Document:

Prepared and filed by St Ives Financial

AGREEMENT AND RELEASE

          THIS AGREEMENT AND RELEASE, is made by and between Jeffrey Erhart (the “Executive”) and Feldman Mall Properties, Inc. (the “Company”) as of November 3, 2006.

          WHEREAS, the Company and the Executive have entered into an employment agreement dated August 13, 2004, (the “Employment Agreement”); and

          WHEREAS, the Executive and the Company wish to set forth their mutual understanding of certain terms of the Executive’s separation from employment;

          NOW, THEREFORE, in consideration of the mutual covenants and commitments provided for herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both parties, the Executive and the Company hereby agree as follows:

          1.     Termination of Employment.  The date of the Executive’s termination of employment at the Company is as of November 3, 2006 (the “Termination Date”).  The Executive is entitled to all salary and benefits normally accruing through the Termination Date including accrued and unpaid vacation or sick pay but excluding any bonus for the calendar year 2006.  As of the Termination Date, the Executive shall cease to be eligible to receive any further Company benefits whatsoever (including, but not limited to, medical coverage, retirement plan benefits, cellular phone reimbursement, and car allowance, except that Executive shall have the right to COBRA
insurance benefits, and continued applicability of director’s and officer’s errors and omissions insurance, but only to the extent that such coverage protects the Executive in his former capacity as an officer
of the Company).

          2.     Waiver.  The Employment Agreement shall terminate as of the Termination Date.  Notwithstanding any provision of the Employment Agreement to the contrary, the Executive hereby waives all rights under or in connection with the Employment Agreement with respect to the termination, including, for the avoidance of doubt, any claim that the Executive’s termination of employment was involuntary or for Good Reason, except as otherwise specifically provided hereunder.

 
 

          3.     Purchase of Interests.  The Company shall pay to the Executive in cash an amount equal to $1,743,748 (the “Purchase Price”), which represents his equity interests in the Company and its affiliates consisting of, the Executive’s 160,000 OP Units in Feldman Equities Operating Partnership LLC, and Erhart’s membership interest (which the Company values as being equivalent to 18,846 OP Units) in Feldman Partners LLC, but specifically excluding Erhart’s unvested 3,077 shares of restricted stock; such shares shall be deemed forfeited to Company for purposes of payment to Executive hereunder, at a price of $9.75 per share of the Company,
payable in cash as follows: (i) ninety percent (90%) of the Purchase Price shall be paid within 5 business days of the Effective Date (as defined below), and (ii) subject to clause (B) below, the remaining ten percent (10%) of the Purchase Price shall be paid on or about April 30, 2007, provided that (A) such payment shall not be due if Executive has materially breached any material provision of this Agreement and Release during the period beginning on the Termination Date and ending on April 30, 2007, and James C. Bourg (or in the event that Mr. Bourg is unavailable to make such determination, the determination shall be made by the board of directors of the Company) determines in writing that in his or its reasonable discretion that Executive has materially breached a material provision
of this Agreement and/or Release, with Mr. Bourg or the board of directors of the Company, as applicable having no right to make such a determination unless Executive fails to comply with an obligation hereunder within five (5) days following written notice from Mr. Bourg describing the obligation and stating that Executive has failed to comply with such obligation, (B) if requested by the Company, the Executive and the Company execute a mutual release substantially similar to Paragraphs 11, 12, 13 and 14, and such release has become irrevocable, (C) Company shall pay Executive interest on the ten percent (10%) of the Purchase Price from the Termination Date through April 30, 2007 at a rate of 5% per annum (with such interest rate increasing to 12% per annum if the payment is not paid when
due).  Company waives any right to not pay the sums required to be paid under this paragraph for any reason other than Executive’s material breach of any material provision of this Agreement and Mr. Bourg’s (or the board of directors of the Company, as applicable) determination under part (A) above.

2

 
 

          4.     Acknowledgment of Consideration.  The Executive acknowledges and agrees that his execution of this Agreement and Release is a prerequisite to his receipt of all payments provided for in paragraph 3 above.

          5.     Return of Property.  The Executive acknowledges that all written materials, records, and documents made by him or in his possession, custody, or control concerning the business or affairs of the Company and its affiliates are the sole property of the Company and its affiliates.  The Executive  agrees that he will return immediately following the Effective Date or has returned to the Company, all property of the Company or its affiliates which is or has been in his possession, custody, or control, including but not limited to documents (whether in hard copy format or electronically stored) and any and all copies thereof; cellular telephones, personal handheld
devices, and any other electrical or other equipment; and company credit cards, identification cards or any other applicable access rights, accounts or lines of credit he may have had access to due to his employment with the Company.  The Executive represents that there are no documents or other property of the Company or its affiliates made by him or is or has been in his possession.  In addition, the Executive represents that there are no documents or other property of the Company or its affiliates that is in his possession, custody, or control that cannot be accessed by the Company and that immediately upon request by the Company he will disclose to the Company all computer passwords and other like access codes to any Company documents, e-mails, records or other information.
Notwithstanding the foregoing, the Executive may retain his Company supplied laptop computer, which he will promptly return to the Company no later than April 30, 2007, and, in order to allow Executive to provide counsel to Company, the Executive may retain electronic copies of Company documents until the later to occur of April 30, 2007 or the date on which Company requests that such electronic copies of documents be returned to Company.

          6.     Post-Termination Consulting and Services.  (a) The Executive agrees to cooperate to use his commercially reasonable efforts after the Termination Date to assist the Company in the transfer of the duties and responsibilities that he performed in connection with his employment with the Company to any successor or other persons designated by the Company.  Within 14 business days following the Termination Date (or sooner if the matter is reasonably deemed to be urgent by the Company), the Executive shall provide a detailed list of outstanding or pending legal issues, including any contact persons involved in each issue, and a detailed memorandum for use by any
successor to the Executive’s responsibilities describing the duties associated therewith and providing strategy and guidance for resolving all pending legal and other issues for which the Executive was responsible. Executive shall revise and supplement such memorandum upon request from time to time by Company.

3

 
 

          (b)      To the extent practicable, the Executive shall complete all pending legal matters that are reasonably capable of being substantially completed or otherwise resolved by him within two months following the Termination Date.  A complete description of such matters shall be drafted by the Executive and submitted to the Company within 7 days following the Termination Date.

          (c)       The Executive agrees that, upon reasonable request of the Company, the Executive shall (A) consult with the Company with respect to all matters concerning the Company in which the Executive had personal involvement during his period of employment with the Company or any of its subsidiaries or affiliates, (B) assist the Company in the defense of any claims or potential claims that may be made or threatened to be made against it in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a “Proceeding”) and in the prosecution of any claims that may be made by the Company in any Proceeding, that may
relate to matters with respect to which the Executive has or had personal knowledge or involvement during his employment with the Company or any of its subsidiaries or affiliates, and unless precluded by law, promptly inform the Company if the Executive is asked to participate (or otherwise become involved) in any Proceeding involving such claims or potential claims, and (C) unless precluded by law, promptly inform the Company if the Executive is asked to assist in any investigation (whether governmental or private) of the Company (or its actions), regardless of whether a lawsuit has then been filed against the Company with respect to such investigation.  The Company agrees to reimburse the Executive for all of his reasonable out-of-pocket expenses associated with such assistance,
including travel expenses and any attorneys’ fees.  The Executive’s obligations under this subparagraph (c) shall continue until April 30, 2009.

4

 
 

          (d)      Notwithstanding the foregoing, Executive shall have no obligation to expend more than forty (40) hours (the “Service Obligation”) on the matters described in paragraphs (a) through (c) above unless Company agrees to compensate Executive at a rate of $300 per hour for any time in excess of 40 hours, with Executive having the right to increase such hourly rate upon thirty (30) days advance notice to Company to match the rate that Executive charges third parties for Executive’s services.

          7.     Covenants.  Notwithstanding the termination of the Employment Agreement, the Executive acknowledges the continuing applicability of the covenants and other provisions of Section 6.1(b) and (c) and 6.2 of the Employment Agreement, with regard to non-competition, confidentiality and protection of intellectual property.  

          8.     Indemnification.  Notwithstanding the termination of the Employment Agreement, the Company acknowledges its obligation to indemnify the Executive regarding actions taken during his employment in accordance with Section 7.4 of the Employment Agreement.

          9.     Exit Interview.  The Executive shall participate in any exit interviews with officers and/or directors of the Company as the Company shall request, provided, however, that if Company requests that any interview take place outside the Phoenix metropolitan area, Company shall pay Executive’s reasonable expenses of attending such interview.

          10.     Regulatory Filings.  The Executive shall cooperate with the Company in preparing and filing with any regulatory entities any report, filing or other document required by law or appropriate business practice in connection with the Executive’s employment, termination of employment or the transactions contemplated by this Agreement and Release.  Company shall cause to be filed with any regulatory entities any report, filing or other document required by law or appropriate business practice in connection with the Executive’s employment, termination of employment or the transactions contemplated by this Agreement and Release.  The Company shall also have
the right to disclose the terms of this Agreement to its stockholders or research analysts.

5

 
 

          11.     General Release.  (a) The Executive, for himself and his heirs, executors, administrators, successors, and assigns, hereby releases and discharges (i) the Company and its direct and indirect parents and subsidiaries and its other affiliated companies; (ii) each of their respective past and present officers, directors, agents, and employees; and (iii) all the employee benefit plans of the Company or any of its affiliated companies, any trusts and other funding vehicles established in connection with any such plans, any members of committees established under the terms of any such plans, and any administrators or fiduciaries of any such plans, from any and all
actions, causes of action, claims, demands, grievances, and complaints, known and unknown, which he or his heirs, executors, administrators, successors, and assigns have, ever had, or ever may have based upon any act or omission occurring up to and including the Effective Date of this Agreement and Release; provided, however, that this Release shall not extend to his right to seek enforcement of this Agreement and Release and to any rights to receive accrued benefits or other payments under and in accordance with the terms of any employee benefit plan of the Company in which he is a participant.

            (b)     The Executive acknowledges and agrees that, except as otherwise provided in the preceding subsection, this release is intended to cover and does cover, but is not limited to, (i) any claim under Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, the Equal Pay Act, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act of 1990, or the Family and Medical Leave Act, each as amended; (ii) any claim of employment discrimination whether based on a federal, state, or local statute
  or court or administrative decision; (iii) any claim for wrongful or abusive discharge, breach of contract, invasion of privacy, intentional infliction of emotional distress, defamation, or other common law contract or tort claims; (iv) any claims, whether statutory, common law, or otherwise, arising out of the terms or conditions of his employment at the Company or his separation from the Company; and (v) any claim for attorneys’ fees,
  costs, disbursements, or other like expenses.
      

  6

  

  

        

  
          (c)     The Company, on behalf of itself and its direct and indirect parents and subsidiaries and its other affiliated companies, hereby releases and forever discharges the Executive from any and all claims, demands, obligations, liabilities and causes of action of any kind or description whatsoever, in law, equity or otherwise, whether known or unknown, that the Company had, may have had or now has against the Executive, as of the date of the execution of this Agreement and Release by the Company, arising out of or relating to the Executive’s employment relationship, or the termination of that relationship, with the Company or any affiliate, including, but not limited to,
any claim, demand, obligation, liability or cause of action arising under any Federal, state, or local employment law or ordinance, tort, contract, or alleged violation of any other legal obligation.  Anything to the contrary notwithstanding in this Agreement and Release or the Employment Agreement, nothing herein shall release the Executive from any claims or damages based on (i) any right or claim that arises after the date on which the Company executes this Release, including any right to enforce the Employment Agreement with respect to provisions that survive termination of employment as set forth herein, (ii) any right the Company may have to obtain contribution as permitted by law in the event of entry of judgment against the Company as a result of any act or failure to act for
which the Executive and the Company are jointly liable, or (iii) any past or prospective act of willful misconduct (excluding any claim based on facts of which the Company currently has actual knowledge and which facts would lead a reasonable person to believe that the Company currently has a claim), intentional breach of material duties as the general counsel of the Company (excluding any claim based on facts of which the Company currently has actual knowledge and which facts would lead a reasonable person to believe that the Company currently has a claim), gross negligence, fraud or misappropriation of funds.

          12.     Assertion of Released Claims.  If the Executive or the Company commences or pursues any judicial action or other proceeding in any forum which is ultimately determined to be barred, in whole or part, by the release contained in paragraph 11 hereof, other than a claim by Executive under the Age Discrimination in Employment Act, the claiming party will pay the reasonable attorneys' fees and costs actually incurred by the other party or any other party found to be protected from liability by the release; provided, however, that the Executive shall not be required to make such a payment in respect of a claim under the Age Discrimination in Employment Act unless the
claim is brought in bad faith.  This Agreement and Release shall not limit in any way the Company’s or Executive’s rights to seek payment of legal fees to the extent the Company or Executive may do so in accordance with both federal and state law.

7

 

          13.     Acknowledgement of Facts Regarding Release.  (a) The Executive acknowledges that he is hereby advised to consult with legal counsel before signing this Agreement and Release; that he has obtained such advice as he deems necessary with respect to this Agreement and Release; that he has fully read and understood the terms of this Agreement and Release; and that he is signing this Agreement and Release knowingly and voluntarily, without any duress, coercion, or undue influence, and with an intent to be bound.

          (b)     The Executive further acknowledges that he has been given at least 21 days to consider this Agreement and Release and that he has elected to sign it on this date after having taken what he considers to be a sufficient period of time to obtain advice, consider the Agreement and Release, and evaluate his alternatives.  The Executive and the Company agree that any changes to this Agreement and Release, whether material or immaterial, prior to its execution, will not restart the running of the 21-day period.  

          14.     Revocation.  The Executive understands that he is entitled to revoke this Agreement and Release within seven days following his execution of the Agreement and Release and that this Agreement and Release in its entirety will not become effective and no payments will be due hereunder until the seven-day period has expired (the time of such expiration, the “Effective Date”).  Revocation may be effected by giving written notice delivered to Larry Feldman at 1010 Northern Blvd., Suite 314, Great Neck, New York 11021, with a copy to Jim Bourg at 2201 Camelback Rd., Suite 350, Phoenix, Arizona within the seven-day period.  In the event that the Executive
timely exercises his right to revoke this Agreement and Release, this Agreement and Release (including without limitation, the Company’s release set forth in paragragh 11(c) hereof) will immediately become null and void, and the Company will have no obligations hereunder.  

8

  

          15.     Entire Agreement.  This Agreement and Release contains the entire agreement and understanding of the parties with respect to the subject matter hereof, including without limitation all payments due with respect to or in connection with the Executive’s termination of employment with the Company pursuant to the Employment Agreement and supersedes and replaces all prior negotiations, agreements and proposed agreements, whether written or oral with respect to such matters.  The Executive and the Company each acknowledge and confirm that neither they nor any agent or attorney has made any promise, representation, or warranty whatever, express, implied, or
statutory, not contained herein concerning the subject matter hereof, to induce the other party to execute the Agreement and Release.

          16.     No Third-Party Beneficiaries.  This Agreement and Release is solely for the benefit of the parties set forth in this Agreement and Release, and the Executive’s estate in the event of death or disability prior to payments being made, and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claims or action or other right in excess of those existing without reference to this Agreement and Release.

          17.     Certain Matters Relating to Enforceability.  Any provision of this Agreement and Release which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.  Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

9

  

          18.     No Oral Modification.  This Agreement and Release may not be modified or amended except by an instrument in writing signed by the parties hereto.

          19.     Governing Law.  This Agreement and Release shall be governed by the substantive laws of the State of New York without regard to its conflict of laws provisions.

          20.     Tax Withholding.  The Company may withhold from any compensation or benefits payable under this Separation Agreement all Federal, State, City, or other taxes as shall be required pursuant to any law or governmental regulations or ruling.  Unless otherwise required by law, the Company shall not withhold anything from the amounts payable to Executive under paragraph 3 of this Agreement; Company acknowledges that it currently knows of no basis for such withholding from the amounts payable under paragraph 3.

          21.     Counterparts.  This Agreement and Release may be signed in one or more counterparts, each of such counterparts constituting an original and all of such counterparts together constituting one instrument.

          22.     Headings.  The headings of the paragraphs herein are included for reference only and are not intended to affect the meaning or interpretation of the Agreement and Release.

          23.     Attorney’s Fees.  The prevailing party in any litigation or arbitration regarding this Agreement shall be entitled to recover its costs, reasonable attorneys fees and other reasonable expenses incurred in connection with such litigation or arbitration.

          24.     Arbitration.  Any dispute regarding this Agreement shall be resolved by binding arbitration before an arbitrator selected by the parties, or in the absence of agreement within thirty (30) days following request, before an arbitrator selected by the New York City office of the American Arbitration Association.  The arbitration shall be governed by the rules of the American Arbitration Association unless otherwise agreed by the parties.  Judgment may be entered in any court on the arbitration award.

          24.     Resignation.  This Agreement shall constitute Erhart’s resignation, effective as of the Termination Date as an officer, trustee and/or director of the Company and all of its affiliates, including without limitation all entities listed on Exhibit A attached hereto. 

 

10

 
 

          25.     Further Documents.  Executive and Company shall each execute and deliver to the other any further documents or instruments reasonably requested by the other to effectuate this Agreement, provided, however, that all such documents and instruments shall be without recourse or liability to the providing party.

          26.     Feldman Partners LLC. Executive hereby releases any claims it has against Feldman Partners LLC, an Arizona Limited Liability Company. 

11

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement and Release as of the date and year first
above written.  

	 	/s/ Jeffrey Erhart     
	 	JEFFREY ERHART
	 	 	 
	 	Date: November 3, 2006     
	 	 	 
	 	FELDMAN MALL PROPERTIES, INC.
	 	 	 
	 	 By:	/s/ Larry Feldman      
	 	 	Name: Larry Feldman
	 	 	Title: Chief Executive Officer
	 	 	 
	 	 	Date: November 3, 2006
	 	 	 

12

 

EXHIBIT A

Foothills Mall LLC

Feldman Foothills Mall LP

Feldman Foothills Pads LP

Feldman Mall Investors LLC

Feldman Pads Partner Inc.

Feldman Mall Partner Inc.

Foothills Famous LLC

Feldman Lubert Adler Harrisburg LP

Feldman Harrisburg General Partner Inc.

Feldman Equities General Partner Inc.

Feldman Harrisburg Limited Partnership LP

Feldman Equities Operating Partnership, LP

Feldman Equities of Arizona, LLC

Feldman Equities Management LLC

Feldman Equities Management, Inc.

Feldman Mall Properties, Inc.

FMP Colonie Center LLC

FMP Stratford LLC

FMP Stratford JCP Parcel LLC

FMP Denton General Partner LLC

FMP Statutory Trust I

Feldman Holdings Business Trust I

Feldman Holdings Business Trust II

FMP Tallahassee LLC

FMP Northgate LLC

FMP Northgate Outparcel LLC

FMP Kimco Foothills LLC

FMP Kimco Foothills Member LLC

FMP Colonie LLC

FMP 191 Colonie Member LLC

13Q3 2006 10Q Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement is entered into as of July 7, 2006 by and between SHOE PAVILION, INC., a
Delaware corporation (the "Company") and BRUCE ROSS, an individual ("Executive").

1.ENGAGEMENT. The Company hereby engages Executive to render services as Chief Financial Officer of the
Company pursuant to the terms and conditions hereof, and Executive hereby accepts such engagement. Executive shall follow the
direction and supervision of the Company's Board of Directors, Chief Executive Officer and President.

2.NATURE OF SERVICES.

(a)   General. In his capacity as Chief Financial Officer, Executive shall do and perform all services, acts or things necessary or
advisable to manage and conduct the business of the Company subject at all times to the policies set by the Company's Board of
Directors, Chief Executive Officer and President, and to the consent of the Board of Directors, Chief Executive Officer and President
when required by the terms of this Agreement. In particular, Executive shall have full authority and responsibility for the Company's
fiscal operating results utilizing generally accepted accounting principles such as cost accounting and budgets, shall counsel senior
management on fiscal control and profitability, prepare, present and interpret financial reports to senior management and shall assist in
attaining established Company financial goals.

(b)   Uniqueness of Services. Executive hereby represents and agrees that the services to be performed under the terms of
this Agreement are of a special, unique, unusual, extraordinary and intellectual character that gives them a peculiar value, the loss of
which cannot be reasonably or adequately compensated in damages in an action at law. Executive therefore expressly agrees that the
Company, in addition to any other rights or remedies that the Company may possess, shall be entitled to injunctive and other equitable
relief to prevent or remedy a breach of this Agreement by Executive.

3.DUTIES AND OBLIGATIONS OF EXECUTIVE.  During the term of this Agreement, Executive shall
not directly or indirectly, either as an employee, employer, consultant, agent, principal
partner, stockholder, corporate officer, director, or in any other individual or representative capacity, engage or
participate in any aspect of business that is in competition in any manner whatsoever with the primary business of the Company.
Executive shall not, directly or indirectly, solicit or divert business from, or attempt to convert to other methods of using the same or
similar products or services provided by the Company, any client, account or locations of the Company with which Executive has had
any contact as a result of his employment with the Company. Executive acknowledges and agrees that conduct of any said activities
(even one not at the time then being conducted by the Company) by any person other than the Company might materially impair the
business and prospects of the Company and could accordingly constitute competition with the Company.

4.TERM. The initial term of employment under this Agreement shall begin on the date hereof and shall continue for a
period of three (3) years from that date, subject to prior termination in accordance with the terms hereof. 

5.COMPENSATION.

(a)   Annual Salary. As compensation for the employment services to be rendered by Executive hereunder, including all
services as an officer or director of the Company and any of its subsidiaries, the Company agrees to pay, or cause to be paid, to
Executive, and Executive agrees to accept, payable in accordance with the Company's regular payroll practices applicable to its
executive employees, an initial annual salary of $225,000.00. Executive's annual salary hereunder for the remaining years of
employment shall be reviewed every twelve (12) months by the Compensation Committee of the Board of Directors of the Company to
determine whether Executive should receive a salary increase. Any such increases shall be determined by the Compensation
Committee in its sole discretion. 

(b)   Bonus. Executive shall be eligible to receive an Annual Performance Bonus as a percentage of his salary, subject to the
review and approval of the Compensation Committee.

(c)   Participation in 2006 Management Incentive Plan. Executive shall be eligible to receive stock options or restricted stock
under the Company's 2006 Management Incentive Plan, as amended from time to time, at the discretion of the Compensation
Committee.

(d)   Fringe Benefits. Executive shall be eligible to participate, in accordance with their terms, in all medical and health plans,
life insurance and pension plans and such other employment benefits or programs as are maintained by the Company for its employees
provided that the Company shall at all times be free to modify or amend such plans on a Company wide basis in accordance with the
provisions thereof.

(e)   Paid Vacations. Executive shall be entitled to paid vacation in accordance with the vacation policy of the
Company.

(f)   Reimbursement of Expenses. The Company shall reimburse Executive for all ordinary and necessary business,
entertainment and other expenses reasonably incurred by Executive in the performance of his duties and obligations under this
Agreement. The Company agrees to repay or reimburse Executive for such business expenses upon the presentation of itemized
statements of such business expenses on the Company's regular form used for such purposes.

6.TERMINATION.

(a)   Termination by the Company. Executive's employment hereunder may be terminated at any time upon written
notice from the Company to Executive:

(i)upon the determination by the Board of Directors of the Company that Executive's performance of his duties has not been
fully satisfactory for any reason which would not constitute justifiable cause (as hereinafter defined), upon thirty (30) days' prior written
notice to Executive; or

(ii)upon the determination by the Board of Directors of the Company that there is justifiable cause (as hereinafter defined) for
such termination, upon ten (10) days' prior written notice to Executive.

(b)   Termination Upon Death or Disability. Executive's employment shall terminate upon:

(i)the death of Executive; or

(ii)the "disability" of Executive (as hereinafter defined) pursuant to subsection (d) hereof.

(c)   Death of Executive. If Executive shall die during the term of his employment hereunder, this Agreement shall terminate
immediately. In such event, the estate of Executive shall thereupon be entitled to receive such portion of Executive's annual salary as
has been accrued through the date of his death and such bonus, if any, as either the Compensation Committee or the Board of
Directors of the Company in its sole discretion may determine to award taking into account Executive's contributions to the Company
prior to his death.

(d)   Disability of Executive. Upon Executive's "disability", the Company shall have the right to terminate
Executive's employment. Notwithstanding any inability to perform his duties, Executive shall be entitled to receive his compensation as
provided herein until the termination of his employment for disability. Any termination pursuant to this subsection (d) shall be effective
on the date 30 days after which Executive shall have received written notice of the Company's election to terminate.

(e)   Termination by Company for Reasons Other than Death, Disability or Justifiable Cause. Notwithstanding any
provision to the contrary contained herein, in the event that Executive's employment is terminated by the Company at any time for any
reason other than justifiable cause, disability or death, the Company shall continue pay to Executive his salary for the remaining
balance of the term of this Agreement.  In the event of any termination of employment pursuant to this Subsection (e), Executive shall
have the right to exercise any vested options to purchase shares of the Company's common stock following such termination in
accordance with the terms of any underlying option agreement.

(f)   Termination After a Change of Control or Termination by Executive for Good Reason. The following payments
and benefits will be provided to Executive by the Company (in addition to any compensation or benefits to which Executive may
otherwise be entitled under any other agreement, plan or arrangement with the Company, other than a plan, policy or other
arrangement providing for payments due to severance of employment) in the event of a termination of employment (as hereinafter
defined) of Executive during a Change of Control (as hereinafter defined) of the Company or Executive terminates his employment for
Good Reason: 

(i) Salary.  The Company shall continue to pay to Executive his salary for the remaining balance of the term of this
Agreement.

(ii) Insurance and Other Special Benefits. Executive's participation in the life, accident and health insurance, employee welfare
benefit plans (as defined in the Employee Retirement Income Security Act of 1974) and supplemental early retirement plan, split dollar
insurance program, personal health services allowance, health or social club benefits, and any other benefits (the
"Benefits") provided to Executive prior to the Change of Control or prior to Executive's termination of employment for Good
Reason shall be continued or equivalent benefits provided by the Company or any successor corporation or affiliate of such successor
corporation (the "Responsible Corporation"), at no cost to Executive, for a period of three (3) years from the date of
Executive's termination of employment. If for any reason the Responsible Corporation is unable to continue the Benefits, as required by
the preceding sentence, the Responsible Corporation shall pay to Executive a lump sum cash payment equal to the value of the
Benefits which the Responsible Corporation is unable to provide.

(iii) Stock Rights. All stock options, stock appreciation rights, stock purchase rights, restricted stock rights and any similar
rights which Executive holds shall become fully vested and be exercisable on the date of termination of employment.

(g)   Termination by Executive for Other than Good Reason. Executive may terminate his employment at any time for any
reason other than Good Reason upon 30 days' prior written notice to the Company. Upon Executive's termination of his employment
hereunder, this Agreement (other than Sections 8, 9 and 10, which shall survive) shall terminate immediately. In such event, Executive
shall be entitled to receive such portion of Executive's annual salary as has been accrued to date. Executive shall be entitled to
reimbursement of expenses pursuant to Section 5(f) hereof and to participate in the Company's benefit plans to the extent participation
by former employees is required by law or permitted by such plans, with the expense of such participation to be as specified in such
plans for former employees.

(h)   Definitions.

(i)"Annual Compensation" shall mean the sum of the annual base salary paid or earned and
annual bonus paid or earned, even though paid in a subsequent year, by Executive and all amounts credited to Executive, vested and
unvested, under any incentive compensation or other benefit or compensation plans in which Executive participates during a calendar
year.

(ii)"Change of Control" shall be deemed to occur if (i) there shall be consummated (x) any consolidation or merger
of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company's
common stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of
the Company's common stock immediately prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, or (y) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all, or substantially all, of the assets of the Company, or (ii) the stockholders of the Company shall approve any
plan or proposal for liquidation or dissolution of the Company, or (iii) any person (as such term is used in Sections 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act")), shall become the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of fifty-one percent (51%) or more of the Company's outstanding Common Stock other
than pursuant to a plan or arrangement entered into by such person and the Company.

(iii)"Disability" shall mean the inability of Executive, due to illness, accident or any other physical or mental
incapacity, substantially to perform his duties in a normal manner for a period of three (3) consecutive months or for a total of six (6)
months (whether or not consecutive) in any twelve (12) month period during the term of this Agreement as reasonably determined by
the Compensation Committee or the Board of Directors of the Company after examination of Executive by an independent physician
reasonably acceptable to Executive.

(iv)"Good Reason" shall mean (i) a reduction in the Executive's then-current base salary without the
Executive's consent, or (ii) a material diminution of Executive's duties, authority or position as Chief Financial Officer of the Company
without Executive's consent.

(v)"Justifiable Cause" shall mean and be limited to: any willful breach by Executive of the performance of any of his
duties pursuant to this Agreement; Executive's conviction (which through lapse of time or otherwise, is not subject to appeal) of any
crime or offense involving money or other property of the Company or its subsidiaries or which constitutes a felony in the jurisdiction
involved; Executive's performance of any act or his failure to act, for which it is determined by independent counsel retained by the
Board (which may be counsel for the Company), after due inquiry in which Executive is given the opportunity to be heard, that if he
were prosecuted and convicted, a crime or offense involving money or property of the Company or its subsidiaries, or which would
constitute a felony in the jurisdiction involved, would have occurred; any unauthorized disclosure by Executive to any person, firm or
corporation other than the Company, its subsidiaries and its and their directors, officers and employees, of any confidential information
or trade secret of the Company or any of its subsidiaries; any attempt by Executive to secure any improper personal profit in connection
with the business of the Company or any of its subsidiaries; the failure by Executive to devote his full time to the affairs of the Company
and its subsidiaries; Executive's pursuit of activities which in the reasonable determination of the Board of Directors of the Company are
inimical, or contrary, to the best interests of the Company; the engaging by Executive in any business other than the business of the
Company and its subsidiaries which interferes with the performance of his duties hereunder; or Executive's repeated and willful failure
to follow the instructions of the Board of Directors or the Chief Executive Officer of the Company (other than instructions which are
illegal or improper) where such conduct shall not have ceased or offense cured within ten (10) days following written warning from the
Company. Upon termination of Executive's employment for justifiable cause, this Agreement shall terminate immediately and Executive
shall not be entitled to any amounts or benefits hereunder other than such portion of Executive's annual salary as has been accrued
through the date of his termination of employment and reimbursement of expenses pursuant to Section 5 hereof.

7.REPRESENTATIONS AND AGREEMENTS OF EXECUTIVE.  Executive represents and warrants that he is free to enter
into this Agreement and to perform the duties required hereunder, and that there are no employment contracts or understandings,
restrictive covenants or other restrictions, whether written or oral, preventing the performance of his duties hereunder or requiring him to
perform employment, consulting, business related or similar duties for any other person.

8.CONFIDENTIALITY.

(a)   Non-Disclosure of Information. It is understood that the business of the Company is of a confidential nature. During
the period of Executive's employment with the Company, Executive may receive and/or may secure confidential information concerning
the Company or any of the Company's affiliates which, if known to competitors thereof, would damage the Company or its said
affiliates. Executive agrees that during and after the term of this Agreement he will not, directly or indirectly, divulge, disclose or
appropriate to his own use, or to the use of any third party, any secret, proprietary or confidential information or knowledge obtained by
him during the term hereof concerning such confidential matters of the Company or its affiliates, including, but not limited to, information
pertaining to trade secrets, systems, manuals, confidential reports, methods, processes, designs, equipment catalogs, customer lists,
operating procedures, equipment and methods used and preferred by the Company's customers, and fees paid by them. Upon
termination of this Agreement, Executive shall promptly deliver to the Company all materials of a secret or confidential nature relating to
the business of the Company or any of its affiliates which are, directly or indirectly, in the possession or under the control of
Executive.

(b)   Trade Secrets. Executive acknowledges and agrees that during the term of this Agreement and in the course of the
discharge of his duties hereunder, Executive shall have access to and become acquainted with information concerning the operation
and processes of the Company, including without limitation, proprietary, technical, financial, personnel, sales and other information that
is owned by the Company and regularly used in the operation of the Company's business, and that such information constitutes the
Company's trade secrets. Executive specifically agrees that he shall not misuse, misappropriate, or disclose any such trade secrets,
directly or indirectly, to any other person or use them in any way, either during the term of this Agreement or at any other time
thereafter, except as is required in the course of his employment hereunder. Executive acknowledges and agrees that the sale or
unauthorized use or disclosure of any of the Company's trade secrets obtained by Executive during the course of his employment
under this Agreement, including information concerning the Company's current or any future and proposed work, services, or products,
the fact that any such work, services, or products are planned, under consideration, or in production, as well as any descriptions
thereof, constitute unfair competition. Executive promises and agrees not to engage in any unfair competition with the Company, either
during the term of this Agreement or at any other time thereafter. Executive further agrees that all files, records, documents,
specifications, and similar items relating to the Company's business, whether prepared by Executive or others, are and shall remain
exclusively the property of the Company and that they shall be removed from the premises of the Company only with the express prior
written consent of the Company's Board of Directors.

9.COVENANT NOT TO SOLICIT.  Executive agrees that during the term of his employment and for a period of one year
after the termination of this Agreement for any reason, Executive will not, directly or indirectly, (i) attempt to hire any employee of the
Company, (ii) assist in such hiring by any other person, (iii) encourage any such employee to terminate his employment with the
Company, (iv) encourage any customer of the Company to terminate its relationship with the Company and (v) encourage any supplier
of the Company to terminate its relationship with the Company.

10.INDEMNIFICATION.

(a)   Indemnification by the Company. The Company shall, to the fullest extent permitted by law, indemnify Executive for any
liability, damages or losses, including reasonable attorneys' fees, sustained by Executive arising out of Executive's performance of
duties as an officer or employee of the Company. The Company also agrees to furnish Executive with the same Directors' and Officers'
liability insurance furnished to other directors or officers from time to time.

(b)   Indemnification by Executive. Executive shall indemnify and hold the Company harmless from all liability for loss, damage,
or injury to persons or property resulting from the negligence or misconduct of Executive.

 11.SUCCESSORS; AFFILIATES. This Agreement shall inure to the benefit of and be binding upon the Company,
its successors and assigns, including, without limitation, any person, partnership or corporation which may acquire all or substantially all
of the Company's assets in business, or with or into which the Company may be consolidated, merged, or otherwise reorganized, and
this provisions shall apply in the event of any subsequent merger, consolidation, reorganization or transfer. Executive shall, if requested
by the Company, perform his services and duties as specified in this Agreement, to or for the benefit of any affiliate of the Company,
including, without limitation, any parent subsidiary of the Company or any other subsidiary of any parent of the Company. 

 12.HEADINGS. The subject headings of the paragraphs and subparagraphs of this Agreement are included for
purposes of convenience only, and shall not affect the construction or interpretation of any of its provisions.

 13.SEVERABILITY. It is agreed that if any term, covenant, provision, paragraph or condition of this Agreement
shall be illegal, such illegality shall not invalidate the whole Agreement but it shall be construed as if not containing the illegal part, and
the rights and obligations of the parties shall be construed and enforced accordingly.

 14.ENTIRE AGREEMENT. The parties hereto agree that this Agreement supersedes all existing agreements between the
Company and Executive, whether oral, written, expressed or implied, and contains the entire understanding and agreement between
the parties. This Agreement shall not be amended, modified, or supplemented in any respect except by a subsequent written
agreement entered into by both parties hereto.

 15.CHOICE OF LAW. This Agreement and the performance hereunder shall be construed in accordance with and under and
pursuant to the laws of the State of California.

 16.NOTICES. All communications and notices hereunder shall be in writing and shall be deemed to have been duly given
and delivered personally if sent by United States registered or certified mail, postage prepaid:

	
If to Company: 

	
Shoe Pavilion, Inc. 

       13245 Riverside Drive, Suite 450

       Sherman Oaks, CA 91423

	
With a copy to:

	
A. John Murphy, Esq.

   Wickersham & Murphy

   430 Cambridge Avenue, Suite 100

   Palo Alto, CA 94306

	
If to Executive:

	
Mr. Bruce Ross

   972 Via Impresso

   Newbury Park, CA 91320

or to such other addresses as may be designated in writing by either of the parties.

 17.ARBITRATION. Any controversy or dispute arising out of or relating to this Agreement shall be settled by the submission
of such controversy or dispute to binding expedited arbitration in Los Angeles County, California before one or more arbitrators in
accordance with the commercial arbitration rules of the American Arbitration Association then in effect (or, if such Association shall not
then be in existence, such other organization, if any, as shall then have become the successor of such Association and if there shall be
no successor then in accordance with the prevailing provisions of the laws of the State of California relating to arbitration). After notice
has been given by one party to the other, the parties hereto shall attempt mutually to designate a single arbitrator; provided, however,
that if such arbitrator has not been mutually designated within 15 days after the foregoing notice is given, Executive and the Company
each shall, within 15 days thereafter, designate one arbitrator. No later than 45 days after the date the foregoing notice was given, the
two arbitrators so designated shall select a third arbitrator. In the event the two arbitrators do not agree on selection of said third
arbitrator within the specified period, the selection of said third arbitrator shall, upon request by either party hereto, be named by the
American Arbitration Association. If one of the parties fails to nominate an arbitrator within the period provided above for such
nomination, the arbitration shall be conducted by the sole arbitrator named by the other party. The arbitrator(s) shall promptly thereafter
receive such evidence and hold such hearings in Los Angeles County, California as such arbitrator(s) shall decide. All decisions of a
panel of three arbitrators shall be by majority vote and shall be final and conclusive. In the event of any such arbitration (or if legal
action shall be brought in connection therewith), the party prevailing in such arbitration (or litigation) shall be entitled to recover from the
party not prevailing the costs thereof, including reasonable attorneys' and accounting fees.

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement on the date first written above.

SHOE PAVILION, INC.

By:/s/ Dmitry Beinus

/s/ Bruce Ross

 Bruce Ross

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]