Document:

EX-10.27

 

Exhibit 10.27

SHARED SERVICES AGREEMENT

dated as of January 30, 2005

between

DSW INC.

and

RETAIL VENTURES, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 
	 	 	 	 	 	 
	ARTICLE I

	DEFINITIONS

	 
	 	 	 	 	 	 
	SECTION 1.01.
	 	Definitions	 	 	2	 
	SECTION 1.02.
	 	Internal References	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II

	PURCHASE AND SALE OF SERVICES

	 
	 	 	 	 	 	 
	SECTION 2.01.
	 	Purchase and Sale of Retail Venture Services	 	 	5	 
	SECTION 2.02.
	 	Purchase and Sale of DSW Services	 	 	6	 
	SECTION 2.03.
	 	Additional Services	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III

	SERVICE COSTS; OTHER CHARGES

	 
	 	 	 	 	 	 
	SECTION 3.01.
	 	Service Costs Generally	 	 	7	 
	SECTION 3.02.
	 	Customary Billing	 	 	7	 
	SECTION 3.03.
	 	Pass-Through Billing	 	 	7	 
	SECTION 3.04.
	 	Percent of Sales Billing	 	 	8	 
	SECTION 3.05.
	 	Benefit Billing	 	 	8	 
	SECTION 3.06.
	 	Invoicing and Settlement of Costs	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	STANDARD OR PERFORMANCE AND INDEMNIFICATION

	 
	 	 	 	 	 	 
	SECTION 4.01.
	 	General Standard of Service	 	 	9	 
	SECTION 4.02.
	 	Delegation	 	 	9	 
	SECTION 4.03.
	 	Limitation of Liability	 	 	10	 
	SECTION 4.04.
	 	Indemnification Related to Retail Ventures Services	 	 	12	 
	SECTION 4.05.
	 	Indemnification Related to DSW Services	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE V

	TERM AND TERMINATION

	 
	 	 	 	 	 	 
	SECTION 5.01.
	 	Term	 	 	13	 
	SECTION 5.02.
	 	Termination	 	 	13	 
	SECTION 5.03.
	 	Effect of Termination	 	 	14	 

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	ARTICLE VI

	INSURANCE MATTERS

	 
	 	 	 	 	 	 
	SECTION 6.01.
	 	DSW Insurance Coverage During Transition Period	 	 	14	 
	SECTION 6.02.
	 	Cooperation; Payment of Insurance Proceeds to DSW; Agreement not to Release Carriers	 	 	15	 
	SECTION 6.03.
	 	DSW Insurance Coverage After the Insurance Transition Period	 	 	15	 
	SECTION 6.04.
	 	Deductibles and Self-Insured Obligations	 	 	16	 
	SECTION 6.05.
	 	Procedures with Respect to Insured DSW Liabilities	 	 	16	 
	SECTION 6.06.
	 	Insufficient Limits of Liability for Retail Ventures Liabilities and DSW Liabilties	 	 	16	 
	SECTION 6.07.
	 	Cooperation	 	 	17	 
	SECTION 6.08.
	 	No Assignment or Waiver	 	 	17	 
	SECTION 6.09.
	 	No Liability	 	 	17	 
	SECTION 6.10.
	 	Additional or Alternate Insurance	 	 	17	 
	SECTION 6.11.
	 	Forebearance and Prior Insurance Coverage	 	 	17	 
	SECTION 6.12.
	 	Further Agreements	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	ADDITIONAL AGREEMENTS

	 
	 	 	 	 	 	 
	SECTION 7.01.
	 	Annual Budget	 	 	18	 
	SECTION 7.02.
	 	Employment Matters	 	 	18	 
	SECTION 7.03.
	 	Shared Expenses Agreement	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	SECTION 8.01.
	 	Prior Agreements	 	 	19	 
	SECTION 8.02.
	 	Other Agreements	 	 	19	 
	SECTION 8.03.
	 	Future Litigation and Other Proceedings	 	 	19	 
	SECTION 8.04.
	 	No Agency	 	 	19	 
	SECTION 8.05.
	 	Subcontractors	 	 	19	 
	SECTION 8.06.
	 	Force Majeure	 	 	20	 
	SECTION 8.07.
	 	Entire Agreement	 	 	20	 
	SECTION 8.08.
	 	Information	 	 	20	 
	SECTION 8.09.
	 	Notices	 	 	21	 
	SECTION 8.10.
	 	Governing Law	 	 	21	 
	SECTION 8.11.
	 	Severability	 	 	21	 
	SECTION 8.12.
	 	Amendment	 	 	21	 
	SECTION 8.13.
	 	Counterparts	 	 	22	 
	SECTION 8.14.
	 	Authority	 	 	22	 

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SCHEDULES

	 	 	 
	SCHEDULE I:
	 	Services To Be Provided By Retail Ventures, Inc.

	SCHEDULE II:
	 	Services To Be Provided By DSW Inc.

	SCHEDULE III:
	 	Insurance Policies Maintained by Retail Ventures, Inc.

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SHARED SERVICES AGREEMENT

     This Shared Services Agreement is entered into to be effective as of January 30, 2005 by
and between DSW Inc., an Ohio corporation (“DSW”), and Retail Ventures, Inc. an Ohio corporation
(“Retail Ventures”). DSW and Retail Ventures are sometimes being referred to herein separately as
a “Party” and together as the “Parties”. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in Article I hereof.

RECITALS

     WHEREAS, Retail Ventures beneficially owns 100% of the issued and outstanding common shares of
DSW;

     WHEREAS, the Parties currently contemplate that the Articles of Incorporation of DSW will be
amended to authorize ___Class A common shares, without par value (the “Class A common shares”)
and ___Class B common shares, without par value (the “Class B common shares”), and to change
each currently outstanding DSW common share into ___Class B common shares, all of which Class B
common shares will be beneficially-owned by Retail Ventures;

     WHEREAS, the Parties currently contemplate that DSW will make an initial public offering (the
“Offering”) of an amount of Class A common shares pusuant to a registration statement on Form S-1
under the Securities Act of 1933, as amended (the “Registration Statement”);

     WHEREAS, immediately following consummation of the Offering, Retail Ventures will own Class B
common shares evidencing at least 80.1% of the combined voting power of the holders of the Class A
common shares and the Class B common shares with respect to all shareholder matters;

     WHEREAS, Retail Ventures directly or indirectly provides certain administrative, financial,
management and other services to the DSW Entities (as defined below), and DSW directly or
indirectly provides certain administrative, management and other services to the Retail Ventures
Entities (as defined below);

     WHEREAS, following consummation of the Offering, Retail Ventures desires to continue to
provide certain administrative, financial, management and other services to the DSW Entities, and
DSW desires to continue to provide certain administrative, management and other services to the
Retail Ventures Entities, as more fully set forth in this Agreement; and

     WHEREAS, each Party desires to set forth in this Agreement the principal terms and conditions
pursuant to which certain services will be provided by it to, and certain services will be provided
to it by, the other Party;

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     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto,
for themselves and their respective successors and assigns, hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01. Definitions. (a) As used in this Agreement, the following terms shall
have the following meanings, applicable both to the singular and the plural forms of the terms
described:

     “Agreement” means this Shared Services Agreement, together with the schedules and exhibits
hereto, as the same may be amended and supplemented from time to time in accordance with the
provisions hereof.

     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York or Columbus, Ohio are authorized or required by law to close.

     “Contract” means any contract, agreement, lease, license, sales order, purchase order,
instrument or other commitment that is binding on any Person or any part of such Person’s property
under applicable law.

     “Department” means a business section or division of a Party.

     “Distribution Date” means the date on which Retail Ventures is no longer required to
consolidate DSW’s results of operations and financial condition (determined in accordance with
generally accepted accounting principles consistently applied) with Retail Ventures’ results of
operations and financial condition.

     “DSW Business” means the specialty branded footwear retail business engaged in by DSW, as more
completely described in the Registration Statement, and any businesses added under the control of
DSW.

     “DSW Entities” means DSW Inc. and its Subsidiaries, and “DSW Entity” means any one of the DSW
Entities.

     “DSW Liabilities” has the meaning set forth in the Master Separation Agreement.

     “DSW Services” means the various services to be provided by DSW on behalf of the Retail
Ventures Entities as described in this Agreement and/or in Schedule II.

     “Exchange Agreement” means the Exchange Agreement between the parties dated ___.

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     “Insurance Policies” means insurance policies pursuant to which a Person makes a true risk
transfer to an insurer.

     “Insurance Proceeds” means those monies: (a) received by an insured from an insurance carrier;
or (b) paid by an insurance carrier on behalf of the insured; or (c) from Insurance Policies.

     “Insured DSW Liability” means any DSW Liability to the extent that (i) it is covered under the
terms of Retail Ventures’ Insurance Policies in effect prior to the end of the Insurance Transition
Period, and (ii) DSW is not a named insured under, or otherwise entitled to the benefits of, such
Insurance Policies.

     “Liabilities” means all debts, liabilities, guarantees, assurances, commitments and
obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured,
liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due,
whenever or however arising (including, without limitation, whether arising out of any Contract or
tort based on negligence or strict liability) and whether or not the same would be required by
generally accepted principles and accounting policies to be reflected in financial statements or
disclosed in the notes thereto.

     “Master Separation Agreement” means the Master Separation Agreement between the Parties of
even date herewith.

     “Offering Date” means 12:01 a.m., New York City Time, on the date on which the Offering is
consummated.

     “Person” means any individual, partnership, limited liability company, joint venture,
corporation, trust, unincorporated organization, government (including any department or agency
thereof) or other entity.

     “Retail Ventures Entities” means Retail Ventures and its Subsidiaries (other than the DSW
Entities), and “Retail Venture Entity” means any one of the Retail Venture Entities currently in
place on the effective date of the Registration Statement and any businesses added under the
control of Retail Ventures.

     “Retail Ventures Services” means the various services to be provided by Retail Ventures on
behalf of the DSW Entities as described in this Agreement, in Schedule I and/or in Schedule III.

     “RVSI” means Retail Ventures Services, Inc., an Ohio corporation and wholly-owned subsidiary
of Retail Ventures.

     “Schedule I” means the first Schedule attached hereto which lists Services to be provided by
Retail Ventures on behalf of or for DSW Entities and sets forth the related Retail Ventures Service
Costs and/or billing methodology.

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     “Schedule II” means the second Schedule attached hereto which lists Services to be provided by
DSW on behalf of or for Retail Ventures Entities and sets forth the related DSW Service Costs
and/or billing methodology.

     “Schedule III” means the third Schedule attached hereto which lists the Insurance Policies to
be maintained by Retail Ventures on behalf of or for the DSW Entities and premium expenses and/or
the methodology for calculating the premium expenses to be paid by DSW for insurance coverage under
such Insurance Policies.

     “Schedules” means any one or more of the schedules referred to in and attached to this
Agreement.

     “Services” means the DSW Services and/or the Retail Ventures Services, as the context may
require.

     “Subsidiary” means, as to any Person, any corporation, association, partnership, joint venture
or other business entity of which more than 50% of the voting capital stock or other voting
ownership interests is owned or controlled directly or indirectly by such Person or by one or more
of the Subsidiaries of such Person or by a combination thereof.

     “Tax Separation Agreement” means the Tax Separation Agreement attached as Exhibit A to the
Master Separation Agreement.

     (b) Each of the following terms is defined in the Section set forth opposite such term:

	 	 	 
	TERM	 	SECTION
	Annual Budget
	 	7.01 
	Actions
	 	4.04(a) 
	Applicable Insurance
	 	6.11(a) 
	Benefit Billing
	 	3.01 
	Benefits Services
	 	3.05(b) 
	Billing Party
	 	3.02 
	Class A common shares
	 	Preamble
	Class B common shares
	 	Preamble
	Coverage Amount
	 	6.06(a)(i) 
	Customary Billing
	 	3.01 
	DSW Covered Parties
	 	6.01(a) 
	DSW Inc.
	 	Preamble
	DSW Indemnified Person
	 	4.04(b) 
	DSW Service Costs
	 	3.01 
	Employee Welfare Plans
	 	4.02 
	Force Majeure
	 	8.06(a) 
	Initial Term
	 	5.01 
	Insurance Transition Period
	 	6.01(a) 
	Net Sales Ratio
	 	3.04 

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	Offering
	 	Preamble
	Overallocated Party
	 	6.06(a)(iii) 
	Parties
	 	Preamble
	Party
	 	Preamble
	Pass-Through Billing
	 	3.01 
	Payment Date
	 	3.06(b) 
	Percent of Sales Billing
	 	3.01 
	Prior Agreements
	 	8.01 
	Receiving Party
	 	3.02 
	Registration Statement
	 	Preamble
	Retail Ventures
	 	Preamble
	Retail Ventures Indemnified Person
	 	4.03(a) 
	Retail Ventures Insurance Policies
	 	6.01(a) 
	Retail Ventures Plans
	 	3.05(a) 
	Retail Ventures Service Costs
	 	3.01 
	Service Costs
	 	3.06(a) 
	Shared Expenses Agreement
	 	7.03 
	Terminated Party
	 	5.03(a) 
	Terminating Party
	 	5.03(a) 
	Underallocated Party
	 	6.06(a)(iii) 

     SECTION 1.02. Internal References. Unless the context indicates otherwise, references
to Articles, Sections and paragraphs shall refer to the corresponding articles, sections and
paragraphs in this Agreement and references to the parties shall mean the parties to this
Agreement.

ARTICLE II

PURCHASE AND SALE OF SERVICES

     SECTION 2.01. Purchase and Sale of Retail Ventures Services.

     (a) Subject to the terms and conditions of this Agreement and in consideration of the Retail
Ventures Service Costs described below, Retail Ventures agrees to provide to DSW, or to procure the
provision to DSW of, and DSW agrees to purchase from Retail Ventures, the Retail Ventures Services.
Unless otherwise specifically agreed by Retail Ventures and DSW, the Retail Ventures Services
shall be substantially similar in scope, quality, and nature to those customarily provided to, or
procured on behalf of, the DSW Entities by Retail Ventures and/or its Subsidiaries prior to the
Offering Date.

     (b) The Parties acknowledge and agree that (i) the Retail Ventures Services to be provided by
Retail Ventures under this Agreement shall, at DSW ’s request, be provided directly to Subsidiaries
of DSW and (ii) Retail Ventures may satisfy its obligation to provide or to procure the Retail
Ventures Services hereunder by causing one or more of its Subsidiaries,
including, but not limited to, RVSI, to provide or to procure such services. With respect to the
Retail Ventures Services provided to, or procured on behalf of, any Subsidiary of DSW, DSW

5

 

agrees
to pay on behalf of such Subsidiary all amounts payable by or in respect of such services pursuant
to this Agreement.

     Section 2.02. Purchase and Sale of DSW Services

     (a) Subject to the terms and conditions of this Agreement and in consideration of the DSW
Service Costs described below, DSW agrees to provide to Retail Ventures, or to procure the
provision to Retail Ventures of, and Retail Ventures agrees to purchase from DSW, the DSW Services.
Unless otherwise specifically agreed by Retail Ventures and DSW, the
DSW Services shall be substantially similar in scope, quality, and nature to those customarily
provided to, or procured on behalf of, the Retail Ventures Entities by DSW and/or its Subsidiaries
(and/or the Retail Ventures Departments providing the Services which are now a part of DSW) prior
to the Offering Date.

     (b) The Parties acknowledge and agree that (i) the DSW Services to be provided by DSW on
behalf of Retail Ventures under this Agreement shall, at Retail Ventures’ request, be provided
directly to Subsidiaries of Retail Ventures and (ii) DSW may satisfy its obligation to provide or
to procure the DSW Services hereunder by causing one or more of its Subsidiaries to provide or to
procure such services. With respect to the DSW Services provided to, or procured on behalf of, any
Subsidiary of Retail Ventures, Retail Ventures agrees to pay on behalf of such Subsidiary all
amounts payable by or in respect of such services pursuant to this Agreement.

     SECTION 2.03. Additional Services.

     (a) In addition to the Retail Ventures Services to be provided or procured by Retail Ventures
in accordance with Section 2.01, if requested by DSW, and to the extent that Retail Ventures and
DSW may mutually agree, Retail Ventures shall provide additional services (including services not
provided by Retail Ventures to the DSW Entities prior to the Offering Date) to DSW. The scope of
any such services, as well as the costs and other terms and conditions applicable to such services,
shall be as mutually agreed by Retail Ventures and DSW.

     (b) In addition to the DSW Services to be provided or procured by DSW in accordance with
Section 2.02, if requested by Retail Ventures, and to the extent that Retail Ventures and DSW may
mutually agree, DSW shall provide additional services (including services not provided by DSW to
the Retail Ventures Entities prior to the Offering Date) to Retail Ventures. The scope of any such
services, as well as the costs and other terms and conditions applicable to such services, shall be
as mutually agreed by Retail Ventures and DSW.

6

 

ARTICLE III

SERVICE COSTS; OTHER CHARGES

     SECTION 3.01. Service Costs Generally. The Schedules hereto indicate, with respect to
the DSW Services and the Retail Ventures Services, respectively, listed therein, whether the costs
to be charged for Services are to be determined by (i) the customary billing method described in
Section 3.02 (“Customary Billing”), (ii) the pass-through billing method described in Section 3.03
(“Pass-Through Billing”), (iii) the percentage of DSW’s net sales method described in Section 3.04
(“Percent of Sales Billing”), (iv) a calculation of certain costs related to employee benefit plans
and benefit arrangements described in Section 3.05 (“Benefit Billing”), or (v) another specified
method. Unless otherwise indicated on the Schedules, the Customary Billing method will apply. The
costs to be paid by DSW to Retail Ventures for Retail Venture Services are collectively referred to
herein as the “Retail Ventures Service Costs”. DSW agrees to pay to Retail Ventures in the manner
set forth in Section 3.06 an amount equal to the Retail Ventures Service Costs applicable to each
of the Retail Ventures Services provided or procured by Retail Ventures. The costs to be paid by
Retail Ventures to DSW for the DSW Services are collectively referred to herein as the “DSW Service
Costs”. Retail Ventures agrees to pay to DSW in the manner set forth in Section 3.06 an amount
equal to the DSW Service Costs applicable to each of the DSW Services provided or procured by DSW.

     SECTION 3.02. Customary Billing. The costs of Services as to which the Customary
Billing method applies shall be equal to the costs customarily charged and/or allocated by one
Party and/or one or more of its Subsidiaries or Departments (the “Billing Party”) to the other
Party and/or one or more of its Subsidiaries or Departments (the “Receiving Party”) immediately
prior to the Offering Date (it being understood that from and after the Offering Date such costs
may be increased by the Billing Party in a manner consistent with the manner in which such costs
were increased from time to time prior to the Offering Date, and consistent with the semi-annual
reconciliation described in Section 7.01).

     SECTION 3.03. Pass-Through Billing. The costs of Services as to which the
Pass-Through Billing method applies shall be equal to the aggregate amount of third-party,
out-of-pocket costs and expenses incurred by a Billing Party on behalf of a Receiving Party (which
costs shall include but not be limited to the costs incurred in connection with obtaining the
consent of any party to a contract or agreement to which any Billing Party is a party where such
consent is related to and reasonably required for the provision of any Service). It is intended
that Services provided by third parties will be billed directly to the Receiving Party by the third
party; however, if a Billing Party incurs any such costs or expenses on behalf of any
Receiving Party as well as businesses operated by the Billing Party, the Billing Party shall
allocate any such costs or expenses in good faith between the various businesses on behalf of which
such costs or expenses were incurred as set forth on any Schedule hereto or, if not set forth on a
Schedule, then as the Billing Party shall determine in the exercise of the Billing Party’s
reasonable judgment. The Billing Party shall apply usual and accepted accounting conventions in
making such allocations, and the Billing Party or its agents shall keep and maintain such books and
records as may be reasonably necessary to make such
allocations. The Billing Party shall make copies of such books and records available to the
Receiving Party upon request and with reasonable notice.

7

 

     SECTION 3.04. Percent of Sales Billing. Retail Ventures Services for which the billing
methodology is the Percent of Sales Billing method shall not be billed individually. Instead,
Retail Ventures shall provide all such services for an aggregate annual cost equal to the amount
obtained by multiplying (x) Retail Ventures’ projected budget for all services which are the same
or similar to the applicable Retail Ventures Service which are to be provided to all Retail
Ventures Entities and DSW Entities for the relevant year, by (y) the projected net sales for the
year of the DSW Entities divided by the aggregate projected net sales of all Retail Ventures
Entities and DSW Entities (the “Net Sales Ratio”). At the end of the applicable fiscal year,
actual expenses versus budgeted expenses for the relevant Retail Venture Service shall be compared
and any overage or shortfall shall be allocated based upon the Net Sales Ratio. Retail Ventures’
budget for Retail Venture Services to be provided to DSW as contemplated by this Section 3.04 shall
be determined on a basis consistent with the manner in which Retail Ventures determines the similar
budgets for the Retail Venture Entities.

     SECTION 3.05. Benefit Billing.

     (a) Prior to the Offering Date, certain associates of DSW participated in certain benefit
plans sponsored by Retail Ventures (“Retail Ventures Plans”). On and after the Offering Date, DSW
associates shall continue to be eligible to participate in the Retail Ventures Plans, subject to
the terms of the governing plan documents as interpreted by the appropriate plan fiduciaries. On
and after the Offering Date, subject to regulatory requirements and the provisions of Section 4.01
hereof, Retail Ventures shall continue to provide Benefit Services (as hereafter defined) to and in
respect of DSW associates with reference to Retail Ventures Plans as administered by Retail
Ventures prior to the Offering Date.

     (b) The costs payable by DSW for Retail Ventures Services relating to the administration of
employee plans and benefit arrangements, which are included in Human Resources in Schedule I
(“Benefit Services”), shall be determined and billed as set forth in Schedule I. The Parties
acknowledge and agree that some of the costs associated with certain Retail Ventures Plans will be
paid principally through DSW employee payroll deductions for such plans as specified in Schedule I.
The Parties intend that the Retail Ventures Service Costs relating to the performance of Benefit
Services shall not exceed reasonable compensation for such services as defined under applicable
law.

     (c) Each Party may request changes in the applicable terms of or Retail Ventures Services
relating to the Retail Ventures Plans, approval of which shall not be unreasonably withheld;
provided, however, that changes in the terms and provisions of any of the Retail Ventures
Plans shall be in the sole discretion of Retail Ventures. The Parties agree to cooperate fully
with each other in the administration and coordination of regulatory and administrative
requirements associated with Retail Ventures Plans.

     SECTION 3.06. Invoicing and Settlement of Costs.

     (a) Each Billing Party shall invoice or notify the Chief Executive Officer or Chief Financial
Officer of the Receiving Party on a monthly basis (not later than the tenth day of each

8

 

month), in
a manner substantially similar to and consistent with the billing practices used in connection with
services provided by Retail Ventures to the DSW Entities prior to the Offering Date (except as
otherwise agreed), of the Service Costs related to services performed or procured by the Billing
Party during the prior calendar month. As used herein, “Service Costs” means the Retail Ventures
Service Costs, if Retail Ventures is the Billing Party, and the DSW Service Costs, if DSW is the
Billing Party. In connection with the invoicing described in this Section 3.06(a), the Billing
Party shall provide to the Receiving Party the same billing data and level of detail as customarily
or similar to that provided to the Receiving Party prior to the Offering Date and such other
related data as may be reasonably requested by the Receiving Party.

     (b) The Receiving Party agrees to pay to the Billing Party, on or before the 30th
day after the date on which the Billing Party delivers to the Receiving Party an invoice or notice
of Service Costs (or the next Business Day, if such 30th day is not a Business Day)
(each, a “Payment Date”), by wire transfer of immediately available funds payable to the order of
the Billing Party, all amounts so invoiced or noticed by the Billing Party pursuant to Section
3.06(a). If the Receiving Party fails to pay any monthly payment within 30 days of the relevant
Payment Date, the Receiving Party shall be obligated to pay, in addition to the amount due on such
Payment Date, interest on such amount at the prime, or best, rate announced by National City Bank,
compounded monthly from the relevant Payment Date through the date of payment. Payment can be made
via check, ACH or wire and offsetting is not permitted.

ARTICLE IV

STANDARD OF PERFORMANCE AND INDEMNIFICATION

     SECTION 4.01. General Standard of Service. Except as otherwise agreed to in writing
by the Parties or as described in this Agreement, and provided that a Party is not restricted by
contract with third parties or by applicable law, the Parties agree that the nature, quality, and
standard of care applicable to the delivery of the Services hereunder shall be substantially the
same as or consistent with that applicable to the similar services provided by a Party to the other
Party prior to the Offering Date. Retail Ventures shall use its reasonable efforts to ensure that
the nature and quality of Services provided to DSW associates under Retail Ventures Plans, either
by Retail Ventures directly or through administrators under contract, shall be undifferentiated as
compared with the same services provided to or on behalf of Retail Ventures associates under Retail
Ventures Plans.

     SECTION 4.02. Delegation. Subject to Section 4.01 above, DSW hereby delegates to
Retail Ventures final, binding, and exclusive authority, responsibility, and discretion to
interpret and construe the provisions of employee welfare benefit plans in which associates of DSW
Entities have elected to participate and which
are administered by Retail Ventures under this Agreement (collectively, “Employee Welfare Plans”).
Retail Ventures may further delegate such authority to other parties to:

     (i) provide administrative and other services;

     (ii) reach factually supported conclusions consistent with the terms of the respective
Employee Welfare Plans;

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     (iii) make a full and fair review of each claim denial and decision related to the
provision of benefits provided or arranged for under the Employee Welfare Plans pursuant to
the requirements of ERISA, if within 60 days after receipt of the notice of denial, a
claimant requests in writing a review for reconsideration of such decisions (the party
adjudicating the claim shall notify the claimant in writing of its decision on review and
such notice shall satisfy all ERISA requirements relating thereto); and

     (iv) notify the claimant in writing of its decision on review.

     SECTION
4.03. Limitation of Liability.

     (a) Retail Ventures Entities

     (i) DSW agrees that none of the Retail Ventures Entities and their respective
directors, officers, agents, and employees (each, a “Retail Ventures Indemnified Person”)
shall have any liability, whether direct or indirect, in contract or tort or otherwise, to
any DSW Entity or any other Person for or in connection with the Retail Ventures Services
rendered or to be rendered by any Retail Ventures Indemnified Person pursuant to this
Agreement, the transactions contemplated hereby or any Retail Ventures Indemnified Person’s
actions or inactions in connection with any Retail Ventures Services or such transactions,
except for damages which have resulted from such Retail Ventures Indemnified Person’s gross
negligence or willful misconduct in connection with any Retail Ventures Services, actions or
inactions.

     (ii) Notwithstanding the provisions of this Section 4.03(a), none of the Retail Venture
Entities shall be liable for any special, indirect, incidental, or consequential damages of
any kind whatsoever (including, without limitation, attorneys’ fees) in any way due to,
resulting from or arising in connection with any of the Retail Ventures Services or the
performance of or failure to perform Retail Ventures’ obligations under this Agreement.
This disclaimer applies without limitation (1) to claims arising from the provision of the
Retail Ventures Services or any failure or delay in connection therewith; (2) to claims for
lost profits; (3) regardless of the form of action, whether in contract, tort (including
negligence), strict liability, or otherwise; and (4) regardless of whether such damages are
foreseeable or whether Retail Ventures has been advised of the possibility of such damages.

     (iii) None of the Retail Venture Entities shall have any liability to any DSW Entity or
any other Person for failure to perform Retail Ventures’ obligations under this Agreement or
otherwise, where (1) such failure to perform is not caused by the gross negligence or
willful misconduct of the Retail Venture Entity designated to perform such obligations and
(2) such failure to perform similarly affects the Retail Venture Entities receiving the same
or similar services and does not have a disproportionately adverse effect on the DSW
Entities, taken as a whole.

10

 

     (iv) In addition to the foregoing, DSW agrees that, in all circumstances, it shall use
commercially reasonable efforts to mitigate and otherwise minimize damages to the DSW
Entities, individually and collectively, whether direct or indirect, due to, resulting from
or arising in connection with any failure by Retail Ventures to comply fully with Retail
Ventures’ obligations under this Agreement.

     (b) DSW Entities

     (i) Retail Ventures agrees that none of the DSW Entities and their respective
directors, officers, agents, and employees (each, a “DSW Indemnified Person”) shall have any
liability, whether direct or indirect, in contract or tort or otherwise, to any Retail
Ventures Entity or any other Person for or in connection with the DSW Services rendered or
to be rendered by any DSW Indemnified Person pursuant to this Agreement, the transactions
contemplated hereby or any DSW Indemnified Person’s actions or inactions in connection with
any DSW Services or such transactions, except for damages which have resulted from such DSW
Indemnified Person’s gross negligence or willful misconduct in connection with any DSW
Services, actions or inactions.

     (ii) Notwithstanding the provisions of this Section 4.03(b), none of the DSW Entities
shall be liable for any special, indirect, incidental, or consequential damages of any kind
whatsoever (including, without limitation, attorneys’ fees) in any way due to, resulting
from or arising in connection with any of the DSW Services or the performance of or failure
to perform DSW’s obligations under this Agreement. This disclaimer applies without
limitation (1) to claims arising from the provision of the DSW Services or any failure or
delay in connection therewith; (2) to claims for lost profits; (3) regardless of the form of
action, whether in contract, tort (including negligence), strict liability, or otherwise;
and (4) regardless of whether such damages are foreseeable or whether DSW has been advised
of the possibility of such damages.

     (iii) None of the DSW Entities shall have any liability to any Retail Ventures Entity
or any other Person for failure to perform DSW’s obligations under this Agreement or
otherwise, where (1) such failure to perform is not caused by the gross negligence or
willful misconduct of the DSW Entity designated to perform such obligations and (2) such
failure to perform similarly affects the DSW Entities receiving the same or similar services
and does not have a disproportionately adverse effect on the Retail Ventures Entities, taken
as a whole.

     (iv) In addition to the foregoing, Retail Ventures agrees that, in all circumstances,
it shall use commercially reasonable efforts to mitigate and otherwise minimize damages to
Retail Ventures Entities, individually and collectively, whether direct or indirect, due to,
resulting from or arising in connection with any failure by DSW to comply fully with DSW’s
obligations under this Agreement.

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     SECTION 4.04. Indemnification Related to Retail Ventures Services.

     (a) DSW agrees to indemnify and hold harmless each Retail Ventures Indemnified Person from and
against any damages related to, and to reimburse each Retail Ventures Indemnified Person for all
reasonable expenses (including, without limitation, attorneys’ fees) as they are incurred in
connection with investigating, preparing, pursuing, or defending, any claim, action, proceeding, or
investigation, whether or not in connection with pending or threatened litigation and whether or
not any DSW Indemnified Person or any Retail Ventures Indemnified Person is a party (collectively,
“Actions”), arising out of or in connection with Retail Ventures Services rendered or to be
rendered by any Retail Ventures Indemnified Person pursuant to this Agreement, the transactions
contemplated hereby or any Retail Ventures Indemnified Person’s actions or inactions in connection
with any such Retail Ventures Services or transactions; provided that, DSW shall not be
responsible for any damages incurred by any Retail Ventures Indemnified Person that have resulted
from such Retail Ventures Indemnified Person’s gross negligence or willful misconduct in connection
with any of the advice, actions, inactions, or Retail Ventures Services referred to above (it being
understood and agreed that the provision by any Retail Venture Entity of any of the Retail Ventures
Services contemplated by Schedule I hereof without obtaining the consent of any party to any
Contract or agreement to which any Retail Ventures Entity is a party as of the date hereof shall
not constitute gross negligence or willful misconduct by any Retail Ventures Entity, provided
that, the relevant Retail Ventures Entity has used commercially reasonable efforts to obtain
such consent).

     (b) Except as set forth in Section 4.04(c), Retail Ventures agrees to indemnify and hold
harmless each DSW Indemnified Person from and against any damages related to, and to reimburse each
DSW Indemnified Person for all reasonable expenses as they are incurred in connection with
investigating, preparing, or defending, any Action arising out of or related to the gross
negligence or willful misconduct of any Retail Ventures Indemnified Person in connection with the
Retail Ventures Services rendered or to be rendered pursuant to this Agreement.

     (c) To the extent that any other Person has agreed to indemnify any Retail Ventures
Indemnified Person or to hold a Retail Ventures Indemnified Person harmless and such Person
provides services to Retail Ventures or any affiliate of Retail Ventures relating directly or
indirectly to any employee plan or benefit arrangement for which Benefit Services are provided
under this Agreement, Retail Ventures will exercise reasonable efforts (x) to make such agreement
applicable to any DSW Indemnified Person so that each DSW Indemnified Person is held harmless or
indemnified to the same extend as any Retail Ventures Indemnified Person and (y) to make available
to each DSW Indemnified Person the benefits of such agreement.

     SECTION 4.05. Indemnification Related to DSW Services.

     (a) Retail Ventures agrees to indemnify and hold harmless each DSW Indemnified Person from and
against any damages related to, and to reimburse each DSW Indemnified Person for all reasonable
expenses (including, without limitation, attorneys’ fees) as they are incurred in connection with
investigating, preparing, pursuing, or defending, any Action arising out of or in connection with
DSW Services rendered or to be rendered by any DSW Indemnified Person pursuant to this Agreement,
the transactions contemplated hereby or any DSW Indemnified

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Person’s actions or inactions in
connection with any such DSW Services or transactions; provided that, Retail Ventures shall
not be responsible for any damages incurred by any DSW Indemnified Person that have resulted from
such DSW Indemnified Person’s gross negligence or willful misconduct in connection with any of the
advice, actions, inactions, or DSW Services referred to above (it being understood and agreed that
the provision by any DSW Entity of any of the DSW Services contemplated by Schedule II hereof
without obtaining the consent of any party to any Contract or agreement to which any DSW Entity is
a party as of the date hereof shall not constitute gross negligence or willful misconduct by any
DSW Entity, provided that, the relevant DSW Entity has used commercially reasonable efforts
to obtain such consent).

     (b) DSW agrees to indemnify and hold harmless the Retail Ventures Indemnified Persons from and
against any damages related to, and to reimburse each Retail Ventures Indemnified Person for all
reasonable expenses as they are incurred in connection with investigating, preparing, or defending,
any Action arising out of or related to the gross negligence or willful misconduct of any DSW
Indemnified Person in connection with the DSW Services rendered or to be rendered pursuant to this
Agreement.

ARTICLE V

TERM AND TERMINATION

     SECTION 5.01. Term. Except as otherwise provided in this Article V, or in Section
8.06 or as otherwise agreed in writing by the Parties, (a) this Agreement shall have an initial
term from January 30, 2005 through January 31, 2008 (the “Initial Term”), and will be renewed
automatically thereafter for successive one-year terms unless either Party elects not to renew this
Agreement by notice in writing to the other Party not less than one hundred and eighty (180) days
prior to the end of any term, and (b) a Party’s obligation to provide or to procure, and the other
Party’s obligation to purchase, a Service shall cease as of the applicable date set forth in the
applicable Schedules or such earlier date determined in accordance with Section 5.02.

     SECTION 5.02. Termination.

     (a) Except as otherwise provided herein or in any Schedule hereto, the Parties may by mutual
agreement from time to time terminate this Agreement with respect to one or more of the Services,
in whole or in part.

     (b) Retail Ventures may terminate any DSW Service at any time if DSW shall have failed to
perform any of its material obligations under this Agreement relating to such DSW Service, Retail
Ventures shall have notified DSW in writing of such failure and such failure shall have continued
for a period of at least thirty (30) days after receipt by DSW of written notice of such failure
from Retail Ventures.

     (c) DSW may terminate any Retail Ventures Service at any time if Retail Ventures shall have
failed to perform any of its material obligations under this Agreement relating to such Retail
Ventures Service, DSW shall have notified Retail Ventures in writing of such failure, and such
failure shall have continued for a period of at least thirty (30) days after receipt by Retail
Ventures of written notice of such failure from DSW.

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     SECTION 5.03. Effect of Termination.

     (a) Other than as required by law, upon termination of any Service pursuant to Section 5.02,
or upon termination of this Agreement in accordance with its terms, the Party whose Service is
terminated (the “Terminated Party”) shall have no further obligation to provide the terminated
Service (or any Service, in the case of termination of this Agreement) and the Party terminating
such Service (the “Terminating Party”) shall have no obligation to pay any fees relating to such
terminated Services or to make any other payments hereunder; provided that, notwithstanding
such termination, (i) the Terminating Party shall remain liable to the Terminated Party for fees
owed and payable in respect of Services provided prior to the effective date of the termination;
(ii) the Terminated Party shall continue to charge the Terminating Party for administrative and
program costs relating to benefits paid after but incurred prior to the termination of any Service
and other services required to be provided after the termination of such Service, and the
Terminating Party shall be obligated to pay such expenses in accordance with the terms of this
Agreement; and (iii) the provisions of Articles 4, 5, and 8 shall survive any such termination
indefinitely. All program and administrative costs attributable to associates of any DSW Entity
under Retail Ventures Plans that relate to any period after the effective date of any such
termination shall be for the account of and paid by DSW.

     (b) Following termination of this Agreement with respect to any Service provided or procured
by a Party, the Parties agree to cooperate with each other in providing for an orderly transition
of such Service to the other Party or to a successor service provider as designated by the other
Party. Without limiting the foregoing, Retail Ventures agrees to (i) provide to DSW, within 30
days of the termination of any Benefit Service, in a usable format designated by Retail Ventures,
copies of all records relating directly or indirectly to benefit determinations with respect to any
and all associates of a DSW Entity, including, but not limited to, compensation and service
records, correspondence, plan interpretive policies, plan procedures, administration guidelines,
minutes, and any data or records required to be maintained by law and (ii) work with DSW in
developing a transition schedule with respect to such terminated Benefit Service.

ARTICLE VI

INSURANCE MATTERS

     SECTION 6.01. DSW Insurance Coverage During Transition Period.

     (a) As of the Offering Date, Retail Ventures shall maintain insurance coverage under the
Insurance Policies listed in Part (a) of Schedule III (the “Retail Ventures Insurance Policies”).
Throughout the period beginning on the Offering Date and ending upon the earlier of (i) termination
of the Service provided pursuant to this Article VI or (ii) termination or expiration of this
Agreement in accordance with its terms (the “Insurance Transition Period”), Retail Ventures shall,
subject to insurance market conditions and other factors beyond its control, maintain Insurance
Policies covering and for the benefit of the DSW Entities and their respective directors, officers,
and employees (collectively, the “DSW Covered Parties”) which are comparable to those maintained
generally by Retail Ventures covering the DSW Covered Parties prior to the Offering Date;
provided, however, that if Retail Ventures determines that (i) the amount or scope of such
insurance coverage will be reduced to a level materially inferior to the level of insurance

14

 

coverage in existence immediately prior to the Insurance Transition Period or (ii) the retention or
deductible level applicable to such insurance coverage, if any, will be increased to a level
materially greater than the levels in existence immediately prior to the Insurance Transition
Period, each other than as a result of the Offering, Retail Ventures shall give DSW notice of such
determination as promptly as practicable. Upon notice of such determination, DSW shall be entitled
to no less than sixty (60) days to evaluate DSW’s options regarding continuance of insurance
coverage under said Insurance Policies and DSW may cancel the DSW Entities’ interest in all or any
portion of such insurance coverage as of any day within such sixty (60) day period.

     (b) DSW shall promptly pay or reimburse Retail Ventures, as the case may be, for premium
expenses, deductibles or retention amounts, and any other costs and expenses which Retail Ventures
may incur in connection with the insurance coverages maintained pursuant to this Section 6.01,
including but not limited to any subsequent premium adjustments. DSW’s share of such costs and
expenses shall be calculated as set forth in Part (b) of Schedule III.

     SECTION 6.02. Cooperation; Payment of Insurance Proceeds to DSW; Agreement Not to Release
Carriers. Each Party shall share such information as is reasonably necessary in order to permit
the other Party to manage and conduct its insurance matters in an orderly fashion. Retail
Ventures, at the request of DSW, shall cooperate with and use commercially reasonable efforts to
assist DSW in recovering Insurance Proceeds under the Retail Ventures Insurance Policies for claims
relating to the DSW Business, the assets of DSW or DSW Liabilities, whether such claims arise under
any Contract or agreement, by operation of law or otherwise, existing or arising from any past acts
or events occurring or failing to occur or alleged to have occurred or to have failed to occur or
any conditions existing or alleged to have existed before the Offering Date, on the Offering Date
or during the Insurance Transition Period, and Retail Ventures shall promptly pay any such
recovered Insurance Proceeds to DSW. Neither Retail Ventures nor DSW, nor any of their respective
Subsidiaries, shall take any action which would intentionally jeopardize or otherwise interfere
with the other Party’s ability to collect any proceeds payable
pursuant to any Insurance Policy. Except as otherwise contemplated by this Agreement or any
other agreement between the Parties, after the Offering Date, neither Retail Ventures nor DSW (and
each Party shall ensure that no affiliate of such Party), without the consent of the other Party,
shall provide any insurance carrier with a release, or amend, modify or waive any rights under any
such policy or agreement, if such release, amendment, modification or waiver would adversely affect
any rights or potential rights of the other Party (or its Subsidiary) thereunder. However, nothing
in this Section 6.02 shall (A) preclude any Retail Ventures Entity or any DSW Entity from
presenting any claim or from exhausting any policy limit, (B) require any Retail Ventures Entity or
any DSW Entity to pay any premium or other amount or to incur any Liability, or (C) require any
Retail Ventures Entity or DSW Entity to renew, extend or continue any policy in force.

     SECTION 6.03. DSW Insurance Coverage After the Insurance Transition Period. From and
after expiration of the Insurance Transition Period, DSW shall be responsible for obtaining and
maintaining insurance programs for the DSW Entities’ risk of loss and such insurance arrangements
shall be separate and apart from Retail Ventures’ insurance programs.

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     SECTION
6.04. Deductibles and Self-Insured Obligations DSW shall reimburse Retail
Ventures for all amounts necessary to exhaust or otherwise to satisfy all applicable self-insured
retentions, amounts for fronted policies, deductibles and retrospective premium adjustments and
similar amounts not covered by Insurance Policies in connection with DSW Liabilities and Insured
DSW Liabilities to the extent that Retail Ventures is required to pay any such amounts.

     SECTION 6.05. Procedures with Respect to Insured DSW Liabilities.

     (a) DSW shall reimburse Retail Ventures for all amounts incurred to pursue insurance
recoveries from Insurance Policies for Insured DSW Liabilities.

     (b) The defense of claims, suits or actions giving rise to potential or actual Insured DSW
Liabilities shall be managed (in conjunction with Retail Ventures’ insurers, as appropriate) by the
Party that would have had responsibility for managing such claims, suits or actions had such
Insured DSW Liabilities been DSW Liabilities.

     SECTION 6.06. Insufficient Limits of Liability for Retail Ventures Liabilities and DSW
Liabilities.

     (a) In the event that there are insufficient limits of liability available under Retail
Ventures’ Insurance Policies in effect prior to the Distribution Date to cover the Liabilities of
Retail Ventures and/or DSW that would otherwise be covered by such Insurance Policies, then to the
extent that other insurance is not available to Retail Ventures and/or DSW for such Liabilities an
adjustment will be made in accordance with the following procedures:

     (i) To the extent the Parties are able to specifically quantify and verify the actual
Liabilities incurred by each Party to the exclusion of the other Party, each Party will be
allocated an amount equal to the product of (A) the actual Liabilities incurred by such
Party, divided by the total actual Liabilities incurred by the Parties, times (B) the lesser
of (1) the available limits of liability under Retail Ventures’ Insurance Policies in effect
prior to the Distribution Date net of uncollectible amounts attributable to insurer
insolvencies and (2) the proceeds received from Retail Ventures’ Insurance Policies if the
Liabilities are the subject of disputed coverage claims and, following consultation with
each other, Retail Ventures and/or DSW agree to accept less than full policy limits from
Retail Ventures’ and DSW’s insurers (such available limits and/or proceeds being referred to
as the “Coverage Amount”).

     (ii) To the extent that the Parties are unable to specifically quantify and verify any such
Liabilities or any part of such Liabilities to each Party (to the exclusion of the other
Party), each Party will be allocated an amount equal to their shared percentage of the
Coverage Amount.

     (iii) A Party who receives more than its share of the Coverage Amount (the “Overallocated
Party”) agrees to reimburse the other Party (the “Underallocated Party”) to the extent that
the Liabilities of the Underallocated Party that would have been covered under such
Insurance Policies is less than the Underallocated Party’s share of the Coverage Amount.

16

 

     (iv) This Section 6.06 shall terminate ten (10) years following the end of the Insurance
Transition Period, unless terminated sooner in accordance with the provisions of this
Agreement.

     SECTION 6.07. Cooperation. Retail Ventures and DSW shall cooperate with each other in
all respects, and shall execute any additional documents which are reasonably necessary, to
effectuate the provisions of this Article VI.

     SECTION 6.08. No Assignment or Waiver. This Agreement shall not be considered as an
attempted assignment of any policy of insurance or as a contract of insurance and shall not be
construed to waive any right or remedy of any Retail Ventures Entity in respect of any Insurance
Policy or any other contract or policy of insurance.

     SECTION 6.09. No Liability. DSW does hereby, for itself and as agent for each other
DSW Entity, agree that no Retail Ventures Entity or Retail Ventures Indemnified Person shall have
any Liability whatsoever as a result of the insurance policies and practices of Retail Ventures and
its Subsidiaries as in effect at any time prior to the end of the Insurance Transition Period,
including as a result of the level or scope of any such insurance, the creditworthiness of any
insurance carrier, the terms and conditions of any policy, or the adequacy or timeliness of any
notice to any insurance carrier with respect to any claim or potential claim or otherwise.

     SECTION 6.10. Additional or Alternate Insurance. Notwithstanding any other provision of this Agreement, during the Insurance Transition
Period, Retail Ventures and DSW shall work together to evaluate insurance options and secure
additional or alternate insurance for DSW and/or Retail Ventures if desired by and cost effective
for DSW and Retail Ventures. Nothing in this Agreement shall be deemed to restrict any DSW Entity
from acquiring at its own expense any other Insurance Policy in respect of any Liabilities or
covering any period.

     SECTION 6.11. Forebearance and Prior Insurance Coverage.

     (a) From and after the date of this Agreement, Retail Ventures shall not, and shall cause each
of its Subsidiaries not to, take or fail to take any action if such action or inaction, as the case
may be, would adversely affect the applicability of any insurance in effect on the effective date
of this Agreement that covers all or any part of the assets, liabilities, business or employees of
any DSW Entity with respect to events occurring prior to the Offering Date (“Applicable
Insurance”), it being understood that in no event shall any Retail Venture Entity be obligated to
pay premiums with respect to periods after the Offering Date in respect of Applicable Insurance.

     (b) Retail Ventures agrees that, from and after the Offering Date, all Applicable Insurance
directly or indirectly applicable to any assets, liabilities, business or employees of any DSW
Entity shall be for the benefit of the DSW Entity, it being understood that such Applicable
Insurance shall also be for the benefit of the Retail Venture Entities to the extent directly or
indirectly applicable to any assets, liabilities, business or employees of the Retail Venture
Entities. Without limiting the generality of the foregoing, upon DSW’s reasonable request, Retail Ventures shall use its reasonable efforts
to modify, amend or assign all Applicable Insurance policies and arrangements so that

17

 

DSW is the
direct beneficiary of such Applicable Insurance with all rights to enforce, obtain the benefit of
and take all other action in respect of such Applicable Insurance; provided that, if the
modifications, amendments or assignments contemplated by this Section 6.11(b) are not permissible,
Retail Ventures shall, and shall cause each of its Subsidiaries to, use its reasonable efforts to
enter into such other arrangements as DSW may reasonably request to ensure that DSW and the
Subsidiaries of DSW are entitled to the benefit (to the fullest extent set forth in the relevant
policies and arrangements) of any Applicable Insurance.

     SECTION 6.12. Further Agreements. The Parties acknowledge that they intend to
allocate financial obligations without violating any laws regarding insurance, self-insurance or
other financial responsibility. If it is determined that any action undertaken pursuant to this
Agreement or any related agreement is violative of any insurance, self-insurance or related
financial responsibility law or regulation, the Parties agree to work together to do whatever is
necessary to comply with such law or regulation while trying to accomplish, as much as possible,
the allocation of financial obligations as intended in this Agreement or any such related
agreement.

ARTICLE VII

ADDITIONAL AGREEMENTS

     SECTION 7.01. Annual Budget. Prior to December 31of this year and each subsequent year
so long as this Agreement is in effect, the Parties agree to work together and to cooperate with
each other in good faith to develop an annual budget (“Annual Budget”) to reflect the estimated
annual Service Costs to each Party for each of the Services to be provided and/or procured by the
other Party as contemplated by this Agreement. In the budgeting process, the Parties agree to use
their reasonable efforts to harmonize the interests of the Parties to have quality services at
affordable costs and to recover the costs of performing and/or procuring the Services. On or
before December 31 of each calendar year, an Annual Budget for the next calendar year shall be
submitted to the respective Controller or Chief Financial Officer of each of the Parties for review
and approval. Such approval shall constitute approval of the Annual Budget by the Party
represented by such person. During the months of July and January of each year so long as this
Agreement is in effect, the Parties shall conduct a semi-annual reconciliation of actual Service
Costs to budgeted Service Costs to determine if there are any significant discrepancies between
such costs and, if so, whether the payments for services should be adjusted accordingly.

     SECTION 7.02. Employment Matters. During the Initial Term, neither Party shall,
directly or indirectly, solicit active employees of the other Party without the other Party’s
consent; provided that each Party agrees to give such consent if such Party believes, in
good faith, that its consent is necessary to avoid the resignation of an employee from one Party
that the other Party would like to employ.

     SECTION 7.03. Shared Expenses Agreement. The Parties agree to share certain costs and
expenses related to the store facilities located at Four Union Square, New York, New York, pursuant
to the terms and conditions set forth in the Shared Expenses Agreement between the Parties dated of
even date herewith (the “Shared Expenses Agreement”).

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ARTICLE VIII

MISCELLANEOUS

     SECTION 8.01. Prior Agreements. In the event there is any conflict between the
provisions of this Agreement, on the one hand, and the provisions of prior services agreements
among any Retail Venture Entity and any DSW Entity (the “Prior Agreements”), on the other hand, the
provisions of this Agreement shall govern and such provisions in the Prior Agreements are deemed to
be amended so as to conform with this Agreement.

     SECTION 8.02. Other Agreements. In the event there is any inconsistency between the
provisions of this Agreement and the respective provisions of the Master Separation Agreement, the
Tax Separation Agreement and the Exchange Agreement, respectively, the respective provisions of the
Master Separation Agreement, the Tax Separation Agreement and the Exchange Agreement shall govern.

     SECTION 8.03. Future Litigation and Other Proceedings. In the event that DSW (or any
of its Subsidiaries or any of its or their respective officers or directors) or Retail Ventures (or
any of its
Subsidiaries or any of its or their respective officers or directors) at any time after the date
hereof initiates or becomes subject to any litigation or other proceedings before any governmental
authority or arbitration panel with respect to which the Parties have no prior agreements (as to
indemnification or otherwise), the Party (and its Subsidiaries and its and their respective
officers and directors) that has not initiated and is not subject to such litigation or other
proceedings shall comply, at the other Party’s expense, with any reasonable requests by the other
Party for assistance in connection with such litigation or other proceedings (including by way of
provision of information and making available of associates or employees as witnesses). In the
event that DSW (or any of its Subsidiaries or any of its or their respective officers or directors)
and Retail Ventures (or any of its Subsidiaries or any of its or their respective officers or
directors) at any time after the date hereof initiate or become subject to any litigation or other
proceedings before any governmental authority or arbitration panel with respect to which the
Parties have no prior agreements (as to indemnification or otherwise), each Party (and its officers
and directors) shall, at their own expense, coordinate their strategies and actions with respect to
such litigation or other proceedings to the extent such coordination would not be detrimental to
their respective interests and shall comply, at the expense of the requesting Party, with any
reasonable requests of the other Party for assistance in connection therewith (including by way of
provision of information and making available of employees as witnesses).

     SECTION 8.04. No Agency. Nothing in this Agreement shall constitute or be deemed to
constitute a partnership or joint venture between the Parties hereto or, except to the extent
provided in Section 4.02, constitute or be deemed to constitute any Party the agent or employee of
the other Party for any purpose whatsoever, and neither Party shall have authority or power to bind
the other Party or to contract in the name of, or create a liability against, the other Party in
any way or for any purpose.

     SECTION 8.05. Subcontractors. Either Retail Ventures or DSW may hire or engage one or
more subcontractors to perform all or any of its obligations under this Agreement; provided
that, subject to Section 4.03, Retail Ventures and DSW, as the case may be, shall in all

19

 

cases
remain primarily responsible for all obligations undertaken by it in this Agreement with respect to
the scope, quality and nature of the Services provided to the other Party and, provided
further, that, in each case, the use of a subcontractor to perform such Party’s obligations
would not substantially increase the costs to the other Party without the prior written consent of
the other Party.

     SECTION 8.06. Force Majeure.

     (a) For purposes of this Section 8.06, “Force Majeure” means an event beyond the control of
either Party, which by its nature could not have been foreseen by such Party, or, if it could have
been foreseen, was unavoidable, and includes without limitation, acts of God, storms, floods,
riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military
authorities, acts of war (declared or undeclared) and failure of energy sources.

     (b) Without limiting the generality of Section 4.03, neither Party shall be under any
liability for failure to fulfill any obligation under this Agreement, so long as and to the extent
to
which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a
consequence of circumstances of Force Majeure; provided that such Party shall have
exercised all commercially reasonable due diligence to minimize to the greatest extent possible the
effect of Force Majeure on its obligations hereunder.

     (c) Promptly on becoming aware of Force Majeure causing a delay in performance or preventing
performance of any obligations imposed by this Agreement (and termination of such delay), the Party
affected shall give written notice to the other Party giving details of the same, including
particulars of the actual and, if applicable, estimated continuing effects of such Force
Majeure on the obligations of the Party whose performance is prevented or delayed. If such notice
shall have been duly given, and actual delay resulting from such Force Majeure shall be deemed not
to be a breach of this Agreement, the period for performance of the obligation to which it relates
shall be extended accordingly; provided that if Force Majeure results in the performance of
a Party being delayed by more than 60 days, the other Party shall have the right to terminate this
Agreement with respect to any Service affected by such delay forthwith by written notice.

     SECTION 8.07. Entire Agreement. This Agreement (including the Schedules constituting
a part of this Agreement) and any other writing signed by the Parties that specifically references
or is specifically related to this Agreement constitute the entire agreement among the Parties with
respect to the subject matter hereof and supersede all prior agreements, understandings and
negotiations, both written and oral, between the Parties with respect to the subject matter hereof.
This Agreement is not intended to confer upon any Person other than the Parties hereto any rights
or remedies hereunder.

     SECTION 8.08. Information. Subject to applicable law and privileges, each Party
hereto covenants with and agrees to provide to the other Party all information regarding itself and
transactions under this Agreement that the other Party reasonably believes is required to comply
with all applicable federal, state, county and local laws, ordinances, regulations and codes,
including, but not limited to, securities laws and regulations.

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     SECTION 8.09. Notices. Any notice, instruction, direction or demand under the terms
of this Agreement required to be in writing shall be duly given upon delivery, if delivered by
hand, facsimile transmission, or mail (with postage prepaid), to the following addresses:

     (a) If to DSW, to:

Peter Horvath

DSW Inc.

4150 East 5th Avenue

Columbus, OH 43219

Fax: [_____________]

     (b) If to Retail Ventures, to:

Jim McGrady

Retail Ventures, Inc.

3241 Westerville Road

Columbus, OH 43224

Fax: 614-337-4682

or to such other addresses or telecopy numbers as may be specified by like notice to the other
Party.

     SECTION 8.10. Governing Law. This Agreement shall be construed in accordance with and
governed by the substantive internal laws of the State of Ohio, excluding its conflict of laws
rules.

     SECTION 8.11. Severability. If any terms or other provision of this Agreement or the
Schedules or exhibits hereto shall be determined by a court, administrative agency or arbitrator to
be invalid, illegal or unenforceable, such invalidity or unenforceability shall not render the
entire Agreement invalid. Rather, this Agreement shall be construed as if not containing the
particular invalid, illegal or unenforceable provision, and all other provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to either
Party. Upon such determination that any term or other provision is invalid, illegal or
unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the fullest extent permitted under applicable
law.

     SECTION 8.12. Amendment. This Agreement may only be amended by a written agreement
executed by both Parties hereto.

21

 

     SECTION 8.13. Counterparts. This Agreement may be executed in separate counterparts,
each of which shall be deemed an original and all of which, when taken together, shall constitute
one and the same agreement.

     SECTION 8.14. Authority. Each of the Parties represent to the other Party that (a) it
has the corporate or other requisite power and authority to execute, deliver and perform this
Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate or other actions, (c) it has duly and validly executed and
delivered this Agreement, and (d) this Agreement is its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly
authorized representatives.

	 	 	 	 	 
	 	 	DSW INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	 
	 	 	 	 
	

	 	Title:	 	 
	 
	 	 	 	 
	 	 	RETAIL VENTURES, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	 
	 	 	 	 
	

	 	Title:	 	 

22

 

SCHEDULE I

To

Shared Services Agreement

Dated                     , 2005

Between

Retail Ventures, Inc.

And

DSW Inc.

SERVICES TO BE PROVIDED BY Retail Ventures, Inc. and Retail Ventures

Services, Inc.

	 	 	 
	DESCRIPTION OF RETAIL VENTURES	 	RETAIL VENTURES SERVICE COSTS OR
	SERVICE	 	BILLING METHODOLOGY TO DSW
	 	 	 
	1. General Corporate and
Financial Services:
	 	 
	 
	 	 
	(i) Payroll Services
(including preparation and
distribution of employee
checks; payment of payroll
taxes, garnishment and other
deductions to appropriate
parties; preparation and filing
of employer tax returns; and
preparation of annual W-2s for
employees)

	 	Billing pro-rata based upon number
of DSW employee checks and Form W-2s
issued by Retail Ventures. To be
billed in arrears.
	 
	 	 
	(ii) Treasury Services
(including cash management;
processing and paying invoices
and purchase orders; monthly
consolidation of financial
statements; and preparation of
checks for vendor payment and
employee reimbursement)

	 	DSW to pay $1,000.00 per month and
any stand-alone cash management
software and corresponding support
costs if added for DSW Services
only.
	 
	 	 
	(iii) Sox and Auditing Fees
(including coordination of
external audit services and
assistance with compliance with
Sarbanes-Oxley requirements)

	 	Costs to be allocable based on sales.
	 
	 	 
	(iii) Accounts Payable,
General Ledger, Sales Audit,
Budget Services- and Inventory
Control. General Ledger
includes, but is not limited
to, preparation of quarterly,

	 	Overhead costs to be allocated based
on — time spent by associates, which
will be reviewed and determined
annually.

Sales Audit charges to include fees

1

 

	 	 	 
	DESCRIPTION OF RETAIL VENTURES	 	RETAIL VENTURES SERVICE COSTS OR
	SERVICE	 	BILLING METHODOLOGY TO DSW
	 	 	 
	annual and other SEC reports;
assistance with the preparation
of annual report to
shareholders and earnings
releases; and preparation of
ERISA reports.

	 	associated with software agreements
that support DSW Entities.
	 
	 	 
	(v) Tax Services (including
preparation and filing of all
federal, state and local tax
returns, reports and other
required filings; coordination
and management of tax audits
and other similar proceedings;
and assistance with tax
planning, tax strategy and
compliance with the Tax
Separation Agreement)

	 	See Tax Separation Agreement between
DSW and Retail Ventures.
	 
	 	 
	(vii) Controller Services

	 	Cost to be shared by DSW and Retail
Ventures on a 50/50 basis.
	 
	 	 
	(viii) SSC Corporate Services

	 	Charges incurred on behalf of DSW
entities will be allocated to DSW.
Charges billed to other cost centers
listed in these Agreement Schedules
will be billed under the applicable
cost center’s methodology. General,
unallocable charges to be allocated
based on Percent of Sales billing.
	 
	 	 
	2. Information Technology (all cost
centers)

	 	Pass-Through Billing with respect to
costs directly related to DSW
Entities and Percent of Sales
Billing with respect to overhead and
Services shared by DSW Entities and
Retail Ventures Entities.
	 
	 	 
	3. Human Resources (all cost centers)

	 	Pass-Through Billing with respect to
costs directly related to DSW
Entities.

DSW to pay pro-rata share of
overhead costs per employee of DSW
Entities, subject to adjustment
semi-annually.

	 
	 	 
	4. Import Management and
Compliance

	 	Pass-Through Billing with respect to
costs directly related to DSW
Entities. Importing fees (including
U.S. Customs fees, Duties,
Commissions, Ocean Freight,
Excel/APL

2

 

	 	 	 
	DESCRIPTION OF RETAIL VENTURES	 	RETAIL VENTURES SERVICE COSTS OR
	SERVICE	 	BILLING METHODOLOGY TO DSW
	 	 	 
	

	 	Logistic Carrier fees and
other associated expense) are
allocated to the businesses by
invoice (which historically is a
one-to-one relationship to
container) to the ratio of the
container contents to the whole
containers/trailer.

DSW to pay 40% of the overhead
costs. The overhead allocation
percentage will be reviewed and
determined annually.

	 
	 	 
	5. Children’s Shoe Merchandising

	 	DSW to pay 33% of the total payroll
compensation of this department.
	 
	 	 
	6. Legal Services (including general
legal advice from in-house legal
staff; preparation and review of SEC
filings and proxy materials;
assistance with corporate resolutions
and preparations for shareholders
meetings; overseeing and managing
legal policy and strategy regarding
litigation and regulatory compliance)

	 	General Counsel compensation to be
shared by DSW and Retail Ventures on
a 50/50 basis.
Pass-Through Billing with respect to
costs directly related to DSW
Entities.

Department overhead costs and
general, unallocable professional
fees to be allocated based on
Percent of Sales Billing.

	 
	 	 
	7. Risk Management (including
management of insurance and workers
compensation coverage; administration
of claims services; negotiation and
acquisition of insurance coverages
including, but not limited to,
property and business interruption,
casualty (including workers
compensation), director and officer
liability and other liability
coverages)

	 	a) Insurance premium costs billed as
specified in Schedule III.
b) — Overhead costs are billed on
the weighted value of administrative
time directed to DSW entities for
(i) Workers’ Compensation, (ii)
General Liability and (iii) Property
& All Other Lines combined with the
ratio of the number of claims that
are directly related to DSW Entities
to the total number of claims for
(i) Workers’ Compensation, (ii)
General Liability and (iii) Property
& All Other Lines. -

	 
	 	 
	8. Loss Prevention (Including
Internal Audit)

	 	Overhead costs to be allocated based
on Percent of Sales Billing.
	 
	 	 

3

 

	 	 	 
	DESCRIPTION OF RETAIL VENTURES	 	RETAIL VENTURES SERVICE COSTS OR
	SERVICE	 	BILLING METHODOLOGY TO DSW
	 	 	 
	9. RVI Corporate Executive Overhead
Allowance

	 	DSW will pay 35% of the total
overheads of this cost center that
are associated with the CFO of RVI.
It will exclude the costs associated
with the CEO of RVI.
	 
	 	 
	10. Distribution Services

	 	DSW will pay 10% of total overhead
costs for this department.
	 
	 	 
	11. Depreciation of IT Office
Equipment Located at the Westerville
Road Office
Facility (Cost Center 01109)

	 	Service fee charged to DSW for
depreciation expenses associated
with IT office equipment located at
the Westerville Road Office. The
billable charge for depreciation
expenses is based on Percent of
Sales Billing.
	 
	 	 
	12. Letters of Credit Associated with
Workers’ Compensation and IBNR

	 	DSW to be billed 15% of costs
associated with letters of credit
for workers compensation and IBNR.

4

 

SCHEDULE II

To

Shared Services Agreement

Dated __________, 2005

Between

Retail Ventures, Inc.

And

DSW Inc.

__________________

SERVICES TO BE PROVIDED BY DSW INC.

	 	 	 	 	 
	DESCRIPTION OF DSW SERVICE	 	DSW SERVICE COSTS OR BILLING METHODOLOGY TO RETAIL VENTURES
	 
	 	 	 	 
	1.

	 	Shoe Merchandising:	 	 
	 
	 	 	 	 
	

	 	(i) Planning and Allocation
Support for Value City
Department Stores, LLC
	 	Value City to pay $20,000 per month.
	 
	 	 	 	 
	2.

	 	Distribution	 	 
	 
	 	 	 	 
	

	 	(i) Distribution Services and
Transportation Management for
Value City Department Stores,
LLC and Filene’s Basement
	 	(i) Fixed distribution center
costs (e.g., storage) based upon
predetermined costs per pair shoes
shipped.

(ii) Variable distribution center
costs based upon predetermined
costs per pair shoes shipped.

(iii) Transportation Costs- both
inbound and outbound transportation
costs (inclusive of wages,
associated payroll costs, occupancy
expenses and operating expenses)
are allocated to the respective
businesses according to current
month activity, which is based on
merchandise receipts as determined
by dollar value.

(iv) Professional fees to be billed
pro-rata based on shoe pairs
shipped.
	 
	 	 	 	 

1

 

	 	 	 	 	 
	DESCRIPTION OF DSW SERVICE	 	DSW SERVICE COSTS OR BILLING METHODOLOGY TO RETAIL VENTURES
	3 -.

	 	Real Estate/Property Management
	 	(a) Overhead costs to be allocated
based on time spent by associates,
which will be reviewed and
determined annually.
(b) Related outside
contractors/consultant costs,
including legal services, allocated
based on pass-through billing.
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	4 -.
	 	Store Design and Construction
Management
	 	(a) A 5% service fee based on total
development costs per project, plus
expenses incurred by DSW on RVI
projects. (b) Overhead costs allocated
on the proportion of RVI projects
to total projects. (extraordinary
projects to be determined on a
project by project basis).
Standard American Institute of
Architects (AIA) form of “Agreement
between Owner and Design/Builder”
to be used as design and
construction management agreement
between DSW and Retail Ventures.

2

 

SCHEDULE III

To

Shared Services Agreement

Dated ______________, 2005

Between

Retail Ventures, Inc.

And

DSW Inc.

____________________________________

INSURANCE POLICIES MAINTAINED BY RETAIL VENTURES

     The Insurance Polices described in Part (a) below shall be maintained by Retail Ventures, Inc.
(“Retail Ventures”) on behalf of DSW Inc. (“DSW”) and its Subsidiaries pursuant to the terms of the
Shared Services Agreement between Retail Ventures and DSW dated ___, 2005, of which this
Schedule is a part. The insurance premiums related to such policies to be paid by DSW, or for
which Retail Ventures shall be reimbursed by DSW, are set forth or described in Part (b) of this
Schedule. Capitalized terms not otherwise defined in this Schedule shall have the respective
meanings assigned to them in the Shared Services Agreement.

	(a)  	List of Insurance Policies

	 	(i)  	Liability:

	 	   	Steadfast Insurance Co. #SCO3822186-02 — primary
— $1MM/occurrence

XL Insurance Co. #US00007102LI04A — umbrella —
$25MM/occ/agg

Ohio Casualty Co. #ECO(05)52976611, excess GL — $25MM/occ/agg

American Guarantee # AEC5086837500- excess GL — $50MM/occ/agg

Liberty Mutual Ins. #LQ1-B71-078764032 — excess GL —
$50MM/occ/agg

ACE Ins. Group #HXW776336 — excess GL — $25MM/occ/agg

Great American Ins. #TUE357977102 — excess GL — $25MM/occ/agg

	 	(ii)  	Property

	 	   	FM Global Insurance #NB918 — $1,000,000,000 blanket
limit

Ace/Westchester #I20651258002 — excess flood — $10MM

Great American #CPP5385581 & #ACG4285581 — excess flood
— $5MM

Arrowhead Group #303219EQ1 — excess earthquake — $3MM

North Shore Mgmt. #NSM24310 — excess earthquake — $12MM

FM Global #NB918 — Swansea primary earthquake — $1MM

1

 

	 	(iii)  	Automobile

	 	   	St. Paul Travelers #TC2JCAP393K338 — $2MM combined single limit

	 	(iv)  	Cargo

	 	   	Lloyd’s #CD044747 — primary cargo — $10MM/conveyance

Lloyd’s #CD044765 — excess cargo — $5MM/conveyance

	 	(v)  	Worker Compensation

	 	   	St. Paul Travelers #TC2JUB466K1644 — statutory
limits

St. Paul Travelers #TRJUB466K1656 — retro AZ, MA & WI
only

Ohio — Self-insured under SI20005342

West Virginia — State Fund

	 	(vi)  	Director and Officer Liability Insurance

	 	   	Chubb #8169-6117 — primary — $10MM

National Union (AIG) #492-1705 — excess D&O — $10MM

XL Specialty #ELU086317-04 — excess D&O — $10MM

Great American #DFX0009650 — excess D&O — $10MM

ACE USA #DOX G21650444-002 — excess D&O — $10MM

RSUI #NHS615976 — excess D&O — $10MM

Houston Casualty #14-MGU-04-A3948 — excess D&O —
$10MM

AXIS #RAN503483 — excess D&O — $10MM

Houston Casualty #14-MGU-14-A3949 — excess D&O —
$10MM

National Union (AIG) #4921720 — excess D&O — $10MM

XL Specialty #ELU086316-04 — Side A coverage — $10MM

	 	(vii)  	Executive Protection Insurance

	 	   	National Union (AIG) #006082944 — crime — $10MM

National Union (AIG) #647-5648 — special crime (K&R) — $10MM

	 	(viii)  	Other

	 	   	Fireman’s Fund #MXI97900076 — motor truck cargo
— $250K/vehicle

XL Insurance #XLPUN1502904 — excess punitives — $25MM
agg

Magna Carta #MCPD201467 — excess punitives — $25MM agg

	(b)  	Calculation of Premium
	 
	   	(i) DSW shall promptly pay or reimburse Retail Ventures 100% of premium expenses,
deductibles or retention amounts Retail Ventures may incur in connection with Insurance
Policies that relate solely to the DSW Business.
	 
	   	(ii) DSW shall promptly pay or reimburse Retail Ventures 50% of premium expenses,
deductibles or retention amounts Retail Ventures may incur in connection with Director and
Officer Liability Insurance and Executive Protection Insurance.

2

 

	   	(iii) DSW shall promptly pay or reimburse Retail Ventures its proportionate share of
premium expenses, deductibles or retention amounts Retail Ventures may incur in connection
with Insurance Policies that relate the Retail Ventures Business and the DSW Business. The
“Retail Ventures Business” means any business of Retail Ventures other than the DSW
Business. DSW’s proportionate will be calculated as follows:
	 
	 	(iv) Liability insurance costs shall be prorated based on the ratio of DSW’s sales and
loss percentage as compared to total sales and loss. [“Loss percentage” is defined as total
incurred claims cost for the prior insurance policy term. “Incurred claims cost” equals
reserves plus paid amounts.] This policy is subject to audit and further premium
adjustment at the end of the policy term.
	 
	 	(v) Property insurance costs shall be prorated based on the ratio of the value of DSW
property covered by the insurance policy as compared to the total value of all property
covered by the insurance policy. [“Value of Property” is defined as retail inventory,
fixtures, leaseholds, real property, rental income, if any, and business interruption.]
	 
	 	(vi) Automobile insurance costs shall be charged on each insured vehicle owned or leased
by DSW which is covered by the insurance policy.
	 
	 	(vii) Cargo insurance costs shall be prorated based on the ratio of the duties paid for
DSW imports covered by the insurance policy as compared to the total duties paid for all
imports covered by the insurance policy.
	 
	 	(viii) Workers Compensation costs shall be prorated based on an actual per state rate
against projected payrolls plus estimated claims cost per location. This policy is subject
to audit and further premium adjustment at the end of the policy term. Claims will
continue to be invoiced by the insurance carrier until all claims are closed. Actual
claims costs will be allocated to the location from which the claim originated.
	 
	 	(ix) Executive Protection and Others—Executive Protection Insurance (or crime) and other
costs shall be prorated based on the ratio of sales for DSW as compared to the total sales
covered by the policy.

3EX-10.28

Table of Contents

Exhibit 10.28

FORM OF TAX SEPARATION AGREEMENT

TAX SEPARATION AGREEMENT

by and among

RETAIL VENTURES, INC.

AND ITS AFFILIATES

and

DSW INC.

AND ITS AFFILIATES

Dated

 

Table of Contents

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 1.	 	Definitions.
	 	 	1	 
	Section 2.	 	Preparation and Filing of Tax Returns.
	 	 	8	 
	 	 	 	 	2.01. RVI’s Responsibility
	 	 	8	 
	 	 	 	 	2.02. DSW’s Responsibility
	 	 	8	 
	 	 	 	 	2.03. Agent
	 	 	8	 
	 	 	 	 	2.04. Manner of Tax Return Preparation
	 	 	9	 
	 	 	 	 	2.05. Tax & Accounting Services Agreement
	 	 	10	 
	Section 3.	 	Liability for Taxes
	 	 	11	 
	 	 	 	 	3.01. DSW’s Liability for Taxes
	 	 	11	 
	 	 	 	 	3.02. RVI’s Liability for Taxes
	 	 	11	 
	 	 	 	 	3.03. Taxes, Refunds and Credits.
	 	 	11	 
	 	 	 	 	3.04. Payment of Tax Liability.
	 	 	12	 
	 	 	 	 	3.05. Computation.
	 	 	12	 
	Section 4.	 	Distribution Taxes
	 	 	12	 
	 	 	 	 	4.01. Distribution Taxes
	 	 	12	 
	 	 	 	 	4.02. Carrybacks
	 	 	14	 
	 	 	 	 	4.03. Allocation of Tax Items
	 	 	15	 
	 	 	 	 	4.04. Continuing Covenants
	 	 	15	 
	 	 	 	 	4.05. Allocation of Tax Assets
	 	 	17	 
	Section 5.	 	Employee Taxes.
	 	 	17	 
	 	 	 	 	5.01. In General.
	 	 	17	 
	 	 	 	 	5.02. Concurrent Employees.
	 	 	17	 
	 	 	 	 	5.03. Leased Employees.
	 	 	18	 
	Section 6.	 	Indemnification
	 	 	18	 
	 	 	 	 	6.01. In General
	 	 	18	 
	 	 	 	 	6.02. Inaccurate or Incomplete Information
	 	 	18	 
	 	 	 	 	6.03. No Indemnification for Tax Items
	 	 	18	 
	Section 7.	 	Payments.
	 	 	19	 
	 	 	 	 	7.01. Estimated Tax Payments
	 	 	19	 
	 	 	 	 	7.02. True-Up Payments
	 	 	19	 
	 	 	 	 	7.03. Redetermination Amounts
	 	 	19	 
	 	 	 	 	7.04. Payments of Refunds and Credits
	 	 	19	 
	 	 	 	 	7.05. Payments Under This Agreement
	 	 	19	 

i

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Section 8.	 	Tax Proceedings.
	 	 	20	 
	 	 	 	 	8.01. In General
	 	 	20	 
	 	 	 	 	8.02. Participation of non-Controlling Party
	 	 	21	 
	 	 	 	 	8.03. Notice
	 	 	21	 
	 	 	 	 	8.04. Control of Distribution Tax Proceedings
	 	 	21	 
	Section 9.	 	Stock Options and Restricted Stock
	 	 	22	 
	 	 	 	 	9.01. In General.
	 	 	22	 
	 	 	 	 	9.02. Notices, Withholding, Reporting.
	 	 	22	 
	 	 	 	 	9.03. Adjustments.
	 	 	22	 
	Section 10.	 	Miscellaneous Provisions.
	 	 	22	 
	 	 	 	 	10.01. Effectiveness
	 	 	22	 
	 	 	 	 	10.02. Cooperation and Exchange of Information
	 	 	22	 
	 	 	 	 	10.03. Dispute Resolution
	 	 	23	 
	 	 	 	 	10.04. Notices.
	 	 	24	 
	 	 	 	 	10.05. Changes in Law
	 	 	24	 
	 	 	 	 	10.06. Confidentiality
	 	 	24	 
	 	 	 	 	10.07. Successors
	 	 	25	 
	 	 	 	 	10.08. Affiliates
	 	 	25	 
	 	 	 	 	10.09. Authorization, Etc
	 	 	26	 
	 	 	 	 	10.10. Entire Agreement
	 	 	26	 
	 	 	 	 	10.11. Applicable Law; Jurisdiction
	 	 	26	 
	 	 	 	 	10.12. Counterparts
	 	 	26	 
	 	 	 	 	10.13. Severability
	 	 	26	 
	 	 	 	 	10.14. No Third Party Beneficiaries
	 	 	27	 
	 	 	 	 	10.15. Waivers, Etc
	 	 	27	 
	 	 	 	 	10.16. Setoff
	 	 	27	 
	 	 	 	 	10.17. Other Remedies
	 	 	27	 
	 	 	 	 	10.18. Amendment and Modification.
	 	 	27	 
	 	 	 	 	10.19. Waiver of Jury Trial.
	 	 	27	 
	 	 	 	 	10.20. Interpretations.
	 	 	27	 

ii

Table of Contents

TAX SEPARATION AGREEMENT

     THIS TAX SEPARATION AGREEMENT (this “Agreement”) dated as of , 2005, by and among Retail
Ventures, Inc., an Ohio corporation (“RVI”), each RVI Affiliate (as defined below), DSW Inc., an
Ohio corporation and currently an indirect, wholly-owned subsidiary of RVI (“DSW”), and each DSW
Affiliate (as defined below) is entered into in connection with the IPO (as defined below).

RECITALS

     WHEREAS, as of the date hereof, RVI and its direct and indirect domestic subsidiaries are
members of an Affiliated Group (as defined below), of which RVI is the common parent;

     WHEREAS, RVI owns all of the issued and outstanding shares of DSW stock;

     WHEREAS, RVI intends to cause DSW to complete the DSW Recapitalization (as defined below);

     WHEREAS, RVI intends, sometime after the DSW Recapitalization, to effect the initial public
offering by DSW of DSW common stock that will reduce RVI’s ownership of DSW, on a fully diluted
basis, to less than eighty percent (80%) of the value of DSW’s common stock (the “IPO”); and

     WHEREAS, in contemplation of the IPO pursuant to which DSW (and its direct and indirect
domestic subsidiaries) will cease to be members of the Affiliated Group (as defined below) of which
RVI is the common parent, the parties hereto have determined to enter into this Agreement, setting
forth their agreement with respect to certain tax matters.

AGREEMENT

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

Section 1. Definitions.

     As used in this Agreement, capitalized terms shall have the following meanings (such meanings
to be equally applicable to both the singular and the plural forms of the terms defined):

     “Affiliated Group” means an affiliated group of corporations within the meaning of section
1504(a)(1) of the Code that files a consolidated return for United States federal Income Tax
purposes.

     “After Tax Amount” means any additional amount necessary to reflect the hypothetical Tax
consequences of the receipt or accrual of any payment required to be made under this

1

Table of Contents

Agreement (including payment of an additional amount or amounts hereunder and the effect of
the deductions available for interest paid or accrued and for Taxes such as state and local Income
Taxes), determined by using the highest applicable statutory corporate Income Tax rate (or rates,
in the case of an item that affects more than one Tax) for the relevant taxable period (or portion
thereof).

     “Agreement” has the meaning set forth in the preamble hereto.

     “Audit” means any audit, notice of assessment of Taxes, assessment of Taxes, other examination
by any Tax Authority, proceeding, or appeal of such a proceeding relating to Taxes, whether
administrative or judicial, including proceedings relating to competent authority determinations.

     “Carryback Period” has the meaning set forth in Section 4.02 of this Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Combined Return” means any Tax Return, other than with respect to United States federal
Income Taxes, filed on a consolidated, combined (including nexus combination, worldwide
combination, domestic combination, line of business combination or any other form of combination)
or unitary basis wherein DSW or one or more DSW Affiliates join in the filing of such Tax Return
(for any taxable period or portion thereof) with RVI or one or more RVI Affiliates.

     “Consolidated Return” means any Tax Return with respect to United States federal Income Taxes
filed on a consolidated basis wherein DSW or one or more DSW Affiliates join in the filing of such
Tax Return (for any taxable period or portion thereof) with RVI or one or more RVI Affiliates.

     “Controlling Party” has the meaning set forth in Section 8.01 of this Agreement.

     “Distribution” means any distribution by RVI of all of the issued and outstanding shares of
DSW stock that RVI holds at such time to RVI shareholders on a pro rata basis with respect to its
outstanding shares of RVI common stock in a transaction intended to qualify as a tax-free
distribution under section 355 of the Code.

     “Distribution Taxes” means any Taxes imposed on, or increase in Taxes incurred by, RVI or any
RVI Affiliate, and any Taxes of an RVI shareholder (or former RVI shareholder) that are required
(other than pursuant to any contractual indemnification obligation with an RVI shareholder) to be
paid or reimbursed by RVI or any RVI Affiliate pursuant to a legal determination, provided that RVI
shall have vigorously defended itself in any legal proceeding involving Taxes of an RVI
shareholder, (without regard to whether such Taxes are offset or reduced by any Tax Asset, Tax
Item, or otherwise) resulting from, or arising in connection with, the failure of a Distribution to
qualify as a tax-free transaction under section 355 of the Code (including any Tax resulting from
the application of section 355(d) or section 355(e) of the Code to a Distribution)

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or corresponding provisions of the laws of any other jurisdictions. Any Income Tax referred
to in the immediately preceding sentence shall be determined using the highest applicable statutory
corporate Income Tax rate for the relevant taxable period (or portion thereof).

     “DSW” has the meaning set forth in the preamble hereto.

     “DSW Affiliate” means any corporation or other entity directly or indirectly “controlled” by
DSW at the time in question, where “control” means the ownership of fifty percent (50%) or more of
the ownership interests of such corporation or other entity (by vote or value) or the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such corporation or other entity.

     “DSW Business” means the business and operations conducted by DSW and its Subsidiaries as such
business and operations will continue after the IPO Date.

     “DSW Business Records” has the meaning set forth in Section 10.02(b) of this Agreement.

     “DSW Group” means the Affiliated Group, or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which DSW will be the common parent
corporation immediately after the IPO and including any corporation or other entity which may
become a member of such group from time to time.

     “DSW Recapitalization” means the recapitalization of DSW’s stock structure intended to be
completed by the (i) cancellation of all of DSW’s then authorized, issued and/or outstanding stock,
(ii) authorization of two new classes of DSW stock, DSW Class A Common Stock and DSW Class B Common
Stock, which will be identical in all respects, except that each share of DSW Class B Common Stock
will be entitled to more votes per share than each share of DSW Class A Common Stock, and (iii)
issuance of DSW Class B Common Stock to RVI with respect to RVI’s ownership of DSW stock.

     “DSW Separate Tax Liability” means an amount equal to the Tax liability that DSW and each DSW
Affiliate would have incurred if they had filed a consolidated return, combined return (including
nexus combination, worldwide combination, domestic combination, line of business combination or any
other form of combination), unitary return or a separate return, as the case may be, separate from
the members of the RVI Group, for the relevant Tax period, and such amount shall be computed by RVI
in a manner consistent with (i) general Tax accounting principles, (ii) the Code and the Treasury
regulations promulgated thereunder, and (iii) past practice, if any. For the avoidance of doubt,
the DSW Separate Tax Liability shall in no event be less than zero, and nothing in this Agreement
shall be construed to require compensation by RVI for any losses of DSW or any DSW Affiliate.

     “Employment Taxes” means any and all employment Taxes, including payroll and employee
withholding, unemployment insurance, social security, welfare, disability and similar Taxes, fees,
duties, levies, customs, tariffs, imposts, assessments, obligations and charges.

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     “Estimated Tax Installment Date” means, with respect to United States federal Income Taxes,
the estimated Tax installment due dates prescribed in section 6655(c) of the Code and, in the case
of any other Tax, means any other date on which an installment payment of an estimated amount of
such Tax is required to be made.

     “Final Determination” shall mean the final resolution of liability for any Tax for any taxable
period, by or as a result of: (i) a final and unappealable decision, judgment, decree or other
order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing
agreement or accepted offer in compromise under sections 7121 or 7122 of the Code, or a comparable
agreement under the laws of other jurisdictions, which resolves the entire Tax liability for any
taxable period; (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but
only after the expiration of all periods during which such refund may be recovered by the
jurisdiction imposing the Tax; or (iv) any other final disposition, including by reason of the
expiration of the applicable statute of limitations.

     “Income Tax” shall mean any federal, state, local or foreign Tax determined (in whole or in
part) by reference to net income, net worth, gross receipts or capital, or any such Taxes imposed
in lieu of such a Tax. For the avoidance of doubt, the term “Income Tax” includes any franchise
Tax, net worth, gross receipts, capital or any such Taxes imposed in lieu of such a Tax.

     “Income Tax Return” means any Tax Return relating to any Income Tax.

     “Independent Firm” means a nationally recognized law or accounting firm, which firm is
independent of both parties.

     “IPO” has the meaning set forth in the recitals hereto.

     “IPO Date” means the close of business on the date which the IPO is effected.

     “IRS” means the United States Internal Revenue Service or any successor thereto, including its
agents, representatives, and attorneys.

     “Joint Responsibility Item” means any Tax Item for which the non-Controlling Party’s
responsibility under this Agreement could exceed three hundred thousand dollars ($300,000), but not
a Sole Responsibility Item.

     “Market Valuation” means as of the first business day immediately following the date on which
the Distribution is effected (i) with respect to DSW, the fair market value of all of its issued
and outstanding stock (measured using the mean of the high and low of the public trading price as
published in The Wall Street Journal) as of such date, or (ii) with respect to RVI, the fair market
value of all of its issued and outstanding stock (measured using the mean of the high and low of
the public trading price as published in The Wall Street Journal) as of such date.

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     “Non-Income Tax Return” means any Tax Return relating to any Tax other than an Income Tax.

     “Officer’s Certificate” means a letter executed by an officer of RVI or DSW and provided to
Tax Counsel as a condition for the completion of a Tax Opinion or Supplemental Tax Opinion.

     "Option” means an option to acquire common stock, or other equity-based incentives the
economic value of which is designed to mirror that of an option, including non-qualified stock
options, discounted non-qualified stock options, cliff options to the extent stock is issued or
issuable (as opposed to cash compensation), and tandem stock options to the extent stock is issued
or issuable (as opposed to cash compensation).

     “Owed Party” has the meaning set forth in Section 7.05 of this Agreement.

     “Owing Party” has the meaning set forth in Section 7.05 of this Agreement.

     “Payment Period” has the meaning set forth in Section 7.05(e) of this Agreement.

     “Post-IPO Period” means any taxable period beginning after the IPO Date.

     “Pre-IPO Period” means any taxable period beginning on or before the IPO Date.

     “Ruling” means (i) any private letter ruling issued by the IRS in connection with a
Distribution in response to a request for such a private letter ruling filed by RVI (or any RVI
Affiliate) prior to the date of a Distribution, and (ii) any similar ruling issued by any other
Taxing Authority addressing the application of a provision of the laws of another jurisdiction to a
Distribution.

     “Ruling Documents” means (i) the request for a Ruling filed with the IRS, together with any
supplemental filings or other materials subsequently submitted on behalf of RVI, its Subsidiaries
and shareholders to the IRS, the appendices and exhibits thereto, and any Ruling issued by the IRS
to RVI (or any RVI Affiliate) in connection with a Distribution and (ii) any similar filings
submitted to, or rulings issued by, any other Taxing Authority in connection with a Distribution.

     “RVI” has the meaning set forth in the preamble hereto.

     “RVI Affiliate” means any corporation or other entity directly or indirectly “controlled” by
RVI where “control” means the ownership of fifty percent (50%) or more of the ownership interests
of such corporation or other entity (by vote or value) or the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of such corporation or
other entity, but at all times excluding DSW or any DSW Affiliate.

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     “RVI Business” means all of the businesses and operations conducted by RVI and its
Subsidiaries, excluding the DSW Business, as defined above, at any time, whether prior to, or after
the IPO Date.

     “RVI Group” means the Affiliated Group, or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which RVI is the common parent
corporation, and any corporation or other entity which may be, may have been or may become a member
of such group from time to time, but excluding any member of the DSW Group.

     “Shared Services Agreement” means the Shared Services Agreement, dated effective as of January
30, 2005, by and between RVI and DSW.

     “Sole Responsibility Item” means any Tax Item for which the non-Controlling Party has the
entire economic liability under this Agreement.

     “Subsidiary” whenever used in reference to any person means any corporation or other entity
directly or indirectly “controlled” by such person where “control” means the ownership of fifty
percent (50%) or more of the ownership interests of such corporation or other entity (by vote or
value) or the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies of such corporation or other entity.

     “Supplemental Ruling” means (i) any ruling (other than the Ruling) issued by the IRS in
connection with a Distribution, and (ii) any similar ruling issued by any other Taxing Authority
addressing the application of a provision of the laws of another jurisdiction to a Distribution.

     “Supplemental Ruling Documents” means (i) the request for a Supplemental Ruling, together with
any supplemental filings or other materials subsequently submitted, the appendices and exhibits
thereto, and any Supplemental Rulings issued by the IRS in connection with a Distribution and (ii)
any similar filings submitted to, or rulings issued by, any other Taxing Authority in connection
with a Distribution.

     “Supplemental Tax Opinion” has the meaning set forth in Section 4.04(d) of this Agreement.

     “Taxes” means all federal, state, local or foreign taxes, charges, fees, duties, levies,
imposts, rates or other assessments, including income, gross receipts, excise, property, sales,
use, license, capital stock, transfer, franchise, payroll, withholding, social security, value
added or other taxes, (including any interest, penalties or additions attributable thereto) and a
“Tax” shall mean any one of such Taxes.

     “Tax Asset” means any Tax Item that has accrued for Tax purposes, but has not been realized
during the taxable period in which it has accrued, and that could reduce a Tax in another taxable
period, including a net operating loss, net capital loss, investment tax credit, foreign tax
credit, charitable deduction or credit related to alternative minimum tax or any other Tax credit.

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     “Tax Benefit” means a reduction in the Tax liability (or increase in refund or credit or any
item of deduction or expense) of a taxpayer (or of the Affiliated Group, or similar group of
entities as defined under corresponding provisions of the laws of any other jurisdiction, of which
it is a member) for any taxable period. Except as otherwise provided in this Agreement, a Tax
Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only
if and to the extent that the Tax liability of the taxpayer (or of the Affiliated Group, or similar
group of entities as defined under corresponding provisions of the laws of any other jurisdiction,
of which it is a member) for such period, after taking into account the effect of the Tax Item on
the Tax liability of such taxpayer (or of the Affiliated Group, or similar group of entities as
defined under corresponding provisions of the laws of any other jurisdiction, of which it is a
member) in the current period and all prior periods, is less than it would have been had such Tax
liability been determined without regard to such Tax Item.

     “Tax Counsel” means a nationally recognized law firm selected by RVI to provide a Tax Opinion.

     “Tax Detriment” means an increase in the Tax liability (or reduction in refund or credit or
any item of deduction or expense) of a taxpayer (or of the Affiliated Group, or similar group of
entities as defined under corresponding provisions of the laws of any other jurisdiction, of which
it is a member) for any taxable period. Except as otherwise provided in this Agreement, a Tax
Detriment shall be deemed to have been realized or incurred from a Tax Item in a taxable period
only if and to the extent that the Tax liability of the taxpayer (or of the Affiliated Group, or
similar group of entities as defined under corresponding provisions of the laws of any other
jurisdiction, of which it is a member) for such period, after taking into account the effect of the
Tax Item on the Tax liability of such taxpayer (or of the Affiliated Group, or similar group of
entities as defined under corresponding provisions of the laws of any other jurisdiction, of which
it is a member) in the current period and all prior periods, is more than it would have been had
such Tax liability been determined without regard to such Tax Item.

     “Tax Item” means any item of income, gain, loss, deduction, expense or credit, or other
attribute that may have the effect of increasing or decreasing any Tax.

     “Tax Opinion” means an opinion issued by Tax Counsel as one of the conditions to completing a
Distribution addressing certain United States federal Income Tax consequences of a Distribution
under section 355 of the Code.

     “Tax Return” means any return, report, certificate, form or similar statement or document
(including any related or supporting information or schedule attached thereto and any information
return, amended tax return, claim for refund or declaration of estimated Tax) required to be
supplied to, or filed with, a Taxing Authority in connection with the determination, assessment or
collection of any Tax or the administration of any laws, regulations or administrative requirements
relating to any Tax.

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     “Tax & Accounting Services” has the meaning set forth in Section 2.05(a) of this Agreement.

     “Taxing Authority” means any governmental authority or any subdivision, agency, commission or
authority thereof or any quasi-governmental or private body having jurisdiction over the
assessment, determination, collection or imposition of any Tax (including the IRS).

Section 2. Preparation and Filing of Tax Returns.

     2.01. RVI’s Responsibility. Subject to the other applicable provisions of this
Agreement, RVI shall have sole and exclusive responsibility for the preparation and filing of:

               (a) all Consolidated Returns and all Combined Returns for any taxable period;

               (b) all Income Tax Returns (other than Consolidated Returns and Combined Returns) with
respect to RVI and/or any RVI Affiliate for any taxable period;

               (c) all Non-Income Tax Returns with respect to DSW, any DSW Affiliate, or the DSW Business or
any part thereof, that are required to be filed (taking into account any extension of time which
has been requested or received) on or prior to the IPO Date; and

               (d) all Non-Income Tax Returns with respect to RVI, any RVI Affiliate, or the RVI Business or
any part thereof for any taxable period.

     2.02. DSW’s Responsibility. Subject to the other applicable provisions of this
Agreement, DSW shall have sole and exclusive responsibility for the preparation and filing of:

               (a) all Income Tax Returns (other than Consolidated Returns and Combined Returns) with
respect to DSW and/or any DSW Affiliate for any taxable period;

               (b) all Non-Income Tax Returns with respect to DSW, any DSW Affiliate, or the DSW Business or
any part thereof, that are required to be filed (taking into account any extension of time which
has been requested or received) after the IPO Date.

     2.03. Agent. Subject to the other applicable provisions of this Agreement, DSW hereby
irrevocably designates, and agrees to cause each DSW Affiliate to so designate, RVI as its sole and
exclusive agent and attorney-in-fact to take such action (including execution of documents) as RVI,
in its sole discretion, may deem appropriate in any and all matters (including Audits) relating to
any Tax Return described in Section 2.01 of this Agreement.

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     2.04. Manner of Tax Return Preparation.

               (a) Unless otherwise required by a Taxing Authority, the parties hereby agree to prepare and
file all Tax Returns, and to take all other actions, in a manner consistent with (1) this
Agreement, (2) any Tax Opinion, (3) any Supplemental Tax Opinion,
(4) any Ruling, and (5) any Supplemental Ruling. All Tax Returns
shall be filed on a timely basis (taking into account
applicable extensions) by the party responsible for filing such returns under this Agreement.

               (b) Subject to the other applicable provisions of this Agreement, RVI shall have the
exclusive right, in its sole discretion, with respect to any Tax Return described in Section 2.01
of this Agreement, to determine (1) the manner in which such Tax Return shall be prepared and
filed, including the elections, method of accounting, positions, conventions and principles of
taxation to be used and the manner in which any Tax Item shall be reported, (2) whether any
extensions shall be requested, (3) the elections that will be made by RVI, any RVI Affiliate, DSW,
and/or any DSW Affiliate on such Tax Return, (4) whether any amended Tax Returns shall be filed,
(5) whether any claims for refund shall be made, (6) whether any refunds shall be paid by way of
refund or credited against any liability for the related Tax, and (7) whether to retain outside
firms to prepare and/or review such Tax Returns. In the case of any Consolidated Return or
Combined Return due (with applicable extensions) forty-five (45) days or more after the IPO Date
including or reporting a DSW Separate Tax Liability, and any Tax Return due at any time after the
IPO Date that reports a DSW Separate Tax Liability in excess of five hundred thousand dollars
($500,000), RVI shall provide to DSW a pro forma draft of the portion of such Tax Return that
reflects the DSW Separate Tax Liability and a statement showing in reasonable detail RVI’s
calculation of the DSW Separate Tax Liability (including copies of all worksheets and other
materials used in preparation thereof) at least twenty (20) days prior to the due date (with
applicable extensions) for the filing of such Tax Return for DSW’s review and comment. DSW shall
provide its comments to RVI at least fifteen (15) days prior to the due date (with applicable
extensions) for the filing of such Tax Return. Any dispute regarding the reporting of any Tax Item
on such Tax Return shall be resolved pursuant to Section 10.03 of this Agreement. The relevant Tax
Item shall be reported in the manner that the Independent Firm determines is more appropriate, and
such determination shall be final and binding on RVI and DSW. If DSW has not provided its comments
on the pro forma draft of the portion of the Tax Return, or in the case of a dispute regarding the
reporting of any Tax Item, such dispute has not been resolved by the due date (with applicable
extension) for the filing of any Tax Return, RVI shall file such Tax Return reporting all Tax Items
in the manner as originally set forth on the pro forma draft of the portion of the Tax Return
provided to DSW; provided, however, that RVI agrees that it will thereafter file an
amended Tax Return, if necessary, reporting any disputed Tax Item in the manner determined by the
Independent Firm, and any other Tax Item as agreed upon by RVI and DSW.

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     2.05. Tax & Accounting Services Agreement.

               (a) In General. RVI shall prepare for DSW any Tax Return described in Section 2.02
of this Agreement and provide other Tax related services to DSW, as set forth on Schedule 2.05(a)
attached hereto (the “Tax & Accounting Services”). In consideration for the Tax & Accounting
Services, DSW shall (i) pay to RVI fifty percent (50%) of any and all costs associated with the
maintenance and operation of RVI’s tax department (including any and all overhead expenses) for
each month in which the Tax & Accounting Services are to be performed, and (ii) reimburse RVI for
fifty percent (50%) of any and all third party fees and expenses incurred by RVI; provided,
however, that, (i) DSW shall reimburse RVI for one hundred percent (100%) of any and all
third party fees and expenses incurred by RVI solely in connection with the performance of the Tax
& Accounting Services, and (ii) DSW shall not be required to reimburse RVI for any portion of any
third party fees and expenses incurred by RVI solely for the benefit of RVI or any RVI Affiliate.
Payment and reimbursement with respect to Tax & Accounting Services performed in a particular month
shall be made within twenty (20) days of the end of such month in immediately available funds as
instructed by RVI ; provided, however, that, upon termination of the rights and
obligations pursuant to this Section 2.05, payment and reimbursement with respect to all Tax &
Accounting Services performed through and including the effective date of the termination shall be
made at least two (2) days prior to the effective date of the termination. Either party shall
have the right to terminate all rights and obligations pursuant to this Section 2.05 effective upon
one hundred and eighty (180) days written notice to the other party of its cancellation of the Tax
& Accounting Services.

               (b) Right to Review. RVI shall provide DSW with (i) any Income Tax Return to be
prepared by RVI for DSW pursuant to the Tax & Accounting Services at least twenty (20) days prior
to the due date of such Tax Return or as is otherwise consistent with past practice and (ii) any
Non-Income Tax Return to be prepared by RVI for DSW pursuant to the Tax & Accounting Services at
least four (4) days prior to the due date of such Tax Return or as is otherwise consistent with
past practice. DSW shall have the right to comment on any such Tax Return and RVI shall reasonably
consider all comments made by DSW.

               (c) Information. DSW shall timely provide all information reasonably requested by
RVI to prepare all Tax Returns, compute all estimated Tax payments (for purposes of Section 7.01 of
this Agreement) and perform the Tax & Accounting Services, and all such information shall be
provided in a manner reasonably requested by RVI. RVI shall provide DSW with all Tax Returns
prepared for DSW pursuant to the Tax & Accounting Services and copies of any notices or
communications from any Taxing Authority relating to any Tax or Tax Return of DSW or any DSW
Affiliate covered by the Tax & Accounting Services. DSW shall execute and deliver to RVI a power
of attorney authorizing the appropriate RVI employees to sign as “paid preparer” any Tax Return
prepared by RVI for DSW pursuant to the Tax & Accounting Services.

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Section 3. Liability for Taxes.

     3.01. DSW’s Liability for Taxes. DSW and each DSW Affiliate shall be jointly and
severally liable for the following Taxes, and shall be entitled to receive and retain all refunds
of Taxes previously incurred by DSW, any DSW Affiliate, or the DSW Business with respect to such
Taxes:

               (a) all Taxes with respect to Tax Returns described in Section 2.01(a) of this Agreement to
the extent that such Taxes are related to (i) the DSW Separate Tax Liability or (ii) the DSW
Business, for any taxable period;

               (b) all Taxes with respect to Tax Returns described in Section 2.01(c) of this Agreement;

               (c) all Taxes with respect to Tax Returns described in Section 2.02 of this Agreement;

               (d) all Taxes imposed by any Taxing Authority with respect to the DSW Business, DSW or any
DSW Affiliate (other than in connection with the required filing of a Tax Return described in
Sections 2.01(a), 2.01(c) or 2.02 of this Agreement) for any taxable period; and

               (e) all franchise or property Taxes imposed by any Taxing Authority determined in whole or in
part by reference to the value of DSW or the assets of DSW or any DSW Affiliate for any taxable
period (or portion thereof) ending on or before December 31, 2006, but only to the extent that such
value is determined by such Taxing Authority to be greater than the amount reported on the last
applicable Tax Return filed before the IPO Date.

     3.02. RVI’s Liability for Taxes. RVI shall be liable for the following Taxes, and
shall be entitled to receive and retain all refunds of Taxes previously incurred by RVI, any RVI
Affiliate, or the RVI Business with respect to such Taxes:

               (a) except as provided in Section 3.01(a) of this Agreement, all Taxes with respect to Tax
Returns described in Section 2.01(a) of this Agreement for any taxable period;

               (b) all Taxes with respect to Tax Returns described in Sections 2.01(b) or 2.01(d) of this
Agreement; and

               (c) all Taxes imposed by any Taxing Authority with respect to RVI, any RVI Affiliate, or the
RVI Business (other than in connection with the required filing of a Tax Return described in
Sections 2.01(a), 2.01(b), or 2.01(d) of this Agreement) for any taxable period.

     3.03. Taxes, Refunds and Credits. Notwithstanding Sections 3.01 and 3.02 of this
Agreement, (i) RVI shall be liable for all Taxes incurred by any Subsidiary with respect to the RVI
Business for all periods and shall be entitled to all refunds and credits of Taxes previously

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incurred by any person with respect to such Taxes, and (ii) DSW and each DSW Affiliate shall be
jointly and severally liable for all Taxes incurred by any RVI Subsidiary with respect to the DSW
Business for all periods and shall be entitled to all refunds and credits of Taxes previously
incurred by any person with respect to such Taxes. Nothing in this Agreement shall be construed as
to require compensation, by payment, credit, offset or otherwise, by RVI (or any RVI Affiliate) to
DSW (or any DSW Affiliate) for any loss, deduction, credit or other Tax attribute arising in
connection with, or related to, DSW, any DSW Affiliate, or the DSW Business, that is shown on, or
otherwise reflected with respect to, any Tax Return described in Section 2.01 of this Agreement.
Notwithstanding anything to the contrary in this Agreement, any Taxes incurred by RVI or RVI
Affiliates with respect to the receipt by RVI or RVI Affiliates of some or all of the proceeds
derived from the IPO shall be solely the responsibility of RVI. Notwithstanding anything to the
contrary in this Agreement (other than Section 4 of this Agreement), DSW shall not be liable for,
and shall have no obligation under this Agreement in respect of, any Taxes (other than Distribution
Taxes pursuant to Section 4 of this Agreement) arising out of or relating to the exercise by any
person of any warrant, option, exchange right, conversion right or similar arrangement contemplated
by the letter of intent (and the accompanying term sheet), dated as of March 10, 2005, by and among
RVI, each of its Subsidiaries, and Cerberus Partners, L.P.

     3.04. Payment of Tax Liability. If one party is liable or responsible for Taxes, under
Sections 3.01 through 3.03 of this Agreement, with respect to Tax Returns for which another party
is responsible for filing, or with respect to Taxes that are paid by another party, then the liable
or responsible party shall pay the Taxes (or a reimbursement of such Taxes) to the other party
pursuant to Section 7.05 of this Agreement.

     3.05. Computation. RVI shall provide DSW with a written calculation in reasonable detail
(including copies of all work sheets and other materials used in preparation thereof) setting forth
the amount of any DSW Separate Tax Liability or estimated DSW Separate Tax Liability (for purposes
of Section 7.01 of this Agreement) and any Taxes related to the DSW Business. DSW shall have the
right to review and comment on such calculation. Any dispute with respect to such calculation
shall be resolved pursuant to Section 10.03 of this Agreement; provided, however,
that, notwithstanding any dispute with respect to any such calculation, in no event shall any
payment attributable to the amount of any DSW Separate Tax Liability or estimated DSW Separate Tax
Liability be paid later than the date provided in Section 7 of this Agreement.

Section 4. Distribution Taxes and Deconsolidation.

     4.01. Distribution Taxes. Although neither party has any plan or intent to effectuate
a Distribution, the parties have set forth how certain Tax matters with respect to a Distribution
would be handled in the event that, as a result of changed circumstances, a Distribution is pursued
at some future time.

               (a) RVI’s Liability for Distribution Taxes. In the event of a Distribution,
notwithstanding Sections 3.01 through 3.03 of this Agreement, RVI and each RVI Affiliate shall be
jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes
are attributable to, caused by, or result from, one or more of the following:

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                    (i) any action or omission by RVI (or any RVI Affiliate) inconsistent with any material,
information, covenant or representation related to RVI, any RVI Affiliate, or the RVI Business in
an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental
Ruling Documents, Ruling, or Supplemental Ruling (for the avoidance of doubt, disclosure of any
action or fact that is inconsistent with any material, information, covenant or representation
submitted to Tax Counsel, the IRS, or other Taxing Authority, as applicable, in connection with an
Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling
Documents, Ruling, or Supplemental Ruling shall not relieve RVI (or any RVI Affiliate) of liability
under this Agreement);

                    (ii) any action or omission by RVI (or any RVI Affiliate), including a cessation, transfer to
affiliates, or disposition of its active trades or businesses, or an issuance of stock, stock
buyback or payment of an extraordinary dividend by RVI (or any RVI Affiliate) following a
Distribution;

                    (iii) any acquisition of any stock or assets of RVI (or any RVI Affiliate) by one or more
other persons (other than DSW or a DSW Affiliate) prior to or following a Distribution; or

                    (iv) any issuance of stock by RVI (or any RVI Affiliate), or change in ownership of stock in
RVI (or any RVI Affiliate).

               (b) DSW’s Liability for Distribution Taxes. In the event of a Distribution,
notwithstanding Sections 3.01 through 3.03 of this Agreement, DSW and each DSW Affiliate shall be
jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes
are attributable to, caused by, or result from, one or more of the following:

                    (i) any action or omission by DSW (or any DSW Affiliate) after a Distribution at any time,
that is inconsistent with any written representations of an officer of DSW pursuant to Section
4.04(f) of this Agreement with respect to any material, information, covenant or representation
related to DSW, any DSW Affiliate, or the DSW Business in an Officer’s Certificate, Tax Opinion,
Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental
Ruling (for the avoidance of doubt, disclosure by DSW (or any DSW Affiliate) to RVI (or any RVI
Affiliate) of any action or fact that is inconsistent with any material, information, covenant or
representation submitted to Tax Counsel, the IRS, or other Taxing Authority, as applicable, in
connection with an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling shall not relieve DSW (or any DSW
Affiliate) of liability under this Agreement);

                    (ii) any action or omission by DSW (or any DSW Affiliate) after the date of a Distribution
(including any act or omission that is in furtherance of, connected to, or part of a plan or series
of related transactions (within the meaning of section 355(e) of the Code) occurring on or prior to
the date of a Distribution) including a cessation, transfer to affiliates or

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disposition of the active trades or businesses of DSW (or any DSW Affiliate), stock buyback or
payment of an extraordinary dividend;

                    (iii) any acquisition of any stock or assets of DSW (or any DSW Affiliate) by one or more
other persons (other than RVI or any RVI Affiliate) prior to or following a Distribution; or

                    (iv) any issuance of stock by DSW (or any DSW Affiliate) after a Distribution, including any
issuance pursuant to the exercise of employee stock options or other employment related
arrangements or the exercise of warrants, or change in ownership of stock in DSW (or any DSW
Affiliate) after a Distribution.

               (c) Joint Liability for Remaining Distribution Taxes. RVI shall be liable for a
percentage of any Distribution Taxes (not otherwise allocated by Sections 4.01(a) or (b)) equal to
the quotient of (i) RVI’s Market Valuation, divided by (ii) the sum of (x) RVI’s Market Valuation,
and (y) DSW’s Market Valuation. DSW and each DSW Affiliate shall be jointly and severally liable
for a percentage of any Distribution Taxes (not otherwise allocated by Sections 4.01(a) or (b))
equal to the quotient of (i) DSW’s Market Valuation, divided by (ii) the sum of (x) RVI’s Market
Valuation, and (y) DSW’s Market Valuation.

     4.02. Carrybacks.

               (a) In General. RVI agrees to pay to DSW the United States federal income Tax
Benefit from the use in any Pre-IPO Period (the “Carryback Period”) of a carryback of any Tax Asset
of the DSW Group from a Post-IPO Period (other than a carryback of any Tax Asset attributable to
Distribution Taxes for which the liability is borne by RVI or any RVI Affiliate). If subsequent to
the payment by RVI to DSW of the United States federal income Tax Benefit of a carryback of a Tax
Asset of the DSW Group, there shall be a Final Determination which results in a (1) change to the
amount of the Tax Asset so carried back or (2) change to the amount of such United States federal
income Tax Benefit, DSW shall repay to RVI, or RVI shall repay to DSW, as the case may be, any
amount which would not have been payable to such other party pursuant to this Section 4.02(a) had
the amount of the benefit been determined in light of these events. Nothing in this Section
4.02(a) shall require RVI to file an amended Tax Return or claim for refund of United States
federal Income Taxes; provided, however, that RVI shall use its reasonable efforts
to use any carryback of a Tax Asset of the DSW Group that is carried back under this Section
4.02(a).

               (b) Net Operating Losses. Notwithstanding any other provision of this Agreement, DSW
hereby expressly agrees to elect (under section 172(b)(3) of the Code and, to the extent feasible,
any similar provision of any state, local or foreign Tax law) to relinquish any right to carryback
net operating losses to any Pre-IPO Periods of RVI (in which event no payment shall be due from RVI
to DSW in respect of such net operating losses).

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     4.03.
Allocation of Tax Items. All Tax computations for (1) any Pre-IPO Periods
ending on the IPO Date and (2) the immediately following taxable
period of DSW or any DSW Affiliate, shall be made pursuant to the
principles of section 1.1502-76(b) of the Treasury
Regulations or of a corresponding provision under the laws of other jurisdictions, as reasonably
determined by RVI, taking into account all reasonable suggestions made by DSW with respect thereto.

     4.04. Continuing Covenants.

               (a) In General. Each of RVI (for itself and each RVI Affiliate) and DSW (for itself
and each DSW Affiliate) agrees (1) not to take any action reasonably expected to result in an
increased Tax liability to the other, a reduction in a Tax Asset of the other or an increased
liability to the other under this Agreement, and (2) to take any action reasonably requested by the
other that would reasonably be expected to result in a Tax Benefit or avoid a Tax Detriment to the
other, provided, in either such case, that the taking or refraining to take such action does not
result in any additional cost not fully compensated for by the other party or any other adverse
effect to such party. The parties hereby acknowledge that the preceding sentence is not intended
to limit, and therefore shall not apply to, the rights of the parties with respect to matters
otherwise covered by this Agreement.

               (b) DSW Restrictions. DSW agrees that, until such time as the stock of DSW owned by
RVI and RVI Affiliates constitutes fifty percent (50%) or less of the total combined voting power
of all of the outstanding stock of DSW, DSW (1) will not knowingly take or fail to take, or permit
any DSW Affiliate to knowingly take or fail to take, any action that could reasonably be expected
to preclude RVI’s ability to effectuate a Distribution, and (2) will not issue any stock of DSW (or
any instrument that is convertible, exercisable or exchangeable into any such stock) in an
acquisition or public or private offering if, immediately after such issuance, RVI would, or would
reasonably be expected to, not own stock of DSW that, on a fully diluted basis, constitutes
“control” (within the meaning of section 368(c) of the Code) of DSW. In the event of a
Distribution, DSW agrees that (1) it will take, or cause any DSW Affiliate to take, any action
reasonably requested by RVI in order to enable RVI to effectuate a Distribution (including any
internal restructuring necessary to satisfy the active trade or business requirement of section
355(b) of the Code) and (2) it will not take or fail to take, or permit any DSW Affiliate to take
or fail to take, any action where such action or failure to act would be inconsistent with any
written representations of an officer of DSW pursuant to Section 4.04(f) of this Agreement with
respect to any material, information, covenant or representation that relates to facts or matters
related to DSW, any DSW Affiliate, or the DSW Business in an Officer’s Certificate, Tax Opinion,
Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental
Ruling (except where such material, information, covenant or representation was not previously
disclosed to DSW) other than as permitted by Section 4.04(d) of this Agreement. For this purpose
an action is considered inconsistent with a representation if the representation states that there
is no plan or intention to take such action. In the event of a Distribution, DSW agrees that it
will not take (and it will cause the DSW Affiliates to refrain from taking) any position on a Tax
Return that is inconsistent with the treatment of a Distribution as tax-free transactions under
section 355 of the Code.

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               (c) RVI Restrictions. In the event of a Distribution, RVI agrees that it will not
take or fail to take, or permit any RVI Affiliate to take or fail to take, any action where such
action or failure to act would be inconsistent with any material, information, covenant or
representation that relates to facts or matters related to RVI (or any RVI Affiliate) or within the
control of RVI and is contained in an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion,
Ruling Documents, Supplemental Ruling Documents, Ruling, or Supplemental Ruling. For this purpose
an action is considered inconsistent with a representation if the representation states that there
is no plan or intention to take such action. In the event of a Distribution, RVI agrees that it
will not take (and it will cause the RVI Affiliates to refrain from taking) any position on a Tax
Return that is inconsistent with the treatment of a Distribution as tax-free transactions under
section 355 of the Code.

               (d) Certain DSW Actions Following a Distribution. In the event of a Distribution,
DSW agrees that, during the two (2) year period following a Distribution, without first obtaining,
at DSW’s own expense, either a supplemental opinion from Tax Counsel that such action will not
result in Distribution Taxes (a “Supplemental Tax Opinion”) or a Supplemental Ruling that such
action will not result in Distribution Taxes, unless in any such case RVI and DSW agree otherwise,
DSW shall not (1) sell all or substantially all of the assets of DSW or any DSW Affiliate, (2)
merge DSW, or any DSW Affiliate with another entity, without regard to which party is the surviving
entity, (3) transfer any assets of DSW in a transaction described in section 351 (other than a
transfer to a corporation which files a Consolidated Return with DSW and which is wholly-owned,
directly or indirectly, by DSW) or subparagraph (C) or (D) of section 368(a)(1) of the Code, (4)
issue stock of DSW or any DSW Affiliate (or any instrument that is convertible or exchangeable into
any such stock) in an acquisition or public or private offering, or (5) facilitate or otherwise
participate in any acquisition of stock in DSW that would result in any shareholder owning five
percent (5%) or more of the outstanding stock of DSW. DSW (or any DSW Affiliate) shall only
undertake any of such actions after RVI’s receipt of such Supplemental Tax Opinion or Supplemental
Ruling and pursuant to the terms and conditions of any such Supplemental Tax Opinion or
Supplemental Ruling or as otherwise consented to in writing in advance by RVI. The parties hereby
agree that they will act in good faith to take all reasonable steps necessary to amend this Section
4.04(d), from time to time, by mutual agreement, to (i) add certain actions to the list contained
herein, or (ii) remove certain actions from the list contained herein, in either case, in order to
reflect any relevant change in law, regulation or administrative interpretation occurring after the
date of this Agreement.

               (e) Notice of Specified Transactions. Not later than thirty (30) days prior to
entering into any oral or written contract or agreement, and not later than five (5) days after it
first becomes aware of any negotiations, plan or intention (regardless of whether it is a party to
such negotiations, plan or intention), regarding any of the transactions described in Section
4.04(d) of this Agreement, DSW shall provide written notice of its intent to consummate such
transaction or the negotiations, plan or intention of which it becomes aware, as the case may be,
to RVI.

               (f) DSW Cooperation. DSW agrees that, at the request of RVI, DSW shall cooperate
fully with RVI to take any action necessary or reasonably helpful to effectuate a

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Distribution, including seeking to obtain, as expeditiously as possible, a Tax Opinion,
Supplemental Tax Opinion, Ruling, and/or Supplemental Ruling. Such cooperation shall include the
execution of any documents that may be necessary or reasonably helpful in connection with obtaining
any Tax Opinion, Supplemental Tax Opinion, Ruling, and/or Supplemental Ruling (including any (i)
power of attorney, (ii) Officer’s Certificate, (iii) Ruling Documents, (iv) Supplemental Rulings
Documents, and/or (v) reasonably requested written representations confirming that (a) DSW has read
the Officer’s Certificate, Ruling Documents, and/or Supplemental Ruling Documents and (b) all
information and representations, if any, relating to DSW (or any DSW Affiliate) contained in the
Officer’s Certificate, Ruling Documents, and/or Supplemental Ruling Documents are true, correct and
complete in all material respects).

     4.05. Allocation of Tax Assets. RVI shall advise DSW in writing within ninety (90)
days after the filing of the Consolidated Return for the taxable year that includes the IPO Date of
the allocation of any Tax Assets among RVI, each RVI Affiliate, DSW, and each DSW Affiliate. The
parties hereby agree that, for purposes of determining such allocation, RVI shall be free to use
any legally permissible method of allocation reasonably determined by RVI in its sole discretion.
The parties hereby agree that in the absence of controlling legal authority or unless otherwise
provided under this Agreement, Tax Assets shall be allocated in a manner reasonably determined by
RVI in its sole discretion.

Section 5. Employee Taxes.

     5.01. In General. DSW and each DSW Affiliate shall be jointly and severally liable
for any and all Employment Taxes allocable pursuant to this Section 5 to DSW or any of DSW
Affiliate, and RVI and each RVI Affiliate shall be jointly and severally liable for any and all
Employment Taxes allocable pursuant to this Section 5 to RVI or any of RVI Affiliate. Except as
otherwise provided in Sections 5.02 or 5.03 of this Agreement, (i) any and all Employment Taxes
attributable to any employee identified as an employee of DSW or any DSW Affiliate on the
applicable Tax Return in connection with state unemployment taxes as filed shall be allocated to
DSW, and (ii) any and all Employment Taxes attributable to any employee identified as an employee
of RVI or any RVI Affiliate on the applicable Tax Return in connection with state unemployment
taxes as filed shall be allocated to DSW.

     5.02. Concurrent Employees. For periods after January 29, 2005, any and all
Employment Taxes attributable to any employee that provides concurrent services to a member of the
RVI Group and a member of the DSW Group shall be allocated between the RVI Group and the DSW Group
in the same manner as employee costs for the applicable period are allocated pursuant to the terms
of the Shared Services Agreement. Except as otherwise provided in Section 5.03 of this Agreement,
for periods prior to January 30, 2005, any and all Employment Taxes attributable to any employee
that provided concurrent services to a member of the RVI Group and a member of the DSW Group shall
be allocated between the RVI Group and the DSW Group in a manner consistent with the corporate
allocation model utilized by RVI for the applicable period.

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     5.03. Leased Employees. For periods prior to January 1, 2004, any and all Employment
Taxes attributable to any employee leased from Value City Department Store Services, Inc. shall be
allocated to company that leased such employee; provided, however, that, if such
employee provided concurrent services to a member of the RVI Group and a member of the DSW Group,
Employment Taxes attributable to such employee shall be borne fifty percent (50%) by the RVI Group
and fifty percent (50%) by the DSW Group.

Section 6. Indemnification.

     6.01. In General. RVI and each member of the RVI Group shall jointly and severally
indemnify DSW, each DSW Affiliate, and their respective directors, officers and employees, and hold
them harmless from and against any and all Taxes for which RVI or any RVI Affiliate is liable under
this Agreement and any loss, cost, damage or expense, including reasonable attorneys’ fees and
costs, that is attributable to, or results from, the failure of RVI, any RVI Affiliate or any
director, officer or employee to make any payment required to be made under this Agreement. DSW
and each member of the DSW Group shall jointly and severally indemnify RVI, each RVI Affiliate, and
their respective directors, officers and employees, and hold them harmless from and against any and
all Taxes for which DSW or any DSW Affiliate is liable under this Agreement and any loss, cost,
damage or expense, including reasonable attorneys’ fees and costs, that is attributable to, or
results from, the failure of DSW, any DSW Affiliate or any director, officer or employee to make
any payment required to be made under this Agreement.

     6.02. Inaccurate or Incomplete Information. RVI and each member of the RVI Group
shall jointly and severally indemnify DSW, each DSW Affiliate, and their respective directors,
officers and employees, and hold them harmless from and against any cost, fine, penalty, or other
expense of any kind attributable to the failure of RVI or any RVI Affiliate in supplying DSW or any
DSW Affiliate with inaccurate or incomplete information, in connection with the preparation of any
Tax Return. DSW and each member of the DSW Group shall jointly and severally indemnify RVI, each
RVI Affiliate, and their respective directors, officers and employees, and hold them harmless from
and against any cost, fine, penalty, or other expenses of any kind attributable to the failure of
DSW or any DSW Affiliate in supplying RVI or any RVI Affiliate with inaccurate or incomplete
information, in connection with the preparation of any Tax Return.

     6.03. No Indemnification for Tax Items. Nothing in this Agreement shall be construed
as a guarantee of the existence or amount of any loss, credit, carryforward, basis or other Tax
Item, whether past, present or future, of RVI, any RVI Affiliate, DSW or any DSW Affiliate. In
addition, for the avoidance of doubt, for purposes of determining any amount owed between the
parties hereto, all such determinations shall be made without regard to any financial accounting
tax asset or liability or other financial accounting items.

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Section 7. Payments.

     7.01. Estimated Tax Payments. Not later than ten (10) business days prior to each
Estimated Tax Installment Date with respect to a taxable period for
which a Consolidated Return or a Combined Return will be filed, DSW shall
pay to RVI on behalf of the DSW Group an amount
equal to the amount of any estimated DSW Separate Tax Liability that DSW otherwise would have been
required to pay to a Taxing Authority on such Estimated Tax Installment Date.

     7.02. True-Up Payments. Not later than ten (10) business days after completion of a
Tax Return, DSW shall pay to RVI, or RVI shall pay to DSW, as appropriate, an amount equal to the
difference, if any, between the DSW Separate Tax Liability and the aggregate amount paid by DSW
with respect to such period under Section 7.01 of this Agreement.

     7.03. Redetermination Amounts. In the event of a redetermination of any Tax Item
reflected on any Consolidated Return or Combined Return (other than Tax Items relating to
Distribution Taxes), as a result of a refund of Taxes paid, a Final Determination or any settlement
or compromise with any Taxing Authority which in any such case would affect the DSW Separate Tax
Liability, RVI shall prepare a revised pro forma Tax Return in accordance with Section 2.04(b) of
this Agreement for the relevant taxable period reflecting the redetermination of such Tax Item as a
result of such refund, Final Determination, settlement or compromise. DSW shall pay to RVI, or RVI
shall pay to DSW, as appropriate, an amount equal to the difference, if any, between the DSW
Separate Tax liability reflected on such revised pro forma Tax Return and the DSW Separate Tax
liability for such period as originally computed pursuant to this Agreement.

     7.04. Payments of Refunds and Credits. If one party receives a refund or credit of
any Tax to which the other party is entitled pursuant to Section 3.03 of this Agreement, the party
receiving such refund or credit shall pay to the other party the amount of such refund or credit
pursuant to Section 7.05 of this Agreement.

     7.05. Payments Under This Agreement. In the event that one party (the “Owing Party”)
is required to make a payment to another party (the “Owed Party”) pursuant to this Agreement, then
such payments shall be made according to this Section 7.05.

               (a) In General. All payments shall be made to the Owed Party or to the appropriate
Taxing Authority as specified by the Owed Party within the time prescribed for payment in this
Agreement, or if no period is prescribed, within ten (10) days after delivery of written notice of
payment owing together with a computation of the amounts due.

               (b) Treatment of Payments. Unless otherwise required by any Final Determination, the
parties agree that any payments made by one party to another party pursuant to this Agreement
(other than (i) payments for Tax Services pursuant to Section 2.05 of this Agreement, (ii) payments
for the DSW Separate Tax Liability for any Post-IPO Period, (iii) payments of interest pursuant to
Section 7.05(e) of this Agreement, and (iv) payments of After Tax Amounts pursuant to Section
7.05(d) of this Agreement) shall be treated for all Tax and financial accounting purposes as
nontaxable payments (dividend distributions or capital contributions, as the case may be) made
immediately prior to the IPO and, accordingly, as not includible in the taxable income of the
recipient or as deductible by the payor.

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               (c) Prompt Performance. All actions required to be taken (including payments) by any
party under this Agreement shall be performed within the time prescribed for performance in this
Agreement, or if no period is prescribed, such actions shall be performed promptly.

               (d) After Tax Amounts. If pursuant to a Final Determination it is determined that
the receipt or accrual of any payment made under this Agreement (other than (i) payments for Tax &
Accounting Services pursuant to Section 2.05 of this Agreement, and (ii) payments of interest
pursuant to Section 7.05(e) of this Agreement) is subject to any Tax, the party making such payment
shall be liable for (a) the After Tax Amount with respect to such payment and (b) interest at the
rate described in Section 7.05(e) of this Agreement on the amount of such Tax from the date such
Tax accrues through the date of payment of such After Tax Amount. A party making a demand for a
payment pursuant to this Agreement and for a payment of an After Tax Amount with respect to such
payment shall separately specify and compute such After Tax Amount. However, a party may choose
not to specify an After Tax Amount in a demand for payment pursuant to this Agreement without
thereby being deemed to have waived its right subsequently to demand an After Tax Amount with
respect to such payment. The amount that DSW shall be liable for any and all payments for the DSW
Separate Tax Liability for any Post-IPO Period shall be increased by the After Tax Amount with
respect to such payment and decreased by the corresponding Tax Benefit, if any, to RVI attributable
to such DSW Separate Tax Liability.

               (e) Interest. Payments pursuant to this Agreement that are not made within the
period prescribed in this Agreement (the “Payment Period”) shall bear interest for the period from
and including the date immediately following the last date of the Payment Period through and
including the date of payment at a per annum rate equal to the prime rate as published in The Wall
Street Journal on the last day of such Payment Period, plus five percent (5%). Such interest will
be payable at the same time as the payment to which it relates and shall be calculated on the basis
of a year of three hundred sixty-five (365) days and the actual number of days for which due.

Section 8. Tax Proceedings.

     8.01. In General. Except as otherwise provided in this Agreement, (i) with respect to
Tax Returns described in Sections 2.01(a), 2.01(b), or 2.01(d) of this Agreement, RVI and (ii) with
respect to Tax Returns described in Sections 2.01(c) or 2.02 of this Agreement, DSW (in either
case, the “Controlling Party”), shall have the exclusive right, in its sole discretion, to control,
contest, and represent the interests of RVI, any RVI Affiliate, DSW, and/or any DSW Affiliate in
any Audit relating to such Tax Return and to resolve, settle or agree to any deficiency, claim or
adjustment proposed, asserted or assessed in connection with or as a result of any such Audit. The
Controlling Party’s rights shall extend to any matter pertaining to the management and control of
an Audit, including execution of waivers, choice of forum, scheduling of conferences and the
resolution of any Tax Item. Any costs incurred in handling, settling, or contesting an Audit shall
be borne by the Controlling Party.

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     8.02. Participation of non-Controlling Party. Except as otherwise provided in Section
8.04 of this Agreement, the non-Controlling Party shall, at its own expense, have control over
decisions to resolve, settle or otherwise agree to any deficiency, claim or adjustment with respect
to any Sole Responsibility Item. Except as otherwise provided in Section 8.04 of this Agreement,
the Controlling Party, at its own expense, and the non-Controlling Party, at its own expense, shall
have joint control over decisions to resolve, settle or otherwise agree to any deficiency, claim or
adjustment with respect to any Joint Responsibility Item. Except as otherwise provided in Section
8.04 of this Agreement, the Controlling Party shall not settle any Audit it controls concerning a
Tax Item on a basis that would reasonably be expected to adversely affect the non-Controlling Party
by at least one hundred and fifty thousand dollars ($150,000) without obtaining such
non-Controlling Party’s consent, which consent shall not be unreasonably withheld, conditioned or
delayed if failure to consent would adversely affect the Controlling Party.

     8.03. Notice. Within ten (10) days after a party becomes aware of the
existence of a Tax issue that may give rise to an indemnification obligation under this Agreement,
such party shall give notice to the other party of such issue (such notice shall contain factual
information, to the extent known, describing any asserted tax liability in reasonable detail), and
shall forward to the other party copies of all notices and material communications with any Taxing
Authority relating to such issue. Notwithstanding any provision in Section 10.15 of this Agreement
to the contrary, if a party to this Agreement fails to provide the other party notice as required
by this Section 8.03, and the failure results in a detriment to the other party then any amount
which the other party is otherwise required to pay pursuant to this Agreement shall be reduced by
the amount of such detriment.

     8.04. Control of Distribution Tax Proceedings. In the event of a Distribution, RVI
shall have the exclusive right, in its sole discretion, to control, contest, and represent the
interests of RVI, any RVI Affiliate, DSW, and/or any DSW Affiliate in any Audits relating to
Distribution Taxes and to resolve, settle or agree to any deficiency, claim or adjustment proposed,
asserted or assessed in connection with or as a result of any such Audit; provided,
however, that RVI shall not settle any such audit with respect to Distribution Taxes with a
Taxing Authority in exchange for a settlement on an issue or issues unrelated to such Distribution
Taxes that would reasonably be expected to result in a material Tax cost to DSW or any DSW
Affiliate (including as a result of an indemnification obligation pursuant to this Agreement),
without the prior consent of DSW, which consent shall not be unreasonably withheld, conditioned or
delayed. RVI’s rights shall extend to any matter pertaining to the management and control of such
Audit, including execution of waivers, choice of forum, scheduling of conferences and the
resolution of any Tax Item; provided, however, that to the extent that DSW is
obligated to bear at least fifty percent (50%) of the liability for any Distribution Taxes under
Section 4.01 of this Agreement, RVI and DSW shall have joint control over decisions to resolve,
settle or otherwise agree to any deficiency, claim or adjustment. DSW may assume sole control of
any Audits relating to Distribution Taxes if it acknowledges in writing that it has sole liability
for any Distribution Taxes under Section 4.01(b) of this Agreement that might arise in such Audit
and can demonstrate to the reasonable satisfaction of RVI that it can satisfy its liability for any
such Distribution Taxes. If DSW is unable to demonstrate to the reasonable satisfaction of RVI
that it will be able to satisfy

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its liability for such Distribution Taxes, but acknowledges in writing that it has sole
liability for any Distribution Taxes under Section 4.01(b) of this Agreement, DSW and RVI shall
have joint control over the Audit.

Section 9. Stock Options and Restricted Stock.

     9.01. In General. The parties hereto agree that RVI shall be entitled to any Tax
Benefit arising by reason of exercises of Options to purchase shares of RVI stock, and that DSW
shall be entitled to any Tax Benefit arising by reason of exercises of Options to purchase shares
of DSW stock. In addition, RVI shall be entitled to any Tax Benefit arising by reason of the lapse
of any restrictions with respect to shares of RVI stock subject to a substantial risk of forfeiture
(within the meaning of section 83 of the Code), and DSW shall be entitled to any Tax Benefit
arising by reason of the lapse of any restrictions with respect to shares of DSW stock subject to a
substantial risk of forfeiture (within the meaning of section 83 of the Code). The parties hereto
agree to report all Tax deductions with respect to Options and other equity issued to their
employees consistently with this Section 9.01, to the extent permitted by the Tax law.

     9.02. Notices, Withholding, Reporting. RVI shall promptly notify DSW of any post-IPO
Date event giving rise to income to any DSW Group employees or former employees in connection with
exercises of Options to purchase shares of RVI stock or the lapse of any restrictions with respect
to shares of RVI stock subject to a substantial risk of forfeiture (within the meaning of section
83 of the Code). If required by the Tax law, DSW shall withhold applicable Taxes and satisfy
applicable Tax reporting obligations in connection therewith.

     9.03. Adjustments. If DSW or any DSW Affiliate as a result of a Final Determination
or any settlement or compromise with any Taxing Authority receives any Tax Benefit to which RVI is
entitled under Section 9.01 of this Agreement, DSW shall pay the amount of such Tax Benefit to RVI.
If RVI or any RVI Affiliate as a result of a Final Determination or any settlement or compromise
with any Taxing Authority receives any Tax Benefit to which DSW is entitled under Section 9.01 of
this Agreement, RVI shall pay the amount of such Tax Benefit to DSW.

Section 10. Miscellaneous Provisions.

     10.01. Effectiveness. This Agreement shall become effective upon execution by the
parties hereto.

     10.02. Cooperation and Exchange of Information.

               (a) Cooperation. DSW and RVI shall each cooperate fully (and each shall cause its
respective affiliates to cooperate fully) with all reasonable requests from another party for
information and materials not otherwise available to the requesting party in connection with the
preparation and filing of Tax Returns, claims for refund, and Audits concerning issues or other
matters covered by this Agreement or in connection with the determination of a liability for Taxes
or a right to a refund of Taxes. Such cooperation shall include:

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                    (i) the retention until the expiration of the applicable statute of limitations, and the
provision upon reasonable request, of copies of all Tax Returns, books, records (including
information regarding ownership and Tax basis of property), documentation and other information
relating to the Tax Returns, including accompanying schedules, related work papers, and documents
relating to rulings or other determinations by Taxing Authorities;

                    (ii) the execution of any document that may be necessary or reasonably helpful in connection
with any Tax Proceeding, or the filing of a Tax Return or refund claim by a member of the RVI Group
or the DSW Group, including certification, to the best of a party’s knowledge, of the accuracy and
completeness of the information it has supplied; and

                    (iii) the use of the party’s reasonable best efforts to obtain any documentation that may be
necessary or reasonably helpful in connection with any of the foregoing. Each party shall make its
employees and facilities available on a reasonable and mutually convenient basis in connection with
the foregoing matters.

               (b) Retention of Records. Any party that is in possession of documentation of
RVI (or any RVI Affiliate) or DSW (or any DSW Affiliate) relating to the DSW Business, including
books, records, Tax Returns and all supporting schedules and information relating thereto (the “DSW
Business Records”) shall retain such DSW Business Records for a period of seven (7) years following
the IPO Date. Thereafter, any party wishing to dispose of DSW Business Records in its possession
(after the expiration of the applicable statute of limitations), shall provide written notice to
the other party describing the documentation proposed to be destroyed or disposed of sixty (60)
business days prior to taking such action. The other party may arrange to take delivery of any or
all of the documentation described in the notice at its expense during the succeeding sixty (60)
day period.

     10.03. Dispute Resolution. In the event that RVI and DSW disagree as to the amount or
calculation of any payment to be made under this Agreement, or the interpretation or application of
any provision under this Agreement, the parties shall attempt in good faith to resolve such
dispute. If such dispute is not resolved within sixty (60) business days following the
commencement of the dispute, RVI and DSW shall jointly retain an Independent Firm, to resolve the
dispute. The Independent Firm shall act as an arbitrator to resolve all points of disagreement and
its decision shall be final and binding upon all parties involved. Following the decision of the
Independent Firm, RVI and DSW shall each take or cause to be taken any action necessary to
implement the decision of the Independent Firm. The fees and expenses relating to the Independent
Firm shall be borne equally by RVI and DSW, except that if the Independent Firm determines that the
position advanced by either party is frivolous, has not been asserted in good faith or for which
there is not substantial authority, one hundred percent (100%) of the fees and expenses of the
Independent Firm shall be borne by such party. Notwithstanding anything in this Agreement to the
contrary, the dispute resolution provisions set forth in this Section 10.03 shall not be applicable
to any disagreement between the parties relating to Distribution Taxes and any such dispute shall
be settled in a court of law or as otherwise agreed to by the parties.

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     10.04. Notices. All notices and other communications required or permitted to be given
hereunder shall be in writing and shall be deemed given upon (a) a transmitter’s confirmation of a
receipt of a facsimile transmission (but only if followed by confirmed delivery of a standard
overnight courier the following business day or if delivered by hand the following business day),
(b) confirmed delivery of a standard overnight courier or when delivered by hand or (c) the
expiration of five (5) business days after the date mailed by certified or registered mail (return
receipt requested), postage prepaid, to the parties at the following addresses (or at such other
addresses for a party as shall be specified by like notice):

               If to RVI or any RVI Affiliate, to the Vice President of Corporate Tax of RVI, with a copy to
the General Counsel of RVI and the Controller of RVI, at:

Retail Ventures, Inc.

3241 Westerville Road

Columbus, OH 43224

               If to DSW or any DSW Affiliate, to the Chief Financial Officer of DSW, with a copy to the
General Counsel of DSW and the Controller of DSW, at:

DSW, Inc.

4150 East 5th Avenue

Columbus, OH 43219

Either party may, by written notice to the other parties, change the address or the party to which
any notice, request, instruction or other documents is to be delivered.

     10.05. Changes in Law.

               (a) Any reference to a provision of the Code or a law of another jurisdiction shall include a
reference to any applicable successor provision or law.

               (b) If, due to any change in applicable law or regulations or their interpretation by any
court of law or other governing body having jurisdiction subsequent to the date of this Agreement,
performance of any provision of this Agreement or any transaction contemplated thereby shall become
impracticable or impossible, the parties hereto shall use their commercially reasonable efforts to
find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such provision.

     10.06. Confidentiality. Each party shall hold and cause its directors, officers,
employees, advisors and consultants to hold in strict confidence, unless compelled to disclose by
judicial or administrative process or, in the opinion of its counsel, by other requirements of law,
all information (other than any such information relating solely to the business or affairs of such
party) concerning the other parties hereto furnished it by such other party or its representatives
pursuant to this Agreement (except to the extent that such information can be shown to have been
(1) in the public domain through no fault of such party or (2) later lawfully acquired from other
sources not under a duty of confidentiality by the party to which it was furnished), and each

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party shall not release or disclose such information to any other person, except its
directors, officers, employees, auditors, attorneys, financial advisors, bankers and other
consultants who shall be advised of and agree to be bound by the provisions of this Section 10.06.
Each party shall be deemed to have satisfied its obligation to hold confidential information
concerning or supplied by the other party if it exercises the same care as it takes to preserve
confidentiality for its own similar information.

     10.07. Successors. This Agreement shall be binding on and inure to the benefit and
detriment of any successor, by merger, acquisition of assets or otherwise, to any of the parties
hereto, to the same extent as if such successor had been an original party.

     10.08. Affiliates. RVI shall cause to be performed, and hereby guarantees the
performance of, all actions, agreements and obligations set forth herein to be performed by any RVI
Affiliate, and DSW shall cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth herein to be performed by any DSW Affiliate;
provided, however, that (1) if it is contemplated that a DSW Affiliate may cease to
be a DSW Affiliate as a result of a transfer of its stock or other ownership interests to a third
party then (a) DSW shall request in writing no later than thirty (30) days prior to such cessation
that RVI consent (such consent not to be unreasonably withheld, conditioned or delayed) to the
execution of a release of such DSW Affiliate from its obligations under this Agreement effective as
of such transfer provided that DSW shall have confirmed in writing its obligations and the
obligations of its remaining DSW Affiliates with respect to their own obligations and those of the
departing DSW Affiliate and that such departing DSW Affiliate shall have executed a release of any
rights it may have against RVI or any RVI Affiliate by reason of this Agreement, or (b) DSW shall
acknowledge in writing no later than thirty (30) days prior to such cessation that it shall bear
one hundred percent (100%) of the liability for the obligations of DSW and each DSW Affiliate
(including the departing DSW Affiliate) under this Agreement, and (2) if it is contemplated that an
RVI Affiliate may cease to be an RVI Affiliate as a result of a transfer of its stock or other
ownership interests to a third party then (a) RVI shall request in writing no later than thirty
(30) days prior to such cessation that DSW consent (such consent not to be unreasonably withheld,
conditioned or delayed) to the execution of a release of such RVI Affiliate from its obligations
under this Agreement effective as of such transfer provided that RVI shall have confirmed in
writing its obligations and the obligations of its remaining RVI Affiliates with respect to their
own obligations and the obligations of the departing RVI Affiliate and that such departing RVI
Affiliate shall have executed a release of any rights it may have against DSW or any DSW Affiliate
by reason of this Agreement, or (b) RVI shall acknowledge in writing no later than thirty (30) days
prior to such cessation that it shall bear one hundred percent (100%) of the liability for the
obligations of RVI and each RVI Affiliate (including the departing RVI Affiliate) under this
Agreement. If at any time (1) RVI shall, directly or indirectly, obtain beneficial ownership of
more than fifty percent (50%) of the total combined voting power of any other entity, RVI shall
cause such entity to become a party to this Agreement by executing together with DSW an agreement
in substantially the same form as set forth in Schedule 10.08 and such entity shall have all rights
and obligations of an RVI Affiliate under this Agreement, and (2) DSW shall, directly or
indirectly, obtain beneficial ownership of more than fifty percent (50%) of the total combined
voting power of any other entity, DSW shall cause such entity to become a party to this Agreement
by executing together with RVI an agreement in substantially the same

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     form as set forth in Schedule 10.08 and such entity shall have all rights and obligations of
an DSW Affiliate under this Agreement.

     10.09. Authorization, Etc. Each of the parties hereto hereby represents and warrants
that it has the power and authority to execute, deliver and perform this Agreement, that this
Agreement has been duly authorized by all necessary corporate action on the part of such party,
that this Agreement constitutes a legal, valid and binding obligation of each such party and that
the execution, delivery and performance of this Agreement by such party does not contravene or
conflict with any provision of law or of its charter or bylaws or any agreement, instrument or
order binding on such party.

     10.10. Entire Agreement. This Agreement contains the entire agreement among the
parties hereto with respect to the subject matter hereof and supersedes any prior tax sharing
agreements between RVI (or any RVI Affiliate) and DSW (or any DSW Affiliate) and such prior tax
sharing agreements shall have no further force and effect. If, and to the extent, the provisions
of this Agreement conflict with any agreement entered into in connection with the Distribution, the
provisions of this Agreement shall control.

     10.11. Applicable Law; Jurisdiction. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY AND UNCONDITIONALLY (i) AGREES THAT THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND ALL DISPUTES, CONTROVERSIES OR CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
BREACH, TERMINATION OR VALIDITY HEREOF SHALL BE GOVERNED BY THE LAWS OF THE STATE OF OHIO,
EXCLUDING ITS CONFLICTS OF LAW RULES, (ii) AGREES TO BE SUBJECT TO, AND HEREBY CONSENTS AND SUBMITS
TO, THE JURISDICTION OF THE COURTS OF THE STATE OF OHIO AND OF THE FEDERAL COURTS SITTING IN THE
STATE OF OHIO, (iii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE
STATE OF OHIO, HEREBY APPOINTS THE CORPORATION TRUST COMPANY, AS SUCH PARTY’S AGENT IN THE STATE OF
OHIO FOR ACCEPTANCE OF LEGAL PROCESS AND (iv) AGREES THAT SERVICE MADE ON ANY SUCH AGENT SET FORTH
IN (iii) ABOVE SHALL HAVE THE SAME LEGAL FORCE AND EFFECT AS IF SERVED UPON SUCH PARTY PERSONALLY
WITHIN THE STATE OF OHIO.

     10.12. Counterparts. This Agreement 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 Agreement.

     10.13. Severability. If any term, provision, covenant, or restriction of this
Agreement is held by a court of competent jurisdiction (or an arbitrator or arbitration panel) to
be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and
restrictions set forth herein shall remain in full force and effect, and shall in no way be
affected, impaired, or invalidated. In the event that any such term, provision, covenant or
restriction is held to be invalid, void or unenforceable, the parties hereto shall use their best
efforts to find and employ an alternate means to achieve the same or substantially the same result
as that contemplated by such terms, provisions, covenant, or restriction.

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     10.14. No Third Party Beneficiaries. This Agreement is solely for the benefit of RVI,
the RVI Affiliates, DSW and the DSW Affiliates. This Agreement should not be deemed to confer upon
third parties any remedy, claim, liability, reimbursement, cause of action or other rights in
excess of those existing without this Agreement.

     10.15. Waivers, Etc. No failure or delay on the part of a party in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
right or power, preclude any other or further exercise thereof or the exercise of any other right
or power. No modification or waiver of any provision of this Agreement nor consent to any
departure by the parties therefrom shall in any event be effective unless the same shall be in
writing, and then such waiver or consent shall be effective only in the specific instance and for
the purpose for which given.

     10.16. Setoff. All payments to be made by any party under this Agreement may be
netted against payments due to such party under this Agreement, but otherwise shall be made without
setoff, counterclaim or withholding, all of which are hereby expressly waived.

     10.17. Other Remedies. DSW recognizes that any failure by it or any DSW Affiliate to
comply with its obligations under Section 4 of this Agreement would, in the event of a
Distribution, result in Distribution Taxes that would cause irreparable harm to RVI, RVI
Affiliates, and their stockholders. Accordingly, RVI shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement, this being in addition to any other remedy to which RVI is entitled
at law or in equity.

     10.18. Amendment and Modification. This Agreement may be amended, modified or supplemented
only by a written agreement signed by all of the parties hereto.

     10.19. Waiver of Jury Trial. Each of the parties hereto irrevocably and unconditionally
waives all right to trial by jury in any litigation, claim, action, suit, arbitration, inquiry,
proceeding, investigation or counterclaim (whether based in contract, tort or otherwise) arising
out of or relating to this Agreement or the actions of the parties hereto in the negotiation,
administration, performance and enforcement thereof.

     10.20. Interpretations. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
Whenever the words “include,” “includes” or “including” are used in this Agreement they shall be
deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and
“herewith” and words of similar import shall, unless otherwise stated, be construed to refer to
this Agreement as a whole and not to any particular provision of this Agreement, and article,
section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs,
exhibits and schedules of this Agreement unless otherwise specified. The meaning assigned to each
term defined herein shall be equally applicable to both the singular and the plural forms of such
term, and words denoting any gender shall include all genders. Where a word or phrase is defined
herein, each of its other grammatical forms shall have a corresponding meaning. The

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parties have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as
if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this Agreement.

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               IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a
duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	 	RETAIL VENTURES, INC.

on behalf of itself and each of the RVI Affiliates
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 
	 
	 	 	 	 
	 	 	DSW INC.

on behalf of itself and each of the DSW Affiliates
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

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Schedule 10.08

     WHEREAS, [RVI/DSW], an Ohio corporation (“[RVI/DSW]”), owns, directly or indirectly, [all/more
than 50%] of the outstanding stock or interests in the undersigned;

     WHEREAS, the undersigned is not a party to that certain Tax Separation Agreement, dated as of
[DATE], by and among RVI, each RVI Affiliate, DSW and each DSW Affiliate (as defined therein) (the
“Agreement”); and

     WHEREAS, the undersigned, RVI and DSW desire to have the undersigned become a party to the
Agreement and to have all rights and obligations of a party to the Agreement.

     NOW, THEREFORE, in consideration of mutual obligations and undertakings contained in the
Agreement, the parties agree that the undersigned shall become a party to the Agreement and shall
have all rights and obligations of a party to the Agreement.

     IN WITNESS WHEREOF, the parties have executed this agreement on the dates accompanying their
respective signatures, but effective as of ___.

	 	 	 	 	 
	RETAIL VENTURES, INC.	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	Title:
	 	 	 	 
	

	 	 	 	 
	Dated:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	DSW INC.
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	Title:
	 	 	 	 
	

	 	 	 	 
	Dated:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	[NAME]
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	

	 	 	 	 
	Title:
	 	 	 	 
	

	 	 	 	 
	Dated:

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