Document:

EX-10.5

 

Exhibit 10.5

EMPLOYEE/CONSULTANT
RESTRICTED STOCK AWARD AGREEMENT
RESTRICTED
STOCK AWARD (#) _______________

THOR INDUSTRIES, INC.

2006 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AWARD CERTIFICATE

     THIS IS TO CERTIFY that Thor Industries, Inc., a Delaware corporation (the “Company”), has
offered you (“Grantee”) the right to receive Common Stock (the “Stock” or “Shares”) of the Company
under its 2006 Equity Incentive Plan (the “Plan”), as follows:

	 	 	 	 	 
	Name of Grantee:

	 	 
 

	 	 
	 
	 	 	 	 
	Address of Grantee:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Number of Shares:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Grant Date:
	 	 	 	 
	 

	 	 	 	 

Vesting Schedule1:

	 	 	 
	Anniversary of the	 	Percentage of the
	Grant Date	 	Award Vested
	 	 	 
	 	 	 
	 	 	 

     By your signature and the signature of the Company’s representative below, you and the Company
agree to be bound by all of the terms and conditions of the Restricted Stock Award Agreement, which
is attached hereto as Annex I and the Plan (both incorporated herein by this reference as if set
forth in full in this document). By executing this Certificate, you hereby irrevocably elect to
accept the Restricted Stock Award rights granted pursuant to this Certificate and the related
Restricted Stock Award Agreement and to receive the shares of Restricted Stock of Thor Industries,
Inc. designated above subject to the terms of the Plan, this Certificate and the Restricted Stock
Award Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	GRANTEE:	 	 	 	THOR INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	As determined by the Administrator under the Plan.

 

 

ANNEX I

THOR INDUSTRIES, INC.

2006 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

     This Restricted Stock Award Agreement (this “Agreement”), is made and entered into on the
Grant Date of the Restricted Stock Award Certificate to which it is attached (the “Certificate”),
by and between Thor Industries, Inc., a Delaware corporation (the “Company”), and the Director,
Employee or Consultant (“Grantee”) named in the Certificate.

     Pursuant to the Thor Industries, Inc. 2006 Equity Incentive Plan (the “Plan”), the
Administrator of the Plan has authorized the grant to Grantee of the right to receive shares of the
Company’s Common Stock (the “Award”), upon the terms and subject to the conditions set forth in
this Agreement and in the Plan. Except as otherwise provided herein, or unless the context clearly
indicates otherwise, capitalized terms not otherwise defined herein shall have the same definitions
as provided in the Plan.

     NOW, THEREFORE, in consideration of the premises and the benefits to be derived from the
mutual observance of the covenants and promises contained herein and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

     1. Basis for Award. This Award is made pursuant to the Plan for valid consideration
provided to the Company by Grantee. By your execution of the Certificate, you agree to accept the
Restricted Stock Award rights granted pursuant to the Certificate and this Agreement and to receive
the shares of Restricted Stock of the Company designated in the Certificate subject to the terms of
the Plan, the Certificate and this Agreement.

     2. Restricted Stock Award. The Company hereby awards and grants to Grantee, for valid
consideration with a value in excess of the aggregate par value of the Common Stock awarded to
Grantee, the number of shares of Common Stock of the Company set forth in the Certificate, which
shall be subject to the restrictions and conditions set forth in the Plan, the Certificate and this
Agreement (the “Restricted Stock”). One or more stock certificates representing the number of
Shares specified in the Certificate shall hereby be registered in Grantee’s name (the “Stock
Certificate”), but shall be deposited and held in the custody of the Company for Grantee’s account
as provided in Section 8 hereof until such Restricted Stock becomes vested.

     3. Vesting and Termination of Continuous Service. The Restricted Stock shall vest and
restrictions on transfer shall lapse subject to the Vesting Schedule set forth in the Certificate.
Upon the occurrence of a Change in Control, the Restricted Stock shall become 100% vested on such
event and the restrictions on transfer shall lapse. The shares of Restricted Stock which have not
vested in accordance with the Certificate (the “Unvested Shares”) shall become vested and the
restrictions on transfer shall lapse upon the earliest to occur of Grantee’s death, Disability,
attainment of Retirement Age while still in Continuous Service, or termination of Continuous
Service by the Company or its Affiliates without Cause. If Grantee ceases

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Continuous Service for any other reason (including termination by the Company or its
Affiliates for Cause), the Unvested Shares shall be forfeited immediately and cancelled as
outstanding shares of Common Stock. Prior to vesting, all Unvested Shares shall be subject to the
restrictions set forth in this Agreement. For purposes of this Agreement, Retirement Age shall
mean age 65 or any other age determined by the Committee.

     4. Compliance with Laws and Regulations. The issuance, transfer, vesting, and
ownership of Common Stock shall be subject to compliance by the Company and Grantee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Grantee agrees to cooperate with the Company to ensure compliance with such
laws and requirements. Prior to issuance or transfer of Common Stock, the Company may require
Grantee to execute and deliver a letter of investment intent in such form and containing such
provisions as requested by the Administrator.

     5. Tax Withholding.

          (a) Grantee agrees that, no later than the first to occur of (i) the date as of which the
restrictions on the Restricted Stock shall lapse with respect to all or any of the Restricted Stock
covered by this Agreement or (ii) the date required by Section 5(b) below, Grantee shall pay to the
Company (in cash) any federal, state, or local taxes of any kind required to be withheld, if any,
with respect to the Restricted Stock for which the restrictions shall lapse. The Company shall, to
the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to
Grantee any federal, state or local taxes of any kind required by law to be withheld with respect
to the shares of such Common Stock.

          (b) Grantee may elect, within thirty (30) days of the Grant Date, to include in gross income
for federal income tax purposes an amount equal to the Fair Market Value of the Restricted Stock
less the amount, if any, paid by Grantee (other than by prior services) for the Restricted Stock
granted hereunder pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended. In
connection with any such Section 83(b) election, Grantee shall pay to the Company, or make such
other arrangements satisfactory to the Administrator to pay to the Company based on the Fair Market
Value of the Restricted Stock on the Grant Date, any federal, state or local taxes required by law
to be withheld with respect to such Shares at the time of such election. If Grantee fails to make
such payments, the Company shall, to the extent permitted by law, have the right to deduct from any
payment of any kind otherwise due to Grantee any federal, state or local taxes required by law to
be withheld with respect to such Shares.

     6. No Right to Continued Service. Nothing in this Agreement shall be deemed by
implication or otherwise to impose any limitation on any right of the Company to terminate
Grantee’s service at any time and for any reason.

     7. Representations and Warranties of Grantee. Grantee represents and warrants to the
Company that:

          (a) Agrees to Terms of the Plan and the Agreement. Grantee has received a copy of the
Plan, the Certificate, and this Agreement and has read and understands the terms

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thereof. Grantee acknowledges that there may be adverse tax consequences upon the vesting of
Restricted Stock or disposition of the shares of Common Stock once vested, and that Grantee should
consult a tax advisor prior to such time.

          (b) Stock Ownership. Grantee is the record and beneficial owner of the shares of
Restricted Stock with full right and power to vote and receive dividends on such shares;
provided, that, Grantee understands that the stock certificates evidencing the
Restricted Stock will bear a legend referencing this Agreement. Any dividends which are paid in
cash shall be distributed to Grantee as soon as practicable. If any dividends are paid in Common
Stock during an applicable period of restriction, Grantee shall receive such shares subject to the
same restrictions as the Restricted Stock with respect to which they were issued.

     8. Restrictions on Unvested Shares.

          (a) Deposit of the Unvested Shares. Grantee shall deposit all of the Unvested Shares
with the Company to hold until the Unvested Shares become vested, at which time such vested shares
shall no longer constitute Unvested Shares. Grantee shall execute and deliver to the Company,
concurrently with the execution of this Agreement blank stock powers for use in connection with the
transfer to the Company or its designee of Unvested Shares that do not become vested. The Company
will deliver to Grantee the Stock Certificate for the shares of Common Stock that become vested
upon vesting of such shares.

          (b) Restriction on Transfer of Unvested Shares. Grantee shall not sell, transfer,
assign, grant a lien or security interest in, pledge, hypothecate as collateral for a loan or as
security for the performance of any obligation or for any other purpose, encumber or otherwise
dispose of any of the Unvested Shares, except as permitted by this Agreement.

     9. Adjustments. This Award is subject to the adjustment provisions set forth in the
Plan.

     10. Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. Grantee understands and agrees that the Company will place the legends
set forth below or similar legends on any stock certificate(s) evidencing the Common Stock,
together with any other legends that may be required by state or U.S. Federal securities laws, the
Company’s Certificate of Incorporation or Bylaws, any other agreement between Grantee and the
Company or any agreement between Grantee and any third party:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND
TRANSFER, AS SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL
HOLDER OF THESE SHARES. SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF
THESE SHARES.

          (b) Stop-Transfer Instructions. Grantee agrees that, to ensure compliance with the
restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer”
instructions to its transfer agent, if any, and if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records.

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          (c) Refusal to Transfer. The Company will not be required (i) to transfer on its books
any shares of Common Stock that have been sold or otherwise transferred in violation of any of the
provisions of this Agreement or (ii) to treat as owner of such shares, or to accord the right to
vote or pay dividends to any purchaser or other transferee to whom such shares have been so
transferred.

     11. Restrictive Covenants.

          (a) Confidentiality. In consideration of the Award, Grantee agrees to keep
confidential all information of a proprietary or confidential nature belonging to the Company or
any of its Affiliates, including but not limited to, business plans, files, records, data,
documents, plans, research, development, policies, customer or client lists, price lists, the name
and address of suppliers, customers or representatives, or any other matters of any kind or
description, relating to the products, devices, suppliers, customers, clientele, sales or business
of the Company or any of its Affiliates (i)  obtained by Grantee during Continuous Service and
(ii)  not otherwise public knowledge (other than by reason of an unauthorized act by Grantee).
After termination of Continuous Service, Grantee shall not, without the prior written consent of
the Company, unless compelled pursuant to an order of a court or other body having jurisdiction
over such matter, communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it.

          (b) Non-solicitation and Non-competition. In consideration of the Award, Grantee
agrees not to (i) directly or indirectly, solicit or recruit any individual employed by the Company
or its Affiliates for the purpose of being employed directly or indirectly by Grantee or by any
competitor of the Company on whose behalf Grantee is acting as an agent, representative or
employee, or convey any confidential information or trade secrets regarding other employees of the
Company or its Affiliates to any other person during Continuous Service and for a period of
eighteen (18) months thereafter; or (ii) directly or indirectly, influence or attempt to influence
customers of the Company or any of its Affiliates to direct their business to any competitor of the
Company during Continuous Service and for a period of eighteen (18) months thereafter; or (iii)
compete with the Company in the recreational vehicle business or the bus business while Grantee is
in Continuous Service and for a period of eighteen (18) months thereafter.

     12. Modification. Except as specifically provided in the Plan, the Agreement may not
be modified except in writing signed by both parties.

     13. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Grantee or the Company to the Administrator for review. The resolution of such a
dispute by the Administrator shall be final and binding on the Company and Grantee.

     14. Entire Agreement. The terms and provisions of the Plan are incorporated herein by
reference. In the event of a conflict or inconsistency between the terms and provisions of the
Plan, the Certificate, and this Agreement, the Plan shall govern and control. This Agreement, the
Certificate and the Plan constitute the entire agreement of the parties and supersede all prior
undertakings and agreements with respect to the subject matter hereof.

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     15. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Grantee shall
be in writing and addressed to Grantee at the address indicated on the signature page hereof or to
such other address as such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: (a) personal delivery; (b) five (5)
days after deposit in the United States mail by certified or registered mail (return receipt
requested); (c) two (2) business days after deposit with any return receipt express courier
(prepaid); or (d) one (1) business day after transmission by facsimile.

     16. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Grantee and Grantee’s heirs, executors, administrators, legal
representatives, successors and assigns.

     17. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without giving effect to its conflict of law principles. If
any provision of this Agreement is determined by a court of law to be illegal or unenforceable,
then such provision will be enforced to the maximum extent possible and the other provisions will
remain fully effective and enforceable.

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EXHIBIT A

THOR INDUSTRIES, INC. 2006 EQUITY INCENTIVE PLAN

 

 

EXHIBIT B

STOCK POWER

(To be left blank except for signature)

For value received, the undersigned does hereby sell, assign and transfer unto Thor Industries,
Inc. ___ shares of Common Stock of Thor Industries, Inc. represented by

	 	 	 	 	 
	certificate number

	 	           (#)
 

	 	 

standing in the name of the undersigned.

	 	 	 	 	 
	The undersigned does hereby irrevocably constitute and appoint

	 	 
 

	 	 

 

attorney to transfer the foregoing on the books of the within named company, with full power of
substitution in the premises.

This stock power may only be used in accordance with the Restricted Stock Agreement by and between
Thor Industries, Inc. and the undersigned dated as of [                    ], and any amendments
thereto.

	 	 	 	 	 
	Dated:

	 	 
 

	 	 

	 	 	 	 	 
	Signature:

	 	 
 

	 	 

Signature must correspond EXACTLY to the name shown in the certificate.

 

 

EXHIBIT C

Section 83(b) Election Form

Attached is an Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION
83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE GRANT DATE. In order to make the election,
you must completely fill out the attached form and file one copy with the Internal Revenue Service
office where you file your tax return. In addition, one copy of the statement also must be
submitted with your income tax return for the taxable year in which you make this election.
Finally, you also must submit a copy of the election form to the Company within ten (10) days after
filing that election with the Internal Revenue Service. A Section 83(b) election normally cannot
be revoked. 

 

 

THOR INDUSTRIES, INC. 2006 EQUITY INCENTIVE PLAN

 

Election to Include Value of Restricted Stock in Gross Income

in Year of Transfer Under Internal Revenue Code Section 83(b)

 

     Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days after
receiving the property described herein to be taxed immediately on its value specified in item 5
below.

	1.	 	My General Information:

	 	 	 	 	 	 	 
	 

	 	Name:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	S.S.N.	 	 	 	 
	 

	 	or T.I.N.:	 	 	 	 
	 

	 	 	 	 	 	 

	2.	 	Description of the property with respect to which I am making this election:

                    shares of Restricted Stock of Thor Industries, Inc.

	3.	 	The shares of Restricted Stock were transferred to me on                      ___, 20___. This
election relates to the 20___calendar taxable year.

	4.	 	The shares of Restricted Stock are subject to the following restrictions:

The shares of Restricted Stock are forfeitable until they are vested in accordance
with Section 7.1 of the Thor Industries, Inc. 2006 Equity Incentive Plan (the
“Plan”) and the Restricted Stock Award Agreement (the “Award Agreement”) entered
into between me and Thor Industries, Inc. on ___, 20___. The shares of
Restricted Stock are not transferable until my interest becomes vested and
nonforfeitable, pursuant to the Award Agreement and the Plan.

	5.	 	Fair market value:

The fair market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms will never lapse) of the
shares of Restricted Stock with respect to which I am making this election is $___
per share.

	6.	 	Amount paid for Restricted Stock:

The
amount I paid for the Restricted Stock is $ __per share.

 

 

	7.	 	Furnishing statement to employer:

A copy of this statement has been furnished to my employer, Thor Industries, Inc.
If the transferor of the Restricted Stock is not my employer, that entity also has
been furnished with a copy of this statement.

	8.	 	Award Agreement or Plan not affected:

Nothing contained herein shall be held to change any of the terms or conditions of
the Award Agreement or the Plan.

Dated:                      __, 200_.exv10w1

 

Exhibit 10.1

SETTLEMENT AGREEMENT

     SETTLEMENT AGREEMENT, dated this 5th day of May, 2008 (“Agreement”), by and among
James W. Sight and Feldman Mall Properties, Inc., a Maryland corporation (the “Company”).

     WHEREAS, Mr. Sight has made certain filings on Schedule 13D (all such filings on Schedule 13D
made by Mr. Sight with respect to the Company, the “Sight 13D”) with the Securities and
Exchange Commission (the “SEC”) disclosing, among other things, that he beneficially owns
880,500 shares of common stock, par value $0.01 per share, of the Company;

     WHEREAS, Mr. Sight has submitted to the Company a purported notice (the “Notice”) of
his intention to (i) nominate a slate of nominees for election to the Company’s Board of Directors
(the “Board”) at the Company’s 2008 annual meeting of stockholders (the “2008 Annual
Meeting”), and (ii) solicit proxies for the election of his purported nominees at the 2008
Annual Meeting (the “Proxy Solicitation”); and

     WHEREAS, the Company and Mr. Sight are in disagreement as to whether the Notice satisfies the
requirements of the Company’s Bylaws; and

     WHEREAS, the Company and Mr. Sight have determined that the interests of the Company and its
stockholders would be best served by (i) avoiding the substantial expense, disruption and adverse
publicity that would result from contesting the validity of the Notice, the Proxy Solicitation or
any potential proxy solicitation and (ii) the other agreements, covenants, rights and benefits as
provided herein.

     NOW, THEREFORE, in consideration of the foregoing premises and the respective representations,
warranties, covenants, agreements and conditions hereinafter set forth, and, intending to be
legally bound hereby, the parties hereby agree as follows:

     1. 2008 Annual Meeting; Related Matters.

     (a) Mr. Sight hereby irrevocably withdraws the Notice and his nomination of each of Charles L.
Frischer, James W. Sight and Mark S. Tennenbaum (and any substitutions for such individuals) for
election to the Board at the 2008 Annual Meeting and confirms that he waives his right to nominate
any persons to serve as directors, to make any other proposal or to present any other item of
business at the 2008 Annual Meeting. Mr. Sight will promptly file an amendment to the Sight 13D,
reporting the contents of this Agreement, amending applicable items to conform to his obligations
hereunder and appending this Agreement as an exhibit thereto.

     (b) Mr. Sight shall vote, and shall use his commercially reasonable efforts to cause his
Affiliates and Associates (as herein defined) to vote, all Voting Securities (as herein defined)
which they are entitled to vote at the 2008 Annual Meeting in favor of the election of each of the
Nominees (as herein defined) to the Board.

     2. Board Composition; Recommendation.

     (a) The Company agrees that there shall be six (6) nominees to the Board for election at the
2008 Annual Meeting with terms to expire at the Company’s 2009 annual meeting of stockholders.
Such nominees shall be Larry Feldman, Bruce E. Moore, Lawrence S. Kaplan and Paul H. McDowell, all
of whom currently serve on the Board (the “Continuing Nominees”), Wendy Luscombe, who was
appointed to fill a vacancy on the Board with effect from May 12, 2008 (the “Appointed
Nominee”), and James W.

 

 

Sight (the “New Nominee” and together with the Continuing Nominees and the Appointed
Nominee, the “Nominees”). The Board shall recommend that the stockholders of the Company
vote to elect the Nominees as directors of the Company.

     (b) The Company agrees that if the 2008 Annual Meeting is not held before June 1, 2008, not
later than that date, the Board shall increase the size of the Board by one and shall appoint Mr.
Sight to fill the vacancy thereby created.

     3. Standstill.

     (a) Subject to Section 3(c), Mr. Sight agrees that that during the period commencing on the
date hereof and ending on the date that is 150 days before the first anniversary of the date of the
proxy statement mailed to the Company’s stockholders in connection with the 2008 Annual Meeting,
without the prior written consent of the Board specifically expressed in a written resolution
adopted by a majority vote of the entire Board, he will not, and will cause each of his agents and
other Persons, including any Affiliates or Associates, acting on his behalf, not to:

     (i) engage, or in any way participate, directly or indirectly, in any “solicitation”
(as such term is defined in Rule 14a-1(l) promulgated by the SEC under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of proxies or consents
(whether or not relating to the election or removal of directors) from any stockholders of
the Company; advise, encourage or influence any Person (as herein defined) with respect to
the voting of any Voting Securities with respect to the 2008 Annual Meeting or any other
meeting of the Company’s stockholders that occurs prior to the termination of this Agreement
in a manner that is inconsistent with the terms of this Agreement; nominate or propose any
person for election to the Board; or initiate, propose or otherwise “solicit” (as such term
is defined in Rule 14a-1(l) promulgated by the SEC under the Exchange Act) stockholders of
the Company for the approval of any stockholder proposal whether made pursuant to Rule 14a-8
or Rule 14a-4 or exempt solicitations pursuant to Rule 14a-2(b)(1) or Rule 14a-2(b)(2) under
the Exchange Act or otherwise induce or encourage any other Person to initiate any such
stockholder proposal; or otherwise communicate with the Company’s stockholders or others
pursuant to Rule 14a-1(1)(2)(iv) under the Exchange Act;

     (ii) seek or propose, or make any statement with respect to, any merger, consolidation,
business combination, tender or exchange offer, sale or purchase of assets, sale or purchase
of securities (except that Mr. Sight may seek or propose a sale or purchase of the shares of
the Company beneficially owned by Mr. Sight as of the date hereof), dissolution,
liquidation, restructuring, recapitalization or similar transactions of or involving the
Company or any of its Affiliates;

     (iii) form, join or in any way participate in any “group” (within the meaning of
Section 13(d)(3) of the Exchange Act) with respect to any Voting Securities, other than a
“group” that includes all or some lesser number of the Persons identified as “Reporting
Persons” in the Sight 13D, but does not include any other members who are not currently
identified as Reporting Persons;

     (iv) act, alone or in concert with others, to control or seek to control, or influence
or seek to influence, the management, Board or policies of the Company;

- 2 -

 

     (v) other than as previously disclosed in the Sight 13D, deposit any Voting Securities
in any voting trust or subject any Voting Securities to any arrangement or agreement with
respect to the voting of any Voting Securities, except as expressly set forth in this
Agreement;

     (vi) knowingly enter into any arrangements, understanding or agreements (whether
written or oral) with, or advise, finance, assist or encourage, any other Person in
connection with any of the foregoing, or make any investment in or enter into any
arrangement with, any other Person that engages, or offers or proposes to engage, in any of
the foregoing;

     (vii) discuss or communicate any confidential information with respect to the Company
and its business, including but not limited to information related to the evaluation of any
strategic alternatives under consideration by the Board; and

     (viii) take or cause or induce others to take any action inconsistent with any of the
foregoing.

     (b) Mr. Sight hereby waives any right (whether by statute or agreement) to inspect records and
lists of Company stockholders (including any list of non-objecting beneficial owners) in connection
with the 2008 Annual Meeting.

     (c) Nothing in Section 3(a) shall prevent Mr. Sight from soliciting proxies or taking any
other action with respect to the Company’s 2009 annual meeting of stockholders. Nothing in clauses
(ii), (iv) or (vii) of Section 3(a) shall prevent Mr. Sight from acting in his capacity as a
director and consistent with his fiduciary duties in that capacity, provided Mr. Sight does not,
directly or indirectly, cause or permit any public dissemination or disclosure of any such activity
apart from disclosure made by the Company pursuant to authorization of the Board.

     4. Mutual Release.

     (a) Mr. Sight, for himself and his assigns, agents, and successors, past and present (each
individually, a “Sight Releasing Party”), does hereby expressly, absolutely and forever
release and discharge the Company and each officer, director, stockholder, agent, affiliate,
employee, attorney, assigns, predecessor, and successor, past and present, of the Company (each
individually, a “Company Released Party”) from, and forever fully releases and discharges
each Company Released Party of, any and all rights, claims, warranties, demands, debts,
obligations, liabilities, costs, attorneys’ fees, expenses, suits, losses, and causes of action
(“Claims”) of any kind or nature whatsoever (including those arising under contract,
statute or common law), whether known or unknown, contingent or absolute, suspected or unsuspected,
arising in respect of or in connection with the Proxy Solicitation, which any Releasing Party ever
had or owned arising at any time prior to the date of this Agreement (including the future effects
of such occurrences, conditions, acts or omissions); provided, however, that the
foregoing release does not apply to (i) any Claim relating to the performance of obligations under
this Agreement or for breach of or to enforce this Agreement or (ii) any Claims that cannot be
waived by law (with clauses (i) and (ii) together, the “Sight Excluded Claims”). The
Claims released pursuant to this Section 4(a) are referred to herein as “Sight Claims.”
Mr. Sight, on behalf of himself and the Sight Releasing Parties, hereby irrevocably covenant to
refrain from asserting any claim or demand, or commencing, instituting or causing to be commenced,
any proceeding of any kind against any Company Released Party based upon any Sight Claim.

     (b) The Company, for itself and for its officers, directors, assigns, agents, and successors,
past and present (each individually, a “Company Releasing Party”), does hereby expressly,
absolutely and

- 3 -

 

forever release and discharge Mr. Sight and each of his agents, affiliates, attorneys, assigns,
predecessors, and successors, past and present (each individually, an “Sight Released
Party”), from, and forever fully releases and discharges each Released Party of, any and all
Claims of any kind or nature whatsoever (including those arising under contract, statute or common
law), whether known or unknown, contingent or absolute, suspected or unsuspected, arising in
respect of or in connection with the Proxy Solicitation, any Schedule 13D or proxy filings made
prior to the date hereof or in respect of or in connection with the nomination and election of
directors at the 2008 Annual Meeting or the other proposals contained in the Notice, which any
Company Releasing Party ever had or owned arising at any time prior to the date of this Agreement
(including the future effects of such occurrences, conditions, acts or omissions);
provided, however, that the foregoing release does not apply to (i) any Claim
relating to the performance of obligations under this Agreement or for breach of or to enforce this
Agreement or (ii) any Claims that cannot be waived by law (with clauses (i) and (ii) together, the
“Company Excluded Claims”). The Claims released pursuant to this Section 4(b) are referred
to herein as “Company Claims.” The Company, on behalf of itself and the Company Releasing
Parties, hereby irrevocably covenants to refrain from asserting any claim or demand, or commencing,
instituting or causing to be commenced, any proceeding of any kind against any Released Party or
Mr. Sight based upon any Company Claim.

     (c) The parties hereto hereby acknowledge and agree that the Sight Released Parties and the
Company Released Parties are intended third party beneficiaries of the provisions of this Section 4
and may take any and all action to enforce the obligations and agreements of the releasing parties
set forth herein.

     5. Representations and Warranties of James W. Sight. Mr. Sight represents and
warrants as follows:

     (a) He has the full power and authority to execute, deliver and carry out the terms and
provisions of this Agreement and to consummate the transactions contemplated hereby.

     (b) This Agreement has been executed and delivered by him, and constitutes his valid and
binding obligation and agreement, and is fully enforceable against him in accordance with its
terms.

     (c) He beneficially owns, directly or indirectly, as of the date hereof, the number of shares
of common stock of the Company set forth in Schedule A attached hereto, which number
constitutes all of the Voting Securities of the Company beneficially owned by him.

     (d) The execution, delivery and performance of this Agreement by him does not and will not
violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to
him, or (ii) result in any breach or violation of or constitute a default (or an event which with
notice or lapse of time or both could become a default) under or pursuant to, or result in the loss
of a material benefit under, or give any right of termination, amendment, acceleration or
cancellation of, any agreement, contract, commitment, understanding or arrangement to which he is a
party or by which he is bound.

     (e) No consent, approval, authorization, license or clearance of, or filing or registration
with, or notification to, any court, legislative, executive or regulatory authority or agency is
required in order to permit him to perform his obligations under this Agreement, except as have
been obtained or given.

     6. Representations and Warranties of the Company. The Company hereby represents and
warrants as follows:

     (a) The Company has the corporate power and authority to execute, deliver and carry out the
terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

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     (b) This Agreement has been duly and validly authorized, executed and delivered by the
Company, and constitutes a valid and binding obligation and agreement of the Company, and is
enforceable against the Company in accordance with its terms.

     (c) The execution, delivery and performance of this Agreement by the Company does not and will
not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to
it, or (ii) result in any breach or violation of or constitute a default (or an event which with
notice or lapse of time or both could become a default) under or pursuant to, or result in the loss
of a material benefit under, or give any right of termination, amendment, acceleration or
cancellation of, any organizational document, agreement, contract, commitment, understanding or
arrangement to which the Company is a party or by which it is bound.

     (d) No consent, approval, authorization, license or clearance of, or filing or registration
with, or notification to, any court, legislative, executive or regulatory authority or agency is
required in order to permit the Company to perform its obligations under this Agreement, except as
have been obtained or given.

     7. Termination.

     (a) Unless terminated earlier pursuant to Section 7(b), this Agreement shall remain in full
force and effect and shall be fully binding on the parties hereto in accordance with the provisions
hereof until the first anniversary of the date of this Agreement.

     (b) The provisions of this Agreement may be terminated by the non-breaching party in the event
of a final adjudication of a material breach by any party of any of the terms of this Agreement.
Any termination of this Agreement as provided herein will be without prejudice to the rights of any
party arising out of the breach by any other party of any provision of this Agreement.

     8. Specific Performance. Mr. Sight, on the one hand, and the Company, on the other
hand, acknowledges and agrees that irreparable injury to the other party hereto would occur in the
event any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached and that such injury would not be adequately compensable in
damages. It is accordingly agreed that Mr. Sight, on the one hand, and the Company, on the other
hand (the “Moving Party”), each shall be entitled to specific enforcement of, and
injunctive relief to prevent any violation of, the terms hereof and the other parties hereto will
not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on
the grounds that any other remedy or relief is available at law or in equity. The remedy set forth
in this Section 8 shall not be deemed to be the exclusive remedy for a breach of this Agreement,
but shall be in addition to all other remedies available at law or in equity. The Company and Mr.
Sight hereby waive any requirements relating to the securing or posting of any bond in connection
with any application for injunctive or other equitable relief hereunder.

     9. Press Release.

     (a) As soon as reasonably practicable following the execution and delivery of this Agreement,
the Company shall issue the press release attached hereto as Exhibit A (the “Press
Release”).

     (b) None of the parties hereto will, for a period of 12 months from the date of this
Agreement, make any public statements (including in any filing with the SEC or any other regulatory
or governmental agency, including any stock exchange) that are inconsistent with, or otherwise
contrary to, the statements in the Press Release issued pursuant to this Section 9, unless
otherwise required by law.

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     (c) Nothing shall preclude or prevent any of the parties hereto from making public statements
that (A) are neither contrary to nor inconsistent with the statements in the Press Release and (B)
do not violate Sections 3 and 9 hereof, in each case unless otherwise required by law.

     10. No Waiver. Any right or obligation under this Agreement may be waived if, and
only if, such waiver is in writing and signed by the party against whom the waiver is to be
effective. Any waiver by either any party of a breach of any provision of this Agreement shall not
operate as or be construed to be a waiver of any other breach of such provision or of any breach of
any other provision of this Agreement. The failure of any party to insist upon strict adherence to
any term of this Agreement on one or more occasions shall not be considered a waiver or deprive
that party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

     11. Definitions. As used in this Agreement:

“Affiliates” and “Associates” shall have the meanings set forth in Rule
12b-2 under the Exchange Act and shall include Persons who become Affiliates or Associates
of any Person subsequent to the date hereof.

“Person” shall mean any individual, partnership, corporation, group, syndicate,
trust, government or agency, or any other organization, entity or enterprise.

“Voting Securities” shall mean any securities of the Company entitled to vote
in the election of directors of the Company, or securities convertible into or exercisable
or exchangeable for such securities, whether or not subject to the passage of time or other
contingencies.

     12. Successors and Assigns. Neither this Agreement nor any right, interest or
obligation hereunder may be assigned by any party hereto without the prior written consent of the
other parties hereto and any attempt to do so will be void. Subject to the preceding sentence,
this Agreement is binding upon, inures to the benefit of and is enforceable by the parties hereto
and their respective successors and assigns.

     13. Entire Agreement; Amendments. This Agreement contains the entire understanding of
the parties hereto with respect to its subject matter. There are no restrictions, agreements,
promises, representations, warranties, covenants or undertakings other than those expressly set
forth herein. This Agreement may be amended or modified only by a written instrument duly executed
by the parties hereto or their respective successors or assigns.

     14. Interpretation and Headings. The definitions in this Agreement will apply equally
to both the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun will include the corresponding masculine, feminine and neuter forms. The word “include”
will be deemed to be followed by the phrase “without limitation.” All references herein to
Sections, Exhibits and Schedules will be deemed to be references to Sections of, and Exhibits and
Schedules to, this Agreement unless the context will otherwise require. The section headings
contained in this Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement. Unless the context will otherwise require or
provide, any reference to any agreement or other instrument or statute or regulation is to such
agreement, instrument, statute or regulation as amended and supplemented from time to time (and, in
the case of a statute or regulation, to any successor provision).

     15. Notices. All notices, demands and other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to
have been given (a) when delivered by hand (with written confirmation of receipt), (b) upon sending
if sent by

- 6 -

 

facsimile, with electronic confirmation of sending; provided, however, that a copy
is sent on the same day by registered mail, return receipt requested, in each case to the
appropriate mailing addresses set forth below (or to such other mailing addresses as a party may
designate by notice to the other parties in accordance with this provision), (c) upon receipt,
after being sent by a nationally recognized overnight carrier to the addresses set forth below (or
to such other mailing addresses as a party may designate by notice to the other parties in
accordance with this Section 15) or (d) when actually delivered if sent by any other method that
results in delivery (with written confirmation of receipt):

If to the Company:

Feldman Mall Properties, Inc.

1010 Northern Boulevard, Suite 314

Great Neck, New York 11021

Attn: Thomas E. Wirth, President and Chief Financial Officer

with a copy to:

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Attn: Jay Bernstein, Esq.

Telecopy: (212) 878-8375

Email: jay.bernstein@cliffordchance.com

If to James W. Sight:

James W. Sight

8500 College Blvd.,

Overland Park, Kansas 66210

with a copy to:

Shughart Thompson Kilroy, P.C.

Twelve Wyandotte Plaza

120 W. 12th Street

Kansas City, MO 64105

Attn: Jacob W. Bayer, Jr., Esq.

Telecopy: (816) 817-0103

Email: jbayer@stklaw.com

or to such other mailing address or facsimile address as the Person to whom notice is given may
have previously furnished to the others in writing in the manner set forth above.

     16. Governing Law; Jurisdiction. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York. Each party hereto agrees, on
behalf of himself or itself and his or its Affiliates and Associates that he or it controls, that
any actions, suits or proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby will be brought solely and exclusively in the courts of the State of New York
and/or the courts of the United States of America located in the State of New York (and the parties
agree not to commence any action, suit or proceeding relating thereto except in such courts), and
further agrees that service of any process,

- 7 -

 

summons, notice or document by U.S. registered mail to the respective addresses set forth in
Section 15 will be effective service of process for any such action, suit or proceeding brought
against any party in any such court. Each party, on behalf of himself or itself and his or its
Affiliates and Associates that he or it controls, irrevocably and unconditionally waives trial by
jury and any objection to the laying of venue of any action, suit or proceeding arising out of this
Agreement or the transactions contemplated hereby, in the courts of the State of New York or the
United States of America located in the State of New York, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in any inconvenient forum. Any
judgment rendered by a New York court may be enforced in any other jurisdiction in the United
States. Nothing in this Section 16 shall prevent any of the parties hereto from enforcing his or
its rights under this Agreement or shall impose any limitation on any of the parties or their
respective past, present or future general partners, directors, officers, or employees, as
applicable, in defending any claim, action, cause of action, suit, administrative action or
proceeding of any kind, including, without limitation, any federal, state or other governmental
proceeding of any kind, against any of them. The rights and remedies provided in this Agreement
are cumulative and do not exclude any rights or remedies provided by law.

     17. Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original, but all of which together shall constitute one and the same Agreement.

     18. No Presumption Against Draftsperson. Each of the undersigned hereby acknowledges
that the undersigned fully negotiated the terms of this Agreement, that each such party had an
equal opportunity to influence the drafting of the language contained in this Agreement and that
there shall be no presumption against any such party on the ground that such party was responsible
for preparing this Agreement or any part hereof. All prior working drafts of this Agreement, and
any notes and communications prepared in connection therewith, shall be disregarded for purposes of
interpreting the meaning of any provision contained herein.

     19. Survival. Except as otherwise provided herein, all representations, warranties and
agreements made by the parties in this Agreement or pursuant hereto shall survive the date hereof.
Except as expressly set forth in this Agreement, no party has made any representation, warranty,
covenant or agreement.

     20. Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and
declared to be the intention of the parties that the parties would have executed the remaining
terms, provisions, covenants and restrictions without including any of such which may be hereafter
declared invalid, void or unenforceable. In addition, the parties agree to use all commercially
reasonable efforts to agree upon and substitute a valid and enforceable term, provision, covenant
or restriction for any of such that is held invalid, void or enforceable by a court of competent
jurisdiction.

     21. Litigation Expenses. In the event of any litigation among any of the parties
hereto concerning this Agreement or the transactions contemplated hereby, the prevailing party in
such litigation shall be entitled to reimbursement from the party or parties opposing such
prevailing party of all reasonable attorneys’ fees and costs incurred in connection therewith. If
more than one party is required to provide reimbursements, the reimbursement obligation of such
parties shall be joint and several.

- 8 -

 

     22. Third Party Beneficiaries. Except for the provisions of Section 4 which are
intended for the benefit of, and to be enforceable by, the Persons described therein, nothing
contained in this Agreement shall create any rights in, or be deemed to have been executed for the
benefit of, any Person or entity that is not a party hereto or a successor or permitted assign of
such a party.

     23. Further Actions. Upon and subject to the terms of this Agreement, each of the
parties hereto agrees to use his or its commercially reasonable efforts to cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with the other party in doing,
all things necessary, proper or advisable to consummate or make effective, in the most expeditious
manner practicable, the matters contemplated by this Agreement.

     24. Change in Control. Except as contemplated herein, no change in the control,
ownership, operations or assets of the Company or any of its Affiliates shall have any effect
whatsoever on the obligations of the parties to this Agreement.

     25. Facsimile/PDF Signatures. This Agreement may be executed and delivered by
facsimile or by email in portable document format (pdf or similar format) and upon delivery of the
signature by such method will be deemed to have the same effect as if the original signature had
been delivered to the other parties.

     26. No Admission. Nothing contained herein shall constitute an admission by any party
hereto of liability or wrongdoing.

[Signature Page Follows]

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     IN WITNESS WHEREOF, and intending to be legally bound hereby, each of the undersigned parties has
executed or caused this Agreement to be executed on the date first above written.

	 	 	 	 	 
	 	FELDMAN MALL PROPERTIES, INC.

 	 
	 	By:  	/s/ Thomas Wirth
 	 
	 	 	Name:  	Thomas Wirth 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 
	 	JAMES W. SIGHT

 	 
	 	By:  	/s/ James W. Sight
 	 
	 	 	James W. Sight 	 
	 	 	 	 

 

 

	 	 	 	 	 

Schedule A

     James W. Sight beneficially owns 880,500 shares of common stock of the Company.

Sch-1

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