Document:

EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

     THIS  EMPLOYMENT AGREEMENT (this "Agreement") is made and entered as of May
30,  2002 by and among IRT Property Company, a Georgia corporation (hereinafter,
the "Company"), and James G. Levy (hereinafter, "Executive"), to be effective as
of  the  Effective  Date,  as  defined  in  Section  1.

                                   BACKGROUND

     Executive  currently  serves as the Chief Financial Officer of the Company.
No  formal employment agreement governs Executive's employment relationship with
the  Company,  but  Executive and the Company are parties to a Change in Control
Employment  Agreement,  dated  as  of  August  1,  1999,  which  would become an
effective employment agreement upon the occurrence of a change in control of the
Company  (the  "Prior Agreement").  From and after the Effective Date, the Prior
Agreement  will  be  superseded in its entirety by this Agreement, and the Prior
Agreement  shall  have  no  further  force  and  effect.

     The Company desires to retain Executive as the Executive Vice President and
Chief  Financial  Officer  of  the Company, in accordance with the terms of this
Agreement.  Executive  is  willing to serve as such in accordance with the terms
and  conditions  of  this  Agreement.

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

     1.  Effective  Date.  The  effective date of this Agreement is May 30, 2002
..

     2.     Employment.  Executive  is  hereby employed on the Effective Date as
an  Executive  Vice President and as the Chief Financial Officer of the Company.
Executive  hereby  accepts such employment on the terms and conditions set forth
in  this  Agreement.  In  his  capacity  as  Executive  Vice President and Chief
Financial  Officer of the Company, Executive shall exercise such authority, have
such  responsibilities,  status, offices, titles and reporting relationships and
perform  such  duties  as  are  commensurate  with  the office of executive vice
president  and chief financial officer of a public real estate investment trust,
and  Executive  will  report  directly  to  the  Chief  Executive Officer of the
Company.  Executive's  services  shall  be  performed at the Company's executive
offices  in  Atlanta,  Georgia.

     3.     Employment  Period.  Unless  earlier terminated herein in accordance
with  Section 6 hereof, Executive's employment shall be for a two year term (the
"Employment  Period"),  beginning on the Effective Date.  Beginning on the first
anniversary  of  the  Effective  Date  and on each subsequent anniversary of the
Effective Date, the Employment Period shall, without further action by Executive
or  the  Company,  be  extended  automatically by an additional one-year period;
provided,  however,  that either party may, by written notice to the other given
not  less  than  30  days  prior  to  the  anniversary  renewal  date, cause the
Employment  Period  to  cease  to  extend  automatically.  Upon such notice, the
Employment  Period shall terminate upon the expiration of the then-current term,
including  any  prior  extensions.

     4.     Extent  of Service.  During the Employment Period, and excluding any
periods  of  vacation  and  sick leave to which Executive is entitled, Executive
agrees  to  devote reasonable attention and time during normal business hours to
the  business  and  affairs  of  the  Company  and,  to  the extent necessary to
discharge  the  responsibilities  assigned  to  Executive  hereunder,  to  use
Executive's  reasonable  best efforts to perform faithfully and efficiently such
responsibilities.  During  the  Employment Period it shall not be a violation of
this  Agreement  for  Executive  to  (x) serve on corporate, civic or charitable
boards  or  committees,  (y)  engage  in  other  business activities that do not
represent  a  conflict of interest with his duties to the Company, or (z) manage
personal  investments, so long as such activities do not significantly interfere
with  the  performance  of  Executive's  responsibilities  as an employee of the
Company  in  accordance  with  this  Agreement.  It  is expressly understood and
agreed  that  to  the  extent  that  any  such activities have been conducted by
Executive  prior to the Effective Date, the continued conduct of such activities
(or the conduct of activities similar in nature and scope thereto) subsequent to
the  Effective  Date  shall  not  thereafter  be  deemed  to  interfere with the
performance  of  Executive's  responsibilities  to  the  Company.

     5.     Compensation  and  Benefits.

            (a)     Base Salary.  The Company shall  pay  Executive an  annual
salary  (the  "Annual Base Salary") in periodic equal installments in accordance
with the normal payroll practices of the Company. The initial Annual Base Salary
as  of  the  Effective Date shall be $175,000. During the Employment Period, the
Annual  Base  Salary  shall  be reviewed not later than 12 months after the last
salary  increase awarded to Executive prior to the Effective Date and thereafter
shall  be  reviewed  at least annually. Any increase in Annual Base Salary shall
not  serve  to  limit or reduce any other obligation of the Company to Executive
under  this  Agreement. The Annual Base Salary shall not be reduced and the term
Annual  Base  Salary  as used in this Agreement shall refer to the latest Annual
Base  Salary  as  so  increased.

            (b)     Incentive,  Savings  and  Retirement  Plans.  During  the
Employment  Period, Executive shall be entitled to participate in all incentive,
savings  and  retirement  plans,  practices,  policies  and  programs applicable
generally  to  executive officers of the Company reporting directly to the Chief
Executive  Officer ("Peer Executives"), and on no less favorable bases than such
Peer  Executives.  Nothing  in this Agreement shall or shall be deemed to in any
way  affect  Executive's  rights  and  benefits  thereunder, except as expressly
provided  herein.  Without  limiting  the  foregoing, the following shall apply:

                    (i)  During  the  Employment Period, Executive shall be paid
such annual and/or other incentive bonuses as may be determined by the Company's
Board  of Directors (the "Board") in its discretion, which may be in addition to
any  bonuses  generally  granted  to  Peer  Executives.

                    (ii)  During  the  Employment  Period,  Executive  will  be
granted,under  the Company's stock option plan, stock options to acquire Company
$1.00  par  value common stock ("Common Stock") in amounts and having terms that
are  no less favorable in amount or terms than those granted to Peer Executives.

                    (iii)  On the Effective  Date,  Executive  shall  be granted
40,000 restricted shares (the "Restricted Shares") of "Restricted Stock Award").
Such  Restricted  Shares  will  vest  in installments of 10% (4,000 shares), 20%
(8,000  shares),  30% (12,000 shares), and 40% (16,000 shares), respectively, on
the  Effective  Date  and  the  first three anniversaries of the Effective Date,
provided  as  to each installment that Executive continues to be employed by the
Company  on  such  anniversary date. Notwithstanding the foregoing, all unvested
Restricted  Shares  of the Restricted Stock Award will immediately vest upon (x)
Executive's  death  or  Disability (as defined in Section 6(a)), (y) Executive's
termination by the Company other than for Cause (as defined in Section 6(b)), or
(z)  Executive's  resignation  for  Good  Reason  (as  defined in Section 6(c)).
Executive and the Company shall enter into a mutually agreeable Restricted Stock
Agreement  evidencing  the  Restricted  Stock  Award.

            (c)     Welfare  Benefit  Plans.  During  the  Employment  Period,
Executive  and  Executive's  eligible  dependents  shall  be  eligible  for
participation  in,  and  shall  receive  all benefits under, the welfare benefit
plans,  practices,  policies  and  programs  (including  medical,  prescription,
dental,  disability,  employee  life,  group  life,  accidental death and travel
accident insurance plans and programs) provided by the Company ("Welfare Plans")
to  the  extent  applicable  generally  to  Peer  Executives.  Nothing  in  this
Agreement  shall  or shall be deemed to in any way affect Executive's rights and
benefits  thereunder  except  as  expressly  provided  herein.

            (d)     Expenses.  During  the Employment  Period, and in accordance
with  the  policies,  practices  and  procedures  of  the  Company to the extent
applicable  generally  to  Peer  Executives,  Executive  shall be entitled to an
expense  allowance  for  or  to  receive prompt reimbursement for all reasonable
travel,  entertainment and other expenses reasonably and necessarily incurred by
Executive  in  connection  with the Company's business.  Executive shall furnish
such  documentation  with  respect  to reimbursement to be paid hereunder as the
Company  shall  reasonably  request.

            (e)     Fringe  Benefits.  During the Employment  Period,  Executive
shall  be  entitled  to fringe benefits in accordance with the plans, practices,
programs  and  policies  of  the  Company in effect for Peer Executives.  In all
events,  Executive shall be entitled to fringe benefits at least as favorable as
those  he  was  receiving  immediately  prior  to  the  Effective Date.  Without
limiting  the  foregoing:

                    (i)  During the Employment Period, Executive shall be
entitled  to  receive  an  automobile allowance of not less than $700 per month.

                    (ii)  Executive will be entitled to a vacation in accordance
with the Company's vacation schedule in effect at the time the vacation is to be
taken,  which schedule will not be less favorable to Executive than the vacation
schedule  for Peer Executives and shall in no event be less four weeks per year.
During  such  vacation,  Executive  shall  be  entitled  to  receive his regular
compensation  pursuant  to  and  in  accordance  with  this  Agreement.

     6.     Termination  of  Employment.

            (a)     Death, Retirement or Disability.  Executive's employment
shall  terminate  automatically  upon Executive's death or Retirement during the
Employment  Period.  For  purposes  of  this  Agreement, "Retirement" shall mean
normal  retirement  as defined in the Company's then-current retirement plan, or
if  there  is  no  such  retirement  plan,  "Retirement"  shall  mean  voluntary
termination  after  age  65  with  10  or  more years of service. If the Company
determines  in  good  faith that the Disability of Executive has occurred during
the  Employment  Period  (pursuant  to  the  definition  of Disability set forth
below),  it  may  give to Executive written notice of its intention to terminate
Executive's  employment.  In such event, Executive's employment with the Company
shall  terminate  effective on the 30th day after receipt of such written notice
by  Executive  (the  "Disability  Effective Date"), provided that, within the 30
days  after  such  receipt,  Executive  shall  not  have  returned  to full-time
performance  of Executive's duties. For purposes of this Agreement, "Disability"
shall  mean the absence of Executive from Executive's duties with the Company on
a  full-time  basis  for  180  consecutive days as a result of incapacity due to
mental  or  physical  illness which is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to Executive or
Executive's  legal  representative.

            (b)     Termination  by  the  Company.  The  Company  may  terminate
Executive's  employment during the Employment Period with or without Cause.  For
purposes  of  this  Agreement,  "Cause"  means:

                    (i)  the  willful  and  continued  failure of  Executive to
perform  substantially  Executive's duties with the Company (other than any such
failure  resulting  from  incapacity due to physical or mental illness), after a
written  demand  for  substantial  performance  is delivered to Executive by the
Company's Board or the Chief Executive Officer of the Company which specifically
identifies  the  manner  in  which the Board or Chief Executive Officer believes
that  Executive  has  not  substantially  performed  Executive's  duties,  or

                    (ii)  the  willful engaging  by Executive in illegal conduct
or  gross  misconduct  which  is  materially  and  demonstrably injurious to the
Company.

     For purposes of this Section 6(b), no act or failure to act, on the part of
Executive,  shall  be  considered  "willful" unless it is done, or omitted to be
done,  by Executive in bad faith or without a reasonable belief that Executive's
action  or  omission  was  in  the  best  interests of the Company.  Any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board or upon the instructions of the Chief Executive Officer or a senior
officer  of  the  Company  or  based upon the advice of the Company's counsel or
other professional advisers for the Company shall be conclusively presumed to be
done,  or  omitted  to  be  done,  by  Executive  in  good faith and in the best
interests of the Company.  The cessation of employment of Executive shall not be
deemed  to  be  for  Cause  unless  and until there shall have been delivered to
Executive  a  copy  of  a resolution duly adopted by the affirmative vote of not
less  than  three-quarters of the entire membership of the Board at a meeting of
the  Board called and held for such purpose (after reasonable notice is provided
to  Executive  and  Executive is given an opportunity, together with counsel for
the  Executive,  to  be heard before the Board), finding that, in the good faith
opinion  of  the  Board,  Executive  is  guilty  of  the  conduct  described  in
subparagraph  (i)  or  (ii)  above,  and  specifying  the particulars thereof in
detail.

            (c)     Termination  by  Executive.  Executive's  employment  may be
terminated  by  Executive  for  Good  Reason or no reason.  For purposes of this
Agreement,  "Good  Reason"  shall  mean:

                    (i)  the  assignment  or proposed assignment to Executive of
any  duties  inconsistent  in  any  respect with Executive's position (including
status,  offices,  titles  and  reporting  relationships),  authority, duties or
responsibilities  as  contemplated  by Section 2 of this Agreement, or any other
action by the Company which results in a diminution in such position, authority,
duties  or  responsibilities,  excluding  for  this  purpose  an  isolated,
insubstantial  and  inadvertent  action  not  taken  in  bad  faith and which is
remedied  by  the  Company  promptly  after  receipt  of notice thereof given by
Executive;

                    (ii)  any failure by the Company to  comply  with any of the
provisions of Section 5 of this Agreement, other than an isolated, insubstantial
and  inadvertent failure not occurring in bad faith and which is remedied by the
Company  promptly  after  receipt  of  notice  thereof  given  by  Executive;

                    (iii)  the  Company  requiring Executive to be based at any
office  or  location  other  than as provided in Section 2 hereof or the Company
requiring  Executive  to  travel  on Company business to a substantially greater
extent  than  required  immediately  prior  to  the  Effective  Date;

                    (iv)  any  purported  termination  by  the Company of
Executive's  employment otherwise than as expressly permitted by this Agreement;

                    (v)  any failure by the Company  to comply  with and satisfy
Section  13(c)  of  this  Agreement;  or

                    (vi)  any  termination  by  Executive for any  reason or no
reason during the period beginning on the 90th day following a Change in Control
of  the  Company and ending on the last day of the 13th month following a Change
in  Control  of  the  Company.

For  purposes  of  this Agreement, the term "Change in Control" means any of the
following  that  occurs  after  the  Effective  Date:

                    (i)     The  acquisition by any "Person" (as such term is
defined  in  Section  3(a)(9) of the Securities Exchange Act of 1934, as amended
(the  "Exchange  Act")  and  as  used  in  Section  13(d)(3) and 14(d)(2) of the
Exchange  Act)  of  beneficial  ownership  (within the meaning of SEC Rule 13d-3
under  the  Exchange Act) of 25% or more of the combined voting power of (x) all
then  outstanding  shares  of  Company Common Stock ("Outstanding Company Common
Stock")  and (y) all then outstanding securities of the Company entitled to vote
generally  in  the  election  of directors and all outstanding securities and/or
rights  to  acquire  (whether  by  conversion,  exchange  or  otherwise)  voting
securities  of  the  Company  entitled  to  vote  generally  in  the election of
directors  (collectively  with  the  Outstanding  Company  Common  Stock,  the
"Outstanding  Company  Voting Securities"); provided, however, that for purposes
of this subsection (i), the following acquisitions shall not constitute a Change
in  Control:  (1)  any acquisition by a Person who was on the Effective Date the
beneficial  owner  of  25% or more of the Outstanding Company Voting Securities,
(2)  any  acquisition  directly  by  or  from the Company (except as provided in
subsection  (iii)  below),  (3) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any affiliated company,
or  (4)  any  acquisition  by any Person pursuant to a transaction that complies
with  clauses  (1),  (2)  and  (3)  of  subsection  (iii)  below;  or

                    (ii)     Individuals  who,  as  of the Effective Date,
constitute  the Board (the "Incumbent Board") cease for any reason to constitute
at  least  a  majority  of  the  Board;  provided,  however, that any individual
becoming  a  director  subsequent  to  the  Effective  Date  whose  election, or
nomination for election by the Company's stockholders, was approved by a vote of
at  least  a majority of the directors then comprising the Incumbent Board shall
be  considered  as  though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office  occurs  as  a  result  of  an actual or threatened election contest with
respect  to  the  election or removal of directors or other actual or threatened
solicitation  of  proxies or consents by or on behalf of a Person other than the
Board;  or

                    (iii)     Consummation  of  a  reorganization,  merger  or
consolidation,  a sale, liquidation or partial liquidation, or other disposition
of  all or substantially all (e.g., 50% or more) of the assets of the Company in
one  or  a  series  of  transactions, and/or any combination of the foregoing (a
"Transaction"),  in  each  case,  unless, following such Transaction, (1) all or
substantially  all  of the persons who were the beneficial owners, respectively,
of  the  Outstanding  Company  Common  Stock  and  Outstanding  Company  Voting
Securities  immediately  prior  to such Transaction beneficially own (within the
meaning  of SEC Rule 13d-3 under the Exchange Act), directly or indirectly, more
than  60%  of,  respectively,  the then Outstanding Company Common Stock and the
Outstanding  Company  Voting  Securities,  as  the  case  may  be, of the entity
resulting  from  such Transaction (including an entity which as a result of such
transaction  beneficially  owns  (within the meaning of SEC Rule 13d-3 under the
Exchange  Act)  50% or more of the then Outstanding Company Common Stock and the
Outstanding  Company Voting Securities or all or substantially all (e.g., 50% or
more)  of  the  Company's  assets,  either  directly  or  through  one  or  more
subsidiaries,  partnerships,  limited  liability  companies, trusts and/or other
entities  or  persons) in substantially the same proportions as their beneficial
ownership,  immediately  prior  to  such  Transaction of the Outstanding Company
Common  Stock and Outstanding Company Voting Securities, as the case may be, (2)
no  Person  (excluding  any  corporation  or  other  entity  resulting from such
Transaction  or  any  employee benefit plan (or related trust) of the Company or
such  corporation  or  entity resulting from such Transaction) beneficially owns
(within  the  meaning  of  SEC  Rule  13d-3 under the Exchange Act), directly or
indirectly,  25%  or  more  of the combined voting power of the then outstanding
voting  securities  of such corporation or entity except to the extent that such
ownership  existed  prior to the Transaction, and (3) at least a majority of the
members  of  the  board of directors or other governing body (including trustees
and/or  general  partners)  of  the  corporation  or  entity resulting from such
Transaction  were members of the Incumbent Board at the time of the execution of
the  initial  agreement,  or  of  the  action  of  the Board, providing for such
Transaction.

          Executive's continued employment shall not constitute consent to, or a
waiver  of  rights  with  respect  to, any circumstance constituting Good Reason
hereunder.  Any  good faith determination of Good Reason made by Executive shall
be  conclusive.

            (d)     Notice of  Termination.  Any termination  by the Company for
Cause,  or  by  Executive  for  Good  Reason, shall be communicated by Notice of
Termination  to the other party hereto given in accordance with Section 14(f) of
this  Agreement.  A  "Notice  of  Termination"  means a written notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
to  the  extent  applicable,  sets  forth  in  reasonable  detail  the facts and
circumstances  claimed  to  provide  a  basis  for  termination  of  Executive's
employment  under the provision so indicated and (iii) specifies the termination
date.  If  a  dispute  exists  concerning  the provisions of this Agreement that
apply  to  Executive's  termination  of employment, the parties shall pursue the
resolution  of such dispute with reasonable diligence.  The failure by Executive
or  the  Company  to  set  forth  in  the  Notice  of  Termination  any  fact or
circumstance  which  contributes  to a showing of Good Reason or Cause shall not
waive any right of Executive or the Company, respectively, hereunder or preclude
Executive or the Company, respectively, from asserting such fact or circumstance
in  enforcing  Executive's  or  the  Company's  rights  hereunder.

            (e)     Date of  Termination.  "Date of  Termination"  means  (i) if
Executive's  employment  is terminated by the Company for Cause, or by Executive
for  Good  Reason,  the  date  of  the  Notice  of Termination or any later date
specified  therein,  as  the  case  may  be,  (ii)  if Executive's employment is
terminated  by  the  Company  other  than  for  Cause or Disability, the Date of
Termination  shall  be  the date  of the Notice of Termination or any later date
specified  therein,  and (iii) if Executive's employment is terminated by reason
of  death  or  Disability, the Date of Termination shall be the date of death of
Executive  or  the  Disability  Effective  Date,  as  the  case  may  be.

     7.     Obligations  of  the  Company  upon  Termination.

          (a)     Termination  by  Executive for Good Reason; Termination by the
Company  Other  Than for Cause or Disability.  If, during the Employment Period,
the  Company  shall  terminate  Executive's  employment  other than for Cause or
Disability,  or  Executive  shall  terminate  employment  for Good Reason, then:

                  (i)     the Company shall pay to Executive in a lump sum in
cash within 30 days after the Date of Termination the aggregate of the following
amounts,  or  if  elected by Executive, the following aggregate amounts shall be
paid  in cash to Executive in equal monthly installments over one year following
the  Date  of  Termination:

                          A.     the  sum of (1) Executive's Annual Base Salary
through  the  Date  of  Termination  to the extent not theretofore paid, (2) the
product of (x) the average of the Annual Bonuses paid or payable to Executive by
the  Company,  including  any bonus or portion thereof which has been earned but
deferred,  for the two most recently completed fiscal years, if any (such amount
being  referred  to  as  the "Most Recent Annual Bonus") and (y) a fraction, the
numerator  of  which  is  the  number of days elapsed in the current fiscal year
through  the  Date  of Termination, and the denominator of which is 365, and (3)
any  compensation  previously  deferred  by Executive (together with any accrued
interest  or earnings thereon) and any accrued vacation pay, in each case to the
extent  not  theretofore  paid (the sum of the amounts described in clauses (1),
(2), and (3) shall be hereinafter referred to as the "Accrued Obligations"); and

                          B.     the amount equal to the sum of (1) Executive's
Annual  Base  Salary  in  effect as of the Date of Termination, and (2) the Most
Recent  Annual  Bonus  (the "Severance Payment"); provided, however, that if the
Date  of  Termination  occurs  on  or  after  a Change in Control, the Severance
Payment  shall  be  equal  to  the  amount  equal  to  two  times the sum of (1)
Executive's  Annual Base Salary in effect as of the Date of Termination, and (2)
the  Most  Recent  Annual  Bonus;  and

                  (ii)    for  one  year after the Date of Termination (or, if
the  Date  of  Termination  occurs on or after a Change in Control, then for two
years  after  the Date of Termination), or such longer period as may be provided
by  the  terms of the appropriate plan, program, practice or policy, the Company
shall continue benefits to Executive and/or Executive's family at least equal to
those  which  would  have  been  provided to them in accordance with the Welfare
Plans  described in Section 5(c) of this Agreement if Executive's employment had
not  been  terminated or, if more favorable to Executive, as in effect generally
at any time thereafter with respect to other Peer Executives and their families,
provided,  however,  that  in  the  event  that  Executive's  and  his  family's
participation  in  any  Welfare  Plans  is  prohibited  by law or the applicable
Welfare  Plan,  the  Company  shall  provide  Executive  and his family, without
further  cost or expense to Executive or his family members, benefits similar to
those  which  they  would  otherwise  have  been  entitled to receive under such
Welfare Plans if Executive's employment had not terminated. If Executive becomes
re-employed  with  another  employer and is eligible to receive medical or other
welfare  benefits  under  another  employer-provided plan, the medical and other
welfare  benefits  described  herein  shall be secondary to those provided under
such  other  plan  during such applicable period of eligibility. For purposes of
determining  eligibility  (but  not  the  time  of  commencement of benefits) of
Executive  for  retiree benefits pursuant to such Welfare Plans, Executive shall
be  considered  to  have  remained  employed  until one year (or, if the Date of
Termination occurs on or after a Change in Control, two years) after the Date of
Termination  and  to  have  retired  on  the  last  day  of  such  period;  and

                  (iii)    All restricted stock awards, including the Restricted
Shares,  granted  by  the  Company  to  Executive shall become fully vested; and

                  (iv)     to  the  extent not theretofore paid or provided, the
Company  shall  timely pay or provide to Executive any other amounts or benefits
required  to be paid or provided or which Executive is eligible to receive under
any  plan,  program,  policy or practice or contract or agreement of the Company
(such  other amounts and benefits shall be hereinafter referred to as the "Other
Benefits").

          (b)     Death.  If  Executive's  employment is terminated by reason of
Executive's  death  during the Employment Period, this Agreement shall terminate
without  further  obligations  to  Executive's  legal representatives under this
Agreement,  other  than  for  payment of Accrued Obligations, the vesting of all
restricted stock awards, including the Restricted Shares, granted by the Company
to  executive,  and  the timely payment or provision of Other Benefits.  Accrued
Obligations  shall  be paid to Executive's estate or beneficiary, as applicable,
in  a  lump sum in cash within 30 days of the Date of Termination.  With respect
to  the  provision  of  Other  Benefits, the term Other Benefits as used in this
Section 7(b) shall include, and Executive's estate and/or beneficiaries shall be
entitled to receive, benefits under such plans, programs, practices and policies
relating  to  death benefits, if any, as are applicable to Executive on the date
of  his  death.

          (c)     Disability.  If Executive's employment is terminated by reason
of  Executive's  Disability  during  the Employment Period, this Agreement shall
terminate  without  further  obligations to Executive, other than for payment of
Accrued  Obligations,  the vesting of all restricted stock awards, including the
Restricted  Shares,  granted by the Company to executive, and the timely payment
or  provision of Other Benefits.  Accrued Obligations shall be paid to Executive
in  a  lump sum in cash within 30 days of the Date of Termination.  With respect
to  the  provision  of  Other  Benefits, the term Other Benefits as used in this
Section 7(c) shall include, and Executive shall be entitled after the Disability
Effective  Date  to  receive,  disability  and  other benefits under such plans,
programs,  practices  and  policies  relating  to  disability,  if  any,  as are
applicable  to  Executive  and  his  family  on  the  Date  of  Termination.

          (d)     Retirement.  If Executive's employment is terminated by reason
of  Executive's  Retirement  during  the Employment Period, this Agreement shall
terminate  without  further  obligations to Executive, other than for payment of
Accrued  Obligations  and  the  timely  payment  or provision of Other Benefits.
Accrued  Obligations  shall be paid to Executive in a lump sum in cash within 30
days  of  the  Date  of  Termination.  With  respect  to  the provision of Other
Benefits,  the  term  Other Benefits as used in this Section 7(d) shall include,
and  Executive  shall  be  entitled  after  the  Date of Termination to receive,
retirement and other benefits under such plans, programs, practices and policies
relating  to  retirement,  if any, as are applicable to Executive on the Date of
Termination.

          (e)     Termination  for  Cause  or Voluntary Termination without Good
Reason.  If  Executive's  employment  shall  be  terminated for Cause during the
Employment Period, this Agreement shall terminate without further obligations to
Executive  other  than  the  obligation  to pay to Executive (x) his Annual Base
Salary  through  the  Date  of  Termination,  (y) the amount of any compensation
previously  deferred  by  Executive, and (z) Other Benefits, in each case to the
extent  theretofore  unpaid.  If  Executive  voluntarily  terminates  employment
during  the  Employment  Period,  excluding  a termination for Good Reason, this
Agreement  shall  terminate without further obligations to Executive, other than
for  Accrued  Obligations and the timely payment or provision of Other Benefits.
In  such  case, all Accrued Obligations shall be paid to Executive in a lump sum
in  cash  within  30  days  of  the  Date  of  Termination.

          (f)     Expiration  of  Employment  Period.  If Executive's employment
shall  be terminated due to the normal expiration of the Employment Period, this
Agreement  shall  terminate without further obligations to Executive, other than
for  payment of Accrued Obligations and the timely payment or provision of Other
Benefits.

     8.    Non-exclusivity  of Rights.  Nothing in this Agreement  shall prevent
or  limit  Executive's  continuing or future participation in any plan, program,
policy  or practice provided by the Company and for which Executive may qualify,
nor,  subject  to Section 14(d), shall anything herein limit or otherwise affect
such  rights  as  Executive  may  have  under any contract or agreement with the
Company.  Amounts  which  are  vested  benefits  or which Executive is otherwise
entitled  to  receive  under  any  plan,  policy,  practice or program of or any
contract  or  agreement  with  the  Company  at  or  subsequent  to  the Date of
Termination  shall  be payable in accordance with such plan, policy, practice or
program  or  contract  or  agreement,  except  as  explicitly  modified  by this
Agreement.

     9.    Full  Settlement;  Cost of Enforcement.  The Company's obligation to
make  the  payments  provided for in this Agreement and otherwise to perform its
obligations  hereunder  shall  not  be  affected  by  any set-off, counterclaim,
recoupment,  defense  or other claim, right or action which the Company may have
against  Executive  or others.  In no event shall Executive be obligated to seek
other  employment  or  take any other action by way of mitigation of the amounts
payable  to  Executive under any of the provisions of this Agreement and, except
as  explicitly provided herein, such amounts shall not be reduced whether or not
Executive  obtains  other employment.  The Company agrees to pay as incurred, to
the  full  extent  permitted by law, all legal fees and expenses which Executive
may  reasonably  incur  as  a  result  of any contest (regardless of the outcome
thereof)  by  the Company, Executive or others of the validity or enforceability
of,  or  liability  under,  any  provision of this Agreement or any guarantee of
performance thereof (including as a result of any contest by Executive about the
amount of any payment pursuant to this Agreement), plus in each case interest on
any  delayed  payment  at  the  applicable  federal rate provided for in Section
7872(f)(2)(A)  of  the  Internal  Revenue Code of 1986, as amended (the "Code").
                                                                         ----

     10.     Certain  Additional  Payments  by  the  Company.

          (a)     Anything in this Agreement to the contrary notwithstanding and
except  as set forth below, in the event it shall be determined that any payment
or  distribution by the Company to or for the benefit of Executive (whether paid
or  payable  or  distributed  or  distributable  pursuant  to  the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Section 10) (a "Payment") would be subject to the excise tax
imposed by Section 4999 of the Code or any interest or penalties are incurred by
Executive  with  respect  to such excise tax (such excise tax, together with any
such  interest  and  penalties,  are hereinafter collectively referred to as the
"Excise Tax"), then Executive shall be entitled to receive an additional payment
(a  "Gross-Up Payment") in an amount such that after payment by Executive of all
taxes  (including any interest or penalties imposed with respect to such taxes),
including  any income taxes (and any interest and penalties imposed with respect
thereto)  and Excise Tax imposed upon the Gross-Up Payment, Executive retains an
amount  of  the  Gross-Up  Payment  equal  to  the  Excise  Tax imposed upon the
Payments.

          (b)     Subject to the provisions of Section 10(c), all determinations
required to be made under this Section 10, including whether and when a Gross-Up
Payment  is required and the amount of such Gross-Up Payment and the assumptions
to  be  utilized  in  arriving  at such determination, shall be made by Deloitte
&Touche LLP or such other certified public accounting firm reasonably acceptable
to  the  Company as may be designated by Executive (the "Accounting Firm") which
shall provide detailed supporting calculations both to the Company and Executive
within  15  business days of the receipt of notice from Executive that there has
been  a  Payment, or such earlier time as is requested by the Company.  All fees
and  expenses  of  the Accounting Firm shall be paid solely by the Company.  Any
Gross-Up  Payment,  as  determined pursuant to this Section 10, shall be paid by
the  Company  to  Executive  within  five  days of the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be binding
upon  the  Company  and  Executive.  As  a  result  of  the  uncertainty  in the
application of Section 4999 of the Code at the time of the initial determination
by  the  Accounting  Firm hereunder, it is possible that Gross-Up Payments which
will  not  have been made by the Company should have been made ("Underpayment"),
consistent  with  the  calculations required to be made hereunder.  In the event
that  the  Company exhausts its remedies pursuant to Section 10(c) and Executive
thereafter  is required to make a payment of any Excise Tax, the Accounting Firm
shall  determine  the  amount of the Underpayment that has occurred and any such
Underpayment  shall  be  promptly  paid  by the Company to or for the benefit of
Executive.

          (c)     Executive  shall notify the Company in writing of any claim by
the  Internal  Revenue Service that, if successful, would require the payment by
the  Company  of  a  Gross-Up Payment (or an additional Gross-Up Payment).  Such
notification  shall  be  given  as  soon  as  practicable  but no later than ten
business  days  after  Executive  is informed in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such claim
is  requested  to  be  paid.  Executive  shall  not  pay such claim prior to the
expiration of the 30-day period following the date on which it gives such notice
to  the  Company  (or such shorter period ending on the date that any payment of
taxes  with respect to such claim is due).  If the Company notifies Executive in
writing  prior  to the expiration of such period that it desires to contest such
claim,  Executive  shall:

                 (i)  give the Company any information reasonably requested by
the Company  relating  to  such  claim,

                 (ii)  take such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an  attorney  reasonably  selected  by  the  Company,

                 (iii)  cooperate  with the Company  in  good  faith  in  order
effectively  to  contest  such  claim,  and

                 (iv)  permit  the Company  to participate  in  any  proceedings
relating  to  such  claim;

provided,  however,  that  the Company shall bear and pay directly all costs and
expenses  (including  additional  interest and penalties) incurred in connection
with  such  contest  and  shall  indemnify  and  hold  Executive harmless, on an
after-tax  basis,  for  any  Excise  Tax  or  income tax (including interest and
penalties  with  respect thereto) imposed as a result of such representation and
payment  of  costs and expenses.  Without limitation of the foregoing provisions
of  this  Section  10(c),  the  Company  shall  control all proceedings taken in
connection with such contest (to the extent applicable to the Excise Tax and the
Gross-Up  Payment)  and,  at  its  sole  option, may pursue or forgo any and all
administrative  appeals,  proceedings,  hearings and conferences with the taxing
authority  in  respect  of such claim and may, at its sole option, either direct
Executive  to  pay  the tax claimed and sue for a refund or contest the claim in
any  permissible  manner,  and  Executive  agrees to prosecute such contest to a
determination  before  any  administrative  tribunal,  in  a  court  of  initial
jurisdiction  and  in  one  or  more  appellate  courts,  as  the  Company shall
determine;  provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to  Executive,  on an interest-free basis and shall indemnify and hold Executive
harmless,  on  an  after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or  with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes  for  the  taxable  year of Executive with respect to which such contested
amount  is  claimed  to  be  due  is  limited  solely  to such contested amount.
Furthermore,  the  Company's  control  of the contest shall be limited to issues
with  respect  to  which  a  Gross-Up  Payment  would  be  payable hereunder and
Executive  shall be entitled to settle or contest, as the case may be, any other
issue  raised  by  the  Internal  Revenue Service or any other taxing authority.

          (d)     If,  after  the  receipt by Executive of an amount advanced by
the Company pursuant to Section 10(c), Executive becomes entitled to receive any
refund  with  respect  to  such claim, Executive shall (subject to the Company's
complying  with  the  requirements of Section 10(c)) promptly pay to the Company
the  amount  of such refund (together with any interest paid or credited thereon
after  taxes  applicable  thereto).  If,  after  the  receipt by Executive of an
amount  advanced  by  the  Company pursuant to Section 10(c), a determination is
made  that  Executive  shall  not be entitled to any refund with respect to such
claim  and  the  Company  does  not notify Executive in writing of its intent to
contest  such  denial  of  refund  prior to the expiration of 30 days after such
determination,  then such advance shall be forgiven and shall not be required to
be  repaid  and  the amount of such advance shall offset, to the extent thereof,
the  amount  of  Gross-Up  Payment  required  to  be  paid.

     11.     Representations  and  Warranties.  Executive  hereby represents and
warrants  to  the Company that Executive is not a party to, or otherwise subject
to,  any  covenant  not  to  compete  with any person or entity, and Executive's
execution  of  this  Agreement and performance of his obligations hereunder will
not  violate  the  terms or conditions of any contract or obligation, written or
oral,  between  Executive  and  any  other  person  or  entity.

     12.     Confidential Information; Nonsolicitation.  Executive shall hold in
a  fiduciary  capacity for the benefit of the Company all secret or confidential
information,  knowledge or data relating to the Company or any of its affiliated
companies,  and  their  respective businesses, which shall have been obtained by
Executive  during Executive's employment by the Company or any of its affiliated
companies  and which shall not be or become public knowledge (other than by acts
by  Executive  or  representatives of Executive in violation of this Agreement).
After  termination  of  Executive's employment with the Company, Executive shall
not,  without  the  prior  written consent of the Company or as may otherwise be
required  by  law or legal process, communicate or divulge any such information,
knowledge  or  data to anyone other than the Company and those designated by it.
In  no  event  shall  an asserted violation of the provisions of this Section 13
constitute a basis for deferring or withholding any amounts otherwise payable to
Executive  under this Agreement.  Executive agrees that, for a period of one (1)
year  after  termination,  he will not solicit or hire any Company employees for
any  business  that  is  in  direct  competition  with  any  Company  property.

     13.     Assignment  and  Successors.

             (a)     This  Agreement is personal to  Executive and  without the
prior  written  consent  of  the  Company  shall  not be assignable by Executive
otherwise  than  by will or the laws of descent and distribution with respect to
payments,  property  and benefits payable to Executive hereunder. This Agreement
shall inure to the benefit of and be enforceable by Executive's heirs, legatees,
and  personal  and  legal  representatives.

             (b)     This Agreement shall inure to the benefit of and be binding
upon  the  Company  and  its  successors  and  assigns.

             (c)     The  Company  will  require  any  successor (whether direct
or  indirect,  as  a result of a business combination, assignment, assumption or
otherwise)  to  all  or  substantially  all  (e.g., 50% or more) of the business
and/or  assets  of  the  Company  to  expressly assume and agree to perform this
Agreement  in  the  same manner and to the same extent that the Company would be
required  to  perform  it if no such succession had taken place. As used in this
Agreement,  "Company"  shall  mean  the  Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform  this  Agreement  by  operation  of  law,  or  otherwise.

     14.     Miscellaneous.

             (a)     Waiver.  Failure of either  arty  to insist, in one or more
instances,  on  performance by the other in strict accordance with the terms and
conditions  of  this Agreement shall not be deemed a waiver or relinquishment of
any  right  granted  in  this Agreement or of the future performance of any such
term  or  condition  or of any other term or condition of this Agreement, unless
such  waiver  is  contained  in a writing signed by the party making the waiver.

             (b)     Severability.  If any provision or  covenant,  or  any part
thereof, of this Agreement should be held by any court to be invalid, illegal or
unenforceable,  either  in  whole  or  in  part,  such invalidity, illegality or
unenforceability  shall  not  affect the validity, legality or enforceability of
the  remaining  provisions or covenants, or any part thereof, of this Agreement,
all  of  which  shall  remain  in  full  force  and  effect.

             (c)     Other  Agents.  Nothing  in  this  Agreement  is  to  be
interpreted as limiting the Company from employing other personnel on such terms
and  conditions  as  may  be  satisfactory  to  it.

             (d)     Entire Agreement. Except as provided herein, this Agreement
contains  the entire agreement between the Company and Executive with respect to
the subject matter hereof and, from and after the Effective Date, this Agreement
shall  supersede  any  other  agreement  between the parties with respect to the
subject  matter  hereof,  including  without  limitation,  the  Prior Agreement.

             (e)     Governing Law.  Except to the extent  preempted by federal
law, and without regard to conflict of laws principles, the laws of the State of
Georgia shall govern this Agreement in all respects, whether as to its validity,
construction,  capacity,  performance  or  otherwise.

             (f)     Notices.  All  notices  nd other  communications hereunder
shall be in writing and shall be given by hand delivery to the other party or by
registered  or  certified mail, return receipt requested, postage prepaid, or by
reliable  overnight  courier  service  addressed  as  follows:

             If  to  Executive:

             James  G.  Levy
             2686  Tabby  Walk
             Marietta,  GA  30062

             If  to  the  Company:

             IRT  Property  Company
             200  Galleria  Parkway
             Suite  1400
             Atlanta,  Georgia  30339
             Attention:  Chief  Executive  Officer

or  to  such  other address as either party shall have furnished to the other in
writing  in  accordance  herewith.  Notice and communications shall be effective
when  actually  received  by  the  addressee.

             (g)     Amendments  and  Modifications.  This Agreement may not  be
amended  or  modified  other than by a written agreement executed by the parties
hereto  or their respective successors and/or personal or legal representatives,
which  writing  makes  specific  reference  to  this  Agreement.

             (h)     Withholding.  The Company may  withhold  from  any  amounts
payable  under  this  Agreement  such  federal, state, local or foreign taxes as
shall  be  required to be withheld pursuant to any applicable law or regulation.

             (i)     Construction.  The captions and headings of this Agreement
are  for  convenience  of  reference  only and are not intended to and shall not
effect  the  interpretation  of this Agreement. As used herein, the plural shall
include  the  singular and vice versa, any reference to gender shall include the
other  genders,  and the terms "include", "including" and any derivation thereof
shall  be without limitation by virtue of enumeration thereof or otherwise. Each
party and his or its counsel have reviewed this Agreement and have been provided
the  opportunity  to  revise  this Agreement and accordingly, the normal rule of
construction  to  the effect that any ambiguities are to be resolved against the
drafting  party  shall  not be employed in the interpretation of this Agreement.
Instead,  the  language  of  all parts of this Agreement shall be construed as a
whole, and according to its fair meaning, and not strictly for or against either
party.

                         (signatures on following page)

<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have duly executed and delivered
this  Employment  Agreement  as  of  the  date  first  above  written.

                            IRT  PROPERTY  COMPANY

                            By: /s/  Thomas H. McAuley
                              -------------------------
                            Name:  Thomas  H.  McAuley
                            Title:  President  and  Chief  Executive  Officer

                            EXECUTIVE:

                            /s/  James G. Levy
                            ------------------
                            James  G.  LevyQ1 2003 10Q Exhibit 10.1

Exhibit 10.1

Rational Software Corporation

Fiscal Year 2003 Corporate Incentive Compensation Plan

Terms and Conditions

	Purpose

The Fiscal Year 2003 Corporate Incentive Compensation Plan has been established to compensate eligible participants for
performance against predetermined objectives, including financial measures of corporate performance. 

	Eligibility

Regular employees of Rational Software are eligible to participate in this program as designated by management. 

Participants must be actively employed by Rational on the date the incentive payment is issued from Payroll to be eligible for
incentive payment under the Plan.  

Employees may be added to the Fiscal Year 2003 Corporate Incentive Plan during the first three quarters of the fiscal year if they
are hired, promoted into or transferred into an incentive eligible position.  Individuals who become eligible for the plan after the
first day of the fiscal year will be eligible for payment on a prorated basis for that plan year.

Employees hired, promoted or transferred into an incentive eligible position during the fourth quarter of the fiscal year will
begin eligibility in the incentive program at the start of the following fiscal year.

	Definitions

Plan Year: 2003 fiscal year (April 1, 2002 to March 31, 2003).

Plan Effective Date: April 1, 2002

	Business Performance Measurement Targets

Corporate EPS "Gate": 

No incentive payment will be made to any participant unless Rational achieves its Fiscal Year 2003 incentive plan earnings per
share (EPS) target.

Incentive Plan Performance Measurement Targets:

The performance measurements for earning an incentive payment will be assigned and communicated to each eligible participant at
the beginning of the Plan Year.  Performance measurements will be objective and measurable corporate or group targets.

In all cases, performance measurement targets will be determined and assigned subject to the approval of the Senior Vice President
and the President. Any mid-year changes to assigned targets must be made in writing and approved by the Senior Vice President.

	Incentive Compensation Targets and Administration

Each eligible participant will be assigned either a fixed dollar target incentive, or a target incentive expressed as a percentage
of his/her base salary.  Incentive payments based on a percentage of salary will be calculated against the participant's base salary
at the end of the Plan Year.

The target incentive amount will be paid to the individual at 100% achievement of the performance
measurement target(s).  For Plans that provide additional incentive amounts for above target performance, a maximum incentive payment
will also be assigned and communicated to the participant.

	Incentive Payment

The Fiscal Year 2003 Corporate Incentive Compensation Plan is an annual plan based on the achievement of annual objectives for a
given fiscal year. Participants must be actively employed with Rational on the date the incentive payment is issued from Payroll to
be eligible for incentive payment under the Plan, except as noted in Section 10, Item 4 below.   Payments will be made after the
Company has publicly reported its year-end results.  Generally, it is expected that payments will be made during May following the
close of the company's fiscal year at the end of March.

All incentive compensation payments are subject to final review and approval by the group Senior Vice President, the Chief
Financial Officer, and the President.

Incentive payments are subject certain benefit payroll deductions and applicable local, state and federal taxes. 

	Administration

Responsibility for administering this program will lie with the Corporate Compensation staff of the Human Resources department.
Rational reserves the sole and absolute discretion to interpret the terms and conditions of this incentive plan.

	General

	This Plan is effective on an annual basis and is subject to change or termination by Rational at any time, with or without
notice.  
	This Plan has been adopted voluntarily by Rational.  Neither the participant nor Rational has entered into any contract of
employment, express or implied, and the employment relationship between Rational and the participant remains "at-will".
That is, either the participant or Rational may terminate the employment relationship at any time, for any reason.  Nothing in this
plan shall be construed to create or imply the creation of an employment contract between Rational, or any of its subsidiaries, and
any participant, nor a guarantee of employment for any specific period of time.
	All participants are expected to fully abide by the Company policies established for proper conduct in business dealings.
Violation of these policies may result in immediate termination. 
	In the case of leave of absence, retirement, or death during the plan year, any payment under this plan will be prorated based on
the number of months the employee was actively at work during the Plan Year.
	In case of company initiated transfer and associated change in either plan participation and/or measurement, a prorated payment
will be made at the end of the plan year based on the number of months of participation in the Plan or during which the given
measurement was in effect.
	Individuals on formal corrective performance plans at the time of payment are not eligible for incentive plan payment.  Incentive
payments to individuals who were on formal corrective performance plans during the plan year may be prorated to reflect only the
period of satisfactory performance.
	The executive management of Rational Software reserves the unilateral right to terminate any individual's participation in the
Plan at any time, with or without prior written notice.  No individual participant is guaranteed a payment under this Plan.
	These terms and conditions will govern plan administration, except where applicable laws take precedence.

Rational Software Corporation

                                                                                           Fiscal Year 2003 Corporate Incentive Compensation Plan

Participant Name:

Job Title:

Department:

Plan Effective Date:April 1, 2002

Annualized Target Incentive at 100% Achievement:___% of Base Salary

 

	Plan Measurement and Payment

The Annualized Target Incentive at 100% Achievement will be paid upon the achievement of both of the following goals:

Earnings Per Share (EPS) Incentive Plan Goal:

Fiscal Year 2003 Corporate Bookings Goal:

 

 

Administration of this incentive plan will be governed by the Rational Software Fiscal Year 2003 Corporate Incentive Compensation
Plan Terms and Conditions document.  The participant's signature below indicates the participant's receipt and acceptance of the
Rational Software Fiscal Year 2003 Corporate Incentive Compensation Plan Terms and Conditions document.  This plan is not a contract
of employment and does not guarantee continued employment for any period. This compensation plan is considered company
confidential.

Accepted and agreed:

____________________________________                    ________________________________
Participant Signature        Date                       Manager Signature        Date

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