Document:

EX-10.1

 

Exhibit 10.1

L E A S E

	 	 	 	 	 
	 

	 	LANDLORD:
	 	JLPK – LEVITTOWN NY, LLC
	 

	 	 	 	1800 Moler Road
	 

	 	 	 	Columbus, Ohio 43207
	 
	 	 	 	 
	 

	 	TENANT:
	 	DSW INC.
	 

	 	 	 	4150 East Fifth Avenue
	 

	 	 	 	Columbus, Ohio 43219
	 
	 	 	 	 
	 

	 	PREMISES:
	 	Approximately 17,050 square feet at
	 

	 	 	 	Caldor Shopping Center,
	 

	 	 	 	Levittown, New York

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. PREMISES
	 	 	1	 
	 
	 	 	 	 
	SECTION 2. TERM
	 	 	1	 
	 
	 	 	 	 
	SECTION 3. COMMENCEMENT DATE
	 	 	2	 
	 
	 	 	 	 
	SECTION 4. RENEWAL OPTIONS
	 	 	3	 
	 
	 	 	 	 
	SECTION 5. MINIMUM RENT
	 	 	3	 
	 
	 	 	 	 
	SECTION 6. PERCENTAGE RENT
	 	 	4	 
	 
	 	 	 	 
	SECTION 7. TITLE ENCUMBRANCES
	 	 	6	 
	 
	 	 	 	 
	SECTION 8. RIGHT TO REMODEL
	 	 	6	 
	 
	 	 	 	 
	SECTION 9. UTILITIES
	 	 	6	 
	 
	 	 	 	 
	SECTION 10. GLASS
	 	 	7	 
	 
	 	 	 	 
	SECTION 11. PERSONAL PROPERTY
	 	 	7	 
	 
	 	 	 	 
	SECTION 12. RIGHT TO MORTGAGE
	 	 	7	 
	 
	 	 	 	 
	SECTION 13. SUBLEASE OR ASSIGNMENT
	 	 	7	 
	 
	 	 	 	 
	SECTION 14. COMMON AREAS
	 	 	7	 
	 
	 	 	 	 
	SECTION 15. OPERATION OF COMMON AREAS
	 	 	8	 
	 
	 	 	 	 
	SECTION 16. COMMON AREA MAINTENANCE, TENANT’S SHARE
	 	 	8	 
	 
	 	 	 	 
	SECTION 17. EMINENT DOMAIN
	 	 	9	 
	 
	 	 	 	 
	SECTION 18. TENANT’S TAXES
	 	 	10	 
	 
	 	 	 	 
	SECTION 19. RISK OF GOODS
	 	 	10	 
	 
	 	 	 	 
	SECTION 20. USE AND OCCUPANCY
	 	 	10	 
	 
	 	 	 	 
	SECTION 21. NUISANCES
	 	 	12	 
	 
	 	 	 	 
	SECTION 22. WASTE AND REFUSE REMOVAL
	 	 	12	 
	 
	 	 	 	 
	SECTION 23. DESTRUCTION OF PREMISES
	 	 	12	 
	 
	 	 	 	 
	SECTION 24. LANDLORD REPAIRS
	 	 	13	 
	 
	 	 	 	 
	SECTION 25. TENANT’S REPAIRS
	 	 	13	 
	 
	 	 	 	 
	SECTION 26. COVENANT OF TITLE AND PEACEFUL POSSESSION
	 	 	14	 
	 
	 	 	 	 
	SECTION 27. TENANT’S AND LANDLORD’S INSURANCE; INDEMNITY
	 	 	15	 
	 
	 	 	 	 
	SECTION 28. REAL ESTATE TAXES
	 	 	17	 
	 
	 	 	 	 
	SECTION 29. TENANT’S INSURANCE CONTRIBUTION
	 	 	18	 
	 
	 	 	 	 
	SECTION 30. FIXTURES
	 	 	18	 
	 
	 	 	 	 
	SECTION 31. SURRENDER
	 	 	18	 
	 
	 	 	 	 
	SECTION 32. HOLDING OVER
	 	 	18	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 33. NOTICE
	 	 	19	 
	 
	 	 	 	 
	SECTION 34. DEFAULT
	 	 	19	 
	 
	 	 	 	 
	SECTION 35. WAIVER OF SUBROGATION
	 	 	21	 
	 
	 	 	 	 
	SECTION 36. LIABILITY OF LANDLORD; EXCULPATION
	 	 	21	 
	 
	 	 	 	 
	SECTION 37. RIGHTS CUMULATIVE
	 	 	22	 
	 
	 	 	 	 
	SECTION 38. MITIGATION OF DAMAGES
	 	 	22	 
	 
	 	 	 	 
	SECTION 39. SIGNS
	 	 	22	 
	 
	 	 	 	 
	SECTION 40. ENTIRE AGREEMENT
	 	 	22	 
	 
	 	 	 	 
	SECTION 41. LANDLORD’S LIEN – DELETED BY INTENTION
	 	 	23	 
	 
	 	 	 	 
	SECTION 42. BINDING UPON SUCCESSORS
	 	 	23	 
	 
	 	 	 	 
	SECTION 43. HAZARDOUS SUBSTANCES
	 	 	23	 
	 
	 	 	 	 
	SECTION 44. TRANSFER OF INTEREST
	 	 	24	 
	 
	 	 	 	 
	SECTION 45. ACCESS TO PREMISES
	 	 	24	 
	 
	 	 	 	 
	SECTION 46. HEADINGS
	 	 	24	 
	 
	 	 	 	 
	SECTION 47. NON-WAIVER
	 	 	24	 
	 
	 	 	 	 
	SECTION 48. SHORT FORM LEASE
	 	 	24	 
	 
	 	 	 	 
	SECTION 49. ESTOPPEL CERTIFICATE
	 	 	24	 
	 
	 	 	 	 
	SECTION 50. MASTER LEASE CONTINGENCIES
	 	 	25	 
	 
	 	 	 	 
	SECTION 51. PROVISIONS WITH RESPECT TO MASTER LEASE
	 	 	25	 
	 
	 	 	 	 
	SECTION 52. BROKER
	 	 	25	 
	 
	 	 	 	 
	SECTION 53. UNAVOIDABLE DELAYS
	 	 	26	 
	 
	 	 	 	 
	SECTION 54. TIMELY EXECUTION OF LEASE
	 	 	26	 
	 
	 	 	 	 
	SECTION 55. ACCORD AND SATISFACTION
	 	 	26	 
	 
	 	 	 	 
	SECTION 56. WAIVER OF JURY TRIAL
	 	 	26	 
	 
	 	 	 	 
	SECTION 57. LEASEHOLD FINANCING
	 	 	26	 
	 
	 	 	 	 
	SECTION 58. TENANT ALLOWANCE
	 	 	27	 

LIST OF EXHIBITS:

EXHIBIT “A-1” SITE PLAN

EXHIBIT “A-2” LEGAL DESCRIPTION

EXHIBIT “B” INTENTIONALLY OMITTED

EXHIBIT “C” TENANT’S WORK

EXHIBIT “C-1” ASBESTOS ABATEMENT CONTRACT

EXHIBIT “D” EXISTING USE EXCLUSIVES AND PROHIBITED USES

EXHIBIT “E” TENANT PROTOTYPICAL SIGNAGE

ii

 

L E A S E

     THIS AGREEMENT OF LEASE, made effective the 30th day of June, 2006 (the “Effective
Date”), by and between JLPK – Levittown NY, LLC, a Delaware limited liability company (hereinafter
referred to as “Landlord”), with offices at c/o Schottenstein Management Company, 1800 Moler Road,
Columbus, Ohio 43207, and DSW INC., an Ohio corporation (hereinafter referred to as “Tenant”) with
offices at 4150 East Fifth Avenue, Columbus, Ohio 43219.

W I T N E S S E T H:

SECTION 1. PREMISES

     (a) Landlord, in consideration of the rents to be paid and covenants and agreements to be
performed by Tenant, does hereby lease unto Tenant approximately 17,050 square feet of leasable
space (hereinafter referred to as the “premises” or “demised premises”) on the ground floor of an
existing multi-tenant building (the “Building”) in the shopping center commonly known as Caldor
Shopping Center on Route 24, City of Levittown, County of Nassau and State of New York (hereinafter
referred to as the “Shopping Center” or “Center”). The location, size, and area of the demised
premises and of the Shopping Center shall be substantially as shown on Exhibit “A-1”
attached hereto and made a part hereof. A legal description of the Shopping Center is shown on
Exhibit “A-2”, attached hereto and made a part hereof. Landlord shall not change the
configuration of the Shopping Center so as to materially adversely affect access to, visibility of
or parking for the premises without the prior written consent of Tenant, nor to the extent that it
has the authority to do so under the Master Lease (as hereinafter defined), shall Landlord consent
to or permit any such change in configuration.

     (b) Landlord holds a leasehold interest in the Building and the premises pursuant to the
Master Lease. For purposes hereof, the “Master Lease” is that certain Lease dated May 5, 1970, by
and between Miller Associates, a New York partnership (“Master Landlord”) and Children’s Town,
U.S.A., Inc. Landlord is the successor-in-interest to the interest of Children’s Town U.S.A., Inc.
in and to said Master Lease. This Lease is subject and subordinate to the Master Lease.

     (c) Landlord covenants and agrees that Landlord shall at all times comply with and fully
perform all of its obligations under the Master Lease. Landlord shall not, during the term hereof,
(i) do or suffer or permit anything to be done which would constitute a default under the Master
Lease or would cause the Master Lease to be canceled, terminated or forfeited as to the demised
premises by virtue of any rights of cancellation, termination, or forfeiture reserved or vested in
Master Landlord under the Master Lease, (ii) exercise any right reserved or vested in Landlord to
cancel, terminate or forfeit the Master Lease, including, without limitation, any termination
rights for casualty or condemnation or (iii) modify, amend or terminate the Master Lease.
Notwithstanding the foregoing, Tenant acknowledges that the Master Lease contains a recapture right
in favor of the Master Landlord allowing the Master Landlord to terminate the Master Lease as to
any space within the Building which ceases to be actively occupied and operated for business for a
continuous period of eighteen (18) months and recapture that vacant space. Landlord shall not be
required by virtue of this paragraph or any other provision of this Lease to prevent such a
recapture from occurring with respect to any space in the Building other than the demised premises,
or with respect to the demised premises in the event Tenant elects under Section 20 hereof to cease
operation (go dark).

     (d) Landlord agrees to forward to Tenant, upon receipt thereof from Master Landlord, a copy of
each notice of default received by Landlord in its capacity as tenant under the Master Lease.

SECTION 2. TERM

     The term of this Lease shall be for a period of fifteen (15) years beginning on the
commencement date (as hereinafter defined), unless earlier terminated or extended as herein
provided.

 

 

SECTION 3. COMMENCEMENT DATE

     (a) As herein used, the phrase “commencement date” shall mean the earlier of: (i) the day
Tenant opens for business in the demised premises or (ii) one hundred fifty (150) days after
Landlord has delivered possession of the demised premises to Tenant in the condition required by
the terms of Section 3(b) of this Lease (the “Required Condition”). Landlord agrees to deliver the
demised premises to Tenant in the Required Condition within thirty (30) days after the Effective
Date (the “Delivery Date”). If Landlord does not deliver the demised premises to Tenant as
required herein within three (3) days after the Delivery Date, Tenant may terminate this Lease or
defer delivery until January 2, 2007. If Tenant defers delivery and Landlord does not thereafter
deliver the demised premises to Tenant on or before January 2, 2007, Tenant may terminate this
Lease. In the event that the demised premises are not delivered to Tenant in the Required
Condition on or before the Delivery Date, the minimum rent due hereunder shall be adjusted so that,
after the Rent Commencement Date, the Tenant shall receive a credit against minimum rent thereafter
due Landlord equal to one (1) day of minimum rent for each day after the Delivery Date until
delivery of the demised premises is made to Tenant consistent with the terms of this Lease. Time
is of the essence regarding all dates set forth in this Section 3.

     (b) Possession of the demised premises shall not be deemed to have been given to Tenant until
Landlord has, at its sole cost and expense, delivered actual possession of the premises to Tenant
(i) in a water-tight, structurally sound condition, (ii) free of all Hazardous Substances, except
those to be removed/abated by Tenant as set forth in Section 3(e) below, (iii) with a new roof,
roof decking and roof system for the entire Building and (iv) free of any violation of laws,
ordinances, regulations and building restrictions (collectively, the “Required Condition”). All
work performed by Landlord to put the demised premises in the Required Condition and all Tenant’s
Work shall be performed in compliance with all applicable federal, state and local laws, rules,
regulations and code requirements.

     (c) Subject to the provisions of Section 53 hereof, Tenant shall, at its sole cost and
expense, (i) promptly after the demised premises has been delivered to Tenant in the Required
Condition, commence performance of the work described on Exhibit “C”, attached hereto and
made a part hereof (“Tenant’s Work”) and (ii) within one hundred fifty (150) days after such
delivery, cause Tenant’s Work to be completed. Landlord represents that all approvals of the
Master Landlord required under the Master Lease have been obtained and that all building and other
governmental permits necessary to perform Tenant’s Work can be obtained in the ordinary course of
business from the applicable governmental authority. In the event that Master Landlord takes any
action, or fails to take any necessary action, and as a result, necessary approvals/permits for the
performance of Tenant’s Work cannot be obtained, or additional costs are incurred as a result
thereof, or in the event that necessary governmental permits and approvals for Tenant’s Work cannot
be obtained, Tenant shall have the right to terminate this Lease by written notice to Landlord, in
which event Tenant shall have no further liability hereunder and Landlord shall reimburse Tenant
for all costs incurred by Tenant in connection therewith.

Tenant’s Work shall be performed lien free by Tenant, in a good and workmanlike manner (employing
materials of good quality) in compliance with all governmental requirements. In the event a
mechanic’s lien is filed against the demised premises or the Shopping Center on account of Tenant’s
Work, Tenant shall discharge or bond off same within thirty (30) days from the filing thereof. If
Tenant fails to discharge said lien, Landlord may bond off or pay same without inquiring into the
validity or merits of such lien, and all sums so advanced shall be paid on demand by Tenant as
additional rent. Prior to the date on which possession of the demised premises is delivered to
Tenant as aforesaid, Tenant shall have the right to enter the demised premises at its own risk
rent-free for the purpose of preparing for its occupancy, provided that it does not unreasonably
interfere with Landlord’s efforts to put the demised premises in the Required Condition.

     (d) From the date upon which the demised premises are delivered to Tenant for its work or such
earlier time that Tenant enters the demised premises to prepare for its occupancy until the
commencement date of the lease term, Tenant shall observe and perform all of its obligations under
this Lease (except Tenant’s obligation to operate and pay minimum rent, percentage rent and
additional rent.) In the event Tenant fails to open for business within one hundred eighty (180)
days after the date possession of the demised premises has been delivered

 

 

to Tenant, Landlord, in addition to any and all other available remedies, may require Tenant
to pay to Landlord, in addition to all other rent and charges herein, as liquidated damages and not
as a penalty, an amount equal to one day’s minimum rent for each day such failure to open
continues.

     (e) The parties acknowledge that asbestos is present in the premises, as revealed in that
certain Pre-Demolition Asbestos Survey Report more fully described in Section 43(b) hereof. Based
thereon, Tenant has entered into a contract for the abatement of asbestos at the premises, as more
fully set forth on Exhibit C-1, attached hereto. At such time as Tenant is invoiced for such
Report and/or for such abatement work, Tenant shall submits copies thereof to Landlord and Landlord
shall pay to Tenant the amount of such invoice(s) within ten (10) days thereafter. Such payments
by Landlord shall be in addition to payment of the Tenant Allowance as set forth in Section 58
hereof. Notwithstanding anything to the contrary contained herein, including Section 36 hereof, in
the event Landlord does not timely pay the amount of such invoice(s) to Tenant, (a) Landlord shall
pay to Tenant interest on such unpaid amounts at eighteen percent (18%) per annum and (b) Tenant
shall have the right to deduct any and all such amounts owed Tenant against all minimum rent and
all percentage rental (but no other additional rent components) thereafter due Landlord until such
time as Tenant has been credited the full amount of the invoice(s) plus applicable interest.

SECTION 4. RENEWAL OPTIONS 

     (a) Provided Tenant has fully complied with all of the terms, provisions, and conditions on
its part to be performed under this Lease and is not in default under this Lease, Tenant may, by
giving written notice to the Landlord at least six (6) months on or before the expiration of the
initial term of this Lease, extend such term for a period of five (5) years upon the same covenants
and agreements as are herein set forth, except that the minimum rent during the first renewal term
shall be increased to Forty-five Thousand One Hundred Eleven and 46/100th Dollars
($45,111.46) each month.

     (b) Provided Tenant has fully complied with all of the terms, provisions and conditions on its
part to be performed under this Lease, is not in default under this Lease and has exercised its
first option to renew hereunder, Tenant may, by giving written notice to the Landlord at least six
(6) months on or before the expiration of the first extended term of this Lease, extend such term
for an additional period of five (5) years upon the same covenants and agreements as the first
extended term except that the minimum rent (as increased pursuant to Section 4(a) above) during
this second renewal term shall be further increased to Fifty-two Thousand Two Hundred Fifteen and
63/100th Dollars ($52,215.63) each month.

     (c) Provided Tenant has fully complied with all of the terms, provisions and conditions on its
part to be performed under this Lease, is not in default under this Lease and has exercised its
second option to renew hereunder, Tenant may, by giving written notice to the Landlord at least six
(6) months on or before the expiration of the second extended term of this Lease, extend such term
for an additional period of five (5) years upon the same covenants and agreements as the second
extended term except that the minimum rent (as increased pursuant to Section 4(b) above) during
this third renewal term shall be further increased to Sixty Thousand Thirty and 21/100th
Dollars ($60,030.21) each month. The initial term and any renewal term(s) are hereinafter
collectively referred to as the “term”.

     (d) Landlord agrees that it shall timely exercise any and all options under the Master Lease
so as to extend the term thereof for a period of time equal to or greater than the term hereof, as
extended by the exercise by Tenant of any of its rights under this Section 3.

SECTION 5. MINIMUM RENT

     (a) Tenant agrees to pay to Landlord, as minimum rent for the demised premises, equal
consecutive monthly installments of Twenty-Nine Thousand Four Hundred Eighty-two and
29/100th Dollars ($29,482.29), commencing on the commencement date, and
continuing on the first day of each calendar month during years one (1) through five (5) of the
initial term of this Lease, monthly installments of Thirty-four Thousand Four Hundred Fifty-five
and 21/100th

 

 

Dollars ($34,455.21) each calendar month during years six (6) through ten (10), and monthly
installments of Thirty-Nine Thousand Four Hundred Twenty-eight and 13/100th Dollars
($39,428.13) each calendar month during years eleven (11) through fifteen (15) of the initial term
of this Lease. All such rental shall be payable to Landlord in advance, without prior written
notice or demand and without any right of deduction, abatement, counterclaim or offset whatsoever
(unless specifically permitted in this Lease). Except as expressly set forth herein to the
contrary, in no event shall Tenant have the right to offset more than twenty-five percent (25%) of
minimum rent in any calendar month, and Tenant shall have no right to offset against any additional
rent other than any percentage rent payable hereunder. As used in this Lease, the terms “minimum
rent” and “minimum rental” mean the minimum rental set forth in this Section 5(a). As used in this
Lease, the terms “rent and “rental” mean minimum rental, percentage rental, additional rental and
all other sums due and owing from Tenant to Landlord under this Lease.

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

     (c) In addition to minimum rent as set forth in this Section 5, Tenant shall initially pay to
Landlord, as additional rental, simultaneously with the payment of minimum rental called for under
Section 5(a) above, (i) the estimated monthly amount of Tenant’s Proportionate Share of Maintenance
Costs (provided for in Section 16 hereof), as reasonably estimated by Landlord, (ii) Nine and
35/100 Dollars ($9.35) per square foot, payable in equal monthly installments of Thirteen Thousand
Two Hundred Eighty-Four and 79/100 Dollars ($13,284.79) as the estimated monthly amount of Tenant’s
Proportionate Tax Share (provided for in Section 28 hereof) and (iii) Fifteen Cents ($0.15) per
square foot, payable in equal monthly installments of Two Hundred Thirteen and 13/100 Dollars
($213.13), as the estimated monthly amount of Tenant’s Proportionate Insurance Share (provided for
in Section 29 hereof).

     (d) Until further notice to Tenant, all rental payable under this Lease shall be payable to
Landlord and mailed to Landlord at c/o Schottenstein Management Company, 1800 Moler Road, Columbus,
Ohio 43207.

     (e) In the event any sums required under this Lease to be paid are not received when due, then
all such amounts shall bear interest from the due date thereof until the date paid at the rate of
interest equal to two percent (2%) over the prime rate in effect from time to time as established
by National City Bank, Columbus, Ohio (the “Interest Rate”), and shall be due and payable by Tenant
without notice or demand, Tenant shall pay the foregoing interest thereon in addition to all
default remedies of Landlord pursuant to Section 34 below.

SECTION 6. PERCENTAGE RENT

     (a) Beginning with the first lease year, Tenant shall pay to the Landlord, in addition to
minimum rent, upon the conditions and at the times hereinafter set forth, percentage rent equal to
two percent (2%) of Tenant’s gross sales (as hereinafter defined) in excess of the number obtained
by dividing (a) minimum rent for the applicable lease year by (b) the number .04. The annual
percentage rent shall be paid by Tenant to the Landlord within ninety (90) days after the end of
each lease year. Each such payment shall be accompanied by a statement signed by an authorized
representative of Tenant setting forth Tenant’s gross sales for such lease year. For purposes of
permitting verification by the Landlord of the gross sales reported by Tenant, the Landlord shall
have the right, not more than one (1) time per lease year, upon not less than five (5) business
days notice to Tenant, to audit during normal business hours in Tenant’s corporate office, Tenant’s
books and records relating to Tenant’s gross sales for a period of two (2) years after the end of
each lease year. Landlord agrees that no contingency fee auditor shall be employed by Landlord for
the purpose of conducting any such audit. If such an audit reveals that Tenant has understated its
gross sales by more than three percent (3%) for any lease year, Tenant, in addition to paying the
additional percentage rent due, shall pay the reasonable cost of the audit within thirty (30) days
of Tenant’s receipt of Landlord’s demand for the same and copies of all bills or invoices on which
such cost is based.

 

 

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

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

     (d) The term “gross sales” as used in this Lease is hereby defined to mean the gross dollar
aggregate of all sales or rental or manufacture or production of merchandise and all services,
income and other receipts whatsoever of all business conducted in, at or from any part of the
demised premises, whether for cash, credit, check, charge account, gift or merchandise certificate
purchased or for other disposition of value regardless of collection. Should any departments,
divisions or parts of Lessee’s business be conducted by any subleases, concessionaires, licensees,
assignees or others, then there shall be included in Lessee’s gross sales, all “gross sales” of
such department, division or part, whether the receipts be obtained at the demised premises or
elsewhere in the same manner as if such business had been conducted by Lessee. Gross sales shall
exclude the following: (i) any amount representing sales, use, excise or similar taxes; (ii) the
amount of refunds, exchanges or returns by customers or allowances to customers.

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

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

     (b) If Landlord, for any reason, questions or disputes any statement of percentage rental
prepared by Tenant, then Landlord, at its own expense, may employ such accountants as Landlord may
select to audit and determine the amount of gross sales for the period or periods covered by such
statements. If the report of the accountants employed by Landlord shall show any additional
percentage rental payable by Tenant, then Tenant shall pay to Landlord such additional percentage
rental plus interest at one (1) point over the prime rate, commencing on the date such percentage
rentals should have been paid, within thirty (30) days after such report has been forwarded to
Tenant, unless Tenant shall, within said thirty (30) day period, notify Landlord that Tenant
questions or disputes the correctness of such report. In the event that Tenant questions or
disputes the correctness of such report, the accountants employed by Tenant and the accountants
employed by Landlord shall endeavor to reconcile the question(s) or dispute(s) within thirty (30)
days after the notice from Tenant questioning or disputing the report of Landlord’s accountants.
In the event that it is finally determined by the parties that Tenant has understated percentage
rent for any Lease year by three percent (3%) or more, Tenant shall pay the cost of the audit.
Furthermore, if Tenant’s gross sales cannot be verified due to the insufficiency or inadequacy of
Tenant’s records, then Tenant shall pay the cost of the audit. The cost of any audit resulting
from failure to report percentage rent after written notification of default shall be at the sole
cost of Tenant.

 

 

SECTION 7. TITLE ENCUMBRANCES

     Tenant’s rights under this Lease are subject and subordinate to those title matters set forth
in Landlord’s owner’s title insurance commitment issued by First American Title Insurance Company
of New York, being Title No.NCS-209129-CHI1, dated January 15, 2006, specifically including but not
limited to the terms and conditions of a certain Agreement made as of July 30, 1970 among Nassau
Mall, Inc., Miller Associates, and Supermarkets General Corporation recorded in Liber 8163, Page 85
of Nassau County, New York real estate records (“OEA”). Tenant agrees that it shall abide by the
terms and conditions of the OEA.

SECTION 8. RIGHT TO REMODEL

     (a) Tenant may, at Tenant’s expense, make repairs and alterations to the interior
non-structural portions of the demised premises and remodel the interior of the demised premises,
in such manner and to such extent as may from time to time be deemed necessary by Tenant for
adapting the demised premises to the requirements and uses of Tenant and for the installation of
its fixtures, appliances and equipment. Any structural or exterior alteration may only be made by
Tenant with the prior written approval of Landlord and Master Landlord, to the extent required by
the provisions of the Master Lease, which approval may be granted or withheld in Landlord’s sole
discretion. All plans for any structural alterations shall be submitted to Landlord for
endorsement of its approval prior to commencement of work. Upon Landlord’s request, Tenant shall
be obligated, if it remodels and/or alters the demised premises, to restore the demised premises
upon vacating the same. Tenant will indemnify and save harmless the Landlord from and against all
mechanics liens or claims by reason of repairs, alterations or improvements which may be made by
Tenant to the demised premises. Inasmuch as any such alterations, additions or other work in or to
the demised premises may constitute or create a hazard, inconvenience or annoyance to the public
and other tenants in the Shopping Center, Tenant shall, if so directed in writing by Landlord,
erect barricades, temporarily close the demised premises, or affected portion thereof, to the
public or take whatever measures are necessary to protect the building containing the demised
premises, the public and the other tenants of the Shopping Center for the duration of such
alterations, additions or other work. If Landlord determines, in its sole judgment, that Tenant
has failed to take any of such necessary protective measures, and Tenant fails to cure same within
ten (10) days after notice thereof, Landlord may do so and Tenant shall reimburse Landlord for the
cost thereof within ten (10) days after Landlord bills Tenant therefor.

     (b) All such work, including Tenant’s Work pursuant to Exhibit “C” shall be performed
lien free by Tenant. In the event a mechanic’s lien is filed against the premises or the Shopping
Center, Tenant shall discharge or bond off same within thirty (30) days from the filing thereof.
If Tenant fails to discharge said lien, Landlord may bond off or pay same without inquiring into
the validity or merits of such lien, and all sums so advanced shall be paid on demand by Tenant as
additional rent.

SECTION 9. UTILITIES

     (a) The Tenant agrees to be responsible and pay for all public utility services rendered or
furnished to the demised premises during the term hereof, including, but not limited to, heat,
water, gas, electric, steam, telephone service and sewer services, together with all taxes, levies
or other charges on such utility services when the same become due and payable. Landlord will
separately meter or submeter utilities prior to delivery. Landlord shall provide, or cause to be
provided, all such utility services to the premises during the term of this Lease. Tenant shall be
responsible for all utility services and costs inside the premises. Landlord shall not be liable
for the quality or quantity of or interference involving such utilities unless due directly to
Landlord’s negligence.

     (b) During the term hereof, whether the demised premises are occupied or unoccupied, Tenant
agrees to maintain heat sufficient to heat the demised premises so as to avert any damage to the
demised premises on account of cold weather.

 

 

SECTION 10. GLASS

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

SECTION 11. PERSONAL PROPERTY

     The Tenant further agrees that all personal property of every kind or description that may at
any time be in or on the demised premises shall be at the Tenant’s sole risk, or at the risk of
those claiming under the Tenant, and that the Landlord shall not be liable for any damage to said
property or loss suffered by the business or occupation of the Tenant caused in any manner
whatsoever.

SECTION 12. RIGHT TO MORTGAGE

     (a) Landlord reserves the right to subject and subordinate this Lease at all times to the lien
of any leasehold deed of trust, mortgage or mortgages now or hereafter placed upon Landlord’s
interest in the Master Lease; provided, however, that no default by Landlord, under any deed of
trust, mortgage or mortgages, shall affect Tenant’s rights under this Lease, so long as Tenant
performs the obligations imposed upon it hereunder and is not in default hereunder, and Tenant
attorns to the holder of such deed of trust or mortgage, its assignee or the purchaser at any
foreclosure sale. Any such subordination shall be contingent upon Tenant receiving a commercially
reasonable non-disturbance agreement. It is a condition, however, to the subordination and lien
provisions herein provided, that Landlord shall procure from any such mortgagee an agreement in
writing, which shall be delivered to Tenant or contained in the aforesaid subordination agreement,
providing in substance that so long as Tenant shall faithfully discharge the obligations on its
part to be kept and performed under the terms of this Lease and is not in default under the terms
hereof, its tenancy will not be disturbed nor this Lease affected by any default under such
mortgage.

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

SECTION 13. SUBLEASE OR ASSIGNMENT

     (a) Subject to the provisions of the Master Lease, Tenant may assign Tenant’s interest in this
Lease or sublet all or any portion of the demised premises for any lawful retail use.

     Tenant may grant licenses and/or concessions within the demised premises. Any such assignee
or Tenant shall be bound by the terms of this Lease. Tenant shall deliver to Landlord in the
ordinary course of its business an instrument whereby the assignee or entity succeeding to Tenant’s
interest hereunder agrees to be bound by the terms of this Lease.

     In the event of any assignment of this Lease or subletting of the demised premises, in whole
or in part, Tenant shall remain fully and primarily liable hereunder.

     (b) Landlord may assign Landlord’s interest in this Lease without the consent of Tenant (a) to
any entity to which Landlord transfers its Master Lease leasehold interest in the Master Lease
provided such entity (i) agrees in writing to be bound by all the terms of this Lease and (ii) such
assignment is pursuant to a bona fide arm’s length transaction not designed to reduce Landlord’s
liability or to otherwise exempt Landlord from any provision of this Lease or (b) subject to
Section 12, as security for any indebtedness undertaken by Landlord.

SECTION 14. COMMON AREAS

     Common areas means all areas and facilities in the Shopping Center which are designated as
“Common Facilities” under the Master Lease or otherwise provided and so designated by

 

 

Master
Landlord and made available by Master Landlord, or Landlord to the extent Landlord has
the right to do so under the Master Lease, in the exercise of good business judgment for the
common use and benefit of tenants of the Shopping Center and their customers, employees and
invitees. Common areas shall include (to the extent the same are constructed), but not be limited
to, the parking areas, sidewalks, landscaped areas, corridors, stairways, boundary walls and
fences, incinerators, truckways, service roads, and service areas not reserved for the exclusive
use of Tenant or other tenants.

SECTION 15. OPERATION OF COMMON AREAS

     (a) Subject to the provisions of the Master Lease, Landlord shall at all times have exclusive
control of the common areas and may at any time and from time to time: (i) promulgate, modify and
amend reasonable rules and regulations for the use of the common areas, which rules and regulations
shall be binding upon the Tenant upon delivery of a copy thereof to the Tenant; (ii) temporarily
close any part of the common areas, including but not limited to closing the streets, sidewalks,
road or other facilities to the extent necessary to prevent a dedication thereof or the accrual of
rights of any person or of the public therein; (iii) exclude and restrain anyone from the use or
occupancy of the common areas or any part thereof except bona fide customers and suppliers of the
tenants of the Shopping Center who use said areas in accordance with the rules and regulations
established by Landlord; and (iv) engage others to operate and maintain all or any part of the
common areas, on such terms and conditions as Landlord shall, in its sole judgment, deem reasonable
and proper.

     (b) Subject to the rights granted in the Master Lease to conduct sidewalk sales and otherwise
use the common areas for sales purposes, Tenant shall keep all common areas free of obstructions
created or permitted by Tenant. Except as aforesaid, Tenant shall permit the use of the common
areas only for normal parking and ingress and egress by its customers and suppliers to and from the
demised premises. If in Landlord’s opinion unauthorized persons are using any of the common areas
by reason of Tenant’s occupancy of the demised premises, Landlord shall have the right at any time
to remove any such unauthorized persons from said areas or to restrain unauthorized persons from
said areas. Landlord, Tenant, and others constructing improvements or making repairs or
alterations in the Shopping Center shall have the right to make reasonable use of portions of the
common areas.

SECTION 16. COMMON AREA MAINTENANCE, TENANT’S SHARE

     (a) Tenant shall pay as additional rental, simultaneously with the payment of minimum rental
called for under Section 5(a), the monthly amount reasonably estimated by Landlord as Tenant’s
Proportionate Share of the “Maintenance Costs” (as defined in Section 16(c) below) for the
operation and maintenance of the common areas as set forth in Section 5(c).

     (b) The Maintenance Costs for the common areas shall be computed on an accrual basis, under
generally accepted accounting principles, and shall include all costs of operating, maintaining,
repairing and replacing the common areas, including by way of example but not limitation: (i) cost
of labor (including worker’s compensation insurance, employee benefits and payroll taxes); (ii)
materials, and supplies used or consumed in the maintenance or operation of the common area; (iii)
the cost of operating and repairing of the lighting; (iv) cleaning, painting, removing of rubbish
or debris, snow and ice, private security services, and inspecting the common areas; (v) the cost
of repairing and/or replacing paving, curbs, walkways, markings, directional or other signs;
landscaping, and drainage and lighting facilities; (vi) rental paid for maintenance of machinery
and equipment; (vii) cost of commercial general liability insurance and property insurance for
property in the common areas which are not part of the building and/or demised premises; and (viii)
a reasonable allowance to Landlord for Landlord’s supervision, which allowance shall not in an
accounting year exceed fifteen percent (15%) of the total of all Maintenance Costs for such
accounting year (all of the foregoing are collectively referred to herein as “Maintenance Costs”).
Notwithstanding the foregoing, costs of a capital nature, including all capital improvements,
alterations, repairs and/or replacements, shall not be included in Maintenance Costs, except for
repaving costs as set forth in (v) above, and the cost of all roof repairs and replacements to the
Building, for which the yearly depreciation, calculated on a straight-line basis and amortized over
the useful life of such item in accordance with IRS code guidelines, shall be included as a
Maintenance Cost, but in no event shall such amortization be over less than five (5) years.

 

 

     (c) Landlord shall maintain accurate and detailed records of all Maintenance Costs for the
common areas in accordance with generally accepted accounting principles. For purposes of this
section, “Tenant’s Proportionate Share of Maintenance Costs” shall be the product of the applicable
cost or expense, multiplied by a fraction, the numerator of which shall be the gross leasable area
(expressed in square feet) of the demised premises and the denominator of which shall be the gross
leasable area (expressed in square feet) of all leasable space in the Building. Tenant’s
Proportionate Share is presently Thirty-six and 11/100th Percent (36.11%), which amount
is subject to change from time to time during the term of this Lease. Tenant acknowledges that,
notwithstanding the fact that there are other tenants of the Shopping Center, Tenant and the other
occupants of the Building (or, if any portion of the Building is not occupied, Landlord) shall, in
the aggregate, be responsible for one hundred percent (100%) of the Maintenance Costs for the
Center.

     (d) The actual amount of Tenant’s Proportionate Share of all Maintenance Costs shall be
computed by Landlord within one hundred eighty (180) days after the end of each accounting year
(which Landlord may change from time to time). At this time Landlord shall furnish to Tenant a
statement showing in reasonable detail the actual Maintenance Costs incurred during such accounting
year and Tenant’s Proportionate Share thereof (prorated for any partial Lease year, with
appropriate adjustments to reflect any change in the floor area of the premises or the gross
leasable area of the Building occurring during such accounting year). Any excess payments from
Tenant shall be applied to the next installments of the Maintenance Costs hereunder, or refunded by
Landlord. Any underpayments by Tenant shall be paid to Landlord within thirty (30) days after
receipt of such reconciliation statement. Tenant’s estimated monthly Maintenance Cost hereunder
may be adjusted by written notice from Landlord.

     (e) If Tenant, for any reason in the exercise of good business judgment, questions or disputes
any statement of Maintenance Costs prepared by Landlord, then Tenant, at its own expense, may
employ such accountants as Tenant may select to review Landlord’s books and records solely with
respect to Maintenance Costs during the prior two Lease years and to determine the amount of
Maintenance Costs for the period or periods covered by such statements. If the report of the
accountants employed by Tenant shall show any overcharge paid by Tenant, then Tenant shall receive
a credit from Landlord for such difference. Any underpayment shall be paid by Tenant. Tenant
agrees that no contingency fee auditors shall be employed by Tenant for the purpose of conducting
any such audit. In the event that Landlord questions or disputes the correctness of such report,
the accountants employed by Tenant and the accountants employed by Landlord shall endeavor to
reconcile the question(s) or dispute(s) within thirty (30) days after the notice from Tenant
questioning or disputing the report of Landlord’s accountants. In the event that it is finally
determined by the parties that Landlord has overstated Maintenance Costs for any Lease year by
three percent (3%) or more, Landlord shall pay the reasonable cost of the audit. Furthermore, if
Landlord’s Maintenance Costs cannot be verified due to the insufficiency or inadequacy of
Landlord’s records, then Landlord shall pay the cost of the audit.

SECTION 17. EMINENT DOMAIN

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

     (b) In the event that only a portion of the demised premises, not exceeding twenty percent
(20%) of same, shall be so taken or condemned, and the portion of the demised premises not taken
can be repaired within ninety (90) days from the date of which possession is taken for the public
use so as to be commercially fit for the operation of Tenant’s business, the Landlord at its own
expense shall so repair the portion of the demised premises not taken and there shall be an
equitable abatement of rent for the remainder of the term and/or extended terms. The entire award
paid on account thereof shall be paid to the Landlord. If the portion of the demised premises not
taken cannot be repaired within ninety (90) days from the date of which possession is taken so as
to be commercially fit for the operation of Tenant’s business, then this Lease shall
terminate and become null and void from the time possession of the portion taken is required
for

 

 

public use, and from that date on the parties hereto shall be released from all further
obligations hereunder except as herein stated and Tenant shall have no claim for any compensation
on account of its leasehold interest. No other taking, appropriation or condemnation shall cause
this Lease to be terminated. Any such appropriation or condemnation proceedings shall not operate
as or be deemed an eviction of Tenant or a breach of Landlord’s covenant of quiet enjoyment and
Tenant shall have no claim for any compensation on account of its leasehold interest.

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

     (d) The rights of Landlord and Tenant set forth in this Section 17 are subject to the rights
of the Master Landlord to terminate the Master Lease, as therein provided, in which event this
Lease shall terminate simultaneously.

SECTION 18. TENANT’S TAXES

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

SECTION 19. RISK OF GOODS

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

SECTION 20. USE AND OCCUPANCY

     (a) Tenant agrees to initially open and operate a DSW for the retail sales of shoes and other
footwear in the demised premises, fully staffed and stocked and equivalent to other DSW stores
operated by Tenant in the State of New York (the “Permitted Use”). Tenant may thereafter change
its use to any other lawful retail use, subject to (i) any restriction on use imposed by the Master
Lease, (ii) those exclusives and prohibited uses set forth on Exhibit “D”, attached hereto
and made a part hereof, which are the exclusives and prohibited uses in effect for the Building as
of the date hereof, for so long as and to the extent said exclusives and prohibited uses are still
in full force and effect, and (iii) exclusives and prohibited uses hereafter granted for tenants
leasing more than 20,000 square feet of space elsewhere within the Building, for so long as and to
the extent said exclusives are still in full force and effect.

     Landlord represents and warrants to Tenant that there is no restriction in the OEA, Master
Lease or otherwise on the use of the demised premises by Tenant for the Permitted Use.
Notwithstanding the foregoing, however, Tenant acknowledges that a claim may be asserted under the
OEA that a restriction currently exists against the operation of a department store or discount
department store in the Shopping Center. In the event that such a claim is asserted Landlord shall
not be in default of the foregoing representation, but nevertheless agrees that it shall indemnify,
defend and hold Tenant harmless in the event that Tenant incurs any loss, cost, damage or expense
(including reasonable attorney’s fees and expenses) on account of any claim which is or may be
asserted that Tenant’s use of the demised premises for the Permitted Use is not permitted or is
restricted in any material manner by the terms of the OEA.

     (b) For so long as Tenant is continuously and regularly operating its business in the demised
premises, Landlord will not lease any space within the Building or permit any space within the
Building to be used by any person, persons, partnership or entity who devotes five percent (5%) or
more of its selling area to the sale of footwear (the “Exclusive Use”). The foregoing limitation
shall not apply to typical shoe departments found in department stores, junior department stores,
general merchandise and discount stores, and clothing retailers, such as

 

 

Target, Marshalls and similar type stores. Tenant acknowledges that this Section 20(b)
applies only to the Building and that Master Landlord is not restricted by the terms hereof.

     (c) Tenant shall at all times conduct its operations on the demised premises in a lawful
manner and shall, at Tenant’s expense, comply with all laws, rules, orders, ordinances, directions,
regulations, and requirements of all governmental authorities, now in force or which may hereafter
be in force, which shall impose any duty upon Landlord or Tenant with respect to the business of
Tenant and the use, occupancy or alteration of the demised premises. Tenant shall comply with all
requirements of the Americans with Disabilities Act, and shall be solely responsible for all
alterations within the demised premises in connection therewith. Tenant covenants and agrees that
the demised premises shall not be abandoned or left vacant and that only minor portions of the
demised premises shall be used for office or storage space in connection with Tenant’s business
conducted in the demised premises.

     Without being in default of this Lease, Tenant shall have the right to cease operating (go
dark) at any time and for whatever reason after the first day of operations. Notwithstanding the
foregoing, Tenant’s right to vacate (go dark), shall not release or excuse the Tenant from any
obligations or liabilities, including the payment of minimum rent and additional rent and other
charges, under this Lease without the express written consent of Landlord. In the event Tenant
fails to (i) open and operate within ninety (90) days after delivery of the demised premises or
(ii) operate for one hundred twenty (120) or more consecutive days, Landlord shall have the right,
effective upon thirty (30) days prior written notice to Tenant, to terminate the Lease as
Landlord’s sole remedy, provided that if Tenant recommences operating fully stocked in
substantially all of the premises within such thirty (30) days, Landlord’s termination shall be
null and void. In the event Tenant fails to open and operate as provided above or shall cease
operating as provided above, Landlord’s sole remedy on account thereof shall be limited to the
right to elect to recapture the premises and terminate the Lease, whereupon there shall be no
further liability of the parties hereunder. Such termination shall be effective upon written
notice to Tenant any time prior to Tenant reopening for business in the demised premises.
Provided, however, in the event Landlord has not so elected to recapture, Tenant shall have right
to notify Landlord of Tenant’s intention to reopen for business in the demised premises within
sixty (60) days, followed by Tenant’s actually reopening for business fully stocked in
substantially all of the demised premises within such sixty (60) day period, which notice and
actual reopening shall toll Landlord’s right to recapture. Tenant acknowledges that if it ceases
operating at the demised premises for a continuous period of eighteen (18) months, the Master
Landlord may terminate the Master Lease as to the demised premises, and that if the Master Landlord
exercises that right, this Lease shall automatically terminate.

     (d) Landlord and Tenant each agree that during the term of this Lease, it shall not use or
permit to be used any space in the Building for any use prohibited by the Master Lease or for the
operation of a bingo parlor, bar, tavern, restaurant, cocktail lounge, adult book or adult video
store (defined for the purposes hereof as a store devoting ten percent (10%) or more of its floor
space to offering books and/or video materials for sale or for rent which are directed to or
restricted to adult customers due to sexually explicit subject matter or for any other reason
making it inappropriate for general use), adult theater or “strip-tease” establishment, automotive
maintenance or automotive repair facility, warehouse, car wash, pawn shop, check cashing service,
establishment selling second hand goods, flea market, entertainment or recreational facility (as
defined below), training or educational facility (as defined below); the renting, leasing, selling
or displaying of any boat, motor vehicle or trailer; industrial or manufacturing purposes; a
carnival, circus or amusement park; a gas station, facility for the sale of paraphernalia for use
with illicit drugs, funeral home, blood bank or mortuary, gambling establishment, banquet hall,
auditorium or other place of public assembly, second-hand or surplus store, gun range; the sale of
fireworks; a veterinary hospital or animal raising facility; the storage of goods not intended to
be sold from the Center; a video rental store, karate center, central laundry or dry cleaning
plant, supermarket or any facility which is illegal or dangerous, constitutes a nuisance, emits
offensive odors, fumes, dust or vapors or loud noise or sounds or is inconsistent with community
oriented shopping centers. For the purposes of this Section 20(d), the phrase “entertainment or
recreational facility” shall include, without limitation, a movie or live theater or cinema,
bowling alley, skating rink, gym, health spa or studio, dance hall or night club, billiard or pool
hall, massage parlor, health club, game parlor or video arcade (which shall be defined as any store
containing more than five (5) electronic games) or any other facility operated solely for
entertainment purposes (such as a “laser tag” or “virtual reality” theme

 

 

operation). For the
purposes of this Section 20(d), the phrase “training or educational facility” shall include,
without limitation, a beauty school, nail salon, barber college, reading room, place of instruction
or any other operation catering primarily to students or trainees as opposed to customers.

SECTION 21. NUISANCES

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

SECTION 22. WASTE AND REFUSE REMOVAL

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

SECTION 23. DESTRUCTION OF PREMISES

     (a) Landlord shall at all times during the term of this Lease carry property insurance on the
Building, including the “Structural Portions” (defined in Section 24(a) below) and common utility
lines up to the point they serve individual tenant’s premises. Landlord shall be under no
obligation to maintain insurance on any improvements installed by or for the benefit of Tenant’s
use of the premises or otherwise owned by Tenant. Landlord may elect to self-insure its
obligations hereunder and/or use whatever deductibles as Landlord deems appropriate, in its sole
discretion.

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

     (c) In the event the demised premises, because of such damage or destruction, cannot be
repaired and restored to a tenantable condition with reasonable dispatch within one hundred fifty
(150) days from the date of receipt of insurance proceeds for such damage or destruction, as
reasonably determined by an independent contractor selected by Landlord, Tenant or Landlord may, at
their option, terminate this Lease within sixty (60) days following receipt of such contractor’s
determination; further, in the event that this Lease is not terminated as above provided, but the
premises are not restored within one hundred fifty (150) days from the date of receipt of insurance
proceeds, Tenant may terminate this Lease by notice given to Landlord after the expiration of such
one hundred fifty (150) day period but prior to the repair and restoration of same and thereupon
Landlord and Tenant shall be released from all future liability and obligations under this Lease.

     (d) If one-third (1/3) or more of the ground floor area of the demised premises are damaged or
destroyed during the last two (2) years of the original or any extended term of this Lease,
Landlord shall have the right to terminate this Lease by written notice to Tenant within sixty (60)
days following such damage or destruction, unless Tenant shall, within thirty (30) days following
receipt of such notice, offer to extend the term of this Lease for an additional period of
five (5) years from the date such damage or destruction is repaired and restored. If Tenant

 

 

makes said offer to extend, Landlord and Tenant shall determine the terms and conditions of said
extension within thirty (30) days thereafter or Tenant’s offer shall not be deemed to prevent
Landlord from canceling this Lease. If such terms and conditions have been mutually agreed to by
the parties, then Landlord shall accept Tenant’s offer and shall repair and restore the demised
premises with reasonable dispatch thereafter.

     (e) If Landlord is required or elects to repair and restore the demised premises as herein
provided, Tenant shall repair or replace its stock in trade, trade fixtures, furniture, furnishings
and equipment and other improvements including floor coverings, and if Tenant has closed, Tenant
shall promptly reopen for business. Anything contained in this Section 23 to the contrary
notwithstanding, Landlord’s restoration and repair obligations under Section 23 shall in no event
include restoration or repair of Tenant’s Work or improvements.

     (f) The rights of Landlord and Tenant under this Section 23 are subject to the rights of
Master Landlord to terminate the Master Lease pursuant to the provisions thereof, in which event
this Lease shall terminate simultaneously therewith.

SECTION 24. LANDLORD REPAIRS

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

     (b) Notwithstanding the provisions of Section 24(a) above, Landlord shall not be obligated to
repair the following: (i) the exterior or interior of any doors, windows, plate glass, or showcases
surrounding the demised premises or the store front; (ii) HVAC unit(s), equipment and systems
(including all components thereof) in the demised premises; or (iii) damage to Tenant’s
improvements or personal property caused by any casualty, burglary, break-in, vandalism, acts of
terrorism, war or act of God. Landlord shall, in any event, have ten (10) days after notice from
Tenant stating the need for repairs to complete same, or commence and proceed with due diligence to
complete same. Nevertheless, during the term of this Lease, Landlord shall be obligated to replace
all HVAC components as and when necessary so long as Tenant has fulfilled its obligations under
Section 25(a) (ii) below, and provided such replacements did not arise from (x) repairs,
installations, alterations, or improvements made by or for Tenant or anyone claiming under Tenant,
or (y) the fault or misuse of Tenant or anyone claiming under Tenant. Except as specifically set
forth in this Lease, Tenant expressly hereby waives the provisions of any law permitting repairs by
a tenant at Landlord’s expense.

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

     (d) Landlord shall assign to Tenant all warranties covering all matters required by the terms
hereof to be repaired and maintained by Tenant.

SECTION 25. TENANT’S REPAIRS

     (a) Tenant shall keep and maintain, at Tenant’s expense, all and every other part of the
demised premises in good order, condition and repair, including, by way of example but not
limitation: (i) all leasehold improvements; (ii) all HVAC unit(s), equipment and systems (including
all components thereof) serving the demised premises; (iii) interior plumbing and sewage
facilities; (iv) all interior lighting; (v) electric signs; (vi) all interior walls; (vii) floor
coverings; (viii) ceilings; (ix) appliances and equipment; (x) all doors, exterior entrances,
windows and window moldings; (xi) plate glass; (xii) signs and showcases surrounding and

 

 

within the demised premises; (xiii) the store front; (xiv) sprinkler systems including supervisory
alarm service in accordance with National Fire Protection Association standards and current local
and state fire protection standards to ensure property operation, and as required by Section 27(b)
below.

     (b) Sprinkler systems, if any, located in Tenant’s area shall be maintained in accordance with
National Fire Protection Association standards to ensure proper operation. Sprinkler control
valves (interior and exterior) located in Tenant’s area shall be monitored by supervisory alarm
service. In the event local or state codes do not require alarm systems, Tenant shall provide
alarm service on all sprinkler systems to detect water flow and tampering with exterior and
interior main control valves of the sprinkler system servicing Tenant’s premises. Moreover, it
shall be Tenant’s responsibility to contact the Landlord’s property manager, Chuck Seal, at (614)
449-6853, in the event the sprinkler system in the demised premises is ever shut off for any
reason, and advise same of any damage occasioned or caused by the actions of Tenant, its agents,
invitees, or employees, and/or as a result of Tenant’s repair obligations hereunder. In the event
fifty percent (50%) or more of the total number of sprinkler heads require replacement at any one
time as part of ordinary maintenance, but excluding repairs or replacements that arise from (x)
repairs, installations alterations, or improvements made by or for Tenant or anyone claiming under
Tenant, or (y) the fault or misuse of Tenant or anyone claiming under Tenant, such cost shall be
fifty percent (50%) borne by Landlord and fifty percent (50%) borne by Tenant. Tenant, at Tenant’s
sole cost and expense, shall replace all sprinkler heads due to repairs, installations,
alterations, or improvements made by or for Tenant or anyone claiming under Tenant, the fault or
misuse of Tenant or anyone claiming under Tenant, painting or environmental exposure from Tenant’s
operations. All other costs of maintaining the sprinkler system in the demised premises shall be
paid by Tenant.

     (c) If Landlord deems any repair which Tenant is required to make hereunder to be necessary,
Landlord may demand that Tenant make such repair immediately. If Tenant refuses or neglects to
make such repair and to complete the same with reasonable dispatch, Landlord may make such repair
and Tenant shall, on demand, immediately pay to Landlord the cost of said repair, together with
annual interest at the Interest Rate, unless it is thereafter determined that such repair was not
necessary. Landlord shall not be liable to Tenant for any loss or damage that may accrue to
Tenant’s stock or business by reason of such work or its results.

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

     (e) Tenant shall pay promptly when due the entire cost of work in the demised premises
undertaken by Tenant under this Lease (including, but not limited to, Tenant’s Work and/or
alterations permitted under Section 8 of this Lease) so that the demised premises and the Shopping
Center shall at all times be free of liens for labor and materials arising from such work; to
procure all necessary permits before undertaking any such work; to do all of such work in a good
and workmanlike manner, employing materials of good quality; to perform such work only with
contractors previously reasonably approved of in writing by Landlord; to comply with all
governmental requirements; and save Landlord and its agents, officers, employees, contractors and
invitees harmless and indemnified from all liability, injury, loss, cost, damage and/or expense
(including reasonable attorneys’ fees and expenses) in respect of any injury to, or death of, any
person, and/or damage to, or loss or destruction of, any property occasioned by or growing out of
any such work.

SECTION 26. COVENANT OF TITLE AND PEACEFUL POSSESSION

     So long as Tenant is not in default hereunder beyond applicable notice and cure periods, but
subject to the terms and conditions of this Lease, Tenant shall have quiet and peaceful possession
of the premises from and against anyone acting by, through or under Landlord, and, except for such
obligations which are to be performed by Tenant under this Lease, Landlord shall perform all of its
obligations under the Master Lease. Landlord expressly warrants and represents to Tenant that: (i)
the Master Lease is a valid and binding lease agreement which is in full force and effect and is
enforceable against Landlord and Master Landlord in accordance with its terms; (ii) Landlord has a
good and valid leasehold interest in the premises pursuant to the
Master Lease; (iii) no event has occurred, which with the giving of notice or the passage of
time would constitute a default by either Master Landlord or Landlord under the Master Lease; (iv)
a

 

 

true, correct and complete copy of the Master Lease has been provided to Tenant; and (v) Landlord
has the right to enter into this Lease.

SECTION 27. TENANT’S AND LANDLORD’S INSURANCE; INDEMNITY

     (a) Tenant’s Property Insurance. Tenant agrees to procure and maintain during the demised
term a property insurance policy written on the causes of loss-special form (also referred to as
the special extended coverage form), or the most broad property insurance form then available,
insuring against loss of, or damage to, Tenant’s property, in, on or about the demised premises.
Such property insurance shall include coverage (whether by additional policies, endorsements or
otherwise): (i) against earthquake and flood; (ii) for plate glass; (iii) in an amount equal to the
full insurable replacement cost, without deduction for depreciation; (iv) with an agreed valuation
provision in lieu of, or in an amount sufficient to satisfy, any co-insurance clause; (v) against
inflation (also known as inflation guard); (vi) for any costs due to ordinances or laws; and (vii)
as Landlord may from time to time reasonably require Tenant to procure and maintain. Landlord
shall not be liable for any damage to Tenant’s property in, on or about the demised premises caused
by fire or other insurable hazards regardless of the nature or cause of such fire or other
casualty, and regardless of whether any negligence of Landlord or Landlord’s employees or agents
contributed thereto. Tenant expressly releases Landlord of and from all liability for any such
damage and Tenant agrees that its property insurance policies required hereunder shall include a
waiver of subrogation recognizing this release from liability.

     (b) Boiler and Machinery Insurance. Tenant agrees to maintain a comprehensive boiler and
machinery policy on a full repair and replacement cost basis, and further in accordance with the
requirements of Section 27(a)(iii)-(vi) above, with an admitted, reputable insurance carrier
covering property damage as a result of a loss from boiler(s), pressure vessel(s), HVAC equipment,
or other electrical or mechanical apparatus within or servicing the demised premises, furniture,
fixtures, equipment and inventory together with property of others in the care, custody and control
of Tenant. The deductible for property damage under such policy shall not exceed Five Thousand
Dollars ($5,000.00) per occurrence.

     (c) Additional Tenant Insurance. Tenant’s insurance required under Section (27(a) and (b)
above shall also include business income coverage against any interruption (including utility
interruption) in Tenant’s business (whether direct, indirect, contingent or interdependent),
including, but not limited to, coverage for Tenant’s leasehold interests and obligations to
continue paying all rental amounts hereunder, lost revenues and income, and extra expense. Such
coverage should be for a period of at least twelve (12) months, with an extended period of
indemnity of at least thirty (30) days. The deductible for such coverage may not exceed
twenty-four (24) hours.

     (d) Tenant’s Commercial General Liability Insurance. Tenant agrees to procure and maintain
during the demised term commercial general liability insurance by a responsible insurance company
or companies, with policy limits of not less than the greater of any requirement imposed on
Landlord under the Master Lease or $1,000,000.00 per occurrence and $2,000,000.00 annual aggregate,
and $500,000.00 limits for fire and legal liability, insuring against liability for losses, claims,
demands or actions for bodily injury (including death) and property damage arising from Tenant’s
conduct and operation of its business in and Tenant’s use, maintenance and occupancy of, the
demised premises and any areas adjacent thereto, or the acts or omissions of Tenant’s employees and
agents. Such commercial general liability policy may be written on a blanket basis to include the
demised premises in conjunction with other premises owned or operated by Tenant but shall be
written such that the required policy limits herein specifically apply on a per location basis to
the demised premises. Tenant’s commercial general liability insurance policy shall further
provide: (i) coverage for defense costs (in excess of policy limits); (ii) contractual liability
coverage; (iii) cross-liability coverage; and, (iv) that Landlord, its shareholders, officers,
directors, employees, and agents, Master Landlord, and Master Landlord’s mortgagee, if any, are
named as additional insureds such that (Y) Tenant’s policy shall be the primary source of insurance
for such additional insured and (Z) any liability policy carried by such additional insureds shall
be in excess of, and will not contribute with or to, Tenant’s commercial general liability
insurance required to be maintained hereunder. At the time this
Lease is executed and thirty (30) days prior to the expiration of such insurance policy,
Tenant shall furnish to Landlord, Master Landlord, and Master Landlord’s mortgagee, if any,
certificates of insurance evidencing the continuous existence during the term of this Lease of

 

 

Tenant’s commercial general liability insurance coverage, which certificates shall include
attachment of additional insured endorsement, name any and all non-standard exclusions or
limitations, and provide not less than thirty (30) days notice of cancellation or termination to
Landlord (and any other additional insured, if applicable). All insurance companies must be
licensed to do business in the state where the premises are located. Tenant shall further procure
and maintain other liability insurance (including, but not limited to, liquor and pollution
insurance) as Landlord may from time to time reasonably require.

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

     If Tenant hires contractors to do any improvements on the demised premises, each contractor
must provide proof of worker’s compensation coverage on its employees and agents to Landlord.

     (f) Contingent Liability and Builder’s Risk Insurance. With respect to any alterations or
improvements by Tenant, Tenant shall maintain contingent liability and builder’s risk coverage
naming Landlord as an additional insured, in compliance with the additional insured requirements
set forth in Section 27(d).

     (g) Landlord’s Property Insurance. Commencing as of the Commencement Date, and thereafter
throughout the term of this Lease, Landlord shall, at Landlord’s sole cost and expense, provide and
maintain or cause to be provided and maintained a property insurance policy insuring the Building
(including any permanent improvements to the demised premises paid for by the Tenant Reimbursement
but excluding those items insured by Tenant as required under this Section 27) for all the hazards
and perils normally covered by the Causes of Loss-Special Form. Said property insurance policy
shall include endorsements for coverage against: (i) earthquake and flood (including, but not
limited to, mud slide, flood hazard or fault area(s), as designated on any map prepared or issued
for such purpose by any governmental authority); and (ii) increased costs of construction and
demolition due to law and ordinance. The foregoing property coverage shall be provided in amounts
sufficient to provide one hundred percent (100%) of the full replacement cost of all buildings (and
building additions) and other improvements in the Center and in the demised premises and Tenant’s
store building (including any permanent improvements to the demised premises paid for by Tenant
Reimbursement but excluding those items insured by Tenant as required under this Section 27). If
for any reason the Causes of Loss-Special Form is not customarily used in the insurance industry,
then the property insurance policy then in effect shall at least provide coverage for the following
perils: fire, lightning, windstorm and hail, explosion, smoke, aircraft and vehicles, riot and
civil commotion, vandalism and malicious mischief, sprinkler leakage, sinkhole and collapse,
volcanic action, earthquake or earth movement, and flood, and increased costs of construction and
demolition due to law, ordinance and inflation. Neither Tenant nor any of its affiliates or
subtenants shall be liable to Landlord for any loss or damage (including loss of income),
regardless of cause, resulting from fire, flood, act of God or other casualty.

     (h) Landlord’s Commercial General Liability Insurance. Commencing as of the Commencement
Date, and thereafter throughout the term of this Lease, Landlord shall, at Landlord’s sole cost and
expense, provide and maintain or cause to be provided and maintained a commercial general liability
policy, naming Landlord as an insured (and naming Tenant as an additional insured, said additional
insured’s coverage under Landlord’s commercial general liability policy to be primary), protecting
Landlord, the business operated by Landlord, and any additional insureds (including Tenant) against
claims for bodily injury (including death) and property damage occurring upon, in or about the
Center (other than the demised premises and those areas insured by other tenants at the Center),
including Common Areas. Such insurance shall afford protection to the limits of not less than the
greater of any requirement imposed upon Landlord by the Master Lease or One Million Dollars
($1,000,000.00) per occurrence, Two
Million Dollars ($2,000,000.00) annual aggregate, and Five Hundred Thousand Dollars
($500,000.00) with respect to property damage for fire legal liability. All liability policies
shall be written on an occurrence form unless such form is no longer customarily used in the
insurance industry. Landlord may use commercially reasonable deductibles Landlord customarily
carries

 

 

in the conduct of its business; however, the amount of such deductibles which may be
charged to Tenant pursuant to Section 12.09 below may not exceed $0.20 per square foot of gross
leasable area of the demised premises in any lease year.

     (i) Landlord’s Umbrella. Commencing as of the Commencement Date, and thereafter throughout
the term of this Lease, Landlord shall, at Landlord’s sole cost and expense, provide and maintain
or cause to be provided and maintained an umbrella liability insurance policy with a Ten Million
Dollar ($10,000,000.00) minimum annual aggregate, which umbrella policy (or policies) shall list
Landlord’s commercial general liability policy required under this Section 27 and any other
liability policy or policies carried by, or for the benefit of, Landlord as underlying policies.
Said umbrella liability policy shall also name Tenant as an additional insured (said additional
insured’s coverage under Landlord’s umbrella liability policy to be primary). All liability
policies shall be written on an occurrence form unless such form is no longer customarily used in
the insurance industry.

     (j) Tenant Indemnity. Tenant shall indemnify Landlord, Landlord’s agents, employees,
officers or directors, against all damages, claims and liabilities arising from any alleged
products liability or from any accident or injury whatsoever caused to any person, firm or
corporation during the demised term in the demised premises, unless such claim arises from a breach
or default in the performance by Landlord of any covenant or agreement on its part to be performed
under this Lease or, to the extent not required to be insured hereunder, the negligence of
Landlord. The indemnification herein provided shall include all reasonable costs, counsel fees,
expenses and liabilities incurred in connection with any such claim or any action or proceeding
brought thereon.

     (k) Landlord Indemnity. Landlord shall indemnify Tenant, Tenant’s officers, directors,
employees and agents against all damages, claims and liabilities arising from any accident or
injury whatsoever caused to any person, firm or corporation during the demised term in the common
areas of the Shopping Center, unless such claim arises from a breach or default in the performance
by Tenant of any covenant or agreement on Tenant’s part to perform under this Lease or, to the
extent not required to be insured hereunder, the negligence of Tenant. The indemnification herein
provided shall include all reasonable costs, counsel fees, expenses and liabilities incurred in
connection with any such claim or any action or proceeding brought thereon.

SECTION 28. REAL ESTATE TAXES

     (a) Tenant shall pay Tenant’s Proportionate Tax Share of any “real estate taxes” (defined in
Section 16(b) above) for which Landlord has a payment or reimbursement obligation pursuant to the
Master Lease. Tenant’s Proportionate Tax Share shall be equal to the real estate taxes payable by
Landlord to Master Landlord, multiplied by a fraction, the numerator of which shall be the leasable
square feet in the demised premises and the denominator of which shall be the leasable square feet
in the Building. Tenant shall initially pay to Landlord as additional rental, simultaneously with
the payment of minimum rental called for under Section 5(a), the estimated monthly amount of
Tenant’s Proportionate Tax Share of real estate taxes as set forth in Section 5(c) of Nine and
35/100 Dollars ($9.35) per square foot, payable in equal monthly installments of Thirteen Thousand
Two Hundred Eighty-Four and 79/100 Dollars ($13,284.79), as the estimated amount of Tenant’s
Proportionate Tax Share. Within one hundred twenty (120) days after the end of each accounting
year (which Landlord may change from time to time), Landlord shall provide Tenant with an annual
reconciliation of real estate taxes and a statement of the actual amount of Tenant’s Proportionate
Share thereof. Any excess payments from Tenant shall be applied to the next installments of real
estate taxes hereunder, or refunded by Landlord. Any underpayments by Tenant shall be paid to
Landlord within thirty (30) days after receipt of such reconciliation statement. Tenant’s estimated
monthly installment of real estate taxes payable hereunder may be adjusted by written notice from
Landlord.

     (b) For the purpose of this Lease, the term “real estate taxes” shall include “Impositions” as
defined in the Master Lease.

     (c) The real estate taxes for any lease year shall be the real estate taxes for which Landlord
has a payment or reimbursement obligation pursuant to the Master Lease during such lease year.

 

 

     (d) Upon request, Landlord shall submit to Tenant true copies of the real estate tax bills
submitted to Landlord by Master Landlord for each tax year or portion of a tax year included within
the term of this Lease and shall bill Tenant for the amount to be paid by Tenant hereunder. Said
bill shall be accompanied by a computation of the amount payable by Tenant and such amount shall be
paid by Tenant within thirty (30) days after receipt of said bill.

SECTION 29. TENANT’S INSURANCE CONTRIBUTION

     Tenant shall pay as additional rent, Tenant’s Proportionate Insurance Share of (i) the
premiums for the insurance maintained by Landlord on the Building pursuant to Section 27(g) hereof
and (ii) the insurance premiums for the liability insurance maintained by Landlord or the Center
pursuant to Section 27(h) for each lease year during the term of this Lease, less any amounts
reimbursed to Landlord by Master Landlord pursuant to the Master Lease (collectively, the
“Insurance Charges”). Tenant’s Proportionate Insurance Share shall be equal to the Insurance
Charges multiplied by a fraction, the numerator of which shall be the leasable square feet in the
demised premises and the denominator of which shall be the leasable square feet in the
Building. The premiums for the first and last lease years shall be prorated. Tenant
shall pay Tenant’s Proportionate Share of such premiums annually upon demand for such payment by
Landlord. Tenant’s Proportionate Share thereof shall be paid by Tenant within thirty (30) days
after Landlord’s demand therefore. Tenant shall initially pay to Landlord as additional rental,
simultaneously with the payment of minimum rental called for under Section 5(a), the estimated
monthly amount of Tenant’s Proportionate Share of such insurance premiums as set forth in Section
5(c), of Fifteen Cents ($0.15) per square foot, payable in equal monthly installments of Two
Hundred Thirteen and 13/100 Dollars ($213.13) , as the estimated amount of Tenant’s
Proportionate Share of such insurance premiums. Within one hundred twenty (120) days after the end
of each accounting year (which Landlord may change from time to time), Landlord shall provide
Tenant with a reconciliation of the premiums for the insurance maintained by Landlord hereunder and
a statement of the actual amount of Tenant’s Proportionate Share thereof. Any excess payments from
Tenant shall be applied to the next installments of insurance premiums payable by Tenant hereunder,
or refunded by Landlord. Any underpayments by Tenant shall be paid to Landlord within thirty (30)
days after receipt of such reconciliation statement. Tenant’s monthly installment of insurance
premiums payable hereunder may be adjusted by written notice from Landlord.

SECTION 30. FIXTURES

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

SECTION 31. SURRENDER

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

SECTION 32. HOLDING OVER

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

 

 

SECTION 33. NOTICE

     Whenever under this Lease provisions are made for notice of any kind to Landlord, it shall be
deemed sufficient notice and sufficient service thereof if such notice to Landlord is in writing,
addressed to Landlord at c/o Schottenstein Management Company, 1800 Moler Road, Columbus, Ohio
43207, or at such address as Landlord may notify Tenant in writing, and deposited in the United
States mail by certified mail, return receipt requested, with postage prepaid or Federal Express,
Express Mail or such other expedited mail service as normally results in overnight delivery, with a
copy of same sent in like manner to President, Real Estate, 1800 Moler Road, Columbus, Ohio 43207.
Notice to Tenant shall be sent in like manner to 4150 East Fifth Avenue, Columbus, Ohio 43219, with
copies of same sent to (i) General Counsel, 3241 Westerville Road, Columbus, Ohio 43224-3751 and
(ii) Randall S. Arndt, Esq., Schottenstein Zox & Dunn, 250 West Street, Columbus, Ohio 43215. All
notices shall be effective upon receipt or refusal of receipt. Either party may change the place
for service of notice by notice to the other party.

SECTION 34. DEFAULT

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

     1. Tenant fails to pay any monthly installment of rent within ten (10) days after the same
shall be due and payable, except for the first two (2) times in any consecutive twelve (12) month
period, in which event Tenant shall have five (5) days after receipt of written notice of such
failure to pay before such failure shall constitute a default;

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

     3. If Tenant refuses to take possession of the demised premises as required pursuant to this
Lease or abandons the demised premises for a period of thirty (30) days or substantially ceases to
operate its business or to carry on its normal activities in the demised premises as required
pursuant to this Lease.

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

     5. A petition in bankruptcy, insolvency, or for reorganization or arrangement is filed by or
against Tenant or any guarantor of Tenant’s obligations under this Lease pursuant to any Federal or
state statute, and, with respect to any such petition filed against it, Tenant or such guarantor
fails to secure a stay or discharge thereof within sixty (60) days after the filing of the same.

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

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

 

 

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

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

     4. If the Tenant shall not remove all of Tenant’s property from said demised premises as
provided in this Lease, Landlord, at its option, may remove any or all of said property in any
manner that Landlord shall choose and store same without liability for loss thereof, and Tenant
will pay the Landlord, on demand, any and all reasonable expenses incurred in such removal and
storage of said property for any length of time during which the same shall be in possession of
Landlord or in storage, or Landlord may, upon thirty (30) days prior notice to Tenant, sell any or
all of said property in such manner and for such price as the Landlord may reasonably deem best and
apply the proceeds of such sale upon any amounts due under this Lease from the Tenant to the
Landlord, including the reasonable expenses of removal and sale.

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

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

     7. Tenant hereby expressly waives any and all rights of redemption granted by or under any
present or future laws, in the event of eviction or dispossession of Tenant by Landlord under any
provision of this Lease. No receipt of monies by Landlord from or for the account of

 

 

Tenant or
from anyone in possession or occupancy of the demised premises after the termination of this Lease
or after the giving of any notice shall reinstate, continue or extend the term of this Lease or
affect any notice given to the Tenant prior to the receipt of such money, it being agreed that
after the service of notice or the commencement of a suit, or after final judgment for possession
of said demised premises, the Landlord may receive and collect any rent or other amounts due
Landlord and such payment shall not waive or affect said notice, said suit or said judgment.

     (c) Additional Remedies and Waivers: The rights and remedies of Landlord set forth herein
shall be in addition to any other right and remedy now or hereinafter provided by law and/or equity
and all such rights and remedies shall be cumulative and shall not be deemed inconsistent with each
other, and any two or more or all of said rights and remedies may be exercised at the same time or
at different times and from time to time without waiver thereof of any right or remedy provided or
reserved to Landlord. No action or inaction by Landlord shall constitute a waiver of a default and
no waiver of default shall be effective unless it is in writing, signed by the Landlord.

     (d) Default by Landlord. Any failure by Landlord to observe or perform any provision,
covenant or condition of this Lease to be observed or performed by Landlord, if such failure
continues for thirty (30) days after written notice thereof from Tenant to Landlord, shall
constitute a default by Landlord under this Lease, provided, however, that if the nature of such
default is such that the same cannot reasonably be cured within a thirty (30) day period, Landlord
shall not be deemed to be in default if it shall commence such cure within such thirty (30) day
period and thereafter rectify and cure such default with due diligence.

     (e) Interest on Past Due Obligations: All monetary amounts required to be paid by Tenant or
Landlord hereunder which are not paid on or before the due date thereof shall, from and after such
due date, bear interest at the Interest Rate, and shall be due and payable by such party without
notice or demand.

     (f) Tenant’s Remedies. In the event of default by the Landlord with respect to the demised
premises, Tenant shall have the option to cure said default. Landlord shall reimburse Tenant for
the reasonable costs incurred by Tenant in curing such default within thirty (30) days after
invoice thereof by Tenant, together with reasonable evidence supporting such invoiced amount.
Tenant shall also have any and all rights available under the laws of the state in which the
demised premises are situated; provided, however, that any right of offset available to Tenant
shall be subject to the provisions of Section 36 below.

SECTION 35. WAIVER OF SUBROGATION

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

SECTION 36. LIABILITY OF LANDLORD; EXCULPATION

     (a) Except with respect to any damages resulting from the gross negligence of Landlord, its
agents, or employees, or resulting from the breach of Landlord’s obligations hereunder, Landlord
shall not be liable to Tenant, its agents, employees, or customers for any damages, losses,
compensation, accidents, or claims whatsoever. The foregoing notwithstanding, it is expressly
understood and agreed that nothing in this Lease contained shall be construed as creating any
liability whatsoever against Landlord personally, and in particular without limiting the generality
of the foregoing, there shall be no personal liability to pay any indebtedness accruing hereunder
or to perform any covenant, either express or implied, herein contained, or to keep, preserve or
sequester any property of Landlord and that all personal liability of Landlord to the extent
permitted by law, of every sort, if any, is hereby expressly

 

 

waived by Tenant, and by every person
now or hereafter claiming any right or security hereunder.

     (b) If the Tenant obtains a money judgment against Landlord, any of its officers, directors,
shareholders, partners, members or their successors or assigns under any provisions of or with
respect to this Lease or on account of any matter, condition or circumstance arising out of the
relationship of the parties under this Lease, Tenant’s occupancy of the Building or Landlord’s
ownership of the leasehold estate created by the Master Lease, Tenant shall be entitled to have
execution upon any such final, unappealable judgment only upon Landlord’s leasehold estate in the
Shopping Center and not out of any other assets of Landlord, or any of its officers, directors,
shareholders, members or partners, or their successor or assigns; and Landlord shall be entitled to
have any such judgment so qualified as to constitute a lien only on said fee simple or leasehold
estate.

     Notwithstanding the above, Tenant shall have the right to offset any final, unappealable
judgment against twenty five percent (25%) of all minimum rent and all percentage rental (but no
other additional rent components) if not paid to Tenant by Landlord within thirty (30) days
thereafter.

     (c) It is expressly agreed that nothing in this Lease shall be construed as creating any
personal liability of any kind against the assets of any of the officers, directors, members,
partners or shareholders of Tenant, or their successors and assigns.

SECTION 37. RIGHTS CUMULATIVE

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

SECTION 38. MITIGATION OF DAMAGES

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

SECTION 39. SIGNS

     No signs shall be placed on the demised premises by Tenant except as shall comply with all
applicable governmental codes, restrictions of record in accordance with Section 7 above, sign
criteria established by Landlord or Master Landlord for the Shopping Center, and with the prior
written consent of Landlord (not to be unreasonably withheld) after sign drawings have been
submitted to Landlord by Tenant. Subject to the foregoing, Tenant shall have the right to install
its prototypical signage and awnings on the front of the demised premises as described on
Exhibit “E” attached hereto and made a part hereof. Tenant shall be entitled to pylon,
monument or other freestanding signage as shown on Exhibit “E” (and any future replacement
signage therefore).

SECTION 40. ENTIRE AGREEMENT

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

 

 

SECTION 41. LANDLORD’S LIEN – DELETED BY INTENTION 

SECTION 42. BINDING UPON SUCCESSORS 

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

SECTION 43. HAZARDOUS SUBSTANCES

     (a) During the term of this Lease, Tenant shall not suffer, allow, permit or cause the
generation, accumulation, storage, possession, release or threat of release of any hazardous
substance or toxic material, as those terms are used in the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, and any regulations promulgated thereunder, or
any other present or future federal, state or local laws, ordinances, rules, and regulations.
Tenant shall indemnify and hold Landlord harmless from any and all liabilities, penalties, demands,
actions, costs and expenses (including without limitation reasonable attorney fees), remediation
and response costs incurred or suffered by Landlord directly or indirectly arising due to the
breach of Tenant’s obligations set forth in this Section. Such indemnification shall survive
expiration or earlier termination of this Lease. At the expiration or sooner termination hereof,
Tenant shall return the demised premises to Landlord in substantially the same condition as existed
on the date of commencement hereof free of any hazardous substances in, on or from the demised
premises.

     (b) Landlord hereby represents and warrants that, except as set forth in that certain
Pre-Demolition Asbestos Survey Report of “Former” Toys R’ Us, 3501 Hempstead Turnpike, Levittown,
New York, CNS Job #: A26887, dated April 27, 2006, prepared by CNS Management Corp.: (i) it has not
used, generated, discharged, released or stored any hazardous substances on, in or under the
Shopping Center and has received no notice and has no knowledge of the presence in, on or under the
Shopping Center of any such hazardous substances; (ii) to Landlord’s knowledge there have never
been any underground storage tanks at the Shopping Center, whether owned by the Landlord or its
predecessors in interest; (iii) to Landlord’s knowledge there have never been accumulated tires,
spent batteries, mining spoil, debris or other solid waste (except for rubbish and containers for
normal scheduled disposal in compliance with all applicable laws) in, on or under the Shopping
Center; (iv) to Landlord’s knowledge it has not spilled, discharged or leaked petroleum products
other than de minimis quantities in connection with the operation of motor vehicles on the Shopping
Center; (v) to Landlord’s knowledge there has been no graining, filling or modification of wetlands
(as defined by federal, state or local law, regulation or ordinance) at the Shopping Center; and
(vi) to Landlord’s knowledge there is no asbestos or asbestos-containing material in the demised
premises. The representations and warranties set forth in this subparagraph shall apply to any
contiguous or adjacent property owed by the Landlord. Landlord hereby indemnifies Tenant for any
and all loss, cost, damage or expense to Tenant resulting from any misrepresentation or breach of
the foregoing representations and warranties. .

     (c) It is acknowledged by the parties that Tenant is causing to be performed removal/abatement
of asbestos as specifically set forth in Section 3(e) hereof, but at Landlord’s expense, as set
forth in Section 3(e); Landlord shall be responsible to cause the demised premises to be free of
any other hazardous substances not specifically included in the description of such abatement work
described in Section 3(e). Except as set forth in the preceding sentence, if any hazardous
substances are discovered at the Shopping Center (unless introduced by the Tenant, its agents or
employees) or if any asbestos or asbestos containing material is discovered in the demised premises
(unless introduced by the Tenant, its agents or employees), and removal,
encapsulation or other remediation is required by applicable laws, the Landlord immediately
and with all due diligence and at no expense to the Tenant shall take all measures necessary to
comply with all applicable laws and to remove such hazardous substances or asbestos from the
Shopping Center and/or encapsulate or remediate such hazardous substances or asbestos, which
removal and/or encapsulation or remediation shall be in compliance with all environmental laws and
regulations, and the Landlord shall repair and restore the Shopping Center at its expense. From
the date such encapsulation, remediation and restoration is complete, the rent due hereunder shall
be reduced by the same percentage as the percentage of the demised premises which, in the Tenant’s
reasonable judgment, cannot be safely, economically or practically used

 

 

for the operation of the
Tenant’s business. Anything herein to the contrary notwithstanding, if in the Tenant’s reasonable
judgment, such removal, encapsulation, remediation and restoration cannot be completed within one
hundred eighty (180) days or the same is not actually completed by Landlord within such one hundred
eighty (180) day period following the date such hazardous substances or asbestos are discovered and
such condition materially adversely affects Tenant’s ability to conduct normal business operations
in the premises, then the Tenant may terminate this Lease by written notice to the Landlord within
thirty (30) days after such 180 day period, which notice shall be effective on Landlord’s receipt
thereof. Landlord shall comply with OSHA 29 CFR 1910.1001 (j) to notify tenants, including Tenant,
of asbestos related activities in the demised premises and the Shopping Center including, but not
limited to, selection of the certified/licensed asbestos abatement contractor, scope of the
abatement work, and final clearance testing procedures and results.

SECTION 44. TRANSFER OF INTEREST

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

SECTION 45. ACCESS TO PREMISES

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

SECTION 46. HEADINGS

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

SECTION 47. NON-WAIVER

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

SECTION 48. SHORT FORM LEASE

     This Lease shall not be recorded, but a short form lease, which describes the property herein
demised, gives the term of this Lease and refers to this Lease, shall be executed by the parties
hereto, upon demand of either party and such short form lease may be recorded by Landlord or Tenant
at any time either deems it appropriate to do so. The cost and recording of such short form lease
shall belong to the requesting party.

SECTION 49. ESTOPPEL CERTIFICATE

     Each party agrees that at any time and from time to time on ten (10) days prior written
request by the other, it will execute, acknowledge and deliver to the requesting party a statement
in writing stating that this Lease is unmodified and in full force and effect (or, if there have
been

 

 

modifications, stating the modifications, and that the Lease as so modified is in full force
and effect, and the dates to which the rent and other charges hereunder have been paid, and such
other information as may reasonably re requested, it being intended that any such statements
delivered pursuant to this Section may be relied upon by any current or prospective purchaser of or
any prospective holder of a mortgage or a deed of trust upon or any interest in the fee or any
leasehold or by the mortgagee, beneficiary or grantee of any security or interest, or any assignee
of any thereof or under any mortgage, deed of trust or conveyance for security purposes now or
hereafter done or made with respect to the fee of or any leasehold interest in the demised
premises.

SECTION 50. MASTER LEASE CONTINGENCIES 

     This Lease and the liability of Tenant hereunder is and shall be wholly contingent upon Tenant
obtaining, on or before___, 2006, the following:

	 	(i)	 	a copy of a Subordination, Non-disturbance and Attornment Agreement in form
and substance reasonably acceptable to Tenant duly executed by the holder of any
mortgage or deed of trust on the Shopping Center, pursuant to which the lender agrees
to recognize the leasehold rights created by the Master Lease in the event that Master
Landlord shall default under such mortgage or deed of trust; and
	 
	 	(ii)	 	such other consents, approvals or information that Tenant may reasonably
require pursuant to its review of the Master Lease.

SECTION 51. PROVISIONS WITH RESPECT TO MASTER LEASE

     (a) Consents and Approvals. Wherever pursuant to the Master Lease and this Lease the
consent and/or approval of the Master Landlord and Landlord is
required, Landlord’s refusal to
consent to or approve any matter or thing shall be deemed reasonable if the consent or approval of
Master Landlord is required, and despite Landlord’s commercially reasonable efforts, such consent
or approval has not been obtained from Master Landlord. In the event that Tenant seeks the
consent or approval of Master Landlord, Tenant shall submit such request to Landlord and Landlord
shall promptly thereafter submit such request to Master Landlord and use commercially reasonable
efforts to obtain on behalf of Tenant such consent or approval of Master Landlord, but at no cost
or expense to Landlord.

     (b) Master Landlord Default and Remedy. If Master Landlord fails to perform any
obligation which it has under the Master Lease and such failure materially adversely effects the
rights of Tenant hereunder or its ability to use, operate and maintain its business in the
premises, then Tenant shall prepare and deliver to Landlord a written notice specifying such
failure to perform in reasonable detail. Landlord shall promptly thereafter transmit such notice
to Master Landlord and shall use commercially reasonable efforts to cause Master Landlord to
perform such obligation. If, despite Landlord’s reasonable efforts, Master Landlord fails to timely
perform such obligation as required by the Master Lease, Landlord hereby assigns to Tenant the
right, at Landlord’s expense, to enforce such obligations against Master Landlord on behalf of
Landlord. Landlord agrees to cooperate with Tenant in such enforcement efforts, at no expense to
Tenant, and shall permit Tenant to undertake such efforts in Landlord’s name, if necessary in order
to effectively prosecute such enforcement actions. The foregoing is in addition to any and all
other
remedies available to Tenant under this Sublease or at law or in equity, including but not
limited to, exercise of “self-help” remedies.

SECTION 52. BROKER

     Landlord and Tenant each represent to the other that they have not entered into any agreement
or incurred any obligation in connection with this transaction which might result in the obligation
to pay a brokerage commission to any broker other than E.M.B. Associates, Inc. Landlord agrees to
be solely responsible for any and all commission due to such broker pursuant to a separate written
agreement between Landlord and such broker. Each party shall indemnify and hold the other party
harmless from and against any claim or demand by any broker or other person for bringing about this
Lease who claims to have dealt with such indemnifying party, including all expenses incurred in
defending any such claim or demand (including reasonable attorney’s fees).

 

 

SECTION 53. UNAVOIDABLE DELAYS

     In the event either party hereto (the “Delayed Party”) shall be delayed or hindered in or
prevented from the performance of any act required under this Lease by reason of strikes, lockouts,
labor troubles, inability to procure materials, failure of power, the unforeseen application of
restrictive governmental laws or regulations, riots, insurrection, war, acts of terrorism or other
reason of a like nature not the fault of the Delayed Party in performing work or doing acts
required under the terms of this Lease, then performance of such act shall be excused for the
period of the delay, and the period for the performance of any such act shall be extended for a
period equivalent to the period of such delay, provided that the Delayed Party notified the other
party within fifteen (15) days of the Delayed Party being informed of the occurrence of the event
causing such delay. The provisions of this Section 53 shall not operate to excuse either party
from the payment of any rental or other monetary sums due under the terms of this Lease.

SECTION 54. TIMELY EXECUTION OF LEASE

     Landlord and Tenant agree that this Lease, and the parties’ obligations hereunder, shall
automatically be null and void and this Lease shall terminate automatically without further action
of the parties if both parties do not execute this Lease and both parties have not received an
original thereof within sixty (60) days after the date of execution hereof by the first party to
execute this Lease.

SECTION 55. ACCORD AND SATISFACTION

     No payment by Tenant or receipt by Landlord of a lesser amount than the entire rent and all
other additional rents and charges hereunder shall be deemed to be other than payment on account of
the earliest stipulated rent and other additional rents and charges hereunder, nor shall any
endorsement or statement on any check or any letter accompanying any check or payment for rent or
other additional rent and charges be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the balance of such rent and
other additional rents and charges or pursue any other right or remedy available to the Landlord.

SECTION 56. WAIVER OF JURY TRIAL

     The Landlord and Tenant do hereby knowingly, voluntarily and intentionally waive the right to
a trial by jury of any and all issues either now or hereinafter provided by law in any action or
proceeding between the parties hereto, or their successors, arising directly or indirectly out of
or in any way connected with this Lease or any of its provisions, the Tenant’s use or occupancy of
said premises and/or any claim for personal injury or property damage including, without
limitation, any action to rescind or cancel this Lease, and any claim or defense asserting that
this Lease was fraudulently induced or is otherwise void or voidable. It is intended that said
waiver shall apply to any and all defenses, rights and/or counterclaims in any action or proceeding
at law or in equity. This waiver is a material inducement for Landlord and Tenant to enter into
this Lease.

SECTION 57. LEASEHOLD FINANCING

     (a) Tenant’s Financing Rights. Landlord acknowledges and agrees that Tenant may from time to
time during the term, without the consent of Landlord, mortgage or otherwise finance and encumber,
whether by leasehold deed of trust or mortgage, collateral assignment of this Lease,
lease/sublease-back, and/or assignment/leaseback, any and/or all of its leasehold estate hereunder,
and property and rights in and to the Leased Premises granted to it under this Lease, as security
for the payment of an indebtedness (any and all of which are herein referred to as a “Leasehold
Mortgage” and the holder thereof is herein referred to as “Leasehold Mortgagee”). Any such
Leasehold Mortgage shall be a lien only upon Tenant’s leasehold estate hereunder and Tenant’s
interests in this Lease. Leasehold Mortgagee or its assigns may enforce such Leasehold Mortgage and
acquire title to the leasehold estate and Tenant’s interest in the Leased Premises in any lawful
way, and in connection therewith Leasehold Mortgagee may take possession of and rent the Leased
Premises.

 

 

     (b) Cooperation with Leasehold Mortgagee. Tenant shall notify Landlord (and any Fee Mortgagee,
as hereinafter defined in Section 57(c) below), in the manner hereinafter provided for the giving
of notice, of the execution of such Leasehold Mortgage and the name and place for service of notice
upon Leasehold Mortgagee. Upon such notification of Landlord that Tenant has entered into a
Leasehold Mortgage, Landlord hereby agrees for the benefit of such Leasehold Mortgagee, and upon
written request by Tenant, to execute and deliver to Tenant and Leasehold Mortgagee: (i) a
commercially reasonable “Landlord’s Agreement” and (ii) a commercially reasonable “Landlord’s
Waiver”, as described in Section 57(d) below. Landlord further agrees that it will comply with all
of the covenants and obligations contained in said documents.

     (c) Tenant shall notify Landlord (and any Landlord Mortgagee, as hereinafter defined in
Section 57(e) below), in the manner hereinafter provided for the giving of notice, of the execution
of such Leasehold Mortgage and the name and place for service of notice upon Leasehold Mortgagee.
Upon such notification of Landlord that Tenant has entered into a Leasehold Mortgage, Landlord
hereby agrees for the benefit of such Leasehold Mortgagee, and upon written request by Tenant, to
execute and deliver to Tenant and Leasehold Mortgagee a “Landlord’s Agreement” whereby Landlord
agrees to recognize the interest of Leasehold Mortgagee and any Successor-Tenant hereunder, on
commercially reasonable terms and conditions acceptable to Leasehold Mortgagee.

     (d) Landlord does hereby waive any statutory or other lien of the Landlord in Tenant’s present
and after-acquired assets, including among other things, Tenant’s inventory and equipment. To
evidence such waiver for the benefit of any lender of Tenant, Landlord shall, upon request, execute
and deliver to Tenant a commercially reasonable “Landlord’s Waiver”.

     (e) Landlord Mortgagee. Landlord represents to Tenant that as of the date of this Lease there
is no mortgage encumbering Landlord’s leasehold interest in the Building or common areas, and that
there will not be such a mortgage for at least sixty (60) days after the date this Lease is fully
executed by Landlord and Tenant.

SECTION 58. TENANT ALLOWANCE

     Provided Tenant is not in default under any of the terms and conditions contained herein,
Landlord shall reimburse Tenant for a portion of the cost of Tenant’s Work within the demised
premises, in the amount and manner hereinafter provided. The amount of such reimbursement shall
hereinafter be referred to as “Tenant’s Allowance.” It is understood and agreed that Tenant’s
Allowance shall be a reimbursement for a portion of the actual cost incurred by Tenant to complete
Tenant’s Work within the demised premises as detailed on Exhibit C. Tenant’s Allowance shall be
equal to One Million Ninety-two Thousand Dollars ($1,092,000.00).

     Landlord shall pay Tenant’s Allowance to Tenant when Tenant has opened for business in the
Premises, paid the minimum rent and additional rent under Section 5(c) of this Lease for the first
month of the term of this Lease and furnished to Landlord the following:

	 	(1)	 	An original notarized affidavit of Tenant’s general contractor stating that (i)
Tenant’s Work has been fully completed in accordance with the plans and specifications
described on Exhibit C, subject, however, to Landlord’s verification thereof, and (ii)
all subcontractors, laborers and material suppliers have been paid in full;
	 
	 	(2)	 	An original notarized waiver of liens with respect to the Premises, executed by
Tenant’s general contractor; and
	 
	 	(3)	 	A certificate of use and occupancy for the Premises issued by the appropriate
governmental authority.

     Notwithstanding anything to the contrary contained herein, including Section 36 hereof, in the
event Landlord does not timely pay the Tenant Reimbursement to Tenant, (a) Landlord shall pay to
Tenant interest on such unpaid amounts at eighteen percent (18%) per annum and (b) Tenant shall
have the right to deduct any and all such amounts owed Tenant against all minimum rent and all
percentage rental (but no other additional rent components) thereafter due Landlord

 

 

until
such time as Tenant has been credited the full amount of the Tenant Reimbursement plus applicable
interest.

     Notwithstanding anything to the contrary contained herein, Landlord reserves the right to
offset against Tenant’s Allowance any delinquent amounts due to Landlord by Tenant accrued
hereunder. In the event this Lease shall be terminated for any reason prior to the natural
expiration of the term of this Lease, Tenant shall pay to Landlord the unamortized portion of
Tenant’s Allowance, said amortization to be computed based upon a fifteen (15) year term commencing
on the commencement date, and an annual interest of eighteen percent (18%). All tenant
improvements and fixtures which are not personal property paid for with the Tenant’s Allowance
(“Tenant Improvement Fixtures”) shall, at all times during the term of the Lease and upon the
expiration or earlier termination of the Lease, be the property of Landlord. Tenant shall not
acquire any interest, equitable or otherwise, in any Tenant Improvement Fixtures.EX-10.2

 

Exhibit 10.2

L E A S E

	 	 	 	 	 
	 

	 	LANDLORD:
	 	JLP-LYNNHAVEN VA LLC
	 

	 	 	 	1798 FREBIS AVENUE
	 

	 	 	 	COLUMBUS OH 43206-0410
	 
	 

	 	TENANT:
	 	DSW INC.
	 

	 	 	 	4150 EAST FIFTH AVENUE
	 

	 	 	 	COLUMBUS, OHIO 43219
	 
	 

	 	PREMISES:
	 	Approximately 20,660 square feet at
	 

	 	 	 	Lynnhaven East Shopping Center
	 

	 	 	 	Virginia Beach, Virginia

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. PREMISES
	 	 	3	 
	 
	SECTION 2. LANDLORD’S AND TENANT’S WORK
	 	 	3	 
	 
	SECTION 3. TERM
	 	 	5	 
	 
	SECTION 4. MINIMUM RENT
	 	 	6	 
	 
	SECTION 5. PERCENTAGE RENT
	 	 	8	 
	 
	SECTION 6. TITLE ENCUMBRANCES; LANDLORD REPRESENATATIONS, WARRANTIES AND COVENANTS
	 	 	9	 
	 
	SECTION 7. RIGHT TO REMODEL
	 	 	10	 
	 
	SECTION 8. UTILITIES
	 	 	11	 
	 
	SECTION 9. GLASS
	 	 	11	 
	 
	SECTION 10. PERSONAL PROPERTY
	 	 	11	 
	 
	SECTION 11. RIGHT TO MORTGAGE
	 	 	12	 
	 
	SECTION 12. SUBLEASE OR ASSIGNMENT
	 	 	12	 
	 
	SECTION 13. COMMON AREAS
	 	 	13	 
	 
	SECTION 14. OPERATION OF COMMON AREAS
	 	 	13	 
	 
	SECTION 15. COMMON AREA MAINTENANCE, TENANT’S SHARE
	 	 	14	 
	 
	SECTION 16. EMINENT DOMAIN
	 	 	15	 
	 
	SECTION 17. TENANT’S TAXES
	 	 	16	 
	 
	SECTION 18. RISK OF GOODS
	 	 	16	 
	 
	SECTION 19. USE AND OCCUPANCY
	 	 	16	 
	 
	SECTION 20. NUISANCES
	 	 	18	 
	 
	SECTION 21. WASTE AND REFUSE REMOVAL
	 	 	19	 
	 
	SECTION 22. DAMAGE AND DESTRUCTION OF PREMISES
	 	 	19	 
	 
	SECTION 23. LANDLORD REPAIRS
	 	 	20	 
	 
	SECTION 24. TENANT’S REPAIRS
	 	 	20	 
	 
	SECTION 25. COVENANT OF TITLE AND PEACEFUL POSSESSION
	 	 	21	 
	 
	SECTION 26. TENANT’S AND LANDLORD’S INSURANCE; INDEMNITY
	 	 	21	 
	 
	SECTION 27. REAL ESTATE TAXES
	 	 	24	 
	 
	SECTION 28. TENANT’S INSURANCE CONTRIBUTION
	 	 	25	 
	 
	SECTION 29. FIXTURES
	 	 	25	 
	 
	SECTION 30. SURRENDER
	 	 	25	 
	 
	SECTION 31. HOLDING OVER
	 	 	26	 
	 
	SECTION 32. NOTICE
	 	 	26	 
	 
	SECTION 33. DEFAULT
	 	 	26	 
	 
	SECTION 34. WAIVER OF SUBROGATION
	 	 	28	 
	 
	SECTION 35. LIABILITY OF LANDLORD; EXCULPATION
	 	 	29	 
	 
	SECTION 36. RIGHTS CUMULATIVE
	 	 	29	 
	 
	SECTION 37. MITIGATION OF DAMAGES
	 	 	29	 
	 
	SECTION 38. SIGNS
	 	 	29	 
	 
	SECTION 39. ENTIRE AGREEMENT
	 	 	30	 
	 
	SECTION 40. TENANT’S PROPERTY
	 	 	30	 
	 
	SECTION 41. BINDING UPON SUCCESSORS
	 	 	30	 
	 
	SECTION 42. HAZARDOUS SUBSTANCES
	 	 	30	 
	 
	SECTION 43. TRANSFER OF INTEREST
	 	 	31	 
	 
	SECTION 44. ACCESS TO PREMISES
	 	 	31	 
	 
	SECTION 45. HEADINGS
	 	 	32	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 46. NON-WAIVER
	 	 	32	 
	 
	SECTION 47. SHORT FORM LEASE
	 	 	32	 
	 
	SECTION 48. ESTOPPEL CERTIFICATE
	 	 	32	 
	 
	SECTION 49. TENANT’S REIMBURSEMENT
	 	 	32	 
	 
	SECTION 50. TENANT’S TERMINATION RIGHT
	 	 	33	 
	 
	SECTION 51. NO BROKER
	 	 	33	 
	 
	SECTION 52. UNAVOIDABLE DELAYS
	 	 	33	 
	 
	SECTION 53. TIMELY EXECUTION OF LEASE
	 	 	33	 
	 
	SECTION 54. ACCORD AND SATISFACTION
	 	 	33	 
	 
	SECTION 55. WAIVER OF JURY TRIAL
	 	 	34	 
	 
	SECTION 56. LEASEHOLD FINANCING
	 	 	34	 

LIST OF EXHIBITS:

EXHIBIT “A” SITE PLAN

EXHIBIT “B” LEGAL DESCRIPTION

EXHIBIT “C” LANDLORD’S WORK

EXHIBIT “D” TENANT’S WORK

EXHIBIT “E” EXISTING USE EXCLUSIVES AND PROHIBITED USES

EXHIBIT “F” SIGNAGE

EXHIBIT “G” TENANT IMPROVEMENTS

EXHIBIT “H” INTENTIONALLY DELETED

EXHIBIT “I” SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

ii

 

L E A S E

     THIS
AGREEMENT OF LEASE, made this 27th day of November, 2006, by and between JLP-LYNNHAVEN VA
LLC, a Virginia limited liability company (hereinafter referred to as “Landlord”), with offices at
1798 Frebis Avenue, Columbus, Ohio 43206-3764, and DSW INC., an Ohio corporation (hereinafter
referred to as “Tenant”) with offices at 4150 East Fifth Avenue, Columbus, Ohio 43219.

W I T N E S S E T H:

SECTION 1. PREMISES

     (a) Landlord, in consideration of the rents to be paid and covenants and agreements to be
performed by Tenant, does hereby lease unto Tenant premises comprised of approximately 20,660
square feet of leasable space with an address of 2701 North Mall Drive, # 102, Virginia Beach,
Virginia 23452 (the “Premises”) in the shopping center owned by Landlord containing approximately
100,000 square feet of leasable space on approximately 15 acres and commonly known as Lynnhaven
East Shopping Center, in the City of Virginia Beach, Boroughs of Lynnhaven and Princess Anne and
State of Virginia (the “Center”). The location, size, and area of the Premises and of the Center
are substantially as shown on Exhibit “A” attached hereto and made a part hereof (the “Site
Plan”). A legal description of the Center is attached hereto as Exhibit “B” and made a
part hereof. The approximate dimensions of the Premises shall be 100’ x 200’ plus any additional
square footage for Tenant’s loading dock and/or receiving area.

     (b) The square footage specified in Section 1(a) shall be certified to Tenant by Landlord’s
architect prior to the Rent Commencement Date (defined in Section 3(b) below). Tenant shall have
ninety (90) days from the receipt of such certification to verify or object to Landlord’s
measurement. If Tenant objects to Landlord’s measurement within said ninety (90) day period, the
parties shall work together in good faith to resolve the differing square footage calculations. In
computing the square footage of the Premises, the Premises shall be measured from the exterior
surface of exterior walls and the middle of interior walls, excluding the square footage of any
mechanical and utility rooms, escalators, elevators, stairs and any other common area space located
within the Premises. If the square footage of the Premises as verified and confirmed by Tenant
pursuant to this Section 1(b) is less than the size specified in Section 1(a), Base Rent (defined
in Section 4(a) below) and other charges shall be proportionately adjusted, but the foregoing shall
not be construed as permitting a material variance in dimensions or area.

     (c) Landlord covenants that the Center is or shall be developed in accordance with the Site
Plan and that it shall be used as a retail shopping center throughout the term of this Lease.
Landlord shall not take or consent to any action which materially adversely affects access to,
visibility of, parking for or use of the Premises. Notwithstanding the foregoing, no modification
or replacement to the Center shall (i) reduce the ratio of parking spaces (for standard size
American cars) to gross leasable area of buildings in the Center below five (5) spaces per 1,000
square feet of leasable space, (ii) alter or make any changes, including any reduction or
rearrangement of parking spaces, to that portion of the Center indicated on the Site Plan as the
“Protected Area”, (iii) interfere with truck access to the loading doors of the Premises, (iv)
materially adversely interfere with customer access to the Premises, (v) materially adversely
interfere with the visibility of the Premises from the roads providing direct access to the Center,
or (vi) result in the construction of any buildings in the area designated “No Build Area” on the
Site Plan. In performing any construction work, repairs or maintenance in the Center permitted
under this Lease after Tenant has taken physical possession of the Leased Premises, Landlord shall
use good faith, commercially reasonable efforts to prevent any interference with parking for,
access to or visibility or use of the Premises or the business of Tenant or any subtenant or
licensee of Tenant.

SECTION 2. LANDLORD’S AND TENANT’S WORK

     (a) Prior to delivery of possession of the Premises to Tenant, Landlord shall construct, at
its expense, the improvements to the Premises described on Exhibit “C” attached hereto and
made a part hereof consistent with plans and specifications approved by Tenant as set

 

 

forth in Section 2(e) below (the “Landlord’s Work”). Landlord agrees to deliver the Premises
to Tenant with Landlord’s Work substantially completed (as defined in Section 2(c)) on or before
June 1, 2007 (the “Delivery Date”). Landlord shall give Tenant notice (the “Estimated Delivery
Notice”) no later than March 1, 2007 of the status of Landlord’s construction and the estimated
date that Landlord shall deliver the Premises to Tenant with Landlord’s Work substantially
completed (the “Estimated Delivery Date”). Landlord may revise the Estimated Delivery Date any
time prior to April 1, 2006 (the “Final Delivery Notice Date”), by which time Landlord shall have
given Tenant a final notice (the “Final Delivery Notice”) of a firm delivery date (the “Final
Delivery Date”) upon which the Landlord’s Work shall be substantially completed and the Leased
Premises delivered to Tenant. Upon the sending of the Final Delivery Notice, Landlord shall have
no further right to modify the Final Delivery Date. Neither the Estimated Delivery Date nor the
Final Delivery Date shall be (y) earlier than (i) thirty (30) days after the date Tenant receives
the Estimated Delivery Notice or the Final Delivery Notice, as applicable. If Landlord does not
provide a Final Delivery Notice on or before the earlier of the Final Delivery Notice Date and
thirty (30) days prior to the Estimated Delivery Date or if the date provided for in such Final
Delivery Notice does not comply with the requirements of this Section 2, the Estimated Delivery
Date shall be deemed to be the Final Delivery Date, provided such date complies with the
requirements of this Section 2. If Landlord does not provide an Estimated Delivery Date on or
before the Final Delivery Notice Date or if such date does not comply with the requirements of this
Section 2, then the Final Delivery Date shall be deemed to be the Delivery Date.

     (b) In the event that the Premises and Landlord’s Work are not substantially completed and
delivered to Tenant on or before the Final Delivery Date, the Base Rent due hereunder shall be
adjusted so that, after the Rent Commencement Date, Tenant shall receive a credit against Base Rent
thereafter due Landlord equal to one (1) day of Base Rent for each day after the Final Delivery
Date until delivery of the Premises is made to Tenant consistent with the terms of this Lease,
including substantial completion of the Landlord’s Work. Tenant shall not be obligated to accept
possession of the Premises prior to the later of (a) substantial completion of Landlord’s Work and
(b) the Final Delivery Date. Time is of the essence regarding all dates set forth in this Section
2.

     (c) For purposes of this Lease, the Landlord’s Work shall be deemed “substantially completed”
when (i) all of the Landlord’s Work has been completed except for “punch list items” that do not
affect the Tenant’s use of or the appearance of the Premises or Tenant’s ability to perform
Tenant’s Work (as defined in Section 2(f) below), (ii) Landlord has satisfied the requirements of
Section 2(g), and (iii) Tenant has been furnished with a fully executed non-disturbance agreement
from the holder(s) of any then existing Mortgages, which agreement is consistent with Section 11 of
this Lease. Landlord shall complete the punch list items within thirty (30) days of the date
Tenant notifies Landlord of same. Upon performance of such punch list, Tenant shall promptly
acknowledge Landlord’s completion thereof. Punch list items shall not be deemed completed until an
authorized representative of Tenant has provided Landlord written acknowledgment of same. Landlord
agrees that any and all work performed by Landlord after delivery of the Leased Premises to Tenant
shall not unreasonably interfere with Tenant’s performance of Tenant’s Work, and Landlord shall be
responsible for any and all costs resulting from any such unreasonable interference.

     (d) Actual possession of the Premises shall have been delivered to Tenant water-tight, free of
Hazardous Substances, in a good, structurally sound condition, with all of Landlord’s Work
substantially completed, which substantial completion shall be evidenced by Landlord’s architect to
Tenant.

     (e) The Landlord’s Work and Tenant’s Work shall be performed (i) in a good and workmanlike
manner and in accordance with plans and specifications approved by the other party, which approval
shall not be unreasonably withheld or delayed and (ii) in compliance with all applicable
governmental codes, laws, ordinances and regulations.

     (f) Landlord and Tenant agree that they shall conduct a joint walk through of the Premises
approximately two (2) weeks prior to the Final Delivery Date to ascertain the status of Landlord’s
construction. Tenant agrees to provide, at its expense, upon delivery of the Premises to Tenant,
the improvements to the Premises described on Exhibit “D” attached hereto and made a part
hereof (the “Tenant’s Work”).

4

 

     (g) Completion of Construction of Leased Premises. Prior to the Final Delivery Date,
Landlord shall satisfy the following conditions:

1. Landlord shall furnish Tenant with a temporary certificate of occupancy and other
necessary approvals which must be issued by the appropriate governmental authorities
prior to the commencement of Tenant’s Work and the occupancy and use of the Premises
as contemplated. Landlord agrees to provide a permanent certificate of occupancy
prior to Tenant’s merchandising and, if required by the issuing authority, the
setting of fixtures for the Premises, and otherwise as soon as available in the
ordinary course of the issuing authority’s practice.

2. The architect engaged by Landlord shall execute a certificate of completion that
the Premises has been constructed in a good and workmanlike manner in accordance
with the plans and specifications approved by Tenant and the other requirements for
Landlord’s Work hereunder.

3. Tenant shall have been furnished with a fully executed original of a commercially
reasonable non-disturbance and attornment agreement pursuant to Section 11 hereof.

4. Tenant shall have been notified no later than one hundred twenty (120) days prior
to the Final Delivery Date of all applicable local governmental authority code
requirements, if any, for the installation of Tenant’s fixtures at the Premises and
for low voltage electrical work in connection with the installation of Tenant’s
music, telephone and security systems at the Premises.

5. Tenant shall have been furnished with a list of all subcontractors who performed
work on the Premises, along with direct contact information for, the work discipline
of, and the work performed by each.

6. Tenant shall have been furnished with two (2) copies of all contractors’,
subcontractors’ and suppliers’ warranties relating to the Premises.

7. Tenant shall have been furnished with two (2) copies of all operations and
maintenance manuals relating to materials and systems used or installed in the
construction of the Premises.

8. Tenant shall have been furnished with two (2) copies of the record drawings for
the construction of the Premises, marked to reflect actual locations of all
components of the Premises.

     (h) In addition to any guarantees provided to Tenant elsewhere in this Lease, Landlord hereby
unconditionally guarantees all of Landlord’s Work against defective workmanship and materials for
one (1) year from the Commencement Date (as defined in Section 3(a)).

     (i) Landlord shall perform any additional work not required to be performed by Tenant under
this Lease in order for Landlord to obtain a permanent certificate of occupancy for the Premises,
whether such work relates to the Premises or other portions of the Center.

SECTION 3. TERM

     (a) The “Commencement Date” of this Lease shall be the later of (i) the date actual, physical
possession of the Premises is delivered to Tenant with the Landlord’s Work substantially completed
and (ii) the Final Delivery Date.

     (b) The initial term (the “Initial Term”) of the Lease shall commence on the earlier of (i)
the date on which the Tenant opens for business in the Premises, and (ii) ninety (90) days after
the Commencement Date (the “Rent Commencement Date”) and end on the last day of the fifteenth
(15th) full Lease Year. The term “Lease Year” shall mean a period of twelve (12)
consecutive calendar months. The first Lease Year during the term hereof shall commence on the
first day of the first February following the Rent Commencement Date. Each subsequent

5

 

Lease Year shall begin on the anniversary of the first Lease Year. The period from the Rent
Commencement Date to the first day of the first February following the Rent Commencement Date (the
“Initial Period”) shall be a partial Lease Year.

     (c) If for any reason, the Commencement Date has not occurred by September 1, 2007, Tenant
shall have the right and option to either (i) terminate this Lease or (ii) elect that the
Commencement Date not occur, and, thereby defer delivery of the Leased Premises, until January 2,
2008. The remedies set forth in this paragraph shall be in addition to any and all other rights
and remedies provided for Tenant in the Lease or available to Tenant in law or at equity.

     (d) Tenant shall have three (3) consecutive separate options to extend the term of this Lease
for successive renewal terms of five (5) Lease Years each. Tenant may exercise each such renewal
option by giving written notice to Landlord at least one-hundred eighty (180) days prior to the end
of the then current term or renewal term.

     (e) The Initial Term and any renewal terms are hereinafter collectively referred to as the
“term”.

     (f) Beginning on the date of this Lease and ending on the Commencement Date, Tenant, its
employees and agents shall have the right to enter the Premises or any part thereof at reasonable
times during regular business hours for the purpose of making such inspections as Tenant may deem
reasonably necessary. In consideration of Tenant’s right to inspect the Premises, Tenant agrees to
indemnify, defend and hold Landlord harmless from any and all loss, damage, claims, costs, demands
or expenses (including reasonable attorney’s fees) resulting from such entry on the Premises by
Tenant or its agents.

     (g) From the date upon which the Premises are delivered to Tenant for its work until the
Commencement Date of the lease term, Tenant shall observe and perform all of its obligations under
this Lease (except Tenant’s obligation to operate and pay Base Rent, percentage rent and Tenant’s
Proportionate Share (defined in Section 15(c) below) of “Maintenance Costs” (defined and provided
for in Section 15(b) hereof Real Estate Taxes (defined and provided for in Section 27(b) hereof)
and insurance (provided for in Section 28 hereof). In the event Tenant fails to open for business
within one hundred twenty (120) days after the date possession of the Premises has been delivered
to Tenant, Landlord, in addition to any and all other available remedies, may require Tenant to pay
to Landlord, in addition to all other rent and charges herein, as liquidated damages and not as a
penalty, an amount equal to one-three hundred sixty five thousandths (1/365) of the annual Base
Rent for each day such failure to open continues.

SECTION 4. MINIMUM RENT

     From and after the Rent Commencement Date, Tenant covenants and agrees to pay on a monthly
basis during the term “Base Rent” in the following amounts to Landlord at the address listed above
or such other place as Landlord may by thirty (30) days’ prior written notice to Tenant direct:

     (a) For the Initial Term of the Lease Tenant agrees to pay to Landlord, as Base Rent for the
Premises, equal consecutive monthly installments of Twenty-five Thousand Dollars ($25,000.00)
[which is calculated at Twenty Dollars ($20.00) per square foot using 15,000 square feet as the
size of the Premises], commencing on the Rent Commencement Date, and continuing on the first day of
each calendar month during the Initial Term of the Lease. Notwithstanding the foregoing, in the
event Tenant’s annual gross sales from the Premises reach Four Million One-hundred Forty Thousand
Dollars ($4,140,000.00) in any Lease Year during the Initial Term hereof (the “Gross Sales
Threshold”), then Tenant agrees to pay to Landlord, as Base Rent for the Premises in each lease
year thereafter, equal consecutive monthly installments of Thirty Thousand Dollars ($30,000,00)
[which is calculated at Twenty Dollars ($20.00) per square foot using 18,000 square feet as the
size of the Premises], commencing on the first month of the Lease Year following Tenant’s annual
statement of gross sales evidencing the Gross Sales Threshold which statement shall provided to
Landlord in accordance with Section 6 (e) below. Notwithstanding the foregoing, in the event
Tenant’s annual gross sales from the Premises reach Four Million Seven Hundred Fifty-one Thousand
Eight Hundred Dollars ($4,751,800.00) in any Lease Year during the Initial Term hereof (the “Second
Gross Sales Threshold”) then Tenant

6

 

agrees to pay to Landlord in each Lease Year thereafter, as Base Rent for the Premises, equal
monthly installments of Thirty-four Thousand Four Hundred Thirty-three and 33/100 Dollars
($34,433.33) [which is calculated at Twenty Dollars ($20.00) per square foot using 20,660 square
feet as the size of the Premises], commencing on the first month of the Lease Year following
Tenant’s annual statement of gross sales evidencing the Second Gross Sales Threshold which
statement shall be provided to Landlord in accordance with Section 6 (e) below. The square feet
figures set forth above which are used to calculate Base Rent payments under this Section 4(a)
shall be referred to as “Rentable Square Feet”. The monthly installments of Base Rent payable
under this Section 4 shall be paid in advance on or before the first day of each calendar month
from and after the Rent Commencement Date during the term hereof without notice or demand therefor
and without any offsets or deductions whatsoever except as otherwise provided in this Lease. Base
Rent for any partial month shall be prorated based upon a thirty (30) day month. Base Rent for any
Initial Period shall be the same as the Base Rent for the first Lease Year. As used in this Lease,
“Rent” shall mean Base Rent in addition to all other sums due and owing from Tenant to Landlord
under this Lease.

     (b) Provided Tenant has fully complied with all of the terms, provisions, and conditions on
its part to be performed under this Lease and is not in default under this Lease, Tenant may, by
giving written notice to the Landlord at least six (6) months on or before the expiration of the
Initial Term of this Lease, extend such term for a period of five (5) years upon the same covenants
and agreements as are herein set forth. The Base Rent during the first renewal term shall be the
same as the Base Rent paid by Tenant in Lease Year fifteen (15) of the Initial Term hereof unless
Tenant’s annual gross sales from the Premises reach Five Million Dollars ($5,000,000.00), whereupon
Base Rent shall be increased by ten percent (10%) for the Lease Years remaining in such first
renewal term.

     (c) Provided Tenant has fully complied with all of the terms, provisions, and conditions on
its part to be performed under this Lease and is not in default under this Lease, Tenant may, by
giving written notice to the Landlord at least six (6) months on or before the expiration of the
first renewal term of this Lease, extend such term for a period of five (5) years upon the same
covenants and agreements as are herein set forth. The Base Rent during the second renewal term
shall be the same as the Base Rent paid by Tenant in the last Lease Year of the first renewal term
unless Tenant’s annual gross sales from the Premises reach Five Million Dollars ($5,000,000.00),
whereupon Base Rent shall be increased by ten percent (10%) for the Lease Years remaining in such
second renewal term.

     (d) Provided Tenant has fully complied with all of the terms, provisions, and conditions on
its part to be performed under this Lease and is not in default under this Lease, Tenant may, by
giving written notice to the Landlord at least six (6) months on or before the expiration of the
second renewal term of this Lease, extend such term for a period of five (5) years upon the same
covenants and agreements as are herein set forth. The Base Rent during the third renewal term
shall be the same as the Base Rent paid by Tenant in the last Lease Year of the second renewal term
unless Tenant’s annual gross sales from the Premises reach Five Million Dollars ($5,000,000.00),
whereupon Base Rent shall be increased by ten percent (10%) for the Lease Years remaining in such
third renewal term. The initial term and any renewal term(s) are hereinafter collectively referred
to as the “term”.

     (e) In the event any sums required under this Lease to be paid are not received when due, then
all such amounts shall bear interest from the due date thereof until the date paid at the rate of
interest equal to two percent (2%) over the prime rate in effect from time to time as established
by National City Bank, Columbus, Ohio (the “Interest Rate”), and shall be due and payable by Tenant
without notice or demand, Tenant shall pay the foregoing interest thereon in addition to all
default remedies of Landlord pursuant to Section 33 below.

     (f) Notwithstanding anything herein contained to the contrary, Tenant shall initially pay to
Landlord as additional Rent, simultaneously with the payment of Base Rent, payable in equal monthly
installments, the estimated monthly amount of Tenant’s Proportionate Share of Maintenance Costs
(provided for in Section 15 hereof), Real Estate Taxes (provided for in Section 27 hereof) and
insurance (provided for in Section 28 hereof).

7

 

SECTION 5. PERCENTAGE RENT

     (a) Beginning with the first Lease Year, Tenant shall pay to Landlord, in addition to Base
Rent, upon the conditions and at the times hereinafter set forth, percentage rent equal to two
percent (2%) of Tenant’s gross sales (as hereinafter defined) in excess of the number obtained by
dividing (a) Base Rent for the applicable lease year by (b) the number .02. The annual percentage
rent shall be paid by Tenant to Landlord within ninety (90) days after the end of each Lease Year.
Each such payment shall be accompanied by a statement signed by an authorized representative of
Tenant setting forth Tenant’s gross sales for such Lease Year. For purposes of permitting
verification by Landlord of the gross sales reported by Tenant, Landlord shall have the right, not
more than one (1) time per Lease Year, upon not less than five (5) business days notice to Tenant,
to audit during normal business hours in Tenant’s corporate office, Tenant’s books and records
relating to Tenant’s gross sales for a period of two (2) years after the end of each Lease Year.
Landlord agrees that no contingency fee auditor shall be employed by Landlord for the purpose of
conducting any such audit. If such an audit reveals that Tenant has understated its gross sales by
more than three percent (3%) for any Lease Year, Tenant, in addition to paying the additional
percentage rent due, shall pay the reasonable cost of the audit within thirty (30) days of Tenant’s
receipt of Landlord’s demand for the same and copies of all bills or invoices on which such cost is
based.

     (b) Each Lease Year shall constitute a separate accounting period, and the computation of
percentage rental due for any one period shall be based on the gross sales for such Lease Year.

     (c) The term “gross sales” as used in this Lease is hereby defined to mean the gross dollar
aggregate of all sales or rental or manufacture or production of merchandise and all services,
income and other receipts whatsoever of all business conducted in, at or from any part of the
Premises, whether for cash, credit, check, charge account, gift or merchandise certificate
purchased or for other disposition of value regardless of collection. Should any departments,
divisions or parts of Lessee’s business be conducted by any subleases, concessionaires, licensees,
assignees or others, then there shall be included in Lessee’s gross sales, all “gross sales” of
such department, division or part, whether the receipts be obtained at the Premises or elsewhere in
the same manner as if such business had been conducted by Lessee. Gross sales shall exclude the
following: (i) all credit, refunds, and allowances granted to customers; (ii) all excise taxes,
sales taxes, and other taxes levied or imposed by any governmental authority upon or in connection
with such sales; (iii) bulk sales of goods in connection with the sale of Tenant’s business; (iv)
sales of fixtures, furniture, equipment and other items not made in the ordinary course of
business; (v) salvage sales of damaged merchandise; (vi) discount sales made to employees of the
Tenant and Tenant’s subsidiaries and affiliated corporations, if any; (vii) exchanges of
merchandise between Tenant’s warehouse or other stores and other similar movements of merchandise;
(viii) returns to suppliers; (ix) the proceeds from vending machines and coin operated telephones
and commissions on such proceeds to the extent such proceeds and commissions are less than five
percent (5%) of Gross Sales exclusive of such proceeds and commissions; (x) uncollectible customer
charges and bad checks; (xi) disallowed credit card amounts and credit card service charges or fees
retained by the credit card company; (xii) delivery charges; and (xiii) customer credit insurance.

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

     (e) Tenant shall at all times maintain accurate records which shall be available for
Landlord’s inspection at any reasonable time.

8

 

     (f) If Landlord, for any reason, questions or disputes any statement of percentage rental
prepared by Tenant, then Landlord, at its own expense, may employ such non-contingency fee
accountants as Landlord may select to audit and determine the amount of gross sales for the period
or periods covered by such statements. If the report of the accountants employed by Landlord shall
show any additional percentage rental payable by Tenant, then Tenant shall pay to Landlord such
additional percentage rental plus interest at one (1) point over the prime rate, commencing on the
date such percentage rentals should have been paid, within thirty (30) days after such report has
been forwarded to Tenant, unless Tenant shall, within said thirty (30) day period, notify Landlord
that Tenant questions or disputes the correctness of such report. In the event that Tenant
questions or disputes the correctness of such report, the accountants employed by Tenant and the
accountants employed by Landlord shall endeavor to reconcile the question(s) or dispute(s) within
thirty (30) days after the notice from Tenant questioning or disputing the report of Landlord’s
accountants. In the event that it is finally determined by the parties that Tenant has understated
percentage rent for any Lease year by three percent (3%) or more, Tenant shall pay the cost of the
audit. Furthermore, if Tenant’s gross sales cannot be verified due to the insufficiency or
inadequacy of Tenant’s records, then Tenant shall pay the cost of the audit. The cost of any audit
resulting from failure to report percentage rent after written notification of default shall be at
the sole cost of Tenant.

SECTION 6. TITLE ENCUMBRANCES; LANDLORD REPRESENATATIONS, WARRANTIES AND COVENANTS 

     (a) Tenant’s rights under this Lease are subject and subordinate to those title matters set
forth in Landlord’s owner’s title policy issued by First American Title Insurance Company, being
Policy No. 104036716 VMDO, dated April 19, 2006, a copy of which has been provided to Tenant,
specifically including but not limited to the terms and conditions of a certain Total Site
Agreement by and between Lynnhaven Mall Company, a Virginia limited partnership and the Estate of
Jack Stein, Arthur H. Stein, Edward S. Stein, Robert M. Stein and Barbara S. Feldman, First &
Merchants National Bank as Trustee under Trust Agreement dated December 8, 1978 and known as Trust
No. 1, Carrie M. Stein, Joanne F. Stein and Jane P. Stein, recorded December 21, 1978, in Book
1856, Page 335, Circuit Court of Virginia Beach, Virginia as amended by that certain Declaration by
and between Arthur H. Stein, Edward S. Stein, Robert M. Stein and Barbara F. Fischer, Carrie M.
Stein, Joanne P. Stein and Jane P. Stein, recorded February 15, 1985 in Book 2392, Page 171,
Circuit Court of Virginia Beach, Virginia along with that certain Declaration of Protective
Covenants and Restrictions by and between the City of Virginia Beach Development Authority and
Robert M. Stein, Barbara S. Feldman, Arthur H. Stein, Carrie M. Stein, Robert M. Stein, Joanne F.
Stein, Edward S. Stein, Jane P. Stein, Annette K Stein and Robert M. Stein recorded on December 21,
1978, in Book 1856, Page 186, Circuit Court of Virginia Beach, Virginia (collectively the “REA”)
Tenant agrees that it shall abide by the terms and conditions of the REA.

     (b) Landlord covenants, represents and warrants to Tenant that: (i) the REA has not been
modified, amended or terminated except as set forth above; (ii) the REA is currently in full force
and effect; (iii) to its actual knowledge as of the date hereof, no default under the REA exists
thereunder beyond any applicable notice and cure period; and (iv) the REA is, and shall remain,
superior in lien to all mortgages and related liens affecting the Center and all other land which
is encumbered by the REA. Tenant shall comply with the terms and conditions of the REA to the
extent same affects the Premises (it being agreed that Tenant shall not be obligated to expend any
sums in connection with such compliance).

     (c) Landlord shall, during the term: (i) perform and observe all of the terms, covenants,
provisions and conditions of the REA on Landlord’s part to be performed and observed; (ii) defend,
indemnify and hold harmless Tenant from and against and all claims, demands, causes of action,
suits, damages, liabilities and expenses of any nature arising out of or in connection with the
enforcement of, or a claimed breach by, Landlord of any covenant, term, condition or provision of
the REA; and (iii) diligently enforce, at its sole expense, the covenants, agreements and
obligations of the REA.

     (d) Whenever, pursuant to the REA, the consent or approval of Landlord shall be required by or
requested, and such consent or approval could diminish the rights or increase the obligations of
Tenant thereunder or under this Lease, or could adversely affect Tenant’s use or
occupancy of the Premises, or the conduct of Tenant’s business therein, such consent or
approval

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shall not be granted without the prior written consent of Tenant, which consent may be
withheld in its sole and absolute discretion.

     (e) Landlord shall not amend, or modify the REA if such amendment or modification could
diminish the rights or increase the obligations of Tenant thereunder of under this Lease, or could
adversely affect Tenant’s use or occupancy of the Premises or the conduct of Tenant’s business
therein, nor shall Landlord terminate the REA.

     (f) Landlord further represents, warrants and/or covenants:

1. That it has the right to enter into this Lease and that the person(s) signing
this Lease on its behalf has authority to enter into this Lease and to bind Landlord
to the terms, covenants and conditions contained herein.

2. That it has good and marketable fee simple title to the Premises and the Center
is free and clear of all easements, restrictions, liens and encumbrances except as
described in Section 6(a) above.

3. That the Premises, including without limitation, the roof and HVAC system, are or
as of the Commencement Date shall be, in good condition and repair.

4. That the Premises is, or as of the Commencement Date shall be, properly zoned for
use by the Tenant as a retail footwear location and there are no restrictive
covenants or other title encumbrances which restrict in any way the use of the
Premises as a retail footwear location.

5. That Landlord has, or as of the Commencement Date shall have, obtained all
necessary approvals and permits from appropriate governmental authorities for the
development of the Center in accordance with the Site Plan and for the construction
and occupancy of the Premises by Tenant as a retail footwear location.

6. That Landlord has not entered into, and shall not hereafter prior to the
expiration or termination of this Lease enter into, any leases, agreements or
restrictive covenants that would prohibit or interfere with the use of the Premises
by the Tenant as a retail footwear location.

7. In the event the legal description of the Center described on Exhibit “B”
hereto indicates that the Center is composed of more than one (1) parcel or lot,
there exists no strips or gores between such parcels or lots which are not owned by
Landlord.

8. No third-party consents or approvals are required in order for Landlord to enter
into this Lease, or for the performance of Landlord’s Work.

9. The Center now has, and on the Commencement Date shall have, access to and from
Lynnhaven Parkway and North Mall Drive, as shown on the Site Plan, for the passage
of vehicular traffic.

10. As of the date of this Lease, there are no sign ordinances, restrictive
covenants, uniform sign plans or other signage restrictions which would prevent the
Premises from having the signage (including, without limitation, the square foot
area and size of letters) as depicted on Exhibit “F” hereof.

SECTION 7. RIGHT TO REMODEL

     (a) Tenant may, at Tenant’s expense, make repairs and alterations to the interior
non-structural portions of the Premises and remodel the interior of the Premises, excepting
structural and exterior changes, in such manner and to such extent as may from time to time be
deemed necessary by Tenant for adapting to the Premises to the requirements and uses of Tenant and
for the installation of its fixtures, appliances and equipment. Any structural or exterior
alteration may only be made by Tenant with the prior written approval of Landlord, which approval
may be
granted or withheld in Landlord’s sole discretion. All plans for any structural alterations
shall

10

 

be submitted to Landlord for endorsement of its approval prior to commencement of work. Upon
Landlord’s request, Tenant shall be obligated, if it remodels and/or alters the Premises, to
restore the Premises upon vacating the same. Tenant will indemnify and save harmless the Landlord
from and against all mechanics liens or claims by reason of repairs, alterations or improvements
which may be made by Tenant to the Premises. Inasmuch as any such alterations, additions or other
work in or to the Premises may constitute or create a hazard, inconvenience or annoyance to the
public and other tenants in the Center, Tenant shall, if so directed in writing by Landlord, erect
barricades, temporarily close the Premises, or affected portion thereof, to the public or take
whatever measures are necessary to protect the building containing the Premises, the public and the
other tenants of the Center for the duration of such alterations, additions or other work. If
Landlord determines, in its sole judgment, that Tenant has failed to take any of such necessary
protective measures, and Tenant fails to cure same within ten (10) days after notice thereof,
Landlord may do so and Tenant shall reimburse Landlord for the cost thereof within ten (10) days
after Landlord bills Tenant therefor.

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

SECTION 8. UTILITIES

     (a) Prior to the Commencement Date, Landlord shall provide, at Landlord’s expense, by separate
meter, electric, water, sewer, and other utilities to the Premises sufficient to meet Tenant’s
requirements. Landlord shall further provide, or cause to be provided, all such utility services
to the Premises during the term of this Lease. Tenant agrees to be responsible and pay for all
public utility services rendered or furnished to the Premises during the term hereof, including,
but not limited to, heat, water, gas, electric, steam, telephone service and sewer services,
together with all taxes, levies or other charges on such utility services when the same become due
and payable. Tenant shall be responsible for all utility services and costs inside the premises.
Landlord shall not be liable for the quality or quantity of or interference involving such
utilities unless due directly to Landlord’s negligence.

     (b) During the term hereof, whether the Premises are occupied or unoccupied, Tenant agrees to
maintain heat sufficient to heat the Premises so as to avert any damage to the Premises on account
of cold weather.

     (c) Tenant agrees to be responsible for its rubbish removal from the Premises. Tenant shall
be permitted to maintain and operate, at no extra charge: (i) a trash compactor in the portion of
the Common Areas designated on Site Plan as “Trash Compactor Pad”; and (ii) a trash container(s) in
the portion(s) of the Common Areas designated on Site Plan as “Trash Container Pad”. Tenant, at
its sole cost and expense, shall keep the trash compactor and containers neat and clean and repair
any damage caused by use and storage of such compactor and containers.

SECTION 9. GLASS

     The Tenant shall maintain the glass part of the Premises, promptly replacing any breakage and
fully saving the Landlord harmless from any loss, cost or damage resulting from such breakage or
the replacement thereof.

SECTION 10. PERSONAL PROPERTY

     The Tenant further agrees that all personal property of every kind or description that may at
any time be in or on the Premises shall be at the Tenant’s sole risk, or at the risk of those
claiming under the Tenant, and that the Landlord shall not be liable for any damage to said
property or loss suffered by the business or occupation of the Tenant caused in any manner
whatsoever.

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SECTION 11. RIGHT TO MORTGAGE

     (a) Landlord reserves the right to subject and subordinate this Lease at all times to the lien
of any deed of trust, mortgage or mortgages now or hereafter placed upon Landlord’s interest in the
Premises; provided, however, that no default by Landlord, under any deed of trust, mortgage or
mortgages, shall affect Tenant’s rights under this Lease, so long as Tenant performs the
obligations imposed upon it hereunder and is not in default hereunder, and Tenant attorns to the
holder of such deed of trust or mortgage, its assignee or the purchaser at any foreclosure sale.
Any such subordination shall be contingent upon Tenant receiving a commercially reasonable
subordination, non-disturbance and attornment agreement (“SNDA”). It is a condition, however, to
the subordination and lien provisions herein provided, that Landlord shall procure from any such
mortgagee an agreement in writing, which shall be delivered to Tenant or contained in an SNDA,
providing in substance that so long as Tenant shall faithfully discharge the obligations on its
part to be kept and performed under the terms of this Lease and is not in default under the terms
hereof, its tenancy will not be disturbed nor this Lease affected by any default under such
mortgage. The parties acknowledge that the SNDA attached hereto as Exhibit “I” is
commercially reasonable. Landlord represents and warrants that, as of the date of this Lease and
the Commencement Date, there are no mortgages, ground leases or other encumbrances that could
dispossess Tenant’s leasehold interest hereunder (collectively, “Mortgages”) on Landlord’s fee
title to the Center other than that certain Deed of Trust, Assignment of Rents and Security
Agreement granted by Landlord in favor of Key Bank National Association and recorded on September
6, 2006 in the City of Virginia Beach Recorder’s Office as Document Number 20060906001348180 (the
“Mortgage”). Landlord agrees that Tenant’s obligations under this Lease shall be contingent upon
Tenant entering into an SNDA with the holder of such Mortgage on or before the Commencement Date.

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

SECTION 12. SUBLEASE OR ASSIGNMENT

     (a) Tenant may assign Tenant’s interest in this Lease or sublet all or any portion of the
Premises to a nationally or regionally recognized retailer without Landlord’s consent. Any other
assignment or subletting not specifically provided for in this Section 12 shall be subject to
Landlord’s prior written consent, which consent shall not be unreasonably withheld. Landlord’s
review of the proposed assignee or subtenant shall be limited to business reputation, business
experience, a retail use compatible with then existing tenant mix of the Center, and financial
ability to perform its obligations under this Lease or the proposed sublease, as the case may be.
In any such event, Tenant shall remain fully and primarily liable hereunder. Tenant’s right to
assign or sublet shall be subject to any then existing exclusives or primary use exclusives for
tenants leasing more than 15,000 square feet of space in the Center.

     Tenant may, without the consent of Landlord, (i) grant licenses and/or concessions within the
Premises or (ii) assign or sublet all or any portion of the Premises to (a) any parent, affiliate
or subsidiary corporation of Tenant; (b) a transferee or successor by merger, consolidation or
acquisition of Tenant or its parent or subsidiary; or (c) a transferee with a good business
reputation who is acquiring all or substantially all of the stores of Tenant in the State of
Virginia or the assets of Tenant, its parent or subsidiary. Any such assignee or sublessee shall
be bound by the terms of this Lease. Tenant shall deliver to Landlord in the ordinary course of
its business an instrument whereby the assignee or entity succeeding to Tenant’s interest hereunder
agrees to be bound by the terms of this Lease.

     (b) Landlord may assign Landlord’s interest in this Lease without the consent of Tenant (a) to
any entity to which Landlord transfers its fee interest in the Premises provided such entity (i)
agrees in writing to be bound by all the terms of this Lease and (ii) such assignment is pursuant
to a bona fide arm’s length transaction not designed to reduce Landlord’s liability or to otherwise
exempt Landlord from any provision of this Lease or (b) subject to Section 12, as security for any
indebtedness undertaken by Landlord.

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SECTION 13. COMMON AREAS

     Landlord grants to Tenant and its customers, agents, employees, licensees, invitees and
subtenants, a non-exclusive easement in common with the other tenants of the Center for the use of
all Common Areas. Landlord hereby covenants and agrees that Landlord shall not grant any party
other than tenants of the Center and their customers, agents, employees, licensees, invitees and
subtenants a right to utilize the parking areas in the Center, and Landlord shall use commercially
reasonable efforts to restrict the use of the parking areas to such parties. “Common Areas” means
all areas and facilities in the Center provided and so designated by Landlord and made available by
Landlord in the exercise of good business judgment for the common use and benefit of tenants of the
Center and their customers, employees and invitees. Common Areas shall include (to the extent the
same are constructed), but not be limited to, the parking areas, sidewalks, landscaped areas,
corridors, stairways, boundary walls and fences, incinerators, truckways, service roads, and
service areas not reserved for the exclusive use of Tenant or other tenants.

SECTION 14. OPERATION OF COMMON AREAS

     (a) From and after the Commencement Date, Landlord, at its cost and expense, shall operate the
Center and maintain the Common Areas and the Center in a clean and safe condition and repair so
that Tenant and its customers, guests, invitees, licensees, officers and employees can use and
enjoy the same. The obligations of Landlord pursuant hereto shall include, without limitation, the
maintenance of the Center and any pylon structure(s) (excluding therefrom Tenant’s advertising
panels), regular cleaning of the Common Areas, removal of trash and debris from the Common Areas,
repairing the asphalt and concrete portions of the Common Areas (including potholes, curbs and
sidewalks), repairing common utility lines and facilities, repairing storm drains, repairing
parking lot lights, maintaining the landscaped portion of the Common Areas (including regular grass
cutting), maintaining floodlights and other necessary means of illumination sufficient to
illuminate the Common Areas during twilight and evening hours that Tenant’s store is open for
business and in operation, prompt removal of snow and ice on every occasion where safety of the
Common Areas or access to the Premises is impeded, and periodic restriping of the parking area.
Landlord covenants that such maintenance and repair shall be planned and preventative maintenance
undertaken in order to maintain the Common Areas in a good and usable condition and so as to avoid
any breakdown of maintenance and avoidable costly repairs. Landlord shall at all times have
exclusive control of the Common Areas and may at any time and from time to time: (i) promulgate,
modify and amend reasonable rules and regulations for the use of the Common Areas, which rules and
regulations shall be binding upon Tenant upon delivery of a copy thereof to Tenant; (ii)
temporarily close any part of the Common Areas, including but not limited to closing the streets,
sidewalks, road or other facilities to the extent necessary to prevent a dedication thereof or the
accrual of rights of any person or of the public therein; (iii) exclude and restrain anyone from
the use or occupancy of the Common Areas or any part thereof except bona fide customers and
suppliers of the tenants of the Center who use said areas in accordance with the rules and
regulations established by Landlord; and (iv) engage others to operate and maintain all or any part
of the Common Areas, on such terms and conditions as Landlord shall, in its sole judgment, deem
reasonable and proper; and (v) make such changes in the Common Areas as in its opinion are in the
best interest of the Center, including but not limited to changing the location of walkways,
service areas, driveways, entrances, existing automobile parking spaces and other facilities,
changing the direction and flow of traffic and establishing prohibited areas; provided, however,
that any such change shall be subject to the terms and conditions of Section 1(c) of this Lease.

     (b) Tenant shall keep all Common Areas free of obstructions created or permitted by Tenant.
Tenant shall permit the use of the Common Areas only for normal parking and ingress and egress by
its customers and suppliers to and from the Premises. If in Landlord’s opinion unauthorized
persons are using any of the Common Areas by reason of Tenant’s occupancy of the Premises, Landlord
shall have the right at any time to remove any such unauthorized persons from said areas or to
restrain unauthorized persons from said areas. Landlord, Tenant, and others constructing
improvements or making repairs or alterations in the Center shall have the right to make reasonable
use of portions of the Common Areas.

     (c) Throughout the term, Landlord shall keep the Common Areas fully lighted and open to the
customers of the Center seven (7) days a week from dusk until 11:00 p.m. Monday

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through Saturday
and until 7:00 p.m. on Sunday (“Normal Hours”). Upon request of Tenant, Landlord shall keep the
Common Areas lighted for as long as after Normal Hours as Tenant shall request, provided Tenant
shall pay for a share of the reasonable cost of said requested lighting, which share shall be equal
to the product of (i) such costs, and (ii) a fraction, the numerator of which shall be the number
of square feet of leasable space within the Premises and the denominator of which shall be the
aggregate number of square feet of leasable space of all premises within the Center (including the
Premises) open later than Normal Hours (excluding, however, those tenants and occupants who
separately control and pay for their own Common Area lighting). In addition to the foregoing,
Landlord shall provide for low level security lighting from one (1) hour after the close of
business in the Premises until dawn.

SECTION 15. COMMON AREA MAINTENANCE, TENANT’S SHARE

     (a) Tenant shall initially pay to Landlord as additional rental, simultaneously with the
payment of Base Rent called for under Section 4(a), the estimated monthly amount of Tenant’s
Proportionate Share of the “Maintenance Costs” (as defined in Section 15(b) below) for the
operation and maintenance of the Common Areas as set forth in Section 4(c), One and 75/100 Dollars
($1.75) per square foot based on the Rentable Square Feet then in effect under Section 5(a) above.

     (b) The Maintenance Costs for the common areas shall be computed on an accrual basis, under
generally accepted accounting principles, and shall include all costs of operating, maintaining,
repairing and replacing the common areas, including by way of example but not limitation: (i) cost
of labor (including worker’s compensation insurance, employee benefits and payroll taxes); (ii)
materials, and supplies used or consumed in the maintenance or operation of the common area; (iii)
the cost of operating and repairing of the lighting; (iv) cleaning, painting, removing of rubbish
or debris, snow and ice, private security services, and inspecting the common areas; (v) the cost
of repairing and/or replacing paving, curbs, walkways, markings, directional or other signs;
landscaping, and drainage and lighting facilities; (vi) rental paid for maintenance of machinery
and equipment; and (vii) a reasonable allowance to Landlord for Landlord’s supervision, which
allowance shall not in an accounting year exceed five percent (5%) of the total of all Maintenance
Costs (excluding insurance costs) for such accounting year (all of the foregoing are collectively
referred to herein as “Maintenance Costs”). Notwithstanding the foregoing, the following shall be
excluded, deducted or credited from Maintenance Costs when computing Tenant’s Proportionate Share
of same: (a) Net recoveries received by Landlord from tenants as a result of any act, omission,
default or negligence or as the result of breaches by tenants of the provisions of their leases
and/or other amounts received by Landlord from third parties, which recoveries and/or amounts
reimburse Landlord for or reduce Maintenance Costs; (b) Gross revenues from charges, if any, made
for the use of the parking facilities and other Common Areas or facilities of the Center
(including, without limitation, the sale or rental of advertising space); (c) The cost of the land
underlying and the construction of the Center, whether initially or in connection with any
replacement or expansion thereof and whether mandated by law or otherwise, including, without
limitation, costs of correcting (I) defective conditions in the Center resulting from defects in or
inadequacy of the initial design or construction of the same, or (II) code violations, including
the payment of fines or citations in connection therewith; (d) The depreciation or amortization of
the Center or any part thereof or any equipment or other property used in connection therewith; (e)
the initial cost of the installation of the parking areas or facilities or the amortization or
depreciation of such initial cost; (f) The cost of providing or performing improvements, work or
repairs to or within (I) any portion of the premises of any other tenants or occupants in the
Center, (II) any other building which is not part of the Common Areas or (III) any portion of the
Center the use of which is not available to Tenant; (g) Any reserves for future expenditures or
liabilities which would be incurred subsequent to the then current accounting year; (h) Any bad
debt loss, rent loss or reserves for bad debt or rent loss; (i) Legal fees, audit fees, leasing
commissions, advertising expenses and other costs incurred in connection with (I) the original
development or original leasing of the Center, (II) the future re-leasing of the Center, (III) any
advertising or promotion of the Center or any part thereof, and (IV) disputes with other tenants or
third parties; (j) Costs of repairing or restoring any portion of the Center damaged or destroyed
by any casualty or peril
whether insured, uninsured or uninsurable; (k) Costs in connection with the cleanup or removal
of hazardous materials; (l) The cost of compliance with the Americans with Disabilities Act of
1990, as amended, and all regulations promulgated pursuant thereto; (m) Net

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recoveries from
insurance policies taken out by Landlord to the extent that the proceeds reimburse Landlord for
expenses which have previously been included or which would otherwise be included in Maintenance
Costs; (n) Contributions to Maintenance Costs by tenants or occupants whose space is permitted by
provisions in the Lease to be excluded from the denominator of the Tenant’s Proportionate Share;
(o) Costs associated with repairs or improvements the need for which arose prior to the date of
this Lease; (p) Any otherwise permissible fees or costs to the extent in excess of prevailing and
competitive rates; (q) Costs of a capital nature, including all capital improvements, alterations,
repairs and/or replacements (for purposes of this Lease, “costs of a capital nature” shall mean the
cost of any item or service the useful life of which exceeds 36 months); (r) Costs relating to the
negligence of Landlord or its contractors, agents or employees or the payment of any claims or
damages relating to the same; (s) Any insurance costs.

     (c) Landlord shall maintain accurate and detailed records of all Maintenance Costs for the
common areas in accordance with generally accepted accounting principles. For purposes of this
Lease, “Tenant’s Proportionate Share” shall be the product of the applicable cost or expense
multiplied by a fraction, the numerator of which shall be the gross leasable area (expressed in
square feet) of the Premises and the denominator of which shall be the gross leasable area
(expressed in square feet) of all leasable space in the Center. Tenant’s Proportionate Share of
that portion of the Center owned by Landlord is estimated to be fifteen percent (15%), during the
first Lease Year.

     (d) The actual amount of Tenant’s Proportionate Share of all Maintenance Costs shall be
computed by Landlord within one hundred eighty (180) days after the end of each accounting year
(which Landlord may change from time to time). At this time Landlord shall furnish to Tenant a
statement showing in reasonable detail the actual Maintenance Costs incurred during such accounting
year and Tenant’s Proportionate Share thereof (prorated for any partial Lease year, with
appropriate adjustments to reflect any change in the floor area of the premises or the gross
leasable area of a building occurring during such accounting year). Any excess payments from
Tenant shall be applied to the next installments of the Maintenance Costs hereunder, or refunded by
Landlord. Any underpayments by Tenant shall be paid to Landlord within thirty (30) days after
receipt of such reconciliation statement. Tenant’s estimated monthly Maintenance Cost hereunder
may be adjusted by written notice from Landlord. Notwithstanding anything contained in this
Section 15 to the contrary, Landlord and Tenant agree that the actual amount of Tenant’s
Proportionate Share of Maintenance Costs, excluding costs for snow and ice removal, shall not
increase by more than five percent (5%) in any lease year over the previous Lease Year, and that
Tenant’s Proportionate Share of Maintenance Costs for the first lease year, excluding costs for
snow and ice removal, shall not exceed One and 75/100 Dollars ($1.75) per square foot.

     (e) If Tenant, for any reason in the exercise of good business judgment, questions or disputes
any statement of Maintenance Costs prepared by Landlord, then Tenant, at its own expense, may
employ such accountants as Tenant may select to review Landlord’s books and records solely with
respect to Maintenance Costs during the prior two Lease years and to determine the amount of
Maintenance Costs for the period or periods covered by such statements. If the report of the
accountants employed by Tenant shall show any overcharge paid by Tenant, then Tenant shall receive
a credit from Landlord for such difference. Any underpayment shall be paid by Tenant. Tenant
agrees that no contingency fee auditors shall be employed by Tenant for the purpose of conducting
any such audit. In the event that Landlord questions or disputes the correctness of such report,
the accountants employed by Tenant and the accountants employed by Landlord shall endeavor to
reconcile the question(s) or dispute(s) within thirty (30) days after the notice from Tenant
questioning or disputing the report of Landlord’s accountants. In the event that it is finally
determined by the parties that Landlord has overstated Maintenance Costs for any Lease year by
three percent (3%) or more, Landlord shall pay the reasonable cost of the audit. Furthermore, if
Landlord’s Maintenance Costs cannot be verified due to the insufficiency or inadequacy of
Landlord’s records, then Landlord shall pay the cost of the audit.

SECTION 16. EMINENT DOMAIN

     (a) In the event the entire premises or any part thereof shall be taken or condemned either
permanently or temporarily for any public or quasi-public use or purpose by any

15

 

competent authority
in appropriation proceedings or by any right of eminent domain, the entire compensation or award
therefore, including leasehold, reversion and fee, shall belong to the Landlord and Tenant hereby
assigns to Landlord all of Tenant’s right, title and interest in and to such award.

     (b) In the event that only a portion of the Premises, not exceeding twenty percent (20%) of
same, shall be so taken or condemned, and the portion of the Premises not taken can be repaired
within ninety (90) days from the date of which possession is taken for the public use so as to be
commercially fit for the operation of Tenant’s business, the Landlord at its own expense shall so
repair the portion of the Premises not taken and there shall be an equitable abatement of rent for
the remainder of the term and/or extended terms. The entire award paid on account thereof shall be
paid to the Landlord. If the portion of the Premises not taken cannot be repaired within ninety
(90) days from the date of which possession is taken so as to be commercially fit for the operation
of Tenant’s business, then this Lease shall terminate and become null and void from the time
possession of the portion taken is required for public use, and from that date on the parties
hereto shall be released from all further obligations hereunder except as herein stated and Tenant
shall have no claim for any compensation on account of its leasehold interest. No other taking,
appropriation or condemnation shall cause this Lease to be terminated. Any such appropriation or
condemnation proceedings shall not operate as or be deemed an eviction of Tenant or a breach of
Landlord’s covenant of quiet enjoyment and Tenant shall have no claim for any compensation on
account of its leasehold interest.

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

SECTION 17. TENANT’S TAXES

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

SECTION 18. RISK OF GOODS

     All personal property, goods, machinery, and merchandise in said Premises shall be at Tenant’s
risk if damaged by water, fire, explosion, wind or accident of any kind, and Landlord shall have no
responsibility therefore or liability for any of the foregoing and Tenant hereby releases Landlord
from such liability.

SECTION 19. USE AND OCCUPANCY

     (a) Tenant agrees to initially open and operate a DSW for the retail sales of shoes and other
footwear in the Premises, fully staffed and stocked and equivalent to other DSW stores operated by
Tenant in the State of Virginia. The Premises during the term of this Lease shall be occupied for
the operating and conducting therein of a retail shoe store or any other lawful retail purpose.
Any use other than a retail shoe store shall be consistent with the then existing character of the
Center, and shall not violate those exclusives and prohibited uses set forth on Exhibit “E”
attached hereto and made a part hereof, which are the exclusives and prohibited uses in effect for
the Center as of the date hereof, for so long as and to the extent said exclusives and prohibited
uses are still in full force and effect, as well as exclusives and prohibited uses hereafter
granted for tenants leasing more than 15,000 square feet of space elsewhere within the Center, for
so long as and to the extent said exclusives are still in full force and effect.

     (b) For so long as Tenant is continuously and regularly operating its business in the
Premises, Landlord will not hereafter lease any space within the Center or permit any space
within the Center to be used by any person, persons, partnership or entity who devotes ten
percent (10%) or more of its selling area to the sale of footwear (the “Exclusive Use”). The
foregoing limitation shall not apply to typical shoe departments found in department stores, junior
department stores, general merchandise and discount stores, and clothing retailers, such as
Filene’s Basement, Marshalls, TJ Maxx and similar type stores so long as such tenants are

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operating
their prototypical shoe department. Any portion of the Center which is sold by Landlord during the
term shall contain a deed restriction incorporating the foregoing Exclusive Use.

     In the event an owner of an existing leasehold interest at the Center who has the right as of
the date hereof to engage in the Exclusive Use (an “Excluded Leasehold”), and such owner desires to
assign or sublet its leasehold interest in the Center, or any part thereof, and in connection
therewith Landlord’s consent is required or requested, whether with respect to such assignment or
subletting or any modification of such Excluded Leasehold in connection therewith, then Landlord
agrees that it shall condition its consent thereto to such owner of the Excluded Leasehold agreeing
to thereafter being subject to the Exclusive Use. In the event any such third party contests
Landlord’s right to condition its consent to such Excluded Leasehold thereafter being subject to
the Exclusive Use, Landlord agrees to use commercially reasonable efforts to satisfy the provisions
of this paragraph. In the event Landlord fails to exercise commercially reasonable efforts to
cause such Excluded Leasehold to be subject to the Exclusive Use, Tenant shall be entitled to a
reduction in minimum rent in accordance with the provisions of the immediately following paragraph.

     Landlord acknowledges that in the event of a breach or an attempted or prospective breach of
this Section 19(b), Tenant’s remedies at law would be inadequate. Therefore, in any such event, if
such breach is not cured within thirty (30) days after written notice from Tenant to Landlord,
Tenant shall be entitled, at its option and without limitation of any other remedy permitted by law
or equity or by this Lease, (i) to elect to pay in lieu of Base Rent and percentage rent due under
this Lease two percent (2%) of Tenant’s gross sales calculated according to Tenant’s standard
procedures in accordance with generally accepted accounting principles, (ii) to cancel this Lease
on thirty (30) days written notice to Landlord, and/or (iii) to full and adequate relief by
temporary or permanent injunction. Notwithstanding the foregoing, the remedy of lease cancellation
shall not be applicable if the violation of this Section 19(b) is due to the breach of another
tenant’s lease and Landlord is, in Tenant’s good faith judgment, diligently pursuing appropriate
legal proceedings to halt the violation and such violation is so halted within sixty (60) days of
Landlord’s receipt of Tenant’s notice.

     (c) Tenant shall at all times conduct its operations on the Premises in a lawful manner and
shall, at Tenant’s expense, comply with all laws, rules, orders, ordinances, directions,
regulations, and requirements of all governmental authorities, now in force or which may hereafter
be in force, which shall impose any duty upon Landlord or Tenant with respect to the business of
Tenant and the use, occupancy or alteration of the Premises. Tenant shall comply with all
requirements of the Americans with Disabilities Act, and shall be solely responsible for all
alterations within the Premises in connection therewith. Tenant covenants and agrees that the
Premises shall not be abandoned or left vacant and that only minor portions of the Premises shall
be used for office or storage space in connection with Tenant’s business conducted in the Premises.

     Without being in default of this Lease, Tenant shall have the right to cease operating (go
dark) at any time and for whatever reason after the first (1st) lease year.
Notwithstanding the foregoing, Tenant’s right to vacate (go dark), shall not release or excuse the
Tenant from any obligations or liabilities, including the payment of minimum rent and additional
rent and other charges, under this Lease without the express written consent of Landlord. In the
event Tenant fails to (i) open and operate within ninety (90) days after delivery of the Premises
or (ii) operate for one hundred twenty (120) or more consecutive days, Landlord shall have the
right, effective upon thirty (30) days prior written notice to Tenant, to terminate the Lease as
Landlord’s sole remedy, provided that if Tenant recommences operating fully stocked in
substantially all of the premises within such thirty (30) days, Landlord’s termination shall be
null and void. In the event Tenant fails to open and operate as provided above or shall cease
operating as provided above, Landlord’s sole remedy on account thereof shall be limited to the
right to elect to recapture the premises and terminate the Lease, whereupon there shall be no
further liability of the parties
hereunder. Such termination shall be effective upon written notice to Tenant any time prior
to Tenant reopening for business in the Premises. Provided, however, in the event Landlord has not
so elected to recapture, Tenant shall have right to notify Landlord of Tenant’s intention to reopen
for business in the Premises within sixty (60) days, followed by Tenant’s actually reopening for
business fully stocked in substantially all of the Premises within such sixty (60) day period,
which notice and actual reopening shall toll Landlord’s right to recapture.

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     (d) Landlord and Tenant agree that no space in the Center, including the Premises, shall be
used as a bowling alley, deep discount retailer, theater showing either film, television or the
like or live entertainment, health club, bar, games/amusement room, indoor playground, adult
bookstore, flea market, bingo parlor, bar, tavern, restaurant, cocktail lounge, adult book or adult
video store (defined for the purposes hereof as a store devoting ten percent (10%) or more of its
floor space to offering books and/or video materials for sale or for rent which are directed to or
restricted to adult customers due to sexually explicit subject matter or for any other reason
making it inappropriate for general use), adult theater or “strip-tease” establishment, automotive
maintenance or automotive repair facility, warehouse, car wash, pawn shop, check cashing service,
establishment selling second hand goods, flea market, entertainment or recreational facility (as
defined below), training or educational facility (as defined below); the renting, leasing, selling
or displaying of any boat, motor vehicle or trailer; industrial or manufacturing purposes; a
carnival, circus or amusement park; a gas station, facility for the sale of paraphernalia for use
with illicit drugs, funeral home, blood bank or mortuary, gambling establishment, banquet hall,
auditorium or other place of public assembly, second-hand or surplus store, gun range; the sale of
fireworks; a veterinary hospital or animal raising facility; the storage of goods not intended to
be sold from the Center; a video rental store, karate center, central laundry or dry cleaning
plant, supermarket or any facility which is illegal or dangerous, constitutes a nuisance, emits
offensive odors, fumes, dust or vapors or loud noise or sounds or is inconsistent with community
oriented shopping centers. For the purposes of this Section 19(d), the phrase “entertainment or
recreational facility” shall include, without limitation, a movie or live theater or cinema,
bowling alley, skating rink, gym, health spa or studio, dance hall or night club, billiard or pool
hall, massage parlor, health club, game parlor or video arcade (which shall be defined as any store
containing more than five (5) electronic games) or any other facility operated solely for
entertainment purposes (such as a “laser tag” or “virtual reality” theme operation). For the
purposes of this Section 19(d), the phrase “training or educational facility” shall include,
without limitation, a beauty school, nail salon, barber college, reading room, place of instruction
or any other operation catering primarily to students or trainees as opposed to customers.
Notwithstanding the foregoing, Landlord may lease any premises in the Center for use as a
restaurant or supermarket provided that no part of the Center within two hundred feet (200’) of the
Premises shall be used for such uses. The total floor area of all restaurants and medical, dental,
professional and business offices located within the Center shall not exceed ten percent (10%) of
the gross leasable area of the Center. Any portion of the Center which is sold by Landlord during
the term shall contain a deed restriction incorporating the foregoing restrictions.

     Landlord acknowledges that in the event of a breach or an attempted or prospective breach of
this Section 19(d), Tenant’s remedies at law would be inadequate. Therefore, in any such event, if
such breach is not cured within sixty (60) days after written notice from Tenant to Landlord,
Tenant shall be entitled, at its option and without limitation of any other remedy permitted by law
or equity or by this Lease, (i) to elect to pay in lieu of Base Rent and percentage rent due under
this Lease two percent (2%) of Tenant’s gross sales calculated according to Tenant’s standard
procedures in accordance with generally accepted accounting principles, and/or (ii) to full and
adequate relief by temporary or permanent injunction. Notwithstanding the foregoing, the remedy of
lease cancellation shall not be applicable if the violation of this Section 19(d) is due to the
breach of another tenant’s lease and Landlord is, in Tenant’s good faith judgment, diligently
pursuing appropriate legal proceedings to halt the violation and such violation is so halted within
one hundred twenty (120) days of Landlord’s receipt of Tenant’s notice.

     (e) Landlord and Tenant agree that (a) no auction, fire or going-out-of-business sales shall
be conducted in the Center except a going-out-of-business sale conducted during the last thirty
(30) days of an existing retail operation, (b) no exterior identification signs attached to any
building in the Center shall be (i) flashing, moving or audible signs or (ii) signs employing
exposed neon tubes, exposed ballast boxes or exposed transformers, and (c) no sidewalk sales
shall be allowed in the Center.

SECTION 20. NUISANCES

     Tenant shall not perform any acts or carry on any practice which may injure the Premises or be
a nuisance or menace to other tenants in the Center.

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SECTION 21. WASTE AND REFUSE REMOVAL

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

SECTION 22. DAMAGE AND DESTRUCTION OF PREMISES

     (a) Landlord shall at all times during the term of this Lease carry property insurance on the
building containing the Premises, including the “Structural Portions” (defined in Section 24(a)
below) and common utility lines up to the point they serve individual tenant’s premises. Landlord
shall be under no obligation to maintain insurance on any improvements installed by or for the
benefit of Tenant’s use of the premises or otherwise owned by Tenant. Landlord may elect to
self-insure its obligations hereunder and/or use whatever deductibles as Landlord deems
appropriate, in its sole discretion.

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

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

     (d) If one-third (1/3) or more of the ground floor area of the Premises are damaged or
destroyed during the last two (2) years of the original or any extended term of this Lease,
Landlord shall have the right to terminate this Lease by written notice to Tenant within sixty (60)
days following such damage or destruction, unless Tenant shall, within thirty (30) days following
receipt of such notice, offer to extend the term of this Lease for an additional period of five (5)
years from the date such damage or destruction is repaired and restored. If Tenant makes said
offer to extend, Landlord and Tenant shall determine the terms and conditions of said extension
within thirty (30) days thereafter or Tenant’s offer shall not be deemed to prevent Landlord from
canceling this Lease. If such terms and conditions have been mutually agreed to by the parties,
then Landlord shall accept Tenant’s offer and shall repair and restore the Premises with reasonable
dispatch thereafter.

     (e) If Landlord is required or elects to repair and restore the Premises as herein provided,
Tenant shall repair or replace its stock in trade, trade fixtures, furniture, furnishings and
equipment and other improvements including floor coverings, and if Tenant has closed, Tenant shall
promptly reopen for business. Anything contained in this Section 22 to the contrary
notwithstanding, Landlord’s restoration and repair obligations under Section 22 shall in no event
include restoration or repair of Tenant’s Work or improvements.

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SECTION 23. LANDLORD REPAIRS

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

     (b) Notwithstanding the provisions of Section 23(a) above, Landlord shall not be obligated to
repair the following: (i) the exterior or interior of any doors, windows, plate glass, or showcases
surrounding the Premises or the store front or (ii) damage to Tenant’s improvements or personal
property caused by any casualty, burglary, break-in, vandalism, acts of terrorism, war or act of
G-d. Landlord shall, in any event, have ten (10) days after notice from Tenant stating the need
for repairs to complete same, or commence and proceed with due diligence to complete same.
Landlord shall be obligated to replace all HVAC components as and when necessary so long as Tenant
has fulfilled its obligations under Section 24(a)(ii) below. Except as specifically set forth
herein, Tenant expressly hereby waives the provisions of any law permitting repairs by a tenant at
Landlord’s expense.

     (c) The provisions of this Section 23 shall not apply in the case of damage or destruction by
fire or other casualty or a taking under the power of eminent domain in which events the
obligations of Landlord shall be controlled by Section 22 and Section 16 respectively.

     (d) Landlord shall assign to Tenant all warranties covering all matters required by the terms
hereof to be repaired and maintained by Landlord.

     (e) If Landlord fails to make any of the repairs required to be made under this Lease within
thirty (30) days after written notice from Tenant, Tenant, in addition to any other rights it may
have hereunder or at law or in equity, shall have the right to make said repairs on behalf of
Landlord and to bill Landlord for the reasonable cost thereof. Landlord shall have thirty (30)
days to reimburse Tenant. In the event of an emergency or if any such repairs are immediately
necessary for the proper use and enjoyment of the Premises, no prior thirty (30) days notice shall
be required, Tenant, after diligent effort to first notify Landlord, forthwith make said repairs on
behalf of Landlord and bill Landlord for the reasonable cost thereof. Tenant has not received
reimbursement for any repairs permitted to be made under this Section 23(e) within such thirty (30)
day period, Tenant shall have the right to deduct the cost of repairs from Rent otherwise due
Landlord.

SECTION 24. TENANT’S REPAIRS

     (a) Tenant shall keep and maintain, at Tenant’s expense, all and every other part of the
Premises in good order, condition and repair, including, by way of example but not limitation: (i)
all leasehold improvements; (ii) all HVAC unit(s), equipment and systems (including all components
thereof) serving the Premises; (iii) interior plumbing and sewage facilities; (iv) all interior
lighting; (v) electric signs; (vi) all interior walls; (vii) floor coverings; (viii) ceilings; (ix)
appliances and equipment; (x) all doors, exterior entrances, windows and window moldings; (xi)
plate glass; (xii) signs and showcases surrounding and within the Premises; (xiii) the store front;
(xiv) sprinkler systems including supervisory alarm service in accordance with National Fire
Protection Association standards and current local and state fire protection standards to ensure
property operation.

     (b) Sprinkler systems, if any, located in Tenant’s area shall be maintained in accordance with
National Fire Protection Association standards to ensure proper operation. Sprinkler control
valves (interior and exterior) located in Tenant’s area shall be monitored by supervisory alarm
service. In the event local or state codes do not require alarm systems, Tenant shall provide
alarm service on all sprinkler systems to detect water flow and tampering with exterior and
interior main control valves of the sprinkler system servicing Tenant’s premises.

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Moreover, it
shall be Tenant’s responsibility to contact Chuck Seall, VP Property Management at 614-449-6890, in
the event the sprinkler system in the Premises is ever shut off for any reason, and advise same of
any damage occasioned or caused by the actions of Tenant, its agents, invitees, or employees,
and/or as a result of Tenant’s repair obligations hereunder. In the event fifty percent (50%) or
more of the total number of sprinkler heads require replacement at any one time as part of ordinary
maintenance, but excluding repairs or replacements that arise from (x) repairs, installations
alterations, or improvements made by or for Tenant or anyone claiming under Tenant, or (y) the
fault or misuse of Tenant or anyone claiming under Tenant, such cost shall be fifty percent (50%)
borne by Landlord and fifty percent (50%) borne by Tenant. Tenant, at Tenant’s sole cost and
expense, shall replace all sprinkler heads due to repairs, installations, alterations, or
improvements made by or for Tenant or anyone claiming under Tenant, the fault or misuse of Tenant
or anyone claiming under Tenant, painting or environmental exposure from Tenant’s operations. All
other costs of maintaining the sprinkler system in the Premises shall be paid by Tenant.

     (c) If Landlord deems any repair which Tenant is required to make hereunder to be necessary,
Landlord may demand that Tenant make such repair immediately. If Tenant refuses or neglects to
make such repair and to complete the same with reasonable dispatch, Landlord may make such repair
and Tenant shall, on demand, immediately pay to Landlord the cost of said repair, together with
annual interest at the Interest Rate. Landlord shall not be liable to Tenant for any loss or
damage that may accrue to Tenant’s stock or business by reason of such work or its results.

     (d) Neither Tenant nor any of its contractors are permitted access to or permitted to perform
alterations of any kind to the roof of the Premises.

     (e) Tenant shall pay promptly when due the entire cost of work in the Premises undertaken by
Tenant under this Lease (including, but not limited to, Tenant’s Work and/or alterations permitted
under Section 7 of this Lease) so that the Premises and the Center shall at all times be free of
liens for labor and materials arising from such work; to procure all necessary permits before
undertaking any such work; to do all of such work in a good and workmanlike manner, employing
materials of good quality; to perform such work only with contractors previously reasonably
approved of in writing by Landlord; to comply with all governmental requirements; and save Landlord
and its agents, officers, employees, contractors and invitees harmless and indemnified from all
liability, injury, loss, cost, damage and/or expense (including reasonable attorneys’ fees and
expenses) in respect of any injury to, or death of, any person, and/or damage to, or loss or
destruction of, any property occasioned by or growing out of any such work.

SECTION 25. COVENANT OF TITLE AND PEACEFUL POSSESSION

     Subject to the provisions of Section 11 hereof, Landlord shall, on or before the date on which
Tenant is permitted to install its merchandise and fixtures in the Premises, have good and
marketable title to the Premises in fee simple and the right to make this Lease for the term
aforesaid. At such time, Landlord shall put Tenant into complete and exclusive possession of the
Premises, and if Tenant shall pay the rental and perform all the covenants and provisions of this
Lease to be performed by the Tenant, Tenant shall, during the term hereby demised, freely,
peaceably, and quietly enjoy and occupy the full possession of the Premises and the common
facilities of the Center, subject, however, to the terms and conditions of this Lease.

SECTION 26. TENANT’S AND LANDLORD’S INSURANCE; INDEMNITY

     (a) Tenant’s Commercial General Liability Insurance. Commencing as of the
Commencement Date, and thereafter throughout the term of this Lease, Tenant shall, at Tenant’s sole
cost and expense, provide and maintain or cause to be provided and maintained a
commercial general liability policy (including coverage for product and contractual
liability), naming Tenant as an insured (and naming Landlord as an additional insured, said
additional insured’s coverage under Tenant’s commercial general liability policy to be primary),
protecting Tenant, the business operated by Tenant, and any additional insureds (including
Landlord) against claims for bodily injury (including death) and property damage occurring within
the Premises. Such insurance shall afford protection to the limits of not less than One Million
Dollars ($1,000,000.00) per occurrence and Five Hundred Thousand Dollars ($500,000.00) with

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respect
to property damage for fire legal liability. Tenant may use commercially reasonable deductibles
Tenant customarily carries in the conduct of its business; however, Tenant shall be responsible for
all such deductibles or self-insured retention level. All liability policies shall be written on
an occurrence form.

     (b) Worker’s Compensation. Commencing as of the Commencement Date, and thereafter
throughout the term of this Lease, Tenant shall, at Tenant’s sole cost and expense, provide and
maintain or cause to be provided and maintained workers’ compensation insurance (meeting the
requirements of the state workers’ compensation laws) and employer liability insurance covering all
of Tenant’s employees at the Premises. Tenant shall also use good faith efforts to ensure all
contractors, sub-contractors, vendors, leased employees, and temporary employees are properly
insured for workers’ compensation.

     (c) Tenant’s Umbrella. Commencing as of the Commencement Date, and thereafter
throughout the term of this Lease, Tenant shall, at Tenant’s sole cost and expense, provide and
maintain or cause to be provided and maintained an umbrella liability insurance policy with a Ten
Million Dollar ($10,000,000.00) policy limits, which umbrella policy (or policies) shall list the
commercial general liability, product liability, contractual liability and employer liability
policies required hereunder, and any other liability policy or policies carried by, or for the
benefit of, Tenant as underlying policies. Said umbrella liability insurance policy shall also name
Landlord as an additional insured (said additional insured’s coverage under Tenant’s umbrella
liability policy to be primary). All liability policies shall be written on an occurrence form.

     (d) Tenant’s Property Insurance. Commencing as of the Commencement Date, and
thereafter throughout the term of this Lease, Tenant shall, at Tenant’s sole cost and expense,
provide and maintain or cause to be provided and maintained a property insurance policy insuring
Tenant’s contents, fixtures, equipment and personal property located within the Premises and/or
owned by Tenant for all the hazards and perils normally covered by the Causes of Loss-Special Form.
Said property insurance policy shall include endorsements for coverage against: (i) earthquake and
flood (including, but not limited to, mud slide, flood hazard or fault area(s), as designated on
any map prepared or issued for such purpose by any governmental authority); and (ii) increased
costs of construction and demolition due to law and ordinance. The foregoing property coverage
shall be provided in amounts sufficient to provide one hundred percent (100%) of the full
replacement cost of Tenant’s contents, fixtures, equipment and personal property located within the
Premises and/or owned by Tenant. If for any reason the Causes of Loss-Special Form is not
customarily used in the insurance industry, then the property insurance policy then in effect shall
at least provide coverage for the following perils: fire, lightning, windstorm and hail, explosion,
smoke, aircraft and vehicles, riot and civil commotion, vandalism and malicious mischief, sprinkler
leakage, sinkhole and collapse, volcanic action, earthquake or earth movement, and flood, and
increased costs of construction and demolition due to law, ordinance and inflation. The property
insurance policy required to be maintained by Tenant under this Section 26(d) shall: (y) not
provide coverage for Tenant’s Improvements (defined in Section 49 below), which Tenant’s
Improvements shall be insured by Landlord as required under Section 26(a);

     (e) Landlord’s Property Insurance. Commencing as of the Commencement Date, and
thereafter throughout the term of this Lease, Landlord shall, at Landlord’s sole cost and expense,
provide and maintain or cause to be provided and maintained a property insurance policy insuring
all buildings (and building additions) and other improvements in the Center, Tenant’s store
building, and Tenant Improvements (but excluding those items insured by Tenant as required under
Section 26(d)) for all the hazards and perils normally covered by the Causes of Loss-Special Form.
Said property insurance policy shall include endorsements for coverage against: (i) earthquake and
flood (including, but not limited to, mud slide, flood hazard or fault area(s), as designated on
any map prepared or issued for such purpose by any governmental
authority); and (ii) increased costs of construction and demolition due to law and ordinance.
The foregoing property coverage shall be provided in amounts sufficient to provide one hundred
percent (100%) of the full replacement cost of all buildings (and building additions) and other
improvements in the Center, Tenant’s store building, and Tenant Improvements (but excluding those
items insured by Tenant as required under Section 26(d)). If for any reason the Causes of
Loss-Special Form is not customarily used in the insurance industry, then the property insurance
policy then in effect shall at least provide coverage for the following perils: fire, lightning,
windstorm and hail, explosion, smoke, aircraft and vehicles, riot and civil commotion, vandalism

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and malicious mischief, sprinkler leakage, sinkhole and collapse, volcanic action, earthquake or
earth movement, and flood, and increased costs of construction and demolition due to law, ordinance
and inflation. Neither Tenant nor any of its affiliates or subtenants shall be liable to Landlord
for any loss or damage (including loss of income), regardless of cause, resulting from fire, flood,
act of G-d or other casualty.

     (f) Landlord’s Commercial General Liability Insurance. Commencing as of the
Commencement Date, and thereafter throughout the term of this Lease, Landlord shall, at Landlord’s
sole cost and expense, provide and maintain or cause to be provided and maintained a commercial
general liability policy (including coverage for contractual liability), naming Landlord as an
insured (and naming Tenant as an additional insured, said additional insured’s coverage under
Landlord’s commercial general liability policy to be primary), protecting Landlord, the business
operated by Landlord, and any additional insureds (including Tenant) against claims for bodily
injury (including death) and property damage occurring upon, in or about the Center (other than the
Premises and those areas insured by other tenants at the Center), including Common Areas. Such
insurance shall afford protection to the limits of not less than One Million Dollars
($1,000,000.00) per occurrence and Five Hundred Thousand Dollars ($500,000.00) with respect to
property damage for fire legal liability. All liability policies shall be written on an occurrence
form. Landlord may use commercially reasonable deductibles Landlord customarily carries in the
conduct of its business; however, Landlord shall be responsible for all such deductibles or
self-insured retention levels.

     (g) Landlord’s Umbrella. Commencing as of the Commencement Date, and thereafter
throughout the term of this Lease, Landlord shall, at Landlord’s sole cost and expense, provide and
maintain or cause to be provided and maintained an umbrella liability insurance policy with a Ten
Million Dollar ($10,000,000.00) minimum annual aggregate, which umbrella policy (or policies) shall
list Landlord’s commercial general liability and contractual liability policies required hereunder,
and any other liability policy or policies carried by, or for the benefit of, Landlord as
underlying policies. Said umbrella liability policy shall also name Tenant as an additional
insured (said additional insured’s coverage under Landlord’s umbrella liability policy to be
primary). All liability policies shall be written on an occurrence form.

     (h) All insurance provided for in this Section 26 shall be effected under standard form
policies issued by insurers of recognized responsibility authorized to do business in the state in
which the Premises are located; provided, however, that Landlord or Tenant may self-insure any of
the amounts herein stated pursuant to a bona fide self-insurance retention program so long as the
amounts so self-insured by such party do not exceed ten percent (10%) of such party’s net worth as
computed in accordance with generally accepted accounting principles consistently applied by such
party.

     (i) Prior to the Commencement Date, and thereafter during the term hereof within fifteen (15)
days after request therefor by either party, and within fifteen (15) days after each policy renewal
date, Tenant and Landlord shall furnish the other party with certificates of insurance evidencing
all insurance coverage required herein. All such certificates shall: (i) evidence the continuous
existence during the term hereof of the insurance required hereunder; (ii) include attachment of an
additional insured endorsement; (iii) name any and all non-standard exclusions or limitations; and
(iv) contain a provision that the insurance carrier shall not cancel or modify the insurance
coverage without giving at least ten (10) days prior written notice thereof to both Landlord and
Tenant at their last known address as provided for herein. Current certificates of insurance shall
be delivered to both Landlord and Tenant in time sufficient to assure that both Landlord and Tenant
shall always possess certificates of insurance evidencing current insurance coverage. All insurance
carriers shall be licensed to do business in the state in which the Premises is located and shall
have a Best’s Key Rating Guide rating of A- VIII.

     (j) Landlord and Tenant shall neither do nor suffer anything to be done whereby any of the
insurance required by the provisions of this Section 26 shall or may be invalidated in whole or in
part. Landlord shall not permit or suffer to be done in any part of the Center any activities
which shall increase the rate of any insurance to be maintained by Tenant over that rate normal and
customary for Tenant’s type of business or which shall increase the rate on any insurance
maintained by Landlord for which Tenant is required to reimburse Landlord pursuant to Section 28
hereof. Should such occur, Landlord shall pay, without reimbursement from Tenant, all costs and
expenses of such insurance over the base rate. Tenant shall not permit or

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suffer to be done in any
part of the Premises any activities which shall increase the rate of any insurance to be maintained
by Landlord over the base rate. Should such occur, Tenant shall pay all costs and expenses of such
insurance over the base rate.

     (k) Notwithstanding anything to the contrary hereinabove contained, Tenant or Landlord, may,
at its option, include any of the insurance coverage hereinabove set forth in general or blanket
policies of insurance. All insurance required hereunder shall be consistent with sound insurance
practices.

     (l) Tenant and Landlord shall cooperate with each other in connection with the collection of
any insurance monies that may be due in the event of loss and Landlord shall execute and deliver to
Tenant such proofs of loss and other instruments which may be required for the purpose of obtaining
the recovery of any such insurance monies.

     (m) Tenant Indemnity. Subject to Section 34 of this Lease, Tenant shall indemnify
Landlord, Landlord’s agents, employees, officers or directors, against all damages, claims and
liabilities arising from any alleged products liability or from any accident or injury whatsoever
caused to any person, firm or corporation during the demised term in the Premises, unless such
claim arises from a breach or default in the performance by Landlord of any covenant or agreement
on its part to be performed under this Lease or, to the extent not required to be insured
hereunder, the negligence of Landlord. The indemnification herein provided shall include all
reasonable costs, counsel fees, expenses and liabilities incurred in connection with any such claim
or any action or proceeding brought thereon.

     (n) Landlord Indemnity. Subject to Section 34 of this Lease, Landlord shall indemnify
Tenant, Tenant’s officers, directors, employees and agents against all damages, claims and
liabilities arising from any accident or injury whatsoever caused to any person, firm or
corporation during the demised term in the Center (excluding therefrom the Premises), unless such
claim arises from a breach or default in the performance by Tenant of any covenant or agreement on
Tenant’s part to perform under this Lease or, to the extent not required to be insured hereunder,
the negligence of Tenant. The indemnification herein provided shall include all reasonable costs,
counsel fees, expenses and liabilities incurred in connection with any such claim or any action or
proceeding brought thereon.

SECTION 27. REAL ESTATE TAXES

     (a) Tenant shall pay Tenant’s Proportionate Share (as defined in Section 15(c) above) of any
“Real Estate Taxes” (defined in Section 27(b) below) imposed upon the Center that become due and
payable during each lease year included within the period commencing with the Commencement Date and
ending with the expiration of the term of this Lease. Tenant shall initially pay to landlord as
additional rental, simultaneously with the payment of Base Rent called for under Section 4(a), the
estimated monthly amount of Tenant’s Proportionate Share of Real Estate Taxes as set forth in
Section 4(c) of One Dollar ($1.00) per square foot based on the Rentable Square Feet in effect
under Section 5(a) above. Within one hundred twenty (120) days after the end of each accounting
year (which Landlord may change from time to time), Landlord shall provide Tenant with an annual
reconciliation of Real Estate Taxes and a statement of the actual amount of Tenant’s Proportionate
Share thereof. Any excess payments from Tenant shall be applied to the next installments of Real
Estate Taxes hereunder, or refunded by Landlord. Any underpayments by Tenant shall be paid to
Landlord within thirty (30) days after receipt of such reconciliation statement. Tenant’s
estimated monthly installment of Real Estate Taxes payable hereunder may be adjusted by written
notice from Landlord.

     (b) For the purpose of this Lease, the term “Real Estate Taxes” shall include any special and
general assessments, water and sewer rents and other governmental impositions imposed upon or
against the Center of every kind and nature whatsoever, extraordinary as well as ordinary, foreseen
and unforeseen and each and every installment thereof, which shall or may during the lease term be
levied, assessed or imposed upon or against such Center and of all expenses, including reasonable
attorneys’ fees, administrative hearing and court costs incurred in contesting or negotiating the
amount, assessment or rate of any such real estate taxes, minus any refund received by Landlord.

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     (c) Notwithstanding any provision of this Lease to the contrary, Tenant shall not be obligated
to pay for any assessment for special improvements heretofore installed or in the process of
installation in connection with the initial development of the Center, and Landlord hereby agrees
to pay for the same.

     (d) The real estate taxes for any lease year shall be the real estate taxes that become due
and payable during such lease year. If any lease year shall be greater than or less than twelve
(12) months, or if the real estate tax year shall be changed, an appropriate adjustment shall be
made. If there shall be more than one taxing authority, the real estate taxes for any period shall
be the sum of the real estate taxes for said period attributable to each taxing authority. If,
upon the assessment day for real estate taxes for any tax year fully or partly included within the
term of this Lease, a portion of such assessment shall be attributable to buildings in the process
of construction, a fair and reasonable adjustment shall be made to carry out the intent of this
Section 27.

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

     (f) Should the State of Virginia or any political subdivision thereof or any governmental
authority having jurisdiction thereof, impose a tax and/or assessment (other than an income or
franchise tax) upon or against the rentals payable hereunder, in lieu of or in addition to
assessments levied or assessed against the Premises, or Center, then such tax and/or assessment
shall be deemed to constitute a tax on real estate for the purpose of this Section 27.

SECTION 28. TENANT’S INSURANCE CONTRIBUTION

     Tenant shall pay as additional rent, Tenant’s Proportionate Share (as defined in Section 15(c)
above) of the premiums for the insurance maintained by Landlord on all buildings and improvements,
as well as liability insurance, for the Center, including the Common Areas, as set forth above in
Section 28, for each Lease Year during the term of this Lease. The premiums for the first and last
Lease Years shall be prorated. Tenant shall pay Tenant’s Proportionate Share of such premiums
annually upon demand for such payment by Landlord. Tenant’s Proportionate Share thereof shall be
paid by Tenant within thirty (30) days after Landlord’s demand therefore. Tenant shall initially
pay to Landlord as additional rental, simultaneously with the payment of Base Rent called for under
Section 4(a), the estimated monthly amount of Tenant’s Proportionate Share of such insurance
premiums as set forth in Section 4(c), of Twenty-Five Cents ($0.25) per square foot based on the
Rentable Square Feet in effect under Section 5(a) above. Within one hundred twenty (120) days
after the end of each accounting year (which Landlord may change from time to time), Landlord shall
provide Tenant with a reconciliation of the premiums for the insurance maintained by Landlord
hereunder and a statement of the actual amount of Tenant’s Proportionate Share thereof. Any excess
payments from Tenant shall be applied to the next installments of insurance premiums payable by
Tenant hereunder, or refunded by Landlord. Any underpayments by Tenant shall be paid to Landlord
within thirty (30) days after receipt of such reconciliation statement. Tenant’s monthly
installment of insurance premiums payable hereunder may be adjusted by written notice from
Landlord.

SECTION 29. FIXTURES

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

SECTION 30. SURRENDER

     The Tenant covenants and agrees to deliver up and surrender to the Landlord the physical
possession of the Premises upon the expiration of this Lease or its termination as herein provided
in as good condition and repair as the same shall be at the commencement of the initial term, loss

25

 

by fire and/or ordinary wear and tear excepted, and to deliver all of the keys to Landlord or
Landlord’s agents.

SECTION 31. HOLDING OVER

     There shall be no privilege of renewal hereunder (except as specifically set forth in this
Lease) and any holding over after the expiration by the Tenant shall be from day to day on the same
terms and conditions (with the exception of rental which shall be prorated on a daily basis at one
hundred twenty-five percent (125%) the daily rental rate of the most recent expired term) at
Landlord’s option; and no acceptance of rent by or act or statement whatsoever on the part of the
Landlord or his duly authorized agent in the absence of a written contract signed by Landlord shall
be construed as an extension of the term or as a consent for any further occupancy.

SECTION 32. NOTICE

     Any consent, waiver, notice, demand, request or response thereto or other instrument required
or permitted to be given under this Lease shall be given by overnight courier or by certified
United States mail, return receipt requested, postage prepaid: (a) if to Landlord, at the address
set forth in Section 1; and (b) if to Tenant, at the address set forth in Section 1 with duplicate
copies to (i) Sr. Vice President — Real Estate, 4150 East Fifth Avenue, Columbus, Ohio 43219 and
(ii) General Counsel, 4150 East Fifth Avenue, Columbus, Ohio 43219. Either party may change its
address for notices by notice in the manner set forth above, given at least thirty (30) days in
advance. All such consents, waivers, notices, demands, requests or other instruments shall be
deemed given upon receipt thereof or upon the refusal of the addressee to receive the same.

SECTION 33. DEFAULT

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

1. Tenant fails to pay any monthly installment of rent within ten (10) days after
the same shall be due and payable, except for the first two (2) times in any
consecutive twelve (12) month period, in which event Tenant shall have five (5) days
after receipt of written notice of such failure to pay before such failure shall
constitute a default;

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

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

4. A petition in bankruptcy, insolvency, or for reorganization or arrangement is
filed by or against Tenant or any guarantor of Tenant’s obligations under this Lease
pursuant to any Federal or state statute, and, with respect to any such petition
filed against it, Tenant or such guarantor fails to secure a stay or discharge
thereof within sixty (60) days after the filing of the same.

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

1. Landlord may re-enter the Premises and cure any default of Tenant, in which event
Tenant shall reimburse Landlord for any reasonable out-of-pocket cost and expenses
which Landlord may incur to cure such default; and Landlord shall not be liable to
Tenant for any loss or damage which Tenant may sustain by reason of Landlord’s
action.

2. Landlord may terminate this Lease or Tenant’s right to possession under this
Lease as of the date of such default, without terminating Tenant’s obligation to pay
rent due hereunder, in which event (A): neither Tenant nor any person claiming under
or through Tenant shall thereafter be entitled to possession of the Premises, and
Tenant shall immediately thereafter surrender the Premises to Landlord; (B) Landlord
may re-enter the Premises and dispose Tenant or any other occupants of the Premises
by force, summary proceedings, ejectment or otherwise, and may remove their effects,
without prejudice to any other remedy which Landlord may have for possession or
arrearages in rent; and (C) notwithstanding a termination of this Lease, Landlord
shall use good faith efforts to re-let all or any part of the Premises for at least
the balance of the term of this Lease for commercially reasonable rent, whereupon
Tenant shall be obligated to pay to Landlord as liquidated damages the difference
between the rent provided for herein and that provided for in any lease covering a
subsequent re-letting of the Premises, such deficiency to be computed and paid
monthly at the times that Rent is payable hereunder, together with all of Landlord’s
reasonable costs and expenses for preparing the Premises for re-letting, including
all repairs which are Tenant’s obligations hereunder, reasonable broker’s and
attorney’s fees, and all loss or damage which Landlord may sustain by reason of such
termination, re-entry and re-letting, it being expressly understood and agreed that
the liabilities and remedies specified herein shall survive the termination of this
Lease. Notwithstanding a termination of this Lease by Landlord, Tenant shall remain
liable for payment of all rentals and other charges and costs imposed on Tenant
herein, in the amounts, at the times and upon the conditions as herein provided.
Landlord shall credit against such liability of the Tenant all amounts received by
Landlord from such re-letting after first reimbursing itself for all reasonable
costs incurred in curing Tenant’s defaults and re-entering, preparing and
refinishing the Premises for re-letting, and re-letting the Premises.

3. Upon termination of this Lease pursuant to Section 33(b)2, Landlord may recover
possession of the Premises under and by virtue of the provisions of the laws of the
State of Virginia, or by such other proceedings, including reentry and possession,
as may be applicable.

4. If the Tenant shall not remove all of Tenant’s property from said Premises as
provided in this Lease, Landlord, at its option, may remove any or all of said
property in any manner that Landlord shall choose and store same without liability
for loss thereof, and Tenant will pay the Landlord, on demand, any and all
reasonable expenses incurred in such removal and storage of said property for any
length of time during which the same shall be in possession of Landlord or in
storage, or Landlord may, upon thirty (30) days prior notice to Tenant, sell any or
all of said property in such manner and for such price as the Landlord may
reasonably deem best and apply the proceeds of such sale upon any amounts due under
this Lease from the Tenant to the Landlord, including the reasonable expenses of
removal and sale.

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

27

 

expiration of
said term) or in a single proceeding prior to either the time of reletting or the
expiration of the term of this Lease.

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

7. Tenant hereby expressly waives any and all rights of redemption granted by or
under any present or future laws, in the event of eviction or dispossession of
Tenant by Landlord under any provision of this Lease. No receipt of monies by
Landlord from or for the account of Tenant or from anyone in possession or occupancy
of the Premises after the termination of this Lease or after the giving of any
notice shall reinstate, continue or extend the term of this Lease or affect any
notice given to the Tenant prior to the receipt of such money, it being agreed that
after the service of notice or the commencement of a suit, or after final judgment
for possession of said Premises, the Landlord may receive and collect any rent or
other amounts due Landlord and such payment shall not waive or affect said notice,
said suit or said judgment.

     (c) Additional Remedies and Waivers: The rights and remedies of Landlord set forth
herein shall be in addition to any other right and remedy now or hereinafter provided by law and/or
equity and all such rights and remedies shall be cumulative and shall not be deemed inconsistent
with each other, and any two or more or all of said rights and remedies may be exercised at the
same time or at different times and from time to time without waiver thereof of any right or remedy
provided or reserved to Landlord. No action or inaction by Landlord shall constitute a waiver of a
default and no waiver of default shall be effective unless it is in writing, signed by the
Landlord.

     (d) Default by Landlord. Any failure by Landlord to observe or perform any provision,
covenant or condition of this Lease to be observed or performed by Landlord, if such failure
continues for thirty (30) days after written notice thereof from Tenant to Landlord, shall
constitute a default by Landlord under this Lease, provided, however, that if the nature of such
default is such that the same cannot reasonably be cured within a thirty (30) day period, Landlord
shall not be deemed to be in default if it shall commence such cure within such thirty (30) day
period and thereafter rectify and cure such default with due diligence.

     (e) Interest on Past Due Obligations: All monetary amounts required to be paid by
Tenant or Landlord hereunder which are not paid on or before the due date thereof shall, from and
after such due date, bear interest at the Interest Rate, and shall be due and payable by such party
without notice or demand.

     (f) Tenant’s Remedies. In the event of default by the Landlord with respect to the
Premises, Tenant shall have the option to cure said default. Landlord shall reimburse Tenant for
the reasonable costs incurred by Tenant in curing such default within thirty (30) days after
invoice thereof by Tenant, together with reasonable evidence supporting such invoiced amount.
Tenant shall also have any and all rights available under the laws of the state in which the
Premises are situated; provided, however, that any right of offset available to Tenant shall be
subject to the provisions of Section 35 below.

SECTION 34. WAIVER OF SUBROGATION

     Landlord and Tenant, and all parties claiming under each of them, mutually release and
discharge each other from all claims and liabilities arising from or caused by any casualty or
hazard covered or required hereunder to be covered in whole or in part by insurance coverage
required to be maintained by the terms of this Lease on the Premises or in connection with the

28

 

Center or activities conducted with the Premises, and waive any right of subrogation which might
otherwise exist in or accrue to any person on account thereof. All policies of insurance required
to be maintained by the parties hereunder shall contain waiver of subrogation provisions so long as
the same are available.

SECTION 35. LIABILITY OF LANDLORD; EXCULPATION

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

     (b) If the Tenant obtains a money judgment against Landlord, any of its officers, directors,
shareholders, partners, members or their successors or assigns under any provisions of or with
respect to this Lease or on account of any matter, condition or circumstance arising out of the
relationship of the parties under this Lease, Tenant’s occupancy of the building or Landlord’s
ownership of the Center, Tenant shall be entitled to have execution upon any such final,
unappealable judgment only upon Landlord’s fee simple or leasehold estate in the Center (whichever
is applicable) and not out of any other assets of Landlord, or any of its officers, directors,
shareholders, members or partners, or their successor or assigns; and Landlord shall be entitled to
have any such judgment so qualified as to constitute a lien only on said fee simple or leasehold
estate.

     Notwithstanding the above, Tenant shall have the right to offset any final, unappealable
judgment against twenty five percent (25%) of all minimum rent and all percentage rental (but no
other additional rent components) if not paid to Tenant by Landlord within thirty (30) days
thereafter.

     (c) It is expressly agreed that nothing in this Lease shall be construed as creating any
personal liability of any kind against the assets of any of the officers, directors, members,
partners or shareholders of Tenant, or their successors and assigns.

SECTION 36. RIGHTS CUMULATIVE

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

SECTION 37. MITIGATION OF DAMAGES

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

SECTION 38. SIGNS

     (a) Landlord shall, at its sole cost and expense, construct, erect and maintain at the
location shown on the Site Plan a pylon sign upon which Tenant’s advertising panel shall be
installed. Tenant’s prototypical advertising panel for such pylon sign, which is hereby approved
by Landlord, is as shown on Exhibit “F” attached hereto and made a part hereof.
Thereafter, throughout the term of this Lease, Tenant shall have continuous representation on (a)
such pylon

29

 

sign and any replacement pylon sign consistent with Exhibit “F” and (b) any new
pylon signs erected at the Center, and Tenant shall have no worse representation on any such new
pylon sign(s) than any other tenant of the Center leasing the same or less square feet of leasable
space as Tenant.

     (b) Tenant shall have the right to install its standard signs and awnings on the exterior of
the Leased Premises provided that the same are in compliance with local code. Landlord agrees to
provide an adequate building facia for Tenant’s signs. Tenant shall also have the right to place
signs or banners in the windows of the Premises provided the same have been professionally
prepared.

     (c) Tenant shall have the right to alter its exterior and pylon signs with Landlord’s consent,
which consent shall not be unreasonably withheld; provided, however, Tenant shall have no
obligation to obtain Landlord’s consent to any change in Tenant’s signage if such signage is
consistent with Tenant’s then prototypical signage.

SECTION 39. ENTIRE AGREEMENT

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

SECTION 40. TENANT’S PROPERTY

     All equipment, inventory, trade fixtures and other property owned by the Tenant and located in
the Premises shall remain the personal property of the Tenant and shall be exempt from the claims
of the Landlord or any mortgagee or lienholder of the Landlord without regard to the means by which
they are installed or attached specifically not including, however, the Tenant Improvements
(defined in Section 49(a) below) which throughout the term and upon the expiration of this Lease
shall be and remain the property of Landlord. The Landlord expressly waives any statutory or
common law landlord’s lien and any and all rights granted under any present or future laws to levy
or distrain for rent (whether in arrears or in advance) against the aforesaid property of the
Tenant on the Premises and further agrees to execute any reasonable instruments evidencing such
waiver, at any time or times hereafter upon the Tenant’s request including the “Landlord’s Waiver”
described in Section 56(c) hereof. The Tenant shall have the right, at any time or from time to
time, to remove such trade fixtures or equipment. If such removal damages any part of the
Premises, the Tenant shall repair such damages. Tenant is expressly authorized to finance, pledge,
and encumber its own trade fixtures, equipment, and inventory for purposes of financing such trade
fixtures, equipment and inventory.

SECTION 41. BINDING UPON SUCCESSORS

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

SECTION 42. HAZARDOUS SUBSTANCES

     (a) During the term of this Lease, Tenant shall not suffer, allow, permit or cause the
generation, accumulation, storage, possession, release or threat of release of any hazardous
substance or toxic material, as those terms are used in the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, and any regulations promulgated thereunder, or
any other present or future federal, state or local laws, ordinances, rules, and regulations.
Tenant shall indemnify and hold Landlord harmless from any and all liabilities, penalties, demands,
actions, costs and expenses (including without limitation reasonable attorney fees), remediation
and response costs incurred or suffered by Landlord directly or indirectly arising due to the
breach of Tenant’s obligations set forth in this Section. Such indemnification shall survive
expiration or earlier termination of this Lease. At the expiration or sooner termination hereof,
Tenant shall return the Premises to Landlord in

30

 

substantially the same condition as existed on the
date of commencement hereof free of any hazardous substances in, on or from the Premises.

     (b) Landlord hereby represents and warrants that, except as set forth in that certain Phase I
Environmental Site Assessment dated February 2006, prepared by Craig A. Edgerley of Mostardi Platt
Environmental: (i) it has not used, generated, discharged, released or stored any hazardous
substances on, in or under the Center and has received no notice and has no knowledge of the
presence in, on or under the Center of any such hazardous substances; (ii) to Landlord’s knowledge
there have never been any underground storage tanks at the Center, whether owned by the Landlord or
its predecessors in interest; (iii) to Landlord’s knowledge there have never been accumulated
tires, spent batteries, mining spoil, debris or other solid waste (except for rubbish and
containers for normal scheduled disposal in compliance with all applicable laws) in, on or under
the Center; (iv) to Landlord’s knowledge it has not spilled, discharged or leaked petroleum
products other than de minimis quantities in connection with the operation of motor vehicles on the
Center; (v) to Landlord’s knowledge there has been no graining, filling or modification of wetlands
(as defined by federal, state or local law, regulation or ordinance) at the Center; and (vi) to
Landlord’s knowledge there is no asbestos or asbestos-containing material in the Premises. The
representations and warranties set forth in this subparagraph shall apply to any contiguous or
adjacent property owed by the Landlord. Landlord hereby indemnifies Tenant for any and all loss,
cost, damage or expense to Tenant resulting from any misrepresentation or breach of the foregoing
representations and warranties.

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

SECTION 43. TRANSFER OF INTEREST

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

SECTION 44. ACCESS TO PREMISES

     Landlord and its representatives shall have free access to the Premises at all reasonable
times for the purpose of: (a) examining the same or to make any alterations or repairs to the
Premises that Landlord may deem necessary for its safety or preservation; (b) exhibiting the
Premises for sale or mortgage financing; (c) during the last three (3) months of the term of this

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Lease, for the purpose of exhibiting the Premises and putting up the usual notice “for rent” which
notice shall not be removed, obliterated or hidden by Tenant, provided, however, that any such
action by Landlord shall cause as little inconvenience as reasonably practicable and such action
shall not be deemed an eviction or disturbance of Tenant nor shall Tenant be allowed any abatement
of rent, or damages for an injury or inconvenience occasioned thereby.

SECTION 45. HEADINGS

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

SECTION 46. NON-WAIVER

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

SECTION 47. SHORT FORM LEASE

     This Lease shall not be recorded, but a short form lease, which describes the property herein
demised, gives the term of this Lease and refers to this Lease, shall be executed by the parties
hereto, upon demand of either party and such short form lease may be recorded by Landlord or Tenant
at any time either deems it appropriate to do so. The cost and recording of such short form lease
shall belong to the requesting party.

SECTION 48. ESTOPPEL CERTIFICATE

     Each party agrees that at any time and from time to time on ten (10) days prior written
request by the other, it will execute, acknowledge and deliver to the requesting party a statement
in writing stating that this Lease is unmodified and in full force and effect (or, if there have
been modifications, stating the modifications, and that the Lease as so modified is in full force
and effect, and the dates to which the rent and other charges hereunder have been paid, and such
other information as may reasonably re requested, it being intended that any such statements
delivered pursuant to this Section may be relied upon by any current or prospective purchaser of or
any prospective holder of a mortgage or a deed of trust upon or any interest in the fee or any
leasehold or by the mortgagee, beneficiary or grantee of any security or interest, or any assignee
of any thereof or under any mortgage, deed of trust or conveyance for security purposes now or
hereafter done or made with respect to the fee of or any leasehold interest in the Premises

SECTION 49. TENANT’S REIMBURSEMENT

     (a) Landlord shall pay Tenant One Hundred Eighty Thousand Dollars ($180,000.00) (the “Tenant
Reimbursement”), as payment for all costs incurred on behalf of Tenant for the purchase, erection,
and installation of Tenant Improvements on or within the Premises. “Tenant
Improvements” shall consist of the work described in the attached Exhibit “G”. The
Tenant Reimbursement shall be paid by Landlord to Tenant within ten (10) days of the later of (i)
Tenant opening for business in the Premises and (ii) Tenant providing to Landlord a lien waiver
from Tenant’s general contractor. In the event Landlord does not timely pay the Tenant
Reimbursement to Tenant, (a) Landlord shall pay to Tenant interest on such unpaid amounts the
Interest Rate and (b) Tenant shall have the right to deduct any and all such amounts owed Tenant
against payments of Rent thereafter due Landlord until such time as Tenant has been credited the
full amount of the Tenant Reimbursement plus applicable interest.

     (b) Notwithstanding anything to the contrary contained in this Lease, the Tenant Improvements
shall, at all times during the term of this Lease and upon the expiration or earlier termination of
this Lease, be the property of Landlord. Tenant shall not acquire any interest, equitable or
otherwise, in any Tenant Improvement.

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SECTION 50. TENANT’S TERMINATION RIGHT

     In the event (i) that Tenant’s gross sales (as defined in Section 5 of this Lease) shall be
less than Four Million Seven Hundred Fifty-one Thousand Eight Hundred Dollars ($4,751,800.00) in
either of the eighth or ninth Lease Years of the initial term hereof, and (ii) Tenant was open and
operating for business for the Permitted Use during the Center’s standard business days and hours
during the eighth and ninth Lease Years (unless Tenant was not open and operating on account of
casualty or condemnation), Tenant shall have the right, at Tenant’s sole election, provided that
Tenant is not then in default of the terms of this Lease beyond any applicable notice and cure
periods, on or before the date (the “Last Termination Notice Date”) which is thirty (30) days after
the end of the ninth Lease Year, to send to Landlord a notice terminating this Lease (“Termination
Notice”) as of the last day of the tenth Lease Year (the “Tenant’s Termination Date”). In the
event that Tenant shall so terminate this Lease in accordance with the provisions of this Section
50, then the term of this Lease shall terminate and expire on Tenant’s Termination Date with the
same force and effect as though said date was the scheduled expiration date of the term under this
Lease. Notwithstanding the giving of such Termination Notice and Tenant’s exercise of its
termination right under this Section 50, Tenant shall perform and observe all of Tenant’s
obligations under this Lease through and including the Tenant’s Termination Date and Tenant shall
pay to Landlord, simultaneous with the delivery of the Termination Notice, the sum of One Hundred
Thousand Dollars ($100,000.00). In the event Tenant exercises the termination right provided for
in this Section 50, Landlord shall have the right, upon ten (10) days prior written notice, at
Tenant’s corporate headquarters, to examine Tenant’s books and records relating to gross receipts
at the Premises, provided such right shall expire sixty (60) days after Tenant notifies Landlord of
Tenant’s exercise of Tenant’s election to terminate the Lease pursuant to the provisions of this
Section 50.

SECTION 51. NO BROKER

     Landlord and Tenant each represent to the other that they have not entered into any agreement
or incurred any obligation in connection with this transaction which might result in the obligation
to pay a brokerage commission to any broker. Each party shall indemnify and hold the other party
harmless from and against any claim or demand by any broker or other person for bringing about this
Lease who claims to have dealt with such indemnifying party, including all expenses incurred in
defending any such claim or demand (including reasonable attorney’s fees).

SECTION 52. UNAVOIDABLE DELAYS

     In the event either party hereto (the “Delayed Party”) shall be delayed or hindered in or
prevented from the performance of any act required under this Lease by reason of strikes, lockouts,
labor troubles, inability to procure materials, failure of power, the unforeseen application of
restrictive governmental laws or regulations, riots, insurrection, war, acts of terrorism or other
reason of a like nature not the fault of the Delayed Party in performing work or doing acts
required under the terms of this Lease, then performance of such act shall be excused for the
period of the delay, and the period for the performance of any such act shall be extended for a
period equivalent to the period of such delay, provided that the Delayed Party notified the other
party within fifteen (15) days of the Delayed Party being informed of the occurrence of the
event causing such delay. The provisions of this Section 52 shall not operate to excuse
either party from the payment of any rental or other monetary sums due under the terms of this
Lease.

SECTION 53. TIMELY EXECUTION OF LEASE 

     Landlord and Tenant agree that this Lease, and the parties’ obligations hereunder, shall
automatically be null and void and this Lease shall terminate automatically without further action
of the parties if both parties do not execute this Lease and both parties have not received an
original thereof within sixty (60) days after the date of execution hereof by the first party to
execute this Lease.

SECTION 54. ACCORD AND SATISFACTION

     No payment by Tenant or receipt by Landlord of a lesser amount than the entire rent and all
other additional rents and charges hereunder shall be deemed to be other than payment on

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account of
the earliest stipulated rent and other additional rents and charges hereunder, nor shall any
endorsement or statement on any check or any letter accompanying any check or payment for rent or
other additional rent and charges be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the balance of such rent and
other additional rents and charges or pursue any other right or remedy available to the Landlord.

SECTION 55. WAIVER OF JURY TRIAL

     Landlord and Tenant do hereby knowingly, voluntarily and intentionally waive the right to a
trial by jury of any and all issues either now or hereinafter provided by law in any action or
proceeding between the parties hereto, or their successors, arising directly or indirectly out of
or in any way connected with this Lease or any of its provisions, Tenant’s use or occupancy of said
premises and/or any claim for personal injury or property damage including, without limitation, any
action to rescind or cancel this Lease, and any claim or defense asserting that this Lease was
fraudulently induced or is otherwise void or voidable. It is intended that said waiver shall apply
to any and all defenses, rights and/or counterclaims in any action or proceeding at law or in
equity. This waiver is a material inducement for Landlord and Tenant to enter into this Lease.

SECTION 56. LEASEHOLD FINANCING

     (a) Landlord acknowledges and agrees that Tenant may from time to time during the term,
without the consent of Landlord, mortgage or otherwise finance and encumber, whether by leasehold
deed of trust or mortgage, collateral assignment of this Lease, lease/sublease-back, and/or
assignment/leaseback, any and/or all of its leasehold estate hereunder, and property and rights in
and to the Leased Premises granted to it under this Lease, as security for the payment of an
indebtedness (any and all of which are herein referred to as a “Leasehold Mortgage” and the holder
thereof is herein referred to as “Leasehold Mortgagee”). Any such Leasehold Mortgage shall be a
lien only upon Tenant’s leasehold estate hereunder and Tenant’s interests in this Lease and shall
not encumber Landlord’s fee simple title to the Center or the Leased Premises. Pursuant to any
such Leasehold Mortgage, the Leasehold Mortgagee or another person or entity (a “Successor-Tenant”)
may acquire title to Tenant’s interest in the leasehold estate in the Leased Premises in any lawful
way, including but not limited to, through foreclosure, assignment in lieu of foreclosure, or
otherwise. In such event, the Successor-Tenant shall succeed to the rights of Tenant under this
Lease, including the right to possession of the Leased Premises, in which event Landlord shall
recognize the Successor-Tenant as the tenant under this Lease, the same as if such Successor-Tenant
were the original tenant hereunder.

     (b) Tenant shall notify Landlord (and any Fee Mortgagee, as hereinafter defined in Section
56(d) below), in the manner hereinafter provided for the giving of notice, of the execution of such
Leasehold Mortgage and the name and place for service of notice upon Leasehold Mortgagee. Upon
such notification of Landlord that Tenant has entered into a Leasehold Mortgage, Landlord hereby
agrees for the benefit of such Leasehold Mortgagee, and upon written request by Tenant, to execute
and deliver to Tenant and Leasehold Mortgagee a “Landlord’s Agreement” whereby Landlord agrees to
recognize the interest of Leasehold
Mortgagee and any Successor-Tenant hereunder, on commercially reasonable terms and conditions
acceptable to Leasehold Mortgagee.

     (c) Landlord does hereby waive any statutory or other lien of the Landlord in Tenant’s present
and after-acquired assets, including among other things, Tenant’s inventory and equipment. To
evidence such waiver for the benefit of a lender of Tenant, Landlord agrees execute and deliver to
Tenant and any such lender a commercially reasonable “Landlord’s Waiver” whereby Landlord agrees to
waive any lien on Tenant’s assets including its inventory and equipment.

     (d) In the event that, at any time prior to the execution of this Lease and the recordation of
a memorandum of lease in accordance with Section 47 hereof, Landlord has mortgaged or otherwise
encumbered the fee simple title to the Premises, Landlord shall deliver to Tenant a commercially
reasonable SNDA (as defined in Section 11) containing terms substantially similar to the terms of
the document so entitled attached hereto and made a part hereof as Exhibit “I”, duly
executed by the holder of any such mortgage or encumbrance (the “Fee Mortgagee”). Landlord agrees
that Tenant’s obligations hereunder shall be contingent upon

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delivery by Landlord to Tenant of an
SNDA executed by the Fee Mortgagee on or before the Commencement Date, as more fully set forth in
Section 11.

(SIGNATURES ON FOLLOWING PAGE)

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