Document:

EX-10.6.1

 

Exhibit 10.6.1

FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

     This First Amendment to the Employment Agreement (“Amendment”) is made effective December 31,
2007, by and between DSW Inc., an Ohio corporation (the “Company”), and Derek Ungless (the
“Executive”);

     WHEREAS, the Company and the Executive are parties to that certain Employment Agreement
effective June 28, 2005 (the “Employment Agreement”);

     WHEREAS, the Company and the Executive have agreed to amend certain provisions of the
Employment Agreement;

     NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants herein contained,
and intending to be legally bound hereby, agree as follows:

1. Section 3.01 of the Employment Agreement is hereby amended by replacing “$350,000” in the first
sentence with the following: “$406,000”.

2. Section 3.06 of the Employment Agreement is hereby amended by inserting the following sentence
after the last sentence: “Reimbursement of expenses in one year will not affect the amount of
expenses that may be reimbursed in a later year.”.

3. Section 3.07 of the Employment Agreement is hereby amended by deleting Section 3.07 in its
entirety.

4. Section 3.08 of the Employment Agreement is hereby amended by replacing “3.08” with the
following: “3.07”.

5. Section 4.02[2] of the Employment Agreement is hereby amended by replacing “Vice President” in
the last sentence with the following: “Senior Vice President”.

6. Section 4.06[2] of the Employment Agreement is hereby amended by replacing “Vice President” in
the last sentence with the following: “Senior Vice President”.

7. Section 4.06[3] of the Employment Agreement is hereby amended by replacing “Vice President” in
the last sentence with the following: “Senior Vice President”.

8. Section 5.01 of the Employment Agreement is hereby amended by replacing subsection [1] in its
entirety with the following: “[1] Method of Payment. If the amount of any installment payments is
or becomes less than or equal to the applicable dollar amount under Section 402(g)(1)(B) of the
Internal Revenue Code of 1986, the Company may elect to pay such remaining installments as a lump
sum.”.

9. Section 5.06 of the Employment Agreement is hereby amended by inserting in the second sentence
following the clause “Section 5.04[6]” and immediately before the “,” the following: “and Section
10.09”.

10. Section 5.06 of the Employment Agreement is hereby amended by replacing subsection [1]

 

 

in its
entirety with the following: “[1] Base Salary. For 12 months beginning on the date of Involuntary
Termination Without Cause, the Company will continue to pay the Executive’s Base Salary at the rate
in effect on the effective date of Involuntary Termination Without Cause. If such amount exceeds
two times the annual compensation limit prescribed by Section 401(a)(17) of the Internal Revenue
Code of 1986 (the “Involuntary Termination Limit”), then the Company will pay the severance
obligation described in this Section 5.06[1] in two payment streams. The first payment stream will
be equal to the Involuntary Termination Limit, and the Company will pay this amount in 12 monthly
installments, beginning on the date of Involuntary Termination Without Cause. The amount of the
second payment stream will equal the amount in excess of the Involuntary Termination Limit. The
Company will pay this amount in six monthly installments beginning on the date that is six months
after the date of the Executive’s Involuntary Termination Without Cause. As a condition of this
salary continuation, the Executive is expected to promptly and reasonably pursue new employment.
If during the salary continuation period the Executive becomes employed either as an employee or a
consultant, the Executive’s Base Salary paid by the Company will be reduced by the amount of Base
Salary or consultant compensation paid by the new employer or entity for the remainder of the
salary continuation period. The Executive agrees to immediately notify the Company of any
subsequent employment or consulting work during the period of salary continuation.”.

11. Section 6.01 of the Employment Agreement is hereby amended by replacing “Executive Vice
President” in the last sentence with the following: “Senior Vice President”.

12. The Employment Agreement is hereby amended by inserting immediately after Section 10.08 the
following: “10.09 IRC Section 409A Compliance. The parties will administer this Agreement in a
good faith attempt to avoid imposition on Executive of penalties under Section 409A of the Internal
Revenue Code of 1986 and the guidance promulgated thereunder. If Executive is a “specified
employee” as defined under Section 409A, and to the extent any payments under this Agreement are
otherwise payable in the period beginning with the termination date and ending six months after the
termination date and would subject Executive to penalties under Section 409A, such payments will be
delayed, aggregated, and paid as soon as practicable after the date that is six months after the
date of termination.”.

13. Except as specifically amended by the provisions of this Amendment, all terms of the Employment
Agreement are unmodified and remain in full force and effect.

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 
	/s/ Derek Ungless

	By: 	/s/ Kathleen C. Maurer	 
	 

	 	 	 
	DEREK UNGLESS

	 	 Kathleen C. Maurer	 
	Execution Date:

	 	DSW Inc.	 
	 

	 	Execution Date:EX-10.43.1

 

Exhibit 10.43.1

ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT

     This Assignment and Assumption of Lease Agreement (“Assignment of Lease”) is made this 17th
day of January, 2008, between VALUE CITY DEPARTMENT STORES LLC, an Ohio limited liability company
(“Assignor”) having its principal offices located at 3241 Westerville Road, Columbus, Ohio 43224,
and DSW SHOE WAREHOUSE, INC., a Missouri corporation (“Assignee”) having its principal offices
located at 810 DSW Drive, Columbus, Ohio 43219.

RECITALS

     WHEREAS, Crossings at Hobart-I LLC, an Ohio limited liability company (“Master Landlord”) is
the fee owner of certain real property located in the City of Merrillville, State of Indiana,
legally described on Exhibit “A” hereto (the “Shopping Center Parcel”);

     WHEREAS, Master Landlord is the landlord under that certain Lease (“Master Lease”) dated as of
May 18, 1994, between Master Landlord and Service Merchandise Company, Inc. (“Service Merchandise”)
for 50,000 square feet of premises in the Shopping Center Parcel, which premises is a part of the
Shopping Center Parcel;

     WHEREAS, Service Merchandise filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code on March 27, 1999. Pursuant to that certain order by the United States Bankruptcy
Court for Tennessee, Service Merchandise and Jubilee Limited Partnership, an Ohio limited
partnership (“Landlord”) entered into a certain Assignment and Assumption Agreement dated July 2,
2002 (the “Assignment”) in which Service Merchandise assigned to Landlord and Landlord assumed from
Service Merchandise all of Service Merchandise’s right, title and interest as tenant under the
Master Lease;

     WHEREAS, Landlord and Assignor’s predecessor-in-interest, Value City Department Stores, Inc.
(pursuant to the merger dated December 29, 2004) entered into that certain Lease dated August 30,
2002 (the “Lease”) demising to VCDS the premises. The Lease is attached hereto and made a part
hereof as Exhibit “C”;

     WHEREAS, Assignor is the Tenant under a certain lease dated August 30, 2002 by and between
Assignor and Jubilee Limited Partnership, an Ohio limited liability partnership (“Landlord”) for a
portion of the Service Merchandise premises containing approximately 30,000 square feet of real
property having approximate dimensions of 120’ x 250’ (the “Premises”); and

     WHEREAS, Assignor licensed to Assignee’s predecessor-in-interest, Shonac Corporation, an Ohio
corporation (pursuant to that certain Assignment and Assumption Agreement dated October 23, 2002)
certain rights, title and interest of Assignor under the lease with respect to the premises, as
provided in the License Agreement (“License”) dated August 30, 2002 (the “Effective Date”);

     WHEREAS, Assignor and Assignee desire to change the legal instrument conveying Assignee’s
rights from a License Agreement to an Assignment of Lease Agreement as the parties desire that as
of the Effective Date, Assignor assign and Assignee assume all of Assignor’s right, title and
interest under the Lease, and that Assignee’s leasehold rights attach to and run with the land,
including the Premises, demised to Assignor under the Lease.

AGREEMENT

 

 

     NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged,
the parties agree as follows:

	 	1.	 	Assignment and Assumption: Commencing retroactively as of the
Effective Date, Assignor hereby sells, assigns, and conveys to Assignee all of Assignor’s
rights, title, and interest under the Lease. Assignee hereby accepts retroactively as of
the Effective Date this assignment and agrees to perform all obligations for which the
Tenant is responsible under the Lease.
	 
	 	2.	 	Representations and Warranties: Assignor warrants that the Lease is in full
force and effect, that neither Assignor nor Landlord is in breach thereof or in default
thereunder, that the Lease has not been modified or amended, except as stated above, and
that the Lease is valid and enforceable. Assignor further warrants that except as
provided in the License, it has not previously assigned the Lease or sublet the Premises,
that its interest in the Lease is unencumbered, and that Assignor has full power and
authority to assign its interest under the Lease.
	 
	 	3.	 	Indemnity: Assignee hereby agrees to indemnify and hold Assignor harmless
from all liability, loss, damage, and expense incurred by Assignor as a result of any
defaults by Assignee as tenant under the Lease which may have occurred or may occur at any
time after the Effective Date of this Agreement.
	 
	 	4.	 	Termination of License: The parties hereby agree that License shall
terminate and be of no force and effect as of the Effective Date as the parties intend
that that the terms of this Assignment of Lease agreement shall govern and control the
rights and obligations of Assignor and Assignee hereunder commencing retroactively as of
the Effective Date.
	 
	 	5.	 	Counterparts: This Assignment of Lease may be executed in counterparts, each
of which shall be deemed an original, and all of which shall constitute one document.

Signatures and acknowledgements on following pages.

 

 

Executed as of the day and year first above written.

	 	 	 	 	 
	Signed and acknowledged
in the presence of:	ASSIGNOR:

VALUE CITY DEPARTMENT STORES LLC,

an Ohio limited partnership

 	 
	 	BY: 	
/s/ James A. McGrady
 	 
	 	 	NAME: 	James A. McGrady 	 
	 	 	TITLE: 	Vice President 	 
	 
	 	ASSIGNEE:

DSW SHOE WAREHOUSE, INC.,

a Missouri corporation

 	 
	 	BY: 	/s/ William L. Jordan
 	 
	 	 	NAME: 	William L. Jordan 	 
	 	 	TITLE: 	Vice President and General Counsel 	 
	 

LANDLORD CONSENT:

Landlord hereby acknowledges and consents to the terms of this Assignment of Lease on the terms
and conditions described herein and hereby agrees that as of the Effective Date, Assignor is
hereby released of all of its obligations as tenant under the Lease and shall have no further
liability or obligations arising thereunder.

	 	 	 	 	 
	 	LANDLORD:

JUBILIEE LIMITED PARTNERSHIP, 
an Ohio limited
partnership

 	 
	 	BY: 	/s/ Benton E. Kraner
 	 
	 	 	NAME: 	Benton E. Kraner 	 
	 	 	TITLE: 	Senior Vice President

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