of this
Agreement.

     7.     Termination of Employment. The employment of the Executive by the
Company pursuant to this Agreement shall terminate upon the occurrence of any
of the following:

             7.1      Expiration of the Employment Period;

             7.2      At the election of the Company, for Cause, upon the Date of
Termination (as defined below) set forth in the Notice of Termination (as
defined below); provided, however, that in the Board’s reasonable judgment, the
Company may grant the Executive a period of thirty (30) days to cure any act or
omission that constitutes Cause under Section 1.3 hereof; such thirty (30) days
cure period, if any, shall begin by setting forth such a thirty (30) cure
period in the Notice of Termination; such

             7.3      Upon the death of the Executive;

             7.4      At the election of the Executive for Good Reason, upon the Date of
Termination set forth in the Notice of Termination; or

             7.5      At the election of either party, upon the Date of Termination set
forth in the Notice of Termination.

     8.     Notice of Termination of Employment.

5

 

             8.1      Any termination of the Executive’s employment by the Company or by the
Executive (other than due to the death of the Executive) shall be communicated
by a written notice to the other party hereto (the “Notice of Termination”),
given in accordance with Section 14. Any Notice of Termination shall: (i)
indicate the specific termination provision (if any) of this Agreement relied
upon by the party giving such notice; (ii) to the extent applicable, set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated; and
(iii) specify the Date of Termination (as defined below). The effective date
of an employment termination (the “Date of Termination”) shall be the close of
business on the date specified in the Notice of Termination (which date shall
be 60 days after the date of delivery of such Notice of Termination), in the
case of a termination other than one due to the Executive’s death, or the date
of the Executive’s death, as the case may be. In the event the Company fails
to satisfy the requirements of Section 8 regarding a Notice of Termination, the
purported termination of the Executive’s employment pursuant to such Notice of
Termination shall not be effective for purposes of this Agreement.

             8.2      The failure by the Executive or the Company to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting any such fact or circumstance in enforcing the Executive’s or
the Company’s rights hereunder.

             8.3      Any Notice of Termination for Cause given by the Company must be given
within 90 days of the occurrence of the event(s) or circumstance(s) which
constitute(s) Cause.

     9.     Effects of Termination.

             9.1      Stock Acceleration. Except as expressly provided in an option
agreement between the Company and the Executive, if (i) the Change in Control
Date occurs during the Employment Period, and (ii) within 12 months following
the Change in Control Date, the Executive’s employment with the Company is
terminated by the Company (other than for Cause) or by the Executive for Good
Reason, then, effective upon the Date of Termination, each outstanding option
to purchase shares of Common Stock of the Company held by the Executive shall
become immediately exercisable in full and will no longer be subject to a right
of repurchase by the Company.

             9.2      Compensation.

                      
 
(a)       Termination Without Cause or for Good Reason. If the Executive’s
employment with the Company is terminated by the Company (other than for Cause)
or by the Executive for Good Reason, then the Executive shall be entitled to
the following benefits:

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(i)       the Company shall pay to the Executive in a lump sum in cash on or
prior to the next regular pay-day after the Date of Termination the aggregate
of the
following amounts: the sum of (A) the Executive’s then-current Base Salary
through the Date of Termination and (B) the amount of any compensation
previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any accrued vacation pay, in each case to the extent not
previously paid (the sum of the amounts described in clauses (A) and (B) shall
be hereinafter referred to as the “Accrued Obligations”);

     
                    
         

(ii)       in exchange for a severance agreement and release substantially in
the form attached hereto as Exhibit C, for 12 months after the Date of
Termination, the Company shall pay the Executive, the Executive’s then-current
annual Base Salary bi-weekly;

     
                    
         

(iii)      in exchange for a severance agreement and release substantially in
the form attached hereto as Exhibit C, for 12 months after the Date of
Termination, or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, the Company shall continue to
provide benefits to the Executive and the Executive’s family at least equal to
those which would have been provided to them if the Executive’s employment had
not been terminated, in accordance with the applicable Benefit Plans in effect
on the Effective Date or, if more favorable to the Executive and his family, in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies; provided, however, that if the
Executive becomes reemployed with another employer, then the Company shall no
longer be required to provide such benefits to the Executive and his family;

     
                    
         

(iv)       to the extent not previously paid or provided, the Company shall
timely pay or provide to the Executive any other amounts or benefits required
to be paid or provided or which the Executive is eligible to receive following
the Executive’s termination of employment under any plan, program, policy,
practice, contract or agreement of the Company and its affiliated companies
(such other amounts and benefits described in this clause (iv) shall be
hereinafter referred to as the “Other Benefits”); and

     
                    
         

(v)       for purposes of determining eligibility (but not the time of
commencement of benefits) of the Executive for retiree benefits to which the
Executive is entitled, the Executive shall be considered to have remained
employed by the Company until 12 months after the Date of Termination.

                      
 

(b)       Resignation without Good Reason. If the Executive voluntarily
terminates his employment with the Company, excluding a termination for Good
Reason, then the Company shall (i) pay the Executive (or his estate, if
applicable), in a lump sum in cash on or prior to the next regular pay-day
after the Date of Termination, the Accrued Obligations and (ii) timely pay or
provide to the Executive the Other Benefits.

                      
 

(c)       Termination for Cause. If the Company terminates the Executive’s
employment with the Company for Cause, then the Company shall (i) on or prior
to the next regular pay-day after the Date of Termination pay the Executive (or
his estate, if applicable), in a lump sum in cash, the Accrued Obligations, to
the extent not previously paid, and (ii) timely pay or provide to the Executive
the Other Benefits. Any termination for Cause must be made by the Board of
Directors of the Company.

7

 

             9.3      Taxes.

                      
 

(a)       In the event that the Company undergoes a “Change in Ownership or
Control” (as defined below, and different from the defined Term “Change in
Control”), the Company shall, within 30 days after each date on which the
Executive becomes entitled to receive (whether or not then due) a Contingent
Compensation Payment (as defined below) relating to such Change in Ownership or
Control, determine and notify the Executive (with reasonable detail regarding
the basis for its determinations) (i) which of the payments or benefits due to
the Executive (under this Agreement or otherwise) following such Change in
Ownership or Control constitute Contingent Compensation Payments, (ii) the
amount, if any, of the excise tax (the “Excise Tax”) payable pursuant to
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), by
the Executive with respect to such Contingent Compensation Payment and (iii)
the amount of the Gross-Up Payment (as defined below) due to the Executive with
respect to such Contingent Compensation Payment. Within 30 days after
delivery of such notice to the Executive, the Executive shall deliver a
response to the Company (the “Executive Response”) stating either (A) that he
agrees with the Company’s determination pursuant to the preceding sentence or
(B) that he disagrees with such determination, in which case he shall indicate
which payment and/or benefits should be characterized as a Contingent
Compensation Payment, the amount of the Excise Tax with respect to such
Contingent Compensation Payment and the amount of the Gross-Up Payment due to
the Executive with respect to such Contingent Compensation Payment. The amount
and characterization of any item in the Executive Response shall be final;
provided, however, that in the event that the Executive fails to deliver an
Executive Response on or before the required date, the Company’s initial
determination shall be final. Within 90 days after the due date of each
Contingent Compensation Payment to the Executive, the Company shall pay to the
Executive, in cash, the Gross-Up Payment with respect to such Contingent
Compensation Payment, in the amount determined pursuant to this Section 9.3(a).

                      
 

(b)       For purposes of this Section 9.3, the following terms shall have the
following respective meanings:

     
                    
         

(i)       “Change in Ownership or Control” shall mean a change in the ownership
or effective control of the Company or in the ownership of a substantial
portion of the assets of the Company determined in accordance with Section
280G(b)(2) of the Code.

     
                    
         

(ii)       “Contingent Compensation Payment” shall mean any payment (or benefit)
in the nature of compensation that is made or made available (under this
Agreement or otherwise) to a “disqualified individual” (as defined in Section
280G(c) of the Code) and that is contingent (within the meaning of Section
280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the
Company.

     
                    
         

(iii)      “Gross-Up Payment” shall mean an amount equal to the sum of (i) the
amount of the Excise Tax payable with respect to a Contingent Compensation
Payment and (ii) the amount necessary to pay all additional taxes imposed on
(or economically borne by) the Executive (including the Excise Taxes, state and
federal income taxes and all applicable withholding taxes) attributable to the
receipt of such Gross-Up Payment. For purposes of the preceding sentence, all taxes attributable to the receipt
of the Gross-Up Payment shall be computed assuming the application of the
maximum tax rates provided by law.

8

 

                      
 

(f)       The provisions of this Section 9.3 are intended to apply to any and
all payments or benefits available to the Executive under this Agreement or any
other agreement or plan of the Company under which the Executive receives
Contingent Compensation Payments.

     10.     Non-Competition and Non-Solicitation.

               10.1     Restricted Activities. While the Executive is employed by the
Company and for a period of one year after the termination or cessation of such
employment for any reason with respect to paragraph (a) below, and for a period
of two (2) years after the termination or cessation of such employment for any
reason with respect to paragraph (b) below, the Executive will not, directly or
indirectly, in the geographical areas that the Company or any of its
subsidiaries does business or has done business at the time of the Executive’s
departure:

                      
 

a.     Engage in any business or enterprise (whether as owner, partner,
officer, director, employee, consultant, investor, lender or otherwise, except
as the holder of not more than 1% of the outstanding stock of a publicly-held
company) that is competitive with the Company’s business, including but not
limited to any business or enterprise that develops, manufactures, markets, or
sells any product or service that is substantially similar to any product or
service developed, manufactured, marketed, sold or provided, or planned to be
developed, manufactured, marketed, sold or provided, by the Company or any of
its subsidiaries while the Executive was employed by the Company; or

                      
 

b.     Either alone or in association with others (i) solicit, or permit any
organization directly or indirectly controlled by the Executive to solicit, any
employee of the Company to leave the employ of the Company, or (ii) solicit for
employment or permit any organization directly or indirectly controlled by the
Executive to solicit for employment any person who was employed by the Company
at any time during the term of the Executive’s employment with the Company;
provided, that this clause (ii) shall not apply to any individual whose
employment with the Company has been terminated for a period of six months or
longer.

             10.2     Interpretation. If any restriction set forth in Section 10.1 is
found by any court of competent jurisdiction to be unenforceable because it
extends for too long a period of time or over too great a range of activities
or in too broad a geographic area, it shall be interpreted to extend only over
the maximum period of time, range of activities or geographic area as to which
it may be enforceable.

             10.3     Equitable Remedies. The restrictions contained in this Section 10
are necessary for the protection of the business and goodwill of the Company
and are considered by the Executive to be reasonable for such purpose. The
Executive agrees that any breach of this Section 10 is likely to cause the
Company substantial and irrevocable damage which is difficult to measure.
Therefore, in the event of any such breach or threatened breach, the Executive
agrees that the Company, in addition to such other remedies which may be
available, shall have the right to obtain an injunction from a court
restraining such a breach or threatened breach and
the right to specific performance of the provisions of this Section 10 and
the Executive hereby waives the adequacy of a remedy at law as a defense to
such relief.

9

 

     11.     Proprietary Information and Developments.

               11.1      Proprietary Information.

                      
   

a.     The Executive agrees that all information, whether or not in writing,
of a private, secret or confidential nature concerning the Company’s business,
business relationships or financial affairs (collectively, “Proprietary
Information”) is and shall be the exclusive property of the Company. By way of
illustration, but not limitation, Proprietary Information may include
inventions, products, processes, methods, techniques, formulas, compositions,
compounds, projects, developments, plans, research data, clinical data,
financial data, personnel data, computer programs, customer and supplier lists,
and contacts at or knowledge of customers or prospective customers of the
Company. The Executive will not disclose any Proprietary Information to any
person or entity other than employees of the Company or use the same for any
purposes (other than in the performance of his duties as an employee of the
Company) without written approval by an officer of the Company, either during
or after his employment with the Company, unless and until such Proprietary
Information has become public knowledge without fault by the Executive.

                      
   

b.     The Executive agrees that all files, letters, memoranda, reports,
records, data, sketches, drawings, laboratory notebooks, program listings, or
other written, photographic, or other tangible material containing Proprietary
Information, whether created by the Executive or others, which shall come into
his custody or possession, shall be and are the exclusive property of the
Company to be used by the Executive only in the performance of his duties for
the Company. All such materials or copies thereof and all tangible property of
the Company in the custody or possession of the Executive shall be delivered to
the Company, upon the earlier of (i) a request by the Company or (ii)
termination of his employment. After such delivery, the Executive shall not
retain any such materials or copies thereof or any such tangible property.

                      
   

c.     The Executive agrees that his obligation not to disclose or to use
information and materials of the types set forth in paragraphs (a) and (b)
above, and his obligation to return materials and tangible property, set forth
in paragraph (b) above, also extends to such types of information, materials
and tangible property of customers of the Company or suppliers to the Company
or other third parties who may have disclosed or entrusted the same to the
Company or to the Executive.

             11.2       Developments.

                      
   

a.     The Executive will make full and prompt disclosure to the Company of
all inventions, improvements, discoveries, methods, developments, software, and
works of authorship, whether patentable or not, which are created, made,
conceived or reduced to practice by him or under his direction or jointly with
others during his employment by the Company, whether or not during normal
working hours or on the premises of the Company (all of which are collectively
referred to in this Agreement as “Developments”).

10

 

                      
   

b.     The Executive agrees to assign and does hereby assign to the Company
(or any person or entity designated by the Company) all his right, title and
interest in and to all Developments and all related patents, patent
applications, copyrights and copyright applications. The Executive also hereby
waives all claims to moral rights in any Developments. However, this paragraph
(b) shall not apply to Developments which do not relate to the present or
planned business or research and development of the Company and which are made
and conceived by the Executive not during normal working hours, not on the
Company’s premises and not using the Company’s tools, devices, equipment or
Proprietary Information. The Executive understands that, to the extent this
Agreement shall be construed in accordance with the laws of any state which
precludes a requirement in an employee agreement to assign certain classes of
inventions made by an employee, this paragraph (b) shall be interpreted not to
apply to any invention which a court rules and/or the Company agrees falls
within such classes.

                      
   

c.     The Executive agrees to cooperate fully with the Company, both during
and after his employment with the Company, with respect to the procurement,
maintenance and enforcement of copyrights, patents and other intellectual
property rights (both in the United States and foreign countries) relating to
Developments. The Executive shall sign all papers, including, without
limitation, copyright applications, patent applications, declarations, oaths,
formal assignments, assignments of priority rights, and powers of attorney,
which the Company may deem necessary or desirable in order to protect its
rights and interests in any Development. The Executive further agrees that if
the Company is unable, after reasonable effort, to secure the signature of the
Executive on any such papers, any executive officer of the Company shall be
entitled to execute any such papers as the agent and the attorney-in-fact of
the Executive, and the Executive hereby irrevocably designates and appoints
each executive officer of the Company as his agent and attorney-in-fact to
execute any such papers on his behalf, and to take any and all actions as the
Company may deem necessary or desirable in order to protect its rights and
interests in any Development, under the conditions described in this sentence.

             11.3       United States Government Obligations. The Executive acknowledges
that the Company from time to time may have agreements with other parties or
with the United States Government, or agencies thereof, which impose
obligations or restrictions on the Company regarding inventions made during the
course of work under such agreements or regarding the confidential nature of
such work. The Executive agrees to be bound by all such obligations and
restrictions which are made known to the Executive and to take all appropriate
action necessary to discharge the obligations of the Company under such
agreements.

             11.4       Equitable Remedies. The restrictions contained in this Section 11
are necessary for the protection of the business and goodwill of the Company
and are considered by the Executive to be reasonable for such purpose. The
Executive agrees that any breach of this Section 11 is likely to cause the
Company substantial and irrevocable damage which is difficult to measure.
Therefore, in the event of any such breach or threatened breach, the Executive
agrees that the Company, in addition to such other remedies which may be
available, shall have the right to obtain an injunction from a court
restraining such a breach or threatened breach and the right to specific
performance of the provisions of this Section 11 and the Executive hereby
waives the adequacy of a remedy at law as a defense to such relief.

11

 

     12.     Other Agreements. The Executive represents that his performance of
all the terms of this Agreement and the performance of his duties as an
employee of the Company do not and will not breach any agreement with any prior
employer or other party to which the Executive is a party (including without
limitation any nondisclosure or non-competition agreement). Any agreement to
which the Executive is a party relating to nondisclosure, non-competition or
non-solicitation of employees or customers is listed on Exhibit D attached
hereto.

     13.     Successors.

             13.1       Successor to Company. The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company expressly
to assume and agree to perform this Agreement to the same extent that the
Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain an assumption of this Agreement at or prior to
the effectiveness of any succession shall be a breach of this Agreement and
shall constitute Good Reason if the Executive elects to terminate employment,
except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the Date of Termination. As
used in this Agreement, “Company” shall mean the Company as defined above and
any successor to its business or assets as aforesaid which assumes and agrees
to perform this Agreement, by operation of law or otherwise.

             13.2       Successor to Executive. This Agreement shall inure to the benefit of
and be enforceable by the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Executive should die while any amount would still be payable
to the Executive or his family hereunder if the Executive had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive’s estate.

     14.     Notice. All notices, instructions and other communications given
hereunder or in connection herewith shall be in writing. Any such notice,
instruction or communication shall be sent either (i) by registered or
certified mail, return receipt requested, postage prepaid, or (ii) prepaid via
a reputable nationwide overnight courier service, in each case addressed to the
Company, at 2600 Tower Oaks Boulevard, Rockville, MD 20852, and to the
Executive at 3808 Milestone Road, The Plains, Virginia 20198 (or to such other
address as either the Company or the Executive may have furnished to the other
in writing in accordance herewith). Any such notice, instruction or
communication shall be deemed to have been delivered five business days after
it is sent by registered or certified mail, return receipt requested, postage
prepaid, or one business day after it is sent via a reputable nationwide
overnight courier service. Either party may give any notice, instruction or
other communication hereunder using any other means, but no such notice,
instruction or other communication shall be deemed to have been duly delivered
unless and until it actually is received by the party for whom it is intended.

12

 

     15.    Miscellaneous.

             15.1       Employment by Subsidiary. For purposes of this Agreement, the
Executive’s employment with the Company shall not be deemed to have terminated
solely as a result of the Executive continuing to be employed by a wholly-owned
subsidiary of the Company.

             15.2       Severability. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

             15.3       Injunctive Relief. The Company and the Executive agree that any
breach of Sections 5 and 9 this Agreement by the Company is likely to cause the
Executive substantial and irrevocable damage and therefore, in the event of any
such breach, in addition to such other remedies which may be available, the
Executive shall have the right to specific performance and injunctive relief.

             15.4       Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the internal laws of the
State of Maryland, without regard to conflicts of law principles.

             15.5       Waivers. No waiver by the Executive at any time of any breach of, or
compliance with, any provision of this Agreement to be performed by the Company
shall be deemed a waiver of that or any other provision at any subsequent time.

             15.6       Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original but both of which together shall
constitute one and the same instrument.

             15.7       Entire Agreement. This Agreement sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto in respect of the
subject matter contained herein, including, without limitation, that certain
Employment Agreement, dated January 1, 1998, as amended to date between the
Executive and the Company (the “Prior Employment Agreement”); provided however,
that notwithstanding anything herein to the contrary, this Agreement does not
supersede the Incentive Stock Option Agreement between the Executive and the
Company, dated January 1, 1999 and the Incentive Stock Option Agreement between
the Executive and the Company dated May 31, 2001 (collectively, the “Option
Agreement”). Subject to the foregoing, any prior agreement of the parties
hereto in respect of the subject matter contained herein, including the Prior
Employment Agreement, but excluding the Option Agreement, is hereby terminated
and cancelled in all respects.

             15.8       Amendments. This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Executive.

13

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first set forth above.

	 	OTG SOFTWARE, INC.

	 	By:_________________________

	 	Name:_______________________

	 	Title:________________________

	 	EXECUTIVE

	 	____________________________

	 	F. William Caple

14

 

EXHIBIT A

	1.	 	Misappropriation of Company funds.
	2.	 	Embezzlement of Company funds.
	3.	 	Soliciting a Company customer’s business for personal or competitive gain.
	4.	 	Use or sale of illegal drugs in the work place.
	5.	 	Physical/mental/sexual abuse of any employee of the Company.
	6.	 	Criminal activity in the work place.
	7.	 	Theft or destruction of Company property.
	8.	 	Flagrant violation of Company policy/procedure.
	9.	 	Providing professional services to a competitor while in the employ of the
Company without the Company’s knowledge and prior express written consent.
	10.	 	Use of Company information for material personal gain.
	11.	 	Breach of any covenant or obligation contained in Section 11 of the
Agreement.

 

 

EXHIBIT B

     In January of each year during the Employment Period, the Compensation
Committee of the Board will set a target annual performance bonus (the “Target
Bonus”) for the Executive. The Executive’s Target Bonus for the year 2002 is
$80,000. The Executive shall be eligible to receive some or all of this Target
Bonus based upon his achievement of the Performance Goals as described below.
Determining whether the Executive has earned the Target Bonus shall be based on
the following three equally weighted components: (i) achieving the Company’s
budgeted revenue target for the year, (ii) achieving the Company’s budgeted
earnings per share target for the year, and (iii) achieving specified
management objectives for the year (each a “Performance Goal” and collectively
the “Performance Goals”). Each Performance Goal will correspond to, and govern
the payment of, one third (1/3) of the Executive’s Target Bonus (the
“Performance Goal Target Bonus”) and will be measured as described below.

     If the Executive does not achieve at least 91% of a Performance Goal, then
the Executive will not earn any portion of the related Performance Goal Target
Bonus for that year. If the Executive achieves 110% of a Performance Goal, the
Company shall pay the Executive 200% of the related Performance Goal Target
Bonus for that year, provided that in no event and notwithstanding anything to
the contrary shall the Company be obligated to pay the Executive in the
aggregate a bonus equal to more than 200% of his Target Bonus for any given
year. If the Executive achieves 91% or greater of a Performance Goal, but less
than 110% of a Performance Goal for any given year, the Company shall pay his
related Performance Goal Target Bonus as set forth below:

	 	 	 	 	 
	 	 	Percentage of related Performance
	Percentage of Performance Goal Achieved	 	Goal Target Bonus to be Paid
	
	 	

	91%
	 	 	10	%
	92%
	 	 	20	%
	93%
	 	 	30	%
	94%
	 	 	40	%
	95%
	 	 	50	%
	96%
	 	 	60	%
	97%
	 	 	70	%
	98%
	 	 	80	%
	99%
	 	 	90	%
	100%
	 	 	100	%
	101%
	 	 	101	%
	102%
	 	 	104	%
	103%
	 	 	109	%
	104%
	 	 	116	%
	105%
	 	 	125	%
	106%
	 	 	136	%
	107%
	 	 	149	%
	108%
	 	 	164	%
	109%
	 	 	181	%

 

 

EXHIBIT C

SEVERANCE AGREEMENT AND GENERAL RELEASE

[Date]

F. William Caple

_________________

_________________

Dear Bill:

     In connection with the termination of your employment with OTG Software,
Inc. (the “Company”) on [TERMINATION DATE] , you are eligible to receive
the severance benefits described in the “Description of Severance Benefits”
attached to this letter agreement as Attachment A if you sign and return this
letter agreement to Richard A. Kay in the enclosed envelope by [RETURN DATE (21
days after Termination Date)] . By signing and returning this letter
agreement, you will be entering into a binding agreement with the Company and
will be agreeing to the terms and conditions set forth in the numbered
paragraphs below, including the release of claims set forth in paragraph 3.
Therefore, you are advised to consult with your attorney before signing this
letter agreement and you may take up to twenty-one (21) days to do so. If you
sign this letter agreement, you may change your mind and revoke your agreement
during the seven (7) day period after you have signed it. If you do not so
revoke, this letter agreement will become a binding agreement between you and
the Company upon the expiration of the seven (7) day revocation period.

     If you choose not to sign and return this letter agreement by [RETURN
DATE] , you shall not receive any severance benefits from the Company. You
will, however, receive payment on your next regular payday for any wages and
unused vacation time accrued through the termination date. Also, regardless of
signing this letter agreement, you may elect to continue receiving group
medical insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq.
All premium costs shall be paid by you on a monthly basis for as long as, and
to the extent that, you remain eligible for COBRA continuation. However, if you
sign this letter agreement and elect “COBRA,” 29 U.S.C. §1161 et seq., the
Company will pay for 12 months of COBRA continuation coverage. You should
consult the COBRA materials to be provided by the Company for details regarding
these benefits. Except as provided on Attachment A hereto, all other benefits
will cease upon your Termination Date. All unvested stock rights will be
cancelled on the termination date.

     If, after reviewing this letter agreement with your attorney, you find the
terms and conditions are satisfactory to you, you should sign and return this
letter agreement to _______________ in the enclosed envelope by [RETURN
DATE] .

 

 

     The following numbered paragraphs set forth the terms and conditions that
will apply if you timely sign and return this letter agreement and do not
revoke it within the seven (7) day period:

	1.	 	Termination Date - Your effective date of termination from the Company is
_______________ (the “termination date”).
	 
	2.	 	Description of Severance Benefits - The severance benefits paid to you if
you timely sign and return this letter agreement and do not revoke it
within the seven (7) day revocation period are described in the
“Description of Severance Benefits” attached as Attachment A (the
“severance benefits”).
	 
	3.	 	Release - In consideration of the payment of the severance benefits,
which you acknowledge you would not otherwise be entitled to receive, you
hereby fully, forever, irrevocably and unconditionally release, remise and
discharge the Company, its officers, directors, stockholders, corporate
affiliates, subsidiaries, parent companies, agents and employees (each in
their individual and corporate capacities) (hereinafter, the “Released
Parties”) from any and all claims, charges, complaints, demands, actions,
causes of action, suits, rights, debts, sums of money, costs, accounts,
reckonings, covenants, contracts, agreements, promises, doings, omissions,
damages, executions, obligations, liabilities, and expenses (including
attorneys’ fees and costs), of every kind and nature which you ever had or
now have against the Released Parties arising out of your employment with
and/or separation from the Company, including, but not limited to, all
employment discrimination claims under Title VII of the Civil Rights Act
of 1964, 42 U.S.C. §2000e et seq., the Age Discrimination in Employment
Act, 29 U.S.C. § 621 et seq., the Americans With Disabilities Act of 1990,
42 U.S.C., §12101 et seq., the Family and Medical Leave Act, 29 U.S.C. §
2601 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., the
Fair Employment Practices Act, Md. Ann. Code art. 49B, § 1 et seq., the
Maryland Anti-Discrimination Act (96 DLR A-2, 5/17/01), the Handicapped
Anti-Discrimination Regulations, Code of Maryland Regulations (COMAR),
14.03.02.01 et seq., and the Equal Pay Law, Md. Ann. Code, Subtitle 3, §
301 et seq., all as amended, all claims arising out of the Fair Credit
Reporting Act, 15 U.S.C. §1681 et seq., and the Employee Retirement Income
Security Act of 1974 (“ERISA”), 29 U.S.C. §1001 et seq., all as amended,
all common law claims including, but not limited to, actions in tort,
defamation and breach of contract, all claims to any non-vested ownership
interest in the Company, contractual or otherwise, including, but not
limited to, claims to stock or stock options, and any claim or damage
arising out of your employment with and/or separation from the Company
(including a claim for retaliation) under any common law theory or any
federal, state or local statute or ordinance not expressly referenced
above; provided, however, that nothing in this letter agreement prevents
you from filing, cooperating with, or participating in any proceeding
before the EEOC or a state fair employment practices agency (except that
you acknowledge that you may not be able to recover any monetary benefits
in connection with any such claim, charge or proceeding).

C-2

 

	4.	 	Non-Disclosure and Non-Competition and Non-Solicitation- You acknowledge
and reaffirm your obligation to keep confidential all non-public
information concerning the Company that you acquired during the course of
your employment with the Company, as
stated more fully in the Employment Agreement, dated January      , 2002,
between you and the Company (the “Employment Agreement”), which
obligation remains in full force and effect. You further acknowledge and
reaffirm your obligations under the Employment Agreement’s
non-competition and non-solicitation provisions, which obligations also
remain in full force and effect.
	 
	5.	 	Return of Company Property - You confirm that you have returned to the
Company in good working order all keys, files, records (and copies
thereof), equipment (including, but not limited to, computer hardware,
software and printers, wireless handheld devices, cellular phones, pagers,
etc.), Company identification, Company vehicles and any other
Company-owned property in your possession or control and have left intact
all electronic Company documents, including, but not limited to, those
which you developed or helped develop during your employment. You further
confirm that you have cancelled all accounts for your benefit, if any, in
the Company’s name, including, but not limited to, credit cards, telephone
charge cards, cellular phone and/or pager accounts and computer accounts.
	 
	6.	 	Business Expenses and Compensation - You acknowledge that you have been
reimbursed by the Company for all relocation costs and business expenses
incurred in conjunction with the performance of your employment and that
no other reimbursements are owed to you. You further acknowledge that you
have received payment in full for all services rendered in conjunction
with your employment by the Company and that no other compensation is owed
to you other than as provided herein.
	 
	7.	 	Non-Disparagement - You understand and agree that as a condition for
payment to you of the consideration herein described, you shall not make
any false, disparaging or derogatory statements to any media outlet,
industry group, financial institution or current or former employee,
consultant, client or customer of the Company regarding the Company or any
of its directors, officers, employees, agents or representatives or about
the Company’s business affairs and financial condition.
	 
	8.	 	Amendment - This letter agreement shall be binding upon the parties and
may not be modified in any manner, except by an instrument in writing of
concurrent or subsequent date signed by duly authorized representatives of
the parties hereto. This letter agreement is binding upon and shall inure
to the benefit of the parties and their respective agents, assigns, heirs,
executors, successors and administrators.
	 
	9.	 	Waiver of Rights - No delay or omission by the Company in exercising any
right under this letter agreement shall operate as a waiver of that or any
other right. A waiver or consent given by the Company on any one occasion
shall be effective only in that instance and shall not be construed as a
bar to or waiver of any right on any other occasion.
	 
	10.	 	Validity - Should any provision of this letter agreement be declared or
be determined by any court of competent jurisdiction to be illegal or
invalid, the validity of the remaining parts, terms or provisions shall
not be affected thereby and said illegal or invalid part, term or
provision shall be deemed not to be a part of this letter agreement.

C-3

 

	11.	 	Confidentiality - You understand and agree that as a condition for
payment to you of the severance benefits herein described, the terms and
contents of this letter agreement, and the contents of the negotiations
and discussions resulting in this letter agreement, shall be maintained as
confidential by you and your agents and representatives and shall not be
disclosed except to the extent required by federal or state law or as
otherwise agreed to in writing by the Company.
	 
	12.	 	Nature of Agreement - You understand and agree that this letter agreement
is a severance agreement and does not constitute an admission of liability
or wrongdoing on the part of the Company.
	 
	13.	 	Acknowledgments - You acknowledge that you have been given at least
twenty-one (21) days to consider this letter agreement, including
Attachment A, and that the Company advised you to consult with an attorney
of your own choosing prior to signing this letter agreement. You
understand that you may revoke this letter agreement for a period of seven
(7) days after you sign this letter agreement, and that the letter
agreement shall not be effective or enforceable until the expiration of
this seven (7) day revocation period.
	 
	14.	 	Voluntary Assent - You affirm that no other promises or agreements of any
kind have been made to or with you by any person or entity whatsoever to
cause you to sign this letter agreement, and that you fully understand the
meaning and intent of this letter agreement. You state and represent that
you have had an opportunity to fully discuss and review the terms of this
letter agreement with an attorney. You further state and represent that
you have carefully read this letter agreement, including Attachment A,
understand the contents herein, freely and voluntarily assent to all of
the terms and conditions hereof, and sign your name of your own free act.
	 
	15.	 	Applicable Law - This letter agreement shall be interpreted and
construed by the laws of the State of Maryland, without regard to conflict
of laws provisions. You hereby irrevocably submit to and acknowledge and
recognize the jurisdiction of the courts of the State of Maryland, or if
appropriate, a federal court located in Maryland (which courts, for
purposes of this letter agreement, are the only courts of competent
jurisdiction), over any suit, action or other proceeding arising out of,
under or in connection with this letter agreement or the subject matter
hereof.
	 
	16.	 	Entire Agreement - This letter agreement, including Attachment A,
contains and constitutes the entire understanding and agreement between
the parties hereto with respect to your severance benefits and the
settlement of claims against the Company and cancels all previous oral and
written negotiations, agreements, commitments, writings in connection
therewith. Nothing in this paragraph, however, shall modify, cancel or
supersede your obligations set forth in paragraph 4 herein.

C-4

 

     If you have any questions about the matters covered in this letter
agreement, please call ______________.

	 	Very truly yours,

	 	OTG Software, Inc.

	 	 	 	 	 
		 	
By:
	 	_____________________________
	 	 	 	 	Name:
	 	 	 	 	Title:

     I hereby agree to the terms and conditions set forth above and in the
attached Description of Severance Benefits. I have been given at least
twenty-one (21) days to consider this letter agreement and I have chosen to
execute this on the date below. I intend that this letter agreement become a
binding agreement between me and the Company if I do not revoke my acceptance
in seven (7) days.

	 	 	 
	_________________________________	 	
Date _______________________________
	F. William Caple	 	 

To be returned in the enclosed envelope by [Date, 21 days out]

C-5

 

ATTACHMENT A

DESCRIPTION OF SEVERANCE BENEFITS

     In exchange for your execution of this letter agreement, including, but
not limited to your release of claims in paragraph 3, you will receive the
following:

     [To mirror the severance provisions of the Employment Agreement, dated
January __, 2002, between you and the Company.]

C-6

 

EXHIBIT D

None

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