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                                                                    EXHIBIT 10.6

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                          Individual Exchange Agreement
                                  Pertaining To
    Konover Property Trust, Inc. (Formerly FAC Realty, Inc.) 1996 Restricted
                                   Stock Plan
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This Agreement is entered into as of this [date] day of [Month], [Year] by and
between [FirstName] [Lastname]  ("Recipient") and Konover Property Trust, Inc.
(formerly FAC Realty, Inc.) ("Corporation").

WHEREAS, pursuant to the Konover Property Trust, Inc. (formerly FAC Realty,
Inc.) 1996 Restricted Stock Plan, as amended ("Plan"), the Recipient has
received or will be granted shares of restricted stock as shown in Agreement
Supplement A. Under this Agreement, shares granted under the Plan shall be
referred to as "Restricted Stock."

WHEREAS, under the terms of the Plan, the Restricted Stock currently granted and
that to be granted in the future is subject to vesting provisions found in
section 6 of the Plan.

WHEREAS, Recipient desires to exchange, for the Repurchase Rights established
pursuant to the terms and conditions of this Agreement, the right to receive
(along with all other rights appurtenant thereto) the Restricted Stock reflected
in Agreement Supplement A.

WHEREAS, the Corporation desires to exchange the Repurchase Rights for the
return to the Corporation of Recipient's Restricted Stock granted pursuant to
the Plan.

                           ------- WITNESSETH -------

NOW, THEREFORE, in consideration of the mutual promises contained herein, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereby agree as follows.

1.    EXCHANGE RESTRICTED STOCK FOR REPURCHASE RIGHTS. Recipient hereby agrees
      to exchange, for the Repurchase Rights and Dividend Equivalents described
      in this Agreement, his or her Restricted Stock (including the right to
      receive dividends thereon and the right to vote such shares). Corporation,
      in turn, agrees to exchange the Repurchase Rights for the Restricted
      Stock.

      For each share of Restricted Stock granted to the Recipient and exchanged
      under this Agreement, Recipient shall receive one Repurchase Right. Each
      Repurchase Right shall entitle Recipient to acquire from the Corporation,
      in accordance with the terms and conditions of this Agreement, a share of
      Stock. For purposes of this Agreement, the terms "Shares" and "Stock"
      shall refer to Konover Property Trust, Inc. (formerly FAC Realty, Inc.)
      common stock granted to Recipient in the form of Restricted Stock.

      A.    Application to Restricted Stock Outstanding as of the Date of This
            ------------------------------------------------------------------
            Agreement. As of the date of this Agreement, Recipient has been
            ---------
            granted Restricted Stock pursuant to the Plan. Some or all of the
            Restricted Stock granted to Recipient may not currently be vested in
            accordance with the terms of section 6 of the Plan. To the extent
            that any of this Restricted Stock granted as of the date of this
            Agreement is not currently 100% vested, then the nonvested

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            Restricted Stock to which the Recipient desires this Agreement to
            apply to will be reflected in Section I of Agreement Supplement A
            ("Supplement A"), which shall be included with and made a part of
            this Agreement.

      B.    Application to Restricted Stock Granted After the Date of This
            --------------------------------------------------------------
            Agreement. Following the date of this Agreement, Recipient may be
            ---------
            granted additional Restricted Stock in accordance with the Plan.
            This Agreement shall automatically apply to the grant of the
            additional Restricted Stock to Recipient, and Section II of
            Supplement A shall be amended to reflect the additional grant.
            Recipient's acknowledgment signature shall also be obtained and
            included on Section II of Supplement A with respect to such Stock.

2.    CREATION AND TREATMENT OF DIVIDEND EQUIVALENTS. Whenever any cash dividend
      is declared on the type and class of shares subject to Repurchase Rights,
      Corporation shall calculate a Dividend Equivalent equal to the amount of
      cash dividends which would have been payable to Recipient had the
      Restricted Stock subject to this Agreement actually been issued and
      outstanding. Such Dividend Equivalent shall be payable to Recipient on or
      about the time Corporation makes its payments to holders of issued and
      outstanding shares.

3.    ADJUSTMENT IN NUMBER OR FORM OF REPURCHASE RIGHTS. If any of the events
      enumerated in section 11(a) of the Plan occurs with respect to the type
      and class of shares subject to Repurchase Rights, then Corporation may
      make such adjustments in the terms, conditions or restrictions of this
      Agreement (and the Repurchase Rights subject to this Agreement) as it
      shall deem equitable and just.

4.    EXERCISE OF REPURCHASE RIGHTS. In accordance with the provisions of this
      Paragraph 4, Recipient may exercise a Repurchase Right at any time during
      the period: (i) beginning the date the Restricted Stock subject to the
      Repurchase Right becomes vested under section 6 of the Plan (or, if later,
      on the date any restrictions on sale under Section 16(b) the 1934 Exchange
      Act, as amended, expire), and (ii) ending on the date 15 years from the
      date under item (i) above. This period shall be referred to in this
      Agreement as the "Exercise Period".

      A Repurchase Right shall expire at the end of its Exercise Period and may
      not be exercised after the end of such Period. Upon expiration, the
      Recipient, and any person claiming benefits through the Participant, will
      lose all rights with respect to such Repurchase Right.

      A.    Procedure. Subject to the requirements of this Paragraph 4, a
            ---------
            Recipient may exercise a Repurchase Right by giving written notice
            to the Corporation (using a Repurchase Right Exercise Form supplied
            by the Corporation) and tendering, on or about the Exercise Date,
            full payment of the Exercise Price by check or other means
            acceptable to the Corporation.

      B.    Minimum Repurchase Right Exercise Requirements. The minimum number
            ----------------------------------------------
            of Repurchase Rights allowed to be exercised at any one time by
            Recipient shall be equal to that vested number of shares of
            Restricted Stock which are part of a single block of such Stock
            granted to Recipient on a particular date under the Plan. Restricted
            Stock granted for different reasons under the Plan (e.g., in lieu

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            of salary increases, bonuses or as part of the Corporation's long
            term incentive plan) will each be considered a separate block of
            Restricted Stock for purposes of these minimum exercise
            requirements.

      C.    Restrictions On Exercise. The following shall apply to any exercise
            ------------------------
            by a Recipient of a Repurchase Right under this Agreement.

            (1)   Required Approvals. In the event that the exercise of any
                  ------------------
                  Repurchase Right requires the prior listing, registration,
                  qualification, consent or approval of any securities exchange,
                  state or federal agency or other governmental regulatory body,
                  then the Repurchase Right may not be exercised in whole or in
                  part until such approvals have been obtained or such
                  requirements have been met.

            (2)   Stock Legend. Each Recipient exercising a Repurchase Right
                  ------------
                  under this Agreement shall represent to and agree with the
                  Corporation that the Recipient: (i) is acquiring such Shares
                  as an investment and not with a present intention of
                  distribution or resale, and (ii) agrees to have placed upon
                  the certificates representing the Shares a legend setting
                  forth these representations or a reference thereto. Such
                  Shares shall be transferable thereafter only if the proposed
                  transfer shall be permissible under the Plan and this
                  Agreement and if, in the opinion of counsel for the
                  Corporation, such transfer shall at such time be in compliance
                  with all applicable federal and state securities laws and
                  regulations.

      D.    Tender of Payment Upon Exercise of Repurchase Right. The exercise of
            ---------------------------------------------------
            any Repurchase Right shall not be deemed complete and the Recipient
            shall have no rights, interests or privileges as an owner of the
            Stock subject to the Repurchase Right until the Recipient tenders
            payment of the Repurchase Right's Exercise Price in a manner
            permitted under this Agreement.

      E.    Delivery of Stock. No later than ten business days after all of the
            -----------------
            requirements for the exercise of a Repurchase Right under the
            provisions of this Paragraph have been met, Corporation shall
            deliver or cause to be delivered to the Recipient the Shares to
            which the exercised Repurchase Right related.

            The Shares shall be delivered free and clear of all restrictions,
            security interests (whether or not perfected), liens or other
            possible claims upon the Shares.

      F.    Tax Withholding. Whenever Stock is to be delivered upon the exercise
            ---------------
            of a Repurchase Right, the Corporation shall require as a condition
            of such delivery: (i) the cash payment by the Recipient of an amount
            sufficient to satisfy all federal, state and local tax withholding
            requirements related to the exercise, (ii) the withholding of such
            amount through the reduction in the number of shares of Stock to be
            delivered to the Recipient, or (iii) the withholding of such amount
            from compensation otherwise due to the Recipient.

            (1)   Timing of Election. Such tax withholding election shall be
                  ------------------
                  made before the date on which the amount of tax to be withheld
                  is determined by the Corporation, and such election shall be
                  irrevocable.

                                      III

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            (2)   Additional Withholding. With the consent of the Corporation,
                  ----------------------
                  the Recipient may elect a greater amount of withholding, not
                  to exceed the estimated amount of the Recipient's total tax
                  liability with respect to the exercise of the Repurchase
                  Rights. Such election shall be made at the same time and in
                  the same manner as provided in Paragraph 4F(1) above.

      G.    Definitions. For purposes of this Paragraph 4, the terms below shall
            -----------
            have the following meanings.

            (1)   Exercise Date shall mean the date upon which the Corporation
                  -------------
                  approves the Repurchase Right Exercise Form submitted by the
                  Recipient with respect to the Repurchase Rights being
                  exercised.

            (2)   Exercise Price shall mean not less than 10% of the Fair Market
                  --------------
                  Value of the Restricted Stock subject to the Repurchase Right,
                  determined as of: (i) the date of this Agreement for
                  Restricted Stock outstanding but not yet vested as of the date
                  of this Agreement, and (ii) the Grant Date for Restricted
                  Stock granted subsequent to the date of this Agreement and
                  which becomes subject to this Agreement.

            (3)   Fair Market Value Means, for the date in question, the closing
                  -----------------
                  price of a share of Konover Property Trust, Inc. (formerly FAC
                  Realty, Inc.) Common Stock on the New York Stock Exchange or
                  such other securities exchange upon which the Stock is listed;
                  provided, if there is no trading permitted on such date, then
                  the closing price on the last previous day upon which trading
                  is permitted.

            (4)   Grant Date means the date on which Restricted Stock is granted
                  ----------
                  under the Plan.

5.    MISCELLANEOUS PROVISIONS. The following provisions shall apply to the
      exchange of Repurchase Rights for Restricted Shares under this Agreement.

      A.    Headings. The headings of Paragraphs under this Agreement are solely
            --------
            for convenience of reference. If there is any conflict between such
            headings and the text of this Agreement, the text shall control.

      B.    Incorporation by Reference and Conflict of Language. The provisions
            ---------------------------------------------------
            of the Plan, along with their defined terms, are hereby incorporated
            by reference into this Agreement. Should the provisions of this
            Agreement conflict with the provisions of the Plan, then the
            provisions of the Plan will control. Should the provisions of this
            Agreement conflict with the terms and conditions of any employment
            agreement entered into by the Recipient and the Corporation, then
            the provisions of this Agreement will control.

      C.    Designation of Beneficiary. On or about the execution of this
            --------------------------
            Agreement by the Recipient, the Recipient shall designate one or
            more Beneficiaries to receive benefits under the Agreement in the
            event of the Recipient's death while holding unexercised Repurchase
            Rights. Such Beneficiaries shall be named on forms

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            provided by the Committee, and a Recipient may change a Beneficiary
            designation at any time by filing the prescribed form with the
            Committee.

            (1)   No Consent Required to Name Beneficiary. Neither the consent
                  ---------------------------------------
                  of the Recipient's current Beneficiary nor spouse shall be
                  required for the naming of a Beneficiary or for a change of
                  Beneficiary. No Beneficiary shall have any rights under this
                  Agreement during the lifetime of the Recipient, except as may
                  otherwise be provided in this Agreement.

            (2)   Death Without Designation of Beneficiary. A Recipient who dies
                  ----------------------------------------
                  without having designated a Beneficiary and who is lawfully
                  married on the date of death shall be deemed to have named the
                  Recipient's surviving spouse as Beneficiary. Any other
                  Recipient who dies without having designated a Beneficiary
                  shall be deemed to have named the Recipient's estate as
                  Beneficiary.

      D.    Gender. Unless the context clearly requires a different meaning, all
            ------
            pronouns in this Agreement shall refer indifferently to persons of
            any gender.

      E.    Singular and Plural. Unless the context clearly requires a different
            -------------------
            meaning, singular terms shall also include the plural and vice
            versa.

      F.    Governing Law. Except to the extent preempted by federal law, the
            -------------
            construction and operation of this Agreement shall be governed by
            the laws of the State of North Carolina without regard to the choice
            of law principles of such state.

      G.    Severability. If any provision of this Agreement is held illegal or
            ------------
            invalid by any court or governmental authority for any reason, the
            remaining provisions shall remain in full force and effect and shall
            be construed and be enforced in accordance with the purposes of the
            Agreement as if the illegal or invalid provision did not exist.

            If permissible, and in lieu of such illegal, invalid or
            unenforceable provision, there shall be added automatically as a
            part of this Agreement, a legal, valid and enforceable provision a
            similar in term to such illegal, invalid or unenforceable provision
            as may be possible, and the parties hereto request the court or any
            arbitrator to whom disputes relating to this Agreement are submitted
            to reform the otherwise illegal, invalid or unenforceable provision
            in accordance with this Paragraph 5G.

      H.    No Obligation to Exercise. The granting of a Repurchase Right shall
            -------------------------
            impose no obligation upon Recipient to exercise such Repurchase
            Right.

      I.    No Rights as Shareholder. Prior to the tender of payment of the
            ------------------------
            Exercise Price following the exercise of a Repurchase Right,
            Recipient shall have no rights, interests or other privileges of a
            shareholder of the Corporation with respect to any Stock obtainable
            upon the exercise of the Repurchase Right.

      J.    No Right to Continued Employment. Nothing contained in the Agreement
            --------------------------------
            shall be deemed to give any person the right to be retained in the
            employ of the

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            Corporation, or to interfere with the right of the Corporation to
            discharge any person at any time without regard to the effect that
            such discharge shall have upon such person's rights or potential
            rights, if any, under the Agreement.

      K.    Notices. Any notice to be provided under the Agreement to the
            -------
            Corporation shall be mailed (by certified mail, postage prepaid) or
            delivered to the Corporation personally at the Corporation's primary
            executive offices. Any notice to Recipient shall be mailed (by
            certified mail, postage prepaid) or delivered personally to
            Recipient at the current address shown on the payroll records of the
            Corporation. No notice shall be binding on the Corporation until
            received by the Corporation, and no notice shall be binding on
            Recipient until received by Recipient.

      L.    Spendthrift Provision. Subject to the exceptions below, the right of
            ---------------------
            Recipient to receive shares of Stock under this Agreement upon the
            exercise of a Repurchase Right shall not be subject in any manner to
            sale, transfer, assignment, pledge, attachment, garnishment, or
            other alienation or encumbrance of any kind. Nor may such right be
            taken, either voluntarily or involuntarily for the satisfaction of
            the debts of, or other obligations or claims against, any such
            person or entity, including claims for alimony, support, separate
            maintenance and claims in bankruptcy proceedings.

            (1)   Permitted Transfer. Notwithstanding the above provisions of
                  ------------------
                  this Paragraph 3L, Repurchase Rights may by gifted by
                  Recipient to his or her spouse, child, stepchild, grandchild,
                  parent, or sibling, or legal dependent of Recipient, or to a
                  trust of which the beneficiary or beneficiaries of the trust
                  shall be either a person designated above or Recipient. In the
                  event of such gifting, the Shares obtainable through exercise
                  of the Repurchase Rights shall remain subject to the
                  restrictions, obligations and conditions set forth in the Plan
                  and in this Agreement, including the original Exercise Period.

      M.    Incapacity of Recipient. If any person entitled to exercise a
            -----------------------
            Repurchase Right under the Agreement is deemed by the Corporation to
            be incapable (physically or mentally) of personally receiving and
            giving a valid receipt for shares of Stock acquired through the
            exercise of a Repurchase Right, then, unless and until claim
            therefore shall have been made by a duly appointed guardian or other
            legal representative of such person, the Corporation may provide for
            the transfer of such shares of Stock (or any part thereof) to be
            made to any other person or institution then contributing toward or
            providing for the care and maintenance of such person. Any such
            transfer of Stock shall be a payment for the account of such person
            and represent a complete discharge of any liability of Corporation
            and the Agreement with respect to such Stock.

      N.    Addresses. Recipient shall keep Corporation informed of his or her
            ---------
            current address and the current address of his or her Beneficiary.
            Corporation shall not be obligated to search for the whereabouts of
            any person.

      O.    Limitations on Liability. Recipient and any other person claiming
            ------------------------
            benefits under the Agreement shall be entitled under this Agreement
            only to those rights

                                       VI

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            accompanying the exercise of a Repurchase Right ("Repurchase Right
            Claims"). Neither Corporation nor any individual acting as Recipient
            or agent of Corporation shall be liable to Recipient or any other
            person for any other claim, loss, liability or expense under this
            Agreement not directly related to a Repurchase Right Claim.

      P.    Forfeiture of Unexercised Repurchase Rights. Notwithstanding any
            -------------------------------------------
            other provision of the Agreement, should Recipient engage in theft,
            fraud, embezzlement or willful misconduct causing significant
            property damage to Corporation, then any issued but unexercised
            Repurchase Rights then outstanding will automatically be forfeited.
            The determination of theft, embezzlement or willful misconduct will
            be made by the Board in good faith, but such determination does not
            require an actual criminal indictment or conviction prior to or
            after such decision. In any determination of forfeiture pursuant to
            this Paragraph 5P, Recipient will be given the opportunity to refute
            any such decision by the Board, but the Board's decision on the
            matter will be considered final and binding on Recipient.

      Q.    Recipient's Rights Unfunded. The Agreement at all times shall be
            ---------------------------
            unfunded as defined under applicable provisions of the Internal
            Revenue Code and under the Employee Retirement Income Security Act.
            The right of Recipient or any Beneficiary to receive shares of Stock
            subject to Repurchase Rights granted under the Agreement shall
            represent an uninsured claim against the general assets of
            Corporation in the event of the Corporation's insolvency or
            bankruptcy.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first shown above.

                                         RECIPIENT

                                         ---------------------------------
                                         [FirstName] [Lastname]

                                         ---------------------------------
                                         Date

                                         Konover Property Trust, Inc. (formerly
                                         FAC Realty, Inc.)

                                         ---------------------------------
                                         President, Chief Executive Officer

                                         ---------------------------------
                                         Date

                                      VIIEXHIBIT 10.21

                                          [LOGO OF KONOVER PROPERTY TRUST, INC.]

MEMORANDUM

To:   Dan Kelly

From: Michael Maloney

CC:   Human Resources

Date: 3/25/2002

Re:   Your Employment Letter Dated December 29, 2000 ("Employment Letter")

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At its March 7, 2002 meeting, the Company's Board directed me to assure you of
the following, in light of the terms of the Employment Letter.

Despite the exclusion of "LF Strategic Realty Investors II L.P. and its
affiliates" (hereinafter collectively "Lazard") from the definition of "Change
of Control" appearing in the Employment Letter, the Board agrees that if Lazard
takes the Company private, such will indeed be a Change of Control for purposes
of the Employment Letter. To the extent the terms of the Employment Letter would
preclude you from receiving benefits under paragraphs 3 and 4 thereof in the
event that Lazard takes the Company private, the Board is willing to modify the
Employment Letter as to that particular scenario. Nonetheless, to be clear, the
Board is not waiving any other rights, terms or conditions of the Employment
Letter and such remain in effect.

Nothing in this memorandum should be construed as a statement that Lazard is or
is not taking the Company private. There are many alternatives available to the
Board and no course of action has been determined at this point.

If you have any questions, please contact me.

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