Document:

Exhibit
4.1

 

	
  Number

  	
   

  	
  Shares

  

 

 

KITE REALTY GROUP TRUST

A Real
Estate Investment Trust organized under the laws of the State of Maryland

 

 

CUSIP 49803T 10 2

 

See Reverse for Certain Definitions and Legends

 

 

THIS CERTIFIES THAT

 

is the owner of 

 

FULLY-PAID AND NONASSESSABLE COMMON SHARES, $.01 PAR VALUE, OF

 

KITE REALTY GROUP TRUST

 

transferable on the books of
the Trust by the holder hereof in person or by duly authorized attorney, upon
surrender of this Certificate properly endorsed.  This Certificate and the shares represented
hereby are issued and shall be subject to all the provisions of the Declaration
of Trust, as amended, and the Bylaws of the Trust (copies of which are on file
at the office of the Transfer Agent), to all of which the holder of this
Certificate by acceptance hereof assents. 
This Certificate is not valid unless countersigned and registered by the
Transfer Agent and Registrar.

 

WITNESS the facsimile seal
of the Trust and the facsimile signatures of its duly authorized officers.

 

	
  Dated

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [seal]

  	
   

  
	
  Chief Executive Officer and President

  	
   

  	
  Secretary

  

 

COUNTERSIGNED
AND REGISTERED:

LASALLE BANK NATIONAL ASSOCATION

(CHICAGO, ILLINOIS)

TRANSFER AGENT

AND REGISTRAR

 

	
   

  	
   

  
	
  AUTHORIZED OFFICER

  

 

 

KITE REALTY GROUP TRUST

 

The
trust will furnish to any Shareholder on request and without charge a full
statement of the designations and any preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends or distributions,
qualifications, and terms and conditions of redemption of the shares of each
class which the Trust is authorized to issue, of the differences in the
relative rights and preferences between the shares of each series of a
preferred or special class which the Trust is authorized to issue in series, to
the extent they have been set, and of the authority of the Board of Trustees to
set the relative rights and preferences of subsequent series of a preferred or
special class of shares.  Such request
may be made to the secretary of the Trust or to its transfer agent.

 

The
shares represented by this certificate are subject to restrictions on
Beneficial, Constructive Ownership and Transfer for the purpose of the Trust’s
maintenance of its status as a real estate investment trust (a “REIT”) under
the Internal Revenue Code of 1986, as amended (the “Code”).  Subject to certain further restrictions and
except as expressly provided in the Trust’s Declaration of Trust, (i) no Person
may Beneficially Own or Constructively Own Common Shares of the Trust in excess
of 7 percent (in value or number of shares) of the outstanding Common Shares
and no Person may Beneficially Own or Constructively Own Common Shares of the
Trust in excess of 9.8 percent (in value or number of shares) of the
outstanding shares of such class or series of Preferred Shares of the Trust,
other than (A) an Excepted Holder, or (B) a Designated Investment Entity, (ii)
a Designated Investment Entity may not Beneficially Own or Constructively Own
Common Shares of the Trust in excess of 9.8 percent (in value or number of
shares) of the outstanding Common Shares of the Trust; (iii) no Person may
Beneficially Own Shares that would result in the Trust being “closely held”
under Section 856(h) of the Code or otherwise cause the Trust to fail to
qualify as a REIT; and (iv) no Person may Transfer Shares if such Transfer
would result in Shares of the Trust being owned by fewer than 100 Persons.  An “Excepted Holder” means a shareholder of
the Trust for whom an Excepted Holder Limit is provided in the Trust’s Declaration
of Trust.  Any Person who Beneficially
Owns or Constructively Owns or attempts to Beneficially Own or Constructively
Own Shares which cause or will cause a Person to Beneficially Own or
Constructively Own Shares in excess or in violation of the limitations set
forth in the Trust’s Declaration of Trust must immediately notify the
Trust.  If any of the restrictions on
transfer or ownership are violated, the Shares represented hereby will be
automatically transferred to a Charitable Trustee of a Charitable Trust for the
benefit of one or more Charitable Beneficiaries.  In addition, upon the occurrence of certain
events, attempted Transfers in violation of the restrictions described above
may be void ab initio.  A Person who attempts to Beneficially Own or
Constructively Own Shares in violation of the ownership limitations described
above shall have no claim, cause of action, or any recourse whatsoever against
a transferor of such Shares.  All
capitalized terms in this legend have the meanings defined in the Trust’s
Declaration of Trust, as the same may be amended from time to time, a copy of
which, including the restrictions on transfer and ownership, will be furnished
to each holder of Shares of the Trust on request and without charge.

 

 

Keep this certificate in a
safe place.  If it is lost, stolen, or
destroyed, the Trust will require a bond of indemnity as a condition to the
issuance of a replacement certificate.

 

 

The following abbreviations,
when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws
or regulations:

 

TEN COM = as tenants in
common

TEN ENT = as tenants by the
entireties

JT TEN = as joint tenants
with right of survivorship and not as tenants in common

 

	
  UNIF GIFT MIN ACT –

  	
   

  	
   Custodian

  	
   

  	
   

  
	
   

  	
  (Cust)  

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
  under Uniform Gifts to Minors

  	
   

  
	
   

  	
  Act

  	
   

  	
   

  
	
   

  	
   

  	
  (State)

  	
   

  
							

 

Additional abbreviations may
also be used though not in the above list.

 

For value received,
                                     
hereby sell, assign and transfer unto

 

	
   

  
	
  (Please
  insert social security or other identifying number of assignee)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Please
  print or typewrite name and address including postal zip code of assignee)

  

 

                                              Shares represented by the within Certificate,

 

and do hereby irrevocably
constitute and appoint
                                                            
Attorney to transfer the said Shares on the books of the within-named Trust
with full power of substitution in the premises.

 

 

	
  Dated

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  SIGNATURE

  
	
  Signature Guaranteed

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  The signature(s) must be
  guaranteed by an Eligible Guarantor Institution (Banks, Stockholders, Savings
  and Loan Associations and Credit Unions with membership in an approved signature
  guarantee Medallion Program), pursuant to S.E.C. Rule 17Ad-15.

  
						

 

 

NOTICE:  The signature to this assignment must
correspond with the name as written upon the face of the Certificate, in every
particular, without alteration or enlargement, or any change whatever.Exhibit 10.4

 

ALVIN E. KITE, JR.

FORM OF EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”)
is dated as of
                      ,
2004, by and between KITE REALTY GROUP TRUST, a Maryland real estate investment
trust (the “Company”), and Alvin
E. Kite, Jr. (the “Executive”).

 

WHEREAS, the
Company and Kite Realty Group, L.P., the general partner of which is the
Company (“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,
including the Executive, have interests, (ii) the Company will acquire
interests in certain service businesses currently owned by persons affiliated
with the Company, including certain businesses of the Executive (the “Service Companies”) 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, the
Executive is currently employed by one of the Service Companies, KMI Realty
Advisors, Inc. (“KMI Realty Advisors”),
or an affiliate of KMI Realty Advisors; and

 

WHEREAS, in
connection with the Kite IPO Transactions, the Company wishes to offer
employment to the Executive, and the Executive wishes to accept such offer, on
the terms set forth below.

 

Accordingly,
the parties hereto agree as follows:

 

1.                                       Term.  The Company hereby employs the Executive, and
the Executive hereby accepts such employment for an initial term commencing as
of the date hereof and ending on December 31, 2007, unless sooner terminated in
accordance with the provisions of Section 4 or Section 5 (the period during
which the Executive is employed hereunder being hereinafter referred to as the
“Term”).  The Term shall be subject to automatic
one-year renewals unless either party hereto notifies the other, in accordance
with Section 7.4, of non-renewal at least ninety (90) days prior to the end of
any such Term.  Notwithstanding the
employment of the Executive by the Company, the Company shall be entitled to
pay the Executive from the payroll of any subsidiary of the Company.

 

2.                                       Duties.  The Executive, in his capacity as Chairman of
the Board and an executive officer of the Company, shall faithfully perform for
the Company the duties of said office and shall perform such other duties of an
executive, managerial or administrative nature as shall be specified and
designated from time to time by the Board of Trustees of the Company (the “Board”) (including the performance of
services for, and serving on the Board of Directors of, any subsidiary or
affiliate of the Company without any additional compensation).  The Executive shall devote a sufficient
portion of the Executive’s business time and effort to the performance of the

 

 

Executive’s duties
hereunder.  The Board may delegate its authority
to take any action under this Agreement to the Compensation Committee of the
Board of Trustees (the “Compensation
Committee”).

 

3.                                       Compensation.

 

3.1                                 Salary.  The Company shall pay the Executive during
the Term a base salary at the rate of $150,000 per annum (the “Annual Salary”), in accordance with the
customary payroll practices of the Company applicable to senior executives
generally.  The Annual Salary may be
increased annually by an amount as may be approved by the Board or the Compensation
Committee, and, upon such increase, the increased amount shall thereafter be
deemed to be the Annual Salary for purposes of this Agreement.

 

3.2                                 Bonus.  The Executive will be eligible to participate
in the Company’s annual bonus plan (the “Bonus
Plan”), the terms of which will be established by the Compensation
Committee.  The Executive may be awarded
such restricted shares, share options and other equity-based awards under the
Company’s equity compensation plan (“Equity
Awards”) as the Compensation Committee determines to be appropriate.

 

3.3                                 Benefits
– In General.  The Executive shall be
permitted during the Term to participate in any group life, hospitalization or
disability insurance plans, health programs, pension and profit sharing plans
and similar benefits that may be available to other senior executives of the
Company generally, on the same terms as may be applicable to such other
executives, in each case to the extent that the Executive is eligible under the
terms of such plans or programs.  During
the Term, the Company shall maintain customary liability insurance for trustees
and officers and list the Executive as a covered officer.

 

With respect
to each such benefit plan and program, service with KMI Realty Advisors or any
of its affiliates (as applicable) shall be included for purposes of determining
eligibility to participate (including waiting periods, and without being
subject to any entry date requirement after the waiting period has been
satisfied), vesting (as applicable) and entitlement to benefits. The medical
plan or plans maintained by the Company shall waive all limitations as to
pre-existing conditions, exclusions and waiting periods with respect to
participation and coverage requirements. With respect to vacation benefits
provided by the Company, the vacation benefit of Executive shall include all
hours of accrued but unused vacation and sick time hours, respectively, with
KMI Realty Advisors or any of its affiliates.

 

3.4                                 Vacation.  During the Term, the Executive shall be
entitled to vacation of four (4) weeks per year.

 

3.5                                 Automobile.  During the Term, the Company will provide the
Executive an allowance of $9,000 per year for the use of an automobile
(including the payment of vehicle insurance). 
At the option of the Company, in lieu of providing such allowance, the
Company will provide the Executive with an automobile of suitable standard to
the Executive’s position.

 

3.6                                 Expenses.  The Company shall pay or reimburse the
Executive for all ordinary and reasonable out-of-pocket expenses actually
incurred (and, in the case of reimbursement, paid) by the Executive during the
Term in the performance of the Executive’s

 

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services under this Agreement;
provided that the Executive submits such expenses in accordance with the
policies applicable to senior executives of the Company generally.

 

4.                                       Termination
upon Death, Disability or Retirement. 
If the Executive dies during the Term, the obligations of the Company to
or with respect to the Executive shall terminate in their entirety except as
otherwise provided under this Section 4. 
If the Executive becomes eligible for disability benefits under the
Company’s long-term disability plans and arrangements (or, if none apply, would
have been so eligible under the most recent plan or arrangement), the Company
shall have the right, to the extent permitted by law, to terminate the
employment of the Executive upon notice in writing to the Executive and such
termination in and of itself shall not be, nor shall it be deemed to be, a
breach of this Agreement; provided, that, the Company will have no right to
terminate the Executive’s employment if, in the opinion of a qualified
physician reasonably acceptable to the Company, it is reasonably certain that the
Executive will be able to resume the Executive’s duties on a regular full-time
basis within 90 days of the date the Executive receives notice of such
termination.

 

Upon death,
other termination of employment by virtue of disability or upon termination by
the Executive without Good Reason (as defined below) (i) the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive)
shall have no right to receive any compensation or benefit hereunder on and
after the Effective Date of the Termination other than Annual Salary earned and
accrued under this Agreement prior to the Effective Date of the Termination,
any bonus for the prior year not yet paid, and other benefits, including
payment for accrued but unused vacation, earned and accrued under this
Agreement prior to the Effective Date of the Termination (and reimbursement
under this Agreement for expenses incurred but not paid prior to the Effective
Date of the Termination) and an amount equal to the product of (x) the Executive’s
target annual bonus for the fiscal year of the Executive’s death, disability or
termination without Good Reason and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the Effective Date of the
Termination, and the denominator of which is 365; (ii) all Equity Awards held
by the Executive shall become fully vested and exercisable; and (iii) this
Agreement shall otherwise terminate upon the Effective Date of the Termination
and there shall be no further rights with respect to the Executive hereunder
(except as provided in Section 7.13). 
For purposes of this Section 4, the “Effective
Date of the Termination” shall mean the date of death, the date on
which a notice of termination by virtue of disability is given or any later
date (within thirty (30) days after the giving of such notice) set forth in
such notice of termination, or in the case of termination by the Executive
without Good Reason, the date of termination specified in such Executive’s
notice of termination.

 

For the
avoidance of doubt, the Executive acknowledges and agrees that the payments set
forth in this Section 4 constitute liquidated damages for termination of his
employment during the Term upon death, by virtue of disability or by the
Executive without Good Reason.

 

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5.                                       Other
Terminations of Employment.

 

5.1                                 Termination
for Cause; Termination of Employment by the Executive Without Good Reason.

 

(a)                                  For purposes of this
Agreement, “Cause” shall mean:

 

(i)                                     the
Executive’s conviction for (or pleading nolo contendere to) any felony;

 

(ii)                                  the
Executive’s commission of an act of fraud, theft or dishonesty related to the
business of the Company or its affiliates or the performance of the Executive’s
duties hereunder;

 

(iii)                               the
willful and continuing failure or habitual neglect by the Executive to perform
the Executive’s duties hereunder;

 

(iv)                              any
material violation by the Executive of the covenants contained in Section 6 or
that certain Non-Competition Agreement dated as of the date hereof between the
Executive and the Company (the “Non-Competition
Agreement”); or

 

(v)                                 the
Executive’s willful and continuing material breach of this Agreement.

 

For purposes of this Section
5.1, no act, or failure to act, by Executive shall be considered “willful”
unless committed in bad faith and without a reasonable belief that the act or
omission was in the best interests of the Company or its subsidiaries.  Notwithstanding the foregoing, if there
exists (without regard to this sentence) an event or condition that constitutes
Cause under clause (iii), (iv) or (v) above, the Executive shall have 30 days
from the date written notice is given by the Company of such event or condition
to cure such event or condition and, if the Executive does so, such event or
condition shall not constitute Cause hereunder.

 

(b)                                 For purposes of this
Agreement, “Good Reason” shall
mean, unless otherwise consented to by the Executive:

 

(i)                                     the
material reduction of the Executive’s authority, duties and responsibilities,
or the assignment to the Executive of duties materially and adversely
inconsistent with the Executive’s position or positions with the Company and
its subsidiaries;

 

(ii)                                  a
reduction in Annual Salary of the Executive except in connection with a
reduction in compensation generally applicable to senior management employees
of the Company;

 

(iii)                               the
failure by the Company to obtain an agreement in form and substance reasonably
satisfactory to the Executive from any successor to the business of the Company
to assume and agree to perform this Agreement;

 

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(iv)                              a
Change in Control (for purposes of this Agreement, “Change in Control” shall mean:

 

(A) the dissolution or liquidation of the Company, (B) the merger,
consolidation, or reorganization of the Company with one or more other entities
in which the Company is not the surviving entity or immediately following which
the persons or entities who were beneficial owners (as determined pursuant to
Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of voting securities of the Company immediately prior thereto cease to
beneficially own more than fifty percent (50%) of the voting securities of the
surviving entity immediately thereafter, (C) a sale of all or substantially all
of the assets of the Company to another person or entity, (D) any transaction
(including without limitation a merger or reorganization in which the Company
is the surviving entity) that results in any person or entity or “group”
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (other
than persons who are shareholders or affiliates immediately prior to the
transaction) owning thirty percent (30%) or more of the combined voting power
of all classes of shares of the Company, or (E) individuals who,
as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board; provided, however, that any individual becoming a
trustee subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a
majority of the trustees then comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for trustee, without written objection to
such nomination) shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of trustees or other
actual or threatened solicitation of proxies or contests by or on behalf of a
person other than the Board);

 

(v)                                 a
requirement by the Company that the Executive’s work location be moved more
than fifty (50) miles from the Company’s principal place of business in
Indianapolis, Indiana; or

 

(vi)                              the
Company’s material and willful breach of this Agreement.

 

Notwithstanding the foregoing,
if there exists (without regard to this sentence) an event or condition that
constitutes Good Reason under clause (i), (ii), (v) or (vi) above, the Company
shall have 30 days from the date on which the Executive gives the written
notice thereof to cure such

 

5

 

event or condition and, if the
Company does so, such event or condition shall not constitute Good Reason
hereunder.  Further, an event or
condition shall cease to constitute Good Reason one (1) year after the event or
condition first occurs.

 

(c)                                  The Company may
terminate the Executive’s employment hereunder for Cause and such termination
in and of itself shall not be, nor shall it be deemed to be, a breach of this
Agreement.  If the Company terminates the
Executive for Cause, (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the Termination
other than Annual Salary and other benefits, including payment for accrued but
unused vacation (but excluding any bonuses except as provided in the Bonus
Plan) earned and accrued under this Agreement prior to the Effective Date of
the Termination (and reimbursement under this Agreement for expenses incurred
but not paid prior to the Effective Date of the Termination); and (ii) this
Agreement shall otherwise terminate upon the Effective Date of the Termination
and the Executive shall have no further rights hereunder (except as provided in
Section 7.13).  For purposes of this
Section 5.1(c), the “Effective Date of the
Termination” shall mean the date on which a notice of termination is
given or any later date (within thirty (30) days after the giving of such
notice) set forth in such notice of termination.

 

(d)                                 In
the event the Company elects not to renew this Agreement as contemplated in
Section 1 above, the Executive shall receive (i) a cash payment equal to one
(1) times the sum of: (x) the Executive’s Annual Salary in effect on the day of
expiration of the Term, and (y) the average bonus actually paid to the
Executive with respect to the prior three (3) calendar years, payable no later
than 30 days after the day of expiration of the Term; and (ii) all Equity
Awards held by the Executive shall become fully vested and exercisable.

 

5.2                                 Termination
Without Cause; Termination for Good Reason. 
The Company may terminate the Executive’s employment at any time without
Cause, for any reason or no reason and the Executive may terminate the Executive’s
employment with the Company for Good Reason. 
If the Company or the Executive terminates the Executive’s employment
and such termination is not described in Section 4 or Section 5.1, (i) the
Executive shall have no right to receive any compensation or benefit hereunder
on and after the Effective Date of the Termination other than Annual Salary
earned and accrued under this Agreement prior to the Effective Date of the
Termination, any bonus for the prior year not yet paid, and other benefits,
including payment for accrued but unused vacation, earned and accrued under
this Agreement prior to the Effective Date of the Termination (and
reimbursement under this Agreement for expenses incurred but not paid prior to
the Effective Date of the Termination) and an amount equal to the product of
(x) the Executive’s target annual bonus for the fiscal year of the Executive’s
termination of employment and (y) a fraction, the numerator of which is the
number of days in the current fiscal year through the Effective Date of the
Termination, and the denominator of which is 365; (ii) the Executive shall
receive a cash payment equal to the Severance Payment payable no later than 30
days after the Effective Date of the Termination; (iii) for one (1) year after
the Effective Date of the Termination, the Company shall continue medical,
prescription and dental benefits to the Executive and/or the Executive’s family
at least equal to those which would have been provided to them in accordance
with the welfare benefit plans, practices, policies and programs provided by
the Company to the extent applicable generally to other peer employees of the
Company and its affiliated companies, as if the Executive’s employment had not
been terminated; provided, however, that if the Executive becomes
reemployed with another employer and is eligible to receive medical,

 

6

 

prescription and dental
benefits under another employer provided plan, the medical, prescription and
dental benefits described herein shall be secondary to those provided under
such other plan during such applicable period of eligibility; (iv) all Equity
Awards held by the Executive shall become fully vested and exercisable; and (v)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13).  The “Severance Payment” means three (3) times
the sum of: (i) the Executive’s Annual Salary in effect on the day of termination
and (ii) the Executive’s Average Annual Bonus. 
The Executive’s “Average Annual Bonus”
means the average bonus actually paid to the Executive with respect to the
prior three (3) calendar years.  For
purposes of this Section 5.2, the “Effective
Date of the Termination” shall mean the date on which a notice of
termination is given or any later date (within thirty (30) days after the
giving of such notice) set forth in such notice of termination, or in the case
of termination of employment by the Executive for Good Reason, the date of
termination specified in such Executive’s notice of termination.

 

5.3                                 Nature
of Payments.  For the avoidance of
doubt, the Executive acknowledges and agrees that the payments set forth in
this Section 5 constitute liquidated damages for termination of his employment
during the Term.

 

6.                                       Confidential
and Proprietary Information.

 

6.1                                 Confidential
Information.  The Executive shall
keep secret and retain in strictest confidence, and shall not use for his
personal benefit or the benefit of others or directly or indirectly disclose,
except as may be required or appropriate in connection with his carrying out
his duties under this Agreement, all confidential information, knowledge or
data relating to the Company or any of its affiliates, or to the Company’s or
any such affiliate’s respective businesses and investments (including
confidential information of others that has come into the possession of the
Company or any such affiliate), learned by the Executive heretofore or
hereafter directly or indirectly from the Company or any of its affiliates and
which is not generally available lawfully and without breach of confidential or
other fiduciary obligation to the general public without restriction (the “Confidential Company Information”), except
with the Company’s express written consent or as may otherwise be required by
law or any legal process.

 

6.2                                 Return
of Documents; Rights to Products. 
All memoranda, notes, lists, records, property and any other tangible
product and documents (and all copies thereof) made, produced or compiled by
the Executive or made available to the Executive concerning the businesses and
investments of the Company and its affiliates shall be the Company’s property
and shall be delivered to the Company at any time on request.  The Executive shall assign to the Company all
rights to trade secrets and other products relating to the Company’s business
developed by him alone or in conjunction with others at any time while employed
by the Company.

 

6.3                                 Rights
and Remedies upon Breach.  The
Executive acknowledges and agrees that any breach by him of any of the
provisions of this Section 6 (the “RestrictiveCovenants”) would result in
irreparable injury and damage for which money damages would not provide an
adequate remedy.  Therefore, if the
Executive breaches, or threatens to commit a breach of, any of the Restrictive
Covenants, the Company and its affiliates shall have the right and remedy to
have the Restrictive Covenants specifically enforced (without posting bond and
without the

 

7

 

need to prove damages) by any
court having equity jurisdiction, including, without limitation, the right to
an entry against the Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations,
threatened or actual, and whether or not then continuing, of such
covenants.  This right and remedy shall
be in addition to, and not in lieu of, any other rights and remedies available
to the Company and its affiliates under law or in equity (including, without
limitation, the recovery of damages). 
The existence of any claim or cause of action by the Executive, whether
predicated on this Agreement or otherwise, shall not constitute a defense to
the enforcement of the Restrictive Covenants.

 

7.                                       Other
Provisions.

 

7.1                                 Severability.  The Executive acknowledges and agrees that
the Executive has had an opportunity to seek advice of counsel in connection
with this Agreement.  If it is determined
that any of the provisions of this Agreement, or any part thereof, is invalid
or unenforceable, the remainder of the provisions of this Agreement shall not
thereby be affected and shall be given full affect, without regard to the
invalid portions.

 

7.2                                 Enforceability;
Jurisdictions.  The Company and the
Executive intend to and hereby confer jurisdiction to enforce the Restrictive
Covenants upon the courts of any jurisdiction within the geographical scope of
the Restrictive Covenants.  If the courts
of any one or more of such jurisdictions hold the Restrictive Covenants wholly
unenforceable by reason of breadth of scope or otherwise it is the intention of
the Company and the Executive that such determination not bar or in any way
affect the Company’s right, or the right of any of its affiliates, to the
relief provided above in the courts of any other jurisdiction within the
geographical scope of such Restrictive Covenants, as to breaches of such
Restrictive Covenants in such other respective jurisdictions, such Restrictive
Covenants as they relate to each jurisdiction’s being, for this purpose,
severable, diverse and independent covenants, subject, where appropriate, to
the doctrine of res judicata.

 

7.3                                 Attorneys’
Fees.  In the event of any legal
proceeding relating to this Agreement or any term or provision thereof, the
losing party shall be responsible to pay or reimburse the prevailing party for
all reasonable attorneys’ fees incurred by the prevailing party in connection
with such proceeding; provided, however, the Executive shall not be required to
pay or reimburse the Company unless the claim or defense asserted by the
Executive was unreasonable.

 

7.4                                 Notices.  All notices, requests, demands, claims, and
other communications hereunder shall be in writing.  Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly delivered (i) two business
days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, (ii) when received if it is sent by facsimile
communication during normal business hours on a business day or one business
day after it is sent by facsimile and received if sent other than during
business hours on a business day, (iii) one business day after it is sent
via a reputable overnight courier service, charges prepaid, or (iv) when
received if it is delivered by hand, in each case to the intended recipient as
set forth below:

 

8

 

(i)                                     If to the Company,
to:

 

Kite Realty
Group Trust

30 S. Meridian
Street

Suite 1100

Indianapolis,
IN  46204

Attention:

Facsimile:  (317) 577 - 5605

 

(ii)                                  If to the Executive,
to:

 

Alvin E. Kite,
Jr. 

 

 

 

with copies in
either case (which shall not constitute

notice) to:

 

Hogan &
Hartson L.L.P.

555 13th Street, NW

Washington, DC 20004

Attention:  William L. Neff, Esq.

Facsimile:  (202) 637-5910

 

and

 

Barnes & Thornburg LLP

11 South Meridian

Indianapolis, IN 46204

Attention: Robert D. MacGill, Esq.

Facsimile: (317) 231-7433

 

Any such person may by notice
given in accordance with this Section to the other parties hereto designate
another address or person for receipt by such person of notices hereunder.

 

7.5                                 Entire
Agreement.  This Agreement, together
with the exhibits hereto and the Noncompetition Agreement, contains the entire agreement
between the parties with respect to the subject matter hereof and supersedes
all prior agreements, written or oral, with the Company or its subsidiaries (or
any predecessor of either).

 

7.6                                 Waivers
and Amendments.  This Agreement may
be amended, superseded, canceled, renewed or extended, and the terms hereof may
be waived, only by a written instrument

 

9

 

signed by the parties or, in
the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any such right, power
or privilege nor any single or partial exercise of any such right, power or
privilege, preclude any other or further exercise thereof or the exercise of
any other such right, power or privilege.

 

7.7                                 GOVERNING
LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF INDIANA
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

7.8                                 Assignment.  This Agreement, and the Executive’s rights
and obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void.  In the event of any Change in Control, the
Company may assign this Agreement and its rights hereunder.

 

7.9                                 Withholding.  The Company shall be entitled to withhold
from any payments or deemed payments any amount of withholding required by
law.  No other taxes, fees, impositions,
duties or other charges or offsets of any kind shall be deducted or withheld
from amounts payable hereunder, unless otherwise required by law.

 

7.10                           No
Duty to Mitigate.  The Executive
shall not be required to mitigate damages or the amount of any payment provided
for under this Agreement by seeking other employment or otherwise, nor will any
payments hereunder be subject to offset in the event the Executive does
mitigate.

 

7.11                           Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns, heirs, executors and legal representatives.

 

7.12                           Counterparts.  This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original but all such counterparts together shall constitute one
and the same instrument.  Each
counterpart may consist of two copies hereof each signed by one of the parties
hereto.

 

7.13                           Survival.  Anything contained in this Agreement to the
contrary notwithstanding, the provisions of Sections 6 and 7 (to the extent
necessary to effectuate the survival of Sections 6 and 7) shall survive
termination of this Agreement and any termination of the Executive’s employment
hereunder.

 

7.14                           Existing
Agreements.  Executive represents to
the Company that the Executive is not subject or a party to any employment or
consulting agreement, non-competition covenant or other agreement, covenant or
understanding which might prohibit the Executive from executing this Agreement
or limit the Executive’s ability to fulfill the Executive’s responsibilities
hereunder.

 

7.15                           Headings.  The headings in this Agreement are for
reference only and shall not affect the interpretation of this Agreement.

 

10

 

7.16                           Parachute
Provisions.  If any amount payable to
or other benefit receivable by the Executive pursuant to this Agreement is
deemed to constitute a Parachute Payment (as defined below), alone or when added
to any other amount payable or paid to or other benefit receivable or received
by the Executive which is deemed to constitute a Parachute Payment (whether or
not under an existing plan, arrangement or other agreement), and would result
in the imposition on the Executive of an excise tax under Section 4999 of the
Internal Revenue Code of 1986, as amended, then, in addition to any other
benefits to which the Executive is entitled under this Agreement, the Executive
shall be paid by the Company an amount in cash equal to the sum of the excise
taxes payable by the Executive by reason of receiving Parachute Payments plus
the amount necessary to put the Executive in the same after-tax position
(taking into account any and all applicable federal, state and local excise,
income or other taxes at the highest applicable rates on such Parachute
Payments and on any payments under this Section 7.17 ) as if no excise taxes
had been imposed with respect to Parachute Payments.  The amount of any payment under this Section
7.17 shall be computed by a certified public accounting firm mutually and
reasonably acceptable to the Executive and the Company, the computation
expenses of which shall be paid by the Company. 
“Parachute Payment” shall
mean any payment deemed to constitute a “parachute payment” as defined in
Section 280G of the Internal Revenue Code of 1986, as amended.

 

7.17                           Certain
Definitions.  For purposes of this
Agreement:

 

(a)                                  an “affiliate” of any
person means another person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such first person, and includes subsidiaries. 
Notwithstanding the foregoing, the persons listed on Exhibit A,
as such Exhibit A is updated from time to time by the mutual agreement
of the parties, shall not be affiliates of the Company.

 

(b)                                 A “business day” means
the period from 9:00 am to 5:00 pm on any weekday that is not a banking holiday
in New York City, New York.

 

(c)                                  A “subsidiary” of any
person means another person, an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient to elect at
least a majority of its board of directors or other governing body (or, if
there are no such voting interests or no board of directors or other governing
body, 50% or more of the equity interests of which) is owned directly or
indirectly by such first person.

 

11

 

IN WITNESS WHEREOF, the parties hereto have
signed their names as of the day and year first above written.

 

	
   

  	
  KITE REALTY
  GROUP TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALVIN E.
  KITE, JR.

  
					

 

12

 

EXHIBITS TO THE EMPLOYMENT AGREEMENT*

 

 

Exhibit A                                               Exclusion
From Affiliates

 

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

 

13

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