Document:

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                                                                   Exhibit 10.43

                    PENSION PLAN FOR EXECUTIVE EMPLOYEES OF
                  COMMUNICATION & POWER INDUSTRIES CANADA INC.
                       (AS APPLICABLE TO JOE CALDARELLI)

                         EFFECTIVE FROM JANUARY 1, 2002

SIGNED AT Georgetown this 17 DAY OF DECEMBER 2002.

/s/ Illegible
    ----------------------------------------
    SIGNATURE

    Director of Finance
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    TITLE
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                               TABLE OF CONTENTS

SECTIONS                                               PAGES
--------                                               -----

1.   -    DEFINITIONS                                  1-3

2.   -    ELIGIBILITY AND MEMBERSHIP                   4

3.   -    CONTRIBUTIONS                                5

4.   -    RETIREMENT                                   6-10

5.   -    OPTIONAL FORMS OF PENSION                    11

6.   -    BENEFITS ON TERMINATION OF EMPLOYMENT        12

7.   -    BENEFITS ON DEATH                            13-14

8.   -    PORTABILITY                                  15

9.   -    LEAVES OF ABSENCE                            16-17

10.  -    PENSION FUND                                 18

11.  -    CHANGE OR TERMINATION OF THE PLAN            19

12.  -    GENERAL                                      20-21

          SUPPLEMENT A

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SECTION 1 - DEFINITIONS

1.01      In this text the following words and phrases shall have the meanings
          given unless the context clearly requires a different meaning.
          Reference to the male gender includes the female gender. Words
          implying the singular may be taken to mean the plural, and the plural
          may be taken to mean the singular.

1.02      "ACTUARY" means a person qualified as a Fellow of the Canadian
          Institute of Actuaries appointed as Actuary for the Plan by the
          Employer.

1.03      "ACTUARIAL EQUIVALENT" means a benefit of equivalent value determined
          on the basis of mortality tables, rates of interest and rules adopted
          from time to time by the Employer for this purpose on the
          recommendation of the Actuary.

1.04      "APPLICABLE LEGISLATION" means the Ontario Pension Benefits Act
          (including any regulations thereunder), any Act of a similar nature of
          any other Province (including any regulations thereunder) or that Act
          which may be applicable if only one of the said Acts be applicable,
          and shall include the Income Tax Act of Canada and the regulations
          thereunder and any administrative rules pursuant thereto.

1.05      "COMMUTED VALUE" means the value calculated in the manner prescribed
          by Applicable Legislation as of a fixed date of a pension, a deferred
          pension, a pension benefit or an ancillary benefit, determined in
          accordance with the "Recommendations for the Computation of Transfer
          Values from Registered Pension Plans" issued by the Canadian Institute
          of Actuaries.

1.06      "CONNECTED EMPLOYEE" means an Employee who is a connected person as
          defined under Income Tax Regulation 8500(3).

1.07      "CONSUMER PRICE INDEX" means the Canada all-terms Consumer Price
          Index as published by Statistics Canada.

1.08      "CONTINUOUS", means, in relation to membership in the Plan or to
          employment, without regard to periods of temporary interruption of the
          membership or employment.

1.09      "DATE OF CALCULATION" means the earliest of the date of retirement,
          date of termination of employment, date of death or date of
          termination of the Plan.
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                                                                               2

1.10      "EARNINGS" means the total salary received by the Member from the
          Employer during the Plan Year, including any payment for commissions,
          bonuses and profit-sharing.

          Further, in respect of a Member who is Non-Connected Employee,
          Earnings for a Plan Year after 1990 shall include (in addition to the
          above) prescribed compensation during any qualifying period in that
          year, determined in accordance with Applicable Legislation.

1.11      "EFFECTIVE DATE" has the meaning so described Supplement A.

1.12      "EMPLOYEE" has the meaning so described in Supplement A.

1.13      "EMPLOYER" has the meaning so described in Supplement A.

1.14      "HIGHEST AVERAGE INDEXED EARNINGS" at any date means the average of
          the Member's highest three years of Indexed Earnings preceding that
          date or, if the Member has less than three years of Indexed Earnings,
          the average of such lesser number of years.

1.15      "INDEXED EARNINGS" means, for a given Plan Year, Earnings adjusted to
          the Date of Calculation to reflect increases after the year, or after
          1986, if later, in the average weekly wages and salaries of the
          Industrial Aggregate as published by Statistics Canada.

1.16      "MEMBER" means an Employee who is enrolled as a Member of the Plan in
          accordance with Section 2 and includes a Member who has retired or
          terminated employment and continues to have rights under the Plan.

1.17      "NON-CONNECTED EMPLOYEE" means an Employee who is not a Connected
          Employee.

1.18      "PAST SERVICE PENSION ADJUSTMENT" of a Member for a calendar year
          means the accumulated past service pension adjustment of the Member
          for the year with respect to the Employer, determined as of the end
          of the year in accordance with Applicable Legislation.

1.19      "PENSIONABLE SERVICE" has the meaning so described in Supplement A.

1.20      "PENSION ADJUSTMENT" of a Member for a calendar year means the
          aggregate of all amounts each of which is the pension credit for the
          year in respect of the Employer under the terms of the Plan,
          determined in accordance with Applicable Legislation.
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                                                                               3

1.21  "PENSION FUND" has the meaning so described in this Plan.

1.22  "PLAN" has the meaning so described in Supplement A.

1.23  "PLAN YEAR" means the period from any January 1 to December 31 of the
      same calendar year.

1.24  "SAME-SEX PARTNER", in relation to a Member, means a person of the same
      sex who is living together in a conjugal relationship with the Member,

      (a)   continuously for a period of not less than three years, or

      (b)   in a relationship of some permanence, if they are the natural or
            adoptive parents of a child, both as defined in the Family Law Act.

1.25  "SPOUSE", in relation to a Member, means,

      (a)   if there is no person described in (b) below, a person of the
            opposite sex who is married to the Member, or

      (b)   a person of the opposite sex who is not married to the Member and is
            living together in a conjugal relationship with the Member,

            (i)   continuously for a period of not less than three years, or

            (ii)  in a relationship on some permanence, if such person and the
                  Member are the natural or adoptive parents of a child, both
                  as defined in the Family Law Act

      provided that the person so determined as the Member's Spouse under (a)
      or (b) above is not living separate or apart from the Member at the
      relevant time.

1.26  "TEMPORARY ABSENCE" means a period of absence from work in respect of a
      Member who is not a Connected Employee at any time after 1990.

      The aggregate of such periods of temporary absence shall not exceed 5
      years. Periods of parenting leave up to 12 months each and to an
      aggregate of 3 years, may be added to the said 5 year limit. Period of
      parenting leave is as defined under Income Tax Regulation 8507(3)(b).

1.27  "YEARLY MAXIMUM PENSIONABLE EARNINGS" means the amount established each
      calendar year under the Canada/Quebec Pension Plan.

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                                                                               4

SECTION 2 - ELIGIBILITY AND MEMBERSHIP

2.01      Membership in the Plan is optional.

2.02      An Employee who elects to join the Plan shall become a Member of the
          Plan on the date of his commencement of employment with the Employer
          or the Effective Date, whichever is later.

2.03      To become a Member of the Plan, an Employee must complete an
          application form on which he designates a beneficiary and identifies
          his Spouse, if any.

2.04      A Member may not terminate membership in the Plan while employed by
          the Employer.

2.05      Every Member shall receive a written explanation of the pertinent
          provisions of the Plan and of any amendments to it together with an
          explanation of his rights and duties and any other information in
          accordance with Applicable Legislation. A copy of the Plan and related
          documents shall be available for inspection by any Member.
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                                                                               5

SECTION 3 - CONTRIBUTIONS

3.01      MEMBER CONTRIBUTIONS

          A Member is not required nor permitted to contribute to the Plan. All
          costs will be borne by the Employer.

3.02      EMPLOYER CONTRIBUTIONS

          The Employer shall pay into the Plan in monthly instalments within 30
          days after the month for which contributions are payable, such amounts
          as are deemed "Employer eligible contributions". An Employer eligible
          contribution is a contribution made by the Employer to the Plan that
          is a prescribed contribution or complies with prescribed conditions
          as per Applicable Legislation and the contribution is made pursuant to
          the recommendation of the Actuary.

          Subject to any Applicable Legislation, the costs of performing
          actuarial and administrative services in relation to the Plan shall be
          paid out of the Pension Fund, unless the Employer decides to pay it
          directly.
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                                                                               6

SECTION 4 - RETIREMENT

4.01      NORMAL RETIREMENT

          A Member's Normal Retirement Date shall be the first of the month
          coincident with or next following the Member's 65th birthday.

4.02      The amount of annual pension accrued at any date and payable from
          Normal Retirement Date shall be as described in Supplement A.

4.03      EARLY RETIREMENT

          A Member may retire early on the first of any month within 10 years
          of his Normal Retirement Date.

4.04      The amount of annual pension payable at early retirement will be the
          lesser of (a) and (b) below:

          (a)  the Actuarial Equivalent of the pension accrued to the date of
               early retirement and otherwise payable from the Member's Normal
               Retirement Date, and

          (b)  the pension accrued to the date of early retirement and otherwise
               payable from the Member's Normal Retirement Date, reduced by the
               early retirement reduction factor prescribed by Income Tax
               Regulation 8503(3)(c).

4.05      LATE RETIREMENT

          A Member, who with the consent of the Employer remains in service
          after his Normal Retirement Date, may delay receipt of his pension to
          the first day of the month coincident with or following his actual
          retirement or the first day of the month prior to the end of the
          calendar year of his 69th birthday, whichever first occurs.

4.06      The amount of annual pension payable at late retirement shall be the
          sum of (a) and (b) below:

          (a)  the Actuarial Equivalent of the pension accrued according to
               Supplement A to the Member's Normal Retirement Date,

          (b)  the pension accrued according to Supplement A to the date of late
               retirement for each year, or part thereof, of Pensionable Service
               after the Member's Normal Retirement Date.
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                                                                               7

4.07      NORMAL FORM OF PENSION

          Pension payments will commence on the date that the Member actually
          retires and will be paid in equal monthly instalments of one-twelfth
          the annual amount.

          (a)  Subject to the provisions set out in (c) below, if the Member
               does not have a Spouse at the time pension commences to be paid,
               pension payments shall cease with the last payment due prior to
               the Member's death or after 180 monthly payments have been made,
               whichever occurs later. If the Member were to die before the said
               180 monthly payments had been made, then the Commuted Value of
               the remaining payments would be paid to the Member's beneficiary
               in a lump sum.

          (b)  Subject to the provisions set out in (c) below, if the Member
               has a Spouse or a Same-Sex Partner at the time pension commences
               to be paid, pension payments shall be made throughout the
               Member's lifetime for a minimum of 60 monthly payments with the
               provision that after the death of the Member or after 60
               monthly payments have been made, whichever occurs later, pension
               payments will continue to his Spouse or Same-Sex Partner
               throughout the lifetime of the Spouse or Same-Sex Partner at the
               rate of 66 2/3% of the Member's pension.

               If the Member were to die before the said minimum of 60 monthly
               payments had been made, then the said payments will continue in
               full to the surviving Spouse or Same-Sex Partner until the
               balance of the 60 monthly payments has been made and will then
               reduce to 66 2/3%. If the Spouse or Same-Sex Partner were also
               to die before the said minimum of 60 monthly payments had been
               made, then the Commuted Value of the remaining payments would be
               paid to the estate of the Member, in a lump sum.

          (c)  Notwithstanding anything to the contrary, the parties who are
               entitled to the joint life and survivor pension under (b) above,
               may waive their entitlement to receive payment of such pension
               by delivering to the administrator of the Plan a written waiver
               in the manner and in the form prescribed by Applicable
               Legislation within 12 months prior to the date the pension is to
               commence. In that event the Member shall be deemed as not having
               a Spouse or Same-Sex Partner at the time pension commences to be
               paid and shall be entitled to receive the form of pension
               pursuant to (a) above.

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                                                                               8

4.08      INDEXATION

          The pension being paid under any provision of the Plan to a Member,
          his Spouse or Same-Sex Partner will be increased annually on January
          1 each year, commencing from January 1 following the date of
          commencement of such pension.

          Such increases will be based on the average rate of increase in the
          Consumer Price Index during the previous calendar year, or part
          thereof, in respect of which pension payments were made, less 1%.

4.09      CASH SETTLEMENT OF SMALL PENSIONS

          If the annual pension benefit payable at Normal Retirement Date under
          any provision of the Plan is less than 2% of the Yearly Maximum
          Pensionable Earnings for the calendar year in which the Member
          retires, dies or terminates employment, then a lump sum equal to the
          Commuted Value of the pension shall be paid instead.

4.10      MAXIMUM PENSION LIMIT

          The maximum pension limit at any given time for lifetime retirement
          benefits shall not exceed the limit stipulated under the Income Tax
          Act as at that given time. The current limit is specified first for
          the year in which the pension commences to be paid and is stated as
          follows:

          (a)  In respect of Pensionable Service prior to January 1, 1990:

               The lesser of (i) and (ii) below:

               (i)  2% of the Member's Highest Average Indexed Earnings times
                    the number of years of Pensionable Service prior to 1990,
                    and

               (ii) $1,150 (or any higher limit allowed under Applicable
                    Legislation) times the number of years of Pensionable
                    Service prior to 1990.
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                                                                              9

      (b)   In respect of Pensionable Service in the year 1990:

            The lesser of (i) and (ii) below:

            (i)   2% of the Member's Highest Average Indexed Earnings for the
                  year 1990, and

            (ii)  $1,722.22 (or any higher limit allowed under Applicable
                  Legislation) times the fraction of the year 1990 that is
                  Pensionable Service.

      (c)   In respect of Pensionable Service of a Member, who is a
            Non-Connected Employee, on or after January 1, 1991:

            The lesser of (i) and (ii) below:

            (i)   2% of the Member's Highest Average Indexed Earnings times the
                  number of years of Pensionable Service after 1990 as a
                  Non-Connected Employee, and

            (ii)  $1,722.22 (or any higher limit allowed under Applicable
                  Legislation) times the number of years of Pensionable Service
                  after 1990 as a Non-Connected Employee.

      (d)   In respect of Pensionable Service of a Member, who is a Connected
            Employee, on or after January 1, 1991:

            The aggregate of the lesser of (i) and (ii) below:

            (i)   2% of the Member's Indexed Earnings for each year as a
                  Connected Employee, and

            (ii)  $1,722.22 (or any higher limit allowed under Applicable
                  Legislation) times the fraction of each year that is
                  Pensionable Service as a Connected Employee.

      The number of years of Pensionable Service prior to January 1, 1991 shall
      not exceed 35.

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                                                                              10

After a pension commences, the maximum pension limit is the limit for the year
of pension commencement (as described above) adjusted from that time in
accordance with increases in the Consumer Price Index as prescribed by
Applicable Legislation.

The above rule applies to all pension benefits payable under the Plan including
any amount payable to the Member's Spouse or Same-Sex Partner as a result of
breakdown of marriage or conjugal relationship, whether payable upon
retirement, termination of employment or termination of the Plan.
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                                                                              11

SECTION 5 - OPTIONAL FORMS OF PENSION

5.01      A Member who has no Spouse or Same-Sex Partner shall not be permitted
          to elect any of the following optional forms of pension.

          A Member who has a Spouse or Same-Sex Partner may, by written
          designation to the Employer, elect to have his pension paid in one of
          the optional forms described in Section 5.02 instead of in the normal
          form described in Section 4.07(b).

          The election of this optional form of pension may be rescinded at any
          time before pension payments commence but may not be rescinded after
          the commencement of pension payments.

          The amount of this optional form of pension shall be the Actuarial
          Equivalent of the pension otherwise payable in the normal form
          pursuant to Section 4.07(b).

5.02      A reduced amount of pension would be payable throughout the Member's
          lifetime, with the provision that after the death of the Member,
          payments shall continue,

          (a)  in full without a guaranteed period or with a guaranteed period
               from the commencement date of the Member's pension of 60, 120 or
               180 monthly payments, or

          (b)  reduced to two-thirds with a guaranteed period from the
               commencement date of the Member's pension of 120 or 180 monthly
               payments

          during the lifetime of the Member's Spouse or Same-Sex Partner if such
          Spouse or Same-Sex Partner is then living. The level at which payments
          continue shall be in accordance with the Member's election stated at
          the time of electing this option.

          If the Member, his Spouse or Same-Sex Partner dies before pension
          payments commence, the election of this option will be automatically
          cancelled.
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                                                                             12

SECTION 6 - BENEFITS ON TERMINATION OF EMPLOYMENT

6.01  A Member who terminates employment prior to Normal Retirement Date shall
      receive, in accordance with the Member's election, either (i) a lump sum
      return of the Commuted Value of the pension accrued to the date of
      termination, or (ii) a deferred pension payable from Normal Retirement
      Date in the normal form described in Section 4.07. The amount of the
      deferred pension shall be equal to the amount of pension accrued under
      the Plan in accordance with Section 4.02 up to the date of termination.

6.02  Notwithstanding anything to the contrary stated in Section 6.01, if a
      Member terminates employment prior to Normal Retirement Date and at the
      date of termination of employment the Member has been a Member of the
      Plan for a Continuous period of at least 2 years, such Member will not be
      entitled to a lump sum return but instead shall receive the deferred
      pension described in Section 6.01. This deferred pension is not capable
      of surrender or commutation during the lifetime of the Member.

6.03  A Member in service who is within 10 years of attaining Normal Retirement
      Date and would be entitled to a deferred pension on termination of
      employment pursuant to Section 6.02 is entitled upon termination of
      employment or on wind-up of the Plan in whole or in part to receive an
      early retirement pension in accordance with Section 4.04. Similarly, a
      Member who has terminated employment may elect to receive an early
      retirement pension in accordance with Section 4.04, if he is entitled to a
      deferred pension pursuant to Section 6.02 and is within 10 years of
      attaining Normal Retirement Date.

      An election under the above provisions shall be made in writing, signed by
      the Member and delivered to the administrator of the Plan.

6.04  A member, who terminates employment and is entitled to a lump sum return
      described in Section 6.01, may have his lump sum return, in whole or in
      part, transferred in accordance with Applicable Legislation, to a
      registered retirement savings plan or the registered pension plan of his
      new employer where that plan so permits.

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                                                                              13

SECTION 7 - BENEFITS OF DEATH

7.01      BENEFICIARIES

          A Member may designate a beneficiary to receive after his death any
          benefits due under the Plan which are not payable to the Member's
          Spouse or Same-Sex Partner. A Member may alter or revoke such
          designation, within the limits set by Applicable Legislation, by
          notification in writing to the Employer, or by a will. Any payments
          due to the Member's beneficiary under the Plan will be made in a lump
          sum. If a beneficiary has not been designated or if the designated
          beneficiary predeceases the Member, any payments due under the Plan
          will be made to the Member's estate in a lump sum.

7.02      DEATH IN SERVICE PRIOR TO COMMENCEMENT OF PENSION

          If a Member dies while in service of the Employer prior to
          commencement of the deferred pension to which he would have been
          entitled under Section 6, had his employment terminated immediately
          before his death, the surviving Spouse or Same-Sex Partner, if any,
          may elect to receive:

          (a)  a lump sum payment equal to the Commuted Value of the said
               deferred pension, or

          (b)  An immediate pension or a deferred pension payable in equal
               monthly instalments (the deferred pension to commence prior to
               the 69th birthday of the Spouse or Same-Sex Partner, or if later,
               within 1 year after the Member's death), the present value of
               which does not exceed the present value of the said deferred
               pension. Further, the said pension shall be payable throughout
               the lifetime of the Spouse or Same-Sex Partner without a
               guaranteed period or with a guaranteed period not in excess of
               180 monthly payments.

          If the Spouse or Same-Sex Partner does not make the said election
          within the time prescribed by Applicable Legislation, the Spouse or
          Same-Sex Partner shall be deemed to have elected an immediate pension.

          Notwithstanding anything to the contrary, the Spouse or Same-Sex
          Partner may waive his entitlement of the above benefit in the manner
          and form prescribed by Applicable Legislation. In that event the
          Member shall be deemed as not having a Spouse or Same-Sex Partner on
          the date of his death.
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                                                                              14

          If the Member does not have a Spouse or Same-Sex Partner on the date
          of his death, or is living separate or apart from his Spouse or
          Same-Sex Partner on that date, the Member's beneficiary or his estate,
          as the case may be, will receive a lump sum payment equal to the
          Commuted Value of the deferred pension mentioned in (a) above.

7.03      DEATH AFTER PENSION PAYMENTS HAVE COMMENCED

          If a Member dies after pension payments have commenced, any payments
          due according to the normal or optional forms of pension applicable to
          the Member will be made as set out in Section 4.07 or Section 5.

7.04      DEATH AFTER TERMINATION OF EMPLOYMENT

          If a Member, who is entitled to a deferred pension on termination of
          employment in accordance with Section 6, dies before Normal Retirement
          Date, his death benefits will be paid in accordance with Section 7.02
          as if he died in service prior to commencement of pension.
<PAGE>
                                                                              15
SECTION 8 - PORTABILITY

8.01 (a)  Subject to Section 8.02, a Member who terminates employment before
          becoming eligible to retire and who is entitled to a deferred pension
          in accordance with provisions of Section 6, may require the
          administrator of the Plan to pay the Commuted Value of the deferred
          pension:

          (i)       to the pension fund to provide benefits related to another
                    registered pension plan in respect of the Member, if the
                    administrator of the other pension plan agrees to accept the
                    payment; or

          (ii)      into a prescribed retirement savings arrangement, or

          (iii)     for the purchase for the Member of a deferred life annuity
                    which will not commence before the earliest date on which
                    the Member would have been entitled to receive payment of
                    pension benefits under the Plan.

     (b)  The following are prescribed retirement savings arrangements under
          Applicable Legislation for the purposes of (ii) above:

          (i)       a registered retirement savings plan (under the Income Tax
                    Act) or any locked-in retirement account (under applicable
                    provincial legislation); as the case may be, or

          (ii)      a life income fund or locked-in retirement income fund
                    (under applicable provincial legislation) that meets the
                    requirements for a registered retirement income fund (under
                    the Income Tax Act).

     (c)   Notwithstanding anything to the contrary in (a) above, a life income
           fund and a locked-in retirement income fund both referred to in b(ii)
           above will only be available to a Member who terminates employment on
           or after the attainment of age 54.

8.02 Amounts transferred in accordance with Section 8.01 shall not exceed the
     maximum amount prescribed under the Income Tax Act. Any excess of the
     Commuted Value over the amount transferred shall be paid to the Member in a
     lump sum.

<PAGE>
                                                                              16

SECTION 9 - LEAVES OF ABSENCE

9.01      TEMPORARY ABSENCES

          Subject to provisions set out in Section 9.03, if, with the consent
          of the Employer, a Member is temporarily absent from active duty and
          is receiving Earnings, pension under the Plan will continue to accrue
          during such absence.

9.02      If, with the consent of the Employer, a Member is temporarily absent
          from active duty and is not receiving Earnings, the previously
          credited pension shall not be affected but pension under the Plan
          shall not continue to accrue during such absence.

9.03      In respect of a Member who is a Connected Employee anytime after
          1990, pension under the Plan shall not continue to accrue during a
          period of Temporary Absence.

9.04      PREGNANCY AND PARENTAL LEAVE

          In accordance with the provisions of the Ontario Employment Standards
          Amendment Act, 1990, when a Member who is a Non-Connected Employee is
          granted pregnancy or parental leave, without pay, the Member
          continues to participate in the Plan and accrue benefits thereunder
          during such leave, unless the Member gives the Employer a written
          notice that he elects not to participate in the Plan, in which event,
          no benefits shall accrue during such period of leave.

9.05      Unless the Member has given the Employer the written notice referred
          to in the foregoing Section 9.04, the Employer shall during such
          leave continue to make the Employer Contributions in accordance with
          Section 3.02, subject to the condition that the aggregate of such
          periods of leave, attributable to a Member's parenting leave, during
          which pension accrues, shall not exceed 3 years.

9.06      WORKER'S COMPENSATION

          Where a Member who is a Non-Connected Employee is absent from work
          due to a work-related injury in accordance with the Workers'
          Compensation Amendment Act, 1989, he continues to participate in the
          Plan and accrue benefits for one year after the date the injury
          occurred. For this purpose, the Member shall be deemed, for one year
          after the date the injury occurred, to continue to be employed by the
          Employer on the date of the injury.
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                                                                              17

9.07  The Employer shall made Employer Contributions, in accordance with Section
      3.02, throughout the first year after the injury to the Member in order to
      provide benefits under the Plan in respect of the Member when he is absent
      from work because of injury.

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                                                                              18

SECTION 10 - PENSION FUND

10.01     The Employer shall establish a Pension Fund to be held under an
          agreement or agreements with a trust company or companies, under a
          contract or contracts with an insurance company or companies to be
          selected by the Employer, or a combination thereof, into which all
          contributions for the purposes of the Plan shall be deposited. The
          Pension Fund shall not form any part of the revenue or assets of the
          Employer.

10.02     Investments and re-investments of the Pension Fund shall be restricted
          to securities and loans of a class permitted by Applicable
          Legislation.

10.03     If at any time a surplus arises from the operation of the Plan which
          is not required to meet the actuarial liability existing thereunder,
          as determined by the Actuary, such surplus, subject to any Applicable
          Legislation or any moratorium on surplus withdrawal in effect at the
          time, may be returned to the Employer or may be applied against the
          Employer's obligations towards the costs of benefits arising under the
          Plan in regard to current and subsequent years, or, may be used to
          provide additional benefits on behalf of Members of the Plan.

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                                                                              19

SECTION 11 - CHANGE OR TERMINATION OF THE PLAN

11.01     The Employer intends to maintain the Plan in force but reserves the
          right to amend or discontinue the Plan.

11.02     If the Plan is amended, the benefits provided in respect of
          remuneration and service prior to the date of amendment shall not be
          adversely affected. Replacement of the Plan by another shall be
          considered as an amendment to the Plan.

11.03     If the Plan is discontinued, the assets of the Plan will be allocated
          to Members of the Plan to provide pensions and other benefits
          according to their entitlements under the terms of the Plan.

11.04     If there are any assets remaining after the liabilities for all
          benefits accrued under the Plan have been met, they shall be returned
          to the person or persons described in Supplement A, subject to any
          Applicable Legislation or any moratorium on surplus withdrawal in
          effect at the time.

11.05     It is specifically provided that, if a surplus arising out of
          termination of the Plan is applied to increase benefits to Members of
          the Plan the total resulting benefits accruing to a Member shall not
          exceed the limits as described in Section 4.10.

11.06     In order to avoid the revocation of the registration of the Plan,
          nothing contained herein shall prevent

          (a)  the Employer from amending the Plan at any time to reduce the
               benefits provided for a Member with respect to employment, and

          (b)  to return to the Employer the contributions made under the Plan
               by the Employer on behalf of a Member.
<PAGE>
                                                                              20

SECTION 12 - GENERAL

12.01     The Employer shall be the administrator of the Plan and shall be
          responsible for the overall operation and administration of the Plan.
          The Employer shall decide all questions relating to Earnings,
          Pensionable Service, membership, eligibility, retirement, and the
          calculation of benefits under the Plan. The Employer's decision shall
          be final and binding upon all persons affected thereby and shall be
          made in such a way as not to discriminate against any Employee or
          Member.

12.02     Evidence of age must be produced, by a Member, his Spouse or his
          Same-Sex Partner who will be entitled to a pension, if requested by
          the Employer.

12.03     No benefit provided under the Plan is capable of being assigned,
          charged, anticipated, given as security or surrendered.

          For the purposes of this Section, an assignment does not include:

          (a)  an assignment pursuant to a decree, order or judgment of a
               competent tribunal or a written agreement in settlement of rights
               arising as consequence of a marriage breakdown or other conjugal
               relationship between a Member, his Spouse, former Spouse,
               Same-Sex Partner or former Same-Sex Partner, or

          (b)  an assignment by the legal representative of a deceased Member
               on the distribution of the Member's estate.

          Further, a surrender does not include a reduction in benefits to
          avoid the revocation of the registration of the Plan as described in
          Section 11.06.

12.04     None of the benefits provided under the terms of the Plan are subject
          to the claim of or to execution, attachment, garnishment or other
          legal or equitable process by any creditor of a Member or of any
          other recipient of benefits except as specifically required or
          permitted under Applicable Legislation.

12.05     Where amounts such as Member's Pension Adjustments and/or Past
          Service Pension Adjustments are determined under the Income Tax Act
          Regulations with respect to the Plan, such amounts shall not be
          inappropriate having regard to the said Regulations and for purposes
          for which the amounts are determined.

          In addition, where a Member's Pension Adjustment exceeds the maximum
          limits set out under the Income Tax Act, the Plan shall become
          revocable unless the provisions of Section 11.06 are complied with.
<PAGE>
                                                                              21

12.06     Subject to Applicable Legislation, the sex of a Member or other
          beneficiary under the Plan shall not be taken into account in,

          (a)       determining the pension benefits or the Commuted
                    Value of pension benefits that the Member or other
                    beneficiary is or may become entitled to,

          (b)       the provision of eligibility of membership,

          (c)       the provision of ancillary benefits under the Plan.

12.07     Upon breakdown of marriage or conjugal relationship, the pension
          benefits accrued during the course of marriage or conjugal
          relationship shall be divided between the parties in accordance with
          the Applicable Legislation affecting matrimonial property.

12.08     Each Member shall receive annually a written statement containing
          information in respect of the Plan, the Member's pension benefits and
          any ancillary benefits, as prescribed by Applicable Legislation.

12.09     On retirement, termination of employment or death of a Member, such
          Member, his Spouse, Same-Sex Partner or beneficiary, as the case
          may be, shall receive a written statement showing the benefits to
          which he is entitled, as prescribed by Applicable Legislation.
<PAGE>
                                  SUPPLEMENT A

A1   "EFFECTIVE DATE" means January 1, 2002.

A2   "EMPLOYEE" means an executive employee of the Employer who has been
     classified as such by the Employer.

A3   "EMPLOYER" means Communication & Power Industries Canada Inc.

A4   "NORMAL RETIREMENT PENSION": The amount of annual pension accrued at any
     date and payable from Normal Retirement Date shall be as follows:

     (a)  2% of the Member's Highest Average Indexed Earnings multiplied by the
          period of Pensionable Service prior to January 1, 1991;

          plus

     (b)  the aggregate of 2% of the Member's Indexed Earnings for each year,
          or part thereof, that is Pensionable Service on or after
          January 1, 1991.

A5   "PENSIONABLE SERVICE" means (subject to the provisions of Section 9) the
     number of years and completed months (with completed months counted as a
     fraction of a year) of Continuous service in Canada with the Employer from
     the incorporation date of the company and all pensionable service
     recognized under The Retirement Plan of Communications & Power Industries
     Canada Inc. (registration number 1020429).

A6   "PLAN" means the Pension Plan for Executive Employees of Communication &
     Power Industries Canada Inc. (As Applicable to Joe Caldarelli) as set out
     in this document and includes any future amendment, additions thereto or
     substitutions therefore.

A7  "SURPLUS WITHDRAWAL": The surplus on termination of the Plan referred to in
     Section 11.04 of the Plan shall be returned to the employee.

STANDARD LIFE CLIENT NUMBER RS102249-S0521<PAGE>

                                                               December 30, 2003

Cohen & Steers Capital Advisors, LLC
757 Third Avenue
New York, New York  10017

               Re: Placement of Securities of Kramont Realty Trust

Dear Sirs:

            This letter (the "Agreement") confirms our agreement to retain Cohen
& Steers Capital Advisors, LLC (the "Placement Agent") as our exclusive agent
for a period commencing on the date of this letter and terminating on January
15, 2004, unless extended by the parties, to introduce Kramont Realty Trust, a
Maryland real estate investment trust (the "Company"), to certain investors as
prospective purchasers (the "Offer") of up to 2,400,000 shares of beneficial
interest of the Company's 8.25% Series E Cumulative Redeemable Preferred Shares,
par value $0.01 per share (the "Securities") (assuming the maximum number of
Securities is issued and sold). The engagement described herein (i) may be
terminated by the Company at any time prior to the Closing (as defined below)
and (ii) shall be in accordance with applicable laws and pursuant to the
following procedures and terms and conditions:

            1. The Company will:

            (a) Cause the Company's independent public accountants to address to
      the Company and the Placement Agent and deliver to the Company, the
      Placement Agent and the Purchasers (as such term is defined in the
      Purchase Agreement dated the date hereof between the Company and the
      purchasers party thereto (the "Purchase Agreement")) (i) a letter or
      letters (which letters are frequently referred to as "comfort letters")
      dated the date hereof, and (ii) if so requested by the Placement Agent, a
      "bring-down" letter delivered the date on which the sale of Securities is
      consummated pursuant to the Purchase Agreement (as defined below) (such
      date, the "Closing Date" and the time of such consummation on any such
      Closing Date, a "Closing"), which, with respect to the letter referred to
      in clause (i) above, will be substantially in the form attached hereto as
      Annex I, and with respect to the letter or letters referred to in clause
      (ii) above, will be in form and substance reasonably satisfactory to the
      Placement Agent.

            (b) On the Closing Date, cause outside counsel to the Company to
      deliver opinions to the Placement Agent and the Purchasers substantially
      in the form of Annex II and Annex III hereto, and cause the general
      counsel of the Company to deliver opinions to the Placement Agent and the
      Purchasers substantially in the form of Annex IV hereto.

            (c) As soon as practicable after the Closing, subject to the
      Purchasers' (as defined in the Purchase Agreement) ownership satisfying
      the distribution requirements for listing, apply for listing the
      Securities for trading on the New York Stock Exchange, Inc. ("NYSE") and
      will use its reasonable best efforts to obtain approval from the NYSE with
      respect to such listing as soon as reasonably practicable within 30 days
      after the Closing
<PAGE>
      Date and, if such approval is not obtained within 30 days, to continue to
      use its reasonable best efforts to obtain such approval as soon as
      practicable thereafter.

            (d) Prior to the Closing, the Company shall not sell or approve the
      solicitation of offers for the purchase of additional Securities in excess
      of the amount which shall be authorized by the Company or in excess of the
      aggregate offering price of the Securities registered pursuant to the
      Registration Statement (as defined below).

            (e) Use the proceeds of the offering contemplated hereby as set
      forth under the caption "Use of Proceeds" in the Prospectus Supplement (as
      defined below).

            2. The Company authorizes the Placement Agent to use the Prospectus
(as defined below) in connection with the Offer for such period of time as any
such materials are required by law to be delivered in connection therewith and
the Placement Agent agrees to do so.

            3. (a) The Placement Agent will use reasonable efforts on behalf of
the Company in connection with the Placement Agent's services hereunder. No
offers or sales of Securities shall be made to any person without the prior
approval of such person by the Company, such approval to be at the reasonable
discretion of the Company. The Placement Agent's aggregate fee for its services
hereunder will be an amount equal to 2.0% of the gross proceeds of the Offering
up to $1,200,000. Such fee shall be payable by the Company at and subject to the
consummation of the Closing. The Company, upon consultation with the Placement
Agent, may establish in the Company's discretion a minimum aggregate amount of
Securities to be sold in the offering contemplated hereby, which minimum
aggregate amount shall be reflected in the Prospectus. The Placement Agent will
not enter into any agreement or arrangement with any broker, dealer or other
person in connection with the placement of Securities (collectively,
"participating person(s)") which will obligate the Company to pay additional
fees or expenses to or on behalf of a participating person without the prior
written consent of the Company, it being understood that Jeffries & Company will
be acting as settlement agent ("Settlement Agent") in connection with the Offer
and the Company will pay the fees and expenses of the Settlement Agent in
connection therewith.

            (b) Subject to the provisions of the last sentence of this Section
3(b), the Company agrees that it will pay its own costs and expenses incident to
the performance of the obligations hereunder whether or not any Securities are
offered or sold pursuant to the Offer, including, without limitation, (i) the
filing fees and expenses, if any, incurred with respect to any filing with the
NYSE, (ii) all costs and expenses incident to the preparation, issuance,
execution and delivery of the Securities, (iii) all costs and expenses
(including filing fees) incident to the preparation, printing and filing under
the Securities Act of 1933, as amended (the "Act"), of the Registration
Statement and the Prospectus, including, without limitation, in each case, all
exhibits, amendments and supplements thereto, (iv) all costs and expenses
incurred in connection with the required registration or qualification of the
Securities issuable under the laws of such jurisdictions as the Placement Agent
may reasonably designate, if any, (v) all costs and expenses incurred by the
Company in connection with the printing (including word processing and
duplication costs) and delivery of the Prospectus and Registration Statement
(including, without limitation, any preliminary and supplemental blue sky
memoranda) including, without limitation, mail-
<PAGE>
ing and shipping, (vi) all fees and expenses incurred in marketing the Offer and
(vii) the fees and disbursements of each counsel to the Company and BDO Seidman,
LLP, auditors to the Company. The Placement Agent shall pay its own expenses in
connection with the Offer, including, without limitation, the legal fees,
expenses and disbursements of the Placement Agent's counsel in connection with
the Offer. The Placement Agent shall, at the Closing or as soon as reasonably
practicable thereafter, pay to the persons or entities set forth on Schedule A
attached hereto the amounts set forth opposite their respective names on such
schedule as directed by the Company to cover certain expenses incurred in
connection with the Offering.

            4. The Company and the Placement Agent hereby agree as follows:

            (a) The Company will indemnify and hold harmless the Placement Agent
      and each of its respective partners, directors, officers, associates,
      affiliates, subsidiaries, employees, consultants, attorneys and agents,
      and each person, if any, controlling the Placement Agent or any of its
      affiliates within the meaning of either Section 15 of the Act or Section
      20 of the Securities Exchange Act of 1934, as amended (the "Exchange
      Act"), from and against any and all losses, claims, damages, liabilities
      or costs (and any reasonable legal or other expenses incurred by such
      Placement Agent in investigating or defending the same or in giving
      testimony or furnishing documents in response to a request of any
      government agency or to a subpoena) in any way relating to, arising out of
      or caused by any untrue statement or alleged untrue statement of a
      material fact contained in the Registration Statement or in the Prospectus
      or in any way relating to, arising out of or caused by any omission or
      alleged omission to state therein a material fact required to be stated
      therein or necessary to make the statements therein, in the light of the
      circumstances under which they were made, not misleading. Such indemnity
      agreement shall not, however, apply to any such loss, claim, damage,
      liability, cost or expense (i) if such statement or omission was made in
      reliance upon or in conformity with information furnished in writing to
      the Company by the Placement Agent or its affiliates or any of the
      Purchasers, Investment Advisors or Broker-Dealers (as defined in the
      Purchase Agreement) or their respective affiliates expressly for use in
      the Prospectus Supplement, or (ii) which is held in a final judgment of a
      court of competent jurisdiction (not subject to further appeal) to have
      arisen out of the gross negligence or willful misconduct of the Placement
      Agent or any indemnitee described in this paragraph 4(a).

            (b) The Placement Agent will indemnify and hold harmless the Company
      and each of its directors, officers, associates, affiliates, subsidiaries,
      employees, consultants, attorneys, agents, and each person controlling the
      Company or any of its affiliates within the meaning of either Section 15
      of the Act or Section 20 of the Exchange Act from and against any and all
      losses, claims, damages, liabilities, costs or expenses (and any
      reasonable legal or other expenses incurred by such indemnitee in
      investigating or defending the same or in giving testimony or furnishing
      documents in response to a request of any government agency or to a
      subpoena) (i) which are held in a final judgment of a court of competent
      jurisdiction (not subject to further appeal) to have arisen out of the
      gross negligence or willful misconduct of such Placement Agent or any of
      its respective partners, directors, officers, associates, affiliates,
      subsidiaries, employees, consultants, attorneys and agents, and each
      person, if any, controlling the Placement Agent or any of its affili-
<PAGE>
      ates within the meaning of Section 15 of the Act or Section 20 of the
      Exchange Act or (ii) relating to, arising out of or caused by any untrue
      statement or alleged untrue statement of a material fact contained in the
      Prospectus Supplement or in any way relating to, arising out of or caused
      by any omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein,
      in the light of the circumstances under which they were made, not
      misleading, if such statement or omission was made in reliance upon or in
      conformity with information furnished in writing to the Company by the
      Placement Agent or its affiliates or any if the Purchasers, Investment
      Advisors or Broker-Dealers or their respective affiliates expressly for
      use in the Prospectus Supplement, or (iii) which result from violations by
      the Placement Agent of law or of requirements, rules or regulations of
      federal or state securities regulators, self-regulatory associations or
      organizations in the securities industry, stock exchanges or organizations
      with similar functions or responsibilities with respect to securities
      brokers or dealers, as determined by a court of competent jurisdiction or
      applicable federal or state securities regulators, self-regulatory
      associations or organizations in the securities industry or stock
      exchanges or organizations, as applicable.

            (c) If any action, proceeding or investigation is commenced as to
      which any indemnified party hereunder proposes to demand indemnification
      under this letter agreement, such indemnified party will notify the
      indemnifying party with reasonable promptness. The indemnifying party
      shall have the right to retain counsel of its own choice (which counsel
      shall be reasonably satisfactory to the indemnified party) to represent it
      and such counsel shall, to the extent consistent with its professional
      responsibilities, cooperate with the indemnified party and any counsel
      designated by the indemnified party. The indemnifying party will not be
      liable under this letter agreement for any settlement of any claim against
      the indemnified party made without the indemnifying party's written
      consent.

            In order to provide for just and equitable contribution, if a claim
for indemnification pursuant to this paragraph 4 is made but it is found in a
final judgment by a court of competent jurisdiction (not subject to further
appeal) that such indemnification may not be enforced in such case, even though
the express provisions hereof provided for indemnification in such case, then
the Company, on the one hand, and the Placement Agent, on the other hand, shall
contribute to the losses, claims, damages, liabilities or costs to which the
indemnified persons may be subject in accordance with the relative benefits
received from the offering and sale of the Securities by the Company, on the one
hand, and the Placement Agent, on the other hand (it being understood that, with
respect to the Placement Agent, such benefits received are limited to fees
actually paid by the Company and received by the Placement Agent pursuant to
this Agreement), and also the relative fault of the Company, on the one hand,
and the Placement Agent, on the other hand, in connection with the statements,
acts or omissions which resulted in such losses, claims, damages, liabilities or
costs, and the relevant equitable considerations shall also be considered. No
person found liable for a fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who
is not also found liable for such fraudulent misrepresentation. Notwithstanding
the foregoing, the Placement Agent shall not be obligated to contribute any
amount hereunder that exceeds the fees received by the Placement Agent in
respect to the offering and sale of the Securities.
<PAGE>
            5. The Company represents and warrants to the Placement Agent as of
the date hereof and as of the Closing Date as follows:

            (a) The Company meets the requirements for use of Form S-3 under the
      Act. The Company's Registration Statement (as defined below) was declared
      effective by the SEC (as defined below) and the Company has filed such
      post-effective amendments thereto as may be required prior to the
      execution of this Agreement and each such post-effective amendment became
      effective. The SEC has not issued, and to the Company's knowledge, the SEC
      does not intend nor has it threatened to issue, a stop order with respect
      to the Registration Statement, nor has it otherwise suspended or withdrawn
      the effectiveness of the Registration Statement, either temporarily or
      permanently, nor, to the Company's knowledge, does it intend or has it
      threatened to do so. On the effective date, (i) the Registration Statement
      complied in all material respects with the requirements of the Act and the
      rules and regulations promulgated under the Act (the "Regulations"); at
      the effective date the Basic Prospectus (as defined below) complied, and
      at the Closing the Prospectus will comply, in all material respects with
      the requirements of the Act and the Regulations; and (ii) the Registration
      Statement at the effective date and as amended or supplemented on the date
      hereof and on the Closing Date did not, does not and will not contain an
      untrue statement of a material fact or omit to state a material fact
      required to be stated therein or necessary to make the statements therein
      not misleading; and the Prospectus as of any such time, did not, does not
      and will not include an untrue statement of a material fact or omit to
      state a material fact necessary in order to make the statements therein,
      in the light of the circumstances under which they were made, not
      misleading; provided, however, that the representations and warranties in
      this subsection shall not apply to statements in or omissions from the
      Registration Statement or the Prospectus made in reliance upon and in
      conformity with information furnished to the Company in writing by (i) the
      Placement Agent or its affiliates or (ii) by or on behalf of any of the
      Purchasers, Investment Advisors or Broker-Dealers or any of their
      respective affiliates, in each case, expressly for use therein. As used in
      this Agreement, the term "Registration Statement" means the "shelf"
      registration statement on Form S-3 (File No. 333-85424) as declared
      effective by the Securities and Exchange Commission (the "SEC"), including
      exhibits, financial statements, schedules and documents incorporated by
      reference therein. The term "Basic Prospectus" means the prospectus
      included in the Registration Statement. The term "Prospectus Supplement"
      means the prospectus supplement specifically relating to the Securities as
      filed with the SEC pursuant to Rule 424 under the Act in connection with
      the sale of the Securities. The term "Prospectus" means the Basic
      Prospectus and the Prospectus Supplement. Any reference in this Agreement
      to the Registration Statement or the Prospectus shall be deemed to refer
      to and include the documents incorporated by reference therein as of the
      date hereof or the date of the Prospectus, as the case may be, and any
      reference herein to any amendment or supplement to the Registration
      Statement or the Prospectus shall be deemed to refer to and include any
      documents filed after such date and through the date of such amendment or
      supplement under the Exchange Act and so incorporated by reference.

            (b) Since the date as of which information is given in the
      Registration Statement and the Prospectus, except as otherwise stated
      therein, (A) there has been no mate-
<PAGE>
      rial adverse change or any development involving a prospective material
      adverse change in or affecting the condition, financial or otherwise, or
      in the earnings, business affairs or business prospects of the Company and
      the subsidiaries of the Company, if any (the "Subsidiaries") considered as
      one enterprise, whether or not arising in the ordinary course of business,
      (B) there have been no transactions entered into by the Company or any of
      its Subsidiaries, other than those in the ordinary course of business,
      which are material with respect to the Company and its Subsidiaries
      considered as one enterprise, and (C) other than regular quarterly
      dividends, there has been no dividend or distribution of any kind
      declared, paid or made by the Company on any class of its shares of
      beneficial interest except that following the Closing it is expected that
      the Company will call for redemption and declare a "Redemption Date" for
      its outstanding Series D Preferred Shares and in connection therewith will
      declare and set aside for payment dividends equal to the accrued and
      unpaid dividends through the Redemption Date on the Company's Series D
      Preferred Shares and the Company's Series B-1 Preferred Shares.

            (c) The Company has been duly organized as a real estate investment
      trust and is validly existing in good standing under the laws of the State
      of Maryland. Each of the Subsidiaries of the Company has been duly
      organized and is validly existing in good standing under the laws of its
      jurisdiction of organization. Each of the Company and its Subsidiaries has
      the required power and authority to own and lease its properties and to
      conduct its business as described in the Prospectus; and each of the
      Company and its Subsidiaries is duly qualified to transact business in
      each jurisdiction in which such qualification is required, whether by
      reason of the ownership or leasing of property or the conduct of business,
      except where the failure to so qualify would not have a material adverse
      effect on the condition, financial or otherwise, or the earnings, business
      affairs or business prospects of the Company and its Subsidiaries
      considered as one enterprise.

            (d) As of the date hereof, the authorized capital stock of the
      Company consisted of 94,283,845 common shares and 5,716,155 preferred
      shares of beneficial interest, par value $.01 per share, of which
      23,994,925 common shares of beneficial interest, 1,183,240 9.75% Series
      B-1 Cumulative Convertible Preferred Shares and 1,653,200 Series D
      Cumulative Redeemable Preferred Shares ("Series D Preferred Shares") are
      issued and outstanding as of such date (without giving effect to any
      preferred shares of beneficial interest issued or to be issued as
      contemplated by this Agreement or the application of the proceeds of the
      offering contemplated hereby) and 2,400,000 8.25% Series E Cumulative
      Redeemable Preferred Shares are authorized and unissued. The issued and
      outstanding shares of beneficial interest of the Company have been duly
      authorized and validly issued and are fully paid and non-assessable; the
      Securities have been duly authorized, and when issued in accordance with
      the terms of the Articles Supplementary (as defined below) and delivered
      as contemplated hereby, will be validly issued, fully paid and
      non-assessable; the Securities and the shares of beneficial interest of
      the Company conform to all statements relating thereto contained in the
      Prospectus; and the issuance of the Securities is not subject to
      preemptive or other similar rights.

            (e) Neither the Company nor any of its Subsidiaries is in violation
      of its organizational documents or in default in the performance or
      observance of any material
<PAGE>
      obligation, agreement, covenant or condition contained in any contract,
      indenture, mortgage, loan agreement, note, lease or other instrument or
      agreement to which the Company or any of its Subsidiaries is a party or by
      which it or any of them may be bound, or to which any of the property or
      assets of the Company or any of its Subsidiaries is subject where such
      violation or default would have a material adverse effect on the
      condition, financial or otherwise, or the earnings, business affairs or
      business prospects of the Company and its Subsidiaries considered as one
      enterprise; and the execution, delivery and performance of this Agreement,
      the execution and filing of the Articles Supplementary of the Company
      relating to the Securities (the "Articles Supplementary"), and the
      issuance and delivery of the Securities and the consummation of the
      transactions contemplated herein have been duly authorized by all
      necessary action and will not conflict with or constitute a material
      breach of, or default under, or result in the creation or imposition of
      any lien, charge or encumbrance upon any property or assets of the Company
      or any of its Subsidiaries pursuant to, any contract, indenture, mortgage,
      loan agreement, note, lease or other instrument or agreement to which the
      Company or any of its Subsidiaries is a party or by which it or any of
      them may be bound, or to which any of the property or assets of the
      Company or any of its Subsidiaries is subject, nor will any such action
      result in any violation of the provisions of the Amended and Restated
      Declaration of Trust, as supplemented by the Articles Supplementary,
      by-laws or other organizational documents of the Company or any of its
      Subsidiaries or any applicable law, administrative regulation or
      administrative or court decree.

            (f) The Company is organized in conformity with the requirements for
      qualification and, as of the date hereof and as of the Closing, operates
      in a manner that qualifies it as a "real estate investment trust" under
      the Internal Revenue Code of 1986, as amended, and the rules and
      regulations thereunder and will be so qualified after giving effect to the
      sale of the Securities.

            (g) The Company is not required to be registered under the
      Investment Company Act of 1940, as amended.

            (h) There is no action, suit or proceeding before or by any court or
      governmental agency or body, domestic or foreign, now pending, or, to the
      knowledge of the Company, threatened or contemplated, against or affecting
      the Company or any of its Subsidiaries, which is required to be disclosed
      in the Prospectus (other than as disclosed therein), or which might result
      in any material adverse change in the condition, financial or otherwise,
      or in the earnings, business affairs or business prospects of the Company
      and its Subsidiaries considered as one enterprise, or which might
      materially and adversely affect their respective property or assets or
      which might materially and adversely affect the consummation of this
      Agreement; all pending legal or governmental proceedings to which the
      Company or any of its Subsidiaries is a party or of which any of their
      respective property or assets is the subject which are not described in
      the Prospectus, including ordinary routine litigation incidental to its
      business, are, considered in the aggregate, not material to the business
      of the Company and its Subsidiaries considered as one enterprise.
<PAGE>
            (i) No authorization, approval or consent of any court or United
      States federal or state governmental authority or agency is necessary in
      connection with the sale of the Securities as contemplated hereunder,
      except such as may be required under the Act or the Regulations or state
      securities laws or real estate syndication laws.

            (j) The Company and its Subsidiaries possess such material
      certificates, authorities or permits issued by the appropriate state,
      federal or foreign regulatory agencies or bodies necessary to conduct the
      business now conducted by them, and neither the Company nor any of its
      Subsidiaries has received any notice of proceedings relating to the
      revocation or modification of any such certificate, authority or permit
      which, singly or in the aggregate, if the subject of an unfavorable
      decision, ruling or finding, would materially and adversely affect the
      condition, financial or otherwise, or the earnings, business affairs or
      business prospects of the Company and its Subsidiaries considered as one
      enterprise, nor, to the knowledge of the Company, are any such proceedings
      threatened or contemplated.

            (k) The Company has full power and authority to enter into this
      Agreement, and this Agreement has been duly authorized, executed and
      delivered by the Company and constitutes a legal, valid and binding
      agreement of the Company, enforceable against the Company in accordance
      with its terms except as may be limited by (i) the effect of bankruptcy,
      insolvency, reorganization, moratorium or other similar laws relating to
      or affecting the rights or remedies of creditors or (ii) the effect of
      general principles of equity, whether enforcement is considered in a
      proceeding in equity or at law and the discretion of the court before
      which any proceeding therefor may be brought (collectively, the
      "Enforceability Exceptions").

            (l) The Articles Supplementary, and the filing of the Articles
      Supplementary with the State Department of Assessments and Taxation of
      Maryland on behalf of the Company, have each been duly authorized by the
      Company, the Articles Supplementary have been filed with the State
      Department of Assessments and Taxation of Maryland on behalf of the
      Company and constitute a valid and legally binding supplement to the
      Amended and Restated Declaration of Trust of the Company enforceable
      against the Company in accordance with its terms, except as enforceability
      may be limited by the Enforceability Exceptions.

            (m) As of the dates set forth therein or incorporated by reference,
      the Company had good and marketable title to all of the properties and
      assets reflected in the audited financial statements contained in the
      Prospectus, subject to no lien, mortgage, pledge or encumbrance of any
      kind except those reflected in such financial statements (or as otherwise
      described in the Prospectus) or which are not material or which constitute
      customary provisions of mortgage loans secured by the Company's properties
      creating obligations of the Company with respect to proceeds of the
      properties, environmental liabilities and other customary protections for
      the mortgagees.

            (n) The Company has good and marketable title to all of the
      properties and assets reflected in the audited financial statements
      contained in the Prospectus, subject to no
<PAGE>
      lien, mortgage, pledge or encumbrance of any kind except those reflected
      in such financial statements (or as otherwise described in the Prospectus)
      or which are not material or which constitute customary provisions of
      mortgage loans secured by the Company's properties creating obligations of
      the Company with respect to proceeds of the properties, environmental
      liabilities and other customary protections for the mortgagees.

            (o) Any certificate signed by any officer of the Company and
      delivered to the Placement Agent or to counsel for the Placement Agent
      shall be deemed a representation and warranty by the Company to the
      Placement Agent as to the matters covered thereby.

            (p) Neither the issuance, sale and delivery of the Securities nor
      the application of the proceeds thereof by the Company as described in the
      Prospectus will cause the Company to violate or be in violation of
      Regulation T, U or X of the Board of Governors of the Federal Reserve
      System or any other regulation of such Board of Governors.

            (q) The statements set forth in the Basic Prospectus under the
      caption "Description of Shares -- Preferred Shares" and the statements set
      forth in the Prospectus Supplement under the caption "Description of the
      Series E Preferred Shares," in each case, in so far as such statements
      purport to summarize provisions of laws or documents referred to therein,
      are correct in all material respects and fairly present the information
      required to be shown therein.

            6. The Placement Agent represents and warrants to the Company that
(i) it is registered as a broker-dealer under the Exchange Act and licensed or
otherwise qualified to do business as a broker-dealer in all states in which it
will offer any Securities pursuant to this Agreement, (ii) assuming compliance
by the Company with all relevant provisions of the Act in connection with the
Prospectus, the Placement Agent will conduct all offers and sales of the
Securities in compliance with the relevant provisions of the Act and the
Regulations and various state securities laws and regulations, (iii) the
Placement Agent will only act as agent in those jurisdictions in which it is
authorized to do so and (iv) the Placement Agent will not distribute to any
Purchaser, Investment Advisor or Broker-Dealer any written material relating to
the offering contemplated hereby other than the Registration Statement or the
Prospectus.

            7. This Agreement shall be governed by the laws of the State of New
York governing contracts made and to be performed in such State without giving
effect to principles of conflicts of law.

            8. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which together shall
be deemed to be the same Agreement. Executed counterparts may be delivered by
facsimile.
<PAGE>
            If the foregoing is in accord with your understanding of our
agreement, please sign in the space provided below and return a signed copy of
this letter to the Company.

                                           Sincerely,

                                           KRAMONT REALTY TRUST

                                           By:   /s/ Carl E. Kraus
                                                 -------------------------------
                                                 Name:  Carl E. Kraus
                                                 Title: Chief Financial Officer

Accepted by:

COHEN & STEERS CAPITAL ADVISORS, LLC

By:  /s/ Bradley G. Razook
     -------------------------------
     Name:  Bradley G. Razook
     Title: Managing Director

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