Exhibit 10.38
Kite Realty Group Trust
Schedule of 2005 Bonus Benchmarks for Executive Officers
On March 15, 2005, the Compensation Committee (the “Committee”), of the Board of Trustees of Kite Realty Group Trust (the “Company”), met and approved the establishment of benchmarks to determine 2005 bonuses for the Company’s executive officers. Such bonuses will be paid in early 2006. The Company’s executive officers participate in the Kite Realty Group Trust Executive Bonus Plan, filed as Exhibit 10.27 to the Company’s Current Report on Form 8-K, dated August 20, 2005.
The Committee determined that 2005 annual bonuses will be based on objective and subjective criteria and both corporate and individual performance. The principal corporate performance measures will consist of:
(i) funds from operations (“FFO”), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investments Trusts (to be determined prior to impairment losses);
(ii) new development projects; and
(iii) acquisitions of properties.
The Committee will measure corporate and individual performance to determine whether an executive officer has earned a “threshold,” “target,” “superior,” or “outperformance” bonus.
The range of bonuses for each of the Company’s executive officers, other than Mr. Alvin E. Kite, Jr., the Company’s Chairman, expressed as a percentage of the individual’s base salary, is expected to be as set forth below:
Name and Principal Position | 2005 Bonus | |
| Mr. John A. Kite | 0-200% of 2005 base salary | |
President and Chief Executive Officer | ||
| Mr. Thomas K. McGowan | 0-175% of 2005 base salary | |
Executive Vice President and Chief Operating Officer | ||
| Mr. Daniel R. Sink | 0-125% of 2005 base salary | |
Senior Vice President and Chief Financial Officer |
The Committee determined that in the case of both Thomas K. McGowan, the Company’s Executive Vice President and Chief Operating Officer and Daniel R. Sink, the Company’s Senior Vice President and Chief Financial Officer, approximately 80% of their bonuses will be based on achievement of corporate goals, with the remainder of their bonus to be determined based on the achievement of individual goals. In the case of John A. Kite, the Company’s President and Chief Executive Officer, the Committee determined that his bonus will be based entirely on achievement of corporate goals.
The Committee will determine the bonus for Alvin E. Kite, Jr., the Company’s Chairman, separately on an annual basis.
