Document:

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                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), is made and entered into
on this 1st day of March, 2000, ("Effective Date") by and between ROBERT R.
KILROY, an individual resident of the State of Georgia (the "Executive"), SUMMIT
PROPERTIES INC., a Maryland corporation, and SUMMIT MANAGEMENT COMPANY, a
Maryland corporation. Summit Properties Inc. and Summit Management Company are
referred to herein collectively as the "Company";

                              W I T N E S S E T H:

         WHEREAS, the Company desires to employ Executive, and Executive desires
to be employed by the Company on the terms and conditions contained in this
Agreement;

         NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement,
intending to be legally bound, hereby agree as follows:

                                     ss. 1.

                                   Employment

         Subject to the terms of this Agreement, the Company hereby employs
Executive, and Executive hereby accepts such employment with the Company.
Executive initially shall serve as an officer of the Company in the capacity of
Executive Vice President - Development of Summit Properties Inc. and initially
shall have the duties, rights and responsibilities normally associated with such
positions consistent with the Bylaws of Summit Properties Inc. together with
such other reasonable duties relating to the operation of the business of the
Company and its affiliates as may be assigned to him from time to time by the
Board of Directors of Summit Properties Inc. (the "Board") or as may otherwise
be provided in such Bylaws. Executive shall devote his full business time,
skills and best efforts to rendering services on behalf of the Company and its
affiliates and shall exercise such care as is customarily required by executives
undertaking similar duties for entities similar to the Company.

                                     ss. 2.

                             Compensation; Expenses

                  2.1 Base Salary. Commencing on the Effective Date, the Company
shall pay Executive during the term of Executive's employment under this
Agreement, a base salary equal to Two Hundred Thousand and 00/100 Dollars
($200,000.00) per annum (the "Base Salary"),

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which amount shall be subject to adjustment, if any, in accordance with this ss.
2.1. The Compensation Committee of the Board (the "Committee") shall review
Executive's Base Salary on an annual basis, and the Committee upon such review
and in its sole discretion, may increase or decrease Executive's Base Salary by
an amount which the Committee deems appropriate in light of the Company's and
Executive's performance during the period covered by such review; provided,
however, that Executive's Base Salary shall not be reduced below Two Hundred
Thousand and 00/100 Dollars ($200,000.00) per annum. The Base Salary, less all
applicable withholding taxes, shall be paid to Executive in accordance with the
payroll procedures in effect with respect to officers of the Company.

                  2.2 Incentive Compensation. In addition to the Base Salary
payable to Executive pursuant to ss. 2.1 and any special compensatory
arrangements which the Committee provides for Executive, effective as of the
Effective Date, Executive shall be entitled to participate in any incentive
compensation plans in effect with respect to senior executive officers of the
Company, with the criteria for Executive's participation in such plans to be
established by the Committee in its sole discretion. The Committee has
determined that Executive's cash bonus component of the above executive
compensation plan for calendar year 2000 will be calculated as a percentage of
Executive's Base Salary which corresponds to the actual per share growth in
Funds from Operations ("FFO") during the year ended December 31, 2000 as set
forth in the following table:

--------------------------------------------------------------------------------
FFO Growth %                          4     5     6     7     8     9     10
--------------------------------------------------------------------------------
Cash Bonus as % of Base Salary        30    40   50     60    70   90     110
--------------------------------------------------------------------------------

With such cash bonus for 2000 as calculated above then prorated by multiplying
said cash bonus by a fraction, the numerator of which will be the number of days
occurring between the Effective Date and December 31, 2000 and the denominator
of which will be 365. The payment of said prorated cash bonus shall be
conditioned upon Executive's continuing employment with the Company through
December 31, 2000. For all years subsequent to 2000, Executives Cash Bonus shall
be determined by the Committee. Cash bonus amounts due to Executive in excess of
fifty percent (50%) of Executive's then current base salary shall be paid in the
form of shares of common stock of Summit Properties Inc., of commensurate value.

                  2.3. Stock Options. Executive shall be entitled to participate
in employee stock option plans from time to time established for the benefit of
employees of the Company in accordance with the terms and conditions of such
plans. Executive shall, subject to approval by the Compensation Committee of the
Board of Directors, as of the Effective Date receive a non-qualified grant of
One hundred twenty-five thousand (125,000) options to purchase shares of common
stock of Summit Properties Inc. at an exercise price per share equal to the
closing price of the stock on the New York Stock Exchange on the Effective Date.
This option grant will provide for a term of ten (10) years from the date of
grant with vesting occurring at the rate of

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20% upon grant and 20% on each one year anniversary for the next consecutive
four years thereafter. Such option grant will be subject to vesting of any
unvested portion thereof upon a change of control, as defined in Summit
Properties Inc.'s 1994 Stock Option and Incentive Plan as Amended and Restated
("Plan"). In the event of any conflicts between this paragraph 2.3 Stock
Options. and the Plan or the specific agreement granting the options, the terms
of the Plan or said specific agreement shall control.

                  2.4 Expenses. Executive shall be reimbursed for all reasonable
business-related expenses incurred by Executive at the request of or on behalf
of the Company. Executive shall receive $100,000 as complete and total
compensation for any and all relocation costs associated with Executive's
relocation to Charlotte, NC. Said $100,000 shall be paid by Company to Executive
no later than twenty (20) business days after the Effective Date. To the extent
actual relocation costs are less than $100,000, Executive shall retain the
difference between such actual costs and $100,000. To the extent that actual
relocation costs exceed $100,000 Executive shall be responsible for the payment
thereof.

                  2.5. Participation in Employee Benefit Plans. Executive shall
be entitled to participate in such medical, dental, disability, hospitalization,
life insurance, profit sharing and other benefit plans as the Company shall
maintain from time to time for the benefit of executive officers of the Company,
on the terms and subject to the conditions set forth in such plans. In addition,
during the term of this Agreement, Executive shall be entitled to a
comprehensive annual physical performed, at the company's expense, by the
physician or medical group of Executive's choosing.

                  2.6. Vacation. In addition to Company holidays, Executive
shall receive such paid vacation time each year during the term of this
Agreement consistent with vacation policies of the Company for its executive
officers. Said paid vacation time shall initially be twenty days. Any unused
vacation days in any year may not be carried over to subsequent years, and
Executive shall receive no additional compensation for any unused vacation days.

                  2.7. Perquisites. Executive shall be entitled to receive such
individual perquisites as are consistent with the Company's policies applicable
to its executive officers.

                                     ss. 3.

                               Term of Employment

                  3.1 Term of Employment. Unless earlier terminated in
accordance with ss. 3.2, the employment of Executive under this Agreement shall
commence as of the Effective Date, and shall continue up to, but not including,
the first anniversary of such date (the "Original Term"). Following the Original
Term, the employment relationship under this Agreement shall automatically
continue for consecutive one-year terms unless and until terminated in
accordance with ss. 3.2.

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                  3.2 Termination. Executive's employment under this Agreement
may be terminated

                  (a) by the Company upon the death of Executive (which shall be
         referred to as a "Death Termination") or total disability of Executive
         (total disability meaning the inability of Executive to perform his
         normal required services under this Agreement for a period of six
         consecutive months during the term of this Agreement by reason of
         Executive's mental or physical disability, as determined by the Board
         in good faith in its sole discretion) (which shall be referred to as a
         "Disability Termination"); or

                  (b) by the Company for "cause," which shall exist only upon
         the occurrence of one or more of the following: (i) Executive is
         convicted of, pleads guilty to, or confesses to any felony or any act
         of fraud, misappropriation or embezzlement which has an immediate and
         materially adverse effect on the Company, as determined by the Board in
         good faith in its sole discretion, (ii) Executive engages in a
         fraudulent act to the material damage or prejudice of the Company or
         any affiliate of the Company or in conduct or activities materially
         damaging to the property, business or reputation of the Company or any
         affiliate of the Company, all as determined by the Board in good faith
         in its sole discretion, (iii) any material act or omission by Executive
         involving malfeasance or negligence in the performance of Executive's
         duties to the Company to the material detriment of the Company, as
         determined by the Board in good faith in its sole discretion, which has
         not been corrected by Executive within thirty (30) days after written
         notice from the Company of any such act or omission, (iv) failure by
         Executive to comply in any material respect with the terms of this
         Agreement or any written policies or directives of the Board as
         determined by the Board in good faith in its sole discretion, which has
         not been corrected by Executive within thirty (30) days after written
         notice from the Company of such failure, or (v) material breach by
         Executive of that certain noncompetition agreement between Executive
         and the Company of even date herewith (the "Noncompetition Agreement")
         as determined by the Board in good faith in its sole discretion (which
         shall be referred to individually and collectively as a "For Cause
         Termination"); or

                  (c) by the Company for any reason other than a For Cause
         Termination, Death Termination or Disability Termination and after
         giving 90 days' prior written notice to Executive (which shall be
         referred to as a "No Cause Termination"); or

                  (d) by Executive voluntarily for any reason other than an
         Employee-Initiated Termination (as defined in ss. 3.2(e)) at any time
         after the Original Term and after giving 90 days' prior written notice
         to the Company (which shall be referred to as a "Voluntary
         Termination"); or

                  (e) by Executive for "cause", which shall exist upon the
         occurrence of either of the following, provided that in either case the
         Board has not corrected such material

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         reduction described below within thirty (30) days after written notice
         by Executive of such material reduction: (i) there is a material
         reduction in Executive's duties, rights or responsibilities under this
         Agreement without his consent, or (ii) there is a material decrease in
         the aggregate value of Executive's compensation and benefits package
         from the Company without his consent, other than a reduction in
         Executive's Base Salary that is permitted under the provisions ofss.2.1
         and other than a reduction in compensation, including but not limited
         to a reduction in Base Salary as permitted under the provisions
         ofss.2.1, and/or benefits affecting a broad group of employees of the
         Company as determined by the Board in good faith in its sole discretion
         (which shall be referred to as an "Employee-Initiated Termination").

                                     ss. 4.

                              Result of Termination

                  4.1. For Cause Termination or Voluntary Termination. If
Executive's employment under this Agreement is terminated as a result of a
Voluntary Termination or a For Cause Termination, Executive shall not thereafter
be entitled to receive any Base Salary for periods following such termination;
provided, however, that Executive shall be entitled to receive any Base Salary
which may be owned to Executive but is unpaid as of the date on which
Executive's employment is terminated.

                  4.2 Termination As Result of No Cause Termination or
Employee-Initiated Termination During Original Term. If Executive's employment
under this Agreement is terminated as a result of a No Cause Termination or an
Employee-Initiated Termination During the Original Term, Executive shall be
entitled to receive (i) any Base Salary which may be owed to Executive but is
unpaid as of the date on which Executive's employment is terminated, and (ii)
his Base Salary as in effect on the date of such termination for a twelve month
period. If Executive's employment under this agreement is terminated as a result
of a No Cause Termination or an Employee-Initiated Termination, subsequent to
the Original Term, Executive shall be entitled to receive (i) any Base Salary
which may be owed to Executive that was unpaid as of the date on which
Executive's employment is terminated, and (ii) his Base Salary as in effect on
the date of such termination for a twelve month period. The payment of such Base
Salary pursuant to clause (ii) of the preceding sentences shall be made at such
intervals in accordance with the Company's payroll procedures in effect from
time to time with respect to officers of the Company but no less frequently than
monthly. In addition, in the event of Executive's death following a Voluntary
Termination, No Cause Termination, or an Employee-Initiated Termination
subsequent to the Original Term, any Base Salary payable to Executive under this
Section 4.2 and not yet paid on the date of Executive's death shall be paid to
Executive's designated beneficiary, if any, or if none, his surviving spouse,
or, if none, his estate (collectively, the "Beneficiary"). Such payments shall
be made to the Beneficiary at such times as would otherwise have been payable to
Executive under this Section 4.2; provided, however, that the Company may in its
discretion pay such Base Salary to the Beneficiary in a lump sum

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payment in an amount determined in accordance with the methodology set forth in
subsection (B) of Section 4.3.

                  4.3. Termination as a Result of a Death Termination or a
Disability Termination During Original Term. If Executive's employment under
this Agreement is terminated as a result of a Death Termination or Disability
Termination during the Original Term, (i) Executive (or, in the case of a Death
Termination, Executive's Beneficiary as defined in Section 4.2) shall be
entitled to receive any Base Salary and cash bonus which may be owed to
Executive but is unpaid as of the date on which Executive's employment is
terminated; (ii) his Base Salary as in effect on the date of such termination
for the period up to, but not including (I) the later of (a) the third
anniversary of the Effective Date or (b) the first anniversary of the date of
Termination or (II) if the above said Termination occurs later than (a) or (b)
above, the later of (x) the end of his one year term of employment under any
extension of this Agreement or (y) the first anniversary of the date of
Termination, and (iii) a bonus amount ("Bonus") consisting of cash equal to the
cash bonus, if any, paid to the Executive pursuant to of ss. 2.2 of this
Agreement for the calendar year immediately preceding the calendar year in which
the Termination occurred. The Bonus amount shall include the cash value of
shares of common stock of the Company, if any, issued in lieu of a portion of
the above mentioned cash bonus. In addition, the following provisions shall
apply:

         (A)      If payment of Base Salary is to be made under clause (ii) of
                  this Section 4.3 due to a Disability Termination, such Base
                  Salary shall be paid at such intervals in accordance with the
                  Company's payroll procedures in effect from time to time with
                  respect to officers of the Company but no less frequently than
                  monthly, and such Base Salary shall be offset by any amounts
                  payable to Executive under any long-term disability plan
                  sponsored by the Company or its affiliates. In the event of
                  Executive's death following a Disability Termination, any Base
                  Salary payable to Executive under this Section 4.3 (taking
                  into account the offset described above, if any) and not yet
                  paid on the date of Executive's death shall be paid to
                  Executive's Beneficiary. Such payments shall be made to the
                  Beneficiary at such times as would otherwise have been payable
                  to Executive under this subsection (A); provided, however,
                  that the Company may in its discretion pay such Base Salary to
                  the Beneficiary in a lump sum payment in an amount determined
                  in accordance with the methodology set forth in subsection (B)
                  of this Section 4.3.

         (B)      In the event of a Death Termination, payments to the
                  Beneficiary shall be made in a single lump sum as soon as
                  practical after Executive's death. The amount of such lump sum
                  shall be equal to the present value, determined using a 9%
                  interest rate, of the total amount of Base Salary payable to
                  the Beneficiary pursuant to this Section 4.3 and not yet paid
                  on the date of Executive's death.

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                  4.4. Employee Benefit Plans and Incentive Compensation and
Other Compensatory Arrangements. The benefits, if any, payable to or on behalf
of Executive upon his termination of employment from the Company under any
employee benefit plan or incentive compensation or other compensatory
arrangement shall be governed by the terms and conditions for benefit payments
set forth in such plans and arrangements.

                                     ss. 5.

                                  Miscellaneous

                  5.1. Binding Effect. This Agreement shall inure to the benefit
of and shall be binding upon Executive and his executor, administrator, heirs,
personal representative and assigns, and the Company and its successors and
assigns; provided, however, that Executive shall not be entitled to assign or
delegate any of his rights or obligations hereunder without the prior written
consent of Company; and further provided that the Company shall not be entitled
to assign or delegate any of its rights or obligations hereunder except to a
corporation, partnership or other business entity that is, directly or
indirectly, controlled by or under common control with Summit Properties Inc.

                  5.2. Construction of Agreement. No provision of this Agreement
or any related document shall be construed against or interpreted to the
disadvantage or any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured or
drafted such provision.

                  5.3 Amendment; Waiver. 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. Any waiver by an party or consent by any party to any
variation from any provision of this Agreement shall be valid only if in writing
and only in the specific instance in which it is given, and no such waiver or
consent shall be construed as a waiver of any other provision or as a consent
with respect to any similar instance or circumstance.

                  5.4 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of North Carolina.

                  5.5. Survival of Agreements. All covenants and agreements made
herein shall survive the execution and delivery of this Agreement and the
termination of Executive's employment hereunder for any reason.

                  5.6 Headings. The section and paragraph headings contained in
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.

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                  5.7 Notices. All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to be given
when delivered personally or mailed first class, registered or certified mail,
postage prepaid, in either case, addressed as follows:

                           (a)      If to Executive:

                                    Robert R. Kilroy
                                    At last known address as reflected in the
                                    Company's records.

                           (b)      If to the Company, addressed to:

                                    Summit Properties Inc.
                                    212 South Tryon Street, Suite 500
                                    Charlotte, North Carolina 28281
                                    Attn:  Michael G. Malone

                  5.8. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument.

                  5.9. Entire Agreement. This Agreement, together with the
Noncompetition Agreement and Executive Severance Agreement, constitute the
entire agreement of the parties with respect to the subject matter hereof and
upon the Effective Date, will supersede and replace all prior agreements,
written and oral, between the parties hereto or with respect to the subject
matter hereof. This Agreement may be modified only by a written instrument
signed by each of the parties hereto.

                  [Remainder of Page Left Intentionally Blank]

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                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written.

                                    SUMMIT PROPERTIES INC.

                                    By:/s/ STEVEN R. LEBLANC
                                       ---------------------
                                    Name: Steven R. LeBlanc
                                    Title: President and Chief Operating Officer

                                    SUMMIT MANAGEMENT COMPANY

                                    By:/s/ STEVEN R. LEBLANC
                                       ---------------------
                                    Name:  Steven R. LeBlanc
                                    Title:  Vice President

                                    Collectively, the "Company"

                                    /s/ ROBERT R. KILROY [SEAL]
                                    --------------------
                                    Robert R. Kilroy

                                    "Executive"

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                          EXECUTIVE SEVERANCE AGREEMENT

         AGREEMENT made as of this 1st day of March 2000 by and between Summit
Properties Inc., a Maryland corporation with its principal place of business in
Charlotte, North Carolina (the "Company"), and Robert R. Kilroy (the
"Executive").

         1. Purpose. The Company considers it essential to the best interests of
its stockholders to foster the continuous employment of key management
personnel. The Board of Directors of the Company (the "Board") recognizes,
however, that, as is the case with many publicly held corporations, the
possibility of a Change in Control (as defined in Section 2 hereof) exists and
that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management
personnel to the detriment of the Company and its stockholders. Therefore, the
Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company's
management, including the Executive, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from the
possibility of a Change in Control. Nothing in this Agreement shall be construed
as creating an express or implied contract of employment or any right to be
retained in the employ of the Company. The Company and the Executive have
entered into an Employment Agreement dated March 1, 2000 (as such agreement may
be in effect from time to time, and including any replacement employment
agreement, the "Employment Agreement") that provides for compensation to the
Executive under certain circumstances in the event that the Executive's
employment is terminated. This Agreement is intended to supplement the
Employment Agreement without duplicating payments in the event of the
termination of the Executive's employment.

         2. Change in Control and Combination Transactions.

         (a) A "Change in Control" shall be deemed to have occurred in any one
of the following events:

                  (i) any "person," as such term is used in Sections 13(d) and
                  14(d) of the Securities Exchange Act of 1934 (the "Act")
                  (other than the Company, Summit Properties Partnership, L.P.
                  (together with any other subsidiaries of the Company, the
                  "Subsidiaries"), or any trustee, fiduciary or other person or
                  entity holding securities under any employee benefit plan or
                  trust of the Company or any of its Subsidiaries), together
                  with all "affiliates" and "associates" (as such terms are
                  defined in Rule 12b-2 under the Act) of such person, shall
                  become the "beneficial owner" (as such term is defined in
                  Rule13d-3 under the Act), directly or indirectly, of
                  securities of the Company representing 40% or more of either
                  (A) the combined voting power of the Company's then
                  outstanding securities having the right to vote in an election
                  of the Board ("Voting Securities") or (B) the then outstanding
                  shares of stock of the Company ("Stock"), in
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                  either such case other than as a result of an acquisition of
                  securities directly from the Company; or

                  (ii) persons who, as of the date hereof, constitute the
                  Board(the "Incumbent Directors") cease for any reason,
                  including, without limitation, as a result of a tender offer,
                  proxy contest, merger or similar transaction, to constitute at
                  least a majority of the Board, provided that any person
                  becoming a director of the Company subsequent to the date
                  hereof whose election or nomination for election was approved
                  by a vote of at least a majority of the Incumbent Directors
                  shall, for purposes of this Agreement, be considered an
                  Incumbent Director; or

                  (iii) the stockholders of the Company shall approve (A) any
                  consolidation or merger of the Company or any Subsidiary where
                  the stockholders of the Company, immediately prior to the
                  consolidation or merger, would not, immediately after the
                  consolidation or merger, beneficially own (as such term is
                  defined in Rule 13d-3 under the Act), directly or indirectly,
                  shares representing in the aggregate fifty percent (50%) or
                  more of the voting shares of the corporation issuing cash or
                  securities in the consolidation or merger (or of its ultimate
                  parent corporation, if any), (B) any sale, lease, exchange or
                  other transfer (in one transaction or a series of transactions
                  contemplated or arranged by any party as a single plan) of all
                  or substantially all of the assets of the Company or (C) any
                  plan or proposal for the liquidation or dissolution of the
                  Company.

Notwithstanding the foregoing, a "Change of Control" shall not be deemed to have
occurred for purposes of the foregoing clause (i) solely as the result of an
acquisition of securities by the Company which, by reducing the number of shares
of Stock or other Voting Securities outstanding, increases (x) the proportionate
number of shares of Stock beneficially owned by any person to 40% or more of the
shares of Stock then outstanding or (y) the proportionate voting power
represented by the Voting Securities beneficially owned by any person to 40% or
more of the combined voting power of all then outstanding Voting Securities;
provided, however, that if any person referred to in clause (x) or (y) of this
sentence shall thereafter become the beneficial owner of any additional shares
of Stock or other Voting Securities (other than pursuant to a stock split, stock
dividend, or similar transaction), then a "Change of Control" shall be deemed to
have occurred for purposes of the foregoing clause (i).

         (b) A "Combination Transaction" shall be deemed to have occurred if the
Company shall consummate any consolidation or merger of the company or any
Subsidiary where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation or
merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, shares representing in the aggregate 75% or more of
either (i) the combined voting power of the company's then outstanding Voting
Securities or (ii) the then outstanding shares of Stock.

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         (c) For purposes of determining whether a Change in Control or a
Combination Transaction has occurred, all outstanding options, warrants and
other convertible securities that are then exchangeable or convertible into
Voting Securities of the Company, including, without limitation, all partnership
units of any Subsidiary that are convertible into Voting Securities of the
Company at the option of the holder or the Company, shall be deemed to have been
converted into the applicable number of shares of Voting Securities of the
Company immediately prior to making such determination.

         3. Terminating Event. A "Terminating Event" shall mean any of the
following events:

         (a) termination occurring subsequent to a Change of Control or a
Combination Transaction by the Company of the employment of the Executive with
the Company for any reason other than:

                  (i) the death of the Executive (which shall be referred to as
                  a "Death Termination") or total disability of the Executive
                  (total disability meaning the inability of the Executive to
                  perform his normal required services under this Agreement for
                  a period of six consecutive months during the term of this
                  agreement by reason of the Executive's mental or physical
                  disability, as determined by the board in good faith in its
                  sole discretion) (which shall be referred to as a "Disability
                  Termination") or the retirement of the Executive;

                  (ii) if the Executive is convicted of, pleads guilty to, or
                  confesses to any felony or any act of fraud, misappropriation
                  or embezzlement which has an immediate and materially adverse
                  effect on the Company, any Subsidiary or any affiliate of the
                  Company, as determined by the Board in good faith in its sole
                  discretion;

                  (iii) if the Executive engaged in a fraudulent act to the
                  material damage or prejudice of the Company, any Subsidiary or
                  any affiliate of the Company or in conduct or activities
                  materially damaging to the property, business or reputation of
                  the Company, any Subsidiary or any affiliate of the Company,
                  all as determined by the Board in good faith in its sole
                  discretion;

                  (iv) in the event of any material act or omission by the
                  Executive involving malfeasance or negligence in the
                  performance of the Executive's duties to the Company to the
                  material detriment of the Company, any Subsidiary or any
                  affiliate of the Company, as determined by the Board in good
                  faith in its sole discretion, which

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                  has not been corrected by the Executive within thirty (30)
                  days after written notice from the Company of any such act or
                  omission:

                  (v) failure by the Executive to comply in any material respect
                  with the terms of the Employment Agreement or any written
                  policies or directives of the Board as determined by the Board
                  in good faith in its sole discretion, which has not been
                  corrected by the Executive within thirty (30) days after
                  written notice from the Company of such failure; or

                  (vi) a material breach by the Executive of that certain
                  Noncompetition agreement between the Executive and the Company
                  dated March 1, 2000 (the "Noncompetition Agreement") as
                  determined by the Board in good faith in
                  its sole discretion.

Each of the events described in the foregoing clauses (ii) through (vi) shall be
referred to individually and collectively as a "For Cause Termination."
Notwithstanding any other provision of this Section 3(a), a Terminating Event
shall not be deemed to have occurred pursuant to this Section 3(a) solely as a
result of the Executive being an employee of any direct or indirect successor to
the business or assets of the Company, rather that continuing as an employee of
the Company following a Change in Control or A Combination Transaction. For
purposes of clause (i) of this Section 3(a), "retirement" shall mean termination
of the Executive's employment in accordance with the Company's normal retirement
policy, generally applicable to its salaried employees, as in effect immediately
prior to the change in Control or Combination Transaction, or in accordance with
any retirement arrangement established with respect to the Executive with the
Executive's express written consent; or

         (b) termination occurring subsequent to a Change in Control or a
Combination Transaction by the Executive of the Executive's employment with the
company for Good Reason. "Good Reason" shall mean the occurrence of any of the
following, provided that in either case the Board has not corrected such
material reduction described below within thirty (30) days after written notice
by the Executive of such material reduction: (i) there is a material reduction
in the Executive's duties, rights or responsibilities under the Employment
Agreement without his consent, or (ii) there is a material decrease in the
aggregate value of the Executive's compensation and benefits package from the
Company under the Employment Agreement without his consent, other than a
reduction in the Executive's base salary that is permitted under the Employment
Agreement and other than a reduction in compensation and/or benefits affecting a
broad group of employees of the Company as determined by the Board in good faith
in its sole discretion; (iii) there is a relocation of the Company's offices at
which the Executive is principally employed immediately prior to the date of a
Change in Control or Combination Transaction to a location more than fifty (50)
miles from such offices, or the requirement by the Company for the Executive to
be based anywhere other than the

                                       4
<PAGE>   5

Company's offices at such location, except for required travel on the Company's
business to an extent substantially consistent with the Executive's business
travel obligations immediately prior to the Change in Control or a Combination
Transaction; or

         (c) termination occurring subsequent to a Change of Control by the
Executive of the Executive's employment with the Company for any reason, unless
an event that would constitute grounds for a For Cause Termination of the
Executive's employment has occurred.

         4. Severance Payment. In the event that either a Terminating Event
described in Section 3(a), 3(b), or 3(c) occurs within twelve (12) months after
a Change in Control, or a Terminating Event described in Section 3(a) or 3(b)
occurs within twelve (12) months after a Combination Transaction:

         (a) the Company shall pay to the Executive an amount equal to the
difference between (i) three (3) times the Executive's salary and cash bonus
paid (including amounts that were deferred by the Executive but would have been
paid in the absence of such deferral) with respect to the fiscal year
immediately preceding the year in which the Terminating Event occurred and (ii)
any amount of severance or other cash compensation paid to the Executive
pursuant to the Employment Agreement as a result of the termination of the
Executive's employment. Said amount shall be paid in one lump sum payment no
later than thirty-one (31) days following the Date of Termination (as such term
is defined in Section 8(b); and

         (b) the Company shall pay to the Executive all reasonable legal and
arbitration fees and expenses incurred by the Executive in obtaining or
enforcing any right or benefit provided by this Agreement, except in cases
involving frivolous or bad faith litigation; and

         (c) if said Terminating Events, as described in this paragraph 4, also
occur in fiscal year 2000, then Executive's salary and cash bonus paid with
respect to fiscal year 1999 shall, for the sole purpose of calculating the
Severance Payment only, be deemed to be an aggregate total of $325,000.

         5. Additional Benefits.

         (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by the Company to
or for the benefit of the Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (the
"Severance Payments"), would be subject to the excise tax imposed by Section
4999 of the Internal Revenue Code of 1986, as amended, ("the Code"), or any
interest or penalties are incurred by the Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), then the Executive
shall be entitled to receive an additional payment (a "Gross-Up Payment") such
that the net amount retained by the Executive, after deduction of any Excise Tax
on the Severance

                                       5
<PAGE>   6

Payments, any Federal, state and local income tax, employment tax and Excise Tax
upon the payment provided by this subsection, and any interest and/or penalties
assessed with respect to such Excise Tax, shall be equal to the Severance
Payments.

         (b) Subject to the provisions of Section 5(c), all determinations
required to be made under this Section 5, including whether a Gross-Up Payment
is required and the amount of such Gross-Up Payment, shall be made by the
Company's independent certified public accounting firm (the "Accounting Firm"),
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days of the Date of Termination, if applicable, or
at such earlier time as is reasonably requested by the Company or the Executive.
For purposes of determining the amount of the Gross-Up Payment, the Executive
shall be deemed to pay federal income taxes at the highest marginal rate of
federal income taxation applicable to individuals for the calendar year in which
the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rates of individual taxation in the state and locality of the
Executive's residence on the Date of Termination, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state and
local taxes. The initial Gross-Up Payment, if any, as determined pursuant to
this Section 5(b), shall be paid to the Executive within five days of the
receipt of the Accounting Firm's determination. If the Accounting Firm
determines that no Excise Tax is payable by the Executive, the Company shall
furnish the Executive with an opinion of counsel that failure to report the
Excise Tax on the Executive's applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any determination
by the Accounting Firm shall be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (an "Underpayment"). In the event that the Company
exhausts its remedies pursuant to Section 5(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred, consistent with the
calculations required to be made hereunder, and any such Underpayment, and any
interest and penalties imposed on the Underpayment and required to be paid by
the Executive in connection with the proceedings described in Section 5(c),
shall be promptly paid by the Company to or for the benefit of the Executive.

         (c) The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-up Payment. Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive knows of such
claim and shall apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. The Executive shall not pay such claim
prior to the expiration of the 30-day period following the date on which he
gives such notice to the Company (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Company notifies
the Executive in writing prior to the expiration of such period that it desires
to contest such claim, the Executive shall:

                                       6
<PAGE>   7

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

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

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

                  (iv) permit the Company to participate in any proceedings
                  relating to such claim; provided, however that the Company
                  shall bear and pay directly all costs and expenses (including
                  additional interest and penalties) incurred in connection with
                  such contest and shall indemnify and hold the Executive
                  harmless, on an after-tax basis, for any Excise Tax or income
                  tax, including interest and penalties with respect thereto,
                  imposed as a result of such representation and payment of
                  costs and expenses. Without limitation on the foregoing
                  provisions of this Section 5(c), the Company shall control all
                  proceedings taken in connection with such contest and, at its
                  sole option, may pursue or forego any and all administrative
                  appeals, proceedings, hearings and conferences with the taxing
                  authority in respect of such claim and may, at its sole
                  option, either direct the Executive to pay the tax claimed and
                  sue for a refund or contest the claim in any permissible
                  manner, and the Executive agrees to prosecute such contest to
                  a determination before any administrative tribunal, in a court
                  of initial jurisdiction and in one or more appellate courts,
                  as the Company shall determine; provided, however, that if the
                  Company directs the Executive to pay such claim and sue for a
                  refund, the Company shall advance the amount of such payment
                  to the Executive on an interest-free basis and shall indemnify
                  and hold the Executive harmless, on an after-tax basis, from
                  any Excise Tax or income tax, including interest or penalties
                  with respect thereto, imposed with respect to such advance or
                  with respect to any imputed income with respect to such
                  advance; and further provided that any extension of the
                  statute of limitations relating to payment of taxes for the
                  taxable year of the Executive with respect to which such
                  contested amount is claimed to be due is limited solely to
                  such contested amount. Furthermore, the Company's control of
                  the contest shall be limited to issues with respect to which a
                  Gross-Up Payment would be payable hereunder and the Executive
                  shall be entitled to settle or contest, as the case may be,
                  any other issues raised by the Internal Revenue Service or any
                  other taxing authority.

         (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 5(c), the Executive becomes entitled to receive any
refund

                                       7
<PAGE>   8

with respect to such claim, the Executive shall (subject to the Company's
complying with the requirements of Section 5(c)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 5(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

         6. Term. This Agreement shall take effect on the date first set forth
above and shall terminate upon the earlier of (a) immediately prior to a For
Cause Termination by the Company of the employment of the Executive, (b) the
termination of employment of the Executive by the Company or the Executive for
any reason prior to a Change in Control or a Combination Transaction, (c) the
resignation of the Executive other than for Good Reason after a Combination
transaction, but prior to a Change in Control, or (d) immediately prior to the
resignation of the Executive after a Change in Control if any event that would
constitute grounds for a For Cause Termination of the Executive's employment has
occurred.

         7. Withholding. All payments made by the Company under this Agreement
shall be net of any tax or other amounts required to be withheld by the Company
under applicable law.

         8. Notice and Date of Termination; Disputes; Etc.

         (a) Notice of Termination. After a Change in Control or Combination
Transaction and during the term of this Agreement, any purported termination of
the Executive's employment (other than by reason of a Death Termination) shall
be communicated by written Notice of Termination from one party hereto to the
other party hereto in accordance with this Section 8. For purposes of this
Agreement, a "Notice of Termination" shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon and the Date of
Termination.

         (b) Date of Termination. "Date of Termination", with respect to any
purported termination of the Executive's employment after a Change in Control or
Combination Transaction and during the term of this Agreement, shall mean (i) if
there is a Disability Termination, thirty (30) days after Notice of Termination
is given (provided that the Executive shall not have returned to the full-time
performance of the Executive's duties during such thirty (30) day period) and
(ii) if the Executive's employment is terminated for any other reason, the date
specified in the Notice of Termination. In the case of a termination by the
Company other than a For Cause Termination (which may be effective immediately),
the Date of Termination shall not be less than thirty (30) days after the Notice
of Termination is given. In the case of a termination by the Executive, the Date
of Termination shall not be less than fifteen (15) days from the date such
Notice

                                       8
<PAGE>   9

of Termination is given. Notwithstanding Section 3(a) of this Agreement, in the
event that the Executive gives a Notice of Termination to the Company, the
Company may unilaterally accelerate the Date of Termination and such
acceleration shall not result in a Terminating Event for purposes of Section
3(a) of this Agreement.

         (c) No Mitigation. The Company agrees that, if the Executive's
employment by the Company is terminated during the term of this Agreement, the
Executive is not required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company pursuant to Sections
4(a) and (b) hereof. Further, the amount of any payment provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as
the result of employment by another employer, but shall be subject to reduction
by certain amounts received under the Employment Agreement as provided in
Section 4(a) hereof.

         (d) Settlement and Arbitration of Disputes. Any controversy or claim
arising out of or relating to this Agreement or the breach thereof shall be
settled exclusively by arbitration in accordance with the laws of the State of
North Carolina by three arbitrators, one of whom shall be appointed by the
Company, one by the Executive and the third by the first two arbitrators. If the
first two arbitrators cannot agree on the appointment of a third arbitrator,
then the third arbitrator shall be appointed by the American Arbitration
Association in the City of Charlotte, North Carolina. Such arbitration shall be
conducted in the City of Charlotte, North Carolina in accordance with the rules
of the American Arbitration Association for commercial arbitrations, except with
respect to the selection of arbitrators which shall be as provided in this
Section 8(d). Judgment upon the award rendered by the arbitrators may be entered
in any court having jurisdiction thereof.

         9. Assignment; Prior Agreements. Neither the Company nor the Executive
may make any assignment of this Agreement or any interest herein, by operation
of law or otherwise, without the prior written consent of the other party, and
without such consent any attempted transfer shall be null and void and of no
effect. This Agreement shall inure to the benefit of and be binding upon the
Company and the Executive, their respective successors, executors,
administrators, heirs and permitted assigns. In the event of the Executive's
death after a Terminating Event but prior to the completion by the Company of
all payments due him under Section 4(a) and (b) of this Agreement, the Company
shall continue such payments to the Executive's beneficiary designated in
writing to the Company prior to his death (or to his estate, if the Executive
fails to make such designation).

         10. Enforceability. If any portion or provision of this Agreement shall
to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

         11. Waiver. No waiver of any provision hereof shall be effective unless
made

                                       9
<PAGE>   10

in writing and signed by the waiving party. The failure of any party to require
the performance of any term or obligation of this Agreement, or the waiver by
any party of any breach of this Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.

         12. Notices. Any notices, requests, demands and other communications
provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by registered or certified mail, postage prepaid, to the
Executive at the last address the Executive has filed in writing with the
Company, or to the Company at its main office, attention of the Board.

         13. Effect on Other Plans. An election by the Executive to resign after
a Change in Control under the provisions of this Agreement shall not be deemed a
voluntary termination of employment by the Executive for the purpose of
interpreting the provisions of any of the Company's benefit plans, programs or
policies. Nothing in this Agreement shall be construed to limit the rights of
the Executive under the Company's benefit plans, programs or policies except as
otherwise provided in Section 5 hereof, and except that the Executive shall have
no rights to any severance benefits under any severance pay plan other than cash
amounts specifically set forth in the Employment Agreement or this Agreement.

         14. Amendment. This Agreement may be amended or modified only by a
written instrument signed by the Executive and by a duly authorized
representative of the Company.

         15. Governing Law. This Agreement shall be construed under and be
governed in all respects by the laws of the State of North Carolina.

         16. Obligations of Successors. In addition to any obligations imposed
by law upon any successor to the Company, the Company will use its best efforts
to require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

         17. Confidential Information. The Executive shall never use, publish or
disclose in a manner adverse to the Company's interests, any proprietary or
confidential information relating to (a) the business, operations or properties
of the Company or any Subsidiary or other affiliate of the Company, or (b) any
materials, processes, business practices, technology, know-how, research,
programs or other information used in the business of the Company or any
Subsidiary or other affiliate of the Company, provided, however, that no breach
or alleged breach of this Section 17 shall entitle the Company to fail to comply
fully and in a timely manner with any other provision hereof. Nothing in this
Agreement shall preclude the Company from seeking money damages, or equitable
relief by injunction or otherwise without the necessity of proving actual damage
to the Company, for any breach by the Executive hereunder.

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, this Agreement has been executed as a sealed
instrument by the Company by its duly authorized officer, and by the Executive,
as of the date first above written.

                                COMPANY:

                                    SUMMIT PROPERTIES INC.

                                    By: /s/ STEVEN R. LEBLANC
                                        ---------------------
                                    Name: Steven R. LeBlanc
                                    Title: President and Chief Operating Officer

                                EXECUTIVE:

                                    /s/ ROBERT R. KILROY
                                    --------------------
                                    Robert R. Kilroy

                                       11

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