Document:

EX-10.53.1

 

Exhibit 10.53.1

FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

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

     WHEREAS, the Company and the Executive are parties to that certain Employment Agreement
effective July 13, 2006 (the “Employment Agreement”);

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

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

1. Section 3.01 of the Employment Agreement is hereby amended by replacing “$465,000” in the first
sentence with the following: “$486,000”.

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

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

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

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

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

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

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

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

 

 

10. Section 5.06 of the Employment Agreement is hereby amended by replacing subsection [1] in its
entirety with the following: “[1] Base Salary. For 12 months beginning on the date of Involuntary
Termination Without Cause, the Company will continue to pay the Executive’s Base Salary at the rate
in effect on the effective date of Involuntary Termination Without Cause. If such amount exceeds
two times the annual compensation limit prescribed by Section 401(a)(17) of the Internal Revenue
Code of 1986 (the “Involuntary Termination Limit”), then the Company will pay the severance
obligation described in this Section 5.06[1] in two payment streams. The first payment stream will
be equal to the Involuntary Termination Limit, and the Company will pay this amount in 12 monthly
installments, beginning on the date of Involuntary Termination Without Cause. The amount of the
second payment stream will equal the amount in excess of the Involuntary Termination Limit. The
Company will pay this amount in six monthly installments beginning on the date that is six months
after the date of the Executive’s Involuntary Termination Without Cause. As a condition of this
salary continuation, the Executive is expected to promptly and reasonably pursue new employment.
If during the salary continuation period the Executive becomes employed either as an employee or a
consultant, the Executive’s Base Salary paid by the Company will be reduced by 50% of the Base
Salary amount for the remainder of the salary continuation period. The Executive agrees to
immediately notify the Company of any subsequent employment or consulting work during the period of
salary continuation.”.

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

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

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

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

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Harris Mustafa
 

	 	 
	By: 	/s/ Kathleen C. Maurer
 

	 	 
	HARRIS MUSTAFA

	 	 	 	Kathleen C. Maurer	 	 
	Execution Date:

	 	 	 	DSW Inc.	 	 
	 

	 	 	 	Execution Date:EX-10.57

 

Exhibit 10.57

OCCUPANCY LICENSE AGREEMENT

          This Occupancy License Agreement (this “License Agreement”) is executed effective January 17,
2008 by and among Value City Department Stores LLC, an Ohio limited liability company (“VCDS”),
Retail Ventures Services, Inc., an Ohio corporation (“RVSI”) and DSW Inc., an Ohio corporation
(“DSW”) (collectively, RVSI and DSW shall be referred to herein as “RV”).

Background

          VCDS is currently the tenant under a Lease Agreement between MRSLV Columbus — 3241 L.L.C., a
Delaware limited liability company, as Landlord, and VCDS, as Tenant, dated August 13, 1997 (the
“Master Lease”), with respect to the land and building commonly known as 3241 Westerville Road,
Columbus, Ohio (the “Premises”). The current landlord under the Master Lease is BLDG VC Olive Tree
LLC, a Delaware limited liability company, as successor to MRSLV Columbus — 3241 L.L.C. (“Master
Landlord”).

          VCDS is currently a wholly owned subsidiary of Retail Ventures Inc., the parent corporation of
RVSI. However, on or about the date hereof, Retail Ventures, Inc. intends to sell a controlling
portion of its membership interest in VCDS to VCHI Acquisition Co., a Delaware Corporation (such
sale being referred to herein as the “Transaction”).

          RV and certain of its affiliates and VCDS each currently occupy a portion of the Premises and
share certain expenses associated with such shared occupancy.

          RV and VCDS desire to formalize the existing arrangements with respect to this shared
occupancy of the Premises and to provide for the continued right of RV and its affiliates to occupy
and use a portion of the Premises after the completion of the Transaction.

Agreement

          NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, RV and VCDS agree as follows:

          1. Grant of License. Subject to the terms and conditions hereinafter set forth, VCDS
hereby grants to RV and the affiliates of RV listed in Exhibit A hereto (collectively, the
“RV Affiliates”) (and, subject to the approval of VCDS, other than VCDS, any affiliates of RVSI or
DSW, specifically including Brand Technology Services LLC) (a) an exclusive license to occupy and
use those portions of the Premises as generally depicted on Exhibit B hereto (the
“Exclusive Licensed Area”), which are the portions currently occupied exclusively by RV and such
subsidiaries or affiliates, and (b) a non-exclusive license, in common with VCDS, to occupy and use
all other portions of the Premises currently occupied or utilized by RV (and its affiliates other
than VCDS) on a non-exclusive basis, including but not limited to those areas necessary or
appropriate for access to and the reasonable utilization of the Exclusive Licensed Area (the
“Non-Exclusive Licensed Area” and together with the Exclusive License Area, the “Licensed
Area”). Upon thirty (30) days prior written notice to VCDS, RV may surrender and remise to

 

 

VCDS any portion(s) of the Exclusive Licensed Area effective as of the date set forth in such notice.
Upon such effective date, the Exclusive Licensed Area shall be, for all purposes including rent,
the remaining portion(s) of the prior Exclusive Licensed Area. The licenses granted in this
Section 1 are each (i) a license coupled with an interest, and (ii) irrevocable except in
accordance with the terms of this License Agreement.

          2. Term. The term of this License Agreement and the licenses granted herein shall
commence on the date hereof and shall expire and terminate on such date as is specified in a
written notice of termination from either VCDS or RV to the other party as the “Termination Date”
(such notices being referred to herein as a “Termination Notice”); provided that the Termination
Date shall in no event be earlier than (i) one (1) year following the date the closing of the
Transaction becomes effective, if the Termination Notice is delivered by VCDS, and (ii) ninety (90)
days after the date of delivery of the Termination Notice; provided further, that in no
event shall the Termination Date be later than the Expiration Date of the Master Lease, as such
term is defined therein.

          3. Rent. RVSI shall pay to VCDS rent in the amount of $5,984.00 per month on or
before the first day of each month during the term of the License Agreement, and DSW shall pay to
VCDS rent in the amount of $2,394.00 per month on or before the first day of each month during the
term of the License Agreement, for a total monthly rent of $8,378.00. In the event the first
and/or last month are less than a full month, rent for such partial month shall be prorated. This
paragraph 3 shall survive the Termination Date or earlier termination of this License Agreement.

          4. Utilities. VCDS shall be responsible for securing and paying for all utility
services at the Premises, which shall be of the same quality and capacity as on the effective date
hereof.

          5. Maintenance of Premises. VCDS agrees to keep the Premises in neat and orderly
condition and VCDS will repair promptly at its own expense any damage to the Premises, including
the Licensed Area, unless otherwise provided in this Section 5. RV agrees to keep the Exclusive
Licensed Area in neat and orderly condition and RV will repair promptly at its own expense any
damage caused by RV or RV’s employees or invitees to either the Exclusive Licensed Area or the
Non-Exclusive Licensed Area.

          6. Insurance and Indemnity. RV will secure a policy of commercial liability insurance
coverage with a combined single limit of no less than $10,000,000 per occurrence covering bodily
injury, personal injury and property damage which may be a combination of primary and umbrella
coverages. In addition, RV shall have ‘special form’ property insurance covering all property of
RV in the Premises in an amount equal to the replacement value thereof. Each policy shall name
VCDS as an additional insured. Any such policy notwithstanding, RV hereby indemnifies VCDS and
saves it harmless from and against any and all claims, actions, damages, liability and expense in
connection with loss of life, bodily injury, personal injury and/or damage to property arising from
or out of the occupancy or use by RV of the Licensed Area or any part thereof or any part of the
Premises or occasioned wholly by any act or omission
of RV, its invitees, agents, contractors or employees. All property of RV (or anyone claiming by

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or through RV) in, on or about the Premises shall be kept at the sole risk of RV and RV hereby
releases VCDS from all claims or losses as a result of any damage thereto.

          7. Compliance with Laws and Regulations. RV shall comply with all applicable federal,
state and local statutes, laws, regulations and ordinances related to its business with respect to
the Licensed Area.

          8. Address for Notices and Payments. All notices, approvals, consents and other
correspondence shall be in writing and either hand delivered or sent by Certified U.S. Mail, return
receipt requested, or by reputable overnight delivery services to:

If to VCDS:

Attn: _____________________

Value City Department Stores LLC

3241 Westerville Road

Columbus, Ohio 43224

with a copy to:

Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, New York 10019

Attn: Bryan Luchs, Esq.

If to RV, then to both of:

Attn: General Counsel

Retail Ventures Services, Inc.

3241 Westerville Road

Columbus, Ohio 43224

Attn: General Counsel

DSW Inc.

810 DSW Drive

Columbus, Ohio 43219

          9. Default. RV shall not be deemed in default under this License Agreement until such
time as ten (10) days have elapsed subsequent to RV’s receipt of written notice from VCDS of an
event of a monetary default or twenty (20) days have elapsed subsequent to RV’s receipt of written
notice from VCDS of an event of a non-monetary default and RV’s failure to cure such default within
said period. Provided that if a monetary default cannot reasonably be cured within such twenty
(20) day period, then RV shall not be in default if it commences to cure such default within such
twenty (20) day period and thereafter diligently proceeds to cure such default. In the event RV
fails to cure any default within the applicable period subsequent to written notice, VCDS may
terminate this License Agreement and VCDS shall have any and all remedies available at law or in
equity. VCDS shall not be deemed in default under this License Agreement until such time as twenty
(20) days have elapsed subsequent to VCDS’s receipt of written notice from RV of an event of
default and VCDS’s failure to cure such default within
said twenty (20) day period. In the event VCDS fails to cure any default within the twenty
(20)

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day period subsequent to written notice, RV may terminate this License Agreement and RV shall
have any and all remedies available at law or in equity.

          10. Assignment. This License Agreement and the rights and obligations of RV may not
be assigned without the prior written consent of VCDS. All affiliates other than the RV Affiliates
listed on Exhibit A and their respective uses must be approved by VCDS, which approval
shall not be unreasonably withheld or delayed.

          11. Occupancy. RV shall accept the Premises in its then “as is” condition and VCDS
shall not be required to perform work of any kind or nature to prepare the space for occupancy by
RV.

          12. Use. RV shall use and occupy the Premises only for the uses permitted under the
Master Lease only.

          13. RV’s Compliance with Law. RV shall comply with all federal, state and local
statutes, rules, ordinances, orders, codes and regulations, and legal requirements and standards
issued thereunder, including all amendments and supplements thereto which are applicable to RV’s
use and manner of use of the Premises.

          14. Incorporation of Master Lease.

(A) The License Agreement is subject to all of the terms of the Master Lease with the same force
and effect as if fully set forth herein at length, excepting only as otherwise specifically
provided herein. Except as otherwise provided herein, all of the terms with which VCDS is bound to
comply under the Master Lease shall, to the extent that they apply to the Licensed Area and except
as otherwise provided herein, be binding upon RV, and all of the obligations of Master Landlord set
forth in the Master Lease shall, to the extent that they apply to the Licensed Area, be binding
upon VCDS and shall inure to RV’s benefit.

(B) Except to the extent caused by a default by VCDS under the Master Lease or this License
Agreement or by the negligence or misconduct of VCDS, VCDS shall have no responsibility or
liability of any nature whatsoever to RV as a consequence of any default of or by Master Landlord
under the Master Lease or for Master Landlord’s failure or delay in furnishing to RV or the
Licensed Area any services, utilities, repairs or facilities of any kind whatsoever which Master
Landlord is required to furnish to VCDS or to the Licensed Area. Provided, however, VCDS shall
take commercially reasonable steps to enforce its rights under the Master Lease and to require
Master Landlord to perform its obligations under the Master Lease.

          15. Broker. The parties warrant and represent to each other that no person has
negotiated or brought about this transaction. Each of RV and VCDS shall defend, indemnify and save
harmless the other party from and against all loss, cost, liability, claim, damage or expense
(including, without limitation, court costs and reasonable attorneys’ fees) incurred in connection
with or arising out of any claims for brokerage commissions, finder’s fees, or other compensation
resulting from or arising out of such party’s representations and warranties in this Article 15
being untrue.

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          16. Surrender. Upon the termination of this License Agreement, RV shall quit and
surrender the Licensed Area to VCDS broom clean and in good order, condition and repair, except
for ordinary wear and tear. If the Licensed Area are not so surrendered upon such termination, RV,
at the option of VCDS, shall be deemed to be occupying the Licensed Area as a tenant from month to
month, at a monthly rental equal to one and one half times the rent payable during the last month
of the term of this License Agreement and subject to all of the other terms of this License
Agreement insofar as the same are applicable to a month to month tenancy. RV’s obligations under
this Article 16 shall survive the termination of this License Agreement.

          17. Limited Recourse to VCDS. Notwithstanding anything to the contrary contained
herein, VCDS’s liability under the terms of this License Agreement shall be limited to the interest
of VCDS in the Premises, and RV shall look solely to the interests of VCDS in the Licensed Area for
the recovery of any judgment against VCDS arising out of or in any way connected with the failure
to perform the obligations of VCDS under this License Agreement, the relationship of VCDS and RV
created by this License Agreement, or the use and occupancy of the Licensed Area, and no other
property or assets of VCDS, or of VCDS’s officers, directors, partners, principals (disclosed or
undisclosed), members, affiliates, and any similar parties shall be subject to levy, lien,
execution, attachment or other enforcement procedure for the satisfaction of RV’s rights and
remedies under or with respect to this License Agreement, the relationship of VCDS and RV created
by this License Agreement or the use and occupancy of the Licensed Area.

          18. Applicable Law. This License Agreement and the rights and obligations of the
parties shall be construed in accordance with the laws of the State of Ohio.

          19. Entire Agreement. This License Agreement contains the entire agreement of the
parties with subject to the matter contained therein, suspending any and all previous agreements,
whether oral or written. This License Agreement may not be amended, altered, modified or extended
except by a written instrument executed by all of VCDS, DSW and RVSI.

[Remainder of the page intentionally left blank; signatures follow.]

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          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 
	 	VALUE CITY DEPARTMENT STORES LLC,
an Ohio limited
liability company

 	 
	 	By:  	/s/ James A. McGrady
 	 
	 	 	Printed Name:  	James A. McGrady 	 
	 	 	Its: Vice President 	 
	 
	 	RETAIL VENTURE SERVICES, INC.,
an Ohio corporation

 	 
	 	By:  	/s/ James A. McGrady
 	 
	 	 	Printed Name:  	James A. McGrady 	 
	 	 	Its: Chief Financial Officer 	 
	 
	 	DSW INC.,
an Ohio corporation

 	 
	 	By:  	/s/ William L. Jordan
 	 
	 	 	Printed Name:  	William L. Jordan 	 
	 	 	Its: Vice President and General Counsel 	 
	 

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