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Exhibit 10.16  

 
 

FORM OF OPTION AGREEMENT
  (126th Street & Meridian II Medical Complex)    
    

        THIS OPTION AGREEMENT (this "Agreement") is made as of            ,
            2004 by and among, Kite Realty Group L.P., a Delaware limited partnership
("Kite Realty"), Kite 126th Street Medical II, LLC, an Indiana limited liability company ("Optionor") and Alvin E. Kite, Jr., John A. Kite, Paul W. Kite and Thomas K. McGowan (each a
"Member" and, collectively, the "Members"). 

 
 

RECITALS    
    

        WHEREAS, Kite Realty, the general partner of which is Kite Realty Group Trust, a Maryland real estate investment trust (the "REIT"), and the REIT 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 REIT, including the Members, have interests, (ii) the REIT will acquire interests in certain service businesses currently owned by persons affiliated with the REIT,
including certain of the Members and (iii) the REIT 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,
126th Street Medical II, LLC, an Indiana limited liability company (the "LLC"), currently owns that certain real property as described in  Exhibit A hereto (the "Land") and the buildings,
structures and other improvements situated on the Land or hereinafter constructed or acquired
(the "Property"); 

        WHEREAS,
Optionor is a member and currently owns a fifty percent (50%) limited liability company interest (the "Percentage Interest") in the LLC; 

        WHEREAS,
each Member currently owns the ownership interest in Optionor set forth in Exhibit B hereto (the "Member Interests"); and 

        WHEREAS,
As part of the Kite IPO Transactions, Optionor desires to grant to Kite Realty an option to acquire all of the right, title and interest in and to Optionor's membership interest
in the LLC, including, without limitation, all of Optionor's Percentage Interest, voting rights and interests in the capital, profits and losses arising out of such Percentage Interest (such right,
title and interest hereinafter collectively referred to as the "LLC Interest"), on the terms and conditions specified in this Agreement. 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows: 

 
 

ARTICLE I—THE OPTION    
    

        1.1    Grant of Option.    Optionor hereby grants to Kite Realty an option to acquire all right, title and interest of
Optionor in and to the LLC Interest free and clear of any encumbrances on the LLC Interest (other than encumbrances with respect to the Project Indebtedness (as defined in Section 3.1) or any
Entity Indebtedness (as defined in Section 5.2)) on the terms and conditions set forth herein (the "Option"). 

        1.2    Commencement of Option.    Kite Realty shall have the right to exercise the Option at any time after the
consummation of the Kite IPO until the expiration of the Option pursuant to Section 1.3. Notwithstanding the foregoing, in the event the Kite IPO is not consummated prior to January 1,
2005, this Agreement shall become null and void and no party shall have any liability to the other parties hereunder with respect to the transactions contemplated hereby. 

 

        1.3    Expiration of Option.    Subject to Section 6.1 hereof, the Option shall expire on the fifth anniversary
of the consummation of the Kite IPO (the "Option Term"). 

        1.4    Consents.    The consummation of the transactions contemplated by this Agreement are subject to any consents
required under the organizational documents of the LLC, any consents required under the "Project Indebtedness" and any "Entity Indebtedness" and (a) in the case of the transfer of the LLC
Interest, any other consents required to be obtained prior to the transfer of the LLC Interest, or (b) in the case of the transfer of the Member Interests pursuant to Section 5.2, any
other consents required to be obtained prior to the transfer of the Member Interests. 

        1.5    Subordination.    The Option granted by this Agreement and the rights of Kite Realty hereunder are and shall be
subordinate to the Project Indebtedness and any Entity Indebtedness. 

 
 

ARTICLE II—Process for Exercise of the Option    
    

        2.1    Exercise.    The Option may be exercised during the Option Term by delivery of written notice by Kite Realty to
Optionor (the "Exercise Notice"), stating that the Option is exercised on the terms set forth in this Agreement. The Exercise Notice shall specify the name of the First Appraiser (as defined in
Section 3.1(a)(ii)). The date upon which the Exercise Notice is delivered by Optionor in accordance with this Agreement is hereinafter referred to as the "Exercise Date." If the Option is
timely exercised, subject to Section 3.1(f), the LLC Interest shall be conveyed, and the closing date of such acquisition, transfer and conveyance (the "Closing Date") shall occur, within
45 days after the determination of the Acquisition Consideration (as defined in Section 3.1) in accordance with Section 3.1. The exercise of the option is subject to the approval
of the "independent" members of the Board of Trustees of the REIT (as defined in the REIT's Bylaws), as general partner of Kite Realty. 

        2.2    Inspection.    During the term of this Agreement and following consent of the LLC (which Optionor agrees to use
its commercially reasonable efforts to obtain), Optionor agrees to permit Kite Realty and Kite Realty's agents to enter upon the Property, subject to the rights of any tenants, at reasonable times to
make such surveys, inspections and tests as may reasonably be necessary in connection with its examination of the Property. Kite Realty hereby agrees to repair any damage it or its agents may cause to
the Property as a result of any such inspections or tests or any other related damage caused by Kite Realty or its agents, and further agrees to indemnify, defend and hold Optionor, Optionor's
managers, the LLC and the Members harmless from and against any and all claims, losses, damages and expenses, including, without limitation, reasonable attorneys' fees, suffered by Optionor,
Optionor's managers, the LLC and/or the Members as a direct result of the entry by Kite Realty or Kite Realty's agents upon, or acts upon, the Property in connection with any such inspections or tests
or any other related damage caused by Kite Realty or its agents. 

        2.3    Information.    Optionor agrees to permit Kite Realty and its agents to review all books, records and other
documentation reasonably requested by Kite Realty with respect to Optionor, the LLP, the LLC Interest, the Member Interests and/or the Property, which are in Optionor's possession and control.
Optionor will provide (or cause to be provided), upon request from Kite Realty, a report of the status of the LLC Interest and the Property (to the extent within Optionor's possession and control), on
a quarterly basis, which report shall include unaudited financials and such other information and data as Kite Realty may reasonably request regarding the LLC Interest and the Property (to the extent
within Optionor's possession and control); it being understood that, to the extent Kite Realty or any of its subsidiaries or affiliated companies is providing administrative services to the LLC and/or
Optionor with respect to the Property and/or the LLC Interest (including, without limitation, accounting and record-keeping services), Optionor shall be deemed to have satisfied its obligation under
this Section 2.3 to the extent that the information requested by this Section 2.3 is available to Kite Realty or such subsidiaries or affiliated companies in connection with the
performance of such administrative services, and such information should be deemed to have been delivered by 

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Optionor
to Kite Realty pursuant to this Section 2.3 (notwithstanding any obligations with respect to such information—confidential or otherwise—contained in any
agreement providing for the performance of such administrative services). 

 
 

ARTICLE III—ACQUISITION PROCESS    
    

        3.1    Acquisition Consideration.    

        (a)   The
acquisition consideration to be paid by Kite Realty for the LLC Interest (the "Acquisition Consideration") pursuant to an exercise of the Option under
Section 2.1 shall be equal to the product of (x) 95% of the fair market value of the Property at the time, as determined in accordance with this Section 3.1 ("FMV"), less the
Project Indebtedness, multiplied by (y) the Percentage Interest. 

        (i)    FMV
for this purpose shall mean the price at which a willing buyer would buy, and a willing seller would sell, the Property in an arms-length transaction
assuming the Property is sold in an orderly disposition and each of the buyer and seller are aware of, and take into account, all relevant factors which exist at the time. 

        (ii)   In
the Exercise Notice, Kite Realty shall designate an appraiser (the "First Appraiser") to determine FMV for the Property. Optionor then shall have 10 days
after receiving such notice to designate a
second appraiser (the "Second Appraiser") by written notice to Kite Realty. If Optionor fails to timely designate the Second Appraiser, FMV shall be determined by the First Appraiser. The First
Appraiser and the Second Appraiser each shall separately determine FMV in accordance with Section 3.1(a) and shall provide a detailed written valuation report to each of Optionor and Kite
Realty within 45 days after the last day for designating the Second Appraiser. The designation of the First Appraiser shall be approved by a majority of the members of the Board of Trustees of
the REIT, which majority must include a majority of "independent" trustees, as defined in the REIT's Bylaws. If only one appraiser timely submits a proper valuation report, its FMV determination shall
be final, binding and conclusive for purposes of this Agreement. If both appraisers timely submit proper valuation reports, and their FMV determinations vary by 10% or less, FMV shall be equal to the
average of the two FMV determinations. If both appraisers timely submit proper valuation reports, and their FMV determinations vary by more than 10%, the two appraisers shall promptly appoint a third
appraiser (the "Third Appraiser"), which shall independently determine FMV in accordance with Section 3.1(a) and shall provide a detailed written valuation report to each of Optionor and Kite
Realty within 45 days after its appointment. FMV shall then be equal to the average of the two closest FMV determinations submitted by the three appraisers. FMV as determined in accordance with
Section 3.1(a) shall be final, binding and conclusive for purposes of this Agreement. 

        (iii)  In
preparing its FMV determination, each appraiser shall be provided with the same Property-specific source documents and information and the same access to personnel.
Each appraiser shall determine a single point estimate of FMV, not a range of values. Only qualified real estate appraisers with at least five years' prior experience in the valuation of properties
comparable to the Property in the area in which such Property is located, and that do not have any financial interest in any entities affiliated with the Members (excluding any existing or prior
agreement or contractual arrangement to provide advisory or appraisal services to any such Members or any affiliates thereof) may be validly appointed to serve as an appraiser hereunder. Subject to
Section 3.1(f), each of Optionor and Kite Realty shall pay all fees and costs of the appraiser designated by it and one-half of all fess and costs of the Third Appraiser, if any. 

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        (iv)  "Project
Indebtedness" means any outstanding financing or other arrangements entered into by or on behalf of the LLC after the date hereof which relate to the Property,
including, without limitation, any mezzanine or bridge financing, or amendments or extensions thereof. The transfer of the LLC Interest as contemplated by this Agreement shall be subject to any
Project Indebtedness. 

        (b)   On
the Closing Date, the Acquisition Consideration shall be payable by Kite Realty, in the form of units of limited partnership interest in Kite Realty ("Units") or
cash, in the sole and absolute discretion of Kite Realty. The value of Units shall be their "Market Value" as defined in this Section 3.1(b), and the number of Units shall be rounded to the
nearest whole number of Units to avoid the issuance of fractional Units. The term "Market Value" means the average closing price of the common shares of beneficial interest, $0.01 par value per share,
of the REIT (or any successor thereto) ("Common Shares") for the 10 consecutive trading days immediately preceding (but not including) the Closing Date. For purposes of determining Market Value, one
Unit shall equal one Common Share, subject to any adjustments required under the Amended and Restated Agreement of Limited Partnership of Kite
Realty, as may be amended and/or restated from time to time (the "Partnership Agreement"), or to reflect stock splits, reclassifications, dividends in-kind and the like. 

        (c)   On
the Closing Date, all reserves held by or on behalf of Optionor as required by applicable lenders or otherwise with respect to the Property or the LLC Interest shall
either be (i) retained by or returned to Optionor, or (ii) transferred to Kite Realty in which event a credit shall be applied to increase the Acquisition Consideration by the amount of
such transferred reserves. 

        (d)   In
exercising the Option, Kite Realty will use reasonable commercial efforts to cooperate with Optionor and the Members to minimize any taxes, fees or prepayment
penalties payable in connection with such exercise or the assumption or repayment of indebtedness relating to the LLC Interest; provided that, except as otherwise set forth in this Agreement, such
cooperation shall not require Kite Realty to unreasonably delay the Closing Date or require Kite Realty to assume additional liabilities or incur any material amount of
out-of-pocket expenses. 

        (e)   Pursuant
to the Partnership Agreement, Units are exchangeable into Common Shares. It is currently anticipated that such Common Shares will be entitled to certain
registration rights consistent with the REIT's practice at the time such Units are issued and subject to any restrictions or agreements affecting such rights to which the REIT or Kite Realty is bound. 

        (f)    Kite
Realty may decide at any time after delivery of an Exercise Notice, but before the Closing Date, not to proceed with the acquisition of the LLC Interest as
specified in the Exercise Notice; provided, that if Kite Realty revokes such Exercise Notice following the date on which any appraiser is appointed pursuant to Section 3.1(b), Kite Realty shall
bear all of the costs and expenses of the appraisers incurred up to the date on which Kite Realty notifies Optionor and such appraisers of such revocation; and, provided further, that if a final FMV
determination is made in accordance with Section 3.1 prior to Kite Realty's revocation of such Exercise Notice, such FMV determination shall be deemed to constitute the FMV of the Property for
purposes of subsequent exercises of the Option for a period of six months following the date of such revocation. 

        3.2    Acquisition Agreement.    On or prior to the Closing Date (subject to Section 3.1(f)), Optionor, the
Members and Kite Realty shall execute and deliver the closing documentation attached hereto as Exhibit C (the "Closing Documentation"). Optionor,
the Members and Kite Realty shall thereafter additionally acknowledge, execute, deliver and/or file (as the case may be) any and all other documents, agreements or instruments reasonably necessary or
appropriate to effectuate the acquisition, transfer and conveyance of the LLC Interest in accordance with the terms of this Agreement. 

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        3.3    Withholding.    Optionor shall execute upon the conveyance of the LLC Interest such certificates or affidavits
reasonably necessary to document the inapplicability of any federal or state tax withholding provisions, including, without limitation, those referred to in Section 7.4 below. If Optionor fails
to provide such certificates or affidavits, Kite Realty may withhold a portion of the Acquisition Consideration as required by the Internal Revenue Code of 1986, as amended (the "Code") or applicable
state law. 

        3.4    Taxes.    If the transactions contemplated by this Agreement are consummated, then the following shall apply: 

        (a)   Acquisition is Treated as Contribution.    If the Acquisition Consideration consists in whole or in part of
Units, the transfer, assignment and exchange contemplated by this Agreement shall constitute a "Capital Contribution" to Kite Realty pursuant to Article IV of the LLC Agreement and is intended
to be governed by Section 721(a) of the Code, and the parties agree to report this transaction consistent with such treatment. 

        (b)   Cooperation and Tax Disputes.    Optionor and the Members, on the one hand, and Kite Realty, on the other hand,
shall provide each other with such cooperation and information relating to the LLC Interest, the Member Interests, and to the extent within Optionor's possession and control, the LLC and the Property,
as the parties reasonably may request in (i) filing any tax return, amended tax return or claim for tax refund, (ii) determining any liability for taxes or a right to a tax refund or
(iii) conducting or defending any proceeding in respect of taxes. Any time after the date hereof, Kite Realty shall promptly notify Optionor or the Members, as applicable, in writing upon
receipt by Kite Realty or any of its affiliates of notice of (i) any pending or threatened tax audits or assessments with respect to the LLC Interest or the Member Interests and (ii) any
pending or threatened federal, state, local or foreign tax audits or assessments of Kite Realty or any of its affiliates, in each case which may affect the liabilities for taxes of Optionor or any of
the Members with respect to any tax period ending on or before the Closing Date. Optionor and each Member shall promptly notify Kite Realty in writing upon receipt by Optionor or such Member, as the
case may be, of notice of any pending or threatened federal, state, local or foreign tax audits or assessments relating to the income, properties or operations of the Optionor or the LLC, the
Property, the LLC Interest or any of the Member Interests. Each of Kite Realty, on the one hand, and Optionor and/or the Members, on the other hand, may participate at its own expense in the
prosecution of any claim or audit with respect to taxes attributable to any taxable period ending on or before the Closing Date, provided, that Optionor and/or the Members shall collectively have the
right to control the conduct of any such audit or proceeding or portion thereof for which Optionor and/or such Members, as the case may be, have acknowledged liability (except as a partner of Kite
Realty) for the payment of any additional tax liability, and Kite Realty shall have the right to control any other audits and proceedings. Notwithstanding the foregoing, neither Kite Realty, on the
one hand, nor Optionor and/or the Members, on the other hand, may settle or otherwise resolve any such claim, suit or proceeding which could have an adverse tax effect on the other party or its direct
or indirect owners without the written consent of the other party, such written consent not to be unreasonably withheld or delayed. Each party shall retain all tax returns, schedules and work papers,
and all material records and other documents relating thereto, until the expiration of the statute of limitations (and, to the extent notified by any party, any extensions thereof) of the taxable
years to which such tax returns and other documents relate and until the final determination of any tax in respect of such years. 

        (c)   Tax Allocations.    With respect to the LLC Interest that is directly or indirectly contributed to Kite Realty
as provided in Section 3.4(a) above, the parties agree that Kite Realty shall use the "traditional method", as described in Treasury Regulation Section 1.704-3(b), to make
allocations of taxable income and loss among the partners of Kite Realty. 

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        (d)   Transfer Taxes.    Kite Realty shall pay the cost of all documentary transfer taxes arising from the sale of
the LLC Interest pursuant to the exercise by Kite Realty of the Option or from the transfer of the Member Interests pursuant to Section 5.2. 

        (e)   Closing Costs.    Any recording fees, escrow fees, and other closing costs (except documentary transfer taxes
as provided in Section 3.4(d) above) shall be allocated according to custom and practice based on the location of the Property. 

        (f)    Survivability.    This Section 3.4 shall survive the termination of this Agreement for a period of one
year from the date of such termination. 

 
 

ARTICLE IV—RIGHT OF FIRST REFUSAL    
    

        4.1    Right of First Refusal.    If Optionor receives a bona fide, good faith offer from an unaffiliated third party
to purchase all right, title and interest in and to the LLC Interest (the "Offer") at any time during the "ROFR Term" (as defined in Section 4.4), then, subject only to Kite Realty's right of
first refusal contained in this Article IV, Optionor shall have the right to convey the entire LLC Interest to such third party during the term of this Agreement. If Optionor desires to accept
the Offer, Optionor shall first give written notice (the "ROFR Notice") thereof to Kite Realty (the date the ROFR Notice is delivered by Kite Realty in accordance with this Agreement is referred to as
the "Notice Date"), which ROFR Notice shall include the proposed purchase price (the "Purchase Price"), the identity of the proposed transferee (the "Transferee") and other material terms
(collectively, the "Acquisition Terms") of the proposed transfer of the LLC Interest. Kite Realty shall have 30 days from the Notice Date either (i) to deliver written notice to Optionor
(the "OP Notice") of its election to acquire the LLC Interest for the same Purchase Price (payable in cash or Units, in Kite Realty's sole and absolute discretion) and otherwise on substantially the
same Acquisition Terms as set forth in the Offer, or (ii) to deliver an Exercise Notice pursuant to the exercise of its Option under Section 2.1. 

        4.2    Acquisition Process.    If Kite Realty timely delivers an Exercise Notice following receipt of a ROFR Notice,
subject to Section 4.1, the provisions of Article III shall govern the acquisition of the LLC Interest. If Kite Realty timely delivers an OP Notice following receipt of a ROFR Notice,
subject to Section 4.1, the provisions of Article III (excluding Section 3.1(a)) shall govern the acquisition of the LLC Interest to the extent not inconsistent with the
Acquisition Terms; it being understood that if the Purchase Price is paid in Units, the value of Units shall be their Market Value as defined in Section 3.1(b). 

        4.3    Failure to Timely Exercise Right.    If Kite Realty fails to timely submit an Exercise Notice or OP Notice
following receipt of a ROFR Notice, Kite Realty's rights under this Agreement with respect to the LLC Interest shall expire and be of no further force or effect; provided, however, that such rights
shall be revived and reinstated in favor of Kite Realty in the event Optionor does not consummate the transaction with the Transferee on terms which are generally as good or more favorable to Optionor
than the Acquisition Terms within 90 days following the Notice Date. 

        4.4    ROFR Term.    The term of the right of first refusal contained in this Article IV shall run concurrently
with the Option Term (the "ROFR Term"). 

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ARTICLE V—ADDITIONAL AGREEMENTS AND COVENANTS    
    

        5.1    Marketing the LLC Interest for Sale.    Optionor agrees not to affirmatively market the LLC Interest for sale
during the Option Term. 

        5.2    Alternative Transaction—Member Interest Acquisition.    

        (a)   Consent to Alternative Transaction.    Optionor and the Members acknowledge and understand that Kite Realty may
desire to effectuate a transfer of the LLC Interest, other than through the direct acquisition of the LLC Interest as contemplated hereby, and that Kite Realty may determine that it is more desirable
or appropriate to accomplish the transfer of the LLC Interest through the acquisition of 100% of the Member Interests (the "Member Interest Acquisition"). Optionor and the Members hereby consent to
the Member Interest Acquisition, and agree to cooperate with Kite Realty; provided, that the Members receive, in the aggregate, the amount of cash or number of Units to which Optionor would be
entitled under Section 3.1 upon the sale of the LLC Interest pursuant to this Agreement, subject to the adjustments in Section 5.2(b); it being understood that the form of consideration
shall be determined in the sole and absolute discretion of Kite Realty. 

        (b)   Member Interest Acquisition Consideration.    Notwithstanding anything to the contrary in this Agreement, the
Acquisition Consideration payable for the Member Interests shall be reduced by the amount of any Entity Indebtedness assumed or repaid by Kite Realty (including, without limitation, the payment of any
applicable prepayment, assumption or other fees, costs and penalties). For purposes of this Section 5.2(b), the value of outstanding Entity Indebtedness assumed by Kite Realty shall be the
principal amount thereof and any accrued and unpaid interest, plus any related prepayment, assumption and other fees, costs and penalties incurred by Kite Realty in connection with Kite Realty's
assumption of such Entity Indebtedness. "Entity Indebtedness" means any outstanding financings or other arrangements entered into by Optionor (or any affiliate of Optionor) prior to the date hereof
which relate to the LLC Interest, the Optionor or the Member Interests and secured by a pledge of the LLC Interest or Member Interests or which otherwise encumbers the LLC Interest or Member
Interests. Notwithstanding anything to the contrary contained herein, "Entity Indebtedness" shall not include any Entity Indebtedness to the extent that the aggregate of all Entity Indebtedness (plus
accrued and unpaid interest and any related prepayment, assumption or other fees, costs and penalties) exceeds the Acquisition Consideration. Any financings or other arrangements encumbering the LLC
Interest or Member Interests in excess of the amount of the Acquisition Consideration (as adjusted pursuant to this Section 5.2(b)) shall be the responsibility of Optionor and shall be prepaid
or repaid at or prior to the Closing Date. Optionor shall provide Kite Realty with notice of any known default under any Entity Indebtedness and shall provide copies of any written default notices
Optionor may receive from the lenders of such indebtedness. 

        (c)   Acquisition Process.    In the event that Kite Realty elects to accomplish the transfer of the LLC Interest
through the Member Interest Acquisition: (i) the Exercise Notice shall specify that Kite Realty elects to effectuate the Member Interest Acquisition pursuant to this Section 5.2;
(ii) subject to this Section 5.2, the provisions of Article III shall govern the Member Interest Acquisition; (iii) the purchase price to be paid by Kite Realty for the
Member Interests shall be equal to the Acquisition Consideration for the LLC Interest as calculated in accordance with Section 3.1(b), subject to the adjustments in Section 5.2(b), with
each Member entitled to receive such Member's pro rata share of such Acquisition Consideration based on such Member's percentage interest in Optionor (as set forth in  Exhibit B); (iv) subject
to Section 3.1(f), the Member Interests shall be conveyed, and the Closing Date of such acquisition shall
occur, within 45 days after the determination of the Acquisition Consideration in accordance with Section 3.1; and (v) on or prior to the Closing Date, subject to
Section 3.1(f), the Members, Optionor and Kite Realty shall execute and deliver the closing documentation attached hereto as Exhibit D
regarding the Member Interest Acquisition, and, thereafter, the Members, Optionor and Kite Realty shall additionally acknowledge, execute, deliver 

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and/or
file (as the case may be) any and all other documents, agreements or instruments reasonably necessary or appropriate to effectuate the Member Interest Acquisition in accordance with the terms
of this Agreement. 

        5.3    Further Assurance.    Optionor and each Member shall execute and deliver to Kite Realty all such other and
further instruments and documents and take or cause to be taken all such other and further actions as Kite Realty may reasonably request in order to effect the transactions contemplated by this
Agreement, including, without limitation, instruments or documents deemed necessary or desirable by Kite Realty to effect and evidence the acquisition of the LLC Interest or the Member Interest
Acquisition in accordance with the terms of this Agreement. 

        5.4    Consent to Other Approvals.    Optionor and each Member hereby acknowledges and agrees that the execution and
delivery of this Agreement by Optionor and such Member shall constitute the consent, waiver or approval by Optionor and by such Member, pursuant to applicable law or Optionor's organizational
documents or other agreements, to the transactions contemplated hereby, including, without limitation, the Member Interest Acquisition. For the avoidance of doubt, to the extent the consent, waiver or
approval of a Member or Optionor is required to effectuate any of the transactions contemplated by this Agreement, such Member or Optionor shall be deemed to have given such consent, waiver or
approval pursuant hereto. 

 
 

ARTICLE VI—TERMINATION    
    

        6.1    Termination of this Agreement.    This Agreement shall terminate and be of no further force or effect upon the
earlier to occur of: 

        (a)    the
acquisition by Kite Realty of all right, title and interest of Optionor in the LLC Interest in accordance with this Agreement; 

        (b)    the
termination of the Option and right of first refusal pursuant to Section 4.3 hereof; 

        (c)    the
fifth anniversary of the consummation of the Kite IPO; it being understood that, if on or prior to the date of such expiration: (i) Kite Realty has properly
delivered an Exercise Notice or OP Notice, this Agreement shall remain in effect for purposes of effectuating the acquisition of the LLC Interest or the Member Interests pursuant to such Exercise
Notice or OP Notice, or (ii) Optionor has received an Offer for which a ROFR Notice has not yet been delivered by Kite Realty, or less than 30 days was elapsed since the date of the
receipt by Kite Realty of the ROFR Notice, this Agreement shall remain in effect for purposes of permitting Kite Realty to exercise its rights under Article IV hereof and purchase the LLC
Interest or the Member Interests; or 

        (d)    the
sale, transfer or contribution by the LLC of all the parcels comprising the Property. 

        6.2    Procedure if Option Terminates.    

        (a)   Notice of Termination.    If this Agreement is terminated pursuant to Section 6.1(b) or
Section 6.1(d) prior to the expiration of the Option Term, Optionor and the Members will provide notice of such termination to Kite Realty (the "Option Termination Notice"). The delivery of the
Option Termination Notice shall not be a condition precedent to the effectiveness of such termination. 

        (b)   Verification of Termination.    Upon receipt of the Option Termination Notice, Kite Realty agrees that, if this
Agreement is terminated, in accordance with its terms, Kite Realty will execute, acknowledge and deliver to Optionor in recordable form with appropriate authorization for recording, within
10 days from request therefore, a quitclaim deed or any other document reasonably requested by Optionor or a title insurance company to verify the termination of this Agreement, including,
without limitation, the Option. 

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        (c)   Right to Documents.    Upon receipt of the Option Termination Notice, Kite Realty shall forthwith deliver (or
cause to be delivered) to Optionor and shall be deemed to have assigned to Optionor (without the execution of further documentation or instruments), any governmental applications, permits, maps,
plans, specifications and other documents in its possession or that it has made or contracted to be made respecting the Property or the LLC Interest, including, without limitation, all engineering
reports, surveys, soil tests, seismic studies, environmental reports, grading, flood control and drainage plans, design renderings, market analyses, feasibility studies, proposed tentative, parcel and
final maps, and all correspondence with governmental agencies and their personnel concerning the same (other than materials in Kite Realty's or any subsidiary's or affiliated company's possessions or
pursuant to any continuing agreement between Kite Realty, on the one hand, and Optionor or any of the Members, on the other hand). 

        6.3    Effects of Termination.    In the event of termination of this Agreement pursuant to Section 6.1, the
provisions of Sections 3.4, 6.1, 6.2 and 6.3 and Articles VIII and IX shall survive the termination of this Agreement; it being understood that, with respect to termination pursuant to
Section 6.1(a), the provisions of this Agreement that contemplate performance after the Closing Date and the obligations of the parties not fully performed on the Closing Date shall survive the
Closing Date and shall not be deemed to be merged into or waived by the instruments executed as of the Closing Date. Notwithstanding the foregoing, nothing in this Section 6.3 shall be deemed
to release any party from liability for any breach by such party of the terms or provisions of this Agreement or to impair the right of any party to enforce its respective rights hereunder. 

 
 

ARTICLE VII—REPRESENTATIONS, WARRANTIES AND COVENANTS    
    

        As a material inducement to Kite Realty to enter into this Agreement, Optionor and each Member hereby make to Kite Realty, severally but not jointly, each of the
representations and warranties set forth in this Article VII, which representations and warranties are true and correct as of the date hereof, and hereby covenant as follows: 

        7.1    Organization; Authority.    Optionor is duly formed, validly existing and in good standing (to the extent
applicable) under the laws of its jurisdiction of formation. Optionor and each Member have full right, authority, power and capacity: (a) to enter into this Agreement and each agreement,
document and instrument to be executed and delivered by or on behalf of Optionor and such Member pursuant to this Agreement and (b) to carry out the transactions contemplated hereby and
thereby. This Agreement and each agreement, document and instrument executed and delivered by or on behalf of Optionor and such Member pursuant to this Agreement constitutes, or when executed and
delivered will constitute, the legal, valid and binding obligation of Optionor and such Member, each enforceable in accordance with its respective terms. The execution, delivery and performance of
this Agreement and each such agreement, document and instrument by or on behalf of Optionor and such Member: (i) does not and will not violate any foreign, federal, state, local or other laws
applicable to Optionor or such Member or require Optionor or such Member to obtain any approval, consent or waiver of, or make any filing with, any person or authority (governmental or otherwise) that
has not been obtained or made prior to the date hereof (other than approvals, consents or waivers under any Project Indebtedness or Entity Indebtedness); and (ii) 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 Optionor or such Member is a
party or by which the property of Optionor or such Member is bound or affected. 

        7.2    Title to the LLC Interest; No Agreements to Sell.    Optionor owns beneficially and of record, free and clear
of any claim, lien (including, without limitation, tax liens), option, charge, security interest, mortgage, deed of trust, encumbrance, rights of assignment, purchase rights or other rights of any
nature whatsoever of any third party (collectively, "Encumbrances"), and has full power and authority to convey free and clear of any Encumbrances, the LLC Interest, except (i) Encumbrances 

9

 

created
in favor of Kite Realty by the transactions contemplated hereby, (ii) Encumbrances that are extinguished at or prior to the Closing Date, and (iii) Encumbrances relating to the
Project Indebtedness or any Entity Indebtedness. Other than this Agreement, Optionor is not currently a party to any agreement to sell, transfer or otherwise encumber or dispose of, and has no
obligation (absolute or contingent) to sell, the LLC Interest owned by Optionor. Optionor covenants and agrees not to encumber the LLC Interest during the Option Term except in connection with the
Project Indebtedness and any Entity Indebtedness. 

        7.3    Title to the Member Interests; No Agreements to Sell.    Each Member owns beneficially and of record, free and
clear of any Encumbrances, and has full power and authority to convey free and clear of any Encumbrances, the Member Interests listed on  Exhibit B hereto as owned by such Member, except
(i) Encumbrances created in favor of Kite Realty by the transactions contemplated hereby,
(ii) Encumbrances that are extinguished at or prior to the Closing Date, and (iii) Encumbrances relating to the Project Indebtedness or any Entity Indebtedness. Other than this
Agreement, such Member is not currently a party to any agreement to sell, transfer or otherwise encumber or dispose of, and has no obligation (absolute or contingent) to sell, the Member Interests
owned by such Member. Each Member covenants and agrees not to encumber such Member's Member Interests during the Option Term except in connection with the Project Indebtedness and any Entity
Indebtedness. 

        7.4    Status as a United States Person.    Neither Optionor nor any of the Members is a foreign person within the
meaning of Section 1445 of the Internal Revenue Code ("Section 1445"). Optionor's U.S. taxpayer identification number and each Member's social security number that have previously been
provided to Kite Realty are correct. Optionor's office address and each Member's home address are the addresses set forth opposite their signatures below. Upon request by Kite Realty, Optionor and
each Member agrees to complete and provide to Kite Realty a certificate of non-foreign status substantially in the form provided in Section 1.1445-5(b)(3)(D) of the
Treasury regulations. 

        7.5    No Brokers.    Neither Optionor nor any of the Members has entered into, and covenants that it or he will not
enter into, any agreement, arrangement or understanding with any person or firm which will result in the obligation of Kite Realty to pay any finder's fee, brokerage commission or similar payment in
connection with the transactions contemplated hereby. 

        7.6    Assets.    The LLC Interest is the sole asset of the Optionor other than cash or cash equivalents. Optionor
covenants not to acquire any assets other than those to be made part of or used in connection with the LLC Interest. 

        7.7    Accredited Investor Status.    Each Member is an "accredited investor" within the meaning of the federal
securities laws. 

 
 

ARTICLE VIII—INDEMNIFICATION    
    

        Optionor and each Member, severally and not jointly, agree to indemnify Kite Realty, its affiliates and their respective trustees, directors, officers, members,
partners, employees, agents, successors and assigns (the "Indemnitees") in respect of, and hold the Indemnitees harmless against, any and all liabilities (whether absolute or contingent, known or
unknown or accrued or unaccrued), damages, judgments, fines, fees, penalties, obligations, deficiencies, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys
and accountants and including, without limitation, amounts paid in settlement) ("Damages") actually incurred or suffered by any Indemnitee, and to reimburse each Indemnitee for such Damages which are
suffered or incurred by such Indemnitee or to which such Indemnitee may otherwise become subject, arising out of or resulting from the untruth, inaccuracy or breach of any representation or warrant of
Optionor or any of the Members contained in this Agreement, or any breach, non-fulfillment or failure to perform any agreement or covenant of Optionor or any of the Members contained in
this Agreement. 

10

 

 
 

ARTICLE IX—ASSIGNMENT; TRANSFER OF MEMBER INTERESTS    
    

        9.1    Kite Realty's Right to Assignment.    Kite Realty may not assign the Option or the right of first refusal
granted pursuant to Article IV hereby without Optionor's prior written consent, which consent may be conditioned, withheld or delayed in Optionor's sole and absolute discretion; provided, that
Kite Realty may assign the Option or the right of first refusal granted pursuant to Article IV hereby without Optionor's consent to (i) the REIT, (ii) any direct or indirect
controlled affiliate of the REIT or Kite Realty or (iii) any entity into which Kite Realty has merged or otherwise is the result of a business combination directly involving Kite Realty. 

        9.2    Optionor's Right to Assignment.    Optionor may not assign its interests in this Agreement, in whole or in
part, without Kite Realty's prior written consent, which consent may be conditioned, withheld or delayed in Kite Realty's sole and absolute discretion. 

        9.3    Transfer of Member Interests.    A Member may Transfer (as defined below) all or any portion of such Member's
Member Interest by complying with the provisions of this Section 9.3. If a proposed Transfer would result in a "Change of Control" (as defined below), then such Member shall provide written
notice of such Transfer to Kite Realty at least 30 days prior to the proposed Transfer (the "Transfer Notice"). For purposes of this Section 9.3: (a) "Transfer" shall include any
sale, assignment, gift, pledge, hypothecation, mortgage, exchange, or other disposition, other than a pledge, mortgage, or hypothecation of or granting of a security interest in, a Member Interest in
connection with the Project Indebtedness or any Entity Indebtedness; and (b) "Change of Control" shall mean (i) the Transfer of more than 50% of the voting ownership interests in
Optionor or (ii) if there is no voting ownership interest, the Transfer of more than 50% of the equity ownership interests in Optionor. Notwithstanding the foregoing, no purported Transfer of
all or any portion of a Member Interest (whether or not such Transfer would result in a Change of Control) shall be effective unless and until the transferee becomes a party to this Agreement and
bound by the terms and conditions of this Agreement as a "Member" (regardless of whether or not such transferee is admitted as a member of Optionor) by executing and delivering a counterpart signature
page to this Agreement to Kite Realty. Any purported transfer of a Member Interest in violation of this Section 9.3 shall be null and void. 

 
 

ARTICLE X—MISCELLANEOUS    
    

        10.1    Amendment; Waiver.    This Agreement may not be amended except by an instrument in writing signed by the
parties. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party against whom enforcement is sought. 

        10.2    Entire Agreement; Counterparts; Applicable Law.    This Agreement (a) constitutes the entire agreement
and supersedes all prior agreements and understandings, both written and oral, between 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, including, without limitation, validity, interpretation and effect, shall constitute but one and the same instrument and (c) shall be
governed in all respects, including, without limitation, validity, interpretation and effect, by the laws of the State of Indiana without giving effect to the conflict of law provisions thereof. 

        10.3    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 Kite Realty to effect such replacement. 

11

 

        10.4    Binding Effect.    This Agreement shall be binding upon, and shall be enforceable by and inure to the benefit
of, the parties and their respective permitted successors and permitted assigns. 

        10.5    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. 

        10.6    Notices.    Any notice or demand which must or may be given under this Agreement (including, without
limitation, the Exercise Notice, the OP Notice, the ROFR Notice, the Transfer Notice and the Option Termination Notice) or by law shall, except as otherwise provided, 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). 

        10.7    Recording.    Subject to applicable consents required under any financing related to the Property or the LLC
Interest, Kite Realty shall have the right to record a memorandum of this Agreement in the real property records of the county in which the Property is situated. If Kite Realty records such a
memorandum, Kite Realty covenants and agrees to record the appropriate notice of termination or cancellation upon the expiration or earlier termination of this Agreement. 

        10.8    Fees and Expenses.    Except to the extent contemplated in Section 3.1(f), Section 3.4(d),
Section 3.4(e) or Article VIII hereof, all fees and expenses incurred in connection with the execution, delivery and performance of this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such fees and expenses. 

        10.9    Reliance.    Each party to this Agreement acknowledges and agrees that it is not relying on tax advice or
other advice from the other party to this Agreement, and that it has or will consult with its own advisors. 

[Signature
page follows] 

12

  

        IN WITNESS WHEREOF, each of the parties hereto has executed and delivered this Agreement as of the date first set forth above. 

	Address:	 	 	 	 	 	 
	

 	
 	

OPTIONOR:
	

 	
 	

KITE 126TH STREET MEDICAL II, LLC
	

Kite 126th Street Medical II, LLC	
 	

By:	
 	

 	
 	

 
	c/o Kite Realty Group Trust	 	 	 	

	30 S. Meridian Street	 	Name:	 	 	 	 
	Suite 1100	 	 	 	

	Indianapolis, Indiana 46204	 	Title:	 	 	 	 
	Fax No.: (317) 577-5605	 	 	 	

	

 	
 	

KITE REALTY:
	

 	
 	

KITE REALTY GROUP, L.P.
	

Kite Realty Group, L.P.	
 	

By:	
 	

KITE REALTY GROUP TRUST, its
	c/o Kite Realty Group Trust	 	 	 	General Partner
	30 S. Meridian Street	 	 	 	 	 	 
	Suite 1100	 	 	 	By:	 	 
	Indianapolis, Indiana 46204	 	 	 	 	 	

	Fax No.: (317) 577-5605	 	 	 	Name:	 	 
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	

	

 	
 	

MEMBERS:
	

Alvin E. Kite, Jr.

c/o Kite Realty Group Trust

30 S. Meridian Street

Suite 1100

Indianapolis, Indiana 46204

Fax No.: (317) 577-5605	
 	

 Alvin E. Kite, Jr.
	

John A. Kite

c/o Kite Realty Group Trust

30 S. Meridian Street

Suite 1100

Indianapolis, Indiana 46204

Fax No.: (317) 577-5605	
 	

 John A. Kite
	 	 	 

13

 

	

Paul W. Kite

c/o Kite Realty Group Trust

30 S. Meridian Street

Suite 1100

Indianapolis, Indiana 46204

Fax No.: (317) 577-5605	
 	

 Paul W. Kite
	

Thomas K. McGowan

c/o Kite Realty Group Trust

30 S. Meridian Street

Suite 1100

Indianapolis, Indiana 46204

Fax No.: (317) 577-5605	
 	

 Thomas K. McGowan

14

 
 
 

EXHIBITS TO THE OPTION AGREEMENT*    
    

	Exhibit A	 	Description of Real Property
	
Exhibit B	
 	

Member Interests
	
Exhibit C	
 	

Closing Documentation (Partnership Interest)
	
Exhibit D	
 	

Closing Documentation (Member Interests)

	*
	The
registrant agrees to furnish, supplementally, a copy of omitted Exhibits A, C and D to the SEC upon request. 

15

 
 
 

EXHIBIT B
  
    MEMBER INTERESTS    
    

	Member
 
	 	Member Percentage Interests
	 
	Alvin E. Kite, Jr.	 	30	%
	John A. Kite	 	25	%
	Paul W. Kite	 	25	%
	Thomas K. McGowan	 	20	%

16

QuickLinks

FORM OF OPTION AGREEMENT (126th Street & Meridian II Medical Complex)

RECITALS

ARTICLE I—THE OPTION

ARTICLE II—Process for Exercise of the Option

ARTICLE III—ACQUISITION PROCESS

ARTICLE IV—RIGHT OF FIRST REFUSAL

ARTICLE V—ADDITIONAL AGREEMENTS AND COVENANTS

ARTICLE VI—TERMINATION

ARTICLE VII—REPRESENTATIONS, WARRANTIES AND COVENANTS

ARTICLE VIII—INDEMNIFICATION

ARTICLE IX—ASSIGNMENT; TRANSFER OF MEMBER INTERESTS

ARTICLE X—MISCELLANEOUS

EXHIBITS TO THE OPTION AGREEMENT

EXHIBIT B MEMBER INTERESTSQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.17  

 
 

FORM OF REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and entered into as of                , 2004
by and among Kite Realty Group Trust, a
Maryland real estate investment trust (the "Company"), Alvin E. Kite, Jr., John A. Kite, Paul W. Kite, Thomas K. McGowan, Daniel R. Sink, George F. McMannis, IV, Mark Jenkins, C. Kenneth Kite, David
Grieve and KMI Holdings, LLC. 

        WHEREAS,
the Company and Kite Realty Group, L.P., a Delaware limited partnership, of which the Company is the general partner ("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 have interests, (ii) the Company will acquire indirect interests in certain service companies currently owned by persons affiliated with the Company, 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,
as part of the Kite IPO Transactions, Kite Realty entered into a Contribution Agreement dated as of April 5, 2004 (the "April 5th Contribution Agreement"), with
Alvin E. Kite, Jr., John A. Kite, Paul W. Kite, Thomas K. McGowan, Daniel R. Sink, George F. McMannis, IV and Mark Jenkins (collectively, the "MCA Contributors"), pursuant to which, among other
things, in connection with the closing of the Kite IPO, the MCA Contributors will transfer their interests in certain entities that directly or indirectly own or lease real estate properties to Kite
Realty, Kite Realty will assume certain obligations and Kite Realty will issue the number of Class A units of limited partnership interest in Kite Realty (the "Units") to the MCA Contributors
as set forth on Schedule A hereto; 

        WHEREAS,
as part of the Kite IPO Transactions, Kite Realty entered into a Contribution Agreement dated as of April 1, 2004 with C. Kenneth Kite pursuant to which, among other
things, in connection with the closing of the Kite IPO, C. Kenneth Kite will transfer his interests in Centre Associates, L.P. to Kite Realty, Kite Realty will assume certain obligations and Kite
Realty will issue the number of Units to C. Kenneth Kite as set forth on Schedule A hereto; 

        WHEREAS,
as part of the Kite IPO Transactions, Kite Realty entered into a Contribution Agreement dated as of April 1, 2004 with David Grieve, pursuant to which, among other
things, in connection with the closing of the Kite IPO, David Grieve will transfer his interests in ACV San Antonio, LLC to Kite Realty, Kite Realty will assume certain obligations and Kite Realty
will issue the number of Units to David Grieve as set forth on Schedule A hereto; 

        WHEREAS,
pursuant to the terms of Section 8.6 and other related provisions of the Amended and Restated Agreement of Limited Partnership of Kite Realty Group, L.P. (such agreement,
as amended from time to time, the "Partnership Agreement"), commencing one year after the date of issuance, and subject to the various limitations contained in the Partnership Agreement and other
instruments being delivered in connection with the Kite IPO Transactions, the MCA Contributors, C. Kenneth Kite and David Grieve (each a "Contributor" and collectively, together with their respective
successors and assigns permitted under Section 7.3 hereof, the "Contributors") will be entitled to redeem their Units for cash, or at the option of Kite Realty, common shares of beneficial
interest, par value $0.01 per share, of the Company ("REIT Common Shares"); 

        WHEREAS,
as part of the Kite IPO Transactions, the Company entered into a Merger Agreement dated as of April 5, 2004 (the "KC Merger Agreement"), with Kite
Construction, Inc. ("Kite Construction"), and KRG Construction, LLC, an Indiana limited liability company of which the Company is the sole member ("KC Merger Sub"), pursuant to which, in
connection with the closing of the Kite IPO, Kite Construction will merge into KC Merger Sub, with KC Merger Sub being the surviving entity, and the common stock of Kite Construction will be converted
into REIT Common Shares in accordance with the terms of the KC Merger Agreement; 

 

        WHEREAS,
as part of the Kite IPO Transactions, the Company entered into a Merger Agreement dated as of April 5, 2004 (the "KD Merger Agreement"), with Kite Development Corporation
("Kite Development"), and KRG Development, LLC, an Indiana limited liability company of which the Company is the sole member ("KD Merger Sub"), pursuant to which, in connection with the closing of the
Kite IPO, Kite Development will merge into KD Merger Sub, with KD Merger Sub being the surviving entity, and the common stock of Kite Development will be converted into REIT Common Shares in
accordance with the terms of the KD Merger Agreement; 

        WHEREAS,
as part of the Kite IPO Transactions, the Company entered into a Merger Agreement dated as of April 5, 2004 (the "KMI Merger Agreement"; and together with the KC Merger
Agreement and the KD Merger Agreement, the "Service Company Merger Agreements"), with KMI Realty
Advisors, Inc. ("KMI"; and together with Kite Construction and Kite Development, the "Service Companies") and KRG Realty Advisors, LLC, an Indiana limited liability company of which the Company
is the sole member ("KMI Merger Sub"), pursuant to which, in connection with the closing of the Kite IPO, KMI will merge into KMI Merger Sub, with KMI Merger Sub being the surviving entity, and the
common stock of KMI will be converted into REIT Common Shares in accordance with the terms of the KMI Merger Agreement; 

        WHEREAS,
pursuant to the Service Company Merger Agreements, Alvin E. Kite, Jr., John A. Kite and Paul W. Kite, the sole shareholders of Kite Construction and Kite Development, and KMI
Holdings, LLC, the sole shareholder of KMI (each a "Service Company Shareholder" and collectively together with their respective successors and assignees permitted under Section 7.3 hereof, the
"Service Company Shareholders"), will receive the number of REIT Common Shares in exchange for their interests in the Service Companies (the "Service Company Exchange Shares") as set forth on
Schedule A; 

        WHEREAS,
pursuant to the terms of the April 5th Contribution Agreement, the Company entered into a Merger Agreement (the "Daytona Merger Agreement") with Kite
Daytona Management, Inc. ("Kite Daytona"), and KRG Daytona Management, LLC, an Indiana limited liability company of which the Company is the sole member ("Daytona Merger Sub"), pursuant to
which, in connection with the closing of the Kite IPO, Kite Daytona will merge into Daytona Merger Sub, with Daytona Merger Sub being the surviving entity, and the common stock of Kite Daytona will be
converted into REIT Common Shares in accordance with the terms of the Daytona Merger Agreement; 

        WHEREAS,
pursuant to the terms of the April 5th Contribution Agreement, the Company entered into a Merger Agreement (the "Washington Merger Agreement") with Kite
Washington Management, Inc. ("Kite Washington"), and KRG Washington Management, LLC, an Indiana limited liability company of which the Company is the sole member ("Washington Merger Sub"),
pursuant to which, in connection with the closing of the Kite IPO, Kite Washington will merge into Washington Merger Sub, with Washington Merger Sub being the surviving entity, and the common stock of
Kite Washington will be converted into REIT Common Shares in accordance with the terms of the Washington Merger Agreement; 

        WHEREAS,
pursuant to the terms of the April 5th Contribution Agreement, the Company entered into a Merger Agreement (the "Whitehall Merger Agreement"; and together
with the Daytona Merger Agreement and the Washington Merger Agreement, the "Subsidiary Corporation Merger Agreements") with Whitehall Pike, Inc. ("Whitehall Pike"; and together with Kite
Daytona and Kite Washington, the "Subsidiary Corporations"), and KRG Whitehall Pike, LLC, an Indiana limited liability company of which the Company is the sole member ("Whitehall Merger Sub"),
pursuant to which, in connection with the closing of the Kite IPO, Whitehall Pike will merge into Whitehall Merger Sub, with Whitehall Merger Sub being the surviving entity, and the common stock of
Whitehall will be converted into REIT Common Shares in accordance with the terms of the Whitehall Merger Agreement; 

2

 

        WHEREAS,
pursuant to the Merger Agreements, Alvin E. Kite, Jr., John A. Kite, Paul W. Kite and Thomas K. McGowan the sole shareholders of Kite Daytona, Kite Washington, and Whitehall
Pike (each a "Subsidiary Corporation Shareholder" and collectively together with their respective successors and assignees permitted under Section 7.3 hereof, the "Subsidiary Corporation
Shareholders"), will receive the number of REIT Common Shares in exchange for their interests in the Subsidiary Corporations (the "Subsidiary Corporation Exchange Shares"; and together with the
Service Company Exchange Shares, the "Exchange Shares") as set forth on Schedule A; 

        WHEREAS,
the Company has agreed to grant to the Contributors the Redemption Share Registration Rights (as defined in Section 1.1 hereof) and to grant to the Service Company
Shareholders and the Subsidiary Corporation Shareholders (collectively, the "Shareholders") the Exchange Share Registration Rights (as defined in Section 1.2 hereof). 

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

 
 

SECTION 1.    REGISTRATION RIGHTS  

        1.1    Redemption Share Registration Rights.    Subject to the various terms and conditions of the Partnership
Agreement and the limitations upon the redemption of the Units set forth in other instruments being delivered in connection with the Kite IPO Transactions, if any Contributor receives REIT Common
Shares upon redemption of Units held by such Contributor ("Redemption Shares"), then, unless the Redemption Shares are issued to the Contributor pursuant to an Issuer Registration Statement as
provided in Section 2 hereof, each Contributor shall be entitled to offer the Redemption Shares for resale pursuant to a shelf registration statement, subject to the terms and conditions set
forth in Section 3 hereof (the "Redemption Share Registration Rights"). 

        1.2    Exchange Share Registration Rights.    Subject to the limitations upon the ability of the Shareholders to sell
the Exchange Shares set forth in other instruments being delivered in connection with the Kite IPO Transactions, each Shareholder shall be entitled to offer the Exchange Shares for resale pursuant to
a shelf registration statement, subject to the terms and conditions set forth in Section 3 hereof (the "Exchange Share Registration Rights"). 

 
 

SECTION 2.    ISSUER REGISTRATION STATEMENT  

        2.1    Registration Procedure.    Subject to the provisos set forth in the following sentence, the Company shall use
commercially reasonable efforts, during the period beginning 15 days prior to the date the Contributors are first permitted to redeem the Units pursuant to the Partnership Agreement and ending
15 days thereafter, to cause to be filed with the Securities and Exchange Commission (the "Commission") a registration statement (an "Issuer Registration Statement") that complies as to form in
all material respects with applicable Commission rules providing for the registration of the Redemption Shares to be issued to the Contributors. The Company shall use commercially reasonable efforts
to cause the Issuer Registration Statement to be declared effective by the Commission as soon as practicable following the filing thereof; provided,
that the Company shall be entitled to postpone the filing, or the effectiveness, of the Issuer Registration Statement if (i) the Company is actively pursuing an underwritten primary offering of
equity securities, or (ii) the negotiation or consummation of a transaction by the Company or its subsidiaries is pending or an event has occurred, which negotiation, consummation or event
would require additional disclosure by the Company in the Issuer Registration Statement of material information which the Company has a bona fide
business purpose for keeping confidential and the non-disclosure of which in the Issuer Registration Statement would be expected, in the Company's reasonable determination, to cause the
Issuer Registration Statement to fail to comply 

3

 

with
applicable disclosure requirements (each such circumstance a "Suspension Event"); provided,  however, that the Company may not delay the filing, or the
effectiveness, of the Issuer Registration Statement for more than 60 days. The Company
agrees to use commercially reasonable efforts to keep such Issuer Registration Statement continuously effective until such time as the Contributors no longer own any Units. Anything contained herein
to the contrary notwithstanding, in the event that the Redemption Shares are issued by the Company to the Contributors pursuant to an Issuer Registration Statement, the Company shall be deemed to have
satisfied all of its registration obligations under this Agreement in respect of such Redemption Shares. 

        2.2    Obligations of the Company.    When the Redemption Shares are issued to the Contributors pursuant to an Issuer
Registration Statement as provided in Section 2.1 of this Agreement, subject to the provisos set forth in the second sentence of Section 2.1 hereof, the Company shall: 

        (a)   promptly
notify the Contributors: (i) when the Issuer Registration Statement, any pre-effective amendment or post-effective amendment to
the Issuer Registration Statement has been filed, and, with respect to the Issuer Registration Statement or any post-effective amendment, when the same has become effective, (ii) of
the issuance by the Commission of any stop order suspending the effectiveness of the Issuer Registration Statement or the initiation or threat of any proceedings for that purpose, and (iii) of
the receipt by the Company of
any notification with respect to the suspension of the qualification of any Redemption Shares for sale under the securities or "blue sky" laws of any jurisdiction or the initiation of any proceeding
for such purpose; 

        (b)   promptly
use commercially reasonable efforts to prevent the issuance of any order suspending the effectiveness of the Issuer Registration Statement, and, if any such
order suspending the effectiveness of the Issuer Registration Statement is issued, shall promptly use commercially reasonable efforts to obtain the withdrawal of such order at the earliest possible
moment; and 

        (c)   use
commercially reasonable efforts to cause all such Redemption Shares to be listed on the national securities exchange on which the REIT Common Shares are then listed,
if the listing of Redemption Shares is then permitted under the rules of such national securities exchange. 

 
 

SECTION 3.    DEMAND REGISTRATION RIGHTS  

        3.1    (a)    Redemption Share Registration Procedure.    Unless such Redemption Shares have been included
in the filing of an Issuer Registration Statement as provided in Section 2 hereof, then, subject to Section 3.1(d) and Section 3.2 hereof, each Contributor may deliver to the
Company, at any time after the last date on which an Issuer Registration Statement may be filed as provided in Section 2 hereof, a written notice (a "Registration Notice") informing the Company
of such Contributor's desire to have the Redemption Shares underlying such Contributor's Units registered for resale; provided,  however, that if the
Redemption Shares have been included in the Issuer Registration Statement and the Issuer Registration Statement has not been
declared effective by the Commission within 90 days after the original filing date or the Company is unable to keep such Issuer Registration Statement effective until such time as the
Contributors no longer own any Units, each Contributor shall be entitled to exercise the rights provided under this Section 3.1 with respect to the Redemption Shares owned by such Contributor.
Upon receipt of the Registration Notice, if the Company has not already caused the Redemption Shares to be included as part of an existing shelf registration statement and related prospectus that the
Company then has on file with, and which has been declared effective by, the Commission and which remains in effect and not subject to any stop order, injunction or other order or requirement of the
Commission (the "Shelf Registration Statement") (in which event the Company shall be deemed to have satisfied its registration obligation under this Section 3 with respect to the Redemption
Shares), then the Company will cause to be filed with the Commission as soon as 

4

 

reasonably
practicable after receiving the Registration Notice, but in no event more than 60 days following receipt of such notice, a new registration statement and related prospectus (the "New
Registration Statement") that complies as to form in all material respects with applicable Commission rules providing for the resale by such Contributor of the Redemption Shares owned by such
Contributor, and agrees (subject to Section 3.2 hereof) to use commercially reasonable efforts to cause the New Registration Statement to be declared effective by the Commission as soon as
practicable. 

        (b)   Exchange Share Registration Procedure.    Subject to Section 3.1(d) and Section 3.2 hereof, each
Shareholder may deliver to the Company, at any time after the date that is 270 days after the date of issuance of the Exchange Shares to the Shareholders, a Registration Notice informing the
Company of such Shareholder's desire to have the Exchange Shares registered for resale. Upon receipt of the Registration Notice, if the Company has not already caused the Exchange Shares to be
included as part of an existing Shelf Registration Statement (in which event the Company shall be deemed to have satisfied its registration obligation under this Section 3 with respect to the
Exchange Shares), then the Company will cause to be filed with the Commission as soon as reasonably practicable after receiving the Registration Notice, but in no event more than 60 days
following receipt of such notice, a New Registration Statement that complies as to form in all material respects with applicable Commission rules providing for the resale by such Shareholder of the
Exchange Shares owned by such Shareholder, and agrees (subject to Section 3.2 hereof) to use commercially reasonable efforts to cause the New Registration Statement to be declared effective by
the Commission as soon as practicable. (As used in this Agreement, (i) "Registration Statement" and "Prospectus" refer to a Shelf Registration Statement and related prospectus (including any
preliminary prospectus) or a New Registration Statement and related prospectus (including any preliminary prospectus), whichever is utilized by the Company to satisfy a Contributor's or Shareholder's
Redemption Share Registration Rights and/or Exchange Share Registration Rights, as the case may be, pursuant to this Section 3, including, in each case, any documents incorporated therein by
reference, (ii) "Registrable Securities" refer to the Redemption Shares and/or Exchange Shares to which a Contributor or Shareholder, as the case may be, is entitled to registration rights
under this Section 3, and (iii) "Holders" refers to the Contributors and/or the Shareholders, as the case may be,.) 

        Subject
to Section 3.2 hereof, the Company agrees to use commercially reasonable efforts to keep the Registration Statement continuously effective (including the preparation and
filing of any amendments and supplements necessary for that purpose) until the earlier of (i) the date on which all of the Registrable Securities covered by such Registration Statement and held
by the Holders thereof are eligible for immediate sale pursuant to Rule 144(k) (or any successor provision) or in a single transaction under Rule 144(e) (or any successor provision)
under the Securities Act of 1933, as amended (the "Securities Act"), or (ii) the date on which the Holders consummate the sale of all of the Registrable Securities. Notwithstanding the
foregoing, the Company may at any time, in its sole discretion and prior to receiving a Registration Notice from any Holder include all of any Holder's Registrable Securities or any portion thereof in
any Registration Statement (in which event the Company shall be deemed to have satisfied its registration obligation under this Section 3.1, with respect to the Registrable Securities so
included, so long as such Registration Statement remains effective and not the subject of any stop order, injunction or other order of the Commission). 

        (c)    Offers and Sales.    All offers and sales of Registrable Securities covered by a Registration Statement by the
Holder thereof shall be completed within the period during which such Registration Statement remains effective and not the subject of any stop order, injunction or other order of the Commission. Upon
notice that such Registration Statement is no longer effective no Holder will offer or sell the Registrable Securities covered by such Registration Statement. If directed in writing by the Company,
each Holder will return all undistributed copies of the related Prospectus in such Holder's possession upon the expiration of such period. 

5

 

        (d)    Limitations on Registration Rights.    For purposes of this Agreement, (i) each Contributor shall be
entitled to five exercises of the Redemption Share Registration Rights under Section 3.1(a), and (ii) each Shareholder shall be entitled to five exercises of the Exchange Share
Registration Rights under Sections 3.1(b). Notwithstanding the foregoing, if a Registration Statement has not been declared effective by the Commission within 120 days after the original filing
date or is suspended for more than 60 days at any one time, the Holders shall not be deemed to have exercised its Redemption Share Registration Rights and/or Exchange Share Registration Rights
under each of Section 3.1(a) and/or Section 3.1(b), as the case may be. For purposes of this Agreement, (x) the right of any Contributor to deliver a Registration Notice commences
upon the first date the Contributor is permitted to redeem the Units pursuant to the Partnership Agreement and other instruments being delivered in connection with the Contribution Agreement and
(y) the right of any Shareholder to deliver a Registration Notice commences on the date that is 270 days after the date of issuance of the Exchange Shares to the Shareholders.
Notwithstanding anything to the contrary, no Holder shall be entitled to exercise the Redemption Share Registration Rights or the Exchange Share Registration Rights (as applicable) if all of the
Registrable Securities held by such Holder (or issuable upon redemption of the Units held by such Holder) are eligible for immediate sale pursuant to Rule 144(k) (or any successor provision) or
in a single transaction pursuant to Rule 144(e) (or any successor provision) under the Securities Act. The Redemption Share Registration Rights and Exchange Share Registration Rights granted
pursuant to this Section 3 may not be exercised in connection with any underwritten public offering by the REIT or by any Holder without the prior written consent of the REIT. 

        3.2    Suspension of Offering.    Notwithstanding Section 3.1(a) and Section 3.1(b) hereof, the Company
shall be entitled to postpone the filing of a Registration Statement, and from time to time to require Holders not to sell under such Registration Statement or to suspend the effectiveness thereof,
upon the occurrence of a Suspension Event; provided, however, that the Company may not delay, suspend or
withdraw such Registration Statement for more than 60 days at any one time, or more than twice in any 12 month period. Upon receipt of any written notice from the Company (a) of
the happening of any Suspension Event during the period a Registration Statement is effective or (b) that as a result of a Suspension Event a Registration Statement or related Prospectus
contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made (in the case of the Prospectus) not misleading, each Holder agrees that (i) it will immediately discontinue offers and sales of the Registrable Securities under such
Registration Statement until the Holder receives copies of a supplemental or amended Prospectus (which the Company agrees to promptly prepare) that corrects the misstatement(s) or omission(s) referred
to above and receives notice that any post-effective amendment has become effective or unless otherwise notified by the Company that it may resume such offers and sales, and (ii) it
will maintain the confidentiality of any information included in the written notice delivered by the Company unless otherwise required by law or subpoena. If so directed by the Company, Holders will
deliver to the Company all copies of the Prospectus covering the Registrable Securities current at the time of receipt of such notice. 

        3.3    Qualification.    The Company shall file such documents as necessary to register or qualify the Registrable
Securities to be covered by a Registration Statement by the time such Registration Statement is declared effective by the Commission under all applicable state securities or "blue sky" laws of such
jurisdictions as any Holder may reasonably request in writing, and shall use commercially reasonable efforts to keep each such registration or qualification effective during the period such
Registration Statement is required to be kept effective pursuant to this Agreement or during the period offers or sales are being made by the Holders of Registrable Securities covered by such
Registration Statement after delivery of a Registration Notice to the Company, whichever is shorter, and to do any and all other similar acts and things which may be reasonably necessary or advisable
to enable the Holders to consummate the disposition of such Registrable Securities in each such jurisdiction; provided, however, that the Company shall
not be required to (i) qualify generally to do business in any 

6

 

jurisdiction
or to register as a broker or dealer in such jurisdiction where it would not otherwise be required to qualify but for this Agreement, (ii) take any action that would cause it to
become subject to any taxation in any jurisdiction where it would not otherwise be subject to such taxation or (iii) take any action that would subject it to the general service of process in
any jurisdiction where it is not then so subject. 

        3.4    Obligations of the Company.    When the Company is required to effect the registration of Registrable
Securities under the Securities Act pursuant to Section 3.1 of this Agreement, subject to Section 3.2 hereof, the Company shall: 

        (a)   prepare
and file with the Commission such amendments and supplements to the Registration Statement and the Prospectus used in connection therewith as may be necessary
(i) to keep such Registration Statement effective and (ii) to comply with the provisions of the Securities Act with respect to the disposition of the Registrable Securities covered by
such Registration Statement, in each case for such time as is contemplated in Section 3.1(a) or Section 3.1(b) (as the case may be) above; 

        (b)   furnish,
without charge, to the Holders such number of copies of the Registration Statement, each amendment and supplement thereto (in each case including all exhibits),
and the Prospectus included in such Registration Statement (including each preliminary Prospectus) in conformity with the requirements of the Securities Act as the Holders may reasonably request in
order to facilitate the public sale or other disposition of the Registrable Securities covered by such Registration Statement owned by the Holders; 

        (c)   promptly
notify the Holders: (i) when the Registration Statement, any pre-effective amendment, the Prospectus or any prospectus supplement related
thereto or post-effective amendment to the Registration Statement has been filed, and, with respect to the Registration Statement or any post-effective amendment, when the same
has become effective, (ii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation or threat of any proceedings for that
purpose, and (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or "blue
sky" laws of any jurisdiction or the initiation of any proceeding for such purpose; 

        (d)   promptly
use commercially reasonable efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement, and, if any such order
suspending the effectiveness of a Registration Statement is issued, shall promptly use commercially reasonable efforts to obtain the withdrawal of such order at the earliest possible moment; 

        (e)   if
the Registrable Securities are of a class of securities that is listed on a national securities exchange, file copies of any Prospectus with such exchange in
compliance with Rule 153 under the Securities Act so that the Holders shall benefit from the prospectus delivery procedures described therein; 

        (f)    following
receipt of a Registration Notice and thereafter until the sooner of completion, abandonment or termination of the offering or sale contemplated thereby and the
expiration of the period during which the Company is required to maintain the effectiveness of the related Registration Statement as set forth in Section 3.1(a) or Section 3.1(b) (as the
case may be) above, promptly notify the Holders: (i) of the existence of any fact of which the Company is aware or the happening of any event which has resulted in (A) the Registration
Statement, as then in effect, containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any statements therein not
misleading or (B) the Prospectus included in such Registration Statement containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or
necessary to make any 

7

 

statements
therein, in the light of the circumstances under which they were made, not misleading, and (ii) of the Company's reasonable determination that a post-effective amendment
to the Registration Statement would be appropriate or that there exist circumstances not yet disclosed to the public which make further sales under such Registration Statement inadvisable pending such
disclosure and post-effective amendment; and, if the notification relates to any event described in either of the clauses (i) or (ii) of this Section 3.4(f), subject
to Section 3.2 above, at the request of the Holders, the Company shall prepare and furnish to the Holders a reasonable number of copies of a supplement or post-effective amendment
to such Registration Statement or related Prospectus or any document incorporated therein by reference and file any other required document so that (1) such Registration Statement shall not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (2) as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

        (g)   use
commercially reasonable efforts to cause all such Registrable Securities to be listed on the national securities exchange on which the REIT Common Shares are then
listed, if the listing of Registrable Securities is then permitted under the rules of such national securities exchange; and 

        (h)   if
requested by any Holder participating in the offering of Registrable Securities, incorporate in a prospectus supplement or post-effective amendment such
information concerning the Holder or the intended method of distribution as the Holder reasonably requests to be included therein and is reasonably necessary to permit the sale of the Registrable
Securities pursuant to the Registration Statement, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor
and any other material terms of the offering of the Registrable Securities to be sold in such offering; provided, however, that the Company shall not be
obligated to include in any such prospectus supplement or post-effective amendment any requested information that is not required by the rules of the Commission and is unreasonable in
scope compared with the Company's most recent prospectus or prospectus supplement used in connection with a primary or secondary offering of equity securities by the Company. 

        3.5    Obligations of the Holder.    In connection with any Registration Statement utilized by the Company to satisfy
the Redemption Share Registration Rights and/or Exchange Share Registration Rights pursuant to this Section 3, each Holder agrees to cooperate with the Company in connection with the
preparation of the Registration Statement, and each Holder agrees that it will (i) respond within 20 Business Days to any written request by the Company to provide or verify information
regarding the Holder or the Holder's Registrable Securities (including the proposed manner of sale) that may be required to be included in such Registration Statement pursuant to the rules and
regulations of the Commission, and (ii) provide in a timely manner information regarding the proposed distribution by the Holder of the Registrable Securities and such other information as may
be reasonably requested by the Company from time to time in connection with the preparation of and for inclusion in the Registration Statement and related Prospectus. As used in this Agreement, a
"Business Day" is any Monday, Tuesday, Wednesday, Thursday or Friday other than a day on which banks and other financial institutions are authorized or required to be closed for business in the State
of New York. 

8

 
 
 

SECTION 4.    INDEMNIFICATION; CONTRIBUTION  

        4.1    Indemnification by the Company.    The Company agrees to indemnify and hold harmless each Holder and each
person, if any, who controls any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
any of their partners, members, officers, directors, employees or representatives, as follows: 

	(i)
	against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement (or any amendment thereto) pursuant to which the Registrable Securities were registered under the Securities Act, including all
documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading
or arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto), including all documents
incorporated therein by reference, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading;

	(ii)
	against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged
untrue statement or omission, if such settlement is effected with the written consent of the Company; and

	(iii)
	against
any and all expense whatsoever, as incurred (including reasonable fees and disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, in each case whether or not a party, or any claim whatsoever based upon
any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above; 

provided, however, that the indemnity provided pursuant to this Section 4.1 does not apply to any Holder with respect to any loss, liability,
claim, damage, judgment or expense to the extent arising out of (A) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by such Holder expressly for use in the Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto), or
(B) any Holder's failure to deliver an amended or supplemental Prospectus furnished to the Holder by the Company, if such loss, liability, claim, damage, judgment or expense would not have
arisen had such delivery occurred. 

        4.2    Indemnification by Holder.    Each Holder (and each permitted assignee of such Holder, on a several basis)
severally and not jointly agrees to indemnify and hold harmless the Company, and each of its trustees and officers (including each trustee and officer of the Company who signed a Registration
Statement), and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, as follows: 

	(i)
	against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement (or any amendment thereto) pursuant to which the Registrable Securities of such Holder were registered under the Securities Act,
including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements 

9

 

therein
not misleading or arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto),
including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; 

	(ii)
	against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged
untrue statement or omission, if such settlement is effected with the written consent of the Holder; and

	(iii)
	against
any and all expense whatsoever, as incurred (including reasonable fees and disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, in each case whether or not a party, or any claim whatsoever based upon
any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above; 

provided, however, that the indemnity provided pursuant to this Section 4.2 shall only apply with respect to any loss, liability, claim, damage,
judgment or expense to the extent arising out of (A) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in the Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto) or (B) any Holder's
failure to deliver an amended or supplemental Prospectus furnished to the Holder by the Company, if such loss, liability, claim, damage or expense would not have arisen had such delivery occurred.
Notwithstanding the provisions of this Section 4.2, a Holder and any permitted assignee shall not be required to indemnify the Company, its officers, trustees or control persons with respect to
any amount in excess of the amount of the total proceeds to the Holder or such permitted assignee, as the case may be, from sales of the Registrable Securities of the Holder under the Registration
Statement that is the subject of the indemnification claim. 

        4.3    Conduct of Indemnification Proceedings.    An indemnified party hereunder shall give reasonably prompt notice
to the indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify the indemnifying party (i) shall not
relieve it from any liability which it may have under the indemnity agreement provided in Section 4.1 or 4.2 above, unless and only to the extent it did not otherwise learn of such action and
the lack of notice by the indemnified party results in the forfeiture by the indemnifying party of substantial rights and defenses, and (ii) shall not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the indemnification obligation provided under Section 4.1 or 4.2 above. If the indemnifying party so elects within a reasonable
time after receipt of such notice, the indemnifying party may assume the defense of such action or proceeding at such indemnifying party's own expense with counsel chosen by the indemnifying party and
approved by the indemnified party, which approval shall not be unreasonably withheld; provided, however, that the indemnifying party will not settle,
compromise or consent to the entry of any judgment with respect to any such action or proceeding without the written consent of the indemnified party unless such settlement, compromise or consent
secures the unconditional release of the indemnified party; and provided further, that, if the indemnified party reasonably determines that a conflict
of interest exists where it is advisable for the indemnified party to be represented by separate counsel or that, upon advice of counsel, there may be legal defenses available to it which are
different from or in addition to those available to the indemnifying party, then the indemnifying party shall not be entitled to assume such defense and the indemnified party shall be entitled to
separate counsel at the indemnifying party's expense. If the 

10

 

indemnifying
party is not entitled to assume the defense of such action or proceeding as a result of the second proviso to the preceding sentence, the indemnifying party's counsel shall be entitled to
conduct the indemnifying party's defense and counsel for the indemnified party shall be entitled to conduct the defense of the indemnified party, it being understood that both such counsel will
cooperate with each other, to the extent feasible in light of the conflict of interest or different available legal defenses, to conduct the defense of such action or proceeding as efficiently as
possible. If the indemnifying party is not so entitled to assume the defense of such action or does not assume such defense, after having received the notice referred to in the first sentence of this
paragraph, the indemnifying party will pay the reasonable fees and expenses of counsel for the indemnified party. In such event, however, the indemnifying party will not be liable for any settlement
effected without the written consent of the indemnifying party. If an indemnifying party is entitled to assume, and assumes, the defense of such action or proceeding in accordance with this paragraph,
the indemnifying party shall not be liable for any fees and expenses of counsel for the indemnified party incurred thereafter in connection with such action or proceeding. 

        4.4    (a)    Contribution.    In order to provide for just and equitable contribution in circumstances in
which the indemnity agreement provided for in Sections 4.1 and 4.2 above is for any reason held to be unenforceable by the indemnified party although applicable in accordance with its terms, the
Company and the relevant Holder shall contribute to the aggregate losses, liabilities, claims, damages and expenses of the nature contemplated by such indemnity agreement incurred by the Company and
the Holder, in such proportion as is appropriate to reflect the relative fault of the Company, on the one hand and the Holder, on the other hand, in connection with the statements or omissions which
resulted in such losses, claims, damages, liabilities, or expenses. The relative fault of the indemnifying party and indemnified party shall be determined by reference to, among other things, whether
the action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information
supplied by, the
indemnifying party or the indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 

        (b)   The
parties hereto agree that it would not be just or equitable if contribution pursuant to this Section 4.4 were determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 4.4, a Holder shall not be required to contribute any amount in excess of the amount of the total proceeds to such Holder from sales of the
Registrable Securities of such Holder under the Registration Statement that is the subject of the indemnification claim. 

        (c)   Notwithstanding
the foregoing, no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4.4, each person, if any, who controls a Holder within the meaning of
Section 15 of the Securities Act shall have the same rights to contribution as the Holder, and each trustee of the Company, each officer of the Company who signed a Registration Statement and
each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act shall have the same rights to contribution as the Company. 

 
 

SECTION 5.    EXPENSES  

        The
Company shall pay all expenses incident to the performance by the Company of its registration obligations under Sections 2 and 3 above, including (i) all stock exchange,
Commission and state securities registration, listing and filing fees, (ii) all expenses incurred in connection with the preparation, printing and distribution of any Issuer Registration
Statement or Registration Statement and Prospectus, (iii) fees and disbursements of counsel for the Company and of the independent public accountants of the Company, and (iv) reasonable
fees and disbursements of counsel to the Holder in 

11

 

connection
with the Holder's exercise of its rights hereunder. Each Holder shall be responsible for the payment of any brokerage and sales commissions and any transfer taxes relating to the sale or
disposition of the Registrable Securities by such Holder pursuant to this Agreement. 

 
 

SECTION 6.    RULE 144 COMPLIANCE  

        The
Company covenants that it will use its best efforts to timely file the reports required to be filed by the Company under the Securities Act and the Exchange Act so as to enable the
Holders to sell the
Registrable Securities pursuant to Rule 144 under the Securities Act. In connection with any sale, transfer or other disposition by a Holder of any Registrable Securities pursuant to
Rule 144 under the Securities Act, the Company shall cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be
sold and not bearing any Securities Act legend, and enable certificates for such Registrable Securities to be for such number of shares and registered in such names as such Holder may reasonably
request at least five Business Days prior to any sale of Registrable Securities hereunder. 

 
 

SECTION 7.    MISCELLANEOUS  

        7.1    Integration; Amendment.    This Agreement constitutes the entire agreement among 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. 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. 

        7.2    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 any of the parties hereto of a breach or a default under any of
the provisions of this Agreement, nor the failure of any 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. 

        7.3    Assignment; Successors and Assigns.    Any Contributor may assign its rights and obligations under this
Agreement without the prior written consent of the Company in connection with a transfer of some or all of such Contributor's REIT Common Shares or Units in accordance with the terms of the
Partnership Agreement (including the Contributor's partner schedule) if the transferee agrees in writing to be bound by all of the provisions hereof and the Contributor provides written notice to the
Company within 10 days of the effectiveness of such assignment. Any Shareholder may assign its rights and obligations under this Agreement without the prior written consent of the Company in
connection with the transfer of some or all of such Shareholder's REIT Common Shares if the transferee agrees in writing to be bound by all of the provisions hereof and the Shareholder provides
written notice to the Company within 10 days of the effectiveness of such assignment. This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their
respective heirs, executors, personal and legal representatives, successors and permitted assigns, including, without limitation, any successor of the Company by merger, acquisition, reorganization,
recapitalization or otherwise. 

        7.4    Notices.    All notices called for under this Agreement shall be in writing and shall be deemed given upon
receipt if delivered personally or by facsimile transmission and followed promptly by mail, or mailed by registered or certified mail (return receipt requested), postage prepaid, or overnight delivery
service, to the parties at the addresses set forth opposite their signatures below, or to any other address or addressee as any party entitled to receive notice under this Agreement shall designate,
from time to time, to others in the manner provided in this Section 7.4 for the service of notices; provided,  

12

 

 however, that notices of a change of address shall be effective only upon receipt thereof. Any notice delivered to the party hereto to whom it is addressed shall be deemed to
have been given and received on the day it was received; provided, however, that if such day is not a Business Day, then the notice shall be deemed to
have been given and received on the Business Day next following such day and if any party rejects delivery of any notice attempted to be given hereunder, delivery shall be deemed given on the date of
such rejection. Any notice sent by facsimile transmission shall be deemed to have been given and received on the Business Day next following the transmission. 

        7.5    Specific Performance.    The parties hereto acknowledge that the obligations undertaken by them hereunder are
unique and that there would be no adequate remedy at law if any party fails to perform any of its obligations hereunder, and accordingly agree that each party, in addition to any other remedy to which
it may be entitled at law or in equity, shall be entitled to (i) compel specific performance of the obligations, covenants and agreements of any other party under this Agreement in accordance
with the terms and conditions of this Agreement and (ii) obtain preliminary injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement in
any court of the United States or any State thereof having jurisdiction. 

        7.6    Governing Law.    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 Maryland, but not including the choice of law rules thereof. 

        7.7    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. 

        7.8    Pronouns.    All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural, as the identity of the person or entity may require. 

        7.9    Execution in Counterparts.    To facilitate execution, this Agreement may be executed and delivered 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. It shall not be necessary in any proof of this Agreement to produce or
account for
more than a number of counterparts containing the respective signatures of or on behalf of all of the parties. 

        7.10    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. 

[Signatures
on following page] 

13

 

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

	Address:	 	 
	 	 	COMPANY:
	 	 	 
	Kite Realty Group Trust	 	KITE REALTY GROUP TRUST
	30 S. Meridian Street	 	 
	Suite 1100	 	By: ______________________________________
	Indianapolis, Indiana 46204	 	Name: ____________________________________
	Fax No.: (317) 577-5605	 	Title: _____________________________________

	

 	
 	

HOLDERS:
	

Alvin E. Kite, Jr.	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	Alvin E. Kite, Jr.
	Fax No.: (317) 577-5605	 	 
	

John A. Kite	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	John A. Kite
	Fax No.: (317) 577-5605	 	 
	

Paul W. Kite	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	Paul W. Kite
	Fax No.: (317) 577-5605	 	 

14

 

	Thomas K. McGowan	 	 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	Thomas K. McGowan
	Fax No.: (317) 577-5605	 	 
	

Daniel R. Sink	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	Daniel R. Sink
	Fax No.: (317) 577-5605	 	 
	

George F. McMannis, IV	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	George F. McMannis, IV
	Fax No.: (317) 577-5605	 	 
	

Mark Jenkins	
 	

 
	30 S. Meridian Street	 	 
	Suite 1100	 	

	Indianapolis, Indiana 46204	 	Mark Jenkins
	Fax No.: (317) 577-5605	 	 
	

C. Kenneth Kite	
 	

 
	
	 	 
	
	 	

	
	 	C. Kenneth Kite
	Fax No.: _______________________________	 	 
	

David Grieve	
 	

 
	
	 	 
	
	 	

	
	 	David Grieve
	Fax No.: _______________________________	 	 
	

KMI Holdings, LLC	
 	

 
	c/o Alvin E. Kite, Jr.	 	KMI Holdings, LLC
	30 S. Meridian Street	 	 
	Suite 1100	 	By: ______________________________________
	Indianapolis, Indiana 46204	 	Name: ____________________________________
	Fax No.: (317) 577-5605	 	Title: _____________________________________

15

 
 
 

Schedule A    
    

	Contributor
	 	Units

	

Alvin E. Kite, Jr.	
 	

 
	

John A. Kite	
 	

 
	

Paul W. Kite	
 	

 
	

Thomas K. McGowan	
 	

 
	

Daniel R. Sink	
 	

 
	

George F. McMannis, IV	
 	

 
	

Mark Jenkins	
 	

 
	

C. Kenneth Kite	
 	

 
	

David Grieve	
 	

 

	

Shareholder
	
 	

REIT Common Shares

	

Alvin E. Kite, Jr.	
 	

 
	

John A. Kite	
 	

 
	

Paul W. Kite	
 	

 
	

Thomas K. McGowan	
 	

 
	

KMI Holdings, LLC	
 	

 

16

QuickLinks

FORM OF REGISTRATION RIGHTS AGREEMENT

SECTION 1. REGISTRATION RIGHTS

SECTION 2. ISSUER REGISTRATION STATEMENT

SECTION 3. DEMAND REGISTRATION RIGHTS

SECTION 4. INDEMNIFICATION; CONTRIBUTION

SECTION 5. EXPENSES

SECTION 6. RULE 144 COMPLIANCE

SECTION 7. MISCELLANEOUS

Schedule A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]