Document:

<PAGE>
                                                                    EXHIBIT 10.1

                           MASTER SEPARATION AGREEMENT

                                     BETWEEN

                              RETAIL VENTURES, INC.

                                       AND

                                    DSW INC.

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                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                             <C>
ARTICLE I DOCUMENTS AND ITEMS TO BE DELIVERED ON THE IPO DATE ..........................................         4

   Section 1.1    DOCUMENTS TO BE DELIVERED BY RETAIL VENTURES .........................................         4

   Section 1.2    DOCUMENTS TO BE DELIVERED BY DSW .....................................................         5

ARTICLE II THE IPO AND ACTIONS PENDING THE IPO; DISTRIBUTION ...........................................         5

   Section 2.1    TRANSACTIONS PRIOR TO THE IPO ........................................................         5

   Section 2.2    COOPERATION ..........................................................................         6

   Section 2.3    DEBT REORGANIZATION EVENTS ...........................................................         6

   Section 2.4    CONDITIONS PRECEDENT TO CONSUMMATION OF THE IPO ......................................         7

   Section 2.5    DISTRIBUTION .........................................................................         8

ARTICLE III COVENANTS AND OTHER MATTERS ................................................................         9

   Section 3.1    OTHER AGREEMENTS .....................................................................         9

   Section 3.2    FURTHER INSTRUMENTS ..................................................................         9

   Section 3.3    AGREEMENT FOR EXCHANGE OF INFORMATION ................................................         9

   Section 3.4    AUDITORS AND AUDITS; FINANCIAL STATEMENTS; ACCOUNTING MATTERS ........................        11

   Section 3.5    CONFIDENTIALITY ......................................................................        14

   Section 3.6    PRIVILEGED MATTERS ...................................................................        16

   Section 3.7    MAIL AND OTHER COMMUNICATIONS ........................................................        18

   Section 3.8    EMPLOYMENT MATTERS ...................................................................        18

   Section 3.9    PAYMENT OF EXPENSES ..................................................................        18

   Section 3.10   DISPUTE RESOLUTION ...................................................................        19

   Section 3.11   GOVERNMENTAL APPROVALS ...............................................................        20

   Section 3.12   NO REPRESENTATION OR WARRANTY ........................................................        20

   Section 3.13   COMPLIANCE WITH LEGAL POLICIES .......................................................        21

   Section 3.14   DEBT REORGANIZATION RELATED DOCUMENTS ................................................        22

   Section 3.15   NORTHLAND ............................................................................        22

   Section 3.16   GUARANTEES ...........................................................................        23

   Section 3.17   RUN-OFF OF ACCOUNTS ..................................................................        23

ARTICLE IV REGISTRATION RIGHTS .........................................................................        23

   Section 4.1    DEMAND REGISTRATION ..................................................................        23
</TABLE>

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<TABLE>
<S>                                                                                                             <C>
   Section 4.2    PIGGYBACK REGISTRATION ...............................................................        25

   Section 4.3    EXPENSES .............................................................................        27

   Section 4.4    BLACKOUT PERIOD ......................................................................        28

   Section 4.5    SELECTION OF UNDERWRITERS ............................................................        28

   Section 4.6    OBLIGATIONS OF DSW ...................................................................        28

   Section 4.7    OBLIGATIONS OF SELLING HOLDERS .......................................................        30

   Section 4.8    UNDERWRITING; DUE DILIGENCE ..........................................................        30

   Section 4.9    INDEMNIFICATION AND CONTRIBUTION .....................................................        31

   Section 4.10   RULE 144 AND FORM S-3 ................................................................        35

   Section 4.11   HOLDBACK AGREEMENT ...................................................................        35

   Section 4.12   TERM .................................................................................        36

ARTICLE V MUTUAL RELEASES; INDEMNIFICATION .............................................................        36

   Section 5.1    RELEASE OF PRE-IPO DATE CLAIMS .......................................................        36

   Section 5.2    INDEMNIFICATION BY DSW ...............................................................        37

   Section 5.3    INDEMNIFICATION BY RETAIL VENTURES ...................................................        38

   Section 5.4    ANCILLARY AGREEMENT LIABILITIES ......................................................        38

   Section 5.5    OTHER AGREEMENTS EVIDENCING INDEMNIFICATION OBLIGATIONS ..............................        38

   Section 5.6    REDUCTIONS FOR INSURANCE PROCEEDS AND OTHER RECOVERIES ...............................        38

   Section 5.7    PROCEDURES FOR DEFENSE, SETTLEMENT AND INDEMNIFICATION OF THIRD PARTY CLAIMS .........        40

   Section 5.8    ADDITIONAL MATTERS ...................................................................        41

   Section 5.9    SURVIVAL OF INDEMNITIES ..............................................................        42

ARTICLE VI INSURANCE MATTERS ...........................................................................        42

   Section 6.1    DSW INSURANCE COVERAGE DURING THE INSURANCE TRANSITION PERIOD ........................        42

   Section 6.2    DSW INSURANCE COVERAGE AFTER THE INSURANCE TRANSITION PERIOD .........................        42

ARTICLE VII MISCELLANEOUS ..............................................................................        42

   Section 7.1    LIMITATION OF LIABILITY ..............................................................        42

   Section 7.2    ENTIRE AGREEMENT .....................................................................        43

   Section 7.3    GOVERNING LAW AND JURISDICTION .......................................................        43
</TABLE>

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<TABLE>
<S>                                                                                                             <C>
   Section 7.4    TERMINATION; AMENDMENT ...............................................................        43

   Section 7.5    NOTICES ..............................................................................        43

   Section 7.6    COUNTERPARTS .........................................................................        44

   Section 7.7    BINDING EFFECT; ASSIGNMENT ...........................................................        44

   Section 7.8    SEVERABILITY .........................................................................        45

   Section 7.9    FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE ................................        45

   Section 7.10   AUTHORITY ............................................................................        45

   Section 7.11   INTERPRETATION .......................................................................        45

   Section 7.12   CONFLICTING AGREEMENTS ...............................................................        45

   Section 7.13   THIRD PARTY BENEFICIARIES ............................................................        46

ARTICLE VIII DEFINITIONS ...............................................................................        46

   Section 8.1    DEFINED TERMS ........................................................................        46
</TABLE>

                             EXHIBITS AND SCHEDULES

<TABLE>
<CAPTION>
Exhibit A         IP License
<S>               <C>
Schedule 1.1(c)   Certain Officers and/or Directors of Retail Ventures
Schedule 1.2(b)   Certain Officers and/or Directors of DSW
Schedule 2.3(g)   Cross-Factor Guaranty Agreements
</TABLE>

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<PAGE>

                           MASTER SEPARATION AGREEMENT

      This Master Separation Agreement is dated as of the 5th day of July,
2005, between Retail Ventures, Inc., an Ohio corporation ("Retail Ventures"),
and DSW Inc., an Ohio corporation ("DSW," with Retail Ventures, each a "Party,"
and together, the "Parties"). Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in Article VIII hereof.

                                    RECITALS

      WHEREAS, Retail Ventures is the beneficial owner of all the issued and
outstanding common shares of DSW;

      WHEREAS, Retail Ventures, through its wholly-owned subsidiary, DSW, is
engaged in the business of retailing specialty branded footwear (the "DSW
Business"), as more completely described in a Registration Statement on Form S-1
(File No. 333-123289) filed with the Securities and Exchange Commission
("Commission") under the Securities Act, as amended (the "IPO Registration
Statement");

      WHEREAS, Retail Ventures and DSW currently contemplate that DSW will make
an initial public offering ("IPO") pursuant to the IPO Registration Statement of
an amount of its Class A common shares that will reduce Retail Ventures'
ownership of the combined voting power of the Class A common shares and Class B
common shares, voting together as a single class, to not less than 80.1%; and

      WHEREAS, the Parties intend in this Agreement, including the Exhibits and
Schedules hereto, to set forth the principal arrangements between them regarding
the separation of the DSW Business from Retail Ventures.

      NOW, THEREFORE, in consideration of the foregoing and the terms,
conditions, covenants and provisions of this Agreement, Retail Ventures and DSW
mutually covenant and agree as follows:

                                    ARTICLE I
                            DOCUMENTS AND ITEMS TO BE
                            DELIVERED ON THE IPO DATE

            Section 1.1 DOCUMENTS TO BE DELIVERED BY RETAIL VENTURES. On or
prior to the closing of the IPO (the "IPO Date"), Retail Ventures will deliver,
or will cause its appropriate Subsidiaries to deliver, to DSW all of the
following items and agreements:

                  (a) A duly executed Tax Separation Agreement substantially in
the form attached to the IPO Registration Statement as Exhibit 10.28 (the "Tax
Separation Agreement");

<PAGE>

                  (b) A duly executed Shared Services Agreement, substantially
in the form attached to the IPO Registration Statement as Exhibit 10.27 (the
"Shared Services Agreement");

                  (c) The resignations of certain officers and/or directors of
Retail Ventures and/or any member of the Retail Ventures Group who will become
officers and/or directors of DSW and who are identified on Schedule 1.1(c);

                  (d) A duly executed agreement governing the continuing use of
United States Patent No. D495,172 and any patent that issues from Patent
Application No. 29/205,562 substantially in the form attached hereto as Exhibit
A (the "IP License");

                  (e) A duly executed Exchange Agreement substantially in the
form attached to the IPO Registration Statement as Exhibit 4.4 (the "Share
Exchange Agreement"); and

                  (f) Such other agreements, documents or instruments as the
Parties may agree are necessary or desirable in order to achieve the purposes
hereof.

            Section 1.2 DOCUMENTS TO BE DELIVERED BY DSW. On or prior to the IPO
Date, DSW will deliver, or will cause its appropriate Subsidiaries to deliver,
to Retail Ventures all of the following items and agreements:

                  (a) In each case where DSW is a party to any agreement or
instrument referred to in Section 1.1, a duly executed counterpart of such
agreement or instrument;

                  (b) The resignations of certain officers and/or directors of
DSW and/or its Subsidiary who will become officers and/or directors of Retail
Ventures and/or any member of the Retail Ventures Group and who are identified
on Schedule 1.2 (b); and

                  (c) Such other agreements, documents or instruments as the
Parties may agree are necessary or desirable in order to achieve the purposes
hereof.

                                   ARTICLE II
                THE IPO AND ACTIONS PENDING THE IPO; DISTRIBUTION

            Section 2.1 TRANSACTIONS PRIOR TO THE IPO. Subject to the occurrence
of the events described in this Article II, Retail Ventures and DSW intend to
consummate the IPO and to take, or cause to be taken, the actions specified in
this Section 2.1.

                  (a) REGISTRATION STATEMENT. DSW has filed the IPO Registration
Statement, and intends to file such amendments or supplements thereto as may be
necessary in order to cause the same to become and remain effective as required
by law or by the managing underwriters for the IPO (the "Underwriters"),
including, without limitation, filing such amendments or supplements to the IPO
Registration

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Statement as may be required by the underwriting agreement to be entered into
among DSW and the Underwriters (the "Underwriting Agreement"), the Commission or
federal, state or foreign securities laws. Retail Ventures and DSW also intend
to cooperate in preparing, filing with the Commission and causing to become
effective a registration statement registering the Class A common shares of DSW
under the Securities and Exchange Act of 1934, as amended (the "Exchange Act"),
and any registration statements or amendments thereof which are required to
reflect the establishment of, or amendments to, any employee benefit and other
plans necessary or appropriate in connection with the IPO or the other
transactions contemplated by this Agreement.

                  (b) UNDERWRITING AGREEMENT. DSW shall enter into the
Underwriting Agreement, in form and substance reasonably satisfactory to DSW and
comply with its obligations thereunder.

                  (c) NYSE LISTING. DSW intends to prepare, file and make
effective, an application for listing of its Class A common shares issued in the
IPO on the New York Stock Exchange ("NYSE"), subject to official notice of
issuance.

            Section 2.2 COOPERATION. DSW shall consult with, and cooperate in
all respects with, Retail Ventures in connection with the pricing of the Class A
common shares of DSW to be offered in the IPO and shall, at Retail Ventures'
direction, promptly take any and all actions necessary or desirable to
consummate the IPO as contemplated by the IPO Registration Statement and the
Underwriting Agreement.

            Section 2.3 DEBT REORGANIZATION EVENTS. Prior to, or concurrently
with, the IPO Date, Retail Ventures and DSW shall cause the following events to
occur (collectively, the "Debt Reorganization Events"), as more fully described
in the IPO Registration Statement:

                  (a) Retail Ventures will amend and restate the Loan and
Security Agreement, as amended, entered into with National City Commercial
Finance, Inc. (n/k/a National City Business Credit, Inc.), as administrative
agent, and the other parties named therein, dated June 11, 2002, and DSW and its
wholly-owned subsidiary, DSW Shoe Warehouse, Inc., a Missouri corporation
("DSWSW"), will be released from their obligations thereunder;

                  (b) Retail Ventures will amend the Financing Agreement, as
amended, among Cerberus Partners L.P., or Cerberus, as agent and lender,
Schottenstein Stores Corporation, an Ohio corporation ("SSC"), as lender, and
the other parties named therein, dated June 11, 2002;

                  (c) Retail Ventures will enter into a Second Amended and
Restated Senior Loan Agreement amending and restating the Amended and Restated
Senior Subordinated Convertible Loan Agreement, as amended, entered into with
Cerberus, as agent and lender, SSC, as lender, and the other parties named
therein, dated June 11, 2002; and DSW will be released from its obligations
thereunder;

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                  (d) Pursuant to the Second Amended and Restated Senior Loan
Agreement, Retail Ventures will amend and restate the outstanding warrants dated
as of September 26, 2002 ("Term Loan Warrants") and will issue "Conversion
Warrants" (as defined in the Second Amended and Restated Senior Loan Agreement)
(the Term Loan Warrants and the Conversion Warrants being referred to
collectively as the "Warrants");

                  (e) Retail Ventures will enter into a Second Amended and
Restated Registration Rights Agreement amending the Registration Rights
Agreement dated June 11, 2002;

                  (f) DSW will enter into a Registration Rights Agreement with
Cerberus and SSC;

                  (g) Retail Ventures and DSW will terminate the cross-factor
guaranty agreements listed on Schedule 2.3(g); and

                  (h) DSW will enter into a new five-year $150 million secured
revolving credit facility with National City Business Credit, Inc., as
administrative agent (the "DSW Credit Facility").

            Section 2.4 CONDITIONS PRECEDENT TO CONSUMMATION OF THE IPO. The
obligations of the Parties to consummate the IPO shall be conditioned on the
satisfaction of the following conditions (collectively, the "IPO Conditions"):

                  (a) DEBT REORGANIZATION EVENTS. Retail Ventures and DSW shall
have consummated the Debt Reorganization Events;

                  (b) REGISTRATION STATEMENT. The IPO Registration Statement
shall have been filed and declared effective by the Commission, and there shall
be no stop-order in effect with respect thereto;

                  (c) BLUE SKY. The actions and filings with regard to
applicable securities and blue sky laws of any state (and any comparable laws
under any foreign jurisdictions) shall have been taken and, where applicable,
have become effective or been accepted;

                  (d) NYSE LISTING. The Class A common shares of DSW to be
issued in the IPO shall have been accepted for listing on the NYSE, on official
notice of issuance;

                  (e) UNDERWRITING AGREEMENT. DSW shall have entered into the
Underwriting Agreement and all conditions to the obligations of DSW and the
Underwriters shall have been satisfied or waived by the party that is entitled
to the benefit thereof;

                  (f) STOCK OWNERSHIP. Retail Ventures shall be satisfied, in
its sole discretion, that it will own at least 80.1% of the combined voting
power of the outstanding Class A common shares and Class B common shares, voting
together as a

                                       7
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single class, and that DSW will have no class of DSW Capital Stock other than
the Common Shares outstanding, immediately following the IPO;

                  (g) NO LEGAL RESTRAINTS. No order, injunction or decree issued
by any court or agency of competent jurisdiction or other legal restraint or
prohibition preventing the consummation of the IPO or any of the other
transactions contemplated by this Agreement shall be in effect;

                  (h) DELIVERIES. Each Party shall have made the deliveries
required pursuant to Section 1.1 and Section 1.2, respectively; and

                  (i) OTHER ACTIONS. Such other actions as the Parties hereto
may, based upon the advice of counsel, reasonably request to be taken prior to
the IPO in order to assure the successful completion of the IPO, shall have been
taken.

Retail Ventures and DSW shall each use their reasonable best efforts to satisfy,
or cause to be satisfied, the IPO Conditions.

            Section 2.5 DISTRIBUTION.

                  (a) DISTRIBUTION GENERALLY. At any time after the IPO Date, if
Retail Ventures, in its sole and absolute discretion, advises DSW that Retail
Ventures intends to pursue a Distribution, DSW agrees to take all action
reasonably requested by Retail Ventures to facilitate the Distribution.

                  (b) RETAIL VENTURES' SOLE DISCRETION. Retail Ventures shall,
in its sole and absolute discretion, determine whether to proceed with all or
part of a Distribution, the date of the consummation of the Distribution and all
terms of the Distribution, including, without limitation, the form, structure
and terms of any transaction(s) and/or offering(s) to effect the Distribution
and the timing of and conditions to the consummation of the Distribution. In
addition, Retail Ventures may at any time and from time to time until the
completion of the Distribution, modify or change the terms of the Distribution,
including, without limitation, by accelerating or delaying the timing of the
consummation of all or part of the Distribution. DSW shall cooperate with Retail
Ventures in all respects to accomplish the Distribution and shall, at Retail
Ventures' direction, promptly take any and all actions that Retail Ventures
deems reasonably necessary or desirable to effect the Distribution. Without
limiting the generality of the foregoing, DSW shall, at Retail Ventures'
direction, cooperate with Retail Ventures, and execute and deliver, or use its
best efforts to cause to have executed and delivered, all instruments, including
instruments of conveyance, assignment and transfer, and to make all filings
with, and to obtain all consents, approvals or authorizations of, any domestic
or foreign governmental or regulatory authority requested by Retail Ventures in
order to consummate and make effective the Distribution. If, in connection with
any Distribution, Retail Ventures makes a Request (as defined herein) for a
Demand Registration (as defined herein), the terms and the conditions set forth
in Article IV hereof shall govern.

                                       8
<PAGE>

                                  ARTICLE III
                           COVENANTS AND OTHER MATTERS

            Section 3.1 OTHER AGREEMENTS. Retail Ventures and DSW agree to
execute or cause to be executed by the appropriate parties and deliver, as
appropriate, such other agreements, instruments and other documents as may be
necessary or desirable in order to effect the purposes of this Agreement and the
Inter-Company Agreements.

            Section 3.2 FURTHER INSTRUMENTS. At the request of DSW, and without
further consideration, Retail Ventures will execute and deliver, and will cause
its applicable Subsidiaries to execute and deliver, to DSW such other
instruments of transfer, conveyance, assignment, substitution and confirmation
and take such action as DSW may reasonably deem necessary or desirable in order
to transfer, convey and assign to DSW and confirm DSW's title to any assets,
rights and other things of value used in the operation of the DSW Business prior
to the IPO Date or to be transferred to DSW pursuant to this Agreement, the
Inter-Company Agreements or any document referred to therein, to put DSW in
actual possession and operating control thereof and to permit DSW to exercise
all rights with respect thereto (including, without limitation, rights under
contracts and other arrangements as to which the consent of any third party to
the transfer thereof shall not have previously been obtained); provided,
however, that any such assets, rights or other things of value not reflected on
the DSW Balance Sheet shall only be transferred against payment by DSW to Retail
Ventures or its applicable Subsidiary of an amount equal to the book value
thereof. At the request of Retail Ventures and without further consideration,
DSW will execute and deliver to Retail Ventures and its Subsidiaries all
instruments, assumptions, novations, undertakings, substitutions or other
documents and take such other action as Retail Ventures may reasonably deem
necessary or desirable in order to have DSW fully and unconditionally assume and
discharge the DSW Liabilities. Except as hereinabove provided, neither Retail
Ventures nor DSW shall be obligated, in connection with the foregoing, to expend
money other than reasonable out-of-pocket expenses, attorneys' fees and
recording or similar fees, unless reimbursed by the other Party. Furthermore,
each Party, at the request of the other Party hereto, shall execute and deliver
such other instruments and do and perform such other acts and things as may be
necessary or desirable for effecting completely the consummation of the
transactions contemplated hereby.

            Section 3.3 AGREEMENT FOR EXCHANGE OF INFORMATION.

                  (a) GENERALLY. Each of Retail Ventures and DSW agrees to
provide, or cause to be provided, to the other, at any time, as soon as
reasonably practicable after written request therefor, all reports and other
Information regularly provided by one Party to the other Party to Retail
Ventures prior to the IPO Date and any Information in the possession or under
the control of such Party that the requesting Party reasonably needs (i) to
comply with reporting, disclosure, filing or other requirements imposed on the
requesting Party (including under applicable securities laws) by a Governmental
Authority having jurisdiction over the requesting Party, (ii) for use in any
other judicial, regulatory, administrative or other proceeding or in order to
satisfy audit,

                                       9
<PAGE>

accounting, claims, regulatory, litigation or other similar requirements, (iii)
to comply with its obligations under this Agreement, any Inter-Company Agreement
or the Warrants or (iv) during the period from the IPO Date until the
Distribution Date (the "Pre-Distribution Period") and thereafter to the extent
such Information and cooperation is necessary to comply with such reporting,
filing and disclosure obligations, for the preparation of financial statements
or completing an audit, and as reasonably necessary to conduct the ongoing
businesses of Retail Ventures or DSW, as the case may be; PROVIDED, HOWEVER,
that in the event that any Party determines that any such provision of
Information could be commercially detrimental, violate any law or agreement, or
waive any attorney-client privilege, the Parties shall take all reasonable
measures to permit the compliance with such obligations in a manner that avoids
any such harm or consequence. Each of Retail Ventures and DSW agree to make
their respective personnel available to discuss the Information exchanged
pursuant to this Section 3.3.

                  (b) INTERNAL ACCOUNTING CONTROLS; FINANCIAL INFORMATION.
Except as otherwise provided in the Shared Services Agreement, after the IPO
Date, (i) each Party shall maintain in effect at its own cost and expense
adequate systems and controls for its business to the extent necessary to enable
the other Party to satisfy its reporting, tax return, accounting, audit and
other obligations, and (ii) each Party shall provide, or cause to be provided,
to the other Party and its Subsidiaries in such form as such requesting Party
shall request, at no charge to the requesting Party, all financial and other
data and information as the requesting Party determines necessary or advisable
in order to prepare its financial statements and reports or filings with any
Governmental Authority. After the expiration of Retails Ventures' obligations to
provide internal auditing and related services pursuant to the Shared Services
Agreement, DSW shall be responsible its obligations under this Section 3.3(b).

                  (c) OWNERSHIP OF INFORMATION. Any Information owned by a Party
that is provided to a requesting Party pursuant to this Section 3.3 shall be
deemed to remain the property of the providing Party. Unless specifically set
forth herein, nothing contained in this Agreement shall be construed as granting
or conferring rights of license or otherwise in any such Information.

                  (d) RECORD RETENTION. To facilitate the possible exchange of
Information pursuant to this Section 3.3 and other provisions of this Agreement
after the Distribution Date, each Party agrees to use its best efforts until the
Distribution Date to retain all Information in its respective possession or
control substantially in accordance with its respective record retention
policies and/or practices as in effect on the IPO Date. However, except as set
forth in the Tax Separation Agreement, at any time after the Distribution Date,
each Party may amend its respective record retention policies at such Party's
discretion; PROVIDED, HOWEVER, that if a Party desires to effect the amendment
within three (3) years after the Distribution Date, the amending Party must give
thirty (30) days prior written notice of such change in the policy to the other
Party to this Agreement. No Party will destroy, or permit any of its
Subsidiaries to destroy, any Information that exists on the IPO Date (other than
Information that is permitted to be destroyed under the current respective
record retention policies of each Party) and that

                                       10
<PAGE>

falls under the categories listed in Section 3.3(a), without first notifying the
other Party of the proposed destruction and giving the other Party the
opportunity to take possession or make copies of such Information prior to such
destruction.

                  (e) LIMITATION OF LIABILITY. Each Party will use its best
efforts to ensure that Information provided to the other Party hereunder is
accurate and complete; PROVIDED, HOWEVER, no Party shall have any liability to
any other Party in the event that any Information exchanged or provided pursuant
to this Section 3.3 is found to be inaccurate, in the absence of gross
negligence or willful misconduct by the party providing such Information. No
Party shall have any liability to any other Party if any Information is
destroyed or lost after the relevant Party has complied with the provisions of
Section 3.3(d).

                  (f) OTHER AGREEMENTS PROVIDING FOR EXCHANGE OF INFORMATION.
The rights and obligations granted under this Section 3.3 are subject to any
specific limitations, qualifications or additional provisions on the sharing,
exchange or confidential treatment of Information set forth in this Agreement
and any Inter-Company Agreement.

                  (g) PRODUCTION OF WITNESSES; RECORDS; COOPERATION. After the
IPO Date, except in the case of a legal or other proceeding by one Party against
another Party, each Party hereto shall use its commercially reasonable efforts
to make available to each other Party, upon written request, the former, current
and future directors, officers, employees, other personnel and agents of such
Party as witnesses and any books, records or other documents within its control
or which it otherwise has the ability to make available, to the extent that any
such person (giving consideration to business demands of such directors,
officers, employees, other personnel and agents) or books, records or other
documents may reasonably be required in connection with any legal,
administrative or other proceeding in which the requesting Party may from time
to time be involved, regardless of whether such legal, administrative or other
proceeding is a matter with respect to which indemnification may be sought
hereunder. The requesting Party shall bear all costs and expenses in connection
therewith.

            Section 3.4 AUDITORS AND AUDITS; FINANCIAL STATEMENTS; ACCOUNTING
MATTERS.

      Each Party agrees that:

                  (a) SELECTION OF AUDITORS. Until the first Retail Ventures
fiscal year end occurring after the Distribution Date, DSW shall provide Retail
Ventures as much prior notice as reasonably practical of any change in its
independent certified public accountants as of the Distribution Date ("DSW's
Auditors") for purposes of providing an opinion on its consolidated financial
statements.

                  (b) DATE OF AUDITORS' OPINION AND QUARTERLY REVIEWS. Until the
first Retail Ventures fiscal year end occurring after the Distribution

                                       11
<PAGE>

Date and thereafter to the extent necessary for the purpose of preparing
financial statements or completing a financial statement audit, DSW shall use
its best efforts to enable the DSW Auditors to complete their audit such that
they will date their opinion on DSW's audited annual financial statements on the
same date that Retail Ventures' independent certified public accountants
("Retail Ventures' Auditors") date their opinion on Retail Ventures' audited
annual financial statements, and to enable Retail Ventures to meet its timetable
for the printing, filing and public dissemination of Retail Ventures' annual
financial statements. Until the first Retail Ventures fiscal year end occurring
after the Distribution Date and thereafter to the extent necessary for the
purpose of preparing financial statements or completing a financial statement
audit, DSW shall use its best efforts to enable the DSW Auditors to complete
their annual audit and quarterly review procedures such that they will provide
clearance on DSW's annual and quarterly financial statements on the same date
that Retail Ventures' Auditors provide clearance on Retail Ventures' annual and
quarterly financial statements.

                  (c) ANNUAL AND QUARTERLY FINANCIAL STATEMENTS. Until the
Distribution Date, DSW shall not change its fiscal year and, until the Retail
Ventures fiscal year end first occurring after the Distribution Date and
thereafter to the extent necessary for the purpose of preparing financial
statements or completing a financial statement audit, shall provide to Retail
Ventures on a timely basis all Information that Retail Ventures reasonably
requires to meet its schedule for the preparation, printing, filing, and public
dissemination of Retail Ventures' annual, quarterly and monthly financial
statements. Without limiting the generality of the foregoing, DSW will provide
all required financial Information with respect to DSW to DSW's Auditors in a
sufficient and reasonable time and in sufficient detail to permit DSW's Auditors
to take all steps and perform all reviews necessary to provide sufficient
assistance to Retail Ventures' Auditors with respect to financial Information to
be included or contained in Retail Ventures' annual, quarterly and monthly
financial statements. Similarly, Retail Ventures shall provide to DSW on a
timely basis all financial Information that DSW reasonably requires to meet its
schedule for the preparation, printing, filing, and public dissemination of
DSW's annual, quarterly and monthly financial statements. Without limiting the
generality of the foregoing, Retail Ventures will provide all required financial
Information with respect to Retail Ventures and its Subsidiaries to DSW's
Auditors in a sufficient and reasonable time and in sufficient detail to permit
DSW's Auditors to take all steps and perform all reviews necessary to provide
sufficient assistance to DSW's Auditors with respect to Information to be
included or contained in DSW's annual and quarterly financial statements.

                  (d) CERTIFICATIONS AND ATTESTATIONS. Until the first Retail
Ventures fiscal year end occurring after the Distribution Date and thereafter to
the extent necessary for the timely filing by Retail Ventures of annual and
quarterly reports under the Exchange Act, DSW shall cause its appropriate
officers and employees to provide to Retail Ventures on a timely basis any
certificates reasonably requested by Retail Ventures as support for the
certifications and attestations required by Sections 302, 906 and 404 of the
Sarbanes-Oxley Act of 2002 to be filed with such annual and quarterly reports.
For so long as Retail Ventures is providing accounting and financial services
pursuant to the Shared Services Agreement and thereafter to the extent necessary

                                       12
<PAGE>

for the timely filing by DSW of annual and quarterly reports under the Exchange
Act, Retail Ventures shall cause its appropriate officers and employees to
provide to DSW on a timely basis any certificates reasonably requested by DSW as
support for the certifications and attestations required by Sections 302, 906
and 404 of the Sarbanes-Oxley Act of 2002 to be filed with such annual and
quarterly reports.

                  (e) COMPLIANCE WITH LAWS, POLICIES AND REGULATIONS. Until the
Distribution Date, DSW shall comply with all financial accounting and reporting
rules, policies and directives of Retail Ventures, and fulfill all timing and
reporting requirements, applicable to Retail Ventures' Subsidiaries that are
consolidated with Retail Ventures for financial statement purposes. Without
limiting the foregoing, DSW shall comply with all financial accounting and
reporting rules and policies, and fulfill all timing and reporting requirements,
under applicable federal securities laws and NYSE rules.

                  (f) IDENTITY OF PERSONNEL PERFORMING THE ANNUAL AUDIT AND
QUARTERLY REVIEWS. Until the Distribution Date and thereafter to the extent such
information and cooperation is necessary for the preparation of financial
statements or completing a financial statements audit, DSW shall authorize DSW's
Auditors to make available to Retail Ventures' Auditors both the personnel who
performed or will perform the annual audits and quarterly reviews of DSW and
work papers related to the annual audits and quarterly reviews of DSW, in all
cases within a reasonable time prior to DSW's Auditors' opinion date, so that
Retail Ventures' Auditors are able to perform the procedures they consider
necessary to take responsibility for the work of DSW's Auditors as it relates to
Retail Ventures' Auditors' report on Retail Ventures' financial statements, all
within sufficient time to enable Retail Ventures to meet its timetable for the
printing, filing and public dissemination of Retail Ventures' annual and
quarterly statements. Similarly, Retail Ventures shall authorize Retail
Ventures' Auditors to make available to DSW's Auditors both the personnel who
performed or will perform the annual audits and quarterly reviews of Retail
Ventures and work papers related to the annual audits and quarterly reviews of
Retail Ventures, in all cases within a reasonable time prior to Retail Ventures'
Auditors' opinion date, so that DSW's Auditors are able to perform the
procedures they consider necessary to take responsibility for the work of Retail
Ventures' Auditors as it relates to DSW's Auditors' report on DSW's statements,
all within sufficient time to enable DSW to meet its timetable for the printing,
filing and public dissemination of DSW's annual and quarterly financial
statements.

                  (g) ACCESS TO BOOKS AND RECORDS. Until the Distribution Date
and thereafter to the extent such information and cooperation is necessary for
the preparation of financial statements or completing a financial statements
audit, all governmental audits are complete and the applicable statute of
limitations for tax matters has expired, DSW shall provide Retail Ventures'
internal auditors, counsel and other designated representatives of Retail
Ventures access during normal business hours to (i) the premises of DSW and all
Information (and duplicating rights) within the knowledge, possession or control
of DSW and (ii) the officers and employees of DSW, so that Retail Ventures may
conduct reasonable audits relating to the financial statements provided by DSW
pursuant hereto as well as to the internal accounting controls and

                                       13
<PAGE>

operations of DSW. Similarly, Retail Ventures shall provide DSW's internal
auditors, counsel and other designated representatives of DSW access during
normal business hours to (i) the premises of Retail Ventures and its
Subsidiaries and all Information (and duplicating rights with respect thereto)
within the knowledge, possession or control of Retail Ventures and its
Subsidiaries and (ii) the officers and employees of Retail Ventures and its
Subsidiaries, so that DSW may conduct reasonable audits relating to the
financial statements provided by Retail Ventures pursuant hereto as well as to
the internal accounting controls and operations of Retail Ventures and its
Subsidiaries.

                  (h) NOTICE OF CHANGE IN ACCOUNTING PRINCIPLES. Until the
Distribution Date and thereafter if a change in accounting principles by a Party
hereto would affect the historical financial statements of the other Party,
neither Party shall make or adopt any significant changes in its accounting
estimates or accounting principles from those in effect on the IPO Date without
first consulting with the other Party, and if requested by the other Party, such
Party's independent public accountants with respect thereto. Retail Ventures
shall give DSW as much prior notice as reasonably practical of any proposed
determination of, or any significant changes in, its accounting estimates or
accounting principles from those in effect on the IPO Date. Retail Ventures will
consult with DSW and, if requested by DSW, Retail Ventures will consult with
DSW's independent public accountants with respect thereto.

                  (i) CONFLICT WITH THIRD-PARTY AGREEMENTS. Nothing in Section
3.3 or Section 3.4 shall require DSW to violate any agreement with any third
party regarding the confidentiality of confidential and proprietary information
relating to that third party or its business; PROVIDED, HOWEVER, that in the
event that DSW is required under Section 3.3 or Section 3.4 to disclose any such
Information, DSW shall use its best efforts to seek to obtain such third party's
consent to the disclosure of such information.

            Section 3.5 CONFIDENTIALITY.

                  (a) For a period beginning on the IPO date and continuing
until the second anniversary of the Distribution Date, Retail Ventures and DSW
shall hold and shall cause each of their respective Subsidiaries to hold, and
shall each cause their respective officers, employees, agents, consultants and
advisors to hold, in strict confidence and not to disclose or release without
the prior written consent of the other Party, any and all Confidential
Information (as defined herein) concerning the other Party; PROVIDED, that the
Parties may disclose, or may permit disclosure of, Confidential Information (i)
to their respective Affiliated Companies, auditors, attorneys, financial
advisors, bankers and other appropriate consultants and advisors who have a need
to know such information and are informed of their obligation to hold such
information confidential to the same extent as is applicable to the Parties
hereto and in respect of whose failure to comply with such obligations, DSW or
Retail Ventures, as the case may be, will be responsible or (ii) if the Parties
or any of their respective Affiliated Companies are compelled to disclose any
such Confidential Information by judicial or administrative process or, in the
opinion of independent legal counsel, by other requirements of law.
Notwithstanding the foregoing, in the event that any demand or

                                       14
<PAGE>

request for disclosure of Confidential Information is made pursuant to clause
(ii) above, Retail Ventures or DSW, as the case may be, shall promptly notify
the other of the existence of such request or demand and shall provide the other
a reasonable opportunity to seek an appropriate protective order or other
remedy, which both Parties will cooperate in obtaining. In the event that such
appropriate protective order or other remedy is not obtained, the Party whose
Confidential Information is required to be disclosed shall or shall cause the
other Party to furnish, or cause to be furnished, only that portion of the
Confidential Information that is legally required to be disclosed. As used in
this Section 3.5:

                        (i) "Confidential Information" shall mean Confidential
      Business Information and Confidential Operational Information concerning
      one Party which, prior to or following the IPO Date, has been disclosed by
      Retail Ventures or its Subsidiaries on the one hand, or DSW or its
      Subsidiaries, on the other hand, in written, oral (including by
      recording), electronic, or visual form to, or otherwise has come into the
      possession of, the other, including pursuant to the access provisions of
      Section 3.3 or Section 3.4 hereof or any other provision of this Agreement
      (except to the extent that such Information can be shown to have been (x)
      in the public domain through no fault of such Party (or any Party's
      Subsidiary) or (y) later lawfully acquired from other sources by the Party
      (or any Party's Subsidiary) to which it was furnished; PROVIDED, HOWEVER,
      in the case of (y) that such sources did not provide such Information in
      breach of any confidentiality obligations).

                        (ii) "Confidential Operational Information" shall mean
      all proprietary operational information, data or material including,
      without limitation, (a) specifications, ideas and concepts for products
      and services, (b) quality assurance policies, procedures and
      specifications, (c) customer information, (d) computer software and
      derivatives thereof, (e) training materials and information and (f) all
      other know-how, methodology, procedures, techniques and trade secrets
      related to design and development.

                        (iii) "Confidential Business Information" shall mean all
      proprietary information, data or material other than Confidential
      Operational Information, including, but not limited to (a) proprietary
      earnings reports and forecasts, (b) proprietary macro-economic reports and
      forecasts, (c) proprietary business plans, (d) proprietary general market
      evaluations and surveys and (e) proprietary financing and credit-related
      information.

                  (b) Notwithstanding anything to the contrary set forth herein,
(i) Retail Ventures and its Subsidiaries, on the one hand, and DSW and its
Subsidiary, on the other hand, shall be deemed to have satisfied their
obligations hereunder with respect to Confidential Information if they exercise
the same degree of care (but no less than a reasonable degree of care) as they
take to preserve confidentiality for their own similar

                                       15
<PAGE>

Information and (ii) confidentiality obligations provided for in any agreement
between Retail Ventures or its Subsidiaries, or DSW or any of its Subsidiaries,
on the one hand, and any employee of Retail Ventures or any of its Subsidiaries,
or DSW or any of its Subsidiaries, on the other hand shall remain in full force
and effect. Confidential Information of Retail Ventures and its Subsidiaries, on
the one hand, or DSW, on the other hand, in the possession of and used by the
other as of the IPO Date may continue to be used by such Person in possession of
the Confidential Information in and only in the operation of the business of
Retail Ventures or the DSW Business, as the case may be, and may be used only so
long as the Confidential Information is maintained in confidence and not
disclosed in violation of Section 3.5(a). Such continued right to use may not be
transferred to any third party unless the third party purchases all or
substantially all of the business and assets in one transaction or in a series
of related transactions for which or in which the relevant Confidential
Information is used or employed. In the event that such right to use is
transferred in accordance with the preceding sentence, the transferring Party
shall not disclose the source of the relevant Confidential Information.

            Section 3.6 PRIVILEGED MATTERS.

                  (a) Retail Ventures and DSW agree that their respective rights
and obligations to maintain, preserve, assert or waive any or all privileges
belonging to either corporation or their Subsidiaries with respect to the DSW
Business or the business of Retail Ventures, including but not limited to the
attorney-client and work product privileges (collectively, "Privileges"), shall
be governed by the provisions of this Section 3.6. With respect to Privileged
Information of Retail Ventures (as defined below), Retail Ventures shall have
sole authority in perpetuity to determine whether to assert or waive any or all
Privileges, and DSW shall take no action (nor permit any of its Subsidiaries to
take action) without the prior written consent of Retail Ventures that could
result in any waiver of any Privilege that could be asserted by Retail Ventures
or any of its Subsidiaries under applicable law and this Agreement. With respect
to Privileged Information of DSW (as defined below) arising after the IPO Date,
DSW shall have sole authority in perpetuity to determine whether to assert or
waive any or all Privileges, and Retail Ventures shall take no action (nor
permit any of its Subsidiaries to take action) without the prior written consent
of DSW that could result in any waiver of any Privilege that could be asserted
by DSW or any of its Subsidiaries under applicable law and this Agreement. The
rights and obligations created by this Section 3.6 shall apply to all
Information as to which Retail Ventures or DSW or their respective Subsidiaries
would be entitled to assert or has asserted a Privilege without regard to the
effect, if any, of the Distribution ("Privileged Information"). Privileged
Information of Retail Ventures includes but is not limited to (i) any and all
Information regarding the business of Retail Ventures and its Subsidiaries
(other than the DSW Business; PROVIDED that DSW has assumed and will be liable
on or after the IPO Date for any liability or claim arising with respect to such
Information), whether or not it is in the possession of DSW or any of its
Subsidiaries; (ii) all communications subject to a Privilege between counsel for
Retail Ventures (including in-house counsel) and any person who, at the time of
the communication, was an employee of Retail Ventures, regardless of whether
such employee is or becomes an employee of DSW or any of its Subsidiaries and
(iii) all Information generated, received or arising after the IPO Date that
refers or relates to

                                       16
<PAGE>

Privileged Information of Retail Ventures generated, received or arising prior
to the IPO Date. Privileged Information of DSW includes but is not limited to
(x) any and all Information regarding the DSW Business, whether or not it is in
the possession of Retail Ventures or any of its Subsidiaries; PROVIDED that DSW
has assumed and will be liable on or after the IPO Date for any liability or
claim arising with respect to such Information; (y) all communications subject
to a Privilege occurring after the IPO Date between counsel for the DSW Business
(including in-house counsel and former in-house counsel who are employees of
Retail Ventures) and any person who, at the time of the communication, was an
employee of DSW, regardless of whether such employee was, is or becomes an
employee of Retail Ventures or any of its Subsidiaries and (z) all Information
generated, received or arising after the IPO Date that refers or relates to
Privileged Information of DSW generated, received or arising after the IPO Date.

                  (b) Upon receipt by Retail Ventures or DSW, as the case may
be, of any subpoena, discovery or other request from any third party that
actually or arguably calls for the production or disclosure of Privileged
Information of the other or if Retail Ventures or DSW, as the case may be,
obtains knowledge that any current or former employee of Retail Ventures or DSW,
as the case may be, has received any subpoena, discovery or other request from
any third party that actually or arguably calls for the production or disclosure
of Privileged Information of the other, Retail Ventures or DSW, as the case may
be, shall promptly notify the other of the existence of the request and shall
provide the other a reasonable opportunity to review the Information and to
assert any rights it may have under this Section 3.6 or otherwise to prevent the
production or disclosure of Privileged Information. Retail Ventures or DSW, as
the case may be, will not produce or disclose to any third party any of the
other's Privileged Information under this Section 3.6 unless (a) the other has
provided its express written consent to such production or disclosure or (b) a
court of competent jurisdiction has entered an order not subject to
interlocutory appeal or review finding that the Information is not entitled to
protection from disclosure under any applicable privilege, doctrine or rule.

                  (c) Retail Ventures' transfer of books and records pertaining
to the DSW Business and other Information to DSW, if any, Retail Ventures'
agreement to permit DSW to obtain Information existing prior to the IPO Date,
DSW's transfer of books and records and other Information pertaining to Retail
Ventures, if any, and DSW's agreement to permit Retail Ventures to obtain
Information existing prior to the IPO Date are made in reliance on Retail
Ventures' and DSW's respective agreements, as set forth in Section 3.5 and this
Section 3.6, to maintain the confidentiality of such Information and to take the
steps provided herein for the preservation of all Privileges that may belong to
or be asserted by Retail Ventures or DSW, as the case may be. The access to
Information, witnesses and individuals being granted pursuant to Section 3.3 and
Section 3.4 and the disclosure to DSW and Retail Ventures of Privileged
Information relating to the DSW Business or the business of Retail Ventures
pursuant to this Agreement shall not be asserted by Retail Ventures or DSW to
constitute, or otherwise deemed, a waiver of any Privilege that has been or may
be asserted under this Section 3.6 or otherwise. Nothing in this Agreement shall
operate to reduce, minimize or condition the rights granted to Retail Ventures
and DSW in, or the obligations imposed upon Retail Ventures and DSW by, this
Section 3.6.

                                       17
<PAGE>

            Section 3.7 MAIL AND OTHER COMMUNICATIONS. After the IPO Date, each
of Retail Ventures and DSW may receive mail, facsimiles, packages and other
communications properly belonging to the other. Accordingly, at all times after
the IPO Date, each of Retail Ventures and DSW authorizes the other to receive
and open all mail, telegrams, packages and other communications received by it
and not unambiguously intended for the other Party or any of the other Party's
officers or directors, and to retain the same to the extent that they relate to
the business of the receiving Party or, to the extent that they do not relate to
the business of the receiving Party, the receiving Party shall promptly deliver
such mail, telegrams, packages or other communications, including, without
limitation, notices of any liens or encumbrances on any asset transferred to DSW
in connection with its separation from Retail Ventures, (or, in case the same
relate to both businesses, copies thereof) to the other Party as provided for in
Section 7.5 hereof. The provisions of this Section 3.7 are not intended to, and
shall not, be deemed to constitute an authorization by either Retail Ventures or
DSW to permit the other to accept service of process on its behalf and neither
Party is or shall be deemed to be the agent of the other for service of process
purposes.

            Section 3.8 EMPLOYMENT MATTERS.

                  (a) For a period of two years following the IPO Date, neither
the Retail Ventures Group nor the DSW Group will, directly or indirectly,
solicit active employees of the other without its consent; PROVIDED that each
Party agrees to give such consent if it believes, in good faith, that consent is
necessary to avoid the resignation of an employee from one Party that the other
Party would wish to employ.

                  (b) All outstanding options to purchase shares of Retail
Ventures and all other Retail Ventures equity awards held by DSW Group employees
at the IPO Date will continue to be outstanding until the earlier of (i) the
date the option or award is exercised or expires under the terms of the award
agreement or (ii) the date the DSW Group employee is deemed to have "terminated"
as defined in the plan under which the award was granted or, if later, the end
of any post-termination exercise period specified in the award agreement or by
the plans' administrative committees.

            Section 3.9 PAYMENT OF EXPENSES. Except as otherwise provided in
this Agreement, the Inter-Company Agreements or any other agreement between the
Parties relating to the IPO or the Distribution, (i) all costs and expenses of
the Parties hereto in connection with the IPO (including costs associated with
drafting this Agreement, the Inter-Company Agreements and the documents relating
to the formation of DSW) shall be paid by DSW; (ii) all costs and expenses of
the Parties hereto in connection with the Distribution shall be paid by DSW; and
(iii) all costs and expenses of the Parties hereto in connection with any matter
not relating to the IPO or the Distribution shall be paid by the Party which
incurs such cost or expense. Notwithstanding the foregoing, DSW and Retail
Ventures shall each be responsible for their own internal fees, costs and
expenses (e.g., salaries of personnel) incurred in connection with the IPO and
the Distribution.

                                       18
<PAGE>

            Section 3.10 DISPUTE RESOLUTION.

                  (a) Any dispute, controversy or claim arising out of or
relating to this Agreement or the Inter-Company Agreements, other than the Tax
Separation Agreement, or the breach, termination or validity thereof ("Dispute")
which arises between the Parties shall first be negotiated between appropriate
senior executives of each Party who shall have the authority to resolve the
matter. Such executives shall meet to attempt in good faith to negotiate a
resolution of the Dispute prior to pursuing other available remedies, within ten
(10) days of receipt by a Party of notice of a Dispute, which date of receipt
shall be referred to herein as the "Dispute Resolution Commencement Date."
Discussions and correspondence relating to trying to resolve such Dispute shall
be treated as confidential information developed for the purpose of settlement
and shall be exempt from discovery or production and shall not be admissible in
any subsequent proceeding between the Parties.

                  (b) If the senior executives are unable to resolve the Dispute
within sixty (60) days from the Dispute Resolution Commencement Date, then, the
Dispute will be submitted to the Board of Directors of each Party.
Representatives of each Board shall meet as soon as practicable to attempt in
good faith to negotiate a resolution of the Dispute.

                  (c) If the representatives of the Boards of Directors are
unable to resolve the Dispute within one hundred twenty (120) days from the
Dispute Resolution Commencement Date, on the request of any Party, the Dispute
will be mediated by a mediator appointed pursuant to the mediation rules of the
American Arbitration Association ("AAA"). Both Parties will share the
administrative costs of the mediation and the mediator's fees and expenses
equally, and each Party shall bear all of its other costs and expenses related
to the mediation, including but not limited to attorney's fees, witness fees,
and travel expenses. The mediation shall take place in Franklin County, Ohio or
in whatever alternative forum on which the Parties may agree.

                  (d) Any Dispute which the Parties cannot resolve through
mediation within forty-five days of the appointment of the mediator, shall at
the request of any Party be submitted to final and binding arbitration under the
then current Commercial Arbitration Rules of the AAA in Franklin County, Ohio.
There shall be three (3) neutral arbitrators of whom Retail Ventures shall
appoint one and DSW shall appoint one within 30 days of the receipt by the
respondent of the demand for arbitration. The two arbitrators so appointed shall
select the chair of the arbitral tribunal within 30 days of the appointment of
the second arbitrator. If any arbitrator is not appointed within the time limit
provided herein, such arbitrator shall be appointed by the AAA by using a list
striking and ranking procedure in accordance with its rules. Any arbitrator
appointed by the AAA shall be a retired judge or a practicing attorney with no
less than fifteen (15) years of experience and an experienced arbitrator. The
prevailing Party in such arbitration shall be entitled to be awarded its
expenses, including its share of administrative and arbitrator fees and expenses
and reasonable attorneys' and other professional fees, incurred in connection
with the arbitration (but excluding any costs and fees associated with prior
negotiation or mediation). The decision of the arbitrators shall

                                       19
<PAGE>

be final and binding on the Parties and may be enforced in any court of
competent jurisdiction.

                  (e) By agreeing to arbitration, the Parties do not intend to
deprive any court of its jurisdiction to issue a pre-arbitral injunction,
pre-arbitral attachment, or other order in aid of arbitration proceedings and
the enforcement of any award. Without prejudice to such provisional remedies as
may be available under the jurisdiction of a court, the arbitral tribunal shall
have full authority to grant provisional remedies or modify or vacate any
temporary or preliminary relief issued by a court, to issue an award for
temporary or permanent injunctive relief (including specific performance) and to
award damages for the failure of any Party to respect the arbitral tribunal's
orders to that effect.

                  (f) Unless otherwise agreed in writing, the Parties will
continue to provide service and honor all other commitments under this Agreement
and each Inter-Company Agreement during the course of dispute resolution
pursuant to the provisions of this Section 3.10 with respect to all matters not
subject to such dispute, controversy or claim.

            Section 3.11 GOVERNMENTAL APPROVALS. To the extent that any of the
transactions contemplated by this Agreement requires any Governmental Approvals,
the Parties will use their best efforts to obtain any such Governmental
Approvals.

            Section 3.12 NO REPRESENTATION OR WARRANTY.

                  (a) Retail Ventures does not, in this Agreement or any other
agreement, instrument or document contemplated by this Agreement, make any
representation as to, warranty of or covenant with respect to:

                        (i) the value of any asset or thing of value
      transferred, or to be transferred, to DSW;

                        (ii) the freedom from encumbrance of any asset or thing
      of value transferred, or to be transferred, to DSW; PROVIDED, HOWEVER,
      that Retail Ventures agrees to notify DSW promptly in the event Retail
      Ventures receives any notice or claim of any encumbrance on or against any
      asset or thing of value transferred, or to be transferred, to DSW;

                        (iii) the absence of defenses or freedom from
      counterclaims with respect to any claim transferred, or to be transferred,
      to DSW; PROVIDED, HOWEVER, that neither Retail Ventures nor its
      Subsidiaries have any counterclaims with respect to any claim transferred,
      or to be transferred, to DSW; or

                                       20
<PAGE>

                        (iv) the legal sufficiency of any assignment, document
      or instrument delivered hereunder to convey title to any asset or thing of
      value upon its execution, delivery and filing.

      Except as may expressly be set forth herein or in any Inter-Company
Agreement, all assets transferred, or to be transferred, to DSW have been, or
shall be, as the case may be, transferred "AS IS, WHERE IS" and DSW shall bear
the economic and legal risk that any conveyance shall prove to be insufficient
to vest in DSW good and marketable title, free and clear of any lien, claim,
equity or other encumbrance.

                  (b) DSW does not, in this Agreement or any other agreement,
instrument or document contemplated by this Agreement, make any representation
as to, warranty of or covenant with respect to:

                        (i) the value of any asset or thing of value
      transferred, or to be transferred, to Retail Ventures:

                        (ii) the freedom from encumbrance of any asset or thing
      of value transferred, or to be transferred, to Retail Ventures; PROVIDED,
      HOWEVER, that DSW agrees to notify Retail Ventures promptly in the event
      DSW receives any notice or claim of any encumbrance on or against any
      asset or thing of value transferred, or to be transferred, to Retail
      Ventures;

                        (iii) the absence of defenses or freedom from
      counterclaims with respect to any claim transferred, or to be transferred,
      to Retail Ventures; PROVIDED, HOWEVER, that neither DSW nor its
      Subsidiaries have any counterclaims with respect to any claim transferred,
      or to be transferred, to Retail Ventures; or

                        (iv) the legal sufficiency of any assignment, document
      or instrument delivered hereunder to convey title to any asset or thing of
      value upon its execution, delivery and filing.

      Except as may expressly be set forth herein or in any Inter-Company
Agreement, all assets transferred, or to be transferred, to Retail Ventures have
been, or shall be, as the case may be, transferred "AS IS, WHERE IS" and Retail
Ventures shall bear the economic and legal risk that any conveyance shall prove
to be insufficient to vest in Retail Ventures good and marketable title, free
and clear of any lien, claim, equity or other encumbrance.

            Section 3.13 COMPLIANCE WITH LEGAL POLICIES

                  (a) For so long as Retail Ventures is providing legal services
under the Shared Services Agreement, DSW shall comply with all policies and
directives identified by Retail Ventures as critical to legal and regulatory
compliance; PROVIDED, HOWEVER, that nothing contained herein shall require
compliance with policies or directives that, in the opinion of counsel to DSW,
do nor comply with then applicable

                                       21
<PAGE>

law. Until the Distribution Date, DSW shall not adopt policies or directives
relating to legal or regulatory compliance that are inconsistent with the
policies and directives identified by of Retail Ventures as critical to legal
and regulatory compliance PROVIDED, HOWEVER, that nothing contained herein shall
prevent adoption of policies or directives that, in the opinion of counsel to
DSW, are necessary or desirable to comply with then applicable law.

                  (b) For so long as Retail Ventures is providing services under
the Shared Services Agreement, it will take reasonable steps to assure that the
employees providing such services comply with all policies and directives
identified by DSW as critical to legal and regulatory compliance that are
applicable to such employees.

            Section 3.14 DEBT REORGANIZATION RELATED DOCUMENTS. For so long as
any of the Warrants are outstanding, DSW will not, except with the prior written
consent of Retail Ventures, take any action that would: (a) result in an
adjustment of the DSW Stock Exercise Amount or the DSW Stock Purchase Price (as
defined in the Warrants) or (b) reduce Retail Ventures' ownership below
fifty-five percent (55%) of the value of the issued and outstanding Common
Shares.

            Section 3.15 NORTHLAND. Retail Ventures is a party to a certain
lease agreement dated as of September 30, 2003 (but effective February 1, 2004),
between Northland Associates LLC, as landlord, and Retail Ventures, as tenant
(the "Lease") and to a certain sublease dated April 1, 2005, between Retail
Ventures as sublessor and the State of Ohio acting by and through the Department
of Administrative Services as sublessee (the "Sublease"). Both the Lease and
Sublease relate to property located at 1649 Morse Road, Columbus, Ohio
("Northland"), which, at one time, was intended to serve as new corporate
offices for DSW. Retail Ventures expended significant sums at Northland,
primarily in anticipation of its use by DSW, which sums are capitalized on the
books and records of Retail Ventures and will not be transferred to DSW. Retail
Ventures is and will remain liable for each and every obligation of the tenant
under the Lease and the sublessor under the Sublease and such obligations are
not DSW Liabilities. The foregoing notwithstanding, for so long as the Lease is
in effect:

                  (a) Retail Ventures shall prepare a monthly and annual
accounting of the revenues and expenses associated with Northland, the Lease and
the Sublease (the "Northland Accounting"), on the basis of generally accepted
accounting principles consistent with past Retail Ventures' practices; and the
net profit or loss so determined will be allocated two-thirds (2/3) to DSW and
one third (1/3) to Retail Ventures.

                  (b) Not later than ten (10) days after the end of each month
and ninety (90) days after the end of each fiscal year, Retail Ventures will
deliver a copy of the Northland Accounting to DSW, together with payment of an
amount equal to the profit allocated to DSW or an invoice for reimbursement of
an amount equal to the loss allocated to DSW, as the case may be. The fiscal
year end Northland Accounting will reflect monthly settlements during the
preceding accounting periods.

                                       22
<PAGE>

                  (c) The foregoing notwithstanding, Retail Ventures may, at its
option, set off an amount equal to the profit or loss allocated to DSW against
any amounts owed to Retail Ventures by DSW or to DSW by Retail Ventures, as the
case may be, under any of the Inter-Company Agreements.

                  (d) The provisions of the second sentence of Section 3.4(g)
hereof shall continue to apply to the extent necessary for DSW to conduct
reasonable audits of the Northland Accounting.

            Section 3.16 GUARANTEES. Each Party agrees that it will not renew or
extend any lease, contract or agreement guaranteed by the other party without
the consent of the guaranteeing Party.

            Section 3.17 RUN-OFF OF ACCOUNTS. The Parties recognize that certain
accrued expenses, accounts payable and other Liabilities reflected on the DSW
Balance Sheet that were incurred in the ordinary course of business prior to the
IPO will continue to be billed to Retail Ventures after the IPO Date. Retail
Ventures will pay all such DSW Liabilities in a manner substantially similar to
and consistent with the payment practices used prior to the Offering Date and
will invoice or notify DSW, on a weekly basis in a manner substantially similar
to and consistent with the billing practices used prior to the Offering Date
(except as otherwise agreed), of the amounts so paid. DSW agrees to promptly
reimburse Retail Ventures for all such payments in a manner substantially
similar to and consistent with the payment practices used prior to the Offering
Date.

                                   ARTICLE IV
                               REGISTRATION RIGHTS

            Section 4.1 DEMAND REGISTRATION.

                  (a) The Holders shall have the right after the IPO Date to
request in writing (a "Request") (which request shall specify the Registrable
Securities intended to be disposed of by such Holders and the intended method of
distribution thereof, including in a Rule 415 Offering, if DSW is then eligible
to register such Registrable Securities on Form S-3 (or a successor form) for
such offering) that DSW register such portion of such Holders' Registrable
Securities as shall be specified in the Request (a "Demand Registration") by
filing with the Commission, as soon as practicable thereafter, but not later
than the 30th day (or the 45th day if the applicable registration form is other
than Form S-3) after the receipt of such a Request by DSW, a registration
statement (a "Demand Registration Statement") covering such Registrable
Securities, and DSW shall use its best efforts to have such Demand Registration
Statement declared effective by the Commission as soon as practicable
thereafter, but in no event later than the 75th day (or the 90th day if the
applicable registration form is other than Form S-3) after the receipt of such a
Request, and to keep such Demand Registration Statement Continuously Effective
for a period of at least twenty-four (24) months, in the case of a Rule 415
Offering, or, in

                                       23
<PAGE>

all other cases, for a period of at least 180 days following the date on which
such Demand Registration Statement is declared effective (or for such shorter
period which will terminate when all of the Registrable Securities covered by
such Demand Registration Statement shall have been sold pursuant thereto),
including, if necessary, by filing with the Commission a post-effective
amendment or a supplement to the Demand Registration Statement or the related
prospectus or any document incorporated therein by reference or by filing any
other required document or otherwise supplementing or amending the Demand
Registration Statement, if required by the rules, regulations or instructions
applicable to the registration form used by DSW for such Demand Registration
Statement or by the Securities Act, the Exchange Act, any state securities or
blue sky laws, or any rules and regulations thereunder; PROVIDED that such
period during which the Demand Registration Statement shall remain Continuously
Effective shall, in the case of an Underwritten Offering, be extended for such
period (if any) as the underwriters shall reasonably require, including to
satisfy, in the judgment of counsel to the underwriters, any prospectus delivery
requirements imposed by applicable law.

                  (b) DSW shall not be obligated to effect more than one (1)
Demand Registration in any calendar year. For purposes of the preceding
sentence, a Demand Registration shall not be deemed to have been effected (and,
therefore, not requested for purposes of paragraph (a) above), (i) unless a
Demand Registration Statement with respect thereto has become effective, (ii) if
after such Demand Registration Statement has become effective, the offer, sale
or distribution of Registrable Securities thereunder is prevented by any stop
order, injunction or other order or requirement of the Commission or other
governmental agency or court for any reason not attributable to any Holder and
such effect is not thereafter eliminated or (iii) if the conditions to closing
specified in the purchase agreement or underwriting agreement entered into in
connection with such registration are not satisfied or waived other than by
reason of a failure on the part of any Holder. If DSW shall have complied with
its obligations under ARTICLE IV, a right to a Demand Registration pursuant to
this Section 4.1 shall be deemed to have been satisfied upon the earlier of (x)
the date as of which all of the Registrable Securities included therein shall
have been sold to the underwriters or distributed pursuant to the Demand
Registration Statement and (y) the date as of which such Demand Registration
shall have been Continuously Effective for a period of at least twenty-four (24)
months, in the case of a Rule 415 Offering, or, in all other cases, for a period
of at least 180 days following the effectiveness of such Demand Registration
Statement.

                  (c) Any request made pursuant to this Section 4.1 shall be
addressed to the attention of the secretary of DSW, and shall specify (i) the
number of Registrable Securities to be registered (which shall be not less than
the lesser of (x) 5% of the total number of Registrable Securities outstanding
or (y) the remaining balance of the Registrable Securities then held by the
Holders.

                  (d) DSW may not include in a Demand Registration pursuant to
Section 4.1 hereof shares of DSW Capital Stock for the account of DSW or any
subsidiary of DSW, but, if and to the extent required by a contractual
obligation, may, subject to compliance with Section 4.1(e), include shares of
DSW Capital Stock for the

                                       24
<PAGE>

account of any other Person who holds shares of DSW Capital Stock entitled to be
included therein; PROVIDED, HOWEVER, that if the Underwriters' Representative of
any offering described in this Section 4.1 shall have informed DSW in writing
that in its judgment there is a Maximum Number of shares of DSW Capital Stock
that all Holders and any other Persons desiring to participate in such
Registration may include in such offering, then DSW shall include in such Demand
Registration all Registrable Securities requested to be included in such
registration by the Holders together with up to such additional number of shares
of DSW Capital Stock that any other Persons entitled to participate in such
registration desire to include in such registration up to the Maximum Number
that the Underwriters' Representative has informed DSW may be included in such
registration without materially and adversely affecting the success or pricing
of such offering; PROVIDED that the number of shares of DSW Capital Stock to be
offered for the account of all such other Persons participating in such
registration shall be reduced in a manner determined by DSW in its sole
discretion.

                  (e) No Holder may participate in any Underwritten Offering
under Section 4.1 hereof and no other Person shall be permitted to participate
in any such offering pursuant to Section 4.1 hereof unless it completes and
executes all customary questionnaires, powers of attorney, custody agreements,
underwriting agreements and other customary documents required under the
customary terms of such underwriting arrangements. In connection with any
Underwritten Offering under Section 4.1 hereof, each participating Holder and
DSW and, except in the case of a Rule 415 Offering hereof, each other Person
shall be a party to the underwriting agreement with the underwriters and may be
required to make certain customary representations and warranties and provide
certain customary indemnifications for the benefits of the underwriters;
PROVIDED that the Holders shall not be required to make representations and
warranties with respect to DSW or their business and operations and shall not be
required to agree to any indemnity or contribution provisions less favorable to
them than as are set forth herein.

            Section 4.2 PIGGYBACK REGISTRATION.

                  (a) In the event that DSW at any time after the IPO Date
proposes to register any of its DSW Capital Stock, any other of its equity
securities or securities convertible into or exchangeable for its equity
securities (collectively, including DSW Capital Stock, "Other Securities") under
the Securities Act, either in connection with a primary offering for cash for
the account of DSW, a secondary offering or a combined primary and secondary
offering, DSW will each time it intends to effect such a registration, give
written notice (a "Company Notice") to all Holders of Registrable Securities at
least ten (10) business days prior to the initial filing of a registration
statement with the Commission pertaining thereto, informing such Holders of its
intent to file such registration statement and of the Holders' right to request
the registration of the Registrable Securities held by the Holders. Upon the
written request of the Holders made within seven (7) business days after any
such Company Notice is given (which request shall specify the Registrable
Securities intended to be disposed of by such Holder and, unless (i) the
Registrable Securities intended to be disposed of are Class A Common Shares and
(ii) the applicable registration is intended to effect a primary

                                       25
<PAGE>

offering of Class A common shares for cash for the account of DSW, the intended
distribution thereof), DSW will use its best efforts to effect the registration
under the Securities Act of all Registrable Securities which DSW has been so
requested to register by the Holders to the extent required to permit the
disposition (in accordance with the intended methods of distribution thereof or,
in the case of a registration which is intended to effect a primary offering for
cash for the account of DSW, in accordance with DSW's intended method of
distribution) of the Registrable Securities so requested to be registered,
including, if necessary, by filing with the Commission a post-effective
amendment or a supplement to the registration statement filed by DSW or the
related prospectus or any document incorporated therein by reference or by
filing any other required document or otherwise supplementing or amending the
registration statement filed by DSW, if required by the rules, regulations or
instructions applicable to the registration form used by DSW for such
registration statement or by the Securities Act, any state securities or blue
sky laws, or any rules and regulations thereunder; PROVIDED, HOWEVER, that if,
at any time after giving written notice of its intention to register any Other
Securities and prior to the Effective Date of the registration statement filed
in connection with such registration, DSW shall determine for any reason not to
register or to delay such registration of the Other Securities, DSW shall give
written notice of such determination to each Holder of Registrable Securities
and, thereupon, (i) in the case of a determination not to register, DSW shall be
relieved of its obligation to register any Registrable Securities in connection
with such registration (but not from its obligation to pay the Registration
Expenses incurred in connection therewith or from DSW's obligations with respect
to any subsequent registration) and (ii) in the case of a determination to delay
such registration, DSW shall be permitted to delay registration of any
Registrable Securities requested to be included in such registration statement
for the same period as the delay in registering such Other Securities.

                  (b) If, in connection with a Registration Statement pursuant
to this Section 4.2, the Underwriters' Representative of the offering registered
thereon shall inform DSW in writing that in its opinion there is a Maximum
Number of shares of DSW Capital Stock that may be included therein and if such
Registration Statement relates to an offering initiated by DSW of Common Shares
being offered for the account of DSW, DSW shall include in such registration:
(i) first, the number of shares DSW proposes to offer ("Company Securities"),
(ii) second, up to the full number of Registrable Securities held by Holders of
Registrable Securities that are requested to be included in such registration
(Registrable Securities that are so held being sometimes referred to herein as
"Retail Ventures Securities") to the extent necessary to reduce the respective
total number of shares of DSW Capital Stock requested to be included in such
offering to the Maximum Number recommended by such Underwriters' Representative
(and in the event that such Underwriters' Representative advises that less than
all of such Retail Ventures Securities may be included in such offering, the
Holders of Registrable Securities may withdraw their request for registration of
their Registrable Securities under this Section 4.2 and not less than 90 days
subsequent to the Effective Date of the registration statement for the
registration of such Other Securities request that such registration be effected
as a registration under Section 4.1 to the extent permitted thereunder) and
(iii) third, up to the full number of the Other Securities (other than Company
Securities), if any, in excess of the number of Company Securities and Retail
Ventures Securities to be

                                       26
<PAGE>

sold in such offering to the extent necessary to reduce the respective total
number of shares of DSW Capital Stock requested to be included in such offering
to the Maximum Number recommended by such Underwriters' Representative (and, if
such number is less than the full number of such Other Securities, such number
shall be allocated pro rata among the holders of such Other Securities (other
than Company Securities) on the basis of the number of securities requested to
be included therein by each such holder).

                  (c) If, in connection with a Registration Statement pursuant
to this Section 4.2, the Underwriters' Representative of the offering registered
thereon shall inform DSW in writing that in its opinion there is a Maximum
Number of shares of DSW Capital Stock that may be included therein and if such
Registration Statement relates to an offering initiated by any Person other than
DSW (the "Other Holders"), DSW shall include in such registration the number of
securities (including Registrable Securities) that such underwriters advise can
be so sold without adversely affecting such offering, allocated pro rata among
the Other Holders and the Holders of Registrable Securities on the basis of the
number of securities (including Registrable Securities) requested to be included
therein by each Other Holder and Holder of Registrable Securities.

                  (d) No Holder may participate in any Underwritten Offering
under Section 5.2 hereof and no other Person shall be permitted to participate
in any such offering pursuant to Section 5.2 hereof unless it completes and
executes all customary questionnaires, powers of attorney, custody agreements,
underwriting agreements and other customary documents required under the
customary terms of such underwriting arrangements. In connection with any
Underwritten Offering under Section 5.2 hereof, each participating Holder and
DSW and each other Person shall be a party to the underwriting agreement with
the underwriters and may be required to make certain customary representations
and warranties and provide certain customary indemnifications for the benefits
of the underwriters; PROVIDED that the Holders shall not be required to make
representations and warranties with respect to DSW or their business and
operations and shall not be required to agree to any indemnity or contribution
provisions less favorable to them than as are set forth herein.

                  (e) DSW shall not be required to effect any registration of
Registrable Securities under this Section 4.2 incidental to the registration of
any of its securities in connection with DSW's issuance of registered shares of
DSW Capital Stock in mergers, acquisitions, reorganizations, exchange offers,
subscription offers, dividend reinvestment plans or stock option or other
executive or employee benefit or compensation plans.

                  (f) The registration rights granted pursuant to the provisions
of this Section 4.2 shall be in addition to the registration rights granted
pursuant to Section 4.1. No registration of Registrable Securities effected
under this Section 4.2 shall relieve DSW of its obligation to effect a
registration of Registrable Securities pursuant to Section 4.1.

            Section 4.3 EXPENSES. Except as provided herein, DSW shall pay all
Registration Expenses in connection with all registrations of Registrable
Securities.

                                       27
<PAGE>

Notwithstanding the foregoing, each Holder of Registrable Securities and DSW
shall be responsible for its own internal administrative and similar costs,
which shall not constitute Registration Expenses.

            Section 4.4 BLACKOUT PERIOD. DSW shall be entitled to elect that a
Registration Statement not be usable, or that the filing thereof be delayed
beyond the time otherwise required, for a reasonable period of time (a "Blackout
Period"), if DSW determines in good faith that the registration and distribution
of Registrable Securities (or the use or filing of the IPO Registration
Statement or related prospectus) would interfere with any pending material
financing, merger, acquisition, consolidation, recapitalization, corporate
reorganization or any other material corporate development involving DSW or any
of its Subsidiaries or would require premature disclosure thereof that would be
detrimental to DSW and promptly gives the Holders of Registrable Securities
written notice of such determination, and if requested by Holders and to the
extent such action would not violate applicable law, DSW will promptly deliver
to the Holders a general statement of the reasons for such postponement or
restriction on use and to the extent practicable an approximation of the
anticipated delay.

            Section 4.5 SELECTION OF UNDERWRITERS. If any Rule 415 Offering or
any offering pursuant to a Demand Registration Statement is an Underwritten
Offering, Retail Ventures will select a managing underwriter or underwriters to
administer the offering, which managing underwriter shall be reasonably
satisfactory to DSW. DSW shall have the right to select a managing underwriter
or underwriters to administer any Underwritten Offering contemplated by Section
5.2.

            Section 4.6 OBLIGATIONS OF DSW. If and whenever DSW is required to
effect the registration of any Registrable Securities under the Securities Act
as provided in this ARTICLE IV, DSW shall as promptly as practicable:

                  (a) prepare, file and use its best efforts to cause to become
effective a registration statement under the Securities Act relating to the
Registrable Securities to be offered;

                  (b) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective and
to comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities until the earlier of (i) such time as
all of such Registrable Securities have been disposed of in accordance with the
intended methods of disposition set forth in such registration statement and
(ii) the expiration of one hundred eighty (180) days after such registration
statement becomes effective; PROVIDED, that such one hundred eighty (180) day
period shall be extended for such number of days that equals the number of days
elapsing from (x) the date the written notice contemplated by paragraph (f)
below is given by DSW to (y) the date on which DSW delivers to Holders of
Registrable Securities the supplement or amendment contemplated by paragraph (f)
below;

                                       28
<PAGE>

                  (c) furnish to Holders of Registrable Securities and to any
underwriter of such Registrable Securities such number of conformed copies of
such registration statement and of each such amendment and supplement thereto
(in each case including all exhibits), such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus
and any summary prospectus), in conformity with the requirements of the
Securities Act, such documents incorporated by reference in such registration
statement or prospectus, and such other documents, as Holders of Registrable
Securities or such underwriter may reasonably request, and a copy of any and all
transmittal letters or other correspondence to or received from the Commission
or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to
such offering;

                  (d) use its best efforts to register or qualify all
Registrable Securities covered by such registration statement under the
securities or blue sky laws of such jurisdictions as the Holders of such
Registrable Securities or any underwriter to such Registrable Securities shall
request, and use its best efforts to obtain all appropriate registrations,
permits and consents in connection therewith, and do any and all other acts and
things which may be necessary or advisable to enable the Holders of Registrable
Securities or any such underwriter to consummate the disposition in such
jurisdictions of its Registrable Securities covered by such registration
statement; PROVIDED, that DSW shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any such
jurisdiction wherein it is not so qualified or to consent to general service of
process in any such jurisdiction;

                  (e) (i) use its best efforts to furnish to each Holder of
Registrable Securities included in such registration (each, a "Selling Holder")
and to any underwriter of such Registrable Securities an opinion of counsel for
DSW addressed to each Selling Holder and dated the date of the closing under the
underwriting agreement (if any) (or if such offering is not underwritten, dated
the Effective Date of the registration statement) and (ii) use its best efforts
to furnish to each Selling Holder a "cold comfort" letter addressed to each
Selling Holder and signed by the independent public accountants who have audited
the financial statements of DSW included in such registration statement, in each
such case covering substantially the same matters with respect to such
registration statement (and the prospectus included therein) as are customarily
covered in opinions of issuer's counsel and in accountants' letters delivered to
underwriters in underwritten public offerings of securities and such other
matters as the Selling Holders may reasonably request and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements;

                  (f) as promptly as practicable, notify the Selling Holders in
writing (i) at any time when a prospectus relating to a registration made
pursuant to Section 4.1 or Section 4.2 contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading due to the occurrence of any event and (ii)
of any request by the Commission or any other regulatory body or other body
having jurisdiction for any amendment of or supplement to

                                       29
<PAGE>

any registration statement or other document relating to such offering, and in
either such case, at the request of the Selling Holders prepare and furnish to
the Selling Holders a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they are made, not
misleading;

                  (g) if reasonably requested by the lead or managing
underwriters, use its best efforts to list all such Registrable Securities
covered by such registration on each securities exchange and automated
inter-dealer quotation system on which a class of common equity securities of
DSW is then listed;

                  (h) to the extent reasonably requested by the lead or managing
underwriters, send appropriate officers of DSW to attend any "road shows"
scheduled in connection with any such registration, with all out-of-pocket costs
and expense incurred by DSW or such officers in connection with such attendance
to be paid by DSW;

                  (i) furnish or cause to be furnished for delivery in
connection with the closing of any offering of Registrable Securities pursuant
to a registration effected pursuant to Section 4.1 or Section 4.2 unlegended
certificates representing ownership of the Registrable Securities being sold in
such denominations as shall be requested by the Selling Holders or the
underwriters; and

                  (j) use its best efforts to take all other reasonable and
customary steps typically taken by issuers to effect the registration and
disposition of such Registrable Securities as contemplated hereby.

            Section 4.7 OBLIGATIONS OF SELLING HOLDERS. Each Selling Holder
agrees by having its securities treated as Registrable Securities hereunder
that, upon receipt of written notice from DSW specifying that the prospectus
relating to a registration made pursuant to Section 4.1 or Section 4.2 contains
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading due to the
occurrence of any event, such Selling Holder will forthwith discontinue
disposition of Registrable Securities until such Selling Holder is advised by
DSW that the use of the prospectus may be resumed and is furnished with a
supplemented or amended prospectus as contemplated by Section 4.6(f) hereof,
and, if so directed by DSW, such Selling Holder will deliver to DSW all copies
of the prospectus covering such Registrable Securities then in such Selling
Holder's possession at the time of receipt of such notice.

            Section 4.8 UNDERWRITING; DUE DILIGENCE.

                  (a) If requested by the underwriters for any Underwritten
Offering of Registrable Securities pursuant to a registration requested under
this ARTICLE IV, DSW shall enter into an underwriting agreement in a form
reasonably

                                       30
<PAGE>

satisfactory to DSW with such underwriters for such offering, which agreement
will contain such representations and warranties by DSW and such other terms and
provisions as are customarily contained in underwriting agreements with respect
to secondary distributions, including, without limitation, indemnification and
contribution provisions substantially to the effect and to the extent provided
in Section 4.9, and agreements as to the provision of opinions of counsel and
accountants' letters to the effect and to the extent provided in Section 4.6(e).
The Selling Holders on whose behalf the Registrable Securities are to be
distributed by such underwriters shall be a party to any such underwriting
agreement and the representations and warranties by, and the other agreements on
the part of, DSW to and for the benefit of such underwriters, shall also be made
to and for the benefit of such Selling Holders. Such underwriting agreement
shall also contain such representations and warranties by such Selling Holders
and such other terms and provisions as are customarily contained in underwriting
agreements with respect to secondary distributions, including, without
limitation, indemnification and contribution provisions substantially to the
effect and to the extent provided in Section 4.9.

                  (b) In connection with the preparation and filing of each
registration statement registering Registrable Securities under the Securities
Act pursuant to this ARTICLE IV, DSW shall give the Holders of such Registrable
Securities and the underwriters, if any, and their respective counsel and
accountants, such reasonable and customary access to its books and records and
such opportunities to discuss the business of DSW with its officers and the
independent public accountants who have certified the financial statements of
DSW as shall be necessary, in the opinion of such Holders and such underwriters
or their respective counsel, to conduct a reasonable investigation within the
meaning of the Securities Act; PROVIDED, that such Holders and the underwriters
and their respective counsel and accountants shall use their reasonable best
efforts to coordinate any such investigation of the books and records of DSW and
any such discussions with DSW's officers and accountants so that all such
investigations occur at the same time and all such discussions occur at the same
time.

            Section 4.9 INDEMNIFICATION AND CONTRIBUTION.

                  (a) In the case of each offering of Registrable Securities
made pursuant to this ARTICLE IV, DSW agrees to indemnify and hold harmless, to
the extent permitted by law, each Selling Holder, each underwriter of
Registrable Securities so offered and each Person, if any, who controls any of
the foregoing Persons within the meaning of the Securities Act and the officers,
directors, affiliates, employees and agents of each of the foregoing, against
any and all losses, liabilities, costs (including reasonable attorney's fees and
disbursements), claims and damages, joint or several, to which they or any of
them may become subject, under the Securities Act or otherwise, including any
amount paid in settlement of any litigation commenced or threatened, insofar as
such losses, liabilities, costs, claims and damages (or actions or proceedings
in respect thereof, whether or not such indemnified Person is a party thereto)
arise out of or are based upon any untrue statement by DSW or alleged untrue
statement by DSW of a material fact contained in the registration statement (or
in any preliminary or final prospectus included therein) or in any offering
memorandum or other offering document relating to the

                                       31
<PAGE>

offering and sale of such Registrable Securities prepared by DSW or at its
direction, or any amendment thereof or supplement thereto, or in any document
incorporated by reference therein, or any omission by DSW or alleged omission by
DSW to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading; PROVIDED, that DSW shall not be
liable to any Person in any such case to the extent that any such loss,
liability, cost, claim or damage arises out of or relates to any untrue
statement or alleged untrue statement, or any omission, if such statement or
omission shall have been made in reliance upon and in conformity with
information relating to a Selling Holder or another holder of securities
included in such registration statement furnished to DSW by or on behalf of such
Selling Holder or underwriter, as the case may be, specifically for use in the
registration statement (or in any preliminary or final prospectus included
therein), offering memorandum or other offering document, or any amendment
thereof or supplement thereto. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of any Selling
Holder or any other holder and shall survive the transfer of such securities.
The foregoing indemnity agreement is in addition to any liability that DSW may
otherwise have to each Selling Holder, or other holder or underwriter of the
Registrable Securities or any controlling person of the foregoing and the
officers, directors, affiliates, employees and agents of each of the foregoing;
PROVIDED, further, that, in the case of an offering with respect to which a
Selling Holder has designated the lead or managing underwriters (or a Selling
Holder is offering Registrable Securities directly, without an underwriter),
this indemnity does not apply to any loss, liability, cost, claim or damage
arising out of or relating to any untrue statement or alleged untrue statement
or omission or alleged omission in any preliminary prospectus or offering
memorandum if a copy of a final prospectus or offering memorandum was not sent
or given by or on behalf of any underwriter (or such Selling Holder or other
holder, as the case may be) to such Person asserting such loss, liability, cost,
claim or damage at or prior to the written confirmation of the sale of the
Registrable Securities as required by the Securities Act and such untrue
statement or omission had been corrected in such final prospectus or offering
memorandum.

                  (b) In the case of each offering made pursuant to this
Agreement, each Selling Holder, by exercising its registration rights hereunder,
agrees to indemnify and hold harmless, and to cause each underwriter of
Registrable Securities included in such offering (in the same manner and to the
same extent as set forth in Section 4.9(a)) to agree to indemnify and hold
harmless to the extent permitted by law, DSW, each other underwriter who
participates in such offering, each other Selling Holder or other holder with
securities included in such offering and in the case of an underwriter, such
Selling Holder or other holder, and each Person, if any, who controls any of the
foregoing within the meaning of the Securities Act and the officers, directors,
affiliates, employees and agents of each of the foregoing, against any and all
losses, liabilities, costs, claims and damages to which they or any of them may
become subject, under the Securities Act or otherwise, including any amount paid
in settlement of any litigation commenced or threatened, insofar as such losses,
liabilities, costs, claims and damages (or actions or proceedings in respect
thereof, whether or not such indemnified Person is a party thereto) arise out of
or are based upon any untrue statement or alleged untrue statement by such
Selling Holder or underwriter, as the case may be, of a material fact contained
in the

                                       32
<PAGE>

registration statement (or in any preliminary or final prospectus included
therein) or in any offering memorandum or other offering document relating to
the offering and sale of such Registrable Securities prepared by DSW or at its
direction, or any amendment thereof or supplement thereto, or any omission by
such Selling Holder or underwriter, as the case may be, or alleged omission by
such Selling Holder or underwriter, as the case may be, of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, but in each case only to the extent that such untrue statement of a
material fact is contained in, or such material fact is omitted from,
information relating to such Selling Holder or underwriter, as the case may be,
furnished to DSW by or on behalf of such Selling Holder or underwriter, as the
case may be, specifically for use in such registration statement (or in any
preliminary or final prospectus included therein), offering memorandum or other
offering document. The foregoing indemnity is in addition to any liability which
such Selling Holder or underwriter, as the case may be, may otherwise have to
DSW, or controlling persons and the officers, directors, affiliates, employees,
and agents of each of the foregoing; PROVIDED, that, in the case of an offering
made pursuant to this Agreement with respect to which DSW has designated the
lead or managing underwriters (or DSW is offering securities directly, without
an underwriter), this indemnity does not apply to any loss, liability, cost,
claim, or damage arising out of or based upon any untrue statement or alleged
untrue statement or omission or alleged omission in any preliminary prospectus
or offering memorandum if a copy of a final prospectus or offering memorandum
was not sent or given by or on behalf of any underwriter (or DSW, as the case
may be) to such Person asserting such loss, liability, cost, claim or damage at
or prior to the written confirmation of the sale of the Registrable Securities
as required by the Securities Act and such untrue statement or omission had been
corrected in such final prospectus or offering memorandum.

                  (c) Each party indemnified under paragraph (a) or (b) above
shall, promptly after receipt of notice of a claim or action against such
indemnified party in respect of which indemnity may be sought hereunder, notify
the indemnifying party in writing of the claim or action; PROVIDED, that the
failure to notify the indemnifying party shall not relieve it from any liability
that it may have to an indemnified party on account of the indemnity agreement
contained in paragraph (a) or (b) above except to the extent that the
indemnifying party was actually prejudiced by such failure, and in no event
shall such failure relieve the indemnifying party from any other liability that
it may have to such indemnified party. If any such claim or action shall be
brought against an indemnified party, and it shall have notified the
indemnifying party thereof, unless in such indemnified party's reasonable
judgment a conflict of interest between such indemnified party and indemnifying
parties may exist in respect of such claim, the indemnifying party shall be
entitled to participate therein, and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 4.9 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation. Any indemnifying party
against whom indemnity may be sought under this Section 4.9

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<PAGE>

shall not be liable to indemnify an indemnified party if such indemnified party
settles such claim or action without the consent of the indemnifying party. The
indemnifying party may not agree to any settlement of any such claim or action,
other than solely for monetary damages for which the indemnifying party shall be
responsible hereunder, the result of which any remedy or relief shall be applied
to or against the indemnified party, without the prior written consent of the
indemnified party, which consent shall not be unreasonably withheld. In any
action hereunder as to which the indemnifying party has assumed the defense
thereof with counsel satisfactory to the indemnified party, the indemnified
party shall continue to be entitled to participate in the defense thereof, with
counsel of its own choice, but the indemnifying party shall not be obligated
hereunder to reimburse the indemnified party for the costs thereof.

                  (d) If the indemnification provided for in this Section 4.9
shall for any reason be unavailable (other than in accordance with its terms) to
an indemnified party in respect of any loss, liability, cost, claim or damage
referred to therein, then each indemnifying party shall, in lieu of indemnifying
such indemnified party, contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, cost, claim or damage (i)
as between DSW and the Selling Holders on the one hand and the underwriters on
the other, in such proportion as shall be appropriate to reflect the relative
benefits received by DSW and the Selling Holders on the one hand and the
underwriters on the other hand or, if such allocation is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits but also the relative fault of DSW and the Selling Holders on
the one hand and the underwriters on the other with respect to the statements or
omissions which resulted in such loss, liability, cost, claim or damage as well
as any other relevant equitable considerations and (ii) as between DSW on the
one hand and each Selling Holder on the other, in such proportion as is
appropriate to reflect the relative fault of DSW and of each Selling Holder in
connection with such statements or omissions as well as any other relevant
equitable considerations. The relative benefits received by DSW and the Selling
Holders on the one hand and the underwriters on the other shall be deemed to be
in the same proportion as the total proceeds from the offering (net of
underwriting discounts and commissions but before deducting expenses) received
by DSW and the Selling Holders bear to the total underwriting discounts and
commissions received by the underwriters, in each case as set forth in the table
on the cover page of the prospectus. The relative fault of DSW and the Selling
Holders on the one hand and of the underwriters on the other shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by DSW and the Selling Holders or by the underwriters. The
relative fault of DSW on the one hand and of each Selling Holder on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by such party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission, but not by reference to any
indemnified party's stock ownership in DSW. The amount paid or payable by an
indemnified party as a result of the loss, cost, claim, damage or liability, or
action in respect thereof, referred to above in this paragraph (d) shall be
deemed to include, for purposes of this paragraph (d), any legal or other
expenses reasonably incurred by such

                                       34
<PAGE>

indemnified party in connection with investigating or defending any such action
or claim. DSW and the Selling Holders agree that it would not be just and
equitable if contribution pursuant to this Section 4.9 were determined by pro
rata allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this paragraph. Notwithstanding any
other provision of this Section 4.9, no Selling Holder shall be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities of such Selling Holder were offered to the public
exceeds the amount of any damages which such Selling Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

                  (e) Indemnification and contribution similar to that specified
in the preceding paragraphs of this Section 4.9 (with appropriate modifications)
shall be given by DSW, the Selling Holders and any underwriters with respect to
any required registration or other qualification of securities under any state
law or regulation or governmental authority.

                  (f) The obligations of the parties under this Section 4.9
shall be in addition to any liability which any party may otherwise have to any
other party.

            Section 4.10 RULE 144 AND FORM S-3. Commencing ninety (90) days
after the IPO Date, DSW shall use its best efforts to ensure that the conditions
to the availability of Rule 144 set forth in paragraph (c) thereof shall be
satisfied. Upon the request of any Holder of Registrable Securities, DSW will
deliver to such Holder a written statement as to whether it has complied with
such requirements. DSW further agrees to use its best efforts to cause all
conditions to the availability of Form S-3 (or any successor form) under the
Securities Act for the filing of registration statements under this Agreement to
be met as soon as practicable after the IPO Date.

            Section 4.11 HOLDBACK AGREEMENT.

                  (a) If so requested by the Underwriters' Representative in
connection with an offering of securities covered by a registration statement
filed by DSW, whether or not Registrable Securities of the Holders are included
therein, each Holder shall agree not to effect any sale or distribution of the
Shares, including any sale under Rule 144, without the prior written consent of
the Underwriters' Representative (otherwise than through the registered public
offering then being made), within seven (7) days prior to or ninety (90) days
(or such lesser period as the Underwriters' Representative may permit) after the
Effective Date of the registration statement (or the commencement of the
offering to the public of such Registrable Securities in the case of Rule 415
Offerings). The Holders shall not be subject to the restrictions set forth in
this Section 4.11 for longer than ninety-seven (97) days during any 12-month
period and a Holder shall no longer be subject to such restrictions at such time
as such Holder shall own less than 10% of the then-outstanding Registrable
Securities on a fully-diluted basis.

                                       35
<PAGE>

                  (b) If so requested by the Underwriters' Representative in
connection with an offering of any Registrable Securities, DSW shall agree not
to effect any sale or distribution of DSW Capital Stock, without the prior
written consent of the Underwriters' Representative (otherwise than through the
registered public offering then being made or in connection with any acquisition
or business combination transaction and other than in connection with stock
options and employee benefit plans and compensation), within seven (7) days
prior to or ninety (90) days (or such lesser period as the Underwriters'
Representative may permit) after the Effective Date of the registration
statement (or the commencement of the offering to the public of such Registrable
Securities in the case of Rule 415 Offerings) and shall use its best efforts to
obtain and enforce similar agreements from any other Persons if requested by the
Underwriters' Representative; PROVIDED that DSW or such Persons shall not be
subject to the restrictions set forth in this Section 4.11 for longer than
ninety-seven (97) days during any twelve (12) month period.

                  (c) Notwithstanding anything else in this Section 4.11 to the
contrary, no Holder shall be precluded from distributing to any or all of its
stockholders any or all of the Registrable Securities.

            Section 4.12 TERM. This ARTICLE IV shall remain in effect until all
Registrable Securities held by Holders have been transferred by them to other
Persons.

                                   ARTICLE V
                        MUTUAL RELEASES; INDEMNIFICATION

            Section 5.1 RELEASE OF PRE-IPO DATE CLAIMS.

                  (a) DSW RELEASE. Except as provided in Section 5.1(c), as of
the IPO Date, DSW does hereby, for itself and as agent for each member of the
DSW Group, remise, release and forever discharge the Retail Ventures Indemnitees
from any and all Liabilities whatsoever, whether at law or in equity (including
any right of contribution), whether arising under any contract or agreement, by
operation of law or otherwise, existing or arising from any past acts or events
occurring or failing to occur or alleged to have occurred or to have failed to
occur or any conditions existing or alleged to have existed on or before the IPO
Date, including in connection with the transactions and all other activities to
implement the IPO.

                  (b) RETAIL VENTURES RELEASE. Except as provided in Section
5.1(c), as of the IPO Date, Retail Ventures does hereby, for itself and as agent
for each member of the Retail Ventures Group, remise, release and forever
discharge the DSW Indemnitees from any and all Liabilities whatsoever, whether
at law or in equity (including any right of contribution), whether arising under
any contract or agreement, by operation of law or otherwise, existing or arising
from any past acts or events occurring or failing to occur or alleged to have
occurred or to have failed to occur or any conditions existing or alleged to
have existed on or before the IPO Date, including in connection with the
transactions and all other activities to implement the IPO.

                                       36
<PAGE>

                  (c) NO IMPAIRMENT. Nothing contained in Section 5.1(a) or
Section 5.1(b) shall limit or otherwise affect any Party's rights or obligations
pursuant to or contemplated by this Agreement or any Inter-Company Agreement, in
each case in accordance with its terms, including, without limitation, any
obligations relating to indemnification, including indemnification pursuant to
Section 5.2 and Section 5.3 of this Agreement, and any Insurance Proceeds under
any Retail Ventures Insurance Policies relating to the DSW Business which DSW is
entitled to be paid.

                  (d) NO ACTIONS AS TO RELEASED PRE-IPO DATE CLAIMS. DSW agrees,
for itself and as agent for each member of the DSW Group, not to make any claim
or demand, or commence any Action asserting any claim or demand, including any
claim of contribution or any indemnification, against Retail Ventures or any
member of the Retail Ventures Group, or any other Person released pursuant to
Section 5.1(a), with respect to any Liabilities released pursuant to Section
5.1(a). Retail Ventures agrees, for itself and as agent for each member of the
Retail Ventures Group, not to make any claim or demand, or commence any Action
asserting any claim or demand, including any claim of contribution or any
indemnification, against DSW or any member of the DSW Group, or any other Person
released pursuant to Section 5.1(b), with respect to any Liabilities released
pursuant to Section 5.1(b).

                  (e) FURTHER INSTRUMENTS. At any time, at the request of any
other Party, each Party shall cause each member of its respective Retail
Ventures Group or DSW Group, as applicable, to execute and deliver releases
reflecting the provisions hereof.

            Section 5.2 INDEMNIFICATION BY DSW. Except as otherwise provided in
this Agreement, DSW shall, for itself and as agent for each member of the DSW
Group, indemnify, defend (or, where applicable, pay the defense costs for) and
hold harmless the Retail Ventures Indemnitees from and against, and shall
reimburse such Retail Ventures Indemnitees with respect to, any and all Losses
that any third party seeks to impose upon the Retail Ventures Indemnitees, or
which are imposed upon the Retail Ventures Indemnitees, and that relate to,
arise or result from, whether prior to or following the IPO Date, any of the
following items (without duplication):

                  (a) any DSW Liability;

                  (b) any breach by DSW or any member of the DSW Group of this
Agreement or any of the Inter-Company Agreements; and

                  (c) any IPO Liabilities, other than the Retail Ventures
Portions.

In the event that any member of the DSW Group makes a payment to the Retail
Ventures Indemnitees hereunder, and any of the Retail Ventures Indemnitees
subsequently diminishes the Liability on account of which such payment was made,
either directly or through a third-party recovery (other than a recovery
indirectly from Retail Ventures), Retail Ventures will promptly repay (or will
procure Retail Ventures Indemnitee to promptly repay) such member of the DSW
Group the amount by which the payment

                                       37
<PAGE>

made by such member of the DSW Group exceeds the actual cost of the associated
indemnified Liability.

            Section 5.3 INDEMNIFICATION BY RETAIL VENTURES. Except as otherwise
provided in this Agreement, Retail Ventures shall, for itself and as agent for
each member of the Retail Ventures Group, indemnify, defend (or, where
applicable, pay the defense costs for) and hold harmless the DSW Indemnitees
from and against, and shall reimburse such DSW Indemnitee with respect to, any
and all Losses that any third party seeks to impose upon the DSW Indemnitees, or
which are imposed upon the DSW Indemnitees, and that relate to, arise or result
from, whether prior to or following the IPO Date, with any of the following
items (without duplication):

                  (a) any Liability of the Retail Ventures Group and all
Liabilities arising out of the operation or conduct of the Retail Ventures
Business (in each case excluding the DSW Liabilities);

                  (b) any breach by Retail Ventures or any member of the Retail
Ventures Group of this Agreement or any of the Inter-Company Agreements; and

                  (c) any IPO Liabilities with respect to the Retail Ventures
Portions only.

In the event that any member of the Retail Ventures Group makes a payment to the
DSW Indemnitees hereunder, and any of the DSW Indemnitees subsequently
diminishes the Liability on account of which such payment was made, either
directly or through a third-party recovery (other than a recovery indirectly
from DSW), DSW will promptly repay (or will procure a DSW Indemnitee to promptly
repay) such member of the Retail Ventures Group the amount by which the payment
made by such member of the Retail Ventures Group exceeds the actual cost of the
indemnified Liability.

            Section 5.4 ANCILLARY AGREEMENT LIABILITIES. Notwithstanding any
other provision in this Agreement to the contrary, any Liability specifically
assumed by, or allocated to, a Party in any of the Inter-Company Agreements
shall be governed exclusively by the terms of such Inter-Company Agreement.

            Section 5.5 OTHER AGREEMENTS EVIDENCING INDEMNIFICATION OBLIGATIONS.
Retail Ventures hereby agrees to execute, for the benefit of any DSW Indemnitee,
such documents as may be reasonably requested by such DSW Indemnitee, evidencing
Retail Ventures' agreement that the indemnification obligations of Retail
Ventures set forth in this Agreement inure to the benefit of and are enforceable
by such DSW Indemnitee. DSW hereby agrees to execute, for the benefit of any
Retail Ventures Indemnitee, such documents as may be reasonably requested by
such Retail Ventures Indemnitee, evidencing DSW's agreement that the
indemnification obligations of DSW set forth in this Agreement inure to the
benefit of and are enforceable by such Retail Ventures Indemnitee.

            Section 5.6 REDUCTIONS FOR INSURANCE PROCEEDS AND OTHER RECOVERIES.

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<PAGE>

                  (a) INSURANCE PROCEEDS. The amount that any Indemnifying Party
is or may be required to provide indemnification to or on behalf of any
Indemnitee pursuant to Section 5.2 or Section 5.3, as applicable, shall be
reduced (retroactively or prospectively) by any Insurance Proceeds or other
amounts actually recovered from third parties by or on behalf of such Indemnitee
in respect of the related Loss. The existence of a claim by an Indemnitee for
monies from an insurer or against a third party in respect of any indemnifiable
Loss shall not, however, delay any payment pursuant to the indemnification
provisions contained herein and otherwise determined to be due and owing by an
Indemnifying Party. Rather, the Indemnifying Party shall make payment in full of
the amount determined to be due and owing by it against an assignment by the
Indemnitee to the Indemnifying Party of the entire claim of the Indemnitee for
Insurance Proceeds or against such third party. Notwithstanding any other
provisions of this Agreement, it is the intention of the Parties that no insurer
or any other third party shall be (i) entitled to a benefit it would not be
entitled to receive in the absence of the foregoing indemnification provisions,
or (ii) relieved of the responsibility to pay any claims for which it is
obligated. If an Indemnitee has received the payment required by this Agreement
from an Indemnifying Party in respect of any indemnifiable Loss and later
receives Insurance Proceeds or other amounts in respect of such indemnifiable
Loss, then such Indemnitee shall hold such Insurance Proceeds or other amounts
in trust for the benefit of the Indemnifying Party (or Indemnifying Parties) and
shall pay to the Indemnifying Party, as promptly as practicable after receipt, a
sum equal to the amount of such Insurance Proceeds or other amounts received, up
to the aggregate amount of any payments received from the Indemnifying Party
pursuant to this Agreement in respect of such indemnifiable Loss (or, if there
is more than one Indemnifying Party, the Indemnitee shall pay each Indemnifying
Party, its proportionate share (based on payments received from the Indemnifying
Parties) of such Insurance Proceeds).

                  (b) TAX COST/TAX BENEFIT. The amount that any Indemnifying
Party is or may be required to provide indemnification to or on behalf of any
Indemnitee pursuant to Section 5.2 or Section 5.3, as applicable, shall be (i)
increased to take account of any net Tax cost incurred by the Indemnitee arising
from the receipt or accrual of an indemnification payment hereunder (grossed up
for such increase) and (ii) reduced to take account of any net Tax benefit
realized by the Indemnitee arising from incurring or paying such loss or other
liability. In computing the amount of any such Tax cost or Tax benefit, the
Indemnitee shall be deemed to recognize all other items of income, gain, loss,
deduction or credit before recognizing any item arising from the receipt or
accrual of any indemnification payment hereunder or incurring or paying any
indemnified Loss. Any indemnification payment hereunder shall initially be made
without regard to this Section 5.6(b) and shall be increased or reduced to
reflect any such net Tax cost (including gross-up) or net Tax benefit only after
the Indemnitee has actually realized such cost or benefit. For purposes of this
Agreement, an Indemnitee shall be deemed to have "actually realized" a net Tax
cost or a net Tax benefit to the extent that, and at such time as, the amount of
Taxes payable by such Indemnitee is increased above or reduced below, as the
case may be, the amount of Taxes that such Indemnitee would be required to pay
but for the receipt or accrual of the indemnification payment or the incurrence
or payment of such Loss, as the case may be. The amount of any increase or

                                       39
<PAGE>

reduction hereunder shall be adjusted to reflect any Final Determination with
respect to the Indemnitee's liability for Taxes, and payments between such
indemnified parties to reflect such adjustment shall be made if necessary.
Notwithstanding any other provision of this Agreement, to the extent permitted
by applicable law, the Parties hereto agree that any Indemnity Payment made
hereunder shall be treated as a capital contribution or dividend distribution,
as the case may be, immediately prior to the IPO Date and, accordingly, not
includible in the taxable income of the recipient or deductible by the payor.

            Section 5.7 PROCEDURES FOR DEFENSE, SETTLEMENT AND INDEMNIFICATION
OF THIRD PARTY CLAIMS.

                  (a) NOTICE OF CLAIMS. If an Indemnitee shall receive notice or
otherwise learn of the assertion by a Person (including any Governmental
Authority) who is not a member of the Retail Ventures Group or the DSW Group of
any claim or of the commencement by any such Person of any Action (collectively,
a "Third Party Claim") with respect to which an Indemnifying Party may be
obligated to provide indemnification, Retail Ventures and DSW (as applicable)
will ensure that such Indemnitee shall give such Indemnifying Party written
notice thereof within thirty (30) days after becoming aware of such Third Party
Claim. Any such notice shall describe the Third Party Claim in reasonable
detail. Notwithstanding the foregoing, the delay or failure of any Indemnitee or
other Person to give notice as provided in this Section 5.7(a) shall not relieve
the related Indemnifying Party of its obligations under this ARTICLE V, except
to the extent that such Indemnifying Party is actually and substantially
prejudiced by such delay or failure to give notice.

                  (b) DEFENSE BY INDEMNIFYING PARTY. An Indemnifying Party shall
be entitled to participate in the defense of any Third Party Claim and, to the
extent that it wishes, at its cost, risk and expense, to assume the defense
thereof, with counsel reasonably satisfactory to the party seeking
indemnification. After timely notice from the Indemnifying Party to the
Indemnitee of such election to so assume the defense thereof, the Indemnifying
Party shall not be liable to the party seeking indemnification for any legal
expenses of other counsel or any other expenses subsequently incurred by
Indemnitee in connection with the defense thereof. The Indemnitee agrees to
cooperate in all reasonable respects with the Indemnifying Party and its counsel
in the defense against any Third Party Claim. The Indemnifying Party shall be
entitled to compromise or settle any Third Party Claim as to which it is
providing indemnification, which compromise or settlement shall be made only
with the written consent of the Indemnitee, such consent not to be unreasonably
withheld.

                  (c) DEFENSE BY INDEMNITEE. If an Indemnifying Party fails to
assume the defense of a Third Party Claim within thirty (30) calendar days after
receipt of notice of such claim, Indemnitee will, upon delivering notice to such
effect to the Indemnifying Party, have the right to undertake the defense,
compromise or settlement of such Third Party Claim on behalf of and for the
account of the Indemnifying Party subject to the limitations as set forth in
this Section 5.7; PROVIDED, HOWEVER, that such Third Party Claim shall not be
compromised or settled without the

                                       40
<PAGE>

written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld. If the Indemnitee assumes the defense of any Third Party
Claim, it shall keep the Indemnifying Party reasonably informed of the progress
of any such defense, compromise or settlement. The Indemnifying Party shall
reimburse all such costs and expenses of the Indemnitee in the event it is
ultimately determined that the Indemnifying Party is obligated to indemnify the
Indemnitee with respect to such Third Party Claim. In no event shall an
Indemnifying Party be liable for any settlement effected without its consent,
which consent will not be unreasonably withheld.

            Section 5.8 ADDITIONAL MATTERS.

                  (a) COOPERATION IN DEFENSE AND SETTLEMENT. With respect to any
Third Party Claim that implicates both DSW and Retail Ventures in a material
fashion due to the allocation of Liabilities, responsibilities for management of
defense and related indemnities set forth in this Agreement or any of the
Inter-Company Agreements, the Parties agree to cooperate fully and maintain a
joint defense (in a manner that will preserve the attorney-client privilege,
joint defense or other privilege with respect thereto) so as to minimize such
Liabilities and defense costs associated therewith. The Party that is not
responsible for managing the defense of such Third Party Claims shall, upon
reasonable request, be consulted with respect to significant matters relating
thereto and may, if necessary or helpful, associate counsel to assist in the
defense of such claims.

                  (b) PRE-IPO DATE ACTIONS. Except with respect to matters
pertaining solely to, or solely in connection with, the DSW Business, Retail
Ventures may, in its sole discretion, have exclusive authority and control over
the investigation, prosecution, defense and appeal of all Actions pending at the
IPO Date relating to or arising in connection with, in any manner, the DSW
assets or the DSW Liabilities if Retail Ventures or a member of the Retail
Ventures Group is named as a party thereto; PROVIDED, HOWEVER, that Retail
Ventures must obtain the written consent of DSW, such consent not to be
unreasonably withheld, to settle or compromise or consent to the entry of
judgment with respect to such Action. After any such compromise, settlement,
consent to entry of judgment or entry of judgment, Retail Ventures shall
reasonably and fairly allocate to DSW and DSW shall be responsible for DSW's
proportionate share of any such compromise, settlement, consent or judgment
attributable to the DSW Business, the DSW assets or the DSW Liabilities,
including its proportionate share of the costs and expenses associated with
defending same.

                  (c) SUBSTITUTION. In the event of an Action in which the
Indemnifying Party is not a named defendant, if either the Indemnitee or the
Indemnifying Party shall so request, the Parties shall endeavor to substitute
the Indemnifying Party for the named defendant. If such substitution or addition
cannot be achieved for any reason or is not requested, the rights and
obligations of the Parties regarding indemnification and the management of the
defense of claims as set forth in this ARTICLE V shall not be altered.

                                       41
<PAGE>

                  (d) SUBROGATION. In the event of payment by or on behalf of
any Indemnifying Party to or on behalf of any Indemnitee in connection with any
Third Party Claim, such Indemnifying Party shall be subrogated to and shall
stand in the place of such Indemnitee, in whole or in part based upon whether
the Indemnifying Party has paid all or only part of the Indemnitee's Liability,
as to any events or circumstances in respect of which such Indemnitee may have
any right, defense or claim relating to such Third Party Claim against any
claimant or plaintiff asserting such Third Party Claim or against any other
person. Such Indemnitee shall cooperate with such Indemnifying Party in a
reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

            Section 5.9 SURVIVAL OF INDEMNITIES. Subject to Section 5.5, the
rights and obligations of the members of the Retail Ventures Group and the DSW
Group under this ARTICLE V shall survive the sale or other transfer by any Party
of any assets or businesses or the assignment by it of any Liabilities or the
sale by any member of the Retail Ventures Group or the DSW Group of the capital
stock or other equity interests of any Subsidiary to any Person.

                                   ARTICLE VI
                                INSURANCE MATTERS

            Section 6.1 DSW INSURANCE COVERAGE DURING THE INSURANCE TRANSITION
PERIOD. As more fully provided in the Shared Services Agreement, Retail Ventures
shall maintain policies of insurance, including policies for the benefit of DSW
or any of its Subsidiaries, directors, officers, employees or other covered
parties (collectively, the "DSW Covered Parties"), and DSW and the DSW Covered
Parties shall promptly pay or reimburse Retail Ventures for premium expenses,
deductibles or retention amounts which Retail Ventures may incur in connection
with such insurance coverages.

            Section 6.2 DSW INSURANCE COVERAGE AFTER THE INSURANCE TRANSITION
PERIOD. From and after expiration of the Shared Services Agreement, DSW shall be
responsible for obtaining and maintaining insurance programs for its risk of
loss and such insurance arrangements shall be separate and apart from Retail
Ventures' insurance programs.

                                  ARTICLE VII
                                  MISCELLANEOUS

            Section 7.1 LIMITATION OF LIABILITY. IN NO EVENT SHALL ANY MEMBER OF
THE RETAIL VENTURES GROUP OR DSW GROUP BE LIABLE TO ANY OTHER MEMBER OF THE
RETAIL VENTURES GROUP OR DSW GROUP FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT,
INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY
OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT,
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;
PROVIDED, HOWEVER,

                                       42
<PAGE>

THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY'S INDEMNIFICATION
OBLIGATIONS FOR LIABILITIES AS SET FORTH IN THIS AGREEMENT OR IN ANY ANCILLARY
AGREEMENT.

            Section 7.2 ENTIRE AGREEMENT. This Agreement, the Inter-Company
Agreements and the Exhibits and Schedules referenced or attached hereto and
thereto, constitute the entire agreement between the Parties with respect to the
subject matter hereof and thereof and shall supersede all prior written and oral
and all contemporaneous oral agreements and understandings with respect to the
subject matter hereof and thereof.

            Section 7.3 GOVERNING LAW AND JURISDICTION. This Agreement shall be
construed in accordance with and all Disputes hereunder shall be governed by the
laws of the State of Ohio, excluding its conflict of law rules. The Parties
agree that the court of common pleas of Franklin County, Ohio, shall have
exclusive jurisdiction over all actions between the Parties for preliminary
relief in aid of arbitration pursuant to Section 3.10 herein, and non-exclusive
jurisdiction over any action for enforcement of an arbitral award.

            Section 7.4 TERMINATION; AMENDMENT. This Agreement and all
Inter-Company Agreements may be terminated or amended by and in the sole
discretion of Retail Ventures, without the approval of DSW, at any time prior to
the IPO. This Agreement and any applicable Inter-Company Agreements may be
terminated or amended at any time after such date and before the Distribution
Date by mutual consent of Retail Ventures and DSW, evidenced by an instrument in
writing signed on behalf of each of the Parties. In the event of termination
pursuant to this Section 7.4, no Party shall have any liability of any kind to
the other Party.

            Section 7.5 NOTICES. Notices, offers, requests or other
communications required or permitted to be given by either party pursuant to the
terms of this Agreement shall be given in writing to the respective Parties to
the following addresses:

            if to Retail Ventures:

            Retail Ventures, Inc.
            3241 Westerville Road
            Columbus, OH  43223

            Attention: James A. McGrady, Chief Financial Office
            Fax: (614) 473-2721

            with a copy to:

            Julia A. Davis, General Counsel
            3241 Westerville Road
            Columbus, OH  43223
            Fax: (614) 337-4682

                                       43
<PAGE>

            if to DSW:

            DSW Inc.
            4150 East 5th Avenue
            Columbus, OH 43219

            Attention: Peter Z. Horvath, Chief Operating Officer
            Fax: (614) 238-4133

            with a copy to:

            Julia A. Davis, General Counsel
            3241 Westerville Road
            Columbus, OH  43223
            Fax: (614) 337-4682

or to such other address or facsimile number as the party to whom notice is
given may have previously furnished to the other in writing as provided herein.
Any notice involving non-performance, termination, or renewal shall be sent by
hand delivery, recognized overnight courier or, within the United States, may
also be sent via certified mail, return receipt requested. All other notices may
also be sent by facsimile, confirmed by first class mail. All notices shall be
deemed to have been given when received, if hand delivered; when transmitted, if
transmitted by facsimile or similar electronic transmission method; one working
day after it is sent, if sent by recognized overnight courier; and three days
after it is postmarked, if mailed first class mail or certified mail, return
receipt requested, with postage prepaid.

            Section 7.6 COUNTERPARTS. This Agreement, including the
Inter-Company Agreement and the Exhibits and Schedules hereto and thereto and
the other documents referred to herein or therein, may be executed in
counterparts, each of which shall be deemed to be an original but all of which
shall constitute one and the same agreement.

            Section 7.7 BINDING EFFECT; ASSIGNMENT. This Agreement shall inure
to the benefit of and be binding upon the Parties hereto and their respective
legal representatives and successors, and nothing in this Agreement, express or
implied, is intended to confer upon any other Person any rights or remedies of
any nature whatsoever under or by reason of this Agreement. This Agreement may
be enforced separately by each member of the Retail Ventures Group and each
member of the DSW Group. Neither party may assign this Agreement or any rights
or obligations hereunder, without the prior written consent of the other party,
and any such assignment shall be void; PROVIDED, HOWEVER, either party may
assign this Agreement to a successor entity in conjunction with such party's
reincorporation in another jurisdiction or into another business form.

                                       44
<PAGE>

            Section 7.8 SEVERABILITY. If any term or other provision of this
Agreement or the Exhibits or Schedules attached hereto is determined by a court,
administrative agency or arbitrator to be invalid, illegal or incapable of being
enforced by any rule of law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either party. Upon
such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the Parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as
closely as possible in an acceptable manner to the end that transactions
contemplated hereby are fulfilled to the fullest extent possible.

            Section 7.9 FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE.
No failure or delay on the part of either party hereto in the exercise of any
right hereunder shall impair such right or be construed to be a waiver of, or
acquiescence in, any breach of any representation, warranty or agreement herein,
nor shall any single or partial exercise of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies existing
under this Agreement or the Exhibits or Schedules attached hereto are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

            Section 7.10 AUTHORITY. Each of the Parties hereto represents to the
other that (a) it has the corporate or other requisite power and authority to
execute, deliver and perform this Agreement, (b) the execution, delivery and
performance of this Agreement by it have been duly authorized by all necessary
corporate or other actions, (c) it has duly and validly executed and delivered
this Agreement, and (d) this Agreement is a legal, valid and binding obligation,
enforceable against it in accordance with its terms subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally and general equity principles.

            Section 7.11 INTERPRETATION. The headings contained in this
Agreement, in any Exhibit or Schedule hereto and in the table of contents to
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement. Any capitalized term used in
any Exhibit or Schedule but not otherwise defined therein, shall have the
meaning assigned to such term in this Agreement. When a reference is made in
this Agreement to an Article or a Section, Exhibit or Schedule, such reference
shall be to an Article or Section of, or an Exhibit or Schedule to, this
Agreement unless otherwise indicated.

            Section 7.12 CONFLICTING AGREEMENTS. None of the provisions of this
Agreement are intended to supersede any provision in any Inter-Company Agreement
or any other agreement with respect to the respective subject matters thereof.
In the event of conflict between this Agreement and any Inter-Company Agreement
or other agreement executed in connection herewith, the provisions of such other
agreement shall prevail.

                                       45
<PAGE>

            Section 7.13 THIRD PARTY BENEFICIARIES. None of the provisions of
this Agreement shall be for the benefit of or enforceable by any third party,
including any creditor of any Person. No such third party shall obtain any right
under any provision of this Agreement or shall by reasons of any such provision
make any claim in respect of any Liability (or otherwise) against either Party
hereto.

                                  ARTICLE VIII
                                   DEFINITIONS

            Section 8.1 DEFINED TERMS. The following capitalized terms shall
have the meanings given to them in this Section 8.1:

      "AAA" has the meaning set forth in Section 3.10(c) of this Agreement.

      "Action" means any demand, action, suit, countersuit, arbitration,
inquiry, proceeding or investigation by or before any federal, state, local,
foreign or international governmental authority or any arbitration or mediation
tribunal, other than any demand, action, suit, countersuit, arbitration,
inquiry, proceeding or investigation relating to Taxes.

      "Affiliated Company" of any Person means any entity that controls, is
controlled by, or is under common control with such Person. As used herein,
"control" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such entity, whether
through ownership of voting securities or other interests, by contract or
otherwise.

      "Agreement" shall mean this Master Separation Agreement, together with the
Schedules and Exhibits hereto, as the same may be amended from time to time in
accordance with the provisions hereof.

      "Blackout Period" shall have the meaning set forth in Section 4.4 of this
Agreement.

      "Class A common shares" shall mean the Class A common shares, without par
value, of DSW.

      "Class B common shares" shall mean the Class B common shares, without par
value, of DSW.

      "Code" means the Internal Revenue Code of 1986 (or any successor statute),
as amended from time to time, and the regulations promulgated thereunder.

      "Commission" shall have the meaning set forth in the preamble of this
Agreement.

      "Common Shares" means the Class A and Class B common shares of DSW.

      "Company Notice" shall have the meaning set forth in Section 4.2(a) of
this Agreement.

                                       46
<PAGE>

      "Company Securities" shall have the meaning set forth in Section 4.2(b) of
this Agreement.

      "Confidential Business Information" shall have the meaning set forth in
Section 3.5(a)(iii) of this Agreement.

      "Confidential Information" shall have the meaning set forth in Section
3.5(a)(i) of this Agreement.

      "Confidential Operational Information" shall have the meaning set forth in
Section 3.5(a)(ii) of this Agreement.

      "Continuously Effective" with respect to a specified registration
statement, means that such registration statement shall not cease to be
effective and available for transfers of Registrable Securities in accordance
with the method of distribution set forth therein for longer than five (5)
business days during the period specified in the relevant provision of this
Agreement.

      "Contract" means any contract, agreement, lease, license, sales order,
purchase order, instrument or other commitment that is binding on any Person or
any part of its property under applicable law.

      "Conversion Warrants" shall have the meaning set forth in Section 2.1(c)
of this Agreement.

      "Debt Reorganization Events" shall have the meaning set forth in Section
2.1(c) of this Agreement.

      "Demand Registration" shall have the meaning set forth in Section 4.1(a)
of this Agreement.

      "Demand Registration Statement" shall have the meaning set forth in
Section 4.1(a) of this Agreement.

      "Dispute" has the meaning set forth in Section 3.10(a) of this Agreement.

      "Dispute Resolution Commencement Date" has the meaning set forth in
Section 3.10(a) of this Agreement.

      "Distribution" means the divestiture by Retail Ventures of all or a
significant portion of the Class B common shares of DSW owned by Retail
Ventures, which divestiture may be effected by Retail Ventures as a dividend, an
exchange with existing Retail Ventures stockholders for shares of Retail
Ventures capital stock, a spin-off or otherwise, as a result of which Retail
Ventures is no longer required to consolidate DSW's results of operations and
financial position (determined in accordance with generally accepted accounting
principles consistently applied).

                                       47
<PAGE>

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

      "DSW" shall have the meaning set forth in the preamble to this Agreement.

      "DSW Affiliate" means any corporation or other entity directly or
indirectly controlled by DSW.

      "DSW's Auditors" shall have the meaning set forth in Section 3.4(a) of
this Agreement.

      "DSW Balance Sheet" shall mean DSW's audited Consolidated Balance Sheet
included in the IPO Registration Statement on the date it is declared effective
by the Commission.

      "DSW Business" shall have the meaning set forth in the preamble of this
Agreement.

      "DSW Capital Stock" means all classes or series of capital stock of DSW.

      "DSW Covered Parties" has the meaning set forth in Section 6.1 of this
Agreement.

      "DSW Credit Facility" has the meaning set forth in Section 6.1 of this
Agreement.

      "DSW Group" means the affiliated group (within the meaning of Section
1504(a) of the Code), or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which DSW will
be the common parent corporation immediately after the Distribution, and any
corporation or other entity which may become a member of such group from time to
time.

      "DSW Indemnitees" means DSW, each member of the DSW Group and each of
their respective directors, officers and employees.

      "DSW Liabilities" shall mean (without duplication) the following
Liabilities:

                        (i) all Liabilities reflected in the DSW Balance Sheet;

                        (ii) all Liabilities of Retail Ventures or its
      Subsidiaries that arise after the date of the DSW Balance Sheet that would
      be reflected in a DSW balance sheet as of the date of such Liabilities, if
      such balance sheet was prepared using the same principles and accounting
      policies under which the DSW Balance Sheet was prepared;

                                       48
<PAGE>

                        (iii) all Liabilities that should have been reflected in
      the DSW Balance Sheet but are not reflected in the DSW Balance Sheet due
      to mistake or unintentional omission;

                        (iv) all Liabilities (other than Liabilities for Taxes,
      which are governed by the Tax Separation Agreement), whether arising
      before, on or after the IPO Date, that relate to, arise or result from:

                              (1) the operation of the DSW Business, as
      conducted at any time prior to, on or after the IPO Date (including any
      Liability relating to, arising out of or resulting from any act or failure
      to act by any director, officer, employee, agent or representative
      (whether or not such act or failure to act is or was within such Person's
      authority)); or

                              (2) the operation of any business conducted by any
      member of the DSW Group at any time after the IPO Date (including any
      Liability relating to, arising out of or resulting from any act or failure
      to act by any director, officer, employee, agent or representative
      (whether or not such act or failure to act is or was within such Person's
      authority));

                        (v) all Liabilities that relate to, arise or result from
      the DSW Credit Facility;

                        (vi) all Liabilities that are expressly contemplated by
      this Agreement, or any other Inter-Company Agreement (or the Schedules
      hereto or thereto) as Liabilities to be assumed by DSW or any member of
      the DSW Group; and

                        (vii) Liabilities of any member of the DSW Group under
      this Agreement or any of the Inter-Company Agreements.

      After the IPO Date, Retail Ventures and DSW may receive invoices
      evidencing liabilities jointly incurred by or on behalf of both of them or
      their respective Affiliates. Accordingly, each of Retail Ventures and DSW
      agrees that such joint liabilities shall be divided among Retail Ventures,
      DSW and their respective Affiliates consistent with past practice and "DSW
      Liabilities" shall include the portion so allocated to DSW.

      "DSWSW" shall have the meaning set forth in Section 2.1(c) of this
Agreement.

      "Effective Date" means the date registration statement filed pursuant to
Article IV hereof is declared effective by the Commission.

      "Exchange Act" shall have the meaning set forth in Section 2.1(a) of this
Agreement.

      "Final Determination" has the meaning set forth in the Tax Separation
Agreement.

                                       49
<PAGE>

      "Governmental Approvals" means any notices, reports or other filings to be
made, or any consents, registrations, approvals, permits or authorizations to be
obtained from, any Governmental Authority.

      "Governmental Authority" shall mean any federal, state, local, foreign or
international court, government, department, commission, board, bureau, agency,
official or other regulatory, administrative or governmental authority.

      "Holders" shall mean, collectively, Retail Ventures and its Affiliated
Companies (other than DSW) who from time to time own Registrable Securities,
each of such entities separately is sometimes referred to herein as a "Holder."

      "Indemnifying Party" means any party which may be obligated to provide
indemnification to an Indemnitee pursuant to Section 5.2 or Section 5.3 hereof
or any other section of this Agreement or any Inter-Company Agreement.

      "Indemnitee" means any party which may be entitled to indemnification from
an Indemnifying Party pursuant to Section 5.2 or Section 5.3 hereof or any other
section of this Agreement or any Inter-Company Agreement.

      "Information" means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books,
contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under their
direction (including attorney work product), and other technical, financial,
employee or business information or data.

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

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

      "Insurance Transition Period" shall mean the period beginning on the IPO
Date and ending on the Distribution Date.

      "Inter-Company Agreements" shall mean the IP License, the Share Exchange
Agreement, the Tax Separation Agreement and the Shared Services Agreement.

      "IP License" shall have the meaning set forth in Section 2.1(c) of this
Agreement.

      "IPO" shall have the meaning set forth in the preamble of this Agreement.

                                       50
<PAGE>

      "IPO Date" shall have the meaning set forth Section 2.1(c) of this
Agreement.

      "IPO Conditions" shall have the meaning set forth in Section 2.1(c) of
this Agreement.

      "IPO Liabilities" means any Liabilities relating to, arising out of or
resulting from any untrue statement or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, with
respect to all information contained in the IPO Registration Statement or any
preliminary, final or supplemental prospectus forming a part of the IPO
Registration Statement.

      "IPO Registration Statement" shall have the meaning set forth in the
preamble of this Agreement.

      "Lease" has the meaning set forth in Section 3.10(a) of this Agreement.

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

      "Loss and Losses" mean any and all damages, losses, deficiencies,
Liabilities, obligations, penalties, judgments, settlements, claims, payments,
fines, interest, costs and expenses (including, without limitation, the costs
and expenses of any and all Actions and demands, assessments, judgments,
settlements and compromises relating thereto and the costs and expenses of
attorneys', accountants', consultants' and other professionals' fees and
expenses incurred in the investigation or defense thereof or the enforcement of
rights hereunder), including direct and consequential damages, but excluding
punitive damages (other than punitive damages awarded to any third party against
an indemnified party).

      "Maximum Number" when used in connection with an Underwritten Offering,
shall mean the maximum number of shares of DSW Capital Stock (or amount of other
Registrable Securities) that the Underwriters' Representative has informed DSW
may be included as part of such offering without materially and adversely
affecting the success or pricing of such offering.

      "Northland" has the meaning set forth in Section 3.10(a) of this
Agreement.

      "Northland Accounting" has the meaning set forth in Section 3.10(a) of
this Agreement.

      "NYSE" shall have the meaning set forth in Section 2.1(c) of this
Agreement.

                                       51
<PAGE>

      "Other Holders" shall have the meaning set forth in Section 4.2(c) of this
Agreement.

      "Other Securities" shall have the meaning set forth in Section 4.2(a) of
this Agreement.

      "Party" or "Parties" shall have the meaning set forth in the preamble of
this Agreement.

      "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization or a governmental entity or any
department, agency or political subdivision thereof.

      "Pre-Distribution Period" shall have the meaning set forth in Section
3.3(c) of this Agreement.

      "Privileges" shall have the meaning set forth in Section 3.6(a) of this
Agreement.

      "Privileged Information" shall have the meaning set forth in Section
3.6(a) of this Agreement.

      "Registrable Securities" means (i) the Class B common shares held by
Retail Ventures immediately following the IPO Date (the "Shares"), (ii) any
other securities issued or distributed to Retail Ventures in respect of the
Class B common shares by way of stock dividend or stock split or in connection
with a combination of shares, recapitalization, reorganization, merger,
consolidation or otherwise, (iii) any Class A Common Shares or other securities
received by Retail Ventures into which or for which Class B common shares are
converted or exchanged or are convertible or exchangeable, (iv) any other Class
B common shares acquired by Retail Ventures prior to the Distribution Date, and
(v) any other successor securities received by Retail Ventures in respect of any
of the forgoing (i) through (iv); PROVIDED that in the event that any
Registrable Securities (as defined without giving effect to this proviso) are
being registered pursuant hereto, the Holder may include in such registration
(subject to the limitations of this Agreement otherwise applicable to the
inclusion of Registrable Securities) any Class B common or securities acquired
in respect thereof thereafter acquired by such Holder, which shall also be
deemed to be "Shares" and accordingly Registrable Securities, for purposes of
such registration. As to any particular Registrable Securities, such Registrable
Securities shall cease to be Registrable Securities when (w) a registration
statement with respect to the sale by Retail Ventures shall have been declared
effective under the Securities Act and such Shares shall have been disposed of
in accordance with such registration statement, (x) they shall have been
distributed to the public in accordance with Rule 144, (y) they shall have been
otherwise transferred by Retail Ventures to an entity or Person that is not an
Affiliated Company of Retail Ventures, new certificates for them not bearing a
legend restricting further transfer shall have been delivered by DSW and
subsequent disposition of them shall not require

                                       52
<PAGE>

registration or qualification of them under the Securities Act or any state
securities or blue sky law then in effect or (z) they shall have ceased to be
outstanding.

      "Registration Expenses" means any and all out-of-pocket expenses incident
to performance of or compliance with ARTICLE IV of this Agreement, including,
without limitation, (i) all Commission registration and filing fees, (ii) all
fees and expenses of complying with securities or blue sky laws (including fees
and disbursements of counsel for any underwriters in connection with blue sky
qualifications of the Registrable Securities) or relating to the National
Association of Securities Dealers, Inc., (iii) all printing, messenger and
delivery expenses, (iv) all fees and expenses incurred in connection with
listing (or authorizing for quotation) the Registrable Securities on a
securities exchange or automated inter-dealer Quotation System pursuant to the
requirements hereof, (v) the fees and disbursements of counsel for DSW and of
its independent public accountants, (vi) all expenses in connection with the
preparation, printing and filing of the registration statement, any preliminary
prospectus or final prospectus and amendments and supplements thereto and the
mailing and delivering of copies thereof to any Holders, underwriters and
dealers and all expenses incidental to delivery of the Registrable Securities,
(vii) the reasonable fees and disbursements of one firm of counsel, other than
DSW's counsel, selected by the Holders of Registrable Securities being
registered, (viii) any fees and disbursements of underwriters customarily paid
by the issuers or sellers of securities, and the reasonable fees and expenses of
any special experts retained in connection with the requested registration, but
excluding underwriting discounts and commissions and transfer taxes, if any, and
(ix) the expenses incurred in connection with making "road show" presentations
and holding meetings with potential investors to facilitate the distribution and
sale of Registrable Securities.

      "Request" shall have the meaning set forth in Section 4.1(a) of this
Agreement.

      "Retail Ventures" shall have the meaning set forth in the preamble to this
Agreement.

      "Retail Ventures' Auditors" shall have the meaning set forth in Section
3.4(b) of this Agreement.

      "Retail Ventures Business" means any business of Retail Ventures other
than the DSW Business.

      "Retail Ventures Group" means the affiliated group (within the meaning of
Section 1504(a) of the Code), or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which Retail
Ventures is the common parent corporation, and any corporation or other entity
which may be, may have been or may become a member of such group from time to
time, but excluding any member of the DSW Group.

      "Retail Ventures Indemnitees" means Retail Ventures, each member of the
Retail Ventures Group and each of their respective directors, officers and
employees.

                                       53
<PAGE>

      "Retail Ventures Portions" means all information set forth in, or
incorporated by reference into, the IPO Registration Statement, to the extent
such information relates exclusively to (a) Retail Ventures and the Retail
Ventures Group and (b) the Retail Ventures Business.

      "Retail Ventures Securities" shall have the meaning set forth in Section
4.2(b) of this Agreement.

      "Rule 144" means Rule 144 (or any successor rule to similar effect)
promulgated under the Securities Act.

      "Rule 415 Offering" means an offering on a delayed or continuous basis
pursuant to Rule 415 (or any successor rule to similar effect) promulgated under
the Securities Act.

      "Securities Act" means the Securities Act of 1933, as amended.

      "Selling Holder" shall have the meaning set forth in Section 4.6(e) of
this Agreement.

      "Shared Services Agreement" shall have the meaning set forth in Section
2.1(c) of this Agreement.

      "Share Exchange Agreement" shall have the meaning set forth in Section
2.1(c) of this Agreement.

      "Shares" shall have the meaning set forth in the definition of Registrable
Securities.

      "SSC" shall have the meaning set forth in Section 2.1(c) of this
Agreement.

      "Subsidiary" of any Person means a corporation or other organization
whether incorporated or unincorporated of which at least a majority of the
securities or interests having by the terms thereof ordinary voting power to
elect at least a majority of the board of directors or others performing similar
functions with respect to such corporation or other organization is directly or
indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries; PROVIDED,
HOWEVER, that no Person that is not directly or indirectly wholly-owned by any
other Person shall be a Subsidiary of such other Person unless such other Person
controls, or has the right, power or ability to control, that Person.

      "Sublease" has the meaning set forth in Section 3.10(a) of this Agreement.

      "Tax and Taxes" have the meaning set forth in the Tax Separation
Agreement.

      "Tax Separation Agreement" shall have the meaning set forth in Section
2.1(c) of this Agreement.

                                       54
<PAGE>

      "Term Loan Warrants" shall have the meaning set forth in Section 2.1(c) of
this Agreement.

      "Third Party Claim" has the meaning set forth in Section 5.1(a) of this
Agreement.

      "Underwritten Offering" shall mean a registration in which securities of
DSW are sold to one or more underwriters for reoffering to the public.

      "Underwriters" shall have the meaning set forth in Section 2.1(a) of this
Agreement.

      "Underwriting Agreement" shall have the meaning set forth in Section
2.1(a) of this Agreement.

      "Underwriters' Representative" when used in connection with an
Underwritten Offering, shall mean the managing underwriter of such offering, or,
in the case of a co-managed underwriting, the managing underwriters designated
as the Underwriters' Representative by the co-managers.

      "Warrants" shall have the meaning set forth in Section 2.1(c) of this
Agreement.

                                       55
<PAGE>

      WHEREFORE, the Parties have signed this Master Separation Agreement
effective as of the date first set forth above.

                                       RETAIL VENTURES, INC.

                                       /s/ James A. McGrady
                                       ---------------------------------
                                       Name: James A. McGrady
                                       Title: CFO

                                       DSW, INC.

                                       /s/ Peter Z. Horvath
                                       ---------------------------------
                                       Name: Peter Z. Horvath
                                       Title: COO, EVP

                                       56
<PAGE>

                                    EXHIBIT A
                                   IP LICENSE

<PAGE>

                                 SCHEDULE 1.1(c)

              CERTAIN OFFICERS AND/OR DIRECTORS OF RETAIL VENTURES

<PAGE>

                                 SCHEDULE 1.2(b)

                    CERTAIN OFFICERS AND/OR DIRECTORS OF DSW

<PAGE>

                                 SCHEDULE 2.3(g)

1.    DSW Inc. (formerly known as Shonac Corporation) and DSW Shoe Warehouse,
      Inc. are parties to a Guaranty in favor of GMAC Commercial Credit LLC,
      dated November 26, 2004.

2.    DSW Inc. (formerly known as Shonac Corporation) and DSW Shoe Warehouse,
      Inc. are parties to a Guaranty in favor of Capital Factors, Inc., dated
      November 26, 2004.

3.    DSW Inc. (formerly known as Shonac Corporation) and DSW Shoe Warehouse,
      Inc. are parties to a Guaranty in favor of The CIT Group/Commercial
      Services, Inc., dated November 26, 2004.<PAGE>

                                                                    EXHIBIT 10.2

                            SHARED SERVICES AGREEMENT

                          DATED AS OF JANUARY 30, 2005

                                     BETWEEN

                                    DSW INC.

                                       AND

                              RETAIL VENTURES, INC.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  PAGE
<S>                                                                               <C>
                                    ARTICLE I
                                   DEFINITIONS

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

                                   ARTICLE II
                          PURCHASE AND SALE OF SERVICES

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

                                   ARTICLE III
                          SERVICE COSTS; OTHER CHARGES

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

                                   ARTICLE IV
                   STANDARD OR PERFORMANCE AND INDEMNIFICATION

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

                                    ARTICLE V
                              TERM AND TERMINATION

SECTION 5.01.    Term...........................................................   13
SECTION 5.02.    Termination....................................................   13
SECTION 5.03.    Effect of Termination..........................................   14
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                <C>
                                   ARTICLE VI
                                INSURANCE MATTERS

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

                                   ARTICLE VII
                              ADDITIONAL AGREEMENTS

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

                                  ARTICLE VIII
                                  MISCELLANEOUS

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

                                       ii
<PAGE>

                                    SCHEDULES

SCHEDULE I:      Services To Be Provided By Retail Ventures, Inc.
SCHEDULE II:     Services To Be Provided By DSW Inc.
SCHEDULE III:    Insurance Policies Maintained by Retail Ventures, Inc.

                                       iii

<PAGE>

                            SHARED SERVICES AGREEMENT

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

                                    RECITALS

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

      WHEREAS, the Parties currently contemplate that the Articles of
Incorporation of DSW will be amended to authorize 170,000,000 Class A common
shares, without par value (the "Class A common shares") and 100,000,000 Class B
common shares, without par value (the "Class B common shares"), and to change
the currently outstanding DSW common share into 27,702,667 Class B common
shares, all of which Class B common shares will be beneficially-owned by Retail
Ventures;

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

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

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

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

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

                                       1
<PAGE>

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

                              ARTICLE I DEFINITIONS

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

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

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

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

      "Department" means a business section or division of a Party.

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

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

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

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

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

      "Exchange Agreement" means an agreement between the parties relating to
the exchange of Class A common shares for Class B common shares.

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

                                       2
<PAGE>

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

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

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

      "Master Separation Agreement" means an agreement to be entered into by the
Parties in connection with the Offering to set forth the principal arrangements
between them regarding the separation of the DSW business from Retail Ventures.

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

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

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

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

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

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

                                       3
<PAGE>

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

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

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

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

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

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

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

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

                                       4
<PAGE>

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

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

                                   ARTICLE II
                          PURCHASE AND SALE OF SERVICES

      SECTION 2.01. Purchase and Sale of Retail Ventures Services.

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

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

                                       5
<PAGE>

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

      Section 2.02. Purchase and Sale of DSW Services

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

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

      SECTION 2.03 Additional Services.

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

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

                                       6
<PAGE>

                                   ARTICLE III
                          SERVICE COSTS; OTHER CHARGES

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

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

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

                                       7
<PAGE>

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

      SECTION 3.05. Benefit Billing.

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

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

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

      SECTION 3.06. Invoicing and Settlement of Costs.

      (a) Except as otherwise provided in a Schedule to this Agreement or to the
extent that Retail Ventures and DSW may mutually agree, each Billing Party shall
invoice or notify the

                                       8
<PAGE>

Chief Executive Officer or Chief Financial Officer of the Receiving Party on a
monthly basis (not later than the tenth day of each month), in a manner
substantially similar to and consistent with the billing practices used in
connection with services provided by Retail Ventures to the DSW Entities prior
to the Offering Date (except as otherwise agreed), of the Service Costs related
to services performed or procured by the Billing Party during the prior calendar
month. As used herein, "Service Costs" means the Retail Ventures Service Costs,
if Retail Ventures is the Billing Party, and the DSW Service Costs, if DSW is
the Billing Party. In connection with the invoicing described in this Section
3.06(a), the Billing Party shall provide to the Receiving Party the same billing
data and level of detail as customarily or similar to that provided to the
Receiving Party prior to the Offering Date and such other related data as may be
reasonably requested by the Receiving Party.

      (b) The Receiving Party agrees to pay to the Billing Party, on or before
the 30th day after the date on which the Billing Party delivers to the Receiving
Party an invoice or notice of Service Costs (or the next Business Day, if such
30th day is not a Business Day) (each, a "Payment Date"), by wire transfer of
immediately available funds payable to the order of the Billing Party, all
amounts so invoiced or noticed by the Billing Party pursuant to Section 3.06(a).
If the Receiving Party fails to pay any monthly payment within 30 days of the
relevant Payment Date, the Receiving Party shall be obligated to pay, in
addition to the amount due on such Payment Date, interest on such amount at the
prime, or best, rate announced by National City Bank, compounded monthly from
the relevant Payment Date through the date of payment. Payment can be made via
check, ACH or wire and, except as set forth in Section 3.15(c) of the Master
Separation Agreement, offsetting is not permitted.

                                   ARTICLE IV
                   STANDARD OF PERFORMANCE AND INDEMNIFICATION

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

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

                  (i) provide administrative and other services;

                                       9
<PAGE>

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

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

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

      SECTION 4.03. Limitation of Liability.

      (a) Retail Ventures Entities

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

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

            (iii) None of the Retail Venture Entities shall have any liability
      to any DSW Entity or any other Person for failure to perform Retail
      Ventures' obligations under this Agreement or otherwise, where (1) such
      failure to perform is not caused by the gross negligence or willful
      misconduct of the Retail Venture Entity designated to perform such
      obligations and (2) such failure to perform similarly affects the Retail
      Venture Entities

                                       10
<PAGE>

      receiving the same or similar services and does not have a
      disproportionately adverse effect on the DSW Entities, taken as a whole.

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

      (b) DSW Entities

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

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

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

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

                                       11
<PAGE>

      SECTION 4.04. Indemnification Related to Retail Ventures Services.

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

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

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

      SECTION 4.05. Indemnification Related to DSW Services.

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

                                       12
<PAGE>

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

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

                                    ARTICLE V
                              TERM AND TERMINATION

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

      SECTION 5.02. Termination.

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

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

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

                                       13
<PAGE>

      SECTION 5.03. Effect of Termination.

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

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

                                   ARTICLE VI
                                INSURANCE MATTERS

      SECTION 6.01. DSW Insurance Coverage During Transition Period.

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

                                       14
<PAGE>

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

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

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

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

                                       15
<PAGE>

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

      SECTION 6.05. Procedures with Respect to Insured DSW Liabilities.

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

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

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

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

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

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

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

                                       16
<PAGE>

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

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

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

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

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

      SECTION 6.11. Forbearance and Prior Insurance Coverage.

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

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

                                       17
<PAGE>

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

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

                                   ARTICLE VII
                              ADDITIONAL AGREEMENTS

      SECTION 7.01. Annual Budget. Prior to December 31, 2005 and each
subsequent year so long as this Agreement is in effect, the Parties agree to
work together and to cooperate with each other in good faith to develop an
annual budget ("Annual Budget") to reflect the estimated annual Service Costs to
each Party for each of the Services to be provided and/or procured by the other
Party as contemplated by this Agreement. In the budgeting process, the Parties
agree to use their reasonable efforts to harmonize the interests of the Parties
to have quality services at affordable costs and to recover the costs of
performing and/or procuring the Services. On or before December 31 of each
calendar year, an Annual Budget for the next calendar year shall be submitted to
the respective Controller or Chief Financial Officer of each of the Parties for
review and approval. Such approval shall constitute approval of the Annual
Budget by the Party represented by such person. During the months of July and
January of each year so long as this Agreement is in effect, the Parties shall
conduct a semi-annual reconciliation of actual Service Costs to budgeted Service
Costs to determine if there are any significant discrepancies between such costs
and, if so, whether the payments for services should be adjusted accordingly.

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

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

                                       18
<PAGE>

                                  ARTICLE VIII
                                  MISCELLANEOUS

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

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

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

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

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

                                       19
<PAGE>

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

      SECTION 8.06. Force Majeure.

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

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

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

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

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

                                       20
<PAGE>

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

            (a)   If to DSW, to:

                  Peter Horvath
                  DSW Inc.
                  4150 East 5th Avenue
                  Columbus, OH 43219
                  Fax: (614) 238-4133

            (b)   If to Retail Ventures, to:

                  Jim McGrady
                  Retail Ventures, Inc.
                  3241 Westerville Road
                  Columbus, OH 43224
                  Fax: 614-337-4682

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

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

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

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

                                       21
<PAGE>

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

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

                                       22
<PAGE>

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

                                              DSW INC.

                                              By: /s/ Peter Z. Horvath
                                                  ------------------------------
                                              Name: Peter Z. Horvath

                                              Title: EVP, COO

                                              RETAIL VENTURES, INC.

                                              By: /s/ James A. McGrady
                                                  ------------------------------
                                              Name: James A. McGrady

                                              Title: CFO

<PAGE>

                                  SCHEDULE I
                                       TO
                            SHARED SERVICES AGREEMENT
                             DATED JANUARY 30, 2005
                                     BETWEEN
                              RETAIL VENTURES, INC.
                                       AND
                                    DSW INC.

                               ------------------

      SERVICES TO BE PROVIDED BY RETAIL VENTURES, INC. AND RETAIL VENTURES
                                 SERVICES, INC.

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

1. GENERAL CORPORATE AND FINANCIAL
SERVICES:

   (i) PAYROLL SERVICES (including          Billing pro-rata based upon number
   preparation and distribution of          of DSW employee checks and Form W-2s
   employee checks; payment of payroll      issued by Retail Ventures. To be
   taxes, garnishment and other             billed weekly in arrears.
   deductions to appropriate parties;
   preparation and filing of employer
   tax returns; and preparation of
   annual W-2s for employees)

   (ii) TREASURY SERVICES (including        DSW to pay $1,000.00 per month and
   cash management; processing and          any stand-alone cash management
   paying invoices and purchase orders;     software and corresponding support
   monthly consolidation of financial       costs if added for DSW Services
   statements; and preparation of checks    only.
   for vendor payment and employee
   reimbursement)

   (iii) Sox and AUDITING Fees              Costs to be allocable based on
   (including coordination of external      sales.
   audit services and assistance with
   compliance with Sarbanes-Oxley
   requirements)

   (iii) ACCOUNTS PAYABLE, GENERAL          Overhead costs to be allocated based
   LEDGER, SALES AUDIT, BUDGET SERVICES-    on - time spent by associates, which
   AND INVENTORY CONTROL. GENERAL LEDGER    will be reviewed and determined
   INCLUDES, BUT IS NOT LIMITED TO,         annually.
   PREPARATION OF QUARTERLY,
                                            Sales Audit charges to include fees

                                       1
<PAGE>

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

   ANNUAL AND OTHER SEC REPORTS;            associated with software agreements
   ASSISTANCE WITH THE PREPARATION OF       that support DSW Entities.
   ANNUAL REPORT TO SHAREHOLDERS AND
   EARNINGS RELEASES; AND PREPARATION OF
   ERISA REPORTS.

   (v) TAX SERVICES (including              See Tax Separation Agreement between
   preparation and filing of all            DSW and Retail Ventures.
   federal, state and local tax returns,
   reports and other required filings;
   coordination and management of tax
   audits and other similar proceedings;
   and assistance with tax planning, tax
   strategy and compliance with the Tax
   Separation Agreement)

   (vii) Controller Services                Cost to be shared by DSW and Reta
                                            50/50 basis.

   (viii) SSC Corporate Services            Charges incurred on behalf of DSW
                                            entities will be allocated to DSW.
                                            Charges billed to other cost centers
                                            listed in these Agreement Schedules
                                            will be billed under the applicable
                                            cost center's methodology. General,
                                            unallocable charges to be allocated
                                            based on Percent of Sales billing.

2. INFORMATION TECHNOLOGY (ALL COST         Pass-Through Billing with respect to
CENTERS)                                    costs directly related to DSW
                                            Entities and Percent of Sales
                                            Billing with respect to overhead and
                                            Services shared by DSW Entities and
                                            Retail Ventures Entities.

3. HUMAN RESOURCES (ALL COST CENTERS)       Pass-Through Billing with respect to
                                            costs directly related to DSW
                                            Entities.

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

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

                                        2
<PAGE>

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

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

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

5. CHILDREN'S SHOE MERCHANDISING            DSW to pay 33% of the total payroll
                                            compensation of this department.

6. LEGAL SERVICES (including general        General Counsel compensation to be
legal advice from in-house legal staff;     shared by DSW and Retail Ventures on
preparation and review of SEC filings       a 50/50 basis.
and proxy materials; assistance with
corporate resolutions and preparations      Pass-Through Billing with respect to
for shareholders meetings; overseeing       costs directly related to DSW
and managing legal policy and strategy      Entities.
regarding litigation and regulatory
compliance)                                 Department overhead costs and
                                            general, unallocable professional
                                            fees to be allocated based on
                                            Percent of Sales Billing.

7. RISK MANAGEMENT (including management    a) Insurance premium costs billed as
of insurance and workers compensation       specified in Schedule III.
coverage; administration of claims
services; negotiation and acquisition of    b) - Overhead costs are billed on
insurance coverages including, but not      the weighted value of administrative
limited to, property and business           time directed to DSW entities for
interruption, casualty (including           (i) Workers' Compensation, (ii)
workers compensation), director and         General Liability and (iii) Property
officer liability and other liability       & All Other Lines combined with the
coverages)                                  ratio of the number of claims that
                                            are directly related to DSW Entities
                                            to the total number of claims for
                                            (i) Workers' Compensation, (ii)
                                            General Liability and (iii) Property
                                            & All Other Lines. -

8. LOSS PREVENTION (INCLUDING INTERNAL      Overhead costs to be allocated based
AUDIT)                                      on Percent of Sales Billing.

                                       3
<PAGE>

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

9. RVI CORPORATE EXECUTIVE OVERHEAD         DSW will pay 35% of the total
ALLOWANCE                                   overheads of this cost center that
                                            are associated with the CFO of RVI.
                                            It will exclude the costs associated
                                            with the CEO of RVI.

10. DISTRIBUTION SERVICES                   DSW will pay 10% of total overhead
                                            costs for this department.

11. DEPRECIATION OF IT OFFICE EQUIPMENT     Service fee charged to DSW for
LOCATED AT THE WESTERVILLE ROAD OFFICE      depreciation expenses associated
FACILITY (COST CENTER 01109)                with IT office equipment located at
                                            the Westerville Road Office. The
                                            billable charge for depreciation
                                            expenses is based on Percent of
                                            Sales Billing

12. LETTERS OF CREDIT ASSOCIATED WITH       DSW to be billed 15% of costs
WORKERS' COMPENSATION AND IBNR              associated with letters of credit
                                            for workers compensation and IBNR.

                                       4
<PAGE>

                                   SCHEDULE II
                                       TO
                            SHARED SERVICES AGREEMENT
                             DATED JANUARY 30, 2005
                                     BETWEEN
                              RETAIL VENTURES, INC.
                                       AND
                                    DSW INC.

                       SERVICES TO BE PROVIDED BY DSW INC.

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

1.    SHOE MERCHANDISING:

      (i)   PLANNING AND ALLOCATION      Value City to pay $20,000 per month.
      SUPPORT for Value City
      Department Stores, LLC

2.    DISTRIBUTION

      (i) DISTRIBUTION SERVICES AND      (i) The fixed distribution costs to be
      TRANSPORTATION MANAGEMENT for      charged to RVI are based on the actual
      Value City Department Stores,      monthly fixed costs incurred Filene's
      LLC and                            Basement at the 4150 East 5th Avenue
                                         Distribution Center (and exclude fixed
                                         costs associated with the Offices at
                                         the 5th Avenue Location) divided by the
                                         maximum case storage capacity of the
                                         5th Avenue Distribution Center times
                                         the average number of cases stored on
                                         behalf of Value City at the 5th Avenue
                                         Distribution Center for that month.
                                         Fixed costs incurred at the 5th Avenue
                                         Location that cannot be directly
                                         identified with either the Distribution
                                         Center or the Offices will be allocated
                                         between the Distribution Center and
                                         Offices by the space occupied by each
                                         in terms of square footage. -

                                         (ii) The variable costs to be charged
                                         to RVI are based on the actual monthly
                                         variable costs incurred at the 4150
                                         East 5th Avenue Distribution Center
                                         times the percentage of handling costs
                                         associated

                                        1
<PAGE>

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

                                         with Value City shoes to the total
                                         handling costs incurred for all shoes
                                         at the 5th Avenue Distribution Center
                                         for that month. Handling cost
                                         categories include Maintenance,
                                         Picking/Putaway, Quality Control,
                                         Receiving, Crossdock Receiving and
                                         Shipping, which are based on actual
                                         prior fiscal year costs per case, and
                                         Solids, Store Stock and Tagging, which
                                         are based on actual prior fiscal year
                                         costs per pair. The relevant per case
                                         and pair costs are calculated
                                         separately for (i) Value City and (ii)
                                         DSW, Steinmart, Gordmans and Filene's
                                         Basement and are based on actual prior
                                         year activity for each handling cost
                                         category. Handling costs are calculated
                                         on the relevant cost per case or pair
                                         times the actual cases or pairs
                                         handled for each relevant category for
                                         that month. Variable costs include
                                         salaries and associated payroll
                                         expenses for exempt and non-exempt
                                         personnel employed at the 5th Avenue
                                         Distribution Center, Rent Equipment,
                                         Repairs & Maintenance, Utilities and
                                         Supplies. They exclude Dues &
                                         Subscriptions, Janitorial Services,
                                         Telephone and Travel.

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

                                         (iv) Professional fees to be billed on
                                         the weighted average cost per case of
                                         the pools that Value City Shoes
                                         utilizes.

                                        2
<PAGE>

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

3.    REAL ESTATE/PROPERTY MANAGEMENT    Overhead costs to be allocated based on
                                         time spent by associates, which will be
                                         reviewed and determined annually.
                                         Related outside contractors/consultant
                                         costs, including legal services,
                                         allocated based on pass-through
                                         billing.

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

                                        3
<PAGE>

                                  SCHEDULE III

                                       TO

                            SHARED SERVICES AGREEMENT

                             DATED JANUARY 30, 2005

                                     BETWEEN

                              RETAIL VENTURES, INC.

                                       AND

                                    DSW INC.
                         _____________________________

                INSURANCE POLICIES MAINTAINED BY RETAIL VENTURES

      The Insurance Polices described in Part (a) below shall be maintained by
Retail Ventures, Inc. ("Retail Ventures") on behalf of DSW Inc. ("DSW") and its
Subsidiaries pursuant to the terms of the Shared Services Agreement between
Retail Ventures and DSW dated January 30, 2005, of which this Schedule is a
part. The insurance premiums related to such policies to be paid by DSW, or for
which Retail Ventures shall be reimbursed by DSW, are set forth or described in
Part (b) of this Schedule. Capitalized terms not otherwise defined in this
Schedule shall have the respective meanings assigned to them in the Shared
Services Agreement.

(a)   LIST OF INSURANCE POLICIES

      (i) Liability:
             Steadfast Insurance Co. #SCO3822186-02 - primary - $1MM/occurrence
             XL Insurance Co. #US00007102LI04A - umbrella - $25MM/occ/agg
             Ohio Casualty Co. #ECO(05)52976611, excess GL - $25MM/occ/agg
             American Guarantee # AEC5086837500- excess GL - $50MM/occ/agg
             Liberty Mutual Ins. #LQ1-B71-078764032 - excess GL - $50MM/occ/agg
             ACE Ins. Group #HXW776336 - excess GL - $25MM/occ/agg Great
             American Ins. #TUE357977102 - excess GL - $25MM/occ/agg

      (ii) Property
             FM Global Insurance #NB918 - $1,000,000,000 blanket limit
             Ace/Westchester #I20651258002 - excess flood - $10MM Great
             American #CPP5385581 & #ACG4285581 - excess flood - $5MM
             Arrowhead Group #303219EQ1 - excess earthquake - $3MM
             North Shore Mgmt. #NSM24310 - excess earthquake - $12MM
             FM Global #NB918 - Swanson primary earthquake - $1MM

                                       1
<PAGE>

      (iii) Automobile

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

      (iv) Cargo

             Lloyd's #CD044747 - primary cargo - $10MM/conveyance
             Lloyd's #CD044765 - excess cargo - $5MM/conveyance

      (v) Worker Compensation

             St. Paul Travelers #TC2JUB466K1644 - statutory limits St. Paul
             Travelers #TRJUB466K1656 - retro AZ, MA & WI only Ohio -
             Self-insured under SI20005342 West Virginia - State Fund

      (vi) Director and Officer Liability Insurance

             Chubb #___ - primary - $10MM
             XL Specialty #___ - excess D&O - $10MM
             AWAC US #___ - excess D&O - $10MM
             RSUI #___ - excess D&O - $10MM
             AXIS #___ - excess D&O - $10MM
             Arch Insurance Co. #___ - excess D&O - $10MM
             Houston Casualty #___ - excess D&O - $10MM
             Great American #___ - excess D&O - $10MM
             Liberty Mutual #___ - excess D&O - $10MM
             National Union (AIG) #___ - excess D&O - $10MM
             XL Specialty #___ - Side A coverage - $10MM

      (vii) Executive Protection Insurance

             National Union (AIG) #006082944 - crime - $10MM
             National Union (AIG) #647-5648 - special crime (K&R) - $10MM

      (viii) Other

             Fireman's Fund #MXI97900076 - motor truck cargo - $250K/vehicle
             XL Insurance #XLPUN1502904 - excess punitives - $25MM agg
             Magna Carta #MCPD201467 - excess punitives - $25MM agg

(b)   CALCULATION OF PREMIUM

      (i) DSW shall promptly pay or reimburse Retail Ventures 100% of premium
      expenses, deductibles or retention amounts Retail Ventures may incur in
      connection with Insurance Policies that relate solely to the DSW Business.

                                       2
<PAGE>

      (ii) DSW shall promptly pay or reimburse Retail Ventures 50% of premium
      expenses, deductibles or retention amounts Retail Ventures may incur in
      connection with Director and Officer Liability Insurance and Executive
      Protection Insurance.

      (iii) DSW shall promptly pay or reimburse Retail Ventures its
      proportionate share of premium expenses, deductibles or retention amounts
      Retail Ventures may incur in connection with Insurance Policies that
      relate the Retail Ventures Business and the DSW Business. The "Retail
      Ventures Business" means any business of Retail Ventures other than the
      DSW Business. DSW's proportionate will be calculated as follows:

      (IV) LIABILITY INSURANCE costs shall be prorated based on the ratio of
      DSW's sales and loss percentage as compared to total sales and loss.
      ["LOSS PERCENTAGE" IS DEFINED AS TOTAL INCURRED CLAIMS COST FOR THE PRIOR
      INSURANCE POLICY TERM. "INCURRED CLAIMS COST" EQUALS RESERVES PLUS PAID
      AMOUNTS.]

      (V) PROPERTY INSURANCE costs shall be prorated based on the ratio of the
      value of DSW property covered by the insurance policy as compared to the
      total value of all property covered by the insurance policy. ["VALUE OF
      PROPERTY" IS DEFINED AS RETAIL INVENTORY, FIXTURES, LEASEHOLDS, REAL
      PROPERTY AND BUSINESS INTERRUPTION.]

      (VI) AUTOMOBILE INSURANCE costs shall be charged on each insured vehicle
      owned or leased by DSW which is covered by the insurance policy.

      (VII) CARGO INSURANCE costs shall be prorated based on the ratio of the
      duties paid for DSW imports covered by the insurance policy as compared to
      the total duties paid for all imports covered by the insurance policy.

      (VIII) WORKERS COMPENSATION costs shall be prorated based on an actual per
      state rate against projected payrolls plus estimated claims cost per
      location.

      (IX) EXECUTIVE PROTECTION AND OTHERS--Executive Protection Insurance (or
      crime) and other costs shall be prorated based on the ratio of sales for
      DSW as compared to the total sales covered by the policy.

                                       3

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