Document:

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                                                                   Exhibit 10.29

                                SUPPLY AGREEMENT

      THIS SUPPLY AGREEMENT (this "Agreement") is made to be effective as of
January 30, 2005 ("Effective Date"), by and between DSW Inc. (f.k.a. Shonac
Corporation), an Ohio corporation with a business address at 4150 East Fifth
Ave, Columbus, Ohio 43219 (the "Supplier"), and Filene's Basement Inc., a
Delaware corporation with a business address at 12 Gill Street, Suite 1600,
Woburn, MA 01801 ("Filene's").

                                   BACKGROUND

      The following facts constitute the background for this Agreement:

      A. Filene's currently owns and operates certain retail stores ("Store(s)")
and Supplier is a distributor of shoes and related merchandise.

      B. Filene's desires to have Supplier supply Merchandise (as defined
herein) for footwear departments in its Stores by obtaining Merchandise from
Supplier who will select the Merchandise, be the sole owner of the same, and
place Merchandise in such Stores with Filene's retaining a portion of the sales
price of all Merchandise sold as provided herein.

      C. Filene's and Supplier are parties to an Agreement dated April 1, 2000
("the Original Agreement") relating to Supplier's supply of Merchandise to
Filene's. Filene's and Supplier wish to amend and restate the Original Agreement
as it related to Covered Stores (as defined herein). Contemporaneously herewith,
Filene's and Supplier have also executed a Combo Store Supply Agreement (as
defined herein) to amend and restate the Original Agreement as it related to
Combo Stores (as defined herein).

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained in this Agreement, and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, the parties hereto, each
intending to be legally bound hereby, agree as follows:

1.    DEFINITIONS.

      In addition to the other terms defined herein, capitalized terms shall
have the meanings given to them as follows:

      1.1. "Combo Store" means a Covered Store which has 10,000 square feet or
more of sales floor space dedicated to the Shoe Department.

      1.2. "Combo Store Supply Agreement" means the Supply Agreement (Combo
Stores), dated the same date hereof, between Supplier and Filene's covering
Combo Stores.

      1.3. "Consignment Property" means, collectively, the following described
property whether now consigned, owned or existing or in the future consigned,
acquired or arising: (i) all Merchandise which has been, is now or in the future
consigned or delivered, directly or indirectly, by Supplier to, or for the
benefit of, Filene's; (ii) all replacements, additions, accessions,
substitutions, returns, repossessions and exchanges of any and all Merchandise;
(iii) all records of the foregoing (whether the records are maintained in
written or electronic form); and (iv) all products and proceeds of the foregoing
described property (such proceeds being in whatever form, including, without
limitation, additional Merchandise, accounts, inventory, instruments, documents,
chattel paper, general intangibles, money, bank accounts
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and deposits, cash and all insurance proceeds payable by reason of any loss or
damage of any or all of the foregoing described property).

      1.4. "Consignment Obligations" means, as of any date, the total unpaid
Supplier Proceeds owed to Supplier for Merchandise which has been, is now, or in
the future will be, delivered by Supplier to Filene's.

      1.5. "Covered Stores" means all of the Stores operated by Filene's that
include Shoe Departments and which Supplier has agreed to supply hereunder, each
of which have less than 10,000 square feet of sales floor dedicated to the Shoe
Department for each such Store, which number of Stores may change, increase or
decrease to reflect additional or closed Store locations from time to time
during the term of this Agreement.

      1.6. "Covered Store Schedule" means that schedule attached as Exhibit A
hereto of twenty-three (23) Stores in which Shoe Departments will be supplied
under this Agreement. Exhibit A may be updated from time to time by written
agreement of the parties. The Covered Store Schedule shall be amended from time
to time to include any new Covered Stores which include a Shoe Department.

      1.7. "Force Majeure" means an event which shall prevent Supplier from
performing, or causes a delay in, the performance of, any obligation required
hereunder by reason of strikes, lock-outs, labor troubles, inability to procure
goods, failure of power, riots, insurrection, fires, floods, explosions,
vandalism, acts of a governmental authority, failure of transportation not under
the reasonable control of Supplier, acts of terrorism, whether foreign or
domestic, war, armed conflict, or other reasons of a like nature which are
beyond the control of Supplier.

      1.8. "Gross Sales" means the gross proceeds from all sales of Merchandise,
including (i) the entire sales price of all Merchandise sold, (ii) the amount of
all credit sales, whether or not collected, (iii) the amount of all deposits not
refunded to customers, and (iv) any sales, excise or similar tax chargeable with
respect to sales of Merchandise and collected from customers.

      1.9. "Merchandise" means shoes, sneakers, boots, sandals, specialty dance
footwear, cleated shoes and other sports shoes, skates, shoe care products (e.g.
polish, cleaners and water proofers), and laces.

      1.10. "Net Sales" means the Gross Sales from the sale of Merchandise less
the value of (i) voided sales, cash or credit refunds or adjustments made with
respect to Merchandise sold and returned, (ii) all returns to manufacturers or
shippers, or returns so damaged they must be written off, (iii) transfers, sales
and exchanges among Shoe Departments to other locations as requested by
Supplier, (iv) sales not in the ordinary course of business, (v) employee
discounts actually allowed by Supplier, and (vi) sales tax or excise tax
chargeable with respect to Merchandise sales and collected from customers.

      1.11. "Shoe Department" means the area in the Covered Stores in which
Filene's will offer for sale the Merchandise.

      1.12. "SKU" means the stock keeping unit number assigned to each separate
item of Merchandise supplied by Supplier.

      1.13. "Supplier's Supervisor" means an individual or individuals employed
by Supplier, at Supplier's cost to provide supervision and recommendations as to
the Shoe Departments of multiple Covered Stores.

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2. GRANT OF SUPPLY RIGHT. Filene's hereby grants to the Supplier an exclusive
supply right (the "Supply Right") to supply Merchandise to the Shoe Departments
of all Covered Stores. Subject to Section 3, all Merchandise shall be owned by
Supplier with Filene's having the right to sell such Merchandise for the benefit
of Supplier and Filene's as provided in this Agreement. Filene's shall give
Supplier the first right of refusal to supply Merchandise pursuant to this
Agreement to any Store that will open a Shoe Department and which Store is not
on the Covered Store Schedule at the time the decision is made by Filene's to
open a Shoe Department in that Store. Filene's shall provide Supplier ninety
(90) days advance written notice of its intention to open a new footwear
department in any Store that is not a Covered Store or to add a Covered Store
and Supplier shall have thirty (30) days after the date of such notice to agree,
in Supplier's sole discretion, to supply Merchandise to the new Shoe Department.
If Supplier does not so agree, Filene's may supply Merchandise to the new
department itself or through a third party. In the event that Filene's intends
to open a significant number of Shoe Departments within a short time period and
Supplier agrees to supply such Shoe Departments as provided above, Supplier
shall have a reasonable amount of time, under the circumstances, to supply such
Shoe Departments. Notwithstanding anything to the contrary herein, Filene's and
Supplier agree that the Filene's Basement Store # 51 located at 426 Washington
Street, Boston, MA 02101 will not be subject to this Agreement.

3. SUPPLY OF MERCHANDISE. Supplier will supply Merchandise for each Covered
Store on the Covered Store Schedule. Filene's shall acquire no ownership rights
in and to the Merchandise supplied by the Supplier hereunder and title to
Merchandise shall remain in and with Supplier until actually sold, except that
title to Merchandise sold to Filene's customers shall pass to Filene's at the
instant the sale of such Merchandise is effected. In the event that Merchandise
is returned by the customer to a Store, title shall automatically re-vest in
Supplier.

4. MERCHANDISING AND PRICE PRACTICES.

      4.1. Merchandise Supplied. Supplier shall determine the quantity and mix
of the Merchandise to be sold at the Covered Stores. Supplier shall continuously
provide the Covered Stores with a complete line of salable inventory of current
season Merchandise in appropriate quantities and of a quality in keeping with
the quality of other merchandise sold by Filene's and targeted to Filene's
normal customer. The Merchandise supplied will generally be shipped in
pre-assorted case packs typical in the footwear industry, and Supplier will not
replenish pairs sold at a size level. Supplier will coordinate with Filene's to
provide Merchandise with scannable bar codes which are readily readable by
Filene's normal ticket scanning equipment.

      4.2. Compliance with Law. Supplier shall be responsible to assure that no
Merchandise will be supplied, and no Merchandise will be offered at any price or
in any manner, that violates any applicable Federal, state or other applicable
statute or regulation. If a Filene's store manager or officer becomes aware of
any actual or suspected violation, Filene's will immediately advise Supplier of
that violation. Filene's agrees to comply with all applicable laws and
regulations in the performance of this Agreement and in the operation of the
Covered Stores.

      4.3. Delivery Responsibility. Supplier shall arrange to deliver
Merchandise, at Supplier's cost, to Filene's distribution center, and Filene's
employees shall be responsible for receiving the Merchandise, accounting for the
Merchandise received, shipping the Merchandise to the Covered Stores and
stocking the Merchandise in or on the display case or fixture at each of the
Covered Stores. Filene's and Supplier may mutually agree from time to time that
Supplier will ship Merchandise directly to a Covered Store at Supplier's
expense. Filene's will maintain the Shoe Departments in a normal and neat
condition consistent with other departments in the Store. Mismates, defective or
damaged Merchandise received from Supplier will be noted and set aside for
inspection by Supplier's Supervisor and for disposition at Supplier's direction
within a reasonable time. Supplier shall be exempt from Filene's distribution
center, vendor and data exchange requirements.

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      4.4. Transfers of Refunded Merchandise in non-Covered Stores. Filene's
will make good faith efforts to ensure that Merchandise returned to Stores which
are not Covered Stores will be transferred or shipped to a Covered Store at
Supplier's expense.

      4.5. Prices and Discounts. Supplier will set the prices at which its
Merchandise will be sold and put in force reasonable discounting policies
designed to clear stale Merchandise. Except as provided below, Supplier shall
have the only authority to markdown Merchandise. Nevertheless, Supplier agrees
(i) to participate in limited, selected promotional events in the Covered Stores
as agreed upon in advance by Supplier, and (ii) to maintain a policy of periodic
markdowns based on length of time Merchandise has been on the selling floor.
Supplier shall offer to employees who receive a discount from Filene's own
departments under Filene's policies the same discount on all sales of
Merchandise as is normally received by them under Filene's then current policies
in effect from time to time. Notwithstanding the foregoing, discounts for sales
to Filene's employees shall only be in accordance with Filene's normal policies
in effect from time to time and shall in no event exceed 30% of the otherwise
applicable price for the Merchandise.

      4.6. Supervisors. Supplier shall provide, at its expense, a sufficient
number of trained Supplier's Supervisors who will coordinate and make
recommendations as to arrangement, presentation and organization of the Shoe
Departments in the Covered Stores.

      4.7. Space. Filene's, at its expense, shall make available an amount of
space for the Shoe Department in a size and location as listed on the Covered
Store Schedule, which space is not to be less than the greater of (i) the
existing Shoe Department space in each Shoe Department on the date of this
Agreement, or (ii) 1,000 square feet. Filene's shall make available for
Supplier's use a minimum of 200 square feet of storage space in each Covered
Store. Any relocation or renovation of a Shoe Department must be at Filene's
sole expense and any proposed new location for the Shoe Department must be
approved in advance by Supplier.

      4.8. Utilities and Personnel. Filene's, at its expense, will provide all
utilities and personnel to operate the Shoe Department in each Covered Store.
Filene's will be responsible for all store staffing and all decisions relating
to hiring and termination of such personnel related to the Covered Stores
(including all sales and stocking personnel), and will bear all expenses
relating thereto including without limitation, the cost of all employee
salaries, payroll taxes and employee benefits. Filene's shall use commercially
reasonable efforts to assure that the quality of the personnel in the Shoe
Department is consistent with the quality of its personnel in other departments
in the same Covered Store. Supplier at its expense shall provide
Merchandise-related training for Filene's personnel serving the Shoe Department.
Filene's agrees to indemnify Supplier from all damages, costs of defense and
expenses (including attorneys' fees) relating to claims based on wrongdoing by
Filene's employees, agents or contractors unless caused by Supplier or its
agents', contractors', or employees' active negligence (not including negligence
by omission or inaction), gross negligence or willful wrongdoing.

      4.9 Advertising. Supplier will, upon request, provide to Filene's
information related to Merchandise to be advertised in newspapers or other
public media. Filene's will be responsible for producing the advertising copy
and placing it with the appropriate media according to Filene's normal
procedures for its own merchandise. Supplier will not be obligated to pay any
advertising expenses relating to the Shoe Departments of the Covered Stores.

      4.10 Premium Location Fee. Supplier agrees to pay to Filene's for each
Covered Store existing on the Effective Date of this Agreement, a monthly fee
("Location Fee") in the amount set forth opposite of each Covered Store on
Exhibit B, attached hereto and incorporated herein. In the event that a Store
listed on Exhibit B is no longer a Covered Store under this Agreement, Supplier
will not be

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required to pay the Location Fee attributable to that Store and any such
Location Fee will be prorated for the actual number of days the Shoe Department
operated in that Store.

5. FIXTURES, EQUIPMENT, LOCATION AND LAYOUT. Filene's shall at its sole cost
provide the fixtures and equipment to display Supplier's Merchandise in the
Covered Stores or as needed to replace existing fixtures. The fixtures and
equipment decisions with respect to design, type, color, material, layout, and
location (subject to Section 4.7) within each Covered Store and related matters
for new fixtures shall be made jointly by Supplier and Filene's. Filene's shall
maintain at its expense all displays and fixtures in good repair and condition,
ordinary wear and tear excepted. Supplier shall, subject to Filene's approval,
provide individual Merchandise "case talkers" for depicting the style, price,
and any other pertinent information that Supplier deems appropriate. Title to
all fixtures paid for by Filene's shall remain in Filene's name and title to all
fixtures paid for by Supplier shall remain in Supplier's name. Upon termination
of this Agreement, and at Filene's request, Supplier will remove such fixtures
not owned by Filene's. Absent a continuing Event of Default, no fixtures or
equipment belonging to Supplier or any patented fixtures of Supplier shall be
transferred or removed from a Store without the consent of Supplier; and,
further, in no event will Filene's sell, transfer or otherwise dispose of any
fixtures patented by Supplier without Supplier's express written consent.

6. SALES REVENUE SHARING; ACCOUNTING PROCEDURES.

      6.1 Sales. All sales of Merchandise will be identified with the Shoe
Department and shall be made through Filene's normal cash registers or
point-of-sale systems and by use of Filene's normal sales recording equipment.
Net Sales from sales of Merchandise shall be split 80% to Supplier and 20% to
Filene's. Supplier's 80% portion of the Net Sales ("Supplier's Proceeds") shall
be held in trust for the benefit of Supplier and Supplier's Lender; provided
however, that prior to receiving written notice to the contrary from Supplier's
Lender, Filene's shall deliver all of Supplier's Proceeds directly to Supplier
and shall be released from any claim by Supplier's Lender for all such funds
turned over to Supplier.

      6.2 Reports. The reporting of all sales of Merchandise shall be made in
conformity with the methods established by Filene's from time to time. The costs
of such methods and point-of-sale equipment and maintenance thereof shall be
borne by Filene's. Filene's also agrees to provide and make accessible to
Supplier information, statistics and reports available within Filene's existing
merchandise processing system which relate to the Merchandise. Any special
reports or enhancements required by the Supplier will be subject to Filene's
approval. Filene's hereby agrees to cooperate and coordinate with Supplier the
implementation of electronic exchange and communication between Filene's
computer system and Supplier's computer system in connection with point-of-sale,
receiving and shipping and inventory information related to the Merchandise,
including Merchandise returns at any Stores which are not Covered Stores.

      6.3. Books & Records. Supplier shall maintain and preserve the records
required to be maintained hereunder for the length of time required by
applicable law. Supplier shall have the right to obtain from Filene's all
statements, data or explanations reasonably necessary to validate each
Accounting Statement (as defined in Section 6.5) provided by Filene's to
Supplier. Filene's shall keep true and correct books of accounts in accordance
with Filene's regular accounting practices related to the Merchandise, which
entries shall be open to examination and inspection by Supplier upon reasonable
advance notice during all normal business hours during the term of this
Agreement and for three (3) years thereafter. Such examination and inspection
will not occur more than twice in any twelve (12) month period.

      6.4. Filene's Fee. In consideration of granting the Supply Right, Filene's
shall be entitled to twenty percent (20%) of Net Sales of Merchandise ("Filene's
Fee").

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      6.5. Accounting. No later than Friday of each week Filene's shall send to
Supplier a written statement (the "Accounting Statement") by electronic mail or
by personal delivery setting forth with respect to the immediately preceding
week the following:

            (i) the total amount of Gross Sales and Net Sales, and

            (ii) the amount of Filene's Fee.

      6.6. Settlement. Contemporaneously with the submission of the Accounting
Statement, Filene's shall pay to Supplier in immediately available funds or by
another method agreed to by the parties, subject to the provisions of Section
13, an amount equal to Net Sales in or from the Shoe Department during the
immediately preceding week less the amount identified in clause (ii) of Section
6.5. Supplier may, by notice to Filene's given no later than ninety (90) days
following the date of an Accounting Statement, question the accuracy of such
Accounting Statement. Filene's and Supplier shall make diligent, good faith
efforts to resolve the disagreement within thirty (30) days following such
notice. If Filene's does not receive a notice of dispute from Supplier within
one hundred twenty (120) days after the date of the applicable Accounting
Statement, Supplier will be deemed to have accepted such Accounting Statement,
subject to any adjustment required as permitted herein.

7. TERM AND TERMINATION.

      7.1. Basic Term and Renewals. The original term of this Agreement shall
commence on January 30, 2005, and continue through and include January 29, 2010,
unless previously terminated in accordance with the provisions of this
Agreement. This Agreement shall be automatically extended for additional periods
of one (1) year each. If either party chooses not to renew this Agreement at the
end of the original term or any successive renewal term, it shall deliver a
written termination notice to the other party not less than one hundred eighty
(180) days prior to the end of the then effective term.

      7.2. Termination for Breach. Either party may terminate the Supply Right
and obligations related thereto as to a particular Shoe Department in an
individual Covered Store or as to all Covered Stores at any time for any Event
of Default hereunder by the other party hereto by giving ninety (90) days prior
written notice to the defaulting party. In addition, an individual Store shall
no longer be a Covered Store, and this Agreement shall terminate as to such
individual Store, if at any time that Store ceases for any reason to be operated
by Filene's. Filene's shall provide to Supplier written notice no later than
ninety (90) days prior to the date when any Covered Store will no longer be
operated by Filene's.

      7.3. Supplier Special Termination Rights. Supplier shall have the right,
upon sixty (60) days prior written notice, to terminate the Supply Right and
obligations related thereto as to all Covered Stores whether or not there has
been any breach or default by Filene's if at any time the number of Covered
Stores of Filene's, in the aggregate, is reduced to less than four Covered
Stores, or (b) Filene's has defaulted under the Combo Store Supply Agreement and
Supplier has given Filene's notice of termination thereunder.

      7.4. [Intentionally deleted.]

      7.5. Effect of Termination. Except as otherwise provided in Section 13
hereof, upon the termination of the Supply Right and obligations related hereto
for any reason permitted herein as to a particular Covered Store, individually,
or as to all Covered Stores (a) Supplier shall have the option to liquidate
existing inventory of the Merchandise; provided, however, that such right to
continue selling shall not extend beyond the date upon which this Agreement
shall formally terminate unless agreed in writing by the parties, (b) Filene's
shall be entitled to offer for sale Merchandise not obtained from Supplier for a
period of thirty (30) days prior to the effective date of any such termination,
and (c) Filene's will continue to display the remaining inventory of Merchandise
in a manner consistent with such displays prior to such termination although the
space allocated to that remaining inventory of Merchandise will be reduced as

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the quantity of that inventory of Merchandise is reduced. Except as otherwise
provided in Section 13, Supplier shall remove, at Supplier's expense within
ninety (90) days following such termination: (y) all Merchandise supplied by
Supplier located in any Filene's Store, and (z) if demanded by Filene's in
writing, and except as otherwise provided herein, all fixtures provided by
Supplier (if any) which Filene's demands be removed. Supplier may purchase from
Filene's any patented fixtures installed in the Shoe Departments at a price
equal to 100% of the unamortized costs of such fixtures with those costs being
amortized on a straight-line basis over five (5) years; provided however, the
purchase price of such patented fixtures shall not be less than 5% of the
original cost of such fixtures. Supplier will promptly pay all costs associated
with the repair of any damage to a Store caused by such removal. Except as
otherwise provided in Section 13 hereof, any Merchandise or fixtures not removed
by Supplier as provided above will be deemed abandoned and Filene's may take
such actions (including destroying) with respect to such items without
liability.

8. SHORTAGES AND DAMAGES. Supplier will maintain complete and accurate records
of the inventory of its Merchandise at each Store and make that information
available to Filene's. At the time of each Annual Inventory (as defined below),
Filene's, at Supplier's expense, shall arrange for having an inventory to be
taken of Supplier's Merchandise at the same time of Filene's scheduled year-end
physical inventory (the "Annual Inventory"). Supplier, at its expense, may have
a representative observe the taking of the Annual Inventory. In the event that
the Annual Inventory shows shrinkage in Merchandise in excess of two and
seven-tenths percent (2.7%) of annual Net Sales ("Allowable Shrink"), Filene's
will pay to Supplier 50% of the retail value (as listed in Supplier's inventory
retail stock ledger) of that shrinkage amount which exceeds the Allowable Shrink
(less any insurance proceeds payable to Supplier with respect to such loss)
within thirty (30) days of the date of the Annual Inventory.

9. IDENTITY, INDEMNITY AND RELATIONSHIP TO PARTIES.

      9.1. No Agency. Each party to this Agreement agrees that in performing its
respective duties and obligations hereunder, and in exercising any of the rights
or benefits granted hereunder, neither shall at any time hold itself out to be
the agent, servant, or employee of the other party, in any manner whatsoever,
and it is expressly understood that it is the intention of this Agreement that
neither party hereto shall at any time be or act as the agent, servant or
employee of the other.

      9.2. Indemnity of Filene's. Supplier will indemnify Filene's and save it
harmless from and against any and all claims, actions, damages, liability and
expense (including attorneys' fees) in connection with loss of life, personal
injury and/or damage to property arising from or out of any occurrence caused by
Supplier, by its agents, contractors, or employee negligence, omission or
deliberate acts. In case Filene's shall, without fault on its part, be made a
party to any litigation commenced by or against Supplier and relating to any of
the foregoing matters, then Supplier shall protect and hold Filene's harmless
and shall pay all costs, expenses and reasonable attorneys' fees that may be
incurred or paid by Filene's in defending such action.

      9.3. Indemnity of Supplier. Filene's will indemnify Supplier and save it
harmless from and against any and all claims, actions, damages, liability and
expense in connection with loss of life, personal injury and/or damage to
property rising from or out of any occurrence caused by Filene's or its agents,
contractors, or employees' negligence, omission or deliberate acts. In case
Supplier shall, without fault on its part, be made a party to any litigation
commenced by or against Filene's and relating to any of the foregoing matters,
then Filene's shall protect and hold Supplier harmless and shall pay all costs,
expenses and reasonable attorneys' fees that may be incurred or paid by Supplier
in defending such action.

      9.4. Indemnification Procedure

            9.4.1. Notice. If any third party makes a claim for which Supplier
      or Filene's, as the case may be, (the "Indemnified Party") seeks indemnity
      from the other party hereto

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      ("Indemnitor"), the Indemnified Party shall as soon as practicable notify
      Indemnitor of the details of the claim ("Claim Notice").

            9.4.2. Defense of Admitted Indemnified Claim. After receiving a
      Claim Notice, Indemnitor may elect, by written notice to the Indemnified
      Party, to assume the defense of such claim by using counsel selected by
      Indemnitor, acting reasonably. If Indemnitor assumes such defense and
      admits that the claim is subject to the Indemnitor's indemnity
      obligations, then: (i) the claim shall be deemed to be a claim indemnified
      by the Indemnitor; (ii) the Indemnified Party may, at its election,
      participate in the defense of the claim, but Indemnitor will have no
      obligation to pay for any defense costs including attorneys" fees of the
      Indemnified Party after Indemnitor assumes the defense of the claim; and
      (iii) Indemnitor will have the right, without cost to Indemnified Party,
      to compromise and settle the claim on any basis believed reasonable, in
      good faith, by Indemnitor, and Indemnified Party shall be bound thereby.

            9.4.3. Disputed Indemnity. After receiving a Claim Notice, if
      Indemnitor either does not assume the defense thereof, or does so under a
      reservation of rights without admitting that the claim is subject to the
      Indemnitor's indemnity obligations, then: (i) the claim shall not be
      deemed to be a claim indemnified by the Indemnitor and neither party shall
      have waived any rights to assert that the claim is or is not properly a
      claim subject to the Indemnitor's indemnity obligations; (ii) both
      Indemnitor and Indemnified Party may, at their individual election,
      participate in the defense of such claim but Indemnitor will remain
      responsible for the costs of defense, including reasonable attorneys" fees
      of the Indemnified Party should the claim ultimately be determined to be
      subject to Indemnitor's indemnity obligation; and (iii) the Indemnified
      Party shall have the right to compromise and settle the claim on any basis
      believed reasonable, in good faith, by the Indemnified Party, and the
      Indemnitor will be bound thereby should the claim ultimately be determined
      to be subject to Indemnitor's indemnity obligation.

10. INSURANCE DAMAGE.

      10.1. Supplier Liability Insurance. Supplier shall maintain commercial
general and product liability insurance coverage against any loss or liability
for damages which may result from Supplier's operations or Supplier's
Merchandise either to persons or property with limits of not less than $2
million for injury to one person; and not less than $500,000 for property damage
or occurrence in each location (subject to normal deductibles and retentions).
Supplier's liability insurance shall name Filene's as an additional insured and
shall contain provisions waiving subrogation against Filene's; provided however,
that this provision shall not cover claims provided for in the indemnity clauses
of Section 4.8 and/or 9.3.

      10.2. Supplier Casualty Insurance. Supplier agrees to keep, at its own
cost and expense, all of its property and its Merchandise and all fixtures
provided by it in the Store adequately insured against loss by fire and all
other casualties covered by broad form extended coverage and sprinkler leakage
insurance policies (or Supplier may self-insure the same). Supplier shall bear
the entire risk of a casualty to its Merchandise and other property and all
fixtures located in the Stores; provided, however, that this provision shall not
cover claims provided for in the indemnity clauses Sections 4.8 and/or 9.3.

      10.3. Filene's Liability Insurance. Filene's shall provide broad form
comprehensive commercial general liability insurance coverage insuring Filene's
and Supplier against any loss or liability for damages which may result from
Filene's operations or Supplier's operations within the Covered Stores with
limits of not less than $2 million for injury to one person, and for property
damage or occurrence in each location (subject to normal deductibles and
retentions); provided, however, that this provision shall not cover claims
provided for in the indemnity clause of Section 9.2 for injuries to persons or
damage to property. The limits indicated herein may be satisfied by a primary
policy and umbrella liability policy showing the primary liability policy as an
underlying policy. A certificate of insurance naming Supplier, as an additional
insured shall evidence the insurance required herein. The primary liability
policy shall contain provisions waiving subrogation against Supplier.

                                       8
<PAGE>
         10.4. Filene's Worker Compensation Insurance. Filene's shall provide to
Supplier proof of insurance for worker compensation insurance for all Covered
Stores which insurance shall meet or exceed the regulatory requirements of the
state in which Covered Stores are located. Filene's agrees to indemnify and
defend Supplier for all claims brought by employees of Filene's.

11. LIENS AND TAXES. Supplier agrees to pay all ad valorem, personal property,
excise, use or other taxes and assessments and licenses of every description
assessed against it, in respect of or measured by the Merchandise or other
property of Supplier and all fixtures provided by Supplier. Filene's shall be
responsible for the payment of all sales taxes resulting from sales of the
Merchandise under this Agreement.

12. DEFAULT.

      12.1. Any one of the following shall constitute an event of default
("Event of Default") hereunder:

            12.1.1. Either party fails to comply with or perform as and when
      required or to observe any of the terms, conditions, or covenants of this
      Agreement, and such failure continues for a period of (a) ten (10) days
      after notice thereof to the defaulting party with respect to monetary
      defaults, and (b) thirty (30) days after notice thereof to the defaulting
      party with respect to non-monetary defaults; or

            12.1.2. Any proceeding under the United States Bankruptcy Code or
      any successor law or any law of the United States or of any state relating
      to insolvency, receivership, or debt adjustment is instituted by either
      party; any such proceeding is instituted against either party and is
      consented to by the respondent or remains undismissed for sixty (60) days;
      an order for relief is entered under the United States Bankruptcy Code or
      any successor law against either party; either party is adjudicated a
      bankrupt; a trustee, receiver or similar fiduciary is appointed to
      administer any substantial part of the property of either party; or either
      party makes an assignment for the benefit of creditors, admits in writing
      an inability to pay debts generally as they become due or becomes
      insolvent; or

      12.2. Upon the occurrence of an Event of Default hereunder, the
non-defaulting party may terminate this Agreement as provided in Section 7.2,
and/or exercise any other remedy provided by law or equity. An Event of Default
under Section 12.1.2 above shall be effective without notice or the taking of
any action by the non-defaulting party.

13. SUPPLIER'S LENDER. If at any time during the term of this Agreement Supplier
and Lender shall no longer both be "Loan Parties" (as defined in the credit
facilities existing on the date hereof) to the same credit facilities, or if
Supplier's supplying of Merchandise hereunder would otherwise constitute a
default under any such credit facility, Supplier's obligations to supply
Merchandise hereunder shall cease until consent therefor has been obtained from
Supplier's Lender. Upon the obtaining of such consent, Filene's and Supplier
hereby agree, for the benefit of such commercial lender(s) which from time to
time provide Supplier's principal credit facilities ("Supplier's Lender"), to
the following:

      13.1. Security Interest/Consignment.

            13.1.1. All Merchandise delivered by Supplier from time to time to
      Filene's under this Agreement is made on a consignment sales basis.
      Filene's acknowledges that Supplier is the sole owner of, and holds sole
      title to, the Merchandise.

            13.1.2. Filene's hereby acknowledges that Supplier has granted to
      Supplier's Lender a security interest in substantially all of its assets,
      including, without limitation, all Merchandise,

                                       9
<PAGE>
      fixtures, equipment and other personal property owned by Supplier and the
      proceeds thereof now or hereafter held by, shipped to or otherwise in
      possession of or controlled by Filene's, and unremitted Supplier's
      Proceeds (collectively, the "Collateral", and as to the Merchandise, the
      "Collateral Merchandise"), and Filene's waives and relinquishes any lien
      rights or claims of any kind against the Collateral. Filene's authorizes
      Supplier to file UCC-1 financing statements covering the Merchandise
      supplied as part of this Agreement, such UCC-1 financing statements to be
      in a form reasonably acceptable to Filene's and Supplier's Lender to
      acknowledge Supplier's and/or Supplier's Lender's interest in the
      Collateral. Upon Supplier's Lender's request, Filene's will execute any
      documents reasonably required to perfect or acknowledge Supplier's
      Lender's security interest or other rights in the Collateral; Filene's
      will execute any documents in a form reasonably acceptable to Filene's
      which indicate that the Merchandise has been consigned to Filene's or that
      Filene's has not granted to any party a lien upon the Collateral, other
      than any liens which have been expressly subordinated to the interests of
      Supplier and Supplier's Lender. Notwithstanding the foregoing, the
      security interests acknowledged under this Agreement and, to the extent
      permitted by the Bankruptcy Code, in any order of the Bankruptcy Court
      approving the agreement are to be deemed perfected without the necessity
      of filing any documents otherwise required under non-bankruptcy law for
      the perfection of security interests in real or personal property, with
      such perfection being binding upon any subsequently appointed trustee
      either under Chapter 11 or any other chapter of the Bankruptcy Code and
      upon all creditors of the debtor.

            13.1.3. It is the intent of Supplier and Filene's to create a true
      consignment arrangement with regard to Supplier's supply of Merchandise to
      Filene's with Supplier as consignor and Filene's as consignee. Supplier's
      ownership of the Merchandise notwithstanding, as a precaution and without
      affecting the intention of the parties to create a true consignment
      arrangement, Filene's, by this Agreement, grants to, and creates in favor
      of, Supplier a continuing security interest in the Consignment Property to
      secure the Consignment Obligations. It is the intention of the parties
      that the precautionary security interest granted by Filene's to Supplier
      hereby is and will be a first priority security interest in the
      Consignment Property.

      13.2. Notice of Identity. Supplier will give written notice to Filene's
from time to time of the identity of the Supplier's Lender, and Filene's shall
be under no obligation hereunder to any party unless and until Filene's shall
have received such notice, and then Filene's sole obligation to Supplier's
Lender are only as expressly provided in Section 13 hereof and to follow such
instructions as to remitting Supplier's Proceeds. Upon receipt by Filene's of
such notice from the Supplier, Filene's will acknowledge only the party
specifically named by Supplier in such notice as Supplier's Lender. Any notice
subsequently given by Supplier and signed by the lender named in the preceding
notice shall revoke any previous notice given by Supplier hereunder. Upon
receipt by Filene's of such subsequent notice, Filene's shall have no obligation
to any party previously named by Supplier as Supplier's Lender.

      13.3. Collateral.

            13.3.1. Filene's agrees that upon receipt of written notice from
      Supplier's Lender referring to this Section 13, Filene's will hold
      Supplier's Proceeds from the Collateral for the account of Supplier's
      Lender and subject to Supplier's Lender's instructions and shall release
      such proceeds only to Supplier's Lender or as otherwise directed by a
      court. Any such payments shall be made free of any set-off, reduction, or
      counterclaim, (including, without limitation, any set-off, reduction or
      counterclaim based upon any alleged breach by Supplier of this Agreement).
      Supplier agrees to indemnify and hold harmless Filene's for complying with
      any notice purporting to be the written notice of Supplier's Lender.

            13.3.2. Upon receipt of Lender's Default Notice (as defined below),
      Filene's agrees to provide Supplier's Lender with all reasonably requested
      reporting regarding the Collateral that it would otherwise provide to
      Supplier.

                                       10
<PAGE>
            13.3.3. Filene's agrees that, in addition to its obligations under
      this Section 13, upon receipt of written notice from Supplier's Lender
      ("Lender's Default Notice") referring to this Section 13.3 that represents
      to Filene's that there is the occurrence and continuance of a default
      under the financing arrangements between Supplier and Supplier's Lender
      and stating the intent of Supplier's Lender to exercise its remedies as a
      result of the occurrence of such default, such Lender's Default Notice
      shall constitute a termination of the Supply Right and Filene's shall hold
      the Supplier's Proceeds for the account of Supplier's Lender and subject
      to the instructions of Supplier's Lender. In that regard, Supplier's
      Lender may elect to immediately remove the Collateral or it may sell the
      then existing inventory of Collateral Merchandise subject to Section 7.5
      for a period of up to ninety (90) days after Filene's receipt of Lender's
      Default Notice (but in no event later than the then current termination
      date of this Agreement) and in connection with such sale, Filene's shall
      comply with its obligations under this Agreement to the same extent as if
      Supplier's Lender were the Supplier. At the end of such sale, and subject
      to the provisions of Section 5 hereof, the Supplier's Lender may repossess
      and remove any remaining Collateral from the Filene's locations, as
      Supplier's Lender in its discretion may elect; provided, however, that
      Supplier's Lender agrees to the removal of such Collateral only in
      accordance with such reasonable limitations on the time and manner of such
      removal as Filene's shall require which limitations are intended to avoid
      disruption of Filene's normal operations or any possible confusion in the
      mind of the public as to whether any of Filene's assets are being removed.
      In connection with any sale of the Collateral Merchandise from Filene's
      premises, all advertising with respect to such sale shall be subject to
      the prior approval of Filene's (which approval shall not be unreasonably
      withheld and given promptly so as not to unreasonably delay the exercise
      of Supplier's Lender's rights). Filene's shall not be deemed to have
      failed to have acted in good faith or unreasonably withheld approval by
      refusing to approve any advertising which refers to any "going out of
      business sale", "liquidation" or similar terms or which could create any
      possible confusion in the mind of the public as to whether any of Filene's
      assets are being liquidated. Upon any removal of the Collateral in
      accordance with this Agreement, Supplier's Lender shall not be liable for
      any diminution in the value of Filene's business which is caused by the
      termination of the Supply Right or the removal or absence of the
      Collateral; provided however, Supplier's Lender does hereby agree to
      indemnify and hold harmless Filene's from (i) all damages and costs of
      defense (including reasonable attorneys" fees) arising from the claims of
      any and all third parties, including, without limitation, Supplier,
      against Filene's for complying with any directions of Supplier's Lender,
      except to the extent Filene's is finally determined by a court of
      competent jurisdiction to have committed willful misconduct or to have
      acted in a grossly negligent manner or in actual bad faith; and (ii) any
      costs, damages or expenses to Filene's tangible property or third party
      claims for personal injury arising as a result of Supplier's Lender
      exercising its rights hereunder.

            13.3.4. Nothing contained herein shall obligate Supplier's Lender to
      undertake any such action, nor shall anything contained herein constitute
      the Supplier's Lender's assumption of any obligations of the Supplier
      under this Agreement. However, to the extent and during the period of
      Supplier's Lender's exercise of control over the Collateral while in
      Filene's stores, Supplier's Lender agrees to abide by the terms hereof as
      they relate to the Collateral and Filene's right to its 20% split of the
      Net Sales.

            13.3.5. Filene's will provide to the Supplier's Lender, as and when
      forwarded or furnished to the Supplier, a copy of any formal notice of any
      breach by Supplier (with the same degree of particularity as Filene's
      provides Supplier) of this Agreement given by Filene's to the Supplier and
      any notice of termination of this Agreement. Filene's acknowledges that
      Supplier's Lender shall have the right but not the obligation to cure any
      such breach within the time frames and/or conditions set forth in this
      Agreement which are otherwise applicable to Supplier.

            13.3.6. Filene's acknowledges and agrees that the Supplier's Lender
      has no obligation to make any loan or advance to the Supplier for the
      purpose of assisting the Supplier in the performance of its obligations
      under this Agreement, including, without limitation, for paying any

                                       11
<PAGE>
      amounts due from the Supplier to Filene's. Filene's is not a beneficiary
      of the financing agreements and shall have no right to enforce the terms
      thereof or assert any claims thereunder.

14. MISCELLANEOUS.

      14.1. Indulgences, Etc. Neither the failure nor any delay on the part of
either party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

      14.2. Confidentiality. The terms of this Agreement are confidential to the
parties hereto and each party agrees not to make any public announcement related
to this Agreement or the relationship of the parties without prior notice to the
other party hereto except as may be required by law.

      14.3. Controlling Law. This Agreement and all questions relating to its
validity, interpretation, performance and enforcement (including, without
limitation, provisions concerning limitations of actions), shall be governed by
and construed in accordance with the laws of the State of Ohio.

      14.4. Notices. All notices, requests, demands and other communications,
required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given, made and received when delivered (personally, by
courier service such as Federal Express, or by other messenger) against receipt
or upon actual receipt of registered or certified mail, postage prepaid, return
receipt requested, addressed as set forth below:

         To Filene's:               Filene's Basement Inc.
                                    12 Gill Street, Suite 1600
                                    Woburn, MA 01801
                                    Attn:  Jim Rudd

                                    and

         with a copy to:            General Counsel
                                    3241 Westerville Road
                                    Columbus, OH  43224

         If to Supplier:            DSW Inc.
                                    4150 East Fifth Avenue
                                    Columbus, OH  43219
                                    Attn: Doug Probst

                                    and

                                    General Counsel
                                    3241 Westerville Road
                                    Columbus, OH 43224

Any party may alter the address to which communications or copies are to be sent
by giving notice of such change of address in conformity with the provisions of
this paragraph for the giving of notice.

                                       12
<PAGE>
      14.5. Arbitration.

            14.5.1. The parties agree that arbitration is the sole and exclusive
      remedy for each of them to resolve and redress any dispute, claim or
      controversy involving the interpretation of this Agreement or the terms,
      conditions or termination of this Agreement. The arbitrator will be
      mutually agreed upon by the parties, and the arbitration will be conducted
      in accordance with the Commercial Arbitration Rules of the American
      Arbitration Association. The parties will have the right to conduct
      discovery for such arbitration pursuant to the Federal Rules of Civil
      Procedure; provided, however, that the arbitrator will have the authority
      to establish an expedited discovery schedule and discovery cut-off point,
      and to resolve any discovery disputes. The arbitrator will have no
      jurisdiction or authority to change any provision of this Agreement by
      alterations of, additions to or subtractions from the terms of this
      Agreement. The arbitrator's sole authority will be to interpret or apply
      any provision(s) of this Agreement or any public law alleged to have been
      violated. The arbitrator will be limited to awarding compensatory damages,
      but, to the extent allowed by law, will have no authority to award
      punitive, exemplary or similar-type damages. The parties intend that any
      arbitration award will be final and binding on them, and that a judgment
      on the award may be entered in any court of competent jurisdiction, and
      enforcement may be had according to the terms of that award. This Section
      will survive the termination or expiration of this Agreement.

            14.5.2. The parties shall share equally the arbitrator's fee and
      other costs associated with any arbitration.

            14.5.3. The parties acknowledge that, because arbitration is the
      exclusive remedy for resolving issues arising under this Agreement,
      neither party may resort to any federal, state or local court or
      administrative agency concerning breaches of this Agreement or any other
      matter subject to arbitration under this Section, and that the decision of
      the arbitrator will be a complete defense to any suit, action or
      proceeding instituted in any federal, state or local court or before any
      administrative agency with respect to any arbitrable claim or controversy.

            14.5.4. The parties each waive the right to have a claim or dispute
      with one another decided in a judicial forum or by a jury.

      14.6. Binding Nature of Agreement. Subject to the provisions hereof
relating to assignments, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assign.

      14.7. Execution of Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the
signatories.

      14.8. Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.

      14.9. Entire Agreement. This Agreement contains the entire understanding
among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements and understanding,
inducements or conditions, express or implied, oral or written, except as herein
contained. The express terms hereof control and supersede any course of
performance and /or

                                       13
<PAGE>
usage of the trade inconsistent with any of the terms hereof. This Agreement may
not be modified or amended other than by an agreement in writing.

      14.10. Paragraph Headings. The paragraph headings in this Agreement are
for convenience only; they form no part of this Agreement and shall not affect
its interpretation.

      14.11. Gender, Etc. Words used herein, regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context indicates is appropriate.

      14.12. Number of Days. In computing the number of days for purposes of any
payments due under this Agreement, all days shall be counted, including
Saturdays, Sundays and holidays; provided, however, that if the final day of any
time period falls on a Saturday, Sunday or holiday on which federal banks are or
may elect to be closed, then the final day shall be deemed to be the next day
which is not a Saturday, Sunday or such holiday.

      14.13. Assignment. Except as provided in Section 14.16, neither the
Supplier nor Filene's may assign or in any other manner transfer by voluntary
act, operation of law or otherwise, its rights hereunder without the written
consent of the other party hereto, provided, however, that Filene's may assign
this Agreement to an affiliate or any entity which acquires substantially all of
its assets.

      14.14. No Conflict. Each party hereto represents to the other that the
entering into of this Agreement and the carrying out of the terms hereof does
not conflict with the terms of any other agreement by which the representing
party is bound.

      14.15. Amendment/Waiver. This Agreement may be modified or amended only in
writing signed by an officer of Filene's and by Supplier. No failure by any
party to enforce any provision of this Agreement or to exercise any right or
remedy resulting from a breach thereof, no acceptance of full or partial payment
or acceptance of performance with the knowledge of the breach of any provision
of this Agreement, and no custom or practice of the parties at variance with the
terms of this Agreement shall be construed as a waiver of such breach, any
provision of this Agreement or other right of such party under this Agreement.
No waiver of any provision of this Agreement shall be effective unless in
writing and signed by the party against whom such waiver is charged. Further,
except to add or delete one or more Covered Stores to the coverage of this
Agreement, this Agreement shall not be amended, revised, supplemented, or
otherwise changed without prior written notice to Supplier's Lender, and, if
such modifications affect Supplier's Lender's rights under this Agreement, such
modifications shall not be effective without the consent of the Supplier's
Lender, which consent shall not unreasonably be withheld or delayed.

      14.16. Third Party Beneficiaries. Filene's acknowledges that Supplier's
Lender is an intended beneficiary of this Agreement, has been collaterally
assigned and granted a security interest in all of Supplier's rights hereunder
and, upon the terms and conditions specified herein, shall have the right to
directly enforce the provisions hereof as though Supplier's Lender stood in
Supplier's shoes. By accepting any of the benefits of this Agreement, Supplier's
Lender agrees to be bound by the provisions hereof relating to Supplier's
Lender.

      14.17. Force Majeure. If an event of Force Majeure prevents Supplier from
carrying out its responsibilities in any Covered Store, Supplier shall not be
deemed in default under this Agreement.

      15. AMENDMENT AND RESTATEMENT. The parties agree that this Agreement
amends and restates the Original Agreement and shall replace the Original
Agreement for all Shoe Departments which are less than 10,000 square feet. For
all Shoe Departments which are equal to or exceed 10,000 square feet, the Combo
Store Supply Agreement, executed contemporaneously herewith as between Supplier
and Filene's, shall control. Notwithstanding the foregoing, nothing herein shall
be deemed to

                                       14
<PAGE>
release or terminate any obligations of the parties which accrued under the
Original Agreement with respect to the Covered Stores subject to this Agreement.

                  [remainder of page intentionally left blank]

                                       15
<PAGE>
      IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
by their duly authorized officers as of the date first above written.

                                        DSW INC.

                                        By:
                                            ------------------------------------
                                        Printed Name: Peter Z. Horvath
                                                      --------------------------
                                        Title:        Executive Vice President
                                               ---------------------------------

                                        FILENE'S BASEMENT INC.

                                        By:
                                            ------------------------------------
                                        Printed Name: James A. McGrady
                                                      --------------------------
                                        Title:        Executive Vice President
                                               ---------------------------------

                                       16
<PAGE>
                                                          Date: January 30, 2005
                                                          -----
                                                          Amendment:
                                                                     -----------

                                    EXHIBIT A
                             COVERED STORE SCHEDULE

Filene's Basement, Inc.
Covered Stores
Licensed Departments

<TABLE>
<CAPTION>
 UNIT            NAME                    STREET ADDRESS                          CITY          STATE          ZIP        SQ. FEET
 ----            ----                    --------------                          ----          -----          ---        --------
<S>       <C>                 <C>                                            <C>               <C>           <C>         <C>
51000     Connecticut Ave.    1133 Connecticut Avenue                        Washington D.C.     DC          20036         1,333
51100     Towson              1238 Putty Hill Ave.                           Towson              MD          21286         2,266
51200     Rockville           11840 Rockville Pike                           Rockville           MD          20852         1,370
51300     Mazza               5300 Wisconsin Avenue (Mazza Gallery)          Washington D.C.     DC          20015         1,586
51500     Broadway            2222 Broadway                                  New York            NY          10024         1,770
51600     Watertown           485 Arsenal Street - Arsenal Mall              Watertown           MA          02172         1,020
51700     Northshore          Northshore Mall - Routes 114 & 128             Peabody             MA          01960           965
51800     Framingham          341 Cochituate Road                            Framingham          MA          01701         1,940
52500     Hyannis             768 Ivanough Road - Capetown Plaza             Hyannis             MA          02601         1,555
52600     Newton              215-227 Needham Street                         Newton              MA          02164         2,588
54000     Manhasset           1400 Northern Boulevard                        Manhasset           NY          11030         2,908
54300     Fresh Meadows       187-04 horace Harding Expressway               Fresh Meadows       NY          11365         1,198
54400     White Plains        13 City Place                                  White Plains        NY          10601         4,636
54700     Union Square        4 Union Square South                           New York            NY          10003         4,291
55700     Braintree           250 Granite Street (South Shore Plaza)         Braintree           MA          02184         1,236
56400     Homestead           280 East Waterfront Drive                      Homestead           Pa          15120         3,228
57000     Chelsea             620 Sixth Avenue (Chelsea)                     New York            NY          10011         2,650
57100     Lenox               3535 Peachtree Rd                              Atlanta             GA          30326         2,970
58000     State Street        One North State Street                         Chicago             IL          60602         3,314
                              Woodfield Villiage Green Shopping Center,
58300     Schaumburg          1470 E Golf Road                               Shaumburg           IL          60173         2,255
58800     N. Michigan Avenue  830 North Michigan Avenue                      Chicago             IL          60611         3,265
59100     Saugus              Square One Mall - Route 1                      Saugus              MA          01906         1,853
                              14th Street N.W. (Space T-3 National Press
59300     National Press      Bld)                                           Washington D.C.     DC          20045         1,147
</TABLE>

FILENE'S BASEMENT INC.                  DSW INC.

By:                                     By:
    -----------------------------           ------------------------------------
Name:  James A. McGrady                 Name:  Peter Z. Horvath
      ---------------------------             ----------------------------------
Title: Executive Vice President         Title: Executive Vice President
       --------------------------              ---------------------------------

                                       17
<PAGE>
                                    EXHIBIT B

                              PREMIUM LOCATION FEE

Filene's Basement, Inc.
Premium Location Fee
Licensed Departments

<TABLE>
<CAPTION>
                                               ANNUAL           MONTHLY
   UNIT                 NAME                    FEE              FEE
   ----                 ----                   ------           -------
<S>         <C>                             <C>               <C>
  51000     Connecticut Ave.                  $149,000         $12,417
  51100     Towson                             $75,000          $6,250
  51200     Rockville                         $147,000         $12,250
  51300     Mazza                             $127,000         $10,583
  51500     Broadway                          $178,000         $14,833
  51600     Watertown                          $54,000          $4,500
  51700     Northshore                         $41,000          $3,417
  51800     Framingham                         $76,000          $6,333
  52500     Hyannis                            $97,000          $8,083
  52600     Newton                            $143,000         $11,917
  54000     Manhasset                         $115,000          $9,583
  54300     Fresh Meadows                      $77,000          $6,417
  54400     White Plains                       $97,000          $8,083
  54700     Union Square                      $316,000         $26,333
  55700     Braintree                          $66,000          $5,500
  56400     Homestead                          $84,000          $7,000
  57000     Chelsea                           $197,000         $16,417
  57100     Lenox                             $124,000         $10,333
  58000     State Street                      $211,000         $17,583
  58300     Schaumburg                         $72,000          $6,000
  58800     N. Michigan Avenue                $278,000         $23,167
  59100     Saugus                             $63,000          $5,250
  59300     National Press                    $115,000          $9,583
                                            ----------        --------
                                            $2,902,000        $241,833
                                            ==========        ========
</TABLE>

                                       18EX-10.44

 

Exhibit 10.44

S U B L E A S E

	 	 	 
	
    
    SUBLESSOR:

    	 	
    JUBILEE LIMITED PARTNERSHIP,
	 	 	
    an Ohio Limited partnership
	 	 	
    1798 FREBIS AVENUE
	 	 	
    COLUMBUS, OHIO 43206-3764
	
    
    SUBLESSEE:

    	 	
    SHONAC CORPORATION,
	 	 	
    an Ohio Corporation
	 	 	
    1675 WATKINS ROAD
	 	 	
    COLUMBUS, OHIO 43207
	
    
    PREMISES:

    	 	
    5516 LEESBURG PIKE
	 	 	
    BAILEYS CROSSROADS
	 	 	
    FAIRFAX, VA 220417

 

TABLE OF CONTENTS

	 	 	 
	
    
    SECTION 1

    	 	
    PREMISES
	
    
    SECTION 2

    	 	
    TERM
	
    
    SECTION 3

    	 	
    COMMENCEMENT DATE
	
    
    SECTION 4

    	 	
    RENEWAL OPTIONS
	
    
    SECTION 5

    	 	
    MINIMUM RENT
	
    
    SECTION 6

    	 	
    PERCENTAGE RENT
	
    
    SECTION 7 INTENTIONALLY DELETED

    	 	
    SECURITY DEPOSIT
	
    
    SECTION 8

    	 	
    RIGHT TO REMODEL
	
    
    SECTION 9

    	 	
    UTILITIES
	
    
    SECTION 10

    	 	
    GLASS
	
    
    SECTION 11

    	 	
    PERSONAL PROPERTY
	
    
    SECTION 12

    	 	
    RIGHT TO MORTGAGE
	
    
    SECTION 13

    	 	
    SUBLEASE OR ASSIGNMENT
	
    
    SECTION 14

    	 	
    COMMON AREAS
	
    
    SECTION 15

    	 	
    OPERATION OF COMMON AREAS
	
    
    SECTION 16

    	 	
    COMMON AREA MAINTENANCE, SUBLESSEE’S SHARE
	
    
    SECTION 17

    	 	
    EMINENT DOMAIN
	
    
    SECTION 18

    	 	
    SUBLESSEE’S TAXES
	
    
    SECTION 19

    	 	
    RISK OF GOODS
	
    
    SECTION 20

    	 	
    USE AND OCCUPANCY
	
    
    SECTION 21

    	 	
    NUISANCES
	
    
    SECTION 22

    	 	
    WASTE AND REFUSE REMOVAL
	
    
    SECTION 23

    	 	
    FIRE AND CASUALTY
	
    
    SECTION 24

    	 	
    SUBLESSOR REPAIRS
	
    
    SECTION 25

    	 	
    SUBLESSEE’S REPAIRS
	
    
    SECTION 26

    	 	
    COVENANT OF PEACEFUL POSSESSION
	
    
    SECTION 27

    	 	
    SUBLESSEE’S AND SUBLESSOR’S INSURANCE; INDEMNITY
	
    
    SECTION 28

    	 	
    REAL ESTATE TAXES
	
    
    SECTION 29

    	 	
    SUBLESSEE’S INSURANCE CONTRIBUTION
	
    
    SECTION 30

    	 	
    FIXTURES

 

	 	 	 
	
    
    SECTION 31

    	 	
    SURRENDER
	
    
    SECTION 32

    	 	
    HOLDING OVER
	
    
    SECTION 33

    	 	
    NOTICE
	
    
    SECTION 34

    	 	
    DEFAULT
	
    
    SECTION 35

    	 	
    WAIVER OF SUBROGATION
	
    
    SECTION 36

    	 	
    LIABILITY OF SUBLESSOR; EXCULPATION
	
    
    SECTION 37

    	 	
    RIGHTS CUMULATIVE
	
    
    SECTION 38

    	 	
    MITIGATION OF DAMAGES
	
    
    SECTION 39

    	 	
    SIGNS
	
    
    SECTION 40

    	 	
    ENTIRE AGREEMENT
	
    
    SECTION 41 INTENTIONALLY DELETED

    	 	
    SUBLESSOR’S LIEN
	
    
    SECTION 42

    	 	
    BINDING UPON SUCCESSORS
	
    
    SECTION 43

    	 	
    HAZARDOUS SUBSTANCES
	
    
    SECTION 44

    	 	
    TRANSFER OF INTEREST
	
    
    SECTION 45

    	 	
    ACCESS TO PREMISES
	
    
    SECTION 46

    	 	
    HEADINGS
	
    
    SECTION 47

    	 	
    NON-WAIVER
	
    
    SECTION 48

    	 	
    SHORT FORM SUBLEASE
	
    
    SECTION 49

    	 	
    REFERENCE TO MASTER LEASE
	
    
    SECTION 50

    	 	
    ESTOPPEL CERTIFICATE

 

S U B L E A S E

     
THIS AGREEMENT OF SUBLEASE, made this 12th day of June,
2000, by and between Jubilee Limited Partnership, an Ohio
limited partnership (hereinafter referred to as
“Sublessor”), with offices at 1798 Frebis Avenue,
Columbus, Ohio 43206-3764 and Shonac Corporation, an Ohio
corporation, dba DSW Shoc Warehouse, with offices at 1675
Watkins Road, Columbus, Ohio 43207 (hereinafter referred to as
“Sublessee”).

W I T N E S S E T H:

SECTION 1. PREMISES

     
(a) Sublessor, in consideration of the rents to be paid and
covenants and agreements to be performed by Sublessee, does
hereby sublease unto Sublessee the premises (hereinafter
referred to as the “premises” or “demised
premises”) in the Baileys Crossroads Shopping Center
(hereinafter referred to as the “Shopping Center”), on
the northeast side of Leesburg Pike at 5516 Leesburg Pike,
Baileys Crossroads, in the City of Fairfax, and State of
Virginia. The location, size, and area of the demised premises
and of the Shopping Center shall be substantially as shown on
Exhibit “A” attached hereto and made a part hereof. A
legal description of the Shopping Center is shown on Exhibit
“A-1” attached hereto and made a part hereof.
Sublessee shall not change the configuration of the Shopping
Center or consent to any proposed change by Landlord which
requires Sublessor’s consent under the Master Lease (as
those terms are defined in Section 49 below) so as to
materially adversely affect access to, visibility of or parking
for the premises without the prior written consent of Sublessee.

     
(b) The demised premises shall have a ground floor area of
approximately 25,955 square feet.

     
SECTION 2. TERM

     
The term of this Sublease shall be for a period of approximately
nine (9) years, beginning on the commencement date (as
hereinafter defined), and expiring on November 30, 2009.

SECTION 3. COMMENCEMENT DATE

     
(a) As herein used, the phrase “commencement
date” shall mean the earlier of: (i) the day Sublessee
opens for business in the demised premises, or (ii) ninety
(90) days after Sublessor has delivered to Sublessee
possession of the demised premises as same are to be
substantially completed by Sublessor and ready for occupancy, as
in (b) below. The anticipated delivery date is within six
(6) months of a fully executed sublease agreement.
Sublessee shall not be required to accept delivery between
11-01-00 and 01-31-01. Should Sublessee not receive possession
by 01-31-01, Sublessee at its

4

 

option may terminate this sublease agreement by notice to
Sublessor at any time prior to delivery of possession of the
demised premises to Sublessee. Notwithstanding the above,
Sublessor shall give Sublessee at least sixty (60) days
advance written notice of its anticipated delivery date, so that
Sublessee might plan accordingly.

     
(b) Possession of the demised premises shall not be deemed
to have been given to Sublessee unless the demised premises are
ready for the installation of Sublessee’s fixtures and
finishing work by Sublessee, and are free of any violation of
laws, ordinances, regulations and building restrictions relating
to the possession or use of or construction upon the demised
premises. Sublessor’s work is listed on Exhibit
“B”, attached hereto and made a part hereof.

     
(c) Prior to the date on which possession is delivered to
Sublessee as aforesaid, Sublessee shall have the right to enter
the demised premises at its own risk rent-free for the purpose
of preparing for its occupancy, installing fixtures and
equipment, and receiving merchandise and other property,
provided that it does not unreasonably interfere with
Sublessor’s construction activities. All work other than
that to be performed by Sublessor is to be done by Sublessee
within ninety (90) days after the date possession of the
demised premises has been delivered to Sublessee, at
Sublessee’s expense in accordance with the provisions of
this Sublease and as set forth in the schedule entitled
Description of Sublessee’s Work and attached hereto as
Exhibit “C” and made a part hereof.

     
(d) From the date upon which the demised premises are
delivered to Sublessee for its work until the commencement date
of the sublease term, Sublessee shall observe and perform all of
its obligations under this Sublease (except its obligation to
operate and to pay minimum rent, percentage rent, its pro rata
share of maintenance costs, provided for in Section 16
hereof, its pro rata share of real estate taxes provided for in
Section 28 hereof and its prorata share of insurance
provided for in Section 29 hereof). In the event Sublessee
fails to open for business within ninety (90) days after
the date possession of the demised premises has been delivered
to Sublessee, Sublessor, in addition to any and all other
available remedies, may require Sublessee to pay to Sublessor,
in addition to all other rent and charges herein, as liquidated
damages and not as a penalty, an amount equal to one-one hundred
eightieth (1/180) of the annual minimum rent for each day such
failure to open continues.

SECTION 4. RENEWAL OPTIONS

     
(a) Provided Sublessor has exercised its renewal option (of
which notice shall also be given to

5

 

Sublessee) as granted in the Master Lease; and provided
Sublessee has fully complied with all of the terms, provisions,
and conditions on its part to be performed under this Sublease
and is not in default under this Sublease, Sublessee may, by
giving written notice to the Sublessor at least fifteen
(15) months on or before the expiration of the original
term of this Sublease, extend such term for a period of ten
(10) year(s) upon the same covenants and agreements as are
herein set forth, except that the minimum rent during the first
renewal term shall be increased to Forty-Seven Thousand Five
Hundred Eighty Four and 17/100 Dollars ($47,584.17) each month.

     
(b) Provided Sublessor has exercised its renewal option as
granted in the Master Lease; and provided Sublessee has fully
complied with all of the terms, provisions and conditions on its
part to be performed under this Sublease, is not in default
under this Sublease and has exercised its first option to renew
hereunder, Sublessee may, by giving written notice to the
Sublessor at least fifteen (15) months on or before the
expiration of the first extended term of this Sublease, extend
such term for an additional period of ten (10) year(s) upon
the same covenants and agreements as the first extended term
except that the minimum rent (as increased pursuant to
subparagraph (a) above) during this second renewal
term shall be further increased Fifty-One Thousand Nine Hundred
Ten Dollars ($51,910.00) each month.

SECTION 5. MINIMUM RENT

     
(a) Sublessee agrees to pay to Sublessor, as minimum rent
for the demised premises, equal consecutive monthly installments
of: (i) Forty-Three Thousand Two Hundred Fifty Eight and
33/100 Dollars ($43,258.33), commencing on the commencement
date, and continuing on the first day of each calendar month
during years one (1) through five (5) of the initial
term of this Sublease; (ii) Forty-Five Thousand Four
Hundred Twenty One and 25/100 Dollars ($45,42 1.25) each
calendar month during years six (6)through the remainder of the
initial term of this Sublease. All such rental shall be payable
to Sublessor in advance, without prior written notice or demand
and without any right of deduction, abatement, counterclaim or
offset whatsoever (unless specifically permitted in this
sublease agreement). As used in this Sublease, the term
“minimum rent” means the minimum rent set forth in
this subparagraph (a).

     
(b) If the Sublease term shall commence on a day other than
the first day of a calendar month or shall end on a day other
than the last day of a calendar month, the minimum rental for
such first or last fractional month shall bc such proportion of
the monthly minimum rental as the number of days in such
fractional month bears to the total number of days in such
calendar month.

6

 

     
(c) Until further notice to Sublessee, all rental payable
under this Sublease shall be payable to Sublessor and mailed to
Sublessor at 1798 Frebis Avenue, Columbus, Ohio 43206-3764.

     
(d) In the event any sums required hereunder to be paid
are not received on or before the fifth (5th) calendar day after
the same are due, then, for each and every late payment,
Sublessee shall immediately pay, as additional rent, a service
charge equal to Fifty Dollars ($50.00). Sublessee shall pay an
additional late charge in the same amount for each additional
seven (7) day period after the same are due until such
payment has been received by Sublessor. The foregoing late
charge is in addition to all default remedies of Sublessor
pursuant to Section 34 below.

SECTION 6. PERCENTAGE RENT

     
(a) Sublessee shall pay to Sublessor as additional rent, a
percentage rental of two percent (2%) annually of the
“gross receipts” that exceed: (i) $12,977,500.00
during Yrs. 1-5; (ii) $13,626,375.00 during Yrs. 6 through
the remainder of the initial term; (iii) $14,275,251.00
during the first renewal term; and (iv) $15,573,000.00
during the second renewal term.

     
(b) For purposes hereof, a sublease year shall consist of a
consecutive twelve (12) calendar month period commencing on
the commencement of the term of this Sublease; provided,
however, that if this Sublease commences on a day other than the
first day of a calendar month, then the first sublease year
shall consist of such fractional month plus the next succeeding
twelve (12) full calendar months, and the last sublease
year shall consist of the period commencing from the end of the
preceding sublease year and ending with the end of the term of
the Sublease, whether by expiration of term or otherwise. In the
event percentage rental shall commence to accrue on a day other
than the first day of a sublease year, the percentage rental for
such sublease year shall be adjusted on a pro rata basis, based
upon the actual number of days in such sublease year.

     
(c) Each sublease year shall constitute a separate
accounting period, and the computation of percentage rental due
for any one period shall be based on the gross receipts for such
sublease year.

     
(d) The term “gross receipts” as
used in this Sublease is hereby defined to mean the gross dollar
aggregate of all sales or rental or manufacture or production of
merchandise and all services, income and other receipts
whatsoever of all business conducted in, at or from any part of
the demised premises, whether for cash, credit, check, charge
account, gift or merchandise certificate purchased or for other
disposition of value regardless of collection. Should any
departments, divisions or parts of Lessee’s business be
conducted by any subleases, concessionaires, licensees,
assignees or others, then there shall

 

be included in Lessee’s “gross sales,” all
“gross sales” of such department, division or part,
whether the receipts be obtained at the demised premises or
elsewhere in the same manner as if such business had been
conducted by Lessee. Gross Receipts shall exclude the following:
(i) any amount representing sales, use, excise or similar
taxes; (ii) the amount of refunds, exchanges or returns by
customers or allowances to customers.

     
(e) The percentage rental, if any, shall be paid within
ninety (90) days after the end of each sublease year,
accompanied by a statement in writing signed by Sublessee
setting forth its gross receipts from the sale of all items for
such sublease year. Sublessee shall keep at its principal
executive offices, where now or hereafter located, true and
accurate accounts of all receipts from the demised premises.
Sublessor, its agents and accountants, shall have access to such
records for the two (2) prior Lease Years at any and all
times during regular business hours for the purpose of examining
or auditing the same. Sublessee shall also furnish to Sublessor
any and all supporting data in its possession relating to gross
sales and any deductions therefrom as Sublessor may reasonably
require. Sublessor agrees to keep any information obtained
therefrom confidential, except as may be required for
Sublessor’s tax returns, or in the event of litigation or
arbitration where such matters are material.

     
(f) Sublessee shall at all times maintain accurate records
which shall be available for Sublessor’s inspection at any
reasonable time.

     
(g) If Sublessor, for any reason, questions or disputes any
statement of percentage rental prepared by Sublessee, then
Sublessor, at its own expense, may employ such accountants as
Sublessor may select to audit and determine the amount of gross
sales for the period or periods covered by such statements. If
the report of the accountants employed by Sublessor shall show
any additional percentage rents payable by Sublessee, then
Sublessee shall pay to Sublessor such additional percentage
rents plus interest at one (1) point over the prime rate,
commencing on the date such percentage rentals should have been
paid, within thirty (30) days after such report has been
forwarded to Sublessee, unless Sublessee shall, within said
thirty (30) day period, notify Sublessor that Sublessee
questions or disputes the correctness of such report. In the
event that Sublessee questions or disputes the correctness of
such report, the accountants employed by Sublessee and the
accountants employed by Sublessor shall endeavor to reconcile
the question(s) or dispute(s) within thirty (30) days after
the notice from Sublessee questioning or disputing the report of
Sublessor’s accountants. In the event that it is finally
determined by the parties that Sublessee has understated
percentage rent for any Sublease year by three percent (3%) or
more,

8

 

Sublessee shall pay the reasonablc cost of the audit.
Furthermore, if Sublessee’s gross sales cannot be verified
due to the insufficiency or inadequacy of Sublessee’s
records, then Sublessee shall pay the cost of the audit. The
cost of any audit resulting from failure to report percentage
rent after written notification of default shall be at the sole
cost of Sublessee.

SECTION 7. SECURITY DEPOSIT -DELETED

SECTION 8. RIGHT TO REMODEL

     
Sublessee may, at Sublessee’s expense, make non-structural
repairs and alterations to the interior of the demised premises
in accordance with all laws and in the exercise of good business
judgement. Subject to any consent requirements of Landlord under
the Master Lease, Sublessee may not make any structural or
exterior changes to the premises without the prior written
consent of Sublessor, which consent shall not be unreasonably
withheld or delayed. Any structural alteration may not diminish
the market value of the demised premises. All plans for such
remodeling shall be submitted to Sublessor for endorsement of
its approval prior to commencement of work. Upon
Sublessor’s request, Sublessee shall be obligated, if it
remodels and/or alters the demised premises, to restore the
demised premises upon vacating the same. Sublessee will
indemnify and save harmless the Sublessor from and against all
mechanics liens or claims by reason of repairs, alterations or
improvements which may be made by Sublessee to the demised
premises. Inasmuch as any such alterations, additions or other
work in or to the demised premises may constitute or create a
hazard, inconvenience or annoyance to the public and other
Sublessees in the Shopping Center, Sublessee shall, if so
directed in writing by Sublessor, erect barricades, temporarily
close the demised premises, or affected portion thereof, to the
public or take whatever measures are necessary to protect the
building containing the demised premises, the public and the
other Sublessees of the Shopping Center for the duration of such
alterations, additions or other work. If Sublessor determines,
in its sole judgment, that Sublessee has failed to take any of
such necessary protective measures, Sublessor may do so and
Sublessee shall reimburse Sublessor for the cost thereof within
ten (10) days after Sublessor bills Sublessee therefor.

     
All such work shall be performed lien free by Sublessee. In the
event a mechanic’s lien is filed against the premises or
the Shopping Center, Sublessee shall discharge or bond off same
within ten (10) days from the filing thereof. If Sublessee
fails to discharge said lien, Sublessor may bond off or pay same
without inquiring into the validity or merits of such lien, and
all sums so advanced shall be paid on demand by Sublessee as
additional rent.

9

 

SECTION 9. UTILITIES

     
The Sublessee agrees to be responsible and pay for all public
utility services rendered or furnished to the demised premises
during the term hereof, including, but not limited to, heat,
water, gas, electric, steam, telephone service and sewer
services, together with all taxes, levies or other charges on
such utility services when the same become due and payable.
Sublessor will use its best efforts to separately meter
utilities. Sublessor shall provide, or cause to be provided, all
such utility services to the premises. Sublessee shall be
responsible for all utility services and costs inside the
premises. Should any utility service not be separately metered,
then Sublessee shall be responsible for its prorata share
thereof as determined from time to time and billed by Sublessor.
Sublessor shall not be liable for the quality or quantity of or
interference involving such utilities unless due directly to
Sublessor’s negligence.

     
During the term hereof or any renewal or extension period,
whether the demised premises are occupied or unoccupied,
Sublessee agrees to maintain heat sufficient to heat the demised
premises so as to avert any damage to the demised premises on
account of cold weather.

     
Sprinkler systems, if any, located in Sublessee’s area
shall be maintained in accordance with National Fire Protection
Association standards to ensure proper operation. Sprinkler
control valves (interior and exterior) located in
Sublessee’s area shall be monitored by supervisory alarm
service. In the event fifty percent (50%) or more of the total
number of sprinkler heads require replacement at any one time as
part of ordinary maintenance, such cost shall be fifty percent
(50%) borne by Sublessor and fifty percent (50%) borne by
Sublessee. Sublessee shall replace all sprinkler heads due to
painting or environmental exposure from Sublessee’s
operations. All other cost of maintaining the sprinkler system
in Sublessee’s area shall be paid by the Sublessee.

SECTION 10. GLASS

     
The Sublessee shall maintain the glass part of the demised
premises, promptly replacing any breakage and fully saving the
Sublessor harmless from any loss, cost or damage resulting from
such breakage or the replacement thereof.

SECTION 11. PERSONAL PROPERTY

     
The Sublessee further agrees that all personal property of every
kind or description that may at any time be in or on the demised
premises shall be at the Sublessee’s sole risk, or at the
risk of those

10

 

claiming under the Sublessee, and that the Sublessor shall not
be liable for any damage to said property or loss suffered by
the business or occupation of the Sublessee caused in any manner
whatsoever.

SECTION 12. RIGHT TO MORTGAGE

     
(a) Sublessee acknowledges that Landlord, pursuant to the
Master Lease, has reserved the right to subject and subordinate
this Sublease at all times to the lien of any deed of trust,
mortgage or mortgages now or hereafter placed upon
Landlord’s interest in the demised premises; provided,
however, that no default by Landlord, under any deed of trust,
mortgage or mortgages, shall affect Sublessee’s rights
under this Sublease, so long as Sublessee performs the
obligations imposed upon it hereunder and is not in default
hereunder, and Sublessee attorns to the holder of such deed of
trust or mortgage, its assignee or the purchaser at any
foreclosure sale. Any such subordination shall be contingent
upon Sublessee receiving a commercially reasonable
non-disturbance agreement. Sublessee shall execute any
instrument presented to Sublessee for the purpose of effecting
such subordination. If Sublessee, within ten (10) days
after submission of such instrument, fails to execute same,
Sublessor is hereby authorized to execute same as
attorney-in-fact for Sublessee. It is a condition, however, to
the subordination and lien provisions herein provided, that
Sublessor shall procure from any such mortgagee an agreement in
writing, which shall be delivered to Sublessee or contained in
the aforesaid subordination agreement, providing in substance
that so long as Sublessee shall faithfully discharge the
obligations on its part to be kept and performed under the terms
of this Sublease and is not in default under the terms hereof,
its tenancy will not be disturbed nor this Sublease affected by
any default under such mortgage.

     
(b) Wherever notice is required to be given to Sublessor
pursuant to the terms of this Sublease, Sublessee will likewise
give such notice to any mortgagee of Sublessor’s interest
in the demised premises upon notice of such mortgagee’s
name and address from Sublessor. Furthermore, such mortgagee
shall have the same rights to cure any default on the part of
Sublessor that Sublessor would have had.

SECTION 13. SUBLEASE OR ASSIGNMENT

     
The Sublessee further covenants and agrees not to enter into
license, purchase or concession agreements or to assign or
sublet the demised premises or any part of same, or in any other
manner transfer, mortgage or pledge the Sublease, its
subleasehold or the demised premises, without the prior written
consent of Sublessor, which consent shall not be unreasonably
withheld or delayed. In the event

11

 

of any such subletting or assignment or other such transfer upon
obtaining Sublessor’s consent, Sublessee shall nevertheless
remain fully and primarily liable hereunder.

SECTION 14. COMMON AREAS

     
Common areas means all areas and facilities in the Shopping
Center provided and so designated by Landlord and made available
by Landlord pursuant to the terms of the Master Lease for the
common use and benefit of tenants and their respective
sublessees of the Shopping Center and their customers, employees
and invitees. Common areas shall include (to the extent the same
are constructed), but not be limited to, the parking areas,
sidewalks, landscaped areas, corridors, stairways, boundary
walls and fences, incinerators, truckways, service roads, and
service areas not reserved for the exclusive use of tenants or
other sublessees.

SECTION 15. OPERATION OF COMMON AREAS

     
(a) Landlord shall, throughout the term hereof, operate and
maintain the common areas including the parking areas for the
use and benefit of the tenants and their respective sublessees
of the Shopping Center and their customers and invitees.
Landlord shall at all times have exclusive control of the common
areas and may at any time and from time to time:
(i) promulgate, modify and amend reasonable rules and
regulations for the use of the common areas, which rules and
regulations shall be binding upon the Sublessee upon delivery of
a copy thereof to the Sublessee; (ii) temporarily close any
part of the common areas, including but not limited to closing
the streets, sidewalks, road or other facilities to the extent
necessary to prevent a dedication thereof or the accrual of
rights of any person or of the public therein;
(iii) exclude and restrain anyone from the use or occupancy
of the common areas or any part thereof except bona fide
customers and suppliers of the tenants and their respective
sublessees of the Shopping Center who use said areas in
accordance with the rules and regulations established by
Landlord; (iv) engage others to operate and maintain all or
any part of the common areas, on such terms and conditions as
Landlord shall, in its sole judgment, deem reasonable and
proper; and (v) make such changes in the common areas as in
its opinion are in the best interest of the Shopping Center,
including but not limited to changing the location of walkways,
service areas, driveways, entrances, existing automobile parking
spaces and other facilities, changing the direction and flow of
traffic and establishing prohibited areas.

     
(b) Sublessee shall keep all common areas free of
obstructions created or permitted by Sublessee. Sublessee shall
permit the use of the common areas only for normal parking and
ingress and egress by

12

 

its customers and suppliers to and from the demised premises. If
in Landlord’s or Sublessor’s opinion unauthorized
persons are using any of the common areas by reason of
Sublessee’s occupancy of the demised premises, Landlord
and/or Sublessor shall have the right at any time to remove any
such unauthorized persons from said areas or to restrain
unauthorized persons from said areas. Landlord, Sublessor,
Sublessee, and others constructing improvements or making
repairs or alterations in the Shopping Center shall have the
right to make reasonable use of portions of the common areas.

SECTION 16. COMMON AREA MAINTENANCE, SUBLESSEE’S
SHARE

     
(a) Sublessee shall initially pay to Sublessor as
additional rental, simultaneously with payment of minimum rental
called for under Section 5, fifty cents ($0.50) per square
foot, payable in equal monthly installments of One Thousand
Eighty One and 46/100 Dollars ($1,081.46), as its estimated
monthly prorata share of the “maintenance cost” for
the operation and maintenance of the common areas.

     
(b) The Maintenance Costs for the common areas shall be
computed in accordance with the terms of the Master Lease.

     
(c) Sublessor shall maintain, or cause Landlord to
maintain, accurate and detailed records of all Maintenance Costs
for the common areas in accordance with generally accepted
accounting principles. Sublessee’s proportionate share of
the Maintenance Costs of the common areas shall be a fraction,
the numerator of which shall be the floor area of the premises
and the denominator of which shall be the gross leasable area
(in square feet) of all leasable space in the Shopping Center.

     
(d) Sublessee’s proportionate share of all Maintenance
Costs shall be computed by Sublessor within ninety
(90) days after the end of each accounting year (which
Sublessor may change from time to time). At this time Sublessor
shall furnish to Sublessee a statement showing in reasonable
detail the actual Maintenance Costs incurred during such
accounting year and Sublessee’s proportionate share thereof
(prorated for any partial Sublease year, with appropriate
adjustments to reflect any change in the floor area of the
premises or the gross leasable area of a building occurring
during such accounting year). To the extent Sublessee’s
share of such costs differs from the sum paid by Sublessee in
respect to such year, the difference shall be billed to and paid
by Sublessee within thirty (30) days after Sublessee’s
receipt of said bill. Sublessee’s estimated monthly
maintenance cost thereafter may be adjusted by written notice
from Sublessor. Notwithstanding the above, Sublessee’s
prorate share shall not exceed that of Sublessor under the
master lease.

13

 

     
(e) If Sublessee, for any reason in the exercise of good
business judgment, questions or disputes any statement of
maintenance costs prepared by Sublessor, then Sublessee, at its
own expense, may employ such accountants as Sublessee may
select to review Sublessor’s books and records solely with
respect to maintenance costs during the prior two (2) Lease
Years to determine the amount of maintenance costs for the
period or periods covered by such statements. If the report of
the accountants employed by Sublessee shall show any overcharge
paid by Sublessee, then Sublessee shall receive a credit from
Sublessor for such difference. Any underpayment shall be paid by
Sublessee. In the event that Sublessee questions or disputes the
correctness of such report, the accountants employed by
Sublessee and the accountants employed by Sublessor shall
endeavor to reconcile the question(s) or dispute(s) within
thirty (30) days after the notice from Sublessee
questioning or disputing the report of Sublessor’s
accountants. In the event that it is finally determined by the
parties that Sublessor has overstated maintenance costs for any
Sublease year by three percent (3%) or more, Sublessor shall pay
the reasonable cost of the audit. Furthermore, if
Sublessor’s maintenance costs cannot be verified due to the
insufficiency or inadequacy of Sublessor’s records, then
Sublessor shall pay the cost of the audit.

SECTION 17. EMINENT DOMAIN

     
(a) In the event the entire premises or any part thereof
shall be taken or condemned either permanently or temporarily
for any public or quasi-public use or purpose by any
competent authority in appropriation proceedings or by any right
of eminent domain, the entire compensation or award therefore,
including subleasehold, reversion and fee, shall belong to the
Sublessor and Sublessee hereby assigns to Sublessor all of
Sublessee’s right, title and interest in and to such award.

     
(b) In the event that only a portion of the demised
premises, not exceeding twenty percent (20%) of same, shall be
so taken or condemned, and the portion of the demised premises
not taken can be repaired within ninety (90) days from the
date of which possession is taken for the public use so as to be
commercially fit for the operation of Sublessee’s business,
the Sublessor at its own expense shall so repair the portion of
the demised premises not taken and there shall be an equitable
abatement of rent for the remainder of the term and/or extended
terms. If the portion of the demised premises not taken cannot
be repaired within ninety (90) days from the date of which
possession is taken so as to be commercially fit for the
operation of Sublessee’s business, then this Sublease shall
terminate and become null and void from the time possession of
the portion taken is required for public use, and from that date
on the parties hereto shall be resubleased from all further
obligations hereunder except as herein stated.

14

 

No other taking, appropriation or condemnation shall cause this
Sublease to be terminated. Any such appropriation or
condemnation proceedings shall not operate as or be deemed an
eviction of Sublessee or a breach of Sublessor’s covenant
of quiet enjoyment.

     
(c) In the event that more than 20% of the demised premises
shall at any time be taken by public or quasi-public use or
condemned under eminent domain, then at the option of the
Sublessor or Sublessee upon the giving of thirty (30) days
written notice (after such taking or condemnation), this
Sublease shall terminate and expire as of the date of such
taking and any prepaid rental shall be prorated as of the
effective date of such termination.

SECTION 18. SUBLESSEE’S TAXES

     
Sublessee further covenants and agrees to pay promptly when due
all taxes assessed against Sublessee’s fixtures,
furnishings, equipment and stock-in trade placed in or on the
demised premises during the term of this Sublease.

SECTION 19. RISK OF GOODS

     
All personal property, goods, machinery, and merchandise in said
demised premises shall be at Sublessee’s risk if damaged by
water, fire, explosion, wind or accident of any kind, and
Sublessor shall have no responsibility therefor or liability for
any of the foregoing and Sublessee hereby resubleases Sublessor
from such liability.

SECTION 20. USE AND OCCUPANCY

     
The demised premises during the term of this Sublease shall be
occupied for the operating and conducting therein of a retail
shoe store or any other lawful retail purpose in accordance with
the terms of the Master Lease. Sublessee shall at all times
conduct its operations on the demised premises in a lawful
manner and shall, at Sublessee’s expense, comply with all
laws, rules, orders, ordinances, directions, regulations, and
requirements of all governmental authorities, now in force or
which may hereafter be in force, which shall impose any duty
upon Sublessor or Sublessee with respect to the business of
Sublessee and the use, occupancy or alteration of the demised
premises. Sublessee shall comply with all requirements of the
Americans with Disabilities Act, and shall be solely responsible
for all alterations within the demised premises in connection
therewith. Sublessee covenants and agrees that the demised
premises shall not be abandoned and that only minor portions of
the demised premises shall be used for office or storage space
in connection with Sublessee’s business conducted in the
demised premises. Without being in default of this Sublease,
Sublessee shall have the right to cease operating

15

 

(go dark) at any time and for whatever reason after the first
(1st) sublease Year. Notwithstanding the foregoing,
Sublessee’s right to vacate (go dark), shall not release or
excuse the Sublessee from any obligations or liabilities,
including the payment of Rent and other charges, under this
Sublease without the express written consent of Sublessor. In
the event Sublessee fails to operate for one hundred twenty
(120) or more consecutive days, Sublessor shall have the
right, effective upon thirty (30) days prior written notice
to Sublessee, to terminate the Sublease as Sublessor’s sole
remedy, provided that if Sublessee recommences operating fully
stocked in substantially all of the premises within such thirty
(30) days, Sublessor’s termination shall be null and
void. In the event Sublessee shall cease operating after the
first sublease year, Sublessor’s sole remedy on account
thereof shall be limited to the right to elect to recapture the
premises and terminate the Sublease and to recover from
Sublessee the unamortized portion of the costs incurred by
Sublessor in performing Sublessor’s Work. Upon payment
thereof by Sublessee, there shall be no further liability of the
parties hereunder. Such termination shall be effective upon
written notice to Sublessee any time prior to Sublessee
reopening for business in the premises. Provided, however, in
the event Sublessor has not so elected to recapture, Sublessee
shall have right to notify Sublessor of Sublessee’s
intention to reopen for business fully stocked in substantially
all of the premises within sixty (60) days, followed by
Sublessee’s actually reopening for business in the premises
within such sixty (60) day period, which notice and actual
reopening shall toll Sublessor’s right to recapture.

SECTION 21. NUISANCES

     
Sublessee shall not perform any acts or carry on any practice
which may injure the demised premises or be a nuisance or menace
to other Sublessees in the Shopping Center.

SECTION 22. WASTE AND REFUSE REMOVAL

     
Sublessee covenants that it will use, maintain and occupy said
demised premises in a careful, safe, lawful and proper manner
and will not commit waste therein. Sublessor or its agent shall
have access at all reasonable times to the demised premises for
purposes of inspecting and examining the condition and
maintenance of the demised premises. Sublessee agrees to remove
all refuse from the demised premises in a timely, clean and
sanitary manner. Sublessee shall provide a refuse collection
container at the rear of the demised premises to accommodate
Sublessee’s refuse and Sublessee shall routinely clean up
around trash containers. Sublessee shall contract with a
licensed/insured refuse

16

 

collection contractor to timely remove refuse therefrom and the
location of the container shall be approved by Sublessor.

SECTION 23. FIRE AND CASUALTY

     
(a) Sublessor or Landlord shall at all times during the
term of this Sublease carry fire, casualty, and extended
coverage insurance on the building, including the structural
components (foundations, floors, walls, windows, structural
supports, roof, HVAC, electrical systems, and plumbing) thereof.
Sublessor and Landlord shall be under no obligation to maintain
insurance on any improvements installed by or for the benefit of
Sublessee’s use of the premises. Sublessor and Landlord may
elect to self-insure their obligations hereunder and/or use
whatever deductibles as Landlord and Sublessor deem appropriate,
in their sole discretion.

     
(b) If the demised premises shall be damaged, destroyed, or
rendered untenantable, in whole or in part, by or as the result
or consequence of fire or other casualty during the term hereof,
Landlord or Sublessor shall repair and restore the same to a
good tenantable condition with reasonable dispatch. During such
period of repair, the rent herein provided for in this Sublease
shall abate (i) entirely in case all of the demised
premises are untenantable; and (ii) proportionately if only
a portion of the demised premises is untenantable and Sublessee
is able to economically conduct its business from the undamaged
portion of the demised premises. The abatement shall be based
upon a fraction, the numerator of which shall be the square
footage of the damaged and unusable area of the demised premises
and the denominator shall be the total square footage of the
demised premises. Said abatement shall cease at such time as the
demised premises shall be restored to a tenantable condition.

     
(c) In the event the damaged premises, because of such
damage or destruction, are not repaired and restored to a
tenantable condition with reasonable dispatch within one hundred
fifty (150) days from the date of receipt of insurance
proceeds for such damage or destruction, Sublessee or Sublessor
may, at their option, terminate this Sublease within sixty
(60) days following such one hundred fifty (150) day
period but prior to the repair and restoration of same by giving
prior written notice to the other party and thereupon Sublessor
and Sublessee shall be released from all future liability and
obligations under this Sublease.

     
(d) If one-third (1/3) or more of the ground floor area of
the demised premises are damaged or destroyed during the last
two (2) years of the original or any extended term of this
Sublease, Sublessor shall have the right to terminate this
Sublease by written notice to Sublessee within sixty
(60) days

17

 

following such damage or destruction, unless Sublessee shall,
within thirty (30) days following receipt of such notice,
offer to extend the term of this Sublease for an additional
period of five (5) years from the date such damage or
destruction is repaired and restored. If Sublessee makes said
offer to extend, Sublessor and Sublessee shall determine the
terms and conditions of said extension within thirty
(30) days thereafter or Sublessee’s offer shall not be
deemed to prevent Sublessor from canceling this Sublease. If
such terms and conditions have been mutually agreed to by the
parties, then Sublessor shall accept Sublessee’s offer and
shall repair and restore the demised premises with reasonable
dispatch thereafter.

SECTION 24. SUBLESSOR REPAIRS

     
(a) Sublessor or Landlord shall keep in good order,
condition, and repair the following: (i) structural
portions of the demised premises; (ii) downspouts;
(iii) gutters; (iv) the roof of the Building of which
the demised premises forms a part; and (v) the plumbing and
sewage system serving the demised premises but located outside
of the demised premises, except (as to all items) for damage
caused by any negligent act or omission of Sublessee or its
customers, employees, agents, invitees, licensees or
contractors, which shall be repaired or replaced as necessary,
at the sole cost and expense of Sublessee. “Structural
portions” shall mean only the following:
(i) foundations; (ii) exterior walls except for
interior faces); (iii) concrete slabs; (iv) the beams
and columns bearing the main load of the roof; and (v) the
floors (but not floor coverings).

     
(b) Notwithstanding the provisions of
Paragraph (a) above, Sublessor and Landlord shall not
be obligated to repair the following: (i) the exterior or
interior of any doors, windows, plate glass, or showcases
surrounding the demised premises or the store front;
(ii) heating, ventilating or air-conditioning equipment in
the demised premises; and (iii) damage to Sublessee’s
improvements or personal property caused by any casualty,
burglary, break-in, vandalism, war or act of God. Sublessor
shall, in any event, have ten (10) days after notice from
Sublessee stating the need for repairs to complete same, or
commence and proceed with due diligence to complete same.
Sublessee expressly hereby waives the provisions of any law
permitting repairs by a Sublessee at Sublessor’s expense.

     
(c) The provisions of this Section 24 shall not apply
in the case of damage or destruction by fire or other casualty
or a taking under the power of eminent domain in which events
the obligations of Sublessor shall be controlled by
Section 23 and Section 17 respectively.

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SECTION 25. SUBLESSEE’S REPAIRS

     
(a) Sublessee shall keep and maintain, at Sublessee’s
expense, all and every other part of the demised premises in
good order, condition and repair, including, by way of example
but not limitation: (i) all subleasehold improvements;
(ii) all heating, ventilating, and air conditioning;
(iii) interior plumbing and sewage facilities;
(iv) all interior lighting; (v) electric signs;
(vi) all interior walls; (vii) floor coverings;
(viii) ceilings; (ix) appliances and equipment;
(x) all doors, exterior entrances, windows and window
moldings; (xi) plate glass; (xii) signs and showcases
surrounding and within the demised premises; (xiii) the
store front; (xiv) sprinkler systems including supervisory
alarm service in accordance with current local and state fire
protection standards. In the event local or state codes do not
require alarm systems, Sublessee shall provide alarm service on
all sprinkler systems to detect water flow and tampering with
exterior and interior main control valves of the sprinkler
system servicing Sublessee’s premises. Moreover, it shall
be Sublessee’s responsibility to contact the Commercial
Property Manager at 1798 Frebis Avenue, Columbus, Ohio
43206-3764, (614) 445-8461, in the event the sprinkler
system in the demised premises is ever shut off for any reason,
and advise same of any damage occasioned or caused by the
actions of Sublessee, its agents, invitees, or employees, and/or
as a result of Sublessee’s repair obligations hereunder.

     
(b) If Sublessor deems any repair which Sublessee is
required to make hereunder to be necessary, Sublessor may demand
that Sublessee make such repair immediately. If Sublessee
refuses or neglects to make such repair and to complete the same
with reasonable dispatch, Sublessor may make such repair and
Sublessee shall, on demand, immediately pay to Sublessor the
cost of said repair, together with interest at ten percent (10%)
per annum. Sublessor shall not be liable to Sublessee for any
loss or damage that may accrue to Sublessee’s stock or
business by reason of such work or its results.

     
(c) Neither Sublessee nor any of its contractors are
permitted access to or permitted to perform alterations of any
kind to the roof of the building.

     
(d) Sublessee shall pay promptly when due the entire cost
of work in the demised premises undertaken by Sublessee so that
the demised premises and the Shopping Center shall at all times
be free of liens for labor and materials arising from such work;
to procure all necessary permits before undertaking such work;
to do all of such work in a good and workmanlike manner,
employing materials of good quality; to perform such work only
with contractors previously reasonably approved of in writing by
Sublessor; to comply with all governmental requirements; and to
save the Sublessor and its

19

 

agents, officers, employees, contractors and invitees harmless
and indemnified from all liability, injury, loss, cost, damage
and/or expense (including reasonable attorneys’ fees and
expenses) in respect of any injury to, or death of, any person,
and/or damage to, or loss or destruction of, any property
occasioned by or growing out of such work.

SECTION 26. COVENANT OF PEACEFUL POSSESSION

     
Sublessor shall put Sublessee into complete and exclusive
possession of the demised premises, and if Sublessee shall pay
the rental and perform all the covenants and provisions of this
Sublease to be performed by the Sublessee, Sublessee shall,
during the term hereby demised, freely, peaceably, and quietly
enjoy and occupy the full possession of the demised premises and
the common facilities of the Shopping Center, subject, however,
to the terms and conditions of this Sublease.

SECTION 27. SUBLESSEE’S AND SUBLESSOR’S
INSURANCE; INDEMNITY

     
(a) Casualty Insurance. Sublessee shall carry such
insurance against loss of its property in, on or about the
demised premises by fire and such other risks as are covered by
all risk and extended coverage property insurance or other
hazards as Sublessee deems necessary. Sublessor shall not be
liable for any damage to Sublessee’s property in, on or
about the demised premises caused by fire or other insurable
hazards regardless of the nature or cause of such fire or other
casualty, and regardless of whether any negligence of Sublessor
or Sublessor’s employees or agents contributed thereto.
Sublessee expressly releases Sublessor of and from all liability
for any such damage. Sublessee agrees that its insurance policy
or policies shall include a waiver of subrogation recognizing
this resublease from liability.

     
(b) Public Liability Insurance. Sublessee agrees to procure
and maintain during the demised term a policy or policies of
liability insurance, with product and/or completed operations
liability and blanket contractual coverage, written by a
responsible insurance company or companies (which may be written
to include the demised premises in conjunction with other
premises owned or operated by Sublessee) insuring Sublessee
against any and all losses, claims, demands or actions for
injury to or death of any one or more persons and for damage to
property in any one occurrence in the demised premises to the
limit of not less than $1,000,000.00 and $2,000,000.00 general
aggregate policy limit arising from Sublessee’s conduct and
operation of its business in the demised premises, $500,000.00
limit for tire and legal liability, and $1,000,000.00 limit for
products and/or completed operations. Sublessee shall furnish to
Sublessor certificates evidencing the continuous existence of
such insurance coverage, which must also name Sublessor as an
additional insured. All insurance companies must be

20

 

licensed to do business in the state where the premises are
located. Certificates of insurance will be provided at the time
this Sublease is executed and twenty (20) days prior to
expiration of the policy. Certificates of insurance are to
specify notification to Sublessor of cancellation or termination
of policy not less than ten (10) days prior to cancellation
or termination.

     
(c) Additional Insurance. Sublessee agrees to provide a
comprehensive boiler and machinery policy on a repair or
replacement cost basis with an admitted, reputable insurance
carrier covering property damage, business interruption and
extra expense as a result of a loss from boiler(s), pressure
vessel(s), HVAC equipment, or miscellaneous electrical apparatus
within or servicing the demised premises. The deductible for
property damage shall not exceed Five Thousand Dollars
($5,000.00) per occurrence. Business interruption deductible may
not exceed twenty-four (24) hours. The limits for loss
shall be no less than the replacement cost of the structure plus
betterments and improvements thereon, furniture, fixtures,
equipment and inventory together with property of others in the
care, custody and control of Sublessee. Business interruption
limits shall be for the actual loss sustained.

     
(d) Miscellaneous Insurance. Sublessee agrees to provide
and keep in force at all times worker’s compensation
insurance complying with the law of the state in which the
premises are located. Sublessee agrees to defend, indemnify and
hold harmless Sublessor from all actions or claims of
Sublessee’s employees or employee’s family members.
Sublessee agrees to provide a certificate as evidence of proof
of worker’s compensation coverage.

     
With respect to any alterations or improvements by Sublessee,
Sublessee shall maintain contingent liability and builder’s
risk coverage naming Sublessor as an additional named insured.
If Sublessee hires contractors to do any improvements on the
premises, each contractor must provide proof of worker’s
compensation coverage on its employees and agents to Sublessor.

     
(e) During the term of this Sublease, Sublessor or Landlord
shall, at their sole cost and expense, provide and maintain or
cause to be provided and maintained with respect to the
premises, insurance on the common areas, the Sublessee’s
store building and all other improvements in the Shopping Center
in which the premises are situated. The Sublessor covenants and
agrees that said insurance shall include protection against all
the hazards covered by fire and extended coverage form of
insurance policy and shall be in amounts which, in the event of
damage or destruction, will yield funds adequate to restore the
said improvements to at least the condition existing immediately
prior to any such damage or destruction. Neither Sublessee nor
any of its affiliates or subtenants shall be liable for any loss
or

21

 

damage, regardless of cause, resulting from fire, flood, act of
God or other casualty. Sublessor shall also obtain or cause
Landlord to obtain general comprehensive liability insurance for
coverage and limits at least equal to that set forth in
Section 27(b) for all portions of the Shopping Center
(other than the premises or those areas insured by other
lessees), including the common areas, protecting Sublessee for
any and all claims for damages to persons or property or loss of
life or property occurring upon, in or about the common areas
and the remainder of the Shopping Center. Sublessor or Landlord,
as the case may be, may use commercially reasonable deductibles
as such party customarily carries in the conduct of its
business; however, Sublessor or Landlord, as the case may be,
shall be responsible for all liabilities not covered by
deductibles or self-insured retention levels.

     
(f) Indemnity. Sublessee shall indemnify Sublessor,
Sublessor’s agents, employees, officers or directors,
against all damages, claims and liabilities arising from any
alleged products liability or from any accident or injury
whatsoever caused to any person, firm or corporation during the
demised term in the demised premises, unless such claim arises
from a breach or default in the performance by Sublessor of any
covenant or agreement on its part to be performed under this
Sublease or the negligence of Sublessor. The indemnification
herein provided shall include all reasonable costs, counsel
fees, expenses and liabilities incurred in connection with any
such claim or any action or proceeding brought thereon.

     
(g) Sublessor shall indemnify Sublessee, Sublessee’s
officers, directors, employees and agents against all damages,
claims and liabilities arising from any accident or injury
whatsoever caused to any person, firm or corporation during the
demised term in the common areas of the Shopping Center, unless
such claim arises from a breach or default in the performance by
Sublessee of any covenant or agreement on Sublessee’s part
to perform under this Sublease or the negligence of Sublessee.
The indemnification herein provided shall include all reasonable
costs, counsel fees, expenses and liabilities incurred in
connection with any such claim or any action or proceeding
brought thereon.

SECTION 28. REAL ESTATE TAXES

     
Sublessee shall pay Sublessee’s Proportionate Share (as
hereinafter defined) of any real estate taxes imposed upon the
Shopping Center for each sublease year included within the
period commencing with the Commencement Date and ending with the
expiration of the term of this Sublease. For each sublease year,
“Sublessee’s Proportionate Share” of the real
estate taxes upon the Shopping Center (including the Common
Areas) shall be the product of such taxes multiplied by a
fraction, the numerator

22

 

of which shall be the ground floor area (expressed in square
feet) of the Demised Premises and the denominator of which shall
be the gross leasable floor area (expressed in square feet) of
the Shopping Center.

     
For the purpose of this Sublease, the term “real estate
taxes” shall include all amounts payable as real estate
taxes under the Master Lease.

     
The real estate taxes for any sublease year shall be the real
estate taxes for the tax year terminating during said sublease
year. If any sublease year shall be greater than or less than
twelve (12) months, or if the real estate tax year shall be
changed, an appropriate adjustment, shall be made. If there
shall be more than one taxing authority, the real estate taxes
for any period shall be the sum of the real estate taxes for
said period attributable to each taxing authority. If, upon the
assessment day for real estate taxes for any tax year fully or
partly included within the term of this Sublease, a portion of
such assessment shall be attributable to buildings in the
process of construction, a fair and reasonable adjustment shall
be made to carry out the intent of this section.

     
Sublessor shall submit to Sublessee true copies of the real
estate tax bill for each tax year or portion of a tax year
included within the term of this Sublease and shall bill
Sublessee for the amount to be paid by Sublessee hereunder. Said
bill shall be accompanied by a computation of the amount payable
by Sublessee and such amount shall be paid by Sublessee within
thirty (30) days after receipt of said bill.

     
Should the State of Pennsylvania or any political subdivision
thereof or any governmental authority having jurisdiction
thereof, impose a tax and/or assessment (other than an income or
franchise tax) upon or against the rentals payable hereunder, in
lieu of or in addition to assessments levied or assessed against
the demised premises, or Shopping Center, then such tax and/or
assessment shall be deemed to constitute a tax on real estate
for the purpose of this section. Notwithstanding the above,
Sublessee’s prorata share of real estate taxes shall not
exceed a pro rata share of Sublessor’s expenses therefor
pursuant to the Master Lease.

SECTION 29. SUBLESSEE’S INSURANCE CONTRIBUTION

     
Sublessee shall pay as additional rent, Sublessee’s
Proportionate Share (as defined in Section 28 above) of the
premiums for the insurance maintained by Sublessor on all
buildings and improvements, as well as liability insurance for
the Shopping Center, including the common areas, for each
sublease year during the term of this Sublease, or,
alternatively, all amounts maintained therefor by Landlord under
the Master Lease. The premiums for the first and last sublease
years shall be prorated. Sublessee

23

 

shall pay Sublessee’s Proportionate Share of such premiums
annually upon demand for such payment by Sublessor.
Sublessee’s Proportionate Share thereof shall be paid by
Sublessee within thirty (30) days after Sublessor’s
demand therefor. Notwithstanding the above, Sublessee’s
prorata share of insurance costs shall not exceed a pro rata
share of Sublessor’s expense therefor pursuant to the
Master Lease.

SECTION 30. FIXTURES

     
Provided that Sublessee shall repair any damage caused by
removal of its property and provided that the Sublessee is not
in default under this Sublease, Sublessee shall have the right
to remove from the demised premises all of its signs, shelving,
electrical, and other fixtures and equipment, window reflectors
and backgrounds and any and all other trade fixtures which it
has installed in and upon the demised premises.

SECTION 31. SURRENDER

     
The Sublessee covenants and agrees to deliver up and surrender
to the Sublessor the physical possession of the demised premises
upon the expiration of this Sublease or its termination as
herein provided in as good condition and repair as the same
shall be at the commencement of the original term, loss by fire
and/or ordinary wear and tear excepted, and to deliver all of
the keys to Sublessor or Sublessor’s agents.

SECTION 32. HOLDING OVER

     
There shall be no privilege of renewal hereunder (except as
specifically set forth in this Sublease) and any holding over
after the expiration by the Sublessee shall be from day to day
on the same terms and conditions (with the exception of rental
which shall be prorated on a daily basis at twice the daily
rental rate of the most recent expired term) at Sublessor’s
option; and no acceptance of rent by or act or statement
whatsoever on the part of the Sublessor or his duly authorized
agent in the absence of a written contract signed by Sublessor
shall be construed as an extension of the term or as a consent
for any further occupancy.

SECTION 33. NOTICE

     
Whenever under this Sublease provisions are made for notice of
any kind to Sublessor, it shall be deemed sufficient notice and
sufficient service thereof if such notice to Sublessor is in
writing, addressed to Sublessor at 1798 Frebis Avenue, Columbus,
Ohio 43206-3764, or at such address as Sublessor may notify
Sublessee in writing, and deposited in the United States mailed
by registered or certified mail, return receipt requested, with
postage prepaid or Federal Express, Express Mail or such other
expedited

24

 

mail service as normally results in overnight delivery, with a
copy of same sent in like manner to President, Real Estate, 1800
Moler Road, Columbus, Ohio 43207. Notice to Sublessee shall be
sent in like manner to 1675 Watkins Road, Columbus, Ohio 43207.
All notices may be effective upon receipt or refusal of receipt.
Either party may change the place for service of notice by
notice to the other party.

SECTION 34. DEFAULT

     
(a) Elements of Default: The occurrence of any one or more
of the following events shall constitute a default of this
Sublease by Sublessee:

     
1. Sublessee fails to pay any monthly installment of
minimum rent and/or additional rent within ten (10) days
after the same shall be due and payable and, for the first two
(2) times in any twelve (12) month period, within five
( 5 ) days after receipt of written notice thereof;

     
2. Sublessee fails to perform or observe any term,
condition, covenant or obligation required to be performed or
observed by it under this Sublease for a period of twenty
(20) days after notice thereof from Sublessor; provided,
however, that if the term, condition, covenant or obligation to
be performed by Sublessee is of such nature that the same cannot
reasonably be cured within twenty (20) days and if
Sublessee commences such performance or cure within said twenty
(20) day period and thereafter diligently undertakes to
complete the same, then such failure shall not be a default
hereunder if it is cured within a reasonable time following
Sublessor’s notice, but in no event later than forty-five
(45) days after Sublessor’s notice.

     
3. If Sublessee refuses to take possession of the demised
premises at the delivery of possession date.

     
4. A trustee or receiver is appointed to take possession of
substantially all of Sublessee’s assets in, on or about the
demised premises or of Sublessee’s interest in this
Sublease (and Sublessee or any guarantor of Sublessee’s
obligations under this Sublease does not regain possession
within sixty (60) days after such appointment); Sublessee
makes an assignment for the benefit of creditors; or
substantially all of Sublessee’s assets in, on or about the
demised premises or Sublessee’s interest in this Sublease
are attached or levied upon under execution (and Sublessee does
not discharge the same within sixty (60) days thereafter).

     
5. A petition in bankruptcy, insolvency, or for
reorganization or arrangement is filed by or against Sublessee
or any guarantor of Sublessee’s obligations under this
Sublease pursuant to any

25

 

Federal or state statute, and, with respect to any such petition
filed against it, Sublessee or such guarantor fails to secure a
stay or discharge thereof within sixty (60) days after the
filing of the same.

     
(b) Sublessor’s Remedies: Upon the occurrence of any
event of default, Sublessor shall have the following rights and
remedies, any one or more of which may be exercised without
further notice to or demand upon Sublessee:

     
1. Sublessor may re-enter the demised premises and cure any
default of Sublessee, in which event Sublessee shall reimburse
Sublessor for any cost and expenses which Sublessor may incur to
cure such default; and Sublessor shall not be liable to
Sublessee for any loss or damage which Sublessee may sustain by
reason of Sublessor’s action.

     
2. Sublessor may terminate this Sublease or
Sublessee’s right to possession under this Sublease as of
the date of such default, in which event: (a) neither
Sublessee nor any person claiming under or through Sublessee
shall thereafter be entitled to possession of the demised
premises, and Sublessee shall immediately thereafter surrender
the demised premises to Sublessor; (b) Sublessor may
re-enter the demised premises and dispose Sublessee or any other
occupants of the Premises by force, summary proceedings,
ejectment or otherwise, and may remove their effects, without
prejudice to any other remedy which Sublessor may have for
possession or arrearages in rent; and (c) notwithstanding a
termination of this Sublease, Sublessor may re-let all or any
part of the demised premises for a term different from that
which would otherwise have constituted the balance of the term
of this Sublease and for rent and on terms and conditions
different from those contained herein, whereupon Sublessee shall
immediately be obligated to pay to Sublessor as liquidated
damages the difference between the rent provided for herein and
that provided for in any sublease covering a subsequent
re-letting of the demised premises, for the period which would
otherwise have constituted the balance of the term of this
Sublease, together with all of Sublessor’s costs and
expenses for preparing the demised premises for re- letting,
including all repairs, Sublessee finish improvements,
broker’s and attorney’s fees, and all loss or damage
which Sublessor may sustain by reason of such termination,
re-entry and re-letting, it being expressly understood and
agreed that the liabilities and remedies specified herein shall
survive the termination of this Sublease. Notwithstanding a
termination of this Sublease by Sublessor, Sublessee shall
remain liable for payment of all rentals and other charges and
costs imposed on Sublessee herein, in the amounts, at the times
and upon the conditions as herein provided. Sublessor shall
credit against such liability of the Sublessee all amounts
received by Sublessor from such re-letting after first

26

 

reimbursing itself for all reasonable costs incurred in curing
Sublessee’s defaults and re-entering, preparing and
refinishing the demised premises for re-letting, and re-letting
the demised premises.

     
3. Upon termination of this Sublease pursuant to
Section 34(b)2, Sublessor may recover possession of the
demised premises under and by virtue of the provisions of the
laws of the State of Pennsylvania, or by such other proceedings,
including reentry and possession, as may be applicable.

     
4. Any damage or loss of rent sustained by Sublessor may be
recovered by Sublessor, at Sublessor’s option, at the time
of the reletting, or in separate actions, from time to time, as
said damage shall have been made more easily ascertainable by
successive relettings, or at Sublessor’s option in a single
proceeding deferred until the expiration of the term of this
Sublease (in which event Sublessee hereby agrees that the cause
of action shall not be deemed to have accrued until the date of
expiration of said term) or in a single proceeding prior to
either the time of reletting or the expiration of the term of
this Sublease.

     
5. In the event of a breach by Sublessee of any of the
covenants or provisions hereof, Sublessor shall have the right
of injunction and the right to invoke any remedy allowed at law
or in equity as if reentry, summary proceedings, and other
remedies were not provided for herein. Mention in this Sublease
of any particular remedy shall not preclude Sublessor from any
other remedy, in law or in equity. Sublessee hereby expressly
waives any and all rights of redemption granted by or under any
present or future laws in the event of Sublessee being evicted
or dispossessed for any cause, or in the event of Sublessor
obtaining possession of the demised premises by reason of the
violation by Sublessee of any of the covenants and conditions of
this Sublease or other use.

     
(c) Additional Remedies and Waivers: The rights and
remedies of Sublessor set forth herein shall be in addition to
any other right and remedy now or hereinafter provided by law
and all such rights and remedies shall be cumulative. No action
or inaction by Sublessor shall constitute a waiver of a Default
and no waiver of Default shall be effective unless it is in
writing, signed by the Sublessor.

     
(d) Default by Sublessor. Any failure by Sublessor to
observe or perform any provision, covenant or condition of this
Sublease to be observed or performed by Sublessor, if such
failure continues for thirty (30) days after written notice
thereof from Sublessee to Sublessor, shall constitute a default
by Sublessor under this Sublease, provided, however, that if the
nature of such default is such that the same cannot reasonably
be cured within a thirty (30) day period, Sublessor shall
not be deemed

27

 

to be in default if it shall commence such cure within such
thirty (30) day period and thereafter rectify and cure such
default with due diligence.

     Sublessee’s Remedies. In the
event of default by the Sublessor, Sublessee shall have the
option to cure said default. Sublessor shall reimburse Sublessee
for the reasonable costs incurred by Sublessee in curing such
default within thirty (30) days after invoice therefor by
Sublessee, together with reasonable evidence supporting such
invoiced amount. Sublessee shall also have any and all rights
available under the laws of the state in which the leased
premises are situated.

SECTION 35. WAIVER OF SUBROGATION

     
Sublessor and Sublessee, and all parties claiming under each of
them, mutually resublease and discharge each other from all
claims and liabilities arising from or caused by any casualty or
hazard covered or required hereunder to be covered in whole or
in part by insurance coverage required to be maintained by the
terms of this Sublease on the demised premises or in connection
with the Shopping Center or activities conducted with the
demised premises, and waive any right of subrogation which might
otherwise exist in or accrue to any person on account thereof.
All policies of insurance required to be maintained by the
parties hereunder shall contain waiver of subrogation provisions
so long as the same are available.

SECTION 36. LIABILITY OF SUBLESSOR: EXCULPATION

     
(a) Except with respect to any damages resulting from the
gross negligence of Sublessor, its agents, or employees,
Sublessor shall not be liable to Sublessee, its agents,
employees, or customers for any damages, losses, compensation,
accidents, or claims whatsoever. The foregoing notwithstanding,
it is expressly understood and agreed that nothing in this
Sublease contained shall be construed as creating any liability
whatsoever against Sublessor personally, and in particular
without limiting the generality of the foregoing, there shall be
no personal liability to pay any indebtedness accruing hereunder
or to perform any covenant, either express or implied, herein
contained, or to keep, preserve or sequester any property of
Sublessor, and that all personal liability of Sublessor, to the
extent permitted by law, of every sort, if any, is hereby
expressly waived by Sublessee, and by every person now or
hereafter claiming any right or security hereunder; and that so
far as the parties hereto are concerned, the owner of any
indebtedness or liability accruing hereunder shall look solely
to the demised premises and the Shopping Center for the payment
thereof.

     
(b) I f the Sublessee obtains a money judgment against
Sublessor, any of its officers, directors,

28

 

shareholders, partners, or their successors or assigns under any
provisions of or with respect to this Sublease or on account of
any matter, condition or circumstance arising out of the
relationship of the parties under this Sublease,
Sublessee’s occupancy of the building or Sublessor’s
ownership of the Shopping Center, Sublessee shall be entitled to
have execution upon any such final, unappealable judgment only
upon Sublessor’s fee simple or subleasehold estate in the
Shopping Center (whichever is applicable) and not out of any
other assets of Sublessor, or any of its officers, directors,
shareholders or partners, or their successor or assigns; and
Sublessor shall be entitled to have any such judgment so
qualified as to constitute a lien only on said fee simple or
subleasehold estate. Notwithstanding the above, Sublessee shall
have the right to offset any final, unappealable judgement
against 25% of all rentals if not paid to Sublessee by Sublessor
within thirty (30) days thereafter.

     
(c) It is expressly agreed that nothing in this Sublease
shall be construed as creating any personal liability of any
kind against the assets of any of the officers, directors,
members, partners or shareholders of Sublessee, or their
successors and assigns (excluding fraud and/or negligence of any
such individual beyond the scope of such individual’s
employment by Sublessee).

SECTION 37. RIGHTS CUMULATIVE

     
Unless expressly provided to the contrary in this Sublease, each
and every one of the rights, remedies and benefits provided by
this Sublease shall be cumulative and shall not be exclusive of
any other of such rights, remedies and benefits or of any other
rights, remedies and benefits allowed by law.

SECTION 38. MITIGATION OF DAMAGES

     
Notwithstanding any of the terms and provisions herein contained
to the contrary, Sublessor and Sublessee shall each have the
duty and obligation to mitigate, in every reasonable manner, any
and all damages that may or shall be caused or suffered by
virtue of defaults under or violation of any of the terms and
provisions of this Sublease agreement committed by the other.

SECTION 39. SIGNS

     
No signs, whether building, free-standing, pylon or other signs,
shall be placed within the Shopping Center except as such sign
shall comply with sign criteria established by Landlord and with
the prior written consent of Sublessor (not to be unreasonably
withheld) and by Landlord in accordance with the terms of the
Master Lease after sign drawings have been submitted to
Sublessor by Sublessee. Sublessor represents that Sublessee
shall have exterior building and pylon signage.

29

 

SECTION 40. ENTIRE AGREEMENT

     
This Sublease shall constitute the entire agreement of the
parties hereto; all prior agreements between the parties,
whether written or oral, are merged herein and shall be of no
force and effect. This Sublease cannot be changed, modified, or
discharged orally but only by an agreement in writing signed by
the party against whom enforcement of the change, modification
or discharge is sought.

SECTION 41. SUBLESSOR’S LIEN — DELETED BY
INTENTION

SECTION 42. BINDING UPON SUCCESSORS

     
The covenants, conditions, and agreements made and entered into
by the parties hereto shall be binding upon and inure to the
benefit of their respective heirs, representatives, successor
and assigns.

SECTION 43. HAZARDOUS SUBSTANCES

     
During the term of this Sublease, Sublessee shall not suffer,
allow, permit or cause the generation, accumulation, storage,
possession, resublease or threat of resublease of any hazardous
substance or toxic material, as those terms are used in the
Comprehensive Environmental Response Compensation and Liability
Act of 1980, as amended, and any regulations promulgated
thereunder, or any other present or future federal, state or
local laws, ordinances, rules, and regulations. Sublessee shall
indemnify and hold Sublessor harmless from any and all
liabilities, penalties, demands, actions, costs and expenses
(including without limitation reasonable attorney fees),
remediation and response costs incurred or suffered by Sublessor
directly or indirectly arising directly from Sublessee’s
tenancy. Such indemnification shall survive expiration or
earlier termination of this Sublease. At the expiration or
sooner termination hereof, Sublessee shall return the demised
premises to Sublessor in substantially the same condition as
existed on the date of commencement hereof free of any hazardous
substances in, on or from the demised premises. The Sublessor
hereby represents and warrants that: (i) it has not used,
generated, discharged, released or stored any hazardous
substances on, in or under the Shopping Center and has received
no notice and has no knowledge of the presence in, on or under
the Shopping Center of any such hazardous substances;
(ii) to Sublessor’s knowledge there have never been
any underground storage tanks at the Shopping Center, whether
owned by the Sublessor or its predecessors in interest;
(iii) to Sublessor’s knowledge there have never been
accumulated tires, spent batteries, mining spoil, debris or
other solid waste (except for rubbish and containers for normal
scheduled disposal in compliance with all applicable laws) in,
on or under the Shopping Center; (iv) it has not spilled,
discharged or leaked petroleum products other than de minimis
quantities in connection with the

30

 

operation of motor vehicles on the Shopping Center; (v) to
Sublessor’s knowledge, there has been no graining, filling
or modification of wetlands (as defined by federal, state or
local law, regulation or ordinance) at the Shopping Center; and
(vi) to Sublessor’s knowledge there is no asbestos or
asbestos-containing material in the leased premises. The
representations and warranties set forth in this subparagraph
shall apply to any contiguous or adjacent property owed by the
Sublessor. Sublessor hereby indemnifies Sublessee for any and
all loss, cost, damage or expense to Sublessee resulting from
any misrepresentation or breach of the foregoing representations
and warranties.

     
If any such hazardous substances are discovered at the Shopping
Center (unless introduced by the Sublessee, its agents or
employees) or if any asbestos or asbestos containing material is
discovered in the subleased premises, and removal, encapsulation
or other remediation is required by applicable laws, the
Sublessor immediately and with all due diligence and at no
expense to the Sublessee shall take all measures necessary to
comply with all applicable laws and to remove such hazardous
substances or asbestos from the Shopping Center and/or
encapsulate or remediate such hazardous substances or asbestos,
which removal and/or encapsulation or remediation shall be in
compliance with all environmental laws and regulations, and the
Sublessor shall repair and restore the Shopping Center at its
expense. From the date such encapsulation, remediation and
restoration is complete, the rent due hereunder shall be reduced
by the same percentage as the percentage of the subleased
premises which, in the Sublessee’s reasonable judgement,
cannot be safely, economically or practically used for the
operation of the Sublessee’s business. Anything herein to
the contrary notwithstanding, if in the Sublessee’s
reasonable judgement, such removal, encapsulation, remediation
and restoration cannot be completed within one hundred eighty
(180) days or the same is not actually completed by
Sublessor within such one hundred eighty (180) day period
following the date such hazardous substances or asbestos are
discovered, and such condition materially adversely affects
Sublessee’s ability to conduct normal business operations
in the premises, then the Sublessee may terminate this Sublease
by written notice to the Sublessor within thirty (30) days
after such 180 day period, which notice shall be effective
on Sublessor’s receipt thereof. Sublessor shall comply with
OSHA 29 CFR 1910.1001 (j) to notify tenants, including
Sublessee, of asbestos related activities in the subleased
premises and the Shopping Center including, but not limited to,
selection of the certified/licensed asbestos abatement
contractor, scope of the abatement work, and final clearance
testing procedures and results.

31

 

SECTION 44. TRANSFER OF INTEREST

     
If Sublessor should sell or otherwise transfer its interest in
the demised premises, upon an undertaking by the purchaser or
transferee to be responsible for all the covenants and
undertakings of Sublessor, Sublessee agrees that Sublessor shall
thereafter have no liability to Sublessee under this Sublease or
any modifications or amendments thereof, or extensions thereof,
except for such liabilities which might have accrued prior to
the date of such sale or transfer of its interest by Sublessor.

SECTION 45. ACCESS TO PREMISES

     
Sublessor and its representatives shall have free access to the
demised premises at all reasonable times for the purpose of:
(i) examining the same or to make any alterations or
repairs to the demised premises that Sublessor may deem
necessary for its safety or preservation; (ii) exhibiting
the demised premises for sale or mortgage financing;
(iii) during the last three (3) months of the term of
this Sublease, for the purpose of exhibiting the demised
premises and putting up the usual notice “to rent”
which notice shall not be removed, obliterated or hidden by
Sublessee, provided, however, that any such action by Sublessor
shall cause as little inconvenience as reasonably practicable
and such action shall not be deemed an eviction or disturbance
of Sublessee nor shall Sublessee be allowed any abatement of
rent, or damages for an injury or inconvenience occasioned
thereby.

SECTION 46. HEADINGS

     
The headings are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope
or intent of this Sublease.

SECTION 47. NON-WAIVER

     
No payment by Sublessee or receipt by Sublessor or its agents of
a lesser amount than the rent in this Sublease stipulated shall
be deemed to be other than on account of the stipulated rent nor
shall an endorsement or statement on any check or any letter
accompanying any check or payment of rent be deemed an accord
and satisfaction and Sublessor or its agents may accept such
check or payment without prejudice to Sublessor’s right to
recover the balance of such rent or pursue any other remedy in
this Sublease provided.

SECTION 48. SHORT FORM SUBLEASE

     
This Sublease shall not be recorded, but a short form sublease,
which describes the property herein demised, gives the term of
this Sublease and refers to this Sublease, shall be executed by
the parties hereto, upon demand of either party and such short
form sublease may be recorded by Sublessor

32

 

or Sublessee at any time either deems it appropriate to do so.
The cost and recording of such short form sublease shall belong
to the requesting party.

SECTION 49. REFERENCE TO MASTER LEASE

     
Sublessor is the owner of the tenant’s interest under a
lease dated the 28th day of December, 1973 (the “Master
Lease”), a copy of which is attached hereto as Exhibit
“D”. Sublessee and Sublessor shall adhere to all
requirements of the Master Lease, and Sublessor agrees that it
shall not modify the Master Lease so as to materially adversely
impair Sublessee’s rights hereunder. Sublessor hereby
agrees to indemnify and hold Sublessee harmless on account of
any direct loss, cost of expense incurred by Sublessee on
account of a default by Sublessor under the Master Lease.

SECTION 50. ESTOPPEL CERTIFICATE

     
At any time and from time to time upon not less than ten
(10) business day’s prior notice by Sublessor or
Sublessee, the other party shall deliver a statement in writing
addressed to the requesting party certifying ( i ) that this
Sublease is unmodified and in full force and effect (or if there
have been modifications, that the same is in full force and
effect as modified and stating the modifications),
(ii) whether the term has commenced and rent shall have
become payable hereunder, and if so, the dates to which they
have been paid, (iii) whether or not, to such party’s
knowledge, the requesting party is in default in performance of
any of the terms of this Sublease, and if so, specifying such
default of which it may have knowledge, (iv) whether
Sublessee has accepted possession of the subleased premises,
(v) whether either party has made any claim against the
other under this Sublease, and if so, the nature thereof,
(vi) whether there exist any offset or defenses against
enforcement of any of the terms of this Sublease upon the part
of Sublessee to be performed, and if so, specifying the same;
and (vii) such other matters as either party may reasonably
request of the other.

     
IN WITNESS WHEREOF, the parties hereto have executed this
Sublease the day and year first above written.

33

 

Signed and Acknowledged in the presence of:

	 	 	 	 	 
	 	 	
    SUBLESSOR:

    SCHOTTENSTEIN STORES CORPORATION
	 
	 	 	
    BY:	 	
    /s/ Jay Schottenstein
	 	 	 	 	 
	 	 	 	 	
    Jay Schottenstein
	 
	
    /s/ Edward K. [ILLEGIBLE]	 	
    ITS: Chairman
	 	 	 
	
    /s/ Barbara [ILLEGIBLE]	 	 	 	 
	 	 	 	 	 
	 
	 	 	
    SUBLESSEE:

    SHONAC CORPORATION,

    an Ohio corporation
	 
	 	 	
    BY:	 	
    /s/ John Rossler
	 	 	 	 	 
	 	 	 	 	
    John Rossler
	 
	
    /s/ Tracy L. Snow	 	
    ITS: Executive V.P., COO
	 	 	 
	 
	
    /s/ Mary [ILLEGIBLE]	 	 	 	 
	 	 	 	 	 

	 	 	 	 	 	 	 
	
    
    STATE OF OHIO

    	 	
    :	 	 	 	 
	 	 	
    :	 	
    SS.	 	 
	
    
    COUNTY OF FRANKLIN

    	 	
    :	 	 	 	 

     
The foregoing instrument was acknowledged before me this 5th day
of June, 2000, by Jay Schottenstein, Chairman of Schottenstein
Stores Corporation, a Delaware corporation, for and on behalf of
said corporation.

	 	 	 
	 	 	
    /s/ Barbara Pugh
	 	 	 
	
    
    (NOTARIAL SEAL)

    	 	
    Notary Public
	
    BARBARA PUGH

    NOTARY PUBLIC, STATE OF OHIO

    MY COMMISSION EXPIRES JUNE 1, 2002	 	 

	 	 	 	 	 	 	 
	
    
    STATE OF OHIO

    	 	
    :	 	 	 	 
	 	 	
    :	 	
    SS.	 	 
	
    
    COUNTY OF FRANKLIN

    	 	
    :	 	 	 	 

     
The foregoing instrument was acknowledged before me this 12th
day of June, 2000, by John Rossler, Executive V.P., COO of
Shonac Corporation, an Ohio corporation, for and on behalf of
said corporation.

	 	 	 
	 	 	
    /s/ Tracy L. Snow
	 	 	 
	 	 	
    Notary Public

    

    Tracy L. Snow

    NOTARY PUBLIC - STATE OF OHIO

    My Commission Expires 3/15/01

34

 

 

	 	 	 	 
	 	 
	
    
    

    WALTER L. PHILLIPS

    INCORPORATED

    

    CIVIL ENGINEERS

    LAND SURVEYORS

    PLANNERS

     
DIRECTORS

    WALTER L. PHILLIPS, P.E.

    CHAIRMAN OF THE BOARD

    W. LEE PHILLIPS, JR., P.E.

    PRESIDENT

    ROBERT A. KINSEY, P.E.

    VICE PRESIDENT

     
ASSOCIATE

    JERRY A. McKNIGHT, C.L.E.

    

    [ILLEGIBLE] W BROAD STREET

    FALLS CHURCH, VA [ILLEGIBLE]

    [ILLEGIBLE]

    	 	 	
    

    Description of the Property of Sunset Development corporation of
    Northern Virginia, Mason District, Fairfax County, Virginia.

    
     “Beginning at a point in
    the north line of Leesburg Pike, Virginia Route 7, as
    widened, said point marks the southwest corner of
    L. P. Corporation thence with the east line of said
    L. P. Corporation and then continuing with the east
    line of Hardin Corporation, N 19°, 18’ 50”
    E, 611.54 feet to a point marking the northeast corner of
    the Hardin Corporation in the south line of the Armada
    Corporation; thence with the south line of the Amanda
    Corporation and continuing with the south line of Payne,
    S 61° 32’ 20” E, 423.31 feet to a corner to
    Payne; thence continuing with the west line of Payne,
    S 19° 18’ 50” W, 614.54 feet to a
    point in the north line of Leesburg Pike, Virginia Route 7,
    as widened, marking the southwest corner of Payne; thence with
    the said north line of Leesburg Pike, Virginia Route 7, as
    widened, N 61° 8’ 20” W,
    423.80 feet to the beginning and containing 5.8817
    acres.”

    

                    
                  
                   
                    
                  
                   
                    
                  /s/ Walter L. Phillips

    
                    
                  
                   
                    
                  
                   
                    
                  Walter L. Phillips, C.L.S.

    
                    
                  
                   
                    
                  
                   
                    
                  December 10, 1973

	 	 	Exhibit A-1

(Description of Property)

 

LEASE

Walter J. Hodges

and

Joseph P. Smyth,

Landlord

and

Hechinger Company

Tenant

  Opened — 11/17/74

Lease Commencement

  Date — 12/1/74

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	Paragraph		 	Subject	 	Page	
	 		 	 	 	 	
	 	1	 	 	
    Demised Premises	 	 	1	 
	 	2	 	 	
    Term	 	 	2	 
	 	3	 	 	
    Rent	 	 	4	 
	 	4	 	 	
    Use of Premises	 	 	10	 
	 	5	 	 	
    Taxes	 	 	13	 
	 	6	 	 	
    Construction of Improvements	 	 	16	 
	 	7	 	 	
    Repairs and Alterations	 	 	21	 
	 	8	 	 	
    Compliance with Laws	 	 	22	 
	 	9	 	 	
    Public Easements	 	 	24	 
	 	10	 	 	
    Mechanics’ Liens	 	 	24	 
	 	11	 	 	
    Net Lease	 	 	25	 
	 	12	 	 	
    Insurance	 	 	26	 
	 	13	 	 	
    Indemnification	 	 	29	 
	 	14	 	 	
    Fire or Casualty	 	 	31	 
	 	15	 	 	
    Eminent Domain	 	 	33	 
	 	16	 	 	
    Quiet Enjoyment	 	 	35	 
	 	17	 	 	
    Default	 	 	35	 
	 	18	 	 	
    Assignment on Subletting	 	 	37	 
	 	19	 	 	
    Certificates	 	 	37	 
	 	20	 	 	
    Notice	 	 	38	 
	 	21	 	 	
    Right of Access	 	 	39	 
	 	22	 	 	
    Waiver	 	 	39	 
	 	23	 	 	
    Limitation of Liability	 	 	40	 
	 	24	 	 	
    Bankruptcy of Landlord	 	 	41	 
	 	25	 	 	
    Construction of Lease	 	 	41	 
	 	26	 	 	
    Recording	 	 	41	 
	 	27	 	 	
    Real Estate Commissions	 	 	41	 
	 	28	 	 	
    Right of First Refusal	 	 	42	 
	 	29	 	 	
    Time of Essence	 	 	44	 
	 	30	 	 	
    Personal Property	 	 	44	 
	 	31	 	 	
    Zoning Laws	 	 	44	 
	 	32	 	 	
    Denial of Access	 	 	44	 
	 	33	 	 	
    Waiver of Subrogation	 	 	44	 
	 	34	 	 	
    Non-disturbance	 	 	45	 
	 	35	 	 	
    Signs	 	 	45	 
	 	36	 	 	
    Arbitration	 	 	45	 
	 	37	 	 	
    Consent Required	 	 	47	 
	 	38	 	 	
    Non Disturbance — Present Deed of Trust	 	 	47	 
	 	39	 	 	
    Successors and Assigns	 	 	 	 

 

LEASE

     
This Lease is made this 28th day of December, 1973, by and
between Walter J. Hodges and Joseph P. Smyth, c/o Walter J.
Hodges, 4697 South 34th Street, Arlington, Virginia 22206,
hereinafter together referred to as “Landlord”, and
Hechinger Company, a District of Columbia corporation having its
executive offices at 901 17th Street, N.E.,
Washington, D.C., hereinafter referred to as
“Tenant”.

     
Witnesseth, that for and in consideration of the mutual
covenants of the parties, it is agreed as follows:

     
1.     (a) Landlord does hereby
lease and demise to Tenant and Tenant does hereby take and rent
from Landlord, upon the covenants and conditions contained
herein, all of that parcel of land, located on the northeast
side of Leesburg Pike, Fairfax County, Virginia, as outlined in
red on the survey entitled “Plat Showing the Property of
Sunset Development Corporation of Northern Virginia”, dated
December 5, 1973, prepared by Walter L. Phillips, Inc., a
copy of which is attached hereto and made a part hereof and
marked Exhibit “A”, containing 5.8817 acres, more or
less, and as further described by metes and bounds on
Exhibit “A-1” attached hereto and made part
hereof.

     
    (b) Together with all the
improvements to be constructed thereon, and all easements,
rights, ways, waters and appurtenances belonging or incidental
thereto, and all right, title and interest of Landlord in and to
the streets, alleys and public highways through or adjoining the
same, which, together

 

with the parcel of land described in Paragraph 1 (a) above,
shall collectively be referred to herein as the “demised
premises”.

     
2. The initial term of this Lease shall begin on the
commencement date as herein defined and fully expire
25 years thereafter; provided, however, that if the
commencement date is not the first day of a month, then the
initial term hereof shall fully expire 25 years after the
first day of the first full month immediately following the
commencement date. Promptly after the commencement date, the
parties shall execute a recordable supplement hereto stating the
commencement and expiration dates.

     
The commencement date shall be the earlier to occur of
(a) the date on which Tenant first opens for business on
the demised premises or (b) March 1, 1975. Tenant
covenants and agrees to apply for site plan approval on or
before December 28, 1973 and for a building permit as soon
thereafter as reasonably practical with the appropriate Fairfax
County, Virginia authorities and to submit with such
applications all necessary plans. Landlord agrees to execute
where necessary any permit applications. Landlord agrees to
deliver possession of the parcel of land hereby leased to Tenant
within thirty-five days after receipt by Landlord of written
notice that Tenant desires possession. Such thirty-five day
period shall begin on the next Wednesday following receipt by
Landlord of such notice. Tenant shall not be required to accept
possession of the land prior to the expiration of thirty days
after the beginning of the thirty-five day period. Landlord
agrees that it shall have levelled to the

-2-

 

[Illegible] the date Landlord delivers possession of the
land to Tenant. Following the date hereof, Tenant shall have a
right of entry on the demised premises to conduct tests, studies
and surveys.

     
Both Landlord and Tenant shall have the right to cancel this
Lease in the event that Tenant is unable to obtain a building
permit from the applicable governmental agencies on or before
April 1, 1974 or June 1, 1974 if such date is extended
as herein-after provided, by giving written notice to the other
within ten days after April 1, 1974 or June 1, 1974,
as the case may be, whereupon both parties shall be relieved
from further liability hereunder. Tenant agrees to notify
Landlord in writing of the filing of the aforesaid applications
within five day of such filings. In no event shall Landlord be
required to deliver possession of the land to Tenant prior to
the obtaining by Tenant of the building permits. In the even
that Tenant has not obtained the building permit by
April 1, 1974 but is continuing diligently and in good
faith to obtain said permit, the date of April 1, 1974
shall be extended to June 1, 1974.

     
Provided Tenant shall not be in default herein, Tenant shall
have the option to extend the term of this Lease upon all of the
same terms, covenants and conditions for one additional term of
ten years. If Tenant exercises its extension option, Tenant
shall have the option to extend the term hereof for a second
additional term of ten years. If Tenant exercises its second
extension option, Tenant shall have the option to extend the
term hereof for a third additional term of ten years. Such

-3-

 

[illegible] shall be continuously [illegible]
[illegible] exercised by Tenant unless Tenant shall have
given to Landlord written notice that Tenant does not wish to
extend the term of this Lease at least one year prior to the
commencement date of the particular option period. Provided
Tenant is not in default and Tenant has not previously notified
Landlord that Tenant does not wish to extend the term of this
Lease, Tenant may exercise more than one option at one time by
giving written notice to Landlord.

			
	 	3. 	
    Tenant covenants and agrees to pay to the Landlord during the
    term of this Lease annual net minimum rent, herein-after
    referred to as “minimum rent”, equal to the greater of
    (a) or (b) as hereinafter set forth:

			
	 	(a) 	
    The sum of $300,000.00.

			
	 	(b) 	
    $166,572.00, plus twelve percent times the amount paid by
    Landlord for the “Landlord’s cost” (as such term
    is defined in Paragraph 6 hereof). The phrase “term of this
    Lease”, as used herein, shall mean the original twenty-five
    year term plus any extension options exercised by Tenant.

     
Such minimum rent shall be paid in advance in equal monthly
installments on the first day of each and every month during
each “lease year” (as such term is hereinafter
defined) of the term of this Lease, except that minimum rent for
the period from the date the term hereof commences, if such date
is not the first day of a month, to the first day of the
following month shall be due and payable on the date said term
commences. Minimum rent for less than a one month period and
less than a

-4-

 

full twelve month lease year shall be adjusted pro rata. Until
such time as Landlord’s cost is determined, Tenant shall
pay a temporary monthly minimum rental of $25,000.00. At such
time as the actual minimum rent is determined, any necessary
adjustments shall be made between the parties within ten days
after the date upon which Landlord’s cost is determined. It
is the intention of the parties hereto that the minimum rent to
be paid hereunder shall be paid to Landlord absolutely net
without deduction of any nature whatsoever, unless otherwise
specifically provided for in this Lease. The parties agree to
execute a Lease Amendment setting forth the finally determined
annual minimum rent. Tenant shall have the right to audit
Landlord’s cost. The cost of such audit shall be paid by
Tenant, provided that Landlord will reimburse Tenant for audit
costs if Tenant discovers an error prejudicial to Tenant
equalling 2% (or more) of the correct Landlord’s cost.
Disputes in determining Landlord’s cost shall be determined
by arbitration pursuant to Paragraph 36 of this Lease.

     
Notwithstanding any provision hereof to the contrary, if the
commencement date is after December 1, 1974, Tenant shall
pay Landlord, on the commencement date, a sum equal to $456.36
multiplied by the number of days elapsing from and including
December 1, 1974 to, but not including, the commencement
date.

     
As additional rent (hereinafter called “percentage
rent”), Tenant agrees to pay to Landlord the amount, if
any, by which two percent (2%) of Tenant’s “gross
sales” (as such term is hereinafter defined) on the
“Occupied Portion” (as such term is hereinafter
defined) for each lease year during the term of this Lease shall
exceed the amount of minimum rent paid by Tenant during the
particular lease year. The term “lease year” shall
mean each period of February

-5-

 

1 through January 31 except that the first lease year shall
be the period from the commencement date of this Lease through
the next January 31; except that the last lease year shall
be the period from the January 31st next preceding the
expiration date hereof (as same may be extended) through said
expiration date. If Tenant’s fiscal year changes during the
term of this Lease, the parties will cooperate and attempt to
adjust the lease year to coincide with Tenant’s fiscal year.

     
The term “gross sales”, as used herein, means the
total amount charged by Tenant or anyone in Tenant’s behalf
or by concessionaires of licensees of Tenant in connection with
any and all sales (including telephone sales) of merchandise and
service to patrons and customers, made or rendered on, in or
from the Occupied Portion, including sales of merchandise
shipped from other locations on orders taken in or through the
Occupied Portion, or by persons reporting to the Occupied
Portion, whether or not such amounts shall be for cash or on
credit, whether paid or unpaid, collected or uncollected. Each
charge or sale upon installment or credit shall be treated as a
sale for the full price in the month during which such charge or
sale shall be made, irrespective of the time when or if Tenant
shall receive payment (whether full or partial) therefor.

     
There shall, however, be deducted or excluded there-from the
following to the extent that the same shall be included

-6-

 

in Tenant’s computation of gross sales:

			
	 	(1) 	
    All credits and refunds made to customers for merchandise
    returned or exchanged.
	 
	 	(2) 	
    All sums and credits received in settlement of claims for loss
    or damage to merchandise sold as aforesaid.
	 
	 	(3) 	
    All sales or excise taxes imposed by any governmental body on
    such sales and services which taxes are added to the price
    therefor or collected from the patron or customer and paid by
    Tenant to such governmental authority. No franchise or capital
    stock tax and no income or similar tax based upon income or
    profits as such shall be deducted from gross sales in any event
    whatever.
	 
	 	(4) 	
    Transfers of merchandise from the Occupied Portion to other
    stores or warehouses of Tenant.
	 
	 	(5) 	
    Accommodation sales, such as sales of postage stamps, government
    bonds, savings stamps or similar items where no profit is being
    made.
	 
	 	(6) 	
    Returns of merchandise to manufacturers, or suppliers.
	 
	 	(7) 	
    Sale of trade fixtures or equipment.
	 
	 	(8) 	
    Service or other charges payable by the customer because an item
    is sold on credit instead of for cash and any and all charges
    payable by customers for delivery or merchandise.

-7-

 

      
(9) Exclusion or deduction for amount of gift certificates
redeemed in cash or for merchandise.

     
(10) Deduction of deposits returned to customers.

     
(11) Services (such as repairs and delivery) rendered at
cost.

     
(12) Amounts allowed to customers for merchandise or other
things of value traded to Tenant.

     
(13) The amount of sales made from vending machines,
excluding the portion thereof paid to Tenant as a commission,
selling strictly accommodation or convenience products for
Tenant’s customers or employees such as, but not limited
to, cigarettes, stamps and soda. In the event that Tenant shall
sell any of its product lines from vending machines, the total
sales thereof shall be included in gross sales.

     
(14) Sales and receipts of subtenants not located in the
Occupied Portion and sub-rental income to Tenant from subtenants
on the demised premises.

     
(15) Commissions, bonuses and other fees paid by licensees
or concessionaires to Tenant.

     
Tenant shall record at the time of sale all receipts from sales
or other transactions whether cash or credit in a cash register
or in cash registers having a cumulative total which shall be
sealed. Tenant’s bookkeeping procedures shall be consistent
with good business practice. Tenant shall keep or cause to be
kept on the demised premises, or at its main office address as
set forth on the first page hereof, or at such other

-8-

 

location in the Washington area where Tenant may store its
records, for a period of not less than three (3) years after the
end of the lease year to which they have reference, full, true
and accurate records of all such gross sales, credits, refunds
and other operations to which Landlord or Landlord’s
representative shall have access at any and all times during
regular business hours for the purpose of examining or auditing
the same without expense to Tenant and Tenant shall also furnish
to Landlord any and all statements, information, copies of
income tax returns which show separately financial data for the
Occupied Portion and other supporting data relating to such
gross sales as and when Landlord may reasonably require. Without
limiting the generality of the foregoing, Tenant agrees to keep
for at least three (3) years following the end of each lease
year the gross income, sales, use and occupation tax returns
with respect to said lease years and all pertinent original
sales records. Errors, if any, in any statement submitted by the
Tenant shall be promptly adjusted and settled. If any error in
the submission of gross sales shall amount to a difference of 3%
more of the correct gross sales, the reasonable costs, including
the full amount of bills rendered to Landlord by its then
regularly employed certified public accountant for such
examination of Tenant’s books shall be paid by Tenant. The
furnishing by Tenant of any willfully or grossly inaccurate
statement of gross sales may be deemed, at Landlord’s sole
option and discretion, a violation or breach of or default under
this Lease. Landlord agrees to keep any information obtained
from Tenant as confidential, except that Landlord may

-9-

 

give such information to any mortgagee or party secured by deed
of trust, or to a prospective purchaser of the demised premises,
and except in connection with any litigation or arbitration
proceedings between the parties, or as may be required by any
competent judicial or other legally constituted authority. If
Tenant disputes Landlord’s determination of gross sales
after audit by Landlord, such dispute shall be resolved by
arbitration pursuant to Paragraph 36 hereof.

     
Within sixty days after the end of each lease year, Tenant shall
submit to Landlord a written statement of Tenant’s gross
sales for the preceding lease year certified by a certified
public accountant and Tenant shall pay simultaneously with the
submission of such statement any percentage rent which may be
due and payable.

     
4. The term “Occupied Portion”, as used herein,
shall mean the part or parts (if any) of the demised premises
which Tenant may elect to occupy at any time or from time to
time during the term of this Lease. Tenant agrees to operate a
Hechinger store on the Occupied Portion substantially similar to
and under the same trade name as the majority of other stores
may be operated at any time or from time to time during the term
of this Lease by Tenant in the Metropolitan Washington area.
Tenant may use the Occupied Portion for any lawful purpose
whatsoever, including, but not limited to, the sale of such
merchandise and services as Tenant may from time to time desire,
provided, however, that in the event Tenant
substantially changes the nature of its business from the type
of business in which Tenant is presently engaged in the
Washington Metropolitan area,

-10-

 

Landlord shall have the right to cancel this Lease if Tenant is
not willing to adjust the percentage rent rate to that rate
customarily paid by tenants operating businesses similar to the
business operation to which Tenant has changed, such adjustment
to be effective as of the date of Tenant so changed the nature
of its business. Upon such termination, the rent and other
charges payable hereunder by Tenant shall be apportioned and
adjusted to the date Tenant surrenders possession of the demised
premises and both parties shall be relieved of further liability
under this Lease.

     
In the event of a dispute as to whether Tenant has substantially
changed its business or as to the percentage rent rate
applicable to such changed business, the dispute shall be
referred to arbitration pursuant to the provision of Paragraph
36 of this Lease. In the event that it is determined by such
arbitration that Tenant has substantially changed the nature of
its business and Tenant is unwilling to increase the percentage
rent rate to the new rate determined by the arbitrators as
applicable to such changed business and Landlord does not
exercise its right to cancel this Lease within ninety (90) days
after Tenant notified Landlord of its election to not abide by
the decision of the arbitrators with respect to the new
percentage rate, then the percentage rent rate shall remain at
the rate in effect at the time of the dispute. If Landlord shall
be entitled to, but does not exercise, its rights to cancel this
Lease within ninety (90) days after Tenant notified Landlord of
its election to not pay the new rate, as aforesaid, then
Landlord shall no longer have the right of cancellation and
Tenant shall have the right to conduct whatever business it may
desire and otherwise use the demised premises

-ll-

 

for any lawful purpose without being required to pay a different
percentage rate than the rate in effect at the time of the
dispute.

     
At all times (if any) during the term hereof in which there is
an Occupied Portion, Tenant shall actively and diligently
operate its business in a high grade and reputable manner in the
Occupied Portion maintaining in the Occupied Portion a full
staff of employees and a full and complete inventory of
merchandise during business hours (unless prevented from doing
so by fire, strikes or other conditions beyond the reasonable
control of Tenant).

     
“Business hours” shall mean those hours maintained
from time to time during the term of this Lease by the majority
of other Hechinger stores operating in the Washington
Metropolitan area.

     
In the event that Hechinger Company shall at any time during the
term of this Lease operate less than a 60,000 gross square foot
retail facility on the demised premises under the trade name
requirements set forth above, then, that portion of the minimum
rent equal to the ratio of square footage of building area which
is not being used by Hechinger as a retail operation to 60,000
square feet shall be adjusted to the “Consumer Price Index,
United States and the Selected Area, Washington
(1967 - 1969 = 100) all items” from the
date such event occurs. For example, if, on February 1, 1985,
the Hechinger retail operation is reduced to 45,000 square feet,
one-fourth of the minimum rent shall be

-ll a-

 

adjusted to the Index for the remainder of the lease term or
until such time as Tenant again operates at least a 60,000
square foot Hechinger store, whichever shall be the first to
occur. The portion of minimum rental so affected shall be
adjusted at the end of every three lease years. The first
adjustment shall be made by multiplying the affected portion of
the minimum rent by a fraction, the numerator of which will be
such Index for the month of January immediately preceding the
date on which such adjustment takes place and the denominator of
which shall be such Index for the month of January one year
prior to the January used in the numerator. For example, the
formula would be 15,000/60,000 x $300,000 x Index, January,
1984/Index, January, 1983. Future adjustments at the end of each
three lease years would use the Index for the month of January
immediately preceding the date of adjustment as the numerator
and January, 1984 as the denominator. Tenant acknowledges that
this adjustment would take effect even if a sublessee of Tenant
operated a retail facility in part of the original buildings
constructed on the demised premises. Under no circumstances
shall the minimum rent be reduced below the original minimum
rent (or portion thereof so affected) as a result of any such
adjustment. If such Index shall be discontinued, then any
similar successor consumer price index of the U.S. Department of
Labor, or successor agency thereto for the Washington area shall
be used. If there is no such similar successor index and the
parties cannot agree upon a successor index or formula, or if
there shall be disagreement as to any other provision in this
Paragraph 4, then the matter shall be referred to arbitration as
hereinafter provided pursuant to paragraph 36 hereof.

-12-

 

     
5.     Tenant will, at Tenant’s
cost and expense, bear, pay and discharge, or cause to be borne,
paid and discharged, on or before the last day upon which the
same may be paid without interest or penalty for the late
payment thereof, all taxes, assessments, sewer rents, water
rents and charges, duties, impositions, license and permit fees,
charges for public utilities of any kind, and payments and other
charges of every kind and nature whatsoever, ordinary or
extraordinary, foreseen or unforeseen, general or special (all
of which are hereinafter sometimes collectively referred to as
“Impositions”) which shall, pursuant to present or
future law or otherwise, during the term hereby granted be
levied, charged, assessed or imposed upon, or grow or become due
and payable out of or for, or become or have become a lien on,
the demised premises or any part thereof, or any buildings or
improvements now or hereafter located thereon, or the
appurtenances thereto, or the sidewalks, streets or vaults
adjacent thereto, or any franchises as may be appurtenant to the
use and occupation of the demised premises; it being the
intention of the parties hereto that the rents reserved herein
shall be received and enjoyed by Landlord as a net sum free of
all such Impositions, except income taxes assessed against
Landlord, franchise, estate, succession, inheritance or transfer
taxes of Landlord, or any tax or charge in replacement or
substitution of the foregoing or of a similar character,
provided, however, that if at any time during the term of this
Lease the then

-13-

 

prevailing method of taxation or assessment shall be changed so
that the whole or any part of the Impositions therefore payable
by Tenant as above provided, shall instead be levied, charged,
assessed or imposed wholly or partially on the rents received by
Landlord from the demised premises, or shall otherwise be
imposed against Landlord in the form of a franchise tax or
otherwise, the Tenant shall pay all such levies, charges,
assessments, impositions, taxes and other substituted charges,
on or before the last day upon which the same may be paid
without interest or penalty for the late payment thereof.

     
Tenant shall furnish Landlord with evidence of the payment and
discharge of any of the aforesaid Impositions within thirty (30)
days after the last day upon which the same may be paid without
interest or penalty for the late payment thereof.

     
Tenant shall pay all interest and penalties imposed upon the
late payment of any Impositions which Tenant is obligated to pay
or cause to be paid hereunder.

     
If Tenant shall fail, for ten (10) days after notice and demand
given to Tenant, to pay any Imposition on or before the last day
upon which the same may be paid without the imposition of
interest or penalties for the late payment thereof, then
Landlord may pay the same with all interest and penalties
lawfully imposed upon the late payment thereof and the amounts
so paid by Landlord shall thereupon be and become immediately

-14-

 

due and payable by Tenant to Landlord hereunder.

     
Tenant, at Tenant’s cost and expense, may, if Tenant shall
in good faith so desire, contest the validity or amount of any
Imposition, in which event Tenant may defer the payment thereof
for such period as such contest shall be actively prosecuted and
shall be pending undetermined. Landlord agrees to sign the
necessary papers in connection with any real estate tax
assessment or other Imposition protest filed by Tenant. Any
refunds received as a result of such protests shall belong to
Tenant.

     
No provision of this Lease shall be construed so as to require
Landlord to allow any such items so contested or intended to be
contested to remain unpaid for such length of time as shall
permit the demised premises, or the lien thereon created by such
item to be contested, to be sold by federal, state, county or
municipal authority for the nonpayment thereof, or as shall
permit an action, either of foreclosure or otherwise, to be
commenced by the holder of any mortgage which shall be lien upon
Landlord’s interest in the demised premises.

     
In the case of such of the aforesaid Impositions levied with
respect to a particular fiscal period of the levying or taxing
authority, for any such period in which this Lease terminates or
expires, Tenant shall be liable under this Paragraph 5 only for
such proportion of such Impositions as the part of such fiscal
period from the beginning of said period to the date of

-15-

 

expiration or termination of this Lease shall bear to the whole
of such fiscal period. It is agreed that Tenant shall have the
right to request that any lump sum special assessment be paid in
annual installments so long as Tenant pays such assessment or
tax resulting therefrom in full at the expiration of this Lease.
Notwithstanding any provision to the contrary set forth herein,
all Impositions shall be adjusted on a pro-rata basis commencing
on the date Tenant is given possession of the land pursuant to
the terms of Paragraph 2 herein.

     
6. Tenant agrees to construct all of the improvements,
structures, parking area and roadways and to perform all other
work of any nature, except the demolition of the existing motion
picture screen, necessary to change the present condition of the
parcel of land being leased to the condition desired by Tenant.
All of such work shall be performed in accordance with plans and
specifications to be prepared by Tenant at Tenant’s
expense, providing for improvements which shall include a
Hechinger store substantially similar to either the Glenmont or
Tysons Corner store of Hechinger. Any plans and specifications
providing for improvements other than described above shall be
subject to Landlord’s approval. Landlord’s approval
shall not be unreasonably withheld or delayed. Landlord agrees
to submit to Tenant on or before the date Landlord is required
to deliver possession of the demised premises to Tenant written
evidence of Landlord’s ability to fund Landlord’s
maximum commitment hereunder to pay

-16-

 

for Landlord’s cost is a form acceptable to Tenant.

     
Landlord shall reimburse Tenant for all of its construction
costs, being all expenses and costs reasonably incurred by
Tenant in designing and constructing Tenant’s improvements,
in the following manner:

     
Tenant shall submit monthly requisitions to Landlord on or
before the 25th day of each month signed by an officer of Tenant
and the supervising architect setting forth in trade breakdown
form and in such detail as may be required by Landlord’s
mortgagee the percentage of completion and the amounts expended
or costs incurred for work done and necessary materials
delivered at the site. Advances by Landlord for Tenant’s
construction costs shall be equal to 90% of the amount
requisitioned and shall be made on or before the 10th day of the
following month. The first requisition may not be submitted
until site work has commenced. Said first requisition may
include non-construction items expended prior to the date of
said requisition such as architect’s and engineer’s
fees and recording costs. With each requisition other than the
first, Tenant shall furnish waivers of mechanics’ liens as
to the general contractor and each major subcontractor and
supplier for all work performed or materials included in the
last previous requisition if requested by the construction
lender or title insurance company. The final holdback of 10%
shall be paid at such time as construction is fully completed to
the reasonable satisfaction of Tenant, Landlord and
Landlord’s

-17-

 

[Illegible][Illegible text] of liens have been delivered
to Landlord and Tenant has taken possession of the improvements
constructed by Tenant on the demised premises and has opened for
business in the demised premises. The payment of all
requisitions shall be subject to the satisfaction by Tenant of
the conditions normally established by construction lenders in
the Metropolitan Washington area. Landlord agrees to accept
Tenant’s architect’s certificate of full completion
and will use its best efforts to have its mortgagee also accept
such certificate.

     
It is agreed that the amount to be advanced by Landlord to
Tenant for Tenant’s costs shall be not less than
$1,100,000.00 nor more than $2,100,000.00. The specific amount
within such limits shall be requested by Tenant in writing at
the same time Tenant notifies Landlord that Tenant desires
possession of the demised premises. If Tenant shall fail to so
notify Landlord, it shall be presumed that Tenant requests
Landlord to advance $1,100,000.00.

     
Any portion of loan placement fees, title insurance,
lender’s counsel fees and/or closing expenses attributable
to that portion of the financing in excess of Landlord’s
cost shall not be included as part of Landlord’s cost. For
example, if Tenant requests Landlord to provide financing of
$1,400,000.00 for Tenant’s costs and other portions of
Landlord’s cost amount to $100,000.00 (for such items as
interest during construction, etc.) and Landlord elects to
obtain a mortgage for $2,000,000.00, then only three-fourths of
the amount of the loan placement fees, title insurance,
lender’s counsel fees and/or closing expenses shall be
included in the computation of Landlord’s cost. Landlord

-18-

 

shall use its best efforts to minimize such fees.

     
The term “Landlord’s cost” shall mean all sums
expanded by Landlord for reimbursement to Tenant for
Tenant’s cost of construction, interest payable by Landlord
to Landlord’s construction lenders on sums advanced to
Tenant by Landlord, costs of obtaining construction and
permanent financing (including, but not limited to, loan
placement fees, title insurance, lender’s counsel fees and
closing expenses as computed according to the provisions of the
immediately preceding paragraph) and permit fees paid by
Landlord, if any. In the event Landlord’s cost exceeds the
amount requested by Tenant in accordance with the provisions set
forth above plus the actual amount of those items included in
Landlord’s cost which are not part of Tenant’s cost of
construction (i.e., construction loan interest, loan placement
fees, etc.). Landlord shall have the option of paying such
excess amount or of requiring Tenant to pay such excess amount.
At the time Tenant notifies Landlord that Tenant desires
possession of the demised premises, the parties shall in good
faith prepare a written estimate of the total amount of those
items including in Landlord’s cost which are not part of
Tenant’s costs. Any dispute in preparing the estimate shall
be resolved as directed solely by Tenant. Unless Landlord
notifies Tenant in writing within ten days after the total
amount of Landlord’s costs has been determined of
Landlord’s election, Tenant shall pay any such excess
amount. Tenant shall have the right to audit the items submitted
by Landlord constituting Landlord’s costs. Any dispute
shall be referred to arbitration pursuant to paragraph 36 hereof.

     
At the time Tenant notifies Landlord that it desires possession
of the demised premises, Tenant shall have the right to advise
Landlord in writing that it intends to provide its own
construction funds and that Landlord shall only be obligated to

-19-

 

[illegible] the amount requested by Tenant as above
provided between $1,100,000.00 and $2,100,000.00 at the time the
final buyback payment would have been made to Tenant had
Landlord obtained a construction loan.

     
In the event Tenant desires Landlord to provide funds during
construction to Tenant, Tenant shall so advise Landlord in
writing at the time Tenant notifies Landlord that it desires
possession of the demised premises. If Tenant shall fail to
advise Landlord as to whether or not Landlord is to provide
funds during construction, it shall be presumed that Tenant
desires Landlord to provide such funds.

     
In the event Landlord is required to provide funds during
construction to Tenant, Tenant covenants and agrees to take such
funds from Landlord as such funds are needed during construction
by Tenant. It is intended by this paragraph that Tenant will
take down all of the funds requested of Landlord during the
normal course of construction so that Landlord will not be in
default of any construction loan provisions requiring that funds
borrowed from the construction lender shall be used to pay for
the construction of the project as such construction progresses.

     
Tenant shall have the right, simultaneously with Landlord, to
place the construction and/or permanent loans since the cost of
obtaining such loans, as above limited, are part of
Landlord’s costs. The parties recognize that loan
applications must be promptly submitted and accepted.
Accordingly, at such time as Landlord is ready to submit a loan
application to a lender, Landlord shall advise Tenant in writing
of the terms of such application. Unless Tenant shall be able to
provide a loan on terms more favorable to the borrower and shall
so advise Landlord within 48 hours after receipt of
Landlord’s notice, Landlord shall have

-20-

 

the right to submit the loan application and to accept a
commitment from the lender in accordance with the terms of the
application. Since it is to the mutual interest of Landlord and
Tenant to obtain construction and permanent loans on terms most
favorable to the borrower, Landlord and Tenant will work closely
with each other in order to achieve the desired result.

     
Regardless of whether Landlord provides funds to Tenant during
construction, Tenant covenants and agrees to accept from
Landlord and Landlord agrees and covenants to deliver to Tenant
(even if Tenant’s costs are less than the amount requested
by Tenant) the amount of money originally requested by Tenant at
such time as said amount of money is payable by Landlord to
Tenant.

     
7. Tenant shall at all times during the term of this Lease,
at Tenant’s cost and expense, keep the demised premises and
all buildings and improvements now or hereafter located
there-on, and all facilities and equipment therein, and all
sidewalks, curbs, vaults and vault spaces adjoining the demised
premises, and all appurtenances thereto, in first class
operating condition and repair (subject, however, to normal wear
and use), and in such condition as may be required by law and by
the terms of the insurance policies furnished pursuant to the
terms of this Lease, whether or not such repair shall be
interior or exterior, extraordinary as well as ordinary, and
whether or not such repair shall be of a structural nature, and
whether or not the same can be said to be within the present
contemplation of the parties hereto. Upon the expiration of this
Lease, Tenant shall surrender the demised premises in good
condition and repair, ordinary wear and tear excepted.

-21-

 

     
Tenant shall at all times during the term of this Lease, at
Tenant’s cost and expense, keep the sidewalks, curbs,
vaults and vault spaces adjoining the demised premises, free
from snow, ice and any other obstructions.

     
Tenant may from time to time during the term of this Lease make
alterations or additions to the premises; provided that said
alterations or additions shall not adversely affect the value
thereof and provided further
                    
that if any alteration is of a structural nature or shall cost
more than fifty thousand dollars ($50,000.00), then Tenant shall
obtain Landlord’s prior written consent thereto, which
consent may be conditioned on the furnishing by Tenant of a
completion and payment bond of a surety company reasonably
acceptable to Landlord. Such consent shall not be unreasonably
withheld or delayed.

     
8. Tenant shall at all times from and after the date Tenant
takes possession of the demised premises and during the term of
this Lease, at Tenant’s cost and expense, perform and
comply with all laws, rules, orders, ordinances, regulations and
requirements now or hereafter enacted or promulgated, of any
sovereign or municipality, or agency thereof, having
jurisdiction over the demised premises, or the buildings and
improvements now or hereafter located thereon, or the facilities
or equipment therein, or the streets, sidewalks, vaults, vault
spaces, curbs and gutters adjoining the demised premises or the
appurtenances thereto, or the franchises and privileges
connected therewith, whether or not such laws, rules, orders,
ordinances, regulations or requirements so involved shall
necessitate

-22-

 

structural changes, improvements, interference with use and
enjoyment of the demised premises, replacements or repairs,
extraordinary as well as ordinary, and Tenant shall so perform
and comply, whether or not such laws, rules, orders, ordinances,
regulations, or requirements shall now exist or shall hereafter
be enacted or promulgated, and whether or not such laws, rules,
orders, ordinances, regulations, or requirements can be said to
be within the present, contemplation of the parties hereto.
Notwithstanding the foregoing, Tenant at its expense may
contest, after prior written notice to Landlord, by appropriate
legal proceedings conducted in good faith and with due
diligence, in the name of Landlord or Tenant, or both, the
validity or application of any law, rule, order, ordinance,
regulation or requirement of the nature referred to above,
provided that (a) neither the demised premises nor any part
thereof would be in any danger of being forfeited or lost, (b)
neither Landlord nor any mortgagee would be in any danger of
civil or criminal liability for failure to comply therewith, and
(c) Tenant shall have furnished such security, if any, as may be
required in the proceedings. Landlord agrees to cooperate in any
such contesting by Tenant and to sign any necessary documents.

     
Tenant during the term of this Lease will not use or keep or
allow the demised premises or any portion thereof of any
buildings or other improvements now or hereafter erected or
maintained thereon or any appurtenances thereto, to be used or
occupied for any unlawful purpose or in violation of any
certificate of occupancy, and will not suffer any act to be done
or any

-23-

 

condition to exist on the demised premises or any portion
thereof or in any building or [illegible] improvements
now or hereafter erected thereon or in any appurtenance thereto,
or permit any article to be brought therein, which may be
dangerous, unless safeguarded as required by law, or which may,
in law, constituted a nuisance, public or private, or which may
make void or voidable any insurance in force with respect
thereto.

     
9. Landlord agrees to join in the execution of necessary
utility easements, street widening dedications or other
documents to public or quasi-public authorities necessary to
permit the parties to accomplish the results intended by this
Lease.

     
10. Notice is hereby given that Landlord shall not be
liable for any work performed or to be performed on the demised
premises, or in any building or improvement thereon, or in
connection with any appurtenance thereto, for Tenant or for any
materials furnished or to be furnished at the demised premises
for Tenant, and that no mechanics’ or other lien for such
work or materials shall attach to the reversionary or other
interest of Landlord. If, in connection with any work being
performed by Tenant or in connection with any materials being
furnished to Tenant, any mechanics’ lien or other lien or
charge shall be filed or made against the demised premises or
any part thereof or any buildings or improvements now or
hereafter erected and maintained thereon or on any appurtenances
thereto, or if any such lien or charge shall be filed or made
against Landlord as owner, then Tenant, at Tenant’s cost
and expense, within thirty

-24-

 

(30) days after such lien or charge shall have been filed
or made, shall cause the same to be cancelled and discharged of
record by payment thereof or filing of a bond or otherwise, and
shall also defend, at Tenant’s cost and expense, any
action, suit or proceeding which may be brought for the
enforcement of such lien or charge, and shall pay any damages
suffered or incurred therein by Landlord, and shall satisfy and
discharge any judgment entered therein. In the event of the
failure of Tenant to discharge within the above-mentioned thirty
(30) day period any mechanics’ lien or other lien or
charge herein required to be paid or discharged by Tenant,
Landlord may pay such items or discharge such liability by
payment or bond, or both, and Tenant will repay to Landlord upon
demand any and all amounts paid by Landlord therefor, or by
reason of any liability on any such bond, and also any and all
incidental expenses, including counsel fees in reasonable
amount, incurred by Landlord in connection therewith.

     
11. This is an absolutely net lease and Landlord shall not
be required to provide any services or do any act or thing with
respect to the demised premises, or the buildings and
improvements thereon, or the appurtenances thereto, except as
may be specifically provided herein, and the rent reserved
herein shall be paid to Landlord without any claim on the part
of Tenant for diminution, set off or abatement and nothing shall
suspend, abate or reduce any rent to be paid hereunder, unless
otherwise specifically provided for herein.

-25-

 

     
In the event that Landlord (or Landlord’s mortgagee) shall
fail to perform any obligation to be performed by Landlord
within thirty days after receipt of written notice, or commence
to cure within said thirty days and diligently proceed to cure
any matter which cannot be cured within said period, Tenant
shall have the right to perform such obligation and to deduct
the cost thereof (plus interest thereon at 2% above the prime
rate charged by Riggs National Bank, Washington, D.C.) from
the next ensuing rental payments.

     
12. Commencing on the date Tenant takes possession of the
demised premises and continuing at all times during the term of
this Lease, Tenant shall: (a) keep the buildings which may
hereafter be erected on the demised premises insured in the name
of Landlord, Tenant and Landlord’s mortgagee as their
interest may appear, with the standard mortgagee loss payable
clause, in insurance companies satisfactory to Landlord against
loss or damage by fire, windstorm, hail, explosion, riot, civil
commotion, vandalism, malicious mischief, smoke, hurricane and
tornado and damage from aircraft and vehicles and such other
risks as are customarily insured against by persons in the same
or a similar business as Tenant in the Metropolitan Washington
area, to the extent insurance against such risks is available in
said area under an extended coverage endorsement, in an amount
representing not less than one hundred percent (100%) of the
full insurable value [the term “full insurable value”
shall mean the actual replacement cost (excluding foundation and
excavation cost and

-26-

 

cost of underground flues, pipes and drains), without deduction
for physical depreciation, as such replacement cost shall be
adjusted by Tenant’s insurer every three years due to
changes in the cost of construction factor, at Tenant’s
expense] and against war risks, as when and so long as insurance
against such risks is obtainable from the United States of
America or an agency thereof at reasonable cost in an amount
representing not less than one hundred percent (100%) of the
full insurable value: (b) effect and maintain in insurance
companies satisfactory to Landlord, boiler insurance, if the
same shall be appropriate, in an amount acceptable to Landlord
and general liability insurance on the demised premises for the
benefit of Landlord, Tenant and Landlord’s mortgagee and
covering any liability that Landlord or Landlord’s
mortgagee may have regarding the demised premises for a total of
One Million Dollars ($1,000,000.00) in respect to any one
accident or disaster and One Million Dollars
($1,000,000.00) in respect of injuries or damage to any person,
and Five Hundred Thousand Dollars ($500,000.00) in respect
to property damage; (c) with respect to the initial
construction or any restoration, alterations or changes in the
demised premises that may be made by the Tenant in excess of
Fifty Thousand Dollars ($50,000.00) per job, also provide and
keep in force for the benefit of the Landlord and
Landlord’s mortgagee, contingent liability and
builder’s risk insurance in the usual form, including
coverage against collapse (during the initial construction, the
premiums for contingent liability and builder’s risk
insurance shall be included in

-27-

 

Tenant’s construction costs); and in insurance companies
satisfactory to the Landlord as to the amount of each policy and
the identity of the respective insurers; and (d) effect and
maintain in insurance companies satisfactory to Landlord,
casualty rent insurance in an amount sufficient to meet all real
estate tax payments for one year plus the amount of the minimum
rent hereunder for a period of one year from the date of the
casualty. In the event of an insured loss, the insurance
proceeds shall be payable to Landlord and/or Landlord’s
mortgage and held subject to the provisions of Paragraph 14
hereof. Tenant agrees to deliver to Landlord all policies for
fire and extended coverage insurance and duplicate policies or
certificates from insurance companies with respect to the other
insurance coverages provided for herein, at least five days
prior to the effective date of the particular policy and from
time to time thereafter as new policies are issued. Each
insurance policy or certificate shall, to the extent obtainable,
contain an agreement by the insurer that such policy shall not
be cancelled without at least ten (10) days prior written notice
to Landlord and to Landlord’s mortgages and that any losses
shall be paid notwithstanding any act or neglect of Tenant or
Landlord. If Tenant shall fail to effect or maintain each
insurance, Landlord may effect the same Tenant agrees to pay on
demand any amount properly paid by Landlord for such purpose,
and, in case of its failure to so pay, the same shall be added
to and become part of the installment of rent next due under the
terms of this Lease. Landlord shall not be limited in the proof
or any damages which

-28-

 

Landlord may claim against Tenant arising out of or by reason of
Tenant’s failure to provide and keep in force general
liability policies as aforesaid, to the amount of the insurance
premium or premiums not paid or incurred by Tenant which would
have been payable upon such insurance but shall also be entitled
to recover as damages for such breach, the uninsured amount of
any loss, liability, damages, claims, costs and expenses of
suits, judgments and interest, suffered, or incurred by Landlord
by reason of accident or disaster occurring on the demised
premises which should have been insured hereunder. The Tenant
shall not violate or permit to be violated any condition of any
of said policies, and Tenant shall so perform and satisfy the
requirements of the companies writing such policies that at all
times companies of good standing shall be willing to write such
insurance. Subject to approval by Landlord’s mortgagee, all
insurance to be carried by Tenant hereunder may be provided
under blanket coverage policies and certificates of such
insurance may be submitted. Any of Tenant’s insurers which
are satisfactory to Landlord’s first mortgagee shall be
deemed also approved by Landlord for purposes of this Lease.

     
13. Tenant will indemnify and save harmless Landlord from
and against any and all liability, loss, damages, expenses, cost
of action, suits, interest, fines, penalties, claims and
judgments (to the extent that the same are not paid out of the
proceeds of any policies of insurance furnished by Tenant to
Landlord pursuant to Paragraph 12 hereof) arising from
injury or claim of injury, from and after the date Tenant takes
possession of the

-29-

 

demised premises and during the term of this Lease to persons or
property of any and every nature, and from any matter of thing,
growing out of the occupation, possession, use, management,
improvement, construction, alteration, repair, maintenance or
control of the demised premises, the buildings and improvements
now or hereafter located thereon, the facilities and equipment
therein, the streets, sidewalks, vaults, vault spaces, curbs and
gutters adjoining the premises, the appurtenances thereto or the
franchises and privileges connected therewith (other than such
as may have been caused by the negligence of Landlord, its
agents or employees), or arising out of Tenant’s failure to
perform, fully and promptly, or Tenant’s postponement of
compliance with, each and every term, covenant, condition and
agreement herein provided to be performed by Tenant. Tenant, at
Tenant’s cost and expense, will defend by counsel any and
all suits that may be brought, and claims which may be made,
against Landlord, or in which Landlord may be impleaded with
others, whether Landlord shall be liable or not, upon any such
above-mentioned liability, loss, damages, expenses, costs of
action, suits, interest, fines, penalties, claims and judgements
and shall satisfy, pay and discharge any and all judgments that
may be imposed against Landlord in any such action or actions in
which Landlord may be a party defendant, or that may be filed
against the demised premises, the buildings and improvements
thereon or the appurtenances thereto, or any interest

-30-

 

therein, and in the event of the failure of Tenant to say the
sum or sums for which Tenant shall become liable as aforesaid,
then Landlord may pay such sum or sums, with all interest and
charges which may have accrued thereon, and the amount so paid
by Landlord shall be payable by Tenant to Landlord upon demand
together with interest thereon at the rate of two percentage
points above the prime interest rate charged by Riggs National
Bank, Washington D.C., from the date of payment thereof by
Landlord plus reasonable counsel fees incurred by Landlord.
Tenant’s obligations under the last sentence of this
Paragraph 13 shall be deemed satisfied if performed and
discharged by an insurer or anyone else on Tenant’s behalf
rather than Tenant itself.

     
14. If any building, fixture or other improvements
hereafter situated on the demised premises (except movable trade
fixtures, furniture and furnishings) should at any time during
the term of this Lease be damaged or destroyed by fire or
otherwise, the Tenant shall (except as otherwise hereinafter
provided), at its sole cost and expense (except to the extent
that it shall be reimbursed out of insurance proceeds), restore
and rebuild the same as nearly as possible to the condition they
were in immediately prior to such damage or destruction, and
such restoration and rebuilding, prosecuted with reasonable
diligence, shall be completed as soon as reasonably possible. No
damage or destruction of any building or any of the fixtures or
other property therein shall be grounds for the termination of
this Lease except as hereinafter provided during the last two
years of the term, or relieve the Tenant from any obligation
created or imposed by the virtue of this Lease, any laws of the
State of Virginia to the

-31-

 

contrary notwithstanding including, but without limiting the
generality of the foregoing, Tenant’s obligation to make
payment of the rent and all other charges on the part of Tenant
to be paid, and the Tenant’s obligation to perform all
other covenants and agreements on the part of the Tenant to be
performed. To the extent Landlord shall receive rental payments
from Tenant’s casualty rent insurance carrier, Tenant shall
be given a credit against the minimum rent and other charges
payable by Tenant for the amount so received for the period for
which such payments are applicable. All insurance proceeds
payable on account of such damages arising from insurance
required under the provisions of this Lease shall be paid by
Landlord and/or its first mortgagee to Tenant in the case of any
particular casualty resulting in a loss payment not exceeding
$50,000.00 in the aggregate, provided that the Tenant is not in
default under this Lease. In case of any particular casualty
resulting in a loss payment in excess of $50,000.00 in the
aggregate, the insurance proceeds shall be paid to and held by
the Landlord and/or its first mortgagee in an escrow fund and
shall be disbursed to Tenant, or its Contractor, from time to
time as construction progresses, subject to a ten percent (10%)
holdback payable upon satisfactory completion of the
restoration, rebuilding or repair. In the event any surplus of
insurance proceeds shall remain after repairs or replacement of
said building shall have been made, such excess shall forthwith
be paid to Tenant. If there is no first mortgagee, insurance
funds in excess of $50,000.00 shall be held in escrow jointly be
Landlord and Tenant for disbursement as required by this Lease.

-32-

 

     
In the event that at least fifty percent of the demised premises
shall be damaged by fire or other insured casualty during the
last two years of the initial term of this Lease or any
exercised extension thereof, then Tenant shall have the right to
terminate this Lease by giving written notice to Landlord within
thirty days of the date of casualty. In such event, all
insurance proceeds, exclusive of proceeds payable to Tenant for
trade fixtures, trade equipment, inventory and other property of
Tenant, shall belong to Landlord. Unless this Lease shall have
been terminated, Tenant shall have the right to negotiate and
adjust all loss with its insurance carriers.

     
15. If the whole of the demised premises shall be taken or
condemned by any competent authority for any public or
quasi-public use or purpose, this Lease shall terminate as of
the date of title vesting in such authority.

     
If more than 25% of the floor area of the building then
constructed upon the demised premises shall be so taken, either
party hereto may elect, by giving written notice to the other,
not more than sixty days after the date on which title shall
vest in such authority, to terminate this Lease, whereupon, this
Lease shall cease and terminate as of the date of title vesting.

     
It is agreed, however, that Tenant may nullify Landlord’s
election to terminate this Lease by advising Landlord in writing
within ten days after receipt of Landlord’s written notice
of termination that Tenant agrees that the minimum rent shall
not be reduced more than twenty-five percent, notwithstanding
that more than 25% of the floor area of the building then
constructed upon the demised premises shall have been taken or
condemned, and that

-33-

 

Tenant desires this Lease to remain in full force and effect.

     
In case of any taking or condemnation where this Lease is not
terminated, the entire award shall be the property of Landlord
and Tenant hereby assigns to Landlord all its right, title and
interest in and to any such award. It is agreed, however, that
if a portion of the building is taken and this Lease is not
terminated, Tenant must restore the building to a complete
architectural unit and Landlord shall make available to Tenant
that portion of the award so needed by Tenant. In the event this
Lease is terminated as a result of a taking or condemnation,
Landlord shall pay to Tenant the unamortized portion of the cost
of improvements made by Tenant to the demised premises (for
which Tenant has not previously been reimbursed by Landlord), as
determined by Tenant’s federal income tax returns.

     
Subject to the provisions of the third paragraph in this
Paragraph 15, the minimum rent in the case of any taking or
condemnation, shall be apportioned as of the date of vesting of
title and, if the term of this Lease shall not have ceased and
terminated as of said date, Tenant shall be entitled to a pro
rata reduction in the annual minimum rent payable hereunder
based on the proportion which the floor area of the space taken
in the building then constructed on the demised premises bears
to the entire floor area of the building then constructed on the
demised premises immediately prior to such taking. There shall
be no adjustment in minimum rent unless a portion of the
building located on the demised premises shall be taken.

     
No such taking of any parking area shall give Tenant any right
to terminate this Lease unless the number of on-grade

-34-

 

parking spaces which can be provided on the remaining land shall
be less than 75% of the number of on-grade parking spaces which
were provided immediately prior to the taking. In the latter
event, Tenant shall have the right to terminate this Lease by
giving written notice to Landlord within thirty days of the date
of taking.

     
16. Landlord covenants and agrees that Tenant, on paying
the rents and observing and keeping the covenants, agreements
and stipulations of this Lease on its part to be kept, shall
lawfully, peaceably and quietly hold, occupy and enjoy said
demised premises during the term of this Lease, without
hindrance, ejection or molestation by Landlord or any person or
persons lawfully claiming under Landlord. Landlord warrants that
it has good and marketable title to the demised premises,
subject only to those exceptions listed in the Certificate of
Title attached hereto as Exhibit “A-2”. In the event
that Tenant is unable to purchase a leasehold insurance
policy/on or before the date upon which Landlord is required to
deliver possession of the demised premises to Tenant from any
reputable title insurance company in the Metropolitan Washington
area at normal rates with only those standard printed exceptions
under ALTA, Form B and those exceptions listed in Exhibit
“A-2”, Tenant’s sole remedy shall be to terminate
this Lease. Notice of such termination must be given by Tenant
to Landlord within thirty days after the aforesaid date.

     
17. (a) It is agreed by and between the parties that
(1) if default be made by the Tenant in the payment of the
rent above reserved, or any part thereof, or (2) if default
be made by Tenant in any of the covenants and agreements herein
contained, which default shall not be cured within fifteen (15)
days after

-35-

 

notice to Tenant, or if such default is such as cannot
reasonably be cured within such period, then if such cure shall
not be commenced within fifteen (15) days after notice to Tenant
of such default and thereafter diligently completed, or
(3) if the Tenant’s leasehold estate shall be taken on
execution, or (4) if the Tenant shall be declared bankrupt
or insolvent according to law, or shall make an assignment for
the benefit of creditors, then and in any such case, the
landlord may lawfully, immediately or at any time thereafter and
without notice or demand, and without liability for any damage
that may be done to the property of the Tenant, enter into and
upon the demised premises and improvements and repossess the
same and declare this lease and the tenancy hereby created
terminated, expel the Tenant and those claiming under the
Tenant, and Landlord shall be entitled to the benefit of all
applicable laws respecting the speedy recovery of lands and
tenements held over by tenants or proceedings in ejectment,
distraint, forcible entry and detainer, and all without
prejudice to any remedies which might otherwise be used by the
Landlord for arrears of rent or for any breach of Tenant’s
covenants herein contained. Tenant further agrees that
notwithstanding such re-entry, Tenant shall remain liable for
any rent or damage which may be due or sustained prior thereto,
and Tenant shall further be liable for the amount of the rent
reserved under this Lease at the times herein stipulated for
payment of rent or damages which may be due or sustained prior
thereto, and Tenant shall further be liable for the amount of
the rent reserved under this Lease at the times herein
stipulated for payment of rent for the balance of the term, less
any amount received by Landlord during such period from others
to whom the demised premises may be rented on such terms and
conditions, whether for a longer or a shorter period than the
term of this Lease, and at such rentals as Landlord, in its sole
discretion, shall deem proper. There shall be deducted from any
such

-36-

 

amounts received by Landlord from others any expenses,
including, but not limited to brokerage fees, legal fees,
redecorating or remodeling expenses, insured by Landlord in such
reletting.

     
     (b) It is agreed by and
between the parties that the Landlord shall have at all times
the right to distrain for rent and other charges due and shall
have a first and valid lien upon all property of the Tenant on
the demised premises whether or not exempt by law, for payment
of the rent and other charges herein reserved. Landlord agrees
to subordinate its Landlord’s lien to the financing by
Tenant of its fixtures and trade items and inventory.

     
     (c) With respect to a default
by Tenant in the payment of rent, Tenant shall have seven days
to cure such default after receipt of written notice from
Landlord. It is agreed, however, that Landlord shall not be
required to give such notice more than three times in any
twelve-month period.

     
18. Tenant shall have the right to assign this Lease and/or
sublet all or a portion of the demised premises without the
consent of the Landlord.

     
If this Lease shall be assigned or if the demised premises or
any part thereof be sublet or occupied by anyone other than
Tenant, Landlord may collect rent from the assignee, subtenant
or occupant and apply the net amount collected to the rent
herein reserved, but no such collection of rent shall be deemed
a release of Tenant from the further performance by Tenant of
the covenants on the part of the Tenant herein contained.

     
19. Each party hereto agrees that at any time (but not more
often than twice in each calender year) during the term of

-37-

 

this Lease, within ten (10) days after request by the other
party hereto, it will execute, acknowledge and deliver to such
other party or to any prospective purchaser, assignee, sublessee
or mortgagee designated by such other party, a certificate
stating (a) that this Lease is unmodified and in force and
effect (or if there have been modifications, that this Lease is
in force and effect as modified, and identifying the
modification agreements); (b) the date to which rent has
been paid; (c) whether or not there is any existing default
by Tenant in the payment of any rent or other sum of money
hereunder, and whether or not there is any other existing
default by either party hereto with respect to which a notice of
default has been served, and if there is any such default,
specifying the nature and extent thereof; and (d) whether
or not there are any set-offs, defenses or counterclaims against
enforcement of the obligations to be performed hereunder
existing in favor of the party executing such certificate.

     
20. Any notices given or required hereunder shall be in
writing and shall be given or made by mailing the same by
certified mail, postage prepaid, addressed:

			
	 	To the Landlord — Messrs.	
    Walter J. Hodges and

Joseph P. Smyth, Esquire

c/o Walter J. Hodges

4697 South 34th Street

Arlington, Virginia 22206

with a copy to:

Joseph P. Smyth, Esquire

6045 Wilson Boulevard

Arlington, Virginia 22205

-38-

 

     
To the Tenant — Hechinger Company

		
	 	
    Attn: Mr. John M. [Illegible], President
	 	
    901 - 17th Street [Illegible]
	 	
    Washington, D. C. 20002

     
In the event the Tenant shall have assigned its entire interest
in this Lease to one entity or shall have sublet the entire
demised premises to one entity, Landlord agrees to send a copy
of any notice sent to Tenant to the assignee or sublessee and
such assignee or sublessee shall have the same rights as Tenant
to cure any default hereunder.

     
21. Landlord and its agents shall have the right of access
to the demised premises during reasonable business hours to
inspect the same in order to assure compliance with this Lease,
or to show the same to prospective purchasers; and for a period
of six (6) months prior to the expiration of the Lease
term, may erect “For Sale” or “For Lease”
signs of such size and in such manner as not to interfere with
the operation of Tenant’s business. Any such inspection or
showing shall be performed in such a manner so as not to
unreasonably interfere with the conduct of Tenant’s
business.

     
22. No waiver by Landlord of any breach by Tenant of any
term, convenant, condition or agreement herein and no failure by
Landlord to exercise any right or remedy in respect of, any
breach hereunder, shall constitute a waiver or relinquishment
for the future of any such term, covenant, condition or
agreement or of any subsequent breach of any such term,
covenant, condition or agreement, nor bar any right or remedy or
Landlord in respect of any such subsequent breach, nor shall the
receipt of any rent or additional rent, or any portion thereof,
by Landlord,

-39-

 

operate as a waiver of the rights of Landlord to enforce the
payment of any other such rent or additional rent then or
thereafter in default, or to terminate this Lease, or to recover
the demised premises or to invoke any other appropriate remedy
which Landlord may select as herein or by law provided.

     
23. The term “Landlord” as used in this Lease, so
far as covenants or obligations on the part of Landlord are
concerned, shall be limited to mean and include only the owner
or owners at the time in question of the fee of the demised
premises, and in the event of any transfer or transfers of the
title to such fee Landlord herein named (and in case of any
subsequent transfers or conveyances, the then grantor) shall be
automatically freed and relieved from and after the date of such
transfer and conveyance of all personal liability as respects
the performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed,
provided that, any funds in the hands of Landlord or the then
grantor at the time of such transfer, in which Tenant has an
interest, shall be turned over to the grantee and any amount
then due and payable to Tenant by Landlord or the then grantor
under any provision of this Lease shall be paid to Tenant, and
provided further that upon any such transfer, the grantee or
transferee shall expressly assume and agree to be bound by,
subject to the limitations of this paragraph, all of the terms,
covenants and conditions in this Lease contained, to be
performed on the part of Landlord it being intended hereby that
the covenants and

-40-

 

obligations contained in this Lease on the part of Landlord
shall, subject as aforesaid, be binding on Landlord, its
successors and assigns, only during and in respect of their
respective successive periods of ownership.

     
In the event Landlord assigns this Lease prior to the payment by
Landlord to Tenant of Tenant’s cost of construction, such
assignment shall be conditioned upon the joint and several
unconditional guaranty by Landlord to Tenant that such funds
shall be paid.

     
24. In the event any provision of this Lease should be
disaffirmed in any bankruptcy, insolvency or similar proceedings
involving Landlord, Tenant shall have sixty days within which to
cancel this Lease after receipt of written notice of such action.

     
25. The terms of this Lease shall be construed in
accordance with the laws of the State of Virginia.

     
26. If requested by Landlord, Tenant agrees that Landlord
may record a short form of this Lease among the Land Records of
Fairfax County, Virginia and all costs of such recording,
including, but not limited to, documentary stamps, transfer
taxes and other recording charges, shall be borne by Landlord.
Such recording costs shall be included as part of
“Landlord’s cost.” Both parties agree to execute
a short form Lease within ten days after request therefor. The
short form shall not include the rental provisions of this Lease.

     
27. Landlord and Tenant each warrant to the other that
neither has worked with any real estate broker with respect

-41-

 

to this transaction. Subject to such representation, each party
agrees to indemnify and to hold harmless the other party from
and against any real estate brokerage commissions payable to any
broker as a result of the signing of this Lease which either
party may have to pay in the event of a breach of this warranty
by the other party. In the event that it is determined that
commission is payable to Andrew B. Phucas and/or Oak Park Realty
as a result of this transaction, Tenant covenants to pay such
commission.

     
28. If Landlord, or its successors or assigns, shall desire
at any time and from time to time to sell all or any part of the
demised premises, Landlord shall first obtain a bona fide
written offer for the purchase of all or part thereof. Landlord
shall promptly give written notice to Tenant of such written
offer. A true copy of the offer containing all of the terms and
conditions of the proposed purchase, with the name and address
of the purchaser shall be attached to the written notice.
Provided Tenant is not in default, for a period of fifteen (15)
days from the receipt of such written notice, Tenant shall have
the exclusive right and option to make the purchase of all or
part of the demised premises at the same price (less brokerage
commissions if Landlord does not have to pay a brokerage
commission as a result of the exercise by Tenant of its right of
first refusal), terms and conditions as are set out in the
offer. If Tenant timely exercises its option, settlement shall
be made within the same time, and upon the same terms and condi-

-42-

 

tions as set forth in the bona fide written offer. If the option
is not timely exercised, the Landlord shall be free to make the
sale to the bona fide offeror; provided, however, that the sale
shall be made within the time provided in the bona fide written
offer and in strict accordance with the price, terms and
conditions as are set forth in the bona fide written offer. The
aforesaid right of first refusal shall be applicable to
transfers of partnership interests or capital stock or other
instruments representing a majority of ownership interest in an
entity whose primary asset is the demised premises.

     
(b) In the event Tenant fails to execute the aforesaid
right of first refusal, then such right shall be deemed
extinguished upon consummation of the sale pursuant to the bona
fide written offer; however, if such sale is not consummated
pursuant to the bona fide written offer, the right of first
refusal shall remain in effect.

     
(c) The right of first refusal shall not be applicable to
transfers by gift, will or intestacy, nor shall same be
applicable to transfers by Landlord to members of
Landlord’s family or to corporations or trusts
substantially owned or controlled by Landlord, or members of
Landlord’s family, it being the intent of the parties that
any excluded transfers may be with or without consideration, but
shall not be the purposes of evading Tenant’s right of
first refusal. In any event, the right of first refusal shall
remain in full force and effect after such excluded transfers
and shall be binding upon the transferees, or any successors in
title or interest to Landlord.

-43-

 

     
29. Time is of the essence in this Lease.

     
30. So long as Tenant is not in default, all shelving,
counters and other trade fixtures and trade equipment may be
removed from time to time during the term of this Lease. At the
end of the term hereof, Tenant shall remove all signs, personal
property and trade fixtures from the demised premises.

     
31. In the event that the applicable zoning laws are
changed and the use of the demised premises becomes a
nonconforming use and the demised premises are damaged or
destroyed, the Tenant shall be relieved of its obligation to
restore the improvements if the zoning laws prohibit such
restoration. In such event the fire insurance proceeds, if any,
(exclusive of insurance proceeds payable to Tenant for trade
fixtures, trade equipment, inventory and other property of
Tenant) will belong to Landlord.

     
32. In the event that there is a complete denial of access
to the demised premises for more than fourteen days, Tenant
shall pay two percent of gross sales in lieu of minimum rent
during the period in which complete access is denied.

     
33. Landlord and Tenant each hereby waives all claims for
recovery from the other for any loss or damage to any of its
property insured under valid and collectible insurance policies
to the extent of any recovery collectible under such insurance.
Such insurance policies shall provide that the insurance shall
not be prejudiced if the assureds have waived right of recovery
from any person prior to the date and time of loss or damage, if
any, permitted by the applicable policy of insurance. All
insurance policies carried by either party covering the demised
premises, including but not limited to contents, fire and
casualty insurance,

-44-

 

shall expressly waive any right on the part of the insurer
against the other party.

     
34. If so requested by Landlord, Tenant agrees that this
Lease shall be subordinate to the lien of any mortgages or deeds
of trust that may now or hereafter be placed upon the demised
premises and to any and all advances to be made thereunder and
to the interest thereon, and all renewals, replacements and
extensions thereof provided the mortgagee or trustees named in
said mortgages or deeds of trust shall agree in writing for the
benefit of Tenant to recognize this Lease and the rights of
Tenant hereunder and not disturb Tenant’s use and enjoyment
of the demised premises in the event of foreclosure if Tenant is
not in default beyond any permitted grace periods. The term
“Tenant” as used in this Paragraph 34 shall
include Tenant’s assignees and subtenants.

     
35. Tenant shall have the right to install signs upon the
demised premises provided that such signs and the installation
thereof comply with all applicable Governmental regulations.

     
36. In each case specified in this Lease in which it shall
become necessary to resort to arbitration or appraisal, such
arbitration or appraisal shall be determined as provided in this
Paragraph 36. The party desiring such arbitration or
appraisal shall give written notice to that effect to the other
party, specifying in said notice the name and address of the
person designated to act as arbitrator or appraiser on its
behalf. Within fifteen (15) days after the service of such
notice, the other party shall give written notice to the first
party specifying the name and address of the person designated
to act as arbitrator or

-45-

 

appraiser [Illegible][Illegible][Illegible] first party
of the appointment of its arbitrator or appraiser, as aforesaid,
within or by the time above specified, then the appointment of
the second arbitrator or appraiser shall be made in the same
manner as hereinafter provided for the appointment of a third
arbitrator or appraiser in a case where the two arbitrators or
appraisers appointed hereunder and the parties are unable to
agree upon such appointment. The arbitrators or appraisers so
chosen shall meet within ten (10) days after the second
arbitrator or appraiser is appointed and if, within thirty
(30) days after the second arbitrator or appraiser is
appointed, the said two arbitrators or appraisers shall not
agree upon the question in dispute, they shall themselves
appoint a third arbitrator or appraiser who shall be a competent
and impartial person; and in the event of their being unable to
agree upon such appointment within ten (10) days after the
time aforesaid, the third arbitrator or appraiser shall be
selected by the parties themselves if they can agree thereon
within a further period of fifteen (15) days. If the
parties do not so agree, then either party, on behalf of both,
may apply to any court of general jurisdiction in the County in
which the demised premises are located for the appointment of
such third arbitrator or appraiser, and the other party shall
not raise any question as to the Court’s full power and
jurisdiction to entertain the application and make the
appointment. The decision of the arbitrators or appraisers so
chosen shall be given within a period of sixty (60) days
after the appointment of such third arbitrator or appraiser. The
decision in which any two arbitrators or appraisers so appointed
and acting hereunder concur shall

-46-

 

in all cases be binding and conclusive upon the parties. Each
party shall pay the fees and expenses of the original
arbitrators or appraisers appointed by such party, or in whose
stead as above provided, such arbitrator or appraiser was
appointed, and the fees and expenses of the third arbitrator or
appraiser, if any, shall be borne equally by both parties.

     
37. Wherever the consent of the either party is required,
such consent shall not be unreasonably withheld or delayed.

     
38. Landlord agrees to obtain for Tenant within 45 days
from the date hereof a Non-Disturbance Agreement from E. Guy
Ridgely, et al, Trustees, recognizing this Lease and the rights
of Tenant hereunder in the event of foreclosure so long as
Tenant is not in default hereunder beyond any permitted grace
periods. Landlord agrees to keep the present Deed of Trust free
from default until such Non-Disturbance Agreement is obtained.
The agreement of Landlord in the preceding sentence shall be for
the sole benefit of Tenant and for no other party.

     
39. This Lease shall be binding upon and inure to the
benefit of the parties hereto, their heirs, successors and
assigns.

     
Witness the hands and seals of the parties hereto

WITNESS

	 	 	 	 	 	 	 
	 
	
    /s/ Juanita E. Smith	 	
    /s/ Walter J. Hodges	 	 
	 	 	 	 	 
	 	 	
    Walter J. Hodges	 	
    (Seal)
	 
	
    /s/ Juanita E. Smith	 	
    /s/ Joseph P. Smyth	 	 
	 	 	 	 	 
	 	 	
    Joseph P. Smyth	 	
    (Seal)
	
    
    ATTEST:

    	 	 	 	 	 	 
	 	 	
    Hechinger Company	 	 
	 
	
    /s/ Richard England	 	
    By:	 	
    /s/ John W. Heckinger	 	 
	 	 	 	 	
     
	 	
    (Seal)
	 	 	 	 	 	 	 
	 
	
    /s/ Stephen C. Rachard V.P.	 	 	 	 	 	 
	 	 	 	 	 	 	 

-47-

 

     
Pamela S. Smyth and Margaret L. Hodges join in the execution of
this Lease for the sole purpose of subordinating to the
provisions of this Lease (and any and all modifications,
renewals, extensions or supplements to this Lease) any dower or
other estate or interest which either may have in the property
which is the subject of this Lease and agree to grant such
further assurances of this subordination as may be requested.

WITNESS:

	 	 	 	 	 
	
    
    /s/ Juanita E. Smith

    	 	
    /s/ Pamela S. Smyth	 	
    (Seal)
	 	 	 	 	 
	 
	
    
    /s/ Juanita E. Smith

    	 	
    /s/ Margaret L. Hodges	 	
    (Seal)
	 	 	 	 	 

 

	 	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	
    

    

    Exhibit “A”

    (Plat of Property)

 

County of Arlington

Commonwealth of Virginia

     
I hereby certify that on this 28th day of December, 1973, before
me, a Notary Public, personally appeared Walter J. Hodges and
Margaret L. Hodges and acknowledged that they executed the
within Lease for the purposes therein contained.

	 	 	 
	 	 	
    /s/ Juanita E. Smith
	 	 	 
	 	 	
    Notary Public
	 
	
    
    My Commission Expires:

    	 	 

County of Arlington

Commonwealth of Virginia

     
I hereby certify that on this 28th day of December, 1973, before
me, a Notary Public, personally appeared Joseph P. Smyth and
Pamela S. Smyth and acknowledged that they executed the within
Lease for the purposes therein contained.

	 	 	 
	 	 	
    /s/ Juanita E. Smith
	 	 	 
	 	 	
    Notary Public
	 
	
    
    My Commission Expires:

    	 	 

District of Columbia

     
I hereby certify that on this 28th day of December, 1973, before
me, a Notary Public, in and for the State of Maryland,
personally appeared John W. Hechinger, President of Hechinger
Company, a body corporate, and acknowledged that he executed the
within Lease on behalf of said corporation in his corporate
capacity as President.

	 	 	 
	 	 	
    /s/ [ILLEGIBLE]
	 	 	 
	 	 	
    Notary Public
	 
	
    
    My Commission Expires:

    	 	 

(SEAL)

 

 

	 	 	 	 
	 	 
	
    
    

    WALTER L. PHILLIPS

    INCORPORATED

    

    CIVIL ENGINEERS

    LAND SURVEYORS

    PLANNERS

     
DIRECTORS

    WALTER L. PHILLIPS, P.E.

    CHAIRMAN OF THE BOARD

    W. LEE PHILLIPS, JR., P.E.

    PRESIDENT

    ROBERT A. KINSEY, P.E.

    VICE PRESIDENT

     
ASSOCIATE

    JERRY A. McKNIGHT, C.L.E.

    

    [ILLEGIBLE] W BROAD STREET

    FALLS CHURCH, VA [ILLEGIBLE]

    [ILLEGIBLE]

    	 	 	
    

    Description of the Property of Sunset Development corporation of
    Northern Virginia, Mason District, Fairfax County, Virginia.

    
     “Beginning at a point in
    the north line of Leesburg Pike, Virginia Route 7, as
    widened, said point marks the southwest corner of
    L. P. Corporation thence with the east line of said
    L. P. Corporation and then continuing with the east
    line of Hardin Corporation, N 19°, 18’ 50”
    E, 611.54 feet to a point marking the northeast corner of
    the Hardin Corporation in the south line of the Armada
    Corporation; thence with the south line of the Amanda
    Corporation and continuing with the south line of Payne,
    S 61° 32’ 20” E, 423.31 feet to a corner to
    Payne; thence continuing with the west line of Payne,
    S 19° 18’ 50” W, 614.54 feet to a
    point in the north line of Leesburg Pike, Virginia Route 7,
    as widened, marking the southwest corner of Payne; thence with
    the said north line of Leesburg Pike, Virginia Route 7, as
    widened, N 61° 8’ 20” W,
    423.80 feet to the beginning and containing 5.8817
    acres.”

    

                    
                  
                   
                    
                  
                   
                    
                  /s/ Walter L. Phillips

    
                    
                  
                   
                    
                  
                   
                    
                  Walter L. Phillips, C.L.S.

    
                    
                  
                   
                    
                  
                   
                    
                  December 10, 1973

	 	 	Exhibit A-1

(Description of Property)

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