<PAGE>

                                                                   EXHIBIT 10.68

                                                                         Saginaw

                  ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT

            This ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT is entered into
this 13th day of August, 1997, by and between Jubilee Limited Partnership, an
Ohio limited partnership (hereinafter, the "Assignor") and MRSLV Saginaw L.L.C.,
a Delaware limited liability company (hereinafter, the "Assignee") .

                                    RECITALS:

            WHEREAS, pursuant to the terms and conditions of the letter dated
June 23, 1997, as amended by letters dated July 2, 1997 and July 18, 1997
(collectively, the "Agreement"), Schottenstein Stores Corporation on behalf of
Assignor has agreed to sell and Mesirow Realty Sale-Leaseback, Inc. ("Mesirow")
has agreed to purchase that certain improved real property generally known as
3828 Bay Road, Saginaw, Michigan (the "Premises"); and

            WHEREAS, Mesirow has formed Assignee for the purpose of taking title
to the Premises; and

            WHEREAS, the Premises are currently occupied and subject to a
certain Lease Agreement entered into by and between Jubilee Limited Partnership
and Schottenstein Stores Corporation D/B/A Value City Furniture, dated March 6,
1996, as the same may have been amended from time to time, a copy of which is
attached hereto and incorporated herein as Exhibit A (the "Lease"); and

            WHEREAS, pursuant to the terms and conditions of the Agreement,
Assignor is obligated to assign to Assignee all of its rights and title to the
Lease and Assignee is obligated to assume Assignor's duties and responsibilities
thereunder; and

            WHEREAS, Assignor and Assignee desire to set forth the terms and
conditions of such assignment and assumption;

            NOW, THEREFORE, in consideration of the Agreement, the mutual
covenants, obligations and rights contained herein, the parties hereby agree as
follows:

            1. Assignor hereby grants, bargains, conveys and assigns to Assignee
all of its right, title and interest in and to the Lease.

            2. Until the assignment of the Lease from Assignee to Value City
Department Stores, Inc., Assignee hereby expressly agrees to assume, undertake,
perform and observe all of the

<PAGE>

terms, conditions, covenants and obligations required to be performed or
observed by the lessor under the Lease.

            3. Assignor hereby agrees to indemnify, defend and hold harmless
Assignee from and against any liabilities, claims, losses, damages, costs or
expenses arising directly or indirectly out of or with respect to any failure by
Assignor to perform its obligations under the Lease occurring prior to the
effective date of this Assignment.

            4. Assignee expressly acknowledges and agrees that Assignor is
hereby assigning its rights in respect of the Lease without warranty of any
kind, express or implied.

            IN WITNESS WHEREOF, the Assignor and Assignee have executed this
Assignment and Assumption of Lease Agreement effective on the day and year first
written above.

                                    JUBILEE LIMITED PARTNERSHIP, an Ohio limited
                                    partnership

                                    By: Schottenstein Professional
                                        Asset Management Corporation,
                                        a Delaware corporation and
                                        general partner

                                        By: /s/ Thomas P. Ketteler
                                            --------------------------
                                        Its: Vice President


                                    MRSLV SAGINAW L.L.C., a Delaware
                                    limited liability company

                                    By: Mesirow Realty Sale-Leaseback,
                                        Inc., an Illinois corporation,
                                        its sole member

                                        By: /s/ [ILLEGIBLE]
                                            --------------------------

                                        Its: Vice President


                                       2

<PAGE>

                               AGREEMENT OF LEASE

                            LANDLORD:

                            Jubilee Limited Partnership, an Ohio limited
                            partnership

                            1798 Frebis Ave.
                            Columbus, Ohio 43206

                            TENANT:

                            Schottenstein Stores Corporation d/b/a Value City
                            Furniture
                            1800 Moler Road
                            Columbus, Ohio 43207

                            PREMISES:

                            Bay and McCarty Roads
                            Saginaw, Michigan






<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                  Page
                                                                  ----
<S>                                                               <C>
Section 1.  Basic Lease Provisions and Premises                    1
Section 2.  Site Plan                                              1
Section 3.  Term                                                   2
Section 4.  Rent                                                   2
Section 5.  Taxes                                                  4
Section 6.  Utilities                                              6
Section 7.  Use                                                    6
Section 8.  Landlord and Tenant's Work                             6
Section 9.  Tenant Alterations and Improvements                    7
Section 10. Landlord's Additional Covenants                        7
Section 11. Tenant's Property                                      8
Section 12. Signs                                                  8
Section 13. Assignment and Subletting                              9
Section 14. Maintenance                                            9
Section 15. Common Area Maintenance                               10
Section 16. Landlord's Maintenance and Repairs                    12
Section 17. Surrender of Premises                                 12
Section 18. Insurance                                             13
Section 19. Compliance with Governmental Regulations              14
Section 20. Damage or Destruction                                 15
Section 21. Condemnation                                          16
Section 22. Indemnification                                       16
Section 23. Quiet Enjoyment                                       16
Section 24. Landlord's Covenants                                  16
Section 25. Hazardous Substances                                  16
Section 26. Default by Tenant - Remedies of Landlord              18
Section 27. Landlord's Default                                    20
Section 28. Conditions to Lease                                   20
</TABLE>



<PAGE>

<TABLE>
<S>                                                               <C>
Section 29. Nondisturbance                                        21
Section 30. Landlord's Construction Work                          21
Section 31. Holding Over                                          23
Section 32. For Rent Signs                                        23
Section 33. Successors                                            23
Section 34. Waiver                                                23
Section 35. Notices                                               24
Section 36. Broker                                                24
Section 37. Memorandum of Lease                                   24
Section 38. Estoppel Certificates                                 24
Section 39. Landlord's Consent                                    24
Section 40. Marketable Title                                      25
Section 41. Governing Law                                         25
</TABLE>

<TABLE>
<S>                                                               <C>
EXHIBIT "A" - Site Plan
EXHIBIT "B" - Legal Description
EXHIBIT "C" - Use Restrictions
EXHIBIT "D" - Landlord's Work
EXHIBIT "E" - Tenant's Work
EXHIBIT "F" - Signage
EXHIBIT "G" - Broker Agreement
EXHIBIT "H" - Memorandum of Lease
</TABLE>



<PAGE>

                               AGREEMENT OF LEASE

      THIS AGREEMENT OF LEASE made as of March 6, 1996, between Jubilee Limited
Partnership, a(n) Ohio limited partnership (the "Landlord"), and Schottenstein
Stores Corporation d/b/a/ Value City Furniture, a Delaware corporation (the
"Tenant").

      Section 1. Basic Lease Provisions and Premises.

      (a) Basic Lease Provisions.

            (i)   Name of Shopping Center: Bay Crossings

            (ii)  Leasable Area of Premises:48,000 square feet

            (iii) Primary Lease Term: ten (10) years

            (iv)  Annual Fixed Rent:

<TABLE>
<S>   <C>
1-5   $ 228,000.00
6-10  $ 240,000.00
</TABLE>

            (v)   Monthly Installment of Fixed Rent:

<TABLE>
<S>   <C>
1-5   $ 19,000.00
6-10  $ 20,000.00
</TABLE>

            (vi)  Renewal Lease Term: Six (6), Five (5) year renewals

            (vii) Annual Fixed Rent During Renewal Term:

<TABLE>
<S>    <C>
11-15  $ 252,000.00
16-20  $ 264,000.00
21-25  $ 276,000.00
26-30  $ 288,000.00
31-35  $ 300,000.00
36-40  $ 312,000.00
</TABLE>

            (viii) Monthly Installment of Fixed Rent During Renewal Term:

<TABLE>
<S>    <C>
11-15  $ 21,000.00
16-20  $ 22,000.00
21-25  $ 23,000.00
26-30  $ 24,000.00
31-35  $ 25,000.00
36-40  $ 26,000.00
</TABLE>

      (b) Landlord hereby leases to Tenant, and Tenant hereby rents from
Landlord, the premises containing approximately 48,000 square feet and known as
Bay Crossings and outlined on the site plan attached to this Lease as Exhibit
"A" and made a part hereof (the "Site Plan"), together with all improvements now
or to be constructed thereon, and all easements, rights, privileges and
interests appurtenant thereto (collectively referred to as the "Premises"). The
Premises constitute a portion of a shopping center known as Bay Crossings (the
"Center"). Landlord represents and warrants to Tenant that the Premises and
Center are substantially shown on the Site Plan, including all rights of access,
ingress and egress, at the point shown on the Site Plan, in, to, from and over
any and all streets, ways or alleys adjoining the Center. The real property
comprising the Center is more particularly described on Exhibit "B", attached
hereto and made a part hereof.

      (c) Landlord also grants to Tenant, its customers, employees, licensees,
invitees and subtenants a non-exclusive easement in common with the other
tenants of the Center for the use of all parking areas, driveways, outdoor
lighting facilities, sidewalks, service areas, landscaped areas (including all
landscaped areas adjacent to the Premises) footpaths, corridors and the other
areas intended for the non-exclusive use of the tenants of the Center
(collectively referred to as the "Common Areas"). Tenant shall also have the
right to use, on a non-exclusive basis with other tenants of the Center, the
areas, if any, on real estate adjacent to the Center and shown on




<PAGE>

the Site Plan. Landlord covenants, represents and warrants that, during the
Lease term, there shall be reasonably adequate sidewalks, driveways and roadways
for automotive and pedestrian ingress and egress to and from Tenant's Premises
and adjacent public streets and highways.

      Section 2. Site Plan. The Landlord covenants that the Center is or shall
be developed in accordance with the Site Plan and that it shall be used as a
retail shopping center throughout the term of this Lease. The Landlord may not
modify or replace the Site Plan without the prior written consent of the Tenant,
which consent shall not be unreasonably withheld or delayed. No such
modification or replacement shall (i) reduce the ratio of parking spaces to
gross leasable area of buildings in the Center shown on the Site Plan, (ii)
reduce or rearrange the parking spaces cross-hatched on the Site Plan, (ii)
interfere with truck access to the loading doors of the Premises, (iv) interfere
with customer access to the Premises or the parking areas closest to the
Premises, (v) interfere with the visibility of the Premises from the roads
providing direct access to the Center or (vi) result in the construction of any
buildings in the area designated "No Build Area" on the Site Plan.

      Section 3. Term.

      (a) Deleted

      (b) The construction term (the "Construction Term") of this Lease shall
begin on the Commencement Date and end on the "Rent Commencement Date" (as
hereinafter defined). During the Construction Term, the Tenant shall proceed to
renovate the Premises and to install and construct in the Premises certain
additional improvements, as provided in paragraph 8 hereof.

      (c) The initial term (the "Initial Term") of the Lease shall (i) commence
on the date on which the Tenant opens for business in the Premises, but in no
event later than one hundred and twenty (120) days after Landlord delivers
possession (the "Rent Commencement Date") and (ii) end on the last day of the
first full Lease Year. The term "Lease Year" shall mean a period of twelve
consecutive calendar months. The first Lease Year during the term hereof shall
commence on the first day of the first February following the Rent Commencement
Date. Each subsequent Lease Year shall begin on the anniversary of the first
Lease Year.

      (d) The Tenant shall have six (6) consecutive separate options to extend
the term of this Lease for successive renewal terms of five (5) Lease Years
each. The Tenant may exercise each such renewal option by giving written notice
to the Landlord at least one hundred and twenty (120) days prior to the end of
the then current term or renewal term; provided, however, that if the Tenant
fails to exercise any renewal term option, the Tenant's rights to exercise the
option shall not expire until thirty (30) days after written notice to the
Tenant from the Landlord of the Tenant's failure to exercise said option.

      (e) The Construction Term, Initial Term and any renewal terms are
hereinafter collectively referred to as the "term".

      (f) Beginning on the date of this Lease and ending on the Commencement
Date, the Tenant, its employees and agents shall have the right to enter the
Premises or any part thereof at reasonable times during regular business hours
for the purpose of making such inspections as the Tenant may deem reasonably
necessary; provided that (i) such entry does not interfere with the business, if
any, being operated in the Premises, and (ii) the Tenant shall restore the
Premises to substantially the same condition as existed on the date of this
Lease. In consideration of the Tenant's right to inspect the Premises, the
Tenant agrees to indemnify, defend and hold the Landlord harmless from any and
all loss, damage, claims, costs, demands or expenses (including reasonable
attorney's fees and litigation costs) resulting from such entry on the Premises
by the Tenant or its agents.

      Section 4. Rent.

      (a) During the Initial Term and any renewal term hereof, the Tenant agrees
to pay to the Landlord annual base rent in the amounts and for the periods set
forth below.



<PAGE>

<TABLE>
<CAPTION>
          Annual Rent
Period    Per Sq. Ft.    Annual Rent      Monthly Rent
------    -----------   ------------      ------------
<S>       <C>           <C>               <C>
1-5        $ 4.75       $ 228,000.00      $ 19,000.00
6-10       $ 5.00       $ 240,000.00      $ 20,000.00
</TABLE>

      (b) Such rent shall be payable in advance in equal monthly installments
payable on the first day of each calendar month during the term hereof,
commencing on the first day of the first full calendar month following the Rent
Commencement Date. All payments of rent shall be made to the Landlord at the
address specified in paragraph 35 hereof or as the Landlord otherwise notifies
the Tenant in writing.

      (c) If, at any time or times during the term, the Premises are remeasured
and it is determined from such remeasurement that the gross leasable square
footage of the Premises as set forth in paragraph 1 of this Lease is incorrect,
the annual rent shall be adjusted to equal the product of the actual gross
leasable square footage of the Premises multiplied by the applicable amount of
annual rent per square foot as set forth in subparagraph (a) above. Upon the
request of either party, an Addendum to this Lease shall be executed setting
forth the actual gross leasable square footage of the Premises.

      (d) Beginning with the first Lease Year, the Tenant shall pay to the
Landlord, in addition to the minimum rental, an annual percentage rent in the
amount, if any, by which the Tenant's "Gross Sales" (as hereinafter defined)
during each Lease Year, multiplied by two percent (2%) exceeds the annual base
rent for such Lease Year. The annual percentage rent shall be paid by the Tenant
to the Landlord within sixty (60) days after the end of each Lease Year. Each
such payment shall be accompanied by a statement signed by an authorized
representative of the Tenant setting forth the Tenant's Gross Sales for each
Lease Year. For purposes of permitting verification by the Landlord of the Gross
Sales reported by the Tenant, the Landlord shall have the right, upon not less
than five (5) days notice to the Tenant, to audit the Tenant's books and records
relating to the Gross Sales for a period of two (2) years after the end of each
Lease Year. If such an audit reveals that the Tenant has understated its Gross
Sales by more than three percent (3%), the Tenant, in addition to paying the
additional percentage rent due, shall pay the cost of the audit.

      Within thirty (30) days after the end of each month during the term
hereof, the Tenant shall deliver to the Landlord a statement signed by an
authorized representative of the Tenant setting forth the Gross Sales during
such month.

      "Gross Sales" shall mean the aggregate amount, expressed in dollars, of
all sales of goods, whether made in full or discount prices or for cash or
credit, made in, on, or from the Premises by the Tenant, provided, however, that
the following shall be excluded from Gross Sales: (i) all credit, refunds, and
allowances granted to customers; (ii) all excise taxes, sales taxes, and other
taxes levied or imposed by any governmental authority upon or in connection with
such sales; (iii) bulk sales of goods in connection with the sale of the
Tenant's business; (iv) sales of fixtures, furniture and equipment not made in
the ordinary course of business; (v) sales of cigarettes and other tobacco
products; (vi) discount sales made to employees of the Tenant and the Tenant's
subsidiaries and affiliated corporations, if any; (vii) exchanges of merchandise
between the Tenant's warehouse or other stores and other similar movements of
merchandise; (viii) returns to suppliers; (ix) the proceeds from vending
machines and coin operated telephones and commissions on such proceeds to the
extent such proceeds and commissions are less than five percent (5%) of Gross
Sales exclusive of such proceeds and commissions; (x) uncollectible customer
charges and bad checks; (xi) disallowed credit card amounts and credit card
service charges or fees retained by the credit card company; (xii) delivery
charges; (xiii) finance charges paid directly to Tenant (which shall not include
credit card fees); (xiv) customer credit insurance; (xv) extended product
warranty fees, (xvi) fabric coating charges.

      Section 5. Taxes.

      (a) "Real Estate Taxes" means all general and special real estate taxes,
special assessments and other ad valorem taxes, rates, levies and assessments
paid upon or with respect to the Premises, or, if the Premises is not separately
assessed for such purposes, the tax parcels comprising the Center, for a
calendar year or portion thereof to any governmental agency or



<PAGE>

authority and all taxes specifically imposed in lieu of any such taxes. Nothing
contained in this Lease shall require the Tenant to pay any franchise,
corporate, estate, inheritance, succession, capital levy, business or transfer
tax of the Landlord, or any income, profits, gross receipts or renewal tax.

      (b) Except as provided in subparagraph (c) below, the Landlord shall pay,
as and when they become due, all Real Estate Taxes payable upon or with respect
to the Center. The Landlord shall pay or cause the payment of all Real Estate
Taxes before any fine, penalty, interest or cost may be added thereto, become
due or be imposed by operation of law for the nonpayment or late payment
thereof. Should the Landlord fail to pay such Real Estate Taxes or any part
thereof, the Tenant shall have the right, at its sole election, after written
notice to the Landlord in accordance with paragraph 35, to cure such failure by
payment of the Real Estate Taxes and any interest and penalties due thereon and
may deduct the cost thereof, plus interest at the rate of ten percent (10%) per
annum (the "Default Rate"), from the next installment(s) of base rent and other
charges due hereunder. In no event shall the Tenant be liable for any discount
forfeited or penalty incurred as a result of late payment by another tenant. The
Landlord shall remain primarily responsible for such payment of Real Estate
Taxes notwithstanding the fact that such payment may be made by a tenant of the
Center or other third party pursuant to an agreement to which the Tenant is not
a party.

      (c) If the Premises are separately assessed for Real Estate Taxes, the
Tenant shall pay, within thirty (30) days after invoice thereof (but not more
than forty-five (45) days prior to the due date thereof), all Real Estate Taxes
payable upon or with respect to the Premises. Should the Tenant fail to pay such
Real Estate Taxes or any part thereof within thirty (30) days after invoice
therefor (but not more than forty-five (45) days prior to the due date thereof),
the Landlord shall have the right, at its sole election, after written notice to
the Tenant in accordance with paragraph 26, to cure such failure by payment of
such Real Estate Taxes. Any such amount(s) paid by the Landlord shall constitute
additional rent due hereunder and shall bear interest at the Default Rate until
the Landlord is reimbursed for such amounts. Tenant shall only be liable for
interest and penalties thereon to the extent arising after such thirty (30) day
payment period but prior to the payment of such Real Estate Taxes by Tenant to
Landlord.

      (d) If the Premises are not separately assessed for Real Estate Taxes, the
Tenant shall reimburse the Landlord for the Tenant's pro rata share of the Real
Estate Taxes payable upon or with respect to the Center exclusive of any
penalties or late charges within thirty (30) days after the Tenant's receipt of
the Landlord's statement therefor (but not more than forty-five (45) days prior
to the due date thereof), accompanied by the tax bill on which such statement is
rendered. The Tenant's pro rata share of the Real Estate Taxes shall be
calculated by multiplying the total tax assessed, net of any early payment
discounts available from the taxing authority at the time the Tenant's payment
is due, by a fraction, the numerator of which is the gross leasable square
footage of the Premises and the denominator of which is the total gross leasable
square footage of all buildings in the Center. Changes in applicable floor areas
in the Premises or in the Center shall result in corresponding pro rata
adjustments. Real Estate Taxes shall be prorated as of the Rent Commencement
Date and the expiration or earlier termination of this Lease, and, if
applicable, the Landlord shall promptly return to the Tenant any overpayment
made by the Tenant. All basements and mezzanine areas in which Landlord is
receiving rent or income shall be included.

      (e) Landlord shall deliver to Tenant copies of all notices of proposed
increases in Taxes or proposed revaluation of any property that is included in
the calculation of Tenant's proportionate share of Taxes in time to permit
Tenant to contest such proposed increases or revaluation. If the Tenant disputes
the amounts of any Real Estate Taxes, it may contest and defend, and conduct any
necessary proceedings to avoid, such disputed taxes or assessments, and the
Landlord shall cooperate with the Tenant in contesting the validity or amount of
such taxes, including joining in the signing of any protests or pleadings that
the Tenant may deem reasonably advisable to file. Any rebate made on account of
any Real Estate Taxes attributable to the Premises shall belong to, and be paid
to, the Tenant. During any such contest, the Tenant agrees to prevent any public
sale, foreclosure or any divesting thereby of the Landlord's title to the
Premises.



<PAGE>

      (f) Any special assessments for benefits on or to the Center installed
following the Commencement Date shall be included in Real Estate Taxes.
(Predevelopment and development assessments and impact fees shall not be
included in Real Estate Taxes or in other pro rata charges to Tenant.) Landlord
agrees to elect the longest period available under law for payment of such
assessments. Landlord agrees that such assessments shall be amortized to Tenant
over a term not less than ten (10) years, and that any unamortized assessment
remaining at the end of the Lease term shall be borne by Landlord. If special
assessments are permitted to be paid in installments, and if the payment of such
installments are permitted to be paid over a period in excess of ten (10) years,
then there shall be included in Real Estate Taxes for any fiscal year only the
amount of the installment of such assessment that would result had Landlord
elected to pay such assessment over the maximum number of installments permitted
by law to be paid without interest or penalties. Such installments shall be in
lieu of amortizing. Landlord will not submit improvements to a special
improvements district without Tenant's prior written consent unless such
submission shall not result in any charges to Tenant for such improvements.

      Section 6. Utilities. The Tenant shall pay all utility charges and
deposits required to establish accounts for gas, heat, light, water, sewer,
electricity, garbage and other utility use services supplied to the Premises
during the term of this Lease. The Premises shall be separately metered by
Landlord for such charges. In the event of any assignment or subletting of a
portion of the Premises by the Tenant then, at the Tenant's option, such
assignment or subletting shall provide that either (i) such portion of the
Premises shall be separately metered for such charges or (ii) the subtenant or
assignee shall be required to pay its pro rata share of such expenses (which pro
rata share shall be the amount of such costs multiplied by a fraction, the
numerator of which shall be the number of gross leasable square feet in that
portion of the Premises that is assigned or sublet, and the denominator of which
shall be the gross leasable square footage of the Premises).

      Section 7. Use.

      (a) The Tenant shall have the right to use the Premises for any retail
purpose excluding only those uses set forth in Exhibit "C", attached hereto and
made a part hereof (but only for so long as they remain in effect and have not
been otherwise waived in writing by the parties benefitted thereby). The
Landlord represents and warrants to the Tenant that the Premises are properly
zoned for Tenant's stated use and that all use restrictions are set forth in
Exhibit "C" hereof and that the Tenant's use of the Premises as a furniture
store does not violate any such use restrictions. The Tenant shall not permit or
suffer the use of the Premises for any unlawful purpose.

      (b) The Landlord shall maintain in the Center a mix of tenants as will
best serve the interest of all tenants. So long as the Tenant is operating from
the Premises, the Landlord shall not lease, or approve or consent to any lease,
assignment or sublease of space in the Center to a furniture store.

      Section 8. Landlord and Tenant's Work. The Landlord agrees to provide, at
its expense, the improvements to the Premises described on Exhibit "D", attached
hereto and made a part hereof (the "Landlord's Work"). The Landlord's Work shall
be deemed "substantially completed" when all of the Landlord's Work has been
completed except for punch list items that do not affect the Tenant's use or the
appearance of the Premises. The Tenant agrees to provide, at its expense, after
the completion of Landlord's Work, the improvements to the Premises described on
Exhibit "E", attached hereto and made a part hereof (the "Tenant's Work"). The
Landlord's Work and the Tenant's Work shall be done in a good and workmanlike
manner and in accordance with plans and specifications approved by the other
party, which approval shall not be unreasonably withheld or delayed, and shall
be in compliance with all applicable building codes, laws, ordinances and
regulations. The plans and specifications delivered for approval to the Tenant
and the Landlord, as applicable, shall be deemed approved if not approved or
otherwise acted upon within fifteen (15) days following receipt of such plans
and specifications. The Landlord and the Tenant shall obtain, at their own
expense, all necessary building permits for their respective work.

      Section 9. Tenant Alterations and Improvements. The Tenant may, from time
to time, make or cause to be made any interior nonstructural alterations,
additions or improvements to the Premises without the Landlord's consent. The
construction of interior demising walls and interior



<PAGE>

doors shall be deemed nonstructural. The Tenant may make interior structural and
exterior alterations, additions or improvements to the Premises only with the
Landlord's prior written consent, which consent shall not be unreasonably
withheld or delayed. Any request to make such interior structural or external
alterations, additions or improvements shall be deemed approved if not approved
or otherwise acted upon within fifteen (15) days following request for such
approval. The Landlord agrees to execute and deliver upon the Tenant's request
any instrument or instruments which may be required by any public or
quasi-public authority for the purpose of obtaining any license or permit for
the making of such alterations or improvements.

      Section 10. Landlord's Additional Covenants.

      (a) Exclusive. To the fullest extent permitted by law and as a condition
of an inducement to Tenant's entering into this Lease, Landlord grants to Tenant
the exclusive right to operate in the Center (and any enlargement or expansion
thereof) furniture store. Any parcel sold shall require a restriction of deed
incorporating the foregoing exclusive.

      (b) Covenant Against Certain Uses. To the full extent permitted by law and
as a condition and inducement to Tenant to enter into this Lease, Landlord
agrees that Landlord will not lease, rent, occupy or permit to be occupied any
premises in the Center (and any enlargement or expansion thereof) to be used for
the operation of a bingo parlor, bar, tavern, cocktail lounge, restaurant, adult
book or adult video store (defined for the purposes hereof as a store devoting
ten percent (10%) or more of its floor space to offering books and/or video
materials for sale or for rent which are directed to or restricted to adult
customers due to sexually explicit subject matter or for any other reason making
it inappropriate for general use), automotive maintenance or automotive repair
facility, warehouse, car wash, pawn shop, check cashing service, establishment
selling second hand goods, or flea market, entertainment or recreational
facility (including bowling alley) or training or educational facility; for the
renting, leasing or selling or displaying therefore of any boat, motor vehicle
or trailer; or for industrial purposes. For the purpose hereof, the phrase
"entertainment or recreational facility" shall include, without limitation, a
movie or live theater or cinema, bowling alley, skating rink, gym, health spa or
studio, dance hall, billiard or pool hall, massage parlor, health club, game
parlor or bingo parlor or video arcade (which shall be defined as any store
containing more than five (5) electronic games). The phrase "training or
educational facility" shall include, without limitation, a beauty school, barber
college, reading room, place of instruction or any other operation catering
primarily to students or trainees as opposed to customers. Notwithstanding the
foregoing, Landlord may lease any premises in the Center for use as a restaurant
provided that Landlord complies with the restrictions set forth hereunder in
this Section (b). Notwithstanding anything to the contrary contained in this
Lease and subject to the provisions of Section above, no part of the Center
within four hundred feet (400') of Tenant's Building shall be used as a
restaurant (except that one restaurant, sit down type, not to exceed 2,500
square feet shall be permitted, provided, however, any such restaurant use shall
not offer liquor, beer or wine for sale).

      (c) Landlord further agrees that Tenant shall have the right to approve
any changes in use or other alterations to any building within one hundred (100)
feet of the Premises.

      (d) Landlord acknowledges that in the event of a breach or an attempted or
prospective breach hereof by Landlord, Tenant's remedies at law would be
inadequate. Therefore, in any such event, if such breach is not cured within
sixty (60) days after written notice from Tenant to Landlord, Tenant shall be
entitled, at its option and without limitation of any other remedy permitted by
law or equity or by this Lease, to cancel this Lease on thirty (30) days written
notice to Landlord and/or to full and adequate relief by temporary and permanent
injunction; provided that the remedy of lease cancellation shall not be
applicable if the violation of this Section is due to the breach of another
tenant's lease and Landlord is, in Tenant's good faith judgment, diligently
pursuing appropriate legal proceedings to halt the violation.

      Section 11. Tenant's Property. All equipment, inventory, trade fixtures
and other property owned by the Tenant and located in the Premises shall remain
the personal property of the Tenant and shall be exempt from the claims of the
Landlord or any mortgagee or lienholder of the Landlord without regard to the
means by which they are installed or attached. The Landlord expressly waives any
statutory or common law landlord's lien and any and all rights granted under




<PAGE>

any present or future laws to levy or distrain for rent (whether in arrears or
in advance) against the aforesaid property of the Tenant on the Premises and
further agrees to execute any reasonable instruments evidencing such waiver, at
any time or times hereafter upon the Tenant's request. The Tenant shall have the
right, at any time or from time to time, to remove such trade fixtures or
equipment. If such removal damages any part of the Premises, the Tenant shall
repair such damages. Tenant is expressly authorized to finance, pledge, and
encumber its own trade fixtures, equipment, and inventory for purposes of
financing such trade fixtures, equipment and inventory.

      Section 12. Signs.

      (a) Announcements. Landlord agrees, upon execution of this Lease, to
erect, at Landlord's expense, a sign on the Premises. Such sign shall be a
minimum of four feet (4') by eight feet (8') and visible to the public, as set
forth on Exhibit "F" attached hereto and made a part hereof.

      (b) Pylon and Building Signs. Landlord shall, at its sole cost and
expense, construct, erect and maintain at the location shown on the Site Plan,
pylon signs upon which Tenant's advertising panel shall be installed, and
thereafter throughout the Term of the Lease, Tenant shall have continuous
representation on the pylon sign(s) and Building sign and any replacement pylon
sign in the same position and size as shown on Exhibit "A". Landlord hereby
approves the color of Tenant's advertising panel for the pylon signs. The
dimensions and structure of the pylon sign, as well as the size of Tenant's
advertising panel and its placement in relation to other panels on the pylon
signs shall be approved by Tenant, in accordance with Tenant's sign requirements
as identified on Exhibit "F". Tenant shall have the right to install its
standard signs on the exterior of the Premises, as described on Exhibit "F"
attached hereto. Landlord agrees to provide an adequate building facia for
Tenant's signs.

      (c) Maintenance. Tenant agrees to maintain said advertising panel and
exterior building signs in a good state of repair, save the Landlord harmless
from maintenance or removal of such signs, provided that at the end of this
Term, the Tenant agrees to remove the same and repair any damages caused
thereby.

      (d) Interior Signage. Tenant shall also have the right to place signs or
banners in the windows of the Premises, provided same are professionally done.

      (e) Removal. Landlord agrees that at or before the time for surrender of
the Premises to Landlord, said Tenant may remove all the trade fixtures and
signs and all other personal property owned by Tenant in accordance with Section
herein.

      Section 13. Assignment and Subletting. Tenant shall have the right,
without the consent of the Landlord, (i) to grant licenses and/or concessions
with the Premises, and (ii) to assign this Lease or sublet all or any portion of
the Premises to a parent, subsidiary or affiliate corporation of the Tenant or
to a successor by merger, acquisition or consolidation of the Tenant, its parent
or subsidiary or to a corporation acquiring all or substantially all of the
assets of the Tenant, its parent or subsidiary; provided, however that Tenant
shall remain fully liable hereunder. Notwithstanding the foregoing, Tenant shall
be released from all further liability hereunder in the event such assignee (i)
has a net worth of at least Ten Million Dollars ($10,000,000.00), and (ii) has
sufficient business experience and a good business reputation.

      Tenant shall have the right, without the consent of Landlord, to assign
this Lease or sublet the Premises to any party or entity other than set forth in
the immediately preceding paragraph, so long as (i) such proposed use does not
violate any exclusive in the Center existing as of the date hereof, (ii) such
use is consistent with the general character of the Center, and (iii) the
proposed assignee or subtenant has sufficient business experience and a good
business reputation. In all other cases, Tenant may assign or sublet upon
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld or delayed. Tenant shall remain liable hereunder unless
such assignee or subtenant has a net worth greater than that of Tenant at the
time of such proposed assignment or subletting.

      Section 14. Maintenance.




<PAGE>

      (a) The Tenant shall maintain at its expense the interior of the Premises,
including the doors and windows therein, in good condition and repair. The
Tenant shall repair defective work performed as part of the Tenant's Work but
shall have no obligation to repair any defective work performed by the Landlord
as part of the Landlord's Work.

      (b) Tenant shall have the right to make alterations or additions to the
Premises at its sole cost and expense provided, nevertheless, that any such
alterations or additions shall be of good workmanship and material and shall not
reduce the size and strength of the then existing improvements. Tenant shall not
be required to remove any such additions or alterations or to restore the
Premises to their original condition at the termination of tenancy hereunder.
The Landlord hereby covenants and agrees to join with Tenant in applying for and
securing from any governmental authority having jurisdiction thereof, any
permits or licenses which may be necessary in connection with the making of any
alterations, additions, changes or repairs and the Landlord agrees, upon request
by the Tenant, to execute or join in the execution of any application for such
licenses and permits.

      (c) The Landlord hereby assigns to the Tenant all manufacturers' and other
warranties applicable to that portion of the Premises and the equipment and
systems therein that the Tenant is obligated to maintain.

      Section 15. Common Area Maintenance.

      (a) From and after the Commencement Date, Landlord, at its cost and
expense, shall maintain the Common Areas and the Center clean and in good repair
so that Tenant and its customers, guests, invitees, officers and employees can
use and enjoy the same. The obligation of Landlord pursuant hereto shall
include, but not be limited to, the management and maintenance of the Center and
the pylon structure of Tenant's identification sign (if the same is affixed to a
pylon sign used in common with Landlord or other tenants in the Center, but not
Tenant's advertising panels), regular cleaning of the Common Areas, removal of
trash and debris from the Common Areas, repairing the asphalt and concrete
portions of the Common Areas (including potholes, curbs and sidewalks),
repairing common utility lines and facilities, repairing storm drains, repairing
parking lot lights, maintaining the landscaped portion of the Common Areas
(including regular grass cutting), maintaining floodlights and other necessary
means of illumination sufficient to illuminate the Common Areas during twilight
and evening hours that Tenant's store is open for business and in operation,
prompt removal of snow and ice on every occasion where safety of the Common
Areas is impeded, employing traffic control personnel (such as off-duty police
personnel), and periodically restriping the parking area. Landlord covenants
that such maintenance and repair shall be planned and preventative maintenance
undertaken in order to maintain the Common Areas in good usable condition so as
to avoid breakdown of maintenance and avoidable costly repairs. Landlord shall
not in any manner change the size, location, nature, design or use of the Common
Areas as shown on the Site Plan without the prior written consent of Tenant,
which shall not be unreasonably withheld unless the proposed change would
involve additional buildings of any kind or reduce the number of parking spaces,
or otherwise materially and adversely affect the access to or visibility of the
Premises, in any of which cases Tenant's approval may be withheld in its sole
discretion.

      (b) The Tenant shall reimburse the Landlord its proportionate share of the
Landlord's "Common Area Maintenance Costs" (as hereinafter defined)

      (c) As used herein, the term "Common Area Maintenance Costs" means all
reasonable costs actually paid by the Landlord for maintaining and repairing the
Common Areas. The following items shall be specifically excluded from Common
Area Maintenance Costs: (i) depreciation on maintenance equipment; (ii) all Real
Estate Taxes; (iii) financing costs, including, but not limited to, any and all
of Landlord's payments for (1) loan principal or interest, together with
expenses, thereto related in connection with such financing or any refinancing
during the term of this Lease, (2) ground lease rent, or (3) similar payments;
(iv) salaries of Landlord's employees or agents contracted through outside
services or employed by Landlord who are not exclusively engaged in the
day-to-day maintenance of the Center; (v) profit or mark-up; (vi) maintenance,
repairs, services or improvements on the buildings or other tenant premises,
except




<PAGE>

that periodic painting of the exterior of the buildings shall be an allowable
expense; (vii) costs of outside management services; (viii) Merchants
Association costs; (ix) Center advertising, promotions and promotional
materials; (x) remodeling of the Center, or any costs for renovation or
improvement to the Common Areas required as a result of other tenants within the
Center remodeling, adding an addition or renovating; (xi) enforcement costs -
any and all of Landlord's costs to compel full performance under leases with all
prior, existing, and prospective tenants at the Center, .including, without
limitation all legal fees, costs and expenses to collect rental arrearages and
recover possession, or legal fees and expenses; (xii) leasing costs - any and
all of Landlord's costs of leasing space in the Center to all prior, existing
and prospective tenants, including, without limitation, consulting and marketing
fees, advertising expenses, brokerage commissions, legal fees, vacancy costs,
rent or other rent concessions, and/or refurbishment or improvement expenses;
(xiii) capital costs - any and all of the Landlord's capital costs,
improvements, alterations, repairs and/or replacements (including redesign and
retrofitting of existing capital improvements) to any part of the Center
including, but not limited to, resurfacing and/or replacement of paving; (xiv)
parking garage facilities - any and all of Landlord's expenses relating to any
parking garage facility or facilities on or about the property or comprising a
part of the Center; (xv) any improvement or construction charge which would
normally be and/or should have been in the original construction of the Center
and any repairs or replacements to the interior or exterior which are required
because of defective or faulty installation, materials, design or other latent
defects; (xvi) utility service and/or service lines (for any utility service)
repair, replacement, addition or maintenance charge except for those utility
service and lines within the Common Areas and are used by all tenants of the
Center; (xvii) any utility charge for usage of the Center if such usage is
charged to Tenant's Premises as a result of separate metering of the service or
services. In addition, any utility usage of the Common Areas which is as a
result of other tenants' extended operating hours shall be excluded, and the
cost of any utility, maintenance, service or repair provided to any other
premises in the Center; (xviii) any Common Areas Maintenance Costs incurred or
required prior to the commencement of this Lease; (xix) maintenance, repair or
replacement of Common Areas which is the result of Landlord's negligence in
performing preventative and/or planned maintenance which increases the costs to
maintain the Common Areas in good usable condition; (xx) off site repairs,
replacements or improvements; (xxi) any costs or expenses incurred by the
Landlord in bringing the Center, or any portion thereof, into compliance with
any applicable federal, state or local statutes, codes, ordinances or rules;
(xxii) reserves for anticipated future expenses; (xxiii) any bad debt loss, rent
loss or reserves for bad debts or rent loss; (xxiv) any cost related to the
operation of Landlord as an entity rather than the operating of the Center
including the cost and formation of the entity, internal accounting, legal
matters, preparation of tax returns, etc.; (xxv) any operating expense incurred
by Landlord with respect to other premises in the Center occupied or occupiable
by other tenants of the Center; and (xxvi) any expense for insured or uninsured
loss. Any allowable replacement of Common Areas which would constitute a
"capital expenditure" shall be amortized over the useful life of said
replacement and only the annual amortized portion of said cost shall be included
in Tenant's proportionate share of Common Areas Costs. The Tenant's
proportionate share of the Common Area Maintenance Costs, subject to Section (b)
above (the "Tenant's Share") shall be the amount of such costs multiplied by a
fraction, the numerator of which shall be the gross leasable area of the
Premises as set forth in paragraph 1 hereof and the denominator of which shall
be the gross leasable area of all buildings in the Center.

      (d) The Tenant shall pay the Tenant's Share to the Landlord in quarterly
payments in arrears. Within thirty (30) days after the end of each calendar
quarter, the Landlord shall give the Tenant a statement in reasonable detail,
together with all applicable invoices and receipts, setting forth the Common
Area Maintenance Costs for such quarter and the Tenant's Share. Subject to
subparagraph 15(b) above, the Tenant shall pay such amount to the Landlord
within thirty (30) days following receipt of such statement.

      Section 16. Landlord's Maintenance and Repairs. Landlord agrees that it
shall, at its sole cost and expense, at all times during the term of this Lease:

      (a) Keep, repair and maintain in good order and condition (including
replacement, if necessary), the roof (including all components thereof) and the
interior and exterior structural portions of the Premises, including, without
limitation, the exterior walls (painted, cleaned and/or sandblasted, but
excluding plate glass windows, doors, door closure devices, door frames,




<PAGE>

molding, locks and hardware); the window frames (but only to the extent repair
thereto is necessitated due to settling of the building or other structural
failure of the building); the foundation, structural parts of the floor; all
structural members; gutters, downspouts; duct work; automated sprinkler supply
line; and, electrical wiring from main circuit breaker panels (excluding the
circuit breaker) to the weatherboard and extending to the public utility power
sources. In addition, Landlord shall be responsible for "replacement" of major
equipment, including air condition and heating equipment, upon said equipment
being deemed unrepairable by a registered engineer selected by Tenant. Should
Landlord elect to renovate or remodel the exterior of said Premises, Landlord
may do so at Landlord's expense provided Tenant has approved the same.

      (b) Make any repair or replacements which become necessary as the
consequence (whether with or without any intervening act, negligence, or default
under this Lease of Landlord, its employees, agents, licensees, or contractors)
of a condition Landlord is required to correct, as in the case of damage to the
ceiling which results from a roof leak.

      (c) If Landlord fails to perform its maintenance obligations hereunder,
Tenant, after thirty (30) days written notice to Landlord (or upon such notice
as may be reasonable in the event of an emergency or in the event such repairs
are necessary in order to avoid damage to the Tenant's merchandise or
interference with the Tenant's business) may perform such unperformed
maintenance at the cost of the Landlord. Tenant may offset the cost of
performing the Landlord's maintenance obligations against the rent due
hereunder.

      (d) In the event it shall become necessary to make any emergency repair
which would otherwise be required to be made by Landlord, Tenant shall use its
best efforts to contact Landlord, and in the event of its inability to do so,
Tenant may proceed forthwith to have the repairs made and pay the cost thereof
ana promptly thereafter deliver a bill for such repairs to Landlord. In the
event the bill for such repairs is not paid within thirty (30) days after
Landlord's receipt of such bill, Tenant may deduct all of its costs and expenses
in connection therewith from up to one-half of each monthly installment of the
Fixed Rent thereafter becoming due until such sum shall be recovered in full.

      Section 17. Surrender of Premises. At the expiration of the term, the
Tenant shall surrender the Premises in good condition and repair, ordinary wear
and tear and damage by fire and casualty excepted.

      Section 18. Insurance.

      (a) The Tenant agrees that it will, at all times during the term of this
Lease, keep in full force and effect a policy of general liability insurance
with respect to the Premises and the business operated by the Tenant therein in
which the limits shall not be less than One Million Dollars ($1,000,000.00) in
respect of personal injury and not less than Five Hundred Thousand Dollars
($500,000.00) in respect of property damage.

      (b) The Landlord agrees that it will, at all times during the term of this
Lease, keep in full force and effect a policy of fire and extended coverage
("all-risk" form) insurance, insuring all improvements in the Center and the
Premises on full replacement cost basis, including:

      (i) With respect to the Center, extended coverage and vandalism and
malicious endorsement, in an amount not less than the full replacement cost of
the buildings and improvements thereon; and

      (ii) Sprinkler leakage insurance with respect to the Center (but not with
respect to Tenant's fixtures, furniture, equipment, stock, or inventory), in an
amount not less than one hundred percent (100%) of said replacement value.

      (c) Landlord shall maintain a policy or policies of general comprehensive
public and property damage insurance for damages on account of injuries to
property or person, including, death, sustained by any person or persons while
within said Common Areas (including but not limited to parking lot and
sidewalks) in the amount of Five Million Dollars ($5,000,000.00) combined single
limit protection.



<PAGE>

      Landlord is to notify Tenant of any changes in the liability policy or if
there is a termination of that policy without replacement. At Tenant's request,
but not more frequently than twice each calendar year, Landlord will furnish to
Tenant evidence of such insurance.

      (d) The party obligated to maintain the insurance policies hereunder
shall, within fifteen (15) days after request therefor, deliver to the other
party a certificate of insurance naming the other party as an additional insured
and evidencing that the insurance required hereunder is in full force and
effect. All insurance required hereunder may be carried under blanket policies
maintained by the party required to maintain such insurance.

      (e) The Landlord and the Tenant agree that with respect to any loss which
is required to be covered by insurance hereunder, the one carrying or required
to carry such insurance and suffering such loss releases the other of and from
any and all claims with respect to such loss. The Landlord and the Tenant
further agree that their respective insurance policies shall provide for an
appropriate waiver of subrogation reflecting this release.

      (f) The net proceeds of the insurance referred to in Section (b) shall be
applied to the restoration of the Premises. Any surplus proceeds shall belong to
the Landlord. Landlord agrees to convey any insurance proceeds received by
Landlord to a title company or lender mutually agreed to by the parties hereto
to hold in escrow for rebuilding if Landlord is required to rebuild.

      (g) Tenant shall be named as an additional insured in Landlord's public
liability and property damage insurance policies. Any insurance required to be
maintained by Landlord under this Section 18 may be maintained under a so-called
blanket policy or policies; may contain reasonable deductible provisions
customary for similar properties in the Center locale and consistent with sound
insurance practices; and, the insurance required to be maintained shall include
a clause waiving any right of subrogation against Tenant. Tenant shall pay to
Landlord monthly, as additional rent, Tenant's pro rata share of the premiums
for the insurance described above. Landlord shall charge Tenant for its pro rata
share of the foregoing insurance separately from Common Areas expense charges,
and Landlord shall not add an administrative charge as a part of such insurance
expense.

      (h) Landlord represents that the insurance premiums payable by Landlord
for the coverage enumerated herein shall be at rates which are commercially
reasonably, and comparable to the rates paid by other owners of similarly-sized,
first-class shopping centers for similar coverage in the metropolitan area. In
the event Tenant is able to locate an insurance carrier (or carriers) of
comparable quality and expertise as Landlord's carrier which will provide to
Landlord identical coverage at rates which are less than the premium rates
charged by Landlord's insurance carrier, Tenant's Proportionate Share of
insurance premiums shall be calculated based upon the rates quoted by Tenant's
proposed insurance carrier or carriers (whether or not Landlord elects to obtain
the insurance coverage required hereunder from such source or sources) which
Tenant shall make available to Landlord.

      Section 19. Compliance with Governmental Regulations.

      (a) Except as provided in subparagraph (c) below, the Tenant shall, at its
cost and expense, comply with the lawful requirements of all municipal, state,
federal and other applicable governmental authorities arising as a result of the
Tenant's particular use of the Premises.

      (b) Except as provided in subparagraph (c) below, the Landlord shall, at
its sole cost and expense, comply with all other lawful requirements of all
municipal, state, federal or other applicable governmental authorities arising
as a result of or in connection with the use and occupancy of the Premises and
the Common Areas or the failure of the Landlord's Work to comply with such
requirements.

      (c) As used in this subparagraph, the Americans with Disabilities Act
("ADA") shall mean the Americans with Disabilities Act of 1990, 42 U.S.C. e1201,
et. seq., and all implementing regulations. The Landlord and the Tenant intend
to comply with the ADA and the parties hereby agree to allocate responsibility
for such compliance as follows:



<PAGE>

      (i) Except as provided in subsection (ii) below, the Landlord shall have
responsibility to comply with the requirements of the ADA in all Common Areas
and in the Premises. Such compliance responsibility shall include, but shall not
be limited to, the obligation to remove architectural and communication barriers
in the Common Areas and the Premises where such removal is readily achievable.

      (ii) Except as provided in subsection (i) above, the Tenant shall have
responsibility to comply with the requirements of the ADA in the Premises to the
extent that such requirements require the Tenant to make interior nonstructural
changes or improvements to the Premises. Such responsibility shall include, but
shall not be limited to, the obligation to remove architectural and
communication barriers in the Premises created by the Tenant's trade fixtures
and leasehold improvements made by the Tenant where such removal is readily
achievable.

      (iii) If building alterations are commenced by Landlord and involve the
Common Areas, it shall be the Landlord's responsibility to comply with the
standards of accessibility required under the ADA and its implementing
regulations.

      (iv) Except as provided in subsection (v) below, if building alterations
are commenced by Tenant and involve the Premises, it shall be the Tenant's
responsibility to comply with the standards of accessibility required under the
ADA and its implementing regulations.

      (v) In the event the Landlord and the Tenant shall agree as part of the
terms and conditions of the Lease that the Landlord, at the Landlord's expense,
shall construct improvements on the Premises or any part thereof, it shall be
the Landlord's responsibility to comply with the standards of accessibility for
such new construction.

      (vi) Each party shall be responsible for the ADA compliance of its own
standards, criteria, administrative methods, eligibility criteria, policies,
practices and procedures.

      (vii) The Tenant shall be responsible for the provisions of any "auxiliary
aids and services," as such term is defined and used in the ADA, to its
customers, clients and patrons, if and to the extent required in connection with
the operation of its business or occupancy of the Premises.

      (viii) To the extent permitted by the ADA, if either the Landlord or the
Tenant can demonstrate that barrier removal is not readily achievable in an area
in which either party has responsibility for ADA compliance, the party
responsible for compliance, as herein provided, shall make use of alternatives
to barrier removal, if such alternatives are readily achievable.

      Section 20. Damage or Destruction.

      (a) If the Premises shall be damaged by fire or other casualty, the
Landlord shall collect the proceeds of such insurance and immediately and with
all due diligence commence to repair such damage at its expense. From the date
the damage occurs to the date the repairs are complete, the rent due hereunder
shall be reduced by the same percentage as the percentage of the Premises which,
in the Tenant's reasonable judgment, cannot be safely, economically or
practically used for the operation of the Tenant's business. Anything herein to
the contrary notwithstanding, if in the Tenant's reasonable judgment, any damage
or destruction to the Premises from any cause whatsoever cannot be repaired
within one hundred eighty (180) days following the date such damage occurs, the
Tenant may terminate this Lease by written notice to the Landlord given within
ninety (90) days following the occurrence of such damage. In addition, if any
damage or destruction to the Premises from any cause whatsoever cannot be
repaired, in the Landlord's reasonable judgment, within one hundred eighty (180)
days following the date such damage occurs and the Landlord elects not to repair
such damage, the Landlord shall have the right to terminate this Lease by
written notice to the Tenant given within ninety (90) days after the date such
damage occurred provided that no more than three (3) calendar years remain in
the term hereof. Notwithstanding the foregoing, if at the time the Landlord
gives such termination notice any of the renewal options provided for in the
Lease have not yet been exercised and the Tenant exercises a renewal option
within thirty (30) days after receipt of the Landlord's termination



<PAGE>

notice, then this Lease shall not be terminated and the Landlord shall promptly
commence restoration of the Premises.

      (b) In the event of a termination of the Lease pursuant to this paragraph,
all insurance proceeds payable by reason of damage under policies required to be
carried hereunder (excluding any insurance proceeds attributable to damage to
the Tenant's inventory, trade fixtures, business or leasehold improvements paid
for by the Tenant) shall be paid to the Landlord.

      Section 21. Condemnation. If all or any part of the Premises or the Center
shall be taken under the power of eminent domain, (i) this Lease shall terminate
as to the part so taken on the date on which the Tenant is required to yield
possession thereof, (ii) the Landlord shall make such repairs and alterations as
may be necessary in order to restore the part not taken to a condition
satisfactory for the Tenant's use, and (ii) the rent due hereunder shall be
reduced by the same percentage as the percentage of the Premises or the Center
so taken. If the portion so taken of the Premises, the Center or the Common
Areas or access thereto substantially impairs the Tenant's use of the Premises
or the economic viability of the business then being operated by the Tenant in
the Premises, the Tenant shall have the option to terminate this Lease at any
time following the date on which the Landlord or the Tenant is required to yield
possession of the area so taken.

      Section 22. Indemnification. Subject to the insurance requirements of
Section , the Landlord hereby indemnifies the Tenant, and the Tenant hereby
indemnifies the Landlord for any cost, damage or expense incurred or suffered by
the other as a result of the negligence or other act or omission of the
indemnifying party.

      Section 23. Quiet Enjoyment. Landlord warrants that Tenant shall have the
continuous and uninterrupted quiet enjoyment and exclusive possession of the
Premises and the non-exclusive right to use the Common Areas during the term of
this Lease. In the event that, at any time during the term hereof, Tenant's
quiet enjoyment and possession is deprived for more than sixty (60) days as a
result of a defect in the title of Landlord to the Center and/or the Premises,
and Landlord fails or refuses to cure such defect within such sixty (60) day
period, Tenant shall have the right, at its option, to terminate this Lease
without prejudice to any other right or remedy it may have at law or equity or
under this Lease.

      Section 24. Landlord's Covenants. The Landlord represents (i) that it has
the right to enter into this Lease, (ii) that it has good and marketable title
to the Premises, (iii) that the Premises, including without limitation, the roof
and HVAC system, are in good condition and repair, (iv) that the Premises is
properly zoned for use by the Tenant as a furniture store retail location, (v)
that the Landlord has obtained all necessary approvals and permits from
appropriate governmental authorities for the development of the Center in
accordance with the Site Plan and for the construction and occupancy of the
Premises by Tenant as a furniture store retail location, and (vi) that the
Landlord has entered into no leases, agreements or restrictive covenants that
would prohibit or interfere with the use of the Premises by the Tenant as a
furniture store retail location.

      Section 25. Hazardous Substances.

      (a) "Hazardous Substances", as used herein, shall mean all "hazardous
substances" (as defined in the Comprehensive Environmental Response Compensation
and Liability Act of 1980, 42 U.S.C. paragraph 9601 et seq. and the regulations
promulgated pursuant thereto, as amended [the "Act"]); any other toxic or
hazardous waste, material or substance as defined under any other federal state
or local law, rule, regulation or ordinance; petroleum products and any other
pollutant or environmental contaminant. "Remediate" or "remediation" as used
herein shall mean "remediate" or "remediation" as defined in the Act.

      (b) During the term of the Lease, the Tenant shall not: (i) release,
spill, leak, store, generate or accumulate any Hazardous Substances in, on or
under the Premises (except that the Tenant may store ordinary and necessary
quantities of cleaning, office and pest control supplies stored in a safe and
lawful manner and immaterial quantities of petroleum products may be discharged
from the operation of motor vehicles on the Premises), (ii) install any
underground storage tanks in, on or under the Premises; (iii) accumulate tires,
spent batteries, mining spoil,



<PAGE>

debris or other solid waste (except for rubbish in containers for normal
scheduled disposal in compliance with all applicable laws); or (iv) drain, fill
or modify wetlands on the Premises (except in compliance with all applicable
laws).

      (c) The Tenant shall notify the Landlord immediately upon the Tenant's
learning during the term of this Lease that: (i) any duty in subparagraph (b)
has been violated; (ii) there has been a release, discharge or disposal of any
Hazardous Substance on any property contiguous to the Premises such that
contamination of the Premises is possible; (iii) the Premises are the subject of
any third party claim or action, because of any environmental condition on or
originated from the Premises. The Tenant shall promptly provide the Landlord
with copies of all correspondence to or from third parties, including, but not
limited to, governmental agencies, regarding environmental conditions on or
originating from the Premises.

      (d) The Tenant shall indemnify and agrees to hold the Landlord harmless
from and against all costs, liability and damages suffered by the Landlord as a
result of a breach of the Tenant's duties hereunder.

      (e) The Landlord hereby represents and warrants that: (i) it has not used,
generated, discharged, released or stored any Hazardous Substances on, in or
under the Center and has received no notice and has no knowledge of the presence
in, on or under the Center of any such Hazardous Substances; (ii) there have
never been any underground storage tanks at the Center, whether owned by the
Landlord or its predecessors in interest; (iii) there are not and have never
been accumulated tires, spent batteries, mining spoil, debris or other solid
waste (except for rubbish and containers for normal scheduled disposal in
compliance with all applicable laws) in, on or under the Center; (iv) it has not
spilled, discharged or leaked petroleum products other than de minimis
quantities in connection with the operation of motor vehicles on the Center; (v)
there has been no draining, filling or modification of wetlands (as defined by
federal, state or local law, regulation or ordinance) at the Center; and (vi)
there is no asbestos or asbestos-containing material in the Premises. The
representations and warranties set forth in this subparagraph (e) shall apply to
any contiguous or adjacent property owned by the Landlord, whether or not the
Landlord is in possession.

      (f) If any such Hazardous Substances are discovered at the Center (unless
introduced by the Tenant, its agents or employees) or if any asbestos or
asbestos containing material is discovered in the Premises, and removal,
encapsulation or other remediation is required by applicable laws, the Landlord
immediately and with all due diligence and at no expense to the Tenant shall
take all measures necessary to comply with all applicable laws and to remove
such Hazardous Substances or asbestos from the Center and/or encapsulate or
remediate such Hazardous Substances or asbestos, which removal and/or
encapsulation or remediation shall be in compliance with all environmental laws
and regulations, and the Landlord shall repair and restore the Center at its
expense. From the date such Hazardous Substances are discovered at the Center to
the date such removal, encapsulation, remediation and restoration is complete,
the rent due hereunder shall be reduced by the same percentage as the percentage
of the Premises which, in the Tenant's reasonable judgment, cannot be safely,
economically or practically used for the operation of the Tenant's business.
Anything herein to the contrary notwithstanding, if in the Tenant's reasonable
judgment, such removal, encapsulation, remediation and restoration cannot be
completed within one hundred eighty (180) days following the date such Hazardous
Substances or asbestos are discovered, the Tenant may terminate this Lease by
written notice to the Landlord, which notice shall be effective on Landlord's
receipt thereof.

      (g) If any of the representations or warranties set forth in subparagraph
(e) are incorrect, misleading or breached, if any Hazardous Substances are
discovered at the Center (unless introduced by the Tenant, its agents or
employees) or if any asbestos or asbestos containing material is discovered in
the Premises, all costs incurred by the Tenant as the result of such breach or
discovery of such Hazardous Substances or asbestos shall be borne by the
Landlord, and the Landlord hereby indemnifies and agrees to hold the Tenant and
the Tenant's officers, directors, stockholders, employees and agents harmless
from and against all such costs, liability and damages including, without
limitation, all third-party claims (including sums paid in settlement thereof,
with or without legal proceedings) for personal injury or property damage, and
all judgments, compensatory and punitive damages, penalties, fines, costs,
losses, attorneys' fees



<PAGE>

(through all levels of proceedings), costs of remediation and removal,
consultants' and experts' fees, and all costs incurred in enforcing this
indemnity.

      (h) Beginning on the date of this Lease, the Tenant shall have the right
to conduct an environmental study of the Premises and the Center, and the
Landlord agrees to cooperate with and to provide access to the Center and the
Premises to the Tenant and its agents. If the Tenant discovers any Hazardous
Substances at the Center or any asbestos or asbestos containing materials in the
Premises as a result of such environmental study, the Tenant shall have the
right to terminate in accordance with paragraph 25 hereof.

      (i) The obligations of the Landlord and the Tenant hereunder shall survive
the expiration or earlier termination of this Lease and any extensions hereof.

      Section 26. Default by Tenant - Remedies of Landlord.

      (a) Each of the following shall be deemed a default by Tenant and a breach
of this Lease: (i) filing of a petition by Tenant for adjudication as a bankrupt
or an adjudication as a bankrupt or for reorganization or for an arrangement
under any federal or state statute, except a Chapter 11 Bankruptcy where rent is
being paid and the terms of the Lease are being complied with; (ii) involuntary
dissolution or liquidation of Tenant; (iii) appointment of a permanent receiver
or a permanent trustee of all or substantially all the property of Tenant, if
such appointment shall not be vacated within one hundred and twenty (120) days;
(iv) taking possession of the property of Tenant by any governmental officer or
agency pursuant to statutory authority for dissolution, rehabilitation,
reorganization or liquidation of the Tenant if such taking of possession shall
not be vacated within one hundred and twenty (120) days; (v) making by the
Tenant of an assignment for the benefit of creditors.

      If any event mentioned in this subdivision (a) shall occur, Landlord may
thereupon or at any time thereafter elect to cancel this Lease by thirty (30)
days notice to the tenant in possession and this Lease shall terminate on the
day in such notice specified with the same force and effect as if that date were
the date herein fixed for the expiration of the term of the Lease.

      (b) (i) Default in the payment of the base rent reserved for a period of
twenty (20) days after notice. In the event Tenant deducts from base rent or
other charges hereunder such sums expended by Tenant to remedy defects or make
repairs upon Landlord's failure to perform its obligations hereunder, such
action by Tenant shall not be construed as a default in the payment of fixed
rent or other charges hereunder.

      (ii) A default in the performance of any other covenant or condition of
this Lease on the part of the Tenant to be performed for a period of thirty (30)
days after notice. For purposes of this subdivision (b) (ii) hereof, no default
on the part of Tenant in performance of work required to be performed or acts to
be done or conditions to be modified shall be deemed to exist if steps shall
have been commenced by Tenant diligently after notice to rectify the same and
shall be prosecuted to completion with reasonable diligence, subject, however,
to unavoidable delays.

      (c) In cases of any such default under Section (b) and at any time
thereafter following the expiration of the respective grace periods above
mentioned, Landlord may serve a notice upon the Tenant electing to terminate
this Lease upon a specified date not less than twenty (20) days after the date
of serving of such notice and this Lease shall then expire on the date so
specified as if that date had been originally fixed as the expiration date of
the term herein granted; however, a default under Section (b) hereof shall be
deemed waived if such default is cured before the date specified for termination
in the notice of termination served on Tenant.

      If a default occurs subsequent to Tenant's assignment or subletting of the
Premises, Landlord may proceed to terminate this Lease in the manner described
above, provided: (i) a copy of the specified notices shall be served upon the
original Tenant herein as well as the party entitled to possession, and (ii)
Tenant shall be entitled to timely rectify any defaults occurring after such
assignment or subletting.



<PAGE>

      If Tenant assigns this Lease or sublets the Premises, Landlord, when
giving notice to said assignee or subtenant or any future assignee or subtenant
in respect of any default, shall also serve a copy of such notice upon the
original Tenant (herein called the "Original Tenant"), and no notice of default
shall be effective until a copy thereof is so given to the Original Tenant. The
Original Tenant shall have the same period after receipt of such notice to cure
such default as is given to Tenant therefor under this Lease. If this Lease
terminates or this Lease and the term hereof ceases and expires because of a
default of such assignee or subtenant after an assignment of this Lease or
sublease shall have been made, Landlord shall promptly give to the Original
Tenant notice thereof; and the Original Tenant shall have the option,
exercisable by the giving of notice by the Original Tenant to Landlord within
ten (10) days after receipt by the Original Tenant of Landlord's notice, to cure
any default and become Tenant under a new lease for the remainder of the term of
this Lease (including any renewal periods) upon all of the same terms and
conditions as then remain under this Lease, and such new lease shall commence on
the date of termination of this Lease, except that if the Original Tenant is
occupying less than ten percent (10%) of the Premises, Landlord may deliver to
the Original Tenant, together with Landlord's notice, a release as to all future
liability under this Lease.

      (d) In case this Lease shall be terminated as hereinbefore provided, or by
legal proceedings, Landlord or its agents may, immediately or any time
thereafter, re-renter and resume possession of the Premises or such part
thereof, and remove all persons and property therefrom, by a suitable action or
proceeding at law. No re-entry by Landlord shall be deemed an acceptance of a
surrender of this Lease.

      (e) In case this Lease shall be terminated as hereinbefore provided,
Landlord shall, in its own name but as agent for Tenant, if the Lease be not
terminated, or if the Lease be terminated in its own behalf, use its best
efforts to mitigate its damages and relet the whole or any portion of the
Premises for any sum which may be reasonable, giving due consideration to the
rents reserved herein and in connection with any such lease. Landlord may make
such changes in the character of the improvements on the Premises as may be
appropriate or helpful in effecting such lease. Landlord shall not in any event
be required to pay Tenant any surplus of any sums received by Landlord on a
reletting of the Premises in excess of the rent reserved in this Lease.

      (f) In case this Lease be terminated as provided in Section (c), subject
to rebuttal by Tenant, Landlord shall be entitled to recover from the Tenant,
the following: (i) a sum equal to all reasonable expenses, if any, including
reasonable counsel fees, incurred by Landlord in recovering possession of the
Premises, and all reasonable costs and charges for the care of said Premises
while vacant, which damages, less the avails of reletting, shall be due and
payable by Tenant to Landlord; and (ii) a sum equal to the amount of all rent
and other charges reserved under this Lease which shall be due and payable by
Tenant to Landlord on the several days on which the rent and other charges
reserved in this Lease would have become due and payable, less the greater of
(1) the fair rental value of the Premises, or (2) the net rent, if any,
collected by Landlord on reletting the Premises; that is, upon each of such days
Tenant shall pay to Landlord the amount of deficiency then existing after
receipt of credit for the fair rental value or net rent collected by Landlord.
Any excess amounts of rent collected by Landlord shall be credited against
future rent. Such net rent collected on reletting shall be computed by deducting
from the gross rents collected all necessary expenses incurred in connection
with reletting of the Premises or any part thereof, including reasonable
brokers' commissions.

      (g) Separate actions may be maintained by Landlord against Tenant from
time to time to recover any damages which, at the commencement of any such
action, have then or theretofore become due and payable to the Landlord under
this Section without waiting until the end of the then current term.

      Section 27. Landlord's Default. In the event that the Landlord defaults in
the performance of any of its obligations hereunder and such default continues
uncured (by the Landlord or any mortgagee of the Center) for thirty (30) days
after written notice from the Tenant to the Landlord (and to any mortgagee of
the Center for whom the Tenant has been provided a name and address) and such
default is reasonably capable of being cured within thirty (30) days, then, in
addition to all other rights and remedies provided by law, the Tenant shall have
the right to cure such default and offset the cost of such cure against the
rents and other amounts due hereunder; provided,



<PAGE>

however, that if such default is not reasonably capable of being cured within
thirty (30) days, the period for curing such default shall be extended for so
long as the Landlord (or its mortgagee) is proceeding with reasonable diligence
to cure such default. Provided further that in the case of an emergency, the
Tenant shall be required to give only such notice as is reasonable under the
circumstances.

      Section 28. Deleted

      Section 29. Nondisturbance. If this Lease or the Tenant's rights hereunder
are subordinate to the lien of any deed of trust, mortgage, or any other
security instrument or lien encumbering the Premises or the Center, or if the
Landlord leases pursuant to a ground lease or other lease any portion of the
Center, the Landlord shall obtain for the benefit of the Tenant (and without
cost to the Tenant) a nondisturbance agreement in form satisfactory to the
Tenant. Such nondisturbance agreement shall provide that if a foreclosure or
other proceeding is brought to enforce the lien of such deed of trust, mortgage,
lien or security instrument or a termination of any such ground or underlying
lease, then the ground lessor or holder of the note secured by any such deed of
trust or mortgage or the purchaser at such a foreclosure sale shall recognize
this Lease and all the Tenant's rights hereunder shall continue in full force
and effect.

      Section 30. Landlord's Construction Work.

      (a) Construction. Deleted

      (b) Parking Requirements. Landlord agrees that throughout the term of this
Lease and any renewal terms hereunder, parking facilities shall be provided by
Landlord so that the minimum number of parking spaces (for standard-size
American cars) in the Center shall be at least five and one-half (5.5) per one
thousand (1,000) square feet of gross leasable area.

      (c) Commencement of Construction. Landlord agrees to apply for any
required regulatory approvals as soon as reasonably possible and prosecute the
application with all due diligence. Landlord shall use its reasonable best
efforts to cause the contractor to complete such construction expeditiously.
Landlord shall furnish Tenant, within thirty (30) days after commencement of
construction, a schedule showing when different portions of construction are
scheduled to be started and completed according to the various subdivisions of
the Working Drawings.

      (d) Completion of Construction of Premises. Upon completion of
construction, Landlord shall satisfy the following conditions:

      (i) Landlord shall furnish Tenant with a temporary certificate of
occupancy and other necessary approvals which must be issued by the appropriate
governmental authorities for the occupancy and use of the Premises as
contemplated. Landlord agrees to provide a permanent certificate of occupancy as
soon as available in the ordinary course of the issuing authority's practice;

      (ii) The architect engaged fay Landlord shall execute his certificate of
completion of the Premises in a good and workmanlike manner substantially in
accordance with Landlord's Construction Work (Exhibit "D"), and the Working
Drawings and readiness for occupancy and deliver it to Tenant;

      (iii) Landlord agrees that Tenant shall have the right, at Tenant's
option, to inspect the Premises during and upon completion (and prior to Tenant
taking possession) to determine compliance by Landlord of Tenant Criteria
Drawings, Landlord's Construction Work (Exhibit "D"), and the Working Drawings.
Landlord agrees to correct or change those items which are deemed by Tenant as
not in compliance prior to Tenant taking possession;

      (iv) Landlord shall complete repair or replacement of all items presented
by Tenant to Landlord in the form of a "punch list" within thirty (30) days
after Tenant shall present such list to Landlord. Tenant shall present such
"punch list" to Landlord within a reasonable period, not to



<PAGE>

exceed ninety (90) days, after Landlord's completion of the Premises. Tenant
shall be permitted to cure such punch list at Landlord's expense and deduct the
cost of the same from its next rental installment due hereunder in the event
Landlord fails to complete such "punch list" within such thirty (30) day period.

      (e) Remainder of Improvements.

      (i) Except as presently exists or as otherwise provided herein or as shown
on Exhibit "A", no improvement or structure in the Center (including all outlot
pads) shall be of a height greater than twenty feet (20') above ground level nor
contain more than one (1) story or a basement or mezzanine. The foregoing
notwithstanding, Landlord shall have the right to construct one or more one (1)
story buildings in the area designated on Exhibit "A" as "Landlord's Future
Building Area" provided that there is sufficient parking to comply with local
zoning ordinances and Section (b) without Landlord's applying for a variance
therefrom. Landlord agrees that if Landlord builds on any part of "Landlord's
Future Building Area", as designated on the Site Plan - Exhibit "A", Landlord
will not apply for a variance from the local zoning ordinances for the purpose
of reducing the amount of space which must be provided for parking.

      (ii) In performing any construction work, repairs or maintenance in the
Center after Tenant has taken physical possession of the Premises, Landlord
shall use its reasonable efforts to prevent any interference with the operation
of the Center and the business of Tenant or any subtenant or licensee of Tenant.

      (f) Responsibility of Landlord for Construction. Deleted.

      (g) Guarantees. In addition to any guarantees provided to Tenant in
Exhibit "D", Landlord shall unconditionally guarantee all of Landlord's Work
against defective workmanship and materials for one (1) year from the
Commencement Date. Further, Landlord shall assign and pass through to Tenant all
manufacturer's warranties on all equipment provided to Tenant as part of
Landlord's construction obligations.

      Section 31. Holding Over. Any holding over after the expiration of the
term shall be construed to create a tenancy from month-to-month at the rent
herein specified (prorated on a monthly basis) and shall otherwise be on the
terms and conditions specified in this Lease as far as applicable.

      Section 32. For Rent Signs. The Landlord shall have the right during the
last sixty (60) days of the term, to place one for rent or for sale sign, not
exceeding two feet by two feet in size, on one window of the Premises. The
Tenant shall also allow the Landlord, or its agents, during such sixty (60) day
period to show the Premises to prospective tenants or purchasers during
reasonable business hours by prior appointment provided that there is no
interference with the conduct of the Tenant's business.

      Section 33. Successors. The covenants, conditions and terms contained in
this Lease shall bind and inure to the benefit of the Landlord, the Tenant and
their respective successors and assignees.

      Section 34. Waiver. The waiver by the Landlord or the Tenant of any breach
of any provision of this Lease or the failure by the Landlord or the Tenant to
insist upon the strict observance of any provisions shall not be deemed to be a
waiver of such provision or any subsequent breach thereof.

      Section 35. Notices. Any notice, demand, request or other instrument which
may be, or is required to be given under this Lease, shall be in writing and
delivered in person or by courier service or by United States certified mail,
postage prepaid, and shall be addressed:

      (a) if to the Landlord, at 1798 Frebis Ave., Columbus, Ohio 43206, or at
such other address as Landlord may designate by written notice; or



<PAGE>

      (b) if to the Tenant, at 1800 Moler Road, Columbus, Ohio 43207, or at such
other address as Tenant may designate by written notice.

      All notices shall be effective upon receipt or refusal of receipt.

      Section 36. Broker.

      (a) Deleted

      (b) No other broker has been involved in this transaction and if any
claims for brokerage commissions or fees are ever made in connection with this
transaction, each party shall indemnify and hold harmless the other from and
against any and all such claims or demands with respect to any brokerage fees or
agent's commissions or other compensation asserted by any person, firm or
corporation in connection with this Lease.

      Section 37. Memorandum of Lease. Landlord and Tenant agree not to record
this Lease, and instead agree to execute and acknowledge a Memorandum of Lease
for recording ("Memorandum"), attached to this Lease as Exhibit "H". Landlord
and Tenant agree that the Memorandum will be suitable for recording with the
County Recorder of the county in which the Center is situated and agree that
such Memorandum shall be recorded. Landlord shall be obligated at its expense to
record the memorandum and forward recorded copies to Tenant.

      Section 38. Estoppel Certificates. Each party shall, upon request from the
other at any time and from time to time, execute, acknowledge and deliver to the
other a written statement within twenty (20) days of the request therefor
certifying as follows: (i) that this Lease is unmodified and in full force and
effect (or, if there has been a modification, stating the nature thereof and
that the Lease is in full force and effect as modified); (ii) that to the best
of such party's knowledge, there are no uncured defaults on the part of the
other party (or if any such defaults exist, the specific nature and extent
thereof); (iii) the date to which any rent and other charges under the Lease
have been paid in advance, if any; and (iv) such other matters as such party may
reasonably request. Tenant acknowledges that any such statement requested by
Landlord and delivered by Tenant shall be relied upon by a prospective
purchaser, mortgagee or encumbrancer of the Premises or the Center or any
prospective assignee of any such mortgage or encumbrance thereof.

      Section 39. Landlord's Consent. In any case where Landlord's approval or
consent is required under the terms of this Lease, such consent or approval
shall be in writing and shall not be unreasonably or arbitrarily withheld by the
Landlord, nor shall the Landlord require the payment of any money before giving
such consent other than a reasonable charge for the processing of the
application for and preparation of the consent.

      Section 40. Marketable Title. Landlord hereby covenants and warrants (i)
that Landlord owns indefeasible title to the Center; (ii) there are no legal
impediments to the use by Tenant of the Premises as a furniture store in
accordance with the terms of this Lease, (iii) the Center is free and clear of
any and all liens and encumbrances, easements and restrictions, except ad
valorem taxes not due and payable and those matters set forth in Exhibit "C"
hereto, none of which shall encroach upon the Premises or hinder or interfere
with Tenant's use and enjoyment thereof in accordance with this Lease; (iv) that
Landlord has full right and is duly authorized to enter into the terms of this
Lease, and that the execution of this Lease in no way violates or breaches any
of the material terms and conditions of any of the documents forming the title
to the Center, or violates or breaches any of the terms and conditions of any
mortgages or other documents encumbering the Center; and (v) that the Tenant at
all times shall have unobstructed and adequate means of ingress and egress
between each of the entrances to the Premises and a public street or public
highway, as shown on Exhibit "A". Before tendering the Premises for fixturing,
the Landlord shall deliver to the Tenant a title insurance binder or opinion of
counsel evidencing the state of Landlord's title as of a date not earlier than
the date hereof and an opinion of counsel regarding the state of such title
shall be delivered to the Tenant sixty (60) days prior to acceptance of
possession by the Tenant. The aforementioned title insurance binder shall
contain as an exhibit any deed restrictions on the Premises or Center. Tenant
and Landlord covenant that the signatures to this Lease have full right and
power to enter into this Lease for the full Term and



<PAGE>

upon all conditions contained herein. This Lease shall become effective only
upon execution and delivery thereof by Landlord and Tenant.

      Section 41. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the state in which the Premises are
located.

      IN WITNESS WHEREOF, the parties have executed this Agreement of Lease
effective the date first set forth above.

Signed and acknowledged
in the presence of:

                                        LANDLORD:
                                        Jubilee Limited Partnership, an Ohio
                                        limited partnership

                                        By Schottenstein Professional Asset
                                             Management Company

/s/ [ILLEGIBLE]                     BY: /s/ Jay Schottenstein
----------------------                  ------------------------
/s/ Adriana Kenney                  ITS:
----------------------                  ------------------------

                                        TENANT:
                                        Schottenstein Stores Corporation d/b/a
                                        Value City Furniture

/s/ [ILLEGIBLE]                     BY: /s/ Jay Schottenstein
----------------------                  ------------------------
/s/ Adriana Kenney                  ITS:
----------------------                  ------------------------



<PAGE>

STATE OF OHIO      :
                   : SS.
COUNTY OF FRANKLIN :

      The foregoing instrument was acknowledged before me this 7th day of March,
1996 by Jay Schottenstein, Chairman of Schottenstein Professional Asset
Management Corp a Delaware Corporation, for and on behalf of said corporation.

                                                /s/ Nicole A. Feliciano
                                                -----------------------
                                                Notary Public

                             [NOTARIAL SEAL]        NICOLE A. FELICIANO
                                                NOTARY PUBLIC, STATE OF OHIO
                                             MY COMMISSION EXPIRES FEB 22, 1999

STATE OF OHIO      :
                   : SS.
COUNTY OF FRANKLIN :

      The foregoing instrument was acknowledged before me this 7th day of March,
1996 by Jay Schottenstein, Chairman of Schottenstein Professional Asset
Management Corp a Delaware Corporation, for and on behalf of said corporation.

                                                /s/ Nicole A. Feliciano
                                                -----------------------
                                                Notary Public

                             [NOTARIAL SEAL]        NICOLE A. FELICIANO
                                                NOTARY PUBLIC, STATE OF OHIO
                                             MY COMMISSION EXPIRES FEB 22, 1999