Document:

EXHIBIT 10.35

ASSUMPTION AND ASSIGNMENT AGREEMENT

THIS ASSUMPTION AND ASSIGNMENT AGREEMENT ("Agreement") is made as of this 16th day of September, 2014, by and among Coldwater Creek Merchandising & Logistics, Inc., a Delaware corporation, as debtor and debtor in possession ("Assignor"); Comenity Servicing, LLC, a Texas limited liability company ("Assignee"); and Foothill Shadows, LLC, a Delaware limited liability company ("Master Landlord").

	I.	The Leases.

Assignor is the lessee and Master Landlord is the lessor under the lease identified on Exhibit "A" (the "Master Lease") and for the premises as more specifically described on Exhibit "B" attached hereto (the "Property").  Assignor is also the sublandlord and Assignee is the subtenant under the sublease identified on Exhibit "C" (the "Sublease") and for the premises also more specifically described on Exhibit "D" (the "Premises").

	II.	The Assignor's Bankruptcy Case

Assignor, along with its affiliated debtors and debtors in possession (collectively, the "Debtors"), has filed a voluntary petition for relief pursuant to chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§101 et. seq. (as amended, the "Bankruptcy Code"), in the United States Bankruptcy Court for the District of Delaware (together with any other court having proper jurisdiction, the "Bankruptcy Court"), as Case No. 14-10867 (BLS).

	III.	The Assignor's Assignment of the Master Lease

Assignor has agreed to assign and Assignee has agreed to assume the Master Lease on the terms and conditions set forth herein (the "Assignment"), and as authorized under sections 363 and 365 of the Bankruptcy Code and proposed by the Third Amended Joint Plan of Liquidation of Coldwater Creek Inc. and its Debtor Affiliates Pursuant to Chapter 11 of the

Bankruptcy Code, dated August 8, 2014 [Docket No. 835] (the "Plan"), and Assignor has determined that an assumption and assignment of the Master Lease in accordance with sections 363 and 365 of the Bankruptcy Code is in the best interests of its creditors and interest holders.

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows:

A.  Summary of Transaction - On and after the Closing Date (as defined herein) and pursuant to the terms and conditions and for the consideration outlined below, Assignor hereby assigns to Assignee all of Assignor's right, title, and interest under the Master Lease; provided, however, that the Assignment contemplated herein is subject to and conditioned upon the Master Landlord and the Assignee agreeing to and executing the Second Amendment to the Amended and Restated Lease Agreement that is acceptable in both form and substance to the Assignee and Master Lessor in their discretion (the "Comenity Amendment").  For the avoidance of doubt, the Assignment, the Closing (as defined herein) and the Closing Date shall not occur unless and until the Comenity Amendment is agreed and executed by the Master Landlord and the Assignee.  Any security deposit presently on account with the Master Landlord will be refunded by Master Landlord to Assignor (to the extent not previously applied by the Master Landlord).  Except as agreed in writing by the Master Landlord (including, without limitation, in the Comenity Amendment), Assignee hereby recognizes and acknowledges that the Master Landlord's rights to full performance of all terms, conditions and covenants of the Master Lease remains in effect on and after the Closing Date. Except as agreed in writing by the Master Landlord (including, without limitation, in the Comenity Amendment), Assignee assumes all of the terms, conditions and covenants of the Master Lease as lessee thereunder on and after the Closing Date.  Subject to the payment of the Cure Payment (as defined below), Assignee does

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not assume any obligations as lessee under the Master Lease prior to the Closing Date, including, but not limited to, any Additional Rent (as defined in the Master Lease) allocable to the period occurring prior to the Closing Date.  Further, pursuant to section 365(f) of the Bankruptcy Code, on and after the Closing Date, Assignor and the Debtors shall be relieved from any liability for any breach of or default in performance of the Master Lease, and Assignee shall indemnify and hold Assignor and the Debtors harmless from any breach of the Master Lease or default in the performance of any terms, conditions and covenants contained in the Master Lease occurring after the Closing Date. The Master Landlord has agreed to accept from Assignee the payment of $    (the "Cure Payment"), in full satisfaction of Master Landlord's claims against Assignor and the Debtors for monies due and owing but not paid under the Master Lease, and the Cure Payment together with the Assignment hereunder shall relieve the Assignor and the Debtors of all liability arising under the Master Lease on account of such sums due and owing but not paid.   In addition, the Assignor shall remit payment prior to Closing for its share of all outstanding property taxes, owing and accrued but not yet due, as of the Closing Date.

B.  Sublease – In accordance with the terms of the Plan, the Sublease shall be deemed rejected, and no further amounts or obligations with respect to the Sublease shall be due from the Assignee to the Assignor.

C.  Consideration - The total consideration to be paid by Assignee is the Cure Payment, payable to Master Landlord at the Closing (as defined herein). The Cure Payment is to be released and paid upon Closing.

D.  Closing - The Closing of the this Agreement ("Closing") shall take place on the first business day following the date on which the Approval Order (defined below) is entered (the "Closing Date"), provided that (i) the Closing and the Closing Date shall only occur

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to the extent that the conditions specified in this Agreement (including, without limitation, execution of the Comenity Amendment) are satisfied, and (ii) the Approval Order shall include a ruling that the fourteen (14) day stay period provided under F.R.B.P. Nos. 6004(g) and 6006(d) shall not apply to the transactions contemplated herein.

E.  Bankruptcy Court Approval - Enforceability of this Agreement is further conditioned upon the Assignor obtaining the execution and entry of a final and non-appealable order by the Bankruptcy Court approving, among other things, the assignment and assumption of the Master Lease substantially in the form set forth in this Agreement, the rejection of the Sublease, this Agreement, and authorizing Assignor to enter into this Agreement and all other agreements necessary to effectuate the intent of this Agreement (the "Approval Order").

F.  Lease Documents - To induce Assignee to execute, deliver and perform this Agreement, Assignor represents and warrants to the best of its actual knowledge to Assignee and agrees on and as of the date hereof and continuing through and including the Closing Date that Exhibit "A" identifies all of the instruments through which Assignor derives its Master Lease (including all amendments thereto).  Complete and correct copies of the Master Lease have been delivered to or made available for inspection by Assignee, and the Master Lease has not been modified in any material respect except to the extent that such modifications are disclosed by the copies delivered to or made available for inspection by Assignee. Except as required by the Bankruptcy Code or as otherwise provided herein or in this Agreement, Assignor makes no representations and warranties, express or implied, concerning the Master Lease, Premises or Property.

G.  Free and Clear of Liens & Encumbrances - Upon entry of the Approval Order and the occurrence of all conditions precedent to the effectiveness of the Assignment

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(including, without limitation, the execution of the Comenity Amendment), and except as otherwise provided in this Agreement, the assignment of the Master Lease shall be free and clear of any liens, security interests, encumbrances, pledges or other interests.  In order to clear title to the Property, Assignor and Assignee agree to enter into a Sublease Termination Agreement in substantially the form of Sublease Termination Agreement attached hereto as Exhibit "E."

H.  Use - Assignee shall use the Property for such purposes as are authorized under the Master Lease, the Comenity Amendment and applicable law.

I.  Possession - The Assignor will deliver possession of the Property to Assignee at Closing.  Assignor shall deliver possession of the Property in its as-is, where-is condition, and the same shall be free of any and all subleases and rights of possession under Section 365(h) of the Bankruptcy Code; provided, however, that Assignee agrees to license to Assignor (the "License") until December 1, 2014, or such earlier date as Assignor may determine, at no cost to Assignor, a portion of the Property identified on Exhibit "F" as the "CWC Retained Space", together with the right to use up to 10 parking spaces, and fitness and kitchen facilities, all subject to Assignee's reasonable rules and regulations, in substantially the form of License Agreement attached hereto as Exhibit "E".  Prior to the expiration or earlier termination of the License Agreement, Assignor intends to remove the following personal property from the Property: [____________________________] Any of Assignor's personal property not removed by Assignor by the end of the License shall be deemed abandoned and conveyed to Assignee, and Assignee may dispose of and/or retain same without liability to Assignor.

J.  Prorations - On the Closing Date, Assignor and Assignee shall make all normal and customary real estate prorations, and escrows consistent with the terms and

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conditions of this Agreement, including real estate taxes, water, sewer and utility charges, rents, CAM and other charges payable under the Master Lease, and income and expenses under any existing subleases affecting the Property (other than the Comenity Sublease).

K.  Initial Rent - Commencing on the Closing Date, Assignee shall be responsible for, and shall pay to the Master Landlord all rent and other obligations and charges due under the Master Lease in accordance with the terms of the Master Lease, as amended by the Comenity Amendment. Assignee also agrees to reimburse Assignor for any rent (or other Lease Charges) paid by Assignor to the Master Landlord for any period subsequent to the Closing Date. Any such amounts shall be paid by Assignee within five (5) days of the Closing Date.

L.  Representations and Warranties - Assignor represents and warrants to Assignee (which representations and warranties shall survive the Closing Date) as to itself, that to the best of Assignor's knowledge, as of the date hereof and as of the Closing Date:

 (i)  The amendments listed on Exhibit "A" comprise all of the amendments included in Assignor's lease file and Assignor will deliver to Assignee its entire lease file on the approval date (including, if available, all maintenance records, annual reconciliations, tax bills, plans, research and correspondence), hereinafter the "Lease File". Assignee acknowledges that the Lease File shall not contain any attorney-client privileged correspondence or information.

(ii)  Assignor is the tenant under the Master Lease and has conferred no rights upon any third party to use or occupy the Property described therein (by way of license, sublease or otherwise), except in the ordinary course of business and as either previously disclosed to Assignee or otherwise appearing in the public records.

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(iii)  As of the Closing Date, and to Assignor's knowledge, there will be no contracts entered into by Assignor for services or otherwise on account of maintenance or repairs which are or will be binding on Assignee or the Property.

 (iv)  Upon payment of the Cure Payment and satisfaction of all property taxes, owing and accrued but not yet due, Assignor will not be in default under the Master Lease.

M.  Miscellaneous

(i)  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and to the extent permissible under the laws of the state of Idaho. The parties agree that the Bankruptcy Court shall have exclusive jurisdiction over any disputes hereunder, and they each hereby consent to such jurisdiction.

(ii)  This Agreement sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby and supersedes any prior instruments, arrangements and understandings relating to the subject matter hereof, except the Master Lease and all amendments thereto, including the Comenity Amendment.

(iii)  Assignor may assign its rights and obligations hereunder to any trustee or other successor in interest appointed by the Bankruptcy Court. Assignee may not assign its rights and obligations hereunder to any party without the Assignor's, or, as applicable, the trustee's or other successor in interest's, consent, which consent shall not be unreasonably withheld, and following entry of the Approval Order, any assignment of this Agreement by Assignee must also be permitted by the terms of the Master Lease or agreed to by the Master Landlord (if so required).

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(iv)  This Agreement may be executed with counterpart signature pages or in more than one counterpart, all of which shall be deemed one and the same agreement, and shall become effective on or after the Closing Date when or one or more counterparts have been signed by each of the parties and delivered to all the parties.

(v)  Any notice, demand, request or other communication which any party hereto may be required or may desire to give hereunder ("Notices") shall be in writing and shall be given as follows: (i) by hand delivery; (ii) by Federal Express or other reputable express courier service; (iii) electronic mail; or (iv) by facsimile transmission (other than for notices of default):

If to Assignor:

Coldwater Creek Merchandising & Logistics, Inc.

1 Coldwater Creek Drive

Sandpoint, Idaho 83864

 ATTN: Vincent G. Toenjes, Esq.

Vince.Toenjes@thecreek.com

With a copy to:

Sherman & Sterling LLP

599 Lexington Avenue

New York, NY 10022

 ATTN: Douglas P. Bartner

DBartner@Shearman.com

If to Assignee:

Comenity Servicing LLC

3100 Easton Square Place

Columbus, Ohio 43219

ATTN:  Bruce McClary

Bruce.McClary@alliancedata.com

With a copy to:

ADS Alliance Data Systems, Inc.

7500 Dallas Parkway, Suite 700

Plano, Texas 75024

ATTN:  Legal Department

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If to Master Landlord:

Foothill Shadows, LLC

5141 North 40th Street, Suite 500

Phoenix, Arizona 85018

ATTN: Robert C. Samuel

Bob@samuelandcompany.com

With a copy to:

Dean & Kolts, Attorneys at Law

320 E. Neider Avenue, Suite 103

Coeur d'Alene, Idaho 83815

ATTN: Charles R. Dean, Jr.

CRDeanjr@gmail.com

or at such other address or to such other addressee or to such other facsimile number as the party to be served with Notice shall have furnished in writing to the party seeking or desiring to serve Notice as a place for the service of Notice.  Notices shall be deemed to have been rendered or given on the date received or on the date they are deemed to be received as hereinafter set forth.  The inability to deliver Notices because of changed address of which no notice was given, or rejection or refusal to accept any Notice offered for delivery shall be deemed to be receipt of the Notice as for the date of such inability to deliver or rejection or refusal to accept delivery.

[Remainder of page intentionally left blank.  Signatures follow on next page]

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IN WITNESS WHEREOF, this Agreement has been duly executed this _____ day of September, 2014.

ASSIGNOR:

 

Coldwater Creek Merchandising & Logistics, 

Inc., a Delaware corporation

By:/s/ Vince Toenjes

Name: Vince Toenjes

Its:  Authorized Representative

 

 

ASSIGNEE:

Comenity Servicing LLC, a Texas limited 

liability company

By: /s/ Sallie Komitor

Name: Sallie Komitor

Its:  President

MASTER LANDLORD:

Foothill Shadows, LLC, a Delaware limited 

liability company

Samuel & Co., Inc.

By: /s/ Robert C. Samuel

Name: Robert C. Samuel

Its:  Manager

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SECOND AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT

This SECOND AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT ("Second Amendment") is entered into effective as of September 16, 2014 (the "Effective Date"), by and between FOOTHILL SHADOWS, LLC, a Delaware limited liability company ("Lessor"), and COMENITY SERVICING LLC, a Texas limited liability company, as successor in interest to Coldwater Creek Merchandising & Logistics Inc., a Delaware corporation ("Lessee").

R E C I T A L S :

A.  Lessor and Coldwater Creek Inc., as lessee, entered into that certain Amended and Restated Lease Agreement dated July 19, 2007, as amended by Assignment and Assumption of Leases dated January 31, 2008 ("First Assignment"), between Coldwater Creek Inc., as Assignor, and Coldwater Creek U.S. Inc., as Assignee, as further amended by Amendment to Amended and Restated Lease Agreement dated April 22, 2009 ("Lease Amendment"), between Lessor and Coldwater Creek Inc. and Coldwater Creek U.S. Inc., collectively, as lessee, as further amended by Assignment and Assumption of Leases, dated July 5, 2009 ("Second Assignment"), between Coldwater Creek U.S. Inc., as assignor, and Coldwater Creek Merchandising & Logistics Inc., as assignee, as amended by Assumption and Assignment Agreement dated September 16, 2014 between Coldwater Creek Merchandising & Logistics Inc., as assignor, and Lessee, as assignee (collectively, the "Existing Lease").

B.  The Existing Lease and this Second Amendment are collectively referred to herein as the "Lease."

C.Pursuant to the Lease, Lessor currently leases to Lessee and Lessee currently leases from Lessor that certain space containing approximately 68,000 square feet of rentable area located in the building located at 751 Hanley Avenue, Coeur d'Alene, Idaho (the "Existing Premises") and 46,000 square feet of rentable area located in the building located at 745 Hanley Avenue, Coeur d'Alene, Idaho (the "Expansion," and together with the Existing Premises, the "New Premises").

D.  Lessor and Lessee now desire to amend the Lease to modify various terms and provisions of the Lease, all as hereinafter provided.

E.  Except as otherwise expressly provided herein to the contrary, all capitalized terms used in this Second Amendment shall have the same meanings given such terms in the Lease.

A G R E E M E N T:

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.  Original Lease.  The Original Lease was amended in its entirety by the terms of the Existing Lease.  As of July 19, 2007, the Original Lease terminated and was of no further force or effect.

2.  Lease Documents.  The definition of "Lease Documents" in the Existing Lease is hereby amended to read as follows: "Lease Documents" means the Existing Lease as amended by this Second Amendment, and any other instruments, agreements, certificates and documents necessary to consummate the transactions contemplated in the Existing Lease as amended by this Second Amendment.

3.  Lease Term.  If, on or before March 31, 2026 (the "Termination Deadline"), Lessee provides Lessor with written notice of Lessee's intent to terminate this Lease (the "Termination Notice"), this Lease shall terminate on March 31, 2027 (the "Termination Date").  Upon termination of this Lease pursuant to Lessee's termination right set forth above, this Lease and all of Lessor's and Lessee's obligations under this Lease shall terminate as of the Termination Date.  If Lessee fails to deliver the Termination Notice on or before the Termination Deadline, this Lease shall remain in full force and effect.

4.  Condition of Premises.    Lessee shall continue to occupy the Existing Premises from and after the date of execution of this Second Amendment in its current "AS IS" condition.

5.  Insurance.  Sections 6.5 and 6.6 of the Lease are deleted in their entirety and the following Sections 6.5 and 6.6 are inserted into the Lease in replacement thereof:

"Section 6.5. Insurance Required. At all times throughout the Lease Term, the Lessee shall, at its sole cost and expense, maintain or cause to be maintained insurance against such risks and for such amounts as are customarily insured against by businesses of like size and type and shall pay, as the same become due and payable, all premiums with respect thereto, including, but not necessarily limited to:

(a)  Insurance against loss or damage by fire, lightning and other casualties customarily insured against, with a uniform standard extended coverage endorsement, such insurance to be in an amount not less than the full 100% replacement value of the completed buildings and improvements, exclusive of footings and foundations, as agreed by insurer selected by the Lessee. Said insurance shall be provided by a recognized license insurance carrier with an AM Best Rating of A-VII or better.

(b)  Workers' compensation insurance, disability benefits insurance and each other form of insurance which the Lessee or any permitted sublessee is required by Law to provide, covering loss resulting from injury, sickness, disability or death of employees of the Lessee or any permitted sublessee who are located at or assigned to the New Premises. This coverage shall be in effect from and after the Original Lease Date with respect to the New Premises, or on such earlier date as any employees of

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the Lessee, or any permitted sublessee, contractor or subcontractor of Lessee, first occupy the New Premises.

(c)  Commercial General Liability Insurance protecting the Lessor and the Lessee against loss or losses arising from personal injury, including but not limited to, premises-operations, broad form property damage, products/completed operations, contractual liability, independent contractors, personal injury and advertising injury and liability assumed under an insured contract with a limit of liability of not less than $1,000,000 each occurrence, $2,000,000 aggregate and with an excess liability coverage in an amount not less than $5,000,000 each occurrence protecting the Lessor and the Lessee against any loss or liability or damage for personal injury, including bodily injury or death, or property damage.

Section 6.6. Additional Provisions Respecting Insurance. All insurance required by Section 6.5 hereof or under any other provision of this Lease Agreement shall be procured and maintained in financially sound and generally recognized responsible insurance companies selected by the entity required to procure the same and authorized to write such insurance in the State.  Lessee shall be responsible for the payment of all applicable deductibles under the aforementioned coverages.  Lessee shall provide for at least sixty (60) calendar days' prior written notice of a restriction, cancellation or modification to the policies thereof to the Lessor and Lender. The policies under Section 6.5 shall contain appropriate waivers of subrogation. The policies under Section 6.5(c) shall list Lessor as an additional insured on the insurance required by this Lease.  Lessee shall provide proof of insurance in the form of an Acord 28 (2014/01) or equivalent to Lessor."

6.  Assignment and Subleasing by Lessee.  Section 9.2 of the Lease is deleted in its entirety and the following Section 9.2 is inserted into the Lease in replacement thereof:

"Section 9.2. Assignment and Subleasing by Lessee.  Lessee shall have the right to assign this Lease or sublet all or part of the New Premises without the prior consent of Lessor to any entity directly or indirectly controlling, controlled by, or under common control with Lessee as of the date on which such assignment or subletting is being made (any such entity being a 'Related Party,' and any such assignment or sublease being a 'Related Party Assignment,') which shall include without limitation an assignment of Lessee's interest under this Lease by operation of law or as a consequence of a merger of Lessee into or with a Related Party, a change of control of or change of ownership of Lessee provided a Related Party thereafter controls Lessee, or a sale of substantially all of Lessee's assets to a Related Party.   Lessee shall not have the right to assign this Lease or sublet all or part of the New Premises to any party other than a Related Party unless Lessor consents to such assignment or sublet, which

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consent shall not be unreasonably withheld, conditioned or delayed.  Each assignment of this Lease or sublease of all or a portion of the New Premises shall also assign all rights of Lessee under this Lease to the assignee or sublessee, respectively, including, without limitation, any options to renew the term of this Lease, options to purchase the Building or the New Premises, and first rights of refusal to purchase the Building or the New Premises or lease additional space in the Building.    Lessor shall not have the right of recapture of the New Premises in the event of any assignment or sublease, regardless of whether such assignment or sublet is to a Related Party or a third party.  Notwithstanding the foregoing, no assignment or sublease, with or without Lessor's consent, shall relieve Lessee, or any guarantor of Lessee's obligations under this Lease, from any liability under this Lease."

7.  Notices.  Any notice required or permitted to be given shall be in writing and may be given by: (a) registered or certified mail and shall be deemed given on the third day following the mailing date; or (b) overnight delivery and shall be deemed delivered the following day. Notices and payments shall be delivered to the following addresses, which may be changed by written notice:

To the Lessor:                      Foothill Shadows, LLC

5141 North 40th Street, Suite 500

Phoenix, Arizona 85018

ATTN:  Robert C. Samuel

Fax No.: 602.840.9490

To the Lessee:                      Comenity Servicing LLC

3100 East Square Place

Columbus, Ohio 43219

ATTN:  Legal Department

With a copy to:                    Comenity Servicing LLC

3100 Easton Square Place

Columbus, Ohio 43219

ATTN:  Bruce McClary

ADS Alliance Data Systems, Inc.

7500 Dallas Parkway, Suite 700

Plano, Texas 75024

ATTN:  Legal Department

8.  Sublease.  The terms of this Second Amendment are conditioned upon the execution by all necessary parties of all documents required to terminate that certain Sublease Agreement dated effective as of July 25, 2013, between Coldwater Creek U.S. Inc., a Delaware corporation, as Sublandlord, and Lessee, as Subtenant, as amended by Sublease Amendment No. 1 entered into on  October 1, 2013, but effective as of July 26, 2013, by and between Coldwater

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Creek Merchandising & Logistics Inc., a Delaware corporation, Coldwater Creek U.S. Inc., a Delaware corporation, and Lessee.

9.  Bankruptcy Court Approval.  The terms of this Second Amendment are conditioned upon the United States Bankruptcy Court for the District of Delaware, the court administering the chapter 11 proceedings of Coldwater Creek Inc. and certain affiliated entities, Case No. 14-10867 (BLS), approving (a) the assumption and assignment of the Existing Lease from Coldwater Creek Merchandising & Logistics Inc., as assignor, to Lessee, as assignee, and (b) the Sublease termination.

10.  Brokers.  Lessor and Lessee each hereby represents and warrants to the other party that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Second Amendment and that it knows of no other real estate broker or agent who is entitled to a commission in connection with this Second Amendment.  Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments and costs and expenses (including, without limitation, reasonable attorneys' fees) with respect to any leasing commission or equivalent compensation alleged to be owing in connection with this Second Amendment on account of the indemnifying party's dealings with any real estate broker or agent (other than the Brokers).

11.  Counterparts.  This Second Amendment may be executed in multiple counterparts, each of which is to be deemed original for all purposes, but all of which together shall constitute one and the same instrument.

12.  Severability.  If any term or provision of this Lease shall be invalid or unenforceable to any extent, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall be valid and enforced to the fullest extent permitted by law.

13.  Conflict.  In the event of any conflict between any provisions of this Second Amendment and any provisions of the remainder of the Lease, the provisions of this Second Amendment shall control.

14.  No Further Modification.  Except as set forth in this Second Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, this Second Amendment has been executed as of the day and year first above written.

LESSOR:

FOOTHILL SHADOWS, LLC,

a Delaware limited liability company

Samuel & Co., Inc.

By: /s/ Robert C. Samuel

Name: Robert C. Samuel

Its:  Manager

LESSEE:

COMENITY SERVICING LLC,

 a Texas limited liability company

 

By: /s/ Sallie Komitor

Name: Sallie Komitor

Title: President

  

6Exhibit 10.36

Lease Agreement

regarding

Koningsweg 101-103 in

's-Hertogenbosch

between

C.V. Kingsroad

and

Brand Loyalty International B.V.

LEASE AGREEMENT FOR OFFICE SPACE

and other commercial premises subject to Article 230a of Book 7 of the Dutch Civil Code

Model contract as established by the Real Estate Council (ROZ) on July 30, 2003.

Reference to this model and the use thereof is only permitted if the completed, added or deviating text can be clearly recognized as such. Additions and deviations should preferably be included in the section "special provisions." Any liability for adverse effects arising from the use of the text of the model is excluded by the ROZ.

 

The undersigned:

C.V. Kingsroad, established at Het Zuiderkruis 1, 5215 MV 's-Hertogenbosch,

hereinafter referred to as "Lessor,"

registered in the Trade Register under number 55598404, hereby duly represented by Kingsroad 88 B.V., registered in the Trade Register under number 50984357, hereby duly represented by Mr. A.L.G van Tuel,

and

Brand Loyalty International B.V., established at Het Zuiderkruis 1, 5215 MV 's-Hertogenbosch,

hereinafter referred to as "Lessee,"

registered in the Trade Register under number 17116091, hereby duly represented by Mrs. C.M.P. Mennen-Vermeule,

have agreed as follows:

Property, purpose

	1.1	Lessor leases to Lessee and Lessee leases from Lessor approximately 12.308 m2 office space (the exact floor area will be determined after delivery in accordance with a NEN 2580 measurement certificate) of the office building located at Koningsweg 101-1-3 in 's-Hertogenbosch, as well as 154 parking spaces, of which 118 reserved parking spaces located in the underground garage space, and 36 parking spaces located in the enclosed parking lot behind the building, recorded in the Land Register as Municipality of 's-Hertogenbosch, Section I, Number 2038, referred to as "the Leased Space," which office space is further specified on the drawing initialed by the parties attached to this agreement and being part thereof, and a Certificate of Practical Completion ("proces-verbaal van oplevering") initialed by the parties, which shows which installations and other facilities are, and which installations and other facilities are not, part of the Leased Space and which also includes a description of the condition of the Leased Space, if possible supplemented with photographs initialed by the parties.

	1.2	The Leased Space may be used exclusively by or on behalf of Lessee as office space in the broadest sense, archive space and parking spaces.

 

Initials Lessee :

Initials Lessor :

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	1.3	Lessee is not allowed to assign any purpose to the Leased Space other than described under 1.2 without the prior written consent of Lessor.

	1.4	The maximum permissible load on the floors of the Leased Space is 250kg/m2.

Conditions

	2.1	The 'GENERAL CONDITIONS FOR THE LEASING OF OFFICE SPACE' and other business premises subject to Article 230a of Book 7 of the Dutch Civil Code,' filed with the Clerk of the District Court of The Hague on July 11, 2003 and registered under number 72/2003, hereinafter referred to as the "General Conditions," are part of this Agreement. These General Conditions are fully known to the parties. Lessor and Lessee have received a copy of the General Conditions.

	2.2	The General Conditions referred to in 2.1 are applicable except where this Agreement expressly stipulates otherwise or where applicability in relation to the Leased Space is not possible.

Duration, extension and termination

	3.1	This Lease Agreement is entered into for term of 15 years, beginning January 1, 2014 and ending on December 31, 2028.

	3.2	After expiration of the term referred to in 3.1 this Agreement will be continued for a further period of 5 years, therefore through December 31, 2033. The Agreement will subsequently be continued for a further period of 5 years, therefore through December 31, 2038.

	3.3	Termination of this Agreement takes place by giving notice by Lessee or Lessor, with due observance of a notice period of at least one year. Only the Lessee is entitled to terminate the Lease Agreement after 15 years (December 31, 2028) and 20 years (December 31, 2033). Thereafter, both parties entitled to terminate the Lease Agreement at the end of each lease period.

	3.4	Termination shall take place by means of a bailiff's writ or by registered letter.

 

Initials Lessee :

Initials Lessor :

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Rent, VAT, rent adjustment, payment obligations, period of payment

	4.1	The initial rent of the Leased Space is   (in words:  ).

	4.2	Parties agree that Lessor   charge VAT on the rent.

If it is agreed upon that VAT will not be charged on the rent, Lessee is due a separate compensation to Lessor in addition to the rent, to compensate Lessor respectively its successor(s) for damages resulting from the fact that VAT on Lessor's investments and operation costs of the Leased Space are not or no longer tax deductible. The provisions of Article 19.1 through 19.9 of the General Conditions do not apply in such case.

	4.3	If parties agreed that VAT will be charged on the rent Lessor and Lessee will use the option based on Communication 45, Decree of March 24, 1999, number VB 99/571 to waive a joint request for a VAT taxable lease. By signing this Lease Agreement Lessee declares, also for the benefit of Lessor's successor(s), that he uses and will continue to use, or will others make use and continue to use, the Leased Space for purposes for which the right of deduction of VAT under Article 15 of the Turnover Tax Act 1968 entirely or practically entirely subject exists.

	4.4	Lessee's fiscal year runs from January 1st through December 31st.

	4.5	The rent will be adjusted      .

	4.6	The payment for additional supplies and services to be provided by or on behalf of Lessor will be determined in accordance with Article 16 of the General Conditions. A system of advances is applied to this system, with later settlement as specified there.

	4.7.1	Lessee's payment obligations consist of:

		·	the rent;

		·	VAT due on the rent in case parties have agreed upon a VAT taxable lease;

		·	the advance payment for additional supplies and services provided for or on behalf of the Lessor and the VAT thereon.

 

 

Initials Lessee :

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	4.7.2	If the parties agreed on a VAT taxable lease and the Leased Space may no longer be leased subject to VAT Lessee is no longer required to pay VAT on the rent. In such case the amounts of compensation referred to in 19.3.a of the General Conditions apply and will replace the VAT and the compensation pursuant to 19.3.a sub I is assessed beforehand by parties at 25% of the actual annual rent.

	4.8	Per payment period of 3 calendar month(s) the following applies at commencement of the lease:

	 	
-

	 	
the rent

	 	
 

	 	 
	 	
-

	 	
the VAT due over the rent

	 	
 

	 	 
	 	
-

	 	
the advance for the compensation for additional services rendered for or on behalf of the Lessee, with VAT due over these services

	 	
 

	 	 
	 	 	 	  	 	
 

	 
	
Total

	 	 	 	
 

	 	 

In words: (  )

	4.9	In view of the effective date of the lease, the first payment term applies to the period from January 1, 2014 through March 31, 2014, and the amount due for this first period is  . This amount is inclusive of VAT, however only if Lessor is due VAT on the rent. Lessee will pay this amount before or on January 1, 2014.

	4.10	The periodic payments to be made by Lessee to Lessor under this Lease Agreement as specified in 4.8 are due as an advance payment in one sum in Euros and shall be been made in full before or on the first day of the period to which the payments apply.

	4.11	Unless stated otherwise, all amounts in this Lease Agreement and the General Conditions forming a part thereof are exclusive of VAT.

Supplies and services

	5.	With regard to additional supplies and services parties agree that Lessee and Lessor will mutually consult which additional supplies and services will be provided by Lessor and at what cost.

Bank guarantee/deposit

	6.	Parties establish the amount of the bank guarantee referred to in 12.1 of the General Conditions at    .

In words: (  )

Parties agree that, in deviation of Article 12.1 of the General Conditions, Lessee shall only provide the bank guarantee referred to here above at the moment this is requested by Lessor.

 

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Property management

	7.1	Until Lessor informs otherwise, the management of the property will be carried out by Lessee.

	7.2	Unless agreed in writing otherwise, Lessee will consult the management on the contents and any other matter relating to this Lease Agreement.

Special conditions

	8.1	Delivery of the Leased Space at commencement of lease period:

The Leased Space will be delivered to Lessee by Lessor in fully renovated condition in accordance with the following documents:

		·	Mansveld Projecten & Services B.V.: building contract Lot 4 - electrotechnical equipment, dated July 3, 2012.

		·	Oskomera Projecten B.V.: building contract Lot 2 - complete exterior façade, dated July 5, 2012.

		·	Engineering firm Wolters & Dros B.V.: building contract Lot 3 - mechanical systems, dated July 3, 2012.

		·	Building cooperative Hurks-Moonen V.O.F.: building contract Lot 1 - mechanical activities, dated July 5, 2012.

	8.2	Installation work:

Lessee has the right to install lessee refurbishments, upon written consent of Lessor. Lessor shall not withhold such consent on unreasonable grounds.

Lessee has the right to install such refurbishments before the commencement date of the Lease Agreement, without additional rent payment to Lessor. In such event only service costs are due.

	8.3	Right to sublease and restitution:

Lessee has the right to amend the ascription of the lessee in the Leased Space in the event of a name change of Lessee.

Lessee has the right to sublet the Leased Space or to allow use by related companies without consent of Lessor, whether as a whole or in part. Lessee shall inform Lessor in writing of such event.

Lessee has the right to sublet the Leased Space, as a whole or in part, to third parties upon written consent of Lessor. Lessor shall not withhold or delay such consent on unreasonable grounds.

 

 

Initials Lessee :

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	8.4	Right of subrogation:

Lessee has the right to appoint another lessee to take his place under this Lease Agreement. No approval of Lessor is necessary for the subrogation to related companies. Written approval of Lessor is required for subrogation to third parties. Such approval shall not be withheld on unreasonable grounds.

The successive tenant shall comply with all reasonable requirements of solvability, business moral, and expected use, such at the discretion of Lessor. The successive tenant shall accept any obligations, terms and conditions resulting from this Agreement. Lessor shall not withhold or delay its consent to this paragraph on unreasonable grounds. Moreover, no additional payment will be required from Lessee other than those obligations that result from the Lease Agreement.

	8.5	Delivery at end of Lease Agreement:

Lessee has the right to return the Leased Space to Lessor at the end of the lease period in its actual condition on that moment. This means that Lessee may leave the refurbishments it installed (e.g. partition walls, flooring, data cables, etc.) behind.

	8.6	Rent adjustment:

 In addition to the rent adjustment by Lessor on the basis of indexing, both Lessee and Lessor have the right to demand rent adjustment according to the market value of the Lease Space, first on January 1, 2029 and subsequently each time after expiry of a lease period of 5 years. To determine the market rent the then applicable rent-free periods, contributions to any refurbishment and other financial incentives will also be considered. In case they want to exercise this right, Lessor and Lessee shall inform the other party of this intent by registered letter with receipt confirmation, latest 18 months before the effective date of the rent adjustment.

In the event parties do not reach an agreement within four weeks after receipt of the writing described here above, the market rent will be determined by a committee of three experts. Both Lessor and Lessee shall, within 14 days after a dispute has arisen, each appoint an expert, who will appoint a third expert within 6 days after the date of their appointment. Within 6 days after the date of the assignment the experts shall notify whether they will accept the assignment. In the event one of the parties fails to timely appoint his expert within fourteen days, or if both experts are not able to reach an agreement within six days about the choice of the third expert, the party that took first action may request the District Court (Arrondissementsrechtbank) in Amsterdam to appoint the absent expert(s).

No later than 4 weeks after the appointment of the third expert this committee will establish the market value in a binding decision. If no agreement on the rent value is reached the opinion of the third expert is decisive. Each party will bear the costs of its own expert. The costs of the third expert will be borne equally by both parties. The rent may be adjusted either upward or downward.

 

 

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	8.7	Access:

The leased space is accessible to Lessee 24 hours per day, 7 days per week.

	8.8	Security:

		 Lessee has the right to install its own security system in the Leased Space, including card access systems and a video surveillance system, as long as the privacy of the other tenants is respected.

	8.9	Advertising and name display:

Lessee has the exclusive right to install a name display to the façade and / or on the building, without additional rent due. The installation shall only take place after any required government approvals / permits have been obtained and after written consent of Lessor (who shall not withhold his consent on unreasonable grounds). All costs involved with the name display, including permits, installation, maintenance and removal, are borne by Lessee.

Lessee also has the right to install advertisement displays at paces designated for that purpose in the building.

	8.10	Roof rights:

Lessee has the right to install antennas, satellite receives and such on the roof, without additional rent due. The installation shall only take place after any required government approvals / permits have been obtained and after written consent of Lessor. Lessor shall not withhold his consent on unreasonable grounds. All costs involved with the name display, including permits, installation, maintenance and removal, are borne by Lessee.

	8.11	Electricity meters:

 Lessor shall arrange the placement of an electricity meter in the Leased Space for the use of electricity in the Leased Space.

	8.12	UPS / Generator:

Lessee has the right to install a stand-by generator to support the UPS room in the Leased Space. For both the UPS and the generator applies that this should take place on locations where this is technically and structurally possible, and after written consent of Lessee, who shall not withhold or delay such consent on unreasonable grounds.

	8.13	Termination earlier lease agreement:

By signing this Lease Agreement parties agree that the lease agreement concluded between Lessor and Lessee (in any event its predecessor in title) on November 1, 2010 expires.

 

 

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	8.14	Changes to General Conditions:

Parties agree that the following amendments apply to the General Conditions:

		-	Notwithstanding the provisions of Article 6.1 of the General Conditions, Lessee is not required to effectively, fully, properly, personally and exclusively use the Leased Space and therefore equip the Leased Space with adequate furnishings and fittings.

		-	In addition to the provisions of Article 6.11.6, final sentence, of the General Conditions, parties agree that such will not take place other than upon consultation with the Lessee.

		-	The provisions of Article 7 of the General Conditions do not apply before Lessor has given a reasonable term to still meet his obligations.

		-	The basis year "2000=100" referred to in Article 9.1 of the General Conditions for the price index is changed in to "2006=100."

		-	The provisions of Article 11.5 and Article 11.6 of the General Conditions are not applicable. Instead, the default provisions of Article 7:204 Civil Code apply.

		-	In addition to the provisions of Article 14.1 of the General Conditions parties agree that such will not take place before consultation with Lessee.

		-	The provisions of Article 14.2, Article 14.4 and Article 14.5 of the General Conditions are not applicable. Except with explicit consent of Lessee, Lessor does not have the right to perform renovation activities during the lease period. Lessee has the right to impose conditions to his consent.

		-	The following will be added to Article 16.9 of the General Conditions: "after consultation with Lessee and after his approval."

		-	The provisions of Article 17 of the General Conditions apply to both Lessor and Lessee.

		-	The provisions of Article 18.2 of the General Conditions apply not earlier than after Lessor has properly given Lessee notice of the default and given a reasonable term to still meet his obligations.

		-	The provisions of Articles 22.1, final sentence, 222 and 22.3 of the General Conditions are not applicable.

 

 

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Agreed and signed in threefold,

 

	
Place: 's-Hertogenboschdate 10/09/12

	
 

	
Place: 's-Hertogenboschdate 10/09/12

 

 

	
C.V. Kingsroad

 

/s/ A.L.G. van Tuel

 

Mr. A.L.G. van Tuel

	 	
Brand Loyalty International B.V.

 

/s/ C.M.P. Mennen-Vermeule

 

Mrs. C.M.P. Mennen-Vermeule

Appendices

- General Conditions

- Mansveld Projecten & Services B.V.: building contract Lot 4 - electrotechnical equipment, dated July 3, 2012.

- Oskomera Projecten B.V.: building contract Lot 2 - complete exterior façade, dated July 5, 2012.

- Engineering firm Wolters & Dros B.V.: building contract Lot 3 - mechanical systems, dated July 3, 2012.

- Building cooperative Hurks-Moonen V.O.F.: building contract Lot 1 - mechanical activities, dated July 5, 2012.

- Certificate of Practical Completion ("proces-verbaal van oplevering"),

- Bank guarantee

Separate signature(s) of Lessee(s) for receipt of a copy of the 'GENERAL CONDITIONS LEASE AGREEMENT OFFICE SPACE' and other commercial premises subject to Article 7:230a Dutch Civil Code, as referred to in 2.1.

/s/ C.M.P. Mennen-Vermeule

Mrs. C.M.P. Mennen-Vermeule

 

 

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ADDENDUM LEASE KONINGSWEG 101-103

The undersigned:

	1.	The limited partnership C.V. Kingsroad, having its business address at 5215 MV 's-Hertogenbosch, Het Zuiderkruis 1, hereinafter referred to as: the 'Lessor', duly represented by its legal representative its general partner the private company with limited liability Kingsroad 88 B.V., with its registered office in 's-Hertogenbosch and its business address at 5215 MV 's-Hertogenbosch, Het Zuiderkruis 1, the latter by its legal representative Mr A.L.G. van Tuel;

	2.	The private company with limited liability Brand Loyalty International B.V., with its registered office in 's-Hertogenbosch and having its business address at 5215 MV 's-Hertogenbosch, Het Zuiderkruis 1, hereinafter referred to as: the 'Lessee', duly represented by its legal representative Ms C.M.P. Mennen-Vermeule;

The undersigned stated under (1) and (2) in the following each referred to as 'Party' and together as 'Parties';

TAKE INTO CONSIDERATION:

	A.	The Lessor leases to the Lessee and the Lessee leases form the Lessor circa 12,308 m2 office space in the office building with address at Koningsweg 101-103 's-Hertogenbosch, together with 154 parking places, whereof 118 designated parking places in the parking garage situated under the office building and 36 parking places on the fenced car park situated behind the office building, recorded in the land register as Muncipality of 's-Hertogenbosch, Section I, no. 2308, hereinafter: the 'Leased Space', all as described and agreed upon in the written Office Lease ("Huurovereenkomst Kantoorruimte") dated 9 oktober 2012 drawn up and signed by the Parties (including the  applicable general conditions ("Algemene Bepalingen Huurovereenkomst Kantoorruimte") and other schedules to the Lease), known sufficiently to the Parties without further description, hereinafter referred to as: the 'Lease';

	B.	Parties have made in addition to – respectively derogated from - the Lease further arrangements which they wish to record in writing in this Addendum.

THE PARTIES MUTUALLY COVENANT WITH EACH OTHER AS FOLLOWS:

		1.	Contrary to the provisions of the Lease, the installations and improvements listed in the Schedule to this Addendum worth   are installed not for the account of the Lessee, but for the account of the Lessor, and therefore become property of the Lessor and will in that capacity form part of the Leased Space.

		2.	In relation to the provision stated under 1 of this Addendum, contrary to the provisions of Clause 4.1 of the Lease, the initial annual rent of the Leased Space shall be  excluding VAT. The payment obligations of the Lessee arising from Clauses 4.8 and 4.9 of the Lease will be adjusted accordingly and no bank guarantee will be provided.

		3.	The Schedule forms an integral part of the Addendum.

		4.	In so far as this Addendum does not depart from the provisions of the Lease, these provisions remain in full force. In the event of contradictions between provisions of the Lease and provisions of the Addendum to the Lease, the provisions laid down in this Addendum will prevail.

Drawn up and signed in triplicate in 's-Hertogenbosch on 23 December 2013,

	
on behalf of  C.V. Kingsroad

 

/s/ A.L.G. van Tuel

 

A.L.G. van Tuel

	 	
Brand Loyalty International B.V.

 

/s/ C.M.P. Mennen-Vermeule

 

C.M.P. Mennen-Vermeule

 

Schedule: specification of additional installations and improvements to be installed by the Lessor

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Initials Lessor :

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