Document:

EX-10.1

 

Exhibit 10.1

ASSIGNMENT AND ASSUMPTION AGREEMENT

     This Agreement is made, this 8th day of January, 2001, between SHONAC CORPORATION, an
Ohio corporation having its principal offices located at 1675 Watkins Road, Columbus, Ohio 43207
(“Assignor”) and DSW SHOE WAREHOUSE, INC., a Missouri corporation having its principal offices
located at 1675 Watkins Road, Columbus, Ohio 43207 (“Assignee”).

RECITALS

     WHEREAS, Assignor is the Subtenant under a certain sublease dated June 12, 2000, by and
between Assignor and Jubilee Limited Partnership, an Ohio limited partnership (“Sublandlord”),
relative to approximately 25,955 square feet of real property known as Baileys Crossroads Shopping
Center, 5518 Leesburg Pike, Baileys Crossroads, Virginia 22041 (the “Lease”); and

     WHEREAS, Assignee is a wholly owned subsidiary of Assignor.

AGREEMENT

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

1. Assignor hereby sells, assigns, and conveys to Assignee all of Assignor’s rights, title,
and interest under the Lease.

2. Assignee hereby accepts this assignment and agrees to perform all obligations for which
the Tenant is responsible under the Lease.

3. 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 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.

4. Assignor hereby agrees to indemnify and hold Assignee harmless from all liability, loss,
damage, and expense incurred by Assignee as a result of any defaults by Assignor as Tenant
under the Lease which may have occurred or may occur at any time prior to the effective date of
this Agreement, and from all liability, loss, damage, and expense that Assignee may suffer by
reason of any challenge to the validity or enforceability of the Lease or to any of the terms
thereof.

5. 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 occur at any time after the effective date of this agreement.

6. In no event will this Assignment and Assumption Agreement operate to release Assignor
from its primary obligations and liabilities under the Lease.

Executed as of the day and year first above written.

 

 

	 	 	 	 	 	 	 
	Signed and acknowledged in the
presence of:	 	 	 	ASSIGNOR:
	 
	 	 	 	 	 	 
	 	 	 	 	SHONAC CORPORATION
	 
	 	 	 	 	 	 
	/s/ Christy Cuschleg

	 	 	 	BY:
	 	/s/ Jeffrey P. Meena
	 

	 	 	 	 	 	 
	/s/ Tracy L Snow

	 	 	 	NAME:
	 	Jeffrey P. Meena
	 

	 	 	 	 	 	 
	

	 	 	 	TITLE:
	 	Vice President-Controller/Asst. Secy.
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 	 	 	 	DSW SHOE WAREHOUSE, INC.
	 
	 	 	 	 	 	 
	/s/ Christy Cuschleg

	 	 	 	BY:
	 	/s/ John C. Rossler
	 

	 	 	 	 	 	 
	/s/ Tracy L Snow

	 	 	 	NAME:
	 	John C. Rossler
	 

	 	 	 	 	 	 
	

	 	 	 	TITLE:
	 	President
	

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 	 	 
	

	 	 	)	 	 	SS:
	 	 
	COUNTY OF FAIRFIELD

	 	 	)	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 4th day of January, 2001, by
Jeffrey P. Meena, Vice President-Controller/Assistant Secretary, of SHONAC CORPORATION, an Ohio
corporation, on behalf of the corporation.

	 	 	 
	

	 	/s/ Christy Cuschleg
	

	 	 
	

	 	Notary Public
	

	 	Christy Cuschleg
	

	 	Commission expires 8/2/04

	 	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 	 	 
	

	 	 	)	 	 	SS:
	 	 
	COUNTY OF FAIRFIELD

	 	 	)	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 8th day of January, 2001, by
John C. Rossler, President, of DSW SHOE WAREHOUSE, INC., a Missouri corporation, on behalf of the
corporation.

	 	 	 
	

	 	/s/ Christy Cuschleg
	

	 	 
	

	 	Notary Public
	

	 	Christy Cuschleg
	

	 	Commission expires 8/2/04

 

 

SUBLEASE

	 	 	 
	SUBLESSOR:

	 	JUBILEE LIMITED PARTNERSHIP,
	

	 	an Ohio Limited partnership
	

	 	1798 FREBIS AVENUE
	

	 	COLUMBUS, OHIO 43206-3764
	 
	 	 
	SUBLESSEE:

	 	SHONAC CORPORATION,
	

	 	an Ohio Corporation
	

	 	1675 WATKINS ROAD
	

	 	COLUMBUS, OHIO 43207
	 
	 	 
	PREMISES:

	 	5516 LEESBURG PIKE
	

	 	BAILEYS CROSSROADS
	

	 	FAIRFAX,VA 220417

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1
	 	 	 	PREMISES
	 
	 	 	 	 	 	 
	SECTION 2
	 	 	 	TERM
	 
	 	 	 	 	 	 
	SECTION 3
	 	 	 	COMMENCEMENT DATE
	 
	 	 	 	 	 	 
	SECTION 4
	 	 	 	RENEWAL OPTIONS
	 
	 	 	 	 	 	 
	SECTION 5
	 	 	 	MINIMUM RENT
	 
	 	 	 	 	 	 
	SECTION 6
	 	 	 	PERCENTAGE RENT
	 
	 	 	 	 	 	 
	SECTION 7 INTENTIONALLY DELETED
	 	 	SECURITY DEPOSIT
	 
	 	 	 	 	 	 
	SECTION 8
	 	 	 	RIGHT TO REMODEL
	 
	 	 	 	 	 	 
	SECTION 9
	 	 	 	UTILITIES
	 
	 	 	 	 	 	 
	SECTION 10
	 	 	 	GLASS
	 
	 	 	 	 	 	 
	SECTION 11
	 	 	 	PERSONAL PROPERTY
	 
	 	 	 	 	 	 
	SECTION 12
	 	 	 	RIGHT TO MORTGAGE
	 
	 	 	 	 	 	 
	SECTION 13
	 	 	 	SUBLEASE OR ASSIGNMENT
	 
	 	 	 	 	 	 
	SECTION 14
	 	 	 	COMMON AREAS
	 
	 	 	 	 	 	 
	SECTION 15
	 	 	 	OPERATION OF COMMON AREAS
	 
	 	 	 	 	 	 
	SECTION 16
	 	 	 	COMMON AREA
MAINTENANCE, SUBLESSEE’S SHARE
	 
	 	 	 	 	 	 
	SECTION 17
	 	 	 	EMINENT DOMAIN
	 
	 	 	 	 	 	 
	SECTION 18
	 	 	 	SUBLESSEE’S TAXES
	 
	 	 	 	 	 	 
	SECTION 19
	 	 	 	RISK OF GOODS
	 
	 	 	 	 	 	 
	SECTION 20
	 	 	 	USE AND OCCUPANCY
	 
	 	 	 	 	 	 
	SECTION 21
	 	 	 	NUISANCES
	 
	 	 	 	 	 	 
	SECTION 22
	 	 	 	WASTE AND REFUSE REMOVAL
	 
	 	 	 	 	 	 
	SECTION 23
	 	 	 	FIRE AND CASUALTY
	 
	 	 	 	 	 	 
	SECTION 24
	 	 	 	SUBLESSOR REPAIRS
	 
	 	 	 	 	 	 
	SECTION 25
	 	 	 	SUBLESSEE’S REPAIRS
	 
	 	 	 	 	 	 
	SECTION 26
	 	 	 	COVENANT OF PEACEFUL POSSESSION
	 
	 	 	 	 	 	 
	SECTION 27
	 	 	 	SUBLESSEE’S
AND SUBLESSOR’S INSURANCE; INDEMNITY
	 
	 	 	 	 	 	 
	SECTION 28
	 	 	 	REAL ESTATE TAXES
	 
	 	 	 	 	 	 
	SECTION 29
	 	 	 	SUBLESSEE’S INSURANCE CONTRIBUTION
	 
	 	 	 	 	 	 
	SECTION 30
	 	 	 	FIXTURES

 

 

	 	 	 	 	 	 	 
	SECTION 31
	 	 	 	SURRENDER
	 
	 	 	 	 	 	 
	SECTION 32
	 	 	 	HOLDING OVER
	 
	 	 	 	 	 	 
	SECTION 33
	 	 	 	NOTICE
	 
	 	 	 	 	 	 
	SECTION 34
	 	 	 	DEFAULT
	 
	 	 	 	 	 	 
	SECTION 35
	 	 	 	WAIVER OF SUBROGATION
	 
	 	 	 	 	 	 
	SECTION 36
	 	 	 	LIABILITY OF SUBLESSOR; EXCULPATION
	 
	 	 	 	 	 	 
	SECTION 37
	 	 	 	RIGHTS CUMULATIVE
	 
	 	 	 	 	 	 
	SECTION 38
	 	 	 	MITIGATION OF DAMAGES
	 
	 	 	 	 	 	 
	SECTION 39
	 	 	 	SIGNS
	 
	 	 	 	 	 	 
	SECTION 40
	 	 	 	ENTIRE AGREEMENT
	 
	 	 	 	 	 	 
	SECTION 41
	INTENTIONALLY DELETED	 	 	SUBLESSOR’S LIEN
	 
	 	 	 	 	 	 
	SECTION 42
	 	 	 	BINDING UPON SUCCESSORS
	 
	 	 	 	 	 	 
	SECTION 43
	 	 	 	HAZARDOUS SUBSTANCES
	 
	 	 	 	 	 	 
	SECTION 44
	 	 	 	TRANSFER OF INTEREST
	 
	 	 	 	 	 	 
	SECTION 45
	 	 	 	ACCESS TO PREMISES
	 
	 	 	 	 	 	 
	SECTION 46
	 	 	 	HEADINGS
	 
	 	 	 	 	 	 
	SECTION 47
	 	 	 	NON-WAIVER
	 
	 	 	 	 	 	 
	SECTION 48
	 	 	 	SHORT FORM SUBLEASE
	 
	 	 	 	 	 	 
	SECTION 49
	 	 	 	REFERENCE TO MASTER LEASE
	 
	 	 	 	 	 	 
	SECTION 50
	 	 	 	ESTOPPEL CERTIFICATE

 

 

SUBLEASE

     THIS AGREEMENT OF SUBLEASE, made this 12 day of June, 2000, by and between
Jubilee Limited Partnership, an Ohio limited partnership (hereinafter referred to as “Sublessor”),
with offices at 1798 Frebis Avenue, Columbus, Ohio 43206-3764 and Shonac Corporation, an Ohio
corporation, dba DSW Shoe Warehouse, with offices at 1675 Watkins Road, Columbus, Ohio 43207
(hereinafter referred to as “Sublessee”).

WITNESSETH:

SECTION 1. PREMISES

     (a) Sublessor, in consideration of the rents to be paid and covenants and agreements to
be
performed by Sublessee, does hereby sublease unto Sublessee the premises (hereinafter referred
to as the
“premises” or “demised premises”) in the Baileys Crossroads Shopping Center (hereinafter
referred to as
the “Shopping Center”), on the northeast side of Leesburg Pike at 5516 Leesburg Pike, Baileys
Crossroads, in the City of Fairfax, and State of Virginia. The location, size, and area of
the demised
premises and of the Shopping Center shall be substantially as shown on Exhibit “A” attached
hereto and
made a part hereof. A legal description of the Shopping Center is shown on Exhibit “A-l”
attached
hereto and made a part hereof. Sublessee shall not change the configuration of the Shopping
Center or
consent to any proposed change by Landlord which requires Sublessor’s consent under the Master
Lease
(as those terms are defined in Section 49 below) so as to materially adversely affect access
to, visibility
of or parking for the premises without the prior written consent of Sublessee.

     (b) The demised premises shall have a ground floor area of approximately 25,955 square feet.

SECTION 2. TERM

     The term of this Sublease shall be for a period of approximately nine (9) years, beginning on
the commencement date (as hereinafter defined), and expiring on November 30, 2009.

SECTION 3. COMMENCEMENT DATE

     (a) As herein used, the phrase “commencement date” shall mean the earlier of: (i) the day
Sublessee opens for business in the demised premises, or (ii) ninety (90) days after Sublessor has
delivered to Sublessee possession of the demised premises as same are to be substantially
completed by Sublessor and ready for occupancy, as in (b) below. The anticipated delivery date is
within six (6) months of a fully executed sublease agreement. Sublessee shall not be required to
accept delivery between 11-01-00 and 01-31-01. Should Sublessee not receive possession by 01-31-01, Sublessee at its

4

 

option may terminate this sublease agreement by notice to Sublessor at any time prior to delivery
of possession of the demised premises to Sublessee. Notwithstanding the above, Sublessor shall give
Sublessee at least sixty (60) days advance written notice of its anticipated delivery date, so that
Sublessee might plan accordingly.

     (b) Possession of the demised premises shall not be deemed to have been given to Sublessee
unless the demised premises are ready for the installation of Sublessee’s fixtures and
finishing work by Sublessee, and are free of any violation of laws, ordinances, regulations and building
restrictions relating to the possession or use of or construction upon the demised premises. Sublessor’s work is
listed on Exhibit “B”, attached hereto and made a part hereof.

     (c) Prior to the date on which possession is delivered to Sublessee as aforesaid, Sublessee
shall have the right to enter the demised premises at its own risk rent-free for the purpose of
preparing for its
occupancy, installing fixtures and equipment, and receiving merchandise and other property,
provided
that it does not unreasonably interfere with Sublessor’s construction activities. All work
other than that
to be performed by Sublessor is to be done by Sublessee within ninety (90) days after the date
possession of the demised premises has been delivered to Sublessee, at Sublessee’s expense in
accordance with the provisions of this Sublease and as set forth in the schedule entitled
Description of
Sublessee’s Work and attached hereto as Exhibit “C” and made a part hereof.

     (d) From the date upon which the demised premises are delivered to Sublessee for its work
until
the commencement date of the sublease term, Sublessee shall observe and perform all of its
obligations
under this Sublease (except its obligation to operate and to pay minimum rent, percentage
rent, its pro
rata share of maintenance costs, provided for in Section 16 hereof, its pro rata share of real
estate taxes
provided for in Section 28 hereof and its prorata share of insurance provided for in Section
29 hereof).
In the event Sublessee fails to open for business within ninety (90) days after the date
possession of the
demised premises has been delivered to Sublessee, Sublessor, in addition to any and all other
available
remedies, may require Sublessee to pay to Sublessor, in addition to all other rent and charges
herein, as
liquidated damages and not as a penalty, an amount equal to one-one hundred eightieth (1/180)
of the
annual minimum rent for each day such failure to open continues.

SECTION 4. RENEWAL OPTIONS

     (a) Provided Sublessor has exercised its renewal option (of which notice shall also
be given to

5

 

Sublessee) as granted in the Master Lease; and provided Sublessee has fully complied with all of
the terms, provisions, and conditions on its part to be performed under this Sublease and is not in
default under this Sublease, Sublessee may, by giving written notice to the Sublessor at least
fifteen (15) months on or before the expiration of the original term of this Sublease, extend such
term for a period of ten (10) year(s) upon the same covenants and agreements as are herein set
forth, except that the minimum rent during the first renewal term shall be increased to Forty-Seven
Thousand Five Hundred Eighty Four and 17/100 Dollars ($47,584.17) each month.

     (b) Provided Sublessor has exercised its renewal option as granted in, the Master Lease;
and
provided Sublessee has fully complied with all of the terms, provisions and conditions on its part
to be performed under this Sublease, is not in default under this Sublease and has exercised its
first option to renew hereunder, Sublessee may, by giving written notice to the Sublessor at least
fifteen (15) months on or before the expiration of the first extended term of this Sublease, extend
such term for an additional period of ten (10) year(s) upon the same covenants and agreements as
the first extended term except that the minimum rent (as increased pursuant to subparagraph (a)
above) during this second renewal term shall be further increased Fifty-One Thousand Nine Hundred
Ten Dollars ($51,910.00) each month.

SECTION 5. MINIMUM RENT

     (a) Sublessee agrees to pay to Sublessor, as minimum rent for the demised premises, equal
consecutive monthly installments of: (i) Forty-Three Thousand Two Hundred Fifty Eight and
33/100
Dollars ($43,258.33), commencing on the commencement date, and continuing on the first day of
each
calendar month during years one (1) through five (5) of the initial term of this Sublease;
(ii) Forty-Five
Thousand Four Hundred Twenty One and 25/100 Dollars ($45,421.25) each calendar month during
years six (6) through the remainder of the initial term of this Sublease. All such rental
shall be payable
to Sublessor in advance, without prior written notice or demand and without any right of
deduction,
abatement, counterclaim or offset whatsoever (unless specifically permitted in this sublease
agreement).
As used in this Sublease, the term “minimum rent” means the minimum rent set forth in this
subparagraph (a).

     (b) If the Sublease term shall commence on a day other than the first day of a calendar month
or
shall end on a day other than the last day of a calendar month, the minimum rental for such
first or last
fractional month shall be such proportion of the monthly minimum rental as the number of days
in such
fractional month bears to the total number of days in such calendar month.

6

 

     (c) Until further notice to Sublessee, all rental payable under this Sublease shall be payable
to
Sublessor and mailed to Sublessor at 1798 Frebis Avenue, Columbus, Ohio 43206-3764.

     (d) In the event any sums required hereunder to be paid are not received on or before the
fifth
(5th) calendar day after the same are due, then, for each and every late payment, Sublessee
shall
immediately pay, as additional rent, a service charge equal to Fifty Dollars ($50.00).
Sublessee shall
pay an additional late charge in the same amount for each additional seven (7) day period
after the same
are due until such payment has been received by Sublessor. The foregoing late charge is in
addition to
all default remedies of Sublessor pursuant to Section 34 below.

SECTION 6. PERCENTAGE RENT

     (a) Sublessee shall pay to Sublessor as additional rent, a percentage rental of two
percent (2%)
annually of the “gross receipts” that exceed: (i) $12,977,500.00 during Yrs. 1-5; (ii)
$13,626,375.00
during Yrs. 6 through the remainder of the initial term; (iii) $14,275,251.00 during the first
renewal
term; and (iv) $15,573,000.00 during the second renewal term.

     (b) For purposes hereof, a sublease year shall consist of a consecutive twelve (12) calendar
month period commencing on the commencement of the term of this Sublease; provided, however,
that
if this Sublease commences on a day other than the first day of a calendar month, then the
first sublease
year shall consist of such fractional month plus the next succeeding twelve (12) full calendar
months,
and the last sublease year shall consist of the period commencing from the end of the
preceding sublease
year and ending with the end of the term of the Sublease, whether by expiration of term or
otherwise. In
the event percentage rental shall commence to accrue on a day other than the first day of a
sublease year,
the percentage rental for such sublease year shall be adjusted on a pro rata basis, based upon
the actual
number of days in such sublease year.

     (c) Each sublease year shall constitute a separate accounting period, and the computation of
percentage rental due for any one period shall be based on the gross receipts for such
sublease year.

     (d) The term “gross receipts” as used in this Sublease is hereby defined to mean the gross
dollar
aggregate of all sales or rental or manufacture or production of merchandise and all services,
income and
other receipts whatsoever of all business conducted in, at or from any part of the demised
premises,
whether for cash, credit, check, charge account, gift or merchandise certificate purchased or
for other
disposition of value regardless of collection. Should any departments, divisions or parts of
Lessee’s
business be conducted by any subleases, concessionaires, licensees, assignees or others, then
there shall

7

 

be included in Lessee’s “gross sales,” all “gross sales” of such department, division or part,
whether the receipts be obtained at the demised premises or elsewhere in the same manner as if
such business had been conducted by Lessee. Gross Receipts shall exclude the following: (i) any
amount representing sales, use, excise or similar taxes; (ii) the amount of refunds, exchanges or
returns by customers or allowances to customers.

     (e) The percentage rental, if any, shall be paid within ninety (90) days after the end of each
sublease year, accompanied by a statement in writing signed by Sublessee setting forth its
gross receipts
from the sale of all items for such sublease year. Sublessee shall keep at its principal
executive offices,
where now or hereafter located, true and accurate accounts of all receipts from ‘the demised
premises.
Sublessor, its agents and accountants, shall have access to such records for the two (2) prior
Lease Years
at any and all times during regular business hours for the purpose of examining or auditing
the same.
Sublessee shall also furnish to Sublessor any and all supporting data in its possession
relating to gross
sales and any deductions therefrom as Sublessor may reasonably require. Sublessor agrees to
keep any
information obtained therefrom confidential, except as may be required for Sublessor’s tax
returns, or in
the event of litigation or arbitration where such matters are material.

     (f) Sublessee shall at all times maintain accurate records which shall be available for
Sublessor’s
inspection at any reasonable time.

     (g) If Sublessor, for any reason, questions or disputes any statement of percentage rental
prepared
by Sublessee, then Sublessor, at its own expense, may employ such accountants as Sublessor may
select
to audit and determine the amount of gross sales for the period or periods covered by such
statements. If
the report of the accountants employed by Sublessor shall show any additional percentage rents
payable
by Sublessee, then Sublessee shall pay to Sublessor such additional percentage rents plus
interest at one
(1) point over the prime rate, commencing on the date such percentage rentals should have been
paid,
within thirty (30) days after such report has been forwarded to Sublessee, unless Sublessee
shall, within
said thirty (30) day period, notify Sublessor that Sublessee questions or disputes the
correctness of such
report. In the event that Sublessee questions or disputes the correctness of such report, the
accountants
employed by Sublessee and the accountants employed by Sublessor shall endeavor to reconcile
the
question(s) or dispute(s) within thirty (30) days after the notice from Sublessee questioning
or disputing
the report of Sublessor’s accountants. In the event that it is finally determined by the
parties that
Sublessee has understated percentage rent for any Sublease year by three percent (3%) or more,

8

 

Sublessee shall pay the reasonable cost of the audit. Furthermore, if Sublessee’s gross sales
cannot be verified due to the insufficiency or inadequacy of Sublessee’s records, then Sublessee
shall pay the cost of the audit. The cost of any audit resulting from failure to report
percentage rent after written notification of default shall be at the sole cost of Sublessee.

SECTION 7. SECURITY DEPOSIT-DELETED 

  SECTION 8. RIGHT TO REMODEL

     Sublessee may, at Sublessee’s expense, make non-structural repairs and alterations to the
interior of the demised premises in accordance with all laws and in the exercise of good business
judgement. Subject to any consent requirements of Landlord under the Master Lease, Sublessee may
not make any structural or exterior changes to the premises without the prior written consent of
Sublessor, which consent shall not be unreasonably withheld or delayed. Any structural alteration
may not diminish the market value of the demised premises. All plans for such remodeling shall be
submitted to Sublessor for endorsement of its approval prior to commencement of work. Upon
Sublessor’s request, Sublessee shall be obligated, if it remodels and/or alters the demised
premises, to restore the demised premises upon vacating the same. Sublessee will indemnify and save
harmless the Sublessor from and against all mechanics liens or claims by reason of repairs,
alterations or improvements which may be made by Sublessee to the demised premises. Inasmuch as any
such alterations, additions or other work in or to the demised premises may constitute or create a
hazard, inconvenience or annoyance to the public and other Sublessees in the Shopping Center,
Sublessee shall, if so directed in writing by Sublessor, erect barricades, temporarily close the
demised premises, or affected portion thereof, to the public or take whatever measures are
necessary to protect the building containing the demised premises, the public and the other
Sublessees of the Shopping Center for the duration of such alterations, additions or other work. If
Sublessor determines, in its sole judgment, that Sublessee has failed to take any of such necessary
protective measures, Sublessor may do so and Sublessee shall reimburse Sublessor for the cost
thereof within ten (10) days after Sublessor bills Sublessee therefor.

     All such work shall be performed lien free by Sublessee. In the event a mechanic’s lien is
filed against the premises or the Shopping Center, Sublessee shall discharge or bond off same
within ten (10) days from the filing thereof. If Sublessee fails to discharge said lien, Sublessor
may bond off or pay same without inquiring into the validity or merits of such lien, and all sums
so advanced shall be paid on demand by Sublessee as additional rent.

9

 

SECTION 9. UTILITIES

     The Sublessee agrees to be responsible and pay for all public utility services rendered or
furnished to the demised premises during the term hereof, including, but not limited to, heat,
water, gas, electric, steam, telephone service and sewer services, together with all taxes, levies
or other charges on such utility services when the same become due and payable Sublessor will use
its best efforts to separately meter utilities. Sublessor shall provide, or cause to be provided,
all such utility services to the premises. Sublessee shall be responsible for all utility services
and costs inside the premises. Should any utility service not be separately metered, then Sublessee
shall be responsible for its prorata share thereof as determined from time to time and billed by
Sublessor. Sublessor shall not be liable for the quality or quantity of or interference involving
such utilities unless due directly to Sublessor’s negligence.

     During the term hereof or any renewal or extension period, whether the demised premises are
occupied or unoccupied, Sublessee agrees to maintain heat sufficient to heat the demised premises
so as to avert any damage to the demised premises on account of cold weather.

     Sprinkler systems, if any, located in Sublessee’s area shall be maintained in accordance with
National Fire Protection Association standards to ensure proper operation. Sprinkler control valves
(interior and exterior) located in Sublessee’s area shall be monitored by supervisory alarm
service. In the event fifty percent (50%) or more of the total number of sprinkler heads require
replacement at any one time as part of ordinary maintenance, such cost shall be fifty percent (50%)
borne by Sublessor and fifty percent (50%) borne by Sublessee. Sublessee shall replace all
sprinkler heads due to painting or environmental exposure from Sublessee’s operations. All other
cost of maintaining the sprinkler system in Sublessee’s area shall be paid by the Sublessee.

SECTION 10. GLASS

     The Sublessee shall maintain the glass part of the demised premises, promptly replacing any
breakage and fully saving the Sublessor harmless from any loss, cost or damage resulting from such
breakage or the replacement thereof.

SECTION 11. PERSONAL PROPERTY

     The Sublessee further agrees that all personal property of every kind or description that may
at any time be in or on the demised premises shall be at the Sublessee’s sole risk, or at the risk
of those

10

 

claiming under the Sublessee, and that the Sublessor shall not be liable for any damage to
said property or loss suffered by the business or occupation of the Sublessee caused in any manner
whatsoever.

SECTION 12. RIGHT TO MORTGAGE

     (a) Sublessee acknowledges that Landlord, pursuant to the Master Lease, has reserved the right
to subject and subordinate this Sublease at all times to the lien of any deed of trust, mortgage
or mortgages now or hereafter placed upon Landlord’s interest in the demised premises; provided, however,
that no default by Landlord, under any deed of trust, mortgage or mortgages, shall affect
Sublessee’s rights under this Sublease, so long as Sublessee performs the obligations imposed upon it hereunder
and is not in default hereunder, and Sublessee attorns to the holder of such deed of trust or mortgage,
its assignee or the purchaser at any foreclosure sale. Any such subordination shall be contingent upon
Sublessee receiving a commercially reasonable non-disturbance agreement. Sublessee shall
execute any instrument presented to Sublessee for the purpose of effecting such subordination. If
Sublessee, within ten (10) days after submission of such instrument, fails to execute same, Sublessor is hereby
authorized to execute same as attorney-in- fact for Sublessee. It is a condition, however, to the
subordination and lien provisions herein provided, that Sublessor shall procure from any such mortgagee an
agreement in writing, which shall be delivered to Sublessee or contained in the aforesaid subordination
agreement, providing in substance that so long as Sublessee shall faithfully discharge the obligations on
its part to be kept and performed under the terms of this Sublease and is not in default under the terms
hereof, its tenancy will not be disturbed nor this Sublease affected by any default under such mortgage.

     (b) Wherever notice is required to be given to Sublessor pursuant to the terms of this
Sublease, Sublessee will likewise give such notice to any mortgagee of Sublessor’s interest in the
demised premises upon notice of such mortgagee’s name and address from Sublessor. Furthermore, such
mortgagee shall have the same rights to cure any default on the part of Sublessor that
Sublessor would have had.

SECTION 13. SUBLEASE OR ASSIGNMENT

     The Sublessee further covenants and agrees not to enter into license, purchase or concession
agreements or to assign or sublet the demised premises or any part of same, or in any other manner
transfer, mortgage or pledge the Sublease, its subleasehold or the demised premises, without the
prior written consent of Sublessor, which consent shall not be unreasonably withheld or delayed.
In the event

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of any such subletting or assignment or other such transfer upon obtaining Sublessor’s consent,
Sublessee shall nevertheless remain fully and primarily liable hereunder.

SECTION 14. COMMON AREAS

     Common areas means all areas and facilities in the Shopping Center provided and so designated
by Landlord and made available by Landlord pursuant to the terms of the Master Lease for the common
use and benefit of tenants and their respective sublessees of the Shopping Center and their
customers, employees and invitees. Common areas shall include (to the extent the same are
constructed), but not be limited to, the parking areas, sidewalks, landscaped areas, corridors,
stairways, boundary walls and fences, incinerators, truckways, service roads, and service areas not
reserved for the exclusive use of tenants or other sublessees.

SECTION 15. OPERATION OF COMMON AREAS

     (a) Landlord shall, throughout the term hereof, operate and maintain the common areas
including the parking areas for the use and benefit of the tenants and their respective sublessees of
the Shopping Center and their customers and invitees. Landlord shall at all times have exclusive control
of the common areas and may at any time and from time to time: (i) promulgate, modify and amend
reasonable rules and regulations for the use of the common areas, which rules and regulations shall be
binding upon the Sublessee upon delivery of a copy thereof to the Sublessee; (ii) temporarily close any
part of the common areas, including but not limited to closing the streets, sidewalks, road or other
facilities to the extent necessary to prevent a dedication thereof or the accrual of rights of any person or of
the public therein; (iii) exclude and restrain anyone from the use or occupancy of the common areas or
any part thereof except bona fide customers and suppliers of the tenants and their respective
sublessees of the Shopping Center who use said areas in accordance with the rules and regulations established by
Landlord; (iv) engage others to operate and maintain all or any part of the common areas, on
such terms and conditions as Landlord shall, in its sole judgment, deem reasonable and proper; and (v)
make such changes in the common areas as in its opinion are in the best interest of the Shopping Center,
including but not limited to changing the location of walkways, service areas, driveways, entrances,
existing automobile parking spaces and other facilities, changing the direction and flow of traffic and
establishing prohibited areas.

     (b) Sublessee shall keep all common areas free of obstructions created or permitted by
Sublessee. Sublessee shall permit the use of the common areas only for normal parking and ingress and
egress by

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its customers and suppliers to and from the demised premises. If in Landlord’s or
Sublessor’s opinion unauthorized persons are using any of the common areas by reason of
Sublessee’s occupancy of the demised premises, Landlord and/or Sublessor shall have the right at
any time to remove any such unauthorized persons from said areas or to restrain unauthorized
persons from said areas. Landlord, Sublessor, Sublessee, and others constructing improvements or
making repairs or alterations in the Shopping Center shall have the right to make reasonable use
of portions of the common areas.

SECTION 16. COMMON AREA
MAINTENANCE, SUBLESSEE’S SHARE

     (a) Sublessee shall initially pay to Sublessor as additional rental, simultaneously with
payment of minimum rental called for under Section 5, fifty cents ($0.50) per square foot, payable in equal
monthly installments of One Thousand Eighty One and 46/100 Dollars ($1,081.46), as its estimated
monthly prorata share of the “maintenance cost” for the operation and maintenance of the common
areas.

     (b) The Maintenance Costs for the common areas shall be computed in accordance with the terms
of the Master Lease.

     (c) Sublessor shall maintain, or cause Landlord to maintain, accurate and detailed records of
all Maintenance Costs for the common areas in accordance with generally accepted accounting
principles. Sublessee’s proportionate share of the Maintenance Costs of the common areas shall be a
fraction, the numerator of which shall be the floor area of the premises and the denominator of which shall
be the gross leasable area (in square feet) of all leasable space in the Shopping Center.

     (d) Sublessee’s proportionate share of all Maintenance Costs shall be computed by Sublessor
within ninety (90) days after the end of each accounting year (which Sublessor may change from
time to time). At this time Sublessor shall furnish to Sublessee a statement showing in reasonable
detail the actual Maintenance Costs incurred during such accounting year and Sublessee’s proportionate
share thereof (prorated for any partial Sublease year, with appropriate adjustments to reflect any
change in the floor area of the premises or the gross leasable area of a building occurring during such
accounting year). To the extent Sublessee’s share of such costs differs from the sum paid by Sublessee in
respect to such year, the difference shall be billed to and paid by Sublessee within thirty (30) days after
Sublessee’s receipt of said bill. Sublessee’s estimated monthly maintenance cost thereafter may be
adjusted by written notice from Sublessor. Notwithstanding the above, Sublessee’s prorata share shall not
exceed that of Sublessor under the master lease.

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     (e) If Sublessee, for any reason in the exercise of good business judgment, questions or
disputes any statement of maintenance costs prepared by Sublessor, then Sublessee, at its own
expense, may employ such accountants as Sublessee may select to review Sublessor’s books and
records solely with respect to maintenance costs during the prior two (2) Lease Years to determine
the amount of maintenance costs for the period or periods covered by such statements. If the report
of the accountants employed by Sublessee shall show any overcharge paid by Sublessee, then
Sublessee shall receive a credit from Sublessor for such difference. Any underpayment shall be paid
by Sublessee. In the event that Sublessee questions or disputes the correctness of such report, the
accountants employed by Sublessee and the accountants employed by Sublessor shall endeavor to reconcile the question(s) or
dispute(s) within thirty (30) days after the notice from Sublessee questioning or disputing the
report of Sublessor’s accountants. In the event that it is finally determined by the parties that
Sublessor has overstated maintenance costs for any Sublease year by three percent (3%) or more,
Sublessor shall pay the reasonable cost of the audit. Furthermore, if Sublessor’s maintenance
costs cannot be verified due to the insufficiency or inadequacy of Sublessor’s records, then
Sublessor shall pay the cost of the audit.

SECTION 17. EMINENT DOMAIN

     (a) In the event the entire premises or any part thereof shall be taken or condemned either
permanently or temporarily for any public or quasi-public use or purpose by any competent
authority in appropriation proceedings or by any right of eminent domain, the entire compensation or award
therefore, including subleasehold, reversion and fee, shall belong to the Sublessor and
Sublessee hereby assigns to Sublessor all of Sublessee’s right, title and interest in and to such award.

     (b) In the event that only a portion of the demised premises, not exceeding twenty percent
(20%) of same, shall be so taken or condemned, and the portion of the demised premises not taken can
be repaired within ninety (90) days from the date of which possession is taken for the public use
so as to be commercially fit for the operation of Sublessee’s business, the Sublessor at its own expense
shall so repair the portion of the demised premises not taken and there shall be an equitable abatement
of rent for the remainder of the term and/or extended terms. If the portion of the demised premises
not taken cannot be repaired within ninety (90) days from the date of which possession is taken so as to
be commercially fit for the operation of Sublessee’s business, then this Sublease shall terminate
and become null and void from the time possession of the portion taken is required for public use, and
from that date on the parties hereto shall be resubleased from all further obligations hereunder except as
herein stated.

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No other taking, appropriation or condemnation shall cause this Sublease to be terminated.
Any such appropriation or condemnation proceedings shall not operate as or be deemed an eviction of
Sublessee or a breach of Sublessor’s covenant of quiet enjoyment.

     (c) In the event that more than 20% of the demised premises shall at any time be taken by
public or quasi-public use or condemned under eminent domain, then at the option of the Sublessor
or Sublessee upon the giving of thirty (30) days written notice (after such taking or
condemnation), this Sublease shall terminate and expire as of the date of such taking and any
prepaid rental shall be prorated as of the effective date of such termination.

SECTION 18. SUBLESSEE’S TAXES

     Sublessee further covenants and agrees to pay promptly when due all taxes assessed against
Sublessee’s fixtures, furnishings, equipment and stock-in trade placed in or on the demised
premises during the term of this Sublease.

SECTION 19. RISK OF GOODS

     All personal property, goods, machinery, and merchandise in said demised premises shall be at
Sublessee’s risk if damaged by water, fire, explosion, wind or accident of any kind, and Sublessor
shall have no responsibility therefor or liability for any of the foregoing and Sublessee hereby
resubleases Sublessor from such liability.

SECTION 20. USE AND OCCUPANCY

     The demised premises during the term of this Sublease shall be occupied for the operating and
conducting therein of a retail shoe store or any other lawful retail purpose in accordance with
the terms of the Master Lease Sublessee shall at all times conduct its operations on the demised
premises in a lawful manner and shall, at Sublessee’s expense, comply with all laws, rules,
orders, ordinances, directions, regulations, and requirements of all governmental authorities, now
in force or which may hereafter be in force, which shall impose any duty upon Sublessor or
Sublessee with respect to the business of Sublessee and the use, occupancy or alteration of the
demised premises. Sublessee shall comply with all requirements of the Americans with Disabilities
Act, and shall be solely responsible for all alterations within the demised premises in connection
therewith. Sublessee covenants and agrees that the demised premises shall not be abandoned and
that only minor portions of the demised premises shall be used for office or storage space in
connection with Sublessee’s business conducted in the demised premises. Without being in default
of this Sublease, Sublessee shall have the right to cease operating

15

 

(go dark) at any time and for whatever reason after the first (1st) sublease Year.
Notwithstanding the foregoing, Sublessee’s right to vacate (go dark), shall not release or excuse
the Sublessee from any obligations or liabilities, including the payment of Rent and other charges,
under this Sublease without the express written consent of Sublessor. In the event Sublessee fails
to operate for one hundred twenty (120) or more consecutive days, Sublessor shall have the right,
effective upon thirty (30) days prior written notice to Sublessee, to terminate the Sublease as
Sublessor’s sole remedy, provided that if Sublessee recommences operating fully stocked in
substantially all of the premises within such thirty (30) days, Sublessor’s termination shall be
null and void. In the event Sublessee shall cease operating after the first sublease year,
Sublessor’s sole remedy on account thereof shall be limited to the right to elect to recapture the
premises and terminate the Sublease and to recover from Sublessee the unamortized portion of the
costs incurred by Sublessor in performing Sublessor’s Work. Upon payment thereof by Sublessee,
there shall be no further liability of the parties hereunder. Such termination shall be effective
upon written notice to Sublessee any time prior to Sublessee reopening for business in the
premises. Provided, however, in the event Sublessor has not so elected to recapture, Sublessee
shall have right to notify Sublessor of Sublessee’s intention to reopen for business fully stocked
in substantially all of the premises within sixty (60) days, followed by Sublessee’s actually
reopening for business in the premises within such sixty (60) day period, which notice and actual
reopening shall toll Sublessor’s right to recapture.

SECTION 21. NUISANCES

     Sublessee shall not perform any acts or carry on any practice which may injure the demised
premises or be a nuisance or menace to other Sublessees in the Shopping Center.

SECTION 22. WASTE AND REFUSE REMOVAL

     Sublessee covenants that it will use, maintain and occupy said demised premises in a careful,
safe, lawful and proper manner and will not commit waste therein. Sublessor or its agent shall
have access at all reasonable times to the demised premises for purposes of inspecting and
examining the condition and maintenance of the demised premises. Sublessee agrees to remove all
refuse from the demised premises in a timely, clean and sanitary manner. Sublessee shall provide a
refuse collection container at the rear of the demised premises to accommodate Sublessee’s refuse
and Sublessee shall routinely clean up around trash containers. Sublessee shall contract with a
licensed/insured refuse

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collection contractor to timely remove refuse therefrom and the location of the container
shall be approved by Sublessor.

SECTION 23. FIRE AND CASUALTY

     (a) Sublessor or Landlord shall at all times during the term of this Sublease carry fire,
casualty, and extended coverage insurance on the building, including the structural components
(foundations, floors, walls, windows, structural supports, roof, HVAC, electrical systems, and plumbing)
thereof. Sublessor and Landlord shall be under no obligation to maintain insurance on any improvements
installed by or for the benefit of Sublessee’s use of the premises. Sublessor and Landlord
may elect to self-insure their obligations hereunder and/or use whatever deductibles as Landlord and
Sublessor deem appropriate, in their sole discretion.

     (b) If the demised premises shall be damaged, destroyed, or rendered untenantable, in whole or
in part, by or as the result or consequence of fire or other casualty during the term hereof,
Landlord or Sublessor shall repair and restore the same to a good tenantable condition with reasonable
dispatch. During such period of repair, the rent herein provided for in this Sublease shall abate (i)
entirely in case all of the demised premises are untenantable; and (ii) proportionately if only a portion of
the demised premises is untenantable and Sublessee is able to economically conduct its business from the
undamaged portion of the demised premises. The abatement shall be based upon a fraction, the numerator
of which shall be the square footage of the damaged and unusable area of the demised premises and the
denominator shall be the total square footage of the demised premises. Said abatement shall
cease at such time as the demised premises shall be restored to a tenantable condition.

     (c) In the event the demised premises, because of such damage or destruction, are not repaired
and restored to a tenantable condition with reasonable dispatch within one hundred fifty (150)
days from the date of receipt of insurance proceeds for such damage or destruction, Sublessee or
Sublessor may, at their option, terminate this Sublease within sixty (60) days following such one hundred fifty
(150) day period but prior to the repair and restoration of same by giving prior written notice to the
other party and thereupon Sublessor and Sublessee shall be released from all future liability and obligations
under this Sublease.

     (d) If one-third (1/3) or more of the ground floor area of the demised premises are damaged or
destroyed during the last two (2) years of the original or any extended term of this Sublease,
Sublessor shall have the right to terminate this Sublease by written notice to Sublessee within sixty
(60) days

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following such damage or destruction, unless Sublessee shall, within thirty (30) days
following receipt of such notice, offer to extend the term of this Sublease for an additional
period of five (5) years from the date such damage or destruction is repaired and restored. If
Sublessee makes said offer to extend, Sublessor and Sublessee shall determine the terms and
conditions of said extension within thirty (30) days thereafter or Sublessee’s offer shall not be
deemed to prevent Sublessor from canceling this Sublease. If such terms and conditions have been
mutually agreed to by the parties, then Sublessor shall accept Sublessee’s offer and shall repair
and restore the demised premises with reasonable dispatch thereafter.

SECTION 24. SUBLESSOR REPAIRS

     (a) Sublessor or Landlord shall keep in good order, condition, and repair the following: (i)
structural portions of the demised premises; (ii) downspouts; (iii) gutters; (iv) the roof of
the Building of which the demised premises forms a part; and (v) the plumbing and sewage system serving the
demised premises but located outside of the demised premises, except (as to all items) for damage
caused by any negligent act or omission of Sublessee or its customers, employees, agents, invitees,
licensees or contractors, which shall be repaired or replaced as necessary, at the sole cost and expense of
Sublessee. “Structural portions” shall mean only the following: (i) foundations; (ii) exterior walls
except for interior faces); (iii) concrete slabs; (iv) the beams and columns bearing the main load of the roof;
and (v) the floors (but not floor coverings).

     (b) Notwithstanding the provisions of Paragraph (a) above, Sublessor and Landlord shall not be
obligated to repair the following: (i) the exterior or interior of any doors, windows, plate
glass, or showcases surrounding the demised premises or the store front; (ii) heating, ventilating or
air- conditioning equipment in the demised premises; and (iii) damage to Sublessee’s improvements
or personal property caused by any casualty, burglary, break-in, vandalism, war or act of God.
Sublessor shall, in any event, have ten (10) days after notice from Sublessee stating the need for
repairs to complete same, or commence and proceed with due diligence to complete same. Sublessee
expressly hereby waives the provisions of any law permitting repairs by a Sublessee at Sublessor’s
expense.

     (c) The provisions of this Section 24 shall not apply in the case of damage or destruction by
fire or other casualty or a taking under the power of eminent domain in which events the
obligations of Sublessor shall be controlled by Section 23 and Section 17 respectively.

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SECTION 25. SUBLESSEE’S REPAIRS

     (a) Sublessee shall keep and maintain, at Sublessee’s expense, all and every other part of the
demised premises in good order, condition and repair, including, by way of example but not
limitation: (i) all subleasehold improvements; (ii) all heating, ventilating, and air conditioning; (iii)
interior plumbing and sewage facilities; (iv) all interior lighting; (v) electric signs; (vi) all
interior walls; (vii) floor coverings; (viii) ceilings; (ix) appliances and equipment; (x) all doors, exterior
entrances, windows and window moldings; (xi) plate glass; (xii) signs and showcases surrounding and within the
demised premises; (xiii) the store front; (xiv) sprinkler systems including supervisory alarm service
in accordance with current local and state fire protection standards. In the event local or state codes do
not require alarm systems, Sublessee shall provide alarm service on all sprinkler systems to detect water
flow and tampering with exterior and interior main control valves of the sprinkler system servicing
Sublessee’s premises. Moreover, it shall be Sublessee’s responsibility to contact the Commercial Property
Manager at 1798 Frebis Avenue, Columbus, Ohio 43206-3764, (614) 445-8461, in the event the sprinkler
system in the demised premises is ever shut off for any reason, and advise same of any damage
occasioned or caused by the actions of Sublessee, its agents, invitees, or employees, and/or as a result of
Sublessee’s repair obligations hereunder.

     (b) If Sublessor deems any repair which Sublessee is required to make hereunder to be
necessary, Sublessor may demand that Sublessee make such repair immediately. If Sublessee refuses or
neglects to make such repair and to complete the same with reasonable dispatch, Sublessor may make such
repair and Sublessee shall, on demand, immediately pay to Sublessor the cost of said repair, together
with interest at ten percent (10%) per annum. Sublessor shall not be liable to Sublessee for any
loss or damage that may accrue to Sublessee’s stock or business by reason of such work or its results.

     (c) Neither Sublessee nor any of its contractors are permitted access to or permitted to
perform alterations of any kind to the roof of the building.

     (d) Sublessee shall pay promptly when due the entire cost of work in the demised premises
undertaken by Sublessee so that the demised premises and the Shopping Center shall at all
times be free of liens for labor and materials arising from such work; to procure all necessary permits
before undertaking such work; to do all of such work in a good and workmanlike manner, employing
materials of good quality; to perform such work only with contractors previously reasonably approved of
in writing by Sublessor; to comply with all governmental requirements; and to save the Sublessor
and its

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agents, officers, employees, contractors and invitees harmless and indemnified from all
liability, injury, loss, cost, damage and/or expense (including reasonable attorneys’ fees and
expenses) in respect of any injury to, or death of, any person, and/or damage to, or loss or
destruction of, any property occasioned by or growing out of such work.

SECTION 26. COVENANT OF PEACEFUL POSSESSION

     Sublessor shall put Sublessee into complete and exclusive possession of the demised premises,
and if Sublessee shall pay the rental and perform all the covenants and provisions of this
Sublease to be performed by the Sublessee, Sublessee shall, during the term hereby demised,
freely, peaceably, and quietly enjoy and occupy the full possession of the demised premises and the common facilities of
the Shopping Center, subject, however, to the terms and conditions of this Sublease.

SECTION 27. SUBLESSEE’S AND SUBLESSOR’S INSURANCE; INDEMNITY

     (a) Casualty Insurance. Sublessee shall carry such insurance against loss of its property in,
on or about the demised premises by fire and such other risks as are covered by all risk and
extended coverage property insurance or other hazards as Sublessee deems necessary. Sublessor shall not be
liable for any damage to Sublessee’s property in, on or about the demised premises caused by fire or other
insurable hazards regardless of the nature or cause of such fire or other casualty, and regardless of
whether any negligence of Sublessor or Sublessor’s employees or agents contributed thereto. Sublessee
expressly releases Sublessor of and from all liability for any such damage. Sublessee agrees that its
insurance policy or policies shall include a waiver of subrogation recognizing this resublease from
liability.

     (b) Public Liability Insurance. Sublessee agrees to procure and maintain during the demised
term a policy or policies of liability insurance, with product and/or completed operations
liability and blanket contractual coverage, written by a responsible insurance company or companies (which
may be written to include the demised premises in conjunction with other premises owned or operated
by Sublessee) insuring Sublessee against any and all losses, claims, demands or actions for
injury to or death of any one or more persons and for damage to property in any one occurrence in the
demised premises to the limit of not less than $1,000,000.00 and $2,000,000.00 general aggregate
policy limit arising from Sublessee’s conduct and operation of its business in the demised premises,
$500,000.00 limit for fire and legal liability, and $1,000,000.00 limit for products and/or completed
operations. Sublessee shall furnish to Sublessor certificates evidencing the continuous existence of such
insurance coverage, which must also name Sublessor as an additional insured. All insurance companies
must be

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licensed to do business in the state where the premises are located. Certificates of
insurance will be provided at the time this Sublease is executed and twenty (20) days prior to
expiration of the policy. Certificates of insurance are to specify notification to Sublessor of
cancellation or termination of policy not less than ten (10) days prior to cancellation or
termination.

     (c) Additional Insurance. Sublessee agrees to
provide a comprehensive boiler and machinery
policy on a repair or replacement cost basis with an admitted, reputable insurance carrier
covering property damage, business interruption and extra expense as
a result of a loss from
 boiler(s),
pressure vessel(s), HVAC equipment, or miscellaneous electrical apparatus within or, servicing the
demised premises. The deductible for property damage shall not exceed Five Thousand Dollars
($5,000.00) per occurrence. Business interruption deductible may not exceed twenty-four (24) hours. The limits
for loss shall be no less than the replacement cost of the structure plus betterments and improvements
thereon, furniture, fixtures, equipment and inventory together with property of others in the care,
custody and control of Sublessee. Business interruption limits shall be for the actual loss sustained.

     (d) Miscellaneous Insurance. Sublessee agrees to provide and keep in force at all times
worker’s compensation insurance complying with the law of the state in which the premises are located.
Sublessee agrees to defend, indemnify and hold harmless Sublessor from all actions or claims
of Sublessee’s employees or employee’s family members. Sublessee agrees to provide a
certificate as evidence of proof of worker’s compensation coverage.

     With respect to any
alterations or improvements by Sublessee, Sublessee shall maintain
contingent liability and builder’s risk coverage naming Sublessor as an additional named insured.
If Sublessee hires contractors to do any improvements on the premises, each contractor must provide
proof of worker’s compensation coverage on its employees and agents to Sublessor.

     (e) During the term of this Sublease, Sublessor or Landlord shall, at their sole cost and
expense, provide and maintain or cause to be provided and maintained with respect to the premises,
insurance on the common areas, the Sublessee’s store building and all other improvements in the Shopping
Center in which the premises are situated. The Sublessor covenants and agrees that said insurance shall
include protection against all the hazards covered by fire and extended coverage form of insurance
policy and shall be in amounts which, in the event of damage or destruction, will yield funds adequate to
restore the said improvements to at least the condition existing immediately prior to any such damage or
destruction. Neither Sublessee nor any of its affiliates or subtenants shall be liable for
any loss or

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damage, regardless of cause, resulting from fire, flood, act of God or other casualty.
Sublessor shall also obtain or cause Landlord to obtain general comprehensive liability insurance
for coverage and limits at least equal to that set forth in Section 27(b) for all portions of the
Shopping Center (other than the premises or those areas insured by other lessees), including the
common areas, protecting Sublessee for any and all claims for damages to persons or property or
loss of life or property occurring upon, in or about the common areas and the remainder of the
Shopping Center. Sublessor or Landlord, as the case may be, may use commercially reasonable
deductibles as such party customarily carries in the conduct of its business; however, Sublessor
or Landlord, as the case may be, shall be responsible for all liabilities
not covered by deductibles or self-insured retention levels.

     (f) Indemnity. Sublessee shall indemnify Sublessor, Sublessor’s agents, employees, officers or
directors, against all damages, claims and liabilities arising from any alleged products
liability or from any accident or injury whatsoever caused to any person, firm or corporation during the demised
term in the demised premises, unless such claim arises from a breach or default in the performance by
Sublessor of any covenant or agreement on its part to be performed under this Sublease or the negligence
of Sublessor. The indemnification herein provided shall include all reasonable costs, counsel
fees, expenses and liabilities incurred in connection with any such claim or any action or
proceeding brought thereon.

     (g) Sublessor shall indemnify Sublessee, Sublessee’s officers, directors, employees and
agents against all damages, claims and liabilities arising from any accident or injury
whatsoever caused to any person, firm or corporation during the demised term in the common areas of the Shopping
Center, unless such claim arises from a breach or default in the performance by Sublessee of any
covenant or agreement on Sublessee’s part to perform under this Sublease or the negligence of Sublessee.
The indemnification herein provided shall include all reasonable costs, counsel fees, expenses and
liabilities incurred in connection with any such claim or any action or proceeding brought thereon.

SECTION 28. REAL ESTATE TAXES

     Sublessee shall pay Sublessee’s Proportionate Share (as hereinafter defined) of any real
estate taxes imposed upon the Shopping Center for each sublease year included within the period
commencing with the Commencement Date and ending with the expiration of the term of this Sublease.
For each sublease year, “Sublessee’s Proportionate Share” of the real estate taxes upon the
Shopping Center (including the Common Areas) shall be the product of such taxes multiplied by a
fraction, the numerator

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of which shall be the ground floor area (expressed in square feet) of the Demised Premises
and the denominator of which shall be the gross leasable floor area (expressed in square feet) of
the Shopping Center.

     For the purpose of this Sublease, the term “real estate taxes” shall include all amounts
payable as real estate taxes under the Master Lease.

     The real estate taxes for any sublease year shall be the real estate taxes for the tax year
terminating during said sublease year. If any sublease year shall be greater than or less than
twelve (12) months, or if the real estate tax year shall be changed, an appropriate adjustment
shall be made. If there shall be more than one taxing authority, the real estate taxes for any
period shall be the sum of the real estate taxes for said period attributable to each taxing
authority. If, upon the assessment day for real estate taxes for any tax year fully or partly
included within the term of this Sublease, a portion of such assessment shall be attributable to
buildings in the process of construction, a fair and reasonable adjustment shall be made to carry
out the intent of this section.

     Sublessor shall submit to Sublessee true copies of the real estate tax bill for each tax year
or portion of a tax year included within the term of this Sublease and shall bill Sublessee for
the amount to be paid by Sublessee hereunder. Said bill shall be accompanied by a computation of
the amount payable by Sublessee and such amount shall be paid by Sublessee within thirty (30) days
after receipt of said bill.

     Should the State of Pennsylvania or any political subdivision thereof or any governmental
authority having jurisdiction thereof, impose a tax and/or assessment (other than an income or
franchise tax) upon or against the rentals payable hereunder, in lieu of or in addition to
assessments levied or assessed against the demised premises, or Shopping Center, then such tax
and/or assessment shall be deemed to constitute a tax on real estate for the purpose of this
section. Notwithstanding the above, Sublessee’s prorata share of real estate taxes shall not
exceed a pro rata share of Sublessor’s expenses therefor pursuant to the Master Lease.

SECTION 29. SUBLESSEE’S INSURANCE CONTRIBUTION

     Sublessee shall pay as additional rent, Sublessee’s Proportionate Share (as defined in
Section 28 above) of the premiums for the insurance maintained by Sublessor on all buildings and
improvements, as well as liability insurance for the Shopping Center, including the common areas,
for each sublease year during the term of this Sublease, or, alternatively, all amounts maintained
therefor by Landlord under the Master Lease. The premiums for the first and last sublease years
shall be prorated. Sublessee

23

 

shall pay Sublessee’s Proportionate Share of such premiums annually upon demand for such
payment by Sublessor. Sublessee’s Proportionate Share thereof shall be paid by Sublessee within
thirty (30) days after Sublessor’s demand therefor. Notwithstanding the above, Sublessee’s prorata
share of insurance costs shall not exceed a pro rata share of Sublessor’s expense therefor pursuant
to the Master Lease.

SECTION 30. FIXTURES

     Provided that Sublessee shall repair any damage caused by removal of its property and
provided that the Sublessee is not in default under this Sublease, Sublessee shall have the right
to remove from the demised premises all of its signs, shelving, electrical, and other fixtures and
equipment, window reflectors and backgrounds and any and all other trade fixtures which it has
installed in and upon the demised premises.

SECTION 31. SURRENDER

     The Sublessee covenants and agrees to deliver up and surrender to the Sublessor the physical
possession of the demised premises upon the expiration of this Sublease or its termination as
herein provided in as good condition and repair as the same shall be at the commencement of the
original term, loss by fire and/or ordinary wear and tear excepted, and to deliver all of the keys
to Sublessor or Sublessor’s agents.

SECTION 32. HOLDING OVER

     There shall be no privilege of renewal hereunder (except as specifically set forth in this
Sublease) and any holding over after the expiration by the Sublessee shall be from day to day on
the same terms and conditions (with the exception of rental which shall be prorated on a daily
basis at twice the daily rental rate of the most recent expired term) at Sublessor’s option; and
no acceptance of rent by or act or statement whatsoever on the part of the Sublessor or his duly
authorized agent in the absence of a written contract signed by Sublessor shall be construed as an
extension of the term or as a consent for any further occupancy.

SECTION 33. NOTICE

     Whenever under this Sublease provisions are made for notice of any kind to Sublessor, it
shall be deemed sufficient notice and sufficient service thereof if such notice to Sublessor is in
writing, addressed to Sublessor at 1798 Frebis Avenue, Columbus, Ohio 43206-3764, or at such
address as Sublessor may notify Sublessee in writing, and deposited in the United States mailed by
registered or certified mail, return receipt requested, with postage prepaid or Federal Express,
Express Mail or such other expedited

24

 

mail service as normally results in overnight delivery, with a copy of same sent in like manner to
President, Real Estate, 1800 Moler Road, Columbus, Ohio 43207. Notice to Sublessee shall be sent
in like manner to 1675 Watkins Road, Columbus, Ohio 43207. All notices may be effective upon
receipt or refusal of receipt. Either party may change the place for service of notice by notice
to the other party.

SECTION 34. DEFAULT

     (a) Elements of Default: The occurrence of any one or more of the following events shall
constitute a default of this Sublease by Sublessee:

     1. Sublessee fails to pay any monthly installment of minimum rent and/or additional rent
within ten (10) days after the same shall be due and payable and, for the first two (2) times in
any twelve (12) month period, within five (5) days after receipt of written notice thereof;

     2. Sublessee fails to perform or observe any term, condition, covenant or obligation required
to be performed or observed by it under this Sublease for a period of twenty (20) days after notice
thereof from Sublessor; provided, however, that if the term, condition, covenant or obligation to
be performed by Sublessee is of such nature that the same cannot reasonably be cured within twenty
(20) days and if Sublessee commences such performance or cure within said twenty (20) day period
and thereafter diligently undertakes to complete the same, then such failure shall not be a default
hereunder if it is cured within a reasonable time following Sublessor’s notice, but in no event
later than forty-five (45) days after Sublessor’s notice.

     3. If Sublessee refuses to take possession of the demised premises at the delivery of
possession date.

     4. A trustee or receiver is appointed to take possession of substantially all of Sublessee’s
assets in, on or about the demised premises or of Sublessee’s interest in this Sublease (and
Sublessee or any guarantor of Sublessee’s obligations under this Sublease does not regain
possession within sixty (60) days after such appointment); Sublessee makes an assignment for the
benefit of creditors; or substantially all of Sublessee’s assets in, on or about the demised
premises or Sublessee’s interest in this Sublease are attached or levied upon under execution (and
Sublessee does not discharge the same within sixty (60) days thereafter).

     5. A petition in bankruptcy, insolvency, or for reorganization or arrangement is filed by or
against Sublessee or any guarantor of Sublessee’s obligations under this Sublease pursuant to any

25

 

Federal or state statute, and, with respect to any such petition filed against it, Sublessee or
such guarantor fails to secure a stay or discharge thereof within sixty (60) days after the filing
of the same.

     (b) Sublessor’s Remedies: Upon the occurrence of any event of default, Sublessor shall have
the following rights and remedies, any one or more of which may be exercised without further notice
to or demand upon Sublessee:

     1. Sublessor may re-enter the demised premises and cure any default of Sublessee, in which
event Sublessee shall reimburse Sublessor for any cost and expenses which Sublessor may incur to
cure such default; and Sublessor shall not be liable to Sublessee for any loss or damage which
Sublessee may sustain by reason of Sublessor’s action.

     2. Sublessor may terminate this Sublease or Sublessee’s right to possession under this
Sublease as of the date of such default, in which event: (a) neither Sublessee nor any person
claiming under or through Sublessee shall thereafter be entitled to possession of the demised
premises, and Sublessee shall immediately thereafter surrender the demised premises to Sublessor;
(b) Sublessor may re-enter the demised premises and dispose Sublessee or any other occupants of the
Premises by force, summary proceedings, ejectment or otherwise, and may remove their effects,
without prejudice to any other remedy which Sublessor may have for possession or arrearages in
rent; and (c) not withstanding a termination of this Sublease, Sublessor may re-let all or any part
of the demised premises for a term different from that which would otherwise have constituted the
balance of the term of this Sublease and for rent and on terms and conditions different from those
contained herein, whereupon Sublessee shall immediately be obligated to pay to Sublessor as
liquidated damages the difference between the rent provided for herein and that provided for in any
sublease covering a subsequent re-letting of the demised premises, for the period which would
otherwise have constituted the balance of the term of this Sublease, together with all of
Sublessor’s costs and expenses for preparing the demised premises for re-letting, including all
repairs, Sublessee finish improvements, broker’s and attorney’s fees, and all loss or damage which
Sublessor may sustain by reason of such termination, re-entry and re-letting, it being expressly
understood and agreed that the liabilities and remedies specified herein shall survive the
termination of this Sublease. Notwithstanding a termination of this Sublease by Sublessor,
Sublessee shall remain liable for payment of all rentals and other charges and costs imposed on
Sublessee herein, in the amounts, at the times and upon the conditions as herein provided.
Sublessor shall credit against such liability of the Sublessee all amounts received by Sublessor
from such re-letting after first

26

 

reimbursing itself for all reasonable costs incurred in curing Sublessee’s defaults and
re-entering, preparing and refinishing the demised premises for re-letting, and re-letting the
demised premises.

     3. Upon termination of this Sublease pursuant to Section 34(b)2, Sublessor may recover
possession of the demised premises under and by virtue of the provisions of the laws of the State
of Pennsylvania, or by such other proceedings, including reentry and possession, as may be
applicable.

     4. Any damage or loss of rent sustained by Sublessor may be recovered by Sublessor, at
Sublessor’s option, at the time of the reletting, or in separate actions, from time to time, as
said damage shall have been made more easily ascertainable by successive relettings, or at
Sublessor’s option in a single proceeding deferred until the expiration of the term of this
Sublease (in which event Sublessee hereby agrees that the cause of action shall not be deemed to
have accrued until the date of expiration of said term) or in a single proceeding prior to either
the time of reletting or the expiration of the term of this Sublease.

     5. In the event of a breach by Sublessee of any of the covenants or provisions hereof,
Sublessor shall have the right of injunction and the right to invoke any remedy allowed at law or
in equity as if reentry, summary proceedings, and other remedies were not provided for herein.
Mention in this Sublease of any particular remedy shall not preclude Sublessor from any other
remedy, in law or in equity. Sublessee hereby expressly waives any and all rights of redemption
granted by or under any present or future laws in the event of Sublessee being evicted or
dispossessed for any cause, or in the event of Sublessor obtaining possession of the demised
premises by reason of the violation by Sublessee of any of the covenants and conditions of this
Sublease or other use.

     (c) Additional Remedies and Waivers: The rights and remedies of Sublessor set forth herein
shall be in addition to any other right and remedy now or hereinafter provided by law and all such
rights and remedies shall be cumulative. No action or inaction by Sublessor shall constitute a
waiver of a Default and no waiver of Default shall be effective unless it is in writing, signed by
the Sublessor

     (d) Default by Sublessor. Any failure by Sublessor to observe or perform any provision,
covenant or condition of this Sublease to be observed or performed by Sublessor, if such failure
continues for thirty (30) days after written notice thereof from Sublessee to Sublessor, shall
constitute a default by Sublessor under this Sublease, provided, however, that if the nature of
such default is such that the same cannot reasonably be cured within a thirty (30) day period,
Sublessor shall not be deemed

27

 

to be in default if it shall commence such cure within such thirty (30) day period and thereafter
rectify and cure such default with due diligence.

     Sublessee’s Remedies. In the event of default by the Sublessor, Sublessee shall have the
option to cure said default. Sublessor shall reimburse Sublessee for the reasonable costs incurred
by Sublessee in curing such default within thirty (30) days after invoice therefor by Sublessee,
together with reasonable evidence supporting such invoiced amount. Sublessee shall also have any
and all rights available under the laws of the state in which the leased premises are situated.

SECTION 35. WAIVER OF SUBROGATION

     Sublessor and Sublessee, and all parties claiming under each of them, mutually resublease and
discharge each other from all claims and liabilities arising from or caused by any casualty or
hazard covered or required hereunder to be covered in whole or in part by insurance coverage
required to be maintained by the terms of this Sublease on the demised premises or in connection
with the Shopping Center or activities conducted with the demised premises, and waive any right of
subrogation which might otherwise exist in or accrue to any person on account thereof. All
policies of insurance required to be maintained by the parties hereunder shall contain waiver of
subrogation provisions so long as the same are available.

SECTION 36. LIABILITY OF SUBLESSOR; EXCULPATION

     (a) Except with respect to any damages resulting from the gross negligence of Sublessor, its
agents, or employees, Sublessor shall not be liable to Sublessee, its agents, employees, or
customers for any damages, losses, compensation, accidents, or claims whatsoever. The foregoing
notwithstanding, it is expressly understood and agreed that nothing in this Sublease contained
shall be construed as creating any liability whatsoever against Sublessor personally, and in
particular without limiting the generality of the foregoing, there shall be no personal liability
to pay any indebtedness accruing hereunder or to perform any covenant, either express or implied,
herein contained, or to keep, preserve or sequester any property of Sublessor, and that all
personal liability of Sublessor, to the extent permitted by law, of every sort, if any, is hereby
expressly waived by Sublessee, and by every person now or hereafter claiming any right or security
hereunder; and that so far as the parties hereto are concerned, the owner of any indebtedness or
liability accruing hereunder shall look solely to the demised premises and the Shopping Center for
the payment thereof.

     (b) If the Sublessee obtains a money judgment against Sublessor, any of its officers,
directors,

28

 

shareholders, partners, or their successors or assigns under any provisions of or with respect to
this Sublease or on account of any matter, condition or circumstance arising out of the
relationship of the parties under this Sublease, Sublessee’s occupancy of the building or
Sublessor’s ownership of the Shopping Center, Sublessee shall be entitled to have execution upon
any such final, unappealable judgment only upon Sublessor’s fee simple or subleasehold estate in
the Shopping Center (whichever is applicable) and not out of any other assets of Sublessor, or any
of its officers, directors, shareholders or partners, or their successor or assigns; and Sublessor
shall be entitled to have any such judgment so qualified as to constitute a lien only on said fee
simple or subleasehold estate. Notwithstanding the above, Sublessee shall have the right to offset
any final, unappealable judgement against 25% of all rentals if not paid to Sublessee by Sublessor
within thirty (30) days thereafter.

     (c) It is expressly agreed that nothing in this Sublease shall be construed as creating any
personal liability of any kind against the assets of any of the officers, directors, members,
partners or shareholders of Sublessee, or their successors and assigns (excluding fraud and/or
negligence of any such individual beyond the scope of such individual’s employment by Sublessee).

SECTION 37. RIGHTS CUMULATIVE

     Unless expressly provided to the contrary in this Sublease, each and every one of the rights,
remedies and benefits provided by this Sublease shall be cumulative and shall not be exclusive of
any other of such rights, remedies and benefits or of any other rights, remedies and benefits
allowed by law.

SECTION 38. MITIGATION OF DAMAGES

     Notwithstanding any of the terms and provisions herein contained to the contrary, Sublessor
and Sublessee shall each have the duty and obligation to mitigate, in every reasonable manner, any
and all damages that may or shall be caused or suffered by virtue of defaults under or violation of
any of the terms and provisions of this Sublease agreement committed by the other.

SECTION 39. SIGNS

     No signs, whether building, free-standing, pylon or other signs, shall be placed within the
Shopping Center except as such sign shall comply with sign criteria established by Landlord and
with the prior written consent of Sublessor (not to be unreasonably withheld) and by Landlord in
accordance with the terms of the Master Lease after sign drawings have been submitted to Sublessor
by Sublessee. Sublessor represents that Sublessee shall have exterior building and pylon signage.

29

 

SECTION 40. ENTIRE AGREEMENT

     This Sublease shall constitute the entire agreement of the parties hereto; all prior
agreements between the parties, whether written or oral, are merged herein and shall be of no force
and effect. This Sublease cannot be changed, modified, or discharged orally but only by an
agreement in writing signed by the party against whom enforcement of the change, modification or
discharge is sought.

SECTION 41. SUBLESSOR’S LIEN — DELETED BY INTENTION 

SECTION 42. BINDING UPON SUCCESSORS

     The covenants, conditions, and agreements made and entered into by the parties hereto shall be
binding upon and inure to the benefit of their respective heirs, representatives, successor and
assigns.

SECTION 43. HAZARDOUS SUBSTANCES

     During the term of this Sublease, Sublessee shall not suffer, allow, permit or cause the
generation, accumulation, storage, possession, resublease or threat of resublease of any hazardous
substance or toxic material, as those terms are used in the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, and any regulations promulgated thereunder, or
any other present or future federal, state or local laws, ordinances, rules, and regulations.
Sublessee shall indemnify and hold Sublessor harmless from any and all liabilities, penalties,
demands, actions, costs and expenses (including without limitation reasonable attorney fees),
remediation and response costs incurred or suffered by Sublessor directly or indirectly arising
directly from Sublessee’s tenancy. Such indemnification shall survive expiration or earlier
termination of this Sublease. At the expiration or sooner termination hereof, Sublessee shall
return the demised premises to Sublessor in substantially the same condition as existed on the
date of commencement hereof free of any hazardous substances in, on or from the demised premises.
The Sublessor hereby represents and warrants that: (i) it has not
used, generated, discharged, released or stored any hazardous substances on, in or under the
Shopping Center and has received no notice and has no knowledge of the presence in, on or under
the Shopping Center of any such hazardous substances; (ii) to Sublessor’s knowledge there have
never been any underground storage tanks at the Shopping Center, whether owned by the Sublessor or
its predecessors in interest; (iii) to Sublessor’s knowledge there 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 Shopping Center; (iv) it has not spilled, discharged or leaked petroleum products other than
de minimis quantities in connection with the

30

 

operation of motor vehicles on the Shopping Center; (v) to Sublessor’s knowledge, there has
been no graining, filling or modification of wetlands (as defined by federal, state or local law,
regulation or ordinance) at the Shopping Center; and (vi) to Sublessor’s knowledge there is no
asbestos or asbestos-containing material in the leased premises. The representations and warranties
set forth in this subparagraph shall apply to any contiguous or adjacent property owed by the
Sublessor. Sublessor hereby indemnifies Sublessee for any and all loss, cost, damage or expense to
Sublessee resulting from any misrepresentation or breach of the foregoing representations and
warranties.

     If any such hazardous substances are discovered at the Shopping Center (unless introduced by
the Sublessee, its agents or employees) or if any asbestos or asbestos containing material is
discovered in the subleased premises, and removal, encapsulation or other remediation is required
by applicable laws, the Sublessor immediately and with all due diligence and at no expense to the
Sublessee shall take all measures necessary to comply with all applicable laws and to remove such
hazardous substances or asbestos from the Shopping 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 Sublessor shall repair and restore
the Shopping Center at its expense. From the date such encapsulation, remediation and restoration
is complete, the rent due hereunder shall be reduced by the same percentage as the percentage of
the subleased premises which, in the Sublessee’s reasonable judgement, cannot be safely,
economically or practically used for the operation of the Sublessee’s business. Anything herein to
the contrary notwithstanding, if in the Sublessee’s reasonable judgement, such removal,
encapsulation, remediation and restoration cannot be completed within one hundred eighty (180) days
or the same is not actually completed by Sublessor within such one hundred eighty (180) day period
following the date such hazardous substances or asbestos are discovered, and such condition
materially adversely affects Sublessee’s ability to conduct normal business operations in the
premises, then the Sublessee may terminate this Sublease by written notice to the Sublessor within
thirty (30) days after such 180 day period, which notice shall be effective on Sublessor’s receipt
thereof. Sublessor shall comply with OSHA 29 CFR 1910.1001 (j) to notify tenants, including
Sublessee, of asbestos related activities in the subleased premises and the Shopping Center
including, but not limited to, selection of the certified/licensed asbestos abatement contractor,
scope of the abatement work, and final clearance testing procedures and results.

31

 

SECTION 44. TRANSFER OF INTEREST

     If Sublessor should sell or otherwise transfer its interest in the demised premises,
upon an undertaking by the purchaser or transferee to be responsible for all the covenants and
undertakings of Sublessor, Sublessee agrees that Sublessor shall thereafter have no liability to
Sublessee under this Sublease or any modifications or amendments thereof, or extensions thereof,
except for such liabilities which might have accrued prior to the date of such sale or transfer of
its interest by Sublessor.

SECTION 45. ACCESS TO PREMISES

     Sublessor and its representatives shall have free access to the demised premises at all
reasonable times for the purpose of: (i) examining the same or to make any alterations or repairs
to the demised premises that Sublessor may deem necessary for its safety or preservation; (ii)
exhibiting the demised premises for sale or mortgage financing; (iii) during the last three (3)
months of the term of this Sublease, for the purpose of exhibiting the demised premises and
putting up the usual notice “to rent” which notice shall not be removed, obliterated or hidden by
Sublessee, provided, however, that any such action by Sublessor shall cause as little
inconvenience as reasonably practicable and such action shall not be deemed an eviction or
disturbance of Sublessee nor shall Sublessee be allowed any abatement of rent, or damages for an
injury or inconvenience occasioned thereby.

SECTION 46. HEADINGS

     The headings are inserted only as a matter of convenience and for reference and in no way
define, limit or describe the scope or intent of this Sublease.

SECTION 47. NON-WAIVER

     No payment by Sublessee or receipt by Sublessor or its agents of a lesser amount than the
rent in this Sublease stipulated shall be deemed to be other than on account of the stipulated
rent nor shall an endorsement or statement on any check or any letter accompanying any check or
payment of rent be deemed an accord and satisfaction and Sublessor or its agents may accept such
check or payment without prejudice to Sublessor’s right to recover the balance of such rent or
pursue any other remedy in this Sublease provided.

SECTION 48. SHORT FORM SUBLEASE

     This Sublease shall not be recorded, but a short form sublease, which describes the property
herein demised, gives the term of this Sublease and refers to this Sublease, shall be executed by
the parties hereto, upon demand of either party and such short form sublease may be recorded by
Sublessor

32

 

or Sublessee at any time either deems it appropriate to do so. The cost and recording of such short
form sublease shall belong to the requesting party.

SECTION 49. REFERENCE TO MASTER LEASE

     Sublessor is the owner of the tenant’s interest under a lease dated the 28th day of
December, 1973 (the “Master Lease”), a copy of which is attached hereto as Exhibit “D”. Sublessee
and Sublessor shall adhere to all requirements of the Master Lease, and Sublessor agrees that it
shall not modify the Master Lease so as to materially adversely impair Sublessee’s rights
hereunder. Sublessor hereby agrees to indemnify and hold Sublessee harmless on account of any
direct loss, cost of expense incurred by Sublessee on account of a default by Sublessor under the
Master Lease.

SECTION 50. ESTOPPEL CERTIFICATE

     At any time and from time to time upon not less than ten (10) business day’s prior notice by
Sublessor or Sublessee, the other party shall deliver a statement in writing addressed to the
requesting party certifying (i) that this Sublease is unmodified and in full force and effect (or
if there have been modifications, that the same is in full force and effect as modified and
stating the modifications), (ii) whether the term has commenced and rent shall have become payable
hereunder, and if so, the dates to which they have been paid, (iii) whether or not, to such
party’s knowledge, the requesting party is in default in performance of any of the terms of this
Sublease, and if so, specifying such default of which it may have knowledge, (iv) whether
Sublessee has accepted possession of the subleased premises, (v) whether either party has made any
claim against the other under this Sublease, and if so, the nature thereof, (vi) whether there
exist any offset or defenses against enforcement of any of the terms of this Sublease upon the
part of Sublessee to be performed, and if so, specifying the same; and (vii) such other matters as
either party may reasonably request of the other.

IN WITNESS WHEREOF, the parties hereto have executed this Sublease the day and year first above
written.

33

 

	 	 	 	 	 	 	 	 	 
	Signed and Acknowledged 	 	 	 	 	 	 
	in the presence of:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SUBLESSOR:	 	 
	 	 	 	 	SCHOTTENSTEIN STORES CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	BY:
	 	/s/ Jay Schottenstein	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Jay Schottenstein	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ITS: Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Edward K. Arndt	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	/s/ Barbara Pugh
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SUBLESSEE:	 	 
	 	 	 	 	SHONAC CORPORATION,	 	 
	 	 	 	 	an Ohio corporation	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	BY:
	 	/s/ John Rossler	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	John Rossler	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ITS: Executive V.P., COO	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Tracy L. Snow
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	[ILLEGIBLE COPY]	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	:	 	 	 	 	 	 
	

	 	: SS.	 	 	 	 	 	 
	COUNTY OF FRANKLIN

	 	:	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 5th day of June, 2000,
by Jay Schottenstein, Chairman of Schottenstein Stores Corporation, a Delaware corporation,
for and on behalf of said corporation.

	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 
	

	 	 	 	BARBARA PUGH
	 	/s/ Barbara Pugh	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	NOTARY PUBLIC, STATE OF OHIO
	 	Notary Public	 	 
	

	 	 	 	MY COMMISSION EXPIRES JUNE 1, 2002	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	:	 	 	 	 	 	 
	

	 	: SS.	 	 	 	 	 	 
	COUNTY OF FRANKLIN

	 	:	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 12th day of June, 2000,
by John Rossler, Executive V.P., COO of Shonac Corporation, an Ohio corporation, for and on behalf
of said corporation.

	 	 	 	 	 
	 	 	 
	 	          /s/ Tracy L. Snow
 	 
	 	Notary Public 	 
	 	 	 
	 

	 	 	 	 	 
	
	 	 	 	Tracy L. Snow
	
	 	 	 	NOTARY PUBLIC - STATE OF OHIO
	
	 	 	 	My Commission Expires 3/15/01

34

 

EXHIBIT “A”

 

 

WALTER L. PHILLIPS

INCORPORATED

CIVIL ENGINEERS

LAND SURVEYORS

PLANNERS

_______

DIRECTORS

WALTER L. PHILLIPS. P.E.

CHAIRMAN OF THE BOARD

W. LEE. PHILLIPS. JR. P.E.

PRESIDENT

ROBERT A. KINSEY. P.E.

VICE PRESIDENT

_______

ASSOCIATE

JERRY A. McKNIGHT. C.L.S.

Description of the Property of Sunset Development Corporation of Northern Virginia, Mason
District, Fairfax County, Virginia.

     “Beginning at a point in the north line of Leesburg Pike,. Virginia Route 7, as widened, said
point marks the southeast corner of the L. P. Corporation; thence with the east line of said L. P.
Corporation and then continuing with the east line of Hardin
Corporation, N 19° 18' 50" E, 611.54
feet to a point marking the northeast corner of the Hardin Corporation in the south line of the
Amanda Corporation; thence with the south line of the Amanda Corporation and continuing with the
south line of Payne, S 61° 32' 20" E, 423.31 feet to a corner to Payne; thence continuing with the
west line of Payne, S 19° 18' 50" W, 614.54 feet to a point in the north-line of Leesburg Pike,
Virginia Route 7, as widened, marking the southwest corner of Payne; thence with the said north
line of Leesburg Pike, Virginia Route 7, as widened, N 61°
08' 20" W, 423.80 feet to the beginning
and containing 5.8817 acres.”

901 W. BROAD STREET

FALLS CHURCH, VA 22048

(705) 532-5163

	 	 	 	 	 
	

	 	/S/ Walter L. Phillips	 	 
	

	 	 	 	 
	

	 	Walter L. Phillips, C.L.S.	 	 
	

	 	December 10, 1973	 	 

Exhibit A-l

(Description of Property)

 

 

LEASE

Walter J. Hodges

and

Joseph P. Smyth,

Landlord

and

Hechinger Company

Tenant

EXHIBIT “D”

Opened – 11/17/74

Lease Commencement

Date – 12/1/74

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Paragraph	 	Subject	 	Page
	  1

	 	Demised Premises
	 	 	1	 
	  2

	 	Term
	 	 	2	 
	  3

	 	Rent
	 	 	4	 
	  4

	 	Use of Premises
	 	 	10	 
	  5

	 	Taxes
	 	 	13	 
	  6

	 	Construction of Improvements
	 	 	16	 
	  7

	 	Repairs and Alterations
	 	 	21	 
	  8

	 	Compliance with Laws
	 	 	22	 
	  9

	 	Public Easements
	 	 	24	 
	10

	 	Mechanics’ Liens
	 	 	24	 
	11

	 	Net Lease
	 	 	25	 
	12

	 	Insurance
	 	 	26	 
	13

	 	Indemnification
	 	 	29	 
	14

	 	Fire or Casualty
	 	 	31	 
	15

	 	Eminent Domain
	 	 	33	 
	16

	 	Quiet Enjoyment
	 	 	35	 
	17

	 	Default
	 	 	35	 
	18

	 	Assignment on Subletting
	 	 	37	 
	19

	 	Certificates
	 	 	37	 
	20

	 	Notice
	 	 	38	 
	21

	 	Right of Access
	 	 	39	 
	22

	 	Waiver
	 	 	39	 
	23

	 	Limitation of Liability
	 	 	40	 
	24

	 	Bankruptcy of Landlord
	 	 	41	 
	25

	 	Construction of Lease
	 	 	41	 
	26

	 	Recording
	 	 	41	 
	27

	 	Real Estate commissions
	 	 	41	 
	28

	 	Right of First Refusal
	 	 	42	 
	29

	 	Time of Essence
	 	 	44	 
	30

	 	Personal Property
	 	 	44	 
	31

	 	Zoning Laws
	 	 	44	 
	32

	 	Denial of Access
	 	 	44	 
	33

	 	Waiver of Subrogation
	 	 	44	 
	34

	 	Non-disturbance
	 	 	45	 
	35

	 	Signs
	 	 	45	 
	36

	 	Arbitration
	 	 	45	 
	37

	 	Consent Required
	 	 	47	 
	38

	 	Non Disturbance — Present Deed of Trust
	 	 	47	 
	39

	 	Successors and Assigns	 	 	 	 

 

 

LEASE

     This Lease is made this 28th day of December, 1973, by and between Walter J. Hodges
and Joseph P. Smyth, c/o Walter J. Hodges, 4697 South 34th Street, Arlington, Virginia
22206, hereinafter together referred to as “Landlord”, and Hechinger company, a District of
Columbia corporation having its executive offices at 901 17th Street, N.E., Washington, D. C.,
hereinafter referred to as “Tenant”.

     Witnesseth, that for and in consideration of the mutual covenants of the parties, it is
agreed as follows:

     1. (a) Landlord does hereby lease and demise to Tenant and Tenant does hereby take
and rent from Landlord, upon the covenants and conditions contained herein, all of that parcel of
land, located on the northeast side of Leesburg Pike, Fairfax County, Virginia, as outlined in
red on the survey entitled “Plat Showing The Property of Sunset Development Corporation of Northern
Virginia”, dated December 5, 1973, prepared by Walter L. Phillips, Inc., a copy of which is
attached hereto and made a part hereof and marked Exhibit “A”, containing 5.8817 acres, more or
less, and as further described by metes and bounds on Exhibit “A-l” attached hereto and made part
hereof.

         (b) Together with all the improvements to be constructed thereon, and all easements,
rights, ways, waters and appurtenances belonging or incidental thereto, and all right, title and
interest of Landlord in and to the streets, alleys and public highways through or adjoining the
same, which, together

 

 

with the parcel of land described in Paragraph 1 (a) above,
shall collectively be referred to herein as the “demised premises”.

     2. The initial term of this Lease shall begin on the
commencement date as herein defined and fully expire 25 years
thereafter; provided, however, that if the commencement date is
not the first day of a month, then the initial term hereof shall
fully expire 25 years after the first day of the first full
month immediately following the commencement date. Promptly
after the commencement date, the parties shall execute a recordable supplement hereto stating the commencement and expiration
dates.

     The commencement date shall be the earlier to occur of (a) the date on which Tenant first
opens for business on the demised premises or (b) March 1, 1975. Tenant
covenants and agrees to apply for site plan approval on or before December 28, 1973 and for a
building permit as soon thereafter as reasonably practical with the appropriate Fairfax County,
Virginia authorities and to submit with such applications all necessary plans. Landlord
agrees to execute where necessary any permit applications. Landlord agrees to deliver possession
of the parcel of land
hereby leased to Tenant within thirty-five days after receipt by Landlord of written notice
that Tenant desires possession. Such
thirty-five day period shall begin on the next Wednesday following receipt by Landlord
of such notice. Tenant shall not
be required to accept possession of the land prior to the
expiration of thirty days after the beginning of the thirty-five
day period. Landlord agrees that it shall have levelled to the

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ground the physical
structure supporting the theater [ILLEGIBLE COPY] as of
the date Landlord delivers possession of the land to Tenant.
Following the date hereof, Tenant shall have a right of entry on
the demised premises to conduct tests, studies and surveys.

     Both Landlord and Tenant shall have the right to cancel
this Lease in the event that Tenant is unable to obtain a building permit from the applicable
governmental agencies on or before April 1, 1974 or June 1, 1974 if such date is extended as
hereinafter provided, by giving written notice to the other within ten days after April 1, 1974 or
June 1, 1974, as the case may be, whereupon both parties shall be relieved from further liability
hereunder. Tenant agrees to notify Landlord in writing of the
filing of the aforesaid applications within five days of such
filings. In no event shall Landlord be required to deliver
possession of the land to Tenant prior to the obtaining by Tenant of the building permits.
In the event that Tenant has not
obtained the building permit by April 1, 1974 but is continuing
diligently and in good faith to obtain said permit, the date of
April 1, 1974 shall be extended to June 1, 1974.

     Provided Tenant shall not be in default herein, Tenant
shall have the option to extend the term of this Lease upon all
of the same terms, covenants and conditions for one additional
term of ten years. If Tenant exercises its extension option,
Tenant shall have the option to extend the term hereof for a second additional term
of ten years. If Tenant exercises its
second extension option, Tenant shall have the option to extend
the term hereof for a third additional term of ten years. Such

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[ILLEGIBLE
COPY] to be exercised by Tenant
unless Tenant shall have given to Landlord written notice that
Tenant does not wish to extend the term of this Lease at least one year prior to the
commencement date of the particular option
period. Provided Tenant is not in default and Tenant has not previously notified Landlord that
Tenant does not wish’ to extend
the term of this Lease, Tenant may exercise more than one option
at one time by giving written notice to Landlord.

     3. Tenant covenants and agrees to pay
to the Landlord
during the term of this Lease annual net minimum rent, hereinafter referred to as “minimum rent”, equal to the greater of
(a) or (b) as hereinafter set forth:

     (a) The sum of $300,000.00.

     (b) $166,572.00, plus twelve percent times the amount
paid by Landlord for the “Landlords’s cost” (as such term is defined in Paragraph 6
hereof). The phrase “term, of this Lease”,
as used herein, shall mean the original twenty-five year term
plus any extension options exercised by Tenant.

     Such minimum rent shall be paid in
advance in equal
monthly installments on the first day of each and every month
during each “lease year” (as such term is hereinafter defined) of the term of this Lease,
except that minimum rent for the period from the date the term hereof commences, if such date is not
the first day of a month, to the first day of the following
month shall be due and payable on the date said term commences.
Minimum rent for less than a one month period and less than a

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full twelve month lease year shall be adjusted pro rata. Until
such time as Landlord’s cost is determined, Tenant shall pay a
temporary monthly minimum rental of $25,000.00. At such time as the actual minimum rent is
determined, any necessary adjustments shall be made between the parties within ten days
after the date upon which Landlord’s cost is determined. It is the intention of the
parties hereto that the minimum rent to be paid hereunder shall be paid to Landlord
absolutely net without deduction of any nature whatsoever, unless otherwise specifically
provided for in this Lease. The parties agree to execute a Lease Amendment setting forth
the finally determined annual minimum rent.
Tenant shall have the right to audit Landlord’s cost. The cost
of such audit shall be paid by Tenant, provided that Landlord will reimburse Tenant for
audit costs if Tenant discovers an error prejudicial to Tenant equalling 2% (or more) of
the correct Landlord’s cost. Disputes in determining Landlord’s cost shall be determined
by arbitration pursuant to Paragraph 36 of this
Lease.

     Notwithstanding any provision hereof to the contrary, if the commencement date is
after December 1, 1974, Tenant shall pay
Landlord, on the commencement date, a sum equal to $456.36 multiplied by the number
of days elapsing from and including December 1, 1974 to, but not including, the commencement
date.

     As additional rent (hereinafter called “percentage rent”) Tenant agrees to pay to Landlord
the amount, if any, by which two percent (2%) of Tenant’s “gross sales” (as such term is
hereinafter defined) on the “Occupied Portion” (as such term is hereinafter defined) for each
lease year during the term of this Lease shall exceed the amount of minimum rent paid by Tenant during the particular lease year. The term “lease
year” shall mean each period of February

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1 through January 31 except that the first lease year shall be the
period from the commencement date of this Lease through the next January 31; except that
the last lease year shall be the period
from the January 31st next preceding the expiration date hereof
(as same may be extended) through said expiration date. If
Tenant’s fiscal year changes during the term of this Lease, the
parties will cooperate and attempt to adjust the lease year to
coincide with Tenant’s fiscal year.

     The term “gross sales”, as used herein, means the
total amount charged by Tenant or anyone in Tenant’ s behalf or
by concessionaires or licensees of Tenant in connection with, any
and all sales (including telephone sales) of merchandise and
service to patrons and customers, made or rendered on, in or from the Occupied Portion,
including sales of merchandise shipped from
other locations on orders taken in or through the Occupied Portion, or by persons reporting to the
Occupied Portion, whether or not such amounts shall be for cash or on credit, whether paid or
unpaid, collected or uncollected. Each charge or sale upon
installment or credit shall be treated as a sale for the full
price in the month during which such charge or sale shall be made,
irrespective of the time when or if Tenant shall receive payment
(whether full or partial) therefor.

     There shall, however, be deducted or excluded therefrom the following to the extent that the same shall be included

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in Tenant’s computation of gross sales:

	 	(1)  	All credits and refunds made to customers for merchandise returned or exchanged.
	 
	 	(2)  	All sums and credits received in settlement of
claims for loss or damage to merchandise sold as
aforesaid.
	 
	 	(3)  	All sales or excise taxes imposed by any governmental body on such sales and services which taxes
are added to the price therefor or collected from
the patron or customer and paid by Tenant to such
governmental authority. No franchise or capital
stock tax and no income or similar tax based upon income or profits as such
shall be deducted from gross sales in any event whatever.
	 
	 	(4)  	Transfers of merchandise from the Occupied Portion
to other stores or warehouses of Tenant.
	 
	 	(5)  	Accommodation sales, such as sales of postage
stamps, government bonds, savings stamps or similar
items where no profit is being made.
	 
	 	(6)  	Returns of merchandise to manufacturers, or
suppliers.
	 
	 	(7)  	Sale of trade fixtures or equipment.
	 
	 	(8)  	Service or other charges payable by the customer
because an item is sold on credit instead of for
cash and any and all charges payable by customers
for delivery of merchandise.

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	 	  (9)	Exclusion or deduction for amount of gift certificates redeemed in cash or for merchandise.
	 
	 	(10)  	Deduction of deposits returned to customers.
	 
	 	(11)  	Services (such as repairs and delivery) rendered
at cost.
	 
	 	(12)  	Amounts allowed to customers for merchandise or
other things of value traded in to Tenant.
	 
	 	(13)  	The amount of sales made from vending machines,
excluding the portion thereof paid to Tenant as a
commission, selling strictly accommodation or
convenience products for . Tenant’s customers or
employees such as, but not limited to, cigarettes,
stamps and soda. In the event that Tenant shall
sell any of its product lines from vending machines
the total sales thereof shall be included in gross
sales.
	 
	 	(14)  	Sales and receipts of subtenants not located in the
Occupied Portion and sub-rental income to Tenant
from subtenants on the demised premises.
	 
	 	(15)  	Commissions, bonuses and other fees paid by
licensees or concessionaires to Tenant.

     Tenant shall record at the time of sale all receipts
from sales or other transactions whether cash or credit in a cash
register or in cash registers having a cumulative total which
shall be sealed. Tenant’s bookkeeping procedures shall be
consistent with good business practice. Tenant shall keep or
cause to be kept on the demised premises, or at its main office
address as set forth on the first page hereof, or at such other

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location in the Washington
area where Tenant may store its records, for a period of
not less than three (3) years after the end of the
lease year to which they have reference, full, true and accurate records of all such gross
sales, credits, refunds and other
operations to which Landlord or Landlord’s representative shall
 have access at any and all times during regular business hours for the purpose of examining or
auditing the same without expense to Tenant and Tenant shall also furnish to Landlord any and all
statements, information, copies of income tax returns which show separately financial data for the
Occupied Portion and other supporting data relating to such gross sales as and when Landlord may
reasonably require. Without limiting the generality of the
foregoing Tenant agrees to keep for at least three (3) years following the end of each
lease year the gross income, sales, use and occupation tax returns with respect to said lease
years and all pertinent original sales records. Errors, if any, in any statement submitted by the
Tenant shall be promptly adjusted and settled. If any error in the submission of gross sales
shall amount to a difference of 3% more of the correct gross sales, the reasonable costs,
including the full amount of bills rendered to Landlord by its then regularly employed certified
public accountant for such examination of Tenant’s books shall be paid by Tenant. The furnishing
by Tenant of any willfully or grossly inaccurate statement of gross sales may be deemed, at
Landlord’s
sole option and discretion, a violation or breach of or default
under this Lease. Landlord agrees to keep any information obtained from Tenant as
confidential, except that Landlord may

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give such information to any mortgagee or party secured by deed of trust, or to a prospective
purchaser of the demised premises, and except in connection with any litigation or arbitration
proceedings between the parties, or as may be required by any competent judicial or other legally
constituted authority. If Tenant disputes Landlord’s determination of gross sales after audit
by Landlord, such dispute shall be resolved by arbitration pursuant to Paragraph 36 hereof.

     Within sixty days after the end of each lease year, Tenant shall submit to Landlord a written
statement of Tenant’s gross sales for the preceding lease year certified by a certified public
accountant and Tenant shall pay simultaneously with the submission of such statement any percentage
rent which may be
due and payable.

     4. The term “Occupied Portion”, as used herein, shall mean the part or parts (if any) of the
demised premises which Tenant may elect to occupy at any time or from time to time during the term
of this Lease. Tenant agrees to operate a Hechinger store on the Occupied Portion substantially
similar to and under the same trade name as the majority of other stores may be operated at any
time or from time to time during the term of this Lease by Tenant in the Metropolitan Washington
area. Tenant may use the Occupied Portion for any lawful purpose whatsoever, including, but not
limited to, the sale of such merchandise and services as Tenant may from time to time desire,
provided, however, that in the event Tenant substantially changes the nature of its
business from the type of business in which Tenant is presently engaged in the Washington
Metropolitan area,

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Landlord shall have the right to cancel this Lease if Tenant is not willing to adjust the
percentage rent rate to that rate customarily paid by tenants operating businesses similar to the business operation to which Tenant has changed, such adjustment to be effective as of the date Tenant
so changed the nature of its business. Upon such termination, the rent and other charges payable
hereunder by Tenant shall be apportioned and adjusted to the date Tenant surrenders possession of
the demised premises and both parties shall be relieved of further liability under this Lease.

     In the event of a dispute as to whether Tenant has substantially changed its
business or as to the percentage rent rate applicable to such changed business, the dispute
shall be
referred to arbitration pursuant to the provisions of Paragraph 36 of this Lease. In the
event that it is determined by such arbitration that Tenant has substantially changed the nature
of its business and Tenant is unwilling to increase the percentage rent rate to the new rate
determined by the arbitrators as applicable to such changed business and Landlord does not
exercise its right to cancel this Lease within ninety (90) days after Tenant notified Landlord of
its election to not abide by the decision of the arbitrators with respect to the new percentage
rate, then the percentage rent rate shall remain at the rate in effect at the time of the
dispute. If Landlord shall be entitled to, but does not exercise, its rights to cancel this Lease
within ninety (90) days after Tenant notified Landlord of its election to not pay the new rate, as
aforesaid, then Landlord shall no longer have the right of cancellation and Tenant shall have
the right to conduct whatever business it may desire and otherwise use the demised premises

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for any lawful purpose without being required to pay a different
percentage rate than the rate in effect at the time of the dispute.

     At all times (if any) during the term hereof in which
there is an Occupied Portion, Tenant shall actively and diligently
operate its business in a high grade and reputable manner in the
Occupied Portion maintaining in the Occupied Portion a full staff
of employees and a full and complete inventory of merchandise during business hours (unless prevented from doing so by fire,
strikes or other conditions beyond the reasonable control of
Tenant).

     “Business hours” shall mean those hours maintained from time to time during the term of this
Lease by the majority of
other Hechinger stores operating in the Washington Metropolitan
area.

     In the event that Hechinger Company shall at any time
during the term of this Lease operate less than a 60,000 gross square foot retail facility
on the demised premises under the
trade name requirements set forth above, then, that portion of the
minimum rent equal to the ratio of square footage of building area
which is not being used by Hechinger as a retail operation to
60,000 square feet shall be adjusted to the “Consumer Price Index,
United States and Selected Area, Washington (1967 – 1969 = 100) all items” from the date
such event occurs. For example, if, on February 1, 1985, the Hechinger retail operation is
reduced to 45,000 square feet, one-fourth of the minimum rent shall be

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adjusted to the Index for the remainder of the lease term or until such time as Tenant
again operates at least a 60,000 square
foot Hechinger store, whichever shall be the first to occur. The portion of minimum
rental so affected shall be adjusted at the
end of every three lease years. The first adjustment shall be
made by multiplying the affected portion of the minimum rent by
a fraction, the numerator of which will be such Index for the
month of January immediately preceding the date on which such
adjustment takes place and the denominator of which shall be such
Index for the month of January one year prior to the January used
in the numerator. For example, the formula would be 15,000/60,000 X
$300,000 X Index, January, 1984/Index, January, 1983. Future adjustments at the end
of each three lease years would use the Index for the month of
January immediately preceding the date of adjustment as the
numerator and January, 1984 as the denominator. Tenant acknowledges that this adjustment would take effect even if a sublessee
of Tenant operated a retail facility in part of the original buildings constructed on the demised
premises. Under no circumstances shall the minimum rent be reduced below the original minimum rent
(or portion thereof so affected) as a result of any such adjustment. If such Index shall be
discontinued, then any similar successor consumer price index of the U.S. Department of Labor, or
successor agency thereto for the Washington area shall be used. If there is no such similar
successor index and the parties cannot agree upon a successor index or formula, or if there shall
be disagreement as to any other provision in this Paragraph 4, then
the matter shall be referred to arbitration as hereinafter provided pursuant to Paragraph 36 hereof.

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     5. Tenant will, at Tenant’s cost and expense, bear,
pay and discharge, or cause to be borne, paid and discharged, on
or before the last day upon which the same may be paid without
interest or penalty for the late payment thereof, all taxes,
assessments, sewer rents, water rents and charges, duties, impositions, license and permit fees,
charges for public utilities of any kind, and payments and other charges of every kind and nature
whatsoever, ordinary or extraordinary, foreseen or unforeseen, general or special (all of which are
hereinafter sometimes collectively referred to as “Impositions”) which
shall, pursuant to present or future law or otherwise, during the
term hereby granted be levied, charged, assessed or imposed upon,
or grow or become due and payable out of or for, or become or have become a lien on, the demised
premises or any part thereof, or any buildings or improvements now or hereafter located thereon, or
the appurtenances thereto, or the sidewalks, streets or vaults adjacent thereto, or any franchises
as may be appurtenant to the
use and occupation of the demised premises; it being the intention
of the parties hereto that the rents reserved herein shall be
received and enjoyed by Landlord as a net sum free of all such Impositions, except income taxes
assessed against Landlord, franchise, estate, succession, inheritance or transfer taxes of
Landlord, or any tax or charge in replacement or substitution of the foregoing or of a similar
character, provided, however, that if at any time during the term of this Lease the then

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prevailing
method of taxation or assessment shall be changed
so that the whole, or any part of the Impositions theretofore payable by Tenant as above
provided, shall instead be levied, charged, assessed or imposed wholly or partially on the rents
received by Landlord from the demised premises, or shall otherwise be imposed against
Landlord in the form of a franchise tax or otherwise, then Tenant shall pay all such levies,
charges, assessments, impositions, taxes and other substituted charges, on or before the last day
upon which the same may be paid without interest or penalty for the late payment thereof.

     Tenant shall furnish Landlord with evidence of the
payment and discharge of any of the aforesaid Impositions within thirty (30) days after the last
day upon which the same may be paid without interest or penalty for the late payment thereof.

     Tenant shall pay all interest and penalties imposed
upon the late payment of any Impositions which Tenant is obligated to pay or cause to be
paid hereunder.

     If Tenant shall fail, for ten (10) days after notice
and demand given to Tenant, to pay any Imposition on or before
the last day upon which the same may be paid without the
imposition of interest or penalties for the late payment thereof,
then Landlord may pay the same with all interest and penalties lawfully imposed upon
the late payment thereof and the amounts
so paid by Landlord shall thereupon be and become immediately

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due and payable by Tenant to Landlord hereunder.

     Tenant, at Tenant’s cost and expense, way, if Tenant
shall in good faith so desire, contest the validity or amount
of any Imposition, in which event Tenant may defer the payment
thereof for such period as such contest shall be actively prosecuted and shall be pending undetermined. Landlord agrees to
sign the necessary papers in connection with any real estate tax
assessment or other Imposition protest filed by Tenant. Any
refunds received as a result of such protests shall belong to
Tenant.

     No provision of this Lease shall be construed so as
to require Landlord to allow any such items so contested or
intended to be contested to remain unpaid for such length of time as shall permit the demised
premises, or the lien thereon created by such item to be contested, to be sold by federal, state,
county or municipal authority for the nonpayment thereof, or as shall permit an action, either of
foreclosure or otherwise, to be commenced by the holder of any mortgage which shall be a lien upon
Landlord’s interest in the demised premises.

     In the case of such of the aforesaid Impositions
levied with respect to a particular fiscal period of the levying or taxing authority, for any
such period in which this Lease terminates or expires, Tenant shall be liable under this Paragraph
5 only for such proportion of such Impositions as the part of such fiscal period from the
beginning of said period to the date of

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expiration
or termination of this Lease shall bear to the whole
of such fiscal period. It is agreed that Tenant shall have the
right to request that any lump sum special assessment be paid in
annual installments so long as Tenant pays such assessment or
tax resulting therefrom in full at the expiration of this Lease. Notwithstanding any provision
to the contrary set forth herein, all Impositions shall be adjusted on a pro-rata basis
commencing on the date Tenant is given possession of the land pursuant to the terms of Paragraph 2
herein.

     6. Tenant agrees to construct all of the improvements, structures, parking area and roadways
and to perform all other work of any nature, except the demolition of the existing motion picture
screen, necessary to change the present condition of the parcel of land being leased to the
condition desired by Tenant. All of such work shall be performed in accordance with plans and
specifications to be prepared by Tenant at Tenant’s expense, providing for improvements which
shall include a Hechinger store substantially similar to either the Glenmont or Tysons Corner
store of Hechinger. Any plans and specifications providing for improvements other than described
above shall be subject to Landlord’s approval. Landlord’s approval shall not be unreasonably
withheld or delayed. Landlord agrees to submit to Tenant on or before the date Landlord is
required to deliver possession of the demised premises to Tenant written evidence of Landlord’s
ability to fund Landlord’s maximum commitment hereunder to pay

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for
Landlord’s cost in a form acceptable to Tenant.

     Landlord
shall reimburse Tenant for all of its construction costs, being all expenses and costs reasonably incurred by

Tenant in designing and constructing Tenant’s improvements, in the following manner:

     Tenant shall submit monthly requisitions to Landlord on or before the 25th day of each month
signed by an officer of Tenant and the supervising architect setting forth in trade breakdown
form and in such detail as may be required by Landlord’s mortgagee the percentage of completion
and the amounts expended or costs incurred for work done and necessary materials delivered at the
site. Advances by Landlord for Tenant’s construction costs shall be equal to 90% of the
amount requisitioned and shall be made on or before the 10th day of the following month. The
first requisition may not be submitted until site work has commenced. Said first requisition may
include non-construction items expended prior to the date of said requisition such as architect’s
and engineer’s fees and recording costs. With each requisition
other than the first, Tenant
shall furnish waivers of mechanics liens as to the general contractor and each major subcontractor
and supplier for all work performed or materials included in the last previous requisition if
requested by the construction lender or title insurance company. The final holdback of 10% shall
be paid at such time as construction is fully completed to the reasonable satisfaction of Tenant,
Landlord and Landlord’s

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mortgagee,
final waivers of liens have been delivered to Landlord
and Tenant has taken possession of the improvements constructed
by Tenant on the demised premises and has opened for business in
the demised premises. The payment of all requisitions shall be
subject to the satisfaction by Tenant of the conditions normally
established by construction lenders in the Metropolitan Washington area. Landlord agrees to
accept Tenant’s architect’s certificate of full completion and will use its best efforts to have
its mortgagee also accept such certificate.

     It is agreed that the amount to be advanced by Landlord to Tenant for Tenant’s costs shall
be not less than $1,100,000.00
nor more than $2,100,000.00. The specific amount within such
limits shall be requested by Tenant in writing at the same time
Tenant notifies Landlord that Tenant desires possession of the demised premises. If Tenant shall
fail to so notify Landlord, it shall be presumed that Tenant requests Landlord to advance
$1,100,000.00.

     Any portion of loan placement fees, title insurance, lender’s counsel fees and/or closing
expenses attributable to that portion of the financing in excess of Landlord’s cost shall not be
included as part of Landlord’s cost. For example, if Tenant requests Landlord to provide financing
of $1,400,000.00 for Tenant’s costs and other portions of Landlord’s cost amount to $100,000.00
(for such items as interest during construction, etc.) and Landlord elects to obtain a mortgage for
$2,000,000.00, then only three-fourths of the amount of the loan placement fees,
title insurance, lender’s counsel fees and/or closing expenses shall be included in the
computation of Landlord’s cost. Landlord

- 18 -

 

shall
use its best efforts to minimize such fees.

     The term “Landlord’s cost” shall mean all sums expended
by Landlord for reimbursement to Tenant for Tenant’s cost of
construction, interest payable by Landlord to Landlord’s construction lenders on sums advanced to
Tenant by Landlord, costs of
obtaining construction and permanent financing (including, but not limited to, loan placement fees,
title insurance, lender’s counsel fees and closing expenses as computed according to the provisions
of the immediately preceding paragraph) and permit fees paid by Landlord, if any. In the event
Landlord’s cost exceeds the amount requested by Tenant in accordance with the provisions
set forth above plus the actual amount of those items included in Landlord’s cost which are
not part of Tenant’s cost of construction (i.e., construction loan interest, loan placement fees,
etc.), Landlord shall have the option of paying such excess amount or of requiring Tenant to pay
such excess amount. At the time Tenant notifies Landlord that Tenant desires possession of the
demised premises, the parties shall in good faith prepare a written estimate of the total amount of
those items included in Landlord’s cost which are not part of Tenant’s costs. Any dispute in
preparing the estimate shall be resolved as directed solely by Tenant. Unless Landlord notifies
Tenant in writing within ten days after
the total amount of Landlord’s costs has been determined of Landlord’s election, Tenant shall pay
any such excess amount. Tenant shall have the right to audit the items submitted by Landlord
constituting Landlord’s costs. Any dispute shall be referred to arbitration pursuant to Paragraph
36 hereof.

     At the time Tenant notifies Landlord that it desires possession of the demised premises,
Tenant shall have the right to advise Landlord in writing that it intends to provide its own
construction funds and that Landlord shall only be obligated to

- 19 -

 

[ILLEGIBLE
COPY] the amount requested by Tenant as above provided between $1,100,000.00
and $2,100,000.00 at the time the final holdback payment would have been made to Tenant had Landlord
obtained a construction loan.

     In the event Tenant desires Landlord to provide funds
during construction to Tenant, Tenant shall so advise Landlord in writing at the time
Tenant notifies Landlord that it desires possession of the demised premises. If Tenant shall fail to advise
Landlord as to whether or not Landlord is to provide funds during
construction, it shall be presumed that Tenant desires Landlord to provide such funds.

     In the event Landlord is required to provide funds during
construction to Tenant, Tenant covenants and agrees to take such
funds from Landlord as such funds are needed during construction by Tenant. It is intended by
this paragraph that Tenant will take down all of the funds requested of Landlord during the normal
course of construction so that Landlord will not be in default of
any construction loan provisions requiring that funds borrowed from the construction lender shall
be used to pay for the construction of the project as such construction progresses.

     Tenant shall have the right, simultaneously with Landlord, to place the construction and/or permanent loans since the
cost of obtaining such loans, as above limited, are part of Landlord’s costs. The parties recognize that loan applications must
be promptly submitted and accepted. Accordingly, at such time as
Landlord is ready to submit a loan application to a lender, Landlord shall advise Tenant in writing of the terms of such application. Unless Tenant shall be able to provide a loan on terms
more favorable to the borrower and shall so advise Landlord within
48 hours after receipt of Landlord’s notice, Landlord shall have

- 20 -

 

the right to submit the loan application and to accept a
commitment from the lender in accordance with the terms of the application. Since it is to the mutual interest of Landlord and Tenant
to obtain construction and permanent loans on terms most favorable
to the borrower, Landlord and Tenant will work closely with each
other in order to achieve the desired result.

     Regardless of whether Landlord provides funds to Tenant during construction, Tenant covenants
and agrees to accept from
Landlord and Landlord agrees and covenants to deliver to Tenant (even if Tenant’s
costs are less than the amount requested by
Tenant) the amount of money originally requested by Tenant at
such time as said amount of money is payable by Landlord to Tenant.

     7. Tenant
shall at all times during the term of this
Lease, at Tenant’s cost and expense, keep the demised premises
and all buildings and improvements now or hereafter located thereon, and all facilities and equipment therein, and all sidewalks,
curbs, vaults and vault spaces adjoining the demised premises, and all appurtenances
thereto, in first class operating condition
and repair (subject, however, to normal wear and use), and in such condition as maybe required by
law and by the terms of the insurance policies furnished pursuant to the terms of this Lease,
whether or not such repair shall be interior or exterior, extraordinary as well as ordinary, and
whether or not such repair shall be of a structural nature, and whether or not the same can be
said to be within the present contemplation of the parties hereto. Upon the expiration of this
Lease, Tenant shall surrender the demised premises in good condition and repair, ordinary wear and
tear excepted.

- 21 -

 

     Tenant
shall at all times during the term of this Lease, at Tenant’s cost and expense,
keep the sidewalks, curbs, vaults and vault spaces adjoining the demised premises, free from snow,
ice and any other obstructions.

     Tenant may from time to time during the term of this Lease make alterations or additions to
the premises; provided that said alterations or additions shall not adversely affect the value
thereof and provided further_ _ _ _ _
that if any alteration is of a structural nature or shall cost more than fifty thousand dollars
($50,000.00), then Tenant shall obtain Landlord’s prior written consent thereto, which consent may
be conditioned on the furnishing by Tenant of a completion and
payment bond of a surety company reasonably acceptable to Landlord. Such consent shall not be
unreasonably withheld or delayed.

     8. Tenant shall at all times from and after the date Tenant takes possession of the demised
premises and during the term of this Lease, at Tenant’s cost and expense, perform and comply with
all laws, rules, orders, ordinances, regulations and requirements now or hereafter enacted or
promulgated, of any sovereign or municipality, or agency thereof, having jurisdiction over the
demised premises, or the buildings and improvements now or hereafter located thereon, or the
facilities or equipment therein, or the streets, sidewalks, vaults, vault spaces, curbs and
gutters adjoining the demised premises or the
appurtenances thereto, or the franchises and privileges connected
therewith, whether or not such laws, rules, orders, ordinances,
regulations or requirements so involved shall necessitate

- 22 -

 

structural changes, improvements, interference with use and
enjoyment of the demised premises, replacements or repairs, extraordinary as well as ordinary, and
Tenant shall so perform and comply, whether or not such laws, rules, orders, ordinances,
regulations, or requirements shall now exist or shall hereafter be enacted or promulgated, and
whether or not such laws, rules, orders, ordinances, regulations, or requirements can be said to
be within the present contemplation of the parties hereto.
Notwithstanding the foregoing, Tenant at its expense may contest, after prior written notice to Landlord, by appropriate legal
proceedings conducted in good faith and with due diligence, in the name of landlord or Tenant, or
both, the validity or application of any law, rule, order, ordinance,
regulation or requirement
of the nature referred to above, provided that (a) neither the demised premises nor any part
thereof would be in any danger of being forfeited or lost,
(b) neither Landlord nor any mortgagee would be in any danger of
civil or criminal liability for failure to comply therewith, and
(c) Tenant shall have furnished such security, if any, as may be
required in the proceedings. Landlord agrees to cooperate in any
such contesting by Tenant and to sign any necessary documents.

     Tenant
during the term of this Lease will not use or
keep or allow the demised premises or any portion thereof or any
buildings or other improvements now or hereafter erected or maintained thereon or any appurtenances thereto,
to be used or occupied for any unlawful purpose or in violation of any certificate
of occupancy, and will not suffer any act to be done or any

- 23 -

 

condition
to exist on the demised premises or any portion thereof or in any building or
other improvements now or hereafter erected thereon or in any appurtenance thereto, or remit
any article
to be brought therein, which nay be dangerous, unless safeguarded
as required by law, or which may, in law, constitute a nuisance, public or private, or which
nay make void or voidable any insurance in force with respect thereto.

     9. Landlord agrees to join in the execution of necessary
utility easements, street widening dedications or other documents
to public or quasi-public authorities necessary to permit the
parties to accomplish the results intended by this Lease.

     10. Notice is hereby given that Landlord shall not be
liable for any work performed or to be performed on the demised
premises, or in any building or improvement thereon, or in connection with any appurtenance thereto, for Tenant or for any
materials furnished or to be furnished at the demised premises
for Tenant, and that no mechanics’ or other lien for such work or
materials shall attach to the reversionary or other interest of
Landlord. If, in connection with any work being performed by
Tenant or in connection with any materials being furnished to Tenant, any mechanics’ lien or
other lien or charge shall be filed or made against the demised premises or any part thereof
or any buildings or improvements now or hereafter erected and maintained thereon or on
any appurtenances thereto, or if any
such lien or charge shall be filed or made against Landlord as
owner, then Tenant, at Tenant’s cost and expense, within thirty

- 24 -

 

(30) days after such lien or charge shall have been filed or
made, shall cause the same to be cancelled and discharged of record by payment thereof or filing
of a bond or otherwise, and shall also defend, at Tenant’s cost and expense, any action, suit or
proceeding which may be brought for the enforcement of such lien
or charge, and shall pay any damages suffered or incurred therein by Landlord, and shall
satisfy and discharge any judgment entered therein. In the event of the failure of Tenant to
discharge within the above-mentioned thirty (30) day period any mechanics’ lien or other lien or
charge herein required to be paid or discharged
by Tenant, Landlord may pay such items or discharge such liability by payment or bond, or both, and Tenant will repay to Landlord upon demand any and all
amounts paid by
Landlord therefor, or by reason of any liability on any such bond, and also any and all
incidental expenses, including counsel fees in reasonable
amount, incurred by Landlord in connection therewith.

     11. This is an absolutely net lease and Landlord shall
not be required to provide any services or do any act or thing
with respect to the demised premises, or the buildings and improvements thereon, or the appurtenances thereto, except as may be specifically provided herein,
and the rent reserved herein shall be paid to Landlord without any claim on the part of Tenant for
diminution, set off or abatement and nothing shall suspend, abate or reduce any rent to be paid
hereunder, unless otherwise specifically provided for herein.

- 25 -

 

     In the event that Landlord (or Landlord’s mortgagee)
shall fail to perform any obligation to be performed by Landlord
within thirty days after receipt of written notice, or commence
to cure within said thirty days and diligently proceed to cure
any matter which cannot be cured within said period, Tenant shall have the right to perform such
obligation and to deduct the cost thereof (plus interest thereon at 2% above the prime rate
charged by Riggs National Bank, Washington, D. C.) from the next
ensuing rental payments.

     12. Commencing on the date Tenant takes possession of
the demised premises and continuing at all times during the term
of this Lease, Tenant shall: (a) keep the buildings which may
hereafter be erected on the demised premises insured in the name
of Landlord, Tenant and Landlord’s mortgagee as their interest may
appear, with the standard mortgagee loss payable clause, in insurance companies satisfactory to Landlord against loss or damage by fire, windstorm, hail,
explosion, riot, civil commotion, vandalism,
malicious mischief, smoke, hurricane and tornado and damage from
aircraft and vehicles and such other risks as are customarily
insured against by persons in the same or a similar business as
Tenant in the Metropolitan Washington area, to the extent insurance against such risks is available in said area under an
extended coverage endorsement, in an amount representing not
less than one hundred percent (100%) of the full insurable
value [the term “full insurable value” shall mean the actual
replacement cost (excluding foundation and excavation cost and

- 26 -

 

cost of underground flues, pipes and drains), without deduction
for physical depreciation as such replacement cost shall be
adjusted by Tenant’s insurer every three years due to changes in the cost of construction factor,
at Tenant’s expense] and against war risks, as when and so long as insurance against such
risks is obtainable from the United States of America or an agency thereof at reasonable cost in
an amount representing not less than one hundred percent (100%) of the full insurable value: (b)
effect
and maintain in insurance companies satisfactory to Landlord,
boiler insurance, if the same shall be appropriate, in an amount
acceptable to Landlord and general liability insurance on the
demised premises for the benefit of Landlord, Tenant and Landlord’s
mortgagee and covering any liability that Landlord or Landlord’s
mortgagee may have regarding the demised premises for a total of One Million Dollars
($1,000,000.00) in respect to any one accident or disaster and One Million Dollars
($1,000,000.00) in respect of injuries or damage to any person, and Five Hundred Thousand Dollars ($500,000.00) in respect to property damage; (c) with respect
to the initial construction or any restoration, alterations or
changes in the demised premises that may be made by the Tenant in
excess of Fifty Thousand Dollars ($50,000.00) per job, also provide and keep in force for the benefit of the Landlord and
Landlord’s mortgagee, contingent liability and builder’s risk
insurance in the usual form, including coverage against collapse
(during the initial construction, the premiums for contingent
liability and builder’s risk insurance shall be included in

- 27 -

 

Tenant’s construction costs).; and in insurance companies satisfactory to the Landlord as to the amount of each policy and the identity of the respective
insurers; and (d) effect and maintain
in insurance companies satisfactory to Landlord, casualty rant
insurance in an amount sufficient to meet all real estate tax
payments for one year plus the amount of the minimum rent hereunder for a period of one
year from the date of the casualty. In the event of an insured loss, the insurance proceeds shall
be payable to Landlord and/or Landlord’s mortgagee and held subject to the provisions of Paragraph
14 hereof. Tenant agrees to deliver to Landlord all policies for fire and extended coverage
insurance
and duplicate policies or certificates from insurance companies with respect to the other insurance
coverages provided for herein,
at least five days prior to the effective date of the particular policy and from time to time
thereafter as new policies are issued.
Each insurance policy or certificate shall, to the extent obtainable, contain an agreement by the insurer that such policy shall
not be cancelled without at least ten (10) days prior written
notice to Landlord and to Landlord’s mortgagee and that any losses
shall be paid notwithstanding any act or neglect of Tenant or Landlord. If Tenant shall fail to
effect or maintain such insurance, Landlord may effect the same and Tenant agrees to pay on demand any
amount properly paid by Landlord for such purpose, and, in case of
its-failure to so pay, the same shall be added to and become part of the installment of rent next
due under the terms of this Lease. Landlord shall not be limited in the proof of any damages
which

- 28 -

 

Landlord
may claim against Tenant arising out of or by reason of
Tenant’s failure to provide and keep in force general liability
policies as aforesaid, to the amount of the insurance premium or
premiums not paid or incurred by Tenant which would have been
payable upon such insurance but shall also be entitled to recover
as damages for such breach, the uninsured amount of any loss, liability, damages, claims,
costs and expenses of suits, judgments and interest, suffered, or incurred by Landlord by
reason of accident or disaster occurring on the demised premises which should have been insured
hereunder. The Tenant shall not violate or permit to be violated any
condition of any of said
policies, and Tenant shall so perform and satisfy the requirements of the
companies writing such policies that at all times companies of
good standing shall be willing to write such insurance. Subject to approval by Landlord’s
mortgagee, all insurance to be carried by Tenant hereunder may be provided under blanket
coverage policies and certificates of such insurance may be submitted. Any of Tenant’s insurers
which are satisfactory to Landlord’s first
mortgagee shall be deemed also approved by Landlord for purposes
of this Lease.

     13. Tenant will indemnify and save harmless Landlord
from and against any and all liability, loss, damages, expenses,
cost of action, suits, interest, fines, penalties, claims and judgments (to the extent that
the same are not paid out of the
proceeds of any policies of insurance furnished by Tenant to Landlord pursuant to Paragraph 12 hereof) arising from injury or claim
of injury, from and after the date Tenant takes possession of the

- 29 -

 

demised premises and during the term of this Lease to persons or
property of any and every nature, and from any matter of thing,
growing out of the occupation, possession, use, management,
improvement, construction, alteration, repair, maintenance or
control of the demised premises, the buildings and improvements now or hereafter located
thereon, the facilities and equipment therein, the streets, sidewalks, vaults, vault spaces, curbs
and gutters adjoining the premises, the appurtenances thereto or the franchises and privileges
connected therewith (other than such as nay have been caused by the negligence of Landlord, its
agents or employees), or arising out of Tenant’s failure to perform, fully
and promptly, or Tenant’s postponement of compliance with, each and every term, covenant,
condition and agreement herein provided to be performed by Tenant. Tenant, at Tenant’s cost and
expense, will defend by counsel any and all suits that may be brought, and claims which may be
made, against Landlord, or in which Landlord may be impleaded with others, whether Landlord shall
be liable or
not, upon any such above-mentioned liability, loss, damages, expenses, costs of action,
suits, interest, fines, penalties,
claims and judgments and shall satisfy, pay and discharge any and
all judgments that may be imposed against Landlord in any such
action or actions in which Landlord may be a party defendant, or
that may be filed against the demised premises, the buildings and improvements thereon or the
appurtenances thereto, or any interest

- 30 -

 

therein,
and in the event of the failure of Tenant to pay the sum or sums for
which Tenant shall become liable as aforesaid, then Landlord may pay such sum or sums, with
all interest and charges which nay have accrued thereon, and the amount so paid
by Landlord shall be payable by Tenant to Landlord upon demand together with interest thereon
at the rate of two percentage
points above the prime interest rate charged by Riggs National Bank, Washington, D. C., from the
date of payment thereof by
Landlord plus reasonable counsel fees incurred by Landlord. Tenant’s obligations under the last
sentence of this Paragraph 13 shall be deemed satisfied if performed and discharged by an insurer or anyone else on Tenant’s behalf rather than Tenant itself.

     14. If any building, fixture or other improvements
hereafter situated on the demised premises (except movable trade fixtures, furniture and
furnishings) should at any time during the term of this Lease be damaged or destroyed by fire or otherwise, the
Tenant shall (except as otherwise hereinafter provided), at its sole cost and
expense (except to the extent that it shall be reimbursed out of insurance proceeds), restore
and rebuild the same as nearly as possible to the condition they were in immediately prior to
such damage or destruction, and such restoration and rebuilding, prosecuted with reasonable
diligence, shall be
completed as soon as reasonably possible. No damage or destruction
of any building or any of the fixtures or other property therein
shall be grounds for the termination of this Lease except as
hereinafter provided during the last two years of the term, or relieve the Tenant from any
obligation created or imposed by the
virtue of this Lease, any laws of the State of Virginia to the

- 31 -

 

contrary
notwithstanding including, but without limiting the
generality of the foregoing, Tenant’s obligation to make payment
of the rent and all other charges on the part of Tenant to be paid,
and the Tenant’s obligation to perform all other covenants and
agreements on the part of the Tenant to be performed. To the
extent Landlord shall receive rental payments from Tenant’s casualty rent insurance carrier,
Tenant shall be given a credit against the minimum rent and other charges payable by Tenant for the
amount so received for the period for which such payments are applicable.
All insurance proceeds payable on account of such damages arising
from insurance required under the provisions of this Lease shall be
paid by Landlord and/or its first mortgagee to
Tenant in the case of any particular casualty resulting in a loss payment not exceeding $50,000.00
in the aggregate, provided that the Tenant is not in default under this Lease. In case of
any particular casualty resulting in a loss payment in excess of $50,000.00
in the aggregate, the insurance proceeds shall be paid to and
held by the Landlord and/or its first mortgagee in an escrow
fund and shall be disbursed to Tenant, or its Contractor, from
time to time as construction progresses, subject to a ten percent
(10%) holdback payable upon satisfactory completion of the
restoration, rebuilding or repair. In the event any surplus of
insurance proceeds shall remain after
repairs or replacement of
said building shall have been made, such excess shall forthwith
be paid to Tenant. If there is no first mortgagee, insurance funds
in excess of $50,000.00 shall be held in escrow jointly by Landlord and Tenant for disbursement as required by this Lease

- 32 -

 

     In
the event that at least fifty percent of the demised
premises shall be damaged by fire or other insured casualty during
the last two years of the initial term of this Lease or any exercised extension thereof, then Tenant shall have the right to
terminate this Lease by giving written notice to Landlord within
thirty days of the date of casualty. In such event, all insurance proceeds, exclusive of proceeds
payable to Tenant for trade fixtures, trade equipment, inventory and other property of Tenant,
shall belong to Landlord. Unless this Lease shall have been terminated, Tenant shall have the right
to negotiate and adjust all loss with its insurance carriers.

     15. If the whole of the demised premises shall be taken or condemned by any competent
authority for any public or quasi public use or purpose, this Lease shall terminate as of the date
of title vesting in such authority.

     If more than 25% of the floor area of the building then constructed upon the demised premises
shall be so taken, either party hereto may elect, by giving written notice to the other, not more
than sixty
days after the date on which title shall vest in such authority, to terminate this Lease,
whereupon, this Lease shall cease and terminate as of the date of title vesting.

     It
is agreed, however, that Tenant may nullify Landlord’s election to terminate this Lease by
advising Landlord in writing within ten days after receipt of Landlord’s written notice of
termination that Tenant agrees that the minimum rent shall not be
reduced more than twenty-five percent, notwithstanding that more
than 25% of the floor area of the building then constructed upon
the demised premises shall have been taken or condemned, and that

- 33 -

 

Tenant desires this Lease to remain in full force and effect.

     In case of any taking or condemnation where this Lease
is not terminated, the entire award shall he the property of Landlord and Tenant hereby
assigns to Landlord all its right, title and interest in and to any such award. It is agreed, however,
that if a portion of the building is taken and this Lease is not
terminated, Tenant must restore
the building to a complete architectural unit and Landlord shall make available to Tenant that
portion of the award so needed by Tenant. In the event this
Lease is terminated as a result of a taking or condemnation, Landlord shall pay to Tenant the unamortized portion of the cost of
improvements made by Tenant to the demised premises (for which
Tenant has not previously been reimbursed by Landlord), as determined by Tenant’s federal income tax returns.

     Subject to the provisions of the third paragraph in
this Paragraph 15, the minimum rent in the case of any taking or
condemnation, shall be apportioned as of the date of vesting of
title and, if the term of this Lease shall not have ceased and
terminated as of said date, Tenant shall be entitled to a pro
rata reduction in the annual minimum rent payable hereunder based
on the proportion which the floor area of the space taken in the building then constructed on
the demised premises bears to the entire floor area of the building then constructed on the
demised premises immediately prior to such taking. There shall be no adjustment in minimum
rent unless a portion of the building located on the demised premises shall be taken.

     No such taking of any parking area shall give Tenant any
right to terminate this Lease unless the number of on-grade

- 34 -

 

parking spaces which can be provided on the remaining land shall be less than 75% of the
number of on-grade parking spaces which
were provided immediately prior to the taking. In the latter
event, Tenant shall have the right to terminate this Lease
by giving written notice to Landlord within thirty days of the
date of taking.

     16. Landlord covenants and agrees that Tenant on paying the rents and observing and keeping
the covenants, agreements and stipulations of this Lease on its part to be kept, shall lawfully,
peaceably and quietly hold, occupy and enjoy said demised premises during the term of this
Lease, without hindrance, ejection or molestation by Landlord or any person or persons lawfully
claiming under Landlord. Landlord warrants that it has good and marketable title to the demised
premises, subject only to those
exceptions listed in the Certificate of Title attached hereto as Exhibit “A-2”. In the event
that Tenant is unable to purchase a
leasehold insurance policy in an amount not less than $1,100,000.00 on or before the date upon which Landlord is required to deliver possession of the demised premises to
Tenant from any reputable title insurance company in the Metropolitan Washington area at normal rates with only those standard
printed exceptions under ALTA, Form B and those exceptions listed
in Exhibit “A-2”, Tenant’s sole remedy shall be to terminate this
Lease. Notice of such termination must be given by Tenant to
Landlord within thirty days after the aforesaid date.

     17. (a) It is agreed by and between the parties that
(1) if default be made by the Tenant in the payment of the rent above reserved, or any part
thereof, or (2) if default be made by Tenant in any of the covenants and agreements herein
contained, which default shall not be cured within fifteen (15) days after

- 35 -

 

notice to Tenant, or if such default is such as cannot reasonably
be cured within such period, then if such cure shall not be commenced within
fifteen (15) days after notice to Tenant of such
default and thereafter diligently completed, or (3) if the Tenant’s leasehold estate shall be
taken on execution, or (4) if the Tenant shall be declared
bankrupt or insolvent according to law,
or shall make an assignment for the benefit of creditors, then and in any such case, the Landlord
may lawfully, immediately or at any time thereafter and without notice or demand, and without
liability for any damage that may be done to the property of the Tenant, enter into and upon the
demised premises and improvements and repossess
the same and declare this Lease and the tenancy hereby created terminated, expel the Tenant and
those claiming under the Tenant,
and Landlord shall be entitled to the benefit of all applicable
laws respecting the speedy recovery of lands and tenements held over by tenants or proceedings in
ejectment, distraint, forcible entry and detainer, and all without prejudice to any remedies which
might otherwise be used by the Landlord for arrears of rent or for any breach of Tenant’s covenants
herein contained. Tenant further agrees that notwithstanding such re-entry, Tenant shall remain
liable for any rent or damages which may be due or sustained prior thereto, and Tenant shall
further be liable for the amount of the rent reserved under this Lease at the times herein
stipulated for payment of rent for the balance of the term, less any
amount received by Landlord
during such period from others to whom the demised premises may be rented on such terms and
conditions, whether for a longer or a shorter period than the term of this Lease, and at such
rentals as Landlord, in its sole discretion, shall deem proper. There shall be deducted from any
such

- 36 -

 

amounts received by Landlord from others any expenses, including, but not limited to
brokerage fees, legal fees, redecorating or remodeling expenses, incurred by Landlord in such
reletting.

     (b) It is agreed by and between the parties that the Landlord shall have at all times the
right to distrain for rent and other charges due and shall have a first and valid lien upon all
property of the Tenant on the demised premises whether or not exempt by law, for payment of the
rent and other charges herein reserved. Landlord agrees to subordinate its Landlord’s lien to the
financing by Tenant of its fixtures and trade items and inventory.

     (c) With respect to a default by Tenant in the payment of rent, Tenant shall have seven
days to cure such default after
receipt of written notice from Landlord. It is agreed, however, that Landlord shall not be
required to give such notice more than three times in any twelve-month period.

     18. Tenant shall have the right to assign this Lease and/or sublet all or a portion of the
demised premises without the consent of the Landlord.

     If this Lease shall be assigned or if the demised premises or any part thereof be sublet or
occupied by anyone other than Tenant, Landlord may collect rent from the assignee, subtenant or
occupant and apply the net amount collected to the rent herein reserved, but no such collection of
rent shall be deemed a release of Tenant from the further performance by Tenant of the covenants
on the part of Tenant herein contained.

     19. Each party hereto agrees that at any time (but not more often than twice in each
calendar year) during the term of

- 37 -

 

this Lease, within ten (10)
days after request by the other party hereto, it will execute,
acknowledge and deliver to such other party or to any prospective purchaser, assignee, sublessee or
mortgagee designated by such other party, a certificate stating: (a) that this Lease is unmodified
and in force and effect (or if there have been modifications, that
this Lease is in force and
effect as modified, and identifying the modification agreements);
(b) the date to which rent has been paid; (c) whether or not
there is any existing default by Tenant in the payment of any
rent or other sum of money hereunder, and whether or not there
is any other existing default by either party hereto with respect to which a
notice of default has been served, and if there is any such default,
specifying the nature and extent thereof; and (d) whether or not
there are any
set-offs, defenses or counterclaims against enforcement of the obligations to
be performed hereunder existing in favor of the party executing such
certificate.

     20. Any notices given or required hereunder shall be in
writing and shall be given or made by mailing the same by
certified mail, postage prepaid, addressed:

     To
the Landlord – Messrs. Walter J. Hodges and

	 	 	 
	

	 	Joseph P. Smyth, Esquire
	 
	 	 
	

	 	c/o Walter J. Hodges
	

	 	4697 South 34th Street
	

	 	Arlington, Virginia 22206
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	Joseph P. Smyth, Esquire
	

	 	6045 Wilson Boulevard
	

	 	Arlington, Virginia 22205

- 38 -

 

     To
the Tenant – Hechinger Company

	 	 	 
	

	 	Attn: Mr. John
W. Hechinger, President
	

	 	90l – 17th Street, N.E.
	

	 	Washington, D. C. 20002

     In the event the Tenant shall have assigned its entire interest in this Lease to one entity
or shall have sublet the entire demised premises to one entity, Landlord agrees to send a copy of
any notice sent to Tenant to the assignee or sublessee and such assignee or sublessee shall have
the same rights as Tenant to cure any default hereunder.

     21. Landlord and its agents shall have the right of
access to the demised premises during reasonable business hours
to inspect the same in order to assure compliance with this Lease, or to show the same to
prospective purchasers; and for a period of six (6) months prior to the expiration of the Lease
term, may erect “For Sale” or “For Lease” signs of such size and in such manner as not to
interfere with the operation of
Tenant’s business. Any such inspection or showing shall be
performed in such a manner so as not to unreasonably interfere with the conduct of Tenant’s
business.

     22. No waiver by Landlord of any breach by Tenant of any term, covenant, condition or
agreement herein and no failure by Landlord to exercise any right or remedy in respect of,
any breach hereunder, shall constitute a waiver or relinguishment for the future of any
such term, covenant, condition or agreement or of any subsequent breach of any such term,
covenant, condition
or agreement, nor bar any right or remedy or Landlord in respect
of any such subsequent breach, nor shall the receipt of any rent or additional rent, or any
portion thereof, by Landlord,

- 39 -

 

operate as a waiver of the rights of Landlord to enforce the payment of any other such rent or
additional rent then or thereafter in default, or to terminate this Lease, or to recover the
demised premises or to invoke any other appropriate remedy which Landlord may select as herein or
by law provided.

     23. The term “Landlord” as used in this Lease, so far
as covenants or obligations on the part of Landlord are concerned,
shall be limited to mean and include only the owner or owners at the time in question of the
fee of the demised premises, and in
the event of any transfer or transfers of the title to such fee Landlord herein named (and in case
of any subsequent transfers or conveyances, the then grantor) shall be automatically freed and
relieved from and after the date of such transfer and conveyance of all personal liability as respects the performance of any covenants or obligations on the
part of Landlord contained in this Lease thereafter to be performed, provided that, any
funds in the hands of Landlord or the then grantor at the time of such transfer, in which Tenant
has an interest, shall be turned over to the grantee and any amount then due and payable to
Tenant by Landlord or the then grantor under any provision of this Lease shall be paid to Tenant,
and, provided further that upon any such transfer, the grantee or transferee shall expressly
assume and agree to be bound by, subject to the limitations of this paragraph, all of the terms,
covenants and conditions in this Lease contained, to be performed on the part of Landlord it
being intended hereby that the covenants and

- 40 -

 

obligations contained in this Lease on the part of Landlord shall, subject as aforesaid,
be binding on Landlord, its successors and assigns, only during and in respect of their
respective successive periods of ownership.

     In the event Landlord assigns this Lease prior to the
payment by Landlord to Tenant of Tenant’s cost of construction,
such assignment shall be conditioned upon the joint and several unconditional guaranty by
Landlord to Tenant that such funds shall
be paid.

     24. In the event any provision of this Lease should
be disaffirmed in any bankruptcy, insolvency or similar proceedings involving Landlord, Tenant shall have sixty days within
which to cancel this Lease after receipt of written notice of
such action.

     25. The terms of this Lease shall be construed in
accordance with the laws of the State of Virginia.

     26. If requested by Landlord, Tenant agrees that
Landlord may record a short form of this Lease among the Land
Records of Fairfax County, Virginia and all costs of such recording, including, but not limited
to, documentary stamps, transfer taxes and other recording charges, shall be borne by Landlord.
Such recording costs shall be included as part of “Landlord’s
cost.” Both parties agree to execute a short for a Lease within
ten days after request therefor. The short form shall not include the rental provisions of this
Lease.

     27. Landlord and Tenant each warrant to the other
that neither has worked with any real estate broker with respect

- 41 -

 

to this transaction. Subject
to such representation, each party agrees to indemnify and to
hold harmless the other party from and against any real estate brokerage commissions payable
to any broker as a result of the signing of this Lease which either party may have to pay in
the event of a breach of this
warranty by the other party. In the event that it is determined
that a commission is payable to Andrew B. Phucas and/or Oak Park Realty as a result of this
transaction, Tenant covenants to pay such commission.

     28. If Landlord, or its successors or assigns, shall
desire at any time and from time to time to sell all or any
part of the demised premises, Landlord shall first obtain a bona fide written offer for the
purchase of all or part thereof.
Landlord shall promptly give written notice to Tenant of
such written offer. A true copy of the offer containing all
of the terms and conditions of the proposed purchase, with the
name and address of the purchaser shall be attached to the
written notice. Provided Tenant is not in default, for a period
of fifteen (15) days from the receipt of such written notice,
Tenant shall have the exclusive right and option to make the purchase of all or part of the
demised premises at the same price
(less brokerage commissions if Landlord does not have to pay a
brokerage commission as a result of the exercise by Tenant of its
right of first refusal), terms and conditions as are set out in
the offer. If Tenant timely exercises its option, settlement shall
be made within the same time, and upon the same terms and conditions

- 42 -

 

as set forth in the bona fide written offer. If the option is not timely exercised the
Landlord shall be true to take the sale to the bona fide offeror; provided, however, that the
sale shall be made within the time provided in the bona fide written offer and in strict
accordance with the price, terms and conditions
as are set forth in the bona fide written offer. The aforesaid right of first refusal shall
be applicable to transfers of partnership interests or capital stock or other instruments
representing a majority of ownership interest in an entity whose primary asset is the demised
premises.

     (b) In the event Tenant fails to execute the aforesaid
right of first refusal, then such right shall be deemed extinguished
upon consummation of the sale pursuant to the bona fide written offer; however, if
such sale is not consummated pursuant
to the bona fide written offer, the right of first refusal shall remain in effect.

     (c) The right of first refusal shall not be applicable to transfers by gift, will or
intestacy, nor shall same be applicable to transfers by Landlord to members of Landlord’s family
or to corporations or trusts substantially owned or controlled by
Landlord, or numbers of Landlord’s family, it being the intent
of the parties that any excluded transfers may be with or without
consideration, but shall not be the purposes of evading Tenant’s
right of first refusal, in any event, the right of first refusal
shall remain in full force and effect after such excluded transfers and shall be binding upon
the transferees, or any successors in title or interest to Landlord.

- 43 -

 

     29.
Time is of the essence in this Lease.

     30. So long as Tenant is not in default, all [ILLEGIBLE COPY]
counters and other trade fixtures and trade equipment may be removed from time to time during
the term of this Lease. At the end of the term hereof, Tenant shall remove all signs, personal
property and trade fixtures from the demised premises.

     31. In
the event that the applicable zoning laws are changed and the use of the demised
premises becomes a nonconforming use and the demised premises are damaged or destroyed, the
Tenant shall be relieved of its obligation to restore the improvements if the zoning laws prohibit
such restoration. In such event
the fire insurance proceeds, if any, (exclusive of insurance
proceeds payable to Tenant for trade fixtures, trade equipment, inventory and other property of
Tenant) will belong to Landlord.

     32. In the event that there is a complete denial of
access to the demised premises for more than fourteen days, Tenant
shall pay two percent of gross sales in lieu of minimum rent during the period in which complete
access is denied.

     33. Landlord and Tenant each hereby waives all claims for recovery from the other for any
loss or damage to any of its property insured under valid and collectible insurance policies to
the extent of any recovery collectible under such insurance. Such insurance policies shall provide
that the insurance shall not be prejudiced if the assureds have waived right of recovery from any
person prior to the date and time of loss or damage, if any, permitted by the applicable policy of
insurance. All insurance policies carried by either party covering the demised premises, including
but not limited to contents, fire and casualty insurance,

- 44 -

 

shall expressly waive any
right on the part of the insurer against the other party.

     34. If so requested by Landlord, Tenant agrees that
this Lease shall be subordinate to the lien of any mortgages or deeds
of trust that may
now or hereafter be placed upon the
demised premises and to any and all advances to be made thereunder and to the interest thereon,
and all renewals, replacements and
extensions thereof provided the mortgagee or trustees named in
said mortgages or deeds of trust shall agree in writing for the benefit of Tenant to recognize
this Lease and the rights of Tenant
hereunder and not disturb Tenant’s use and enjoyment of the demised premises in the event of
foreclosure if Tenant is not in
default beyond any permitted grace periods. The term “Tenant” as
used in this Paragraph 34 shall include Tenant’s assignees and subtenants.

     35. Tenant shall have the right to install signs upon
the demised premises provided that such signs and the installation thereof comply with all
applicable Governmental regulations.

     36. In each case specified in this Lease in which it
shall become necessary to resort to arbitration or appraisal, such arbitration or appraisal
shall be determined as provided in this Paragraph 36. The party desiring such arbitration or
appraisal shall give written notice to that effect to the other party, specifying in said notice
the name and address of the person designated to act as arbitrator or appraiser on its behalf.
Within fifteen (15) days after the service of such notice, the other
party shall give written notice to the first party specifying the
name and address of the person designated to act as arbitrator or

- 45 -

 

appraiser on its behalf. If
the second party fails to notify the first party of the appointment of its arbitrator or appraiser, as
aforesaid, within or by the time above specified, then the appointment of the second arbitrator or
appraiser shall be made in the
same manner as hereinafter provided for the appointment of a third arbitrator or appraiser in a
case where the two arbitrators or
appraisers appointed hereunder and the parties are unable to agree upon such appointment. The
arbitrators or appraisers so chosen shall meet within ten (10) days after the second arbitrator or
appraiser is appointed and if, within thirty (30) days after the second arbitrator or appraiser is
appointed, the said two arbitrators or appraisers shall not agree upon the question in dispute,
they shall themselves appoint a third arbitrator or appraiser who
shall be a competent and impartial person; and in the event of their being unable to agree
upon such appointment within ten (10) days after the time aforesaid, the third arbitrator or
appraiser shall be selected by the parties themselves if they can agree
thereon within a further period of fifteen (15) days. If the parties do not so agree, then
either party, on behalf of both, may
apply to any court of general jurisdiction in the County in which
the demised premises are located for the appointment of such third arbitrator or appraiser, and
the other party shall not raise any
question as to the Court’s full power and jurisdiction to entertain the application and make the
appointment. The decision of
the arbitrators or appraisers so chosen shall be given within a
period of sixty (60) days after the appointment of such third
arbitrator or appraiser. The decision in which any two arbitrators or appraisers so appointed
and acting hereunder concur shall

- 46 -

 

in all cases be binding and
conclusive upon the parties. Each party shall pay the fees
and expenses of the one of the two original arbitrators or appraisers appointed by such party,
or in whose stead as above provided, such arbitrator or appraiser was appointed, and the fees
and expenses of the third arbitrator or appraiser, if any, shall be borne equally by both
parties.

     37. Wherever the consent of either party is required, such consent shall not be
unreasonably withheld or delayed.

     38. Landlord
agrees to obtain for Tenant within 45 days from the date hereof a
Non-Disturbance Agreement from E. Guy Ridgely, et al, Trustees, recognizing this Lease and the
rights of Tenant hereunder in the event of foreclosure so long as
Tenant is not in default
hereunder beyond any permitted grace periods. Landlord agrees to keep the present Deed of Trust
free from default default until such Non-Disturbance Agreement is
obtained. The agreement of
Landlord in the preceding sentence shall be for the sole benefit of Tenant and for no other party.

     39. This
Lease shall be binding upon and inure to the benefit of the parties
hereto, their
heirs, successors and assigns.

     Witness the hands and seals of the parties hereto WITNESS:

	 	 	 	 	 	 	 	 	 
	/s/ Juanita E. Smith	 	 	 	/s/ Walter J. Hodges	 	(Seal)
	 	 	 	 	 	 	 
	 	 	 	 	Walter J. Hodges	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Juanita E. Smith	 	 	 	/s/ Joseph P. Smyth	 	(Seal)
	 	 	 	 	 	 	 
	 	 	 	 	Joseph P. Smyth	 	 
	ATTEST:
	 	 	 	 	 	 	 	 
	 	 	 	 	Hechinger Company	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ [ILLEGIBLE]

	 	 	 	By:
	 	/s/ John W. Hechinger	 	(Seal)
	 

	 	 	 	 	 	 	 	 
	/s/
[ILLEGIBLE]
	 	 	 	 	 	 	 	 

- 47 -

 

     Pamela
S. Smyth and Margaret L. Hodges join in the execution of this Lease for the
sole purpose of subordinating to the provisions of this Lease (and any and all modifications,
renewals, extensions or supplements to this Lease) any dower or other estate or interest which
either may have in the property which is the subject of this Lease and agree to grant such
further assurances of this subordination as may be requested.

WITNESS :

	 	 	 	 	 	 	 	 	 
	/s/
Juanita E. Smith

	 	 	 	 	 	/s/ Pamela S. Smyth
	 	(Seal)
	 

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Pamela S. Smyth	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Juanita E. Smith

	 	 	 	 	 	/s/ Margaret L. Hodges
	 	(Seal)
	 

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Margaret L. Hodges	 	 

 

 

Exhibit “A”

(Plat of Property)

 

 

County of Arlington

Commonwealth of Virginia

     I
hereby certify that on this 28th day of December
1973, before me, a notary Public, personally appeared Walter J.
Hodges and Margaret L. Hodges and acknowledged that they executed
the within Lease for the purposes therein contained.

	 	 	 
	

	 	/s/ Juanita E. Smith
	

	 	 
	

	 	Notary Public

My Commission Expires:

County of Arlington

Commonwealth of Virginia

     I
hereby certify that on this 28th day of December
1973, before me, a Notary Public, personally appeared Joseph P.
Smyth and Pamela S. Smyth and acknowledged that they executed the
within Lease for the purposes therein contained.

	 	 	 
	

	 	/s/ Juanita E. Smith
	

	 	 
	

	 	Notary Public

My Commission Expires:

District of Columbia

     I
hereby certify that on this 28th day of December
1973, before me, a Notary Public, in and for the State of Maryland, personally appeared John W. Hechinger President of Hechinger Company, a body
corporate, and acknowledged
that he executed the within Lease on behalf of said corporation in
his corporate capacity as President.

	 	 	 
	

	 	/s/ [ILLEGIBLE COPY]
	

	 	 
	

	 	Notary Public

My Commission Expires:

 

 

NOTES:

	1.  	THIS PLAT SHOWS ALL COVENANTS, RESTRICTIONS, EASEMENTS OR
DEDICATIONS OF RECORD WHICH MAY EXIST IN THE CHAIN OF TITLE
AS SHOWN ON THE SMYTH AND McDOWELL CERTIFICATION OF TITLE
DATED OCTOBER 30, 1973.
	 
	2.  	THIS PLAT IS DELINEATED ON ASSESSMENT MAP 01.2 AND IS ZONED
CG.
	 
	3.  	THIS PROPERTY IS SUBJECT TO COMPLIANCE WITH FAIRFAX COUNTY
ZONING AND SITE PLAN ORDINANCES PRIOR TO ISSUANCE OF A BUILDING PERMITS.
	 
	4.  	PROPERTY NOW IN THE NAME OF SUNSET DEVELOPMENT CORPORATION OF NORTHERN VIRGINIA AS RECORDED IN
DEEDBOOK 2251 AT PAGE 181.

SURVEYORS CERTIFICATE

     I HEREBY CERTIFY TO THE
HECHINGER COMPANY THAT THIS SURVEY IS CORRECT AS TO THE AREAS SHOWN, THAT RIGHTS-OF-WAY AND
EASEMENTS OF RECORD
ARE DELINEATED HEREON, THAT THE POSITION OF ALL THE EXISTIN IMPROVEMENTS ON THE ABOVE DESCRIBED
PROPERTY HAVE BEEN CAREFULLY ESTABLISHED BY A [ILLEGIBLE COPY]
SURVEY OR EQUIVALENT.

	 	 	 
	[SEAL]

	 	12/5/73
	

	 	 
	/s/
[ILLEGIBLE COPY]

	 	DATE
	 	 	 
	CERTIFIED
LAND SURVEYOR

	 	 

PLAT

SHOWING THE PROPERTY OF

SUNSET DEVELOPMENT

CORPORATION OF

NORTHERN VIRGINIA

MASON DISTRICT

FAIRFAX COUNTY, VIRGINIA

			
	 	 	 
	SCALE: [ILLEGIBLE COPY]
	 	DECEMBER 5, 1973

REV. DECEMBER 13, 1973

WALTER L. PHILLIPS

INC.

CERTIFIED CIVIL ENGINEERS AND LAND SURVEYORS

901 W. BROAD STREET FALLS CHURCH, VIRGINIA

 

VALTER L. PHILLIPS

INCORPORATED

CIVIL ENGINEERS

LAND SURVEYORS

PLANNERS

DIRECTORS

WALTER L. PHILLIPS, P.E.

CHAIRMAN OF THE BOARD

W. LEE. PHILLIPS, JR. P.E.

PRESIDENT

ROBERT A. KINSEY, P.E.

VICE PRESIDENT

ASSOCIATE

JERRY A. McKNIGHT, C.LS.

Description of the Property of Sunset Development Corporation
of Northern Virginia, Mason District, Fairfax County, Virginia.

     “Beginning at a point in the north line of Leesburg Pike,
Virginia Route 7, as widened, said point marks the southeast
corner of the L. P. Corporation; thence with the east line of
said L. P. Corporation and then continuing with the east line
of Hardin Corporation, N 19° 18’ 50” E, 611.54 feet to a point
marking the northeast corner of the Hardin Corporation in the
south line of the Amanda Corporation; thence with the south
line of the Amanda Corporation and continuing with the south
line of Payne, S 61° 32° 20” E, 423.31 feet to a corner to
Payne; thence continuing with the west line of Payne,
S 19° 18’ 50” W, 614.54 feet to a point in the north line of
Leesburg Pike, Virginia Route 7, as widened, marking the
southwest corner of Payne; thence with the said north line of
Leesburg Pike, Virginia Route 7, as widened, N 61° 08’
20” W, 423.80 feet to the beginning and containing 5.8817 acres.”

	 	 	 
	

	 	/s/ Walter L. Phillips
	

	 	 
	

	 	Walter L. Phillips, C.L.S.
	

	 	December 10, 1973

901 W. BROAD STREET

FALLS CHURCH, VA, 22048

(705)532-5163

Exhibit A-1

(Description of Property)EX-10.21(A) Extension Agremnt Dated April 28, 2005

 

Exhibit 10.21a

April 28, 2005

Via Certified Mail – Return Receipt Requested

Mr. Andy August

August, Eastwood, August

2900 Monroe Avenue

Rochester, NY 14618

	 	 	 
	RE:

	 	Lease agreement by and between August, Eastwood, August (“Landlord”) and Monro Muffler Brake,
Inc. (“Tenant”) for premises situate at 3000 West Henrietta Road, Rochester, NY [MMB #8]

Dear Andy:

Please accept this letter as Monro Muffler Brake, Inc.’s official notification of our intent to
renew said lease agreement for the five-year renewal period commencing on December 1, 2005 and
expiring November 30, 2010. The rent for said renewal period shall be $3,333.00 per month.

Tenant shall have no renewal options remaining.

Please do not hesitate to contact me at 800-876-6676 ext. 384 if you have any questions relative to
the renewal.

Yours truly,

/s/Thomas M. Aspenleiter

Thomas M. Aspenleiter

VP Real Estate

TMA:mc

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