Document:

Exhibit 10.7

 

DANIEL R. SINK

FORM OF EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of
                      ,
2004, by and between KITE REALTY GROUP TRUST, a Maryland real estate investment
trust (the “Company”), and Daniel
R. Sink (the “Executive”).

 

WHEREAS, the Company and Kite Realty Group,
L.P., the general partner of which is the Company (“Kite Realty”), are engaging in various related transactions
pursuant to which, among other things, (i) Kite Realty will acquire interests
in various entities that own or lease real estate properties in which certain
persons affiliated with the Company, including the Executive, have interests,
(ii) the Company will acquire interests in certain service businesses currently
owned by persons affiliated with the Company (the “Service Companies”) and (iii) the Company will 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, the Executive is currently employed
by one of the Service Companies, KMI Realty Advisors, Inc. (“KMI Realty Advisors”), or an affiliate of
KMI Realty Advisors; and

 

WHEREAS, in connection with the Kite IPO
Transactions, the Company wishes to offer employment to the Executive, and the
Executive wishes to accept such offer, on the terms set forth below.

 

Accordingly, the parties hereto agree as
follows:

 

1.                                       Term.  The Company hereby employs the Executive, and
the Executive hereby accepts such employment for an initial term commencing as
of the date hereof and ending on December 31, 2007, unless sooner terminated in
accordance with the provisions of Section 4 or Section 5 (the period during
which the Executive is employed hereunder being hereinafter referred to as the
“Term”).  The Term shall be subject to automatic
one-year renewals unless either party hereto notifies the other, in accordance
with Section 7.4, of non-renewal at least ninety (90) days prior to the end of
any such Term.  Notwithstanding the
employment of the Executive by the Company, the Company shall be entitled to
pay the Executive from the payroll of any subsidiary of the Company.

 

2.                                       Duties.  The Executive, in his capacity as Senior Vice
President and Chief Financial Officer shall faithfully perform for the Company
the duties of said office and shall perform such other duties of an executive,
managerial or administrative nature as shall be specified and designated from
time to time by the Board of Trustees of the Company (the “Board”), the Executive’s “Reporting
Officer” as designated in Schedule 1 and the Company’s Chief Executive Officer
(including the performance of services for, and serving on the Board of
Directors of, any subsidiary or affiliate of the Company without any additional
compensation).  The Executive shall
report to the “Reporting Officer” designated in Schedule 1 subject to the power
of the Board or the

 

 

Chief Executive Officer to
change the designated “Reporting Officer.” 
The Executive shall devote substantially all of the Executive’s business
time and effort to the performance of the Executive’s duties hereunder,
provided that in no event shall this sentence prohibit the Executive from
performing personal and charitable activities and any other activities approved
by the Board, so long as such activities do not materially and adversely
interfere with the Executive’s duties for the Company.  The Board may delegate its authority to take
any action under this Agreement to the Compensation Committee of the Board of
Trustees (the “Compensation Committee”).

 

3.                                       Compensation.

 

3.1                                 Salary.  The Company shall pay the Executive during
the Term a base salary at the rate of $210,000 per annum (the “Annual Salary”), in accordance with the
customary payroll practices of the Company applicable to senior executives
generally.  The Annual Salary may be
increased annually by an amount as may be approved by the Board or the Compensation
Committee, and, upon such increase, the increased amount shall thereafter be
deemed to be the Annual Salary for purposes of this Agreement.

 

3.2                                 Bonus.  The Executive will be eligible to participate
in the Company’s annual bonus plan (the “Bonus
Plan”), the terms of which will be established by the Compensation
Committee.  The Executive may be awarded
such restricted shares, share options and other equity-based awards under the
Company’s equity compensation plan (“Equity
Awards”) as the Compensation Committee determines to be appropriate.

 

3.3                                 Benefits
– In General.  The Executive shall be
permitted during the Term to participate in any group life, hospitalization or
disability insurance plans, health programs, pension and profit sharing plans
and similar benefits that may be available to other senior executives of the
Company generally, on the same terms as may be applicable to such other
executives, in each case to the extent that the Executive is eligible under the
terms of such plans or programs.  During
the Term, the Company shall maintain customary liability insurance for trustees
and officers and list the Executive as a covered officer.

 

With respect
to each such benefit plan and program, service with KMI Realty Advisors or any
of its affiliates (as applicable) shall be included for purposes of determining
eligibility to participate (including waiting periods, and without being
subject to any entry date requirement after the waiting period has been
satisfied), vesting (as applicable) and entitlement to benefits. The medical
plan or plans maintained by the Company shall waive all limitations as to
pre-existing conditions, exclusions and waiting periods with respect to
participation and coverage requirements. With respect to vacation benefits
provided by the Company, the vacation benefit of Executive shall include all
hours of accrued but unused vacation and sick time hours, respectively, with
KMI Realty Advisors or any of its affiliates.

 

3.4                                 Vacation.  During the Term, the Executive shall be
entitled to vacation of four (4) weeks per year.

 

3.5                                 Automobile.  During the Term, the Company will provide the
Executive an allowance of $9,000 per year for the use of an automobile
(including the payment of vehicle

 

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insurance).  At the option of the Company, in lieu of
providing such allowance, the Company will provide the Executive with an
automobile of suitable standard to the Executive’s position.

 

3.6                                 Expenses.  The Company shall pay or reimburse the
Executive for all ordinary and reasonable out-of-pocket expenses actually
incurred (and, in the case of reimbursement, paid) by the Executive during the
Term in the performance of the Executive’s services under this Agreement;
provided that the Executive submits such expenses in accordance with the
policies applicable to senior executives of the Company generally.

 

4.                                       Termination
upon Death or Disability.  If the
Executive dies during the Term, the obligations of the Company to or with
respect to the Executive shall terminate in their entirety except as otherwise
provided under this Section 4.  If the
Executive becomes eligible for disability benefits under the Company’s
long-term disability plans and arrangements (or, if none apply, would have been
so eligible under the most recent plan or arrangement), the Company shall have
the right, to the extent permitted by law, to terminate the employment of the
Executive upon notice in writing to the Executive and such termination in and
of itself shall not be, nor shall it be deemed to be, a breach of this
Agreement; provided, that, the Company will have no right to terminate the
Executive’s employment if, in the opinion of a qualified physician reasonably
acceptable to the Company, it is reasonably certain that the Executive will be
able to resume the Executive’s duties on a regular full-time basis within 90
days of the date the Executive receives notice of such termination.

 

Upon death or
other termination of employment by virtue of disability (i) the Executive (or
the Executive’s estate or beneficiaries in the case of the death of the
Executive) shall have no right to receive any compensation or benefit hereunder
on and after the Effective Date of the Termination other than Annual Salary
earned and accrued under this Agreement prior to the Effective Date of the
Termination, any bonus for the prior year not yet paid, and other benefits,
including payment for accrued but unused vacation, earned and accrued under
this Agreement prior to the Effective Date of the Termination (and reimbursement
under this Agreement for expenses incurred but not paid prior to the Effective
Date of the Termination) and an amount equal to the product of (x) the
Executive’s target annual bonus for the fiscal year of the Executive’s death or
disability and (y) a fraction, the numerator of which is the number of days in
the current fiscal year through the Effective Date of the Termination, and the
denominator of which is 365; (ii) all Equity Awards held by the Executive shall
become fully vested and exercisable; and (iii) this Agreement shall otherwise
terminate upon the Effective Date of the Termination and there shall be no
further rights with respect to the Executive hereunder (except as provided in
Section 7.13).  For purposes of this
Section 4, the “Effective Date of the Termination”
shall mean the date of death or the date on which a notice of termination by
virtue of disability is given or any later date (within thirty (30) days after
the giving of such notice) set forth in such notice of termination.

 

For the
avoidance of doubt, the Executive acknowledges and agrees that the payments set
forth in this Section 4 constitute liquidated damages for termination of his
employment during the Term upon death or by virtue of disability.

 

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5.                                       Other
Terminations of Employment.

 

5.1                                 Termination
for Cause; Termination of Employment by the Executive Without Good Reason.

 

(a)                                  For purposes of this
Agreement, “Cause” shall mean:

 

(i)                                     the
Executive’s conviction for (or pleading nolo contendere to) any felony;

 

(ii)                                  the
Executive’s commission of an act of fraud, theft or dishonesty related to the
business of the Company or its affiliates or the performance of the Executive’s
duties hereunder;

 

(iii)                               the
willful and continuing failure or habitual neglect by the Executive to perform
the Executive’s duties hereunder;

 

(iv)                              any
material violation by the Executive of the covenants contained in Section 6 or
that certain Non-Competition Agreement dated as of the date hereof between the
Executive and the Company (the “Non-Competition
Agreement”); or

 

(v)                                 the
Executive’s willful and continuing material breach of this Agreement.

 

For purposes of this Section
5.1, no act, or failure to act, by Executive shall be considered “willful”
unless committed in bad faith and without a reasonable belief that the act or
omission was in the best interests of the Company or its subsidiaries.  Notwithstanding the foregoing, if there
exists (without regard to this sentence) an event or condition that constitutes
Cause under clause (iii), (iv) or (v) above, the Executive shall have 30 days
from the date written notice is given by the Company of such event or condition
to cure such event or condition and, if the Executive does so, such event or
condition shall not constitute Cause hereunder.

 

(b)                                 For purposes of this
Agreement, “Good Reason” shall
mean, unless otherwise consented to by the Executive:

 

(i)                                     the
material reduction of the Executive’s authority, duties and responsibilities,
or the assignment to the Executive of duties materially and adversely
inconsistent with the Executive’s position or positions with the Company and
its subsidiaries;

 

(ii)                                  a
reduction in Annual Salary of the Executive except in connection with a
reduction in compensation generally applicable to senior management employees
of the Company;

 

(iii)                               the
failure by the Company to obtain an agreement in form and substance reasonably
satisfactory to the Executive from any successor to the business of the Company
to assume and agree to perform this Agreement;

 

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(iv)                              a
Change in Control (for purposes of this Agreement, “Change in Control” shall mean:

 

(A) the dissolution or liquidation of the Company, (B) the merger,
consolidation, or reorganization of the Company with one or more other entities
in which the Company is not the surviving entity or immediately following which
the persons or entities who were beneficial owners (as determined pursuant to
Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of voting securities of the Company immediately prior thereto cease to
beneficially own more than fifty percent (50%) of the voting securities of the
surviving entity immediately thereafter, (C) a sale of all or substantially all
of the assets of the Company to another person or entity, (D) any transaction
(including without limitation a merger or reorganization in which the Company
is the surviving entity) that results in any person or entity or “group” (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (other than
persons who are shareholders or affiliates immediately prior to the
transaction) owning thirty percent (30%) or more of the combined voting power
of all classes of shares of the Company, or (E) individuals who,
as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board; provided, however, that any individual becoming a
trustee subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a
majority of the trustees then comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for trustee, without written objection to
such nomination) shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of trustees or other
actual or threatened solicitation of proxies or contests by or on behalf of a
person other than the Board);

 

(v)                                 a
requirement by the Company that the Executive’s work location be moved more
than fifty (50) miles from the Company’s principal place of business in
Indianapolis, Indiana; or

 

(vi)                              the
Company’s material and willful breach of this Agreement.

 

Notwithstanding the foregoing,
if there exists (without regard to this sentence) an event or condition that
constitutes Good Reason under clause (i), (ii), (v) or (vi) above, the Company
shall have 30 days from the date on which the Executive gives the written
notice thereof to cure such

 

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event or condition and, if the
Company does so, such event or condition shall not constitute Good Reason
hereunder.  Further, an event or
condition shall cease to constitute Good Reason one (1) year after the event or
condition first occurs.

 

(c)                                  The Company may
terminate the Executive’s employment hereunder for Cause and such termination
in and of itself shall not be, nor shall it be deemed to be, a breach of this
Agreement.  If the Company terminates the
Executive for Cause, (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the
Termination other than Annual Salary and other benefits, including payment for
accrued but unused vacation (but excluding any bonuses except as provided in
the Bonus Plan) earned and accrued under this Agreement prior to the Effective
Date of the Termination (and reimbursement under this Agreement for expenses
incurred but not paid prior to the Effective Date of the Termination); and (ii)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13).  For purposes
of this Section 5.1(c), the “Effective Date
of the Termination” shall mean the date on which a notice of
termination is given or any later date (within thirty (30) days after the
giving of such notice) set forth in such notice of termination.

 

(d)                                 The Executive may
terminate his employment without Good Reason. 
If the Executive terminates the Executive’s employment with the Company
without Good Reason: (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the
Termination other than Annual Salary and other benefits, including payment for
accrued but unused vacation (but excluding any bonuses except as provided in
the Bonus Plan) earned and accrued under this Agreement prior to the Effective
Date of the Termination (and reimbursement under this Agreement for expenses
incurred but not paid prior to the Effective Date of the Termination); and (ii)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13).  For purposes
of this Section 5.1(d), the “Effective Date
of the Termination” shall mean the date on which a notice of
termination is given or any later date (within thirty (30) days after the giving
of such notice) set forth in such notice of termination.

 

(e)                                  In
the event the Company elects not to renew this Agreement as contemplated in
Section 1 above, the Executive shall receive (i) a cash payment equal to one
(1) times the sum of: (x) the Executive’s Annual Salary in effect on the day of
expiration of the Term, and (y) the average bonus actually paid to the
Executive with respect to the prior three (3) calendar years, payable no later
than 30 days after the day of expiration of the Term; and (ii) all Equity
Awards held by the Executive shall become fully vested and exercisable.

 

5.2                                 Termination
Without Cause; Termination for Good Reason. 
The Company may terminate the Executive’s employment at any time without
Cause, for any reason or no reason and the Executive may terminate the
Executive’s employment with the Company for Good Reason.  If the Company or the Executive terminates
the Executive’s employment and such termination is not described in Section 4
or Section 5.1, (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the
Termination other than Annual Salary earned and accrued under this Agreement
prior to the Effective Date of the Termination, any bonus for the prior year
not yet paid, and other benefits, including payment for accrued but unused
vacation, earned and accrued under this Agreement prior to the Effective

 

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Date of the Termination (and
reimbursement under this Agreement for expenses incurred but not paid prior to
the Effective Date of the Termination) and an amount equal to the product of
(x) the Executive’s target annual bonus for the fiscal year of the Executive’s
termination of employment and (y) a fraction, the numerator of which is the
number of days in the current fiscal year through the Effective Date of the
Termination, and the denominator of which is 365; (ii) the Executive shall
receive a cash payment equal to the Severance Payment payable no later than 30
days after the Effective Date of the Termination; (iii) for one (1) year after
the Effective Date of the Termination, the Company shall continue medical,
prescription and dental benefits to the Executive and/or the Executive’s family
at least equal to those which would have been provided to them in accordance
with the welfare benefit plans, practices, policies and programs provided by
the Company to the extent applicable generally to other peer employees of the
Company and its affiliated companies, as if the Executive’s employment had not
been terminated; provided, however, that if the Executive becomes reemployed
with another employer and is eligible to receive medical, prescription and
dental benefits under another employer provided plan, the medical, prescription
and dental benefits described herein shall be secondary to those provided under
such other plan during such applicable period of eligibility; (iv) all Equity
Awards held by the Executive shall become fully vested and exercisable; and (v)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13).  The “Severance Payment” means two (2) times the
sum of: (i) the Executive’s Annual Salary in effect on the day of termination
and (ii) the Executive’s Average Annual Bonus. 
The Executive’s “Average Annual Bonus”
means the average bonus actually paid to the Executive with respect to the
prior two (2) calendar years.  For
purposes of this Section 5.2, the “Effective
Date of the Termination” shall mean the date on which a notice of
termination is given or any later date (within thirty (30) days after the
giving of such notice) set forth in such notice of termination, or in the case
of termination of employment by the Executive for Good Reason, the date of
termination specified in such Executive’s notice of termination.

 

5.3                                 Nature
of Payments.  For the avoidance of
doubt, the Executive acknowledges and agrees that the payments set forth in
this Section 5 constitute liquidated damages for termination of his employment
during the Term.

 

6.                                       Confidential
and Proprietary Information.

 

6.1                                 Confidential
Information.  The Executive shall
keep secret and retain in strictest confidence, and shall not use for his
personal benefit or the benefit of others or directly or indirectly disclose,
except as may be required or appropriate in connection with his carrying out
his duties under this Agreement, all confidential information, knowledge or
data relating to the Company or any of its affiliates, or to the Company’s or
any such affiliate’s respective businesses and investments (including
confidential information of others that has come into the possession of the
Company or any such affiliate), learned by the Executive heretofore or
hereafter directly or indirectly from the Company or any of its affiliates and
which is not generally available lawfully and without breach of confidential or
other fiduciary obligation to the general public without restriction (the “Confidential Company Information”), except
with the Company’s express written consent or as may otherwise be required by
law or any legal process.

 

6.2                                 Return
of Documents; Rights to Products. 
All memoranda, notes, lists, records, property and any other tangible
product and documents (and all copies thereof) made,

 

7

 

produced or compiled by the
Executive or made available to the Executive concerning the businesses and
investments of the Company and its affiliates shall be the Company’s property
and shall be delivered to the Company at any time on request.  The Executive shall assign to the Company all
rights to trade secrets and other products relating to the Company’s business
developed by him alone or in conjunction with others at any time while employed
by the Company.

 

6.3                                 Rights
and Remedies upon Breach.  The
Executive acknowledges and agrees that any breach by him of any of the
provisions of this Section 6 (the “RestrictiveCovenants”) would result in
irreparable injury and damage for which money damages would not provide an
adequate remedy.  Therefore, if the
Executive breaches, or threatens to commit a breach of, any of the Restrictive
Covenants, the Company and its affiliates shall have the right and remedy to
have the Restrictive Covenants specifically enforced (without posting bond and
without the need to prove damages) by any court having equity jurisdiction,
including, without limitation, the right to an entry against the Executive of
restraining orders and injunctions (preliminary, mandatory, temporary and
permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants.  This
right and remedy shall be in addition to, and not in lieu of, any other rights
and remedies available to the Company and its affiliates under law or in equity
(including, without limitation, the recovery of damages).  The existence of any claim or cause of action
by the Executive, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement of the Restrictive Covenants.

 

7.                                       Other
Provisions.

 

7.1                                 Severability.  The Executive acknowledges and agrees that
the Executive has had an opportunity to seek advice of counsel in connection
with this Agreement.  If it is determined
that any of the provisions of this Agreement, or any part thereof, is invalid
or unenforceable, the remainder of the provisions of this Agreement shall not
thereby be affected and shall be given full affect, without regard to the
invalid portions.

 

7.2                                 Enforceability;
Jurisdictions.  The Company and the
Executive intend to and hereby confer jurisdiction to enforce the Restrictive
Covenants upon the courts of any jurisdiction within the geographical scope of
the Restrictive Covenants.  If the courts
of any one or more of such jurisdictions hold the Restrictive Covenants wholly
unenforceable by reason of breadth of scope or otherwise it is the intention of
the Company and the Executive that such determination not bar or in any way
affect the Company’s right, or the right of any of its affiliates, to the
relief provided above in the courts of any other jurisdiction within the
geographical scope of such Restrictive Covenants, as to breaches of such
Restrictive Covenants in such other respective jurisdictions, such Restrictive
Covenants as they relate to each jurisdiction’s being, for this purpose,
severable, diverse and independent covenants, subject, where appropriate, to
the doctrine of res judicata.

 

7.3                                 Attorneys’
Fees.  In the event of any legal
proceeding relating to this Agreement or any term or provision thereof, the
losing party shall be responsible to pay or reimburse the prevailing party for
all reasonable attorneys’ fees incurred by the prevailing party in connection
with such proceeding; provided, however, the Executive shall not be required to
pay or reimburse the Company unless the claim or defense asserted by the
Executive was unreasonable.

 

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7.4                                 Notices.  All notices, requests, demands, claims, and
other communications hereunder shall be in writing.  Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly delivered (i) two business
days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, (ii) when received if it is sent by facsimile
communication during normal business hours on a business day or one business
day after it is sent by facsimile and received if sent other than during
business hours on a business day, (iii) one business day after it is sent
via a reputable overnight courier service, charges prepaid, or (iv) when
received if it is delivered by hand, in each case to the intended recipient as
set forth below:

 

(i)                                     If to the Company,
to:

 

Kite Realty
Group Trust

30 S. Meridian
Street

Suite 1100

Indianapolis,
IN  46204

Attention:

Facsimile:  (317) 577-5605

 

(ii)                                  If to the Executive,
to:

Daniel R. Sink

 

 

 

with copies in
either case (which shall not constitute

notice) to:

 

Hogan &
Hartson L.L.P.

555 13th Street, NW

Washington, DC 20004

Attention:  William L. Neff, Esq.

Facsimile:  (202) 637-5910

 

and

 

Barnes & Thornburg LLP

11 South Meridian

Indianapolis, IN 46204

Attention: Robert D. MacGill, Esq.

Facsimile: (317) 231-7433

 

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Any such person may by notice
given in accordance with this Section to the other parties hereto designate
another address or person for receipt by such person of notices hereunder.

 

7.5                                 Entire
Agreement.  This Agreement, together
with the exhibits hereto and the Noncompetition Agreement, contains the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with the Company or its
subsidiaries (or any predecessor of either).

 

7.6                                 Waivers
and Amendments.  This Agreement may
be amended, superseded, canceled, renewed or extended, and the terms hereof may
be waived, only by a written instrument signed by the parties or, in the case
of a waiver, by the party waiving compliance. 
No delay on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on
the part of any party of any such right, power or privilege nor any single or
partial exercise of any such right, power or privilege, preclude any other or
further exercise thereof or the exercise of any other such right, power or
privilege.

 

7.7                                 GOVERNING
LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF INDIANA
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

7.8                                 Assignment.  This Agreement, and the Executive’s rights
and obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void.  In the event of any Change in Control, the
Company may assign this Agreement and its rights hereunder.

 

7.9                                 Withholding.  The Company shall be entitled to withhold
from any payments or deemed payments any amount of withholding required by
law.  No other taxes, fees, impositions,
duties or other charges or offsets of any kind shall be deducted or withheld
from amounts payable hereunder, unless otherwise required by law.

 

7.10                           No
Duty to Mitigate.  The Executive
shall not be required to mitigate damages or the amount of any payment provided
for under this Agreement by seeking other employment or otherwise, nor will any
payments hereunder be subject to offset in the event the Executive does
mitigate.

 

7.11                           Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns, heirs, executors and legal representatives.

 

7.12                           Counterparts.  This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original but all such counterparts together shall constitute one
and the same instrument.  Each
counterpart may consist of two copies hereof each signed by one of the parties
hereto.

 

7.13                           Survival.  Anything contained in this Agreement to the
contrary notwithstanding, the provisions of Sections 6 and 7 (to the extent
necessary to effectuate the survival of Sections 6 and 7) shall survive
termination of this Agreement and any termination of the Executive’s employment
hereunder.

 

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7.14                           Existing
Agreements.  Executive represents to
the Company that the Executive is not subject or a party to any employment or
consulting agreement, non-competition covenant or other agreement, covenant or
understanding which might prohibit the Executive from executing this Agreement
or limit the Executive’s ability to fulfill the Executive’s responsibilities
hereunder.

 

7.15                           Headings.  The headings in this Agreement are for
reference only and shall not affect the interpretation of this Agreement.

 

7.16                           Parachute
Provisions.  If any amount payable to
or other benefit receivable by the Executive pursuant to this Agreement is
deemed to constitute a Parachute Payment (as defined below), alone or when
added to any other amount payable or paid to or other benefit receivable or
received by the Executive which is deemed to constitute a Parachute Payment
(whether or not under an existing plan, arrangement or other agreement), and
would result in the imposition on the Executive of an excise tax under Section
4999 of the Internal Revenue Code of 1986, as amended, then, in addition to any
other benefits to which the Executive is entitled under this Agreement, the
Executive shall be paid by the Company an amount in cash equal to the sum of
the excise taxes payable by the Executive by reason of receiving Parachute
Payments plus the amount necessary to put the Executive in the same after-tax
position (taking into account any and all applicable federal, state and local
excise, income or other taxes at the highest applicable rates on such Parachute
Payments and on any payments under this Section 7.17 ) as if no excise taxes
had been imposed with respect to Parachute Payments.  The amount of any payment under this Section
7.17 shall be computed by a certified public accounting firm mutually and
reasonably acceptable to the Executive and the Company, the computation
expenses of which shall be paid by the Company. 
“Parachute Payment” shall mean
any payment deemed to constitute a “parachute payment” as defined in Section
280G of the Internal Revenue Code of 1986, as amended.

 

7.17                           Certain
Definitions.  For purposes of this
Agreement:

 

(a)                                  an “affiliate” of any
person means another person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such first person, and includes subsidiaries. 
Notwithstanding the foregoing, the persons listed on Exhibit A,
as such Exhibit A is updated from time to time by the mutual agreement
of the parties, shall not be affiliates of the Company.

 

(b)                                 A “business day” means
the period from 9:00 am to 5:00 pm on any weekday that is not a banking holiday
in New York City, New York.

 

(c)                                  A “subsidiary” of any
person means another person, an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient to elect at
least a majority of its board of directors or other governing body (or, if
there are no such voting interests or no board of directors or other governing
body, 50% or more of the equity interests of which) is owned directly or
indirectly by such first person.

 

11

 

IN WITNESS WHEREOF, the parties hereto have
signed their names as of the day and year first above written.

 

	
   

  	
  KITE REALTY
  GROUP TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DANIEL R.
  SINK

  
					

 

12

 

EXHIBITS AND SCHEDULES TO THE EMPLOYMENT AGREEMENT*

 

 

Exhibit A                                               Exclusion
From Affiliates

 

Schedule 1                                      Reporting
Officer

 

*           The registrant agrees
to furnish, supplementally, a copy of omitted Exhibit A and Schedule 1 upon
request.

 

13Exhibit 10.8

 

ALVIN E. KITE, JR.

FORM OF NONCOMPETITION AGREEMENT

 

THIS
NONCOMPETITION AGREEMENT (this “Agreement”) is entered into as of
                                  ,
2004 by and between Kite Realty Group Trust, a Maryland real estate investment
trust (the “Company”) and Alvin E. Kite, Jr. (the “Executive”).

 

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

 

WHEREAS,
concurrently with the execution and delivery of this Agreement, the Company and
the Executive are entering into an Employment Agreement dated as of the date
hereof, pursuant to which, among other things, the Company has agreed to employ
the Executive, and the Executive has agreed to be employed by the Company, in
accordance with the terms thereof (the “Employment Agreement”); and

 

WHEREAS, the
Company and the Executive agree that, as part of the Kite IPO Transactions, the
Executive will not engage in competition with the Company and will refrain from
taking certain other actions pursuant to the terms and conditions hereof in an
effort to protect the Company’s legitimate business interests and goodwill and
for other business purposes.

 

NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereto
agree as follows:

 

1.                                       Noncompetition.  The Executive agrees with the Company that
for the longer of (i) the three-year period beginning on the date of this
Agreement or (ii) the period during which the Executive is employed by the
Company (or any successor thereto) or its subsidiaries or Affiliates (as
defined in the Employment Agreement) (collectively, the “REIT”), and for one
year thereafter (the “Restricted Period”), the Executive will not engage in any
business involving the
development, construction, acquisition, ownership or operation of neighborhood
and community shopping centers (the “Company Business”), whether such business
is conducted by the Executive individually or as a principal, partner, member,
stockholder, director, trustee, officer, employee or independent contractor of
any Person (as defined below); provided, however,
that this Section 1 shall not

 

 

be deemed to prohibit any of the
following:  (a) any of the real estate
(and real estate-related) activities listed on Schedule A hereto and the
Executive’s ownership, marketing, sale, transfer or exchange of any of the
Executive’s interests in any of the properties or entities listed on Schedule A
hereto, (b) the direct or indirect ownership by the Executive of up to five
percent of the outstanding equity interests of any public company, (c) any
activities with respect to residential real estate and (d) a direct or
indirect ownership by the Executive of equity or similar ownership interests of
any corporation, partnership, limited liability company, joint venture,
association or other entity that is not a public company, provided that the
Executive is not involved in the management or operation of such Person or its
business (as a director, trustee, officer, employee or otherwise) and such
Person is not engaged in the Company Business.  Notwithstanding the
foregoing, during the one-year “tail” period included in the Restricted Period,
the restrictions set forth in this Section 1 shall apply only within the
following “Restricted Areas”: (I) the states of Indiana, Florida and
Texas; (II) the area within a 10-mile radius of any property owned or leased by
the REIT, as of the date of the Executive’s termination of employment; (III)
each county in each state in which the REIT owns or leases property as of the
date of the Executive’s termination of employment; and (IV) in any state in
which the REIT owns or leases at least five properties as of the date of the
Executive’s termination of employment, the area within a 50-mile radius of any
property owned or leased by the REIT, as of the date of the Executive’s
termination of employment.  For purposes of this Agreement, “Person”
means any individual, firm, corporation, partnership, company, limited
liability company, trust, joint venture, association or other entity.

 

2.                                       Nonsolicitation.
The Executive agrees with the Company that for the longer of (i) the three-year
period beginning on the date of this Agreement or (ii) the period during which the
Executive is employed by the REIT, and for two years thereafter, such
Executive will not (a) directly or indirectly solicit, induce or encourage any
employee or independent contractor to terminate their employment with the REIT
or to cease rendering services to the REIT, and the Executive shall not
initiate discussions with any such Person for any such purpose or authorize or
knowingly cooperate with the taking of any such actions by any other Person, or
(b) hire (on behalf of the Executive or any other person or entity) any
employee or independent contractor who has left the employment or other service
of the REIT (or any predecessor thereof) within one year of the termination of
such employee’s or independent contractor’s employment or other service with
the REIT.

 

3.                                       Reasonable
and Necessary Restrictions.  The
Executive acknowledges that the restrictions, prohibitions and other provisions
hereof, including, without limitation, the Restricted Area, the Restriction
Period and the restriction period set forth in Section 2, are reasonable, fair
and equitable in terms of duration, scope and geographic area, are necessary to
protect the legitimate business interests of the REIT, and are a material
inducement to the Company to enter into this Agreement and the Employment
Agreement.

 

4.                                       Specific
Performance.  The Executive
acknowledges that the obligations undertaken by such Executive pursuant to this
Agreement are unique and that the Company likely will have no adequate remedy
at law if the Executive shall fail to perform any of such Executive’s
obligations hereunder, and the Executive therefore confirms that the Company’s
right to specific performance of the terms of this Agreement is

 

2

 

essential to protect the rights and interests of the Company.  Accordingly, in addition to any other
remedies that the Company may have at law or in equity, the Company shall have
the right to have all obligations, covenants, agreements and other provisions
of this Agreement specifically performed by the Executive, and the Company
shall have the right to obtain preliminary and permanent injunctive relief to
secure specific performance and to prevent a breach or contemplated breach of
this Agreement by the Executive.  The
Executive hereby acknowledges and agrees that the Company shall not be required
to post bond as a condition to obtaining or exercising such remedies, and the
Executive hereby waives any such requirement or condition.

 

5.                                       Miscellaneous
Provisions.

 

(a)                                  Assignment;
Binding Effect.  This Agreement may
not be assigned by the Executive, but may be assigned by the Company to any
successor to its business or to any subsidiary or Affiliate of the Company and
will inure to the benefit of and be binding upon any such successor.  Subject to the foregoing provisions
restricting assignment, all covenants and agreements in this Agreement by or on
behalf of any of the parties hereto shall bind and inure to the benefit of the
respective successors, assigns, heirs, and personal representatives.

 

(b)                                 Entire
Agreement.  This Agreement, together
with the Employment Agreement, constitutes the entire agreement between the
parties hereto with respect to the matters set forth herein and supersedes and
renders of no force and effect all prior oral or written agreements,
commitments and understandings among the parties with respect to the matters
set forth herein.  This Section 5(b)
shall not be used to limit or restrict the rights or remedies, whether express
or implied, of any noncompetition or nonsolicitation policies of the REIT
applicable to the Executive.

 

(c)                                  Amendment.  Except as otherwise expressly provided in
this Agreement, no amendment, modification or discharge of this Agreement shall
be valid or binding unless set forth in writing and duly executed by each of
the parties hereto.

 

(d)                                 Waivers.  No waiver by a party hereto shall be
effective unless made in a written instrument duly executed by the party
against whom such waiver is sought to be enforced, and only to the extent set
forth in such instrument.  Neither the
waiver by either of the parties hereto of a breach or a default under any of
the provisions of this Agreement, nor the failure of either of the parties, on
one or more occasions, to enforce any of the provisions of this Agreement or to
exercise any right or privilege hereunder shall thereafter be construed as a
waiver of any subsequent breach or default of a similar nature, or as a waiver
of any such provisions, rights or privileges hereunder.

 

(e)                                  Severability.  If fulfillment of any provision of this
Agreement, at the time such fulfillment shall be due, shall transcend the limit
of validity prescribed by law, then the obligation to be fulfilled shall be
reduced to the limit of such validity; and if any clause or provision contained
in this Agreement operates or would operate to invalidate this Agreement, in
whole or in part, then such clause or provision only shall be held ineffective,
as though not herein contained, and the remainder of this Agreement shall
remain operative and in full force and effect. Notwithstanding the foregoing,
in the event

 

3

 

that the restrictions against engaging in competitive activity
contained in this Agreement shall be determined by any court of competent
jurisdiction to be unenforceable by reason of their extending for too great a
period of time or over too great a geographical area or by reason of their
being too extensive or unreasonable in any other respect, the Agreementshall be interpreted to extend only over
the maximum period of time for which it may be enforceable and over the maximum
geographical area as to which it may be enforceable and to the maximum extent
in all other respects as to which it may be enforceable, all as determined by
such court in such action and the court may limit the application of any other
provision or covenant, or modify any such term, provision or covenant and
proceed to enforce this Agreement as so limited or modified.  To the extent necessary, the parties shall
revise the Agreement and enter into an appropriate amendment to the extent
necessary to implement any of the foregoing.

 

(f)                                    Governing
Law; Jurisdiction.  This Agreement,
the rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed in accordance with the
laws of the State of Indiana, but not including the choice-of-law rules
thereof.

 

(g)                                 Headings.  Section and subsection headings contained in
this Agreement are inserted for convenience of reference only, shall not be
deemed to be a part of this Agreement for any purpose, and shall not in any way
define or affect the meaning, construction or scope of any of the provisions
hereof.

 

(h)                                 Executive’s
Acknowledgement. The Executive acknowledges (i) that he has had the
opportunity to consult with independent counsel of his own choice concerning
this Agreement, and (ii) that he has read and understands this Agreement, is
fully aware of its legal effect, and has entered into it freely based on his
own judgment.

 

(i)                                     Notices.  All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been
delivered (i) when physically received by personal delivery (which shall
include the confirmed receipt of a telecopied facsimile transmission), or
(ii) three business days after being deposited in the United States
certified or registered mail, return receipt requested, postage prepaid or
(iii) one business day after being deposited with a nationally known
commercial courier service providing next day delivery service (such as Federal
Express), to the following addresses:

 

(i)                                     if
to the Executive, to the address set forth in the records of the Company

 

(ii)                                  if
to the Company

 

Kite Realty Group
Trust

30 S. Meridian
Street

Suite 1100

Indianapolis, IN  46204

Attn: Daniel R. Sink

Telecopy No.: (317) 577-5605

 

4

 

with copies in either case (which shall not constitute notice) to:

 

Hogan & Hartson L.L.P.

555 13th Street, NW

Washington, DC 20004

Attention:  David W. Bonser, Esq.

Facsimile:  (212) 637-5910

 

and

 

Barnes & Thornburg LLP

11 South Meridian

Indianapolis, IN  46204

Attention:  Robert D. MacGill,
Esq.

Facsimile:  (317) 231-7433

 

(j)                                     Execution
in Counterparts.  To facilitate
execution, this Agreement may be executed in as many counterparts as may be
required.  It shall not be necessary that
the signature of or on behalf of each party appears on each counterpart, but it
shall be sufficient that the signature of or on behalf of each party appears on
one or more of the counterparts.  All
counterparts shall collectively constitute a single agreement.

 

 

[Remainder of page intentionally left blank.]

 

5

 

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

 

	
   

  	
  THE
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALVIN E. KITE, JR.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  KITE REALTY GROUP TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

6

 

SCHEDULES TO THE EMPLOYMENT AGREEMENT*

 

 

Schedule A                                  Excluded Activities, Properties and Interests

 

*                 The registrant
agrees to furnish, supplementally, a copy of omitted Schedule A upon request.

 

7

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