Document:

Exhibit 10.5

 

AMENDMENT TO AGREEMENT AND PLAN OF MERGER

 

This AMENDMENT TO AGREEMENT AND PLAN OF MERGER (this “Amendment”) is
entered into as of August 10, 2004 by and among Kite Realty Group Trust, a
Maryland real estate investment trust (the “REIT”), KRG Development, LLC, an
Indiana limited liability company (the “Limited Liability Company”) and Kite
Development Corporation (the “Acquired Company”).

 

WHEREAS, the REIT, the Limited Liability Company and the Acquired
Company have entered into that certain Agreement and Plan of Merger (the
“Merger Agreement”) dated as of April 5, 2004, pursuant to which, among
other things, the Acquired Company will merge with and into the Limited
Liability Company, with the Limited Liability Company surviving such merger in accordance
with the terms of the Merger Agreement (the “Merger”);

 

WHEREAS, the REIT, the Limited Liability Company and the Acquired
Company desire to amend the Merger Agreement as provided below to eliminate the
provision purporting to change the name of the Limited Liability Company
following the Merger;

 

WHEREAS, the Board of Directors of the Acquired Company has approved
and adopted the Merger Agreement, as amended by this Amendment (the “Amended
Merger Agreement”) by unanimous written consent, proposed and recommended that
the shareholders of the Acquired Company approve and adopt the Amended Merger
Agreement and submitted the Amended Merger Agreement for approval and adoption
by the shareholders of the Acquired Company;

 

WHEREAS, the shareholders of the Acquired Company have approved and
adopted the Amended Merger Agreement by unanimous written consent in accordance
with the applicable provisions of the Indiana Business Corporation Law and the
articles of incorporation and the bylaws of the Acquired Company; and

 

WHEREAS, the REIT, as sole member of the Limited Liability Company has
approved and adopted the Amended Merger Agreement in accordance with the
applicable provisions of the Indiana Business Flexibility Act and the operating
agreement of the Limited Liability Company.

 

NOW THEREFORE, for good and valuable consideration and in consideration
of the foregoing, the REIT, the Limited Liability Company and the Acquired
Company agree as follows:

 

1.                                       The Merger Agreement is hereby amended by
deleting from the end of the last sentence of Section 1.1 the following
phrase:

 

“, and its name shall be changed to “Kite Development, LLC”

 

 

2.                                       Except as expressly provided in this
Amendment, the Merger Agreement shall remain unchanged and in full force and
effect.

 

3.                                       This Amendment shall be governed in all
respects, including validity, interpretation and effect, by the laws of the
State of Indiana.

 

4.                                       This Amendment may be executed in one or more
counterparts, each of which will be deemed an original and all of which shall
constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, each of the parties hereto has executed and
delivered this Amendment, or has caused this Agreement to be executed and
delivered on its behalf, as of the date first set forth above.

 

 

	
   

  	
  KITE
  REALTY GROUP TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
  Title:

  	
  President and Chief Executive

  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  KRG
  DEVELOPMENT, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
  Title:

  	
  President and CEO, Kite Realty

  Group Trust, its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KITE
  DEVELOPMENT CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
  Title:

  	
  OfficerExhibit
10.6

 

AGREEMENT
AND PLAN OF MERGER

 

THIS AGREEMENT AND PLAN
OF MERGER (this “Agreement”) is entered into as of April 5, 2004 by and
among Kite Realty Group Trust, a Maryland real estate investment trust (the
“REIT”), KRG Realty Advisors, LLC, an Indiana limited liability company (the
“Limited Liability Company”) and KMI Realty Advisors, Inc., an Indiana
corporation (the “Acquired Company”).

 

WHEREAS, the REIT
and Kite Realty Group, L.P., a Delaware limited partnership, of which the REIT
is the indirect general partner (“Kite Realty”), are considering engaging in
various related transactions pursuant to which, among other things, (i) Kite
Realty would acquire interests in various entities that own or lease real
estate properties in which certain affiliated persons of the Acquired Company
have interests; (ii) the Limited Liability Company, of which the REIT is the
sole member, would acquire interests in certain service businesses currently
conducted by the Acquired Company and certain affiliated persons, and (iii) the
REIT would effect an initial public offering of its common shares and
contribute the proceeds therefrom for a like number of units of partnership
interest in Kite Realty (the “Kite IPO,” and together with the other
transactions described above, the “Kite IPO Transactions”);

 

WHEREAS, 100 shares of
common stock of the Acquired Company (the “Common Stock”) are issued and
outstanding;

 

WHEREAS, KMI Holdings,
LLC (the “Shareholder”) owns all of the issued and outstanding Common Stock of
the Acquired Company;

 

WHEREAS, the REIT is the
sole member of the Limited Liability Company;

 

WHEREAS, the parties
hereto have determined it to be in their respective best interests, on the
terms and conditions hereinafter set forth, that the Acquired Company be merged
with and into the Limited Liability Company, with the Limited Liability Company
surviving (the “Merger”) and the Shareholder receiving common shares of
beneficial interest, par value $0.01 per share, of the REIT (“REIT Common
Shares”);

 

WHEREAS, for
federal income tax purposes, it is intended that the Merger shall qualify as a
reorganization under Section 368(a) of the Internal Revenue Code of 1986,
as amended (the “Code”), and that this Agreement shall constitute a plan of
reorganization under Section 368(a) of the Code;

 

WHEREAS, the Board
of Directors of the Acquired Company has approved and adopted this Agreement
and the Merger, on the terms and subject to the conditions set forth in this
Agreement, proposed and recommended that the Shareholder approve and adopt this
Agreement and the Merger and submitted this Agreement and the Merger for
approval and adoption by the Shareholder;

 

WHEREAS,
concurrently with the execution and delivery of this Agreement the Shareholder
is approving and adopting this Agreement and the Merger, on the terms

 

 

and subject to the
conditions set forth in this Agreement, including the other transactions
contemplated hereby, by written consent of the Shareholder dated as of the date
hereof (the “Shareholder Consent”), in accordance with the applicable
provisions of the Indiana Business Corporation Law (the “IBCL”) and the
articles of incorporation and by-laws of the Acquired Company; and

 

WHEREAS, the REIT, as the
sole member of the Limited Liability Company, has approved and adopted this
Agreement and the Merger, on the terms and subject to the conditions set forth
in this Agreement, including the other transactions contemplated hereby in
accordance with the applicable provisions of the Indiana Business Flexibility
Act (the “IBFA”) and the operating agreement of the Limited Liability Company.

 

NOW, THEREFORE, for good
and valuable consideration and in consideration of the foregoing and of the
representations, warranties, covenants and agreements hereinafter set forth,
the parties, each intending to be legally bound hereby, agree as follows:

 

ARTICLE I:                                  PLAN
OF MERGER

 

1.1                                 Merger.
Upon the terms and subject to the conditions hereof, and in accordance with the
provisions of Section 23-18-7 et. seq. of the IBFA and Section 23-1-40
et. seq. of the IBCL, the Acquired Company shall be merged with and into the
Limited Liability Company at the Effective Time (as defined below).  The Limited Liability Company shall be the
surviving entity resulting from the Merger (the “Surviving Entity”), and the
separate existence of the Acquired Company will cease.  The Surviving Entity shall continue its
existence as a limited liability company under the laws of the State of
Indiana, and its name shall be changed to “KMI Realty Advisors, LLC.”

 

1.2                                 Closing.
Subject to the terms and conditions of this Agreement, the closing hereunder
(the “Closing”) shall occur, at the election of the REIT, (i) one business day
prior to the closing of the Kite IPO, (ii) concurrently with the closing of the
Kite IPO, or (iii) one business day following the closing of the Kite IPO,
which date the Limited Liability Company shall designate in writing to the
Acquired Company at least five business days prior to such date, at the same
location as the closing of the Kite IPO, provided that the conditions for the
Closing as set forth in Article IV hereof shall have occurred (or have
been waived by the party that benefits from such conditions), and this
Agreement shall not have been terminated pursuant to Article VI hereof.  The date on which the Closing occurs is
referred to herein as the “Closing Date.”

 

1.3                                 Effective
Time. If all the conditions to the Merger set forth in Article IV
shall have been satisfied or waived in accordance herewith and this Agreement
shall not have been terminated as provided in Article VI, following the
Closing, the parties hereto shall, at such time as they deem advisable, cause
articles of merger (the “Articles of Merger”) to be filed with the Secretary of
State of the State of Indiana in accordance with Section 23-1-40-5 and
other applicable provisions of the IBCL and the applicable provisions of the
IBFA. The Merger shall become effective on the filing of the Articles of Merger
with the Secretary of State of the State of Indiana, or such other time specified
in the Articles of Merger (the “Effective Time”).

 

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1.4                                 Operating
Agreement. The operating agreement of the Limited Liability Company in
effect immediately prior to the Effective Time shall be the operating agreement
of the Surviving Entity (subject to any subsequent amendment).

 

1.5                                 Effects
of the Merger. The merger shall have the effects set forth in
Section 23-1-40-6 of the IBCL and Section 23-18-7-5 of the IBFA.

 

1.6                                 Taxation.
It is intended that the Merger shall be treated, for federal income tax
purposes, as a reorganization under Section 368(a) of the Code and that
this Agreement shall constitute a plan of reorganization under
Section 368(a) of the Code. It is also intended that the Limited Liability
Company be disregarded as an entity separate from its owner for federal income
tax purposes. For this reason, the Limited Liability Company will not elect to
be classified as a corporation for any period prior to the effective time of
the Merger. The Limited Liability Company will be treated by default as an
entity disregarded as separate from its owner pursuant to Treasury Regulations
Section 301.7701-3(b)(1)(ii) for all periods prior to the effective time
of the Merger.  Furthermore, it is intended
that, if permissible under relevant state law, the Limited Liability Company be
disregarded as an entity separate from its owner for state tax purposes.

 

ARTICLE II:  EFFECT ON
CAPITAL STOCK AND MEMBERSHIP INTEREST

 

2.1                                 Effect
on Capital Stock of the Acquired Company. At the Effective Time, by virtue
of the Merger and without any action on the part of the holder of any shares of
Common Stock of the Acquired Company:

 

(a)                                  Outstanding
Capital Stock. Each issued and outstanding share of Common Stock of the
Acquired Company shall be converted into and become a number of fully paid and
nonassessable REIT Common Shares equal to (a) $101,780.00 divided by (b) the
public offering price per share for REIT Common Shares as set forth in the
REIT’s final prospectus relating to the Kite IPO (rounded to the nearest whole
REIT Common Share).

 

(b)                                 Cancellation
of Company Owned Stock. Any shares of Common Stock that are owned by the
Acquired Company shall be canceled and retired and no consideration shall be
delivered or deliverable in exchange therefor.

 

(c)                                  Stock
Certificates.  At the Effective
Time, each certificate representing shares of Common Stock of the Acquired
Company will be deemed for all purposes to evidence the same number of REIT
Common Shares until such certificate is exchanged for a certificate
representing REIT Common Shares. 
Following the Effective Time, the REIT shall issue a certificate
representing the number of REIT Common Shares to the Shareholder upon surrender
by the Shareholder of the certificate(s), properly endorsed for transfer,
representing shares of Common Stock of the Acquired Company, together with such
other documents as may be reasonably requested by the REIT in connection
therewith.

 

2.2                                 Outstanding
Membership Interests. The 100% interest of the REIT in the Limited
Liability Company shall continue unchanged as a 100% interest of the Surviving
Entity.

 

3

 

ARTICLE III:  REPRESENTATIONS,
WARRANTIES AND COVENANTS OF

THE ACQUIRED COMPANY AND THE SHAREHOLDER

 

As a material inducement
to the REIT and the Limited Liability Company to enter into this Agreement and
to consummate the transactions contemplated hereby, the Acquired Company (and
in the case of Sections 3.4, 3.5 and 3.8 only, the Acquired Company and the
Shareholder, severally, but not jointly) hereby makes to the REIT and the
Limited Liability Company each of the representations and warranties set forth
in this Article III, which representations and warranties are true and
correct as of the date hereof.

 

3.1                                 Authority; No
Conflicts.  The Acquired Company has all requisite corporate
power and authority to execute and deliver this Agreement and to consummate the
Merger and the other transactions contemplated hereby.  The execution and delivery by the Acquired
Company of this Agreement and the consummation by the Acquired Company of the
Merger and the other transactions contemplated hereby have been duly authorized
by all necessary corporate action on the part of the Acquired Company.  The Acquired Company has duly executed and
delivered this Agreement, and this Agreement constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms.  Subject to the receipt of the Shareholder
Consent, the execution, delivery and performance of this Agreement and each
such agreement, document and instrument by or on behalf of the Acquired Company
and compliance with the terms hereof and thereof, and the consummation of the
Merger and the other transactions contemplated hereby, (i) does not and
will not violate any foreign, federal, state, local or other laws applicable to
the Acquired Company or require the Acquired Company to obtain any approval,
consent or waiver of, or make any filing with, any person or authority (governmental
or otherwise) that will not be obtained or made prior to the Closing, other
than the filing of the Articles of Merger; (ii) does not and will not
violate the Acquired Company’s organizational documents; and (iii) does not and
will not violate any term, conditions or provisions of, or constitute a default
under, any bond, note or other evidence of indebtedness or any contract, lease
or other instrument to which the Acquired Company is a party or by which the
property of the Acquired Company is bound or affected or result in the creation
of any Encumbrance on the property or assets of the Acquired Company.

 

3.2                                 Capital
Structure. The total
number of shares of Common Stock issued and outstanding, all of which are owned
by the Shareholder, is as set forth in the recitals hereto. No shares of
Company Common Stock are held by the Acquired Company in its treasury.  Except for the shares owned by the
Shareholder, no shares of capital stock or other voting securities of the
Acquired Company are issued, reserved for issuance or outstanding.  All outstanding shares of Common Stock are
duly authorized, validly issued, fully paid and nonassessable and not subject
to or issued in violation of any purchase option, call option, right of first
refusal, preemptive right, subscription right or any similar right under any
provision of the IBCL, the Acquired Company’s articles of incorporation or
bylaws or any contract to which the Acquired Company is a party or otherwise
bound.  There are no bonds, debentures,
notes or other indebtedness of the Acquired Company having the right to vote on
any matters on which holders of Common Stock may vote.  There are not any options, warrants, rights,
contracts, arrangements or undertakings of any kind to which the Acquired
Company is a party or by which it is bound obligating the Acquired Company to
issue, grant, sell or cause to be issued, granted or sold, additional

 

4

 

shares of capital stock
or other equity interests in, or any security convertible or exercisable for or
exchangeable into any capital stock of or other equity interest in, the
Acquired Company.

 

3.3                                 Litigation.  There is no litigation or proceeding, either
judicial or administrative, pending or, to the Acquired Company’s knowledge,
threatened, affecting any Common Stock or the Acquired Company’s ability to
consummate the transactions contemplated hereby.  There is no outstanding order, writ, injunction or decree of any
court, government, governmental entity or authority or arbitration against or
affecting the Acquired Company, which in any such case would impair the
Acquired Company’s ability to enter into and perform all of its obligations
under this Agreement.

 

3.4                                 No
Agreements to Sell.  Other than this
Agreement, the Shareholder is not currently a party to any agreement to sell,
transfer or otherwise encumber or dispose of any Common Stock.

 

3.5                                 Status
as a United States Person.  The
Shareholder represents and warrants that the Shareholder is not a foreign
person within the meaning of Section 1445 of the Code
(“Section 1445”).  The
Shareholder’s taxpayer identification number that has previously been provided
to the Acquired Company is correct.  The
Shareholder’s office address is that address indicated on the signature page
attached hereto. Upon request by the REIT, the Shareholder agrees to complete
and provide to the REIT prior to the Closing a certificate of non-foreign
status substantially in the form provided in Section 1.1445-5(b)(3)(D) of
the Treasury regulations.

 

3.6                                 No
Insolvency Proceedings.  No
attachments, execution proceedings, assignments for the benefit of creditors,
insolvency, bankruptcy, reorganization or other proceedings are pending or, to
the Acquired Company’s knowledge, threatened against the Acquired Company, nor
are any such proceedings contemplated by the Acquired Company.

 

3.7                                 No
Brokers.  The Acquired Company
represents that it has not entered into, and covenants that it will not enter
into, any agreement, arrangement or understanding with any person or firm which
will result in the obligation of the REIT to pay any finder’s fee, brokerage
commission or similar payment in connection with the transactions contemplated
hereby.

 

3.8                                 Securities
Law Matters; Restrictions on Transfer.

 

(a)                                  The
Acquired Company and the Shareholder acknowledge that the REIT intends the
offer and issuance of the REIT Common Shares to be exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”) and
applicable state securities laws by virtue of (i) the status of the Shareholder
and each member of the Shareholder as an “accredited investor” within the
meaning of the federal securities laws, and (ii) Section 4(2) of the
Securities Act, and that the REIT will rely in part upon the representations
and warranties made by the Acquired Company and the Shareholder in this
Agreement in making the determination that the offer and issuance of the REIT
Common Shares qualify for exemption under Section 4(2) of the Securities
Act.

 

5

 

(b)                                 The
Shareholder and each member of the Shareholder is an “accredited investor”
within the meaning of the federal securities laws.

 

(c)                                  The
Shareholder will acquire the REIT Common Shares for his own account and not
with a view to, or for sale in connection with, any “distribution” thereof
within the meaning of the Securities Act. The Shareholder does not intend or
anticipate that the Shareholder will rely on its investment in the REIT Common
Shares as a principal source of income.

 

(d)                                 The
Shareholder has sufficient knowledge and experience in financial, tax and
business matters to enable the Shareholder to evaluate the merits and risks of
investment in the REIT Common Shares. The Shareholder has adequate means of
providing for the Shareholder’s current and anticipated financial needs and
contingencies, has the ability to bear the economic risk of acquiring the REIT
Common Stock for an indefinite period of time and has no need for liquidity in
the REIT Common Stock and could afford loss of all such investment. The
Acquired Company and the Shareholder each acknowledges that (i) the
transactions contemplated by this Agreement involve complex tax consequences
for the Shareholder, and the Shareholder is relying solely on the advice of its
own tax advisors in evaluating such consequences, (ii) neither the REIT
nor the Limited Liability Company has made (nor shall it be deemed to have
made) any representations or warranties as to the tax consequences of such
transaction to the Acquired Company or the Shareholder, and
(iii) references in this Agreement to the intended tax effect of the
transactions contemplated hereby shall not be deemed to imply any
representation by the REIT or the Limited Liability Company as to a particular
tax effect that may be obtained by the Shareholder.  The Shareholder remains solely responsible for all tax matters
relating to them.

 

(e)                                  The
Acquired Company, the Shareholder and each of the Shareholder’s members have
been supplied with, or had access to, information to which a reasonable
investor would attach significance in making an investment decision to acquire
the REIT Common Shares and any other information the Acquired Company, the
Shareholder or the Shareholder’s members has requested.  The Acquired Company, the Shareholder and
the Shareholder’s members have had an opportunity to ask questions of, and
receive information and answers from, the REIT concerning the REIT, the REIT
Common Shares and the other Kite IPO Transactions, and to assess and evaluate
any information supplied to them by the REIT, and all such questions have been
answered, and all such information has been provided to their respective full
satisfaction.

 

(f)                                    The
Acquired Company and the Shareholder acknowledge that they are aware that there
are substantial restrictions on the transferability of the REIT Common Shares
and that the REIT Common Shares will not be registered under the Securities Act
or any state securities laws. The Shareholder agrees that any REIT Common
Shares it acquires will not be sold in the absence of registration unless such
sale is exempt from registration under the Securities Act and applicable state
securities laws.  The Shareholder
acknowledges that it shall be responsible for compliance with all conditions on
transfer imposed by any securities authority and for any expenses incurred by
the REIT for legal or accounting services in connection with reviewing such a
proposed transfer or issuing opinions in connection therewith.

 

6

 

(g)                                 The
Acquired Company and the Shareholder understand that no federal agency
(including the Securities and Exchange Commission) or state agency has made or
will make any finding or determination as to the fairness of an investment in
the REIT Common Shares (including as to the merger consideration).

 

(h)                                 The
Acquired Company and the Shareholder understand that Rule 144 promulgated under
the Securities Act is not currently available with respect to the sale of REIT
Common Shares.

 

(i)                                     All certificates representing REIT Common
Shares shall bear a restrictive legend in substantially the form set forth
below (or a legend of like effect)  in
conspicuous type (together with any other legends required by law or otherwise
placed on such certificates):

 

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR UNDER APPLICABLE
STATE SECURITIES LAWS (“STATE ACTS”) AND MAY BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED ONLY UPON REGISTRATION UNDER THE SECURITIES ACT AND THE STATE ACTS
OR PURSUANT TO AN EXEMPTION THEREFROM.

 

In addition, all such
certificates shall bear an appropriate restrictive legend specifying that the
REIT Common Shares represented by such certificate are held by an affiliate of
the REIT (or, in the absence of such a legend, an appropriate notation shall be
made in the records of the REIT and/or appropriate stop-transfer instructions
shall be issued to the transfer agent).

 

ARTICLE IV: CONDITIONS TO EACH PARTY’S OBLIGATION TO

EFFECT THE MERGER

 

4.1                                 Conditions
to the REIT’s and the Limited Liability Company’s Obligations to Effect the
Merger.  The obligations of the REIT
and the Limited Liability Company to effect the Merger and the other
transactions contemplated by this Agreement are subject to the fulfillment, at
or prior to the Closing, of the following conditions (unless such conditions
are waived in writing by the REIT and the Limited Liability Company):

 

(a)                                  Other
Kite IPO Transactions.  The other
Kite IPO Transactions, in such form(s) as the REIT, in its sole and absolute
discretion, shall have determined to be acceptable, shall have occurred (or are
occurring simultaneously with the Closing).

 

(b)                                 Representations
and Warranties.  The representations
and warranties made by the Acquired Company and the Shareholder pursuant to
this Agreement shall be true and correct in all respects when made, and on and
as of the Closing Date, as though such representations and warranties were made
on the Closing Date.

 

7

 

(c)                                  Performance.  The Acquired Company shall have performed
and complied with all agreements and covenants that it is required to perform
or comply with pursuant to this Agreement prior to the Closing.

 

(d)                                 Legal
Proceedings.  No action or
proceeding by or before any governmental authority shall have been instituted
that is reasonably expected to restrain, prohibit or invalidate the
transactions contemplated by this Agreement, including the Merger, other than
an action or proceeding instituted by the Acquired Company or the Shareholder.

 

(e)                                  Consents
and Approvals.  The Shareholder
Consent and all other necessary consents of governmental and private parties to
effect the Merger and the other transactions contemplated by this Agreement,
including, without limitation, consents of any lenders, shall have been
obtained.

 

4.2                                 Conditions
to the Acquired Company’s Obligation to Effect the Merger.  The obligation of the Acquired Company to
effect the Merger and the other transactions contemplated by this Agreement is
subject to the fulfillment, at or prior to the Closing, of the following
conditions (unless such conditions are waived in writing by the Acquired
Company):

 

(a)                                  Performance.  Each of the REIT and the Limited Liability
Company shall have performed and complied with all agreements and covenants
that it is required to perform or comply with pursuant to this Agreement prior
to the Closing.

 

(b)                                 Legal
Proceedings.  No action or
proceeding by or before any governmental authority shall have been instituted
that is reasonably expected to restrain, prohibit or invalidate the
transactions contemplated by this Agreement including the Merger, other than an
action or proceeding instituted by the REIT or the Limited Liability Company;
provided, that the foregoing condition shall be deemed to have been satisfied
if the REIT or the Limited Liability Company shall have fully indemnified the
Shareholder from any loss, liability, claim, damage or expense arising out of
the Acquired Company’s proceeding to effect the Merger in the face of any such
action or proceeding.

 

(c)                                  Consents
and Approvals.  The Shareholder
Consent and all other necessary consents of governmental and private parties to
effect the Merger and other transactions contemplated by this Agreement,
including, without limitation, consents of any lenders, shall have been
obtained; provided, that the foregoing condition shall be deemed to have been
satisfied if the REIT or the Limited Liability Company shall have fully indemnified
the Shareholder from any loss, liability, claim, damage or expense arising out
of the Acquired Company’s proceeding to effect the Merger without having
obtained a necessary consent.

 

(d)                                 Registration
Rights Agreement.  The REIT shall
have entered into a registration rights agreement with the Shareholder
providing the Shareholder with registration rights that register the resale of
REIT Common Shares issued pursuant to this Agreement, such registration rights
agreement to contain such other terms and conditions customary for a
transaction of this type.

 

8

 

ARTICLE V:  OTHER
COVENANTS AND AGREEMENTS

 

5.1                                 Conditional
Nature of Transaction.  The Acquired
Company acknowledges and understands that it is a condition to the REIT’s
obligations to close the transactions contemplated hereby that the other Kite
IPO Transactions shall have occurred (or are occurring simultaneously with the
Closing), that the occurrence of any of the other Kite IPO Transactions is wholly
within the sole and absolute discretion of the REIT and its affiliates, and
that the Acquired Company has no right to force any of the other Kite IPO
Transactions to occur, on any terms.

 

5.2                                 Further
Assurances.  The Acquired Company
shall execute and deliver to the REIT and the Limited Liability Company all
such other and further instruments and documents and take or cause to be taken
all such other and further actions as the REIT or the Limited Liability Company
may reasonably request in order to effect the Merger and the other transactions
contemplated by this Agreement.

 

ARTICLE VI: TERMINATION

 

6.1                                 Termination
and Abandonment by the REIT.  The
REIT shall have the right to terminate this Agreement and abandon the Merger at
any time prior to the filing of the Articles of Merger, before or after
approval by the Shareholder or the REIT, as sole member of the Limited
Liability Company, following the occurrence of any of the following events:

 

(i)                                     the
determination by the REIT, in its sole and absolute discretion, not to proceed
with the Kite IPO Transactions;

 

(ii)                                  the
determination by the REIT, in its sole and absolute discretion, not to proceed
with the Merger on the terms outlined herein; or

 

(iii)                               at
any time on or after January 1, 2005, for any reason.

 

6.2                                 Termination
and Abandonment by the Acquired Company. 
The Acquired Company shall have the right to terminate this Agreement
and abandon the Merger at any time and for any reason on or after
January 1, 2005, but prior to the filing of the Articles of Merger,
whether or not such termination occurs before or after approval by the
Shareholder or the REIT, as sole member of the Limited Liability Company.

 

6.3                                 Effect
of Termination and Abandonment. 
Upon the termination of this Agreement and abandonment of the Merger
pursuant to Section 6.1 or 6.2 hereof, this Agreement shall become void
and have no effect, and no party shall have any liability to the other in
connection with the transactions contemplated hereby, including the Merger or
as a result of the termination of this Agreement; provided, that the foregoing
shall not relieve a party of any liability as a result of a breach of any of
the terms of this Agreement.

 

9

 

ARTICLE VII:  MISCELLANEOUS

 

7.1                                 Amendment;
Waiver.  Any amendment hereto shall
be effective only if signed by all parties hereto.  No waiver of any provisions of this Agreement shall be valid
unless in writing and signed by the party against whom enforcement is sought.

 

7.2                                 Entire
Agreement; Counterparts; Applicable Law. 
This Agreement shall (a) constitute the entire agreement between the
parties hereto with respect to the transactions expressly contemplated hereby
and supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof, (b) may be
executed in one or more counterparts, each of which will be deemed an original
and all of which shall constitute one and the same instrument, and (c) shall be
governed in all respects, including validity, interpretation and effect, by the
laws of the State of Indiana.

 

7.3                                 Assignability.  This Agreement shall be binding upon, and
shall be enforceable by and inure to the benefit of, the parties hereto and
their respective heirs, legal representatives, successors and assigns;
provided, however, that this Agreement may not be assigned (except by operation
of law) by any party without the prior written consent of the other parties,
and any attempted assignment without such consent shall be void and of no
effect; provided, further, however, that the Limited Liability Company may
assign this Agreement and any agreement contemplated hereunder or thereunder to
an affiliate of the Limited Liability Company, or to any entity into which the
Limited Liability Company is reorganized without the consent of the Acquired
Company.

 

7.4                                 Severability.  If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto.  The parties further agree to replace such
void or unenforceable provision of this Agreement with a valid and enforceable
provision that will achieve, to the extent possible, the economic, business and
other purposes of the void or unenforceable provision and to execute any
amendment, consent or agreement deemed necessary or desirable by the REIT to
effect such replacement.

 

7.5                                 Equitable
Remedies.  The parties hereto agree
that irreparable damage would occur if any provision of this Agreement was not
performed in accordance with its specific terms or was otherwise breached.  It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof in any
federal or state court located in the State of Indiana (as to which the parties
agree to submit to jurisdiction for the purposes of such action), this being in
addition to any other remedy to which they are entitled at law or in equity.

 

7.6                                 Time
of the Essence.  Time is of the
essence with respect to the Acquired Company’s obligations under this
Agreement.

 

10

 

7.7                                 No
Third Party Beneficiaries. Except for the provisions of Article II,
this Agreement is not intended to confer upon any person other than the parties
hereto any rights or remedies hereunder.

 

[Remainder of page intentionally left blank]

 

11

 

IN WITNESS WHEREOF, each
of the parties hereto has executed and delivered this Agreement, or has caused
this Agreement to be executed and delivered on its behalf, as of the date first
set forth above.

 

 

	
   

  	
  KITE REALTY
  GROUP TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
   

  	
  Title:

  	
  President and
  Chief Executive

  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KRG REALTY
  ADVISORS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KITE REALTY
  GROUP TRUST,

  its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
   

  	
  Name:

  	
   John A.
  Kite

  
	
   

  	
   

  	
  Title:

  	
  President and
  Chief Executive

  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KMI REALTY
  ADVISORS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  For purposes of
  Section 3.8 only:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KMI Holdings,
  LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOHN A. KITE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John A. Kite

  
	
   

  	
   

  	
  Title:

  	
  Member

  

 

12

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