Document:

Exhibit 10.9

 

Exhibit 10.9

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is dated as of November 29, 2004,
between Hartville Group, Inc., a Nevada corporation (the “Company”) and Hirsch C. Ribakow
(the “Executive”).

WITNESSETH:

     A. WHEREAS, the Company intends to hire the Executive on an ongoing basis and
the Company wants to formalize the relationship.

     B. WHEREAS, the parties desire for the Executive to act as Chief Operations
Officer of the Company commencing the date hereof and during the term hereof.

     C. WHEREAS, the parties desire to execute and deliver this Agreement to provide
for the continued employment of Executive by the Company.

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

AGREEMENT:

     1. Engagement. The Company hereby engages the Executive and the Executive
hereby accepts such engagement upon the terms and conditions hereinafter set forth.

     2. Term. This Agreement shall commence on the date hereof (the “Commencement
Date”), and shall remain in effect for a period of three (3) years thereafter (the “Term”).
This Agreement shall also terminate at such time as the Company, or the Executive, gives written
notice of termination of this Agreement pursuant to Section 13 of this Agreement.

     3. Duties. The Company hereby engages the Executive to serve as the Chief
Operations Officer of the Company and, as such, he shall perform all duties commonly incident
to the office of Chief Operations Officer, including such additional duties not inconsistent with
such position as the Board of Directors of the Company (the “Board”) shall prescribe from time to
time.

     4. Performance of Duties. During the term of this Agreement, the Executive shall
devote his best efforts, ability and attention to the business of the Company.

 

 

     5. Compensation.

	 	A.  	Salary. For all services rendered by the Executive
under this Agreement as Chief Operations Officer of the Company shall pay the One Hundred Twenty
Five Dollars ($125,000) per annum (the “Base Salary”). The Executive’s Base
Salary shall be payable within the established payroll cycle for the Company’s
salaried officers or employees. Salary payments shall be subject to federal
withholding and other applicable payroll deductions and taxes.
	 
	 	B.  	Options The Company shall grant to the Executive
options to purchase two hundred thousand shares of common stock, with 100,000 vesting over the
period of the Term, and 100,000 performance to be based on criteria
determined by the Board of Directors of the Company along with an exercise
price and duration determined by the Board of Directors of the Company
which will been set at the closing price of the employment start date.
	 
	 	C.  	Benefits. The Executive shall be eligible to
participate in all group insurance plans of the Company, and other existing or new perquisites or benefits offered
to executive management of the Company. If the Executive wishes to forego
the health insurance benefits, a credit for the employer paid portion will be
added to the salary. An auto allowance of $500 per month ($6,000 a year) will
be added to the salary.

     6. Reimbursement of Expenses. The Company shall reimburse the Executive for all
reasonable and necessary expenses incurred in carrying out his duties under this Agreement
upon presentation by the Executive to the Company of appropriate documentation indicating the
amount and purpose for such expense

     7. Vacation. Executive shall be entitled to four weeks vacation beginning each
calendar year of the Term.

     8. Agreement Not to Disclose Trade Secrets or Confidential Information. During the
term of this Agreement and after its termination, the Executive shall not disclose or utilize
any trade secrets, confidential information, or other proprietary information acquired by the
Executive during the course of his employment with the Company, its successors or assigns, or any of its
affiliates (collectively, the “Company Affiliates”). As used herein, “trade secret”
means the whole or any portion or phase of any formula, pattern, device, combination of devices, source-code
of any proprietary software, or compilation of any scientific, technical or commercial
information, including any design, list of suppliers, list of customers or improvement thereof, as well as
pricing information or methodology, contractual arrangements with vendors or suppliers, business
development plans or activities, or financial information of the Company or any of the Company
Affiliates that is for use, or is used, in the operation of the Company or any of the Company
Affiliates’ businesses that is not commonly known by or available to the public and that
derives economic value from not being generally known to, and not being readily ascertainable by
proper means by, other persons who can obtain economic value from its disclosure or use and is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy. The

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Executive agrees to return to the Company any and all such trade secrets, confidential
information or other proprietary information immediately upon the termination of this Agreement.

     9. Non-Solicitation of Customers and Suppliers. Executive agrees that during his
employment hereunder, he shall not, whether as an individual or sole proprietor, or as a
principal, agent, officer, director, employer, employee, consultant, independent contractor, partner or
shareholder of any firm, corporation or other entity or group or otherwise, directly or
indirectly, solicit the trade or business of, or trade, or conduct business with, any customer,
prospective customer, supplier, or prospective supplier of the Company for any purpose other than for the
benefit of the Company. Executive further agrees that for two (2) years following termination
of his employment hereunder for any reason, Executive shall not, directly or indirectly, solicit
the trade or business of, or trade, or conduct business with any customers or suppliers, or
prospective customers or suppliers, of the Company.

     10. Death or Disability.

          A. In the event of the Executive’s death during the term of this Agreement, this
Agreement and the Executive’s future Base Salary, incentive compensation and benefits shall
automatically be terminated. In such event, the Company shall pay severance to the Executive’s
estate (i) any unpaid Base Salary; and (ii) all accrued but unpaid allowances and expense
reimbursements.

          B. If the Executive becomes unable to perform his employment duties during the
term of this Agreement because of the “disability” of the Executive, the Company may terminate
this Agreement and the Executive’s employment hereunder. In such event, the Company shall pay
to the Executive (i) any unpaid Base Salary; and (ii) all accrued but unpaid allowances and
expense reimbursements. For purposes of this provision, the term disability shall mean the
Executive is unable to perform his material duties as an employee for the Company or any of
the Company Affiliates, due to mental or physical illness or injury, for a period of at least one
hundred (180) days, in the opinion of a qualified physician selected mutually by the Company and the
Executive.

     11. Termination by the Company or the Executive.

          A. Termination by the Company for Cause. The Company may terminate this Agreement and
the Executive’s employment hereunder “for cause” at any time. As used herein, for “cause” shall
mean any one of the following:

	 	(1)  	The willful breach or intentional neglect by
the Executive of his job duties and responsibilities;
	 
	 	(2)  	Conviction of any felony:
	 
	 	(3)  	Commission of an act of fraud, embezzlement or
material misappropriation against the Company; or

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	 	(4)  	A material breach of this Agreement by the Executive.

          B. In the event the Company terminates the Executive’s employment for cause,
the Executive’s Base Salary and benefits shall automatically terminate as of the effective
date of such termination and the Company shall pay to the Executive (i) any unpaid Base Salary through
the date of termination; and (ii) all accrued but unpaid allowances and expense
reimbursements, and the Executive shall not be entitled to receive any other compensation or severance
allowance, including any incentive compensation earned after termination, under this Agreement. In
addition, all options received and not exercised shall be cancelled and the Executive shall not be
entitled to any options hereunder.

     With respect to matters set forth in subsections (1), (3), (3) and (4) above, the Company
shall give prompt notice to the Executive if it believes grounds for termination under any of such
provisions exist, and the Executive shall have a reasonable period of time (not to exceed ten
business days, to respond and to cure any such grounds for “cause” as may be alleged or to reply
to any such claims or charges. Termination under such provisions shall be warranted only after the
Board of Directors of the Company has determined, in good faith, that such “cause” exists after
having afforded the Executive the opportunity to respond or to cure as set forth above.

          C. Termination by the Executive Without Good Reason. The Executive may
terminate this Agreement and his employment with the Company without “good reason” (as
defined below) upon 30 days’ prior written notice to the Company. In such a case, the
Executive may be required to perform his business duties and shall be paid his regular salary up to the
date of the termination. At the option of the Company, the Company may require the Executive to
depart from the Company upon receiving said 30 days’ notice from the Executive of the
termination of this Agreement. In such event, the Company shall pay to the Executive (i) an
amount equal to 30 calendar days of his Base Salary at the then-effective rate; and (ii) all
accrued but unpaid allowances and expense reimbursements, and the Executive shall not be entitled to
receive any other compensation or severance allowance, including any incentive compensation
earned after termination, under this Agreement. In addition, all options received and not
exercised shall be cancelled and the Executive shall not be entitled to any options hereunder.

          D. Termination by the Company Without Cause. Excluding the conditions
pursuant to Section 11E herein, the Company may terminate this Agreement and the Executive’s
employment without cause, upon thirty days’ prior written notice to the Executive. The Company
shall pay to the Executive on the date of termination without cause (i) a severance allowance
of three months the Base Salary at the then-effective rate; and (ii) all accrued but unpaid
allowances and expense reimbursements, including any incentive compensation and vacation time accrued.
The Executive shall retain all vested options but will not be entitled to any non-vested
options.

          E. Termination by the Company Upon A Change of Control. The Company may
terminate this Agreement and the Executive’s employment without cause at any time upon 30
days’ prior written notice to the Executive. However, if the termination occurs within one
year of a change of control (as defined below), the Company shall pay to the Executive on the date of
termination without cause (i) a severance allowance of one year of the Base Salary at the
then-effective rate; and (ii) all accrued but unpaid allowances and expense reimbursements,
including

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any incentive compensation and vacation time accrued. The Executive shall retain all vested
options and all non-vested options shall immediately vest and be retained by the Executive. For
purposes of this Section 11E, “Change in Control” shall mean (i) the acquisition by a person or an
entity or a group of persons and entities, directly or indirectly, of more than fifty-one (51%)
percent of the Company’s common stock or assets in a single transaction or a series of transactions
(hereinafter referred to as a “51% Change in Control”); (ii) a merger or other form of corporate
reorganization resulting in an actual or de facto 51% Change in Control.

     12. Indemnification. The Executive shall be entitled to indemnification from the
Company to the fullest extent permitted under the Company’s then current Articles of
Incorporation and Bylaws and under the law of the jurisdiction of the Company’s incorporation
as may be in effect from time to time.

     13. Notices. All notices, requests, demands and other communications provided for in
this Agreement shall be in writing. Any notice, request, demand, claim or other communication
hereunder shall be deemed duly given if it is sent by registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:

	 	 	 	 	 
	

	 	To the Executive:
	 	Hirsch C. Ribakow
	

	 	 	 	3496 Bendemeer Road
	

	 	 	 	Cleveland Heights, OH 44118
	 
	 	 	 	 
	

	 	To the Company:
	 	Hartville Group, Inc.
	

	 	 	 	1597 N. Main St.
	

	 	 	 	N. Canton, OH 44720
	 
	 	 	 	 
	

	 	With Copy to:
	 	Joseph I. Emas, Esq.
	

	 	 	 	1224 Washington Avenue
	

	 	 	 	Miami Beach, Florida 33139

     Any party may send any notice, request, demand, claim or other communication hereunder to the
intended recipient at the address set forth above using any other means (including personal
delivery, expedited courier, messenger service, facsimile, ordinary mail or electronic mail), but
no such notice, request, demand, claim or other communication shall be deemed to have been duly
given unless and until it actually is received or refused by the intended recipient. Any party may
change the address to which notices, requests, demands, claims and other communications hereunder
are to be delivered by giving the other party notice in the manner herein set forth.

     14. Assignment. Neither this Agreement nor any of the parties’ rights and obligations
hereunder may be assigned by a party without the prior written consent of the other party
hereto.

     15. Arbitration.

          A. Any controversy or claim arising out of or relating to this Agreement, the
employment relationship between the Executive and the Company, or the termination thereof,

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including the arbitrability of any controversy or claim, which cannot be resolved amicably
after a reasonable attempt to negotiate such a resolution shall be submitted to arbitration by the
American Arbitration Association in accordance with its Commercial Dispute Resolution Procedures
and Rules, as such rules may be amended from time to time, and at its office in Miami-Dade County
in Florida. The award of the arbitrator shall be final and binding upon the parties, and judgment
may be entered with respect to such award in any court of competent jurisdiction. Any arbitration
under this Arbitration Agreement shall be governed by and subject to the confidentiality
restrictions set herein. The Executive acknowledges reading, prior to the signing of this
Agreement, the Commercial Dispute Resolution Procedures and Rules of the American Arbitration
Association, which are available via the internet at the site of the American Arbitration
Association at http://www.adr.org. Notwithstanding the foregoing, any controversy or claim arising
out of or relating to any claim by the Company for temporary or preliminary relief with respect to
Sections 8, 9 and l0 herein need not be resolved in arbitration and may be resolved in a court of
competent jurisdiction.

          B. The Executive acknowledges that this agreement to submit to arbitration includes all
controversies or claims of any kind (e.g., whether in contract or in tort, statutory or common law,
legal or equitable) now existing or hereafter arising under any federal, state, local or foreign
law (except that any claim by the Company for temporary or preliminary relief with respect to
Sections 8, 9 and 10 herein may be brought in a court of competent jurisdiction), including, but
not limited to, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1866, the Employee Retirement Income Security Act, and the Americans
With Disabilities Act, and the Executive hereby waives all rights thereunder to have a judicial
tribunal resolve such claims.

     16. Voluntary Agreement. The Executive acknowledges that before entering into this
Agreement, the Executive has had the opportunity to consult with any attorney or other advisor
of his choice, and that this constitutes advice from the Company to do so if he chooses. The
Executive further acknowledges that he has entered into this Agreement of his own free will,
and that no promises or representations have been made to him by any person to induce him to enter
into this Agreement other than the express terms set forth herein. The Executive further
acknowledges that he has read this Agreement and understands all of its terms, including the
waiver of rights set forth in Section 17.

     17. Binding Effect. This Agreement shall bind the parties hereto, their respective
successors and permitted assigns.

     18. Amendment. No provisions of this Agreement may be amended, modified, waived
or discharged unless such amendment, waiver, modification or discharge is agreed to in writing
signed by the Executive and on behalf of the Company by such officer as may be specifically
designated by the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

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     19. Entire Agreement. This Agreement constitutes the entire agreement between
the parties, pertaining to the subject matter hereof, and supersedes all prior or contemporaneous
written or verbal agreements and understandings with the Executive in connection with the
subject matter hereof.

     20. Governing Law. This Agreement and the rights and obligations hereunder shall be
governed by the laws of the State of Ohio without regard to its conflicts principles and the
parties to this Agreement specifically consent to the jurisdiction of the courts of the State of Ohio
over any action arising out of or related to this Agreement.

     21. Survival. All covenants, agreements, representations and warranties made herein or
otherwise made in writing by any party pursuant hereto shall survive the termination of this
Agreement and the employment of the Executive hereunder.

     22. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions shall,
nevertheless, continue in full force and effect without being impaired or invalidated in any way.

     23. Counterparts. This Agreement may be executed by the parties in one or more
counterparts, each of which when so executed shall be an original and all such counterparts
shall constitute one and the same instrument. Confirmation of execution by electronic transmission
of a facsimile signature page shall be binding upon any party so confirming.

[SIGNATURES ON FOLLOWING PAGE]

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

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	/s/
Hirsch C. Ribakow	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	Hartville Group, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ W. Russell Smith, III	 	 
	

	 	 	 	 	 	 
	 	 	Name: W. Russell Smith, III	 	 
	 	 	Title: CEO	 	 

Page 8 of 8 of Employment AgreementExhibit 10.10

 

Exhibit 10.10

LEASE AGREEMENT

     THIS LEASE AGREEMENT (hereinafter “Lease”) is made and entered into this 30th day of
June, 2004, by and between JEFFREY R. HEIN, or his assigns, (hereinafter referred to as “Lessor”),
and HARTVILLE GROUP, INC., a Nevada Corporation (hereinafter referred to as “Lessee”).

W I T N E S S E T H:

     In consideration of the rental payments and all of the agreements contained herein, Lessor
hereby grants a leasehold interest to Lessee, and Lessee hereby accepts a leasehold interest from
Lessor in and to the property described on Exhibit “A”, attached hereto and incorporated herein,
upon and subject to the terms, provisions and conditions hereinafter stipulated:

     1. Description of Premises and Equipment. The premises subject to this Lease
consists of that certain parcel of real property described on Exhibit “A” together with a building
containing approximately 12,000 square feet to be constructed thereon pursuant hereto, together
with all Lessor’s rights, easements, and appurtenances in and to the premises and in and to such
rights as Lessor may have in roads, or streets, whether public or private, which are contiguous to
the premises and are reasonably required for the installation, maintenance, operation and service
of sewer, water, gas, power, or other utility lines and for ingress and egress to the above-
described parcel of real estate, said real estate being hereinafter referred to as the “Premises.”

     2. Term of Lease. The term of this Lease shall begin on the Commencement Date,
which shall be the date Lessor received the final building inspection approval for the
building from the appropriate governmental authority. The accrual of rent hereunder shall begin on the Rent
Accrual Date which shall be thirty (30) days after the Commencement Date, or the date Lessee
occupies the Premises and opens for business, whichever first occurs. Unless otherwise
extended, the term of this Lease shall end on the last date of the tenth (10th) full Lease
Year as hereinafter defined. A “Lease Year” is defined herein as being that twelve (12) month period commencing on
the first (1st) day of the first (1st) month after the Rent Accrual Date, and each subsequent
anniversary thereof. If the Rent Accrual Date falls upon a date other than the first
(1st) day of a month, the rent for that month shall be pro rated accordingly.

     In order to avoid any subsequent controversy as to the exact Commencement Date, the

 

 

Rent Accrual Date, each party hereto agrees upon demand of the other to execute a written
document in recordable form expressing the Commencement Date, Rent Accrual Date, and the ending
date for the original term hereof.

     3. Base Rent. Lessee covenants and agrees to pay Lessor as Base Rent for the
Premises the sum of One Million Four Hundred Forty Thousand and no/100 Dollars
($1,440,000.00). So long as Lessee is not in default under this Agreement, such base rental
may be divided into monthly installments of Eleven Thousand Five Hundred and no/100 Dollars
($11,500.00) during years one (1) through five (5) and monthly installments of Twelve Thousand
Five Hundred and no/100 Dollars ($12,500.00) during years six (6) through ten (10).

     All Base Rent shall be paid in advance without notice from Lessor on the first day of each
month, shall be payable to the order of Lessor or to such other entity as Lessor may designate,
and shall be made at 7958 Erie Avenue N.W., Canal Fulton, OH 44614 or at any other such place as
the Lessor may, from time to time, designate.

     In the event that any payment due to Lessor from Lessee hereunder shall not be received by
Lessor before the 5th day of each month, a one-time “late charge” of five cents ($.05)
per each One Dollar ($1.00) so overdue may be charged by Lessor to Lessee for the purpose of
defraying the expense incident to the handling of such delinquent payments.

     4. Option To Expand. In consideration of the sum of Thirty-Six Thousand and
no/100 Dollars ($36,000.00) from Lessee to Lessor payable in increments of Twelve Thousand
and no/100 Dollars ($12,000.00) per year, with the initial payment due and payable on the Rent
Accrual Date, the second (2nd) payment due and payable twelve (12) months after the
Rent Accrual Date, and the third (3rd) payment due and payable twenty-four (24) months
after the Rent Accrual Date, Lessor hereby grants to Lessee the exclusive right to expand the proposed
building an additional eight thousand (8,000) square feet to a total building size of approximately
twenty thousand (20,000) square feet. The proposed building expansion is depicted on Exhibit “B”,
which is attached hereto and specifically incorporated herein. Lessee’s right to expand the
proposed building shall be effective on and after the date of execution of this Lease
Agreement and shall continue through the end of the third (3rd) Lease Year as defined in Section 2 of
this Lease Agreement. If Lessee does not exercise Lessee’s right to expand the proposed building

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prior to the end of the third (3rd) Lease Year, Lessee’s right to expand the
building hereunder shall expire and become null and void.

     Lessee shall exercise its right to expand the proposed building by giving written notice of
expansion to Lessor in accordance with Section 21of this Lease Agreement. If Lessee exercises its
right to expand the proposed building prior to construction of the 12,000 square foot building, the
term of this Lease with respect to the expansion area shall be ten (10) years as set forth in
section 2 of this Lease Agreement. The base rental rate on the additional 8,000 square feet shall
be Nine Hundred Sixty Thousand and no/100 Dollars ($960,000.00). So long as Lessee is not in
default under this Agreement, such rental may be divided into monthly installments of Seven
Thousand Six Hundred Sixty-Six and 67/100 Dollars ($7,667.67) during years one (1) through five (5)
and monthly installments of Eight Thousand Three Hundred Thirty-Three and 34/100 Dollars
($8,333.34) during years six (6) through ten (10). The Commencement Date, Rent Accrual Date, and
the manner of payment shall be consistent with these dates as set forth in Section 2 of this Lease
Agreement.

     If Lessee exercises its right to expand the proposed building after construction of the
12,000 square foot building has commenced or after the building has been completed, Lessor and
Lessee hereby agree to extend the term under this Lease Agreement for both the 12,000 square foot
portion of the building and the 8,000 square foot expansion for a full ten (10) years from the
date that rent accrues to Lessor with respect to the additional 8,000 square foot expansion area.
The accrual of rent with respect to the expansion area shall begin on the Expansion Rent Accrual
Date which shall be thirty (30) days after the Lessor receives the final building inspection
approval for the expansion area from the appropriate governmental entity or the date Lessee
occupies the Premises and opens for business, whichever first occurs. The Base Rent for the
additional eight thousand (8,000) square feet expansion area shall be the sum of One Million and
no/100 Dollars ($1,000,000.00). So long as Lessee is not in default under this Agreement, such
Base Rental may be divided into monthly installments of Eight Thousand Three Hundred Thirty-Three
and 34/100 Dollars ($8,333.34). The Base Rent shall be paid to Lessor in the same manner as set
forth in Section 3 of this Lease.

     If the Lease Term for the initial 12,000 square foot portion of the building is extended

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beyond the original ten (10) years as set forth in this Lease Agreement, the Base Rental
rate for said 12,000 square foot portion after the initial ten (10) year period shall be at the
rate of $13.75 per square foot which equates to a monthly payment in the amount of Thirteen
Thousand Seven Hundred Fifty and no/100 Dollars ($13,750.00).

     5. Option
to Renew. In the event Lessee has paid the rentals and other charges as
herein provided, and kept and performed all the terms, covenants and provisions of this Lease
Agreement to be kept and performed by Lessee, and not otherwise, Lessee shall have the right,
privilege and option to extend the term of this Lease for one (1) successive additional five
(5) year period upon and under all the same terms and provisions hereof, except that the base rental
for the Premises shall be at the rate of $13.75 per square foot multiplied by the square footage of
the building, whether 12,000 square feet or 20,000 square feet. So long as Lessee is not in
default under this Agreement, such rental may be divided into monthly installments of Thirteen
Thousand Seven Hundred Fifty and no/100 Dollars ($13,750.00), if the building size is 12,000 square
feet or Twenty Thousand Nine Hundred Sixteen and 67/100 Dollars ($20,916.67) if the building size is
20,000 square feet.

     Written notice of intention to exercise this renewal option shall be delivered by Lessee to
Lessor at least six (6) months prior to the expiration of the prior term hereof or such option
shall be considered unexercised and, therefore, null and void.

     6. Lessee’s
Use of Premises. Lessee shall use the Premises for general office use and
for no other purposes without Lessor’s written consent, which consent shall not be
unnecessarily denied.

     From the date of execution and for the duration of this Lease, Lessee shall maintain the
Premises and the business conducted thereon in accordance with all applicable federal, state, and
municipal laws, rules, regulations, and ordinances.

     7. Subordination
and Non-disturbance. This Lease shall be and remain subject
and subordinate to the lien of any mortgage which Lessor may place upon the Premises, and to
all terms, conditions and provisions thereof, to all advances made, and to any renewals,
extensions, modifications or replacements thereof. Lessor shall exercise its best efforts to arrange with
any mortgagee to obtain an agreement that any sale of the Premises pursuant to the exercise of any

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rights or remedies under the mortgage, or otherwise, shall be made subject to this Lease and
the rights of the Lessee hereunder, but cannot guarantee being able to obtain such an agreement.
Lessee agrees to attorn to the mortgagee or such other person or entity as its new lessor, and this
Lease shall continue in full force and effect as a direct Lease between the Lessee and such
mortgage or such other person or entity, upon all the terms, covenants and agreements set forth in
this Lease. In addition, Lessee covenants and agrees that, upon the request of Lessor or any
mortgagee named in such mortgage, Lessee shall execute and deliver whatever instruments may be
required for such purposes and to carry out the intent of this section.

     8. Construction
of Improvements. Lessor agrees to construct for Lessee on the
Premises an approximate 12,000 square foot building designed for office purposes, with parking
areas, drives, and other improvements for use in connection with such building, all in accordance
with the plans and specifications which are attached hereto as Exhibit “C” and are expressly
incorporated herein. Lessor shall bear all costs of the construction and improvements set forth in
Exhibit “C”. All other interior buildout of Lessee’s offices shall be at Lessee’s cost. Such other
interior buildout is set forth on Exhibit “D” which is attached hereto and specifically
incorporated herein. Lessor and Lessee agree that Lessor shall complete the interior buildout of
Lessee’s offices under a separate and distinct contract between Lessor and Lessee.

     Attached to this Lease, and made a part hereof as Exhibit “E”, are the Site Plans for the
Premises. The Site Plans have been reasonably designed by the parties to provide Lessee with the
ideal layout for its use. Lessor agrees to submit said Plans to the City of Canton for zoning and
Site Plan approvals. In the event that the City, by virtue of zoning, planning, engineering,
utilities or for any other reason, insists on revising said Site Plans, Lessee agrees to abide by
any such revisions provided such requirements do not adversely effect Lessee’s ability to conduct
business on the site. Lessee’s consent to any such revisions shall not be unreasonably withheld or
delayed.

     Lessee may, during the course of construction alter the plans and specifications for the
office building by means of dated change orders signed by both Lessor and Lessee. All change
orders must describe the alteration, list the increased cost or credit to Lessee, and identify the
effect, if any, on the construction schedule. In consideration of the furnishing of all materials
and

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performance of work for any change order, Lessee hereby agrees to pay Lessor the sum of Lessor’s
actual cost of the change order plus ten percent (10%). In addition, Lessee acknowledges that
Lessor will charge a processing fee of Two Hundred Fifty and no/100 Dollars ($250.00) per change
order, after the fifth (5th) change order, for any change requested by Lessee after the
plans and specifications for the office building have been approved by Lessor and Lessee pursuant
to this Agreement. It being understood, however, that no net credit remaining to Lessee will be
refunded in cash or rent reduction.

     Lessee shall, at all times, have the right to inspect the progress of construction of
improvements as provided herein. If Lessee shall give Lessor notice of faulty construction or of
any deviation from the final plans and specifications which are incorporated herein by reference,
Lessor agrees to promptly make all proper corrections. Lessor agrees to commence construction of
the improvements within thirty (30) days after its obtaining building permits from the City of
Canton, and to proceed diligently to complete construction of the building and improvements as
aforesaid within the next succeeding five (5) months. However, if the completion of construction
shall be delayed by weather, strikes, lockouts, casualties, acts of God, or other similar matters
beyond Lessee’s control, the time of such completion shall be extended accordingly, but Lessor,
nevertheless, agrees, notwithstanding any such matters beyond Lessor’s control, to complete
construction on or before February 15, 2005.

     If minor construction items remain to be completed after Lessee accepts possession (based on
issuance of a Certificate of Occupancy), Lessor shall perform the necessary work as expeditiously
as possible and with minimal adverse effect on Lessee.

     9. Taxes
and Assessments. During the term of this Lease, in addition to the base
rent as provided herein, Lessee shall pay and discharge punctually, whenever they shall become
due and payable, all real estate taxes and general assessments attributable to the Premises.
Lessee shall be responsible for all personal property taxes attributable to the Premises.

     10. Utilities.
Lessee shall pay for all gas, fuel, electricity, water, sewer, and
other utility services used, consumed or wasted upon or in connection with the Premises on and after
the Commencement Date and during the term hereof as and when the charges for the same shall
become due and payable.

- 6 -

 

     11. Insurance.

     A. During the term of this Lease, Lessee shall, at Lessee’s sole expense, provide and
maintain in full force and effect general liability insurance for the benefit and protection
of Lessor and Lessee in an amount not less than One Million and 00/100 Dollars ($1,000,000.00) for each
occurrence of personal injury or death plus a Two Million and no/100 Dollars ($2,000,000.00)
excess liability umbrella per occurrence, and for damage to property in an amount not less
than Five Hundred Thousand and 00/100 Dollars ($500,000.00). Lessee shall provide Lessor with
written proof of such coverage.

     B. Lessee shall maintain and provide during the term of this Lease and renewals and
extensions thereof, fire and extended coverage insurance with standard coverage endorsements
for the benefit of Lessor (and its mortgagees, if any) and Lessee on all buildings and
improvements located on the Premises in an amount equal to the “full replacement cost” thereof
as determined by Lessor from time to time, excluding foundation and excavating costs. Said
policy shall also include a provision insuring Lessor for loss of rents.

     C. Lessee shall provide proof of coverage for the risks required to be insured herein
on the date of execution and upon reasonable written request of Lessor from time to time
thereafter. Each policy shall contain a provision that the same shall not be canceled, nor
the coverage reduced, without at least thirty (30) day’s prior written notice to each of the
covered parties.

     D. Lessee does hereby indemnify, defend and save Lessor harmless from any and all
loss, damages, liability, costs and expenses, including but not limited to reasonable
attorney’s fees, reasonable investigative and discovery costs, court costs, and all other sums which Lessee may
pay or become obligated to pay on account of any claim or assertion of liability arising or
alleged to have arisen out of any act or omission of Lessee, its agents, contractors, sub-contractors,
servants, employees, licensees or invitee occurring in, on or about the Premises or relative
to Lessee’s breach of this Lease or caused by any individual or entity under the control of
Lessee.

     12. Mechanic’s
Liens. As relates to construction, repair, reconstruction, or the
making of alterations or additions to the Premises by Lessee, it is expressly understood and
agreed, and notice is hereby given, that no persons, firms or corporations furnishing labor,

- 7 -

 

material, or service for such construction, repair, and reconstruction, or the making of
alterations or additions to the Premises at any time during the term hereof, or any renewal, upon
the Premises, or for or in respect to any appurtenances, equipment, machinery or fixtures thereon
shall have any lien upon the Lessor’s interest in the Premises and the appurtenances, equipment,
machinery and fixtures thereof.

     If, by reason of any action or actions by Lessee, any mechanics or other liens are
filed, whether against Lessee or Lessee’s interest herein or purportedly against Lessor or
Lessor’s interest in the Premises, such lien or liens shall be discharged by Lessee, at Lessee’s
cost and expense, by bond or otherwise, within thirty (30) days after the filing of such lien or
liens, and the filing of the lien or liens, if so discharged, shall not be deemed a violation of
the provisions of this section.

     13. Maintenance
and Repairs. Lessee accepts the Premises in their condition on
Commencement Date, subject to the parties’ written list of Lessor’s then uncompleted work, and
Lessee shall, during the entire Lease Term, and any renewals and extensions thereof, at Lessee’s
own cost and expense, keep and maintain or cause to be kept and maintained in good condition and
repair, ordinary wear and tear excepted, the interior and exterior of all buildings and
improvements except as set forth herein (including, but not limited to, the grounds and
landscaping, and pavement), at any time erected in and around the Premises and shall use all
reasonable precaution to prevent waste, damage or injury to said buildings and improvements.
Lessor shall be responsible for maintenance and repair of the foundation, structure, and roof of
the building except if such repairs and maintenance are made necessary by the negligence of
misconduct of Lessee or its agents, contractors, or employees. Lessee shall also at its own
expense maintain all mechanical equipment, heating, ventilation and air conditioning (HVAC),
Systems, and electrical systems, be responsible for snow removal, and maintain and keep open, free
from obstruction and in good repair, all electric, water, sewer, and other utility lines and
connections, conduits, pipes, catch basins, manholes, poles, lighting fixtures and other related
facilities situated in, under, or on the Premises. Lessee shall provide a minimum of two (2)
inspections of H.V.A.C. per year and make all necessary adjustments and/or repairs necessitated by
such inspections. Notwithstanding the foregoing, in the event any replacement of the

- 8 -

 

H.V.A.C. equipment is necessitated by virtue of normal wear and tear and/or age of equipment.
Lessor shall replace and/or restore and/or rebuild said equipment. Lessor shall not be responsible
for replacement if it is determined that said replacement is necessitated by the misuse and/or the
lack of proper maintenance by Lessee. Lessor shall require Lessee to provide all records of
maintenance prior to installation of any new equipment at the expense of Lessor. Equipment is
defined as the entire unit, compressor and/or heat exchanger. Lessee shall be responsible for
damage to the roof caused by Lessee’s HVAC or other maintenance contractors.

     Except as otherwise set forth above, Lessee shall pay promptly when due, all charges, costs
and expenses for all such maintenance, repairs and replacements, and shall indemnity and hold
harmless the Lessor from and against any and all liabilities, obligations, costs, expenses and
damages for or on account thereof.

     14. Alterations and Improvements. Lessee may make any appropriate cosmetic
improvements to the Premises. Lessee shall make no other alterations, improvements or
additions, to, in, on or about the Premises without first obtaining the written consent of the
Lessor which consent shall not be unnecessarily denied. Notwithstanding any contrary provision
contained herein, if Lessor fails to approve the improvements to the Premises to be made by
Lessee prior to opening the Premises for business, Lessee shall have the right to terminate
this Lease upon written notice to Lessor. Lessee will pay promptly when due all charges, costs and
expenses for any and all alterations, additions, signs and improvements, made by or for, in,
on or about said Premises, and indemnify and hold harmless the Lessor and said Premises from and
against any and all liabilities, obligations, costs, expenses and damages for or on account
thereof. All alterations, additions and improvements made by or for the Lessee shall remain for the
benefit of the Lessor, except as otherwise specifically provided for herein.

     15. Damage or Destruction of Improvements. Should the whole or any part of the
structures standing on the Premises be partially or wholly destroyed by fire or other cause,
such destruction or injury shall not operate to terminate this Lease, but the Lease shall continue
in full force and effect and Lessor may, at Lessor’s sole cost and expense, within six (6) months from
the date of said damage or destruction, begin to restore or rebuild the structures to a condition
equal to or greater in value to that just prior to the event causing such damage or destruction.
There

- 9 -

 

shall be a prorata proportional abatement of rent and other charges hereunder for any period
during which Lessee may be deprived of the possession or use of all or part of the Premises by
reason of such destruction or injury.

     16. Covenant
of Title. It is understood and agreed by the parties that at the time
of preparation of this Lease Agreement, Lessor’s interest in the Premises is that of a purchaser
under a Real Estate Purchase Agreement. Lessor’s obligations under this Lease Agreement are subject
to the condition precedent that Lessor shall complete the referenced Real Estate Purchase
Agreement and acquire a fee simple interest in and to the Premises. Lessor covenants that upon
its completion of said Real Estate Purchase Agreement and its purchase of the Premises, Lessor
will be well seized of and have good title and authority to lease the Premises.

     17. Quiet
Enjoyment. The Lessor hereby covenants and agrees that if the Lessee
shall keep and perform all of the covenants and agreements on the part of the Lessee to be kept
and performed in the manner and within the time herein provided for the performance thereof, the
Lessee shall have the possession of said Premises without any manner of hindrance from the
Lessor or any persons lawfully claiming through or under the Lessor.

     18. Representations
and Warranties. Lessor represents and warrants to Lessee to
the best of Lessor’s belief and knowledge:

	 	(a)  	Possession. As of the Date of Commencement, no person or entity other
than Lessee will be in possession or entitled to possession of the Premises;
	 
	 	(b)  	Condemnation. Lessor has received no written or official notice and
has no knowledge that there is any pending or threatening condemnation, eminent domain
or similar proceeding of any nature whatsoever affecting the Premises or any part
thereof, or that any such proceedings are contemplated by any governmental
entity;
	 
	 	(c)  	Service Contract. As of the Date of Occupancy, Lessor will not have
contracted for any service and will not have made commitments or obligations therefore
which bind Lessee as a successor in interest with respect to the Premises;
	 
	 	(d)  	Litigation. To Lessor’s knowledge, there are no pending or threatened
lawsuits, actions, or proceedings which affect title to or possession of the Premises;

- 10 -

 

	 	(e)  	Other Agreements. The execution and delivery of this Lease by Lessor,
and the performance of the transaction herein contemplated by Lessor, will not violate the
provisions of any Agreement or other instrument, or any obligation to which
Lessor is a party or by which it is otherwise bound or any regulation,
	 
	 	(f)  	Toxic Materials. To Lessor’s knowledge, no gasoline, oil, fuels,
toxic materials, hazardous substances, or other materials deemed “hazardous wastes” by the Ohio
or United States Environmental Protection Agencies have been handled, stored,
disposed of, or otherwise dealt with at or on the Premises.

     19. Assignment and Subletting. Lessee may not, without the written consent of
Lessor first had, assign or encumber this Lease or its rights hereunder. Lessee may not, without
the written consent of Lessor first had, sublet all or any part of the Premises at any time during
the term of this Lease. Consent of any Assignment or Sublease shall
not be unreasonably withheld.

     20. Access to Premises. Lessor shall have reasonable rights of access to the Premises
for the purpose of inspecting the condition thereof, exhibiting the Premises to prospective
purchasers or mortgagees, or for any other reasonable purpose, from time to time throughout
the term of this Lease, provided Lessor has given Lessee reasonable notice prior to such time of
entry. Lessor shall also have the right of access to make any repairs required by Lessee’s
breach of its covenant to repair and maintain the Premises. Lessor shall also have the right during
the last six (6) months of the Lease term or any renewal thereof to show the Premises to any
prospective tenant or purchaser at reasonable times during business hours.

     21. Service of Notice. Every payment, notice, approval, consent or other
communication authorized or required by this Lease shall not be effective unless the same
shall be in writing and delivered personally to Lessor’s address below or sent postage prepaid by U.S.
Certified Mail, Return Receipt Requested, to the addresses listed below for Lessor and Lessee
respectively;

	 	 	 	 	 
	

	 	Lessor:
	 	Jeffrey R. Hein
	

	 	 	 	7958 Erie Avenue N.W.
	

	 	 	 	Canal Fulton, OH 44614

- 11 -

 

	 	 	 	 	 	 	 
	

	 	Lessee:
	 	Hartville Group, Inc.
	 	Tax I.D.#                                        
	

	 	 	 	1597 North Main Street	 	 
	

	 	 	 	North Canton, Ohio 44720	 	 

or to such other address as either party may designate by notice given from time to time in
accordance with the terms herein. Any notice in accordance with the provisions of this article
shall be deemed to have been given as of the date such notice shall have been delivered or placed
in the U. S. Postal Service.

     22. Holding Over. In the event Lessee continues to occupy the Premises after the last
day of the term hereby created and Lessor elects to accept rent thereafter, a tenancy from month
to month only shall be created under and subject to all other provisions contained herein.

     23. Surrender of Premises. Within ten (10) days after termination of this Lease
Agreement, in any manner provided for herein, Lessee shall remove all trade fixtures, trade
machinery, trade equipment, furniture and other personal property of whatever kind and nature or
kept or installed on the Premises by Lessee, and Lessee shall restore the Premises and building
thereon to its original condition, specifically including but not limited to capping all plumbing
(water and gas lines) either below the floor, within the ceiling, or within the walls (except in
restrooms), disconnecting all exposed electrical conduits at the electrical box, removing all
interior partitions and repairing the floor, walls, and ceiling where damaged by such removal,
removing all fixtures and repairing the floor, walls, and ceiling where damaged by such removal,
removing all signage, graphic art, and other decorations from the interior and exterior of the
building and the Premises and repairing the floor, walls, and ceiling where damaged by such
removal, and removing carpeting, nails, tacks, paper, glue, and other vestiges of the carpeting and
restoring the floor surface and walls to the condition existing before carpeting was laid.

     24. Estoppel Certificate. Either party to this Lease shall from time to time during the
term of this Lease, immediately upon the request of the other party, execute and deliver to the
other party a statement certifying that this Lease is in full force and effect, the date through
which the rent and other charges hereunder have been paid, and any factual matters reasonably requested
by the other party.

- 12 -

 

     25. Successors and Assigns. The terms, conditions and covenants of this Lease shall
be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal
representatives, successors or assigns.

     26. Recording. This Agreement shall not be recorded. However, if either of the
parties desire to record a memorandum of this Lease, Lessor and Lessee agree to execute and
deliver to the other said memorandum of lease, containing only minimum statutory requirements,
which memorandum of lease may then be recorded in the office of the Summit County Recorder.

     27. Amendments. No waivers, alterations or modifications of this Lease or any
agreements in connection therewith shall be valid unless in a writing duly executed by both Lessee
and Lessor herein.

     28. Invalidity
of Provisions. If any term, covenant, condition, or provision of this
Lease or the application thereof to any person or circumstance shall, at any time, or to any extent
be invalid or unenforceable, the remainder of this Lease or the application of such term or
provision to persons or circumstances other than those as to which it is held invalid or
unenforceable, should not be affected thereby, and each term, covenant, condition, and provision
of this Lease shall be valid and enforceable to the fullest extent permitted by law.

     29. Default.
If Lessee fails to pay the rent at the time and in the manner hereinbefore
provided, and fails to cure said default within five (5) business days after written notice from
Lessor of such default; or if Lessor defaults in the performance of any of the covenants or
agreements or duties or obligations herein stipulated to be performed by Lessee, or if Lessee shall
abandon said Premises or permit the same to remain vacant for more than thirty (30) days, or shall
make an assignment for the benefit of creditors, or if the interest of Lessee in said Premises
shall be sold under execution or other legal process, or if Lessee shall be adjudged bankrupt, or if a
receiver for Lessee shall be appointed, or if Lessee makes any assignment or sublets said Premises
without prior written approval by Lessor, and if any such default, occurrence or conditions shall
not be fully and completely abated, removed and corrected within fifteen (15) days after Lessor
shall have given written notice thereof to Lessee, Lessor, at its election and any time thereafter
while such default or condition continues may declare all amounts due under this Lease
immediately due and payable, may declare the term of this Lease ended and enter into the

- 13 -

 

possession of said Premises and all buildings, structures, fixtures and improvements thereon,
therein or thereabout, and sue for and recover all damages arising out of such default, and/or
Lessor may, at its election declare all amounts due under this Lease immediately due and payable,
sue for and recover all such damages without declaring said term ended and without entering into
such possession. The appointment of a receiver for the Premises at the instance of Lessor shall
not be regarded as a dispossession or eviction of Lessee.

     No waiver of any covenant or agreement to be performed by Lessee or Lessee’s breach of any
covenant or condition of this Lease shall be taken to constitute a waiver of any subsequent breach
of the same, or any other covenant, agreement, or condition, nor shall the acceptance of rent by
Lessor, at any time when Lessee is in default, under any covenant, agreement or condition hereof,
be construed as a waiver of such default or Lessor’s right to terminate this Lease on account of
such default, nor shall any waiver or indulgence granted by Lessor to Lessee be asserted as an
estoppel against Lessor, it being expressly covenanted and agreed by Lessee that if Lessee shall at
any time be in default in any of the covenants or agreements to be performed hereunder, any
acceptance of rent by Lessor during the continuance of such default, or the failure of Lessor
promptly to avail itself of any rights or remedies as Lessor may have, shall not be construed as a
waiver of such default. All rights and remedies available to Lessor hereunder are cumulative and
are in addition to all other legal and equitable rights available to Lessor.

     All property, including, but not limited to, goods and chattels, used or kept on the leased
Premises may be held by Lessor as security for the payment of rent due to Lessor under the terms
of this Lease and for all costs incurred by Lessor as a result of Lessee’s breach of this Lease.
Lessor and Lessee specifically intend that this provision shall provide Lessor with a valid
landlord’s lien on all property, including, but not limited to, goods and chattels, used or kept
on the leased Premises.

     30. Security Deposit. Lessee, upon the execution of this Agreement, shall deposit
with Lessor the sum of Twelve Thousand Five Hundred and no/100 Dollars ($12,500.00) as security
for the full and faithful performance of the terms, covenants and conditions of this Lease. If
Lessee exercises its Option to Expand as set forth in Section 4 of this Lease Agreement, Lessee
shall hereafter deposit with Lessor the additional sum of Eight Thousand Three Hundred Thirty-

- 14 -

 

Three and 34/100 Dollars ($8,333.34) as additional security for the full and faithful performance
of the terms, covenants and conditions of this Lease. In the event default shall be made in the
payment of the rent or in the performance of any of the other covenants, agreements or conditions
to be kept or performed by Lessee, Lessor may, without notice and without terminating this Lease,
apply the funds so deposited in payment of rent or other sums due hereunder or in remedying any
other default hereunder, or Lessor may terminate this Lease by reason of any such default as
heretofore provided and applied said sum on payment of any sums due Lessor. Any action taken by
Lessor under this paragraph shall not be construed to be a waiver of rights under this Lease, or of
rights in case of subsequent default to enforce any remedy available to Lessor by law or in equity.
Within thirty (30) days after termination of this Lease for any cause, provided Lessee be not then
in default, including the yielding up of possession of said Premises, Lessor shall, upon being
furnished with satisfactory evidence that Lessee has paid all bills and debts incurred in
connection with the terms and conditions of this Lease, return to Lessee said sum deposited or such
portion thereof remaining on deposit with Lessor.

     31. Hazardous
Materials. Lessee hereby agrees to indemnify, save harmless and defend
Lessor from and against any and all liabilities, claims, penalties, forfeitures, suits and cost
and expense incident thereto, including costs of defense, settlement and reasonable attorney fees,
which Lessor may hereafter incur, become responsible for, or pay out as a result of death or
bodily contamination or of adverse effects on the environment or any violation of governmental
laws, regulations, or orders caused, in whole or in part, by (a) Lessee’s failure to comply with
any federal, state, or local law, regulation or ordinance; (b) any neglect or willful act or
omission of Lessee, its employees, or contractors; or (c) any claim under the Comprehensive
Environmental Response Compensation And Liability Act (the Superfund Law), 42 U.S.C. 9601-9657,
the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., any applicable state laws and
any and all common law claims caused by or resulting from any hazardous material, substance, or
waste and any other costs incurred by Lessor, directly or indirectly, due to environmental
contamination attributable to Lessee’s conduct.

     For purposes of this indemnity, any acts or omissions (whether or not they are negligent,
intentional, willful, or unlawful), shall be strictly attributable to Lessee for the purposes of
this

- 15 -

 

Lease only, whether performed by Lessee or by employees, agents, assigns, subcontractors, or
others acting for Lessee. This provision shall survive the termination of this Lease.

     32. Captions.The captions appearing in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe, or describe the scope or intent of this
Lease or in any way affect this Lease.

     33. Entire
Agreement. This Lease supersedes any and all other agreements, either
oral or in writing, between the parties hereto with respect to the Premises and contains all
of the covenants, agreements and other obligations between the parties in respect to the Premises.

     34. Net
Lease Provisions. Lessor shall not be required to provide any services nor to
do any act in connection with the Premises except as specifically provided herein.

     35. Authority
of Parties. The parties hereto by executing this Lease represent and
warrant that they have full authority to enter into this Lease and perform the covenants
herein contained.

     36. Applicable
Law and Ordinances. The laws of the state of Ohio shall govern the
validity, performance, and enforcement of this Lease. The submission of this document for
examination does not constitute an offer to Lease, or a reservation or an option for the
Premises and becomes effective only upon execution and delivery thereof by Lessor and Lessee.

     The parties hereto have executed this Agreement as of the date and year set forth above.

	 	 	 	 	 	 	 
	 	 	LESSOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Jeffery R. Hein	 	 
	 
	 	 	 	 	 	 
	 	 	LESSEE:	 	 
	 	 	Hartville Group, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	by:
	 	/s/ W. Russell Smith, III	 	 
	

	 	 	 	 	 	 
	

	 	 	 	W. RUSSELL SMITH, III	 	 
	

	 	 
	 	Its: CEO	 	 

STATE OF OHIO, COUNTY OF STARK, SS:

- 16 -

 

     BEFORE ME, a Notary Public in and for said county and state, personally appeared the
above-named JEFFERY R. HEIN, who acknowledged that he did sign the foregoing instrument and that
the same is his free act and deed.

     IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal at Canton,
Ohio, this                      day of July, 2004.

	 	 	 
	

	 	                                                                                
	

	 	Notary Public

STATE OF OHIO, COUNTY OF STARK, SS:

     BEFORE ME, a Notary Public in and for said county and state, personally appeared the
above-named HARTVILLE GROUP, INC., a Nevada Corporation, by  
                                                          , its                                        
who acknowledged that he did sign the foregoing instrument and that the same is his
free act and deed.

     IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal at Canton,
Ohio,
this                    
day of July, 2004.

	 	 	 
	

	 	Notary Public

- 17 -

 

Commercial-Residential

New Construction - Remodeling
 

PO Box 167 - Canton, OH 44707-0167

2100 Faircrest Street SW- Canton, OH 44706

Office: 330-484-2970 Fax: 330-484-9408

Email: hein@heininc.com

Final Commencement Date for Lease

Per the lease agreement entered into on June 30, 2004 between Jeffrey R. Hein and
Hartville Group, Inc., the commencement date is March 1, 2005.

The base rent is calculated on the actual square footage of 12,395. The cost per square foot for
years one (1) through five (5) is $11.50 and years six (6) through ten (10) is $12.50.

Monthly rent due on the first (1st) of the month per the lease agreement for years one
(1) through five (5) equals $11,878.55. Monthly rent for years six (6) through ten (10) due on the
first (1st) of the month per lease agreement is $12,911.46.

The rent accrual date is March 1, 2005 and the ending date of the lease is the last date of the
tenth (10th) full lease year. As per the lease agreement, ‘a “lease year” is defined herein as
being that twelve (12) month period commencing on the first (1st) day of the first (lst)
month after the Rent Accrual Date, and each subsequent anniversary therof’ .

	 	 	 	 	 	 	 
	/s/ Jeffery R. Hein
	 	 	 	 
	Lessor: Jeffery R. Hein
	 	Lessee: Hartville Group. Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ W Russell Smith, III	 	 
	

	 	 	 	 	 	 
	

	 	 	 	W. RUSSELL SMITH, III	 	 
	

	 	Its:
	 	CEO	 	 

STATE OF OHIO, COUNTY OF STARK,SS:

     Before me, a Notary Public in and for said county and state, personally appeared the
above-named JEFFERY R. HEIN, who acknowledged that he did sign the foregoing instrument and that
the same is his free act and deed.

     In testimony whereof, I have hereunto set my hand and affixed my official seat at Canton, Ohio
this 17 day of February, 2005.

	 	 	 	 	 
	

	 	/s/
Julie A. Spadone	 	 
	

	 	Notary Public	 	 

 

 

STATE OF OHIO, COUNTY OF STARK,SS:

     Before me, a Notary Public in and for said county and state, personally appeared the
above-named HARTVILLE GROUP, INC., a Nevada Corporation, by W Russell Smith, its CEO who acknowledged that
he did sign the foregoing instrument and that the same is his free act and deed.

     In testimony whereof, I have hereunto set my hand and affixed my official seat at Canton,
Ohio, this 23rd day of February 2005.

	 	 	 	 	 
	

	 	/s/
Maureen A. Hickey	 	 
	

	 	Notary Public

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