Document:

EX-10.5

 

Exhibit 10.5

FIRST AMENDMENT TO INDUSTRIAL SPACE LEASE

     THIS FIRST AMENDMENT TO INDUSTRIAL SPACE LEASE (this “First Amendment”) is dated as of
November 30, 2006, by and between 4300 Venture 6729 LLC, a Delaware limited liability company
(“Landlord”) and DSW Inc., an Ohio corporation (“Tenant”).

RECITALS:

     A. By that certain Lease Agreement dated as of March 22, 2000 (the “Original Lease”) as
amended by that certain Modification Letter dated June 1, 2001 (the “Modification Letter”)
(collectively hereinafter referred to as the “Lease”), between 4300 East Fifth Avenue LLC, an Ohio
limited liability company (“4300 East Fifth Avenue”) and Shonac Corporation, an Ohio corporation
(“Shonac”), 4300 East Fifth Avenue leased to Shonac and Shonac leased from 4300 East Fifth Avenue
that certain space consisting of approximately 707,092 square feet of area in Building No. 6 (the
“Premises”) of the Columbus International Aircenter, which Premises are commonly known as 4150 East
Fifth Avenue, Columbus, Ohio 43219.

     B. Shonac changed its name to DSW Inc., an Ohio corporation.

     C. 4300 East Fifth Avenue assigned all of its rights, title and interest in and to the Lease
to 4300 Venture 6729 LLC, a Delaware limited liability company.

     D. Landlord and Tenant desire to extend the term of the Lease and to amend the Lease in
certain other particulars, as more specifically set forth herein.

     E. The Lease and this First Amendment are hereinafter collectively referred to as the “Lease”.
Unless otherwise provided herein, all capitalized words and terms in this First Amendment shall
have the same meanings ascribed to such words and terms as in the Lease.

     NOW THEREFORE, for and in consideration of the mutual covenants and agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Landlord and Tenant hereby agree as follows:

     1. Term. Pursuant to Section 1.2 of the Original Lease, Tenant hereby elects to
exercise the First Option Term of the Lease upon the same terms, covenants and agreement as are set
forth in the Lease including, without limitation the Annual Rent set forth in Section 1.5(b)(ii) of
the Lease and second paragraph of the Modification Letter, so as to extend its current term until
December 31, 2021. In consideration of the foregoing, Landlord grants to Tenant the right to
exercise a Fourth Option Term (Lease Years 31-35) upon the same terms, covenants and agreement as
are set forth in the Lease, except that the Annual Rent for such Fourth Option Term shall be as
follows:

          Annual Rent: $3,181,914.00 Monthly Installments: $265,159.50
($4.50/s.f.)

     2. Trailer Parking.

     Upon execution of this First Amendment and until such time permanent trailer parking spaces
are available to Tenant, Landlord shall cooperate in good faith with Tenant to secure temporary
trailer parking spaces for Tenant’s use, which may include other property leased by Landlord or its
affiliates. Any and all costs associated with Landlord’s cooperation or Tenant’s use of any such
temporary trailer parking spaces shall be at Tenant’s expense.

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     Landlord and Tenant agree that Section 21.17 of the Original Lease shall be amended by
deleting the second, third and fourth sentences of the second paragraph which relate to Tenant’s
right to use the parking lot located across Fifth Avenue.

     3. Parking Renovation and Signage.

     Tenant is constructing extensive improvements to property immediately adjacent to the Premises
that is owned by an affiliate of Landlord. As a part of Tenant’s construction, Tenant shall have
the right to renovate and improve the portion of the Premises comprising the parking area located
to the immediate west of the Premises, subject to Landlord’s reasonable approval of Tenant’s plans
and specifications for such work. Tenant’s renovations and improvements may include work to the
parking areas, landscaping and the construction and placement of a monument sign. All such
improvements shall be at Tenant’s sole cost and expense. Landlord shall reasonably cooperate with
Tenant in Tenant’s efforts and in obtaining any approvals or consents desired by Tenant; provided
however, all cooperation shall be at Tenant’s cost.

     4. Expansion Area. Landlord and Tenant agree that Section 21.24 of the Original Lease
shall be deleted in its entirety.

     5. This First Amendment contains the entire agreement between the parties with respect to the
subject matter herein contained and all preliminary negotiations with respect to the subject matter
herein contained are merged into and incorporated in this First Amendment and all prior documents
and correspondence between the parties with respect to the subject matter herein contained are
superseded and of no force or effect, other than the Lease.

     6. Except as specifically set forth in this First Amendment, all provisions of the Lease shall
remain in full force and effect and are not modified by this First Amendment, and the parties
hereby ratify and confirm each and every provision thereof.

     7. This First Amendment may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

(Signatures on following page)

2EX-10.6

 

Exhibit 10.6

TRANSFER AND ASSIGNMENT AGREEMENT

          TRANSFER AND ASSIGNMENT AGREEMENT (this “Agreement”), dated as of October 29, 2006, by and
among Brand Technology Services LLC, an Ohio limited liability company (“Buyer”) and wholly owned
subsidiary of DSW Inc. (“DSW”), and Retail Ventures, Inc., an Ohio corporation (“RVI”), Retail
Ventures Services, Inc., an Ohio corporation (“RVSI”) and wholly owned subsidiary of Retail
Ventures Inc., Filene’s Basement, Inc., a Delaware corporation (“FB”) and wholly owned subsidiary
of RVI, and Value City Department Stores LLC, an Ohio limited liability company (“VC”) and a wholly
owned subsidiary of RVI (RVI, RVSI, FB, and VC, collectively, “Seller” or “RVI Entities”).

          WHEREAS, Sellers currently provide certain services on behalf of or for DSW and its
subsidiaries, including information technology services, pursuant to a Shared Services Agreement
entered into effective as of January 30, 2005, by and between DSW and RVI (the “Shared Services
Agreement”);

          WHEREAS, Sellers desire to transfer certain information technology agreements to Buyer and
Buyer desires to assume such information technology contracts;

          WHEREAS, Sellers desire to employ certain employees of Sellers currently engaged in providing
information technology services;

          WHEREAS, following the consummation of the transactions contemplated by this Agreement, Buyer
desires to provide certain information technology services on behalf of or for RVI and its
subsidiaries;

          WHEREAS, the RVI Entities have the expectation that Buyer will make investments into
information technology services and to more efficiently operate such assets, such that the RVI
Entities and Buyer will receive enhanced information technology services; and

          WHEREAS, capitalized terms used herein without definition have the respective meanings
assigned thereto in Section 22;

          NOW, THEREFORE, Buyer, Seller and RVI agree as follows:

1. ASSIGNMENT OF CONTRACTS; ASSUMPTION OF LIABILITIES

     1.1. Assignment of Contracts; Assumption of Liabilities

          As of the Effective Date, Buyer shall assume only the liabilities and obligations of Seller
set forth below:

     (a) The debts, liabilities and obligations of Seller to be performed after the Effective Date
under the contracts, agreements, arrangements and understandings set forth and

 

 

described on
Schedule 2 or entered into after the date hereof (other than in each case debts,
liabilities and obligations on account of breaches or violations by Seller that occurred on or
prior to the Effective Date).

          (b) The executive employment agreements listed on Schedule 1.1(b), including the debts,
liabilities and obligations of Seller to be performed after the Effective Date under such executive
employment agreements.

          (c) The debts, liabilities and obligations incurred after the Effective Date by Buyer with
respect to the New Buyer IT Employees.

          Except as specified in this Section 1, Buyer shall not assume or be deemed to assume any
debts, liabilities or obligations of Seller, including, without limitation, any debts, liabilities
or obligations of Seller for acts or omissions of Seller on or before the Effective Date with
respect to the Information Technology Assets or the New Buyer IT Employees.

     1.2. Restricted Contracts

          The parties understand and agree that, without limiting any representation, warranty,
condition, covenant or indemnification contained in this Agreement, if, as of the Closing, Seller
shall not have effectively obtained any or all consents of any third party(ies) to the assignment
of the contracts, agreements, arrangements and understandings set forth and described on
Schedule 2 or entered into after the date hereof as provided in the definition of
Information Technology Assets (each a “Restricted Contract”) contemplated to be assigned to Buyer
hereunder, in respect of which such third party’s consent to assign is required in order to
preserve the value of such Restricted Contract for Seller or otherwise, then (a) the assignment by
Seller and the assumption by Buyer of such Restricted Contract shall not become effective at
Closing or thereafter until Seller shall have obtained the requisite consent to assign (which
Seller shall use commercially reasonable efforts to obtain, together with the cooperation of
Buyer), (b) such assignment and assumption shall become effective as aforesaid subsequent to
Closing pursuant to such documentation as shall be reasonably acceptable to Buyer and Seller, and
(c) Seller shall not take nor permit any action which would impair the full force and effect of
such Restricted Contract, or otherwise cause or permit the modification, amendment, or termination
of such Restricted Contract (except insofar as consented to by Buyer, which consent shall not be
unreasonably withheld or delayed) until the effective assignment thereof as aforesaid. The parties
understand and agree that Seller, subsequent to the Closing, shall not be entitled to any of the
rights and privileges under any Restricted Contract, all of which shall accrue to the benefit of
Buyer, and Seller shall be deemed to hold such Restricted Contract in trust for Buyer. To the
extent that Buyer is able to receive the economic rights and privileges under any Restricted
Contract, Buyer shall be responsible for the liabilities assumed by Buyer pursuant to Section 1.3
arising under such Restricted Contract.

2. REPRESENTATIONS AND WARRANTIES BY RVI ENTITIES

          Sellers, jointly and severally, represent and warrant to Buyer as follows:

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     2.1. Organization and Standing

          (a) RVSI is a corporation duly organized, validly existing and in good standing under the laws
of the State of Ohio. RVSI has all the requisite corporate power and authority to enter into and
perform the terms of this Agreement, the other Seller Documents to which it is a party and the
transactions contemplated hereby and thereby.

          (b) RVI is a corporation duly organized, validly existing and in good standing under the laws
of the State of Ohio. RVI has all the requisite corporate power and authority to enter into and
perform the terms of this Agreement, the other Seller Documents to which it is a party and the
transactions contemplated hereby and thereby.

          (c) FB is a corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware. FB has all the requisite corporate power and authority to enter into and
perform the terms of this Agreement, the other Seller Documents to which it is a party and the
transactions contemplated hereby and thereby.

          (d) VC is an Ohio limited liability company duly organized and in good standing under the laws
of the State of Ohio. VC has all the requisite limited liability company power and authority to
enter into and perform the terms of this Agreement, the other Seller Documents to which it is a
party and the transactions contemplated hereby and thereby.

     2.2. Authorization

          (a) The execution, delivery and performance of this Agreement and of the other Seller
Documents to which it is a party, and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary actions of Seller (none of which
actions has been modified or rescinded and all of which actions are in full force and effect).
This Agreement constitutes, and upon execution and delivery of each other Seller Document to which
it is a party will constitute, a valid and binding agreement and obligation of Seller, enforceable
in accordance with their respective terms. Except as specified in Section 2.3, the execution,
delivery and performance by Seller of this Agreement and of the other Seller Documents to which it
is a party will not require the consent, approval or authorization of any person, entity or
governmental authority.

          (b) The execution, delivery and performance of this Agreement and of the other Seller
Documents to which it is a party, and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary actions of RVI (none of which
actions has been modified or rescinded and all of which actions are in full force and effect).
This Agreement constitutes, and upon execution and delivery of each other Seller Document to which
it is a party will constitute, a valid and binding agreement and obligation of RVI, enforceable in
accordance with their respective terms. Except as specified in
Section 2.3, the execution, delivery and performance by RVI of this Agreement and of the other
Seller Documents to which it is a party will not require the consent, approval or authorization of
any person, entity or governmental authority.

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     2.3. Conflicts and Consents

     Except as set forth on Schedule 2.3, the execution and delivery of this Agreement and
the other Seller Documents to which it is a party, the fulfillment of and the compliance with the
respective terms and provisions of each, and the consummation of the transactions described in
each, do not and will not conflict with or violate any law, ordinance, regulation, order, award,
judgment, injunction or decree applicable to Seller, or conflict with or result in a breach of or
constitute a default under any of the terms, conditions or provisions of Seller’s articles of
incorporation or bylaws, or any contract, agreement, lease, commitment, or understanding to which
Seller is a party or by which Seller is bound.

     2.4 Contracts and Agreements

     Schedule 2 contains a complete list, as of the date hereof, of each contract,
agreement, arrangement and understanding that will be assigned by Sellers to Buyer (collectively,
the “IT Contracts”). With the exception of so-called “shrink-wrap” and electronic on-screen
end-user licenses for mass-market computer software, all of the IT Contracts are fully and validly
executed by Seller and/or its affiliates and have been executed by the other parties thereto, and
all of the IT Contracts are in full force and effect, constitute legal, valid and binding
obligations of the respective parties thereto, and are enforceable in accordance with their
respective terms. Seller has performed in all material respects all of the obligations required to
be performed by it to date under each such IT Contract. No event has occurred which, with or
without notice or the passage of time or both, constitutes or would constitute a material breach or
default by Seller or any other party under any IT Contract or permit any other party to accelerate,
terminate, cancel or modify such IT Contract. There have been no threatened cancellations by any
third person of any IT Contract.

     2.5 Disclosure

     No representation or warranty or other statement made by Seller or RVI in this Agreement, the
Schedules or otherwise in connection with the transactions contemplated by this Agreement contains
any untrue statement or omits to state a material fact necessary to make any of them, in light of
the circumstances in which it was made, not misleading.

3. REPRESENTATIONS AND WARRANTIES BY BUYER

          Buyer represents and warrants to the RVI Entities as follows:

     3.1. Organization and Standing

          Buyer is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Ohio. Buyer has all the requisite limited liability company power
and authority to enter into and perform the terms of this Agreement and the other Buyer Documents
and to carry out the transactions contemplated hereby and thereby.

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     3.2. Authorization

          The execution, delivery and performance of this Agreement and of the other Buyer Documents,
and the consummation of the transactions contemplated hereby and thereby, have been duly and
validly authorized by all necessary actions of Buyer (none of which actions has been modified or
rescinded and all of which actions are in full force and effect). This Agreement constitutes, and
upon execution and delivery each such other Buyer Document will constitute, a valid and binding
agreement and obligation of Buyer, enforceable in accordance with their respective terms. The
execution, delivery and performance by Buyer of this Agreement and the other Buyer Documents will
not require the consent, approval or authorization of any person, entity or governmental authority.

     3.3. Conflicts and Consents

          The execution and delivery of this Agreement and the other Buyer Documents, the fulfillment of
and the compliance with the respective terms and provisions of each, and the consummation of the
transactions described in each, do not and will not conflict with or violate any law, ordinance,
regulation, order, award, judgment, injunction or decree applicable to Buyer, or conflict with or
result in a breach of or constitute a default under any of the terms, conditions or provisions of
Buyer’s organizational documents, or any contract, agreement, lease, commitment, or understanding
to which Buyer is a party or by which Buyer is bound.

4. COVENANTS OF SELLER

Seller covenants and agrees with Buyer that Seller willuse commercially reasonable efforts to
obtain all third party consents required to assign to Buyer the Information Technology Assets set
forth on Schedule 2.3. Buyer shall cooperate with Seller with respect to obtaining all
such third party consents. All costs incurred or relating to the obtaining of all such third party
consents or otherwise arising from the assignment of the contracts, agreements, arrangements and
understandings set forth and described on Schedule 2 or entered into after the date hereof
as contemplated by this Agreement shall be considered an expense and treated as a shared expensed
pursuant to the terms of the Shared Services Agreement.

5. CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE

          The obligations of Buyer to proceed with the Closing are subject to the satisfaction (or
waiver by Buyer) at or prior to the Closing of each of the following conditions:

     5.1. Representations and Covenants

          The representations and warranties of the RVI Entities made in this Agreement or in any other
Seller Document shall have been true and correct in all material respects when made, and shall be
true and correct in all material respects on the Closing Date as though such representations and
warranties were made on and as of the Closing Date; and the RVI Entities shall have performed and
complied in all material respects with all covenants and agreements

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required by this Agreement or
any other Seller Document to be performed or complied with by the RVI Entities prior to the
Closing.

     5.2. Consents

          The parties shall have obtained prior to the Closing all consents necessary to effect valid
assignments to Buyer of all of the Information Technology Assets specified in Schedule 2.3
and all other consents necessary to consummate the transactions contemplated hereby.

     5.3. Delivery by the RVI Entities

          The RVI Entities shall have delivered to Buyer all consents, agreements and instruments
required to be delivered to Buyer pursuant to Section 7.2.

     5.4. Legal Proceedings

          No action or proceeding by or before any governmental authority shall have been instituted or
threatened (and not subsequently dismissed, settled or otherwise terminated) that might restrain,
prohibit or invalidate the transactions contemplated by this Agreement or any other Seller
Document, other than an action or proceeding instituted or threatened by Buyer or DSW.

6. CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE

          The obligations of Seller to proceed with the Closing are subject to the satisfaction (or
waiver by Seller) at or prior to the Closing of each of the following conditions:

     6.1. Representations and Covenants

          The representations and warranties of Buyer made in this Agreement or in any other Buyer
Document shall have been true and correct in all material respects when made, and shall be true and
correct in all material respects on the Closing Date as though such representations and warranties
were made on and as of the Closing Date; and Buyer shall have performed and complied in all
material respects with all covenants and agreements required to be performed or complied with by
Buyer prior to the Closing.

     6.2. Delivery by Buyer

          Buyer shall have delivered to the RVI Entities all agreements and instruments required to be
delivered to the RVI Entities pursuant to Section 7.3.2.

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     6.3. Legal Proceedings

          No action or proceeding by or before any governmental authority shall have been instituted or
threatened (and not subsequently dismissed, settled or otherwise terminated) that might restrain,
prohibit or invalidate the transactions contemplated by this Agreement or any other Buyer Document,
other than an action or proceeding instituted or threatened by Seller or RVI.

7. THE CLOSING

     7.1. Closing

          The Closing hereunder shall be held on the date hereof (the “Closing Date”).

     7.2. Delivery by the RVI Entities

          At or before the Closing, the RVI Entities shall deliver to Buyer:

          7.2.1. Agreements and Instruments

          The following documents, dated as of the Closing Date, in form satisfactory to Buyer:

               (i) the Assumption Agreement; and

               (ii) such other instruments or documents as Buyer may reasonably request in order to effect
and document the transactions contemplated hereby.

          7.2.2. Consents

          Copies of all consents listed on Schedule 2.3.

          7.2.3. Amendment No. 1 to Shared Services Agreement

          Executed Amendment No. 1 to Shared Services Agreement.

          7.2.4. Release of Encumbrances

          Evidence of release of Encumbrances set forth in Schedule 2.4(a) in form and substance
reasonably acceptable to Buyer.

     7.3. Delivery by Buyer

          At or before the Closing, Buyer shall deliver to the RVI Entities:

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          7.3.1. Agreements and Instruments

          The following agreements and instruments:

               (i) Amendment No. 1 to Shared Services Agreement;

               (ii) the Assumption Agreement; and

               (iii) such other instruments or documents as Seller may reasonably request in order to effect
and document the transactions contemplated hereby.

8. SURVIVAL; INDEMNIFICATION

     8.1. Survival of RVI Entities’ Representations

          The representations and warranties made by the RVI Entities in this Agreement or pursuant
hereto shall survive the Closing Date for a period of one (1) year.

     8.2. Indemnification by Seller

          Subject to the conditions and provisions of Section 8.5, Seller agrees to indemnify, defend
and hold harmless Buyer and its affiliates from and against any and all demands, claims,
complaints, actions or causes of action, suits, proceedings, investigations, arbitrations,
assessments, losses, damages, liabilities, costs and expenses, including, but not limited to,
interest, penalties and reasonable attorneys’ fees and disbursements, asserted against, imposed
upon or incurred by Buyer and/or its affiliates, directly or indirectly, by reason of or resulting
from (a) any debt, liability or obligation of or claim against Seller (whether absolute, accrued,
contingent or otherwise and whether a contractual, tax or any other type of liability or obligation
or claim) not expressly assumed by Buyer pursuant to Section 1.3, (b) any misrepresentation or
breach of the representations and warranties of the RVI Entities contained in or made pursuant to
this Agreement or any other Seller Document, or (c) any noncompliance by the RVI Entities with any
covenants, agreements or undertakings of Seller or RVI contained in or made pursuant to this
Agreement or any other Seller Document.

     8.3. Survival of Buyer’s Representations

          The representations and warranties made by Buyer in this Agreement or pursuant hereto shall
survive the Closing Date for a period of one (1) year.

     8.4. Indemnification by Buyer

          Subject to the conditions and provisions of Section 8.5, Buyer agrees to indemnify, defend and
hold harmless Seller and its affiliates from and against any and all demands, claims, complaints,
actions or causes of action, suits, proceedings, investigations, arbitrations, assessments, losses,
damages, liabilities, costs and expenses, including, but not

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limited to, interest, penalties and
reasonable attorneys’ fees and disbursements, asserted against, imposed upon or incurred by Seller
and/or its affiliates, directly or indirectly, by reason of or resulting from (a) any debt,
liability or obligation of or claim against Seller (whether absolute, accrued, contingent or
otherwise and whether a contractual, tax or any other type of liability or obligation or claim)
expressly assumed by Buyer pursuant to Section 1.3, (b) any misrepresentation or breach of the
representations and warranties of Buyer contained in or made pursuant to this Agreement or any
other Buyer Document, or (c) any noncompliance by Buyer with any covenants, agreements or
undertakings of Buyer contained in or made pursuant to this Agreement or any other Buyer Document.

8.5. Conditions of Indemnification

          The obligations and liabilities of Seller and Buyer hereunder with respect to their respective
indemnities pursuant to this Section 8, resulting from any claim or other assertion of liability by
third parties (hereinafter called collectively, “Claims”), shall be subject to the following terms
and conditions:

          (a) The party seeking indemnification (the “Indemnified Party”) must give the other party or
parties, as the case may be (the “Indemnifying Party”), notice of any such Claim promptly after the
Indemnified Party receives notice thereof; provided, however, that failure to give such notice
promptly shall not relieve the Indemnifying Party of its obligations under this Section 8 except to
the extent that the Indemnifying Party is prejudiced thereby.

          (b) The Indemnifying Party shall have the right to undertake, by counsel or other
representatives of its own choosing, the defense of such Claim.

          (c) In the event that the Indemnifying Party shall elect not to undertake such defense, or
within a reasonable time after notice of any such Claim from the Indemnified Party shall fail to
defend, the Indemnified Party (upon further written notice to the Indemnifying Party) shall have
the right to undertake the defense, compromise or settlement of such Claim, by counsel or other
representatives of its own choosing, on behalf of and for the account and risk of the Indemnifying
Party (subject to the right of the Indemnifying Party to assume defense of such Claim at any time
prior to settlement, compromise or final determination thereof).

          (d) Anything in this Section 8.5 to the contrary notwithstanding, if there is a reasonable
probability that a Claim may materially and adversely affect the Indemnified Party other than as a
result of money damages or other money payments, (i) the Indemnified Party shall have the right, at
its own cost and expense, to participate in the defense, compromise or settlement of the Claim,
(ii) the Indemnifying Party shall not, without the Indemnified Party’s written consent, settle or
compromise any Claim or consent to entry of any judgment which does
not include as an unconditional term thereof the giving by the claimant or the plaintiff to
the Indemnified Party of a release from all liability in respect of such Claim, and (iii) in the
event that the Indemnifying Party undertakes defense of any Claim, the Indemnified Party, by
counsel or other representative of its own choosing and at its sole cost and expense, shall have
the right to consult with the Indemnifying Party and its counsel or other representatives
concerning such

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Claim and the Indemnifying Party and the Indemnified Party and their respective
counsel or other representatives shall cooperate with respect to such Claim.

9. ADDITIONAL COVENANTS OF THE PARTIES

     9.1. Mutual Covenants

          9.1.1. Additional Actions and Documents

          Each of the parties hereto agrees that it will, at any time, prior to, at or after the Closing
Date, take or cause to be taken such further actions, and execute, deliver and file or cause to be
executed, delivered and filed such further documents and instruments, and obtain such consents, as
may be necessary or reasonably requested in connection with the consummation of the purchase and
sale contemplated by this Agreement or in order to fully effectuate the purposes, terms and
conditions of this Agreement.

          9.1.2. Public Announcements

          Each of Seller and Buyer agrees that it shall consult with the other before issuing any press
release or making any public announcement with respect to the sale of the Information Technology
Assets and shall not issue any such press release or make any such public announcements (either
before or after the Closing Date) prior to such consultation unless otherwise required by any
applicable laws or stock listing requirements.

     9.2. Covenants of RVI Entities

          9.2.1. Certain Third Party Warranties

          If Seller shall have recourse to a warranty, representation or indemnity or similar
contractual protective provision made by a third party to Seller that relates to the transactions
contemplated by this Agreement, Seller shall use its commercially reasonable efforts from and after
the Closing to provide the benefit of such warranty, representation or indemnity or similar
provision, to Buyer upon Buyer’s request.

     9.3 Guarantees.

          9.3.1 RVI, for itself and its successors in interest and assigns, hereby irrevocably and
unconditionally guarantees the full and faithful performance and observation by Seller under
this Agreement of all representations, warranties, covenants, conditions, indemnities and
agreements set forth in this Agreement provided to be performed and observed by Seller. RVI does
hereby waive notice of acceptance of this guaranty, notice of protest or compliance with the terms
and provisions of this Agreement and notice of non-performance or non-observance hereof. Each
default in payment or performance of any obligations hereunder shall

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give rise to a separate cause
of action under this Section 9 and separate suits may be brought hereunder as each cause of action
arises.

          9.3.2 DSW, for itself and its successors in interest and assigns, hereby irrevocably and
unconditionally guarantees the full and faithful performance and observation by Buyer under this
Agreement of all representations, warranties, covenants, conditions, indemnities and agreements set
forth in this Agreement provided to be performed and observed by Buyer. DSW does hereby waive
notice of acceptance of this guaranty, notice of protest or compliance with the terms and
provisions of this Agreement and notice of non-performance or non-observance hereof. Each default
in payment or performance of any obligations hereunder shall give rise to a separate cause of
action under this Section 9 and separate suits may be brought hereunder as each cause of action
arises.

10. EMPLOYEES AND EMPLOYEE BENEFITS

          10.1.1. Employment of IT Employees

          (a) As of the Effective Date, the employees listed on Schedule 3 (the “New Buyer IT
Employees”) shall become employees of Buyer. Buyer shall be responsible for the payment of all
wages and other remuneration due to New Buyer IT Employees with respect to their services as
employees of Buyer from and after the Effective Date. Nothing in this Agreement establishes any
right in the New Buyer IT Employees to payments of any kind relating to termination of employment.

          (b) Seller shall be responsible for the payment of all wages and other remuneration due to New
Buyer IT Employees with respect to their services as employees of Seller until the Effective Date,
including pro rata bonus payments and all vacation pay earned prior to the Effective Date.

          (c) Seller or, as applicable, the Plans shall be liable for any claims made or incurred by New
Buyer IT Employees and their beneficiaries through the Effective Date under any employee benefit
plans in which the New Buyer IT Employees participate. For purposes of the immediately preceding
sentence, a charge will be deemed incurred, in the case of hospital, medical or dental benefits,
when the services that are the subject of the charge are performed and, in the case of other
benefits (such as disability or life insurance), when an event has occurred or when a condition has
been diagnosed that entitles the employee to the benefit.

          (d) It is the intent of the parties that any equity awards granted (stock options, SARs, etc.)
by the RVI Entities to the New Buyer IT Employees prior to the Effective Date shall
remain outstanding, and New Buyer IT Employees will remain subject to the terms and conditions
of those awards and underlying plans.

          (e) Immediately following the transactions contemplated hereby, all reasonable efforts will be
made to quickly transition payroll records and systems from Sellers to

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Buyer, so
that all applicable payments are made on Buyer’s behalf, with such
transition to be concluded no later than thirty days following the
Effective Date.

          10.1.2. Retirement and Welfare Plans

          Following the Effective Date, to the extent permitted by law and applicable tax qualification
requirements, and subject to any generally applicable break in service or similar rule, and the
approval of any insurance carrier, third party provider or the like with commercially reasonable
efforts of the RVI Entities and Buyer, each New Buyer IT Employee shall continue to participate in
retirement and welfare benefit plans in which he or she was participating prior to the Closing Date
and shall receive service credit for purposes of eligibility to participate and vesting (but not
for benefit accrual purposes) for employment, compensation, and employee benefit plan purposes with
the Seller prior to the Effective Date. Notwithstanding any of the foregoing to the contrary, none
of the provisions contained herein shall operate to duplicate any benefit provided to any New Buyer
IT Employees or the funding of any such benefit. The RVI Entities and Buyer will also cause all
(a) pre-existing conditions and proof of insurability provisions, for all conditions that all New
Buyer IT Employees and their covered dependents have as of the Effective Date, and (b) waiting
periods under each plan that would otherwise be applicable to newly hired employees to be waived in
the case of clause (a) or clause (b) with respect to New Buyer IT Employees to the same extent
waived or satisfied under the RVI Entities’ employee benefit plans; provided that nothing in this
sentence shall limit the ability of the RVI Entities or the Buyer from amending or entering into
new or different employee benefit plans or arrangements provided such plans or arrangements treat
the New Buyer IT Employees in a substantially similar manner as employees of Buyer are treated.

          10.1.3. General Employee Provisions

          (a) Buyer will set its own initial terms and conditions of employment for the New Buyer IT
Employees and others it may hire, including work rules, benefits and salary and wage structure, all
as permitted by law.

          (b) Seller and Buyer shall give any notices required by applicable law and take whatever other
actions with respect to the plans, programs and policies described in this Section 10 as may be
necessary to carry out the arrangements described in this Section 10.

          (c) Seller and Buyer shall provide each other with such plan documents and summary plan
descriptions, employee data or other information as may be reasonably required to carry out the
arrangements described in this Section 10.

(d) Buyer shall not have any responsibility, liability or obligation, whether to New
Buyer IT Employees, former employees, their beneficiaries or to any other person,
with respect to any employee benefit plans, practices, programs or
arrangements (including the establishment, operation or termination thereof and the
notification and provision of COBRA coverage extension) maintained by Seller.

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11. SALES, TRANSFER AND OTHER TAXES

          Buyer and Seller shall pay all sales, transfer or other taxes, if any, arising from the
transactions contemplated by this Agreement, regardless of the person on whom any such taxes are
imposed by law. Such payment will be apportioned based upon the Percent of Sales Billing ratio
existing at the date of Closing.

12. TERMINATION

          The parties may terminate this Agreement by mutual written agreement at any time prior to the
Closing. In addition, either Buyer, on the one hand, or Seller and RVI, on the other hand, may
terminate this Agreement if the Closing shall not have occurred on or before December 31, 2006. In
the event that this Agreement is terminated pursuant to this Section 12, such termination shall be
without any liability or obligation to any party or parties and all further obligations of the
parties hereunder shall terminate.

13. NOTICES

     All notices, demands, requests or other communications which may be or are required to be
given or made by any party to any other party pursuant to this Agreement shall be in writing and
shall be hand delivered, mailed by first-class registered or certified mail, return receipt
requested, postage prepaid, delivered by overnight air courier, or transmitted by telegram, telex
or facsimile transmission addressed as follows:

(i) If to Buyer:

Brand Technology Services LLC

4150 East Fifth Avenue

Columbus, Ohio 43219

Attn: Chief Technology Officer

Telecopier Number: 614/872-1464

with a copy (which shall not constitute notice) to:

DSW Inc.

4150 East Fifth Avenue

Columbus, Ohio 43219

Attn:  General Counsel

Telecopier Number: 614/872-1464

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(ii) If to Seller or RVI:

Retail Ventures, Inc.

3241 Westerville Road

Columbus, Ohio 43224

Attn: Chief Financial Officer

Telecopier Number: 614/473-2721

with a copy (which shall not constitute notice) to:

Retail Ventures, Inc.

3241 Westerville Road

Columbus, Ohio 43224

Attn: General Counsel

Telecopier Number: 614/337-4682

or such other address as the addressee may indicate by written notice to the other party.

          Each notice, demand, request or communication which shall be given or made in the manner
described above shall be deemed sufficiently given or made for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt, the affidavit of
messenger or (with respect to a telex) the answerback being deemed conclusive but not exclusive
evidence of such delivery) or at such time as delivery is refused by the addressee upon
presentation.

14. WAIVER

          No delay or failure on the part of any party hereto in exercising any right, power or
privilege under this Agreement or under any other instrument or document given in connection with
or pursuant to this Agreement shall impair any such right, power or privilege or be construed as a
waiver of any default or any acquiescence therein. No single or partial exercise of any such
right, power or privilege shall preclude the further exercise of such right, power or privilege, or
the exercise of any other right, power or privilege. No waiver shall be valid against any party
hereto unless made in writing and signed by the party against whom enforcement of such waiver is
sought and then only to the extent expressly specified therein.

15. BENEFIT AND ASSIGNMENT

          Except as hereinafter specifically provided in this Section 15, no party hereto shall assign
this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior
written consent of Seller (if the assignor is Buyer) or Buyer (if the assignor is Seller or RVI);
and any purported assignment contrary to the terms hereof shall be null, void and of no force and
effect. In no event shall any assignment by Seller or RVI of its rights and obligations under this
Agreement, whether before or after the Closing, release Seller or RVI from its liabilities
hereunder. Notwithstanding the foregoing, Buyer or any permitted assignee of

- 14 -

 

Buyer may assign this Agreement and any and all rights hereunder, in whole or in part, to any
direct or indirect subsidiary of DSW.

          This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns as permitted hereunder. No person or entity other than the
parties hereto is or shall be entitled to bring any action to enforce any provision of this
Agreement against any of the parties hereto, and the covenants and agreements set forth in this
Agreement shall be solely for the benefit of, and shall be enforceable only by, the parties hereto
or their respective successors and assigns as permitted hereunder.

16. REMEDIES CUMULATIVE

          Except as specifically provided herein, the remedies provided herein shall be cumulative and
shall not preclude the assertion by a party of any other rights or the seeking of any other
remedies against the other parties, or their successors or assigns. Nothing contained herein shall
preclude a party from seeking equitable relief, where appropriate.

17. ENTIRE AGREEMENT; AMENDMENT

          This Agreement, including the Schedules and Exhibits hereto and the other instruments and
documents referred to herein or delivered pursuant hereto, contains the entire agreement among the
parties with respect to the subject matter hereof and supersedes all prior oral or written
agreements, commitments or understandings with respect to such matters. No amendment, modification
or discharge of this Agreement shall be valid or binding unless set forth in writing and duly
executed by the party against whom enforcement of the amendment, modification or discharge is
sought.

18. SEVERABILITY

          If any part of any provision of this Agreement or any other agreement, document or writing
given pursuant to or in connection with this Agreement shall be invalid or unenforceable under
applicable law, such part shall be ineffective to the extent of such invalidity or unenforceability
only, without in any way affecting the remaining parts of such provisions or the remaining
provisions of said agreement.

19. HEADINGS

          The headings of the sections and subsections contained in this Agreement are inserted for
convenience only and do not form a part or affect the meaning, construction or scope thereof.

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20. GOVERNING LAW

          This Agreement, the rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed under and in accordance with the laws of the
State of Ohio, excluding the choice of law rules thereof.

21. DEFINITIONS AND REFERENCES

          As used herein, the following terms shall have the meanings set forth below, unless the
context otherwise requires:

          “Agreement” shall have the meaning set forth in the Preamble.

          “Amendment No. 1 to Shared Services Agreement” means that certain Amendment No. 1 to Shared
Services Agreement, dated as of the Closing Date and executed by DSW and RVI, substantially in the
form attached hereto as Exhibit B.

          “Assumption Agreement” means that certain Assumption Agreement, dated as of the Closing Date
and executed by Buyer and Seller, substantially in the form attached hereto as Exhibit A.

          “Buyer” shall have the meaning set forth in the Preamble.

          “Buyer Documents” shall mean, together, this Agreement and the Assumption Agreement.

          “Claims” shall have the meaning set forth in Section 8.5.

          “Closing” means the closing of the assignment and sale of the IT Contracts contemplated
hereunder.

          “Closing Date” means the time and date on which the Closing takes place, as established by
Section 7.1.

          “DSW” shall have the meaning set forth in the Preamble.

          “Encumbrances” shall mean any mortgages, pledges, liens, claims, security interests,
restrictions, defects in title, easements, taxes, encumbrances or charges.

          “Indemnified Party” and “Indemnifying Party” shall have the respective meanings set forth in
Section 8.5(a).

          “IT Contracts” shall have the meaning set forth in Section 2.5(a).

          “IT Employees” shall mean those employees of RVI and its affiliates set forth on Schedule
3, which Schedule 3 includes the job title, date of hire, current compensation paid or
payable, and the employee benefit plans in which such individuals participate.

- 16 -

 

          “New Buyer IT Employees” shall have the meaning set forth in Section 10.1.1(a).

          “Restricted Contract” shall have the meaning set forth in Section 1.4.

          “RVI” shall have the meaning set forth in the Preamble.

          “RVI Entities” shall have the meaning set forth in the Preamble.

          “Seller” shall have the meaning set forth in the Preamble.

          “Seller Documents” shall mean, collectively, this Agreement and the Assumption Agreement.

          “Shared Services Agreement” shall have the meaning set forth in the Preamble.

          All references to clauses, Sections, Exhibits and Schedules are to Sections of, and Exhibits
and Schedules to, this Agreement. For purposes of this Agreement, DSW and its subsidiaries shall
not be deemed to be “affiliates” of RVI or Seller.

22. SIGNATURE IN COUNTERPARTS

          This Agreement may be executed in separate counterparts, none of which need contain the
signatures of all parties, each of which shall be deemed to be an original, and all of which taken
together constitute one and the same instrument. It shall not be necessary in making proof of this
Agreement to produce or account for more than the number of counterparts containing the respective
signatures of, or on behalf of, all of the parties hereto.

- 17 -

 

          IN WITNESS WHEREOF, each of the parties hereto has executed and delivered this Agreement, or
has caused this Agreement to be duly executed and delivered in its name on its behalf, all as of
the day and year first above written.

	 	 	 	 	 
	BRAND TECHOLOGY
SERVICES, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/Peter Z. Horvath
 

	 	 
	Name: Peter Z. Horvath

Title: President	 	 
	 
	 	 	 	 
	RETAIL VENTURES, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/James A. McGrady
 

	 	 
	Name: James A. McGrady

Title: Chief Financial Officer	 	 
	 
	 	 	 	 
	RETAIL VENTURES SERVICES, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/James A. McGrady
 

	 	 
	Name: James A. McGrady

Title: Chief Financial Officer	 	 
	 
	 	 	 	 
	FILENE’S BASEMENT, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/James A. McGrady
 

	 	 
	Name: James A. McGrady

Title: Chief Financial Officer	 	 
	 
	 	 	 	 
	VALUE CITY DEPARTMENT STORES LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/James A. McGrady
 

	 	 
	Name: James A. McGrady

Title: Chief Financial Officer	 	 
	 
	 	 	 	 
	Agreed Solely for Purposes of Section 9.3.2:

DSW INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/Peter Z. Horvath
 

	 	 
	Name: Peter Z. Horvath

Title: President	 	 

- 18 -

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