Document:

Exhibit 10.3 

EXECUTIVE EMPLOYMENT AGREEMENT

          This
Employment Agreement (“Agreement”) is entered into this 29th day of March,
2011, by and between Tenel H. Tayar (“Executive”) and AmREIT, Inc. (the
“Company”). 

RECITALS

          In
consideration of the mutual covenants set forth herein and other good and
valuable consideration, the receipt and sufficiency of which the parties
acknowledge, the Company and Executive, intending to be legally bound, hereby
agree as follows:

          1.
Employment Term.
The Company agrees to employ Executive and Executive hereby accepts such
employment from the Company upon the terms and conditions set forth in this
Agreement for the period beginning on the date hereof and continuing until
December 31, 2012 (unless otherwise terminated earlier in accordance with
Section 5 hereof) (“Initial Employment Period”). Upon the expiration of
the Initial Employment Period, this Agreement shall be automatically renewed
for consecutive one-year periods unless either party provides a written notice
of non-renewal to the other party at least one hundred eighty (180) days prior
to the end of the Initial Employment Period or any additional one-year period
(the “Renewal Employment Period”) (the Initial Employment Period and any
Renewal Employment Periods shall be referred to collectively herein as the
“Employment Period”). A notice of non-renewal provided by the Company shall not
constitute a termination without Cause under Section 5(b) and does not
result in non-competition by the Executive under Section 9. 

          2.
Nature of Duties. Executive shall be employed as the
Company’s Senior Vice President and Chief Investment Officer with job
responsibilities related thereto, and such job responsibilities may be modified
from time to time at the sole discretion of the Chief Executive Officer or the
Board of Directors of the Company (“Board”). Executive shall report to the
Chief Executive Officer and shall devote his full time efforts to the faithful
performance of his duties on behalf of the Company. Executive shall not engage
in additional gainful employment of any kind or undertake any role or position,
other than charitable or civic activities, whether or not for compensation,
with any person or entity during the Employment Period without advance written
approval of the Chief Executive Officer or the Board. Executive shall perform
his duties at or within a reasonable vicinity of Houston, Texas, except for
required travel on the Company’s business. 

          3.
Adherence to Company Rules. Executive,
at all times during the Employment Period, shall strictly adhere to and obey
all of the Company’s written rules, regulations and policies, which will be
provided to Executive and are now in effect, or as are subsequently 

adopted or modified by the Company and provided to Executive, which
govern the operation of the Company’s business and the conduct of employees of
the Company. 

          4.
Compensation and Benefits. 

                    a.
Base Salary.
During the Employment Period, Executive shall receive an annual base salary of
$197,600, payable in equal installments in accordance with the Company’s normal
payroll procedures. Executive’s salary shall be subject to all applicable
federal and state withholding taxes. Executive’s salary may be increased by the
CEO and the Compensation Committee of the Company’s Board of Directors
(“Compensation Committee”) at any time in their discretion. 

                    b.
Incentive Compensation. During the Employment Period, Executive will be eligible to participate
in any annual performance incentive or bonus program, as approved by the CEO
and the Compensation Committee in their discretion, based on Company and
individual performance goals. Any incentive or bonus compensation for any year
shall be paid on or before March 15 of the following year, based on Executive’s
achievement of pre-established goals. Executive must be an employee on the
payment date for the bonus or incentive to be considered “earned or accrued”,
other than production-based bonuses, which are considered “earned or accrued”
as the production goals are met. Executive shall not be entitled to earn any
incentive compensation or bonuses hereunder after the termination of this
Agreement.

                    c.
Standard Benefits. During the Employment Period,
Executive shall be entitled to participate in all employee benefit plans and
programs, including paid vacations, generally available to other similarly
situated Company executives, subject to the terms and conditions of the
applicable plans. 

                    d.
Expenses. During the Employment Period, Executive
shall be entitled to receive prompt reimbursement for all reasonable and
customary travel and business expenses he incurs in connection with his
employment hereunder. Executive must account for those expenses in accordance
with the policies and procedures established by the Company. 

                    e.
Restricted Equity. During the Employment Period,
Executive may, within the sole discretion of the CEO and the Compensation Committee,
be eligible to participate in such restricted share plans that the Company may
establish from time to time in the future, subject to the terms and conditions
of the applicable plan. 

                    f.
Vacation.
Executive shall be entitled to vacation in each calendar year, together with
leave of absence and leave for illness or temporary disability in accordance
with the policies of the Company in effect from time to time; provided however
that Executive shall not be permitted to carry over more than 40 hours of
unused vacation time from year to year. 

          5.
Termination. In addition to non-renewal as set forth
in Section 1 of this Agreement, the Company or Executive may terminate
this Agreement and Executive’s employment as provided below:

Page 2

                    a.
Termination by the Company for Cause. The Company
shall have the right to terminate Executive’s employment and this Agreement at
any time for any of the following reasons (each of which is referred to herein
as “Cause”):

                              (A)
continued failure by Executive (other than for reason
of mental or physical illness), after notice by the Company, to perform
Executive’s duties;

                              (B)
intentional misconduct or gross negligence in the
performance of Executive’s duties;

                              (C)
any act by Executive of fraud or dishonesty with
respect to any aspect of the Company’s business including, but not limited to,
falsification of Company records;

                              (D)
conviction of Executive of a felony (or a plea of nolo contendere with respect thereto); 

                              (E)
acceptance by Executive of employment with another
employer; or 

                              (F)
Executive’s breach of Sections 8, 9, 10 or 11 of this
Agreement.

          If the
Company terminates Executive’s employment for any of the reasons set forth
above: (A) the Company shall within ten (10) days following the date of
termination, pay Executive any earned and accrued but unpaid installments of
base salary and any other accrued and unpaid amounts due to Executive under
Section 4 above through the date of termination, and the Company shall
have no further obligations to Executive hereunder from and after the date of
termination; and (B) all of Executive’s outstanding stock awards or other
equity grants shall continue to be governed by the terms and conditions of the
applicable grant agreement and any related plan. 

                    b.
Termination by the Company Without Cause. The Company
shall have the right to terminate Executive’s employment without Cause by
giving Executive not less than thirty (30) days’ prior written notice and in
such event, the Company shall pay Executive (i) any earned and accrued but
unpaid compensation and benefits and any other accrued and unpaid amounts due
to Executive under Section 4 above through the date of termination and,
subject to the provisions of Sections 15 and 27, (ii) a severance payment
equal to one (1) times Executive’s annual base salary (based on Executive’s
monthly salary on the date of termination) and one (1) times Executive’s
average annual bonus, computed as the average of the last three (3) years bonus
received by Executive (if three years of bonus history is not available, then
the most recent annually paid or targeted bonus will be used). The Company
shall pay the severance payment referenced in this paragraph in equal monthly
installments over a period of twelve (12) months beginning thirty (30) days
following the date of termination. In addition, all of Executive’s unvested
restricted shares and equity interests shall continue to be governed by the
terms and conditions of any applicable grant agreement and any related plan. In
addition, upon a termination pursuant to this subsection b., Executive shall be
entitled to continue to participate in Company-provided medical or health
insurance or benefit plans, at no cost to Executive, for one (1) year after the
date of termination; provided, however, that if applicable law or the terms of
the plan prohibit the continued participation of Executive or his dependents
for all or part of such period, the Company shall make a cash payment to
Executive that is sufficient, on an after-tax

Page 3

basis, to reimburse Executive for obtaining insurance that provides
substantially the same benefits as the Company-provided medical or health
insurance or benefit plan over the same one-year period. 

                    c.
Voluntary Termination by Executive. Except as provided
in Section 5(f), Section 5(g) and Section 6(a) below, in the event that Executive’s employment with the
Company is voluntarily terminated by Executive for any reason, the Company
shall pay Executive any earned and accrued but unpaid installments of base
salary and any other accrued and unpaid amounts due to Executive under
Section 4 above through the date of termination, and the Company shall
have no further obligations hereunder from and after the date of such
termination and the Company and Executive shall have all other rights and
remedies available under this Agreement or any other agreement and at law or in
equity. 

                    d.
Termination Upon Death. In the event that Executive
shall die during the Employment Period, (i) within thirty (30) days following
the date of death, the Company shall pay to Executive’s estate (A) any earned
and accrued but unpaid installments of base salary and bonus, any accrued but
unpaid vacation benefit and any other accrued and unpaid amounts due to
Executive under Section 4 above through the date of Executive’s death and
(ii) all of Executive’s unvested restricted shares and equity interests shall
continue to be governed by the terms and conditions of any applicable grant
agreement and any related plan. Executive shall be entitled to participate in
the Company’s life insurance program.

                    e.
Termination Upon Disability. In the event that
Executive shall become Disabled (as defined below) during the Employment
Period, the Company may terminate Executive’s employment hereunder by giving
Executive not less than thirty (30) days’ prior written notice of the effective
date of termination and in such event, the Company shall pay Executive any
earned and accrued but unpaid installments of base salary and any other accrued
and unpaid amounts due to Executive under Section 4 above through the date
of termination. In addition, all of Executive’s unvested restricted shares and
equity interests shall continue to be governed by the terms and conditions of
any applicable grant agreement and any related plan. For purposes of this
Agreement, Executive shall become “Disabled” if he shall become, because of
illness or incapacity, unable to perform the essential functions of his job
under this Agreement, with or without reasonable accommodation, for a
continuous period of ninety (90) days during the Employment Period. 

                    f.
Termination by Executive for Good
Reason. Executive may terminate his employment
hereunder for Good Reason (as defined below) at any time during the Employment
Period by delivery of written notice to the Company of such termination at
least thirty (30) days prior to the effective date of termination and in such
event, the Company shall pay Executive (i) any earned and accrued but
unpaid compensation and benefits and any other accrued but unpaid amounts due
to Executive under Section 4 above through the date of termination and,
subject to the provisions of Sections 15 and 27, (ii) a severance payment
equal to one (1) times Executive’s annual base salary (based on Executive’s
monthly salary on the date of termination) and one (1) times Executive’s
average annual bonus, computed as the average of the last three (3) years bonus
received by Executive (if three years of bonus history is not available, then
the most recent annually paid or targeted bonus will be used). The Company
shall pay the severance payment referenced in this paragraph in equal monthly
installments over 

Page 4

a period of twelve (12) months beginning thirty (30) days after the date
of termination. In addition, all of Executive’s unvested restricted shares and
equity interests shall continue to be governed by the terms and conditions of
any applicable grant agreement and any related plan. 

          For
purposes of this Agreement, “Good Reason” shall mean any one or more of the
following:

                              (A)
a reduction by the Company, without Executive’s
consent, in Executive’s position, duties, responsibilities or status with the
Company that represents a substantial adverse change from his position, duties,
responsibilities or status, but specifically excluding any action in connection
with the termination of Executive’s employment for death, Disability (as
defined herein), Cause (as defined herein) or by Executive for Normal
Retirement (as defined herein); provided, however, that the Company (i) hiring
or promoting of one or more new or existing employees to whom Executive may
report or (ii) otherwise undertaking an internal reorganization that results in
Executive reporting to a new or different person shall not be considered “Good
Reason” for purposes of this subsection (A);

                              (B)
the Company requiring, as a condition of employment,
Executive to relocate his employment more than fifty (50) miles from the
location of Executive’s principal office on the date of this Agreement, without
the consent of Executive;

                              (C)
any willful and material breach by the Company (or by
the acquiring or successor business entity) of any material provision of this
Agreement or any other agreement between the Company or any of its subsidiaries
and Executive that, in any case, is not cured within thirty (30) days of the
Company’s receipt of written notice from Executive of such breach; or

                              (D)
the failure by the Company to obtain the assumption of
this Agreement by any successor or assign of the Company. 

                    g.
Termination Upon Normal Retirement. In the event that
Executive’s employment terminates by reason of his Normal Retirement during the
Employment Period, (i) the Company shall pay to Executive any earned and
accrued but unpaid installments of base salary and bonus, any accrued but
unpaid vacation benefit and any other accrued and unpaid amounts due to
Executive under Section 4 above through the date of termination, and (ii)
all of Executive’s unvested restricted shares and equity interests shall vest
and be exercisable and all restrictions on the transfer of any shares or equity
interests shall lapse as of the date of Executive’s termination, and otherwise
shall continue to be governed by the terms and conditions of any applicable
grant agreement and any related plan. The Company shall have no further
obligations hereunder from and after the date of such termination. For purposes
of this Agreement, “Normal Retirement” means Executive’s voluntary termination
of employment with the Company after attaining age 65.

          6.
 Change of Control.

                    a.
Change of Control.
For purposes of this Agreement, unless the Board determines otherwise, a
“Change of Control” of the Company shall be deemed to have occurred at such
time as:

Page 5

                              (A)
any “person” (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as
modified and used in Sections 13(d) and 14(d) thereof) or group of persons
together with its affiliates, but excluding (i) the Company or any of its
subsidiaries, (ii) any employee benefit plans of the Company, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, is or becomes, directly or indirectly, the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company’s then outstanding securities (not
including in the securities beneficially owned by such person any securities
acquired directly from the Company); or

                              (B)
the following individuals cease for any reason to
constitute a majority of the number of directors then serving: individuals who,
on the date hereof, constitute the Board and any new director (other than a
director whose initial assumption of office is in connection with an actual or
threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of the Company) whose
appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or

                              (C)
a plan of reorganization, merger, consolidation, sale
of all or substantially all of the assets of the Company or similar transaction
is approved or occurs or is effectuated pursuant to which the Company is not
the resulting or surviving entity; provided, however, that such an event listed
above will be deemed to have occurred or to have been effectuated only upon
receipt of all required regulatory approvals not including the lapse of any
required waiting periods; or

                              (D)
a plan of liquidation of the Company or an agreement
for the sale or liquidation of the Company is approved and completed; or

                              (E)
the Board determines in its sole discretion that a
Change in Control has occurred, whether or not any event described above has
occurred or is contemplated.

                    b.
Benefits Upon Change of Control. If,
within a period beginning six (6) months before, and ending twelve (12) months
after, the date of a Change of Control (the “Change Period”), Executive’s
employment with the Company is (i) terminated without Cause (as described
in Section 5b above) by the Company (or by the acquiring or successor
business entity following a Change of Control), or (ii) terminated for
Good Reason (as described in Section 5f above) by Executive: (A) the Company
shall pay to Executive any earned and accrued but unpaid installments of base
salary and bonus and any other accrued but unpaid amounts due to Executive
under Section 4 above through the date of termination; and, subject to the
provisions of Sections 15 and 27, (B) the Company shall pay to Executive
as severance pay and in lieu of any further compensation for periods subsequent
to the termination an amount in cash equal to two times Executive’s base salary
(based on Executive’s monthly salary on the date of the Change of Control) and
two times Executive’s average annual bonus, computed as the

Page 6

average of the last three (3) years bonus received by Executive (if
three years of bonus history is not available, then the most recent annually
paid or targeted bonus will be used); and (C) Executive shall continue to
participate in Company-provided medical or health insurance or benefit plans,
at no cost to Executive, for twenty-four (24) months after the date of
termination; provided however, that if applicable law or the terms of the plan
prohibit the continued participation of Executive or his dependents for all or
part of such period, the Company shall make a cash payment to Executive that is
sufficient, on an after-tax basis, to reimburse Executive for obtaining
insurance that provides substantially the same benefits as the Company-provided
medical or health insurance or benefit plan over the same one-year period. The
Company shall pay the severance payment referenced in this paragraph in equal
monthly installments over a period of twenty-four (24) months beginning thirty
(30) days after the date of termination. In addition to the foregoing, on the
date of a Change of Control, all of Executive’s unvested restricted shares, and
equity interests shall vest and be exercisable and all restrictions on the
transfer of any shares or equity interests shall lapse as of the date of the
Change of Control and any such awards that include an exercise period shall
remain exercisable until the earlier of the expiration date of such award or
the first anniversary of the date of termination. 

          Notwithstanding
the foregoing, if, in connection with a transaction that technically meets, or
may meet, the definition of “Change of Control” as set forth in subsection a.
above, Executive’s employment by the Company or a successor to the Company is
terminated, but Executive is immediately re-hired or otherwise becomes an
employee of a successor to the Company or surviving company in such a
transaction, including, by way of example, a “going private” transaction in
which the Company’s equity securities are no longer publicly traded, no
benefits shall be payable to Executive under this subsection b and the
Agreement will be assumed by the Company or a successor to the Company. 

          7.
 No Mitigation or Offset. Executive shall
not be required to mitigate the amount of any payment provided for in
Section 5 or Section 6 of this Agreement by seeking other employment
or otherwise. The Company shall not be entitled to set off or reduce any
severance payments owed to Executive under this Agreement by the amount of
earnings or benefits received by Executive in future employment.

          8.
Non-Disclosure. During the Employment Period, the
Company agrees to provide Confidential Information to Executive and Executive
agrees to retain any Confidential Information in strict confidence, and shall
not furnish, make available or disclose to any third party or use for the
benefit of himself or any third party, except in the furtherance of his job
duties with the Company. Executive shall not, at any time after his employment
with the Company has ended (for whatever reason), use or divulge to any person
or entity, directly or indirectly, any Confidential Information, or use any Confidential
Information in subsequent employment, business or work of any nature,
regardless of when Executive obtained access to or knowledge of such
Confidential Information. As used in this Agreement, “Confidential Information”
shall mean any information relating to the business or affairs of the Company
and its affiliates and predecessors, including information, observations and
data obtained by Executive at any time during his employment with the Company,
including before and during the course of his performance under this Agreement.
Confidential Information includes, without specific limitation, trade secrets,
information relating to financial statements, operations manuals, systems
manuals, property or market evaluations or analyses, customer identities,
customer 

Page 7

profiles, customer preferences, partner or investor identities,
employees, suppliers, properties, prospective properties, project designs,
project methods, advertising programs, acquisition plans and information,
expansion plans and information, advertising techniques, target markets,
servicing methods, equipment, programs, strategies and information, market
analyses, profit margins, pricing information, cost structure, past, current or
future marketing strategies, information development by contractors or
consultants, or any other proprietary information used by the Company or its
affiliates; provided, however, that Confidential Information shall not include
any information which is in the public domain or becomes known in the industry
through no wrongful act on the part of Executive. Executive acknowledges that
the Confidential Information is vital, sensitive, confidential and proprietary
to the Company and that he is under a contractual and common law duty to not
disclose the Confidential Information to any third party at any time, except as
otherwise required by law, rule or regulation. Executive acknowledges and
agrees that his non-disclosure obligation applies to all Confidential
Information of the Company, no matter when he obtained knowledge of or access
to such Confidential Information. If Executive is subpoenaed, or is otherwise
required by law to testify concerning Confidential Information, Executive
agrees to promptly notify Company upon receipt of a subpoena, or upon belief that
such testimony shall be required.

          9.
Non-Competition. During
the Employment Period and for an additional period of one (1) year following
the termination of his employment by the Company for Cause ( as described in
Section 5a above) or the voluntary termination of employment by Executive (as
described in Section 5c above) (the “Noncompetition Term”), Executive agrees
not to, directly or indirectly, either through any form of ownership or as an
individual, director, officer, principal, agent, employee, employer, adviser,
consultant, shareholder, partner, member or in any other individual or
representative capacity whatsoever, either for his own benefit or for the benefit of any person or entity,
without the prior written consent of the Company (which consent may be withheld
in its sole discretion), engage in any manner in the Business (as defined
below) in the metropolitan areas of Houston, Austin, Dallas or San Antonio,
Texas or any other metropolitan area in the United States where the Company owns
or leases more than $10 million in gross asset value of assets as of the date
of this Agreement or as of the date of termination. For purposes of this
Section 9, “Business” means the acquisition, development, management,
ownership, leasing and/or disposition of retail shopping centers and/or any
capital raising activities related thereto. 

          Executive
understands and agrees that his covenants contained in this Section 9 are
being given in consideration of the numerous mutual promises and agreements
contained in this Agreement between the Company and Executive, including,
without limitation, those involving, employment, compensation, and Confidential
Information, and in order to protect the Company’s Confidential Information and
other legitimate business interests and to reduce the likelihood of irreparable
damage which would occur in the event such information is provided to or used
by a competitor of the Company. 

          Notwithstanding
the foregoing, Executive shall not be deemed to have violated this
Section 9 solely by reason of his passive ownership of ten percent (10%)
or less of the outstanding equity interests of any public entity. 

          Executive
hereby acknowledges that the geographic boundaries, scope of prohibited
activities and the time duration of the provisions of this Section 9 are
reasonable and are no

Page 8

broader than are necessary to protect the legitimate business interests
of the Company. This noncompetition provision can only be revoked or modified
by a writing signed by both Executive and the Chief Executive Officer of the
Company, as approved by the Board, which specifically states an intent to
revoke or modify this provision. Executive acknowledges that the Company would
not employ him or provide him with access to its Confidential Information but
for his covenants or promises contained in this Section. 

          The Company
and Executive agree and stipulate that the agreements and covenants not to
compete contained in this Section 9 hereof are fair and reasonable in
light of all of the facts and circumstances of the relationship between
Executive and the Company; provided however, Executive and the Company are
aware that in certain circumstances courts have refused to enforce certain
terms of agreements not to compete. Therefore, in furtherance of, and not in
derogation of the provisions of this Section 9, the Company and Executive
agree that in the event a court should decline to enforce any terms of any of
the provisions of this Section 9, that this Section 9 shall be deemed
to be modified or reformed to restrict Executive’s competition with the Company
to the maximum extent, as to time, geography and business scope, which the
court shall find enforceable; provided however, in no event shall the
provisions of this Section 9 be deemed to be more restrictive to Executive
than those contained herein. 

          Executive
agrees that during the Noncompetition Term, he shall immediately notify the
Company in writing of any employment, work or business he undertakes with or on
behalf of any person (including himself) or entity, whether or not for
compensation. 

          10.
Non-Interference or Solicitation. Executive agrees
that during the Employment Period and for an additional period of one (1) year
following the termination of his employment with the Company (for whatever
reason) that neither he nor any individual, partner(s), limited partnership,
corporation or other entity or business in which Executive has any affiliation
and influence, or any employee of such entity or business that Executive
influences, will request, solicit, encourage, induce or attempt to influence,
directly or indirectly, (i) any employee of the Company to terminate his
or her employment with the Company, or (ii) any past or present customer,
client, partner, investor or contractor of the Company to terminate or limit
his, her or its relationship with the Company, or in any way interfere with the
relationship between the Company and any such customer, client, partner,
investor or contractor. 

          11.
Non-Disparagement. During Executive’s employment and
upon the termination of Executive’s employment with the Company for any reason,
Executive and Company shall not make any disparaging or defamatory statements,
whether written or verbal, regarding the Company or the Executive.

          12.
Return of Documents. Executive agrees that if
Executive’s employment with the Company is terminated (for whatever reason),
Executive shall not take with Executive, but will leave with the Company, all,
Confidential Information, records, files, memoranda, reports, documents and
other information that is the property of the Company, in whatever form
(including on computer disk), and any copies thereof, or if such items are not
on the premises of the Company, Executive agrees to return such items
immediately upon Executive’s termination or any time at the request of the
Company. Executive acknowledges that all such items are and remain the property
of the Company. 

Page 9

          13.
Severability and Reformation. If any provision of this
Agreement is held to be illegal, invalid or unenforceable under any present or
future law, and if the rights or obligations of Executive or the Company under
this Agreement would not be materially and adversely affected thereby, such
provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part thereof, the remaining provisions of this Agreement shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom, and in lieu of
such illegal, invalid or unenforceable provision, there shall be added
automatically as a part of this Agreement a legal, valid and enforceable
provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible, and the Company and Executive hereby request the
court to whom disputes relating to this Agreement are submitted to reform the
otherwise unenforceable provision in accordance with this Section 13. 

          14.
Injunctive Relief. Executive
acknowledges that the breach of any of the covenants contained herein,
including, without limitation, the non-disclosure covenants contained in Section 8,
the non-competition covenants in Section 9 and the non-interference or
solicitation covenants in Section 10, will give rise to injury to the
Company. Accordingly, Executive agrees that the Company shall be entitled to
injunctive relief to prevent or cure breaches or threatened breaches of the
provisions of this Agreement and to enforce specific performance of the terms
and provisions hereof in any court of competent jurisdiction, in addition to
any other legal or equitable remedies, which may be available. Executive
further acknowledges and agrees that the enforcement of a remedy hereunder by
way of injunction shall not prevent Executive from earning a reasonable
livelihood. Executive further acknowledges and agrees that the covenants
contained herein are necessary for the protection of the Company’s legitimate
business interests and are reasonable in scope and content. Nothing herein
shall prevent either party from pursuing a legal and/or equitable action
against the other party for any damages caused by such party’s breach of this
Agreement. 

          15.
Release Agreement. Executive
agrees that, as a condition to receiving any severance benefits or payments
under this Agreement, including those referenced in Sections 5 or 6 of this
Agreement, Executive shall execute a general release agreement (the “Release”)
in a form reasonably acceptable to the Company, which shall include, without
limitation, a waiver and release of all claims arising out of Executive’s
service as an employee of the Company, its subsidiaries or any of their
affiliates and the termination of such relationship. Such claims include all
claims based on any federal, state or local statute, including without
limitation the Age Discrimination in Employment Act of 1967, as amended, Title VII
of the Civil Rights Act of 1964, as amended, the Civil rights Act of 1991, as
amended, the Employee Retirement Income Security Act of 1974, as amended, the
Sarbanes-Oxley Act, and the Texas Commission on Human Rights Act. Such release
agreement shall also contain a mutual non-disparagement provision. In the event
Executive has not executed the Release, and all applicable revocation periods
related thereto have not expired, prior to the date any payment is scheduled to
be made under Section 5 or 6 hereof, Executive shall forfeit such payment.

          16.
Headings. The headings used in this Agreement have
been inserted for convenience and do not constitute matter to be construed or
interpreted in connection with this Agreement. 

Page 10

          17.
Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING
EFFECT TO ANY PRINCIPLE OF CONFLICT OF LAWS THAT WOULD REQUIRE THE APPLICATION
OF THE LAW OF ANY OTHER JURISDICTION. 

          18.
Venue. The
venue for any dispute arising out of this Agreement or Executive’s employment
with the Company shall be any state or federal court of competent jurisdiction
in Harris County, Texas. Each party consents to the personal jurisdiction of
the state and federal courts of said county and waives any objection that such
courts are an inconvenient forum. 

          19.
Survival. Except as otherwise provided herein,
Executive’s termination from employment and/or the termination of this
Agreement, for whatever reason, shall not reduce or terminate Executive’s or
the Company’s covenants and agreements set forth herein. 

          20.
Notices. Any notice necessary under this Agreement
shall be in writing and shall be considered delivered three days after mailing
if sent certified mail, return receipt requested, or when received, if sent by
telecopy, prepaid courier, express mail or personal delivery to the following
addresses:

	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Company:

 
	
  

 	
  

 
	
  

 	
  

 	
 8 Greenway
 Plaza

 
	
  

 	
  

 	
 Suite 1000

 
	
  

 	
  

 	
 Houston,
 Texas 77046

 
	
  

 	
  

 	
 Attention:
 Chief Financial Officer

 
	
  

 	
  

 	
 Telecopy:
 (713) 850-0498

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Executive:

 
	
  

 	
  

 	
 Tenel H.
 Tayar

 
	
  

 	
  

 	
 82 Towering
 Pines Drive

 
	
  

 	
  

 	
 The
 Woodlands, Texas 77381

 

          21.
Entire Agreement. Except as provided herein, this
Agreement embodies the entire agreement and understanding of the parties hereto
in respect of the subject matter contained herein and supersedes all prior
conflicting or inconsistent agreements, consents and understandings relating to
such subject matter. The parties acknowledge and agree that there is no oral or
other agreement between the Company and Executive, which has not been
incorporated in this Agreement. This Agreement may only be modified pursuant to
Section 25. 

          22.
No Waiver. The forbearance or failure of one of the
parties hereto to insist upon strict compliance by the other with any
provisions of this Agreement, whether continuing or not, shall not be construed
as a waiver of any rights or privileges hereunder. No waiver of any right or
privilege of a party arising from any default or failure hereunder of
performance by the other shall affect such party’s rights or privileges in the
event of a further default or failure of performance. 

Page 11

          23.
Assignment. This Agreement shall be binding upon and
inure to the benefit of the Company’s successors and Executive’s personal or
legal representatives, executors, administrators, heirs, distributees, devisees
and legatees. This Agreement shall not be assignable by Executive, it being
understood and agreed that this is a contract for Executive’s personal
services. This Agreement shall not be assignable by the Company except that the
Company shall require any successor to all or substantially all of the
Company’s business or assets whether direct or indirect, by purchase, merger,
consolidation or otherwise), 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. Failure of the Company
to obtain such assumption and agreement as part of any such succession shall be
a breach of this Agreement and shall entitle Executive to resign from the
employ of the Company and to receive the termination benefits hereunder as if
he terminated his employment for Good Reason. References in this Agreement to
the “Company” include the Company as hereinbefore defined and any successor to
the Company’s business, assets or both. 

          24.
Binding Effect. This Agreement shall be binding on and
inure to the benefit of the parties and their respective permitted successors
and assigns. 

          25.
Modification. This Agreement may be modified only by a
written agreement signed by both parties. Any such written modification may
only be signed by Chief Executive Officer of the Company. 

          26.
Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original
instrument, and all of which together shall constitute one and the same
Agreement. 

          27.
Section 409A. Notwithstanding
anything herein to the contrary, to the maximum extent permitted by applicable
law, the payments to be made to Executive pursuant to Sections 5 and 6 shall be
made in reliance upon Treasury Regulations promulgated under Section 409A of
the Code, including Section 1.409A-1(b)(9) of the Treasury Regulations and
Section 1.409A-1(b)(4) of the Treasury Regulations. For this purpose, each
installment of such payments shall be considered a separate and distinct
payment for purposes of Section 409A of the Code. However, to the extent any
such payments are treated as non-qualified deferred compensation subject to
Section 409A of the Code, then (a) no amount shall be payable pursuant to
Sections 5 or 6 hereof unless Executive’s termination of employment constitutes
a “separation from service” within the meaning of Section 1.409A-1(h) of the
Treasury Regulations and (b) if Executive is deemed at the time of his
separation from service to be a “specified employee” for purposes of Section
409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any
portion of the payments to which Executive is entitled under this Agreement is
required in order to avoid a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code, such portion of Executive’s payments shall not be
provided to Executive prior to the earlier of (x) the expiration of the
six-month period measured from the date of Executive’s “separation from
service” with the Company (as such term is defined in Section 1.409A-1(h) of
the Treasury Regulations) or (y) the date of Executive’s death. Upon the
earlier of such dates, all payments deferred pursuant to this paragraph shall
be paid in a lump sum to Executive, and any remaining payments due under the
Agreement shall be paid as otherwise provided herein. The determination of
whether Executive is a “specified employee” for purposes of Section 

Page 12

409A(a)(2)(B)(i) of the Code as of the time of his separation from
service shall be made by the Company in accordance with the terms of Section
409A of the Code and applicable guidance thereunder (including without
limitation Section 1.409A-1(i) of the Treasury Regulations and any successor
provision thereto). Any reimbursements of health insurance premiums contemplated
by this Agreement shall be made in accordance with the timing rules set forth
in the Regulations promulgated under Section 409A of the Code.

          The parties
acknowledge and agree that, to the extent applicable, this Agreement shall be
interpreted in accordance with, and the parties agree to use their best efforts
to achieve timely compliance with, Section 409A of the Code and the Treasury
Regulations and other interpretive guidance issued thereunder. Notwithstanding
any provision of this Agreement to the contrary, in the event that the Company
determines that any compensation or benefits payable or provided under this
Agreement may be subject to Section 409A of the Code, the Company may, with the
consent of Executive, adopt such limited amendments to this Agreement and
appropriate policies and procedures, including those with retroactive effect,
that the Company reasonably determines are necessary or appropriate to (i)
exempt the compensation and benefits payable under this Agreement from Section 409A
of the Code and/or preserve the intended tax treatment of the compensation and
benefits provided with respect to this Agreement or (ii) comply with the
requirements of Section 409A of the Code. By accepting this agreement,
Executive hereby agrees and acknowledges that the Company makes no
representations with respect to the application of Section 409A of the Code to
any tax, economic, or legal consequences of any payments payable to Executive
hereunder and, by the acceptance of this Agreement, Executive agree to accept
the potential application of Section 409A of the Code to the tax and legal
consequences of payments payable to Employee hereunder. 

          IN WITNESS
WHEREOF, the parties hereto have executed this Executive Employment Agreement
as of the day and year first above written. 

	
  

 	
  

 
	
  

 	
 /s/ Tenel H.
 Tayar

 
	
  

 	
 Tenel H.
 Tayar

 
	
  

 	
  

 
	
  

 	
 AmREIT, Inc.

 
	
  

 	
  

 
	
  

 	
 /s/ H. Kerr
 Taylor

 
	
  

 	
 By: H. Kerr
 Taylor

 
	
  

 	
 Title: Chief
 Executive Officer

 

Page 13Exhibit
10.4

EXECUTIVE EMPLOYMENT AGREEMENT

          This
Employment Agreement (“Agreement”) is entered into this 29th day of March,
2011, by and between Charles A. Scoville (“Executive”) and AmREIT, Inc. (the
“Company”). 

RECITALS

          In
consideration of the mutual covenants set forth herein and other good and
valuable consideration, the receipt and sufficiency of which the parties
acknowledge, the Company and Executive, intending to be legally bound, hereby
agree as follows:

          1.
 Employment
Term. The Company agrees to employ Executive
and Executive hereby accepts such employment from the Company upon the terms
and conditions set forth in this Agreement for the period beginning on the date
hereof and continuing until December 31, 2012 (unless otherwise terminated
earlier in accordance with Section 5 hereof) (“Initial Employment
Period”). Upon the expiration of the Initial Employment Period, this Agreement
shall be automatically renewed for consecutive one-year periods unless either
party provides a written notice of non-renewal to the other party at least one
hundred eighty (180) days prior to the end of the Initial Employment Period or
any additional one-year period (the “Renewal Employment Period”) (the Initial
Employment Period and any Renewal Employment Periods shall be referred to
collectively herein as the “Employment Period”). A notice of non-renewal
provided by the Company shall not constitute a termination without Cause under
Section 5(b) and does not result in non-competition by the Executive under
Section 9. 

          2.
Nature of Duties. Executive shall be employed as the
Company’s Senior Vice President and Director of Real Estate Operations with job
responsibilities related thereto, and such job responsibilities may be modified
from time to time at the sole discretion of the Chief Executive Officer or the
Board of Directors of the Company (“Board”). Executive shall report to the
Chief Executive Officer and shall devote his full time efforts to the faithful
performance of his duties on behalf of the Company. Executive shall not engage
in additional gainful employment of any kind or undertake any role or position,
other than charitable or civic activities, whether or not for compensation,
with any person or entity during the Employment Period without advance written
approval of the Chief Executive Officer or the Board. Executive shall perform
his duties at or within a reasonable vicinity of Houston, Texas, except for
required travel on the Company’s business. 

          3.
Adherence to Company Rules. Executive,
at all times during the Employment Period, shall strictly adhere to and obey
all of the Company’s written rules, regulations and policies, which will be
provided to Executive and are now in effect, or as are subsequently 

adopted or modified by the Company and provided to Executive, which
govern the operation of the Company’s business and the conduct of employees of
the Company. 

          4.
Compensation and Benefits. 

                    a.
Base Salary.
During the Employment Period, Executive shall receive an annual base salary of
$180,500, payable in equal installments in accordance with the Company’s normal
payroll procedures. Executive’s salary shall be subject to all applicable
federal and state withholding taxes. Executive’s salary may be increased by the
CEO and the Compensation Committee of the Company’s Board of Directors
(“Compensation Committee”) at any time in their discretion. 

                    b.
Incentive Compensation. During the Employment Period, Executive will be eligible to
participate in any annual performance incentive or bonus program, as approved
by the CEO and the Compensation Committee in their discretion, based on Company
and individual performance goals. Any incentive or bonus compensation for any
year shall be paid on or before March 15 of the following year based on
Executive’s achievement of pre-established goals. Executive must be an employee
on the payment date for the bonus or incentive to be considered “earned or
accrued”, other than production-based bonuses, which are considered “earned or
accrued” as the production goals are met. Executive shall not be entitled to
earn any incentive compensation or bonuses hereunder after the termination of
this Agreement.

                    c.
Standard Benefits. During the Employment Period,
Executive shall be entitled to participate in all employee benefit plans and
programs, including paid vacations, generally available to other similarly
situated Company executives, subject to the terms and conditions of the
applicable plans. 

                    d.
Expenses. During the Employment Period, Executive
shall be entitled to receive prompt reimbursement for all reasonable and
customary travel and business expenses he incurs in connection with his
employment hereunder. Executive must account for those expenses in accordance
with the policies and procedures established by the Company. 

                    e.
Restricted Equity. During the Employment Period,
Executive may, within the sole discretion of the CEO and the Compensation
Committee, be eligible to participate in such restricted share plans that the
Company may establish from time to time in the future, subject to the terms and
conditions of the applicable plan. 

                    f.
Vacation.
Executive shall be entitled to vacation in each calendar year, together with
leave of absence and leave for illness or temporary disability in accordance
with the policies of the Company in effect from time to time; provided however
that Executive shall not be permitted to carry over more than 40 hours of
unused vacation time from year to year. 

          5.
Termination. In addition to non-renewal as set forth
in Section 1 of this Agreement, the Company or Executive may terminate
this Agreement and Executive’s employment as provided below:

Page 2

                    a.
Termination by the Company for Cause. The Company
shall have the right to terminate Executive’s employment and this Agreement at
any time for any of the following reasons (each of which is referred to herein as
“Cause”):

                              (A)
continued failure by Executive (other than for reason
of mental or physical illness), after notice by the Company, to perform
Executive’s duties;

                              (B)
intentional misconduct or gross negligence in the
performance of Executive’s duties;

                              (C)
any act by Executive of fraud or dishonesty with
respect to any aspect of the Company’s business including, but not limited to,
falsification of Company records;

                              (D)
conviction of Executive of a felony (or a plea of nolo contendere with respect thereto); 

                              (E)
acceptance by Executive of employment with another
employer; or 

                              (F)
Executive’s breach of Sections 8, 9, 10 or 11 of this
Agreement.

          If the
Company terminates Executive’s employment for any of the reasons set forth
above: (A) the Company shall within ten (10) days following the date of
termination, pay Executive any earned and accrued but unpaid installments of
base salary and any other accrued and unpaid amounts due to Executive under
Section 4 above through the date of termination, and the Company shall
have no further obligations to Executive hereunder from and after the date of
termination; and (B) all of Executive’s outstanding stock awards or other
equity grants shall continue to be governed by the terms and conditions of the
applicable grant agreement and any related plan. 

                    b.
Termination by the Company Without Cause. The Company
shall have the right to terminate Executive’s employment without Cause by
giving Executive not less than thirty (30) days’ prior written notice and in
such event, the Company shall pay Executive (i) any earned and accrued but
unpaid compensation and benefits and any other accrued and unpaid amounts due
to Executive under Section 4 above through the date of termination and,
subject to the provisions of Sections 15 and 27, (ii) a severance payment
equal to one (1) times Executive’s annual base salary (based on Executive’s
monthly salary on the date of termination) and one (1) times Executive’s
average annual bonus, computed as the average of the last three (3) years bonus
received by Executive (if three years of bonus history is not available, then
the most recent annually paid or targeted bonus will be used). The Company
shall pay the severance payment referenced in this paragraph in equal monthly
installments over a period of twelve (12) months beginning thirty (30) days
following the date of termination. In addition, all of Executive’s unvested
restricted shares and equity interests shall continue to be governed by the
terms and conditions of any applicable grant agreement and any related plan. In
addition, upon a termination pursuant to this subsection b., Executive shall be
entitled to continue to participate in Company-provided medical or health
insurance or benefit plans, at no cost to Executive, for one (1) year after the
date of termination; provided, however, that if applicable law or the terms of
the plan prohibit the continued participation of Executive or his dependents
for all or part of such period, the Company shall make a cash payment to
Executive that is sufficient, on an after-tax

Page 3

basis, to reimburse Executive for obtaining insurance that provides
substantially the same benefits as the Company-provided medical or health
insurance or benefit plan over the same one-year period. 

                    c.
Voluntary Termination by Executive. Except as provided
in Section 5(f), Section 5(g) and Section 6(a) below, in the event that Executive’s employment with the
Company is voluntarily terminated by Executive for any reason, the Company
shall pay Executive any earned and accrued but unpaid installments of base
salary and any other accrued and unpaid amounts due to Executive under
Section 4 above through the date of termination, and the Company shall
have no further obligations hereunder from and after the date of such
termination and the Company and Executive shall have all other rights and
remedies available under this Agreement or any other agreement and at law or in
equity. 

                    d.
Termination Upon Death. In the event that Executive
shall die during the Employment Period, (i) within thirty (30) days following
the date of death, the Company shall pay to Executive’s estate (A) any earned
and accrued but unpaid installments of base salary and bonus, any accrued but
unpaid vacation benefit and any other accrued and unpaid amounts due to Executive
under Section 4 above through the date of Executive’s death and (ii) all
of Executive’s unvested restricted shares and equity interests shall continue
to be governed by the terms and conditions of any applicable grant agreement
and any related plan. Executive shall be entitled to participate in the
Company’s life insurance program.

                    e.
Termination Upon Disability. In the event that
Executive shall become Disabled (as defined below) during the Employment
Period, the Company may terminate Executive’s employment hereunder by giving
Executive not less than thirty (30) days’ prior written notice of the effective
date of termination and in such event, the Company shall pay Executive any
earned and accrued but unpaid installments of base salary and any other accrued
and unpaid amounts due to Executive under Section 4 above through the date
of termination. In addition, all of Executive’s unvested restricted shares and
equity interests shall continue to be governed by the terms and conditions of any
applicable grant agreement and any related plan. For purposes of this
Agreement, Executive shall become “Disabled” if he shall become, because of
illness or incapacity, unable to perform the essential functions of his job
under this Agreement, with or without reasonable accommodation, for a
continuous period of ninety (90) days during the Employment Period. 

                    f.
Termination by Executive for Good
Reason. Executive may terminate his employment
hereunder for Good Reason (as defined below) at any time during the Employment
Period by delivery of written notice to the Company of such termination at
least thirty (30) days prior to the effective date of termination and in such
event, the Company shall pay Executive (i) any earned and accrued but
unpaid compensation and benefits and any other accrued but unpaid amounts due
to Executive under Section 4 above through the date of termination and,
subject to the provisions of Sections 15 and 27, (ii) a severance payment
equal to one (1) times Executive’s annual base salary (based on Executive’s
monthly salary on the date of termination) and one (1) times Executive’s
average annual bonus, computed as the average of the last three (3) years bonus
received by Executive (if three years of bonus history is not available, then
the most recent annually paid or targeted bonus will be used). The Company
shall pay the severance payment referenced in this paragraph in equal monthly
installments over 

Page 4

a period of twelve (12) months beginning thirty (30) days after the
date of termination. In addition, all of Executive’s unvested restricted shares
and equity interests shall continue to be governed by the terms and conditions
of any applicable grant agreement and any related plan. 

          For purposes of this Agreement, “Good Reason” shall mean any one or
more of the following:

                              (A)
a reduction by the Company, without Executive’s
consent, in Executive’s position, duties, responsibilities or status with the
Company that represents a substantial adverse change from his position, duties,
responsibilities or status, but specifically excluding any action in connection
with the termination of Executive’s employment for death, Disability (as
defined herein), Cause (as defined herein) or by Executive for Normal
Retirement (as defined herein); provided, however, that the Company (i) hiring
or promoting of one or more new or existing employees to whom Executive may
report or (ii) otherwise undertaking an internal reorganization that results in
Executive reporting to a new or different person shall not be considered “Good
Reason” for purposes of this subsection (A);

                              (B)
the Company requiring, as a condition of employment,
Executive to relocate his employment more than fifty (50) miles from the
location of Executive’s principal office on the date of this Agreement, without
the consent of Executive;

                              (C)
any willful and material breach by the Company (or by
the acquiring or successor business entity) of any material provision of this
Agreement or any other agreement between the Company or any of its subsidiaries
and Executive that, in any case, is not cured within thirty (30) days of the
Company’s receipt of written notice from Executive of such breach; or

                              (D)
the failure by the Company to obtain the assumption of
this Agreement by any successor or assign of the Company. 

                    g.
Termination Upon Normal Retirement. In the event that
Executive’s employment terminates by reason of his Normal Retirement during the
Employment Period, (i) the Company shall pay to Executive any earned and
accrued but unpaid installments of base salary and bonus, any accrued but
unpaid vacation benefit and any other accrued and unpaid amounts due to
Executive under Section 4 above through the date of termination, and (ii)
all of Executive’s unvested restricted shares and equity interests shall vest
and be exercisable and all restrictions on the transfer of any shares or equity
interests shall lapse as of the date of Executive’s termination, and otherwise
shall continue to be governed by the terms and conditions of any applicable
grant agreement and any related plan. The Company shall have no further
obligations hereunder from and after the date of such termination. For purposes
of this Agreement, “Normal Retirement” means Executive’s voluntary termination
of employment with the Company after attaining age 65.

          6.
Change of Control.

                    a.
Change of Control.
For purposes of this Agreement, unless the Board determines otherwise, a
“Change of Control” of the Company shall be deemed to have occurred at such
time as:

Page 5

                              (A)
any “person” (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as
modified and used in Sections 13(d) and 14(d) thereof) or group of persons
together with its affiliates, but excluding (i) the Company or any of its
subsidiaries, (ii) any employee benefit plans of the Company, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership
of stock of the Company, is or becomes, directly or indirectly, the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the
Company representing fifty percent (50%) or more of the combined voting power
of the Company’s then outstanding securities (not including in the securities
beneficially owned by such person any securities acquired directly from the
Company); or

                              (B)
the following individuals cease for any reason to
constitute a majority of the number of directors then serving: individuals who,
on the date hereof, constitute the Board and any new director (other than a
director whose initial assumption of office is in connection with an actual or
threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of the Company) whose
appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or

                              (C)
a plan of reorganization, merger, consolidation, sale
of all or substantially all of the assets of the Company or similar transaction
is approved or occurs or is effectuated pursuant to which the Company is not
the resulting or surviving entity; provided, however, that such an event listed
above will be deemed to have occurred or to have been effectuated only upon
receipt of all required regulatory approvals not including the lapse of any
required waiting periods; or

                              (D)
a plan of liquidation of the Company or an agreement
for the sale or liquidation of the Company is approved and completed; or

                              (E)
the Board determines in its sole discretion that a
Change in Control has occurred, whether or not any event described above has occurred
or is contemplated.

                    b.
Benefits Upon Change of Control. If,
within a period beginning six (6) months before, and ending twelve (12) months
after, the date of a Change of Control (the “Change Period”), Executive’s
employment with the Company is (i) terminated without Cause (as described
in Section 5b above) by the Company (or by the acquiring or successor
business entity following a Change of Control), or (ii) terminated for
Good Reason (as described in Section 5f above) by Executive: (A) the Company
shall pay to Executive any earned and accrued but unpaid installments of base
salary and bonus and any other accrued but unpaid amounts due to Executive
under Section 4 above through the date of termination; and, subject to the
provisions of Sections 15 and 27, (B) the Company shall pay to Executive
as severance pay and in lieu of any further compensation for periods subsequent
to the termination an amount in cash equal to two times Executive’s base salary
(based on Executive’s monthly salary on the date of the Change of Control) and
two times Executive’s average annual bonus, computed as the 

Page 6

average of the last three (3) years bonus received by Executive (if
three years of bonus history is not available, then the most recent annually
paid or targeted bonus will be used); and (C) Executive shall continue to
participate in Company-provided medical or health insurance or benefit plans,
at no cost to Executive, for twenty-four (24) months after the date of
termination; provided however, that if applicable law or the terms of the plan
prohibit the continued participation of Executive or his dependents for all or
part of such period, the Company shall make a cash payment to Executive that is
sufficient, on an after-tax basis, to reimburse Executive for obtaining
insurance that provides substantially the same benefits as the Company-provided
medical or health insurance or benefit plan over the same one-year period. The
Company shall pay the severance payment referenced in this paragraph in equal
monthly installments over a period of twenty-four (24) months beginning thirty
(30) days after the date of termination. In addition to the foregoing, on the
date of a Change of Control, all of Executive’s unvested restricted shares, and
equity interests shall vest and be exercisable and all restrictions on the
transfer of any shares or equity interests shall lapse as of the date of the
Change of Control and any such awards that include an exercise period shall
remain exercisable until the earlier of the expiration date of such award or
the first anniversary of the date of termination. 

          Notwithstanding the foregoing, if, in connection with a transaction
that technically meets, or may meet, the definition of “Change of Control” as
set forth in subsection a. above, Executive’s employment by the Company or a
successor to the Company is terminated, but Executive is immediately re-hired
or otherwise becomes an employee of a successor to the Company or surviving
company in such a transaction, including, by way of example, a “going private”
transaction in which the Company’s equity securities are no longer publicly
traded, no benefits shall be payable to Executive under this subsection b and
the Agreement will be assumed by the Company or a successor to the Company. 

          7.
No Mitigation or Offset. Executive
shall not be required to mitigate the amount of any payment provided for in
Section 5 or Section 6 of this Agreement by seeking other employment
or otherwise. The Company shall not be entitled to set off or reduce any
severance payments owed to Executive under this Agreement by the amount of
earnings or benefits received by Executive in future employment.

          8.
Non-Disclosure. During the Employment Period, the
Company agrees to provide Confidential Information to Executive and Executive
agrees to retain any Confidential Information in strict confidence, and shall
not furnish, make available or disclose to any third party or use for the
benefit of himself or any third party, except in the furtherance of his job duties
with the Company. Executive shall not, at any time after his employment with
the Company has ended (for whatever reason), use or divulge to any person or
entity, directly or indirectly, any Confidential Information, or use any
Confidential Information in subsequent employment, business or work of any
nature, regardless of when Executive obtained access to or knowledge of such
Confidential Information. As used in this Agreement, “Confidential Information”
shall mean any information relating to the business or affairs of the Company
and its affiliates and predecessors, including information, observations and
data obtained by Executive at any time during his employment with the Company,
including before and during the course of his performance under this Agreement.
Confidential Information includes, without specific limitation, trade secrets,
information relating to financial statements, operations manuals, systems
manuals, property or market evaluations or analyses, customer identities,
customer 

Page 7

profiles, customer preferences, partner or investor identities,
employees, suppliers, properties, prospective properties, project designs,
project methods, advertising programs, acquisition plans and information,
expansion plans and information, advertising techniques, target markets,
servicing methods, equipment, programs, strategies and information, market
analyses, profit margins, pricing information, cost structure, past, current or
future marketing strategies, information development by contractors or
consultants, or any other proprietary information used by the Company or its
affiliates; provided, however, that Confidential Information shall not include
any information which is in the public domain or becomes known in the industry
through no wrongful act on the part of Executive. Executive acknowledges that
the Confidential Information is vital, sensitive, confidential and proprietary
to the Company and that he is under a contractual and common law duty to not
disclose the Confidential Information to any third party at any time, except as
otherwise required by law, rule or regulation. Executive acknowledges and
agrees that his non-disclosure obligation applies to all Confidential
Information of the Company, no matter when he obtained knowledge of or access
to such Confidential Information. If Executive is subpoenaed, or is otherwise
required by law to testify concerning Confidential Information, Executive
agrees to promptly notify Company upon receipt of a subpoena, or upon belief
that such testimony shall be required.

          9.
Non-Competition. During
the Employment Period and for an additional period of one (1) year following
the termination of his employment by the Company for Cause ( as described in
Section 5a above) or the voluntary termination of employment by Executive (as
described in Section 5c above) (the “Noncompetition Term”), Executive agrees
not to, directly or indirectly, either through any form of ownership or as an
individual, director, officer, principal, agent, employee, employer, adviser,
consultant, shareholder, partner, member or in any other individual or
representative capacity whatsoever, either for his own benefit or for the benefit of any person or entity,
without the prior written consent of the Company (which consent may be withheld
in its sole discretion), engage in any manner in the Business (as defined
below) in the metropolitan areas of Houston, Austin, Dallas or San Antonio,
Texas or any other metropolitan area in the United States where the Company
owns or leases more than $10 million in gross asset value of assets as of the
date of this Agreement or as of the date of termination. For purposes of this
Section 9, “Business” means the acquisition, development, management,
ownership, leasing and/or disposition of retail shopping centers and/or any
capital raising activities related thereto. 

          Executive
understands and agrees that his covenants contained in this Section 9 are
being given in consideration of the numerous mutual promises and agreements
contained in this Agreement between the Company and Executive, including,
without limitation, those involving, employment, compensation, and Confidential
Information, and in order to protect the Company’s Confidential Information and
other legitimate business interests and to reduce the likelihood of irreparable
damage which would occur in the event such information is provided to or used
by a competitor of the Company. 

          Notwithstanding
the foregoing, Executive shall not be deemed to have violated this
Section 9 solely by reason of his passive ownership of ten percent (10%)
or less of the outstanding equity interests of any public entity. 

          Executive
hereby acknowledges that the geographic boundaries, scope of prohibited
activities and the time duration of the provisions of this Section 9 are
reasonable and are no 

Page 8

broader than are necessary to protect the legitimate business interests
of the Company. This noncompetition provision can only be revoked or modified
by a writing signed by both Executive and the Chief Executive Officer of the
Company, as approved by the Board, which specifically states an intent to
revoke or modify this provision. Executive acknowledges that the Company would
not employ him or provide him with access to its Confidential Information but
for his covenants or promises contained in this Section. 

          The Company
and Executive agree and stipulate that the agreements and covenants not to
compete contained in this Section 9 hereof are fair and reasonable in
light of all of the facts and circumstances of the relationship between
Executive and the Company; provided however, Executive and the Company are
aware that in certain circumstances courts have refused to enforce certain
terms of agreements not to compete. Therefore, in furtherance of, and not in
derogation of the provisions of this Section 9, the Company and Executive
agree that in the event a court should decline to enforce any terms of any of
the provisions of this Section 9, that this Section 9 shall be deemed
to be modified or reformed to restrict Executive’s competition with the Company
to the maximum extent, as to time, geography and business scope, which the
court shall find enforceable; provided however, in no event shall the
provisions of this Section 9 be deemed to be more restrictive to Executive
than those contained herein. 

          Executive
agrees that during the Noncompetition Term, he shall immediately notify the
Company in writing of any employment, work or business he undertakes with or on
behalf of any person (including himself) or entity, whether or not for
compensation. 

          10.
Non-Interference or Solicitation. Executive agrees
that during the Employment Period and for an additional period of one (1) year
following the termination of his employment with the Company (for whatever
reason) that neither he nor any individual, partner(s), limited partnership,
corporation or other entity or business in which Executive has any affiliation
and influence, or any employee of such entity or business that Executive
influences, will request, solicit, encourage, induce or attempt to influence, directly
or indirectly, (i) any employee of the Company to terminate his or her
employment with the Company, or (ii) any past or present customer, client,
partner, investor or contractor of the Company to terminate or limit his, her
or its relationship with the Company, or in any way interfere with the
relationship between the Company and any such customer, client, partner,
investor or contractor. 

          11.
Non-Disparagement. During Executive’s employment and
upon the termination of Executive’s employment with the Company for any reason,
Executive and Company shall not make any disparaging or defamatory statements,
whether written or verbal, regarding the Company or the Executive.

          12.
Return of Documents. Executive agrees that if
Executive’s employment with the Company is terminated (for whatever reason),
Executive shall not take with Executive, but will leave with the Company, all,
Confidential Information, records, files, memoranda, reports, documents and
other information that is the property of the Company, in whatever form
(including on computer disk), and any copies thereof, or if such items are not
on the premises of the Company, Executive agrees to return such items
immediately upon Executive’s termination or any time at the request of the
Company. Executive acknowledges that all such items are and remain the property
of the Company. 

Page 9

          13.
Severability and Reformation. If any provision of this
Agreement is held to be illegal, invalid or unenforceable under any present or
future law, and if the rights or obligations of Executive or the Company under
this Agreement would not be materially and adversely affected thereby, such
provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part thereof, the remaining provisions of this Agreement shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom, and in lieu of
such illegal, invalid or unenforceable provision, there shall be added
automatically as a part of this Agreement a legal, valid and enforceable
provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible, and the Company and Executive hereby request the
court to whom disputes relating to this Agreement are submitted to reform the
otherwise unenforceable provision in accordance with this Section 13. 

          14.
Injunctive Relief. Executive
acknowledges that the breach of any of the covenants contained herein,
including, without limitation, the non-disclosure covenants contained in
Section 8, the non-competition covenants in Section 9 and the
non-interference or solicitation covenants in Section 10, will give rise
to injury to the Company. Accordingly, Executive agrees that the Company shall
be entitled to injunctive relief to prevent or cure breaches or threatened
breaches of the provisions of this Agreement and to enforce specific
performance of the terms and provisions hereof in any court of competent
jurisdiction, in addition to any other legal or equitable remedies, which may
be available. Executive further acknowledges and agrees that the enforcement of
a remedy hereunder by way of injunction shall not prevent Executive from
earning a reasonable livelihood. Executive further acknowledges and agrees that
the covenants contained herein are necessary for the protection of the
Company’s legitimate business interests and are reasonable in scope and
content. Nothing herein shall prevent either party from pursuing a legal and/or
equitable action against the other party for any damages caused by such party’s
breach of this Agreement. 

          15.
Release Agreement. Executive
agrees that, as a condition to receiving any severance benefits or payments
under this Agreement, including those referenced in Sections 5 or 6 of this
Agreement, Executive shall execute a general release agreement (the “Release”)
in a form reasonably acceptable to the Company, which shall include, without
limitation, a waiver and release of all claims arising out of Executive’s
service as an employee of the Company, its subsidiaries or any of their
affiliates and the termination of such relationship. Such claims include all
claims based on any federal, state or local statute, including without
limitation the Age Discrimination in Employment Act of 1967, as amended, Title
VII of the Civil Rights Act of 1964, as amended, the Civil rights Act of 1991,
as amended, the Employee Retirement Income Security Act of 1974, as amended,
the Sarbanes-Oxley Act, and the Texas Commission on Human Rights Act. Such
release agreement shall also contain a mutual non-disparagement provision. In
the event Executive has not executed the Release, and all applicable revocation
periods related thereto have not expired, prior to the date any payment is
scheduled to be made under Section 5 or 6 hereof, Executive shall forfeit such
payment.

          16.
Headings. The headings used in this Agreement have
been inserted for convenience and do not constitute matter to be construed or
interpreted in connection with this Agreement. 

Page 10

          17.
Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING
EFFECT TO ANY PRINCIPLE OF CONFLICT OF LAWS THAT WOULD REQUIRE THE APPLICATION
OF THE LAW OF ANY OTHER JURISDICTION. 

          18.
Venue. The
venue for any dispute arising out of this Agreement or Executive’s employment
with the Company shall be any state or federal court of competent jurisdiction
in Harris County, Texas. Each party consents to the personal jurisdiction of
the state and federal courts of said county and waives any objection that such
courts are an inconvenient forum. 

          19.
Survival. Except as otherwise provided herein,
Executive’s termination from employment and/or the termination of this
Agreement, for whatever reason, shall not reduce or terminate Executive’s or
the Company’s covenants and agreements set forth herein. 

          20.
Notices. Any notice necessary under this Agreement
shall be in writing and shall be considered delivered three days after mailing
if sent certified mail, return receipt requested, or when received, if sent by
telecopy, prepaid courier, express mail or personal delivery to the following
addresses:

	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Company:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8 Greenway
 Plaza

 
	
  

 	
  

 	
 Suite 1000

 
	
  

 	
  

 	
 Houston,
 Texas 77046

 
	
  

 	
  

 	
 Attention:
 Chief Financial Officer

 
	
  

 	
  

 	
 Telecopy:
 (713) 850-0498

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Executive:

 
	
  

 	
  

 	
 Charles A.
 Scoville

 
	
  

 	
  

 	
 1210 Ivy
 Road

 
	
  

 	
  

 	
 Clear Lake
 Shores, Texas 77565

 

          21.
Entire Agreement. Except as provided herein, this
Agreement embodies the entire agreement and understanding of the parties hereto
in respect of the subject matter contained herein and supersedes all prior
conflicting or inconsistent agreements, consents and understandings relating to
such subject matter. The parties acknowledge and agree that there is no oral or
other agreement between the Company and Executive, which has not been
incorporated in this Agreement. This Agreement may only be modified pursuant to
Section 25. 

          22.
No Waiver. The forbearance or failure of one of the
parties hereto to insist upon strict compliance by the other with any
provisions of this Agreement, whether continuing or not, shall not be construed
as a waiver of any rights or privileges hereunder. No waiver of any right or
privilege of a party arising from any default or failure hereunder of
performance by the other shall affect such party’s rights or privileges in the
event of a further default or failure of performance. 

Page 11

          23.
Assignment. This Agreement shall be binding upon and
inure to the benefit of the Company’s successors and Executive’s personal or
legal representatives, executors, administrators, heirs, distributees, devisees
and legatees. This Agreement shall not be assignable by Executive, it being
understood and agreed that this is a contract for Executive’s personal
services. This Agreement shall not be assignable by the Company except that the
Company shall require any successor to all or substantially all of the
Company’s business or assets whether direct or indirect, by purchase, merger,
consolidation or otherwise), 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. Failure of the
Company to obtain such assumption and agreement as part of any such succession
shall be a breach of this Agreement and shall entitle Executive to resign from
the employ of the Company and to receive the termination benefits hereunder as
if he terminated his employment for Good Reason. References in this Agreement
to the “Company” include the Company as hereinbefore defined and any successor
to the Company’s business, assets or both. 

          24.
Binding Effect. This Agreement shall be binding on and
inure to the benefit of the parties and their respective permitted successors
and assigns. 

          25.
Modification. This Agreement may be modified only by a
written agreement signed by both parties. Any such written modification may
only be signed by Chief Executive Officer of the Company. 

          26.
Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original
instrument, and all of which together shall constitute one and the same
Agreement. 

          27.
Section 409A. Notwithstanding
anything herein to the contrary, to the maximum extent permitted by applicable
law, the payments to be made to Executive pursuant to Sections 5 and 6 shall be
made in reliance upon Treasury Regulations promulgated under Section 409A of
the Code, including Section 1.409A-1(b)(9) of the Treasury Regulations and
Section 1.409A-1(b)(4) of the Treasury Regulations. For this purpose, each
installment of such payments shall be considered a separate and distinct
payment for purposes of Section 409A of the Code. However, to the extent any
such payments are treated as non-qualified deferred compensation subject to
Section 409A of the Code, then (a) no amount shall be payable pursuant to
Sections 5 or 6 hereof unless Executive’s termination of employment constitutes
a “separation from service” within the meaning of Section 1.409A-1(h) of the
Treasury Regulations and (b) if Executive is deemed at the time of his
separation from service to be a “specified employee” for purposes of Section
409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion
of the payments to which Executive is entitled under this Agreement is required
in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code, such portion of Executive’s payments shall not be provided to
Executive prior to the earlier of (x) the expiration of the six-month period
measured from the date of Executive’s “separation from service” with the
Company (as such term is defined in Section 1.409A-1(h) of the Treasury
Regulations) or (y) the date of Executive’s death. Upon the earlier of such
dates, all payments deferred pursuant to this paragraph shall be paid in a lump
sum to Executive, and any remaining payments due under the Agreement shall be
paid as otherwise provided herein. The determination of whether Executive is a
“specified employee” for purposes of Section

Page 12

409A(a)(2)(B)(i) of the Code as of the time of his separation from
service shall be made by the Company in accordance with the terms of Section
409A of the Code and applicable guidance thereunder (including without
limitation Section 1.409A-1(i) of the Treasury Regulations and any successor
provision thereto). Any reimbursements of health insurance premiums
contemplated by this Agreement shall be made in accordance with the timing
rules set forth in the Regulations promulgated under Section 409A of the Code.

          The parties
acknowledge and agree that, to the extent applicable, this Agreement shall be
interpreted in accordance with, and the parties agree to use their best efforts
to achieve timely compliance with, Section 409A of the Code and the Treasury
Regulations and other interpretive guidance issued thereunder. Notwithstanding
any provision of this Agreement to the contrary, in the event that the Company
determines that any compensation or benefits payable or provided under this
Agreement may be subject to Section 409A of the Code, the Company may, with the
consent of Executive, adopt such limited amendments to this Agreement and
appropriate policies and procedures, including those with retroactive effect,
that the Company reasonably determines are necessary or appropriate to (i)
exempt the compensation and benefits payable under this Agreement from Section
409A of the Code and/or preserve the intended tax treatment of the compensation
and benefits provided with respect to this Agreement or (ii) comply with the
requirements of Section 409A of the Code. By accepting this agreement,
Executive hereby agrees and acknowledges that the Company makes no
representations with respect to the application of Section 409A of the Code to
any tax, economic, or legal consequences of any payments payable to Executive
hereunder and, by the acceptance of this Agreement, Executive agree to accept
the potential application of Section 409A of the Code to the tax and legal
consequences of payments payable to Employee hereunder. 

          IN WITNESS
WHEREOF, the parties hereto have executed this Executive Employment Agreement
as of the day and year first above written. 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 /s/
 Charles A. Scoville

 
	
  

 	
  

 	
 Charles A.
 Scoville

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 AmREIT, Inc.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 /s/ H. Kerr
 Taylor

 
	
  

 	
  

 	
 By: H. Kerr
 Taylor

 
	
  

 	
  

 	
 Title: Chief
 Executive Officer

 

Page 13

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