Document:

EXHIBIT 10.2

 

REPUBLIC BANCORP, INC. AND SUBSIDIARIES

NON-EMPLOYEE
DIRECTOR AND KEY EMPLOYEE

DEFERRED
COMPENSATION PLAN

 

(as adopted November 18, 2004 and then

amended and restated March 16, 2005)

 

1.                                       General. 
This Republic Bancorp, Inc. And Subsidiaries Non-Employee
Director and Key Employee Deferred Compensation Plan (the “Plan”) is intended
to more closely align board and executive compensation at Republic Bancorp,
Inc. (the “Company”) and subsidiaries with the interests of the Company’s
shareholders, by making available to eligible participants tax-deferred
investments in Company stock.  It is intended that the Plan be in
compliance with Code Section 409A (“Section 409A”).  It is also
intended that the Plan be an unfunded arrangement maintained for non-employee
directors and for a select group of management or highly compensated
employees.  Effective upon the time that a Key Employee Participant (as
defined below) is first named on Exhibit A attached hereto, the Plan
shall be considered a  “top hat plan” for
purposes of the Employee Retirement Income Security Act of 1974, as
amended.  Capitalized terms used herein
and not defined where used shall have the meanings set forth in Section 23.

 

2.                                       Eligibility. 
Eligibility in the Plan shall be granted to the members of the Board of
Directors of the Company or of its Subsidiaries who are not also employees of
the Company or of its Subsidiaries (the “Director Participants”).  In
addition, eligibility in the Plan may be granted to the employees of the
Company or of its Subsidiaries who have been designated by the Compensation
Committee of the Board of Directors of the Company or the Subsidiary (as the
case may be for a particular Participant) (the “Committee”) as being eligible
for the Plan (the “Key Employee Participants” and, together with Director
Participants, the “Participants”).  The initial Key Employee Participants
(if any) are listed in Exhibit A attached hereto.  The
Committee shall have full power and discretion to name additional employees of
the Company as Key Employee Participants and to remove such employees as Key
Employee Participants at such times as it shall decide in its sole discretion,
provided that any such removal shall not affect a Participant’s Deferral
Elections already made until the next period for which such elections could
otherwise be changed or revoked hereunder.

 

3.                                       Election.

 

(a)                                  Director
Participant Elections.  Each Director Participant may elect to
defer under the Plan up to 100% of his annual board and committee meeting fees
(collectively, “Board Fees”).  A Director Participant’s election to defer
a portion of his Board Fees shall be made in writing and shall be effective
upon receipt and acceptance by the Company.  A new written election must
be submitted to the Company in 2005 with respect to any Board Fees to be earned
in 2006, and such election shall remain in effect for subsequent years unless a
new written election is submitted in accordance with this Section 3(a). 
Except in the case of a newly eligible Director Participant who may file an
election to defer within 30 days of his being eligible to participate in the
Plan, an election to defer (or to change or revoke an ongoing deferral
election)

 

 

shall
be made no later than 10 days preceding commencement of a calendar year with
respect to any deferral of Board Fees to be earned in such year, provided,
however, that such elections shall be made at an earlier time if required under
Section 409A.  Any election may be changed in writing, but only as to
fees to be earned at and after commencement of the next succeeding calendar
year, and shall become irrevocable 10 days before that succeeding calendar
year.

 

(b)                                 Key
Employee Participant Elections.  Each Key Employee Participant may
elect to defer under the Plan up to 50% of his base salary (“Base Compensation”)
and up to 100% of his annual incentive compensation with respect to services
for that upcoming year (even if the bonus is otherwise payable in a later
calendar year) (“Bonus Compensation”) (collectively, “Annual Compensation”). 
A Key Employee Participant’s election to defer a portion of his Annual
Compensation shall be made in writing and shall be effective upon receipt and
acceptance by the Company.  A new written election must be submitted to
the Company in 2005 with respect to any Annual Compensation to be earned in
2006, and such election shall remain in effect for subsequent years unless a
new written election is submitted in accordance with this Section 3(b). 
Except in the case of a newly eligible Key Employee Participant who may file an
election to defer Annual Compensation earned with respect to services performed
after such election within 30 days of his designation by the Committee as being
eligible to participate in the Plan, an election to defer Annual Compensation
(or to change or revoke an ongoing deferral election) shall be made no later
than 10 days preceding commencement of a calendar year with respect to any
deferral of Annual Compensation to be earned in such year. 
Notwithstanding the foregoing, if Bonus Compensation qualifies as “performance-based
compensation” under Section 409A, an election to defer Bonus Compensation
may be made as late as June 30th of the year with respect to
which such Bonus Compensation relates, provided that there is no minimum amount
payable or substantially certain to be paid at the date such election is
actually made.  Any election may be
changed in writing, but only as to compensation that relates to services
rendered after commencement of the next succeeding calendar year, and shall
become irrevocable 10 days before the succeeding calendar year.

 

4.                                       Duration
of Deferral.  Each Participant’s election shall specify the period of
the deferral, which shall be a specified period of years ranging from two to
five years from the beginning of the year of deferral.  A Participant may
later elect to lengthen the period of a deferral; provided, however, that any
delayed payment date election shall not take effect for 12 months following the
election and the election must be made at least 12 months before the
previously-scheduled payment date with respect to the deferral, and, provided
further, that each such change in payment date must provide for an additional
deferral of the payment date for five years later than the previously-schedule payment
date.

 

5.                                       Deferred
Compensation Account.  The Company
shall maintain a bookkeeping account to which deferred compensation of each
Participant shall be credited at the end of each calendar month after such
compensation is earned (each a “Deferred Compensation Account”).  At the
end of each fiscal quarter, the amounts credited to each Deferred Compensation
Account shall be converted into whole stock units (“Stock Units”) equivalent in
value to shares of Class A common stock of the Company (“Stock”).  The conversion
of deferred compensation into Stock Units will be made on the basis of the Fair
Market Value of the Stock on the last business day of each fiscal
quarter.  Any fractional units shall be credited as cash and converted to
Stock Units

 

 

only
as and when the accumulated cash credited to that Participant is sufficient to
convert to a whole Stock Unit at the end of a quarter.

 

6.                                       Dividend
Equivalent.  During the term of deferral, the Stock Units standing to
the credit of each Participant’s Deferred Compensation Account shall be
credited with an amount equal to the cash dividends that would have paid on the
number of Stock Units in such Deferred Compensation Account if such Stock Units
were deemed to be outstanding shares of Stock (“Dividend Equivalents”). 
Dividend Equivalents credited to Stock Units shall be converted to additional
whole Stock Units and credited to the Participant’s Deferred Compensation
Account at the end of each fiscal quarter.  The conversion of Dividend
Equivalents into Stock Units shall be made on the basis of the Fair Market
Value of the Stock on the last business day of each fiscal quarter.  Any fractional units shall be credited as
cash and converted to Stock Units only as and when the accumulated cash
credited to that Participant is sufficient to convert to a whole Stock Unit at
the end of a quarter.

 

7.                                       Changes
in Stock.  In the event of a stock dividend, stock split, reverse
stock split or similar change in capitalization affecting the Stock, the
Committee shall make appropriate adjustments in the number of Stock Units
credited to each Participant’s Deferred Compensation Account.  The
adjustment by the Committee shall be final, binding and conclusive.

 

8.                                       Rights
of Participants.  Participation in the Plan, and any actions taken
pursuant to the Plan, shall not create or be deemed to create a trust or
fiduciary relationship of any kind between the Company, its Subsidiaries and
the Participant.  The Company or its Subsidiaries (as the case may be)
may, but shall have no obligation to, establish any separate fund, reserve, or
escrow or to provide security with respect to any amounts deferred under the
Plan.  Any assets of the Company or its Subsidiaries which are set aside
in any separate fund, reserve or escrow shall continue for all purposes to be a
part of the general assets of the Company or its Subsidiaries, with title to
the beneficial ownership of any such assets remaining at all times in the
Company and its Subsidiaries.  No Participant, nor his legal
representatives, nor any of his beneficiaries shall have any right, other than
the right of an unsecured general creditor of the Company or its Subsidiaries,
in respect of the Deferred Compensation Account established hereunder, and such
persons shall have no property interest whatsoever in any specific assets of
the Company or its Subsidiaries.  A Participant shall have no rights as a
stockholder of the Company, and shall not be entitled to vote, with respect to
the Stock Units credited to his Deferred Compensation Account.

 

9.                                       Distributions.

 

(a)                                  Normal
Distributions.

 

(i)                                     Director
Participants.  Each Director Participant (or his beneficiary in the
event of his death) shall be entitled to receive the value of all Stock Units
standing to the credit of his Deferred Compensation Account upon the earliest
to occur of: (A) the payment date last selected pursuant to Section 4; and
(B) the Director Participant’s death or Disability.

 

 

(ii)                                  Key
Employee Participants.  Each Key Employee Participant (or his
beneficiary in the event of his death) shall be entitled to receive the value
of all Stock Units standing to the credit of his Deferred Compensation Account
upon the earliest to occur of: (A) the payment date last selected pursuant to Section 4;
and (B) the Key Employee Participant’s death or Disability.

 

(b)                                 Early
Distributions.  A Participant will only be permitted to receive a
distribution of his Deferred Compensation Account prior to the times specified
in Section 9(a) above in the event of: (i) a Change in Control of the
Company or Subsidiary for which that Participant works or performs Director
services; or (ii) upon approval by the Committee, a de minimis payout of a
Participant’s entire Deferred Compensation Account upon his Termination of
Employment or Service if the payment is not greater than $10,000 and the payout
is made on or before the later of December 31 of the year of his
Termination of Employment or 21⁄2 months after his Termination of Employment

 

(c)                                  Form
of Distribution.  All distributions
shall be paid in a single lump of whole shares of Stock equal to the number of
Stock Units in the Deferred Compensation Account, with any amount in excess of
whole shares then credited to the account paid in cash.  All distributions under the Plan shall be the
obligation of the Company or Subsidiary for which the Participant provides
services.

 

(d)                                 Delay
in Distribution to Key Employees.  Notwithstanding
anything to the contrary in this Section 9, in the case of a distribution
to a Participant who is a “key employee” where the timing of such distribution
is based on such Participant’s Termination of Employment, the date of
distribution to such Participant shall be at least six (6) months after the
date of such Participant’s Termination of Employment (or, if earlier, the date
of the Participants death or Disability). 
A “key employee” shall be a key employee as defined in Section 416(i)
of the Code without regard to paragraph 5 thereof.

 

10.                                 Tax
Withholding.

 

(a)                                  Payment
by Participant.  Each Participant shall, no later than the date as of
which his Stock Units or payments received thereunder first become includible
in the gross income of the Participant for Federal income or employment tax
purposes, pay to the Company, or make arrangements satisfactory to the
Committee regarding payment of, any Federal, state, or local taxes of any kind
required by law to be withheld with respect to such income.  With respect
to Key Employee Participants, the Company will withhold any such taxes then due
to be withheld from the amount that would otherwise be deferred and credited
hereunder, and credit the net after such tax withholding to the Participant’s
Deferred Compensation Account.  The
Company shall, to the extent permitted by law, have the right to deduct any
such taxes from any payment of any kind otherwise due to the Participant. 
The Company’s obligation to make any payments to any Participant is subject to
and conditioned on tax obligations being satisfied by the Participant. 
The Company shall report amounts deferred hereunder to the Internal Revenue
Service in accordance with the requirements of Section 409A.

 

 

(b)                                 Payment
in Stock.  Subject to approval by the Committee, a Participant may
elect to have the minimum required Federal, state, other income and statutory
withholding obligation due when payments are made under the Plan satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to the Plan a number of shares with an aggregate
fair market value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the Participant, and that have been held by the Participant
for at least six months (12 months in the case of Stock acquired upon exercise of
an incentive stock option), with an aggregate Fair Market Value (as of the date
the withholding is effected) that would satisfy the withholding amount
due.  Notwithstanding the preceding
sentence, any such right to pay withholding amounts due by delivery of
already-owned stock shall be ineffective and void from its inception if such
right is deemed to be a feature allowing deferral of compensation within the
meaning of Section 409A.

 

11.                                 Beneficiary. 
If a Participant dies before he has received full payment of the amount
credited to his Deferred Compensation Account, such unpaid portion shall be
paid to the Participant’s primary or contingent beneficiary as designated by
the Participant in writing.  If no beneficiary has been designated or if a
designated beneficiary has predeceased the Participant, such unpaid portion
shall be paid first to the Participant’s spouse, or, if there is no spouse, to
the Participant’s children per stirpes, or, if there are no
spouse or children, to the Participant’s estate.

 

12.                                 No
Assignment.  The deferred compensation payable under this Plan shall
not be subject to alienation, assignment, garnishment, execution, or levy of
any kind, and any attempt to cause any compensation to be so subjected shall
not be recognized.

 

13.                                 Expenses. 
All expenses incurred in the establishment and maintenance of or attributable
to a Participant’s Deferred Compensation Account shall be borne by the Company
and shall not reduce the amount credited to such Deferred Compensation Account.

 

14.                                 Amendment
and Termination.  This Plan may be amended in any way or may be
terminated, in whole or in part, at any time, and from time to time, by the
Board of Directors of the Company.  The foregoing provisions of this
paragraph notwithstanding, no amendment or termination of the Plan shall
adversely reduce the number of Stock Units credited to the Deferred
Compensation Accounts prior to the effective date of such amendment or
termination or, except to the extent permitted under Section 409A
following a Change in Control, accelerate the timing of payment from the
Deferred Compensation Accounts.  Notwithstanding the foregoing, the Board
of Directors of the Company specifically reserves the right to amend the Plan
as necessary to comply with Section 409A.

 

15.                                 Plan
Administration.  The Board of Directors of the Company shall have the
exclusive discretionary authority to determine the amounts of benefits under
the Plan, make factual determinations, construe and interpret terms of the
Plan, supply omissions and determine any questions which may arise in
connection with its operation and administration.  Its decisions or
actions in respect thereof, including any determination of any amount credited
or charged to the Participants’ Deferred Compensation Accounts or the amount or
recipient of any payment to be made therefrom, shall be conclusive and binding
for all purposes upon the Company and upon

 

 

any
and all Participants, their beneficiaries, and their respective heirs,
distributees, executors, administrators and assignees.  In the case of the
administration of the Plan with respect to Key Employee Participants only, the
authority of the Board of Directors of the Company described herein may be
exercised by the Committee.

 

16.                                 Binding
Effect.  The terms of this Plan shall be binding upon and shall inure
to the benefit of the Company and its successors or assigns and each
Participant and his Beneficiaries, heirs, executors, and administrators.

 

17.                                 Limitation
of Liability.  Subject to its obligation to pay the amount credited to
the Participant’s Deferred Compensation Account at the time distribution is
called, neither the Company, any person acting on behalf of the Company, the
Board of Directors, nor the Committee shall be liable for any act performed or
the failure to perform any act with respect to the terms of the Plan, except in
the event that there has been a judicial determination of willful misconduct on
the part of the Company, such person, the Board of Directors or the Committee.

 

18.                                 Governing
Law.  This Plan, and all actions taken hereunder, shall be governed by
and construed in accordance with the laws of the Commonwealth of Kentucky,
except as such laws may be superseded by any applicable Federal laws.

 

19.                                 Reporting. 
The Company shall provide statements to Participants showing the amounts
standing to the credit of their Deferred Compensation Accounts no less
frequently than once a year.

 

20.                                 Claims
Procedure.

 

(a)                                  All
claims for benefits under this Plan shall be filed in writing with the Board of
Directors of the Company in accordance with such procedures as the Board shall
reasonably establish.

 

(b)                                 The
Board of Directors of the Company shall, within 90 days (45 days for payment
based on Disability) after a submission of a claim, provide adequate notice in
writing to any claimant whose claim for benefits under the Plan has been
denied.  Such notice shall contain the specific reason or reasons for the
denial and references to specific Plan provisions on which the denial is
based.  The Board shall also provide the claimant with a description of
any material or information which is necessary in order for the claimant to
perfect his claim and an explanation of why such information is
necessary.  If special circumstances require an extension of time for
processing the claim, the Board shall furnish the claimant a written notice of
such extension prior to the expiration of the 90-day period (30 days for a
Disability claim, and an additional 30 day extension is available).  The
extension notice shall indicate the reasons for the extension and the expected
date for a final decision, which date shall not be more than 180 days (105 days
for Disability) from the initial claim.

 

(c)                                  The
Board of Directors of the Company shall, upon written request by a claimant
within 60 (180 for a disability claim) days of receipt of the notice that his
claim has been denied, afford a reasonable opportunity to such claimant for a
full and fair review by the Board of the

 

 

decision
denying the claim.  The Board will afford the claimant an opportunity to
review pertinent documents and submit issues and comments in writing.  The
claimant shall have the right to be represented.

 

(d)                                 The
Board of Directors of the Company shall, within 60 days (45 days for a
disability claim) of receipt of a request for a review, render a written
decision on its review.  If special circumstances require extra time for
the Board to review its decision, the Board will attempt to make its decision
as soon as practicable, and in no event will the Board take more than 120 days
(105 days for Disability claims) to send the claimant a written notice of its
decision.

 

21.                                 Source
of Shares.  Shares of Stock reserved under the Company’s 2005 Stock
Incentive Plan shall be used to satisfy any obligations to distribute Stock under
this Plan, but the Stock when issued under this Plan shall not bear the
restrictions on transfer set forth in Section 10.10 of the Stock Incentive
Plan.

 

22.                                 Effective
Date.  This Plan shall be effective as of January 1, 2005.

 

23.                                 Definitions.

 

(a)                                  “Change
in Control “ shall have the meaning provided in regulations or guidance under
Code Section 409A from time to time, which currently provide that it shall
mean the occurrence of a “Change in Ownership,” “Change in Effective Control”
or “Change in Asset Control” as each is defined below, subject to the
requirements in subsection (i) below.

 

(i)                                     General Requirements.

 

(A)                              The
Change in Control must relate to (A) a corporation for whom the Participant is
performing services at the time of the Change in Control, (B) a corporation
that is liable for the payment of the deferred compensation (or all
corporations liable for the payment if more than one corporation is liable), or
(C) a corporation that is a majority shareholder of a corporation identified in
(A) or (B), or any corporation in a chain of corporations in which each
corporation is a majority shareholder of another corporation in the chain,
ending in a corporation identified in (A) or (B).

 

(B)                                A
majority shareholder is a shareholder owning more than 50% of the total fair
market value and total voting power of such corporation.

 

(C)                                For
purposes of this definition, Code Section 318(a) applies to determine
stock ownership.  Stock underlying a
vested option is considered owned by the individual who holds the vested option
(and the stock underlying an unvested option is not considered owned by the
individual who holds the unvested option). 
For purposes of the preceding sentence, however, if a
vested option is exercisable for stock that is not substantially vested (as
defined by Treas. Reg.  Sections
1.83-3(b) and (j)), the stock underlying the option is not treated as owned by
the individual who holds the option.

 

 

(D)                               For
purposes of this definition, Persons will not be considered to be acting as a
group solely because they purchase assets or purchase or own stock of the same
corporation at the same time, or as a result of the same public offering.  However, persons will be considered to be
acting as a group if they are owners of a corporation that enters into a
merger, consolidation, purchase or acquisition of stock or assets, or similar
business transaction with the corporation. 
If a Person owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a
corporation only to the extent of the ownership in that corporation prior to
the transaction giving rise to the change and not with respect to the ownership
interest in the other corporation.

 

(ii)                                  Change in Ownership. 
A Change in Ownership occurs on the date that any one Person, or more
than one person acting as a group (as defined above in subsection (a)(i)(D)), acquires ownership of stock of the corporation
that, together with stock held by such Person or group, constitutes more than
50 percent of the total fair market value or total voting power of the stock of
the corporation.  However, if any one
Person or more than one Person acting as a group, is considered to own more
than 50 percent of the total fair market value or total voting power of the
stock of the corporation, the acquisition of additional stock by the same
Person or Persons is not considered to cause a Change in Ownership of the
corporation (or to cause a Change in the Effective Control of the
corporation.  An increase in the
percentage of stock owned by any one Person, or Persons acting as a group, as a
result of a transaction in which the corporation acquires its stock in exchange
for property will be treated as an acquisition of stock for purposes of this
Section.  A Change in Ownership occurs
only when there is a transfer of stock of the corporation (or issuance of stock
of the corporation) and stock in the corporation remains outstanding after the
transaction.

 

(iii)                               Change in Effective Control. 
Notwithstanding that the corporation has not undergone a Change in
Ownership, a Change in Effective Control of the corporation occurs on the date
that either:

 

(A)                              Any
one Person, or more than one Person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such Person or Persons) ownership of stock of the corporation
possessing 35 percent or more of the total voting power of the stock of the
corporation; or

 

(B)                                A
majority of members of the Board of Directors of the corporation is replaced
during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of the Board prior to the date of the
appointment or election, provided that for purposes of this paragraph (B) the
term corporation refers solely to the relevant corporation

 

 

identified
above in subsection (a)(i)(A) for which no other corporation is a majority
shareholder for purposes of that paragraph.

 

A Change in Effective
Control also may occur in any transaction in which either of the two
corporations involved in the transaction has a Change in Control under
subsections (a)(ii) or (a)(iv) of this definition.

 

If any one Person, or
more than one Person acting as a group, is considered to effectively control a
corporation (within the meaning of this subsection (a)(iii)),
the acquisition of additional control of the corporation by the same Person or
Persons is not considered to cause a Change in Effective Control of the
corporation (or to cause a Change in Ownership of the corporation within the
meaning of subsection (a)(ii)).

 

(iv)                              Change in Asset Control.  A Change in Asset Control of the corporation
occurs on the date that any one Person, or more than one Person acting as a
group), acquires (or has acquired during the 12-month period ending on the date
of the most recent acquisition by such Person or Persons) assets from the
corporation that have a total gross fair market value equal to or more than 40
percent of the total gross fair market value of all of the assets of the
corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value
means the value of the assets of the corporation, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
such assets.

 

(A)                              There
is no Change in Control under this subsection (iv)
when there is a transfer to an entity that is controlled by the shareholders of
the corporation immediately after the transfer, as provided in this subsection (iv).  A transfer of assets by the corporation is
not treated as a Change in Assets Control if the assets are transferred to:

 

(1)                                  A
shareholder of the corporation (immediately before the asset transfer) in
exchange for or with respect to its stock;

 

(2)                                  An
entity, 50 percent or more of the total value or voting power of which is
owned, directly or indirectly, by the corporation;

 

(3)                                  A
Person, or more than one Person acting as a group, that owns, directly or
indirectly, 50 percent or more of the total value or voting power of all the
outstanding stock of the corporation; or

 

(4)                                  A
Person, at least 50 percent of the total value or voting power of which is
owned, directly or indirectly, by a Person described subsection (iv)(A)(3).

 

(B)                                For
purposes of this subsection (iv) and except as
otherwise provided, a Person’s status is determined immediately after the
transfer of the assets.

 

 

(b)                                 “Code”
shall mean the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder.

 

(c)                                  “Disability”
shall mean when a Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, or is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, if the Participant is receiving income replacement benefits for a
period of not less than 3 months under an accident and health plan covering
employees of the Company of a Subsidiary.

 

(d)                                 “Fair
Market Value” shall mean, as of any date, the value of a share of Stock
determined as follows:

 

(i)                                     If
the Stock is listed on any established stock exchange or a national market
system, including, without limitation, the National Market of the National
Association of Securities Dealers, Inc. Automated Quotation (“Nasdaq”) System,
its Fair Market Value shall be the closing market price of the Stock as
reported on the date of determination, or, if no trades were reported on that
date, the closing price on the most recent trading day immediately preceding
the date of the determination, as quoted on such system or exchange, or the
exchange with the greatest volume of trading in Stock for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Committee deems reliable;

 

(ii)                                  If
the Stock is quoted on the Nasdaq System (but not on the National Market
thereof) or regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the
high bid and low asked prices for the Stock for the last market trading day
prior to the time of determination, as reported in The Wall Street Journal or
such other source as the Committee deems reliable; or

 

(ii)                                  In
the absence of such markets for the Stock, the Fair Market Value shall be
determined in good faith by the Committee, considering any and all information
they determine relevant, including, without limitation, the valuation methods
permitted in Treas. Reg. Section 20.2031-2 (estate tax regulations) or a
third-party appraisal.

 

(e)                                  “Person”
shall mean an individual, a partnership, a corporation, a limited liability
company, a limited liability partnership, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or any other
business entity.

 

(f)                                    “Subsidiary”
or “Subsidiaries” shall mean any corporation which at the time qualifies as a
subsidiary of the Company under the definition of “subsidiary
corporation” in Code Section 424(f).

 

 

(g)                                 “Termination
of Employment” or “Service”  shall be
deemed to have occurred at the time and date that the Employee notifies, or is
notified by the Company or a Subsidiary, that Key Employee’s employment will be
terminating, even if not immediately effective. 
With respect to a Director, it shall be deemed to occur on a Director’s
cessation of service on the board of directors of both the Bank and the
Company.  The Committee shall determine
whether an authorized leave of absence, or other absence on military or
government service, constitutes severance of the employment relationship
between the Company or a Subsidiary and the Key Employee.  No termination shall be deemed to occur if (i)
the Participant is a Director who becomes an Employee, or (ii) the Participant
is an Employee who becomes a Director.

 

 

	
  Board Approval:

  	
  March 16, 2005

  	
  /s/ MAR

  	
   

  
	
   

  	
   

  
	
  Shareholder Approval:

  	
                             ,
  2005            
  [secretary to initial]

  
					

 

 

 

EXHIBIT A

 

KEY
EMPLOYEE PARTICIPANTS

 

None as March 1,
2005Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

AGREEMENT (“Agreement”), dated as of March 15,
2005 (“Effective Date”) by and between New Plan Excel Realty Trust, Inc., a
Maryland corporation (the “Company”) and Glenn J. Rufrano (“Executive”).

 

RECITAL

 

The Company desires to continue to employ Executive as
of the Effective Date, on the terms and conditions set forth in this Agreement,
and Executive desires to be so employed.

 

AGREEMENT

 

IN CONSIDERATION of the premises and the mutual
covenants set forth below, the parties hereby agree as follows:

 

1.                                       Employment.  The Company hereby agrees to continue to employ
Executive and Executive hereby agrees to continue such employment, on the terms
and conditions hereinafter set forth.

 

2.                                       Term.  The period of employment of Executive by the
Company hereunder (the “Employment Period”) shall commence on the Effective
Date and shall continue through June 30, 2010.  At the time Executive ceases to be a
full-time employee of the Company, the Executive agrees that he shall resign as
a director, trustee and officer of the Company and its subsidiaries and any
entity in control of, controlled by or under common control with the Company or
in which the Company owns any common or preferred stock or interest or any
entity in control of, controlled by or under common control with such entity (“Affiliate”)
and as a member of any committee of the board of directors and the board of
trustees of the Company and its subsidiaries and Affiliates of which he is a
member.

 

3.                                       Position
and Duties.

 

(a)                                  Chief
Executive Officer.  At all times
during the Employment Period, Executive shall serve as Chief Executive Officer
of the Company, and shall report solely and directly to the Board of Directors
of the Company (“Board”).  Executive
shall have those powers and duties normally associated with the position of a
Chief Executive Officer and such other powers and duties as may be properly
prescribed by the Board of Directors of the Company (“Board”), provided that
such other powers and duties are consistent with Executive’s position as Chief
Executive Officer.  Except as
specifically set forth in this section, Executive shall perform full-time
services for the Company and devote such time, attention and energies to
Company affairs as are necessary to fully perform his duties (other than
absences due to illness or vacation) for the Company.  Notwithstanding the above, Executive shall be
permitted, to the extent such activities do not materially and adversely affect
the ability of Executive to fully perform his duties and responsibilities
hereunder, to (i) manage Executive’s personal, financial and legal affairs,
(ii) serve on civic or charitable boards or committees, and (iii) with the
consent of the Board, and subject to the limitations set forth in the Company’s
corporate governance guidelines, serve as a member of the board of directors of
any noncompeting business.  The Executive
has

 

 

disclosed to the Company
a list of boards of which he is currently a member, and the Company has
consented to his continued membership on such boards.

 

(b)                                 Director.  During the Employment Period the Company
agrees to nominate the Executive as a member of the Board for each successive term
and use reasonable good faith effort to cause Executive to be elected as a
member of the Board, including, without limitation, recommending Executive to
be elected as a member of the Board in the proxy statement distributed to
shareholders regarding the election of members of the Board.  During any period during the Employment
Period when Executive is not a member of the Board, Executive shall be invited
to attend and shall be entitled to participate in all Board meetings but shall
have no right to vote at such meetings.  The
Executive shall remain a member of the Investment Committee during the Employment
Period for as long as the Investment Committee exists and thereafter during the
Employment Period the Executive shall be appointed as a full voting member of
any successor committee or body (other than the Board itself) which succeeds to
the Investment Committee.

 

4.                                       Place
of Performance.  The principal place
of employment of Executive shall be at the Company’s corporate offices in New
York, New York.

 

5.                                       Compensation
and Related Matters.

 

(a)                                  Salary.  During the Employment Period, the Company shall
pay Executive an annual base salary of not less than $600,000 (“Base Salary”).  Executive’s Base Salary shall be paid in
approximately equal installments in accordance with the Company’s customary
payroll practices. If Executive’s Base Salary is increased by the Company, such
increased Base Salary shall then constitute the Base Salary for all purposes of
this Agreement.

 

(b)                                 Bonus.  The Board’s executive compensation and stock
option committee (the “Compensation Committee”) shall review Executive’s performance
at least annually during each year of the Employment Period and cause the
Company to award Executive such cash bonus as the Compensation Committee shall
reasonably determine as fairly compensating and rewarding Executive for
services rendered to the Company and/or as an incentive for continued service
to the Company, but in no event shall Executive’s bonus for the period from January 1,
2005 through December 31, 2005, and payable on or before March 15,
2006, be less than $800,000 (the “2005 Bonus”).  Thereafter, the amount of Executive’s cash
bonus shall be determined in the discretion of the Compensation Committee and
shall be dependent upon, among other things, the achievement of certain
performance levels by the Company, including, without limitation, growth in
funds from operations, and Executive’s performance and contribution to
increasing the funds from operations. 
Determinations by the Compensation Committee shall be subject to
ratification by a majority of the independent directors of the Board, inclusive
of the members of the Compensation Committee. 
Notwithstanding anything contained herein to the contrary, there shall
be no guarantee as to the amount of Executive’s yearly bonus, except with
respect to the 2005 Bonus, and a decrease in Executive’s bonus after the 2005
Bonus to an amount less than any prior year’s bonus shall not constitute a
breach or violation of this Agreement by the Company or constitute a Good
Reason Event.

 

2

 

(c)                                  Long Term Incentive Compensation.  The Compensation Committee shall review
Executive’s performance at least annually during each year of the Employment
Period and cause the Company to award Executive a long term incentive
compensation award in the form of stock option grants and/or restricted stock
grants in the amount which the Compensation Committee shall reasonably
determine as fairly compensating and rewarding Executive for services rendered
to the Company and/or as an incentive for continued service to the Company, but
in no event shall Executive’s aggregate award to be made on or before March 15,
2006 for the period from January 1, 2005 through December 31, 2005
have a value of less than $800,000 (the “2005 Equity Award”), as reasonably
determined by the Compensation Committee. 
Thereafter, the amount of Executive’s long term incentive shall be
determined in the discretion of the Compensation Committee and shall be
dependent upon, among other things, the achievement of certain performance
levels by the Company, including, without limitation, growth in funds from
operations, and Executive’s performance and contribution to increasing the
funds from operations.  The allocation of the award between stock
option grants and/or restricted stock grants, 
and the vesting and other terms of the grants, will be determined by the
Compensation Committee, on terms no less favorable than the terms of the grants
then being made to the other senior executives of the Company.  Determinations by the Compensation Committee
shall be subject to ratification by a majority of the independent directors of
the Board, inclusive of the members of the Compensation Committee.  However, notwithstanding any contrary
provision under this Section 5(c) or in the award agreement, any stock
option grant hereafter awarded to Executive shall include a post-termination
exercise period of at least 90 days (subject to any vesting condition and
different rules that may be applied for termination for Cause (defined below)),
and this period shall be extended to up to a total of 150 days following
Executive’s employment termination based on a day-for-day extension
automatically applied for each blackout trading day that is part of a blackout
commencing during the initial 90-day exercise period.

 

(d)                                 Out-Performance Shares Award.  In addition to the long-term incentive awards
described in Section 5(c), the Executive shall receive an award of common
stock of the Company (the “Outperform Shares Award” and the “Outperform Shares”)
in the event that over the period commencing February 23, 2005 and ending February 22,
2009 (the “Initial Performance Period”) the Annual New Plan Total Return is at
least 11% or the Annual New Plan Total Return is at least 110% of the Annual
Peer Group Total Return.  In the event
that either of such thresholds is achieved, then the Outperform Shares Award
will equal $3.5 Million plus an amount equal to (i) $208,333 for each 25 basis
points that the Annual New Plan Total Return exceeds 11% or (ii) $125,000 for
each 25 basis points over 110% that the Annual New Plan Total Return exceeds
the Annual Peer Group Total Return; provided, however, in no event shall the
total Outperform Shares Award exceed $6 Million.  If both of the minimum performance thresholds
are achieved, the Executive shall be entitled to receive an Outperform Shares
Award based on the calculation that produces the larger award.

 

For the Initial
Performance Period, the number of Shares (hereafter defined) to be received by
Executive shall be calculated by dividing the dollar amount of the Outperform
Shares Award earned by Executive, as provided in this Section 5(d), by the
Fair Market Value of a Share (hereafter defined) on February 22,
2009.  An award of Outperform Shares made
for the Initial Performance Period shall be restricted Shares treated as
granted on February 22, 2009 and subject to a one-year cliff vesting
schedule.  Accordingly, any Shares
awarded for the Initial

 

3

 

Performance Period shall
become fully vested and non-forfeitable on February 22, 2010 if the
Executive remains in the employment of the Company, without regard to any
performance criteria for the period commencing February 23, 2009 and
ending February 22, 2010.  During
the vesting period while the Executive remains employed by the Company,
Executive shall be entitled to vote the Shares and to receive payment outright
of any dividends paid on the Shares. 
Except as explicitly provided in Section 8, Executive shall forfeit
any Outperform Shares awarded for the Initial Performance Period if he ceases
to be an employee prior to February 22, 2010.  Any such forfeiture shall void any right
Executive has to vote the Shares or to receive dividends on the Shares after
the forfeiture date.

 

If at
the end of the Initial Performance Period neither performance threshold is
achieved or Executive reaches the minimum performance threshold but receives an
Outperform Shares Award of less than $6 Million, a different performance period
shall be treated as running for the five-year period commencing February 23,
2005 and ending February 22, 2010 (the “Final Performance Period”).  If for the Final Performance Period the
Executive achieves a minimum performance threshold (i.e., neither performance
threshold was achieved during the Initial Performance Period) or achieves a
result greater than the result achieved for the Initial Performance Period,
Executive shall receive a supplemental Outperform Shares Award in the amount
and manner next described.  The award
shall have a value equal to (i) minus (ii), where (i) is the Outperform Shares
Award corresponding to the Final Performance Period, and (ii) is the Outperform
Shares Award corresponding to the Initial Performance Period.  The Outperform Shares Award shall consist of
the number of Shares determined by dividing the award value just determined by
the Fair Market Value of a Share on February 22, 2010.  Any Shares awarded for the Final Performance
Period shall be unrestricted Shares, and, therefore, become fully vested and
non-forfeitable as of February 22, 2010 and shall be in addition to, but
not duplicative of, the award of Shares received for the Initial Performance
Period (i.e., in no event shall the total Outperform Shares Award aggregated
for both the Initial Performance Period and the Final Performance Period exceed
$6 Million).

 

Except
as explicitly provided in Section 8 of this Agreement, Executive shall not
be entitled to any Outperform Share award under this Section 5(d) if he
ceases to be an employee of the Company prior to the end-date of the Initial
Performance Period and, if he ceases to be an employee of the Company prior to
the Final Performance Period, Executive shall not be entitled to a supplemental
award of Outperform Shares.

 

For
purposes of this Section 5(d), (i) “Shares” shall mean a share of common
stock of the Company, (ii) “Annual New Plan Total Return” shall mean the
average annual total return on the Shares over the applicable measurement
period, taking into account regular and special dividends paid on the Shares as
well as appreciation in the price of the Shares (based on the Fair Market Value
of the Shares as of each measurement date) and (iii) “Annual Peer Group Total
Return” shall mean, with respect to each of the companies listed on Exhibit A
attached to this Agreement, the average of the average annual total return on
the shares of each such company (the “Peer Shares”) over the applicable
measurement period, taking into account regular and special dividends paid on
the Peer Shares as well as appreciation in the price of the Peer Shares (based
on the Fair Market Value of the Peer Shares as of each measurement date).

 

4

 

For
purposes of this Section 5(d), the Fair Market Value of a Share or a Peer
Share on each of February 23, 2005, February 22, 2009 and February 22,
2010 shall equal the average of the closing price of a Share or a Peer Share,
as applicable, on the New York Stock Exchange for each of the twenty
consecutive business days immediately preceding the determination date.  Thus, the twenty business days used to
calculate the average shall end on the date hereafter identified:  (i) for the determination of the Fair Market
Value on February 23, 2005, the end date for determining the average is February 22,
2005; (ii) for the determination of the Fair Market Value on February 22,
2009, the end date for determining the average is February 20, 2009; and
(iii) for the determination of the Fair Market Value on February 22, 2010,
the end date for determining the average is February 19, 2010.

 

The
Compensation Committee shall have the right to make such reasonable
interpretations and equitable adjustments as it deems necessary or appropriate
to determine Executive’s entitlement to Outperform Shares in accordance with
this Section 5(d) or to take into account any transaction by the Company
or members of the peer group, such as a merger, consolidation, acquisition,
reorganization, reclassification, stock split, stock dividend, distribution
(other than regular dividends) or other similar transactions.  The reasonable determinations of the
Compensation Committee shall be conclusive and shall be binding on the parties.

 

(e)                                  Expenses.  The Company shall promptly reimburse
Executive for all reasonable business expenses upon the presentation of
reasonably itemized statements of such expenses in accordance with the Company’s
policies and procedures now in force or as such policies and procedures may be
modified with respect to all senior executive officers of the Company.

 

(f)                                    Vacation.  Executive shall be entitled to the number of
weeks of vacation per year provided to the Company’s senior executive officers,
but in no event less than four (4) weeks annually.

 

(g)                                 Welfare,
Pension and Incentive Benefit Plans. 
During the Employment Period, Executive (and his spouse and dependents
to the extent provided therein) shall be entitled to participate in and be
covered under all the welfare benefit plans or programs maintained by the
Company from time to time on terms no less favorable than provided for any of
its senior executives including, without limitation, all medical,
hospitalization, dental, disability, accidental death and dismemberment and
travel accident insurance plans and programs. 
In addition, during the Employment Period, Executive shall be eligible
to participate in and be covered under all pension, retirement, savings and
other employee benefit, perquisite, change in control and executive
compensation plans and any annual incentive or long-term performance plans and
programs maintained from time to time by the Company on terms no less favorable
than provided for any of its senior executives.

 

(h)                                 Automobile.  During the Employment Period, the Company
shall provide Executive with an automobile allowance of $2,200 per month.

 

(i)                                     No
Hedging.  During the Employment
Period, Executive will not in any way attempt to limit the financial risk with
respect to stock options or restricted stock which are

 

5

 

not vested by means of
any hedging (including without limitation, selling short) or other techniques.

 

(j)                                     Registration.  Any stock options, restricted stock or
unrestricted stock awarded to Executive in accordance with this Agreement shall
relate to Shares covered by an effective registration statement on Form S-8 (or
any successor or replacement form) under the Securities Act of 1933.

 

6.                                       Termination.  Executive’s employment hereunder may be
terminated during the Employment Period under the following circumstances:

 

(a)                                  Death.  Executive’s employment hereunder shall
terminate upon his death.

 

(b)                                 Disability.  If, as a result of Executive’s incapacity due
to physical or mental illness, Executive shall have been substantially unable
to perform his duties hereunder for an entire period of one hundred twenty
(120) days, and within thirty (30) days after written Notice of Termination (as
defined in Section 7(a)) is given after such one hundred twenty (120) day
period, Executive shall not have returned to the substantial performance of his
duties on a full-time basis, the Company shall have the right to terminate
Executive’s employment hereunder for “Disability”, and such termination in and
of itself shall not be, nor shall it be deemed to be, a breach of this
Agreement.

 

(c)                                  Cause.  The Company shall have the right to terminate
Executive’s employment for Cause, and such termination in and of itself shall
not be, nor shall it be deemed to be, a breach of this Agreement.  For purposes of this Agreement, the Company
shall have “Cause” to terminate Executive’s employment upon Executive’s:

 

(i)                                     conviction
of, or plea of guilty or nolo contendere to, a felony; or

 

(ii)                                  willful
and continued failure to use reasonable best efforts to substantially perform
his duties hereunder (other than such failure resulting from Executive’s
incapacity due to physical or mental illness or subsequent to the issuance of a
Notice of Termination by Executive for Good Reason (as defined in Section 6(d))
after demand for substantial performance is delivered by the Company in writing
that specifically identifies the manner in which the Company believes Executive
has not used reasonable best efforts to substantially perform his duties; or

 

(iii)                               willful misconduct
(including, but not limited to, a willful breach of the provisions of Section 10)
that is materially economically injurious to the Company or to any Affiliate.

 

For purposes of this Section 6(c), no act, or
failure to act, by Executive shall be considered “willful” unless committed in
bad faith and without a reasonable belief that the act or omission was in the
best interests of the Company or any Affiliates thereof; provided, however,
that the willful requirement outlined in paragraphs (ii) or (iii) above shall
be deemed to have occurred if the Executive’s action or non-action continues
for more than ten (10) days after Executive has received written notice of the
inappropriate action or non-action.  Failure
to

 

6

 

achieve performance
goals, in and of itself, shall in no event be grounds for a termination for
Cause hereunder.  Cause shall not exist
under paragraph (ii) or (iii) above unless and until the Company has delivered
to Executive a copy of a resolution duly adopted by a majority of the Board
(excluding Executive for purposes of determining such majority) at a meeting of
the Board called and held for such purpose (after reasonable (but in no event
less than thirty (30) days) notice to Executive and an opportunity for
Executive, together with his counsel, to be heard before the Board), finding
that in the good faith opinion of the Board, Executive was guilty of the
conduct set forth in paragraph (ii) or (iii) and specifying the particulars
thereof in detail.  This Section 6(c)
shall not prevent Executive from challenging in any court of competent
jurisdiction the Board’s determination that Cause exists or that Executive has
failed to cure any act (or failure to act) that purportedly formed the basis
for the Board’s determination.

 

(d)                                 Good
Reason.  Executive may terminate
his employment for “Good Reason” within thirty (30) days after Executive has
actual knowledge of the occurrence, without the written consent of Executive,
of one of the following events that has not been cured within thirty (30) days
after written notice thereof has been given by Executive to the Company;
provided, however, that with respect to this Section 6(d) the Company
shall have the right to challenge in any court of competent jurisdiction the
Executive’s determination that he has the right to terminate his employment for
“Good Reason”:

 

(i)                                     the
failure to comply with Section 3(b) in nominating the Executive as a
director or appointing Executive as a member of the Investment Committee or any
successor committee or body (other than the Board itself) which succeeds to the
Investment Committee while any such committee exists, in each case, as required
hereunder;

 

(ii)                                  the
assignment to Executive of duties materially and adversely inconsistent with
Executive’s status as Chief Executive Officer of the Company or a material and
adverse alteration in the nature of Executive’s duties and/or responsibilities,
reporting obligations, titles or authority as Chief Executive Officer;

 

(iii)                               a reduction by the
Company in Executive’s Base Salary or a failure by the Company to pay any such
amounts when due;

 

(iv)                              a
reduction by the Company in Executive’s minimum bonus described in Section 5(b)
for calendar year 2005 or a failure by the Company to pay such amount when due;

 

(v)                                 a
reduction by the Company in the minimum long-term incentive grant described in Section 5(c)
for calendar year 2005 or a failure by the Company to grant such amount when
due;

 

(vi)                              the
relocation of the Company’s executive offices or Executive’s own office
location to a location that is more than fifty (50) miles from New York, New
York;

 

7

 

(vii)                           any purported termination of
Executive’s employment for Cause which is not effected pursuant to the
procedures of Section 6(c) (and for purposes of this Agreement, no such
purported termination shall be effective);

 

(viii)                        the Company’s failure to pay or
provide any material employee benefits due to be provided to Executive under
this Agreement;

 

(ix)                                the
Company’s failure to provide in all material respects the indemnification set
forth in Section 11 of this Agreement, or to require any successor to
assume and agree to perform this Agreement as set forth in Section 13 of
this Agreement; or

 

(xi)                                a
Change in Control (as defined below) of the Company.

 

Executive’s right to terminate his employment
hereunder for Good Reason shall not be affected by his incapacity due to
physical or mental illness.  Executive’s
continued employment during the thirty (30) day period referred to above in
this paragraph (d) shall not constitute consent to, or a waiver of rights with
respect to, any act or failure to act constituting Good Reason hereunder.

 

If Executive terminates employment hereunder for Good
Reason and is reemployed by the Company or any successor within six months of
such termination of employment, Executive’s termination of employment shall
retroactively not be considered a termination for Good Reason and Executive
shall have no entitlement to any payments or benefits pursuant to Section 8(a)
(including without limitation, Section 8(a)(iv)).  To the extent Executive has already received
payments or benefits pursuant to Section 8(a) (including without
limitation, Section 8(a)(iv)), Executive shall repay to the Company such
payments or benefits or make other equitable restitution to the Company, as the
Board shall determine.  It is the express
intent of Executive and the Company that the provisions of this paragraph
survive termination of this Agreement.

 

The expiration of this Agreement on June 30,
2010, without renewal or extension, or the termination of Executive by the
Company for Cause shall not in any event constitute Good Reason under this
Agreement.

 

For purposes of this Agreement, a “Change in Control”
of the Company means the occurrence of one of the following events:

 

(1)                                  individuals
who, on the Effective Date, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to the Effective Date whose
election or nomination for election was approved by a vote of a majority of the
Incumbent Directors then on the Board (either by a specific vote or by approval
of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual initially elected or
nominated as a director of the Company as a result of an actual or threatened
election contest with respect to directors or as a result of any other actual
or

 

8

 

threatened
solicitation of proxies by or on behalf of any person other than the Board
shall be an Incumbent Director;

 

(2)                                  any
“person” (as such term is defined in Section 3(a)(9) of the Securities
Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes, after the Effective Date, a “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 30% or more of the
combined voting power of the Company’s then outstanding securities eligible to
vote for the election of the Board (the “Company Voting Securities”); provided,
however, that an event described in this paragraph (2) shall not be deemed to
be a Change in Control if any of following becomes such a beneficial owner: (A)
the Company or any majority-owned entity (provided, that this exclusion applies
solely to the ownership levels of the Company or the majority-owned entity),
(B) any tax-qualified, broad-based employee benefit plan sponsored or
maintained by the Company or any majority-owned entity, (C) any underwriter
temporarily holding securities pursuant to an offering of such securities, (D)
any person pursuant to a Non-Qualifying Transaction (as defined in paragraph
(3)), or (E) Executive or any group of persons including Executive (or any
entity controlled by Executive or any group of persons including Executive);

 

(3)                                  the
consummation of a merger, consolidation, share exchange or similar form of
transaction involving the Company or any of its subsidiaries, or the sale of
all or substantially all of the Company’s assets (a “Business Transaction”),
unless immediately following such Business Transaction (i) more than 50% of the
total voting power of the entity resulting from such Business Transaction or
the entity acquiring the Company’s assets in such Business Transaction (the “Surviving
Corporation”) is beneficially owned, directly or indirectly, by the Company’s
shareholders immediately prior to any such Business Transaction, and (ii) no
person (other than the persons set forth in clauses (A), (B), or (C) of
paragraph (2) above or any tax-qualified, broad-based employee benefit plan of
the Surviving Corporation or its Affiliates) beneficially owns, directly or
indirectly, 30% or more of the total voting power of the Surviving Corporation
(a “Non-Qualifying Transaction”); or

 

(4)                                  Board
and to the extent necessary, shareholder approval of a liquidation or
dissolution of the Company, unless the voting common equity interests of an
ongoing entity (other than a liquidating trust) are beneficially owned,
directly or indirectly, by the Company’s shareholders in substantially the same
proportions as such shareholders owned the Company’s outstanding voting common
equity interests immediately prior to such liquidation and such ongoing entity
assumes all existing obligations of the Company to Executive under this
Agreement and the stock option agreements pursuant to which the stock options
were granted.

 

9

 

(e)                                  Without
Good Reason.  Executive shall have
the right to terminate his employment hereunder without Good Reason by
providing the Company with a Notice of Termination, and such termination shall
not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.

 

7.                                       Termination
Procedure.

 

(a)                                  Notice
of Termination.  Any termination
of Executive’s employment by the Company or by Executive during the Employment
Period (other than termination pursuant to Section 6(a)) shall be
communicated by written Notice of Termination to the other party hereto in
accordance with Section 14.  For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive’s employment under the provision
so indicated.

 

(b)                                 Date
of Termination.  “Date of
Termination” shall mean (i) if Executive’s employment is terminated by his
death, the date of his death, (ii) if Executive’s employment is terminated
pursuant to Section 6(b), thirty (30) days after Notice of Termination
(provided that Executive shall not have returned to the substantial performance
of his duties on a full-time basis during such thirty (30) day period), and
(iii) if Executive’s employment is terminated for any other reason, the date on
which a Notice of Termination is given or any later date (within thirty (30)
days after the giving of such notice) set forth in such Notice of Termination.

 

8.                                       Compensation
Upon Termination or During Disability. 
In the event Executive is disabled or his employment terminates during
the Employment Period, the Company shall provide Executive with the payments
and benefits set forth below; provided, however, as a specific condition to
being entitled to any payments or benefits under this Section 8, Executive
must have resigned as a director, trustee and officer of the Company and all of
its subsidiaries and Affiliates and as a member of any committee of the board
of directors and the board of trustees of the Company and its subsidiaries and
Affiliates of which he is a member and must have joined the Company in having
executed a mutual release of the Company and its Affiliates, in the form
attached hereto as Exhibit A.  Executive
acknowledges and agrees that the payments set forth in this Section 8
constitute liquidated damages for termination of his employment during the
Employment Period.

 

(a)                                  Termination
By Company Without Cause or By Executive for Good Reason.  If Executive’s employment is terminated by
the Company without Cause or by Executive for Good Reason:

 

(i)                                     the
Company shall pay to Executive his Base Salary and accrued vacation pay through
the Date of Termination, as soon as practicable following the Date of
Termination; and

 

(ii)                                  the Company shall pay to Executive a lump-sum
payment equal to two times Executive’s average annualized total cash
compensation paid or payable (limited to Base Salary and bonus only) for the
two (2) preceding fiscal

 

10

 

years of the Company ending on or prior to
termination as soon as practicable following the Date of Termination;

 

(iii)                               the Company shall maintain in full force and
effect, for the continued benefit of Executive, his spouse and his dependents
for a period of three (3) years following the Date of Termination the medical,
hospitalization, dental, and life insurance programs in which Executive, his
spouse and his dependents were participating immediately prior to the Date of
Termination at the level in effect and upon substantially the same terms and
conditions (including without limitation contributions required by Executive
for such benefits) as existed immediately prior to the Date of Termination;
provided, that if Executive, his spouse or his dependents cannot continue to
participate in the Company programs providing such benefits, the Company shall
arrange to provide Executive, his spouse and his dependents with the economic
equivalent of such benefits which they otherwise would have been entitled to
receive under such plans and programs (“Continued Benefits”), provided, that
such Continued Benefits shall terminate on the date or dates Executive receives
substantially equivalent coverage and benefits, without waiting period or
pre-existing condition limitations, under the plans and programs of a
subsequent employer (such coverage and benefits to be determine on a
coverage-by-coverage, or benefit-by-benefit, basis);

 

(iv)                              the Company shall pay to Executive (x) $800,000
if the termination of employment occurs prior to payment of the 2005 Bonus
pursuant to Section 5(b), and (y) $800,000 if the termination of
employment occurs before the grant of the 2005 Equity Award pursuant to Section 5(c)
(for a total of $1,600,000 if the termination of employment occurs prior to
both the payment of the 2005 Bonus and the grant of the 2005 Equity Award);

 

(v)                                 the
Company shall reimburse Executive pursuant to Section 5(e) for reasonable
expenses incurred, but not paid prior to such termination of employment;

 

(vi)                              Executive
shall be entitled to any other rights, compensation and/or benefits as may be
due to Executive in accordance with the terms and provisions of any agreements,
plans or programs of the Company;

 

(vii)                           stock options and restricted
stock granted to Executive more than one year prior to the Date of Termination (including
stock options and restricted stock that vest based on the passage of time, and
stock options and restricted stock that vest based on performance) shall fully
vest as of the Date of Termination;

 

(viii)                        the 2005 Equity Award if
previously granted to Executive in accordance with Section 5(c) and any
Outperform Shares previously granted to Executive in accordance with Section 5(d)
shall fully vest as of the Date of Termination; and

 

11

 

(ix)                                if
Executive’s Date of Termination precedes the otherwise applicable end-date for
a performance period under Section 5(d), the Company shall treat the Date
of Termination as the end-date for the performance period, and Executive shall
receive an award of unrestricted and fully vested Outperform Shares (otherwise
determined in accordance with Section 5(d)) in the event either of the two
performance thresholds set forth in Section 5(d) are satisfied as of the
Date of Termination.

 

The foregoing notwithstanding, the total of the
severance payments payable under this Section 8(a) shall be reduced to the
extent the payment of such amounts would cause Executive’s total termination
benefits (as determined by Executive’s tax advisor) to constitute an “excess”
parachute payment under Section 280G of the Internal Revenue Code of 1986,
as amended (the “Code”) and by reason of such excess parachute payment
Executive would be subject to an excise tax under Section 4999(a) of the
Code, but only if Executive determines that the after-tax value of the
termination benefits calculated with the foregoing restriction exceed those
calculated without the foregoing restriction.

 

(b)                                 Cause
or By Executive Without Good Reason. 
If Executive’s employment is terminated by the Company for Cause or by
Executive (other than for Good Reason):

 

(i)                                     the
Company shall pay Executive his Base Salary and, to the extent required by law
or the Company’s vacation policy, his accrued vacation pay through the Date of
Termination, as soon as practicable following the Date of Termination; and

 

(ii)                                  the
Company shall reimburse Executive pursuant to Section 5(e) for reasonable
expenses incurred, but not paid prior to such termination of employment, unless
such termination resulted from a misappropriation of Company funds; and

 

(iii)                               Executive shall be
entitled to any other rights, compensation and/or benefits as may be due to
Executive in accordance with the terms and provisions of any agreements, plans
or programs of the Company.

 

(c)                                  Disability.  During any period that Executive fails to
perform his duties hereunder as a result of incapacity due to physical or
mental illness (“Disability Period”), Executive shall continue to receive his
full Base Salary set forth in Section 5(a) until his employment is
terminated pursuant to Section 6(b). 
In the event Executive’s employment is terminated for Disability
pursuant to Section 6(b):

 

(i)                                     the
Company shall pay to Executive (A) his Base Salary and accrued vacation pay
through the Date of Termination, as soon as practicable following the Date of
Termination, and (B) continued Base Salary (as provided for in Section 5(a))
for six (6) months; and

 

(ii)                                  the
Company shall reimburse Executive pursuant to Section 5(e) for reasonable
expenses incurred, but not paid prior to such termination of employment;

 

12

 

(iii)                               stock options and restricted
stock granted to Executive more than one year prior to the Date of Termination that
vest based on the passage of time (but not stock options and restricted stock
that vest based on performance) shall fully vest as of the Date of Termination;

 

(iv)                              the
portion of the 2005 Equity Award that vests based on the passage of time (to
the extent not granted to Executive more than one year prior to the Date of Termination)
and any Outperform Shares previously granted to Executive in accordance with Section 5(d)
shall fully vest as of the Date of Termination;

 

(v)                                 if
Executive’s Date of Termination precedes the otherwise applicable end-date for either
performance period under Section 5(d), the Company shall treat the Date of
Termination as the end-date for the performance period, and Executive shall
receive an award of unrestricted and fully vested Outperform Shares (otherwise
determined in accordance with Section 5(d)) in the event either of the two
performance thresholds set forth in Section 5(d) are satisfied as of the
Date of Termination; and

 

(vi)                              Executive
shall be entitled to any other rights, compensation and/or benefits as may be
due to Executive in accordance with the terms and provisions of any agreements,
plans or programs of the Company.

 

(d)                                 Death.  If Executive’s employment is terminated by
his death:

 

(i)                                     the
Company shall pay in a lump sum to Executive’s beneficiary, legal
representatives or estate, as the case may be, Executive’s Base Salary through
the Date of Termination and one (1) times Executive’s annual rate of Base
Salary;

 

(ii)                                  the
Company shall reimburse Executive’s beneficiary, legal representatives, or
estate, as the case may be, pursuant to Section 5(e) for reasonable
expenses incurred, but not paid prior to such termination of employment;

 

(iii)                               stock options and restricted
stock granted to Executive more than one year prior to the Date of Termination
that vest based on the passage of time (but not stock options and restricted
stock that vest based on performance) shall fully vest as of the Date of
Termination;

 

(iv)                              the
portion of the 2005 Equity Award that vests based on the passage of time (to
the extent not granted to Executive more than one year prior to the Date of
Termination) and any Outperform Shares previously granted to Executive in
accordance with Section 5(d) shall fully vest as of the Date of
Termination;

 

(v)                                 if
Executive’s Date of Termination precedes the otherwise applicable end-date for
a performance period under Section 5(d), the Company

 

13

 

shall
treat the Date of Termination as the end-date for the performance period, and
Executive shall receive an award of unrestricted and fully vested Outperform
Shares (otherwise determined in accordance with Section 5(d)) in the event
either of the two performance thresholds set forth in Section 5(d) are
satisfied as of the Date of Termination.

 

(vi)                              Executive’s
beneficiary, legal representatives or estate, as the case may be, shall be
entitled to any other rights, compensation and benefits as may be due to any
such persons or estate in accordance with the terms and provisions of any
agreements, plans or programs of the Company.

 

(e)                                  Bonus.  In the event the Executive’s termination of
employment occurs after the end of any fiscal year of the Company for which the
Compensation Committee has established in writing an objective annual bonus
performance criteria, Executive’s termination is not for Cause and Executive’s
termination occurs prior to the date bonuses for senior executives are paid for
the fiscal year, the Executive shall be entitled to payment of any bonus which
is earned by reason of achievement of any such performance criteria for such
fiscal year according to the performance criteria established, without regard
to whether the Executive’s termination of employment precedes the bonus payment
date.

 

9.                                       Mitigation.  Executive shall not be required to mitigate
amounts payable under this Agreement by seeking other employment or otherwise,
and there shall be no offset against amounts due Executive under this Agreement
on account of subsequent employment. Additionally, amounts owed to Executive
under this Agreement shall not be offset by any claims the Company may have
against Executive, and the Company’s obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by any other circumstances, including, without limitation, any
counterclaim, recoupment, defense or other right which the Company may have
against Executive or others.

 

10.                                 Confidential
Information; Ownership of Documents; Non-Competition.

 

(a)                                  Confidential
Information.  Executive shall
hold in a fiduciary capacity for the benefit of the Company all trade secrets
and confidential information, knowledge or data relating to the Company and its
businesses and investments, which shall have been obtained by Executive during
Executive’s employment by the Company and which is not generally available
public knowledge (other than by acts by Executive in violation of this
Agreement).  Except as may be required or
appropriate in connection with his carrying out his duties under this
Agreement, Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or any legal process, or as is
necessary in connection with any adversarial proceeding against the Company (in
which case Executive shall use his reasonable best efforts in cooperating with
the Company in obtaining a protective order against disclosure by a court of
competent jurisdiction), communicate or divulge any such trade secrets,
information, knowledge or data to anyone other than the Company and those
designated by the Company or on behalf of the Company in the furtherance of its
business or to perform duties hereunder.

 

14

 

(b)                                 Removal
of Documents; Rights to Products. 
All records, files, drawings, documents, models, equipment, and the like
relating to the Company’s business, which Executive has control over shall not
be removed from the Company’s premises without its written consent, unless such
removal is in the furtherance of the Company’s business or is in connection
with Executive’s carrying out his duties under this Agreement and, if so
removed, shall be returned to the Company promptly after termination of
Executive’s employment hereunder, or otherwise promptly after removal if such
removal occurs following termination of employment.  Executive shall assign to the Company all
rights to trade secrets and other products relating to the Company’s business
developed by him alone or in conjunction with others at any time while employed
by the Company.

 

(c)                                  Protection
of Business.  Subject to the
provisions set forth below in this Section 10(c), if during the Employment
Period the Executive is terminated by the Company for Cause or Executive
terminates employment without Good Reason, until the first anniversary of
Executive’s Date of Termination, the Executive will not (i) serve as an
officer, employee, director or consultant of a REIT or other real estate
business with a significant portion of its business involved with community or
neighborhood shopping centers; (ii) divert to any entity which is engaged in
any business conducted by the Company or any of its Affiliates (“Designated
Entities”) in the same geographic area as the Designated Entities, any Project
of any of the Designated Entities; or (iii) solicit any officer, employee
(other than secretarial staff) or consultant of any of the Designated Entities
to leave the employ of any of the Designated Entities.  Notwithstanding the preceding sentence,
Executive shall not be prohibited from owning less than three (3%) percent of
any publicly traded corporation, whether or not such corporation is in
competition with the Company.  If, at any
time, the provisions of this Section 10(c) shall be determined to be
invalid or unenforceable, by reason of being vague or unreasonable as to area,
duration or scope of activity, this Section 10(c) shall be considered
divisible and shall become and be immediately amended to only such area,
duration and scope of activity as shall be determined to be reasonable and
enforceable by the court or other body having jurisdiction over the matter; and
Executive agrees that this Section 10(c) as so amended shall be valid and
binding as though any invalid or unenforceable provision had not been included
herein.

 

Notwithstanding anything to the contrary in this Section 10(c),
if Executive terminates employment without Good Reason during the Employment
Period but on or after February 23, 2008, the one-year noncompetition
restriction described above shall be inapplicable, unless following Executive’s
notice of resignation, the Company were to offer Executive a new employment
contract including terms and conditions of employment consistent with then
current chief executive officer contracts for the Company’s peer group set
forth in Exhibit A of this Agreement.

 

The noncompetition restriction set forth above shall
not apply in the event Executive’s employment terminates upon or following expiration
of this agreement without renewal on June 30, 2010.

 

(d)                                 Injunctive
Relief.  In the event of a breach
or threatened breach of this Section 10, Executive agrees that the Company
shall be entitled to injunctive relief in a court of appropriate jurisdiction
to remedy any such breach or threatened breach, Executive acknowledging that
damages would be inadequate and insufficient.

 

15

 

(e)                                  Continuing
Operation.  Except as
specifically provided in this Section 10, the termination of Executive’s
employment or of this Agreement shall have no effect on the continuing
operation of this Section 10.

 

11.                                 Indemnification.

 

(a)                                  General.  The Company agrees that if Executive is made
a party or a threatened to be made a party to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), by reason
of the fact that Executive is or was a trustee, director or officer of the
Company or any subsidiary of the Company or is or was serving at the request of
the Company or any subsidiary as a trustee, director, officer, member, employee
or agent of another corporation or a partnership, joint venture, trust or other
enterprise, including, without limitation, service with respect to employee
benefit plans, whether or not the basis of such Proceeding is alleged action in
an official capacity as a trustee, director, officer, member, employee or agent
while serving as a trustee, director, officer, member, employee or agent,
Executive shall be indemnified and held harmless by the Company to the same
extent as other officers and directors, as in effect from time to time, against
all Expenses incurred or suffered by Executive in connection therewith, and
such indemnification shall continue as to Executive even if Executive has
ceased to be an officer, director, trustee or agent, or is no longer employed
by the Company and shall inure to the benefit of his heirs, executors and
administrators.

 

(b)                                 Expenses.  As used in this Agreement, the term “Expenses”
shall include, without limitation, damages, losses, judgments, liabilities,
fines, penalties, excise taxes, settlements, and costs, attorneys’ fees,
accountants’ fees, and disbursements and costs of attachment or similar bonds,
investigations, and any expenses of establishing a right to indemnification
under this Agreement.

 

(c)                                  Enforcement.  If a claim or request under this Agreement is
not paid by the Company or on its behalf, within thirty (30) days after a
written claim or request has been received by the Company, Executive may at any
time thereafter bring suit against the Company to recover the unpaid amount of
the claim or request and, if Executive prevails in respect to the material
issues, Executive shall be entitled to be paid also the Expenses of prosecuting
such suit.  All obligations for
indemnification hereunder shall be subject to, and paid in accordance with,
applicable Maryland law.

 

(d)                                 Partial
Indemnification.  If Executive is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any Expenses, but not, however, for the total
amount thereof, the Company, shall nevertheless indemnify Executive for the
portion of such Expenses to which Executive is entitled.

 

(e)                                  Advances
of Expenses.  Expenses incurred
by Executive in connection with any Proceeding shall be paid by the Company in
advance upon request of Executive that the Company pay such Expenses; but only
in the event that Executive shall have delivered in writing to the Company (i)
an undertaking to reimburse the Company for Expenses with respect to which
Executive is not entitled to indemnification and (ii) an affirmation of his
good faith belief that the standard of conduct necessary for indemnification by
the Company has been met.

 

16

 

(f)                                    Notice
of Claim.  Executive shall give
to the Company notice of any claim made against him for which indemnification
will or could be sought under this Agreement. In addition, Executive shall give
the Company such information and cooperation as it may reasonably require and
as shall be within Executive’s power and at such times and places as are
convenient for Executive.

 

(g)                                 Defense
of Claim. With respect to any Proceeding as to which Executive notifies
the Company of the commencement thereof:

 

(i)                                     The
Company will be entitled to participate therein at its own expense; and

 

(ii)                                  Except
as otherwise provided below, to the extent that it may wish, the Company will
be entitled to assume the defense thereof, with counsel reasonably satisfactory
to Executive, which in the Company’s sole discretion may be regular counsel to
the Company and may be counsel to other officers and directors of the Company
or any subsidiary.  Executive also shall
have the right to employ his own counsel in such action, suit or proceeding if
he reasonably concludes that failure to do so would involve a conflict of
interest between the Company and Executive, and under such circumstances the
fees and expenses of such counsel shall be at the expense of the Company.

 

(iii)                               The Company shall not be
liable to indemnify Executive under this Agreement for any amounts paid in
settlement of any action or claim effected without its written consent.  The Company shall not settle any action or
claim in any manner which would impose any penalty or limitation on Executive
without Executive’s written consent. 
Neither the Company nor Executive will unreasonably withhold or delay
their consent to any proposed settlement.

 

(h)                                 Non-exclusivity.  The right to indemnification and the payment
of expenses incurred in defending a Proceeding in advance of its final
disposition conferred in this Section 11 shall not be exclusive of any
other right which Executive may have or hereafter may acquire under any
statute, provision of the declaration of trust or certificate of incorporation
or by-laws of the Company or any subsidiary, agreement, vote of shareholders or
disinterested directors or trustees or otherwise.

 

12.                                 Legal
Fees and Expenses.  If any contest or
dispute shall arise between the Company and Executive regarding any provision
of this Agreement, the Company shall reimburse Executive for all legal fees and
expenses reasonably incurred by Executive in connection with such contest or
dispute, but only if Executive prevails in respect of the material issues in
dispute of Executive’s claims brought and pursued in connection with such
contest or dispute.  Such reimbursement
shall be made as soon as practicable following the final resolution of such
contest or dispute to the extent the Company receives reasonable written
evidence of such fees and expenses.

 

17

 

13.                                 Successors;
Binding Agreement.

 

(a)                                  Company’s
Successors.  No rights or
obligations of the Company under this Agreement may be assigned or transferred
except that the Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.  As used in this Agreement, “Company”
shall mean the Company as herein before defined and any successor to its
business and/or assets (by merger, purchase or otherwise) which executes and
delivers the agreement provided for in this Section 13 or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of
law.

 

(b)                                 Executive’s
Successors.  No rights or
obligations of Executive under this Agreement may be assigned or transferred by
Executive other than his rights to payments or benefits hereunder, which may be
transferred only by will or the laws of descent and distribution. Upon
Executive’s death, this Agreement and all rights of Executive hereunder shall
inure to the benefit of and be enforceable by Executive’s beneficiary or
beneficiaries, personal or legal representatives, or estate, to the extent any
such person succeeds to Executive’s interests under this Agreement.  Executive shall be entitled to select and change
a beneficiary or beneficiaries to receive any benefit or compensation payable
hereunder following Executive’s death by giving the Company written notice
thereof.  In the event of Executive’s
death or a judicial determination of his incompetence, reference in this
Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary(ies), estate or other legal representative(s).  If Executive should die following his Date of
Termination while any amounts would still be payable to him hereunder if he had
continued to live, all such amounts unless otherwise provided herein shall be
paid in accordance with the terms of this Agreement to such person or persons
so appointed in writing by Executive, or otherwise to his legal representatives
or estate.

 

14.                                 Notice.  All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if delivered
personally, or sent by nationally-recognized, overnight courier or by
registered or certified mail, return receipt requested and postage prepaid,
addressed as follows:

 

If to Executive:

 

Mr.
Glenn J. Rufrano

c/o
New Plan Excel Realty Trust, Inc.

420
Lexington Avenue

New
York, NY 10070

 

If to the Company:

 

New Plan Excel Realty Trust, Inc.

1120 Ave of the Americas

New York, NY 10036

Attn:  General
Counsel

 

18

 

or to such other address as any party may have
furnished to the others in writing in accordance herewith.  All such notices and other communications
shall be deemed to have been received (a) in the case of personal delivery, on
the date of such delivery, (b) in the case of delivery by nationally-recognized,
overnight courier, on the business day following dispatch and (c) in the case
of mailing, on the third business day following such mailing.

 

15.                                 Miscellaneous.  No provisions of this Agreement may be
amended, modified, or waived unless such amendment or modification is agreed to
in writing signed by Executive and by a duly authorized officer of the Company,
and such waiver is set forth in writing and signed by the party to be
charged.  No waiver by either party
hereto at any time of any breach by the other party hereto of any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement. 
The respective rights and obligations of the parties hereunder of this
Agreement shall survive Executive’s termination of employment and the
termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations. 
The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of New York without regard
to its conflicts of law principles.

 

16.                                 Validity.  The invalidity or unenforceability of any
provision or provisions 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.

 

17.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

18.                                 Entire
Agreement.  This Agreement sets forth
the entire agreement of the parties hereto in respect of the subject matter
contained herein and supersede all prior agreements, promises, covenants,
arrangements, communications, representations or warranties, whether oral or
written, by any officer, director, employee or representative of any party
hereto in respect of such subject matter. 
Any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and canceled.

 

19.                                 Attorney
Fees.  The Company shall pay, or
reimburse Executive for, at Executive’s discretion, reasonable attorney fees
actually incurred by Executive in connection with the negotiation, execution
and delivery of this Agreement in an amount up to twenty-five thousand dollars
($25,000).

 

20.                                 Withholding.  All payments hereunder shall be subject to
any required withholding of Federal, state and local taxes pursuant to any
applicable law or regulation.

 

21.                                 Noncontravention.  The Company represents that the Company is
not prevented from entering into, or performing this Agreement by the terms of
any law, order, rule or regulation, its by-laws or certificate of
incorporation, or any agreement to which it is a party,

 

19

 

other than which would
not have a material adverse effect on the Company’s ability to enter into or
perform this Agreement.  Executive
represents to the Company that he is not a party to any contract that would
preclude him from accepting employment as Chief Executive Officer and President
of the Company and he has no reason to believe that accepting employment as
Chief Executive Officer and President of the Company would result in a
disclosure of any confidential information of any prior employer.

 

22.                                 Section Headings.  The section headings in this Agreement
are for convenience of reference only, and they form no part of this Agreement
and shall not affect its interpretation.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on

 

the date first above written.

 

	
   

  	
  NEW PLAN EXCEL
  REALTY TRUST, INC.,

  
	
   

  	
  a Maryland
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F.
  Siegel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Glenn J. Rufrano

  	
   

  
	
   

  	
  Glenn J. Rufrano

  

 

20

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