Document:

Exhibit 10.31

 

OPTION AGREEMENT

(126th Street & Meridian II
Medical Complex)

 

THIS OPTION
AGREEMENT (this “Agreement”) is made as of August 16, 2004 by and among, Kite
Realty Group L.P., a Delaware limited partnership (“Kite Realty”), Kite 126th
Street Medical II, LLC, an Indiana limited liability company (“Optionor”) and
Alvin E. Kite, Jr., John A. Kite, Paul W. Kite and Thomas K. McGowan (each a
“Member” and, collectively, the “Members”).

 

R E C I T A L
S

 

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

 

WHEREAS, 126th Street Medical II, LLC, an
Indiana limited liability company (the “LLC”), currently owns that certain real
property as described in Exhibit A hereto (the “Land”) and the
buildings, structures and other improvements situated on the Land or
hereinafter constructed or acquired (the “Property”);

 

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

 

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

 

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

 

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

 

ARTICLE I – THE OPTION

 

1.1           Grant
of Option.  Optionor hereby grants
to Kite Realty an option to acquire all right, title and interest of Optionor
in and to the LLC Interest free and clear of

 

 

any encumbrances on the LLC
Interest (other than encumbrances with respect to the Project Indebtedness (as
defined in Section 3.1) or any Entity Indebtedness (as defined in Section 5.2))
on the terms and conditions set forth herein (the “Option”).

 

1.2           Commencement
of Option.  Kite Realty shall have
the right to exercise the Option at any time after the date upon which the
Property reaches 85% occupancy until the expiration of the Option pursuant to
Section 1.3.  Notwithstanding the
foregoing, in the event the Kite IPO is not consummated prior to January 1,
2005, this Agreement shall become null and void and no party shall have any
liability to the other parties hereunder with respect to the transactions
contemplated hereby.

 

1.3           Expiration
of Option.  Subject to Section 6.1
hereof, the Option shall expire on the fourth anniversary of the date of
commencement of construction of the planned development on the Property (the
“Option Term”).  Optionor shall promptly
notify Kite Realty in writing of such date of commencement.

 

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

 

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

 

ARTICLE II – PROCESS FOR EXERCISE OF THE OPTION

 

2.1           Exercise.  Subject to Section 1.2 hereof, the Option
may be exercised during the Option Term by delivery of written notice by Kite
Realty to Optionor (the “Exercise Notice”), stating that the Option is
exercised on the terms set forth in this Agreement.  The Exercise Notice shall specify the name of the First Appraiser
(as defined in Section 3.1(a)(ii)).  The
date upon which the Exercise Notice is delivered by Optionor in accordance with
this Agreement is hereinafter referred to as the “Exercise Date.”  If the Option is timely exercised, subject
to Section 3.1(f), the LLC Interest shall be conveyed, and the closing date of
such acquisition, transfer and conveyance (the “Closing Date”) shall occur,
within the later of (a) 15 days after the last day of the month immediately
following the month in which the Exercise Notice is delivered or (b) 45 days
after the determination of the FMV (as defined in Section 3.1) of the Property
at the time in accordance with Section 3.1.  
The exercise of the Option is subject to the approval of a majority of
the “independent” members of the Board of Trustees of the REIT (as defined in
the REIT’s Amended and Restated Bylaws), as general partner of Kite Realty.

 

2.2           Inspection.  During the term of this Agreement and
following consent of the LLC (which Optionor agrees to use its commercially
reasonable efforts to obtain), Optionor agrees to permit Kite Realty and Kite
Realty’s agents to enter upon the Property, subject to the rights of any
tenants, at reasonable times to make such surveys, inspections

 

 

and tests as may
reasonably be necessary in connection with its examination of the
Property.  Kite Realty hereby agrees to
repair any damage it or its agents may cause to the Property as a result of any
such inspections or tests or any other related damage caused by Kite Realty or
its agents, and further agrees to indemnify, defend and hold Optionor,
Optionor’s managers, the LLC and the Members harmless from and against any and
all claims, losses, damages and expenses, including, without limitation,
reasonable attorneys’ fees, suffered by Optionor, Optionor’s managers, the LLC
and/or the Members as a direct result of the entry by Kite Realty or Kite
Realty’s agents upon, or acts upon, the Property in connection with any such
inspections or tests or any other related damage caused by Kite Realty or its
agents.

 

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

 

ARTICLE III –
ACQUISITION PROCESS

 

3.1           Acquisition
Consideration.

 

(a)           The acquisition
consideration to be paid by Kite Realty for the LLC Interest (the “Acquisition
Consideration”) pursuant to an exercise of the Option under Section 2.1
shall be equal to the lesser of (i) Annualized NOI divided by 8.5%, less the
Project Indebtedness, multiplied by the Percentage Interest or (ii) the product
of (x) the fair market value of the Property (“FMV”) at the time, as determined
in accordance with this Section 3.1, less the Project Indebtedness, multiplied
by (y) the Percentage Interest. 
“Annualized NOI” shall mean the
annualized net operating income for the Property, calculated as follows: the
sum of (i) the net operating income for the Property for the month immediately
prior to the month in which the Exercise Notice is delivered plus (ii) the net
operating income for the Property for the month in which the Exercise Notice is
delivered plus (iii) the net operating income for the Property for the month
immediately following the month in which the Exercise Notice is delivered,
annualized.  “Project
Indebtedness” shall mean any outstanding financing or other arrangements
entered into by or on behalf of the LLC which relate to the Property,
including, without limitation, any mezzanine or bridge

 

 

financing, or amendments
or extensions thereof.  The transfer of
the LLC Interest as contemplated by this Agreement shall be subject to any
Project Indebtedness.

 

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

 

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

 

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

 

(b)           On the Closing Date,
the Acquisition Consideration shall be payable by Kite Realty, in the form of
units of limited partnership interest in Kite Realty (“Units”) or cash, in the
sole and absolute discretion of Kite Realty. 
The value of Units shall be their “Market Value” as defined in this
Section 3.1(b), and the number of Units shall be rounded to the nearest whole
number of Units to avoid the issuance of fractional Units.  The term “Market Value” shall mean the
average closing price of the common shares of

 

 

beneficial interest,
$0.01 par value per share, of the REIT (or any successor thereto) (“Common
Shares”) for the 10 consecutive trading days immediately preceding (but not
including) the Closing Date.  For
purposes of determining Market Value, one Unit shall equal one Common Share,
subject to any adjustments required under the Amended and Restated Agreement of
Limited Partnership of Kite Realty, as may be amended and/or restated from time
to time (the “Partnership Agreement”), or to reflect stock splits,
reclassifications, dividends in-kind and the like.

 

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

 

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

 

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

 

(f)            Kite Realty may decide
at any time after delivery of an Exercise Notice, but before the Closing Date,
not to proceed with the acquisition of the LLC Interest as specified in the
Exercise Notice; provided, that if Kite Realty revokes such Exercise Notice
following the date on which the Second Appraiser is appointed pursuant to
Section 3.1(a)(ii), Kite Realty shall bear all of the costs and expenses of the
appraisers incurred up to the date on which Kite Realty notifies Optionor and
such appraisers of such revocation; and, provided further, that  if a final FMV determination is made in
accordance with Section 3.1 prior to Kite Realty’s revocation of such Exercise
Notice, such FMV determination shall be deemed to constitute the FMV of the
Property for purposes of subsequent exercises of the Option for a period of six
months following the date of such revocation; it being understood that any such
decision not to proceed shall not result in the termination of this Agreement
(including, without limitation, the Option).

 

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

 

 

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

 

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

 

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

 

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

 

 

by any party, any
extensions thereof) of the taxable years to which such tax returns and other
documents relate and until the final determination of any tax in respect of
such years.

 

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

 

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

 

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

 

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

 

ARTICLE IV – RIGHT OF FIRST REFUSAL

 

4.1           Right
of First Refusal.   If Optionor
receives a bona fide, good faith offer from an unaffiliated third party to
purchase all right, title and interest in and to the LLC Interest (the “Offer”)
at any time during the term of this Agreement, then, subject only to Kite
Realty’s right of first refusal contained in this Article IV, Optionor
shall have the right to convey 100% of the LLC Interest to such third party
during the term of this Agreement.  If
Optionor desires to accept the Offer, Optionor shall first give written notice
(the “ROFR Notice”) thereof to Kite Realty (the date the ROFR Notice is
delivered by Kite Realty in accordance with this Agreement is referred to as
the “Notice Date”), which ROFR Notice shall include the proposed purchase price
(the “Purchase Price”), the identity of the proposed transferee (the
“Transferee”) and other material terms (collectively, the “Acquisition Terms”)
of the proposed transfer of the LLC Interest. 
Kite Realty shall have 30 days from the Notice Date either (i) to
deliver written notice to Optionor (the “OP Notice”) of its election to acquire
100% of the LLC Interest for the same Purchase Price (payable in cash or Units,
in Kite Realty’s sole and absolute discretion) and otherwise on substantially
the same Acquisition Terms as set forth in the Offer, or (ii) if the Option is
then exercisable pursuant to Section 1.2 hereof,  to deliver an Exercise
Notice pursuant to the exercise of its Option under Section 2.1.  For
purposes of this Agreement, an “unaffiliated third party” shall mean, with
respect to any Person, any Person directly or indirectly not controlling,
not controlled by or not under common control with such Person.  For purposes of this definition, “control,”
when used with respect to any Person, shall mean the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.  “Person” shall mean a natural person,
partnership (whether general or limited), trust, estate, association,
corporation, limited liability company, unincorporated organization, custodian,
nominee or any other individual or entity in its own or any representative
capacity.

 

 

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

 

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

 

ARTICLE V – ADDITIONAL AGREEMENTS AND COVENANTS

 

5.1           Marketing
the LLC Interest for Sale.  
Optionor agrees not to (i) affirmatively market the LLC Interest
for sale during the Option Term, or (ii) sell, convey or otherwise transfer, or
agree to sell, convey or otherwise transfer, all or any portion of the
Partnership Interest, other than the sale of 100% of the Partnership Interest
pursuant to Kite Realty’s exercise of the Option or in accordance with Article
IV hereof.

 

5.2           Alternative
Transaction – Member Interest Acquisition.

 

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

 

(b)           Member Interest
Acquisition Consideration. 
Notwithstanding anything to the contrary in this Agreement, the
Acquisition Consideration payable for the Member Interests shall be reduced by
the amount of any Entity Indebtedness assumed or repaid by Kite Realty
(including, without limitation, the payment of any applicable prepayment,
assumption or other fees, costs and penalties).  For purposes of this Section 5.2(b), the value of
outstanding Entity Indebtedness assumed by Kite Realty shall be the principal
amount thereof and any accrued and unpaid interest, plus any related prepayment,
assumption and other fees, costs and penalties incurred by Kite Realty in
connection with Kite Realty’s assumption of such Entity Indebtedness.  “Entity Indebtedness” shall mean any
outstanding financings or other arrangements entered into

 

 

by
Optionor (or any affiliate of Optionor) prior to the date hereof which relate
to the LLC Interest, Optionor or the Member Interests and secured by a pledge
of the LLC Interest or Member Interests or which otherwise encumbers the LLC
Interest or Member Interests. 
Notwithstanding anything to the contrary contained herein, “Entity
Indebtedness” shall not include any Entity Indebtedness to the extent that the
aggregate of all Entity Indebtedness (plus accrued and unpaid interest and any
related prepayment, assumption or other fees, costs and penalties) exceeds the
Acquisition Consideration.  Any
financings or other arrangements encumbering the LLC Interest or Member
Interests in excess of the amount of the Acquisition Consideration (as adjusted
pursuant to this Section 5.2(b)) shall be the responsibility of Optionor and
shall be prepaid or repaid at or prior to the Closing Date.  Optionor shall provide Kite Realty with
notice of any known default under any Entity Indebtedness and shall provide
copies of any written default notices Optionor may receive from the lenders of
such indebtedness.

 

(c)           Acquisition Process.  In the event that Kite Realty elects to
accomplish the transfer of the LLC Interest through the Member Interest
Acquisition: (i) the Exercise Notice shall specify that Kite Realty elects to
effectuate the Member Interest Acquisition pursuant to this Section 5.2; (ii)
subject to this Section 5.2, the provisions of Article III shall govern the
Member Interest Acquisition; (iii) the purchase price to be paid by Kite Realty
for the Member Interests shall be equal to the Acquisition Consideration for
the LLC Interest as calculated in accordance with Section 3.1, subject to the
adjustments in Section 5.2(b), with each Member entitled to receive such
Member’s pro rata share of such Acquisition Consideration based on such
Member’s percentage interest in Optionor (as set forth in Exhibit B);
(iv) subject to Section 3.1(f), the Member Interests shall be conveyed, and the
Closing Date of such acquisition shall occur, within the later of (a) 15 days
after the last day of the month immediately following the month in which the
Exercise Notice is delivered or (b) 45 days after the determination of the FMV
of the Property at the time in accordance with Section 3.1; and (v) on or prior
to the Closing Date, subject to Section 3.1(f), the Members, Optionor and Kite
Realty shall execute and deliver the closing documentation described on Exhibit
C hereto regarding the Member Interest Acquisition, and, thereafter, the
Members, Optionor and Kite Realty shall additionally acknowledge, execute,
deliver and/or file (as the case may be) any and all other documents,
agreements or instruments reasonably necessary or appropriate to effectuate the
Member Interest Acquisition in accordance with the terms of this Agreement.

 

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

 

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

 

 

or approval of a Member
or Optionor is required to effectuate any of the transactions contemplated by
this Agreement, such Member or Optionor shall be deemed to have given such consent,
waiver or approval pursuant hereto.

 

5.5           Obligation to Sell the LLC Interest or the
Member Interests.   Optionor and the Members hereby acknowledge
and agree that, if Kite Realty does not exercise the Option and/or the LLC
Interest is not transferred in accordance with Article IV prior to the
termination of this Agreement pursuant to Section 6.1 hereof, Optionor and the
Members shall use their reasonable best efforts to sell, convey or otherwise
transfer  as
promptly as reasonably practicable  100% of the LLC Interest or  100% of the Member Interests to an
unaffiliated third party. 
Notwithstanding anything to the contrary herein, this Section 5.5 shall
survive any termination of this Agreement indefinitely.

 

ARTICLE VI – TERMINATION

 

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

 

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

 

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

 

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

 

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

 

6.2           Procedure
if Option Terminates.

 

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

 

(b)           Verification of
Termination.  Upon receipt of the
Option Termination Notice, Kite Realty agrees that, if this Agreement is
terminated, in accordance with its terms, Kite Realty will execute, acknowledge
and deliver to Optionor in recordable

 

 

form with appropriate
authorization for recording, within 10 days from request therefore, a quitclaim
deed or any other document reasonably requested by Optionor or a title
insurance company to verify the termination of this Agreement, including,
without limitation, the Option.

 

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

 

6.3           Effects
of Termination.  In the event of
termination of this Agreement pursuant to Section 6.1, the provisions of
Sections 3.4, 5.5, 6.1, 6.2 and 6.3 and Articles VIII and IX shall survive the
termination of this Agreement; it being understood that, with respect to
termination pursuant to Section 6.1(a), the provisions of this Agreement that
contemplate performance after the Closing Date and the obligations of the
parties not fully performed on the Closing Date shall survive the Closing Date
and shall not be deemed to be merged into or waived by the instruments executed
as of the Closing Date.  Notwithstanding
the foregoing, nothing in this Section 6.3 shall be deemed to release any party
from liability for any breach by such party of the terms or provisions of this
Agreement or to impair the right of any party to enforce its respective rights
hereunder.

 

ARTICLE VII – REPRESENTATIONS, WARRANTIES AND
COVENANTS

 

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

 

7.1           Organization;
Authority.  Optionor is duly formed,
validly existing and in good standing (to the extent applicable) under the laws
of its jurisdiction of formation. 
Optionor and each Member have full right, authority, power and capacity:
(a) to enter into this Agreement and each agreement, document and instrument to
be executed and delivered by or on behalf of Optionor and such Member pursuant
to this Agreement and (b) to carry out the transactions contemplated
hereby and thereby.  This Agreement and
each agreement, document and instrument executed and delivered by or on behalf
of Optionor and such Member pursuant to this Agreement constitutes, or when
executed and delivered will constitute, the legal, valid and binding obligation
of Optionor and such Member, each enforceable in accordance with its respective
terms.  The execution, delivery and
performance of this Agreement and each such agreement, document and instrument
by or on behalf of Optionor and such Member: (i) does not and will not
violate any foreign, federal, state, local or other laws applicable to Optionor
or such Member or require

 

 

Optionor or such Member
to obtain any approval, consent or waiver of, or make any filing with, any
person or authority (governmental or otherwise) that has not been obtained or
made prior to the date hereof (other than approvals, consents or waivers under
any Project Indebtedness or Entity Indebtedness); and (ii) does not and
will not violate any term, conditions or provisions of, or constitute a default
under, any bond, note or other evidence of indebtedness or any contract, lease
or other instrument to which Optionor or such Member is a party or by which the
property of Optionor or such Member is bound or affected.

 

7.2           Title
to the LLC Interest; No Agreements to Sell.   Optionor owns beneficially and of record, free and clear of any
claim, lien (including, without limitation, tax liens), option, charge,
security interest, mortgage, deed of trust, encumbrance, rights of assignment,
purchase rights or other rights of any nature whatsoever of any third party
(collectively, “Encumbrances”), and has full power and authority to convey free
and clear of any Encumbrances, the LLC Interest, except (i) Encumbrances
created in favor of Kite Realty by the transactions contemplated hereby, (ii)
Encumbrances that are extinguished at or prior to the Closing Date, and
(iii) Encumbrances relating to the Project Indebtedness or any Entity
Indebtedness.  Other than this
Agreement, Optionor is not currently a party to any agreement to sell, transfer
or otherwise encumber or dispose of, and has no obligation (absolute or
contingent) to sell, the LLC Interest owned by Optionor.  Optionor covenants and agrees not to
encumber the LLC Interest during the Option Term except in connection with the
Project Indebtedness and any Entity Indebtedness.

 

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

 

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

 

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

 

 

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

 

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

 

ARTICLE VIII – INDEMNIFICATION

 

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

 

ARTICLE IX – ASSIGNMENT; TRANSFER OF MEMBER INTERESTS

 

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

 

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

 

9.3           Transfer
of Member Interests.  A Member may
Transfer (as defined below) all or any portion of such Member’s Member Interest
by complying with the provisions of this Section 9.3.  If a proposed Transfer would result in a “Change of Control” (as
defined below), then such Member shall provide written notice of such Transfer
to Kite Realty at least 30 days prior to the proposed Transfer (the
“Transfer Notice”).  For purposes of
this Section 9.3: (a) ”Transfer” shall include any sale, assignment, gift,
pledge, hypothecation, mortgage, exchange, or other disposition, other than a
pledge, mortgage, or hypothecation of or granting of a security interest in, a
Member Interest in connection with the Project Indebtedness or any Entity
Indebtedness; and (b) “Change of Control” shall

 

 

mean (i) the Transfer of
more than 50% of the voting ownership interests in Optionor or (ii) if there is
no voting ownership interest, the Transfer of more than 50% of the equity
ownership interests in Optionor. 
Notwithstanding the foregoing, no purported Transfer of all or any
portion of a Member Interest (whether or not such Transfer would result in a
Change of Control) shall be effective unless and until the transferee becomes a
party to this Agreement and bound by the terms and conditions of this Agreement
as a “Member” (regardless of whether or not such transferee is admitted as a
member of Optionor) by executing and delivering a counterpart signature page to
this Agreement to Kite Realty.  Any
purported transfer of a Member Interest in violation of this Section 9.3 shall
be null and void.

 

ARTICLE X – MISCELLANEOUS

 

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

 

10.2         Entire
Agreement; Counterparts; Applicable Law. 
This Agreement (a) constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, between the
parties with respect to the subject matter hereof, (b) may be executed in
one or more counterparts, each of which will be deemed an original and all of
which, including, without limitation, validity, interpretation and effect,
shall constitute but one and the same instrument and (c) shall be governed
in all respects, including, without limitation, validity, interpretation and
effect, by the laws of the State of Indiana without giving effect to the
conflict of law provisions thereof.

 

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

 

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

 

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

 

 

10.6         Notices.  Any notice or demand which must or may be
given under this Agreement (including, without limitation, the Exercise Notice,
the OP Notice, the ROFR Notice, the Transfer Notice and the Option Termination
Notice) or by law shall, except as otherwise provided, be in writing and shall
be deemed to have been delivered (i) when physically received by personal
delivery (which shall include the confirmed receipt of a telecopied facsimile
transmission), or (ii) three business days after being deposited in the
United States certified or registered mail, return receipt requested, postage
prepaid or (iii) one business day after being deposited with a nationally
known commercial courier service providing next day delivery service (such as
Federal Express).

 

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

 

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

 

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

 

[Signature page follows]

 

 

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

 

 

	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONOR:

  
	
   

  	
   

  
	
  Kite 126th
  Street Medical II, LLC

  	
  KITE 126TH STREET MEDICAL II, LLC

  
	
  c/o Kite
  Realty Group Trust

  	
   

  
	
  30 S. Meridian
  Street

  	
  By:

  	
   /s/
  JOHN A. KITE

  	
   

  
	
  Suite 1100

  	
  Name: John
  A. Kite

  
	
  Indianapolis,
  Indiana  46204

  	
  Title: Chief
  Operating Officer

  
	
  Fax No.:
  (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KITE REALTY:

  
	
   

  	
   

  
	
  Kite Realty
  Group, L.P.

  	
  KITE REALTY
  GROUP, L.P.

  
	
  c/o Kite
  Realty Group Trust

  	
   

  
	
  30 S.
  Meridian Street

  	
  By:  KITE REALTY GROUP TRUST,
  its

  
	
  Suite 1100

  	
  General Partner

  
	
  Indianapolis,
  Indiana  46204

  	
   

  
	
  Fax No.:
  (317) 577-5605

  	
  By:

  	
  /s/ JOHN A.
  KITE

  	
   

  
	
   

  	
  Name: John A. Kite

  
	
   

  	
  Title: President and Chief Executive

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEMBERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Alvin E.
  Kite, Jr.

  	
   

  
	
  c/o Kite
  Realty Group Trust

  	
  /s/ ALVIN E.
  KITE, JR.

  	
   

  
	
  30 S.
  Meridian Street

  	
  Alvin E.
  Kite, Jr.

  
	
  Suite 1100

  	
   

  
	
  Indianapolis,
  Indiana  46204

  	
   

  
							

 

 

	
  John A. Kite

  	
   

  
	
  c/o Kite
  Realty Group Trust

  	
  /s/ JOHN A.
  KITE

  	
   

  
	
  30 S.
  Meridian Street

  	
  John A. Kite

  
	
  Suite 1100

  	
   

  
	
  Indianapolis,
  Indiana  46204

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Paul W. Kite

  	
   

  
	
  c/o Kite
  Realty Group Trust

  	
    /s/
  PAUL W. KITE

  	
   

  
	
  30 S.
  Meridian Street

  	
  Paul W. Kite

  
	
  Suite 1100

  	
   

  
	
  Indianapolis,
  Indiana  46204

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Thomas K. McGowan

  	
   

  
	
  c/o Kite Realty Group
  Trust

  	
    /s/ THOMAS
  K. MCGOWAN

  	
   

  
	
  30 S. Meridian Street

  	
  Thomas K. McGowan

  
	
  Suite 1100

  	
   

  
	
  Indianapolis,
  Indiana  46204

  	
   

  
					

 

 

EXHIBITS TO THE OPTION AGREEMENT*

 

 

	
  Exhibit A

  	
   

  	
  Description
  of Real Property

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Member
  Interests

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Closing
  Documentation

  (LLC Interest Acquisition/Member Interests Acquisition)

  

 

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

 

 

EXHIBIT B

 

MEMBER INTERESTS

 

	
  Member

  	
   

  	
  Member
  Percentage Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Alvin E. Kite, Jr.

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  John A. Kite

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Paul W. Kite

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Thomas K. McGowan

  	
   

  	
  20

  	
  %Exhibit
10.32

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of August 16,
2004 by and among Kite Realty Group Trust, a Maryland real estate investment
trust (the “Company”), Alvin E.  Kite,
Jr., John A. Kite, Paul W. Kite, Thomas K. McGowan, Daniel R. Sink, George
F. McMannis, IV, Mark Jenkins, C. Kenneth Kite, David Grieve and KMI Holdings,
LLC.

 

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

 

WHEREAS, as part of the
Kite IPO Transactions, Kite Realty entered into a Contribution Agreement dated
as of April 5, 2004 (the “April 5th Contribution Agreement”), with
Alvin E.  Kite, Jr., John A. Kite,
Paul W. Kite, Thomas K. McGowan, Daniel R. Sink, George F. McMannis, IV and
Mark Jenkins (collectively, the “MCA Contributors”), pursuant to which, among
other things, in connection with the closing of the Kite IPO, the MCA
Contributors will transfer their interests in certain entities that directly or
indirectly own or lease real estate properties to Kite Realty, Kite Realty will
assume certain obligations and Kite Realty will issue the number of Class A
units of limited partnership interest in Kite Realty (the “Units”) to the MCA
Contributors as set forth on Schedule A hereto;

 

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

 

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

 

WHEREAS, pursuant to the
terms of Section 8.6 and other related provisions of the Amended and
Restated  Agreement of Limited
Partnership of Kite Realty Group, L.P. (such agreement, as amended from time to
time, the “Partnership Agreement”), commencing one year after the date of
issuance, and subject to the various limitations contained in the

 

 

Partnership Agreement and
other instruments being delivered in connection with the Kite IPO Transactions,
the MCA Contributors, C. Kenneth Kite and David Grieve (each a “Contributor”
and collectively, together with their respective successors and assigns
permitted under Section 7.3 hereof, the “Contributors”) will be entitled
to redeem their Units for cash, or at the option of Kite Realty, common shares
of beneficial interest, par value $0.01 per share, of the Company (“REIT Common
Shares”);

 

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

 

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

 

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

 

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

 

WHEREAS, pursuant to the
terms of the April 5th Contribution Agreement, the Company
entered into a Merger Agreement (the “Daytona Merger Agreement”) with Kite
Daytona Management, Inc. (“Kite Daytona”), and KRG Daytona Management, LLC, an
Indiana limited liability company of which the Company is the sole member
(“Daytona Merger Sub”), pursuant to which, in connection with the closing of
the Kite IPO, Kite

 

2

 

Daytona will merge into
Daytona Merger Sub, with Daytona Merger Sub being the surviving entity, and the
common stock of Kite Daytona will be converted into REIT Common Shares in
accordance with the terms of the Daytona Merger Agreement;

 

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

 

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

 

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

 

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

 

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

 

3

 

SECTION 1.  REGISTRATION RIGHTS

 

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

 

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

 

SECTION 2.  ISSUER REGISTRATION
STATEMENT

 

2.1  Registration Procedure.  Subject to the provisos set forth in the
following sentence, the Company shall use commercially reasonable efforts,
during the period beginning 15 days prior to the date the Contributors are
first permitted to redeem the Units pursuant to the Partnership Agreement and
ending 15 days thereafter, to cause to be filed with the Securities and
Exchange Commission (the “Commission”) a registration statement (an “Issuer
Registration Statement”) that complies as to form in all material respects with
applicable Commission rules providing for the registration of the Redemption
Shares to be issued to the Contributors. 
The Company shall use commercially reasonable efforts to cause the
Issuer Registration Statement to be declared effective by the Commission as
soon as practicable following the filing thereof; provided, that the Company shall be entitled to postpone the
filing, or the effectiveness, of the Issuer Registration Statement if
(i) the Company is actively pursuing an underwritten primary offering of
equity securities, or (ii) the negotiation or consummation of a
transaction by the Company or its subsidiaries is pending or an event has
occurred, which negotiation, consummation or event would require additional
disclosure by the Company in the Issuer Registration Statement of material
information which the Company has a bona fide
business purpose for keeping confidential and the non-disclosure of which in
the Issuer Registration Statement would be expected, in the Company’s
reasonable determination, to cause the Issuer Registration Statement to fail to
comply with applicable disclosure requirements (each such circumstance a
“Suspension Event”); provided, however, that the Company may not delay
the filing, or the effectiveness, of the Issuer Registration Statement for more
than 60 days.  The Company agrees to use
commercially reasonable efforts to keep such Issuer Registration Statement
continuously effective until such time as the Contributors no longer own any
Units.  Anything contained herein to the
contrary notwithstanding, in the event that the Redemption Shares are issued by
the Company to the Contributors pursuant to an Issuer Registration Statement,
the Company shall be deemed to have satisfied all of its registration
obligations under this Agreement in respect of such Redemption Shares.

 

4

 

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

 

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

 

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

 

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

 

SECTION 3.  DEMAND REGISTRATION
RIGHTS

 

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

 

5

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

7

 

amendment has become
effective or unless otherwise notified by the Company that it may resume such
offers and sales, and (ii) it will maintain the confidentiality of any
information included in the written notice delivered by the Company unless
otherwise required by law or subpoena. 
If so directed by the Company, Holders will deliver to the Company all
copies of the Prospectus covering the Registrable Securities current at the
time of receipt of such notice.

 

3.3  Qualification.  The Company shall file such documents as
necessary to register or qualify the Registrable Securities to be covered by a
Registration Statement by the time such Registration Statement is declared
effective by the Commission under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder may reasonably request in writing, and
shall use commercially reasonable efforts to keep each such registration or
qualification effective during the period such Registration Statement is
required to be kept effective pursuant to this Agreement or during the period
offers or sales are being made by the Holders of Registrable Securities covered
by such Registration Statement after delivery of a Registration Notice to the
Company, whichever is shorter, and to do any and all other similar acts and
things which may be reasonably necessary or advisable to enable the Holders to
consummate the disposition of such Registrable Securities in each such jurisdiction;
provided, however, that the Company
shall not be required to (i) qualify generally to do business in any
jurisdiction or to register as a broker or dealer in such jurisdiction where it
would not otherwise be required to qualify but for this Agreement, (ii) take
any action that would cause it to become subject to any taxation in any
jurisdiction where it would not otherwise be subject to such taxation or
(iii) take any action that would subject it to the general service of
process in any jurisdiction where it is not then so subject.

 

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

 

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

 

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

 

(c)  promptly notify the Holders: (i) when the
Registration Statement, any pre-effective amendment, the Prospectus or any
prospectus supplement related thereto or post-effective amendment to the
Registration Statement has been filed, and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective,
(ii) of the issuance by the Commission of any stop order suspending the

 

8

 

effectiveness of the
Registration Statement or the initiation or threat of any proceedings for that
purpose, and (iii) of the receipt by the Company of any notification with
respect to the suspension of the qualification of any Registrable Securities
for sale under the securities or “blue sky” laws of any jurisdiction or the
initiation of any proceeding for such purpose;

 

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

 

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

 

(f)  following receipt of a Registration Notice
and thereafter until the sooner of completion, abandonment or termination of
the offering or sale contemplated thereby and the expiration of the period
during which the Company is required to maintain the effectiveness of the
related Registration Statement as set forth in Section 3.1(a) or
Section 3.1(b) (as the case may be) above, promptly notify the Holders:
(i) of the existence of any fact of which the Company is aware or the happening
of any event which has resulted in (A) the Registration Statement, as then in
effect, containing an untrue statement of a material fact or omitting to state
a material fact required to be stated therein or necessary to make any
statements therein not misleading or (B) the Prospectus included in such
Registration Statement containing an untrue statement of a material fact or
omitting to state a material fact required to be stated therein or necessary to
make any statements therein, in the light of the circumstances under which they
were made, not misleading, and (ii) of the Company’s reasonable determination
that a post-effective amendment to the Registration Statement would be
appropriate or that there exist circumstances not yet disclosed to the public
which make further sales under such Registration Statement inadvisable pending
such disclosure and post-effective amendment; and, if the notification relates
to any event described in either of the clauses (i) or (ii) of this
Section 3.4(f), subject to Section 3.2 above, at the request of the
Holders, the Company shall prepare and furnish to the Holders a reasonable
number of copies of a supplement or post-effective amendment to such
Registration Statement or related Prospectus or any document incorporated
therein by reference and file any other required document so that (1) such
Registration Statement shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (2) as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

 

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

 

9

 

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

 

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

 

SECTION 4.  INDEMNIFICATION;
CONTRIBUTION

 

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

 

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

 

10

 

alleged omission
therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;

 

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

 

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

 

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

 

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

 

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

 

11

 

omission or alleged
omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;

 

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

 

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

 

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

 

4.3  Conduct of Indemnification Proceedings.  An indemnified party hereunder shall give
reasonably prompt notice to the indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but
failure to so notify the indemnifying party (i) shall not relieve it from
any liability which it may have under the indemnity agreement provided in
Section 4.1 or 4.2 above, unless and only to the extent it did not
otherwise learn of such action and the lack of notice by the indemnified party
results in the forfeiture by the indemnifying party of substantial rights and
defenses, and (ii) shall not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification
obligation provided under Section 4.1 or 4.2 above.  If the indemnifying party so elects within a
reasonable time after receipt of such notice, the indemnifying party may assume
the defense of such action or proceeding at such indemnifying party’s own
expense with counsel chosen by the indemnifying party and approved by the
indemnified party, which approval shall not be

 

12

 

unreasonably withheld; provided, however, that the indemnifying party will not
settle, compromise or consent to the entry of any judgment with respect to any
such action or proceeding without the written consent of the indemnified party
unless such settlement, compromise or consent secures the unconditional release
of the indemnified party; and provided further,
that, if the indemnified party reasonably determines that a conflict of
interest exists where it is advisable for the indemnified party to be
represented by separate counsel or that, upon advice of counsel, there may be
legal defenses available to it which are different from or in addition to those
available to the indemnifying party, then the indemnifying party shall not be
entitled to assume such defense and the indemnified party shall be entitled to
separate counsel at the indemnifying party’s expense. If the indemnifying party
is not entitled to assume the defense of such action or proceeding as a result
of the second proviso to the preceding sentence, the indemnifying party’s
counsel shall be entitled to conduct the indemnifying party’s defense and
counsel for the indemnified party shall be entitled to conduct the defense of
the indemnified party, it being understood that both such counsel will
cooperate with each other, to the extent feasible in light of the conflict of
interest or different available legal defenses, to conduct the defense of such
action or proceeding as efficiently as possible. If the indemnifying party is
not so entitled to assume the defense of such action or does not assume such
defense, after having received the notice referred to in the first sentence of
this paragraph, the indemnifying party will pay the reasonable fees and
expenses of counsel for the indemnified party. In such event, however, the
indemnifying party will not be liable for any settlement effected without the
written consent of the indemnifying party. If an indemnifying party is entitled
to assume, and assumes, the defense of such action or proceeding in accordance
with this paragraph, the indemnifying party shall not be liable for any fees
and expenses of counsel for the indemnified party incurred thereafter in
connection with such action or proceeding.

 

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

 

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

 

13

 

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

 

SECTION 5.  EXPENSES

 

The Company shall pay all
expenses incident to the performance by the Company of its registration
obligations under Sections 2 and 3 above, including (i) all stock
exchange, Commission and state securities registration, listing and filing
fees, (ii) all expenses incurred in connection with the preparation,
printing and distribution of any Issuer Registration Statement or Registration
Statement and Prospectus, (iii) fees and disbursements of counsel for the
Company and of the independent public accountants of the Company, and (iv)
reasonable fees and disbursements of counsel to the Holder in connection with
the Holder’s exercise of its rights hereunder. 
Each Holder shall be responsible for the payment of any brokerage and
sales commissions and any transfer taxes relating to the sale or disposition of
the Registrable Securities by such Holder pursuant to this Agreement.

 

SECTION 6.  RULE 144 COMPLIANCE

 

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

 

SECTION 7.  MISCELLANEOUS

 

7.1  Integration; Amendment.  This Agreement constitutes the entire
agreement among the parties hereto with respect to the matters set forth herein
and supersedes and renders of no force and effect all prior oral or written
agreements, commitments and understandings among the parties with respect to
the matters set forth herein. Except as otherwise expressly provided in this
Agreement, no amendment, modification or discharge of this Agreement shall be
valid or binding unless set forth in writing and duly executed by each of the
parties hereto.

 

7.2  Waivers.  No waiver by a party hereto shall be
effective unless made in a written instrument duly executed by the party
against whom such waiver is sought to be

 

14

 

enforced, and only to the
extent set forth in such instrument. Neither the waiver by any of the parties
hereto of a breach or a default under any of the provisions of this Agreement,
nor the failure of any of the parties, on one or more occasions, to enforce any
of the provisions of this Agreement or to exercise any right or privilege
hereunder shall thereafter be construed as a waiver of any subsequent breach or
default of a similar nature, or as a waiver of any such provisions, rights or
privileges hereunder.

 

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

 

7.4  Notices.  All notices called for under this Agreement
shall be in writing and shall be deemed given upon receipt if delivered
personally or by facsimile transmission and followed promptly by mail, or
mailed by registered or certified mail (return receipt requested), postage
prepaid, or overnight delivery service, to the parties at the addresses set
forth opposite their signatures below, or to any other address or addressee as
any party entitled to receive notice under this Agreement shall designate, from
time to time, to others in the manner provided in this Section 7.4 for the
service of notices; provided, however,
that notices of a change of address shall be effective only upon receipt
thereof. Any notice delivered to the party hereto to whom it is addressed shall
be deemed to have been given and received on the day it was received; provided, however, that if such day is not a Business Day,
then the notice shall be deemed to have been given and received on the Business
Day next following such day and if any party rejects delivery of any notice
attempted to be given hereunder, delivery shall be deemed given on the date of
such rejection.  Any notice sent by
facsimile transmission shall be deemed to have been given and received on the
Business Day next following the transmission.

 

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

 

15

 

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

 

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

 

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

 

7.9  Execution in Counterparts.  To facilitate execution, this Agreement may
be executed and delivered in as many counterparts as may be required. It shall
not be necessary that the signature of or on behalf of each party appears on
each counterpart, but it shall be sufficient that the signature of or on behalf
of each party appears on one or more of the counterparts. All counterparts shall
collectively constitute a single agreement. It shall not be necessary in any
proof of this Agreement to produce or account for more than a number of
counterparts containing the respective signatures of or on behalf of all of the
parties.

 

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

 

[Signatures on
following page]

 

16

 

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

 

 

	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Kite Realty Group Trust

  	
  KITE REALTY GROUP TRUST

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
  By:

  	
  /s/ THOMAS K. MCGOWAN

  
	
  Indianapolis, Indiana
  46204

  	
  Name: Thomas K. McGowan

  
	
  Fax No.: (317) 577-5605

  	
  Title: Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Alvin E. Kite, Jr.

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
  /s/ ALVIN E. KITE JR.

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  Alvin E. Kite, Jr.

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  John A. Kite

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
  /s/ JOHN A. KITE

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  John A. Kite

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Paul W. Kite

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
    /s/ PAUL W.
  KITE

  	
   

  
	
  Indianapolis, Indiana 46204

  	
  Paul W. Kite

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Thomas K. McGowan

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
    /s/ THOMAS
  K. MCGOWAN

  	
   

  
	
  Indianapolis, Indiana 46204

  	
  Thomas K. McGowan

  
	
  Fax No.: (317) 577-5605

  	
   

  
				

 

17

 

	
  Daniel R. Sink

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
    /s/ DANIEL
  R. SINK

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  Daniel R. Sink

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  George F. McMannis, IV

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
    /s/ GEORGE
  F. McMANNIS, IV

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  George F. McMannis, IV

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Mark Jenkins

  	
   

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
    /s/ MARK
  JENKINS

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  Mark Jenkins

  
	
  Fax No.: (317) 577-5605

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  C. Kenneth Kite

  	
   

  
	
  c/o Martin Shrader

  	
   

  
	
  500 East Ohio Street

  	
   

  
	
  Suite 100

  	
    /s/ C. KENNETH
  KITE, By Martin V. Shrader, his Attorney In Fact

  
	
  Indianapolis, Indiana 46204

  	
  C. Kenneth Kite

  
	
  Fax No.: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  David Grieve

  	
   

  
	
  465 First Street West

  	
   

  
	
  Second Floor

  	
    /s/ DAVID
  GRIEVE

  	
   

  
	
  Sonoma, California 95476

  	
  David Grieve

  
	
  Fax No.: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  KMI Holdings, LLC

  	
   

  
	
  c/o Alvin E. Kite, Jr.

  	
  KMI Holdings, LLC

  
	
  30 S. Meridian Street

  	
   

  
	
  Suite 1100

  	
  By:

  	
  /s/ ALVIN E. KITE, JR.

  	
   

  
	
  Indianapolis, Indiana
  46204

  	
  Name: Alvin E. Kite,
  Jr.

  
	
  Fax No.: (317) 577-5605

  	
  Title:

  	
   

  	
   

  
									

 

18

 

EXHIBITS TO THE
REGISTRATION RIGHTS AGREEMENT*

 

 

	
  Schedule A

  	
  Number
  of Units and REIT Common Shares

  

 

 

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

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