Document:

exv10w8

Exhibit 10.8

LEASE

BY AND BETWEEN

WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY,

AS LANDLORD, AND

PENNSYLVANIA FASHIONS, INC.,

AS TENANT

 

 

INDEX TO

LEASE PROVISIONS

	 	 	 	 	 	 	 	 	 
	ARTICLE I —  Incorporation of Preambles-Certain Definitions	 	 	2	 
	 	 	1.01	 	Incorporation of Preambles
	 	 	2	 
	 	 	1.02	 	Certain Definitions
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II — Lease of Premises	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III —  Term and Extensions	 	 	3	 
	 	 	3.01	 	Initial Term
	 	 	3	 
	 	 	3.02	 	Lease Year
	 	 	3	 
	 	 	3.03	 	Extensions
	 	 	4	 
	 	 	3.04	 	Rent Commencement Date
	 	 	4	 
	 	 	3.05	 	Rent Commencement Date Agreement
	 	 	4	 
	 	 	3.06	 	Expansion of Leased Premises
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV — Rent	 	 	5	 
	 	 	4.01	 	Base Rent
	 	 	5	 
	 	 	4.02	 	Partial Month Rent
	 	 	6	 
	 	 	4.03	 	Terms of Payment
	 	 	6	 
	 	 	4.04	 	Additional Rent
	 	 	6	 
	 	 	4.05	 	Rent
	 	 	6	 
	 	 	4.06	 	Deferment of Rent
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V — Absolute Net Lease	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI — Use	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII — Subletting and Assignment	 	 	7	 
	 	 	7.01	 	Subletting and Assignment
	 	 	7	 
	 	 	7.02	 	Limits on Assignees
	 	 	7	 
	 	 	7.03	 	Assignment by Landlord
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII — Quiet Enjoyment — Landlord’s Warranty	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IX — Alterations	 	 	8	 
	 	 	9.01	 	Tenant’s Alterations
	 	 	8	 
	 	 	9.02	 	Method of Alterations
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE X — Tenant’s Property	 	 	8	 
	 	 	10.01	 	Installation Removal
	 	 	8	 
	 	 	10.02	 	Required Removal
	 	 	9	 
	 	 	10.03	 	Title at Termination
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XI — Lien or Encumbrance	 	 	9	 
	 	 	11.01	 	No Liens
	 	 	9	 
	 	 	11.02	 	No Consent to Work Lien or Encumbrance
	 	 	9	 

i

 

	 	 	 	 	 	 	 	 	 
	ARTICLE XII — Repairs and Maintenance	 	 	10	 
	 	 	12.01	 	Duty to Repair
	 	 	10	 
	 	 	12.02	 	Definition and Standard of Repair
	 	 	10	 
	 	 	12.03	 	No Obligation to Repair
	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XIII — Requirements of Law	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XIV — Damage or Destruction	 	 	11	 
	 	 	14.01	 	Tenant’s Obligation to Rebuild
	 	 	11	 
	 	 	14.02	 	Approval of Plans and Specifications
	 	 	11	 
	 	 	14.03	 	Payment from Escrow
	 	 	11	 
	 	 	14.04	 	Failure to Reconstruct; Termination
	 	 	11	 
	 	 	14.05	 	Force Majeure
	 	 	11	 
	 	 	14.06	 	No Abatement of Rent
	 	 	12	 
	 	 	14.07	 	Default in Payment of Rent
	 	 	12	 
	 	 	14.08	 	Landlord’s Mortgage
	 	 	12	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XV — Insurance	 	 	12	 
	 	 	15.01	 	Tenant’s Property Insurance
	 	 	12	 
	 	 	15.02	 	Boiler Insurance
	 	 	13	 
	 	 	15.03	 	Public Liability Insurance
	 	 	13	 
	 	 	15.04	 	Worker’s Compensation. Employers
Liability Insurance
	 	 	13	 
	 	 	15.05	 	Business Interruption
	 	 	13	 
	 	 	15.06	 	Insurance on Tenant’s Property
	 	 	13	 
	 	 	15.07	 	No Separate Insurance
	 	 	13	 
	 	 	15.08	 	Conduct of Business
	 	 	13	 
	 	 	15.09	 	Requirements of Policies
	 	 	14	 
	 	 	15.10	 	Release, Waiver of Subrogation
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XVI — Indemnification of Landlord	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XVII — Condemnation	 	 	15	 
	 	 	17.01	 	Authority
	 	 	15	 
	 	 	17.02	 	Taking
	 	 	15	 
	 	 	17.03	 	Termination
	 	 	16	 
	 	 	17.04	 	Restoration
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XVIII — Warranties and Representations	 	 	16	 
	 	 	18.01	 	Landlord Warranties
	 	 	16	 
	 	 	18.02	 	Tenant Warranties
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XIX-Default	 	 	18	 
	 	 	19.01	 	Events of Default
	 	 	18	 
	 	 	19.02	 	Landlord’s Rights Upon Tenant’s Default
	 	 	20	 
	 	 	19.03	 	Re-letting
	 	 	20	 
	 	 	19.04	 	Damages Upon Termination
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XX — Signs	 	 	21	 

ii

 

	 	 	 	 	 	 	 	 	 
	ARTICLE XXI — Taxes and Other Liens	 	 	21	 
	 	 	21.01	 	Impositions
	 	 	21	 
	 	 	21.02	 	Tax on Tenant Additions
	 	 	22	 
	 	 	21.03	 	Exceptions
	 	 	22	 
	 	 	21.04	 	Proof of Payment
	 	 	22	 
	 	 	21.05	 	Refunds
	 	 	22	 
	 	 	21.06	 	Protest
	 	 	22	 
	 	 	21.07	 	Requirements of Mortgage
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXII — Utilities	 	 	23	 
	 	 	22.01	 	Payment of Charges
	 	 	23	 
	 	 	22.02	 	Provision of Services
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXIII — Holding Over	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXIV — Notice	 	 	23	 
	 	 	24.01	 	Notice Address
	 	 	23	 
	 	 	24.02	 	Service of Notice
	 	 	24	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXV — Subordination	 	 	24	 
	 	 	25.01	 	Lease Subordinate
	 	 	24	 
	 	 	25.02	 	Subordination, Self-Operative: Subordination
Agreement. Non-disturbance
	 	 	25	 
	 	 	25.03	 	Attornment
	 	 	25	 
	 	 	25.04	 	Attornment to Successor
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXVI — Landlord’s Access to the Premises	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXVII — Environmental Compliance	 	 	25	 
	 	 	27.01	 	Definitions
	 	 	25	 
	 	 	27.02	 	Compliance
	 	 	26	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXVIII — Late Rent	 	 	27	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXVIX — Estoppel Certificates	 	 	27	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXX — Reports	 	 	27	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XXXI — Provisions of General Application	 	 	27	 
	 	 	 	 	 
	 	 	 	 

Exhibit A — Real Property Description for Initial Facility

Exhibit B — Site Plan

Exhibit C — Real Property Description for Additions

Exhibit D — Three Springs Industrial and Business Park Declarations of Covenants, Conditions and Regulations

iii

 

LEASE

THIS LEASE (hereinafter sometimes referred to as this “Lease” or this “Agreement”), made this
28th day of June, 1999, by and between West Virginia Economic Development Authority, a
West Virginia public corporation and government instrumentality, having its principal office at
1018 Kanawha Boulevard, East Suite 501, Charleston, West Virginia, 25301 (hereinafter referred to
as “Landlord”), and Pennsylvania Fashions, Inc., a Pennsylvania corporation, having its principal
office at 155 Thornhill Road, Warrendale, PA 15086 (hereinafter referred to as “Tenant”);

     WITNESSETH THAT:

     WHEREAS, Tenant desires to lease from Landlord upon the terms and conditions set out herein,
the real property described in Exhibit A and illustrated in Exhibit B (the “Site Plan”) located in
the City of Weirton, County of Brooke, State of West Virginia, and

     WHEREAS, Landlord is willing to purchase and improve said real property and to lease said
real property to Tenant upon the terms and conditions set out herein;

     NOW, THEREFORE, for and in consideration of the foregoing preambles, of the mutual promises
and covenants contained herein, of Ten Dollars ($10.00) cash in hand paid by Tenant to Landlord,
and other good and valuable consideration, the receipt and sufficiency of all of which is hereby
acknowledged by both Landlord and Tenant, Landlord and Tenant hereby agree as follows:

ARTICLE I

Incorporation of Preambles-Certain Definitions

     1.01 Incorporation of Preambles. The foregoing preambles are hereby incorporated into this
Lease as a part hereof by this reference thereto.

     1.02 Certain Definitions. Reference is made in this Article 1.02 to certain defined terms used
herein which are defined in the Articles referred to opposite each such term, as follows:

	 	 	 
	“Additions”

	 	Paragraph 3.06
	“Agreement”

	 	Preambles
	“Base Rent”

	 	Paragraph 4.01
	“Construction Schedule”

	 	Paragraph 18.01(i)
	“Cost of the Addition”

	 	Paragraph 3.04(b)
	“Declarations”

	 	Article VI
	“Details”

	 	Paragraph 18.01(i)
	‘‘Entry Date”

	 	Article II
	“Environmental Laws”

	 	Paragraph 27.01 (a)
	“Force Majeure”

	 	Paragraph 14.05
	“KLM”

	 	Article II
	“Impositions”

	 	Paragraph 21.01
	“Improvements “

	 	Article II
	“Initial Term”

	 	Paragraph 3.01
	“Landlord”

	 	Preambles
	“Laws”

	 	Article XIII
	“Lease”

	 	Preambles
	“Lease Year”

	 	Paragraph 3.02

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	“Phase I Report”

	 	Paragraph 18.01(d)
	“Premises”

	 	Article II
	“Prime Rate”

	 	Paragraph 19.03{c)
	“Regulated Substance”

	 	Paragraph 27.01 (b)
	“Rent”

	 	Paragraph 4.05
	“Rent Commencement Date”

	 	 Paragraph 3.04
	“Site Plan”

	 	Preambles. Article II
	“Substantial Completion”

	 	 Article II
	“Tenant”

	 	Preambles
	“Tenant’s Building”

	 	Article II
	“Tenant’s Property”

	 	Article X
	“Term”

	 	Paragraph 3.03
	“WSC”

	 	Paragraph 3.06(e)

ARTICLE II

Lease of Premises

     Landlord, for and in consideration of the rent to be paid and of the covenants and agreements
herein contained to be kept and performed by Tenant, does hereby exclusively lease and demise to
Tenant, and Tenant does hereby exclusively hire from Landlord, the real property being located in
the City of Weirton, County of Brooke and State of West Virginia described in Exhibit A and
illustrated on Exhibit B, together with all improvements thereon, which shall include a building
containing approximately 189,600 square feet (the “Tenant’s Building”) being constructed by KLM
Realty Associates, Limited Partnership, a West Virginia limited partnership (“KLM”), and all
fixtures and accessory improvements thereon, including all roadway, parking areas and landscaped
areas located thereon (collectively, such Tenant’s Building, fixtures and improvements are
hereinafter referred to as the “Improvements”) together with all easements, rights, privileges and
amenities otherwise appurtenant to such real property (herein called the “Premises”). Said Premises
and Improvements are indicated upon the site plan attached hereto as Exhibit “B” (the “Site Plan”).

     KLM has agreed to complete the construction of Tenant’s Building by November 5, 1999, to the
extent necessary to provide contractors for the Tenant, as of that date, with all reasonable
rights of access to Tenant’s Building and in a condition to enable Tenant’s contractors to perform
the delivery and installation work for all trade fixtures of the Tenant in Tenant’s Building (the
“Entry Date”), and neither the Tenant nor its contractors shall unreasonably delay or refuse to
commence the delivery and installation of such fixtures without a material and good faith cause.
KLM has further agreed to complete the construction in such a fashion, excluding the issuance of a
permanent certificate of occupancy, as to enable the Tenant, upon performance of any work to be
done by Tenant and the installation of its trade fixtures and inventory, to occupy and commence
operations at Tenant’s Building by December 20, 1999 (“Substantial Completion”). Substantial
Completion shall be subject to the completion or correction of insignificant “punch list” and
weather sensitive items which do not interfere with the occupation by Tenant of the Tenant’s
Building or commencement of operations at the Tenant’s Building. Tenant shall not unreasonably
delay or refuse to take occupancy of Tenant’s Building without a material and good faith cause.

ARTICLE III

Term and Extensions

     3.01 Initial Term. The initial term (“Initial Term”) of this Lease shall commence on the Rent
Commencement Date and continue for Twelve (12) Lease Years.

     3.02 Lease Year. The first Lease Year during the Term shall be the twelve (12) calendar month
period commencing on the Rent Commencement Date and terminating on the last day of the twelfth
(12th)

-3-

 

full calendar month following the Rent Commencement Date (December 31). Each subsequent Lease Year
during the Term shall commence on the day immediately following the last day of the preceding Lease
Year and shall continue for a period of twelve (12) full calendar months.

     3.03 Extensions. Provided that Tenant is not in default in any condition of this Lease beyond
any applicable cure period, at the time of expiration of the then existing Term of this Lease,
Landlord hereby grants to Tenant the option to extend the Term for Two (2) additional periods of
Five (5) years, each exercisable by Tenant’s written notice to Landlord of such exercise given not
less than eighteen (18) months prior to the expiration of the Initial Term hereof, or of the then
existing option period, as the case may be, on the same terms and conditions as applied during the
Initial Term, except the Base Rent. During each such extension period, the Base Rent (including all
Base Rent attributed to the Additions as computed pursuant to paragraph 4.01 below) shall be
increased for each such five-year extension period by an amount of seven percent (7%) over the Base
Rent paid by Tenant at the end of the prior period. Should Tenant fail to exercise any prior
extension option offered hereunder, all subsequent extension options shall be deemed waived as
well. Tenant shall have no other renewal rights hereunder. The Initial Term of this Lease, plus all
options to extend validly exercised by Tenant as provided in this Article III, are herein
collectively referred to as the “Term.”

     3.04 Rent Commencement Date. As used herein the term “Rent Commencement Date” shall mean
forty-five (45) days after the Entry Date. In the event that Tenant’s Building is not in the
condition required by Article II as of the Entry Date, then Tenant shall have the right to defer
the Rent Commencement Date until December 20, 2000, by written notification to Landlord, provided
that Substantial Completion will occur by that date. If, upon such deferral of the Rent
Commencement Date, Tenant’s Building is not completed so as either to provide Tenant’s contractors
with all reasonable rights of access to Tenant’s Building necessary to perform the installation
work for the trade fixtures of Tenant by November 5, 2000, or to enable Tenant to occupy Tenant’s
Building by December 20, 2000, then Tenant shall have the alternative either to cancel this Lease
or continue to defer the Rent Commencement Date month-to-month upon written notification to
Landlord.

     3.05 Rent Commencement Date Agreement. When the Rent Commencement Date has been determined,
Landlord and Tenant shall execute a memorandum which shall expressly confirm the Base Rent, Rent
Commencement Date, Lease Year, the expiration date of the Initial Term, that construction of the
Tenant’s Building has been completed, subject to those enumerated exceptions’, that possession of
the Tenant’s Building has been accepted by Tenant, that ratifies and affirms all of the terms and
provisions of this Lease, and that affirms the Lease remains in full force and effect.

     3.06 Expansion of Leased Premises. Tenant shall have two options to expand Tenant’s Building on
two separate occasions by an aggregate amount not to exceed 200,000 additional square feet
(collectively, the “Additions”) on real property contiguous to the Premises, as described in the
attached Exhibit C, which option shall be exercised through the following procedure:

     (a) Tenant shall cause the Additions to be constructed by and at the expense of Tenant’s
contractor, under such other terms and conditions which are mutually acceptable to Landlord and
Tenant. Tenant shall select the contractor for the Additions, with the prior written approval of
Landlord, which consent shall not be unreasonably withheld or delayed.

     (b) Upon completion of each of the Additions, Tenant’s contractor shall convey good and
marketable title for each such Addition to Landlord, free and clear of all liens and encumbrances,
and for a purchase price and under those additional terms and conditions which are mutually
acceptable to Landlord

-4-

 

and Tenant. The purchase price for each such Addition shall be limited to the following elements:
(1) the cost attributed by the Landlord to the real property for the Addition; (2) the actual cost
of labor, services, materials and equipment for the construction of the Addition; (3) the actual
contractor’s or developer’s fees and profits for the Addition; (4) the actual cost of
architectural, engineering and survey fees for the Addition; and (5) the actual and reasonable
attorney’s fees and administrative expenses for the Addition, not to exceed one percent (1%) of the
construction costs incurred pursuant to section (2) above (hereinafter collectively, the “Cost of
the Addition”). Tenant’s contractor, at its expense, shall provide Landlord with a construction
audit for the Addition, prepared by an independent certified public accountant mutually agreeable
to Landlord and the contractor, which shall certify the accuracy and amount of the Cost of the
Addition.

     (c) The Additions shall not exceed, in the aggregate, 200,000 square feet in size, unless this
size is expanded by mutual agreement of the parties. The construction of each of the Additions
shall be completed within eighteen months after the exercise by Tenant of the option initiating
such construction.

     (d) In each of the amendments adding the Additions to the Lease, Tenant shall agree to extend
the Initial Term of this Lease for a period of ten (10) years beyond the date of substantial
completion for each Addition, which, in any event, shall not extend the Initial Term by an amount
of more than two (2) years.

     (e) Any real property to be purchased by Landlord from Weirton Steel Corporation (“WSC”) for
the Additions shall be included in the first option exercised by Tenant. The average cost
attributed by Landlord to the real property used in the Additions and considered in determining the
Cost of the Addition in paragraph 3.06(b) above shall not exceed Thirty Two Thousand Dollars
($32,000.00) per acre.

     (f) The expansion acreage, the expansion improvements, and the expansion base rental for each
of the Additions shall be added to the Lease by amendments mutually agreeable to Landlord and
Tenant. Following the substantial completion of each Addition, the expansion rental shall be due
and payable in advance on the same day of each month as the Base Rent.

These options to expand shall automatically expire to the extent they are not exercised by Tenant
within four (4) years from the Rent Commencement Date. Tenant shall exercise each option by
sending written notice to Landlord, as hereinafter provided, and the closing on each Addition
shall take place within sixty (60) days after the receipt of such notice by Landlord.

ARTICLE IV

Rent

     4.01 Base Rent. The Base Rent for the first five (5) Lease Years of the Initial Term shall be
$3.70 per square foot of Building area or $701,520 per year, payable monthly in advance in the sum
of $58,460; and for the second five (5) lease years of the Initial Term shall be $4.05 per square
foot of Building area or $767,880 per year, payable monthly in advance in the sum of $63,990; and
for the last two (2) years of the Initial Term shall be $4.20 per square foot of Building area or
$796,320 per year, payable monthly in advance in the sum of $66,360. Any extension of the Initial
Term in paragraph 3.06(d) above shall not exceed two (2) years in duration, and during such
extension, the Base Rent for the original structure of Tenant’s Building shall remain $4.20 per
square foot of original area of Tenant’s Building or $796,320 per year, payable monthly in advance
in the sum of $66,360. In addition to the Base Rent for the original structure of Tenant’s
Building, the annual Base Rent relating to each of the Additions shall be an amount equal to the
Cost of the Addition, as defined in paragraph 3.06(b) above, multiplied by the annual cost to
Landlord of its financing for each Addition, including, without limitation, all principal,
interest, points,

-5-

 

origination fees and all other actual costs and expenses incurred by Landlord to obtain its
financing for the acquisition of each such Addition, plus one and fifteen one hundredths percent
(1.15%).

     4.02 Partial Month Rent. If the Rent Commencement Date shall be other than the first day of a
calendar month, Base Rent shall be pro-rated for the period until the first day of the following
month by taking the amount of monthly Base Rent divided by the number of days in the month and
multiplying that amount times the number of days between the Rent Commencement Date and the first
day of the following month.

     4.03 Terms of Payment. All Rent and other payments to be made by Tenant to Landlord hereunder
shall be made payable to Landlord in current legal tender of the United States of America and sent
to Landlord at the place to which notice to Landlord is required to be sent hereunder unless
Landlord shall direct otherwise by notice to Tenant. Extensions, indulgences, or changes by
Landlord upon any occasion in the mode or time of payment of Rent or any other payment to be made
by Tenant to Landlord hereunder shall not be construed as any continuing waiver or change, or as
requiring or allowing in the future any similar change or indulgence. All Rent shall be payable as
stated without notice or demand.

     4.04 Additional Rent. All amounts other than Base Rent which Tenant is required to pay or
discharge pursuant to this Lease including, but not limited to, charges for taxes, insurance,
utilities, maintenance of the Premises and any penalties for late payment of Base Rent shall
constitute Additional Rent.

     4.05 Rent. Rent shall mean Base Rent, Additional Rent and all other sums payable hereunder by
Tenant.

     4.06 Deferment of Rent. If the Tenant’s Building shall not be available for the possession of
Tenant’s contractor for the installation of trade fixtures by the Entry Date, or the Tenant’s
Building is not substantially completed by December 20, 1999, then the obligation of Tenant to
install trade fixtures is deferred until November 5, 2000. Upon deferral, the first monthly rental
payment shall be due and owing by Tenant to Landlord on the Rent Commencement Date as delayed until
December 20, 2000.

ARTICLE V

Absolute Net Lease

     It
is the intent of Landlord and Tenant that the Rent to be paid to Landlord by Tenant be
absolutely net to Landlord so that this Lease shall yield net to Landlord without abatement,
set-off or deduction therefrom the rent as hereinabove provided, to be paid during the Term of
this Lease or any extensions hereof, and, that all costs, expenses, assessments, fees and
impositions of every kind or nature whatsoever relating to the Premises which may arise or become
due during the Term of this Lease or any extensions hereof be paid by Tenant, and Landlord be
indemnified and saved harmless by Tenant from and against the same. Tenant hereby assumes and
agrees to perform all duties and obligations with relation to the Premises, as well as the use,
operation, and maintenance thereof even though such duties and obligations would otherwise be
construed to be those of the Landlord. Nothing herein contained, however, shall be deemed to
require Tenant to pay or discharge any liens or mortgages of any character whatever which may be
placed upon the Premises by the affirmative act of Landlord or against Landlord’s interest in the
Premises.

ARTICLE VI

Use

     The Premises shall be occupied and used by Tenant for the sole purpose of conducting therein
the business of warehousing, distributing and selling clothing and accessories, novelties and
other retail

-6-

 

consumer goods. Tenant shall use and occupy the Premises in accordance with all governmental laws,
statutes, orders, ordinances, rules and regulations of any governmental authority with jurisdiction
affecting the Premises from time to time, including, without limitation, applicable zoning
ordinances. Tenant agrees to comply with all deed restrictions applicable to the Premises. In
particular, Tenant shall at all times comply with that certain Declaration of Covenants, Conditions
and Restrictions for the Three Springs Business Industrial Park, of record in the Office of the
Clerk of the County Commission of Brooke County, West Virginia in Deed Book No. 276, at page 455,
as amended from time to time (the “Declarations”). Tenant shall not use, or allow the Premises to
be used, for any purpose other than as specified herein and shall not use or permit the Premises to
be used for any unlawful, disreputable or immoral purpose or in any way that will injure the
reputation of the Premises, detract from its value, or result in violation of any certificate of
occupancy applicable to the Premises, or endanger the Premises or unnecessarily increase the
applicable insurance premiums payable with respect thereto, or permit the Premises to be occupied
in whole or in part by any other person other than Tenant, its agents, servants, employees and
invitees, except as otherwise provided herein.

ARTICLE VII

Subletting and Assignment

     7.01 Subletting and Assignment. Tenant shall not assign this Lease or sublet all or any part of
the Premises without the prior written consent of Landlord which consent shall not be unreasonably
withheld. In the event of any assignment or subletting, Tenant shall nevertheless at all times
remain fully responsible and liable for the payment of Rent and for compliance with all of its
other obligations under the terms, provisions and covenants of this Lease unless relieved therefrom
by Landlord and Tenant’s assignee shall assume in writing and agree to keep and perform all of the
terms of this Lease on the part of Tenant to be kept and performed and shall be and become jointly
and severally liable with Tenant for the keeping and performing thereof. In addition, Tenant shall
have the right to transfer and assign this Lease without Landlord’s consent to any parent,
subsidiary or affiliated company of Tenant, with Tenant remaining liable for the performance of the
terms of this Lease. For purposes of this Article, a leasehold mortgage shall be deemed an
assignment. Notwithstanding anything to the contrary in this Lease, Tenant shall have the right to
sell or transfer its stock or assets, merge with another entity or go public without Landlord’s
consent.

     7.02 Limits on Assignees. Notwithstanding anything to the contrary contained in this Lease,
Tenant shall not, without the prior written consent of Landlord (which Landlord may grant or
withhold in its sole discretion and which consent, in each instance to be effective, must expressly
state Landlord is aware that the subject assignee or subtenant, as the case may be, is a tax-exempt
entity) assign all or any part of its interest in this Lease or sublet all or any part of the
Premises, or in any other manner grant any right to use, occupy or otherwise “lease” (within the
meaning of Internal Revenue Code of 1986, Section 168(h), as amended (“Section 168(h)”)) all or any
part of the Premises, to any “tax-exempt entity,” as defined in Section 168(h), to the extent that
the aggregate portion of the Premises sublet, assigned, used, occupied or “leased” by all such
tax-exempt entities shall be more than 35% of the Premises. Tenant agrees that any assignment of
lease or subletting made in violation of the foregoing sentence will be deemed initially void, and
acknowledges that, notwithstanding such voiding, Landlord may incur damages as a result of such
violations, and Tenant agrees to indemnify Landlord from any such damages.

     7.03 Assignment by Landlord. Landlord shall have the right to transfer all or any part of
Landlord’s interest in the Lease and the Premises without the consent or approval of Tenant, which
transfer shall work an absolute release of Landlord’s liabilities and obligations hereunder arising
after the date of such assignment; provided, however, that prior to any such transfer, Landlord and
Tenant shall amend Article XX of this Lease to cause any real property taxes assessed against the
Premises and Tenant’s Building after such transfer to be paid by Landlord’s transferee.

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ARTICLE VIII

Quiet Enjoyment-Landlord’s Warranty

     Landlord covenants and agrees with Tenant that so long as Tenant keeps and performs all of the
covenants and conditions to be kept and performed by Tenant hereunder, Tenant shall have quiet,
undisturbed and continued possession of the Premises free from any claims by any persons claiming
under, by or through Landlord.

ARTICLE IX

Alterations

     9.01 Tenant’s Alterations. Tenant shall have the right, at its sole cost and expense, either at
the commencement of or during the Term of this Lease or any extension thereof to make such
alterations in and/or additions to the Premises, including without limiting the generality of the
foregoing, alterations in the water, gas and electrical wiring systems as may be necessary to fit
the same for Tenant’ s business upon first delivering to Landlord written plans and specifications
for all such work and obtaining the written approval of Landlord, which approval shall not be
unreasonably withheld, as to the materials to be used and the manner of making such alterations
and/or additions. Upon the termination of this Lease, Tenant shall not be required to remove any of
the original Improvements still in existence or any subsequent alterations or improvements, or to
restore the Premises to its original condition. At such time, such Improvements and alterations
permanently affixed (excluding Tenant’s Property as defined in Article X) as are not already the
property of Landlord shall become the property of Landlord. Tenant shall have the right to make
nonstructural alterations to the Premises without Landlord’s consent, subject to the covenants and
conditions set forth in Exhibit C, as the same may be amended, and to any rules or regulations
adopted pursuant thereto.

     9.02 Method of Alterations. All alterations, additions and improvements made by Tenant shall be
done in a good and workmanlike manner without impairing the structural soundness of the Premises
and without lessening the value thereof. All such work shall be performed in accordance with all
applicable laws, ordinances, rules, and regulations and requirements of all governmental
authorities having jurisdiction over the Premises. Before commencing any work, Tenant shall obtain
or cause to be obtained, workers’ compensation and employer’s liability insurance covering all
persons employed in connection with the work and with respect to whom death or bodily injury claims
could be asserted against Landlord and/or Tenant, and general liability insurance insuring Landlord
and Tenant against any liability that may be incurred as a result of any work done by Tenant in, to
or upon the Premises. A certificate of insurance or copy of said policy shall be delivered to
Landlord upon written request. Tenant shall procure and pay for all permits, licenses and
authorizations required in connection with any such alteration, addition or improvement, and
Landlord agrees to cooperate with Tenant, at Tenant’s expense, in procuring such permits, licenses
and authorizations.

ARTICLE X

Tenant’s Property

     10.01 Installation Removal. Tenant may, at its sole cost and expense, install any trade
fixtures, equipment, and other personal property of a temporary or permanent nature used in
connection with its business on the Premises (“Tenant’s Property”), and Tenant shall have the
right at any time during the Term of this Lease or any extensions hereof or upon expiration or
earlier termination of the Lease or any extensions hereof, provided Tenant is not in default of
any of the terms of this Lease, beyond any applicable cure period, to remove any and all such
trade fixtures, equipment, and other personal property that it may have stored or installed upon
the Premises; provided, however, that in the event of such removal, Tenant shall repair any damage
caused by the removal of such trade fixtures, equipment, and other personal property

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and restore the Premises substantially to the same condition, ordinary wear and tear excepted, in
which they were at the time Tenant took possession.

     10.02 Required Removal. In case Tenant shall decide not to remove any part of its trade
fixtures, equipment, or other personal property upon expiration or earlier termination of this
Lease, Tenant shall notify Landlord in writing not fewer than ninety (90) days prior to the
expiration of the Term of this Lease or any extensions hereof, specifying those items of trade
fixtures, equipment, or other personal property that Tenant has decided not to remove. If, within
thirty (30) days after service of such notice. Landlord shall request Tenant to remove any of said
trade fixtures, equipment, or other personal property, Tenant shall, at its own expense, at or
before the expiration of the Term of this Lease or any extension hereof, remove said trade
fixtures, equipment, and other personal property and, except for minor cosmetic damage by reason of
such removal, restore the Premises to good order and condition. Tenant will pay all costs and
expenses incurred by Landlord in removing, sorting, or disposing of Tenant’s trade fixtures,
equipment, and other personal property and repairing all damage to the Premises caused by removal
of Tenant’s trade fixtures, equipment, or other personal property which Tenant has failed to remove
despite Landlord’s request therefor. Any of Tenant’s trade fixtures, equipment, and other personal
property not removed by Tenant upon the expiration or earlier termination of this Lease or any
extensions hereof shall be considered abandoned by Tenant and may be appropriated, sold, destroyed,
or otherwise disposed of by Landlord without liability or obligation on Landlord’s part to pay or
account for same.

     10.03 Title at Termination. At the expiration or earlier termination of this Lease or any
extensions hereof, all remaining Improvements shall become and remain the property of Landlord,
free and clear of any claim or interest of Tenant or anyone claiming thereunder. At the request of
Landlord, Tenant will, at such time, execute, acknowledge, and deliver to Landlord a bill of sale
or other appropriate conveyance document evidencing the transfer to Landlord of all right, title
and interest of Tenant in and to the remaining Improvements.

ARTICLE XI

Lien or Encumbrance

     11.01 No Liens. Tenant will pay or cause to be paid all charges for all work done, including
without limitation all labor and materials for all repairs, alterations, and additions, to or upon
the Premises during the Term of this Lease or any extensions hereof and will not suffer or permit
any mechanic’s, materialman’s, or similar liens for labor or materials furnished to the Premises
during the Term of this lease or any extensions hereof to be filed against the Premises; and if any
such lien shall be filed. Tenant will either pay the same or procure the discharge thereof by
giving security or in such other manner as may be required or permitted by law within thirty (30)
days after such filing or within such shorter time period as may be required by law. Tenant shall
have the right, however, at its sole cost and expense, in its name or in the name of Landlord or in
the name of both, to contest any such lien, provided the existence of such lien pending such
contest shall not jeopardize Landlord’s interest in the Premises. Tenant shall indemnify Landlord
against, and save Landlord harmless from, any and all loss, damage, claims, liabilities, judgments,
interest, costs, expenses, and reasonable attorney’s fees arising out of the filing of any such
lien.

     11.02 No Consent to Work Lien or Encumbrance. Nothing contained herein shall constitute any
consent or request by Landlord, express or implied, to or for the performance of any labor or
services or the furnishing of any materials or other property in respect of the Premises nor as
giving Tenant any right, power, or authority to contract for or permit the performance of any labor
or services or the furnishing of any materials or other property in such fashion as would permit
the making of any claim against Landlord or the Premises in respect thereto. Nothing in this Lease
shall be construed as empowering Tenant to encumber or cause to be encumbered the title or interest
of Landlord in the Premises in any manner whatsoever.

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ARTICLE XII

Repairs and Maintenance

     12.01 Duty to Repair. During the Term of the Lease, Tenant shall, at its sole cost and
expense, keep the Premises and the adjoining sidewalks, curbs, and passageways, if required by
governmental authority, free from unlawful obstructions, and will keep the Premises in as good
condition and repair as they were upon commencement of the Term of this Lease, normal wear and tear
excepted, and will make all necessary repairs and perform commercially prudent maintenance thereto,
interior and exterior, structural and non-structural, ordinary and extraordinary, and foreseen and
unforeseen, including but not limited to, maintenance, and repair of, roofing, siding, the
plumbing, electrical wiring, air conditioning and heating equipment, maintenance of the parking
area, painting of the walls of the Improvements, and repair of all glass and casualty damage.
Tenant shall, prior to making any repair of a structural nature, deliver to Landlord written plans
and specifications for all such work and obtaining the written approval of Landlord as to the
materials to be used and the manner of making such repairs. Landlord shall not unreasonably
withhold or delay its approval of said repairs proposed to be made by Tenant. All repairs shall
conform to the Declarations.

     12.02 Definition and Standard of Repair. The term “repairs” shall include all necessary
replacements, renewals, alterations, additions, and betterments. The necessity for and adequacy of
repairs to the Improvements shall be measured by the standard which is appropriate for buildings of
similar construction and class, provided that Tenant shall in any event make all repairs necessary
to avoid any structural damage or injury to any of the Improvements. All repairs made by Tenant
shall be equal in quality and class to the original work, shall meet the same requirements as are
set out in paragraph 9.02 of this Lease to the extent necessary and shall be made in a good and
workmanlike manner and in compliance with all applicable permits and authorizations and building
and zoning laws and with all other laws, rules, regulations, and ordinances governing such work.
Tenant will perform all necessary shoring of foundations and walls of any of the Improvements and
every other act or thing for the safety and preservation thereof which may be necessary by reason
of any excavation or other building operation by Tenant upon any adjoining property or street,
alley or passageway. Tenant will not commit any waste of the Premises.

     12.03 No Obligation to Repair. Landlord shall not under any circumstances be required to
furnish any services or facilities or to make any repairs, replacements or alterations of any
nature or description in or to the Premises whether ordinary or extraordinary, structural or
non-structural, foreseen or unforeseen, or to make any expenditure whatsoever in connection with
this Lease or to maintain the Premises in any way. Tenant hereby waives the right to make repairs
at the expense of Landlord pursuant to any law in effect at the time of the execution of this Lease
or thereafter enacted, and assumes the full and sole responsibility for the condition, operation,
repair, replacement, maintenance, and management of the Premises. Landlord covenants to cooperate
with Tenant in processing claims with respect to matters covered by any insurance.

ARTICLE XIII

Requirements of Law

     After Landlord has substantially completed the Improvements, and Tenant has occupied same
without objection, Tenant shall, at its expense, comply with, or cause to be complied with, all
insurance requirements, and all laws, statutes, ordinances and regulations of federal, state,
county and, municipal authorities including, but not limited to, the Americans with Disabilities
Act (collectively, “Laws”) which shall impose any duty with respect to the physical condition of
the Premises including, but not limited to, a duty to construct additional improvements or modify
the Improvements or with respect to the conduct of Tenant’s business therein. Tenant shall have
the right at Tenant’s own expense, to object to and appeal from any administrative or judicial
decision requiring compliance and Landlord shall cooperate at Tenant’s

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expense with any such appeal and/or objection by Tenant. In the event compliance shall require
improvements or alterations to the Premises, then, Tenant shall, at Tenant’s sole expense,
construct such improvements in accordance with the provisions for Tenant’s alterations contained
in Article IX of this Lease.

ARTICLE XIV

Damage or Destruction

     14.01 Tenant’s Obligation to Rebuild. In the event of damage to or destruction of the
Improvements during the Term of this Lease by fire, the elements, or other casualty for which the
insurance carried pursuant to Article XV of this Lease entitled “Insurance” is payable, said
insurance proceeds shall be paid into an escrow account with Landlord’s first mortgage lender or a
bank selected by Landlord and agreed to by Tenant. The insurance proceeds shall be used by Tenant
for the prompt reconstruction or repair, as the case may be, of the Improvements. Tenant shall
rebuild or repair the same in such manner that the Improvements as so rebuilt or repaired shall be
of the same condition as they were prior to such damage or destruction, and shall have same rebuilt
or repaired and ready for occupancy within twelve (12) months from the time the insurance proceeds
come available, subject to Force Majeure. If the insurance proceeds exceed the cost of repair or
restoration, Tenant shall receive said excess upon completion of such repair or restoration.

     14.02 Approval of Plans and Specifications. In the event of a loss hereunder, Tenant shall
submit to Landlord the plans and specification for reconstruction or repair for Landlord’s
approval. Landlord shall have a fifteen (15) day period within which to review and approve or
disapprove the plans and specifications.

     14.03 Payment from Escrow. Amounts shall be paid out from said escrow account established
pursuant to Section 14.01 from time to time upon the certification of Tenant’s architect that said
amount is being applied to the payment of the reconstruction or repair at a reasonable cost
therefor and that the disbursement then requested, plus all previous disbursements and the amount
of any applicable “deductible” do not exceed the cost of the repair or restoration already
completed and paid for, and that the balance in said escrow account is sufficient to pay for the
estimated cost of completing the repair or restoration. If the insurance proceeds shall be less
than the cost of repair or restoration, Tenant shall pay the excess cost.

     14.04 Failure to Reconstruct; Termination. In case of Tenant’s failure to enter into the
re-construction or repair of the Improvements within six (6) months from the date of payment of such
insurance proceeds, subject to force majeure, and to prosecute said reconstruction or
repair with such dispatch as may be necessary to complete the same within twelve (12) months after
payment of such insurance proceeds, then the amount so collected, or the balance thereof remaining
in the escrow account, shall be paid to Landlord and Landlord may terminate the Lease and retain
such amounts as liquidated damages resulting from Tenant’s failure hereunder. Tenant shall have the
right to terminate the Term if less than two (2) years remain in the Term at the time of any such
casualty, and in such event Tenant shall have no obligation to rebuild the Improvements, Landlord
shall have the sole and exclusive right to adjust the loss with the insurance carriers and all
insurance proceeds shall be paid to and retained by Landlord.

     14.05 Force Majeure. “Force majeure” shall mean events beyond the control of the parties,
including, without limitation, fire, flood, tornado, or earthquake, war, riot, insurrection,
strike, lockout, boycott or embargo, acts of God, unavoidable casualties, labor disputes, and
unusual delays in transportation, unavailability of materials, adverse weather conditions not
reasonably anticipatable. Any party who asserts the occurrence of force majeure shall give written
notice as soon as reasonably practicable after the commencement of a delay caused by an event of
force majeure, and any party making claim therefor shall give a supplemental notice of the period
of time such delay caused by an event of force majeure is expected to last. However, force majeure
with respect to the Entry Date and Substantial Completion of Tenant’s

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Building as they affect paragraphs 3.04 and 4.06 of this Lease shall be defined to only include
flood, fire, tornado, insurrection, earthquake or war.

     14.06 No Abatement of Rent. Notwithstanding any contrary law, Rent shall not be suspended or
abated as a result of such damage or destruction, and restoration or rebuilding.

     14.07 Default in Payment of Rent. If, at any time after such insurance proceeds come into
possession of Tenant or are placed in escrow pursuant to this Article after destruction or damage
by casualty, Tenant is in default beyond any applicable cure period of any Rent or other charges
payable under this Lease, then Landlord shall be entitled to so much of said proceeds as may be
necessary to pay and discharge any such Rent or other charges of which Tenant is in default,
whenever and as often as any such default shall occur. Tenant shall forthwith reimburse such escrow
account by depositing therein any amount so paid out on account of Tenant’s default. Nothing herein
contained, however, shall be construed as permitting Tenant to default in the payment of Rent or
other charges herein stipulated to be paid or in the performance of any other covenants of this
Lease, and Landlord may, at its option, proceed against Tenant for the collection of such Rent or
other charges in default and recover and take possession of the Premises in accordance with the
provisions of this Lease without prejudice to Landlord’s right to the benefit of such insurance
money as security for Tenant’s performance under the terms of this Lease.

     14.08 Landlord’s Mortgage. All provisions herein contained relative to the disposition of
payments from insurance companies are subject to the requirement that, if any mortgagee who holds a
mortgage on the Premises elects, in accordance with the terms of such mortgage, to require such
insurance proceeds be paid to the mortgagee on account of the mortgage, then such payment shall be
made, but in such event, Landlord must create the complete fund in the manner set forth in this
Article to assure and complete the payment for the work of reconstruction or repair.

ARTICLE XV

Insurance

     15.01 Tenant’s Property Insurance. Tenant shall, throughout the Term of this Lease, at
Tenant’s sole cost and expense, provide and keep in force for the benefit of Landlord and Tenant,
insurance against loss or destruction of or damage or injury to any Improvements now or hereafter
erected on the Premises resulting from fire or from any hazard included in the so-called extended
coverage endorsement (including plate glass insurance, increased cost of construction endorsement,
sprinkler leakage, collapse and vandalism and malicious mischief, also known as “All Risks of
Physical Loss Coverage”). In addition to the foregoing, Tenant shall, at Tenant’s sole cost and
expense, provide and keep in force for the benefit of Landlord and Tenant, throughout the Term of
this Lease, flood insurance, only if the Premises are located within the “Federal Flood Plain
Area” of the United States, as well as insurance against loss or damage or injury or destruction
of any Improvements now or hereafter erected on the Premises resulting from water or earthquake
damage. Tenant shall provide and keep in full force all such insurance in an amount sufficient to
prevent Landlord or Tenant from becoming a co-insurer under the terms of the applicable policy,
but in no event less than the full replacement cost of the Improvements, including the fixtures
and equipment appurtenant thereto and used in connection with the Premises. Such replacement cost
shall be determined annually by a method required by the insurer(s). The deductible under each of
said policies shall be an amount not greater than Fifty Thousand Dollars ($50,000.00). Such
insurance policies to be provided for and kept in force by Tenant shall provide that the loss, if
any, be payable to Landlord and Tenant, as their respective interests may appear, except as herein
provided, and such insurance policies may exclude foundations, excavation and the usual items
customarily excluded in such insurance policies, and that the proceeds thereof shall be used to
repair or replace the damage sustained by the casualty. Landlord may require that the interest of
any mortgagee under a fee mortgage covering the Premises, be protected by proper

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endorsements to any such policies of insurance, and that duplicate originals of such policies of
insurance be delivered to such mortgagee.

     15.02 Boiler Insurance. If necessary, Tenant shall also provide and maintain insurance, at
Tenant’s cost and expense throughout the Term of this Lease, for loss or damage by explosion of
steam boilers, pressure vessels, air conditioning systems or similar apparatus to be now or
hereafter installed on the Premises, to the extent applicable. Said insurance shall be on a Boiler
and Machinery Broad Form Policy on a repair and replacement basis, with Use and Occupancy coverage
for at least one hundred twenty (120) days.

     15.03 Public Liability Insurance. During the Term, at Tenant’s sole cost and expense, Tenant
shall maintain in full force and effect broad form commercial or comprehensive general liability
insurance, including blanket contractual liability coverage specifically endorsed to provide
coverage for the obligations assumed by Tenant pursuant to the Lease against claims and liability
for personal injury, bodily injury, death or property damage occurring on, in or about the
Premises, with limits of liability of not less than Three Million Dollars ($3,000,000.00) arising
out of any one occurrence or annual aggregate. Tenant shall cause such insurance policy or policies
to name Landlord, and/or any successor Landlord and Landlord’s mortgagee as additional insureds, as
their interests may appear.

     15.04 Workers’ Compensation. Employer’s Liability Insurance. Tenant shall also provide and
maintain, at Tenant’s sole cost and expense throughout the Term of this Lease, workers’
compensation insurance with statutory limits of liability and employer’ s liability insurance with
limits of liability of not less than Five Hundred Thousand Dollars ($500,000.00) in respect of any
work or other operations done or performed on or about the Premises.

     15.05 Business Interruption. Tenant shall, during the Term of this Lease, at its sole cost and
expense, procure and maintain business interruption (or use and occupancy) insurance including, at
a minimum, coverage for Rent and other charges for which Tenant is obligated hereunder.

     15.06 Insurance on Tenant’s Property. It is understood and agreed that Tenant may self-insure
with respect to any damage to or destruction of Tenant’s Property.

     15.07 No Separate Insurance. Tenant shall not take out separate insurance concurrent in form or
contributing in the event of loss with that required herein to be furnished by Tenant unless
Landlord is included therein as an additional insured, and as loss payee with loss payable as set
out herein. Tenant shall immediately notify Landlord whenever any such separate insurance is taken
out and shall deliver the policy or policies or duplicates thereof, or certificates evidencing the
same, as provided herein.

     15.08 Conduct of Business. Tenant shall comply with all requirements of said insurance policies
and shall not conduct or allow to be conducted business or other activities or fail to maintain or
take other actions with regard to the Premises in such a manner as will result in a decrease in the
recovery thereunder. Any insurance proceeds payable by reason of any insured loss pursuant to this
Article XV shall, subject to the rights of the holders of any mortgagee upon the Premises, be used
exclusively for the purpose of restoring and rebuilding the Premises. Subject to the foregoing,
Tenant shall have the sole right to adjust with the insurance carriers the amount of the loss upon
any such policies, and Landlord shall, at Tenant’s cost and expense, cooperate fully with Tenant in
order to obtain the largest possible insurance recovery and shall execute any and all consents and
other instruments and take all other actions necessary or desirable in order to effectuate the same
and to cause such proceeds to be paid; provided, however, that in the event of a

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termination pursuant to the provisions of this Lease, Landlord shall have the right to adjust the
amount of the loss with the insurance carriers.

     15.09 Requirements of Policies.

     (a) All policies required to be carried pursuant to this Article XV:

     (i) shall be written and signed by solvent and responsible insurance companies
authorized to do business in the jurisdiction wherein the Premises are located, with a
rating, reasonably acceptable to and approved by Landlord and its Mortgagee.

     (ii) shall contain an agreement by the insurer that such policy or policies shall
not be canceled or non-renewed without at least fifteen (15) days prior written notice
to Landlord and Tenant;

     (iii) may be carried under so-called blanket policies, provided that the
protection afforded thereunder as to the Premises shall be not less than that which
would have been afforded under separate policy or policies relating only to the
Premises and provided, however, any such policy of blanket insurance shall specify
therein, or Tenant shall furnish Landlord a written statement from the insurer under
such policy so specifying, the amount of the total insurance allocated to the Premises,
which account shall be not less than the amount required herein and any such policy
shall comply in all respects with the requirements set out in this Article.

     (iv) may be carried under a combination of primary insurance and umbrella
coverage; and;

     (v) shall be primary insurance by the party obligated under Article XV, which will
not call upon any other insurance effected or procured by the other party for defense,
contribution or payment.

     (b) Tenant retains full responsibility for payment of all deductibles under each policy
provided for hereunder.

     (c) Annually, Tenant will promptly furnish certificates evidencing that the insurance required
pursuant to this Article XV is in full force and effect. If the certificates of insurance do not
provide for fifteen (15) days prior written notice of cancellation or non-renewal to Landlord and
Landlord’s mortgagee, Tenant shall no later than five (5) days prior to termination by cancellation
or non-renewal provide to Landlord and its mortgagee paid receipts evidencing continuation or
renewal of insurance.

     (d) If Tenant shall fail or refuse to effect or maintain any of said insurance, Landlord may,
but shall have no obligation to do so, effect or maintain said insurance and the amount of money so
paid, with interest at the Prime Rate, shall be payable by Tenant to Landlord as Additional Rent
immediately due and payable hereunder.

     15.10 Release, Waiver of Subrogation. Tenant hereby releases Landlord and Landlord’s
respective officers, directors, employees and agents, from liability or responsibility for any loss
or damage in, about, or to the Premises (including, without limitation, loss or damage to Tenant’s
personal property, or Tenant’s business, loss arising from any act or neglect of co-tenants or
other occupants of the Premises) and this

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release shall apply notwithstanding the fault or negligence of Landlord or anyone for whom Landlord
may be responsible. The aforesaid policies shall contain an endorsement recognizing this release
and waiving all rights of subrogation by the respective property and liability insurance carriers.

ARTICLE XVI

Indemnification of Landlord

     Unless caused by the acts, omissions or negligence of Landlord, its agents, servants or
employees, Tenant will defend, indemnify, and hold harmless Landlord from and against any and all
liabilities, claims, losses, damages, actions, judgments, costs, and expenses (including without
limitation reasonable attorney’s fees and expenses) of every kind imposed upon or asserted against
Landlord or Landlord’s title in the Premises arising by reason of or in connection with (a)
Tenant’s default under this Lease and the ownership by Tenant of the interest created in this
Lease or Tenant’s possession, use, occupancy, or control of the Premises; (b) any accident, injury
to or death of persons, or loss of or damage to property occurring on or about the Premises or
adjoining public passageways, (c) the possession, operation, use, misuse, maintenance, or repair
of the Premises; (d) any damage to the environment and any property and persons injured thereby;
or (e) any failure on the part of Tenant to perform or comply with any of the terms of this Lease.
If Tenant fails to defend any action seeking to impose any such liability, Tenant will pay
Landlord all reasonable costs, expenses, and attorney’s fees incurred by Landlord in effecting
such defense, in addition to any other sums which Landlord may be called upon to pay by reason of
the entry of a judgment against Landlord in the litigation in which such claim is asserted.
Landlord shall not be responsible for the loss of or damage to property or injury to or death of
persons occurring in or about the Premises by reason of any existing or future condition, defect,
matter, or thing in the Premises, or the property of which the Premises are a part, or for the
acts, omissions, or negligence of other persons or tenants in and about the Premises; and Tenant
agrees to defend, indemnity, and hold Landlord harmless from and against all claims and liability
for same except such as are determined to have been caused by the acts, omissions or negligence of
Landlord, its agents, servants or employees. Wherever Tenant has a duty hereunder to defend,
indemnify and hold Landlord harmless. Landlord shall (a) give Tenant prompt notice of such claim,
(b) grant Tenant sole authority to settle or defend such claim and (c) cooperate with Tenant in
any reasonable manner in the defense of such claim.

ARTICLE XVII

Condemnation

     17.01 Authority. If eminent domain proceedings are instituted by any entity having powers of
eminent domain, Landlord shall have the exclusive right and authority to act in said proceedings,
although Tenant may participate in such proceedings at its expense if it so desires.

     17.02 Taking. Subject to the rights of Tenant hereinafter set forth. Tenant hereby irrevocably
assigns to Landlord any award or payment to which Tenant may become entitled by reason of any
taking of the Premises, or any part thereof, in or by condemnation or other eminent domain
proceedings pursuant to any law or by reason of the temporary requisition of the use or occupancy
of the Premises or any part thereof by any governmental authority, whether same shall be paid or
payable in respect of Tenant’s leasehold interest hereunder or otherwise, but nothing in this Lease
shall impair Tenant’s right to any award or payment on account of Tenant’s trade fixtures,
equipment, and other tangible property, moving expenses, loss of business, and the like, if
available, to the extent Tenant shall have a right to a separate claim therefor against the
appropriate governmental authority, but in no event, shall any separate claim be based upon the
value of Tenant’s leasehold interest. To the extent of such right, Tenant shall not be deemed to
have assigned the same to Landlord, and Tenant shall be entitled to participate in any such
proceedings described in this section at Tenant’s sole expense.

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     17.03 Termination. If all or substantially all of the Premises shall be taken in or by such
proceedings, or if Landlord shall convey all or substantially all of the Premises under the threat
of the exercise of the power of eminent domain, and if Tenant determines in good faith and
exercising reasonable judgment that the remaining portion of Premises is no longer suitable to
operate thereon the business then being operated, Tenant shall, within sixty (60) days after
receipt of notice of any such taking, give written notice to Landlord of its intention to terminate
this Lease as of the day preceding the date of the vesting of title to the Premises or portion
thereof in the condemning authority, and all Rent and other amounts payable by Tenant hereunder
shall be apportioned as of the date of such vesting.

     17.04 Restoration. If less than all or less than substantially all of the Premises shall be
taken by condemnation or other eminent domain proceedings, or if the use or occupancy of the
Premises or any part thereof shall be temporarily requisitioned by any governmental authority,
civil or military, then this Lease shall continue in full force and effect with an equitable
abatement or reduction of Rent or other amounts payable by Tenant hereunder, in light of such
taking or requisition. In the event of any such lesser taking, Landlord shall promptly make payment
to Tenant out of the award, payment, or compensation received by Landlord, and Tenant shall use
said funds, in the same manner as insurance proceeds are used to repair casualty damage hereunder,
to promptly repair any damage caused by any such taking or requisition such that, after completion
of such repair, the Premises shall be as nearly as possible in a condition as good as the condition
thereof immediately prior to such taking or requisition, ordinary wear and tear excepted, provided
that Tenant shall not be obligated to expend an amount therefor in excess of the proceeds received
by Tenant from Landlord. Any proceeds remaining hereunder shall be retained by Landlord.

ARTICLE XVIII

Warranties and Representations

     18.01 Landlord Warranties. Landlord hereby represents and warrants to Tenant as
follows:

     (a) Landlord is a West Virginia public corporation which is duly organized and is in good
standing under the laws of the State of West Virginia. Landlord has full power and authority to
enter into, deliver and perform this Lease and to consummate the transactions contemplated hereby,
and this Lease and all documents to be delivered to Tenant pursuant to this Lease are, or at the
time of delivery will be, duly executed and delivered by Landlord and duly authorized by all
necessary corporate action, and are the legal, valid and binding obligations of Landlord,
enforceable in accordance with their respective terms.

     (b) The execution of this Lease and all documents to be delivered by Landlord to Tenant in
connection herewith, and the consummation of the transactions contemplated hereunder will not
violate or conflict with or constitute a breach of or default under any provisions of the Bylaws of
Landlord, any other material agreement to which the Landlord is a party, or any law concerning the
Premises.

     (c) Landlord is not aware of any pending or threatened litigation, legal proceeding,
arbitration, assessment, governmental investigation or other proceeding against Landlord which
would materially affect its ability to perform its obligations pursuant to the terms of this Lease.

     (d) KLM has obtained a Phase I environmental site assessment for the Premises performed by GAI
Associates, Inc. dated as of June, 1999 (the “Phase I Report”), and which shall be updated as of
the Entry Date, a copy of which will be provided to Tenant. No condition in this Phase I Report
shall render the Improvements unfit for the use by the Tenant contemplated in Article VI above. If
Tenant does not object to the environmental condition of the Premises or request additional
environmental testing in writing within ten (10) days after delivery of this Phase 1 Report, as
updated, Tenant shall be deemed to have approved the environmental condition of the Premises.

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     (e) Landlord shall cause all reasonable measures to be taken to contain, remove or remediate
any discharge of Regulated Substances at Tenant’s Building or on the Premises in compliance with
all applicable environmental laws, so long as such discharge was not caused by Tenant or its
directors, officers, employees, contractors, subcontractors, agents, invitees or other
representatives.

     (f) As of the Rent Commencement Date, Landlord shall own fee simple title to the Premises, and
the Premises shall not be subject to any lien, deed of trust, mortgage, purchase option, right of
first refusal or other similar encumbering instrument which has the potential to extinguish
Tenant’s leasehold interest under this Lease, except to the extent of the Declarations. Landlord
shall put Tenant in complete and exclusive possession of the Premises as of the Rent Commencement
Date.

     (g) Landlord shall provide Tenant with copies of Landlord’s title insurance policy dated as of
February 25, 1999, for those portions of the Premises previously owned by the Landlord, and with a
copy of the Landlord’s title insurance commitment for those portions of the Premises being
purchased from WSC not less than fifteen (15) days prior to closing on the acquisition of the WSC
property, together with copies of the documents referred to therein as exceptions to the title of
the Premises. If Tenant has not objected to any exception to the title of the real property
contained therein within ten (10) days after its receipt of such title information, then Tenant
shall be deemed to have approved the condition of title to the Premises. Irrespective of the
representations, warranties and obligations of Landlord contained herein, Tenant may not object to
matters affecting title to the Premises which are disclosed in such title information and not
raised by the Tenant as objections to title as permitted herein.

     (h) Tenant shall be the third-party beneficiary or Landlord’s assignee of any and all
warranties received from the KLM for the materials and equipment used in the construction of the
Improvements to the extent provided by paragraph 4 of the Purchase Agreement. In particular, the
roof for the Improvements shall have a twenty (20) year limited warranty from the manufacturer as
assigned by KLM.

     (i) Pursuant to the terms of the Purchase Agreement, Tenant has the right to approve the
plans and specifications for the Improvements (the “Details”) and the construction schedule for
the Improvements (the “Construction Schedule”). Upon the approval of the Details and Construction
Schedule, KLM is required pursuant to paragraph 1.d of the Purchase Agreement to promptly proceed
with the construction of the Improvements in a good and workmanlike manner and to prosecute such
construction to completion with due diligence and in accordance with the Details and all
applicable laws, ordinances, rules, regulations, orders and requirements of all governmental
authorities having jurisdiction over the Improvements and the Premises.

     (j) Pursuant to the terms of the Purchase Agreement, Landlord has required KLM not to create
any liens or encumbrances whatsoever upon the Premises or the Improvements without the prior
written consent of the Landlord, except for a leasehold deed of trust lien or security agreement
granted by KLM solely to finance construction of the Improvements in an amount that shall not
exceed the fair market value of the Improvements, as completed. As of the Rent Commencement Date,
Landlord shall provide the Improvements and the Premises to Tenant free from all mechanic’s,
laborer’s and materialman’s liens, or with any remaining liens properly bonded pursuant to West
Virginia law.

     (k) At its own risk and expense, Tenant shall have the right to cause its contractors to
enter upon the Premises as of the Entry Date to install the trade fixtures of the Tenant in the
Improvements, and as of the Entry Date, the Tenant’s contractors shall have all reasonable rights
of access to the Improvements necessary to perform the installation work for these trade fixtures;
provided, however, that the installation of these trade

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fixtures by Tenant’s contractors shall not unreasonably interfere with the completion of the
construction of the Improvements on the Premises and the surfacing of the parking areas for the
Improvements by KLM. Prior to the Entry Date, Tenant shall provide Landlord with written evidence
that Landlord and KLM are named as additional insureds on liability insurance to be maintained by
Tenant at its own expense with such coverages, limits of liability, term and carriers as are
provided in Article XV above. In addition, Tenant shall provide satisfactory evidence to the
Landlord that Tenant’s contractors have registered with the West Virginia Workers’ Compensation
Fund and have provided all workers’ compensation coverage as required by West Virginia law.

     (l) On the Entry Date, the Premises shall be connected to the electric and gas utilities
serving the municipality in which the Premises are located, and to the water and sewer systems of
such municipality. Landlord shall not take or permit any person claiming under Landlord to take
any action which shall interrupt or interfere with any electric, gas, water or sewage service to
the Premises.

     18.02 Tenant Warranties. Tenant hereby represents and warrants to Landlord as follows:

     (a) Tenant is a Pennsylvania corporation which has duly qualified to conduct business in and
is in good standing under the laws of the State of West Virginia. Tenant has full power and
authority to enter into, deliver and perform this Lease and to consummate the transactions
contemplated hereby, and this Lease and all documents to be delivered to Landlord pursuant to this
Lease are, or at the time of delivery will be, duly executed and delivered by Tenant and duly
authorized by all necessary corporate action, and are the legal, valid and binding obligations of
Tenant, enforceable in accordance with their respective terms.

     (b) The execution of this Lease and all documents to be delivered by Tenant to Landlord in
connection herewith, and the consummation of the transactions contemplated hereunder will not
violate or conflict with or constitute a breach of or default under any provisions of the Articles
of Incorporation or the Bylaws of Tenant, any other material agreement to which the Tenant is a
party, or any law concerning the Premises.

     (c) Tenant is not aware of any pending or threatened litigation, legal proceeding,
arbitration, assessment, governmental investigation or other proceeding against Tenant which would
materially affect its ability to perform its obligations pursuant to the terms of this Lease.

     (d) Tenant shall pay all fees, charges or assessments for all utilities to the Premises and
the Improvements for utility services consumed from the Rent Commencement Date until expiration of
the term of this Lease or any holding over thereafter, and shall indemnify, defend and hold
Landlord harmless from any and all such charges.

     (e) Tenant shall operate the Improvements and occupy the Premises in compliance with the
Declarations.

ARTICLE XIX

Default

     19.01 Events of Default. Each of the following shall be deemed a default by Tenant:

     (a) Tenant’s failure to pay Rent when such becomes due as provided in Articles IV and V
and/or any other charges or payments herein reserved, included or agreed to be treated or
collected as Rent and/or any other charge, expense or cost herein agreed to be paid by Tenant,
provided that Landlord shall have first

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given Tenant ten (10) days’ prior written notice and opportunity to cure the same, with no cure
having been made within such ten (10) day period; or

     (b) Tenant’s failure to perform its following obligations and responsibilities under this
Lease: (1) the failure of Tenant to cause the Additions to be constructed as provided under Article
III; (2) the failure of Tenant to pay all costs, expenses, assessments, fees and impositions of
every kind relating to the Premises during the Term of this Lease and to indemnify Landlord
therefrom as provided in Article V; (3) the failure of Tenant to perform all duties and obligations
with regard to the Premises as well as the use, operation and maintenance thereof as provided under
Article V; (4) the use of the Premises for anything other than a warehousing and distribution
facility for clothing, accessories, novelties and other retail and consumer goods, including their
sale at the Premises, as provided in Article VI; (5) the failure of Tenant to comply with the
Declarations or to otherwise utilize the Premises for any unlawful, disreputable purpose, or to
endanger the Premises or allow the Premises to be occupied by any person other than Tenant in
violation of Article VI; (6) the subletting or assignment of this Lease in violation of Article
VII; (7) the failure of Tenant to abide by Article IX in making alterations, additions and
improvements to the Premises; (8) the failure of Tenant to install and remove trade fixtures,
equipment and other personal property at the Premises in compliance with Article X; (9) the failure
of Tenant to keep the Premises free from any liens and encumbrances as required by Article XI; (10)
the failure of Tenant to repair and maintain the Premises as required by Article XII; (11) the
failure of Tenant to comply with all insurance requirements, laws, statutes, ordinances and
regulations as required by Article XIII; (12) the failure of Tenant to repair, reconstruct and
restore the Premises as required by Article XIV; (13) the failure of Tenant to maintain insurance
coverage in the manner provided in Article XV; (14) the failure of Tenant to indemnify the Landlord
as provided under Article XVI; (15) the failure of Tenant to abide by the condemnation procedure
set forth in Article XVII; (16) the failure of Tenant to comply with the signage requirements of
Article XX; (17) the failure of the Tenant to subordinate its interest in this Lease and to attorn
to any successor to the Landlord as provided in Article XXV; (18) the failure of Tenant to grant
Landlord access to the Premises as provided in Article XXVI; (19) the failure of Tenant to comply
with its environmental obligations as provided in Article XXVII; (20) the failure of Tenant to
provide estoppel certificates to the Landlord as provided in Article XXIX; (21) the failure of
Tenant to provide balance sheets or financial statements and employment reports to Landlord as
required by Article XXX; and any such default shall continue for thirty (30) days after written
notice from Landlord, or within a reasonable time thereafter if the default is of such a nature
that it cannot be cured within such thirty (30) day period, and Tenant does not thereafter complete
the same in good faith and with reasonable diligence, any other terms, conditions or covenants of
this Lease to be observed by Tenant; or

     (c) The adjudication of Tenant as a bankrupt or insolvent; or the making by Tenant of a
general assignment for the benefit of creditors; or the appointment of a receiver in equity for
Tenant’s Property, provided such appointment is not released, bonded according to law or otherwise
provided for by indemnity within thirty (30) days after written notice thereof first given to
Tenant, within a reasonable time after the occurrence thereof; or the appointment of a trustee,
custodian or receiver for Tenant’s Property in a reorganization, arrangement or other bankruptcy
proceeding; or Tenant’s filing of a voluntary or involuntary petition in bankruptcy or for a
bankruptcy organization, liquidation or arrangement; or Tenant’s filing of an answer admitting
bankruptcy or agreeing to a bankruptcy reorganization, liquidation or arrangement.

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     19.02 Landlord’s Rights Upon Tenant’s Default. In the event of any default set forth in
paragraph 19.01, Landlord, in addition to any other rights or remedies it may have at law or in
equity, may do any one or more of the following:

     (a) elect to terminate this Lease; or

     (b) perform, on behalf and at the expense of Tenant (entering upon the Premises for such
purpose, if necessary), any obligation of Tenant under this Lease which Tenant has failed to
perform and of which Landlord shall have given Tenant notice, the cost of which performance or
liability by Landlord shall be deemed Additional Rent or incurred for the account of Tenant and
Tenant shall reimburse Landlord therefor or save Landlord harmless therefrom upon demand provided,
however, that Landlord may not cure any such default described in this subparagraph prior to the
expiration of the waiting period established in paragraph 18.01, but only after notice to Tenant if
the curing of such default prior to the expiration of said waiting period is reasonably necessary
to protect the Premises or Landlord’s interest in the Premises, or to prevent injury or damage to
persons or property. If Tenant shall fail to reimburse Landlord upon demand for any amount paid for
the account of Tenant hereunder, said amount shall be added to and become due as a part of the next
payment of Rent due hereunder. Notwithstanding anything to the contrary contained herein, in the
case of emergency, notice required pursuant to this paragraph 19 may be given verbally or in any
other reasonably due and sufficient manner having regard to the emergency and the attending
circumstances. If any such notice shall not be given in the manner described in Article XXIII of
this lease entitled “Notice,” then as soon thereafter as practicable, such notice shall be followed
up by notice given in the manner prescribed in said Article. No entry by Landlord, in accordance
with the provisions of this Article, shall be deemed to be an eviction of Tenant. Landlord’s
performance of any such covenant shall neither subject Landlord to liability for any loss,
inconvenience or damage to Tenant nor be construed as a waiver of Tenant’s default or of any other
right or remedy of Landlord in respect of such default, or as a waiver of any covenant, term or
condition of this Lease; or

     (c) Immediately, using such force as may be reasonably necessary, re-enter upon the Premises,
remove all persons and property therefrom, and store such property in a public warehouse or
elsewhere at the sole cost and for the account of Tenant, with reasonable notice but without resort
to legal process, without being deemed guilty of trespass or becoming liable for any loss or damage
which may be occasioned thereby (except for any loss or damage resulting from or caused by the
gross negligence or criminal act of Landlord or its employees, agents or contractors), and without
such re-entry being deemed to terminate this Lease.

     19.03 Re-letting. In the event Landlord re-enters upon the Premises as provided in clause (c)
of the foregoing paragraph 19.02, or takes possession of the Premises pursuant to legal proceedings
or pursuant to any notice provided for by law. Landlord may in addition to all other rights and
remedies provided at law or in equity:

     (a) Landlord may terminate this Lease and forthwith repossess the Premises and remove all
persons or property therefrom and be entitled to recover from Tenant, as damages, the sum of money
equal to the total of (i) the reasonable cost of recovering the Premises, (ii) the accrued and
unpaid rentals owed at the time of termination plus interest thereon from such due date at Prime
Rate, as hereinafter defined, plus 3%, (iii) the discounted net present value (at 11.5% discount
rate) of the balance of the fixed annual minimum Base Rent for the remainder of the Term, and (iv)
any other sum of money and damages owed by Tenant to Landlord, without Landlord being obligated to
wait until the expiration of the Term of this Lease; or

     (b) Landlord may terminate Tenant’s right of possession (but not this Lease) and may repossess
the Premises without demand or notice of any kind to Tenant and without terminating this Lease in
which event

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Landlord may, but shall be under no obligation to do so, relet the same for the account of Tenant
for such rent and upon such terms as shall be satisfactory to Landlord. For the purpose of such
reletting, Landlord is authorized to make repairs, changes, alterations or additions to the
Premises to make same relettable, and (i) if Landlord shall be unable to relet the Premises, or
(ii) if the same are relet and sufficient sums shall not be realized from such reletting (after
paying: (a) the unpaid rentals due under the Lease earned, but unpaid at the time of reletting plus
interest thereon at the lesser of the Prime Rate or the maximum rate permitted by applicable law,
(b) the cost of recovering possession, including Landlord’s reasonable attorney’s fees, (c) all of
the costs and expenses of reletting including decorations, repairs, changes, alterations and
additions by Landlord, and (d) the expense of the collection of the Rent accruing therefrom) to
satisfy the Rent and all other charges provided for in this Lease to be paid by Tenant then Tenant
shall pay to Landlord, as damages, the sum equal to the amount of the Rent and other expenses
payable by Tenant for such period or periods, or if the Premises have been relet, Tenant shall
satisfy and pay any such deficiency upon demand therefor from time to time and Tenant agrees that
Landlord may file suit to recover any sums falling due under the terms of this Article from time to
time upon one or more occasions without Landlord being obligated to wait until expiration of the
Term of this Lease. Such reletting shall not be construed as an election on the part of Landlord to
terminate this Lease unless a written notice of such intention be given to Tenant by Landlord.
Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect
to terminate this Lease for such previous breach if it has not been cured. Failure of Landlord to
declare any default immediately upon occurrence thereof or delay in taking any action in connection
therewith shall not waive such default but Landlord shall have the right to declare any such
default at any time thereafter.

     (c) As used herein Prime Rate shall mean the base rate on corporate loans at large U.S. money
centers or commercial banks as published from time to time by the Wall Street Journal adjusted
with each change in each published rate.

     19.04 Damages Upon Termination. In the event that Landlord at any time terminates this Lease
for any default by Tenant, in addition to any other remedies Landlord may have, Landlord may
recover from Tenant (i) all damages Landlord may incur by reason of such default, including,
without limitation, all repossession costs, brokerage commissions, court costs, reasonable
attorneys’ fees, alteration and repair costs, (ii) the accrued and unpaid rentals owed at the time
of termination plus interest thereon from such due date at Prime Rate, plus 3%, (iii) the
discounted net present value (at 11.5% discount rate) of the balance of the fixed annual minimum
Base Rent for the remainder of the Term, and (iv) any other sum of money and damages owed by
Tenant to Landlord. All such amounts shall be immediately due and payable from Tenant to Landlord.
Landlord shall be obligated to mitigate its damages in connection with any such default.

ARTICLE XX

Signs

     Tenant shall have the right to erect, at its expense and in accordance with all applicable
laws, ordinances, rules and regulations, and the Declarations, in or on the Premises such sign or
signs as it may desire.

ARTICLE XXI

Taxes and Other Liens

     21.01 Impositions. Tenant shall pay, before any fine, penalty, interest, or cost may be added
thereto for the nonpayment thereof, all taxes and assessments (Landlord is not subject to real
property taxes pursuant to the West Virginia Code), real property taxes, water and sewer charges,
incinerator and fire fees, vault charges, license and permit fees, and other governmental levies
and charges, general and special, ordinary, and extraordinary, unforeseen as well as foreseen, of
any kind and nature (collectively, “Impositions”) which

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may be charged, assessed, levied, imposed upon or become due and payable, during the Term of this
Lease; provided, however, that if, by law, any Imposition is payable or at the option of the
taxpayer may be paid in installments (whether or not interest shall accrue on the unpaid balance
thereof), Tenant may pay the same (and any accrued interest on the unpaid balance) in installments
and shall be required to pay only such installments as may become due during the Term of this Lease
as the same respectively become due and before any fine, penalty, interest, or cost may be added
thereto for nonpayment thereof; and provided further, that any Imposition relating to a fiscal
period of a taxing authority, a part of which period is included within the Term of this Lease and
a part of which is included in a period of time before the commencement of the Term or after the
termination of this Lease, other than a termination of this Lease pursuant to Article 18, shall
(whether or not such Imposition shall be assessed, levied, confirmed, imposed, or become a lien upon
the Premises or shall become payable, during the Term of this Lease) be appropriately pro rated
between Landlord and Tenant.

     21.02 Tax on Tenant Additions. Tenant shall pay all additional taxes levied, assessed or
becoming payable by reason of the improvements, alterations or additions to the Premises installed
by Tenant at any time during the Term of this Lease.

     21.03 Exceptions. Nothing in this Lease shall require Tenant to pay any franchise, corporate,
estate, inheritance, succession, capital levy, stamp, transfer or similar tax of Landlord, or any
income, excess profits, revenue or similar tax or any other tax, assessment, charge, or levy upon
the basic rent, or any other rents payable under this Lease, nor shall any tax, assessment, charge,
or levy of the character described in this Section 21.03 be deemed to be included within the term
“Imposition”; provided, however, that if at any time under the laws of the State or any political
subdivision thereof in which the Premises is located a future change in the method of taxation or
in the taxing authority, or for any other reason, a franchise, income, transit, profit or other tax
or governmental imposition, however designated, shall be levied against Landlord in substitution in
whole or in part for any imposition, or in lieu of additions to or increases of said impositions
then said franchise, income, transit, profit or other tax or governmental imposition shall be
deemed to be included within the term “Imposition,” and Tenant shall pay and discharge such
Imposition in accordance with paragraph 21.01 in respect of the payment of Impositions, to the
extent it would be payable if the Premises were the only property of Landlord subject to such
Imposition.

     21.04 Proof of Payment. Tenant agrees to submit to Landlord official receipts evidencing
payment of said Impositions at the place at which rental payments are required to be made no more
than ten (10) days before said Impositions or other charges would otherwise become delinquent.

     21.05 Refunds. If Landlord shall receive a refund of any Imposition theretofore paid by Tenant
pursuant to the provisions hereof, such refund, net of Landlord’s costs of recovery, shall be
promptly paid to Tenant.

     21.06 Protest. If Tenant shall, in good faith, desire to contest the validity of such
Impositions, Tenant shall have the right to do so without being in default hereunder provided that
Tenant shall give Landlord prompt written notice of Tenant’s intention to institute such legal
proceedings as are appropriate, which proceedings shall be promptly instituted and conducted in
good faith and with due diligence; such proceedings shall suspend the collection of such
Impositions, and the Premises shall not be in danger of being sold, forfeited, or lost; and if
required by law Tenant shall furnish Landlord the appropriate governmental agency with a bond made
by a surety company qualified to do business in the State in which the Premises is located or shall
pay cash to a recognized escrow agent in the County within which the Premises is located in one and
one-half (1-1/2) times the amount of such Impositions, conditioned to pay such Impositions when the
validity thereof shall have been finally determined, which said written notice and

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security shall be given by Tenant to Landlord or the appropriate governmental agency not fewer
than ten (10) days before such Impositions proposed to be contested would otherwise become
delinquent. Upon the conclusion of such contest, Landlord shall return to Tenant the security
hereinabove required to be deposited by Tenant, provided that Tenant shall first evidence payment
of such Impositions.

     21.07 Requirements of Mortgage. In the event the financing institution where Landlord has
financing on the Premises shall require Landlord to prepay the Impositions in monthly installments
of one-twelfth (l/12th) of the annual amount thereof, then upon written notice and demand Tenant
shall make to said institution monthly payments of one-twelfth (l/12th) of such Impositions.

ARTICLE XXII

Utilities

     22.01 Payment of Charges. Tenant shall, during the Term of this Lease or any extensions
hereof, pay and discharge punctually as and when the same shall become due and payable without
penalty all water and sewer rents, rates, and charges, charges for removal of waste materials, and
charges for water, steam, heat, gas, electricity, light, and power, and other service or services
furnished to the Premises or the occupants thereof during the Term of this Lease or any extensions
hereof, and shall indemnify Landlord against any and all liability on such account.

     22.02 Provision of Services. Landlord shall not be required to furnish any services or
facilities to the Premises and shall not be liable for any failure of water supply or electric
current or of any service by any utility, nor for injury or damage to person (including death) or
property caused by or resulting from steam, gas, electricity, water, heat, or by rain or snow that
may flow or leak from any part of the Premises or from any pipes, appliances, or plumbing works of
the same or from the street or subsurface or from any other place, nor for interference with light
or other incorporeal hereditaments or easements, however caused, unless due to the affirmative acts
or negligence of Landlord, its agents, servants or employees. Tenant hereby assumes the full and
sole responsibility for the condition, operation, repair, replacement, maintenance, and management
of the Premises.

ARTICLE XXIII

Holding Over

     If Tenant or anyone claiming under Tenant remains in possession of the Premises at the
expiration of the Term, without having duly exercised its right, if any, to extend or further
extend the Term, such continuing possession shall create a month-to-month tenancy on the terms
herein, specified, if Rent in the amount of one hundred and twenty-five percent (125%) of the
immediately preceding monthly installment of Rent is paid by Tenant and accepted by Landlord. Such
tenancy may be terminated at the end of any month thereafter by either party by giving at least
thirty (30) days’ notice thereof to the other party.

ARTICLE XXIV

Notice

     24.01 Notice Address. Any notice or demand which either party hereto either is required to or
may desire to serve upon the other, must be in writing, and shall be sufficiently served if (i)
personally delivered, (ii) sent by registered or certified mail, postage prepaid, or (iii) sent by
commercial overnight carrier, and addressed, in the instance of Landlord, to:

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West Virginia Economic Development Authority

1018 Kanawha Boulevard, East, Suite 501

Charleston, West Virginia 25301-2827 Attn:

David A. Warner, Executive Director

with a copy to:

William M. Herlihy, Esquire

SPILMAN THOMAS & BATTLE, PLLC

300 Kanawha Boulevard, East

P. O. Box 273

Charleston, WV 25321-0273

or any other address which Tenant may be notified of in, writing by Landlord, and in the instance
of Tenant, to:

Pennsylvania Fashions, Inc.

155 Thornhill Road

Warrendale, PA 15086

Attention: Cary Klein, President & C.E.O.

with a copy to:

Pennsylvania Fashions, Inc.

155 Thornhill Road

Warrendale, PA 15086

Attn: Vice President of Real Estate

and with a copy to:

John J. Edson, Esquire

Bartony, Hare & Edson

Law and Finance Building, Suite 1801

429 Fourth Avenue

Pittsburgh, PA 15219

or such other address which Landlord may be notified in writing by Tenant.

     24.02 Service of Notice. Such notice shall be deemed to have been served within three (3) days
of the time of the mailing thereof or upon receipt in the event of personal service or overnight
courier; provided, however, that should such notice pertain to the change of address to either of
the parties hereto, such notice shall be deemed to have been served upon receipt thereof by the
party to whom such notice is given.

ARTICLE XXV

Subordination

     25.01 Lease Subordinate. So long as Tenant receives a non-disturbance agreement from the
appropriate lessor, mortgagee or holder of a deed of trust, this Lease and all of Tenant’s right,
title, and interest in and under this Lease shall be subject, subordinated, and inferior to the
lien of any and all ground leases, underlying leases, mortgages, and deeds of trust and to any and
all terms, conditions, provisions, extensions, renewals or modification of any such leases,
mortgages, or deeds of trust which Landlord or any grantee or assignee of Landlord has placed or
may place upon the Premises in the same manner and to the

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same extent as if this Lease had been executed subsequent to the execution, delivery, and recording
of such Lease, mortgage, or deed of trust.

     25.02 Subordination. Self-Operative: Subordination Agreement. Non-disturbance. The
subordination of this Lease to any mortgage or deed of trust now or hereafter placed upon the
Premises shall be automatic and self-operative and no further instrument or evidence of
subordination shall be necessary. Without limiting such automatic and self-operative subordination,
however, Tenant shall, on demand, at any time, execute, acknowledge, and deliver to Landlord or any
grantee or assignee of Landlord any and all instruments that may be necessary or proper to evidence
the subordination of this Lease and all rights hereunder to the lien of such mortgage or deed of
trust. In any and all events, so long as Tenant is not in default under this Lease beyond any
applicable cure period, Tenant’s right of possession shall not be disturbed.

     25.03 Attornment. Tenant covenants and agrees that, upon any mortgage foreclosure or
foreclosure under a deed of trust, it will attorn to any mortgagee, trustee, assignee, or any
purchaser at any foreclosure sale as its Landlord, and this Lease shall continue in full force and
effect as a direct Lease between Tenant herein and such party upon all terms, conditions, and
agreements set forth in this Lease.

     25.04 Attornment to Successor. In the event Landlord or any successor owner of the Premises
shall transfer the Premises, which transfer may be freely effected by Landlord without the consent
or approval of Tenant, Landlord or such successor owner, as the case may be, shall thereupon be
released from all future liabilities and obligations of Landlord under this Lease and all such
future liabilities and obligations shall thereupon automatically be binding upon the new owner, and
Tenant will attorn to any new owner as its Landlord, and this Lease shall continue in full force
and effect as a direct Lease between Tenant herein and such party upon all terms, conditions, and
agreements set forth in this Lease.

ARTICLE XXVI

Landlord’s Access to the Premises

     Landlord, or its agents or authorized representatives, shall have access to the Premises
after reasonable notice at any time during normal business hours for the purposes of examining or
inspecting the condition of same. In the event of any emergency such as, but not limited to, a
fire, flood, or severe windstorm, Landlord shall have free access to the Premises for the purpose
of examining or inspecting damage done to them. Unless Tenant shall have given notice of its
intention to exercise its option to extend the Term of this Lease pursuant to Article II of this
Lease entitled “Term and Extensions,” Landlord shall have the right, within twelve (12) months
prior to expiration of this Lease or any extensions hereof, to show the Premises to prospective
tenants, at reasonable times during normal business hours. Landlord further reserves the right to
show the Premises to prospective purchasers or their representatives any time during the Term of
the Lease, upon reasonable notice to Tenant during normal business hours.

ARTICLE XXVII

Environmental Compliance

     27.01 Definitions. For purposes of this Lease:

     (a) the term “Environmental Laws” shall mean and include the Resource Conservation and
Recovery Act, as amended by the Hazardous and Solid Waste Amendments of 1984, the Comprehensive
Environmental Response, Compensation and Liability Act, the Hazardous Materials Transportation
Act, the Toxic Substances Control Act, the Federal Insecticide, Fungicide and Rodenticide Act and
all applicable state and local environmental laws, ordinances, rules, requirements, regulations
and publications, as any of the foregoing may have been or may be from time to time amended,
supplemented or supplanted and any

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and all other federal, state or local laws, ordinances, rules, requirements, regulations and
publications, now or hereafter existing, relating to the preservation of the environment or the
regulation or control of toxic or hazardous substances or materials; and

     (b) the term “Regulated Substance” shall mean and include any, each and all substances or
materials now or hereafter regulated pursuant to any Environmental Laws, including, but not
limited to, any such substance or material now or hereafter defined as or deemed to be a
“regulated substance,” “pesticide,” “hazardous substance” or “hazardous waste” or included in any
similar or like classification or categorization thereunder.

     27.02 Compliance. Tenant shall:

     (a) not cause or permit any Regulated Substance to be placed, held, located, released,
transported or disposed on, under, at or from the Premises or to otherwise adversely affect the
Premises in violation of any Environmental Laws;

     (b) at its own cost and expense contain at or remove from the Premises, or perform any other
necessary or desirable remedial action regarding, any Regulated Substance in any way affecting the
Premises if, as and when such containment, removal or other remedial action is required under any
Environmental Laws and, whether or not so required, shall perform any containment, removal or
remediation of any kind involving any Regulated Substance in any way affecting the Premises in
compliance with the requirements of all Environmental Laws;

     (c) provide Landlord with written notice (and a copy as may be applicable) of any of the
following within 20 days thereof: (i) Tenant’s obtaining knowledge or notice of any kind of the
presence, or any actual or threatened release, of any Regulated Substance in any way affecting the
Premises; (ii) Tenant’s receipt or submission, or Tenant’s obtaining knowledge or notice of any
kind, of any report, citation, notice or other communication from or to any federal, state or local
governmental or quasi-governmental authority regarding any Regulated Substance in any way affecting
the Premises; or (iii) Tenant’s obtaining knowledge or notice of any kind of the incurrence of any
cost or expense by any federal, state or local governmental or quasi-governmental authority or any
private parly in connection with the assessment, monitoring, containment, removal or remediation of
any kind of any Regulated Substance in any way affecting the Premises, or of the filing or
recording of any lien on the Premises or any portion thereof in connection with any such action or
Regulated Substance in any way affecting the Premises; and

     (d) defend all actions against Landlord and its Mortgagee and pay, protect, indemnify and
save harmless Landlord and its Mortgagee from and against any and all liabilities, losses,
damages, costs, expenses (including, without limitation, reasonable attorneys’ and consultant’s
fees, response and clean-up costs, court costs, and litigation expenses), causes of action, suits,
claims demands or judgments of any nature relating to (i) the presence, disposal, release or
threatened release of any Regulated Substance; (ii) any personal injury (including wrongful death)
or property damage (real or personal) arising out of or relating to any Regulated Substance; or
(iii) any Environmental Laws, Regulated Substance or other environmental matters caused by Tenant,
its agents, servants, employees or contractors. If at the expiration or other termination of this
Lease any response or clean up of a condition involving Regulated Substances is required by any
federal, state or local governmental authority, Tenant shall remain solely responsible for such
requirement and this Lease shall remain in full force and effect pursuant to the terms of Article
XXIII until such response or clean up is completed to the satisfaction of the respective
governmental authority. The indemnity contained in this Article XXVII shall survive the expiration
or earlier termination of this Lease,

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but shall be limited to the acts, omissions or negligence of Tenant, its agents, servants,
employees or contractors.

ARTICLE XXVIII

Late Rent

     Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of
which will be difficult to ascertain. Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage
or trust deed encumbering the Premises. Accordingly, if any installment of Rent or any other sum
due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days
after written notice of non-payment, Tenant shall pay to Landlord a late charge equal to the
greater of 4% of such overdue amount or the late charge, penalty or interest imposed on Landlord
by its Mortgagee as a result of any late payment made to such Mortgagee. The parties hereby agree
that such late charge represents a fair and reasonable estimate of the costs Landlord will incur
by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord
from exercising any of the other rights and remedies granted hereunder.

ARTICLE XXIX

Estoppel Certificates

     Tenant will promptly execute, acknowledge, and deliver to Landlord, upon request, a
certificate of Tenant certifying that this Lease is unmodified and is in full force and effect for,
if modified, that this Lease is in full force and effect, as modified, and stating the date of each
instrument so modifying this Lease); the dates, if any, to which Rent and other charges payable
hereunder have been paid; and, whether, to the knowledge of Tenant, any default exists hereunder
and, if so, the nature and period of existence thereof and what action Landlord is taking or
proposes to take with respect thereto and whether notice thereof has been given to Landlord and
such other and further matters as may reasonably be requested by Landlord and any mortgagee of
Landlord. If such certificate is required to be delivered by a corporation, the same shall be
signed by the President or a Vice President and the Secretary or an Assistant Secretary thereof,
and if such certificate is required to be delivered by a partnership, the same shall be signed by a
general partner thereof. Any certificate required under this Article may be relied upon by a
prospective purchaser, mortgagee, or other transferee of Landlord’s interest under this Lease.

ARTICLE XXX

Reports

     Tenant agrees to furnish to Landlord, within ninety (90) days after the end of each fiscal
year during the term of this Lease, a copy of Tenant’s most recent balance sheet or financial
statement. Tenant shall provide the Landlord annually, by November 1, of each year during the term
of this Lease, a report showing the total number of permanent and part-time employees of the
Tenant working at the Premises as of September 30 of that year and the aggregate total of gross
wages paid to these employees during the twelve month period ending September 30 of that same
year.

ARTICLE XXXI

Provisions of General Application

     (a) The language in all parts of this Lease shall in all cases be construed as a whole and
according to its fair meaning, and not strictly for or against either Landlord or Tenant, and the
construction of this Lease and any of its various provisions shall be unaffected by any argument
or claim, whether or not justified, that it has been prepared, wholly or in substantial part, by
or on behalf of Landlord or Tenant.

-27-

 

     (b) The Article headings in this Lease are for convenience only and are not a part of this
Lease, and do not in any way limit or simplify the terms and provisions of this Lease, nor should
they be used to determine the intent of the parties.

     (c) If any term, covenant, condition or provision of this Lease, or the application thereof to
any person or circumstances, shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby; and it is the
intention of the parties hereto that if any provision of this Lease is capable of two
constructions, one of which would render the provision invalid, and the other which would render
the provision valid, then the provision shall have the meaning which renders it valid; and each
term, covenant, condition and provision of this Lease shall be valid and be enforced to the fullest
extent permitted by law.

     (d) The failure of either party to seek redress for violation of, or to insist upon strict
performance of, any term, covenant, condition or provision contained in this Lease shall not
prevent a similar subsequent act from constituting a default under this Lease. It is further agreed
by and between the parties that no modification, release, discharge or waiver of any provision of
this Lease shall be of any force, effect or value unless in writing and signed by the Landlord and
Tenant or their duly authorized agents.

     (e) This Lease shall be governed and construed in accordance with the laws of the State
wherein the Premises are located.

     (f) This Lease shall inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of Landlord, and the successors and assigns of Tenant.

     (g) The parties will, at any time at the written request of either one, promptly execute
duplicate originals of an instrument, in readable form, which will constitute a short form of
lease, setting forth a description of the Premises, the Term and any other portions hereof, except
the rental provisions (unless required by statute), as either party may request. All costs incurred
in connection with recording the short form of lease shall be paid by Tenant. If a party fails or
refuses to execute and acknowledge a short form of lease within fifteen (15) days after notice of
said request, the requesting party is authorized to, and is hereby appointed attorney-in-fact with
full power and authority to execute and acknowledge said short form of lease on behalf of and in
the name of the other Party.

     (h) Upon the execution of this Lease, Landlord and Tenant agree to only record a memorandum
of the Lease in the office of the Clerk of the County Commission of Brooke County, West Virginia.
The parties recognize that this Lease shall be kept confidential and not disclosed to any third
person without the prior written consent of the other party, unless the Landlord determines that
the Lease is subject to disclosure pursuant to the provisions of the West Virginia Freedom of
Information Act or disclosure is otherwise required by a valid subpoena or order issued by a court
of applicable jurisdiction.

     (i) If, as a result of any breach or default in the performance of any of the provisions of
this Lease, Landlord or Tenant uses the services of an attorney in order to secure compliance with
such provisions or recover damages therefor from the breaching party, and if the non-breaching
party is the prevailing party in any litigation resulting therefrom or settlement associated
therewith, then the non-breaching party shall be entitled to recover from the breaching party any
and all reasonable attorneys fees and expenses incurred by the non-breaching party in connection
with such litigation.

-28-

 

     (j) This instrument contains the entire and only agreement between the parties relating to the
subject matter hereof, and no oral statements or representations or written matter not contained in
this instrument shall have any force or effect. This Lease shall not be amended or modified in any
way except by a writing executed by both parties.

     (k) Time is of the essence of this Lease and the performance of all obligations hereunder.

     (1) The relationship between the parties hereto is solely that of Landlord and Tenant, and
nothing in this Lease shall be construed as creating a partnership or joint venture between the
parties hereto, it being the express intent of Landlord and Tenant that the business of Tenant on
the Premises and elsewhere, and the good will thereof, shall be and remain the sole property of
Tenant.

     (m) Throughout this Lease, wherever the context so requires, the singular shall include the
plural, and the masculine gender shall include the feminine and neuter genders.

     (n) There shall be no merger of this Lease or the leasehold estate created by this Lease with
any other estate or interest in the Premises by reason of the fact of the same person, firm,
corporation, or other entity acquiring or owning or holding, directly or indirectly, this Lease or
the leasehold interest created by this Lease or any interest in this Lease, and any such other
estate or interest in the Premises or any part thereof, and no such merger shall occur unless and
until all corporations, firms, and other entities having an interest (including a security
interest) in this Lease or the leasehold interest created by this Lease and any such other estate
or interest in the Premises or any part thereof, shall join in a written instrument effecting such
merger and shall duly record the same.

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed and
delivered in their respective names as of the date first above written, and Tenant has attached
hereto a certified copy of its corporate resolution evidencing the authority of the person
subscribing below to execute leases such as this Lease on its behalf.

	 	 	 
	LANDLORD:

	 	West Virginia Economic Development Authority
	 
	 	 
	WITNESS:
	 	 
	 
	 	 
	/s/
J.D.B.

	 	/s/ David A. Warner
	 

	 	 
	 

	 	By: David A. Warner
	 

	 	Its: Executive Director
	 
	 	 
	TENANT:

	 	Pennsylvania Fashions, Inc.
	 
	 	 
	WITNESS:
	 	 
	 
	 	 
	/s/ John
Jay Edson

	 	/s/ Dennis Hernreich
	 

	 	 
	 

	 	By: Dennis Hernreich
	 

	 	Its: Senior Vice President &

       Chief Financial Officer

-29-

 

	 	 	 	 	 	 	 
	STATE OF PENNSYLVANIA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS:
	COUNTY OF ALLEGHENY

	 	 	)	 	 	 

          Before me, this 2nd day of July, 1999, the undersigned authority, a Notary Public, personally
appeared Dennis Hernreich, who acknowledged himself to be the Senior Vice President and Chief
Financial Officer of Pennsylvania Fashions, Inc., a Pennsylvania corporation, and that he, being
authorized to do so, executed the foregoing instrument for the purposes therein contained by
signing his name.

          IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	/s/ Margaret A. Harshaw
 	 
	 	Notary Public 	 
	 	 	 
	 

	 	 	 
	My Commission Expires: 2/24/2003

	 	Notarial Seal 

Margaret A. Harshaw, Notary Public

Marshall Twp., Allegheny County

My Commission Expires Feb. 24, 2003

Member, Pennsylvania Association of Notaries
	[SEAL]
	 	 

-30-

 

	 	 	 	 	 	 	 
	STATE OF West Verginia

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS:
	COUNTY OF Kanawha

	 	 	)	 	 	 

          Before me, this 28th day of June, 1999, the undersigned authority, a Notary Public,
personally appeared David A. Warner, who acknowledged himself to be the Executive Director of the
West Virginia Economic Development Authority, a West Virginia public corporation, and that he,
being authorized to do so, executed the foregoing instrument for the purposes therein contained by
signing his name.

          IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	 	 	 
	

	 	/s/ Debra J. Orcutt
	 

	 	 
	 

	 	Notary Public

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EXHIBIT
“A,” REAL PROPERTY DESCRIPTION FOR INITIAL FACILITY

 

 

EXHIBIT “B,” SITE PLAN

 

 

May 28, 1999

Project 98-443

Three Springs Industrial and Business Park

Subdivision No. 4

Lot 1-A-1

ALL that certain tract or parcel of land situated in the City of Weirton, District of Cross Creek,
County of Brooke and State of West Virginia, bounded and described as follows, to-wit;

Beginning at a point on the westerly line of Park Drive and on the property of the West Virginia
Economic Development Authority: thence along the westerly line of Park Drive the following three
courses and distances, to-wit: South 22°12’07” East, 370.38 feet to a point; thence by the arc of a
circular curve deflecting to the right in a southwardly direction having a radius of 421.00 feet,
an arc distance of 238.68’ and a chord bearing and distance of
South 5°57’37” East,
235.50 feet to a point; thence South 10o16’54” West, 149.29 feet to a point on the
westerly line of Park Drive and on the property of the West Virginia Economic Development
Authority; thence departing from the westerly line of Park Drive and along the property of West
Virginia Economic Development Authority the following three courses and distances, to-wit: South
10°16’54” West, 99.14 feet to a point; thence by the arc of a circular curve deflecting to the
right in a southwestwardly direction having a radius of 50.00 feet, an arc distance of 72.54 feet
and a chord bearing and distance of South 51°50’28” West, 66.34 feet to a point; thence North
86°35’58 West. 82.50 feet to a point on the property of Weirton Steel Corporation; thence along
the property of Weirton Steel Corporation the following three courses and distances, to-wit: North
86°35’58” West, 539.50 feet to a point; thence North 22°12’07” West, 555.50 feet to a point; thence
North 67°47’53” East, 377.90 feet to a point on the property of West Virginia Economic Development
Authority; thence along the property of West Virginia Economic Development Authority North
67°47’53” East, 446.10 feet to a point at the place of beginning

CONTAINING 13.03 Acres.

 

 

 

 

EXHIBIT
“C,” REAL PROPERTY DESCRIPTION FOR ADDITIONS

 

 

May 28, 1999

Project 98-443

Three Springs Industrial and Business Park

Subdivision No. 4

Option for Phase II

ALL that certain tract or parcel of land situated in the City of Weirton, District of Cross Creek,
County of Brooke and State of West Virginia, bounded and described as follows, to-wit:

BEGINNING at a point on the westerly line of Park Drive and on the property of West Virginia
Economic Development Authority: thence along the westerly line of Park Drive South 22°12’07” East,
712.72 feet to a point on the westerly line of Park Drive and the property of West Virginia
Economic Development Authority; thence departing from the westerly line of Park Drive and along the
property of West Virginia Economic Development Authority South 67°47’53” West, 446.10 feet to a
point on the property of Weircon Steel Corporation; thence along the property of Weirton Steel
Corporation the following two courses and distances, to-wit: South 67°47’53” West, 377.90 feet to a
point; thence North 22°12’07” West, 389.85 feet to a point on the property of West Virginia
Economic Development Authority; thence along the property of West Virginia Economic Development
Authority the following two courses and distances, to-wit; North 22°12’07” West, 322.87 feet to a
point; thence North 67°47’53” East, 824.00 feet to a point at the place of beginning

CONTAINING 13.48 Acres.

 

 

EXHIBIT “D,” THREE SPRINGS INDUSTRIAL AND BUSINESS PARK

DECLARATIONS OF COVENANTS, CONDITIONS AND REGULATIONS

 

 

EXHIBIT “D,” THREE SPRINGS INDUSTRIAL AND BUSINESS PARK

DECLARATIONS OF COVENANTS, CONDITIONS AND REGULATIONS

 

 

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

WEIRTON STEEL CORPORATION

THREE SPRINGS INDUSTRIAL AND BUSINESS PARK — PLAN NO. 1

BROOKE COUNTY, WEST VIRGINIA

	 	 	 
	ARTICLE I:
	 	PROPERTY SUBJECT TO THIS DECLARATION
	 
	 	 
	ARTICLE II:
	 	GENERAL PROVISIONS
	 
	 	 
	ARTICLE III:
	 	CONSTRUCTION IMPROVEMENTS
	 
	 	 
	ARTICLE IV:
	 	REGULATION OF OPERATIONS AND USES
	 
	 	 
	ARTICLE V:
	 	DEVELOPMENT STANDARDS
	 
	 	 
	ARTICLE VI.
	 	RIGHTS, DUTIES AND RESPONSIBILITIES
	 
	 	 
	ARTICLE VII:
	 	VARIANCES AND ADJUSTMENTS
	 
	 	 
	ARTICLE VIII:
	 	PROVISIONS FOR MODIFICATION, AMENDMENT OR DELETION

ARTICLE I: PROPERTY SUBJECT TO THIS DECLARATION

THIS
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS,
(hereinafter “Declaration”), made and
entered into this 20th day of March, 1997, by and between WEIRTON STEEL
CORPORATION, (hereinafter called “WSC”), and ALL PURCHASERS, THEIR RESPECTIVE HEIRS, EXECUTORS,
ADMINISTRATORS, SUCCESSORS AND ASSIGNS, of lots in the Three Springs Industrial and Business Park -
Plan No. 1, situate in Brooke County, West Virginia;

WHEREAS,
WSC is the owner of a plan of lots called “THREE SPRINGS INDUSTRIAL AND BUSINESS PARK -
PLAN NO. 1” situate in Brooke County, West Virginia, (hereinafter called “Plan No. 1”), which plan
is recorded in the Office of the County Clerk in and for the County of Brooke, State of West
Virginia, Plat Book No. 3 at pages 55 and 55A;

WHEREAS, WSC intends to convey Plan No. 1 to the WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY,
(“WVEDA”); and

WHEREAS, Plan No. 1 is to be developed as a planned business and industrial park and WVEDA
intends to lease, sell and convey lots in Plan No. 1, and it is WSC’s desire and intention to
subject the real property in Plan No. 1 to certain covenants,

 

 

conditions and restrictions herein contained as such covenants will bind and benefit each and all
of the tenants or lessees and purchasers of such lots, their respective heirs, executors,
administrators, successors and assigns, and that all lots in Plan No. 1 shall be held, used,
leased, sold and conveyed subject to the covenants set forth in this Declaration to enhance and
protect the value, desirability, and attractiveness of all such lots for the mutual benefit of all
lot owners or lot lessees.

NOW THEREFORE, WSC declares that all lots in said Plan No. 1 will be leased or sold subject to the
covenants herein contained and all tenants or lessees and purchasers of lots in said Plan No. 1 for
themselves, their heirs, executors, administrators, successors and assigns, by the lease or
purchase of said lots, agree to be bound by the restrictive covenants herein contained which shall
be recorded in the Office of the County Clerk in and for the County of Brooke, State of West
Virginia.

ARTICLE II: GENERAL PROVISIONS

     2.1 General Declaration. Plan No. 1 is subject to the conditions, covenants,
restrictions, reservations, and easements herein contained to insure proper use and appropriate
development and improvement of each building site; to protect the owners of building sites against
such improper use of surrounding building sites as will depreciate the value of their property; to
guard against the erection of structures built of improper or unsuitable materials; to insure
adequate and reasonable development of all building sites; to encourage the erection of attractive
improvements with appropriate locations on building sites; to prevent haphazard and inharmonious
improvement of building sites; to secure and maintain proper setbacks from streets and adequate
free spaces between structures, and for the landscaping, planting, and maintenance of open spaces;
to provide adequately for off-street parking and for loading and storage of vehicles; to control
through performance standards, the undesirable aspects of industrial operations; and in general, to
provide for superior development of Plan No. 1; to insure that the use of building sites shall not
affect adversely the interest of WSC and WVEDA or purchasers or lessees of building sites in Plan
No. 1; nor the health and safety of employees or workers therein; and will not be detrimental to
the use or development of adjacent properties of the general neighborhood. In the event

2

 

the provisions of this Declaration conflict with local, state or federal requirements, the more
stringent requirements in each case shall apply.

     2.2 Duration. The covenants herein contained in this
Declaration shall run with the subject property for all purposes
and shall bind all parties and persons claiming under them until
December 31, 2020, at which time said covenants shall be
automatically extended for successive periods of ten (10) years,
unless by a vote of the a majority of the then owners of said
lots, it is agreed to change or terminate said covenants in
whole, or in part, provided that WSC gives its written consent to
any such change or termination which consent may be arbitrarily
withheld by WSC.

     2.3 Addition of Other Realty. WSC at any time during the
pendency of this Declaration may add all or a portion of any real
property adjacent to Plan No. 1 now, or hereafter, owned by the
WSC to the subject property, upon recording of a notice of
addition of real property containing at least the provisions set
forth in Section 2.4, the provisions of this Declaration
specified in said notice shall apply to such added real property
in the same manner as if it were originally covered by this
Declaration. Thereafter, to the extent that this Declaration is
made applicable thereto, the rights, powers, and responsibilities
of WSC and the owners and occupants of lots within such added
real property shall be the same as in the case of the real
property described in Article 1.

     2.4 Notice of Addition to Land. The notice of addition of
real property referred to in Section 2.3 shall contain at least the following provisions:

	 	a.	 	A reference to this Declaration stating the
date of recording and the books of records of
Brooke County, West Virginia where this
Declaration is recorded;
	 
	 	b.	 	A statement that the provisions of this
Declaration, or some specified part thereof,
shall apply to such added real property;
	 
	 	c.	 	A legal description of such added real property; and

3

 

	 	d.	 	Such other or different covenants,
conditions, and restrictions as WSC shall, in its discretion, specify
to regulate and control the use, occupancy, and improvement of such
added real property.

     2.5 Respective Enforcement Rights. Enforcement rights will be held only by the WSC
and WVEDA. If the parties hereto, or any of them, shall violate or attempt to violate, any of the
covenants herein, WSC or WVEDA or both shall have the right to proceed at law or in equity to
compel compliance with the terms hereof or to prevent the violation or breach of any such terms. In
addition to the foregoing right, WSC or WVEDA or both shall have the right, whenever there shall
have been built on any lot any structure which is in violation of these restrictions, to enter upon
the property where such violation of these covenants, conditions, reservations and restrictions
exists and summarily abate or remove the same at the expense of the owner, and any such entry and
abatement or removal shall not be deemed a trespass. WSC and/or WVEDA may assign their enforcement
rights to an entity who may be engaged to manage the Three Springs Industrial and Business Park or
an association of lot owners of Plan No. 1.

Should WSC or WVEDA employ counsel to enforce any of the foregoing covenants, conditions,
reservations or restrictions or re-entry by reason of such breach, all costs incurred in such
enforcement, including a reasonable fee for counsel, shall be paid by the owner of such lot or lots
and WSC and WVEDA shall have a lien upon such lot or lots to secure payment of all such accounts.

Should the owner fail, neglect, or refuse to satisfy and discharge any lien arising hereunder
within thirty (30) days, WSC or WVEDA shall have the right to interest on such liens at the rate of
ten (10) percent per annum, and shall be entitled to receive all costs of collection, including a
reasonable attorney’s fee.

The breach of any of the foregoing covenants, conditions, reservations or restrictions contained
herein, shall not defeat

4

 

or render invalid the lien of any mortgage made in good faith for value as to any lot or lots or
portions of lots in Plan No. 1., but these covenants, conditions, reservations and restrictions
shall be binding upon and effective against any such mortgagee or owner thereof whose title thereto
or whose grantor’s title is or was acquired by foreclosure, or otherwise.

No delay or omission on the part of either WSC or WVEDA in exercising any rights, power, or remedy
herein provided, in the event of any breach of the covenants, conditions, reservations or
restrictions herein contained, shall be construed as a waiver thereof or acquiescence therein, and
no right of action shall accrue nor shall any action be brought or maintained by anyone whatsoever
against WSC or WVEDA for or on account of its failure to bring any action on account of any breach
of these covenants, conditions, reservations or restrictions, or for imposing restrictions herein
which may be unenforceable by WSC or WVEDA.

Each and every one of the covenants, restrictions, reservations, and servitudes contained herein
shall be considered to be an independent and separate covenant and agreement.

     2.6 Effect of Invalidation.

     In the event any one or more of the foregoing covenants, conditions, reservations or
restrictions shall be declared for any reason, by a court of competent jurisdiction, to be null and
void, such judgment or decree shall not in any manner whatsoever affect, modify, change, abrogate,
or nullify any of the covenants, conditions, reservations and restrictions not so declared to be
void, but all of the remaining covenants, conditions, reservations and restrictions not so
expressly held to be void shall continue unimpaired and in full force and effect.

ARTICLE III — CONSTRUCTION OF IMPROVEMENTS

     3.1 Approval of Plans Required. To assure architectural and landscaping integrity, no
construction, grading, regrading, addition or alteration (except to the interior of a building),
or change in use is permitted without the prior submission of plans to WSC and WVEDA and the
written approval of WSC and WVEDA as detailed in this Article.

5

 

Prior approval by WSC and WVEDA will be required of a user’s development plans and any contemplated
building alterations or additions. Development plans shall be submitted over the authorized
signature of the owner or occupant, or both of the lot or the authorized agent thereof. Submitted
development plans shall be in such form and shall contain such information as may be required by
the WSC and WVEDA but shall contain the following information at a minimum:

	 	a.	 	A site development and grading plan of the lot
showing the nature, kind, shape, composition and
location of all main and accessory structures with
respect to the particular lot and with respect to
the structures on adjoining lots. Front, rear and
side setback lines must be designated on the site
plan.
	 
	 	b.	 	A building elevation plan showing the height and
bulk of structures; exterior building materials,
colors and textures to be used, and the height and
bulk of any roof-mounted mechanical equipment.
Any changes in approved plans must be similarly
submitted to and approved by WSC and WVEDA.
	 
	 	c.	 	A traffic circulation and building service plan
showing the location of vehicular access onto the
site, the number and location of all parking
spaces and driveways on the lot, and all truck
loading spaces.
	 
	 	d.	 	A utility plan showing on-site utility alignments
and storm drainage systems including any storm
water detention or retention systems.
	 
	 	e.	 	A landscaping plan for the particular lot showing
the location and nature of all landscaping, as
well as provisions for other open space; paving,
fences and walls planned for, the site; and the
location of refuse or storage areas.
	 
	 	f.	 	A plan for the location of signs indicating the
contemplated display of signs, including copy,
type, color and materials of letters and method of

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	 	 	 	illumination.
	 
	 	g.	 	A lighting plan indicating the method(s) of exterior lighting.
	 
	 	h.	 	An architectural rendering of the proposed building.

These plans may be combined together to simplify the applicant’s
submittal as long as the drawings are acceptable to WSC and
WVEDA. The applicant shall submit seven (7) copies of all
development plans.

     3.2 Basis for Approval. In reviewing plans submitted, WSC and WVEDA will be concerned
with the safety and convenience of traffic movement both within and outside the lot, its
relationship to access streets, as well as to the harmonious and beneficial relationship of
structures and uses on the lot with other lots in Plan No. 1. Approval will be based, among other
things, upon compliance with the Development Standards incorporated in Article V including: the
adequacy of lot dimensions; adequacy of structural design, conformity and harmony of external
design with neighboring structures; effect of location and use of proposed improvements upon
neighboring lots; proper facing of main elevation with respect to nearby streets; the adequacy of
screening for mechanical, air-conditioning, or other roof-top installations; and conformity of the
plans to the purpose and general plan and intent of this Declaration.

Except as otherwise provided in this Declaration, WSC and WVEDA shall have the right to disapprove
any plans submitted hereunder on any reasonable grounds including, but not limited to the
following:

	 	a.	 	Failure to comply with any of the restrictions set
forth in this Declaration;
	 
	 	b.	 	Failure to include information in such plans as
may have been reasonably requested by WSC and
WVEDA;
	 
	 	c.	 	Objection to the exterior design, the appearance
of materials, or materials employed in any
proposed structure;

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	 	d.	 	Objection on the ground of incompatibility of any
proposed structure or use with existing structures
or uses upon other lots, or other property in the
vicinity of the subject property;
	 
	 	e.	 	Objection to the location of any proposed
structure with reference to other lots, or other
property in the vicinity;
	 
	 	f.	 	Objection to the grading or landscaping plan for
the lot;
	 
	 	g.	 	Objection to the color scheme, finish,
proportions, styles of architecture, height, bulk, or appropriateness of any structure;
	 
	 	h.	 	Objection to the number or size of parking spaces, or to the design of
the parking area;
	 
	 	i.	 	Any other matter that, in the judgment of WSC or WVEDA would
render the proposed improvements or use inharmonious with the general plan
for improvement of the subject property or with improvements located upon
other lots or other property in the vicinity.

     3.3 Approval. WSC and WVEDA may approve plans as
submitted, or as altered or amended, or may grant approval
subject to specific conditions. Upon approval or conditional
approval by WSC and WVEDA of any plans submitted, one copy of the
approved plans bearing a statement of WSC’s and WVEDA’s approval
together with any conditions, shall be retained permanently by
WSC, WVEDA and by the applicant.

     3.4 Construction Without Approval. If any improvement
shall be erected, placed, or maintained upon any lot, or any new
use commenced upon any lot, other than in accordance with the
approval by WSC and WVEDA pursuant to the provisions of this
Article III, such alteration, erection, placement, maintenance,
or use shall be deemed to have been undertaken in violation of
this Declaration, and upon written notice from WSC or WVEDA, any
such improvement so altered, erected, placed, maintained, or used
upon any lot in violation of this Declaration shall be removed or

8

 

altered so as to conform to this Declaration, and any such use shall cease or be altered so as to
conform to this Declaration. Should such removal or alteration or cessation or amendment of use not
be accomplished within thirty (30) days after receipt of such notice, then the party in breach of
this Declaration shall be subject to the enforcement procedures set forth in Article II.

     3.5 Liability. WSC and WVEDA shall not be liable for any damage, loss, or prejudice
suffered or claimed by any person on account of:

	 	a.	 	The approval, conditional approval or disapproval
of any plans, drawings, and specifications,
whether or not in any way defective;
	 
	 	b.	 	The construction of any improvement, or
performance of any work, whether or not pursuant
to approved plans, drawings, and specifications;
or,
	 
	 	c.	 	The development of any lot within the Three
Springs Industrial and Business Park.

ARTICLE IV — REGULATION OF OPERATIONS AND USES

     4.1 Permitted Uses. Plan No. 1 shall be utilized for
general offices, research and development laboratories, light
manufacturing and production, assembly, distribution or
warehousing and related service and support facilities and for no
other purpose whatsoever. Personal and business services,
ancillary to the business and industrial uses, shall also be
permitted. Utilization of the property for distribution
activities which include over-the-counter pick-up or sales to the
general public is prohibited unless an application therefore,
setting forth the particular type of pick up or sales
contemplated, the anticipated volumes and the location of the
pick-up center or sales outlet on the property, is specifically
approved in writing by WSC and WVEDA.

     4.2 Prohibited Uses. Uses which create objectionable
attributes including, but not limited to noise, odor, vibration,
fumes, flare, heat, hazard, radiation or waste problems are

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prohibited. Any use which is prohibited by federal, state or local law is prohibited.

     4.3 Reservation of Rights. WSC and WVEDA and their respective successors or assigns
reserve the right in their sole discretion to determine which specific uses are permitted and/or
prohibited.

ARTICLE V — DEVELOPMENT STANDARDS

     5.1 Lot Coverage by Buildings. The erection of one or more
detached buildings on any lot shall result in the coverage of no more than to thirty three percent
(33%) of the lot ground area upon initial development. The erection of additions to existing
buildings or the erection of an additional building, shall result in the coverage of no more than
fifty percent (50%) of the lot ground area.

The area of a lot which may be covered by buildings is limited to assure the provision of adequate
surrounding space within the lot ground area for parking, service, and to maintain an attractively
landscaped park-like setting in the Three Springs Industrial and Business Park.

     5.2
Floor Area Ratio (FAR). Total floor area ratio
(“FAR”)
shall not exceed 0.70. Total FAR is defined as the ratio of
total building gross floor area, excluding mezzanines used
exclusively for material storage, to the total lot area, eg. if
the total lot area is 10,000 square feet, total building gross
floor area, not counting mezzanines used exclusively for material
storage, shall not exceed 7000 square feet.

     5.3 Building Height Limitations. Building height limits
shall be described as occurring within a 45° angle of bulk plane
or a maximum of sixty (60) feet above finished grade, whichever
is more restrictive. Bulk plane shall be defined as an imaginary
inclined plane rising over a lot, drawn at a 45° angle from the
vertical, the bottom side of which is coincidental with the lot
line(s) of the lot, and which, together with a maximum height of
sixty (60) feet above finished grade, delineates the maximum bulk
of any improvement which may be constructed on the lot.
Additional height may be permitted if specifically approved in
writing by WSC and WVEDA. The height of any roof over any

10

 

occupied floor shall not rise above this plane except that in the cases of buildings with special
requirements, additional height may be permitted by WSC and WVEDA. Such special requirements shall
not include habitable space.

     5.4 Construction Materials. To establish and maintain the
character and property values for all developed lots within Plan
No. 1, quality materials must be utilized in the construction of
all buildings. Building materials will be judged and approved by
WSC and WVEDA on a case-by-case basis. Factors to be considered
by WSC and WVEDA include: the overall design of the building(s); its compatibility with existing
and previously approved structures including scale, color, and texture of the building in harmony
with the design of other existing or approved structures; and, the overall objectives of quality
development described elsewhere in these covenants. Plans that provide for metal-clad buildings
will be approved only on the condition that such buildings are constructed so as not to have the
appearance of a pre-engineered metal building, are designed by an architect, and are specially
approved in writing by WSC and WVEDA.

     5.5 Temporary Buildings. No temporary buildings are
permitted except those associated with construction, and only
during the construction period.

     5.6 Building Setbacks (Yard Requirements) and Landscaping Buffer Strip. In order to maintain the desired physical
character of Three Springs Industrial and Busines Park, the
placement of buildings must conform to the established minimum
front, side and rear yard requirements in order to assure an
aesthetically pleasing streetscape and to provide sufficient
light and air for all buildings. The following front, side and
rear yard requirements apply to any lot to be utilized for the
construction of one or more detached buildings. The minimum yard
requirements established below must be satisfied by measuring the
distance from the exterior of the building wall or any building
projection (whichever is closer to the property line) and the
property line.

	 	a.	 	Minimum Front Setback from Streets: With no exceptions, a building front setback line will be established (40) forty
feet from and parallel to any street right-of-way line. The facade of any

11

 

	 	 	 	building, including integral covered porch or walkway, which faces the
right-of-way may be built no closer than this building setback line. Only
exposed walks, drives, parking areas or landscaping will be permitted in the
area between the right-of-way line and the front building setback line.
	 
	 	b.	 	Side Yards: A side yard of at least twenty-five(25) feet must be
provided from the building to
the side property line. When the side yard abuts a street, a side yard of at
least forty (40) feet must be provided from the building to the street
right-of-way. Driveways located within side yard setbacks may be located no closer
than ten (10) feet from the property line.
	 
	 	c.	 	Rear Yards: A rear yard of at least twenty-five(25) feet must be
provided between the building and the rear property line.
	 
	 	d.	 	Landscaped Buffer Strip: A landscaped buffer strip must be provided
around the perimeter of the lot(s) under one ownership. Measured from
the property line, the landscaped buffer strip must be fifteen (15) feet wide in
the front yard, ten (10)
feet wide at each side yard and ten (10) feet wide in the rear yard. In
addition, a landscaped strip ten (10) feet wide must be provided around
the perimeter of the building(s). In addition to the specified general
landscaping requirements defined in Section 5.6, within designated landscaped
buffer strip areas, no more than fifteen percent
(15%) of the area may be covered with a non-vegetative treatment or decorative
mulch, and no less than twenty-five percent (25%) of the area may be covered
with shade and ornamental trees, specimen and flowering trees and shrubs,
hedges and flower beds.

     5.7 Landscaping. The total ground area of the lot(s) not covered by buildings,
parking areas, roadways, walkways, and service areas is to be landscaped with suitable cover
material

12

 

and maintained in a neat and attractive condition at all times. Suitable landscape treatment may
include the use of lawns, ground covers, shade and ornamental trees, specimen and flowering trees
and shrubs, hedges, decorative mulches, terraces, fountains, and pools. No more than fifteen
percent (15%) of the landscaped area may be covered with a non-vegetative treatment or decorative
mulch. Landscaping shall be completed within one year after substantial completion of
construction.

     5.8 Off-Street Parking and Loading. No parking of any
vehicle shall be permitted upon any street or roadway within the
Three Springs Industrial and Busines Park. It is the responsibility of the owners of lots in
Plan No. 1 to provide adequate off-street parking for their employees, tenants, subtenants and
visitors on property under their ownership.

	 	a.	 	Schedule of Off-Street Parking Requirements:
Parking areas must be provided in compliance with the following minimum
requirements. If parking requirements increase as a result of a change in the
use of a lot, additional off-street parking shall be provided so as to satisfy
the federal, state and local requirements.

	 	1.	 	Light Industrial/Manufacturing- Three spaces
per each four (4) employees on the largest
eight hour shift plus one (1) space for each
company vehicle to be parked or stored
outside.
	 
	 	2.	 	Business/Professional- one (1) space for
every three hundred (300) square feet gross
floor area.
	 
	 	3.	 	General Business- One (1) space for each two
hundred (200) square feet of gross floor area.
	 
	 	4.	 	Other Uses — The space provided for parking
must satisfy generally accepted parking
guidelines for that use and be approved by
WSC and WVEDA in order to insure compliance with federal, state and local
guidelines.

13

 

	 	5.	 	Truck Parking — One (1) off-street parking
space shall be provided for each company-
owned or operated truck, and shall be of such
dimension to permit the accommodation of the
entire vehicle without encroachment on any
aisle, passageway or driveway.
	 
	 	6.	 	Handicapped Parking Spaces- one (1) handicapped
parking space shall be provided for each twenty-
five (25) parking spaces provided for the first
one hundred (100) parking spaces, one (1)
handicapped parking space shall be provided for
each fifty (50) additional parking spaces for the
next one hundred (100) parking spaces, and one (1)
handicapped parking space shall be provided for
each one hundred (100) additional parking spaces
for the next three hundred (300) parking spaces.
Any parking spaces provided beyond five hundred
(500) must provide such number of handicapped parking spaces as will comply with
the requirements of the Americans with Disabilities Act.

	 	b.	 	Requirements for Parking Areas: Required off-
street parking shall be provided on the lot or on
a contiguous lot. Parking facilities may be
provided within required side or rear yard areas,
but in no case shall such facilities be permitted
to encroach on required landscaped buffer strips
as defined in Section 5.6(d). Front parking is
permitted, but limited to executive or visitor
parking.
	 
	 	c.	 	Surface Treatments: All areas used for driveway,
loading, service and parking will be surfaced with
an approved, all-weather, dust-free pavement. All
paved areas shall be appropriately drained so that
storm water will not create erosion on the lot or
drain onto adjacent lots. No site surface storm
water runoff may be drained onto the public street
surface. Asphalt paving shall be permitted for
roadways, parking areas and loading areas; but
shall not be permitted for any pedestrian areas or

14

 

	 	 	 	walkways which must be constructed with concrete.
	 
	 	d.	 	Design Standards: Parking spaces shall measure at
least nine (9) feet by twenty (20) feet or not
less than one hundred eighty (180) square feet,
exclusive of access drives or aisles with the
exception of handicapped spaces which shall
measure nine (9) feet wide with a five (5) feet
wide striped access aisle by twenty (20) feet.
Each parking space provided shall be designated by
durable white or yellow paint in striped lines painted upon the paved surface measuring
a minimum of four (4) inches wide and extending the length of the parking space.
Striping must be maintained to keep parking lot designations identifiable.
	 
	 	 	 	All off-street parking areas with more than twenty (20) required parking spaces
shall be landscaped with a minimum of one tree, two and one-half (2-1/2) inches DBH
(diameter at breast height), for every ten (10) parking spaces. These trees shall
be placed in such a fashion as to provide shade and screening of the parking area.
No more than twenty (20) parking spaces will be located in a row without the
provision of a nine (9) foot by eighteen (18) foot landscaped island.
	 
	 	 	 	Parking area driveways shall be designed according to the following
requirements for vehicular access to a street:

	 	 	 
	Type of Drive Way	 	Minimum Width in Feet
	Two directions
	 	24 (35 maximum)
	One-way
	 	12 (17 maximum)

	 	e.	 	Truck Loading: Adequate shipping and loading
facilities will be located on those sides of buildings
which do not front on streets or the primary entrance
facades of adjacent buildings. Loading areas shall be
screened from lateral view by a structural wall of
similar or complementary materials as the building or a
landscaped screen measuring a minimum of ten (10) feet

15

 

	 	 	 	wide and six (6) feet high having a double row of staggered evergreens or similar
screen planting materials. The loading space will be not less than twelve (12) feet
wide, and of sufficient length to insure that no vehicle, during loading or
unloading, will extend over any property line, sidewalk, or parking lot circulation
lane. All truck maneuvering must take place on site. Access to each loading space
shall be located with appropriate means of vehicular access to a street in a manner
that will least interfere with traffic. Any space allocated as a loading space or
access drive shall not be used for the storage of goods or inoperable vehicles or be
included as part of the space necessary to satisfy the off-street parking area
requirements. Truck loading and unloading facilities shall comply with federal,
state and local requirements if any.

     5.9 Storage Areas. Outdoor storage of materials and
equipment will be permitted only in areas which do not front on
streets, and only if enclosed or screened by a wall, planting or
other suitable barrier, providing year-round visual screening.
Tanks for the above-ground storage of liquids or gases will be
permitted to the rear of the building only and must be screened
from view by an approved architecturally treated barrier
constructed with approved materials.

     5.10 Sign Standards. Signage will be strictly regulated
to facilitate the easy identification of the business or product
of the owner or occupant, to maximize visual quality, and to
promote an image consistent with the general purposes of
conditions stated in this Declaration.

All building identification signs must be approved by WSC and WVEDA. All signs must conform to
sign criteria of Three Springs Industrial and Business Park as amended from time to time.
Billboards or similar advertising signs are not permitted except for temporary signs advertising a
lot for sale or lease. These temporary signs used for advertising a lot for sale or lease may not
exceed twenty-four (24) square feet in area.

     5.11 Mechanical or Other Equipment. All mechanical
equipment including air handling units, condensers, compressors,

16

 

ventilators, chimneys, stacks, ductwork, vents and conductors erected, used and installed on the
property, if visible outside of any building, must be screened from view in a manner approved by
WSC and WVEDA. Roof-mounted mechanical equipment which projects vertically more than eighteen (18)
inches above the roof or roof parapet when viewed from street level, is to be screened by an
enclosure, which is designed to conform with the building. No mechanical equipment is to be mounted
on the wall surface of a building.

Vents, louvers, flashings and framed openings in the wall surface are to be painted consistent
with the color scheme of the building.

No tower, dish or antenna for the transmission or the reception of any signals including but not
limited to electro-magnetic or laser radiation shall be erected, used or maintained on the lot, if
visible outside of any building, whether attached to an improvement or self-standing, without prior
written approval of WSC and WVEDA.

     5.12 Waste Disposal and Storage. Adequate space for refuse containers and the
required loading spaces must be provided as part of the site development. All outdoor waste
storage and loading areas and associated screening must be indicated on the final site plan and
landscape plan submitted for the approval of WSC and WVEDA.

	 	a.	 	All refuse, if stored outside the building, will
not be allowed to accumulate, must be disposed of
on a regular basis and must be kept in closed,
fire resistant, sanitary containers especially
made for refuse storage. Such containers must be
totally enclosed and screened from view from the
street and from adjoining properties. Refuse
containers, in and of themselves, will not be
considered adequate screening devices. Refuse
containers shall not be stored in front of
building (s) .
	 
	 	b.	 	No burial of waste material will be permitted on
the project site.

17

 

	 	c.	 	No lagoons or open vessels for liquid waste
storage are permitted.
	 
	 	d.	 	Radioactive waste storage outside of a building is
not permitted. Open burning of refuse or waste is
prohibited.
	 
	 	e.	 	Employee picnic or recreational areas, if any,
must be provided with adequate refuse containers
and emptied regularly.

     5.13 Fences and Walls. Erection of security fences of
any type around the perimeter of a property will be prohibited.
Limited utility fencing to enclose hazardous, dangerous or secure
areas may be approved provided they are designed to be in harmony
with the surroundings, using landscaping or other suitable
screening devices which utilize an approved architecturally
treated barrier constructed with approved materials.
Architecturally treated barriers and materials used shall be
approved by WSC and WVEDA. Architecturally compatible walls,
proposed as a design device to give architectural continuity to
the area, may be used with the approval of WSC and WVEDA. Walls
must be made of high quality materials compatible with the
building exterior walls.

     5.14  Exterior Lighting. In order to minimize the trespass
of light onto adjacent streets and properties, only lighting
fixtures utilizing shielded or screened lamps and designed to
control glare by having a light cutoff feature shall be used for
exterior lighting. An overall site lighting plan indicating the
placement of lights, type of fixtures and pole heights must be
submitted for approval as hereinbefore specified. Wiring for
exterior lighting fixtures shall be installed underground.
Lighting shall be compatible and harmonious throughout the site
and shall be in keeping with the design and function of the
building. Flood lighting is not permitted as a source of general
area illumination.

     5.15  Site Utility Service. All on-site utility lines are
to be placed underground. The primary or secondary power service
and telephone service to the building should be placed
underground from the utility company’s facilities in the street
or adjacent right of way. Ground-mounted power transformers

18

 

shall be located only in the side or rear yards and must be screened from view with appropriate
vegetative cover. Natural or manufactured gas, including but not limited to, (propane, nitrogen,
etc.) piping is to be located underground. Gas metering equipment should not be located in the
front yard and should be screened from view where allowed.

     5.16 Maintenance of Buildings and Grounds. Building
exteriors, grounds, pavements, improvements and appurtenances
will be kept in a safe, clean, neat, wholesome and well-repaired
condition. Property owners, lessees or building managers shall
comply in all respects with governmental statutes, ordinances and
regulations, health, police and fire requirements. Trash, debris
or used materials are not permitted to accumulate on the
property. Lawn and landscaping areas are to be kept cut and
trimmed and free of obnoxious weeds and deleterious growth.

     5.17  Mineral Reservations. Mineral, coal, oil and gas
rights will be restricted to avoid the possibility of undermining
structures or of unsightly exploitation of underground resources.
No derrick or other structure designed for use in boring for oil
or gas shall be erected, placed or permitted upon any part of
such premises, nor shall any oil, natural gas, petroleum,
asphaltum, or hydrocarbon projects or minerals of any kind be
produced or extracted therefrom.

     5.18 Nuisances. No animals, including but not limited
to, horses, cattle, swine, goats, poultry, or fowl shall be kept
on any lot. No weeds, underbrush, or other unsightly growths
shall be permitted to grow or remain upon the lots, and no refuse
pile or unsightly objects shall be allowed to be placed or
suffered to remain anywhere thereon. No lot shall be used in
whole or in part for the storage of any property or thing that
will cause such lot to appear in an unclean or untidy condition
or that will be obnoxious to the eye; nor shall any substance,
thing, or material be kept upon any lot that will emit foul or
obnoxious odors, or that will cause any noise that will or might
disturb the peace, quiet, comfort, or serenity of the occupants
of surrounding property. In the event that any owner of any lot
in Plan No. 1 shall fail or refuse to keep such lot free from
weeds, underbrush, or refuse piles or other unsightly growth or
objects, then WSC or its assignee and/or WVEDA or its assignee
may enter upon such lands and remove the same at the expense of

19

 

the owner, which such entry shall not be deemed a trespass, and in the event of such a removal a
lien shall arise and be created in favor of WSC and WVEDA and against such lot for the full amount
chargeable to such lot, and such amount shall be due and payable within thirty (30) days after
demand is made therefor.

     5.19 Storm Water Detention. Storm water management is to be provided for each
developed site. Post developed peak runoff shall be reduced to predevelopment peak rates for 2,
10, and 25-year storm events of 24-hour duration. Site generated storm
water runoff shall be determined with “Soil Conservation Service”
methodology using average 24-hour precipitation values contained in Appendix B of the then current
West Virginia Erosion and Sediment Control Handbook for Developing Areas. Maintenance of storm
water management facilities shall be the responsibility of the property owner. In the event a
facility is not adequately maintained, WSC or its assignee and/or WVEDA or its assignee shall have
the right to maintain said facility at the expense of the owner or occupant. WSC and WVEDA shall
have a lien upon such lot or lots to secure payment of all such accounts.

ARTICLE
VI RIGHTS, DUTIES AND RESPONSIBILITIES

Once all
lots within Plan No. 1 have either been sold or leased, WVEDA shall no longer have any duties or responsibilities under this Declaration.

ARTICLE VII: VARIANCES AND ADJUSTMENTS

In order to protect and enhance the continuing development of the Three Springs Industrial and
Business Park, enforcement rights will be held only by WSC and WVEDA, as defined in Article II.
Requests for variances or adjustments to these restrictive covenants including, but not limited
to, the permitted uses set forth in section 4.1 and the prohibited uses set forth in section 4.2
will be considered by WSC and WVEDA on a case-by-case basis and granted by WSC and WVEDA at their
sole discretion. Approval of any variance or adjustment shall not be deemed to change, or
generally waive, the covenants or restrictions herein contained, or to serve as precedent for any
proposed future variances or adjustments which may be requested.

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ARTICLE
VIII; PROVISIONS FOR MODIFICATION, AMENDMENT OR DELETION

These restrictive covenants may be modified, amended, or deleted at any time by WSC and WVEDA for
the purpose of further insuring the development of Plan No. 1 as an area of high standards. Such
modification, amendment, or deletion shall be binding upon all future purchasers, their respective
heirs, executors, administrators, successors and assigns; provided, however, that each such
modification, amendment or deletion must be consented to in writing by the then existing lot
owners, their successors or assigns which are determined by WSC and WVEDA to be directly,
pecuniarily and adversely affected by the proposed modification, amendment or deletion.

21

 

     IN WITNESS WHEREOF, WEIRTON STEEL CORPORATION has caused this instrument to be executed
by its President and Chief Executive Officer, duly attested by its Secretary and Vice
President of Law, the day and year first above written.

	 	 	 	 	 	 	 
	 	 	 	 	WEIRTON STEEL CORPORATION
	 
	 	 	 	 	 	 
	By:
	 	[authorized signatory]	 	By:	 	[authorized signatory]
	 
	 	 	 	 	 	 
	Its
	 	Secretary and Vice President
of Law	 	Its	 	President and Chief Executive Officer

	 	 	 
	STATE OF WEST VIRGINIA 
	 	)
	 
	 	)      SS:
	COUNTY OF BROOKE
	 	)

On this,
the 20th day of March, 1997, before me, the undersigned
Notary Public, personally appeared Richard K. Riederer, who acknowledged himself to be the
President and Chief Executive Officer of Weirton Steel Corporation a Delaware corporation, and that
he, as such President and Chief Executive Officer and authorized to do so, executed the foregoing
instrument for the purposes therein contained by signing the name of the Weirton Steel Corporation,
by himself as President and Chief Executive Officer.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

	 	 	 
	 
	 	[authorized signatory]
	 
	 	 
	 
	 	           Notary Public
	 
	My Commission Expires:                    

PREPARED BY:
Virgil G. Thompson, Esq.
Weirton Steel Corporation
400 Three Springs Drive
Weirton, WV 26062	 	

22exv10w8w1

Exhibit 10.8.1

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (“Amendment”), dated and effective as of April 1, 2002, by and
between West Virginia Economic Development Authority, a West Virginia public corporation and
government instrumentality, having its principal office at 160 Association Drive, Charleston, West
Virginia 25311-1217 (hereinafter referred to as “Landlord”), and Pennsylvania Fashions, Inc., a
Pennsylvania corporation, having its principal office at 155 Thornhill Drive, Warrendale,
Pennsylvania 15086 (hereinafter referred to as “Tenant”).

          WITNESSETH THAT:

          WHEREAS, Landlord and Tenant are parties to that certain Lease dated June 28, 1999, for an
approximately 189,600 square foot building and associated improvements located at the Three
Springs Industrial and Business Park in Weirton, Brooke County, West Virginia (“Lease”);

          WHEREAS, on February 4, 2002, Tenant filed a voluntary petition for relief under Chapter 11
of Title 11 of the United States Code, 11 U.S.C. Section 101, et seq., as amended;

          WHEREAS, by Order entered on April 1, 2002, the Bankruptcy Court extended the time for the
Tenant to reject or assume nonresidential real estate leases until August 5, 2002; and

          WHEREAS, Landlord and Tenant agree to amend the Lease to temporarily modify the Base Rent,
all as provided for herein.

     NOW, THEREFORE, for and in consideration of the foregoing preambles, of the mutual promises
and covenants contained herein, of Ten Dollars ($10.00) cash in hand paid by Tenant to Landlord,
and the other good and valuable consideration, the receipt and sufficiency of all of which is
hereby acknowledged, the parties hereby agree as follows:

     1. Base Rent. The Base Rent set forth in Section 4.01 of the Lease is hereby
modified as follows:

          a. The Base Rent is reduced to $420,000 per year, payable monthly in
advance in the sum of $35,000 per month, effective with the April 15, 2002 payment, and
continuing through and including the March 15, 2003 payment.

          b. The Base Rent is reduced to $444,000 per year, payable monthly in
advance in the sum of $37,000 per month, effective with the April 15, 2003 payment, and
continuing through and including the January 15, 2004 payment.

          c. Effective with the February 15, 2004 payment, the Base Rent payments shall resume as set forth in Section 4.01 of the Lease, and shall continue thereafter in
full force
and effect for the remaining Term of the Lease.

 

 

2. Duration of Amendment. This Amendment shall continue and remain effective provided that
the Lease is assumed by the Tenant by the earlier of the date that the Tenant’s Chapter 11 plan of
reorganization is confirmed by the Bankruptcy Court or June 30, 2003, whichever occurs first. In
the event that the Lease is not assumed by the Tenant on the earlier of the date that the Tenant’s
Chapter 11 plan of reorganization is confirmed or June 30, 2003, then this Amendment shall
automatically terminate and be null, void and of no further effect without any additional action by
the parties. Should this Amendment terminate as provided herein, then Landlord shall retain the
right to claim all amounts of reduced Basic Rent under the Lease for the post-petition period as an
administrative expense in the Chapter 11 bankruptcy case of the Tenant.

     3. Notice Address.

          a. Landlord’s address as set forth in Section 24.01 of the Lease is hereby
modified by deleting the reference to the Landlord Notice address and replacing it with the
following:

West Virginia Economic Development Authority

NorthGate Business Park

160 Association Drive

Charleston, West Virginia 25311-1217

Attn: Executive Director

          b. Tenant’s address as set forth in Section 24.01 of the Lease is hereby
modified by deleting all reference to the Tenant Notice address and the associated copies in
their
entirety and replacing them with the following:

Pennsylvania Fashions, Inc.

155 Thornhill Drive

Warrendale, PA 15086

Attn: Real Estate Legal Department

     4. Reservation of Rights. Landlord understands and acknowledges that Tenant has
commenced proceedings under Chapter 11 of the United States Bankruptcy Code and that nothing
herein shall constitute an assumption of the Lease or constitute a post-petition new lease under
applicable Bankruptcy laws. Landlord acknowledges that Tenant expressly reserves all rights and
remedies available to it as a Debtor-in-Possession under applicable Bankruptcy laws with regard to
the rejection or assumption of the Lease.

     5. Waiver of Pre-petitions Claims. Landlord hereby agrees to waive all pre-petition
claims for amounts due and owing under the Lease.

     6. Effect of Amendment. All other terms and conditions of the Lease shall remain and
continue in full force and effect and shall be deemed unchanged except to the extent amended
herein.

2

 

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be executed and
delivered by their duly authorized officers as of the date first above written.

	 	 	 	 	 
	LANDLORD:	 	West Virginia Economic Development Authority
	 
	 	 	 	 
	WITNESS:
	 	 	 	 
	 
	 	 	 	 
	/s/ Deborah J. Orcutt	 	/s/ David A. Warner
	 	 	 
	 

	 	By:
	 	David A. Warner
	 

	 	Its:
	 	Executive Director
	 
	 	 	 	 
	TENANT:	 	Pennsylvania Fashions, Inc.
	 
	 	 	 	 
	WITNESS:
	 	 	 	 
	 
	 	 	 	 
	[ILLEGIBLE]	 	/s/ Rick C. Welker
	 	 	 
	 

	 	By:
	 	Rick C. Welker
	 

	 	Its:
	 	Senior Vice President & CFO

3

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