Document:

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                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, dated January 1, 2002 is made by and between Kimco
Realty Corporation (the "Company"), a Maryland corporation, and Michael V.
Pappagallo (the "Executive").

                                    RECITALS:

A.       It is the desire of the Company to assure itself of the management
         services of the Executive by engaging the Executive as the Chief
         Financial Officer of Kimco Realty Corporation.

B.       The Executive desires to commit himself to serve the Company on the
         terms herein provided.

         NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below the parties hereto agree as follows:

1.       Certain Definitions.

                  (a) "Base Salary" is defined in Section 5(a).

                  (b) "Benefits" is defined in Section 5(d).

                  (c) "Board" shall mean the Board of Directors of the Company.

                  (d) "Bonus" is defined in Section 5(b).

                  (e) "Calendar Quarter" shall mean each of the three-month
         periods ending March 31, June 30, September 30 and December 31 of each
         year.

                  (f) "Cause": For purposes of this Agreement, the Company shall
         have "Cause" to terminate the Executive's employment hereunder upon (i)
         a finding by the Board that he has harmed the Company through an act of
         dishonesty in the performance of his duties hereunder, (ii) his
         conviction of a felony, or (iii) his failure to perform his material
         duties under this Agreement (other than a failure due to disability)
         after written notice specifying the failure and a reasonable
         opportunity to cure (it being understood that if his failure to perform
         is not of a type requiring a single action to cure fully, that he may
         commence the cure promptly after such written notice and thereafter
         diligently prosecute such cure to completion).

                  (g) "Change of Control": shall mean (i) a sale of all or
         substantially all of the assets of the Company to a Person who is not
         an Affiliate of the Company or an entity in which the shareholders of
         the Company immediately prior to such transaction do not control more
         than 50% of the voting power immediately following the transaction,
         (ii) a sale by any Person resulting in more than 50% of the voting
         stock of the Company being held by a Person or Group that does not
         include the Company or (iii) a merger or consolidation of the Company
         into another Person which is not an Affiliate of the Company or an
         entity in which the shareholders of the Company immediately prior to
         such transaction do not control more than 50% of the voting power
         immediately following the transaction.

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                  (h) "Disability" shall mean the absence of the Executive from
         the Executive's duties to the Company on a full-time basis for a total
         of 16 weeks during any 12 month period as a result of incapacity due to
         mental or physical illness which is determined to be total and
         permanent by a physician selected by the Company and acceptable to the
         Executive or the Executive's legal representative (such agreement as to
         acceptability not to be withheld unreasonably).

                  (i) "Effective Date" shall mean January 1, 2002.

                  (j) "Employment Fraction" is defined in Section 5(b).

                  (k) "Discretionary Bonus" is defined in Section 5(b).

                  (l) "Option Agreement" is defined in Section 5(c).

                  (m) "Option Plan" is defined in Section 5(c).

                  (n) "Stock Options" is defined in Section 5(c).

                  (o) "Term of Employment" is defined in Section 2.

                  2. Employment. The Company shall employ the Executive, and the
         Executive shall enter the employ of the Company, in the positions set
         forth in Section 3 and upon the other terms and conditions herein
         provided. Unless sooner terminated as provided herein, this Agreement
         and the term of employment hereunder (the "Term of Employment") shall
         initially commence on the Effective Date and expire on the third
         anniversary of such date.

                  3. Position. During the Term of Employment, the Executive
         shall serve as Chief Financial Officer, reporting directly to the
         President of the Company.

                  4. Place of Performance. In connection with his employment
         during the Term of Employment, the Executive shall be based at the
         Company's principal executive offices currently located in New Hyde
         Park, New York.

                  5. Compensation and Related Matters.

                           (a) Base Salary. During the Term of Employment the
                  Executive shall receive a base salary ("Base Salary") at a
                  rate of $ 400,000 per annum (or such greater amount as shall
                  be determined by the Board), payable monthly or more
                  frequently in accordance with the Company's practice as
                  applied to other senior executives.

                           (b) Discretionary Bonus. As additional compensation
                  for services rendered, the Executive may receive a
                  discretionary bonus ("Bonus") in cash in an amount based on
                  the sole discretion of the Board of Directors.

                           (c) Equity Compensation. Executive shall retain all
                  of his rights pursuant to his currently outstanding agreement
                  (the "Option Agreement") under the Stock Option Plan for Key
                  Employees and Outside Directors of Kimco Realty Corporation
                  (the "Option Plan").

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                           (d) Benefits. During the Term of Employment, the
                  Executive shall be entitled to participate in or receive
                  benefits under the employee benefit plans and other
                  arrangements made available by the Company to its senior
                  employees generally (collectively "Benefits"), subject to and
                  on a basis consistent with the terms, conditions and overall
                  administration of such plans or arrangements, provided,
                  however, that the Executive shall be entitled to four weeks of
                  paid vacation per annum during the Term of Employment,
                  exclusive of Company or holidays and that the Executive shall
                  be entitled to take sick or personal days off in accordance
                  with the Company's practice as applied to other senior
                  executives.

                           (e) Business Expenses. The Company shall promptly
                  reimburse the Executive for all reasonable travel and other
                  business expenses incurred by the Executive in the performance
                  of his duties to the Company hereunder.

                           (f) No Waiver. The Executive shall also be entitled
                  to such other benefits or terms of employment as are provided
                  by law.

                  6. Termination. The Executive's employment hereunder may be
         terminated by the Company or the Executive, as applicable, without any
         breach of this Agreement only under the following circumstances:

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

                           (b) Disability. If the Company determines in good
                  faith that the Disability of the Executive has occurred during
                  the Term of Employment, the Company may give the Executive
                  written notice of its intention to terminate the Executive's
                  employment. In such event, the Executive's employment with the
                  Company shall terminate effective on the 30th day after
                  receipt of such notice by the Executive, provided that within
                  the 30 days after such receipt, the Executive shall not have
                  returned to full-time performance of his duties. The Executive
                  shall continue to receive his Base Salary and Benefits until
                  the date of termination.

                  This subsection 6(b) shall not limit the entitlement of the
                  Executive, his estate or beneficiaries to any disability or
                  other benefits then available to the Executive under any
                  disability insurance or other benefit plan or policy which is
                  maintained by the Company for the Executive's benefit.

                           (c) Cause. The Company may terminate the Executive's
                           employment hereunder for Cause.

                           (d) Without Cause. The Company may terminate the
                  Executive's employment hereunder without Cause upon
                  thirty days notice.

                           (e) Notice of Termination. Any termination of the
                  Executive's employment hereunder (other than by reason of the
                  Executive's death) shall be communicated by a notice of
                  termination to the other parties hereto. For purposes of this
                  Agreement, a "notice of termination" shall mean a written
                  notice which (i) indicates the specific termination provision
                  in the Agreement relied upon, (ii) sets forth in reasonable
                  detail any facts and circumstances claimed to provide a basis
                  for termination of the Executive's employment under the
                  provision indicated and (iii) specifies the effective date of
                  the termination.

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                  7. Benefits upon Termination of Employment.

                           (a) Termination upon Death or Disability: If the
                  Executive's employment shall terminate by reason of his death
                  (pursuant to Section 6(a)) or by reason of his Disability
                  (pursuant to Section 6(b)), the Company shall continue to pay
                  the Executive his Base Salary and Discretionary Bonus and to
                  make all necessary payments for and provide all Benefits to
                  the Executive under this Agreement pursuant to Section 5(d)
                  until the date of his termination, and the Executive's Stock
                  Options shall become fully vested as of such date of
                  termination.

                           (b) Termination without Cause: If the Executive's
                  employment shall terminate without Cause (pursuant to
                  Section 6(d)),

                                    (i) the Company shall continue to pay the
                           Executive his Base Salary to make all necessary
                           payments for and provide all Benefits to the
                           Executive under this Agreement pursuant to Section
                           5(d) until the then scheduled expiration of the Term
                           of Employment, unless such Termination shall occur
                           within the last six months of the scheduled Term, in
                           which case the Company shall continue to pay the
                           Executive his Base salary, make all necessary
                           payments and to provide all Benefits to the Executive
                           for a period of six months from the date of
                           Termination, and

                                    (ii) if the Stock Options have not become
                           100% vested and have not otherwise expired as of such
                           date of termination, the Stock Options shall become
                           100% vested as of the date of termination.

                           (c) Termination by Reason of Expiration of the Term
                  of Employment. Should the Executive's employment hereunder
                  terminate by reason of the expiration of the Term of
                  Employment,

                                    (i) the Company shall continue to pay the
                           Executive his Base Salary and Discretionary Bonus and
                           to make all necessary payments for and provide all
                           Benefits to the Executive under this Agreement
                           pursuant to Section 5(d) until the date of his
                           termination, and

                                    (ii) if the Stock Options have not become
                           100% vested and have not otherwise expired as of such
                           date of termination, the Stock Options shall continue
                           to be eligible to vest as scheduled pursuant to the
                           Option Agreement and shall become vested on such
                           scheduled vesting date(s) if the Executive shall have
                           made himself available to consult with the Company as
                           reasonably requested by the Company during the period
                           beginning on the date of termination and ending on
                           such scheduled vesting date(s).

                           (d) Other Terminations of Employment: Should the
                  Executive's employment hereunder terminate for any reason not
                  set forth in subsections (a) - (c) above, then any Stock
                  Options not then vested shall be forfeited and the Company
                  shall have no other obligation of any kind hereunder to the
                  Executive.

                  8. Change in Control. Following a Change in control (a) the
         Executive may terminate his employment within 60 days or (b) if the
         acquiring entity or Person decides to terminate the Executive without
         Cause, then upon Executive's execution of a general release in the
         Company's customary form, Executive shall be entitled, as his exclusive
         remedy hereunder to (x) full and immediate vesting of all otherwise
         unvested Stock Options and (y) a payment equal to the lesser of (i) the
         amount of Base Salary and bonus he would have been entitled to receive
         under this contract for the duration of the otherwise applicable term
         or (ii) the greatest payment which, in combination with all other
         payments to which he would be entitled, would not constitute an "excess
         parachute payment" as such term is defined in Section 280G(b)(1) of the
         Internal Revenue Code.

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                  9. Survival. The expiration or termination of the Term of
         Employment shall not impair the rights or obligations of any party
         hereto which shall have accrued hereunder prior to such expiration.

                  10. Mitigation of Damages. In the event of any termination of
         the Executive's employment by the Company, the Executive shall not be
         required to seek other employment to mitigate damages.

                  11. Disputes. Any dispute or controversy arising under, out
         of, in connection with or in relation to this Agreement shall, at the
         election and upon written demand of any party to this Agreement, be
         finally determined and settled by arbitration in New York, New York in
         accordance with the rules and procedures of the American Arbitration
         Association, and judgment upon the award may be entered in any court
         having jurisdiction thereof.

                  The prevailing party in any such proceeding shall be entitled
         to collect from the other party, all legal fees and expenses reasonably
         incurred in connection therewith.

                  12. Binding on Successors. This Agreement shall be binding
         upon and inure to the benefit of the Company, the Executive and their
         respective successors, assigns, personnel and legal representatives,
         executors, administrators, heirs, distributees, devisees, and legatees,
         as applicable.

                  13. Governing Law. This Agreement is being made and executed
         in and is intended to be performed in the State of New York, and shall
         be governed, construed, interpreted and enforced in accordance with the
         substantive laws of the State of New York.

                  14. 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.

                  15. Notices. Any notice, request, claim, demand, document and
         other communication hereunder to any party shall be effective upon
         receipt (or refusal of receipt) and shall be in writing and delivered
         personally or sent by telex, telecopy, or certified or registered mail,
         postage prepaid, as follows:

                  If to the Company, address to the Company's principal offices
                  to the attention of President, at:

                         3333 New Hyde Park Rd.
                         New Hyde Park, NY 11042

                  If to the Executive, to him at the address set forth below
                  under his signature;

         or at any other address as any party shall have specified by notice in
         writing to the other parties.

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

                  17. Entire Agreement. The terms of this Agreement are intended
         by the parties to be the final expression of their agreement with
         respect to the employment of the Executive by the Company and may not
         be contradicted by evidence of any prior or contemporaneous agreement.
         The parties further intend that this Agreement shall constitute the
         complete and exclusive statement of its terms and that no extrinsic
         evidence whatsoever may be introduced in any judicial, administrative,
         or other legal proceeding to vary the terms of this Agreement.

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                  18. Amendments; Waivers. This Agreement may not be modified,
         amended, or terminated except by an instrument in writing, signed by
         the Executive and a disinterested director of the Company. By an
         instrument in writing similarly executed, the Executive or the Company
         may waive compliance by the other party with any provision of this
         Agreement that such other party was or is obligated to comply with or
         perform, provided, however, that such waiver shall not operate as a
         waiver of, or estoppel with respect to, any other or subsequent
         failure. No failure to exercise and no delay in exercising any right,
         remedy, or power hereunder preclude any other or further exercise of
         any other right, remedy, or power provided herein or by law or in
         equity.

                  19. No Effect on Other Contractual Rights. Notwithstanding
         Section 6, the provisions of this Agreement, and any other payment
         provided for hereunder, shall not reduce any amounts otherwise payable
         to the Executive under any other agreement between the Executive and
         the Company, or in any way diminish the Executive's rights under any
         employee benefit plan, program or arrangement of the Company to which
         he may be entitled as an employee of the Company.

                  20. No Inconsistent Actions; Cooperation.

                           (a) The parties hereto shall not voluntarily
                  undertake or fail to undertake any action or course of action
                  inconsistent with the provisions or essential intent of this
                  Agreement. Furthermore, it is the intent of the parties hereto
                  to act in a fair and reasonable manner with respect to the
                  interpretation and application of the provisions of this
                  Agreement.

                           (b) Each of the parties hereto shall cooperate and
                  take such actions, and execute such other documents as may be
                  reasonably requested by the other in order to carry out the
                  provisions and purposes of this Agreement.

                  21. No Alienation of Benefits. To the extent permitted by law
         the benefits provided by this Agreement shall not be subject to
         garnishment, attachment or any other legal process by the creditors of
         the Executive, his beneficiary or his estate.

                  22. Effect of Prior Employment Agreement. Effective as of the
         Effective Date Executive's prior Employment Agreement with the Company
         dated April 30, 1997 and effective May 27, 1997 shall be of no further
         force or effect.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.

EXECUTIVE                               KIMCO REALTY CORPORATION,
                                        a Maryland Corporation

                                        By: /s/ Milton Cooper
                                        ------------------------------------
/s/ Michael V. Pappagallo               Chief Executive Officer
-------------------------

/s/ Donna M. Pappagallo
-------------------------

Executive's payee pursuant to Section 7(a):
Name     Donna M. Pappagallo
Address  47 Aspen Lane
         Trumbull, Ct. 06611

                                       6<PAGE>

                               FIRST AMENDMENT TO
                              AMENDED AND RESTATED
                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS FIRST AMENDMENT TO AMENDED AND RESTATED EXECUTIVE EMPLOYMENT
AGREEMENT ("First Amendment") is made as of January 1, 2002 (the "Effective
Date"), by and between Kimco Realty Corporation, a Maryland corporation
("Kimco"), and Jerald Friedman ("Employee").

                                    Recitals

         A. Employee is currently employed by Kimco, as it's Executive Vice
President; and Employee is also currently employed as the President of a
subsidiary of Kimco known as Kimco Developers, Inc. (the "Development Company"),
all pursuant to a certain Amended and Restated Executive Employment Agreement
(made as of April 3, 2000) by and between Kimco and Employee. Said Amended and
Restated Executive Employment Agreement is hereinafter referred to as the
"Agreement". A true and complete copy of the Agreement is attached hereto as
Exhibit A.

         B. Kimco and Employee wish to amend the Agreement upon the terms and
subject to the conditions herein provided.

                              Terms and Conditions

         NOW, THEREFORE, in consideration of the foregoing premises and mutual
covenants and conditions hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Kimco
and Employee hereby agree that, from and after the Effective Date, the aforesaid
Agreement shall be and hereby is amended as follows:

         1. Regarding Term of Employment. Pursuant to Section 2b of the
Agreement, the Employment Term is hereby extended for four (4) years, commencing
January 1, 2002 and expiring December 31, 2005. During such extension of the
Employment Term, Employee shall continue to be employed in his capacity as
Executive Vice President of Kimco and also in his capacity as President of
Development Company.

         2. Compensation. Section 3a of the Agreement is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:

                  "a. Salary. Commencing January 1, 2002, Employee's base annual
salary shall be $450,000 per annum, payable weekly; and in addition thereto,
Employee shall also receive an automobile allowance of $8,400 per annum to
reimburse Employee for expenses associated with the use of his personal vehicle
for business purposes. It is also agreed that Employee's base annual salary (as
well as any other bonus or compensation elsewhere provided for in the Agreement
as modified by the First Amendment) shall be re-evaluated annually in Kimco's
sole discretion; provided that in no event shall (i) Employee's base annual
salary be reduced or (ii) the definition of, or manner of calculating
"Development Company Profit" (as set forth below in this First Amendment) be
altered to Employee's detriment during the Employment Term as herein extended.
Further, Employee shall be and remain eligible for all benefit and incentive
programs available to all executives of Kimco."

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         3. Regarding Schedule B attached to the Agreement. Schedule B attached
to the Agreement is hereby amended as follows:

                  a. Paragraph 1 of Schedule B is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:

                  "It is acknowledged and agreed that Development Company has
been formed as a taxable subsidiary of Kimco and is operating as a distinct
business; and that Development Company's books and records are kept and
maintained by Kimco, in the regular course of Kimco's business, and in
accordance with generally accepted accounting principles."

                  b. Paragraphs 2 and 3 of Schedule B are each hereby deleted
in their entirety.

                  c. Paragraph 4B of Schedule B is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:

         "B. 'Development Company Profit' shall be calculated by Kimco for each
Development Company project that is, in whole or in part, either sold or is
subject to a written contract of sale which, in Kimco's reasonable judgment is
probable to be sold, such Development Company Profit to be determined by Kimco
in accordance with Development Company's books and records and also in
accordance with generally accepted accounting principles. Consistent with past
practice that has developed in the determination of Development Company Profit,
Kimco shall determine Development Company Profit without consideration or offset
for taxes, and Kimco shall continue to earn a 10% priority return on all funds
contributed to a project (whether it be in the form of debt or equity capital)."

                  d. Paragraphs 4C; 4D; 4E; and 4G are each hereby deleted in
their entirety.

                  e. Paragraph 4H of Schedule B is hereby amended by deleting
all references to the Casa Paloma project; the I-10/Fry-Houston project; and the
dollar figures appearing next to such projects.

         4. Miscellaneous. Capitalized terms which are not expressly defined
herein shall have the same meanings as are ascribed to them in the Agreement.
The Agreement, as herein amended, is hereby ratified and confirmed to be in full
force and effect.

         IN WITNESS WHEREOF, Kimco and Employee hereto have executed this First
Amendment as of the date first written above.

                                          KIMCO REALTY CORPORATION

                                          By:  /s/  Milton Cooper
                                             -------------------------------
                                          Its: Chief Executive Officer
                                          EMPLOYEE

                                          /s/ Jerald Friedman
                                             -------------------------------
                                               Jerald Friedman

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