Document:

Exhibit
10.3

 

INVESTORS’
RIGHTS AGREEMENT

 

THIS INVESTORS’ RIGHTS
AGREEMENT, dated as of February 28, 2005 (this “Agreement”), by and
among First Union Real Estate Equity and Mortgage Investments, an
unincorporated association in the form of a business trust organized in Ohio (the
“Company”), Michael Ashner, Peter Braverman, and each of the Investors
that signs a signature page annexed hereto (referred to hereinafter
collectively as the “Investors” and individually as an “Investor”).

 

RECITALS:

 

A.                                   The
Investors and the Company have entered into that certain Securities Purchase
Agreement, dated as of the date hereof (the “Purchase Agreement”), by
and among the Company and the Investors pursuant to which the Investors will
purchase, contemporaneously with the execution and delivery of this Agreement, 3,640,000
shares of Series B-1 Cumulative Convertible Preference Shares of the Company
(the “Series B-1 Stock”), which will constitute all of the issued and
outstanding shares of Series B-1 Stock.

 

B.                                     It
is a condition precedent to the purchase of such Series B-1 Stock that the
Company, Michael Ashner and Peter Braverman enter into this Agreement with the
Investors to provide for certain agreements and obligations of the parties
following the Closing.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants and agreements contained herein and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, intending to be legally bound, the parties hereto agree as
follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1     
Definitions.  The following
terms shall have the meanings ascribed to them below:

 

“Additional Securities” shall have the meaning
set forth in Section 3.2(a).

 

“Additional Series B Preferred Shares” shall
have the meaning provided in the Certificate of Designations.

 

“Affiliate” of a Person shall have the meaning
set forth in Rule 12b-2 under the Exchange Act. 
Notwithstanding anything to the contrary set forth in this Agreement, no
limited partner or similar participant of an Investor shall be deemed an
Affiliate of such Investor.

 

 

“Agreement” shall mean this Agreement, as
amended, modified or supplemented from time to time, in accordance with the
terms hereof, together with any exhibits, schedules or other attachments
thereto.

 

“Board” or “Board of Trustees” shall
mean the Board of Trustees of the Company.

 

“Beneficial Holder” shall have the meaning set
forth in Section 2.3.

 

“Certificate of Designations” shall mean the
Company’s Certificate of Designations governing the Series B-1 Stock.

 

“Co-Investment Right” shall have the meaning
set forth in Section 3.3.

 

“Commission” shall mean the United States
Securities and Exchange Commission, or any other federal agency at the time
administering the Securities Act.

 

“Common Stock” shall mean the common shares of
beneficial interest, $1.00 par value per share, of the Company.

 

“Company” shall have the meaning set forth in
the preamble of this Agreement.

 

“Declining Preemptive Purchaser” shall have the
meaning set forth in Section 3.2(c).

 

“Derivative Securities” shall mean any
subscriptions, options, conversion rights, warrants or other agreements,
securities or commitments of any kind obligating the Company or any of its
Subsidiaries to issue, grant, deliver or sell, or cause to be issued, granted,
delivered or sold (i) any Equity Securities of the Company, or (ii) any
securities convertible into, exercisable for or exchangeable for any Equity
Securities of the Company.

 

“Disposition” shall have the meaning set forth
in Section 2.3.

 

“Equity Securities” shall mean Common Stock,
Series B-1 Stock and any other equity securities of the Company.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

 

“Excluded Shares” shall mean (i) shares of
Common Stock issuable upon conversion of, or distributions with respect to, any
shares of Series B-1 Stock or Additional Series B Preferred Shares; (ii) shares
of Common Stock issuable upon the exercise of stock options or other awards
made or denominated in shares of Common Stock under any of the Company’s stock
plans including any stock option, stock purchase, restricted stock or similar
plan hereafter adopted by the Board of Trustees and, if required by applicable
Law or stock exchange requirement, approved by the stockholders of the Company;
(iii) shares of Common Stock issued pursuant to an acquisition of a direct or
indirect interest in real property or assets related thereto, a business
(including, without

 

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limitation, by way of an
acquisition of capital stock) or the assets of a business (which assets do not
consist primarily of cash or cash equivalents) approved by the Board of Trustees;
and (iv) Shares of Common Stock issuable upon exercise or conversion of
Derivative Securities issued and outstanding on the date hereof.

 

“Governmental Body” shall mean any government
or governmental or quasi-governmental authority including, without limitation,
any federal, state, territorial, county, municipal or other governmental or
quasi-governmental agency, board, branch, bureau, commission, court, arbitral body
(public or private), department or other instrumentality or political unit or
subdivision, whether located in the United States or abroad, the National
Association of Securities Dealers, Inc., the New York Stock Exchange, the
Nasdaq National Market, the Nasdaq SmallCap Market or the American Stock
Exchange.

 

“Holder” shall mean (i) any Investor holding
shares of Series B-1 Stock (or shares of Common Stock issued on conversion
thereof) and (ii) any Person to whom an Investor has transferred shares of Series
B-1 Stock during the term of this Agreement pursuant to Section 2.3(a), Section
2.3(b)(ii) or Section 2.3(c) who is holding such Series B-1 Stock or Common
Stock issued on conversion thereof.

 

“Institutional Investor” shall mean any of the
following Persons: (i) a bank, trust company, savings and loan or other
financial institution, pension plan, broker-dealer or similar entity, (ii) an
insurance company, (iii) a pension fund, (iv) a hedge fund, (v) a venture
capital fund, (vi) a mutual fund, (vii) a leveraged buyout fund, (viii) an
investment bank, (ix) a savings association, (x) an investment fund whose
principal investors are Institutional Investors, (xi) any Investor, or (xii)
any Person that is an Affiliate of any Person named in clauses (i) through (xi).

 

“Investors” shall have the meaning set forth in
the preamble of this Agreement.

 

“Law” shall mean any treaty, statute,
ordinance, code, rule, regulation, Order or other legal requirement enacted,
adopted, promulgated, applied or followed by any Governmental Body.

 

“NYSE” 
shall mean the New York Stock Exchange.

 

“Order” shall mean any order, injunction,
judgment, decree, ruling, writ, assessment or arbitration award.

 

“Overallotment Right” shall have the meaning
set forth in Section 3.3(a).

 

“Other Transferee”  shall have the meaning set forth in Section 2.3(b).

 

“Participation” shall have the meaning set
forth in Section 3.3.

 

“Permitted Disposition” shall have the meaning
set forth in Section 2.3.

 

“Person” shall mean any natural person,
corporation, partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or other agency or political subdivision thereof.

 

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“Preemptive Acceptance Notice” shall have the
meaning set forth in Section 3.2(b).

 

“Principal Holder” shall mean each of Michael
Ashner and Peter Braverman.

 

“Preemptive Acceptance Period” shall have the
meaning set forth in Section 3.2(b).

 

“Preemptive Notice” shall have the meaning set
forth in Section 3.2(b).

 

“Preemptive Right” shall have the meaning set
forth in Section 3.2(a).

 

“Purchase Agreement” shall have the meaning
ascribed thereto in the recitals.

 

“Redemption Date” shall have the meaning set
forth in the Certificate of Designations.

 

“Registration Rights Agreement” shall mean that
certain Registration Rights Agreement, dated as of the date hereof, by and
among the Company and the Investors.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect at the time.

 

“Series B-1 Designees” shall mean the Trustees
elected by the Holders pursuant to the Certificate of Designations.

 

“Series B-1 Stock” shall have the meaning
ascribed thereto in the recitals.

 

“Trustee” shall mean a Trustee of the Company.

 

“Voting Securities” shall mean the shares of
Common Stock, Additional Series B Preferred Shares, preferred shares and any
other securities of the Company entitled to vote generally for the election of Trustees,
and any securities which are convertible into, or exercisable or exchangeable
for, Voting Securities.

 

SECTION 1.2     
General Interpretive Principles. 
Whenever used in this Agreement, except as otherwise expressly provided
or unless the context otherwise requires, any noun or pronoun shall be deemed
to include the plural as well as the singular and to cover all genders. The
name assigned this Agreement and the section captions used herein are for
convenience of reference only and shall not be construed to affect the meaning,
construction or effect hereof.  Unless
otherwise specified, the terms “hereof,” “herein” and similar terms refer  to this Agreement as a whole (including the
exhibits hereto), and references herein to Sections refer to Sections of this
Agreement.

 

ARTICLE II

ADDITIONAL AGREEMENTS

 

SECTION 2.1     
[Intentionally omitted.]

 

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SECTION 2.2     
No Shorting.  No Holder, or
any of its Affiliates under its control, will engage in, or will cause any
person or entity, directly or indirectly, to engage in “short sales” of the
Company’s Common Stock unless: (i) such Holder has converted all of the Series
B-1 Stock held by such Holder into Common Stock; or (ii) the Company fails to
pay a dividend on the Series B-1 Stock after it first declares and pays a
regular dividend on the Common Stock; or (iii) the fair market value of the
Company’s issued and outstanding Common Stock (determined by multiplying the
number of shares of Common Stock issued and outstanding by the average closing
price of the Common Stock on the NYSE over the five most recent trading days)
shall at any time be less than $71,200,000.

 

SECTION 2.3     
Dispositions.  During the
term of this Agreement, no Investor shall directly or indirectly (including,
without limitation, through the disposition or transfer of any equity interest
in another Person), sell, assign, transfer, pledge, hypothecate, grant any
option with respect to or otherwise dispose of any interest in (or enter into
an agreement or understanding with respect to the foregoing) any Series B-1
Stock (a “Disposition”), except as set forth below in this Section 2.3 (each
such exception being hereinafter referred to as a “Permitted Disposition”):

 

(a)                                  Pro
rata Dispositions of Series B-1 Stock may be made to any direct or indirect
partner, investor or participant (a “Beneficial Holder”) of any Investor pursuant
to the terms of the limited partnership agreement, operating agreement or
similar agreement of such Investor, provided, that no such Disposition shall be
made unless the Beneficial Holder agrees in writing to be bound by the terms of
this Agreement.

 

(b)                                 Dispositions
of Series B-1 Stock may be made to any Person pursuant to (i) a public offering
effected in accordance with the Registration Rights Agreement, (ii) in
privately-negotiated transactions to (A) an Institutional Investor or (B) if
such Disposition is approved by the Board (“Other Transferee”) any other Person
or (iii) pursuant to Rule 144 promulgated under the Securities Act; provided,
that no Disposition shall be made pursuant to clause (ii) of this Section 2.3(b)
unless such Institutional Investor or Other Transferee agrees in writing to become
a Holder under the terms of this Agreement.

 

(c)                                  Dispositions
of Series B-1 Stock may be made to any Affiliate of an Investor, provided that
such Affiliate agrees in writing to be bound by the terms of this Agreement.

 

ARTICLE III

ADDITIONAL COVENANTS

 

SECTION
3.1      Affiliate Transactions.  So long as at least 910,000 shares of Series
B-1 Stock are outstanding, except for (i) transactions between the Company and
any wholly-owned subsidiary and (ii) pursuant to compensatory or contractual
arrangements existing on the date hereof, neither the Company nor any
subsidiary shall enter into any transaction with, any Affiliate without the
consent of a majority of those Trustees who are considered independent under
Section 303 of the NYSE listing standards (including at least one Series B-1
Designee).  Without regard to the number
of shares of Series B-1 Stock outstanding, all such transactions shall be on
fair and reasonable terms

 

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no less favorable
to the Company than would be obtainable in a comparable arm’s length
transaction with a person not an Affiliate.

 

SECTION 3.2     
Preemptive Rights.

 

(a)                                  Until
the earlier of (i) the termination of this Agreement pursuant to Article IV
hereunder or (ii) January 2, 2010, if the Company proposes to sell any subordinated
debt, Equity Securities or Derivative Securities (other than Excluded Shares)
(all such securities, other than Excluded Shares, are referred to collectively
herein as “Additional Securities”), the Company shall first give to each
Investor (and, only with respect to preferred shares, to any Holders) holding
shares of Series B-1 Stock the opportunity (such opportunity being herein
referred to as the “Preemptive Right”) to purchase (on the same terms as
such Additional Securities are proposed to be sold) the same percentage of such
Additional Securities proposed to be sold by the Company as equals the
percentage equal to the quotient of (i) 
the number of shares of Common Stock into which the shares held by such Investor
of Series B-1 Stock could be converted, divided by (ii) the sum of  (A) 
all the outstanding shares of Common Stock of the Company and (B) the
number of shares of Common Stock into which all the shares of Series B-1 Stock
held by all Investors (and Holders, if applicable) could be converted; provided,
however, that no Preemptive Rights shall apply (i) to any issuance of
Additional Securities pursuant to a registration statement filed under the
Securities Act; or (ii) any issuance of rights to all holders of Common Stock
(or of all Voting Securities) of the Company.

 

(b)                                 At
least 20 days prior to the issuance by the Company of any Additional
Securities, the Company shall give written notice thereof (the “Preemptive
Notice”) to each Investor and Holders (if applicable).  The Preemptive Notice shall specify (i) the
name and address of the bona fide investor (if known) to whom the Company
proposes to issue or sell Additional Securities, (ii) the total amount of
capital to be raised by the Company pursuant to the issuance or sale of
Additional Securities, (iii) the number of such Additional Securities proposed
to be issued or sold, (iv) the price and other terms of the Additional
Securities and of their proposed issuance or sale, (v) the number of such
Additional Securities which such Investor is entitled to purchase (determined
as provided in Section 3.2(a)), and (vi) the period during which such Investor
may elect to purchase such Additional Securities, which period shall extend for
at least 20 days following the receipt by such Investor or Holder, as
applicable, of the Preemptive Notice (the “Preemptive Acceptance Period”).  Each Investor who desires to purchase
Additional Securities shall notify the Company within the Preemptive Acceptance
Period of the number of Additional Securities he wishes to purchase, as well as
the number, if any, of extra Additional Securities (“Extra Additional
Securities”) he would be willing to purchase in the event that all of the
Additional Securities subject to the Preemptive Right are not subscribed for by
the other Investors and Holders (the “Preemptive Acceptance Notice”).

 

(c)                                  In
the event an Investor or Holder, as applicable, declines to subscribe for all
or any part of its pro rata portion of any Additional Securities which are
subject to the Preemptive Right (the “Declining Preemptive Purchaser”)
during the Preemptive Acceptance Period, then the other Investors or Holders,
as applicable, shall have the right to subscribe for

 

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all
(or any declined part) of such Declining Preemptive Purchaser’s pro rata
portion of such Additional Securities (to be divided among the other Investors
desiring to exercise such right on a ratable basis) (the “Overallotment
Right”).  Each Investor’s Overallotment
Right, if any, shall be deemed to be exercised on the date the Preemptive
Acceptance Notice is given.

 

(d)                                 After
the conclusion of the Preemptive Acceptance Period, Additional Securities, less
any Additional Securities for which Preemptive Rights or Overallotment Rights
are exercised, may be sold by the Company, within a period of 4 months after
the expiration of the Preemptive Acceptance Period, to any other Person or
Persons at not less than the price and upon other terms and conditions not less
favorable to the Company than those set forth in the Preemptive Notice.

 

SECTION 3.3      Co-Investment Rights.  If the Company offers to any third party the
right to participate in an investment made by the Company, then the Company
shall offer to the Investors the opportunity (a “Co-Investment
Right”), on a pro rata basis, to contribute to such
investment on the same terms offered by contributing up to twenty-five percent
(25%) of the aggregate dollar amount of such investment (the “Participation”).
 The Company shall send written notice to
all Investors as soon as practicable of any Co-Investment Right, and all
Investors shall promptly notify the Company of any election to exercise their
Co-Investment Right.  If any Investor
elects not to exercise its Co-Investment Right with respect to any particular
investment, the amount subject to such holder’s Co-Investment Right shall be
offered to the remaining Investors on a pro rata basis.  Notwithstanding the foregoing, (i) the
Company shall not be obligated to offer Co-Investment Rights on any investment
made by the Company (A) with a third party who initiated the investment
opportunity or brought the investment opportunity to the attention of the
Company or (B) with a third party who was a bidder for the investment
opportunity, (ii) the Company shall not be obligated to offer Co-Investment
Rights in any joint venture, investment vehicle or special purpose entity
formed by the Company provided that Co-Investment Rights are offered with
respect to investments made by such joint venture, investment vehicle or
entity, and (iii) the Company shall offer Co-Investment Rights to the Investors
in the event that the Company makes a tender offer for limited partnership
interests of an unaffiliated entity, provided, however, that any such
Co-Investment Right shall be made on terms which provide for the Company to
receive a 20% promotional interest after Investors who exercise Co-Investment
Rights have received their initial investment plus a 7% per annum return.  If an Investor elects not to exercise
Co-Investment Rights with respect to any investment, and the other Investors elect
not to participate in the investment in which such investor elects not to
participate, the Company may offer the right to participate in such investment
to such parties as the Company shall determine in its sole discretion.  In the event the Company grants rights
substantially similar to the Co-Investment Right to any purchaser of Additional
Series B Preferred Shares, the Participation shall be increased to such
percentage as shall equitably maintain the Co-Investment Rights of the
Investors (which, in the event of $34 million in Liquidation Preference (as
defined in the Certificate of Designations) of Additional Series B Preferred,
shall mean 34.34%).  In the event that an
Investor’s Co-Investment Rights terminate as a result of the disposition of 50%
of such Investor’s Series B-1 Stock, the remaining Investors shall retain in
the aggregate the same Co-Investment Rights that all Investors held on the date
hereof.

 

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SECTION 3.4     
Drag-Along Rights.

 

(a)                                  Scope
of Rights.   As long as the Principal Holders and their
Affiliates in the aggregate own at least 10% of the outstanding Common Stock of
the Company, if both Principal Holders propose to make a Disposition of all of
the Voting Securities held by the Principal Holders to an unaffiliated third
party or parties (other than sales of Common Stock on the principal market on
which the Common Stock is listed or traded or a pledge of Common Stock in
connection with a financing) in a transaction pursuant to which the third party
or parties would obtain all or substantially all of the outstanding Common
Stock, such Principal Holder shall have the right to require each Holder who
does not exercise its redemption rights under Section 5(b) of the Certificate
of Designation to sell all of its Common Stock and to convert its Series B-1
Stock then held by it and sell the Common Stock issuable on converting to such
third party on the same terms as the Principal Holders (subject to paragraph
(b) below) and each Holder agrees to vote all of the Voting Securities owned by
it in favor of such transaction (a transaction described in this paragraph, a “Drag-Along
Sale,” and rights described in such clauses, the “Drag-Along Rights”).

 

(b)                                       Procedures.  In order to exercise a Drag-Along Right, the
Principal Holder shall notify each Holder, no later than thirty (30) days prior
to the closing of such Drag-Along Sale, such notice to set forth the timing,
proposed amount and form of consideration, terms and conditions of such
proposed sale.  Each Holder will take all
actions reasonably requested by the Principal Holder or the Company as are
required to be taken by the holders of all outstanding shares, in connection
with the consummation of such sale, and shall cause all of its Common Stock to
be sold to the designated purchaser at the same time on the same terms and
conditions and for the same type and amount of consideration as the Common
Stock being sold by the Principal Holders in such proposed sale (subject to the
provisions of this paragraph).  In
furtherance of the foregoing, in connection with a Drag-Along Sale each Investor
will (i) waive any appraisal or dissenters rights or similar rights under the
law of Ohio, and (ii) execute all documents containing such terms and
conditions as those executed by all other stockholders as reasonably directed
by the Principal Holder (subject to the provisions of this Section 3.4(b)).  Notwithstanding any other provisions hereof,
with respect to the terms and conditions of any Drag-Along Sale, such terms and
conditions will provide that the maximum liability for any Holder in respect of
all representations, warranties and indemnities given to the purchaser in any
Drag-Along Sale shall not exceed the value of the net proceeds received by such
Holder with respect to the Drag-Along Shares in such Drag-Along Sale.

 

(c)                                  Closing.  The closing of the Drag-Along Sale shall be
held at such time and place as the Principal Holder exercising such rights
shall specify and at least five (5) days notice of the time and place of the
Closing shall be given to each Holder. 
At such closing, each Investor shall deliver certificates representing
the Common Stock to be transferred, duly endorsed for transfer and accompanied
by all requisite stock transfer taxes, if any, and the Common Stock to be
transferred shall be free and clear of any liens, claims or encumbrances (other
than restrictions imposed pursuant to applicable federal and state securities
laws or by the Principal Holder thereof) and each Investor shall so represent
and warrant.

 

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SECTION 3.5      Tag-Along Rights.

 

(a)                                  Applicable
Dispositions; Tag-Along Rights.  The
term “Co-Sale Transaction” means a Disposition by either Principal
Holder of the Common Stock beneficially owned under Rule 13d-3 under the
Exchange Act by such Principal Holder; provided that the following
transactions shall not constitute a Co-Sale Transaction: (i) a
Disposition in connection with a Drag-Along Sale in which Drag-Along Rights are
exercised; (ii) a pledge of Common Stock to a financial institution or other
lender in connection with a financing; (iii) a sale of Common Stock on the
principal market on which Common Stock is listed or traded, and (iv) a
Disposition to an Affiliate of the Principal Holder or to its members so long
as such Affiliate (or members) becomes a party to this Agreement and agrees to
be bound by the terms and conditions hereof to the same extent and in the same
manner as the Principal Holder.  In the
event the Principal Holder proposes to make a Disposition of Common Stock in a
Co-Sale Transaction it shall provide notice thereof to each Holder at least thirty
(30) days prior to the date of such Disposition (the “Tag-Along Notice”).

 

(b)                                 Election
to Participate.  The Tag-Along Notice
shall describe the terms and conditions of such Disposition, including without
limitation the form and amount of all consideration payable to the Principal
Holder and any other party in connection therewith, the proposed closing date,
any conditions to closing and all other material terms and conditions.  Upon receipt of the Tag-Along Notice, each Holder
may elect to participate by converting Series B-1 Stock and  transferring the Common Stock issued upon such
conversion, on a pro  rata (based upon its percentage ownership of
Common Stock, on an as-converted basis, relative to the combined ownership of
the Principal Holder and all Holders with rights under this Section 3.5) basis
in such Disposition by giving written notice of its election to participate to
the Principal Holder not later than twenty (20) days following such
receipt.  Such transfer shall be made on
the same terms and conditions of the Disposition described in the Tag-Along
Notice.  The number of shares of Common
Stock to be transferred by the Principal Holder in connection with such
transfer shall be reduced by the number of shares of Common Stock transferred
by each Holder pursuant to this Section 3.5, unless the proposed Transferee is
willing to purchase all of the Common Stock owned by each Holder, and the
Tag-Along Notice so indicates.

 

(c)                                  Closings.  The closing of the Co-Sale Transaction shall
be held at such time and place as the Principal Holder shall specify in the
Tag-Along Notice.  At such closing, each Holder
shall deliver certificates representing the Common Stock to be transferred by
each Holder in the Co-Sale Transaction, duly endorsed for transfer and accompanied
by all requisite stock transfer taxes, if any, and  the Common Stock to be transferred shall be
free and clear of any liens, claims or encumbrances (other than restrictions
imposed pursuant to applicable federal and state securities), and each Holder
shall so represent and warrant.  Each
Holder will bear its pro rata share of the costs and expenses incurred in
connection with the Co-Sale Transaction in which its participates to the extent
such costs are incurred for the benefit of all stockholders Transferring
securities in such transaction.  Costs
incurred by each Holder on its own behalf will not be reimbursed.

 

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ARTICLE IV

TERMINATION

 

SECTION 4.1      Termination.  Without limiting any liability of the Company
or the Holders for any breach of its obligations hereunder, this Agreement will
be terminated: (i) if the Company, the Investors and the Holders holding a
majority of the Series B-1 Stock or the Common Stock issued upon conversion
thereof mutually agree in writing; (ii) on any Redemption Date under Section
5(a) of the Certificate of Designations if no Series B-1 Stock remains
outstanding; and (iii) with respect to any Investor or Holder when such
Investor makes a Disposition of all of the Series B-1 Stock and all of the
Common Stock issued on conversion thereof held by such Investor.  Notwithstanding the foregoing, the following
rights and obligations will terminate prior to termination of the Agreement as
follows, if (i) the rights and obligations provided in Section 3.2 and 3.3
shall terminate (x) for all Holders upon the redemption of all Series B-1 Stock
pursuant to Section 5(a) of the Certificate of Designations, (y) in the case of
any specific Investor shall terminate with respect to such Investor (but not
remaining Investors) upon the Disposition by such Investor of 50% or more of
the Common Stock issuable upon conversion of the Series B-1 Stock purchased by
such Investor, (ii) the provisions of Section 3.4 and 3.5 shall terminate upon
the commencement of the Shelf Effective Period pursuant to the Registration
Rights Agreement, and (iii) no person who acquires Series B-1 Stock in
connection with a Permitted Disposition under Section 2.3(b)(i) or (iii) or
Common Stock issued upon conversion thereof shall succeed to any rights or
obligations under Article III.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1      Amendment and Modification.  This Agreement may be amended, modified and
supplemented, and any of the provisions contained herein may be waived, only by
a written instrument signed by the Company and by the Investors and the Holders
owning at least a majority of the outstanding Series B-1 Stock and Common Stock
issued upon conversion thereof owned by all Holders or Investors as the case
may be.  No course of dealing between or
among any Persons having any interest in this Agreement will be deemed
effective to modify, amend or discharge any part of this Agreement or any
rights or obligations of any Person under or by reason of this Agreement.

 

SECTION 5.2      Assignment; No Third Party Beneficiaries.
Neither this Agreement, nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto (whether by operation
of Law or otherwise) without the prior written consent of the other parties,
provided, however, that (i) the obligations contained in Sections 2.2 and 2.3
shall be binding upon Beneficial Holders, Institutional Investors, Other
Transferees and Affiliates of Investors to whom a Permitted Disposition is made
and the rights provided in Section 3.5 shall be assignable in the event of such
a Permitted Disposition, and (ii) any Affiliate of an Investor may share in the
Co-Investment Rights held by such Investor under Section 3.3.  Notwithstanding anything to the contrary in
this Agreement and except as provided in clause (ii) of the preceding sentence,
the rights and obligations provided in Sections 3.2 and 3.3 are personal to
each Investor and shall inure solely to the benefit of,

 

10

 

and be binding upon, the Investors and may not be
assigned except to another Investor and except that the rights provided in
Section 3.2 with respect to offerings of preferred shares shall inure to the
benefit of any Beneficial Holder, Institutional Investor, Other Transferee or
Affiliate of an Investor, in any Permitted Disposition to such party.

 

SECTION 5.3      Binding Effect; Entire Agreement.  Except as otherwise provided herein, this
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
and executors, administrators and heirs. 
This Agreement sets forth the entire agreement and understanding between
the parties as to the subject matter hereof and merges and supersedes all prior
discussions, agreements and understandings of any and every nature among them.

 

SECTION 5.4      Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable Law, such provision(s) shall be
excluded from this Agreement and the balance of this Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms so long as the economic or legal substance of the transactions
contemplated by this Agreement are not affected in any manner materially
adverse to any party.

 

SECTION 5.5      Notices and Addresses.  Any notice, demand, request, waiver, or other
communication under this Agreement shall be in writing and shall be deemed to
have been duly given on the date of service, if personally served or sent by
facsimile or electronic mail; on and upon receipt, if delivered to a courier or
mailed by express mail, if sent by courier delivery service or express mail for
next day delivery, or if mailed to the party to whom notice is to be given, by
first class mail, registered, return receipt requested, postage prepaid and
addressed as follows:

 

	
  If to the Company:

  
	
   

  
	
  First Union Real Estate
  Equity and Mortgage Investments

  
	
  7 Bulfinch Place, Suite
  500,

  
	
  P.O. Box 9507,

  
	
  Boston, Massachusetts
  02114

  
	
  Facsimile: (617)
  570-4746

  
	
  Telephone: (617)
  570-4600

  
	
  E-mail:
  asst@wfajericho.com

  
	
   

  
	
  If to Michael Ashner or
  Peter Braverman:

  
	
   

  
	
  Two Jericho Plaza

  
	
  Wing A

  
	
  Jericho, New York 11753

  
	
  Facsimile: (516)
  433-2777

  
	
  Telephone: (516)
  822-0022

  
	
  E-mail:
  asst@wfajericho.com

  

 

11

 

	
  with a copy to:

  
	
   

  
	
  Katten Muchin Zavis
  Rosenman

  
	
  575 Madison Avenue

  
	
  New York, New York
  10022

  
	
  Attention: Mark I.
  Fisher

  
	
  Facsimile: (212)
  940-8776

  
	
  Telephone: (212)
  940-8800

  
	
  E-mail: mark.fisher@kmzr.com

  
	
   

  
	
  If to the Initial
  Purchaser:

  
	
   

  
	
  Perrin Holden &
  Davenport Capital Corp.

  
	
  5 Hanover Square

  
	
  New York, NY 10004

  
	
  Attention: Nelson Braff

  
	
  Facsimile:

  
	
  Telephone: (212) 566-5100

  
	
  E-mail: nbraffphd@aol.com

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  [insert address]

  
	
   

  
	
  If to any Holder, to
  the address set forth on such Holder’s signature page attached hereto, with a
  copy to:

  
	
   

  
	
  Mark Weissler, Esq.

  
	
  Milbank, Tweed, Hadley
  & McCloy LLP

  
	
  1 Chase Manhattan Plaza

  
	
  New York, NY 10005

  
	
  Facsimile: (212)
  822-5446

  
	
  Telephone: (212)
  530-5446

  
	
  E-mail:
  mweissler@milbank.com

  

 

SECTION 5.6      Governing Law.  This Agreement and (unless otherwise
provided) all amendments hereof and waivers and consents hereunder shall be
governed by the internal Laws of the State of New York, without regard to the
conflicts of Law principles thereof which would specify the application of the
Law of another jurisdiction.

 

SECTION 5.7      Headings.  The headings in this Agreement are for
convenience of reference only and shall not constitute a part of this
Agreement, nor shall they affect their meaning, construction or effect.

 

SECTION 5.8      Counterparts.  This Agreement may be executed via facsimile
and in any number of counterparts, each of which shall be deemed to be an
original instrument and all of which together shall constitute one and the same
instrument.

 

12

 

SECTION 5.9     
Further Assurances. 
Each party shall cooperate and take such action as may be reasonably
requested by another party in order to carry out the provisions and purposes of
this Agreement and the transactions contemplated hereby.

 

SECTION 5.10      Remedies.  In the event of a breach or a threatened
breach by any party to this Agreement of its obligations under this Agreement,
any party injured or to be injured by such breach will be entitled to specific
performance of its rights under this Agreement or to injunctive relief, in
addition to being entitled to exercise all rights provided in this Agreement
and granted by Law, it being agreed by the parties that the remedy at Law,
inducing monetary damages, for breach of any such provision will be inadequate
compensation for any loss and that any defense or objection in any action for
specific performance or injunctive relief that a remedy at Law would be
adequate is waived.

 

SECTION 5.11      Jurisdiction.  Each of the Investors and the Company (a)
hereby irrevocably and unconditionally submits to the exclusive jurisdiction of
any state or federal court sitting in New York County, New York for the
purposes of any suit, action or other proceeding arising out of this Agreement
or the subject matter hereof brought by the Company, or any Investor and (b)
hereby waives and agrees not to assert, by way of motion, as a defense, or
otherwise, in any such suit, action or proceeding, any claim that it is not
subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that the suit,
action or proceeding is brought in an inconvenient forum, that the venue of the
suit, action or proceeding is improper or that this Agreement or the subject
matter hereof may not be enforced in or by such court.  If a judgment is obtained, this Section shall
not preclude enforcement thereof in any forum.

 

SECTION 5.12     
Waiver of Jury Trial.  Each of the parties hereto hereby waives all
right to trial by jury in any action or proceeding under, arising out of or
related to this forbearance agreement.

 

[Signature
Page Follows.]

 

13

 

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

 

 

FIRST
UNION REAL ESTATE EQUITY

AND MORTGAGE INVESTMENTS

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

14

 

	
  HALCYON
  STRUCTURED OPPORTUNITIES FUND, L.P.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Steve Mandis

  
	
   

  	
  Title:

  
	
   

  
	
  Address: c/o

  	
  Halcyon Management
  Company

  
	
   

  	
  477 Madison Avenue, 8th
  Floor

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  212-303-9493

  
	
   

  	
  smandis@halcyonllc.com

  
					

 

15

 

	
  FAIRHOLME VENTURES II LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  Bruce Fairholme

  
	
   

  	
  Title:

  
	
   

  
	
  Address:  c/o

  	
  Fairholme Capital
  Management, L.L.C.

  
	
   

  	
  51 John F. Kennedy Parkway

  
	
   

  	
  Short Hills, NJ 07078

  
	
   

  	
  973-379-6557

  
	
   

  	
  bruce@fairholme.net

  
					

 

16

 

	
  HBK FUND L.P.

  
	
   

  
	
  By: HBK Investments L.P., Investment
  Advisor

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:  Authorized
  Signatory

  
	
   

  
	
  Address: c/o

  	
  HBK Investments

  
	
   

  	
  300 Crescent Court,
  Suite 700

  
	
   

  	
  Dallas, TX 75201

  
	
   

  	
  214-758-6132

  
	
   

  	
  jestes@hbk.com

  
					

 

17

 

	
  GOLDMAN SACHS & CO.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  Address: c/o

  	
  Goldman Sachs & Co.

  
	
   

  	
  85 Broad St.

  
	
   

  	
  New York, NY 10004

  
	
   

  	
  212-902-2734

  
	
   

  	
  jessica.beattie@gs.com

  
					

 

18

 

	
  KING STREET CAPITAL, L.P.

  
	
   

  
	
  By:

  	
  King Street Capital
  Management, L.L.C.

  
	
   

  	
  Its Investment Manager

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  Address: c/o

  	
  King Street Capital
  Management

  
	
   

  	
  65 East 55th Street,
  30th Floor

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  212-812-3109

  
	
   

  	
  mpaige@kingstreet.com

  
					

 

19

 

	
  BASSO
  MULTI-STRATEGY HOLDING FUND LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Howard Fischer

  
	
   

  	
  Title:

  
	
   

  
	
  Address: c/o

  	
  Basso Capital
  Management

  
	
   

  	
  1266 East Main Street,
  4th Floor

  
	
   

  	
  Stamford, CT 06902

  
	
   

  	
  203-352-6120

  
	
   

  	
  hfischer@bassocap.com

  
					

 

20

 

	
  KIMCO REALTY CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: David Henry

  
	
   

  	
  Title:

  
	
   

  
	
  Address: c/o

  	
  Kimco Realty
  Corporation

  
	
   

  	
  3333 New Hyde Park Road

  
	
   

  	
  New Hyde Park, NY 11042

  
	
   

  	
  516-869-7166

  
	
   

  	
  dhenry@kimcorealty.com

  
					

 

21

 

	
   

  	
   

  
	
  Peter Braverman

  

 

22

 

	
   

  	
   

  
	
  Michael Ashner

  

 

23Exhibit 10.1

 

FLEETWOOD ENTERPRISES, INC.

 

2005 DEFERRED COMPENSATION PLAN

 

 

EFFECTIVE JANUARY 1, 2005

 

 

FLEETWOOD ENTERPRISES, INC.

2005 DEFERRED COMPENSATION PLAN

 

WHEREAS, Fleetwood Enterprises, Inc. (the “Company”) previously established
the Fleetwood Enterprises, Inc. Deferred Compensation Plan, the Fleetwood
Enterprises, Inc. Supplemental Benefit Plan and the Fleetwood Enterprises, Inc.
Benefit Restoration Plan (the “Fleetwood Plans”) to provide deferred
compensation benefits for a select group of management and highly compensated
employees;

 

WHEREAS, the Company froze the Fleetwood Plans, each effective December 31,
2004;

 

WHEREAS, the Company desires to establish an unfunded plan to provide benefits
to a select group of management or highly compensated employees within the
meaning of Section 201(2) of the Employee Retirement Income Security Act
of 1974, as amended; with respect to amounts of compensation deferred on or
after January 1, 2005; and

 

WHEREAS, the Plan is intended to meet the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended.

 

NOW, THEREFORE, the Company hereby adopts the Fleetwood
Enterprises, Inc. 2005 Deferred Compensation Plan, effective January 1, 2005,
with respect to any amounts of compensation deferred on or after January 1,
2005, as follows:

 

i

 

TABLE OF CONTENTS

 

FLEETWOOD ENTERPRISES, INC.

2005 DEFERRED COMPENSATION PLAN

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  “Base Rate”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  “Board”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  “Change in Control”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4

  	
  “Code”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.5

  	
  “Committee”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.6

  	
  “Company”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.7

  	
  “Company Discretionary
  Accruals”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.8

  	
  “Deferred Compensation”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.9

  	
  “Disabled”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.10

  	
  “ERISA”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.11

  	
  “Fleetwood”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.12

  	
  “Key Employee”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.13

  	
  “Participant”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.14

  	
  “Plan”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.15

  	
  “Plan Quarter”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.16

  	
  “Plan Year”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.17

  	
  “Regulation”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.18

  	
  “Restricted Contribution
  Accruals”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.19

  	
  “Retirement”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.20

  	
  “Retirement Age”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.21

  	
  “Retirement Plan”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.22

  	
  “Subsidiary”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.23

  	
  “Unforeseeable Emergency”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  PLAN ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  The Committee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Powers of the Committee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Organization and Operation of
  the Committee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  Reliance on Reports

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Records and Reports

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Payment of Expense

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  Indemnification

  	
   

  

 

i

 

	
   

  	
  2.8

  	
   

  	
  Standard of Review

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  ELIGIBILITY AND
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Eligibility

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Duration of Participation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  ACCRUALS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Restricted Contribution
  Accruals

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Company Discretionary Accruals

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Vesting

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  BOOKKEEPING ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  UNSECURED OBLIGATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  PAYMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Distributable Events

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  Forms
  of Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  Forfeiture

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Death

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  DISSOLUTION AND OTHER
  EVENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Dissolution or Change in
  Control of Fleetwood

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2

  	
  Subsidiary Reorganization

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  CLAIM
  TO DEFERRED COMPENSATION AND EMPLOYEE RIGHTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  NONTRANSFERABILITY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  COURT
  ORDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  RELATIONSHIP TO
  OTHER BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  EFFECT ON
  EMPLOYMENT AGREEMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  REQUIRED APPROVALS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  AMENDMENT AND TERMINATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  AMENDMENT OF
  RETIREMENT PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  DE MINIMUS PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  INCOMPETENCY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  NOTICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  GOVERNING
  LAW

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  PRONOUNS

  	
   

  

 

ii

 

FLEETWOOD ENTERPRISES, INC.

2005 DEFERRED COMPENSATION PLAN

 

(EFFECTIVE JANUARY 1, 2005)

 

1.                                      DEFINITIONS.

 

The
following terms shall have the respective meanings set forth below:

 

1.1                                 “Base Rate” 
means the rate of interest selected by the Committee in its sole and
absolute discretion.  Notwithstanding the
foregoing, upon and after a Change in Control, the “Base Rate” shall be the
greater of the base or prime rate charged from time to time by the Bank of
America, NT&SA or the rate in use immediately before the Change in Control.  The “Base Rate” shall be adjusted quarterly
as of the last day of each Plan Quarter based on the base rate in effect on the
last business day of such Plan Quarter.

 

1.2                                 “Board” 
means the Board of Directors of Fleetwood.

 

1.3                                 “Change in Control”  means the first to occur of any of the
following events:

 

 (a)  the acquisition (other than from the Company)
by any person, entity or “group,” within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) (excluding, for this purpose, Fleetwood or its subsidiaries, or any
executive benefit plan of Fleetwood or its subsidiaries which acquires
beneficial ownership of voting securities of Fleetwood), of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of twenty-five percent (25%) or more of either the then-outstanding shares of
common stock or the combined voting power of Fleetwood’s then-outstanding
voting securities entitled to vote generally in the election of directors; or

 

(b) 
individuals who, as of the date hereof, constitute the Board (as of the
date hereof the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by
Fleetwood’s stockholders, is or was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
Directors of Fleetwood) shall be, considered as though such person were a
member of the Incumbent Board; or

 

(c)  approval
by the stockholders of Fleetwood of a reorganization, merger or consolidation
with any other person, entity or corporation, other than

 

(1)  a merger
or consolidation which would result in the voting securities of Fleetwood
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of another
entity) more than fifty percent (50%) of the 

 

1

 

combined voting power of the voting securities of Fleetwood or such
other entity outstanding immediately after such merger or consolidation, or

 

(2) a merger or consolidation effected to implement
a recapitalization of Fleetwood (or similar transaction) in which no person
acquires twenty-five percent (25%) or more of the combined voting power of
Fleetwood’s then outstanding voting securities; or

 

(d)  approval
by the stockholders of Fleetwood of a plan of complete liquidation of Fleetwood
or an agreement for the sale or other disposition by Fleetwood of all or
substantially all of the Company’s assets.

 

1.4                                 “Code” 
means the Internal Revenue Code of 1986, as it may be amended from time
to time.

 

1.5                                 “Committee” 
means a committee appointed by the President of Fleetwood.  The Committee shall consist of not less than
two members.  A member of the Committee
may also be a Participant under the Plan, but any Committee member who is such
a member shall not participate in any rulings by the Committee which relate to
his own distributions or elections or which are otherwise particularly
applicable to his own participation.

 

1.6                                 “Company” 
means Fleetwood and its Subsidiaries.

 

1.7                                 “Company
Discretionary Accruals”  means amounts
that are credited to a Participant’s account under Section 4.2.

 

1.8                                 “Deferred
Compensation”  means the total amounts credited to a
Participant’s account under the Plan as either a Company Discretionary Accrual
or a Restricted Contribution Accrual.

 

1.9                                 “Disabled” 
means the Participant (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (ii) is, by reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees
of the Participant’s employer.

 

1.10                           “ERISA” 
means Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.

 

1.11                           “Fleetwood” 
means Fleetwood Enterprises, Inc., a Delaware corporation.

 

1.12                           “Key Employee” 
means any Employee or former Employee (including any deceased Employee)
who at any time during the Plan Year that includes the determination date was
an officer of the Employer having Compensation greater than $130,000 (as
adjusted under 

 

2

 

Code Section 416(i)(1)), a five-percent owner of
the Employer, or a 1-percent owner of the Employer having Compensation of more
than $150,000.  For this purpose,
Compensation means compensation within the meaning of Code
section 415(c)(3).  The
determination of who is a Key Employee will be made in accordance with Code
Section 409A and Section 416(i)(1) (without regard to paragraph (5) thereof)
and the applicable regulations and other guidance of general applicability issued
thereunder.

 

1.13                           “Participant” 
means a person described in Section 3.

 

1.14                           “Plan” 
means the Fleetwood Enterprises, Inc. 2005 Deferred Compensation Plan,
as it may be amended from time to time.

 

1.15                           “Plan Quarter” 
means the applicable quarters of the calendar year, ending respectively
on March 31, June 30, September 30, and December 31.

 

1.16                           “Plan Year” 
means the calendar year.

 

1.17                           “Regulation” 
means the Internal Revenue Service regulation specified, as it may be
changed from time to time.

 

1.18                           “Restricted Contribution Accruals”  means the Company contributions which would
have been allocated to the account of the Participant in the Retirement Plan
for the Plan Year but for the limitations imposed by Sections 415 and 417 of
the Code.

 

1.19                           “Retirement” 
means the voluntary or involuntary termination of the Participant’s
employment for reasons other than death or disability, occurring at or after
the time when the Participant has attained Retirement Age.

 

1.20                           “Retirement Age”  means age 65.

 

1.21                           “Retirement Plan”  means the Fleetwood 401(k) Plan as now in
effect or hereafter amended.

 

1.22                           “Subsidiary” 
means such corporations, fifty percent (50%) or more of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by
Subsidiaries that have been designated in writing by the Committee to be
Subsidiaries for this purpose.

 

1.23                           “Unforeseeable Emergency”  means a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in section 152(a) of the Code)
of the Participant, loss of the Participant’s property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.

 

3

 

2.                                      PLAN
ADMINISTRATION.

 

2.1                                 The
Committee

 

The
Committee shall administer the Plan in accordance with its terms.

 

2.2                                 Powers
of the Committee

 

The
Committee shall have full power and authority to adopt and revise such rules
and procedures as it shall deem necessary for the administration of the Plan.  The decision of the Committee with respect to
any question arising under this Plan shall be final, conclusive and binding on
all persons.

 

2.3                                 Organization
and Operation of the Committee

 

The
Committee shall act by a majority of its members at the time in office, and
such action may be taken either by a vote at a meeting or in writing without a
meeting.  The Committee may authorize any
one or more of its members to execute any document or documents on behalf of
the Committee.  The Committee may appoint
such accountants, counsel, specialists, and other persons as it deems necessary
or desirable in connection with the administration of this Plan.

 

2.4                                 Reliance
on Reports

 

Each
member of the Committee and each member of the Board shall be fully justified
in relying or acting in good faith upon any opinion or report made by the
independent public accountants of the Company and upon any other opinions,
reports or information furnished in connection with the Plan by any accountant,
counsel, or other specialist (including financial officers of the Company,
whether or not such persons may be Participants under the Plan).  In no event shall any person who is or shall
have been a member of the Committee or of the Board be liable for any
determination made or other action taken or any omission to act in reliance
upon any such opinion, report or information or for any action, including the furnishing
of information, taken or failure to act, if in good faith.

 

2.5                                 Records
and Reports

 

The
Committee shall keep a record of all its proceedings and acts, and shall keep
all such books of accounts, records, and other data as may be necessary for
proper administration of the Plan.

 

2.6                                 Payment
of Expense

 

Unless
otherwise determined by the Board, the members of the Committee shall serve
without compensation for services as such, but all expenses of the Committee
shall be paid by the Company.  Such expenses
shall include any expenses incident to the functioning of the Committee,
including, but not limited to, fees of accountants, counsel, and other
specialists, and other costs of administering the Plan.

 

2.7                                 Indemnification

 

Each
person who is or shall have been a member of the Committee or of the Board
shall be indemnified and held harmless by Fleetwood against and from any loss,
cost, liability, or 

 

4

 

expense
that may be imposed upon or reasonably incurred by him in connection with or
resulting from any claim, action, suit, or proceeding to which he may be a
party or in which he may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid by him in
settlement thereof, with the approval of Fleetwood, or paid by him in
satisfaction of judgment in any such action, suit, or proceeding against him,
provided he shall give Fleetwood an opportunity, at its own expense, to handle
and defend it on his own behalf.  The
foregoing rights of indemnification shall not be exclusive of any other rights
of indemnification to which such persons may be entitled under the certificate
of incorporation or bylaws of Fleetwood, as a matter of law, or otherwise, or
any power that Fleetwood may have to indemnify them or hold them harmless.

 

2.8                                 Standard
of Review

 

The
Committee has full and absolute discretion in the exercise of each and every
aspect of the rights, power, authority and duties retained or granted it under
the Plan, including without limitation, the authority to determine all facts,
to interpret this Plan, to apply the terms of this Plan to the facts
determined, to make decisions based upon those facts and to make any and all
other decisions required of it by this Plan, such as the right to benefits, the
correct amount and form of benefits, the determination of any appeal, the
review and correction of the actions of any prior administrative committee, and
the other rights, powers, authority and duties specified in this paragraph and
elsewhere in this Plan.  Notwithstanding
any provision of law, or any explicit or implicit provision of this document,
any action taken, or finding, interpretation, ruling or decision made by the
Committee in the exercise of any of its rights, powers, authority or duties
under this Plan shall be final and conclusive as to all parties, including
without limitation all Participants, former Participants and beneficiaries,
regardless of whether the Committee or one or more of its members may have an
actual or potential conflict of interest with respect to the subject matter of
the action, finding, interpretation, ruling or decision.  No final action, finding, interpretation,
ruling or decision of the Committee shall be subject to de novo review in any
judicial proceeding.  No final action,
finding, interpretation, ruling or decision of the Committee may be set aside
unless it is held to have been arbitrary and capricious by a final judgment of
a court having jurisdiction with respect to the issue.

 

3.                                      ELIGIBILITY AND
PARTICIPATION.

 

3.1                                 Eligibility

 

The
Committee shall designate these employees eligible to participate in this
Plan.  Subject to the provisions of
Section 14, once a person has been selected as a Participant under this Plan
with respect to a Plan Year, such person shall remain a Participant for such
Plan Year until such Participant’s participation is terminated pursuant to
Section 3.2.

 

3.2                                 Duration
of Participation

 

A
Participant shall cease to be a Participant upon the earliest of such
Participant’s (i) death, (ii) disability, (iii) Retirement,
(iv) termination of employment or (v) receipt of the full amount of
Deferred Compensation, if any, payable to such Participant under this Plan.  The transfer of a Participant during any Plan
Year of his employment between Fleetwood and any 

 

5

 

Subsidiary,
or between Subsidiaries, shall not affect any election of such Participant made
prior to the date of such transfer.

 

4.                                      ACCRUALS

 

4.1                                 Restricted
Contribution Accruals.

 

The
account of each Participant shall be credited with amounts equal to the Company
allocation the Participant would have received in the Retirement Plan but for
the limitations of Sections 415 and 401(a)(17) of the Code; plus the
interest, if any, computed under Section 4.3.

 

4.2                                 Company
Discretionary Accruals.

 

The
Company, in its sole discretion, may at any time credit the account of any
individual Participant with such amount as it shall determine.

 

4.3                                 Interest

 

Amounts
credited under this Plan shall bear interest at a rate per annum equal to the
lesser of

 

(a)                                  the Base Rate computed pursuant to
Section 1.1, or

 

(b)                                 the maximum rate permitted under
California law.

 

Interest
shall be credited and compounded quarterly as of the end of each Plan
Quarter.  Participants’ accounts shall be
accurately and timely credited with interest earned hereunder.

 

5.                                      Vesting

 

A
Participant shall have a 100 percent nonforfeitable interest in his Company
Discretionary Accruals under the Plan at all times.  A Participant will also have a 100 percent
nonforfeitable interest in any increase in the Company Discretionary Accruals
as a result of the crediting of interest in accordance with Section 4.3.

 

A
Participant’s vested percentage of the amounts credited to his Restricted
Contribution Accruals Account under this Plan shall be the same as his vested
percentage of amounts credited to his account under the Retirement Plan.

 

6.                                      BOOKKEEPING
ACCOUNTS.

 

A
separate and distinct unfunded, unsecured account shall be established and
maintained by the Company on its books for the Participant.  Amounts accrued by the Company pursuant to
this Plan shall be credited to such Participant’s account as the accruals
occur.  Amounts accrued under this Plan
shall bear interest computed in accordance with Section 4.3.  Interest shall be credited and compounded
quarterly as of the end of each Plan Quarter.

 

6

 

7.                                      UNSECURED
OBLIGATION.

 

Participants
under this Plan shall not have any interest in any fund or specific assets of
the Company by reason of this Plan.  No
trust fund shall be created in connection with the Plan, and there shall be no
funding of amounts which may become or are payable to any Participant;
provided, that benefits under this Plan may be funded in whole or in part
through the Fleetwood Enterprises Master Deferred Compensation Trust, a grantor
trust described in Section 671 of the Code; provided further, that upon a
Change in Control, the Company must immediately contribute an amount, if any,
to such trust sufficient so that all benefits earned and credited hereunder
through such Change shall be fully funded through such trust.  A Participant’s rights under such trust shall
be governed solely by the instrument or instruments governing such trust.

 

8.                                      PAYMENT

 

8.1                                 Distributable
Events

 

A
distribution of the vested portion of the amount of Deferred Compensation
credited to a Participant’s account under this Plan, may be made or may
commence being made following the occurrence of any of the following events:

 

(a)                                  separation from service (as determined in
accordance with the Regulations under Section 409A of the Code);

 

(b)                                 the date the Participant becomes
Disabled;

 

(c)                                  the date of the Participant’s death;

 

(d)                                 to the extent provided by the Regulations
under Section 409A of the Code, a Change in Control, or

 

(e)                                  the occurrence of an Unforeseeable
Emergency.

 

In
the case of any Key Employee, distributions may not be made before the date
which is 6 months after the date of separation from service (or, if earlier,
the date of death of the employee).

 

A
distribution on account of an Unforeseeable Emergency is permitted only if, as
determined under Regulations promulgated under Section 409A of the Code, the
amounts distributed with respect to an emergency do not exceed the amounts
necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of
the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship).

 

8.2                                 Forms of Payment

 

The
vested portion of the amount of Deferred Compensation credited to a
Participant’s 

 

7

 

account
under this Plan, shall, subject to the provisions of Sections 8.1, 5 and
18, be paid in accordance with the written election of a Participant.

 

(a)                                  In such election, the Participant shall
designate either one or a combination of the following payment options:

 

(i)                                     a lump sum upon employment termination
with the Company, or in the first week of January of a designated year (1st,
2nd, 3rd, etc.) following termination;

 

(ii)                                  consecutive annual installments of not
less than $10,000 each, such installments to commence in the first week of
January of a designated year (1st, 2nd, 3rd,
etc.) following employment termination with the Company and payable over a
period not to exceed 20 years from the date of employment termination; or

 

(iii)                               a lump sum amount of less than the
Participant’s entire benefit, in accordance with (i) above, followed by
installment payments of the balance in accordance with (ii), above.

 

Notwithstanding the provisions of this Section
8.2(a), without the prior written consent of the Committee, the receipt of
amounts deferred under the Plan may not be deferred to a date which is later
than twenty (20) years following the end of the calendar year which includes
the Participant’s Retirement Age or Retirement, whichever is later.

 

(b)                                 A Participant may modify any election at
any time that is no later than 12 months before the date on which such amounts
were scheduled to be paid or commence to be paid under the Participant’s or
former Participant’s original election, and such election change will not be
effective until 12 months after the date of the election change.  In addition, any such election change may not
provide for a payment or commencement of payment that is earlier than 5 years
after the date on which such payment would otherwise have been made.

 

(c)                                  If no separate election is made
hereunder, payment to the Participant shall be made in a lump sum in January of
the year following termination of employment with the Company.

 

8.3                                 Forfeiture

 

To
the extent that a percentage of the Participant’s account or accounts in the
Retirement Plan attributable to the Company contributions is forfeited because
of termination of employment, an equal percentage of the Participant’s
Restricted Contribution Accruals under this Plan shall be forfeited, subject to
provisions of restoration which may be provided by the Retirement Plan.

 

8

 

8.4                                 Death

 

Upon
the death of a Participant, all funds will be paid to the Participant’s
designated beneficiary or beneficiaries in the form selected by the Participant
unless the beneficiary and the Committee agree to payment in an immediate lump
sum.

 

A
Participant may designate a beneficiary or beneficiaries by means of a written
election on a form authorized for such purpose by the Committee.  A Participant may change such election at any
time on a form authorized for such purpose by the Committee.  If a Participant does not make an election in
accordance with this Section and has previously designated a beneficiary or
beneficiaries under the Participant’s Retirement Plan, then that designation
shall be effective for purposes of this Plan.

 

9.                                      DISSOLUTION AND
OTHER EVENTS.

 

9.1                                 Dissolution
or Change in Control of Fleetwood.

 

(a)                                  To the extent permitted under Regulations
promulgated under Section 409A of the Code, if Fleetwood is liquidated or
dissolved, then with respect to any amounts which may then or thereafter become
payable to a Participant or a Participant’s beneficiary or successors under
Section 8 of this Plan, the Company shall pay such amount promptly in
cash, without regard to any elections with respect to deferrals or installments
which the Participant may have in effect. 
Payment shall be made upon the earlier to occur of (i) a
liquidation or dissolution with respect to the Company or (ii) a
determination made by the Board in the exercise of its discretion that such
liquidation or dissolution is imminent.

 

(b)                                 The occurrence of a Change in Control
shall not affect the payment of amounts hereunder, and all benefits hereunder
shall remain deferred and shall be paid in accordance with Participant
elections as specified in Section 8 hereof.  A Participant shall, however, be indemnified
and held harmless for any costs incurred, including without limitation
attorneys’ fees, in the course of and in order to receive payments of amounts
to which he or she becomes entitled after a Change in Control.

 

9.2                                 Subsidiary
Reorganization

 

If
the assets of one Subsidiary are transferred to another Subsidiary by
merger,  consolidation, transfer of
assets, transfer of capital stock or otherwise, the transferee Subsidiary shall
assume amounts which may then or thereafter become payable by the transferor
Subsidiary to a Participant or a Participant’s beneficiaries or successors
under the provisions of this Plan.  For
purposes of this Section, a Subsidiary may include Fleetwood.

 

10.                               CLAIM
TO DEFERRED COMPENSATION AND EMPLOYEE RIGHTS.

 

No
employee or other person shall have any claim or right to become a Participant
under this Plan except as provided herein. 
Neither this Plan nor any action taken hereunder shall be construed as
giving any employee any right to be retained in the employ of the Company.  Benefits shall be paid in accordance with the
provisions of this instrument.  If and to
the extent benefits are not automatically paid hereunder, the Participant, or a
Beneficiary or any other person claiming through the Participant, shall make a
written request for benefits under this Plan. 

 

9

 

This
written claim shall be mailed or delivered to the Committee.  Such claim shall be reviewed by the Committee
or its delegate.

 

(a)                                  If the claim is denied, in whole or in
part, the Committee or its delegate shall provide a written notice within
ninety (90) days setting forth the specific reasons for denial, and any
additional material or information necessary to perfect the claim, and an
explanation of why such material or information is necessary, and appropriate
information and explanation of the steps to be taken if a review of the denial
is desired.

 

(b)                                 If the claim is denied and a review by
the full Committee is desired, the Participant (or Beneficiary) shall notify
the Committee or its delegate in writing within sixty (60) days of the denial
(a claim shall be deemed denied if the Committee does not take any action
within the aforesaid ninety (90) day period). 
In requesting a review, the Participant or his Beneficiary may request a
review of the Plan document or other pertinent documents with regard to the
Plan, may submit any written issues and comments, may request an extension of
time for such written submission of issues and comments, and may request that a
hearing be held, but the decision to hold a hearing shall be within the sole
discretion of the Committee.

 

(c)                                  The decision on the review of the denied
claim shall be rendered by the Committee within sixty (60) days after the
receipt of the request for review (if no hearing is held) or within sixty (60)
days after the hearing if one is held. 
The decision shall be written and shall state the specific reasons for
the decision, including reference to specific provisions of the Plan on which
the decision is based.

 

11.                               NONTRANSFERABILITY.

 

Except
as may be permitted by the Retirement Plan or in order to pay death benefits as
provided hereunder, a person’s rights and interest under this Plan, including
amounts payable, may not be assigned, pledged, transferred or otherwise
hypothecated.

 

12.                               COURT ORDERS.

 

Notwithstanding
any other provisions hereof, the Committee may respond as it deems appropriate
in its sole and absolute discretion to any court ordered payment (including
without limitation those pertaining to child support or alimony).  Appropriate responses may include, without
limitation, affording the non-Participant spouse the same rights enjoyed by the
Participant spouse to modify a previously elected or determined payment format,
subject to the provisions hereof.

 

13.                               RELATIONSHIP
TO OTHER BENEFITS.

 

No
payment under the Plan shall be taken into account for determining any benefits
under any pension, retirement, profit sharing, group insurance or other benefit
plan of the Company.

 

10

 

14.                               EFFECT
ON EMPLOYMENT AGREEMENTS.

 

By
consenting to the terms of this Plan each Participant agrees that his
employment agreement with the Company, as in effect from time to time and whether
executed prior to or after becoming a Participant under the Plan, shall be
supplemented and amended to the extent necessary to be consistent with the
Plan.  In the event of any conflict
between the terms of a Participant’s employment agreement with the Company and
the terms of this Plan, the terms of this Plan shall prevail.

 

15.                               REQUIRED APPROVALS.

 

All
rights and obligations of Participants and the Company under this Plan are
specifically contingent upon the obtaining of all necessary regulatory and other
approvals and compliance with all applicable federal, state and local laws,
ordinances, rules and regulations. 
Specifically, without limiting the foregoing, each Participant by
participating in this Plan and the Company by accommodating such participation
agree that the sale of any securities which are the subject of this Plan has
not been qualified with the Commissioner of Corporations of the State of
California and the issuance of such securities and the payment or receipt of
the consideration therefore prior to such qualification is unlawful.  The rights of all parties to this Plan
(including all Participants and the Company or its Subsidiaries) are expressly
conditioned upon such qualification being obtained.

 

16.                               AMENDMENT AND
TERMINATION.

 

The
Board may terminate this Plan or modify or amend this Plan in such respects as
it shall deem advisable.  No termination
or amendment of the Plan, however, shall reduce the amount of the benefit which
a person who is a Participant at the time such termination or amendment occurs
has already become entitled to.

 

No
amendment of the Plan shall be construed to apply to any amounts deferred on or
before December 31, 2004 under the Fleetwood Enterprises, Inc. Deferred
Compensation (Amended and Restated Effective April 1, 1995), as amended
thereafter, the Fleetwood Enterprises, Inc. Supplemental Benefit Plan (Amended
and Restated Effective April 1, 1995), as amended thereafter or the Fleetwood
Enterprises, Inc. Benefit Restoration Plan (Amended and Restated Effective
April 1, 1995), as amended thereafter.

 

17.                               AMENDMENT OF
RETIREMENT PLAN.

 

In
the event that any provision of the Retirement Plan is amended, said amendment
to the extent not in direct conflict with express provisions of this Plan shall
be equally applicable to the payment of benefits under this Plan.

 

18.                               DE MINIMUS
PAYMENTS.

 

Notwithstanding
any other provision of this Plan or the Retirement Plan to the contrary, in the
event that amounts become payable to a Participant or to his or her successor
under the terms of this Plan and the present value of such amounts is less than
$10,000.00, the Committee may, at its sole discretion, direct the present value
of such amounts to be paid in a lump sum cash 

 

11

 

payment.

 

19.                               INCOMPETENCY.

 

Every
person receiving or claiming a benefit under this Plan shall be conclusively
presumed to be mentally competent until the date on which the Committee
receives a written notice, in form and manner acceptable to the Committee, that
such person is incompetent and that a guardian, conservator or other person
legally vested with the care of his or her estate has been appointed; provided,
however, that if the Committee shall determine in its sole discretion that any
person to whom a benefit is payable under this Plan is unable to care for his
or her affairs because of incompetency, any payments due (unless a prior claim
therefore shall have been made by a duly appointed legal representative may be
paid to the spouse, a child, a parent, a brother or sister of such person, or
to any person or institution deemed by the Committee to have incurred expenses
for such person otherwise entitled to payment. 
In the event a guardian or conservator of the estate of any person
receiving or claiming benefits under this Plan shall be appointed by a court of
competent jurisdiction, payment shall be made to such guardian or conservator
provided that proper proof of appointment and continuing qualification is
furnished in a form and manner acceptable to the Committee.  Any payment made in accordance with this
section shall be a complete discharge of any liability therefor under this
Plan.

 

20.                               NOTICE.

 

All
payment elections by a Participant and the designation of any beneficiary or
beneficiaries shall be made on forms supplied or approved by the Committee. Any
other notice or other communication required or permitted by this Plan to be
given or accepted by a Participant, a Participant’s successors or
beneficiaries, the Committee or the Company, must be in writing and may be
given or may be served by depositing the same in the United States mail,
addressed to the party to be notified, postage prepaid and registered or
certified with return receipt requested or by delivering the same in person to
such party.  All notices to a Participant
or to his or her successors or beneficiaries shall be delivered to the last
known address or addresses on file with the Company.  Notices to the Committee or to the Company
and beneficiary designations shall be delivered to the following person and
address:

 

Fleetwood Enterprises, Inc.

3125 Myers Street

Riverside, California  92523

Attention:  Treasurer

 

or
to such other address and person as the Committee, through two duly elected
officers, shall specify.

 

21.                               GOVERNING LAW.

 

This
Plan shall be governed by and construed in accordance with the laws of the
State of California except to the extent preempted by ERISA.

 

12

 

22.                               PRONOUNS.

 

The
masculine pronoun shall include the feminine and the singular pronoun shall
include the plural and vice versa, unless the context clearly indicates
otherwise.

 

13

 

IN WITNESS WHEREOF, Boyd R. Plowman, Executive Vice President
and Chief Financial Officer has caused this Agreement to be executed this 17th
day of December 2004, to be effective the 1st day of
January 2005.

 

 

	
   

  	
  FLEETWOOD
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Boyd R. Plowman

  	
   

  

 

1

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