Document:

Prepared and filed by St Ives Burrups

EXHIBIT
    10.2

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT dated as of December 13, 2004, by and between Feldman Mall Properties, Inc., with its principal place of business at 3225 North Central Avenue, Suite 1205, Phoenix, Arizona 85012  (the “Company”) and Larry Feldman, residing at the address set forth on the signature page hereof (the “Executive”).

     WHEREAS, the Company wishes to employ 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 continuing for a four-year period following such date, unless sooner terminated in accordance with the provisions of Section 4 or Section 5; with such employment to continue for successive one-year periods in accordance with the terms of this Agreement (subject to termination as aforesaid) unless either party notifies the other party of non-renewal in writing prior to six months before the expiration of the initial term and each annual renewal, as applicable (the period during which the Executive is employed hereunder being hereinafter
referred to as the “Term”).

		 
		
     2.     Duties.  During the Term, the Executive shall be employed by the Company as Chairman and Chief Executive Officer of the Company, and, as such, the Executive shall faithfully perform for the Company the duties of said offices 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 directors of the Company (the “Board”).   The Executive shall report only to the Board.  The Executive shall devote substantially all of his business time and effort to the performance of his duties hereunder; provided that in no event shall this sentence prohibit the Executive from performing personal
and charitable activities, and other business interests, and further provided that such other business interests do not violate Section 6 of this Agreement.

		 	
     3.1     Salary.  The Company shall pay the Executive during the Term a salary at a minimum rate of $250,000 per annum (the “Annual Salary”), in accordance with the customary payroll practices of the Company applicable to senior executives.  At least annually, the Board shall review the Executive’s Annual Salary and may provide for such increases therein as it may in its discretion deem appropriate. (Any such increased salary shall constitute the “Annual Salary” as of the time of the increase.)

		 	 
		 	
     3.2     Bonus.  During the Term, in addition to the Annual Salary, for each fiscal year of the Company ending during the Term, the Executive shall have the opportunity to receive an annual bonus pursuant to the Company’s bonus plans and arrangements as in effect from time to time of up to 300% of the Executive’s Annual Salary, but in no event less than 10% of the Executive’s Annual Salary, subject to attainment of performance goals determined prior to the beginning of such fiscal year by the Board (or as appropriate, a committee of the Board) and provided to the Executive in writing in a timely manner in accordance with the Company’s ordinary practices.  The forgoing shall not
limit the Executive’s eligibility to receive any other bonus under any other bonus plan, stock option or equity–based plan, or other policy or program of the Company.

		 	 
		 	
     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, retirement plans, fringe benefit programs and other benefits that may be available to other senior executives of the Company generally, on the same terms as such other executives, in each case to the extent that the Executive is eligible under the terms of such plans or programs, and coverage under the Company’s health insurance and hospitalization plans shall include the Executive’s spouse, minor children and adult children under age 25 who are full time undergraduate or graduate students, to the extent
elected by the Executive.  

		 	 
		 	
     3.4     Vacation.  The Executive shall be entitled to vacation of no less than 20 business days per year, to be credited in accordance with ordinary Company policies. 

		 	 
		 	
     3.5     Expenses – In General.  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 services under this Agreement in accordance with the Company’s policies regarding such reimbursements.

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     3.6     Automobile. During the Term, the Company shall provide the Executive with an automobile allowance of $500 per month.

		 	 
		 	
     3.7     Cellular Telephone. During the Term, the Company shall provide the Executive with the use of a cellular telephone, or, so long as such will not increase the Company’s expense, reimburse Executive for a cellular phone and phone plan obtained by the Executive.

		 
		
     4.     Termination upon Death or Disability.  If the Executive dies during the Term, the Term shall terminate as of the date of death, and the obligations of the Company to or with respect to the Executive shall terminate in their entirety upon such date except as otherwise provided under this Section 4.  If the Executive by virtue of ill health or other disability is unable to perform substantially and continuously the duties assigned to him for more than 180 consecutive or non-consecutive days out of any consecutive 12-month period, 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.  Upon termination
of employment due to death or disability, (i) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Annual Salary and other benefits earned and accrued under this Agreement prior to the date of termination (and reimbursement under this Agreement for expenses incurred prior to the date of termination); (ii) for a period of three years after termination of employment, the Executive (if applicable), and in the event of his death, his spouse and his dependents, shall receive such continuing coverage under the group health plans they would have received under this Agreement (but at such costs no higher than as in effect immediately preceding such termination) as would have applied in the absence of such
termination, provided that, the Company shall in no event be required to provide any benefits otherwise required by this clause (ii) after such time as the Executive becomes entitled to receive benefits of the same type from another employer or recipient of the Executive’s services; (iii) without duplication of any amounts due under clause (i), the Executive shall receive an amount equal to the annual bonus that, in the absence of such termination, would have been payable for the fiscal year in which termination occurs, payable at such time as would have applied in the absence of such termination, with such amount to be multiplied by a fraction (x) the numerator of which is the number of days in the fiscal year preceding the termination and (y) the denominator of which is 365; (iv)
all outstanding unvested equity-based awards (including, without limitation, stock options and restricted stock) held by the Executive shall fully vest and become immediately exercisable, as applicable, and subject to the terms of such awards; and (v) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder (but, for the avoidance of doubt, shall receive such disability and death benefits as may be provided under the Company’s plans and arrangements in accordance with their terms).

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     5.     Certain Terminations of Employment; Certain Benefits.

		 	 
		 	
     5.1     Termination by the Company for Cause; Termination by the Executive without Good Reason.

		 	 	 
		 	 	
          (a)     For purposes of this Agreement, “Cause” shall mean the Executive’s:

		 	 	 	 	 	 	 
		
 	
 	
 	
 	
 	
(i)	
conviction of (or pleading nolo contendere to) a felony (but in no event including a traffic or similar violation); or

		 	 	 	 	 	 	 
		
 	
 	
 	
 	
 	
(ii)	
engagement in the performance of his duties hereunder, in willful misconduct, willful or gross neglect, fraud, misappropriation or embezzlement;

provided that the Company shall not be permitted to terminate the Executive for Cause except on written notice given to the Executive at any time not more than 30 days following the occurrence of any of the events described in clause (i) or (ii) above (or, if later, the Company’s knowledge thereof).  No termination for Cause under clause (i) or (ii)  shall be effective unless the Board makes a determination that Cause exists after notice to the Executive, and the Executive has been provided with an opportunity (with counsel of his choice) to contest the determination at a meeting of the Board.

				
            (b)     The Company may terminate this Agreement and the Executive’s employment hereunder for Cause, and the Executive may terminate his employment on at least 30 days’ written notice given to the Company.  If the Company terminates the Executive for Cause, or the Executive terminates his employment and the termination by the Executive is not for Good Reason in accordance with Section 5.2, (i) the Executive shall receive Annual Salary and other benefits (including any bonus for a fiscal year completed before termination and awarded but not yet paid) earned and accrued under this Agreement prior to the termination of employment (and reimbursement under this
Agreement for expenses incurred prior to the termination of employment); and (ii) the Executive shall have no further rights to any other compensation or benefits under this Agreement on or after the termination of employment.

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     5.2     Termination by the Company without Cause; Termination by the Executive for Good Reason.

		 	 
		 	
          (a)     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 (including, without limitation, the direction, hiring or firing by the Board of personnel that report to Executive), duties and responsibilities, the assignment to the Executive of duties materially inconsistent with the Executive’s position or positions with the Company, or the Executive is required to report to any persons other than the Board, as described in Section 2;

		 	 	 	 	 	 
		
 	
 	
 	
 	
(ii)	
a reduction in Annual Salary of the Executive;

		 	 	 	 	 	 
		
 	
 	
 	
 	
(iii)	
the relocation of the Executive’s office to more than 25 miles from Long Island, or the Executive not being provided with an office, office equipment and access to secretarial assistance reasonably comparable to that provided to other similarly situated officers of the Company;

		 	 	 	 	 	 
		
 	
 	
 	
 	
(iv)	
the Company’s failure to pay the Executive any amounts otherwise due hereunder or under any plan, policy, program, agreement, arrangement or other commitment of the Company; or

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

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of termination on account thereof, specifying a termination date no later than 30 days from the date of such notice and describing the event or condition purportedly giving rise to the termination for Good Reason, is given by the Executive to the Board within 30 days after such event is alleged to have occurred; (ii) if there exists (without regard to this clause (ii)) an event or condition that constitutes Good Reason, the Company shall have ten days from the date notice of such a termination is given to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder; and (iii) Good
Reason shall not be deemed to exist at any time at which there exists an event or condition which could serve as the basis of a termination for Cause.  In no event shall the Company’s notice of non-renewal, as set forth in Section 1 of this Agreement, be deemed to be a termination without Cause or constitute Good Reason.

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          (b)     The Company may terminate the Executive’s employment and the Executive may terminate the Executive’s employment with the Company at any time for any reason or no reason.  If the Company terminates the Executive’s employment and the termination is not covered by Section 4 or 5.1, or the Executive terminates his employment for Good Reason:

			 	 	 	 	 
			
 	
 	
 	
(i)	
the Executive shall receive Annual Salary and other benefits (including any bonus for a fiscal year completed before termination) earned and accrued under this Agreement prior to the termination of employment (and reimbursement under this Agreement for expenses incurred prior to the termination of employment); 

			 	 	 	 	 
			
 	
 	
 	
(ii)	
the Executive shall receive a single-sum cash payment equal to 2.99 multiplied by the sum of (x) the Executive’s Annual Salary as in effect immediately before such termination, but in no event shall such salary be deemed to be less than $250,000, and (y) the Executive’s maximum potential bonus payable in accordance with the last sentence of Section 3.2 for the fiscal year in which such termination occurs, but in no event shall such bonus amount be deemed to be less than a $750,000 bonus), payable no later than ten days after such termination;

			 	 	 	 	 
			
 	
 	
 	
(iii)	
for a period of three years after termination of employment, such continuing coverage under the group health plans the Executive would have received under this Agreement as would have applied in the absence of such termination, provided that the Company shall in no event be required to provide any benefits otherwise required by this clause after such time as the Executive becomes entitled to receive benefits of the same type from another employer or recipient of the Executive’s services; and

			 	 	 	 	 
			
 	
 	
 	
(iv)	
all outstanding unvested equity-based awards (including without limitation  stock options and restricted stock) held by the Executive shall fully vest and shall become immediately exercisable, as applicable, in the case of options, shall continue to be exercisable for their full terms, and, in the case of interests granted in Feldman Equities Operating Partnership, LP, such units will become convertible into common stock of the Company, and all restrictions on such shares of the Company granted in connection with the initial public offering (“Lockups”) shall expire.

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     5.3     Change of Control.  Without duplication of the foregoing, upon a “Change of Control” (as defined below) while the Executive is employed, all outstanding unvested equity-based awards (including stock options and restricted stock) shall fully vest and shall become immediately exercisable, as applicable.  In addition, if, after a Change of Control, the Executive terminates his employment with the Company as of the three-month anniversary of the Change of Control, such termination shall be deemed a termination by the Executive for Good Reason covered by Section 5.2.  For purposes of this Agreement, “Change in Control” shall mean the happening of any of the
following:

		 	 	 	 	 
		
 	
 	
 	
(i)	
any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), but excluding the Company, any entity controlling, controlled by or under common control with the Company, any employee benefit plan of the Company or any such entity, and Executive and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Executive is a member) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of either (A) the combined voting power of the Company’s then outstanding
securities or (B) the then outstanding common stock of the Company (in either such case other than as a result of an acquisition of securities directly from the Company); provided, however, that, in no event shall a Change in Control be deemed to have occurred upon an initial public offering or a subsequent public offering of the common stock under the Securities Act of 1933, as amended; or

		 	 	 	 	 
		
 	
 	
 	
(ii)	
any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any); or

		 	 	 	 	 
		
 	
 	
 	
(iii)	
there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Company immediately prior to such sale or (B) the approval by stockholders of the Company of any plan or proposal for the liquidation or dissolution of the Company; or

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(iv)	
the members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any director whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the members of the Board then still in office who were members of the Board at the beginning of such 24-calendar-month period, shall be deemed to be an Incumbent Director.

			 
			
     5.4     Parachutes.  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 (the “Code”), 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 5.4 as if no excise taxes had been imposed with respect to Parachute Payments.  “Parachute Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. Except as may otherwise be agreed to by the Company and the Executive, the calculation under this Section 5.4 shall be as determined by the Company’s accountants.  If the Executive
desires to dispute the computation rendered by such accounting firm, the Executive and the Company will jointly appoint an alternative certified public accounting firm of national reputation to perform the applicable computations.  The calculation of such jointly appointed certified public accounting firm shall be binding.  The Executive and the Company shall provide the applicable accounting firm with all information the accounting firm reasonably deems necessary in computing the payments to be made available to the Executive.  The costs and expenses of all of the accounting firms retained to perform the computations described above shall be borne by the Company.  

		 
		
     6.     Covenants of the Executive.

		 	 
		 	
     6.1     Covenant Against Competition; Other Covenants.  The Executive acknowledges that (i) the principal business of the Company (which expressly includes for purposes of this Section 6 (and any related enforcement provisions hereof), its successors and assigns) is the acquiring, owning and redeveloping of enclosed shopping malls (such business herein being referred to as the “Business”); (ii) the Company is one of the limited number of persons who have developed such a business; (iii) the Company’s Business is, in part, national in scope; (iv) the Executive’s work for the Company has given and will continue to give him access to the confidential affairs
and proprietary information of the Company; (v) the covenants and agreements of the Executive contained in this Section 6 are essential to the business and goodwill of the Company; and (vi) the Company would not have entered into this Agreement but for the covenants and agreements set forth in this Section 6.  Accordingly, the Executive covenants and agrees that:

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          (a)     By and in consideration of the salary and benefits to be provided by the Company hereunder, and subject to Executive receiving all monies due to him under the severance arrangements set forth herein, and further in consideration of the Executive’s exposure to the proprietary information of the Company, the Executive covenants and agrees that, during the period commencing on the date hereof and ending one year following the date upon which the Executive shall cease to be an employee of the Company and its affiliates, he shall not in the United States, directly or indirectly, except with the prior approval of the Board, (i) engage in the Business (other than for
the Company or its affiliates), or (ii) render any services to any person, corporation, partnership or other entity (other than the Company or its affiliates) whose principal business is to engage in the Business, or (iii) become interested in any person, corporation, partnership or other entity (other than the Company or its affiliates) principally engaged in the Business, as a partner, shareholder, principal, agent, employee, consultant or in any other relationship or capacity; provided, however, that, notwithstanding the foregoing, the Executive may invest in securities of any entity, solely for investment purposes and without participating in the business thereof, if (A) such securities are traded on any national securities exchange or the National Association of
Securities Dealers, Inc. Automated Quotation System, and (B) the Executive is not a controlling person of, or a member of a group which controls, such entity.  Notwithstanding the foregoing, the restrictions in this Section 6(a) shall not apply upon and after (i) a termination covered by Section 5.2 or (ii) a termination by the Executive after a Change in Control.  In addition, the restrictions of this Section 6(a) shall not apply to any existing investments or other activities of the Executive which have been disclosed in writing to the Board prior to the date hereof.

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          (b)     During and after the period of the Executive’s employment with the Company and its affiliates, the Executive shall keep secret and retain in strictest confidence, except in connection with the business and affairs of the Company and its affiliates, all confidential matters relating to the Company’s Business and the business of any of its affiliates and to the Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or indirectly from the Company or any of its affiliates (the “Confidential Company Information”); and shall not disclose such Confidential Company Information to anyone outside of the Company except
with the Company’s express written consent and except for Confidential Company Information which is at the time of receipt or thereafter becomes publicly known through no wrongful act of the Executive or is received from a third party not under an obligation to keep such information confidential and without breach of this Agreement. 

		 	 	 
		 	 	
          (c)     During the period commencing on the date hereof and ending one year following the date upon which the Executive shall cease to be an employee of the Company and its affiliates, (i) the Executive shall not, without the Company’s prior written consent, directly or indirectly, knowingly (i) solicit or encourage to leave the employment or other service of the Company, or any of its affiliates, any employee or independent contractor thereof or (ii) hire (on behalf of the Executive or any other person or entity) any employee who has left the employment of the Company or any of its affiliates within the one-year period which follows the termination of such
employee’s employment with the Company and its affiliates, and (ii) the Executive will not, whether for his own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the Company’s or any of its affiliates’ relationship with, or endeavor to entice away from the Company or any of its affiliates, any person who during the Term is or was a customer or client of the Company or any of its affiliates. 

		 	 
		 	
     6.2     Rights and Remedies upon Breach.  The Executive acknowledges and agrees that any breach by him of any of the provisions of Section 6.1 (the “Restrictive Covenants”) 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 provisions of Section 6.1, the Company and its affiliates, 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), shall have the right and remedy to have the Restrictive Covenants specifically
enforced 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. 

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     7.     Other Provisions.

		 	 
		 	
     7.1     Severability.  The Executive acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects.  If it is determined that any of the provisions of this Agreement, including, without limitation, any of the Restrictive Covenants, 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 effect, without regard to the invalid portions.

		 	 
		 	
     7.2     Duration and Scope of Covenants.  If any court or other decision-maker of competent jurisdiction determines that any of the Executive’s covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.

		 	 
		 	
     7.3     Enforceability; Jurisdiction; Arbitration.  Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim arising under Section 6, to the extent necessary for the Company (or its affiliates, where applicable) to avail itself of the rights and remedies referred to in Section 6.2) that is not resolved by the Executive and the Company (or its affiliates, where applicable) shall be submitted to arbitration in New York, New York in accordance with New York law and the procedures of the American Arbitration Association.  The determination of the arbitrator(s) shall be conclusive and binding on the Company (or its affiliates,
where applicable) and the Executive and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction. 

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     7.4     Indemnification and Insurance. The Company agrees to indemnify (in addition to any other indemnification provided to the Executive under any separate agreement or the by-laws of the Company) the Executive to the fullest extent permitted by applicable law, as the same exists and may hereafter be amended, from and against any and all losses, damages, claims, liabilities and expenses asserted against, or incurred or suffered by, the Executive (including the costs and expenses of legal counsel retained by the Company (or if separate counsel is reasonably required by Executive, the reasonable costs and expenses of legal counsel retained by the Executive) to defend the Executive and judgments, fines
and amounts paid in settlement actually and reasonably incurred by or imposed on such indemnified party) with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative in which the Executive is made a party or threatened to be made a party, either with regard to his entering into this Agreement or in his capacity as an officer or director, or former officer or director, of the Company or any affiliate thereof for which he may serve in such capacity.  Such indemnification shall continue after the Executive is no longer employed by the Company and shall inure to the benefit of his heirs, executors, and administrators.  The Company also agrees to secure and maintain a minimum of $10,000,000 of officers and directors liability insurance and a minimum
of $10,000,000 of an errors and omissions policy providing coverage for the Executive, which coverage shall continue after termination of employment for a reasonable time (but in no event for a shorter time than is applicable to any other senior executive of the Company). 

		 	 
		 	
     7.5     Legal Fees. The Company shall pay directly or reimburse the Executive for all reasonable legal fees and expenses incurred by the Executive in connection with the review, negotiation and execution of this Agreement. The Company shall pay, at least monthly, all costs and expenses, including attorneys’ fees and disbursements, of the Company and the Executive in connection with any legal proceeding (including any arbitration), whether or not instituted by the Company or the Executive, relating to the interpretation or enforcement of any provision of this Agreement; provided that if the Executive institutes the proceeding and a court having jurisdiction over such contest determines that the
Executive’s claim in such contest is frivolous or maintained in bad faith, the Executive shall pay his own costs and expenses and promptly (and in no event more than 60 days after demand therefor by the Company) return to the Company any amounts previously paid by the Company under this Section 7.5.

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     7.6     Notices.  Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid.  Any such notice shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile transmission or, if mailed, five days after the date of deposit in the United States mails as follows:

	 	 	 	 	 	 
	 	 	 	 	(i)	 If to the Company, to:
	 	 	 	 	 	 
	 	 	 	 	 	Feldman Mall Properties, Inc.
3225
North Central Avenue, Suite 1205
Phoenix, Arizona 85012

Attention: Larry Feldman
	 	 	 	 	 	 
	 	 	 	 	 	with a copy to:
	 	 	 	 	 	 
	 	 	 	 	 	Clifford Chance US LLP
31 West 52nd Street
New York, New York  10019
Attention:  Jay L. Bernstein
	 	 	 	 	 	 
	 	 	 	 	(ii)	If to the Executive, to the
    address set forth on the signature page hereof.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

Any such person may by notice given in accordance with this Section 7.6 to the other parties hereto designate another address or person for receipt by such person of notices hereunder.

		
     7.7     Entire Agreement.  This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

		 
		
     7.8     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 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.

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

			 
			
     7.10     Assignment.      This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs (in the case of the Executive) and assigns.  No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or transferred, subject to Section 5.3, pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company; provided, however, that the assignee or transferee is the successor to all or substantially all of the assets of
the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law.  

			 
			
     7.11     Withholding.  The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.

			 
			
     7.12     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.

			 
			
     7.13     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.

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     7.14     Survival.  Anything contained in this Agreement to the contrary notwithstanding, the provisions of Sections 5, 6 and 7.4 and any other provisions of this Agreement expressly imposing obligations that survive termination of Executive’s employment hereunder, and the other provisions of this Section 7 to the extent necessary to effectuate the survival of such provisions, shall survive termination of this Agreement and any termination of the Executive’s employment hereunder.

			 
			
     7.15     Existing Agreements.  The Executive represents to the Company that he is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Agreement or limit his ability to fulfill his responsibilities hereunder, except that, as previously disclosed to the Board, the Executive may have certain non-solicitation and non-interference obligations to a former employer.

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

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

FELDMAN MALL PROPERTIES INC.

	 	 	 	 	 	By:	 	/s/ Larry Feldman
	 	 	 	 	 	 	 	 
	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	/s/ Larry Feldman
	 	 	 	 	 	 	 	     Larry FeldmanPrepared and filed by St Ives Burrups

Exhibit 10.13

ASH OWNERSHIP INTERESTS ASSIGNMENT AGREEMENT

     THIS ASH OWNERSHIP INTERESTS ASSIGNMENT AGREEMENT (this “Agreement”) is made and entered into as of August 13, 2004, by and among Ash Foothills Investors, LLC, an Arizona limited liability company (“AFI”), Bruce Ash (“Bruce”) and Paul Ash (“Paul”) and Feldman Equities of Arizona, L.L.C., an Arizona limited liability company (“FEA”; and together with its designees, “Assignee”).

RECITALS

     WHEREAS, AFI is the owner of a membership interest (“Membership Interest”) in Feldman Mall Investors LLC, an Arizona limited liability company (“FMI”), pursuant to the Operating Agreement for FMI, entered into on or about April 9, 2002, (as amended, the “Operating Agreement”);

     WHEREAS, Bruce is the owner of 245 shares of stock in Feldman Mall Partner Inc., an Arizona corporation (“Mall Partner”), and 245 shares of stock in Feldman Pads Partner, Inc., an Arizona corporation (“Pads Partner”), such shares are hereinafter described as the “Bruce Stock”;

     WHEREAS, Paul is the owner of 245 shares of stock in Mall Partner and 245 shares of stock in Pads Partner, such shares are hereinafter described as the “Paul Stock”;

     WHEREAS, FMI is the sole limited partner and Pads Partner is the sole general partner in Feldman Foothills Pads LP (“Pads LP”);

     WHEREAS, Pads LP is the sole limited partner and Mall Partner is the sole general partner in Feldman Foothills Mall LP (“Mall LP”);

     WHEREAS, Mall LP is the sole member of Foothills Mall LLC, a Delaware limited liability company doing business in the State of Arizona as Foothills Mall Tucson LLC (“Mall Owner”);

     WHEREAS, FEA and AFI are the only members of FMI and, upon consummation of the transaction contemplated by this Agreement, FMI will be wholly-owned by Assignee;

     WHEREAS, Assignee intends to acquire (“Feldman Stock Acquisition”) (a) the shares of stock owned by Lawrence Feldman in Mall Partner and/or Pads Partner, (b) Mall Partner and/or Pads Partner; and/or (c) all or substantially all of the assets of Mall Partner and/or Pads Partner, in each case by separate agreements so that, upon consummation of such acquisition and the transaction contemplated by this Agreement, Mall Partner and Pads Partner (or all or substantially all of their assets) will be wholly-owned by Assignee;

     WHEREAS, Mall Owner owns the parcel of real property known as Foothills Mall located in Pima County, Arizona as more fully described on Exhibit A attached to this Agreement and incorporated herein by this reference (the “Real Property”);

 

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     WHEREAS, Feldman Equities Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”), a member of FEA, Feldman Mall Properties, Inc., a Maryland corporation (the “REIT”) and/or their respective affiliates (collectively, the “Formation Parties”), are in the process of conducting a reorganization (such reorganization and all transactions related thereto, including the acquisition of the Feldman Stock Acquisition and the contribution by the Formation Parties to Assignee of certain of the proceeds of the IPO, the “Formation Transactions”);

     WHEREAS, contemporaneously with or on or about the completion of the Formation Transactions, the REIT will conduct an underwritten initial public offering of its shares of common stock pursuant to an effective registration statement filed with the Securities and Exchange Commission (such underwritten initial public offering, the “IPO”); and

     WHEREAS, subject to the completion of the Formation Transactions and the IPO, Assignee desires to acquire the Membership Interest, the Bruce Stock and the Paul Stock, and AFI, Paul and Bruce desire to assign, convey and transfer to Assignee the Membership Interest, the Bruce Stock and the Paul Stock (collectively, the “Ash Ownership Interests”), free and clear of all liens, security interests, prior assignments or conveyances, conditions, special assessments, and encumbrances whatsoever and all other defects or imperfections in title (collectively, “Encumbrances”), in accordance with the terms and subject to the conditions, and for the consideration, specified in this
Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement agree as follows:

	 
	
       1.     Contribution of Ash Ownership Interests; Effective Date.  Ash, Bruce and Paul (individually a “Transferor” and collectively the “Transferors”) agree to transfer, convey and assign to Assignee, and Assignee agrees to accept the contribution, transfer, conveyance and assignment of, the Ash Ownership Interests, pursuant to the terms and conditions set forth in this Agreement.  On the Closing Date (as hereinafter defined) and upon receipt by Transferors of the Aggregate Consideration Value as described in Section 2, the Transferors shall contribute, transfer, convey and assign to Assignee the Ash Ownership Interests, free and clear of all
Encumbrances.  The Transferors acknowledge that, following the Closing (hereinafter defined), the Transferors will have no further right, title or interest of any nature (including as a member, shareholder, officer, director, manager or otherwise) in or to any of Mall Owner, Mall LP, Mall Partner, Pads LP, Pads Partner, FMI, or FEA (collectively, the “Ownership Entities”), any assets of any of the Ownership Entities (including without limitation any reserve funds held by any lender for any of the Ownership Entities), or the Real Property.

		 
	
       2.     Consideration.  The aggregate consideration for which the Transferors agree to transfer, convey and assign the Ash Ownership Interests to Assignee is the total sum of Four Million Five Hundred Thousand Dollars ($4,500,000.00) (the “Aggregate Consideration Value”).  The Aggregate Consideration Value is allocable among the Transferors and each Transferor’s portion of the Ash Ownership Interests being transferred by such Transferor as set forth on Exhibit B to this Agreement.  On the Closing Date, the Aggregate Consideration Value shall be paid by Assignee by delivering an amount, in cash, by wire transfer of immediately available funds to an account to
be designated in writing by the Transferor’s Agent (as hereinafter defined) at least five (5) days prior to the Closing Date on behalf of each Transferor, equal to each Transferor’s pro rata share of the Aggregate Consideration Value set forth next to each such Transferor’s name on Exhibit B to this Agreement to the Transferors.  Notwithstanding the foregoing, FEA and AFI acknowledge that Additional Capital Contributions and/or Member Loans (as such terms are defined in the Operating Agreement) may be required under Section 2.2 of the Operating Agreement prior to the Closing; in such event, if AFI makes an Additional Capital Contribution or Member Loan, then

		 	 
	 
                 (i)     the Aggregate Consideration Value payable under this Agreement shall be increased by the sum of (x) the principal amount of such Additional Capital Contribution(s) and Member Loan(s) and (y) simple interest on the principal amount of such Additional Capital Contribution(s) and Member Loan(s) at a rate of fifteen percent (15%) per annum from the date contributed or advanced until the Closing; and

 

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                 (ii)     the amount payable to AFI as set forth on Exhibit B shall be increased by such amount and the respective percentages allocating the Aggregate Consideration Value shall be appropriately adjusted.

	 
		 
	
       3.     Term of Agreement. If the Closing does not occur by January 31, 2005, (the “Termination Date”), this Agreement shall be deemed terminated and shall be of no further force and effect and neither FEA nor any Transferor shall have any further obligations pursuant to this Agreement except as specifically set forth in this Agreement.

		 
	
       4.     Additional Covenants and Agreements from the Transferors.

	 
	 
            A.     Each of the Transferors hereby designates and appoints AFI as the transferors’ agent (the “Transferors’ Agent”) and designates AFI as his agent and attorney-in-fact to take all actions and execute all documentation on his or her behalf and in his or her name that it deems necessary or advisable to effect the transactions contemplated by this Agreement.

	 
	 
            B.     Each of the Transferors hereby acknowledges and agrees that none of Assignee, the REIT, the Operating Partnership nor any of their respective affiliates is responsible for the distribution or allocation of the Aggregate Consideration Value to the Transferors and that none of them shall have any obligation whatsoever to the Transferors once the Aggregate Consideration Value is delivered by the Operating Partnership to the Transferors’ Agent.

	 
	 
            C.     Each of the Transferors hereby acknowledges and agrees that Assignee may rely on all written directions and instructions of the Transferors’ Agent as if such directions and instructions were given directly by the individual Transferors.

	 
	
       5.     Acceptance Certificate. From the date hereof until Closing, Assignee shall have the right to determine in its good faith whether the Real Property is suitable and satisfactory Assignee’s intended use of the Real Property. Assignee shall notify the Transferors in writing, on or before the Closing, that Assignee intends to proceed with the acquisition of the Ash Ownership Interests (such writing referred to herein as the “Acceptance Certificate”).

		 
	
       6.     Survey and Title Matters.

	 
	 
            A.     Title Insurance.  Promptly after the date hereof, Assignee may order, at its option, at its sole cost and expense, current title insurance commitment for a policy (ALTA) of owner’s title insurance and a copy of all exceptions referred to therein (the “Title Commitment”) form a title insurance company selected by Assignee (“Title Company”).  The Title Commitment shall irrevocably obligate the Title Company to issue an ALTA Title Insurance Policy in the full amount of the Aggregate Consideration Value or such other amount as determined by Assignee (the “Title Policy”), which Title Policy shall insure Mall
Owner’s fee simple title to the Real Property.  Assignee will also order, at its sole cost and expense, customary UCC, judgment and bankruptcy searches on the Transferors, the Mall Owner, the Mall Partner, the Mall LP, the Pads Partner, the Pads LP, FMI and the Real Property (collectively, the “Searches”).

	 
	 
            B.     Survey.  Assignee may order, at its option, at its sole cost and expense, an ALTA survey of the Real Property (“Survey”).  The legal description of the Real Property set forth in the Survey shall be substituted for the description of the Real Property set forth herein and such substituted legal description shall be used in other documents, if applicable, to be delivered by the Transferors to Assignee or the Title Company at Closing.

 

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            C.     Title and Survey Objection.  Prior to Closing, Assignee shall provide the Transferors with notice of any matters set forth in the Title Commitment, Survey or the Searches which are unacceptable to Assignee.  Any matters set forth in the Title Commitment, Survey or the Searches to which Assignee does not object, or which have been waived or cured shall be referred to collectively herein as the “Permitted Exceptions.”  In the event any unacceptable exceptions are not removed from the Title Commitment before Closing, Assignee shall either (i) waive Assignee’s objection to said unacceptable exceptions and consider said unacceptable
exceptions Permitted Exceptions or (ii) terminate this Agreement. Notwithstanding anything to the contrary contained in this Section or any other provision in this Agreement, the Transferors shall be obligated to cure, satisfy or obtain affirmative title insurance (which affirmative title insurance shall be reasonably acceptable to Assignee) with regard to any and all Monetary Objections (as hereinafter defined) and any other encumbrance, exception or matter encumbering the Ash Ownership Interest and proximately caused by the voluntary action of the Transferors, and if not so addressed by the Transferors, Assignee may reasonably use the proceeds of the Aggregate Consideration Value at Closing for such purpose.  For purposes of this Agreement, the term “Monetary
Objection” shall mean (a) any mortgage, deed to secure debt, deed of trust, assignment of leases and rents, pledge agreement, security agreement, financing statement or similar security instrument encumbering all or any part of the Ash Ownership Interests or (b) any final unappealable judgment of record against the Transferors.  Notwithstanding any language herein to the contrary, Transferors shall have no obligation to remove or release any encumbrance or exception related to the Real Property.

		 
	
       7.     Closing Date and Closing Procedures and Requirements.

	 
	 
            A.     Closing Date.  The “Closing Date” or “Closing” of this Agreement and the completion of the acquisition of the Ash Ownership Interests by Assignee shall be on or before sixty (60) days after the closing of the IPO or such earlier date as Assignee may specify by notice to the Transferors not less than three business days in advance of the Closing.  Closing shall take place at the offices of the Title Company or at such other place as the parties hereto may agree upon and shall be coordinated and conducted with the Title Company.  However, Closing shall not occur unless each and every condition to (i) Assignee’s
obligations, more specifically set out and otherwise enumerated in Section 12 of this Agreement and (ii) the Transferors’ obligations, more specifically set out and otherwise enumerated in Section 13 of this Agreement, has been satisfied or waived.

	 
	 
            B.     Conveyance of Title and Delivery of Closing Documents.  On the Closing Date, (A) the Transferors shall have delivered (i) all documents and items required by this Agreement or reasonably requested by a party to facilitate the consummation of the transaction contemplated hereunder, and (ii) a non-foreign status affidavit pursuant to Section 1445 of the Code, in a form reasonably acceptable to Assignee, duly executed by the Transferors, and (B) the parties hereto shall have submitted to the Title Company any other documents reasonably required by the Title Company for Closing.  The Transferors must provide such undertakings as the Title
Company may require to issue the Title Policy to Assignee.

	 
	 
            C.     Payment of Aggregate Consideration Value at Closing and Interest Assignment.  On the Closing Date, Assignee shall transfer the Aggregate Consideration Value to the Transferors’ Agent pursuant to Section 2 of this Agreement.  Simultaneously with the delivery of the Aggregate Consideration Value, each Transferor will transfer, convey, assign and deliver to Assignee good and valid title in and to the Transferor’s portion of the Ash Ownership Interests held by such Transferor, in each case, free and clear of all Encumbrances, by executing and delivering to Assignee (i) in the case of AF1, a member interest transfer agreement substantially in the
form of Exhibit C attached to this Agreement and (ii) in the case of Bruce and Paul, a stock interest transfer agreement substantially in the form of Exhibit D attached to this Agreement, together with the originals of all stock certificates issued in respect of the Bruce Stock and Paul Stock, in each case endorsed in favor of Assignee in a manner reasonably acceptable to Assignee.

 

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            D.     Closing Costs.  The Transferors shall, at Closing, pay one-half of any reasonable and customary escrow fees.  FEA agrees to pay for the cost of all inspections, including environmental site assessments and the Survey, the cost of any title insurance coverage desired by FEA or endorsements to such title insurance, and one-half of any escrow fees.  Each party shall pay its own attorneys’ fees and costs.  All other costs incurred at Closing shall be borne by FEA.

	 
	 
            E.     Risk of Loss.  If all or any portion of the Real Property is taken, or becomes subject to a pending taking, by eminent domain, or is conveyed in lieu thereof, or if Mall Owner or any Transferor receives notice of any rezoning of the Real Property, Assignee shall have the right and option to terminate this Agreement by providing the Transferors with written notice at any time after its receipt of written notification from the Transferors of any such occurrence.  If Assignee elects not to terminate this Agreement, then, as of the Closing, the proceeds of such taking shall not be distributed by FMI and shall be retained in FMI until Closing or termination of this
Agreement so that Transferors will not share therein if the Closing occus.

	 
	
       8.     Representations and Warranties of the Transferors.  Each Transferor hereby makes the following representations and warranties (in each case on his or her own behalf and not on the part of or with respect to any other Transferor), each of which is material and being relied upon by Assignee, each and every one of which is true, correct, and complete as of the date of this Agreement (unless they expressly provide for a future date), and will be true, correct, and complete as of the Closing Date:

	 
	 
            A.     Organization.  AFI is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Arizona.

	 
	 
            B.     Authority.  Each Transferor has the right, power and authority to enter into and deliver this Agreement and to perform all of its obligations under this Agreement and to consummate the transactions contemplated by this Agreement.  The execution and delivery of this Agreement and the performance by each such Transferor of its respective obligations hereunder require no further action or approval of any other individuals or entities in order to constitute this Agreement as a binding and enforceable obligation of each such Transferor in accordance with its terms subject, as to enforcement, to the bankruptcy, reorganization, insolvency and other similar laws of general
applicability relating to or affecting creditors’ rights and to general principles of equity.  Without limitation of the foregoing, AFI has obtained any consents of members or other approvals, if any, required under the terms of the Operating Agreement.

	 
	            C.     Ownership.

	 
	  
                 (i)     Each Transferor owns its portion of the Ash Ownership Interests as stated in the Recitals, beneficially and of record, free and clear of any and all Encumbrances.  Except for this Agreement, such Transferor has not granted any options, warrants, or rights to subscribe to, securities, member interests, rights or obligations convertible into or exchangeable for or given any right to subscribe for or participate in the profits of all or any portion of its portion of the Ash Ownership Interests.  AFI has not previously assigned, transferred, conveyed, encumbered, or liened any portion of the Membership Interest.  At Closing, upon consummation of
the transactions contemplated hereby, Assignee will acquire the entire legal and beneficial interest in all of such Transferor’s portion of the Ash Ownership Interests, free and clear of any and all Encumbrances;

	 
	  
                 (ii)     the Transferors are the only owners of the Ash Ownership Interests;

 

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                 (iii)     no Transferor has granted any other person or entity an option to purchase or a right of first refusal upon the Ash Ownership Interests, or any portion thereof or any direct or indirect interest therein nor are there any agreements or understandings between any Transferor and any other person or entity with respect to the disposition of the Ash Ownership Interests or any portion thereof; and

	 
	  
                 (iv)     no Transferor has assigned, transferred, conveyed, mortgaged, deeded in trust, or encumbered any interest in the Ash Ownership Interests.

	 
	 
            D.     Noncontravention.  Neither the entry into nor the performance of, or compliance with, this Agreement by such Transferor has resulted, or will result, in any violation of, or default under, or result in the acceleration of, any obligation under any limited liability company agreement, partnership agreement, regulations, mortgage indenture, lien agreement, note, contract, permit, judgment, decree, order, restrictive covenant, statute, rule, or regulation applicable to such Transferor or the Ash Ownership Interests, except that FEA shall be solely responsible for determining compliance of this Agreement with and shall indemnify Transferors from any liability arising
from Closing of the transaction described herein under the provisions of the various loan documents evidencing and securing the existing loan from Archon Financial, L.P. in favor of Mall Owner in the original principal amount of $54,750,000, the existing loan from Massachusetts Mutual Life Insurance Company in favor of Mall LP in the original principal amount of $6,450,000, and under any other existing loan which FEA has allowed to encumber the Real Property (collectively, the “Existing Loans”).

	 
	 
            E.     Litigation.  To each Transferor’s knowledge, there is no action, suit, or proceeding, pending or threatened, against or affecting such Transferor or the Ash Ownership Interests in any court or before any arbitrator or before any federal, state, municipal, or other governmental department, commission, board, bureau, agency or instrumentality which (i) in any manner raises any question affecting the validity or enforceability of this Agreement; (ii) could materially and adversely affect the ability of such Transferor to perform its obligations hereunder, or under any document to be delivered pursuant hereto; or (iii) could create a lien on the
Ash Ownership Interests, any part thereof, or any interest therein.

	 
	 
            F.     No Consents.  Except as may otherwise be set forth in this Agreement, each consent, approval, authorization, order, license, certificate, permit, registration, designation, or filing by or with any governmental agency or body necessary for the execution, delivery, and performance of this Agreement or the transactions contemplated hereby by such Transferor has been obtained or will be obtained on or before the Closing Date.

	 
	 
            G.     Reliance.  In engaging in this transaction, none of the Transferors are relying upon any representations made to it by Assignee, or any of its partners, officers, employees, affiliates or agents that are not contained in this Agreement.

	 
	 
            H.     Tax Matters.  Each Transferor represents and warrants that it has obtained from its own counsel advice regarding the tax consequences of (i) the transfer of such Transferor’s portion of the Ash Ownership Interests to Assignee and the receipt of proceeds therefor and (ii) any other transaction contemplated by this Agreement.  Each Transferor further represents and warrants that it has not relied on Assignee or Assignee’s representatives or counsel for such tax advice.

	 
	 
            I.     Bankruptcy with Respect to Transferors.  No Act of Bankruptcy has occurred with respect to any Transferor.  As used herein, “Act of Bankruptcy” shall mean if any Transferor shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (ii) admit in writing its inability to pay its debts as they become due, (iii) make a general assignment for the benefit of its creditors, (iv) file a voluntary petition or commence a voluntary case or proceeding under the Federal Bankruptcy Code (as now or hereafter in
effect), (v) be adjudicated bankrupt or insolvent, (vi) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, receivership, dissolution, winding-up or composition or adjustment of debts, (vii) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case or proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), or (viii) take any entity action for the purpose of effecting any of the foregoing.

 

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            J.     Brokerage Commission.  No Transferor has engaged the services of, any real estate agent, broker, finder or any other person or entity for any brokerage or finder’s fee, commission or other amount with respect to the transactions described herein on account of any action by any Transferor.  Each Transferor hereby agrees to indemnify and hold Assignee and its employees, directors, partners, affiliates and agents harmless against any claims, liabilities, damages or expenses arising out of a breach of the foregoing.  This indemnification shall survive Closing or any termination of this Agreement.

	 
	 
            K.     Liabilities; Indebtedness.  None of the Transferors has incurred any indebtedness related to the Real Property or the Ash Ownership Interests, or any portion thereof, other than the Existing Loans.  None of the Transferors have entered into any agreements, contracts or other obligations of any nature on behalf of any of the Ownership Entities (all authority for such actions being vested in other owners).

	 
	 
            L.     Representations True and Correct.  In the event that changes occur as to any material information, documents or exhibits referred to in this Agreement, of which any Transferor has knowledge, such Transferor will immediately disclose the same to Assignee when first available to such Transferor; and, in the event of any such material change, Assignee may, at its election, terminate this Agreement.

	 
	
       9.     Representations and Warranties of FEA.  FEA hereby makes the following representations and warranties, each of which is material and being relied upon by each Transferor, are true, correct, and complete as of the date of this Agreement (unless they expressly provide for a future date) and will be true, correct, and complete as of the Closing Date:

	 
	 
            A.     Organization and Authority.  FEA is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Arizona, and has full limited liability company right, power, and authority to execute and deliver this Agreement and to perform all of its obligations under this Agreement and to consummate the transactions contemplated by this Agreement.  The execution and delivery of this Agreement and the performance by FEA of its obligations hereunder have been duly authorized by all requisite action of FEA and require no further action or approval of FEA’s members, directors, officers, managers or of any other individuals
or entities in order to constitute this Agreement as a binding and enforceable obligation of FEA in accordance with its terms subject, as to enforcement, to the bankruptcy, reorganization, insolvency and other similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.

	 
	 
            B.     Noncontravention.  Neither the entry into nor the performance of, or compliance with, this Agreement by FEA has resulted, or will result, in any violation of, or default under, or result in the acceleration of, any obligation under its operating agreement, or any material mortgage, indenture, lien agreement, note, contract, permit, judgment, decree, order, restrictive covenant, statute, rule, or regulation applicable to FEA.

 

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            C.     Litigation.  To FEA’s knowledge, there is no action, suit, or proceeding, pending or threatened, against or affecting FEA in any court or before any arbitrator or before any federal, state, municipal, or other governmental department, commission, board, bureau, agency or instrumentality which in any manner raises any question affecting the validity or enforceability of this Agreement or could materially and adversely affect the ability of FEA to perform its obligations under this Agreement, or under any document to be delivered pursuant to this Agreement.

	 
	 
            D.     Consents.  Except as may otherwise be set forth in this Agreement, each consent, approval, authorization, order, license, certificate, permit, registration, designation, or filing by or with any governmental agency or body necessary for the execution, delivery, and performance of this Agreement or the transactions contemplated hereby by FEA has been obtained or will be obtained on or before the Closing Date.

	 
	 
            E.     Brokerage Commission.  FEA has not engaged the services of any real estate agent, broker, finder or any other person or entity for any brokerage or finder’s fee, commission or other amount with respect to the transactions described herein on account of any action by FEA.  FEA hereby agrees to indemnify and hold each Transferor harmless against any claims, liabilities, damages or expenses arising out of a breach of the foregoing.  This indemnification shall survive Closing or any termination of this Agreement.

	 
	 
            F.     Reliance.  In engaging in this transaction, FEA is not relying upon any representations made to it by any Transferor, or any of Tranferors’ partners, officers, employees, affiliates or agents that are not contained in this Agreement.

	 
	 
            G.     Tax Matters.  FEA represents and warrants that it has obtained from its own counsel advice regarding the tax consequences of (i) the transfer of each Transferor’s portion of the Ash Ownership Interests to FEA and the payment therefor and (ii) any other transaction contemplated by this Agreement, FEA further represents and warrants that it has not relied on any Transferor or any Transferor’s representatives or counsel for such tax advice.

	 
	 
            H.     Bankruptcy with Respect to FEA.  No Act of Bankruptcy has occurred with respect to FEA.  As used herein, “Act of Bankruptcy” shall mean if FEA shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (ii) admit in writing its inability to pay its debts as they become due, (iii) make a general assignment for the benefit of its creditors, (iv) file a voluntary petition or commence a voluntary case or proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), (v) be adjudicated
bankrupt or insolvent, (vi) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, receivership, dissolution, winding-up or composition or adjustment of debts, (vii) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case or proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), or (viii) take any entity action for the purpose of effecting any of the foregoing.

	 
	 
            I.     Assignee, in its capacity as manager of FMI, is not aware of any pending tax audit of FMI or of any tax liability to the Transferors for the period of time prior to Closing which will exceed the amount of distributions or dividends previously paid and/or payable in the future to Transferors pursuant to FMI’s Operating Agreement and/or the stockholder’s or similar agreement for Mall Partner and/or Pads Partner.

	 
	 
            J.     Representations True and Correct.  In the event that changes occur as to any material information, documents or exhibits referred to in this Agreement, of which FEA has knowledge, FEA will immediately disclose the same to the Transferors when first available to FEA; and, in the event of any such material change, the Transferors may, at their election, terminate this Agreement if such change materially adversely affects Transferors.

 

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       10.     Covenants.

	 
	 
            A.     Tax Covenants.  Each party hereto (and if any party is not a natural person, then any beneficial owners of such party) shall provide the other parties with such cooperation and information with respect to taxes relating to the Ownership Entities or any of the Ash Ownership Interests or the Real Property as reasonably requested by the other parties and shall cooperate with the other parties with respect to their filing of tax returns. Assignee shall promptly notify the applicable Transferor in writing upon receipt by Assignee or any of its affiliates of notice of (i) any pending or threatened tax audits or assessments relating to any Transferor, the Ownership
Entities or any part of the Ash Ownership Interests or the Real Property and (ii) any pending or threatened federal, state, local or foreign tax audits or assessments of Assignee or any of its affiliates, in each case which may affect the liabilities for taxes of such Transferor with respect to any tax period ending on or before the Closing Date.  Each Transferor (or, if such Transferor is not a natural person, any beneficial owners of such Transferor) shall promptly notify Assignee in writing upon receipt by such Transferor or its beneficial owners, as applicable, of notice of any pending or threatened federal, state, local or foreign tax audits or assessments relating to any of the Ownership Entities or any part of the Ash Ownership Interests or the Real Property. Assignee and each
Transferor or its beneficial owners, as applicable, may participate at its own expense in the prosecution of any claim or audit with respect to taxes attributable to any taxable period ending on or before the Closing Date, provided, that such Transferor or its beneficial owners, as applicable, shall have the right to control the conduct of any such audit or proceeding or portion thereof for which such Transferor (or its beneficial owners) has acknowledged liability (except as a partner of Assignee) for the payment of any additional tax liability, and Assignee shall have the right to control any other audits and proceedings.  Notwithstanding the foregoing, neither Assignee nor any Transferor (or, if such Transferor is not a natural person, any beneficial owners of such Transferor) may
settle or otherwise resolve any such claim, suit to proceeding which could have an adverse tax effect on the other party or its owners without the consent of the other party, such consent not to be unreasonably withheld.  Each Transferor (or, if such Transferor is not a natural person, any beneficial owners of such Transferor) and Assignee shall retain all tax returns, schedules and work papers, and all material records and other documents relating thereto, until the expiration of the statute of limitations (and, to the extent notified by any party, any extensions thereof) of the taxable years to which such tax returns and other documents relate and until the final determination of any tax in respect of such years.

	 
	 
            B.     Conduct of Business.  Assignee and Transferor (or, if such Assignee or Transferor is not a natural person, any beneficial owner of such Assignee or Transferor) agrees and covenants that, up to the time of Closing, such Transferor and Assignee shall not take any action that is not consistent with the operation of the business relating to the Ash Ownership Interests, FMI or the Mall Owner in the usual, regular and ordinary manner consistent with prior practice.  Distributions by FMI shall be made prior to Closing without adjustment of the Aggregate Consideration Value to the extent that such distributions would have been made by FMI in the absence of this Agreement,
and in this regard Transferors shall receive at Closing their share of then-existing operating account balances (excluding any impound, reserve or other accounts held by any lender) maintained by FMI or Mall Owner less any reasonable and customary reserves retained by FMI or Mall Owner, provided, however, that if AFI has made any Additional Capital Contributions and/or Member Loans, the amount distributable under this Section 10(B) shall be reduced (but not below zero) by the amount of any increase in the Aggregate Consideration Value pursuant to Section 2(i) above.  Neither Assignee nor any beneficial owner or affiliate of Assignee shall take any action outside the ordinary course of business which will prevent or diminish the rights of any Transferor to receive
distributions pursuant to the terms of the FMI Operating Agreement.

 

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       11.     Waivers, Surrender or Assignment of Rights Under Ash Ownership Interests.  As of the Closing Date (and except for Transferors’ right under Section 10(B) of this Agreement to receive distributions at Closing), each Transferor surrenders, waives or to the extent assignable, assigns to Assignee all rights and benefits otherwise afforded to such Transferor under the Ash Ownership Interests (including the Operating Agreement) or the Real Property including, without limitation, any rights of appraisal, rights of first offer or first refusal, buy/sell agreements, and any right to consent to or approve of the sale or contribution of its interest (including its portion of the Ash
Ownership Interests) in any of the Ownership Entities or the Real Property to Assignee.

	 
	
       12.     Conditions Precedent to Assignee’s Obligations. Assignee’s obligation to perform any obligations provided for in this Agreement is conditioned upon the occurrence of the following conditions on or before the Closing Date:

	 
	 
            A.     Assignee shall have delivered the Acceptance Certificate to the Transferors.

	 
	 
            B.     The obligations of each Transferor contained in this Agreement to be performed by them shall have been duly performed by them on or before the Closing Date and the Transferors shall not have breached any of their representations, warranties, covenants or agreements contained herein.

	 
	 
            C.     Concurrently with the Closing, each Transferor shall have executed and delivered to Assignee the documents required to be delivered pursuant to this Agreement.

	 
	 
            D.     No order, statute, rule, regulation, executive order, injunction, stay, decree or restraining order shall have been enacted, entered, promulgated or enforced by any court of competent jurisdiction or Governmental Entity that prohibits the consummation of the transactions contemplated hereby, and no litigation or governmental proceeding seeking such an order shall be pending or threatened.

	 
	 
            E.     There shall not have occurred between the date hereof and the Closing Date any material adverse change in any of the assets, business, financial condition, results of operations or prospects of any of the Real Property or the Ownership Entities.

	 
	 
            F.     The Title Company shall be irrevocably committed to issuing the Title Policy upon Closing insuring ownership of the Real Property in the name of Mall Owner or its nominee or assignee in the amount equal to the Aggregate Consideration Value, or such other amount as determined by Assignee in accordance with Section 6 hereof, subject only to Permitted Exceptions.

	 
	 
            G.     The Real Property shall not have been materially affected by any legislative or regulatory change, or any fire, flood, accident or other adverse event that would prohibit Assignee from using any part of the Real Property for Assignee’s intended purpose.

	 
	 
            H.     There shall be no actions, suits or proceedings of any kind or nature whatsoever, legal or equitable, affecting the Ash Ownership Interests, any of the Ownership Entities, or any part of the Real Property or any portion or portions thereof in any material way, or relating to or arising out of the ownership of the Ownership Entities or the Real Property, in any court or before or by a federal, state, county, municipal department, commission, board, bureau, or agency or other governmental instrumentality.

 

10

	 
	 
            I.     The Formation Transactions and the IPO shall have been completed.

     Any or all of the foregoing conditions may be waived by FEA in its sole and absolute discretion.

	 
	
       13.     Conditions to the Transferor’s Obligations.  Each Transferor’s obligation to perform any obligations provided for in this Agreement is conditioned upon the occurrence of the following conditions on or before the Closing Date:

	 
	 
            A.     The representations, warranties and covenants of FEA contained in this Agreement shall be true and correct as of the Closing Date.

	 
	 
            B.     The obligations of FEA contained in this Agreement to be performed by it shall have been duly performed by it on or before the Closing Date and FEA shall not have breached any of its covenants or agreements contained herein.

	 
	 
            C.     No order, statute, rule, regulation, executive order, injunction, stay, decree or restraining order shall have been enacted, entered, promulgated or enforced by any court of competent jurisdiction or Governmental Entity that prohibits the consummation of the transactions contemplated hereby, and no litigations or governmental proceeding seeking such an order shall be pending or threatened.

     Any or all of the foregoing conditions may be waived by the Transferors in their sole and absolute discretion.

	 
	
       14.     Survival of Representations and Warranties; Remedy for Breach.

	 
	 
            A.     Subject to Section 15 hereof, all representations and warranties of the Transferors and FEA in this Agreement shall survive the Closing for a period of nine months after the Closing Date.

	 
	 
            B.     Notwithstanding anything to the contrary in this Agreement, except as otherwise provided in Section 16 hereof with respect to Assignee’s right to obtain an injunction, neither the Transferors nor FEA shall be liable under this Agreement for monetary damages (or otherwise) for breach of any of its representations, warranties, covenants and obligations or in any agreement or exhibit delivered by any of them pursuant thereto, other than pursuant to Section 15 of this Agreement.

	 
	
       15.     Indemnification.

	 
	 
            A.     Transferor’s Indemnity.  Each Transferor hereby jointly and severally agrees to indemnify and hold Assignee and its direct and indirect members, shareholders, partners, directors, officers, employees, trustees, affiliates and agents harmless of and from all liabilities, losses, damages, costs, and expenses (including reasonable attorneys’ fees) which they may suffer or incur by reason of any breach of such Transferor’s representations, warranties or obligations contained in this Agreement and any exhibit or attachment to this Agreement.

	 
	 
            B.     FEA’s Indemnity.  FEA hereby agrees to indemnify and hold the Transferors and their respective direct and indirect members, shareholders, partners, directors, officers, employees, trustees, affiliates and agents harmless of and from all liabilities, losses, damages, costs, and expenses (including reasonable attorneys’ fees) which they may suffer or incur by reason of any breach of FEA’s representations or warranties contained in this Agreement and any exhibit or attachment to this Agreement.

 

11

	 
	 
            C.     Limitation Period.  Notwithstanding the foregoing, any claim for indemnification under this Section 15 must be asserted in writing, stating the nature of such claim and the basis for indemnification therefore within one year after the Closing.  If so asserted in writing within one year after the Closing, such claims for indemnification shall survive until resolved by mutual agreement between the Transferors and FEA or by judicial determination.

	 
	
       16.     Injunctions.  Each party hereto agrees that irreparable damage would occur to the other party in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that either non-breaching party shall be entitled to an injunction or injunctions to prevent breaches of this Agreement by such other breaching party and to enforce specifically the terms and provisions hereof in any federal or state court (as to which the parties agree to submit to jurisdiction for the purposes of such action), this being in addition to any other remedy to which the non-breaching party is entitled under this
Agreement or otherwise at law or in equity.

	 
	
       17.     Successors and Assigns.  The rights and obligations created by this Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, executors, receivers, trustees, successors and permitted assigns.

	 
	
       18.     Governing Law.  This Agreement and all transactions contemplated hereby shall be governed by, construed and enforced in accordance with the laws of the State of Arizona.

	 
	
       19.     Third Party Beneficiary.  Except as specifically set forth in this Agreement, no provision of this Agreement is intended, nor shall it be interpreted, to provide or create any third party beneficiary rights or other rights of any kind in any customer, affiliate, stockholder, partner, member, director, officer, or employee of any party to this Agreement or any other person or entity.

	 
	
       20.     Severability.  If any provision of this Agreement, or the application thereof, is for any reason held to any extent to be invalid or unenforceable, the remainder of this Agreement and application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto.  The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business, and other purposes of the void or unenforceable provision and to execute any amendment, consent, or agreement deemed necessary or desirable by Assignee to effect such
replacement.

	 
	
       21.     Notices.  All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the parties at the following addresses or facsimile numbers:

	 
	If to the Transferors:	c/o Mr. Bruce Ash
2026 E. Prince Road
Tucson, AZ  85719
Facsimile:  ________________
	 	with a copy to:

Ted H. Hinderaker, Esq.
2401 East Speedway
Tucson, Arizona  85719-4735
Facsimile:  520-881-6775

 

12

	If to Assignee:	Feldman Equities of Arizona, L.L.C.
3225 North Central Avenue, Suite 1205
Phoenix, Arizona  85012
Attention:  Lawrence Feldman
Facsimile:  602-277-7774
	 	 
	 	with a copy to:

Jeffrey Erhart, Esq.
Van Wagner, Erhart & Hubbard, LLP
649 North Third Avenue
Phoenix, Arizona  85012
Facsimile:  602-254-5942

     All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section, be deemed given upon delivery or refusal, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section, be deemed given upon receipt, and (iii) if delivered by mail in the manner described above to the address as provided in this Section, be deemed given upon receipt or refusal (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section).  Any party from time to time may change its address, facsimile number or other
information for the purpose of notices to that party by giving notice specifying such change to the other parties hereto in accordance with this Section.

	 
	
       22.     Weekends, Holidays, Etc.  If the time period by which any right, option or election provided for under this Agreement must be exercised, or by which any act required hereunder must be performed, or by which Closing must be held, expires on a day which is a Saturday, Sunday, or official federal or a state holiday for the States of Arizona or New York, then such time period shall be automatically extended through the close of business on the next business day.

	 
	
       23.     Further Assurances.  From time to time, at either party’s request, whether on or after Closing, and without further consideration, the other party shall execute and deliver any further instruments of conveyance and take such other actions as the requesting party may reasonably require to complete more effectively the transfer of the Ash Ownership Interests to Assignee.

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

	 
	
       25.     Entire Agreement and Amendments.  This Agreement, together with all exhibits attached hereto or referred to herein, contain all representations and the entire understanding between the parties hereto with respect to the subject matter hereof.  Any prior correspondence, memoranda or agreements are replaced in total by this Agreement and exhibits hereto.  This Agreement may only be modified or amended upon the written consent of each party hereto.

	 
	
       26.     Reimbursement
  of Transferors’ Attorneys’ Fees.  If the Closing under this Agreement does not occur for any reason other than a breach by Transferors hereunder, FEA shall reimburse Transferors within thirty (30) days following demand for all reasonable attorneys’ fees and costs incurred by the Transferors in connection with this Agreement.  Any demand for payment hereunder shall be accompanied by an invoice for services listing each item of service provided and the charge for that item of service.  In no event shall FEA be liable for more than $25,000 under this Section.  The payment obligation under this Section shall not apply to or limit any attorneys fees for which FEA is
already obligated to make payment under another provision of this Agreement; it not being the parties’ intent that Transferors receive reimbursement of double attorneys’ fees.

 

13

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

	 
	TRANSFERORS:
Ash Foothills Investors, LLC,
an Arizona limited liability company

By: /s/ Bruce Ash          
          
          
          

       Name:Bruce Ash

       Title:

By: /s/ Paul Ash          
          
          
          

       Name:Paul Ash

       Title:	 
	 	 
	FEA:

      Feldman Equities of Arizona, L.L.C.,

  an Arizona limited liability company

  By: /s/ Lawrence Feldman          
          
          

           Lawrence
    Feldman, Manager
	 

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EXHIBIT A

PARCEL 1

Description of Foothills Mall (LESS Pads 1, 4, 7, 8 and 9).

A part of the East Half (E 1/2) of Section 33, Township 12 South, Range 13 East, Gila and Salt River Meridian, Pima County, Arizona, including part platted as Lot 2, FEDERATED STORES, as recorded in Book 28 of Maps and Plats at Page 46, described as follows:

BEGINNING at an ACP LS 4527 monumenting the Southwest corner of said Lot 2;

THENCE N 00°00’03” E along the West line of Lot 2 a distance of 196.00 feet to the POINT OF BEGINNING;

THENCE continue N 00°00’03” E along said West line a distance of 1,247.69 feet to an ACP LS 4527 on a South line of Lot 2;

THENCE N 89°42’29” W along said South line a distance of 223.83 feet to a 1/2” iron rod on a West line of Lot 2;

THENCE N 00°00’03” W along said West line a distance of 188.62 feet to the Southeasterly line of the Wash Parcel as recorded in Docket 11195 at page 807;

THENCE N 89°59’57” E along said Southeasterly line a distance of 6.85 feet to a point on the arc of a non-tangent curve concave to the West, a radial line of said curve through said point having a bearing of S 60°54’38” E;

THENCE Northerly along said Southeasterly line, along the arc of said curve, to the left, having a radius of 945.00 feet, with a chord of N 20°34’28” E 279.85 feet, and a central angle of 17°01’48” for an arc distance of 280.88 feet to the non-tangent line South line of the Wal-Mart parcel as recorded in Docket 11196 at Page 831;

THENCE S 00°05’09” E along said South line a distance of 46.00 feet;

THENCE N 89°59’41” E along said South line a distance of 18.15 feet to a point of curvature of a tangent curve concave to the Southwest;

THENCE Southeasterly along said South line, along the arc of said curve, to the right, having a radius of 2.50 feet, with a chord of S 45°00’19” E 3.54 feet, and a central angle of 90°00’00” for an arc distance of 3.93 feet to a point of tangency;

THENCE S 00°00’19” E along said South line a distance of 39.32 feet;

THENCE S 49°27’56” E along said South line a distance of 20.64 feet;

THENCE N 44°56’21” E along said South line a distance of 169.40 feet to a point of curvature of a tangent curve concave to the South;

THENCE Easterly along said South line, along the arc of said curve, to the right, having a radius of 50.00 feet, with a chord of N 67°36’48” E 38.55 feet, and a central angle of 45°20’54” for an arc distance of 39.57 feet to a point of tangency;

 

15

THENCE S 89°42’45” E along said South line a distance of 139.15 feet to a point of curvature of a tangent curve concave to the North;

THENCE Easterly along said South line, along the arc of said curve, to the left, having a radius of 50.00 feet, with a chord of N 67°38’02” E 38.52 feet, and a central angle of 45°18’25” for an arc distance of 39.54 feet to a point of tangency;

THENCE N 44°58’50” E along said South line a distance of 240.29 feet;

THENCE S 89°43’59” E along said South line a distance of 390.63 feet;

THENCE N 44°56’41” E along said South line a distance of 149.07 feet;

THENCE N 45°02’42” W along said South line a distance of 45.34 feet to a point on the arc of a non-tangent curve concave to the South, a radial line of said curve through said point having a bearing of N 30°40’33” E;

THENCE Westerly along said South line, along the arc of said curve, to the left, having a radius of 112.50 feet, with a chord of N 74°31’06” W 58.97 feet, and a central angle of 30°23’18” for an arc distance of 59.67 feet to a point of tangency;

THENCE N 89°42’45” W along said South line a distance of 34.01 feet to the East line of said Wal-Mart parcel;

THENCE N 00°03’11” E along said East line a distance of 542.20 feet;

THENCE S 89°42’45” E along said East line and the Easterly prolongation a distance of 313.85 feet to the West right-of-way line of La Cholla Boulevard;

THENCE S 00°05’48” E along said West right-of-way line a distance of 67.02 feet;

THENCE N 89°42’35” W 176.14 feet;

THENCE S 00°03’11” W 136.13 feet to a point of curvature of a tangent curve concave to the Northeast;

THENCE Southeasterly along the arc of said curve, to the left, having a radius of 12.00 feet, with a chord of S 44°49’42” E 16.94 feet, and a central angle of 89°45’46” for an arc distance of 18.80 feet to a point of tangency;

 

16

THENCE S 89°42’35” E 153.32 feet;

THENCE N 82°07’29” E 11.36 feet to the West right-of-way line of La Cholla Boulevard;

THENCE S 00°05’48” E along said West right-of-way line a distance of 33.22 feet;

THENCE N 79°08’24” W 14.67 feet;

THENCE N 89°42’35” W 161.42 feet to a point of curvature of a tangent curve concave to the Southeast;

THENCE Southwesterly along the arc of said curve, to the left, having a radius of 12.00 feet, with a chord of S 45°10’18” W 17.01 feet, and a central angle of 90°14’14” for an arc distance of 18.90 feet to a point of tangency;

THENCE S 00°03’11” W 200.78 feet;

THENCE S 89°42’35” E 180.26 feet;

THENCE N 73°15’07” E 8.17 feet to the West right-of-way line of La Cholla Boulevard;

THENCE South along said West right-of-way line a distance of 55.46 feet;

THENCE S 88°58’20” W 7.89 feet to a point on the arc of a non-tangent curve concave to the Southeast, a radial line of said curve through said point having a bearing of N 06°41’23” W;

THENCE Southwesterly along the arc of said curve, to the left, having a radius of 223.50 feet, with a chord of S 64°07’47” W 146.86 feet, and a central angle of 38°21’40” for an arc distance of 149.64 feet to a point of tangency;

THENCE S 44°56’57” W 106.08 feet;

THENCE S 45°03’04” E 104.53 feet;

THENCE N 44°56’56” E 19.65 feet;

THENCE S 45°03’04” E 119.00 feet;

THENCE East 42.90 feet to the West right-of-way line of La Cholla Boulevard;

THENCE South along said West right-of-way line a distance of 1,767.34 feet to an ACP LS 4527 monumenting the Northeast comer of Lot 1 of said plat;

THENCE N 89°42’42” W along the North line of Lot 1 a distance of 250.00 feet to an ACP LS 4527 monumenting the Northwest corner of Lot 1;

THENCE S 71°03’55” W 45.20 feet;

THENCE S 89°36’44” W 125.89 feet to a point of curvature of a tangent curve concave to the Southeast;

THENCE Southwesterly along the arc of said curve, to the left, having a radius of 24.00 feet, with a chord of S 44°48’22” W 33.83 feet, and a central angle of 89°36’44” for an arc distance of 37.54 feet to a point of tangency;

THENCE South 201.87 feet;

THENCE S 11°35’41” E 7.81 feet to the North right-of-way line of Ina Road;

THENCE N 89°42’42” W along said North right-of-way line a distance of 466.48 feet;

THENCE N 09°05’11” E 9.80 feet;

THENCE N 00°00’14” W 217.47 feet to a point of curvature of a tangent curve concave to the Southwest;

 

17

THENCE Northwesterly along the arc of said curve, to the left, having a radius of 18.00 feet, with a chord of N 44°51’28” W 25.39 feet, and a central angle of 89°42’28” for an arc distance of 28.18 feet to a point of tangency;

THENCE N 89°42’42” W 106.70 feet to a point of curvature of a tangent curve concave to the Southeast;

THENCE Southwesterly along the arc of said curve, to the left, having a radius of 12.00 feet, with a chord of S 45°08’41” W 17.01 feet, and a central angle of 90°17’15” for an arc distance of 18.91 feet to a point of tangency;

THENCE S 00°00’03” W 37.00 feet;

THENCE N 89°42’42” W 63.00 feet to the POINT OF BEGINNING.

PARCEL 2

Easements for pedestrian and vehicular ingress and egress and parking as set forth in Declarations of Easements, Covenants, Conditions and Restrictions recorded in Docket 11899 at page 1896, Docket 11939 at page 3470, and in Docket 11489 at page 3224.

Easements for pedestrian and vehicular ingress and egress and parking and truck access as set forth in Declaration of Easements, Covenants, Conditions and Restrictions recorded in Docket 11961 at page 4398.

Easements for incidental light pollution, vehicular and pedestrian access, ingress and egress, and maintenance of drainage channel as set forth in Easements with Covenants and Restrictions affecting Land recorded in Docket 11196 at page 836.

Easements for vehicular and pedestrian ingress and egress and parking as set forth in Reciprocal Easement Agreement and Covenant Not to Build recorded in Docket 11196 at page 858.

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EXHIBIT B

	 
	 	 	 

ALLOCATION OF AGGREGATE CONSIDERATION
VALUE AMONG TRANSFERORS

	 	 	 	 	 	 	 	 
	Transferor:	 	 	Percentage of Aggregate

  Consideration Value	 	 	Amount of Aggregate

  Consideration Value	 
	 	 	 	 	 	 	 	 
	Ash Foothills Investors, LLC	 	 	___%	 	 	$___________	 
	Bruce Ash	 	 	___%	 	 	$___________	 
	Paul Ash	 	 	___%	 	 	$___________	 
	Total	 	 	100%	 	 	$  4,500,000.00	 

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EXHIBIT C

MEMBERSHIP INTEREST TRANSFER FORM

     For valuable consideration, the undersigned (“Assignor”) hereby assigns and conveys to ____________________, a ____________________ (“Assignee”), all of the Assignor’s membership and other rights of any nature in and to Feldman Mall Investors, LLC, an Arizona limited liability company.  The foregoing assignment is made pursuant to the terms of that certain Ash Ownership Interests Assignment Agreement dated July __, 2004 between Assignor, Paul Ash, Bruce Ash, and Feldman Equities of Arizona, L.L.C.

Dated:  ____________________, 200_

	 
	ASSIGNOR:

  Ash Foothills Investors, LLC,

        an Arizona limited liability company

        By:            
            
            
            
            
            

              Name:

              Title:
	 

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EXHIBIT D

STOCK TRANSFER FORM

     For valuable consideration, the undersigned (“Assignors”) hereby assign and convey to ____________________, a ____________________ (“Assignee”), all of the Assignor’s shares of stock in Feldman Mall Partner Inc., an Arizona corporation and Feldman Pads Partner Inc., an Arizona corporation.  The foregoing assignment is made pursuant to the terms of that certain Ash Ownership Interests Assignment Agreement dated July __, 2004 between Assignor, Paul Ash, Bruce Ash, and Feldman Equities of Arizona, L.L.C.

Dated:  ____________________, 200_

	 
	ASSIGNORS:

            
            
            
            
            
            

Paul Ash

            
            
            
            
            
            

Bruce Ash	 

21

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