SUBLEASE AGREEMENT

Exhibit 10.2

SUBLEASE AGREEMENT

THIS SUBLEASE AGREEMENT is made and entered into this 12th day of January, 2006, by and between Coldwater Creek Inc., a for profit corporation duly organized and validly existing under the laws of the State of Delaware, having its principal office at One Coldwater Creek Drive, Sandpoint, Idaho 83864, and authorized to do business in the State of West Virginia (“Sublessor”) and Parkersburg-Wood County Area Development Corporation, a not for profit corporation duly organized and validly existing under the laws of the State of West Virginia, having its office at 408 Juliana Street, Parkersburg, West Virginia 26102 (“Sublessee”).

1. BASIC LEASE PROVISIONS.

Wood County Development Authority

Post Office Box 1683

408 Juliana Street

Parkersburg, West Virginia 26102

Attention: President

2. PRIME LEASE. Sublessor is the lessee under the Prime Lease identified in Section 1(E) with the Lessor. Sublessor represents and warrants to Sublessee that (a) Sublessor has delivered to Sublessee a full and complete copy of the Prime Lease and all other agreements between the Lessor and Sublessor relating to the leasing, use, and occupancy of the Premises, (b) the Prime Lease is, as of the date hereof, in full force and effect, and (c) no event of default has occurred under the Prime Lease and, to Sublessor’s knowledge, no event has occurred and is continuing which would constitute an event of default but for the requirement of the giving of notice or the expiration of the period of time to cure.

3. SUBLEASE. Sublessor, for and in consideration of the rents herein reserved and of the covenants and agreements herein contained on the part of Sublessee to be performed, hereby subleases to Sublessee, and Sublessee accepts from Sublessor, the Premises.

4. TERM. The term of this Sublease (the “Term”) shall commence on the Commencement Date. The Term shall expire on the date specified in Section 1(H) (the “Expiration Date”), unless sooner terminated as otherwise provided elsewhere in this Sublease.

5. POSSESSION. Sublessor agrees to deliver possession of the Premises on the Commencement Date.

6. SUBLESSEE’S USE. The Premises shall be used and occupied only for Sublessee’s Use set forth in Section 1(B).

7. GENERAL COOPERATION DURING CONSTRUCTION OF THE EXPANSION.

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8. RENT. Beginning on the Commencement Date, Sublessee agrees to pay the Base Rent set forth in Section 1(I) to the Payee specified in Section 1(J), at the address specified in Section 1(K), or to such other payee or at such other address as may be designated by notice in writing from Sublessor to Sublessee, without prior demand therefor and without any deduction whatsoever. Base Rent shall be paid in advance on the first day of each month of the Term, except that the first payment of Base Rent shall be paid by Sublessee to Sublessor upon execution of this Sublease by Sublessee. Base Rent shall be pro-rated for partial months at the beginning and end of the Term. All charges, costs and sums required to be paid by Sublessee to Sublessor under this Sublease in addition to Base Rent shall be deemed “Additional Rent,” and Base Rent and Additional Rent shall hereinafter collectively be referred to as “Rent.” Sublessee’s covenant to pay Rent shall be independent of every other covenant in this Sublease.

9. SUBLESSEE’S OBLIGATIONS. Sublessee shall be responsible for, and shall pay the following:

10. QUIET ENJOYMENT. Sublessor represents that it has full power and authority to enter into this Sublease, subject to the consent of the Lessor, if required under the Prime Lease. So long as Sublessee is not in default in the performance of its covenants and agreements in this Sublease, Sublessee’s quiet and peaceable enjoyment of the Premises shall not be disturbed or interfered with by Sublessor, or by any person claiming by, through, or under Sublessor.

11. SUBLESSEE’S INSURANCE. Sublessee shall procure and maintain, at its own cost and expense, such liability insurance as is required to be carried by Sublessor under the

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Prime Lease, naming Sublessor, as well as the Lessor, in the manner required therein, and such property insurance as is required to be carried by Sublessor under the Prime Lease to the extent such property insurance pertains to the Premises. If the Prime Lease requires Sublessor to insure leasehold improvements or alterations, then Sublessee shall insure such leasehold improvements which are located in the Premises, as well as alterations in the Premises made by Sublessee. Sublessee shall furnish to Sublessor a certificate of Sublessee’s insurance required hereunder not later than ten (10) days prior to Sublessee’s taking possession of the Premises. Each party hereby waives claims against the other for property damage provided such waiver shall not invalidate the waiving party’s property insurance; each party shall attempt to obtain from its insurance carrier a waiver of its right of subrogation. Sublessee hereby waives claims against Lessor and Sublessor for property damage to the Premises or its contents if and to the extent that Sublessor waives such claims against the Lessor under the Prime Lease. Sublessee agrees to obtain, for the benefit of Lessor and Sublessor, such waivers of subrogation rights from its insurer as are required of Sublessor under the Prime Lease. Sublessor agrees to use reasonable efforts in good faith to obtain from the Lessor a waiver of claims for insurable property damage losses and an agreement from the Lessor to obtain a waiver of subrogation rights in the Lessor’s property insurance, if and to the extent that Lessor waives such claims against Sublessor under the Prime Lease or is required under the Prime Lease to obtain such waiver of subrogation rights.

12. ASSIGNMENT OR SUBLETTING. Sublessee shall not (i) assign, convey or mortgage this Sublease or any interest under it; (ii) allow any transfer thereof or any lien upon Sublessee’s interest by operation of law; (iii) further sublet the Premises or any part thereof; or (iv) permit the occupancy of the Premises or any part thereof by anyone other than Sublessee. Sublessor’s consent to an assignment of this Sublease or a further sublease of the Premises shall not be unreasonably withheld, and if Sublessor consents thereto, Sublessor shall use reasonable efforts to obtain the consent of Lessor if such consent is required to be obtained under the Prime Lease.

No permitted assignment shall be effective and no permitted sublease shall commence unless and until any default by Sublessee hereunder shall have been cured. No permitted assignment or subletting shall relieve Sublessee from Sublessee’s obligations and agreements hereunder and Sublessee shall continue to be liable as a principal and not as a guarantor or surety to the same extent as though no assignment or subletting had been made.

13. RULES. Sublessee agrees to comply with all rules and regulations that Lessor has made or may hereafter from time to time make for the Premises.

14. COMPLIANCE WITH LAWS. Sublessee shall, at Sublessee’s own expense, comply with all laws and ordinances, and all orders, rules and regulations of all governmental authorities and of all insurance bodies and their fire prevention engineers at any time in force, applicable to the Premises or to Sublessee’s particular use or manner of use thereof.

15. FIRE OR CASUALTY OR EMINENT DOMAIN. In the event of a fire or other casualty affecting the Building or the Premises, or of a taking of all or a part of the Building or Premises under the power of eminent domain, Sublessor shall not exercise any right which may have the effect of terminating the Prime Lease without first obtaining the prior written consent of

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Sublessee. In the event Sublessor is entitled, under the Prime Lease, to a rent abatement as a result of a fire or other casualty or as a result of a taking under the power of eminent domain, then Sublessee shall be entitled to the Sublease Share of such rent abatement unless the effect on the Premises of such fire or other casualty or such taking shall be substantially disproportionate to the amount of the abatement, in which event the parties shall equitably adjust the abatement as between themselves, based on the relative impact of the fire or other casualty, or the taking, as the case may be. If the Prime Lease imposes on Sublessor the obligation to repair or restore leasehold improvements or alterations, Sublessee shall be responsible for repair or restoration of leasehold improvements or alterations; Sublessee shall make any insurance proceeds resulting from the loss which Sublessor is obligated to repair or restore available to Sublessor and shall permit Sublessor to enter the Premises to perform the same, subject to such conditions as Sublessee may reasonably impose.

16. SURRENDER. Upon the expiration of this Sublease, or upon the termination of the Sublease or of Sublessee’s right to possession of the Premises, Sublessee will at once surrender and deliver up the Premises, together with all improvements thereon, to Sublessor in good condition and repair, reasonable wear and tear excepted; conditions existing because of Sublessee’s failure to perform maintenance, repairs or replacements as required of Sublessee under this Sublease shall not be deemed “reasonable wear and tear.” Said improvements shall include all buildings, plumbing, lighting, electrical, heating, cooling and ventilating fixtures and equipment and other articles of personal property used in the operation of the Premises. Sublessee shall surrender to Sublessor all keys to the Premises and make known to Sublessor the combination of all combination locks which Sublessee is permitted to leave on the Premises.

17. ENCUMBERING TITLE. Except for the lien of United Bank, Inc., Sublessee shall not do any act which shall in any way encumber the title of Lessor in and to the Premises or the Property, nor shall the interest or estate of Lessor or Sublessor be in any way subject to any claim by way of lien or encumbrance, whether by operation of law by virtue of any express or implied contract by Sublessee, or by reason of any other act or omission of Sublessee. Any claim to, or lien upon, the Premises or the Property arising from any act or omission of Sublessee shall accrue only against the subleasehold estate of Sublessee and shall be subject and subordinate to the paramount title and rights of Lessor in and to the Premises and the Property and the interest of Sublessor in the premises leased pursuant to the Prime Lease. Without limiting the generality of the foregoing, Sublessee shall not permit the Premises or the Property to become subject to any mechanics,’ laborers’ or materialmen’s lien on account of labor or material furnished to Sublessee or claimed to have been furnished to Sublessee in connection with work of any character performed or claimed to have been performed on the Premises by, or at the direction or sufferance of, Sublessee, provided, however, that if so permitted under the Prime Lease, Sublessee shall have the right to contest in good faith and with reasonable diligence, the validity of any such lien or claimed lien if Sublessee shall give to Lessor and Sublessor such security as may be deemed satisfactory to them to assure payment thereof and to prevent any sale, foreclosure, or forfeiture of the Premises or the Property by reason of nonpayment thereof, provided further, however, that on final determination of the lien or claim of lien, Sublessee shall immediately pay any judgment rendered, with all proper costs and charges, and shall have the lien released and any judgment satisfied.

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18. SUBLESSOR’S RESERVED RIGHTS. Sublessor reserves the right, on reasonable prior notice, to inspect the Premises, or to exhibit the Premises to persons having a legitimate interest at any time during the Sublease term.

19. DEFAULTS. Sublessee further agrees that any one or more of the following events shall be considered Events of Default as said term is used herein:

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20. REMEDIES. Upon the occurrence of any one or more Events of Default, Sublessor may exercise any remedy against Sublessee which Lessor may exercise for default by Sublessor under the Prime Lease.

21. NOTICES AND CONSENTS. All notices, demands, requests, consents or approvals which may or are required to be given by either party to the other shall be in writing and shall be deemed given if delivered personally, by confirmed facsimile transmission (with follow-up hard copy) or one (1) day after sent by guaranteed overnight delivery, or five (5) calendar days after mailed by registered or certified mail, postage prepaid, return receipt requested, addressed as follows or to such other address as any party may specify by like notice (provided, however, that notices of a change of address or person to whom notice shall be given shall be made in accordance with this paragraph and shall be effective only upon receipt thereof):

To the Sublessee:

To the Sublessor:

22. PROVISIONS REGARDING SUBLEASE. This Sublease and all the rights of parties hereunder are subject and subordinate to the Prime Lease. Each party agrees that it will not, by its act or omission to act, cause a default under the Prime Lease. This Sublease Agreement is made subject and subordinate to the current credit line deed of trust in the amount of $20,000,000 in favor of United Bank, Inc., and any future mortgages, deeds of trust or ground leases and any, amendments, replacements, renewals and extensions thereof. In furtherance of

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the foregoing, the parties hereby confirm, each to the other, that it is not practical in this Sublease agreement to enumerate all of the rights and obligations of the various parties under the Prime Lease and specifically to allocate those rights and obligations in this Sublease agreement. Accordingly, in order to afford to Sublessee the benefits of this Sublease and of those provisions of the Prime Lease which by their nature are intended to benefit the party in possession of the Premises, and in order to protect Sublessor against a default by Sublessee which might cause a default or event of default by Sublessor under the Prime Lease:

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23. LESSOR’S CONSENT. This Sublease and the obligations of the parties hereunder are expressly conditioned upon Sublessor’s obtaining prior written consent hereto by Lessor, if such written consent is required under the Prime Lease. Sublessee shall promptly deliver to Sublessor any information reasonably requested by Lessor (in connection with Lessor’s approval of this Sublease) with respect to the nature and operation of Sublessee’s business and/or the financial condition of Sublessee. Sublessor and Sublessee hereby agree, for the benefit of Lessor, that this Sublease and Lessor’s consent hereto shall not (a) create privity of contract between Lessor and Sublessee; (b) be deemed to have amended the Prime Lease in any regard (unless Lessor shall have expressly agreed in writing to such amendment); or (c) be construed as a waiver of Lessor’s right to consent to any assignment of the Prime Lease by Sublessor or any further subletting of premises leased pursuant to the Prime Lease, or as a waiver of Lessor’s right to consent to any assignment by Sublessee of this Sublease or any sub-subletting of the Premises or any part thereof. Lessor’s consent shall, however, be deemed to evidence Lessor’s agreement that Sublessee may use the Premises for the purposes set forth in Section 1(B) and that Sublessee shall be entitled to any waiver of claims and of the right of subrogation for damage to Lessor’s property if and to the extent that the Prime Lease provides such waivers for the benefit of Sublessor.

24. FORCE MAJEURE. Sublessor shall not be deemed in default with respect to any of the terms, covenants and conditions of this Sublease on Sublessor’s part to be performed, if Sublessor’s failure to timely perform same is due in whole or in part to any strike, lockout, labor trouble (whether legal or illegal), civil disorder, failure of power, restrictive governmental laws and regulations, riots, insurrections, war, shortages, accidents, casualties, acts of God, acts caused directly by Sublessee or Sublessee’s agents, employees and invitees or any other cause beyond the reasonable control of Sublessor. This Section shall not be applicable, however, if Sublessor’s failure timely to perform creates a default by Sublessor under the Prime Lease.

25. ADDITIONAL PROVISIONS.

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The parties have executed this Sublease the day and year first above written.

Lessor acknowledges and consents to this Sublease Agreement:

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EXHIBIT A

Description of the Premises

DESCRIPTION OF SURVEY

FOR

11.31 ACRE TRACT

A tract of land, situate on the Coldwater Creek Distributors property, located in Tygart District, Wood County, West Virginia, more particularly described as follows;

Beginning at a point in the common division line between Clearwater Creek Distributors, and the Parkersburg / Wood County Development Corporation, from which a 5/8 inch rebar bears S 35º19’ W at 639.30 feet, thence running with said Development Corporation

N 35º19’ E, 494.00 feet to a point, from which a 5/8 inch rebar bears N 35º19’ E at 182.14 feet, thence leaving said Development Corporation and running through and across the property from which this conveyance is a part of

S 54º29’ E, 998.01 feet to a point, thence

S 35º31’ W, 494.00 feet to a point, thence

N 54º29’ W, 996.32 feet to the point of beginning containing 11.31 acres more or less as shown on a plat of survey by Potesta and Associates, Inc., dated October, 2005, said plat is hereby made mention of and made a part of this description.

EXHIBIT B

Plans and Specifications

EXHIBIT C

Form of Certificate of Acceptance

CERTIFICATE OF ACCEPTANCE

Pursuant to and as required by the SUBLEASE AGREEMENT dated as of January ___, 2006 (the “Sublease Agreement”) between PARKERSBURG-WOOD COUNTY AREA DEVELOPMENT CORPORATION, as Sublessee (the “Sublessee”), and COLDWATER CREEK INC., as Sublessor (the “Sublessor”). The Sublessor hereby certifies that the status of work on the Expansion is as described in the Plans and Specifications and the Certificate of Substantial Compliance tendered by the contractor for the work, and that it hereby accepts the Expansion effective ________________, 200_. Terms used herein shall have the meanings ascribed to them in the Sublease Agreement.

The Sublessor hereby represents and warrants to the Lessor and to the Sublessee that on the date hereof:

IN WITNESS WHEREOF, the Sublessee has caused this Certificate of Acceptance to be duly executed by its officers thereunto duly authorized this ____ day of __________, 2006.