Second Amendment to Employment Agreement by and among Kramont Operating Partnership, L.P., Kramont Realty Trust, and Carl E. Kraus

Summary

This amendment updates the employment agreement between Kramont Operating Partnership, L.P., Kramont Realty Trust, and Carl E. Kraus. It extends Mr. Kraus's employment through June 30, 2004, sets his base salary at $210,000 per year, and grants him four weeks of vacation. Additionally, Mr. Kraus will receive 5,981 restricted shares of common stock under a separate share grant agreement. All other terms of the original employment agreement remain in effect.

EX-10.86 7 w95171exv10w86.txt SECOND AMENDMENT TO EMPLOYEE AGREEMENT EXHIBIT 10.86 SECOND AMENDMENT TO EMPLOYMENT AGREEMENT This Second Amendment (this "Second Amendment") is dated effective July 1, 2003 by and among Kramont Operating Partnership, L.P., a Delaware limited partnership (the "Company"), Kramont Realty Trust, a Maryland real estate investment trust ("Kramont") and Carl E. Kraus ("Executive"). BACKGROUND WHEREAS, the parties hereto entered into an Employment Agreement effective as of March 21, 2002, as amended by First Amendment dated July 1, 2002, (herein referred to as "Employment Agreement"), wherein the parties agreed to the terms and conditions of Executive's employment with the Company; and WHEREAS, the parties hereto desire to further amend certain of the terms and conditions of the Employment Agreement. NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows: 1. All capitalized terms used herein, but not otherwise defined, shall have the meanings ascribed in the Employment Agreement. 2. Subject to the provisions contained in Paragraph 3 of the Employment Agreement, the Term of Employment is hereby extended to June 30, 2004 (the "Extended Term of Employment"). 3. During the Extended Term of Employment, Executive's Base Salary shall be $210,000.00 payable in equal bi-weekly installments in accordance with the Company's normal payroll practices. 4. Subject to the provisions contained in Paragraph 5 of the Employment Agreement, it is agreed and understood that that Executive shall be entitled to four (4) weeks of vacation. 5. In accordance with the Kramont 2000 Incentive Plan, the Company hereby grants the Executive 5,981 restricted shares of common stock under the terms and conditions contained in a share grant letter agreement (the "Share Grant Agreement"), the form of which is attached hereto and made a part hereof as Exhibit "A". Simultaneous with the execution of this Third Amendment, Executive agrees to execute and deliver to the Company the Share Grant Agreement. 6. This Second Amendment and the Employment Agreement represent the entire understanding between the parties and supercede all other oral or written agreements between the parties. The Employment Agreement, as amended by this Second Amendment, is hereby ratified and confirmed and remains in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed and delivered this Second Amendment as of the date and year first above written. KRAMONT OPERATING PARTNERSHIP, L.P. By: ________________________________________ Louis P. Meshon, Sr. President KRAMONT REALTY TRUST By: ________________________________________ Louis P. Meshon, Sr. President Executive By: ________________________________________ Carl E. Kraus